Q377
Interest on debentures is calculated on
A.
Purchase value of debentures
B.
Market value of debentures
C.
Face value of debentures
AnswerD.
All of the above
Answer: Option C
Solution
Answer: Option C
Solution:
Interest on debentures is calculated on Face value of debentures. This interest amount is paid periodically, generally yearly or half-yearly. The interest is a charge against the profit of the company.