Interest on debenture is a/an which of the following?

Charge on profit Provison Appropraition None of the above

Charge on profit

The interest paid on debentures represents an expense for the company, and it is deducted from the company's profits before calculating the net profit available to shareholders. In this sense, debenture interest is a charge against profit for the purpose of servicing the debt. It will be paid irrespective of the profit or loss of the company.