Accountancy Part AIssue and Redemption of Debentures

Interest on debenture is a ............... against the profit of the…

Interest on debenture is a ............... against the profit of the company and must be paid whether the company has earned any profit or not.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Charge

NCERT (2026-27 edition):
Interest on Debentures – “… Interest on debenture is a charge against the profit of the company and must be paid whether the company has earned any profit or not.”