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This question belongs to Commerce Business And Commerce
Business and Commerce
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Dividend and interest are _______.

Answer & Solution
Correct Answer: Option C
Dividend and interest are debited to profit and loss account. Debentures interest is a business expensed and therefore, it is a charge against profit and as such profit and loss account is debited with the total amount of interest payable during the accounting year whether the company has earned the profit or not.
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2 Comments
Maryam Chaudhri
Maryam Chaudhri 4 years ago
Option B is correct
Ramesh Chilaka
Ramesh Chilaka 8 years ago
Option B is correct