The payment of interest should be vouched with the acknowledgment of the debenture holders, endorsed warrants and in the case of bearer debentures, with the coupons surrendered. The total amount paid should be reconciled with the total amount due and payable with the amount of interest outstanding for payment. Interest on debentures is payable whether or not any profit is made. Therefore, a provision should be made unless it has been specially agreed with the debenture holders that interest in such a case would be waived them. The interest paid on debentures, like that on other fixed loans, must be disclosed as a separate item in the Profit and Loss Account.
(Visited 2 times, 1 visits today)