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CBSE Class 12-commerce Answered

How do I calculate interest on Debentures in cash flow statement??
Asked by saswata.choudhury2 | 24 Jan, 2019, 12:06: AM
answered-by-expert Expert Answer
Debentures are a type of loan taken by the company for which interest is payable. Rate of interest on debentures is given in the question. Using that rate, interest is calculated on the amount of debentures for a period for which it is used in the business during a particular year. If the amount is used for 6months, interest will be calculated just for 6months at the rate given in the question.
Answered by Surabhi Gawade | 24 Jan, 2019, 09:23: AM

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