Fundemental accounting
This query is : Resolved
25 November 2011
in company final account ,why interest paid to debentures is debit to p&l a/c? And why dividend paid to share holder is debit to p&l apporation a/c. ?
25 November 2011
Becoz : Interest paid to debentures is an expense of the company.
Whereas,
Dividend paid to shareholders is a distribution of profit to the shareholders.
I hope you got the point.
Whereas,
Dividend paid to shareholders is a distribution of profit to the shareholders.
I hope you got the point.
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