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Eps As 20 ,illu 5
Accountancy
Why did they add interest expense of 12,00,000 shouldn't it be substracted from net profit.
Answers (2)
Best Answer
For the computation of Diluted EPS, the debentures have been converted into Equity shree which is a potential equity share, So the interest paid on debentures is a saving bcoz of conversion, so the net profit will be adjusted by increasing the interest saving on the debentures
