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Prior to incorporation

Accountancy

In illustration 4, Here debenture interest is charged to post incorporation period. But debentures were issued to settle purchase consideration of vendors which was due in both pre and post period. Why is it not distributed in that ratio?


Aman Mahajan

Aman Mahajan

CA Final

19K+

27-Jan-21 11:20

267

Answers (1)

Interest on debenture is a post incorporation expense


ruchi lahoti

ruchi lahoti

CA Inter

27K+

27-Jan-21 18:11

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