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Home › Bihar Board Class 12 (Commerce) › Accountancy › Issue and Redemption of Debentures › Payment of dividend on shares is treated as

Payment of dividend on shares is treated as

AAn appropriation
BA cost of business
CA charge on profits
DA repayment of loan
Answer & Solution
Correct answer: A. An appropriation
Dividend is distributed out of profits, whereas debenture interest is charged before arriving at profit.
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