The income tax deducted from interest paid on debentures is shown on the _____________.

Assets side of the balance sheet

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Liability side of the balance sheet

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Credit side of profit & loss account

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Debit side of profit & loss account

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Solution

The correct option is B Liability side of the balance sheet
Tax deducted from interest paid on debentures is always shown on the liabilities side of the balance sheet. It is liability for the company as the company has deducted it on the behalf of the government and it has to be given to the government.

Suggest Corrections

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