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Benefits of Debentures

When making r...

Question

When making repayments on a lease, the profit and loss account will contain which items relevant to the lease?

A

Instalment charges only

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B

Interest only

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C

Interest and instalment charges

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D

Neither interest or instalment charges

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Solution

The correct option is B Interest only
Profit or loss calculated while making repayments on a lease contains an account of only Interest. Instalment charges aren't taken under consideration.

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