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In which account Dividend & Interest take place?

48. In which account Dividend & Interest take place?

1. Profit & Loss Account
2. Current Account
3. Savings Account
4. Personal Account

Answer: A) Profit & Loss Account

Explanation:

Profit and premium are charged to benefit and misfortune account. Debentures premium is a business discounted and hence, it is a charge against benefit and as such benefit and misfortune account is charged with the aggregate sum of revenue payable during the bookkeeping year whether or not the organization has procured the benefit.