Explanation:

Interest is an award that all debenture holders receive for investing in the debentures of a company. Usually, the company pays the interest at the regular interval at the pre-set rate of interest on its face value. the treatment of interest is that it is a charge on profit. The company has to pay the interest to its debenture holders if the company acquires any profit. The interest on debentures is a charge to the profit of the company.