Question : Discount on issue of debenture is a
Option 1: Capital loss to be written off over the tenure of the debentures
Option 2: Revenue loss to be charged in the year of issue
Option 3: Capital loss to be written off from Capital Reserve
Option 4: Capital loss to be shown as goodwill

Question

Question : Discount on issue of debenture is a

Option 1: Capital loss to be written off over the tenure of the debentures

Option 2: Revenue loss to be charged in the year of issue

Option 3: Capital loss to be written off from Capital Reserve

Option 4: Capital loss to be shown as goodwill

Team Careers360 · Accepted Answer

Correct Answer: Capital loss to be written off over the tenure of the debentures

Solution : According to ICAI standards, the discount on the issuance of debentures represents a capital loss that must be charged to the "Securities Premium Account" over the tenure of a debenture. The discount on the issuance of debentures may be written off by debiting either the securities premium account or the profit and loss account.

Hence the correct answer is option 1.

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Question : Discount on issue of debenture is aOption 1: Capital loss to be written off over the tenure of the debenturesOption 2: Revenue loss to be charged in the year of issueOption 3: Capital loss to be written off from Capital ReserveOption 4: Capital loss to be shown as goodwill

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Question : Discount on issue of debenture is a
Option 1: Capital loss to be written off over the tenure of the debentures
Option 2: Revenue loss to be charged in the year of issue
Option 3: Capital loss to be written off from Capital Reserve
Option 4: Capital loss to be shown as goodwill

Question :
Intel Ltd. issued 10,000, 7% Debentures of Rs. 100 each at a discount of 10%. It has Securities Premium Reserve of Rs.1,50,000.Discount on Issue of Debentures, i.e., Rs. 1,00,000 will be written off by passing the following

Question :
Citizen Ltd. issued 10,000, 6% Debentures of Rs. 100 each at a discount of 10% redeemable at 10% premium. It has Securities Premium Reserve of Rs. 1,75,000. Loss on Issue of Debentures Rs. 2,00,000 will be written off by