Question : Loss/Discount or Loss on Issue of Debentures is written off from
Option 1: Securities Premium Reserve.

Option 2: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.

Option 3: Statement of Profit and Loss.

Option 4: General Reserve

Question

Question : Loss/Discount or Loss on Issue of Debentures is written off from

Option 1: Securities Premium Reserve.

Option 2: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.

Option 3: Statement of Profit and Loss.

Option 4: General Reserve

Team Careers360 · Accepted Answer

Correct Answer: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.

Solution : Answer = Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss

Loss or discount on the issue of debentures is initially written off from the Securities Premium Reserve if it exists. If the amount exceeds the balance in the Securities Premium Reserve, the remaining portion is then charged to the Statement of Profit and Loss.
Hence, the correct option is 2.

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Question : Loss/Discount or Loss on Issue of Debentures is written off fromOption 1: Securities Premium Reserve. Option 2: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss. Option 3: Statement of Profit and Loss. Option 4: General Reserve

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Question : Loss/Discount or Loss on Issue of Debentures is written off from
Option 1: Securities Premium Reserve.

Option 2: Securities Premium Reserve (if it exists) and thereafter from Statement of Profit and Loss.

Option 3: Statement of Profit and Loss.

Option 4: General Reserve