Question : Loss on issue of debenture is treated as
Option 1: Intangible Asset
Option 2: Current Asset
Option 3: Current Liability
Option 4: Miscellaneous Expenditure
Answer (1)
25th Jan, 2024
Correct Answer: Miscellaneous Expenditure
Solution : The difference between the Redeemable Value and the Face Value is the loss on issuance of debentures. The "Loss on Issue of Debentures Account" is debited and it is considered as a Miscellaneous Expense.
Hence the correct answer is option 4.
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