Question : The nature of a discount on the issuance of debentures is-
Option 1: Revenue Loss
Option 2: Deferred Revenue Expenditure
Option 3: Capital Loss
Option 4: None of the above
Answer (1)
8th Jan, 2024
Correct Answer: Capital Loss
Solution : When debentures are issued at a price less than the face value of debentures, it is termed as an issue of debentures at a discount. This discount on the issue of debentures is like a capital loss.
Hence the Correct Answer is Option 3
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