Question : Which of the following statements is false?
Option 1: Loss on Issue of Debentures is debited at the time of issue of debentures following the Prudence Concept of Accounting.
Option 2: Loss on Issue of Debentures is written off from Securities Premium Reserve, if it exists and thereafter from Statement of Profit and Loss.
Option 3: Loss on Issue of Debentures Account is an Expense Account and Premium on Redemption of Debentures Account is a Liability Account.
Option 4: Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.
Correct Answer: Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.
Solution : Answer = Premium on Redemption of Debentures Account is credited at the time of payment, i.e., on redemption of debentures.
Discount or Loss on Issue of Debentures is a capital loss for a company, which is written off in the year it is incurred, i.e., in the year the debentures are allotted from: (i) Securities Premium Reserve, if it exists, i.e., has a balance, and (ii) Statement of Profit and Loss. At the time of redemption of Debentures premium on redemption of Debentures A/c is debited.
Question : Which of the following are not the Characteristics of Statement of Profit and Loss (Profit and Loss Account)?
Question : What ate the reports that computerized accounting software takes into consideration as input through Accounting Software?
Question : Which of the following statements is true?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile