Practicing Success
Practicing Success
CUET Preparation Today
| Loss on issue of debentures is generally written off in how much time? |
Over the period of redemption 5 years 10 years During the period as fixed by Companies Act 2013. |
| Over the period of redemption |
| Discount on issue of debentures is a capital loss and is shown under the line item ‘Other Non-Current Assets’ or ‘Other Current Assets’ depending upon the time period in which it is to be written off. The discount on issue of debentures can be written off either by debiting it to Statement of Profit and Loss or out of Securities Premium Reserve A/c, if any, during the life time of debentures. Discount on issue of debentures to be written off within 12 months of the balance sheet date or the period of operating cycle is shown under ‘Other Current Assets’ and the part which is to be written off after 12 months of balance sheet is shown under ‘Other Non-Current Assets’ |
