CUET Preparation Today
| What is the nature of Discount on the issue of Debentures? |
Revenue Loss Deferred Revenue Expenditure Capital Loss Capital profit |
| Capital Loss |
| Discount on issue of debentures is a capital loss and over a period of 3 to 5 years or is charged to “Securities Premium Account” as per the guidelines issued by ICAI. The discount on issue of debentures can be written-off either by debiting it to profit and loss or to securities premium account. |
