CUET Preparation Today
| Discount on issue of Debentures is in the nature of: |
Revenue Loss Capital Loss Deferred Revenue Expenditure Debentures Suspense A/c |
| Capital Loss |
| The discount/loss on issue of debentures is a capital loss or a fictitious asset and, therefore, must be written-off during the life time of debentures. The amount of discount/loss on issue of debentures should normally not be written-off in the year of issue itself since the benefit of the debentures would accrue to the company till their redemption. The discount/loss on it is, therefore, treated as capital loss. |
