CUET Preparation Today
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): The 'discount on debentures issuance is charged to 'Securities Premium Account' and is reflected as an asset. |
Both (A) and (R) are true, but (R) is the correct explanation of (A). Both (A) and (R) are true, but (R) is not the correct explanation of (A). (A) is true, but (R) is false. (A) is false, but (R) is true. |
Both (A) and (R) are true, but (R) is the correct explanation of (A). |
The 'discount on debentures' issuance is noted as a capital loss and is charged to 'Securities Premium Account' and is reflected on the asset side as a fictitious asset. Hence, has to be written off during the year of its issue. |
