Discount on issue of debentures could be

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Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:

Discount on issue of debentures could be written off over which period in the context of Schedule III of the Companies Act 2013?

Options:

Over the Period of debentures

Adjusted against P and L in the year of issue of debentures.

Adjusted against P and L in the year of redemption of debentures.

None of the above

Correct Answer:

Over the Period of debentures

Explanation:

As per Schedule III of the Companies Act 2013, borrowing costs such as discount on issue of debentures could be written off over loan period.