Loss on Issue of Debenture Account is shown on which of the following statement?

On Assets side of Balance Sheet On Liabilities side of Balance Sheet On Credit side of P & L Account None of these

On Assets side of Balance Sheet

As per the revised schedule VI of the Companies Act, it should be shown on the Asset side of balance sheet under “Other Non Current Assets” heading until it is written off. 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. The discount may be charged to Securities Premium A/c or may be written-off over 3 to 5 years through statement of profit and loss as per guidelines issued by ICAI. In case, however, there are no capital profits or if the capital profits are not adequate, the amount of such discount/loss can be written-off against the revenue profits every year by passing the following journal entry. Statement of Profit and Loss Dr. To Discount/Loss on Issue of Debentures A/c (Discount/loss on issue of debentures written-off)