CBSE Class 12-commerce Answered
How is dicount on issue of debentures written off?
Is it written off comoletely in the year it has incurred or it is written off according to redemption of debentures
Asked by devendradhamor26 | 21 Feb, 2020, 11:23: AM
Expert Answer
Discount on issue of debentures is a loss of capital nature and is to be written off as quickly as possible. This can be done in 2 ways:
- Discount is spread over the life of debentures equally.
- Discount is written off every year in proportion to the amount of debentures used every year.
Answered by Surabhi Gawade | 22 Feb, 2020, 03:05: PM
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