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Assertion (A): Premium on issue of debentures is a capital gain for the company. Reason (R): Loss on issue of debentures is a revenue loss. - Accounts

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Question

Assertion (A): Premium on issue of debentures is a capital gain for the company.

Reason (R): Loss on issue of debentures is a revenue loss.

In the context of the above two statements, which of the following is correct?

Options

  • (A) is correct, but (R) is wrong.

  • Both (A) and (R) are correct.

  • (A) is wrong, but (R) is correct.

  • Both (A) and (R) are wrong.

MCQ
Assertion and Reasoning
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Solution

(A) is correct, but (R) is wrong.

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Chapter 7: Company Accounts - Issue of Debentures - OBJECTIVE TYPE QUESTIONS [Page 7.75]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 7 Company Accounts - Issue of Debentures
OBJECTIVE TYPE QUESTIONS | Q B. 6. | Page 7.75
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