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Question
Discount on issue of debentures is a ______
Options
revenue loss to be charged in the year of issue.
capital loss to be written off from capital reserve.
capital loss to be written off over the tenure of the debentures.
capital loss to be shown as goodwill.
MCQ
Fill in the Blanks
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Solution
A discount on the issue of debentures is a capital loss to be written off over the tenure of the debentures.
Explanation:
A discount on debenture issuance is a capital loss that must be written off over the life of the debentures.
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