Skip to main contentSkip to solution

When debentures are issued at discount and redeemable at a premium, ___________ account will be _________ for combined capital loss of issue and redemption of debentures.

Solution

✅ Correct Option: 2

Where debentures are issued at a discount and are also redeemable at a premium, both the discount and the premium payable are capital losses arising from the same issue. They are combined and recorded in a single Loss on Issue of Debentures Account, which is debited at the time of issue and later written off against Securities Premium or Statement of Profit and Loss.

Keyboard Shortcuts

  • Left arrow: Previous question
  • Right arrow: Next question
  • S key: Jump to solution
  • Q key: Jump to question