Question : The nature of a discount on the issuance of debentures is-
Option 1: Revenue Loss
Option 2: Deferred Revenue Expenditure
Option 3: Capital Loss
Option 4: None of the above
Correct Answer: Capital Loss
Solution : When debentures are issued at a price less than the face value of debentures, it is termed as an issue of debentures at a discount. This discount on the issue of debentures is like a capital loss.
Hence the Correct Answer is Option 3
Question : Income and expenditure account records income and expenditure of :
Question : ‘Discount on issue’ is a ………….. and will be ----------- during the life time of the debentures. But till then it will be shown as --------------’ on the Assets side of the Balance Sheet.
Question : Fill in the blanks- ____________________= Revenue expenditure - Revenue receipts.
Question : Which of the following is non-recurring in nature?
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