Discount on issue of debentures is a/an .

revenue

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reserve

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asset

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liability

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Solution

The correct option is C asset
Discount on issue of debentures is an asset. For company, the benefit of giving this discount is going to be there till the debentures are redeemed. So this discount is not an expense, instead, it is an asset for the company. Now this asset is written off over the life of debentures.

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Similar questions

Q. Discount on issue of debentures is ____________.

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How is 'Discount on Issue of Debentures' treated in the books of accounts? How will you deal with the 'Discount on issue of debentures' when the debentures are to be redeemed in instalments?

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