Discount on issue of debentures is_____.

Revenue loss

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Capital Profit

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Capital loss

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Capital receipt

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Solution

The correct option is C Capital loss
When debentures are issued by company at a price less than its nominal value (face value) it is said to be issued at discount. For example, if a debenture of Rs. 100 is offered to public at Rs. 95, it is issue at a discount, Rs. 50 on each debenture is loss to the company and is known as debenture at discount.

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