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Question

Loss on issue of debentures is treated as _______________.

A
Intangible asset
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B
Current asset
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C
Current liability
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D
Miscellaneous expenditure
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Solution

The correct option is C Miscellaneous expenditure
Loss on issue of debentures eans the difference between the Redeemable Value and the Face Value. It is treated as a Miscellaneous expenditure and is debited to "Loss on Issue of Debentures Account."

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Issued at Par and Redeemed at Par
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