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Direction: Choose the correct answer to the following questions from the given alternatives:
Till debentures are redeemed, loss on issue of debentures is:
  • a)
    Shown as Miscellaneous expenditure in Balance sheet
  • b)
    Shown as a deduction from debentures
  • c)
    Shown as an asset
  • d)
    Not shown in balance sheet
Correct answer is option 'A'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from t...
Explanation:


  • Loss on issue of debentures: This represents the amount by which the proceeds from the debenture issue are less than the face value of the debentures. It is considered a cost for the company.

  • Shown as Miscellaneous expenditure in Balance sheet: Until the debentures are redeemed, the loss on issue of debentures is treated as a deferred revenue expenditure and shown under the head of miscellaneous expenditure in the balance sheet.

  • Deferred Revenue Expenditure: It is an expenditure incurred in a particular accounting period, the benefits of which are to be derived over a number of future accounting periods. It is carried forward and amortized over a period of time.

  • Impact on Balance Sheet: By showing the loss on issue of debentures as miscellaneous expenditure, the balance sheet reflects the true financial position of the company by recognizing the cost associated with the debenture issue.

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Direction: Choose the correct answer to the following questions from the given alternatives:Till debentures are redeemed, loss on issue of debentures is:a)Shown as Miscellaneous expenditure in Balance sheetb)Shown as a deduction from debenturesc)Shown as an assetd)Not shown in balance sheetCorrect answer is option 'A'. Can you explain this answer?
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Direction: Choose the correct answer to the following questions from the given alternatives:Till debentures are redeemed, loss on issue of debentures is:a)Shown as Miscellaneous expenditure in Balance sheetb)Shown as a deduction from debenturesc)Shown as an assetd)Not shown in balance sheetCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Direction: Choose the correct answer to the following questions from the given alternatives:Till debentures are redeemed, loss on issue of debentures is:a)Shown as Miscellaneous expenditure in Balance sheetb)Shown as a deduction from debenturesc)Shown as an assetd)Not shown in balance sheetCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Choose the correct answer to the following questions from the given alternatives:Till debentures are redeemed, loss on issue of debentures is:a)Shown as Miscellaneous expenditure in Balance sheetb)Shown as a deduction from debenturesc)Shown as an assetd)Not shown in balance sheetCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction: Choose the correct answer to the following questions from the given alternatives:Till debentures are redeemed, loss on issue of debentures is:a)Shown as Miscellaneous expenditure in Balance sheetb)Shown as a deduction from debenturesc)Shown as an assetd)Not shown in balance sheetCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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