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Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above?
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Loss on issue of debenture is treated as a) intangible asset b) curren...
Discount on issue of debentures is a capital loss to be written off over a period of time depending upon the terms of issue, before the redemption of such debentures.
Discount on issue of debentures is a capital loss to be written off over a period of time depending upon the terms of issue, before the redemption of such debentures.
The loss is recorded under the head of miscellaneous expenditure in balance sheet on asset side.
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Loss on issue of debenture is treated as a) intangible asset b) curren...
Loss on issue of debenture treatment:
Loss on the issue of debenture is treated as a current liability.
- Explanation:
When a company issues debentures at a discount, it results in a loss for the company. This loss is considered a cost of borrowing and is therefore classified as a current liability on the balance sheet. The loss on issue of debenture reduces the company's profits and represents an obligation that the company must fulfill in the future.
- Implications:
Treating the loss on issue of debenture as a current liability ensures that it is accounted for properly in the company's financial statements. It reflects the company's true financial position by acknowledging the cost incurred in raising funds through debentures at a discount. This treatment also helps investors and stakeholders understand the impact of the loss on the company's profitability and financial health.
In conclusion, the loss on the issue of debenture is recognized as a current liability to accurately represent the financial obligations of the company.
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Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above?
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Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above? 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 Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above?.
Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above? 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 Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Loss on issue of debenture is treated as a) intangible asset b) current liability c) other non current or current asset d ) none of the above?.
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