When debentures are issues at discount the discount should be written off ........

Principles of Accounting & Financial Management Share capital and debentures

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When debentures are issues at discount , the discount should be written off

During the life of the debentures

In the year of the issue of debentures

Within 5 years of the issue of the debentures

None of the options

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Explanation:

Discount on issue of debentures is a loss of capital nature. It will appear on the asset side of balance sheet till it is written off. It is desirable that it is written off as quickly as possible. Discount on issue of debentures, being a loss of capital nature, it can be written off in two ways.