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mediumMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

Choose the correct statement from the options given below:

  1. A
    Amount of Discount on issue of Debentures cannot be debited into Loss on issue of Debentures Account.
  2. B
    Amount of Discount on issue of Debentures can be debited into Loss on issue of Debentures Account.
  3. C
    Amount of Premium on Redemption of Debentures can be debited into Discount on issue of Debentures Account.
  4. D
    Amount of Discount on issue of Debentures can be debited into Premium on Redemption of Debentures Account.

Solution & Step-by-step Explanation

A company can combine the discount allowed on the issue of debentures and the premium payable on its redemption into a single account. This combined total can then be debited to the 'Loss on Issue of Debentures Account'. Therefore, the statement in Option B is correct.

Practice this question

Try it yourself before checking the explanation above.

Choose the correct statement from the options given below:
A
Amount of Discount on issue of Debentures cannot be debited into Loss on issue of Debentures Account.
B
Amount of Discount on issue of Debentures can be debited into Loss on issue of Debentures Account.
C
Amount of Premium on Redemption of Debentures can be debited into Discount on issue of Debentures Account.
D
Amount of Discount on issue of Debentures can be debited into Premium on Redemption of Debentures Account.

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Company AccountsDebenturesAccounting Treatment

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