Question

Which of the following. column indicated in·the statement given below is to be credited?

"Writing off the loss on issue of debentures"

विकल्प

• Loss on issue of debentures account

• Debentures account

• Own debentures

• None of these

Answer 1

Loss on issue of debentures account

Explanation:

Because the loss or discount on debentures issued is often a capital loss or a fictitious asset, it must be written off during the life of the debentures. So the entry in the journal would be

Statement of profit and loss   Dr.
   To loss on issue of debentures