Question

Short Answer Question

Name the head under which ‘discount on issue of debentures’ appears in the Balance Sheet of a company.

Answer 1

Discount on Issue of Debentures is regarded as a capital loss. As per the Revised Schedule VI of the Companies Act, Discount on Issue of Debentures is shown in the Notes to Accounts:

1. With the amount that is to be written off within 12 months from the date of Balance Sheet - Shown under Other Current Assets

2. With the amount that is to be written off after 12 months from the date of Balance Sheet - Shown underOther Non-Current Assets