Discount on issue of debentures is a capital loss, hence statement A (not a capital gain) is correct. Section 52 of the Companies Act allows securities premium to be used to write off such discount, so C is correct. The discount is typically written off systematically over the life of debentures rather than arbitrarily in any year, so B is not fully correct. D (writing off from General Reserve) is not the prescribed practice. Therefore only A and C are correct.
Discount on Issue of Debentures A. Is not a capital gain B. Can be written off in any year C. Can be written off from securities premium Reserve D.…
CUET UG 2022 — Accountancy Company Accounts
2022mcqhard
Discount on Issue of Debentures
A. Is not a capital gain
B. Can be written off in any year
C. Can be written off from securities premium Reserve
D. Can be written off from General Reserve
Choose the correct answer from the options given below:
Official previous-year question
Held on 15 Jul 2022 · Verified 13 Jul 2026.
Options
- A
A and B only
- B
A, B and C only
- C
B and C only
- D
A and C only
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