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.