Discount on
issue of debenture is
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Discount on issue of debentures is a capital loss and over a period of 3 to 5 years or is charged to “Securities Premium Account” as per the guidelines issued by ICAI. The discount on issue of debentures can be written-off either by debiting it to profit and loss or to securities premium account.
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When debentures are issued by the company at a price less than its nominal value (face value) it is said to be issued at discount. For example, if a debenture of Rs. ... 2,000 is offered to the public at Rs.
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