Discount on issue of shares by a company should be shown on the:

The correct answer is: D. Liability side of the Balance Sheet

Discount on issue of shares is a financial liability that arises when a company issues shares at a price below their face value. This discount is recorded as a liability on the balance sheet and is amortized over the life of the shares.

The other options are incorrect because:

• Option A: The debit side of the Profit and Loss account is used to record expenses. Discount on issue of shares is not an expense, so it is not recorded on this side of the account.
• Option B: The asset side of the Balance Sheet is used to record assets. Discount on issue of shares is not an asset, so it is not recorded on this side of the account.
• Option C: The credit side of the Profit and Loss account is used to record revenues. Discount on issue of shares is not a revenue, so it is not recorded on this side of the account.

I hope this helps! Let me know if you have any other questions.