On the assets side of Balance Sheet
On the debit side of Profit and Loss Account
By way of deduction from the amount of debentures
Answer is Right!
Answer is Wrong!
The correct answer is: C. By way of deduction from the amount of debentures.
A loss on issue of debentures is a loss that a company incurs when it issues debentures at a price lower than their face value. This loss is usually shown as a deduction from the amount of debentures in the company’s balance sheet.
The other options are incorrect because:
- Option A is incorrect because the loss on issue of debentures is not an asset.
- Option B is incorrect because the loss on issue of debentures is not an expense.
- Option D is incorrect because the loss on issue of debentures is not a liability.