If debentures are issued by a company at a discount, it is prudent to write-off the discount:

CS Executive · Corporate and Management Accounting · PYQS · December 2023
If debentures are issued by a company at a discount, it is prudent to write-off the discount:
(A) In the year itself
(B) In five equal annual installments
(C) During the life time of the debentures
(D) During the period allowed by the trustees of debenture-holders

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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