Why discount on issue of debenture is shown as ficitious
assest in Balance sheet ..? same why preliminary expenses
ia also shown as ficitious assets in Balance sheet :?

Answer Posted / sumanta

Discount on issue of debenture is capital loss.and the total amount needs to charge every year into PL a/c to written off it and the remaining amount come under asset side under the head of Miscellaneous expenditure.

Is This Answer Correct ?    2 Yes 2 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Tell me how much statistics knowledge is necessary or required in accounting?

3545


We have purchased some good from our vendor and we asked them to transport the same to some address but they have raised a debit note to us for transportation instead of invoice. Same like we have given some order to manufacture for developing that product they have charged some amount for that also they have raised the debit note. How to account these type of debit notes in tally..?

1364


If a transaction was missed completly how do you find it?

1637


What is the dual aspect concept?

664


what is a difference between public and private accounting?

636






What are mis reports and how do you prepare it?

597


How to Automate requirment mapping in QC?

1513


What is account payee cheque? Expand ctc cheque?

726


can any accountant forward format of daily or monthly mis format for accounts and finance dept!!

1437


Tell me whether the account “cash” will be credited or debited, when a company pays a bill?

650


give 3 reasons why capital is referred to as a special liability

1341


What is the definition of accounting?

622


What and How to compute an unsecured balances?

1727


Define and distinguish between flexible and floating exchange rate system. What kind of exchange rate system does china have?

3319


what is the difference between accounting and bookkeeping?

611