When the debentures are issued at a discount, the discount must be written off a. After the debentures have been redeemed b. Within 5 years of the issue of debentures c. During the life of the debentures d.None of the above
The amount of loss or discount on issue of debentures has to be not be written-off during the year of its issue since the benefit of the debentures would accumulate to the enterprise till their restitution or redemption. The loss or discount, hence, considered as a capital loss
