31 August 2012
as per revised schedule-vi,under which head of balance sheet the following items will be shown and why..? 1.premium on redemption of debenture? 2.loss on issue of debenture? 3.discount on issue of debenture?
22 July 2025
Good question! Here’s how these items are shown in the Balance Sheet under Revised Schedule VI:
Premium on Redemption of Debenture Where: Shown under “Other Long-term Liabilities” (under Non-current Liabilities) Why: This is a liability to be paid in future at the time of redemption, so it’s treated as a long-term liability. Loss on Issue of Debenture Where: Shown as a “Preliminary Expense” or “Miscellaneous Expenditure” under “Non-current Assets” (Intangible assets or deferred revenue expenditure) and amortized over a period. Why: Loss on issue is treated as a deferred expense that benefits future periods, so it’s capitalized and written off gradually. Discount on Issue of Debenture Where: Shown as a “Deferred Revenue Expenditure” or “Miscellaneous Expenditure” under Non-current Assets and amortized over the tenure of the debenture. Why: Discount on issue is treated as an expense spread over the life of debentures, so it is capitalized and amortized.
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