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Why discount on issue of share or debenture is shown on asset side of balance sheet?
Wiki User
∙ 12y ago
Because we do not want to charge it to p & l account in the year when it orginated but slowly write it off over some years.
Wiki User
∙ 12y ago
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Why premium on redemption of debenture credit at the time of issue of debenture?
It is capital loss of the company. It comes only in the time when redeem debenture. It is shown when we issue the debenture because it is one of the redeemable condition. it is loss of future but comes in balance sheet as separate account the name of premium redemption account in liability side so, it is carried at the time of issue.
What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
Issued debentures by Mahindra and mahindra?
which year mahinra and mahindra issue debenture
How would you define debenture bonds?
Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.
What is zero interest debenture?
Issue of the zero interest debenture does not carry any explicit rate of interest.The difference between th face value and the purchase price is the return to the investor(lender).
Which companies issue share in discount?
Companies who are in the market from long period of time can issue shares at discount.
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
Effect of bond issue on balance sheet?
Issuing a bond adds a liability (bond to be paid) and cash as an asset. So, overall the company's b/s increases on both sides.
Why is balance an issue in UTP cables?
Why is balance an issue in UTP cables?Type your answer here...
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
Why issue rights issue of shares at a discount?
when shares aree issued at a lower than the face value they are said to be issue of share at discount. the main reason behind issuing share is to attract retailer
What is the difference between fictitious assets and intangible Asset?
Fictitious assets-fictitious assets are deffered revenue expenditure whose benefit is derived over long period of time.Even accumalated losses are also fictitious assets as they are written off over a period of time.All fictitious assets are intangible but all intangible assets are not fictitious.ex goodwill.patents,trademarks,copyrights are intangible but not fictitious.following are the examples of fictitious assets are-preliminary expenses,discount on issue on debenture and shares,underwriting commission,miscellaneous expenditure,profit and loss(dr).
