The Discount on Bonds Payable account is shown on the balance sheet as

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When a company issues bonds at a discount, it means the bonds are sold for less than their face value. The Discount on Bonds Payable account represents the difference between the face value of the bonds and the amount of cash the company received when it issued the bonds. This account is a contra account to Bonds Payable and is subtracted from the Bonds Payable account on the balance sheet to reflect the net carrying amount of the bonds. Over the life of the bonds, the discount is amortized to interest expense, which increases the carrying value of the bonds towards their face value until maturity.

The Discount on Bonds Payable Account Is Shown on the Balance