A Discount on Bonds Payable account would appear on the balance sheet as

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A Discount on Bonds Payable account would appear on the balance sheet as a contra-liability (d). This means it is not a separate category of liability but rather a valuation account that is used to adjust the carrying amount of the bonds payable. When bonds are issued at a discount, it means they are sold for less than their face value. The discount on bonds payable represents the difference between the face value of the bonds and the cash received from issuing them.

A Discount on Bonds Payable Account Would Appear on the Balance