XYZ & Co. incurred a liability by giving discount on issue of debentures. Such expenditure shall be considered as

Question

Quizplus · Accepted Answer

Deferred revenue expenditure is the correct classification for the costs incurred by XYZ & Co. in giving a discount on the issue of debentures. This is because such costs are not for the day-to-day operations of the business but are spread over several years, benefiting the company over a period of time rather than immediately.

XYZ & Co Incurred a Liability by Giving Discount on Issue of Issue