Why Discount issued of shares A/C is written in asset side of balance sheet Discount issued is loss na?

Question

Jatin · Answer

Debit all expenses and losses, Credit all income and gains ! 😄

Kusum · Answer

Yes it is categorised under fictitious assets and then systematically reduced over the years.

Prabhjot · Answer

Loss fictitious asset bhi toh ho skta hai

Kusum · Answer

That's why it is written on the assets side as it has a debit balance

Kusum · Answer

Which reduces the amount payable by the co. (Liability) To the members

Kusum · Answer

It is loss which have incurred after the preparation of p&l acc

Kusum · Answer

It is illogical to treat it as an expense

Archita · Answer

Assets have a debit balance

Kusum · Answer

Yes it is loss.

9 answers