Are Bonds Assets or Liabilities? Explained

(a) Debentures of Rs. 50,000 issued for cash to sundry persons at 90% will be shown on the liability side of the balance sheet. Discount on issue Rs. 5,000 will appear on the assets side under the main heading ‘miscellaneous expenditure’. 15,000—will be merged with the cash of the company and final balance of cash will appear in the balance […]