Debenture outstanding is shown in Balance Sheet maid head non-current liabilities subhead long term borrowing in part of equity and liabilities:
As per AS-26 borrowings costs and discount on issue or premium on redemption relating to borrowing could be amortized over loan period.
Unamortised portion of such expenses be shown on the assets side of the balance sheet under the head “Current/Non-Current Assets” depending on whether the amount will be amortised in the next 12 months or there-after.
Discounter loss on issue of debenture is a capital loss. It should be written off as early as possible but within the lifetime of the debentures. It can be written off by debiting to securities premium reserve account or statement of profit or loss.
