Can we use General Reserve to write off the loss on issue of debentures?
Dear student, since the loss on issue of debentures is a capital loss, so it must be first written off against capital profit/reserve or security premium reserve. but if there are no capital profits/reserves or security premium reserve or if there is an insufficiency of capital profits, then it can be write off from against revenue income (like general reserves) so, first of all, write off the loss on issue of debentures from given security premium reserve then use revenue income,( if security premium is insufficient to write off loss) Regards!!