Discount of issue of debentures written off is added in operating activity but not deducted in financing activity, why?
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not being an operating activity— it is added in operating cashflow
and it is already implied in the issue price(low price pe issue, discount is considered) of bonds hence, not separately deducted from financing cashflow
Discount on issue of debentures entry is-
P/l a/c…DR
To Discount on Issue of Debentures
Since no cash is involved it shall be added to operating and not be deducted from financing activities?
yes you are correct
DICOUNT ON ISSUE OF DEBENTURE IS NOT OUTFLOW OF CASH HENCE IT IS NOT SHOWN IN FINANCING ACTIVITY