(iii) A company issued 5,000, 10% Debentures of ₹ 100 each at a discount of 5%. To write off the capital loss, it has to use its profits in a certain order. Chose the correct order in which the profits are used by the company to write off the capital loss:

P Statement of Profit & Loss
Q Capital Reserve
R Securities Premium

(a) P, Q, R
(b) R, P, Q
(c) R, Q, P
(d) Q, P, R

Solution