Following journal entry is passed in case of:

Debenture Application and Allotment A/c Dr

Loss on Issue of Debenture A/c Dr

To Premium on Redemption of Debentures A/c

To Debentures A/c

According to AS-26 on Intangible Assets:

(A) Internally generated goodwill should not be recognised as an asset

(B) Self-generated goodwill is accounted for in the books and shown as an asset

(C) Intangible assets should be written off as early as possible but not exceeding its estimated life

(D) Purchased goodwill is not recognised as an asset

(E) Can be written off even beyond 10 years depending upon the nature of the asset

Choose the correct answer: