A bill of exchange for ₹20,000 discounted with bank for ₹19,500. The discount charged is: MCQ with Answer and Explanation

Explanation:
Non-speculative business loss can be set off against any other head (up to ₹3,00,000), leaving ₹2,00,000 to carry forward. Speculation loss can only be set off against speculation profit (₹0 here), so the full ₹2,00,000 carries forward. Total carry forward = ₹2,00,000 + ₹2,00,000 = ₹4,00,000.

Explanation:
Margin of Safety is the excess of *actual* or *budgeted* sales over the break-even sales, not the other way around. S1 is incorrect. S2 correctly states the formula: Actual Sales - Break-Even Sales.

Explanation:
Deferred revenue expenditure like heavy advertisement is written off over a period of benefit, typically 3-5 years.