When a company issues shares at a discount, the discount is recorded by debiting:

When shares are issued below their nominal value, the shortfall (discount) is debited to a Discount on Issue of Shares Account, which is treated as a fictitious asset to be written off against profits over time. It cannot be debited to the Share Premium Account (which holds premiums received) nor directly to Profit and Loss in the first instance. Capital Redemption Reserve is created on redemption of preference shares.