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    • Question : If debentures of Rs. 20,000 are issued at par and are redeemable at a premium of 10%, the premium payable is debited to Option 1: Pre ...
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    Question : If debentures of Rs. 20,000 are issued at par and are redeemable at a premium of 10%, the premium payable is debited to

     

    Option 1: Premium on Redemption of Debentures Account

    Option 2: Debentures Suspense Account

    Option 3: Loss on Issue of Debentures Account

    Option 4: None of the above

    Team Careers360 14th Jan, 2024
    Answer
    Answer (1)
    Team Careers360 24th Jan, 2024

    Correct Answer: Premium on Redemption of Debentures Account


    Solution : Answer = Premium on Redemption of Debentures Account.

    If the debenture is redeemed at a premium at the time of the issue of the debenture, loss on the issue of the debenture account is debited by Rs 2000, and at the time of redemption of the debenture premium on the redemption of the debenture account, is debited by Rs 2,000.
    Hence, the correct option is 1.

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