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If a company redeems a debenture for Rs. 110 which was issued at a premium of 10%, what is the accounting entry?

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Single Answer MCQ

Q-00082590

Debentureholders A/c Dr. 110 to Bank A/c Cr. 110

Premium on Redemption A/c Dr. 10 to Debentureholders A/c Cr. 10

Debentureholders A/c Dr. 100 to Cash A/c Cr. 100

Bank A/c Dr. 110 to Debentureholders A/c Cr. 110

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