Question Practice

What is the accounting treatment for the premium on redemption of debentures?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA

Single Answer MCQ

Q-00082579

To be credited to profit and loss account

To be debited to premium account

To be debited to the Debentureholders A/c

To be credited to the Capital Reserve

Video Explanation

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

Q1.

What is the difference between a debenture and a share?

Q2.

Explain the concept of debentures issued as collateral securities.

Q3.

Describe the guidelines provided by SEBI for creating Debenture Redemption Reserve.

Q4.

Can a company purchase its own debentures in the open market? Explain.