When debentures are issued at a discount and are redeemable at a premium, which of the following account is debited at the time of issue?

Debentures account

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Premium on redemption of debenture account

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Loss on issue of debenture account

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None of these

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Solution

The correct option is C Loss on issue of debenture account
When debentures are issued at a discount and are redeemable at a premium, loss on issue of debenture account is debited at the time of issue.

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