When debentures are issued at par and redeemed at premium then premium on redemption of debentures is considered as a/an .

liability

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

income

No worries! We‘ve got your back. Try BYJU‘S free classes today!

expense

No worries! We‘ve got your back. Try BYJU‘S free classes today!

asset

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A liability
When debentures are issued at par and redeemed at premium then premium on redemption of debentures is considered as a liability to be written off over the life of debentures.

Suggest Corrections

Similar questions

When debentures are issued at premium & redeemed at premium, the premium on redemption of debentures account is ___

If debentures are to be redeemed at premium, the premium on redemption of debentures account shall be ___

When debentures are issued at premium & redeemed at premium, the loss on issue of debentures account is debited with ___

If debentures are redeemed at premium, the premium on redemption of debentures account shall be credited while ___shall be debited.