CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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

A
liability
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
income
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
expense
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
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.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Issued at par and redeemed at a premium
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon