When debentures are issued at premium with the term of redeeming them at par. The amount of premium received at the time of issue will be: Option 1: Debited to premium on Redemption of Debenture A/C Option 2: Credited to Premium on Redemption of Debentures A/C Option 3: Debited to Securities Premium Reserve A/C Option 4: Credited to securities premium Reserve A/C

The answer is 'Credited to securities premium Reserve A/C'. View full solution:

CUET Accountancy - When debentures are issued at premium with the term of redeeming them at par. The amount of premium received at the time of issue will be: | PYQs + Solutions

CUET Accountancy 2022 30 Aug Shift 2

Company Accounts

Medium

Debited to premium on Redemption of Debenture A/C

Credited to Premium on Redemption of Debentures A/C

Debited to Securities Premium Reserve A/C

Credited to securities premium Reserve A/C

✅ Correct Option: 4