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Premium on redemption is a liability for a company payable in the future. It is a provision and is shown under the head non-current liabilities under the sub-head __________ until debentures are redeemed.

Solution

✅ Correct Option: 4

NCERT states that premium on redemption of debentures is a liability payable by the company in the future. Until the debentures are redeemed, it is shown under Non-current Liabilities under the sub-head "Long-term Borrowings".

Therefore, Option 4, Long-term Borrowing, is correct.

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