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

CS Executive · Corporate and Management Accounting · PYQS · June 2023
When debentures are issued at a discount and are redeemable at a premium, which of the following accounts is debited at the time of issue ?
(A) Debentures A/c
(B) Premium on redemption of debentures A/c
(C) Loss on the issue of debentures A/c
(D) Profit and Loss A/c

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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