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Home Questions 2AGUFABZUJ
Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

Premium on issue of debentures is shown on...............

Options:

Asset Side of balance sheet

Liability Side of balance sheet

Not Shown in Balance Sheet

Shown in Profit and Loss A/c

Correct Answer:

Liability Side of balance sheet

Explanation:

The correct answer is option 2- Liability Side of balance sheet.

The amount of premium is credited to Securities Premium Reserve account and is shown on the liabilities side of the balance sheet under the head “Reserves and Surpluses”.

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