When debentures are issued at par but redeemable at a premium, which of the account is credited at the time of issue regarding this?

Debentures A/c Premium on redemption A/c Loss on Issue of Debentures A/c None of the above

Premium on redemption A/c

A debenture is said to be issued at a premium when the price charged is more than its nominal value. For example, the issue of Rs 100 debentures for Rs 110, (Rs 10 is being the premium). 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”. The following journal entry will be made: Issue at par and redeemable at premium: (a) Bank A/c Dr. To Debenture Application & Allotment A/c (Receipt of application money) (b) Debenture Application & Allotment A/c Dr. Loss on Issue of Debentures A/c Dr. (with premium on redemption) To Debentures A/c (with nominal value of debenture) To Premium on Redemption (with premium on redemption) of Debenture A/c (Allotment of debentures at par and redeemable at a premium)