Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Premium on redemption of debentures is which type of account?
Options:
Current Account
Nominal Account
Personal Account
Real Account
Correct Answer:
Personal Account
Explanation:
Premium on redemption of debentures is shown under liabilities side of the Balance Sheet, so, it is a personal account. This premium is payable by the company on redemption of the debentures to the debenture-holders.