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Home/Practice questions/Accountancy

AccountancyIssue and Redemption of Debentures

Premium on redemption of debentures is which type of account?

Premium on redemption of debentures is which type of account?

Answer & explanation+

Correct answer: option 3

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.

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