Practicing Success
Where is the amount of premium received on the issuance of debentures typically credited? |
Profit and Loss Account Capital Reserve Account Securities Premium Reserve Account Debenture Redemption Reserve Account |
Securities Premium Reserve Account |
When a company issues debentures at a premium, the amount received as the premium is typically credited to the "Securities Premium Reserve Account." This accounting treatment ensures that the excess amount received over the nominal value of the debentures is properly accounted for and reflects the company's financial position accurately. |