When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination-

(A) Discount on issue of debentures account is credited

(B) Loss on issue of debentures account is debited

(C) Security premium account is credited

(D) Premium on redemption of debentures account is credited

Choose the correct answer from the options given below:

(B), (C), and (D) only

The correct answer is option 4- (B), (C), and (D) only.

Journal entry for the debentures Issued at a premium and redeemable at premium-

1) Bank A/c Dr.
        To Debenture Application & Allotment A/c
(Receipt of application money)

2) 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 Securities Premium Reserve A/c (with premium on issue)
               To Premium on Redemption of  Debentures A/c (with premium on redemption)

Thus from the above journal entries we can see that  B, C, D are the right statements which are done, when the debentures are issued at premium and redeemed at premium. So, the correct answer is option 4.