Accountancy Part AIssue and Redemption of Debentures

When debentures are issued at par and redeemable at a premium, the pr…

When debentures are issued at par and redeemable at a premium, the premium payable on redemption is debited to:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Loss on issue of debentures account

NCERT (2026-27 edition):
Terms of Issue of Debentures – “… Notes: 1. When debentures are redeemable at a premium, the premium payable on redemption is debited to ‘Loss on Issue of Debentures A/c’.”