Question
Accountancy Question on Debentures
When debentures are issued at premium with the term of redeeming them at par. The amount of premium received at the time of issue will be:
A
Debited to premium on Redemption of Debenture A/C
B
Credited to Premium on Redemption of Debentures A/C
C
Debited to Securities Premium Reserve A/C
D
Credited to securities premium Reserve A/C
Answer
Credited to securities premium Reserve A/C
Explanation
Solution
The correct option is (D): Credited to securities premium Reserve A/C