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Difference Between Premium on Issue of Debentures and Redemption of Debentures

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CISCE: Class 12

Difference Between Premium on Issue of Debentures and Redemption of Debentures

Basis Premium on Issue of Debentures Premium on Redemption of Debentures
Capital Profit/Loss Capital receipt (as per Sec 52(2), Companies Act, 2013) Capital loss
Nature Reserve Liability
Outflow of Cash No cash outflow Cash outflow at redemption
Balance Sheet Shown under Reserves & Surplus in Shareholders' Funds Shown under Long-term Borrowings in Non-current Liabilities
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