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What is meant by ‘debentures issued at par but redeemable at premium’? - Accounts

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प्रश्न

What is meant by ‘debentures issued at par but redeemable at premium’?

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उत्तर

Debentures are said to be issued at par when they are issued at their face value, and redeemable at a premium means the company will repay more than the face value at the time of redemption. For example, if a ₹100 debenture is issued at ₹100 but redeemed at ₹110, it is issued at par and redeemable at a premium.

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पाठ 7: Company Accounts - Issue of Debentures - SHORT ANSWER QUESTIONS [पृष्ठ ७.५३]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 7 Company Accounts - Issue of Debentures
SHORT ANSWER QUESTIONS | Q 12. | पृष्ठ ७.५३
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