Question

Assertion (A): As per terms of issue, debentures may be redeemed at par, at premium or at a discount.

Reason (R): Premium on redemption of debentures is shown under Security Premium in the Balance Sheet.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are correct and (R) is the correct reason of (A).

• Both (A) and (R) are correct but (R) is not the correct reason of (A).

• Only (R) is correct.

• Both (A) and (R) are wrong.

Answer 1

Both (A) and (R) are wrong.