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Premium on redemption is shown under which head until debentures are redeemed? -

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Question

Premium on redemption is shown under which head until debentures are redeemed?

Options

  • Secured loans

  • Unsecured loans

  • Long terms bond

  • None of the above

MCQ

Solution

Secured loans

Explanation:

A premium on redemption is a future liability of a firm. Until the debentures are redeemed, it is a provision that is shown under the heading "Secured Loans."

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Issue of Debentures
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