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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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