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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011 Frends

Pls explain nature of premium on redemption of Debenture .

As per Me

its Personal Nature B,coz

Debenture Dr.
Prem.on redem of Deb Dr.

To Debenture Holder A/c

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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08 December 2011 Premium paid on redemption of debenture is an expense that a company has to incur because of an agreement in advance with the debenture holders and as such is Nominal in nature and according to the accounting rules Debit all Expense & Losses therefore Premium paid on redemption is debited.

CA. Richi Saxena

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