0
Why premium on redemption of debenture credit at the time of issue of debenture?
Wiki User
∙ 11y ago
It is capital loss of the company. It comes only in the time when redeem debenture. It is shown when we issue the debenture because it is one of the redeemable condition. it is loss of future but comes in balance sheet as separate account the name of premium redemption account in liability side so, it is carried at the time of issue.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
How would you define debenture bonds?
Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.
What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
Issued debentures by Mahindra and mahindra?
which year mahinra and mahindra issue debenture
Can revaluation reserve be use for bonus issue?
Yes it can use any of the capital reserves for the purpose, like Share Premium Account, Capital Redemption Reserve & Revaluation Reserve...
What is Issue of shares at premium?
Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...
What is zero interest debenture?
Issue of the zero interest debenture does not carry any explicit rate of interest.The difference between th face value and the purchase price is the return to the investor(lender).
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
Can a private limited company issue its preference share on premium?
Yes. Ref. section 78 of the companies act, 1956 in which word "Securities" has been used which includes shares,debenture,bonds and ther marketable securities as used in sec 2-h of Securities Contracts ACt. Other views are solicited.
What is the effect of a bonus issue on the share capital and share premium account?
Bonus shares increases the share capital while reduces the share premium account because amount of share premium is used to issue bonus shares.
What is a credit issue gold bullion bar?
It's a Credit Suisse Bar not a Credit issue gold bar. They are from the Bank of Switzerland.
What is a value bond?
a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.
