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Premium payable on redemption of debentures is debited to
ASecurities Premium Reserve
BLoss on Issue of Debentures A/c
CDebenture Interest A/c
DCapital Reserve Account
Answer & Solution
Correct answer: B. Loss on Issue of Debentures A/c
Premium on redemption is a loss at issue, so it is debited to Loss on Issue of Debentures Account.
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