The Total solution for NCERT class 6-12
Debentures which are redeemed for a price which is more than its par value or nominal value is known as debentures redeemed at premium. The difference between the par value (face value) and the price at which it is redeemed is known as capital loss and this will be written off till debentures are redeemed. It is shown on the liabilities part of Balance Sheet till debentures are redeemed. The accounting treatment can be represented as: