When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination
(A) Discount on issue of debentures account is credited
(B) Loss on issue of debentures account is debited
(C) Security premium account is credited
(D) Premium on redemption of debentures account is credited
Choose the correct answer from the options given below:

Correct option is D

When debentures are issued at a premium:
(C) The Securities Premium account is credited.
(D) When they are redeemed at a premium, the Premium on Redemption of Debentures account is credited.
(B) The Loss on Issue of Debentures account is debited to account for the amount of loss bearing while issuing and redeeming at a premium.