Question

Premium on redemption of debentures is a:

• A. Personal A/c
• B. Real A/c
• C. Nominal A/c
• D. Suspense A/c

Hint:

Any liability payable to a person/group → Personal A/c. Premium on redemption = liability to debenture holders.

Answer 1

The Correct Option is A

Step 1: Meaning.
Premium on redemption of debentures = extra liability payable by company over and above face value at redemption.
Step 2: Account type.
It is treated as a liability towards debenture holders → hence classified as a Personal Account.
Step 3: Conclude.
Thus, Premium on Redemption of Debentures A/c is a Personal A/c.
Final Answer: \[ \boxed{\text{Personal A/c}} \]