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Premium on Redempti… (Class 12 Accountancy SQP 2025-26, Q14)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 14

From the official CBSE sample question paper for 2025-26, section A, question 14, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q14 · 1 mark · MCQCompetency-basedIssue and Redemption of Debentures

Premium on Redemption of Debentures account will have a balance of________ to be treated as ______ in the first year.

  1. (A)₹ 9,00,000 ; Non-Current Liabilities
  2. (B)₹ 9,00,000 ; Current Liabilities
  3. (C)₹ 6,00,000 ; Non-Current Liabilities
  4. (D)₹ 6,00,00 ; Current Liabilities

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Premium on redemption is a liability payable on redemption.

Hint 2

Redemption is 5 years away: current or non-current?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Premium on redemption = 10% of ₹ 60,00,000 = ₹ 6,00,000.

  2. It is payable at the end of 5 years, so in the first year it is shown under Non-Current Liabilities (Long-term Borrowings). Option (C).

    1 mark

Answer: (C) ₹ 6,00,000 ; Non-Current Liabilities

Where the marks are

  • ₹ 6,00,000 shown as a non-current liability (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Issue and Redemption of Debentures, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.