Premium example sentences

The new shares or debentures may be issued at par, at a discount or at a premium.Section 78 of The Companies Act, 1956 also permits the utilisation of 'Securities Premium Account' and other capital profits for writing off the discount/loss on issue of debentures.The amount of premium is credited to Securities Premium account and is shown on the liabilities side of the balance sheet under the head “Reserves and Surpluses”.Debentures can be redeemed either at par or at a premium.It may be noted that when debentures are issued at a discount and are redeemable at a premium, the amount of discount issue is also debited to 'Loss on Issue of Debentures'.The amount received as premium is credited to 'securities premium account' whereas amount of discount allowed is debited to “loss/discount on issue” and is written-off over the years.Loss on issue of debenture account is a capital loss and it is to be written-off gradually against the profit and loss account or securities premium account.It may be noted that when debentures are issued at a discount and are redeemable at a premium, the amount of discount issue is also debited to 'Loss on Issue of Debentures'.It may be noted that when debentures are issued at a discount and are redeemable at a premium, the amount of discount issue is also debited to 'Loss on Issue of Debentures'.Loss on issue of debenture account is a capital loss and it is to be written-off gradually against the profit and loss account or securities premium account.The new shares or debentures may be issued at par, at a discount or at a premium.Section 78 of The Companies Act, 1956 also permits the utilisation of 'Securities Premium Account' and other capital profits for writing off the discount/loss on issue of debentures.Premium on redemption is a liability of a company payable in future.Loss on issue of debenture account is a capital loss and it is to be written-off gradually against the profit and loss account or securities premium account.For example, telephone bills, insurance premium, rent, taxes, etc.