premium payable on redemption of debentures is accounted at the time of issue of debenture because of --------

Dear student
premium payable on redemption of debentures is accounted at the time of issue of debentures because of prudence or conservatism principle.
As we know, according to conservatism or prudence principle , we considearte all the possible losses to get a better picture of the business. premium payable on redemption is the loss for the firm. therefore we record it at the beginning.(or at the time of issue of debentures)
Regards

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