When callable bonds are redeemed below carrying value a. gain on redemption of bonds is credited b. loss on redemption of bonds is debited c. retained earnings is credited d. retained earnings is debited

When callable bonds are redeemed below carrying value gain on Redemption of Bonds is credited  

Option A

Explanation:

A callable bond is a bond form that requires the bondholder to maintain the right of redeeming the bonds at some stage it develops before the bond.

Essentially, a callable bond helps the borrower to redeem its obligations at an early stage. If market rates shift in the desired direction to require them to borrow at a more competitive rate, an organization can choose to call its bond.

The competitive interest or discount rate rewards the borrower from a callable bond.

A redeemable bond is another name for a callable bond.