Where is the premium or discount on bonds payable presented on the balance

sheet?
The premium or discount on bonds payable is the difference between the amount
received by the corporation issuing the bonds and the par value or face amount of the
bonds. If the amount received is greater than the par value, the difference is known as
the premium on bonds payable. If the amount received is less than the par value, the
difference is known as the discount on bonds payable.
The premium and discount accounts are viewed as valuation accounts. The
unamortized premium on bonds payable will have a credit balance that increases
the carrying amount (or the book value) of the bonds payable. The unamortized
discount on bonds payable will have a debit balance and that decreases the carrying
amount (or book value) of the bonds payable.
The premium or discount is to be amortized to interest expense over the life of the
bonds. Hence, the balance in the premium or discount account is the unamortized
balance.
Where the Premium or Discount on Bonds Payable is Presented
The premium or the discount on bonds payable that has not yet been amortized to
interest expense will be reported immediately after the par value of the bonds in the
liabilities section of the balance sheet. Generally, if the bonds are not maturing within
one year of the balance sheet date, the amounts will be reported in the long-term or
noncurrent liabilities section of the balance sheet.