NCERT Class 12 Accountancy Part 2 Chapter 2: Issue and Redemption of Debentures PDF Made Simple

Chapter 2 of Class 12 Accountancy Part 2 deals with an important topic in corporate accounting – Issue and Redemption of Debentures. Debentures are long-term borrowings by companies and are treated as liabilities. This chapter explains how companies raise funds through debentures, different types of debentures, and the accounting treatment for their issue and redemption.

I’m writing this article because I know many students find this chapter a bit confusing, especially when they encounter terms like ‘debentures issued at premium but redeemable at par’ or ‘redeemed by drawing lots’. But with a clear understanding and some practical examples, this chapter becomes quite manageable. It’s important because debentures are a common way for companies to raise funds without giving up ownership, unlike shares. Questions from this chapter often appear in exams in both theory and journal entry format. That’s why I’ve explained everything here in a simple, practical manner to help you learn faster and with confidence.

Meaning and Features of Debentures

Debentures are a kind of debt instrument issued by companies to borrow money from the public or institutions. These are repayable after a fixed period and carry a fixed interest rate.

Key features:

Fixed interest paid, usually half-yearly or yearly
Debenture holders are creditors, not owners
They don’t have voting rights
Can be secured (backed by assets) or unsecured

Types of Debentures:

Based on Security: Secured and Unsecured
Based on Convertibility: Convertible and Non-convertible
Based on Redemption: Redeemable and Irredeemable

Issue of Debentures

Debentures can be issued in various ways depending on price and terms of redemption.

At Par

Debentures issued and redeemed at face value
Example: Face Value = ₹100, Issued at ₹100, Redeemed at ₹100

At Premium

Debentures issued above face value
Example: Face Value = ₹100, Issued at ₹110

At Discount

Debentures issued below face value
Example: Face Value = ₹100, Issued at ₹95

Combination (Issued at Discount and Redeemable at Premium)

This type involves two kinds of losses: issue loss and redemption loss.
Both are treated as fictitious assets and written off over time.

Example: Issued at ₹95 and redeemable at ₹105

Interest on Debentures

Interest on debentures is calculated on face value and is considered a charge against profit. Even if the company makes a loss, interest must be paid.

Example: 12% Debentures of ₹1,00,000
Interest = ₹12,000 per year

Redemption of Debentures

Redemption means repayment of the amount to debenture holders. It can be done in the following ways:

Lump sum at maturity
In instalments (draw of lots)
By purchase from open market
By conversion into shares or new debentures

Also, companies may need to create a Debenture Redemption Reserve (DRR) as per rules, especially for public issues.

Important Accounting Terms

Term	Meaning
Discount on Issue of Debentures	Treated as a loss and shown as asset
Premium on Redemption	Added liability, shown separately
Loss on Issue of Debentures	Sum of above two losses
DRR (Debenture Redemption Reserve)	Reserve to ensure safety of redemption

Download PDF – NCERT Class 12 Accountancy Part 2 Chapter 2

If you want to revise or practise from the official NCERT book, the PDF version is very useful. It has theory, formats, journal entries, and solved examples from CBSE’s point of view.

NCERT Class 12 Accountancy Part 2 Chapter 2

NCERT Class 12 English Vistas Chapter 6: Memories of Childhood PDF Download & Complete Summary

Memories of Childhood is Chapter 6 in the Class 12 English Vistas textbook by NCERT. What makes this chapter special is that it’s not a single story—it’s made up of two autobiographical excerpts written by two women, Zitkala-Sa and Bama. Both narrate incidents from their early lives that reflect the discrimination they faced because of

Memories of Childhood is Chapter 6 in the Class 12 English Vistas textbook by NCERT. What makes this chapter special is that it’s not a single story—it’s made up of two autobiographical excerpts written by two women, Zitkala-Sa and Bama. Both narrate incidents from their early lives that reflect the discrimination they faced because of their identity. While Zitkala-Sa was a Native American who suffered cultural oppression, Bama grew up as a Dalit in South India, dealing with caste-based discrimination. These two stories are placed together in the chapter to show that such issues exist in many parts of the world.

I decided to write about this chapter because it’s different from the others in the book. It’s not fiction, but a real account of how young children feel when they are treated unfairly just because of their background. When I first read Bama’s story, I couldn’t stop thinking about how common such behaviour still is in many Indian towns. These stories make us more aware and sensitive. As students, we need to understand not just grammar and vocabulary but also social realities. This chapter is an important step towards building that understanding.

What is “Memories of Childhood” About?

This chapter includes two short autobiographical narratives that focus on childhood memories shaped by discrimination and injustice.

Part One: The Cutting of My Long Hair by Zitkala-Sa

This section is written by a Native American woman who was taken to a missionary school where they tried to make her behave like a “white” child. She describes how humiliating it was when her long hair was forcibly cut, which in her culture was a sign of defeat. She feels powerless, angry, and alien in a place that tries to erase her identity.

Part Two: We Too Are Human Beings by Bama

Bama’s story takes place in a village in Tamil Nadu. She is a young Dalit girl who notices how upper-caste people treat her community with disrespect. She sees a man carrying food for his master without touching it, just because of his caste. When she narrates this incident to her brother, he tells her about caste discrimination and advises her to study hard to earn respect and equality.

Main Characters:

Zitkala-Sa – A Native American girl forced to give up her culture at a white-run school
Bama – A young Dalit girl who slowly becomes aware of social injustice

Key Themes:

Discrimination based on race and caste
Childhood trauma and awareness
Loss of identity
Education as a tool for change

Why This Chapter Matters for Students

Real stories: It helps students connect emotionally to real-life problems faced by children
Relevant to society: Topics like caste and cultural identity are still important in today’s India
CBSE exam favourite: Frequently asked in long and value-based questions
Builds empathy: Helps students look beyond textbooks and understand people around them better
Teaches resilience: Both writers turned their pain into power through education and awareness