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TRANSCRIPT
Patna Region
Three days’ Workshop for PGT (Commerce)(2nd July 2015- 4th July 2015)
Venue: KV Kankarbagh
Patron: Shri M. S. Chauhan, Deputy Commissioner, KVS RO, Patna
Director: R. Radhakrishnan, Assistant Commissioner
Associate Director:
Sh. Karan Singh, Principal, KV Mokamaghat
Sh. K. B. Singh, Principal, KV Siwan
Kendriya Vidyalaya Sanagthan
Index Objective of the workshop
List of Participants
Schedule
Day wise Report
Discussion of 2015 Board Result:
o Accountancy
o Business Studies
Target Result
Feedback from the Teachers
Action Plan
o Slow Learner
o Gifted Children
Question Bank- Slow Learner & Gifted Children
Sample Question
o Remembering
o Understanding
o Application
o High Order
o Evaluation
Model Question Paper and Blue Print
o XII Accounts
o XII Business Studies
Objectives of the workshop
1. To increase the teachers competency in the subject and their overall confidence level.
2. To find out the different areas and weak areas and draw action plan to overcome the difficulties.
3. To know the short falls in target, based on error analysis, result feedback analysis and the find out the
reasons for underperformance/ not achieving the target and discuss and draw action plan for
achieving target.
4. To familiarize the teachers with changes in question pattern and enhance their question solving
technique and skill.
5. To provide platform to teachers share their success story and their experience.
6. Preparing useful material to be used by students and teachers for improvement.
7. To make the teachers aware of the new changes in question framing pattern, technique &
methodology in teaching learning process.
8. To make the teachers aware of innovative practices, projects, activities.
List of Participants
Sr No. Name Name of KV Mobile No. E-Mail ID
1 Amod kumar Danapur Cantt (S/S) 7070810607 [email protected]
2 Triveni Prasad Gupta K.V. Garhara 9386582762 triveni [email protected]
3 Brahmadeo PrasadK.V. H.FC NO- 01 BARAURI 9939091052
4 Ranu Choudhary K.V Muzaffarpur F/S 8252934848 [email protected]
5 D.P Tewary K.V Kishanjang 9472670371 [email protected]
6 Amit Kumar K.V. Jamalpur 9097123535 [email protected]
7 Kamlesh Kumar K.V. Purnea 9889309135 kamlesh [email protected]
8 Pankaj Verma K.V.Katihar 9504156288 [email protected]
9 Dr. S.P. Srivastava K.V.Siwan 9709458830 [email protected]
10 Usha singh K.V. Khagual 9905540780 [email protected]
11 Akhilesh Kumar K.V.Mokama 957080645
12 Anita Negi K.V.No.1 Gaya 9128273300
13 Sanjeev KR. Nirala K.V.No.2 Gaya 9955575222 [email protected]
14 Poonam K.V,AFS,Bihta 9504437133 [email protected]
15 Usha Kiran K.V(fs) Kankarbagh 9431049352 [email protected]
16 Shweta Bansal K.V(ss) Kankarbagh9572058575/8447764476 [email protected]
17 Preksha Mehta K.V Bailey Road(SS)8651214381
/09891390122 [email protected]
18 Swati Singh K.V Bailey Road(FS) 9570900584 [email protected]
19 Manoj Kumar K.V Rajgir 9430803171 [email protected]
20 Rajesh Kumar K.V.Saharsa 9162289785 [email protected]
Schedule
Day I 02.07.2015
9:00 Hrs Reporting and inauguration
9:30 Hrs Discussion on, XII ResultFeedback from the participantError AnalysisCauses for poor performance and action planDifficult Areas
11:00 Action plan for improving result- study technique and Exam
14:00 Formation of Groups and assigning task to groupsGroup Work
Day II 03.07.2015
9:00 Hrs Review of previous day work
11:00 Hrs Identifying slow learners – remedial measureFinding Teaching Gap and Learning Gap
14:00 Hrs Group work resumes
16:30 Hrs Status/Stock taking of the work
Day III 04.07.2015
9:00 Hrs Review of previous day work
11:00 Hrs Methodology improvement, project and activitiesCreating interest in the subject
14:00 Hrs Group Leader Presentation /task to be done.
16:30 Hrs Relieving of participant
GROUPS
Under Supervision of Principal, KV Mokamaghat Under Supervision of Principal, KV Siwan
Group D Group A
KV No.1, BaruaniKv DanapurKV Garhara
AFS BihtaGaya No. 1, Gaya No. 2
Group E Group B
KV JamalpurKV KhagaulKV MokamaghatKV Purnea
KV KahalgaonKV KatiharKV Kishanganj
Group F Group C
KV Kankarbagh IKV Kankarbagh IIKV Bailey Road IKV Bailey Raod II
KV Siwan KV Muzaffarpur KV NalandaKV Sahrasa
Reports
Day 1(02.07.2015)
The first day of the workshop started by lighting of lamp by respected Shree M. L. Mishra, Assistant
Commissioner, Respected V. Rajagopal, Assistant Commissioner, Respected R. Radhakrishnan,
Assistant Commissioner Kendriya Vidyalaya Sangathan, Regional Office, Patna. Shri Sudhakar Singh,
Venue Principal, Karan Singh, Principal, Mokamaghat and Sh. K.B. Singh, Principal, KV Siwan.
Sh. M. L. Mishra, AC and Shri V. Rajagopal AC, KVS RO, Patna, addressed the participant and
encouraged them to get maximum advantage from this workshop under the able guidance of Shri R.
RadhaKrishnan, Course Director. Shri Karan Singh, Principal, Mokamaghat and Shri Karam Bir Singh,
Principal, Siwan. Total Twenty two participants participated in the workshop w.e.f. 02.07.2015 to
04.07.2015.
Shri R. Radhakrishnan Assistant Commissioner and Course Director welcomed and explained
the objective and utility of the workshop to the participant, and solicited the co-operation from the
participants for finding the difficulties faced by them in the Teaching & Learning process for improving
the Board result
Shri Karan Singh, Principal, Mokamaghat analyses and discussed the feedback given by the
teacher about the Board Result for session 2014-15 for Business Studies. He explained and clarified
the doubt with regard to the difficulties faced by the teachers in the teaching learning Business
Studies, he also outlined action plan for the session 2015-16 in Business Studies and a specific steps to
be undertaken especially for slow learners.
In the next session Sh. K. B. Singh, Principal, KV Siwan discussed and analyzed the result of
Accountancy for the session 2014-15 and list out the necessary steps to improve the result in the
subject of Accountancy. The afternoon session started with administering a small test for participant
in Accountancy of which lasted for 2 hours with the objective to find out themselves the confidence
level and content knowledge of accountancy. Afterward the participant divided in the groups in the
following composition.
DAY 2 (03.04.2015)The 2nd day of the workshop started with Course Director Shri R. Radhakrishnan Assistance Commissioner of the performance of the participant and & reserve.
Many teachers did not pay attention on the basic areas; the performance of the teachers was not encouraging on the theory part.
i. It is found that XI theory part found to be neglectedii. The teachers need to pay more attention towards BRS depreciation receives.iii. The performance of the teacher found to be satisfactory in XII accounts. iv. The question asked from class XI accountancy fundamental and XII accountancy covering all topics
discussed using visualizer. Question wise correct answer with correct steps and the mistake committed was discussed for improvement.
v. In general, contractual teachers need to learn to be more confident and to do the work satisfactorily. They shoulduse KVS service to improve their capability and the performance of the children.
The question ---answer session was conducted by Principal KV Siwan the discussion was very useful and interactive.
Latest question paper design was discussed in the subject of Accountancy and business studies by Shri Karan Singh , principal, KV Mokamaghat, the teachers were divided in the groups their groups and were asked to frame the question on various domains—like remembering understanding.
Application higher order and inter disciplinary and valve based question, the head of group the each group presented these sample question before other groups, the session found to be very effective and productive.
Shri Karan Singh Principal KV Mokamaghat explained the importance of theory part in XI Accounts explained the framing of the question paper in class un class XI he also in the subject of accounts &Business .
The last session of the day started with group work for preparation of question for slow learner, bright student including HOTS, Application and Value based question in the subject of accountancy and business studies.
REPORT – 3 DAY (04.07.2015)Third day of the workshop started with Course Director Shri R. Radhakrishnan, Assistant Commissioner delivering a lecture on “ how to improve the result” and explain various teaching methods and teaching including orientation of attitude of students, and also touched upon the following points:
Sharing latest business news with the students Use of NCERT books Learning by doing Field visit/survey Commerce competition Quiz competition
Shri Karan Singh, Associate Director & Principal KV Mokamaghat took a session on theory base of Accounting and explained the importance of theory base in accountancy. He explained that every child learning Accountancy should have source base in theory so that he/she can do good accounting. In continuation Shri Karan Singh also discussed the financial market with the participant.
In the next session Shri K. B. Singh, Principal K V Siwan, discussed about preparation of study material for class XI & XII for the session 2015-16 and allocated the task to different group with regard to preparation of study material of ACCOUNTANCY & BUSINESS STUDIES.
In the afternoon session the teachers were engaged in group work for preparation of question bank for slow learners and for bright students.
At 3:00 PM, in valedictory, Sh. M. L. Mishra, Assistant Commissioner and Shri V. Rajagopal, Assistant Commissioner distributed the Certificate for participation in Three Days’ Workshop. The Participant shared their experience of the workshop.
C.B.S.E. BOARD EXAM. 2015Accountancy
Sl. No.
Name of KVTotal App. Total Passed Pass Percentage P.I.
B G T B G T B G T B G T
1 Barauni (HFC) 9 16 25 9 15 24 100.00 93.75 96.00 37.5
038.2
838.0
02 Barauni (IOC) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
3 Bihta (AFS) 10 14 24 9 13 22 90.00 92.86 91.67 26.25
45.54
37.50
4 Danapur Cantt. (FS) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
5 Danapur Cantt. (SS) 29 44 73 26 42 68 89.66 95.45 93.15 40.0
944.0
342.4
76 Darbhanga No.1 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
7 Garhara 10 11 21 8 10 18 80.00 90.91 85.71 35.00
44.32
39.88
8 Gaya No.1 20 18 38 18 16 34 90.00 88.89 89.47 38.75
36.11
37.50
9 Gaya No.2 18 16 34 18 16 34 100.00
100.00
100.00
51.39
61.72
56.25
10 Jamalpur 11 20 31 10 15 25 90.91 75.00 80.65 30.68
28.13
29.03
11 Jawaharnagar 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A12 Kahalgaon 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
13 Katihar 14 20 34 13 20 33 92.86 100.00 97.06 46.4
355.0
051.4
714 Khagaria 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
15 Khagaul 7 13 20 7 11 18 100.00 84.62 90.00 30.3
633.6
532.5
0
16 Kishanganj 7 10 17 7 10 17 100.00
100.00
100.00
64.29
70.00
67.65
17 Mokamaghat 9 8 17 8 6 14 88.89 75.00 82.35 30.56
35.94
33.09
18 Muzaffarpur (FS) 20 25 45 20 24 44 100.00 96.00 97.78 56.2
545.5
050.2
819 Muzaffarpur (SS) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
20 Nalanda (O.F) 3 1 4 3 1 4 100.00
100.00
100.00
20.83
50.00
28.13
21Patna No.1(Kankarbagh) (FS)
31 7 38 28 7 35 90.32 100.00 92.11 41.9
460.7
145.3
9
22Patna No.1(Kankarbagh) (SS)
12 24 36 9 23 32 75.00 95.83 88.89 29.17
43.75
38.89
23Patna No.2 (Bailey Road) (FS)
10 32 42 9 29 38 90.00 90.63 90.48 25.00
41.02
37.20
24Patna No.2 (Bailey Road) (SS)
14 19 33 14 19 33 100.00
100.00
100.00
53.57
60.53
57.58
25 Purnea 12 1 13 12 1 13 100.00
100.00
100.00
52.08
75.00
53.85
26 Pusa (RAU) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A27 Samastipur 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
28 Siwan 8 8 16 6 7 13 75.00 87.50 81.25 21.88
15.63
18.75
29 Sonpur 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
TOTAL 254
307
561
234
285
519 92.13 92.83 92.51 40.8
544.7
142.9
6
C.B.S.E. BOARD EXAM. 2015Business Studies
Sl. No.
Name of KVTotal App. Total Passed Pass Percentage P.I.
B G T B G T B G T B G T
1 Barauni (HFC) 9 16 25 9 16 25 100.00
100.00
100.00
50.00
52.34 51.50
2 Barauni (IOC) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
3 Bihta (AFS) 10 14 24 10 14 24 100.00
100.00
100.00
53.75
76.79 67.19
4 Danapur Cantt. (FS) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
5 Danapur Cantt. (SS) 28 44 72 26 40 66 92.86 90.91 91.67 44.6
449.1
5 47.40
6 Darbhanga No.1 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
7 Garhara 10 11 21 10 11 21 100.00
100.00
100.00
60.00
60.23 60.12
8 Gaya No.1 20 18 38 15 16 31 75.00 88.89 81.58 34.38
47.22 40.46
9 Gaya No.2 18 16 34 18 16 34 100.00
100.00
100.00
63.89
71.09 67.28
10 Jamalpur 11 20 31 11 18 29 100.00 90.00 93.55 46.5
956.2
5 52.82
11 Jawaharnagar 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A12 Kahalgaon 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
13 Katihar 14 20 34 14 19 33 100.00 95.00 97.06 65.1
868.7
5 67.28
14 Khagaria 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
15 Khagaul 7 13 20 7 13 20 100.00
100.00
100.00
39.29
45.19 43.13
16 Kishanganj 7 10 17 7 10 17 100.00
100.00
100.00
75.00
85.00 80.88
17 Mokamaghat 9 8 17 7 7 14 77.78 87.50 82.35 33.33
32.81 33.09
18 Muzaffarpur (FS) 20 25 45 20 24 44 100.00 96.00 97.78 57.5
045.5
0 50.83
19 Muzaffarpur (SS) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
20 Nalanda (O.F) 3 1 4 2 1 3 66.67 100.00 75.00 12.5
050.0
0 21.88
21Patna No.1(Kankarbagh) (FS)
31 7 38 27 7 34 87.10 100.00 89.47 38.3
173.2
1 44.74
22Patna No.1(Kankarbagh) (SS)
12 24 36 11 22 33 91.67 91.67 91.67 38.54
42.19 40.97
23Patna No.2 (Bailey Road) (FS)
10 32 42 5 27 32 50.00 84.38 76.19 16.25
35.55 30.95
24Patna No.2 (Bailey Road) (SS)
14 19 33 12 19 31 85.71 100.00 93.94 55.3
672.3
7 65.15
25 Purnea 12 1 13 12 1 13 100.00
100.00
100.00
66.67
75.00 67.31
26 Pusa (RAU) 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A27 Samastipur 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
28 Siwan 7 8 15 7 7 14 100.00 87.50 93.33 46.4
340.6
3 43.33
29 Sonpur 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A
TOTAL 252
307
559
230
288
518 91.27 93.81 92.67 48.0
253.9
1 51.25
Sl. No.
Name of KVPass Percentage PI
Accountancy B. St Accountancy B. St
2015 2016 2015 2016 2015 2016 2015 2016
1 Barauni (HFC) 100.00 100.00 93.75 100.00 38.0060.00
51.50 60.00
2 Bihta (AFS) 90.00 100.00 92.86 100.00 37.5060.00
67.19 72.19
3 Danapur Cantt. (SS) 89.66 100.00 95.45 100.00 42.4760.00
47.40 60.00
4 Garhara 80.00 100.00 90.91 100.00 39.8860.00
60.12 65.12
5 Gaya No.1 90.00 100.00 88.89 100.00 37.5060.00
40.46 60.00
6 Gaya No.2 100.00 100.00 100.00 100.00 56.2561.25
67.28 72.28
7 Jamalpur 90.91 100.00 75.00 100.00 29.0360.00
52.82 60.00
8 Katihar 92.86 100.00 100.00 100.00 51.4760.00
67.28 72.28
9 Khagaul 100.00 100.00 84.62 100.00 32.5060.00
43.13 60.00
10 Kishanganj 100.00 100.00 100.00 100.00 67.6572.65
80.88 85.88
11 Mokamaghat 88.89 100.00 75.00 100.00 33.0960.00
33.09 60.00
12 Muzaffarpur (FS) 100.00 100.00 96.00 100.00 50.2860.00
50.83 60.00
13 Nalanda (O.F) 100.00 100.00 100.00 100.00 28.13 60.00 21.88 60.0
0
14 Patna No.1(Kankarbagh) (FS) 90.32 100.00 100.00 100.00 45.3960.00
44.74 60.00
15 Patna No.1(Kankarbagh) (SS) 75.00 100.00 95.83 100.00 38.8960.00
40.97 60.00
16 Patna No.2 (Bailey Road) (FS) 90.00 100.00 90.63 100.00 37.2060.00
30.95 60.00
17 Patna No.2 (Bailey Road) (SS) 100.00 100.00 100.00 100.00 57.5862.58
65.15 70.15
18 Purnea 100.00 100.00 100.00 100.00 53.8560.00
67.31 72.31
19 Siwan 75.00 100.00 87.50 100.00 18.7560.00
43.33 60.00
Target Result
Action Plan(A). Action Plan for Business Studies (General)
1. Timely and meaningful completion of syllabus2. Addressing the language problem as per the need of the child.3. Regular test and evaluation.4. Explaining the latest Board paper pattern to the student.5. Ensuring regular attendance6. Maintaining regular and direct contact with the parent for reporting and discussing the progress of the
children7. Studying the children and his nature, behavior and learning pattern of every child8. Following individualistic child centred approach; Treating every child as an individual and independent
entity and treating the child accordingly.9. More and regular exam practices.10. Associating the slow learners with bright students. (Peer Group Learning)11. Motivating the children.12. Activity based learning (Project, Role Play)13. E-classes14. Target
a. Quantity – 100%b. Quality – Above 60% PI
15. Peer group interaction be given importance16. Seating arrangement in productive manner in the class17. Remedial classes for slow learner
(B)Separate Action Plan for slow learners
1. Stick to minimum level of learning.2. Inviting parents and seeking their co-operation.3. Conducting regular micro-test and evaluating the test and its follow-up (Small Test).4. Maximum revision and drilling of selected units.
(C)Plan of action for bright Students
1. Identification of bright students.2. Exposure to higher difficulty level and difficult portion. 3. More Drilling of difficult Portion4. Continuous motivation for achieving higher goals in life.
Reason for Poor Performance
Business Studies (Based on Feedback received from the participant)
1. Changed pattern of the question paper2. Application based question and analysis and Inter Disciplinary question3. Weak students /slow learner4. Lacking of communication skill
Areas require Discussion and attention
1. HOT question and new question paper.2. Strength of the class.3. Discipline of the school4. BRS5. Value based and multi-disciplinary question6. Financial market and Debenture
Question Bank: Slow Learner
Business Studies NATURE AND SIGNIFICANT OF MANAGEMENT
&
PRINCIPLES OF MANAGEMENT
(1 marks each)
1. Write down the name of different level of management.2. Is coordination a separate function of management?3. Identify the nature of management when it is said to be a systematized body of knowledge that explain
certain general truth.4. Name the level of management. At which the managers are responsible for implementing and
controlling the plans and strategies of the organization.5. A principle of management states that the work should be divided into small tasks. Name the principle.6. Lack of arrangement of place for things and people creates difficulty in achieving objectives of the
organization on time. Which principle of management violated in given statement?7. Name the technique which determines a standard time required to do a well-defined job.
( 3 marks each)
8. State any three objectives of management.9. Give any three characteristics of management.10. Which level act as a link between the two other level of management? Explain with an example.11. What do you mean by ‘coordination ‘? Write any three functions of coordination.12. Is management an art? Give any three reasons in support of your answer.13. Write any four objectives of management.14. Write any three significance of management.15. Distinguish between ‘Motion Study’ and ‘Time Study’ on the basis of (a) meaning, and (b) purpose.
(5-6 marks each)
1. What do you mean by Scientific Management? Explain in brief any five principles of Scientific Management.
2. Define management. Write any five importance of management.3. What is scalar chain? Explain briefly the utility of ‘Gang Plank’. 4. Explain following principles of management given by Fayol’s: (a) Unity of command (b) Division of work
(c) Unity of direction. 5. Write any three difference between ‘time study’ and ‘motion study’
Business Environments
VERY SHORT ANSWER TYPE QUESTIONS (1 MARK)
1. What is Business Environment?
2. How can the firms cope up with changing technological environment?
3. What do you mean by Globalisation?
4. Which policy of Indian Government has moved India towards globalisation?
5. What do you mean by disinvestment?
6. Give one measure taken by Indian Government to introduce liberalisation.
7. What do you mean by first mover advantage?
8. What are Values?
9. Which of the sector was given importance after independence?
11. What was the responsibility given to private sector afterindependence?
12. What do you mean by Liberalisation?
13. Which two factors are included in Technological Environment?
14. What is meant by opportunities?
15. What do you mean by Innovation?
16. Name the economic reforms introduced to free Indian business from unnecessary controls and
restrictions.
SHORT ANSWER TYPE QUESTIONS (3 OR 4 MARKS)
1. Define Business Environment. State two important concerns of business environment.
2. Explain the specific and general forces of business environment?
3. Enumerate the benefits of understanding business environment.
4. What are the main dimensions of business environment? What does environment consist of?
5. Explain the role of political environment in shaping the business?
6. Explain the concept of technological environment.
7. What do you understand by legal environment? Give two examples which protect consumers'
interests.
8. List the various changes initiated by the Government of India since 1991.
9. List some important factors that influence the working of business enterprises?
LONG ANSWER TYPE QUESTIONS (5 OR 6 MARKS)
1. What do you mean by business environment? Explain the key components of business
environment.
2. What do you understand by economic environment? List the main aspects of economic
environment.
3. Social environment of business is important for a business enterprise". Explain ?
4. Enumerate negative impacts of liberalization and globalisation.
5. Enumerate any ten Positive impacts of liberalization and globalization.
6. Explain any five negative impacts of liberalization and globalization.
PlanningVERY SHORT ANSWER TYPE QUESTIONS (1 MARK)
1. What is planning?
2. Which function of management bridges the gap between where we are and where we want to go
to?
3. Name the primary function of management.
4. One of the functions of Management is considered as base' for all other functions. Name that
function.
5. What is single use plan?
6. Name the feature of planning which says planning is a forward looking function?
7. How does planning create rigidity?
8. What is the basis for creating future course of action?
9. Give one limitation of planning function.
10. Which is the most crucial step in planning process?
11. Define 'Objective'?
12. Define 'Strategy'.
13. Define 'Policy'.
14. Define 'Rules'.
15. Give anyone example of 'budget'.
16. What is standing plan?
SHORT ANSWER TYPE QUESTIONS (3 OR 4 MARK)
1. What are the internal limitations of planning?
2. Enumerate six points of importance of planning.
3. How is planning a pervasive function of management?
4. How is planning forward looking?
OR
Planning is futuristic' explain?
5. Planning involves decision making". Explain.
6. 'Planning reduces creativity'. How?
7. 'Planning does not guarantee success'. Comment.
8. Enumerate the steps involved in the planning process.
9. What do you mean by objectives?
10. Explain the meaning of policies.
11. What is meant by procedures?
12. What do you mean by methods?
13. What do you mean by rules?
14. What do you mean by programmes?
15. What is meant by budget?
LONG ANSWER TYPE QUESTIONS (5 OR 6 MARKS)
1. Defining 'organizational objectives' is the first step in the process of planning. Explain, in brief, the
other steps of this process.
Or
Explain the steps involved in the process of planning.
ORGANISING1. What is organizing?.2. Give any one suitability of functional structure.3. What is formal organization?4. What are the elements of delegation of authority?5. Give any one example of informal organization.6. Give any one suitability of divisional structure.7. Give any two merits of divisional structure.8. Out of responsibility, accountability and responsibility, which can be completely delegated.?9. Give any one advantages of functional structure..10. Decentralization is the extension of a concept. Name the concept . 11. What do you mean by delegation of authority?12. Give any one example of delegation of authority in your Vidyalaya.13. What do you mean by decentralization?14. Name the steps involved in organizing process.15. Which one is compulsory delegation or decentralization?
Staffing1. What is the next function after organizing?2. What is staffing?3. Give any two importance of staffing.4. What do you mean by recruitment?5. What do you mean by selection?6. Give any two merits of external sources of recruitment7. Give any merits of internal sources of rectruitment.8. Write any two methods of on the job training method.9. Write any two methods of off the job training method.10. What do you mean by training?11. Name the steps involved in staffing process.12. Name the steps involved in selection process.13. State any two merits of delegation.14. State any two merits of decentralization.15. Name any two external sources of recruitment.
DIRECTING & CONTROLLING
Q1- Define formal communication? 1Q2- What is informal communication? 1Q3- What is meant by ‘Grapevine? 1Q4- What do you mean by Chain Communication? 1Q5- Food, Clothing & Shelter are the examples of which type of needs? 1Q6- What is meant by ‘Motivation’ as an element of directing? 1Q7- State any two points of the importance of Motivation. 1Q8- Who is treated as supervisor? 1Q9- Explain the meaning of controlling . 1Q10- What are the elements of directing? 3Q11- Name the different styles of leadership. 3Q12- Enumerate any three advantages and any three disadvantages of formal communication?3Q13- What do you mean by NOISE in Communication process ? State any four examples. 3Q14- Define ‘Retirement Benefits as financial motivation. 3Q15- Give an example of Individual Need Hierarchy. 3Q16- State any three types of needs which govern human motivation? 3Q17- Distinguish between leaders and managers. 4Q18- Explain any two objectives of controlling. 4Q19- Explain briefly the various qualities of a successful leader? 5Q20- Write the importance of supervision in the modern business. Q21- Explain the various steps involved in the process of controlling? 6Q22- Define Monetary Incentives? State any five monetary incentives. 6Q23- Write the meaning of motivation . Why it is important to motivate employees in an
organization ? 6Q24- Explain the Maslow’s Need Hierarchy theory of motivation. 6Q25- Write the name of network of communication are there and Explain it. 6
Group E
Financial ManagementMATERIAL FOR SLOW LEARNER
Q 1 Name the cheapest source of finance to a company. (1)
Q 2 Name the decision to acquire a new and modern plant to upgrade an old one. (1)
Q 3 Why investors want dividend? (1)
Q 4 Define Business finance. (1)
Q 5 How the EPS is calculated? (1)
Q 6 Discuss two objective of financial planning. (3)
Q 7 Define current assets and give four examples. (3)
Q 8 What do you mean by financial Leverage? (3)
Q 9‘Fixed capital decisions involve more risk’ How? (3)
Q 10 Explain briefly any four points of the role of financial management. (4)
Q 11 Explain by giving any four reasons, why capital budgeting decisions are important.(4)
Q 12 “Financial planning does not serve any useful purpose” Comment. (5)
Q 13 Explain any five factors which affect the dividend policy of a company. (5)
Q 14 What is meant by financial management? Explain any three decisions involved in it.(5)
Q 15 Explain any six factors affecting the financial decision of a company. (6)
Q 16 Explain any six factors affecting the financial decision of a company. (6)
Q 17 What is meant by financial management? Explain its role. (6)
Q18. Name the concept which increases the return on equity shares with a
change in the capital structure.
Q19. A company wants to establish a new unit in which a machinery of worth
Rs. 10 lakhs is involved. Identify the type of Decision involved in financial
management.
Q20. What is the primary aim of financial management?
Q21. What is financial risk?
Q22. Why service-industry require less working capital?
Q23.. What are capital budgeting Decisions? Explain three factors affecting
capital budgeting Decisions.
Q24. What is meant by fiancial planning? Explain its objectives.
Q25. Explain the meaning and objectives of financial management
Q26. Explain financial Leverage and Trading on Equity.
Q27. Explain the various financial decisions taken by an organisation.
Financial markets
1. What is meant by a financial market?2. What is financial intermediation?3. Name the two segments of financial markets.4. list any two participants in capital market.5. what are the instruments of money market?6. what is the minimum amount of treasury bills?7. what is the maturity period of commercial papers?.8. What are the two segments of capital market?9. What is the other name of primary market?10. List four major participants of money market.11. Money market has no physical location. Then how is trading done?12. Differentiate between trade bills and commercial bills.13. Define primary market.14. How do financial market promote capital formation?15. “ SEBIi is the watchdog of the securities .” Explain16. why was SEBI established?17. What settlement system does the equity spot market follow?18. How many depositories are operating in India? Name any two19. Define dematerialization.
Marketing1) What do you mean by marketing?2) Explain the production concept, product concept and selling concept?3) Differentiate between selling and marketing?(any 3)4) Name the 4 P’s of marketing?5) What are consumer and industrial products? Give 2 examples each.6) What is packaging and why it is necessary?7) What do you mean by brand name? What are the features of a good brand name? Explain with
the help of an example.8) Explain the various factors that affect the price determination?9) What are the various distribution channels that help in the distribution process?10) What is marketing mix? Explain?11) What are the various components of promotion?12) What are the advantages and disadvantages of advertising?13) Name any 2 companies each that use advertising and personal selling to market their
products?14) Name any 4 commonly used sales promotion activities?15) Differentiate between personal selling and advertising?(any 3)16) You are the marketing manager of a handset Company. What marketing strategies will you use
to market a new handset?17) What information will you find on the packaging of
a)Medicineb)Soapc)Food product
CONSUMER PROTECTION
1) Why there is a need for protecting the consumers?2) When the consumer protection act was passed?3) What are the different rights available to the consumers?4) How a consumer can be protected?5) Write a note on 3 tier redressal mechanism?6) What are various duties and responsibilities of a consumer while purchasing a product from
the market?7) Name any 3 NGO and consumer protection associations working in India?8) What is various reliefs available to the consumers?
Question Bank: Slow Learner
Accountancy1 Mark questions
For slow learners:-
(Accounting for Partnership firm-fundamentals)
1) What is Partnership deed?2) What can be the rate of interest on capital in the absence of Partnership deed?3) Write the meaning of Profit and Loss Appropriation Account.4) Write 2 types of capital.5) Write the formula for the calculation of “Managers’ commission on Profits before charging such
commission “.6) What can be the journal entry for the “ profit in the P&L Appropriation A/c”. 7) Write any 1 feature of Partnership.8) Write the formula for the calculation of interest on drawings.9) Write any 2 items of capital account.10) What do you mean by “Current Account”.11) Is sleeping partner is liable to the acts of other partners?12) What is the minimum and maximum no. of partners in a partnership firm?
(Change in Profit Sharing Ratio among the existing Partners)1) Define sacrificing ratio?2) Define gaining ratio?3) What is the formula for calculating sacrificing ratio?4) What is the formula for calculating gaining ratio?5) Define goodwill.6) Name any two factors affecting goodwill of a partnership firm.7) What is meant by super profits?8) Write the formula for calculating goodwill under capitalization of average profits.9) Write any 2 situation due to which profit sharing ratio changes.10) Write any 1 characteristic of goodwill.11) Write any 1 method for the calculation of goodwill.12) Write the formula for calculating goodwill from average profits.
3 & 4 marks questions:-For slow learners:-( Accounting for partnership firm-fundamentals)1)Write any 2 difference between P&L Appropriation A/C and P&L A/C.2)Write any 2 difference between fixed capital A/C and fluctuating capital A/C.3) Mention any 3 provisions of the Partnership A/c in the absence of partnership deed.4) What is the purpose of allowing interest on partners’ capital?5) If a fixed amount is withdrawn on the 1st day of every month, what period the interest the interest on total drawings will be calculated for?
6) If the partners’ capital A/Cs are Fixed ,where will you record following items:-a)salary payable to a partner b)share of profit c) interest on drawings.
7) Calculate interest on drawings and capital when rate of interest is 5% on both , A’s capital is Rs, 5,00,000 and drawings are Rs. 2000.
8)Calculate manager’s commission (after charging such commission on net profit) when net profit- Rs.7,60,000 and commission rate is 12%.
( change in profit sharing ratio among existing partners)1) Rahul and Kapil were partners in a firm sharing profits in the ratio 5:3. With the effect from
1stjan 2004 they agreed to share profits equally. Calculate the individual partner’s gain or sacrifice due to change in ratios.
2) Write any 3 factors affecting the value of goodwill.3) write short note on purchased goodwill.4) C,D,&E are partners in a firm sharing profits and losses in the ratio of 3:2:1. They decided to
take partnership for 1/4 th share on 1st april, 2015, For this purpose goodwill is to be valued at 3 times the average profits of 2012-Rs. 2,50,000 ; 2013-Rs. 3,50,000; 2014-Rs. 20,000.
5) The average profits of affirm is Rs. 50,000. The total assests of the firm are Rs. 8,00,000.Value of other liabilities is Rs.5,50,000.Average rate of return in the same business is 10%.
6) ABT Ltd. Earned profits during 2011-Rs.1,80,000 ; 2012- Rs. 1,00,000; 2103- Rs. 50,000 resp. The firm has capital investmen of Rs. 5,00,000.A fair rate of return on investment is 15% p.a. calculate goodwill of the firm based on 3 years’ purchase of average super profits of last 3 years.
7) Capital invested in TMQ Pvt. Ltd. Is Rs.8,20,000. Nromal rate of return is 10%. Average profits of the firm are Rs. 40,000(after an abnormal loss of Rs, 2,0000.Calculate goodwill at 5 times the super profits.C,D,&E are partners in a firm sharing profits and losses in the ratio of 3:2:1. They decided to take partnership for 1/4 th share on 1st april, 2015, For this purpose goodwill is to be valued at 3 times the average profits of 2012-Rs. 2,50,000 ; 2013-Rs. 3,50,000; 2014-Rs. 20,000
Admission of Partner
QUESTIONS: 1 MARK
1. State any one of the rights that the newly admitted partner acquires in the firm.2. How is a new partner admitted to a firm?
Ans: A new partner is admitted according to terms of the agreement between the new partner and the old partners.
3. A and B are partners sharing profits in the ratio of 5:4. They admit C for 1/9th share which he acquires from A. find the new profit sharing ratio.
4. State the meaning of sacrificing ratio.5. How is sacrificing ratio calculated?6. Why are assets revalued at the time of admission of a partner?
PRACTICAL PROBLEMS: (3 MARKS)
7. A, B and C were partners in a firm sharing profits in 3:2:1. They admitted D for 10% profits. Calculate the new profit sharing ratio. ( Ans: 9:6:3:2).
8. X and Y are partners sharing profits in 5:3 ratio admitted Z for 1/10th share which he acquired equally for X and Y. Calculate new profit sharing ratio.(Ans. 23:13:4).
9. Radha and Rukmani are partners in a firm sharing profits in 3:2 ratio. They admitted Gopi as a new partner. Radha surrendered 1/3rd of her share in favour of Gopi and Rukmani surrendered 1/4th of her share in favour of Gopi. Calculate new profit sharing ratio.(Ans. 4:3:3)
10. X and Y are partners in a firm sharing profits and losses in 4:3 ratio. They admitted Z for 1/8th share. Z brought Rs. 20,000 for his capital and Rs. 7,000 for his 1/8th share of goodwill. Show necessary journal entries in the books of X, Y and Z.(Ans. 4:3)
11. Leela and Meeta were partners in a firm sharing profits and losses in the ratio of 5:3. On 1st January, 2014 they admitted Om as a new partner. On the date of Om’s admission, the Balance Sheet of Leela and Meeta showed a balance of Rs. 16,000 in general reserve and Rs. 24,000 (Cr.) in Profit and Loss Account. Record necessary Journal entries for the treatment of these items on Om’s admission. The new profit sharing ratio between Leela, Meeta and Om was 5:3:2.
12. Amit and Viney are partners in a firm sharing profits and losses in 3:1 ratio. On 1.1.2014 they admitted Ranjan as a partner. On Ranjan’s admission, the Profit and Loss Account of Amit and Vinay showed a debit balance of Rs. 40,000. Record necessary Journal entry for the treatment of the same.
13. A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C into partnership for 1/5th share of profits in the firm. The goodwill of the firm is valued at Rs. 1,00,000. He is unable to bring in his share of goodwill. What will be the journal entries?
RETIREMENT AND DEATH OF A PARTNER
QUESTIONS: (1 MARK)
1. What is meant by retirement of a partner?2. Define gaining ratio.3. How is gaining ratio calculated?4. When is Partner’s Executors Account prepared?5. Why is gaining ratio calculated?6. A, B and C are partners sharing profits in the ratio of 3:2:1. B retires and the new profit sharing
ratio between A and C is 3:1. State the gaining ratio.7. State the need for treatment of Goodwill on retirement of a partner.8. P, Q and R were partners in a firm sharing profits in the ratio of 5:4:3. Their capitals were Rs.
40,000, Rs. 50,000 and Rs. 1,00,000 respectively. State the ratio in which the goodwill of the firm amounting to Rs. 1,20,000 will be adjusted on the retirement of R.
9. Ram, Mohan and Sohan were partners in a firm sharing profits in the ratio of 4:3:2. Mohan retired, his share was taken over equally by Ram and Sohan. In which ratio will the profit or loss on revaluation of assets and liabilities on the retirement of Mohan be transferred to the capital account of the partners?
10. State any two deductions that may have to be made from the amount payable to the legal representatives of a deceased partner.
11. What are the different ways in which a partner can retire from the firm?12. Distinguish between Sacrificing Ratio and Gaining ratio.13. Write the various matters that need adjustments at the time of retirement of a partner.
Death of a partner
1. A,B and C were partners in a firm. C died on 28th Feb 2014. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average profit of three complete years before death, profit for 2011 2012 and 2013 were Rs. 1400 and Rs. 1600 and Rs. 1800 respectively.Calculate C’s share of profit till his death.
2. If profit till the date of death are to be ascertained A B and sharing profit in the ratio of 2:2:1 B died on 31st March 2014,Accounting are closing on December sales for the year 2013 amounted to Rs. 9,00,000 , sales of Rs. 3,00,000 amounted between the period from 1 Jan 2014 to 31 March 2014. The profit for the year 2013 amounted to Rs. 90,000.Calculate deceased partner’s share in the Profit of the firm.
3. A B and C are partners sharing profit and losses in the ratio 2:2:1 . C died on 31st March 2014 profit and sales for the calendar year 2013 were Rs. 3,00,000 and Rs. 30,00,000 respectively. Sales during Jan to March 2014 were 4,50,000. Calculate share and profit of C up to date of death.
4. D P and G were partner in a firm sharing profit and losses in the ratio of 5:3:2 . P died on 31May 2013 his share of profit from the closure of the last accounting year to the date of death , was to be calculated on the basis of the average of three completed years of profit, before death, profit for the years ended 31stdec 2010,2011,2012 were Rs. 51,000 Rs. 45,000 and 39,000 respectively.Calculate P’s share of profit.
DISSOLUTION OF PARTNERSHIP FIRMVERY SHORT ANS. QUESTION (Carrying 1 Marks Each)1 What is meant by dissolution of partnership?2 What is realization account?3 On dissolution of a firm where are assets shown in the balance sheet transferred ?4 On dissolution of a firm where is cash in transferred?5 On dissolution of a firm what entry is passed on making payment of realization expanses by a
partner?6 0n a firm ‘ s dissolution what entry will be made on realization of goodwill which was shown
in balance sheet.7 If creditors are R25000 ,capital is R 150000 and cash balance is R 10,000 what will be amount
of sundry assets.?8 On dissolution, patents appearing in balance sheet transferred to which account?
PRACTICAL QUESTION (Carrying 6 Marks each )
9 Pass the journal entry for the following…..(i) Expenses of realization Rs 8000(ii)Expenses of realization Rs 10000 were paid by a partner(iii) Realization expenses of Rs 12000 were to be met by Tushar,a partner,but were paid by the
firm(iv)Suresh a partner was paid remuneration of Rs 10000 and he was to meet all expenses(iv) Viru a partner was paid remuneration of Rs 50000 and he was to meet all expenses.
Actual expenses amounted to Rs 20000.(v)Realisation expenses amounted to Rs 15000. Rs 10000 were to be borne by a partner and
the balance by the firm.10 Dipali and Rajshree are partners in a firm sharing profits and losses in the ration of 3:2.
They decided to dissolve there firm on 31st March 2012, when there balance sheet was as under…
Liabilities Rs Assets RsCapital AccountsDeepali 18,400Rajshree 10,600
Sundry Creditors
29,000
2000 ______31, 000
Freehold property InvestmentsSundry DebtorsStockCash at bank
16,0004,000200030006000______31 ,000
Investment were sold for Rs 3,800 other assets were realized as follows: Freehold property Rs 28,000, Sundry Debtors Rs 1,800 and Stock Rs 2,800
Creditors of the firm agreed to accept 5% less. Expenses of realisation of assets amounted to Rs 400Close the firms books of accounts by preparing realisation account, partners capital account and Bank account..
11 A B and C are in partnership sharing in 4:3:3. They decided to dissolve the partnership firm. At the date of dissolution their creditors amounted to Rs 16,800 and in the course of dissolution a contingent liability of Rs 3,500 not bought into the account matured and had to be met. There capitals stood at Rs 12,000, Rs 10,000 and 8,000 respectively. B had lent to the firm in addition to capital Rs 13,200. The assets realised Rs 45,650.Prepare the realisation accounts, Partners Capital Accounts..
12 What journal entries would be passed for the following transactions on the resolution of a Firm, after various assets (other than cash) and third parties liabilities have been transferred to realization account?(i) Bank loan Rs 15,000 is paid(ii) Stock worth Rs 10,000 is taken over by partner A for Rs 8,000 (iii) Expenses to resolution amounted to Rs 12,000 and were paid by partner A(iv) A typewriter completely written in the books of accounts were sold for Rs 2,000(vi) Loss on realisation Rs 12,600 was be distributed between A and B in the ratio 4:3
ACCOUNTING OF SHARES
1. What do you mean by share?2. What entry will be passed for receiving aplication money?3. What entry will be passed for due entry of allotment?4. What entry will be passed for making due entry allotment when shares are issued at discount?5. What entry will be passed for making due entry allotment when shares are issued at premium
and share allotment also include securities premium.?6. What entry will be passed for receiving share first call?7. What entry will be passed for forfeiture of shares?8. What entry will be passed for forfeiture of shares when shares are originally issued at
discount?9. What entry will be passed for forfeiture of shares when shares are originally issued at premium
and premium money is not received?10. What entry will be passed for forfeiture of shares when shares are originally issued at premium
and premium money has been received?11. X ltd. invited applications for 1, 00, 000 shares of Rs. 10 each. It received applications for 90,
000 shares. Name the kind of subscription.12. What do you mean by calls in arrears?13. Y ltd. Invited applications for 1, 00, 000 shares of Rs. 10 each. It received applications for 1, 50,
000 shares. Name the kind of subscription.14. What is the other name for nominal capital?15. . What is the rate of interest payable on calls in advance?
ISSUE & REDEMPTION OF DEBENTURESQ1- What is meant by a debentures? 1
Q2- Explain any three types of debentures? 1
Q3- Amount raised by a company by debentures is a capital or loan? 1
Q4- What is meant by issue of debentures for consideration other than cash. 1
Q5- X Ltd. Company issued 10,000 8% Debentures of Rs. 100 each at par value payable Rs. 20 on application , Rs. 30 on Allotment and the balance on first & final call. All money due was duly received. Pass the necessary Journal entries in the books of company.
Q6- Ajay Ltd. Issued 12% debentures of Rs. 100 each at premium of Rs. 10 payable as follows an applications Rs. 30, on Allotment Rs. 60 (including premium) and on call Rs. 20. All the debentures was subscribed for and the money was duly received. Pass necessary journal entries.
Q7- Z Co. Ltd. Issued 5,000 5% debentures of Rs. 100 each at a discount of 10% payable in one installment.
Q8- D Ltd. Purchased Machinery worth Rs. 2,00,000 from E Ltd. On 03.07.15 Rs.50,000 were paid immediately and the balance was paid by issue of Rs. 1,60,000 12% debentures in D Ltd. Pass the necessary journal entries for recording the transaction in the books of D Ltd.
Q9- How will you record the following journal entries for the issue of debentures.1000 6% debentures of Rs. 100 each.
a) Issued at Rs. 100, repayable at Rs. 100b) Issued at Rs. 90, repayable at Rs. 100c) Issued at Rs. 110, repayable at Rs. 100d) Issued at Rs. 100, repayable at Rs. 110e) Issued at Rs. 90, repayable at Rs. 110
Q10- What do you mean by Redemption of debentures.
Q11- When debentures can be redeemed? Explain any two points.
Q12- From where redemption of debentures can be made.
Q13- Can debentures be redeemed out of capital only.
Q14- How much amount is necessary to transfer in DRR as per SBI rules.
Q15- To which account profit on Redemption of debentures in transferred.
Q16- When debentures are kept as investment what will be entry.
Q17- What journal entries are posted in the books of Co. when debentures are redeemed out of profit.
Q18- XYZ Ltd. Issued 1000 9% debenture of Rs 100 each to be redeemed in 4 equal installment , beginning 1st April 2010. The co. duly redemption the debentures.As per the terms & Conditions of issue. Identify the value followed by the Co. in redeeming debentures on time.
Q19- ABC Ltd. Issued 5,00,000 10% Debentures of Rs.100 each to be redeemed in 3 installment . Beginning 1st April 2015 . The company failed to redeem the debentures as per the terms of issue. Identify the values not followed by the company in redeeming the debentures on time.
Topic : Financial Statement Analysis Part 11. Show the major headings into which the Liabilities side of a Company’s Balance Sheet is organised and presented as per Schedule VI of Part 1 of the Companies Act, 1956. [3]
2. Show the major headings into which the Assets side of a Company’s Balance Sheet is [3]organised and presented as per Schedule VI of Part 1 of the Companies Act, 1956.
3. List the items which are shown under the heading Current Assets, Loan and Advances [3]as per schedule VI of Part 1 of the Companies Act, 1956.
4. List the items which are shown under the heading Current Liabitlies and provisions [3]as per schedule VI of Part 1 of the Companies Act, 1956.
5.State the major headings under which the following items will be put as per Schedule [3]VI of Part 1 of the Companies Act, 1956(i) Long Term Investments (ii) Bills Receivable(iii) Motor Car (iv) Discount of issue of shares(v) Securities premium (vi) Unclaimed dividend
6.State the major headings under which the following items will be put as per Schedule [3]VI of Part 1 of the Companies Act, 1956(i) Sundry Creditors (ii) Provision for Tax(iii) Preliminary Expenses (iv) Loose Tools(v) Interest Accrued on investments (vi) Goodwill
7.Under what heads and sub-heads will the following items appear in the Balance Sheet [3]of a company as per Revised Schedule VI Part 1 of the Companies Act 1956:(i) Debentures(ii) Loose Tools(iii) Calls -in-Advance
8. Under what heads and sub-heads will the following items appear in the Balance Sheet [3]of a company as per Revised Schedule VI Part 1 of the Companies Act 1956:(i) Premium on Redemption(ii) Losse Tools(iii) Balances with banks
9. Under what heads and sub-heads will the following items appear in the Balance Sheet (3)of a company as per Revised Schedule VI Part 1 of the Companies Act 1956:(i) Tax Reserve(ii) Interest on calls in advance (iii) Stores and Spares
10. Under what heads and sub-heads will the following items appear in the Balance Sheet (3)of a company as per Revised Schedule VI Part 1 of the Companies Act 1956:(i) Subsidy Reserve(ii) Mining Rights(iii) Provision for Doubtful debts
Accounting Ratios1. The Debt Equity Ratio of a Company is 0.8 : 1. State whether the long term loan obtained by the company will improve, decrease or not change the ratio. [1]
2. The Stock Turnover Ratio of a company is 3 Times. State giving reason, whether the ratio will improve, decline or not change because of increase in the value of closing stock by Rs.5,000. [1]
3. State with reason whether repayment of long term loan will result in increase, decrease or no change of debt equity ratio. [1]
4. The Gross Profit Ratio of a company is 50%. State with reason whether the decrease in rent received by Rs.15,000 will increase, decrease or not change the ratio. [1]
5. Quick Ratio of a company is 1.5:1. State Giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. [1]
6. The Current ratio of a company is 3:1. State with reason, whether the payment of Rs.20,000 to the creditors will increase, decrease or not change the ratio. [1]
7. (a) Compute ‘Debtors Turnover Ratio’ from the following information: [3]
Total Sales Rs.5,20,000, Cash Sales 60% of the Credit Sales, Closing Debtors Rs.80,000, Opening Debtors are 3/4th of Closing Debtors(b) Current Liabilities of a company are Rs.1,60,000. Its Liquid Ratio is .5:1 and Current Ratio is 2.5:1. Calculate Quick assets and Current assets.
8. From the following information, compute 'Debt-Equity Ratio' : [2]
Long term Borrowings............................................ Rs. 2,00,000LongtermProvisions................................................ Rs. 1,00,000Current Liabilities....................................................Rs. 50,000Non-current Assets................................................. Rs. 3,60,000Current Assets.........................................................Rs. 90,000
Question Bank: Gifted Learner
Business Studies
FOR GIFTED STUDENTS
NATURE AND SIGNIFICANCE OF MANAGEMENT
PRINCIPLES OF MANAGEMENT
(1 MARKS EACH)
Q 1Why “management is called group activity”?
Q 2 A company starts using jute bags instead of poly bags . Identify the objective it is trying to achieve.
Q 3 Identify the nature of management when a manager applies the existing theoretical knowledge in his own unique manner.
Q 4 Name the principle of management according to which a manager should replace ‘I’ with ‘We’ in all his conversation with workers.
Q 5 Which principle of management is violated if one month medical leave is granted to superior with pay and only one week medical leave to accountant?
Q 6 Which technique of Taylor separates ‘ Planning’ and ‘execution’ functions?
Q 7 Give the meaning of ‘Mental Revolution’ as suggested by F.W. Taylor.
(3-4 marks each)
Q 8 Management is the process of getting things done with the aim of achieving goal effectively and efficiently. Explain.
Q 9 Management helps in development of society . How?
Q 10 Explain ‘Science not Rule of thumb’ as a principle and ‘Time study’ as a technique of scientific management.
Q 11 Mr. Kapur is responsible for framing plan and policies of Sunrise industries . At which management level he is working , also discuss his four functions.
Q 12 Explain the technique of scientific management which is the strongest motivator for a worker to reach a standard performance.
Q 13 Give the meaning of management and explain how it creates a dynamic organization and helps in the development of society.
Q 14 Write any four difference between ‘Time study’ and ‘Fatigue study’.
Q 15 “Management is a profession like medical or legal profession”. Do you agree with this statement? Give any four reason in support of your answer.
(5-6 marks each)
Q 16 Fayol and Taylor both have contributed immensely to the knowledge of management. Write six points of difference between their contribution on the bases of : (a) unity of command (b) bases of formation (c) personality (d) human element (e) Emphasis (f) applicability.
Q 17 Name the process by which a manager synchronises the activity of different departments and explain any of its five features.
Q 18 “Lack of proper management results in wastage of time, money and efforts”. Do you agree with this statement? Give reason in support of your answer.
Q 19 “An employee working in a factory must not waste time in search of raw material or tools and he should know the place where his superior will be available in case of any need”. Which principle of Fayol is being highlighted in the given statement? State any five adverse consequences of not following the given principle.
Q 20 Volvo Ltd’s target is to produce 10,000 books per month at a cost of Rs 100 per book. The production manager achieved this target at a cost of Rs 90 per book. Do you think the ‘Production Manager’ is effective ? Give reason in support of your answer with explanation.
Business Environment1. Why is business environment uncertain? - 1 Mark
2. What is meant by Market Orientation? - 1 Mark
3. How can environment awareness help managers? - 1 Mark
4. How can political stability be beneficial to the economy? - 1 Mark
5. What was the immediate cause of economic reforms in 1991? - 1 Mark
6. What is meant by threats?- 1 Mark
7. Give one of the most important objectives of Indian developmentprogrammes at the time of
independence.- 1 Mark
8. 'Environment provides both constraints and opportunities." Comment.
9. How have customers benefited by increased competition afterliberalisation and globalisation?
3 or 4 Marks Questions
9. Business environment or Environmental Scanning helps in theidentification of threats and early
warning signals." Explain?-3or4 Marks
10. What is meant by liberalization? List the impact of changes in government policy on business and
industry.
11. Explain the meaning of the term Privatisation? List any two reformsmade under Privatization
12. Enumerate the various ways in which managers respond to changes inbusiness environment.
13. Mention four examples of acquisitions and mergers.
5 or 6 Marks Questions
14. Explain the changes initiated by the Government of India since 1991.
15. 'Explain 'fiscal reforms' and 'monetary reforms' as per economic changeinitiated by Government
of India since 1991.
16. Explain any five ways in which managers have responded to changes inbusiness environment.
Value Based Questions
1. Mr. Prasanth Gupta is the owner and manager of a grocery store. He attended management seminar. The topic was on globalisation and impact of technology on business. He was shocked by many television ads and mailers to see differentopportunities available on the internet for his expansion. To upgrade the technology in his business outside the city and he feels internet does not have any application to the retailindustry. What should Mr. Prasanth do to avoid any negative impact of the changes in business environment? By adopting technological environment what values Mr. Prasanthcan exhibit in his business?
2. Decline in interest rates on housing loans declared by RBI. Name the component of business environment. What values we inculcated by this component of business environment?
3. Alcohol beverages are prohibited to be advertised on media’. Which component of general environment prohibits advertise? What values are boosted by the government?
4. The government restricted the use of LPG cylinders to only nine per family per year. Name the dimension of business environment highlighted in the above. Explain the dimension. What is the value hereby elicited by the government?
5. ‘Demand for reservation in jobs for minorities’. Identify the type of dimension of business environment. State the values promoted in the above case
6. Male CEOs are most preferred for all type of organization. Don’t you think female executive need to have a fair chance? If so give valuable suggestions.
QUESTION BANK FOR GIFTED CHILDREN(HOTS)
Organizing
1. A manager delegates his works to his subordinates who fails to achieve the target assigned to him by the manager.Who is responsible here and why?
2. A manager restricts the rise of any informal group within the organization, even he keeps watch in the personal interaction of the employees. Which values are violated here?
3. An organization is completely decentralized and each level of management is free to take decision in their own without consulting the top level. But the middle level and supervisory level management make decision in consultation of the top level management as far as possible which values are followed here?
4. Which function of management is concern with structure of various parts of an organization.5. What is the meaning of organization structure ?6. Which kind of relationship shown by organizational structure?7. Name the concept which involves systematic delegation of authority from top management to the lower
level management.8. Decentralization is the extension of a concept?9. Out of responsibility , accountability and responsibility, which can be completely delegated.?10. ‘if we delegate we multiply a manager into two but if we decentralize we multiply him into many.’ Justify
your answer.11. ‘the directors of Bhuwan Ltd. An organization manufacturing computers, want to double the sales and have
given this responsibility to their sales manager. The sales manager further divides this responsibility to the five salesmen. These salesmen could not achieve the target. Who is accountable for non-completion of target and why?
12. Amar Ltd. is manufaactiring toys and has production, sales, purchase and finance department. Which types of organizational structure would you suggest them? State any three advantages of this types of organizational structure.
13. Can an overburdened manager take help from his subordinates? How? Explain the three important things he should keep in mind while taking such help.
14. Can a large sized organization be totally centralized or decentralized? Give your opinion.15. Decentralization is extending delegation to the lowest level. Comment.
STAFFING
1. Why is recruitment called a positive process?2. Name the concepts which involves growth of individuals in all respects?3. “our assets walk out of the door each evening, we have to make sure that they come back the next
morning”. This statement relates to which function of management. Explain the importance of this function.
4. Out of human resources management and staffing which one is wider?5. Name the source of recruitment in which newspapers, employment exchange, T.V., etc. are used.6. Name the method of training suitable for plumbers, electricians and iron workers. Explain that method.7. Which source of recruitment has the disadvantages of increase in labour turnover.8. Name the method of training which facilitates easy promotion replacement or transfers..9. Some learning opportunities are designed and delivered to improve skills and abilities of employees
whereas some others are designed to help in the growth of individuals in all respects. Identify and explain the two concepts explained above.
10. Suchitra, a sales manager in a mineral marketing company is getting less salary than male employees at similar posts even though she sales more than the target allotted to her only since she belongs to a minority community. Which values have been affected here?
11. Mr. Paramjit, has applied for the post of clerk in an organization by submitting false certificate of class Graduation and he has finally been selected.Which value has been affected here?
12. A personnel manager while selecting new employees appoints only that person who fulfills his personal requirement directly or indirectly. Which values are violated here?
13. A manager appoints one of his relatives as an accountant ignoring talents. Which values are violated here?
14. In an organization the female employees are getting promotion late as compared to male employees. Which value is missing here?
15. An employee has been terminated due to a small mistake without hearing him, while the other one was not terminated on the same mistake. Which value has been neglected here?
TOPICS - DIRECTING & CONTROLLING
Q1- In which type of formal communication ‘ Orders’ are included? 1Q2- Suggestion and Reactions are included in which type of formal communication? 1Q3- Name the type of communication which has ‘ Better human relations’ as one of its advantages.
1Q4- Give one Critism of Maslow’s Theory. 1Q5- What does the level of ability to do certain work of a person depends on ? 1Q6- What does the willingness to do the certain work of a person depends on? 1Q7- Name the type of formal communication in which two Department Heads communicate with
each other. Give any two reasons why this type of communication is required.3
Q8- Managerial functions cannot be carried out without an efficient system of communication. “Do you agree with statement? Give any three reasons in support of your answer.
3
Q9- Explain the Esteem Needs of an employee. 3
Q10- Clarify Job Enrichment and Job Security’ as non financial motivations. 3Q11- The performance of an organization depends upon how a leader inspires and influence the
behavior of his followers. Explain? 4Q12- A supervisor hears the suggestion and also implements the good suggestions while taking
decisions for the employees. Which value has been given importance here?4
Q13- On coming to know the negative deviations , fines are imposed on erring employees . Which value is being violated here? 4
Q14- “An effort to control everything may end up in controlling nothing.” Explain 4Q15- “Planning is looking a head and Controlling is looking back.” Comments. 5
CASE STUDYQ16- Rajat Ltd. Produces hosiery items for export purpose. ‘Raymond’ a foreign import company has send a complaint that the clothes used in undergarments in January 2014 dispatch is substandard.
6 MATERIAL FOR BRIGHT LEARNER
Q 1 Name the decision to acquire a new and modern plant to upgrade an old one. (1)
Q 2 Enumerate three important decisions taken in financial management. (1)
Q 3 What is the link between operating cycle and working capital? (1)
Q 4 ICICI Bank wants to open a new branch of his bank? What is this decision called? (1)
Q 5 Name the concept which increases the return on equity shares with a change in the capital structure of a company. (1)
Q 6 State why the working capital needs for a ‘Service-industry’ are different from that of a Manufacturing industry. (1)
Q 7 ‘Cost of debt’ is lower than the cost of equity share capital. Give reasons why even then a company cannot work only with the debt. (1)
Q 8 Discuss about working capital affecting both liquidity as well as profitability of a business. (3)
Q 9 Explain the meaning of Fixed capital. Explain any two factors that determine the fixed capital of a company.(3)
Q 10 “Share Capital is better than debt capital”. In the favour of this statement explain one factor which affects the capital structure. (3)
Q 11 “Tax benefit is available only in case of payment of interest and not on the payment of preference dividend” Why? (3)
Q 12 To avoid the problems of shortage and surplus of fund what is required in financial management? Name the concept and explain its any three points of importance. (4)
Q 13 To tackle the uncertainty in respect of availability and timings of funds what is required? Name the concept involved and explain its three points of importance. (4)
Q 14 Name the process which helps in determining the objective, policies, procedures, programmes and budgets to deal with the financial activities of an enterprise. Explain its three points of importance. (4)
Q 15 A businessman who wants to start a manufacturing concern approaches you to suggest him whether the following manufacturing concerns would require large or small working capital: (6)
i) Bread ii) Sugar iii) Furniture manufacturing against specific order iv) coolers v) Motor car
Q 16 You are a Finance Manager of a newly established company. The Directors have asked you to determine the amount of Fixed Capital requirement for the company. Explain any four factors that you will consider while determining the fixed capital requirement for the company. (6)
Q 17 A wholesaler of onion comes to know that due to less production the prices of onion will increase heavily. He store the onion and during rising prices. Earn heavy profits by selling the stored onion. From the earned profits he provides some money for social activities also. In this situation which value he affects here.
(6)
Q17. Suggest working capital requirement for following manufacturing concern:
a) Bread
b) Sugar
c) Coolers
d) Motor Car
e) Locomotive
f) Furniture on Specific order.
VALUE BASED QUESTIONS
Q In a company profits are heavy and in future less scope of expansion exists. Company has decided to pay a very less dividends. Here which value and whose interest have been affected?
Q A company wants to show higher profit and for this:
a) Depreciation was charged at lower rates.
b) Goodwill, Patents, Trademarks and other intangible assets were shown at higher value.
Explain the value which is affected her?
Q A wholesaler of onion comes to know that due to less production the prices of onion will increase heavily. He store the onion and during rising prices. Earn heavy profits by selling the stored onion. From the earned profits he provides some money for social activities also. In this situation which values he affects here.
Financial Market
MATERIAL FOR BRIGHT ACHIEVER
1) Name the market where companies issue new securities. 1
2) What are different ways of issuing securities in primary market? 1
3) Name any two instruments of money market. 1
4) Enumerate the objectives of SEBI. 1
5) What are the protective functions of SEBI? 1
6) Nature of ‘Capital Market’ can be well explained with the help of its features. State any three such features of capital market. 3
7) It is a short term unsecured promissory note, negotiable and transferable by endorsement and delivery within a fixed maturity period. Name it. 3
8) Distinguish between capital market and money market on the basis of expected return. 3
9) The director of a company wants to modernize its paints and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant the new public issue of shares. Advice the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares. 4
10) You are a finance expert. One of your friends comes to you and tells you that the capital market and the money market are one and the same, where as you differ with him. How would you convince him? Give any four reasons. 4
11) The directors of a newly established company having paid up equity share capital of Rs.2.5 cores, desire to get its shares treated at all India level stock exchange. As finance manager of the company, suggest the name of stock exchange for purpose. Give any three reasons in support of your answer.
4
12) ‘To promote orderly and healthy growth of securities market and protection of investors, Securities and exchange board of India was set up ‘With reference to this statement, explain the objective of securities board of India.
13) .Distinguish between capital market and money market on the following basis.a) Participantsb) Instruments Traded.c) Duration of Securities Traded.d) Expected Returne) Safetyf) Liquidity.
14. Primary Market contribute to capital formation directly Secondary Market does so indirectly. Explain.
15. You are finance expert. Your father feels that there is no difference between Primary Market and Secondary Market. Where do you differ with him? How would you convince him? Give reasons in support of your answer.
16. What are the benefits of depository services and D Mat Account.
17. Explain the constituents of depositry services.
18. Mohan wants to sell 50 shares of Tata Motor. Explain the tradingprocedure of shares.
VALUE BASED QUESTIONS
Q.1 A public Ltd. Co. achieved the minimum subscriptions by (private placement). Whose interest has been ignored here? Q.2 A fast food manufacturing foreign company plans to open chain of cheap fast food centers near the schools in Delhi. According to you what will be the results of this plan? Q.3 A Company does window dressing in its financial statement to attract investors and creditors. Is it correct in your opinion? Which values are affected here?
Marketing
1. Define marketing? Contrast the features of marketing and selling?2. Explain the societal marketing concept with the help of an example?3. Write a note on marketing management?4. Enumerate the various concepts that have evolved over time with respect to marketing?5. You are a textile trader in a small area and are struggling hard in a competitive world to survive in
that environment .what marketing mix you follow to gain the market share?6. Classify the products on the basis of the shopping efforts involved with the help of examples?7. Aggressive promotion efforts are required for which kind of products. Explain?8. What is the difference between a brand and a trademark?9. What are the various levels of packaging? Explain with the help of an example?10. Name the 3 organisations which have ISO 9001:200c certification?11. What are various factors affecting price determination?12. What is zero level marketing .explain with reference to a company?13. What is promotion and what are its various components?14. What is the 5th p of marketing mix? Why it is considered the 5th p of marketing?15. Advertising is a boon or a bane. Justify your answer with the help o an example.16. Explain(do any 2)
A)Lucky draw as sales promotionB)Full finance as sales promotionC)Sampling as sales promotion
17. You are a marketing manager of a leading car making company and your customers are facing the engine problem in the cars which were purchased last year which resulted in the dissatisfaction among the purchasers. Suggest the strategy as a marketing manager to bring back your goodwill. What values are you following in this case?
18. In the dynamic environment there is no single best marketing strategy. Explain the statement?19. The success of a business depends on the marketing decisions it make .justify the statement with
the reference to a company.
20. Differentiate between online marketing and traditional marketing?21 What is the role of competitors on the marketing decisions of a company. Explain with the help of
an example.22. Your company is producing low cost laptops for the school children. as a marketing manager how
you will plan the marketing strategy for your product. What values are you following in the case?CONSUMER PROTECTION 1. Explain the redressal mechanism under consumer protection in detail? 2. How NGO’S and consumer associations help in dealing with the consumer grievances? 3. How government has protected the consumers legally through various steps? Justify? 4. What are the various rights granted to the consumers? 5. You are an entrepreneur and dealing in electronic goods. What are your rights and duties towards
customers? What values are being followed by you as a businessman?6. You bought a food product from the market and you found it adulterated but you didn’t complain
to the seller. What values are not followed here and what can be the future prospects of this event if you didn’t complain?
Question Bank : Gifted LearnerAccountancy
For Gifted learners:-( From chapter-1, Accounting for partnership firm-Fundamentals)1) Write any 1 feature of Profit and loss Appropriation Account.2) What do you mean by “Unlimited liability”.3) What accounts are maintained :-a) when the capital are fixed?
b) when the capitals are fluctuating?4) If the partner’s capital are fixed where will you record interest on drawings and share of Profit of a Partner?5)Name the methods for the calculation of calculation of interest on drawings.6) why is it necessary to have a partnership deed ?7) If a “Sleeping Partner “contributes 80% of the total capital then what would be his share in profits?8) Give 1 difference between fixed capital a/c and fluctuating capital a/c.9) Write any 2 provisions in the absence of Partnership deed.10) If a partner’s loan to the firm is Rs. 5,60,000 then what would be the amount of interest on it in the absence of partnership deed?
12) What is the accounting treatment regarding the partner’s loan?
( Change in Profit Sharing ration among the existing partners)1) State any 2 situations when reconstitution of a partnership firm take place.2) What do you mean by reconstitution of partnership firm?3) What is meant by change in profit sharing ratio?4) Give any 1 situations under which sacrificing ratio may be applied.5) Give any 1 situation under which gaining ratio may be applied.6) Calculate sacrificing ratio when O ld ratio of A & B is 3:2and new ration of A&B is 1:1.7) Calculate gaining ratio when old ratio of C&D is 2:1and new ratio of C&D is 1:1 .8) Write any 2 factors affecting the value of goodwill.9) What do you meant by self-generated goodwill?10) What is meant by Average profits?11) How could we calculate goodwill from super profits?12) Write the 2 ways of calculating goodwill under capitalization method.
Partnership (Fundamentals)1) Prepare format of P & L Appropriation A/c.2) X and y are partner with capitals of Rs. 2,00,000 and Rs. 56,000 on 1-04-11 and their profit sharing
ratio is 2:1. Interest on capital is agreed @ 12% p.a. y is to be allowed an annual salary of RS.66,000. The profit fir the year ended 31-3-12 was Rs. 1,50,000. Manager is entitled to a commission of 10% of profits. Prepare profit and loss appropriation account.
change in profit sharing ratio among existing partners
1)Tan, Ran and San are partners in a firm sharing profits and losses in the ratio of 5:2:1. They decided to take Yan partnership for 1/4 th share on 1st april, 2016, For this purpose goodwill is to be valued at 5 times the average profits of 2012-Rs. 2,50,000 ; 2013-Rs. 3,50,000; 2014-Rs. 20,000, 2015-75,000.
2)GST Ltd. made profits during 2009-Rs.1,80,000 ; 2010- Rs. 1,00,000; 2011- Rs. 50,000 and 2012-Rs. 36,000resp. The firm has capital investment of Rs. 5,60,000.A fair rate of return on investment is 25% p.a. calculate goodwill of the firm based on 3 years’ purchase of average super profits of last 4 years.
3) On April 1st 2014, an existing firm had assets of Rs. 5,50,000 including cash of Rs.20,000.the had a reserve fund Rs. 90,000,partner’s capital accounts showed a balance of Rs.3,380,000 and creditors amounted to Rs. 30,000.If the normal rate of return is 20% and the goodwill of the firm is valued at Rs.64,000 at 4 year’s purchase of super profit, find the average profits of the firm.
4)X,Y and Z are partners sharing profit and losses in the ratio of 4:3:2.Goodwill does not appear in the books but it is worth Rs.36,000. The partners decide to share future profits in equal proportions. Give a journal entry to record the above change .Also indicate the individual partner’s gain or loss due to change in the ratio. Show your working clearly.
Partnership Fundamentals1) Prepare format of P & L Appropriation A/c.2) X and y are partner with capitals of Rs. 2,00,000 and Rs. 56,000 on 1-04-11 and their profit sharing
ratio is 2:1. Interest on capital is agreed @ 12% p.a. y is to be allowed an annual salary of RS.66,000. The profit fir the year ended 31-3-12 was Rs. 1,50,000. Manager is entitled to a commission of 10% of profits. Prepare profit and loss appropriation account.
Change in profit sharing ratio among existing partners
1)Tan, Ran and San are partners in a firm sharing profits and losses in the ratio of 5:2:1. They decided to take Yan partnership for 1/4th share on 1st april, 2016, For this purpose goodwill is to be valued at 5 times the average profits of 2012-Rs. 2,50,000 ; 2013-Rs. 3,50,000; 2014-Rs. 20,000, 2015-75,000.
2)GST Ltd. made profits during 2009-Rs.1, 80,000; 2010- Rs. 1, 00,000; 2011- Rs. 50,000 and 2012-Rs. 36,000resp. The firm has capital investment of Rs. 5,60,000.A fair rate of return on investment is 25% p.a. calculate goodwill of the firm based on 3 years’ purchase of average super profits of last 4 years.
3) On April 1st 2014, an existing firm had assets of Rs. 5,50,000 including cash of Rs.20,000.the had a reserve fund Rs. 90,000,partner’s capital accounts showed a balance of Rs.3,380,000 and creditors amounted to Rs. 30,000.If the normal rate of return is 20% and the goodwill of the firm is valued at Rs.64,000 at 4 year’s purchase of super profit, find the average profits of the firm.
4)X,Y and Z are partners sharing profit and losses in the ratio of 4:3:2.Goodwill does not appear in the books but it is worth Rs.36,000. The partners decide to share future profits in equal proportions. Give
a journal entry to record the above change .Also indicate the individual partner’s gain or loss due to change in the ratio. Show your working clearly.
1 (Value Based) Karan and Jitendra are Partners in a firm. They share Profit and losses in the ratio of 2:1. Since both of them are specially abled, sometimes they find it difficult to run the business are their own. Leena, a common friend decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of leena’s admission the balance sheet of karan and Jitender was as under:
Liabilities Amount (Rs.) Assets Amount (Rs.)CapitalKaran 2,40,000Jitender 1,60,000General ReserveCreditorEmployees Provident fund
4,00,00060,00060,00080,000
MachineryFurnitureStockSundry DebtorsBankCash
2,40,0001,60,0001,00,00060,00020,00020,000
6,00,000 6,00,000
It was decided to :
(i) Reduce the value of stock by 10,000.(ii) Depreciate furniture by 10% and appreciated machinery by 5%.(iii) Rs. 6,000 of Debtors proved bad. A provision of 5% was to be created on Sundry debtors
for Doubtful Debts.(iv) Goodwill of the firm was valued at Rs. 90,000.
Prepare Revaluation A/c, Partner’s capital A/c and Balance Sheet. Identify the value being conveyed in the question.
2. A and B share profits of a business in the ratio of 5:3. They admit C into the firm for a fourth share in the profits to be contributed equally by A and B. on the date of admission, the Balance Sheet of A & B is as follows:
BALANCE SHEET AS AT MARCH 31 2014
Liabilities Amount (Rs.) Assets Amount (Rs.)A’s CapitalB’s CapitalReserve FundBank LoanCreditors
60,00040,0008,00024,0004,000
MachineryFurnitureStockDebtorsCash
52,00036,00020,00016,00012,000
1,36,000 1,36,000
Terms of C’s admission were as follows:(i) C will bring Rs. 50,000 his capital.
(ii) Goodwill of the firm is to be valued at 4 years’ purchase of the average super profits of the last three years. Average profits of the last three years are Rs. 40,000; while the normal profits that can be earned the capital employed are Rs. 24,000.
(iii) Furniture is to be appreciated to 24,000 and the value of stock to be reduced by 20%.Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the firm after admission of N.(Ans. Revaluation Profit = 8,000; Capital A/c A = Rs.7,800; B = Rs.5,400; C = Rs. 3,400)
3. P and Q are partners in a firm sharing profits and losses in the ratio of 7:3. Their Balance Sheet as at 31st March 2014 is as follows:
Liabilities Amount(Rs) Asset Amount(Rs.)CreditorsReserveCapital A/cRajat 50,000Ravi 40,000
30,0005,000
90,000
Cash in HandCash at BankDebtorsFurnitureStock
18,00045,00022,00015,00025,000
1,25,000 1,25,000On 1st April,2014, they admit R on the following terms:(i) Goodwill is valued at Rs. 20,000 and R is to bring in the necessary amount in cash
as premium for goodwill and Rs. 30,000 as capital for 1/4th share in profits.(ii) Stock is to be reduced by 40% and furniture is to be made by cash.(iii) Capitals of the partners shall be proportionate to their Profit Sharing Ratio taking R’s
capital as base. Adjustments of capitals to be made by cash.Prepare Revaluation Account, Partners’ Capital Accounts and Cash Account and Balance Sheet. (Ans. Revaluation Loss = 19,000; Cash A/c = 62,000)
4. Abhay and Beena are partners in a firm. They admit Chetan as a partner with 1/4th share in the profits of the firm. Chetan brings Rs.40,000 as his share of capital. The value of the total assets of the firm is 1,08,000 and outside liabilities are valued at 20,000 on that date. Give necessary enty to record goodwill at the time of Chetan’s admission. Also show your working notes. (Firms Goodwill = 32,000)
5. P and Q were partners sharing profits in the ratio of 3:2. Their balance sheet on March 31st 2014 are as follows:
Liabilities Amount (Rs.) Assets Amount (Rs.)CreditorsBills PayableBank overdraftReserveP’s CapitalQ’s Capital
20,0003,00017,00015,00070,00060,000
CashDebtors 20,500Less: Provision for bad debts 300StockPlantBuildingsMotor Vehicles
14,800
20,20020,00040,00070,00020,000
1,85,000 1,85,000
They agreed to admit Mishra for 1/4th share from 1.4.2014 subject to the following terms:(a) P to bring in capital equal to 1/4th of the total capital of P and Q after all adjustments
including premium for goodwill.(b) Buildings to be appreciated by Rs. 14,000 and stock to be depreciated by Rs. 6,000.(c) Provision for Bad debts on Debtors to be raised to Rs. 1,000.(d) A provision be made for Rs. 1,800 for outstanding legal charges.(e) P’s share of goodwill/premium was calculated at Rs. 10,000.
Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the new firm on R’s admission.
6. On 31.3.14, the Balance sheet of W and R sho shared profits in 3:2 ratio was as follows:
Liabilities Amount Assets AmountCreditorsProfit and loss A/cCapital Accounts:W 80,000R 60,000
40,00030,000
1,40,000
CashSundryDebtors 40,000Less: Provision 14,00StockPlant and MachineryPatents
10,000
38,60050,00070,00041,400
2,10,000 2,10,000On this date, B was admitted as a partner on the following conditions:(a) B will get 4/15th share of profits.(b) B had to bring Rs. 60,000 as his capital to which amount other partners capitals shall
have to be adjusted.(c) He would pay cash for his share fo goodwill which would be based on 2 1/2years
purchase of average profits of past 4 years.(d) The assets woul be revalued as under:
Sundry debtros at book value less 5% provision for bad debts. Stock at Rs. 40,000, plant and Machindery at Rs. 80,000.
(e) The profits of the firm for the years 2011, 2012, 2013 were Rs. 40,000, 28,000 and Rs. 34,000 respectively.
Prepare Revaluation A/c, Partner’s Capital A/c and the Balance Sheet of the new firm.
7. X and Y were partners in a firm sharing profits in 5:3 ratio. They admitted Z as a new partner for 1/3rd share in the profits. Z was to contribute Rs. 20,000 as his capital. The Balance Sheet of X and Y on 1.4.2014 the date of Z’s admission was as follows:
Liabilities Amount Assets AmountCreditorsCapitals:X 50,000Y 35,000General Reserve
27,000
85,00016,000
Land and BuildingPlant and MachineryStocksDebtors 20,000Less:Prov. 1,500InvestmentsCash
25,00030,00015,000
18,50020,00019,500
1,28,000 1,28,000
Other terms agreed upon were:
(i) Goodwill of the firm was valued at Rs. 12,000.(ii) Land and Building were to be valued at Rs. 35,000 and Plant and Machinery at Rs.
25,000.(iii) The provision for doubtful debts was found to be in excess by Rs. 400.(iv) A liability for Rs. 1,000 included in sundry creditors was not likely to arise.(v) The capitals of the partners be adjusted on the basis of Z’s contribution of capital in
the firm.(vi) Excess or shortfall if any to be transferred to accounts. Prepare Revaluation
Account, Partners’ Capital Accounts and the Balance sheet of the new firm.
RETIREMENT AND DEATH OF A PARTNER
PRACTICAL PROBLEMS (6 OR 8 MARKS)
1. R, S and M were carrying on business in partnership sharing profits in the ratio of 3:2:1, respectively. On March 31, 2009, Balance Sheet of the firm stood as follows:
Balance Sheet as on March 31, 2009
Liabilities Amount Assets AmountCreditorsCapitals:R 40,000S 15,000M 25,000
32,000
80,000
BuildingDebtors StockPatentsBank
46,00014,00024,00016,00012,000
1,12,000 1,12,000
S retired on the above mentioned date on the following terms:(a) Buildings to be appreciated by Rs. 14,000(b) Provision for doubtful debts to be made @ 5% on debtors, stock is valued at Rs. 20,700.(c) Goodwill of the firm to be valued at Rs. 18,000.(d) Rs. 10,000 to be paid to S immediately.
Prepare Revaluation A/c, Partner’s Capital A/c and Balance Sheet.(Ans. Revaluation A/c = 10,000, R’s capital A/c = Rs.40,500, M’s Capital A/c = Rs. 15,167, S’s capital A/c = Rs.24.333)
2. Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3:2:1. Manisha retires and goodwill of the firm is valued at Rs. 1,80,000. Aparna and Sonia decided to share future in the ratio of 3:2. Pass necessary Journal entries.Journal
Aparna’s Capital A/c Dr. 18,000Sonia’s Capital A/c Dr. 42,000
To Manisha’s Capital A/c 60,000(Goodwill credited to Manisha’s capital and debited to continuing partners’ capitals in the gaining ratio) (3)
3. Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3:2:1 on March 31, 2007, Naman retiresThe various assets and liabilities of the firm on the date were as follows:Cash Rs. 10,000, Building Rs. 1,00,000, Plant and Machinery Rs. 40,000, Stock Rs. 20,000, Debtors Rs. 20,000 and Investments Rs. 30,000.The following was agreed upon between the partners on Naman’s retirement:(i) Building to be appreciated by 20%.(ii) Plant and Machinery to be depreciated by 10%.(iii) A provision of 5% on debtors to be created for bad and doubtful debts.
(iv) Stock was to be valued at Rs.18,000 and Investment at Rs. 35,000.Record the necessary Journal entries to the above effect and prepare the revaluation account.(Ans. Revaluation A/c = Rs. 18,000)
4. Radha, Sheela and Meena were in partnership sharing profits and losses in the proportion of 3:2:1. On april 1, 2013, Sheela retires from the firm. On that date, their Balance Sheet was as follows:
Liabilities Amount Assets AmountCreditorsBills PayableExpenses OwingGeneral ReserveCapitals:Radha 15,000Sheela 15,000Meena 15,000
3,0004,5004,50013,500
45,000
Cash in HandCash at BankDebtorsStockFactory PremisesMachineryLoose Tools
1,5007,50015,00012,00022,5008,0004,000
70,500 70,500
The terms were:(a) Goodwill of the firm was valued at Rs. 13,000.(b) Expenses owing to be brought down to Rs. 3,750.(c) Machinery and Loose Tools are to be valued at 10% less than their book value.(d) Factory premises are to be revalued at Rs. 24,300.
Prepare :1. Revaluation account.2. Partner’s capital accounts and 3. Balance Sheet of the firm after retirement of Sheela.
5. Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3:2:1. Naresh retired from the firm due to his illness. On that date the Balance sheet of the firm was as follows:
Balance sheet as on March 31st 2013
Liabilities Amount Assets AmountGeneral ReserveSundry CreditorsBills PayableOutstanding SalaryProvision for legal damagesCapitalsPankaj 46,000Naresh 30,000Saurabh 20,000
12,00015,00012,0002,2006,000
96,000
BankDebtors 6,000Less: Provision for D.debts 4,00Stock FurniturePremises
7,600
5,6009,00041,00080,000
1,43,200 1,43,200
Additional Information:
(i) Premises have appreciated by 20% ,Stock depreciated by 10% and provision for doubtful debts was to be made 5% on debtors. Further, provision for legal damages is to be made for Rs. 1,200 and furniture to be brought up to Rs. 45,000.
(ii) Goodwill of the firm be valued at RS. 42,000.(iii) Rs.26,000 from Naresh’s Capital Account be transferred to his loan account and balance be
paid through bank; if required, necessary loan may be obtained from bank.(iv) New profit sharing ratio of Pankaj and Saurabh is decided to be 5:1.
Give the necessary ledger accounts and Balance Sheet of the firm after Naresh’s retirement.(Ans. Revaluation A/c – Rs. 18,000; Balance Sheet – 1,54,000)
6. Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of ½, 1/6 and 1/3 respectively. The Balance Sheet on april 1, 2013 was as follows:
Liabilities Amount Assets AmountBills PayableSundry creditorsReservesCapital AccountsNarang 30,000Suri 30,000Bajaj 28,000
12,00018,00012,000
88,000
Freehold PremisesMachineryFurnitureStockSundry Debtor20,000Less:Provision 1,000Cash
40,00030,00012,00022,000
19,0007,000
1,30,000 1,30,000
Bajaj retires from the business and the partners agree to the following:(a) Freehold premises and stock are to be appreciated by 20% and 15% respectively.(b) Machinery and furniture are to be depreciated by 10% and 7% respectively.(c) Bad debts reserve is to be increased to Rs. 1,500.(d) Goodwill is valued at Rs. 21,000 on Bajaj’s retirement.(e) The continuing partners have decided to adjust their capitals in their new profit sharing
ratio after retirement of Bajaj. Surplus/deficit, if any, in their capital accounts will be adjusted through current accounts.Prepare necessary ledger accounts and draw the Balance Sheet of the reconstituted firm.
7. The Balance Sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on March 31, 2013
Liabilities Amount Assets AmountBills PayableSundry CreditorsReserve FundCapital Accounts:Rajesh 20,000Pramod 15,000Nishant 15,000
6,25010,0002,750
50,000
Factory BuildingDebtors 10,500Less: Reserve 500Bills ReceivableStockPlant and MachineryBank Balance
12,000
10,0007,00015,50011,50013,000
69,000 69,000
Pramod retires on the date of Balance Sheet and the following adjustments were made:
(a) Stock was valued at 10% less than the book value.(b) Factory buildings were appreciated by 12%.(c) Reserve for doubtful debts be created up to 5%.(d) Reserve for legal charges to be made at Rs. 265.(e) The goodwill of the firm be fixed at Rs. 10,000.(f) The capital of the new firm be fixed at Rs. 30,000. The continuing partners decide to keep
their capitals in the new profit sharing ratio of 3:2.Pass Journal entries and prepare the Balance Sheet of the reconstituted firm after transferring the balance in Pramod’s capital Account to his loan account
8. A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet as at 31st March, 2014 is
Liabilities Amount Assets AmountCreditorsBills PayableGeneral ReserveCapital A/csA 40,000B 40,000C 30,000
30,00016,00012,000
1,10,000
Cash in HandDebtors 25,000Less: Provisio3,000StockFurnitureMachineryGoodwill
18,000
22,00018,00030,00070,00010,000
1,68,000 1,68,000
B retires on 1st April, 2014 on the following terms:
(a) Provision for Doubtful Debts be raised by Rs. 1,000.(b) Stock to be depreciated by 10% and Furniture by 5%.(c) There is an outstanding claim for damages of Rs. 1,100 and it is to be provided for.(d) Creditors will be written back by Rs. 6,000.(e) Goodwill of the firm is valued at Rs. 22,000.(f) B is paid in full with the cash brought in by A and C in such a manner that their capitals are in
proportion to their profit-sharing ratio and Cash in Hand remains at Rs. 10,000.Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.
Death of a partner
5. P R and S are in partnership sharing profit 4:3:1, respectively. It provided in the
partnership deed that on the death of any partner his share of goodwill is to be valued at 13
(one third) of the net profit credit to the account during the last four completed years. R died on 1st Jan 2014.The firm profit for the four years were as:-2010 Rs. 2, 40,000 2014 Rs. 1, 60,000 2012 Rs. 80,000 2013 Rs. 1, 20,000.
(a) Determine the amount that should be Credited to R in respective of his share of goodwill(b) Pass Journal entry without goodwill A/C for its adjustment.
6. Ram and Shyam in partnership sharing profit and losses 3:2 .Shyam died three months after the date of the last Balance Sheet. According to the partnership deed, the legal personal representatives shyam are entitle to the following payments.
(a) His Capital as per the last Balance sheet.(b) Interest on above capital @ 10% till the date of death.(c) His sharing of profit till the date of death. Calculate on the basis of last year’s profits. His drawings
are to bear Interest at an average rate of 6% on the amount irrespective of the profit.The Netr profit for the last three years after charging insurance premium were Rs.60,000 , Rs. 75,000 and Rs. 90,000 respectively. Shyam’s Capital as per Balance Sheet was Rs. 1,20,000 and his drawings till the date death were Rs. 15,000.Draw Shyam’s Account to be rendered to his representatives. (6)
7. K L and M are partners in firm sharing profits in the ratio of 1 : 1 ;3 respectively . Their Capital Accounts showed for following balance on 31.3.2014 K Rs. 2,10,000 L Rs. 1,95,000 and M Rs. 6,30,000. From closes its accounts every year on 31st March K died on 1 Aug 2014. In the event of death of any partner , the partnership deed provides for the following:-
(a) Interest on capital will be calculated at the rate of 10% p.a.(b) The deceased partner’s share in the goodwill of the firm will be calculated as the basis of 2 years
purchases of the average profit of last three years. The profit of the firm for the last three years were Rs. 2,70,000Rs. 3,00,000 Rs. 3,30,000.
(c) His share in the reserve fund of the firm will be paid. The reserve fund of the firm was Rs. 1,80,000 at the time of K’s death.
(d) His share of profit till the date of death will be calculated on the basis of sale. It is also specified that the sales during the year 2013-14 were Rs. 60,00,000. The sales from 1st April 2014 to 1st Aug 2014 were Rs. 1,20,000. The profit of the firm for the year ending 31st March 2014 was Rs. 6,00,000. Prepare K’s Capital Account to be presented to this legal representatives.(8) A B and C were partners in a firm sharing profit and losses equally, Their Balance sheet on 31.12.2013.
Liabilities Rs. Assets Rs.
Capital A 14,000 B 14,000 C 14,000 42,000
6,000
4,000
Plant and
machinery
Stock
Debtors
Cash on Balance
Goodwill
12,000
6,000
19,000
8,000
7,000
52,000 52,000
B. Died on 14 March 2014. According to the partnership deed, executors of the deceased partner are entitled to :-
(1) Balance of partner’s Capital account.(2) Interest on Capital @5%p.a.(3) share of goodwill calculated on the basis of twice the average of part three year’s profit and (4) share of profit from the c/o of the last accounting year till the date of death on the basis of twice the average of three completed year’s profit before death. Profit for 2011,n 2012 and 2013 were Rs. 16,000 , Rs. 18,000, Rs. 20,000 respectively.Pass the necessary Journal entries and prepare B’s capital Account to be rendered to his executes.
QUESTION BANK (HOT )
DISSOLUTION OF PARTNERSHIP FIRM
1. What is meant by dissolution of partnership?2. Give two circumstances under which a partnership is dissolved.3. On dissolution of a firm, out of the proceeds received from the sale of assets who will be paid last of
all ?4. What is Realisation Account?5. On dissolution of a firm, where are assets shown in the balance sheet transferred?6. On dissolution of a firm, where is cash in hand transferred?7. On dissolution of firm what entry is passed for payment of an unrecorded liability ?8. How much amount will be paid to A ,if his opening capital is Rs 2,00,000 Lacs and his share of
realisation profit amounts to Rs 10,000 and he has taken over assets valuing Rs 25,000 from the firm
9. X, Y, and Z are in partnership sharing profits and losses equally . They decided to dissolve the partnership on31st March 2001 and which date the balance sheet of the firm was as follow…
The Assets realized as under:
Premises 20% more , Machinery 40% less ,Stock Rs 5,000 more , Sundry Debtors and Bills Receivables at Book values. Expenses of realization amounted to Rs 2,000 , Sundry Creditors agreed to accept Rs 57,500 in full settlement.
Liabilities Amount Assets AmountCapital A/csX Y ZCurrent A/csX YSundry CreditorsAdvance from XAdvance from Y
90,00060,00040,000
13,0004,00060,00015,0005,000
2,87,000
PremisesMachineryStockSundry DebtorsBills ReceivableCash at BankCurrent A/C - Z
80,00068,00040,00030,00036,00030,0003,000
2,87,000
Show necessary ledger accounts to close the books of the firm..
10 Pritam and Naresh decided to dissolve their firm on Sept 30 2013 , when their Balance sheet stood as follows:
The assets were realized as follows;
Stock 20,000 , Bills Receivables Rs 3,800 , Furniture Rs 5,100 , Plant and Machinery Rs 35,000 , Sundry Debtors at 10% Less than Book Value ,Sundry Creditors Allowed a discount of 5% , Pritam agreed to pay his wife’s loan ,Naresh agreed to pay out standing rent.. Expenses on dissolution come to Rs 800.
Pritam and Naresh shared profit and losses in the ratio of their capitals. Accounts were finally settled. Prepare Journal , realization A/cs , Capital Accounts, and Balance sheet .
11 A and B were partners in a firm from 1.4.2010with capital of Rs60,000 and Rs 40,000 respectively. They shared profits and losses in the ratio of 3 : 2 . They carried on business for2 years. In the first year they made a profit of Rs 50,000 and in the 2nd year ending 31st march 2003 , they incurred a loss of Rs 20,000 . As the business was no longer profitable they decided to wind up. Creditors on that date were Rs 20,000. The partners withdrew rs 8,000 each per year for their personal expenses.. The assets realized Rs 1,00,000 . The expenses on realization were Rs 3,000 . Prepare realization account and show your workings clearly.
Libilities Amount AssetsCapital Accounts: Pritam NareshLoan Accounts: Naresh PritamSundry CreditorsOutstanding Rent
40,00020,0000
14,00010,00036,000500
_______1,20,500
Cash At BankStock in TradeBills Receivables Sundry Debtors 45,000Less: Provision For bad debts 1,500FurniturePlant and MachineryGoodwillPrepaid Insurance
40021,5008,800
43,5003,00023,00020,000300
________1,20,500
Accounting for share capitalOne marks questions-
1) Can a company issued share at 6% discount in its initial public offer. Give reason.2) Can securities premium be used as working capital? Give reason in support your answer.3) State when can share be reissued at the discount of more than 10%?4) What is meant by sweat equity shares?5) What is meant by private placement of the shares?6) What is meant by employees stock option plan?7) State the meaning of buy back of shares?8) What is meant by preferential allotment of shares?
Three marks question-9. Shayam Ltd have securities premium reserve Rs 22 lacs , 9% debenture Rs 12 lacs, underwriting
commission is Rs 10 lacs. The company decided to redeem its 9% debenture at a premium of 10%.you are required the ways in which company can utilized the securities premium amount.
10. Krishan Ltd offer to the public 30000 equity share of Rs 10 each at a premium of Rs 20% per share. Application for 28000 were received and allotment was made to all the applicant. All calls duly received except the final call of Rs 2 per share on 200 shares.show the share capital in the Balancesheet of the company as schedule 6 of the company Act 1956 also prepare notes to the account for the same.
11. Z Ltd purchased building for Rs 660000 from sohan Ltd of the amount was mate payment in the cash and for the remaining share were issued at a premium of 10% and discount on 10% also. Pass necessary journal entries in the books of Z ltd also prepare notes to the account for the same.
12. Z Ltd purchased building for Rs 660000 from Sohan Ltd of the amount was made payment in the cash and for the remaining share were issued at a premium of 10% and discount on 10% also. Pass necessary journal entries in the books of Z ltd.
13. Rattan ltd forfeited 500 shares of Rs 100 each issued at discount of 10% for non -payment of first call of Rs 20. The final call of Rs 55 per share was not paid .out of these share 300 shares reissued 125 per share fully paid up. The remaining shares were reissued at 80% fully paid up. Pass journal entries in the book of rattan Ltd.
Eight marks questions-14. Amrit Ltd issued 50000 shares of Rs 10 each at a premium of Rs 2 per share payable as Rs 2 on
application, Rs 4 on allotment (including premium) , Rs 2 on first call and remaining on second & final call. Application were receipt 75000 shares, 15000 shares rejected and Balance was made on pro rate basis. All money was received except allotment and calls from c who applied for 1200 shares. All his shares were forfeited only 600 shares reissued at Rs 8. Pass necessary journal entries and discuss the value violated in the above sum at the time rejection of the shares.
15. Hari om Ltd issued for public subscription 1 lac equity shares of Rs 10 each at a discount of 10% payable as follows-
All application Rs 3 , on allotment Rs 4 , balance on first & final call.
Applications were received for 190000 shares. The shares were allotted pro rata the applicant for 150000 shares. Money over paid on application was utilized towards payment due on allotment and money refunded where no allotment was made. a) Vineet to whom 1000 shares were allotted expressed his inability to pay allotment money. These
shares were forfeited just after allotment.b) Vijay who applied 3000 shares did not pay allotment and first call money. These shares were
forfeited before demanding the final call.c) Ravi did not pay two call on 4000 shares, his shares were forfeited after the final call was made.
All the forfeited share reissued to Naman as fully paid up at Rs 8 per share. Pass journal entries.
TOPIC- ISSUE & REDEMPTION OF DEBENTURESQ1- What is meant by issue of Debentures as collateral security.Q2- What are the alternatives available to a company for the allotment of debentures
when there is over subscription of debentures.Q3- How can a debenture be categorized from the point of view of a security?Q4- What is meant by redemption of debentures by ‘Purchase in the open market.’?Q5- Name the head under which he debenture redemption reserve appears in the
Balance Sheet.Q6- Why would an investor prefer to invest in the debentures of a company rather than
in its shares.Q7- Why would an investor prefer to invest in the shares of a company rather than in
the debentures?Q8- Which are the different companies for which debenture redemption reserve is not
necessary as per SEBI guidelines?Q9- What is he special provision regarding redemption of debentures as per provision of
company act and SEBI guidelines?Q10- The rate of return is 10% where as borrowing cost is 15% . The company raises
funds through issue of fresh share capital. In your opinion, What value has been fulfilled by the company in raising funds?
Q11- The return on investment is 10% and borrowing cost is 15%. The company still prefer to raise funds by borrowing and not by raising share capital. In your opinion, what company in raising funds?
Q12- Give journal entries in each of the following alternative cases assuming the face value of a debenture being Rs. 100.
a) A 10% debenture issued at Rs. 100, repayable at Rs 100.b) A 10% debenture issued at Rs. 95, repayable at Rs 100.c) A 10% debenture issued at Rs. 105, repayable at Rs 100.d) A 10% debenture issued at Rs. 100, repayable at Rs 105.e) A 10% debenture issued at Rs. 95, repayable at Rs 105.f) A 10% debenture issued at Rs. 105, repayable at Rs 110.
Q13- R & R Ltd. Issued 15,000; 10% Debentures of Rs 100 each 6% discount, redeemable at par after 5 years on 1st April, 2012. Issue was fully subscribe. According to the terms of issue, interest is payable on quarterly basis. Interest for the quarter ending 31st March , 2013 was paid on 31st March, 2013.You are required to pass Journal entries for issue of debentures and interest.
Q14- X Ltd. Has balance of Rs. 4,00,000 in the Statement of Profit and Loss. The company decided to forego the payment of dividend and instead utilize the profits to repay Rs 3,50,000; 12% Debentures on 30th June, 2013 at a premium of 10%. Debentures interest is payable annually on 31st December every year when the accounts are closed. The company also has a balance of Rs 2,00,000 in the Debenture Redemption Reserve. Journalise the transactions.
Q15- (Purchase of own Debentures as Investment). Gupta Constructions Ltd. Issued 10,000, 8% Debentures of Rs 500 each. The Board of Directors decided to purchase 1,000 debentures at a price of Rs 485 each for investment purpose. After few months, it sold these debentures @ Rs 510 each in the market. Pass Journal entries to show the above transactions assuming the Debenture Redemption Reserve has adequate balance.
Analysis of Financial Statement
1. The following figures were extracted from the Trial Balance of Vinod Limi [3]
Share Capital 10,000 Equity Shares of Rs.10 each fully paid Securities premium Rs.10,00012% Debentures Rs.50,000; proposed dividend Rs.25,000; Creditors Rs.5,000You are required to show balance sheet of the company as per the Schedule VI Part1 of the Companies Act, 1956.2. The following ledger balances were extracted from the books of Vinod Limited:
[3]
Land and Building Rs.2,00,000; 12% Debentures Rs.2,00,000; Share Capital 1,00,000
Equity Shares of Rs.10 each fully paid up; Plant and Machinery Rs.8,00,000; Goodwill
Rs.2,00,000; Investment in Shares of KK Limited Rs.2,00,000; General Reserve Rs.
2,00,000; Stock in Trade Rs.1,00,000; Bills Receivables Rs.1,00,000; Debtors
Rs.1,50,000; Creditors Rs.1,00,000; Bank Loan (unsecured) Rs.1,00,000; Provision for
taxation Rs.55,000; Discount on issue of 12% Debentures Rs.5,000; Proposed
Dividend Rs.1,00,000.You are required to prepare balance sheet of the company as per the Schedule VI Part1 of the Companies Act, 1956.3. Prepare a Balance Sheet of Vinod Limited on March 31, 2014 as per the provisions of
[3]
Schedule VI, Part 1 of the Companies Act 1956:General Reserve................................................................ Rs.3,000Debentures........................................................................ Rs.3,000Statement of Profit & Loss............................................... Rs.1,200Depreciation on fixed tangible asset................................. Rs. 700Fixed tangible assets......................................................... Rs.9,000Sundry Creditors............................................................... Rs.2,500Preliminary Expenses....................................................... Rs.300Share Capital..................................................................... Rs.5,000Sundry Debtors................................................................. Rs.6,100
4. List the major heads under which the „Equity and Liabilities‟ are presented in the Balance Sheet ofa Company as per Schedule VI (Revised) Part I to the Companies Act 1956.[3]
5. List the major heads under which the assets are presented in the Balance Sheet of a company as per schedule VI (Revised) part I of the Companies Act 1956.[3]
6. List the different items which are presented under the major headNon-current Assets‟ as perrevised Schedule VI Part I of the Companies Act 1956. [3]
7. List the items which are presented under the major head „Current Assets‟ as per Revised Schedule VI Part I of the Companies Act 1956.[3]
HOTS
1. (Liquidity Ratios) A Business has a Current Ratio of 3:1. Its net working capital is [3]
Rs.4,00,000 and its stock is valued at Rs.2,50,000. Calculate Liquid Ratio.
2. Calculate Current Ratio and Quick Ratio : [3]
Sundry Debtors Rs.4,00,000; Prepaid Expenses Rs.40,000; Debentures Rs.2,00,000; Stock Rs.1,60,000; Bills Payable Rs.80,000; Marketable Securities Rs.80,000; Sundry Creditors Rs.1,60,000; Cash Rs.1,20,000; Expenses Payable Rs.1,60,000.
3. Calculate Current Assets form the following information: [3]
(i) Stock Turnover : 4 Times(ii) Stock at the end is Rs.20,000 more than the stock in the beginning (iii) Sales Rs.3,00,000(iv) Gross Profit Ratio 25%(v) Current Liabilities Rs.40,000(vi) Quick Ratio 0.75 : 1
4. The Current Ratio of a company is 2:1. State which of the following would improve, reduce, or not change the ratio: [3]
(i) Repayment of a Current Liability(ii) Purchasing goods on credit(iii) Sale of office equipment for Rs.4,000 (Book Value Rs.5,000)(iv) Sale of goods Rs.11,000 (Cost Rs.10,000)(v) Payment of Dividend
5. A firm has Current Ratio of 4:1 and Quick Ratio of 2.5:1. Assuming inventories are [3]
Rs.22,500, find out the total current assets and total current liabilities.
6. Current Ratio of a Company is 3 : 1, Working Capital is Rs.30,000. Calculate the amount of Current Assets and Current Liabilities.[3]
7. The Current Ratio of a company is 2:1. State which of the following would improve, reduce, or not change the ratio: [3]
(i) Repayment of a Current Liability(ii) Purchasing goods on credit(iii) Sale of Motor Vehicles at a loss of 20%(iv) Sale of goods at a profit of 10%(v) Payment of Dividend(vi) Redemption of Debentures at a premium
8.Vinod Limited has a Liquid Ratio of 7:3. If its Stock is Rs.25,000 and its CurrentLiabilities are Rs.75,000, find out the current ratio.[3]
9. Current Liabilities of a company are Rs.1,20,000. Its Current Ratio is 3.00 and Liquid Ratio is 0.90. Calculate the value of current liabilities, liquid assets and inventory.[3]
10. Vinod Limited has a Current Ratio of 3:1. If its stock is Rs.40,000 and total current liabilities are Rs.75,000. Find out its Quick Ratio.[3]
11. Current Assets of a company are Rs.5,00,000; Current Ratio 2.5:1 and Quick Ratio 1:1. Calculate the value of current liabilities, liquid assets and stock.[3]
12. A Business has a Current Ratio of 3:1 and Quick Ratio of 1.2:1. If the working capital is Rs.1,80,000. Calculate the total current assets and value of stock.[3]
13. Vinod Limited has a current ratio of 3.5:1 and quick ratio of 1.5:1. If the excess of current assets over quick assets as represented by stock is Rs.60,000. Calculate Current Assets and Current Liabilities.[3]
MATERIAL FOR BRIGHT LEARNER
1. (Solvency Ratios) Assuming that the Debt Equity Ratio is 2. State giving reasons whether this ratio would increase, decrease or remain unchanged in the following cases:[3]
(i) Purchased of fixed asset on a credit of 2 months(ii) Purchased of fixed asset on a long term deferred payment basis (iii) Issue of new shares for cash(iv) Issue of bonus shares(v) Sale of fixed asset at a loss of Rs.3,000
2. The Debt Equity Ratio of a Company is 1:2. Which of the following transaction wouldincrease, decrease and not change it:[3]
(i) Issue of Equity Shares(ii) Cash Received from Debtors(iii) Redemption of Debentures
(iv) Purchased Goods on credit3. Calculate Debt Equity Ratio from the following: [3]
Equity Share Capital.................................... Rs.5,00,000General Reserve........................................... Rs.1,00,000Accumulated Profits.................................... Rs.50,00010% Debentures.......................................... Rs.1,30,000Current Liabilities....................................... Rs.1,00,000Preliminary Expenses.................................. Rs.10,000
4. From the following information, Calculate the Debt Equity Ratio and Current Ratio:[3]Share Capital...............................................Rs. 2,50,000Bills Payable................................................ Rs.15,000Creditors...................................................... Rs.45,000Debtors........................................................ Rs.60,00012% Debentures.......................................... Rs.2,80,000Bank Balance.............................................. Rs.30,000
Long Term Loan........................................ Rs.1,10,000General Reserve......................................... Rs.25,000
5. Calculate Debt Equity Ratio and Proprietary Ratio from the following data: [3]Equity Share Capital........................................ Rs.75,000Reserve and Surplus........................................ Rs.20,000Debentures....................................................... Rs.40,000Loan from HDFC Bank................................... Rs.30,000Current Liabilities............................................ Rs.15,000Fixed Tangible Assets...................................... Rs.82,000Goodwill.......................................................... Rs.48,000Current Assets................................................. Rs.50,000
6.(Activity or Turnover Ratio) From the given information, Calculate the InventoryTurnover Ratio:[3]
Sales Rs.3,00,000; Gross profit 25% on cost; Opening stock was 1/3rd of the value of the closing stock. Closing stock was 30% of sales.7. Inventory (Stock) Turnover Ratio is 6 times. Average stock is Rs.80,000. Calculate the amount of Gross Profit, if profit is 25% above cost.[3]8. Rs.2,00,000 is the cost of goods sold, inventory turnover 8 times; stock at thebeginning is 1.5 times more than the stock at the end. Calculate the values of openingand closing stock.[3]9. From the following information, determine the opening and closing stock: [3]
Stock Turnover Ratio............................... 4 TimesTotal Sales............................................... Rs.3,00,000Rate of Gross Profit on Sales.................. 20%Closing stock is more by Rs.6,000 than the opening stock.
10. Revenue from operations (Net Credit Sales) of Vinod Limited during the year were Rs.1,80,000. If debtors turnover ratio is 4 times, calculate debtors in the beginning and at the end of the year. You are informed that closing debtors are two times in comparison to opening debtors.[3]
MATERIAL FOR BRIGHT LEARNER
1. From the following information, Calculate: [3]
(i) Opening Stock (ii) Closing StockStock Turnover Ratio.............................. 6 TimesGross Profit............................................. Rs.80,000 (20% of sales)Closing Stock......................................... Rs.15,000 more than opening stock
2. Find out the value of opening stock from the following particulars:[3]
Total Sales........................... Rs.3,00,000Gross Profit......................... Rs.20% on salesStock Turnover Ratio......... 5 Times
3. Find out the Revenue from operations (Sales) if : [3]
Average Stock................................ Rs.1,60,000Stock Turnover Ratio..................... 6 TimesGross Profit..................................... Rs.1,20,000
4.(Profitability Ratio) Vinod Limited earns a Gross Profit of 20% on cost. Its creditsales are twice its cash sales. If the credit sales are Rs.4,00,000. Calculate Gross Profit ratio of the company.[3]
5. Calculate the Gross Profit Ratio based on the following information:
Cash Sales: 25% of Total Sales; Purchases Rs.2,76,000; Credit Sales Rs.2,40,000; Excess of Closing Stock over opening stock Rs.20,000.[3]
6. Calculate Cost of Revenue from operations or Cost of goods sold from the following: [3]
Sales Rs.12,00,000; Sales Return Rs.80,000; Operating Expenses Rs.1,82,000; Operating Ratio 92%.
7. Calculate Return on Investment from the following information:[3]
Net Profit after tax Rs.6,50,000
12.5% Convertible Debentures Rs.8,00,000 Income Tax 50%
Fixed assets at cost Rs.24,60,000; Depreciation Reserve Rs.4,60,000; Current Assets Rs.15,00,000 Current Liabilities Rs.7,00,000
8. (Mixed Questions) From the following information, Calculate any two of thefollowing ratios:[3]
(a) Debt Equity Ratio(b) Interest Coverage Ratio(c) Working Capital Turnover Ratio(d) Return on Investment
Information:
Equity Share Capital Rs.5,50,000; General Reserve Rs.50,000; Statement of profit and loss (profit after tax and interest) Rs.1,50,000; 9% Debentures Rs.2,00,000; Creditors Rs.1,00,000; Land and Building Rs.6,50,000; Equipments Rs.1,50,000; Debtors Rs.1,45,000; Cash Rs.55,000 and Preliminary Expenses Rs.50,000. Sales for the year ended 31.3.2011 was Rs.15,00,000 and Tax paid 50%.
9. From the following information, Calculate any two of the following ratios:[3](a) Debt Equity Ratio (b) Working Capital Turnover Ratio (c) Return on investment Equity Share Capital Rs.50,000General Reserve Rs.5,000Statement of Profit & Loss (Profit after interest and tax) Rs.15,000
9% Debentures Rs.20,000Creditors Rs.15,000Cash 5,500 and Discount on issue of shares Rs.5,000Sales for the year ended 31.3.2011 was Rs.50,000 and Tax rate is 50%.
10. The Debt Equity Ratio of a company is 1:1. State giving reasons, which of the following would improve, reduce or not change the ratio: [3]
(a) Purchase of Machinery for Cash(b) Purchase of goods on credit(c) Sale of furniture at cost(d) Sale of goods at a profit(e) Redemption of debentures at a premium
VALUE BASED QUESTIONS• Prepare Comparative Statement from the following: 31st March, 2007 31st March, 2008 Revenue from Operations 10,00,000 12,50,000 Cost of Goods Sold 5,00,000 6,50,000 Operating Expenses 50,000 60,000 Interest on investments @ Rs.30.000 and taxes payable @ 50%. Identify the values involved in preparation of comparative statement.
CASH FLOW STATEMENT
1. Under which accounting standard cash flow statement is prepared ?2. What are the two methods which can be employed to calculate net cash flow from operating activities?3. How will you treat decrease in prepaid expenses in the Cash flow from operating activities ?4. How will you treat payment of tax and payment of dividend in a cash flow statement?5. How will you classify loans given by Tata Finance Company ?6. Interest received by a Finance co classified under which kind of activities while preparing a cash flow
statement?7. Maintain the net amount of “Source” or “Use” of cash ,when a fixed assets (having book value of Rs
15,000 ) is sold at a loss of Rs 5,000.
8. Classify the following into cash flow from (A) Operating Activities (B) Investing Activities (C) Financing activities(i) Purchase of Machinary(ii) Issue of Debenture(iii) Payment of Income Tax
9. Calculate net cash flow from operating activities from the following information..
Additional Information:
10 calculated cash-flow from financing activities from the following particulars.
Particular 31-03-2006 Rs 31-03-2007 RsEquity Share Capital8% Preference Share capital
8,00,0002,00,000
10,0001,50,000
Profit made during the year end 31st March 2011Transferred to General reserve Depreciation Provided Profit on sale of FurnitureLoss on sale of MachinePreliminary expenses written off
50,00010,00020,0005,00010,00010,000
31-03-2010 31-03-2011Trade ReceivableInventoriesPrepaid ExpensesTrade PayableOutstanding Expenses
20,00015,0002,00035,0003,000
17,00018,0003,00043,0004,000
10 % DebentureSecurities Premium Discount on DebentureUnderwriting commission on issued of shareUnderwriting commission on issued on Debenture
3,00,000 --------3,000_____---------
4,00,00010,0005,0005,0002,500
Additional Information:-
(i) New Share and Debenture were issued on March 31st 2007(ii) Dividend on preference share on interim dividend@ 20% on equity share was paid on March
31st ,2007(iii) Preference share were redeemed on March 31 2007 at a premium of 4% premium on
redemption was provided of profit..
11 . From the following balance sheet of Vivek Ltd. Prepare cash flow statement
I. ASSETS:(1) Non Current Assets
Fixed Assetes (i) Tangible Assets (ii) Intangible Assets
(2). Current Assets (a) Inventory (b) Trade Receivable © Cash and cash equivalents
Total
1,50,00020,000
20,0001,60,00017,000
3,67,000
1,40,00030,000
18,0001,20,00015,000
3,23,000
Notes (1) Share capital 31/03/2012 31/03/2011
Equity Share capital 2,50,000 2,00,00012%Preferance Share capital 40,000 50,000
__________ __________2,90,000 2,50,000
Particulars Note No 31-03-2012 31-3-2011I. EQUITY AND LIABILITIES
(I) Share holder funds(a) .Share Capital(b) Reserve and surplus
2 Current Liabilities Trade Payable
2,90,00072,000
5,0003,67,000
2,50,00050,000
23,0003,23,000
(2). Tangible Assets
Building 80,000 1,00,000Plant 70,000 40,000
________________________________1,50,000 1,40,000
Depreciation charged on plant was Rs 30,000 and Building Rs 50,000
Sample Question Paper
Group – ARemembering basedQ. Mention levels of Management. [3] Understanding basedQ. Differentiate between unity of command and unity of direction. [4]Application basedQ. Explain functions of management with the example of your own school management set-up. [6]High order thinking basedQ. Suppose you are a manger of ABC Ltd. Expecting your subordinates to adapt new environment and working conditions without giving them time to settle down. Which principle of management is being overlooked and why?
6 marksEvaluation“Panchayat in our country have been given power to decide and spend fund granted to them by the govt. for the welfare of villages.”
a. Identify the management principle discussed in it. 2 marksb. Write any two values mentioned in it. 2 marks
Group – CD P Tewary, KV, Kishanaganj, Team LeaderMr. Pankaj Verma , KV KatiharDr. S.P.Srivastava, KV Siwan
1 Marks
1. What is staffing?2. Which organization structure is suitable for a uni-product manufacturing organisation?3. State whether the principle of scalar chain is followed in informal organization or not?4. Distinguish between centralization and decentralization on the basis of freedom of action.5. A manager ignores talent while selecting an employee to benefit his own relative. Give any one value
which is ignored here.
3 Marks
1. What do you mean by delegation of authority? What are its elements? Name them.2. Distinguish between delegation and decentralization any three.3. In a co. all the decision are taken up by top level management only. Which policy is followed by
organization? Explain the drawbacks of this organization.4. “Authority can be delegated but not accountability” why?5. A manager wants to convert a centralized organisation into a decentralized one involving his
employees in decision making. Which values are followed by him?6. Write any two values mentioned in it. 2 marks
Group – D
Amit Kumar, KV Jamalpur, Team Leader
Kamlesh Kumar, KV PurneaUsha Singh, KV KhagualAkhilesh Kumar, KV Mokamaghat
(Directing)
1. What is informal communication? (1)(k)2. Differentiate between Formal and Informal communication
OrWhat are the common barriers to effective communication? Suggest measures to overcome them.
(4)(u)3. Write the name of network of communication is there and explain it.
|B
| C
|D
|
|E Probability
FScalar Gossip
A
G
F
A
HR
D
C
F
A
B
DG
IH
E
OR
Workers of a factory often come to the production manager with the grievances. The manager finds himself overburdened with so many issues. Advise a way to relieve the production manager. (A)
4. To create a desire among employees to achieve at the highest level of the ability is an important aspect of directing. Explain how this works in the success of an organization. (6) (HOTS)
5. In an organization, the good environment refreshment corner and entertainment rooms have been made for all employees, which values have been considered here? (4)(Values)
Group – ELeader – Ranu Choudhary( KV muzaffarpur)
1. Give one protective function of SEBI. 1 marks(Remembering)2. What are the difference between Money Market and Capital Market? 3 marks(Understanding)3. Mr. Roy want to purchase share of ITC. In which market he has to approach? What steps he has to
follow to purchase the share of ITC. 5 marks(Application)4. Classify from the following into Capital Market Instrument and Money Market Instrument
a. Share b. Bill of exchangec. Bank Loand. Bonde. Debenturef. Call moneyg. Commercial paper 4 marks(HOTS)
5. Mr. X, a director of ABC Ltd. Came to know in board meeting that due to some financial decision taken in board meeting the price of some of his company will increase in future. So he purchased a lots of shares of his company in his wife name ----a. What type of trading it is?b. What value is missing here? (Evaluation)
Group – FPreksha, KV Bailey Road,S, Group LeadeSwati Singh, KV Bailey Road, FSShweta, KV Kankarbagh, SS
Topics-Consumer protection and marketing
Remembering1. Define marketing. 1 marksUnderstanding2. Differentiate between marketing and selling. 3 marksApplication3. A consumer has bought a car worth Rs.25 lacs and it had a defective auto parts. What remedies are
available to you? 5 marksHots
4. You want to launch a low cost LED light in rural areas. What marketing mind will you follow to make it a grand success? 6 marks
Evaluation and Multidisciplinary5. A co. is producing liquors and is earning huge profits and also not paying the taxes regularly which
values are ignored by the co. 3 marks
Model Question Paper
Accountancy
Group A
BLUE PRINT
ACCOUNTANCY
S No.
Typology Of Question Very Short
Answer 1 mark
Ques No.
Short Answer
I3 Marks
Ques No.
Short Answer
II4 Marks
Ques No.
Long Answer
I6marks
Ques No.
Long Answer
II8Marks
Ques no.
Marks %
1 Remembering 3,5,19 7 10 23 16 20
2 Understanding 1,6 11,21 13 16 24 30
3 Application 8,9 20,22 14 20 25
4 High Order Thinking Skills 4,18 15 17 16 20
5 Evaluation 2 10 4 5
Total 8X1=8 4X3=12 5X4=20 4X6=24 2X8=16 80(23 Question)
100
MODEL QUESTION PAPER ACCOUNTANCY
CLASS-XII 2015
Max Marks 80
PART A: ACCOUNTING FOR PARTNERSHIP FIRMS AND COMPANIES
1. End of existing agreement due to change in relationship of existing partner is called(a) Revaluation of partnership. (b) Reconstitution of partnership. (c) Realization of partnership. (d) None of the above. (1)
2. Mr. A, Mr. B and Mr. C were partners in a firm sharing profits and losses in the ratio 1:1:1. At the time of admission of a partner, the goodwill of the firm was valued at 60,000. The accountant of the firm passed the entry in the books of accounts and thereafter showed goodwill at 60,000 as an asset in theBalance Sheet. Was he correct in doing so? Why? (1)
3. Mrs. X, Mrs. Y and Mrs. Z are partners. The firm had given a loan of 75,000 to Mrs. Y. They decided to dissolve the firm. In the event of dissolution, the loan will be settled by:(a) Transferring it to debit side of Realization account. (b) Transferring it to credit side of Realization account. (c) Transferring it to debit side of Mrs. Y’s capital(d) Mrs. Y paying Mrs. X and Mrs. Z privately. (1)
4. What is meant by Debenture issued as a collateral security? (1)
5. Tulsian Ltd. issued 50,000 shares of RS. 100 each payable RS.20 on application (on 1 st May 2012); RS.30 on allotment (on 1st January 2013); RS.20 on first call (on 1st July 2013) and the balance on final call (on 1st
February 2014). Shankar, a shareholder holding 5,000 shares did not pay the first call on the due date. The second call was made and Shankar paid the first call amount along with the second call. All sums due were received.Total amount received on 1st February was:(a) RS.15,00,000 (b) RS.16,00,000 (c) RS.10,00,000 (d) RS.11,00,000 (1)
6. Sita and Geeta were partners sharing profits and losses in the ratio of 3:2. On April 1st 2013, they decided to admit Rita for 1/5th share in the profits. They had a reserve of RS.50,000 which they wanted
to show in their new balance sheet. Rita agreed and the necessary adjustments were made in the books. On October 1st 2013, Sita met with an accident and died. Geeta and Rita decided to admit Sita’s daughter Rekha in theirRS.2,00,000 as capital. Calculate Sita share in the reserve on the date of her death. (1)
7. State any three purposes for which securities premium can be utilized as per Co. Act, 2013 . (3)
8. A and B were into the business of providing software solutions in India. They were sharing profits and losses in the ratio 3:2. They admitted C for a 1/5 share in the firm. C, an alumni of IIT, Chennai would help them to expand their business to various South African countries where he had beenworking earlier. C is guaranteed a minimum profit of RS.2,00,000 for the year. Any share is to be borne by A andB in the ratio 4:1. Losses for the year were 50000 Pass the necessary journal entries.
(3)
9. Raymonds Ltd. was registered with an authorized capital of RS.5,00,000 divided into 50,000 equity shares of RS.10 each. Since the economy was in robust shape, the company decided to offer to the public for subscription 30,000 equity shares of RS.10 each at a premium of RS.20 per share. Applications for 28,000 shares were received and allotment was made to all the applicants. All calls were made and dulyreceived except the final call of RS. 2 per share on 200 shares. Show the of Raymonds Ltd.as per Schedule VI of the Companies Act 1956. Also prepare Notes to Accounts for the same.
(3)
10. Bata Ltd. had a prosperous shoe business. They were manufacturing shoes in India and exporting to Japan. Being a socially aware organization, they wanted to pay back to the society. They decided to not only supply free shoes to 50 orphanages in various parts of the country but also give employment to children from those orphanages who were above 18 years of age. In order to meet the fund requirements, they decided to raise 50,000 equity shares of RS. 50 each and 40,000 9% debentures of RS.40 each. Pass the necessary journal entries for issue of shares and debentures. Also identify one valuewhich the company wants to communicate to the society. (3)
11. Following is the Balance Sheet of P, R and S who are sharing profits in the ratio 2:1:2 ason 31st March 2013. (4)Liabilities Amount(RS.) Assets Amount(RS.)Creditors 38,000 Building 2,40,000Bills Payable 2,000 Stock 65,000Capitals: Debtors 30,000P 1,94,000 Cash at bank 5,000R 92,000 Profit and Loss Account 60,000S 74,000 3,60,000
4,00,000 4,00,000P died on 30th September 2013. She had withdrawn 44,000 from her capital on July 1, 2013. According to the partnership agreement, she was entitled to interest on capital @8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profits of the last four years. The profits for the years ended 2009-10, 2010-11 and 2011-12 were RS.30,000, RS.70,000 and RS.80,000 respectively.Prepare P’s account to be rendered to her executor.
12. K and L are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2:1 with capitals RS.5,00,000 and RS.4,00,000 respectively. K withdrew the following amounts duringthe year to pay the hostel expenses of her son.
RS.1st April 5,0001st June 4,5001st Nov. 7,0001st Dec. 2,500
L withdrew RS.7,500 on the first day of April, July, October and January to pay rent for the accommodation of his family. He also paid RS.20,000 per month as rent for the office of partnership whichwas in a nearby shopping complex.Calculate interest on Drawings @6% p.a. (4)
13. (a) A firm earned profits of RS.80,000, RS.1,00,000, RS.1,20,000 and RS.1,80,000 during 2010-11, 2011-12, 2012-13 and 2013-14 respectively. The firm has capital investment of RS.5,00,000. A fair rate of return oninvestment is 15% p.a. Calculate goodwill of the profits of last four years.
(b) M and N are partners sharing profits and losses in the ratio of 7:3. M surrenders 2/10 th from his share and N surrenders 1/10th from his share in favor of O, a new partner. Calculate new profitsharing ratio and sacrificing ratio. (6)
14. (a) Jyoti Company Ltd. has an equity share capital of RS.10,00,000. The company earns a return on investment of 15% on its capital. The company needed funds for diversification. The finance manager had the following options: (i) Borrow RS.5,00,000 @15% p.a. from a bank payable in four equal quarterly installments starting from the end of the fifth year (ii) Issue RS.5,00,000, 9% Debentures of Rs. 100 each redeemable at a premium of 10% after five years. To increase the return to the shareholders, the company opted for option (ii). Pass the necessary journal entries for issue of debentures.
(b) Walter Ltd. issued RS. 6,00,000 8% Debentures of RS. 100 each redeemable after 3 years either by draw of lots or by purchase in the open market. At the end of three years, finding the market price of debentures at RS.95 per debenture, it purchased all its debentures for immediate cancellation. Pass necessary journal entries for cancellation of debentures assuming the company has sufficient balance in DebentureRedemption Reserve. (6)
15. Shashank and Sonu were partners in a firm sharing profits and losses in the ratio 4:3. They decided todissolve the firm on 1st May 2014. From the information given below, complete Realisation A/c, Partner’sCapital Accounts and Bank A/c: (6)
Dr. Realisation A/c Cr.Liabilities Amount(RS.) Assets Amount(RS.)To sundry assets: By Sundry liabilities:-Machinery 5,60,000 -Creditors 40,000-Stock 87,000 -Shashank’s wife 25,000-Debtors 55,000
By Bank:To Bank: -Machinery 4,80,000-Creditors _ -Debtors 10,000
To Shashank’s Capital By Shashank’s Capital-Shashank’s wife’ 34,000 -Stock 1,25,000
-typewriter 70,000 1,95,000To Sonu’s Capital-Realisation expenses 7,000 By Sonu’s Capital
-Debtors 40,000To profit transferred to:Shashank’s capital 4000Sonu’s Capital 3000 7,000
7,90,000 7,90,000
Dr. Partner’s Capital AccountsCr.
Particulars Shashank(RS.)Sonu(RS.) Particulars Shashank (RS.) Sonu (RS.)
To Realisation A/c _____ ____ By _____ _____To Bank A/c 4,00,000 4,50,000 By _____ _____
By _____ _____
Dr. Bank A/c Cr.Particulars Amount(RS.) Particulars Amount(RS.)
To Balance b/d _______ By Realisation A/c ______To Realisation A/c 4,90,000 By Shashank’s Loan 4,000
By Shashank’s Capital 4,00,000By Neha’s Capital _______
16. A and B are partners in a firm sharing profits and losses in the ratio 3:1. They admit C for a ¼ share on 31 st March 2014 when their Balance Sheet was as follows:Liabilities Amount(RS.) Assets Amount(RS.)Employees Provident Fund 17,000 Stock 15,000Workmen’s Compensation 6,000 Debtors 50,000Investment Fluctuation Reserve 4,100 Less provision forCapitals: A 54,000 doubtful debts 2,000 48,000
B 35,000 Investments 7,000Cash 6,100Goodwill 40,000
1,16,100 1,16,100The following adjustments were agreed upon:
(a) C brings in RS.16,000 as goodwill and proportionate capital. (b)Bad debts amounted to RS.3,000. (c) Market value of investment is RS.4,500. (d)Liability on account of workmen’sRS.2,000. compensation
Prepare Revaluation A/c and Partner’s Capital A/cs.OR
X, Y and Z are partners in a firm sharing profits in proportion of 1/2, 1/6 and 1/3 respectively. The Balance Sheet as on April 1, 2014 was as follows:Liabilities Amount(RS. ) Assets Amount(RS. )Employees Provident Fund 12,000 Freehold Premises 40,000Sundry Creditors 18,000 Machinery 30,000General Reserve 12,000 Furniture 12,000Capitals Stock 22,000X 30,000 Debtors 20,000Y 30,000 Less provision forZ 28,000 doubtful debts 1,000 19,000
Cash 7,0001,30,000 1,30,000
Z retires from the business and the partners agree that:(a) Machinery is to be depreciated by 10%. (b)Provision for bad debts is to be increased to RS. 1,500. (c) Furniture was taken over by Z for RS. 14,000. (d)Goodwill is valued at RS. 21,000 on Z’s retirement.
(e) The continuing partners’ have decided to adjust after retirement of Z. Surplus or deficit if any, in their capital accounts will be adjusted through their current accounts. Prepare Revaluation A/c and Partners’CapitalA/c’s.
(8)17. Ganga Ltd. issued 50,000 shares of RS.10 each at a premium of RS.2 per share payable as RS.3 on application, RS.4 on allotment (including premium), RS.2 on first call and the remaining on second call. Applications were received for 75,000 shares and a pro-rata allotment was made to all the applicants.All moneys due were received except allotment and first call from Soni who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for RS.9,600. Final call was not made. Pass necessary journal entries.
ORA Ltd. issued 30,000 shares of Rs. 10 each at a discount of Rs.1 per share payable as Rs.3 on application, Rs.2 on allotment, Rs.2 on first Call and Rs.2 on second call.
Applications were received for 40,000 shares and a pro-rata allotment was made to all the applicants.All money due were received except allotment and first call from Sanjeev who had applied for 2,000 shares. His shares were forfeited after first call. Subsequently, the second call was duly made and duly received. Thereafter, the forfeited shares were reissued for Rs 9 fully paid. Pass the necessary journalEntries (8)
PART B: ANALYSIS OF FINANCIAL STATEMENTS18. Cash deposit with the bank with a maturity date after two months belongs to which of the following while preparing cash flow statement:
(a) Investing activities(b) Financing activities(c) Cash and Cash equivalents(d) Operating activities. (1)
19. A Ltd is carrying on a Chit Fund Company. It invested Rs. 60,000 in shares and Rs. 30,000in debentures of various companies during the year. It received Rs. 6,000 as dividend and interest. Findout cash flows from investing activities. (1)
20. (a) Name the sub heads under the head current Liabilities in Equity and Liabilities part of The Balance Sheet as per Schedule VI of the Companies Act 1956.(b) State any two objectives of Financial Statements Analysis. (4)
21. (a) From the following details, calculate Opening inventory: Closing inventory RS.60,000; Total Revenuefrom operations RS.5,00,000 (including cash revenue from operations RS.1,00,000); Total purchasesRS.3,00,000 (including credit purchases RS.60,000). Goods are sold at a profit of 25% on cost.(b) Current Assets of a company are RS.17,00,000. Its current ratio is 2.5 and liquid ratio is 0.95.Calculate Current Liabilities and Inventory. (4)
22. N Ltd. is into the business of back office operations. Honesty and hard work are the two pillars on which the business has been built. It has a good turnover and profits. Encouraged by huge profits, it decided to give the workers bonus equal to two months salary. Following is the Comparative Statement of Profit and Loss of N Ltd. for the years ended 31st March 2013 and 2014.
(a) Calculate Net Profit ratio for the years ending 31st March 2013 and 2014.
(b) Identify any two values which N Ltd. wants to communicate to the society.
Particulars Note 2012-13 2013-14 Absolute PercentageNo. (RS.) (RS.) Change change
Revenue from operations 20,00,000 30,00,000 10,00,000 50Less Employee benefit expenses 8,00,000 10,00,000 2,00,000 25Profit before tax 12,00,000 20,00,000 8,00,000 66.67Tax rate 40% 4,80,000 8,00,000 3,20,000 66.67Profit after tax 7,20,000 12,00,000 4,80,000 66.67
(4)23. Following are the Balance Sheets of PQR Ltd. as on 31st March 2014 and 2015:
Particulars Note No. 2014-15 (Rs.) 2013-14(Rs.)EQUITY AND LIABILITIES(1) Shareholders Funds
(a) Share capital 14,00,000 10,00,000(b) Reserves and Surplus 1 5,00,000 4,00,000
(2) Non Current LiabilitiesLong term borrowings 5,00,000 1,40,000
(3) Current LiabilitiesTrade Payables 1,00,000 60,000Short term Provisions 2 80,000 60,000
Total 25,80,000 16,60,000
ASSETS(1) Non Current Assets
(a) Fixed assets(i) Tangible assets 3 16,00,000 9,00,000(ii) Intangible Assets 4 1,40,000 2,00,000
(2) Current Assets(a) Inventories 2,50,000 2,00,000(b) Trade Receivables 5,00,000 3,00,000(b) Cash and Cash Equivalents 90,000 60,000
Total 25,80,000 16,60,000
Notes to Accounts:
S.No. Particulars As on 31.3.2015 As on 31.3.2014(Rs. ) (Rs.)
1. Reserves and SurplusSurplus (i.e. balance in 5,00,000 4,00,000Statement of Profit and Loss)
2. Short Term provisions Provision for tax 80,000 60,000
3. Tangible assetsMachinery 17,60,000 10,00,000Less Accumulated depreciation (1,60,000) (1,00,000)
4. Intangible AssetsGoodwill 1,40,000 2,00,000
Prepare a Cash Flow Statement after taking into account the following adjustment:(i) Tax paid during the year amounted to RS. 70,000. (6)
Group B
ACCOUNTANCY (055)CLASS – XII C (2015-16)
Time Allowed – 3 Hrs. Max. Marks – 80General Instructions:-1. This question paper contains Two parts A& B.2. Both the parts are compulsory for all.3. All parts of questions should be attempted at one place.4. Marks are given at the end of each question.
PART ‘A’1. Rita, Sita and Teena are partners in a firm and do not have a partnership agreement. Teena had
given a loan of Rs. 20,000 to the firm and expects an interest @ 10% for the loan. The other partners do not agree to this. At what rate interest should be given to Teena: (a) 5 %(b) 6% (c) 10 % (d) Not to be given (1)
2. X, Y & Z are partners sharing profit and losses in the ratio of 3:2:1. Y retires and the gaining ratio of X and Z is:
(a) 1: 1 (b) 2:1 (c) 3:1 (d) Can’t say (1)
3. ‘Escrow account’ is opened at the time of :(a) Issue of shares (b) Admission of partners (c) Dissolution of firm (d) Death of partner (1)
4. Securities Premium received at the time of issue of shares can be utilised by the company for:
(a) Issue of bonus shares (b) To Write off preliminary expenses(c) To write off discount on issue of shares (d) all of the above (1)
5. What rate of interest is to be paid for amount received as calls in advance ?(a) 5 % p.a (b) 6 % pa. (c) 8 % p.a (d) 10 %p.a (1)
6. A, B and C are partners in a firm. When the Accounts were closed on 31st March,2012, it was found that Interest on Capital was allowed @ 4% instead of 6%p.a.The capitals of partners were: A Rs.1,00,000 B Rs.80,000 C Rs.60,000 (3)Give the necessary adjusting entry with proper workings.
7. On 1st January, 2015 R Ltd has Rs. 50,000 as Debenture Redemption Reserve.The company has to redeem its 12% Debentures at the end of 2015 worthRs.900000. Pass journal entries to record the redemption of debentures. (3)
8. Pass necessary journal entries of ‘Issue of debentures’ for the following:(i) S Ltd issued 150, 15% Debentures of Rs 100 each at a discount of 10%redeemable at a premium of 10%.(ii) J Ltd issued 600, 9% Debentures of Rs. 100 each at a premium ofRs 10 per Debenture, redeemable at par. (3)
9. Anand and Sonu were childhood friends and colleagues in a company who werethinking of starting something of their own someday. On 1st Jan, 2011 they thought of starting a stationery depot for the financially backward children of their area. They also admitted Manoj a differently abled educated youth who was unemployed as a partner of their firm without any capital contribution. Sonu also approached Rohit Kaul from Jammu, who was also eager to start something of this sort having lot of funds at his disposal, and persuaded him to join them.The following terms were agreed upon:i) Anand, Sonu and Rohit will contribute 30,000; 50,000 and 4,00,000 respectively as capital.ii) Profit will be shared equally.iii) Interest on capital will be allowed @ 5% p.a.The Profits of the firm for the year ended 31st Dec 2014 were 50,000.a) Identify any two values which according to you motivated them to startthe partnership firm. (2)b) Prepare Profit & Loss Appropriation Account of the firm for the yearending 31st Dec 2014. (2)
10. R Ltd. purchased a running business from P Ltd for a sum of Rs.12,00,000 payable by issue of 5% Debentures of Rs.10 each at a premium of Rs. 2 per debenture.The Assets and liabilities were following:Plant 4,00,000Furniture 2,00,000Building 4,00,000Stock 3,00,000Sundry Creditors 1,00,000Record necessary Journal entries in the books of R Ltd. (4)
11. Janata Ltd. forfeited 1,500 shares of Rs. 10 each at a premium of Rs. 2 each due to non-payment of First call of Rs. 3. The final call of Rs. 2 is not yet made. Out of these 900 shares were re-issued at Rs. 6, Rs. 8 called up. Fill the necessary amounts to complete the journal entries (4)
Date Particulars LF Dr Amt Cr Amt
1 Share Capital A/c Dr. To Shares Forfeited A/c To Calls in arrears A/c(Being 1500 shares forfeitedDue to non-payment of First Call of Rs.3)
--------
2 Bank A/c Dr. To Shares Forfeited A/c Dr. To Share Capital A/c(Being Reissue of 900 shares @Rs6,Rs.8 called up)
----------
3 Shares Forfeited A/c Dr. To Capital Reserve A/c(Being balance in Forfeited Shares
----------
Account transferred to Capital Reserve)
12. X, Y and Z were partners in a firm. Their capitals were Rs.1,00,000; Rs.2,00,000 and Rs.2,50,000. Their agreement provided the following:(i) The profit sharing ratio will be 1:2:2(ii) X is being guaranteed a share of Profit Rs.50,000(iii) Y will be allowed a salary of Rs.12,000 p.a.(iv) Interest on capital will be allowed @ 12% p.a.The interest on drawings were Rs.500, Rs.600, and Rs. 800 for X,Y and Z. The firmearned a profit of Rs.2,88,900 during the year.Prepare profit & loss appropriation account and show the workings. (6)
13. Archana, Bindu and Charu were partners sharing profits in the ratio of 3:2:1. Their Balance Sheet as on 1st April 2014 was:
Liabilities Amount Assets AmountCreditors 20,000 Cash 20,000
General Reserve 30,000 Debtors 18,000
Capitals:Archana 1,00,000Bindu 70,000Charu 70,000 ---------------- 2,40,000
Stock 60,000
Furniture 52,000
Land & Building 1,40,000
Total 2,90,000 2,90,000
Bindu Died on the above date and the executors were paid in the following manner:a) Bindu’s Share of Goodwill was Rs. 6,000;b) A provision for doubtful debts@ 5% was to be made on debtors;c) Land & Building were to be depreciated by 5% and Stock was valued at Rs. 61900.d)Share of Profit is to be given on the basis of last years profit which is Rs. 6000.e) Interest on capital is to be given @ 6% p.a.
Prepare Bindu’s capital a/c to be rendered to her executor. (6)
14. L, M and N were partners sharing profits and losses in the ratio of 5:3:2. On 31st Dec 2014 their Balance Sheet was as under:
Liabilities Amount Assets AmountCapitals: Property 1,20,000
L 1,50,000M 1,25,000N 75,000 ------------- 3,50,000Workmen’s CompensationFund
30,000 Patents 30,000
Creditors 1,50,000 Machinery 1,50,000
Stock 1,90,000
Bank 40,000
Total 5,30,000 5,30,000
N retired on 31st March 2015 and it was agreed that:(i) Goodwill of the firm is to be valued at Rs.1,75,000.(ii) Machinery be valued at Rs.1,40,000; Patents at Rs.40,000 and Property at Rs.1,50,000
on this date.(iii) For the purpose of calculating N’s share in the profits of 2015, the profits should be taken
to have accrued on the same scale as in 2014, which was Rs.60,000.Prepare N’s Capital Account and Revaluation Account. (6)
15. Riya and Priya are partners, who share profit in the ratio of 3:2. Following is theBalance sheet as on March 31, 2015.
Liabilities Amount Assets AmountRiya’s Capital 32500Priya’s Capital 11500 ----------- 44,000
Cash at Bank 40,500
Sundry Creditors 48,000 Stock 7,500
Reserve Fund 13,500 Debtors 21,500Less: PDD: 500 -------------- 21,000
Fixed Assets 36,500
Total 1,05,500 1,05,500
The firm was dissolved on March 31, 2015.Close the books of the firm with the following:a) Debtors realized at a discount of 10%b) Stock realized at Rs. 7,000c) Fixed assets realized at Rs. 40,000d) Realisation expenses of Rs. 1,500 paid by Riya
e) Creditors were paid 10% less. Prepare necessary ledger accounts. (8)OR
A & B are partners sharing in the ratio 3:2 and their Balance Sheet is as follows:Liabilities Amount Assets AmountCreditors 3600 Cash 1000
Bills Payable 2000 Debtors 3400
General Reserve 2400 Stock 2400
Capitals:A 15 000B 8 000 23 000
Machinery 4200
Building 20000
31000 31000
The other terms of agreement on C’s admission were as follows:C will bring Rs. 10000 as Goodwill and Rs15000 as Capital.
a) Building will be valued at Rs. 18500 and Machinery at Rs. 5000.b) A provision of 5% will be created on Debtors for Bad Debts.c) Capital Accounts of A and B will be adjusted as per C’s Capital. His profit sharing ratio is ¼ in the new firm. d) Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of new firm of
A,B& C. (8)
16. Creative Ltd issued Rs.10,00,000 divided into Rs.10 shares at a premium @ 20% per share, payable as under:On Application Rs.3 per shareOn Allotment Rs.5 per share(including premium)On First and Final Call BalanceOver payments on application were to be applied towards sums due on allotment. Where no allotment was made, money was to be refunded in full.The issue was oversubscribed to the extent of 1,20,000 shares. Applicants for 10,000 shares were sent letters of regret. Shares were allotted in full to the remaining applicants.All the money due was duly received except on 1000 shares held by Arun, who failed to pay the
allotment and calls money and his shares were forfeited.(a) Which value has been affected by rejecting the applications of the applicants who had
been sent letters of regret? Suggest a better alternative for the same.(b) Give Journal Entries to record the above transactions in the books of the company.
(8)
ORR Ltd invited application for issuing 70,000 shares of Rs.10 each at par. The amount was payable as follows:On Application Rs.2 per shareOn Allotment Rs.3 per share
On First & Final Call Rs.5 per shareApplications were received for 97,000 shares. Allotment was made on the following basis: (i) To applicants for 45,000 shares – Full(ii) To applicants for 50,000 shares – 50%(iii) To applicants for 2,000 shares – nil.
All the money due were received in full except for 300 shares on which First & Final Call money was in arrears.
(a) Which value has been affected by the rejection of application of category (iii) applicants? suggest a better alternative for the same.
(b) Pass journal entries in the books of R ltd to record the above transactions. (8)
PART ‘ B’
17. X Ltd has a Current Ratio of 2:1. If the money is collected from debtors, will the ratio increase, decrease or will not change? (a) Increase (b) decrease (c) no change (d) can’t say (1)
18. Payment of dividend to shareholders is what type of activity?(a) Financing activity (b) Investing activity (c) Operating activity (d) none (1)
19. Interest received by a Financing company will result in inflow, outflow or no flow.
(a) Inflow (b) outflow (c ) no flow (d) can’t say (1)
20. List the items which are shown under the heading, “Non-Current Assets” in theBalance sheet of a company as per provisions of Schedule VI, of the CompaniesAct 1956. (3)
21. Prepare a Comparative Statement of Profit & Loss with the following information:(4)
31st March, 2014 31st March, 2015Revenue from operation 10 00 000 12 50 000Cost of Material Consumed 5 00 000 6 50 000Other Expenses 50 000 60 000
Interest on Investment @ Rs. 30 000 each year.
22. (a) Find the value of Opening inventory when Closing inventory is 15,000 more than Opening inventory. Inventory Turnover Ratio is 6 times and cost of revenue is 3,00,000.
(b) A business has a current ratio of 4 : 1 and a Quick Ratio of 1.2 : 1. If the working capital is Rs. 1 80 000, calculate the total current assets and Inventory.
(2 + 2=4)
23. From the following summarized balance sheet of a company, prepare a cash flow statement.Particulars Note No. 31.3.2015 31.3.2014
I. EQUITY AND LIABILITIES:Shareholder’s Fund:Share Capital 65 000 45 000Reserve & Surplus 1 42 500 25 000Current Liabilites:Trade Payables 11 000 8 700Total 1 18 500 78 700
II. ASSETS:NON- CURRENT ASSETS:Fixed Assets 83 000 46 700Current Assets:Inventory 13 000 11 000Trade Receivables 20 000 19 000Cash & Cash Equivalents 2 500 2 000Total 1 18 500 78 700Notes to Accounts: 31.3.2014 31.3.2015
(1) Reserve & SurplusGeneral Reserve 27 500 15 000Profit and Loss Balance 15 000 10 000
--------- ---------42 500 25 000
Additional Information:(i) Depreciation charged during the year amounted to Rs. 14 700. (ii) An Interim Dividend paid during the year amounted to Rs. 7 000. (6)
Group C
KENDRIYA VIDYALAYA SANGATHAN, PATNA REGION
MODEL QUESTION PAPER
CLASSS:- XII COMM. SUBJECT:- ACCOUNTANCY
TIME ALLOWED:- 3 HOURS+ 15MINUTES MM- 80
General instructions:-
i. All questions are compulsoryii. Attempt all parts of a question together.
1. Anant, Gulab and khushbu were partners in a firm sharing profits in the ratio of 5:3:2. From 01.04.2014, they decided to share the profits equally. For this purpose the goodwill f the firm was valued at Rs.2,40,000.Pass necessary journal entry for the treatment of goodwill on change in the profit sharing ratio of Anant, Gulab and Khushbu. [1]
2. In the absence of partnership Deed, what is the rule relating to interest on partner’s loan? [1] a. Interest @.10 %p.a b. Interest @ 15%p.a c. Interest @ 6% p.a. d.Interest @ 16% p.a.
3. What are the circumstances in which the capital balances of the partners fluctuate, when the capitals are fixed? [1]a. on admission b. on retirementc. on introducing new capital.d. when capital becomes more than 5 lakh
4. The balance of Debenture Redemption reserve is finally transferred to :-[1]a.Capital Reserve Accountb.Specific Reserve Accountc.General Reserve Accountd.None of these
5. Geeta, Sunita and Anita were partners in a firm sharing profits in the ration of 5:3:2. On 1.1.2015 they admitted Yogita as a new partner for 1/10th share in the profits. On Yogita’s admission, the Profit and loss A/c of the firm was showing a Debit balance of Rs.20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, sinita and Anita in their profit sharing ratio. Did the accountant give correct treatment? Give reason in support of your answer. [1]
6. Give the meaning of forfeiture of shares. [1]7. What are the provisions regarding utilization of securities premium according to
Sec.78 of Co. Act 1956. [3]
8. Capital invested in a firm is Rs.3,00,000. Normal rate of return is 10%. Average profits of the firm are Rs.41,000 (after an abnormal loss of Rs.2,000). Calculate goodwill at five times the super profit. [3]
9. On 1st April, 2012, Janta Ltd. Was formed with an authorized capital of Rs.50,00,000 divided into 10,000 equity shares of Rs.50 each. The company issued prospectus inviting applications for 90,000 shares. The issue was payable as under:-
On Application: Rs.15On Allotment: Rs.20 and on Call: Balance amount.The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year. Show the following:i. Share capital in the Balance Sheet of the company as per revised Schedule- VI,
Part-I of the Companies Act, 1956.ii. Also prepare ‘ Notes to Accounts’ for the same. [3]
10. Madan, Pradeep and Mohit are sharing profits and losses in the ratio of 5:3:2. They decide to share future profits and losses in the ratio of 2:3:5 with effect from 1st April,2012. They also decide to record the effect of the following accumulated profits and losses and reserves without affecting their book figures by passing a single entry.
General reserve- Rs.12,000.Profit and Loss A/c- Rs.48,000Advertisement Suspense A/c- Rs.24,000Pass the necessary single adjusting entry [3]11. A, B and C are partners sharing profits in the ratio of 5:3:2. their Balance Sheet as on
march 31st, 2013 was as follows: [4]
Liabilities Amount Assets Amount CreditorsEmployees Provident FundCapitals:A- 1,00,000B- 70,000C- 50,000
20,000
26,000
2,20,000
CashDebtorsStockFurniture Building
16,00016,00080,00034,000
1,20,000
2,66,000 2,66,000C retired on the above date and it was agreed that:
i. C’s share of Goodwill was Rs.8,000;
ii. 5% provision for doubtful debts was to be made on debtors; iii. Sundry creditors were valued Rs.4,000 more than the book value.
Pass necessary journal entries for the above transactions on C’s retirement.12. Prem, Param and Priya were partners in a firm. Their fixed capitals were Prem Rs.
2,00,000; Paaram Rs. 3,00,000 and Priya Rs.5,00,000. They were sharing profits in the ratio of their capitals. The firm was engaged in the sale of ready- to eat food packets at three different locations in the city, each being managed by Prem, Param and Priya. The outlet managed by Param and Priya. Prem requested Param and Priya for a higher share in the profits of the firm which Param and Priya accepted. It was decided that the new profit sharing ratio will be 2:1:2 and its effect will be introduced retrospectively for the last four years. The profits of the last four years were Rs.2,00,000; Rs.3,50,000; Rs. 4,75,000 and 5,25,000 respectively. Showing your calculations clearly, pass a necessary adjustment entry to give effect to the new agreement between Prem, Param and Priya. [4]
13. Pass necessary journal entries for the following transaction on the dissolution of the firm:-:-[6]
i. Sudha a partner agreed to pay off her husband’s loan Rs.19,000.ii. Sundry creditors of Rs.10,000 were paid at 5% discount.iii. Expenses of realisationRs.2,000 paid by partner Q.iv. Bank loan Rs.12,000 was paid.v. Profit on realization Rs.36,000 was distributed between P and Q in 5:4.vi. Firm had to pay outstanding salaries Rs.7,200, which were earlier not recorded.14. Mona, Nisha and Priyanka are partners in a firm. They contributed Rs.50,000 each as
capital three years ago. At that time Priyanka agreed to look after the business as Mona and Nisha were busy. The profits for the past three years were Rs.15,000, Rs.25,000 and Rs.50,000 respectively. While going through the books of accounts, Mona noticed that the profit had been distributed in the ratio of 1:1:2. When she enquired from Priyanka about this, Priyanka answered that since she looked after the business she should get more profit. Mona disagreed and it was decided to distribute profit equally retrospectively for the last three years. [6]
(a). You are required to make necessary corrections in the books of accounts of Mona, Nisha and Priyanka by passing an adjustment entry.
(b). Identify the value which was not practiced by Priyanka while distributing profits. 15. Fill in the missing information in the following journal entries:- [6]
Journal of X Ltd.DATE PARTICULARS L.F
.AMT.(DR.) AMT.(CR.)
Own Deb. A/c……………….Dr. To Bank A/c(2,000 own debentures of Rs.100 each puraachased at Rs…………..each for immediate cancellation)
-------------------
9% Deb. A/c…………Dr. To …………………………A/c To …………………………A/c(cancellation of own Deb.)
---------1,88,000---------
……………………………A/c Dr. To …………………. Reserve A/c( Profit on redemption transferred to ………… Reserve A/c)
-------------
16. Record the journal entries for forfeiture and reissue in the following cases:(a). X Ltd. Forfeited 60 shares of Rs.10 each, Rs.7 called up on which the shareholder had paid application and allotment money of Rs.5 per share. Out of these, 45 shares were re-issued to Naresh as Rs.7 paid up for Rs.8 per share.(b). Y Ltd. Forfeited 300 shares of Rs.10 each, Rs.8 called up, issued at a premium of Rs.2 per share to ‘R’ for non-payment of allotment money of Rs.5 per share including premium. Out of these, 210 shares were re-issued to Sanjay as Rs.8 called up for Rs.10 per share fully paid up. (c). Z Ltd. Forfeited 900 shares of Rs.10 each issued at a premium of Rs.3 per share to R for non-payment of first and final call of Rs.3 per share fully paid up. All the share were reissued @ Rs. 3 per share fully paid-up. (d). P Ltd forfeited 200 shares of Ravi of Rs.10 each Rs.8 called-up., on which he paid application and allotment money of Rs.3 per share. Out of these, 100 shares were reissued as fully paid-up for Rs. 8 per share. [8] Or Sangita Ltd. Invited applications for issuing 60,000 shares of Rs.10 each at par. The amount was payable as follows:On Application Rs.2 per share On allotment Rs.3 per shareOn First and Final Call Rs.5 per shareApplications were received for 92,000shares . Allotment was made on the following basis:(i). To applicants for 40,000 shares – Full(ii). To applicants for 50,000 shares – 40%.(iii). To applicants for 2,000 shares – nil.Rs.1,08,000 was realized on account of allotment (excluding the amount carried from application money) and Rs.2,50,000 on account of call.The directors decided to forfeit shares of applicants belonging to category (i) on which allotment money was overdue. Give journal entries to record the above transactions in the books of the company.
17. A,B and C are partners sharing profits and losses in the ratio 2:3:5. On 31st March, 2011 their Balance Sheet was as follows:- [8]
Liabilities Amount Assets Amount
Capitals:- Sudha: 36,000 Rahim: 44,000 Kartik: 52,000CreditorsBills PayableP & L A/C
1,32,00064,00032,00014,000
CashBills ReceivableFurnitureStockDebtorsInvestments Machinery Goodwill
18,00024,00028,00044,00042,00032,00034,00020,000
2,42,000 2,42,000They decided to admit ‘D’ their visually challenged and unemployed friend into partnership. They admit D into partnership on the following terms.i. Furniture, Investments and Machinery are to be depreciated by 15%.ii. Stock is revalued at Rs.48,000.iii. Goodwill is to be valued at Rs.24,000.iv. Outstanding Rent amounted to Rs.1,800.v. Pre-paid Salaries Rs.800.vi. D will bring Rs.32,000 towards capital for 1/6th share and partners to readjust
their capital accounts on the basis of their profit-sharing ratio.vii. Adjustment of capitals will be made by cash.
Prepare Revaluation account, Partners’ Capital accounts after D’s admission. Identify the values highlighted in the question.
Or The Balance Sheet of Sudha, Rahim and Kartik who were sharing profits in the ratio of 3:3:4 as on 31st March,2012 was as follows:
Liabilities Amount Assets Amount General ReserveBills PayableLoanCapitals:- Sudha: 60,000 Rahim: 50,000 Kartik: 40,000
10,0005,000
12,000
1,50,000
CashStock Investments Land & BuildingSudha’s Loan
16,00044,00047,00060,00010,000
1,77,000 1,77,000
Sudha died on June 30th 2012. The partnership deed provided for the following on the death of a partner:
a. Goodwill of the firm be valued at two years purchase of average profits for the last three years.
b. Sudha’s share of profit or loss till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2012 amounted to Rs.4,00,000 and that from 1st April to 30th June 2012 to 1,50,000. The profit for the year ended 31st March, 2012 was Rs.1,00,000.
c. Interest on capital was to be provided @ 6% p.a.d. The average profits of the last three years were Rs.42,000.e. According to Sudha’s will, the executors should donate her share to “Matri Chhaya- an
orphanage for girls”.f. Prepare Sudha’s Capital Account to be rendered to her executor. Also identify the value
being highlighted in the question.
PART-B (FINANCIAL STATEMENT ANALYSIS) 18. The prescribed form of the Balance Sheet for the companies has been given in the
schedule:- [1]a).Medium range, (b). VII, Part I, (c). VI, Part I, (d). None of t he above.
19. . Proposed dividend is a :- [1] (a). provision, (b). surplus, (c). Non-current Liabilities(d). Long-term Loan.
20. Under which sub-headings will the following items be place in the Balance Sheet of a Co. as per revised Schedule VI part I of the companies Act,1956: [4]
i. Loose tools, ii. Bonds, iii. Loans repayable on demand, iv. Provision for warranties, v. unclaimed dividend, vi. Capital Redemption Reserve, vii. Mining rights and viii.Proposed dividend.
21. From the following statement of Profit and Loss of Green view Ltd. For the year ended 31st March, 2013, prepare a Comparative Statement of Profit and Loss: [4]
Particulars Note No. 2013-14 2012-13Revenue from operations 8,00,000 6,00,000Other incomes 1,00,000 50,000Expenses 5,00,000 4,00,000
Rate of income tax was 40%
22. (a). From the given information, calculate the inventory turnover ratio.
Revenue from Operations: Rs.2,00,000; GP: 25% on cost; Inventory at the beginning is 1/3rd of the inventory at the end which was 30% of revenue from operations
(b). A business has current ratio of 3:1 and a quick ratio of 1.2:1. If the working capital is Rs.1,80,000, calculate the total current assets and value of Inventory. [4]
23. Prepare a Cash flow Statement on the basis of the information given in the Balance Sheet of Simco Ltd. As at 31.03.2014 and 31.03.2013. [6]
Particulars Note No.
31-03-2014 31-03-2013
I. EQUITY AND LIABILITIES1. Shareholders’ Funds:
a. Share Capitalb. Reserves and Surplus
2. Non-Current Liabilities:Long-term borrowings
3. Current Liabilities:Trade Payables
12,00,00090,000
87,500
10,000
1,50,00075,000
87,500
76,000TOTAL 3,88,500 3,88,500
II. ASSETS:1. Non-Current Assets:
a. Fixed AssetsTangible Assets
b. Non-current Investments2. Current assets;
a. Current Investments(Marketable)b. Inventoriesc. Trade receivablesd. Cash and Cash Equivalents
1,87,5001,05,500
12,50040009,500
68,500
1,40,0001,02,500
33,5005,500
23,00084,000
TOTAL 3,88,500 3,88,500Notes to Accounts:-
Note 1
Particulars 2014 2013Reserves and SurplusSurplus(Balance in Statement of Profit & Loss) 90,000 75,000
Group D
MODEL TEST PAPERCLASS- XIITH SUB-AccountancyTIME- 3Hrs M.M.- 80Q1- In the absence of partnership deed interest on capital is allowed at.
Q2- Somesh and Ramesh
are partners in a firm with capitals of Rs. 3,00,000 and 4,00,000 respectively. They do not have a Partnership Deed. Ramesh wants to share the profits in the ratio of capitals. State with reasons whether the claim is valid?
Q3- In the event of death of a partner, the amount of General Reserve is transferred to partners capital A/c in.
a) New profit sharing ratio, b) Old profit sharing ratio c) Capital ratio d) Gaining ratio
Q4- A, B and C are partners sharing profits in the ratio of 3:2:1 .on 1 st April, 2014 , they decided to share the profits equally. On that date, there was a credit balance of Rs, 1,20,000 in their Profit and Loss Account and a balance of Rs 60,000 in the General Reserve. Pass Necessary Journal entry in the books of the firm. The partners decided to distribute the profits and the General Reserve before the change in profit sharing ratio.
Q5- What is Reserve Capital?Q6- If a share of Rs 10 on which Rs 8 has been called-up only on the
company being wound upis called .a) Rs. 10 b) Rs. 8 c) Rs. 6 d) Rs. 2
Q7- If the loss on reissue of shares is less than the amount forfeited, the surplus is transferred to .
a)Capital Reserve b) An Assetc) Revenue reserveQ8- Rakesh and Mahesh are partners in a firm. Mahesh suggests to Rakesh
that the firm should adopt two children from economically weaker sections of the society and sponsor their education. Rakesh agrees to the suggestion. The firm identifies a girl and a boy and undertakes their education cost. What value has been fulfilled by them?
Q9- As a Director of a company you had invited applications for 30,000 Equity Shares oif Rs. 10 each at a premium of Rs. 2 each . The total
a)
8% p.a.
b)
6%p.a. c) 12%p.a.
d) No interest
application money received @ Rs 2 per share was Rs 72,000. Name the kind of subscription. List the three alternatives for allotting these shares.
Q10- X, Y and Z are partners in a firm sharing profits in 2:2:1 ration . The fixed capitals of the partners were: X Rs 5,00,000; Y Rs . 5,00,000 and Z Rs 2,50,000 . The Partnership Deep provides that interest on capital should be allowed @ 10%p.a. and that Z should be allowed a salary of Rs 2,000 per month. The profits of the firm for the year ended 31st
March, 2014 after debiting Z’S salary were Rs 4,00,000 . Prepare profit and Loss Appropriation Account.
Q11- A company issued 10,000 shares of the value of Rs, 10 each, payable Rs 3 on application, Rs 3 on allotment and Rs.4 on the first and final call. All amounts are duly received except the call money on 100 shares. These shares are subsequently forfeited by Directors and are resold as fuly paid for Rs 500. Give necessary journal entries for the transactions.
Q12- Tata Businesses Ltd. Has made a public issue of 10,00,000 Equity Shares of Rs.10each. The issue is over-subscribed by 100 percent. The company decides to reject applications for 5,00,000. Equity shares, allot 2,50,000 Equity shares to applicants of 7,50,000 shares and make full allotment to the remaining applicants. Has the company, in your opinion, not ignored any value?
Q13- P,Q and R were partners in a firm sharing profits in 2:2:1 ratio. The Partnership Deed provided that on the death of a partner his executors will be entitled to the following:
a) Interest on Capital@ 12% p.a.b) Interest on Drawings @ 18% p.a.c) Salary of Rs 12,000 p.a.d) Share in the profit of the firm (up to the date of death) on the basis of
previous year’s profit. P died on 31st May, 2012. His capital was Rs 80,000. He had withdrawn Rs 15,000 and interest on his drawings was calculated as Rs 1,200. Profit of the firm for the previous year ended 31st March, 2012 was Rs.30,000. Prepare P’s Capital A/c to be rendered to his executors.
Q14- A and B had been sharing profits andlosses equally. After dividing the profits for the year 2013-14 Rs. 60,000, it was agreed that they would share profits and losses from 1st April, 2013 in the ratio of 3:2. At that time it was also found that while preparing accounts for 2013-14, interest on capital @5% p.a. was ignored. The fixed capital of A and B were Rs. 1,00,000 and Rs. 80,000 respectively. Pass a single adjustment entry to adjust the accounts of the partners.
Q15- Give journal entries in each of the following alternative cases assuming the face value of a debenture being Rs. 100.
a) A 10% debenture issued at Rs. 100, repayable at Rs 100.b) A 10% debenture issued at Rs. 95, repayable at Rs 100.c) A 10% debenture issued at Rs. 105, repayable at Rs 100.d) A 10% debenture issued at Rs. 100, repayable at Rs 105.e) A 10% debenture issued at Rs. 95, repayable at Rs 105.f) A 10% debenture issued at Rs. 105, repayable at Rs 110.
Q16- Mohan, Sohan and Rohan were partners in a firm sharing profits in the ratio of 2:2:1. On 28th February, 2004 their firm was dissolved. The Balance Sheet of the firm at the date of dissolution was :Liabilities Rs. Assets Rs.Creditors 80,000 Cash 7,000Mohan’s Capital 75,000 Sundry Assets 1,30,00
0Sohan’s Capital 5,000 Rohan’s Capital 23,000
1,60,000
1,60,000
Sundry Assets were taken over by Rohan for Rs. 65,000 and Mohan took over the Creditors for Rs. 75,000 . Expenses of dissolution paid by Sohan were Rs. 5,000. Prepare Realisation Account, Partners Capital A/c and Cash A/c.
Q17- X, Y and Z are partners sharing profits and losses in the raio of 7:5 :4, Their Balance Sheet as at 31st March, 2014 stood as:Liabilities Rs. Assets Rs.Capital A/c Sundry Assets 7,00,00
0X 2,10,000Y 1,50,000Z 1,20,000 4,80,00
01,60,000
General Reserve 65,000Profit & Loss A/c 25,000Creditors 1,30,00
07,00,000
7,00,000
Q18- The Balance Sheet of a partnership firm of X and Y, who were sharing profits in the ratio of 5:3 respectively, as at 31st March, 2012 was as follows:Liabilities Rs. Assets Rs.Creditors 25,000 Cash at Bank 11,200Gerneral Reserve
20,000 Bills Receivable 12,800
Capital A/c Debtors 20,000X 75,000 Stock 35,000Y 60,000 1,35,00
0Furniture 21,000
Machinery 30,000Building 50,000
1,80,000
1,80,000
On the above date, Z was admitted on the following terms:a) Z was to get 1/5th Share in the profits.b) Z was to pay Rs 50,000 as capital and Rs 16,000 for his share of
Goodwill.c) Machinery was to be depreciated by 10% and Building was to be
appreciated by 20%.d) Stock was valued at 25% above cost. It was to be brought into the
books of the new firm at cost price.e) There was a liability for repairs to Furniture amounted to Rs. 600 , the
same was to be recorded in the books.f) Capital Accounts of the old partners were to be adjusted in the new
profit sharing ratio by opening the necessary current accounts. Prepare Revaluation Account, capital account and the intial balance sheet of the new firm.
Q19- Messers Accountancy Publications Ltd. Issued 50,000 Equity shares of Rs. 10 each at a premium of 10% payab le as under: on application Rs.2 , on allotment Rs. 5, on first Cal Rs 2, on final call Rs. 2 , The whole of the issue was called for by the company and all the money was duly received except the allotment and call money on 500 shares. These shares were, therefore. Forfeited and later on reissued @ Rs. 9 per share as fully paid. Pass necessary journal entries to record the above transactions.
PART-B
Q20 under what heads and sub-heads will you show the following items in the Balance Sheet of a company as per Schedule-VI, Part-1 of Indian Companies Act, 1956?
a) Securities Premium Reserveb) Balances with bankc) Bills Receivabled) Goodwill
Q21- From the following Statement of profit and loss of Earth Ltd. For the years ended 31st March 2015 and 2014, prepare common size statement of Profit and Loss.
Particulars N.no.
31/3/15 31/3/14
i) Revenue from Operation 40,00,000
35,00,000
ii) Other income 2,00,000 1,00,000iii) Total Revenue (I+II) 42,00,00
036,00,000
iv) Expenses:Cost of Materials consumed 15,00,00
012,00,000
Changes in inventories of FG and W.I.P.
2,00,000 1,00,000
Employees Benefit Expenses 5,00,000 4,00,000 Other Expenses 3,00,000 2,10,000
Total Expenses 25,00,000
19,10,000
v) Profit before tax (III-IV) 17,00,000
16,90,000
Additional information other expenses include provision for tax of Rs. 1,10,000 for the year ending 31st March 2014 and Rs. 1,50,000 for the year ending 31st March, 2015.
Q22- From the details given below, calculate any two of the following rations; (a0 Current Ration (b) Quick Ratio (c) Working Capital turnover Ratio.
Information Amt. (Rs.)
Information Amt. (Rs.)
Trade Receivables 4,00,000
Bills Payable 80,000
Inventory 1,60,000
Creditors 1,60,000
Marketable Securities 80,000 Debentures 2,00,000
Cash and Cash Equivalents
1,20,000
Expenses Payable 1,60,000
Prepaid Expenses 40,000 Revenue from Operations
20,00,000
Q23- Prepare a Cash Flow Statement from the following Balance Sheet:Particulars N.no
.31/3/13 31/3/12
i Equity and Liabilitiesa) Shareholder Funds
a) Share Capital 6,00,000
5,00,000
b) Reserves and Surplus
1 4,00,000
2,00,000
b) Current Liabilitiesa) Trade Payable 2,80,00
01,80,000
Total 12,80,000
8,80,000
Ii Assetsa) Non –current Assets
a) Fixed AssetsPlant and Machinery 5,00,00
03,00,000
b) Current Assetsa) Inventories 1,00,00
01,50,000
b) Trade Receivables 6,00,000
4,00,000
c) Cash & Cash Equi. 80,000 30,00012,80,000
8,80,000
Notes to Accounts
Particulars 2013 20141 Reserves and Surplus
Surplus i.e. balance in the statement of profit and loss.
4,00,000
2,00,000
Additional information:1) An old machinery having book value of Rs. 50,000 was sold for 60,000.2) Depreciation provided on Machinery during the year was Rs. 30,000.
Group E
KENDRIYA VIDYALAYA, SANGATHAN, PATNA REGION
MODEL QUESTION PAPER
Class:- XII Comm. Subject- Accountancy
Time allowed – 3 Hours + (15 Minutes to read the question paper) MM-80
General instructions:-
i. This question paper contains three parts A and B.ii. Both parts are compulsory for all candidates.iii. All parts of the questions should be attempted at one place.
PART A(PARTNERSHIP AND COMPANY)
Q1. What do you mean by partnership deed? 1Q2. What preferential right a preference share holder get over equity share holder? 1Q3. P ,Q and R are partners. Q retired from the firm and decided to transfer his claim to Nepal earthquake relief fund. What value is fulfiied here? 1
Q4. Which type of company are exempted for creation of debebture redemption reserve(DRR):-i) Infrastructure companyii) Banking companyiii) A private companyiv) None of these 1
Q5. A company issued 200 shares @ Rs. 10 to Star furniture house for the purchase of furniture worth Rs. 2,200. Pass journal entries. 1
Q6. Neha, nikita and nandini are partners in a firm which prepares toys by recycling unused papers and plastics. Their profit sharing ratio is 5:3:2. Nikita lost his husband in a car accident leaving her with a new born girl child. Neha and Nandini decided to share an guaranteed profit to Nikita of Rs.10,000. Profit for the year ended 31st mar 2015 is Rs. 30,000.
i) What amount of profit Neha and Nandini will get?ii) Identify the value mention in this question? 3
Q7. X and Y are partners in 4:1. They admitted Z for 1/5th share in profit. Z bring capital of Rs.40,000 but could not bring any amount for his share of goodwill. The capital of X and Y are Rs. 80,000 and 60,000 respectively.
Pass necessary journal entries . 3
Q8. Tom, Dick and Harry are partner in 5/10:3/10:2/10. After distribution of profit at the end of the year they came to know that they had charged interest on drawing 10% p.a instead of 5% p.a.
now pass an adjustment entry to rectify it. 3
Q9. On 1st April, 2014, sugandha Ltd. Was formed with an authorized capital of Rs.50,00,000 divided into 10,000 equity shares of Rs.50 each. The company issued prospectus inviting applications for 90,000 shares. The issue was payable as under:-
On Application: Rs.15On Allotment: Rs.20 and on Call: Balance amount.The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year. Show the following:iii. Share capital in the Balance Sheet of the company as per revised Schedule- VI,
Part-I of the Companies Act, 1956.iv. Also prepare ‘ Notes to Accounts’ for the same. 4
Q10. Maniram and Dhaniram are partners with capitals of Rs.15,00,000 and Rs. 10,00,000respectively. They agree to share profits in the ratio of 3:2. Show how the followingtransactions will be recorded in the capital accounts of the partners in case:
(i) the capitals are fixed, and (ii) the capitals are fluctuating. The books are closedon March 31, every year.Particulars Maniram Dhaniram
(Rs.) (Rs.)Additional capital contributed 3,00,000 2.00,000on July 1, 2005Interest on capital 5 % 5 %Drawings (during 2005) 30,000 20,000Interest on drawings 1,800 1,200Salary 20,000Commission 10,000 7,000Share in loss 60,000 40,000for the year 2005 6
Q11. Pass necessary journal entries for the following transaction in the book of GH ltd:-
i) issued 5,000 12% debenture of face value of Rs.100 each, redeemable at Rs. 110ii) issued 6,000 10% debenture @ Rs.95(face value Rs.100), redeemable at Rs.100iii) issued 3,000 9% debenture Rs.95 (face value Rs.100),redeemable at Rs. 110 4
Q12. A Banking company had 1,00,000 12% debentures @ Rs10 as on 31.12.2014. the company decided to redeem the debentures in the following way:-
i) 50% of the debentures were redeemed out of profit.ii) 50% of the debentures were redeemed by way of purchasing it from the open
market @92% of it face value.Pass journal entries of redemption. 4
Q13. Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires fromthe firm. On his date of retirement, Rs. 60,000 becomes due to him. Amrinderand Joginder promise to pay him in instalments every year at the end of theyear. Prepare Mahinder’s Loan Account in the following cases:1. When payment is made four yearly instalments plus interest @ 12% p.a.on the unpaid balance.2. When they agree to pay three yearly instalments of Rs. 20,000 includinginterest @ 12% p.a on the outstanding balance during the first three yearsand the balance including interest in the fourth year. 6
Q14..Iqbal and Kapoor are in partnership sharing profits and losses 3:2. They insure their lives jointly for Rs. 75,000 at an annual premium of Rs. 3,400 to be debited to the business. Kapoor dies three months after the date of the last Balance sheet. According to the partnership deed, the legal personal representatives of Kapoor are entitled to the following paymentsHis capital as per the last Balance Sheet.Interest on above capital at 3% p.a. to date of death.His share of profits to date of death calculated on the basis of last year’s profits.Profit on revaluation of fixed asset only.His drawings are to bear interest at an average rate 2% on the amount irrespective of the period.Assets revalued asItems S. Creditors Land Buildings DebtorsExisting value 50,000 45,000 50,000 30,000Revalued value 40,000 60,000 45,000 32,000
The net profits for the last three years, after charging insurance premium, were Rs. 20,000, Rs 25,000 and Rs. 30,000 respectively . Kapoor’s capital as per Balance Sheet was Rs 40,000 and his drawings to the date of death were Rs. 5,000Draw Kapoor’s account to be rendered to his representatives. 6
Q15.Value Added Ltd issued Rs. 10,00,000 new capital divided into Rs.100 shares at a premium of Rs.20 per share, payable as under:On application Rs.10 per shareOn Allotment Rs.40 per share (including premium Rs. 10 per share)On first and final call BalanceOver – payments on application were to be applied towards sums due on allotment and first and final call. Where no allotment was made, money was to be refunded in full.The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 2,000 shares and applicants for 3,000 shares were sent letters \of regret. Shares were allotted in full to the remaining applicants.
All the money due was duly received.(a) Which value has been affected by rejecting the applications of the applications who had applied for 3000 shares? Suggest a better alternative for the same.(b) Give journal entries to record the above transactions (including cash transactions) in the books of the company.
OrPrabhu Ltd invited applications for issuing 60,000 shares of Rs10 each at par. The amount was payable as follows:On Applications Rs. 2 per shareOn allotment Rs. 3 per shareOn first and final call Rs. 5 per shareApplications were received for 92,000 shares. Allotment was made on the following basis:I To applicants for 40,000 shares – fullII To applicants for 50,000 shares- 40%III To applicants for 2,000 shares – Nil. Most of this category had applied for less than 5 shares each.Rs.1,08,000 was realized on account of allotment (excluding the amount carried from application money) and Rs. 2,50,000 on account of call.The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.(a) Which value has been affected by the rejection of application of category (III) applicants? Suggest a better alternative for the same.(b) Pass journal entries in the books of Prabhu Ltd to record the above transactions.
Q16.X and Y are partners as they share profits in the proportion of 3:1 their balance sheetas at 31.03.12 as follows.
BALANCE SHEETAs at March 31st, 12
Liabilities Rs Assets RsCapital Account Land 1,65,000X 1,76,000 Building 24,500Y 1,45,200 Stock 1,32,000Creditors 91,600 Debtors 35,200
Bills Receivable 28,600Cash 27,500
4,12,800
4,12,800
On the same date, Z is admitted into partnership for 1/5th share on the following terms* Goodwill is to be valued at 3½ years purchase of average profits of last three years whichwas Rs. 20,000 Rs. 17,000 Rs. 9,000 (Loss) respectively.* Stock is fund to be overvalued by Rs. 2,000 Building is reduced and Land to beappreciated by 10% each, a provision for Bad Debts @ 12% is to be created on Debtorsand a Provision of Discount of Creditors @ 4% is to be created.* A liability to the extent of Rs. 1,500 should be created for a claim against the firm fordamages.*An item of Rs. 1,000 included in Creditors is not likely to be claimed, and hence it shouldbe written off.Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new
firm if Z is to contribute proportionate capital and goodwill. The capital of partners is tobe in profit sharing ratio by opening current Accounts. 8
Or
A and H are partners sharing profit and losses as 3:2. They decidedto dissolve the firm on December 31, 2014. Their balance sheet on the abovedate was:Balance Sheet of Ashu and Harish as on December 31, 2014
Liabilities Amount Assets Amount (Rs.) (Rs.)Capitals: Building 80,000A 1,08,000 Machinery 70,000H 54,000 1,62,000 Furniture 14,000Creditors 88,000 Stock 20,000Bank overdraft 50,000 Investments 60,000
Debtors 48,000Cash in hand 8,000
3,00,000 3,00,000A is to take over the building at Rs. 95,000 and Machinery and Furniture istake over by H at value of Rs. 80,000. A agreed to pay Creditor andH agreed to meet Bank overdraft. Stock and Investments are taken byboth partner in profit sharing ratio. Debtors realised for Rs. 46,000, expensesof realisation amounted to Rs. 3,000. Prepare necessary ledger account. 8
PART B
(ANALYSIS OF FINANCIAL STATEMENT)
Q17. ‘No profit no loss’ point is called:(a) Fund Flow Point (b) Cash Flow Point (c) Trend Analysis (d) Break Even Point (1)
Q18. …………..ratio are a measure of the speed with which various accounts are converted into sales or cash.(a) Activity (b) Liquidity (c) Debt (d) Profitability. (1)
Q19. An example of cash flow from operating activity is:(a) Purchase of own debenture (b) Sale of fixed assets (c) Interest paid on term-deposits by a bank
(d)Issue of equity share capital (1)
Q20. Name the sub heading under which Assets shall be classified in company Balance sheet. (3)
Q21..From the following information prepare comparative statements of profit and loss. (4)
Particulars 31-3-2015 31-03-2014
Revenue From operations 5,00,000 3,50,000
Other Incomes 20,000 50,000
Expenses 1,20,000 1,00,0000
Income Tax 40% 50%
Q22. Find the value of current liabilities and current assets, if current Ratio is 2.5:1 liquid Ratio is 1.2:1 and the value of inventory of the firm is Rs. 39,000. (4)
Q23. Following are the Balance sheet of ABC Co. Ltd.:- (6)
Particulars Note
No.
31.03.2015 31.03.2014
1. Equity and liabilities
1)Share holder funds:-
10,00,000 8,00,000
2. Non current liabilities 1 2,50,000 2,00,000
3. Current Liabilities 5,50,000 4,75,000
Total 18,00,000 14,75,000
II. Assets :-
i) Non Current Assets
a) Fixed Assets
1) Intangible assets
2) Current Assets
a) inventory
b) Trade Receivables
c) Cash and cash equivalents
2 12,50,000
1,50,000
2,50,000
1,50,000
11,00,000
2,00,000
1,50,000
75,000
Total 18,00,000 14,75,000
Notes 1) Long term Borrowings
Loan from Bank 2,00,000 3,00,0002) Tangible fixed Assets
Land and Building 10,00,000 9,00,000Machinery 2,50,000 2,00,000
----------- -------------12,50,000 11,00,000------------ --------------
A Machine costing Rs 1,50,000 having Book Value of Rs 75,000 was sold for Rs 1,00,000 during the year interest paid on Loan from amounted to Rs. 30,000. Prepare cash flow statements.
Group F
MODEL TEST PAPER
ACCOUNTANCY
CLASS-XII
TIME: 3 Hrs Max Marks: 80
1. In the absence of partnership deed, the interest on loan provided to a partner is (1)a. 6% b. 5%c. 7% d. 4%
2. X and Y are partners sharing profits in 2:1. Z is admitted for 1/3rd share. The new profit ratio will be: (1)a. 2:1:1 b. 3:1:2
c. 4:2:3 d. 1:1:1
3. Give any one difference between revaluation a/c and realization a/c. (1)4. The maximum amount of capital that a company is authorized to issue is called: (1)5. What do you mean by forfeiture of shares.6. State any one purpose for which securities premium can be utilized. (1)7. A, B and C are partners sharing profits and losses in the ratio of 2:3:4. They decided to share
future profits in 4:3:2. They also decided to record the effect of the following without effecting their book values: (4)General reserve: 40,000P&L A/c (cr.) : 20,000Advertisement suspense: 15,000You are required to give the necessary journal entry.
8. P,Q and R are partners in a firm. The capital a/cs stood at Rs. 30,000, Rs 15,000 and Rs. 15,000 respectively on 1st April,2013. (6)
As per the provisions of the deed,
i. R was to be allowed a remuneration of Rs 3,000 p.a.ii. Interest @ 5% p.a. was to be provided on capital.iii. Profits to be divided in 2:2:1.
Ignoring the above terms, the net profit of Rs. 18,000 for the year ended 31 st March 2014 was divided among the partners equally.
Pass an adjustment entry.
9. R Ltd. took over assets of Rs 5,60,000 and creditors of Rs. 80,000 from S Ltd. R Ltd issued 8% debentures of Rs. 20 each at a premium of Rs. 4 per share as purchase consideration to S Ltd.
Calculate the amount of purchase consideration, number of debentures issued by R Ltd and pass the necessary journal entries in the books of R Ltd. (4 marks)
10. S ltd was formed on 1st December, 2013 with a capital of Rs. 5,00,000 divided into shares of Rs 10 each. It offered 80% of the shares to the public.The issue price was payable as follows:30% of the face value per share was payable with application.20% of the face value per share was payable with allotment.Balance as and when required. The company did not call for the balance during the year.All the shares offered by the company were subscribed for. The company did not receive the allotment money on 3,000 shares.You are required to:i. Show the share capital in the balance sheet of the company (prepared as per schedule
III of the companies act 2013) at the end of the financial year.ii. Prepare notes to accounts. (4 marks)
11. Record the necessary journal entries for issue and reissue in the following cases: (6 marks)i. V Ltd issued 10,000 9% debentures of Rs. 50 each at a discount of 8% redeemable at
par.ii. R ltd issued 50,000 8% debentures of Rs 100 each, payable on application and
redeemable at par.12. A and B are partners with sharing ratio 3:1.
Balance SheetAs at 31/12/2012
Liabilities Amount Assets AmountCreditors 2,00,000 Cash 30,000Bills payable 40,000 Bank 50,000General reserve 40,000 Debtor 60,000P&L 20,000 Building 200,000Outstanding expenses 20,000 Machine 100,000Capital:A:1,00,000 B:1,00,000
2,00,000 Investment 40,000
Patents 20,000
Goodwill 20,000
5,20,000 5,20,000
Adjustments:
i. C comes for 1/5th share and brings capital Rs 80,000 and his share of goodwill Rs 20,000.ii. Building is to be increased by 20%.iii. Outstanding expenses value at Rs 25,000.iv. Make 5% provision for discount on creditors.v. Make 10% provision for doubtful debts and 5% provision for discount.vi. Capitals of A and B adjusted in new ratio on the basis of C’s capital and difference adjusted
in current a/c.vii. Half premium withdrawn by old partners.
Prepare revaluation a/c, partners’ capital a/c and balance sheet.OR
A, B and C are partners. They share profits in capital ratio.Balance Sheet
As at 31/12/2012
Liabilities Amount Assets AmountCreditors 1,00,000 Cash in hand 40,000
Bank overdraft 50,000 Debtors 41,000Less: Provision 1,000
40,000
Reserve 30,000 Land and building 2,00,000Expense due 20,000 Machinery 20,000
Capital A/C: A-40,000
B-40,000 C-20,000
1,00,000
3,00,000 300,000Adjustments:i. B takes retirement.ii. New ratio of A and C 1:1.iii. Goodwill of the firm Rs. 60,000.iv. Make 5% provision for debtors.v. Building increased by 10%.vi. Make provision for claim for damage of Rs. 6000vii. Rs 10,000 paid to B in cash. Balance transferred to his loan a/c.viii. Capital of new firm Rs 200,000, difference adjusted through current accounts.
Prepare revaluation a/c, partners’ capital a/c and balance sheet.
13. Ashish and Neha were partners in a firm sharing profits in 4:3. They decided to dissolve the firm on 1st May 2014. From the information given below, complete realization a/c, partners’ capital a/c and bank a/c. (6 marks)
Realisation A/c
Particulars Amount Particulars AmountTo sundry assetsMachine-560,000
Stock-90,000Debtors- 55,000
705000 By sundry liabilities:Creditors-40,000
Ashish’s wife loan- 25,000
65,000
To bank (creditors) By bank:Machine-4,80,000
Debtors-10,000
4,90,000
To Ashish’s capital a/c:
Ashish’s wife loan
34,000 By Ashish’s capital:Stock-128,000
Typewriter-70,000
198,000
To Neha’s capital a/c:Realisation expenses
7,000 By Neha’s capital a/c:
Debtors
40,000
To profits transferred to:
Ashish’s cap a/c: 4,000
Neha’s cap a/c: 3,000
7,000
793,000 793,000
Partners capital a/c
Particulars Ashish Neha Particulars Ashish NehaTo realization - - By - -To bank a/c 400,000 450,000 By - -
By - -
Bank a/c
Particulars Amount Particulars AmountTo balance b/d - By realization -To realization 490,000 By ashish’s loan a/c 4,000
By ashish’s capital a/c 4,00,000By neha’s capital a/c -
14. S Ltd. Invited application for issuing 2,00,000 equity shares of Rs. 10 each. The amount was payable as follows:Application- Rs 3 per shareAllotment- Rs 5 per share
First and final call- Rs 2 per shareApplications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants.Vivek who was allotted 3,000 shares failed to pay the allotment and call money. His shares were forfeited. Out of the forfeited shares, 2500 shares were reissued as fully paid up @ Rs 8 per share.Pass the necessary journal entry to record the above transactions.
OrGive journal entries for forfeiture and reissue of shares:
i. A ltd forfeited 1000 shares of Rs. 10 each, Rs 7 called up, issued at premium of 20%(to be paid at the time of allotment) for non payment for a first call of Rs 2 per share. Out of these 600 shares were reissued as Rs 7 paid up for Rs. 4 per share.
ii. B Ltd forfeited 1000 shares of Rs 10 each, Rs 7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non payment of allotment money pf Rs. 4 per share (including premium) and first call of Rs 2 per share. Out of these, 600 shares were re-issued as fully paid for Rs 8.50 per share.
"Part B"
19) Quick ratio of a Company 1:5:1 State giving reason whether the Ratio will improve
decline or not change on payment of divided already declared by the company. (1)
20) State whether conversion of debentures into equity shares by a financing company will
result inflows, out flow or no flow of cash. (1)
21) Interest Received by a finance company is classified under which kind of activity while
preparing a cash flow statement. (1)
22) Name the sub heading under which share holder funds shall be classified in company
Balance sheet. (3)
23) From the following information prepare a comparative statements of profit and loss. (4)
Particulars 31-3-2014 31-03-2013
Revenue From operations 75,00,000 60,00,000
Other Incomes 120000 150000
Expenses 50,60,000 44,00,000
Income Tax 40%
24) Find the value of current liabilities and current assets, if current Ratio is 2.5:1 liquid
Ratio is 1.2:1 and the value of inventory of the firm is Rs. 78000. (4)
25) Following are the Balance sheet of X Co. Ltd.:- (6)
Particulars Note
No.
31.03.2012 31.03.2011
1. Equity and liabilities
1)Share holder funds:-
3,00,000 2,50,000
2. Non currentlias 1 45000 80,000
3. Current Liabilities 42500 28000
Total 3,87,500 3,58,000
II. Assets :-i) Non Current Assetsa) Fixed Assets1) Jangible assets2) Current Assetsa) inventoryb) Trade Receivables c) Cash and cash equivalents
2 302500
250005000010000
2,70,000
45000350008000
Total 387500 358000
Notes 1) Long term BorrowingsLoan from Bank 45000 800002) Tangible fixed Assets
Land and Building 220000 1,50,000Machinery 82500 1,20,000
----------- -------------302500 270000
------------ --------------A Machine costing Rs 40,000 having Book Value of Rs 25000 was sold for Rs 35000 during the year interest paid on Loan from amounted to Rs. 8000. Prepare cash flow statements.
Model Question Paper
Business Studies
Group A
BLUE PRINT
BUSINESS STUDIES
S No.
Typology Of Question Very Short
Answer 1 mark
Ques No.
Short Answer
I3 Marks
Ques No.
Short Answer
II4 Marks
Ques No.
Long Answer
I5marks
Ques No.
ESSAY TYPE Answer
II6Marks
Ques no.
Marks %
1 Remembering 1,2 9 18 21 14 17
2 Understanding 3,4 12,13 14 22 18 23
3 Application 5,8 11 16 20 23 20 25
4 High Order Thinking Skills 6,7 10 15,19 24 19 24
5 Evaluation 17 22 9 11
Total 8X1=8 5X3=15 6X4=24 3X5=15 3X6=18 80(25 Question)
100
Model Test paper
12th class-Business studiesTime:3hours Max. marks:90General Instructions:
i)Answer to question carrying 1 marks may be from one word to one sentence.
ii)Answer to question carrying 3 marks ay be from 50-75 words.iii)Answer to question carrying 4-5 marks may be about 150 words.iv)Answer to question carrying 6 marks may be about 200 words.v)Attempt all parts of a question together.
1) Identify the nature of management when it is said to be a systematized body of knowledge that explain general truths. 12) What is economic environment 13) Increasing sales by 10% or earning profit of 20% is an important type of plan. Identify the type of plan. 1 4) In controlling, why is actual performance compared with standards? 15) Write any 1 personal objective of management has to be taken care of while selecting a player for a cricket team. 16) Why it is said that “controlling is an continuous activity”? 17) State any 1 “protective function” of securities and exchange board of India(SEBI) . 18) ‘Cost of debts ‘ is lower than the cost of ‘equity share capital‘ give reason why then a company can not work even with the debt. 19) Give any 3 advantage of external sources of recruitment. 310) How does Ganag Plank enable managers to communicate ? Draw a figure to clarify it.
11)Aman Ltd. Is manufacturing toys and has production ,sales , purchase and finance department. Which type of organization structure would you suggest to them. State any 2 advantages of this organization structure. 3
12)”Primary objective of financial management is to maximize shareholders’wealth”.Explain.3
13)”Securities and exchange board of India(SEBI) is the watchdog of stock market”. Justify it .
14) Write any 4 difference between centralization and decentralization. 4
15)”Delegation of authority is based on the elementary principle of Division of work”.Justify it example. 4
16) Explain ‘objectives’ and ‘policy’ as the type of plan using suitable example. 4
17) Rahim was working in an enterprise on daily wages. It was difficult for him to fulfill the basic needs of his family. His daughter fell ill. He had no money for his daughter’s treatment . To meet to expenses ofher treatment , he participated in a cylcle race and won the prize money.
The cycle company offer him a permanent pensionable job which he happily accepted. 4
a) By quoting the lines from above para identify the needs of Rahim that are satisfied by the offer of cycle company. b) Also explain needs of Rahim followed by above that are still to be Satisfied. (2+2=4)
18) Expalin any 2 techniques of scientific management with example. 4
19) “ Various tools of communication are used by the marketers to promote Their products”. Answer the following questions:-
a) Name and explain the most commonly used non-personal tool of Promotion which is paid for by marketer. b) Which tool of promotion will primarily be used for the following i) To promote or protect a company’s image or its individual Products.ii) An existing product made for mass usage by literate people. (2+2=4)
20) In M/S Paramount Ltd., there is no restriction on follow of communication and each and every employee free to approach every one for minor queries and problems. Although this follow of communication isfast, but it has led to leakage of confidential information.
i) Which network of formal communication is used by the company?ii) Mention a suitable network, which can be used by the company To protect the confidential information? (1+4=5)
21) What do you mean by advertisement? Explain any 3 feature of it in brief. (2+3=5)
22) What is ment by packaging ? State any 3 functions of packaging. (2+3=5)
23) Identify and explain different dimensions of Business Environment Which you see and find in McDonald’s(Fast food chain). 6
24) A company X Ltd. Manufacturing cosmetics(FMCG) , which has enjoyed a prominent position in business , has grown in size. Its business was very good till 1991.But after that , new liberalized environment has seen entry of many MNC’s in this sector. With the result, the market share of X decline. The company has followed a very centralized business model, directors and divisional heads making even minor decisions. Before 1991 this business model has served the company very well as consumers had no choice. But now company is under pressure to reform –
a) what organization structure change should the company bring about in order to retain its market share?
b)How will the changes suggested by you to help the firm. (3+3=6)
25)Distinguish between the concept ‘product’ and ‘production’ in marketing Keeping following as the base :
a)means b) main focus c) ends d) starting point. 6
Group B
Model Paper 2015-16Class XII
Business StudiesTime: 3 Hrs MM: 801 Mr. Ashish is working as a Branch Manager of an insurance company in Chennai. Mention the level of management at which he is working.
12 ‚There should be place for everything and everything should be in its own place.‛ Which principle of management is this and by whom it has been given? 13 A trainer is highly skilled in his field of weaving in a Thread Manufacturing company. He has trained so many workers in the organization. Which point of importance of organizing is highlighted by this statement? 14 Which element of the functions of management is the process of influencing?Behaviour of subordinates to work willingly and enthusiastically for achieving desired results?
15 Name the function of management which ensures that actual performance results are in accordance with planned results.
16 A company has decided to open a new factory for its expansion plan. Name the type of decision involved.
17 Which money market instrument is issued by Reserve Bank of India on behalf ofGovernment of India? 18 A company uses various sales promotion techniques like “Buy One, Get One Free”, ‚Free Gifts‛, ‚Lucky Draw‛ on regular basis to increase its sales.
Identify the values which are ignored by the company. (any two) 1
9 What do you mean by Method Study? Explain. 3
10 ‚To ensure that a plan has been implemented successfully and is working effectively, a further step is required.‛ Identify this step and explain it.
311 Can an over burdened manager take help from his subordinates? How? Explain the three important things which he should keep in mind while taking such help. 312 ‚Since every manger performs staffing function, there is no need for separate Human Resource Department as it also performs the staffing function.‛ Do you agree with this statement? Give any two reasons.
313 ‚During the period of economic down trend, a company assured its employees that no employee would be retrenched because of economic down trend.‛ Name the type of incentive that the company has offered to its employees and explain any two more incentives of this type.
314 ‚Directing is the heart of management process.‛ Do you agree? Give any three reasons in support of your answer.
415 A production manager of a company was given a standard soap. He was asked toproduce similar other soaps. What control process would he have followed?
416 Mr. Suresh is completely engaged in his Business of manufacturing Electronic goods like Electric Cables, Iron, Geysers, Pumps etc. explain any two factors that will affect his fixed capital requirements and working capital requirements. 4
17 What do you mean by Secondary Market? Explain functions of SEBI?4
18 Your company has recently launched a wide range of washing machines. You do not want to incur huge cost. What are different alternative distribution channels that you can follow? How these would benefit the company? 419 Who is a ‘Consumer’ as per Consumer Protection Act? What are the responsibilities given to any Consumer?
420 ‚Business environment is quite significant for Business Organisations.‛ Explain any five reasons for this.
521 Which function of management helps in obtaining right people and putting them on the right jobs? Explain any five points of importance of this function. 522 Explain any five factors which affect dividend decision.
523 ‘Management is regarded as an Art by some, science by others and inexact science by many more. The truth seems to be somewhere in between.’ In the light of this statement explain the exact nature of management. 624 Explain four types of barriers to effective communication. Also brief one type (example) of each barrier.
625 ‚All organizations need marketing‛ Do you agree to this statement? If so, give reasons in support of your answer along with relevant examples from business sector.
Group C
KENDRIYA VDYALAYA SANGATHAN, PATNA REGION
MODEL QUESTION PAPER
CLASS:-XII SUBJECT:- B. STUDIES
TIME ALLOWED:- 3 HOURS +15 Minutes MM-80
General instructions:-
1. Answers to questions carrying 1 mark may be from one word to one sentence.
2. Answers to questions carrying 3 marks may be from 50 to 75 words.
3. Answers to questions carrying 4-5 marks may be about 120 words.
4. Answers to questions carrying 6 marks may be about 200 words.
5. Attempt all parts of a question together.
1. What is meant by principle? [1]2. Give the meaning of method as a type of plan. [1]3. What is meant by democratic style of leadership? [1]4. Name the training method in which a trainee works under the guidance of a
master worker. [1]5. What is deviation? [1]6. Name any two decisions taken by a financial manager. [1]7. How does ‘inflation’ affect working capital requirements of a company?
State. [1]8. Name any two consumer organizations. [1]9. Explain in brief any three limitations of planning. [3]10.Can accountability be delegated? Give reasons in support of your answer.[3]11. How does planning facilitate control? Justify your answer with the help of
suitable example. [3]12.Explain any three functions performed by a supervisor that are vital to any
organization. [3]13.Explain the following Rights of consumers:- [3]
i. Right to seek redressal
ii. Right to be heard14.Explain any four measures to overcome the barriers of communication. [4]15.Sahil Ltd. Is manufacturing shirts and has production, marketing, finance
and personnel departments n the organization. Name the type of organizational structure Sahil Ltd. Is following. State any three advantages of this organization structure. [4]
16.Megha Ltd. was manufacturing water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analysed the reasons of less revenues. After analysis the company decided:i. To reduce the labour cost by shifting the manufacturing unit to a
backward area where labour was available at a very low rate. ii. To start manufacturing solar water-heaters and reduce the production
of electric water-heaters slowly. This will not only help in covering the risks, but also help in meeting other objectives too.
a. Identify and explain the objectives of management discussed above.b. State any two values which the company wanted to communicate to the
society. [4]17.The directors of a manufacturing company are thinking of issuing Rs.20 lacs
additional debentures for expansion of their production capacity. This will lead to an increase in debt-equity ratio from 2:1 to 3:1.What are the risks involved in it? What factors other than risk do you think the directors should keep in view before taking the decision? [4]
18.State any four development functions of SEBI. [4]19.Despite internal sources of recruitment being economical why do companies
not always use this source? State any four reasons. [4]20.How would you argue that the success of a business enterprise is
significantly influenced by its environment? [5]21.Explain any five factors which affect the determination of the price of a
product. [5]22.What is capital structure? Explain in brief any four factors affecting capital
structure. [5]23.What is controlling? Explain in brief the controlling process. [6]24.Define management. “Success of an organization largely depends upon its
management.” Explain in brief any five reasons to justify the statement.[6]
25.Though advertising is one of the most frequently used media of promotion of goods and services, yet it attracts lot of objections. Explain any four such objections. [6]
Group D
MODEL TEST PAPERCLASS- XIITH SUB- B.ST.TIME- 3Hrs M.M.- 80
Q1- Why is recruitment considered a positive step?Q2- Name the lowest level of needs included in Maslow’s need hierarchy
theory.Q3- Which market meats the need of short term financial requirement?Q4- Rajat a sales manager achieved his sales target one month in advance.
This achievement was displayed on the notice board and the CEO of the company awarded a certificate for the best performance to firm. Name the incentive provided to Rajat.
Q5- A consumer is not satisfied at the Judgment of a state commission. What remedy is open to him?
Q6- Why does Management help people to adopt the environmental changes?
Q7- What is job specification?Q8- You want to reach the maximum number of prospective consumers for
your product. Which element of promotion mix will you use for this?Q9- Financial market plays an important role in the allocation of scare
resources in economy by performing many important functions. “ Explain any three such functions.
Q10- Explain the Feyol’s principle of scalar chain. Where do we find flexibility in this principle?
Q11- Explain the meaning of policy as a type of plan with the help of a suitable example.
Q12- A company has its registered office in Delhi, Manufacturing unit at Gurgaon and marketing and sales department at Faridabad. The company manufactures the consumer products. Which type of orgnisational structure should it adopt to achieve this target?
Q13- A decision in financial management is basically concerned about how much fund is to be raised and from which souce? Name the type of
decision and also explain two vital factors to be kept in mind while taking such decisions?
Q14- Stat any four features of a good brand name.Q15- Explain any four factors that determine the capital structure of a
company.Q16- Distinguish between delegation and decentralization of authority on the
basis of concept, purpose, scope and number of persons envolved.Q17- There is no need of human resource planning as so many people are
available in the market these days. Do you agree with this statement. Give reasons.
Q18- How can an organization overcome the barriers to effective communication?
Q19- One of the points of the importance of planning is that it focuses attention on objectives. Is it in the interest of a business to line social values with these objectives ? Explain with suitable examples.
Q20- A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What steps should each level of management take to give effect to this decision.
Q21- State any five changes in government policy that have made the business environment more positive .
Q22- Kayco Ltd. Is manufacturing detergents. They decide to launch a new range of herbal products. As they are in a hurry, they have tested products on animals only. The necessary information is missing on the package. The management also plans to launch a new factory in a tribal area where the required products are easily available and the labour-men , women and children are available for work at low wages in the absence of development opportunities and schools.
a)Which values do you find disturbing in the above para?b)Will the decision to install a new unit in a tribal area help society?
Highlight the social values involved in this decision.Q23- Explain the steps in the process of controlling.Q24- A new setup automobile company having factory in Delhi is planning to
determine channels of distribution in India for its two model of cars. Which channels will you recommend and why?
Q25- You are the finance manager of a company. The borad of directors have asked you to determine the working capital requirement for the
company. State the factors that you would consider while determining the working capital for the company.
Group E
MODEL TEST PAPER -2015-16
BUSINESS STUDIES
CLASS – XII
Time allowed 3 hours Marks : Maximum 80
General Instructions:
(1)Answers to questions carrying 1 mark may be from one word to one sentence.
(2) Answer to questions carrying 3 marks may from 50 to 75 words.
(3) Answer to questions carrying 4-5 marks may be about 150 words.
(4) Answer to questions carrying 6 marks may be about 200 words.
(5) Attempt all parts of a question together.
1.Define Scientific Management. (1)
2. State why is planning called a primary function of management. (1)
3.“The principles of management do not provide readymade, straitjacket solutions to all
managerial problems”. Which nature of principles of management is highlighted here? (1)
4. What is meant by the ‘Estimating man-power requirements’ as a step in the process of
‘Staffing’?. (1)
5. Give any one reason why management principles are required. (1)
6. ‘Controlling is forward looking? How can this be ensured? (1)
7. Just after declaration of Lok Sabha Elections 2014 results, the Bombay Stock Exchange’s price
index (Sensex) rose by 1500 points in just two days. Identify the environmental factor which
led to this rise. (1)
8. How does informal organisation support the formal organisation? (1)
9. State any three advantages that a functional structure offers to an organization. (3)
10. ‘Choice of an appropriate channel of distribution is very important marketing decision which affects the performance of an organization’. Explain any two factors on which the choice of an appropriate channel depends. (3)
11. Apurva Ltd. is a highly reputed company and many people wanted to join this company. The employees of this organization are very happy and they discussed how they came in contact with this organization. Aman said that he was introduced by the present Sales manager, Mr. John. Benu said that he had applied through the newspaper and was appointed as H.R Manager. Vaibhav said that he was neither related to any of the employee of the organization nor there was any advertisement in the newspaper even then he was directly called from IIM Ahmedabad from where he was about to complete his MBA.
a) The above discussion is indicating an important function of management. Name thefunction of management
b) The management function identified in part (a) follows a particular process. Explain the step of this process which is being discussed in the above para. (1+2)
12. Radhika’s grandmother who was unwell, called her and gave her a gift packet. Radhikaopened the packet and saw many crumpled share certificates inside. Her grandmother told her that they had been left behind by her late grandfather. As no trading is now done in physical form, Radhika wants to know the process by adopting which she is in a position to deal with these certificates.
a) Identify and state the process.
b) Also give two reasons to Radhika why dealing with shares in physical form had been
stopped. (1+2)
13. The barriers to effective communication exist in all organizations. Explain any three measures to
overcome these barriers. (3)
14. Define Business Environment. State any three of its features. (4)
15. Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner Ecom Creations Ltd. He launches a new product in e-learning for Senior Secondary School students in Commerce stream, which already has an established market in UK and USA but not in India. His business starts flourishing in India. Now more Indian companies entered into the market with other subjects also. Identify and quote the lines from above para which highlight the significance of understanding business environment. (4)
16. Rajeev, the owner of Pathways constructions decided to start a campaign to create awareness among people for developing clean surroundings in their area. He formed a team of 10 members to list the different ways for cleaning the surroundings. One suggested to take the help of local residents, another suggested that they may involve school going children in their venture. One more suggestion was to take the help of unemployed youth. On evaluation of different ways, it was decided to take the help of local residents. To achieve the desired goal various activities were identified like
a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.;b) Collection of garbage;c) Disposal of garbage, etc.After identification of different activities the work was allocated to different members.i. Identify the concepts of management involved in the above situation and quote the lines which help in their identification. ii. Also identify the values which the company wants to communicate to the society (4)
17. Blue Heavens Ltd. purchased a new hi-tech machine from Germany for manufacturing high quality auto components in a cost effective manner. But during the production process, the manager observed that the quality of production was not as per standard. On investigation it was found that there was lack of knowledge amongst the employees of using these hi-tech machines. So, frequent visit of engineers was required from Germany. This resulted in high overhead charges.
(i) Suggest what can be done to develop the skills and abilities of employees for producing high quality products by using these hi-tech machines. Also state how the employees or the organization will benefit from your suggestion. (4)
18. Explain any four functions of financial market. (4)
19. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest, Ltd.. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to a consumer activist group to seek help. The group decided to help Radha and take measures to
impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.
a) Identify the concept of Marketing Management which will help the Manager getting the firm out of the above crisis.
b) Also explain the role of above identified concept by stating any two points. (4)
20. A company is manufacturing washing machines. There is a well defined system of jobs with a clear and definite authority, responsibility and accountability in the company. But people are not allowed to interact beyond their officially defined roles. As a result the company is not able to adapt to the changing business environment. The workforce is also not motivated due to lack of social interaction. The company is facing problems of procedural delays and inadequate recognition to creative talents.
(i) Suggest how the organization can overcome the problems faced by it.
(ii) Give any two benefits it will derive from your suggestion. (5)
21. State the importance of directing function of management. (5)
22. Explain any two of the following Fayol’s principal of management with examples: (5)
(i) Equity (ii) Espirit de corp (iii) Remuneration of personnel
23. Explain the following functions of marketing: (6)
(a) Gathering and analysing market information
(b) Product desiging and development
(c) Standardisation and grading
(d) Customer support services
24. It is necessary that goods and services must be made available to the customers at the right place, in the right quantity and at right time. (6)
a) Name and explain the concerned element of Marketing Mix given above.
b) Explain the components of this element
25. Microsoft Ltd. earned a net profit of Rs.50 crores. Ankit the finance manager of Microsoft Ltd. wants to decide how to appropriate these profits. Identify the decision that Ankit will have to take and also discuss any five factors which help him in taking this decision. (6)
Group F
MODEL TEST PAPER-1
Sub: BST Time : 3 Hours
All questions are Compulsory.
Q.1 Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results? 1
Q.2 Why is coordination is known as the essence of management? 1
Q.3 What is Internal Environment?1
Q.4 What function of management is known as “Management in action”? 1
Q.5 What is laissez fair leadership style? 1
Q.6 State any one advantage of critical point control and management by Exception? 1
Q.7 Name the concept which increase the return on equity shares with a change in the capital structure of a company? 1
Q.8 What is meant by Primary market? 1
Q.9 Explain ‘Increasing Competition’ and more demanding Customers as impact of government policy changes on Business and Industry? 3
Q.10 Explain the steps involved in the Process of planning? 3
.11 Direction is the least important function of management.Do you agree with the statement?Give any two reasons in support of you answer? 3
Q.12 State any three features of advertising? 3
Q.13 Explain the 3-tier hedressal mechanism done under Consumer Protection Act 1986? 3
Q.14 In order to make greater sales & profits an organization is planning the fallowing:
a) To avoid the taxes payment
b) To enhance the motivation of the employees by producing then the training.
C) To increase the rate of remuneration.
Q.15 What do you mean by employee development? Why is it needed? 4
Q16. Distinguish between Autocratic and Democratic Leadership style? 4
Q17 Explain the factors affecting amended decision of the company? 4
Q18 Distinguish between primary and Secondary market? 4
Q.19 Define Marketing Min> Explain its Components? 4
Q20 Explain the technique of scientific management Which separates the planning & execution work? 5
Q21 Explain the Components of promotion in market? 5
Q22 Explain the various money market investment? 5
Q23 A Company is producing cigarettes & is earning huge profits under the residential area
a) The Govt. or deed the company to relocate business to for flung area & increased the tax ratio.
b) The next V year company had the loss because of secured competitors in the market.c) Identify the dimension in detail of business environment that are discusses above
ORDiscuss the a) Time Study b) Motion Study c) faligul study d) Method Study
Q24. How is a functional Structure disparate from a Divisional Structure? 6Or
Give the essential elements of delegation?
Q25. What is meant by motivation? Explain Mascow’s need hierarchy theory of motivation? 6Or
Explain the steps in the process of staffing?
Prepared by:Ms. Shweta BansalPGT(Comm)K V Patna No.01