Busines Studies : Class XI (2015-16) : Nature&Purpose of Business and Forms of Business Organisations(Sole Proprietirship and Partnership)

Chapter 1 : Nature and Purpose of Business

Very Short Answer type Questions (1 mark)

1. Name the trade where the goods are bought from the foreign country.

2. Which industry provides services to primary and secondary industry?

3. Give an example of activity which is economic in one side and

non economic on other side.

4. Why is business considered an economic activity?

5. Name the economic activity in which specialised knowledge is required.

6. Why is the insurance known as a tertiary industry?

Short Answer type Questions (3/4 marks)

1. Write four differences among business, profession and employment.

2. No business is risk free in the light of this statement, explain the

concept of business risk and its any three causes.

3. If is a person sells his domestic computer at a profit, will it be considered

a business? Also explain the characteristic of business which is being

stressed upon in the above said example.

Long Answer type Questions ( 5/6 marks)

1. Profit play an important role in business. Give four reasons to justify the statement.

2. Explain the features of business.

3 Define business. Explain the characteristics of business (any four)

4. Commerce is the sum total of activities that remove hindrances in the

free flow of goods from producers to consumers. Explain.

5. Profit maximisation can t be the sole objective of a business . Explain.

HOTs:

1. Risk is an inherent element of a Business. Do you agree? Explain.

Chapter 2 : Forms of Business Organisations

Very Short Answer type Questions: (1 Mark)

1. Varun is the only owner of his restaurant. Name the form of business

organization.

2. List two merits of Sole proprietorship.

3. Name any one business in which sole proprietorship is most suitable.

4. Explain the meaning of unlimited liability.

 Short Answer Type Questions: (3 or 4 Marks)

1. State the important features of partnership.

2. Which form of business is suitable for following types of business and why?

a) Beauty Parlour

b) Coaching centre for Science Students

HOTs

1. “One man control is the best in the world if that man is big enough to manage

everything”. Explain.

Assignment(2015-2016) -Class XI - Introduction to Accounting and Basic Accounting Terms

1. The definition of accounting brings to light various attributes of accounting. In context to this, define accounting and discuss any four attributes of accounting.

2. What is an Accounting Cycle? List the sequential steps in an Accounting Cycle.

3. ‘Accounting Information should be comparable.’ Do you agree with this statement? Give two reasons.

4. These are various numbers of functions performed by accounting. Describe any three such functions.

5. Do you agree with the statement: ‘recording of financial transactions and preparing the financial statements is the only objectives of accounting’?

6. Appointment of a new managing director is not recorded in the books of accounts. Why?

7. Users of accounting information are categorized into internal and external users. State and explain any four external users and their information needs.

8. Accounting has many benefits associated with it. In context to this, discuss any six advantages of accounting.

9. Giving examples, explain each of the following accounting terms.

(i) Non Current Liability                                 (vii) Deferred revenue expenditure

(ii) Gain                                                                                (viii) Prepaid Expense

(iii) Profit                                                             (ix) Liability

(iv)Revenue                                                       (x) Intangible Assets

(v)Expenses

(vi)Capital

10. What is the primary reason for business students and others to study accounting discipline?

11. Briefly explain ‘window dressing’ as a limitation of accounting. Also throw light on the following statement “the role of accounting has changed over the period of time.’”

12. Is the basic objective of book-keeping to maintain systematic records or to ascertain net results of operations of financial transactions?

13. Define the role of accounting in the modern world.

14. Enlist the differences between book keeping, accounting and accountancy?

15. State true or false giving reason:

1. Accounting can be viewed as an information system which has its inputs, processing methods and outputs.

2. Amount owed to outsiders (other than proprietor) is called capital.

3. Lenders are internal users of accounting.

4. Protecting the business assets of a firm is not an objective of accounting.

Accountancy- Class12- Chapter 1- Fundamentals of Partnership

 Q.1 What is the status of partnership from an accounting viewpoint ?

Q.2 List the items that may appear on the debit side and credit side of a partner's fluctuating capital account.

Q.3 Give two points of difference between Profit and Loss and profit and loss appropriation A/c.

Q4. A, B and C are partners in a firm having fixed capital of Rs. 80,000, Rs. 40,000 and Rs. 50,000 respectively sharing profits as 7 : 6 : 4. The rate of interest on capital was agreed at 10% p.a. but was wrongly credited to them @ 12% p.a. Give the necessary adjustment entry to adjust the balance of partners capital a/c.  

Q5. P, Q and R are partners with capitals of Rs. 40,000 , Rs. 30,000 and Rs. 20,000 respectively. The partnership deed provided the following :

(1) R to get salary Rs. 2,000 p.a.

(2) Q to get commission Rs. 1,500

(3) P’s loan Rs. 20,000 @ 6% p.a.

(4) Drawings of partners were : P : Rs. 5,000 ; Q : Rs. 4,000 and R : Rs. 3,000

(5) Profit sharing ration 2 : 1 : 1

The profits for the year ended 31st December 2008 without taking the above facts amounted to Rs. 12,700.

Prepare Profit & Loss Appropriation A/c and Partners’ capital a/c.

Q6. Which of the following statements will be applicable to Partnership firm in the absence of Partnership deed? (Any one of the following).

i) Salary allowed to a partner for extra work done.

ii) Interest on capital of partners will be 5% p.a.

iii) Interest on partner’s loan @ 6% p.a.

iv) Profit sharing ratio.

Q.7. A and B entered into partnership on 1st April, 2010 without any partnership deed. They

introduced capitals of Rs. 5, 00,000 and Rs. 3, 00,000 respectively. On 31st October, 2010, A advanced Rs. 2, 00,000 by way of loan to the firm without any agreement as to interest. The Profit and Loss Account for the year ended 31032011 showed a profit of Rs. 4, 30,000 but the partners could not agree upon the amount of interest on loan to be charged and the basis of division of profits. Pass a Journal Entry for the distribution of the Profits between the partners and prepare the Capital A/cs of both the partners and Loan A/ c of ‘A’.

Q8.Manoj Sahil and Dipankar are partners in a firm sharing profits and losses equally. They have omitted interest on Capital @10% per annum for three years ended on 31st March, 2011. Their fixed Capital on which interest was to be calculated throughout the were :

Manoj Rs.3,00,000

Sahil Rs.2,00,000

Dipankar Rs.1,00,000

Give the necessary adjusting journal entry with working notes.

Q9. A, Band C are partners with fixed capitals of Rs. 2,00,000, Rs. 1,50,000 and Rs. 1,00,000 respectively. The balance of current accounts on 1st January, 2004 were A Rs. 10,000 (Cr.); B Rs. 4,000 (Cr.) and C Rs. 3,000 (Dr.). A gave a loan to the firm of Rs. 25,000 on 1st July, 2014. The Partnership deed provided for the following:-

(i) Interest on Capital at 6%.

(ii) Interest on drawings at 9%. Each partner drew Rs. 12,000 on 1st July, 2014.

(iii) Rs. 25,000 is to be transferred in a Reserve Account.

(iv) Profit sharing ratio is 5:3:2 upto Rs. 80,000 and above Rs. 80,000 equally.

Net Profit of the firm before above adjustments was Rs. 1,98,360.

From the above information prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners.

Q10. A and B were partners in a firm sharing profits and losses in the ratio of 3:2. They admit

C for 1/6th share in profits and guaranteed that his share of profits will not be less then Rs.

25,000. Total profits of the firm were Rs. 90,000. Calculate share of profits for each

partner when:

1. Guarantee is given by firm.

2. Guarantee is given by A

3. Guarantee is given by A and B equally.

Business Studies -Class 12- Chapter 1 -Nature and significance of Management

A. Short Answer Type Questions

1. Top management is also known as operational management. Do you agree.

2. "Coordination is not needed at all levels of Management". Is this statement justified?

3. Who is responsible for directing, leading and coordinating the group efforts of employees?

4. Why is it said that" Management is all pervasive"?

5. Hero Ltd.'s target is to produce 10,000 shirts per month at a cost of Rs.100 per shirt. The production manager achieved this target at a cost of Rs.90 per shirt. Do you think the production manager is effective? Give one reason to support your answer.

B. Long Answer type Questions

1. "Management is a series of continuous interrelated functions with no pre-determined sequence." Explain.

2. "Coordination is regarded as the essence of management rather than a separate function of manager." Do you agree with this statement. Give reasons.

3. "In the absence of management, the productive resources will remain resources and shall never become production." Explain the importance of management in the light of above statement.

4. "Management provides effectiveness to human efforts and provides judgement and vision." Explain.

5. " Management is a trinity of an art, science and profession." In the light of this statement explain the nature of management.

6. Sejal is working as 'Regional Manager' in Tifco Ltd. Name the level at which she is working. State any four functions she will perform as 'Regional Manager' in this company.

7. Manika 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 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 Al's help in meeting other objectives too.

a. Identity and explain the objectives of management discussed above.

b. State any two values which the company wanted to communicate to the society.

8. Distinguish between coordination and cooperation.

9. Management seeks to achieve certain objectives. Explain these objectives.

10. 'Management is a set of functions.' Explain.