Commerce

Sunday, 13 May 2018

countancy Class XII
Chapter Admission of a Partner

Q:1 Why should a new partner contribute for goodwill?

Q:2 A, B and C are in partnership sharing profits and losses in the ratio of 5:4:1 resp. Two new partners D and E are admitted. Profits are now to be shared in the ratio of 3:4:2:2:1 resp. D is to pay Rs 30,000 for his share of goodwill but E has insufficient cash to pay for goodwill. Both the new partners introduced Rs 40,000 each as their capital. Pass necessary journal entries.

Q:3 A & B are partners in a firm. They admit C as a partner with 1/4^th share in the profits of the firm. C brings Rs 2,00,000 as his share of capital. Value of Assets is Rs 5,40,000 and outside liabilities are valued at Rs 1,00,000 on that date. Give journal entries.

Q:4 Balance Sheet of X, and Y who share profits and losses in the ratio of 3:2 as at 31-3-2015 was:

Liabilities	Rs	Assets	Rs
Creditors Reserve P& L A/c X’s Capital Y’s Capital	1,00,000 60,000 25,000 48,000 32,000	Bank Debtors Stock Furniture Plant & Machinery Advertisement Expenditure	10,000 50,000 70,000 20,000 1,00,000 15,000

2,65,000 2,65,000

They admit Z as a partner from 1^st April, 2015 with 1/5^th share in the profits of the firm. Z brings in Rs 50,000 as his capital. Give Journal entry for adjustment of goodwill.

Q:5 A, B and C were partners in a firm sharing profits and losses in the ratio of 3:1:1. On 1^st April, 2015, their Balance Sheet stood as:

Liabilities	Rs	Assets	Rs
Creditors General Reserve P& L A/c A’s Capital B’s Capital C’s Capital Invt Fluctuation Reserve Workmen Compensation Reserve Employees Provident Fund	1,00,000 25,000 35,000 1,00,000 30,000 20,000 20,000 23,000 30,000	Current Assets Machinery Investment( market value Rs 28,000) Furniture Land & Building Advertisement Expenditure	1,18,000 50,000 30,000 10,000 1,50,000 25,000

3,83,000 3,83,000

========= =========

They admitted D into partnership for 1/5^th share of profits on the above date. A claim on account of workmen compensation is estimated at Rs 13,000 only.

Q:6 A is admitted as a partner in ABC & Co, a partnership firm of B & C. The firm has reserves of Rs 75,000 and accumulated profits of Rs 1,00,000. At the time of admission, accountant distributed the reserves and accumulated profits to B and C in their profit sharing ratio. B was of the opinion that they should not be distributed because

i) There is no legal requirement

ii) Even if they are not distributed then also they will remain in the business and can be distributed whenever required at the time of retirement/death of the partner.

Do you agree? Give reasons.

Q:7 Murari and Vohra were partners in a firm with capitals of Rs 1,20,000 and Rs 1,60,000 resp. On 1^st April,2015 they admitted Yadav as a partner for 1/4^th share of goodwill.

On that date the creditors of the firm were Rs 60,000 and Bank overdraft was Rs 15,000. Their assets apart from cash included stock Rs 10,000; debtors Rs 40,000; Plant Rs 80,000; Land & Building Rs 2,00,000. It was agreed that stock should be depreciated by Rs 2,000; Plant by 20%, Rs 5,000 should be written as bad debt and land & building be appreciated by 25%.

Prepare Revaluation A/c, Capital A/cs and the Balance Sheet of the new firm.

Q: 8 Balance Sheet had Investment Fluctuation reserve of Rs 20,000. New partner is admitted. Value of investments is Rs 60,000 against its book value of Rs 80,000. What amount of Investment Fluctuation Reserve will be distributed among partners.

Q:9 A and B are partners in a firm. Their Balance Sheet as at 31^st March, 2015 was:

Liabilities	Rs	Assets	Rs
Creditors Outstanding expenses A’s Capital B’s Capital Provision for doubtful debts Workmen Compensation Reserve	30,000 3,000 50,000 60,000 4,000 5,600	Cash Machinery Debtors Stock Profit & Loss A/c	10,000 38,600 80,000 20,000 4,000

1,52,600 1,52,600

====== ==========

On 1^st April, 2015, they admitted C as a new partner on the following conditions:

i) C brings in Rs 40,000 as his share of capital but he is unable to bring any amount for goodwill.

ii) The new ratio between A, B and C will be 3:2:1.

iii) Claim on account of workmen compensation is Rs 3,000.

iv) To write off bad debts amounting to Rs 6,000.

v) Creditors are to be paid Rs 2,000 more.

vi) Rs 2,000 be provided for an unforeseen liability.

vii) Outstanding expenses be brought down to Rs 1,200.

viii) Goodwill is valued at 1-1/2years purchase of average profits of last three years, less Rs 12,000. The profits of last three years were Rs 10,000; 20,000; 30,000 resp.

Prepare Revaluation A/c, Capital A/c and the new Balance Sheet.

Q:10 X and Y are partners in a firm sharing profits in the ratio of 3:2. The remaining capitals of X and Y after adjustments are Rs 80,000 and 60,000 resp. They admit Z as a partner on his contribution of Rs 35,000 as capital for 1/5^th share to be acquired equally from both X and Y. The Capitals of the old partners are to be adjusted on the basis of the proportion of Z’s capital to his share in the business. Calculate the amount of actual cash to be paid off or brought in bt the old partners for the purpose.

Q:11 A and B are partners in a firm sharing profits in the ratio of 3:1 . they admitted K as a new partner for 3/8^th share . The new ratio will be 3:2:3. K brought rs 2,00,000 for his capital and Rs 50,000 for his share of goodwill. Their Balance Sheet as at 31^st March, 2015 was:

Liabilities	Rs	Assets	Rs
Creditors Outstanding expenses A’s Capital B’s Capital	60,000 20,000 4,00,000 1,00,000	Cash Machinery Debtors Stock Furniture	90,000 2,10,000 80,000 1,50,000 50,000

5,80,000 5,80,000

On 1^st April, 2015, they admitted C as a new partner on the following conditions:

i) Stock to be valued at Rs 2,00,000.

ii) Machinery will be depreciated by 12% and furniture by Rs 2,000.

iii) A provision of 5% for bad and doubtful debts will be made on debtors.

iv) The Capitals Accounts of all the partners were adjusted in the New ratio after admission. For surplus or deficiency, the Current Accounts were to be opened.

Prepare Revaluation Account, partner’s Capital A/c and the Balance Sheets.

Q:12 Why is there a need to revalue assets and liabilities at the time of admission of a partner?

Q:13 The Capitals of A and B were Rs 1,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation profit was Rs 30,000. C brought Rs 10,000 for his share of goodwill premium. C has to bring in proportionate capital. Calculate C’s Capital.

Q:14 The Capitals of A and B were Rs 1,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation profit was Rs 30,000. C is unable to bring his share of goodwill premium of Rs 10,000.

Calculate the total amount C will bring to become a partner and pass necessary entries.

Q:15 The Capitals of A and B were Rs 4,00,000 and Rs 2,00,000. A new partner, C is admitted for 1/5^th share. At that time Reserves existed in the books at Rs 40,000 and Revaluation loss was Rs 30,000. C brought Rs 1,80,000 for capital but is unable to bring his share of goodwill premium of Rs 10,000.

Pass necessary journal entries at the C’s admission if capitals of the partners is to be adjusted on the basis of C’s proportionate capital contribution.

Q:16 Capitals of A, B and C as on 31-3-2015 were 36,000;44,000 and 52,000 resp. Goodwill appeared in the Balance Sheet at Rs 20,000 and P&L A/c credit balance was Rs 14,000. Revaluation loss amounted to Rs 11,100. D brings in Rs 36,000 towards 1/6^th share and partners to readjust their capital accounts on the basis of their profit sharing ratio. D is not in a position to bring in any amount for his share of goodwill. The adjustment of excess or deficit capital is to be made through Current accounts.

Pass the entry/entries regarding adjustment of capitals.

Accountancy Class 12

Chapter: 1 and 2

Fundamentals of Partnership and Goodwill

Q1 Vinod, Shubh and Gaurav were partners sharing profits in the ratio of 1:1:1. Their fixed capitals were Rs.2,00,000 each. Manager of the firm will be paid 10% commission after charging such commission. Vinod has advanced Rs.1,00,000 to the firm as loan on 1 July, 2012. Partnership deed is silent on interest on loan to the partner. A guaranteed amount of Rs.30,000 will be paid to Gaurav whether there is profit or loss incurred by the firm. Profit on 31st December, 2012 was Rs.25,000. Show the distribution of profit or loss to the partners

Q2 Vinod and Kumar are partners sharing profits and losses in the ratio of 3:2. Their capitals were Rs.1,00,000 and Rs.50,000 respectively. Rate of Interest on capital is 10% p.a. Show the distribution of profit when: Case 1: Partnership deed is silent as to interest on capital and profit for the year is Rs.30,000. Case 2: Partnership deed provides for interest on capital but there is loss Rs.20,000. Case 3: Partnership deed provides for interest on capital and profit for the year is Rs.20,000. Case 4: Partnership deed provides for interest on capital and profit for the year is Rs.9,000. Case 5: Interest on capital is a charge and profit for the year is Rs.9,000. Case 6: Interest on capital is a charge and loss for the year is Rs.5,000

Q3 A, B, C and D are partners sharing profits and losses in the ratio of 4:3:3:2. Their fixed capitals on 31.3.2010 were Rs.30,000; Rs.45,000; 60,000 and 45,000 respectively. After preparing the final accounts for the year ended 31.3.2011. it was discovered that interest on capital @12% p.a. was not allowed and interest on drawings amounting to Rs.1,000; 1,250; 750 and 500 respectively was not charged. Give necessary adjustment entry.

Q4. PK, MK and NK shared profits in the ratio of 3:2:1. The profits of the last three years were Rs.2,80,000, Rs.1,68,000 and Rs.2,12,000 respectively. These profits were by mistake, shared equally for all the three years. It is now decided to correct the error. Give entry

A partnership firm earned net profits during the last three years as follows: Years Profit

2007-08 38,000

2008-09 44,000

2009-10 50,000

The Capital Employed in the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs.20,000 per annum. Calculate the value of goodwill on the basis of (i) Two years purchase of super profits earned on average basis during the above mentioned three years and (ii) Capitalization method.

Q.5 A, B and C were partners in a firm having capitals of Rs. 60,000, Rs. 60,000 and Rs. 80,000 respectively. Their current account balances were A- Rs. 10,000, B- Rs. 5000 and C- Rs. 2000 (Dr.). According to the partnership deed the partners were entitled to an interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p. a. The profits were to be divided as follows:

(i) The first Rs. 20,000 in proportion to their capitals.

(ii) Next Rs. 30,000 in the ratio of 5:3:2.

(iii) Remaining profits to be shared equally.

During the year the firm made a profit of Rs. 1,56,000 before charging any of the above items.

Prepare the profit and loss appropriate on A/C.

Q.6 A and B are partners sharing profits in proportion of 3:2 with capitals of Rs. 40,000 and Rs. 30,000 respectively. Interest on capital is agreed at 5 % p.a. B is to be allowed an annual salary of Rs. 3000 which has not been withdrawn. During 2001 the profits for the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs. 12,000. A provision of 5% of this amount is to be made in respect of commission to the manager.

Prepare profit and loss appropriation account showing the allocation of profits.

Business Studies Class XII

Test ch-11 (Marketing management)

M.M. : 36 Time 1 hour 10 min

1. 'Glow and Shine Ltd.' is a famous beauty brand offering organic beauty products for men and women. The company uses plant-based materials for its products and is the No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet. Identify the marketing management philosophy being followed by 'Glow and Shine Ltd.' (1)

2. From customer’s pint of view, product is bundle of utilities. “In light of this statement, explain three types of utilities or benefits offered by product.(3)

3. Simone, a budding entrepreneur wishes to operate a business of Flowers. Since they are perishable in nature, she plans to open a flower shop so that she can directly sell them to the customers. Being a small ventures, the number of consumers is also less. So she decides that the direct channel of distribution is better. Her friend, Ankit is a manufacturers of Gift. Items. He is confused regarding the level of channel he should follow. Can you guide him regarding the problem? Give points for support of yours answer. (3)

4. Nisha, a school bag manufacturer decided to improve the product for profit maximisation and thus added a water bottle holder to the existing design.

Identify the marketing management philosophy adopted by Nisha, and

Explain the philosophy on the basis of Main Focus and Means and Ends (3)

5. In 2002 Cadbury, the confectionary giant came up with an advertisement to promote its brand Temptations. The newspaper ad featured map of India showing Jammu and Kashmir shaded over. Written in bold across the shaded area was the message 'too good to share'. Discuss the objection to advertising highlighted through this case. Critically analyse any three other objections to advertising. State the value ignored by Cadbury while issuing such an advertisement.(4)

6. As a project work in Business Studies subject, the Commerce students of “Knowledge School’ though of setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise books to be used by the school students. They approached their principal who not only appreciated the idea of the students but also give her consent for the same. The school also decided to donate 50% of the revenue generated from the sale of registers and exercise books to a nearby blind school.

(a) State the product related decisions which the children have to take.

(b) Suggest any two factors the children should keep in mind while choosing the right name for their exercise books and registers.

7. Vasvi was a student of Commerce in class XII. Her father was a farmer, who grew different varieties of wheat and was well versed about various aspects of wheat cultivation. He was also selected by the government for a pilot-project on wheat cultivation. As a project she decided to study the feasibility of marketing good quality wheat at reasonable price. Her father suggested to her to use internet to gather customers' views and opinions. She found that there was a huge demand for organic-packed wheat. She knew that there were no pre-determined specifications in case of wheat, because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of 'Mahan-organic-wheat' and classified it into three different varieties namely Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three functions of marketing, with reference to the above paragraph. (5)

8. One of the element of marketing mix is related to revenues of business .Name it and explain factors affecting that element.(6)

9. Various tools of communication are used by the marketers to promote their products”. Answer the following questions:

a) Why do companies use all tools at the same time?

b) Name and explain the most commonly used non-personal tool of promotion which is paid for by the marketer.

c) Which tool of promotion will primarily be used for the following:

(i) To get good corporate image without being paid for.

(ii) An existing product meant for mass usage by literate people.

(iii) To introduce new product to a particular class of people through door to door visits.(6)

Business Studies Class XII

Ch -1 NATURE AND SIGNIFICANCE OF MANAGEMENT

Case Studies

Q1. Delhi CM Mr. Arvind Kejriwal launched Odd Even rule for cars in Delhi to cut pollution by restricting the number of cars running on city road.

a) Identify and explain the objective of Management highlighted by our Chief Minister in the above case.

Q2. Mrs. Wason passed her MBBS examination and also passed MS examination as an eye specialist. After 2 years of completing her studies she joined a big hospital as an eye surgeon. Now she is performing successfully since last few years. Mr. Madan founder of CTA feels that Mrs. Wason is experiencing the aspect of science and Ms. Sachdeva feels that she is experiencing the aspect of Art. Who is right? Give reasons in support of your answer.

Q3 Shiv Nadar, chairman and CEO of HCL attributes the success of the group to its management team and their entrepreneurial spirit which together have enabled it to handle rapid changes in the environment and technologies. At HCL management believes that happy, satisfied and self motivated employees help in reducing costs and increase productivity. It also has a strong sense of social responsibility and has set up educational institutions in the field of management, engineering, computers etc.

Identify and explain the significance of understanding management by quoting relevant lines from the case study.

Q4 Raman agreed to be an employee of a company on the condition that he will be given a project offering competitive salary, career advancement opportunity, promotion and recognition. Mr. John, (general manager) puts Raman in a project in which promotion is not possible. Raman gets disheartened and feels frustrated all the time. Such frustration also reflected in his work and he could not bring desired results.

(a) Which objective of management Raman could not achieve? Explain.

(b) Identify the other two objectives.

Q5 Vineet joined a company after completing graduation in management from a reputed business school. During his induction training, he was informed that he would be working in production department. The company wanted to achieve 30% increase in output in the next quarter. His general manager, a man with decades of experience, also said that management is a complex activity. He expected Vineet to make production plans, identify incentive schemes for workers to make their strengths effective and ensure that there is no disruption due to technical glitch. Vineet realised very quickly that his job is a series of continuous tasks. After one month, he was informed by the general manager that due to increase in international demand, production targets have been raised.

He called an urgent meeting of his supervisors and senior workers. He offered them an opportunity to realise their potential and earn more by working overtime and in multiple shifts. He was delighted that at the end of the quarter, he was able to meet the targets, workers were happy and there was no chaos.

Identify and explain any four characteristics of management referred in above case.

Q6 The production manager assigned a target of producing 1,000 TV sets in the month of October among the group of 10 workers. They mutually decided to produce 100 TV sets each. Among them 3 of the workers of the group fell sick. The other worker refused to divide his work among and concentrated only on the production of their own individual target of production the group target of 1,000 TV sets could not be achieved..

(i)Which characteristic of management is violated in the above para?

Q7 XYZ Power Ltd. Set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. They revenue earned by the company was sufficient to cover the costs and the risks. The demand of the lanterns was increasing day-by-day. So the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunities were available in that area. They company also decided to open school and creches for the children of its employees.

(i) Identify and explain the objectives of management discussed above.

(ii) State any two values which the company wanted to communicate to the society.

Q8 Kamal, Khan and Devid are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and Devid in Dairy Farming. One day there was a serious discussion between Khan and Devid regarding the nature of 'Management as a Science'. Khan argued that Management was not a science whereas Devid was of the opinion that Management was a science. Kamal intervened and corrected both Khan and Devid about the nature of Management as a Science with the help of his knowledge of Business Studies. Explain, how Kamal would have been able to satisfy both Khan and Devid.

Q9 Shahrukh Khan is an epitome of success. He adds humour and humane touch in his performances at the live shows. He has redefined the image of a lead actor in cinema and given it a ‘negative, sympathetic and glamorous look’. A manager also redefines and creates styles and techniques based on his experience and imagination. Identify the nature of management form the given statement

Q10 Alia Enterprises, a company was initially producing grinders and mixers. Now, with the changing scenario and emerging trends of working women there is a greater demand for a product which is more efficient and a multi-tasker. On analyzing the situation, the company decided to penetrate into the market for producing Food Processor. Which level of management will take this decision?

Q11 Sushil is running a business enterprise producing handloom and handicraft products in Maharashtra under the name ‘Fabmart Enterprises’. He has employed 1,000 craftsmen and artisans in his firm. The basic reason for its existence is to produce those handicraft items which have a market demand & are reasonably priced. He performs all the functions of management all the time with the help of his managers. He is working with a team of individuals who have diverse needs and goals. He along with his marketing experts conducts market survey to know the tastes and preferences of consumers. Thus he adapts to changing environment and produces goods according to the needs of the customers. The employees working in his firm are happy and satisfied, and there is orderliness instead of chaos.

Identify any five features of management from the above para. Also quote lines that denote these features

Q12 Amar Ltd.is engaged in production of electrical goods The company’s profits and market share are declining. The production department blames the marketing department for not meeting the sales targets and the marketing department blames the production department for producing goods which are not of good quality and do not meet the customer’s expectations. The finance department blames both the production and marketing departments for declining return on investment.

1.What quality of management do you think the company is lacking?

2.List its two features

3.List any two values which are ignored by employees of Amar Ltd.

Q13 What distinguishes a successful manager from less successful manager is ability to put the principles and methods of management into practice .What aspect of nature of management is being highlighted here.

Business Studies Class XII

TEST: Chapter 3

Business Environment

MM: 28 Time: 50 min

1. What do you mean by environmental scanning? (1)

2. “The understanding of business environment helps the managers to identify threats. What is meant by ‘threats’ here?(1)

3. Govt. of India allowed oil marketing public sector undertaking to fix their own price for petrol and diesel. Which economic reform is the reason of this change in Govt. policy? (1)

4. In America, a few large scale retail stores have been established wherein there is a large electronic touch screen displaying the products available for sale. The customers just need to register themselves, and select the products, give the quantity required, in the electronic trolley. The order will be placed therein. The packed products will be available at the counter after a specified time period. And then the payment will be made electronically. Which dimension of business environment is mainly highlighted? (1)

5. Justdial.com was the first company that identified the needs of customers and firms and customized their services in accordance with them and today this service is a huge success.

a) Identify and explain the importance of business environment given in the above mentioned case.

b) Also explain two more points of importance of business environment (3)

6. Lina Ltd. is a company manufacturing designer sock .While making its plan, the company takes into consideration the business environment. It constantly adapts itself to changes in the environment by making changes in its plan. However, it becomes difficult for the managers of the company to accurately foresee future trends in the environment. Competition in the market upsets its financial plans, then sales targets have to be revised and accordingly cash budgets also need to be modifies since they are based on sales figures. Which two features of business environment are highlighted in the above lines? Explain and quote the lines also? (3)

7. Explain Market Orientation and more demanding customer as impact of government policy changes .(3)

8. The court issued the order that for vehicle to be smokeless was most essential and that any one violating this order have to pay a heavy fine. Abiding by this order was necessary for the health of people. Making this strict order of the court as the base, ‘Ishaan Motors Limited’ resolved to manufacture such vehicle by using modern technology as should not produce any smoke at all. The government also announced to provide help in several ways to set up such industrial units.

(a) Identify the three Dimensions of Business Environment described in the paragraph above by quoting the relevant lines.

(b) Write about any one of the values for society granted by the court.(4)

9. Explain, in brief, any five ways in which Indian Managers are responding to changes in business environment.(5)

10. Neena, after completing her MBA, took up a job with a multinational company named 'HUL'. The company was paying good salaries to the employees that helped the employees to have a good standard of living. Neena was very happy in this organization but due to long working hours she did not have time to cook her meal. She had to depend upon outside food, which was deteriorating her health. She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home cooked food. She identified this as a great opportunity & decided to give up her job to supply packed home cooked food to office goers at a reasonable price, after her father told her about the Start Up India project taken up by the PM Mr.Narinder Modi. She got her company registered under the Companies Act 2013 with the name CURRY2U Pvt. Ltd .She took orders online and provided home delivery. At the end of the day she was also distributing the leftover food in the nearby night shelters.

Business Studies, Class XII

Assignment- Principles of management

MM: 21 Time 40 Min

1. Define “Scientific management.(1)

2. What do you mean by Paternalistic style of management(1)

3. What is significance of Gang Plank?(1)

4. Lok Seva Clinic does not display any information relating to any free medical treatment to BPL(Below Poverty Line) Card holders even after the court's orders and charges high for consultation from its patients and refuses to treat poor patients. Moreover, the female medical staff does not treat such patients with due care due to insufficient salaries. It also pays attention to the medical representatives and agents of drug manufacturing companies and takes gifts and commissions also.

By quoting the lines, identify the principle of management which is being violated. (1)

5. Rohit keeps machines, materials, tools etc., ready for operations by concerned workers. Whose work is described by this sentence under functional foremanship? (1)

6. Name two contemporary techniques of business process which are aimed at standardizing the work.(1)

7. Shiva Ltd. was not performing well. After detailed analysis it was discovered that workers of the Production Department were not satisfied with the behavior of Mr. Ajay, the production manager, as workers were forced to work for long hours without any rest. Keeping this in view this the management decided to replace Mr. Ajay with Mr. Vijay who had recently completed his M.B.A. from IIM Ahmedabad. Mr. Vijay did a detailed analysis of work which involved heavy manual labour. He allowed small pauses to the workers so that they could recharge their energy for optimum contribution.

a) Name and explain the technique of Scientific Management adopted by Mr. Vijay.

b) He further desires to find out the best ways of doing a job. Suggest to him the technique of scientific management.

c) State the `Value’ emphasized by allowing small pauses to workers(3)

8. Identify technique or principle of scientific management applicable in following statements :

a) It is an extension of the principle of division of work and specialization to the shop floor.

b) Taylor advocated separation of planning and execution functions

c) Mental revolution involves a change in the attitude of workers and management towards each other

d) The true intentions of management and workers are one and the same and the prosperity of the one cannot exist without the prosperity of the other

e) It violates one of the principle given by Henry Fayol

f) In Japanese companies, If at all workers go to strike they wear a black badge but work more than normal working hours to gain the sympathy of the management.(3)

9. Differentiate between Time study and Motion study.(3)

10. The directors of Bhupender Ltd., an organisation manufacturing computers, want to double the sales and have given this responsibility to their sales manager. The sales manager has no authority either to increase the sales expenses or appoint new salesmen. Hence, he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain, in brief, the relevant principle in support of your answer.(3)

11. ‘Aapka Vidyalaya’ believes in holistic development of students and encourages team building through mix of curricular, co-curricular activities. On its founders day a stage performance had to be put up, a committee of 10 prefects was constituted to plan different aspects of the functions. They all decided to use re- cycled paper for decoration. There was a spirit of unity & harmony and all members supported each other. With mutual trust and belongingness the programme was systematically planned & executed. Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning & executing the programme. He was so inspired by the success of the function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.

(i) Identify the principle of management applied for the success of the programme.

(ii) Write two consequences if that principle is violated (3)

Sunday, 6 May 2018

Accountancy Worksheet CLASS XII

Chapter : Fundamentals of Partnership

Q:1 A, B and C started a firm on 1^st Oct, 2017 sharing profits equally. A drew regularly Rs 4,000 in the beginning of every month for the six months ended 31^st March, 2018. B drew regularly Rs 4,000 at the end of every month for the six months 31^st March 2018. C drew regularly Rs 4,000 in the middle of every month for the six months ended 31^st March, 2018.

Calculate interest on drawings @ 5%p.a for the period ending 31^st March 2018.

Q:2 A, B and C are partners in a firm. Though there is no provision in the Partnership Deed for interest on capital, this has been provided to the accounts @5% p.a for the two years ended 31^st March, 2017 and 31^st March 2018. Their fixed capitals on which interest was calculated throughout were A Rs 50,000 B Rs 40,000 and C Rs 30,000. During the two years they shared profits as follows:

2016-17 5:3:2.

2017-18 2:2:1

You are required to pass an adjustment entry as at 1^st April, 2018.

Q:3 The capitals of X, Y and Z as on 31^st March 2018 amounted to Rs 1,50,000 Rs 5,50,000 and Rs 11,00,000 resp. the profits amounting to Rs 3,00,000 for the year 2017-18 were distributed in the ratio of 4:1:1 after allowing interest on capital @ 10% pa. During the year each partner withdrew Rs 50,000 per month in the beginning of each month. The Partnership Deed was silent as to profit sharing ratio and interest on drawings but provided for interest on capital @ 12% pa. Pas adjustment entry.

Q:4 A, B and C started business on July 1 2015. You find that:

i) A drew Rs 8,000 in the beginning of every month for 9 months ending 31^st March 2016.

ii) B drew Rs 8,000 at the end of every month for 9 months ending 31^st March 2016.

iii) C drew Rs 8,000 every month for 9 months ending 31^st March 2016.

Calculate interest on drawings @ 10% p.a.

Q:5 A and B are partners sharing the profits and losses in the ratio of 3:2 with capitals of Rs 2,00,000 and Rs 1,00,000 resp. Show the distribution of profits in the following cases:

i) If the partnership deed is silent as to interest on capital and the profits for the year are Rs 50,000.

ii) If the partnership deed provides for interest on capital @ 8% p.a. and the losses for the year are Rs 50,000.

iii) If the partnership deed provides for interest on capital @ 8% p.a. and the profits for the year are Rs 50,000.

iv) If the partnership deed provides for interest on capital @ 8% p.a. and the losses for the year are Rs 15,000.

v) If the partnership deed provides for interest on capital @ 8% p.a. even if it involves the firm in losses and the profit for the year are Rs 15,000.

Q:6 A and B entered into partnership with capitals of Rs4,00,000 and Rs 2,00,000 resp and agreed to share profits and losses in the ratio of 3:2. Their partnership deed provides that interest on capital shall be allowed at 6% p.a. and it is to be treated as a charge against profits. Prepare the relevant account to allocate the profit in the following cases:

i) Profit for the year is Rs 80,000.

ii) Profit for the year is Rs 20,000.

iii) Loss for the year is Rs 20,000.

Q:7 Shikha and Fatima were partners in a firm sharing profits in the ratio of 5:3. Their fixed capitals on 1.4.2017 were : Shikha Rs 3,00,000 and Fatima Rs 4,00,000. They agreed to allow interest on capital @ 12% p.a and to charge on drawings @ 15% p.a. The profit of the firm for the year ended 31.3.2018 before all above adjustments were Rs 63,000. The drawings made by Shikha were Rs 10,000 and by Fatima Rs 20,000 during the year. Prepare Profit and Loss Appropriation A/c. The interest on capital will be allowed even if the firm incurs a loss.

Q:8 A, B and C started a business in partnership. A contributes Rs 50,000 for the whole year. B introduces Rs 40,000 at first and increased it to Rs 46,000 at the end of four months but withdraws Rs 16,000 at the end of 9 months. C invests Rs 80,000 at first but withdraws Rs 20,000 at the end of 5 months.

Firm earned a profit of Rs 23,750 during the year. You are required to show the division of profits on the basis of the effective capital employed by each partner during the year.

Q:9 X, Y and Z are partners sharing profits and losses in the ratio of 3:2:1. After the final accounts have been prepared, it was discovered that interest on drawings had not been taken into consideration. The interest on drawing of partners amounted to Rs X Rs 2,550, Y Rs 1,850 and Z Rs 1,000. Give the necessary adjusting journal entry.

Q:10 R and S were partners in a firm sharing profits in 3:2 ratio. Their resp fixed capitals were Rs 10,00,000 and Rs 15,00,000. The partnership deed provides the following:

i) Interest on capital @ 10% p.a.

ii) Interest on drawings @ 12% p.a.

During the year ended 31.3.2016, R’s drawings were Rs 10,000 per month drawn at the end of every month and S’s drawings were Rs 20,000 per month drawn in the beginning of every month. After the preparation of final accounts for the year ended 31.3.2016 it was discovered that interest on R’s drawings was not taken into consideration.

Calculate interest on R’s drawings and give necessary adjusting entry for the same.

Q:11 Praveen, Sahil and Riya are partners having fixed capitals of Rs 2,00,000, Rs 1,60,000 and Rs 1,20,000 respectively. They share profits in the ratio of 3:1:1. The Partnership Deed provided for the following which were not recorded in the books:

i) Interest on Capital @5% p.a.

ii) Salary to Praveen Rs 1,500 p.m. and to Riya Rs 1,000 p.m.

iii) Transfer of profit to General Reserve Rs 10,000. Net profit for the year ended 31^st March, 2015 distributed among the partners was Rs1,00,000.

Pass necessary rectifying entry for the above adjustments in the books of the firm.

Also show your working clearly.

Q:12 The partners of a firm distributed the profits for the year ended 31^st March, 2016, Rs 90,000 in the ratio of 3:2:1 without providing for the following adjustments :

i) A and B were entitled to a salary of Rs 1,500 each per annum.

ii) B was entitled to a commission of Rs 4,500.

iii) B and C had guaranteed a minimum profit of Rs 35,000 p.a. to A.

iv) Profits were to be shared in the ratio of 3:3:2.

Pass necessary journal entry for the above adjustments in the book of the firm.