Bihar Board 12th Entrepreneurship Model Question Paper 1 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections: Section – A and Section – B.
5. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
The term ‘Fund’ as used in Fund Flow Analysis means:
(a) Cash only
(b) Current Assets
(c) Current Liability
(d) Excess of current Assets over Current Liabilities.
Answer:
(d) Excess of current Assets over Current Liabilities.

Question 2.
Networking capital means:
(a) C.A – C. L.
(b) C.A. + C.L.
(c) C. L. – C.A.
(d) None of the above
Answer:
(a) C.A – C. L.

Question 3.
A. E. P. = _________
(a) \(\frac { FixedCost }{ \frac { P }{ V } Ratio }\)
(b) \(\frac { FixedCost }{ \frac { P }{ V } Ratio } \times 100\)
(c) \(\frac { \frac { P }{ V } Ratio }{ FixedCost }\)
(d) None of these
Answer:
(b) \(\frac { FixedCost }{ \frac { P }{ V } Ratio } \times 100\)

Question 4.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 5.
Capital Intensive technique is favoured due to:
(a) Rapid economic growth
(b) Social influence
(c) Increase in employment opportunities
(d) All of the above
Answer:
(d) All of the above

Question 6.
Management is an art of:
(a) doing work himself
(b) taking work from others
(c) both for doing work himself and taking work from others
(d) All
Answer:
(c) both for doing work himself and taking work from others

Question 7.
Out of the following which is the method of quality control?
(a) Inspection method
(b) Statistical Quality Control Method
(c) Both A and B above
(d) Neither A nor B above
Answer:
(c) Both A and B above

Question 8.
Dividend paid on cumulative preference share:
(a) In the year of profit
(b) In the year of loss
(c) In the year of profit or loss
(d) None of these
Answer:
(a) In the year of profit

Question 9.
The best example of variable cost is:
(a) Interest on capital
(b) Material cost
(c) Wealth tax
(d) Rent
Answer:
(b) Material cost

Question 10.
Generally, diversification is classified in
(a) Two ways
(b) Three ways
(c) Four ways
(d) Five ways
Answer:
(c) Four ways

Question 11.
Is it necessary to give due consideration on internal resources
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for external resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 12.
Incentives are not concerned with:
(a) Rebate
(b) Exemption from Tax
(c) Provision of seed capital
(d) Lump-sum payment
Answer:
(c) Provision of seed capital

Question 13.
Which of the following is known as Market Demand?
(a) Demand Forecasting
(b) Real Demand
(c) Supply
(d) None of the above
Answer:
(a) Demand Forecasting

Question 14.
Which of the following factors are to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) All of the above
Answer:
(d) All of the above

Question 15.
Selection of an enterprise depends on:
(a) Sole Trading
(b) Right of Entrepreneur
(c) Self Ability of Entrepreneur
(d) None of the above
Answer:
(d) None of the above

Question 16.
An entrepreneur prefers which form of an organization if production is to be undertaken on a small scale basis?
(a) Sole Trader
(b) Partnership
(c) Company
(d) None of the above
Answer:
(a) Sole Trader

Question 17.
Project identification deals with:
(a) Viable Product idea
(b) Logical opportunity
(c) Effective demand
(d) None of these
Answer:
(a) Viable Product idea

Question 18.
The techno-economic analysis deals with the identification of the
(a) Supply potential
(b) Demand potential
(c) Export potential
(d) Import potential
Answer:
(b) Demand potential

Question 19.
Project appraisal is an/a
(a) Export Analysis
(b) Expert Analysis
(c) Profitability Analysis
(d) None of the above
Answer:
(c) Profitability Analysis

Question 20.
Various public utility undertaking has to invest heavily in:
(a) Current Assets
(b) Fixed Assets
(c) Fictitious Assets
(d) None of the above
Answer:
(b) Fixed Assets

Question 21.
Pay-back period deals with:
(a) The period required for-profit earning process
(b) The period required for the cost of investment recovery
(c) The period required for fixed cost recovery
(d) None of the above
Answer:
(b) The period required for the cost of investment recovery

Question 22.
The project life cycle is not concerned with the following:
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilisation stage
Answer:
(d) Stabilisation stage

Question 23.
Which of the following is the main problem connected with business?
(a) Profit
(b) money
(c) Sales
(d) Risk Management
Answer:
(d) Risk Management

Question 24.
What creates perfection in .the market which ultimately increases the volume of sales & profit?
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(c) Marketing

Question 25.
Short-term forecast involves a period of how many months?
(a) 12 months
(b) 24 months
(c) 18 months
(d) 36 months
Answer:
(a) 12 months

Question 26.
Business Regulatory framework is concerned with what
(a) Direction of Business
(b) Volume of Business
(c) Regulation
(d) None of the above
Answer:
(b) Volume of Business

Question 27.
The product which is more in demand are more
(a) Less profitable
(b) Possible
(c) More profitable
(d) None of the above
Answer:
(c) More profitable

Question 28.
Out of the following formulating of the general plan of a business depends?
(a) Project Report
(b) Plant and Product Planning
(c) Marketing Planning
(d) Financial Planning
Answer:
(d) Financial Planning

Question 29.
What break-even point shows:
(a) Profit
(b) Loss
(c) Neither Profit nor Loss
(d) None of these
Answer:
(c) Neither Profit nor Loss

Question 30.
The best example of Fixed cost is:
(a) Interest on capital
(b) Material cost
(c) Wealth Tax
(d) None of these
Answer:
(a) Interest on capital

Question 31.
What is the thing that enterprise do? The paths they follow and the decision they take in order to reach certain points and levels of success:
(a) Production
(b) Distribution
(c) Marketing
(d) Strategies
Answer:
(d) Strategies

Question 32.
Out of the following, what is essential to study in the feasibility study?
(a) Cost
(b) Price
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 33.
What is included in the nature of marketing?
(a) Product Planning
(b) Classification of product
(c) Consumer
(d) Customer
Answer:
(c) Consumer

Question 34.
Social behaviour is not concerned with:
(a) Production of goods for public
(b) Avoidance of unethical behaviour
(c) Fulfilment of social obligations.
(d) Profit earning process
Answer:
(d) Profit earning process

Question 35.
Business opportunity relates to:
(a) Commercially feasible project
(b) Personal feasible projects
(c) Neither A nor B above
(d) None of the above
Answer:
(a) Commercially feasible project

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
Why is entrepreneurship regarded as a creative activity?
Answer:
Entrepreneurship is creative in the sense that it involves the creation of value. By combining the various factors of production, entrepreneurs produce goods and services that meet the needs and wants of society. Every entrepreneurial act results in income and wealth generation. Even when innovations destroy the existing industries.

Entrepreneurship is creative also in the sense that it involves innovation introduction of new products, the discovery of new market and sources of supply of inputs, technological break thoughts as well as the introduction of newer organisational forms for doing things better, cheaper, faster and in the present context, in a manner that causes the least harm to the environment. It is possible that entrepreneurs in developing countries may not be pioneering innovative in introducing path-breaking, radical innovations.

Question 2.
What do you understand by Micro Environment?
Answer:
The microenvironment is the first pillar to build a business empire. All marketing plans, strategies and objectives are carried out through these components. It is, therefore, the executive arm of business where the practical implementation of ideas, thoughts, and concepts are done and based on the responses of these components, a business either moves forward or may step back.

Question 3.
What do you mean by market environment?
Answer:
Marketing Environment is the combination of external and internal factors and forces which affect the company’s ability to establish a relationship and serve its customers. The marketing environment of a business consists of an internal and external environment.

Question 4.
What is the object of project appraisal?
Answer:

• To extract relevant information for determining the success or failure of a project.
• To apply standard yardsticks for determining the rate of success or failure of a project.
• To determine the expected costs and benefits of the projects.
• To arrive at specific conclusions regarding the project.

Question 5.
What is factoring?
Answer:
Factoring is a transaction in which a business sells its invoices, or receivables, to a third-party financial company known as a “Factor”.
Factoring is known in some industries as “accounts receivables financing”.

Question 6.
Give the definitions of Fund Flow Statement.
Answer:
A fund flow statement is a statement prepared to indicate the increase in the cash resources and the utilisation of such resources of business during the accounting period.

Question 7.
What do you mean by Ratio Analysis?
Answer:
Ratio analysis is the process of determining and interpreting numerical relationships based on financial statements. A ratio is a statical yardstick that provides a measure of the relationship between variables or figures. This relationship can be expressed as a percent.

Question 8.
How is break-even point determined?
Answer:
Break-even analysis related to the study of cost and return investment in relation to the sales of a business unit. That point or level of sales at which the business makes no profit and no loss is termed as the break-even point. Break-even point can be applied from two viewpoints- Narrow viewpoint and broad viewpoint, from the narrow viewpoint break-even analysis is a technique which determines that level of work at which the total return is equal to total expenditure. That is why this is known as the point of no profit no loss.
Break-point is the point at which the following characteristics are observed:

• The firm is neither earning any profit nor undergoing any loss i.e. it is in a state of no profit no loss.
• The total return of the firm is equal to the total cost.
• Amount of contribution (Sales-variable cost is) equal to the fixed cost.

Because of the above characteristics of the break-even point, it is also known as ‘Equilibrium point’ or ‘balancing point’ ore ‘critical point’.

Question 9.
Who is an Entrepreneur?
Answer:
The term ‘entrepreneur’ was first introduced in economics by the early 18th-century French economist Richard Cantillon. The entrepreneur as the agent who buys means production at certain prices in order to sell the produce at uncertain prices in the future. “ Since then a perusal of the usage of the term in economics shows, that entrepreneurship implies risk uncertainty bearing coordination of productive resources; introduction of innovation; and the provision of capital.

Question 10.
State the two objectives of identification of business opportunities.
Answer:
Following are the objectives of identifying business opportunities:

• Identify the sources of business ideas.
• Explain methods for generating business ideas.
• Identify various entrepreneurial opportunities.
• Understand the nature of the occupational and geographical mobility of entrepreneurs.

Question 11.
Give any two objectives of environmental scanning.
Answer:
Two objectives of environment scanning are mention below.

• Environmental scanning is the process of gathering information about the event and their relationship within an organisation’s internal and external environments.
• Environmental scanning is to help management determine the future direction of the organisation.

Question 12.
Mention any two objects of the project report.
Answer:
Two objectives of project report are following.

• To evaluation of environment opportunity.
• It is necessary to present the report for taking financial help.

Question 13.
What do you’re mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payment. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discount.

Question 14.
Why time boundness is essential in a project?
Answer:
Project is a written account of various activities undertaken by a firm or entrepreneurs and their technical, commercial and social feasibilities. Project is made after analysis of essential document therefore there is a time limit for making project because of the project is made for particulars time and subject.

Question 15.
What is the marketing mix?
Answer:
Marketing mix implies a combination of all marking elements or ingredients so that the objective of the enterprise may be realised. The marketing mix is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces will best achieve the objectives of an enterprise at a given time.

Question 16.
List any two problems faced by first-generation entrepreneurs?
Answer:
List of problems faced by first-generation entrepreneurs.

• Business ideas issues.
• Lack of finance.
• Inability to market their business.
• Not knowing how to plan the business.
• Legal question.

Question 17.
What do you mean by market assessment?
Answer:
Market Assessment: Goods are produced and facilitate for providing services are created in anticipation of their demand the ultimate aim of these activities is that these reach these for whose these are meant. The commodities are needed for consumption and used by the ultimate consumers. The services are utilized by whose Who was want to derive satisfaction out of them.

Question 18.
What is market observation?
Answer:
Market observation is a market research techniques in which highly trained researchers generally watch how people or consumers behave and interact in the market under natural conditions. It is designed to give precisely detailed and actual information on what consumers do as niche.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
Why the environmental study is essential for an entrepreneur?
Answer:
The process of environmental scanning and analysis is very important to an entrepreneur. The evaluation of the existing changing circumstances the forecasting and the consequent impacts need to be assessed by an entrepreneur prior to determining his policies and planning and their successful implementation. It is essential to evaluate and analyse the consequences of the changing business environment prior to giving a tangible shape to the planning and policies.

The technical innovation, new social values, problems of the community, product – market conditions etc. Must be subjected to study which is instrumental in converting strategies and planning into reality. The competitive environment and its consideration is also an integral part of environmental scanning. To plan or conceive the counter-strategies in view of the competitive threats, the environmental study and analysis is the pre-requisite in this regard by a close study and a survey of the competitive threats, the environmental.

Question 20.
How would you execute the set up of an enterprise?
Answer:
The study of these five constituents is essential for the emergence of an enterprise.

• Labour or men: In all the resources of production, the ingredient of labour is the most mobilising element that stimulates all other factors and turns even the most useless thing into a useful one.
• Raw material: If the enterprise is production oriented a prior arrangement should be emphasised with regard to availability, type, cost/price and regular supply of the raw materials.
• Machine: Whatever be the scale of the enterprise whether big or small, machines are required in either case.
• Money: Money/capital is the lifeblood of an enterprise without which the establishment is an inconceivable presumption. The capital in the long and short term and its amount and the capital resources are a pre-emptive requirements
• Market: A prior estimate is to be formed in terms of the market-consumption before the establishment of the enterprise.
• Place: It is also an important aspect and be decided where the enterprise should be set up.

Question 21.
What problems should be properly considered in the expansion of a business enterprise? Elucidate.
Answer:
(i) Cash flow management: Cash flow problems are the second most common reason why small businesses go but according to research from CB Insights. Owners have to spend money to make money during a growth period, but this concept can quickly get out of control and leave you in a precarious position.

(ii) Responding to the competition: A funny thing happens when your company is successful- others recognize the opportunity and enter the industry. Many small business owners are unprepared for the realities of fierce competition, and they quickly lose their way in an attempt to respond.

(iii) Nurturing a great company culture: Your company culture is affected by everyone involved with your organization. As you grow and more people come into your company’s orbit, it becomes more difficult to exert control over your culture and you run the risk of having it drailed.

(iv) Learning when to delegate and when to get involved: There are times when entrepreneurs need to get personally involved in specific decisions, such as big – picture strategic planning and hiring for key positions. Then there are times where it is important to delegate and trust that your managers will make the best decision for their team and the company.

(v) Keeping up with market changes: If your company operates in a sector that experiences frequent upheaval, you have to be prepared for constant change. Internalize the idea that disruption is the new normal and work on training your employees to be agile in the face of uncertainty.

(vi) Deciding when to abandon a strategy: Sometimes marketing channels that seemed full of potential don’t pan out and new product lines don’t catch on as anticipated failures are an important part of business growth and owners must train themselves to recognize where they occur, divert resources accordingly and learn from those mistakes.

Question 22.
Describe the factors affecting working capital.
Answer:
Factors affecting the working capital:
There are the following factors affecting the working capital as:
(i) Nature and size of Business: The working capital depends on the nature of the business to a great extent. If a business is engaged in the production process more working capital will be required on other hand business firms engaged in trade activities will ‘require less working’ capital.

(ii) Business cycles: The need for working capital keeps on increasing or decreasing according to the business cycle. During Boom periods the businessman tries to keep the maximum possible stock of goods in order to escape from the price increase.

(iii) Term of Buying & Selling: If businessman buy the necessary material for cash he requires more working capital. If the business unit has the policy of credit sales, more working capital will be required.

(iv) Duration of Production: The amount of working capital also depends upon the time taken in the manufacturing of a product. If the time required for the manufacture of the product is more, more working capital is needed to be.

(v) Volume & Procurement of Raw Material: If the amount to be spent on raw material is more in total investment more working capital will be required.

(vi) Manual Vs Automation: If a business unit uses automatic machines for production less working capital will be required. If the production is labour oriented like the workers engaged in tea, coffee, rubber etc. More working capital will be required.

(vii) form of Taxation: Government policy of taxation also influences the need for working capital more capital will be required if all taxes are to be paid in advance, otherwise, the need will be less.

(viii) Seasonal goods: If business units are engaged in such goods in which seasonal conditions play an important role need for working capital will be felt according to seasonal requirements.

(ix) The intensity of competition: If the market competition is intense, more amount of working capital is required as a competitive firm has to keep huge quantities of a long-range of products.

(x) Business growth: If a business is expanding it requires more money for raw materials wages etc.

Question 23.
What are the factors affecting the identification of business opportunities?
Answer:
Responsibilities of each entrepreneur of the environment are any kind of tampering with the environment in terms of filing, pollution, contamination, etc. is a serious offence which is causing great harm to the present generation. In assertion, it is raising a question mark on the fate of the coming generation. No doubt, the industrial units do cause pollution, more or less, to the environment, and it is the prime responsibility of an entrepreneur not to harm the environment in any way. The industrial waste, raw residual, etc., must not be thrown into the water, its right use should be encouraged. Personal profit should not be the sole consideration here to the extent that the environment is polluted. The government is very serious about it and does not permit, even then an entrepreneur ought to be considerate at his own in this regard.

Question 24.
Explain the meaning, definition and objective of Financial Management.
Answer:
The financial manager in order to achieve the objectives of financial management performs many functions:
(i) Estimating the financial requirements: The financial manager has to estimate the financial requirements both for long and short periods. The long term financial needs means for procuring fixed assets and part of current assets and short term requirements are meant for providing the current assets.

(ii) The decision about capital structure: After estimating the longterm financial requirements the next step is to decide about the sources from where these funds would be raised. The financial manager explores and assesses the various long-term sources in the light of requirements of the enterprise and then decides what specific sources to tap and low much to raise form each of these in the overall interest of the organisation.

(iii) Dividend Decision: It is for the finance manager to make suggestions in respect of dividend payment. He looks into the trends of earnings, share market prices the funds required for future growth, the cash flow situation, etc and recommends to the top management how much of earnings should be earmarked for payment of dividend and how much should be retained in the business.

(iv) Cash management: The finance manager has to ensure that adequate cash is available for various purposes with minimum cost, that the rate of cash inflow is accelerated and that of cash outflow decelerated, that suitable arrangements exit for meeting situation of foreseen or unforeseen shortage of cash and that adequate steps are taken to keep at the bare minimum level cash lying idle with the cashier and or at the bank.

(v) Report with investors: Many parties like financial institutions, banks, underwriters, public etc. Invest money in the organisation, the finance manager establishes close links with them, supplies them the necessary information and negotiates to get financial assistance from them.

Bihar Board 12th Accountancy Model Question Paper 5 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. In Section – A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
7. In Section – B there are Non-objective type questions. There are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Income & Expenditure Account is
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(c) Nominal A/c

Question 2.
Legacy should be treated as
(a) liability
(b) capital receipt
(c) revenue receipt
(d) None of these
Answer:
(a) liability

Question 3.
Specific donation is
(a) Capital Receipt
(b) Revenue Receipt
(c) Assets
(d) None of these
Answer:
(a) Capital Receipt

Question 4.
Subscriptions received by an organisation is
(a) Capital Receipt
(b) Revenue Receipt
(c) Both
(d) None of these
Answer:
(b) Revenue Receipt

Question 5.
Current Account is
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 6.
Making partnership agreement is
(a) compulsory
(b) voluntary
(c) partly compulsory
(d) None of these
Answer:
(a) compulsory

Question 7.
For the firm interest on partner’s drawing is a/an
(a) expense
(b) income
(c) loss
(d) receipt
Answer:
(b) income

Question 8.
In the partnership firm, profit and loss are shared
(a) equally
(b) ratio of capital
(c) according to agreement
(d) none of these
Answer:
(c) according to agreement

Question 9.
P/L Appropriation A/c is prepared
(a) for reserve fund
(b) for net profit
(c) for divisible profit
(d) none of these
Answer:
(c) for divisible profit

Question 10.
Interest on advance given to the firm is
(a) an appropriation
(b) profit
(c) charge
(d) none of these
Answer:
(c) charge

Question 11.
The excess of average profit over the normal profit is called
(a) super profit
(b) Fixed profit
(c) Abnormal profit
(d) normal profit
Answer:
(a) super profit

Question 12.
The monetary value of the reputation of the business is called
(a) goodwill
(b) surplus
(c) abnormal profit
(d) none of these
Answer:
(a) goodwill

Question 13.
Profit or loss on revaluation is borne by
(a) old partners
(b) new partners
(c) all partners
(d) only two
Answer:
(a) old partners

Question 14.
Excess of the credit side over the debit side of Revaluation Account is
(a) profit
(b) loss
(c) receipt
(d) expense
Answer:
(a) profit

Question 15.
The opening balance of Partner’s Capital A/c is credited with
(a) interest on capital
(b) interest in drawing
(c) drawing
(d) share in loss
Answer:
(a) interest on capital

Question 16.
Share of goodwill brought in cash by the new partner is called
(a) Assets
(b) Profit
(c) Premium
(d) none of these
Answer:
(c) Premium

Question 17.
On the retirement of a partner, the full amount of goodwill is credited to the capital accounts of
(a) retiring partner
(b) remaining partners
(c) all partners
(d) none of these
Answer:
(d) none of these

Question 18.
Gaining Ratio is calculated
(a) at the time of admission
(b) at the time of retirement
(c) on the dissolution
(d) none of these
Answer:
(b) at the time of retirement

Question 19.
Profit & Loss on Revaluation at the time of retirement is shared by
(a) remaining partners
(b) all partners
(c) new partners
(d) none of these
Answer:
(a) remaining partners

Question 20.
A, B and C are partners sharing profit & loss in the ratio of 5 : 3 : 2. A retires. The gaining ratio is
(a) 3 : 2
(b) 5 : 3
(c) 5 : 2
(d) None of these
Answer:
(c) 5 : 2

Question 21.
The amount due to the deceased partner is paid to his
(a) Father
(b) Friend
(c) Wife
(d) Executors
Answer:
(d) Executors

Question 22.
On the death of a partner in a firm final payment are made to
(a) Capital A/c
(b) Executor A/c
(c) Current A/c
(d) Loan A/c
Answer:
(b) Executor A/c

Question 23.
The executors of a deceased partner will be paid interest on the amount from the date of death of the partner at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(b) 6% p.a.

Question 24.
Joint life policy of the partners is an _______ account.
(a) nominal A/c
(b) personal A/c
(c) liability
(d) goodwill.
Answer:
(b) personal A/c

Question 25.
Revaluation A/c is prepared at the time of
(a) Admission
(b) Retirement
(c) Death
(d) All of these
Answer:
(d) All of these

Question 26.
Payment of credit balance of partners Capital Account at the time dissolution of a firm is made to
(a) partners
(b) firm
(c) wife
(d) none of these
Answer:
(a) partners

Question 27.
Realisation expenses are recorded in which side of Realisation Account?
(a) Liabilities
(b) Assets
(c) Debit
(d) Credit
Answer:
(b) Assets

Question 28.
At the time of dissolution of the firm book value of assets is recorded in which side of the Realisation A/c?
(a) Debit side
(b) Credit side
(c) Liabilities side
(d) Assets side
Answer:
(a) Debit side

Question 29.
Realisation Account is a
(a) Personal A/c
(b) Nominal A/c
(c) Real A/c
(d) None of these
Answer:
(b) Nominal A/c

Question 30.
On the dissolution of a firm, Partners Capital A/c is closed through
(a) Realisation A/c
(b) Drawing A/c
(c) Bank A/c
(d) None of these
Answer:
(c) Bank A/c

Question 31.
Expenses on the dissolution of a firm is called
(a) Realisation expense
(b) Legal expense
(c) Loss expenses
(d) None of these
Answer:
(a) Realisation expense

Question 32.
A firm can be voluntarily dissolved by the partners
(a) on majority’s decision
(b) on \(\frac{3}{4}\) of the member’s decision
(c) on \(\frac{1}{2}\) of the member’s decision
(d) none of these
Answer:
(b) on \(\frac{3}{4}\) of the member’s decision

Question 33.
On the firm’s dissolution which one of the following A/c should be prepared at the last?
(a) Realisation A/c
(b) Cash A/c
(c) Capital A/c
(d) Loan A/c
Answer:
(a) Realisation A/c

Question 34.
On dissolution, Goodwill A/c is transferred to
(a) Realisation A/c
(b) Capital A/c
(c) Drawing A/c
(d) Loan A/c
Answer:
(a) Realisation A/c

Question 35.
At the time of dissolution of a firm. Balance of general reserve shown in the Balance sheet is credited to
(a) Realisation A/c
(b) Creditors A/c
(c) Capital A/c
(d) Profit & Loan A/c
Answer:
(c) Capital A/c

Question 36.
Cash balance shown in the Balance Sheet is shown on the dissolution of the firm in
(a) Realisation A/c
(b) Cash A/c
(c) Capital A/c
(d) None of these
Answer:
(b) Cash A/c

Question 37.
On dissolution of a firm. Bank overdraft is transferred to
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Capital A/c
Answer:
(c) Realisation A/c

Question 38.
On dissolution of a firm, Partners Loan A/c is transferred to
(a) Realisation A/c
(b) Capital A/c
(c) Current A/c
(d) None of these
Answer:
(c) Current A/c

Question 39.
Shares may be issued
(a) at par
(b) at premium
(c) at discount
(d) all of these
Answer:
(d) all of these

Question 40.
Equity shareholders are _______ of the company.
(a) Bankers
(b) Creditors
(c) Debtors
(d) Owners
Answer:
(d) Owners

Question 41.
Money received from a dead man’s legacy is called
(a) Legacy
(b) Honorarium
(c) Donation
(d) Subscription
Answer:
(a) Legacy

Question 42.
Payment of honorarium to the secretary is:
(a) Capital expenditure
(b) Revenue expenditure
(c) Cash expenditure
(d) Deferred Revenue Expenditure
Answer:
(b) Revenue expenditure

Question 43.
Interest is to be given a partner to the firm in the absence of partnership deed.
(a) 5%
(b) 6%
(c) 8%
(d) 9%
Answer:
(b) 6%

Question 44.
Interest on capital will be given to the partners in the absence of a partnership agreement
(a) 5%
(b) 6%
(c) 8 %
(d) nome of these
Answer:
(d) nome of these

Question 45.
The current account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 46.
Drawings of the partners debited to:
(a) Partners capital A/c
(b) Profit & Loss A/c
(c) P & L appropriate A/c
(d) Revaluation A/c
Answer:
(a) Partners capital A/c

Question 47.
Interest on parter’s capital is to be credited
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Partners Capital A/c
(d) Revaluation A/c
Answer:
(c) Partners Capital A/c

Question 48.
Excess of real profit on general profit is called
(a) Super profit
(b) Definite profit
(c) Abnormal profit
(d) General profit
Answer:
(a) Super profit

Question 49.
A and B are the partners of profit is divided in 3 : 1. They give a \(\frac{1}{4}\) part of profit in future and admitted in. New profit-distribution ratio is:
(a) Explanation/Working
(b) A \frac{81}{16}: B \frac{4}{16}: C \frac{4}{16}
(c) \(A \frac{10}{16}: B \frac{2}{16}: C \frac{4}{16}\)
(d) \(A \frac{8}{16}: B \frac{9}{16}: C \frac{10}{16}\)
Answer:
(a) Explanation/Working

Question 50.
X and Y are partners of profit into 3 : 2. Z become partner for \(\frac{1}{5}\) share Z takes from X \(\frac{3}{20}\) and from Y \(\frac{1}{20}\). Then new profit ratio is:
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 × 2 = 30)

Question 1.
What Journal entry will be recorded for the amount payable to a deceased partner?
Answer:
Profit and Loss of Suspense A/c … Dr.
To deceased partner’s capital A/c
(Being deceased partner’s capital A/c credited with his share in profit)

Question 2.
On dissolution, what entry is passed if a partner takes over an asset of the firm?
Answer:
Partner’s capital A/c …Dr.
To Realisation A/c
(Being assets were taken over by partners.)

Question 3.
State four features of Receipts and Payments Account.
Answer:
Following are the four features of Receipt and Payment Account:

• It is a Real Account
• It records all receipts whether it Revenue or capital in nature in the debit side
• It records all Payments in credit side, whether it is revenue or capital in native
• It doesn’t record any non-cash item. i.e. Depreciation, outstanding etc.

Question 4.
State four features of a partnership.
Answer:
Following are the essential features of a partnership firm:

• Two or More Persons: There must be two or more competent Persons to form a Partnership firm.
• Agreement between the Partners: Partnership is created by an agreement which forms the basis of mutual rights and duties of Partners. This agreement may be either oral or in writing.
• Engagement in legal business: The Partnership should be for carrying on some legal business with the intention of earning profits.
• Sharing of Profit: Profit earned should be divided amongst Partners in the agreed Profit sharing ratio.

Question 5.
Explain three factors affecting goodwill.
Answer:
Some Following Factors affecting the value of goodwill.

• Location: A Favourable location of the business helps to a great extent in attracting customers.
• Nature of Business: The nature of the business also affects the value of goodwill.
• Time: An older business will have more goodwill since it is better known to the customers.
• Risk Involved: The more the risk involves in the business, less the nature of goodwill.

Question 6.
Distinguish between the Average Profit Method and Super Profit Method of calculating goodwill.
Answer:
Distinguishment between Super profit method and Average profit method of calculating goodwill. Super profit method Under this method, super profits constitute the basis of calculation of the value of goodwill. And hence, goodwill is calculated by multiplying the super-profits by a reasonable number of years.
Formula:
Goodwill = Super profit × Agreed on number of year’s purchase.
Where Super profit = Actual average profit – Normal profit.
Average profit method: Under average profit method, goodwill is valued on the basis of the agreed number of years’ because of the average profits of the last few years.
Formula:
Goodwill = Average profit × Number of years purchase.

Question 7.
How will you calculate the amount due to a deceased partner?
Answer:

Question 8.
A, B and C are partners sharing the profit in the ratio of 3 : 2 : 1. They admit D for 1/6 the share. It is agreed that C would retain his original share. Calculate New Ratio.
Answer:

Question 9.
P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and his share was divided equally between P and R. Calculate new profit sharing ratio of P and R.
Answer:
Q’s Share will be divided between P and R equally:

Question 10.
Distinguish between the dissolution of partnership and dissolution of the firm.
Answer:
Difference between the dissolution of partnership and dissolution of firm are as fellow:

• Change in relation: The dissolution of the firm implies a complete break-down of the partnership relationship between all the partners whereas dissolution of the partnership merely involves a change in the relation of the partners.
• Continuance of business: In the case of dissolution of a firm the business comes to an end whereas in case of dissolution of partnership the business of the firm is continued.
• Effect: Dissolution of partnership does not necessarily mean the dissolution of the firm whereas dissolution of the firm necessarily implies the dissolution of a partnership.
• Closure of Books of Accounts: On dissolution of the firm all accounts books are closed whereas in case of dissolution of partnership closure of books is not required.
• Nature: Dissolution of the partner is voluntary whereas dissolution of the firm is voluntary and compulsory.
• Court order: The firm may be dissolved by the order of the court whereas dissolution of the partnership is a process of reconstitution.
• Disposal of Assets and Liabilities: In case of dissolution of partnership assets and liabilities are revalued and new Balance sheet is drawn. But in case of dissolution of a firm, assets are realised and liabilities are paid off.

Question 11.
In what circumstance can a firm be dissolved?
Answer:
Following are the circumstances under which a firm can be dissolved

• Retirement of any of the partner
• Death of any of the partner
• Any of the partners declared as insolvent
• The incapability of any partner
• Completion of the venture
• At the expiry of the term of the partnership.

Question 12.
State the ways of redemption of debentures.
Answer:

• Payment in annual Installment
• Purchase own debenture in the open market

Question 13.
State two objectives of Financial Statements.
Answer:
Two objectives of Financial statements

• Source of Financial Information
• Help in Financial Forecasting
• Information about Earning capacity.

Question 14.
State two limitations of analysis of Financial Statement.
Answer:
Two Limitation of Financial Analysis

• Lack of Preciseness
• The problem of Interpretation.

Question 15.
State two objectives of ratio analysis.
Answer:
Two objectives of ratio analysis

• To measure the profitability of the concern
• To assess the solvency of the business
• Facilitate comparative analysis.

Question 16.
Give two examples of cash flow from operating activity.
Answer:
Two examples

• Cash sale of goods
• Receipt from debtors.

Question 17.
What do you mean by Fixed Charges and Floating Charges?
Answer:
Fixed charges are made on specific assets of a company, on the other hand. Floating charges are made on
General assets of a company.

Question 18.
What is the difference between Reserve and Provision?
Answer:

Question 19.
What is meant by Analysis of Financial Statement?
Answer:
The analysis is the process of critically examining the accounting information given in financial statements. For this purpose of analysis, individual items are studies, their inter-relationship with other related figures is established.
According to Finley and Miller,”Financial analysis consists in separating facts according to some definite plan, arranging them in groups according to certain circumstances and then presenting them in a convenient and easily readable and understandable form.”

Question 20.
What is meant by Comparative Financial Statement?
Answer:
Comparative Financial Statement: Statement showing financial data of Balance Sheet or profit & loss statement for two or more than two years, placed side by side to facilitates comparison is called comparative financial statements. This type of analysis is called horizontal analysis.

Question 21.
Distinguish between preference share and equity share.
Answer:

Question 22.
State any three differences between shareholders and debenture holders.
Answer:

Question 23.
Why is Cash flow statement prepared?
Answer:
Cash Flow Statement is one of the important tools of cash management because it throws light on cash inflows of cash equivalents during a specific period. This statement exhibits the flow of incoming cash. This statement assesses the ability of the enterprise to generate cash and utilise the cash. And so cash flow statement is one of the tools for assessing the liquidity and solvency of the enterprises.

Question 24.
Current Ratio is 2 : 1. Working Capital is Rs. 1,50,000. Calculate the amounts of current assets and current liabilities.
Answer:

Question 25.
What do you mean by the company? State its essential features.
Answer:
A company means a company incorporated or registered under the Companies Act, 2013 or under any other earlier companies Act.

It a voluntary association of persons formed for some common purpose having a capital divided into transferrable shares. It is created by law and effected by law. A company may be defined as an artificial person created by law, having perpetual succession and a common seal.

According to L.H. Haney. “A company is an artificial person created by law having a separate entity with perpetual succession and a common seal. It is a voluntary association of individuals for-profits, having a capital divided into transferrable shares ownership of which is the condition of membership.”

Following are the essential features of the company:

• Association of persons: A company is an association of persons, usually for profit.
• Artificial person: It is an artificial person created by law.
• Separate legal entity: It has a separate legal entity from its members. So it can be sued in its own name. It can own or dispose of the property in its own name.
• Limited liability: It has limited liability. Liability of members is limited to the extent of the face value of shares need by them.
• Perpetual succession: A company being an artificial person never dies. It is a creation of law, so, its existing law. It is not affected by the death of shares held by them.
• Common seal: It has a common seal which acts as the official signature of the company. Any document without the common seal of the company is not binding on the company.
• Transferability of shares: The capital of a company is divided into shares. The shares of a company are transferable except in case of a private company.
• Separate ownership and management: In companies, there is a divorce between ownership and management. It is owned by members (shareholders) but it is managed by the Board of Directors who are elected by shareholders. Members of a company can not directly participate in the management of the business of the company.

Long Answer Type Questions

Question No. 26 to 33 are long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
Form the following statement of profit and loss of the year ended 31st March 2014, prepare a comparative statement of profit and loss of X Ltd:

Answer:

Question 27.
Receipts and Payments A/c of Maitree Club for the year ended March 31, 2013, shows that the subscriptions received were Rs. 25,000. Additional information is as follows:

Ascertain the amount of income from a subscription for the year 2012-13 and show how relevant items of subscriptions appear in Opening and Closing Balance Sheet.
Answer:
Statement showing Income from a subscription for the year ended 2012-13

Question 28.
A, B and C are equal partners. Their fixed capitals as on 1st April. 2012 were A Rs. 10,000, B Rs. 20,000 and C Rs. 30,000. Profits for the year 2012-13 amounted to Rs. 12,000 which were distributed. Give the necessary Journal entries if the interest on capital was credited @ 10% p.a. instead of 12% p.a.
Answer:

Question 29.
X, Y and Z are partners in a firm in the ratio of 3 : 2 : 1. On 1st April 2013 they decided to share profits in future in the ratio of 7 : 5 : 4. On that date general reserve is Rs. 76,000 and profit on revaluation of assets and liabilities being Rs. 68,000. It was decided that adjustment should be made without altering the figures in the Balance Sheet. Make adjustment by one Single Journal entry.
Answer:

Question 30.
A, B and C are partners sharing profits and losses equally. They dissolved the firm on 30th December 2013 on which date their positions were as under:

All the assets realise less than 10% book value. Creditors were paid in full. Expenses of realisation amounted to Rs. 500. Prepare Realisation account. Partners Capital account and cash or bank account.
Answer:

Question 31.
Rudra Company Ltd. issued 35,000 equity shares of Rs. 10 each at a premium of Rs. 2 payable as follows:
On Application – Rs. 3
On Allotment – Rs. 5
The balance on the first call
Record Journal entreis.
Answer:

Question 32.
Urvashi Ltd. purchased one established business for Rs. 50,000 payable Rs. 15,000 in cash and the balance by Issue of 9% debentures of Rs. 100 at a discount of 10%. Give journal entries in the books of Urvashi Ltd.
Answer:

Question 33.
From the following data, prepare a statement of profits in the comparative form:

Answer:

Bihar Board 12th Accountancy Model Question Paper 2 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. In Section – A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
7. In Section – B there are Non-objective type questions. There are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Receipts and Payments Account usually indicates:
(a) Surplus
(b) Capital fund
(c) Debit Balance
(d) Credit Balance
Answer:
(c) Debit Balance

Question 2.
Receipts and Payments Account is a:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(b) Real Account

Question 3.
Outstanding subscription is a:
(a) Income
(b) Asset
(c) Both ‘A’ and ‘B’
(d) None of these
Answer:
(b) Asset

Question 4.
Income and Expenses related to the prize fund is shown in:
(a) Income and Expenditure Account
(b) The asset side of the Balance sheet
(c) Liabilities side of the Balance sheet
(d) Cash Account
Answer:
(a) Income and Expenditure Account

Question 5.
Income and Expenditure Account records:
(a) All cash receipts and payments
(b) All credit receipts and payments
(c) All cash and credit receipts and payments
(d) None of these
Answer:
(a) All cash receipts and payments

Question 6.
Which sequence is correct and appropriate?
(a) Cashbook, Receipts & Payment Account, Income & Expenditure Account and Balance sheet.
(b) Receipts and Payments Account, Cash Book, Income and Expenditure Account and Balance sheet
(c) Income and Expenditure Account, Receipts and Payments account, cash book and Balance sheet.
(d) None of these
Answer:
(c) Income and Expenditure Account, Receipts and Payments account, cash book and Balance sheet.

Question 7.
The main aim of the Not-for-Profit organisation is:
(a) To earn profit
(b) To serve society
(c) To earn profit and serve society
(d) All the above
Answer:
(b) To serve society

Question 8.
Payment of Honorarium to Secretary is a:
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both
(d) None of these
Answer:
(a) Revenue Expenditure

Question 9.
Which of the following statements is correct?
(a) There is no difference between Cash Book and Receipts and Payments Account
(b) Receipts and Payments Account is prepared after Cash Book
(c) Receipts and Payments Account is maintained by Non-trading concern whereas Cash Book is maintained by the Trading concern
(d) Receipts and Payment Account is prepared before Cash Book
Answer:
(c) Receipts and Payments Account is maintained by Non-trading concern whereas Cash Book is maintained by the Trading concern

Question 10.
When the time of withdrawals is not mentioned, interest on drawings is charged:
(a) For 6 1/2 months
(b) For 6 months
(c) For 5 1/2 months
(d) For 12 months
Answer:
(b) For 6 months

Question 11.
Recording of the unrecorded asset on the reconstitution of a partnership firm will be.
(a) Again to the existing partner
(b) A loss to the existing partner
(c) Neither a gain nor a loss to the existing partner
(d) None of these
Answer:
(b) A loss to the existing partner

Question 12.
Current Account is:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(a) Personal Account

Question 13.
In which ratio, the cash brought in for goodwill by the new partner is shard by the existing partners.
(a) Profit-Sharing Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) None of these
Answer:
(c) Sacrificing Ratio

Question 14.
A, B and C are three partners sharing profits and losses in the ratio of 4 : 3 : 2. D is admitted for 1/10th share, the new ratio will be:
(a) 10 : 7 : 7 : 4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these
Answer:
(c) 4 : 3 : 2 : 1

Question 15.
The executors will be paid interest on the amount due from the date of death of the partner @
(a) 4%
(b) 5%
(c) 6%
(d) 7%
Answer:
(c) 6%

Question 16.
Realisation Account is a:
(a) Personal Account
(b) Nominal Account
(c) Real Account
(d) None of these
Answer:
(b) Nominal Account

Question 17.
A firm can be voluntarily dissolved by the partners:
(a) On Majority basis
(b) On 3/4 Member’s decision
(c) On 1/2 Member’s decision
(d) None of these
Answer:
(a) On Majority basis

Question 18.
Unrecorded liabilities when paid will be shown in:
(a) The debit side of Realisation Account
(b) Debit side of Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account
Answer:
(a) The debit side of Realisation Account

Question 19.
Who are the owners of the company?
(a) Equity shareholders
(b) Preference shareholders
(c) Debenture holders
(d) Both A & B
Answer:
(a) Equity shareholders

Question 20.
Forfeiture of shares results in the reduction of:
(a) Paid-up capital
(b) Authorised capital
(c) Fixed Assets
(d) Reserve capital
Answer:
(a) Paid-up capital

Question 21.
Profit on cancellation of own debentures is transferred to:
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account
Answer:
(d) Capital Reserve Account

Question 22.
Interest on Sinking fund Investment is credited to:
(a) Profit and Loss Account
(b) Sinking fund Account
(c) General Reserve Account
(d) Sinking fund Investment Account
Answer:
(b) Sinking fund Account

Question 23.
Discount on issue of debentures is:
(a) Fixed Asset
(b) Current Asset
(c) Real Asset
(d) Factitious Asset
Answer:
(d) Factitious Asset

Question 24.
In case of issue of debentures as collateral security for a loan from the bank which account will be debited:
(a) Bank Account
(b) Bank Loan Account
(c) Debenture Account
(d) Debentures Suspense Account
Answer:
(c) Debenture Account

Question 25.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%

Question 26.
As per the provisions of Companies Act, 2013 under which section, the final Accounts of a company is prepared:
(a) 128
(b) 210
(c) 129
(d) 212
Answer:
(b) 210

Question 27.
Out of the following which parties are interested in financial statement?
(a) Managers
(b) Financial Institutions
(c) Creditors
(d) All of these
Answer:
(d) All of these

Question 28.
Debt-Equity Ratio is:
(a) Liquidity ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating ratio
Answer:
(c) Solvency Ratio

Question 29.
When the opening stock is 50,000 Rs closing stock 60,000 Rs and cost of goods sold is 2,20,000 Rs then stock Turnover Ratio is:
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times
Answer:
(c) 4 times

Question 30.
Cash flow statement is related to:
(a) AS – 3
(b) AS – 6
(c) AS – 09
(d) AS – 12
Answer:
(a) AS – 3

Question 31.
Which of the following activity comes under Financial Activities?
(a) Receipts from the issuance of Equity shares
(b) Cash sales
(c) Bank overdraft
(d) Purchase of Debentures
Answer:
(a) Receipts from the issuance of Equity shares

Question 32.
Which of the following item is not considered as cash equivalents?
(a) Bank overdraft
(b) Commercial paper
(c) Treasury Bills
(d) Investment
Answer:
(d) Investment

Question 33.
Cash from operating activities will decrease due to:
(a) Increase in current Assets
(b) The decrease in current liabilities
(c) Neither of the two
(c) Both (a) and (b)
Answer:
(b) The decrease in current liabilities

Question 34.
The term Quick assets do not include:
(a) Stock
(b) Debtors
(c) B/R
(d) Cash and Bank Balance
Answer:
(a) Stock

Question 35.
Dividends are usually paid on:
(a) Authorised capital
(b) Issued capital
(c) Called up capital
(d) Paid-up capital
Answer:
(d) Paid-up capital

Question 36.
The nominal capital is known as:
(a) Authorised Capital
(b) Registered Capital
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 37.
When a partner takes responsibility to make the payment of any outside liability of a firm, the account credited will be:
(a) Realisation account
(b) Cash Account
(c) partner’s capital Account
(d) None of these
Answer:
(c) partner’s capital Account

Question 38.
Cash balance shown in the Balance sheet is shown on the dissolution of the firm in:
(a) Realisation Account
(b) Cash Account
(c) Capital Account
(d) Profit and Loss Account
Answer:
(b) Cash Account

Question 39.
‘x’ and ‘y’ share profit in the ratio of 3 : 2. ‘z’ was admitted as a partner who gets 1/5 share, z acquires 3/20 share from ‘x’ and 1/20 from y. The new profit sharing ratio will be:
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4

Question 40.
partner’s current Account is prepared when the capital of partners is maintained under:
(a) Fluctuating basis
(b) Fixed basis
(c) In both of the situations
(d) None of these
Answer:
(a) Fluctuating basis

Question 41.
The amount received from the issue of debentures is:
(a) Capital receipts
(b) Revenue Receipts
(c) Capital and Revenue Receipt
(d) Neither capital nor revenue
Answer:
(a) Capital receipts

Question 42.
The Ideal Quick Ratio is:
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) None of these
Answer:
(b) 1 : 1

Question 43.
Goodwill is:
(a) Fixed Assets
(b) Intangible Assets
(c) Fictitious Asset
(d) Both (a) & (b)
Answer:
(b) Intangible Assets

Question 44.
Provision for Taxation is:
(a) Current liability
(b) Interval Reserve
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Current liability

Question 45.
Interest payable on debentures is:
(a) A charge against profit
(b) Appropriation of profit
(c) Both (a) & (b)
(d) None of these
Answer:
(a) A charge against profit

Question 46.
The formula of sacrificing ratio is:
(a) New Ratio-old Ratio
(b) Old Ratio-New Ratio
(c) Old Ratio-gaining Ratio
(d) None of these
Answer:
(b) Old Ratio-New Ratio

Question 47.
Subscription received in Advance is:
(a) Asset
(b) Liability
(c) Income
(d) None of these
Answer:
(b) Liability

Question 48.
Right shares are the shares which:
(a) Are issued to directors of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to vendors for purchasing assets
Answer:
(c) Are issued to promoters in consideration of their services

Question 49.
When the current ratio is 2 : 5 and the amount of current liabilities is 25000 Rs, what is the amount of current assets?
(a) ₹ 62,500
(b) ₹ 12,500
(c) ₹ 10,000
(d) None of these
Answer:
(b) ₹ 12,500

Question 50.
Which one of the following is a non-cash item?
(a) Depreciation
(b) Goodwill wrote off
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Depreciation

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 × 3 = 30)

Question 1.
What is Income and Expenditure Account?
Answer:
Income and expenditure Account is a Nominal Account. It is a summary of incomes and expenses for a
particular accounting period.lt is like a profit and loss account of a business concern. Thus, an income and expenditure Account is a revenue account of a non-profit organisation. It serves the same purpose as the profit and loss Account in trading concerns.

Question 2.
What are the Current Assets?
Answer:
Current assets is a balance sheet account that represents the value of all assets that can reasonably expect to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, prepaid, marketable securities etc.

Question 3.
Define the Sinking fund.
Answer:
A sinking fund is a means of repaying funds borrowed through a bond issue through periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. Rather than the issuer repaying the entire principal of a bond issue on the maturity date, another company buy back a portion of the issue annually and usually at fixed par value or at the current market value of the bonds whichever is less.

Question 4.
Distinguish between the Current Ratio and Quick Ratio.
Answer:
The main difference between the current ratio and the quick ratio is that the letter offers a more conservative view of the company’s ability to meets its short-term liabilities with its short-term assets because it does not include inventory and other current assets that are more difficult to liquidate. By excluding inventory the quick ratio focuses on the company’s more liquid assets.

Question 5.
Explain four characteristics of a Partnership firm.
Answer:
Following are the feature of a partnership firm:

• Two or more persons
• Agreement
• Profit-sharing
• Mutual agency.

Question 6.
What is Super Profit?
Answer:
Super profit is the excess of average profits over normal profits. Under this method, goodwill is calculated on the basis of super-profits.

Question 7.
What is a Financial Statement?
Answer:
The end product of financial accounting is financial statements. Financial statements are organised summaries of detailed information about the financial position and performance of enterprises for a particular period. Financial statements are also called financial report. The term ‘Financial statement’ normally refers to two basic statements, namely.

• Balance sheet
• Statement of profit loss.

Question 8.
What is Cash Flow Statement?
Answer:
Meaning of Cash Flow Statement: A statement of changes in financial position on a cash basis is commonly known as the cash flow statement. It shows the changes in cash position from one accounting period to another. In other words, the cash flow statement summarises the causes of changes in cash and cash equivalents position between dates of two Balance Sheets. It indicates the sources and uses of cash. This statement attempts to analyse the transactions of the firm in terms of cash. Thus, a Cash Flow Statement can be defined as a statement which summarises sources of cash inflows and uses of cash outflows of the firm during a particular period of time, says, a month or a year.

Question 9.
Distinguish between Realisation Account and Revaluation Account.
Answer:
Revaluation Account is prepared only when there is any change in the value of asset and liabilities of the partnership firm at the time of admission, retirement, and death of a partner. On the other hand, Realisation Account is opened when the firm goes into liquidation, so as to close the books of account and also to compute the effect (profit or loss) arising due to the realisation of assets and settlement of liabilities.

Question 10.
What is over-subscription of shares?
Answer:
When the number of shares applied for is more than the number of shares offered to the public the issue as said to be over-subscribed. However, a company cannot allot shares more than those offered for subscription.

Question 11.
Distinguish between Gaining Ratio and Sacrificing Ratio.
Answer:
Difference between sacrificing Ratio and Gaining ratio
Sacrificing Ratio:

• It is the ratio in which the old partners surrender their share of profit in favour of the new partner.
• It is calculated at the time of admission of a new partner.
• The purpose of calculating sacrificing ratio is to calculate the share of goodwill payable to old partners at the time of admission of a partner.
• Old Partner’s Capita! Account increase with the amount received as goodwill. New partner losses.
• It is calculated by deducting the new ratio from the old ratio.
• New Partner’s Capital A/c Dr. To Old Partner’s Capital A/c (In sacrificing ratio)

Gaining Ratio:

• It is the ratio in which the remaining partners share the retiring partner’s share of profit.
• It is calculated at the time of retirement or death of a partner.
• The purpose of calculating gaining ratio is to calculate the share of goodwill payable to the retiring partner by each of the remaining partners.
• Retiring partner gains and the remaining partners capital reduces, so they lose.
• It is calculated by deducting the old ratio from the new ratio.
• Remaining Partner’s Capital A/cs Dr. To Retiring Partner’s Capital A/c.

Question 12.
What is the forfeiture of shares?
Answer:
The term ‘forfeit’ means taking away of a thing or property on breach of a condition or default. A shareholder is liable to pay all the calls made by the company within the stipulated time. If a shareholder fails to pay allotment money and/or call money due on the shares held by him the company has right to forfeit such shares. But the company will have to follow the procedures specified in its Articles of Association. To forfeit a share means to cancel the allotment of defaulting shareholders.

Question 13.
Define Prospectus.
Answer:
The prospectus is the basis of the agreement between the company and the shareholders who take the shares on the strength of the prospectus. If they have been misleading by any statement in or omission of a material fact from the prospectus, they may

• hold the directors responsible for the loss that he may have suffered and.
• rescind the contract for taking the shares.

Question 14.
Distinguish between Revenue profit and Capital profit.
Answer:
Following are the main difference between capital profit and revenue profit.
Mode of Earning: Capital profit is earned by selling of assets, shares and debentures at a price more than their book value and face value. Revenue profit is earned in the ordinary course of business.

Distribution: Capital profit is not available for the distribution to shareholders as a dividend. Revenue profit is available for the distribution to shareholders a dividend.

Use: Capital profit is transferred to capital reserve and used for meeting capital losses. Revenue profit is used to distribute dividend and create reserve and fund for various purpose.

Treatment: Capital profit is shown on the liabilities side of the balance sheet. Revenue profit is shown as a debit balance on the debit side of the trading and profit & loss accounts and asset side of the balance sheet as an accumulated loss.

Question 15.
What is Financial Analysis?
Answer:
The financial analysis consists in separating facts according to some definite plan arranging them in groups according to certain circumstances and then presenting them in a convenient and easily readable and understandable form.

Question 16.
Distinguish between Cash Book and Receipts and Payments Account.
Answer:
Difference between Receipts and Payment Account and Cash Book.

Question 17.
What is an unlimited liability?
Answer:
The indefinite extent of liability to pay a firms debts or obligations, extending beyond the investments of the firm’s owner partners of shareholders to their personal assets. This extent of liability is assumed in an unlimited liability.

Question 18.
Distinguish between charge against profit and Appropriation of profit.
Answer:
Difference between Appropriation of profit and charge against profit.

Question 19.
Distinguish between Fixed capital and Fluctuating capital.
Answer:
Distinguish between Fixed Capital and Fluctuating Capital.

Question 20.
Write four items relating to Not-for-Proft organisation.
Answer:
Following are four items relating to Non-for-Profit organisations.

• Not-for-profit organisations are established for the welfare and service of society and their members.
• They promote art, culture, religion, education sports etc.
• They do not operate with the objective of earning profit.
• These organisations are set-up as charitable societies, trust or club etc.

Question 21.
Distinguish between ‘Charge against profit’ & ‘Appropriation out of profit.’
Answer:
Distinguish between “charge against profit” and Appropriation out of profit as discussed below.

Question 22.
Why the valuation of goodwill is required? Give a minimum of three reasons.
Answer:
The need for valuation of goodwill as discussed below:

• If any partner is admitted
• If any partner retires from the firm
• If any partner dies
• If any firm is sold
• If a firm is converted into a Company.

Question 23.
A, B and C are partners sharing profits in the ratio of \(\frac{1}{2}: \frac{1}{3}: \frac{1}{6}\). Find out new profit sharing ratio if B retires.
Answer:
Old ratio of A, B and C = \(\frac{1}{2}: \frac{1}{3}: \frac{1}{6}\) or, \(\frac{3}{6}: \frac{2}{6}: \frac{1}{6}\) = 3 : 2 : 1
B. Retires, New Radio = 3 : 1

Question 24.
Under which circumstances, a partnership firm is deemed to be dissolved?
Answer:
Under the following circumstances, a partnership firm is deemed to be dissolved

• Retirement of any of the partner
• Death of my partner
• Any of partner declared as insolvent
• In capability of any partner
• completion of the ventures
• At the expiry of the term of the partnership.

Question 25.
A, B and C were partners sharing profits in the ratio of \(\frac{2}{6}, \frac{1}{2}\) and \(\frac{1}{6}\). A retires and surrenders \(\frac{2}{3}\)rd of his share in favour of B and remaining in favour of C. Calculate new ratio and gaining ratio.
Answer:
A’s share (2/6) will be divided between B and C in the ratio of \(\frac{2}{3}: \frac{1}{3}\)
B’s gain = \(\frac{2}{3}\) of \(\frac{2}{6}: \frac{4}{18}\);
C’s gain = \(\frac{1}{3}\) of \(\frac{2}{6}=\frac{2}{18}\)
New share = old share + gaining share
B’s new share = \(\frac{1}{2}+\frac{4}{18}=\frac{9+4}{18}=\frac{13}{18}\)
C’s new share = \(\frac{1}{6}+\frac{2}{18}=\frac{3+2}{18}=\frac{5}{18}\)
New ratio of B and C = \(\frac{13}{18}: \frac{5}{18}\) or 13 : 5

Long Answer Type Questions

Question no. 26 to 33 are Long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
From the following information, calculate goodwill by (i) Capitalization method and (ii) at 3 years purchase of super-profits:
(i) Total Assets ₹ 10,00,000
(ii) External liabilities ₹ 1,80,000
(iii) Normal Rate of Return 10%
(iv) Average Net Profit of the last five years ₹ 1,00,000
Answer:
Calculation of Goodwill by using capitalization method.

10,00,000 – 820,000
Goodwill = 120,000
Net Assets = Total Assets – Liabilities = 10,00,000 – 180,000 = 820,000
Calculation of Goodwill by using super profit methods.

Super profit = 100,000 – 82,000 = 18,000
Goodwill = 180,000

Question 27.
An Ltd. company issued 5000 shares of ₹ 100 each at a premium of ₹ 5 per share payable as ₹ 20 on Application, ₹ 35 on the allotment (including premium), ₹ 30 on the first call and the balance on the second call. All the amounts were duly received except the first call money on 500 shares and the final call money on 700 shares. These shares have been forfeited and re-issued at ₹ 80 per share. Give Journal entries to record the above transactions.
Answer:

Question 28.
What is Cash Flow statement? How is it prepared?
Answer:
Meaning of cash flow statement: cash flow statement can be defined on a statement which summarises sources of cash inflows and outflows of cash and cash equivalent of the firm from various business activities during a given period. Thus, this statement exhibits the flow of incoming and outgoing cash.

Calculation of Cash Flows from Operating Activities: Almost all the companies prepare its Income Statement on the accrual basis of accounting under which revenues are recorded when earned and expenses are recorded when incurred. Because of this, net profit, as shown by Income Statement will not be equal to cash generated by operating activities. Hence, there is a need to calculate cash flows from operating activities. AS-3 (Revised) suggests two methods of reporting cash flows from operating activities:
(1) Direct Method, and (2) Indirect Method.

1. Direct Method: Under the direct method, major classes of gross cash receipts and gross cash payments are considered. Under this method, cash receipts from operating activities, i.e., cash received from the sale of goods and rendering services, cash collected from customers and cash received from trading commission and royalties and cash payments for operating activities such as payment to creditors for goods and services, employees for their services etc. are disclosed. The difference between cash receipts and cash payments is the net cash flow from operating activities. A cash flow statement based on the direct method is a Profit & Loss Account on a cash basis.

2. Indirect Method: Under this method, net profit or loss is adjusted for the effects of transactions of noncash nature and non-operating nature and changes in current assets and liabilities.

Question 29.
Calculate current Assets of a company from the following information:
Stock Turnover Ratio = 4 times
Stock at the end is ₹ 20,000 more than stock in the beginning.
Sales ₹ 300,000 and Gross Profit Ratio is 20% of sales.
Current liabilities = ₹ 40,000
Quick Ratio = 0.75
Answer:
Sales 300,000, G.P Ratio = 20%;
Cost of Goods sold = Sales – G.P.;
GP = \(=300,000 \frac{\times 20}{100}=60,000\)
300000 – 60000 = 240000
Stock Turnover Ratio = \($\frac{\text { cost of Goodwill }}{\text { Aug.Stock }}$\)
4 = 240000/Aug.stock
Aug. Stock = 240,000/4 = 60,000
Let op. stock = x
So, cl. stock = x + 20,000
Avg. Stock = \(=\frac{x+x+20,000}{2}\) = 60,000
x + 10,000 = 60,000
x = 60,000 – 10,000 = 50,000
op. Stock = 50,000
Quick Ratio = Liquid Assets/CL. Liabilities
0. 75 = L. A/400,000
L. A. = 30,000
Current Assets = L.A + C.L. Stock = 30,000 + 70,000
C.A = 10,000

Question 30.
From the following particulars, Calculate Cash Flow from Investing Activities.
Investment at the beginning of the Period: 5,80,000
Investment at the end of the Period: 3,40,000
During the year the company had sold 50% of its investment held in the beginning of the period at a profit of ₹ 90,000
Answer:

Question 31.
Pass Journal entries when shares are issued at a premium.
Answer:
Journal entries where shares are issued at a premium.
I. When share premium is payable with application money.
(i) At the time of receipt of application money.
Bank A/c — Dr.
To share Application A/c
(ii) At the time of transfer of Application Money:
Share Application A/c
To share Capital A/c
To securities premium A/c

II. When the premium is payable on Allotment.
(i) Share Allotment A/c — Dr.
To share Capital A/c
To securities Premium A/c
(ii) On receipt of Allotment Money.
Bank A/c — Dr.
To share Allotment A/c

III. When the premium is payable with share call money.
(i) Share Call A/c — Dr.
To share Capital A/c
To securities Premium A/c
(ii) When call money is received.
Bank A/c — Dr.
To share call A/c

Question 32.
From the following comparative balance sheet prepare cash flow statement as on 31st December 2016.

Depreciation charged on machinery Rs. 5,000
Answer:
Calculation of cash flow statement from operating Activities.

Question 33.
Prepare an imaginary proforma of the cash flow statement.
Answer:
Imaginary proforma of cash flow statement

Bihar Board 12th Business Studies Model Question Paper 5 in English Medium

Time : 3 Hour 15 Min
Full Marks : 100

Instructions

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefull.
4. This question paper has two sections : Section -A and Section-B.
5. In Section-A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Blade/Nail on OMR Sheet, otherwise the result will be treated as invalid.
6. In Section-B, there are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 08 Long answer type questions, out-of which any 04 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. -1 to 50 have four options provided, out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each questiion carries 1 (one) mark. [50 x 1 = 50]

Question 1.
Profession in an Art _________
(a) Work by other
(b) Self work
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Work by other

Question 2.
Project Evalution is _________
(a) 1986
(b) 1987
(c) 1968
(d) None of these
Answer:
(a) 1986

Question 3.
Risk capital establishment established For _________
(a) Import Analysis
(b) Export Analysis
(c) Both (a) and
(d) None of these
Answer:
(a) Import Analysis

Question 4.
A good Plane is ________
(a) Expensive
(b) time consuming
(c) flexible
(d) rigid
Answer:
(c) flexible

Question 5.
“Management is a profession.” This statement is of _________
(a) George R. Terry
(b) Henry Fayol
(c) American Management Association
(d) Lawrence A. Appley.
Answer:
(c) American Management Association

Question 6.
Of all managerial activities planning is the _________
(a) beginning
(b) end
(c) beginning & end both
(d) none of these
Answer:
(a) beginning

Question 7.
For delegation of authority to be effective, it is essential that accompanied with is necessary
(a) authority
(b) main power
(c) incentives
(d) Promotion
Answer:
(a) authority

Question 8.
Recruitment in the life of organisation is _________
(a) continuous
(b) occasionally
(c) once
(d) twice
Answer:
(a) continuous

Question 9.
In effective communication. language should not be used.
(a) expressive
(b) impressive
(c) ambiguous
(d) courteous
Answer:
(c) ambiguous

Question 10.
Who was the father of scientific management ?
(a) H. S. Parsons
(b) Diemer
(c) F. W. Taylor
(d) Charles Babbage
Answer:
(c) F. W. Taylor

Question 11.
Method (s) of training is /are _________
(a) conference
(b) lectures
(c) apprenticeship
(d) all of these
Answer:
(a) conference

Question 12.
Henry Fayol’s principles of management are _________
(a) 10
(b) 3
(c) 14
(d) 15.
Answer:
(c) 14

Question 13.
Financial manager takes decision as to _________
(a) finance
(b) investment
(c) dividend
(d) all of these
Answer:
(a) finance

Question 14.
Effective controlling is _________
(a) static
(b) pre-determined
(c) dynamic
(d) all of these
Answer:
(c) dynamic

Question 15.
Supervision is an element of _________
(a) leadership
(b) planning
(c) direction
(d) none of these
Answer:
(c) direction

Question 16.
Capital market deals in _________
(a) short-term funds
(b) medium-term funds
(c) long-term funds
(d) all of these
Answer:
(d) all of these

Question 17.
Consumer Protection Act was passed in _________
(a) 1886
(b) 1986
(c) 1996
(d) 1997
Answer:
(b) 1986

Question 18.
Headquarters of SEBI is in _________
(a) Delhi
(b) Mumbai
(c) Kolkata
(d) Chennai
Answer:
(b) Mumbai

Question 19.
Grapewine is _________
(a) formal Communication
(b) barriter to communication
(c) lateral communication
(d) Informal communication
Answer:
(a) formal Communication

Question 20.
Marketing includes _________
(a) Purchase
(b) Sales
(c) Warehousing
(d) All of these
Answer:
(d) All of these

Question 21.
Advertisement is deemed as _________
(a) Wastage
(b) Investment
(c) Luxury
(d) None of these
Answer:
(b) Investment

Question 22.
Bank overdraft facilities are available on _________
(a) Savings Bank Account
(b) Current Account
(c) Term Deposit Account
(d) None of these
Answer:
(b) Current Account

Question 23.
New issued shares deal in _________
(a) Secondary Market
(b) Primary Market
(c) Secondary Market and Primary Market both
(d) None of these
Answer:
(b) Primary Market

Question 24.
Budget is a statement of budgetary policy.
(a) Financial
(b) Final
(c) Work
(d) Non-financial
Answer:
(a) Financial

Question 25.
Main component (s) of New Economic Policy is/ are _________
(a) Liberalisation
(b) Globalisation
(c) Privatisation
(d) All of these
Answer:
(b) Globalisation

Question 26.
Authority cannot be delegated of _________
(a) Routine work
(b) Secret work
(c) Ordinary work
(d) None of these
Answer:
(b) Secret work

Question 27.
The proporinder of adminisimtive management was _________
(a) Fayol
(b) Taylor
(c) Terry
(d) None of these
Answer:
(b) Taylor

Question 28.
Which of the following depends on the sweet will of employees ?
(a) Formal Organisation
(b) Informal Organisation
(c) Functional Organisation
(d) Divisional Organisation
Answer:
(b) Informal Organisation

Question 29.
Co-ordination is _________
(a) voluntary
(b) necessary
(c) unnecssary
(d) waste of time
Answer:
(b) necessary

Question 30.
Fixed capital is needed for period _________
(a) short
(b) long
(c) short and long both
(d) none of these
Answer:
(b) long

Question 31.
Controlling is the aspect management.
(a) Theory
(b) Behaviour
(c) Mental
(d) Physical
Answer:
(b) Behaviour

Question 32.
Which of the following is not a characteristic of entrepreneurship ?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 33.
Comprehensive plan for accomplishing an organisation’s objectives as _________
(a) Policy
(b) Programme
(c) Objective
(d) Strategy
Answer:
(d) Strategy

Question 34.
Barrier in effective communication is _________
(a) language
(b) distance
(c) individual differences
(d) all of these
Answer:
(c) individual differences

Question 35.
Which one amongst the following is not the Consumer product _________
(a) Raw material
(b) Refrigrator
(c) Old figure
(d) Share
Answer:
(c) Old figure

Question 36.
The disputes which come under Consumer Protection Act are _________
(a) disputes as to sale of shares by a company
(b) disputes of Penal Nature
(c) disputes as to sale of defective goods by the seller
(d) service disputes.
Answer:
(c) disputes as to sale of defective goods by the seller

Question 37.
Entrepreneurial Development institute of India is situated in _________
(a) Ahmedabad
(b) Mumbai
(c) New Delhi
(d) Chennai
Answer:
(a) Ahmedabad

Question 38.
The organisation spreading rumours is called _________
(a) Formal
(b) Informal
(c) Centralised
(d) Decentralised
Answer:
(b) Informal

Question 39.
The maximum duration of commercial paper is _________
(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months
Answer:
(a) 3 months

Question 40.
Stock exchange protects the interest of _________
(a) Investor
(b) Company
(c) Government
(d) None of these
Answer:
(a) Investor

Question 41.
which following is called “The Father of Scientific Management.”
(a) Alton Meyo
(b) F. W. Taylor
(c) Feyol
(d) None of these
Answer:
(b) F. W. Taylor

Question 42.
Management is :
(a) An art
(b) A science
(c) An art and science both
(d) None of these
Answer:
(c) An art and science both

Question 43.
14 principle of management is represented _________
(a) Henry Feyol
(b) F. W. Taylor
(c) Peter Drucker
(d) A. H. Maslo
Answer:
(a) Henry Feyol

Question 44.
In which following is important step in planning ?
(a) Decision
(b) Organiation
(c) Asiimption
(d) Direction
Answer:
(c) Asiimption

Question 45.
To whom social liabilities of management :
(a) To whole society
(b) Employee class
(c) Government
(d) Organisation
Answer:
(a) To whole society

Question 46.
What is the function of management ?
(a) Planning
(b) Organisation
(c) Direction
(d) None of these
Answer:
(d) None of these

Question 47.
The main object of budgeting is :
(a) Planning
(b) Co-ordination
(c) Controlling
(d) None of these
Answer:
(c) Controlling

Question 48.
“Scope of controlling” principle represented by :
(a) Henry Feyol
(b) Alton Meyo
(c) F. W. Taylor
(d) None of these
Answer:
(b) Alton Meyo

Question 49.
In inspiration’s “the principle of originated necessities” represented by :
(a) Hurjburg
(b) Maslo
(c) Alton Meyo
(d) None of these
Answer:
(b) Maslo

Question 50
communication is that _________
(a) One-sided process
(b) Two-sided process
(c) Multiple-sided process
(d) None of these
Answer:
(a) One-sided process

Non-Objective Type Questions

Short Answer Type Questions

Question no. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 x 3 = 30)

Question 1.
State the nature and characteristics of Principles of Management.
Answer:
Management Principles : These are the statement of fundamental truth based on creation and systematic analysis which provides guidlines for managerial decision making and action.
Nature and charecteristics of management Principles are the same which are following :

1. Flexiblity
2. Univarsal application
3. lack of unanimity
4. Beharourial.

Question 2.
What do you mean by Scientific Management ?
Answer:
Meaning : Scientific management means a sound management technique that tends to eliminate wastage harmonises the different factors and processes of production and pings about an all around efficiency in the working of the organisation.

Definition : Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way.

Question 3.
State the meaning of Liberalisation.
Answer:
Industrial economy in India has always been regulated by licensing system and bureaucratic procedure regulated in red – tapism and rampant corruption.These obstacles obstructed economic growth. Liberalization is the process of freeing the economy from licence system and other regulations.
Features of liberalisation :

1. Simplifying importance export procedure
2. Simplifying the process of attracting foreign capital and technology,
3. To do away with the necessity of having a license for most of the industries
4. Removing restrictions for the movement of goods and services from one place to another
5. Freedom in determining the scale of business activities
6. Freedom to fix, the prices of goods and, services
7. Reduction in the rate of taxes
8. Freedom from unnecessary control over economy.

Question 4.
Describe the limitations of planning.
Answer:
The major limitations of planning are as follows:

1. Planning leads to rigidity : A well defined plan is drawn up with specific goals to be achieved within a specific time frame.These plans then decide the future course of action and managers may not be in the position to change it.This kind of rigidity in plans may create difficulty.
2. Planning may not work in a dynamic environment : The business environment is dynamic, nothing is constant.Planning cannot foresee everything and thus, there may be obstacles to effective planning.
3. Planning reduces creativity : Planning is an activity which is done by the top management.Usually the rest of the members just implements these plans.Thus, planning in a way reduces creativity since people tend to think along the same lines as others.There is nothing new or innovative.
4. Planning involves huge costs : When plans are drawn up huge costs are involved in their formulation.These may be in terms of time and money for example,checking accuracy of facts may involve lot of time.
5. Planning is a time – consuming proces :
   Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.
6. Planning does not grantee success.

Question 5.
What is financial management ?
Answer:
Financial management is concerned with optimal procurement as well as usage of finance for optimal procurement, different available sources of finance are identified and compared in terms of their costs and associated risks. Similarly, the finance so procured needs to be invested in a manner that the returns from the investment exceed the cost at which procurement has taken place. Financial management aims at reducing the cost of funds procured keeping the risk under control and achieving effective deployment of such funds. It also aims at ensuring availability of enough funds whenever required as well as avoiding idle finance.

Question 6.
Explain the elements of directing function of management.
Answer:
Direction includes the following elements:

1. Supervision : The term ‘supervision’ is normally used in management to mean overseeing the employees at work. Itimplies, instructing, observing, monitoring and guiding the subordinates at work place to ensure that plans and procedures are implemented as intended.
2. Communication : Communication is a process which involves a sender of- massage and a receiver.Communication is complete only when the receiver is able to interpret the massage as desired by the sender and responds to it.Communication is regarded as a two way process.The process of communication begins when one person wants to transmit a fact; idea ,opinion or other information to someone else.
3. Leadership : Leadership may be defined as the process of influencing the behavior of people at work towards the realization of specified goals.lt involves ability to use non- conceive influence on the activities,goals and motivation of others for achieving organizational objectives.
4. Motivation : Motivation is a mental state. lt is a driving force that people to action and continuous them in action.Motivation is the set of forces that cause people to behave in certain ways.

Question 7.
What is function of Stock Marketing ?
Answer
The functions of stock markets are mentioned below :

1. Liquidity : Stock exchange provides a ready market for the securities issued by various institutions.
2. Promotes the habit of saving and investment: Stock exchange promotes the habit of saving and investment among the general public.
3. Safety of Dealing : Stock exchange protects the interests of investors against malpractices or dishonesty through

(a) strict enforcement of rules and regulations, framed to protect the interests of investors,
(b) strict rules and regulation for listing of securities. In case the brokers adopt any malpractice in their dealings, their membership may be suspended for some time or cancelled or fine may be imposed.

Question 8.
Enumerate the sales promotion .
Answer:
Sales Promotion has defined by various authors as under :

1. L.KJohnson : “Sales Promotion consists of all those activities whose purpose is to supplement,to coordinate and to make more effective the efforts of the sales force,of the advertising department and of distributors and to increase sales and otherwise stimulate consumers greater initiative in buying.”
2. American Marketing Association : “Sales promotion comprises those marketing activities,other than personal selling,advertising and publicity that stimulate consumer purchasing and dealer effectiveness,non -recurrent selling efforts not in the ordinary routine.”
3. Luick and Zeiler :”Sales promotion as a tool of markets promotions gives rise to increase in product usage as well as expansion of markets for a product or introduction of a new product.”

Question 9.
Explian the four functions of management.
Answer:
The four functions of management are as follow :

(i) Planning : Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning cannot prevent problems but it can predict them and prepare contingency plans to deal with them if and when they occur, .

(ii) Organising : Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. It determines what activities and resources are required. It decides who will do a particular task, what it will be done, and when it will be done. Organizing involves the grouping of the required tasks into manageable departments or work units and the establishment of authority and reporting relationships.

(iii) Staffing : Staffing is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation. This is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.

(iv) Directing : Directing involves leading, influencing and motivation employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work. Motivating workers means simply creating an environment that makes them want to work.

Question 10.
Write short notes on function of financial management ?
Answer:
The finance all manager in order to achieve the objectives of financial management, performs many functions. These functions involve many financial decisions which may be discussed under two groups.

(a) Principle functions
(b) Supplementary functions.

(a) Principle functions :
These are the types of principle functions :

1. Estimatiay the financial Requirements
2. Decision a bout capital structure,
3. Dividend Devisions.

(b) Supplementary functions:
These are the types of supplementary functions :

1. Cash management,
2. Report with Investors
3. Stock Exchange Trends.

Question 11.
What are the advantages of partnership ?
Answer:
The advantages of partnership are as following :

1. Easy to starts : There is no complicated legal procedure to start partnership. It does not take much expenditure to start partnership. It can be started very easily.
2. Sufficient capital: Partnerhsip has more capital resources as compared to sole trade. It can even get Model larger amount of loans from other institutions on easy terms.
3. More resources : The partnership has resources, contributed by at the most ten persons in banking and twenty persons in other busness. It is also the combination of the talent of many persons, working as partners.
4. Specialization in management : A division of work in partnership is done in accordance with scientific management principles.
5. Balanced decision : Decisions are taken jointly by consulting each other, therefore, the partnership is able to take balanced decision.

Question 12.
Discuss the four points of marketing.
Answer:
The four points of marketing are :

1. Product
2. Price
3. Place
4. Promotion and are discussed as below :

(i) Product : Product means goods or services or ‘anything of value’, which is offered to the market of for exchange.
For example : Hindustan Lever Company offers, number of consumer products like toiletries (close- up, tooth paste, lifebuoy, soap ec.) The important product decisions include decisions about the features, quality, packaging, lebelling and branding of the products.

(ii) Price : Price is the amount of money customers have to pay to obtain the product. The marketers have not only to decide about the objectives of price sitting but to analyse the factors determining the price and fix a price for the firm’s products.

(iii) Place : Place or physical distribution include activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

(iv) Promotion : Promotion of products and services include activities that communicate availability features, merits etc. of the products to the target customers and persuade them to buy it. The promotional activities and spend substantial amount of money on the promotion of their goods through using number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.)

Question 13.
What is money market ?
Answer:
Enterprises need money, both for short medium and long’term. Medium and long medium and long term funds are raised in the capital market.
Short term funds are collected from the money market, short term means less than one year. Thus, money market is the market that facilitates the procurement of funds for short term or current requirements.
Some are the tools of money market-

1. Treasury Bill
2. Inter bank call money
3. Commercial paper
4. Certificate of Deposits
5. Trade bill / commercial bill

Question 14.
Define business company.
Answer:
The formation of a joint-stock company in India is to be done as per rules and guidelines envisaged in the companies act 1956. The meaning of companies business related with joint stock companies. Joint stock companies are made for profit and it is a optional institution which capital are undistributed in transferable shares. That is the mean it anybody can sell and purchase its share. The liabilities of the members are limited and general. It has a fixed existence and it is a artificial person and it is formed by common seal.

Question 15.
What are source of credit marketing ?
Answer:
In business the question of credit creditability is of almost significance in turns of an entrepreneur’s efforts on the basis of which the financial agencies and the businessman remain loyal and omitted to each other. This creditability is built on the basis of the business-man discipline creditability is achieved with a lot of efforts and difficulties and no remedy is available when it is lost. The transaction of the goods in the parties on the basis of commercial credit. It is called credit-marketing.

The sources of credit marketing are different type for example shares, debentures, banking companies and financial institutions from these sources traders get finance.

Question 16.
What is the role of profit/advantages in business.
Answer:
Roal of business should be profit maximisation some points are as follows :

1. Profit is the reward of labour.
2. Profit is the means of the satisfaction of human needs.
3. It is a measure of business efficiency.
4. Profit is the base of business protection, growth and stability.
5. Profit is the base of social responsibilities.
6. Profit is the cause of extension of various economies.
7. Profit is the base of exchange.
8. Profit is an incentive.

Question 17.
What is importance of consumer protection ?
Answer:
Consumer protection has a wide agenda. Importance of consumer protection from the consumers point of view.
Importance of consumers protection from the point of view of business are as follows :

1. Long-term interest of business : Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer base of business.
2. Business uses society’s resources : Business organisations use resources which belong to the society. They thus, have a responsibility to supply such products and render such services which are in public interest.
3. Socila Responsiblity : A business has social responsibilities towards varousnterest groups. Business organisations make money by selling goods and providing services to consumers.
4. Moral jusuficaPon : It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.

Question 18.
Explain the importance of financial planning in modern age.
Answer:
The importance of financial planning can be explained as follows:

1. It tries to forecast what may happen in future under different business situations
2. It helps in avoiding business shocks and surprises and helps the company in preparing for the future
3. If helps in co-ordinating various business functions e.g.sales and production functions,by providing clear policies and procedures
4. Detailed plans of action prepared under financial planning reduce waste,duplication of efforts, and gaps in planning
5. It tries to link the present with the future
6. It provides a link between investment and financing decisions on a continuous basis
7. By spelling out detailed objectives for various business segments,it makes the evaluation of actual performance easier.

Question 19.
Discuss the importance of communication in any business organisation.
Answer:
It is rightly said that managerial functions cannot be carried out without an efficient system of communication.We can give following arguments in favour of our decision:

1. Better coordination : Communication serves as a tool for coordinating activity.Coordination without communication is a remote possibility.Through communication employees come to know what is going on in other departments.
2. Quick decision and its enforcement : effective communication is needful for the quick
   decision.Effective communication translates the policies into effective instrument of seeing through the organisation on the veil of its progress.Effectiveness of the policies can be judged from its success which surely depends on effective communication system.
3. High morale of the employees : The effective medium of the communication develops the feeling of mutual trust.Hence,workers offer their proposals,suggestions and ideas.If suggestions of the workers are properly cared and promoted ,they will feed proud.All these help in boosting morale of the employees.

Question 20.
Explain the social responsibilities of the management.
Answer:
Social obligations means the responsibility of business to act in a manner which will serve the best interest of the society. The following are the various points which is need for assumption of social responsibilities :

1. Long-term business interest: While a business must seek to maximize profits and wealth, it must not igonre social and human problems of the society. Business is an important part of the society.
2. Government Intervention : The Government has favorable attitude towards business which fulfill their social obligations. Laws to prevent unfair trade practices, black marketing, overcharging, adulteration etc. bear proof of this.
3. Use of society’s resources : Business is a creation of the society and so it should respond to the requirements of the society. It is essential that every business enterprise should fulfill its social responsibilities.
4. Public image : If a business is conscious of its social responsibilities it will certainly enjoy a favorable image and will retain the needed credibility with the public.
5. Moral justification : Every business uses capital, physical, human resources of the society for business purposes.

Question 21.
Explain the various structures of organisation.
Answer:
The various forms of business organisations which is discussed follows :
(a) Sole proprietorship
(b) Joint hindu family business
(c) Partnership
(d) Cooperative societies and
(e) Joint stock company

(a) Sole proprietorship : Sole proprietorship is simple form of organisation. It is said that this organisation was evolved at the time when the man started living in family. As the time changed its shape and size went on changing. Only that person is responsible for its profits and losses. and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and developments.

Long Answer Type Questions

Question no. 26 to 33 are Long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4×5 = 20)

Question 26.
“Money spent on advertising is a waste.”Do you agree with this view ? Give reasons in your answer.
Answer:
“Money spent on advertising is a waste.” We do not agree with this statement.The given statement is based on the following agreements :

1. Advertising makes people to buy things which they do not really need.
2. Advertising destroys utilities of old models already in used.Advertising introduces new products with modern technology.For example with the introduction of colour television,black and white TV,become unpopular.
3. Advertising leads to discontent in the minds of those people who are temperate to purchase advertising goods but are not able to do so because they cannot afford to buy.
4. The cost of advertisement has to be borne buy the consumers.
5. Advertising tends to develop monopolices which are not desirable from social point of view .For example ,Daldavanaspati ,coalgate toothpaste ,lux toilet soap etc.have so much monopolised the market that is very difficult new manufactures to complete with these products.
6. Advertising is morely degrading .Advertisement excessive use of outrangingssetiments ,exciting .emotions nude poses of fair sex.They lower down the calculater and moral based of the new younger generation. However,abovecritictism are exaggerated and ill- founded.Advertising performs the number of economics function .Advertising leads to increase sales and helps the firm to produce on a large scale. It creates more business and it rises the standard of leaving. The utility of advertisement has proven. lt immense need to modern business and therefore we cannot say that all advertising is unnecessary and wasteful.

Question 27.
What do you mean by Entrepreneurship ?Explain any three needs of entrepreneurship.
Answer:
Entrepreneurship is a skill,a view- point ,a thinking, a technique and a working procedure. Entrepreneurship means he capability and tendency to bear risks involved in industry and business.Entrepreneurship is an art ,a tact .view point .thought and technique.Entrepreneurship is a group behavior and knowledge based activity.Following are the three needs of entrepreneurship :

1. Resource mobilizations : After getting appraisal from funding agents,entrepreneur starts identifying and assessment of various resources that are needed as inputs to produce the desired output.The types of resources to be taken care of will include:
   • Materials
   • Money
   • Machines
   • Market availability
   • Technology and
   • Human resources Entrepreneurs try their best to get these resources at minimum cost.
2. Scanning the environment : The process of setting up of an enterprise begins with the scanning of business opportunities.To scan business opportunities entrepreneur depends upon personal observations .personal and professional contacts.reports of governments and other official documents,Discoveries of new products .published documents etc.
3. Development of product of product/ service : Scanning of business environment helps the businessmen to know the opportunities available.For example, on scanning Indian and international environment one can find that due to liberalization in trade policy there is more scope, of external trade but exactly which product to export/import in which quantity,at what price,to which country ,etc.are the next decisions businessman has to take.

Question 28.
“Human beings cannot be only motivated through monetary incentives,non -incentives,non – monetary incentives are also necessary for motivate them.” Explain about non-monetary incentives in this context.
Answer:
Financial incentives are used to motivate employees for higher work.However,individuals have various needs which they want to satisfy while working in an organisation.People at comparatively higher level of managerial hierarchy attach more importance to socio- physycological needs which cannot be satisfied by money alone.

They want status and recognition in society;they want to satisfy there ego needs and they want to achieve something in their lives,thus .management ,in addition to the financial incentives provides non -financial incentives to motivate people in the organisation.

Forms of Non -financial Incentives: In order to motivate the employees .management may use the following forms of non-financial incentives:

1. Praise of appreciation of work done : Recognition of satisfactory performance acts as a non- financial incentive since it satisfies one’s ego needs.However,this incentive should be used with great care because praising an incompetent employee creates resentment among competent employees.
2. Workers’ participation in management : Participation in management provides strong motivation to the employees.Gives them psychological satisfaction if there voice is heard participants in management provides for two ways communication and so imbibes a sense of importance
3. Suggestion system : Suggestion system is an incentive with satisfies many needs of the employees. Many organisations which use the suggestion system make use of cash awards for useful suggestion .They sometimes publish the workers name with the photograph in the company magazine.This motivates the employees to be in search for something which may be of greater use to the organisation.
4. Competition : If there is healthy competition among individual employees ,group of employees ,it leads them to achieve their personal or group goals.Hence,competition acts as none financial incentives.
5. Opportunity for growth : Opportunity for growth is another kind of intensive.If the employees are provide opportunity for their advertisement and growth to develop their personality,they feel very much satisfied and more communicate to organisation goals.

Question 29.
Explain the sub-clause of Memorandum of Association.
Answer:
The memorandum of association contains the following clauses :
(i) Name clauses : Under this clause, the name of the company is stated. Any suitable name may be chosen subject to the following restrictions :

• The name of the company must not directly or indirectly incude the word ’President”, “King”, “Queen”, “Emperor”, “National Flag”, “Small soale” and cottage Industriesd”, “Federal”, “Municipal”, “Provincial” etc.
• It must not be objectionable under the provisions of the emblems, and names.
• It should not be identifcal with or resemble the name of any existing company.
• The proposed name should not be objectionable in any other manner. It must not hurt the feelings of any section, of the society.
• The name of a public company should end with the word “Limited”. In case of private company. The name should end with “Private Limited”.
• The name has to be displayed on every letter pad or any poster or display of the company.

(ii) Domicile clause : In this clause, name of the state in which the registered office of the company is to be situated is mentioned. Domicile clause is important as it determines the jurisdiction of the court.

(iii) Object clause : It is the most important clause of Memorandum of Association. It defines the limits and scope of the operations of the company. The object clause must specify the objects of the company in the following order :

• The main object of the company to be pursued by the company on its incorporation and the objects incidental to the attainment of the main objects
• Other object of the company not included in the above clause.

(iv) Liability clause : The fourth clause must state whether liability of the members is limited if so, whether it is limited by shares or by guarantee. In a company limited by guarantee, the liability clause will state the amount which each member, shold undertake to contribute to the assets of the company in the event of liquidation of the company.

(v) Capital clause : This clause, states the amount of capital, with which the company is registered, unless the company is an unlimited company. The shares into which the capital is divided must be of fixed value, which is commonly known as the nominal value of the share, the capital is variously described as “nominal”, “authorised” or “registered”. The company cannot issue shares without altering the memorandum as provided by section 94 of the companies act, 1956.

(vi) Association clause : The memorandum concludes with the subscription clause in which there is a declaration of association. The subscribers to the memorandum declare :

“We, the several persons whose names and addresses subscribed, are desirous of being formed into a company in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set opposite our respective names.”

Then follow the names, addresses, occupations of the subscribers, and the number of shares each subscriber has taken and his signatures attested by a witness

Question 30.
Discuss the importance and methods of training.
Answer:
The importance of training are as follows :

1. Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money.
2. Training increases, employee morale and reduces absenteeism an employee turnover.
3. Improved skills and knowledge due to training lead to better career of the individual.
4. Training makes the employee more efficient to handle machines. Thus, less prone to accidents.
5. It helps in obtaining effective response to fast changing environment technological and economic.

There are various methods of training. These are broadly categories into two groups : On the job and off-the job methods.

On the job methods :

1. Apprenticeship programmed : Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill.
2. Coaching : In this method, the superior guides and instructs the trainee as a coach. The coach or counseler sets mutually agreed upon goals.
3. Internship training : It is a joint programmer of training in which educational institutions and business firms cooperate.
4. Job rotation : This kind of training involves shifting the trainee from one department to another or from one job to another.

Off the job methods :

1. Class room lectures/conferences : The lecture or conference approach is well adapted to conveying specific information rules, procedures or methods.
2. Films : They can provide information and explicitly demonstrate skills that are not easily represened by the other techniques.
3. Case study : Taken from actual experiences of organisations, cases represente attempts to describe, as accruetly as possible real problems that managers have faced.
4. Computer modelling : It simulates the work environment by programming a computer to imitate some of the realities of the job and allows learning to take place without the risk or high costs.
5. Vestibule training Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.
6. Programmed instruction : The method incorporates a prearranged and proposed acquisition of some specific skills or general knowledge.

Question 31.
Explain the long term financial sources in business.
Answer:
The financial requirements of a company may be classified as :

1. Long term finance
2. Medium term
3. Short term finance.

(i) Long term finance : Long term finance required for five years and above. Such finance is used for investment in fixed assets such as land, building, plant and machinery, furniture etc. Fixed assets are those assets which are required for permanent use and are not meant for sale. Long term finance is raised from shareholders, debenture holder, financial institutions and retained earnings.
Following are the main sources of long term finance :

1. Issue of shares : ‘Share’ is a share in the share capital of a company. According to section 2(46) of the companies act, “A share is the share in the capital of a company and includes stock except where a distinction between stock and share is expressed or implied.”
2. Issue of Debentures : A debenture is an instrument issued under the common seal of the company, acknowledging its debt to the holder under the terms and conditions specified in the instrument.
3. Ploughing back of profit or retained profit: Ploughing companies do not generally distribute the whole amount of profits as dividend.A certain proportion is transferred to reserves and utilised as additional capital. Thus, the financial needs of a company can be yet by retaining a part of the annual profits.
4. Loans from specialised financial institutions Loan when a bank mokes an advance in lump-sum against some security. The entire loan amount is paid to the borrower either in cash or by credit to his account, financial institutios have been set up of all India and regional levels for accelarating the growth of industries. These are mainly IFCI, ICICI, SECs, IDBI, SIDFCs, LIC, and UTI.

Question 32.
“Authority can be delegated ,but not responsibility.” Explain.
Answer:
“Authority can be delegated ,but not responsibility.” This statement is explaining about importance of delegation.Delegation or Authority is a process of sharing of tasks and authority between a manager and his subordinates.Delegation of authority is defined by Allen in the following words, “Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he,because of his unique organisational placement ,can perform effectively,and so that he can get others to help him with what remains.”
The following are the advantages of delegation or authority :

(i) Reduces the workload of managers : Delegation of authority permits a manager to share his workload with his subordinates. By passing on some of his own work to the subordinates,the manager is able to concentrate on more important aspects of his work-When delegation or authority takes place at all levels of the organisation it facilitates proper division of managerial work and its assignment to all managers in a systematic manner.

(ii) Basis of superior – subordinate relations : Delegation is the process by which superior – subordinate relations among managers are established.The flow of authority from the top management to lower levels is directed and regulated by the process of delegation.

(iii) Improves managerial effectiveness : In the delegation process managers pass routine work to the subordinates so they are free to concentrate on other important matters.The main job of managers is to get the work done effectively and by delegating the authorities and responsibilities.

(iv) Motivates subordinates : In the delegation when the manager is sharing his responsibilities and authority with the subordinates it motivates the subordinates as they develop the feeling of belonging and trust which is shown to them by their superiors.

(v) Facilitates the development of managers : Delegation is a source of development of managers.lt opens up opportunities for managers to acquire leadership and other skills and competency.They are required to exercise theirauthority,to handle situations and to solve managerial problems.

(vi) Facilitiesorganisational growth : In the process of delegation when the managers are passing their responsibility and authority to the subordinates they keep in mind the qualification and capability of all the subordinates.

Question 33
Mention the different external sources of recruitment.
Answer:
Anorganisation must recruit employeesfromoutside, i.e. through external sources.The important external sources of recruitment are as given follow :

(i) Factory gate : For recruitment of semi – skilled and unskilled employees a notice is put at the factory gate specifying the requirement of various types of workers.Job seekers wait outside the factory gate in the hope of finding some employment.

(ii) Waiting list: Very often organisations prepare and maintain a waiting list of employees from the applications of those candidates who had applied but could not be selected.

(iii) Employees recommendations : A large number of organisations ask their present employees to recommend the names of suitable candidates as and when a vacancy arises.The employees feel happy to recommend the names of their relatives and friends and ask them to apply for the jobs which suit them.

(iv) Labour union recommendations : It is a common practice in some organisations to ask the labour union(s) leaders to recommend the names of suitable candidates for the vacancies to be filled in the organisation.The leaders feel happy to suggest the names of suitable candidates.

(v) Private placement agencies : These are of recent origin now a days reputed private placement agencies such as Tata Consultancy Services are doing commendable jobs in this field.The agencies maintain data bank of specialists in various fields – skilled ,semi – skilled and even unskilled employees.

(vi) Employment Exchanges : Employment Exchanges have been set up by the government in metropolitan and other big other cities.People seeking employment get registered with the employment Exchange nearest to their place of residence.

(vii) Media advertisement: By far advertisement in leading newspaper,magazines and journals is a widely used method of external recruitment for skilled and specialisedjobs.lt is very effective due to the wide circulation.

(viii) Collages,institutions and campus: Reputed and multinational companies are recruiting employees through campus recruitment’ at reputed business schools,colleges and particularly at 1.1.Ms. Reputed institutions have 100% placements of their students.

Bihar Board 12th Accountancy Model Question Paper 1 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. In Section – A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
7. In Section – B there are Non-objective type questions. There are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Income and Expenditure Account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
Answer:
(c) Nominal A/c

Question 2.
Life membership fees received by a club is shown in:
(a) Income & Expenditure A/c
(b) Balance sheet
(c) Cash A/c
(d) None of these
Answer:
(b) Balance sheet

Question 3.
Legacy should be treated as:
(a) A Liability
(b) Revenue receipts
(c) An income
(d) None of these
Answer:
(b) Revenue receipts

Question 4.
In the absence of partnership deed, the partner will be allowed interest on the amount advance to the firm:
(a) 5%
(b) 6%
(c) 9%
(d) 8%
Answer:
(b) 6%

Question 5.
Which one is not the feature of partnership?
(a) Agreement
(b) Sharing of profit
(c) Limited Liability
(d) Two or more than two-person
Answer:
(c) Limited Liability

Question 6.
In the absence of partnership deed, interest on capital will be given to the partners at;
(a) 8%. p.a.
(b) 6% p.a.
(c) 9%
(d) None of these.
Answer:
(b) 6% p.a.

Question 7.
Interest on partners capital is calculated on:
(a) Opening capital
(b) Closing capital
(c) Average capital
(d) None of these
Answer:
(b) Closing capital

Question 8.
Interest payable on the capital of the partners is recorded in:
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Profit & Loss Appropriation A/c
(d) None of these
Answer:
(c) Profit & Loss Appropriation A/c

Question 9.
Change in the partnership agreement resulting in:
(a) Reconstitution
(b) Dissolution of firm
(c) Amalgamation of firm
(d) None of these
Answer:
(a) Reconstitution

Question 10.
Excess of credit side over the debit side in Revaluation Account is a:
(a) Profit
(b) Loss
(c) Receipt
(d) Expense
Answer:
(a) Profit

Question 11.
Revaluation A/c or Profit & Loss adjustment A/c is a:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
Answer:
(b) Real A/c

Question 12.
Generally, the interest on capital is considered as:
(a) An appropriation of profit
(b) An asset
(c) An expense
(d) None of these
Answer:
(a) An appropriation of profit

Question 13.
Goodwill is:
(a) Tangible Asset
(b) Intangible Asset
(c) Current Asset
(d) None of these
Answer:
(b) Intangible Asset

Question 14.
The excess of average profits over the normal profit is called:
(a) Super profit
(b) fixed profit
(c) Abnormal
(d) Normal profit
Answer:
(a) Super profit

Question 15.
The monetary value of the reputation of the business is called:
(a) Goodwill
(b) Super profit
(c) Surplus
(d) Normal profit
Answer:
(a) Goodwill

Question 16.
Profit or Loss on Revaluation is borne by:
(a) Old partners
(b) New partners
(c) All partners
(d) Only two partners.
Answer:
(a) Old partners

Question 17.
Which of the following asset is compulsorily revalued at the time of admission of a new partner:
(a) Stock
(b) Fixed Assets
(c) Investment
(d) Goodwill
Answer:
(d) Goodwill

Question 18.
Share of goodwill brought in cash by the new partner is called:
(a) Assets
(b) Profit
(c) Premium
(d) None of these.
Answer:
(c) Premium

Question 19.
A firm can be voluntarily dissolved by the partners:
(a) On the majority
(b) On 3/4 members decision
(c) On 1/2 members decision
(d) None of these.
Answer:
(a) On the majority

Question 20.
Insolvency of a partner will come under what type of dissolution of a firm?
(a) Dissolution by court
(b) Compulsory Dissolution
(c) On the happening of certain contingencies
(d) None of these.
Answer:
(b) Compulsory Dissolution

Question 21.
On the firm’s dissolution, which one of the following accounts should be prepared at the last?
(a) Realisation Account
(b) Partners capital Account
(c) Bank Account
(d) Partners Loan Account
Answer:
(a) Realisation Account

Question 22.
In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to:
(a) Realisation Account
(b) Partner’s capital A/c
(c) Sundry debtors Account
(d) None of the above.
Answer:
(b) Partner’s capital A/c

Question 23.
On dissolution, If a partner undertakes to make payment of a liability of the firm, the account to be debited is:
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Partner’s Capital A/c
(d) Bank Account
Answer:
(c) Partner’s Capital A/c

Question 24.
Which of the following is transferred to Realisation A/c:
(a) Balance of cash A/c
(b) Balance of P/L A/c
(c) Creditors
(d) Reserves
Answer:
(c) Creditors

Question 25.
On dissolution of the firm, Loss on realization account is debited to which account?
(a) Cash account
(b) Partner’s capital account
(c) Realisation account
(d) None of these
Answer:
(b) Partner’s capital account

Question 26.
Cash balance shown in the balance sheet is shown on the dissolution of the firm in:
(a) Realisation A/c
(b) Cash A/c
(c) Capital A/c
(d) None of these
Answer:
(a) Realisation A/c

Question 27.
On dissolution of a firm, Bank overdraft is transferred to:
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Partner’s Capital A/c
Answer:
(c) Realisation A/c

Question 28.
On dissolution, goodwill account is transferred to:
(a) Partner’s Capital A/c
(b) Credit side of cash A/c
(c) Debit side of Realisation A/c
(d) Credit side of Realisation A/c
Answer:
(a) Partner’s Capital A/c

Question 29.
On dissolution when a partner takes over an asset, is debited:
(a) Realisation A/c
(b) Partner’s capital account
(c) Cash account
(d) Asset account
Answer:
(b) Partner’s capital account

Question 30.
Unrecorded Liabilities when paid are shown in:
(a) Debit side of Realisation A/c
(b) Debit side of Bank A/c
(c) Credit side of Realisation A/c
(d) Credit side of Bank A/c
Answer:
(a) Debit side of Realisation A/c

Question 31.
Share Allotment Account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 32.
Which one of the following is the registered capital of the company:
(a) Paid-up capital
(b) Uncalled-up capital
(c) Authorized capital
(d) Issued capital
Answer:
(c) Authorized capital

Question 33.
Dividends are usually paid on:
(a) Authorised capital
(b) Issued capital
(c) Called up capital
(d) Paid-up capital
Answer:
(d) Paid-up capital

Question 34.
Which statement is issued before the issues of shares:
(a) Prospectus
(b) Article of Association
(c) Memorandum of Association
(d) All of these
Answer:
(a) Prospectus

Question 35.
A debenture is a:
(a) Loan certificate
(b) Cash certificate
(c) Credit certificate
(d) None of these
Answer:
(a) Loan certificate

Question 36.
Generally, debentures are:
(a) Secured
(b) Party secured
(c) Unsecured
(d) None of these
Answer:
(c) Unsecured

Question 37.
Rate of Interest on debenture is:
(a) 12% p.a
(b) 20% p.a
(c) Fixed rate
(d) 15% p.a
Answer:
(a) 12% p.a

Question 38.
Parents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these
Answer:
(c) Intangible Assets

Question 39.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of these
Answer:
(c) Intangible Assets

Question 40.
Preliminary expenses are shown in the Balance sheet under which head:
(a) Fixed Assets
(b) Reserve and Surplus
(c) Loan & Advances
(d) None of these
Answer:
(c) Loan & Advances

Question 41.
The financial statements of a business enterprise include:
(a) Balance-sheet
(b) P/L account
(c) Cash flow statement
(d) All of the above
Answer:
(d) All of the above

Question 42.
In which meeting of company directors report is presented:
(a) Director’s meeting
(b) Annual General meeting
(c) Manager’s meeting
(d) All of the above
Answer:
(b) Annual General meeting

Question 43.
Which of the following is the limitation of financial analysis:
(a) Window – dressing
(b) Basis of Valuation
(c) Lack of Accuracy
(d) All the above
Answer:
(a) Window – dressing

Question 44.
The term “Current Liabilities” does not include:
(a) Sundry Creditors
(b) Debentures
(c) Bills payable
(d) o/s expenses
Answer:
(b) Debentures

Question 45.
Liquid Ratio is also known as:
(a) Current Ratio
(b) Quick Ratio
(c) Capital Ratio
(d) None of these
Answer:

Question 46.
Debit-Equity Ratio is:
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio
Answer:
(c) Solvency Ratio

Question 47.
Which of the following is non-operating expense:
(a) Rent
(b) Selling expense
(c) Wages
(d) Loss on sale of machinery
Answer:

Question 48.
The gross profit ratio is the ratio of gross profit to:
(a) Net cash sale
(b) Net credit sale
(c) Closing stook
(d) Net total sale
Answer:
(d) Net total sale

Question 49.
Which activity comes under “Operating Activities”:
(a) Purchase of Land
(b) Issue of Debentures
(c) Issue of Equity share
(d) Cash Sales
Answer:
(d) Cash Sales

Question 50.
Which of the following is not a cash inflow:
(a) Sale of Fixed Assets
(b) Purchase of Fixed Assets
(c) Issue of debentures
(d) Sale of goods for cash
Answer:
(b) Purchase of Fixed Assets

Non-Objective Type Questions

Short Answer Type Questions

Question no. 1 to 25 are short answer type. Answer any 15 questions. Each question carries 2 marks. (15 × 2 = 30)

Question 1.
What is the Receipt & Payment Account?
Answer:
A Receipts and Payments Account is a summary of cash receipts and cash payments relating to a given period. According to William Pickles, “ Receipts and Payments Account is nothing more than a Summary of cash Book over a certain period, analysed and classified under suitable headings. It is the form of account most commonly adopted by the treasurers of societies, clubs, associations, etc. When preparing the result of the year’s working

Question 2.
State two objectives of Receipt & Payment A/c.
Answer:
Following are the two objectives of Receipts and Payments Accounts.

• Receipts and Payments account is prepared to show cash and bank receipts and payments during the period to derive the closing balance of cash and bank.
• It is prepared on the cash basis of accounting.

Question 3.
State any two contents of Partnership deed.
Answer:
Following are the two contents of a Partnership deed:

• The name and address of the firm and its main business.
• The amount of capital to be introduced by Parents.

Question 4.
List any two items which usually appear on the debit side of partners capital Account, when the capital is fixed.
Answer:
Following are the items which usually appear on the debit side of the partner’s capital account, when the capital is fixed:

• Drawings
• Interest on the drawing.

Question 5.
State the circumstances on which reconstitutions of partnership firm can take place?
Answer:
The circumstances on which reconstitutions of partnership firm can take place are as below:

• Change in the profit-sharing ratio among the existing partners.
• Admission of a new partner.
• Retirement of an existing partner.
• Death of a partner.
• The amalgamation of two (or more) partnership firms.

Question 6.
What is the difference between sacrifice ratio & gaining Ratio?
Answer:
Difference between sacrificing ratio and Gaining ratio

Question 7.
Why Revaluation A/c is prepared on the admission of a partner?
Answer:
Revaluation account is a nominal account prepared for the purpose of distributing and transferring the profit or loss arising out of increase or decrease in the book value of assets and/or liabilities of the partnership firm at the time of change in profit sharing ratio, admission of a partner, the retirement of a partner as well as at the time of death of a partner.

Question 8.
How would you calculate the amount payable to the retiring partner?
Answer:
Considering the following point, we can calculate the amount payable to the retiring partner.
(i) The entire amount can be paid in cash.
(i) If fund available:
Journal Entry:
Retiring partner’s capital A/c … Dr.
To Cash A/c
(ii) If the loan is taken from the bank:
(a) Bank or cash A/c … Dr.
To Bank loan A/c
(b) Retiring partner’s capital A/c … Dr
To Bank or Cash A/c
(ii) By transferring capital Balance into Retiring partner’s loan Account:
Journal Entry:
Retiring Partner’s Capital A/c … Dr.
To Retiring Partner’s Loan A/c
(iii) Payment partly in cash and partly by transferring to loan A/c.
Journal Entry:
Retiring Partner’s Capital A/c … Dr
To Cash A/c
To Retiring Partner’s Loan A/c
(iv) Payment of Retiring partner’s loan.in Instalments.
Journal Entry:
(a) Interest A/c … Dr.
To Retiting partner’s Loan A/c
(b) Retiring Partners’s Loan A/c … Dr
To Cash or Bank A/c
(c) Profit and Loss A/c … Dr
To Interest A/c

Question 9.
What are the methods of calculating the deceased partner’s share in the profit of the firm up to the date of death?
Answer:
Following are the method of calculating the deceased partner’s share in the profit of the firm up to the date of death.

• On the basis of time
• On the basis of turnover or sales.

Question 10.
State any two bases on which a court can pass an order for dissolution of the firm.
Answer:
Two bases on which a court can pass an order for dissolution of the firm are mention below.

• A partner becoming of unsound mind.
• On misconduct of a partner affecting business.

Question 11.
Give any two objectives of preparing Realisation A/C.
Answer:
Following are the two objects of preparing realisation Account.

• Realisation account is prepared for disposing of all the assets of the firm and making payment to all the liabilities and dissolution expenses.
• Realisation account is prepared to find out the profit or loss on realisation of assets and payment of liabilities.

Question 12.
What is meant by Government Company?
Answer:
A government company is a company registered under the Indian Companies Act in which not less than 51% of paid-up share capital is held by the Central Government or State government or partly by Central government partly by one or more State government.

Question 13.
What is meant by the issue of shares at a premium?
Answer:
A company issues its shares at a premium; when the price at which it sells the shares is higher than their par value. This is quite common since the par value is typically set a minimal value such as Rs. 10 per share. The amount of the premium is the difference between the par value and the selling price.

Question 14.
State two provisions of the companies Act, 2013 for the issue of shares at a discount.
Answer:
When shares are issued at a price less than their face value it is said they have been issued at discount.
According to section 53:

• Except as provided in section 54 of the Indian Companies Act, 2013, a company shall not issue shares at a discount.
• Any shares issued by a company at a discounted price shall be void.

Question 15.
State two purposes for which security premium amount can be used by a company.
Answer:
Following are the two purpose for which security premium amount can be used by a company.

• Issuing fully paid bonus shares to the members.
• Writing off the Preliminary expenses of the company.

Question 16.
How would you treat discount on issue of debentures?
Answer:
When debentures are issued at a discount the amount of discount is debited to Discount on issue of Debentures is a capital loss and is normally recorded at the time of allotment money due.
Discount or loss should be written off as early as possible but within the loan period.

Question 17.
Name out the ways of redemption of debentures.
Answer:
Methods or way of redemption of debentures are as follow:

• Lump-sum payment on Maturity.
• The draw of lots or Annual drawings payments in instalments.
• Purchase of own Debentures in the open market.
• Redemption by conversion in shares or Debentures.

Question 18.
What are the elements of financial statements?
Answer:
Elements of financial statements are as follow.

• Assets
• Liabilities
• Equity
• Income
• Expenses.

Question 19.
What are the limitations of Financial Statements?
Answer:
Limitations of financial statement are as follow:

• Based on historical data.
• Based on Traditions and conventions.
• Ignore Qualitatitave Aspect.
• Ignore price level changes.
• Scope of Manipulations.
• Influenced by Personal Judgements.
• Artificial view.

Question 20.
State two objectives of Financial Statement Analysis?
Answer:
Following are the two objectives of Financial Analysis:

• To determine the value of the business.
• To determine the value of goodwill.

Question 21.
State the two utility of Comparative financial statement.
Answer:
Following are the two utility of comparative financial statements.

• Easy comparison.
• Indicate the trend of progress.

Question 22.
What is Profitability Ratio?
Answer:
Profitability refers to the ability of a business to earn a profit. It shows the efficiency of the business. These ratios measures the profit earning capacity of the company. Profitability has a direct link with sales. This is why we calculate these ratios on the basis of sales.

Question 23.
Name the two importance of Ratio – Analysis.
Answer:
Importance of Ratio Analysis are as below:

• Accounting ratios make the figures simple and understandable.
• Accounting ratios facilitate comparative analysis of the performance.

Question 24.
Explain the uses of the cash flow statement.
Answer:
Following are the uses of the cash flow statement:

• Cash flow statement aims at high lights the cash generated from operating activities.
• Cash flow statement helps in planning the repayment of loan schedule and replacement of fixed assets etc.
• Cash is the centre of all financial decisions. It is used as the basis for the projection of future investing and financing plans of the enterprise.
• Cash flow statement helps in the efficient and effective management of cash.

Question 25.
What is meant by cash flow from operating activities?
Answer:
Cash flows from operating activities are the cash flows from the principal revenue-producing activities of the enterprise.

Long Answer Type Questions

Question No. 26 to 33 are long answer type. Answer any 4 questions. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
A Rotary Club has kept its accounts on a cash basis and figures for the last year are given below. Prepare Receipts & Payments Account for the year.
Answer:
Receipts and payments Account

Question 27.
How is income and Expenditure Account prepared from Receipts and Payments Account?
Answer:
Income and expenditure are prepared from receipts and payment account and additional information mention below. Step involved in the preparation of Income and expenditure account following is the steps to be taken care while preparing income and expenditure account from receipts and payment A/c.

• Step – 1: Include all items of revenue receipts and expenses, on the respective side of the account.
• Step – 2: Ensure that no items of capital incomes and expenses are included in this account.
• Steps – 3: Also, adjustment for amounts prepared and outstanding, with respect to each item will have to be made.
• Step – 4: Further, items included in receipts and payment account, depreciation, provisions, and profit or loss on the sale of assets will have to be included in this account.
• Steps – 5: Finally, after putting down all items of revenue and expenses. You will get a balance. The resulting balance will then reveal the surplus or deficit for the period.

Question 28.
A and B are equal partners in a firm. On 1st January 2018, their capital respectively is Rs. 13000 and Rs. 11000. They admit C a partner for 1/4 share of the firm. This new partner brought his capital on the basis of the combined capital of A & B Adjust the old partners capital account according to the new profit sharing ratio.
Answer:
The combined capital of A and B = Rs. 13,000 + 11,000 = 24,000
C’s share in profit = 1/4
Let the profit of the firm be 1, then
Combined share of A and B = \(1-\frac{1}{4}=\frac{5}{4}\)
Reciprocal of \(\frac{5}{4}=\frac{4}{5}\)
Therefore, the total capital of the firm = Rs. 24000 × \(\frac{5}{4}\) = 30,000
C’s share in total capital = 30,000 × \(\frac{1}{4}\) = 7500
C’s share in capital on the basis of combined capital of A and B = 24,000 × \(\frac{1}{4}\) = 6000

Question 29.
Describe the methods of payment of the amount due to a retiring partner?
Answer:
Following are the adjustment at the time of retirement of a partner. On the retirement of a partner, there is a change in the relations of the partners and reconstitution of the partnership firm. An existing partner leaves the firm and remaining partners continue in the firm under the fresh agreement. Following are the various matters that need adjustment at the time of retirement of a partner.

• Changing in profit – sharing Ratio.
• Accounting Treatment of Goodwill.
• Revaluation of Assets and Liabilities.
• Distribution of Accumulated profits (Reserve) and Losses.
• Joint Life (Insurance) Policy.
• Calculation of Total Amount Payable to Retiring Partner.
• Statement of the Total Amount Payable to Retiring Partner.
• Adjustment of capitals.

Question 30.
What Journal entries will you pass in case of dissolution of the partnership firm?
Answer:
Journal entries at the time of Dissolution of a firm are the following:

Question 31.
Pass the necessary journal entries for the following transactions on the dissolution of the firm of P and Q after the various Assets (other than cash) and outside liabilities have been transferred to Realisations A/C:

1. Bank loan Rs. 12,000 paid.
2. Stock worth Rs. 16,000 was taken over by partner Q.
3. Partner P paid a creditor Rs. 4,000
4. Assets not appearing in the books of account realized Rs. 1200.
5. Expenses of Realisation Rs. 2,000 paid by partner Q.

Answer:

Question 32.
A company earns a gross profit of 20 % on cost. Its credit sales are twice its cash sales. If the credit sales are Rs. 4,00,000, Calculate the gross profit of the company.
Answer:
Credit sales = 4000,000
Cash sales (1/2 of credit sales ) = 200,000
Total sales = 600,000
We know that 20% of cost = 16.67 % of sales
Gross profit = \(\frac{600,000 \times 16.67}{100}\) = 100,020

Question 33.
Compute the “cash from operating activities” by Indirect method from the following details.

Answer:
Calculation of cash flow from operation.

Bihar Board 12th Biology Model Question Paper 1 in English Medium

Time : 3 Hours 15 Min
Total Marks : 70

Instructions for the candidates:

1. Candidates are required to give answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 Minutes of extra time has been allotted for the candidates to read the questions carefully.
5. This question paper is divided into two sections: Section – A and Section – B
6. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with blue/black ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/ Blade/Nail on OMR Sheet otherwise result will be treated as invalid.
7. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 have four options provided out of which only one is correct. You have to mark your selected option on the OMR-Sheet. Each question carries 1 (one) mark. (1 × 35 = 35)

Question 1.
Scientific/Botanical name of Pear is
(a) Pyrus communis
(b) Pisum sativum
(c) Pyrus malus
(d) None of them
Answer:
(a) Pyrus communis

Question 2.
Reproduction by Budding occurs in which of the followings:
(a) Yeast
(b) Hydra
(c) Both A and B
(d) Amoeba
Answer:
(c) Both A and B

Question 3.
Vegetative propagation is carried out by means of Rhizome in
(a) Potato
(b) Ginger
(c) Turmeric
(d) B and C both
Answer:
(d) B and C both

Question 4.
Which among the following is an example of Bulb?
(a) Ginger
(b) Potato
(c) Onion
(d) Radish
Answer:
(c) Onion

Question 5.
Which type of Endosperm is found in Angiosperms?
(a) Haploid
(b) Diploid
(c) Triploid
(d) None of these
Answer:
(c) Triploid

Question 6.
In which of the followings Pollinia are found?
(a) Calotropis
(b) Pea
(c) Gram
(d) Grass
Answer:
(a) Calotropis

Question 7.
Which among the following is an example of Parthenocarpic fruit?
(a) Apple
(b) Pear
(c) Banana
(d) None of these
Answer:
(c) Banana

Question 8.
Mammary glands are modified
(a) Endocrine gland
(b) Lachrymal gland
(c) Sweat gland
(d) None of these
Answer:
(c) Sweat gland

Question 9.
Hoemochorial Placenta is found in which among the followings?
(a) Horse
(b) Human being
(c) Rabbit
(d) Dog
Answer:
(b) Human being

Question 10.
The test which is used for study of genetic disorders in a Foetus is called as
(a) Angiogram
(b) Laparoscopy
(c) Amniocentesis
(d) Clotting test
Answer:
(c) Amniocentesis

Question 11.
Cuscuta is
(a) Epiphytes
(b) Root Parasite
(c) Total stem parasite
(d) Both B and C
Answer:
(c) Total stem parasite

Question 12.
Which among the following is an example of Hydrophytes?
(a) Lotus
(b) Hydrilla
(c) Trapa
(d) All of these
Answer:
(d) All of these

Question 13.
Mutations can be induced by
(a) Gamma radiation
(b) Infra-red radiation
(c) Ethylene
(d) IAA
Answer:
(a) Gamma radiation

Question 14.
How many genes are responsible for ABO system of blood group in humans?
(a) one
(b) two
(c) three
(d) four
Answer:
(c) three

Question 15.
What is the distance between consecutive two nucleotides of B-DNA?
(a) 2.7 A
(b) 3.4 A
(c) 3.32 A
(d) 3.7A
Answer:
(b) 3.4 A

Question 16.
Which among the following is termination codon?
(a) AUG
(b) GUG
(c) UAA
(d) AAA.
Answer:
(c) UAA

Question 17.
The characteristic feature of DNA double helix is
(a) Complementary & anti-parallel
(b) Always circular
(c) Parallel
(d) All of these
Answer:
(a) Complementary & anti-parallel

Question 18.
Which among the following is vestigial organs in Man?
(a) Nictitating membrane
(b) Coccyx
(c) Both A and B
(d) Pelvic
Answer:
(c) Both A and B

Question 19.
The bird Archaeopteryx was found in which period?
(a) Triassic
(b) Jurassic
(c) Cretaceous
(d) None of these
Answer:
(a) Triassic

Question 20.
The study of fossils is called as
(a) Entomology
(b) Paleontology
(c) Analogy
(d) Homology
Answer:
(b) Paleontology

Question 21.
Which among the following sequence defines Ribonucleotide?
(a) Ribose sugar + Nitrogenous base
(b) Ribose sugar + Protein
(c) Ribose sugar + Phosphoric acid
(d) Ribonucleoside + Phosphate group
Answer:
(d) Ribonucleoside + Phosphate group

Question 22.
Name the organelle which helps in translation.
(a) Lysosome
(b) Ribosome
(c) Spliciosome
(d) Exone
Answer:
(b) Ribosome

Question 23.
Humoral immunity is related to which among the followings?
(a) A-cells
(b) B-cells
(c) T-cells
(d) K-cells
Answer:
(b) B-cells

Question 24.
Which among the following is Causative organism of Typhoid disease:
(a) Bacillus anthracis
(b) Plasmodium vivax
(c) Salmonella typhi
(d) None of these
Answer:
(c) Salmonella typhi

Question 25.
What is common to Earthworm, Mushroom, Dung beetle and Soil mites? They all are
(a) Herbivores
(b) Carnivores
(c) Omnivores
(d) Detritivores
Answer:
(d) Detritivores

Question 26.
Gir forest is famous for
(a) Giraffe
(b) Cheetah
(c) Deer
(d) Lion
Answer:
(b) Cheetah

Question 27.
What are the types of food chains in an Ecosystem?
(a) Grazing
(b) Detritus
(c) Both A and B
(d) None of these
Answer:
(c) Both A and B

Question 28.
Which among the following animals become extinct?
(a) White peacock
(b) Dodo
(c) Deer
(d) Tiger
Answer:
(b) Dodo

Question 29.
Which among the following is Xerophytic plant?
(a) Trapa
(b) Casuarina
(c) Opuntia
(d) Both b and c
Answer:
(c) Opuntia

Question 30.
An example of a natural gene cloning vector is-
(a) Circular plasmid
(b) Linear plasmid
(c) Ti-plasmid
(d) Virion
Answer:
(c) Ti-plasmid

Question 31.
Acid rain occurs due to
(a) CO and CO₂
(b) NO₂ and SO₂
(c) CO₂ and NO₂
(d) N₂ and NO₂
Answer:
(b) NO₂ and SO₂

Question 32.
Sharbati Sonora and Kalyan Sona are improved varieties of which among the followings?
(a) Rice
(b) Wheat
(c) Maize
(d) Pulses
Answer:
(b) Wheat

Question 33.
Which bacteria transform milk into curd?
(a) Clostridium
(b) Micrococcus
(c) Lactobacillus
(d) Streptococcus
Answer:
(c) Lactobacillus

Question 34.
Somatic embryogenesis can be done by
(a) Cell culture
(b) Tissue culture
(c) Protoplast culture
(d) Both B and C
Answer:
(b) Tissue culture

Question 35.
RNAi is a method used to control
(a) Ball worms
(b) Nematodes
(c) Bacteria
(d) Fungi
Answer:
(b) Nematodes

Non-Objective Type Questions

Short Answer Type Questions

In this section, there are 18 short answer type question (each carries 2 marks) out of which answers any ten (10) questions. (10 x 2 = 20)

Question 1.
What do you mean by Global Warming? Explain.
Answer:
If there is excess increase in concentration of greenhouse gases in the atmosphere, then it would retain more and more of the infra-red radiation resulting in an enhanced greenhouse effect. Consequently, there will be increase in the global mean temperature which is referred to as Global Warming. It will cause melting of polar ice cap and glaciers. It also causes rise in sea level.

Question 2.
Describe the types of Biodiversity.
Answer:
Following are the types of Biodiversity :

1. Genetic diversity.
2. Species diversity
3. Ecological diversity.

Question 3.
Write an account of four benefits of transgenic animals for human welfare.
Answer:
Following are the benefits of transgenic animals :

1. Transgenic animals are routinely used in the laboratory as models in biomedical research.
2. Transgenic cow produces insulin in milk.
3. Transgenic sheep produces more wool.
4. Transgenic animals can be specifically designed to allow the study of how genes are regulated and how they affect the normal functioning of the body.

Question 4.
What is Binary fission ? Give suitable examples. Show it with the help of diagram.
Answer:
Binary fission reproduction takes place in Amoeba. Amoeba withdraws its pseudopodia and the nucleus divides by mitosis. A constriction appears in the middle and the amoeba gets divided into two daughter amoeba.Binary fission takeks place under favourable conditions.

Question 5.
What are Initiation codons ? Name them.
Answer:
AUG is in itiation codon. AUG stands for methionine, polypeptide chain begins with methionine

Question 6.
What do you understand by Tissue Culture? Illustrate its any two advantages.
Answer:
Plant tissue culture is the maintenance and growth of plant cells, tissues and organs on a suitable culture medium in vitor (in a container e.g., test tube).
Advantages of tissue culture: (i) Tissue culture helps to produce more copies of same plant with desired characters.
(i) It produces some clonal variations.

Question 7.
Draw the sketches of a Zoospore and a Conidium.
Answer:

Question 8.
Mention advantages of self pollination.
Answer:
Advantages :

1. It provides greater chances for pollination of flower.
2. It is economical and pollen grains are not to be produced in enormous quantities to ensure pollination.
3. There is no necessity of flower to be showy and of bright colour to attract pollinators.
4. It preserves the desired and parental charracters of plants.

Question 9.
What are Communicable diseases in human beings ? Describe with suitable examples.
Answer:
Such diseases which arise directly or indirectly through infection of one to another person.
Ex: Tuberculosis, Cholera, Malaria, AIDS, etc.

Question 10.
Write about poultry farm management in brief.
Answer:
It deals with the management and rearing of flows (chickens) ducks, turkeys and pleasants for the production of eggs and meats.
Steps of proper management of poultry farm :

1. Selection of disease free and suitable breeds.
2. Provision of moderate climatic conditions during summer and winter.
3. Provision of nutritions used and water.
4. Providing comfortable, well ventilated, dry and well illuminated poultry house.
5. Regular check up of poultry birds for diagnosis and treatment.

Question 11.
Write expanded form of the following:
(A) G.M.O.
(B) S.T.D.
(C) A.M.P.
(D) V.N.T.R.
Answer:
(A) G.M.O: Genetically Modified Organism.
(B) S.T.D: Sexually Transmitted disease.
(C) A.M.P.: Adenosine Mono Phosphate.
(D) V.N.T.R.: Variable Number Tandem Repeat.

Question 12.
Distinguish between Missing link and Connecting link.
Answer:
Missing link: It is a hypothetical extinct creature halfway in the evolutionary line between modern human beings and their anthropoid progenitors. Connecting link : Connecting link is an organism having characteristics of two different group of organisms, Ex : Peripatus is a connecting link between Annelida and Arthropoda.

Question 13.
Differentiate between :
(A) Ovipary and Vivipary
(B) Oestrius cycle and Menstrual cycle.
Answer:
(A) Ovipary: These are egg laying organisms, Ex: Fish, Frog etc.
Vivipary : Here development of embryo inside the body of parent takes place, leading to live birth of young ones. Ex. Man, Cow , etc.
(B) Oestrius Cycle and Menstrual Cycle : The females of placental mammals exhibits cyclical changes in the activities of ovaries and accessory ducts as well as hormones during the reproductive phase. However in non – primate mammals like cows, sheep, rats, deers, tiger etc, such cyclical changes occurs during reproduction are called oestrius cycle whereas in primates, e.g. monkeys, apes, & humans it is called menstrual cycle.

Question 14.
Write the scientific name of causal organism of Malaria and Elephantiasis diseasse of human being.
Answer:
(i) Malaria : Plasmodium vivax.
(ii) Elephantiasis : Wuchereria bancrafti

Question 15.
What do you understand by noise pollution. Describe its various causes.
Answer:
Noise pollution is the propagation of noise with harmful impact on the activity of human life.
Sources : Washing Machine, Cooler, Vacuum Cleaner etc.

Question 16.
Mention any two applications of GelElectrophoresis in Biotechnology.
Answer:
Applications :
(i) DNA can be separated by Gel electrophoreny.
(ii) Electrophoeny is useful in both the creation and production of vaccines.

Question 17.
Match column A with B:
Answer:

Question 18.
Show diagrammatic representation of clover leaf model of t-RNA molecule and name the four arms.
Answer:

Long Answer Type Questions

There are 6 long answers type question (each carrying 05 marks) out of which answers any three questions. (5 x 3 = 15)

Question 19.
What do you understand by Bio-fertilizer? What are the benefits soil gets from them? Name any two such bio-fertilizers.
Answer:
Bio-fertilisers are organisms that enrich the nutrient quality of the soil. The main sources of bio-fertilisers are microbes (eg. Bacteria, Fungi and Cyano-bacteria). The nodules on the roots of legunminous plants formed by the symbiotic association of Rhizobium, fix atmospheric nitrogen into organic forms, which is used by the plants as nutrient. Other bacteria can fix atmospheric nitrogen while free-living in the soil (eg. Azospirillum and Azotobacter), thus enriching the nitrogen content of the soil.

Fungi are also known to form symbiotic associations with plants (mycohiza). The fungi symbiont in these association absorbs phosphorus from soil and passes it to the plants. Plants having such associations show other benefits also, such as resistance to root-borne pathogens, tolerance to salinity and drought and an overall increase in plant growth and development.

Cyano-bacteria are autotrophic microbes which can fix atmospheric nitrogen, eg. Anabaena, Nostoc, Oscillatoria, etc. In paddy fields, Cyano-batetiar serve as an important bio-fertiliser. Blue green algae also add organic matter to the soil and increases its fertility. Currently, in our country, a number of fertilisers are available commercially in the market and farmers use these regularly in their fields to replenish soil nutrients and to reduce dependence on chemical fertilisers.

Question 20.
Show food-chain in a fresh water pond and illustrate it with the help of diagram.
Answer:

(saprophytic bacteria and fungi)

Question 21.
What do you understand by Mutation? What are their main types and mention its significance in brief.
Answer:
Mutation is defined as change in gene which is heritable.
The abrupt changes may take place in chromosomes, then it is called chromosomal mutation.

Types of Mutation:

1. Somatic mutation: It occurs in somatic cells and it is non-heritable.
2. Germinal mutation: It is found in reproductive cells and is heritable.
3. Spontaneous mutation: Mutation occuring in nature is called spontaneous mutation.
4. Induced mutation: When mutation is produced by mutagenic chemicals or radiations.

Significance:
Role of Mutation in Evolution: Evolution is a slow and continuous process for evolution. The basic necessity is variation. The variation among plants and animals are brought about by mutation.

Question 22.
What do you mean by Cry-protein? It is obtained from which organism? Describe its various uses.
Answer:
Cry proteins are crystalline toxins which are encoded by cry genes. It is obtained by Bacillus touring – genesis bacteria. The bacterium contains these proteins in their inactive form. When the inactive toxin protein is ingested by the insect it gets activated by the alkaline pH of the gut.

Uses of Cry-protein :

1. It protects cotton plants from ball-worms.
2. Many transgenic crops are produced.

Question 23.
What do you mean by Foetal Membrane? Mention its types and explain it in brief.
Answer:
The Foetal membranes are membranes associated with the developing Foetus. The two chorio-amniotic membranes are the amnion and the Chorion which make the amniotic sac surrounds and protects the foetus. The other foetal membranes are the allantois and the secondary umbilical vesicle.

Types of Foetal Membrane :

1. Amnion: The Amnion is a transparent greyish membrane which lines the chorian. It comes to the foetal surface of the placenta and the umbilical cord.
2. Chorion: The chorion is a double-layered membrane formed by the trophoblast and the extraembryonic mesoderm which eventually give rise to foetal part of the placenta.

Question 24.
Write short notes on any two of the following :
(a) Fisheries
(b) Ribosome
(c) Infertility
(d) Red data book.
Answer:
(a) Fisheries: Fisheries is a kind of industry which is associated with fish and other aquatic animals (crab, prawn), and for thier production, processing and marketing management. The revolution in the field of increased production of fishes is called “Blue Revolution.’

(b) Ribosome: Ribosomes are found on the endoplasmic reticulum or scattered in the cytoplasm. These vary from 150-200 A° and are made of nucleo-protein. These are found as free granules or in groups. When these are found in granules, they are called poly-ribosome.

(c) Infertility: Inability to conceive or produce children even after two years of unprotected sexual co-habitation is called infertility.

(d) Red-data book: Red-data book is a catalogue of taxa that are facing the risk of extinction. Its main aim is to give information about the urgency and scale of conservation problem to the public and policymakers.

Bihar Board 12th Accountancy Model Question Paper 4 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. In Section – A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
7. In Section – B there are Non-objective type questions. There are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Life membership fees received by a club is shown in
(a) Income & Expenditure A/c
(b) Balance Sheet
(c) Profit & Loss A/c
(d) None of these
Answer:
(b) Balance Sheet

Question 2.
Receipts and- Payments Account is a
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(b) Real A/c

Question 3.
Payment of honorarium to the secretary is treated as
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Cash Expenses
(d) None of these
Answer:
(b) Revenue Expenditure

Question 4.
Outstanding subscription is a/an
(a) Income
(b) Asset
(c) Liability
(d) None of these
Answer:
(b) Asset

Question 5.
Which of the following is not an income?
(a) subscription
(b) Donation
(c) Sale of ticket
(d) Endowment fund
Answer:
(b) Donation

Question 6.
Receipts and Payments Account usually indicates.
(a) Surplus
(b) Capital fund
(c) Debit balance
(d) Credit balance
Answer:
(b) Capital fund

Question 7.
Income and Expenditure Account generally indicates
(a) Surplus/deficit
(b) Cash Balance
(c) Capital Fund
(d) Net Profit/Loss
Answer:
(a) Surplus/deficit

Question 8.
In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm
(a) @5%
(b) @6%
(c) @7%
(d) @8%
Answer:
(b) @6%

Question 9.
Which one is not the feature of partnership?
(a) Agreement
(b) Profit-sharing
(c) Limited Liability
(d) Two or more persons.
Answer:
(d) Two or more persons.

Question 10.
In the absence of partnership deed, interest on capital will be given to the partners at
(a) 8% p.a.
(b) 6% p.a.
(c) 9% p.a.
(d) None of these
Answer:
(d) None of these

Question 11.
The Current Account of the partners will be
(a) Debit Balance
(b) Credit Balance
(c) Both
(d) None of these
Answer:
(c) Both

Question 12.
Interest on partners capital is calculated on
(a) Capital in the beginning
(b) Capital at the end
(c) Average capital
(d) None of these
Answer:
(b) Capital at the end

Question 13.
Which of the following is an appropriation of profit?
(a) Interest on loan
(b) Interest on capital
(c) Salary
(d) Rent
Answer:
(b) Interest on capital

Question 14.
In the absence of any partnership agreement, the profits & losses of the firm are divided into
(a) capital ratio
(b) equal ratio
(c) any of these two ratios
(d) none of these
Answer:
(b) equal ratio

Question 15.
In an ordinary partnership, the maximum number of partners is
(a) 20
(b) 10
(c) 15
(d) 5
Answer:
(a) 20

Question 16.
In the absence of a partnership deed, partners are not entitled to receive
(a) Salaries
(b) Commission
(c) Interest on Capital
(d) All of these
Answer:
(d) All of these

Question 17.
The balance of Revaluation Account is transferred to old partners Capital A/c in there
(a) Old Profit or loss Sharing ratio
(b) New profit or loss sharing ratio
(c) Equal ratio
(d) none of these
Answer:
(a) Old Profit or loss Sharing ratio

Question 18.
Revaluation Account is a
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(c) Nominal Account

Question 19.
Sacrifice ratio is
(a) New ratio – Old ratio
(b) Old ratio – New ratio
(c) Gaining ratio – Old ratio
(d) Old ratio – Gaining ratio
Answer:
(a) New ratio – Old ratio

Question 20.
Goodwill is
(a) Tangible Asset
(b) Intangible Asset
(c) Current Asset
(d) None of these
Answer:
(b) Intangible Asset

Question 21.
The executors of a deceased partner will be paid interest on the amount due from the date of death of the partner at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(b) 6% p.a.

Question 22.
Share of goodwill brought by a new partner in cash is shared by old partners in
(a) Sacrifice ratio
(b) Old ratio
(c) New ratio
(d) All of these
Answer:
(c) New ratio

Question 23.
Balance Sheet prepared after new partnership agreement, assets and liabilities a recorded at
(a) Original value
(b) Revalued figure
(c) Realisable value
(d) Either of (a) or (b)
Answer:
(b) Revalued figure

Question 24.
Which of the following assets is compulsorily revalued at the time of admission of a new partner?
(a) Stock
(b) Fixed Assets
(c) Investment
(d) Goodwill
Answer:
(d) Goodwill

Question 25.
Share Allotment Account is
(a) Personal Account
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal Account

Question 26.
Equity shareholders are
(a) Customers
(b) Owners
(c) Creditors
(d) Debtors
Answer:
(b) Owners

Question 27.
The total amount of liabilities side includes
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Subscribed capital
Answer:
(c) Paid-up Capital

Question 28.
Shareholders get
(a) Interest
(b) Dividend
(c) Commission
(d) Profits
Answer:
(b) Dividend

Question 29.
Interest on calls in arrears is charged according to table ‘F’ at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(d) 8% p.a.

Question 30.
Revaluation A/c is prepared at the time of
(a) Admission
(b) Retirement
(c) Death
(d) All of these
Answer:
(d) All of these

Question 31.
Which one of the following is the registered capital of the company?
(a) Paid-up capital
(b) Uncalled up capital
(c) Authorised capital
(d) Issued capital
Answer:
(c) Authorised capital

Question 32.
Debenture is a
(a) Loan certificate
(b) Cash certificate
(c) Credit certificate
(d) None of these
Answer:
(a) Loan certificate

Question 33.
Debenture holders are the
(a) Customers
(b) Owners
(c) Creditors
(d) Debtors
Answer:
(c) Creditors

Question 34.
Rate of interest on debentures is at
(a) 12% p.a.
(b) 20% p.a.
(c) fixed rate
(d) 15% p.a.
Answer:
(c) fixed-rate

Question 35.
Debentures can be redeemed out of
(a) Profit
(b) Capital
(c) Provision
(d) All of these
Answer:
(d) All of these

Question 36.
The premium on redemption of debentures is a
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Suspense A/c
Answer:
(b) Real A/c

Question 37.
The premium on redemption of Debenture A/c is
(a) Asset
(b) Expense
(c) Liability
(d) Income
Answer:
(b) Expense

Question 38.
The Current Assets include
(a) Stock
(b) Debtor
(c) Cash
(d) All of these
Answer:
(d) All of these

Question 39.
The dividend is usually paid on
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up capital
(d) Called-up capital.
Answer:
(c) Paid-up capital

Question 40.
Interest on loans is
(a) Operating Expense
(b) Direct Expense
(c) Indirect Expense
(d) All of these
Answer:
(c) Indirect Expense

Question 41.
Interest on calls in arrears is charged according to ‘Table A’ at
(a) 5%p.a.
(b) 6% p.a.
(c) 8% p.a.
(d) 11% p.a.
Answer:
(a) 5%p.a.

Question 42.
Realisation Account is a
(a) Personal A/c
(b) Nominal A/c
(c) Real A/c
(d) None of these
Answer:
(c) Real A/c

Question 43.
Expenses on the dissolution of the firm are called
(a) Realisation expenses
(b) Legal expenses
(c) Loss Expenses
(d) None of these
Answer:
(a) Realisation expenses

Question 44.
X, Y and Z share profits in the ratio of 1/2 : 1/3 : 1/6. Z dies, New ratio of X and Y will be
(a) 3 : 2
(b) 2 : 3
(c) 2 : 1
(d) None of these
Answer:
(a) 3 : 2

Question 45.
The executors of a deceased partner will be a partner will be paid interest on the amount due from the date of death of the partner at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(b) 6% p.a.

Question 46.
A and B share profits and losses in the ratio of 3 : 1. C is admitted into a partnership for 14 shares. The sacrificing ratio of A and B is
(a) equal
(b) 3 : 1
(c) 2 : 1
(d) 3 : 2
Answer:
(b) 3 : 1

Question 47.
A, B and C are equal partners in the firm. B retires and the remaining partners decide to share profits of the new firm in the ratio of 5 : 4. Gaining ratio will be
(a) 2 : 1
(b) 1 : 2
(c) 4 : 5
(d) 5 : 4
Answer:
(a) 2 : 1

Question 48.
A, B and C are sharing profits in the ratio of 1/2 : 1/3 : 1/6. C retired. Gaining ratio will be
(a) 2 : 1
(b) 2 : 3
(c) 3 : 2
(d) 1 : 2
Answer:
(c) 3 : 2

Question 49.
The decrease in the value of fixed assets is termed as
(a) Depreciation
(b) loss
(c) profit
(d) expense
Answer:
(a) Depreciation

Question 50.
The excess of average profits over the normal profits are called
(a) Super profits
(b) fixed profits
(c) abnormal profits
(d) normal profits
Answer:
(a) Super profits

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 × 2 = 30)

Question 1.
Explain the reason for the valuation of goodwill.
Answer:
Steps for valuation of Goodwill are shown below.
Steps Involved under Average Profit method.
Step 1: Calculate Adjusted (past) Profits or maintainable profit for each of the relevant years (given) after making adjustments relating to abnormal gains, profits, abnormal expenses and losses, incomes from non-trade investments, Proprietor’s remuneration etc.
Step 2: Calculate total profit by adding each relevant year’s adjusted profits.
Step 3: Calculate average profits:
Formula: Average profits = \(\begin{array}{l}
\text { Total Profit } \\
\text { No. of Years }
\end{array}\)
Step 4: Calculate Goodwill as under:
Goodwill = Average profit × No. of years purchase.

Question 2.
X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. Y retires. X and Z decided to share profits and losses in future in the ratio of 5 : 4. Calculate gaining ratio.
Answer:

Question 3.
What are the objectives of a financial statement?
Answer:
Following are the objectives of financial statement: The basic objective of financial statements is to assist in decision making. But there many more other objective too.

• To serve as a media of information regarding profitability and financial health of the enterprise.
• To assist in investment decision making.
• To help in making planning.
• To help management in assessing the efficiency of the organisation.
• To provide financial information about changes in net resources arising out of business activities.
• To provide reliable information about economic resources and the obligation of business enterprise.
• To assist in estimating the earning potentials of the business.
• To disclose other information that is relevant to the needs of the users of the financial statements.

Question 4.
A firm’s current ratio is 2.5 : 1 Its liquid ratio is 1.5 : 1 If current liabilities are Rs. 15,000, calculate the amounts of current assets and stock.
Answer:
Calculation of current assets and stocks:

Question 5.
What is Ratio Analysis? Explain the importance of Analysis.
Answer:
Ratio Analysis: Ratio analysis means examination and interpretation of the numerical relationship of two numbers. In financial analysis, a ratio is used as an index or yardstick for evaluating the financial position and performance of a firm According to Myers, Ratio analysis is a study of the relationship among the various financial factors in business.
Importance of Accounting Ratios:

• Accounting ratios make the figures simple and understandable.
• Accounting ratios provide the basis for preparing budgets and also determining the future line of action.
• Accounting ratios facilitate comparative analysis of the performance.
• Accounting ratios help in making decisions from the information provided in the financial statements.
• Accounting Ratios indicate efficiency and the profitability of the business concern.
• The operational efficiency of the business can be ascertained by calculating the operating ratio.

Question 6.
Explain the importance of cash flow statement.
Answer:
Importance and uses of cash flow statement:

• Cash flow statement aims at highlighting the cash generated from operating activities.
• Cash flow statement helps in planning the repayment of the loan schedule and replacement of fixed assets.
• Cash is the centre of all financial decisions. It is used as the basis for the projection of future investment and financial plans of the enterprise.
• Cash flow statement helps in the efficient and effective management of cash.
• The management generally looks into the cash flow statement to understand the internally generated cash which is the best utilised for payment of dividends.
• Cash flow statement is useful as a tool of historical analysis.

Question 7.
Explain the types of cell references in Excel.
Answer:
Types of cell address in excel:

• Relative cell address: A Relative cell reference is one chat when copied from one position to another will adjust the formula cell address to suit the position it is in.
• Absolute cell Address: absolute and relative references are extremely important in Microsoft excel and they ensure that the formulas you are creating actually refer to the correct cells.
• Mixed cell Address: Essentially what this means is that one either the column or the row has the dollar symbol for example & C3.

Question 8.
Define DBMS.
Answer:
Database Management system (DBMS): A DBMS is a database program. Technically speaking it is a software system that asses a standard method of cataloguing, receiving, and running queries on data.

Question 9.
Explain the function of SQL command Create & Select.
Answer:

• Create: Creates a user-defined function in SQL Server and Azure SQL Database.
• Select: It means to select any file and then proceed further work in SQL Database.

Question 10.
Describe various uses of MS-Excel in accounting.
Answer:
Following are the various uses of Ms-Excel in Accounting:

• Select the current column
• Select the current row
• Resize the name box
• Activate Excel’s Ribbon
• View a macro within your workbook
• Subtraction, Summation, Dividing, multiplication
• Navigate the charts and other objects in a workbook.

Question 11.
Define types of SQL (DML & DOL.)
Answer:
Navigate to an existing name range:

1. DDL (Data Definition Language)
2. DML (Data Manipulation Language)
3. DQL (Data Query Language)
4. DCL (Data Control Language)
5. DAC (Data Administration Command)
6. TCC (Transaction Control Command)

Question 12.
Explain Database normalization
Answer:
Database normalisation is a process used to organize a database into tables and columns. The idea is that a table should be about a specific topic and that only those columns which support that topic are included. For example, a spreadsheet containing information about salespeople and customers serves several purposes.

Question 13.
Explain Entity, Attribute and Relation.
Answer:

• Entity: All entities have some attributes or properties that give them their identity.
• Attribute: An attribute is a property of a given entity, for example, Roll No. is a property of entity Student. An attribute instance is a particular property of an individual entity instance.
• Relation: The types of relationship between two entities are represented in E/R diagrams by a certain symbol. An entity may be associated with one none or occurrences of another entity.

Question 14.
Explain the logical function if () in Excel with example.
Answer:
IF: Tests a user-defined condition and returns one result if the condition is TRUE and another result if the condition is FALSE.
Ex. Formula = If (Logical – test, value – if – true, value – if – false.)

Question 15.
Describe in excel the Goal seeks under the what-if analysis tool.
Answer:
By using what: If analysis tools in Microsoft office excel, you can use several different sets of values in one or more formulas to explore the various results.
Goal seeks works with only one variable input value if you want to determine more than one input value, for example, the loan amount and the monthly payment amount for a loan you should instead use that solver add-in.

Question 16.
Describe the different processes of chart generation in excel.
Answer:
Process of chart generation in Excel:

• Step 1: Start Excel by default a blank worksheet opens.
• Step 2: Select the “Insert” tab.
• Step 3: Choose process in the list of chart types.
• Step 4: Add text to the first step in the process.
• Step 5: Customize the appearance of the flow chart.
• Step 6: Add an additional shape for each step in your business process.
• Step 7: Click the “Save” button on the quick access toolbar or press “ctreates” to save the completed business process flow chart before closing the worksheet.

Question 17.
Explain any three financial functions of excel.
Answer:
Three Financial Function of Excell:

• Present value (PV) equivalent to the value of the load or savings today, this function is used to estimate the loan size that could be paid off provided a periodic payment over a provided total number of payments and a provided periodic interest rate.
• Interest rate per period (RATE) equivalent to the interest rate generally monthly. This function is used to calculate the periodic interest rate required to pay off a provided present value with a provided periodic payment and a total number of payments.
• The number of payment periods (NPER) equivalent to the number of payment periods. This function is used to evaluate the total number of payment periods required to pay off a given present value with a provided payment and periodic interest rate.

Question 18.
Write the appropriate SQL command to create an invoice table with required columns.
Answer:

• For other objects, it is not so easy to come up with an equivalent database table structure.
• Consider an invoice each invoice object contains a reference to a customer object.
• You right consider simply entering all the customer data into the invoice tables.

Question 19.
Explain the function of Auto filter & sort in excel.
Answer:
Auto Filter: Auto filter is an easy way to turn the values in Excel column into specific filters based on the cell content.
Sort: When you enter data into your worksheet it is often unorganised making it difficult to examine. When analyzing the information in your spreadsheet, you may need to rearrange the data in different ways to answer different questions. Excel’s sorting features can help you rearrange your data so you can use it more efficiently.

Question 20.
Subscription received during the year 2013, Rs. 30,000. Subscription Rs. 20,000 was outstanding at the end of the previous year. Calculate the income from a subscription for the year 2013.
Answer:
Subscription for the year of 2013 – Rs. 30,000
Less: O/S at the end of the previous year – Rs. 20,000
Subscription for the year – Rs. 10,000

Question 21.
What is Profit and Loss Appropriation Account?
Answer:
Profit and Loss Appropriation AccountProfit and loss Appropriation account is an account which is prepared to carry out adjustments of partners rights and obligations such as salary payable to partners, commission, interest on capital interest on drawings and distribution of profit among partners. It is an extension of the profit and loss account. Net profit as shown by the profit and loss account is brought down to this account.

Question 22.
Ram and Rahim are partners. Ram invested Rs. 2,00,000 and Rahim Rs. 2,50,000. In the absence of partnership, deed distributes the profit Rs. 50,000 to each partner.
Answer:
In the absence of Partnership deed Profits are divided in equal ratio, therefore,
Share of Ram and Rahim – 25,000 each.

Question 23.
What is meant by reconstitution of a partnership firm?
Answer:
The partnership is created by an agreement, whenever, there is a change in the existing agreement, it amounts to the reconstitution of the Partnership firm.

Question 24.
What do you mean by normal profit and super profit?
Answer:
Normal profit means a reasonable return on capital employed, i.e. profit earned by a similar firm in the same industry, whereas super profit means the excess of actual profit over normal profit.

Question 25.
Rajratan and Mrityunjay who share profit in the ratio of 3 : 2 admit Shashi to give him \(\frac{1}{3}\) share. Calculate the new profit & loss sharing ratio.
Answer:
Profit sharing Ratio of Rajratan and Mritunjay = 3 : 2
Shashi’s share in firm = \(\frac{1}{3}\)
Let total pforit of firm = 1;
Remaining balance of profit = \(1-\frac{1}{3}=\frac{2}{3}\)
therefore, new ratio
Rajratan = \(\frac{2}{3} \times \frac{3}{5}=\frac{6}{15}\)
Mrityunjay = \(=\frac{2}{3} \times \frac{2}{5}=\frac{4}{15}\)
Shashi = \(\frac{1}{3} \times \frac{5}{5}=\frac{5}{15}\)
New Ratio of firm = 6 : 4 : 5

Long Answer Type Questions

Question no. 26 to 33 are Long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
Distinguish between Sacrifice Ratio and Gaining Ratio.
Answer:
Distinguish between Sacrifice Ratio and Gaining Ratio:

Question 27.
How will you deal with the realisation expenses of the firm of Rashmi and Bindu in the following cases:
(i) Realisation expenses Rs. 1,00,000
(ii) Realisation expenses of Rs. 30,000 and paid by Rashmi.
(iii) Rashmi bears Realisation expenses for which she will be paid Rs. 70,000. The actual expenses incurred by Rashmi Rs. 1,20,000.
Answer:

Journal Entries

Question 28.
Distinguish between preference share and equity share.
Answer:
Following are the differences between preference shares and equity shares.

Question 29.
Distinguish between shares and debentures.
Answer:
Following are the differences between share and debentures.

Question 30.
Urbashi Ltd. purchased an established business for Rs. 50,000 payable Rs. 15,000 in cash and the balance by the issue of 9% debentures of Rs. 100 at a discount of 10%. Show journal entries.
Answer:

Question 31.
On 31st March 2013 Puja Ltd redeemed Rs. 2,50,000. 10% debentures out of profits. Show the Journal entries.
Answer:

In the books of Pooja Ltd

Question 32.
Rudra Company Ltd. issued 35000 equity shares of Rs. 10 each at a premium of Rs. 2 payable as follows:
On application – Rs. 3
On allotment – Rs. 5 (including premium)
The issues were fully subscribed and all the money were duly received Record necessary Journal entries.
Answer:

Question 33.
Mona Ltd. issued 4,000, 8% debentures of Rs. 100 each at a premium of 10% payable Rs 20 on the application and the balance with a premium on the allotment. Expenses on the issue of debentures were Rs. 500. Pass necessary Journal entries.
Answer:

Bihar Board 12th Entrepreneurship Model Question Paper 3 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections: Section – A and Section – B.
5. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Which of the following is an element of sensing the opportunities?
(a) Innovation quality
(b) Ability to perceive
(c) Insight into the change
(d) None of these
Answer:
(a) Innovation quality

Question 2.
Economic policies determine, what?
(a) Direction of Business
(b) Volume of Business
(c) Nature of Business
(d) Direction and volume of Business
Answer:
(b) Volume of Business

Question 3.
Incentives are not concerned with
(a) Exemption from tax
(b) Lump-sum payment
(c) Rebate
(d) Provision of capital
Answer:
(d) Provision of capital

Question 4.
The one included in demand forecasting is
(a) Short term forecasting
(b) Long term forecasting
(c) Consumer forecasting
(d) Marketing forecasting
Answer:
(a) Short term forecasting

Question 5.
Is included in the nature of marketing
(a) Customer
(b) Production
(c) Product planning
(d) Selling
Answer:
(c) Product planning

Question 6.
Which of the factors affect market assessment?
(a) Demand
(b) Production cost
(c) Selling price
(d) Microenvironment
Answer:
(b) Production cost

Question 7.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) Demand
(c) Supply
(d) Marketing Demand
Answer:
(d) Marketing Demand

Question 8.
Entrepreneur fulfils responsibilities:
(a) Managerial
(b) Social
(c) Statutory
(d) None of these
Answer:
(a) Managerial

Question 9.
To be considered in the selection of services
(a) Competition
(b) Product planning
(c) Practicality
(d) Market Assessment
Answer:
(c) Practicality

Question 10.
Essential elements of a selection of an Enterprise
(a) Secrecy
(b) Business Activity
(c) Area of Operation
(d) All of these
Answer:
(d) All of these

Question 11.
Factors which determine the form of organisation
(a) Location
(b) Study
(c) Size
(d) Innovation
Answer:
(d) Innovation

Question 12.
Increases sales and profit in the market
(a) Marketing
(b) Promotion
(c) Innovation
(d) Location
Answer:
(b) Promotion

Question 13.
Execution of project establishment
(a) Entry into the market
(b) Trial production
(c) Building construction
(d) All of these
Answer:
(d) All of these

Question 14.
Included in the establishment of enterprise
(a) Raw material
(b) Report
(c) profit-loss
(d) Technology
Answer:
(a) Raw material

Question 15.
Of all managerial activities planning is the
(a) Beginning and end
(b) Beginning
(c) End
(d) None of these
Answer:
(b) Beginning

Question 16.
A good plan is
(a) Expensive
(b) Flexible
(c) Rigid
(d) Time-consuming
Answer:
(b) Flexible

Question 17.
According to “Terry” types of planning are
(a) 04
(b) 14
(c) 16
(d) 08
Answer:
(a) 04

Question 18.
Incentives are not concerned with
(a) rebate
(b) exemption from tax
(c) provision of seed capital
(d) lump-sum payment
Answer:
(d) lump-sum payment

Question 19.
Project is not concerned with
(a) Risk
(b) Creativity
(c) Innovation
(d) Vision
Answer:
(b) Creativity

Question 20.
The project report is a summary of
(a) Analysis
(b) Facts
(c) Information
(d) All of these
Answer:
(d) All of these

Question 21.
Lack of standardization of the equipment is due to
(a) Regulatory Barriers
(b) Government Barriers
(c) External Constraints
(d) Internal Barriers
Answer:
(d) Internal Barriers

Question 22.
Resources of production functions are
(a) Money, Import
(b) Import, Export
(c) Commerce, Export
(d) Money, Import, Export, Commerce
Answer:
(b) Import, Export

Question 23.
Which of the following is a type of Physical Resource?
(a) Marketing
(b) Finance
(c) Resources
(d) None of these
Answer:
(c) Resources

Question 24.
Regular working capital is the part of
(a) Permanent working capital
(b) Variable working capital
(c) Regular & seasonal working capital
(d) All of the above
Answer:
(a) Permanent working capital

Question 25.
Long terms loan bears
(a) Flexible rate of interest
(b) Zero rates of interest
(c) Fixed-rate of interest
(d) Rate of 1% interest
Answer:
(c) Fixed-rate of interest

Question 26.
Included in the utility of BEP
(a) Profit improvement
(b) Risk valuation
(c) Diagnostic tool
(d) All of these
Answer:
(d) All of these

Question 27.
India Investment fund was established by
(a) IFCI
(b) State Bank
(c) Grindlay Bank
(d) Can Bank
Answer:
(b) State Bank

Question 28.
Non-Bank sources are
(a) Open Accounts
(b) Trade loans
(c) Public Deposits
(d) All of these
Answer:
(b) Trade loans

Question 29.
A personal account is related to
(a) all types of assets
(b) all types of income
(c) person, company and firm
(d) none of these
Answer:
(c) person, company and firm

Question 30.
Accounting system is
(a) single-entry system
(b) double entry system
(c) cost system
(d) both (a) and (b)
Answer:
(b) double entry system

Question 31.
Of all managerial activities planning is the
(a) beginning
(b) end
(c) beginning and end both
(d) none of these
Answer:
(a) beginning

Question 32.
Telephone expenses are
(a) fixed
(b) variable
(c) semivariable
(d) none of these
Answer:
(c) semivariable

Question 33.
Subsidy is
(a) discount
(b) concession
(c) repayment
(d) none of these
Answer:
(b) concession

Question 34.
Element affecting growth rate is
(a) competition
(b) change in technology
(c) creativity
(d) all of these
Answer:
(d) all of these

Question 35.
Long-term loan bears
(a) a fixed rate of interest
(b) zero rates of interest
(c) flexible rate of interest
(c) none of these
Answer:
(a) a fixed rate of interest

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
Is management a profession?
Answer:
Management’s a well-defined body of knowledge there is an organization made to regulate whatever managers do. There is also a code of conduct for managers. But management’s not considered a profession because it needs a minimum number of qualifications, it’s essential for its practitioners to register themselves with a professional body and there’s no universally accepted code of conduct.

Question 2.
What does the opportunity cost?
Answer:
The opportunity cost of anything is the next best alternative that could be produced instead of the same factors by an equivalent group of factor costing the same amount of money.

Question 3.
What is short-term forecasting?
Answer:
Short-term forecasting refers to that forecasting which made for a short-time generally, short-term forecasting is made for the period of six months to one year.

Question 4.
What do you understand by expansion project?
Answer:
Under the expansion of project consisting the work, such as to the production of the new product to set up of new production unit to increase in capacity to produce goods and evolution of new markets.

Question 5.
How will you determine net working capital?
Answer:
Determination of networking capital = Net Working Capital = Current Assets – Current Liabilities
where,
Current Assets = Sundry debtors stock Cash, B/R prepaid expenses, etc.
Current Liabilities = Sundry Creditors Bill payable(B/P) outstanding etc.

Question 6.
What is Fund flow?
Answer:
A fund flow statement is a statement prepared to indicate the increase in the cash resources and the utilisation of such resources of business during the accounting period.
Unearning of fund flow: The term fund flow of funds means changes in working capital
Funds: Current Assets – Current liability

Question 7.
What is expressed by the solvency ratio?
Answer:
Solvency ratio: Solvency means the ability of a firm to pay its liabilities on the due date.
In a broader sense, the analysis of solvency can be divided into two groups:

• Short-term solvency
• Long-term solvency

Question 8.
State any two features of the modern concept of marketing.
Answer:
Following are two features of modern marketing:

• The modern concept of marketing lays maximum stress on consumers satisfaction
• In the modern concept of marketing goods and services are produced keeping on view the desires and requirements of the consumer or customers.

Question 9.
What are the elements of the project cycle?
Answer:
Followings are elements of the project cycle:

• Project formulation stage
• Project appraisal
• Selection of project
• Project implementation,
• Project commencing.

Question 10.
Write anyone cause of difference between fixed and working capital.
Answer:
Following are the causes of differences between fixed capital and working capital:

• Meanings
• Period
• Nature
• Sources
• Necessity.

Question 11.
What is the importance of venture capital?
Answer:
The amount of capital should be adequately balanced otherwise increase of over or under capitalisation, both the condition are total to a venture capital hence it must be available in a balanced proportion.

Question 12.
State any two factors which affect physical resources.
Answer:
Followings are the two factors which are affecting the physical resources:

• Location of land, size and its cost
• The conditions for installing machinery and its repairs etc.
• Effect on the environment.

Question 13.
Write three elements of the marketing mix.
Answer:
Following are the three elements of the marketing mix:

• Product mix
• Price mix
• Promotion mix.

Question 14.
Define Break-even analysis.
Answer:
“The break-even point is that point of sales volume where total revenues and total expenses are equal, it is also said as the point of zero profit or zero loss.”

Question 15.
Define venture capital.
Answer:
“The primary stage of finance which is related to the new and young organisation who wants to the regular development of their organisation given.

Question 16.
Is management considered a profession?
Answer:
Management fulfils some of the major characteristics of the profession (specialised knowledge, technical competency, training and experience and formal arrangement for enhancement of these. Priority to the feeling of devotion and service.) however some of the other characteristics (such as the formation of a professional union or body code of conduct etc.) are as yet not forcibly developed. Development of management as a profession in India even today is in the infantile stage and is making very slow progress.

Question 17.
What is product design?
Answer:
To making product design is a primary work of any enterprises because of the image and capacity of getting a profit of any enterprises are mostly depend on product design.

Question 18.
What is the object of branding?
Answer:
There are the following objects of Brand:

• The brand is a broad term which is used to identify a product
• Proud in a concrete or an abstract from establishes the identity of the product of a particular organisation that distinction is from that of other competitions
• Act the means of identity to a brand are included in the brand.
• The brand is a catalyst in the popularity and sales promotion of the product.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
Describe the nature of planning.
Answer:
Characteristics of Planning: Planning should have the following characteristic
(i) Objective-Based: A good planning is made keeping in view the objectives of the organisation. Whatever kind of plan may be and whichever department it may belong to it always makes scope for the various activities to be directed toward the achievement of goals.

(ii) Simple & Flexible: Planning should have the qualities of simplicity and flexibility. It should be simple in the sense that the person who implements it understand It. He should not feel the necessity of coming to planners again and again for seeking classification. Planning should be flexible as well.

(iii) Co-ordination: It should not be a lopsided plan proper co-ordination should be maintained within the cane accordingly without for its storage, It means it is lacking co-ordination.

(iv) Leading to efficiency and Economy: A properly drawn-out planning should lead to improving efficiency. It should suggest the right kinds of machines to be operated by workmen. It should also indicate the quality of raw materials to be used by the workmen. If the proper machine and proper raw material have been provided to the right kind of man the efficiency is bound to increase.

(v) Comprehensive: Planning should be comprehensive. It should deal with all aspects of the organisation. A list of all the activities of the organisation should be made. Even the smallest activity should not be an escape from this list.

(vi) Indicating Quantum: The overall targets are always given in the objectives. To achieve the prescribed target, each person in the organisation has to make his contribution. Good planning not only lays down the target of the expected outcome of each department but also of each sub-department.

Question 20.
Describe the factors affecting working capital.
Answer:
Factors affecting the working capital: There are the following factors affecting the working capital as:
(i) Nature and size of Business: The working capital depends on the nature of the business to a great extent. If a business is engaged in the production process more working capital will be required on other hand business firms engaged in trade activities will ‘require less working’ capital.

(ii) Business Cycles: The need for working capital keeps on increasing or decreasing according to business cycle. During Boom periods the businessman try to keep the maximum possible stock of goods in order to escape from the price increase.

(iii) Term of Buying & Selling: If businessman buy the necessary material for cash he requires more working capital. If the business unit has the policy of credit sales, more working capital will be required.

(iv) Duration of Production: The amount of working capital also depends upon the time taken in the manufacturing of a product. If the time required for the manufacture of the product is more, more working capital is needed to be.

(v) Volume & Procurement of Raw Material: If the amount to be spent on raw material is more in total investment more working capital will be required.

(vi) Manual Vs Automation: If a business unit uses automatic machines for production less working capital will be required. If the production is labour oriented like the workers engaged in tea, coffee, rubber etc. More working capital will be required.

(vii) Form of Taxation: Government policy of taxation also influences the need for working capital more capital will be required if all taxes are to be paid in advance, otherwise the need will be less.

(viii) Seasonal goods: If business units are engaged in such goods in which seasonal conditions play an important role need for working capital will be felt according to seasonal requirements.

(ix) The intensity of competition: If the market competition is intense, more amount of working capital is required as a competitive firm has to keep huge quantities of a long-range of products.

(x) Business growth: If a business is expanding it requires more money for raw materials wages etc.

Question 21.
Explain the nature of Management.
Answer:
Nature of Management: There is much important nature of Management as follows:
(i) Management is an art as well as science: Management can be treated as an art as well as a science because it has both qualities. It has similar qualities to science as well as arts.

(ii) Management is a process: It is a process because a large number of events are done under a management system for the achievement of certain goals or objectives. Such as planning, organising, staffing directing and controlling etc.

(iii) Management is a universal process: It is an important feature of management. It is called a universal process because it has gained a wide area of application. In fact, the principle of management can apply each and every form of the organisation either it may be business organisation, social or political organisation.

(iv) Management is a social process: Management can consider as a social process because it is concerned with human and their relationship.

(v) Management is a goal-oriented Approach: Management refers to a goal-oriented approach because it is directly related to the goals or objectives of the organisation. It provides a certain platform to the organisation to perform its various activities in the best way.

(vi) Management is a continuous process: It can be described as a continuous process because it is not an event which is concerned with the point of time. It is a never-ending process. It needed at every walk of life of an organisation.

(vii) Management is a creative function: It is a creative function because it creates so many things for all-around the development of people. It contributes to new investment incomes and new business etc in the nation.

Question 22.
Define planning. What are its features?
Answer:
Planning refers to opening the best alternatives after careful consideration. By imaging in the womb of future of option of the right advice and a follow up is termed as management or business planning. In other words, tomorrow’s job is to be determined right now or today is planning.

Definition of Planning: According to knootz and O’Donnell, “Planning is a judicious process which opens the door to various activities in which the decisions on objectives facts and pre-conceived estimates are to be taken.
According to W. H. Numan, “Generally to determine before what is to be done is planning. From this point of view, planning is a manifestation of vast human conduct.”
Characteristics or value of planning:

• Definite object and goal: Planning aims at achievement the certain objectives and every entrepreneur keeps such objectives in mind and plans accordingly.
• Forecasting: The second important phase of planning is to look towards the future with overuse of anticipation. According to Fell, “Planning is a synthesis of the forecasts be they be long term or short term, general or particulars forecasts.”
• Utility: Unity is also an essential feature of planning. At one time only one planning can be executed as any dual planing at a time can lead to chaos and uncertainty.
• Selection of the best among alternative courses of action: It refers to the option of the best alternatives available with the entrepreneur who has several options, policies and methods for managing the affairs.
• Planning is a continuous and flexible process: Future remains unpredictable. Nobody can assert with certainty what will happen tomorrow since planning is also recalled to future.
• Primary function: Planning, of course, is a primary function. In any commercial venture, planning is placed on the highest pedestal and the rest of the job are scored a secondary primary.
• Intellectual and mental process.

Question 23.
Explain the marketing concept and its objectives.
Answer:
The study of these five constituents is essential for the emergence of an enterprise:

• Labour or men: In all the resources of production, the ingredient of labour is the most mobilising element that stimulates all other factors and turns even the most useless thing into a useful one.
• Raw material: If the enterprise is production oriented a prior arrangement should be emphasised with regard to availability,type,cost/price and regular supply of the raw materials.
• Machine: Whatever be the scale of the enterprise whether big or small, machines are required in either case.
• Money: Money/capital is the lifeblood of an enterprise without which the establishment is an inconceivable presumption. The capital in the long and short term and its amount and the capital resources are a pre-emptive requirement.
• Market: A prior estimate is to be formed in terms of market consumption before the establishment of the enterprise.
• Place: It is also an important aspect and be decided where the enterprise should be set up.

Question 24.
Name the various elements included in total cost.
Answer:
Marketing is used almost by everybody as per his status ability need and environment as a normal word. All, therefore, mentioned ideas are the various aspects of marketing.
According to Pyle, “Marketing comprises both buying and selling activities.”

According to Clark and Clark, “Marketing consists of those efforts which affect transfers in the ownership of goods and services and provide for their physical distribution.”
There are the following functions of marketing manager:

• Buying: Buying is the first step in the marketing function. In a manufacturing unit, the raw material and int business unit, the finished goods is purchased.
• Selling: Selling is the most significant function of marketing. Selling refers to the transfer of merchandise or services from the owner to the customer.
• Pricing: The third important task is to determine the price of the products which necessitates a wider contemplation. According to the principle of Economics, the price of a product is linked to the demand and supply of a product.
• Physical distribution: This is the last function of marketing but not the least. Physical distribution implies the delivery of the product at an appropriate time, at the right place, in the right quantity and in right hands.

Bihar Board 12th Entrepreneurship Model Question Paper 2 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections: Section – A and Section – B.
5. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Is it necessary to give due consideration on internal resources before initiating a particular decision?
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for External Resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 2.
Which of the following is a factor affecting the identification of business opportunities?
(a) The volume of Internal demand
(b) Created opportunity
(c) Existing opportunity in the Environment
(d) None of the above
Answer:
(a) The volume of Internal demand

Question 3.
Learning processes involves.
(a) Drive
(b) Cue
(c) Response
(d) Drive, cue, and response
Answer:
(d) Drive, cue, and response

Question 4.
Subsidy is:
(a) Concession
(b) Discount
(c) Repayment
(d) None of these
Answer:
(c) Repayment

Question 5.
The business regulatory framework is concerned with what.
(a) Direction of Business
(b) Volume of business
(c) Regulation
(d) None of the above
Answer:
(c) Regulation

Question 6.
Do economic policies determine?
(a) Direction of Business
(b) Volume of Business
(c) Direction & Volume of Business
(d) None of these
Answer:
(c) Direction & Volume of Business

Question 7.
Short-term forecast involves a period of how many months?
(a) Twelve months
(b) Twenty four months
(c) Eighteen months
(d) Thirty-six months
Answer:
(a) Twelve months

Question 8.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) market demand
(c) demand and supply
(d) all of the above
Answer:
(b) market demand

Question 9.
Which of the following factors is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) all of the above
Answer:
(b) Cost of production

Question 10.
Out of the following, what is essential: to study in the feasibility study?
(a) Cost
(b) Prince
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Market demand is known as
(a) Demand forecasting
(b) Real demand
(c) Supply
(d) None of those
Answer:
(a) Demand forecasting

Question 12.
What creates imperfection in the market which ultimately increases the volumes of sales and profit?
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(a) Innovation

Question 13.
How will you formulate a general plan of Business?
(a) By production planning
(b) By cost planning
(c) By financial planning
(d) By doing all the above
Answer:
(d) By doing all the above

Question 14.
Which of the following is a problem connected with Business?
(a) Profit
(b) Money
(c) Sales
(d) Risk management
Answer:
(d) Risk management

Question 15.
On which out of the following the formulating of the general plan of a business depends.
(a) Project report
(b) Plant & production planning
(c) Marketing planning
(d) Financial planning
Answer:
(d) Financial planning

Question 16.
Lack of standardisation of the equipment is due to
(a) Internal constraints
(b) External constraints
(c) Government Barriers
(d) Regulatory Barriers
Answer:
(b) External constraints

Question 17.
The project cycle is not concerned with the following
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilisation stage
Answer:
(d) Stabilisation stage

Question 18.
Modernisation improves.
(a) Products
(b) Production
(c) Processes
(d) Capacity
Answer:
(d) Capacity

Question 19.
The gestation period is concerned with.
(a) Idea creation period
(b) Incubation period
(c) Implementation period
(d) Commercialisation period
Answer:
(c) Implementation period

Question 20.
What is required for fixed capital and working capital of any enterprise?
(a) Finance
(b) Marketing
(c) Planning
(d) None of the above
Answer:
(a) Finance

Question 21.
The term “fund” as used in fund flow analysis means
(a) Cash only
(b) Current Assets
(c) Current liabilities
(d) Excess of current Assets over current liabilities
Answer:
(d) Excess of current Assets over current liabilities

Question 22.
What affects the purchase of plant will have working capital?
(a) Decrease
(b) Increase
(c) No effect
(d) None of the above
Answer:
(a) Decrease

Question 23.
B.E.P. = ________
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)
(b) \(\frac { FixedCost }{ Contribution } \times 100\)
(c) \(\frac { \frac { P }{ V } ratio }{ FixedCost }\)
(d) None of these
Answer:
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)

Question 24.
P/V ratio = ________
(a) \(\frac { Contribution }{ Sales } \times 100\)
(b) \(\frac { Sales }{ Contribution } \times 100\)
(c) \(\frac { Contribution }{ Sales }\)
(d) None of these
Answer:
(a) \(\frac { Contribution }{ Sales } \times 100\)

Question 25.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 26.
Technological Development and Infrastructure Corporation of India was established in the year
(a) 1975
(b) 1986
(c) 1988
(d) 1990
Answer:
(c) 1988

Question 27.
What is management?
(a) Science
(b) Art
(c) Art and Science both
(d) None of these
Answer:
(c) Art and Science both

Question 28.
The foremost need for development in a country is of
(a) Physical Resources
(b) Economic Resources
(c) Efficient management
(d) None of these
Answer:
(b) Economic Resources

Question 29.
The present production system in fact is
(a) Direct production
(b) Indirect production
(c) Primary
(d) Secondary
Answer:
(b) Indirect production

Question 30.
Out of the following which is the method of quality control?
(a) Inspection method
(b) The statistical quality central method
(c) Both “A” and “B” above
(d) None of these
Answer:
(c) Both “A” and “B” above

Question 31.
Out of the following which is the method of production?
(a) The direct method of production
(b) The indirect method of production
(c) Both “A” and “B” above
(d) None of the above
Answer:
(c) Both “A” and “B” above

Question 32.
Marketing Expenditure is a burden
(a) On Industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 33.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All of these
Answer:
(d) All of these

Question 34.
The maximum wide scope is of
(a) Brand
(b) Labelling
(c) Packaging
(d) Trademark
Answer:
(a) Brand

Question 35.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
What is the relationship between opportunity and entrepreneur?
Answer:
The most important exception is the literature in management and organization theory on opportunity discovery or opportunity identification, or what Shane (2003) calls the “individual-opportunity nexus.” Opportunity identification involves not only technical skills like financial analysis and market research, but also less tangible forms of creativity, team building, problem-solving, and leadership. Entrepreneurship is an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, process, and raw materials through organizing efforts.

Question 2.
Give any three objectives of environment scanning.
Answer:
The following is the objective of Environmental scanning:

• Identification of strength
• Identification of opportunities
• Identification of weakness
• Identification of threat.

Question 3.
What is the feasibility study?
Answer:
A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling-factors.

Question 4.
Explain any two steps in the Execution of setting up an enterprise.
Answer:
An entrepreneur has to take the following steps in order to set up an enterprise.

• Selection of line of business: The entrepreneur has to decide the type of business in terms of manufacturing trading or service, then he has to select the types of goods and services to be will produce and distribute.
• Size of the Unit: Decision regarding the size of the unit of very important. The optimum size is one at which the average cost per unit is minimum.

Question 5.
Mention any three features of planning.
Answer:
Three features of planning are the following:

• Planning is a primary function of management.
• Planning contributes to the objective.
• Planning is forward-looking.

Question 6.
What are the objectives of project appraisal?
Answer:
Following are the objective of Project Appraisal:

• To extract relevant information for determining the success or failure of a project.
• To apply standard yardsticks for determining the rate of success or failure of a project.
• To determine the expected costs and benefits of the projects.
• To arrive at specific conclusions regarding the project.

Question 7.
What is fixed capital?
Answer:
Fixed capital is also known as fixed assets which refers to that part of the capital which is invested in fixed assets viz., land, building, machinery, furniture and equipment, etc. The objective of purchasing then is to earn income from them on a long-term basis. These assets remain involved for a long time, thus, called fixed assets.

Question 8.
Define the ratio.
Answer:
Ratios are useful tools that help companies and investors analyze and compare relationships between different pieces of financial information across an individual company’s history, an industry, or an entire business sector. ‘

Question 9.
What is the profit-volume ratio?
Answer:
The profit volume (PV) Ratio is the ratio of contribution over sales. It measures the profitability of the firm and is one of the important ratios for computing profitability.

Question 10.
What are the sources to mobilise financial resources?
Answer:
Following are the sources of stabilising financial resources:

• Loan from Banks
• Bank overdraft
• Cash credit
• Short term Loan
• Commercial paper/Bill
• Discounting of Bills Receivables
• Trade credit, etc.

Question 11.
State the characteristics of fixed capital?
Answer:
Following are the characteristics of fixed capital:

• Fixed capital is capital invested in fixed Assets
• Fixed capital is required for promoting business and its ancillary activities
• Fixed capital is used to acquire fixed assets These assets have low Liquidity because they are not easily saleable
• Fixed capital has a long-lasting existence
• Primary sources of fixed capital are shares. Debentures and long-term loans
• Fixed capital is used to meet the long-term need of the business some of which like amalgamation, merger
• etc.
• Fixed capital is a source of wealth
• Fixed capital improves financial analysis
• It provides long-term business stability.

Question 12.
What is the importance of finance in business?
Answer:
The goal of any finance function is to achieve three benefits: Business Support service, lowest costs and effective control of the environment, money is the lifeblood of a business and finance is the nerve centre. Finance is required to promote or create a business gain assets, develop products, run market surveys advertise. The conventional view of finance focuses or being reactive, efficient, quantitative and risk-averse. Now innovative views focus on being vision-oriented, opportunity and growth-focused, intuitive and risk-taking.

Question 13.
What is the production design? Discuss its phases.
Answer:
Product design process: The set of strategic and tactical activities, from idea generation to commercialization, used to create product design, in a systematic approach, product designers conceptualize and evaluate ideas, turning them into tangible inventions and products. The product designer’s role is to combine art, science, and technology to create new products that people can use. Their evolving role has been facilitated by digital tools that now allow designers to communicate visualize, analyse and actually produce tangible ideas in a way that would have taken greater manpower in the part.
Generally, the following points will be considered while preparing product design:

• Standardisation
• Reliability
• Reproducibility
• Product simplification
• Product price
• Maintainability
• Sustainability
• Servicing
• Consumer Quality

Question 14.
Give any three objectives of the project report.
Answer:
Following are the three objectives of project Report.

• To evaluation of investment opportunity.
• It is necessary to present a report for taking financial help.
• The project report is a systematical point of view for making a decision about investment.

Question 15.
What do you mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payment. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discount.

Question 16.
What is the marketing mix?
Answer:
Marketing mix implies a combination of all marking elements or ingredients so that the objective of the enterprise may be realised. The marketing mix is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces will best achieve the objectives of an enterprise at a given time.

Question 17.
Define cost.
Answer:
I.C.M.A London has defined the term ‘cost’ as a noun as well as a verb. As a noun, it means “the amount of expenditure (actual or nominal) incurred on or attributable to a specified thing or activity.” As a verb, it means to ascertain the cost of a specified thing or activity. The specific thing or activity may be a product, job, services, process or any activity. Thus, the cost can be termed as the number of resources given up in exchange for some goods or services.

Question 18.
What are the opportunity cost and joint cost?
Answer:
Opportunity cost: The opportunity cost of goods or services is measured in terms of revenue which could have been earned by employing that goods or services in some other alternatives use.

Joint cost: When two or more than two products are being produced. Some separate cost has occurred for a separate product which called separate cost but some type of expenses cost occurred the same for all types of products which is called joint cost.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
What do you mean by product and product mix? What is the product dimension?
Answer:
Meaning of Product: A product is an item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at price. The price that can be charged depends on the market, the quality, the marketing and segment that is targeted. The product needs to be functionally able to do what it is supposed to, and do it with good quality, users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives.

Meaning of Product Mix: Products refers to anything which is offered to the public for sale. It may be a physical object, service or an idea, Product mix deals with decisions concerning varieties quality features, packaging, size, brand guarantee and services to be offered in respect of the firm’s product.
Dimensions of Products:

• Product line
• Product size
• Product output
• Product width
• Product quality and standard
• Product Brand
• Product Depth
• Product Labelling and Trademark
• Product packaging
• Product Designs.

Question 20.
What is meant by Brand? Explain the characteristics of a good brand.
Answer:
Meaning of Brand: A brand is a name, term, sign, symbol, or some combinations used to identify the products of one firm and to differentiate them from competitive offerings. A brand or trademark is an integral part of the symbol appearing on the product. A buyer identifies the product with the brand name and the seller gets a chance to earn goodwill in the market. According to the American Marketing Association. “A brand name is that part of the brand consisting of words or letters that comprise a used to identify and distinguish the firm’s offerings from those of competitors.”

The brand name gives the product a distinguishing mark which differentiates it from the products of the competing companies. For the buyers as well as sellers, the marketing process becomes more easily with the brand name. The brand mark s a symbol, design, or another element of a brand that can not be .poken. It could be recognised by sight only. For example, the symbol of ‘Maharaja’ of Air India, the inscribed polo layer on Ralph Lauren Polo Shirts, etc.

Branding is the management process by which a product is branded. It is a general term covering various activities such as giving a brand name to a product, designing a brand mark, and establishing and popularising it. Characteristics of Brand: A good brand name is helpful for advertising and publicity in the market. Name of the brand must be carefully selected. Even multinational marketing firms face a particularly acute problem in selecting brand names. A very good brand name in one country may prove disastrous in another.

However, the following are the essential characteristics of a good brand name:
Easy to Pronounce: The brand name should be simple, short and easy to pronounce for people of different cultures and for illiterate persons. Sometimes, people can not pronounce certain words correctly and then they feel hesitant to ask for that product e.g., Crompton, Raymond, Liberty, Woodland etc.

Easy to Remember: The brand which is easy to pronounce are also to remember. These products are easy to advertise.

Right Connotation: A brand should itself suggest something about the product-its use, quality, nature, purpose, performance or action, whenever a buyer sees or hears a brand name, some sort of image is formed in mind, e.g., Chavan Prash, Vicco Vajnardanti, Nescafe Coffee, Tiger Tea, Devdarshan Dhoop etc.
Legally Protectable: The brand name should be legally protected under the legislation. It should not contain any name based on geographical, historical or a name which is used by the general public in the general sense e.g., ghee, cola, transistor, etc. The name should be the creation of the producer like.
Nirma, Wheel in case of washing powder.
Lux, Hamam, PONDS, REXONA in case of toilet soaps. SUFFOLA, DHARA, SUN-FLOWER in case of vanaspati oil. FORHANS. PROMISE, CLOSE-PEPSODENT in case of toothpaste.
VIDEOCON, PHILIPS, SONY, ONIDA in case of TV. and VCR. GODREJ, KELVIN ATIOR, ALWYN,
VIDEOCON in case of Refrigerators etc.
Stability: Brand name should have a stable life and should not be affected by the change in fashion and style.
Uniqueness and Distinctiveness: The original name is one which is quite distinctive, which is not an imitation of others, e.g., RIN, SURF, PHILIPS, ONIDA, TATA, BATA, DCM, etc.

Question 21.
Briefly discuss the process of Planning.
Answer:
Process/Techniques/Steps of planning: Notwithstanding the size, status and nature of a business venture the process of planning is indispensable to all since its reality. However, identical planning can not be implemented in every case. Usually, business planning has to undergo the following stages:
(i) Fixation of Objectives: The first and foremost step is to define and determine the objectives of an enterprise otherwise the planning process can go haywire. The objectives may be on the long-term or short-term basis.

(ii) Collection and Analysis of Informations: First of all the objectives are defined and determined and thereafter for the realization of the objectives all the relevant information are obtained. Following an analysis of such information, the basis of planning is undertaken.

(iii) Selection of Alternative Sources: There are several ways of achieving the objectives. The evaluation of such options in terms of strategy, cost and effects need to be studied and from all the available alternatives the best one is to be followed.

(iv) Study the Limitations of Planning: planning is meant for the future. After deciding about the beautiful native its limitation should also be studied. After a review of the strategies for the realisation of the objectives, the problem hurdles in this way should also be evaluated by leaving a little space for any change.

(v) Formulation of the plan: In accordance with the objective here starts the process of planning. There need to move ahead in a sequence stepwise, after having evaluated the various aspects, a final shape is given to the future planning.

(vi) Formulation of sub-plans: With the help of the cardinal plan various sub-plans are undertaken to facilitate the achievement of the objectives. Such sub-plans are not independent entities rather they are the integral parts of the main plan.

(vii) Determining Time Limit: It becomes imperative to give a time frame to major and sub-plans. Every step of planning must be time-bound as which job is to be completed in how many days so as complete control on these activities could be ensured.

(viii) Evaluation: Planning is a perpetual phenomenon. It is not a one-time job and can never be concluded rather it warrants a consistent appraisal and it is also required to ensure compliance of actions with the planning.

Question 22.
Why time boundation is essential in planning?
Answer:
Business owners develop plans to reach their overall goals, and they usually find it useful to separate planning into phases. The different time frames of the planning process place the focus on time-sensitive aspects of the company’s structure and environment.

(i) Short Term Planning: Short term planning looks at the characteristics of the planning in the present and develops strategies for improving them, short term planning takes twelve months or less.

(ii) Medium Term planning: Medium-term planning usually for more than twelve months and fewer team 5yrs. It applies more permanents solutions to short-term problems. If there are quality issues, the medium-term response is to revise and strengthen the company’s quality control program.

(iii) Long Term Planning: Long-term planning organise for more than five years. In the long term, companies want to solve problems permanently and to reach their overall targets. Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long term goals.

Question 23.
What do you mean by market assessment? What are the factors affecting market assessment?
Answer:
Market Assessment: Goods are produced and facilitate for providing services are created in anticipation of their demand the ultimate aim of these activities is that these reach these for whose these are meant. The commodities are needed for consumption and used by the ultimate consumers. The services are utilised by whose. Who was want to derive satisfaction out of them?

Factors Affecting the market assessment of follows:
(i) Satisfying customers needs: The concept of the market begins with the identification of the customer’s needs. It forces on producing goods or services commensurate with the wants of the customers. Thus it raises the standard of living of the customers.

(ii) Economic Development: Market plays an important role in raising the economic standard of a nation. It purchases and sale qualitative products of competitive rates not only for the internal consumption but also for more and more countries. On the other hand, it serves the citizens and on the other, it adds to the wealth of a nation. It tries to strengthen the foreign exchange reserves by exporting goods and services. Thus it strengthens a country on the economic front:

(iii) Accomplishing the Objectives of the sellers: Market helps in achieving the objectives of the sellers. The seller may be earning profit and public welfare. The market tends to find out what the customers want. The marketeers try to produce according to need felt of the ultimate customers. Thus the market plays an important role to achieve the two-fold objectives earning profit and satisfying customers.

(iv) Improves the standard of living: Market helps in raising the quality of life of common people and the standard of living by providing a new and improved variety of goods and services to them. It makes goods and services available at lower prices.

Question 24.
Define planning? What are its features?
Answer:
Planning: It is deciding in advance what to do how to do it, when to do it and who is to do it. It makes possible for things to occur which would not otherwise happen.
“Planning is selecting information and making assumptions regarding the future to formulate activities necessary to achieve organisational objectives.”

In words of Henri Fayol ‘Planning means to assess the future and make provision for it. The plan of action is at one and the same time the result envisaged in the line of action to be followed, the stage to go through the methods to use.
Features of Planning: The meaning of planning and its definition, as given above reveal its features, which may be stated as:
(i) The Basis function: Planning is the first function of management. It proceeds all other function viz. Organising, staffing, directing and controlling. Planning determines the objectives and course of action be followed without objectives and course of action, other functions are meaningless.

(ii) A continuity Activity: Plans need continuous review with the view to take cognisance of the nature of economics to keep an equilibrium in changing pattern of demand and supply. Involving co-ordination of different function of management and thus keep the business in perfect running condition, planning is a dynamic concept.

(iii) The activity of the cognitive domain: Planning relates to the cognitive domain. It is a domain of contemplation and thinking. Under planning, the managers think and arrive at a consensus of laying down ways and means to achieve the goal.

(iv) Efficiency increasing activity: Planning increase efficiency. Planned actions are always better than the non-planned ones. Planning establishes a system which helps in doing the job smoothly and quickly.

(v) Choice making activity: There may be different alternatives for finding a solution to a problem. Planning tends to choose the best course of action from different alternatives.

(vi) Based on forecasting: Planning follows forecasting. Forecasting is a technique of anticipating facts relating to the future. It is an intelligent guess of future. Planning is made on the basis of scientific predictions about the future.

(vii) Objective Oriented Activity: Planning gets inspiration from objectives. Koontz and O’Donnel have stated that “the purpose of every plan and all derivatives plan is to facilitate the accomplishment of enterprise purpose and objectives.”

Bihar Board 12th Accountancy Model Question Paper 3 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. In Section – A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
7. In Section – B there are Non-objective type questions. There are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Income & Expenditure Account records transaction of-
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) None of these
Answer:
(a) Revenue nature only

Question 2.
Donations received for special purposes-
(a) Should be credited to income & expenditure A/c
(b) Should be credited to separate account and shown in the balance sheet.
(c) Should be shown on the assets side
(d) None of these
Answer:
(c) Should be shown on the assets side

Question 3.
Subscription received by a school for organising annual function is treated as
(a) Capital Receipt
(b) Revenue Receipt
(c) Assets
(d) Earned Income
Answer:
(a) Capital Receipt

Question 4.
Out of the following items, which one is shown in the Receipts and Payments Account?
(a) Outstanding salary
(b) Depreciation
(c) Life Membership Fees
(d) Accrued subscription
Answer:
(d) Accrued subscription

Question 5.
The account is a summary of
(a) Income & Expenditure A/c
(b) Cash Book
(c) Balance sheet
(d) None of these
Answer:
(b) Cash Book

Question 6.
Capital fund is calculated-
(a) Income – Expenditure
(b) Assets – Liability
(c) Capital + Liability
(d) None of these
Answer:
(b) Assets – Liability

Question 7.
Subscription received in advance during the current year is
(a) An Income
(b) An Asset
(c) A Liability
(d) None of these
Answer:
(c) A Liability

Question 8.
Most transactions in non-trading concerns are-
(a) Cash
(b) Credit
(c) Cash and credit both
(d) None of these
Answer:
(a) Cash

Question 9.
If at the time of admission of a new partner, some profit & loss account balance appears in the books, it will be transferred to
(a) Profit and Loss Appropriation A/c
(b) All partners capital A/c
(c) Old partners capital A/c
(d) Revaluation A/c
Answer:
(b) All partners capital A/c

Question 10.
Assets and Liabilities are shown at their re-valued values in
(a) New balance sheet
(b) Revaluation A/c
(c) All partners capital A/c
(d) Realisation A/c
Answer:
(b) Revaluation A/c

Question 11.
If the Incoming partner brings the amount of goodwill in cash and also a balance exists in goodwill A/c, then this goodwill A/c is written off among the old partners in
(a) In new profit sharing ratio
(b) In old profit sharing ratio
(c) In sacrifice ratio
(d) In gaining ratio
Answer:
(b) In old profit sharing ratio

Question 12.
The amount of goodwill is paid by the new partner
(a) For payment of capital
(b) For sharing the profit
(c) For purchase of assets
(d) None of these
Answer:
(a) For payment of capital

Question 13.
Gaining Ratio is
(a) New Ratio – Sacrifice Ratio
(b) Old Ratio – Sacrifice Ratio
(c) New Ratio – Old Ratio
(d) Old Ratio – New Ratio
Answer:
(c) New Ratio – Old Ratio

Question 14.
On reconstitution of the firm, an increase in the value of assets will result in
(a) Gain to existing partners
(b) The loss to existing partners
(c) Neither gain nor loss to existing partners
(d) None of these
Answer:
(a) Gain to existing partners

Question 15.
Goodwill is a ______ asset
(a) Worthless
(b) Tangible
(c) Valueless
(d) Valuable
Answer:
(d) Valuable

Question 16.
Which accounts are opened when the capitals are fixed?
(a) Only capital accounts
(b) Only current accounts
(c) Liability account
(d) Capital and current A/c
Answer:
(d) Capital and current A/c

Question 17.
In the absence of a partnership deed, partners are not entitled to receive
(a) Salaries
(b) Commission
(c) Interest on capital
(d) All of these
Answer:
(c) Interest on capital

Question 18.
The relation of partners with the firm is that of-
(a) An owner
(b) An agent
(c) An owner and an agent
(d) Manager
Answer:
(a) An owner

Question 19.
Number of partners in an ordinary partnership firm maybe
(a) Maximum two
(b) Maximum ten
(c) Maximum twenty
(d) Maximum fifty
Answer:
(c) Maximum twenty

Question 20.
A preparing partnership deed is
(a) Compulsory
(b) Partly compulsory
(c) Voluntary
(d) None of these
Answer:
(a) Compulsory

Question 21.
Liability of partner is
(a) Limited
(b) Unlimited
(c) Determined by partnership Act
(d) None of these
Answer:
(b) Unlimited

Question 22.
The surrender value of an insurance policy means that value
(a) Which is received on the death of a partner.
(b) Which is received when a policy matures.
(c) Which can be received before the due date of the policy.
(d) None of the above
Answer:
(c) Which can be received before the due date of the policy.

Question 23.
On the retirement of a partner, goodwill will be credited to the capital account of
(a) Retiring partner
(b) Remaining partners
(c) All partners
(d) None of the above
Answer:
(b) Remaining partners

Question 24.
Partnership act provides that interest on the amount of capital balance left by the retiring partner be paid at
(a) 5%
(b) 6%
(c) Bank rate
(d) 8%
Answer:
(b) 6%

Question 25.
Excess of credit side over the debit side in Revaluation Account is
(a) Profit
(b) Loss
(c) Receipt
(d) Expense
Answer:
(a) Profit

Question 26.
Subject to the permission allowed, the maximum allowable discount on equity shares is
(a) 5%
(b) 10%
(c) 12%
(d) 20%
Answer:
(b) 10%

Question 27.
Amount of calls in Arrear is
(a) Added to capital
(b) Deducted from share capital
(c) Shown on the asset side
(d) Shown on the equity and liability side
Answer:
(b) Deducted from share capital

Question 28.
Forfeiture of shares results in the reduction of
(a) Paid-up capital
(b) Authorised capital
(c) Reserve capital
(d) Fixed assets
Answer:
(a) Paid-up capital

Question 29.
Discount allowed on the reissue of forfeited shares is debited to
(a) Share capital A/c
(b) Share forfeited A/c
(c) Profit & Loss A/c
(d) General reserve A/c
Answer:
(d) General reserve A/c

Question 30.
Company premium on issue of debenture is a
(a) Capital Gain
(b) Profit
(c) Revenue Receipt
(d) Asset
Answer:
(c) Revenue Receipt

Question 31.
Discount in the issue of Debentures is in the nature of
(a) Revenue Loss
(b) Capital Loss
(c) Deferred Revenue expenditure
(d) None of these
Answer:
(b) Capital Loss

Question 32.
On Liquidation of a company, the principal amount of debentures is returned
(a) First of all
(b) Last of all
(c) Before equity capital
(d) None of these
Answer:
(c) Before equity capital

Question 33.
Debenture holder receives
(a) Dividend
(b) Interest
(c) Both dividend and interest
(d) Bonus
Answer:
(b) Interest

Question 34.
According to SEBI guidelines, what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redemption of debentures, in case of convertible debentures?
(a) 25%
(b) 50%
(c) 100%
(d) Zero
Answer:
(b) 50%

Question 35.
Profit on the redemption of debentures is transformed to which account?
(a) Capital Reserve Account
(b) Sinking Fund Account
(c) General Reserve Account
(d) Profit & Loss A/c
Answer:
(a) Capital Reserve Account

Question 36.
Proft on cancellation of own debenture is
(a) Revenue Profit
(b) Capital Profit
(c) Operating Profit
(d) Trading Profit
Answer:
(b) Capital Profit

Question 37.
Which of the following is correct profit or loss in case of the amount received from the sale of assets is Rs. 50,000, total assets is Rs. 60,000, total liabilities Rs. 20,000 and realisation exp. Rs.,2000?
(a) Rs. 8000 loss
(b) Rs. 12,000 loss
(c) Rs. 32,000 profit
(d) None of these
Answer:
(b) Rs. 12,000 loss

Question 38.
Sundry creditors amounted to Rs. 8000. These were paid at a discount of 5% Realisation A/c will be debited by
(a) Rs. 8000
(b) Rs. 7600
(c) Rs. 400
(d) Rs. 8400
Answer:
(c) Rs. 400

Question 39.
On dissolution of a firm, credit balance of partner’s capital account is paid to
(a) Partners
(b) Firm
(c) Wife
(d) None of these
Answer:
(a) Partners

Question 40.
On dissolution of the firm, partner’s capital A/c is closed through
(a) Realisation A/c
(b) Drawings A/c
(c) Bank A/c
(d) Loan A/c
Answer:
(c) Bank A/c

Question 41.
Which of the following is not a source of cash?
(a) purchase of fixed assets
(b) fund from operations
(c) issue of debentures
(d) sale of fixed assets
Answer:
(a) purchase of fixed assets

Question 42.
The ideal current ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 3 : 4
Answer:
(a) 2 : 1

Question 43.
The ideal debt equity ratio is
(a) 1 : 1
(b) 1 : 2
(c) 2 : 1
(d) 3 : 4
Answer:
(a) 1 : 1

Question 44.
Interpretation of financial statement includes
(a) criticism and analysis
(b) comparison and trend study
(c) drawing conclusion
(d) all of these
Answer:
(d) all of these

Question 45.
Dividends for the shareholders are
(a) payable tax amount
(b) tax-free amount
(c) interest
(d) none of these
Answer:
(d) none of these

Question 46.
Debenture holder receives
(a) dividend
(b) profit
(c) interest
(d) none of these
Answer:
(c) interest

Question 47.
Profit of cancellation of ‘Own debenture’ is transferred to
(a) profit & loss appropriation A/c
(b) debenture redemption A/c
(c) capital reserve A/c
(d) none of these
Answer:
(c) capital reserve A/c

Question 48.
The debenture is the part of
(a) share capital
(b) loan
(c) owned capital
(d) creditor
Answer:
(b) loan

Question 49.
Debenture carries interest at
(a) 12% p.a.
(b) 20% p.a.
(c) fixed rate
(d) 6% p.a.
Answer:
(c) fixed-rate

Question 50.
A company issues its shares at a premium under which Section of Indian Companies Act,1956?
(a) 78
(b) 79
(c) 80
(d) 81
Answer:
(c) fixed-rate

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 × 3 = 30)

Question 1.
State any three purposes for which share premium can be utilised?
Answer:
Following are the three purposes for which share premium can be utilised

• Issuing fully paid bonus shares to the members
• Writing off the preliminary expenses of Company
• In purchasing its own shares Buyback.

Question 2.
From the following information, calculate the stock turnover ratio.
Sales: Rs. 4,00,000
Average stock: Rs. 55,000
Gross Loss Ratio: 10%
Answer:
Sales = 4,00,000
Gross Loss Ratio = 10%
Average Stock = 55,000
Stock Turnover Ratio = Net sales/Avg. stock = 400000/55000 = 7.28 times

Question 3.
Prakash Industries issued Rs. 4,00,000, 9% debentures of Rs. 100 each on April 01, 2012, at a premium Of 6% redeemable at a premium of 10% on 31st March 2016. The debentures were redeemed on the due date. Pass only journal entries for the redemption of the debenture.
Answer:
In the Books of Prakash Industries.

Question 4.
Define the term DDL in RDBMS.
Answer:
A DDL is a language used to define data structure and modify data. For example, DDL commands can be used to add, remove or modify tables within a database. A data definition language has a pre-defined syntax for describing data.

Question 5.
Explain the primary key & candidate key.
Answer:
Primary key: A primary key is a column or a combination of columns that uniquely identify a record.
Candidate key: A candidate key can be any column or a combination of columns that can quality as a unique key in the database. There can be multiple candidate keys in one table. Each candidate key can quality as a primary key.

Question 6.
Explain Table, Record & Attributes in RDBMS.
Answer:

• Table: A table is a collection of data elements organised in terms of rows and columns.
• Records: Record in a table represents a set of related data.
• Attributes: The term “Attribute” is also used to represent a column. For example, in the Employee table, Name is a column that represents the names of the employee.

Question 7.
What is the chart in MS-Excel? Explain its importance.
Answer:
A chart is a powerful tool that allows you to visually display data in a variety of different chart formats such as Bar, Column, Pie, Line, Area, Doughnut. Scatter, Surface or Radar charts with Excel, it is easy to create a chart.
Following are the importance of chart:

• Visualization: Excel charts allow spreadsheet administrators to create visualizations of data sets.
• Automation: The Excel application automates the process of generating charts from existing data sets.
• Customisation: The chart functions in excel users to strike a balance between automation and customization.
• Integration: If a business or other organisation is using spreadsheet data managed within excel, using the chart function within excel aids integration of the data.

Question 8.
Mention any four provisions of the Partnership Act, in the absence of partnership deed.
Answer:
Following are the four provisions of the partnership Act, in the absence of partnership deed:

• Salary and commission
• Sharing of profits
• Interest on Capital
• Interest on Drawing

Question 9.
X and Y are partners. X’s capital is Rs. 10,000 and Y’s capital is Rs. 6,000. Interest is payable @ 6% p.a. on capital. Y is entitled to a salary of Rs. 200 per month. Profit for the current year is Rs. 8,000 before interest and salary to Y. Divide the profit between X and Y.
Answer:
Profit and Loss Appropriation Account.

Question 10.
What options are available to a company for allotment of debentures in case of over-subscription?
Answer:
In case of oversubscription following options available to a company:

• The excess application money on over applied debentures is refunded to the applicants
• Excess applications may be retained for adjustments towards allotment and call money. In such a case, applicants get pro-rata allotment
• Some applications may be rejected outright and applications money on such applications is returned.

Question 11.
Calculate the operating ratio from the following data:
Sale: Rs. 6,40,000
Sales Return: Rs. 40,000
Cost of goods sold: Rs. 4,60,000
Operating expense: Rs. 40,000
Answer:
Calculation of operating Ratio:

where, Net Sales = Sales – Return = 640,000 – 40,000 = 600,000

Question 12.
A company took a loan of Rs. 2,00,000 from a Bank and placed with the Bank debentures for Rs. 2,50,000 as collateral securities. Show how they will appear in the company’s Balance Sheet.
Answer:
Balance Sheet

Question 13.
The Current Assets of a company are Rs. 15,00,000. Its Current ratio is 3 : 1 and Liquid ratio is 1.25 : 1. Calculate the amount of Current Liabilities, Liquid Assets and Inventory.
Answer:

Quick (liquid) Assets = (500,000 × 1.25) = 625,000
Inventory = Current Assets – QuickAssets = 1500,000 – 625,000 = 875,000

Question 14.
Explain absolute cell references in Excel.
Answer:
An absolute reference is designed in a formula by the addition of a dollar sign (&). It can precede the column reference, the row reference, or both.

Question 15.
Define RDBMS.
Answer:
A rational database management system (RDBMS) is a program that lets you create an update, and administer a relational database.

Question 16.
Explain the functions of SQL command in the following:
Alter & Update.
Answer:
The SQL ‘ALTER’ table command is used to add, delete or modify columns in an existing table.
The SQL ‘UPDATE’ command can update records for single table only.

Question 17.
Define types of SQL (DML & DCL).
Answer:
DML: Data manipulation language (DML) is used to retrieve, store, modify, delete, insert and update data in the database.
DCLA: data control language (DCL) is a syntax similar to a computer programming language used to control access to data stored in a database.

Question 18.
Explain Database design.
Answer:
Database design is the process of producing a detailed data model of a database. This data model contains all the needed logical and physical design choices and physical storage parameters needed to generate a design in a data definition language which can then be used to create a database. A fully attributed data model contains detailed attributes for each entity. The term data Dase design can be used to describe many different parts of the design of an overall database system.

Question 19.
Explain Schema & Subschema.
Answer:
Schema: 4 scheme is the design or layout of a database management system. It will often have a list of units or entities that feature in the database and describe the relationships between them. A schema often remains unchanged despite the volatile nature of the database.
Sub-schema: A sub-schema is. the best described as the way that the data in a DBMS appears when viewed by an application or a user.

Question 20.
Explain the financial function NPV ( ) in Excel with example.
Answer:
In finance Net present value (NDU) is defined as the sum of the present values of incoming and outgoing cash flows over a period of time.

Question 21.
Describe the pivot table in Excel, under ‘what-if analysis tool.
Answer:
By using ‘what-if analysis tools in Excel we can use several different sets of value in one or more formulas to explore all the various results.

Question 22.
Describe the processes of sorting in Excel.
Answer:
Excel provides a tool for sorting the given data according to multiple fields, you can sort your data on up to 64 different fields. The field may be Name, address, number, grades or any other field.

Question 23.
Write appropriate SQL commands to create an Employ table with required columns.
Answer:
The SQL create table statement is used to create a table to store data. Integrity constraints like primary key, unique key, a foreign key can be defined for columns while creating the employee table. The integrity constraints can be defined at the column level or table level.
Table Name i.e. column-1, column-2
Data type i.e. char, data, No, etc.

Question 24.
State four features of Income and Expenditure Account.
Answer:
Following are the Four features of Income and Expenditure A/c:

• It is a Nominal account.
• It is prepared from the Receipts and payments Account and other relevant information.
• Items are capital nature are not shown in this account.
• It shows the income and expenditure of the current year only on an accrual basis.

Question 25.
Distinguish between Fixed capital and fluctuating capital.
Answer:
Following are the differences between Fixed and Fluctuating capital A/c.

Long Answer Type Questions

Question No. 26 to 33 are long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
How would you calculate the amount payable to the retiring partner?
Answer:
Considering the following point, we can calculate the amount payable to the retiring partner.
(I) Entire amount co be paid in cash.
(i) If fund available:
Journal Entry:
Retiring partner’s capital A/c -Dr.
To Cash A/c
(ii) If the loan is taken from the bank:
(a) Bank or cash A/c -Dr.
To Bank loan A/c
(b) Retiring partner’s capital A/c -Dr.
To Bank or Cash A/c

(II) By transferring capital Balance into Retiring partner’s loan Account:
Journal Entry:
Retiring Partner’s Capital A/c -Dr.
To Retiring Partner’s Loan A/c

(III) Payment partly in cash and partly by transferring to loan A/c.
Journal Entry:
Retiring Partner’s Capital A/c -Dr.
To Cash A/c
To Retiring Partner’s Loan A/c

(IV) Payment of Retiring partner’s loan in Instalments.
Journal Entry:
(a) Interest A/c -Dr.
To Retiring Partner’s Loan A/c
(b) Retiring Partner’s Loan A/c -Dr.
To Cash or Bank A/c
(c) Profit & Loss A/c -Dr.
To Interest A/c

Question 27.
A, B arid C were partners in firm sharing profits in the ratio of 4 : 3 : 3. On 1.4.2013 they decided to dissolve the firm. On that date, A’s is capital was Rs. 1,25,000, B’s is capital was Rs. 45,000 and C’s capital was Rs. 15,000 (Dr.). The creditors amounted to Rs. 23,150 and cash in hand were Rs. 4,520. The assets realised Rs. 1,44,910 and the expenses of dissolution were Rs. 1,860. Prepare Realisation Account.
Answer:
The balance sheet on the date of dissolution is not given in the question. Hence Balance sheet on the date i.e. 1.09.2013 shall be prepared to ascertain the value of assets.

Question 28.
On 1st April 2013, Golu Ltd. was the holder of 500 shares of Rs. 10 each. He has paid Rs. 4 per share. At a meeting of the directors held on that date his shares were forfeited for non-payment of the first & final calls of Rs. 2 and Rs. 4 per share respectively. On 1st May 2013, these shares were re-issued fully paid to Maganlal for Rs. 4,500. Give Journal entries in the books of the company.
Answer:

Question 29.
Satyam Ltd. issued 15,000 debentures of Rs. 10 each payable as follows: Rs. 2 on the application, Rs. 3 on the allotment, Rs. 5 on first & final calls. All the debentures were applied for and allotted. All money due was received, pass necessary journal entries.
Answer:

Question 30.
Journalise the following transactions for issue of debentures
(a) A debenture issued at Rs. 95 and redeemed at Rs. 100
(b) A debenture issued at Rs. 95 and will be redeemed at Rs. 105.
(c) A debenture issued at Rs. 100 and will be redeemed at Rs. 105.
Answer:

Question 31.
Calculate cash flow from operating activities from the following balances:

Answer:

Question 32.
From the following Balance Sheets of Goodluck Ltd. prepare cash flow statement according to Revised Accounting Standard 3 by the indirect method:

Answer:

Bihar Board 12th English 100 Marks Model Question Paper 1

Time: 3 Hours + 15 Minutes
Full Marks : 100

Instructions

1. Candidates are required to give their answers in their own words as for as practicable.
2. Figures in the right hand margin indicate full marks.
3. While answering the candidate should adhere to the words limit as far as practicable.
4. 15 minutes of extra time has been allotted to the candidates to read the questions and follow the instructions carefully.
5. All questions are compulsory.
6. Use of any electronic device is strictly prohibited.
7. This question paper is divided into two sections Section-A and Section-B.
8. In Section-A, there are 50 objective type questions, each carrying 1 mark. Darken the circle with blue/black ball pen against the correct option on OMR sheet provided to you. Do not use Whitener/Liquid/Blade/Nail on OMR Answer Sheet; otherwise, the result will be treated as invalid.
9. In Section-B there are descriptive type questions.

Section – A
Objective Type Questions

Choose the most suitable answer from the choices given below.

Question 1.
Who gave you permisson to enter? (Choose the best passive voice)
(a) By whom where you given the permisson to enter?
(b) By whom given you permission to enter?
(c) By whom you were given permission to enter?
(d) By whom was given permisson to enter?
Answer:
(c) By whom you were given permission to enter?

Question 2.
He has been decive by his own friend (Choose the best active voice)
(a) His friends had been deceiving him.
(b) His own friends are deceiving him.
(c) His own friends has deceiving him.
(d) His own friends were been deceiving him.
Answer:
(b) His own friends are deceiving him.

Question 3.
They _______ their new car two weeks ago. (choose the correct tense form)
(a) will buy
(b) have bought
(c) buy
(d) bought
Answer:
(b) have bought

Question 4.
What _______ you doing when I ment you? (choosethe best option)
(a) were
(b) was
(c) are
(d) did
Answer:
(a) were

Question 5.
Health is very important. It must not be negleeted. (Choose the correct combination)
(a) Health is very-important to be negleeted.
(b) Health is too important to be negleeted.
(c) Health is not important to be neglectd.
(d) Health has too important to be neglected.
Answer:
(b) Health is too important to be negleeted.

Question 6.
_______ you lend me you book. (Choose the auxiliary verb)
(a) Shall
(b) Will
(c) Must
(d) Have
Answer:
(b) Will

Question 7.
I _______ a letter to her yesterday. (Choose the best verb form)
(a) had written
(b) can write
(c) worte
(d) will write
Answer:
(a) had written

Question 8.
Scorates said, “Virtue is its own reward.” (Chosse the best option)
(a) Socrates said that virtue had its own reward.
(b) Socrates say that virtue has its own reward.
(c) Socrates said virtue is its own reward.
(d) Socrates sasy that virtue was its own reward.
Answer:
(c) Socrates said virtue is its own reward.

Question 9.
He asked me whether I has finished reading the magzine (Choose the best option)
(a) He says to me, “Have you finished reading the magazine?”
(b) He says to me, “Have you finished reading the magazine?”
(c) He says told me, “Have you finished reading the magazine?”
(d) He ordered, “Have you finished reading the magazine?”
Answer:
(c) He says told me, “Have you finished reading the magazine?”

Question 10.
You’ll get used to _______ early moring walks.
(Choose the best meaningful expression)
(a) take
(b) be taking
(c) taking
(d) betaken
Answer:
(a) take

Question 11.
I used _______ to the cinema a lot. (Choose the
best meaning expression)
(a) go
(b) going
(c) to go
(d) to going
Answer:
(c) to go

Question 12.
Have you heard her _______ a joke? (Choose the best meaningful expression)
(a) to tell
(b) to have told
(c) tell
(d) to telling
Answer:
(d) to telling

Question 13.
_______ his surprise, the door was open. (Choose the correct preposition)
(a) To
(b) By
(c) On
(d) With
Answer:
(a) To

Question 14.
The cat jumped _______ the chair. (Choose the correct preposition)
(a) inside
(b) onto
(c) out
(d) at
Answer:
(d) at

Question 15.
I t is a painting a famous painter. (Choose the correct preposition)
(a) by
(b) in
(c) at
(d) for
Answer:
(a) by

Question 16.
Choose the correct sentence :
(a) He gave me many advices.
(b) He gave advices many.
(c) He gave many advices.
(d) He gave m e many pieces of advice.
Answer:
(a) He gave me many advices.

Question 17.
Choose the correct sentence :
(a) There are fewer students in the class today.
(b) There are less students in the class today.
(c) There are heavy students in the class room.
(d) There are much students in the class today.
Answer:
(b) There are less students in the class today.

Question 18.
Choose the correct sentence :
(a) He came here by foot
(b) He came here an foot.
(c) He came here at foot.
(d) He came here over foot.
Answer:
(b) He came here an foot.

Question 19.
I am tired of _______ (Choose the best option)
(a) waiting
(b) had to wait
(c) to wait
(d) wait
Answer:
(a) waiting

Question 20.
I don’t feel like _______ It. (Choose the best option)
(a) do
(b) will do
(c) to do
(d) doing
Answer:
(c) to do

Question 21.
She liked _______ many question at the press conference. (Choose the best option)
(a) being asked
(b) of asking
(c) asked
(d) ask
Answer:
(b) of asking

Question 22.
I’d like _______ to movie this afternoon. (Choose the best option)
(a) to go
(b) will go
(c) going
(d) go
Answer:
(a) to go

Question 23.
It’s Thursday today. Tomorrow it _______ Friday. (Choose the best option)
(a) be
(b) will be
(c) was
(d) will
Answer:
(b) will be

Question 24.
A person who rarely speaks the truth is a _______ (Choose the correct answer)
(a) Crook
(b) Scoundrel
(c) Liar
(d) Hypocrite
Answer:
(b) Scoundrel

Question 25.
I don’t think Rajesh is _______ tho lift this box. (Choose the best option)
(a) Enough stomg
(b) too strong
(c) Stomg enough
(d) strong too
Answer:
(a) Enough stomg

Question 26.
Find the correctly spelt word:
(a) Livelihood
(b) Livlihood
(c) Livelyhood
(d) Livelyhood
Answer:
(a) Livelihood

Question 27.
Find the correctly spelt word:
(a) Sycological
(b) Pshkological
(c) Psychologeical
(d) Sykological
Answer:
(c) Psychologeical

Question 28.
Juhi _______ a blue skirt today. (Choose the best option)
(a) wears
(b) wear
(c) wearing
(d) is wearing
Answer:
(a) wears

Question 29.
The phone _______ Can you answer it please ?
(Choose the best option)
(a) rings
(b) rang
(c) ring
(d) is ringing
Answer:
(a) rings

Question 30.
I am _______ prepared. (Choose the best option)
(a) full
(b) fell
(c) fully
(d) felt
(b) fell

Question 31.
The sentence ‘Civilization is that mode of conduct which points out to man the path of duty’ is from (Choose the correct option)
(a) Indian civilization and Culture
(b) A Child is Bom
(c) The Earth
(d) I Have a Dream
Answer:
(a) Indian civilization and Culture

Question 32.
‘Bhara is My home is written by : (Choose the correct option)
(a) Germaine Greer
(b) Shiga Naoya
(c) Pearl S. Buck
(d) Zakir Hussain
Answer:
(b) Shiga Naoya

Question 33.
Dorothy L. Sayers is a/an _______ (Choose the correct option)
(a) novelist
(b) singer
(c) essayist
(d) actor
Answer:
(c) essayist

Question 34.
Shiga Naoya is a short story writer.
(a) Japanese
(b) Chinese
(c) Korean
(d) Malaysian
Answer:
(a) Japanese

Question 35.
Benjy’s parents had rented their land to a man named – (Choose the correct option)
(a) Sanders
(b) Kris
(c) Alexander
(d) Michael
Answer:
(d) Michael

Question 36.
Pearl S. Buck taught in a _______ University. (Choose the correct option)
(a) Chinese
(b) American
(c) African
(d) British
Answer:
(a) Chinese

Question 37.
Anton Chekov began his literary by writing- (Choose the correct option)
(a) short stories
(b) poems
(c) dramas
(d) comic sketches
Answer:
(d) comic sketches

Question 38.
The line ‘O how feeble is man’s power’ – is from : (Choose the correct option)
(a) Fire-Hymn
(b) To autumn
(c) Snake
(d) Sweetest Love I Do Not Goe
Answer:
(d) Sweetest Love I Do Not Goe

Question 39.
‘Leaves of Grass’ is collection of poems by- (Choose the correct option)
(a) John Donne
(b) W.H.Auden
(c) T. S. Eliot
(d) Walt Whitman
Answer:
(d) Walt Whitman

Question 40.
‘Whispering neighbors, left and right’ is from- (Choose the correct option)
(a) Fire-Hymn
(b) Now the Leavesa are falling Fast
(c) The Soldier
(d) To Autumn
Answer:
(b) Now the Leavesa are falling Fast

Question 41.
‘Lamia’ and ‘Hyperion’ are weriten by- (Choose the correct option)
(a) William Wordsworth
(b) P.B.Shelley
(c) John Keats
(d) S.T. Coleridege
Answer:
(c) John Keats

Question 42.
Macavity the cat is full of – (Choose the correct option)
(a) cham
(b) deceit
(c) beauty
(d) honesty
Answer:
(b) deceit

Question 43.
Sankes were seen among _______ in ‘My Grand Mother’s House’- (Choose the correct option)
(a) beds
(b) chairs
(c) books
(d) tables
Answer:
(c) books

Question 44.
The line ‘Here lies a most beautiful lady’ is from – (Choose the correct option)
(a) Sanke
(b) To Autumn
(c) Fire-Hymn
(d) An Epitaph
Answer:
(d) An Epitaph

Question 45.
The development of was helped by the introduction of _______ the printing technology. (Choose the correct option)
(a) Old English
(b) Modem English
(c) Middle English
(d) None of these
Answer:
(c) Middle English

Question 46.
‘Untouchable’ and ‘Coolie’ are written by – (Choose the correct option)
(a) R.K. Narayan
(b) B. C. Chattopdhyay
(c) M.R. Anand
(d) S.C. Chatterjee
Answer:
(a) R.K. Narayan

Question 47.
Hamlet’ and ‘Othello’ are written by – (Choose the correct option)
(a) G.. B. Shaw
(b) William Shakespeare
(c) Thomas Sachville
(d) T.S. Eliot
Answer:
(b) William Shakespeare

Question 48.
_______ will be common language for use. (Choose the correct option)
(a) Global Standard English
(b) American English
(c) Middle English
(d) British English
Answer:
(a) Global Standard English

Question 49
The world ‘drama’ comes from a _______ word. (Choose the correct option)
(a) Latin
(b) Scandinavian
(c) Indian
(d) Greek
Answer:
(a) Latin

Question 50.
The ‘Romantic Revival’ is associated with- (Choose the correct option)
(a) John Dryden
(b) William Wordsworth
(c) Alexander
(d) John Milton
Answer:
(b) William Wordsworth

Section – B
Non-Objective Type Questions

Question 1.
Write an essay in about 150-200 words on any one of the following (8)
(a) Value of Newspapers
(b) Science in the service of man
(c) Patriotism
(d) If I were a Millionaire
(e) Work is Workshop
Answer:
(a) Value of newspapers:
Information received form different quarters is, fact, treated as news. A newspaper is, thus, paper which contains the most important of such news and carries them to the people in general, it may be called a summary of the important current events.

The newspaper is very important in the life of a civilized nation. It is the medium through which public opinion is expressed. It circulates news and views in which different classes of people are interested. Thus, the teachers, doctors, lawyers, traders, sportsmen, even the children find in it some items of information that interest them.

The newspaper is a powerful means for propagating political views and moulding the opinions of the people towards certain ends. In fact, great change in the administration of a country may be made through the agency of newspapers. It also makes people conscious of their rights and duties and teach them how to protect their rights. Probably the greatest value of newspapers is that they develop and spread knowledge. Through the newspaper we come to know about the views of great thinkers and social refomers.

(b) Science in the service of man:
We are living in an age of science. Miracles of science have changed our lives. The best of the comforts and luxuries that we have today are the contributions of science. Science has made our life easy and comfortable. It has reduced the time, space and distance.

The inventions of science have revolutionized the world of transport. The distance is meaningless today. We have aeroplanes, cars, bullet trains, ships, etc. Within a short time we can cover a very long distance. The world has turned smaller due to these fast means of transport. Man has succeeded in landing on the moon. The means of transport have enabled us to explore the possibility of life on other planet. Space travel is a reality today.

Science has helped us to conquer many deadly diseases. Diseases like tuberculosis and cancer are no longer considered dangerous and incurable. Operations are performed in a painless way. The discovery of X-ray has helped in diagnosis of a disease and in locating an injury or fracture. Electric shocks are a great boon to surgery. In addition, new ultra scanning and plastic surgery are the wonder of science in the field of medicine.

But every silver cloud has a dark lining. Science is both constructive and destructive. It has given nuclear bomb, hydrogen bomb, fighter plane, sophisticated assault guns, pistols and rifles. Laser bombs, missiles and rockets can cause destruction and damage at a distant place.

Thus, science has created as well as annihilated. It is an instrument which needs to be used with rationality. It is a blessing so long as it is used with care and caution. It depends on us how we use it.

(c) Patriotism:
Patriotism is the feeling of love and respect for one’s country. Patriots are known to love their country unconditionally and are proud of it. Every country in the world has its set of patriorts-people who are ready to do anything for their country. However, the spirit of patriotism seems to be fading these days owing to the growing competition in every field as well as the changing lifestyle of people.

In the past, particularly during the British reign, many people came forward to instill the feeling of patriotism among their fellow countrymen. Patriots held meetings, gave lectures and used various other means to inspire the people around them. In the same way, a feeling of patriotism must be instilled in the young generation today too. This must be done when they are still young. School and colleges must fake initiate to instill children with a feeling of love and respect for their country.

Many institutions host functions and organize events on 15th August and 26th January. Patriotic songs are sung and a feeling of patriotism seems to engulf the entire nation around that time. But is this real patriotism? No! Such an atmosphere must be created in general and not just around these special dates. It is then that such a feeling will be instilled in the heart of every citizen forever.

A nation where the youth loves the country and is driven towards improving its condition socially and economically would certainly grow better. A true patriot is the one who’ works hard for the betterment of his country. He contributes his bit towards improving the condition of his country in whatever way he can. A true patriot does not only work towards building his nation but also inspires those around him to do so.

(d) If I were a Millionaire:
If wishes were horses, even beggars would ride. But sometimes dream come true. I am poor in life and my wishes are hopelessly small. I live in a state of uncertainty and I never know whether I shall be able to afford my next meal. But there is no check on one’s fancy. Fancy is my luxury. I wish I we a millionaire! As a poor man, I have often experienced that Rich men are generally selfish to the extent of being cruel. Their outlook on life is not human but materialistic.

They forget that to be rich is not to be in human. When I am rich, I shall not forget god and god’s men. A wealthy man can do much good to this world. Wealth often spoils man. Money along with comforts and care brings evil also. Rich men are generally victims to one evil or the other. I have natural dislike for the base and the disreputable. I was born human and shall live a pious and noble life. This duty o penly man owns to god. I shall fulfill this duty. I shall set a noble example before others and shall be a brilliant light for misguided millionaires.

I would very much wish to encourage social service in the country. I shall make a trust which will look after the welfare of orphans. It is a pity that in our country wealthy persons do not possess charitable qualities. I shall lead a noble life an cut down my own expenses so that I may help others to live better. I am a noble-hearted and simple person.That is what I could remain even if become a millionaire

(e) Work is Worship:
Work is what we make it to be. We all have similar work to do. Yet it is the attitude with which one works that makes the difference to it. If one works with irritation and anger it shows in the work. Even if the work is completed, there would neither have been joy during the process of working nor would there be beauty to the work accomplished.

We have work to do as a student. We need to study. We have to go to school. There are assignments and projects to do. We also participate in various curricular and extra-curricular activities during an academic session at school. All this constitutes our work. If we do it grudgingly, we cannot enjoy the education process. If there is joy in what we have to do, it becomes easier to accomplish. Learning then is fun, not a bore or trouble at all.

When we engage in worship we have the sentiment of respect, love, sincerity, simplicity and truth. There is also a sense of devotion, dedication and excellence in worship. If we could bring these values and such a sentiment to the work that we do, we would convert work to worship.

Question 2.
Explain any one of the following. (1 × 4 = 4)

(a) In no part of the world and under no civillization, have all men attained perfection.
Answer:
A man is hot necessarily happy because he is rich or unhappy because he is poor ? The rich are often seen to be unhappy the poor to be happy.
This extract is taken from ‘Indian Civilization And Culture’ is written by M.K. Gandhi. According to Gandhi, the key to real happiness lies in satisfaction. If we indulge in our passions, our desire gradually increases and even if fulfilled, there is a new craving which does not allows us to be happy and content.

The rich people having luxuries desire for yet more comforts and often poor people not taking interest in luxuries and comforts and often poor people not taking interest in luxuries and comfort bridles his passions and thus keeps himself content, satisfied and happy. So, the key real happiness lies in restriction of desires of our giddy mind and usage of hand and feet. Gandhi defines happiness as largely mental condition. Happiness is a stress less, joyful condition of mind.

(b) And as we walk, we make the pledge that we shall always march ahead.
Answer:
The past is not dead and static.
Dr. Zakir Hussain says that past is not dead and static, it is not worthless because it is alive, it is dynamic and energetic and it is involved in determining the quality of our present and the prospects of coming future. He says that we cant neglect the past because it is thing which lets us know the attribute of our present, it decides outlook of our future. So, although past is gone, it does keep the strength of deciding thing of present and future.

(c) And suddenly the land was for sale: their land, their earth, which was all they had.
Answer:
The life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination.
This line has been taken from ‘I have a Dream’. Written by ‘Martin Luther King Jr. Hear the author says that it has the clear meaning that the life of Negro is still like that of a disabled person because if is captivated with the handcuffs of seperation (on basis of race) and the fetters of discrimination.

The Negroes are thought to be inferior to the whites and so are not given the proper rights of a citizen but are tormented every where. In such circumstances Negroes are like a disabled person who can’t do anything on and for its own. They are racially discriminated everywhere and are still fettered. They are tribulated, tortured and tormented. They are not given the right to vote, they are not allowed to go to public palces and are cut off from the society as if they are not humans. This in human act done with them has crippled their life.

(d) Mother was waiting on the doorstep, her face wreathed in smiles.
Answer:
“This tie-and-collar business is no good these days”.
This line has been taken from the stray ‘A Pinch of Snuff written by Manohar Malgoankar.
By the given statement Nanukaka menat that till then tie-and-collar has become a very common dress and if we had to impress somebody, we should leave this tie-and- collar and instead wear traditional clothes.

Question 3.
Explain any one of the following

(a) Nurses to the grave are gone, And the prams go rolling on.
Answer:
These lines have been taken from the poem ‘Now the Leaves are Falling Fast’. Written by W. H. Auden.
These lines dewlls upon the season that when this season come the leaves start to falling fast. It is also meant by a person who slowly goes to its death and at last in a grave like a tree every human life has to destroy. There is no one who can alive Every one is mortal.

(b) I think she was the most beautiful lady.
That ever was in the West Country.
Answer:
These lines have been composed by Walter de lamare. Here Poet says that it is dome of a dead body, where a death body keep. He wants to tell about a beautiful lady which in the Epitaph. She was the most beautiful lady that ever was in the best country but when she was dead her beauty vanishes beauty passes. Because when a body dead everything is cleared about herself.

(c) I think it did not hit him. But suddenly that part of him that was left behind Convulsed in undignified haste. Writhed like lightening, and was gone.
Answer:
These stanza has been taken from the poem “Sanke” is composed by the poet David Herbert Lawrence. When the speaker saw that snkae drinking water at the trough, firsly he doesn’t want to hit it but later when he feel that if he doesn’t hit, it will bite to him. For this thing he wanted to kill it. That’s why he hit it, which was against the sensibility of the speaker.

(d) However, rare-rare it be; and When I crumble, who will remeber This lady of the west country?
Answer:
These lines have been composed by Walter de lamare. When a body dead everything is cleared about herself. The poet loved her so much that when she was dead he was weeping biterly. When the poet listend about her beloved he crumbled will remember. He used to sit her epitaph where she laid down in her bed. So the poet wants to say that if a person loved someone so much never leave alone. Because he is just facing the problems.

Question 4.
Write a letter to your younger sister/brother, encouring her/him to take part in games and sports.
Answer:
Dear Hitesh

I hope that you are doing well in your studies. There is no doubt that studies are the most important part of a student’s life.

I have come to know that you do not play games. This is not good for a student. Health is wealth. Without good health you cannot think of higher studies.

Games are a necessary part of education.They make us healthy and strong. I therefore advise you to take part in games and sports.

Yours sincerely
Anmol

(OR)

Write an application to the Principal of your School/College to issue you the School/College leaving certificate.
Answer:
To,
The Principal,
S.D.+2 High School,
Nalanda

Subject: Request for School Leave Certificate Sir,
Respectfully, I beg to submit that my father has been transferred to Namaul. He is to join there next week. We are shifting there on Monday, the 16th instant. I, therefore, request you to issue my School-Leaving Certificate.
I have returned all the library books and paid all the dues.

Thanking you.
Yours obediently,
Asim Gupta
Roll No. 5

Question 5.
Answer in about 40-50 words, any five of the following (2 × 5 = 10)

(a) How did Nanukaka impress Sohanlal Ratiram?
Answer:
Nanukaka started describing about his VIP status in a very loud voice so that Sohanlal could hear. He firstly talked about hear. He firstly talked about foreign tours and his contacts with politicians and ministers. Then he come to talk shout Hazrat Barkat Ali, the ambassador in such a tone as if they were best friends and this impresses Shoanlal the most.

(b) Why did Zakir Hussain pledge himself to ?
Answer:
Dr. Zakir Hussain pledges himself to service of absolute timeless, values which have been realised. He pledge himself to the loyalty of our past culture, to the service of totality of country’s culture, to work fir its strength and progress and welfare fo its people.

(c) Why does Lomov think that his is a critical age?
Answer:
I have to start leading a steady and regular life. I love got a heart condition, with palpitations all time.

(d) Why did the speaker like the snake?
Answer:
The speaker liked the snake because it looks so innocent. It didn’t show any type of harm to a man. It just came there to drink water.

(e) Why is Macavity termed a ‘criminal’?
Answer:
Macavity is termed as a criminal because he can defeat the law of the master.

(f) In what series does the Sun conspire with autumn?
Answer:
The sun conspires with the autumn so slightly and as a friend. It’s ray makes the fruit fleshy and fat and also tasty.

(g) Why are the Indians quick learners of English?
Answer:
English is a globel language. So Indians are quick lernefs of English for their bright future.

(h) What is meant by the Great Vowel Shift?
Answer:
The Great Vowel Shift was a series of changes in the pronunciation of the English language that took place primarily between 1350 and the 1600s and 1700s, beginning in southern England and today having influenced effectively all dialectts of English.

Through this vowel shift, all Middle English long vowels changed their pronunciation. Some consonant sounds changed as well, particulary those that became silent; the term Great Vowel Shift is sometimes used to include these consonant changes.

English spelling was first becoming standardized in the 15th and 16th centuries and the Great Vowel Shift is responsible for the fact that English spellings now often considerably deviate in their representation of English pronunciations. (3) The Great Vowel Shift was first studied by Otto Jespersn (1860-1943), a Danish linguist and Anglicist, who coined the term

(I) What does the poet observe in summer in ‘Song of Myself?
Answer:
He observes a spear in summer.

(j) How did language play a role in human development?
Answer:
Yes, language played a role in human development. At what stage language began is not known, but we may be pretty certain that it began very gradually .Without it would have been very difficult to hands on from generation to generation the inventions and discoveries that were gradually made.

Question 6.
Answer any three in about 100-120 words

(a) Write the summary of any one o f the following poems :
(i) The soldier
(ii) Fire-Hymn
(iii) My Grand Mother’s House
Answer:
(i) The soldier:
“The soldier” is composed by the poet Rupert Booke who was the handsomest young man in England. The poet is saying that when he should die only think that there should be a comer of a field on the earth is hidden from dust. When the war started the dust starts to hid everything and was washed away by the rivers. When was started he wanted a flower which gave love without knowing the definite way where is to go. He always contact with English air of England. He was walking thinking about quarrel war.

He thought himself that nor a evil word came in his mind. A small vibration touched his mind as it lasting for ever. He wanted a peaceful country, it’s his dream and always see this type of sight that there are no wars between two countries. Everyone live a peaceful life. It seemed like a heaven in England to think over it.

(ii) Fire-Hymn:
The poem ‘Fire Hymn’ is highly composed by the poet Keki N. Daruwalla who is the reapient of Sahitya Akademi. His poetry in his own wards. In this poetry he tells is about a ghat which was burning. The ghat was totally burnt but to some extant it was half. Red, light showed their way. The sky seemed like a red ball. The sky is full of smoke which come out from the fire. Many animals were killed and some of then are half cooked. The somke swallour everything and at last leaves ah, which was grey colour,

The poet says that he will never forget this fire, today after twenty five years when he was bom. He say in a praise song that he stand forgiven. He swore that time to save it from the sin of forgiving. He did the things, I mean did mistake, so he was saying to forgive. The poet also show his half burnt fingers. This was the fire which destroy everything.

(iii) My Grand Mother’s House:
The poet of the poem “My Grandmother’s House” is a wonderful creation by “Kamala Das” has written about her grandmother’s house.She also used to live with her grandmother’s in that house, When she was young the house when she was so beautiful where she and her grandmother live a very happy life.

Everything is round that house is good. But when her grandmother died and the speaker lived in other places, the house became so bad condition. Everywhere round that house became pitable. Bushes grew around if when the speaker went there to see the house.

When she reached there she recieved earlier love. She saw her house damage. A strong feeling caught her mind. Everything was changed when she was there but still she was proudly because she reached there and recived loved which she begged at stranger’s door. In this poem, Kamala Das, the speaker told ther bio autography that how she lived when she was too young.

(b) Write the summary of any one :
(i) How Free is the Press
(ii) The Earth
(iii) Indian Through A traveller’s Eye
Answer:
(i) How Free is the Press:
That without a free press there can be no free people is things that al free people take for granted, we need not discuss it. Nor will we at this moment discuss the restrictions placed upon the press in time of war. At such Times all liberties have to be restricted, free people must see to it that when peace comes full freedom is restored in the meantime, it may Be wholesome to consider what that freedom is, and how far it is truly destraple.

It may trun out to be no freedom at all, or even a more freedom to tyrannies, for tyramnny is fact, the uncontrolled freedom of one man, or one gang, to impose its will on the world. When we speak of the freedom of the preass, we useally mens freedom in a very techincal and restricted sense- namely, Freedom from direction or cencership by the government. In this respect, the British press is under ordinary conditions.

Singulary free. lt can attack the policy and political charactor of minister interfere in the delicate machinery of foreign deplomacy,conduct campaigns to subject the constitution incite citizens to discontent and rebellion, expose scadals and foment grievance, and generally harry and behabour the servants of the state.

With alomost perfect liberty on occasion, it can become a weapon to coerce the government to conform to what it asserts to be the will of the people. So far, this is all to the good. Occasionally, this freedom may. Produce disastrous heistions and inconsistenceies in public policy, or tend to hemper the suift execution of emergency measures, but generally speaking it works to secure and sustain that central doctive o f Democracy as we understand it-that the state is not the master but the servant of the people. The press as a whole, and in technical and restrict sense, is thus pretty free in a peaceful Britain.

There is no shade of political opinnion that does not some how contrive to express itself. But if we go on to imagine that any particular organ of the press enjoys the larger liberty of being a forum of public opinic opinion, we are gravely mistaken. Every Newspaper is shacked to its own set of overloads and in its turn, like the ummerciful sarvant, exercise a power ful bondage upon its readers and one the public generally inded we may say that the heaviest restriction upon the freedom of public opinion is not the official censorship of the press but the unffcial cenforship by a press which exists not so much to express opinion as to manufacture it.

(ii) The Earth:
All that the Johnson had was the earth-very often it seemed as if it were all they had ever had.
It was true that they also had possessions-a plough, a two-wheeled cart, tools, a bony brown mare which slowly dragged the plough and the cart about their rough four- acre plot-but without the earth these things were useless. It was ture that they also had a son.

It was more than thirty years since the Johansons, realising that he was not quite like others, had taken Benjy to a doctor. This doctor had persuaded them that he needed interests that would stregthen his mind. It would be good if they gave him something to do, some occupation, which would help his development. It would help a great deal if they gave him a special interest to feed him sense of responsibility, you are people on the land, the doctor said, let him keep hens.

So for many years Benjy had kept hens, and what the earth was to him mother and father the hens were to Benjy they were almost all he had. When he came from school, cut off by his simplicity form other children, Benjy went straight home to his hens, which He kept in a wire coop that his father had made at the back of the house. At first he kept Ten or a dozen hens, all colours and breeds, brown and specked and black and white, and the coop was small. He fed the hens simply, on scraps from the table, seeded cabbages strung from the write, a -little maize, and on corn-ears which be gleand in the late summer from his father a ocre of stuble.

It is possible that a hen, being a simple creature thrives best on simple treatment. Benjy understood the First as last thi ng about a hen. That it exists for nor had it become highly complicated and commercialilized. Eggs were cheap, hens mysteriously pecked Nourishment off the bore earth. They sat in a home made Nesting-box, on straw, and Laid the eggs expected of then.

(iii) Indian Through A traveller’s Eye:
India had always been part of the background of my life, but I had never seen it whole and for myself until new. Yet the stories that our Indian family doctor and his wife told me when I was child had woven themselves into my growing dreams, and I had long read everything that I could find about that country-from my father I had learned of it through Budhhisam and the life history of the Lord Buddha. What did I go to India to see? Not the Taj Mahal, although I did see it and by moonlight, not Fatehpur Sikri, although I did see it, and not the glories of emprie in New Delhi, although I did see them. I want to India to see and listen to two groups of people, the young intellectuals in
the cities and the peasants in the villages.

These I met in little rooms in the city, in littile houses in the villages, and I heard their plans for freedom. Already the interllectuals believed that another world war was inevitable. They had been bitterly disappointed after the first world war by what they felt were the broken promises of England. The English, they declared, had no real purpose to restore India to the people. I could believe it fresh as I was from China. Where the period of people’s Tutelage seemed endless and self government further off every year.

‘When you are ready for independece, conquerors have always said to their subjects, etcetera ! But who is to decide when that moment comes and how can people learn to govern themselves except by doing it? So the intellectuals in india were Restless and embittered, and I sat though hours watching their plashing dark eyes and.

(c) Write a note on American English.
Answer:
English is the most widely spoken language in the United States and is the common language used by the federal government, to the extent that all laws and compulsory education are practiced in English. Although not an officially established language of the whole country. English is considered the defacto language and is given official status by 32 of the 50 state governments.

As an example, while both Spanish and English have equivalent status in the local courts of Puerto Rico, under federal law, English is the official language for any matters being referred to the United States district court for the territory.

The use of English in the United States is a result of English and British colonization of the Americas. The first wave of English-speaking settlers arrived in North America during the 17th century, followed by further migrations in the 18th and 19the centuries. Since then, American English has developed into new dialects, in some cases under the influence of West African and native American languages. German, Dutch, Irish, Spanish, and other languages of successive waves of immigrants to the United States.

(d) Write a note on the dialects of Middle English.
Answer:
The dialectal position of Middle English is basically a continuation of that of Old English. The most important extralinguistic fact for the development of the Middle English dialects is that the capital of the country was moved from Winchester (in the Old English period) to London by-William the Conqueror in his attempt to diminish the political influence of the native English.

NORTHERN This dialect is the continuation of the North umbrian variant of Old English. Note that by Middle English ti mes English had spread to (Lowland) Scotland and indeed led to a certain literary tradition developing there at the end of the Middle English period which has been continued up to the present time (with certain breaks, admittedly). Characteristice. Velar stops are retained (i.e. not palatalised) as can be seen in word pairs like rigg/ridge; kirk/church.

KENTISH This is the most direct continuation of an Old English dialect and has more or less the same geographical distribution. Characteristics. The two most notable features of Kentish are (1) the existence of / e:/ for Middle English /i:/ and (2) socalled “initial softening” which caused fricatives in word-initial position to be pronounced voiced as in vat, vane and vixen (female fox).

SOUTHERN West Saxon is the forerunner of this dialect of Middle English. Note that the area covered in the Middle English period is greater than in the Old English period as inroads were made into Celtic-speaking Cornwall. This area becomes linguistically uninteresting in the Middle English period. It shares some features of both Kentish and West Midland dialects.

WEST MIDLAND This is the most conservative of the dialect areas in the Middle English period and is fairly well-documented in literary works. It is the western half pf the Old English dialect area Mercia.

EAST MIDLAND This is the dialect out of which the later standard developed. To be precise the standard arose out of the London dialect of the late Middle English period. Note that the London dialect naturally developed into what is called Cockney today while the standard became less and less characteristic of a certain area and finally (after the 19th century) became the sociologist which is termed Received Pronunciation.
Characteristics. In general those of the late embryonic Middle English standard.

(E) Write a note on the Future of English
Answer:
Many people think that the teaching of English is playing havoc with our native regional languages. Even the protagonists of Hindi, our national language, are deadly opposed to it. They think that English is a foreign language and an average Indian can neither understand it. nor express himself in it. Moreover much energy of a child is bei ng wasted in the learning of English. So English should altogether be abolished from this land. Quite opposed to this camp are the phil-Anglians. They believe that English has been in use in India for the last about two centuries. As such, English is no longer a foreign language. Innumerbable words of English are being used in our language of daily use. Particularly in the South, the people prefer English to Hindi.

No doubt, English is a international language. Most of the research work in science and technology in the world is being done through the medium of English. English is the window for westen knowledge to India. A very poor country as India is, it is very difficult to translate all the latest knowledge into national and regional languages. Even if an effort is made in this respect, till the knowledge concerned is translated, the theroy has since changed meanwhile, That is why even countries like China and japan have started giving more attention to the study of English to get the latest knowledge.

It is also argued that our freedom fighters like M.K. Gandhi, JPL. Nehru, Cochlea etc. were greatly influenced by western political thought on freedom through a study of English philosophers, thinkers ans poets. English is said to be a great link between different Indian languages and a strong bond for national integration.

(F) Match the poets is list A with their works in List B

Answer:

(G) Translate any five of the following sentences in English

1. क्या तुम उसे पहचानते हो?
   
2. ये बच्चे रोज शतरंज खेलते हैं।
   
3. सुबह से बारिश हो रही है।
   
4. क्या तुम मुझसे नाराज हो?
   
5. यह उसकी कमीज है।
   
6. हमारी कक्षा में पचास लड़के हैं।
   
7. मैं फैसला कर चुका हूँ।
   
8. उसने मुझे पैसे देने से इन्कार कर दिया।

Answer:

1. Do you know him?
2. These children play chess daily.
3. It is rainy since morning.
4. Are you angry with me?
5. This shirt belongs to him.
6. There are fifty student in our class.
7. I have decided.
8. He refuse to give me money.

Question 7.
Answer either of following

Read the passage and answer the questions that follow :
Native American Indian groups in North American lived in different cultural regions, each of which developed its own customs and traditions. A custom is the specific way in which a group of people do something.This can include how foods are prepared, what clothing is worm, the kinds of celebrations and much more. The set customs developed and shared by a culture over time is a traditions.

1. What is a tradition ?
2. What is a custom?
3. How did the Native American Indian groups live in North American.
4. Make sentences with – Develop, Tradition.

Answer:

1. The set of customs developed and shared by culture over time is a tradition.
2. A custom is the specific way in which a group of people do something.
3. Native American Indian groups in North American lived in different cultural regions and each of developed its own custom and tradition.
4. Develop – He has developed a good skill. Tradition – Indian tradition is different from western tradition.

(OR)

Write a precis of the following passage and give a suitable title;
Education ought to teach us how to be love always and what to be in love with. The great things of history have been done by the great lovers, saints, men of science and artist, and the problem of civilization is to give every man a chance of being a saint, a man of science or an artist. But this problem cannot be solved unless men desire to be saints, men of science and artist. And if they are to desire that continuously, they must be taught what it means to be these things. .
Answer:
Title – Love
Education must teach us main objects to love. The great loves, scaints, men of science and artist is to give every one a chance of being saint, a man of science or an artist and must taught it.