Prasanna

Kerala Plus One Business Studies Model Question Paper 2

General Instructions

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give provided wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer the following questions from 1 to 9. Each carries 1 score.

Question 1.
Which of the following does not characteristics of business activity?

a. Production of goods

b. Presence of risk
c. Sale or exchange of goods and services

d. Salary or wages

Question 2.
Place utility is created by ………..

a. Transportation
ഗതാഗതം
b. Insurance

c. persons

d. warehousing
വെയർഹൗസിംഗ്

Question 3.
Social responsibility is

a. Same as legal responsibility

b. Broader than legal responsibility

c. Narrower than legal responsibility

d. None of them

Question 4.
Which among the following banks provide financial assistance, particularly to small business?

a. IDBI
b. ICICI
c. SIDBI
d.IFC

Question 5.
Which of the following documents is not required in connection with an import transaction?

a. Bill of lading

b. shipping bill

c. Certificate of origin
d. Shipment advice

Question 6.
Find the odd one from the following?

a. Huge financial resources

b. Limited liability

c. Compulsory registration

d. Voluntary membership

Question 7.
Which of the form of public sector enterprises is most suitable when national security is concerned?

Question 8.
Which plastic card enables you to buy things even if there is no balance in your account?

a. ATM card
b. Credit card
c. Debit card
d. Kisan card

Question 9.
ADRs are issued in

a. Canada
b. China
c. India
d. USA

Answer any 6 questions from 10 to 16. Each carries 2 scores.

Question 10.
What preferential rights are enjoyed by preference shareholders, explain?

Question 11.
a. Adv. Paul is practicing in the high court.
b. Adv. Rajeev Menon is working as the legal advisor of Karthikaconsultancy Ltd. in which economic activities these two are engaged in explaining both activities with the help of one example.

Question 12.
Compare the status of minor in joint Hindu family business with that in a partnership firm.

Question 13.
This service helps to reduce the impact of loss likely to be caused by uncertain events in business.
a. Identify the name of the service.
b. Write any two principles related to such services.

Question 14.
Explain the concept of outsourcing with the help of an example.

Question 15.
Explain the meaning of mate’s receipt.

Question 16.
“Look after your customers and the rest will follow”. In the light of the above statement, mention any two responsibility of a business firm towards its customers.

Answer any 4 questions from 17 to 21. Each carries 3 scores.

Question 17.
“Social responsibility and business ethics are the two sides of the same coin.” Being a commerce student as well as a citizen, how will you comment on this statement?

Question 18.
Classify the following into public bank, a private bank and foreign bank IDBI, HDFC, HSFC, CITI Bank, AXIS Bank, Canara Bank.

Question 19.
Write any three online payment mechanisms.

Question 20.
Prepare a short note on a different type of promoters.

Question 21.
An Indian company can now raise funds not only from India but also through foreign equity participation. How is it possible? Explain.

Answer the following questions which carry 4 scores.

Question 22.
Match the following:

Answer any 3 questions from 23 to 26. Each carries 4 scores.

Question 23.
What you mean by plowing back of profit. Explain its merits and demerits.

Question 24.
Identify the forms of business organization on the basis of the following definitions.

a. It refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risk.

b. It is a voluntary association of persons, who join together with the motive of the welfare of the members.

c. The management and control of the affairs of the company are undertaken by the board of directors.

d. It is the relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all.

Question 25.
Mr.George is a planter and trader of spices in Idukki. In the global spices meet held at Kochi, he got an order to export spices to the UK. But he is not aware of the export formalities. Support Mr. George by listing any four steps of the export procedure.

Question 26.
Distinguish between:

1. Equity shares & Preference shares
   
2. Shares & debentures
   

Answer any 3 questions from 27 to 30. Each carries 5 scores.

Question 27.
Explain the scope of international business.

Question 28.
For the smooth conducting of insurance, the insurer and the insured should know the relevant principles underlying the insurance contracts. In light of this statement, can you explain these principles?

Question 29.
A group discussion is scheduled in your class on “ Environmental Pollution and Business.” As a group leader, explain any four major causes of environmental pollution.

Question 30.
Nowadays banking activities can be done even after or before the banking hours. Name the type of service offered by banks in the above context. What are its advantages,

Answer any 2 questions from 31 to 33. Each carries 8 scores.

Question 31.
Explain the merits and demerits of a joint stock company.

Question 32.
Ethical business behavior improves public image, earns public confidence and leads to a greater volume of business. Discuss how a business enterprise can attain their benefits by fostering ethics in their day to day functioning.

Question 33.
These types of shares do not enjoy any preferential rights. The owners of such type of shares the real masters.” Identify these type of shares and explain their merits and demerits.

Answers

Answer 1.
d. Salary or wages

Answer 2.
Transportation

Answer 3.
Broader than legal responsibility

Answer 5.
b. Shipping bill

Answer 6.
a. Huge financial resources

Answer 7.
Departmental undertaking

Answer 8.
Credit card

Answer 9.
USA

Answer 10.
The preference shareholders enjoy a preferential right over equity shareholders in two ways:

• Right to get a fixed rate of dividend,
• Right to claim repayment of capital in the event of winding up of the company.
  

Answer 11.
Adv. Paul- profession
Eg; CA. a sinker is practicing in a CA firm Adv. Rajeev Menon- employment.
Eg; CA. panicker is working as the tax consultant of Samconsultancy ltd.

Answer 12.
A person becomes a member of a joint Hindu family business when he takes birth in such a family. All minors in the family are co-parceners in the family business. A partnership is based on a legal contract between partners. Since the minor is incompetent for entering to a valid contract, minor cannot be a partner of a partnership firm, but minor can be appointed as a beneficiary of the partnership firm.

Answer 13.
a. Insurance
b. Proximate causes
When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim.

Subrogation:
After the insured is compensated for the loss or damage to the property in­sured, the right of ownership of such property passes on to the insurer.

Answer 14.
Outsourcing
BPO (Business Process Outsourcing) is a system of getting business task accom­plished through an outside agency. Eg, transportation of raw materials into the fac­tory may be entrusted to a transport com­pany.

Answer 15.
A mate receipt issued by the commanding officer of the ship when the cargo is loaded on board, and contains the information about the name of the vessel, birth, date of shipment, description of packages, make and numbers, a condition of the cargo at the time of receipt on boar the ship, etc.

Answer 16.
Supply of right quality and quality of goods and services to consume are reasonable prices.

(b) They have the right of information about the product, price, the company etc.

Answer 17.
Business ethics and social responsibilities are closely related. When a business is ethical, it naturally meets its social responsibilities. It is doing justice to all concerned and protecting the business value system. As a socially responsible organization, a business has to follow ethical values towards employees, consumers, government, society etc. Thus social responsibility and business ethics are the two sides of the same coin.

Answer 18.

Answer 19.
a. Cash on Delivery here the payment is made at the time of physical delivery of goods.

b. Cheque here cheque is received and upon realization, the delivery of goods is made.

C. Net-banking transfer modern banking system provides the facility of electronic transfer of funds over the net to the customers.

Answer 20.
a. Professional promoters

They promote a company and hand it over to the shareholders.

b. Occasional promoters

They do promotional work as part of their business.

C. Entrepreneur promoter

They are promoters who conceive the idea of the business enterprise, perform professional activities and finally become part of management.

Answer 21.
Global Depository Receipts (GDR’s)

It is a negotiable instrument issued abroad by an Indian company to rais funds in foreign currency and it is traded on a foreign stock exchange. The local currency shares of a company delivered to depository bank the rafter depository bank issue depository receipts against these shares. Such depository receipts denominated in US dollars are known as GDRs. The holder of GDR can at any time convert it into number of shares it represents. They are entitled to dividend but do not carry any voting rights.

Answer 22.
Payment at the time of delivery – Cash on delivery
Exists in the space – Digital cash
Plastic Money – Credit/Debit card
Out Sourcing – Non core activities

Answer 23.
Ploughing back of profit is also known as retained earnings. A portion of net earnings which are not distributed to shareholders but are retained in the business for use in the future, known as retained earnings

Merits

It is a permanent source of funds available to an organization.

• No cost in the form of interest, dividend.
  
• Greater degree of operational freedom and flexibility
  
• It may lead to increase in the market price of the equity shares of a company.
  

Demerits

• It may cause dissatisfaction, among the shareholders as they would get a lower dividend.
  
• It is an uncertain source of funds as the profits of a business are fluctuating,
  
• It may attract government regulation.
  

Answer 24.
a. Sole proprietorship
b. Co-Operative Societies
c. Joint Stock Company
d. Partnership

Answer 25.
1. Obtaining importer’s, exporters code (IEC) Number

Importers exporters code number should be obtained first. This number should be shown in all export-import documents. Regional Import-Export Licensing Authority issues this number when applied for in the prescribed form.

2. Obtaining registration-cum-membership certificate (RCMC)

This certificate is issued by the Export Promotion Council / Commodity Boards / Federation of Indians Export Organisation / Marine Products Export Development Agency etc. This is needed to obtain facilities, benefits or concessions offered under the Export-Import policy (EXIM Policy). Application in the prescribed form along with the IEC should be submitted for obtaining this certificate.

3. Market Research :
The exporter tries to explore foreign markets by conducting surveys and market research to produce export order.

4. Receiving and confirming the export order

After receiving the export order the exporter gives the confirmation to the importer after careful scrutiny.

5. Manufacturing Goods :
The exporter then manufactures or procures the goods required by the importer. He should adhere to the specifications given by the importer of goods.

Answer 26.

Answer 27.
1. Merchandise exports and imports

Merchandise means goods which are tangible, i.e., those that can be seen and touched. Merchandise exports and imports involve tangible goods and exclude services (intangibles).

2. Service exports and imports

By service exports and imports we mean trade in intangibles, i.e., those that cannot be seen or touched. Because of this intangible nature, trade in services is also known as invisible trade.

3. Licensing and franchising
Permitting a person/ firm in a foreign country to produce and sell goods under your trademarks, patents or copyrights for a fee is another way of operating an international business. Franchising is somewhat similar to licensing with the difference that it is connected with the provision of services.

4. Foreign investments
Foreign investments mean investment abroad in exchange for financial return. Foreign investments can be Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI)

Answer 28.
Insurance

Insurance is an agreement between two parties whereby one party undertakes, in exchange for a consideration, to pay the other party an agreed sum of money to compensate the loss, damage or injury caused as a result of some unforeseen events.

A fundamental principle of insurance

The basic principle of insurance is that an individual or business concern chooses to spend a definitely huge amount involved in an indefinite future.

Principles of insurance

1. Utmost good faith

Both the insurer and the insured should display good faith towards each other in ..regard to the contract.

2. Insurable interest

The insured should have an insurable interest in the subject matter of insurance.

3. Indemnity

All the insurance contract except life insurance are a contract of indemnity.

4. Proximate causes

When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim,

5. Subrogation

After the insured is compensated for the loss or damage to the property insured, the right of ownership of such property passes on to the insurer.

6. Contribution
If the same property is insured with one or more insurer, in case, there is a loss, the insured have no right to recover more than the full amount of his actual loss. The insurers together have to share the losses.

7. Mitigation

This principle states that it is the duty of the insured to take reasonable steps to minimize the loss to the insured property.

Answer 29.
Causes Of Pollution

It must be recognized that all sectors of our society, industry, government, agriculture, mining, energy, transportation, construction, and consumers generate waste. Wastes contain pollutant which are the materials of chemicals that have been discarded during the process of production or consumption.

1. Air Pollution

Air pollution is the result of a combination of factors which lowers the air quality. It is mainly due to carbon monoxide emitted by automobiles which contribute to air pollution.

2. Water Pollution
Water becomes polluted primarily from chemical and waste dumping. For years business enterprises have been dumping waste into rivers. Streams and lakes with little regard for the consequences.

3. Land pollution

Dumping of toxic waste on land causes- land pollution. This damages the quality of land making it unfit for agriculture or plantation. Resting the quality of the land that has already been damaged is a big problem.

4. Noise Pollution

Noise caused by the running of factories and vehicles is not merely a source of annoyance but is also a serious health hazard. Noise pollution can be responsible for many diseases like loss of heaping malfunctioning of the heart and meant cal disorder.

Answer 30.
e-Banking

e-banking is electronic banking or banking using electronic media, e-banking is a service provided bank that allows a customer to conduct t ranking transactions such as checking accounts, applying for loans, or paying b; ills over the internet using a personal computer or mobile phone, e-banking indulge the following services.

Benefits

1. e-banking provides 24 hours, 365 days a year services to the customers of the bank
   
   
2. It lowers the transaction cost.
   
3. Customers can make the transactions from the office., home or while traveling.
   
4. Greater customer satisfaction.
   
5. e-banking, provides a competitive advantage to the bank.
   

Answer 31.
Joint Stock Company
A company is an artificial person having a separate legal entity, perpetual succession, and a Common seal. The capital of the Company is divided into smaller parts called shares which can be transferred freely. The share holder; are the owners of the company. Boar of directors is the managing body elected by share holders.

Merits

a. Limited liability

The shareholders are liable to the extent amount unpaid on the shares held, by them.

b. transfer of interest

Shares of a public company is freely transferable.

c. Perpetual existence

A company will continue to exist even if all the members die. A company being a creation of the law, can be brought to an end only by law.

d. Scope of expansion

A company has large financial Thus there is a greater scope of expansion

e. Professional management

A company can afford to pay higher salaries to specialists and professionals. This leads to balanced decision making and efficiency in the company’s operation.

Limitations

a. Complexity information

Its formation requires greater time.

b. Lack of secrecy

Since the company requires to publish audited accounts and reports, it is difficult to maintain secrecy about the operation of the company.

c. Impersonal work environment
It is difficult for owners and management to maintain personal contact with employees, customers, and creditors.

d. Numerous regulations

The functioning of a company is subject to many legal provisions and compulsion.

e. Delay in decision making

It takes an important decision by holding a meeting. So it takes much time.

f. Oligarchic management the board of directors enjoys considerable freedom in exercising their power which they sometimes ignore the interest of shareholders.

g. Conflicts in interest, there may be conflicts of interest among various stakeholders of the com, pan and it affects the smooth functioning of the company.

Answer 32.
Business Ethics
Ethics is the belief is what is right proper and just. It is to the socially determined moral principle which should give business activities. Business is the code of conduct followed and performed by the businessmen. Ethical business is good business. Ethical business behavior improves public image, earn peoples confidence and trust, and leads to greater success.

The concept of Business Ethics

The word ethics’ has its origin in the Greek word ethics’ meaning character norms, ideals, or morals prevailing in a group or society. Ethics may be viewed as the entire body of moral values that society attaches to the actions of human beings. Ethics can also refer to codes or another system for controlling means so that they serve human ends.

Elements of Business Ethics Since ethical business behavior is good for both the business enterprise and society it makes sense to discuss how the enterprises can faster ethics in their day-to-day working.

1. Top management commitment

Top management must give continuous leadership for developing and upholding the values of the organization.
2. Publication of a codes

The enterprise must develop a code containing a definite ethical programme. This generally covers areas such as honesty and adherence to laws, product safety and quality health and safety in the workplace and financial reporting.

3. Establishment of compliance mechanisms

Answer 33.
Equity shares
The money raised by equity shares is called equity share capital. It represents the ownership of a company. Equity shareholders do not enjoy preferential right in the matter of the claim of dividend or repayment of capital. They do not get a fixed dividend. They have the right to vote,

Merit

a. It is suitable for investors who are willing to assume the risk for higher returns

b. Payment dividend is not compulsory

c. It serves as permanent capital as it is to be repaid only at the liquidation of a com-

d. Equity shares do not create any charge on the assets of the company.

e. They have the right to vote and participate in the management.

Demerit

a. Not attractive to investors who prefer safety and fixed income.

b. An issue of additional equity shares dilutes the voting power and earning of existing equity shareholders.

c. The cost of issue of equity shares is generally more as compared to the cost of raising funds through other sources.

d. It involves more formalities and procedural delays.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Business Studies Model Question Paper 1

General Instructions

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give provided wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer the following questions from 1 to 7. Each carries 1 score.

Question 1.
Identify the type of business organization to which the registration is compulsory.
a. Sole proprietorship
b. Partnership business
c. Joint stock company
d. Hindu Undivided Family Business

Question 2.
Find the odd one from the following,
a. Banking
b. Mining
c. Warehousing
d. Advertising

Question 3.
Identify the type of warehouse where imported goods can be kept prior to the payment of duties and taxes.
a. Bond Warehouses
b. Government warehouses
c. Public Warehouses
d. Private warehouses

Question 4.
A business firm decided to help the affected people in Okhi cyclone. It belongs to the responsibility of the business.
a. Discretionary
b. Legal
c. Economic
d. Ethical

Question 5.
Which of the following is known as the birth certificate of a joint stock company?
a. Certificate of Incorporation
b. Memorandum of Association
c. Table A
d. Articles of Association

Question 6.
Fill up the series as per hint given:
a. Capital required for the day to day activities of the business working capital.
b. Capital required for acquisition of fixed assets…………..? ………………

Question 7.
The apex banking institution set up to promote agriculture and rural development in India is …………..

Question 8.
Buying and selling of goods and services within the geographical boundaries of a nation is
a. External trade
b. Internal trade
c. Entrepot trade
d. International trade

Question 9.
Identify the import document from the following
a. Letter of credit
b. Bill of lading
c. Bill of entry
d. Certificate of origin

Answer any 6 questions from 10 to 16. Each carries 2 scores.

Question 10.
Write any two merits of a government company.

Question 11.
Identify the type of E-business transaction referred to in the following cases.
a. A dealer in Kerala places an order through email to Marathi Udyog LTD. for a supply of 20 cars.
b. Ms. Anasooya placed an order for a smartphone through online.

Question 12.
Explain the concept of business ethics with the help of an example.

Question 13.
List out any two problems faced by a small-scale business of India.

Question 14.
Name any two products which are suitable for a vending machine.

Question 15.
Write a short note on export processing Zone.

Question 16.
Stae any two objectives of the small-scale business.

Answer any 4 questions from 17 to 21. Each carries 3 scores.

Question 17.
Identify the types of manufacturing industries mentioned below.
a. Production of cement by combining various ingredients like limestone, silicon etc.
b. Production of petrol, diesel, and kerosene from crude oil.
c. Manufacturing of computers using different components.

Question 18.
Explain any three features departmental undertakings.

Question 19.
List out any three differences between Memorandum of Association and Articles of Association.

Question 20.
Write any three ways in which a business organization can enter into international Business.

Question 21.
Explain any three schemes announced by the Government of Indian in Export-Import policy (EXIM policy) for the promotion of foreign trade.

Answer the following questions which carry 4 scores.

Question 22.
Match the following:

Answer any 3 questions from 23 to 26. Each carries 4 scores.

Question 23.
Identify the type of partners in the following cases:
a. Mr. Nirmal contributed Rs.l lakh as capital in Maithri Traders but do not participate in the day to day activities.
b. A well-known person allows Maithri Traders to use his name but doesn’t contribute capital or share profits.
c. Mr.Deepu pretends to be a partner in Maithri Traders, but actually, he is not.
d. Mr. Rajesh contributed Rs 1 lakh as capital in Maithri Traders and participate s in the conduct of business.

Question 24.
Write any four benefits of E-banking.

Question 25.
Classify the following into long term and short term sources of finance.
a. Factoring
b. Retained earnings
c. Preference Shares
d. Bank overdraft
e. Commercial papers
f. Debentures
g. Trade credits
h. Equity shares

Question 26.
“Outsourcing of non-core activities are beneficial to business units.”Do you agree? Comment on this statement by highlighting your views.

Answer any 3 questions from 27 to 30. Each carries 5 scores.

Question 27.
“Risk is an essential part of every business.” Explain its causes.

Question 28.
State any three responsibilities of business towards employees and any two towards consumers.

Question 29.
Who are promoters? Briefly explain any four functions performed by them.

Question 30.
Write any five advantage of equity shares as sources of finance.

Answer any 2 questions from 31 to 33. Each 4 carries 8 scores.

Question 31.
Identify the business organization formed voluntarily by a group of people for mutual benefits, Following the principle of “one man one vote”. Also, explain its four merits and three limitations.

Question 32.
Explain the major principles of insurance.

Question 33.
Explain any four services each rendered by wholesalers to manufactures as well as to the retailers.

Answers

Answer 1.
Joint Stock Company

Answer 2.
Mining

Answer 3.
Bonded Warehouses

Answer 4.
Discretionary

Answer 5.
Certificate of Incorporation

Answer 6.
Fixed capital requirement

Answer 7.
NABARD

Answer 8.
Internal trade

Answer 9.
Bill of entry

Answer 10.
1. A government company can be established by fulfilling the requirements of the Indian companies act.

2. It has a separate legal entity, apart from the government.

Answer 11.
a. B2B Transaction
b. B2C Transaction

Answer 12.
Business Ethics
Ethics is the belief is what is right proper and just. It is to the socially determined moral principle which should give business activities. Business is the code of conduct followed and performed by the businessmen. Ethical business is good business. Ethical business behavior improves public image, earn people’s confidence and trust, and leads to greater success.

Answer 13.
1. Finance

One of the severe problems faced by SSIs is that of non-availability of adequate finance to carry out its operations. Many of the units in the small sector lack the creditworthiness required to rise as capital from the capital markets.

2. Raw Materials
Another major problem of small business is the procurement of raw materials. If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials.

Answer 14.
Soft drinks, Chocolate

Answer 15.
Export Processing Zone

These are set up to increase production for exports. These are industrial estates which form enclaves within the national customs territory. They are usually located near the international airport or seaport. There are several export processing zones in India. They are

Answer 16.
1.Provide employment opportunity

They generate a number of employment opportunities per unit of capital invested compared to large industries.

2. Variety of Products

Small industries in our country supply an enormous variety of products which include mass consumption goods, readymade garments, hosiery goods, stationery items, soaps and detergents, domestic utensils, leather, plastic and rubber goods, processed foods and vegetables .wood and steel furniture, paints, varnishes, safety matches, etc

Answer 17.
a. Synthetical industry

b. Analytical industry

C. Assembling industry

Answer 18.
1. It is a large scale retail organization

2. It makes centralized purchasing

3. It is located in towns and cities

Answer 20.
1. Exporting and Importing

Export refers to the sending of goods and services for sale from the home country to foreign countries. Importing means purchasing of goods and services from foreign countries for domestic use. It is one of the methods to enter into International Business.

2. Contract Manufacturing.

It is a type of international business where a company enters into a contract with a local manufacturer in a foreign country. The contract is for getting certain components or goods produced as per specifications ‘ given. Contract manufacturing also called outsourcing can take the following three forms:

3. Licensing and Franchising

Licensing in international business is a contractual agreement in which one firm permits another firm in a foreign country to access its trademark, patents or technology for a fee called royalty. The firm which gives permission is called licensor and to whom it is given is called licensee. Franchising is somewhat similar to licensing.

The difference is that in the case former it is concerned with production and marketing of goods while franchising is connected with the provision of services. Franchising is relatively more stringent than licensing. The parent company is called the franchiser and the party to whom a franchise is granted is called the franchise.

Answer 21.
1. Export processing zones(EPZs)

EPZs have been set up to provide an internationally competitive duty-free environment for an expense. Govt has taken initiative to provide infrastructural facilities in these zones to produce goods at lower cost.

2. Cent percent export-oriented units

These units are set up for the export of the entire products. They can be set up anywhere in India. They get all the benefits provided to units in the EPZ

3. Special economic zones (SEZs)

It has been created to encourage free trade.
Its being treated as a deemed foreign territory for duty purposes. Goods going into the SEZs area from the domestic tariff area (DTA) are treated as deemed exports.

Answer 22.
a. Indian Railways Departmental undertaking
b. LIC of India Statutory corporation
c. BHEI Government company
d. Honda Ltd Multinational company
Answer 23.
a. Sleeping partner or dormant partner
b. Nominal partner
c. Partner by holding out
d. Active partner

Answer 24.
1. e-banking provides 24hours, 365 days a year services to the customers of the bank.

2. It lowers the transaction cost.

3. Customers can make the transactions from the office, home or while traveling.

4. Greater customer satisfaction.

Answer 25.
Long-Term Sources
Retained earnings Preference Shares Debentures Equity Shares
Short Term Sources
Factoring Bank overdraft Commercial paper Trade creditors

Answer 26.
I agree with this statement. BPO (Business Process Outsourcing is a system of getting a business task accomplished through an outside agency. Eg, transportation of raw materials into the factory may be entrusted to a transport company.

Following are the importance of outsourcing
1. Focusing on attention

Outsourcing benefits the organization by focusing on core areas and contracting out non-core business.

2. Quest for excellence

Outsourcing enables the firms to pursue excellence through a division of labor and specialization.

3. Cost reduction
It helps the organization to get an expert and specialize services at competitive prices. It helps in improved service and reduction in costs.

4. Growth through alliance

To the extent you can avail of the services of others, your investment requirements are reduced, others have invested for you. Therefore you can expand rapidly.

5. Fillip to economic development

Outsourcing helps in stimulating entrepreneurship, employment, and exports in the host countries. This will result in economic development.

Answer 27.
1. Natural Causes

it includes natural calamities like earthquake, flood, lightning, heavy rains, famine etc.

2. Human Causes
It includes dishonesty, carelessness negligence of employees, stoppage of work due to power failure, riots, management inefficiency etc.

3. Economic causes:
demand, change in price, competition, technological changes etc.

4. Other causes:

It includes political disturbances, fluctuation in exchange rates, a change in govt, policies etc.

Answer 28.
The responsibility of business towards employees

1. It is the social and moral responsibility of the business to pay reasonable wage and salaries to Employees.

2. They must be provided with good work I ing conditions security of the job, medical benefits etc.

3. Respect democratic rights of workers to form unions. The responsibility of business towards consumers

1. Supply of right quality and quantity of goods and services to consumers at reasonable prices, They have the right of information about the product, price, the company etc

2. Avoiding unfair trade practices

Answer 29.
A Person who undertakes to form a company and take necessary steps for the same are called promoter.

Following are the functions of a promoter.
1. Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity and analysis of the same.

2. Feasibility studies: After identifying a business opportunity, promoter undertakes detailed feasibility studies such as technical feasibility, financial feasibility & economic feasibility studies to determine the viability and profitability of the proposed business.

3. Name approval: After selection of a name for the company, the promoters submit an application to the registrar of companies for its approval the selected name should not be same or identical to the name of an existing company.

4. Fixing up signatories to the memorandum of association: Promoters have to decide about the members who will be signing the memorandum of association of the proposed company.

Answer 30.
Equity shares The money raised by equity shares is called equity share capital. It represents the ownership of a company. Equity shareholders do not enjoy preferential right in the matter of the claim of dividend or repayment of capital. They do not get a fixed dividend. They have the right to vote.

Merits

• It is suitable for investors who are willing to assume the risk for higher returns
  
• Payment dividend is not compulsory
  
• It serves as permanent capital as it is to be repaid only at the liquidation of a company.
  
• Equity shares do not create any charge on the assets of the company
  
• They have the right to vote and participate in the management.
  

Answer 31.
COOPERATIVE SOCIETY
The cooperative society is a voluntary association of persons, who join together with the motive of the welfare of the members. It is compulsorily required to be registered under the Co-operative Societies Act. 1912. At least ten persons required to form a society. The capital is raised from its members through an issue of shares.

Merits
a. Equality in voting status The principle of ‘one man one vote’ governs the cooperative society. Each member is entitled to equal voting rights.

b. Limited liability

The liability of the member of co-operative society is limited to the extent of their capital contribution.

C. Stable existence the retirement, death, insolvency or insanity of the members do not affect the continuity of a cooperative society.

d. Support from government

Cooperative society gets support from the government in the form of taxes, subsidies, and low-interest rates on loans.

limitations
a. Limited resources Resources of cooperative society consist of social capital contribution by members.

b. Inefficiency in management

Cooperative societies are unable to attract and employ expert managers because of their inability to pay them high salaries.

C. Lack of secrecy

As a result of an open discussion in the meeting.

Answer 32.
Insurance
Insurance is an agreement between two parties whereby one party undertakes, in exchange for a consideration, to pay the other party an agreed sum of money to compensate the loss, damage or injury caused as a result of some unforeseen events.

1. Utmost good faith

Both the insurer and the insured should display good faith towards each other in regard to the contract

2. Insurable interest

The insured should have an insurable interest in the subject matter of insurance.

3. Indemnity
All the insurance contract except life insurance are a contract of indemnity.

4. Proximate causes
When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim.

5. Subrogation
After the insured is compensated for the loss or damage to the property insured, the right of ownership of such property passes on to the insurer.

6. Contribution

If the same property is insured with one or more insurer, in case, there is a loss, the insured have no right to recover more than the full amount of his actual loss. The insurers together have to share the losses.

Answer 33.
1. Services to manufacturers;
a. Facilitate large-scale production;

Bulk orders from wholesalers enable the producers to undertake production on a large scale and take advantages of economies of scale,

b. Bearing risk

The wholesaler deals in goods in their own name and takes the risk of loss or damage in storage and transit.

C. Financial assistance
Wholesalers provide financial assistance to manufactures b means they make ready cash payment for purchases and even advance money to producers.

d. Expert advice

As wholesalers are in direct contact with retailers they provide useful information regarding customer taste and preference and market condition to manufacturers.

Services to retailers:

a. Availability of goods:

The wholesalers make the products of various manufacturers readily available to the retailers.

b. Marketing support:
The wholesalers perform various marketing functions and provide support to retailers.

C. Grant of credit

Wholesalers provide credit facilities to retailers.

d. Specialized knowledge:

The wholesalers specialize in one line of products and know the pulse of the market. So they offer expert advice to retailers.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Business Studies Improvement Question Paper 2018

General Instructions to candidates

• There is a ‘cool off-time’ of 15 minutes in addition to the writing time.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read the instructions carefully.
• Read the questions carefully before answering.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer the following questions from 1 to 7. Each carries 1 score.

Question 1.
Fill as per the hint is given.
a. Hindrance of place Transportation
b. Hindrance of place

Question 2.
TATA Ltd., purchases tires from MRF Ltd.
This is an example of.
a. B2C Commerce
b. C2C Commerce
c. Intra B Commerce
d. B2B Commercepops

Question 3.
Rules regarding Internal management of a company is mentioned in the
a. Memorandum of Association
b. Articles of Association
c. Prospectus
d. Certificate of incorporation

Question 4.
They are petty retailers who have independent shops of a temporary nature and change their business from one locality to another,
a. Peddlers
b. Street traders
c. Cheap jacks
d. Market traders

Question 5.
Identify the first step in the export procedure.
a. Receipt of inquiry and sending quotations
b. Obtaining export license
c. Receipt of order or indent
d. Production or procurement of goods

Question 6.
These are warehouses licensed by the Government to accept imported goods prior to payment of tax and customs duty.
a. Private warehouses
b. Public warehouses:
c. Government warehouses
d. Bonded warehouses

Question 7.
Access international, a computer training institute located in London, allows C-Tech Computer Education of India, to use their logo and name for a consideration, this is an example of
a. Contract manufacturing
b. Licensing
c. Franchising
d. Joint venture

Fill in the blanks. The question carries 2 scores.

Question 8.

Answer any 6 questions from 9 to 15. Each carries 2 scores.

Question 9.
‘Charging fair prices from customers’ is an example for business ethics. Give two more examples of business ethics.

Question 10.
Some business organizations outsource their debt collection to outside agencies. Name this arrangement. List one merit of it.

Question 11.
For providing support to small-scale units, the government has formed many supporting institutions. List out any two.

Question 12.
GAMA Traders get the orders through a post and they deliver the products through the mail. Identify the form of retail outlet mentioned here and also state an advantage of it.

Question 13.
Fill in the blanks

Question 14.
Coparceners are the members of HUF business. Who is the head of such a business? Comment on his liability.

Question 15.
Railways and Post and Telegram are the examples of this type of public sector undertakings. Identify the type of PSU and give two features of it.

Answer any 3 questions from 17 to 20. Each carries 3 scores.

Question 16.
It is an arrangement where the owner of an asset, grants the other party the right to use the asset, in return for a periodic payment.
a. Name the arrangement
b. Name the owner and user in this arrangement.

Answer any 3 questions from 17 to 20. Each carries 3 scores.

Question 17.
For the upliftment of small-scale sector, Government provides various incentives. Briefly explain any three of them.

Question 18.
I am my own boss, everything is under my control”. For which form of business organization the above statement is CORRECT? Give any two merits of such business.

Question 19.
Export Processing Zone(EPZ) is one of the measures of foreign trade promotion. Brei fly explains it with an example.

Question 20.
Identify the public sector undertaking created by the Indian Companies Act 1956. List any two merits of it.

Question 21.
Match the following.

Answer any 3 questions from question numbers 22 to 25. Each carries 4 scores.

Question 22.
List any four benefits of international business to our country.

Answer any 3 questions from 23 to 26. Each carries 4 scores.

Question 23.
Identify the type of partners in the following cases:
a. Mr. Nirmal contributed Rs.l lakh as capital in Maithri Traders but do not participate in the day to day activities.
b. A well-known person allows Maithri Traders to use his name but doesn’t contribute capital or share profits.
c. Mr.Deepu pretends to be a partner in Maithri Traders, but actually, he is not.
d. Mr. Rajesh contributed Rs 1 lakh as capital in Maithri Traders and participate s in the conduct of business.

Question 24.
Write any four benefits of E-banking.

Question 25.
Classify the following into long term and short term sources of finance.
a. Factoring
b. Retained earnings
c. Preference Shares
d. Bank overdraft
e. Commercial papers
f. Debentures
g. Trade credits
h. Equity shares

Question 26.
“Outsourcing of noncore activities are beneficial to business units.”Do you agree? Comment on this statement by highlighting your views.

Answer any 3 questions from 27 to 30. Each carries 5 scores.

Question 27.
“Risk is an essential part of every business.” Explain its causes

Question 28.
State any three responsibilities of business towards employees and any two towards consumers.

Question 29.
Who are promoters? Briefly explain any four functions performed by them.

Question 30.
Write any five advantage of equity shares as a source of finance.

Answer any 2 questions from 31 to 33. Each carries 8 scores.

Question 31.
Identify the business organization formed voluntarily by a group of people for mutual benefits, Following the principle of “one man one vote”. Also, explain its four merits and three limitations.

Question 32.
Explain the major principles of insurance.

Question 33.
Explain any four services each rendered by wholesalers to manufactures as well as to the retailers.

Answers

Answer 1.
Hindrance of risk Insurance

Answer 2.
B2B Commerce

Answer 3.
Articles of Association

Answer 4.
Cheap jacks

Answer 5.
Receipt of inquiry and sending quotations

Answer 6.
Bonded warehouses

Answer 7.
Franchising

Answer 8.
Extractive Industry Service Industry

Answer 9.
a. Using fair weights for measurement to from modities.
b. Giving fair treatment to workers
c. Earning reasonable profits
d. Lack of desired services and country to consumers
e. Misleading and dishonest advertising

Answer 10.
Factoring or Outsourcing / BPO Merits Outsourcing helps in stimulating entrepreneurship, employment, and exports in the host countries. This will result in economic development.

Answer 11.

1. NABARD
2. SIDBI

Answer 12.
Mail order business

it is a kind of retail business which receive and deliver the goods through the mail. Goods are delivered to customers only on making full payment for the same and the goods may be sent by value payable post (VPP).

Advantage

It requires only limited capital as it does not require heavy expenditure on building and other infrastructural facilities.

• Elimination of middlemen between the buyer and seller
  

Answer 13.

Answer 14.
Head of the business Karta Liability of Karta is unlimited.

Answer 15.
Departmental undertaking

This is the oldest form of organizing public sector enterprises. It may be run either by the central government or by the state government. They are managed by the government employees and works under the center of a minister.
Eg: Railway, Post and Telegraph etc.

1. They are financed from the government Treasury.
   
2. They are subject to accounting and audit controls applicable other government activities.
   
3. The employees of the enterprise are government servants.
   

Answer 16.
a. Leasing
b.
Owner – Lessor
User – Lessee

Answer 17.
Land

Every State offers developed plots for setting up of industries.

Power

Power is supplied at a concessional rate of 50 percent.

Water use
Water is supplied on a nonprofit, no loss basis or with 50 percent concession or exemption from water charges for a period of 5 years,

Sales Tax

In all union territories, industries are exempted from sales tax, while some states extend an exemption for 5 years period.

Answer 18.
SOLE PROPRIETORSHIP

Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risk. A sole proprietor is the one who is the only owner of a business.

Merits

• Quick decision
   
  a sole trader has full control over affairs of business, so he enjoys a considerable degree of freedom in decision making.
  
• Confidentiality of information
  
  A sole trader can keep all information related to business operations confidential and maintain secrecy.
  

Answer 19.
Export Processing Zone

These are set up to increase, production for exports. These are industrial estates which form enclaves within the national customs territory. They are usually located near the international air airport seaport. There are several export processing zones in India. They are

1. Kandla Export Processing Zone
   
   (KEPZ), Kanld a Gujarat.
2. Santa Cruz Electronic Export Processing Zone
   
   Bombay.
3. Noida Export Processing Zone
   
   (NEPZ), Noida, up.

Answer 20.
Government company

A government company is established under the Indian Companies Act, 1956 and is registered and governed by the provisions of the Indian Companies Act. According to the Indian Companies Act 1956, a government company means any company in which not less than 51 percent of the paid up capital is held by the central government, or partly by central government and partly by one or more state governments.

Merits

1. A government company can be established by fulfilling the requirements of the Indian companies act.
   
2. It has a separate legal entity, apart from the government.
   
3. It enjoys autonomy in decision making.
   

Answer 21.

Answer 22.
a. Earning of Foreign exchange
b. More efficient use of resources
c. Improving growth prospects and employment potentials
d. Increased standard of living

Answer 23.
1. Natural Causes

it includes natural calamities like earthquake, flood, lightning, heavy rains, famine etc.

2. Human Causes

It includes dishonesty, carelessness or negligence of employees, stoppage of work due to power failure, riots, management inefficiency etc.

3. Economic Causes
It includes changes in demand, change in price, competition, technological changes etc.

4. Other causes

It includes political disturbances, fluctuation in exchange rates, a change in govt, policies etc.

Answer 24.
Partnership deed

The written agreement which specifies the terms and conditions that govern the partnership is called the partnership deed.

The partnership deed generally includes the following aspects

1. Name Of firm
   
2. Nature of business and location of a business.
   
3. Duration of business
   
4. Investment made by The investmenter
   
5. Distribution of profits and losses
   
6. Duties and obligation of the partners
   
7. Salaries and withdrawal of the partners
   

Answer 25.
Joint Ventures

This is a very common mode of entering into international business. Joint venture means starting a firm which is jointly owned by two or more otherwise independent firms. A joint venture comes into being in three major ways:

• Increased resources and capacity
• Access to new markets
• Access to technology
• Innovation
• Low cost of production
• Established brand name

Answer 26.

Answer 27.
Outsourcing

“BPO (business Process Outsourcing) is a system of getting business tasa k accomplished through an outside agency. Eg, transportation of raw mate rials into the factory may be entrusted to a transport company.

Benefits of outsourcing
1. Focusing of attention

Outsourcing benfits the organization by focusing on core areas and contracting out non-core business.

2. Quest for excellence

Outsourcing enables the firms to pursue excellence through division of labour and specialization.

3. Cost reduction

It helps the organization to get an expert and specialize services at competitive prices. It helps in improved service and reduction in costs.

4. Growth through alliance

To the extent you can avail of the services of others, your investment requirements are reduced, others have invested for you. Therefore you can expand rapidly.

5. Fillip to economic development

Outsourcing helps in stimulating entrepreneurship, employment, and exports in the host countries. This will result in economic development.

Answer 28.
Arguments for Social Responsibility

1. A justification for existence and growth

Business exists for providing goods and services to satisfy human needs. Though profit motive is an important justification for undertaking a business activity.

2. The long-term interest of the firm

A firm and its image stand to gain maximum profits in the long run when it has its highest goal as service to society. When an increasing number of members of society, including workers, consumers, shareholders, government official feel that business enterprise is not serving its best interest, they will tend to withdraw their cooperation to the enterprise concerned.

3. Avoidance of government regulation

From the point of view of a business, government regulations are undesirable because they limit freedom. Therefore, it is believed that businessmen can avoid the problem of government regulations by voluntarily assuming social responsibilities. Which helps to reduce the need for new laws.

4. Maintenance of society

The argument here is that laws can not be passed for all possible circumstances. People who feel that they are not getting their due from the business may resort to anti-social activities, not necessarily governed by law.

5. Availability of resources with business

This argument holds that business institutions have valuable financial and human resources which can be effectively used for solving problems.

6. Converting problems into opportunities

Related with the preceding argument is the argument that business with its glorious history of converting risky situations into profitable deals, cannot only solve social problems but it can also make them effectively useful by accepting the challenge.

7. A better environment for doing business

If the business is to operate in a society which is full of diverse and complicated problems. It may have little chance of success. Therefore, it is argued that the business system should do something to meet needs before it is confronted with a situation when its own survival is endangered due to enormous social illnesses.

8. Holding business responsible for social problems

It is argued that some of the social problems have either been created or perpetuated by business enterprises themselves. Environmental pollution, unsafe workplaces, corruption in public institutions, and discriminatory practices in employment are some of these problems.

Arguments Against Social Responsibility

1. Violation of profit maximization objective

According to this argument, business exists only for profit maximization. Therefore any talk of social responsibility is against this objective.

2. Burden on consumers ”

It is argued that social responsibilities like pollution control and environmental protection are very costly and often require huge financial investments.

3. Lack of social skills

All social problems can not be solved the way business problems are solved. In fact, the businessman does not have the necessary understanding and training to solve social problems.

4. Lack of broad public support

Here the argument is that the public, in general, does not like business involvement or interference in social programs.

Debenture

A debenture is an instrument issued by company raising long-term debt capital, under its seal to acknowledge its debt. Debenture holders are creditors of the company. It bears a fixed rate of interest.

Merits

• Interest on debentures is a tax deduvtible expense.
  
• They guarantee a fixed rate of interest.
  
• Debentures are less costly as compared to a cost of preference shares.
  
• Debentures can be redeemed at any time when a company has surplus fund.
  
• They have no voting rights. So, control of management is not affected.
  

Answer 30.
1. Services to producers:
a. Facilitate large-scale production:

Bulk orders from wholesalers enable the producers to undertake production on a large scale and take advantages of economies of scale.

b. Bearing risk

The wholesaler deals in goods in its own name and take the risk of loss or damage in storage and transit.

C. Financial assistance

Wholesalers provide financial assistance to manufacturers means they make ready cash payment for purchases and „ even advance money to producers.

d. Expert advice aflracoGraoonjcrauoo

As wholesalers are in direct contact with retailers they provide useful information regarding customer taste and preference and market conditions to manufacturers.

e. Help in marketing function:
Functions of wholesalers relieve producers from many of the marketing activities and enable them to concentrate on the production activity.

f. Facilitate production continuity by purchasing the goods and when these are produced

g. Storage/warehousing of goods produced

2. Services to retailers:

a. Availability of goods:

The wholesalers make the products of various manufacturers readily available to the retailers.

b. Marketing support:

The wholesalers perform various marketing functions and provide support to retailers.

c. Gant of credit;

Wholesalers provide credit facilities to retailers.

d. Specialized knowledge:

The wholesalers specialize in one line of products and know the pulse of the market. So they offer expert advice to retailers.

e. Risk sharing

Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, obsolescence etc.

Answer 31.
Stages of formation

1. Promotion
   
2. Incorporation
   
3. Subscription of capital
   
4. Commencement of business
   

1. Promotion

Promotion is the initial stage in the formation of a company. Promotion simply means the sum total of all activities which are necessary for bringing the company into existence.

2. Incorporation

In the legal sense, a company comes into existence only after its incorporation. For this, an application accompanied by the following documents are to be prepared and filed with the registrar of companies with the prescribed fee by the promoters.

a. The memorandum of association duly stamped .signed and witnessed
b. Articles of association duly stamped, signed and witnessed
c. Written consent of the proposed directors
d. An agreement, if any, with proposed director
e. A copy of the registrars’ letter approving the name of the company
f. Statutory declaration
g. A notice about the extracted address of the registered office
h. Documentary evidence of payment of registration fees.

3. Capital subscription

A public company can raise funds from the public by issuing shares and debentures. For this, promoters have to take the following steps:

a. Obtain consent from SEBI.
b. File prospectus with a registrar of companies

c. Appointment of bankers, brokers, underwriters

d. Ensure that the minimum subscription is received

e. Application to a stock exchange for listing of companies securities

f. After making adjustment regarding application money received, issue allotment letters to successful applicant and file return of allotment with the registrar of companies.

4. Commencement of business

A public company raising funds from the public has to apply to the registrar of companies for the certificate of commencement of business along with the following documents.

1. A declaration about meeting minimum subscription requirement.

2. A declaration about details in respect of allotment to directors

3. A declaration about no money being payable to the applicant

4. A statutory declaration

A public company raising funds privately has to submit only documents 2 and 4 listed above.

The registrar, upon satisfaction, issues a certificate of commencement of business. It is also conclusive evidence that public company is legally entitled to do business.

Answer 32.
Life insurance

Life insurance may be defined as a contract in which the insurer, in consideration of a premium paid either in a lump sum or in periodical installments by the insured, undertakes to pay a certain sum of money either on the death of the insured or in the expiry a certain number of years.

Types of life insurance policies

1. Whole life policy

In this kind of policy, the insured has to pay premium throughout his lifetime and the assured sum become due for payment to the beneficiary only after the death of the insured.

2. Endowment life assurance policy

The insurance company undertakes to pay a specified sum when the insured attains a particular age or on his death whichever is earlier.

3. Joint life policy

This policy is taken up by two or more persons. The premium is paid jointly or by either of them in installments or lump sum.

4. Annuity policy

Under this policy, the assured sum is payable after the assured attains a certain age in monthly, quarterly, half yearly or annual installments.

5. Children’s endowment policy

This policy is taken by a person for is/her children to meet the expenses of their education or marriage.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Business Studies Previous Year Question Paper 2017

General Instructions

• There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give provided wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Question 1.
Which one of the following is NOT related to the general objectives of the business?
a. Innovation
b. Physical and financial resources
c. Warehousing
d. Productivity

Question 2.
The business operations in a Joint Hindu Family business is controlled by ……………….
a. partners
b. karta
c. co – parceners
d. shareholders

Question 3.
The government decided to sell the shares in the telecom department to the private sector. This is an example of ………………
a. disinvestment.
b. memorandum of undertaking
d. rehabilitation
c. reconstruction

Question 4.
……………….. are licensed by the government to accept imported goods prior to payment of tax and customs duty.
a. Cooperative warehouse
b. Private warehouse
c. Bonded warehoused
d. Government warehouse

Question 5.
Transportation removes the hindrance of ……………….. in trading activities.
a. place
b. time
c. risk
d. finance

Question 6.
Mrs. Usha purchased a smartphone from LG company through the internet is a ……………….. activity.

a. B2B
b. B2G
c. B2C
d. C2C

Question 7.
One of the following is against business ethics. Find it.
a. Charging a fair price for the product
b. Giving wages to employees if by not considering their workload
c. Using correct measurement for products
d. Giving chances to hear the problems of employees

Question 8.
If a Public Limited Company is NOT preparing the Article of Association, it can adopt ………………….

a. Table A
b. Table B
c. Table C
d. Table D

Question 9.
………………….. document shows the relationship of the company with outsiders.
a. Articles of Association
b. Memorandum of Association
c. Prospectus
d. Certificate of Incorporation

Question 10.
………………. is the link between wholesaler and customer.
a. Manufacturer
b. Supplier
c. Retailer
d. None of these

Question 11.
A receipt issued by the commanding officer of a ship when the cargo is loaded on the ship is known as ………………
a. shipping receipt
b. mates receipt
c. cargo receipt
d. charter receipt

Question 12.
Manufacturing and selling goods beyond the boundaries of one’s own country are called ………………
a. national business
b. international business
c. domestic business
d. none of these

Question 13.
Identify the form of business organization related to the following statements.
a. An artificial person created by law.
b. Association of persons with the motive of the welfare of members.

Question 14.
Write a short note on partnership deed.

Question 15.
What do you mean by Export Promotion Zones (EPZ)?

Question 16.
Correct the table given below, if there is a mistake.

Question 17.
Explain how the business units make land pollution.

Question 18.
“People work for others and get remuneration”.
a. Identify the economic activity involved in the above statement.
b. Write any two features of that economic activity.

Question 19.
AM Associates in India and C-Link Associates in Japan, two computer assembling firms, joined together and formed AMC Associates to do the same business.
a. Name the mode of international business mentioned above.
b. State any two advantages of such business.

Question 20.
Explain the causes of business risks.

Question 21.
Give a brief note about the social responsibility of business.

Question 22.
Write any three limitations of mail-order business.

Question 23.
a ………………. are also known as rural industries or traditional industries.
b. Write any three features of these industries.

Question 24.
Explain any four characteristics of a Government company.

Question 25.
‘Match column A with column B.

Question 26.
Ram and Rahim decided to start a mobile shop at Aluva.
a. Which form of business organization is suitable to them?
b. Explain different types of such organization.

Question 27.
The two main documents required for the formation of a company are Memorandum’of Association and Articles of Association. What are the differences between them?

Question 28.
Explain the features of departmental stores.

Question 29.
This service helps to reduce the impact of loss likely to be caused by uncertain events in a busi¬ness.
a. Identify the name of the service.
b. Explain the principles related to such services.

OR

a. Explain the different types of banks.
b. Explain the functions of commercial banks.

Question 30.
Explain the factors affecting the choice of business finance.

OR

What is meant by public deposits? Explain its merits and limitations as a source of finance.

Answers

Answer 1.
c. Warehousing

Answer 2.
b. karta

Answer 3.
a. Disinvestment

Answer 4.
c. Bonded warehouse

Answer 5.
a. place

Answer 6.
c. B2C

Answer 7.
b. Giving wages to employees by not considering their workload

Answer 8.
a. Table A

Answer 9.
b. Memorandum of Association

Answer 10.
c. Retailer

Answer 11.
b. Mates Receipt

Answer 12.
b. International business

Answer 13.
a. Joint stock company b. cooperative society

Answer 14.
The written agreement which specifies the terms and conditions that governs the partnership is called a partnership deed.

Answer 15.
Industrial estate, which forms enclaves from domestic tariff areas. Provide an internationally com petite ve duty-free environment for export production at low cost

Answer 16.

17. Land pollution
Dumping of toxic waste on land causes land pollution. This damages the quality of land making it unfit for agriculture or plantation. Restoring the quality of the land that has already been damaged is a big problem.

Answer 18.
a. Employment
b.

• There must exist an employer-employee relationship.
• Employees get a salary or wages for their services
• Regularity in service

Answer 19.
a. Joint ventures
b. It helps to execute large projects requiring huge capital outlays and manpower. The foreign business firms benefit from local partners knowledge of the host countries.

Answer 20.
Causes of Business Risks

1. Natural Causes:
   it includes natural calamities like earthquake, flood, lightning, heavy rains, famine etc.
2. Human Causes:
   It includes dishonesty, earless lessor negligence of employees, stoppage of work due to power failure, riots, management inefficiency etc.
3. Economic Causes:
   It includes changes in demand, change in price, competition, technological changes etc.
4. Other causes:
   it includes political disturbances, fluctuation in exchange rates, the change in govt, policies etc.

Answer 21.
Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of objectives and values of our society. Obligations to take those decisions and perform those actions which are desirable in terms of the objectives and values of the society. Respect the aspirations of the society and try best to contribute to the achievement of these aspirations. Voluntary action from the part of business units for the benefit of society. (Consider any meaningful explanation of the social responsibility of business)

Answer 22.

• Lack of personal contact
• High promotion cost.
• No after sale service
• No credit facility
• High dependence of postal service

Answer 23.
a. Cottage industries/village industries
b. Organized by individuals with Pvt resources, use family labor and locally available talent, small capital unit, equipment used is simple, produce simple products.

Answer 24.

• A government company can be established by fulfilling the requirements of the Indian companies act.
• It has a separate legal entity, apart from the government.
• It enjoys autonomy in decision making.
• These companies are able to control the market.

Answer 25.

Answer 26.
a. Partnership
b. Types of partnerships

I. Classification on the basis of duration

1. Partnership at will This type of partnership continue as long as the partners want a¬nd is terminated when any partners give notice of withdrawal from partnership to the firm
2. The particular partnership which is formed for the accomplishment of a particular project to be carried on over a specified period of time is called a particular partnership.

II. Classification on the basis of liability

1. General partnership In general partnership liability of partners is unlimited and joint Registrationoffirm is optional. Existe nee of a firm is affected by the death, insolvency or retirement of the partners.
2. Limited partnership In a limited partnership, the liability of at least one partner is unlimited whereas the rest may have limited liability. Registration of such a firm is compulsory. The existence of such a firm is not affected by the death, insolvency or retirement of the limited partners.

Answer 27.

Answer 28.
a. Provide all facilities such as restaurant, telephone booth etc
b. Located at a central place
c. started at large scale basis as the joint stock company
d. Combinesthefunctionsofretaining and warehousing
e. centralized purchasing and decentralized selling.

Answer 29.
a. Insurance
b. Insurance is an agreement between two parties whereby one party undertakes, in exchange for a consideration, to pay the other party an agreed sum of money to compensate the loss, damage or injury caused as a result of some unforeseen events.

• The agreement put in writing and is known as a policy.
• The person whose risk is insured is called insured.
• The firm which insurances the risk of loss is called insurer.

Fundamental principle of insurance

The basic principle of insurance is that an individual or business concern chooses to spend a definitely huge amount involved in an indefinite future.

OR

a. Types of banks

1. Commercial banks
Commercial banks are institution dealing in money, ie, accepting deposits and grant loans and advances to their customers, two types of commercial banks

• Public sector banks Those banks which are owned and managed by the government.
• Private sector banks  Those banks which are owned and managed by the private parties.

2. Co-operative banks
Cooperative banks are governed by the provisions of State Cooperative Societies Act on the principles of self-help and mutual help, self-help, and mutual help.

3. Specialized bank
Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks catering to specific needs of these unique activities.

4. Central bank
The central bank of any country supervises, controls and regulates the activities of all the commercial banks of that country.

b. Functions of commercial banks

1. Acceptance of deposits
The commercial bank accepts depo¬sits from the people. The different types of deposits are a current account, savings account and fixed deposits.

2. Lending of funds
The second major activity of commercial banks is to provide loans and advances out of the money received through deposits. These advances can be made in the form of overdrafts, cash credits, discounting trade bill etc.

3. Cheque facilty
It is the very important service which is provided the customers by this one can any time collect theircheques and drawn on other banks. There are two type of cheques mainly

• bear er cheque and
• crossed cheque.

4. Remittance of funds
Another function of a commercial bank is providing the facility of fund transfer from one place to another, on account of the interconnectivity of branches.

5. Allied services
Besides these, a bank also provides allied services such as bill payments, locker facility, underwriting services, buying and selling of shares and debentures on instruction etc.

Answer 30.
Cost The cost of procurement of funds & cost of utilising the funds should be taken into account while deciding about the source of funds that will be used by an organization.

• Financial strength & stability of operation
  In the choice of source of funds, business should be in a sound financial position so as to able to repay the principal amount and interest on the borrowed amount. When the earing of the organisation are not stable, It can issue equality shares to collect the fund.
• Form of organization & legal status
  The form of business organisation and status influence the choice of a source for raising money.
• Purpose & time period
  Business should plan according to the time period for which the funds are required. A short-term need can be net through borrowing funds at low rate of interest through trade credit, commercial paper etc. For long-term finance sources such as issue of shares and de- bentares are more appropriate
• Risk
  Business should evaluate each of the source of finance in terms of the risk involved.
• Control
  Business firm should choose a source keeping in mind the extent to which they are willing to share their control over business
• Flexibility
  Another aspect affecting the choice of a source of finance is the flexibility ease of obtaining funds

OR

Public deposit, the deposit\data raised by the organisation directly from the public are known public deposits rates of interest offered on public deposits are usually higher than those allowed by a commercial bank.
Demerits

• It may cause dissatisfaction amongst the shareholders as they would get a lower dividend.
• It is an uncertain source of funds as the profits of a business are flue tuating.
• It may attract government regulation.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Business Studies Previous Year Question Paper 2018

General Instructions to candidates

• There is a ‘cool off time’ of 15 minutes in addition to the writing time.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read the instructions carefully.
• Read the questions carefully before answering.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except nonprogrammable calculators are not allowed in the Examination Hall.

Answer all questions from question numbers 1 to 9. Each carries one score.

Question 1.
The broad classification of business activities includes and.
a. Trade and Auxiliaries to trade
b. Industry and Commerce
c. Industry and Traded
d. Internal Trade and External Trade

Question 2.
Which among the following is the main characteristic of Hindu Undivided Family Business?
a. Single ownership
b. Transfer of membership
c. Membership by birth
d. Registration is compulsory

Question 3.
VSAT (Very Small Aperture Terminal) is satellite-based…
a. rail transport service
b. communication service
c. banking service
d. air transport service

Question 4.
An apex bank set up in India to provide financial assistance to small business organizations is …………..

a. SIDBI
b. RSBDC
c. IDBI
d. IBRD

Question 5.
Identify the document issued by public companies to invite public to subscribe to its shares.
a. Prospectus
b. Memorandum of Association
c. Table A
d. Articles of Association

Question 6.
Fill in the series as per hint given:
a. Equity Shares Owned Capital
b. Debentures?

Question 7.
Which among the following is against bush ness ethics?
a. Using fair weights and measures
b. Fair treatment to workers
c. Earning reasonable profits
d. Charging unfair price

Question 8.
Find the odd one from the following:
a. Supermarkets
b. Multiple shops
c. Market traders
d. Mail order houses

Question 9.
Which cine of the following is NOT an export document?
a. Letter of credit
b. Bill of Lading
c. Bill of entry
d. Certificate of origin

Answer any five from question numbers 10 to 15. Each carries two scores.

Question 10.
Write any two social responsibilities of business towards consumers.

Question 11.
Suggest any two payment mechanisms used in e-Business.

Question 12.
‘A public sector undertaking formed by passing an Act in the Parliament’. Identify it. Give an example.

Question 13.
Write any two merits of retained earnings as a source of finance.

Question 14.
Differentiate the terms Licensing and Franchising in connection with the international business.

Question 15.
List any two services rendered by retailers to consumers.

Answer any six from question numbers 16 to 22. Each carries three scores.

Question 16.
Write any three differences between profession and Employment.

Question 17.
There are persons who assemble resources and undertake the necessary steps to form a company. Name such persons, Explain their legal position in the company.

Question 18.
Write any three differences between departmental undertakings and statutory corporations.

Question 19.
List out any three features of cottage industries.

Question 20.
A large retailing unit, selling a wide variety of consumer goods on low price and with a self-service concept. Identify it and mention any two advantages.

Question 21.
From the items given in brackets, choose the suitable mode of entry into international business for the following cases. (Joint venture, Contract manufacturing, Licensing)
a. Agreement with a manufacturer of a foreign country to get the products produced.
b. A contractual arrangement to access the patent or technology of a firm for producing goods in the foreign country.
c. Establishing a firm jointly with a foreign partner.

Question 22.
Briefly explain the objectives of the International Monetary Fund.

Answer the following question which carries four scores.

Question 23.
Match the following,

Answer any two from question numbers 24 to 26. Each carries four scores.

Question 24.
A Business Organization joins hands with the other one for mutual benefits.
a. Name the type of a business referred here.
b. Describe any three benefits of it.

Question 25.
Distinguish between goods and services.

Question 26.
Mithra opines that e-Business and e-Commerce are the same. Do you agree with her? Justify your answer.

Answer any three from question numbers 27 to 30. Each carries five scores.

Question 27.
Explain briefly the multiple objectives of a business.

Question 28.
Write notes on different kinds of social responsibilities of a business.

Question 29.
What is meant by Memorandum of Association? Explain any four clauses.

Question 30.
Describe the services rendered by wholesalers to the manufacturers.

Answer any two from question numbers 31 to 33. Each carries eight scores.

Question 31.
Mr. Mohammed. and Mr. Sajan entered into an agreement to start a business to share profits. Identify the form of business they decided to start. Explain its four merits and three limitations.

Question 32.
Explain the major functions of Commercial Banks In India.
 

Question 33.
Explain the various external sources of finance available for Joint Stock Companies in our country.

Answers

Answer 1.
b. Industry and Commerce

Answer 2.
c. Membership by birth

Answer 3.
b. Communication service

Answer 4.
a.SIDBI

Answer 5.
a. Prospectus

Answer 6.
Creditorship capital

Answer 7.
d.Charging unfair price

Answer 8.
Market traders

Answer 9.
a or c

Answer 10.

• Supply of the right quantity of goods.
• Supply of the right quantity of goods
• Supply of goods at reasonable pa rice.
• Free from adulteration, poor quality, misleading advt etc.

Answer 11.
Payment mechanism

Payment can be done in any of the following methods:

a. Cash on Delivery (CoD)

Here the payment is made at the time of physical delivery of goods.

b. Cheque: Here cheque is received and upon realization, the delivery goods are. made

c. Net-banking transfer

Modern banking system provides the facility of electronic transfer of funds over the net to the customers.

d. Creditor Debit card

They are popularly known as plastic money. Credit cards are issued by the bank, that allows the holder to make purchase on credit. The amount due from the cardholder to the online seller is assumed by the card issuing bank, who transfers the amount which is involved in the transaction.

The debit card also facilitate the process of payment as one can make a purchase through it to the extent of the amount lying in the persons own savings account.

e. Digital cash

This is a type of electronic currency that exists only in cyberspace. It has physical features but has the capability of using it as real currency in an electronic format.

Answer 12.
Statutory corporations.
e. g., LIC, RBI, SBI etc.

Answer 13.
Retained earnings (plowing back of profit)

A portion of net earnings which are not distributed to shareholders but are retained in the business for use in the future, known as retained earnings.

Merits

• It is a permanent source of funds available to an organization.
  
• No cost in the form of interest, dividend.
  
• A greater degree of operational freedom and flexibility.
  
• It may lead to an increase in the market price of the equity shares of a company
  

Answer 14.
Licensing and franchising

Permitting a person/ firm in a foreign country to produce and sell goods under your trademarks, patents or copyrights for a fee is another way of operating an international business. Franchising is somewhat similar to licensing with the difference that it is connected with the provision of services.

Answer 15.
a. Retailers maintain regular availability of various products produced by different manufacturers.

b. Retailers provide new products information to customers by arranging an effective display of products and through personal selling.

Answer 16.

Answer 17.
Licensing and franchising

Permitting a person/ firm in a foreign country to produce and sell goods under your trademarks, patents or copyrights for a fee is another way of operating an international business. Franchising is somewhat similar to licensing with the difference that it is connected with the provision of services.

Answer 18.
Departmental undertaking

1. The funding of these enterprises come directly from the Government Treasury and are an annual appropriation from the budget of the Government. The revenue earned by these is also paid into the treasury.
2. They are subject to accounting and audit controls applicable to other Government activities.
3. The employees of the enterprise are Government servants and their recruitment and conditions of service are the same as that of other employees directly under the Government. They are headed by Indian Administrative Service (IAS) officers and civil servants who are transferable from one ministry to another.

Statutory corporation

1. Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act. The Act defines the objects, powers, and privileges of a statutory corporation.
2. This type of organization is wholly owned by the state. The government has the! ultimate financial responsibility and has the power to appropriate its profits. At the same time, the state also has to bear the losses, if any.
3. A statutory corporation is a body

Answer 19.

• These are organized by individuals, with private resources
  
• Normally use family labor and locally available talent: the equipment used is simple
  
• Capital investment is small
  
• Produce simple products, normally in their own premises
  

Answer 20.
1. Supermarkets

it is a large scale retail organization deals in different kinds of consumer goods. A unique feature of the supermarket is the absence of salesmen to serve the consumer. It is also known as self-service stores.

Advantage

• They offer a wide variety of products at low cost under one roof.
  
• As they are located at a central location it results in a high turn over
  
• It provides wide selection facility
  
• No bad debts as goods are sold on a cash basis
  

Answer 21.
a. Contract manufacturing
b. Licencing
c. Joint Venture

Answer 22.
a. To promote international monetary cooperation.
b. To facilitate, expansion of balanced growth of international trade.
c. To promote exchange stability.

Answer 23.

Answer 24.
a. Joint ventures
b. It helps to execute large projects requiring huge capital outlays and manpower.
The foreign business firms benefit from local partners knowledge of the host countries.

Answer 25.

Answer 26.
I do not agree with her.
e-business may be defined as the conduct of industry, trade, and commerce using computer networks.

e-business is a broader term and e-commerce is a part of e-business, e-business includes all the electronically conducted business functions such as production, accounting, personnel etc.e-commerce is the buying and selling of goods and services over the internet.

Answer 27.
1. Market standing

It refers to the position of an enterprise in relation to its competitors.

2. Innovation

It is the introduction of new ideas or methods in the way something is done or made. It accelerates the growth of an enterprise.

3. Productivity
Productivity is ascertained by comparing the value of output with the value of the input. It is used as a measure of efficiency

4. Physical and financial resources:

The business must aim at maximum utilization of available physical and financial resources.

5. Earning profit
Earning maximum profit is the primary objective of every business. Profit is required for the survival and growth of a business.

6. Manager performance and development

Efficient managers are needed to conduct and coordinate business activities. Managers performance and development is also an important objective of business enterprises

7. Workers performance and attitude

Workers performance and attitude determine their contribution towards productivity and profitability of any enterprise. Every enterprise must aim at improving its workers performs nee.

8. Social responsibility

It refers to the obligation of a business firm to contribute resources to solving social problems and work in a socially desirable manner.

Answer 28.
a. Economic Responsibility

A business enterprise is basically an economic entity and therefore, its primary social responsibility economic produce goods and services that society wants and sell them at a profit.

b. Legal Responsibility

Every business has a responsibility to operate within the laws of the land. Since these laws are meant for the good of the society wants and sell them at a profit,

c. Ethical Responsibility

This includes the behavior of the firm that is expected by society but not codified in law.

d. Discretionary Responsibility

This refers to purely voluntary obligation that an enterprise assumes for instance providing charitable contribution to educational institutions or helping the affected people during floods or earthquakes.

Answer 29.
Memorandum of association is the charter or Magna Carta of the company. It is the fundamental document of the company. It defines the objects of the company and provides the framework beyond which the company cannot operate. Its purpose is to enable the shareholders, creditors, and others who deal with. the company to know the scope of the company’s operations. Contents of the memorandum clauses of a memorandum.

A Name clause

The name clause furnishes the name of the company. The name should not be identical with, or similar to, the name of an existing company. The name should not suggest any connection with or patronage of a national hero. The name must not directly or indirectly imply any participation of the central or state government. In case of a public company, the name should end with the word ‘limited’ and in case of a private company the name should end with the word ‘private limited’.

B. Registered office clause

This clause specifies the name of the state wherein which the registered of the company is proposed to be situated. Full address of the company must be filed with the registrar within 30days of incorporation of the company. It is also known as situation or domicile clause.

C. Object Clause

his is the most clause of the memorandum it defines a purpose for which the company is formed. A company is not legally/7 entitled to undertake an activity, which is yond the objects stated in this clause.

D. Liability clause

It states whether the liability of members is limited by shares or by guaranty.

E. Capital clause

This clause specifies the maximum capital which the company will be authorized sed to raise through the issue of shares,

F. Association Clause

This clause state that the subscriber express of their willingness and agreement to form a company.

Answer 30.
1. Services to manufacturers
a. Facilitate large-scale production

Bulk orders from wholesalers enable the producers to undertake production on a large scale and take advantages of economies of scale.

b. Bearing risk

The wholesaler deals in goods in their own name and takes the risk of loss or damage in storage and transit.

c. Financial assistance

Wholesalers provide financial assistance to manufactures b means they make ready cash payment for purchases and even advance money to producers.

d. Expert advice

As wholesalers are in direct contact with retailers they provide useful information regarding customer taste and preference and market condition t 0 manufacturers.

e. Help in marketing function:
Functions of wholesalers relieve producers from many of the marketing activities and enable them to concentrate on the production activity.

f. Facilitate production continuity by purchasing the goods and when these are produced

g. Storage/warehousing of goods produced

2. Services to retailers:

a. Availability of goods:

The wholesalers make the products’ of various manufacturers readily available to the retailers.

b. Marketing support:
The wholesalers perform various marketing functions and provide support to retailers.

c. Grant of credit

WhoJesalers provide credit facilities to retailers.

d. Specialized knowledge:

The wholesalers specialize in one line of products and know the pulse of the market. So they offer expert advice to retailers.

e. Risk sharing

Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, obsolescence etc.

Answer 31.
PARTNERSHIP

A partnership is a relation between persons who have agreed to share the profits of the business carried on by all or any one of them acting for all.

MERITS

• There is ease information as well as the closure of a business.
  
• Balanced decision making in partnership decision is taken by all partners.
  
• More funds In a partnership the capital is contributed by a number of partners.
  
• Sharing of risk like profit sharing losses also shared by partners.
  
• Secrecy Since partnership firm is not legal not required to publish its accounts and submits its reports, it can maintain the confidentiality of information relating to its operation.
  

LIMITATION

• Unlimited liability
  
  The partners of a firm have unlimited liability the partners are jointly and individually liable for payment of debts.
• Limited resources
  
  As there is a restriction on a number of members, capital contributed by them also limited.
• Possibility of conflicts
  
  A difference in opinion on some issues may lead to disputes between partners
• Lack of continuity
  
  The retirement death insolvency or insanity of any partner can bring an end to the business.
  
• Lack of public confidence
  Partnership firm is legally not required to publish its accounts and submits its reports, it results in a lack of public confidence in partnership.
  

Answer 32.
Functions of commercial banks

1. Acceptance of deposits

The commercial bank accepts deposits from the people. The different types of deposits area current account, savings account and fixed deposits.

2. Lending pf funds

ruemo Second major activity of commercial banks is to provide loans and advances out of the money received through deposits. These advances can be made in the form of overdrafts, cash credits, discounting trade bill etc.

3. Cheque facility

It is the very important service which is provided the customers by this one can any time collect theircheques and drawn on other banks. There are two type of cheques mainly a. bearer cheque and b. crossed cheque

4. Remittance of funds

Another function of commercial bankis pro-viding the facility of fund transfer from one place to another, on account of the interconnectivity of branches.

5. Allied services

Besides these, a bank also provides allied services such as bill payments, locker facility, underwriting services, buying and selling of shares and debentures on instruction etc.

Answer 33.
1. Retained earnings (ploughing back of profit)

A portion of net earnings which are not distributed to shareholders but are retained in the business for use in the future, known as retained earnings.

2. Trade credit

Trade credit is the credit extended by one trader to another for the purchase of goods and services. It is a short term source of finance.

3. Factoring

It is the method of converting book debts into cash. It is the practice of raising funds by selling firms accounts receivables to another agency called factor. Factor charges fees for the services rendered.

4. Lease financing

A lease is a contractual agreement whe-reby the owner of the asset (lessor grants the right to use the asset to a third party (lessee), in other words, it is ‘ rending of an asset for some specified period. The lessee has to pay a specified amount called lease rent to the lesser for the use of the asset,

5. Public deposit

The deposit data raised by the organization directly from the public are known public deposit rates of interest offered on public deposits are usually higher than those allowed by a commercial bank.

6. Commercial paper

It fs an unsecured promissory note issued by a firm to raise funds for a short period, ! varying from 90 days to 364 days rate of interest on a loan is fixed.

7. Issue of shares

The capital of a company is divided in to small units called shares. The capital obtained by issue of shares is known as share capital. The one who hold shares is called shareholder.

A. Equity shares
do not enjoy preferential right in the matter of the claim of dividend or repayment of capital. They do not get a fixed dividend. They have the right to vote.

B. Preference shares

Capital raised by the issue of preferenceshares is called preference share capital. The preference shareholders enjoy a preferential right over equity shareholders in two ways:

• Right to get a fixed rate of dividend,
• right to claim repayment of capital in the event of winding up of the company.

8. Debentures

Debenture is an instrument issued by com’ pany raising long term debt capital, under its seal to acknowledge its debt. Debenture holders are creditors of the company . It bears a fixed rate of interest.

9. Commercial Banks

Commercial banks provide loans and advances in the form of cash credit , over a draft, term loan, discounting of bill and letter of credit etc.

10. Financial Institutions

These are the institutions established by state and central government with the core objective of financing projects to bring rapid industrialization on a long term basis. It is also known as lending institution or development bank.

11. International financing

A. Commercial banks

Commercial banks all over the world extend foreign currency loans for business purposes.

B. International agencies and development banks

A number of international agencies and development banks are provide long and medium-term loans and grants to promote the development of economically backward areas in the world.

C. International capital markets

1. Global Depository Receipts (GDR’s)

It is a negotiable instrument issued abroad by an Indian company to raise funds in foreign currency and it is traded on a foreign stock exchange. The local currency shares : of a company delivered to depositary bank thereafter depository bank issue depository receipts against these shares. Such deposi-tory receipts denominated in US dollars are known as GDRs. The holder of GDR can at any time convert it into a number of shares it represents. They are entitled to the dividend but do not carry any voting rights

2. American Depository Receipts (ADR’s)

The depository receipts issued by a company in the USA are known as ADRs. It can be issued only to American citizens and can be listed and traded on a stock exchange in the USA.

3. Foreign currency convertible bonds (FCCB’s)

They are equity linked debt securities that are to be converted into equity or depository receipts after a specified period. The FCCB’s are issued in a foreign currency and carry a fixed interest rate. These are listed and traded in the foreign stock exchange and similar to the convertible debenture issued in India.

Plus One Business Studies Previous Year Question Papers and Answers

Kerala Plus One Accountancy Model Question Paper 4

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question numbers 1 to 9. Each carry one score.

Question 1.
When the drawee of the bill of exchange makes the payment before the maturity date of the bill is called
a. dishonour of the bill
b. discounting of bill
c. retiring of bill
d. renewal of bill

Question 2.
Fill in the blank with suitable data type on the basis of the hint given:
a. Name: Text
b. Birthdate:

Question 3.
Classify the following input devices and out­put devices

a. Optical pen
b. VDU (visual Display unit)
c. Printer
d. Smart card reader

Question 4.
Which one of the following principles of ac­counting helps to equate the assets of a firm with its liabilities?

a. Full disclosure principle
b. Duality principle
c. Matching principle
d. Cost principle

Question 5.
Tally is a……………..
a. Utility software
b. Application software
c. Operating system
d. Connecting software

Question 6.
When the debit of income and expenditure is more than its credit, it leaves a ………….

a. profit
b. surplus
c. deficit
d. loss

Question 7.
A bank reconciliation statement is prepared with the balance of……….

a. Passbook
b. Cashbook
c. Both pass book and cash book
d. None of these

Question 8.
The single entry system is also known as

a. Imprest system
b. Merchantite system
c. Incomplete system
d. Cash system

Question 9.
Which of the following is INCORRECT?
a. Assets = Liabilities + Capital
b. Liabilities=Assets – Capital
c. Capital = Assets – Liabilities
d. Liabilities = Assets + capital

Answer any five from question numbers 10 to 15. Each carries two scores.

Question 10.
Journal and ledger are two important books maintained in accounting.
a. State any two differences between these books.
b. Purchase office furniture for Rs. 500 by cheque. The account to be debited is

Question 11.
Mention two capabilities of a computer over human beings.

Question 12.
From the following information, ascertain the amount of debtors to be posted in the asset side of the Balance sheet.

Adjustments:
a. Provide 5% for further bad debts.
b. Create a provision for doubtful debts@ 10% on debtors.
c. Provision for discount on debtors is
to be created @ 10%.

Question 13.
In how many ways are assets classified? Mention these ways.

Question 14.
From the following transactions, identify the type of error.
a. Wages paid for making additions to machinery Rs 100 was debited to wages A/c.
b. Sales account was given an excess credit by Rs 1600 and at the same time, rent account was totaled shortly by Rs 1600.
c. A credit purchase of Rs 10000 from Manju Agencies was not recorded at all.
d. A credit sale of Rs 5000 was entered in the sales book as Rs 50000.

Question 15.
Rajanesh is a manager with great expertise in management and leading his firm very well. But his expertise does not find a place in the accounting records of the firm.
a. Is it genuine according to the rules of accounting?
b. State your answer with the reason.

Answer any three from question numbers 16 to 19 Each carries three scores.

Question 16.
Bank reconciliation statement is prepared to reconcile the cash book and pass book bal­ances on a certain date.
a. This statement is prepared by…
b. Write any one cause for the difference in pass book and cash book
c. Cash book of Tinu shows a bank bal­ances of Rs. 15,000. On comparing the cash book the following discrep­ancies were found.

1. Cheque issued to Deepa but not presented for payments of Rs. 1,000
2. Bank interest credited by the bank Rs.400
3. Divya, a customer directly deposi­ted Rs.4000 to firm’s bank account
4. Bank Charges Rs.100 not entered in the cash book.
   Prepare a bank reconciliation statement.

Question 17.
Ascertain the profit from the following:
Capital on 1^st January 2014   र 16000
Capital as on 31^st December 2014  र 17900
Drawings made during the year  र 4800
Capital introduced on 1st July 2014 र 2000

Question 18.
Rectify the following transactions of Baby stores during the year 2012-13.

1. Salary paid Rs 900 was recorded as Rs 90 only.
2. Furniture purchased on credit for Rs 20000 was recorded through cash book by mistake.
3. Wages worth Rs 40000 paid for con­struction of a car porch were debited to Wages A/c
4. Purchase book was cast short by Rs 900.

Question 19.
A firm decided to make provision for doubtful debts @ 10% on debtors for the year 2012-13. Name the relevant accounting principle applied here and explain.

Answer any two from question numbers 20 to 22. Each carries four scores.

Question 20.
Star Ltd. purchased machinery for Rs 290000 and spent Rs 10000 on its installation on 1^st April 2008. After using it for 3 years, it was sold for Rs 2,00,000 on March 31^st, 2011. Depreciation is to be provided at 10% on the fixed installment method.
a. Pass journal entry for recording the purchase of machinery.
b. Find the amount of profit/loss on sale of machinery assuming that the acco­unting year closes on 31^st March every year.

Question 21.
Krishna intends to create a table in Ms- Access. Suggest suitable data types for the following fields.

Question 22.
From the following particulars, prepare the bank reconciliation statement of Asha & Co. as on
31-03-2012.
a. Credit balance as per pass book is  Rs. 10,000
b. Bank collected a cheque of Rs. 500 on behalf of Asha & Co. but wrongly credited it to Asha’s account.
c. Bank recorded a cash book deposi­ted of Rs. 1589 &Rs. 1598.
d. Withdrawal column of the passbook under cost by Rs. 100
e. The credit balance of Rs. 1500 as on the passbook was recorded in the debit balance.
f. The payment of a cheque of Rs. 350 was recorded twice in the passbook.
g. The passbook showed a credit bala­nce for a cheque of Rs.1000 deposi­ted by Asha & Co.

Answer question numbers 23 and 24. Each car­ries five scores.

Question 23.
“Writing equation forms the basis of the accounting process”. Prove that the accounting equation is satisfied in all of the following transactions.
a. Suresh commenced business with cash RS 40000
b. Purchased goods on credit Rs 6500
c. Paid rent Rs 500
d. Sold goods costing Rs 6500 on credit for Rs 8000

Question 24.
Prepare a double column cash book from the following transactions for the month of January 2018.

Question 25.
Kiran a sole trader does not keep full records of books of accounts. However, the following information is available. You are required to calculate credit sales and credit purchases by preparing Total Debtors Account and Total Creditors Account. Also, show the Bills receivables A/c and Bills payable A/c.

Question 26.
Mr. Thomas keeps his books under the single entry system. On 1 st April 2013, his records indicated the following assets and liabilities,


During the year, he introduced Rs 15000 as further capital and withdrew Rs 400 every month. Calculate the profit or loss made by him during the year by using the statement of affairs method.

Question 27.
Mr. John, who does not follow the double-entry system gives you the following details for the period ended 31/12/2012.


loss account and the Balance Sheet as on 31/12/2012.

Answer

Answer 1.
c. retiring of bill

Answer 2.
Date / Time / Text

Answer 3.
Input devices – (a) & (d)
Output devices – (b) & (c)

Answer 4.
Duality principle

Answer 5.
Application software

Answer 6.
profit

Answer 7.
Both pass book and cash book

Answer 8.
Incomplete system

Answer 9.
Liabilities=Assets + capital

Answer 10.
(a)

b. Furniture A\C.

Answer 11.
1. Speed: A computer is able to process data at.a very high speed than that of a human being
2. Accuracy: It refers to the degree of exactness with which comp­utation are made and operations are performed.

Answer 12.

Answer 13.

Answer 14.
(a) Error of principle
(b) Error of compensating
(c) Error of omission
(d) Errors of commission
(e) Errors of omission

Answer 15.
(a) Yes.
(b) According to this concept, transactio­ns involving money or money’s worth will be recorded in the books of acco­unts. The transactions or events which cannot be expressed in monetary terms.

Answer 16.
(a) Customer/ Businessman/Account holder etc
(b) Cheque issued by the bank but not yet presented for payment.
(c) Bank Reconciliation Statement

Answer 17.

Answer 18.

Answer 19.
Principle of conservatism
According to this principle, all possible losses are to be provided for but incomes can be recognised only when there is a certainty.

Answer 20.
a. Machinery A/c Dr 300000
Cash/ Bank 300000
b. Ascertainment of Profit or Loss on Sale of Machinery

Answer 21.
a. No/Text
b. Text
c. Text
d. Text
e. No
f. Date/Time

Answer 22.

Answer 23.

Answer 24.

Answer 25.

Answer 26.

Answer 27.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Model Question Paper 3

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question numbers 1 to 9. Each carries one score.

Question 1.
The fact that a business is separated and distinguished from its owner is best exempli­fied by the concept.
a. money measurement
b. going concern
c. business entity
d. cost

Question 2.
In every organization, a large number of small payments of repetitive nature are there. To record these as a separate cash book is main­tained is called petty cash book. Name the person who prepares this book.

Question 3.
Consider the following fields of MS Access

Voucher
Voucher
No Voucher Name
Here, ‘voucher’ stands for_____

Question 4.
Furniture bought on credit is the wrong re­corded in the cash book. It is an exam-pie of an error of….
a. principle
b.compensation
c. commission
d. omission

Question 5.
Name any two internal users of accounting information of your choice.

Question 6.
Income tax paid by the sole trader from the business is treated as____
a. Capital
b. Drawings
c. Expensed.
d. None of these

Question 7.
Arun sold goods on credit for Rs. 1000 to Amal. Who is the debtor in this transactions?

Question 8.
……………is used as a source document for recording purchase return.

Question 9.
Complete the series based on the hint given:

Hint: Intangible asset – goodwill

1. Fictitious asset -________
2. Liquid asset – __________

Answer any five from question numbers 10 to 15. Each carries two scores.

Question 10.
Prepare a cash book from the follow­ing transactions of grace enterprises for the month of December 2010.

Question 11.
Computerised accounting has some advan­tages over manual accounting. List out any four such advantages.

Question 11.
Computerised accounting has some advan­tages over manual accounting. List out any four such advantages.

Question 12.
Jaya Brothers is a sole trader who invested Rs 10000 on 01-01-2012 in his business and the accounting year. He also withdrew Rs 6000 for his private use. Ascertain his profit for the year.

Question 13.
Given below is an extract taken from the Trial Balance of a trader as on 31 -12-2012

Additional information:
a. Further bad debts to be written off this year were Rs 100.
b. 10% is reserved for further bad debts
How much amount has to be debited to the Profit and Loss account?
<

Question 14.
Unni purchased goods for Rs 9818 and the trader allowed a discount of Rs 18 at the time of purchase.
a. Identify the type of discount
b. Mention the other types of discounts available and differentiate them with the one stated above.

Question 15.
Consider the following information from the books of Mr. Sidique.
a. Profit for the year Rs. 60000
b. Additional capital introduced by him Rs. 50000
c. Drawings by him this year Rs.30000
d. Capital at the end of the year Rs.200000
Find the capital contributed by him at the beginning of the year.

Answer any three from question numbers 16 to 19 Each carries three scores.

Question 16.
M.S. Brothers carry on business as cloth deal­ers. From the following, write their purchase book for January 2010


3^rd Jan-2010

Purchased on credit from Ambika Mills, 100 meters long cloth @ Rs 30 per meter and 50 meters shirting @ 50 per meter.

8^th Jan-2010
Purchased for cash from Aravind Mills, 50 meters muslin@ Rs 40 per meter
15^th Jan-2010

Purchased on credit from India Textile Mills, 120 meters suiting @ Rs 100 perimeter and 100 meters shirting @ 60 per meter.

20^th Jan-2010
Purchased laser printer on credit from Bharath Company Ltd. for Rs 12000

Question 17.
0n January 31, 2013, the passbook of Miss Reshmi showed a credit balance of Rs 15000. On verifying the passbook with the cash book, the following was observed.


1. Ascertain the cash book balance as on the above date.
2. Give any two causes of differences between a cash book and a passbook other than the four stated above.

Question 18.
0n 1^st July 2011, Mrs. Kavitha sold goods to Mrs. Molly for Rs 10000 and drew 2 months bill for that amount which was duly accepted. On 5^th July 2011, Mrs. Kavitha discounted the same with the bank for Rs 8500. On the due date, the bill was dishonored and noting charges of 150 was paid by the bank. Show the journal entries in the books of both the parties.

Question 19.
Prasad kept his books under single entry system. His position as on 31 -12-2012 was as follows.

His capital account shows a credit balance of Rs 54000 as on 01-01-2012. He introduced
an additional capital of Rs 5000 during the financial year. He withdrew Rs 10000 for
personal purpose. Ascertain his profit for the yearended3l-12-20l2.

Answer any two from question number 20 to 22. Each carries four scores.

Question 20.
On 01 /01 /2013, A sold goods to B for Rs 2000 and on the same day, ‘A’ drew upon ‘B’ a bill of Rs 2000 for three months. On 06/01/2013, the bill has been discounted and received Rs 1800. On the due date, the bill has been dishonored.
Draw up the journal in the drawer’s book.
What would be the entry have been had the banker spent Rs 100 for noting the bill?

Question 21.
Give journal entries for the following tran­sactions.
1. Ram started a business with cash Rs. 80,000/- Building Rs. 1,50,000/­Machinery Rs. 1,20,000/- and stock of goods Rs. 50,000/-
2. He purchased goods for Rs. 70,000 of which he paid Rs. 50,000 in cash and balance on credit from Mohan

Question 22.
The following is the trial balance of Ammu Associates for the year ending 31st Dec­ember, 2014 and other information relating are given to you. Find the working result of business and also show the financial position of them for the year.

Additional information:

• Closing stock is valued at Rs. 25000
• Salary of an employee is not paid Rs.500
• Further bad debt incurred Rs. 200
• Provision for bad debt is created at 5% on debtors.

Answer question numbers 23 and 24. Each car­ries five scores.

Question 23.
Some transactions relating to business are given below:

1. Prepare a suitable cashbook from the above.
2. Identify a special Journal where goods withdrawn by the proprietor for perso­nal use worth Rs 200 will be recorded

Question 24.
The following balances are taken from the books of Mr. Biswas. After making the following adjustments, prepare the Trading and Profit and Loss accounts for the year ended 31 st March 2014 and a Balance Sheet as on that date.

Answer any one from question numbers 25 and 26. A question carries six scores.

Question 25.
Compute the cost of goods sold and gross profit with the help of the following information.

Question 26.
Prepare the financial statements of Rajeevan Stores for the year 2012-13 from the information given below.


Adjustments:
(a) The closing stock was valued at Rs 7000.
(b) Wages yet to be paid Rs 300.
(c) Rent includes advance payments of Rs 600 for the next year.
(d) Bad debts are written off Rs 400.
(e) Depreciate building at 10% per annum.

Answer question number 27, which carries eight scores.

Question 27.
What do you mean by accounting, branc­hes of accounting and explain the features of accounting?

Answer

Answer 1.
business entity

Answer 2.
Petty cashier

Answer 3.
Entity

Answer 4.
principle

Answer 5.
Managers, Employees

Answer 6.
Drawings

Answer 7.
Amal

Answer 8.
Debit Note

Answer 9.
Preliminary expenses / Profit and loss (Debit balance)

Answer 10.
Double column cash book

Answer 11.
1. Speed: A computer is able to process data at a very high speed than that of a human being.
2. Accuracy: gree of exactness with which compu­tation are made and operations are performed.
3. Diligence: Computers can work for long hours without any laxity and monotony.
4. Versatility: Computers have the ability to perform a variety of task, simple as well as complex. It can be used in any area of application – business, industry, statistical, technological etc.

Answer 12.
Statement of Profit / Loss for the year ended

Answer 13.

Answer 14.

Answer 15.

Answer 16.

Answer 17.

ii.
(a) Interest, dividend etc collected by the bank
(b) Direct payment by the bank on behalf of the customer.
(c) Interest credited by the bank.
(d) Dishonor of cheques/bill.

Answer 18.
In the books of Mrs. Kavitha

Answer 19.

Answer 20.
In the books of Drawer (A)

Answer 21.

Answer 22.

Answer 23.

Answer 24.

Answer 25.
Cost of goods sold = opening stock + Purchase + Direct = Expenses – closing stock
=60000 + (30000-2000) + 50000 + 10000-80000
= 60000 + 298000 + 60000 – 80000 = 338000
Gross profit = Sales (Net) – Cost of goods sold = (400000 – 3000) – 338000 = 59000

Answer 26.

Answer 27.
Meaning and Definition of Accounting According to the American Institute of Certified public Accountants [AICPA], “Accounting is an art of recording, classi­fying and summarizing in a significant manner and in terms of money, trans­actions and events which are, in part, at least, of a financial character and inter­preting the result thereof’.

Branches of Accounting
In order to satisfy the needs of the differ­ent people interested in accounting infor­mation, various branches of accounting have developed. They are:

1. Financial Accounting: It is the original form of accounting. The purpose of this form of accounting is to record transa­ctions in the books of accounts and to prepare the financial statements and interpreting the results.

2. Cost Accounting: This branch of accounting deals with the process of ascertainment of cost with the help of this system, the cost of product or services can be ascertained and controlled. It is more helpful to the management of the business.

3. Management Accounting: It is con­cerned with the use of financial and cost accounting information to managers for making business decisions.

Accounting Process/Features
Identification: It means determining and identifying events that are to be recorded in business. The business transactions and other economic events, therefore, be evaluated for deciding whether it has to record in the accounts

Measurement: It means quantification of business transactions into financial terms by using monetary units (Rupees). If an event cannot be monetarily expressed, it is not considered for recording.

Recording: Once the economic events are identified and measured, they are recorded in the books of accounts in chronological order.

Communication: The summarised accounting information has to be communicated in a proper form to the internal as well as external users.

Objectives of Accounting:

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Model Question Paper 2

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question numbers 1 to 9. Each carry one score.

Question 1.
Credit purchase is calculated by preparing……….

a. Total Debtors account
b. Total Creditors account
c. Bills Receivable account
d. Bills Payable account

Question 2.
Under which one of the following can the asset of ‘Debtors’ be well placed?

a. Real asset
b. Fixed asset
c. Current asset
d. Human asset.

Question 3.
The drawer of a bill of exchange is always the………

a. Debtor
b. Endorser
c. Creditor
d. Proprietor

Question 4.
Introduction of the latest technologies may be one of the causes for_________
<
a. Depletion
b. Amortisation
c. Appreciation
d. Depreciation

Question 5.
What will be the effect on the trial balance if Rs 500 is received as interest and correctly entered in the cash book, but posted to the debit side of interest account?

Question 6.
A bill dated August 1, 2012, is payable two months after date. If the due date is a public holiday, what will be the date of maturity of the bill?

Question 7.
When the debit of income and expenditure is more than its credit, it leaves a………

a. profit
b. surplus
c. deficit
d. loss

Question 8.
A ____ is a person to whom business owes money.

a. Debtor
b. Creditor
c. Investor
d. Borrower

Question 9.
Furniture bought on credit is wrongly re­corded in the cash book. It is an exam-pie of an error of ………..

a. Error of principle
b. Error of compensation
c. Error of commission
d. Error of omission

Answer any five from question numbers 10 to 15. Each carries two scores.

Question 10.
The trial balance is a statement prepared to check the arithmetical accuracy of business.
a. Name any two types of errors which can­ not be disclosed through this state­ment.
b. Rectify the following errors.

1. Office furniture purchased for Rs. 5000 was posted to purchase acco­unt.
2. Cash sales Rs. 2000 was posted as Rs. 200.
3. Goods withdrew by the proprietor for personal use Rs. 1000 was not recorded in the books

Question 11.
Every transaction has two aspects which will be recorded in the books of accounts.
a. Identify and explain the accounting concept referred to above, by giving suitable examples.
b. Narrate a transaction which affects only the asset side of an accounting equation

Question 12.
The following errors are noticed in the books of accounts of a trader at the time of prepara­tion of a Trial Balance.

a. Sales book was overcast by Rs 300
b. Salary paid Rs 1500 was wrongly debited to Wages account.
c. Goods sold to Kavitha worth Rs 2000 were completely omitted to be reco­rded.
d. Rent amounting to Rs 1200 was recei­ved but debited to Rent account as Rs 120.

1. 1. Pass the rectification entries for the above.
   2. Identifying the compensating error from the above.

Question 13.
Which assumption of accounting states that the capital supplied by the proprietor is a li­ability to the business? Describe it in one or two sentences.

Question 14.
Jaya Brothers is a sole trader who invested Rs 10000 on 01-01-2012 in his business and the same was found at Rs 18000 at the end of the accounting year. He also withdrew Rs 6000 for his private use. Ascertain his profit for the year.

Question 15.
Unni purchased goods for Rs 9818 and the trader allowed a discount of Rs 18 at the time of purchase.
a. Identify the type of discount
b. Mention the other, types of discounts available and differentiate them with the one stated above.

Answer any three from question numbers 16 to 19. Each carries three scores.

Question 16.
Kannan and Sona acquired a machine for Rs.1,80,000 on 10^th Oct 2012 and spend Rs. 20000 for its installation. The firm write-off depre­ciation at the rate of 10% p.a. on original cost every year. Draw up machinery account for the first 3 years given that the books of accounts close on March 31 st every year.

Question 17.
Prepare a Bank Reconciliation Statement on behalf of Lalu shoe mart as on 31 -03-2013.

• Balance as per cash book as on 31­03-2013 was Rs 3000.
• A cheque worth Rs 2000 issued for rent, so far not presented to a bank
• Interest credited to passbook was only 1200
• Chinnu, one of our customers, cred­ited Rs 4000 to our bank directly.
• Bank charges of Rs 200 were not cr­edited to the cash book so far.

Question 18.
Noel, the sole trader bought a building for Rs. 1,00,000 on01/01/2009.
Further, he constructed another building which was completed on 01 /01 /2010. He spent Rs 2,00,000 for this.
Depreciation was charged at the end of every year on 31st December on the diminishing balance method @10%. Draw the building account till 2012.

Question 19.
On 1^st January 2012, Rajan sold goods to Suresh for Rs 25000 and drew upon him a bill of exchange for 2 months. Suresh accepted the bill and returned it to Rajan. He then endorsed the bill to Manoj, who discounted the bill with the bank on 15-01 -2012 for cash Rs 24750. The bill was dishonored on the due date. Show the journal entries in the books of Rajan and Suresh.

Answer any two from question numbers 20 to 22. Each carries four scores.

Question 20.
On 1st January 2015, Arya sold goods to await for Rs. 10000 and drew a bill of exchange for 3 months. Adwaith accepted the bill. In 7th Feb 2015 Arya discounted the bill with her bank for Rs. 9800. But on the date of maturity of the bill, Adwaith was unable to make the payment. Pass the journal entries in the books of Arya.

Question 21.
On 1^st July 2012, a firm purchased a plant worth Rs 40,000. The firm writes-off depreciation @ 10% on the original cost. The accounts are closed on 31^st December every year. If the plant is sold for Rs 35000 on 1st July 2013, prepare the plant account up to this date.

Question 22.
Ali purchased goods for Rs 30000 from Stephen on 1st January 2015. A bill was drawn for three months which was accepted by the drawee and returned to Stephen. On the same day, the bill was discounted with the bank @12%. Pass the entries in the
books of the drawer and drawee.

Answer question numbers 23 and 24. Each car­ries five scores.

Question 23.
Prepare a double column cash book on behalf of a cloth merchant from the information given below.

Question 24.
Noel, the sole trader bought a building for Rs. 1,00,000 on01/01/2009.
Further, he constructed another building which was completed on 01 /01 /2010. He spent Rs 2,00,000 for this.
Depreciation was charged at the end of every year on 31st December on the diminishing balance method @10%. Draw the building account till 2012.

Answer any one from question numbers 25 and 26 A question carries six scores.


Question 25.
Mention the difference between double en­try and single entry system.

Question 26.
Find the sale of Binesh from the following information provided by him for the year ending 31 st March 2013.

Answer question number 27, which carries eight scores.
Question 27.
From the following Trial balance, prep­are the Trading and Profit and Loss account for the year ended 31^st Dece­mber 2012 and a Balance sheet as on that date considering the adjus­tments given.


Adjustments required:
(a) The closing stock was valued at Rs 18000.
(b) Insurance prepaid Rs 200.
(c) Salary outstanding Rs 3000.
(d) Rs 500 written off as further bad debts
(e) Provide 10% on debtors against bad and doubtful debts.
(f) Depreciate furniture @10%

Answer

Answer 1.
Total Creditors account

Answer 2.
Current asset

Answer 3.
Creditor

Answer 4.
Depreciation (Obsolescence)

Answer 5.
A liability

Answer 6.
The expense for the business

Answer 7.
Procedure

Answer 8.
Creditor

Answer 9.
Error of principle

Answer 10.
a. Errors of Principle, Compensating errors

Answer 11.
a. Duality concept/Double entry concept
According to the duality concept, every business transaction has two aspects

• a debit aspect (giving aspect) and
• a credit aspect (receiving aspect).

Eg: Purchased goods for cash
Debit aspect – Purchases
Credit aspect – Cash
b.

• Purchased machinery for cash
•  Sold furniture for cash etc.

Answer 12.

Answer 13.
A business entity or Accounting entity. According to this concept, the business unit has a separate entity apart from its owners. Thus the proprietor and his dealings with the business should be regarded as a transaction.

Answer 14.
Statement of Profit / Loss for the year ended 31-12-2012

Answer 15.

Answer 16.

Answer 17.
Bank Reconciliation Statement as on 31-03-2013

Answer 18.

Answer 19.

Answer 20.

Answer 21.

Answer 22.
In the books of Drawer (Stephen)


Answer23.

Answer 24.

Answer 25.
The following are the difference between the double-entry system and single entry system.

Answer 26.

Answer 27.
Trading and Profit and Loss Account for the year ended 31-12-2012

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Model Question Paper 1

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question 1-5 which carries score 1 each.

Question 1.
Rajeev received an order for 100 Churidars of र 250 per Churidar from Krishna Textiles. But the accountant did not record the item in the books. Point out the accounting con­cept guided the accountant.

Question 2.
A loan can be treated as a short loan if the period is
a. years
b. More than two years
c. Less than one-year
d. than one year

Question 3.
Did Sam sell goods worth? 15000 on 10-03-2016 to Dinesh and drew a bill for two months. Calcu­late the maturity date if Dinesh accepted it

Question 4.
Identify the key attribute from the following:
a. Name of the student
b. Admission number
c. Class
d. Date of birth

Question 5.
SQL stands for
a. Structured Question Language
b Standard Question Language
c. Structuared Query Language
d. Standard Query Language

Question 6.
Fill in the blanks with suitable examples.

Question 7.
The following is the error committed in the book of a car Manufacturing company
Wages A/c Dr
Cash A/c
(Being wages paid for the construction of build­ing)

1. 1. Show the rectification error
   2. Identify the types of error involved

Question 8.
Prepare a statement showing the accounting equation on the basis of following transac­tions.
1. Nihara started a business with cash र 5,00,000
2. Purchased goods from Nirmal for र 60,000
3. Paid into Bank र 75,000
4. Sold goods to Abi costing र 80,000 for र1,00,000

Question 9.
Show the Debit or Credit of the following items.
a. Increase in the value of Fixed asset
b. Increase the amount of withdrawals from the business for private affairs
c. Decrease the value of debtors

Question 10.
An amount transferred from one account to another account is treated a contra entry. Write two more examples of contra entry.

Question 11.

Question 12.
Briefly explain the following terms:
a. Single Entry
b. Accrual System

Answer any five from question numbers 13 to 18. Each carries two scores.

Question 13.
From the following transactions of M/s Sujith and Sons for the month of April 2017. Pre­pare Purchase Day Book.
April 52017 purchased credit from M/s Rahul Mills.
100 pieces of long cloths @ र 90/piece 50 pieces of shirting @ र 150/piece.
April 8, 2017, Purchased for cash from M/s Niranjan Mills.
50 pieces of suiting @ र 180/piece.
April 152017 purchased goods on credit from Sunil Mills.
20 pieces of coatings @ र 1200/piece.
10 pieces of shirtings  150/piece.
April 20, 2017, purchased credit from Laneesh T.raders
60 typewriter र@ 500 each.

Question 14.
Identify the type of errors on the basis of the following narrations:

Question 15.
Find out the profit of the business from the given information:
Capital at the beginning of the year र 6,50,000
Capital at the end of the year  र 5,00,000
Drawings made during the year र 2,75,000
Additional Capital introduced र  50,000

Question 16.
List out the three distinct advantages of computerised accounting over manual ac­counting

Question 17.
What is a Query in computerised accounting?

Question 18.
Balance sheet differs from the statement of affairs. Write three points to support the above state­ment

Answer any three from question numbers 19 to 22. Each carries four scores.

Question 19.
Gopal cashier of star traders advanced र 2,000 as imprest amount to Ramesh on 1 -1 -2017 the petty cashier of the firm. Could you help Ramesh to record the following items?

Question 20.
Soorya Traders purchased machinery for र  1,50,000 on 1 -1 -2012. The further purchased machinery on 1-7-2013 for र 80000. Prepare Machinery Account for three years considering that the firm writes off depreciation at the rate of 10 % on original cost every year.

Question 21.
Hari in a discussion agrees that financial statements are the most reliable accounting report to exhibits the profitability of the firm. Do you agree? why?

Question 22.
Write journal entries for the following transactions:
a. Did business start with cash र 1,00,000
b. Purchased goods from Manu र 40,000
c. Purchased furniture र 1,50,000
d. Paid cash to Manu in full settlement

Answer question numbers 23 and 25. Each car­ries five scores.
Question 23.
Prepare a bank reconciliation statement.
a. Overdraft is shown as perc ash book 31-12-2017 र 20,000.
b. Bank charges debited in the passbook
c. Interest on overdraft र 760.
d. Cheque issued but not encashed र 4,300.
e. Interest on investment collected by the Bank and credited in the passbook र 120.
f. Cheque paid into Bank but not cleared before 31-12-2017? 2,200.

Question 24.
Sojan sold goods for? 50,000 to Sreejithon 1­4-2017. Sojan drew a bill of exchange upon Sreejith for the same amount for three months. Sreejith accepted the bill and resumed into Sojan. Sojan endorsed the bill to George. The bill is dishonored on the due date. Show the journal entries in the books of Sojan.

Answer any one from question numbers 25 and 26. A question carries six scores.

Question 25.
List out five situations which lead discrep­ancies in the pass book balance and cash book balance.

Answer the following questions which carry 8 scores.

Question 26.
The following balances are extracted from the Trail Balances of.KBros. Prepare Trading and Profit and Loss A/c on the year ending 31 ^st March 2017.

1. Closing stock र 10000
2. Provide 5% provision on doubtful debts.
3. Wages र 300 and salary र 500 are outstanding.
4. Depreciation on plant and Machinery 5%, Building 10%.

Answer

Answer 1.
Full disclosure concept.
This principle requires that all material and relevant facts concerning financial perfor­mance of an enterprise must be fully and com­pletely disclosed in the financial statement.

Answer 2.
Less than one year

Answer 3.
11-5-2016

Answer 4.
Admission number

Answer 5.
Structured Query Language

Answer 6.

Answer 7.
a. Building A/c
To Wages A/c
An error of principle when a transaction is recorded in contravention of accou­nting principles.

Answer 8.

Assets = Liability ± Capital
Asset = Cash + Debtors + Stock
= 425000+100000 + (-20000) = 505000
Assct=L+C=445000+ 60000= 505000

Answer 9.
a. Debit
b. Debit
e. Credit
d. Debit

Answer 10.
a. Cash deposited into bank
b. withdrew cash from a bank

Answer 11.

Answer 12.
single entry
Single entry accounting system is a method of book keeping relying on a one-sided accounting entry to maintain financial information.

Accrual system
Under the accrual system basis of accounting, expenses are matched with the related revenue and are reported when the expenses occur, not when

the cash is paid.
The result of accrual accounting is an income statement that better measures ta specific time period.

Answer 13.

Answer 14.
Error of principles
When a transaction is recorded in contravention of accounting prin­ciples. It is called the error of principles.

Error of commission
There are tire error which is committed due to wrong posting; of transactions, wrong totaling or wrong balancing of the accounts, the wrong casting of subsidiary books etc. These errors are clerical nature and most of the errors of commission effect in the trail balance.

Answer 15.

Answer 16.

Answer 17.
A query is basic tools that access provides for retrieving information from the database. It is used to review, add, change or delete data from the database. It allows. taking information from single or multiple tables to obtain the data required. Different types of queries are Selected queries, Parameter queries, Crosstab queries, Action queries, Union query, and Pass-through query.

Answer 18.

Answer 19.

Answer 20.

Answer 21.
Yes, I agree with the statement. Financial statements are more reliable accounting rep­orts to exhibits the profitability of the firm. Trading and Profit and Loss Account, Balance sheet are the two important finan­cial statements. Trading and Profit and Loss Account also known as income statements show the financial performance of the busi­ness in the form of Profit of Losses for a particular period. The balance sheet shows the financial position of the business for a particular date.

Answer 22.

Answer 23.

Answer 24.

Answer 25.
The various situations which lead to discrepancies in pass book and cash book balances are:

1. Cheque issued or drawn to creditors but not paid by Bank.
2. Amount deposited directly into the Bank.
3. Expenses paid by the Bank
4. Bank charges
5. Cheque deposited for collection but not yet collected and credited by the bank.
6. Interest on deposits

Answer 26.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Improvement Question Paper 2018

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question 1 to 8. Each carry 1 score.

Question 1.
State the accounting concept, if a business charges depreciation underwritten down value method and it follows the same method in the subsequent years.

Question 2.
Which one of the following events is NOT a business transaction?
a. Furniture purchased for cash
b. Goods are ordered for next month
c. 10% of debtors are treated as bad.
d. Salary outstanding to the employee

Question 3.
Computer purchased from Mr.X on credit is recorded in the ……………..
a. Purchase book
b. Journal proper
c. Cash book
d. Sales book

Question 4.
As per business entity concept owner of the business is
a. supplier
b. creditor
c. debtor
d. borrower

Question 5.
Find the odd one and state the reason
a. Mouse
b. Monitor
c. Keyboard
d. Pen drive

Question 6.
Find the “entity” from the following.
a. Employee
b. Employee
c. Employee name
d. Age

Question 7.
Income receivable is………………….
a. an asset
b. a liability
c. profit
d. a loss

Question 8.
Different entities are related to simplifying the data storage is termed as………….

Answer any five from question numbers 9 to 14, Each carries two scores.

Question 9.
Classify the following items as Revenue, Ex­pense, Gain and Profit.
a. Profit on sale of investment
b. Interest received
c. Goods sold at above cost
d. Depreciation

Question 10.
Arun constructed a building for Rs.5,00,000 for his new business concept. After 2 years the market value of the building is enhanced toRs.8,00,000
a. If you are the accountant, which amount appear in the books?
b. What is the accounting principle support your recording?

Question 11.
Cash book is both a Journal and Ledger. Justify your views.

Question 12.
Write the name of the correct computer com­ponents in the given box.

Question 13.
Identify the limitations of CAS from the foll­owing
a. Disruptions
b. Scalability
c. Staff opposition
d. Legibility

Question 14.
Point out any two differences between ‘Pro­vision’ and Reserve’

Answer any 4 questions from question numbers 15 to 19. Each carries 3 scores.

Question 15.
Show the effect of following transactions on Asset, Liabilities, and Capital based on the accounting equation.

1. Started a business with cash र15000
2. Rent received र 5000
3. Purchased goods on credit from Rema र2000
4. Paid cash to household expenses र 4000
5. Sold goods for cash (cost 10000) र13000
6. Deposited into bank र 25000

Question 16.
Calculate gross profit from the balances taken from the books of Usha for the year ending 31^st March 2017

Question 17.
From the following information, calculate the capital at the beginning.

Question 18.
Explain briefly about ‘Accounting Reports’.

Question 19.
What are the following terms stand for?

1. GAAP
2. IFRS
3. ICAI

Answer any 3 questions from question numbers 20 to 23. Each carries 4 scores.

Question 20.
Give narrations for die following journal entry.

Question 21.
Record the following transactions in a double column cash book

Question 22.
Chandra Traders purchased a Motor Van on 01-01-2013 for र 6,00,000. The firm writes off depreciation at the rate of 10% p.a on written down value method. Draw up Motor Van account for the first three years

Question 23.
Identify the debit and credit aspects from the following transaction.

• Insurance premium paid in advance
• Discount allowed Mr. Anandu
• Goods were taken for personal use
• Depreciation is written off on Machinery

Answer any 2 questions from question numbers 24 to 27. Each carries 5 scores.

Question 24.
The cash book shows a debit balance of Rs. 10, 800. on comparing the cash book with passbook the following discrepancies were found. Help them to reconcile the same.

Question 25.
Help Ramu a friend of you to prepare a Trial
Balance with the following items.

Question 26.
Rectify the following errors
a. Credit sales to Mohan र 1200 was not recorded
b. Rent paid र 6000 was posted to Ramu (Laird Lord) personal account
c. Cash sales र 2000 were posted as र 200
d. Sales book overcast by र 3000
e. Purchases book under cast by र 4000

Question 27.
Aroop sold goods to Salini on January, 1st 2017 for र 40000 and drew upon her a bill of exchange for three months. Salini accepted the bill and returned to Aroop. Aroop discounted the bill by an interest of 8% p.a on 02-01-2017. On the due date, the bill was dishonored. Record the entries in the books of Aroop

Answer question number 28, which carries 8 scores.

Question 28.
From the following Trial Balance of M/s. Goutham and Son’s as on 31 st December 2016 prepare a Trading and Profit & Loss Account and Balance sheet.


Adjustment:
a. Closing Stock र 12,300
b. Outstanding wages र 200 and salary र 100
c. Accrued commission र 300
d. Create 5% provision for bad and doubtful debts.
e. Charge 10% depreciation on Machinery.

Answers

Answer 1.
Consistency

Answer 2.
Goods are ordered for next month

Answer 3.
Journal proper / Purchase book

Answer 4.
Creditor

Answer 5.
Monitor [Output component]
OR
Pen drive [Storage device ]

Answer 6.
Employee

Answer 7.
An asset

Answer 8.
Relationship/ER Model/Entity Relationship

Answer 9.
Profit on sale of investment – Gain
Interest Received – Revenue
Goods sold at above cost – Profit
Depreciation – Expense

Answer 10.
a. Rs.500000
b. Historical cost concept/Cost principle

Answer 11.
1. Cash transactions are recorded directly from source documents
2. Cash and bank balance can be determi­ned. Thus there is no need for preparing cash a/c or bank a/c.

Answer 12.
a. Input
b. output
c. Memory unit
d. Control unit

Answer 13.
a. Disruptions
b. Staff opposition
c. Provision
d. Reserve

Answer 14.

Answer 15.

Answer 16.
Gross Profit = Net sales – Cost of goods sold
Cost of goods sold = Opening stock + Net purchases + Direct expenses – Closing stock
CGS = 100000 + 900000 + 80000-150000
=930000
GP= 150000-930000 = 570000

Answer 17.

Answer 18.
Accounting report is a collection of related information. It is a physical form of account­ing information. It helps in decision making.

Answer 19.
a. GAAP – Generally Accepted Account­ing Principles
b. IFRS – International Financial Reporting Standards
c. ICAI – Institute of Chartered Account­ing of India.

Answer 20.

1. Goods are withdrawn for Personal use
2. Introduced stock into the business
3. Paid cheque to Rejitha
4. Sales A/C closed

Answer 21.

Answer 22.

Answer 23.
Insurance paid in advance A/C – Debit
Insurance – Credit
Discount allowed A/C – Debit
Mr. Anandu A/C – Credit
Drawings A/C – Debit
Purchases A/C – Credit
Depreciation A/C – Debit
Machinery A/C – Credit

Answer 24.

Answer 25.

Answer 26.

Answer 27.

Answer 28.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Previous Year Question Paper 2017

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time of 2 hrs.
• You are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read questions carefully before you answering.
• All questions are compulsory and the only internal choice is allowed.
• When you select a question, all the sub-questions must be answered from the same question itself.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Question 1.
Vinod took a loan of र 1,00,000 from Canara Bank. Identify the debtor in the above transaction

Question 2.
Writing off the cost of intangible assets is te­rmed as …………..
a. depreciation
b. depletion
c. amortization
d. obsolescence

Question 3.
Which one of the following is NOT a feature of Ready-to-use accounting software?
a. It is suited to small organizations.
b. A volume of accounting transactions is very low
c. Cost of installation is high.
d. A number of users is limited.

Question 4.
Classify the following assets under appropri­ate heads.

a. Cash
b. Machinery
c. Land
d. Stock

Question 5.
“A Balance Sheet is more reliable than state­ment of affairs”. Explain.

Question 6.
Classify the following into input devices and output devices.
a. Keyboard
b. Printer,
c. Mouse
d. Monitor

Question 7.
Give any two limitations of computerized ac­counting systems.

Question 8.
a. Write a suitable entity for the attributes given below
Account Code,
Account Name
b. Also, identify the key attribute to that en­tity.

Question 9.
a. Mention the name of the reserve that is created out of revenue profits.
b. How does it differ from capital reserve?

Question 10.
Opening stock र 18,000
Purchases र 22,000
Wages र  5,000
Closing stock र 15,000
a. Ascertain cost of goods sold.
b. How is gross profit, if sales are? 37,500

Question 11.
Write any two data types in MS-Access with suitable examples.

Question 12.
Match the following

Question 13.

• Started business with cash र 85,000 and stock र 15,000.
• Sold goods for cash र 10,000.

a. Prove that the accounting equation is sat­isfied in the above transactions.
b. Also, pass the journal entries to record the above transactions

Question 14.
Purchases day book was undercast by र 3,000.
Wages paid र 500 in connection with pur­chase of machinery has been debited to wages account.
a. Identify the type of errors committed in the above transactions.
b. Pass the entries to rectify it.

Question 15.
On 1st January. 2016 Arun drew a 3 months bill upon Varan for र 6000. On 3rd January 2016, Arun discounted the bill with his banker @ 6% per annum. The bill was honored on the due date.
a. Identify the drawer in the above bill.
b. Record the necessary journal entries in the books of Arun and Varan.

Question 16.
The cashbook of Manu showed a debit bal­ance of र 18,000. On comparing cash book with Passbook, the following differences were noted.
a. Cheque issued but not yet presented for payment र 4,000.
b. Bank charges debited in the passbook र 500.
c. Cheques sent to the bank for collection but not yet collected र 3,000.
d. Rent collected and credited by the bank र 3,500.

1. 1. Name the statement Manu will prepare in order to reconcile balance as per cash book with passbook,
   2. Prepare that statement to reconcile it.

Question 17.
Sethu a dealer in books had the following tran­sactions for the month of June 2016.
a. Purchased books on credit from Himalaya Publishers:
100 copies of Accountancy Text for Class
@ र 150 per text.
80 copies of Business Studies Text for Cla­ss XI
@ र 120 per text.

b. Purchased books on credit from Saradhi Books:
90 copies of Accountancy Text for Class
@ र 180 per text
75 copies of Business Studies Text for Cla­ss XII @ र140 per text Trade discount allowed 5%.

c. Returned to Saradhi Books :
8 copies of Accountancy Text for Class XII
@ र 180pertext.
15 copies of Business studies Text for Cla­ss XII
@ र140 per text.

1. Record the above transactions in the ap­propriate daybooks.
2. Identify the source document for recording the transaction no. (c) above.

Question 18.
The following is the Trial Balance of Kiran, a trader as on 31 st December 2016.

Additional information:
a. The closing stock was valued at ? 10,000.
b. Carriage outstanding? 500.
c. The commission received in advance? 700.
d. Provide 5% of debtors for bad debts.
Prepare Trading and Profit and Loss account for the year ended 31 st December 2016 and a Balance Sheet as on that date.

Answers

Answer 1.
Vinod-Debtor

Answer 2.
amortization

Answer 3.
c. Cost of installation is high.

Answer 4.
Current Assets – Cash, Stock
Fixed Assets – Land, Machinery

Answer 5.

• In the Balance sheet, the balance of assets,
• The balance sheet is prepared under the double entry system. A statement of affairs is pre­pared from incomplete records.

Answer 6.
Input devices: Keyboard, Mouse
Output devices Printer,’Monitor

Answer 7.
Limitations of CAS:

• The high cost of training
• Staff opposition
• Discretion
• System failure
• Breach of security
• Inability to check unanticipated errors
• ill effect or health

Answer 8.
a. Entity – Account
b. Key Attribute – Account code\code

Answer 9.
a.Revenue Reserve/General Reserve
b. Difference between capital Reserve and General Reserve:

1. Capital Reserve created out of Capital pro¬fit, Revenue Reserve created out of Rev¬enue profit
2. Capital Reserve – For compliance of legal requirements
   Revenue Reserve – Strengthen financial position
3. Capital Reserve – cannot be utilised for .dis¬tribution of dividend
   Revenue Reserve – Can be utilised for dis¬tribution of dividend

Answer 10.
a. Cost of goods sold = Opening stock + Net
purchases + Direct exp – closing stock Cost of goods sold
= 18000 + 22000 + 5000-15000 = 30,000 b. Gross Profit = Cost of goods sold – Net sales = 37500-30000 = 7500

Answer 11.
a. Text – It can be a name
b. Date/time: -Birthdate

Answer 12.
a. a-Principle of Conservatism(iv)
b. b – Dual aspect concept (iii)
c. c – Money measurement (ii)
d. d – Objectivity principle (i)

Answer 13.
a. Assets = Liability + capital
Cash + Stock

1. 1. 85000+15000 = 0 + 1,00,000
   2. 10,000-10,000=0+0
      95000 + 5000 = 0+1,00,000

Answer 14.
a. i. The error of commission/be sided Error
ii. The error of principle/two-sided Error

Answer 15.

Answer 16.

Answer 17.

b.Debit Note

Answer 18.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Accountancy Previous Year Question Paper 2018

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

General Instructions to Candidates

• There is a ‘cool off time of 15 minutes in addition to the writing time of 2 hrs.
• Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
• Read the instructions carefully
• Read questions carefully before you answering.
• Calculations, figures, and graphs should be shown in the answer sheet itself.
• Malayalam version of the questions is also provided.
• Give equations wherever necessary.
• Electronic devices except non-programmable calculators are not allowed in the Examination Hall.

Answer all questions from question number 1 to 9. Each carries score.

Question 1.
Notebooks purchased by a stationery shop comes under……..
a. Assets
b. Income
c. Purchases
d. Liabilities

Question 2.
Fill in the blank.
………….A/c Dr.
To Thomas & Co.A/c
(Purchased Machinery from Thomas & Co.)
a. Purchase
b. Cash
c. Machinery
d. Goods

Question 3.
Ramesh, a dealer of Television, sold old furniture to Rafeeque for Rs. 3,000 on credit. Identify the day book to record this transac­tion.
a. Purchase day book
b. Journal proper
c. Sales day book
d. Cash book

Question 4.
Bank Reconciliation Statement is prepared by…..
a. Bank
b. Depositor
c. Creditor
d. Debtor

Question 5.
Rent paid Rs.4,500 was entered in cash book as Rs. 5,400. This is an error of…..
a. Principle
b. Omission
c. Compensating error
d. Commission

Question 6.
…………….reserve is not shown in the Bal­ance Sheet.
a. Secret
b. General
c. Revenue
d. Capital

Question 7.
James sold goods for Rs. 10,000 to Rajeev and a promissory note was prepared for a period of 2 months and endorsed to Raheem. Who is the drawer of the promissory note?
a. James
b. Rajeev
c. Raheem
d. None of these

Question 8
……………….. account is prepared by a trader, who does not maintain the double entry system of accounting, to find out the value of credit purchase.
a. Total creditors
b. Total debtors
c. Bills receivable
d. Bills payable

Question 9.
Find the odd one out.
a. Keyboard
b. Mouse
c. MICR
d. Printer

Answer any five from question numbers 10 to 15 Each carries two scores.

Question 10.
Identify the accounting principles related to the following:
a. Purchased 10 kg of raw materials for Rs. 5,000 was entered in the books of account asRs. 5,000.
b. Assets of a business are always equal to the claims of owners and outsiders.

Question 11.
Rectify the following errors.
a. Sold goods for Rs. 7,000 to Sangi & Co., entered in Purchase day book.
b. Rent paid Rs. 4,000 debited to Landlord. account.

Question 12.
Insurance premium of Rs. 6,000 was paid for a period of one year on 1^st April 2015. How the transaction will be treated while preparing fi­nancial statements for the year ending 31^st December 2015?

Question 13.
Write any two features of using computers in accounting.

Question 14.
Match the column A with column B.

Question15.
Write the name of any two attributes of the entity employee in an organization.

Answer any three from question numbers 16 to 19. Each carries three scores.

Question 16.
In a business organization, goods are known in different names. Write the names used for the goods in the following cases.
a. Goods remaining unused at the end of the year.
b. Goods returned by the buyer due to break­age in transit.
c. Goods sold for cash and credit.

Question 17.
Royal Furniture received an order for making a dining table on 10^th May 2017 and they com­plete the work on 15^th July 2017. The dining table was delivered to the customer on 20^th July 2017 and received the payment on 25^th July 2017. On which date this transaction will be recorded in the books of the Royal Furniture? Why?

Question 18.
A Trial Balance is given below. Rewrite it, if there is any mistake.

Question 19.
Write a short note on a key attribute with an example.

Answer any two from question numbers 20 to 22 Each carries four scores.

Question 20.
Prepare Minerva Traders A/c from the following information for the month of December 2017.

Question 21.
Compute the cost of goods sold and gross profit with the help of the following information.

Question 22.
From the following particulars, find out total purchases.

Answer question numbers 23 and 24. Each car­ries five scores.

Question 23.
Prepare a Bank Reconciliation Statement as on 31^st December, 2017.

Question 24.
On 4^th May 2014, Rajan sold goods to Kabheer for Rs. 25,000. Kabheer paid Rs. 5,000 immediately in cash and accepted a bill drawn by Rajan for the balance amount for a period of 2 months. On maturity date, Kabheer requested Rajan to cancel the old bill and to draw a new bill upon him for a period of 3 months. He also agreed to pay interest at 6% p.a.in cash. Rajan to cancel the old bill and to draw a new bill upon him for a period of 3 months. He also agreed to pay interest at 6% p.a. in cash. Rajan agreed and cancelled the old bill and drew a new bill. The new bill was accepted and met by Kabheer on the due date. Pass the journal entries in the books of Rajan.

Question 25.
Prepare a double column cash book from the following transactions for the month of January 20l8.

Question 26.
On 1^st July 2014 M/s. Golden Stores purchased a second-hand plant for Rs. 85,000, spent Rs. 10,000 for its overhauling and Rs. 5,000 for installation. Another plant was purchased on 1^st January 2016 for
Rs. 50,000. It was decided to charge depreciation at 10% on original cost, On July 1^st, 2016, the plant purchased on 1^st July 2014 was sold for Rs. 75,000. Prepare a plant account up to 31^st December 2017.

Answer question number 27, which carries eight scores

Question 27.
The following is the Trial Balance extracted from the books of Arya Traders for the year ended 31^st March 2017.


Additional information:

1. The closing stock was valued at Rs. 45,000.
2. Salaries paid only up to 31^st January 2017.
3. Insurance prepaid Rs. 800.
4. 10% p.a. on debtors.
5. Depreciate building at 5% p.a. and furni­ture at 10% p.a. Prepare Trading and Profit & Loss account for the year end­ed 31^st March 2017 and a Balance Sheet as on that date.

Answer

Answer 1.
a. Purchase

Answer 2.
c. Machinery

Answer 3.
b. Journal proper

Answer 4.
b. Depositor.

Answer 5.
d. Commission.

Answer 6.
a. Secret

Answer 7.
b. Rajeev

Answer 8.
a. Total creditors

Answer 9.
d. Printers

Answer 10.
a. Money measurement concept
b.Dual Aspect / Duality principle
or Accounting equivalent concept

Answer 11.

Answer 12.

Answer 13.
Features in computers in accounting
1. Online input and storage of data, speed, accuracy.
2. Printout of purchase and sales invoices, the codification of accounts, grouping of, accounts, instant reports etc.

Answer 14.
a.Data processing – covert data into information
b. Front-end interface – Link between user and software
c. Reporting system – Pinal output
d. Back-end database – Data storage system.

Answer 15.
Employee ID, Employee Name, Employee Age, Employee sex, Employee Department etc.

Answer 16.
a. Closing stock: It is the amt of inventory that business still has on hand at the end of reporting period.
b. Sales return or Return Inward: Return of goods by the customer ( solid earlier) to the business.
c. Sales: IT is the revenue or income earned by a business through the sale of goods and services.

Answer 17.
Revenue Recognition Concept (Realisation Concept)
The concept says that the revenue for a business transaction should be included in the accounting records at the time when the title of goods passes from seller to buyer, unearned or unrealised revenue should not be taken into account.

Answer 18.
Trial Balance As on 31st March 2017

Answer 19.
Attributes are characteristics of entities that further describes the entity such as height, weight, date of birth, name, ID etc.
The different types of attributes are:

1. Simple or Atomic attributes: Attributes that cannot be further subdivided into smaller parts.
   Eg: height of a person
2. Composite attributes: Attribute that can be subdivided into smaller subparts.
   Eg: Name into First Name, Middle,
3. Single-valued attribute: An attribute with a single value for an entity.
   Eg: Age has an only single value
4. Multi-valued attribute: An attribute with multiple values.
   Eg: Educational qualific­ations
5. Stored attribute: A basic attribute that contains some stored value is called a stored attribute.
   Eg: From the date of birth age is derived.
6. Derived attribute: The attribute derived from a stored attribute is called derived attri­butes
   Eg: From the date of birth age is derived and age is called derived attributes.
7. Complex attribute: A multi-valued attri­bute may be nested or grouped within pare­ntheses ( ) or curly braces { } to constitute a complex

Answer 20.

Answer 21.
Cost of goods sold = opening stock + Purchase + Direct = Expenses – closing stock
= 60000 + ( 30000 – 2000) + 50000 + 10000 -80000
= 60000 + 298000 + 60000 – 80000 = 338000
Gross profit = Sales ( Net) – Cost of goods sold = ( 400000 – 3000) – 338000 = 59000

Answer 22.
Total purchases = Cash purchase + credit purchase. Cash purchase = 47000 Credit purchase

Answer 23.

Answer 24.

Answer 25.

Answer 26.

Answer 27.

Plus One Accountancy Previous Year Question Papers and Answers

Kerala Plus One Economics Model Question Paper 4

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question numbers 1 to 5. Each carry one score.

Question 1.
Match the columns ‘B’ and ‘C’ with column

Answer all questions from question numbers 2 to 6. Each carries 1 score

Question 2.
The mode can be graphically located by means of…………….

Question 3.
This method is appropriate in cases where informants are literate and are spread over a wide area.

a. Direct personal interview

b. Indirect oral investigation

c. Mailed questionnaire

d. Information from correspondents

Question 4.
What is TANWA?

Question 5.
Inflation is a situation of the general price level.

Question 6.
Who was the first person to discuss the concept of a poverty line

Answer all questions from question numbers 7 to 11. Each carries 2 scores.

Question 7.
Write the features of urban poverty.

Question 8.
Write any two examples each for quantitative and qualitative data.

Question 9.
Name two major sources of human capital in a country.

Question 10.
Distinguish between formal sector workers and informal sector workers.

Question 11.
A data on the annual profit of a firm is given below:

Draw the Arithmetic Line graph (Time Series graph) for the data.

Answer any 6 questions from question numbers 12 to 18. Each carries 3 scores.

Question 12.
Distinguish between primary data and sec­ondary data with examples.

Question 13.
In a city, the weekly observations made in a study on the cost of living index are given in the following table:


Draw a frequency polygon for the above data (without constructing a histogram)

Question 14.
Heights of 10 plants in a garden are given below.

a. Find of the mean height.
b. State the interesting property of A.M.(3)

Question 15.
‘Small scale industries play a vital role in economic development. Write the advan­tages of small-scale industries.

Question 16.
Calculate the arithmetic mean from the following data:

Question 17.
Write the conventional sources and non-conventional sources of energy.

Question 18.
Classify the following features pertaining to the economics of India, China, and Pakistan (One Child norm, very high fertility ratio, commune system, high density of popula­tion, economic reforms in 1988, economic reforms in 1991).

Answer any 4 questions from question numbers 19 to 23. Each carries 4 scores.

Question 19.
Find the odd one out and justify your answer.
a. UGC,NCERT,SCERT,NREGP.
b. Title, Captions, Stubs, Text.
c. Mode, Median, Quartiles, Percentiles.
d. Chemical fertilizers, HYV seeds, Licensing, Irrigation.

Question 20.
Compare the development experience of In­dia, China and Pakistan with reference to demographic indicators, GD.P., growth rate, and development strategies.

Question 21.
The following data shows the daily wages of 11 families.

Question 22.
While preparing a frequency distribution; your friend is confused about inclusive and exclusive classes. Help her to distinguish be­tween them, with examples for each.

Question 23.
The ranks given by two judges to the six par­ticipants of the Kuchipudi competition in the Subdistrict School Kalolsavam, 2012 are Find the correlation between the two judgments.

Answer any 2 questions from question numbers 24 to 26. Each carries 5 scores.

Question 24.
Calculate the correlation coefficient between X and Y and comment on their relationship.

Question 25.
In a survey the monthly income of 230 fami­lies in a village was found as follows:
Find mode.

Question 26.
In India, workers are employed in formal sec­tor and informal sector. Is it necessary to gen­erate gen­erate employment in the formal sector rather than in the informal sector ? Give reasons.

Answer any 2 questions from question numbers 27 to 29. Each carries 8 scores.

Question 27.
The following data shows the marks obtained by 50 students of a class in a test.

Question 28.
Your Economics teacher is planning to form an economic association in your convener from two students. The criteria for selection is the consistency in marks of five class tests in Economics.
The marks are:

Who will be selected as the convener? (Hint: State the answer by finding SD,CV)

Question 29.
Vishnu and Joshy are classmates. Usually, they conduct combine study during holidays. They want to draw a Lorenz curve during the course of their study. Explain the steps required to draw the Lorenz Curve.

Answers

Answer 1.

Answer 2.
Histogram

Answer 3.
b. Direct oral investigation

Answer 4.
Tamil Nadu Women in Agriculture

Answer 5.
Increasing

Answer 6.
Dadabhai Naoroji

Answer 7.
1. Good facility of education, drinking water sanitation etc make the standard of the living of urban people high assets


2. open unemployment is generally found

Answer 8.
Quantitative Data

• Production
• Weight

Qualitative Data

• Nationality
• Gender

Answer 9.
Major sources of human capital in a country they are,

• Investment in Education
• Investment in health
• Migration
• Information

Answer 10.
Formal sectors are an establishment with more than ten workers, they have a high salary, have social security measures, stable employment etc. While in informal sectors are establish­ments with less than ten workers, low wages, No social security measures, No stable em­ployment, etc.

Answer 11.

Answer 12.
Primary Data
It refers to a collection of data, direct from its source of origin. The enumerator i: e, a per­son who collects the data, can collect it by conducting an inquiry or an investigation.

Secondary Data:
It refers to a collection of data by some ag­ency, which already collected the data and processed. The data thus collected is called secondary data. Secondary data can be ob­tained either from a published source such as government reports, documents, news­papers, books written by economists, etc

Answer 13.

Answer 14.

Answer 15.
Small-scale industries are more “labour intensive” ie they use more labour than the large-scale industries and, therefore generate more employment. But these industries cannot compete with the big industrial firms., it is obvious that the development of small-scale industry requires them to be shielded from the large firms. For this purpose, the production of a number of products was reserved for the small-scale industry, the criterion of the reservation is the ability of these units to manufacture the goods. They were also given concessions such as lower excise duty and bank loans at lower interest rates. Therefore it can be concluded that small-scale industries play a vital role in an economy like India.

Answer 16.

Answer 17.
Conventional Source of Energy: The energy sources which cannot be compensated, once these are used ( after their exploit­tion) are termed as conventional energy sources, eg: Coal, Electricity, Petroleum

Non-Conventional Source of Energy: The energy sources which should be renewable and provide a pollution free environment are termed as a non-conventional source of en­ergy. eg: Solar, wind, tidal energy.

Answer 18.
India: High density of population, Economic reforms in 1991

Answer 19.
a. NREGP – All others are institutions for controlling education.
b. Text – All others are related to part of a table.
c. Mode – All others are partitioned values
d. Licensing-AII others are related to green revolution.

Answer 20.
The population of Pakistan is very small and is about one-tenth of China and India. Though China is the largest nation among the three, its density is the lowest. Popula­tion growth is highest in Pakistan, followed by India and China. Sex ratio is low and bi­ased against females in all the three coun­tries. The fertility rate is also low in China and very high in Pakistan. Urbanization is high in both Pakistan and China with India having 28 percent of its population living in urban areas.

Answer 21.

Answer 22.
Inclusive Method
In comparison to the exclusive method, the inclusive method does not exclude the upper-class limit in a class interval. It includes the upper class in a class. Thus both class limits are parts of the class interval.

Exclusive Method
The classes, by this method, are formed in such a way that the upper-class limit of one class equals the lower class limit of the next class. In this way, the continuity of the data is maintained.

Answer 23.

Answer 24.

Answer 25.

Answer 26.
It is necessary to generate employment in the formal sector. The reasons are:

• Acceptance of labour laws
• Formation of trade unions.
• Minimum wage fixation
• High level of monitory gains

Answer 27.

Answer 28.



Since S.D and C.V of Jyothi are less com­pared to Amrutha, Jyothi is considered more consistent. Therefore Jyothi should be selected as convenor according to the criteria.

Answer 29.
1. The size of items or mid-points of classes is cumulated. The cumulative sum of the items is assumed to be 100. All the different cumulative totals are converted into a percentage.

2. Frequencies are also made cumulative. Last cumulative frequency is considered as 100. Other frequencies except the last are converted into a percentage.

3. Cumulative frequencies are plotted on X-axis while cumulative items are plot­ted on the Y-axis.

4. We start on X-axis while cumulative items are plotted on the Y-axis

5. 0 on X-axis and 100 on Y-axis are joined by a line. This line is known as the line of equal distribution.

6. We plot the values on X and Y axis in an ordinary way and the plotted points are joined by a curve. It is the curve of ac­tual distribution.

7. The lesser distance between the line of equal distribution and line of actual distribu­tion shows lesser dispersion and so on.

Plus One Economics Previous Year Question Papers and Answers

Kerala Plus One Economics Model Question Paper 3

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer all questions from question numbers 1 to 6. Each carry one score.

State whether the following statement is true or false. (Q. 1 to Q. 3)

Question 1.
In India, inflation is calculated by using the wholesale price index.

Question 2.
SHG for Social Health Group

Question 3.
More than half of the workforce in India belongs to regular salaried employees.

Question 4.
Find the odd one out
height,weight ,honesty,price,income.

Question 5.
Find out the odd one Growth, Modernization, Equity, Exports

Question 6.
Match column B with column A


Answer questions from question numbers 7 to 11. Each carries two scores.

Question 7.
Name some modem industries which were in operation in our country at the of indepen­dence.

Question 8.
Give two ways of converting government companies into private companies

Question 9.
The activities of Kudumbasree limits in your locality plays an important role in the empowerment of women. How far it will promote the empowerment of women in your own view?

Question 10.
Critically evaluate the shortcomings of the industrial policy pursued by the colonial administrators.

Question 11.
You are asked to study, the problems faced by the rubber cultivators in Kerala. List out the important steps for preparing this project.

Answer any six questions from question numbers 12 to 18.Each carries three scores

Question 12.
Identify the various favorable conditions prevailing in India which make outsourcing possible.

Question 13.
Write three techniques for studying corre­lation.

Question 14.
Calculate the simple aggregative price index for the commodities given below.

Question 15.
China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.

Question 16.
Which of the following errors is more serious and why?

Question 17.
Complete the parts of the statistical table given below.

Question 18.
The following table gives the daily income of ten workers in a factor. Find the arithmetic mean.

Answer any four questions from question numbers 19 to 23. Each carries four scores.

Question 19.
Critically evaluate the poverty alleviation programmes implemented in India

Question 20.
Draw a flow chart with different types of sampling

Question 21.
The following table shows the ages of the patients admitted to a hospital during a year.

Find the median age

Question 22.
How do the following factors contribute to the environmental crisis in India?
a. Global warming and ozone depletion
b. Reduction of forest coverage
c. Rising population
d. Air and water pollution

Question 23.
Group the following features pertaining to the economies of India, China, and Pakistan. (One-child norm, very high fertility rate, commune system, high density of population, economic reforms in 1988, economic reforms in 1991).

Answer any two questions from question numbers 24 to 26. Each carries five scores.
Question 24.
“Many developed countries were finding it difficult to maintain the growth rate of even 5%. China was able to maintain nears double­digit growth for more than two decades.” Can you point out the main strategies adopted by China to attain this?

Question 25.
The marks secured by 60 students in an examination are given below.

Question 26.
Mark obtained by 50 students in an examination are given below. Write the frequency distribution of these marks.

8,25,14,7,33,61,78,54,81,27,21,1867,58 55,21,90,74,53,38,42 ,63,7119,20,28,3741 ,85,29,64,79,88,97,19,21,41,77,59,69 52 ,44,75,81,2791,98,39,86,19

Answer any two questions from question numbers 27 to 29. Each carries eight scores.

Question 27.
Krishna is a research student at Cochin University. He is doing research on poverty among slum dwellers. He conducted a pre­test before the actual survey begins. Mention the advantages of conducting such a survey.

Question 28.
To check the quality of two brands of light bulbs, their life in burning hours was estimated as under for 100 bulbs of each brand.

1. Which brand gives higher life?

Question 29.
During the colonial period, industrial progress of India economy was very slow. Give reasons for supporting this statement.

Answer

Answer 1.
True

Answer 2.
False

Answer 3.
False

Answer 4.
Honest

Answer 5.
Exports. Others are objectives of 5 years

Answer 6.

Answer 7.
Cotton textile, Cement Industries, Jute textile, Sugar industries, paper industries.

Answer 8.
1. Disinvestment sales of public sector companies.

2. Withdrawal of the govt from ownership and management of public sector companies.

Answer 9.
Kudumbasree units help empowerment of women in the following manner.

1. Self-employment
2. Microfinancing
3. Critical evaluation
4. Rural poverty eradication

Answer 10.
1. Capital goods industry was absent
2. Indian handicraft industries perished

Answer 11.
Choice of the target group

Answer 12.
Outsourcing is good for India. Because the outsourcing is generated the new employ­ment opportunities in the Indian economy contributed to GDP and has increased the foreign reserve in the country. This is one of the important outcomes of the globalisation process. In outsourcing, a company hires regular service from an external source. Mostly from other countries, which was previously provided internally or from within the country like legal advice, computeri$ervice, ad­vertisement, etc.

Answer 13.
1. Scatter diagram
2. Karl Person Coefficient of correlation
3. Spearman’s rank correlation.

Answer 14.

Answer 15.
Yes, China’s rapid industrial growth can be traced back to its reforms in 1978. This is because reforms in agriculture and establish­ment of infrastructure in the areas of educa­tion and health, land reforms etc. had been taking place with introduced of reforms. In the initial phase, reformers were initiated in agriculture, foreign trade, and investment sec­tors. In the later phase, reforms were initi­ated in the industrial sector. Private sector firms and township and village enterprises were allowed to produce goods. The reform process also involves dual pricing. It was found that establishment of infrastructure in the area of education and health, land re­forms, long existence of decentralized plan­ing and existence of small enterprises had helped positively in improving the social and income indicators in the post-reform period.

Answer 16.
Non-sampling errors are more serious than sampling errors because a sampling error can be minimised by taking a large sample. Even census can contain non-sampling errors.
Type of Non-sampling errors

Answer 17.

Answer 18.

Answer 19.
Critical Assessment of Poverty Alleviation Programmes: Through the policy towards
poverty alleviation has evolved in a progressive manner but gone any radical transformation. Scholars state three major areas of concern which prevent the successful implementation of the programs they are

1. Unequal distribution of land and other assets due to the benefits have been availed by the non-poor.
2. In comparison to the magnitude of poverty, the amount of resources allocated for these programmes is not sufficient.
3. These programs depend mainly on government and bank officials for their

Answer 20.

Answer 21.

Answer 22.
The major greenhouse gases
a. Global warming the major greenhou­se gases (GHGs) consist of carbon dioxide, methane, nitrous oxide, wa­ter vapor and chlorofluorocarbons (CFCs). These gases allow sunlight to penetrate to the earth’s surface, yet prevent infrared radiant heat from escaping.
b. When forest cover is lost, runoff rap­idly flows into streams, elevating river levels and subjecting downstream vil­lages, cities, and agricultural fields to flooding, especially during the rainy season. During the dry season, such areas downstream of deforestation can be prone to months-long droug­hts which interrupt river navigation.
c. Rapid human population growth has a variety of consequences] Popula­tion grows fastest in the world’s poor­est countries. High fertility rates have historically been strongly correlated with poverty and high childhood mor­tality rates.
d. Air pollution has been linked to health problems like asthma and lung disea­se, as well as the deterioration of the ozone layer (which protects us from harmful UV rays) and the warming of the earth which may destroy the habi­tats of many animals.

Answer 23.
Economy of India

• The high density of population
• Economic reforms in 1991
  Economy of China
• One child form
• Commune system
  Economy of Pakistan
• The very high fertility rate
• Economic reforms in 1988

Answer any two questions from question numbers 24 to 26. Each carries five scores.

Answer 24.
Since 1978, China began to introduce many reforms in phases the reforms were initiated in agriculture foreign trade and investment sector. In agriculture, lands were divided in two small plots which were allocated to individual households, they were allowed to keep all income from the land after paying taxes. At this stage, enterprises owned by government, in India we call them public sector enterprises were made to face competition. In reform price was fixed in two ways,i.e, farmers and industrial units were required to buy and a sell fixed quantities of inputs and outputs on the basis of prices fixed by the government and the rest were purchase and 9old at a market prices Over the years, as production increased, the population of goods or inputs transacted in the market also increased. The goal of Chinese economic re­forms was to generate sufficient surplus to finance the modernization of the mainland Chinese economy. In order to attract for­eign investors, Special Economic Zones were setup.

Answer 25.

Answer 26.

Answer 27.
Once the questionnaire is ready, it is advisable to conduct a try Out with a small group which is known as the pilot survey. Advantages of the pilot survey:

Providing a preliminary idea about the survey.
Pre-testing of the questionnaire, so as to know the shortcomings and drawback of the questions.
Assessing the suitability of the questions, clarify the instructions, the performance of enumerators and the cost and time involved in the actual survey.

Answer 28.

Answer 29.

Plus One Economics Previous Year Question Papers and Answers

Kerala Plus One Economics Model Question Paper 2

Time Allowed: 2 hours
Cool off time: 15 Minutes
Maximum Marks: 60

Answer Question number 1, which carries 5 scores.

Question 1.
Match the columns ‘B’ and ‘C’ with column ‘A’

Answer all questions from question numbers 2 to 6. Each Carry 1 score

Question 2.
As per 2009-2010, the State in India incur the highest per capita expenditure on edu­cation is
a. Kerala
b. Punjab
c. Himachal Pradesh
d. Madhya Pradesh

Question 3.
Meeting the needs of the present genera­tion without compromising the needs of the future generation is called
a. economic development
b. social development
c. sustainable development
d. economic growth

Question 4.
Data represented through a histogram can help in finding graphically the……………
a. mean
b. mode
c. median
d. standard deviation

Question 5.
When the coefficient of correlation, r =0, there is
a. positive correlation
b. no correlation
c. negative correlation
d. none of these

Question 6.
Athira plotted the values of two variables X and Y in a scatter diagram as follows. The nature of correlation here is ……………………

a. Perfect positive
b. Perfect negative
c. Positive
d. Negative

Answer all questions from question numbers 7 to 11. Each carries 2 scores.

Question 7.
Name some notable economists who esti­mated India’s per capita income during the colonial period

Question 8.
Compare and constract the terms relative and absolute poverty. Do you think absolute pov­erty exists in your neighbourhood?

Question 9.
In your view, is it essential for the government to regulate the fee structure in educa­tion and health care institutions? Give rea­son in support of your, answer.

Question 10.
Give the names of two government orga­nisations that regulate the health and education sectors in India.

Question 11.
What do you mean by rural development? Bring out the key issues in rural development.

Answer any 6 questions from question numbers 12 to 18. Each carries 3 scores.

Question 12.
Heights of 10 plants in a garden are given below.


a. Find of the mean height.
b. State the interesting property of A.M

Question 13.
Find the simple aggregative price index for the following selected commodities.


Question 14.
Given below are the seats won by different political parties of a state assembly election.

Draw a simple bar diagram to represent the polling results.

Question 15.
Explain the two categories into which infra­structure is divided. How are both indepen­dent?

Question 16.
“During the colonial rule, there was neither growth nor equity in the agricultural sector.”

1. Name the two measures adopted by the policymakers of independent India to resolve this.

2. State the features of any one.

Question 17.
What is sustainable development?

Question 18.
Distinguish between bar diagram and histo­gram.
(Hint: Not to draw diagrams)

Answer any 4 questions from question numbers 19 to 23. Each carries 4 scores.

Question 19.
The Following data shows daily

Question 20.
Identify the factors responsible for land deg­radation in India.

Question 21.
The following information relates to the daily in­come of 150 families. Calculate the arithmetic mean.

Question 22.
Scatter diagrams show the visual presenta­tion of correlation.
a. Draw scatter diagrams showing positive correlation and negative correlation.
b. Point out one example each for positive correlation and negative correlation.

Question 23.
Critically evaluate the poverty alleviation programmes in India.

Answer any 2 questions from question numbers 24 to 26. Each carries 5 scores.

Question 24.
Calculate the single aggregate price index for 2008 taking 1998 as the base year from the following data.

Question 25.
Critically evaluate the poverty alleviation programmes in India

Question 26.
While explaining the features of globa­lization, your Economics teacher says “outsourcing is one of the important out­comes of the globalization process”. Examine how outsourcing helps the Indian economy.

Answer any 2 questions from question numbers 27 to 29. Each carries 8 scores.

Question 27.
The following are the marks obtained for the class test of 10 students in a class for Eco­nomics and History.

Question 28.
Distinguish between census survey and sample survey.

Question 29.
The following data shows the marks obtained by 50 students of a class in a test.

Find the arithmetic mean, median, and mode
Answers

Answer 1.

Answer 2.
Himachal Pradesh

Answer 3.
Sustainable development

Answer 4.
Mode

Answer 5.
b. No correlation

Answer 6.
c. Positive

Answer 7.
Dadabhai Naoroji, William Digby, VKRVRao and RC Desai.

Answer 8.
Absolute poverty is defined as the inability to achieve the minimum requirement of life, health, and efficiency as a result of a very low level of income. On the other hand, relative pov­erty makes a comparison of relative levels of income of different people or groups of population to determine who poor. Yes, absolute poverty exists in my neighborhood.

Answer 9.
Yes, High fees are to be reduced or regulated due to the following reasons.

Answer 10.
Education sector

• NCERT, UGC

Health sector

• ICMR

Answer 11.
Following are the key issues in rural develop­ment.

Answer 12.


Answer 13.

\({ p }_{ 01 }=\cfrac { { \Sigma p }_{ 1 } }{ { \Sigma p }_{ o } } \times \cfrac { 180 }{ 130 } \times 100\)
= 1.3846 x 100 = 138.46

Answer 14.

Answer 15.
Infrastructure is broadly categorised as
1. Social Infrastructure:- It refers to the core elements of social change which serve as a foundation for the process of social development of a country.lt contributes to economic processes indirectly and from outside the system of production and distribution.

2. Economic Infrastructure:- It refers to all such elements of economic change which serve as a foundation for the process of economic growth.

Answer 16.

• Land reforms
• Green revolution
• Land reforms

At the time of independence, the land tenure system was charactrized by intermediaries. Who merely collected rent from the actual tillers of the soil without contributing towards improvements on the farm. The low produc­tivity of the agricultural sector forced India to import food from the United States of America. Equity in agriculture called for land reforms which primarily refer to change in the owner­ship of landholding.

Answer 17.
It refers to the development strategy to inter­ruption till the resource extraction was not above the rate of regeneration of the resource and the wastes generated were within the assimilating capacity of the environment But today, environment fails to perform its third and vital function of the sustenance resulting in an environmental crisis. The rising popula­tion of the developing countries and the af­fluent consumption and production standards of the developed world have placed huge stress on the environment in terms of its first two functions.

Answer 18.

Answer 19.



Answer 20.
Land degradation is a process in which the value of the biophysical environment is af­fected by a combination of human-induced processes acting upon the land.

The factor responsible for land degradation in India are:

1. Loss of vegetation occurring due to deforestation.
2. Dumping of non-biodegradable fresh, such as plastics
3. Shifting cultivation
4. Encroachment into forest lands
5. Forest fires and overgrazing.
6. Non-adoption of adequte soil conser­vation measures.
7. Improper crop rotation.
8. Indiscriminate use of agrochemicals Such as fertilizers and pesticides.
9. Improper plannig and management of irrigation system.
10. Extraction of groundwater in excess of the recharge capacity.

Answer 21.
Arithmetic Mean

Answer 22.


Answer 23.
Through the policy towards poverty alleviation has evolved in a progressive maimer but over the last five and a half de­cades it has not undergone any radical trans­formation.
The three major area of concern which prevents the successful implementation of the programs, they are:

1. These programs depend mainly on government and bank officials for their implementation since such officials are ill-motivated, the resources are ineffi­ciently used and wasted.

2. Unequal distribution of land and other assets due to the benefits have been availed by the non-poor.

3. In comparison to the magnitude of poverty the amount of resource allocated for these programme is not sufficient

Answer 24.
Calculate simple agregate price index
\( { P }_{ 01 }=\cfrac { \Sigma { P }_{ 1 } }{ \Sigma { P }_{ 2 } } \times 100{ 142857 } \)
\( \cfrac { 750 }{ 630 } \times 100 \)

Answer 25.
Critical Assessment of Poverty Alleviation Programmes: Through the policy towards poverty alleviation has evolved in a progres­sive manner but gone any radical transfor­mation. Scholars state three major areas of concern which prevent the success imple­mentation of the programs they are-

• Unequal distribution of land and other assets due to the benefits have been availed by the non-poor.
• In comparison to the magnitude of poverty, the amount of resources al­located for these programmes is not sufficient.
• These programs depend mainly on government and bank officials for their implementation since such officials are ill-motivated, inadequately trained, corruption-prone and vulnerable to pressure from a variety of local cit­ies, the resources are inefficiently used and wasted.

Answer 26.
Outsourcing is one of the important out­comes of the globalization process. In outsourcing, a company hires regular service from external sources, mostly from other countries, which was previously provided in­ternally or from within the country (like legal advice, computer service, advertisement, se­curity-each provided by respective depart­ments of the company).

Answer 27.
Standard Deviation is the positive square root of the mean of squared deviations from mean. So if there are five values X₁ , X₂, X₃, X₄ and X5, first their mean is calculated. Then deviations of the values from mean are cal­culated. These deviations are then squared. The mean of these squared deviations is the variance. The positive square root of the vari­ance is the standard deviation.

Answer 28.
A survey, which inculdes every elements of the population is known as Census or the Method of complete Enumeration. The essential feature of this method is that this covers every individual unit in the entire population
Sample survey:-  Population or the Universe in statistics means the totality of the items understudy. Thus, the population or the Universe is a group to which the results of the study are intended to apply. There are two methods of sampling namely, random sampling and non-random sampling. They are explained below.

Answer 29.

Plus One Economics Previous Year Question Papers and Answers