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Tamilnadu Samacheer Kalvi 12th Bio Botany Solutions Chapter 2 Classical Genetics

Samacheer Kalvi 12th Bio Botany Classical Genetics Text Book Back Questions and Answers

Question 1.
Extra nuclear inheritance is a consequence of presence of genes in __________
(a) Mitrochondria and chloroplasts
(b) Endoplasmic reticulum and mitrochondria
(c) Ribosomes and chloroplast
(d) Lysosomes and ribosomes
Answer:
(a) Mitrochondria and chloroplasts

Question 2.
In order to find out the different types of gametes produced by a pea plant having the genotype AaBb, it should be crossed to a plant with the genotype __________
(a) aaBB
(b) AaBB
(c) AABB
(d) aabb
Answer:
(d) aabb

Question 3.
How many different kinds of gametes will be produced by a plant having die genotype AABbCC?
(a) Three
(b) Four
(c) Nine
(d) Two
Answer:
(d) Two

Question 4.
Which one of the following is an example of polygenic inheritance?
(a) Flower colour in MirabilisJalapa
(b) Production of male honey bee
(c) Pod shape in garden pea
(d) Skin Colour in humans
Answer:
(d) Skin Colour in humans

Question 5.
In Mendel’s experiments with garden pea, round seed shape (RR) was dominant over wrinkled seeds (rr), yellow cotyledon (YY) was dominant over green cotyledon (yy). What are the expected phenotypes in the F₂ generation of the cross RRYY xrryy?
(a) Only round seeds with green cotyledons
(b) Only wrinkled seeds with yellow cotyledons
(c) Only wrinkled seeds with green cotyledons
(d) Round seeds with yellow cotyledons an wrinkled seeds with yellow cotyledons
Answer:
(d) Round seeds with yellow cotyledons an wrinkled seeds with yellow cotyledons

Question 6.
Test cross involves __________
(a) Crossing between two genotypes with recessive trait
(b) Crossing between two F₁ hybrids
(c) Crossing the F₁ hybrid with a double recessive genotype
(d) Crossing between two genotypes with dominant trait
Answer:
(c) Crossing the F₁ hybrid with a double recessive genotype

Question 7.
In pea plants, yellow seeds are dominant to green. If a heterozygous yellow seed pant is crossed with a green seeded plant, what ratio of yellow and green seeded plants would you expect in generation?
(a) 9:3
(b) 1:3
(c) 3:1
(d) 50:50
Answer:
(d) 50:50

Question 8.
The genotype of a plant showing the dominant phenotype can be determined by __________
(a) Back cross
(b) Test cross
(c) Dihybrid cross
(d) Pedigree analysis
Answer:
(b) Test cross

Question 9.
Select the correct statement from the ones given below with respect to dihybrid cross
(a) Tightly linked genes on the same chromosomes show very few combinations
(b) Tightly linked genes on the same chromosomes show higher combinations
(c) Genes far apart on the same chromosomes show very few recombinations
(d) Genes loosely linked on the same chromosomes show similar recombinations as the tightly I linked ones
Answer:
(a) Tightly linked genes on the same chromosomes show very few combinations

Question 10.
Which Mendelian idea is depicted by a cross in which the F₁ generation resembles both the parents
(a) Incomplete dominance
(b) Law of dominance
(c) Inheritance of one gene
(d) Co-dominance
Answer:
(d) Co-dominance

Question 11.
Fruit colour in squash is an example of __________
(a) Recessive epistasis
(b) Dominant epistasis
(c) Complementary genes
(d) Inhibitory genes
Answer:
(b) Dominant epistasis

Question 12.
In his classic experiments on Pea plants, Mendel did not use __________
(a) Flowering position
(b) Seed colour
(c) Pod length
(d) Seed shape
Answer:
(c) Pod length

Question 13.
The epistatic effect, in which the hybrid cross 9:3:3:1 between AaBb Aabb is modified as
(a) Dominance of one allele on another allele of both loci
(b) Interaction between two alleles of different loci
(c) Dominance of one allele to another alleles of same loci
(d) Interaction between two alleles of some loci
Answer:
(b) Interaction between two alleles of different loci

Question 14.
In a test cross involving F₁ dihybrid flies, more parental type offspring were produced than the recombination type offspring. This indicates __________
(a) The two genes are located on two different chromosomes
(b) Chromosomes failed to separate during meiosis
(c) The two genes are linked and present on the some chromosome
(d) Both of the characters are controlled by more than one gene
Answer:
(c) The two genes are linked and present on the some chromosome

Question 15.
The genes controlling the seven pea characters studied by Mendel are known to be located on h6w many different chromosomes?
(a) Seven
(b) Six
(c) Five
(d) Four
Answer:
(a) Seven

Question 16.
Which of the following explains how progeny can posses the combinations of traits that none
of the parent possessed?
(a) Law of segregation
(b) Chromosome theory
(c) Law of independent assortment
(d) Polygenic inheritance
Answer:
(d) Polygenic inheritance

Question 17.
“Gametes are never hybrid”. This is a statement of __________
(a) Law of dominance
(b) Law of independent assortment
(c) Law of segregation
(d) Law of random fertilization
Answer:
(c) Law of segregation

Question 18.
Gene which suppresses other genes activity but does not lie on the same locus is called as __________
(a) Epistatic
(b) Supplement only
(c) Hypostatic
(d) Codominant
Answer:
(c) Hypostatic

Question 19.
Pure tall plants are crossed with pure dwarf plants. In the F₁ generation, all plants were tall. These tall plants of generation were selfed and the ratio of tall to dwarf plants obtained was 3:1. This is called __________
(a) Dominance
(b) Inheritance
(c) Codominance
(d) Heredity
Answer:
(a) Dominance

Question 20.
The dominant epistatis ratio is _________
(a) 9:3:3:1
(b) 12:3:1
(c) 9:3:4
(d) 9:6:1
Answer:
(b) 12:3:1

Question 21.
Select the period for Mendel’s hybridization experiments.
(a) 1856 – 1863
(b) 1850 – 1870
(c) 1857-1869
(d) 1870 – 1877
Answer:
(a) 1856 – 1863

Question 22.
Among the following characters which one was not considered by Mendel in his experimentation pea?
(a) Stem – Tall or dwarf
(b) Trichomal glandular or non-glandular
(c) Seed – Green or yellow
(d) Pod – Inflated or constricted
Answer:
(b) Trichomal glandular or non-glandular

Question 23.
Name the seven contrasting traits of Mendel.
Answer:

1. Tall x Dwarf
2. yellow x Green
3. Purple x white
4. Inflated x constricted
5. axial x terminal
6. Round x wrinkled
7. Green x Yellow

Question 24.
What is meant by true-breeding or pure breeding lines/strain?
Answer:
True-breeding lines (Pure-breeding strains) means it has undergone continuous self-pollination having stable trait inheritance from parent to offspring. Matings within pure breeding lines produce offsprings having specific parental traits that are constant in inheritance and expression for many generations. Pure line breed refers to homozygosity only.

Question 25.
Give the names of the scientists who rediscovered Mendelism.
Answer:

• Hugo Devries
• Carl Correns
• Erich Von Tschermak

Question 26.
What is back cross?
Answer:
Back cross is a cross of F₁ hybrid with any one of the parental genotypes. The back cross is of two types; they are dominant back cross and recessive back cross. It involves the cross between the F₁ offspring with either of the two parents.

Question 27.
Define Genetics.
Answer:
It is the branch of biological science which deals with the mechanism of transmission of characters from parent to off-springs.

Question 28.
What are multiple alleles?
Answer:
Three or more alternative forms of a gene that occupy the same locus and control the expression of a single trait.
E.g: ABO blood group

Question 29.
What are the reasons for Mendel’s successes in his breeding experiment?
Answer:

• He concentrated in one or few characters at a time
• Factor are considered as character
• Pisum sativum has large bi sexual flower so emasculation is very easy for the hybridization process or technique.
• By naturally it is a self-pollinated crop
• This crop has short duration so three or four-generation can be raised in a year

Question 30.
Explain the law of dominance in monohybrid cross.
Answer:
Law of dominance states that the offsprings of an individual with contrasting (dissimilar) traits will only express the dominant trait in F₁ generation and both the characters are expressed in F₂ generation. This law also explains the proportion of 3 : 1 ratio in F₂ generation.

Question 31.
Differentiate incomplete dominance and codominance.
Answer:
Incomplete dominance:

1. Effect of one of the two alleles is more conspicuous.
2. it produces a fine mixture of the expression of two alleles.
3. The effect of hybrid is intermediate expression of the two alleles
4. It produces new phenotype.
5. The expressed new phenotype has no allele of its own
6. It has a quantitative effect.

Co – dominance :

1. The effect of both alleles is equally conspicuous.
2. No mixing effect of the two alleles
3. Both the alleles produces their effect independently.
4. Does not produce new phenotype.
5. The phenotype is combination of two phenotype and their alleles
6. A quantitative effect is absent

Question 32.
What is meant by cytoplasmic inheritance
Answer:
DNA is a universal genetic material. Genes located in nuclear chromosomes follow Mendelian inheritance. But certain traits are governed either by the chloroplast or mitochondrial genes. This phenomenon is known as extra nuclear inheritance. It is a kind of Non-Mendelian inheritance. Since it involves cytoplasmic organelles such as chloroplast and mitochondrion that act as inheritance vectors, it is also called Cytoplasmic inheritance.

Question 33.
Describe dominant epistasis with an example.
Answer:
Dominant Epistasis – It is a gene interaction in which two alleles of a gene at one locus interfere and suppress or mask the phenotypic expression of a different pair of alleles of another gene at another locus. The gene that suppresses or masks the phenotypic expression of a gene at another locus is known as epistatic.

The gene whose expression is interfered by non-allelic genes and prevents from exhibiting its character is known as hypostatic. When both the genes are present together, the phenotype is determined by the epistatic gene and not by the hypostatic gene.

In the summer squash the fruit colour locus has a dominant allele ‘W’ for white colour and a recessive allele ‘w’ for coloured fruit. ‘W’ allele is dominant that masks the expression of any colour.

Dominant epistasis in summer squash

In another locus hypostatic allele ‘G’ is for yellow fruit and its recessive allele ‘g’ for green fruit. In the first locus the white is dominant to colour where as in the second locus yellow is dominant to green. When the white fruit with genotype WWgg is crossed with yellow fruit with genotype wwGG, the F₁ plants have white fruit and are heterozygous (WwGg). When F₁ heterozygous plants are crossed.

they give rise to F₂ with the phenotypic ratio of 12 white : 3 yellow : 1 green.Since W is epistatic to the alleles ‘G’ and ‘g’, the white which is dominant, masks the effect of yellow or green. Homozygous recessive ww genotypes only can give the coloured fruits (4/16). Double recessive ‘wwgg’ will give green fruit (1/16). The Plants having only ‘G’ in its genotype (wwGg or wwGG) will give the yellow fruit(3/l 6).

Question 34.
Explain polygenic inheritance with an example.
Answer:
Polygenic inheritance – Several genes combine to affect a single trait. A group of genes that together Dark Red determine (contribute) a characteristic of an organism is called polygenic inheritance. It gives explanations to the inheritance of continuous traits which are compatible with Mendel’s Law. The first experiment on polygenic inheritance was demonstrated by Swedish Geneticist H.

Nilsson-Ehle (1909) in wheat kernels. Kernel colour is controlled by two genes each with two alleles, one with red kernel colour was dominant to white. He crossed the two pure breeding wheat varieties dark red and a white. Dark red genotypes F₁ generation R₁R₁R₂R₂ and white genotypes are r₁r₁r₂r₂ – F₁ generation medium red were obtained with the genotype R₁r₁R₂r₂. F₁ wheat plant produces

four types of gametes R₁R₂, R₁r₂, r,₁r₂. The intensity of the red colour is determined by the number of R genes in the F₂ generation. Four R genes: A dark red kernel colour is obtained. Three R genes: Medium – dark red kernel colour is obtained. Two R genes: Medium-red kernel colour is obtained. One R gene: Light red kernel colour is obtained. Absence of R gene: Results in White kernel colour.

The R gene in an additive manner produces the red kernel colour. The number of each phenotype is plotted against the intensity of red kernel colour which produces a bell shaped curve. This represents the distribution of phenotype.

Conclusion: Finally the loci that was studied by Nilsson – Ehle were not linked and the genes assorted independently. Later, researchers discovered the third gene that also affect the kernel colour of wheat. The three independent pairs of alleles were involved in wheat kernel colour. Nilsson – Ehle found the ratio of 63 red : 1 white in F₂ generation – 1 : 6 : 15 : 20 : 15 : 6 : 1 in F₂ generation.

Question 35.
Differentiate continuous variation with discontinuous variation.
Answer:
1. Discontinuous Variation: Within a population there are some characteristics which show a limited form of variation.
Example: Style length in Primula, plant height of garden pea. In discontinuous variation, the characteristics are controlled by one or two major genes which may have two or more allelic forms.

These variations are genetically determined by inheritance factors. Individuals produced by this variation show differences without any intermediate form between them and there is no overlapping between the two phenotypes. The phenotypic expression is unaffected by environmental conditions. This is also called as qualitative inheritance

2. Continuous Variation: This variation may be due to the combining effects of environmental and genetic factors. In a population most of the characteristics exhibit a complete gradation, from one extreme to the other without any break. Inheritance of phenotype is determined by the combined effects of many genes, (polygenes) and environmental factors. This is also known as quantitative inheritance.
Example: Human height and skin color.

Question 36.
Explain with an example how single genes affect multiple traits and alleles the phenotype of an organism.
Answer:
In Pleiotropy, the single gene affects multiple traits and alter the phenotype of the organism. The Pleiotropic gene influences a number of characters simultaneously and such genes are called a pleiotropic gene. Mendel noticed pleiotropy while performing a breeding experiment with peas (Pisum sativum).

Peas with purple flowers, brown seeds, and dark spot on the axils of the leaves were crossed with a variety of peas having white flowers, light-colored seeds, and no spot on the axils of leaves, the three traits for flower colour, seed colour, and leaf axil spot all were inherited together as a single unit. This is due to the pattern of inheritance where the three traits were controlled by a single gene with dominant and recessive alleles. Example: sickle cell anemia.

Question 37.
Bring out the inheritance of the chloroplast gene with an example.
Answer:
Chloroplast Inheritance

It is found in the 4 ‘O’Clock plant (Mirabilis jalapa). In this, there are two types of variegated leaves namely dark green-leaved plants and pale green-leaved plants. When the pollen of dark green leaved plant (male) is transferred to the stigma of pale green leaved plant (female) and pollen of pale green leaved plant is transferred to the stigma of dark green leaved plant, the F₁ generation of both the crosses must be identical as per Mendelian inheritance. But in the reciprocal cross, the F₁ plant differs from each other.

In each cross, the F plant reveals the character of the plant which is used as a female plant. This inheritance is not through the nuclear gene. It is due to the chloroplast gene found in the ovum of the female plant which contributes to the cytoplasm during fertilization since the male gamete contributes only to the nucleus but not the cytoplasm.

Samacheer Kalvi 12th Bio Botany Classical Genetics Additional Questions and Answers

1 – Mark Questions

Question 1.
The term ‘Genetics’ was introduced by __________
(a) Gregor Mendel
(b) Bateson
(c) Hugo de vries
(d) Carl Correns
Answer:
(b) Bateson

Question 2.
Which is not a correct statement?
(A) Variations are the raw materials for evolution
(B) Variations provide genetic material for natural selection
(C) It helps the individual to adapt to the changing environment
(D) Variations allow breeders to improve the crop field
(a) A and D
(b) B only
(c) C and D
(d) nono of the above
Answer:
(d) nono of the above

Question 3.
The process of removal of anthers from the flower is called __________
Answer:
Emasculation

Question 4.
An allele is __________
(a) another word for a gene
(b) alternate forms of a gene
(c) morphological expression of a gene
(d) genetic
Answer:
(b) alternate forms of a gene

Question 5.
Gregor Mendel __________
(i) was born in Czechoslovakia
(ii) did his experiments in Pisum fulvum
(iii) was the first systemic researcher in genetics
(iv) Published his results in the paper “Experiments on Plant Hybrids”
(a) All are correct
(b) (ii),(iii), (iv) are correct
(c) (i), (iii),(iv) are correct
(d) (i), (iii),(iv) are correct
Answer:
(c) (i), (iii),(iv) are correct

Question 6.

Answer:
A – (ii) B – (iv) C – (iii) D – (i)

Question 7.
How many characters studied by Mendel in pisum sativum
(a) Three
(b) Five
(c) Seven
(d) Nine
Answer:
(c) Seven

Question 8.
Mendel’s work were rediscovered by __________
(a) Hugo de Vries
(b) Tschermak
(c) Carl Correns
(d) All the above
Answer:
(d) All the above

Question 9.
Crossing of F₁, to any one of the parent refers to __________
(a) selling
(b) back cross
(c) test cross
(d) all of the above
Answer:
(b) back cross

Question 10.
Match the following

Answer:
A – (ii)
B – (iv)
C – (i)
D – (iii)

Question 11.
In an intergenic interaction, the gene that suppresses the pherotype of a gene is said to Crossing of F, to any one of the parent refers to __________
(a) Dominant
(b) Inhibitory
(c) Epistatic
(d) Hypostatic
Answer:
(c) Epistatic

Question 12.
Assertion (A) : Test cross is done between F₂ hybrid with F₁ recessive
Reason (R) : It helps to identify the homozygosity of hybrids
(a) A and R are correct R explains A
(b) A and R are incorrect
(c) A is correct R is incorrect
(d) A is incorrect R is correct
Answer:
(b) A and R are incorrect

Question 13.
Assertion (A) : Codominance is an example for intragenic interaction
Reason (R) : Interaction take place between the alleles of same gene
(a) A and R are correct R explains A
(b) A and R are incorrect
(c) A is correct R is incorrect
(d) A is incorrect R is correct
Answer:
(a) A and R are correct R explains A

Question 14.
Assertion (A) : Pleiotropic gene affects multiple traits
Reason (R) : ABO blood group is an example for Pleiotropism
(a) A and R are correct R explains A
(b) A and R are incorrect
(c) A is correct R is incorrect
(d) A is incorrect R is correct
Answer:
(c) A is correct R is incorrect

Question 15.
Assertion (A) : Cytoplasmic male sterility is a Mendelian inheritance
Reason (R) : The genes for cytoplasmic male sterility in peal maize is located at mitochondrial DNA
(a) A and R are correct R explains A
(b) A and R are incorrect
(c) A is correct R is incorrect
(d) A is incorrect R is correct
Answer:
(d) A is incorrect R is correct

Question 16.
What is the phenotypic ratio in case of incomplete dominance
(a) 9 : 7
(b) 3 : 1
(c) 1 : 2 : 1
(d) 1 : 1 : 1 : 1
Answer:
(c) 1 : 2 : 1

Question 17.
Identify the mismatched pair
(a) Chloroplast inheritance – Gregor Mendel
(b) Polygenic inheritance – H. Nilsson
(c) Lethal genes – E. Baur
(d) Incomplete dominance – Carl Correns
Answer:
(a) Chloroplast inheritance – Gregor Mendel

Question 18.
Statement 1 : Intergenic gene interaction occurs between alleles at same locus
Statement 2 : Co-dominance is an example for intergenic gene interaction
(a) Statement 1 is correct & Statement 2 is incorrect
(b) Statement 1 is incorrect & Statement 2 is correct
(c) Both Statements 1 & 2 are correct
(d) Both Statements 1 & 2 are incorrect
Answer:
(c) Both Statements 1 & 2 are correct

Question 19.
Statement 1 : Test cross is done between F₁ individual with homozygous recessive
Statement 2 : If F₁ individual is homozygous, the rate of a monohybrid cross will be 1:1
(a) Statement 1 is correct & Statement 2 is incorrect
(b) Statement 1 is incorrect & Statement 2 is correct
(c) Both Statements 1 & 2 are correct
(d) Both Statements 1 & 2 are incorrect
Answer:
(a) Statement 1 is correct & Statement 2 is incorrect

Question 20.
Identify the incorrect statement
Answer:
(a) In incomplete dominance, the traits are blended not the genes
(b) Incomplete dominance is noticed in Mirabilis jalapa by Carl Correns
(c) It is a type of Intragenic gene interaction
(d) Incomplete dominance F₂ ratio is 1 : 3 : 1
Answer:
(d) Incomplete dominance F₁ ratio is 1 : 3 :1

Question 21.
In case of co-dominance, monohybrid F_{1 __________} is 1 : 2 : 1
(a) Genotype ratio
(b) Phenotype ratio
(c) Both genotype & Phenotype ratio
(d) Ratio is wrong
Answer:
(c) Both genotype & Phenotype ratio

Question 22.
Identify the wrong statement (s)
(i) Monohybrid cross involve the inhertance of teo alleles of a gene
(ii) The dwarf traits reappeared in F₂
(iii) Law of dominance was proved by monohybrid cross
(iv) F₁ monohybrid was an hererozygous
(a) i and ii
(b) iii and iv
(c) i only
(d) none of the above
Answer:
(d) none of the above

Question 23.
Result of incomplete dominance is __________
(а) Intermediate genotype
(b) Intermediate phenotype
(c) Recessive phenotype
(d) Epistasis
Answer:
(b) Intermediate phenotype

Question 24.
Heterozygous Tall mono hybrid is cross with homozygous dwarf. What will be characteristic of offspring?
(a) 25 % recessive 75% dominant
(b) 75 % recessive 25% dominant
(c) 50 % recessive 50% dominant
(d) All are dominance
Answer:
(c) 50 % recessive 50% dominant

Question 25.
ABO blood group is a classical example for __________
(a) Polygenic inheritance
(b) Incomplete Dominance
(c) Epistasis
(d) Dominance
Answer:
(d) Dominance

Question 26.
RR (Red) flower of Mirabilis is crossed with White (WW) flowers. Resultant offspring are pink RW. This is an example of __________
(a) Epistasis
(b) Co-dominance
(c) Incomplete dominance
(d) Pleiotropism
Answer:
(c) Incomplete dominance

Question 27.
How many genetically different gametes are produced by a plant have genotype TtYyRr?
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(d) 8

Question 28.
When a single gene influences multiple traits then the phenomenon is called __________
(a) Pleiotropy
(b) Polygenic inheritance
(c) Epistasis
(d) Atavism
Answer:
(a) Pleiotropy

Question 29.
According to Mendel which character shown dominance.
(a) Yellow flower color
(b) Yellow cotyledon color
(c) Wrinkled seeds
(d) Inflated pod
Answer:
(d) Inflated pod

Question 30.
Ratio of recessive epistasis is __________
(a) 12 : 3 : 1
(b) 9 : 7
(c) 9 : 3 : 4
(d) 9 : 6 : 1
Answer:
(c) 9 : 3 : 4

Question 31.
According to Mendel, which is not a dominant trait?
(a) Wrinkled seeds
(b) Purple flower
(c) Inflated pod form
(d) Axial flower portion
Answer:
(a) Wrinkled seeds

Question 32.
Identify the allelic interaction.
(a) Domination epistasis
(b) Co – dominance
(c) Recessive epistasis
(d) Duplicate genes
Answer:
(b) Co – dominance

Question 33.
Gametes are never hybrid’ is concluded by __________
(a) Law of dominance
(b) Law of segregation
(c) Law of independent environment
(d) Law of lethality
Answer:
(b) Law of segregation

Question 34.
Factor hypothesis was proposed by __________
(a) Reginald Punnett
(b) W. Bateson
(c) Gregor Mende
(d) Carl Correns
Answer:
(b) W. Bateson

Question 35.
The 1:2:1 ratio of co-dominance process Mendel’s __________
(a) Law of dominance
(b) Law of recessiveness
(c) Law of segregation
(d) Law of independent assortment
Answer:
(b) Law of recessiveness

Question 36.
Match the following:
Epistatic interaction Example
(A) Complementary genes (i) Seed capsule in xxxxx
(B) Supplementary genes (ii) Leaf color in rice plant
(C) Inhibitory genes (iii) Grain color in maize
(D) Duplicate genes (iv) Flower color in sweet peas
Answer:
A – (iv)
B – (iii)
C – (ii)
D – (i)

2 – Mark Questions

Question 1.
Who coined the term genetics? Also define it.
Answer:
“Genetics” is the branch of biological science which deals with the mechanism of transmission of characters from parents to off springs. The term Genetics was introduced by W. Bateson in 1906.

Question 2.
Name the four major subdisciplines of genetics.
Answer:
(a) Classical genetics
(b) Molecular genetics
(c) Population genetics
(d) Quantitative genetics

Question 3.
Define Heredity and variations.
Answer:
Heredity : Heredity is the transmission of characters from parents to off springs.
Variations : The organisms belonging to the same natural population or species that shows a difference in the characteristics is called variation.

Question 4.
Mendel’s theory is a particulate theory – justify.
Answer:
Mendel’s theory of inheritance, known as the Particulate theory, establishes the existence of minute particles or hereditary units or factors, which are now called as genes.

Question 5.
Which organism was studied by Gregor Mendel? How many traits does he considered on his experiments?
Answer:
Gregor Mendel selected seven pairs of characters in Pisum sativum (garden pea)

Question 6.
Name any four characters of pisum sativum that was studied by Mendel.
Answer:
Seed shape, flower color, flower position & pod color.

Question 7.
Define the terms

1. Emasculation
2. Alleles.

Answer:

1. Emasculation : Removal of anthers from the flower
2. Alleles : Alternate forms of a gene

Question 8.
Name the first and second law of Mendel.
Answer:

1. The Law of Dominance
2. The Law of Segregation

Question 9.
What is genotype & phenotype?
Answer:
genotype & phenotype

1. The term genotype is the genetic constitution of an individual.
2. The term phenotype refers to the observable characteristic of an organism.

Question 10.
Write the phenotypic and genotypic ratio of monohybrid cross.
Answer:
(a) Phenotypic ratio = 3:1.
(b) Genotypic ratio =1 : 2 : 1

Question 11.
What is test cross? Why it is done?
Answer:

1. Test cross is crossing an individual of unknown genotype with a homozygous recessive.
2. Test cross is used to identify whether an individual is homozygous or heterozygous for dominant character.

Question 12.
State the law of independent assortment.
Answer:
When two pairs of traits are combined in a hybrid, segregation of one pair of characters is independent to the other pair of characters. Genes that are located in different chromosomes assort independently during meiosis.

Question 13.
Give the phenotypic ratio of
(a) Dihybrid cross
(b) Dihybrid test cross
Answer:
(a) Dihybrid cross ratio = 9 : 3 : 3 : 1
(b) Dihybrid test cross ratio = 1 : 1 : 1 : 1

Question 14.
RrYyf (F₁ hybrid)  rryy (recessive parent). Name the type of cross. Mention its ratio.
Answer:
Dihybrid test cross and the ratio is 1 : 1 : 1 : 1

Question 15.
How many types of gametes are produced by a dihybrid plant. If the same plant is self fertilized, how many second generation offsprings are developed?
Answer:
Four different gametes are produced by a dihybrid plant and on selfing, it yield 16 off springs.

Question 16.
Write the phenotypic ratio of trihybrid cross.
Answer:
27 : 9 : 9 : 9 : 3 : 3 : 3 : 1

Question 17.
Define gene interaction.
Answer:
A single phenotype is controlled by more than one set of genes, each of which has two or more alleles. This phenomenon is called Gene Interaction.

Question 18.
Classify gene interactions with an example.
The gene interactions may be
(a) Intragenic gene interaction. E.g.: Codominance
(b) Intergenic gene interaction. E.g.: Epistasis

Question 19.
Provide any four intergenic gene interactions.
Answer:
(a) Incomplete dominance
(b) Codominance
(c) Multiple alleles
(d) Pleiotropic genes are common examples for intragenic interaction.

Question 20.
Define intragenic interaction
Answer:
Interactions take place between the alleles of the same gene i.e., alleles at the same locus is called intragenic or intralocus gene interaction.

Question 21.
In which plant does the incomplete dominance was studied by Carl Correns? Write the ratio of the cross.
Answer:
Mirabilis Jalapa (4 o’ clock plant). Incomplete dominance ratio is 1 : 2 : 1

Question 22.
What are lethal alleles? Give example.
Answer:
An allele which has the potential to cause the death of an organism is called a Lethal Allele.
E.g : Recessive lethality in Antirrhinum species.

Question 23.
Give the proper terminologies for the following statement
(a) Single gene affecting multiple traits
(b) Single trait affected by many genes.
Answer:
(a) Pleiotropism
(b) Poly genic inheritance

Question 24.
What is intergenic gene interactions? Give example
Answer:
Interlocus interactions take place between the alleles at different loci i.e. between alleles of different genes.
Eg: Dominant Epistasis

Question 25.
Name any two extranuclear inheritance.
Answer:
(a) Chloroplast inheritance
(b) Mitrochondrial inheritance

Question 26.
What are plasmogenes?
Answer:
Plasmogenes are independent, self-replicating, extra-chromosomal units located in cytoplasmic organelles, chloroplast and mitochondrion

Question 27.
What are extra nuclear inheritance?
Answer:
Certain characters/traits are governed and inherited by genes located in cytoplasmic organelles (chloroplast or mitochondrion) other than nucleus. This is called extra nuclear inheritance.

Question 28.
Why extranuclear inheritance is called as cytoplasmic inheritance.
Answer:
Extra nuclear inheritance is due to genes located on the cytoplasmic organelles such as chloroplast and mitochondrion hence it is called cytoplasmic inheritance.

Question 29.
What is cytoplasmic male sterility?
Answer:
In Sorghum vulgare (Pearl maize), the gene located for the sterility pollens are located in the mitochondrial DNA. This phenomenon is called as cytoplasmic male sterility.

3 – Mark Questions

Question 30.
Point out any three importance of variations.
Answer:

1. They help the individuals to adapt themselves to the changing environment.
2. Variations allow breeders to improve better yield, quicker growth, increased resistance and lesser input.
3. They constitute the raw materials for evolution.

Question 31.
Why Mendel selected pea plants for his experiments.
Answer:
He choose pea plant because,

1. It is an annual plant and has clear contrasting characters that are controlled by a single gene separately.
2. Self-fertilization occurred under normal conditions in garden pea plants. Mendel used both self-fertilization and cross-fertilization.
3. The flowers are large hence emasculation and pollination are very easy for hybridization.

Question 32.
State the law of segregation.
Answer:
The Law of Segregation (Law of Purity of gametes): Alleles do not show any blending. During the formation of gametes, the factors or alleles of a pair separate and segregate from each other such that each gamete receives only one of the two factors. A homozygous parent produces similar gametes and a heterozygous parent produces two kinds of gametes each having one allele with equal proportion. Gametes are never hybrid.

Question 33.
How many types of gametes are produced by heterozygous dihybrid plant with a genotypeRrYy? Write them.
Answer:
Four gametes – RY, Ry, rY, ry

Question 34.
Define trihybrid cross. Mention its F₂ phenotypic ratio.
Answer:
A cross between homozygous parents that differ in three gene pairs (i.e. producing trihybrids) is called trihybrid cross, F₂ Phenotypic ratio -27 : 9 : 9 : 9 : 3 : 3 : 3 : 1

Question 35.
Define co-dominance. How it is proved by using Gossypium species?
Answer:
The phenomenon in which two alleles are both expressed in the heterozygous individual is known as codominance. The codominance was demonstrated in plants with the help of electrophoresis or chromatography for protein or flavonoid substance.

Example: Gossypium hirsutum and Gossypium sturtianum, their F₁ hybrid (amphiploid) was tested for seed proteins i by electrophoresis. Both the parents have different banding patterns for their seed proteins. In hybrids, additive banding pattern was noticed. Their hybrid shows the presence of both the types of proteins similar to their parents.

Question 36.
Give an account on cytoplasmic male sterility.
Answer:
Male sterility found in pearl maize (Sorgum vulgare) is the best example for mitochondrial cytoplasmic inheritance. So it is called cytoplasmic male sterility. In this, male sterility is inherited maternally. The gene for cytoplasmic male sterility is found in the mitochondrial DNA.

Question 37.
Write a short note on Atavism.
Answer:
Atavism is a modification of a biological structure whereby an ancestral trait reappears after having been lost through evolutionary changes in the previous generations. Evolutionary traits that have disappeared phenotypically do not necessarily disappear from an organism’s DNA. The gene sequence often remains, but is inactive.

Such an unused gene may remain in the genome for many generations. As long as the gene remains intact, a fault in the genetic control suppressing the gene can lead to the reappearance of that character again. Reemergence of sexual reproduction in the flowering plant Hieracium pilosella is the best example for Atavism in plants.

5 – Mark Questions

Question 38.
Explain Dihybrid cross in pea plant.
Answer:
The crossing of two plants differing in two pairs of contrasting traits is called dihybrid cross. In dihybrid cross, two characters (colour and shape) are considered at a time. Mendel considered the seed shape (round and wrinkled) and cotyledon colour (yellow & green) as the two characters. In seed shape round (R) is dominant over wrinkled (r); in cotyledon colour yellow (Y) is dominant over green (y).

Hence the pure breeding round yellow parent is represented by the genotype RRYY and the pure breeding green wrinkled parent is represented by the genotype rryy. During gamete formation the paired genes of a character assort out ‘ independently of the other pair. During the F₁ x F, fertilization each zygote with an equal probability receives one of the four combinations from each parent. The resultant gametes thus will be genetically different and they are of the following four types:

(1) Yellow round (YR) – 9/16
(2) Yellow wrinkled (Yr) – 3/16
(3) Green round (yR) – 3/16
(4) Green wrinkled (yr) -1/16

These four types of gametes of F₁ dihybrids unite randomly in the process of fertilization and produce sixteen types of individuals in F₂ in the ratio of 9:3:3:1 as shown in the figure. Mendel’s 9:3:3:1 dihybrid ratio is an ideal ratio based on the probability including segregation, independent assortment and random fertilization. In sexually reproducing organism / plants from the garden peas to human beings, Mendel’s findings laid the foundation for understanding inheritance and revolutionized the field of biology. The dihybrid cross and its result led Mendel to propose a second set of generalisations that we called Mendel’s Law of independent assortment.

Question 39.
How does the wrinkled gene make Mendel’s peas wrinkled? Find out the molecular explanation.
Answer:
The protein called starch branching enzyme (SBEI) is encoded by the wild-type allele of the gene (RR) which is dominant. When the seed matures, this enzyme SBEI catalyzes the formation of highly branched starch molecules. Normal gene (R) has become interrupted by the insertion of extra piece of DNA (0.8 kb) into the gene, resulting in allele. In the homozygous mutant form of the gene (R) which is recessive, the activity of the enzyme SBEI is lost resulting in wrinkled peas.

The wrinkled seed accumulates more sucrose and high water content. Hence Ore osmotic pressure inside the seed rises. As a result, the seed absorbs more water and when it matures it loses water as it dries. So it becomes wrinkled at maturation. When the seed has at least one copy of normal dominant gene heterozygous, the dominant allele helps to synthesize starch, amylopectin an insoluble carbohydrate, with the osmotic balance which minimises the loss of water resulting in smooth structured round seed.

Question 40.
Describe incomplete dominance exhibited by Mirabilis jalapa.
Answer:
The German Botanist Carl Correns’s (1905) Experiment – In 4 O’ clock plant, Mirabilis jalapa when the pure breeding homozygous red (R¹R¹) parent is crossed with homozygous white (R²R²), the phenotype of the F₁ hybrid is heterozygous pink (R¹R²). The F₁ heterozygous phenotype differs from both the parental homozygous phenotype. This cross did not exhibit the character of the dominant parent but an intermediate colour pink. When one allele is not completely dominant to another allele it shows incomplete dominance. Such allelic interaction is known as incomplete dominance. F₁ generation produces intermediate phenotype pink coloured flower.

When pink coloured plants of F₁ generation were interbred in F₂ both phenotypic and genotypic ratios were found to be identical as 1 : 2 :1(1 red: 2 pink: 1 white). Genotypic ratio is 1 R¹ R¹ : 2 R¹R² : 1 R²R². From this we conclude that the alleles themselves remain discrete and unaltered proving the Mendel’s Law of Segregation. The phenotypic and genotypic ratios are the same. There is no blending of genes. In the F¹ generation R¹ and R² genes segregate and recombine to produce red, pink and white in the ratio of 1 : 2 : 1. R¹ allele codes for an enzyme responsible for the formation of red pigment. R² allele codes for defective enzyme.

R¹ and R² genotypes produce only enough red pigments to make the flower pink. Two R¹ R² are needed for producing red flowers. Two R²R² genes are needed for white flowers. If blending had taken place, the original pure traits would not have appeared and all F₂ plants would have pink flowers. It is very clear that Mendel’s particulate inheritance takes place in this cross which is confirmed by the reappearance of original phenotype in F₂.

Higher Order Thinking Skills (HOTs) Questions

Question 1.
A yellow colour flower plant indicated by YY is crossed with white color flower plant denoted by yy.
(a) following the Mendelian inheritance pattern, what would be the flower color is first filial generation?
(b) Which Mendelian principle is illustrated in this cross?
(c) Derive the cross and state the phenotypic ratio of yellow flowers to white flowers in F₂ generation?
Answer:
(a) F₁ plants produce yellow colour flower plants.
(b) Law of dominance and Law of segregation
(c)

Question 2.
Mala is a genetic research student. She was given a plant to identify whether it is a homozygous or heterozygous for a particular trait. How will she proceed further?
Answer:
To identify the plant genotype whether homozygous or heterozygous Mala can perform test cross, where the individual is crossed with homozygous recessive for the trait. If the plant is heterozygous then the resultant progenies would be in the ratio 50:50

Question 3.
In the chart given below, ‘AA’ are the genes located in a chromosome of Pisum sativum.
Answer:

Observe the chart and mention the genetic phenomenon does it indicates.
Pleitrophy – A single gene affecting many traits. Here the single gene AA controls the traits – for flower colour, seed colour and leaf axil spot.

Question 4.
Give the F₂ phenotypic ratio of
(a) Supplementary genes
(b) Complementary genes
(c) Dominant epistasis
Answer:
(a) Supplementary genes – 9 : 3 : 4
(b) Complementary genes – 9 : 7
(c) Dominant epistasis -12 : 3 : 1

Question 5.
Name the respective pattern of inheritance where F₁ phenotype
(a) resembles any one of the two parents
(b) is an intermediate between two parental traits.
Answer:
(a) Dominance
(b) Incomplete dominance

Students can Download Accountancy Chapter 4 Goodwill in Partnership Accounts Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 4 Goodwill in Partnership Accounts

Samacheer Kalvi 12th Accountancy Goodwill in Partnership Accounts Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Which of the following statements is true?
(a) Goodwill is an intangible asset
(b) Goodwill is a current asset
(c) Goodwill is a fictitious asset
(d) Goodwill
Answer:
(a) Goodwill is an intangible asset

Question 2.
Super profit is the difference between ………………..
(a) Capital employed and average profit
(b) Assets and liabilities
(c) Average profit and normal profit
(d) Current year’s profit and average profit
Answer:
(c) Average profit and normal profit

Question 3.
The average rate of return of similar concerns is considered as ………………..
(a) Average profit
(b) Normal rate of return
(c) Expected rate of return
(d) None of these
Answer:
(b) Normal rate of return

Question 4.
Which of the following is true?
(a) Super profit = Total profit / number of years
(b) Super profit = Weighted profit / number of years
(c) Super profit = Average profit – Normal profit
(d) Super profit = Average profit x Years of purchase
Answer:
(c) Super profit = Average profit – Normal profit

Question 5.
Identify the incorrect pair ………………..
(a) Goodwill under Average profit method – Average profit x Number of years of purchase
(b) Goodwill under Super profit method – Super profit x Number of years of purchase
(c) Goodwill under Annuity method – Average profit x Present value of annuity factor
(d) Goodwill under Weighted average profit method – Weighted average profit x Number of years of purchase
Answer:
(c) Goodwill under Annuity method – Average profit x Present value of annuity factor

Question 6.
When the average profit is ₹ 25,000 and the normal profit is ₹ 15,000, super profit is ………………..
(a) ₹ 25,000
(b) ₹ 5,000
(c) ₹ 10,000
(d) ₹ 15,000
Answer:
(c) ₹ 10,000

Question 7.
Book profit of 2017 is ₹ 35,000; non – recurring income included in the profit is ₹ 1,000 and abnormal loss charged in the year 2017 was ₹ 2,000, then the adjusted profit is ………………..
(a) ₹ 36,000
(b) ₹ 35,000
(c) ₹ 38,000
(d) ₹ 34,000
Answer:
(a) ₹ 36,000

Question 8.
The total capitalised value of a business is ₹ 1,00,000; assets are ₹ 1,50,000 and liabilities are ₹ 80,000. The value of goodwill as per the capitalisation method will be ………………..
(a) ₹ 40,000
(b) ₹ 70,000
(c) ₹ 1,00,000
(d) ₹ 30,000
Answer:
(d) ₹ 30,000

II. Very Short Answer Questions

Question 1.
What is goodwill?
Answer:
Goodwill is the good name or reputation of the business which brings benefit to the business. It enables the business to earn more profit. It is the present value of a firm’s future excess earnings. It is an intangible asset as it has no physical existence.

Question 2.
What has acquired goodwill?
Answer:
Goodwill acquired by making payment in cash or kind is called acquired or purchased goodwill. When a firm purchases an existing business, the price paid for purchase of such business may exceed the net assets (Assets – Liabilities) of the business acquired.

Question 3.
What is a super profit?
Answer:
Super profit is the excess of average profit over the normal profit of a business.
Super profit = Average profit – Normal profit.
Average profit is calculated by dividing the total of adjusted actual profit of certain number of years by the total number of such years. Normal profit is the profit earned by the similar business firms under normal conditions.
Normal profit = Capital employed x Normal rate of return Capital employed = Fixed assets + Current assets – Current liabilities

Question 4.
What is the normal rate of return?
Answer:
Normal rate of return = It is the rate at which profit is earned by similar business entities in the industry under normal circumstances.

Question 5.
State any two circumstances under which goodwill of a partnership firm is valued?
Answer:

1. When there is a change in the profit-sharing ratio.
2. When a new partner is admitted into a firm.
3. When an existing partner retires from the firm or when a partner dies.
4. When a partnership firm is dissolved.

III. Short Answer Questions

Question 1.
State any six factors determining goodwill.
Answer:

1. The profitability of the firm
2. Favourable location of the business enterprises
3. good quality of goods or services offered
4. Tenure of the business enterprises
5. Efficiency of management.
6. Degree of Competition

Question 2.
How is goodwill calculated under the super-profits method?
Answer:
1. Purchase of super profit method: Goodwill is calculated by multiplying the super profit by a certain number of years of purchase.
Goodwill = super profit x No. of years of purchase

2. Annuity method: The value of goodwill is calculated by multiplying the super profit with the present value of the annuity.
Goodwill = Super profit x Present value annuity factor

3. Capitalisation of super profit method: Goodwill = x 100

Question 3.
How is the value of goodwill calculated under the capitalisation method?
Answer:
Capitalisation method:
Under Capitalisation method, goodwill is the excess of capitalised value of average profit of the business over the actual capital employed in the business.
Goodwill = Total capitalised value of the business – Actual capital employed
The total capitalised value of the business is calculated by capitalising the average profits on the basis of the normal rate of return.
Capitalised value of the business = x 100
Actual capital employed = Fixed assets (excluding goodwill) + Current assets – Current liabilities

Question 4.
Compute average profit from the following information.
Answer:
Calculation of Average profit:
2016 – ₹ 8,000; 2017 – ₹ 10,000; 2018 – ₹ 9,000

Valuation of goodwill = ₹ 9,000

Question 5.
Calculate the value of goodwill at 2 years purchase of average profit when the average profit is ₹ 15,000.
Answer:
Goodwill: ₹ 30,000

IV. Exercises

Simple average profit method:
Question 1.
The following are the profits of a firm in the last five years:

Answer:

Valuation of goodwill = Average profit x No. of years purchase
= ₹ 12,000 x 2 years
= ₹ 24,000

Question 2.
From the following information, calculate the value of goodwill on the basis of 3 years purchase of average profits of last four years.

Answer:
Calculation of goodwill:

Valuation of goodwill = Average profit x No. of years purchase = ₹ 4,000 x 3
= ₹ 12,000

Question 3.
From the following information relating to a partnership firm, find out the value of its goodwill based on 3 years purchase of average profits of the last 4 years:

1. Profits of the years 2015, 2016, 2017 and 2018 are ₹ 10, 000, ₹ 12, 500, ₹ 12, 000 and ₹ 11, 500, respectively.
2. The business was looked after by a partner and his fair remuneration amounts to ₹ 1, 500 per year. This amount was not considered in the calculation of the above profits.

Answer:
Valuation of goodwill
Calculation of average profit Year Profit

(-) Remuneration = ₹ 1,500
Net average profit = ₹ 10,000
Valuation of goodwill = Average profit x No. of years purchase
= ₹ 10,000 x 3
= ₹ 30,000

Question 4.
From the following information relating to Sridevi enterprises, calculate the value of goodwill on the basis of 4 years purchase of the average profits of 3 years.

1. Profits for the years ending 31^st December 2016, 2017 and 2018 were ₹ 1,75,000, ₹ 1,50,000 and ₹ 2,00,000, respectively.
2. A non – recurring income of ₹ 45,000 is included in the profits of the year 2016.
3. The closing stock of the year 2017 was overvalued by ₹ 30,000.

Answer:
Calculation of adjusted profit

Average profit = <
Average profit = \(\frac { 4, 80, 000 }{ 3 }\) = ₹ 1,60,000
Goodwill = Average profit x No. of year purchase = ₹ 1,60,000 x 4
= ₹ 64,00,000

Question 5.
The following particulars are available in respect of the business carried on by a partnership firm:

1. Profits earned: 2016: ₹ 25,000; 2017: ₹ 23,000 and 2018: ₹ 26,000.
2. Profit of 2016 includes a non – recurring income of ₹ 2,500.
3. Profit of 2017 is reduced by ₹ 3,500 due to stock destroyed by fire.
4. The stock was not insured. But, it is decided to insure the stock in future. The insurance premium is estimated to be ₹ 250 per annum.

You are required to calculate the value of goodwill of the firm on the basis of 2 years purchase of average profits of the last three years.
Answer:
Calculation of adjusted profit

Total profit = 22,250 + 26, 250 + 25, 750 = ₹ 74, 250

Valuation of goodwill = Average profit x No.of year purchase
= ₹ 24, 750 x 2 years = ₹ 49, 500

Weighted average profit method:
Question 6.
Find out the value of goodwill at three years purchase of weighted average profit of last four years.

Answer:
Calculation of weighted average profit

Goodwill = Weighted average profit x No. of years purchase
= ₹ 15,400 x 3 = ₹ 46,200

Purchase of super profit method:
Question 7.
From the following details, calculate the value of goodwill at 2 years purchase of super profit:

1. Total assets of a firm are ₹ 5,00,000
2. The liabilities of the firm are ₹ 2,00,000
3. Normal rate of return in this class of business is 12.5 %.
4. Average profit of the firm is ₹ 60,000.

Answer:
Capital employed = fixed assets + current assets – current liabilities
= 5, 00, 000 – 2, 00, 000 = 3, 00, 000
Normal profit = Capital employed x Normal rate of return
= 3,00,000 x \(\frac { 12.5 }{ 100 }\) = 3, 75, 000
Super profit = Average profit – Normal profit
= 60, 000 – 37, 500 = 22, 500
Goodwill = Super profit x Number of years of purchase
= ₹ 22,500 x 2
= ₹ 45,000

Question 8.
A partnership firm earned net profits during the last three years as follows:
2016: ₹ 20,000; 2017: ₹ 17,000 and 2018: ₹ 23,000
The capital investment of the firm throughout the above mentioned period has been ₹ 80,000. Having regard to the risk involved, 15% is considered to be a fair return on capital employed in the business. Calculate the value of goodwill on the basis of 2 years purchase of super profit.
Answer:
Calculation of average profit Year Profit

Normal profit = Capital employed x Normal rate of return
= 80,000 x \(\frac { 15 }{ 100 }\) = 12,000
Super profit = 8,000
Valuation of goodwill = Super profit x No. of years purchase
= ₹ 8,000 x 2
= ₹ 16,000

Annuity method:
Question 9.
From the following information, calculate the value of goodwill under annuity method:

1. Average profit – ₹ 14,000
2. Normal profit – ₹ 4,000
3. Normal rate of return – 15%
4. Years of purchase of goodwill – 5

Present value of ₹ 1 for 5 years at 15% per annum as per the annuity table is 3.352
Answer:
Super profit = Average profit – Normal profit
= 14, 000 – ₹ 4, 000 = ₹ 10, 000
Goodwill = Super profit x Present value of annuity factor
= ₹ 10,000 x 3.352 = ₹ 33, 520

Capitalisation of super profit method:
Question 10.
Find out the value of goodwill by capitalising super profits:

1. Normal Rate of Return 10%
2. Profits for the last four years are ₹ 30,000, ₹ 40,000, ₹ 50,000 and ₹ 45,000.
3. Anon – recurring income of ₹ 3,000 is included in the above mentioned profit of ₹ 30,000.
4. Average capital employed is ₹ 3,00,000.

Answer:

Average profit = = \(\frac { 1, 62, 000 }{ 4 }\)
= ₹ 40,500
Normal profit = Capital employed x Normal rate of return
= 3,00,00 x \(\frac { 10 }{ 100 }\) = 30,000
Super profit = 10,500
Capitalisation super profit method = x 100
= \(\frac { 10, 500 }{ 10 }\) = ₹ 1, 05, 000

Capitalisation method:
Question 11.
From the following information, find out the value of goodwill by capitalisation method :

1. Average profit ₹ 20, 000
2. Normal rate of return 10%
3. Tangible assets of the firm ₹ 2, 20, 000
4. Liabilities of the firm ₹ 70, 000

Answer:
Capital Assets – Liabilities
= 2, 20, 000 – 70, 000 = ₹ 1, 50, 000
Capitalised value of business = x 100
= \(\frac { 20, 000 }{ 10 }\) x 100 = ₹ 2, 00, 000
Value of goodwill = Total capitalised average profit – Capital employed
= 2, 00, 000 – 1, 50, 000
= ₹ 50,000

Samacheer Kalvi 12th Accountancy Goodwill in Partnership Accounts Additional Questions and Answers

I. Choose the correct answer

Question 1.
Goodwill is valued under ………………
(a) Average profit method
(b) Super profit method
(c) Capitalisation method
(d) All of these
Answer:
(d) All of these

Question 2.
Average profit method can be further divided ………………
(a) Simple average profit
(b) Weighted average profit
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 3.
Super profit is
(a) Average profit – Normal profit
(b) Normal profit – Average profit
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Average profit – Normal profit

Question 4.
Kinds of goodwill ………………
(a) Purchased goodwill
(b) Self – generated goodwill
(c) None of these
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Question 5.
Nature of goodwill is ………………
(a) Reputation of business firm
(b) Profit of firm
(c) total asset of firm
(d) None of these
Answer:
(a) Reputation of business firm

Question 6.
Factor of goodwill is ………………
(a) Location of the business
(b) Efficient management
(c) Nature of the goods
(d) All of these
Answer:
(b) Efficient management

Question 7.
Arrange the following in ascending or descending order:
1. Super profit = Weighted average profit x No. of years purchase
2. Capitalistion method = x 100
3. Weighted Average method = Average profit – Normal profit
4. Capitalisation super profit = Total profit/No. of years purchase
(a) 1, 2, 3, 4
(b) 2, 4, 1, 2
(c) 3, 4, 1, 2
(d) 4, 3, 2, 1
Answer:
(c) 3, 4, 1, 2

Question 8.
Goodwill of the firm on the basis of 2 years purchase of average profit of the last 3 years is ₹ 25,000. Find average profit ………………
(a) ₹ 50,000
(b) ₹ 25,000
(c) ₹ 10,000
(d) ₹ 12,500
Answer:
(a) ₹ 50,000

Question 9.
Calculate the value of goodwill at 3 years purchase when capital employed is ₹ 2,50,000. Average profit ₹ 30,000 and normal rate of return is 10% ………………
(a) ₹ 3,000
(b) ₹ 25,000
(c) ₹ 30,000
(d) ₹ 15,000
Answer:
(d) ₹ 15,000

Question 10.
Adjusted profit = Actual profit
(a) + past expenses not required in the future
(b) – past revenue not likely to be eached in the future
(c) + additional income expected in the future
(d) All of these
Answer:
(d) All of these

II. Fill in the blanks:

Question 11.
Goodwill brought in cash by new partner is divided among the old partner by debiting is ________ A/c and crediting ________ A/c.
Answer:
Goodwill; capital.

Question 12.
Calculation of goodwill under simple average profit method is ________
Answer:
Total profit =

Question 13.
Super profit method normal profit is ________
Answer:
Normal profit = Capital employed x Normal rate of return

Question 14.
Under average profit method ________
Answer:
x 100

Question 15.
Super profit = ________
Answer:
Average profit – Normal profit

III. Short answer questions

Question 1.
What are the nature of goodwill?
Answer:
The nature of the goodwill can be described as follows:

1. Goodwill is an tangible fixed asset. It is tangible because it has no physical existence. It cannot be seen or touched.
2. It has a definite value depending on the profitability of the business enterprise.
3. It cannot be separated from the business.
4. It helps in earning more profit and attracts more customers.
5. It can be purchased or sold only when the business is purchased or sold in full or in part.

Question 2.
What is average profit method?
Answer:
Under this method, goodwill is calculated as certain years of purchase of average profits of the past years. The number of years of purchase is generally determined on the basis of the average period a new business will take in order to bring it to the current state of the existing business.

Question 3.
What is meant by simple average profit method?
Answer:
Goodwill is calculated by multiplying the average profit by a certain number of years of purchase. Simple average profit is calculated by adding the adjusted profits of certain number of years by dividing the total number of such years.
Goodwill = Average profit x Number of years purchase Total profit.
Average profit =

Question 4.
Weighted average profit method.
Answer:
Goodwill is calculated by multiplying the weighted average profit by a certain number of years of purchase.
Goodwill = Weighted average profit x Number of years purchase
In this method, weights are assigned to each year’s profit. Weighted profit is ascertained by multiplying the weights assigned with the respective year’s profit.
Weighted average profit =

Question 5.
What is meant by annuity method of valuation of goodwill?
Answer:
Value of goodwill is calculated by multiplying the super profit with the present value of annuity.
Goodwill = Super profit x Present value annuity factor
Present value annuity factor is the present value of annuity of rupee one at a given time. It can be found out from annuity table or by using formula.

Question 6.
What is annuity factor?
Answer:
Annuity refers to series of uniform cash flows at regular intervals. The table value gives the present value of annuity of rupee one received at the end of every year for a specified number of years.

where, i = interest rate ; n = estimated number of years

Question 7.
What is capitalisation of super profit method?
Answer:
Under this method, value of goodwill is calculated by capitalising the super profit at normal rate of return, that is, goodwill is the capitalised value of super profit.
Goodwill = x 100

IV. Exercise

Question 1.
Goodwill is to be valued at three years purchase of five years average profits. The profit for the last five years were 2010 – ₹ 4,200; 2011 — ₹ 4,500; 2012 – ₹ 4,700; 2013 – ₹ 4,600; and 2014 – ₹ 5,000.
Solution:
Calculation of average profit:

Calculation of goodwill = Average profit x No. of years purchase
= ₹ 4,600 x 3 = ₹ 13,800

Question 2.
A firm’s profit for the last 5 years were ₹ 20,000, ₹ 30,000, ₹ 40,000. ₹ 50,000, and ₹ 60,000. Calculated the value of firm’s goodwill on the basis of three years purchase of weighted average profit after using weight of 1, 2, 3, 4, 5 respectively.
Solution:

Goodwill = Weighted avg. profit x Number of years purchase = 46,667 x 3 = ₹ 1,40,000 (appr.)

Question 3.
A business has earned average profit ₹ 1,00,000 during the last few years and the normal rate of return in similar business is 10%. Find out the value of goodwill.

1. Capitalisation of super profit method.
2. Super profit method of the goodwill is valued at 3 years purchase of super profit. The assets of the business were ₹ 10,00,000 and liabilities of ₹ 1,80,000.

Solution:
1. Capital employed = Assets – libilities
= 10,00,000 – 1,80,000
= ₹ 8,20,000
Normal profit = Capital employed x
8,20,000 = 1 x \(\frac { 10 }{ 100 }\) = 82,000
Super profit = Average profit – Normal profit
= ₹ 1,00,000 – ₹ 82,000 = ₹ 18,000

2. Capitalisation method Super profit
Goodwill = x 100
= \(\frac { 18, 000 }{ 10 }\) = ₹ 1, 80,000
as per super profit method Goodwill = super profit x No. of years purchase
= ₹ 18000 x 3 = ₹ 54,000

Question 4.
The average profit earned by the firm is Z 80,000 which includes under valuation of stock an average basis the capital invested in the business and normal rate of return is 8%. Calculate the goodwill of the firm on the basis of times the super profit.
Solution:
Average profit – ₹ 80,000
(A) Under value of stock – ₹ 8,000
Actual Average profit – ₹ 88,000
Normal profit = Capital investment x Normal rate of return
= ₹ 88,000 – ₹ 64,000
= ₹ 24,000
Goodwill = Super profit x 7
= ₹ 24,000 x 7
= ₹ 1,68,000

Question 5.
Capital investment is ₹ 5,00,000; firms profit ₹ 1,50,000 Assuming that normal rate of return is 20%. Calculate the goodwill

1. Capitalisation method.
2. Super profit method if the goodwill is valued @ 2 years purchase

Solution:
1. Capitalisation of average profit method.
Goodwill = x 100
= \(\frac { 1,50,000 }{ 20 }\) = ₹ 7,50,000
Goodwill = Total capital employed – capital employed
= ₹ 7,50,000 – ₹ 5,00,000 = ₹ 2,50,000

2. Super profit method
Normal profit = Capital employed x
Normal profit = ₹ 5,00,000 x \(\frac { 20 }{ 100 }\) = ₹ 1,00,000
Super profit = Average profit – Normal profit
= ₹ 1,50,000 – 1,00,000
= ₹ 50,000
Value of Goodwill = Super profit x No. of years purchase
= ₹ 50,000 x 2
= ₹ 1,00,000

Question 6.
Calculate the value of goodwill of the firm of 2 partners
(a) At the 3 years purchase of average profits
(b) At 3 years purchase of super profits
(c) On the basis of capitalisation of super profits
(d) On the basis of capitalisation of average profits

(i) Average capital employed ₹ 7,00,000
(ii) Net trading results of the firm 2014 – ₹ 1,47,600 2015 – Loss ₹ 1,48,100. Profit for 2016 – ₹ 4,48,700
(iii) Rate of interest on capital @ 18%
(iv) Remunuration ₹ 500/- per month
Solution:
Calculation of Average profit and super profit
Total profit = ₹ 1,47,600 – ₹ 1,48,100 + ₹ 4,48,700 = ₹ 4,48,200
Average profit = = ₹ 1,49,400
Less: Remunration of 2 partner (2 x 500 x 1/2) \(\frac { 12,000 }{ 1,37,400 }\)
Less: Normal profit = Capital employed x
= 7,00,000 x \(\frac { 18 }{ 100 }\) = ₹ 1,26,000
Super profit = ₹ 11,400

(a) Average profit – Average profit x No. of year purchase
= ₹ 1,37,400 x 3 = ₹ 4,12,200

(b) Super profit – Super profit x No. of year purchase
= ₹ 11,400 x 3 = ₹ 34,200

(c) Capitalisation of super profit – x 100
= \(\frac { 11,400 }{ 18 }\) x 100
= ₹ 63,333

(d) Capitalisation of average profit = x 100
= \(\frac { 1,37,400 }{ 100 }\) x 100
= ₹ 7,63,333
(-) Actual capital employed = ₹ 7,00,000
Goodwill = ₹ 63,333

Students can Download Accountancy Chapter 5 Admission of a Partner Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 5 Admission of a Partner

Samacheer Kalvi 12th Accountancy Admission of a Partner Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Revaluation A/c is a ……………..
(a) Real A/c
(b) Nominal A/c
(c) Personal A/c
(d) Impersonal A/c
Answer:
(b) Nominal A/c

Question 2.
On revaluation, the increase in the value of assets leads to ……………..
(a) Gain
(b) Loss
(c) Expense
(d) None of these
Answer:
(a) Gain

Question 3.
The profit or loss on revaluation of assets and liabilities is transferred to the capital account of ……………..
(a) The old partners
(b) The new partner
(c) All the partners
(d) The Sacrificing partners
Answer:
(a) The old partners

Question 4.
If the old profit sharing ratio is more than the new profit sharing ratio of a partner, the difference is called ……………..
(a) Capital ratio
(b) Sacrificing ratio
(c) Gaining ratio
(d) None of these
Answer:
(b) Sacrificing ratio

Question 5.
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of ……………..
(a) all the partners
(b) the old partners
(c) the new partner
(d) the sacrificing partners
Answer:
(d) the sacrificing partners

Question 6.
Which of the following statements is not true in relation to admission of a partner?
(a) Generally mutual rights of the partners change
(b) The profits and losses of the previous years are distributed to the old partners
(c) The firm is reconstituted under a new agreement
(d) The existing agreement does not come to an end
Answer:
(d) The existing agreement does not come to an end

Question 7.
Match List I with List II and select the correct answer using the codes given below:

Answer:
(b) 3 2 4 1

Question 8.
Select the odd one out:
(a) Revaluation profit
(b) Accumulated loss
(c) Goodwill brought by new partner
(d) Investment fluctuation fund
Answer:
(c) Goodwill brought by new partner

Question 9.
James and Kamal are sharing profits and losses in the ratio of 5:3. They admit Sunil as a partner giving him 1/5 share of profits. Find out the sacrificing ratio.
(a) 1:3
(b) 3:1
(c) 5:3
(d) 3:5
Answer:
(c) 5:3

Question 10.
Balaji and Kamalesh are partners sharing profits and losses in the ratio of 2:1. They admit Yogesh into partnership. The new profit sharing ratio between Balaji, Kamalesh and Yogesh is agreed to 3:1:1. Find the sacrificing ratio between Balaji and Kamalesh.
(a) 1:3
(b) 3:1
(c) 2:1
(d) 1:2
Answer:
(d) 1:2

II. Very Short Answer Questions

Question 1.
What is meant by the revaluation of assets and liabilities?
Answer:
When a partner is admitted into the partnership, the assets and liabilities are revealed as the current value may differ from the book value. Determination of current values of assets and liabilities is called revaluation of assets and liabilities.

Question 2.
How are accumulated profits and losses distributed among the partners at the time of admission of a new partner?
Answer:
Profits and losses of previous years which are not distributed to the partners are called accumulated profit and losses. This belongs to the old partners and hence these should be distributed to the old partners in the old profit sharing ratio.

Question 3.
What is sacrificing ratio?
Answer:
The sacrificing ratio is the proportion of the profit which is sacrificed or foregone by the old partners in favour of the new partner.
The share sacrificed is calculated by deducting the new share from the old share.
Share sacrificed = Old share – New share

Question 4.
Give the journal entry for writing off existing goodwill at the time of admission of a new partner.
Answer:
Journal Entry

Question 5.
State whether the following will be debited or credited in the revaluation account.

1. Depreciation on assets
2. Unrecorded liability
3. Provision for outstanding expenses
4. Appreciation of assets

Answer:

1. Depreciation on assets – Debited
2. Unrecorded liability – Debited
3. Provision for outstanding expenses – Debited
4. Appreciation of assets – Debited

III. Short Answer Questions

Question 1.
What are the adjustments required at the time of admission of a partner?
Answer:
The following adjustment is necessary at the time of admission of a partner:

• Distribution of accumulated profits, reserves, and losses
• Revaluation of assets and liabilities
• Determination of new profit-sharing ration and sacrificing ratio
• Adjustment for goodwill
• Adjustment of capital on the basis of new profit sharing ratio (if so agreed)

Question 2.
What are the journal entries to be passed on revaluation of assets and liabilities?
Answer:

Question 3.
Write a short note on the accounting treatment of goodwill.
Answer:
1. For the goodwill brought in cash credited to old partner’s capital account

2. For the goodwill brought in kind (in the form of the asset) credited to the old partner’s capital account

3. For withdrawal of cash received for goodwill by the old partners

III. Exercises

Question 1.
Arul and Anitha are partners sharing profits and losses in the ratio of 4 : 3. On 31.3.2018, Ajay was admitted as a partner. On the date of admission, the book of the firm showed a general reserve of ₹ 42,000. Pass the journal entry to distribute the general reserve.
Answer:

Question 2.
Anjali and Nithya are partners of firm sharing profits and losses in the ratio of 5 : 3. They admit Pramila on 1.1.2018. On that date, their balance sheet showed an accumulated loss of ₹ 40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.
Answer:

Question 3.
Oviya and Kavya are partners in firm sharing profits and losses in the ratio of 5:3. They admit Agalya into the partnership. Their balance sheet as on 31^st March, 2019 is as follows:
Balance Sheet as on 31^st March 2019

Pass journal entry to transfer the accumulated profits and reserve on admission.

Question 4.
Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5:3:2. As of 1^st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4:3:2:1. The following adjustments are to be made.

1. Increase the value of premises by ₹ 60,000.
2. Depreciate stock by ₹ 5,000, furniture by ₹ 2,000 and machinery by ₹ 2,500.
3. Provide for an outstanding liability of ₹ 500.

Pass journal entries and prepare revaluation account.
Journal Entries

Revaluation Account

Question 5.
Seenu and Siva are partners sharing profits and losses in the ratio of 5:3. In view of Kowsalya admission, they decided

1. To increase the value of the building by ₹ 40,000.
2. To bring into record investments at ₹ 10,000, which have not so far been brought into account.
3. To decrease the value of machinery by ₹ 14,000 and furniture by ₹ 12,000.
4. To write off sundry creditors by ₹ 16,000.

Pass journal entries and prepare revaluation account.

Revaluation Account

Question 6.
Sai and Shankar are partners, sharing profits and losses in the ratio of 5 : 3. The firm’s balance sheet as on 31^st December 2017, was as follows:

On 31^st December 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with ₹ 12,000 as capital subject to the following adjustments.

1. Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000
2. Provision for doubtful debts is to be increased to ₹ 5,500
3. An unrecorded investment of ₹ 6,000 is to be brought into account
4. An unrecorded liability ₹ 2,500 has to be recorded now

Pass journal entries and prepare Revaluation Account and capital account of partners after admission.
Journal Entries

Revaluation Account

Capital Account

Question 7.
Amal and Vimal are partners in firm sharing profits and losses in the ratio of 7 : 5. Their balance sheet as on 31^st March, 2019, is as follows:

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of 30,000 for 1/3 share in the future profit subject to the following adjustments.

1. Stock to be depreciated by ₹ 5,000
2. Provision for doubtful debts to be created for ₹ 3,000
3. Land to be appreciated by ₹ 20,000

Prepare revaluation account and capital account of partners after admission.
Answer:
Revaluation Account

Capital Account

Question 8.
Praveena and Dhanya are partners sharing profits in the ratio of 7 : 3. They admit Malini into the firm. The new ratio among Praveena, Dhanya and Malini is 5 : 2 : 3. Calculate the sacrificing ratio.
Answer:
Sacrificing Ratio = Old Ratio – New Ratio
Praveena = \(\frac { 7 }{ 10 }\) – \(\frac { 5 }{ 10 }\) = \(\frac { 2 }{ 10 }\)
Dhanya = \(\frac { 3 }{ 10 }\) – \(\frac { 2 }{ 10 }\) = \(\frac { 1 }{ 10 }\)
Sacrificing Ratio = 2 : 1

Question 9.
Ananth and Suman are partners sharing profits and losses in the ratio of 3 : 2. They admit Saran for 1/5 share, which he acquires entirely from Ananth. Find out the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Ananth = \(\frac { 3 }{ 5 }\) – \(\frac { 1 }{ 5 }\) = \(\frac { 2 }{ 5 }\)
Suman = \(\frac { 2 }{ 5 }\) – = \(\frac { 2 }{ 5 }\)
Ananth = \(\frac { 1}{ 5 }\) – = \(\frac { 1 }{ 5 }\)
New Profit sharing Ratio = 2 : 2 : 1
Sacrificing Ratio = 1 : 0

Question 10.
Raja and Ravi are partners, sharing profits in the ratio of 3 : 2. They admit Ram for 1/4 share of the profit. He takes 1/20 share from Raja and 4/20 from Ravi. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio = Old Ratio – Sacrificing Ratio
Raja = \(\frac { 3 }{ 5 }\) – \(\frac { 1 }{ 20 }\) = \(\frac { 12 – 1 }{ 20 }\) = \(\frac { 11 }{ 20 }\)
Ravi = \(\frac { 2 }{ 5 }\) – \(\frac { 4 }{ 20 }\) = \(\frac { 8 – 4 }{ 20 }\) = \(\frac { 4 }{ 20 }\)
Ram = \(\frac { 1 }{ 20 }\) + \(\frac { 4 }{ 20 }\) = \(\frac { 5 }{ 20 }\)
New Profit sharing Ratio = 11 : 4 : 5
Sacrificing Ratio = \(\frac { 1 }{ 20 }\) : \(\frac { 4 }{ 20 }\)

Question 11.
Vimala and Kamala are partners, sharing profits and losses in the ratio of 4:3. Vinitha enters into the partnership and she acquires 1/14 from Vimala and 1/14 from Kamala. Find out the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio = Old Ratio – Sacrificing Ratio
Vimala = \(\frac { 4 }{ 7 }\) – \(\frac { 1 }{ 14 }\) = \(\frac { 8 – 1 }{ 14 }\) = \(\frac { 7 }{ 14 }\)
Kamala = \(\frac { 3 }{ 7 }\) – \(\frac { 1 }{ 14 }\) = \(\frac { 6 – 1 }{ 14 }\) = \(\frac { 5 }{ 14 }\)
Vinitha = \(\frac { 1 }{ 14 }\) + \(\frac { 1 }{ 14 }\) = \(\frac { 2 }{ 14 }\)
New Profit Sharing Ratio = 7 : 5 : 2
Sacrificing Ratio = 1 : 1

Question 12.
Govind and Gopal are partners in a firm sharing profits in the ratio of 5 : 4. They admit Rahim as a partner. Govind surrenders 2/9 of his share in favour of Rahim. Gopal surrenders 1/9 of his share in favour of Rahim. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Govind = \(\frac { 5 }{ 9 }\) x \(\frac { 2 }{ 9 }\) = \(\frac { 10 }{ 81 }\) ; \(\frac { 5 }{ 9 }\) – \(\frac { 10 }{ 81 }\) = \(\frac { 45 – 10 }{ 81 }\) = \(\frac { 35 }{ 81 }\)
Gopal = \(\frac { 4 }{ 9 }\) x \(\frac { 1 }{ 9 }\) = \(\frac { 4 }{ 81 }\) ; \(\frac { 3 }{ 8 }\) – \(\frac { 3 }{ 64 }\) = \(\frac { 24 – 3 }{ 64 }\) = \(\frac { 21 }{ 64 }\)
Rahim = \(\frac { 2 }{ 9 }\) + \(\frac { 1 }{ 9 }\) = \(\frac { 3 }{ 9 }\) ; \(\frac { 10 }{ 81 }\) + \(\frac { 4 }{ 81 }\) = \(\frac { 14 }{ 81 }\)
New Profit Sharing Ratio = 35 : 32 : 14
Sacrificing Ratio = \(\frac { 10 }{ 81 }\) : \(\frac { 4 }{ 81 }\) = 5 : 2

Question 13.
Prema and Chandra share profits in the ratio of 5:3. Hema is admitted as a partner. Prema surrendered 1/8 of her share and Chandra surrendered 1/8 of her share in favour of Hema. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Prema = \(\frac { 5 }{ 8 }\) x \(\frac { 1 }{ 8 }\) = \(\frac { 5 }{ 64 }\) ; \(\frac { 5 }{ 8 }\) – \(\frac { 5 }{ 64 }\) = \(\frac { 40 – 5 }{ 64 }\) = \(\frac { 35 }{ 64 }\)
Chandra = \(\frac { 3 }{ 8 }\) x \(\frac { 1 }{ 8 }\) = \(\frac { 3 }{ 64 }\) ; \(\frac { 3 }{ 8 }\) – \(\frac { 3 }{ 64 }\) = \(\frac { 24 – 3 }{ 64 }\) = \(\frac { 21 }{ 64 }\)
Hema = \(\frac { 5 }{ 64 }\) + \(\frac { 3 }{ 64 }\) = \(\frac { 8 }{ 64 }\)
New Profit Sharing Ratio = 35 : 21 : 8
Sacrificing Ratio = 5 : 3

Question 14.
Karthik and Kannan are equal partners. They admit Kailash with 1/4 share of the profit. Kailash acquired his share from old partners in the ratio of 7:3. Calculate the new profit sharing ratio and sacrificing ratio.
New Profit Sharing Ratio:
Karthik = \(\frac { 1 }{ 4 }\) x \(\frac { 7 }{ 10 }\) = \(\frac { 7 }{ 40 }\) ; \(\frac { 1 }{ 2 }\) – \(\frac { 7 }{ 40 }\) = \(\frac { 20 – 7 }{ 40 }\) = \(\frac { 13 }{ 40 }\)
Kannan = \(\frac { 1 }{ 4 }\) x \(\frac { 3 }{ 10 }\) = \(\frac { 3 }{ 40 }\) ; \(\frac { 1 }{ 2 }\) – \(\frac { 3 }{ 40 }\) = \(\frac { 20 – 3 }{ 40 }\) = \(\frac { 17 }{ 40 }\)
Kailash = \(\frac { 1 }{ 4 }\) x 10 = \(\frac { 10 }{ 40 }\)
New Profit Sharing Ratio = 13 : 17 : 10
Sacrificing Ratio = 7 : 3

Question 15.
Selvam and Senthil are partners sharing profit in the ratio of 2:3. Siva is admitted into the firm with 1/5 share of profit. Siva acquires equally from Selvam and Senthil. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
New Profit Sharing Ratio:
Siva’s share = \(\frac { 1 }{ 5 }\) x \(\frac { 1 }{ 2 }\) = \(\frac { 1 }{ 10 }\)
Selvam’s share = \(\frac { 2 }{ 5 }\) – \(\frac { 1 }{ 10 }\) = \(\frac { 4 – 1 }{ 10 }\) = \(\frac { 3 }{ 10 }\)
Senthil’s share = \(\frac { 3 }{ 5 }\) – \(\frac { 1 }{ 10 }\) = \(\frac { 6 – 1 }{ 10 }\) = \(\frac { 5 }{ 10 }\)
Siva’s share = \(\frac { 1 }{ 10 }\) + \(\frac { 1 }{ 10 }\) = \(\frac { 2 }{ 10 }\)
New Profit sharing Ratio = 3 : 5 : 2
Sacrificing Ratio = 1 : 1

Question 16.
Mala and Anitha are partners, sharing profits and losses in the ratio of 3 : 2. Mercy is admitted into the partnership with 1/5 share in the profits. Calculate new profit sharing ratio and sacrificing ratio.
Answer:
Calculate New Profit Sharing Ratio = 1 – \(\frac { 1 }{ 5 }\) = \(\frac { 4 }{ 5 }\)
Mala = \(\frac { 3 }{ 5 }\) x \(\frac { 4 }{ 5 }\) = \(\frac { 12 }{ 25 }\)
Anitha = \(\frac { 2 }{ 5 }\) x \(\frac { 4 }{ 5 }\) = \(\frac { 8 }{ 25 }\)
Mercy = \(\frac { 1 }{ 5 }\) x 5 = \(\frac { 5 }{ 25 }\)
New Profit Sharing Ratio = 12 : 8 : 5
Sacrificing Ratio = Old share – New share
Mala = \(\frac { 3 }{ 5 }\) – \(\frac { 12 }{ 25 }\) = \(\frac { 15 – 12}{ 25 }\) = \(\frac { 3 }{ 25 }\)
Anitha = \(\frac { 2 }{ 5 }\) – \(\frac { 8 }{ 25 }\) = \(\frac { 2 }{ 25 }\)
Sacrificing Ratio = 3 : 2

Question 17.
Ambika, Dharani, and Padma are partners in firm sharing profits in the ratio of 5:3:2. They admit Ramya for 25% profit. Calculate the new profit sharing ratio and sacrificing ratio.
Answer:
Ramya share = 25% = 100% – 25% = 75% = \(\frac { 3 }{ 4 }\)
Ambika’s share = \(\frac { 5 }{ 10 }\) x \(\frac { 3 }{ 4 }\) = \(\frac { 15 }{ 40 }\)
Dharani’s share = \(\frac { 3 }{ 10 }\) x \(\frac { 3 }{ 4 }\) = \(\frac { 9 }{ 40 }\)
Padma’s share = \(\frac { 2 }{ 10 }\) x \(\frac { 3 }{ 4 }\) = \(\frac { 6 }{ 40 }\)
Mercy’s share
New Profit Sharing Ratio
Sacrificing Ratio = Old share – New share
Ambika’s share = \(\frac { 5 }{ 10 }\) – \(\frac { 15 }{ 40 }\) = \(\frac { 20 – 15 }{ 40 }\) = \(\frac { 5 }{ 40 }\)
Dharani’s share = \(\frac { 3 }{ 10 }\) – \(\frac { 9 }{ 40 }\) = \(\frac { 12 – 9 }{ 40 }\) = \(\frac { 3 }{ 40 }\)
Padma’s share = \(\frac { 2 }{ 10 }\) – \(\frac { 6 }{ 40 }\) = \(\frac { 8 – 6 }{ 40 }\) = \(\frac { 2 }{ 40 }\)
Sacrificing Ratio = 5 : 3 : 2

Question 18.
Aparna and Priya are partners who share profits and losses in the ratio of 3 : 2. Brindha joins the firm for 1/5 share of profits and brings in cash for her share of the goodwill of ₹ 10,000. Pass necessary journal entry for adjusting goodwill on the assumption that the fluctuating capital method is followed and the partners withdraw the entire amount of their share of goodwill.
Adjustment of goodwill
Journal Entries

Question 19.
Deepak, Senthil, and Santhosh are partners sharing profits and losses equally. They admit Jerald into a partnership for 1/3 share in future profits. The goodwill of the firm is valued at ₹ 45,000 and Jerald brought cash for his share of goodwill. The existing partners withdraw half of the amount of their share of goodwill. Pass necessary journal entries for adjusting goodwill on the assumption that the fluctuating capital method is followed.
Journal Entries

Jerald’s Share of goodwill = ₹ 45000 x 1/3 = ₹ 1,500
As the sacrifice made by the existing partners is not mentioned. It is assumed that they sacrifice in their old share profit ratio = 1 : 1 : 1.
Therefore, Sacrificing ratio = 1 : 1 : 1.

Question 20.
Malathi and Shobana are partners sharing profits and losses in the ratio of 5 : 4. They admit Jayasri into a partnership for 1/3 share of profit. Jayasri pays cash ₹ 6,000 towards her share of goodwill. The new ratio is 3 : 2 : 1. Pass necessary journal entry for adjusting goodwill on the assumption that the fixed capital method is followed.
Adjusting Goodwill: Old share – New Share
Malathi’s share = \(\frac { 5 }{ 9 }\) – \(\frac { 3 }{ 6 }\) = \(\frac { 10 – 9 }{ 18 }\) = \(\frac { 1 }{ 18 }\)
Shobana’s share = \(\frac { 4 }{ 9 }\) – \(\frac { 2 }{ 6 }\) = \(\frac { 8 – 6 }{ 18 }\) = \(\frac { 2 }{ 18 }\)

Question 21.
Anu and Arul were partners in firm sharing profits and losses in the ratio of 4 : 1. They have decided to admit Mano into the firm for 2/5 share of profits. The goodwill of the firm on the date of admission was valued at ₹ 25,000. Mano is not able to bring in cash for his share of goodwill. Pass necessary journal entry for goodwill on the assumption that the fluctuating capital method is followed.
Answer:
Mano’s shares: 25000 x \(\frac { 2 }{ 5 }\) = Rs 10000

Question 22.
Varun and Barath are partners sharing profits and losses 5 : 4. They admit Dhamu into partnership. The new profit sharing ratio is agreed at 1 : 1 : 1. Dhamu’s share of goodwill is valued at ₹ 15,000 of which he pays ₹ 10,000 in cash. Pass necessary journal entries for adjustment of goodwill on the assumption that the fluctuating capital method is followed.
Answer:
Dhamu’s share of goodwill against sacrificing ratio:
Sacrificing Ratio = Old share – New share
Varun = \(\frac { 5 }{ 9 }\) – \(\frac { 1 }{ 3 }\) = \(\frac { 5 – 3 }{ 9 }\) = \(\frac { 2 }{ 9 }\)
Barath = \(\frac { 4 }{ 9 }\) – \(\frac { 1 }{ 3 }\) = \(\frac { 4 – 3 }{ 9 }\) = \(\frac { 1 }{ 9 }\)
Goodwill value = \(\frac { 15000 }{ 3 }\) = ₹ 5000.

Question 23.
Sam and Jose are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 1^st April 2018, they admitted Joel as a partner. On the date of Joel’s admission, goodwill appeared in the books of the firm at ₹ 30,000. By assuming fluctuating capital method, pass the necessary journal entry if the partners decide to

1. write off the entire amount of existing goodwill
2. write off ₹ 20,000 of the existing goodwill.

Answer:
Journal Entries
(a) Write off the entire amount of existing goodwill

(b) Write off ₹ 20,000 of the existing goodwill

Question 24.
Raj an and Selva are partners sharing profits and losses in the ratio of 3:1. Their balance sheet as on 31^st March 2017 is as under:

On 1.4.2017, they admit Ganesan as a new partner on the following arrangements:

1. Ganesan brings ₹ 10,000 as capital for 1/5 share of profit.
2. Stock and furniture are to be reduced by 10%, a reserve of 5% on debtors for doubtful debts is to be created.
3. Appreciate buildings by 20%.

Prepare revaluation account, partners’ capital account, and the balance sheet of the firm after admission.
Revaluation Account

Capital Account

Balance Sheet

Question 25.
Sundar and Suresh are partners sharing profits in the ratio of 3:2. Their balance sheet as on 1^st January, 2017 was as follows:

They decided to admit Sugumar into a partnership for 1/4 share in the profits on the following terms:

1. Sugumar has to bring in ₹ 30,000 as capital. His share of goodwill is valued at ₹ 5,000. He could not bring cash towards goodwill.
2. That the stock is valued at ₹ 20, 000.
3. That the furniture is depreciated by ₹ 2,000.
4. That the value of the building is depreciated by 20%.

Prepare necessary ledger accounts and the balance sheet after admission.
Answer:
Revaluation Account

Capital Account

Balance Sheet as on 31.12.17

Question 26.
The following is the balance sheet of Janies and Justina as of 1.1.2017. They share profits and losses equally.

On the above date, Balan is admitted as a partner with a 1/5 share in future profits. Following are the terms for his admission:

1. Balan brings ₹ 25,000 as capital.
2. His share of goodwill is ₹ 10,000 and he brings cash for it.
3. The assets are to be valued as under:

Building ₹ 80,000; Debtors ₹ 18,000; Stock ₹ 33,000 Prepare necessary ledger accounts and the balance sheet after admission.
Answer:
Revaluation Account

Capital Account

Cash Account

Balance Sheet as on 01.01.2017

Question 27.
Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:

Rajesh is admitted for 1/5 share on the following terms:

1. Goodwill of the firm is valued at ₹ 80,000 and Rajesh brought cash ₹ 6,000 for his share of goodwill.
2. Rajesh is to bring ₹ 1,50,000 as his capital.
3. Motor car is valued at ₹ 2,00,000; stock at ₹ 3,80,000 and debtors at ₹ 3,50,000.
4. Anticipated claim on workmen compensation fund is ₹ 10,000
5. Unrecorded investment of ₹ 5,000 has to be brought into account.

Prepare revaluation account, capital accounts, and balance sheet after Rajesh’s admission.
Revaluation Account

Capital Account

Balance Sheet as on 31.03.2018

Samacheer Kalvi 12th Accountancy Admission of a Partner Additional Questions and Answers

I. Choose the correct answer

Question 1.
At the time of admission of a partner calculation of net profit ratio is ………………
(a) not necessary
(b) necessary
(c) optional
Answer:
(b) necessary

Question 2.
In admission, undistributed profit or loss transferred to ………………
(a) New Partners only
(b) Old Partners only
(c) All the Partners
Answer:
(b) Old Partners only

Question 3.
To get sacrificing ratio should be deducted from old share ………………
(a) Gaining share
(b) New share
(c) Neither of the two
Answer:
(b) new share

Question 4.
A person who is admitted to the firm is known as ………………
(a) Outgoing partners
(b) Incoming partner
(c) Both
Answer:
(b) incoming partner

Question 5.
At the time of admission of a new partner, the following are revalued ………………
(a) Assets
(b) Liabilities
(c) Both
Answer:
(c) Both

Question 6.
New profit ratio is calculated at the time of admission, by deducting ………………
(a) Sacrifice from the old ratio
(b) Old ratio from the sacrifice
(c) Sacrifice from the new ratio
Answer:
(a) Sacrifice from the old ratio

Question 7.
On the admission of a new partner ………………
(a) Old firm has to be dissolved
(b) Old partnership has to be dissolved
(c) Both old firm and partnership have to be dissolved
(d) Neither partnership nor firm has to be dissolved
Answer:
(b) Old partnership has to be dissolved

Question 8.
When a new partner brings his share of goodwill in cash, the amount is debited to ………………
(a) Premium A/c
(b) Cash A/c
(c) Capital A/c of old partner
(d) Capital A/c of new partner
Answer:
(b) Cash A/c

Question 9.
Goodwill already appearing in the Balance sheet at the time of admission of a partner is transferred to ………………
(a) New Partners’ Capital A/c
(b) Old Partners’ Capital A/c
(c) Revaluation A/c
(d) None of the above
Answer:
(b) Old Partners’ Capital A/c

Students can Download Economics Chapter 11 Tamil Nadu Economy Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Economics Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 11 Tamil Nadu Economy

Samacheer Kalvi 11th Economics Tamil Nadu Economy Text Book Back Questions and Answers

Part – A
Multiple Choice Questions

Question 1.
In health index, Tamil Nadu is ahead of
(a) Kerala
(b) Punjab
(c) Gujarat
(d) all the above
Answer:
(c) Gujarat

Question 2.
In sex ratio, Tamil Nadu ranks
(a) first
(b) second
(c) third
(d) fourth
Answer:
(c) third

Question 3.
Tamil Nadu is rich in
(a) Forest resource
(b) human resource
(c) mineral resource
(d) all the above
Answer:
(b) human resource

Question 4.
The main source of irrigation in Tamil Nadu is
(a) river
(b) tank
(c) well
(d) canals
Answer:
(c) well

Question 5.
Knitted garment production is concentrated in
(a) Coimbatore
(b) Tiruppur
(c) Erode
(d) Karur
Answer:
(b) Tiruppur

Question 6.
Which of the following is wrongly matched?
(a) Gateway of Tamil Nadu – Thoothukudi
(b) Home textile city – Erode
(c) Steel city – Salem
(d) Pump city – Coimbatore
Answer:
(b) Home textile city – Erode

Question 7.
Which of the following cities does not have international airport?
(a) Madurai
(b) Tiruchirappalli
(c) Paramakudi
(d) Coimbatore
Answer:
(c) Paramakudi

Question 8.
TN tops in the production of the following crops except
(a) Banana
(b) Coconut
(c) plantation crops
(d) cardamom
Answer:
(d) cardamom

Question 9.
Largest area of land is used in the cultivation of
(a) Paddy
(b) sugarcane
(c) Groundnut
(d) Coconut
Answer:
(a) Paddy

Question 10.
In literacy rate, TN ranks
(a) second
(b) fourth
(c) sixth
(d) eighth
Answer:
(d) eighth

Question 11.
In investment proposals filed by MSMEs, TN ranks
(a) I
(b) II
(c) III
(d) IV
Answer:
(a) I

Question 12.
Which district in TN has the highest sex ratio?
(a) Nagapattinam
(b) Nilgiris
(c) Tiruchirapalli
(d) Thanjavur
Answer:
(b) Nilgiris

Question 13.
Which district has the lowest child sex ratio?
(a) Madurai
(b) Theni
(c) Ariyalur
(d) Cuddalore
Answer:
(c) Ariyalur

Question 14.
Which Union Territory has the highest sex ratio?
(a) Chandigarh
(b) Pondicherry
(c) Lakshadeep
(d) Andaman Nicobar
Answer:
(b) Pondicherry

Question 15.
The largest contribution to GSDP in Tamil Nadu comes from
(a) agriculture
(b) industry
(c) mining
(d) services
Answer:
(d) services

Question 16.
In human development index, TN is ranked
(a) Second
(b) fourth
(c) sixth
(d) third
Answer:
(d) third

Question 17.
SPIC is located in
(a) Chennai
(b) Madurai
(c) Tuticorin
(d) Pudukottai
Answer:
(c) Tuticorin

Question 18.
The TICEL park is
(a) Rubber Park
(b) Textile park
(c) Food park
(d) Bio
Answer:
(d) Bio

Question 19.
In India’s total cement production, Tamil Nadu ranks
(a) third
(b) fourth
(c) first
(d) second
Answer:
(a) third

Question 20.
The Headquarters of Southern Railway is at
(a) Tiruchirappalli
(b) Chennai
(c) Madurai
(d) Coimbatore
Answer:
(b) Chennai

Part – B
Answer the following questions in one or two sentences

Question 21.
State any two districts with favourable sex ratio. Indicate the ratios.
Answer:
Population Growth in Tamil Nadu: At a glance (2011 census)

1. Sex Ratio (per 1000 males) District with highest:
The Nilgiris (1041 females) Thanjavur (1031 females) Nagapattinam (1025 females)

2. Sex Ratio (per 1000 males) District with Lowest:
Theni (900 females) Dharmapuri (946 females)

Question 22.
Define GSDP.
Answer:
The Gross State Domestic Product refers to the total money value of all the goods and services produced annually in the state.

Question 23.
Mention any four food crops which are favourable to Tamil Nadu.
Answer:

1. Rice: Tamil Nadu is India’s second-biggest producer of rice.
2. Banana and Coconut: Tamil Nadu ranks first in the production of Banana and coconut.
3. Cashewnut: Tamil Nadu ranks second in the production of cashew nut.
4. Pepper: Tamil Nadu ranks third in the production of pepper.
5. Sugarcane: Tamil Nadu ranks fourth in the production of Sugarcane.

Question 24.
What are major ports in Tamil Nadu?
Answer:
Major ports at Chennai, Ennore and Tuticorin Intermediate port in Nagapattinam.

Question 25.
What is heritage tourism?
Answer:

1. Tamil Nadu has since ancient past been a hub for tourism.
2. In recent years, the state has emerged as one of the leading tourist destinations for both domestic and foreign tourists.
3. Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking.
4. The State currently ranks the highest among the Indian States with about 25 crore arrivals (in 2013). Approximately 28 lakh foreign and 11 crore domestic tourists visit the State.

Question 26.
What are the nuclear power plants in Tamil Nadu?
Answer:
The Kalpakkam Nuclear power plant and the Koodankulam Nuclear power plant.

Question 27.
Define Micro industry.
Answer:

1. Micro, small and medium Enterprises are MSMEs that produce a wide variety of products in almost all sectors.
2. The prominent among them are the engineering, electrical, chemicals, plastics, steel, paper, matches, textiles, hosiery, and garments sector.

Part – C
Answer the following questions in One Paragraph

Question 28.
Write a note on mineral resources in Tamil Nadu.
Answer:
Mineral resources in Tamil Nadu:

1. Tamil Nadu has a few mining projects based on Titanium, Lignite, Magnesite, Graphite, Limestone, Granite and Bauxite.
2. The first one is the Neyveli Lignite Corporation that has led the development of large industrial complex around Neyveli in the Cuddalore district with Thermal Power Plants, Fertilizer and carbonization plants.
3. Magnesite mining is at Salem from which mining of Bauxite ores are carried out at Yercaud and this region is also rich in Iron ore at Kanjamalai.
4. Molybdenum is found in Karadikuttam in Madurai district.

Question 29.
Explain GSDP in Tamil Nadu.
Answer:

1. The Gross State Domestic Product (GSDP) refers to the total money value of all the goods and services produced annually in the state.
2. Tamil Nadu is the second-largest economy in India with a GSDP of $ 207.8 billion in 2016 – 2017 according to the Directorate of Economics and Statistics, Tamil Nadu.
3. The GSDP of Tamil Nadu is equal to the GDP of Kuwait on nominal terms and the GDP of UAE on PPP terms. Per capita, GSDP would be better for intercountry or interstate comparisons.
4. Tamil Nadu GSDP = $207.8 billion in 2016 – 17.

Question 30.
Describe development of textile industry in Tamil Nadu.
Answer:
Development of textile industry in Tamil Nadu:

1. Tamil Nadu is the largest textile hub of India. Tamil Nadu is known as the “Yam Bowl” of the country.
2. Tamil Nadu accounts for 41% of India’s cotton yam production.
3. It produce direct employment to 35 million people.
4. It contributes 4% of GDP and 35% of gross export earnings.
5. The textile sector contributes to 14% of the manufacturing sector.

Question 31.
Compare productivity of any two food crops between Tamil Nadu and India.
Answer:

1. Asia result of Government’s efforts Tamil Nadu tops in productivity, in food crops as well as non-food crops, among the states in India.
2. Among Indian states Tamil Nadu ranks first in maize, Kambu, Groundnut, Oil seeds and Cotton.
3. Second in rice and coconut.
4. Third in Sugarcane, Sunflower and Jowar.

Question 32.
Explain the prospect for the development of tourism.
Answer:

1. Tourism in Tamil Nadu is promoted by Tamil Nadu Tourism Development Corporation (TTDC), a Government of Tamil Nadu undertaking.
2. Tamil Nadu has since ancient past been a hub for tourism. In recent years, the state has emerged as one of the leading tourist destinations for both domestic and foreign tourists.
3. The state currently ranks the highest among Indian states with about 25 crore arrivals in 2013.
4. Approximately 28 lakh foreign and 11 crore domestic tourists visit the State.

Question 33.
What are the renewable sources of power in Tamil Nadu?
Answer:
Renewable sources of power in Tamil Nadu:

1. Tamil Nadu is the fore front of all other Indian States in installed capacity.
2. Muppandal wind farm is a renewable energy source, supplying the villagers with electricity for work.
3. Wind farms were built in Nagercoil and Tuticorin apart from already existing ones around Coimbatore, Pollachi, Dharapuram, and Udumalaipettai.
4. Wind energy contributes 2% of the total power output of India.
5. Tamil Nadu tops in solar power generation in India.
6. There are about 20 hydro electric units in Tamil Nadu.

Question 34.
Describe the performance of Tamil Nadu economy in health.
Answer:
Performance of Tamil Nadu economy in health:

1. Tamil Nadu has a three-tier health infrastructure comprising hospitals, primary health centres, health units, community health centres and sub-centres.
2. Tamil Nadu has placed third in health index as per the NITIAAYOG report.
3. The neo natal mortality rate is 14 which is lower than many other states.
4. The under 5 mortality has dropped from 21 in 2014 to 20 in 2015.

Part – D
Answer the following questions in about a page

Question 35.
Describe the qualitative aspects of population.
Answer:
Tamil Nadu stands sixth in population with 7.21 crore against India’s 121 crores as per 2011 census. Tamil Nadu’s population is higher than that of several countries according to UN Report. Tamil Nadu population 7.2 [crores] in 2017.

Density:

1. The density of population which measures population per sq.km is 555 [2011] against 480 [2001].
2. Tamil Nadu ranks 12^th in density among the Indian States and overall it is 382 for India.

Urbanization:

1. Tamil Nadu is the most urbanized state with 48.4% of urban population against 31.5% for India as a whole.
2. The State accounts for 9.61% of total urbanites in India against 6% share of total population.

Sex Ratio [Numbers of females per 1000 males].

1. A balanced sex ratio implies improvement in the quality of life of the female population.
2. The sex ratio in Tamil Nadu is nearing balance with 995 which is far better compared to most of the States and all India level.
3. Tamil Nadu stands third next only to Kerala State and Puducherry Union Territory in sex ratio.

Question 36
Explain the various sources of energy in Tamil Nadu.
Answer:
Tamil Nadu tops in power generation among the southern states. Tamil Nadu is in the forefront of all other Indian states in installed capacity.
Muppandal wind farm is a renewable energy source, Supplying the villagers with electricity for work.

1. Nuclear energy : The Kalpakkam and the Koddankulam Nuclear Power Plants are the major nuclear energy plants for the energy grid.

2. Thermal power: In Tamil Nadu the share of thermal power in total energy sources is very high and the thermal power plants are at Athippattu, Ennore, Mettur, Neyveli and Thoothukudi.

3. Hydel energy : There are about 20 hydro electric units in Tamil Nadu. The prominent units are Hundah, Mettur, Periyar, Maravakandy, Parson valley etc.

4. Solar energy : Tamil Nadu tops in solar power generation in India. Southern Tamil Nadu is considered as one of the most suitable regions the country for developing solar power projects.

5. Wind energy : Tamil Nadu has the highest installed wind energy capacity in India.
The state has very high quality of off shore wind energy potential off the Tirunelveli coast and Southern Thoothukudi and Rameswaram coast.

Question 37.
Explain the public transport system in Tamil Nadu.
Answer:
Transport: Tamil Nadu has a well-established transportation system that connects all parts of the State. This is partly responsible for the investment in the State.

Tamil Nadu is served by an extensive road network in terms of its spread and quality, providing links between urban centers, agricultural market-places, and rural habitations in the countryside. However, there is scope for improvement.

Road Transport:

• There are 28 national highways in the State, covering a total distance of 5,036 km.
• The State has a total road length of 167,000 km, of which 60,628 km are maintained by the Highways Department.

Rail Transport:

• Tamil Nadu has a well-developed rail network as part of Southern Railway, headquartered in Chennai.
• Tamil Nadu has a total railway track length of 6,693 km and there are 690 railway stations in the State.
• Main rail junctions in the State include Chennai, Coimbatore, Erode, Madurai, Salem, Tiruchirapalli, and Tirunelveli.
• Chennai has a well-established suburban railway network, a Mass Rapid Transport system, and is currently developing a Metro System, with its first underground stretch operational since May 2017.

Air Transport:

• Tamil Nadu has four major international airports.
• Chennai International Airport is currently the third-largest airport in India.
• Other international airports in Tamil Nadu include Coimbatore International Airports, Madurai International Airport, and Tiruchirapalli International Airport.
• It also has domestic airports at Tuticorin, Salem, and Madurai.
• Increased industrial activity has given rise to an increase in passenger traffic as well as freight movement which has been growing at over 18% per year.

Ports:

• Tamil Nadu has three major ports; one each at Chennai, Ennore, and Tuticorin, as well as one intermediate port in Nagapattinam, and 23 minor ports.
• The ports are currently capable of handling over 73 million metric tonnes of cargo annually (24% share of India).
• All the minor ports are managed by the Tamil Nadu Maritime Board, Chennai Port.
• This is an artificial harbour and the second principal port in the country for handling containers.
• It is currently being upgraded to have a dedicated terminal for cars capable of handling 4,00,000 vehicles.
• Ennore Port was recently converted from an intermediate port to a major port and handles all the coal and ore traffic in Tamil Nadu.

Samacheer Kalvi 11th Economics Tamil Nadu Economy Additional Questions and Answers

Part-A
Choose the best options

Question 1.
Molybdenum is found in the _____ district of Tamil Nadu.
(a) Chennai
(b) Madurai
(c) Tirunelveli
(d) Vellore
Answer:
(b) Madurai

Question 2.
Tamil Nadu has _____ Population as against 121 crores of India.
(a) 7.12 crore
(b) 1.72 crore
(c) 7.21 crore
(d) 1.27 crore
Answer:
(c) 7.21 crore

Question 3.
Tamil Nadu’s per capital income is _____
(a) 1100 dollar
(b) 2200 dollar
(c) 3360 dollar
(d) 4400 dollar
Answer:
(d) 4400 dollar

Question 4.
Gross state domestic product is
(a) GSDP
(b) MMR
(c) GDP
(d) IMF
Answer:
(a) GSDP

Question 5.
The Detroit of Asia is _____
(a) Bengaluru
(b) Madurai
(c) Coimbatore
(d) Chennai
Answer:
(d) Chennai

Question 6.
_____ is Tamil Nadu’s steel city
(a) Chennai
(b) Karur
(c) Salem
(d) Namakkal
Answer:
(c) Salem

Question 7.
_____ is famous for the bus body building.
(a) Karur
(b) Trichy
(c) Vellore
(d) Chennai
Answer:
(a) Karur

Question 8.
_____ is the yarn bowl of India.
(a) Orissa
(b) Kerala
(c) Andhra
(d) Tamil Nadu
Answer:
(d) Tamil Nadu

Question 9.
Gateway of Tamil Nadu is _____
(a) Thoothukudi
(b) Chennai
(c) Coimbatore
(d) Ranipet
Answer:
(a) Thoothukudi

Question 10.
_____ is the knitting city.
(a) Erode
(b) Karur
(c) Namakkal
(d) Tirupur
Answer:
(d) Tirupur

Question 11.
Which of the following is wrongly matched?
(a) SAIL – Salem
(b) The Pumpcity – Coimbatore
(c) BHEL – Trichy
(d) Knitting City – Karur
Answer:
(d) Knitting City – Karur

Match the following and choose the answer using the codes given below

Question 1.

(a) 4 3 2 1
(b) 1 2 3 4
(c) 4 1 2 3
(d) 3 4 2 1
Answer:
(a) 4 3 2 1

Question 2.

(a) 4 3 2 1
(b) 2 1 4 3
(c) 1 2 3 4
(d) 2 1 3 4
Answer:
(b) 2 1 4 3

Choose the incorrect pair

Question 3.

Answer:
(c) Little japan (iii) Coimbatore

Question 4.

Answer:
(d) Steel City (iv) Erode

Choose the correct statement

Question 5.
(a) Tamil Nadu is the third largest contributor to India’s GDP
(b) Tamil Nadu ranks second in coconut production.
(c) Tamil Nadu ranks first in cement production
(d) Chennai is called as Detroit of Asia.
Answer:
(d) Chennai is called as Detroit of Asia.

Question 6.
(a) The population density of T.N is 480 as per 2011 census,
(b) There are 30 national highways in Tamil Nadu.
(c) Tamil Nadu has the highest installed wind energy capacity in India
(d) The headquarters of southern railway is at Trichy.
Answer:
(c) Tamil Nadu has the highest installed wind energy capacity in India

Choose the incorrect pair

Question 7.

Answer:
(b) Artificial Harbour (ii) Chennai

Question 8.

Answer:
(a) Highest sex ratio (i) The Nilgiris

Question 9.

Answer:
(a) Rajapalayam (i) Surgical cotton product

Pick the odd one out

Question 10.
(a) Coimbatore
(b) Erode
(c) Madurai
(d) Trichy
Answer:
(b) Erode

Question 11.
(a) Coconut
(b) Groundnut
(c) Rice
(d) Sugarcane
Answer:
(c) Rice

Choose the incorrect statement

Question 12.
(a) Chennai is referred as banking capital of India.
(b) Tamil Nadu ranks first in maize production.
(c) Tamil Nadu ranks 3rd in human development Index.
(d) Tamil Nadu is the third-largest contributor to India’s GDP
Answer:
(d) Tamil Nadu is the third-largest contributor to India’s GDP

Question 13.
(a) Tamil Nadu has eight agro-climatic zones
(b) There are 17 river basins in Tamil Nadu.
(c) The tertiary sector is the major contributor to Tamil Nadu’s GSDP.
(d) Tamil Nadu is the second-largest economy in India.
Answer:
(d) Tamil Nadu is the second-largest economy in India.

Fill in the blanks with the suitable option given below

Question 14.
Tamilnadu has _______ population as against 121 crore of India
(a) 7.12 crore
(b) 1.72 crore
(c) 7.21 crore
(d) 1.27 crore
Answer:
(c) 7.21 crore

Question 15.
Tamil Nadu’s per capita income is ______
(a) 1100 dollar
(b) 2200 dollar
(c) 3360 dollar
(d) 4400 dollar
Answer:
(b) 2200 dollar

Question 16.
Gross state domestic product is ______
(a) GSDP
(b) MMR
(c) GDP
(d) IMF
Answer:
(a) GSDP

Question 17.
IMR is the number of mortality before completing
(a) 1 year of age
(b) 5 years of age
(c) 3 years of age
(d) 10 years of age
Answer:
(a) 1 year of age

Question 18.
The world’s biggest bagasse based paper mill is at ______
(a) Trichy
(b) Karur
(c) Coimbatore
(d) Erode
Answer:
(b) Karur

Question 19.
Every year India international leather fair is hosted at ______
(a) Coimbatore
(b) Madurai
(c) Chennai
(d) Mumbai
Answer:
(c) Chennai

Question 20.
______ wind farm is a renewable energy source
(a) Nagapattinam
(b) Valapandal
(c) Nagercoil
(d) Muppandal
Answer:
(d) Muppandal

Part – B
Answer the following questions in one or two sentences

Question 1.
How can you calculate per capita income?
Answer:
Percapita income =

Question 2.
Define infant mortality rate
Answer:
IMR is the number of mortality before completing 1 year of age.

Question 3.
What is cash – deposit ratio?
Answer:
C-D ratio is the ratio of bank advances to deposits.

Question 4.
What is the position of Tamil Nadu in automotives?
Answer:
Tamil Nadu has 28% share each in automotive and auto components industries, 19% in the trucks segment and 18% each in passenger cars and two-wheelers.

Question 5.
Why is Sivakasi called Little Japan?
Answer:
Sivakasi is a leader in the areas of printing, fireworks, and safety matches. It contributes 80% of India’s fireworks production and 60% of India’s total offset printing solution. As there are too many industries in Sivakasi it is called Little Japan.

Question 6.
Name the cement manufacturing places of Tamil Nadu?
Answer:
Ariyalur, Virudhunagar, Coimbatore, and Tirunelveli.

Question 7.
What is the measure of unemployment in Tamil Nadu?
Answer:
Tamil Nadu ranks 22nd with unemployment rate of 42 per 1000.

Part – C
Answer the following questions in one Paragraph

Question 1.
Explain about unemployment and poverty in Tamil Nadu?
Answer:
Unemployment: Tamil Nadu ranks 22nd with unemployment rate of 42 per 1000 as against national average of 50.

Poverty:

1. Tamil Nadu is one of India’s richest states.
2. Since 1994, the state has seen a steady decline in poverty.
3. Tamil Nadu has lower levels of poverty than most other states in the country.

Question 2.
Explain about water resources of Tamil Nadu.
Answer:
Water resources of Tamil Nadu:

1. Tamil Nadu is not endowed with rich natural resources compared to other states.
2. It accounts for three percent of water sources, four percent of land area against six percent of population.
3. North east monsoon is the major source of rainfall followed by the south west monsoon.
4. There are 17 river basins in Tamil Nadu. The main rivers are Palar, Cheyyar, Ponnaiyar, Cauvery, Bhavani, Vaigai, Chittar, Tamiraparani, Vellar, Noyyal, Siruvani, Gundar, Vaipar etc.
5. Wells are the largest source of irrigation in Tamil Nadu.

Question 3.
Name the water resources of Tamil Nadu.
Answer:
Water resources of Tamil Nadu:

1. Ranipet, Ambur, Vaniyambadi – Leather
2. Salem . – Powerlooms, Home textiles, Steel, Sago
3. Sankagiri – Lorry fleet operators
4. Tiruchengode – Borewell drilling services
5. Naakkal – Transportation Poultry
6. Karur – Coach-building, Powerlooms
7. Erode – Powerlooms, Turmeric
8. Coimbatore – Spinning mills, Engineering industries
9. Tirupur – Knitwear, Readymade garments
10. Rajapalayam – Surgical cotton products
11. Sivakasi – Safety matches, Fireworks, Printing

Part – D
Answer the following questions in about a page

Question 1.
Elaborate the highlights of Tamil Nadu economy.
Answer:
Highlights of Tamil Nadu economy:

1. Growth of GSDP in Tamil Nadu has been among the fastest in India since 2005.
2. Poverty reduction is faster than that in many other states.
3. It contains a smaller proportion of India’s poor population.
4. Second largest contributor to India’s GDP.
5. 3rd in Human Development Index.
6. Ranks 3rd in terms of invested capital and value of total industrial output.
7. Ranks first among the states in terms of invested capital and value of total industrial output.
8. Third in the health index
9. Has highest Gross Enrollment Ratio in higher education.
10. Has the largest number of engineering colleges.
11. Has emerged as a major hub for renewable energy.
12. Has highest credit deposit ratio in commercial and cooperative banks.
13. Ranks first on investment proposals filled by MSMEs.

Question 2.
Compare the per capital income of Tamil Nadu with other countries.
Answer:

1. The per capita GSDP of Tamil Nadu is $ 2200 which is higher than that of many other states in India.
2. Per capita, the GSDP of Tamil Nadu is nearly 1.75 times higher than the national average, as per 2018 data.
3. In terms of the per capital income in Tamil Nadu was Rs. 1,03,600 in 2010-11 and it has increased to Rs. 1,88,492 in 2017-18 as per the budget figures 2018.

Question 3.
Explain the role of MSMEs in Tamil Nadu.
Answer:
Role of MSMEs in Tamil Nadu:

1. The MSME enterprises are classified as manufacturing and service enterprises based on the investment in plant, machinery and equipment MSMED act 2006.
2. Tamil Nadu accounts of 15,07% micro, small and medium enterpriser which is highest in the country.
3. There are 6.89 lakhs registered MSMEs producing over 8000 varieties of product for investment more than Rs. 32,008 crore.
4. The prominent products of MSMEs are the engineering, electrical, chemicals, plastics, steel paper, matches, textiles, hosiery and garments sector.
5. Around 15.61 lakh entrepreneurs have registered, providing employment opportunities to about 99.7 lakhs persons with a total investment of Rs. 1,68,331 crore.

Question 4.
Explain about banks in Tamil Nadu.
Answer:
In Tamil Nadu, Nationalised banks account for 52% with 5,337 branches, private commercial banks 30% (3060) branches, state bank of India and its associates 13% (1,364) RRBs 5% (537) branches and the remaining 22 foreign bank branches.

Deposits of the banks:

1. Total deposits of the banks in Tamil Nadu increased by 14.32% by March 2017 and touched Rs. 6,65,068.59 crores.
2. Total credits of the banks increased by 13.50% by March 2017 and touched Rs. 6,95,500.31 crores.

Advances of the banks:

1. The share of priority sector advances stands at 45.54% as against the national average of 40%
2. Primary sector advances stand at 45.54%
3. Agricultural advances stands at 19.81% on March 2017.
4. Banks in Tamil Nadu has the highest credit deposit ratio of 119.15% in the country.

Students can Download Accountancy Chapter 2 Accounts of Not-For-Profit Organisation Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 2 Accounts of Not-For-Profit Organisation

Samacheer Kalvi 12th Accountancy Accounts of Not-For-Profit Organisation Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Receipts and payments account is a …………….
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
Answer:
(b) Real A/c

Question 2.
Receipts and payments account records receipts and payments of …………….
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) None of the above
Answer:
(c) Both revenue and capital nature

Question 3.
Balance of receipts and payments account indicates the …………….
(a) Loss incurred during the period
(b) Excess of income over expenditure of the period
(c) Total cash payments during the period
(d) Cash and bank balance as on the date
Answer:
(d) Cash and bank balance as on the date

Question 4.
Income and expenditure account is a …………….
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
Answer:
(a) Nominal A/c

Question 5.
Income and Expenditure Account is prepared to find out …………….
(a) Profit or loss
(b) Cash and bank balance
(c) Surplus or deficit
(d) Financial position
Answer:
(c) Surplus or deficit

Question 6.
Which of the following should not be recorded in the income and expenditure account?
(a) Sale of old news papers
(b) Loss on sale of asset
(c) Honorarium paid to the secretary
(d) Sale proceeds of furniture
Answer:
(d) Sale proceeds of furniture

Question 7.
Subscription due but not received for the current year is …………….
(a) An asset
(b) A liability
(c) An expense
(d) An item to be ignored
Answer:
(a) An asset

Question 8.
Legacy is a …………….
(a) Revenue expenditure
(b) Capital expenditure
(c) Revenue receipt
(d) Capital receipt
Answer:
(d) Capital receipt

Question 9.
Donations received for a specific purpose is …………….
(a) Revenue receipt
(b) Capital receipt
(c) Revenue expenditure
(d) Capital expenditure
Answer:
(b) Capital receipt

Question 10.
There are 500 members in a club each paying ₹ 100 as annual subscription. Subscription due but not received for the current year is ₹ 200; Subscription received in advance is ? 300. Find out the amount of subscription to be shown in the income and expenditure account,
(a) ₹ 50, 000
(b) ₹ 50, 200
(c) ₹ 49, 900
(d) ₹ 49, 800
Answer:
(a) ₹ 50,000

II. Very Short Answer Questions

Question 1.
State the meaning of not-for-profit organisation.
Answer:
Some organisations are established for the purpose of rendering services to the public without any profit motive. They may be created for the promotion of art, culture, education and sports, etc. These organisations are called not-for-profit organisation.

Question 2.
What is receipts and payments account?
Answer:
Receipts and Payments account is a summary of cash and bank transactions of not-for-profit organisations prepared at the end of each financial year. It is a real account in nature.

Question 3.
What is legacy?
Answer:
It is the amount given to a non-trading concern as per the will. It is like a donation. It appears on the debit side of receipts and payments account, but is not treated as income because it is not of recurring nature. It is a capital receipt.

Question 4.
Write a short note on life membership fees.
Answer:
Life membership fee is accounted as a capital receipt and added to capital fund on the liabilities side of Balance sheet. It is non – recurring in nature.

Question 5.
Give four examples for capital receipts of not-for-profit organisation.
Answer:

1. Life membership fees
2. Legacies
3. Specific donation
4. Sale of fixed assets

Question 6.
Give four examples for revenue receipts of not-for-profit organisation.
Answer:

1. Subscription
2. Interest on investment
3. Interest on fixed deposit
4. Sale of old sports material

III. Short Answer Questions

Question 1.
What is income and expenditure account?
Answer:
Income and expenditure account is a summary of income and expenditure of a not-for-profit organisation prepared at the end of an accounting year. It is prepared to find out the surplus or deficit pertaining to a particular year. It is a nominal account in nature in which items of revenue receipts and revenue expenditure relating to the current year alone are recorded.

Question 2.
State the differences between Receipts and Payments Account and Income and Expenditure Account.
Answer:

Question 3.
How annual subscription is dealt with in the final accounts of not-for-profit organisation?
Answer:
(A) Treatment in income and expenditure account:
When subscription received for the current year, previous years and subsequent period are given separately, subscription received for the current year will be shown on the credit side of income and expenditure account after making the adjustments given below:

• Subscription outstanding for the current year is to be added.
• Subscription received in advance in the previous year which is meant for the current year is to be added.

When total subscription received in current year is given:

• Subscription outstanding in the previous year which is received in the current year will be subtracted.
• Subscription received in advance in the previous year which is meant for the current year is added and subscription received in advance must be subtracted.

(B) Treatment in Balance sheet:

• Subscription outstanding for the current year and still outstanding for the previous year will be shown on the asset side of the Balance sheet.
• Subscriptions received in advance in the current year will be shown on the liabilities side of the Balance sheet.

Question 4.
How the following items are dealt with in the final accounts of not-for-profit organisation?

1. Sale of sports materials
2. Life membership fees
3. Tournament fund

Answer:
1. Sale of sports materials:
The sale proceeds of old sports materials like balls and bats, etc., are revenue receipts.

2. Life membership fees:
Amount received like membership fee from members is a capital receipt as it is non – recurring in nature.

3. Tournament fund:
It is recurring in nature. It is revenue receipt. It is shown on liabilities side of balance sheet. Opening balance added donations and subtracted expenses incurred.

IV. Exercises

Question 1.
From the information given below, prepare Receipts and Payments account of Kurunji Sports Club for the year ended 31^st December, 2018.

Answer:
Kurinji Sports Club Account for the year ended 31st Dec 2018
Receipts and Payments

Question 2.
From the information given below, prepare Receipts and Payments account of Coimbatore Cricket Club for the year ending 31^st March, 2019.

Answer:
Coimbatore Cricket Club Receipts and Payments Account
for the year ending 31.03.19

Question 3.
From the information given below, prepare Receipts and Payments account of Madurai Mother Theresa Mahalir Mandram for the year ended 31^st December, 2018.

Answer:
Madurai Mother Theresa Mahalir Mandram Receipts and Payments Account for the year ending 31.12.18

Question 4.
Mayiladuthurai Recreation Club gives you the following details. Prepare Receipts and Payments account for the year ended 31^st March, 2019.

Answer:
Mayiladuthurai Recreation Club Receipts and Payments Account for the year ending 31.3.19

Question 5.
From the following information, prepare Receipts and Payments account of Cuddalore Kabaddi Association for the year ended 31^st March, 2019.

Cuddalore Kabadi Association Receipts and Payments Account for the year ending 31.03.19
Answer:

Question 6.
From the following receipts and payments account of Tenkasi Thiruvalluvar Manram, prepare income and expenditure account for the year ended 31^st March, 2019.

Answer:
Tenkasi Thiruvalluvar Manram Income and Expenditure Account for the year ended 31.03.19

Question 7.
From the following receipts and payments account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31^st March, 2018.

Answer:
Kumbakonam Basket Ball Association Income & Expenditure Account for the year ended 31.03.19

Question 8.
From the following receipts and payments account and the additional information given below, calculate the amount of subscription to be shown in Income and expenditure account for the year ending 31^st December, 2018.

Answer:
Income and Expenditure Account for the year ended 31.12.18

Question 9.
How the following items will appear in the final accounts of a club for the year ending 31st March 2019?
Receipts and Payments Account for the year ended 31st March, 2019

Answer:
There are 200 members in the club each paying an annual subscription of ₹ 400 per annum. Subscription still outstanding for the year 2017 – 2018 is ₹ 2,000.
Income & Expenditure Account for the year ended 31.03.2019

Balance Sheet as on 31.03.19

Question 10.
How will the following items appear in the final accounts of a club for the year ending 31st March 2017? Received subscription of ₹ 40,000 during the year 2016 – 17. This includes subscription of ₹ 5,000 for 2015 – 16 and ₹ 3,000 for the year 2017 – 18. Subscription of ₹ 1,000 is still outstanding for the year 2016 – 17.
Answer:
Income & Expenditure Account for the year ended 31.03.19
Balance Sheet as on 31.03.19

Question 11.
Compute income from subscription for the year 2018 from the following particulars relating to a club.

Answer:
Subscription received during the year 2018: ₹ 45,000. Income & Expenditure Account for the year ended 31.03.2019

Question 12.
From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31 – 12 – 2018?
Subscription received in 2018 is ₹ 50,000 which includes ₹ 5,000 for 2017 and ₹ 7,000 for 2019. Subscription outstanding for the year 2018 is ₹ 6,000. Subscription of ₹ 4,000 was received in advance for 2018 in the year 2017.
Answer:
Income and Expenditure Account for the year ended 31.12.2018

Question 13.
How the following items appear in the final accounts of Thoothukudi Young Pioneers Association?
There are one hundred members in the association each paying ₹ 25 as annual subscription. By the end of the year 10 members had not paid their subscription but four members had paid for the next year in advance.
Income & Expenditure Account for the year ended
Answer:

Balance Sheet as on …………..

Question 14.
How will the following appear in the final accounts of Marthandam Women Cultural Association?

Answer:
Income and Expenditure Account for the year ended 31.03.19

Balance Sheet as on 31.03.19

Question 15.
How will the following appear in the final accounts of Vedaranyam Sports club?

Answer:
Income & Expenditure Account for the year ended

Balance Sheet as on …………..

Question 16.
Show how the following items appear in the income and expenditure account of Sirkazhi Singers Association?

Answer:
Income and Expenditure Account for the year ended 31.03.18

Question 17.
Chennai tennis club had Match fund showing credit balance of ₹ 24,000 on 1^st April, 2018. Receipt to the fund during the year was ₹ 26,000. Match expenses incurred during the year was ₹ 33,000. How these items will appear in the final accounts of the club for the year ended 31^st March, 2019?
Balance Sheet as on 31.03.2019
Answer:
Income and Expenditure Account for the year ended 31.03.18

Question 18.
How will the following appear in the final accounts of Karaikudi sports club for the year ending 31^stMarch, 2019?

Answer:
Balance Sheet as on 31.03.19

Question 19.
Compute capital fund of Salem Sports Club as on 1.4.2019.

Answer:
Balance Sheet as on 01.04.2019

Question 20.
From the following Receipts and Payments account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31^st December, 2018

Additional information:

1. Capital fund as on 1^st January 2018 ₹ 30,000.
2. Opening stock of sports material ₹ 3,000 and closing stock of sports material ₹ 5,000.

Answer:
Income and Expenditure Account for the year ended 31.12.18

Balance Sheet as on 31.12.18

Question 21.
From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31^st March, 2019 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31^st March, 2019

Additional information:

1. Opening capital fund ₹ 20,000.
2. Stock of books on 1.4.2018 ₹ 9,200.
3. Subscription due but not received ₹ 1,700.
4. Stock of stationery on 1.4.2018 ₹ 1,200 and stock of stationery on 31.3.2019, ₹ 2,000

Income and Expenditure Account for the year ended 31.03.19

Balance Sheet as on 31.03.2019

Question 22.
Following is the Receipts and Payments account of Neyveli Science Club for the year ended 31^st December, 2018.
Receipts and Payments Account for the year ended 31^st December, 2018

Additional information:

1. Opening capital fund ₹ 6,400
2. Subscription includes ₹ 600 for the year 2019
3. Science equipment as on 1.1.2018 ₹ 5,000
4. Surplus on account of exhibition should be kept in reserve for new auditorium.

Prepare income and expenditure account for the year ended 31^st December, 2018 and the balance sheet as on that date.
Answer:
Income and Expenditure Account for the year ended 31.12.18

Balance Sheet as on 31.12.2018

Question 23.
From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31^st March, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31^st March, 2018

Additional information:

1. The club had 300 members each paying ₹ 100 as annual subscription.
2. The club had furniture ₹ 10,000 on 1.4.2017.
3. The subscription still due but not received for the year 2016 – 2017 is ₹ 1,000.

Income and Expenditure Account for the year ended 31.03.18

Opening Balance Sheet as on 1.1.18

Balance Sheet as on 31.12.2019

Question 24.
Following is the Receipts and payments account of Virudhunagar Volleyball Association for the year ended 31^st December, 2018.
Receipts and Payments Account for the year ended 31^st December, 2018

Answer:
Additional information:

1. On 1.1.2018, the association owned investments ₹ 10,000, premises and grounds ₹ 40,000, stock of bats and balls ₹ 5,000.
2. Subscription ₹ 5,000 related to 2017 is still due.
3. Subscription due for the year 2018, ₹ 6,000.

Prepare income and expenditure account for the year ended 31^st December, 2018 and the balance sheet as on that date.
Answer:
Income and Expenditure Account for the year ended 31.12.18

Opening Balance Sheet as on 1.1.18

Balance Sheet as on 31.12.2109

Samacheer Kalvi 12th Accountancy Accounts of Not-For-Profit Organisation Additional Questions and Answers

I. Choose the correct answer

Question 1.
State the primary motive of not-for-profit organisation?
(a) Producing goods
(b) Provide service
(c) Both
(d) None of these
Answer:
(b) Provide service

Question 2.
State the nature of Life membership subscription.
(a) Cash Payments
(b) Cash Receipts
(c) Capital Receipt
(d) None of these
Answer:
(b) Cash Receipts

Question 3.
On which basis Receipt and Payment Account is prepared?
(a) Cash basis
(b) Credit basis
(c) Accrual basis
(d) None of these
Answer:
(a) Cash basis

Question 4.
Classify the subscription received during the year of not-for-profit organisation.
(a) Capital Receipt
(b) Capital Expenditure
(c) Revenue Receipt
(d) Both
Answer:
(c) Revenue Receipt

Question 5.
State the nature of Receipt and Payment A/c for not-for-profit organisation.
(a) Real Account
(b) Personal A/c
(c) Nominal A/c
(d) Representative Personal A/c
Answer:
(a) Real Account

Question 6.
Subscription received in advance is
(a) An Asset
(b) Income
(c) A Liability
(d) Expenditure
Answer:
(c) A Liability

II. Fill in the blanks

Question 7.
Not-for-profit organisation set up with the objective of ……………. of the society.
Answer:
Welfare

Question 8.
The nature of Receipt and Payments Account is …………….
Answer:
An Asset

Question 9.
Receipt and Payment Account is prepared as ……………. basis of accounting.
Answer:
Cash

Question 10.
Nature of Income over Expenditure Account is …………….
Answer:
Nominal Account

Question 11.
Excess of Income over Expenditure, the result is …………….
Answer:
Real surplus Account

Question 12.
Excess of Expenditure over the Income, the result is …………….
Answer:
Definite Liability

III. Match the following

Question 13.

Answer:
(a) 4, 3, 1, 2

Question 14.

Answer:
(a) 4, 3, 1, 2

IV. Assertion and Reason:

Question 15.
Assertion : Life Membership Fee: Amount received towards life membership fee from the members is a capital receipt.
Reason : It is non – recurring nature.
(a) Assertion and Reason is correct
(b) Assertion is incorrect Reason is correct
(c) Assertion is correct
(d) Both are incorrect
Answer:
(a) Assertion and Reason is correct

Question 16.
Specific Donation : Assertion : Donation is received with a specific condition for a particular purpose like sports fund is a specific donations.
Reason : It is Capital Receipt.
(a) Assertion and Reason is incorrect
(b) Assertion and Reason is correct
(c) Assertion is correct Reason is incorrect
(d) Assertion is incorrect Reason is correct
Answer:
(b) Assertion and Reason is correct

Question 17.
Identify wrong statement about Entrance Fees
(a) Is a amount paid by a person at the time of becoming a member
(b) Is a income of Not-for-profit organisation
(c) It is a revenue receipt of organisation
(d) Is debited to Income and Expenditure Account
Answer:
(d) Is debited to Income and Expenditure Account

V. Very Short Answer Questions

Question 1.
What are the features of Not-for-profit-organisation?
Answer:

1. Main aim is service
2. Profit is not the criterion
3. Surplus not distributed among its members
4. Separate entity
5. Unique names connect their working
6. Management by elected persons

Question 2.
What are books maintained by Not-for-profit organisation?
Answer:

1. Cash Book
2. Ledger
3. Member’s Register
4. Register of Assets
5. Final Accounts: (a) Receipt and payments Account
6. Income and Expenditure Account
7. Balance Sheet

VI. Exercises:

Question 1.

Subscription of ₹ 9,000 is still in arrears for the year 2012 – 13. Prepare Income and Expenditure Account for 2013 – 2014.
Answer:
Income and Expenditure Account for the year 31.03.14

Question 2.

Answer:
Income and Expenditure Account for the year 31.3.14

Question 3.
What are the steps in preparation of Income and Expenditure from Receipts and Payments account?
Answer:

1. Opening and Closing balances of cash and bank a/cs in receipts and payment account must be excluded.

2. Capital receipts and capital expenditure must be excluded.

3. Only revenue receipts pertaining to the current year should be taken to the credit side of income and expenditure account. Due adjustments should be made for income received in advance income accrued for the current year and for the amount relating to the previous year or years.

4. Similarly revenue expenditure relating to the current year only must be taken in the debit side of income and expenditure account. Adjustment must be made for outstanding expenses of the previous year and current year and for the prepaid expenses of the previous year and current year.

5. Any income or expense relating to specific fund must not be taken to income and expenditure account.

6. Non – Cash items such as bad debts, depreciation, loss or gain on sale of assets etc. which are not recorded in receipt and payments account must be recorded in income and expenditure account.

7.The balancing figure of income and expenditure account is either surplus or deficit and will be transferred to capital fund in the balance sheet. If the total of credit side of income and expenditure account is more than the total of debit side (excess of income over expenditure), the difference represents surplus. If the debit side total income and expenditure is more than the total of credit side), the difference represents deficit.

Question 4.
Following is the summary of cash transactions of Friends Club for the year ended 31^st March 2016. Prepare Income and Expenditure Account for the year ended 31^st March 2016, and also Balance Sheet at that date.
Receipts and Payments Account

Additional Information:

1. In the beginning of the year, the club had books worth ₹ 3,00,000 and Furniture worth ₹ 58,000.
2. Subscription in Arrear 1^st April 2015 When ₹ 6,000 and ₹ 7,000 on 31st March 2016.
3. 18,000 was due by of Rent in the beginning as well at the end of the year.
4. Write off Rs. 5,000 from Furniture and ₹ 30,000 from Banks.

Balance Sheet as on 01.04.2015

Answer:
Friends Club:
Income and Expenditure Account for the year ended.

Balance Sheet as on 31.03.2016

Question 5.
From the following Receipts and Payments Account of Defence Club and from the information supplied, prepare Income and Expenditure Account for the year ended 31^st March 2016 and Balance Sheet as on that date.
Receipts and Payments Account for the year ended 31.3.2016

1. The Club has 50 members each paying an annual subscription of ₹ 2,500. Subscription outstanding in 31.03.2015 were to extent of ₹ 3,000
2. On 31^st March 2016, Salaries Outstanding amounted to ₹ 10,000. Salaries Paid in 2015 – 16 included ₹ 30,000 for the year 14 – 15
3. On 1^st April 2015, the Club owned Building valued @ ₹ 10,00,000; Furniture Worth of ₹ 1,00,000 and Books ₹ 1,00,000

Balance Sheet as on 1.4.2015

Income and Expenditure Account for the year ended 31.3.16

Balance Sheet as on 31.03.2016

Question 6.
From the following Receipts and Payments Account of Defence Club and from the information supplied, prepare Income and Expenditure Account for the year ended 31^st March 2016 and Balance sheet as on that date.
Receipts and Payments Accounts for the year ended 31^st March 2016

1. The Club has 50 members each paying an annual subscription of ₹ 2,500. Subscriptions outstanding on 31^st March, 2015 were to the extent of ₹ 30,000.
2. On 31^st March, 2016, Salaries Outstanding amounted to ₹ 10,000. Salaries Paid in 2015 – 16 included ₹ 30,000 for the year 2014 – 15
3. On 1^st April 2015, the Club owned building valued at ₹ 10,00,000. Furniture worth ₹ 1,00,000 and Books ₹ 1,00,000.

Answer:
Defence Club
Income and Expenditure Account for the year ended 31^st March, 2016

Balance Sheet as at 31^st March 2016

Working Notes 1. Calculation of Capital Fund as at 1^st April, 2015

Balance Sheet as at 31^st April, 2015

Question 7.
Following is the Receipts and Payments Account of the Mumbai Club for the year ended 31^st March 2016:
Receipts and Payments Accounts for the year ended 31^st March 2016

Additional Information:

1. Stationery Expenses, etc ₹ 3,120 related to 2014 – 15 still owing ₹ 3,640.
2. Subscription unpaid for 2015 – 16 ₹ 8,680; Special subscriptions for Governor’s party outstanding ₹ 5,500. Governor’s party is to be held in April 2016.
3. The Club owned sports materials of the value ₹ 1,60,000 on 1^st April, 2015. This was valued at ₹ 1,35,000 on 31^st March, 2016, stock includes sports materials of ₹ 5,000, which is to be written off being not usable. The club took a loan of ₹ 2,00,000 in 2014 – 15.

Prepare Income and Expenditure Account for the year ended on 31st March, 2016 and Balance Sheet as on that date.
Balance Sheet as on 1^st April 2015

Mumbai Club Income And Expenditure Account for the year ended 31^st March, 2016

Balance Sheet as on 31^st March, 2016

Question 8.
Distinction between Receipts and Payments Account and Cash Book.
Answer:

Students can Download Accountancy Chapter 3 Accounts of Partnership Firms-Fundamentals Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 3 Accounts of Partnership Firms-Fundamentals

Samacheer Kalvi 12th Accountancy Accounts of Partnership Firms-Fundamentals Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
In the absence of a partnership deed, profits of the firm will be shared by the partners in …………….
(a) Equal ratio
(b) Capital ratio
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Equal ratio

Question 2.
In the absence of an agreement among the partners, interest on capital is …………….
(a) Not allowed
(b) Allowed at bank rate
(c) Allowed @ 5% per annum
(d) Allowed @ 6% per annum
Answer:
(a) Not allowed

Question 3.
As per the Indian Partnership Act, 1932, the rate of interest allowed on loans advanced by partners is …………….
(a) 8% per annum
(b) 12% per annum
(c) 5% per annum
(d) 6% per annum
Answer:
(d) 6% per annum

Question 4.
Which of the following is shown in Profit and loss appropriation account?
(a) Office expenses
(b) Salary of staff
(c) Partners’ salary
(d) Interest on bank loan
Answer:
(c) Partners’ salary

Question 5.
When fixed capital method is adopted by a partnership firm, which of the following items will appear in capital account?
(a) Additional capital introduced
(b) Interest on capital
(c) Interest on drawings
(d) Share of profit
Answer:
(a) Additional capital introduced

Question 6.
When a partner withdraws regularly a fixed sum of money at the middle of every month, period for which interest is to be calculated on the drawings on an average is …………….
(a) 5.5 months
(b) 6 months
(c) 12 months
(d) 6.5 months
Answer:
(b) 6 months

Question 7.
Which of the following is the incorrect pair?
(a) Interest on drawings – Debited to capital account
(b) Interest on capital – Credited to capital account
(c) Interest on loan – Debited to capital account
(d) Share of profit – Credited to capital account
Answer:
(c) Interest on loan – Debited to capital account

Question 8.
In the absence of an agreement, partners are entitled to …………….
(a) Salary
(b) Commission
(c) Interest on loan
(d) Interest on capital
Answer:
(c) Interest on loan

Question 9.
Pick the odd one out …………….
(a) Partners share profits and losses equally
(b) Interest on partners’ capital is allowed at 7% per annum
(c) No salary or remuneration is allowed
(d) Interest on loan from partners is allowed at 6% per annum.
Answer:
(b) Interest on partners’ capital is allowed at 7% per annum

Question 10.
Profit after interest on drawings, interest on capital and remuneration is ₹ 10,500. Geetha, a partner, is entitled to receive commission @ 5% on profits after charging such commission. Find out commission. …………….
(a) ₹ 50
(b) ₹ 150
(c) ₹ 550
(d) ₹ 500
Answer:
(d) ₹ 500

II. Very short answer questions

Question 1.
Define partnership.
Answer:
According to section 4 of the Indian Partnership Act, 1932, the partnership is defined as, “the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

Question 2.
What is a partnership deed?
Answer:
A partnership deed is a document in writing that contains the terms of the agreement among the partners. It is not compulsory for a partnership to have a partnership deed as per the Indian Partnership Act, 1932. But, it is desirable to have a partnership deed as it serves as evidence of the terms of the agreement among the partners.

Question 3.
What is meant by the fixed capital method?
Answer:
Under the fixed capital method, the capital of the partners is not altered and it remains generally fixed. Two accounts are maintained for each partner namely

• Capital account
• Current account.

The transactions relating to initial capital introduced, additional capital introduced, and capital permanently withdrawn are entered in the capital account and all other transactions are recorded in the current account.

Question 4.
What is the journal entry to be passed for providing interest on capital to a partner?
Answer:
(a) For providing interest on capital

(b) For closing interest on capital account

Question 5.
Why is the Profit and loss appropriation account prepared?
Answer:
The profit and loss appropriation account is an extension of the profit and loss account prepared for the purpose of adjusting the transactions relating to amounts due to and amounts due from partners. It is a nominal account in nature. It is credited with net profit, interest on drawings and it is debited with interest on capital, salary, and other remuneration to the partners. The balance being the profit or loss is transferred to the partners’ capital or current account in the profit-sharing ratio.

III. Short answer questions

Question 1.
State the features of a partnership.
Answer:

1. A partnership is an association of two or more persons. The maximum number of partners is limited to 50.
2. There should be an agreement among the persons to share the profit or loss of the business. The agreement may be oral or written or implied.
3. The agreement must be to carry on a business and to share the profits of the business.
4. The business may be carried on by all the partners or any of them acting for all.

Question 2.
State any six contents of a partnership deed.
Answer:
The contents of the partnership deed are:

1. The name of the firm and nature and place of business.
2. Date of commencement and duration of business.
3. Names and addresses of all partners.
4. Capital contributed by each partner.
5. Profit-sharing ratio.
6. Amount of drawings allowed to each partner.

Question 3.
State the differences between the fixed capital method and the fluctuating capital method.
Answer:

Question 4.
Write a brief note on the applications of the provisions of the Indian Partnership Act, 1932 in the absence of a partnership deed.
Answer:

1. Remuneration to partners: No salary or remuneration is allowed to any partner; op [ Section 13 (a)]
2. Profit-sharing ratio: Profits and losses are to be shared by the partners equally. [ Section 13 (b)]
3. Interest on capital: No interest is allowed on the capital. Where a partner is entitled to interest on capital contributed as per partnership deed, such interest on capital will be payable only out of profits. [ Section 13 (c)]
4. Interest on loans advanced by partners to the firm: Interest on the loan is to be allowed at the rate of 6 percent per annum. [ Section 13 (d)]
5. Interest on drawings: No interest is charged on the drawings of the partners.

Question 5.
Jayaraman is a partner who withdrew ₹ 10,000 regularly in the middle of every month. Interest is charged on the drawings at 6% per annum. Calculate interest on drawings for the year ended 31st December 2018.
Answer:
Jayaraman:
Interest on drawings: 10,000 × \(\frac { 12 }{ 24 }\) × \(\frac { 6 }{ 100 }\) × 12 = ₹ 3600

IV. Exercises

Question 1.
Akash, Bala, Chandru, and Daniel are partners in a firm. There is no partnership deed. How will you deal with the following?

1. Akash has contributed maximum capital. He demands interest on capital at 10% per annum.
2. Bala has withdrawn ₹ 3,000 per month. Other partners ask Bala to pay interest on drawings @ 8% per annum to the firm. But, Bala did not agree to it.
3. Akash demands the profit to be shared in the capital ratio. But, others do not agree.
4. Daniel demands a salary at the rate of ₹ 10,000 per month as he spends full time for the business.
5. The loan advanced by Chandru to the firm is ₹ 50,000. He demands interest on loan @ 12% per annum.

Answer:

1. No interest on capital is payable to any partner.
2. No interest is charged on the drawing made by the partner.
3. Profit should be distributed equally.
4. No remuneration is payable to any partner.
5. Interest on the loan is payable at 6% per annum.

Question 2.
From the following information, prepare capital accounts of partners Rooban and Deri, when their capitals are fixed.

Answer:
Capital Account

Current Account

Question 3.
Arun and Selvam are partners who maintain their capital accounts under fixed capital method. From the following particulars, prepare capital accounts of partners.

Answer:
Capital Account

Current Account

Question 4.
From the following information, prepare capital accounts of partners Padmini and Padma, when their capitals are fluctuating.

Answer:

Question 5.
Mannan and Ramesh share profits and losses in the ratio of 3:2 and their capital on 1^st April, 2018 was Mannan ₹ 1,50,000 and Ramesh ₹ 1,00,000 respectively and their current accounts show a credit balance of’ 25,000 and ₹ 20,000 respectively. Calculate interest on capital at 6% p.a. for the year ending 31^st March, 2019 and show the journal entries.
Answer:

Question 6.
Prakash and Supria were partners who share profits and losses in the ratio of 5:3. Balance in their capital account on 1^st April, 2018 was Prakash ₹ 3,00,000 and Supria ₹ 2,00,000. On 1^st July, 2018 Prakash introduced additional capital of ₹ 60,000. Supria introduced additional capital of ₹ 30,000 during the year. Calculate interest on capital at 6% p.a. for the year ending 31^st March, 2019 and show the journal entries.
Answer:

Journal Entries

Question 7.
The capital account of Begum and Fatima on 1^st January, 2018 showed a balance of ₹ 50,000 and ₹ 40,000 respectively. On 1^st October, 2018, Begum introduced an additional capital of? 10,000 and on 1^st May, 2018 Fatima introduced an additional capital of ₹ 9,000.
Answer:
Calculate interest on capital at 4% p.a. for the year ending 31^st December 2018.

Question 8.
From the following balance sheets of Subha and Sudha who share profits and losses in 2:3, calculate interest on capital at 5% p.a. for the year ending 31st December 2018.
Balance sheet as on 31^st December, 2018

Drawings of Subha and Sudha during the year were ₹ 8,000 and ₹ 10,000, respectively. Profit earned during the year was ₹ 30,000.
Answer:

Question 9.
From the following balance sheets of Rajan and Devan who share profits and losses 2:1, calculate interest on capital at 6% p.a. for the year ending 31^st December 2018.
Balance sheet as on 31^st December 2018

On 1^st April, 2018, Rajan introduced an additional capital of ₹ 40,000 and on 1^st September, 2018, Devan introduced ₹ 30,000. Drawings of Rajan and Devan during the year were ₹ 20,000 and ₹ 10,000 respectively. Profit earned during the year was ₹ 70,000.
Answer:

Question 10.
Ahamad and Basheer contribute ₹ 60,000 and ₹ 40,000 respectively as capital. Their respective share of profit is 2 : 1 and the profit before interest on capital for the year is ₹ 5,000. Compute the amount of interest on capital in each of the following situations:

1. if the partnership deed is silent as to the interest on capital
2. if the interest on capital @ 4% is allowed as per the partnership deed
3. if the partnership deed allows interest on capital @ 6% per annum.

Answer:
1. No Interest on capital is allowed.

2. Since the profit is sufficient, Interest on capital will be provided.
Ahamad:
60, 000 × \(\frac { 4 }{ 100 }\) = ₹ 2, 400
Basheer:
40, 000 × \(\frac { 4 }{ 100 }\) = ₹ 1, 600

3. Since the profit is insufficient, Interest on capital will be provided.
Ahamad:
60, 000 × \(\frac { 6 }{ 100 }\) = ₹ 3, 600
Basheer:
40, 000 × \(\frac { 6 }{ 100 }\) = ₹ 2, 400
Profit of 5,000 will be distributed to the partners in their capital ratio of 3:2.

Question 11.
Mani is a partner, who withdrew ₹ 30,000 on 1^st September, 2018. Interest on drawings is charged at 6% per annum. Calculate interest on drawings on 31^st December, 2018 and show the journal entries by assuming that the fluctuating capital method is followed.
Answer:
Mani:
30, 000 × \(\frac { 6 }{ 100 }\) = ₹ 600
Interest on drawings of Mani = ₹ 600.

Question 12.
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Calculate the amount of interest on drawings.
Interest on Drawings = Amount x Rate of Interest x Period
Feb 1 ⇒ 2,000 x \(\frac { 6 }{ 100 }\) = ₹ 600
May 1 ⇒ 10, 000 x \(\frac { 6 }{ 100 }\) x \(\frac { 8 }{ 12 }\) = ₹ 400
July 1 ⇒ 4,000 x \(\frac { 6 }{ 100 }\) x \(\frac { 6 }{ 12 }\) = ₹ 120

Question 13.
Kumar is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Interest on Drawings = Amount x Rate of Interest x Period
March 1 ⇒ 4, 000 x \(\frac { 6 }{ 100 }\) = ₹ 200
June 1 ⇒ 4, 000 x \(\frac { 6 }{ 100 }\) x \(\frac { 7 }{ 12 }\) = ₹ 140
Sep 1 ⇒ 4,000 x \(\frac { 6 }{ 100 }\) x \(\frac { 4 }{ 12 }\) = ₹ 80

Question 14.
Mathew is a partner who withdrew ₹ 20,000 during the year 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31^st December 2018.
Mathew:
20 000 x \(\frac { 10 }{ 100 }\) x \(\frac { 6 }{ 12 }\) = ₹ 1, 000

Question 15.
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31^st December, 2018 he withdrew as follows:

Calculate the amount of interest on drawings by using product method.

Interest on drawings = Product x Rate of interest x \(\frac { 1 }{ 12 }\)
= 1,44,000 x \(\frac { 6 }{ 100 }\) x \(\frac { 1 }{ 12 }\) = ₹ 720

Question 16.
Kavitha is a partner in a firm. She withdraws ₹ 2,500 p.m. regularly. Interest on drawings is charged @ 4% p.a. Calculate the interest on drawings using average period, if she draws

1. At the beginning of every month
2. In the middle of every month
3. At the end of every month

Answer:
1. At the beginning of every month = 2, 500 x 12 x \(\frac { 4 }{ 100 }\) x \(\frac { 13 }{ 24 }\) = ₹ 650
2. In the middle of every month = 2,500 x 12 x \(\frac { 4 }{ 100 }\) x \(\frac { 12 }{ 24 }\) = ₹ 600
3. At the end of every month = 2, 500 x 12 x \(\frac { 4 }{ 100 }\) x \(\frac { 11 }{ 24 }\) = ₹ 550

Question 17.
Kevin and Francis are partners. Kevin draws ₹ 5,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31^st March 2019 using the average period.
Answer:
Calculation of interest on drawings of Kevin.
Total amount of drawings = 5000 x 4 = 20,000

= 20,000 x \(\frac { 6 }{ 100 }\) x \(\frac { 4.5 }{ 12 }\) = ₹ 450

Question 18.
Ram and Shyam were partners. Ram withdrew ₹ 18,000 at the beginning of each half year. Interest on drawings is chargeable @ 10% p.a. Calculate interest on the drawings for the year ending 31^st December 2018 using the average period.
Answer:
Total amount of drawing: 18, 000 x 2 = 36,000
Interest on drawings = Amount x Rate of Interest x
= 36,000 x \(\frac { 10 }{ 100 }\) x \(\frac { 9 }{ 12 }\) = ₹ 2700

Question 19.
Janani, Kamali and Lakshmi are partners in firm sharing profits and losses equally. As per the terms of the partnership deed, Kamali is allowed a monthly salary of ₹ 10,000 and Lakshmi is allowed a commission of ₹ 40,000 per annum for their contribution to the business of the firm. You are required to pass the necessary journal entry. Assume that their capitals are fluctuating.
Answer:

Question 20.
Sibi and Manoj are partners in a firm. Sibi is to get a commission of 20% of net profit before charging any commission. Manoj is to get a commission of 20% on net profit after charging all commission. Net profit for the year ended 31^st December 2018 before charging any commission was ₹ 60,000. Find the commission of Sibi and Manoj. Also, show the distribution of profit.
Answer:

Question 21.
Anand and Narayanan are partners in firm sharing profits and losses in the ratio of 5 : 3. On 1^st January 2018, their capitals were ₹ 50,000 and ₹ 30,000, respectively. The partnership deed specifies the following:

1. Interest on capital is to be allowed at 6% per annum.
2. Interest on drawings charged to Anand and Narayanan are ₹ 1,000 and ₹ 800, respectively.
3. The net profit of the firm before considering interest on capital and interest on drawings amounted to ₹ 35,000.

Give necessary journal entries and prepare profit and loss appropriation account as of 31^st December 2018. Assume that the capitals are fluctuating.
Answer:
Profit and Loss Appropriation Account

Journal Entries

Question 22.
Dinesh and Sugumar entered into a partnership agreement on 1^st January 2018, Dinesh contributing ₹ 1,50,000 and Sugumar ₹ 1,20,000 as capital. The agreement provided that:

1. Profits and losses to be shared in the ratio 2 : 1 as between Dinesh and Sugumar.
2. Partners to be entitled to interest on capital @ 4% p.a.
3. Interest on drawings to be charged Dinesh: ₹ 3,600 and Sugumar: ₹ 2,200
4. Dinesh to receive a salary of ₹ 60,000 for the year, and
5. Sugumar to receive a commission of ₹ 80,000

During the year ended on 31^st December 2018, the firm made a profit of ₹ 2,20,000 before adjustment of interest, salary, and commission.
Prepare the Profit and loss appropriation account.
Profit and Loss Appropriation Account

Question 23.
Antony and Ranjith started a business on 1st April 2018 with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. According to the Partnership Deed, Antony is to get the salary of ₹ 90,000 per annum, Ranjith is to get 25% commission on profit after allowing salary to Antony and interest on capital @ 5% p.a. but before charging such commission. Profit-sharing ratio between the two partners is 1:1. During the year, the firm earned a profit of ₹ 3,65,000.
Answer:
Prepare profit and loss appropriation account. The firm closes its accounts on 31^st March every year.

Samacheer Kalvi 12th Accountancy Accounts of Partnership Firms-Fundamentals Additional Questions and Answers

I. Choose the correct answer

Question 1.
Under the fixed capital system, the capitals of the partners ……………. year after year.
(a) keep changing
(b) remain fixed
(c) Both are possible
Answer:
(b) remain fixed

Question 2.
Under fluctuating capital system, the capitals of the partners year after years …………….
(a) keep changing
(b) Remain fixed
(c) Both are possible
Answer:
(a) keep changing

Question 3.
Under the fluctuating capital system, the partners ……………. accounts are opened.
(a) current
(b) drawing
(c) capital
Answer:
(c) capital

Question 4.
Under the fixed capital system, the profits and losses of partners will be transferred to their ……………. accounts.
(a) current
(b) drawings
(c) Both
Answer:
(a) current

Question 5.
Interest capital is calculated as the …………….
(a) opening capital
(b) closing capital
(c) Both
Answer:
(a) opening capital

Question 6.
……………. is an extension of profit and loss account
(a) Balance sheet
(b) Profit and loss appropriation account
(c) Both
Answer:
(b) Profit and loss appropriation account

Question 7.
The persons who have entered into partnership are collectively known as …………….
(a) partnership
(b) partners
(c) firm
Answer:
(c) firm

Question 8.
Name the method of calculating interest on drawings of the partner if different amounts are withdrawn are different dates …………….
(a) Direct method
(b) Product method
(c) Average period method
Answer:
(A) Product method

Question 9.
Which of the following items, does not appear in the profit and loss appropriation account?
(a) Salaries to partners
(b) Interest on capital
(c) Interest on drawings
(d) Drawings
Answer:
(d) Drawings

II. Fill in the Blanks

Question 10.
The partners share the ……………. of the business.
Answer:
Profit and losses.

Question 11.
The ……………. accounts of partners may show credit or debit balance.
Answer:
Current.

Question 12.
Interest on partners drawings is changed to their respective …………….
Answer:
Capital A/c.

Question 13.
Salary to the partner will be paid only if it is allowed by the …………….
Answer:
Agreement

Question 14.
The capital accounts of partners may be ……………. or fluctuating.
Answer:
Fixed

Question 15.
Interest Drawings for the regular interval is calculated by the formula …………….
Answer:
Total Drawings x \(\frac { Rate }{ 100 }\) x \(\frac { 16 }{ 12 }\)

Question 16.
In the case of fluctuating capital, where will you record drawings, interest on drawing …………….
Answer:
Dr. Side of Capital A/c

III. Match the following

Question 17.

Answer:
(ii) 4 3 2 1

IV. Short-answer Questions

Question 1.
What is a Current Account?
Answer:
Under the fixed capital method, Capital Account and Current accounts are maintained. In current a/c all adjustments relating to partners are recorded on the credit side of the current account viz. Interest on capital, the share of profits, salary and commission etc., are recorded. On the debit side, drawings, interest on drawings, share of loss are recorded. Current accounts sometimes shows credit balance or debit balance.

Question 2.
Interest on Capital: Mr. A and B started a business on 1.4.2014, with a capital of Rs. 60,000 and 50,000, respectively. On 1^st July 2014. Mr. A withdrew Rs 8,000 from his capital. Mr. B introduced additional capital of Rs 10,000 on 30.9.2014. Calculate interest on capital @ 5% p.a. for year ending 31.3.2015.
Solution:

Question 3.
Prince, Queen, and Kings had a capital of Rs. 1,60,000, Rs. 1,20,000 and Rs. 80,000 respectively, on 1.4.2010. Queen withdraw Rs. 16,000 on 30.9.2010. King introduced additional capital Rs. 24,000 on 31.12.10. Calculate interest on capital @ 6% p.a. on 31.3.2011.
Solution:

Question 4.
A and B are partners, sharing profits and losses in an equal ratio with Capital of Rs. 50,000 and Rs 40,000 on 1.4.2017. On 1^st July 2017, A introduced Rs 10,000 as his additional capital, where B introduced only Rs 1,000. Interest 10% p.a. Calculate interest on capital.
Solution:

Question 5.
Interest on Drawings:
Sundar and Shanmugam are two partners equally. Sundar drew regularly Rs. 4,000 end of every month. Shanmugam draws Rs. 8,000 regularly beginning of every month. Calculate interest on their drawings @10%.
Solution:
Interest on Drawings of Sundar:
Total drawings x \(\frac { Rate }{ 100 }\) x \(\frac { 5.5 }{ 12 }\)
4000 x 12 x \(\frac { 10 }{ 100 }\) x \(\frac { 5.5 }{ 2 }\)
= ₹ 2, 200
Interest on Drawings of Shanmugam:
Total drawing x \(\frac { Rate }{ 100 }\) x \(\frac { 6.5 }{ 12 }\)
8000 x 12 x \(\frac { 10 }{ 100 }\) x \(\frac { 6.5 }{ 12 }\)
= ₹ 5, 200

Question 6.
Priya and Kala are partners Priya draws Rs. 8,000 at end of each quarter. Interest on drawings @6% p.a. Kala draws Rs. 2000/- per month at the end of the month.
Solution:
Interest of drawings:
Priya: 8,000 x 4 = 32,000

V. Exercise

Question 1.
Arun and Arora were partners sharing profits and losses in the ratio 5:3. Their fixed capitals on 1.4.2016 were Arun Rs. 60,000; Arora Rs. 80,000. Interest on capital @ Rs. 12%. Interest on drawings @15% p.a. Profit for the year ended 31.3.2017 before all above adjustment was Rs. 12,600. Drawings: Arun Rs. 2,000. Arora Rs. 4,000 during the year. Prepare profit and loss appropriation account.
Solution:

Interest on Drawings:
Arun: 2000 x \(\frac { 15 }{ 100 }\) x \(\frac { 6 }{ 12 }\) = ₹ 150
Arora: 4000 x \(\frac { 15 }{ 100 }\) x \(\frac { 6}{ 12 }\) = ₹ 300

Question 2.
Write up the capital accounts and current accounts of the partners Kaviya and Divya from the following:

Solution:
Capital Account

Current Account

Question 3.
Distribution of Profits: Anitha, Ramita were partners sharing profit and losses in the ratio of 7:3. Their capitals were Rs. 80,000 and Rs. 60,000, respectively.

1. Interest on capital @10% p.a.
2. Interest on drawings @12% p.a.
3. Both to get a salary of Rs. 10,000 each per annum.
4. Anitha to get a commission of 10% on the net profit before charging such commission.

The profit for the year Rs. 60,000. Drawings were Anitha Rs. 12,000 and Ramita Rs. 8,000. Show profit and loss appropriation account and the capital A/c.
Solution:
Profit and Loss Appropriation Account

Capital Accounts

Students can Download Economics Chapter 12 Mathematical Methods for Economics Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Economics Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 12 Mathematical Methods for Economics

Samacheer Kalvi 11th Economics Mathematical Methods for Economic Text Book Back Questions and Answers

Part – A
Multiple Choice Questions

Question 1.
Mathematical Economics is the integration of ____________
(a) Mathematics and Economics
(b) Economics and Statistics
(c) Economics and Equations
(d) Graphs and Economics
Answer:
(a) Mathematics and Economics

Question 2.
The construction of demand line or supply line is the result of using ____________
(a) Matrices
(b) Calculus
(c) Algebra
(d) Analytical Geometry
Answer:
(d) Analytical Geometry

Question 3.
The first person used the mathematics in Economics is ____________
(a) Sir William Petty
(b) Giovanni Ceva
(c) Adam Smith
(d) Irving Fisher
Answer:
(a) Sir William Petty

Question 4.
Function with single independent variable is known as ____________
(a) Multivariate Function
(b) Bivariate Function
(c) Univariate Function
(d) Polvnomial Function
Answer:
(c) Univariate Function

Question 5.
A statement of equality between two quantities is called ____________
(a) Inequality
(b) Equality
(c) Equations
(d) Functions
Answer:
(c) Equations

Question 6.
An incremental change in dependent variable with respect to change in independent variable is known as ____________
(a) Slope
(b) Intercept
(c) Variant
(d) Constant
Answer:
(a) Slope

Question 7.
(y – y₁) = m (x – x₁) gives the ____________
(a) Slope
(b) Straight line
(c) Constant
(d) Curve
Answer:
(b) Straight line

Question 8.
Suppose D = 50 – 5P. When D is zero then ____________
(a) P is 10
(b) P is 20
(c) P is 5
(d) Pis-10
Answer:
(a) Pis 10

Question 9.
Suppose D = 150 – 50P. Then, the slope is
(a) -5
(b) 50
(c) 5
(d) – 50
Answer:
(d) – 50

Question 10.
Suppose determinant of a matrix A = 0, then the solution ____________
(a) Exists
(b) Does not exist
(c) Is infinity
(d) Is zero
Answer:
(b) Does not exist

Question 11.
State of rest is a point termed as ____________
(a) Equilibrium
(b) Non – Equilibrium
(c) Minimum Point
(d) Maximum Point
Answer:
(a) Equilibrium

Question 12.
Differentiation of constant term gives ____________
(a) one
(b) zero
(c) infinity
(d) non – infinity
Answer:
(b) zero

Question 13.
Differentiation of xⁿ is ____________
(a) nx ^{(n – 1)}
(b) nx ^{(n + 1)}
(c) zero
(d) one
Answer:
(a) nx ^{(n – 1)}

Question 14.
Fixed Cost is the ____________ term in cost function represented in mathematical form.
(a) Middle
(b) Price
(c) Quantity
(d) Constant
Answer:
(d) Constant

Question 15.
The first differentiation of Total Revenue function gives ____________
(a) Average Revenue
(b) Profit
(c) Marginal Revenue
(d) Zero
Answer:
(c) Marginal Revenue

Question 16.
The elasticity of demand is the ratio of ____________
(a) Marginal demand function and Revenue function
(b) Marginal demand function to Average demand function
(c) Fixed and variable revenues
(d) Marginal Demand function and Total demand function
Answer:
(b) Marginal demand function to Average demand function

Question 17.
If x + y = 5 and x – y = 3 then, Value of x ____________
(a) 4
(b) 3
(c) 16
(d) 8
Answer:
(a) 4

Question 18.
Integration is the reverse process of
(a) Difference
(b) Mixing
(c) Amalgamation
(d) Differentiation
Answer:
(d) Differentiation

Question 19.
Data processing is done by ____________
(a) PC alone
(b) Calculator alone
(c) Both PC and Calculator
(d) Pen drive
Answer:
(c) Both PC and Calculator

Question 20.
The command Ctrl + M is applied for ____________
(a) Saving
(b) Copying
(c) getting new slide
(d) deleting a slide
Answer:
(c) getting new slide

Part – B
Answer the following questions in one or two sentences

Question 21.
If 62 = 34 + 4x  what is x?
solution:
If 62 = 34 + 4x what is x
Given:
62 = 34 + 4x
34 + 4x = 62
4x = 62 – 34
4x = 28
x = \(\frac { 28 }{ 4 }\)
x = 7

Question 22.
Given the demand function q = 150 – 3p, derive a function for MR.
Solution:
Given:
q = 150 – 3p
\(\frac { dq }{ dq }\) = 0 – 3 (1)
\(\frac { dq }{ dq }\) = – 3
Revenue = price × quantity = p (150 – 3p)
= p (150 – 3p)
= 150p – 3p²
MR = \(\frac { dq }{ dq }\) = 150 \(\frac { dq }{ dq }\) -6p \(\frac { dq }{ dq }\)
= 150 (\(\frac { – 1 }{ 3 }\)) – 6p (\(\frac { – 1 }{ 3 }\))
= – 50 + 2p
= – 50 = 2 (\(\frac { 150 – q }{ 3 }\))
= 50 + 100 + \(\frac { – 2 q }{ 3 }\)
= 50 – \(\frac { 2 q }{ 3 }\)
= 50 – \(\frac { 2 }{ 3 }\) (150 – 3p)
MR = 2p – 50

Question 23.
Find the average cost function where TC = 60 + 10x +15x²
Solution:
Given:
Formula = \(\frac{TC}{x}\)
Average cost function = \(\frac{60}{x}\) + \(\frac{10x}{x}\) + \(\frac { 15x^{ 2 } }{ x } \)
Average cost = \(\frac{60}{x}\) + 10 + 15x

Question 24.
The demand function is given by x = 20 – 2p – p² where p and x are the price and the quantity respectively. Find the elasticity of demand for p = 2.5.
Solution:
Given:
x = 20 – 2p – p²
p = 2.5
e_d = (\(\frac { p }{ x }\)) (\(\frac { dx }{ dp }\))
If p = 2.5 then x,
x = 20 – 2 (2.5) – (2.5)²
= 20 – 5 – (6.25)
= 15 – 6.25
x = 8.75
Here x = 20 – 2p – p²
\(\frac { dx }{ dp }\) = 0 – 2 (1) – 2p
= -2 – 2p
If P = 2.5 then
\(\frac { dx }{ dp }\) = -2 – 2 (2.5)
= -2 – 5
\(\frac { dx }{ dp }\) = – 7
e_d = \(\frac { -2.5 }{ 8.75 }\) × – 7
= 0.2857 × – 7
e_d = 2

Question 25.
Suppose the price p and quantity q of a commodity are related by the equation q = 30 – 4p – p²
find :

1. e_d at p = 2
2. MR

Solution:
Given:
q = 30 – 4p – p²
1. e_d = (\(\frac { p }{ x }\))(\(\frac { dx }{ dp }\))
If P = 2 then
x = 30 – 4 (2) – 2²
= 30 – 8 – 4
=20 – 12
x = 18
\(\frac { dx }{ dp }\) =30 – 4p – p²
= 0 – 4 – 2p
= 0 – 4 – 2 (2)
= -4 -4
= -8
e_d = \(\frac { 2 }{ 18 }\) (-8)
x = – \(\frac { 16 }{ 18 }\)
e_d = – 0.88

2. MR
TR = p ×q
TR = p (30 – 4p – p²)
= 30p – 4p² – p³
MR = \(\frac { d(TR) }{ dp }\)
= 30 – 8p – 3p²
If p = 2
MR = 30 – 8 (2) – 3 (2)²
= 30 – 16 12
MR = 2

Question 26.
What is the formula for elasticity of supply if you know the supply function?
Solution:
Elasticity of supply = (\(\frac { p }{ q }\)) (\(\frac { dq }{ dp }\))

Question 27.
What are the main menus of MS Word?
Answer:

1. Home menu
2. Insert
3. Page layout
4. Reference
5. Review
6. View
7. Print layout
8. Outline
9. Task pane
10. Toolbars
11. Header and footer
12. Footnotes

Part – C
Answer the following questions in One Paragraph

Question 28.
Illustrate the uses of Mathematical Methods in Economics.
Answer:

1. Mathematical Methods help to present the economic problems in a more precise form.
2. Mathematical Methods help to explain economic concepts.
3. Mathematical Methods help to use a large number of variables in economic analyses.
4. Mathematical Methods help to quantify the impact or effect of any economic activity implemented by the Government or anybody. There are of course many other uses.

Question 29.
Solve for A: quantity demanded if 16x – 4 = 68 + 7x.
Solution:
Given:
16x  – 4 = 68 + 1x
16x – 7x = 68 + 4
9x = 72
x = (\(\frac { 72 }{ 9 }\))
x = 8

Question 30.
A firm has the revenue function R = 600q – 0.03q² and the cost function is C = 150q + 60,000, where q is the number of units produced. Find AR, AC, MR and MC.
Solution:
Given:
(I) Average Revenue = \(\frac{R}{q}\)
\(\frac { 600q-0.03q^{ 2 } }{ q } \) = \(\frac{600q}{q}\) – \(\frac { 0.03q^{ 2 } }{ q } \)
AR = 600 – 0.03q

(II) Average Cost = \(\frac{C}{q}\)
= \(\frac{150q}{q}\) + \(\frac{60000}{q}\)
AC = 150 + \(\frac{60000}{q}\)

(III) Marginal Revenue = \(\frac{dR}{dq}\)
R = 600q – 0.03q²
\(\frac{dR}{dq}\) = 600 – (0.03) (2q)
MR = 600 – 0.06q

(IV) Marginal Cost = \(\frac{dC}{dq}\)
C = 150q + 60000
MC = 150

Question 31.
Solve the following linear equations by using Cramer’s rule.
x₁ – x₂ + x₃ = 2
– x₁ – x₂ – x₃ = 0
– x₁ – x₂ – x₃ = – 6
Solution:

= 1 (- 1 – 1) + 1 (- 1 – 1) + 1 (- 1 + 1)
= 1(- 2) + 1 (0)
∆ = – 2 – 2
∆ = – 2 – 2
∆ = – 4

= 2 (- 1 – 1) + 1 (0 + 6) + 1 (0 – 6)
= 2 (- 2) + 1(6) + 1 (- 6)
= – 4 + 6 – 6
∆ = – 4

= 1 (0 – 6) – 2 (- 1 – 1)+1(- 6 + 0)
= 1 (- 6) – 2 (- 2) + 1 (- 6)
= – 6 + 4 – 6
= – 12 + 4
∆x₃ = -8

1 (- 6 + 0) + 1 (- 6 + 0) + 2 (- 1 + 1)
= 1 (- 6) + 1 (- 6) + 2 (0)
= – 6 – 6
∆x₃ = – 12

Question 32.
If a firm faces the total cost function TC = 5+ x² where x is output, what is TC when x is 10?
Solution:
Given:
TC = 5 + x²
If x = 10
TC = 5 + 10²
= 5 + 100
TC = 105

Question 33.
If TC = 2.5q³ – 13q² + 50q + 12 derive the MC function and AC function.
solution:
Given:
TC= 2.5q³ – 13q² + 50q + 12
Marginal cost function
MC = \(\frac { d(TC) }{ dQ }\)
= \(\frac { d }{ dq }\) [2.5q³ – 13q² + 50q + 12]
= 2.5 (3q²) – 13 (2q) + 50 (1) + 0
MC = 7.5q – 26q + 50
Average cost AC =\(\frac { TC }{ q }\)
= \(\frac{2.5 q^{3}-13 q^{2}+50 q+12}{q}\)
= \(\frac{2.5 q^{3}}{q}\) – \(\frac{13 q^{2}}{q}\) + \(\frac { 50q }{ q }\) + \(\frac { 12 }{ q }\)
AC = 2.5q – 13q + 50 + \(\frac { 12 }{ q }\)

Question 34.
What are the steps involved in executing an MS Excel Sheet?
Answer:
MS Excel is used in data analysis by using formulas. A spreadsheet is a large sheet of paper which contains rows and columns.
To start an excel there are various options.
Click Start → Program → Microsoft Excel
Double click the MS Excel Icon from the Desktop.

Part – D
Answer the following questions in about a page

Question 35.
A Research scholar researching the market for fresh cow milk assumes that Qt = f (Pt, Y, A, N, Pc) where Qt is the quantity of milk demanded, Pt is the price of fresh cow milk, Y is average household income, A is advertising expenditure on processed pocket milk, N is population and Pc is the price of processed pocket milk.

1. What does Qt= f (Pt, Y,A,N, Pc) mean in words?
2. Identify the independent variables.
3. Make up a specific form for this function. (Use your knowledge of Economics to deduce whether the coefficients of the different independent variables should be positive or negative.)

Solution:
1. Qt is the function of Pt, Y, A, N, Pc
The determinants of demand are
Pt = Price of fresh cow milk.
Y = Average household income
A = Advertising expenditure on processed pocket milk
N = Population
Pc = Price of processed pocket milk.

2. Y and N are independent variables

3. Average household income and population are directly proportional to quantity demanded of cow’s milk (ie if Y and N increases Qt also increase)
Price of fresh cow milk, advertising expenditure on pocket milk and price of processed pocket milk are inversely proportional to Qt.
There
Qt = – aPt + by – CA + dN – ePc

Question 36.
Calculate the elasticity of demand for the demand schedule by using differential calculus method P = 60 – 0.2 Q where price is

1. zero
2. Rs.20
3. Rs.40

Solution:
P = 60 – 0.2 Q
0.2 Q = 60 – P
(0.2 Q) 10 = (60 – p) 10
2 Q = 600 – 10p
Q = 300 – 5p
Given demand function Q = 300 – 5p
1. If P = 0 then Q = 300 – 5 (0)
= 300
\(\frac { dq }{ dp }\) = 300 – 5p
= 0 – 5
\(\frac { dq }{ dp }\) = – 5
e_d = \(\frac { p }{ p }\)(\(\frac { dq }{ dp }\))
= \(\frac { 0 }{ 300 }\)(-5)
e_d = 0

2. If p = 20 then Q = 300 = 5 (20)
= 200
e_d = \(\frac { 20 }{ 200 }\) (-5)
= – \(\frac { 100 }{ 200 }\)
e_d = – 0.5

3. If = 40 then Q = 300 – 5 (40)
= 300 – 200
Q = 100
e_d = \(\frac { p }{ q }\)(\(\frac { dq }{ dp }\))
= \(\frac { 40 }{ 100 }\) (-5)
e_d = – \(\frac { 200 }{ 100 }\)
e_d = -2

Question 37.
The demand and supply functions are pd=1600 – x² and ps = 2x² + 400 respectively. Find the consumer’s surplus and producer’s surplus at an equilibrium point.
Answer:
At equilibrium p_d = p_s
1600 – x² = 2x² + 400
– x² – 2x² = 400 – 1600
– 3x² = – 1200
x² = \(\frac { 1200 }{ 3 }\)
x² = 400
x = 20
If x = 20 p_o = 1600 – (20)²
= 1600 – 400
p_o = 1200
p_o x_o = 1200 × 20
= 24000

= 8000 – \(\frac { 8000 }{ 3 }\)
= \(\frac { 24000 – 8000 }{ 3 }\)
= \(\frac { 16000 }{ 3 }\)
C.S = 5333.3

Question 4.
What are the ideas of information and communication technology used in economics?
Answer:
Information and Communication Technology (ICT) is the infrastructure that enables computing faster and accurate

In economics the uses of mathematical and statistical tools need the support of ICT for data compiling, editing, manipulating and presenting the results.

Samacheer Kalvi 11th Economics Introduction To Micro-Economics Additional Questions and Answers

Match the following and choose the answer using the codes given below

Question 1.

(a) 1 2 3 4
(b) 2 3 4 1
(c) 3 4 2 1
(d) 4 3 1 2
Answer:
(c) 3 4 2 1

Question 2.

(a) 4 3 1 2
(b) 2 3 4 1
(c) 1 2 3 4
(d) 3 2 1 4
Answer:
(a) 4 3 1 2

Question 3.

(a) 1 2 3 4
(b) 3 4 1 2
(c) 4 3 1 2
(d) 2 3 4 1
Answer:
(b) 3 4 1 2

Choose the incorrect statement

Question 4.
(a) Differentiation of constant is zero
(b) Differentiation of xn is x
(c) Constant value is known as fixed cost
(d) x° = 1 when x = 0
Answer:
(d) x° = 1 when x = 0

Question 5.
(a) The population density of T.N is 480 as per 2011 census.
(b) There are 30 national highways in Tamil Nadu.
(c) Tamil Nadu has the highest installed wind energy capacity in India.
(d) The headquarters of southern railway is at Trichy
Answer:
(b) There are 30 national highways in Tamil Nadu.

Pick the odd one out

Question 6.
(a) Arithmetic
(b) Comparison
(c) Text concatenation
(d) Foot note
Answer:
(d) Foot note

Question 7.
(a) X = independent variable
(b) Y = dependent variable
(c) X = f (y)
(d) M – slope
Answer:
(c) X = f (y)

Choose the correct statement

Question 8.
(a) X + Y = 6 and X – Y = 2 then X = 4
(b) If D = 60 – 6P when D is 0 then P is 20
(c) In the equation 0.1 X² + 1 OX + 100 constant = 10
(d) If Y = 6X³ then slope is 9X:
Answer:
(a) X + Y = 6 and X – Y = 2 then X = 4

Choose the incorrect pair

Question 9.

Answer:
(c) \(\frac { d(c) }{ dx }\) = 0 where c is a variable

Question 10.

Answer:
(a) ∫f(x) dx – (i) F (x) + C

Fill in the blanks with suitable option given below

Question 11.
__________ is the first to use mathematics in economics.
(a) Giovanni Ceva
(b) William petty
(c) J.M.Keynes
(d) None
Answer:
(b) William petty

Question 12.
The formula for constructing a straight line is __________
(a) \(\mathrm{m}=\frac{\mathrm{y}_{2}-\mathrm{y}_{1}}{\mathrm{x}_{2}-\mathrm{x}_{1}}\)
(b) y = mx
(c) \(\frac { Change in x }{ Change in y }\)
(d) (y -y₁) = m (x – x₁)
Answer:
(d) (y -y₁) = m (x – x₁)

Question 13.
If the determinant ∆ = ?, then solution does not exist
(a) 1
(b) 0
(c) 2
(d) -1
Answer:
(b) 0

Question 14.
Power rule ∫xdx ______
(a) \(\frac{x^{2}}{n+1}\) + C
(b) \(\frac { pq }{ n + 1 }\) + C
(c) \(\frac{\mathrm{x}^{(\mathrm{n}+1)}}{\mathrm{n}+1}\) + C
(d) None
Answer:
(c) \(\frac{\mathrm{x}^{(\mathrm{n}+1)}}{\mathrm{n}+1}\) + C

Question 15.
______ is a rectangular array of numbers systematically arranged in rows and columns within brackets.
(a) Matrix
(b) Determinants
(c) Function
(d) None
Answer:
(a) Matrix

Choose the best option

Question 16.
__________ provides the solution of a system of linear equations with ‘n’ variables and ‘n’ equations
(a) Demand function
(b) Consumer’s surplus
(c) Equilibrium
(d) Cramer’s rule
Answer:
(d) Cramer’s rule

Question 17.
The first known writer to apply the mathematical method to economic problems was __________
(a) Giovanni Ceva
(b) William petty
(c) Keynes
(d) None
Answer:
(a) Giovanni ceva

Question 18.
In y = f (x) which is the independent variable
(a) f
(b) y
(c) x
(d) None
Answer:
(c) x

Question 19.
Formula for marginal cost is
(a) MC = \(\frac { d(TC) }{ dQ }\)
(b) MC = \(\frac { d(TC) }{ dP }\)
(c) MC = \(\frac { d(TC) }{ dQ }\)
(d) None
Answer:
(a) MC = \(\frac { d(TC) }{ dQ }\)

Question 20.
Function with a single independent variable are called _____
(a) Multivariate function
(b) Consumption function
(c) Simple univariate function
(d) None
Answer:
(c) Simple univariate function

Part – B
Answer the following questions in one or two sentences

Question 1.
What is economic analysis?
Answer:
Economic analysis is a systematic approach to determine the optimum use of scare resources and choose available alternatives and select the best alternative to achieve a particular objective.

Question 2.
What is the slope of a straight line ?
Answer:
Slope or gradient of the line represents the ratio of the changes in vertical and horizontal lines

Question 3.
State the phases of evolution of ICT?
Answer:

1. Computer
2. PC
3. Micro Processor
4. Internet and
5. Wireless links.

Question 4.
What are determinants?
Answer:
The determinant is an arrangement of the same elements of the corresponding matrix into rows and columns by enclosing vertical lines.

Question 5.
State the application of differential calculus.
Answer:

1. To find the rate of change in demand with respect to price.
2. To find the rate of change in income with respect to the investment.

Question 6.
What is ICT?
Answer:
Information and Communication Technology (ICT) is the infrastructure that enables computing faster and accurate.

Question 7.
What is a worksheet?
Answer:
A worksheet is a table like a document containing rows and columns with data and formula

Part – C
Answer the following questions in One Paragraph

Question 1.
The marginal cost function for producing x units is y = 23 + 16.x – 3.x2 and the total cost for producing zero unit is Rs. 40. Obtain the total cost function and the average cost function.
Solution:
Given Marginal cost functions
y = 23 + 16x – 3x²
C = 40

Average cost function = \(\frac { TC }{ x }\)
= \(\frac{23 x+8 x^{2}-x^{3}+40}{x}\)
AC = 23 + 8x – x + \(\frac { 40 }{ x }\)

Question 2.
Find the solution of the system of equations
5x₁ + 3x₂ = 30
6x₁ – 2X₂ = 8
Solution :

Question 3.
If the demand function is p = 35 – 2x – x² and the demand x_o is 3, what will be the consmer’s surplus
Solution:
Given:
p = 35 – 2x – x²
If x = 3 then
p = 35-2 (3) – 3²
= 35 – 6 – 9
p = 20

= 35 (3) – 9 – 9 – 60
= 105 – 9 – 9 – 60
CS = 27 units

Question 4.
Given the total cost function TC = 15 + 3Q2 + 7Q3 drive the marginal cost function.
Solution:
Given:
TC = 15 + 3Q² + 7Q²
MC = \(\frac { d(15) }{ dQ }\) + \(\frac{\mathrm{d}\left(3 \mathrm{Q}^{2}\right)}{\mathrm{d} \mathrm{Q}}\) + \(\frac{\mathrm{d}\left(7 \mathrm{Q}^{3}\right)}{\mathrm{d} \mathrm{Q}}\)
= 0+ 3 (2) Q + 7 (3) Q + (3) Q²
MC = 6Q + 21 Q²

Question 5.
Find the value of the determinant of the matrix
Solution:
Given:

= 3 (-5) -4 (-19) +7 (-3)
= -15 + 76 – 21
A = 40

Question 6.
Find the value of the determinant of the matrix A =.
Solution:
Given:

Part – D
Answer the following questions in about a page

Question 1.
Find the equation of a straight line which passes through two points (2,2) and (4, -8) which are (x₁, y₁) and (x₂, y₂) respectively.
Note: For drawing a straight line, at least two points are required. Many straight lines can pass through a single point.
Solution:
Here x₁ = 2 y_1- = 2 and x₂ = 4 y₂ = – 8
Formula for constructing a straight line.

Slope (m) = -5
y intercept = 12
Constant = C
This is of this from y = mx + C
y = 12 – 5x
When x = 0
y = 12
When y = 0
x = \(\frac { 12 }{ 5 }\) = 2.4

Question 2.
Find the solution of the equation system
Solution:
7x₁ – x₂ – x₃ = 0
10x₁ – 2x₂ + x₃ = 8
6x₁ + 3x₂ – 2x₃ = 7

= 7 (4 – 3) + 1 (-20 -6) -1 (30 + 12)
= 7 (1) + 1 (-26) -1 (42)
+ 7 -26 – 42
∆ = – 61

= 0 (4 -3) + 1 (-16 -7) – 1 (24+14)
= 0 + 1 (-23) – 1 (38)
= -23 – 38
= -61

= 7 (-16 – 7) – 0 (- 20 – 6) – 1 (70 – 48)
= 7 ( -23) + 0 (-20 – 6) – 1(70 – 48)
= – 161 – 22
= – 183

= 7(-14 -24) + 1 (70 – 48) + 1 (30 + 12)
= 7 (-38) + 1 (22) + 0
= – 266 + 22
= – 244

Students can Download Economics Chapter 10 Rural Economy Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Economics Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 10 Rural Economy

Samacheer Kalvi 11th Economics Rural Economy Text Book Back Questions and Answers

Part – A
Multiple Choice Questions

Question 1.
Which is considered as the basic unit for rural areas?
(a) Panchayat
(b) Village
(c) Town
(d) Municipality
Answer:
(b) Village

Question 2.
Which feature is identified with rural areas?
(a) Low population density
(b) High population density
(c) Low natural resources
(d) Low human resources
Answer:
(a) Low population density

Question 3.
Identify the feature of rural economy.
(a) Dependence on agriculture
(b) High population density
(c) Low level of population
(d) Low level of inequality
Answer:
(a) Dependence on agriculture

Question 4.
What percentage of the total population live in rural area, as per 2011 censes?
(a) 40
(b) 50
(c) 68.84
(d) 70
Answer:
(c) 68.84

Question 5.
How do you term people employed in excess over and above the requirements?
(a) Unemployment
(b) Underemployment or Disguised Unemployment
(c) Full employment
(d) Self-employment
Answer:
(b) Underemployment or Disguised Unemployment

Question 6.
What is the term used to denote the coexistence of two different features in an economy?
(a) Technology
(b) Dependency
(c) Dualism
(d) Inequality
Answer:
(c) Dualism

Question 7.
The process of improving the rural areas, rural people and rural living is defined as
(a) Rural economy
(b) Rural economics
(c) Rural employment
(d) Rural development
Answer:
(d) Rural development

Question 8.
Identify the agriculture related problem of rural economy.
(a) Poor communication
(b) Small size of landholding
(c) Rural poverty
(d) Poor banking network
Answer:
(b) Small size of landholding

Question 9.
The recommended nutritional intake per person in rural areas.
(a) 2100 calories
(b) 2100 calories
(c) 2300 calories
(d) 2400 calories
Answer:
(d) 2400 calories

Question 10.
Indicate the cause for rural poverty.
(a) Lack of non-farm employment
(b) High employment
(c) Low inflation rate
(d) High investment.
Answer:
(a) Lack of non-farm employment

Question 11.
What is the other name for concealed unemployment?
(a) Open
(b) Disguised
(c) Seasonal
(d) Rural
Answer:
(b) Disguised

Question 12.
How do you term the employment occurring only on a particular season?
(a) Open
(b) Disguised
(c) Seasonal
(d) Rural
Answer:
(c) Seasonal

Question 13.
Identify an example for rural industries?
(a) Sugar factory
(b) Mat making industry
(c) Cement industry
(d) Paper industry
Answer:
(b) Mat making industry

Question 14.
How much share of rural families in India is in debt?
(a) Half
(b) One fourth
(c) Two third
(d) Three fourth
Answer:
(d) Three fourth

Question 15.
Identify the cause for rural indebtedness in India.
(a) Poverty
(b) High population
(c) High productivity
(d) Full employment
Answer:
(a) Poverty

Question 16.
In which year, Regional Rural Banks came into existence?
(a) 1965
(b) 1970
(c) 1975
(d) 1980
Answer:
(c) 1975

Question 17.
Identify the year of the launch of MUDRA Bank?
(a) 1995
(b) 2000
(c) 2010
(d) 2015
Answer:
(d) 2015

Question 18.
Identify the year in which National Rural Health Mission was launched.
(a) 2000
(b) 2005
(c) 2010
(d) 2015
Answer:
(b) 2005

Question 19.
Identify the advantages of rural roads.
(a) Rural marketing
(b) Rural employment
(c) Rural development
(d) All the above
Answer:
(d) All the above

Question 20.
“An Indian farmer is born in debt, lives in debt, dies in debt, and bequeaths debt”- who said this?
(a) Adam Smith
(b) Gandhi
(c) Amartya Sen
(d) Sir Malcolm Darling
Answer:
(d) Sir Malcolm Darling

Part – B
Answer the following questions in one or two sentences

Question 21.
Define Rural Economy.
Answer:

1. Rural Economics deals with the application of economic principles in understanding and developing rural areas.
2. Rural areas are geographical areas located outside towns and cities.
3. Rural Economy refers to villages and rural community refers to people living in villages.

Question 22.
What do you mean by Rural Development?
Answer:
According to the world bank, “Rural development is a strategy designed to improve the economic and social life of a specific group of people rural poor”

Question 23.
Rural Poverty – Define.
Answer:

1. Rural poverty refers to the existence of poverty in rural areas.
2. Poverty in India has been defined as the situation in which an individual fails to earn sufficient income to buy the basic minimum of subsistence.
3. On the basis of recommended nutritional intake, persons consuming less than 2400 calories per day in rural areas are treated as they are under rural poverty.

Question 24.
Define Open Unemployment.
Answer:
In open unemployment, unemployed persons are identified as they remain without work. This type of unemployment is found among agricultural labourers, rural artisans, and literate persons.

Question 25.
What is meant by Disguised Unemployment?
Answer:
Disguised unemployment is a situation where many are employed below their productive capacity and even if they are withdrawn from work the output will not diminish.

Question 26.
Define Cottage Industry.
Answer:
Cottage industries are generally associated with agriculture and provide both part-time and full-time jobs in rural areas.

Question 27.
What do you mean by Micro Finance?
Answer:

1. Micro Finance is also known as microcredit is a financial service that offers loans, savings, and insurance to entrepreneurs and small business owners who do not have access to traditional sources of capital like banks or investors.
2. The goal of micro-financing is to provide individuals with money to invest in themselves or their business.
3. Microfinance is available through microfinance institutions, which range from small non-profit organizations to larger banks.

Question 28.
State any two causes of the housing problem in rural areas.
Answer:

1. Rapid adaptation of nuclear families.
2. Problems in the provision of proper water supply, good sanitation, proper disposal of sewage.

Question 29.
Define Rural Electrification.
Answer:

1. Rural Electrification refers to providing electrical power to rural areas.
2. The main aims of rural electrification are to provide electricity to agricultural operations and to enhance agricultural productivity.
3. To increase cropped area, to promote rural industries, and to lighting the villages.
4. In order to improve this facility, the supply of electricity is almost free for agricultural purposes in many states, and the electricity tariff is charged in rural areas is kept very low.

Question 30.
State any two factors hindering Rural Electrification in India.
Answer:

1. Lack of funds
2. Interstate disputes
3. Uneven terrain

Part – C
Answer the following questions in One Paragraph

Question 31.
State the importance of Rural Development.
Answer:
Importance of Rural Development:

1. A major share of the population lives in rural areas, and their development and contributions are very much supportive for nation-building activities. India cannot be developed by retaining rural as backward.
2. The rural economy supports the urban sectors by way of supplying drinking water, milk, food, and raw materials. Hence, the backwardness of the rural sector would be a major impediment to the overall progress of the economy.
3. Improvements in education, health, and sanitation in villages can help avoid many urban problems namely, begging, rag-picking and roadside slumming.
4. The development of agriculture and allied activities are necessary for providing gainful employment in rural areas and improving overall food production.

Question 32.
Explain the causes for Rural Backwardness.
Answer:

1. The skewed distribution of land.
2. Lack of non-farm employment.
3. Lack of public sector investment.
4. Inflation.
5. Low productivity.
6. The unequal benefit of growth.
7. Low rate of economic growth.
8. More emphasis on large industries.
9. Social evils.

Question 33.
Enumerate the remedial measures to Rural Poverty.
Answer:
Remedial measures:

1. Since rural unemployment and rural poverty are interrelated, the creation of employment opportunities would support the elimination of poverty.
2. Poverty alleviation schemes and programmes have been implemented, modified, consolidated, expanded, and improved over time.
3. However, unemployment, begging, rag-picking, and slumming continues.
4. Unless employment is given to all the people poverty cannot be eliminated.

Question 34.
What are the remedial measures for Rural Unemployment?
Answer:

1. Subsidiary occupation: To reduce seasonal unemployment rural people should be encouraged to adopt subsidiary occupation.
2. Rural works programme: Rural works programme should be planned during the offseason to provide gainful employment.
3. Irrigation facilities: Irrigation facilities should be expanded to enable the farmers to adopt multiple cropping.
4. Rural industrialization: New industries should be set up in rural areas.
5. Technical education: Employment oriented courses should be introduced to literate the youth to start their own units.

Question 35.
Write a note on Regional Rural Banks.
Answer:

1. Regional Rural Banks came into existence based on the recommendation made by a working group on rural banks appointed by the Government of India in 1975.
2. RRBs are recommended with a view to developing the rural economy by providing credit and other facilities particularly to the small and marginal farmers, agricultural labourers, artisans, and small entrepreneurs.
3. RRBs are set up by the joint efforts of the Centre and State Governments and commercial banks.
4. At present, there are 64 Regional Rural Banks in India.
5. The RRBs confine their lendings only to the weaker sections and their lending rates are at par with the prevailing rate of co-operative societies.

Question 36.
Mention the features of SHGs.
Answer:

1. SHG is an economically homogeneous group formed through a process of self-selection based upon the affinity of its members.
2. Most SHGs are women’s groups with membership ranging between 10 and 20.
3. SHGs have well-defined rules and by-laws, hold regular, meetings and maintain records and savings and credit discipline.
4. SHGs are self-managed institutions characterized by participatory and collective decision making.

Question 37.
List out the objectives of MUDRA Bank.
Answer:

1. Regulate the lender and the borrower of microfinance and bring stability to the microfinance system.
2. Extend finance and credit support to Microfinance Institutions [MFI] and agencies that lend money to small businesses, retailers, self-help groups, and individuals.
3. Register all MFIs and introduce a system of performance rating and accreditation for the first time.
4. Offer a Credit Guarantee scheme for providing guarantees to loans being offered to micro-businesses.
5. Introduce appropriate technologies to assist in the process of efficient lending, borrowing, and monitoring of distributed capital.

Part – D
Answer the following questions in about a page

Question 38.
‘The features of Rural Economy are peculiar’- Argue.
Answer:
The Rural economy has very peculiar features which are :

1. The village is an institution: The village is a primary institution and it satisfies almost all the needs of the rural community.
2. Dependence on agriculture : Agriculture and allied activities are the main occupations in rural areas.
3. Life of rural people: Life styles in villages are very simple. Public services like education, housing, health and sanitation, transport and communication, banking, roads and markets are limited and unavailable.
4. Population density : Density of population is very low and houses are scattered in the entire villages.
5. Employment: There exists unemployment, seasonal unemployment and underemployment in rural areas.
6. Poverty: According to the 2011 – 12 estimates about 22 crores of people in rural areas live below the poverty line.
7. Indebtedness: Sir Malcolm Darling stated that an Indian farmer is born in debt, lives in debt, dies in debt and bequeaths debt.
8. Rural income: As the rural economy is not sufficiently vibrant to provide them with jobs or self-employment opportunities the income of the rural people is constrained.
9. Dependency: Rural households are dependent on social grants and remittances from family members working in urban areas and cities.
10. Dualism: Dualism means the co-existence of two extremely different features which is the common characteristics in a rural area.
11. Inequality: The distribution of income, wealth, and assets are highly skewed among rural people.
12. Migration: Rural people are forced to migrate to urban areas to seek employment which gives rise to the formation of cities. Enmity and lack of basic amenities in rural areas also push the people to migrate. This is called double poisoning by Schumacher.

Question 39.
Discuss the problems of the Rural Economy.
Answer:
Rural areas are facing a number of problems relating to,

1. People
2. Agriculture
3. Infrastructure
4. Economy
5. Society and Culture
6. Leadership and
7. Administration.

The problems of the rural economy are discussed below.

1. People Related Problems:
The problems related to individuals and their standard of living consist of illiteracy, lack of technical know-how, low level of confidence, dependence on sentiments and beliefs, etc.

2. Agriculture Related Problems:
The problems related to agriculture include as follows,

• Lack of expected awareness, knowledge, skill, and attitude.
• Unavailability of inputs.
• Poor marketing facility.

3. Infrastructural Related problems:
Poor infrastructure facilities like, water, electricity, transport, educational institutions, communication, health, employment, storage facility, banking, and insurance are found in rural areas.

4. Economics related problems:
The economic problems related to rural areas are,

• Inability to adopt high-cost technology.
• The high cost of inputs.
• Underprivileged rural industries.
• Low income
• Indebtedness
• Existence of inequality in landholdings and assets.

5. Leadership Related Problems:
The Specific leadership-related problems found in rural areas are,

• Leadership among the hands of inactive and incompetent people
• Self-interest of leaders
• Biased political will
• Less bargaining power
• Negation skills and dominance of political leaders

6. Administrative Problems:
The rural administrative problems consist of

• Political interference
• Lack of motivation and interest
• Low wages in villages
• Improper utilization of budget
• Absence of monitoring
• Implementation of the rural development programme.

Question 40.
Analyze the causes for Rural Indebtedness.
Answer:
1. Poverty of farmers: The vicious circle of poverty fore es the farmers to borrow for consumption, cultivation, and celebrations. Thus, poverty’s debt and high rates of interest hold the farmer in the grip of money lenders.

2. Failure of monsoon: Frequent failure of monsoon is a curse to the farmers and they have to suffer due to the failure of nature. Therefore, farmers find it difficult to identify good years to repay their debts.

3. Litigation: Due to land disputes litigation in the court compels them to borrow heavily. Being uneducated and ignorant they are caught in the litigation process and dry away their savings and resources.

4. Moneylenders and high rate of interest: The rate of interest charged by the local money lenders is very high and the compounding of interest leads to perpetuating indebtedness of the farmer.

Samacheer Kalvi 11th Economics Rural Economy Additional Questions and Answers

Part-A
Choose the best options

Question 1.
According to the 2011 population census, there are ___________ villages in India.
(a) 6,40,867
(b) 3,40,867
(c) 4,40,867
(d) 5,40,867
Answer:
(a) 6,40,867

Question 2.
Of 121 crore total population ___________ percent lives in rural areas.
(a) 64.88
(b) 68.84
(c) 68.48
(d) 88.64
Answer:
(b) 68.84

Question 3.
___________ are geographical areas located outside towns and cities.
(a) Townships
(b) Corporations
(c) Rural areas
(d) None
Answer:
(c) Rural areas

Question 4.
Total percentage of poverty in 2009-2010
(a) 33.80
(b) 38.30
(c) 33.08
(d) 80.33
Answer:
(a) 33.80

Question 5.
In 2009, the total number of micro finance institutions in India was around ___________
(a) 140
(b) 150
(c) 160
(d) 170
Answer:
(b) 150

Question 6.
SHG Bank Linked Programme (SBLP) was started in ___________
(a) 1991
(b) 1990
(c) 1992
(d) 1993
Answer:
(c) 1992

Question 7.
Micro Units Development and Refinance Agency is ___________
(a) IRDB
(b) MUDRA
(c) BUNDAN
(d) ICICI
Answer:
(b) MUDRA

Question 8.
MUDRA Bank was started in the year ___________
(a) 2011
(b) 2012
(c) 2015
(d) 2013
Answer:
(c) 2015

Question 9.
___________ was the first professor of economics at Madras University
(a) Gilbert Slater
(b) Samuelson
(c) Marshall
(d) Manmohan Singh
Answer:
(a) Gilbert Slater

Question 10.
National Rural Health Mission was launched on ___________
(a) 2001
(b) 1991
(c) 2005
(d) 2000
Answer:
(c) 2005

Question 11.
___________ are set up with a view to developing the rural economy by providing credit and other facilities to small and marginal farmers.
(a) MUDRA Bank
(b) RRB
(c) SHG
(d) NABARD
Answer:
(b) RRB

Match the following and choose the answer using the codes given below

Question 1.

(a) 1 2 3 4
(b) 2 1 3 4
(c) 4 3 2 1
(d) 3 4 1 2
Answer:
(b) 2 1 3 4

Question 2.

(a) 4 3 2 1
(b) 2 1 4 3
(c) 3 4 1 2
(d) 1 2 3 4
Answer:
(c) 3 4 1 2

Choose the correct option

Question 3.
The national rural health mission was established in
(a) March 12, 2005
(b) June 12, 2005
(c) April 12, 2005
(d) June 13, 2005
Answer:
(c) April 12, 2005

Question 4.
The gross national happiness index is
(a) GDP
(b) HDF
(c) WEI
(d) GNHI
Answer:
(d) GNHI

Question 5.
The poverty line is calculated on the basis of
(a) Based on inflation
(b) Based on poverty
(c) Based on income or consumption
(d) Based on unemployment
Answer:
(c) Based on income or consumption

Fill in the blanks with the suitable option given below

Question 6.
Microcredit is also known as
(a) Microfinance
(b) Small finance
(c) Large finance
(d) None
Answer:
(a) Microfinance

Question 7.
The co-existence of two extremely different features is called as
(a) Unity
(b) Dualism
(c) Trism
(d) None
Answer:
(b) Dualism

Question 8.
The first economics professor of madras university was
(a) A.K. Sen
(b) Charan Singh
(c) Manmohan Singh
(d) Gilbert Slater
Answer:
(d) Gilbert Slater

Choose the incorrect statement

Question 9.
(a) Physical quality of life index is PQLI
(b) The existence of poverty in rural areas is called rural poverty
(c) SSI s are also known as micro, small and medium enterprises (MSMEs)
(d) Petter diamond was the first economics professor of madras university
Answer:
(d) Petter diamond was the first economics professor of madras university

Question 10.
(a) MUDRA is micro units development and Refinance Agency Bank
(b) NRHM is National Rural Health Mission.
(c) The length of roads in India as of 2018 is 24 lakh kms.
(d) PURA is the provision of urban facilities for rural areas.
Answer:
(c) The length of roads in India as of 2018 is 24 lakh kms.

Choose the incorrect pair

Question 11.

Answer:
(c) NHRM (iii) Rural health

Question 12.

Answer:
(d) All Indian Debt and Investment Survey (iv) AIDS

Question 13.

Answer:
(d) National Food Security (iv) 2013

Question 14.

Answer:
(a) Adarsh Gram Sadak Yojana (i) 2010

Choose the correct statement

Question 15.
(a) Unemployment is a situation in which a person who is unwilling to work employed,
(b) According to 2011 12 estimates 42 crore village population list below the poverty line.
(c) In 2015, 60 crore people lived in villages.
(d) Sir Malcolm Darling stated that ‘An Indian farmer is a bom in debt, lives in debt, dies in debt and bequeaths debt’
Answer:
(d) Sir Malcolm Darling stated that ‘An Indian farmer is a bom in debt, lives in debt, dies in debt and bequeaths debt’

Question 16.
(a) Number of people living per sq. km is called population scarcity.
(b) There are 5,40,867 villages in India.
(c) The concept of ‘Double poisoning’ was coined by Schumacher.
(d) In 2009-10, the total percentage of poverty in India is 54.10
Answer:
(c) The concept of ‘Double poisoning’ was coined by Schumacher.

Pick the odd one out

Question 17.
(a) Petter Diamond
(b) A.K.Sen
(c) Dale Mortensen
(d) Christopher Pissarides
Answer:
(b) A.K.Sen

Question 18.
(a) NCC
(b) IRDP
(c) TRYSEM
(d) MGNREGS
Answer:
(a) NCC

Analyze the reason for the following

Question 19.
Assertion (A) : Creation of employment opportunities eliminate poverty in rural areas.
Reason (R) : Rural unemployment and rural poverty are interrelated.
(a) (A) is true; but (R) is false
(b) Both (A) and (R) are false
(c) Both (A) and (R) are true but (R) is not the correct explanation of (A)
(d) Both (A) and (R) are true (R) is the correct explanation of (A)
Answer:
(d) Both (A) and (R) are true (R) is the correct explanation of (A)

Question 20.
Assertion (A) : Agricultural operations are seasonal in nature.
Reason (R) : To reduce seasonal unemployment rural people should be encouraged to adopt subsidiary occupations.
(a) Both (A) and (R) are true, (R) is the correct explanation of (A)
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)
(c) Both (A) and (R) are false.
(d) (A) is false but (R) is true.
Answer:
(b) Both (A) and (R) are true, (R) is not the correct explanation of (A)

Part – B
Answer the following questions in one or two sentences

Question 1.
Name some of the economic indicators?
Answer:
Human Development Index (HDI), Women Empowerment Index (WEI), Gender Disparity Index (GDI), Physical Quality of Life Index (PQLI), and Gross National Happiness Index (GNHI).

Question 2.
How can you measure poverty by nutritional index?
Answer:
On the basis of recommended nutritional intake, persons consuming less than 2400 calories per day is rural areas are considered as rural poor.

Question 3.
What is unemployment?
Answer:
Unemployment is a situation in which a person actively searching for employment but unable to find work at the prevailing wage rate.

Question 4.
Write a note on seasonal unemployment?
Answer:
In seasonal unemployment, employment occurs only in a particular season and workers remain unemployed in the remaining period of a year.

Question 5.
Write a note on NRHM.
Answer:
The National Rural Health Mission (NRHM) was launched on 12th April 2005, to provide accessible, affordable and quality health care to the vulnerable groups in rural areas.

Question 6.
What is population density?
Answer:
Population density is the number of persons living per square kilometer.

Part – C
Answer the following questions in One Paragraph

Question 1.
What are the types of rural unemployment?
Answer:

1. Open unemployment: Unemployed persons are identified as they remain without work.
2. Concealed unemployment: Many are employed below their productive capacity and even if they are withdrawn from work the output will not diminish. It is also called disguised unemployment or underemployment.
3. Seasonal unemployment: Employment occurs only during a particular season and the remaining period of a year the rural people are unemployed or partially employed.

Question 2.
Explain about village industries.
Answer:
Village industries are traditional in nature and depend on the local raw material. They cater to the needs of the local population.
(Eg.) Gur and Khandsari, Cane and Bamboo basket, Shoemaking, Pottery, and Leather tanning.

Question 3.
Write a note on rural indebtedness.
Answer:
Rural indebtedness refers to the situation of the rural people who are unable to repay the loan accumulated over a period. Existence of the rural indebtedness indicates the weak financial infrastructure of our country in reaching the needy farmer’s landless people and agricultural labourers.

Question 4.
Write a note on rural roads.
Answer:
Rural roads constitute the very lifeline of the rural economy. A well-constructed road network in rural areas would bring several benefits including the linking of remote villages with urban centres, reduction in the cost of transportation of agricultural inputs, and promotion of marketing for rural produces.

Part – D
Answer the following questions in about a page

Question 1.
Explain the causes for rural unemployment.
Answer:
1. Absence of skill development and employment generation: Lack of Government initiatives to give required training and then to generate employment opportunities.

2. Seasonal nature of agriculture: Agricultural operations are seasonal in nature, so non-farm employment opportunities must be created to reduce seasonal unemployment.

3. Lack of subsidiary occupation: Rural people are not able to start subsidiary occupations due to shortages of funds for investment and lack of proper marketing arrangements.

4. Mechanization of agriculture: Mechanization of agricultural operations reduces employment opportunities for farm labour.

5. Capital – Intensive technology: The expanding private industrial sector in urban areas do not create additional employment opportunities due to the application of capital intensive technologies.

6. Defective system of education: The present system of education has also aggravated the rural unemployment problem. Students want to get degrees only, not any skill. Degrees should be awarded only on the basis of skills acquired.

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Tamilnadu Samacheer Kalvi 11th Economics Solutions Chapter 8 Indian Economy Before and After Independence

Samacheer Kalvi 11th Economics Indian Economy Before and After Independence Text Book Back Questions and Answers

Part – A
Multiple Choice Questions

Question 1.
The arrival of Vasco da Gama in Calicut, India
(a) 1498
(b) 1948
(c) 1689
(d) 1849
Answer:
(a) 1498

Question 2.
In 1614 Sir Thomas Roe was successful in getting permission from
(a) Akbar
(b) Shajakan
(c) Jahangir
(d) Noorjakhan
Answer:
(c) Jahangir

Question 3.
The power for governance of India was transferred from the East India Company (EIC) to the British crown in
(a) 1758
(b) 1858
(c) 1958
(d) 1658
Answer:
(b) 1858

Question 4.
Ryotwari system was initially introduced in _______
(a) Kerala
(b) Bengal
(c) Tamil Nadu
(d) Maharastra
Answer:
(c) Tamil Nadu

Question 5.
First World War started in the year _______
(a) 1914
(b) 1814
(c) 1941
(d) 1841
Answer:
(a) 1914

Question 6.
When did the Government of India declared its first Industrial Policy ?
(a) 1956
(b) 1991
(c) 1948
(d) 2000
Answer:
(c) 1948

Question 7.
The objective of the Industrial Policy 1956 was
(a) Develop heavy industries
(b) Develop agricultural sector only
(c) Develop private sector only
(d) Develop cottage industries only
Answer:
(a) Develop heavy industries

Question 8.
The industry which was de-reserved in 1993 ?
(a) Railways
(b) Mining of copper and zinc
(c) Atomic energy
(d) Atomic minerals
Answer:
(b) Mining of copper and zinc

Question 9.
The father of Green Revolution in India was _______
(a) M.S. Swaminathan
(b) Gandhi
(c) Visweswaraiah
(d) N.R. Viswanathan
Answer:
(a) M.S. Swaminathan

Question 10.
How many commercial banks were nationalised in 1969 ?
(a) 10
(b) 12
(c) 14
(d) 16
Answer:
(c) 14

Question 11.
The main objective of nationalisation of banks was _______
(a) Private social welfare
(b) Social welfare
(c) To earn
(d) Industries monopoly
Answer:
(b) Social welfare

Question 12.
The Planning Commission was setup in the year _______
(a) 1950
(b) 1955
(c) 1960
(d) 1952
Answer:
(a) 1950

Question 13.
In the first five year plan, the top priority was given to _______ Sector.
(a) Service
(b) Industrial
(c) Agriculture
(d) Bank
Answer:
(c) Agriculture

Question 14.
Tenth Five year plan period was _______
(a) 1992-1997
(b) 2002-2007
(c) 2007-2012
(d) 1997-2002
Answer:
(b) 2002-2007

Question 15.
According to HDR (2016), India ranked _______ out of 188 countries.
(a) 130
(b) 131
(c) 135
(d) 145
Answer:
(b) 131

Question 16.
Annual Plans formed in the year _______
(a) 1989-1991
(b) 1990-1992
(c) 2000-2001
(d) 1981-1983
Answer:
(b) 1990-1992

Question 17.
The Oldest large scale industry in India ________
(a) cotton
(b) jute
(c) steel
(d) cement
Answer:
(a) cotton

Question 18.
Human development index (HDI) was developed _________
(a) Jawaharlal Nehru
(b) M.K.Gandhi
(c) Amartiya Sen
(d) Tagore
Answer:
(c) Amartiya Sen

Question 19.
The main theme of the Twelth Five Year Plan __________
(a) faster and more inclusive growth
(b) growth with social Justice
(c) socialistic pattern of society
(d) faster, more inclusive and sustainable growth
Answer:
(d) faster, more inclusive and sustainable growth

Question 20.
The PQLI was developed by _______
(a) Planning Commission
(b) Nehru
(c) Morris
(d) Morris
Answer:
(c) Morris

Part – B
Answer the following questions in one or two sentences

Question 21.
What are the Phases of colonial exploitation of India?
Answer:

1. India was a colony for a long time. Colonialism refers to a system of political and social relations between two countries, of which one is the ruler and the other is its colony.
2. The ruling country not only has political control over the colony, but it also determines the economic policies of the subjugated country.
3. The people living in a colony cannot take independent decisions in respect of the utilization of the country’s resources and important economic activities.
4. India had the bitter experience of colonialism.

Question 22.
Name out the different types of land tenure that existed in India before Independence.
Answer:

1. Zamindari system
2. Mahalwari system
3. Ryotwari system

Question 23.
State the features that distinguish a land tenure system from other systems.
Answer:

1. Land Tenure refers to the system of land ownership and management.
2. The features that distinguish a land tenure system from the others relate to the following:
   • Who owns the land;
   • Who cultivate the land;
   • Who is responsible for paying the land revenue to the government.
3. Based on these questions, three different types of land tenure existed in India before Independence. They were Zamindari System, Mahalwari System, and Ryotwari System.

Question 24.
List out the weaknesses of the Green Revolution.
Answer:

1. Indian agriculture was still a gamble of the monsoons.
2. This strategy needed heavy investment.
3. The income gap has increased
4. Increased unemployment among agricultural labourers.
5. Reduced the soil fertility and spoiled human wealth.

Question 25.
What are the objectives of the Tenth five-year plan?
Answer:
Tenth Five Year Plan [2002 – 2007]

1. This plan aimed to double the per capita income of India in the next 10 years.
2. It aimed to reduce the poverty ratio to 15% by 2012.
3. Its growth target was 8.0% but it achieved only 7.2%

Question 26.
What is the difference between HDI and PQLI?
Answer:

1. Human Development Index: It is constructed based on life expectancy index, Education index, and GDP per capita.
2. Physical quality of life index: The PQLI is a measure to calculate the quality of life.

Question 27.
Mention the indicators which are used to calculate HDI.
Answer:
HDI is based on the following three indicators:

1. Longevity is measured by life expectancy at birth.
2. Educational attainments.
3. Standard of living is measured by real GDP per capita [PPP $].

Part – C
Answer the following questions in one Paragraph

Question 28.
Explain the Period of Merchant Capital.
Answer:

1. The period of merchant capital was from 1757 to 1813.
2. The only aim of the East India company was to earn profit by establishing monopoly trade.
3. During this period, India had been considered as the best hunting ground for capital
4. The objective of monopoly trade was fulfilled by achieving political control.
5. The company administration succeeded in generating huge surpluses which were repatriated to England.

Question 29.
The Handicrafts declined in India in British Period. Why?
Answer:

1. The Indian handicrafts products had a worldwide market.
2. Indian exports consisted chiefly of hand weaved cotton and silk fabrics, calicoes, artistic wares, wood carving, etc.
3. Through discriminatory tariff policy, the British Government purposefully destroyed the handicrafts.
4. With the disappearance of nawabs and kings, there was no one to protect Indian handicrafts.
5. Indian handicraft products could not compete with machine-made products.
6. The introduction of railways in India increased the domestic market for British goods.

Question 30.
Elucidate the different types of land tenure systems in colonial India.
Answer:
The three types of land tenure systems are Zamindari, Mahalwari, and Ryotwari systems.

1. Zamindari system or the landlords: This system was created in 1793, after the introduction of the permanent settlement act. Under this system, the landlords were declared as the owners of the land. They were responsible to pay the land revenue. The share of the rent to the government is fixed at 10/11th and the balance is zamindar’s remuneration.

2. Mahalwari system or communal farming: The ownership of the land was maintained by the collective body of villagers which served as a unit of management. They distribute the land and collect revenue and pay it to the state.

3. Ryotwari or the owner – cultivator system: The ownership rights of use and control of land were held by the tiller himself.

Question 31.
State the reasons for the nationalization of commercial banks.
Answer:

1. After Independence, the Government of India adopted planned economic development.
2. Five-year plans came into existence in 1951.
3. The main objective of economic planning aimed at social welfare.
4. Before Independence commercial banks were in the private sector.
5. These commercial banks failed in helping the Government to achieve social objectives of planning.
6. Therefore, the government decided to nationalize 14 major commercial banks on 19 July 1969.
7. In 1980, again the government took over another 6 commercial banks.

Question 32.
Write any three objectives of Industrial Policy 1991.
Answer:

1. Ensuring rapid industrial development in a competitive environment.
2. Enhancing support to the small scale sector.
3. Providing more incentives for industrialization of the backward areas.

Question 33.
Give a note on Twelfth Five Year Plan.
Answer:

1. Its main theme is “Faster, More Inclusive and Sustainable Growth”.
2. Its growth rate target is 8%.
3. The Indian Independence the Five Year Plans of India played a very prominent role in the economic development of the country.
4. These plans had guided the Government as to how it should utilize scarce resources so that maximum benefits can be gained.
5. It is worthy to mention here that the Indian Government adopted the concept of five-year plans from Russia.

Question 34.
What is PQLI?
Answer:
Morris D Morris developed the physical quality of life index (PQLI). The PQLI is a measure to calculate the quality of life.
PQLI includes three indicators life expectancy, infant mortality rate, and literacy rate. A scale of each indicator ranges from the number 1 to 100. Represents the worst performance and 100 is the best performance.
HDI includes income while PQLI does not. PQLI has only the physical aspects of like.

Part – D
Answer the following questions in about a page

Question 35.
Discuss the Indian economy during the British Period.
Answer:

1. India’s sea route trade to Europe started only after the arrival of Vasco da Gama in Calicut, India on May 20, 1498.
2. The Portuguese had traded in Goa as early as 1510.
3. In 1601 the East India Company was chartered, and the English began their first inroads into the Indian ocean.
4. In 1614 Sir Thomas Roe was successful in getting permission from Jahangir for setting up factories and slowly moved all parts of India.
5. Hundred years after the Battle of Plassey, the rule of the East India Company finally did come to an end.
6. In 1858, British Parliament passed a law through which the power for the governance of India was transferred from the East India Company [EIC] to the British Crown.
7. Even the transfer of power from the East India Company to the British Crown did not materially alter the situation.
8. Britain had exploited India over a period of two centuries of its colonial rule.
9. On the basis of the form of colonial exploitation, economic historians have divided the whole period into three phases:
10. The period of merchant Capital
11. The period of Industrial Capital
12. The period of Finance Capital

Question 36.
Explain the role of SSIs in economic development?
Answer:

1. SSIs provide employment:

• SSIs use labor-intensive techniques thus reduce the problem of unemployment to a great extent.
• They provide employment to people in villages and unorganized sectors.
• The employment – capital ratio is high for the SSIs.

2. SSIs bring balanced regional development: SSIs remove regional disparities by industrializing rural and backward areas and bring balanced regional development.

3. Help in the mobilization of local resources: SSIs help to mobilize and utilize local resources like small savings, entrepreneurial talent etc.,

4. Pave for optimization of capital: SSIs require less capital per unit of output. They function as a stabilizing force by providing output-capital ratio as well as high employment capital ratio.

5. Promote exports: SSIs earn valuable foreign exchange through exports from India.

6. Complement large scale industries: SSIs serve as ancillaries to large scale units.

7. Meet consumer demands: SSIs serves as an anti-inflationary force by providing goods of daily use.

8. Develop entrepreneurship: They promote self-employment and a spirit of self-reliance in society. They help to increase the per capita income. They help in distributing national income in a more efficient and equitable manner.

Question 37.
Explain the objectives of the nationalization of commercial banks.
Answer:

The Government of India nationalized the commercial banks to achieve the following objectives:

1. The main objective of nationalization was to attain social welfare. Sectors such as agriculture, small and village industries were in need of funds for their expansion and further economic development.
2. The nationalization of banks helped to curb private monopolies in order to ensure a smooth supply of credit to socially desirable sections.
3. In India, nearly 70% of population lived in rural areas. Therefore it was needed to encourage the banking habit among the rural population.
4. Nationalization of banks was required to reduce the regional imbalances where the banking facilities were not available.
5. Before Independence, the numbers of banks were certainly inadequate. After nationalization, new bank branches were opened in both rural and urban areas.
6. Banks created credit facilities mainly to the agriculture sector and its allied activities after nationalization.
   After New Economic Policy 1991, the Indian banking industry has been facing new horizons of competition, efficiency, and productivity.

Question 38.
Describe the performance of the 12th five-year plan in India.
Answer:
Economic planning is the process in which the limited natural resources are used skillfully so as to achieve the desired goals.

1. First five-year plan (1951 – 56): Main focus was on agricultural development it achieved a growth rate of 3.6%.

2. Second five-year plan (1956 – 61): Focus was on the industrial development of the country and achieved a growth rate of 4.1%.

3. Third five-year plan (1961 – 66): To make the economy independent and to reach take off.

4. Plan holiday (1966 – 69): Equal priority was given to agriculture, its allied sectors, and the industrial sectors during annual plans.

5. Fourth five-year plan (1969 – 74): Growth with stability and progressive achievement of self-reliance was the goal but the plan failed.

6. Fifth five-year plan (1975 – 79): A successful plan prioritized agriculture and then industry and mines.

7. Rolling plan: This plan was started with an annual plan for 1978-79.

8. Sixth five-year plan (1980 – 85): Based on investment yojana, its objective was poverty eradication and technological self-reliance.

9. Seventh five-year plan (1985 – 90): Establishment of the self-sufficient economy and opportunities for productive employment. Private sector got the priority over the public sector.

10. Annual plans: Two annual plans were formed in 1990 – 91 & 1991 -92.

11. Eighth five-year plan (1992 – 97): Priority was given to the development of human resources. A new economic policy was introduced.

12. Ninth five-year plan (1997 – 02):

• Aimed to double the per capita income in the next 10 years.
• Aimed to reduce the poverty ratio to 15% by 2012.

13. Tenth five-year plan (2002 – 07): Growth with justice and equity was the focus but the plan failed with a growth rate of 5.6%. Aimed to double the per capita income in the next 10 years. Aimed to reduce the poverty ratio to 15% by 2012.

14. Eleventh five-year plan (2007 – 12): The main theme was faster and more inclusive growth.

15. Twelfth five-year plan (2012 – 17): The main theme was faster more inclusive and sustainable growth. The five-year plans played a very prominent role in the economic development of the country. These plans had guided the government as to how it should utilize scarce resources so that maximum benefits can be gained.

Samacheer Kalvi 11th Economics Indian Economy Before and After Independence Additional Questions and Answers

Part – A
Choose the best options

Question 1.
Lord Cornwallis introduced “Permanent Settlement Act in” _______
(a) 1793
(b) 1794
(c) 1795
(d) 1796
Answer:
(a) 1793

Question 2.
In the year _______ green revolution started in India.
(a) 1950
(b) 1951
(c) 1948
(d) 1960
Answer:
(d) 1960

Question 3.
KGN. Daber established Mumbai’s spinning and weaving co. in _______
(a) 1810
(b) 1854
(c) 1845
(d) 1948
Answer:
(b) 1854

Question 4.
The oil well of Digboi, Assam was dug in.
(a) 1889
(b) 1898
(c) 1988
(d) 1810
Answer:
(a) 1889

Question 5.
The period of twelfth five year plan _______
(a) 2010 – 15
(b) 2011 – 16
(c) 2012 – 17
(d) 2013 – 18
Answer:
(c) 2012 – 17

Question 6.
NITI Aayog replaced the planning commission in _______
(a) 2013
(b) 2015
(c) 2014
(d) 2016
Answer:
(b) 2015

Question 7.
Human development index is _______
(a) HDI
(b) UNDP
(c) PQLI
(d) HID
Answer:
(a) HDI

Question 8.
Physical Quality of Life Index (PQLI) was developed by _______
(a) HDI
(b) PQLI
(c) UNDP
(d) HID
Answer:
(c) UNDP

Question 9.
In the _______ system, the ownership rights of use and control of land were held by the tiller himself.
(a) Zamindari
(b) Mahalwari
(c) Ryotwari
(d) Green revolution
Answer:
(c) Ryotwari

Question 10.
The period of industrial capital is _______
(a) 1757 – 1813
(b) 1813 – 1858
(c) 1757 – 1858
(d) 19th century
Answer:
(b) 1813 – 1858

Match the following and choose the answer using the codes given below

Question 1.

(a) 12 3 4
(b) 2 4 3 1
(c) 2 3 1 4
(d) 4 3 2 1
Answer:
(c) 2 3 1 4

Question 2.

(a) 12 3 4
(b) 2 1 4 3
(c) 4 3 2 1
(d) 2 3 1 4
Answer:
(b) 2 1 4 3

Choose the correct option

Question 3.
The period of merchant capital is _______
(a) 1842 – 1857
(b) 1918 – 1920
(c) 1757 – 181
(d) 1721 – 1838
Answer:
(c) 1757 – 181

Question 4.
How many types of land tenure systems were there before independence?
(a) 2
(b) 3
(c) 1
(d) 5
Answer:
(b) 3

Question 5.
The first Indian modernized cotton cloth mill was established _______
(a) Chennai
(b) Calcutta
(c) Mumbai
(d) Bengaluru
Answer:
(b) Calcutta

Fill in the blanks with the suitable option given below

Question 6.
The plan holiday was _______
(a) 1951-53
(b) 1966-69
(c) 2001 -02
(d) 1976-79
Answer:
(b) 1966-69

Question 7.
The planning commission was replaced by _______
(a) NITI Aayog
(b) Planning group
(c) Finance commission
(d) None of the above
Answer:
(a) NITI Aayog

Question 8.
NITI Aayog was formed in _______
(a) 2001
(b) 2014
(c) 2015
(d) 2016
Answer:
(c) 2015

Choose the incorrect statement

Question 9.
(a) Ryotwari system was first established in Tamilnadu.
(b) Zamindari system was established by the British East India Company
(c) Mahalwari system was also called the owner – cultivator system
(d) Zamindari system was created in 1793
Answer:
(c) Mahalwari system was also called as the owner – cultivator system

Question 10.
(a) The investment of small service enterprises should be more than ₹ 10 lakhs.
(b) The investment of microservice enterprises should not exceed ₹ 10 lakhs.
(c) The investment of medium service enterprises should be more than ₹ 2 crores,
(d) The investment of medium service enterprises should not exceed ₹ 10 crores.
Answer:
(d) The investment of medium service enterprises should not exceed ₹ 10 crores.

Choose the incorrect pair

Question 11.

Answer:
(c) Vijaya Nagar (iii) England

Question 12.

Answer:
(c) Serampur (iii) Iron and steel

Chooose the correct pair

Question 13.

Answer:
(a) Industrial policy (i) 1948

Question 14.

Answer:
(d) White revolution (iv) Milk

Analyze the reason for the following

Question 15.
Assertion (A): Before the advent of the British, the Indian economy was self-sufficient.
Reason (R): Before the advent of the British, India lived in the village.
(a) Both (A) and (R) are true
(b) (A) is true (R) is false
(c) Both (A) and (R) are false.
(d) (A) is false (R) is true.
Answer:
(a) Both (A) and (R) are true

Choose the incorrect statement

Question 16.
(a) The industrial policy resolutions in India ushered in a socialistic economy
(b) The high yielding varieties programme was called a pilot project of the green revolution
(c) The aim of the seventh five-year plan is ‘Garibi Hatao’
(d) Finance commission replaced the planning commission.
Answer:
(b) The high yielding varieties programme was called a pilot project of the green revolution

Question 17.
(a) Switzerland ranks first in HDI.
(b) PQLI includes income whereas HDI excludes income
(c) The process of transforming private assets to government ownership is called privatization
(d) The third plan was called as ‘Gadgil plan’.
Answer:
(d) The third plan was called as ‘Gadgil plan’.

Pick the odd one out

Question 18.
(a) The period of revenue capital
(b) The period of industrial capital
(c) The period of merchant capital
(d) The period of financial capital
Answer:
(c) The period of merchant capital

Question 19.
(a) Investment system
(b) Zamindari system
(c) Mahalwari system
(d) Ryotwari system
Answer:
(a) Investment system

Question 20.
(a) Black revolution
(b) Red revolution
(c) White revolution
(d) Violet revolution
Answer:
(d) Violet revolution

Part – B
Answer the following questions in one or two sentences

Question 1.
Name the classification of industries in India?
Answer:

1. Public sector
2. Public-cum-private sector
3. Controlled private sector
4. Private and co-operative sectors.

Question 2.
What is the resolution of industrial policy 1948?
Answer:
The first industrial policy was declared on 6th April 1948. Its main importance was introducing the system of mixed economy in India.

Question 3.
What is the resolution of industrial policy 1956?
Answer:
The policy was shaped by the Mahalanobis model of growth with an emphasis on heavy industries which would lead to a higher growth path.

Question 4.
Write a note on micro-manufacturing enterprises.
Answer:
In micro-enterprises, the investment in plant and machinery does not exceed Rs. 25 lakhs.

Question 5.
Write a note on small manufacturing enterprises
Answer:
The investment in plant and machinery is more than twenty-five lakh rupees but does not exceed Rs. 5 crores.

Question 6.
Write a note on medium manufacturing enterprises.
Answer:
The investment in plant and machinery is more than Rs. 5 crores but not exceeding Rs. 10 crores.

Question 7.
Name the classification of public sector banks.
Answer:

1. Nationalized Banks.
2. State Bank and its associates

Part – C
Answer the following questions in One Paragraph

Question 1.
Describe the problems of British rule in the Indian economy?
Answer:

1. The British rule stunted the growth of Indian enterprise. It retarded the capital formation in India.
2. The drain of wealth financed capital development in Britain.
3. Indian agricultural sector became stagnant and deteriorated.
4. Indian handicraft industries were collapsed.
5. The system of capitalist firms with profit motives led to the drain of resources from India.

Question 2.
Mention the achievements of the green revolution.
Answer:

1. The production of major cereals wheat and rice were boosted. India became a food surplus exporting food grains to European countries.
2. It was confined to high yielding variety cereals.
3. Production of commercial crops was increased.
4. Per hectare productivity of all crops had increased due to better seeds.
5. The revolution had a positive effect on the development of industries manufacturing agricultural tools.
6. It brought prosperity to rural people.
7. Demand for labor increased.
8. Financial resources were provided by banks and co-operative societies.

Question 3.
Examine the requirements of the second green revolution.
Answer:

1. Introduction of genetically modified (GM) seeds which double the per average production.
2. Contribution of the private sector to market the usage of GM foods.
3. The government can play a key role in expediting irrigation schemes and managing water resources.
4. Linking of rivers to transfer surplus water to deficient areas.

Question 4.
Write a note on the iron and steel industry.
Answer:

1. First steel industry at Kulti, near Jharia, West Bengal – Bengal ironworks company in 1870.
2. First large-scale steel plant TISCO at Jamshedpur in 1907.
3. Steel Authority of India Ltd. (SAIL) was established in 1974 and was made responsible for the development of the steel industry.
4. India is the eighth-largest steel producing country in the world.

Question 5.
Write a note on petrol and natural gas.
Answer:

1. The first successful oil well was dug in India in 1889 at Digboi, Assam.
2. At present, a number of regions with oil reserves have been identified and oil is being extracted in these regions.
3. For exploration purposes, the Oil and Natural Gas Commission (ONGC) was established in 1956 at Dehradun, Uttarakhand.

Students can Download Accountancy Chapter 1 Accounts from Incomplete Records Questions and Answers, Notes Pdf, Samacheer Kalvi 12th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.

Tamilnadu Samacheer Kalvi 12th Accountancy Solutions Chapter 1 Accounts from Incomplete Records

Samacheer Kalvi 12th Accountancy Accounts from Incomplete Records Text Book Back Questions and Answers

I. Choose the Correct Answer

Question 1.
Incomplete records are generally maintained by …………….
(a) A company
(b) Government
(c) Small sized sole trader business
(d) Multinational enterprises
Answer:
(c) Small sized sole trader business

Question 2.
Statement of affairs is a …………….
(a) Statement of income and expenditure
(b) Statement of assets and liabilities
(c) Summary of cash transactions
(d) Summary of credit transactions
Answer:
(b) Statement of assets and liabilities

Question 3.
Opening statement of affairs is usually prepared to find out the …………….
(a) Capital in the beginning of the year
(b) Capital at the end of the year
(c) Profit made during the year
(d) Loss occurred during the year
Answer:
(a) Capital in the beginning of the year

Question 4.
The excess of assets over liabilities is …………….
(a) Loss
(b) Cash
(c) Capital
(d) Profit
Answer:
(c) Capital

Question 5.
Which of the following items relating to bills payable is transferred to total creditors account?
(a) Opening balance of bills payable
(b) Closing balance of bills payable
(c) Bills payable accepted during the year
(d) Cash paid for bills payable
Answer:
(c) Bills payable accepted during the year

Question 6.
The amount of credit sales can be computed from …………….
(a) Total debtors account
(b) Total creditors account
(c) Bills receivable account
(d) Bills payable account
Answer:
(a) Total debtors account

Question 7.
Which one of the following statements is not true in relation to incomplete records?
(a) It is an unscientific method of recording transactions
(b) Records are maintained only for cash and personal accounts
(c) It is suitable for all types of organisations
(d) Tax authorities do not accept
Answer:
(c) It is suitable for all types of organisations

Question 8.
What is the amount of capital of the proprietor, if his assets are ₹ 85,000 and liabilities are ₹ 21,000?
(a) ₹ 85,000
(b) ₹ 1,06,000
(c) ₹ 21,000
(d) ₹ 64,000
Answer:
(d) ₹ 64,000

Question 9.
When capital in the beginning is ₹ 10,000, drawings during the year is ₹ 6,000, profit made during the year is ₹ 2,000 and the additional capital introduced is ₹ 3,000, find out the amount of capital at the end …………….
(a) ₹ 9,000
(b) ₹ 11,000
(c) ₹ 21,000
(d) ₹ 3,000
Answer:
(a) ₹ 9,000

Question 10.
Opening balance of debtors: ₹ 30,000, cash received: ₹ 1,00,000, credit sales: ₹ 90,000; closing balance of debtors is …………….
(a) ₹ 30,000
(b) ₹ 1,30,000
(c) ₹ 40,000
(d) ₹ 20,000
Answer:
(d) ₹ 20,000

II. Very Short Answer Questions

Question 1.
What is meant by incomplete records?
Answer:
When accounting records are not strictly maintained according to double entry systems, these records are called incomplete accounting records.

Question 2.
State the accounts generally maintained by the small-sized sole trader when a double-entry accounting system is not followed.
Answer:
Generally, cash account and the personal accounts of customers and creditors are maintained by small-sized sole trader. When the double-entry accounting system is not followed.

Question 3.
What is a statement of affairs?
Answer:
A statement of affairs is a statement showing the balances of assets and liabilities on a particular date. It is prepared when accounts are maintained under a single entry system to find out the capital of the business.

III. Short Answer Questions

Question 1.
What are the features of incomplete records?
Answer:
Following are the features of incomplete records:

• Nature: It is an unscientific and unsystematic way of recording transactions. Accounting principles and accounting standards are not followed properly.
• Type of accounts maintained: In general, only cash and personal accounts are maintained fully. Real accounts and nominal accounts are not maintained properly. Some transactions are completely omitted.
• Lack of uniformity: There is no uniformity in recording the transactions among different organizations. Different organizations record their transactions according to their needs and conveniences.

Question 2.
What are the limitations of incomplete records?
Answer:
Limitations of Incomplete records:
1. Lack of proper maintenance of records – It is an unscientific and unsystematic way of maintaining records. Real and nominal accounts are not maintained properly.

2. Difficulty in preparing trial balance – As accounts are not maintained for all items, the accounting records are incomplete. Hence, it is difficult to prepare trail balance to check the arithmetical accuracy of accounts.

3. Difficulty in ascertaining true profitability of the business – Profit is found out based on available information and estimates. Hence, it is difficult to prepare ascertain true profit as the trading and profit and loss account cannot be prepared with accuracy.

4. Difficulty in ascertaining financial position – In general, only the estimated values of assets and liabilities are available from incomplete records. Hence, it is difficult to ascertain true and fair view of state of affairs or financial position as on a particular date

5. Errors and frauds cannot be detected easily – As only partial records are available, it may not be possible to have internal checks in maintaining accounts to detect errors and frauds.

6. Unacceptable to government and other activities – As accounts maintained are incomplete, these may not comply with the legal requirements. Hence, government, tax authorities, and other legal authorities do not accept accounts prepared from incomplete records.

Question 3.
State the differences between double-entry system and incomplete records.
Answer:

Question 4.
State the procedure for calculating profit or loss through the statement of affairs.
Answer:
Under this method, by comparing the capital (net worth) at the beginning and at the end of a specified period profit or loss is found out. Any increase in capital (net worth) is taken as profit while a decrease in capital is regarded as a loss.

Capital at the beginning and at the end can be found out by preparing the statement of affairs at the beginning and at the end of an accounting year respectively.

The difference between the closing capital and the opening capital is taken as profit or loss of the business. Due adjustments are to be made for any withdrawal of capital from the business and for the additional capital introduced in the business.

Closing Capital + Drawings – Additional Capital – Opening Capital = Profit / Loss

Question 5.
Differentiate between the statement of affairs and the balance sheet.
Answer:

Question 6.
How is the amount of credit sale ascertained from incomplete records?
Answer:
Ascertainment of Credit Sales:-

IV. Exercises:

Question 1.
From the following particulars ascertain profit or loss:

Answer:
Statement of profit or Loss

Question 2.
From the following particulars ascertain profit or loss:

Answer:
Statement of Profit or Loss

Question 3.
From the following details, calculate the missing figure:

Answer:
Statement of Profit or Loss

Question 4.
From the following details, calculate the capital as of 31^st December 2018.

Answer:
Statement of Profit or Loss

Question 5.
From the following details, calculate the missing figure:

Answer:
Statement of Profit or Loss

Question 6.
Following are the balances in the books of Thomas as of 31^st March 2019.

Prepare a statement of affairs as of 31st March 2019 and calculate capital as of that date.
Answer:
Statement of Profit or Loss

Question 7.
On 1^st April 2018 Subha started her business with a capital of ₹ 1,20,000. She did not maintain a proper book of accounts. Following particulars are available from her books as of 31.3.2019.

During the year she withdrew ₹ 30,000 for her personal use. Did she introduce further capital of Rs. 40,000 during the year. Calculate her profit or loss.
Answer:
Statement of Affairs

Statement of Profit or Loss

Question 8.
Raju does not keep proper books of accounts. The following details are taken from his records.

During the year he introduced further capital of ₹ 50,000 and withdrew ₹ 2,500 per month from the business for his personal use. Prepare a statement of profit or loss with the above information.
Answer:
Statement of Affairs

Statement of Profit or Loss

Question 9.
Ananth does not keep his books under the double-entry system. Find the profit or loss made by him for the year ending 31^st March 2019.

Ananth had withdrawn ₹ 60,000 for his personal use. He had introduced ₹ 17,000 as capita for the expansion of his business. Create a provision of 5% on debtors. Plant and machinery are to be depreciated at 10%.
Answer:
Statement of Affairs

Statement of Profit or Loss

Question 10.
Find out credit sales from the following information:

Answer:
Total / Sundry debtors Account

Question 11.
From the following details find out total sales made during the year.

Total / Sundry debtors Account

Total Sales = Cash Sales + Credit Sales
= 4, 60, 000 + 5, 40, 000
= 10, 00, 000

Question 12.
From the following particulars, prepare bills receivable account and compute the bills received from the debtors.

Answer:
Total/Bills Receivable Account

Question 13.
From the following particulars, calculate total sales.

Answer:
Bills Receivable Account

Debtors A/c

Total Sales = Cash Sales + Credit Sales
= 9, 85, 000 + 3, 15, 000
= ₹ 10, 00, 000

Question 14.
From the following details, calculate credit purchases.

Answer:
Total/ Sundry Creditors Account

Question 15.
From the following particulars calculate total purchases.

Answer:
Bills Payable Account

Total Creditors Account

Total purchases = Cash purchases + Credit purchases
Total purchases = 1, 55, 000 + 2, 25, 000
= Rs. 3, 80, 000

Question 16.
From the following details, you are required to calculate credit sales and credit purchases by preparing total debtors account, total creditors account, bills receivable account, and bills payable account.

Answer:
Bills Receivable A/c

Total debtors A/c

Bills Payable A/c

Total Creditors A/c

Question 17.
From the following details of Abdul who maintains incomplete records, prepare Trading and Profit and Loss account for the year ended 31^st March 2018 and a Balance Sheet as on the date.

Other details:

Answer:
Total Debtors Account

Total Creditors Account

Trading Account for year ended 31^st March 2019

Profit/Loss Account for the year ended 31^st March 2019

Balance Sheet as on 31^st March 2019

Question 18.
Bharathi does not maintain her books of accounts under the double-entry system. From the following details prepare a trading and profit and loss accounts for the year ending 31st March 2019 and a balance sheet as of that date.

Cash Book

Other information:

Answer:
Total Debtors Account

Trading Account for that year ended 31^st March 2019

Profit/Loss Account for the year ended 31^st March 2019

Balance Sheet as of 31^st March 2019

Question 19.
Arjun carries on grocery business and does not keep his books on a double entry basis. The following particulars have been extracted from his books:

Other information for the year ending 31 – 3 – 2019 showed the following:

Total sales during the year were ₹ 7, 70,000. Purchases returns during the year were ₹ 30, 000 and sales returns were ₹ 25, 000. Depreciate plant and machinery by 5%. Provide ₹ 1, 500 for doubtful debts. Prepare trading and profit and loss account for the year ending 31^st March 2019 and a balance sheet as on the date.
Answer:
Statement of Affairs

Total Credit Account

Trading Account for the year ended 31^st December 2019

Profit/Loss Account for the year ended 31^st December 2019

Balance Sheet as of 31^st December 2019

Question 20.
Selvam does not keep his books under the double-entry system. From the following information prepare trading and profit and loss account A/c and balance sheet as of 31 – 12 – 2018.

Adjustments:
Write off the depreciation of 5% on furniture. Create a reserve of 1% on debtors for doubtful debts.
Answer:
Statement of affairs as of 1^st January 2018
Answer:
Statement of Affairs as of ^st January 2018

Trading Account for year ended 31^st December 2018

Profit/Loss Account for the year ended 31^st December 2018

Balance Sheet as on 31^st December 2018

Samacheer Kalvi 12th Accountancy Solutions Accounts from Incomplete Records Additional Questions and Answers

I. Choose the correct answer

Question 1.
The single entry system is …………….
(a) a scientific method
(b) an incomplete double entry system
(c) None of these
Answer:
(b) an incomplete double entry system

Question 2.
The single entry system will not be accepted by …………….
(a) Proprietor
(b) Partners
(c) Tax authorities
Answer:
(c) Tax authorities

Question 3.
Single entry system capital is calculated.
(a) Capital = Assets – Liabilities
(b) Assets = Capital – Liabilities
(c) Capital = Assets + Liabilities
(d) Assets = Liabilities – Capital
Answer:
(a) Capital = Assets – Liabilities

Question 4.
Credit Purchase is obtained from …………….
(a) Total Debtors Accounts
(b) Total Creditors Account
(c) Statement of Affairs
Answer:
(b) Total Creditors Account

Question 5.
Statement of Affairs is like a …………….
(a) Trading Account
(b) Profit and Loss Account
(c) Balance Sheet
Answer:
(c) Balance Sheet

II. Fill in the blanks

Question 6.
Statement of affairs method is also called ……………. method.
Answer:
Networth Method.

Question 7.
A statement of affairs resembles a …………….
Answer:
Balance Sheet.

Question 8.
Single entry system maintains ……………. and ……………. accounts.
Answer:
Cash, Personal.

Question 9.
A firm has assets worth ₹ 10,00,000 and Capital ₹ 2,25,000 then its liabilities is …………….
Answer:
₹ 7,75,000.

Question 10.
The difference between capital while beginning and capital at the end indicate……………. of the business.
Answer:
Profit/Loss.

Question 11.
The excess of assets over liabilities is …………….
Answer:
Capital.

III. Match the following

Question 12.

Answer:
(i) 3

Question 13.

Answer:
(ii) 3

IV. Assertion & Reason

Question 14.
(A) Assertion: Bill receivable endorsed are debited to Creditors Account
(B) Reason: Bills receivable is received from Debtors is credited to Debtors A/c
(a) Both (A) and (B) are correct
(b) (A) is correct and (B) is incorrect
(c) Both are correct
(d) (A) is incorrect but (B) is correct
Answer:
(a) Both (A) and (B) is correct

V. True or False

Question 15.
Limited Companies are free to choose either a single entry (or) Double entry system.
Answer:
False.

Question 16.
Under network, method profit is ascertained by calculating the increase in the network after adjusting for drawing and addition to capital.
Answer:
True.

Question 17.
Net Profit is calculated to capital at the end + Drawing + Capital introduced – Capital in the beginning.
Answer:
False.

Question 18.
In this system personal accounts and cash accounts transaction is recorded.
Answer:
True.

VI. Very Short Answer Question

Question 1.
Define of Single Entry System.
Answer:
According to Kohler, “Single Entry System is a system of Book-keeping in which as a rule, only records of cash and personal accounts are maintained. It is always an incomplete double entry system varying with circumstances.

VII. Exercise

Question 1.
Calculate the profit for the following information.

Answer:

Question 2.
Calculate opening capital

Answer:

Question 3.
Calculate the missing figure.

Answer:

Question 4.
Joseph maintains books in a single entry. The following details are given from his books.

He has taken ₹ 40,000 from the business for his personal exp depreciate furniture by 10%. Prepare a statement showing profit or loss for the year 2001.
Answer:
Statement of Affairs on 1.1.2010 to 31.12.2010

Statement Profit

Question 5.
From the following details find out the credit purchases and total purchase.

Answer:
Bills Payable Account

Total Creditors Account

Credit Purchase ₹ 30,800
Total Purchases = Cr Purchases + Cash Purchases
= 30, 800 + 29, 000
= ₹ 59, 800

Question 6.
From the following information, you are required to calculate total sales.

Answer:
Bills Receivable Account

Total Debtors Account

Total Sales = Cash Sales + Credit Sales
= 40, 900 + 95, 300
= ₹ 1,36,200

Question 7.
From the following particulars prepare the final accounts of Mrs. Meenakshi for the year ended 31.3.2004

Answer:
Total Debtors Account

Sundry Creditors Account

Question 8.
How to prepare the final accounts from incomplete records?
Answer:
When books of accounts are incomplete, information regarding revenues, expenses, assets and liabilities is not known fully. Hence it becomes difficult to prepare trading and profit and loss account and balance sheet.

Steps to be followed to prepare final accounts:

1. The opening statement of affairs is to be prepared to ascertain the opening capital.
2. Missing figures must be found out with the available date. This can be done by preparing memorandum accounts or by making necessary adjustments to the existing figure.
   • It may become necessary to prepare a cash book to find out missing items such as cash purchase and sales.
   • By preparing total debtors and total creditors A/c credit sales and credit purchases can be ascertained.
   • Bills Receivable, Bills Payable A/cs are to be prepared to find out the balance of Bills Receivable. Bills Payable accepted.
3. The final step is to prepare a trading and profit and loss A/c and balance sheet.

Question 9.
Kumaran, a trader does not keep proper books of account. However, he furnishes you the following particulars.

During the year Kumaran introduced Rs. 6,000 as further capital and withdrew Rs. 4,000 as drawings. Write off Depreciation on furniture at 10% and on office equipment at 5% Prepare a statement showing the profit or loss made by him for the year ended 31st March 2013.
Answer:
Statement of Affairs as of 31^st March 2012

Statement of Affairs as of 31^st March 2013

Statement of Profit/Loss for the year ended 31^st March 2013