Plus Two

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf March 2021 helps in understanding answer patterns.

Kerala Plus Two Business Studies Previous Year Question Paper March 2021

Time: 21/2 Hours
Total Score: 80 Marks

Answer the following questions from 1 to 45 upto a total score of 80.

Questions from 1 to 9 carry 1 score each. (9 × 1 = 9)

Question 1.
Network of social relationship among employees denote:
a) Formal organisation
b) Informal organisation
c) Formal communication
d) None
Answer:
b) Informal organisation

Question 2.
_________ refers to the number of subordinates under a supervisor’s direct control.
a) Scalar Chain
b) Span of Management
c) Gang Plank
d) All of these
Answer:
a) Span of Management/ Span of Control

Question 3.
Management is ___________ .
a) Goal oriented
b) Pervasive
c) Multidimensional
d) All of these
Answer:
d) All of these

Question 4.
Find the odd one out.
a) Speed boss
b) Gang boss
c) Manager
d) Inspector
Answer:
c) Manager

Question 5.
Measuring the ability of a person to perform a given task is ___________ .
a) Personality test
b) Trade test
c) Aptitude test
d) Interest test
Answer:
b) Trade test or c) Aptitude test

Question 6.
The process of making subordinates to act in a desired manner is _____________ .
a) Motivation
b) Supervision
c) Communication
d) None
Answer:
a) Motivation

Question 7.
___________ communication flows upwards or downwards.
a) Vertical
b) Horizontal
c) Diagonal
d) None
Answer:
a) Vertical

Question 8.
Which of the following is an example of convenience goods?
a) Newspaper
b) Jewellery
c) Television
d) All of these
Answer:
a) Newspaper

Question 9.
Write any two rights of consumers.
Answer:
(a) Right to safety
(b) Right to choose

Questions from 10 to 17 carry 2 scores each. (8 × 2 = 16)

Question 10.
What is Fatigue Study?
Answer:
Fatigue study determines the amount and frequency of rest intervals required in completing the work under standard working conditions.

Question 11.
Write two differences between capital market and money market.
Answer:

Capital Market	Money Market
1) Market deals only long term fund.	1) Market deals only shortterm fund.
2) It arranges large amount of fund.	2) it arranges small amount of fund.
3) Return is high.	3) Return is low.
4) SEBI is the market regulator.	4) RBI is the market regulator.

Question 12.
Complete the table as per hint given.

Interest rates, Inflation rates etc.	Economic environment
Customs, traditions etc.	?
Innovation in the method of production	?

Answer:
b) Customs, Traditions, etc. – Social environment
c) Innovation in the method of production – Technological environment

Question 13.
Arrange the process of organising properly.
1) Assignment of duties
2) Departmentalisation
3) Identification and division of labour
4) Establishing reporting relationships
Answer:
(3) → (2) → (1) → (4)

Question 14.
Write two organizational barries to communication.
Answer:
a) Organisational policy : If the organisational policy is complex, it restricts the free flow of communication.
b) Rules and regulations : Rigid Rules and regulations may be a hurdle to communication.

Question 15.
What is meant by performance appraisal?
Answer:
Performance appraisal means evaluating an employee’s current or past performance as against certain predetermined standards.

Question 16.
Write a short note on Management by exception.
Answer:
Control by Exception/ Management by Exception (MBE)
It is a management technique by which managers concentrate only on exceptional deviations instead of trying to correct each and every deviation. It allows the manager to devote more time for important issues by permitting the subordinates deal with the issue of a routine nature. This allows the subordinates to take decisions on certain matters without any interference by the top executives.

Question 17.
Which capital is mentioned in the following statements?

Investment in long-term securities	?
Investment in short-term securities	?

Answer:
(a) Fixed Capital
(b) Working Capital

Questions from 18 to 23 carry 3 scores each. (6 × 3 = 18)

Question 18.
Write any 3 differences between marketing and selling.
Answer:

Marketing	Selling
It is concerned with product planning and development.	It is concerned with sale of goods already produced.
It focuses on maximum satisfaction of the customer.	It focuses on the maximum satisfaction of the sellers through the exchange of products.
It aims at profits through consumer satisfaction.	It aims at maximum profit through maximisation of sales.

Question 19.
What are the three-tier redressal under Consumer Protection Act?
Answer:
a) District Forum
b) State Commission
c) National Commission

Question 20.
State the features of Leadership (any three).
Answer:
Features of Leadership

1. Leadership indicates ability of an individual to influence others.
2. Leadership tries to bring change in the behaviour of others.
3. Leadership indicates interpersonal relations between leaders and followers.

Question 21.
Describe importance of Planning.
Answer:
Importance of Planning

1. Planning provides directions: By stating in advance how work is to be done planning provides direction for all actions.
2. Planning reduces the risk of uncertainty: Planning enables anorganisation to predict future events and prepare to face the unexpected events.
3. Planning reduces wasteful activities: Planning serves as the basis of co-ordinating the activities
   and efforts of different departments and individuals. It helps to eliminate useless and redundant activities.

Question 22.
“Co-ordination is the essence of Management.”
a) Do you agree with this?
b) Write two features of co-ordination.
Answer:
(a) Yes. I agree with the statement.

(b) Characteristics of Co-ordination

1. Co-ordination integrates group efforts of different departments
2. Co-ordination ensures unity of action
3. Co-ordination is a continuous process

Question 23.

A	B
Top Level Management	Responsible for implementation of plans and strategies
Middle Level Management	Interact with actual workforce.
Lower Level Management	Responsible for the growth and survival of the organization

Answer:
a) Top level Management – Responsible for the growth and survival of the organisation.
b) Midde level Management – Responsible for implementation of plans and strategies.
c) Lower level Management – Interact with actual workforce

Questions from 24 to 31 carry 4 scores each. (8 × 4 = 32)

Question 24.
“Management is the process of dealing with things,, or people.” Validate the statement by highlighting its importance.
Answer:
Need and Importance of Management

1. Achieving Group Goals: Efficient management co-ordinates all the activities for the achievement of organisational goals.
2. Increases Efficiency: Management helps to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
3. Creates Dynamic Organisation: A good management enables the business to adapt and adjust according to the changes in the business environment.
4. Achieving Personal Objectives: Through motivation and leadership, the management helps individuals to develop team spirit, co-operation and commitment to group success.

Question 25.
Write short notes on the following types of plans:
1) Policy
2) Procedures
3) Programme
4) Rules
Answer:
a) Policy: Policy is a broad statement formulated to provide guidelines in decision making.

b) Procedure: Procedure is a chronological sequence or steps to be undertaken to enforce a policy.

c) Programme: Programme includes all the activities necessary for achieving a given objective. Programmes are the combination of goals, policies, procedures and rules.

d) Rule: Rules are prescribed guidelines for conducting an action.

Question 26.
Distinguish between Formal Organization and Informal Organization.
Answer:

Formal organisation	Informal organisation
1) It is deliberately created by top level management.	1) It arises automatically as a result of social interaction among the employees.
2) It has pre-determined purpose.	2) It has no pre-determined purpose.
3) It is highly rigid.	3) It is more flexible.
4) Communication is allowed through the scalar chain.	4) Communication is allowed through all channel networks.

Question 27.
State the importance of business environment.
Answer:
Importance of Business Environment

1. Identification of opportunities: Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.
2. Identification of threats: Environmental awareness help managers to identify various threats on time and serves as an early warning signal.
3. Tapping useful resources: Business environment helps to know the availability of resources and making them available on time.
4. Coping with rapid changes : Environmental scanning enables the firms to adapt themselves to the changes in the market.

Question 28.
“Staffing fills the job positions in the organization.”
a) Is this statement correct?
b) Write any 3 importance of staffing.
Answer:
a) Yes. This statement is correct.

b)

1. Helps in discovering and obtaining competent personnel for various jobs.
2. Makes for higher performance, by putting right person on the right job.
3. Ensures continuous survival and growth of the enterprise.
4. Helps to ensure optimum utilization of the human resources.

Question 29.
List out the principles of directing. (any 4)
Answer:
Principles of Directing

1. Maximum Individual Contribution: This principle emphasises that directing techniques must help every individual in the organization to contribute to his maximum potential for achievement of organisational objectives.
2. Harmony of Objectives: The objectives of individual and organization must be in harmony with each other.
3. Unity of Command: This principle insists that, a person in the organisation should receive instructions from one superior only.
4. Appropriateness of Direction Technique: According to this principle, appropriate motivational and leadership techniques should be used while directing the people.

Question 30.
Capital structure refers to the combination between owners fund and borrowed fund.
a) Do you agree?
b) Write any factors affecting the choice of capital structure.
Answer:
a) Yes. I agree with this statement.

b) Factors Affecting Capital Structure

1. Trading on Equity (Financial Leverage): It refers to the use of fixed income securities such as debentures and preference capital in the capital structure so as to increase the return of equity shareholders.
2. Stability of Earnings: If the company is earning regular and reasonable income, the management can rely on preference shares or debentures. Otherwise issue of equity shares is recommended.
3. Cost of Debt: A firm’s ability to borrow at lower rate, increases its capacity to employ higher debt.
4. Flexibility: Capital structure should be capable

Question 31.
Write the names of various money market instruments.
Answer:
a) Treasury Bill
b) Commercial paper
c) Call money
d) Certificate of Deposit

Question 32.
Explain the following :
1) Economic environment.
2) Legal environment.
Answer:
a) Economic Environment: Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect the business enterprise.

b) Legal Environment: Legal environment includes various legislations passed by the central, state or local Government.

Question 33.
What are the features of Planning?
Answer:
Features of Planning

1. Planning is goal oriented
2. It is the primary function of management
3. It is required at all levels of management
4. Planning is a continuous process
5. Planning is futuristic (forward looking)

Question 34.
Arrange the following elements of communication in the right order:
1) Message
2) Decoding
3) Sender
4) Encoding
5) Media.
6) Feedback
7) Receiver
Answer:
Sender → Message → encoding → media decoding → Receiver → feed back

Question 35.
Substantiate the relationship between Planning and Controlling.
Answer:
Relationship between Planning and Controlling

1. Planning and control are interdependent and inseparable functions of management.
2. Planning is a prerequisite for controlling.
3. Planning initiates the process of management and controlling complete the process.
4. Planning is prescriptive where as controlling is evaluative.
5. Planning and controlling are both backward looking as well as forward looking functions.

Question 36.
Transfers, Campus recruitment, Direct recruitment, and promotions are some of the sources of recruitment.
a) Classify them into internal sources and external sources.
b) Write 3 merits of internal sources of recruitment.
Answer:
a) Internal sources – Transfer, Promotion

b) External sources – Campus recruitment, Direct recruitment

c) Merits of Internal Sources

1. It motivate the employees for better performance.
2. The existing employees get an opportunity for promotion.
3. It establishes better employer – employee relationship.

Question 37.
Briefly explain the various levels of Management.
Answer:
a) Levels of Management: There are three levels in the hierarchy of an organisation.
They are:

1. Top-Level Management
2. Middle-Level Management
3. Lower-Level Management

b)

1. Top Level Management: It consists of Chairman, Chief Executive Officer, Board of Directors, Managing Director, etc.
2. Middle Level Management: All the functional department heads and branch managers come under the category of middle level managers. E.g. Production manager, Sales manager, Finance manager, etc.
3. Lower / Supervisory / Operational Level Management: This level includes foremen, supervisors, finance and accounts officers, sales officers, etc. This level of managers have direct contact with employees.

Question 38.
Explain any two principles of Scientific Management,
Answer:
Principles of Scientific Management

• Science and not the rule of thumb: The first principle of scientific management requires scientific study and analysis of each element of job in order to replace old rule of thumb approach.
• Harmony, not discord: As per this principle, there should be complete harmony between the management and workers. Taylor called for cornplete mental revolution on the part of both management and workers. Both the parties should realize each other’s importance and work towards the profits of the firm.

Question 39.
What are the elements of delegation of authority? Explain briefly.
Answer:

• Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. Authority flows from top to bottom. Authority determines the superior subordinate relationship in an organisation.
• Responsibility: Responsibility is the obligation of a subordinate to properly perform the assigned duty. Responsibility flows upwards, i.e., a subordinate will always be responsible to his superior.
• Accountability: Accountability implies being answerable for the final outcome, i.e., subordinate will be accountable to a superior for satisfactory performance of work.

Question 40.
Write the important measures taken as a part of Liberalisation.
Answer:
Liberalisation : Liberalisation of economy means to free it from direct control imported by the government. Liberalisation of the Indian industry has taken place with respect to the following.

1. Abolishing licensing requirement in most of the industries.
2. Freedom in deciding the scale of business activities
3. Removal of restrictions on the movement of goods and services.
4. Freedom in fixing the prices of goods and services.

Questions from 41 to 45 carry 8 scores each. (5 × 8 = 40)

Question 41.
Explain any 4 principles of General Management.
Answer:

• Division of Work: This principle states that a complex work should be divided into small tasks, and each task should be assigned to a particular employee. Division of work leads to specialization.
• Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the manner directed by authority. There should be a balance between authority and responsibility.
• Unity of Command: The principle of unity of command states that each employee should receive orders from one superior only. It helps to avoid confusion and conflict in the empldyees.
• Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.

Question 42.
Describe the various steps in the process of planning.
Answer:
Planning Process (Steps in Planning)

• Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
• Developing premise’s: Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
• Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
• Evaluating alternative Courses: The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
• Selecting an alternative: After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
• Implement the plan: Implementation of plan means putting plans into action so as to achieve the objectives of the business.
• Follow up action: Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.

Question 43.
Explain the various on the job training methods in workplace?
Answer:
On the Job Method: Under this method the employee is given training when he is on the job. It means learning while doing. The important On the Job Methods are:
a) Apprenticeship Programme: Under apprenticeship training, a trainee is put under the supervision of a master worker.

b) Coaching: In this method, the superior guides and instructs the trainee as a coach.

c) Internship Training: It is a joint programme of training in which vocational and professional institutes enter into an agreement with business enterprises for providing practical knowledge to its students.

d) Job Rotation: Here the trainee is transferred from one job to another job or from one department to another department so that he can learn the working of various sections.

Question 44.
Complete the need hierarchy of Abraham Maslow and explain them briefly.

Answer:
Maslow’s Need Hierarchy Theory of Motivation
Abraham Maslow’s Need Hierarchy Theory is considered fundamental to understanding of
motivation. His theory was based on human needs.

Various human needs are:

1. Physiological Needs: These are the basic needs which include food, clothes, hunger, thirst, shelter, sleep and sex. If physiological needs are not satisfied, the higher level needs will not be emerged.
2. Safety/Security Needs: These needs provide security and protection from physical and emotional harm. These needs include job security, stability of income, pension plans, etc.
3. Social Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. Informal organisation helps to satisfy the social needs of an individual.
4. Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention.
5. Self Actualisation Needs: It is the highest level of need in the hierarchy. Self actualisation is the need to maximise one’s potential, whatever it may be. These needs include growth, self-fulfilment and achievement of goals.

Question 45.
Marketing mix is a combination of 4 P’s.
a) What are the 4 P’s?
b) Explain any two of them.
Answer:
a) Price, Place, Product and Promotion

b)

• Price: Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered ‘ before fixing the price of a product.
• Place: Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf March 2022 helps in understanding answer patterns.

Kerala Plus Two Business Studies Previous Year Question Paper March 2022

Time: 21/2 Hours
Total Score: 80 Marks

Part – I

A. Answer any 4 questions from 1 to 6. Each carries 1 Score. (4 × 1 = 4)

Question 1.
Find the odd one out.
(a) Marketing Manager
(b) Managing Director
(c) Production Manager
(d) Purchase Manager
Answer:
(b) Managing Director

Question 2.
Change in lifestyle relates to ………………. environment of business.
(a) Social environment
(b) Technological environment
(c) Political environment
(d) Economic environment
Answer:
(a) Social environment

Question 3.
In the new economic policy 1991, LPG stands for ……………….
Answer:
Liberalisation, Privatisation, Globalisation

Question 4.
The assumptions on the future upon which plans are based are called …………………….
(a) Planning Procedures
(b) Planning Premises
(c) Alternate plans
(d) None of these
Answer:
(b) Planning Premises

Question 5.
Name the training methods that are applied to the work place, while employee is actually doing the work.
Answer:
On the job training

Question 6.
Write the term that denotes the mix between owners fund and borrowed fund.
Answer:
Capital Structure

B. Answer all questions from 7 to 10. Each carries 1 score. (4 × 1 = 4)

Question 7.
Doing and completing tasks with minimum cost is denoted by the term …………………..
a) efficiency
b) effectiveness
c) co-ordination
d) None of these
Answer:
a) efficiency

Question 8.
Deciding in advance what to do and how to do is ………………….
a) Directing
b) Organising
c) Staffing
d) Planning
Answer:
d) Planning

Question 9.
Learning opportunities designed to help the overall growth of employees is called ………………………
a) Development
b) Education
c) Training
d) None of these
Answer:
a) Development

Question 10.
Which among the following is the nature of principles of management?
a) Universal applicability
b) General guidelines
c) Cause and effect relationship
d) All of these
Answer:
d) All of these

Part – II

A. Answer any 3 questions from 11 to 15. Each carries 2 scores. (3 × 2 = 6)

Question 11.
Profit is one of the organizational objectives of management. Write other two organizational objectives of  management.
Answer:
a) Survival: Management must strive to ensure the survival of the organisation,
b) Growth: management must exploit fully the growth potential of the organisation.

Question 12.
What do you mean by organisational structure?
Answer:
Organisational Structure: The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.

Question 13.
Write any two difference between money market and capital market.
Answer:

Capital Market	Money Market
1) Market deals only long term fund.	1) Market deals only short term fund.
2) It arranges large amount of fund.	2) It arranges small amount of fund.

Question 14.
Briefly explain any twd rights enjoyed byaconsumer as per Consumer Protection Act, 1986.
Answer:

1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health.
2. Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.

Question 15.
Write any two functions performed by stock exchange.
Answer:
Functions of a Stock Exchange

1. Providing Liquidity and Marketability to Existing Securities: Stock Exchange provides a ready and continuous market for the sale and purchase of securities.
2. Pricing of Securities: A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. It is based on the forces of demand and supply.

B. Answer any 2 questions from 16 to 18. Each carries 2 scores. (2 × 2 = 4)

Question 16.
The Indian Corporate Sector faced with several challenges due to the government policy of Describe any two such challenges.
Answer:

1. Competition for Indian firms has increased.
2. The customer’s wider choice in purchasing better quality of goods and services.

Question 17.
List out any two steps in the selection process.
Answer:

1. Preliminary Screening: Preliminary screening helps the manager to eliminate unqualified job seekers.
2. Selection Tests: Various tests are conducted to know the level of ability, knowledge, interest, aptitude, etc. of a particular candidate.
3. Employment Interview: Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.

Question 18.
Name any two types of formal communication network.
Answer:

• Single Chain: This network exists between a supervisor and his subordinates. Here communication flows from every superior to his subordinate through single chain.

• Wheel: In wheel network, all subordinates under one superior communicate through him only. The subordinates are not allowed to communicate among themselves.

Part – III

A. Answer any 3 questions from 19 to 23. Each carries 4 scores. (3 × 4 = 12)

Question 19.
List out any four dimensions of business environment.
Answer:

1. Economic Environment: Interest rates, inflation rates, changes in disposable income of people, stock market; indices and the value of rupee are some of the economic factors that can affect the business enterprise.
2. Social Environment: The social environment of business includes the social forces like customs and traditions, values, social trends, literacy rate, educational levels, lifestyle, etc.
3. Technological Environment: Technological environment consists of new products, new technologies, new approaches to product, new methods and equipments, etc.
4. Political Environment: Political environment ‘ includes constitution, political parties and their ideology, types of govt., political stability, attitude towards business, etc.

Question 20.
Briefly explain any four tests used by organisations for selection process.
Answer:
a) Intelligence Tests: This is one of the important psychological tests used to measure the level of intelligence quotient (IQ) of an individual.
b) Aptitude Test: It is a measure of individual’s potential for learning new skills.
c) Personality Tests: Personality tests provide clues to a person’s emotions, reactions, maturity and value system, etc.
d) Trade Test: These tests measure the existing skills of the individual.
e) Interest Tests: Interest tests are used to know the pattern of interests or involvement of a person.

Question 21.
Explain Maslow’s Need Hierarchy Theory of motivation.
Answer:
Maslow’s Need Hierarchy Theory of Motivation
Abraham Maslow’s Need Hierarchy Theory is considered fundamental to understanding of motivation. His theory was based on human needs.

Various human needs are:

• Physiological Needs: These are the basic needs which include food, clothes, hunger, thirst, shelter, sleep and sex. If physiological needs are not satisfied, the higher level needs will not be emerged.
• Safety/Security Needs: These needs provide security and protection from physical and emotional harm. These needs include job security, stability of income, pension plans, etc.
• Social Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. Informal organisation helps to satisfy the social needs of an individual.
• Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention.
• Self Actualisation Needs : It is the highest level of need in the hierarchy. Self actualisation is the need to maximise one’s potential, whatever it may be. These needs include growth, self-fulfilment and achievement of goals.

Question 22.
Briefly explain the first four steps in the process of controlling.
Answer:

1. Setting Performance Standards: Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.
2. Measurement of Actual Performance: After establishing standards, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner.
3. Comparing Actual Performance with Standards: This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.
4. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations.

Question 23.
Briefly explain the four elements of Marketing Mix.
Answer:
Elements / 4 P’s of Marketing Mix

1. Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
2. Price: Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
3. Place: Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
4. Promotion: Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

B. Answer any 1 Question from 24 to 25. Carries 4 scores. (1 × 4 = 4)

Question 24.
Describe the importance of management,
Answer:
Need and Importance of Management

1. Achieving Group Goals: Efficient management co-ordinates all the activities for the achievement of organisational goals.
2. Increases Efficiency: Management helps to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
3. Creates Dynamic Organisation: A good management enables the business to adapt and adjust according to the changes in the business environment.
4. Achieving Personal Objectives: Through motivation and leadership, the management helps individuals to develop team spirit, co-operation and commitment to group success.
5. Development of Society: Management helps to provide good quality products and services, creates employment opportunities, adopts new technology, etc., for the good of the people and the society.

Question 25.
“Planning does not guarantee success.” Comment on the statement by narrating any four demerits of planning.
Answer:
Limitations of Planning

1. Planning makes the activities rigid;
2. Long term plans are insignificant in the rapidly changing business environment.
3. It reduces creativity.
4. It involves cost.

Part – IV

A. Answer any 3 questions from 26 to 29. Each carries 6 scores. (3 × 6 = 18)

Question 26.
What do you mean by co-ordination? Explain its importance in an organisation.
Answer:
Co-ordination: The process by which a manager synchronises the activities of different departments is known as co-ordination. Co-ordination is the force that binds all the other functions of management.

Importance of Co – ordination

1. It increases efficiency: Co-ordination increases organisational efficiency.
2. Key to other functions: Co-ordination is the key to other managerial functions. Co-ordination makes planning more effective, organisation more well-knit and control more regulative.
3. Functional differentiation: The process of linking the activities of various departments is accomplished by co-ordination.
4. Unity in diversity: In an organization, there are large numbers of employees with different ideas, culture, etc. Co – ordination brings unity in diversity.
5. Specialisation: Co – ordination helps to co- ordinate the efforts of various specialists in an organisation.

Question 27.
Write any six differences between formal organisation and informal organisation.
Answer:
Difference between formal organisation and informal organisation.

Formal organisation	Informal organisation
1) It is deliberately created by top level management.	1) It arises automatically as a result of social interaction among . the employees.
2) It has predetermined purpose.	2) It has no predetermined purpose.
3) It is highly rigid.	3) It is more flexible.
4) Communication is allowed through the scalar chain.	4) Communication is allowed through all channel networks.
5) Managers are leaders.	5) Leaders are chosen voluntarily by the members.
6) It is based on authority and responsibility.	6) There is no authority and responsibility relationship.

Question 28.
Briefly explain any six qualities required for a good leader.
Answer:
Qualities of a Good Leader

1. Physical Features: Physical features like height, weight, health, appearance determine the physical personality of a leader.
2. Knowledge: A good leader should have required knowledge and competence.
3. Honesty: A leader should possess high level of honesty.
4. Initiative: A leader should have courage and initiative.
5. Communication Skills: A leader should have the capacity to clearly explain the ideas.
6. Motivation Skills: The leader should have the ability to motivate the subordinates by satisfying their needs.
7. Self Confidence: A leader should have high level of self confidence.

Question 29.
Every finance manager has to take three important financing decisions. Which are they? Explain.
Answer:
1. Finance Decision: It relates to the amount of finance to be raised from various long term sources. The main sources of funds for a firm are shareholders’ funds (equity capital and the retained earnings) and borrowed funds (debentures or other forms of debt). A firm needs to have a judicious mix of both debt and equity in making financing decisions.

2. Investment Decision: The investment decision relates to how the firm’s funds are invested in different assets. Investment decision can be long-term or short-term. A long-term investment decision is also called a Capital budgeting decision.
Short-term investment decisions (also called working capital decisions) are concerned with the decisions about the levels of cash, inventory and receivables.

3. Dividend Decision: Dividend is that portion of profit which is distributed to shareholders. The decision involved here is how much of the profit earned by company (after paying tax) is to be distributed to the shareholders and how much of it should be retained in the business.

B. Answer any 2 questions from 30 to 32. Each carries 6 scores. (2 × 6 = 12)

Question 30.
Write a short note on the principles of scientific management.
Answer:
Principles of Scientific Management
1) Science and not the rule of thumb: The first principle of scientific management requires scientific study and analysis of each element of job in order to replace old rule of thumb approach.

2) Harmony, not discord: As per this principle, there should be complete harmony between the
management and workers. Taylor called for complete mental revolution on the part of both management and workers. Both the parties should realize each other’s importance and work towards the profits of the firm.

3) Co-operation not individualism: There should be complete co-operation between the labour and the management instead of individualism. According to Taylor, there should be an almost equal division of work and responsibility between workers and management.

4) Development of each and every person to his or her greatest efficiency and prosperity: The growth and development of an organisation depends on the efficiency and prosperity of employees. The efficiency of employees can be developed by giving proper training and development. This ensure the growth of an organisation.

Question 31.
Classify the following into financial incentive and non-financial incentive:
a) Bonus
b) Status
c) Job enrichment
d) Profit sharing
e) Retirement benefits
f) Employee Recognition programmes
Answer:
Financial Incentives : Bonus, profit sharing, retirement benefits.
Non financial incentives: Status, Job enrichment, Employee recognition programmes.

Question 32.
Describe different levels of packaging.
Answer:
Levels of Packaging

1. Primary Package: It refers to the product’s immediate container, e.g. toothpaste tube, match box, etc.
2. Secondary Packaging: It refers to additional layers of protection that are kept till the product
   is ready for use.
3. Transportation Packaging : It refers to further packaging components necessary for storage, identification or transportation.

PART – V

Answer any 2 questions from 33 to 35. Each carries 8 scores. (2 × 8 = 16)

Question 33.
Briefly explain any eight principles of management given by Henry Fayol.
Answer:

• Division of Work: This principle states that a complex work should be divided into small tasks, and each task should be assigned to a particular employee. Division of work leads to specialization.
• Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the manner directed by authority. There should be a balance between authority and responsibility.
• Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
• Unity of Command: The principle of unity of command states that each employee should receive orders from one superior only. It helps to avoid confusion and conflict in the employees.
• Unity of Direction: Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.
• Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
• Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
• Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.

Question 34.
Explain the various steps involved in planning process.
Answer:
Planning Process (Steps in Planning)

1. Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
2. Developing premises: Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
3. Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
4. Evaluating alternative Courses: The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
5. Selecting an alternative: After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
6. Implement the plan: Implementation of plan means putting plans into action so as to achieve the objectives of the business.
7. Follow up action: Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.

Question 35.
Describe the various steps in staffing process.
Answer:
Staffing Process

• Manpower planning: It is concerned with forecasting the future manpower needs of the organisation, i.e. finding out number and type of employees need by the organisation in future.
• Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
• Selectiongim: Selection is the process of selecting the most suitable candidates from a large number of applicants.
• Placement and Orientation: Placement refers to putting the right person on the right job. Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.
• Training and Development: The process of training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.
• Performance Appraisal: Performance appraisal means evaluating an employee’s current and past performance as against certain predetermined standards.
• Promotion and Career Planning: Promotion means movement of an employee from his present job to a higher level job.
• Compensation: Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, commissions and indirect payments like employer paid insurance and vacation.

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf March 2023 helps in understanding answer patterns.

Kerala Plus Two Business Studies Previous Year Question Paper March 2023

Time: 21/2 Hours
Total Score: 80 Marks

Answer any 8 questions from 1 to 10. Each carries 1 score: (8 × 1 = 8)

Question 1.
Achievement of goals with minimum resources is called:
(a) Efficiency
(b) Effectiveness
(c) Goal setting
(d) All of these
Answer:
(a) Efficiency

Question 2.
Study of movement like lifting, changing possition etc. are called ………………….
(a) Time study
(b) Fatigue study
(c) Motion study
(d) None of these
Answer:
(c) Motion study

Question 3.
A plan developed for a one time event is called …………………
(a) Standing plans
(b) Single use plans
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Single use plans

Question 4.
Complete the series :

(a) Formation is based on functions	Functional Structure
(b) Formation is based on product lines?	?

Answer:
Divisional Structure

Question 5.
The process of finding possible candidates for a job is ………………………
(a) Selection
(b) Training
(c) Recruitment
(d) None of these
Answer:
(c) Recruitment

Question 6.
Pay and allowance is an example of ……………………..
(a) Financial incentives
(b) Non-financial incentive
(c) Both (a) & (b)
(d) Non of these
Answer:
(a) Financial incentives

Question 7.
The process of ensuring that, the activities in an organisation are performed as per the plans is …………………..
(a) Planning
(b) Organising
(c) Controlling
(d) Directing
Answer:
(c) Controlling

Question 8.
The quantum of finance to be raised from various long-term sources is related to:
(a) Investment Decisions
(b) Financing Decisions
(c) Dividend Decisions
(d) None of these
Answer:
(b) Financing Decisions

Question 9.
The amount of money that the customers have to pay to obtain the; product is …………………
(a) Price
(b) Profit
(c) Loss
(d) Margin
Answer:
(a) Price

Question 10.
Which among the following is the apex authority as per Consumer Protection Act?
(a) District Forum
(b) National Commission
(c) State Commission
(d) High Court
Answer:
(b) National Commission

II. Answer any 5 questions from 11 to 16, each carries 2 scores. (5 × 2 = 10)

Question 11.
Briefly explain the concept of management.
Answer:
Management is a group activity which co-ordinates human resources and non – human resources in order to attain the objectives of an organisation. It includes planning, organising, staffing, directing, co-ordinating and controlling.

Question 12.
Complete the following chart:

Answer:
a. Privatisation
b. Globalisation

Question 13.
Write a note on ‘Planning Premises’.
Answer:
Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.

Question 14.
Explain the meaning of formal organisation.
Answer:
Formal organisation refers to an organisation structure which is deliberately created by the management to achieve the objectives. It is a system of well. defined job in terms of authority, responsibility and accountability.

Question 15.
List out the four elements of direction.
Answer:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Question 16.
Write the four steps of controlling process.
Answer:

1. Setting Performance Standards: Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.
2. Measurement of Actual Performance: After establishing standards, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner.
3. Comparing Actual Performance with Standards: This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.
4. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations.
5. Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within the acceptable limits.

III. Answer any 5 questions from 17 to 22, each carries 3 scores. (5 × 3 = 15)

Question 17.
Briefly explain any three techniques of Scientific Management.
Answer:

1. Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the quality of the work.
2. Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
3. Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

Question 18.
Describe the three important elements of staffing.
Answer:

1. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
2. Selection: Selection is the process of selecting the most suitable candidates from a large number of applicants.
3. Training and Development: The process of training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.

Question 19.
Illustrate any three features of directing.
Answer:
Features

1. Directing initiate action
2. Directing takes place at every level of management
3. Directing is a continuous process
4. Directing flows from top to bottom

Question 20.
Briefly explain any three importance of controlling.
Answer:

1. Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.
2. Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate.
3. Making efficient use of resources: By exercising control, a manager seeks to reduce wastage of resources.
4. Improving employee motivation: A good control system motivates the employees and helps them to give better performance.

Question 21.
Finance is the life blood of business. Explain.
Answer:
Money required for carrying out business activities is called business finance. Finance is needed to establish a business, to run it, to modernise it, to expand or diversify it.

Question 22.
How is a brand name different from trade mark? Explain.
Answer:
Brand Name: That part of a brand, which can be vocalized i.e. can be spoken is called a brand name, e.g. Asian Paints, Maggie, Lifebuoy, Dunlop, etc.

Trade Mark: A brand or part of a brand that is given legal protection against its use by other firms is called trade mark. The firm which got its brand registered with the government, gets the exclusive right for its use.

IV. Answer any 4 questions from 23 to 27, each carries 4 scores. (4 × 4 = 16)

Question 23.
Write any four functions of middle level management.
Answer:

1. Carry out the plans formulated by the top managers.
2. To act as a link between Top Level Management and Lower Level Management.
3. Assign necessary duties and responsibilities to the subordinates.
4. Motivate them to achieve desired objectives.
5. Co-operate with other departments.
6. Reporting to top level management.

Question 24.
Math the following:

(a) Inflation rate	(i) Political Environment
(b) Customs & Traditions	(ii) Technological Environment
(c) Scientific improvements	(iii) Economic Environment
(d) Ideology of Government	(iv) Social Environment

Answer:

a) Inflation rate	(iii) Economic Environment
b) Customs & Traditions	(iv) Social Environment
c) Scientific Improvements	(ii) Technological Environment
d) Ideology of Government	(i) Political Environment

Question 25.
Write any four differences between functional and divisional strucutre of organisation.
Answer:

Functional Structure	Divisional Structure
1. Formation is based on functions	1. Formation is based on product lines.
2. Functional specialisation	2. Product specialisation
3. Difficult to fix responsibility on a department	3. Easy to fix responsibility for performance
4. It is economical	4. It is costly
5. Suitable for small organisation	5. Suitable for big organisation

Question 26.
Explain any four factors affecting the requirement of Fixed Capital.
Answer:

1. Nature of Business: A trading concern needs lower investment in fixed assets compared with a manufacturing organization.
2. Scale of Operations: An organisation operating on large scale require more fixed capital as compared to an organisation operating on small scale.
3. Choice of Technique: A capital-intensive organisation requires more amount of fixed capital than labour intensive organisations.
4. Technology Upgradation: Organisations using assets which become obsolete faster require more fixed capital as compared to other organisations.
5. Growth Prospects: Higher growth of an organisation generally requires higher investment in fixed assets.

Question 27.
Give a brief idea about any four consumer rights.
Answer:

1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health.
2. Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.
3. Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices.
4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with goods or services.

V. Answer any 3 questions from 28 to 31, each carries 5 scores. (3 × 5 = 15)

Question 28.
Henry Fayol propounded 14 principles of management. Explain any five among them.
Answer:

• Division of Work: This principle states that a complex work should be divided into small tasks, and each task should be assigned to a particular employee. Division of work leads to specialization.
• Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the manner directed by authority. There should be a balance between authority and responsibility.
• Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
• Unity of Command: The principle of unity of command states that each employee should receive orders from one superior only. It helps to avoid confusion and conflict in the employees.
• Unity of Direction: Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.

Question 29.
Explain any five features of Planning.
Answer:

1. Planning is goal oriented
2. It is the primary function of management
3. It is required at all levels of management
4. Planning is a continuous process
5. Planning is futuristic (forward looking)

Question 30.
Dividend decision of the Financial Management is based on certain factors. Explain any five such factors.
Answer:

1. Stability Earnings: A company having stable earnings can declare higher dividends. Otherwise, pay lower dividend.
2. Stability of Dividends: Companies generally’ follow a policy of stabilising dividend per share. Dividend per share is not altered if the change in earnings is small.
3. Growth Opportunities: Companies having good growth opportunities retain more money out of their earnings to finance the required investment. In such a case, they can declare dividend at a lower rate.
4. Cash Flow Positions: Availability of enough cash in the company is necessary for declaration of dividend.
5. Shareholders’ Preference: While declaring dividends,.managements must keep in mind the preferences of the shareholders in this regard.

Question 31.
Briefly explain any five sales promotion techniques.
Answer:

1. Rebate: Offering products at special prices, to clear off excess inventory.
2. Discount: Offering products at less than maximum retail price.
3. Refund: The seller offers to refund a part of the price paid by the customer on production of some proof of purchase.
4. Free gifts: Offering another product as gift along with the purchase of a product.
5. Quantity Gift: Offering extra quantity of the product.
6. Contests: Prize contests are organized for the consumers and winners are given attractive prizes.

VI. Answer any 2 questions from 32 to 34, each carries 8 scores. (2 × 8 = 16)

Question 32.
Staffing is not a simple process, it involves various steps. Explain.
Answer:
Staffing Process

1. Manpower planning: It is concerned with forecasting the future manpower needs of the organisation, i.e. finding out number and type of employees need by the organisation in future.
2. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
3. Selection: Selection is the process of selecting the most suitable candidates from a large number of applicants.
4. Placement and Orientation: Placement refers to putting the right person on the right job. Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.
5. Training and Development: The process of’ training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.
6. Performance Appraisal: Performance appraisal means evaluating an employee’s current and past performance as against certain predetermined standards.
7. Promotion and Career Planning: Promotion means movement of an employee from his present job to a higher level job.
8. Compensation: Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, commissions and indirect payments like employer paid insurance and vacation.

Question 33.
Explain the elements of communication by drawing a diagram.
Answer:
Communication: Communication may be defined as an exchange of facts, ideas, opinions or emotions between two or more persons to create mutual understanding.
Elements of Communication Process

1. Sender: The sender is the person who sends message or idea to the receiver.
2. Message: Message is the subject matter of communication.
3. Encoding: It is converting the message into communication symbols such as words, pictures, etc.
4. Media: It is the path through which encoded message is transmitted to receiver.
5. Decoding: It is the process of converting encoded symbols of the sender.
6. Receiver: Receiver is the person who receives the message.
7. Feedback: It includes all those actions of receiver indicating that he has received and understood message of sender.
8. Noise: Noise means some obstruction or hindrance to communication.

Question 34.
What are the key elements of four ‘Ps’ of marketing? Explain.
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements / 4 P’s of Marketing Mix

• Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
• Price : Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.
• Place : Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.
• Promotion : Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Teachers recommend solving Kerala Syllabus Plus Two Accountancy AFS Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.

Kerala Plus Two Accountancy AFS Board Model Paper 2021 with Answers

Time: 2 Hours
Maximum Score: 60

Part – B
Analysis of Financial Statements

VII. Questions from 23 to 26 carry 1 score each. (4 × 1 = 4)

Question 23.
Debentures, those which are redeemable on the expiry of the specific period,d are called ______________ debentures.
(a) Secured
(b) Convertible
(c) Redeemable
(d) Bearer
Answer:
(c) Redeemable

Question 24.
Capital Reserve shown under which head of the financial statement of a company?
(a) Shareholder’s funds
(b) Non-current liabilities
(c) Non-current assets
(d) None of these
Answer:
(a) Shareholder’s funds

Question 25.
Financial statement analysis helps to know which of the following?
(a) Profitability
(b) Operational efficiency
(c) Long-term liquidity
(d) All of these
Answer:
(d) All of these

Question 26.
Identify the liquidity ratio from the following:
(a) Debt-Equity Ratio
(b) Gross-Profit Ratio
(c) Net-Profit Ratio
(d) Current Ratio
Answer:
(d) Current Ratio

VIII. Questions from 27 to 29 carry 2 scores each. (3 × 2 = 6)

Question 27.
What is a preference share?
Answer:
Preference shares are the shares which enjoy preference as to the payment of a fixed dividend and the return of capital on winding up of the company.

Question 28.
List out any two financial statements of a company.
Answer:
Income statement and position statement.

Question 29.
List out any two tools used for analysis of financial statements.
Answer:

• Comparative statement
• Common size statement
• Ratio analysis

IX. Questions from 30 to 32 carry 3 scores each. (3 × 3 = 9)

Question 30.
List out any three features of a limited company.
Answer:
Features of a limited company:

• Limited liability
• Separate legal entity
• Common seal
• Perpetual succession

Question 31.
List out any three methods of redemption of Debentures.
Answer:

• Lumpsum payment method.
• Purchasing own debentures from the open market.
• Conversion of debentures into shares or new debentures.
• Draw of lots.

Question 32.
State the three objectives of financial statements of a company.
Answer:

• To provide information about the assets and liabilities of a business concern.
• To give information about changes in assets and liabilities.
• To provide information about changes in net assets.
• To disclose information about the earnings capacity of the business.

X. Questions from 33 to 37 carry 4 scores each. (5 × 4 = 20)

Question 33.
Explain the terms “Calls-in-arrear” and “Calls-in-advance” with suitable examples.
Answer:
Calls-in-arrear:
When a shareholder fails to pay the amount due on allotment or on any calls, such unpaid amount is called calls in arrear.
For example: Chetna a shareholder who hold 200 shares failed to pay call money of Rs. 2 per share.
Call-in-arrear is 200 × 2 = 400/-

Calls-in-advance:
Some shareholders pays a part or whole of the amount of the calls not yet made. The amount so received from the shareholders is known as calls in advance.
For example Anal, a shareholder holding 200 shares paid the entire call money along with allotment.

Question 34.
List out four rules of the Companies Act, to form a one-person company.
Answer:

• A one-person company cannot carry on non-banking financial activities.
• A minor cannot become a member of a one-person company.
• Only a natural person being an Indian citizen and resident in India can form a one person company.
• The share capital of a one person company is not more than Rs. 50 lakhs or
• Its annual turnover during the last three consecutive financial years exceeds two crores.

Question 35.
List out any four limitations of financial statement analysis.
Answer:

• Financial analysis is just a study of the reports of the company.
• It does not consider price level changes.
• Financial statement analysis is based on the money measurement concept.
• Financial analysis is only a means, not the results.

Question 36.
From the following information, calculate inventory turnover ratio:
Revenue from Operations: Rs.5,00,000
Gross Profit: Rs. 1,00,000
Average Inventory: Rs. 40,000
Answer:
Inventory turn over ratio = \(\frac{Cost of goods sold}{Average Inventory}\)
= \(\frac{4,00,000}{4,000}\)
= 10 times
(Cost of goods sold = 5,00,000 – 1,00,000 = 4,00,000)

Question 37.
State any four benefits of cash flow statement.
Answer:

• It provides information about the financial aspects of a business.
• It helps to know the firm’s ability to pay dividend, or interest to investors, and meet its obligation to creditors.
• It projects future inflows and outflows of cash.
• It also facilitates interfirm comparison.

XI. Questions from 38 to 42 carry 5 scores each. (5 × 5 = 25)

Question 38.
Krishna Ltd. issued 2,00,000 shares of Rs.10 each. Company received applications on 3,00,000 shares. Identify this situation. State three options before the company to overcome this situation.
Answer:
Oversubscription: there are 3 alternatives available to deal with oversubscription.

• Accept some applications in full and reject the others.
• Make pro-rata allotment.
• A combination of the above two alternatives.

Question 39.
What is the share capital of a company? Explain briefly the categories of share capital with a suitable example.
Answer:
Share Capital: The share capital is the amount of capital raised by a company by the issue of shares.
Different kinds of Share Capital

• Authorised, Registered or Nominal Capital
• Issued Capital
• Subscribed Capital
• Called up Capital
• Paid-up Capital

Question 40.
Laxmi, a shareholder of 1000 shares of Rs.10 each, did not pay the allotment money Rs. 3 per share and first and final call of Rs. 4 per share. Her shares were forfeited after the first and final call. These shares were re-issued to Shamla for Rs.8 per share as fully paid. Pass Journal entries for these transactions in the books of the company.
Answer:
Journal

Question 41.
From the following statement of profit and loss of Neetha Nutry Ltd. prepare Comparative Statement of Profit & Loss for the year ended 31 March, 2019 and 2020.

Answer:
Comparative Statement of Profit/Loss

Question 42.
The following information are given by a company from its books of accounts as on March 31, 2020:
Total current assets – Rs. 3,00,000
Total current liabilities – Rs. 1,50,000
Inventory – Rs. 75,000
Calculate:
(i) Current Ratio
(ii) Liquid Ratio
Answer:
(i) Current Ratio = \(\frac{Current Assets}{Current Liabilities}\)
= \(\frac{3,00,000}{1,50,000}\)
= 2 : 1

(ii) Liquid Ratio = \(\frac{Liquid Assets}{Current Liabilities}\)
Liquid Assets = Current Assets – Inventory
= 3,00,000 – 75,000
= 2,25,000
Liquid Ratio = \(\frac{2,25,000}{1,50,000}\) = 1.5 : 1

XII. Questions from 43 to 44 carry 8 scores each. (2 × 8 = 16)

Question 43.
Chandra Paints Ltd. issued to the public for subscription 1,00,000 shares of Rs. 10 each at par, payable at Rs. 3 on application, Rs. 4 on allotment and Rs. 3 on 1st and final call. The issue was fully subscribed and all the money were duly received. Record journal entries for the above in the books of the company.
Answer:
Journal

Question 44.
What is debenture? Briefly explain different types of debentures.
Answer:
Debenture is a written acknowledgement of debt taken by a company.
Types of Debentures

• Secured or Mortgage Debentures and Unsecured debentures.
• Redeemable Debentures and Irredeemable Debentures.
• Convertible and Non-convertible Debentures.
• Bearer Debentures and Registered Debentures.
• Zero coupon bond and Specific Rate Debentures.

Teachers recommend solving Kerala Syllabus Plus Two Accountancy AFS Previous Year Question Papers and Answers Pdf Board Model Paper 2022 to improve time management during exams.

Kerala Plus Two Accountancy AFS Board Model Paper 2022 with Answers

Time: 2 Hours
Maximum Score: 60

Section – II
Analysis of Financial Statements (40 Scores)

Part – VI

A. Answer any four questions from 25 to 30. Each carries 1 score. (4 × 1 = 4)

Question 25.
Equity shareholders are ____________________
(a) Creditors
(b) Customers
(c) Owners
(d) Debtors
Answer:
(c) Owners

Question 26.
Interest on calls in advance payable according to table F is
(a) 6%
(b) 12%
(c) 5%
(d) 10%
Answer:
(b) 12%

Question 27.
Debentures constitute ____________________ capital of the company.
(a) Owned
(b) Borrowed
(c) Authorised
(d) Reserve
Answer:
(b) Borrowed

Question 28.
The financial statements of a business enterprise include:
(a) Balance Sheet
(b) Cash Flow Statement
(c) Statement of Profit and Loss
(d) All of the above
Answer:
(d) All of the above

Question 29.
A company issued a share of face value of Rs. 10 to Rs. 15. The excess value is called
(a) Reserve
(b) Premium
(c) Nominal Value
(d) Discount
Answer:
(b) Premium

Question 30.
One of the tools used for financial analysis is also known as 100% statements. Identify it.
(a) Common size statement
(b) Comparative statement
(c) Trend analysis
(d) Cash flow analysis
Answer:
(a) Common size statement

B. Answer all questions from 31 to 35. Each carries 1 score. (3 × 1 = 3)

Question 31.
Find the odd one.
(a) Current Ratio
(b) Debt Equity Ratio
(c) Liquid Ratio
(d) Operating Ratio
Answer:
(d) Operating Ratio

Question 32.
A company proposes a 20% dividend on equity shares. If the paid up amount of equity shares is Rs. 10 per share, Dividend per share will be ____________________
(a) Rs. 4
(b) Rs. 2
(c) Rs. 6
(d) Rs. 10
Answer:
(b) Rs. 2

Question 33.
When shares are issued for cash, there is
(a) Inflow of cash
(b) Outflow of cash
(c) Both inflow and outflow of cash
(d) None of the above
Answer:
(a) Inflow of cash

Part – VII

A. Answer the following question carries 2 scores. (1 × 2 = 2)

Question 34.
What do you mean by One Person Company?
Answer:
Section 2(62) of the Companies Act, 2013-OPC means a company with only one person as a member.

B. Answer any one question from 35 to 36. Carries 2 scores. (1 × 2 = 2)

Question 35.
MK Ltd. purchased a machine from Santhi Ltd. for Rs. 5,50,000 and paid Rs. 50,000 in cash and balance by issue of shares of Rs. 10 each. Write the Journal entry for purchase consideration.
Answer:

Question 36.
Explain the nature of the Financial Statements. (Any two points only)
Answer:

1. Recorded Facts
2. Accounting Conventions
3. Personal Judgment

Part – VII

A. Answer any three questions from 37 to 40. Each carries 3 scores. (3 × 3 = 9)

Question 37.
Arjun Ltd. invited applications for 20,000 equity shares of Rs. 10 each. Applications were received for 30,000 shares, and the directors decided to make a pro rata allotment by adjusting the excess application money toward S’the amount due on allotment. Pass Journal entries when the application money is Rs. 3 per share.
Answer:
Journal

Question 38.
Give Journal entries for issue of Rs. 1,50,000, 10% debentures of Rs. 100 each issued at par and redeemed at par.
Answer:
Journal

Question 39.
Classify the following transactions into operating activities and investing activities of a manufacturing concern.
(a) Rent of factory paid
(b) Purchase of Land
(c) Sale of Goods
(d) Paid cash to Suppliers
(e) Purchase of Furniture
(f) Investment in Fixed Deposit
Answer:

Operating Activities	Investing Activities
Rent of the factory paid	Purchase of Land
Sale of goods	Purchase of Furniture
Paid cash to suppliers	Investment in Fixed Deposit

Question 40.
Amrita, a shareholder holding 300 shares of Rs. 10 each, did not pay the allotment money of Rs. 5 per share (including a premium of Rs. 2) and the first and final call of Rs. 4. Her shares were forfeited. Give a journal entry for forfeiture.
Answer:

B. Answer the following question, carries 3 scores. (1 × 3 = 3)

Question 41.
Sun Ltd. purchased assets of the book value of Rs. 2,50,000 from Moon Ltd. and agreed to make the payment of purchase consideration by issuing 2500, 9% debentures of Rs. 100 each. Record necessary Journal Entries.
Answer:

Part – IX
A. Answer any two questions from 42 to 44. Each carries 4 scores.

Question 42.
Distinguish between Shares and Debentures.
Answer:

Shares	Debentures
1. Share is a part of owned capital.	1. Debenture is a part of loan or borrowed capital.
2. Dividend is paid on a share.	2. Interest is paid on debentures.
3. Shareholder is a proprietor.	3. Debenture holder is a creditor.
4. A share is unsecured.	4. Debentures are generally secured.
5. Shareholder enjoys voting right.	5. Debenture holders do not enjoy voting rights.
6. Shareholder gets dividend only if there is a profit.	6. The debenture holder gets interest whether the company makes profit or not.

Question 43.
Explain the limitations of the Financial Statement. (Any Four).
Answer:

1. They are only interim reports: The financial statements are prepared at the end of each accounting year. But the actual position of a business can be determined only when the business is sold or liquidated. So financial statements are only interim reports.
2. Do not give exact position: Financial statements do not give the correct position of a business. Fixed assets are shown at cost less depreciation, not at saleable value. Assets which do not have any realisable (saleable) value are also shown in the Balance Sheet.
3. Historical Cost: The financial Statements are prepared based on original {historical} cost. The value of assets and liabilities may be changed {increased or decreased}; but financial statements do not consider such changes or present market values.
4. Non-monetary factors: Only factors which can be expressed in terms of money value are given in financial statements. Non-monetary factors like efficiency of management, quality of employees, credit worthiness of the business are ignored.
5. Non-precision: Financial Statements deal with matters which should be given in detail. So the precision {briefing} of financial statements is not possible.

Question 44.
Prepare a comparative statement of Profit and Loss of Star Company Ltd. from the following.

Answer:

B. Answer any one question from 45 to 46. Carries 4 scores. (1 × 4 = 4)

Question 45.
The Directors of a Ltd. Co., decided to forfeit 500 equity shares of Rs. 10 each for non-payment of second and final call of Rs. 3 per share. These shares were re-issued at Rs. 8 per share. Show the necessary Journal Entries.
Answer:
Journal

Question 46.
“The nature of financial analysis will differ depending on the purpose of the analyst.” In the light of this, explain the significance of Analysis of Financial Statements.
Answer:
Financial analysis is useful and significant to different users in the following ways:

1. Finance manager: Financial analysis focuses on the facts and relationships related to managerial performance, corporate efficiency, financial strengths and weaknesses, and creditworthiness of the company. A finance manager must be well-equipped with the different tools of analysis to make rational decisions for the firm. The tools for analysis help in studying accounting data to determine the continuity of the operating policies, investment value of the business, credit ratings, and testing the efficiency of operations.
2. Top management: Financial analysis helps the top management in measuring the success of the company’s operations, appraising the individual’s performance and evaluating the system of internal control.
3. Trade payables: Trade payables, through an analysis of financial statements, appraises not only the ability of the company to meet its short-term obligations, but also judges the probability of its continued ability to meet all its financial obligations in the future. Trade payables are particularly interested in the firm’s ability to meet their claims over a very short period. Their analysis will, therefore, evaluate the firm’s liquidity position.
4. Lenders: Suppliers of long-term debt are concerned with the firm’s long-term solvency and survival. They analyse the firm’s profitability over some time, its ability to generate cash, to be able to pay interest and repay the principal, and the relationship between various sources of funds (capital structure relationships). Long-term lenders analyse the historical financial statements to assess the future solvency and profitability.
5. Investors: Investors, who have invested their money in the firm’s shares, are interested in the firm’s earnings. Financial analysis helps the investors to know the present position and future profitability of the company.
6. Labour unions: Labour unions analyse the financial statements to assess whether they can presently afford a wage increase and whether it can absorb a wage increase through increased productivity or by raising the prices.
7. Others: The economists, researchers, etc., analyse the financial statements to study the present business and economic conditions. The government agencies need it for price regulations, taxation, and other similar purposes.

Part – X

Answer any one question from 47 to 48. Carries 5 scores. (1 × 5 = 5)

Question 47.
Sathya Ltd. issued 30,000 Equity Shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows:
On Application Rs. 3
On Allotment Rs. 5 (including premium)
On First and Final call Rs. 4
Applications were received for 35,000 shares and prorata allotment was made to all applicants. The excess application money was adjusted towards the allotment. Record necessary journal entries in the books of the company.
Answer:
Journal

Question 48.
Balance Sheet of Megha Ltd. as on March 31st, 2021 is given below:

Compute the following ratios:
(a) Current Ratio
(b) Debt Equity Ratio
Answer:
(a) Current Ratio = \(\frac{CurrentAssets}{Current Liabilities}\)
Current assets = 1,75,000 + 3,25,000 + 30,000 = 5,30,000
Current liabilities = 2,90,000
Current ratio = \(\frac{530000}{290000}\) = 1.83 : 1

(b) Shareholders fund = Share capital + Reserves and surplus
= 3,00,000 + 2,00,000
= Rs.5,00,000
Debt-Equity Ratio = \(\frac{Long Term Debt}{Share Holders Fund}\)
= \(\frac{1,00,000}{5,00,000}\)
= 0.2 : 1

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Kerala Plus Two Accountancy AFS Board Model Paper 2023 with Answers

Time: 2 Hours
Maximum Score: 60

Part – B

Answer any four questions from 17 to 21. each carries 1 Score. (4 × 1 = 4)

Question 17.
That part of called up capital which is not paid by the shareholders is:
(a) Call money
(b) Calls-in-arrears
(c) Calls-in-advance
(d) None
Answer:
(b) Calls-in-arrears

Question 18.
From the following, identify the cash inflows from operating activities:
(a) Purchase of land
(b) Sale of goods
(c) Sale of old furniture
(d) Issue of shares
Answer:
(b) Sale of goods

Question 19.
Find the odd one.
(a) Current ratio
(b) Liquid ratio
(c) Quick ratio
(d) Debt-equity ratio
Answer:
(d) Debt-equity ratio

Question 20.
From the given items, which is a part of current liabilities?
(a) Stock
(b) Trade payables
(c) Trade receivables
(d) Cash and Cash equivalents
Answer:
(b) Trade payables

Question 21.
Debentures having a charge on the fixed assets of the company are:
(a) Redeemable debentures
(b) Unsecured debentures
(c) Secured debentures
(d) Registered debentures
Answer:
(c) Secured debentures

Answer all questions from 22 to 23. each carries 2 Scores. (2 × 2 = 4)

Question 22.
Name the debentures mentioned in the following:
(a) Debentures redeemable after a specific period.
(b) Debenture redeemable on the winding up of the company.
Answer:
(a) Redeemable Debentures
(b) Irredeemable Debentures

Question 23.
Calculate current ratio from the following:
Debtors – ₹ 4,00,000
Stock – ₹ 2,40,000
Cash – ₹ 1,20,000
Prepaid expenses – ₹ 40,000
Bills Payables – ₹ 80,000
Creditors – ₹ 1,20,000
Answer:
Current Ratio = \(\frac{Current Assets}{Current Liabilities}\)
Current Assets = 4,00,000 + 2,40,000 + 40,000 + 1,20,000 = 8,00,000
Current Liabilities = 80,000 + 1,20,000 = 2,00,000
Current Ratio = \(\frac{8,00,000}{2,00,000}\) = 4 : 1

Answer any two questions from 24 to 26, each carries 3 marks. (2 × 3 = 6)

Question 24.
Write three examples for cash flows from investing activities.
Answer:
Cash flows from investing activities:

• Purchase of fixed assets.
• Purchase of investments (long term).
• Interest received.
• Dividend received.

Question 25.
Journalise the following:
(a) 500 Debentures of ₹ 100, issued at par, redeemable at par.
(b) 500 Debentures of ₹ 100, issued at par, redeemable at 10% premium.
Answer:
(a) Journal

(b) Journal

Question 26.
Match the following:

A	B
Call money due but not received	Calls-in-advance
Call money not due but received	Forfeiture of shares
Cancellation of shares due to non-payment	Calls-in-arrears

Answer:
(a) Calls in arrears
(b) Calls in advance
(c) Forfeiture of shares

Answer all questions from 27 to 28, each carries 4 scores. (2 × 4 = 8)

Question 27.
Under what heading would you record the following items in the financial statements of a company?
(a) Inventory
(b) Long term provisions
(c) Long term loans
(d) Share capital
Answer:
(a) Inventories – Current asset
(b) Long term provisions – Non-current liabilities
(c) Long term loans – Non-current liabilities
(d) Share capital – Shareholders’ fund

Question 28.
Distinguish between Shares and Debentures. (4 points)
Answer:
Difference between Share and Debenture

• Share is an ownership security. But debenture is a creditorship security.
• Dividend is paid on shares. But interest is paid on debentures.
• The rate of dividend on the share may vary from year to year. But the rate of interest on debenture is fixed.
• Shareholders are the owners of the company. But debenture holders are the creditors of the company.
• A share is unsecured. But debenture is secured.
• Shareholder enjoys voting right. But debenture holder has no voting rights.

Answer all questions from 29 to 30, each carries 5 points. (2 × 5 = 10)

Question 29.
From the following information, prepare a comparative statement of profit and loss for the year ended March 31st, 2022.

Answer:

Question 30.
From the following particulars, calculate cash flows from investing activities:
Purchase of Plant – ₹ 2,00,000
Sales of Plant – ₹ 30,000
Purchase of Investment – ₹ 1,50,000
Sale of Investment – ₹ 40,000
Interest Received on Investments – ₹ 10,000
Answer:
Calculation of Cash flows from investing activities:

Answer any one question from 31 to 32, which carries 8 scores. (1 × 8 = 8)

Question 31.
Omega Ltd., issued 20000 shares of ₹ 10 each payable ₹ 3 per share on application, ₹ 5 per share on allotment and the balance of first and final call. All the shares were fully subscribed for and the amount duly received except the call money on 500 shares. These shares were forfeited by the company. Pass the journal entries.
Answer:
Journal

Question 32.
(a) Complete the following table with suitable ratios:
Activity Ratios
1. __________________
2. __________________
Profitability Ratios
1. __________________
2. __________________
(b) Calculate Stock Turnover Ratio and Gross Profit ratio from the following:
Opening stock – ₹ 45,000
Closing stock – ₹ 55,000
Purchases – ₹ 1,60,000
Revenue from operations – ₹ 2,00,000
Answer:
(a) Activity Ratios – Inventory turnover ratio and Debtors turnover ratio
Profitability ratio – Gross profit ratio and Net profit ratio

(b) Stock turnover ratio = \(\frac{\text { Cost of revenue from operation }}{\text { Average inventory }}\)
Cost of Goods Sold or Cost of revenue from operation = Opening Stock + Purchases + Direct Expenses – Closing Stock
= 45,000 + 1,60,000 – 55,000
= 1,50,000
Average inventory = \(\frac{\text { Opening stock }+ \text { Closing stock }}{2}\)
= \(\frac{45,000+55,000}{2}\)
= 50,000
Stock turnover ratio = \(\frac{1,50,000}{50,000}\) = 3 times
Gross profit ratio = \(\frac{\text { Gross Profit }}{\text { Revenue from operations }}\)
Gross profit = Revenue from operations – Cost of revenue from operations
= 2,00,000 – 1,50,000
= 50,000
Gross profit ratio = \(\frac{50,000}{2,00,000}\) = 25%

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Kerala Plus Two Computer Application Board Model Paper 2021 with Answers

Time: 2 Hours
Total Score: 60 Marks

Answer any number of questions from 1 to 44 upto a maximum score of 60.

Question 1.
Answer any number of questions from (a) to (e). Each carries 1 score. (1 × 5 = 5)
a. The basic building block of C++ program is called ………………..
b. Name the built-in function used to find the length of a string in C++.
c. Expand CMS.
d. Number of columns in a relation is called ………………..
e. Name the technology used to send multimedia content using mobile phones.
Answer:
(a) Tokens
(b) strlen()
c) Content Management System
d) Degree
e) MMS

Answer any number of questions from 2 to 21. Each carries 2 scores. (20 × 2 = 40)

Question 2.
Name any four fundamental datatypes in C++.
Answer:
void, char, int, float and double

Question 3.
Write the valid identifiers from the following:
(a) abc 12
(b) float
(c) number
(d) p.qr
Answer:
a) abc 12 – valid
b) float – invalid , because it is a keyword.
c) number – valid
d) p.qr – invalid, because special character .(dot) cannot be used.

Question 4.
What is header file? Write an example.
Answer:
A header file is a file to support C++ programs such as information about various functions (eg. String functions,mathematical functions etc), objects (eg. cin and cout), etc.
Examples are iostream, cmath, cctype, cstdio etc.

Question 5.
Write the syntax of an array with an example.
Answer:
Array is a collection of elements with same data type.
Syntax: DataType ArrayNamejsize];
Data type may be char, int, float or double.
Example : int mark[50]; or char name[40];

Question 6.
Write array declaration statement for the following:
(a) To store roll number of 60 students in a class.
(b) To store percentage of total mark of 25 students.
Answer:
a) int rollNo[60]; or int Rno[60];
b) float percentage[25]; or float percent[25];

Question 7.
Differentiate abs() and pow() in C++.
Answer:
Both are mathematical functions in C++.
abs() – It’s used to find the absolute value of a given integer(means it returns the number without sign). It requires only one argument.
Eg. abs(-54) returns 54.
pow() – It’s used to find the power of a given number. It requires two arguments.
Eg. pow(5, 2) means 5²= 25.

Question 8.
Name the function used in C++ to
(a) Convert uppercase character to lowercase.
(b) Check whether the given character is digit or not.
Answer:
a) tolower();
b) isdigit();

Question 9.
What is the difference between container tag and empty tag?
Answer:
Container tag consists of both opening and closing tags. Eg. <html> &</html>, <body>&</body> etc. Empty tag consists of opening tag only. Eg. <hr>, <br>,<img> etc.

Question 10.
Write the use of <U> and <I> tag.
Answer:
<U> It is used to underline a text. Eg. <U>BVM HSS</U>
<I> It is used to make a text italics. Eg. <I>BVM HSS</I>

Question 11.
Write the difference <SUB> tag and <SUP> tag.
Answer:
<sub>(subscript) -: It is used to make subscript.
Eg. H₂O – here 2 is a subscript. It can be written as H₂0
<sup>(superscript) -: It is used to make superscript.
Eg. x³ + y⁵ – here 3 and 5 are superscripts. It can be written as x³ + y⁵.

Question 12.
Write any two attributes of <BODY> tag.
Answer:
background, bgcolor, text, link, alink, vlink, leftmargin and topmargin(any2)

Question 13.
Differentiate Colspan and Rowspan of <TD> tag in html.
Answer:
Colspan is used to specify the number of columns occupied by a cell. Similarly rowspan is used to specify the number of rows occupied by a cell.
Eg. <td colspan=”3″>Total</td>

Question 14.
What is the use of <A> tag? Write the main attribute of <A> tag.
Answer:
<A> tag is used to create hyperlinks(internal or external). Its main attribute is href.

Question 15.
List any two attribute of <TR> tag.
Answer:
Align, valign and bgcolor(any 2)

Question 16.
Write any two data types in JavaScript.
Answer:
Number(to store numerical value, String(to store combination of characters) and Boolean( to store values such as true or false) (Any 2)

Question 17.
Write the use of <SCRIPT>tag in JavaScript. Write the use of language attribute of <SCRIPT> tag.
Answer:
It is used to write scripts in an HTML-program, One of its attribute is Language, to specify the scripting language.

Question 18.
List the two numerical data type in SQL.
Answer:
int, dec.

Question 19.
Write the difference between PRIMARY KEY and NOT NULL column constraints in SQL.
Answer:
Not null specifies that the column cannot be empty. Primary Key is a combination of unique and not null constraint means the particular column should not contain same data and cannot have null values.

Question 20.
Write the name of any two ERP Packages.
Answer:
Oracle , SAP, Microsoft Dynamics , Odoo and Tally ERP(Any 2)

Question 21.
Write the name of any two mobile Operating System.
Answer:
Google Android, Apple iOS, Black berry OS and Microsoft Windows. (any 2)

Answer the following questions from 22 to 41. Each carries 3 scores. (20 × 3 = 60)

Question 22.
Identify and correct the errors in the following C++ statements, if any.
(a) cout<<75; ,
(b) cout>>”welcome”
(c) cin>>a<<b;
Answer:
a) No error
b) cout<<“Welcome”;
c) cin>>a>>b;

Question 23.
(a) What is string in C++?
(b) Name the input function used to accept string including white spaces.
(c) Name the header file required to use the above function.
Answer:
a) Combination of characters enclosed in double quotes. Eg. “BVM HSS”;
b) cin.get() / cin.getline() / gets().
c) iostream or cstdio

Question 24.
Compare call by value method and call by reference method.
Answer:

1. call by value
   In call by value method, a copy of the actual parameters are passed to the formal parameters. If the function makes any change it will not affect the original value.
2. call by reference
   In call by reference method, the reference of the actual parameters are passed to the formal parameters. If the function makes any change it will affect the original value.

Question 25.
List any three attribute of <MARQUEE>.
Answer:
Height, width, direction, behavior, scrolldelay, scrollamount, loop, bgcolor, hspace and vspace (Any
3)

Question 26.
What is the difference between static webpage and dynamic webpage?
Answer:

Static web pages	Dynamic web pages
Content and layout is fixed	Content and layout is changed frequently
Never use database	Data base is used
Run by browser	It runs on the server and result get back to the client(browser)
Easy to develop	Not at all easy

Question 27.
Write the basic structure of an HTML document.
Answer:
An HTML document consists of two sections head and body.

<html>
<head>
<title> Any title </title>
</head>
<body>
Contents are given here.
</body>
</html>

Question 28.
Compare client side scripting and server side scripting.
Answer:

Client Side Scripting	Server Side Scripting
Script is copied to client browser	to the web server
Executed by the client	Executed by the server and result is get back to the browser window
Used for Client level validation	Connect to the database in the server
It is possible to block by the user	Cannot possible
Client side scripts depends the type and version of the browser	It does not depend the type and version of the browser

Question 29.
Which tag is used to create ordered list in HTML? Write the two attribute of it.
Answer:
<ol> tag is used to create an ordered list. The two attributes are type and start.
Eg. <ol type=”a” start=”5″> ___________ </ol>

Question 30.
Write tag to create the following control using <INPUT> tag in HTML.
(a) Text Box
(b) Password
(C) Checkbox
Answer:
a) <input type=”text”>
b) <inputtype=”password”>
c) <input type=”checkbox”>

Question 31.
Write HTML code to create the following list.

Answer:

<html>
<head><title>List of Fruits</title></head>
<body bgcolor=’’red”>
<ol type=”1" start=”5">
<li>APPLE</li>
<li>MANGO</li>
<li>ORANGE</li>
</ol>
</body>
</html>

Question 32.
Write the three logical operators with example in JavaScript.
Answer:
Operators in JavaScript (Any 3)
Operators are the symbols used to perform an operation

1) Arithmetic operators
It is a binary operator. It is used to perform addition(+), subtraction(-), division(/), multiplication(*) ,modulus(%-gives the remainder) ,increment(++) and decrement-) operations.
Eg. If x= 10 and y=3 then

x+y	x-y	x*y	x/y	x%y
13	7	30	3.333	1

Ifx=10 then
document.write(++x); -> It prints 10+1=11
Ifx=10then
document.write(x++); -> It prints 10 itself.
If x=10then
document.write(—x); It prints 10-1=9
Ifx=10then,
document.write(x—);-> It prints 10 itself.

2) Assignment operators
If a=10 and b=3 then a=b. This statement sets the value of a and b are same ,i.e. it sets a to 3. It is also called short hands If X=10and Y=3 then

Arithmetic Assignment Expression	Equivalent Arithmetic Expression	The value of X becomes
X+=Y	X=X+Y	13
X-=Y	X=X-Y	7
X*=Y	X=X*Y	30
X/=Y	X=X/Y	3.333
X%=Y	X=X%Y	1

3) Relational(Comparison) operators
It is used to perform comparison or relational operation between two values and returns either true or false.
Eg:
If X=10 and Y=3then

X<Y	X<=Y	X>Y	X>=Y	X==Y	X!=Y
false	false	true	true	false	true

4) Logical operators
Here AND(&&), OR(||) are binary operators and NOT(!) is a unary operator. It is used to combine relational operations and it gives either true or false
If X=true and Y=false then

X&&X	X && Y	Y&&X	Y&& Y
true	false	False	false

Both operands must be true to get a true value in the case of AND(&&) operation
If X=true and Y=false then

X || X	X || Y	Y || X	Y || Y
true	true	true	false

Either one of the operands must be true to get a true value in the case of OR(||) operation
If X= true and Y=false then

!X	!Y
false	true

5) String addition operator(+)
This is also called concatenation operator. It joins (concatenates) two strings and forms a string.
Eg:
var x,y,z;
x= “BVM HSS“;
z=x+y;
* Here the variable z becomes “BVM HSS Kalparamba”.
Note : If both the operands are numbers then addition operator(+) produces number as a result otherwise it produces string as a result. Consider the following

Operand 1 data type	Operand 2 data type	Operation	Resultant data type
number	number	+(addition)	number
number	string		string
string	number		string
string	string		string

Eg:

1. 8(number) + 3(number)=11 (Result is a number)
2. 8 (number)+ “3”( string) = “83” (Result is a string)
3. “8” (string) + 3 (number) = “83”(Result is a string)
4. “8” (string) + “3” (string) = “83” (Result is a string) (Write any three)

Question 33.
Write the use of the following built-in function in JavaScript.
(a) charAt()
(b) toUpperCase()
(c) isNaN()
Answer:
a) It returns a character at the specified position.
Eg. charAt(0) returns the first character from the specified string.

b) It is used to convert the specified string to upper case.

c) It checks whether the given value is number or not. It returns a Boolean value means true or false. If the value is not a number it returns true value.

Question 34.
List the name of three types of webhosting.
Answer:
Shared hosting, Dedicated Hosting and Virtual Private Server hosting.

Question 35.
What is free hosting?
Answer:
The name implies it is free of cost service and the expense is meet by the advertisements. Some service providers allow limited facility such as limited storage space, .,do not allow multimedia(audio and, video) files.
A paid service website’s address is as follows eg: www.bvmhsskalparamba.com
Usually two types of free web hosting services as follows
1) as a directory service.
Service provider’s website address/ our website address
eg: www.facebook.com / bvm hss kalparambu

2) as a Sub domain
Our website address.service providers website address
eg: www.bvmhsskalparamba.facebook.com
Our website address.service providers website address
eg: www.bvmhsskalparamba.facebook.com
Earlier web hosting services are expensive but nowadays it is cheaper hence reduced the need for free web hosting.

Question 36.
Write the name of any three users of database.
Answer:
Database Administrator (DBA), Application Programmer, Sophisticated Users and Naive Users (Any 3)

Question 37.
Define the following terms in DBMS.
(a) Entity
(b) Tuple
(c) Attribute
Answer:
a) Entity – It is a person or a thing in the real world which is identifiable from others. Eg: Employee, student, etc.
b) Tuple: Rows in a table(relation)
c) Attribute: Columns in a table(relation)

Question 38.
Write three DDL Commands in SQL.
Answer:
Create, Alter and Drop(To remember use CAD)

Question 39.
Write the Syntax of SELECT Command in SQL.
Answer:
Syntax 1: select * from <table name> [where <condition>];- This command is used to display all the columns from the table.

Syntax 2: select <column name1> [,<column name2>…] from <table> [where <condition>]; – This command is used to display Specified columns from the table.

Question 40.
Write the name of any three functional units of ERP.
Answer:
Financial, Manufacturing, Production planning, HR, Inventory control, Purchasing, Marketing, Sales and Distribution and Quality Management(any 3)

Question 41.
Briefly explain the following mobile communication services.
(a) SMS
(b) GPS
(c) SmartCard
Answer:
a) SMS – Short Message Sending. By using this we can send messages upto 160 characters. The protocol used is Signaling system7(SS7).

b) Global Positioning System(GPS) : It is a space-based satellite navigation system that provides location and time information in all weather conditions, anywhere on or near the Earth where there is an unobstructed line of sight to four or more GPS satellites. The system provides critical capabilities to military, civil and commercial users around the world. It is maintained by the United States government and is freely accessible to anyone with a GPS receiver. GPS was created and realized by the U.S. Department of Defense (DoD) and was originally run with 24 satellites. It is used for vehicle navigation, aircraft navigation, ship navigation, oil exploration, Fishing, etc. GPS receivers are now integrated with mobile phones.

c) Smart Cards : A smart card is a plastic card with a computer chip or memory that stores and transacts data. A smart card (may be like your ATM card) reader used to store and transmit data. The advantages are it is secure, intelligent and convenient.
The smart card technology is used in SIM for GSM phones. A SIM card is used as an identification proof.

Answer any questions from 42 to 44. Each carry 5 scores. (3 × 5 = 15)

Question 42.
Briefly explain the tokens in C++.
Answer:
Token: It is the smallest individual units similar to a word in English or Malayalam language. C++ has 5 tokens
1) Keywords : These are reserved words for the compiler. We can’t use for any other purposes Eg: float is used to declare variable to store numbers with decimal point. We can’t use this for any other purpose

2) Identifier: These are user defined words. Eg: variable name, function name, class name, object name etc…

3) Literals (Constants): Its value does not change during execution

• Integer literals : Whole numbers without fractional parts are known as integer literals, its value does not change during execution. There are 3 types decimal, octal and hexadecimal.
  Eg. For decimal 100, 150, etc
  For octal 0100, 0240, etc
  For hexadecimal 0×100,0×1A, etc
• Float literals : A number with fractional parts and its value does not change during execution is called floating point literals.
  Eg. 3.14157,79.78,etc
• Character literal : A valid C++ character enclosed in single quotes, its value does not change during execution.
  Eg. ‘m’, ‘f’ etc
• String literal: One or more characters enclosed in double quotes is called string constant. A string is automatically appended by a null character(‘\0’)
  Eg. “Mary’s”,’’India”, etc
• Punctuators: In English or Malayalam language
  punctuation mark are used to increase the readability but here it is used to separate the tokens. Eg:{,},(,),………..
• Operators : These are symbols used to perform an operation(Arithmetic, relational, logical ,etc…)

Question 43.
What is the use of <table> tag? Briefly explain any four attribute of <table> tag.
Answer:

1. Border: It specifies the thickness of the border lines around the table
2. Bordercolor: It specifies the the colour for border lines
3. Align: It specifies the table alignment, the values can be left, right or center
4. Bgcolor: It specifies the back ground colour for the table.
5. Cellspacing: It specifies the space between two table cells
6. Cellpadding: It specifies the space between cell border and content
7. Cols: It specifies the number of columns
8. Width: It determines the table width
9. Frame: It specifies the border lines around the table, values are void, border, box, above, below,…

Question 44.
Explain any five advantages of DBMS.
Answer:
Advantages of DBMS over conventional files
Data Redundancy – It means duplication of data. DBMS eliminates redundancy. DBMS does not store more than one copy of the same data.

Inconsistency can be avoided – If redundancy occurs there is a chance to incbnsistency. If redundancy is removed then inconsistency cannot occur.

Efficient data access It stored huge amount of data efficiently and can be retrieved whenever a need arise. Data can be shared – The data stored in the database can be shared by the users or programs.

Standards can be enforced – The data in the database follows some standards. Eg: a field ‘Name’ should have 40 characters long. Some standards are ANSI, ISO, etc.

Security restrictions can be applied – The data is of great value so it must be kept secure and private. Data security means the protection of data against accidental or intentional disclosure or unauthorized destruction or modification by unauthorized person. Integrity can be maintained – It ensures that the data is to be entered in the database is correct. Crash recovery – Some times all or a portion of the data is lost when a system crashes . A good DBMS helps to recover data after the system crashed.

Reviewing Kerala Syllabus Plus Two Accountancy AFS Previous Year Question Papers and Answers Pdf March 2021 helps in understanding answer patterns.

Kerala Plus Two Accountancy AFS Previous Year Question Paper March 2021

Time: 2 Hours
Maximum Score: 60

Part – B
Analysis of Financial Statements

VII. Questions from 23 to 26 carry 1 score each. (4 × 1 = 4)

Question 23.
Debenture holders are:
(a) Owners of the company
(b) Creditors of the company
(c) Employees of the company
(d) Customers of the company
Answer:
(b) Creditors of the company

Question 24.
In a company’s Balance Sheet, Bills payable is shown under the head
(a) Current Liabilities
(b) Shareholders Fund
(c) Non-Current Liabilities
(d) Current Assets
Answer:
(a) Current Liabilities

Question 25.
The process of comparing various financial factors of a company over some time is known as
(a) Inter-firm comparison
(b) Ratio Analysis
(c) Intra-firm comparison
(d) Intra-industry comparison
Answer:
(c) Intra-firm comparison

Question 26.
Quick ratio is also known as
(a) Solvency Ratio
(b) Acid Test Ratio
(c) Working Capital Ratio
(d) Liquid Ratio
Answer:
(b) Acid Test Ratio

VIII. Questions from 27 to 29 carry 2 scores each. (3 × 2 = 6)

Question 27.
Write any two items that will appear under the head shareholder fund in a company’s Balance Sheet, as per Schedule III.
Answer:

• Share Capital
• Reserves and Surplus

Question 28.
A company issued 5,000 equity shares of Rs. 10 each with application money of Rs. 3. Application received for 6,000 shares. Excess apiplication money were refunded. Give Journal Entry for refund of excess application money.
Answer:

Question 29.
List any two objectives of Analysis of Financial Statements.
Answer:
Objectives of Analysis of Financial Statements
(a) To estimate the earning capacity of the firm.
(b) To estimate the financial position of the firm.

IX. Questions from 30 to 32 carry 3 scores each. (3 × 3 = 9)

Question 30.
Galaxy Ltd. purchased machinery costing Rs. 1,00,000 from Fair Deals Ltd. The company paid the price, by issue of equity shares of Rs.10 each at a premium of 25%. Pass necessary Journal Entries for above transactions in the books of Galaxy Ltd.
Answer:
Journal Entries in the book of Galaxy Ltd.

Question 31.
Fill the series with items taken from the bracket.
(Zero Coupon Bonds, Redeemable Debentures, Convertible Debenture)
(i) Debentures which are repayable on the expiry of a specified period ___________________
(ii) Debentures which are convertible into equity shares ___________________
(iii) Debentures do not carry a specific rate of interest ___________________
Answer:
(i) Redeemable debentures
(ii) Convertible debentures
(iii) Zero coupon bonds

Question 32.
List the 3 Objectives of Financial Statements.
Answer:
Objectives of Financial Statements:

• To provide information about the earning capacity of the business.
• To evaluate the effectiveness of management.
• To provide information about cash flows.
• To assist the users to make decisions.

X. Questions from 33 to 37 carry 4 scores each. (5 × 4 = 20)

Question 33.
Write any four uses of the share premium account.
Answer:

• To issue fully paid bonus shares to the Existing shareholders.
• To write off preliminary expenses of the company.
• To write off the expenses of, or commission paid on the issue of shares or debentures of the company.
• To pay the premium payable on the redemption of preference shares or debentures of the company.

Question 34.
Write a short note about any two of the following:
(i) Reserve Capital
(ii) Preference Share
(iii) Under Subscription
Answer:
(i) Reserve Capital: It is that portion of the uncalled capital which is kept in reserve and which will be called up only on the winding up of the company.
(ii) Preference Shares: These are shares with preferential right as to the payment of dividend and as to the repayment of capital at the time of winding up of the company.
(iii) Under Subscription: If the number of shares applied for is less than the number of shares offered to pthe ublic for issue, it is a case of under subscription.

Question 35.
List the main tools of Financial Statement Analysis and explain about one tool.
Answer:
Tools of Financial Statement Analysis

• Comparative statements
• Common size statements
• Trend analysis
• Ratio Analysis
• Cash flow Analysis

1. Comparative Statements:
Statements prepared in a form that reflect financial data for two or more periods or firms are known as comparative statements. It can be prepared for the balance sheet as well as the profit and loss account. Comparative statements have two parts:

• Comparative Statement of Profit or Loss
• Comparative Balance Sheet

Question 36.
From the following information, calculate inventory turnover ratio:
Revenue from operations – Rs. 1,00,000
Cost of revenue from operation – Rs. 80,000
Inventory at the beginning – Rs. 40,000
Inventory at the end – Rs. 30,000
Answer:
Inventory Turnover Ratio = \(\frac{Cost of revenue from operation}{Average Inventory}\)
Average Inventory = \(\frac{\text { Opening inventory }+ \text { Closing inventory }}{2}\)
= \(\frac{40000+30000}{2}\)
= 35,000
Inventory turn over ratio = \(\frac{80,000}{35,000}\) = 2.285 times

Question 37.
Classify the following into cash from Operating Activities, Investing Activities, Financing Activities.
(i) Cash payment to suppliers.
(ii) Cash proceedings from issue of debentures.
(iii) Cash proceedings from disposal of assets.
(iv) Salaries paid to employees.
Answer:

Operating Activities	Investing Activities	Financing Activities
1. Cash payment to suppliers	1. Cash proceedings from issue of debentures	1. Cash proceedings from disposal of assets
2. Salaries paid to employees

XI. Questions from 38 to 42 carry 5 scores each. (5 × 5 = 25)

Question 38.
Match the following:

A	B
A. Issue of shares above the face value.	1. Forfeiture of shares
B. Issue of shares below the face value.	2. Value
C. Cancellation of shares.	3. Reserve Capital.
D. Demand for payment.	4. Issue of shares at premium.
E. Uncalled capital.	5. Issue of shares at discount.

Answer:

A	B
Issue of shares above the face value.	Issue of shares at premium.
Issue of shares below the face value.	Issue of shares at discount.
Cancellation of Shares.	Forfeiture of Shares.
Demand for Payment.	Value
Uncalled Capital	Reserve Capital

Question 39.
Explain briefly the different classifications of Share Capital.
Answer:
Share capital of a company means the capital contributed by the issue of shares by a company.
Different kinds of share capital are the following.

• Authorised, Registered or Nominal Capital: It is the maximum amount of capital for which a company is authorised to issue shares. It is the maximum amount that can be raised by a company by issuing shares.
• Issued Capital: Issued capital is the amount of capital for which shares are issued by the company.
• Subscribed Capital: Subscribed capital is that part of issued capital for which shares are subscribed or taken by the public.
• Called-up Capital: It is that part of subscribed capital demanded by the company from the shareholders. That portion of subscribed capital which is not called (demanded) by the company is known as uncalled capital.
• Paid-up Capital: It is that portion of called-up capital which is actually paid by the share holders. The unpaid part of called-up capital is known as calls in arrears.
• Reserve Capital: That portion of uncalled capital, which is reserved by the company to be called only at the time of its winding up is termed as reserve capital. It is reserved to win confidence among the creditors.
• Unreserved Capital: It is that portion of uncalled capital which can be called by the company at any time.

Question 40.
The following information related to Star Ltd. for the year 2019 and 2020. Prepare Comparative Statement.

Particulars	2019	2020
Revenue from operations	1,60,000	2,00,000
Expenses	80,000	1,00,000
Other Income	20,000	10,000
Income tax	50%	50%

Answer:
Comparative Statement of Profit and Loss for the year ended 2019 and 2020

Question 41.
From the following information calculate:
(a) Current Ratio
(b) Quick Ratio
Total CurrentAssets – Rs. 35,000
Total Current Liabilities – Rs. 17,500
Inventories – Rs. 10,000
Answer:
(a) Current Ratio = \(\frac{Current Assets}{Current Liabilities}\)
= \(\frac{35,000}{17,500}\)
= 2 times or 2 : 1

(b) Quick Ratio = \(\frac{Quick Assets}{Current Liabilities}\)
Quick Assets = Current Assets – Inventory
= 35,000 – 10,000
= 25,000
Quick Ratio = \(\frac{25,000}{17,500}\)
= 1.43 times or 1.43 : 1

Question 42.
Write any five features of a Joint Stock Company.
Answer:
Features of Joint Stock Company

• Separate Legal Entity
• Limited Liability
• Perpetual Succession
• Common Seal
• Body Corporate
• Artificial Person

XII. Questions from 43 to 44 carry 8 scores each. (5 × 4 = 20)

Question 43.
Resmi Mills Ltd. invited application for 20,000 equity shares of Rs. 10 each, payable as
Rs. 4 per share on application
Rs. 3 per share on allotment
Rs. 2 per share on first call
Rs. 1 per share on second and final call
Applications were received for 25,000 equity shares. Excess applications were rejected. Company made all the calls and the money due was collected. Give Journal Entries in the books of the company.
Answer:
Journal Entries

Question 44.
Write the difference between Shares and Debentures.
Answer:

Shares	Debentures
1. Share is a part of owned capital.	1. Debenture is a part of loan or borrowed capital.
2. Dividend is paid on a share.	2. Interest is paid on debentures.
3. Shareholder is a proprietor.	3. Debenture holder is a creditor.
4. A share is unsecured.	4. Debentures are generally secured.
5. Shareholder enjoys voting right.	5. Debenture holder does not enjoy voting right.
6. Shareholder gets dividend only if there is a profit.	6. The debenture holder gets interest whether the company makes profit or not.

Teachers recommend solving Kerala Syllabus Plus Two Political Science Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.

Kerala Plus Two Political Science Board Model Paper 2021 with Answers.

Answer the following questions from 1 to 45 upto a maximum score of 80. Questions 1 to 14. answer for 22 scores.

Question 1.
Who was the first Election Commissioner of India?
a) Jawaharlal Nehru
b) T.N. Seshan
c) G.V. Mavalankar
d) SukumarSen
Answer:
d) SukumarSen

Question 2.
What was the major slogan raised by the opposition parties during 1977 Lok Sabha election?
a) Save Democracy
b) Garibi Hatao
c) Jai Jawan Jai Kissan
d) Non-Congressism
Answer:
d) Non-Congressism

Question 3.
Which of the following popular movement used hug¬ging trees as a method of Agitation? (1)
a) Narmada BachaoAndolan
b) Chipko Movement
c) Bharatiya Kissan Union
d) Dalit Panthers
Answer:
b) Chipko Movement

Question 4.
Medha Patkar is associated with ____ popular movement.
a) Anti-Arrack Movement
b) National Fish Workers Forum
c) Narmada BachaoAndolan
d) Chengara land Struggle
Answer:
c) Narmada BachaoAndolan

Question 5.
Who among the following was a leader of Mizo-Na- tional Front?
a) Angami Zapu Phizo
b) Lai Denga
c) Rajiv Gandhi
d) Kazi Lhendup Dorji
Answer:
b) Lai Denga

Question 6.
Expand the following:
AASU
Answer:
All Assam Students Union

Question 7.
Which country adopted an “Open Door Policy”? (1)
a) European Union
b) China
c) America
d) Japan
Answer:
b) China

Question 8.
First Earth Summit was held at (1)
a) Rio-de-Janeiro
b) London
c) Paris
d) New York
Answer:
a) Rio-de-Janeiro

Question 9.
Answer the following questions:
a) Write the name of paramilitary force of Hyderabad Nizam.
b) Who is known as Frontier Gandhi? (2)
Answer:
A. Razakar
B. GhanAbdul Gafarkhan

Question 10.
What are the models of development before India at the time of independence?
Answer:
Capitalist Model and Socialist Model

Question 11.
Write the name of any four SAARC member countries. (2)
Answer:
India, Nepal, Bhutan, Pakistan

Question 12.
Some of the popular movements in India are given below. Pick out the suitable places from the bracket and match them correctly. (2)
a) Bharatiya Kissan Union
b) Chipko Movement
Answer:
A. Bharatiya Kisan Union – Meerut
B. Chipko Movement – Utharkhan

Question 13.
Name the leader who signed the Punjab Accord?(2)
a) Rajiv Gandhi and Laldanga
b) Angami Zapu Phizo and Kazl Lhendup Dorji
c) Indira Gandhi and Bhindranwala
d) Rajiv Gandhi and Harchand Singh Longowal
Answer:
D. Rajiv Gandhi and harchand Sing h Longowal

Question 14.
Match the following :

A	B
Russia	Transition Model
Shock Therapy	Successor of USSR
Mikhail Gorbachev	Currency of USSR
Ruble	Perestroika

Answer:

A	B
Russia	Successor of USSR
Shock Therapy	Transition Model
Mikhail Gorbachev	Perestroika
Ruble	Currency of USSR

Questions from 15 to 24 carries 3 scores each. (10 × 3 = 30)

Question 15.
Explain “Two Nation Theory”. Who put forward this theory?
Answer:
The division of India was carried out on the basis of the Two-Nation Theory put forward by the Muslim
League. According to that theory, in India there were two nations – the Hindus and Muslims. Therefore, the League demanded a separate state, Pakistan for Muslims.

Question 16.
First three General Elections marked the features of Congrass dominance. What are the factors that con-tributed to the dominance of Congress Party?
Answer:

1. Congress had led Independence struggle, that legacy helped them in the dominance of congress in the general elections.
2. Congress was the only party which had strong organisational structure and network all over India.
3. Charismatic Leadership of Nehru and others.

Question 17.
Write down three major objectives of Jawaharlal Nehru’s foreign policy.
Answer:

1. Protect territorial integrity and sovereignty of the coun try.
2. Promote rapid economic development.
3. Opposition to imperialism, colonialism and racism.

Question 18.
India is against nuclear proliferation, but India did not sign NPT and CTBT. Give reasons.
Answer:
India is against of atomic weapons for war like purposes. India stood for complete diarmament within the framework of United Nations. At the same time, refuses to sign NPT, and CTBT because it is discriminatory. India was against the stand of nuclear powers to accumilate nuclear weapons in their workshops and deny the same right to underdeveloped or third world countries.

Question 19.
Discuss the two major reasons which lead to the split of Congress Party in 1969.
Answer:

1. In 1969 there arose a difference between Indira Gandhi and the syndicate.
2. When Dr. Zakir Hussain died, the Presidential post was vacant. The Syndicate nominated Sanjiva Reddy to the post. But Indira Gandhi proposed V.V.Giri as the President. The failure of the official candidate of the congress caused the formal division of Congress.
3. In 1969, the Congress led by the Syndicate was known as Congress (O) and the group was led by Indira Gandhi was called Congress (R).

Question 20.
Explain the reasons for the failure of Janata Govern-ment
Answer:
Janata party was the product of the National Emergency. As a coalition of different political parties, it had not a common vision and a goal. It proved to be a failure to making basic changes in the country. The completion and conflicts among leaders was yet another failure of the party

Question 21.
Write a short note 6n “Chipko Movement”.
Answer:
Chipko movement was started in 1923 in two or three villagers of Uttarkhand. The forest department prevented the villagers from using the forest but gave permission to a sports company to cut down such trees for commercial purposes. This provoked the villagers, when the workers came to cut the trees, the villagers stood near the trees embracing thetn. This protest spread to many parts of Uttarkhand. As a result of this movement, government issued an order prohibiting the cutting down of trees in that region. Along with women and children, Sundar Lai Bahuguna, and Chandiprasad Bhatt were its leaders.

Question 22.
Kashmir issue is not just a dispute between India and Pakistan. It has also internal and external di-mensions. – Discuss.
Answer:
The politics of Jammu and Kashmir always remained controversial and conflict ridden both for external and internal reasons. Externally, Pakistan has always claimed that Kashmir valley should be part of Pakistan. Internally, there is a dispute about the status of Kashmir within the Indian union. Recently Central Government withdrawned the special provision of Kashmir under Article 370, and divided Kashmir into two union territories.

Question 23.
Write a short note on “Cubian Missile Crisis”.
Answer:
Cuba was a small country, situated very close to United States of America. A big power like America, could not easily tolerate a neighbouring country becoming a close ally of communist Russia. As Cuba got financial and military support from Russia, it became a strong country, although it was small in size. In 1962, the Russian leader Khrushchev wanted to deploy missiles and other armaments in Cuba. America sent its warships towards Cuba. This incident was known as Cuban Missile Crisis’.

Question 24.
Point out the consequences of shock therapy.
Answer:

1. Many big industries under government control were collapsed.
2. The Russian currency, Rouble was devalued.
3. GDP was diminished.
4. Because of inflation people lost the value of their savings.
5. Social welfare schemes were abandoned.
6. As subsidies were withdrawn, many people experienced poverty.

Questions from 25 to 33 carry 4 scores each. (9 × 4 = 36)

Question 25.
Explain the challenge of establishing democracy in independent in India.
Answer:
Establishing Democratic system was one of the major challenge in independent I ndia. Free and fair elections were the methods to establish democratic system. The first election was called the greatest
gamble in history by foreign media. A British member of the civil service was said that the future generations would condemn this democratic process as a foolish enterprise. But India succeeded in conducting a free and fair election and we are successful in our democratic experiment.

Question 26.
Briefly explain the nuclear policy of India.
Answer:

1. India’s nuclear programme was initiated under the guidance of Homi J Bhabha.
2. India conducted nuclear explotions in 1974 and 1988.
3. But India is against testing of atomic weapons for war like purposes. India stands for complete disarmament within the framework of UN.
4. India refuses to sign NPT, CTBT, because it is discriminatory.
5. India stood for no first use of nuclear energy.
6. India stands for non-discriminatory nuclear disarmament.

Question 27.
Find out the major consequences of the National emergency of 1975.
Answer:
a) Protest and agitations of government employees were banned.
b) Media was strictly controlled. The media could publish only things the government approved. Many journalists were under preventive detention.
c) Fundamental Rights of the citizens were suspended. Even the courts could not enforce Article 32.
d) Many of the opposition leaders were arrested and kept in jail. The provision of preventive detention was widely used.

Question 28.
“Anti-Arrack movement is not only a movement for banning liquor but also a movement for women empowerment.” Discuss.
Answer:
In 1990’s the women in Nellur district of Andra Pradesh started an agitation against the alcoholism of that region. The habit of drinking arrack created a lot of social-economic issues. The women in Nellur forced a wine shop to close down. The news spread like wild fire into more than 5000 villages. They held meetings and passed resolutions and sent them to the authorities. The protest in Nellur spread to the rest of the state and it would become a success.

Question 29.
What are the main provisions of Punjab Accord and how far the agreement succeeded in solving Punjab crisis?
Answer:
After the 1984, general election, Rajiv Gandhi became the PM. He started talks with the Akali Dal leaders. In 1985, he signed an accord with the Akali leader Harchand Singh Longowal. This is known as Punjab Accord or the Rajiv-Gandhi Longowal Accord. This helped to bring about normalcy in Punjab. The conditions of the Accord are:

1. Handover Chandigarh to Punjab.
2. Appoint a new commission to solve the border disputes between Punjab and Haryana.
3. Establish a Tribunal to share the waters of Ravi, Beas with Haryana, and Rajastan.
4. Compensation will be given to damages related with operation Blue star. Even with all these, normalcy did not return immediately. He took nearly 10 years for things to become normal.

Question 30.
List out the features of Shock Therapy.
Answer:
The failure of Sovet Union made many of its constituent countries abandon communism and follow capitalist ways. Russia, the Satellite countries of Soviety Union from Eastern Europe were attracted towards organisations, in the World Bank and IMF.

1. The main purpose of Shok Terapy was to make communist countries to follow capitalist model.
2. Private capital would be promoted. ..
3. Cooperative farming will give way to private farming.
4. Foreign investment, open market system were promoted.
5. All economic regulations were excluded.

Results

1. Many big industries under government control collapsed.
2. Russian currency Rouble was devalued.
3. Because of inflation people lost the value of their savings.
4. Famines, poverty and unemployment was prevalent.
5. The social welfare schemes were abandoned.
6. As subsidies were withdrawn, many people experienced poverty.

Question 31.
What is the conceptual difference between traditional and non-traditional security?
Answer:
Security implies freedom from threats. There were two aspects of security. They are traditional security and non-traditional security. In the traditional conception of security, the greatest danger to a country is from military threats. There are two traditional notions of security. They are internal and external.

Non-traditional notions of security go beyond military threats to include a wide range of threats and dangers affecting the conditions of human existence. Non- traditional views of security have been called ‘human security’ or ‘global security’. Human security implies the security of human beings than countries and global security implies the security of world.

Question 32.
List out different programmes adopted by India for environmental protection.
Answer:

1. For the protection of environment India has taken the following steps.
2. According to the auto fuel policy of India, only purified fuel is used for vehicles.
3. The Energy Act passed in 2001, aims at the appropriate use of energy.
4. The 2003 Electricity Act requires the use of renewable energy sources.
5. In 2011-12 the Bio-diesel Mission started production of biodiesel.
6. ecently schemes have been worked out for the import of natural gas. It has been decided to use the latest technology for purifying coal. Thus India is doing a lot for environmental protection.

Question 33.
What are the political consequences of globalisation?
Answer:
Politically speaking, the authority of the government gets weaker. It will have to reduce its welfare schemes, instead of promoting it. With the coming of MNC’s it becomes difficult for the governments to take independent decisions.

According to the advocates of globalisation, no political power of the government is lost. Since technology has advanced so much, governments can do a lot. Technology helps governments to know the details of its citizens and make the administration efficient.

Questions from 34 to 41 carry 5 scores each. (8 × 5 = 40)

Question 34.
Write a brief note on the challenges to nation building process in India.
Answer:
Independent India faced three kinds of challenges,
a) Integrating India
b) Ensuring the welfare of the people and development
c) Establish the democratic system

a) Integrating India:
When India got freedom, it had more than 500 Princely States. The rulers of these places wanted to get back their sovereignty when the British left. The government approached the Princely States keeping three things in mind.

a) The majority of people of the Princely States wanted to join Indian Union.
b) Giving some kind of self-rule to some Princely States.
c) In the background of the division, we needed States with precision.

Integration:
Except Junagarh, Hyderabad. Kashmir and Manipur, all the Princely States signed in the Instrument of Accession and joined the Indian Union. Then through a referendum, Junagarh joined Indian Union. Because of popular uprising in Hyderabad against the Nizam, the Indian army took some action and got Hyderabad also into the Union. The Congress Group in Manipur wanted to join the Union, but other parties objected. However, the Manipur king was persuaded and he too joined the Union. Kashmir King also signed the Instruction of Accession to save himself from the attacks of Pakistan and thus Kashmir too became part of India.

The division of the country into States on linguistic basis showed that it could accommodate all the diversities. The people can accept the diversities and live in unity. This is the strength of a country. The Telungana protest and the martyrdom of Potti ” Sriramulu should be remembered here.

Ensuring the welfare of people:
India was a poor country. The country has included provisions in the Constitution to ensure protection to the socially backward people, to religious and cultural minorities and to give all the people equality. Through Directive Principles, the Constitution shows us the way to eradicate poverty and to make the marginalized people come into the mainstream society.

Five Year Plans:
The country has a development model based on socialist principles. We have adopted a mixed economy accommodating both public and private sector enterprises. Establishing democratic system: Democracy was a discovery of foreigners. But the big thing was that we chose democracy in spite of the fact that India is a poor country and there are many illiterates here. The first election was called the greatest gamble in history by foreign media. A British member of the Civil Service said that the future generations would condemn this democratic process as a foolish enterprise. The first Election Commission wasformed with Dr. Sukumar Sen as the Commissioner.

Illiterate Indians were supposed to think in terms of caste and creed. But by making a voters’ list based on our secular system and equality, we succeeded in conducting a fair election and we were successful in our democratic experiment Even after 70 years of Independence, we still face some challenges to our democracy. There are new demands for regional autonomy. There is the Maoist threat. There is intolerance, following the integration of Manipur. There is the Kashmir problem. In spite of all these we have been able to maintain our democratic tradition. After the 1975 Emergency, our rulers have been able to maintain the democratic order without any interruption.

Question 35.
Briefly explain Congress party as a social and ideological coalition.
Answer:
The success of congress was mainly for its social and ideological nature. Different social sections of the people were included in congress such as industrialists, farmers, labourers, city-dwellers, capitalists etc. Thus it became a party representing people at different-levels, religions and languages. Because of the representation of different groups, it became a coalition of different ideologies. It included moderates, extremists, radicals, and people of the left right ideologies. The social and ideological nature of congress helped its success in the first three general elections.

Question 36.
Write the major reasons of 1962 war between India and China.
Answer:

1. Swathantra party was formed in August 1959.
2. C.Rajagopalachari, K.M.Munshi, Meenu Massani were its prominent leaders.
3. Swathantra party opposed centralised planning, state intervention, public sector, etc.
4. They stood for individual freedom and . privatisation.
5. They were against the policy of non-alignment and progressive tax regime.
6. Most of the ideologies of Swathantra party are in favour of capitalist system and they wanted to make India a capitalist country.

Question 37.
Write the major reasons of I 962 war between India and China.
Answer:
The main reasons of Indo-China war in 1962 were boundary disputes and Tibetan issue. The main dispute was about the boundary of the West and East. China claimed the Ladakh Region of Jammu and Kashmirand many areas of Arunachal Pradesh. Between 1957-59, the Chinese occupied the Akasai-chin sector and built the Karakorum Highway.

The second issue was Tibet. In 1950, China annexed Tibet. China imposed their culture on the Tibetans. In 1959, the Dalai Lama, the spiritual leader of the Tibetans, sought refuge in India. In October 1962, the Chinese army occupied some important places of Arunachal Pradesh. The Indian army stopped the Chinese on the western side of Ladakh. Then they announced a unilateral ceasefire and retreated from the occupied land Sometimes DODular movements were aaainst the democratic process and development of the country.

Question 38.
“Popular Movements hinder democratic process and development.” Discuss.
Answer:

1. Protests, dharnas and rallies prevent governments from smooth functioning.
2. Most moverments were for or against a particular issue. Thus these movements get the support of only some particular groups of people.
3. For democratic policies, there is a need for broad fellowships and unity. But such broad fellowship is not seen in most of these movements.
4. These movements can work only for limited objectives. Often there were clashes between these movements and political parties.

Question 39.
Explain any two major issues of North East.
Answer:
The North-Eastern States have some geographical peculiarities. It was a region that was not closely linked to the rest of the country. It has long international orders, but communications facilities were less there. Its development was neglected to an extent and the problem was made complex by the emigrants that came from other places. In this complex situation, some complex demands were made:

1) Demand for Autonomy :
At the time of independence, except Manipur and Tripura, the entire North-Eastern region was just one State. After independence, the non-Assamese felt that. Assamese language was imposed on them. Therefore they demanded political self-rule. The Adivasi leaders wanted to keep away from Assam. They formed “Eastern India Tribal Union”., Later it was known as “All Party Hill Leaders Conference”. They demanded one Adivasi State, but more Adivasi States like Meghalaya and Mizoram were formed. Even with this, their demand for self-rule did not end. The Bodos, Karbis and Dimasas etc. demanded their own States. The same area was demanded by more than one community. Because of that the only solution was forming tiny States. Some stayed in Assam and gained their right for self-rule. The Karbis and Dimasas were given self-rule at the District level. The Bodos were given their self¬rule council very’recently.

2) SECESSIONIST MOVEMENT:
MIZORAM: India faced demands for secession from two North-Eastern States – Mizoram and Nagaland. After independence, Mizoram region within Assam itself was enjoying self-rule. But many of them thought that they were not part of British India and so there was no reason for them to join India. In 1959 there was a serious famine in the Mizo Hills. But the Assam government could not take appropriate measures to help the suffering people there. This caused the formation of Mizo National Front (MNF) under the leadership of Lai Denga. From 1966, they started an armed struggle to get freedom.

Pakistan aided them and gave them refuge in Eastern Pakistan. In the conflict many ordinary people were killed. This made the local people very angry. In spite of the 20-year long resistance, no party made any gain. Then they had a rethinking. The exiled Lai Denga returned from Pakistan and started talks with Indian authorities. In 1986, a peace accord was signed between him and Rajiv Gandhi. Mizoram thus became a State with some special rights. MNF gave up their resistance.

Question 40.
Towards the end of 1980s, India witnessed several political developments that determined the future of the Indian politics. Explain.
Answer:
a) In 1989, Congress lost the election. With that election the ‘Congress System’ ended.

b) Mandal issue in national politics: In the 1990s,the government decided to implement the job reservations recommended by the Mandal Commission. Reservations were also made for Other Backward Classes. This resulted in a move against the Mandal Commission throughout the country.

c) The economic policy changed according to the change in the government. A new economic policy was implemented in the name of Structural Adjustment.

d) In 1992, the Babri Masjid was demolished as a result of many things. It was an incident that threatened the unity and integration of the country. It happened because of the coming of BJP with its Hindutva agenda.

e) The Murder of Rajiv Gandhi (1991): This brought changes in the leadership of Congress. In the next election, Congress won the maximum seats.

Question 41.
List out the principal organs of the UN. Briefly explain any two.
Answer:
The UNO was formed in 24th October 1945 to promote International peace and security. The major organs of United Nations Organisation were

1. General Assembly
2. Security Council
3. Secretariate
4. International Court of Justice
5. Economic and Social Council
6. Trusteeship Council

1) General Assembly:
When all the members of the UN meet together it is called the World Parliament. Each country can send 5 representative in the General Assembly. But each country has only one vote. Once every year the General Assembly will meet.

2) Security Council:
Security council is the executive council of UN. It has 15 members, 10 temporary members and 5 permanent members. USA, UK, USSR, France, China were the permanent members of UN has veto power. The main concern of UN Security Council was international peace and security.

Questions from 42 to 45 carry 8 scores each (4 × 8 = 32)

Question 42.
Explain the process of partition of India and examine its consequences.
Answer:
The division of India was carried out on the basis of the Two-Nation Theory put forward by the Muslim League. According to that theory, in India there were two nations – the Hindus and Muslims. Therefore, the Muslim League demanded a seperate nation, Pakistan for the Muslims. There were four major issues in the process of the partition of India.

First of all in British India, there was not a single area which had only Muslims.There were two areas in which the majority was Muslims, one in the west and the other other in the East. Therefore Pakistan was formed consisting of two areas – West Pakistan and East Pakistan. Between them there were large areas of Indian territory.

1. Secondly, not all areas with majority Muslim of population wanted to become part of Pakistan, – Khan Abdul Gaffar Khan, who was the leader of the North Western Province, had objected to the Two-Nation Theory. But ignoring his objection, the north west province was included in Pakistan.
2. Third problem was that British India’s Pubjab and Bengal were areas with Muslim majority. But in these provinces there were very many non- muslims.
3. The fourth issue regarding partition was the minorities lived in the both sides of the boundary of two countries. When the division was decided upon, there was large scale violence against the minorities in both the countries.

Consequences

1. The division of British India in 1947 into India and Pakistan was a very tragic incident in history. In the border areas many people in both sides were killed because of their religion and caste.
2. The cities like Lahore, Amritsar, Calcutta became religious areas. Muslims avoided going to areas of Hindus and Sikhs. Similarly Hindus and Sikhs did not want to go near the Muslim areas.
3. People migrated from one place to other, but during the journey many were attacked and killed, women were brutally raped. In homes, women were killed by their own relatives in the name of honour.
4. Not only the land, but even movable properties like tables and chairs were divided. The government and railway workers were divided. The writers were described it as ‘division of hearts’.

Question 43.
The declaration of emergancy in 1975 affected normal life of people in various ways. Explain the major causes of emergency.
Answer:
On June 25 1975, the President, on the advice of Prime Minister Indira Gandhi declared Emergency.
The main reasons behind the declaration of emergency are following.
a) Economic Reasons
b) Gujarat and Bihar Movements
c) Dispute with the Judiciary
d) Allahabad HC Verdict and popular movements
e) Protest from opposition

a) Economic Reasons: The main slogan in the 1971 election was ‘Garibi Hatao’. But when the government came to power it could not improve the economic condition of the country. There were a number of reasons for that.

First of all there was a refugee problem. Secondly, after the war, America stopped its aid to India. Thirdly there was a sharp increase in oil prices. The fourth reason was inflation which made the life of ordinary people very difficult. The fifth problem was negative growth in industrial output. Sixthly the salaries of government employees had to be reduced or even stopped. Seventhly, lack of rain caused serious shortfall in foodstuff. All the above things created an economic crisis in the country.

b) Gujarat and Bihar Movement:
The second biggest problem was the students’ protest in Gujarat and Bihar which were congress led states. The main reason was the increase in the unemployment and corruption made the students angry. In both these states the opposition parties supported the students. In Gujarat, Presidential Rule was imposed. In June 1975, because of heavy pressure from various sources, election was conducted and congress lost in the election.

In Bihar the students invited Jay Prakash Narayan to lead their protest. He accepted the invitation insisting that the protest must be non-violent. He asked for the dismissal of the Bihar government. He argued that there was’ a need for a revolution in social, economic and political spheres. In the meantime the railway workers also went on a strike. In 1975 Jay
Prakash Narayan orgnaised a march to the parliament. The opposition saw in him an alternative to Indira Gandhi.

c) Dispute with the Judiciary : Another reason for the declaration of Emergency was Indira Gandhi’s dispute with the judiciary. The Supreme Court said that some of the things the government did were against the constitution. The dispute was mainly in three things. Firstly, can the Parliament change the fundamental rights? Secondly can the Parliament change ownership of land. Thirdly the Parliament said that it had the right to reduce fundamental rights. Parliament amended the constitution, but Supreme Court objected. All these were the reasons for the dispute between the Government and Judiciary.

d) Allahabad High Court Verdict: On 12 June Justice J.L.Sinha of the Allahabad High Court passed a judgement declaring Indira Gandhi’s election to the Lok Sabha invalid. This order came on an election petition filed by Raj Narain, a socialist leader and a candidate who had contested against her in 1971. The petition challenged the election of Indira Gandhi on the ground that she had used the services of government servants in her election campaign. But later Supreme Court granted her a partial stay on the High Court order, that she could remain as MP but could not take part in the proceedings of Lok Sabha.

e) Protest from opposition: The opposition parties started widespread protest under the leadership of Jayaprakash Narayan pressed for Indira Gandhi’s resignation. They announced nation wide Satyagraha and asked the army, police and government employees not to obey immoral orders. The political mood of the country had turned against the congress.

Question 44.
Describe the reasons behind the disintegration of Soviet Union.
Hints :
• Political causes
• Economic causes
• Growth of Nationalism
• Gorbachev and Disintegration
Answer:
There are many reasons for the disintegration of USSR. Theyare
a) Political Reasons

1. In Soviet system there was bureaucratic misrule and misuse of authority.
2. The control exercised by the Soviet government on its citizens made their life difficult.
3. Therewas no freedom of expression ordemocracy. The party refused to give people their rights.
4. Communist party strictly controlled them and reforms were not possible.
5. Soviet Union was a confederation of 15 Republics. Russia dominated the other Republics and the people of the other Republics were either ignored or suppressed.

b) Economic Reasons
Although the Soviet Union was able to maintain its equality with the US in arms race. It was very costly for them. Western technology was better than Russian Technology. The political and economic needs of the soviet people were not taken care of the Soviet government. Soviet union used most of its resources to develop atomic weapons.

The Reforms of Gorbachev
Th reforms of the Gorbacheve like Glasnost and perestroika were the sudden reasons for the disintegration of Soviet Union. Glasnost means openness and Perestroika means re-structuring. These reforms did not bring the expected results. They brought more troubles to the country leading to its disintegration.

Consequences
End of cold war
Disintegration of Soviet Union was the end of cold war and bi-polar polity. It was also the end of power- block rivalry and arms race. The world became unipolar in nature nad the hegemony of US became a reality.

Change in power relations
After the second world war, there were two power blocks competing each other. They are the capitalist block led by USA and the socialist blocks led by USSR. But the disintegration resulted a change in the existing power system.

Emergence of new countries
As a result of the disintegration, there were many new countries emerged and others disappeared. The mighty confederation USSR became fragmented into 15 independent Republics. Like some of the satellite countries of USSR in the eastern European region were divided and that resulted in the formation of new countries.

Question 45.
The American Hegemony has military, economic and cultural dimensions. Describe three different aspects of U.S. Hegemony.
Answer:
World nations try to gain and maintain dominance over others by using military, economic and cultural power. During the Cold War the fight was between the Soviet Union and America. With the disintegration of the Soviet, Union America remains the only Superpower. Dominance or hegemony is attained through three things:

a) Hard Power
b) Structural Power
c) Soft Power

Hard Power: This includes military power and the relations between nations. Today America is in the forefront of military power. There is nobody to challenge its military might. It has the capacity to reach any corner of the world any moment. They spend a major part of their budget to maintain this position. They spend huge sums of money for research and technological developments. It is technology that keeps America in the forefront. With their military might they are even ready to police the world, and punish the culprits.

STRUCTURAL POWER: This dominance is based on the economic structure. The global economic system relies on America. If America helps the global economic system, it is mainly for their benefits and profits. But America does a lot of good things for the world. For example, communication channels through the oceans. Merchant ships travel through sea routes and America has much authority on the water transport system. It is the American navy that keeps the sea-routes safe for ships.

The next is the Internet. In fact it was an American military project. It was started in 1950. Today the global network functions using satellites. Most of them belong to America. 28% of the world economy is controlled by America. 15% of the international trade is also done by them. In any economic sector, at least one of out of three biggest companies will be American. The world economic structure follows the Breton Woods style of America. The World Bank, I.M.F. and World Trade Organization etc. are examples of American supremacy in world business and finance.

Now comes another example – the MBA degree. It was America that made this course and the degree so popular. It was Americans who discovered that business is a profession that could be taught. The ” first Business School was established in Pennsylvania in 1881. Its name was Wharton School. Today in all countries MBA has become a prestigious degree.

Soft Power: This is the ideological and cultural dominance. America has become the model for all other nations and they try to copy America. In weak countries, America is able to make the people like its culture. We all speak highly of the American life style and personal success. America is number one in the world. By using ‘soft power, and not force, America is able to achieve this dominance over the world.

Reviewing Kerala Syllabus Plus Two Accountancy AFS Previous Year Question Papers and Answers Pdf March 2022 helps in understanding answer patterns.

Kerala Plus Two Accountancy AFS Previous Year Question Paper March 2022

Time: 2 Hours
Maximum Score: 60

Section – II
Analysis of Financial Statements (40 Scores)

Part – VI

A. Answer any four questions from 25 to 30. Each carries 1 score. (4 × 1 = 4)

Question 25.
Which of the following is not a feature of a company?
(a) Body corporate
(b) Separate legal entity
(c) Unlimited Liability
(d) Perpetual succession
Answer:
(c) Unlimited Liability

Question 26.
A company issued 10000 equity shares of Rs. 10 each to the public and they received applications for 15000 equity shares. This situation is called ___________________
(a) Minimum Subscription
(b) Over Subscription
(c) Under Subscription
(d) None of these
Answer:
(b) Over Subscription

Question 27.
Shares of a public company are ___________________
(a) Not freely transferable
(b) Freely transferable
(c) Transferable with the consent of other members
(d) None of these
Answer:
(b) Freely transferable

Question 28.
Debentures which have created a charge on the assets of the company are called ___________________
(a) Secured Debentures
(b) Unsecured Debentures
(c) Redeemable Debentures
(d) Convertible Debentures
Answer:
(a) Secured Debentures

Question 29.
Commonsize analysis is also known as ___________________
(a) Horizontal
(b) Vertical Analysis
(c) Normal
(d) None of these
Answer:
(b) Vertical Analysis

Question 30.
Balance Sheet provides information about the financial position of a business organisation ___________________
(a) Over some time
(b) At a point of time
(c) For some time
(d) None of these
Answer:
(b) At a point of time

B. Answer all questions from 31 to 35. Each carries 1 score. (3 × 1 = 3)

Question 31.
Fill in the blanks:
Total Assets to Debt Ratio = \(\frac{Total Assets}{?}\)
(a) Short term debt
(b) Long term debt
(c) Total debts
(d) None of these
Answer:
(b) Long term debt

Question 32.
___________________ analyse the cost of operations about the revenue from operations.
(a) Operating profit ratio
(b) Operating ratio
(c) Gross profit ratio
(d) Net Profit ratio
Answer:
(b) Operating ratio

Question 33.
Which of the following is not a cash outflow from operating activities?
(a) Cash payment to suppliers of goods
(b) Cash payment to employees
(c) Cash payment to acquire fixed assets
(d) Cash payment to insurance premium
Answer:
(c) Cash payment to acquire fixed assets

Part – VII

A. Answer the following question carries 2 scores. (1 × 2 = 2)

Question 34.
Write a short note about an unlimited company.
Answer:
If the liability of the members in a company is unlimited, such companies are called unlimited companies.

B. Answer any one question from 35 to 36. Carries 2 scores. (1 × 2 = 2)

Question 35.
A company registered with 10000 equity shares of Rs. 10 each, offered 9000 equity shares to the public. But the company received applications for 8500 shares. Show the amount of auithorised capital and subscribed capital in the Balance Sheet.
Answer:
Note to Accounts to Balance Sheet

Question 36.
Shareholders’ fund includes share capital and ___________________ and ___________________
Answer:
Reserves and Surplus

Part – VIII

A. Answer any three questions from 37 to 40. Each carries 3 scores. (3 × 3 = 9)

Question 37.
Write the features of a private company.
Answer:
Private Company: A private company is one which by its articles:

• Restricts the right to transfer its shares.
• A private company must have at least 2 persons, except in case of a one-person company.
• Limits the number of its members to 200.
• Prohibits an invitation to the public to subscribe to its shares and debentures.

Question 38.
Ramesh, a shareholder having 500 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including premium of Rs. 2/-) and the first and final call of Rs. 3/-. His shares were forfeited after the first and final call. Give journal entries for the forfeiture of shares.
Answer:
Journal

Question 39.
Write any three differences between shares and debentures.
Answer:
Difference between Share and Debenture

• Share is an ownership security. But debenture is a creditorship security.
• Dividend is paid on shares. But interest is paid on debentures.
• The rate of dividend on the share may vary from year to year. But the rate of interest on debenture is fixed.
• Shareholders are the owners of the company. But debenture holders are the creditors of the company.
• A share is unsecured. But debenture is secured.
• Shareholder enjoys voting right. But debenture holder has no voting rights.

Question 40.
Write any three limitations of the cash flow statement.
Answer:
Limitations of Cash flow Statement:

• Fails to assess profitability.
• Fails to present net income.
• Inter-industry comparison is not possible.
• Fail to assess the liquidity and solvency position.

B. Answer the following question, carries 3 scores. (1 × 3 = 3)

Question 41.
ABC Ltd. purchased a machine from XYZ Ltd. for Rs. 4,40,000 and agreed to make the payment of purchase consideration by issuing 4000, 9% Debentures of Rs. 100 each at a premium of 10%. Pass Journal entries in the books of ABC Ltd.
Answer:
Journal

Issue price of debenture = Rs. 110

Part – IX

A. Answer any two questions from 42 to 44. Each carries 4 scores.

Question 42.
Quilon Ltd. issued 20000, 7% Debentures of Rs. 100 each payable Rs. 40 on application and balance on allotment. The public applied for 18000 debentures, which were fully allotted and the amount was duly received. Give journal entries in the books of Quilon Ltd.
Answer:
Journal

Question 43.
Write any four objectives of the financial statement.
Answer:
Objectives of Financial Statements:

• To provide information about assets and liabilities of the business.
• To provide information about the earning capacity of the business.
• To provide information about cash flows.
• To Judge the effectiveness of management.

Question 44.
From the following information prepare a common size Income Statement for the year ended 31st March 2020, 31st March 2021.

Answer:
Common Size Statement of Profit and Loss for the year ended 31/3/2020 and 31/3/2021

B. Answer any one question from 45 to 46. Carries 4 scores. (1 × 4 = 4)

Question 45.
Monalisa Ltd. issued 20000 shares of Rs. 10 each to the public. All the shares were fully subscribed. The number of shares was payable as Rs. 30 on application, Rs. 40 on allotment and Rs. 30 on first call. Company does not make first call. One shareholder having 100 shares paid first call money at the time of allotment. Pass Journal Entries.
Answer:
Journal

Question 46.
Write the four important aspects of Analysis of Financial Statements.
Answer:
Financial analysis is useful and significant to different users in the following ways:

• Finance Manager: Financial analysis focuses on the facts and relationships related to managerial performance, corporate efficiency, financial strengths and weaknesses and creditworthiness of the company. A finance manager must be well-equipped with the different tools of analysis to make rational decisions for the firm. The tools for analysis help in studying accounting data to determine the continuity of the operating policies, investment value of the business, credit ratings, and testing the efficiency of operations.
• Top Management: Financial analysis helps the top management in measuring the success of the company’s operations, appraising the individual’s performance and evaluating the system of internal control.
• Trade Payables: Trade payables, through an analysis of financial statements, appraises not only the ability of the company to meet its short-term obligations, but also judges the probability of its continued ability to meet all its financial obligations in the future. Trade payables are particularly interested in the firm’s ability to meet their claims over a very short period. Their analysis will, therefore, evaluate the firm’s liquidity position.
• Lenders: Suppliers of long-term debt are concerned with the firm’s long-term solvency and survival. They analyse the firm’s profitability over some time, its ability to generate cash, to be able to pay interest and repay the principal, and the relationship between various sources of funds (capital structure relationships). Long-term lenders analyse the historical financial statements to assess the future solvency and profitability.
• Investors: Investors, who have invested their money in the firm’s shares, are interested about the firm’s earnings. Financial analysis helps the investors to know the present position and future profitability of the company.

Part – X

Answer any one question from 47 to 48. Carries 5 scores. (1 × 5 = 5)

Question 47.
Royal Ltd. issued 10000 equity shares of Rs. 10 each payable as Rs. 2 on application, Rs. 2 on allotment, Rs. 2 on first call, Rs. 2 on second call and Rs. 2 on final call. Company received applications, all the shares issued and amount were duly received. Pass journal entries.
Answer:
Journal

Question 48.
Calculate Current Ratio and Quick Ratio from the following information:

Answer:
(a) Current Ratio = \(\frac{Current Assets}{Current Liabilities}\)
Current Assets = 25,000 + 25,000 + 15,000 + 2,000 = 67,000
Current Liabilities = 50,000 + 2,000 = 52,000
Current Ratio = \(\frac{67,000}{52,000}\) = 1.29 : 1

(b) Quick Ratio = \(\frac{Quick Assets}{Current Liabilities}\)
Quick Assets = Current Assets – (Inventory + Advance Tax)
= 67000 – (25000 + 2000)
= 40,000
Quick Ratio = \(\frac{40,000}{52,000}\) = 0.77 : 1