KAILASH KANDPAL

Saturday, 28 April 2012

KENDRIYA VIDYALAYA NO.2 NAUSENABAUGH VISAKHAPATNAM 5.

CLASS TEST

SUBJECT: ACCOUNTANCY DATE: 28.04.2012 MAX.MARKS: 15

Q.1 Where would you record ‘Interest on drawing’ when capitals are fixed? 1 m

Q.2 State on difference between Profit and Loss a/c and Profit & Loss appropriation a/c. 1m

Q.3 In the absence of partnership deed specify the rules relating to the interest on partners loan and salary to partners. 1m

Q.4 Amit is partner in a firm he withdrew the following amount during the year 2011.

01.02.11 Rs 4000

01.05.11 Rs 10000

30.06.11 Rs 4000

31.10.11 Rs 12000

31.12.11 Rs 4000

Interest on drawings is to be charged at 7.5% p.a. Calculate interest on drawing to be charged for the year ending 31.12.11 (4m)

Q.5 A, B and C are partners their capital a/c being Rs 30000, Rs 25000 and Rs 20000 respectively. In arriving at these figures the profit for the year ending 31.3.2011 amounting to Rs 24000 had been credited to partners in the proportion in which they shared profits. During the year their drawings were Rs 5000, Rs 4000 and Rs 3000 respectively. Subsequently the following omissions were noticed.

1. Interest on capital at the rate of 10% p.a was not charged.

2. Interest on drawings A – Rs 250 B - Rs 200 and C – Rs 150 was not recorded.

Record necessary adjustment entry. (4m)

Q.6 Amit and Sumit are partners sharing profits and losses in the ratio of 3:2 with capital Rs 50000 and Rs 30000 respectively. Interest on capital is agreed to be paid @ 6% p.a. Sumit is allowed a salary of Rs 2500 p.a. During 2011 the profit prior to the calculation of interest on capital but after charging Sumit salary amounts to Rs 12500. A provision of 5% of profit is to be made in effect of manager’s commission. Prepare profit and loss appropriation a/c. (4m)

SUGGESTED ANSWERS

Ans. 1 Current a/c

Ans.2 Profit and loss a/c is prepared to ascertain the net profit earned by the organization.

Profit and loss appropriation a/c is prepared to find how the profit earned will be distributed among the partners.

Ans. 3 Interest on loan will be given @ 6%p.a and no salary will be given to the partners in the absence of partnership deed.

Ans.4

Date	Amount	Period	Product
01.02.11	4000	11	44000
01.05.11	10000	8	80000
30.06.11	4000	6	24000
31.10.11	12000	2	24000
31.12.11	40000	0	0
		TOTAL	172000

Interest on drawing = 172000 x 7.5 x 1 = Rs 1075

100 x 12

Ans. 5

	A	B	C
Amount received (A)	8000	8000	8000

Dr Profit and loss appropriation a/c Cr

To Interest on Capital		By Profit and Loss a/c	24000
A	2700	By Interest on Draw.
B	2100	A	250
C	1500	B	200
To Profit transfer to		C	150
A Capital	6100
B Capital	6100
C Capital	6100
TOTAL	24600	TOTAL	24600

Statement showing Opening Capital

	A	B	C
Closing Capital Bal	30000	25000	20000
+ Drawing	5000	4000	3000
	35000	29000	23000
- Profit and loss a/c	8000	8000	8000
Opening Capital bal	27000	21000	15000

	A	B	C
Interest on Capital	2700	2100	1500
Profit and Loss a/c	6100	6100	6100
	8800	8200	7600
Interest on drawing	250	200	150
Amount Receivable (B)	8550	8000	7450
(A) – (B)	550 Cr	---	550 Dr

Journal entry

C Capital a/c Dr 550

To A Capital a/c 550

(being adjustment entry for interest on capital and drawing pass)

Ans.6

Dr Profit and loss appropriation a/c Cr

To interest on capital		By Profit and Loss a/c	15000
Amit	3000	(12500+2500)
Sumit	1800
To Sumit Salary	2500
To Manager Comm.	750
To Profit transfer to
Amit Capital	4170
Sumit Capital	2780
TOTAL	15000	TOTAL	15000

Friday, 27 April 2012

CLASS TEST MARKS

MAX.MARKS: 15

MONTH: APRIL 2012

S.No	Name	Bus.Studies (15)	Accountancy (15)
1	Abhishek	7	4
2	Amarjeet	5	3
3	Ankur	2	4.5
4	Alok	7	5
5	Diksha	11	AB
6	Gaurav	AB	AB
7	Jyoti	7	12
8	Madhu Bala	10	9
9	Mamta	15	12
10	Neha	13	9
11	Preeti	10	12
12	Priyanka	8	8
13	Rajat	6	2
14	Rupali	7	10.5
15	Sandeep	10	3.5
16	Shabeena	7	8
17	Shivali	8	5.5
18	Shubham	2	AB
19	Sneha	7	10.5
20	Soni Kumari	8	6
21	Tanmay	6	5
22	Vandana	13	11

Monday, 23 April 2012

NATURE AND SIGNIFICANCE OF MANAGEMENT

Sunday, 22 April 2012

Difference between Co-ordination and Co-operation

Basis	Co-ordination	Co-operation
Meaning	Co-ordination refers to bringing together the activities of an organisation	Co-operation refers to voluntary efforts of individuals to work together and help each other
Nature	Co-ordination is conscious and deliberate function	It is voluntary effort of employees
Interdependence	Co-ordinations is interdependent upon co-operation, as it is incomplete without it.	Co-operations is also dependent on co-ordination as it is meaningless without it.
Relations	Co-ordination is achieved through both formal and informal relations.	Co-operations arises of informal relations.
Scope	It includes co-operation and hence has a wider scope	It has a narrow scope as it is towards establishing co-ordination
Requirement	Co-ordination is essential for achievement of organizational goal, where a group of people work together	Co-operation is voluntary in nature, it arises only when people desire to work together.

Tuesday, 10 April 2012

BUSINESS STUDIES

DAY 3

1. Management is the process of working with and through other to achieve organizational objectives in a changing environment”. In the light of this statement explain briefly the characteristics of management.

2. “Without management, the resources of production. will remain resources and shall never become production”. In the light of this statement explain the importance of management in business.

3. Explain briefly the important features of management as a profession.

4. Is management an exact science ? Explain.

5. Is management becoming a profession ? Discuss in the light of the emerging trend.

6. “Co-ordination is the process of achieving unity of action among inter-dependant activities and departments of an organisation. Explain the nature of coordination in the light of this statement.

Ans. 1. The following basic characteristics of management highlight its nature :

1. Management is a goal – oriented process : An organisation has a set of basic goal which are the basic reason for its existence. These goals should be simple and clearly stated. Management unites the efforts of different individuals in the organisation towards achieving these goals. For example, a firm decides to sell 1000 TV sets in particular year. The manager will plan a course of action and organize the activities to achieve this goal.

2. Management is a group activity : An organization is a group of diverse individuals with different needs. Every member of the group has a different purpose for joining the organization. But as members of the organization they work towards achieving the common organizational goal. This requires team work and coordination of individual efforts in a common direction.

Management as a team can contribute more effectively and efficiently rather than individuals.

3. Management is an intangible force : Management cannot be seen. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos and there is coordination in the working environment.

4. Management is all pervasive : Management is virtually applied to every type of organisation, whatever its size or purpose. An auto plant, a city government, a cricket team, a hospital or a school all require management, a cricket team, a hospital or a school all require management. Moreover, what managers do inIndia, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.

5. Management is multidimensional : Management is a complex activity which has three main dimensions.

i) Management of work

ii) Management of people

iii) Management of operation

6. Management is a continuous process : Management process is a series of continuous, composite but separate functions (planning, organizing, staffing and controlling). But these functions are inter-dependent. They are simultaneously performed by all managers all the time.

7. Management is a dynamic function : Management is a dynamic function and has to adapt itself to the changing environment. An organization interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organization must change itself and its goals according to the needs of the environment.

Ans.2 The resources of production are Man, Machine, Material and Money. It is the mgt. which works in the direction of bringing these resources together and convert them into production thus achieving the organizational social and personal objectives.

Man+ Machine+Material+Money=Output/finished product Market (earning profit) Customer (if satisfied again comes) Organisation (earns profits & survives & grow)

Ans. 5 Yes, management is, by and large becoming a profession :-

This can be seen by referring to following emerging trend in business :-

® All big companies appoint professional managers at all levels, i.e. they appoint MBA qualified persons to perform managerial activities.

® Many India companies taken initiative to replace family members by professional managers.

® In public undertakings, management is in effect by professional managers. They appoint professional experts except in departmental undertakings such as Railways, Posts and Telegraph Department, which are controlled by ministers.

® Proprietary managers are becoming more interested in acquiring latest knowledge and technique of management. They are sending their relatives abroad to do managerial courses.

® All over the world, management is widely taught in the universities and management institutions. There are a large number of books on management. A number of journals specialise in various aspects of management problems.

® There are various formal training institutions which provide managerial training programmes, e.g. India Institutes of Management (IIMs) at Ahmedabad, Kolkata, Bangalore, etc., Post-Graduate Departments of Management; Colleges of Management in different parts of India.

Ans. 6. Co-ordination is the process of achieving unity of action among interdependent activities & harmonious implementation of plans for the achievement of desired goals. In the light of above statement the nature of co-ordination can be summarised as :-

® Synchronisation of different actions or efforts of the various units of an organisation.

® This provides the requisite amount, quality, timing and sequence of efforts.

® This ensures that planned objectives are achieved with a minimum of conflict.