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MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement

November 1, 2019

MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement

Cash Flow Statement Important Questions

Cash Flow Statement Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Cash flow analysis means:
(a) To disclose the changes in the amount of cash in an organization
(b) To find out embezzlement of cash
(c) To trade in cash
(d) None of these.
Answer:
(a) To disclose the changes in the amount of cash in an organization

Question 2.
Cash received from operating activities refers to:
(a) Cash flow during a specific period
(b) Cash resulting out of business activities during a specific period
(c) Deposit of cash in the bank
(d) None of these.
Answer:
(b) Cash resulting out of business activities during a specific period

Question 3.
In flow of cash in cash flow statement means:
(a) Transactions that result in the increase of sources of cash and cash balance
(b) Transactions that result in the decrease of sources of cash inflow
(c) Transactions which have no effect on the sources of cash inflow
(d) Transactions that results in increase of fixed assets.
Answer:
(a) Transactions that result in the increase of sources of cash and cash balance

Question 4.
In how many ways is the cash flow statement prepared:
(a) One
(b) Two
(c) Four
(d) None of these.
Answer:
(b) Two

Question 5.
It is compulsory to prepare and present cash flow statement for:
(a) Pvt. company
(b) All listed company
(c) Public Ltd company
(d) Foreign company.
Answer:
(b) All listed company

Question 6.
Cash flow statement is prepared by:
(a) All company
(b) Every commercial organization
(c) Every partnership firm
(d) Every co-operative organization.
Answer:
(a) All company

Question 2.
Fill in the blanks:

The statement which is prepared to know the difference between current assets and current liabilities is known as …………….
The statement in which changes in inflow (receipts) and outflow (payments) of cash are known is called …………….
The situation in which there is decrease in cash balance of business is called …………….
In the condition of ……………. the balance of cash increases in business.
Cash flow statement is prepared in ……………. steps.
If the net profit earned during the year is Rs. 50,000. The initial and final account holders of Debtors are Rs. 10,000 and Rs. 20,000 respectively. Then the cash flow will be equal to ……………. from operarting activities.
At the end of the year prepaid expenses ares ……………. from the earned profit for the
year.
The accured income of a year is ……………. from the net profit.
For the calculation of cash flow from operating activities, writing off the goodwill is ……………. during the year.
For the calculation of cash flow from operating activities, the provision for bad debts are ……………. to the earned profit the year.
Creditors are the ……………. of a company.
Realization of loan is included in ……………. activities.
Cash flow statement depict the ……………. changes between cash & cash equivalents.
Redemption of preference share is known as ……………. activities.
In a commercial organization, the operating activities are its ……………. activities.

Answer:

Fund flow situation
Cash flow statement
Out flow of cash
Inflow of cash
Three
Rs. 40,000
Deducted
Added
Added
Added
Liabilities
Financial
Historical
Financial
Main / Chief.

Question 3.
Match the columns:
MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement - 1
Answer:

(b) In flow of cash
(a) Outflow of cash
(d) Fund flow statement
(c) Cash flow analysis
(e) Exclude non operating items

Question 4.
Write true or false:

Profit earned during the accounting year is called net profit.
Cash flow analysis does not provide information regarding the direction and condition of changes in cash.
The position of working capital of business can be known through cash flow statement.
Cash received from operating activities is the result of cash generated through business activities.
In single column cash flow statement, inflow of cash is added.

Answer:

True
False
False
True
True.

Question 5.
Write the answer in one word / sentence:

A statement which shows the financial condition through inflow and outflow of funds.
Statement showing changes in cash positions.
Cash resulting out of business activities is called as
Issue of shares and debentures in consideration other than cash and assets shown in the cash flow statement against issue of shares and debentures are called
Which statement is related to each item of working capital.

Answer:

Fund flow statement
Cash flow statement
Cash from operation
Non current assets
Fund flow statement.

Cash Flow Statement Very Short Answer Type Questions

Question 1.
What do you mean by cash flow statement ?
Answer:
Cash flow statement means statement of change in cash position of the enterprise. It analyses the causes of changes in cash position between the two financial statements. It is a statement which shows inflows and outflows of cash and cash equivalents in an enterprise during a specified period of time. This statement is the summary of sources of cash and application of cash in various fields.

Question 2.
What is the meaning of flow in cash flow statement ?
Answer:
In the cash flow statement, there is a combination of two words ‘Cash’ and ‘Flow’. The meaning of the word ‘Cash’ is cash balance and bank balance. The word ‘Flow’ refers to the change or movement. In this way ‘cash flow statement’ (CFS) means the changes occurred during any period in the cash position business or institution which exhibits the cause and amount of changes and direction.

In this statement he sources of cash, uses of cash and net cash position is included, which is the difference of total sources and uses. This statement is also known by the name statement of sources and uses of cash of statement of sources and application of cash.

Flow of cash:
Cash Flow is created when the net effect of any transaction either bring increase or decrease in the cash amount. That transaction which apart from cash account, affects other current accounts or non-current accounts or both, it creates change in cash position.

Through those transactions by which there is an increase in the cash balances of the business or inflow of cash or by those transactions, there from comes decrease in cash balance of business, they are presumed to be the uses of cash or outflow of cash. In other words, the receipt of cash can be called flow of cash and payment can be called as the use of cash.

Question 3.
Write the major source of cash.
Answer:
The major source of cash are as under:

Issue of equity and preference shares for cash
Raising of long term debts – issue of debentures for cash, accepting deposits from public
Sale of fixed assets in cash
Non-operating incomes-Dividends and interest on investment
Cash from operating activities of the business.

Question 4.
Write any four utilities of cash flow statement.
Answer:
Utilities of cash flow statement are as follows:

Evaluation of cash position
Enable management in planning and control.
Disclose failure or success of management by performance evaluation
Helps in framing long term planning
Helps in determining cash flows from different activities separately.
Evaluation of liquidity position of the firm.

Question 5.
What is meant by ‘Cash flow from operating activities’ ?
Answer:
As per AS – 3, operating activities are the principal revenue producing activities of the enterprise, e.g., for a company dealing in manufacturing of garments, purchase of raw materials, payment of manufacturing expenses, sale of garments etc. are the principal revenue producing activities. Cash inflows and outflows from these activities will affect the calculation of profits or loss of the business.

Question 6.
Mention the four objects / importance of cash flow statement.
Or
What are the uses of cash flow statement ?
Answer:
The followings are the objectives of cash flow statement:

This is useful in the evaluation of cash of the institution. By this, through budget, the need of the cash of the institution can be estimated,
The use of cash can be controlled according to plan
This analysis is also helpful in the evaluation of financial policies.
By cash flow analysis, the knowledge of redemption capacity of the institution is also possible.

Question 7.
Differentiate between net profit and cash received from operation
Answer:
The differences between net profit and cash from operation:
MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement - 2

Question 8.
Write the limitations of cash flow statement.
Answer:
The limitations of cash flow statement are as follows:
1. Non – cash transactions are ignored:
Cash flow statement shows only inflows and outflows of cash and cash equivalent. It ignores non-cash transactions like conversion of shares into debentures, purchase of building by issue of shares.

2. Lack of Accuracy:
Cash flow statement is prepared on the basis of financial statement. So if financial statement is incorrect, the cash flow statement may be incorrect.

3. Long-term analysis not possible:
Through cash flow statement long-term analysis is not possible. It ascertain only the short-term financial position of the business.

Question 9.
When does investment is equivalent to cash ?
Answer:
There are two stages are as follows:

When invest is for short-period of time like 3 months or less than 3 months
When invest can converted into cash without any risk
When goods purchased for issuing shares.

Question 10.
Explain operating activities.
Answer:
Operating activities are the main revenue producing activities of the enterprise. This activities comprises of all those transaction and events which determine net profit or loss of the business. Example of cash receipt from operating activities are cash received on sale of goods and rendering of services, cash receipt from royalties, fees, commission etc., cash receipt from sale of securities.

Question 11.
Explain any four objectives of cash flow statements.
Answer:
Objectives of cash flow statements are:
1. Analysis of cash position:
Cash flow statement explains the reason for lower or higher cash balance with the firm. Sometimes a firm may have lower cash balance in spite of higher profits or a higher cash balance in spite of lower net profits. Cash flow statement does help in explaining the causes of such quotation.

2. Short term cash planning and management:
Cash flow statement is very useful for short term financial planning and management. This statement reveals the position of surplus or deficiency of cash so that the management may be able to make plan for proper investment of surplus cash or to tap the sources where from the deficiency is to be met with.

3. Evaluation of liquidity:
Liquidity means ability to meet current obligations at due time i.e., payment to creditors, repayment of bank loan etc. Cash flow statement disclose the position of liquidity in a better way and that is why banks and other financial institutions use cash flow statements for the evaluation of liquidity of any firm.

4. Comparison of operating performance:
Cash flow statement enhances the comparability of the reporting of operating performance by different enterprises because it eliminates the effects of using different accounting treatment of the same transactions and events.

Question 12.
Give any two methods of financial statement analysis.
Answer:
The two methods of financial statement analysis are as follows :

Comparative statement
Common size statement.

1. Comparative statement:
Comparative financial statements refer to those statement which exhibit the financial position of a business concern at different periods of times. The statements are prepared in comparative form in this comparatively side by side so as draw conclusion about the profit earning capacity of firm.

2. Common size statement:
Common size statement refer to those statement in which figures reported are converted into percentage to some common base like net sales for income statement and total assets for Balance sheet. In this statement net sales assumed as 100 and other figures are expressed as percentage on net sales.

Question 13.
Write the name of any four sources of cash receipts in a business.
Answer:
Sources for Procuring cash are as follows:

Sale of fixed assets
Interest on investment
Increase in share capital
Issue of shares and debentures
Dividend received.

Question 14.
By which method cash flow by operating activities can be calculated ?
Answer:
As per accounting standard-3 operating activities are the principal revenue generating activities of the business. All such activities are included in operating activities of the business which are not related to investment and financial activities and generate income. Cash flow from the operating activities indicates that there is sufficient cash generation which helps the business in its smooth operation.

The cash inflow includes cash receipts from sale of goods and services, cash receipts from royalties, fees, commission etc. and cash outflow includes cash payment for purchases of goods and services, cash payments for wages, salaries and other payments to employee, cash payment of taxes etc.

Question 15.
What do you mean by financial activities ?
Answer:
Financing activities are those activities which relates to long term funds or capital of an enterprise, cash received from issue of equity shares, debentures, raising loan (long term) etc.

Question 16.
What do you mean by non-cash transactions ?
Answer:
The transactions which do not part of Financing or Investing activities are called non-cash items or transaction. For Example : Depreciation, conversion of debenture into shares.

Cash Flow Statement Short Answer Type Questions

Question 1.
Write difference between fund flow statement and cash flow statement.
Answer:
The differences between fund flow statement and cash flow statement are:
MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement - 3

Question 2.
What are the uses of cash flow statement ?
Answer:
The uses of cash flow statement may be studied under following:
1. Analysis of cash position:
Cash flow statement explains the reason for lower or higher cash balances. Since it is prepared on cash basis of accounting, it proves very useful for the evaluation of cash position of a business enterprise.

2. Assessment of liquidity:
Liquidity means ability to meet current obligations on due time, i. e., payment to creditors, repayment of bank loan etc. It can be assessed with the help of cash flow statement.

3. Tool of short-term financial planning:
Cash flow statement is helpful in planning short-term need of cash of the enterprise. This statement reveals the position of surplus or deficiency of cash. It is the most appropriate device for short-term analysis.

4. Helpful in estimating future cash flow:
Historical cash flow information provides useful indicators of the amount, timing and certainty of future cash flows. It is also useful in checking the accuracy of parts assessments of future cash flows.

5. Helpful in the formation of policies:
Cash flow statement help in formation of various policies such as repayment of long-term loans, expansion or replacement of fixed assets declaration of dividend etc. which can be successfully implemented with sufficient cash resources.

6. Knowledge of progress of business:
Cash flow statement determine the inflow and outflow of cash from operating activities which show the progress of the enterprise or otherwise.

7. Useful to external analysis:
It is also useful to external analysis particularly to the bankers investors and creditors because they review the financial position of the concern and such review is greatly facilitated by cash flow statement.

Question 3.
Give the format of cash flow statement
Answer:
Format of cash flow statement: Indirect method:
MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement - 5

Question 4.
Describe the importance of fund flow statement.
Or
Explain any four objectives of fund flow statement.
Answer:
The objectives of preparing a fund flow statement are as follows:

(1) Helpful in financial analysis:
Financial analysis is facilitated by fund flow statement. The balance sheet do show the financial position but changes in various assets and liabilities is not shown by the balance sheet. The fund flow statement provides information as regard to the changes in various items of assets and liabilities.

(2) Determination of fund from operation:
Fund flow statement provides the information of actual profit earned through operational activities. Fund flow statement determines the fund from operational not activities by re-adjusting those non-trading income, expenses and losses.

(3) Management of working capital:
In fund item statement the word ‘fund’ refers to working capital. Through fund flow statement it can be determined whether there is sufficient amount of working capital within the business or not.

(4) Knowledge of sources and use of fund:
An analysis of various searess of receipt and application of fund can be made through fund flow statement. From the statement the business can determine the various sources and the receipt of as well as sources and quantum of payment.

(5) Knowledge of some important funds:
The fund flow statement provide various significant information to the managers owners and other related parties. These information are:

Major heads of income and expenses during a period.
Determination of total fund received from various sources.
Application of amount on various items.
How the profit has been used
Dependency of firms on borrowings.
Burden of cost of capital etc.

Question 5.
State some differences between cash flow statement and cash budget.
Answer:
The differences between cash flow statement and cash budget:
MP Board Class 12th Accountancy Important Questions Chapter 11 Cash Flow Statement - 7

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Accountancy Important Questions Chapter 10 Analysis of Accounting Ratios

November 1, 2019

MP Board Class 12th Accountancy Important Questions Chapter 10 Analysis of Accounting Ratios

Analysis of Accounting Ratios Important Questions

Analysis of Accounting Ratios Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Ratio analysis means:
(a) To establish mathematical relation between two figures
(b) To establish qualitative relation between two figures
(c) To establish inverse relation between two figures
(d) None of these.
Answer:
(a) To establish mathematical relation between two figures

Question 2.
Current ratio represents:
(a) Surplus of fixed assets over fixed liabilities
(b) Surplus of current assets over current liabilities
(c) Surplus of artificial assets over current liabilities
(d) Surplus of assets over liabilities.
Answer:
(b) Surplus of current assets over current liabilities

Question 3.
Liquid assets refers to:
(a) The assets which can be converted into cash immediately
(b) The assets which cannot be converted into cash immediately
(c) The assets which can be sold at profit
(d) The assets which can be sold at cost price.
Answer:
(a) The assets which can be converted into cash immediately

Question 4.
Meaning of solvency ratio is:
(a) Capability of paying internal debts
(b) Capability of paying external debts
(c) Capability of acquiring assets
(d) None of these.
Answer:
(b) Capability of paying external debts

Question 5.
Capital turnover ratio establishes relationship between:
(a) Sales and purchase
(b) Net sales and capital employed
(c) Gross sales and capital employed
(d) None of these.
Answer:
(b) Net sales and capital employed

Question 6.
The given below classes of ratio mainly calculate the risks:
(a) Liquidity, Activity and Profitability
(b) Liquidity, Activity and Stock
(c) Liquidity, Activity and Solvency
(d) Liquidity, Solvency and Profitability.
Answer:
(d) Liquidity* Solvency and Profitability.

Question 7.
The ……………. ratio calculates the main and suffix gains:
(a) Liquidity
(b) Activity
(c) Solvency
(d) Profitability.
Answer:
(d) Profitability.

Question 8.
In a commercial firm calculation of …………… is done on the basis of its paying capacities of short term liabilities:
(a) Activeness
(b) Liquidity
(c) Debts
(d) Profitability.
Answer:
(b) Liquidity

Question 9.
………….. ratios are an indicator of the intensity of change in proceeds or cash coming from the practice of diverse account:
(a) Activity
(b) Liquidity
(c) Solvency
(d) Profitability.
Answer:
(a) Activity

Question 2.
Fill in the blanks:

Liquidity refers to the ability of concerting assets into …………………
The capability of paying external debt is found out through …………………
Current ratio is also called as ………………… ratio.
Gross profit ratio is calculated on ………………… sales.
………………… ratio can be found out by dividing cost of goods sold by average stock.

Answer:

Cash
Solvency ratio
Working capital
Net sales
Stock turnover ratio.

Question 3.
Match the columns:
MP Board Class 12th Accountancy Important Questions Chapter 10 Analysis of Accounting Ratios - 1
Answer:

(b) Capability of paying internal liabilities
(a) Description of relationship between current assets and current liabilities
(d) Relationship between owner’s fund and total assets
(c) Relationship between net sales and capital employed
(e) Description relationship between net sales and working capital.

Question 4.
Write true or false:

Liquidity ratio refers to the ability of converting assets into cash.
Solvency ratio refers to the ability of paying internal debts.
Working capital is related to current assets and current liabilities.
Debtor’s turnover ratio does not show relationship between net credit sales and average trade debtors.
The main purpose of financial reporting is to inform the directors of the organization about the progress of its functionality.
Analysis of the data provided in the financial statement is known as financial Analysis.
Long term loan of the firm had a deep concern on the Interest and principal sum paying capacity of the firm.
A ratio is always expressed as the product of the division of a second number by a number.
A ratio shows both quantitative and qualitative aspects.

Answer:

True
False
True
False
False
True
True
False
False.

Question 5.
Write the answer in one word/sentence:

The assets which can be converted into cash immediately.
Surplus of current assets over current liabilities.
The ratio which is used to calculate relationship between net sales and capital employed.
Which ratio is related to paying of external debts.
Which ratio is related to cost of goods sold and average stock.

Answer:

Liquid assets
Working capital
Capital ratio
Solvency ratio
Stock turnover ratio.

Analysis of Accounting Ratios Short Answer Type Questions

Question 1.
Explain liquidity ratio.
Answer:
Liquidity means the ability of an enterprise to meet its current liabilities out of current assets. Liquidity ratios are computed to find out the short-term solvency of the enterprise short-term creditors and managers / directors are interested to know liquidity 1 position of the enterprise. These ratios disclose the sufficiency of working capital. Liquid it is the case where assets may be converted into cash without loss. The following ratios are calculated for liquidity test:

Current ratio or working capital ratio
Liquid ratio or quick ratio

Question 2.
Write differences between current ratio and quick ratio.
Answer:
The difference between current ratio and quick ratio:
MP Board Class 12th Accountancy Important Questions Chapter 10 Analysis of Accounting Ratios - 3

Question 3.
What is solvency ratio ?
Answer:
Solvency means the ability of an enterprise to meet its long-term obligations and thus solvency ratios reveals an enterprises ability to meet the long-term indebtness. Principally an enterprise should have sufficient funds to meet the long-term liabilities main solvency ratio are:

Debt equity ratio
Total assets to debt ratio
Proprietary ratio.

Question 4.
What is activity ratio ?
Answer:
Activity ratios are concerned with measuring the efficiency in assets management. It is concerned with employment of assets efficiently and in a profitable way. These ratios are calculated on the basis of sales or cost of goods sold, various assets like stock debtors, bills receivable, fixed assets etc and investments of the concern. These ratios are also known as turnover ratio or performance ratios. Following are important activity ratios:

Stock turnover ratio
Debtors turnover ratio
Creditors turnover ratio
Net working capital ratio
Fixed assets turnover ratio
Current assets turnover ratio
Capital turnover ratio.

Question 5.
What is profitability ratio ?
Answer:
Profitability means possibility of earning profit on the fund invested in the business. Profitability of a business can be determined on the basis of sales or investment. Usually it is determined on the basis of safes. The condition of profitability of a business concern depend on the sales volume, costing methods and proper use of various financial resources. Hence calculation of the ratio relating to sales, investments and funds of equity shareholders is called profitability ratio. Some important ratios are as given below:

Gross profit ratio
Operating ratio
Net profit ratio
Return on investments
Earning per share
Dividend per share
Price earning ratio.

Question 6.
What do you mean by current asset in current ratio ?
Answer:
Current ratio establishes relationship between movable assets and movable liabilities. Current ratio includes cash-in-hand, bank, debtors, receivable bills and other properties in current assets.

Question 7.
What is current ratio ? How is it calculated ?
Answer:
Current ratio is used to measure the efficiency of the firm to pay off its short-term liabilities. This ratio establishes the relationship between current assets and current liabilities. This ratio shows whether the current assets of the firm are adequate to meet out its current liabilities or not. This ratio can be calculated by using this following formula:

Question 8.
Which items are included in current liabilities ? (any four)
Answer:
Following items are usually included in current liabilities:

Creditors
Bills payable
Outstanding expenses
Bank loan
Bank overdraft
Unearned income
Provision for taxation.

Analysis of Accounting Ratios Long Answer Type Questions

Question 1.
Explain the importance of ratio analysis.
Or
Write two objectives of ratio analysis.
Answer:
me importance of ratio analysis for different interest groups is as below:

1. For short-term creditors:
Liquidity ratio i.e., current ratio and quick ratio are computed to find out the short-term solvency of the enterprise. Short-term creditors are interested in liquidity position of the concern. It helps to assess the ability of enterprise to meet its short-term liabilities promptly.

2. For long-term creditors:
Accounting ratios i. e„ solvency ratio discloses an enterprises ability to meet the long-term in debtedness with the help of debt equity ratio and interest ratio, solvency of enterprise can be assessed easily.

3. For managers:
Management takes many decisions in respect of business. Information regarding availability of working capital, compassion with other business unit etc. are received with the help of ratio analysis. With the help of ratio analysis the administrative work can be controlled easily.

4. For investors:
Ratio analysis proves helpful to know the short-term and long-term financial position of a business undertaking which helps investors for investing their money with the expectation of a good return. It enables the investors to study the result of various ratios and to tops proper decision.

Question 2.
Explain the meaning and purpose of the following ratio:

Current ratio
Debt equity ratio
Proprietary ratio
Capital turnover ratio
Fixed assets turnover ratio
Working capital turnover ratio.

Answer:
Meaning and objective or purpose of the ratios are as follows:
1. Current ratio:
Current ratio refers to the relationship between current assets and current liabilities. It measures the firm’s ability to full fill short-term commitment out of its current assets.

Objective:
The objective of current ratio is to assets the ability of enterprise to meet its short-term liabilities promptly.

2. Debt equity ratio:
This ratio expresses a relationship between debt and the equity. Debt means long-term loans, debentures and equity means shareholder’s fund, preference share capital, equity share capital, reserves less losses and fictitious asset like preliminary expenditure.

Objective:
This ratio judges the long-term financial position and soundness of the enterprise. It indicates the proportion between shareholders fund and long – term debts.

3. Proprietary ratio:
This ratio expresses the relationship between the total amount of owner’s funds and total assets. It shows the extent to which the shareholders own the business.

Objective:
Proprietary ratio expresses the general financial position of the enter-prise. It indicates what percentage of total asset has been financed by the shareholders fund.

4. Capital turnover ratio:
This ratio shows the efficiency of capital employed in the enterprise by how many times it is used to produce the sales. It establishes the relationship between sales and cost of sales and capital employed.

Objective:
Capital turnover ratio indicates the efficiency of capital employed in the enterprise by computing how many times the capital being turned overed.

5. Fixed assets turnover ratio:
The relationship between cost of sales or sales and fixed assets is known as fixed assets turnover ratio.

Objective:
This ratio, indicates how efficiently the fixed assets were used in business.

6. Working capital turnover ratio:
Working capital turnover ratio expresses the relationship between working capital and sales. It shows whether or not the working capital is utilized to increase sales.

Objective:
The objective of the ratio in to assertion whether or not working capital has been effectively utilized in promoting sales

Question 3.
What is average collection period?
Answer:
Debtor turnover ratio is related to average collection period which shows that in how many days the firm is realising its debts from debtors. It also highlights upon the quality of the debtors. The lower the .collection period the good the debtors are which is indicative of the fact that debtors are being realized soon. If this period is high, then it indicates that the fing liberal policy of collection realisation from debtors takes lot of time.

Question 4.
Discuss four limitations of Accounting ratios.
Answer:
limitations of Accounting ratios are:

1. Only quantitative analysis and not qualitative:
Under this, attention is not paid on the qualitative reasons. For example, while selling goods on credit to any customer, the attention is paid on his financial position and not on his character and conduct, which are also important.

2. Do not reflect price level changes:
Usually, in the financial statement, price level change is pot included therefore, it may give confusing and misleading results. The analysis while interpreting should keep in mind, the changes in the price level.

3. Represents only a relative position:
Ratios only exhibit a relative position. Therefore, ratios should be understood as substitution of figures or data. There can be sufficient difference between actual figures and ratios.

4. Limited use of a single ratio:
Only one ratio does not exhibit the whole picture of any position. Therefore, without thinking overall ratios related to the presented problem the conclusions drawn on the basis of only one ratio can present confusing picture. Thus, it is necessary that while drawing conclusions all related ratios be thought over.

Question 5.
What do you understand by profitability ratio and sales ratio ?
Answer:

Profitability ratio:
Business is established for earning profits. Profit is necessary for the progress and the development of the business. All the concerned parties related to business are benefited by the profitability ratio. The owner of the business who has invested capital expect return on his capital in the form of profit, the creditors feel assured about the return of their money by profitability and the salary, bonus etc. of the employees also depend upon the profitability ratio of the business.

Sales ratio:
The analysis of profitability can be done on the basis of the sales. The profitability of the business calculated on the basis of sales is justified. The following ratios are calculated under it.

Gross Profit ratio:
This ratio establishes the relation between gross profit and net sales. The computation of this profit is done by deducting direct expenses related to the cost of the goods sold out of net sales. The contribution of gross profit will be more in the net profit when the gross profit will be high. It is calculated as under:

If gross profit is not given then it can be calculated as Sales – Cost of goods sold. Cost of goods sold = Opening stock + Purchases + Direct expenses – Closing stock. Gross profit = Sales + Closing stock – (Opening stock + Purchases + Direct expenses) or Gross profit = Sales – Cost of goods sold.
Net sales is calculated as Net sales = Total sales – Sales returns.

Net profit ratio:
Net profit ratio before tax and after tax establishes the relation between Net profit and Net sales. The objective of computation of this ratio is to determine the efficiency of the whole activities of the institution. In other words to determine the over all profitability. The following point highlight its importance:

It is also known as the margin of net profit.
This ratio reveals what part of sales is utilized for generating dividend and how many share is utilized as reserves.
The financial position of the institution is favorable to face the financial conditions or not.
Cost of production is increasing due to sale price, demand is decreasing due to production, then what part of sales could be left to face such situation.
High net profit ratio is a symbol of favorable condition of the institution to face any adverse circumstances. If the ratio is low then it is hot fit for such circumstances.

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing

November 1, 2019

MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing

Staffing Important Questions

Staffing Objective Type Questions

Questions 1.
Choose the correct answer :

Question 1.
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization is said by :
(a) Theo Haimann
(b) Koontz O’ Donnell
(c) George R Terry
(d) Edwin B Fillipo.
Answer:
(a) Theo Haimann

Question 2.
Various sources of recruitment:
(a) Advertisement
(b) Employment office
(c) Reference
(d) All of the above.
Answer:
(d) All of the above

Question 3.
Aim/objective of interview :
(a) Utility of candidate
(b) To give complete information to candidate about post and organization
(c) Happiness of candidate
(d) All of the above.
Answer:
(d) All of the above.

Question 4.
Employment office is a source of recruitment:
(a) Internal
(b) External
(c) (a) and (b) Both
(d) None of these.
Answer:
(b) External

Question 5.
Best option of selection is choosen by :
(a) Prior analysis
(b) Based on procedure
(c) Analysis of evaluation
(d) Policy.
Answer:
(c) Analysis of evaluation

Question 6.
Training emphasis on :
(a) Theoretical knowledge
(b) General knowledge
(c) All round knowledge
(d) Practical/Behavioral knowledge.
Answer:
(c) All round knowledge

Question 7.
Out of the following on job training :
(a) Case study
(b) Inter ship training
(c) training development
(d) seminar and workshop
Answer:
(c) training development

Question 8.
Staffing is related to :
(a) Political aspect .
(b) Economic aspect
(c) Geographical aspect
(d) Human aspect.
Answer:
(d) Human aspect.

Question 9.
From the following which is a monetary motivation :
(a) Bonus
(b) Pension
(c) Earned leave
(d) All of the above.
Answer:
(d) All of the above.

Question 10.
Recruitment is the process of searching :
(a) Senior employees
(b) Retired employees
(c) Future employees
(d) Special employees.
Answer:
(c) Future employees

Question 2.
Fill in the blanks :

……………. means reasonable appointment and recruitment of employees for implementations of policies.
There are…………. sources of recruitment in an enterprises.
Reappointment of former employees is an…………. source of recruitment.
…………………. is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.
The process of improving the present skills of employees for higher posts in future is called…………

Answers:

Staffing
Two
Internal
Selection
Development.

Question 3.
Write the answer in one word/sentence :

Write any one internal sources of recruitment.
Write any one external source of recruitment.
What is the last stage of selection ?
Name the method of training in which the training is imparted to employee by giving various jobs in the organization.
Name the method of training in which training is given with the help of machines and equipment identical to those used in the place of work.
What does training increases morale or work load ?
What is develop among workers by training ?
Where is on the job training imparted ?
What is the modern source of recruitment ?
Transfer is which source of recruitment ?
How many method are there in training ?
By which source of recruitment workers are motivated ?
Write one advantage of training to workers ?
What is staffing ?
Write the name of one external source of recruitment.

Answer:

Transfer
Recruitment through advertisement
Placement
Job rotation
Vestibule training
Morale
Self confidence
Work place
Internet
Internal source
Two
Internal source
By training efficiency and capability of worker increases
Staffing means reasonable appointment and recruitment of employees
Employment exchange.

Question 4.
Write true or false :

By training knowledge, efficiency and capacity of workers increases.
Recruitment is the part of human resource.
Recruitment develops the feeling of owners among the workers.
Recruitment and selection of workers is same.
Expenditure done on recruitment is waste of money.
There is no difference between training and development.
Internship training provides both theoretical and practical training of work.

Answer:

True
True
True
False
False
False
True

Question 5.
Match the coloums:
MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing image - 1
Answers:

Staffing Very Short Answer Type Questions

Question 1.
What is training ?
Answer:
Training is the workshop of gaining more and high knowledge. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

Question 2.
What do you mean by ’transfer’ as a form of internal sources ?
Answer:
Transfer involves the shifting of an employee from one job to another. At the time of transfer, it is ensured that the employee to be transferred to the new job is capable of performing the jobs. When transfer is done at the same post then there is not much difference in salary and facility.

Question 3.
What do you mean by orientation in the process of staffing ?
Answer:
Orientation means to acquaint the employees with their work and organization. In order to work as a term new employees are introduced to their subordinates and seniors. The employee is acquainted with the policies, aims and objectives of the organization.

Question 4.
What do you mean by ’Placement’ as a step of staffing ?
Answer:
After the selection of the candidates for the post ‘Placement’ takes place. As per the terms and conditions and date of joining mentioned in the appointment letter the candidate has to join the duty. From the very date of his joining, he is treated as an employee of that office.

Question 5.
What is campus recruitment ? .
Answer:
A business organization may liaise with universities, colleges, vocation or management institutions to recruit newly qualifies students for technical profession or managerial position. Campus recruitment is a well established practice followed by business to appoint fresh talent in the organization.

Question 6.
What are the three important aspects of staffing.
Answer:
The important aspects of staffing are :

Recruitment
Selection
Training

Question 7.
What do you mean by apprenticeship training ?
Answer:
This is one of the oldest method of training. The main purpose of this training is to make the employees well versed in a specific art or technique. This method is used in those cases where long-term training is required to attain proficiency to perform a particular task. In this training stipend is paid to the candidates.

Question 8.
Out of the two, recruitment and selection which process positive and why ?
Answer:
Recruitment is positive process because large number of candidates are invited and motivated to apply for a post.

Question 9.
Why is selection called negative process ?
Answer:
Selection is a negative process because in this process qualifiers are lesser as compared to rejected.

Question 10.
State the difference between work load analysis and work force analysis.
Answer:
Work load analysis assesses the number and type of human resources required to perform jobs in the organization. Work force analysis estimates the number and type of human resources available in the organization.

Question 11.
Internal recruitment is better than external recruitment in many ways. Explain one reason.
Answer:
External recruitment demands expense for advertisement and conduction of examination where we can eliminate these expenses in internal recruitment.

Question 12.
Which source of recruitment motivates the employees ?
Answer:
Internal source of recruitment encourages and motivates the employees as it provides an opportunity to reach to higher posts.

Question 13.
What is meaning of Training ? How is it different from education ?
Answer:
Meaning of Training: Training is a systematic programme to increase the knowledge, skills, abilities and aptitudes of workers to perform specific jobs. The purpose of training is to achieve a change in the behaviour of those trained and to enable them to do their jobs in a better way.

Definitions : According to Jucius, “The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees, to perform specific jobs are increased.”

Training

This enhances the ability and skill of the employee
The teacher new skills and process

Education

This help to ingress the knowledge of employee
This enable the capability to debate and analyze

Question 14.
What are the elements of a good training programme ?
Answer:
Following are the elements of a good training programme :

Training programme should be according to aims and objectives of organization.
More attention should be paid to train the weak employees.
Training programme should go on continuously.
Training programme should be flexible.
Training programme should be given by a specific person.

Question 15.
What is Orientation / Induction ?
Answer:
Orientation / Induction is a method of trainning to familarize the new employee with the surroundings of the organization, provide information about the organization, its rules and regulations.

Question 16.
What do you mean by recruitment ? How many sources of recruitment are there ?
Answer:
Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in organization.

There are two sources of recruitment:

Internal source: An internal source of recruitment means inviting applications from personnel working within the organization.
External source : An external source of recruitment means filling all the vacancies created in the organization which are not filled by internal sources. To fill the vacant positions the business organization may have to rely on external source.

Question 17.
On the job training methods and off the job training methods. Explain.
Answer:
On the job training method : Under this the employees are trained while they are actually performing the job assigned to them. They learn in real work environment and gain practical experience.
Off the job training method : Under this method employees are trained in specially designed training locations which are away from work.

Question 18.
In which source of recruitment employee becomes inactive ?
Answer:
In internal source of recruitment employee becomes inactive because they know that they are going to be promoted to higher posts after a certain period of time.

Question 19.
When is transfer technique important ?
Answer:
Transfer technique means shifting an existing employee within the organization from one job to another, one shift to another or from one department to another. It helps to maintain optimal staff in the organization and trains employee for different types of jobs. It is the horizontal movement of staff.

Question 20.
Write any three characteristics of recruitment.
Answer:
Characteristics:

It is a process of searching employees and there are many sources of it.
Recruitment is positive and it precedes selection.
The number of candidates are maximum in recruitment and it is limited to the extent of calling an application.

Question 21.
What do you mean by recruitment through demotion ?
Answer:
When a person is recruited at a lower post then his current status, it is known as demotion recruitment. In this an incapable person is demoted from a higher position to a lower and a capable person is promoted to the vacant positions.

Question 22.
Why there is lack of favor during recruitment through external sources ?
Answer:
The recruitment through external source lacks favor for the recruitee as the management is unaware about him and has no previous details about him.

Question 23.
What is the expense on training known as ? Expenditure or investment.
Answer:
The expense on training is known as investment.

Question 24.
Why are internal sources considered more economical than external sources ?
Answer:
Internal sources of recruitment are the sources considered available within the organization, they are considered to be more economical for the following reasons :

It saves money as it does not require any kind of formal advertising of vacant position.
It saves time as it shortens the process of recruitment and selection.
It does not require any kind of orientation or induction training.

Question 25.
What do you mean by interview ?
Answer:
After basic screening and written tests, the selected candidate go through the formal interview process. It is the in depth conversation between interviewer and interviewee where interviewer may seek information from interviewee and the interviewee is expected to provide the same.

Staffing Short Answer Type Questions

Question 1.
Explain in short three internal sources of recruitment.
Answer:

1. Promotion: Competent and experienced persons of the enterprise are promoted to higher post to fill up the vacancy.

2. Transfer: Transfer involves the shifting of an employee from one job to another. At the time of transfer it is ensured that the employee to be transferred to the new job is capable of performing the job.

3. Recommendation of existing staff: Any vacancy can be filled up by appointing the relatives or friend on the basis of recommendation of existing staff.

Question 2.
Explain any four external sources of recruitment.
Answer:
External sources of recruitment are as follows :

1. Re appointment of former employees : Sometimes ex employees are reappointed in an organization. This is beneficial in two ways:

Experienced personnel become available and
Economy is achieved.

2. Direct recruitment in the office: This type of recruitment is done by the personnel department or selection section.

3. Recruitment through employment exchange: Public employment exchanges are also an important source of recruitment.

4. Friends and relatives of present employees: Present employee invite their friends and relatives for recruitment.

Question 3.
Explain the following method of training in brief:

Vestibule training
Internship training.

Answer:

1. Vestibule training: Vestibule training is such type of training which is given with the help of machines and equipment identical to those used in the place of work in specially created laboratories called vestibule laboratories etc. This type of training does not effect the production.

2. Internship training : The main aim of this training is to provide both theoretical and practical type of training with the joint effort of some technical institutes and business I undertakings this type of training is provided to the students to learn theoretical as well as practical aspects of job. For e.g.: In medical colleges medical students are given theoretical knowledge and in hospitals they are provided practical knowledge due to which students get I the practical training of theoretical knowledge.

Question 4.
Why is selection called the Negative process ?
Answer:
Selection is a Negative process because in this process the number of candidates | who are suitable for the jobs are less than the rejected people.

Question 5.
Why is internal source of recruitment more reliable ?
Answer:
Internal source of recruitment is more reliable than external source because the organisation already have full knowledge about the workers. The workers also have full knowledge about the system and working of organisation.

Question 6.
What is recruitment ?
Answer:
Recruitment is the process of searching for prospective employees and stimulating [ them to apply for job in the organization. The objectives of recruitment is to provide with the
organization, a large number of eligible people, from whom the most appropriate one may be selected.

Question 7.
Write short note on employment exchange.
Answer:
Employment exchange is an important source for the recruitment of employees. Employment exchange registers the different persons desirous to work in different posts. Institutions may contact employment exchange for suitable employees to fulfil their vacant posts.

Question 8.
Define staffing.
Answer:
Staffing may be defined as the managerial function hiring and developing the required personnel to fill in various positions in the organization.

Question 9.
What is selection ?
Answer:
Selection is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.In the present day, this system has become very much popular. Through this test general intelligence of the candidate is measured so that it can be known that how intelligent the candidate and how much he is cautious.

Question 10.
What is aptitude test ?
Answer:
This test is essential for knowing the aptitude towards work and to collect infor-mation about work. This type of test is according to the nature of work and post. Aptitude test is conducted to check the interest of employees towards work.

Question 12.
What do you mean by physical verification ?
Answer:
Physical verification : The complete bio-data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references, may be called for the candidate for the verification of character. If the candidate has worked somewhere else, then reference may be called from the previous employers.

Question 13.
What is pre test ?
Answer:
When the number of application of applicants are maximum and it is necessary to minimize the incompetent candidates by,

Physical measurement,
Intelligence and skill test,
e.g., PET, PMT, Pre-PSC etc.

Question 14.
What is interest test ?
Answer:
In this test candidate’s interest, hobby and habit are tested for this some questions relating to interest are given and candidates are asked to solve only 25% of questions. Candidates will solve only those 25% of questions in w hich the candidate is having interest.

Question 15.
Explain the methods of off the training in short ?
Answer:
1. Case study method : This is the modem method of training. This method was developed in Harvard School of America in the year 1920-25. In this method the worker is entrusted with the problem and asked to study its various aspects and suggest the solutions. If the worker does not gives right solution then he is guided how to make right decision. This method is suitable where number of trainee is less. It is an expensive method.

2. Seminar and conference method : In this method 20-30 employees shares their views and opinions. Workers can also get solutions of the problems by asking questions. Through this method out of various alternatives the best alternative is selected various enterprises holds these type of seminars and conferences.

3. Induction training : After selection of employee if he is said to perform the work then he will feel uneasy. Thus while dividing the work, for some days he is introduced with the working environment, subordinates, objectives, seniors so that he can perform the work effectively.

Question 16.
Why are internal sources of recruitment economical ? Give three reasons.
Answer:
The internal sources of recruitment are economical because :

No, expenditure on advertisement and inviting on application form.
There is no expenditure done on training. Even if it is there it is very nominal.
Workers are aware of general rules and regulations of the organization. So no expenditure is done on it.

Question 17.
Do you say that external source of recruitment is more time consuming ?
Answer:
Yes I do agree with it because in external sources application forms are invited. After getting application of candidates they are scrutinized. Some candidates are rejected. The suitable candidates are called for interviews, their medical checkup is done. All these activities take lot of time. So it is said that external sources are time consuming.

Question 18.
How is direct recruitment done in the office ?
Answer:
This type of recruitment is done by the personnel department or selection section. The following process is adopted in this system :

To call applications on the basis of advertisement.
To conduct written examination in the case the number of applicants are maximum as if it is necessary.
To take personal interview of the candidates who pass the written examination.
To take different test, if it is necessary.

Question 19.
Why are employees of an enterprise transferred ?
Answer:
Employees are transferred due to the following reasons :

To expose the person to a variety of jobs.
To avoid monotony associated with the execution of a particular job.
To penalize him, sometimes transfer orders are issued as penalty for an undesirable action.
A request by the employee himself, expressing his desire to work at some other work spot.

Question 20.
Explain the advantages of recruitment through internal sources.
Answer:

1. Knowledge of general rules : Due to years of service, employees know the rules and policies of the organization. So, it is not necessary to give them knowledge like fresh employees. This saves time and money.

2. Minimum cost: Recruitment process requires high expenses. There expenses can be saved.

3. Reduction in training cost: Employees of the organization know well, the working methods and techniques. So, they don’t require training for general work.

4. Increase in efficiency: Employees are aware of the fact that they will get promotion in future if they perform their work sincerely and with full dedication. This improves their
efficiency

Question 21.
Write in short about the various tests for selection,
Answer:
Following are the tests of selection :

1. Main test: The main basis of selection is main test. This test is generally taken in the written form. In this test, the following tests are taken :

(i) Ability test: The general ability of the candidate is highlighted in this test

(ii) Trade-test: This test is very important because through this test it is known that whether the candidate is competent for the work or not. As test is taken for the post of Draftsman by making drawings, for the post of operator by driving machines etc.

(iii) Interest test: In this test, candidate’s interest, hobby and habit are tested. For this, some questions relating to interest are given and candidates are asked to solve only 25% of questions. Candidates will solve only those 25% of questions, in which the candidate is having interest.

(iv) Personality test : In this test, candidate’s family, social, intellectual and emotional status are measured.

(v) Intelligence test: In the present day, this system has become very much popular. Through this test general intelligence of the candidate is measured so that it can be known that how intelligent the candidate is and how much he is cautious.

(vi) Language ability : Language ability has also great importance, because for work, the knowledge of local language is very important. If a person does not know English and is appointed at Air Port, then he can not perform his duty satisfactorily.

(vii) Aptitude test: For knowing the aptitude towards work, this test is important.

Question 22.
What do you mean by training on job ? Explain its type.
Answer:

On the job training : In this method of training workers learn by doing. On the job training aims at learning and earning simultaneously. Trainees work under the guidance and supervision of experts. The trainees follow the orders and instructions of experts. This method is less expensive. The trainee gets practical training more but lacks in theoretical training.

1. Apprenticeship training : This is one of the older method of training. It is still prevalent nowadays also. The main purpose of this training is to make the employees well versed in a specific art or technique. This method is used in those cases where long term training is required to attain proficiency to perform a particular task. In this method work is entrusted to each trainee according to prescribed programme and training is managed. Generally stipend is paid to the candidates. This training provides theoretical as well as practical knowledge to employees.

2. Job rotation method : In an enterprise when training is given to employee of various jobs, it is called as job rotation method. The main demerit of this method is that due to this method the employees lack specialization in one field. This type of method is very popular in banks. .

3. Training on training centres : First of all according to the necessity training centres are established in this method. These training centres are established by government or commercial enterprises. More stress is given on practical training than on theoretical training. Since training is given in training centres thus it does not effects the production.

4. Training by experienced workmen : Training by experienced workmen will be important and useful in that condition when experienced workmen requires helpers. The object of the training is to make the employee aware and believe in the ideologies of the working.

5. Training by supervisors : This type of training is provided by supervisors or experienced officers. These officers or supervisors are close to the trainee thus it helps the trainee to make communication with officers. This method helps in determining the abilities and efficiency of trainee during the work performed in training.

6. Internship training : The main aim of this training is to provide both theoretical and practical type of training with the joint effort of some technical institutes and business undertakings this type of training is provided to the students to learn theoretical as well as practical aspects of job. e.g., In medical colleges medical students are given theoretical knowledge and in hospitals they are provided practical knowledge due to which students gets the practical training of theoretical knowledge.

Question 23.
What is web publishing as external source of recruitment ?
Answer:
Internet is one of the most used source of recruitment. There are various websites like naukri.com, monster.com, career builder.com etc. specially designed and dedicated to
provide information about job seekers and job openings. Prospective employees and organization looking for desirable candidates may visit these websites to select the right person for the right job. The companies may have information about positions vacant on their own websites as well.

Question 24.
The functions of staffing should be done by all organizations and management efficiently.
Answer:
The work of staffing should be done by all managers effectively because if the suitable and efficient candidates are not selected then there will be wastage of time, material and efforts. Due to it the production will be reduced and cost of production will be increased. The manufactures will not be able to sell the product by profit. So it is essential that capable persons should be appointed for the work and they should be provided proper training.

Question 25.
What information is given to the workers under induction orientation programme ?
Answer:
Under induction orientation programme the following information can be given :

Short history of the company,
Policies of the company
Functional structure of the company
Location of the departments
Facilities provided to workers
Rights and duties of the new employees
Working hours
Rules of leaves
Rules related to discipline.

Question 26.
Distinguish between on the job and off the job training methods.
Answer:
Difference between On the job training and Off the training :

On the job training

By it we mean those methods which training is given on working places
In it during the working period the principle of learning through work is adopted
On the job training aims at learning and earning simultaneously
Trainees work under the guidance and supervision of experts during the work

Off the job training

By it we mean those methods by which training is given out side the working place
In it principles of learning are adopted before doing work
Off the job training aims at learning and earning separately
Employees work under the guidance of experts but they are already trained before the job.

Question 27.
Write the import acceptance of stalling.
Answer:

It helps in .achieving targets
It reduces cost of production
It helps in job satisfaction
It promotes individual growth
It helps in obtaining corporate recognition
Reduces labour turnover
Maximum productivity.

Question 28.
Explain the advantages of training to organization.
Answer:
Advantages of training to organization : Training is a process which aims to incorporate or improve the attitude, skills and abilities amongst employees to perform specific jobs.
Advantages of training to organization :

Systematic learning process
Enhances productivity
Develops future managers
Higher profits
Less wastage and reduced risks of accidents
Reduce absenteeism and employee turnover
Helps to adapt changes in business environment.

Question 29.
What is the advantage of training to employees ?
Answer:
Advantages to employee :

Growth opportunities
Higher income
Increases efficiency and reduces risks
High morale and job satisfaction
Makes new employees comfortable in new environment.

Question 30.
Throw light on reappointment of former employees in recruitment process as external source.
Answer:
Reappointment of former employees : Sometimes, employees are reappointed in an organization after a break in their service. Many a time, retiring personnel are also given an option to continue in the same firm, but at a lower remuneration. This proves beneficial to organization in two ways:

Experienced personnel become available,
Economy is achieved.

Question 31.
What do you understand by checking of reference ?
Answer:
In application form the candidates have to give two names of reference. If the candidate passes the interview then organization tries to find out about the characters of the candidates. For getting the information he gives preferences to references. Organization gets information about the characters of the candidates through other people or names of people given as references.
Physical verification : The complete bio-data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references, may be called for the candidate for the verification of character. If the candidate has worked somewhere else, then reference may be called from the previous employers.

Question 32.
What is the role of friends and relatives in recruitment ?
Answer:
Friends and relatives of present employees : Present employees invite their friends and relative for recruitment. This system is also beneficial for the organization, because recruitment of employees from acquainted persons, gives a fair chance to recruit good employees. Besides, for any error, done by the new employee, the present employee becomes responsible for such error.

Question 33.
Write the role of advertisement in recruitment.
Answer:
Advertisement is an important source of recruitment. It is an effective method of searching workers outside organization. Through advertisement large No. of people are attracted to words organization for middle level and lower level posts advertisement is done through newspapers, televisions employment news and other magazines. In advertisement information is given about nature of work, remuneration time of working etc.

Staffing Long Answer Type Questions

Question 1.
Explain internal and external sources of recruitment.
Answer:
(a) Internal sources : Internal source of recruitment refers to recruitment from within the enterprise. There are two important internal sources :

1. Promotion : Competent and experienced persons of the enterprise are promoted to higher post on the basis of their qualifications and seniority to fill up the vacancy. This system is almost applied by all the enterprises. Some posts, where experience is important in filled up by promotion only. For e.g., the post of the Principal in school or college, the post of Vice-Chancellor in a University.

2. Transfer: Transfer involves the shifting of an employee from one job to another. At the time of transfer, it is ensured that the employee to be transferred to the new job is capable of performing the jobs. Transfers become essential due to the following reasons :

To expose the person to a variety of jobs.
To avoid the monotony associated with the execution of a particular job.
To penalize him, sometimes transfer orders are issued as a penalty for an undesirable action.
A request by the employee himself, expressing his desire to work at some other work spot.
To.accommodate the excess staff at hand.

(b) External Sources: If the organization feels that the needed human resources are not available within the enterprise, it will have to depend on outside sources. The following are the external sources for recruitment:

1. Reappointment of former employees: Sometimes, ex-employees are reappointed in an organization after a break in their service. Many a time, retiring personnel are also
given an option to continue in the same firm, but at a lower remuneration. This proves beneficial to the organization in two ways :

Experienced personnel become available
Economy is achieved.

2. Friends and relatives of present employees: Present employees invite their friends and relatives for recruitment. This system is also beneficial for the organization, because
recruitment of employees from acquainted persons, gives a fair chance to recruit good employees. Besides, for any error, done by the hew employee, the present employee becomes responsible for such error.

3. Direct Recruitment in the office: This type of recruitment is done by the personnel department or selection section. For external appointment, information is affixed in the notice board of the office relating to vacant post, conditions, etc. Side by side, advertisement is also given in the daily newspaper, so that the best selection can be made.

4. Recruitment through employment exchange : Public employment exchanges are also an important source of recruitment of personnel. Job seekers register their names with these exchanges and the names of these persons will be supplied to business concerns on the basis of their requisition.

5. By advertisement: This system is very popular nowadays. Advertisement is made in newspapers, journals and trade and professional periodicals stating the available job, duties and responsibilities, emoluments, qualification and experience required for the job. This is one of the popular method used by business concerns to recruit personnel from external sources.

6. By trade unions : In some areas, trade unions are very influential and they think it correct to recruit labour through them so that trade union may be much stronger. Some producers, to reduce their burdens direct trade unions for recruitment. While making recruitment ‘through this system care should be taken that incompetent and inefficient person may not get appointment and from trade union there should be no pressure for recruiting such type of personnel.

7. Through educational and vocational institutes : Today, employment bureau has been opened in colleges and universities. In this, information related to employment are given to the desired people. Similarly, some commercial organizations are also in existence which help to get employment to unemployed persons.

8. Through other undertaking: In some commercial organizations, there is a system of exchange of employees. Its object is to exchange the art and talent in each other business. This recruitment is done for one or two persons. Sometimes when the promotional prospects become nil in one company and if promotional prospects are high in other company, a recruitment from the first company is done.

9. Retired defense personnel: The defense personnel retires at the age of 35 to 45 years. These personnel show great interest to get employment elsewhere. These personnel always remain disciplined, honest and laborious. Central and State Govt, also appoint defense personnel to some post (as Chancellor, Vice-Chancellor) which needs the quality of discipline. Hence, this is also an external source.

Question 2.
Distinguish between internal and external source of recruitment.
Answer:
Differences between Internal Sources and External Sources

Internal Sources

Vacant posts are filled with employees available within the organization in case of internal sources.
It is the most economical source because the organization does not have to spend any amount on search for sources of recruitment.
There is no risk for selection in high post as the organization has full information about the employees working there.
The major demerit of internal recruitment is that it stops the entry of young blood in the organization.
It is fastest and time saving process.
This recruitment system linders the entry of better qualified employees which hampers the sense of competition.
This process of recruitment encourages other works for improving their skills.

External Sources

It means inviting applications for filling up the vacancies from candidates outside the organization.
It is an expensive process as it involves . advertisement and at long selection process and training.
There is always a possibility of wrong selection as there is no complete information about the external candidates.
It helps the young and fresh talents to enter the company or organisation.
It is very lengthy and time consuming process.
Through this process new employees are recruited which develops competitive sport among existing and new employees.
When new employees are selected through this process a feeling of frustration and dissatisfaction develop. New organizations have to make use of the external source.

Question 3.
What advantages employees and organization get through training
Answer:
Advantages of training to organization : Training is a process which aims to incorporate or improve the attitude, skills and abilities among employees to perform specific jobs.

Advantages of training to organization :

Systematic learning process
Enhances productivity
Develops future managers
Higher profits
Less wastage and reduced risks of accidents
Reduce absenteeism and employee turnover
Helps to adapt changes in business environment.

Advantages to employee :

Growth opportunities
Higher income
Increases efficiency and reduces risks
High morale and job satisfaction
Makes new employees comfortable in new environment.

Question 4.
Explain the source of recruitment through chart
MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing image - 2
Question 5.
Distinguish between recruitment and selection.
Answer:

Recruitment

There are many sources of recruitment.
It is a process of searching employees.
Recruitment is positive.
Recruitment precedes selection.
Recruitment word is used generally for lower level employees.
The number of candidates are maxi-mum in recruitment.
The ultimate object of recruitment is to search employees.
Recruitment is limited to the extent of calling an application.
Recruitment is a means.
Recruitment is the first portion of a coin.

Selection

There is a specific process of selection of employees.
Selection and appointment are given for the present.
It is a negative process.
Appointment letter is issued after selection.
Selection word is used for all levels.
The number of candidates are minimum in comparison to recruitment.
The ultimate object of selection is to select employees and to appoint.
Selection is related with screening of applications, conducting different tests and to make final appointment for work.
Selection is itself a device.
Selection is the second portion of a coin.

Question 6.
What are various methods of training ?
Answer:
Following are the tests of selection :

1. Main test: The main basis of selection is main test. This test is generally taken in the written form. In this test, the following tests are taken :

(i) Ability test: The general ability of the candidate is highlighted in this test.

(iv) Personality test : In this test, candidate’s family, social, intellectual and emotional status are measured.

(vii) Aptitude test: For knowing the aptitude towards work, this test is important.

Question 7.
What do you mean by web publishing as external source of recruitment ?
Answer:
On the job training : In this method of training workers learn by doing. On the job training aims at learning and earning simultaneously. Trainees work under the guidance and supervision of experts. The trainees follow the orders and instructions of experts. This method is less expensive. The trainee gets practical training more but lacks in theoretical training.

3. Training on training centres : First of all according to the necessity training cen-tres are established in this method. These training centres are established by government or commercial enterprises. More stress is given on practical training than on theoretical training. Since training is given in training centres thus it does not effects the production.

Question 8.
What are internal sources of recruitment better than external sources ? Explain by giving reasons.
Answer:

Internal sources of recruitment are better than external sources because of the following reasons: ,

1. Knowledge of general rules : Due to service for many years, these employees know the rules and policies of the organization. So, it is not necessary to give them knowledge like a fresh employee. This saves time and money.

2. Morale is increased : Transparent policies help the employees in knowing as to when their promotions fall due and hence they strive hard for it. Thus, their morale increases.

3. Minimum cost: Expenses in this type of recruitment are kept to a minimum, as filling of jobs internally is cheaper as compared to getting candidate from external sources.

4. Increase in efficiency : In this system, all employees know that they will get promotion in future and side by side efficient and dedicated employee will be promoted shortly. With this hope, they work with full interest and dedication. Through this, their efficiency increases.

5. Reduction in training cost: Employees of the organization, know well the working methods and techniques of work. So, they don’t require training for general work. Training is imparted only to update them with the new technologies and working methods.

Question 9.
Differentiate between Training and Development.
Answer:
Differences between Training and Development:
MP Board Class 12th Business Studies Important Questions Chapter 6 Staffing image - 3

Question 10.
What is the importance of training ?
Or
Explain the need of training.
Answer:
1. Increase in productivity : The objective of training is to complete the work speedily and effectively. If a work is done speedily and effectively in an enterprise than production will increase which will bring profits to enterprise. Training boosts the morale of employees which increases the efficiency of employees’. This increases the production and productivity of enterprise.

2. Lesser accidents: Training provides complete knowledge about working of plants and machines to employees which increases the operational efficiency and chances of accidents are reduced.

3. Lesser supervision and direction : Supervision and direction is required for the effective completion of work. But after getting training employees have the knowledge about their work and equipment so lesser supervision and direction is needed.

4. Proper use of machines and equipment: Trained employees uses machines and equipment properly and minimizes wastage. A trained employee has the knowledge of operating machines and equipment methodically.

5. Boosts the morale of employees : Training provides self confidence and develops creativity of employees. Training helps in boosting the morale of employees which creates interest towards job.

6. Reduction in supervision cost: Trained employees become more disciplined and take more interest in their job. Employees do not require supervision and direction which reduces the supervision cost.

7. Quality goods : Training provides knowledge about use of machines and equipment which enables the employees to handle machinery and equipment in a better way by minimizing wastage. This helps in production of high quality goods at minimum cost.

8. Better chances of promotion : Trained employees can be promoted to higher posts or grades easily as compared to untrained employees since they have requisite qualification and training.

9. Adaptibility : Training makes the employees keen to Team new things. The trained employees can easily adapt to modem methods, techniques, etc. since training stimulates mental development of employees.

10. Helpful for new employees : Training is necessary for new employees because there is a lot of differences between theoretical and practical knowledge. Training provides practical knowledge to employees about work.

11. Helpful in facing competition: Through training the information about new methods is given and it also provides the knowledge about increasing the production in less time. Thin helps in reducing the cost of production which help in facing competition.

12. Industrial peace : After training each employee is indulged in the activities (Commercial) of enterprise which helps in maintaining industrial peace in enterprise. Training helps in establishing and maintaining harmonious industrial relation.
Above points make it clear that training has advantages both for the enterprise and the employees. Without training the entrepreneurs cannot reach the peak of success.

Question 11.
Write procedure of selection in short.
Or
Discuss the process of selection.
Answer:
“Selection is the process in which candidates for employment are divided into two classes. Those who are to be offered employment and those who are not.”
Selection involves choosing personnel to fill specific jobs in the organization on the basis of educational qualifications, training, skill, abilities and personality of the persons available for the jobs.
Selection process

1. Pretest: When the number of application of applicants are maximum and it is necessary to minimize the incompetent candidates by

Physical measurement
Intelligence and skill test, etc.

2. Blank application form : After pretest form a blank application is sent to those candidates who have qualified in the pretest. This form is prepared in a most scientific and technical manner. Mainly three types of informations are demanded :

Personal informations
Psychological informations
Working competency information.

3. Main test: This test is generally taken in the written form. In this test the following tests are taken:

Ability test
Trade test
Interest test
Personality test
Intelligence test
Language ability
Aptitude test.

4. Interview : No appointment is possible without interview. Interview is the best and most popular method. Interview has a great importance for the post of upper level. In this method, the team of selection and candidate, sit together and discuss with each other. The candidate is evaluated through this discussion.

5. Physical verification : The complete bio data of the candidate is called in this test. Side by side, police verification is made for the verification of candidate’s character. Two references may be called for the candidate for the verification. If the candidate is having any serious disease then his name is cancelled from the selection list.

6. Physical test : Physical test is done of those candidates, who have been finally selected. This is done about the general health of the candidate. Side by side, it is known whether the candidate is having any serious diseases as T.B., AIDS, etc. or not. If the candidate is having any serious disease, then his name is cancelled from the selection list.

Question 12.
Explain any five principles of selection.
Answer:
The principles of selection are :

1. Selection through competent persons : While selecting employees the selector must be a competent person so that an efficient employee can be selected.

2. Fixed standards: Standards should be fixed for selecting employees so that efficient employees can be selected.

3. Impartial : Selection should be fair and impartial. Selector should be far from pride and prejudice.

4. Flexibility : Selection process must be flexible in nature. According to needs of the enterprise and situation necessary changes can be made in selection process.

5. Rules and Laws : Selection process must be according to the rules of enterprise and laws of country.

Question 13.
Explain the methods of recruitment
Answer:
Following are the methods of recruitment:

1. employment of former employees : Employees who have already worked in the organization and have retired or have left the services for some reason posses sufficient experience and skill. Therefore, such employees are re-employed. The governments are also availing the services of retired employees by offering them re-employment. The expenditure for training of such employees is comparatively lesser because they are reliable and possess vast experience. They are especially useful for some technical posts. Often, such posts are filled for vacancies in higher grades.

2. Friends and relatives of present employees : The organization has full confidence in the employees and, therefore, through these employees their friends and relatives who are reliable and competent are employed, the present employees stand guarantee to new employees so recruited. Although the organization gets an opportunity to secure most suitable candidates because they are known to the present employees, sometime favoritism creeps in and incompetent candidate is selected.

3. Direct recruitment in the office : Such recruitment is often done by the Personnel or Services Department of the enterprise. A notice is displayed on the office notice board for such recruitment specifying the number of vacancies and terms and conditions of recruitment. Such notice is published in the daily newspapers also.

4. Recruitment through employment exchange : The employment exchanges are an important source of recruitment. They are established in every district place. They possess list of unemployed candidates with their address, qualification etc. Enterprise or the employers call for applications from such employment exchanges are make direct recruitment.

5. Recruitment through advertisement: Nowadays recruitment through advertisement is very popular and adopted by majority of enterprise. Transparency can be maintained through such recruitment. Organization where technically qualified candidates are needed, recruitment through advertisement is considered to be a better option. Today, recruitment in government or non-government organization through advertisement is considered as the best source. By advertising in newspapers, applications from suitable candidates can be procured in a large number.

6. Recruitment by trade unions : The trade unions also play an important role in recruitment. The recognized trade unions maintained a list of unemployed candidates and they arrange for suitable candidates at the time of recruitment. Reliable candidates may be available by recruitment through trade unions. The trade unions should, on their part, be careful and ensure that no incompetent candidate is recommended by them.

Question 14.
Describe the internal sources of recruitment. What are the advantages of it ?
Answer:
Internal sources of recruitment refers to recruitment from within the enterprise. There are two important internal sources :

1. Promotion : Competent and experienced persons of the enterprises are promoted to higher post on the basis of their qualification and seniority to fill up the vacancy. This system is almost applied by all the enterprise. Some posts where experience is important filling up by promotion only. For e.g. the post of principal in school or college, the post of Vice Chancellor in university.

2. Transfer : It involves the sifting of an employee from one job to another. At the time of transfer it is ensured that the employee to be transferred to the new job is capable of performing the jobs. Transfer becomes essential due to following reasons :

To expose the person to variety of jobs.
To avoid monotony associated with the execution of a particular job.
To penalize employees.
A request by employee himself, expressing his desire to work at some other work spot.
To accommodate the excess staff at hand.

Advantages : This source of recruitment has certain merits. They are :

2. Morale is increased : Transparent policies help the employees in knowing as to when their promotions fall due and hence they strive hard for it. Thus, their morale increases.

3. Minimum cost : Expenses in this type of recruitment are kept to a minimum, as filling of jobs internally is cheaper as compared to getting candidate from external sources.

Question 15.
What is meaning of Training ? What are its chief characteristics ?
Answer:
Meaning of Training : Training is a systematic programme to increase the knowledge, skills, abilities and aptitudes of workers to perform specific jobs. The purpose of training is to achieve a change in the behaviour of those trained and to enable them to do their jobs in a better way. Training is the act of improving or updating the knowledge and skill of an employee for performing a particular job. It is a two-way process because there must be someone to learn and someone to teach. The purpose of training is to mould the behaviour of people so that they can do their jobs in a better way.
Definitions :

1. According to Jucius, “The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees , to perform specific jobs, are increased.”

2. According to Dale, S. Beach, “Training is the organized procedure in which people team knowledge and/or skill for definite purpose.”

3. According to Flippo, “Training is the act of increasing the knowledge and skill of an employee for doing a particular job.”
Characteristics of Training : On the basis of meaning and definitions of training, following are the characteristics :

Training is a countinu us process of development of employees.
Training is necessary for all the managerial levels.
Training is essential for both the old and new employees.
Training increases the efficiency of employees.
Training and education are different.
Training is that expenses incurred on it constitute investment and not wastage.
It helps in achieving the objectives of organization.
Training provides self satisfaction to employees.
All round development of employees is possible through training.

Question 16.
Write the objectives of training.
Answer:

Objectives of training :

1. To make labour force useful: Training familiarises the employee with the object of the organization and work, he has to perform. Workers leam to operate equipments efficiently and increase their utility in the organization.

2. Increasing the efficiency of employees : Workers are acquainted with the real situations of works, its tools, equipments and environment. They have to work pracitically.

3. Familiarity with the working condition : Workers leam to work properly in the real situations of work. Labour force employed in the factory belongs to different parts of the country. They are unfamiliar with each other.

4. To increase in productivity : The objective of training is to complete the work speedily and effectively. If a work is done speedily and effectively in an enterprise than production will increase which will bring profits to enterprise. Training boosts the morale of employees which increase the efficiency of employees. This increases the production and productivity of enterprise.

5. Boosts the morale of employees : Training provides self confidence and develops creativity of employees. Training helps in boosting the morale of employees which creates interest to-words job.

Question 17.
Write the steps of staffing or process of staffing.
Answer:

1. Manpower planning: The first step of staffing process is to estimate manpower requirements. It is ensured that able employees are available in an organization to be placed in right position at the correct time. Manpower planning includes determining the employees to be required in future, which type of qualities are required in employees etc.

2. Recruitment: Edwin B. Fillipo said, explaining the recruitment of labours, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.” The need for employees is perennial in organization. Dale S. Beael has defined recruitment in this way, “Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labour from where the organization can draw when it needs additional employees.” In a big organization, a separate branch or personnel department assesses the manpower requirements and recruits them. This department is also called Recruitment Section. It is the second step in the process of staffing.

3. Selection : Selection is the third important step of staffing. Selection involves choosing personnel to fill specific jobs in the organization on the basis of educational qualifications, training, skill, abilities and personality of the persons available for the jobs. The selection process involves screening and testing of candidates who have applied for the jobs in the enterprises. Selection is necessary because some of the candidates who have applied may not be suitable for the jobs in the enterprise. Further, the number of candidates who are suitable for the jobs may be more than the vacant jobs to be filled.Dale Yoder has defined the word ‘selection’ in this way, “Selection is the process in which candidates for employment are divided into two classes : those who are to be offered employment and those who are not.”

4. Placement and Orientation : As per the terms and conditions and date of joining mentioned in the appointment letter, the candidate has to join the duty. From the very date of his joining, he is treated as an employee of that office. This newly appointed employee works with the senior employee. So that he may be well acquainted with the working methods.
Orientation means to acquaint the employees with their work and organization. In order to work as a team new employees are introduced to their subordinates and seniors.

5. Training and Development: In order to increase the efficiency and effectiveness of employees training and development facilities are imparted to the employees. Training benefits both the organization and employees. For different categories of employees suitable method of training should be adopted.

6. Determination of remuneration: The remuneration of selected employees should be determined according to the work performed by them. Remuneration may be paid in the form of wages, salaries, fees, allowances, etc.

7. Performance appraisal: The standards are established by the organization. The performance of employees are compared with the standards set. On the basis of their performance. The wages of employees are determined. Thus performance appraisal is an important activity in staffing process.

8. Promotion and Transfer : Competent and experienced persons of the enterprise are promoted to higher posts and shifting of an employee from one job to another are also
the major steps of staffing process.If the employees do not work according to standards set, they are also demoted from their job. Thus in process of staffing promotion, demotion, transfer, retirement, etc. are also included.

Question 18.
Write the characteristics of staffing.
Answer:
Characteristics :

1. Human nature: Staffing is the work done by man for man. In an enterprise though a certain work may be done by livestock, but staffing involves only recruitment, promotion and development of human being. Thus, staffing is concerned with human nature only.

2. Managerial function : Staffing is exclusively a managerial function. It is also called human resource management. In large organization, there is a separate personnel department for staffing which performs the functions from recruitment to development of personnel. Thus staffing is exclusively a managerial function.

3. Continuous activity : Staffing is a continuous activity. This involves continuous recruitment, placement, promotion, transfer, development etc.

4. A process : Staffing is a process in itself. It is concerned with organization structure and its various plans and policies.

5. Social nature : Staffing is exclusively the function of the society for the society. Management is in itself a social function therefore staffing exists within the society.

6. Recruitment at all levels : Staffing is done at all level stop management, middle management and lower level management. Through the method of recruitment may differ, but this is done at all levels of management.

7. Recruitment at present and future vacancies: With fulfilling the present vacancies, the vacancies likely to arise in future are also determined and the work relating to future vacancies is also completed in advance so that the vacancies may be filled as and when needed.

8. Staffing in broader sense : Staffing involves recruitment, promotion, demotion, retirement, transfer, training development, evaluation. Hence staffing has a broader meaning.

9. Complicated : Staffing work is very complicated because in this we have to face with people, personal pressure and tradition.

10. Policy fixation : In staffing apart from selection of employees policies related with their promotion, transfer, retirement, compensation etc is also framed.

Question 19.
Distinguish between education and training.
Answer:
Generally it is assumed that education and training are same but there are some differences between education and training. They are as follows :

Education is imparted according to a specific syllabus while in training the technique of performing work is important.
Education is a long term plan which is imparted every year while training is for short period.
In education there is a relationship between teacher and student which is a symbol of respect between both of them while in training between experts and trainee and both of them have formal relationship.
Education is related to general knowledge while training is related to knowledge of specific work.
Education is related with overall development of persons while training is related with the knowledge of specific area for persons.
Scope of education is wide while scope of training is narrow.
Education is related with school, colleges etc. which training is related with training centres.
Cost of education is borne by the person himself or the government while cost of training is borne by employer. .
Education is a symbol of increase in knowledge while training is a symbol of performing work artistically.

Question 20.
Write the principles of recruitment or policy of recruitment.
Answer:
Following are the principles of recruitment:

1. Recruitment work is a managerial prerogative : Every function relating to recruitment should be done by the top management, so that no conflict arises in the process of recruitment.

2. Information of vacant post from different departments: Top management should call for the information of vacant posts from different departments from time to time, so that recruitment may be done in accordance with the information.

3. Separate department for recruitment : Recruitment is very important. So, for this, experienced and efficient recruitment personnel should be appointed and a separate department or branch should be opened, which may be defined as a personnel department or recruitment branch.

4. Approval of new posts : If work increases and the need for additional posts is felt, then approval for creation of new posts should be obtained from the employers, as due to the creation of additional posts, economic burden increases.

5. Recruitment work by a competent officer : Employees are the backbone of any business. So, their selection should be made after deep thinking and by a competent officer. Recruitment experts from outside may be invited in case of need.

6. Recruitment as per work: Before recruitment, the nature and kind of work should be kept in mind and recruitment should be done accordingly and a competent and efficient person should be selected. For example, if any work is to be done by hand, then a selection of person, maimed by hand will be void.

7. Without partiality: Recruitment should always be impartial. Discrimination should not be present in the recruitment process.

8. Weight age to qualification : In recruitment, qualification should be taken into mind at first. In qualification, along with educational qualifications, sports, work experience etc.should be given weight age.

9. Suggestions from different sources : It is not wrong to call suggestions from competent and acquainted persons for recruitment and subsequently, selection can be made from these recruiters.

10. Different tests : Different tests such as physical test, intelligence test, work test, nature test etc. should be conducted before recruitment to facilitate selection.

MP Board Class 12 Business Studies Important Questions

MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements

October 31, 2019

MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements

Analysis of Financial Statements Important Questions

Analysis of Financial Statements Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Under which financial analysis, data of two or more than two years are written together for comparative study :
(a) Horizontal analysis
(b) Vertical analysis
(c) Cash analysis
(d) Ratio analysis.
Answer:
(a) Horizontal analysis

Question 2.
The analysis in which one figure is compared with an other figure and which shows the relationship between the two is called:
(a) Break even analysis
(b) Ratio analysis
(c) Trend analysis
(d) General analysis.
Answer:
(b) Ratio analysis

Question 3.
Break even point depicts:
(a) Profit
(b) Loss
(c) No profit no loss
(d) Gross profit.
Answer:
(c) No profit no loss

Question 4.
Analysis of reasons for changes in cash is:
(a) Fund flow statement
(b) Cash flow statement
(c) Trend Analysis
(d) None of these.
Answer:
(b) Cash flow statement

Question 5.
The main objective of financial statement analysis is:
(a) To know about profitability
(b) To check the financial statement
(c) To satisfy various interest holders
(d) To full fill the formalities.
Answer:
(a) To know about profitability

Question 2.
Fill in the blanks:

The point at which total cost is equal to total revenue is called ……………
The analysis depicting the changes in working capital during the year is called ……………
The method of financial analysis in which the relationship between various items of balance sheet and profit /
loss account is established is called …………… analysis.
Only such information are included in financial statement which can be expressed in terms of ……………
The analysis which is used to judge the trend of operations of an enterprise and computed in relation to a base year is called ……………

Answer:

Break even point
Fund flow analysis
Vertical
Money
Trend analysis.

Question 3.
Match the columns:
MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements - 1
Answer:

(b) Disclosing natural relationship by comparative study of mathematical expression
(a) To represent the changes in working capital
(c) Cash flow analysis and use of cash
(e) Break even as point.
(d) Trend analysis no profit and no loss

Question 4.
Write true or false:

Liquidity ratio refers to establishing relationship between current assets and current liabilities.
Fund flow statement does not represent the changes in working capital.
The point at which total cost is equal to total revenue is called break even point.
The position of cash balance and various uses of cash cannot be known through cash flow analysis.
The trend various items can be expressed in terms of percentage through trend analysis.

Answer:

True
False
True
False
True.

Question 5.
Write the answer in one word/sentence:

The method of reviewing and analysing financial statements for a specific period.
The other name of vertical analysis is.
The analysis which represent the trends of various items in form of percentages is called as.
The ratio which discloses relationship between current assets and current liabilities is called.
The point at which total cost is equal to total revenue is called.

Answer:

Vertical analysis
Common size analysis
Trend analysis
Liquidity ratio
Break even point.

Analysis of Financial Statements Very Short Answer Type Questions

Question 1.
What do you mean by analysis of financial statements ?
Answer:
Analysis of financial statements is a process in which the data of various head are compared so as to,-find out a relationship in an effective manner by classifying them in a simple form so that significant result may be obtained regarding financial strength or weakness of the company. The process of analysis and interpretation of financial statements help in deriving important conclusions and knowledge about business operations.

Question 2.
Write three characteristics of analysis of financial statements ?
Answer:
The following are the three characteristics of financial statements :

To represent the complex data present in financial statements in a simple form.
To divide the various items of financial statements under clear and appropriate heads.
To compare various items so as to find out changes among them and help in taking out appropriate inferences.

Question 3.
What do you mean by comparative statements ?
Answer:
The statements is which figures for two or more year are places side-by-side to facilitate comparison are called comparative statements. The figures pertaining to production, expenditure, sale profit etc. are shown comparatively side by side so as to draw conclusions about the profit earning capacity liquidity profitability and financial soundness of the concerning business.

Question 4.
What is fund flow Statement?
Answer:
Fund flow statement is a statement prepared in a summary form which brings into light the cause of changes in working capital during the year. Such statements comprises the sources of funds, uses of funds and the changes in net working capital. This statement also reach the various sources from where the firm received funds and the areas in which these funds were utilized.

Question 5.
What is cash flow analysis ?
Answer:
Cash flow analysis shows inflows and outflows of cash in a concern during a particular accounting period. Cash means cash and cash equivalents, while flow means movement of cash. It explains reasons for the changes in cash position of an enterprise. This analysis helps the managers / directors to find out why there was scarcity of cash in business despite. The firm earned profit and why there is cash balance available despite the firm incurred loss.

Question 6.
What is break even point analysis ?
Answer:
The term break even point refers to that point at which the total cost are just equal to total sales. A business concern neither earns profit nor suffers a loss at this point. It is also called Neutral point.

Question 7.
Name the different tools of financial analysis.
Answer:
The following tools or devices are used for financial analysis :

Comparative financial statement.
Trend analysis.
Common size statement.
Fund flow statement.
Cash flow statement.
Ratio analysis.
Break even point analysis.

Question 8.
What do you mean by liquid assets ?
Answer:
Liquid assets refers to that assets which can be converted into cash without any diminution in the value of asset for example cash in hand, cash at bank (these two assets are itself liquid), bill receivable and short investment. For calculating liquid asset from current asset stock and prepaid expenses left out.

Analysis of Financial Statements Short Answer Type Questions

Question 1.
Explain objectives of financial statement analysis.
Answer:
The following are the main objectives of financial statement analysis.

1. Knowledge of earning capacity or profitability of business:
The main object of analysis is to know whether there is appropriate profit on invested capital or not. It enables computation of earning capacity of the business and estimation of future earning capacity as well.

2. Knowledge regarding solvency:
The financial analysis helps to determine the short-term as well as long form solvency of the concern.

3. Knowledge of financial position:
Analysis of financial statement enables us to know the financial strength of the business enterprise. Through analysis of financial statement we can ascertain whether requisite funds will be available for purchasing fined assets from integrate resources of business or not.

4. To know about capability of payment of interest and dividend:
Through analysis of financial statement we can easily ascertain the capability of business under taking to pay interest and dividend regularly. We can ascertain whether there is sufficient profit for this purpose.

5. Knowledge of trend of business:
Analysis of financial statements help us to make a comparative study of balance sheets of business of various years. The trends of purchase, sale gross profit etc. can be easily compared with that of previous year. Such compression help us to investigate the weakness, irregularity and remedial measures can be taken for improvement.

6. Valuable information for management:
One of the principal objective of the analysis of financial statement is to know the weakness or drawbacks of the undertaking. This analysis makes valuable data and information available to the management for further decision and planning.

Question 2.
Explain the importance of analysis of financial statements.
Answer:
Financial analysis is usually significant to the following categories of persons:

1. Significance for management:
The management needs to know what progress of
business has been towards its objectives of profitability, economic soundness turned etc. it is from the analysis they can be made available. On the basis of facts of analysis the management is able to compare the business with other business. Financial analysis reveals the shortcomings which can be removed by making effective policies. ‘

2. Significance for investors:
Investors invest their money with the expectation of a good return. They take decision on the basis of information disclosed for profitability, solvency and trend of business. They can compare the business with other business and the analysis of current year with previous year of the same business and finalize their plans regarding investment.

3. Significance for creditors and debenture holders:
Short term creditors are interested to know liquidity position of the business. This can be obtained through solvency ratios. Similarly the long – term creditors particularly debenture holders want to know the timely return of interest on debentures and the security of money invested in the form of debentures. They can obtain the knowledge regarding long-term solvency of the company through the analysis of the financial statements.

4. Significance for Government:
Government has to take various decisions for the economic development of the country. Government frames the industrial policy. The financial analysis is helpful for the formation and execution of financial and economic policies of Government.

5. Significance for financial institutions:
Financial institutions play important role in industrial and commercial development. Bank, life insurance corporation, ICICI bank, HDFC bank. Industrial development bank advance mid term and long – term loan to business concerns. For deciding the rate of interest, return of loan etc. they take the help of analysis of financial statements.

6. Significance for others:
Financial analysis has importance to other categories of society. The employees are interested to know the profitability of concern. On this basis they can demand for increase in salary. Economists, researches, analysts, tax authorities also receives the useful information through analysis of financial statements of business concerns.

Question 3.
Explain the limitations of financial statement analysis.
Answer:
The following are the limitations of financial statement analysis:

1. Limitations of financial statements:
Financial statement themselves have a number of limitations and so the analysis of financial statements suffers from limitations. Financial statement in fact, are based on accounting concepts and communications and so the analysis of such statement clear not prove meaningful.

2. Affected by window dressing:
It is generally seen that window dressing is adopted in financial statements to conceal the bad aspect of financial position. It adversely affects then analysis of financial statements.

3. Based on past events:
Financial statements represents the record of part events and historical facts. It is based on previous year data and events. The result of financial analysis can not disclose the possibilities of future. Hence, the conclusions derived from them can not be used for the purpose of forecasting.

4. Ignores the changes in price level:
If price level changes are not taken into consideration, the results of analysis of financial statements may be misleading Ratios of different years will not be useful for comparison if the prices of commodities are different. The ratios may improve due to increase in prices whereas the actual efficiency remains unchanged. Correct results of two financial years can be obtained when the price one. Stable other set the result of analysis of financial statement may be misleading.

5. Effect of personal decision of analysts:
Analysis of financial statements are affected by personal decisions taken by accountants analysts themselves such as methods of charging depreciation valuation of stock, writing off revenue expense’s etc The rationality of such decisions depends upon the ability, honesty and experience of the analysts. Thus, financial statements and conclusions derived from then may be biased.

6. Ignores the qualitative element:
Analysis of financial statements does not measure the qualitative aspects of business concern. It disclose only those information which can be expressed in terms of money. It does not exhibit the skill, technical know how and efficiency of staff and management. Hence the analysis is one-sided measure. It shows one sided performance of a business undertaking.

7. Limited use of single year’s analysis of financial statements:
If analysis of financial statements is done for one year then from that analysis correct conclusion cannot be taken. Hence, it is necessary to analysis financial statements of few years.

Question 4.
Write the characteristics of analysis of financial statement
Answer:
Following are the characteristics of financial analysis:

To present the accounting data in a simple and understandable form.
To classify the items of profit and loss account and balance sheet in convenient and related groups.
To make comparison between different groups to interpret different conclusions.
Financial analysis clarify the changes in the financial items.
There are various techniques for financial analysis.

Question 5.
Prepare comparative Income statement from the following particulars for the year ended 31st March 2017 and 31st March 2018.
MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements - 2
Solution:
Comparative Income Statement

Question 6.
From the following details make out a comparative income statement:
MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements - 4
Solution:
Comparative Income Statement

Question 7.
From the following in formation prepare a comparative statement for the year ended 31^st March 2008 and 31st March 2009.
MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements - 7

Solution:
Comparative Income Statement For the year ended 2008 and 2009:
MP Board Class 12th Accountancy Important Questions Chapter 9 Analysis of Financial Statements - 8

MP Board Class 12 Accountancy Important Questions

MP Board Class 11th Physics Solutions Chapter 1 भौतिक जगत

October 31, 2019

MP Board Class 11th Physics Solutions Chapter 1 भौतिक जगत

भौतिक जगत अभ्यास के प्रश्न एवं उनके उत्तर

प्रश्न 1.1.
विज्ञान की प्रकृति से संबंधित कुछ अत्यंत पारंगत प्रकथन आज तक के महानतम वैज्ञानिकों में से एक अल्बर्ट आइंस्टाइन द्वारा प्रदान किए गए हैं। आपके विचार से आइंस्टाइन का उस समय क्या तात्पर्य था, जब उन्होंने कहा था “संसार के बारे में सबसे अधिक अबोधगम्य विषय यह है कि यह बोधगम्य है?
उत्तर:
ब्रह्माण्ड अत्यन्त जटिल है एवं इसमें होने वाली घटनाएँ भी बहुत जटिल हैं लेकिन विज्ञान के अनेक नियम ऐसे हैं जो इन सभी घटनाओं की व्याख्या पूर्णत: करते हैं। अतः जब प्रथम बार कोई घटना देखते या सुनते हैं तब वह अबोधगम्य होती है लेकिन जब हम उस घटना से जुड़े सिद्धान्त नियम इत्यादि का गहन विश्लेषण करते हैं तो वह घटना हमारे लिए बोधगम्य हो जाती है। इस प्रकार भौतिक जगत से जुड़े प्रत्येक तथ्य की सुस्पष्ट व्याख्या विज्ञान विषय में उपलब्ध है। जब कभी भी हम किसी तथ्य से जुड़े वैज्ञानिक दृष्टिकोण को जानना चाहते हैं तो हम उसे जान लेते हैं। इसी कारण जटिलतम परिघटना भी हमारे लिए आश्चर्यजनक नहीं होती है। इस प्रकार हम कह सकते हैं कि आइंसटाइन का कथन तर्क संगत है।

प्रश्न 1.2.
“प्रत्येक महान भौतिक सिद्धान्त अपसिद्धांत से आरंभ होकर धर्मसिद्धांत के रूप में समाप्त होता है”। इस तीक्ष्ण टिप्पणी की वैधता के लिए विज्ञान के इतिहास से कुछ उदाहरण लिखिए।
उत्तर:
अपसिद्धान्त ऐसे तथ्य हैं जो स्थापित नहीं होते हैं जबकि धर्म सिद्धान्त से अर्थ स्थापित विचार हैं जिन पर सामान्यत: कोई प्रश्न नहीं उठता है। जैसे – प्रकाश – वैद्युत नियम प्रारम्भ में एक अपसिद्धान्त के रूप में आया था लेकिन अन्तत: यह एक धर्म सिद्धान्त के रूप में परिवर्तित हो गया था।

प्रश्न 1.3.
“संभव की कला ही राजनीति है”। इसी प्रकार “समाधान की कला ही विज्ञान है”। विज्ञान की प्रकृति तथा व्यवहार पर इस सुन्दर सूक्ति की व्याख्या कीजिए।
उत्तर:
सभी राजनीतिज्ञ, चाहे वे दुनिया के किसी भी भाग से सम्बन्धित हों, हमेशा कुछ भी कहने को तैयार रहते हैं। राजनीतिज्ञों के अनुसार, प्रत्येक कार्य, घटना इत्यादि सभी कुछ सम्भव है एवम् इसके पीछे जो कारण है वह सिर्फ उनके शब्दों का जाल होता है। इसी कला से वे जनता में अपनी प्रसिद्धि प्राप्त करते हैं। अर्थात् राजनीति सम्भव की कला है। जो कार्य किसी भी तरह होना सम्भव न हो उसे भी राजनीतिज्ञ अपनी बात के माध्यम से सम्भव बना सकते हैं। हालांकि विज्ञान में ऐसा नहीं होता है। विज्ञान में प्रश्न का तार्किक उत्तर उपलब्ध है जिसकी जाँच बार-बार की जा सकती है।

उदाहरण के लिए विज्ञान कहता है कि प्रकाश सरल रेखा में गमन करता है, तो इसका कारण एवम् इसकी जाँच हम कभी भी और कितनी ही बार कर सकते हैं। इसके अलावा वैज्ञानिक अध्ययन के बाद असम्भव एवम् जटिल प्रक्रियाओं को भी बोधगम्य कर सकते हैं। अर्थात् हम कह सकते हैं कि विज्ञान समाधान की कला है जबकि राजनीति सम्भव की कला है।

प्रश्न 1.4.
यद्यपि अब भारत में विज्ञान तथा प्रौद्योगिकी का विस्तृत आधार है तथा यह तीव्रता से फैल भी रहा है, परन्तु फिर भी इसे विज्ञान के क्षेत्र में विश्व नेता बनने की अपनी क्षमता को कार्यान्वित करने में काफी दूरी तय करनी है। ऐसे कुछ महत्वपूर्ण कारक लिखिए जो आपके विचार से भारत में विज्ञान के विकास में बाधक रहे हैं?
उत्तर:
भारत में विज्ञान के विकास में बाधा उत्पन्न करने वाले कुछ महत्वपूर्ण कारक निम्नलिखित हैं

हमारे देश में वैज्ञानिकों को लक्ष्यों की प्राप्ति करने के लिए शैक्षणिक स्वतन्त्रता प्राप्त नहीं है।
विदेशों में वैज्ञानिकों, इन्जीनियों, डॉक्टर्स इत्यादि का देशान्तर भ्रमण, क्योंकि विदेशों में उन्हें उत्कृष्ट सुविधाएँ, वेतन इत्यादि प्राप्त हो जाते हैं जबकि हमारे देश में इन सुविधाओं एवम् उच्च वेतन का प्राप्त करना आज भी सम्भव नहीं है।
हमारे देश में अनुसन्धान एवम् तकनीक के प्रबन्धन में प्रशासनिक हस्तक्षेप की अधिकता भी विज्ञान के विकास में बाधा है।
हमारे देश में अनुसन्धानकर्ताओं एवम् उद्यमियों के मध्य सामंजस्य स्थापित नहीं है।

प्रश्न 1.5.
किसी भी भौतिक विज्ञानी ने इलेक्ट्रॉन के कभी भी दर्शन नहीं किए हैं। परन्तु फिर भी सभी भौतिक विज्ञानियों का इलेक्ट्रॉन के अस्तित्व में विश्वास है। कोई बुद्धिमान परन्तु अंधविश्वासी व्यक्ति इसी तुल्यरूपता को इस तर्क के साथ आगे बढ़ाता है कि यद्यपि किसी ने देखा’ नहीं है परन्तु ‘भूतों’ का अस्तित्व है। आप इस तर्क का खंडन किस प्रकार करेंगे?
उत्तर:
किसी भी भौतिक विज्ञानियों ने इलेक्ट्रॉन के कभी दर्शन नहीं किए हैं, परन्तु फिर भी सभी भौतिक विज्ञानियों का इलेक्ट्रॉन के अस्तित्व में विश्वास है। इसका मुख्य कारण है कि इस कण के अस्तित्व के पक्ष में बहुत – से प्रमाण उपलब्ध हैं जैसे विद्युत धारा का प्रवाह, अणुओं की विभिन्न आकृतियों एवम् आकारों का होना, विभिन्न रासायनिक यौगिकों में ध्रुवणता होना, क्षम का होना इत्यादि। जबकि भूतों का कोई भी भौतिक प्रभाव नहीं होता है, जिसे प्रायोगिक रूप से सत्यापित कर सके। अतः हम कह सकते हैं कि इन दोनों की पारस्परिक तुलना एक निरर्थक कार्य है।

परश्न 1.6.
जापान के एक विशेष समुद्र तटीय क्षेत्र में पाए जाने वाले केकड़े के कवचों (खोल) में से अधिकांश समुरई के अनुश्रुत चेहरे से मिलते जुलते प्रतीत होते हैं। नीचे इस प्रेक्षित तथ्य की दो व्याख्याएँ दी गई हैं। इनमें से आपको कौन – सा वैज्ञानिक स्पष्टीकरण लगता है?

1. कई शताब्दियों पूर्व किसी भयानक समुद्री दुर्घटना में एक । युवा समुरई डूब गया। उसकी बहादुरी के लिए श्रद्धांजलि के रूप में प्रकृति ने अबोधगम्य ढंगों द्वारा उसके चेहरे को केकड़े के कवचों पर अंकित करके उसे उस क्षेत्र में अमर बना दिया।

2. समुद्री दुर्घटना के पश्चात् उस क्षेत्र के मछुआरे अपने मृत नेता के सम्मान में सद्भावना प्रदर्शन के लिए उस हर केकड़े के कवच को जिसकी आकृति संयोगवश समुरई से मिलती-जुलती प्रतीत होती थी, उसे वापस समुद्र में फेंक देते थे। परिणामस्वरूप केकड़े के कवचों की इस प्रकार की विशेष आकृतियाँ अधिक समय तक विद्यमान रहीं और इसीलिए कालान्तर में इसी आकृति का आनुवंशत: जनन हुआ। यह कृत्रिम वरण द्वारा विकास का एक उदाहरण है।

(नोट : यह रोचक उदाहरण कार्ल सागन की पुस्तक “दि कॉस्मॉस” से लिया गया है। यह इस तथ्य पर प्रकाश डालता है कि प्रायः विलक्षण तथा अबोधगम्य तथ्य जो प्रथम दृष्टि में अलौकिक प्रतीत होते हैं वास्तव में साधारण वैज्ञानिक व्याख्याओं द्वारा स्पष्ट होने योग्य बन जाते हैं। इसी प्रकार के अन्य उदाहरणों पर विचार कीजिए)
उत्तर:

दिए गये प्रश्न में दोनों कथनों में से कथन
प्रेक्षित तथ्य का वैज्ञानिक स्पष्टीकरण देने में पर्याप्त रूप में समर्थ है।

प्रश्न 1.7.
दो शताब्दियों से भी अधिक समय पूर्व इंग्लैण्ड तथा पश्चिमी यूरोप में जो औद्योगिक क्रांति हुई थी उसकी चिंगारी का कारण कुछ प्रमुख वैज्ञानिक तथा प्रौद्योगिक उपलब्धियाँ थीं। ये उपलब्धियाँ क्या थीं?
उत्तर:
सन् 1750 से अर्थात् औद्योगिक क्रान्ति से पूर्व, कुछ सरल यन्त्र एवं मशीनें ही प्रचलन में थीं, जिनके कार्य करने की दर काफी कम एवम उत्पादित माल का स्तर काफी खराब था लेकिन औद्योगिक क्रान्ति के परिणामस्वरूप कुछ नवीन मशीनों का विकास हुआ जिनके द्वारा उत्पादन लागत में कमी आई एवम् वैमार माल की उत्कृष्टता में उन्नति हुई। औद्योगिक क्रान्ति की प्रमुख वैज्ञानिक एवम् प्रौद्योगिकीय उपलब्धियाँ निम्नवत् हैं

स्पिनिंग गेनी (Spinning Genny) सन् 1764 में हारग्रीव्ज ने इस मशीन का आविष्कार किया। इससे कटाई – कार्य में तेजी आई।
भाप इंजन (Steam Engine) सन् 1769 में जेम्सवॉट ने इसका आविष्कार किया। इसकी सहायता से औद्योगिक इकाइयों को देश के भीतरी भागों में समुद्री किनारों से दूर स्थान प्राप्त हो सका था।.
पावरलूम (Powerloom) सन् 1785 में कार्ल-राइट ने इसका आविष्कार किया। यह माप शक्ति चालित मशीन है। इसे चलाकर कपड़ों की बुनाई का कार्य किया जाता था।
विस्फोटक पदार्थ की खोज से ना सिर्फ आर्मी में सहायता मिली बल्कि इससे खनिज विस्फोट में भी सहायता मिली है।

प्रश्न 1.8.
प्रायः यह कहा जाता है कि संसार अब दूसरी औद्योगिकी क्रांति के दौर से गुजर रहा है, जो समाज में पहली क्रांति की भाँति आमूल परिवर्तन ला देगी। विज्ञान तथा प्रौद्योगिकी के उन प्रमुख समकालीन क्षेत्रों की सूची बनाइए जो इस क्रांति के लिए उत्तरदायी हैं।
उत्तर:
विज्ञान तथा प्रौद्योगिकी के उन प्रमख समकालीन क्षेत्रों की सूची निम्नवत् है जो इस क्रांति के लिए उत्तरदायी हैं, जो समाज में पहली क्रांति की भाँति आकूल परिवर्तन ला देगी

जैव प्रौद्योगिकी
सुपर कम्प्यूटर
सूचना प्रौद्योगिकी
विद्युत दुर्बल बल के सिद्धान्त का विकास
प्रकाशिक तन्तु।

प्रश्न 1.9.
बाईसवीं शताब्दी के विज्ञान तथा प्रौद्योगिकी पर अपनी निराधार कल्पनाओं को आधार मानकर लगभग 1000 शब्दों में कोई कथा लिखिए।
उत्तर:
माना कि एक हवाई जहाज 500 प्रकाश वर्ष दूर स्थित तारे की ओर गतिमान है। माना यह हवाई जहाज विद्युत मोटर जिसमें अतिचालक तार लगा है, में संचित धारा से चलता है। ब्रह्माण्ड में, माना कि एक क्षेत्र ऐसा है जहाँ इतना अधिक ताप है, जिस कारण मोटर के विद्युत तारों का अतिचालक गुण नष्ट हो जाता है। इस स्थिति में, एक अन्य हवाई जहाज जिसमें द्रव्य तथा अद्रव्य भरा है, पहले हवाई जहाज को चलाता है जिस कारण यह तारे की ओर गतिमान रहता है।

प्रश्न 1.10.
‘विज्ञान के व्यवहार’ पर अपने ‘नैतिक दृष्टिकोणों’ को रचने का प्रयास कीजिए। कल्पना कीजिए कि आप स्वयं किसी संयोगवश ऐसी खोज में लगे हैं जो शैक्षिक दृष्टि से सेचक है परन्तु उसके परिणाम निश्चित रूप से मानव समाज के लिए भयंकर होने के अतिरिक्त कुछ नहीं होंगे। फिर भी यदि ऐसा है तो आप इस दुविधा के हल के लिए क्या करेंगे?
उत्तर:
प्रत्येक वैज्ञानिक खोज, प्रकृति के रहस्यों को प्रदर्शित करती है एवम् इन रहस्यों के सत्य को समाज के सामने रखता है। सत्य एक सापेक्षिक पद है। सत्य का प्रदर्शन इस प्रकार होना चाहिए कि कोई भी खोज जो मानव समाज के नैतिक मूल्यों को हानि पहुँचा सकती हो, उसे एकदम रोक देना चाहिए। जैव – प्रौद्योगिकी मानव-कल्याण हेतु बहुत उपयोगी है लेकिन जीवित प्राणियों की क्लोनिंग नीति-असंगत है। इस अनुसंधान को आगे बढ़ाने से पूर्व हमें समाज के सामने यह तथ्य रखना चाहिए कि क्या यह अनुसन्धान जारी रखना मानव के लिए भयंकर तो नहीं है। यदि ऐसा है तो अनुसन्धान को एकदम से रोक देना चाहिए।

इसके अलावा कोई खोज आज भयंकर हो लेकिन भविष्य में यह लाभप्रद सिद्ध हो सकती है। इसके लिए, सबसे पहले यह जरूरी है कि वैज्ञानिक खोज के गलत प्रयोग के सम्बन्ध में लोक विचार लेने चाहिए। यह सार्थक कदम किसी वैज्ञानिक खोज के गलत प्रयोग को रोक सकता है। अतः उन वैज्ञानिक खोजों जो समाज के नैतिक मूल्यों के लिए भयंकर साबित हो सकती हैं, को समाज की अच्छाई के लिए रोक देना चाहिए।

प्रश्न 1.11.
किसी भी ज्ञान की भाँति विज्ञान का उपयोग भी, उपयोग करने वाले पर निर्भर करते हुए, अच्छा अथवा बुरा हो सकता है। नीचे विज्ञान के कुछ अनुप्रयोग दिए गए हैं। विशेषकर कौन-सा अनुप्रयोग अच्छा है, बुरा है अथवा ऐसा है कि जिसे स्पष्ट रूप से वर्गबद्ध नहीं किया जा सकता। इसके बारे में अपने दृष्टिकोणों को सूचीबद्ध कीजिए

आम जनता को चेचक के टीके लगाकर इस रोग को दबाना और अन्ततः इस रोग से जनता को मुक्ति दिलाना। (भारत में इसे पहले ही प्रतिपादित किया जा चुका है।
निरक्षरता का विनाश करने तथा समाचारों एवं धारणाओं के जनसंचार के लिए टेलीविजन।
जन्म से पूर्व लिंग – निर्धारण।
कार्यदक्षता में वृद्धि के लिए कम्प्यूटर।
पृथ्वी के परितः कक्षाओं में मानव-निर्मित उपग्रहों की स्थापना।
नाभिकीय शस्त्रों का विकास।
रासायनिक तथा जैव-युद्ध की नवीन तथा शक्तिशाली तकनीकों का विकास।
पीने के लिए जल का शोधन।
प्लास्टिक शल्य क्रिया।
क्लोनिंग।

उत्तर:

अच्छा
अच्छा
बरा.
अच्छा
अच्छा
बुरा
बुरा
अच्छा
अच्छा
इसे स्पष्ट रूप से वर्गबद्ध नहीं किया जा सकता।

प्रश्न 1.12.
भारत में गणित, खगोलिकी, भाषा विज्ञान, तर्क तथा नैतिकता में महान विद्वत्ता की एक लंबी एवं अटूट परम्परा रही है। फिर भी इसके साथ एवं समान्तर, हमारे समाज में बहुत – से अंधविश्वासी तथा रूढ़िवादी दृष्टिकोण व परम्पराएँ फली – फूली हैं और दुर्भाग्यवश ऐसा अभी भी हो रहा है और बहुत – से शिक्षित लोगों में व्याप्त हैं। इन दृष्टिकोणों का विरोध करने के लिए अपनी रणनीति बनाने में आप अपने विज्ञान के ज्ञान का उपयोग किस प्रकार करेंगे?
उत्तर:
हमारे देश में समाज में व्याप्त अन्धविश्वासी एवम् रूढ़िवादी दृष्टिकोण व परम्पराएँ दूर करने के लिए रणनीति बनाने में विज्ञान के ज्ञान का उपयोग निम्नवत् रूप में किया जा सकता

1. स्थानीय स्तर पर जनता को आपसी बातचीत, सभाओं, क्लबों इत्यादि के माध्यम से गलत एवम् असत्य विश्वासों को दूर करने के लिए जानकारियों का प्रचार करना लाभदायक होगा।

2. छात्रों को दी जाने वाली विद्यालयी शिक्षा के पाठ्यक्रम में दैनिक जीवन से जुड़े अनुभवों की स्पष्ट व्याख्या देने वाली पाठ्य सामग्री का समावेश अति आवश्यक है अर्थात् शिक्षा की दैनिक जीवन में व्यक्त विभिन्न घटनाओं की व्याख्या देने में समर्थ होना चाहिए। इस प्रकार शिक्षा का उद्देश्य तर्कसंगत हो जाएगा एवम् वह भविष्य में भी लाभदायक सिद्ध होगी।

3. इन्जीनियर्स, वैज्ञानिकों, शिक्षाविदों, एवम् डॉक्टर्स इत्यादि द्वारा विभिन्न परिघटनाओं के सही-सही कारणों एवम् अन्धविश्वासों व गलत धारणाओं को समाप्त करने के लिए प्रदान की गई जानकारियों के अलग – अलग कार्यक्रमों द्वारा शहरी व ग्रामीण जनता के सामने प्रस्तुत करना लाभदायक होगा।

4. समाचार पत्र, रेडियो, टेलीविजन, इण्टरनेट इत्यादि माध्यमों द्वारा लोगों में व्याप्त अपूर्ण ज्ञान, भ्रान्तियों, रूढ़िवादिता, अन्धविश्वास इत्यादि को समाप्त करने में किया जाना एक हितकारी प्रयास है। इस कार्य के लिए विभिन्न कार्यक्रमों जैसेनाटकों, क्विज, विचार-गोष्ठियों, वर्कशॉप, समर स्कूल, विन्टर-स्कूल आदि का आयोजन कर संकेत दें।

प्रश्न 1.13.
यद्यपि भारत में स्त्री तथा पुरुषों को समान अधिकार प्राप्त हैं, फिर भी बहुत-से लोग महिलाओं की स्वाभाविक प्रकृति, क्षमता, बुद्धिमत्ता के बारे में अवैज्ञानिक विचार रखते हैं तथा व्यवहार में उन्हें गौण महत्व तथा भूमिका देते हैं। वैज्ञानिक तर्कों तथा विज्ञान एवं अन्य क्षेत्रों में महान महिलाओं का उदाहरण देकर इन विचारों को धराशायी करिए, तथा अपने को स्वयं, तथा दूसरों को भी समझाइए कि समान अवसर दिए जाने पर महिलाएँ पुरुषों के समकक्ष होती हैं।
उत्तर:
प्राकृतिक रूप से स्त्री तथा पुरुषों में कुछ अन्तर अवश्य होते हैं। परन्तु जिम्मेदारी निभाने, कार्य करने, बुद्धिमत्ता तथा सोच समझने में स्त्री व पुरुष में कोई अन्तर नहीं होता है। जन्म से पूर्व एवम् जन्म के पश्चात् आहार के पोषक तत्वों का एक बड़ा भाग मानव मस्तिष्क के विकास में महत्वपूर्ण योगदान करता है। यह मस्तिष्क स्त्री अथवा पुरुष किसी का भी हो सकता है। जब हम स्त्रियों के प्राचीन इतिहास एवम् वर्तमान स्थिति का अध्ययन करें तो हम देखते हैं कि स्त्रियों की स्थिति हमेशा से ही सम्मानजनक. रही है एवम् उन्होंने अनेक उत्कृष्ट कार्य किए हैं। ये स्त्रियाँ हर कार्य करने में सक्षम हैं एवम् किसी भी रूप में पुरुषों से कम नहीं है। जब कभी भी स्त्रियों को अवसर मिलता है चौंकाने वाले परिणाम सामने आए हैं।

महर्षि अत्रि की पत्नी सती अनुसूइया, झाँसी की रानी लक्ष्मीबाई, रानी कर्मवती, नूरजहाँ, मैडम क्यूरी, सरोजिनी नायडू, कल्पना चावला, प्रिंसेज डायना, मार्गेट थ्रेचर, इन्दिरा गाँधी, श्रीमती भण्डानाइके, श्रीमती चन्द्रिका कुमार तुंगे, बछेन्द्री पाल इत्यादि अनेक नाम स्त्रियों के स्वर्णिम इतिहास का उल्लेख करते हैं। आजकल सानिया मिर्जा का नाम भी शीर्षस्थ स्थान पर है। इसका तात्पर्य है कि इन स्त्रियों को अवसर मिलने पर, इन्होंने अपनी अपूर्व क्षमता का परिचय दिया। आज हमारे देश में रक्षा सेवाओं के द्वार भी स्त्रियों के लिए खुले हुए हैं। इस क्षेत्र में भी स्त्रियों ने अपनी कार्यदक्षता सिद्ध की है।

अतः हम कह सकते हैं कि समान अवसर दिए जाने पर महिलाएँ भी पुरुषों के समकक्ष परिणाम देती हैं।

प्रश्न 1.14.
“भौतिकी के समीकरणों में सुन्दरता होना उनका प्रयोगों के साथ सहमत होने की अपेक्षा अधिक महत्वपूर्ण है।” यह मत महान ब्रिटिश वैज्ञानिक पी० ए० एम० डिरैक का था। इस दृष्टिकोण की समीक्षा कीजिए। इस पुस्तक में ऐसे संबंधों तथा समीकरणों को खोजिए जो आपको सुन्दर लगते हैं।
उत्तर:
डिरैक के कथन में कोई विसंगति नहीं है। भौतिकी में एक समीकरण जो प्रयोगों के साथ सहमत है, उसे निश्चित ही सरल एवम् बोधगम्य होना चाहिए। यही उसकी सुन्दरता की कसौटी है। इसका तात्पर्य है कि जो समीकरण सरल एवम् समझने योग्य होगी, वह सुन्दर मानी जाएगी। जैसे आइन्सटीन की द्रव्यमान ऊर्जा समतुल्यता समीकरण E = mc², द्रव्यमान के ऊर्जा तथा ऊर्जा के द्रव्यमान में स्थानान्तरण को समझाती है। यह समीकरण सरल एवम् समझने योग्य है। अर्थात् यह एक सुन्दर समीकरण है।

प्रश्न 1.15.
यद्यपि उपरोक्त प्रकथन विवादास्पद हो सकता है, परन्तु अधिकांश भौतिक विज्ञानियों का यह मत है कि भौतिकी के महान नियम एक ही साथ सरल एवं सुन्दर होते हैं। डिरैक के अतिरिक्त जिन सुप्रसिद्ध भौतिक विज्ञानियों ने ऐसा अनुभव किया, उनमें से कुछ के नाम इस प्रकार हैं : आइंस्टाइन, बोर, हाइसेनबर्ग, चन्द्रशेखर तथा फाइनमैन। आपसे अनुरोध है कि आप भौतिकी के इन विद्वानों तथा अन्य महानायकों द्वारा रचित सामान्य पुस्तकों एवं लेखों तक पहुँचने के लिए विशेष प्रयास अवश्य करें। (इस पुस्तक के अंत में दी गई ग्रंथ – सूची देखिए)। इनके लेख सचमुच प्रेरक हैं।
उत्तर:
MP Board Class 11th Physics Solutions Chapter 1 भौतिक जगत 1
प्रश्न 1.16.
विज्ञान की पाठ्य पुस्तकें आपके मन में यह गलत धारणा उत्पन्न कर सकती हैं कि विज्ञान पढ़ना शुष्क तथा. पूर्णतः अत्यंत गंभीर हैं एवं वैज्ञानिक भुलक्कड़, अंतर्मुखी, कभी न हँसने वाले अथवा खीसें निकालने वाले व्यक्ति होते हैं। विज्ञान तथा वैज्ञानिकों का यह चित्रण पूर्णतः आधारहीन है। अन्य समुदाय के मनुष्यों की भाँति वैज्ञानिक भी विनोदी होते हैं तथा बहुत-से वैज्ञानिकों ने तो अपने वैज्ञानिक कार्यों को गंभीरता से पूरा करते हुए अत्यंत विनोदी प्रकृति तथा साहसिक कार्य करके अपना जीवन व्यतीत किया है। गैमो तथा फाइनमैन इसी शैली के दो भौतिक विज्ञानी हैं। ग्रंथ सूची में इनके द्वारा रचित पुस्तकों को पढ़ने में आपको आनन्द प्राप्त होगा।
उत्तर:
गैमो एवं फाइमैन द्वारा रचित पुस्तक निम्नलिखित हैं

1. गैमो द्वारा रचित ‘Mr Tompkins in paperback : Cambridge Universing Press (1987)”

2.फाइनमैन द्वारा रचित “Surely you are joing : Mr. Reynman, Bantan Books (1986)”.
उपरोक्त पुस्तकों के पढ़ने पर ज्ञात होता है कि वैज्ञानिक भी अन्य मनुष्यों की भाँति ही विनोदी होते हैं। इनके अलावा सी० वी० रमन, होमी जे० भाभा, भी विनोदी स्वभाव के भौतिकवादी रहे हैं। हमारे देश के कुछ नेता जैसे-मुरली मनोहर जोशी, वी० पी० सिंह इत्यादि भी भौतिकविद् रहे हैं।

MP Board Class 11 Physics Solutions

MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company

October 31, 2019

MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company

Financial Statements of a Company Important Questions

Financial Statements of a Company Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Following are included in the financial statement of a commercial firm:
(a) Balance Sheet
(b) Profit & Loss statement
(c) Cash flow statement
(d) All of these.
Answer:
(d) All of these.

Question 2.
The General methods adopted for financial analysis are:
(a) Horizontal Analysis
(b) Vertical Analysis
(c) Ratio Analysis
(d) All of these.
Answer:
(d) All of these.

Question 3.
Annual Report of a company is issued for:
(a) Director
(b) Auditors
(c) Shareholders
(d) Management.
Answer:
(c) Shareholders

Question 4.
Comparative Analysis is also known as:
(a) Active Analysis
(b) Horizontal Analysis
(c) Vertical Analysis
(d) External Analysis.
Answer:
(b) Horizontal Analysis

Question 5.
Balance Sheet of a firm disclose the information related to financial condition for:
(a) A specific given period
(b) During a specific period
(c) A specific period
(d) None of these.
Answer:
(a) A specific given period

Question 6.
In which meeting is it compulsory for a company to produce it’s balance sheet and profit and loss account compulsory:
(a) Extra ordinary general meeting
(b) Debenture, holder’s meeting
(c) Annual general meeting
(d) Meeting of board of directors.
Answer:
(c) Annual general meeting

Question 7.
Which of the following is prepared in horizontal or vertical format:
(a) Profit and loss account
(b) Balance sheet
(c) Income and expenditure account
(d) Cash account.
Answer:
(b) Balance sheet

Question 8.
Which of the following capital is not included for totaling of balance sheet:
(a) Paid – up capital
(b) Issued capital
(c) Authorised capital
(d) Share capital.
Answer:
(c) Authorised capital

Question 9.
Which of the following liability is shown below the balance sheet separately :
(a) Current liability
(b) Fixed liability
(c) Contingent liability
(d) Overdraft.
Answer:
(c) Contingent liability

Question 10.
The amount of preliminary expenses and underwriting commission in shown under which heading and which side of balance sheet:
(a) Liability side
(b) Assets side under the head of miscellaneous expenses
(c) None of the sides
(d) None of these.
Answer:
(b) Assets side under the head of miscellaneous expenses

Question 2.
Fill in the blanks:

Generally analysis mean …………….. of data.
Meaning of formulation is …………….. of data.
Comparative Analysis is also known as …………….. analysis.
The General form of analysis is also known as …………….. analysis.
The actual inflow and outflow of cash in an organization / institution is known as …………….. analysis.
Underwriter is that person, firm or company who promises to …………….. the shares of a company.
The part of profit which is kept for unforeseen exigencies of future is called ……………..
The part of profit which is kept for distribution to shareholders is called as ……………..
The dividend which is proposed for distribution by company in the following year is called ……………..
The arrangement of employees provident fund is called as ……………..

Answer:

Simplification
Described
Horizontal
Vertical
Cash flow
Purchase
Reserve
Divisible profit
Proposed dividend
Provision.

Question 3.
Match the columns:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 1
Answer:

(a) Underwriter
(c) Expenses incurred during formation of company
(b) External liability of a company
(e) The amount which has not been claimed by shareholders.
(d) Amount which is kept for distribution to share holders

Question 4.
Write true or false:

Cash flow statement is included in the financial statement of a commercial organization.
Comparative statement is a form of horizontal analysis.
Ratio analysis establish relation between two financial statements.
Financial analysis are used by the creditors only.
The financial analysis provide assistance to derive the accurate decision to the analyse.
Preliminary expenses are incurred during dissolution of a company.
Discount on issue of shares and debentures are shown is assets side of balance sheet.
Preliminary expenses are considered as capital expenditure.
The balance sheet of a company is prepared as per schedule VI and part I of company’s act 1956.
Preparation of balance sheet is not mandatory for a company.

Answer:

True
True
True
False
True
False
True
False
True
False.

Question 5.
Write the answer in one word / sentence:

Which are the two basic financial statement of a company ?
What are non current Assets ?
Give two examples of current liabilities.
What is contingent liabilities ?
Write two items of the heading ‘Provision’.
The capital beyond which the company cannot issue it’s shares.
The person who promotes a company ?
The capital which has been received by the company ?
What condition of a company is disclosed by balance sheet of company ?
Which type of expenditure is underwriting commission ?

Answer:

Profit & Loss A / c, Balance Sheet
Assets kept for more than one year
Creditors, Bills Payable
Liabilities which depend on the occurrence of certain event in fixture
Provision for Taxation, Provision for Divident
Authorised capital
Promoters
Paid-up capital
True and correct
Deferred Revenue expenditure.

Financial Statements of a Company Short Answer Type Questions

Question 1.
What do you mean by contingent liabilities ? Give two examples of it
Answer:
These are liabilities which will exist or not, it will depend on any future incident. They are not shown in the liability side of balance sheet. But they are shown below the balance sheet as a foot note. These are the claims of companies outside parties. It can’t be accepted as a loan.

Example:
Amount of bills discounted from the bank, partial payment of shares, etc.

Question 2.
Give the definition of financial statement and five examples of fixed assets.
Answer:
The financial statements are those statements which are prepared to ascertain the profit or loss during an accounting period and position of assets and liabilities at a certain date. These statements are the outcomes of the summarizing process of accounting and are the sources of information based on which conclusion are drawn about the profitability and financial position of a company definitions:

John N. Myer:
‘The financial statement provide a summary of account of a business enterprises, the balance sheet reflecting the assets, liabilities and capital as on a certain date and the income statement showing the results of operations during a certain period.”

As per the Companies Act 2013:
‘‘Financial statement will present a true and appropriate view of the positioning details to the company or companies when it will follow the schedule writing in Section 133 and in the prescribed format of Schedule III of the Act.”

Fixed Assets:
“These are those assets which are used in the business for long duration such as land and buildings, plant and machinery, Furniture, Vehicles, Livestock, Goodwill, Trademark, patent etc.

Question 3.
What do you mean by current assets ?
Answer:
Current assets:
Under this heading we include all such assets which are expected to be converted in cash within a year from the date of balance sheet. The items that come under this heading are divided into following two subheadings :
(A) Current assets
(B) Loans and advances.

(A) Current assets:
The items included in this subheading are as under:

Accrued interest on investment
Stores and spare parts
Loose tools
Stock in trade
Work-in-progress
Sundry Debtors:
- Debts outstanding for more than six months
- Other debts Less : Provision for doubtful debts,
Cash and bank balance. In case of debtors, their particulars should also be given regarding their quality
such as; (i) Debts fully secured
Debts secured on personal security and
Debts considered doubtful or bad.

Question 4.
Differentiate between reserves and provisions.
Answer:
The various differences between reserves and provisions are as follows:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 2

Question 5.
Write a short note on:

Preliminary expenses
Unclaimed dividend.

Answer:
1. Preliminary expenses:
While commencing a company, apart from the value of assets, other expenses which are incurred are called preliminary expenses. It includes expenses in acquisition of buildings, printing expenses of various documents, commission given for the transaction of assets, brokerage and other sundry expenses.

2. Unclaimed dividend:
That amount of declared dividend, where no claim has been made so far, is called unclaimed dividend. It should be paid within a year.

Question 6.
Rearrange the following items under three heads :

Fixed Assets
Current Assets
Loans and Advances.

Livestock, leasehold land, Cash in hand, Loose tools, Trademark, Work-in progress, Goodwill, Stores and spare parts, Plant, Trademark, Furniture, Interest accrued, Bills receivables, Vehicles, Bank balance, Debtors, Loans to subsidiaries, Land.
Solution:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 3

Question 7.
Show how the assets and liabilities are arranged properly according to Section VI, Part-I of Companies Act of 1956 from the following information
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 4

Answer:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 5

Question 8.
Under what headings the following items are shown in the Balance sheet of the company:

Goodwill
Unclaimed dividend
Provision for tax
Securities premium A/c
Loose tools.

Solution:
Balance Sheet of Company:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 6

Question 9.
Under what headings will you show following items in balance sheet:

Goodwill
Bill receivable
Capital reserve
Sundry creditors
Building
Sundry Debtors
Debentures
Issued capital.

Answer:

Goodwill — Fixed assets.
Bills receivable — Current assets
Capital Reserve — Reserves and provisions
Issued capital — Share capital
Sundry creditors — Current liabilities
Building — Fixed assets
Sundry Debtors — Current assets
Debentures — Secured loan.

Financial Statements of a Company Long Answer Type Questions

Question 1.
What are the main items of liability side of balance sheet of a company ?
Answer:
Main Items of Balance Sheet and their Details: The main items of balance sheet as mentioned in the part I of the schedule VI of the Indian Companies Act 1956 is as under:

Main items of liability side:
In the balance sheet, the items of liabilities are mentioned under the following heads:

1. Share capital:
The share capital should be classified into following categories:

(i) Authorized capital:
This is the maximum amount of capital which a company can collect by way of issuing of shares. Under this heading the number and the nominal value of shares is given. This amount of capital is not included in the total of the liability side since only a part of the authorized capital is issued for subscription.

(ii) Issued capital:
It is that part of the authorized capital which has actually been issued to the public for subscription so far. It mentions each category of capital, i.e., equity or preference shares which has been issued. Issued capital can never be greater than the authorized capital.

(iii) Subscribed capital:
Subscribed capital is that part of issued capital for which the applications have been received from the public. Subscribed capital is also not included in the total of the liability side. To keep it separate from the total, double close lines are drawn below this amount.

(iv) Called-up capital: It is that part of subscribed capital which has actually been called from the public. The called-up capital can never exceeds the subscribed capital.

(v) Paid-up capital: It is that part of called-up capital which has actually been paid by the public in response to the calls made by the company.

2. Reserve and surplu:
Reserves are the part of profit which is accumulated out of undistributed profits. The reserves and surplus should be categorically mentioned in the balance sheet as:

Capital Reserve
Capital Redemption Reserve
Share Premium Account
Other specific reserves
Proposed additions to reserves
Sinking fund.

After making other necessary appropriations the balance of profit and loss account is also shown under this head.
In case of each of the above reserves, the additions and deductions made since last balance sheet must be disclosed clearly. The debit balance (if any) of the profit and loss account must be shown as deducted from unspecific free revenue reserve. The surplus of profit and loss account (after appropriation) should also be shown under this head.

3. Secured loans:
Loan obtained against pledge of assets as security or against guarantee of repayment made by the company is called secured loan. It includes debentures as per their condition of repayment, bank loans, loans and advances from subsidiary companies, other loans advances, etc. All secured loans must be shown under proper subheadings. Interest accrued and due on unsecured loans are to be included under the appropriate subheadings.

In addition to it the terms of redemption or conversion of loans should also be mentioned along with the earliest date of Redemption or conversion. Under this heading the loan taken from the directors, managing directors / agents, secretaries, etc. should be shown separately. Against each item of loan the security offered should be specified in the balance sheet.

4. Unsecured loan:
When a company borrows loan without giving any security, such loans are known as unsecured loans. The items included under this heading are; Fixed deposits, loans and advances from subsidiary companies, short-term loans and advances from banks or from others. Other loans and advances from banks. Here, by short-term loan we mean such loans which are due for repayment within a period of one year from the date of the balance sheet.

Unsecured loans from directors, managers, managing directors, secretary, treasures and managers should be shown separately. Interest due, but not paid on unsecured loans should be shown along with the concerned loan amount.

5. Current liabilities and provisions:
This item is divided into two main parts namely:

(i) Current liabilities:
All such liabilities which are payable within a period of one year are included under this heading. The items included in it are; bills payable, sundry creditors, advance income, outstanding expenses, unclaimed dividends, interest accrued but not due on loans, etc.

(ii) Provisions:
It is a charge against profit to meet certain known liability for which the exact burden cannot be ascertained with substantial accuracy. In case, such provision exceeds the actual liability the excess is treated as reserve. Provision is maintained even in the years of loss, since it is a charge against the profit.

Under this head the items like provision for taxation, proposed dividend, provision for contingencies, for P.F. of the employees, for other staff benefit schemes such as employees insurance and pension, etc. are included in it.

Question 2.
Explain the items which are shown on the asset side of balance sheet under the main heads of public limited company.
Answer:
The following items are included on the asset side of the balance sheet of a public limited company under the main heads:

1. Fixed assets:
Under this heading, fixed assets of the company are shown in their cost price. Appreciation or depreciation are added or deducted.

2. Investments:
To earn income securities are purchased for business purpose. They are shown under this heading.

3. Current assets, loans and advances:
This heading is also divided into two subheads:

(i) Current assets:
It means such assets which can be changed into cash within the year or immediately. Stock of goods, sundry debtors, etc. are entered in this head.

(ii) Loans and advances:
Under this heading, it is entered bills receivable, loans and advances from subsidiary companies etc. are shown.

4. Miscellaneous expenditure:
Under this heading, preliminary expenses, commission and brokerage on shares and debentures etc. are shown.

5. Profit and loss account:
When there is a debit balance of profit and loss A/c, it is shown under this heading.

Question 3.
Write the names of accounts which are shown on the assets side and liabilities side of balance sheet of a company under main heads in the horizontal form.
Or
Write some important items (only main headings) showed as Indian company’s Act 1956 schedule VI-I in balance sheet.
Answer:
Under the ahead heads, the items are shown on the assets and liabilities side of a company balance sheet:
Balance Sheet of a Ltd. Company:
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 7

Question 4.
Write some elements of sound or good financial statement
Or
Write the characteristic of an ideal financial statement.
Answer:
Elements of sound financial statement are as follows:

Simplicity : It should be simple and easy to understand. The size of this kind of financial statement not so big.
Accuracy: It should be accurate whatever the conclusion drawn from it are accusable and effective.
Understandable: It should be easy to understand. Any body can understand.
Easy: It should be easy to calculate. An average person can understand and able to calculate it.

Question 5.
Write short notes on following:
(A) Current liabilities and provisions
(B) Current assets, loans and advances.

Answer:
(A) Current Liabilities and Provisions: There are two parts under this head:
(a) Current Liabilities:
These are those liabilities which are repayable within one year. Current liabilities include bills payable, sundry creditors, advance payments, unclaimed dividends, etc. These are shown in part A.

(b) Provisions:
‘Provisions’ are shown in part B and they include provision for taxation, proposed dividend, provident fund, provision for insurance and pension schemes etc.

(B) Current Assets, Loans and Advances:
These are the assets which are likely to be converted into cash within a year from the date of the balance sheet. These are divided into two parts:

(a) Current Assets:
These include, (i) Interest accrued on investments, stores and spare parts, loose tools, stock-in-trade, works-in-progress, sundry debtors (Debts out standing for more than 6 months; other debts), cash and bank balance.

(b) Loans and Advances:
Cash loans given to different persons, advances against purchase of goods and various expenses by the company etc., are included in it. These items should be shown in the balance sheet under separate subheadings:

Advances and Loans to Subsidiaries,
Bills of exchange,
Advances recoverable in cash or in kind for value to be received eg., Rates, Taxes, Insurance etc.
Balance with customs, port trust etc.

Question 6.
Explain in details, the importance of financial statements.
Answer:
Following are the importance of financial statements for various parties:

1. Management:
The management uses accounting information to take various decision. The management has the responsibility to protect die owner’s investment and to increase its value by managing the business efficiently so that it earns maximum profit.

2. Investors:
The investor includes both long term and short term investors. The main purpose of these investors is to protect the appropriate money and earn enough income on it. For this they need much information about the company’s economic status, profit earing capacity, current value of shares.

3. Bank and other lending institutions:
As bank and financial institutions provide loan to the business they are interested in knowing the performance of the business to know whether it is making progress as projected to ensure the safety and recovery of the advanced I loan.

4. Employees and trade unions:
The employees and trade union gets financial status and financial information from these statements. The various facilities and employee’s demand depend on the financial condition of the business enter prize. Earning capacity are affected by wages, allowances, bonus etc.

5. Government and government agencies:
The government came to know about the economic development of the country from the financial statements. The government agencies studies the security of the interest of the shareholders. The government calculate the national income from the information collected through these statement and also ensures that the legal provisions in the articles are being followed or not.

Question 7.
Explain the limitations of financial statements.
Answer:
The limitation of financial statements are as follows:

1. Do not reflect current situation:
Financial statements are prepared on the basis of historical cost. Since the purchasing power of money is changing, the value of assets and liabilities shown in financial statements do not reflect current market situation.

2. Assets may not realize:
Accounting is done on the basis of certain conventions. Some of the assets may not realise the state value if liquidation is forced on the company. Assets shown in the balance sheet reflect only unexpired cost.

3. Bias:
Financial statements are the outcomes of the recorded facts, accounting concepts and convention used and personal judgement made in different situations by the Accountants. Hence, bias may be observed in the results and the financial position depicted in financial statements may not be realistic.

4. Aggregate information:
Financial statements show aggregate information but not detailed information. Hence they may not help the users in decision making sufficiently.

5. Vital information missing:
Balance sheet does not disclose information relating to loss of markets and cease of agreements which have an important impact on the enter prize.

6. No qualitative information:
Financial statements contain only monetary information but not qualitative information like industrial relations, industrial climate, labor relation, quality of work etc.

Question 8.
Draw the specimen of income statement and explain its elements.
Answer:
Profit and Loss A/c
For the year ending on of company Ltd.
MP Board Class 12th Accountancy Important Questions Chapter 8 Financial Statements of a Company - 8

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures

October 31, 2019

MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures

Issue and Redemption of Debentures Important Questions

Issue and Redemption of Debentures Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
X Ltd. bought assets worth Rs. 28,80,000. It issued debentures of Rs. 100 each at 4 % discount as purchase consideration. Number of debentures to be issued:
(a) 30,000
(b) 28,800
(c) 32,000
(d) None of these.
Answer:
(a) 30,000

Question 2.
Convertible debentures cannot be issued at discount if:
(a) They are to be converted immediately
(b) They are not to be converted immediately
(c) None of these.
Answer:
(a) They are to be converted immediately

Question 3.
Discount on issue of debentures will be shown in balance sheet under the heading:
(a) Profit / Loss statement
(b) Other non-current Assets
(c) Debenture Account
(d) None of these.
Answer:
(b) Other non-current Assets

Question 4.
Excess of assets over liabilities at the time of purchasing a business is transferred to:
(a) General Reserve
(b) Capital Reserve
(c) Seller’s Account
(d) None of these.
Answer:
(b) Capital Reserve

Question 5.
Own debentures means those debentures which the company:
(a) Issue to its promoters
(b) Issue to its director
(c) Purchase in open market as investment
(d) None of these.
Answer:
(c) Purchase in open market as investment

Question 6.
Profit on cancellation of owned debentures is transferred to:
(a) Profit & Loss statement
(b) Debenture Redemption Reserve
(c) Capital Fund
(d) None of these.
Answer:
(c) Capital Fund

Question 7.
When debentures are redeemed out of profit, then an equal amount is transferred to:
(a) General Reserve
(b) Debenture Redemption Reserve
(c) Capital Fund
(d) None of these.
Answer:
(b) Debenture Redemption Reserve

Question 8.
In Debenture Redemption Reserve, Profit on the sale of Investment is credited to :
(a) Profit & loss statement
(b) Debenture Redemption Reserve Account
(c) General Reserve Account
(d) None of these.
Answer:
(a) Profit & loss statement

Question 9.
Debentures can be redeemed by:
(a) Purchase in market
(b) Conversion into shares
(c) Change in Debenture
(d) All of these.
Answer:
(d) All of these.

Question 10.
Interest allowed on debenture is:
(a) Fixed
(b) Conversion into shares
(c) Accumulating
(d) None of these.
Answer:
(a) Fixed

Question 11.
Balance of Debenture Redemption Reserve account is transferred after the redemption of all the debentures:
(a) Capital Reserve
(b) General Reserve
(c) Profit & Loss Appropriation A/c
(d) None of these.
Answer:
(b) General Reserve

Question 12.
Debenture holders come under the category of: (MP 2010,13,15)
(a) Owners
(b) Creditors
(c) Debtors
(d) None of these.
Answer:
(b) Creditors

Question 13.
Debentures which may be transferred by more delivery:
(a) Secured
(b) Bearer
(c) Ordinary
(d) None of these.
Answer:
(b) Bearer

Question 14.
The unpaid calls of debentures is called as:
(a) Calls in arrears
(b) Calls in advance
(c) Prepaid calls
(d) None of the above.
Answer:
(a) Calls in arrears

Question 15.
The fixed liability of a company is to pay to debenture:
(a) Profit
(b) Interest
(c) rent
(d) Commission.
Answer:
(b) Interest

Question 16.
Income from debentures is:
(a) Fixed
(b) Not fixed
(c) More
(d) None of these.
Answer:
(a) Fixed

Question 17.
For the company, discount on issue of debenture is a: (MP 2009 Set A)
(a) Fictitious asset
(b) Liabilities
(c) Loss
(d) Real asset.
Answer:
(a) Fictitious asset

Question 18.
Kinds of debentures is/are :
(a) One
(b) Three
(c) Four
(d) Two
Answer:
(c) Four

Question 19.
Period of payment of internet on debenture is:
(a) 3 months
(b) 6 months
(c) 1 years
(d) Any time
Answer:
(b) 6 months

Question 20.
The amount of discount on issue of debenture is:
(a) Capital loss
(b) Revenue loss
(c) Capital expenditure
(d) Revenue expenditure.
Answer:
(a) Capital loss

Question 2.
Fill in the blanks:

Payment to debentures is done in the of company.
The debentures which are redeemed first before paying any other type of debentures
are called
Debenture holders does not interfere in of company. (MP 2013, IS, 17)
Debentures are generally issued for
Generally interest on debenture is paid after expiry of a period of months. (MP 2009 A)
Redemption of debenture means of the amount of debenture by the company.
Creditors are company’s
Debentures which can be changed into shares are called (MP 2014)
Debentures is a written of debt. (MP 2016)

Answer:

life time
first debentures
management
cash
six
payment or redemption
first debentures
convertible debentures
acknowledgement.

Question 3.
Match the following
MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures - 1
Answer:

(e) Registered debentures
(d) Secured debentures (MP 2013)
(c) Convertible debentures (MP 2013)
(b) Redeemable debentures (MP 2014)
(a) Preferred
(f) Debenture. (MP 2011)

MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures - 2
Answer:

(e) Creditors of a company (MP 2017)
(g) Fictitions assets.
(b) Capital received
(a) 10%
(c) Secured loan

Question 4.
Write true or false:

A debenture is a written document issued with the company’s seal acknowledging a debt.
Debentures are part of owner’s equity.
Interest paid on debentures is paid out of the company’s profit.
Debentures cannot be issued at discount more than 10% of its face value.
Redeemable debentures are those debentures which are paid after a specific period.
Fixed debentures are also known as irredeemable debentures.
Debentures cannot be converted into shares.
Debentures cannot be issued at premium.
A pledged security is an assistance security.
Loss on issue of debenture is a revenue loss.
Debenture holders are the owners of a company.
Debenture holders received interest at a fixed rate.
When calls amount is not received in debentures, then it is forfeited.
Debentures are also issued for other consideration apart from cash. (MP 2013)
Company’s debenture is generally transferable. (MP 2009 Set A)
Debenture holders get dividend at fixed rate. (MP 2010)
Interest is paid on debentures only in case of profit.
Debenture holders are called share holders of a company. (MP 2011,15)
Mortgaged debentures are called secured debentures. (MP 2016)
The nature of debentures is that of short period loan. (MP 2016)
Debenture can be redeemed on premium. (MP 2017)

Answer:

True
False
True
True
True
True
False
False
True
False
False
True
False
True
True
False
False
False
True
False
True.

Question 5.
Write the answer in one word/sentence:

Name the document which either creates a debt or acknowledges it.
Name the debentures which may be redeemed only at the time of winding up. (MP 2010)
Purchase consideration – Net Assets = ?
Issue of debentures of Rs. 100 at Rs. 125 and the difference 25 is called as.
What are those debentures called whose name are registered in the company’s register? (MP 2009 Set A)
Name the debentures which can be converted into shares. (MP 2010)
What are those debentures called which are transferred by more delivery.
How many debenture will be issued @ Rs. 100 each when a company purchased a building at a cost of 5 lakhs ? (MP 2011)
Issue of debentures of Rs. 100 at Rs. 95 and the differences of Rs. 5 is called as. (MP 2013)
Documents issued for long-term loan are called.

Answer:

Debentures
Irredeemable debentures
Goodwill
Premium
Registered debentures
Convertible debentures
Bearer debentures
5000 debentures
Discount
Debenture.

Issue and Redemption of Debentures Very Short Answer Type Questions

Question 1.
What do you mean by debenture ?
Answer:
Debenture is a written certificate for taking loan from the public by the company on which the company put its seal and interest is paid at a predetermined rate on a fixed date.

Question 2.
What do you mean by bearer debentures ?
Answer:
The debentures which are transferable by simply delivery are called bearer debentures. The payment of it is made to the holder of it. No provision is maintained for the issue of such debentures.

Question 3.
What do you mean by Redeemable debentures ?
Answer:
The debentures which are repayable after a stipulated period or after a fixed date is called redeemable debentures.

Question 4.
What do you mean by Irredeemable debentures ?
Answer:
The debentures which are not redeemable during the lifetime of the company are called irredeemable debentures.

Question 5.
What do you mean by Secured debentures ?
Answer:
The debentures that are issued against the security, some specific assets or all the assets of the company are known as secured debentures. The assets undercharged cannot be sold without the consent of the debenture holders or till the time such debentures are re¬deemed completely.

Issue and Redemption of Debentures Short Answer Type Questions

Question 1.
What do you mean by debentures ? When can debentures be issued ?
Answer:
The word debenture is derived from the Latin word ‘Debere’ which means to owe. The term debenture is used to signify the acknowledgement of a debt given under the seal of the company and containing a contract for the repayment of the principal sum at a specified date and for the payment of interest at a fixed rate until the principal sum is repaid.

Whenever a company needs funds for a long period it can issue, debenture on the security of its assets, as an acknowledgement of debt from the public. It can be done in open market and applications can be invited. The person who buys debentures is called debenture holder.

Question 2.
Explain advantages of debentures to the company.
Answer:
Following are the advantages of issuing debenture :

1. Sufficient funds are raised : At the event of need of additional capital, a company may raise sufficient fund through issuing of debentures to the public.

2. No intervention in management: A debenture holder has no right to intervene in the management of the company since they do not enjoy voting right.

3. Fixed rate of interest: The rate of interest to be allowed on debentures is fixed at the time of issuing debentures. Hence, a company may make appropriate arrangement to pay interest in advance.

4. More dividends to shareholders : Due to issuing of debentures to full fill the need of additional capital, the shareholders may get more dividend since paying of interest to debenture holders costs cheaper than paying dividend, had the company issued additional shares to cater the need of additional capital.

5. Convenience in repayment: A company may conveniently arrange for the repayment of debentures to be made after a specific period of time.

Question 3.
How many types of debentures are there ? Any four.
Answer:
The following are the types of debentures :

Redeemable debenture
Irredeemable debenture
Bearer debenture
Registered debenture
Mortgaged debenture
Unsecured debenture
Convertible debenture
Non-convertible debenture.

Question 4.
Differentiate between a shareholder and a debenture holder.
Answer:
The differences between a shareholder and a debenture holder:
MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures - 3

Question 5.
Explain secured and unsecured debentures.
Answer:
1. Secured debentures:
The debentures that are issued against the security, some specific or all the assets of the company are known as secured debentures. In other words, such debentures create charge on the assets of the company. Sometimes such charge may be a floating charge on all assets of the company. The assets undercharge cannot be sold without the consent of the debenture holders or till the time such debentures are redeemed completely.

2. Simple, naked or unsecured debentures:
Such debentures are not issued against the security of the assets of the company. Since, no security is placed for issuing such debentures, they are known as simple, naked or unsecured debentures. The holders of unsecured debentures come under the category of unsecured creditors. From the point of view of security, such debentures are very risky since on such debentures the company gives mere promise to pay the interest and to repay the principal sum when it is matured.

Question 6.
What do you mean by convertible and non-convertible debentures ?
Answer:
From Convertibility Point of View :
1. Convertible debentures:
The debentures for which the holders are given option to convert them into preference or equity shares within a stipulated period at a prescribed rate of exchange are called convertible debentures. Such debentures are popular among the companies because it may provide a permanent important source of capital.

2. Non-convertible debentures:
The debentures for which the holders have no option to convert into preference or equity shares are known as non convertible debentures. Generally, high rate of interest is allowed on such debentures. Such debentures are entirely redeemed on the date of their maturity.

Question 7.
Explain the methods of redemption of debentures.
Answer:
The method of redemption of debentures are as follows :

Lump sum Payment method
Annual installment payment method
Purchase in the open market.
Conversion method
Under the below mentioned condition, these rules are not applicable.
- Where the maturity period of debentures is not more than 18 months
- Where the debentures are issued to the authorized company.

Question 8.
Explain the essential characteristics of debentures.
Answer:
The essential characteristics of debentures are :

A debenture is a certificate of debt.
The company acknowledges the debt to the holders of the debentures by issuing debenture certificate.
Debenture is a convenient means of external borrowings.
A debenture includes debenture, stock, bonds or any of the security.
A debenture contains the provision for payment of interest at regular intervals on fixed dates.
A debenture contains the provision for repayment of the principal sum on due date.

Question 9.
What are the things kept in mind while redemption of debenture.
Answer:
Following things are kept in mind while redeeming the debenture :

Redemption fund should be made.
The amount of that fund utilize only that way what ever is redemption fund is created for.
It is compulsory for each and every company to deposit 50% amount issued amt.
Time of redemption amount should be arranged.

Question 10.
State the meaning of ‘Debentures issued as a collateral security’.
Answer:
The term collateral security means additional or secondary security in addition to the primary security. Sometimes, when a company takes loan from a financial institution, then besides the primary security, the company may issue debenture for additional security (as collateral security). The under who receives debenture as collateral security debenture is not entitled for interest on these debentures.

If any default is made by the company in paying back the principal amount or in interest on the loan, then the lender has the right to recover his dues from the amount the sale of primary security. But, if the primary security is not sufficient to recover the amount of the debt, then the debentures issued as collateral may be used for recovery of the remaining amount.

Question 11.
What do you mean by issue of debentures on discount and redemption on premium ?
Answer:
In this situation the company issue debentures at lesser than its face value but redeems them at higher than its face value. In this case company incurs loss both at the time of issue and at the time of redemption. The entries are as follows:

Bank A/c – Dr.
Discount on Issue of Debenture A/c – Dr.
Loss on issue of Debenture A/c
To Debenture A/c
To premium on Redemption of deb. A/c (Being issue of Debenture at discount and repayable at premium).

Issue and Redemption of Debentures Long Answer Type Questions

Question 1.
State the types of debentures. Explain any five.
Answer:
A company may issue following types of debentures:

Redeemable debentures.
Irredeemable debentures
Registered debentures
Simple debentures
Bearer debentures
Mortgaged or Secured debentures
Convertible debentures
Collateral debentures
Right debentures.

1. Registered Debentures:
The debentures which are entered in the register of the company and are payable only to the registered holders are known as registered debentures. The interest on these debentures is payable to the registered holder. Such debentures cannot be transferred by mere delivery.

2. Bearer Debentures:
Such debentures can be transferred merely by delivery with-out any legal formalities. There are payable to the bearer or holder.

3. Redeemable Debentures:
The debentures which are repayable after a fixed period are called redeemable debentures.

4. Simple or Naked Debentures:
The debentures which have no security of payment of the principal and interest are called simple or naked debentures.

5. Right Debentures:
If a company issues debentures after 2nd August, 1979, first of all the existing shareholders have a right to subscribe. Such debentures are known as right debentures.

Question 2.
Differentiate between debenture and share.
Answer:
Differences between share and debenture:
MP Board Class 12th Accountancy Important Questions Chapter 7 Issue and Redemption of Debentures - 4

Question 3.
Mention the advantages of issue of debentures to the company.
Answer:
Following are the advantages of issuing debentures:

1. Sufficient funds are raised:
At the event of need of additional capital a company may raise sufficient fund through issuing of debentures to the public.

2. No intervention in management:
A debenture holder has no right to intervene in the management of the company since they do not enjoy voting right.

3. Fixed rate of interest:
The rate of interest to be allowed on debentures is fixed at the time of issuing debentures. Hence, a company may make appropriate management to pay interest in advance.

4. More dividends to shareholders:
Due to issuing of debentures to full fill the need of additional capital, the shareholders may get more dividend since paying of interest to debenture holders costs cheaper than paying dividend, had the company issued additional shares to cater the need of additional capital.

5. Convenience in repayment:
A company may conveniently arrange for the repayment of debentures to be made after a specific period of time.

Question 4.
What is issue of debentures at par, at premium or at discount? Show the journal entries in each case.
Answer:
1. Issue of debentures at par:
When the debentures are issued at the face value of the debenture, it is called issue of debentures at par. For example, debenture of Rs. 100 is issued at the same value.

Journal Entry
Bank Account – Dr.
To Debenture Account
(Being cash received on debenture issue)

2. Issue of debentures at premium:
When the debentures are issued more than its face value, it is said to be issue of debentures at premium. For Example, Debentures of Rs. 100 is issued for Rs. 120. Here, Rs. 20 is premium. Generally the premium amount is collected along with allotment.

Journal Entry
Debenture Allotment A/c – Dr.
To Debenture A/c To Debenture Premium A/c (Being the debenture issued at premium)

3. Issue of debentures at discount:
When the debentures are issued less than its face value is called issue of debentures at a discount, e.g., Debenture of Rs. 100, issued for Rs. 90. Here, Rs. 10 is discount.

Journal Entry
Debenture Allotment A/c – Dr.
Debenture Discount A/c – Dr.
To Debenture A/c
(Being the debenture issued at discount)

MP Board Class 12 Accountancy Important Questions

MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids

October 31, 2019

MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids

Aldehydes, Ketones and Carboxylic Acids NCERT Intext Exercises

Question 1.
Write the structures of the following compounds:
(i) a-Methoxypropionaldehyde
(ii) 3-HydroxybutanaI
(iii) 2-Hydroxycyclopentane carbaldehyde
(iv) 4-Oxopentanal
(v) Di -sec. butyl ketone
(vi) 4-Fluoroacetophenone.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 1

Question 2.
Write the structures of products of the following reactions :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 3
Answer:

Question 3.
Arrange the following compounds in increasing order of their boiling points:
CH₃CHO,CH₃CH₂OH, CH₃OCH₃, CH₃CH₂CH₃.
Answer:
CH₃CH₂CH₃ < CH₃OCH₃ < CH₃CHO < CH₃CH₂OH.
This order can be predicted on the basis of inter-molecular force operating between them, these are having comparable molecular mass. CH₃CH₂OH undergoes the strongest H- bonding. In CH₃OCH₃ and CH₃CHO dipole-dipole attraction is more in CH₃CHO, since CH₃CHO is more polar than CH₃OCH₃ therefore its boiling point is more than CH₃—O—CH₃. Propane being non-polar therefore, weak van der Waals’ forces exist between them.

Question 4.
Arrange the following compounds in increasing order of their reactivity in nucleophilic addition reactions :
(i) Ethanal, Propanal, Propanone, Butanone.
(ii) Benzaldehyde, p-Tolualdehyde, p-Nitrobenzaldehyde, Acetophenone.
Hint: Consider steric effect and electronic effect.
Answer:
(i) Butanone < Propanone < Propanal < Ethanal.
This order is predicted on the basis of two factor : (a) + I effect (Electron releasing effect) and (b) Steric effect.

(ii) Acetophenone < p-tolualdehyde < Benzaldehyde < p-nitrobenzaldehyde.
This order is predicted on the basis of inductives, resonance and hyperconjugation effect.

Question 5.
Predict the products of the following reactions:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 5
Answer:

Question 6.
Give the IUPAC names of the following compounds:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 7
Answer:
(i) 3-Phenylpropanoic acid
(ii) 3-Methylbut-2-en-l-oic acid
(iii) 2-Methylcyclopentanecarboxylic acid
(iv) 2,4,6-Trinitrobenzoic acid or 2,4,6-Trinitrobenzenecarboxylic acid.

Question 7.
Show how each of the following compounds can be converted to benzoic acid:
(i) Ethylbenzene
(ii) Acetophenone
(iii) Bromobenzene and
(iv) Phenylethene (Styrene).
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 8

Question 8.
Which acid of each pair shown here would you expect to be stronger ?
(i) CH₃CO₂H or CH₂FCO₂H
(ii) CH₂FCO₂H or CH₂ClCO₂H
(iii) CH₂FCH₂CH₂CO₂H or CH₃CHFCH₂CO₂H
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 9
Answer:
(i) FCH₂COOH (due to -I effect of F)
(ii) FCH₂CO₂H (due to much stronger -I effect of F over Cl)
(iii) CH₃CHFCH₂COOH (Inductive effect decreases with distance i. e. 3-fluorobutanoic acid is stronger than 4-fluorobutanoic acid)

Aldehydes, Ketones and Carboxylic Acids NCERT Textbook Exercises

Question 1.
What is meant by the following terms ? Give an example of the reaction in each case:
(i) Cyanohydrin
(ii) Acetal
(iii) Semicarbazone
(iv) Aldol
(v) Hemiacetal
(vi) Oxime
(vii) Ketal
(vii) Imine
(ix) 2,4-DNP-derivative
(x) Schiff’s base.
Answer:
(i) Cyanohydrin: Cyanohydrins are organic compounds having the formula RR’C(OH)CN, where R and R’ can be alkyl or aryl groups.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 11
Aldehydes and ketones react with hydrogen cyanide (HCN) in the presence of excess sodium cyanide (NaCN) as a catalyst to field cyanohydrin. These reactions are known as cyanohydrin reactions.

Cyanohydrins are useful synthetic intermediates.

(ii) Acetal: Acetals are gem-dialkoxy alkanes two alkoxy groups are present on the terminal carbon atom. One bond is connected to an alky l General structure group while the other is connected to a hydrogen atom.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 13
When aldehydes are treated with two equivalents of a monohydric alcohol in the presence of dry HCl gas, hemiacetals are produced that further react with one more molecule of alcohol to yield acetal.

(iii) Semicarbazone : Semicarbazones are derivatives of aldehydes and ketones pro¬duced by the condensation reaction between a ketone or aldehyde and semicarbazide.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 15
Semicabazones are useful for identification and characterisation of aldehydes and ktones.

(iv) Aldol condensation : Two same or different molecules of carbonyl compounds containing a-hydrogen atom in presence of dilute alkali like NaOH, Ba(OH)₂, combined to form an addition compound which exhibits properties of aldehyde and ketone both. This reaction is called aldol condensation.

For example, in presence of dilute alkali NaOH or potassium carbonate, two molecules of acetaldehyde condensed and form β-hydroxybutanaldehyde or ‘aldol’.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 16

(v) Hemiacetal: Hemiacetals are a-alkoxyalcohols.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 17
Aldehyde reacts with one molecule of a monohydric alcohol in the presence of dry HCl gas.

(vi) Oxime: Oximes are a class of organic compounds having the general formula RR’CNOH, where R is an organic side chain and R’ is either hydrogen or an organic side chain, If R’ is H, then it is known as aldoxime and if R’ is an organic side chain, it is known as ketoxime.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 19

On treatment with hydroxylamine in a weakly acidic medium, aldehydes or ketones formaximes.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 20

(vii) Ketal: Ketals are gem-dialkoxyalkanes in which two alkoxy groups are present on the same carbon atom within the chain. The other two bonds of the carbon atom are connected to two alkyl groups.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 21
Ketones react with ethylene glycol in the presence of dry HCl gas to give a cyclic product known as ethylene glycol ketals.

(viii) Inline : Imines are chemical compounds containing a carbon nitrogen double bond.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 23
Imines are produced when aldehydes and ketones react with ammonia and its derivatives.

(ix) 2,4-DNP-derivative: 2,4-dinitrophenyIhydrazones are 2,4- DNP- derivatives, which are produced when aldehydes or ketones react with 2,4-dinitrophenylhydrazine in a weakly acidic medium.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 25
To identify and characterize aldehydes and ketones, 2,4-DNP derivatives are used.

(x) Schiff’s base : SchifFs base (or azomethine) is a chemical compound containing a carbon-nitrogen double bond with the nitrogen atom connected to an aryl or alkyl group but not hydrogen. They have the general formul R₁R₂C = NR₃. Hence, it is an imine. It is named after a scientist, Hugo Schiff.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 26
Aldehydes and ketones on treatment with primary aliphatic or aromatic amines in the presence of trace of an acid yields a Schiff’s base.

Question 2.
Name the following compounds according to IUPAC system of nomenclature :

CH₃CH(CH₃)CH₂CH₂CHO
CH₃CH₂COCH(C₂H₅)CH₂Cl
CH₃CH=CHCHO
CH₃COCH₂COCH₃
CH₃CH(CH₃)CH₂C(CH₃)₂COCH₃
(CH₃)₃CCH₂COOH
OHCC₆H₄CHO-p.

Answer:

4-Methylpentanal
6-Chloro-4-ethylhexan-3-one
But-2-en-l-al
Pentan-2, 4-dione
3,3,5-Trimethylhexan-2-one
3,3-Dimethylbutanoic acid
Benzene-1,4-dicarbaldehyde.

Question 3.
Draw the structures of the following compounds :
(i) 3-MethylbutanaI
(ii) p-Nitropropiophenone
(iii) p-Methylbenzaldehyde
(iv) 4-Methylpent-3-en-2-one
(v) 4-Chloropentan-2-one
(vi) 3-Bromo-4-phenylpentanoic acid
(vii) p, p’-Dihydroxybenzophenone
(viii) Hex-2-en-4-ynoic acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 27

Question 4.
Write the IUPAC names of the following ketones and aldehydes. Wherever possible, give also common names :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 30
Answer:

Question 5.
Draw structures of the following derivatives :
(i) The 2,4-dinitrophenylhydrazone of benzaldehyde
(ii) Cyclopropanone oxime
(iii) Acetaldehydedimethylacetal
(iv) The semicarbazone of cyclobutanone
(v) The ethylene ketal of hexan-3-one
(vi) The methyl hemiacetal of formaldehyde.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 32

Question 6.
Predict the products formed when cyclohexanecarbaldehyde reacts with following reagents:
(i) PhMgBr and then H₃O⁺
(ii)Toilens’ reagent
(iii) Semicarbazide and weak acid
(iv) Excess ethanol and acid
(v) Zinc amalgam and dilute hydrochloric acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 33

Question 7.
Which of the following compounds would undergo aldol condensation, which the Cannizzaro reaction and which neither ? Write the structures of the expected products of aldol condensation and Cannizzaro reaction :
(i) Methanal
(ii) 2-MethyIpentanal
(iii) Benzaldehyde
(iv) Benzophenone
(v) Cyclohexanone
(vi) 1-Phenylpropanone
(vii) Phenylacetaldehyde
(viii) Butan-l-ol
(ix) 2,2-DimethylbutanaI.
Answer:
(A) (ii) 2-methylpentanal, (v) Cyclohexanone, (vi) 1-phenylpropanone and (vii) Phenylacetaldehyde have one or more a-hydrogen atoms and hence undergo aldol condensation.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 35

(B) (i) Methanal, (iii) Benzaldehyde and (ix) 2,2-Dimethylbutanal do not contain a- hydrogen and hence undergo Cannizzaro’s reaction.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 38

(C) (iv) Benzophenone is a ketone having no a-H.
(viii) Butan-l-ol is an alcohol.
Both of these neither undergo aldol Condensation nor Cannizzaro reaction.

Question 8.
How will you convert ethanal into the following compounds :
(i) Butane-1,3-diol
(ii) But-2-enal
(iii) But-2-enoic acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 39

Question 9.
Write structural formulae and names of four possible aldol condensation products from propanal and butanal. In each case, indicate which aldehyde acts as nucleophile and which as electrophile.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 41
Butanal acts both as electrophile as well as nucleophile.

Question 10.
An organic compound with the molecular formula C₉H₁₀O forms 2, 4- DNP derivative, reduces Tollens’ reagent and undergoes Cannizzaro reaction. On vig-orous oxidation, it gives 1,2-benzene-dicarboxylic acid. Identify the compound.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 42

Question 11.
An organic compound (A) (molecular formula C₈H₁₆O₂) was hydrolysed with dilute sulphuric acid to give a carboxylic acid (B) and an alcohol (C). Oxidation of (C) with chromic acid produced (B). (C) on dehydration gives but-1- ene. Write equations for the reactions involved.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 43

Question 12.
Arrange the following compounds in increasing order of their property as indicated :
(i) Acetaldehyde, Acetone, Di-tert-butyl ketone, Methyl terf-butyl ketone (reactivity towards HCN)
(ii) CH₃CH₂CH(Br)COOH, CH₃CH(Br) CH₂COOH, (CH₃)₂CHCOOH, CH₃CH₂-CH₂COOH (acid strength)
(iii) Benzoic acid,’4-Nitrobenzoic acid, 3,4 Dinitrobenzoic acid, 4-Methoxybenzoic acid (acid strength).
Answer:
(i) The reactivity towards HCN addition decreases as the +1 effect of the alkyl groups increases.
Di-tert-butyl ketone < MethyL tert-butyl ketone < Acetone < Acetaldehyde.

(ii) +I effect decreases whereas —I effect increases the acidic strength of -COOH group. Further -I effect decreases with distance.
(CH₃)₂CHCOOH < CH₃CH₂CH₂COOH < CH₃-CH(Br)CH₂COOH < CH₃CH₂CH(Br)COOH.

(iii) Electron donating group decreases the acidic strength whereas electron withdrawing effect increases the acidic strength.
4-Methoxybenzoic acid < Benzoic acid < 4 Nitrobenzoic acid < 3,4-Dinitrobenzoic acid.

Question 13.
Give simple chemical tests to distinguish between the following pairs of compounds :
(i) Propanal and Propanone
(ii) Acetophenone and Benzophenone
(iii) Phenol and Benzoic acid
(iv) Benzoic acid and Ethyl benzoate
(v) Pentan-2-one and Pentan-3-one
(vi) Benzaldehyde and Acetophenone
(vii) Ethanal and Propanal.
Answer:
(i) Add Tollens’ reagent. Propanal will form silver mirror on heating, propanone will not react.
Alternative method : Add I₂ and NaOH propanone will give yellow ppt. due to iodoform whereas propanal will not react.

(ii) Add I₂ and NaOH. Acetophenone will give yellow ppt. of CHI₃ whereas benzophenone will not give.

(iii) Add neutral FeCl₃ to each of them separately. Phenol will give violet colour whereas benzoic acid will not react.
Alternative method : Add NaHCO₃ to each of them in aqueous solution. Benzoic acid will give brisk effervescence of CO₂ while phenol will not react.

(iv) Add NaHCO₃ solution to each of them. Benzoic acid will give brisk effervescence due to CO₂ whereas ethylbenzoate does not react.

(v) Add I₂ and NaOH each of them separately. Pentan-2-one will give yellow ppt. of CHI₃. Pen-tan-3-one will not.

(vi) Add Tollens’ reagent. Benzaldehyde will give silver mirror on heating, Acetophenone will not react.

(vii) Add I₂ and NaOH. Ethanal will give yellow precipitate of iodoform, whereas propanal does not.

Question 14.
How will you prepare the following compounds from benzene ? You may use any inorganic reagent and any organic reagent having not more than one carbon atom:
(i) Methyl benzoate
(ii) m-Nitrobenzoic acid
(iii) p-Nitrobenzoic acid
(iv) Phenylacetic acid
(v) p-Nitrobenzaldehyde.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 44

Question 15.
How will you bring about the following conversions in not more than two steps :
(i) Propanone to Propene
(ii) Benzoic acid to Benzaldehyde
(iii) Ethanol to 3-HydroxybutanaI
(iv) Benzene to m-Nitroacetophenone
(v) Benzaldehyde to Benzophenone
(vi) Bromobenzene to l-Phenylethanol
(vii) Benzaldehyde to 3-Phenylpropan-l-ol
(viii) Benazaldehyde to a-Hydroxy-phenylacetic acid
(ix) Benzoic acid to m-Nitrobenzyl alcohol.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 46

Question 16.
Describe the following :
(i) Acetylation
(ii) Cannizzaro
(iii) Cross-aldol condensation
(iv) Decarboxylation
Answer:
(i) Acetylation: The introduction of an acetyl functional group into an organic r compound is known as acetylation. It is usually carried out in the presence of a base such as pyridine, dimethylaniline, etc. This process involves the substitution of an acetyl group for an active hydrogen atom. Ecetyl chloride and acetic anhydride are commonly used as acetylating agents.

For example, acetylation of ethanol produces ethyl acetate.
CH₃CH₂OH + CH₃COCI → CH₃COOC₂H₅ + HCl

(ii) Cannizzaro reaction: Aldehydes which do not contain a-hydrogen like HCHO, C₆H₅CHO react with cone. NaOH solution to form methyl alcohol and formic acid. This reaction is called Cannizzaro reaction.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 49

(iii) Cross-aldol condensation: When aldol condensation is carried out between different aldehydes or two different ketones or an aldehyde and a ketone, then the reaction is called a cross-aldol condensation. If both the reactants contain cr-hydrogens, four compounds are obtained as products.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 50

(iv) Decarboxylation : Decarboxylation refers to the reaction in which carboxylic acids lose carbon dioxide to form hydrocarbons when their sodium salts are heated with soda-lime.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 51
Decarboxylation also takes place when aqueous solutions of alkali metal salts of carboxylic acids are electrolysed. This electrolytic process is known as Kolbe’s electrolysis.

Question 17.
Complete each synthesis by giving missing starting material, reagent or products:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 52

Answer:

Question 18.
Give plausible explanation for each of the following :
(i) Cyclohexanone forms cyanohydrin in good yield but 2,2,6-trimethyIcycIohexa- none does not.
(ii) There are two-NH₂ groups in semicarbazide. However, only one is involved in the formation of semicarbazones.
(iii) During the preparation of esters from a carboxylic acid and an alcohol in the presence of an acid catalyst, the water or the ester should be removed as soon as it is formed.
Answer:
(i) In 2, 2, 6- trimethylcyclohexanone, there is steric hindrance of three methyl groups, therefore, it does not form cyanohydrin in good yield as compared to cyclohexanone which does not have steric hindrance.

(ii) The lone pair of electron on NH₂ attached to carbonyl group is involved in resonance and hence not available for donation.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 57

(iii) It is done so that ester formed does not get hydrolysed.

Question 19.
An organic compound contains 69-77% carbon, 11-63% hydrogen and rest oxygen. The molecular mass of the compound is 86. It does not reduce Tollens’ reagent but forms an addition compound with sodium hydrogensulphite and give positive iodoform test. On vigorous oxidation it gives ethanoic and propanoic acid. Write the possible structure of the compound.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 58
It does not react with Tollens’ reagent, therefore it is not an aldehyde.
It forms addition compound with NaHSO₃, therefore it is a Ketone.
It gives Iodoform test therefore it is a methyl ketone.
On the basis of above the possible structure of compound is :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 59
On vigrous oxidation it gives ethanoic acid and propanoic acid, therefore the com¬pound is pen-tan-2-one and not 3-methylbutan-2-one.

Question 20.
Although phenoxide ion has more number of resonating structures than carboxylate ion, carboxylic acid is a stronger acid than phenol. Why ?
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 61
In carboxylate ion negative charge is delocalised over two oxygen atoms which are highly electronegative whereas in phenoxide ion negative charge is delocalised over only one oxygen atom. Carboxylate ion is more stable than phenoxide ion that is why carboxylic acid is more acidic than phenols.

Aldehydes, Ketones and Carboxylic Acids Other Important Questions And Answers

Aldehydes, Ketones and Carboxylic Acids Objective Type Questions

Question 1.
Choose the correct answer :

Question 1.
Formation of cyanohydrin by Ketone is an example of:
(a) Electrophilic addition
(b) Nucleophilic addition
(c) Nucleophilic substitution
(d) Electrophilic substitution.
Answer:
(b) Nucleophilic addition

Question 2.
Which of the following reaction gives Cannizzaro reaction with cone, alkali solution :
(a) Benzaldehyde
(b) Acetaldehyde
(c) Propanaldehyde
(d) All the above.
Answer:
(a) Benzaldehyde

Question 3.
Aldehydes and Ketones react with which of the following to form oxime :
(a) NH₃
(b) NH₂-NH₂
(c) NH₂OH
(d) NH₂CONH.NH₂.
Answer:
(c) NH₂OH

Question 4.
Aromatic aldehyde react with primary amines to give :
(a) Urea
(b) Amide
(c) SchifFs base
(d) Oxime.
Answer:
(c) SchifFs base

Question 5.
The reaction of acetaldehyde in basic medium is :
(a) Benzoin condensation
(b) Aldol condensation
(c) Polymerisation
(d) Cannizzaro reaction.
Answer:
(b) Aldol condensation

Question 6.
Which of the following does not give a yellow precipitate with I2 and NaOH :
(a) C₂H₅OH
(b) CH₃CHO
(c) CH₃—CO—CH₃
(d) HCHO.
Answer:
(d) HCHO.

Question 7.
IUPAC name of the compound of formula Cl₃—C—CH₂—CHO is :
(a) 3,3,3 trichloropropanol
(b) 1,1,1 trichloropropanol
(c) 2,2,2 trichloropropanol
(d) Chloral.
Answer:
(a) 3,3,3 trichloropropanol

Question 8.
The following precipitate is obtained by the reaction of Fehling solution with ethanol:
(a) Cu
(b) CHO
(c) Cu₂O
(d) Cu₂O + Cu₂O₃.
Answer:
(c) Cu₂O

Question 9.
Reduction of Aldehydes and Ketones to hydrocarbon occur in the presence of:
(a) Zn/Hg and HCl
(b) Pd/BaSO4
(c) Anhydrous AlCl3
(d) Ni/Pt.
Answer:
(a) Zn/Hg and HCl

Question 10.
Which of the following compound produce white precipitate with HgCl2 :
(a) HCOOH
(b) CH₃COOH
(c) C₂H₅COOH
(d) C₃H₇COOH.
Answer:
(a) HCOOH

Question 11.
Formic acid :
(a) Is immiscible with water
(b) Reduces ammoniacal silver nitrate
(c) Is three and half times weaker acid than acetic acid
(d) Is obtained on heating KOH.
Answer:
(b) Reduces ammoniacal silver nitrate

Question 12.
Correct order of Acidic strength is :
(a) CH₃COOH > CH₂ClCOOH > CHCl₂—COOH
(b) CHCl₂—COOH > CH₂ClCOOH > CH₃—COOH
(c) CHCl₂—COOH > CH₃—COOH >CH₂ClCOOH
(d) CH₂—ClCOOH > CH₃ — COOH > CHCl₂—COOH.
Answer:
(b) CHCl₂—COOH > CH₂ClCOOH > CH₃—COOH

Question 13.
Benzaldehyde on heating with alcoholic KCN gives :
(a) Benzoin
(b) Benzyl alcohol
(c) Sodium Benzoate
(d) Cinnamic acid.
Answer:
(a) Benzoin

Question 14.
Which of the following does not give silver mirror with ammoniacal AgNO₃ :
(a) HCHO
(b) CH₃—CHO
(c) CH₃—COOH
(d) HCOOH.
Answer:
(c) CH₃—COOH

Question 15.
The reagent compound which easily reacts with both acetaldehyde and ace-tone is: ,
(a) Fehling solution
(b) Grignard reagent
(c) Schiff’s reagent
(d) Tollen’s reagent.
Answer:
(b) Grignard reagent

Question 16.
Methyl Ketone is identified by :
(a) Tollen’s reagent
(b) Iodoform test
(c) SchifFs test
(d) Benedict solution.
Answer:
(b) Iodoform test

Question 17.
By Which reagent can Aldehyde and Ketone be differentiated :
(a) Fehling solution
(b) H₂SO₄ solution
(c) NaHSO₃ solution
(d) NH₃.
Answer:
(a) Fehling solution

Question 18.
Which compound will give Cannizzaro reaction :
(a) Propionaldehyde
(b) Benzaldehyde
(c) Bromobenzene
(d) Acetaldehyde.
Answer:
(b) Benzaldehyde

Question 19.
Tollen’s reagent is :
(a) Ammonical cuprous chloride
(b) Ammonical cuprous oxide
(c) Ammonical silver bromide
(d) Ammonical silver nitrate.
Answer:
(d) Ammonical silver nitrate.

Question 20.
By the reaction of Formaldehyde with KOH methanol and Potassium formate is formed. This reaction is known as :
(a) Perkin reaction
(b) Claisen reaction
(c) Cannizzaro reaction
(d) Knovengel reaction.
Answer:
(c) Cannizzaro reaction

Question 2.
Fill in the blanks :

By the electrolysis of Potassium acetate …………………. is obtained.
Mixture of Zinc-amalgam and cone, hydrochloric acid is called ………………….
Bakelite is a polymer of phenol and ………………….
Benzaldehyde is also known as ………………….
Ketones do not …………………. Tollen’s reagent.
40% aqueous solution of formic acid is called ………………….
Aldehyde give …………………. precipitate with Fehling solution.
On heating acetic acid with phosphorous pentaoxide …………………. is formed.
Paraldehyde is used as a …………………. medicine.
In Rosenmund’s reduction BaSO₄, acts as a …………………. for Pd and controls the reduction of aldehyde to ………………….
Oxidation of Toluene to benzaldehyde by chromyl chloride is known as ………………….
By the reduction of Acid chloride by Pd/BaSO₄ …………………. compound is formed.
By the reaction of aldehyde containing a-hydrogen with dilute NaOH …………………. is formed.
…………………. is obtained by the dry distillation of calcium acetate.

Answer:

Ethane
Clemmensen reduction
HCHO
Oil of bitter almond
Reduce
Formalin
Red
Acetic anhydride
Hypnotic
Poison, alcohol
Etard reaction
Aldehyde
Aldol
Acetone.

Question 3.
Match the following :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 62

Answer:

MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 64
Answer:

MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 65
Answer:

(e)
(c)
(a)
(b)
(d).

Question 4.
Write answer in one word/sentence :

SchifFs reagent gives which colour with Benzaldehyde.
Write IUPAC name of glacial acetic acid.
Sodium potassium tartarate associated with alkaline copper sulphate solution is known as.
Why do carboxylic acids occur as cyclic dimer ?
Which compound is obtained on heating aromatic aldehyde with acid anhydride in the presence sodium carboxylate ?
Write the name of the condensation reaction of KCN in benzaldehyde.
Which gas is obtained by the dehydration of formic acid ?
Name the reagent which can convert an acid to ester without the use of alcohol.

Answer:

Pink
Ethanoic acid
Fehling solution
Due to intermolecular hydrogen bonding
Un-saturated aromatic carboxylic acid (Cinnamic acid)
Benzoin condensation
Carbon monoxide
CH₂N₂.

Aldehydes, Ketones and Carboxylic Acids Short Answer Type Questions

Question 1.
(i) Arrange the following acids in the order of increasing acidic strength :
HCOOH, CH₃—COOH,C₆H₅COOH
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 66
(iii) Arrange in the increasing order of reactivity :
HCHO,CH₃CHO and CH₃COCH₃
Answer:
(i) Increasing order of acidic strength :
CH₃COOH < C₆H₅COOH < HCOOH

(ii) IUPAC name — 2 methyl propanal
Common name — Iso propyl aldehyde

(iii) Increasing order of reactivity :
CH₃COCH₃ < CH₃CHO < HCHO.

Question 2.
(i) What is Hell- Volhard- Zelinsky (HVZ) reaction ?
(ii) What happens when formic acid is heated ?
Answer:
(i) Hell-Volhard-Zelinsky reaction: When carboxylic acid is treated with Cl₂ or Br₂ in presence of phosphorus, α- halogenated carboxylic acid is formed. This reaction is known as Hell-Volhard-Zelinsky reaction (HVZ).
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 67
(ii) When formic acid is heated to 160°C it dissociates into CO and H₂O.

Question 3.
(i) Why ketones are less reactive than aldehydes ?
(ii) Benzaldehyde is less reactive than Acetaldehyde. Why ?
Answer:
(i) Ketones are less reactive than aldehydes because in ketones there are two alky group attached with carbonyl group, due to the positive inductive effect (+ I) of both the alkyl group the positive charge on carbon atom decreases.
Hence, the sensitivity of ketones to the nucleophilic reagents decreases.
In aldehydes, they have only one alkyl group so they are more reactive than ketones.

(ii) —CHO group of benzaldehyde becomes stable due to resonance with benzene ring whereas resonance is not found in acetaldehyde. Benzaldehyde is aromatic and aldehyde is aliphatic.

Question 4.
How is urotropine obtained from formaldehyde ? Write its chemical name and structural formula.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 69
Answer:
When formaldehyde is treated with ammonia, urotropine is formed. Its chemical name is hexamethylene tetra ammine or Hexa ammine.

Question 5.
Although phenoxide ion has more number of resonating structures than carboxylate ion. Carboxylic acid is a stronger acid than phenol. Why ?
Answer:
Carboxylate ion and phenoxide ion both achieve stability due to resonance. But carboxylate ion is more stable than phenoxide ion because in it negative charge is delocalised over two highly electronegative oxygen atom whereas in structures II, III and IV of phenoxide ion the negative charge is delocalized on less electronegative carbon. That is why, carboxylic acid is more acidic than phenol.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 71

Question 6.
Write a note on Tollen’s reagent.
Or,
What is Tollen’s reagent ? Write its reaction with Acetaldehyde.
Answer:
Tollen’s Reagent : Ammoniacal silver nitrate solution is known as Tollen’s reagent. When Tollen’s reagent is heated with aldehyde, aldehyde reduces Ag+ to Ag and forms a bright silver mirror on the wall.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 72

Question 7.
Why boiling point of carboxylic acid is higher than alcohols having same molecular mass ?
Answer:
Carboxylic acid exist as dimer due to hydrogen bond. These bonds are more stronger in acids com¬pared to alcohols, therefore boiling point of carboxylic acid is higher than alcohol.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 73

Question 8.
Explain Fehling reaction with equation.
Answer:
Fehling Reaction : Sodium Potassium tartarate associated with alkaline CuSO4 is known as Fehling solution. When aldehyde is heated with Fehling solution, then aldehyde is oxidized and red precipitate of cuprous oxide is obtained. This is known as Fehling test.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 74

Question 9.
Why is the boiling point of ketone little higher than its corresponding isomeric aldehyde ?
Answer:
Ketones are comparatively more polar than their corresponding isomeric aldehyde because the >C=0 group in Ketone is linked with two electron releasing alkyl group. Thus, the dipole attractive force of ketone is comparatively higher. This is the reason that the boiling point of ketone is comparatively higher than its corresponding isomeric aldehyde.

Question 10.
Among formaldehyde, acetaldehyde and acetone which is more reactive and why ? Explain.
Answer:
Among HCHO, CH₃CHO and CH₃COCH₃, HCHO is more reactive. This can be explained on the basis of:

1. Electron releasing effect : Alkyl groups are electron releasing in nature due to which magnitude of positive charge on carbonyl carbon decreases and hence it becomes less susceptible to nucleophilic attack.

2. Steric effect: The bulkier groups in ketones hinders approach of the nucleophile to the carbonyl carbon. This is known as steric effect.

Thus, HCHO with negligible electron releasing effect as well as steric effect is more reactive.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 75

Question 11.
Compare acidic strength of acetic acid, formic acid and chloroacetic acid.
Answer:
Chlorine atom present in chloroacetic acid has strong negative inductive effect (-I). Due to this, electrons of O—H bond easily displaced towards oxygen and it releases H+ easily. CH₃ group present in CH₃COOH which produces (+ I) effect causes decrease in acidic nature.

In formic acid there is no such group which produces (+ I) or (- I) effect. Hence, formic acid is stronger than acetic acid and chloroacetic acid is stronger than acetic acid. In short chloroacetic acid is stronger than formic acid and formic acid is stronger than acetic acid.

Question 12.
Identify the compounds A, B and C in the following reactions :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 76
Answer:

Question 13.
Write down the chemical equation for the following reaction :
(a) Reaction of acetaldehyde with H₂SO₄ at 0°C
(b) Reaction of formaldehyde with ammonical AgNO₃
(c) Heating acetic acid with P₂O₅.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 78

Question 14.
Describe briefly polymerization of acetaldehyde.
Answer:
(i) At normal temperature acetaldehyde in presence of cone. H₂SO₄, polymerises into para-aldehyde.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 79
(ii) At 0°C, on passing HCl gas, acetaldehyde changes into meta-aldehyde.

Question 15.
Write down the difference between formic acid and acetic acid on the basis of following points :
1. Effect of heat.
2. Reaction with acidified KMnO₄.
3. Distillation of Ca salt.
4. Reaction with ammoniacal silver nitrate solution.
5. Reaction with PCl₅.
Answer:
Differences between Formic Acid and Acetic Acid
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 81

Question 16.
Explain Stephen’s reaction and Benzoin condensation with example.
Answer:
Stephen’s reaction : Alkyl cyanide on reduction with acidified stannous chloride (i.e., SnCl₂ + HCl) at room temperature forms aldimine hydrochloride, which on hydrolysis with boiling water gives aldehyde. This specific type of reduction of cyanide is known as Stephen’s reduction.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 82
Benzoin condensation : Two molecules of benzaldehyde in presence of alcoholic KCN or NaCN condenses to form benzoin.

Question 17.
(i) Write short note on Perkin’s reaction.
(ii) What happens when acetone is heated with H₂SO₄ ?
Answer:
(i) Perkin’s reaction : When aromatic aldehyde is heated in presence of sodium salt of aliphatic acid with anhydride of aliphatic acid, then α,β unsaturated acid is obtained.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 84

(ii) In presence of H₂SO₄ three molecules of acetone get condensed and form mesitylene.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 85

Question 18.
What is Vinegar ? Write its two use.
Answer:
6 to 10% aqueous solution of acetic acid is known as vinegar.
Use : 1. In the preservation of pickle, chutney and Jam.
2. In the preparation of basic copper acetate.

Question 19.
What is Formalin ? Write its two use.
Answer:
40% aqueous solution of formaldehyde (H—CHO) is known as Formalin.
Uses : 1. In cleaning the rooms of patients.
2. In the preservation of dead bodies.

Question 20.
What happens when (Give only equations):
(i) Calcium formate is heated alone.
(ii) Calcium benzoate is heated alone.
(iii) Calcium formate is heated with calcium acetate.
(iv) Dry distillation of calcium benzoate and calcium formate takes place.
Answer:
(i) Formaldehyde is formed :

(ii) Benzophenone is formed :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 87
(iii) Acetaldehyde is formed :

(iv) Benzaldehyde is formed :

Question 21.
What happens when (Give only equations) :
(i) Formaldehyde reacts with ammonia.
(ii) Calcium formate is heated with calcium acetate.
(iii) Acetone reacts with Grignard’s reagent.
(iv) Acetylene reacts with water in the presence of HgSO₄ and H₂SO₄.
(v) Acetyl chloride to Acetaldehyde.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 90

Question 22.
Write down the difference between compounds containing aldehydic group and ketonic group.
Answer:
Differences between Aldehydic and Ketonic group :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 91

Question 23.
An organic compound A (molecular formula C₈H₈O) gives positive 2,4 DNP test. On treating with iodine and sodium hydroxide it gives yellow precipitate of compound B. Compound A does not give Tollen and Fehling test. On drastic oxidation with potassium permanganate it forms a carboxylic acid C (molecular formula C₇H₆O₂) which is also formed with yellow compound in the above reaction. Identify A, B and C and write the related reactions.
Answer:
Compound A does not give Tollen and Fehling test. Thus, it is a Ketone not aldehyde.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 93

Question 24.
Why trichloroacetic acid is strong like inorganic acid ? Explain, benzoic acid is solid while primary aliphatic acids are liquids. Give reason.
Answer:
Chlorine atom present in trichloroacetic acid is electron withdrawing group. Due to this, release of H+ ion becomes easier as trichloroacetate ion is more stable than its molecule because of dispersal of negative charge on its oxygen. Thus, it behaves as a strong acid like inorganic acid.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 94
Benzoic acid is solid due to its poiar nature dye to the presence of O-δ – H+δ group and high molecular mass while lower aliphatic acids dimerises due to H-bonding hence they are liquid.

Question 25.
Differentiate Polymerization and Condensation.
Answer:
Differences between Polymerization and Condensation :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 96

Question 26.
Write down the reactions showing conversion of
(i) Acetic acid into formic acid
(ii) Formic acid into acetic acid.
Answer:
(i) Conversion of CH₃—COOH into H—COOH :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 97
(ii) Conversion of formic acid into acetic acid:

Question 27.
How will you obtain the following :
(i) Acetaldehyde from acetyle chloride
(ii) Acetone from calcium acetate
(iii) Acetic acid from ethyl acetate
(iv) Ethane from acetic acid.
Answer:
(i) Aldehyde can be prepared by the reduction of acetyl chloride with H`₂ in the presence of palladium deposited over barium sulphate.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 99
(ii) Calcium acetate on dry distillation gives a acetone.

(iii) Ethyl acetate are hydrolysed by mineral acids or alkalies to give acetic acid and ethyl alcohol.

(iv) Acetic acid on reduction with HI in presence of red phosphorus at 500 K to give ethene.

Question 28.
When liquid A is treated with freshly prepared ammoniacal silver nitrate solution, it give bright silver mirror. When the liquid is reacted with sodium hydrogen sulphite a white crystalline solid is formed. Liquid B also forms white crystalline solid with sodium hydrogen sulphite but it does not give test with ammoniacal silver nitrate. Which among the two liquids is an aldehyde ? Write chemical equations of these reactions.
Answer:
Since, liquid A reduces ammoniacal silver nitrate (Tollen’s reagent). Thus, A is an aldehyde.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 103

Question 29.
How formic acid is prepared in laboratory ? Write two uses of it.
Answer:
Formic acid is prepared in the laboratory by heating glycerol with oxalic acid at 100-110°C in a distillation flask fitted with the thermometer and condenser.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 105
Uses : (i) For dyeing of cotton and woollen cloth.
(ii) In leather industry.
(iii) Preservation of fruits.
(iv) In rubber industry.
(v) In electroplating.

Aldehydes, Ketones and Carboxylic Acids Long Answer Type Questions

Question 1.
Describe the laboratory method of preparation of acetone. Draw labelled diagram and write down chemical equations.
Answer:
In laboratory, acetone is prepared by dry distillation of anhydrous calcium acetate.

Method : 30-40 gm of calcium acetate mixed with equal amount of sodium acetate is heated in a glass retort fitted with a condenser and receiver. Acetone is collected in the receiver. The acetone so obtained is not pure. To purify this, it is shaken with saturated solution of sodium bisulphite then crystals of acetone sodium bisulphite salt separate out. The crystal is washed and heated with sodium carbonate and then dried over anhydrous CaCl₂ and then distilled at 56°C to get pure acetone.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 107
(CH₃)₂C = O + NaHSO₃ → (CH₃)₂C(OH)SO₃Na
2(CH₃)₂C(OH)SO₃Na + Na₂CO₃ → (CH₃)2C = 0 + 2Na₂SO₃ + H₂O + CO₂.

Question 2.
Write down the following reaction giving example and equation :
(a) Iodoform reaction
(b) Tischenko reaction
(c) Gattermann-Koch synthesis
(d) Rosenmund’s reaction.
Answer:
(a) Iodoform (Haloform) reaction : Acetaldehyde or methyl ketone reacts with iodine in presence of alkali to form yellow coloured iodoform. This reaction is known as iodoform test.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 108

(b) Tischenko reaction: Two molecules of benzaldehyde is coupled together in presence of aluminium ethoxide or isopropoxide then benzylbenzoate (ester) is formed.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 109

(c) Gattermann-Koch synthesis : Mixture of CO and HCl bubbled through a solution of aromatic hydrocarbon in ether solution in the presence of anhydrous AlCl3, then benzaldehyde is formed.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 110

(d) Rosenmund’s reaction : Aldehydes are obtained by the reduction of acid chloride with hydrogen in boiling xylene in presence of a catalyst Pd suspended in BaSO₄.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 111
This reaction is called Rosenmund reaction.

Question 3.
Give quick vinegar method of preparation of acetic acid. Give its reaction with phosphorus pentaoxide and phosphorus pentachloride and write its two uses.
Answer:
In this process, a dilute aqueous solution of ethyl alcohol is oxidized in presence of enzyme Mycoderma aceti.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 112
In this process, a wooden vat is fitted with two wooden plates having holes. Between these plates is filled by beech wood savings, moistened with old vinegar solution which is the chief source of Mycoderma aceti. A 10% aqueous solution of ethyl alcohol is dropped slowly from the top of the vat and air is passed at a controlled rate through the holes near the bottom of the vat. Ethyl alcohol is oxidized to acetic acid. This process is called quick vinegar process because vinegar is formed very quickly.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 113
(a) Reaction with P₂O₅:

(b) Reaction with PCl₅:

Uses : (i) As a reagent and solvent in the lab.
(ii) As vinegar in the preparation of pickel, chutney etc.
(iii) In the preparation of methyl acetate, ethyl acetate and other esters.

Question 4.
Write a brief note on :
(i) Claisen condensation
(ii) Benzoin condensation.
Answer:
(i) Claisen condensation : When aromatic aldehyde reacts with aliphatic aldehyde or ketone with α-hydrogen, in presence of weak base, α,β unsaturated aldehyde or ketone is formed. This type of condensation is called claisen condensation.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 116

(ii) Benzoin condensation : Two molecules of benzaldehyde in presence of alcoholic KCN orNaCN condenses to form benzoin.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 118

Question 5.
How will you obtain the following from acetic acid (Give only equations):
(i) Acetamide
(ii) Ethyl acetate
(iii) Acetic Anhydride
(iv) TVichloro acetic acid.
Answer:
(i) Acetamide:

(ii) Ethyl acetate:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 120
(iii) Acetic anhydride:

(iv) Trichloro acetic acid:

Question 6.
What happens when (Write only equations):
(i) Acetone reacts with chloroform,
(ii) Benzaldehyde reacts with acetic anhydride.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 123

Question 7.
Write notes on the following reactions:
(i) Stephen reaction
(ii) Etard reaction
(iii) Knoevenagel reaction.
Answer:
(i) Stephen reaction : In this reaction, phenyl cyanide is reduced in etheral solution by stannous chloride and hydrogen chloride followed by hydrolysis to form benzaldehyde.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 124

(ii) Etard reaction: In this reaction toluene is oxidised by chromyl chloride dissolved in CS₂ or CCl₄, a brown complex initially formed is separated. This is then decomposed by water to form benzaldehyde.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 125

(iii) Knoevenagel condensation: Benzaldehyde reacts with compounds having active methylene group (e.g., malonic ester and acetoacetic ester) in the presence of pyridine or glacial acetic acid in acetamide thereby forming α,β unsaturated carbonyl compounds.
For example, with malonic ester, cinnamic acid is formed.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 126

Question 8.
What happens when (only equation)
(a) On reacting acetone with grignard reagent.
(b) Reaction of acetone with chloroform in presence of KOH.
(c) Benzaldehyde reacts with aniline.
(d) On heating sodium salt of carboxylic acid with soda lime.
(e) Benzyl chloride reacts with acetyl chloride in presence of anhydrous AlCl₃.
Answer:
(a) Reaction of acetone with Grignard reagent.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 127

(b) Reaction of acetone with chloroform.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 128

(c) Reaction of benzaldehyde with aniline.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 129

(d) Reaction of sodium salt of carboxylic acid with soda lime.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 130

(e) Reaction of benzene with CH₃COCl.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 131

Question 9.
How will you obtain :
(a) Acetaldehyde from acetylene
(b) Propanone from propyne.
Answer:
(a) Acetaldehyde from acetylene :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 132

(b) Propanone from propyne :
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 133

Question 10.
Starting from acetic acid how will you get the following :
(1) Ethyl alcohol
(2) Ethyl acetate
(3) Methyl bromide
(4) Acetone
(5) Acetic anhydride
(6) Acetamide
(7) Trichloroacetic acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 134

Question 11.
How will you obtain (Give equation):
(i) Benzoic acid from toluene
(ii) Acetic acid from propanoic acid
(iii) Propanol from propanoic acid
(iv) Formic acid from acetic acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 136

Question 12.
Give chemical equation of the following :
(i) Acetaldehyde from formaldehyde
(ii) Formaldehyde from acetaldehyde
(iii) Acetic acid from formic acid.
Answer:
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 137

Question 13.
Give equation for reactions of Grignard reagent with following :
(a) CO
(b) HCN
(c) HCOOC₂H₅
(d) CH₃CN.
Answer:
(a) With CO : Aldehyde is obtained.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 138
(b) With HCN : Aldehyde is formed.

(c) With HCOOC₂H₅ : Aldehyde is formed.

(d) With CH₃CN : Propanone is formed.

Question 14.
What happens when (Write only equations):
(i) Acetic acid reacts with ethyl alcohol
(ii) Acetic acid reacts with ammonia
(iii) Acetone reacts with chloroform
(iv) Benzaldehyde reacts with acetic anhydride.
Answer:

MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 143

Question 15.
Explain:
(a) Boiling points of aldehydes and ketones are less than corresponding alcohols and acids.
(b) Boiling points of carboxylic acids are higher than carboxylic acid of similar molecular masses.
Answer:
(a) Aldehydes and ketones are polar compounds so their b.p. are higher than non-polar hydrocarbons but less than that of corresponding alcohols and carboxylic acids. Alcohol and carboxylic acids form associated molecules due to intermolecular hydrogen bonding while hydrogen bonding is not possible in aldehydes and ketones because hydrogen atom is not bonded with oxygen atom. Thus, due to presence of intermolecular hydrogen bonding b.p. of alcohol and acids are higher.

(b) Boiling points of carboxylic acids are higher than alcohols of similar molecular mass because acids have stronger hydrogen bonding than alcohols. Thus, molecules of carboxylic acids linked with hydrogen bonds have more attractive force and thus they possess higher boiling points.
MP Board Class 12th Chemistry Solutions Chapter 12 Aldehydes, Ketones and Carboxylic Acids 144

MP Board Class 12th Chemistry Solutions

MP Board Class 12th Business Studies Important Questions Chapter 5 Organization

October 31, 2019

MP Board Class 12th Business Studies Important Questions Chapter 5 Organization

Organization Important Questions

Organization Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
Out of the following, which is not a part of delegations :
(a) Accountability
(b) Authority
(c) Responsibility
(d) informal organization.
Answer:
(d) informal organization.

Question 2.
A network of social relationship that arise relationship due to interaction at work is called:
(a) Formal organization
(b) Informal organization
(c) Denaturalization
(d) Delegation.
Answer:
(b) Informal organization

Question 3.
Organization cannot be seen as :
(a) As a work of management
(b) As a structure of relationship
(c) As a process
(d) As an enterprise instinct
Answer:
(d) As an enterprise instinct

Question 4.
Which of the following is not a part of organization:
(a) Division of work
(b) Work structure
(c) Formation of work and departments
(d) provide leadership
Answer:
(d)provide leadership

Question 5.
Which of the following does not follow the scalar chain :
(a) Formal structure
(b) Informal structure
(c) Functional structure
(d) Divisional structure
Answer:
(b) Informal structure

Question 6.
Group of activities on the basis of product line Is a part of:
(a) Decentralized organization
(b) Divisional organization
(c) Functional organization
(d) Centralized organization
Answer:
(b) Divisional organization

Question 7.
A tall structure has a :
(a) Narrow span of management
(b) Wide span of management
(c) No span of management
(d) None of these
Answer:
(a) Narrow span of management

Question 8.
Grouping of a activities on the basis of functions line is a part of:
(a) Delegated organization
(b) Divisional organization
(c) Functional organization
(d) Autonomous organization
Answer:
(c) Functional organization

Question 9.
Centralization refers to :
(a) Retention of decision making authority
(b) Dispersal of decision making authority
(c) Creating division of profit centers
(d) Opening new centers or branches
Answer:
(a)Retention of decision making authority

Question 10.
Span management refers to :
(a) Number of managers
(b) Length of term for which a manger is appointed
(c) Number of subordinates under a superior
(d) Number of members in top management.
Answer:
(b) Length of term for which a manger is appointed

Question 2.
Fill in the blanks:

……………….establishes cordial relation between labour and capital.
Organization formed according to goods produced by them is called …………..
The transfer of right in limited form to the members is called …………..
Distribution of rights and duties of an enterprise at the lowest level is called ……………
Rights and duties are clearly described in ……………organization.

Answer:

Organization
Departmental, Organization
Delegation
Decentralization
Formal

Question 3.
Write the answers in one word/sentence :

Granting authority and responsibility regarding a specific job to subordinates.
A systamatic dispersion of authority at all levels of department.
Big organization is divided into small administrative unit.
Authority is delegated not responsibility.
That form of organization which is developed due to mutual relations.
That organization which is based on rules and procedures.
In functional organization what type of relation is shown ?
When does management of organization comes in the process of management ?
Which step is departmental organization ?
In informal organization what type of relations is there among members ?

Answer:

Authority
Decentralization
Divisional organization
Authority
Informal organization
Informal organization
Authority and subordinates
After planning
Second step
Friendly relation.

Question 4.
Write true or false :

Establishment of organization is done by lower level of management.
Organization gives birth to corruption.
Delegation of authority means assigning work to others.
Accountability is the obligation to carry out responsibility.
Organization in management is as important as structure of bones in human body.

Answer

False
False
True
True
True.

Question 5.
Match the columns
MP Board Class 12th Business Studies Important Questions Chapter 5 Organization image - 1
Answer:
1. (e)
2. (a)
3. (b)
4. (c)
5. (d)

Organization Very Short Answer Type Questions

Question 1.
After which function of management organizing function comes ?
Answer:
Organizing function comes after planning.

Question 2.
How does a strong organization increases job satisfaction among the workers ?
Answer:
A strong organization increases job satisfaction among the workers by assigning them work according to their ability.

Question 3.
How can repetition stopped in an organization ?
Answer:
Right person at the right job.

Question 4.
Why is a big task divided into smaller parts ?
Answer:
Because of the following reasons:

To reduce the burden of work load
To avail the ability of specialized employees
To avoid from repetition of tasks.

Question 5.
What do you understand by divisional ?
Answer:
When a big organization is divided into small administrative units for managing effectively it is called divisional.

Question 6.
How is the word organizing used ?
Answer:
Organization is used in two forms :

Organizational Structure and
Functional structure.

Question 7.
What is delegation of authority ?
Answer:
Delegation of authority merely means the granting of authority to subordinate to operate within prescribed limits.

Question 8.
Explain the meaning of authority responsibility accountability relationship.
Answer:
Authority responsibility relationship means the relationship which explains from whom an individual will receive orders and to whom he will be accountable or answerable while performing a particular task.

Question 9.
What is expansion of management ?
Answer:
Expansion of management means organizing the deployment of employees or managing tasks.

Question 10.
How is informal organization formed ?
Answer:
The structure is a result of social interaction between employees of similar interests.

Organization Short Answer Type Questions

Question 1.
What is delegation of authority ?
Answer:
Granting authority and responsibility regarding specific job to the subordinates is called as delegation of authority. Delegation of authority is an art of granting certain ordinary, routine and exact authorities to competent subordinates so that they can perform the work as per instructions efficiently. It is an important element of organization. Delegation of authority is based upon the principle of division of work.

Question 2.
What is line organization ?
Answer:
Line organization is the oldest form of organization. Business or industry structure with self contained departments. Authority travels downwards from top and accountability upwards from bottom along the chain of command and each department manager has control over his or her departments affairs and employees.

Question 3.
What do you mean by organization ?
Answer:
Organization means a group of people having a certain object. It involves coordinating the employees activities in an efficient manner for accomplishing the objectives of the enterprise. The success of an enterprise totally depends on how powerful the organization is.

Question 4.
Explain the merits of committee organization.
Answer:
The merits of committee organization are as follows :

Committee organization promotes cooperation
Quick decisions can be taken in important cases
Policy matters and problems can be solved easily
Coordination can easily be exercised in different departments with the help of committees.

Question 5.
Give a definition of organization.
Answer:
According to Prof. L. Haney, “Organization is a harmonious adjustment of specialized parts for the accomplishments of some common purpose or purposes.”
According to D.W.R. Spriegal, “Organization is the structural relationship between the various factors in an enterprise”.

Question 6.
Where is line organization suitable ?
Answer:
Those organizational units where employees are less in number. Production is of general type and employees are disciplined, here line organization is suitable.

Question 7.
How does organization help in improving the morale of employees ?
Answer:
In an effective organization, the employees are well aware of their rights, duties and responsibilities and therefore they understand the objectives of the enterprise quite well. This helps them to develop the feelings of sincerity, participation and cooperation thereby increasing their morale.

Question 8.
How organization stops repetition of work ?
Answer:
By assigning specific work to specific person repetition is avoided in organization.

Question 9.
Write the main characteristics of line organization.
Answer:
The main characteristics of line organization are :

The orders flow from top to bottom i.e. in downward direction.
orders are passed by officers.

Question 10.
Write the various forms of organization.
Answer:
According to nature and size, an organization has following forms :

Line organization
Line and staff organization
Functional organization
Committee organization.

Question 11.
Discuss the objectives or importance of organization.
Answer:

1. Economy in production : The main object of organization is to bring economy in production. It means production of goods at minimum cost.

2. Economy in time and labour : In organization, best machines, equipments and best methods are applied and so enough time and labour of the work are saved.

3. Cordial relations between labour and capital: To establish relation between labour and management is one of the object of organization. For this, the best entrepreneur is appointed to safeguard the interest of the labour and capital.

4. Spirit of service : Due to social consciousness, the object of every businessman is to serve first then profit. So, every organization in present time has the object to serve.

Question 12.
Throw light on the importance of organization.
Answer:

1. Effective formulation of policies : Policies are framed by the administration of any enterprises or organization. It is the work of the management to formulate all policies. Once the policies are framed, the organization (normally, a group of people) executes these policies. A strong organization ensures reliable policies. So, organization has great importance for effective formulation of policies.

2. Encouragement to specialization : Specialization is based upon the principle of division of labour. If the employees are grouped according to their efficiency, then the work will be carried-out efficiently. This division of work enhances the spirit of employees. Specialization is encouraged due to the number of employees.

3. Increase in managerial efficiency : Priority is given to coperaion, coordination and discipline in a sound organization. So, the work is done at the earliest. Due to earliest disposal of work, new planning is again framed by the top management or administration so the work remains in the continuous process. In this way due to the expansion of managerial work, managerial efficiency progress in a rapid way.

4. Fillip to growth : It can be known from the history of old and big organization that their growth has become possible due to organization. The main maxim for the growth of healthy and sound business is only organization.

5. To work systematically : In organization every person performs his duty systematically as it is clearly directed in the organization about the execution of work.

6. Prevents corruption : There is no any place corruption in a sound organization.

Question 13.
“Organization increases the capacity of production”. Explain.
Answer:
In a sound and organization employees work with full devotion and so production of the enter process increases. Now techniques and machines developed in the enterprise increases the efficiency of employees which will result is large scale production.

Question 14.
What is project organization ?
Answer:
Project organization is that system in which a working team is constituted for specific production or to provide services.

Question 15.
What are the disadvantages of line organization ?
Answer:
Disadvantages of line organization are as follows :
(i) There is a good scope for favouritism as the highest officer has the authority. There is a possibility that he promotes or appoints his favourites.
(ii) The-modem industry is so complex that it is not possible for a single person to perform all the work efficiently. It is not possible for the department head to be specialized in very field. Hence, there is a lack of specialization in this method.

Question 16.
What is line and staff organization ? Write its four characteristics.
Answer:
The line is the chain of command that extends from board of directors through the various delegation and re-delegations of authority and responsibility to the point where
the primary activities of the company are performed. They are directly engaged in producing or selling of goods and services and provide advices also characteristics :

Order and responsibility moves from top to bottom in this organization.
Both the working thinking and giving suggestions are separate in it.
To assist the line officers employees are appointed.
The specialists work as a staff member only.

Question 17.
Mention the advantages of line organization.
Answer:
Advantages : The advantage of line organization are as follows :

Every member of the organization knows his responsibilities and duties.
There is strong discipline because the subordinates knows their rights and control area.
In this type of organization, adjustment can be made according to the needs, i.e., there is flexibility.
The subordinates cannot runaway from their duties because they are not able to put their responsibilities on others.

Question 18.
What do you mean by committee organization ?
Answer:
Committee organization is that system in which a specific group is formed to perform administrative work committee is a group of persons. They are allotted some functions in such a way that they will perform the function collectively. The head of this committee is called the president.

Question 19.
What are the reasons of distributing works in small parts ?
Answer:
Work is distributed into small parts due to following reasons :

To reduce the pressure of work
To have advantage of profit
To divide the work in such a way so that repetition should not be there.

Question 20.
What do you mean by divisional organization ?
Answer:
When a big organization is divided into small administrative unit for managing effectively, it is called divisional organization.

Question 21.
Write the four advantages of territorial organization.
Answer:
The four advantages of territorial organization are as follows :

It provides effective span at control.
Expansion of business in various regions becomes easy.
It facilitates in economy is rent and labour.
It provides opportunity of giving training to managers.

Question 22.
“By top level organization the efficiency of Administration increases.” Explain.
Answer:
Formal organization is top level organization. Formal organization is established for general objectives. Organization structure is determined by top level. In it authority and responsibility are clearly defined. Formal organization aims at achieving predetermined objectives. Every individual belongs to one work group only and works under one superior. So by top level organization the efficiency of administration increases.

Question 23.
Distinguish between divisional and functional organization.
Answer:
The differences between divisional and functional organization :
MP Board Class 12th Business Studies Important Questions Chapter 5 Organization image - 8
Question 24.
What is the relation between formal and informal organization ?
Answer:
Informal organization is a part of formal organization. In formal organization the worker complete their work with the help of each other. They consult each other due to this friendly relationship is maintained. On the basis of friendship a network of informal organization in formed. This network is called informal organization. Thus formal organization gives birth to informal organization. So we can say that formal organization and informal organization are interrelated.

Question 25.
“Organization increases managerial efficiency.” How ?
Answer:
The best organization increases managerial efficiency. The best and effective organization helps in achieving objectives easily. The best organization means good employees, workers and management. Better environment helps in the efficiency of organization. Increase in managerial efficiency is because of specialization in an organization. A good organization provides training to its employees. These qualified and trained people make full utilization of various resources.

Question 26.
What are the characteristics of informal organization ?
Answer:
Following are the characteristics of informal organization :

These type of organizations are formed spontaneously.
These organization have common interest.
It is a voluntary organization.
These organizations have no concern with manual and charts.
These organization can be legal or illegal.
It is a part of formal organization.
In these organization the relationship is based upon personal understanding.

Organization Long Answer Type Questions

Question 1.
Distinguish between formal and informal organization.
Answer:
Differences between Formal and Informal Organization :

Question 2.
What is formal organization ? Explain any four features.
Answer:
The different types or forms of organizations are classified on various basis. One of the type is formal and informal organization.
Formal organization : It is an official structure of activities, roles and authority relationship which is planned and executed by management for achieving organizational objectives. In this organization every individual belongs to one work group only and works under one superior only. It follows official chain of command.
Characteristics of formal organization : Following are the characteristics of formal organization:

This type of organization is established for general objectives.
Organization structure is determined by top level.
Authority and responsibility are clearly defined in formal organization.
The relationship.is determined according to the jobs and its nature.
Formal organization aims at achieving predetermined objectives.
Every individual belongs to one work group only and works under one superior.
In this type of organization policies, procedures and plans are written.

Question 3.
What is informal organization ? Explain its characteristics/features.
Answer:
Informal Organizations: Informal organization is the result of working together and social interactions. It has no predetermined purpose. It achieves social satisfaction. In this type of organization there is no prescribed channel of communication. There are no set or fixed rules in this organization. The examples of this organization are relationship between travellers, players, pilgrims, etc.
Definitions :

(1) According to Keith Davis, “Informal organization is that network of personal and social relationships which is not established or required by formal organizations.”

(2) According to C. I. Barnard, “Organization is informal when aggregate inter-personal relationships are without conscious joint purpose.”

Characteristics of informal organization : The characteristics of informal organization are as follows:

These type of organizations are formed spontaneously.
These organizations have common interest.
It is a voluntary organization.
These organizations have no concern with manuals and charts.
In this organization the relationship is based upon personal understanding.
These organizations can be legal and illegal.
It does not have a clear and well defined structure.
It emerges to meet the social and cultural needs of the members of the organization.
It is a part of formal organization.
The rules and regulations in this organization is not in writing.
It may or may not follow official chain of command.

Question 4.
What do you mean by delegation of authority ? What are its elements ?
Ans.
Delegation of authority: Granting authority and responsibility regarding specific job to subordinates is called delegation of authority.
The process or elements of delegation are as follows :

1. Assigning of duty : The first and important element of delegation is assigning of duty or task or responsibility. Before the task is assigned, the superior must:

Determine the results expected from subordinates
Identify the tasks to be assigned
Define the tasks to be assigned. The original officer gives less important or routine duties to subordinates while the original officer should himself perform the important, complicated and secret work.

2. Granting of authority : Without authority nobody is going to perform the duties. Thus for completion of work it is necessary to grant authority along with assigning of duties. In the words of Koontz O’Donnell, “Actually the authority vested in a managerial position is the right to use discretion, the right to create and maintain an environment for the performance of individual working together in a group. Thus all needed authorities should be delegated for the fulfilment of a responsibility.

3. Creation of responsibility : Responsibility means holding an individual answerable for final results. Delegation is an art of getting work done effectively not escaping from responsibility to superiors. According to Allen, “Accountability or responsibility is the obligation to carry out responsibility and exercise authority in terms of performance standard established.”

Acceptability of delegation. A person can accept or reject an assigned task. If the delegated authority rejects the task then the delegated management with assign it to another capable employee therefore acceptability of delegation is important.

4. Evaluation and control of internal activities : It is the last step of the process of organizing every subordinate is responsible for the task assigned by his or her authority. Higher authorities evaluate the deployed tasks to their subordinates assures its process and avail the power of authority.

Question 5.
What is decentralization ? Explain its advantages.
Answer:
Meaning : Decentralization is the opposite of centralization which means systematic delegation or dispersal of authority at all levels of management and in all departments of the organization. In this process subordinates are given more role and importance in the management and organization. It is the top level management which decides introduction of decentralization in the organization.
Definition : The major definitions of decentralization are as follows :

1. Everything that goes to increase the importance of the subordinates role is decentralization. —Henri Fayol.
Following are the Importance or advantages of decentralization:

1. Quick decision making: Since the workload of managers at top level is reduced so they are free to make decisions which are speedy in nature,

2. Reduces the burden of managers: The most important benefit of decentralization is that it reduces the burden of managers at top level. The work is assigned by the managers to the subordinates which brings relief to the top level management.

3. Motivates subordinates : Managers or the top level management authorises the subordinates to take decisions independently which increases their morale and motivates them towards the betterment of organization.

4. Democratic management: Decentralization facilitates democratic management. It shares authority and responsibility between managers. It also avoids concentration of power.

5. Helps in facing competition : Today’s competition can be faced effectively only when a person is able to take and implement decisions. This can be performed only when the authority and responsibility of decisions is provided by organization. Thus decentralization helps to face competition effectively.

6. Training and Development: Through decentralization training and development is automatically directed or followed. Decentralization helps in providing training to subordinates and makes them specialised in their work.

7. Incentives to workers : Decentralization provides job satisfaction to workers by giving them independence and participation in the activities of organization which increases the morale of employees.

Question 6.
Distinguish between divisional and functional organization.
Answer:

Question 7.
Explain the various advantages and disadvantages of formal organization.
Answer:
Formal organization : It is an official structure of activities, roles and authority relationship which is planned and executed by management for achieving organizational objectives. In this organization every individual belongs to one work group only and works under one superior only. It follows official chain of command.
Characteristics of formal organization : Following are the characteristics of formal organization:

This type of organization is established for general objectives.
Organization structure is determined by top level.
Authority and responsibility are clearly defined in formal organization.
The relationship is determined according to the jobs and its nature.
Formal organization aims at achieving predetermined objectives.
Every individual belongs to one work group only and works under one superior.
In this type of organization policies, procedures and plans are written.

Merits of formal organization : Following are the merits of formal organization :

Objectives can be easily achieved through this organization.
There is unity of order and direction in this organization.
Stability persists in this organization. .
There is easy and effective coordination and control over activities.
Responsibilities are fixed in case of failures.
There is clear determination of duties, authorities and responsibilities.
In this type of organization reasonable and balanced division and subdivision of activities.
Advantages of specialization and division of work can be achieved.
All activities are performed according to rules and regulations.
The resources are utilized up to the maximum extent in these organizations.

Demerits of formal organization : Following are the demerits of formal organization:

There is lack of flexibility in these organizations.
In these organizations there is always problem of control and coordination.
Red farism develops in this organization.
There is lack of initiative informal organization.
Sometimes power and authority is misused. .
Formal work and communication is not having importance in this organization.

Question 8.
Differentiate between Delegation and Decentralization.
Answer:
Differences between Delegation and Decentralization :

Question 9.
Distinguish between Authority and Accountability.
Answer:
Differences between Authority and Accountability :

Question 10.
Write the essentials of good organization structure.
Answer:
Essentials of good organization structure :

1. Clear lines of authority : There must be a clear line of authority running from the top to bottom of the organization. It is achieved through delegation by step from the highest executive to the lowest worker having the least responsibility and no authority over others. Failure to clarify the line of authority result in friction, politics and inefficiencies.

2. Adequate delegation of authority : Every person in the organization must get adequate authority to meet his obligations according to situations. Authority is vested in the top most executive and is delegated to his subordinates wherever necessary to meet their obligations. If sufficient authority is not delegated, the top most executive or the person vesting the authority, faces various problems such as bottle-neck in decision-making, delay in decision implementation, pressure on higher level and less motivation to subordinates. These all problems hamper the growth of the organization.

3. Minimum managerial levels : The managerial level in an organization should be kept minimum as far as possible. The greater the number of levels, the larger the chain of command and the longer the time in travelling the message up and down. Though the number of levels is not certain, yet it serves as guide-line.

4. Unity of direction : Every person in the organization should be directed only by one boss as far as possible relating to a single major function. Multiplication of direction may create confusion and may lead to role conflict.

5. Application of Ultimate Responsibility : The authority flows from superior to subordinate along with the responsibilities. The higher level manager is not relieved of his responsibilities for the acts delegated to the subordinates. He is responsible for his own duties and the duties of his subordinates.

6. Span of Control: Span of control refers to the number of subordinates a manager can directly supervise. There is a limit on this number but it cannot be applied universally because several factors such as nature of superior and that of a subordinates, communication techniques, etc. affect the span of control.

7. Simplicity : Taking into account the essential network but leaving no room for confusion and ambiguity the organization structure should be designed as simple as possible. Too many levels or communication channels, or committees, or multiple of command or too much coordination often create more problems rather to solve them.

Question 11.
Describe the objects of organization.
Answer:

1. Economy in production : The main object of organization is to bring economy in production. It means production of goods at minimum cost.

2. Economy in time and labour : In organization, best machines, equipment and best methods are applied and so enough time and labour of the work are saved.

3. Cordial relations between labour and capital : To establish relation between labour and management is one of the object of organization.
Safeguard the interest of the labour and capital.

4. Spirit of service : Due to social consciousness, the object of every businessman is to serve first then profit. So, every organization in present time has the object to serve.

Question 12.
Describe characteristics of project organization.
Answer:

This system is adopted to perform any specific project
After completion of the project its existence ends
Working team is constituted with persons of special ability.

Question 13.
Explain briefly the process of organization.
Or
Method of organization.
Answer:
Following are the steps of organization :

1. Establishment of objectives: The first step of organization structure is establishment of objectives. In the object of organization, those activities should be clearly explained for which organization is built.

2. Determination of activities : The second step in organization is determination of activities and its division. While dividing activities the organizational objectives must be kept in mind.

3. Grouping of activities : The next step involves grouping of activities as purchases, sales, advertisement, marketing, production etc. Different departments are set up for that purpose.

4. Allocation of work : It involves allocation of work on the basis of skills and specialization of employees. The principle of right job for right person is followed while allocating work to employees.

5. Delegation of authority : It is not possible to execute activities without authority. Therefore along with work, the authority is also delegated to the employees.

6. Coordination : For coordination, employees and officers are introduced to each other and everybody’s working place, work, right, duties and relation to each other are specifically mentioned.

Question 14.
Describe the characteristics of organization.
Answer:

1. Organization is a group of people : One person cannot be defined as organization. So, there should be at least two or more persons. There is no restriction on maximum number.

2. Specific objective : Any good organization has specific objectives. A gathering of people without a purpose is not an organization.

3. Division of work : For efficiently achieving goals, the work at hand should be divided and delegated. For example, the activities of an organization may be divided under purchase, sales, finance, personnel, production, etc,

4. Universal existence : Organization exists universally, irrespective of size of the company. All spheres or fields of society like politics, business, schools, families, etc. have organization though the objective may be different.

5. Leadership and formal relations : Organization is also characterized by the presence of leadership and formal relations among the members of the group.

6. Effective communication and coordination : An efficient organization necessitates effective communication as a requisite element. Proper communication and coordination between various levels of the organization results in easy execution of work.

Question 15.
“Write the characteristics, advantage and disadvantage of informal organization.
Answer:
Characteristics of informal organization : The characteristics of informal organization are as follows:

These type of organizations are formed spontaneously
These organizations have common interest
It is a voluntary organization
These organizations have no concern with manuals and charts
In this organization the relationship is based upon personal understanding
These organizations can be legal and illegal
It does not have a clear and well defined structure
It emerges to meet the social and cultural needs of the members of the organization
It is a part of formal organization
The rules and regulations in this organization is not in writing
It may or may not follow official chain of command.

Advantages of informal organization : Following are the advantages of informal organization:

It removes the weakness of formal organization
It is an effective means of communication
Through this organization the spirit of cooperation and coordination develops
It provides social status and sense of satisfaction
Employees are motivated towards work.

Disadvantages of informal organization : Following are the disadvantages of informal organization:

Illegal activities are encouraged in these organizations
These organizations create confusions by spreading rumours
High level management is generally opposed by this organization
Some of these organizations are against democracy and secularism
These organizations are generally have short life.

Conclusion : Generally all organizations have some merits and demerits. Informal organization is complementary to formal organization

Question 16.
Write the principles of organization.
Answer:
Golonel Lyndall Urwick has given following principles :

1. Principle of objectives: The objective of an enterprise should be the objective of whole organization, because every organizational aims at achieving aims of an enterprise. Objectives should be made clear at every level.

2. Principle of specialization : Every person has got particular quality of doing particular work. One person should be allotted one work only this will increases his ability of doing that particular work.

3. Principle of coordination : The main aim of organization should be to maintain coordination among various elements, through which objectives can be achieved.

4. Principle of authority : Authority should not be vested in one hand, but it should be distributed accordingly. So that workers take interest in the work and a feeling of responsibility also arises.

5. Principle of continuity : According to time and requirement, changes should be done. In other words, an organization should be flexible, otherwise it would not be successful. One should recognize the speed of time.

6. Principle of responsibility: After assigning authority, care of responsibility should also be taken. This increases the desire of working more and quality of work. Every worker should be well aware that he is responsible to whom.

7. Principle of definition : Every employee should be made well aware of his duties and responsibilities. Every duty, position etc. in every organization should be clearly prescribed in writing, which helps in quick achievements of goals.

8. Principle of uniformity: There should be uniformity in authority and responsibility given to various officers. But there should be no dispute between authority of two officers which will result in indiscipline and lead to delay of work.

9. Principle of span of control: Area of control of each manager should be restricted, this results in better performance and it becomes easy to carry and complete work. ‘Urwick’ has said that “Maximum a person can handle five to six persons”. According to the nature of business, control should be restricted.

10. Principle of balance : Balance should be made between different units of an organization. Balance increase discipline in the management of a business and helps in the success of the organization.

11. Principle of unity of command : A worker takes orders from his superior boss only and not from others, he is answerable to his boss only. If he has two boss, then confusion will be created and if he listens to one boss and not other, this will create conflict. Therefore, unity of command is necessary for success.

12. Principle of simplification : Organizers should make such policies which are simple, easy, understood by everyone and impressive. If the elements of an organization or policies are not simple, it will create problem.

13. Other principles: Some modem principles showed by experts are :

Principle of efficiency
Principle of unity of objectives
Principle of participation
Principle of formality
Principle of inspection and balance
Principle of surety
Principle of transferring ownership.

Question 17.
Distinguish between line of organization and staff organization.
Answer:
differences between Line and Staff organization :

Question 18.
Distinguish among authority, responsibility and accountability.
Answer:
Differences among Authority, Responsibility and Accountability.

MP Board Class 12 Business Studies Important Questions

MP Board Class 11th Accountancy Important Questions Chapter 19 Computers in Accounting and Computerised Accounting System

October 31, 2019

MP Board Class 11th Accountancy Important Questions Chapter 19 Computers in Accounting and Computerised Accounting System

Computers in Accounting and Computerised Accounting System Important Questions

Computers in Accounting and Computerised Accounting System Objective Type Questions

Question 1.
Choose the correct answer:

Question 1.
What is MIS –
(a) Management information system
(b) Micro information system
(c) Middle internet system
(d) Mass information system
Answer:
(a) Management information system

Question 2.
What is C.P.U. –
(a) Central processing unit
(b) Central unit of production
(c) Central progress unit
(d) Central power unit
Answer:
(a) Central processing unit

Question 3.
Mouse is a –
(a) Input device
(b) Output device
(c) Input and output both
(d) None of these
Answer:
(a) Input device

Question 4.
Super computers are –
(a) Large in size and speed and storage are more than else
(b) Small in size and less speed
(c) Same size and same speed
(d) All of above
Answer:
(a) Large in size and speed and storage are more than else

Question 5.
Software are:
(a) 5 types
(b) 6 types
(c) 4 types
(d) 8 types
Answer:

Question 2.
Fill in the blanks:

Computer is an …………… device.
Compact disk is a ………….. unit.
Monitor is ……………. device.
The meaning of hardware is ……………. form we can touch it.
In …………… programming is possible.

Answer:

Electronic
Input
Output
Physical
Software.

Question 3.
State True or False:

In data base we can benefitted of co – operation and unity / uniformity.
Digital computer is not done the calculation of digits.
In analog computer we can find information continuously.
The speed of super computer is less.
Computer help in accounting from Journalise, analysis to conclusion.

Answer:

True
False
True
False
True.

Computers in Accounting and Computerised Accounting System Very Short Answer Type Questions

Question 1.
What is computer?
Answer:
Electronic Device.

Question 2.
What is CPU?
Answer:
Central processing unit.

Question 3.
Which computer is used for calculation?
Answer:
Digital computer is used for calculation.

Question 4.
What is known as brain of the computer?
Answer:
CPU.

Question 5.
Write the name of any two application software?
Answer:

Excel
Tally.

Question 6.
Write the name of any two languages used by a computer.
Answer:

BASIC
COBOL.

Question 7.
What do you mean by computerised Accounting?
Answer:
When the whole accounting process is done by computers then it is called automation of accounting process or computerised Accounting.

Question 8.
What do you mean by MIS reporting?
Answer:
The system which provides essential informations related to different fields is known as Management Information system. .

Question 9.
What do you mean by Binary system?
Answer:
The system which the computer uses is called binary system. In this system the informations in computer are recorded in two digits ‘0’ and ‘1’.

Question 10.
Write one difference between RAM and ROM.
Answer:
RAM is temporary memory while ROM is permanent memory.

Question 11.
How many bits are there in one byte?
Answer:
8 bit.

Question 12.
How many bytes are there in 1 kilobyte?
Answer:
1024 bytes.

Question 13.
What is DBA?
Answer:
Database Administration.

Question 14.
What are the language of database?
Answer:
DBML, DDL.

Computers in Accounting and Computerised Accounting System Short Answer Type Questions

Question 1.
What is computer?
Answer:
Computer is a machine of modern age. It is an electronic and electrical device which perform various tasks such as collection of data and information, preparation of list, classification, analysization, comparison and presentation of records and interpreting the results. Computerization has made all the three level works of accounting very easy.

Question 2.
What is Accounting information system? Write its definition and objectives.
Answer:
Accounting information system is an old and traditional method prevaling from the ancient times. It is used not only by commercial organization but also by non – commercial organizations. In a commercial organization the accounting information system is used from the inception of any financial transaction to its end. This system is used not only by the accounting department but also by other departments like purchases, Sales, Production, Cash, Commercial, Human resources equally.

Meaning and Definition:
Accounting information system is a collection of resources, designed to transform financial and other data into information. Accounting information system collects the data, keep proper records of financial accounting, transforming the desired information in a specific way and disseminate the information to the various users- internal and external to the organization. Using the collected materials and data with other information system is a special feature of accounting information system.

Definition:
“Accounting information system is a system which disclose the financial aspect of the data collected, processed and summarised.”

Objectives/Characteristics of Accounting information system:

This system completely depends on business transactions.
This system is capable of storing the financial transactions along with presenting them its information in a desired way.
This system provides such reports which can fulfill the necessity of all the desired information. This information may be useful for its users internal as well as external.
This system provides the figure for the budget.

Question 3.
What is Flow chart?
Answer:
Before making any programme firstly by the programmer has to know process of its work (which program is made) after that programmer writes it down in his normal
language in sequential instructions which is called Algorithm. After this presentation of it through various figures is called Flow chart, which is written as progam in language of computer.

Thus with the help of flow chart possibility of mistakes reduces in writting complicated program.
Chapter 19 Computers in Accounting and Computerised Accounting System 1

Question 4.
List the special utilities of Computerized Accounting over manual.
Or
Prove that Computerized Accounting is superior than manual.
Or
Write down the characteristics of Computerized Accounting.
Answer:
Computer is more capable than humans: Due to its following characteristics it is assumed more superior than human :

1. Automation – Once the data are feed in the computer and once the instructions are given, it every time do its work automatically.

2. Memory – Computers have internal permanent memory which can store various informations in large quantities. It can also store information on its external memory like hard disc, Floppy disc, Magnetic tape etc.

3. High Speed – Computer can perform its work in very high speed. It can analyse many information in a few second. It can do many calculations in 1 second.

4. Accuracy – All the work done by computers are accurate. It is to be noted that if wrong information is given to computer then it will do wrong analyse and point out the error.

5. Multi Tasking – Computers are used for various purposes such as calculations, erasing data, controlling machines, entertainment. Railways and Airways ticket counter etc. It is a main feature of computer and so it is used for different purposes.

6. Efficiency – Computers can work for long durations as it is a machine and do not get tired. Its efficiency depends on processor and ROM.

Question 5.
Discuss the advantages of computerized Accounting system.
Answer:
Following are the advantages of computerized Accounting system over the manual Accounting system:

1. High speed – Accounting data is processed faster by using a computerised accounting system. In this system the financial statement can be immediately resnted.

2. Accuracy – In computerised Accounting system, the possibility of errors is minimised as the primary accounting data is entered only once for preparing various accounting reports and for consequent usage and processes.

3. Reliability – Information received from computerised Accounting system is more reliable.

4. Save labour – The accounting process can be completed with less labour by computer. It helps to save the labour of the labourers.

5. Save time – Final account can be prepared in less time with the help of computers. Which save time and help to take quick decision.

6. Information in time – Computerised Accounting system helps management in preparing plans, to take quick decision and in control by providing concerned informations quickly and in real time.

7. Reduce cost – Maintaining books of accounts by computerised Accounting system incur low cost in comparison to manual Accounting system.

Question 6.
Write the demerits of computer.
Or
Write the limitation of computer.
Answer:
Demerits/Limitation of computer are:

1. Computer can’t think:
Computer works on a predetermined programme. It cannot think by itself and it require instructions on every step. Success of computer depends on human’s capability who has made it and used it.

2. Computers cannot decide:
Computer does help in taking decision but itself cannot decide. To make decision is a complicated process. To make computer capable of deciding program is to be given early.

3. Computer can’t express their ideas:
In analysis based on any subject ideas have great importance. Although computer is helpful in analysis based on data but it cannot express its ideas i.e., it cannot analyse the work to be logical or not.

4. Computer can’t Implement:
Although computer can store large amount of data but on the basis of these data determination of policies and its operations is possible by human only. Computer also lack practical knowledge.

5. Lack of Emotion:
Computer is a machine. It does not have emotions and natural instincts. Although human have invented memory for computers but no form of human heart or soul has been made for computers.

Question 7.
Discuss the objectives of Accounting information system.
Answer:
Main objectives of Accounting information system is to ensure that users get reliable informations and be capable of fulfilling constitutional expectation of the organization. It also has following objectives.

Sales order Processing – It prepare invoices by processing order sent by customers, prepare sales analysis and data for inventory control.
Inventory Control – This system consider various levels of goods and of various changes in it.
Account Receivable – Data obtained by purchases and payment by customers with this account of due amount is maintained so that when required it can be checked.
Account payable – This system keeps the record of data relating to goods purchased from seller and payment made to them and when required can be checked that how much organization has to pay.

Question 8.
Explain the output devices in short.
Answer:
Output Unit: It is that part of computer system which communicate information (result) to the user (after processing). Whatever result, report or answer which computer has to give us that computer shows it in its monitor, video display unit (VDU) in such language which we can easily read and understand. Other than monitor there are other output devices like hard copy printer which print copies of that informations which is shown in the screen. Technical drawings, charts etc are also there. Today a new device is also available in which like human sound of speaking can be heard, it is called speech synthesiser.

Question 9.
Explain the Input devices in short.
Answer:
Input Unit: Input unit is that part of computer which accept data and instructions from the user to process. Devices which we use to input informations in the computer are called input devices. To insert data in computer there are many input devices. They are “Keyboard, Mouse,”, Compact disc, Optical scanner, Bar code reader, smart card reader etc.

1. Keyboard:
For exchange of information with computer, keyboard is primary input device. Keyboard of computer is like traditional typewriter. Data which we want to feed in computer can be typed in binary language through keyboard and can be feeded.

2. Mouse:
Mouse is another input device which select objective by pointing on monitor. Joint usage of mouse and keyboard is very helpful to do various activities by computer user.

3. Floppy Disc:
Floppy disc is used for immediate data collection by which it can be loaded later in the computer for processing: A floppy disc can store computer data of 1 – 44 MB.

4. Compact Disc:
Compact disc is brought into use like floppy disc to store data which is later used by loading in computer for processing. Consumer for distribution of software generally use compact disc. If compact disc writer is attached with the computer then data can be collected in compact disc also. Today to collect informations DVD and pen drives are also used.

Question 10.
Explain the main characteristics of Accounting Information system.
Answer:
Main characteristics of Accounting Information system:

1. Financial transactions – Accounting information system relates only to financial business transaction i.e., which can be presented in form of money.

2. Historical Data – AIS are mainly related to historical data i.e. of historical nature but this data is used for requirement for future and is helpful in preparing policies and working of future.

3. Easy – AIS are easy and preplanned.

4. Strict Control – Operated through use of computer, AIS needs more control be¬cause there is more possibility of external i
nterference.

5. Proof in the Court – Informations collected in AIS has statutory validity. When required it can be produced before court as proof or evidence.

6. Internal Source – For AIS mostly source of data is internal because they are mostly related to transactions of business firms. Thus it is considered more controlled and accepted.

7. Users or Interested Group – AIS fulfil need of both internal and external users. In external users shareholders, Investors, Sellers, Customers, Statutory institution, Stock Market etc are included whereas in Internal user owner of business, manager and employes are included.

Question 11.
Differentiate between Hardware and Software.
Answer:
Difference between Hardware and Software:
Chapter 19 Computers in Accounting and Computerised Accounting System 2

Question 12.
Draw a diagram showing the main parts of a computer in square shape.
Answer:
Chapter 19 Computers in Accounting and Computerised Accounting System 3
Question 13.
Write the names of three organs of Transaction Processing System (TPS).
Answer:
Transaction processing system (TPS) are among the earliest computerised system catering to the requirement of large business enterprises. TPS establish relationship with external and internal information of every enterprise and there is special arrangement of sequence for the solution of every problem. When the department request its own sales department to buy the required goods it is known as internal transaction. Whereas when the purchase department buy the goods from any outside seller then it is known as external transaction.

Three organ of transaction processing system are:

Input
Process
Output.

Question 14.
What is the contribution of computer in Accounting?
Or
What is the role of computer in Accounting?
Answer:
Computer is an electronic device which collect the facts and figures, compare them, bring changes in them, assemble them and retrieve them, is nowadays widely used in Accounting. Computers have in built system of calculation, collection of related data, processing and give the results in the form of reports for taking decisions to the authorities. It is not restricted for making pay roll only but can do other work also like maintaining record, making entries, classification, analysis and interpreting the results.

In the following field of Accounting, Computer has important contribution:

Collection of accounting transaction in a systematic manner.
Proper classification and analysis of accounting transaction.
Providing quick information related to debtors, creditors and other reserves.
Show the flow of cash by preparing cash flow statement.
Self balancing of ledger A/c and important contribution in the preparation of final accounts.
Providing quick and accurate financial information for legal necessity in time.
Computer also contribute in payroll accounting. Preparation of payroll in big company is very convenient.
By the help of computer store Accounting can be easily and properly designed. By the help of computer, position of daily stock, value of stock, purchase requirement etc. can be easily maintained.

Question 15.
Discuss the different types of Accounting packages.
Answer:
Accounting packages are of three types:

Readymade software/Ready to use software
Customised software
Tailor made software

1. Readymade Software:
Readymade software is available in the market to be used directly. Readymade software is used in large scale because it is prepared on the basis of normal conditions. At present in the market the following readymade software are available.

Tally
Example
BUSY
The professional Accountant.

Tally software is mostly used. Tally software is multi use software. This package is suitable for small concerns, whose accounting work is limited.

2. Customised Software:
When changes are done in readymade software to make a program useful to fulfil the specific objective of the user, it is called customised software. For example-according to demand of user changes made in the design of invoice. As in readymade software changes are made as per user’s requirements, expenses on such changes are beared by the user themselves.

3. Tailor made Software:
When software is prepared after mutual understanding be-tween the user and software maker as per user’s requirements, it is called Tailor made software.

Question 16.
How many types of report are there?
Answer:
Various types of reports are:

Customer Report – Such report which is prepared as required by the manager which shows first 20 customers, first 20 customers who have not paid or such customer’s name who have not purchased anything on last three years etc.
Supplier’s Report – Such report in which various aspects related to suppliers are shown as per manager’s requirement.
Summary Report – It is a brief report of all activities of the organization for example- Profit and Loss account.
Responsibility Report – Responsibility report is prepared by responsible manager of the organization like a purchase officer prepare purchase report showing all aspects of purchases.
Exceptional Report – This report is prepared in some special circumstances. For example – inventory report in which it is described that stock is less or more than required level.
Financial Report – Managers demand quarterly financial statement for examining position.

Question 17.
As per working system, how many types of computer are there?
Answer:
As per working system computers can be classified into following 3 types:

1. Digital Computer:
Digital means number. Digital computer calculates numbers, generally computer are used to calculate. In Digital computer all instructions and figures are secured in the form of binary digits. Mostly digital computers are used.

2. Analog Computer:
Analog computer does not calculate numbers. Analog computer depends on measuring activity. In analog computer continuously information are received in form of signals converting which it present in figures. Speedometer, Voltmeter, Thermometer etc. are analog devices. In this signal received continuously are presented. Radar is an analog computer. Memory of analog computer is not very much. 100% pure result is not obtained from analog computer.

3. Hybrid computer:
Hybrid computer consiss of joint features of analog and digital computer. With hybrid computer both act of measuring current and calculating figures is done. It is mostly used by scientists. In satellite Hybrid computer works. ECG machine is also a hybrid computer.

Question 18.
On the basis of speed and storage capacity, how many types of computers are there? Explain them briefly.
Answer:
On the basis of speed and storage capacity computers are classified into four
categories:

Micro Computer
Mini Computer
Main Frame Computer
Super Computer.

1. Micro Computer:
Micro computer are the smallest in size. Their price is also very less. Generally micro computer is brought in use. Word length of micro computer is from 8 to 32 Bits. It can be used once by one person only. Its speed and storage capacity is very less. It is also called RC. or personal computers. Modern PCs are like pentium P5 and pentium P6 etc.

2. Mini Computer:
Mini computers are comparatively bigger than micro computer. It is used at large scale. Word length of it is 32 Bit or more. A’mini computer can be used by 40 per cent at the same time. PDP – 1111/45 VAX – II etc are mini computer. Its speed is 10 to 30 MIPS (Million Instruction Per Second)

3. Main Frame Computer:
Mainframe computer is comparatively big in size than mini computer. It is used in large scale to process figures and calculate complications. Its word length is up to 64 Bit. UNIVAC 1190, JBM 3020 etc. are mainframe computer

4. Super Computer:
They are very big in size. Speed of these computers and storing capacity is very large. This computer has speed of 400 to 10,000 MIPS. Its word length is about 96 Bit. In this CPU is parallely connected CRAY-1, CRAY – 2, HITACHI – 81020 etc. are foreign super computer and PARAM and ANURAG are Indian super computer.

Question 19.
State the four basic requirements of a Data base Application.
Answer:
The following are the four basic requirements of a Database Application :

Front – end Interface: It acts as an interactive connecting link between the user and the database oriented software through which the user communicates or interacts to the back-end database.
Back – end Database: It is the data storage system that is hidden from the users. It responds to the requirement of the users to the extent the user is authorised to access.
Data Processing – It is a sequence of actions that are taken to transform the input data into useful information for taking various decisions.
Reporting System – It is an integrated set of objects that includes all the relevant information that constitutes a report.

Question 20.
What is Entity Relationship Database?
Answer:
Under the database management system, the application of model database in commercial way is available in the database management system and it is the process of its application. Previously the commercial system was based on network approach. The ER model entity relationship model is actually the generalisation of this model. This relationship also permits the outsider also.

It is a popular conceptual data model, which is mostly used in database oriented applications. The major elements of ER model are entities, attributes, identifiers and relationship that are used to express a reality for which a database is to be designed. The model is best depicted with the help of ER symbols.

Question 21.
What do you mean by Structured Query Language?
Or
What do you understand by SQL?
Answer:
Main objective of SQL is to make enquiries from database. Till we cannot query or use the stored data in database it is useless to us. Query is a question which is written in SQL. It is very easy to work in SQL on this, instructions is to be given to the user that what and how is to be done. For example In IBM and DB7 in UNIFY Corporation in UNIFY at present SQL is used.

Question 22.
What do you mean by Accounting data? How does financial statements get to final stage after passing through various levels?
Answer:
Data related to accounting process based on computer is known as accounting data. Database is used to store the data related to recording in the computer. The format of database process begins with the reality, which is expressed in the form of conceptualisation of an Accounting reality. The process of database can be explained with the help of Flow chart which clarify how the reality i.e., conceptualisation of reality reaches to the final design of database through various level.
Chapter 19 Computers in Accounting and Computerised Accounting System 4

Question 23.
What is Normalization?
Answer:
Normalization is a process of transformation of the conceptual scheme of the database into a computer representable form. The main objective of normalization is to minimise unnecessary repetition of information. This meas that information should be stored only once. So normalization avoids wastage of storage or space and increase in the total size at the data stored.

Question 24.
Explain the symbols used in Entity Relationship Model.
Answer:
Chapter 19 Computers in Accounting and Computerised Accounting System 5

Question 25.
What is the meaning of Database? Describe the basic component of database in short.
Answer:
Data is such facts which are recorded and which has a definite meaning. Data is set of informations which is basis of all important managerial decisions. All such informations which are collected to prepare useful report is called database. Database is collection of related data.

Data are collected and stored in such a way that new data may be added to stored data in database, to make change in it and to obtain data a general and controlled method shall be sufficient. A database method is a complete method to store related files in which stored data’s detail and complete description are there. Database is an integrated collection of logical complete records and files.

According to G. M. Scott “Database is a computer file system which is necessary to use a special file organization to update quickly all personal records in all programmes, to update related records, make it possible to access easily all records which are necessary to be collected to prepare a special report or to prepare a report of special objective.”

Type of Database:

Relational Database – This is main and important type of database. It is a detailed database in which data is shown in the way by which it can be accessed easily and it can be reconstituted in many ways.
Distributed Database – This database is that database which is spread between two points in a net.
Object Oriented Database – It is that database which shows object classes and sub classes together.

Basic component of Database:

Bit or Binary Digit – Bit is one of Binary digits i.e., it may be 1 or 0.
Byte – One row of eight bit is called byte.
1 Byte = 8 Bits
1 Kilobyte = 1024 bytes.
Data – Collected few data which has logical meaning is called data. So data are three types:

- Numeric data : It is in numbers like -1, 2, 3, – 2456, -23, 345608
- Alpha data : They are in the form of Alphabets from A to Z. e.g., RAM, RAMESH, YES, NO.
- Alphanumeric data : They are in both forms numbers and alphabets like 24 March, 2011.

Question 26.
What is data processing cycle? Describe the stages of data processing.
Answer:
Data processing cycle:
Data processing involves the techniques of collecting, storing, relating, interpreting and computing data items so that meaningful and useful information for decision making may be obtained. In short, Data processing refer to the activities associated with generation of information. Various stages of data processing are:

Collection of Data – Vouchers accounting data is collected by transactions by which necessary document which is called voucher is created.
Input of Data – Accounting data included in voucher is feeded in storage device of computer.
Storage of Data – After storing data in computer, it is processed.
Manipulation of Data – Under data processing collected data is manipulated as per user’s requirement.
Generation of Information – Required report of information obtain output which is useful and meaningful.

Question 27.
Explain and Define Database and discuss its types.
Answer:
Data is such facts which are recorded and which has a definite meaning. Data is set of informations which is basis of all important managerial decisions. All such informations which are collected to prepare useful report is called database. Database is collection of related data. Data are collected and stored in such a way that new data may be added to stored data in database, to make change in it and to obtain data a general and controlled method shall be sufficient.

A database method is a complete method to store related files in which stored data’s detail and complete description are there. Data base is an integrated collection of logical complete records and files. According to G. M. Scott “Database is a computer file system which is necessary to use a special file organization to update quickly all personal records in all programmes, to update related records, make it possible to access easily all records which are necessary to be collected to prepare a special report or to prepare a report of special objective.

Type of Database:

Relational Database – This is main and important type of database. It is a detailed database in which data is shown in the way by which it can be accessed easily and it can be reconstituted in many ways.
Distributed Database – This database is that database which is spread between two points in a net.
Object Oriented Database – It is that database which shows object classes and sub classes together.

Question 28.
Write the objectives of Database Management System (DBMS).
Answer:
Following are the objectives of Database Management System:

Due to Central Data Management there is reduction in complex information system of the organization.
Additional and useless data are deleted. Such record where there is reoccurance of data are ended.
By central control on creation of data and definition depending on program data reduces.
Flexibility of information system increases.
Once when data gets stored then various types of user use it. As required data are used various objectives.

Question 29.
Explain the demerits or limitations of Database Management System (DBMS).
Answer:
Disadvantages or limitation of DBMS are:

Lack of expertise knowledge – For DBMS expert and experienced person is required so that it can be operated properly but there is lack of such persons everywhere or those who know programming they take high value for it.
Costly – Database Management System software are costly.
Higher Cost – Cost of hardware of Database Management System is high.
Increase in Security Problem – Due to DBMS problem of reliability of security arises because many users have access to database.
To apply this system many expenses are incurred.

Question 30.
What do you mean by Database? How is it different from Database Management System (DBMS)?
Answer:
Database is a group of interrelated tables, files and structure which prepare its format to fulfil requirement related to various informations of the organization. Two advantages of Database are:

1. Integrity:
It clarifies that all the various data and information are organized in a logical way. Its purpose is to reduce the excess data or to put an end so that the data could be accessed easily.

2. Participation:
It means that all authorised person can easily access to the related data. From the above it is clear that database is a group of related data which express the opinion of the commercial world which is known as reality. Data base Management involves creating, storing, modifying, deleting and adding data in files and using this data to generate report. The software that allows to perform these functions is known as data base management system.

Computers in Accounting and Computerised Accounting System Long Answer Type Questions

Question 1.
Differentiate among various Accountig Software.
Answer:
Difference among Accounting Software:
Chapter 19 Computers in Accounting and Computerised Accounting System 6

Question 2.
Distinguish between a Manual and computerised Accounting System.
Answer:
The following are some point of differences between Manual and computerised Accounting systems:
Chapter 19 Computers in Accounting and Computerised Accounting System 7

Question 3.
What is Computer? What are its main characteristics?
Or
Define Computer and write down its characteristics.
Answer:
Meaning and Definitions of Computer:
Computer is that electronic device which takes very less time to do various types of work. Technically, Computer is such an electronic device which takes data, processes it and following some predetermined instructions provide meaningful results (useful data)

Process made by computer can be clarified from the following figure:
Chapter 19 Computers in Accounting and Computerised Accounting System 9

On the basic of above figure computer can be difined as follows:
“Computer is an electronic device which inputs any type of row data and with the help of pre – determined instructions input data is analysed and meaningful results or information is given.”

According to international standards Organization:
“A computer is a data processor that can perform substantial computations including numerous arithmetic and logic operations without intervention of human operator during the run.”

According to the U.S. Institute:
A computer is a device capable of solving problems by accepting data performing described operations on the datas and supplying the results of the’operations. Thus, computer is a device which works on figures which is called data in computer language.

Features of computer – Following are features of computer:

1. Automation:
Any data or instructions once give to computer it can then automatically operate the process i.e., further human interference is not requried.

2. Memory:
Inside computer there is internal memory of it which it can store data in large amount. Computer in subsidiary equipments like hard disc, floppy disc, megnetic tapes etc. stores additional data.

3. High speed:
Computer works at high speed. It can analyse lakhs of instructions in just few secorids. lt can make crores of calculations in one second.

4. Accuracy:
In working of computer cent per cent purity can be seen. Remember that if wrong or default data is provided then result will be wrong as well.

5. Versatility:
One computer is used for many works, like calculation, deleting data, machinery control, entertainment etc. It is main feature of computer and due to this feature it is used in various fields.

6. Deligence:
Due to being machinery computer does not get tired, neither it feels hungry nor it gets distracted from its aim. It does its work from begining to end without any mistake carefully. Human after working for many hours feels the mental and physical tiredness but a computer never gets tired like humans.

7. Scientific approach:
A computer works in scientific approach. It works impartially and it does not have affect of thinking and feelings of any person.

8. Logical Decisions:
Computer on the basis of a determined condition is capable of taking decision. Such decisions are called logical decisions. Selection of best alternative among all alternatives is logical decision.

Question 4.
Describe the main elements of computer system.
Answer:
There are six parts or element of computer system:

1. Hardware:
In computer means those physical elements which we can see, touch or feel. Various devices used in computer system jointly are called hardware. In hardware the following computer devices are included.

Input devices Keyboard, Mouse, Light pen, Scanner etc.
Central processing unit (CPU)
Output device – Monitor

2. Software:
To obtain any result from computer, computer has to be given instructions in a special language. Set of instruction is called program and set of programs is called software. By only changing of software of one computer many types of work can be done. Like from one computer by one software payroll can be prepared, by another software accounting work can be done. In market various types of software are available in form of program recorded in a floppy disc. With every floppy disc, a manual is also provided in which procedure to use the disc and detail of program recorded in disc is given.

There are six types of software

Operating Software
Utility Software
Application Software
System software
Language software
Connectivity Software.

3. People:
People are those person who uses computer hardware and software to make, improve and use information system existing in computer memory. Those main people who are related to computer system are:

System Analysis – They prepare design of data processing system.
Operators – They operate computers.
Programmers – They write the program by which data processing system can be operated.

4. Procedures:
Procedures are those various activities which can be done in a certain way by which determined results may be obtained. Basically there are three types of procedures which are part of a computer system :

Software Oriented
Hardware Oriented and
Internal procedure.

5. Data:
Generally facts are called data. Data can be anything like bio – data of various applicants when computer is used for appointment of employees or marks of various students in various subject by which their result may be prepared or details of various travellers like name, age, sex etc. when computer is used for reservation for air or rail tickets etc.

Question 5.
Write down the advantages and importance of Database Management System (DBMS)
Answer:
Advantages and Importance of DBMS:

Sharing the Data – In DBMS all data are stored at one place by which all persons can easily access this data who has right to use these data. So same data is used by many manager.
Easy Storage of data – DBMS Simplifies manipulation in data and errors are also less in this.
Simple programme can be developed – In DBMS Query Language is used by which its user can develop simple program as per their requirement.
Greater Consistency – In DBMS most of the data is centralised at one place and by all managers these centralised data is used. In these data there is uniformity.
Data Dictionary Management – In DBMS Data Dictionary Management is also included by which any change in database like increase in data, deleting data or changes in data etc. get changed automatically in data dictionary.
Security – DBMS is helpful in maintaining security and updation of data.
Reduced Cost – DBMS helps in preparing report also without error prepares report in less time.
DBMS maintains independence of data.
By DBMS User can easily use the data.
Less time is taken in data processing and saves space for storage.
Due to DBMS less program is required to keep.

Question 6.
Explain the main components of ER Model.
Answer:
Components of ER Model:
ER Model is basis of ER diagrams which in view of end user presents conceptual database. There are four components of ER Model.
Chapter 19 Computers in Accounting and Computerised Accounting System 10
1. Entity:
In the real world any thing which has free existence is called entity. So person, place, event or concept related to which we store information in the system is called entity. Every entity has different features. In ER model the world entity does not mean one, single occurring entity but set of entities. In relational environment entity means table and not row. For example in the fol-lowing figure student is an entity:
Chapter 19 Computers in Accounting and Computerised Accounting System 11

In context of Accounting there are five types of entities:

Accounts
Vouchers
Employee
Accounts Types
Support Documents.

Accounting data are recorded by means of these entites.

2. Attributes:
Accumulated characteristics and features of entity are called attributes. For examples height of a person, weight, date of birth, education etc. are attributes. Similarly, code number of account’and their names will be called attributes.
Chapter 19 Computers in Accounting and Computerised Accounting System 12
Attributes, gets value from domain (or value sets). By these value obtained will be used as data in Relational Model. In the table below entities and attributes are given:

Each features of entity small measures which accumulated as data in database. Attributes may be of many types like:

Composite v/s Simple Attributes,
Single value v/s Multi Value,
Store v/s Derived Attributes,
Null Values when data are nine,
Complex Attributes etc.

3. Identifier:
Each entity has its own feature which has some specific value by which entity gets identification. For example attribute of student as entity is Roll No. which has special measure by means of Roll No. Student will be identified. Similarly attribute of accounts as entity is Code No. because it measure of data is of special category.
Chapter 19 Computers in Accounting and Computerised Accounting System 13
Entity Type accounting Database
An entity Type voucher with V. No. as key attribute