JODHAMAL PUBLIC SCHOOL, JAMMU

HOLIDAYS HOME-WORK
CLASS: XII SUB: ACCOUNTANCY
WEEK – 1

ACTIVITY 1: Worksheet on Ch 1 (Accounting for Partnership Firms - Fundamentals)

1. In case of partnership the act of any partner is:

(A) Binding on all partners
(B) Binding on that partner only
(C) Binding on all partners except that particular partner
(D) None of the above

2. Partner by estoppel partners are those who

(A) do not contribute any capital but get some share of profit for lending their name to the business
(B) contribute very less capital but get equal profit
(C) do not contribute any capital and without having any interest in the business, lend their name to
the business
(D) contribute maximum capital of the business

3. Which one of the following is NOT an essential feature of a partnership?

(A) There must be an agreement
(B) There must be a business
(C) The business must be carried on for profits
(D) The business must be carried on by all the partners

4. In the absence of Partnership Deed:

(A) Interest will not be charged on partner‟s drawings
(B) Interest will be charged @ 5% p.a. on partner‟s drawings
(C) Interest will be charged @ 6% p.a. on partner‟s drawings
(D) Interest will be charged @ 12% p.a. on partner‟s drawings

5. Girish and Satish are partners in a firm. Their Capitals on April 1,2023 were Rs. 5,60,000 and Rs.
4,75,000 respectively. On August 1, 2023 they decided that their capitals should be Rs. 5,00,000
each. The necessary adjustment in the capital were made by introducing or withdrawing cash.
Interest on Capital is allowed at 6% p.a. You are required to compute interest on capital for the year
ending March 31, 2024.

6. X and Y were sharing profits in the ratio of 2:1. On 1st April, 2020 they admitted Z for 1/4th share
in the profits. Z is guaranteed a minimum profit of Rs. 50,000 for the year. Any deficiency in Z's
share is to be borne by X and Y in the ratio of 3:2. Losses for the year ending 31st March, 2021
amounted to Rs. 1,20,000. Record necessary entries.

7. Mohan, Vijay and Anil are partners, their closing capitals being Rs. 30,000, Rs. 25,000 and Rs.
20,000 respectively. In arriving at these figures, the profits for the year ended. 31st March, 2021 Rs.
24,000 has already been credited to the partners in the proportion in which they share profits. Their
drawings were Rs. 5,000 (Mohan): Rs. 4,000 (Vijay) and Rs. 3,000 (Anil) for the year ending 31st
March, 2021. Subsequently the following omissions were noticed and it was decided to bring them
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into Account.
(i) Interest on Capital at 10% p.a. (ii) Interest on Drawings Mohan ₹250, Vijay ₹200 & Anil ₹150.

8. Ajay, Binod and Chandra entered into partnership on 1st April 2019 with capitals Rs. 3,00,000. Rs.
2,00,000 and Rs. 1,00,000 respectively. In addition to capital, Chandra has advanced a loan of Rs.
1,00,000. Since they has no agreement to guide them, they faced following issues during and at the
end of the year:
A. Ajay wanted interest on capital to be provided @ 8% p.a. but Binod and Chandra did not agree.
B. Chandra wanted that interest on loan be paid to him @ 10% p.a. but Ajay and Binod wanted to
pay @ 5% p.a.
C. Ajay and Binod demanded to share profit in the ratio of their capital contribution, Chandra is not
in agreement with this proposal.
D. Binod, being a working partner, demands a lump sum payment of Rs. 40,000 as remuneration
for which other partners are not in agreement.

9. A, B and C are partners with Fixed Capital of Rs. 1,00,000 Rs. 2,00,000 and Rs. 3,00,000
respectively. Their partnership deed provides that:
(a) A is to be allowed a monthly salary of ₹600 and B is to be allowed a monthly salary of ₹ 400.
(b) C will be allowed a commission of 5% of the net profit after allowing salaries of A and B.
(c) Interest is to be allowed on Capital @ 6%.
(d) Interest will be charged on partner's annual drawings at 4%.
(e) The annual drawings were: B Rs. 10,000 and C Rs. 15,000.
The net profit for the year ending 31st March, 2021 amounted to Rs. 1,72,000. Prepare Profit and
Loss Appropriation Account.

10. A, B and C were partners. Their capitals were A - Rs.30,000; B – Rs.20,000 and C – Rs.10,000
respectively. According to the Partnership Deed, they were entitled to an interest on capital @5%
p.a. In addition, B was also entitled to draw a salary of Rs.500 per month. C was entitled to a
commission of 5% on the profits after charging the interest on capital, but before charging the salary
payable to B. The net profits for the year were Rs.30,000 distributed in the ratio of capitals without
providing for any of the above adjustments. The profits were to be shared in the ratio of 5: 3: 2. Pass
necessary adjustment entry showing the workings clearly.

ACTIVITY 2: Specific Project – 1 (CBSE)

First specific project based on financial statement analysis of a company covering any one
aspects from the following:
1. Comparative and common size financial statements
OR
2. Accounting Ratios
 JODHAMAL PUBLIC SCHOOL, JAMMU
WEEK – 2

ACTIVITY 1: Worksheet on Ch 4 (Admission of a Partner)

1. Share of goodwill brought by new partner in case is shared by old partners in :

(a) Sacrificing Ratio (b) Old Ratio (c) New Ratio (d) Equal Ratio

2. A and B are partners in a firm sharing profits in the ratio of 3:2. They admit C as a new partner for
1/3rd share in the profits of the firm. The new profit sharing ratio of A, B and C would be:
(a) 3 : 2 : 1 (b) 3 : 2 : 2 (c) 3 : 2 : 3 (d) 6 : 4 : 5

3. A, B and C are partners in a firm. If D is admitted as a new partner, then:

(a) Old firm is dissolved (c) Old Partnership is reconstituted
(b) Old firm and old partnership is dissolved (d) None of these
4. If at the time of admission of new partner, Profit and Loss Account balance appears in the books, it
will the transferred to:
(a) Profit & Loss Appropriation A/c (c) Old Partners‟ Capital A/cs
(b) All Partners‟ Capital A/cs (d) Revaluation A/c

5. E and F were partners in a firm sharing in the ratio of 3:1. They admitted G as a new partner on
1.4.2023 for 1/3rd share. It was decided that E, F and G will share future profits equally. G brought
₹ 50,000 in cash and machinery worth ₹ 70,000 for his share of profit as premium for goodwill. Pass
necessary journal entries.

6. A and B were partners with ₹ 1,00,000 capital each in affirm sharing profits equally. On lst January
they admitted C as a new partner with ¼th share in profits and he brings ₹ 1,00,000 as his share of
capital but unable to bring premium in cash. On the date of C's admission the balance sheet of A and
B showed a general reserve of ₹ 50,000 and a debit balance of ₹20,000 in the Profit and loss
account. Pass necessary journal entries.

7. Seeta and Geeta shared profits in the ratio of 3:2. Rita was admitted with 1/5th share. It was agreed
that Seeta and Geeta will share future profits in the ratio of 2: 1. Calculate the new ratio and the
sacrificing ratio.

8. A and B were partners in the profit-sharing ratio of 3:2. Their balance sheet as at March 31, 2022
was as follows:

Liabilities ₹ Assets ₹
Creditor 60,000 Land & Buildings 2,00,000
General reserve 20,000 Stock 80,000
Capital Debtor 50,000
A 2,20,000 -provision 2,000 48,000
B 1,80,000 4,00,000 Machinery 1,00,000
Cash 52,000
4,80,000 4,80,000
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C was admitted for 1/5th share on the following terms:
a. C will bring Rs. 60,000 as his share of capital, and Rs 2,000 for his share of goodwill.
b. Land & Building was to increase by Rs 20,000
c. Plant and Machinery were to be decreased by 10%
d. A provision for doubtful debts to be made at 10 % on debtors.
e. Capitals of A and B will be adjusted on the basis of C‟s share and adjustments will be done by
opening necessary current accounts.
You are required to prepare revaluation account and partners‟ capital account.

9. Vinod and David are partners sharing profits in the ratio 3:2. Their Balance Sheet as on 31st March
2022 was as follows:
Liabilities ₹ Assets ₹
Capitals
Vinod 5,00,000 Office Equipment 30,000
David 8,00,000 Land & building 5,00,000
Creditors 1,80,000 Plant and machinery 3,50,000
Bills payable 1,20,000 Debtors 2,00,000
Bank loan 1,00,000 Stock 1,20,000
General reserve 50,000 Cash in Hand 50,000
12,50,000 12,50,000
Madan was admitted as a partner on 1st April 2019 for 1/6th share and the following was agreed
a. Madan will bring Rs.20,000 as premium for goodwill and Rs.2,50,000 as his capital.
b. Assets are revalued as Debtors 10% less; Stock 10% more and plant and machinery is to be
appreciated by Rs.20,000.
c. Creditors were undervalued by Rs.20,000.
d. Vinod and David will adjust their capitals on the basis of Madan‟s capital and adjustment [if
any] will be made in cash.
Prepare the Revaluation Account, Partners Capital Account.

10. On 31.03.2023, the Balance Sheet of Abhir and Divya, who were sharing profits in the ratio of 3:1
was as follows. Balance Sheet of Abhir and Divya as on 31.03.2023
Liabilities ₹ Asset ₹
Creditors 2,20,000 Cash at Bank 1,40,000
Employees Provident Fund 1,00,000 Debtors 6,50,000
Investment Fluctuation Fund 1,00,000 Less: Provision (50,000) 6,00,000
General Reserve 1,20,000 Stock 3,00,000
Capitals: Investments
Abhir 6,00,000 (Market Value ₹4,40,000) 5,00,000
Divya 4,00,000 10,00,000
15,40,000 15,40,000
They decided to admit Vibhor on 01.04.2023 for 1/5th share
a. Vibhor shall bring Rs 80,000 as his share of goodwill premium.
b. Stock was overvalued by Rs 20,000
c. A debtor, whose dues of Rs 5,000 were written off as bad debt, paid Rs 4,000 as full
settlement.
d. Two month‟s salary @ Rs 6,000 per month was outstanding.
 JODHAMAL PUBLIC SCHOOL, JAMMU
e. Vibhor was to bring Capital to the extent of 1/5th of the total capital of the new firm.
Prepare Revaluation a/c, Partner‟s Capital a/c of the reconstituted firm.

ACTIVITY 2: Art Integrated Activity

Use of various media - ppt, chart, scrap files etc. (ANY ONE)
a) Chart showing types of Accounts with as many examples as the students can write.
b) Power point Presentation of Factors Affecting Goodwill
c) Chart showing the Treatment of Goodwill on Admission of new partner

WEEK – 3

ACTIVITY 1: Worksheet on Ch 5 (Retirement of a Partner)

1. If three partners A, B, C are sharing profit as 5:3:2, then on the death of a partner A, how much B
and C will pay to A executor on account of goodwill. Goodwill is to be calculated on the basic of 2
years purchase of last 3 years average profit, profits for the last 3 years are Rs. 3,28,000 Rs. 3,46,000
and Rs. 4,00,000.
(A) Rs. 3,16,000 and Rs. 1,42,000 (C) Rs. 4,29,600 and Rs. 2,86,400
(B) Rs. 2,44,000 and Rs. 2,16,000 (D) Rs. 2,16,000and Rs. 1,44,000

2. A, B and C are partners in a firm sharing profit and losses in 3:4:2 B retire from the firm. The profit
on revaluation on that date was Rs. 72,000, New ratio between A and C is 5:3 Profit on revaluation
will be distributed as:
(A) A Rs. 32,000 B Rs. 24,000 C Rs. 16,000 (C) A Rs. 45,000 C Rs. 27,000
(B) A Rs. 24,000 B Rs. 32,000 C Rs. 16,000 (D) A Rs. 47,250 C Rs. 24,750

3. Retiring or outgoing partner

(A) Is liable for firm liabilities
(B) Not liable for any liabilities of the firm
(C) Is liable for obligation incurred before his retirement
(D) Is liable for obligation incurred before and after his retirement

4. What treatment is made of accumulated profits and losses on the retirement of a partner?
A) Credited to all partner‟s capital account in old ratio.
B) Debited to all partner‟s capital account in old ratio.
C) Credited to remaining partner‟s capital account in new ratio.
D) Credited to remaining partner‟s capital account in gaining ratio.

5. A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the
firm is valued at ₹ 60,000 and the remaining partners A and C continue to share profits in the ratio of
3:1. Pass the journal entries if goodwill is raised to the extent of retiring partner's share and written-
off immediately.

6. X, Y and Z are partners sharing profit and loss in the ratio of 4 : 3 : 2. Y retires and the goodwill is
 JODHAMAL PUBLIC SCHOOL, JAMMU
valued at ₹ 72,000. Calculate Y‟s share of goodwill and pass necessary journal entry for the same
without opening the goodwill account. X and Z decide to share the future profit and loss in the ratio
of 5 : 3.

7. Arjun, Bhim and Nakul are partners sharing profit and loss in the ratio of 14 : 5 : 6 respectively.
Bhim retires and surrenders his 5/25th share in favour of Arjun. The goodwill of the firm is valued at
2 years' purchase of super profit based on average profit of last 3 years. The profit of the last three
years are 50,000, 55,000 and 60,000 respectively. The normal profit of the similar firms are 30,000.
Goodwill already appears in the books of the firm at 75,000. The profit for the first year after the
Bhim's retirement was ₹ 1,00,000. Give necessary journal entries to adjust goodwill and distribute
profit and showing your workings clearly.

8. Balance sheet of P, Q and R sharing profit and loss in the ratio of 5 : 3 : 2 as at 31st March, 2023 is
as under:
Liabilities ₹ Asset ₹
Creditors 15,000 Cash at Bank 27,000
Capitals: Debtors 16,000
P 46,000 Less: Provision __(800) 15,200
Q 34,000 Stock 12,800
R 25,000 1,05,000 Plant & Machinery 35,000
Land & Building 30,000
1,20,000 1,20,000
Q retires from the firm on 1st April, 2023. P and R decided to share future profit and loss in the ratio
of 3 : 1 respectively. Following adjustments are agreed.
a. An amount of 1,100 included in sundry debtors be written-off as it is no longer receivable.
b. A provision for doubtful debts be maintained at 5%
c. Stock be written down by ₹ 1,055.
d. Land and building be written up by ₹ 11,000.
e. Plant and machinery be reduced to ₹ 34,000.
f. An amount of ₹ 700 included in sundry creditors be written back as no longer payable.
g. A provision of ₹ 600 be made for an outstanding repair bill.
h. An Old computer previously written-off was for ₹ 2,000 as scrap.
To give effect to the above adjustments, you are required to prepare the revaluation account.

9. X, Y and Z are partners sharing profit & loss in the ratio of 5 : 3 : 2. Their balance sheet as at 31st
March, 2023 was as follows:
Balance Sheet
As at 31st March, 2023
Liabilities ₹ Asset ₹
Creditors 2,50,000 Building 6,00,000
Expenses payable 50,000 Machinery 7,00,000
Capitals: Stock 2,56,000
X 9,20,000 Debtors 3,20,000
Y 6,80,000 Less: Provision (16,000) 3,04,000
Z 5,00,000 21,00,000 Cash in Hand 55,000
Cash at Bank 4,85,000
24,00,000 24,00,000
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On that day, Y retires from the firm and X and Z to share future profit and loss in the ratio of 3:2
respectively. Following adjustments are agreed.
a. An amount of ₹ 22,000 included in sundry debtors be written-off, being not recoverable
b. Provision for doubtful debts be maintained at 5%
c. Stock is valued at ₹ 2,35,000.
d. Land and building are valued at ₹ 8,20,000 and plant and machinery at ₹ 6,80,000.
e. Sundry creditors be reduced by ₹ 14,000 being a liability not payable.
X and Z also decided that assets and liabilities shall continue to be shown at their existing value.
Prepare revaluation account.

10. X, Y and Z were in partnership sharing profits in proportion to their capitals. Their balance sheet on
31st March, 2023 was as follows:
Balance Sheet
As at 31st March, 2023
Liabilities ₹ Asset ₹
Creditors 1,56,000 Cash at Bank 1,60,000
General Reserve 60,000 Debtors 2,00,000
Capitals: Less: Provision _(4,000) 1,96,000
X 9,00,000 Stock 1,80,000
Y 6,00,000 Machinery 4,80,000
Z 3,00,000 18,00,000 Building 10,00,000
20,16,000 20,16,000

On the above date, Y retired owing to ill health and the following adjustments were agreed upon.
a. Buildings to be appreciated by 10%.
b. Provision for doubtful debts to be increased to 5% of debtors.
c. Machinery to be depreciated by 15%.
d. A provision to be made for outstanding repairs bill of ₹ 30,000.
e. Included in the value of creditors is ₹ 18,000 for an outstanding legal claim, which is not
likely to arise.
f. Out of the insurance premium paid ₹ 20,000 is for the next year. The amount was debited to
profit and loss account.
Prepare the revaluation account.

ACTIVITY 2: Specific Project – 2 (CBSE)

Second specific project based on financial statement analysis of a company covering CASH
FLOW STATEMENT aspects from the above specific project.
 JODHAMAL PUBLIC SCHOOL, JAMMU

WEEK – 4

ACTIVITY 1: Worksheet on Ch 6 (Death of a Partner)

1. As per section 37 to the Indian Partnership Act, 1932, the executors would be entitled at their choice
to interest calculated from the date of death till the date of payment on the final amount due to the
deceased partner at _______ % p.a.
a. 7 b. 4 c. 6 d. 8

2. A, B and C are partners sharing profits and losses in the ratio of 3:2:1. On 1.6.2023 C died. The
average profits of the firm for last four years were ₹72,000. Books are closed on 31st March. C‟s
share of profit till the date of his death will be:
a. ₹ 2,000 b. ₹ 12,000 c. ₹ 1,400 d. ₹ 24,000

3. If three partners A, B & C are sharing profits as 5:3:2, then on the death of a partner A, how much B
will pay to A‟s executor on account of goodwill? Goodwill is to be calculated on the basis of 2 years
purchase of last 3 years average profits. Profits for the last three years are ₹ 10,80,000:
a. ₹ 2,16,000 b. ₹ 2,44,000 c. ₹ 3,60,000 d. ₹ 1,44,000

4. A, B and C are equal partners in a firm. B retires and the remaining partners decide to share profit of
the new firm in the ratio of 5 : 4. Gaining ratio will be:
a. 2 : 1 b. 1 : 2 c. 4 : 5 d. 5 : 4

5. P, Q and R were partners in a firm. R died on 28th February, 2023. His share of profits from the
closure of the last accounting year till the date of death was to be calculated on the basis of the
average profits of three completed years before death. Profits for 2020, 2021 and 2022 were ₹
80,000, ₹ 90,000 and ₹ 1,00,000 respectively. calculate R's share of profits till his death.

6. P, Q and R were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2 Q died on 31st
May, 2023. His share of profit from the closure of the last accounting year till the date of death, was
to be calculated on the basis of the average of three completed years of profits before death. Profits
for the years ended 31st March, 2020, 2021 and 2022 were ₹ 17,000, ₹ 15,000 and ₹ 13,000
respectively. Calculate share of profit till his death and pass the necessary Journal entry for the
same.

7. Sita, Rita and Gita are partners in a firm sharing profits and losses in the ratio of 4 : 3 : 1. As per the
terms of partnership deed, on the death of any partner. goodwill was to be valued at 50% of the net
profits credited to that partners capital account during last three completed years before her death.
Sita died on 28th February, 2023. The profits for the last five years were:
2018-₹ 60,000, 2019-₹ 97,000, 2020-₹ 1,05,000, 2021-₹ 30,000 and 2022-₹ 84,000
On the date of Sita's death, building was found undervalued by ₹ 80,000 which was to be
considered. Calculate amount of Sita's share of in the firm and record the adjustment journal entries
of goodwill and revaluation of building. The new profit-sharing ratio between Rita and Gita will be
equal.

8. The balance sheet of A, B and C, who were sharing profits in the ratio of 3 : 3 : 4 respectively, as at
 JODHAMAL PUBLIC SCHOOL, JAMMU
31st March, 2023 was as follows:
Liabilities ₹ Asset ₹
General Reserve 5,000 Cash 16,000
Bills payable 10,000 Stock 44,000
Loan 12,000 Investment 47,000
Capitals: Land & Building 60,000
A 60,000 A‟s Loan 10,000
B 50,000
C 40,000 1,50,000
1,77,000 1,77,000
A died on 31st July, 2023. The partnership deed provided for following on the death of a partner.
a. Goodwill of the firm be valued at two years' purchase average profits for the last three years
which were ₹ 40,000.
b. A's share of profit till the date of his death was to be calculated on the basis of sales. Sales for
the year ended 31st March, 2023 amounted to ₹ 4,00,000 and that from 1st April to 31st July,
2023 ₹ 1,50,000. The profit for the year ended 31st March, 2023 was ₹ 1,00,000.
c. Interest on capital to be provided @ 6% per annum.
Prepare Ns capital account to rendered to his executor.

9. Arun, Varun and Karan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 31st
March, 2023 their balance sheet was as follows:
Balance Sheet
As at 31st March, 2023
Liabilities ₹ Asset ₹
Creditors 17,000 Cash 8,000
Bills payable 12,000 Debtors 13,000
Karan‟s Loan 28,000 Bills receivables 9,000
Capitals: Furniture 27,000
Arun 70,000 Machinery 1,25,000
Varun 68,000 1,38,000 Karan‟s Capital 13,000
1,95,000 1,95,000
On 30th Sep, 2023, Karan died. The partnership deed provided the following to the executors of the
deceased partner.
⮚ His share in the goodwill of the firm on basis three years' purchase of the average profits of the
last four years. The profits of the last four years ₹ 1,90,000, ₹ 1,70,000, ₹ 1,80,000 and ₹
1,60,000 respectively.
⮚ His share in the profits of the firm tin the date of his death calculated on the basis of the
average profits of the last four years.
⮚ Interest @ 8% p.a. the credit balance, if any, in his capital account.
⮚ Interest on his loan @ 12% p.a.
Prepare Karan's capital account to be presented to his executors, assuming that his loan and interest
on loan were transferred to his capital account.

10. Meera, Sarthak and Rohit were partners sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2023
their balance sheet was as follows:
Balance Sheet
As at 31st March, 2023
 JODHAMAL PUBLIC SCHOOL, JAMMU
Liabilities ₹ Asset ₹
Creditors 3,00,000 Fixed Assets 7,00,000
Contingency Reserve 1,00,000 Stock 2,00,000
Capitals: Debtors 1,50,000
Meera Cash at Bank 3,50,000
4,00,000
Sarthak 10,00,000
3,50,000
Rohit 2,50,000
14,00,000 14,00,000
Sarthak died on 1st June, 2023. According to the partnership deed, his executors were entitled to
a. Balance in his capital account
b. His share of goodwill will be calculated on the basis of thrice the average of the past 4 years
c. His share in profits up to the date of death on the basis of average profits of the last 2 years
d. Interest on capital 12% p.a. up to the date of his death.
The firm's profits for the last four years were: 2019-20 ₹ 1,20,000, 2020-21 ₹ 4,00,000,
2021-22 ₹ 4,60,000 and 2022-23 ₹ 2,20,000.
Sarthak‟s executors were paid the amount due immediately. Prepare Sarthak‟s Capital Account to be
presented to his executors.

ACTIVITY 2: Worksheet on Ch 7 (Dissolution of Partnership Firms)

1. At the dime of firm's dissolution, Balance of General Reserve shown in the Balance Sheet is credited
to :
a. Realisation A/c c. Partners Capital Accounts
b. Creditors A/c d. Profit & Loss Account

2. On dissolution of a firm, a partner paid Rs. 1,500 for firm‟s realisation expenses. Which account will
be debited?
a. Cash Account c. Capital Account of the partner
b. Realisation Account d. Profit & Loss A/c

3. Which of the following is transferred to Realisation Account?

a. Balance of Profit Account c. Amount realised on Sale of assets
b. Balance of Profit & Loss Account d. Reserves

4. On dissolution, Goodwill Account is transferred to:

a. In the capital Account of Partners c. On the debit side of realisation account
b. On the Debit side of Realisation Account d. On the credit side of realisation account

5. Record journal entries in the following cases:

a) Creditors worth Rs 85,000 accepted Rs 40,000 as cash and investment worth Rs 43,000 in full
settlement of their claim.
b) Creditors were worth Rs 16,000. They accepted machinery valued at Rs 18,000 in settlement of
their claim.
c) Creditors worth Rs 90,000. They accepted buildings valued at Rs 1,20,000 and paid cash to the
 JODHAMAL PUBLIC SCHOOL, JAMMU
firm Rs 30,000.

6. Record journal entries in the following cases:

a) Rohit one of the partners was to receive 2% of the value of assets realised as remuneration for
completing the dissolution work and was to bear realisation expenses. Realisation expenses ₹
4,000 paid by Rohit. The assets (including cash at bank 12.000) realised ₹ 6,12,000.
b) Rohit one of the partners was to receive 2% of the net cash realised from dissolution and was to
bear realisation expenses. Realisation expenses were ₹ 4,000. The assets (including cash at bank
₹ 12,000) realised ₹ 6,12,000 and cash paid for outsiders' liabilities amounted to ₹ 1,60,000.
c) Realisation expenses of ₹ 2,000 were to be borne by Raju. a partner. However, it was paid Sanju.

7. Pass the necessary journal entries for the following transactions on the dissolution of the firm of
Sudha and Shiva after the various assets (other than cash) and outside liabilities have been
transferred to realisation account.
a) Sudha agreed to pay off her husband's loan ₹ 19,000.
b) A debtor whose debt of ₹ 9,000 was written-off in the books. paid ₹ 7,500 in full settlement.
c) Shiva took over all investments at ₹13,300.
d) Sundry creditors ₹ 10,000 were paid at 9% discount.
e) Realisation expenses ₹ 3,400 were paid by Sudha for which she was allowed ₹ 3,000.
f) Loss on realisation ₹ 9,400 was divided between Sudha and Shiva in 3 : 2 ratio.

8. R & A were partners in a firm sharing profits in the ratio of 4:1. On 31 st Mar, 2023, their balance
sheet was as follows:
Liabilities ₹ Asset ₹
Creditors 90,000 Bank 1,10,000
Workmen compensation fund 80,000 Debtors 1,20,000
A‟s current A/c 1,30,000 Stock 1,70,000
Capitals: Furniture 2,00,000
R 4,00,000 Machinery 2,60,000
A 2,00,000 6,00,000 R‟s Current A/c 40,000
9,00,000 9,00,000
On the above date, the firm was dissolved.
a) Rishi took over 40% of the stock at 10% less than its book value and the remaining stock was
sold for ₹ 80,000. Furniture realised ₹ 1,60,000
b) An unrecorded investment was sold for ₹ 40,000. Machinery was sold at a loss of ₹ 1,20,000
c) Debtors realised ₹ 1,10,000
d) There was an outstanding bill for repairs for which 38,000 was paid.
Prepare realisation account.

9. What journal entries will be passed in the books of Dholu and Bholu sharing profits and losses in
the ratio of 3 : 1, for the following transactions on dissolution of the firm?
a) An unrecorded asset realised ₹ 50,000
b) Stock worth ₹ 40,000 was taken by partner Dholu.
c) Creditors were paid ₹ 60,000.
d) Bholu has to bear realisation expenses for which he will get ₹ 3,800. The actual expenses paid
by Bholu were ₹ 3,000.
 JODHAMAL PUBLIC SCHOOL, JAMMU
e) There was a balance of ₹ 20,000 in the general reserve account on the date of dissolution.
f) Gain (Profit) on realisation of ₹ 80,000 is to be distributed between partners Dholu and Bholu in
the ratio of 3 : 1.

10. Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st March,
2023, their balance sheet was as follows:
Liabilities ₹ Asset ₹
Creditors 1,50,000 Bank 2,00,000
Workmen compensation fund 3,00,000 Debtors 3,40,000
General Reserve 75,000 Stock 1,50,000
Hanif‟s Current A/c 25,000 Furniture 4,60,000
Capitals: Machinery 8,20,000
Hanif Jubed‟s Current A/c 80,000
10,00,000 15,00,000
Jubed
5,00,000
20,50,000 20,50,000
On the above date, the firm was dissolved.
a) Debtors were realised at a discount of the stock was taken over by Hanif at 10% less than the
book value. Remaining Stock was sold ₹ 65,000.
b) Furniture was taken over by Jubed for ₹ 1,35,000. Machinery was sold as scrap for ₹ 74,000.
c) Creditors were paid in full.
d) Expenses on realisation ₹ 8,000 were paid by Hanif. Prepare realisation account.

JODHAMAL PUBLIC SCHOOL

HOLIDAYS HOME-WORK
CLASS: XII SUB: BUSINESS STUDIES
WEEK – 1

ACTIVITY 1: Worksheet on Ch 4 (Planning)

1. Which of the following statements is not true with reference to planning?

(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the organisation.

2. Which of the following is not a feature of planning?

(a) Planning is futuristic. (b) Planning is pervasive.
(c) Planning establishes standards for controlling. (d) Planning focuses on achieving objectives.

3. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify
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the related limitation of planning.
(a) Planning leads to rigidity. (b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success. (d) Planning reduces creativity.

4. Identify the correct sequence of steps involved in the planning process.

(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives,
Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses,
Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating
alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating
alternative courses

5. After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at Goa Airport to
provide a healthy food option to the travellers. To begin with, she has decided to sell five types of
patties, three type of pizzas and low sugar muffins in four flavours. Thus, by dividing in advance
what to do and how to do, she is able to reduce the risk of uncertainty and avoid overlapping and
wasteful activities. But sometimes her planning does not work due to some unavoidable
circumstances like cancellation of flights due to bad weather conditions, government alert etc. which
adversely affects her clientele.
In context of the above case:
a) Identify & explain the points highlighting the importance of planning mentioned in the above
paragraph.
b) Describe briefly the limitation of planning which adversely affects Payal‟s business.

6. ABC Ltd. has a plan of increasing profits by 20%. It has devoted a lot of time and money to this
plan. But the competition starts increasing, so it could not change its plan to b eat its competitors
because huge amount of money had already been devoted to the pre-decided plan. It caused losses
to the company.
Explain any two limitations of planning highlighted in the above case. Also, quote the lines from it.

7. In „Chak De India‟ movie, Shahrukh Khan becomes the coach of the girls‟ hockey team. He knows
that he has to prepare the girls for the international hockey matches and bring the world cup after
winning. For this he prepares a long-team plan and thinks the ways how to bet the competitors. He
coaches the girls to play in different ways like defensive, offensive, etc. at the outset of a match he
explains who will open the match, and how the ball will be passed by one player to another step by
step.
Identify four types of plan that are highlighted in the above case, quoting the lines from it.

8. An electronic company is facing a problem of declining market share due to increased competition
from other new and existing players in the market. Its competitors are introducing lower price
models for mass consumers who are price sensitive. For quality conscious consumers, company is
introducing new model LED TV and DVD players with added features and new technological
advancements. For this, the company raises extra funds Rs. 5 crore form banks.
Name the type of plan the company is preparing. State the steps which the company follows to
implement this plan quoting the line from the above para.

9. Zyesha Ltd. is a company which manufactures leather bags. The CEO of the company wants to
 JODHAMAL PUBLIC SCHOOL, JAMMU
increase their sales and earn more profits. The consulted with a management consultant who
suggested the top management of the company tow rok hard in thinking about the future in making
business prediction and achieve the targets since the business environment keeps on changing
whether in terms of technological improvement, shifts in consumer preferences or entry of new
competitors in the market.
A) Identify and state the concept of management discussed in the para.
B) State the characteristic feature of business environment highlighted in the above para.

10. Suhasini a home science graduate from a reputed college has recently done a cookery course. She
wished to start her own venture with a goal to provide „health food‟ at reasonable price. She
discussed her idea with her teacher (|mentor) who encouraged her. After analyzing various options
for starting her business venture, they shortlisted the option to sell ready made and „ready to make‟
vegetable shakes & sattu milk shakes. Then they both weighed the pros and cons of both the
shortlisted options.
a) Name the function of management being discussed above and give any one of its
characteristics.
b) Also briefly discuss any three limitations the function discussed in the case.

ACTIVITY 2: Project CBSE

Taking from the fortune 500 companies, you are required to prepare one project file from the
following topics:
 Roll No. 1 to 6: Elements of Business Environment
 Roll No. 7 to 12: Principles of Management
 Roll No. 13 to 18: Stock Market
 Roll No. 19 to 24: Marketing
 Roll No. 25 to 30: Consumer Protection

WEEK – 2

ACTIVITY 1: Worksheet on Ch 5 (Organising)

1. Identify the type of organisational structure which facilitates occupational specialisation,

(a) Functional structure (b) Horizontal structure (c) Network structure (d) Divisional structure

2. This type of organisational structure is most suitable when the size of the organisation is large, has
diversified activities and operations require a high degree of specialisation,
(a) Divisional structure (b) Functional structure (c) Network structure (d) Matrix structure

3. Under this type of organisational structure, manpower is grouped on the basis of different products
manufactured.
(a) Divisional structure (b) Functional structure (c) Network structure (d) Matrix structure
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4. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the
work has been divided into small and manageable activities and also the activities of similar nature
are grouped together. Identify the related step in organising process being mentioned in the above
lines.
(a) Identification and division of work (b) Departmentalisation
(c) Assignment of duties (d) Establishing reporting relationships

5. Tanushree runs a factory wherein she manufacturers shoes. The business has been doing well & she
intends to expand by diversifying into leather bags as well as western formal wear, thereby making
her company a complete provider of corporate wear. This will enable her to market her business
unit as the one shop for working women. Which type of structure would you recommend for the
expanded organization & why? State any four advantages of this Structure.

6. Sudhir is working as a purchase manager in a power sector company. All his subordinates hold him
in high regard for his exceptional managerial skills. On one hand, as a manager, he is a tough task
master and expects strict compliance to the organizational rules and procedures from his
subordinates. On the other hand, he makes conscious efforts to develop rapport with his
subordinates by interacting freely with them during the lunch breaks I the cafeteria. Many a times
these chit chats helps him to get an insight into the views and opinions of his team members about
the policies of the organization.
In the context of the case:
1.Identify and explain the two types of organizations have been discussed.
2.State any three differences between the types of organizations as identified in part (a) of the
question.

7. A company manufacturing consumer goods has grown in size. It was a market leader but with
changes in economic environment and with the entry of MNCs its market share is declining. The
company was following a centralized business model as even the minor decisions were in the hands
of top level. Before 1991 this model was suitable for company but now the company is under
pressure to reform.
What changes should the company bring about in order to retain its market share? Give its three
points of importance.

8. Kiran Industries is a company manufacturing office furniture. The company chose to diversify its
operations to improve its growth potential and increase market share. As the project was important
many alternatives were generated for the purpose and were thoroughly discussed amongst the
members of the organization. After evaluating the various alternatives Sukhvinder, the Managing
Director of the company decided that they should add „Home Interiors and Furnishings‟ as a new
line of business activity.
1. Name the framework, which the diversified organization should adopt, to enable it to cope with
the emerging complexity? Give one reason in support of your answer.
2. State any two limitations of this framework.

9. A company is manufacturing washing machines. There is a well-defined system of jobs with a clear
and definite authority, responsibility and accountability in the company. But people are not allowed
to interact beyond their officially defined roles. As a result, the company is not able to adapt to the
changing business environment. The workforce is also not motivated due to lack of social
interaction. The company is facing problems of procedural delays and inadequate recognition of
creative talents.
1. Suggest how the organization can overcome the problems faced by it.
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2. Give any two benefits it will derive from your suggestions.

10. Atul joins as a Regional Sales Head in the export division of a FMCG (fast moving consumer goods)
company. In a departmental meeting, he asks one of this subordinates, Manik, to take charge of the
company‟s new office in Dubai. He allocates the work to him and grants the necessary authority.
However, within a month by seeking regular feedback on the extent of work accomplished for
Manik, Atul realizes that Manik is not doing the work as per his expectations. So he takes away the
authority delegated to him and re delegates the work to Prakrit. Due to the time wasted in this
switch over, the work at the Dubai office suffers tremendously and the company is not able to meet
its desired goals.
In context of the above case:
1) Why is Manik supposed to give regular feedback about work to Atul?
2) Can the authority granted to a subordinate be taken back and re-delegated to another person?
3) Can Manik be held responsible for not meeting the work related expectations of Atul? Give a
suitable reason in support of your answer.
4) Differentiate between authority, responsibility and accountability on the basis of origin and flow.

ACTIVITY 2: Project CBSE

Taking from the fortune 500 companies, you are required to prepare one project file from the
following topics:
 Roll No. 1 to 6: Elements of Business Environment
 Roll No. 7 to 12: Principles of Management
 Roll No. 13 to 18: Stock Market
 Roll No. 19 to 24: Marketing
 Roll No. 25 to 30: Consumer Protection

WEEK – 3

ACTIVITY 1: Worksheet on Ch 6 (Staffing)

1. Under this method of recruitment, a notice is placed on the notice board of the organisation
containing the details of the jobs available.
(a) Casual callers (b) Labour contractors (c) Recommendations of employees
(d) None of the above

2. Which of the following is not a disadvantage of using external sources of recruitment?

(a) Dissatisfaction among existing staff (b) Lengthy process
(c) The scope for induction of fresh talent is reduced (d) Costly process

3. This analysis would enable an assessment of the number and types of human resources necessary for
the performance of various jobs and accomplishment of organisational objectives.
(a) Breakeven analysis (b) Workload analysis (c) Workforce analysis (d) All of the above
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4. It is suitable for filling casual vacancies when work load is high or when certain number of
permanent workers are absent.
(a) Direct recruitment (b) Labour contractors (c) Advertising on television
(d) Placement agencies and management consultants

5. In a company all recruiting, screening and training process for data entry, etc. are done by one
officer only. Their competitor was attracting most qualified employees. As a result this company
had to choose from candidates who have soft skills and less qualifications. On the basis of above
case answer the following questions:
(i) What problem do you see company is facing?
(ii) How can this problem m be solved?

6. Ms. Neeta recently completed her Post-Graduate Diploma in Human Resource Management. A few
months from now a large steel manufacturing company appointed her as its Human Resource
Manager. As of now, the company employs 800 persons and has an expansion plan in hand which
may require another 200 persons for various types of additional requirements. Ms. Neeta has been
given complete charge of the company‟s Human Resource Department.
(a) State any two functions she must be performing.
(b) What problems do you foresee in her job? What steps is she going to take to perform her job
efficiently?

7. Anuroop runs a law firm in Hyderabad. His firm offers valuable financial and legal consultancy
services to the clients. Whenever the firm hires any new employees, on the first day of their joining,
they are welcomed to the organization and are given details about hours of work, holiday requests,
sickness procedure, dress code, lunch arrangements, introduced to the daily operations and key
people in the workplace, etc. They are also familiarized with the organistion‟s policies and
procedures, including complaints and dispute resolution, sexual harassment, emergency exits and
evacuation procedure.
In the context of the above case:
1) Name the type of training which is being referred to in the above lines.
2) Identify and explain the human needs of the new employees that the being fulfilled by
Anuroop through this training.

8. Srija runs an NGO under the name „Sarthak‟ in Delhi. The organization is engaged in offering
waste paper recycling services to all kinds of institutions in the Delhi NCR region. It also
manufactures custom made paper stationery out of recycled paper on order for the interested
institutions at a very competitive price. The website of „Sarthak‟ provides a link to a Careers site
where in the people desirous of joining the NGO can use simple Job Search to find the right
opportunity for themselves. The NGO also keeps a database of unsolicited applicants in its office so
that job seekers may be notified of future opportunities when they arise.
In context of the above case:
1) Identify the two sources of external recruitment being used by the NGO „Sarthak‟ by quoting
lines from the paragraph.
2) List any two values that Srija wants to communicate to the Society.

9. Prateek has started an advertising agency in Gurgoan. One of the page on his company‟s website
contains the following information, “Welcome to all the visitors of this page who are looking for an
opportunity to make a career in the field of advertising. The openings are available in the company
at various levels, so don‟t miss the chance.” This page includes a link to provide further details
 JODHAMAL PUBLIC SCHOOL, JAMMU
about the vacancies available in terms of the desired qualifications, experience, personality
characteristics and so on. Through a continuous assessment of the number and types of human
resources necessary for the performance of various jobs and accomplishment of organizational
objectives and in relation to the number and type available, he gets the information on this page
updated.
In context of the above case:
1) Identify and explain the steps in the staffing process being carried out by Prateek by quoting
lines from the paragraph.
2) Name the concept that relates to the details about the vacancies available in terms of the
desired qualifications, experience, personality characteristics and so on.

10. A company x Ltd. is setting up a new plant in India for manufacturing auto components. India has
highly competitive and cost-effective production base in this sector. X Ltd. is planning to capture
about 40% of the market share in India and also export to the tune of at least $5 million in about 2
years of its planned operations. To achieve these targets, it requires a highly trained and motivated
workforce. You have been retained by the company to advise it in this matter.
1) which sources of recruitment the company should rely upon?
2) Which methods of training should company initiate?

ACTIVITY 2: Worksheet on Ch 3 (Business Environment)

1. The growing awareness about healthcare has led to an increase in the demand for healthcare
products and services in the country. Identify the feature of business environment being described in
the above case.
(a) Dynamic nature (b) Uncertainty (c) Relativity (d) Interrelatedness

2. „Twinkle Stars‟ is a well-known resort for organising parties, especially for children. However, in
past 6 months its popularity has reduced considerably as a new resort with better ambience and
facilities has opened within its vicinity. Name the related feature of business environment which has
influenced the business of „Twinkle Stars‟ adversely.
(a) Totality of external forces (b) Dynamic nature (c) Interrelatedness (d) Uncertainty

3. According to the United Nations Environmental Agency, the world produces around 300 million
tons of plastic each year, half of which constitutes single-use items. Ford is recycling over one
billion plastic bottles every year to develop elements of the car‟s interior, reducing the amount of
plastic ending up in a landfill. The American car maker has revealed that their Romanian-built
EcoSport SUVs‟ carpets are made using 470 recycled single-use plastic bottles. The process for
making Ford EcoSport carpets involves shredding bottles and their caps into tiny flakes and then
heating them to 260° C.
Identify the related dimension of business environment.
(a) Economic (b) Social (c) Technological (d) Political
4. In order to boost and double India‟s export of goods and services to over USD 1,000 billion by
2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify
regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension
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5. The court passed an order that all schools must have water purifier for the school children as
1) Society in general is more concerned about quality of life.
2) Innovative techniques are being developed to manufacture water purifier at competitive rates.
3) Incomes are rising and children at home are also drinking purified water.
The government is also showing positive attitude towards the water purifier business.
Identify the different dimensions of business environment by quoting from the above details.

6. Kapil Sharma is working as the Country Head of a company which owns a chain of malls under the
name of „Virtuoso‟ in the various parts of India. Through an analysis report of the business
environment, it has been brought to his notice that in the coming years, shopping at a mall will not
be a necessity for the buyers as purchases can be made online from anywhere and at any time with
ease and at the consumer‟s convenience. Hence, malls will have to provide much more than
shopping to be able to attract customers. So, he recommends that „Virtuoso‟ malls should to be
restructured into recreation centres, offering more spaces to socialize, host events and concerts, and
provide ample Food and Beverages options.
Consequently the share of entertainment segment and Beverages segment in the overall mall space is
increased by 20%. As a result, the company gains enormously by getting the first mover advantage.
In context of the above case:
1) Define the term „Business Environment‟.
2) Explain the terms „Threats‟ and „Opportunities‟ by quoting lines from the paragraph.

7. Nakul, a manager of Zyco Ltd. always takes into account the changes taking place in business
environment while determining plans. He accepts changes readily and gives useful suggestions to
his superior, which results in reduction of costs. As a result, company‟s profits increase. Nakul
enjoys cordial relations with his co-workers and makes plans in consultation with his team to
achieve organizational goals.
1) Which characteristic of management is highlighted in the above lines?
2) Identify and state any two principles of management followed by Zyco Ltd.
3) Give any two benefits which Zyco Ltd. get by taking into account the changes taking place in
business environment, quoting the lines from the above para.
4) State any one value which Nakul wants to communicate to the society.

8. It is interesting to know that the menu items of the multinational food chains are customized to suit
the general palates of the local people in the region. When McDonald‟s started its business in India
in the year 1996, the company went through a complete localization strategy. McDonald‟s changed
its product menu to accommodate the vegetable burger given the large vegetarian population. It also
altered its store design and even reduced the product price by close to fifteen per cent. Also, the
“McAloo Tikki burger” is not available anywhere but in the Indian outlets of McDonalds.
Identify the relevant feature of business environment being discussed above.

9. Eco-friendly products are gaining power as the consumers‟ awareness about environmental issues
has increased over the years and they are conscious about choosing products that do not have
adverse effects on the environment. They are now more conscious about the carbon emission and
climate change effects, and want themselves to be „seen‟ as a green advocate among their peers. In
such a scenario, it has become a challenge for the companies as they have to not only meet the needs
of the consumers but also ensure that their products are safe and environment friendly. At a result,
there is growing need for better and advanced technologies to works as a catalyst in this regard.
1) Identify the relevant feature of business environment being discussed above.
2) Describe briefly any three points which highlight the importance of business environment
 JODHAMAL PUBLIC SCHOOL, JAMMU
and its understanding by managers.

10. Ultra Paint Co. which is manufacturing paints has been enjoying a prominent market position as it
manufactured best quality paints, made timely payment of taxes to government. It assembled various
inputs like finance, machines, raw materials, etc. from its environment. But since last year it has
been dumping its untreated poisonous waste on the river bank which has created many health
problems for the people. As a result, the court passed an order to seal the manufacturing unit of the
company.
1) State the importance of business environment highlighted quoting the line from the above
case.
2) Identify any two dimensions of business environment mentioned in the above case by
quoting lines from it.
3) State any two values which have been overlooked by the company?

WEEK – 4

ACTIVITY 1: Worksheet on Ch 7 (Directing)

1. Which of the following is not a type of semantic barriers?

(a) Badly expressed message (b) Unclarified assumptions
(c) Technical jargon (d) Premature evaluation

2. Identify the level at which the directing function takes place in an organisation?
(a) Top level management (b) Middle level management
(c) Lower level management (d) All of the above

3. It is defined as the process of guiding the efforts of employees and other resources to accomplish the
desired objectives.
(a) Supervision (b) Communication (c) Leadership (d) Inspection

4. Effective motivation in the organisation does not contribute towards

(a) Developing performance levels of employees (b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation (d) All of the above

5. Amit and Mikki are working in the same organization but in different departments. One day at
lunch time Mikki informed Amit that due to computerization some people are going to be retrenched
from the organization.
Name which type of communication is this. State any two limitations of this type of
communication.

6. You are working at the middle level of management. Your superior, a top management personnel,
sent a message for you which you received and well understood. Is the communication process
complete? Give reason.
7. A behavior study was done on total of 100 employees of an organization. Group A (of 50
employees) were appreciated by the manager for their work and initiative for new idea. All these
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employees were given option of flexible working hours and were paid wages at a higher piece rate.
On the other hand, Group B (of remaining 50 employees) was criticized for their poor performance.
Their increments were stopped and they were paid wages at a lower piece rate.
1) Identify and explain the feature of motivation highlighted in the above case.
2) What type of leadership is followed by the manager? Justify your answer.

8. Roma is working in a company on a permanent basis. As per job agreement she had to work for 8
hours a day and was free to work overtime. Huma worked overtime, due to which she fell ill and
had to take leave from her work. No one showed concern and enquired about her health. She
realized that she was fulfilling only some of her needs while some other needs still remained to be
fulfilled.
1) By quoting the lines from the above para, identify the needs of Huma which she is able to fulfil.
2) Also explain two other needs of Huma followed by the above needs, which still remained to be
satisfied.

9. A meeting of all supervisors is scheduled on 20th August, 2023

This notice was placed on the notice board in the reception area of XYZ Ltd. But it did not mention
clear specification regarding the time of meeting. Which barrier of communication is referred to
here? Explain any two other forms of barriers to effective communication under the same category.

10. Mrs. Rajlaxmi is working as the Human Resource Cosultant in a firm manufacturing cosmetic,
which is facing a problem of high employee urnover. The CED of the company has invited
suggestions from her for retaining the talented employees & reducing the employee turnover. Mrs.
Rajlaxmi recommends that the good employees be rewarded in a way that it creates a feeling of
ownership among the employees and at the same time makes them contribute towards the growth of
the organization.
1) Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi to the
CEO of the company.
2) Also explain any two other incentives of the same type.

ACTIVITY 2: Worksheet on Ch 2 (Principles of Management)

1. Which of the following statements is true with reference to principles of management?

(a) The principles of management have evolved.
(b) The principles of management are yet to be evolved.
(c) The principles of management are in the continuous process of evolution.
(d) None of the above.

2. By profession, FW Taylor was a

(a) Mechanical engineer (b) Mining engineer (c) Psychologist (d) Human resource officer

3. Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action.
(b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the above.
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4. The principles of management enhance the understanding of relationship between human and
material resources for the achievement of organisational goals. Identify the feature of the principles
of management being described in the given statement.
(a) Cause and effect relationships (b) Optimum utilisation of resources & effective administration
(c) Formed by practice and experimentation (d) Mainly behavioural

5. Soniya Ltd. was engaged in the business of manufacturing auto components. Lately, its business
was expanding due to increased demand for cars. The competition was also increasing. In order to
keep its market share intact, the company directed its workforce to work overtime. But this resulted
in many problems.
Due to increased pressure of work the efficiency of workers declined. Sometimes, the subordinates
had to work for more than one superiors. The workers were becoming indisciplined. The spirit of
teamwork, which had characterized the company previously, had begun to wane.
Identify any three principles of management (as given by Henry Fayol) which were begin violated,
quoting the lines from the above case.

6. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing. She
has employed eleven persons in her showroom. For greater productivity, she divides the work into
small tasks and each employee is trained to perform his/her specialized job. The sales persons are
allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to
given any further discount rests with Radhika as the final authority. In the earlier days of starting of
the business, five of her employees were asked to put in extra hours of work. In return she had
promised to give them a special incentive within a year. Therefore, after six months when the
business was doing well, she awarded a cash bonus to each of these employees to honour her
commitment. However, when it comes to setting the conflicts among her employees, she tends to b
e more biased towards her female employees.
In context of the above case:
1) Identify and explain the various principles of management that are being applied by Radhika
by quoting lines from the paragraph.
2) Identify and explain the principle of management which is being violated by Radhika by
quoting lines from the paragraph.
3) State any one effect of the violation of the principle of management by Radhika as identified
in part (b) of the question.

7. Neeraj is selected for the post of software developer in an IT Company. On the first day of his
joining Mehul, his project manager tells Neeraj that during the course of his work he will come
across many such opportunities which may temp him to misuse his powers for individual or family‟s
benefit at the cost of larger general interest of the company. In such situations, he should rather
exhibit exemplary behavior as it will raise his stature in the eyes of the company. Also, for
interacting with anyone in the company on official matters, he should adopt the formal chain of
authority and communication.
In context of the above case:
1) Identify and explain the various principles of management that Mehul is advising Neeraj to
follow while doing his job.
2) List any two values that Mehul wants to communicate to Neeraj.

8. „Aapka Vidyalaya‟ believes in holistic development of students and encourages team building
through a mix of curricular, co-curricular and sports activities. On its founders day a stage
performance had to be put up. A committee of ten prefects was constituted to plan different aspect
of the function. They all decided to use recycled paper for decoration. There was a spirit of unit and
 JODHAMAL PUBLIC SCHOOL, JAMMU
harmony and all members supported each other. With mutual trust and belongingness the
programme was systematically planned and executed. Kartik, one of the prefects realized that
unknowingly the group had applied one of the principles of management while planning and
executing the programme. He was so inspired by the success of the function that he asked his father
to apply to same principle in his business. His father replied that he was already using this principle.
1) Identify the principle of management applied for the success of the programme.
2) State any two features of management highlighted in the above para.
3) Identify any two values which „Aapka Vidyalaya‟ communicated to the society.

9. Nikita and Salman completed the MBA and started working in a multinational company at the same
level. Both are working hard and are happy with their employer. Salman had the habit of backbiting
and wrong reporting about his colleagues to impress his boss. All the employees in the organization
knew about it. At the time of performance appraisal the performance of Nikita was judged better
than Salman. Even then their boss, Mohammed Sharif decided to promote Salman stating that being
a female Nikita will not be able to handle the complications of a higher post.
1) Identify and explain the principle of management which was not followed by this
multinational company.
2) Identify the values which are being ignored quoting the liens the above para.

10. Sigma Ltd. is a large company manufacturing electric motors. The company has several
departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set the
target sale of 10 crore in a month. To increase the sales, the marketing manager, Mr. Ishaan insists
on offering 10% discount to customers. But the finance manager, Mr. Mohak does not approve such
discount as it would mean loss of revenue. Because of dual subordination, the sales manager, Mr.
Anshik could not achieve the sales target.
1) Which concept of management Sigman Ltd. is lacking? State it.
2) Which principle of management has been overlooked by this company? State it.
3) Which principle of management has been overlooked by this company? State it.
 JODHAMAL PUBLIC SCHOOL, JAMMU

Worksheet-1
Economics CLASS : XII

1. Define:
Capital goods
Gross investment
Net investment
Depreciation
Capital formation

2. Providing the reason, explain whether the following will be included in the
domestic product of India.
Payment of salaries to its staff by an embassy located in New Delhi.
Profits earned by foreign companies in India.
Salaries of Indian working in the Russian Embassy in India.
Profits earned by a branch of State Bank of India in Japan.

3. Difference between
Leakages and injections
Stock and flow
Factor income and transfer income

4. Classify the following as final goods or intermediate goods:

Clothes purchased by an individual household.
Textbooks purchased by a student
Seeds purchased by a farmer to grow wheat.
Car purchased by a household.
Butter purchased by a household for consumption.
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5. Calculate NDPat FC
Particulars Rs. In crores
Rent 1400
Royalty 200
Interest 1500
Wages and salaries 800
Profit 500
Mixed Income 1000
Depreciation 70
Employer’s contribution to SSS 200

6. Name three methods of National income.

7. Define Barter system. Explain the drawbacks of Barter system.
8. Whether the following changes by the Reserve Bank will increase the money
supply or decrease the money supply?
Rise in CRR
Purchase of securities in the open market
RBI increases the margin from 40% to 60%.
RBI Reduces SLR
Decrease in Bank rate
9. Define High Powered money.
10. Calculate and show the working of money creation by commercial banks if
Primary deposit is Rs. 1250 crore and LRR is 10%.
 JODHAMAL PUBLIC SCHOOL, JAMMU

Worksheet-2
Economics CLASS : XII

1. Explain the quantitative instruments used by Central Bank to control the money
supply.
2. Difference between commercial bank and Central Bank.
3. Calculate sales:
Items Rs. In crores
Net value added at factor cost 400
Intermediate consumption 300
Indirect tax (GST) 20
Depreciation 30
Change in stock (-50)
4. Calculate value of output:
Items Rs. In crores
subsidy 10
Intermediate consumption 1150
Net additions to stock (-)13
Depreciation 80
Indirect tax (GST) 20
Net value added at factor cost 1250

5. From the following data calculate compensation of employees:

Items Rs. In lakhs
Value of output 6000
 JODHAMAL PUBLIC SCHOOL, JAMMU

Intermediate consumption 2000

Consumption of fixed capital 800
Net indirect taxes 700
Profit 500
Operating surplus 1000

6. Giving reasons, classify the following into intermediate and final goods
(i) Machines purchased by a dealer of machines

(ii) A car purchased by a household

7. ‘Machine’ purchased is always a final good. Do you agree? Give reasons for your
answer.
8. What is the significance of the study of circular flow of income?
9. What is leakage? Mention the leakages prevailing in four sector economy.
10. What are injections? Mention the injections prevailing in four sector economy.
 JODHAMAL PUBLIC SCHOOL, JAMMU

Worksheet-3
Economics CLASS : XII

MULTIPLE CHOICE

1. It is a system in which goods are exchanged for goods

a) Barter system b) Trade

c) Money supply d) Balanced of Trade

2. Which of the following is related to Barter system of trade?

a) Store of value b) Double coincidence of wants

c) Standard of differ payments d) Unit of value

3. It refers to the total quantity or stock of money available in the economy at a

point of time
a) Money supply b) Reserves

c) Demand deposits d) Bank deposits

4. Which of the following is true with reference to money supply?

a) Money supply is a flow concept

b) Money supply is a stock concept

c) Money supply also includes the demand deposits of commercial banks

d) Both (b) and (c)

5. Which of the following is included in the money supply?

a) Currency and coins with public

b) Demand deposits of commercial banks

 JODHAMAL PUBLIC SCHOOL, JAMMU

c) Only (a)

d) Both (a) and (b)

6. Which of the following is part of money supply?

i) Deposits of the Indian government with RBI

ii) Saving deposits with post office

a) Only I b) Only II

c) Both (i) and (ii) d) Neither (i) nor (ii)

7. Which of the following is not a component of money supply?

a) Currency and coins with public

b) Demand deposits of commercial banks

c) Net time deposits with Banks

d) National saving certificates

8. These are the payments which are made sometimes in the future
a) Demand deposits b) Different payments

c) Time deposits d) Credit

9. These are those chequable deposits which can be withdrawn or transferred on

demands
a) Demand deposits b) Deferred payments

c) Time deposits d) Credit

 JODHAMAL PUBLIC SCHOOL, JAMMU

10. Which of the following in the primary function of money

a) Store of value b) Medium of exchange

c) Standard of deferred payments d) All the mentioned above

Worksheet-4
Economics CLASS : XII

1. It is the rate at which the Central Bank of a country lends money to commercial
banks in the event of any shortfall of funds in the short run
a) Bank Rate b) Repo Rate

c) Reverse Repo Rate d) Legal Reserve Rate

2. It is the rate at which Reserve Bank of India borrows money from Commercial
Banks
a) Bank Rate b) Repo Rate

c) Reserve Repo Rate d) Legal Reserve Rate

3. It is very quick and direct method for controlling the credit creating power of
Commercial Banks
a) Legal Reserve Ratio b) Margin Requirements

c) Open Market Operations d) Legal Reserve Rate

4. The functioning of Central Bank involves buying and selling of government

securities from or to the public and commercial banks
a) Selective Credit Controls b) Legal Reserve Requirements

c) Open Market Operations d) None of these

 JODHAMAL PUBLIC SCHOOL, JAMMU

5. Name the credit control method which refers to difference between the amount
of loan and market value of the security offered by the burrower against the loan
a) Selective Credit Controls b) Moral Suasion

c) Margin Requirements d) Legal Reserve Requirements

6. Explain Central Bank’s function as currency authority.

7. Explain the ‘Lender of the last resort’ function of the central bank.
8. Explain the ‘banker to the Government’ function of the Central Bank.
9. Explain ‘bankers bank’ function of Central Bank.
10. Explain how does a commercial bank create money.