HOLIDAYS HOME WORK CLASS XI COMMERCE

SUBJECT ACCOUNTANCY

ASSIGNMENT Of Basic Accounting Terms:

1. State whether the following are business transaction.

a. Rajesh started business with stock Rs 40,000 and furniture Rs 10,000.
b. Received an order for sale of goods Rs 30,000.
c. Goods sold Rs 25,000 on credit.
d. Interest paid on loan taken for the business Rs 1,000.
e. Paid tution fees of proprietor’s daughter from the personal bank account
Rs 1,800.
f. Paid rent of the residence of the proprietor from the business bank
account Rs 2,000.
g. Proprietor planned to sell goods worth Rs 5,00,000 next year.
h. Commission received Rs 700.
i. Goods returned by customer Rs 1,000.
2. Identify the assets, liabilities, expenses and incomes from the following:
Rent paid; land and building; cash in hand; creditors; salary outstanding;
commission received; furniture; bank loan; freight on purchase of goods;
debtors; motor vehicles; interest received; bank balance.
3. From the following identify the type of assets:
Computers; goodwill; short term investment; cash at bank; patent rights;
fixtures; prepaid commission; bills receivable; accrued interest.
4. From the following identify the type of liabilities:
Long term loans; creditors; bank overdraft; public deposits; salary due; rent
received in advance; bills payable.

ASSIGNMENT ON ACCOUNTING EQUATION

1. Give an imaginary transaction that will lead to:

a. Increase in one asset and decrease in another asset.
b. Decrease in an asset and decrease in a liability.
c. Increase in liabilities and decrease in owner's capital.
d. Increase in asset and increase in owner's capital.
e. Increase and decrease in capital only.
2. Calculate total equity if:
a. Owner's equity is ` 1,80,000
b. Creditors equity is ` 1,50,000
c. Revenue earned during the period ` 2,00,000
d. Expenses during the period , ` 80,000.
3. A. Calculate the amount of external equities as on 31st March ' 2015:
 Amit started a business with a capital of ` 20,000 on 1st April,2014.On the same
day, he also borrowed ` 5,000 from a friend to invest in business. During 2014-15,
he earned a profit of
` 10,000, introduced an additional capital of ` 12,000 and had withdrawn ` 6,000 for
his personal use. One 31st March, 2015, the total assets were ` 1,00,000.
b. Rajan started a business on 1st Jan, 2015 with a capital of ` 2,00,000 and loan
` 1,00,000 from the bank. On 31st Dec. 2015 his assets were ` 3,50,000. Find
out capital as on 31st Dec. 2015 and profit earned during the year.
c. Suresh has the following assets and liabilities as on 31st March 2015.
Ascertain his capital : Cash
` 25000, Bank ` 47500, Debtors ` 18000, Creditors ` 22000, Plant and Machinery ` 80,000,
Building
` 2,00,000, Furniture ` 24000, Bill Receivable ` 56500, Bill Payable ` 23500. (Ans. `
4,05,500)
d. If total assets of a business are ` 5,00,000 and net worth is ` 2,40,000.
Calculate total liabilities.
4. Show the effect of the following:- transactions on assets, liabilities and capital using
the accounting equation. Also prepare a balance sheet.
i. Started business with cash ` 60,000.
ii. Rent received ` 1500.
iii. Outstanding wages `700.
iv. Accured interest ` 550.
v. Commision received in advance ` 1,000.
vi. Invested in shares (personal), ` 1500.
vii. Invested in shares (for business purposes), ` 1000.

5. Show the accounting equation on the basis of following transactions:-

i. Twinkle commenced business with cash, ` 2,00,000.
ii. Purchased machinery worth ` 10,000.
iii. Depreciation on machinery 5%.
iv. Bought car for personal use ` 3000.
v. Interest on drawings charged @ 10%.
vi. Introduced fresh capital ` 25000.
vii. Purchased goods on credit ` 50000.
viii. Raised a bank loan of ` 70,000 from 'IDBI' Bank, Delhi.
ix. Paid interest on loan ` 2000 and instalment of ` 20000.
x. Paid to creditors in full settlement ` 49500.

ASIGNMENT CH 2
Activity 1
Ruchica’s father is the sole proprietor of ‘Friends Gifts’, a firm engaged in
the sale of gift items. In the process of preparing financial statements, the
accountant of the firm Mr. Goyal fell ill and had to proceed on leave.
Ruchica’s father was urgently in need of the statements as these had to be
 submitted to the bank, in pursuance of a loan of Rs. 5 lakh applied for the
expansion of the business of the firm. Ruchica who is studying Accounting
in her school, volunteered to complete the work. On scrutinising the
accounts, the banker found that the value of building bought a few years
back for Rs. 7 lakh has been shown in the books at Rs. 20lakh, which is its
present market value. Similarly, as compared to the last year,the method of
valuation of stock was changed, resulting in value of goods to be about 15
per cent higher. Also, the whole amount of Rs. 70,000 spent on purchase of
personal computer (expected life 5 years) during the year had been charged
to the profits of the current year. The banker did not rely on the financial
data provided by Ruchica. Advise Ruchica for the mistakes committed by
her in the preparation of financial statements in the context of basic concepts
in accounting.

Activity 2
A customer has filed a suit against a trader who has supplied poor quality
goods to him. It is known that the court judgment will be in favour of the
customer and the trader will be required to pay the damages. However, the
amount of legal damages is not known with certainity. The accounting year
has already been ended and the books are now finalised to ascertain true
profit or loss. The accountant of the trader has advised him not to consider
the expected loss on account of payment of legal damages because the
amount is not certain and the final judgment of the court is not yet out. Do
you think the accountant is right in his approach.

Choose the correct option:

1. During the life-time of an entity accounting produce financial statements
in accordance with which basic accounting concept:

(a) Conservation

(b) Matching

(c) Accounting period

(d) None of the above

2. When information about two different enterprises have been prepared

presented in a similar manner the information exhibits the characteristic of:
(a) Verifiability

(b) Relevance

(c) Reliability

(d) None of the above

3. A concept that a business enterprise will not be sold or liquidated in the

near future is known as :

(a) Going concern

(b) Economic entity

(c) Monetary unit

(d) None of the above

4. The primary qualities that make accounting information useful for

decision-making are :

(a) Relevance and freedom from bias

(b) Reliability and comparability

(c) Comparability and consistency

(d) None of the above

5. The realisation concept determines when goods sent on credit to

customers are to be included in the sales figure for the purpose of computing
the profit or loss for the accounting period. Which of the following tends to
be used in practice to determine when to include a transaction in the sales
figure for the period. When the goods have been:

a. dispatched
b. invoiced
c. Delivered
d. paid for
 Holidays Homework
Subject Business Studies
Class XI
Chapter 1 and 2

Q1. Shenoy wants to start a business of his own, he thinks that starting a business would give
him profits for sure. Which characteristic do you think Shenoy is lacking to understand in order
to start a business?

Q2. Why is business considered as an economic activity?

Q3. A sole proprietorship business, there is no chance of leaking the information to public. Name
the merit which this statement is indicating.

Q4. What will be the adverse impact on the partners of a firm if a partnership firm is not
registered?

Q5. All the members of a company sitting in a general meeting were killed by a bomb. Was the
company wound up?

Q6. Why is a company called an artificial person?

Q7. Last Mile' is one of the largest transportation industry in India provides services for different
projects including residential, commercial office, retail, industrial, logistics, hospitality and other
areas too. It's familiar name among the business houses in the country because of the large
dependency factor.

Which type of industry discussed in the above case?

Q8. Name the risk which involves both the possibility of loss as well as the possibility of profit.

Q9. Give any one consequence of non-registration of a partnership firm.

Q10. Why are business assets and liabilities of a joint stock company separate from those of its

members?

Q11. Name the type of company in which the right of members to transfer its shares is restricted?

Q12. If the business fails, the creditors can recover their dues from personal property of the
proprietor." Which feature of sole proprietorship is highlighted in this statement?

Q13. Name the risk which involves both the possibility of loss as well as the possibility of profit.

Q14. Name the partner who assumes liability without sharing in the profits of the business.
Q15. Name the form of business organisation where there is separation of ownership and
management.

Q16. ‘A company has perpetual succession.’ Comment.

Q17. Who are co-parcencers?

Q18. Distinguish between Business and Profession on the following basis:

(a) Risk, (b) Qualification.

Q19. Surbhi, from a young age had a deep connection with traditional Indian textiles and
craftsmanship. With her love for these Indian fabrics and her arsenal of fashion knowledge, she
now intends to glorify these national treasures with her ready-made store 'Armaniya'. 'Armaniya'
is an initiative to incorporate a perfect mix of latest trends, luxury fabrics, Indian traditional
weaves and culture all under one roof. She manages the business along with two employees i.e.,
salesman and a cashier. Now- a-days, Surbhi is facing a lot of problem as trends in the field are
continually changing, meaning business must continually adapt to market demands, this ever-
changing market along with strong competition had added to the trouble of declining sales.
Furthermore, one day Surbhi found her cashier doing some embezzlement of cash.

Identify and explain the different causes of business risks discussed in the above case.

Q20. Sanya is a sole proprietor running a boutique in West Delhi. She has been offered a contrac
by a trader for manufacturing fashionable garments. She immediately took the decision and
accepted the offer. She takes maximum efforts to make her business successful as she is the sole
recipient of all profits.

(a) Identify the two merits of sole proprietorship form of business organisation highlighted above
by quoting the lines.

(b) Also explain three other merits of sole proprietorship.

Q21. Explain any four social objectives of a business.

Q22. Jasbir is farmer. His younger brother Ajeet is a Company Secretary while his sister Geeta is
a nurse in a hospital. Name the economic activities in which they are engaged and differentiate
among them on the basis of:

(a) Mode of establishment

(b) Qualification

(c) Code of Conduct.

Q23. Aseem is doing an export business. Every time he would obtain an export order, he felt
stressed and had an anxiety about completing it on time. Few years later, his younger sister
Aalia, after completing a course in fashion designing, joined him in business as a partner
Consequently. Aseem realised that his level of stress and anxiety related to business operations
had reduced substantially and he had started feeling more relaxed. However, at the same time he
noticed that since both of them differ in their choice of colours for making garments lot of time is
being wasted in reaching a mutual consent.

(i) Identify and state the related advantage of partnership being highlighted in the above case

(ii) Identify and state the related disadvantage of partnership being discussed in the above case.

Q24. Every day Ananda collects 4,50,000 litres of milk from 2.2 million farmers, converts the
milk into branded packaged products and delivers milk products worth? 15 crore to over 10 lacks
retail outlets across the country. It all started in year 1990 with a group of farmers keen to free
themselves from intermediaries, gain access to market and thereby ensure maximum returns for
their efforts.

(a) Identify the type of forms of business organisation in above para.

(b) State any five limitations of that form of business organisation.

Q25. Pooja after doing her graduation degree started a burger store in her home town, under the
name of 'Burger India'. Encouraged with the success of her store, she started two more burger
stores in different area of her hometown. She earned good profit margins. After sometimes, the
staff of the burger stores starts giving less attention to the customers. Because of which, Pooja
started incurring huge losses and her business failed.

(a) Identify and explain the main cause behind the business failure of Pooja
(b) Explain any two causes of risk associated with Pooja's business other than identified in
part (a).

Q26. Sanchit. Hemant and Akshay have mutually decided to establish a new small scale hand
factory in a remote rural area in Jharkhand. As it will not only help to meet the growing d for
their products but also generate different kinds of employment opportunities in the vi and foster
its economic development. They have decided to promote their business in the f of partnership
Sanchit's association with the firm will be hidden from the general public. A will not take part in
the day-to-day activities of the business due to health issues. Ho Hemant will take actual part in
carrying out business of the firm on behalf of other para

(1) Identify and state any three types of partners highlighted in the above case.

Q27. Mohit was born and brought up in Punjabi Bagh, Delhi. He wanted to start a garment
manufacturing unit in Rohini. His father suggested to go for sole-proprietorship. But he was to
start a company. But his father did not approve of his idea, as according to him one person
cannot open a company. But Mohit insisted that he want to form a company by raising fund from
public,

(a) Can Mohit form a company?

(b) What kind of a company can be formed by him?

(c) Who are eligible to incorporate this kind of company?

(d) What are the restrictions on the business carried on by these companies?

Q28. Explain briefly any four characteristics of business.

Q29. Jasbir is farmer. His younger brother Ajeet is a Company Secretary while his sister Geeta is
a nurse in a hospital. Name the economic activities in which they are engaged and differentiate
among them on the basis of:

(a) Nature of work

(b) Transfer of Interest

(c) Risk Element.

Q30. Gupta Brothers inherited sone ancestral property. They decided to form a Hindu Undivided
Family (HUF) consisting of four male members and invested the ancestral property into the
business. The family is headed by Shyam Sunder Gupta. The business took a loan of rs 10 lakh
from Syndicate Bank for a term of three years. Due to poor financial position of the business, the
family members were unable to repay the loan. The bank filed a suit for the recovery of loan.
Shyam Sunder Gupta pleaded the court that as the entire loan was taken for the purpose of
business, all members of the business were liable for the repayment of the loan. The court gave a
decision and stated that all the members except Shyam Sunder Gupta, are liable for repayment of
the loan only to the extent of their share of co-parcenary property of business. However, Shyam
Sunder Gupta had to pay the balance amount from his personal property.

(a) Is the court's decision justified? Give reasons in support of your answer.

(b) State any three other features of HUF business.

(c) Which act governs HUF business?

(d) Can minor be a member of HUF? Justify.

Q31. Shree Radhey Industries Pvt. Ltd. is a large company which produces agricultural products
like sugarcane, cotton, etc. Instead of selling these agricultural products in the market, the
company uses these as raw materials to produce sugar and cloth in its own established sugar mill
and cloth mill at some rural area where there was a high unemployment. In this way, the
company provided employment to about 200 local people.

To which type and sub-type of industries are related the different products described in the above
para? Explain.

Q32. A group of people in a locality of Delhi used to go for a walk in the morning. After the
walk, they would often sit together and discus the subjects like Politics, Demonetisation,
Elections, Market prices of different goods, etc. There were about fifty persons in this group.
One day, instead of other subjects, their focus of discussion was 'Market Prices of Different
Goods. During the discussion, the emphasis laid on the point was that goods become very costly
by the time they reach the consumers after getting transported from the producers. Consequently,
everyone's budget is getting disturbed. To get rid of this problem some people suggested that
they should join together to form a society. The society would sell the goods to all the members
as per their requirements after buying them in a large quantity directly from the producers. This
suggestion was appreciated by all of them. They all became members of the society and
encouraged other people also to become its members. In no time, 100 members assembled and
the society was formed. The idea of forming the society immediately proved to be successful.
Now their budget became balanced. A special characteristic of this society was that apart from its
members it also sold goods to the other people of the society at cheaper rates. All of them were
very happy with the formation of the society.

(a) Identify and explain the type of the society formed by them.
(b) Explain any two merits of the society so formed.

Q33. Explain any three social objectives of business. (Any three)

Q34. Radhika Priya Dasi opened a boutique along with four workers. No problem of any type
was faced in opening the boutique. At her boutique special dresses made for marriages and
parties are sold. Despite there being a lot of competition in the market, the boutique was earning
a good profit. Since all the profit went into her pocket. Radhika Priya Dasi was getting inspired
to work with great efficiency. With the increase in workload, the number of workers was
increased from 4 to 6 by her. All of them were happy since the business was running
successfully. Unfortunately, one day the boutique caught fire due to a short circuit.
Consequently, Radhika Priya Dari had to suffer a heavy loss. The circumstances deteriorated so
much that the had to dispose of her personal properties to repay the boutique's debts. In order to
revive the boutique, she approached a bank which did not give a long-term loan to her.

(a) Identify the form of business organisation discussed in the above para

(b) Explain any three merits of the form of business organisation identified in (a) by quoting the
lines from the above para.
Q35. Nikita wanted to pitch in to reduce the financial crisis prevailing in her house and thought
of working as a cook. She started working in three different households, one Punjabi, One
Gujarati and one South Indian family. She soon realised that all the three households had
different cuisine. It was indeed a challenge for her to learn the techniques of the cuisine. All the
families greatly appreciated the timeframe within which she had mastered the local cuisine. After
working for them for a year, she decides to open a small eating joint of her own along with two
of her friends by the name 'Hum Sabi Ki Rasoi". They decided to share profits equally and that
each of them will be liable for acts performed by the other two. Soon the eatery became a hot
spot because of the fusion platter which was being offered.

(a) Identify and define the kind of business organisation which was set up by Nitika and her
friends.

(b) Identify and explain the features of this form of business organisation highlighted above.

Project Work

Roll Nos. 1 to 10 on Sole Proprietorship

Roll Nos. 11 to 20 on Partnership.

Roll Nos. 21 onwards Banking.

 Holidays Homework
Subject ECONOMICS
Class XI

Project Work

A Project file on the topic of collection of data: Primary and Secondary Method. Its merits and
demerits. Questionnaire and sample survey will be also done on 4 people with two different
methods of collection on the topic: Budget analysis of a XI class student.

Worksheet : Consumer’s Equilibrium

1. What are monotonic preferences?

2. Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your
friend monotonic?

3. Suppose a consumer can afford to buy 6 units of Good-1 and 8 units of Good-2 if she spends
her entire income. The prices of the two goods are ₹ 5 and ₹ 7 respectively. How much is the
consumer’s income?

4. What happens to the budget set if both the prices as well as the income double?

5. What is ‘ordinal utility’?

6. When is a consumer said to be rational?

7. State the Law of Diminishing Marginal Utility.

8. Define indifference map.

9. Give the equation of budget set.

10. What is a budget line?

11. Why is it downward sloping?

12. A consumer consumes only two goods A and B and is in equilibrium. Show that when price
of Good-B falls, demand for B rises. Answer this question with the help of utility analysis.

13. Identify which of the following is not true for the indifference curves. Give valid reason for
choice of your answer:

(i) Lower indifference curve represents lower level of satisfaction.

(ii) Indifference curve must be convex to origin at the point of tangency with the budget line at
the point of consumer’s equilibrium.

(iii) Two regular convex to origin indifference curves can intersect each other.

(iv) Indifference curves are drawn under the ordinal approach to consumer equilibrium.

14. Explain the meaning of diminishing marginal rate of substitution with the help of a numerical
example.

15. Explain the relationship between total utility and marginal utility with the help of a diagram

16. By spending his entire income only on two goods X and Y, a consumer finds that Marginal
utility of X > Marginal utility of Y Price of X Price of Y Explain how will the consumer react.

17. A consumer consumes only two goods X and Y both priced at ₹ 3 per unit. If the consumer
chooses a combination of these two goods with marginal rate of substitution equal to 3, is the
consumer is in equilibrium? Give reasons. What will a rational consumer do in this situation?
Explain

18. A consumer wants to consume two goods. The prices of the goods are ₹ 4 and ₹ 5
respectively. The consumer’s income is ₹ 20.

(i) Write down the equation of the budget line.

(ii) How much of Good-1 can the consumer consume if she spends her entire income on the
good?

(iii) How much of Good-2 can the consumer consume if she spends her entire income on the
good?

(iv) What is the slope of the budget line?

19. A consumer consumes two gods X and Y. Explain the conditions of consumer’s equilibrium
using utility analysis.

20. Define indifference curve. Discuss the properties of indifference curve.