Siri Kannada Text Book Class 6 Solutions Gadya Chapter 7 Yana Kuritondu Patra

Students can Download Kannada Lesson 7 Yana Kuritondu Patra Questions and Answers, Summary, Notes Pdf, Siri Kannada Text Book Class 6 Solutions, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Siri Kannada Text Book Class 6 Solutions Gadya Bhaga Chapter 7 Yana Kuritondu Patra

Yana Kuritondu Patra Questions and Answers, Summary, Notes

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Yana Kuritondu Patra Summary in Kannada

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1st PUC Computer Science Question Bank Chapter 15 Word Processing

You can Download Chapter 15 Word Processing Questions and Answers, Notes, 1st PUC Computer Science Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 1st PUC Computer Science Question Bank Chapter 15 Word Processing

1st PUC Computer Science Word Processing One Mark Questions and Answers

Question 1.
Define word processor.
Answer:
Word Processor is an application software that enables you to create, edit, print and save documents for future retrieval and reference.

Question 2.
Mention any two general word processing software.
Answer:

  1. Word perfect
  2. MS Word

Question 3.
Mention anyone important feature of a word processor.
Answer:
In a document file, you can make changes without retyping the entire document. If you make a typing mistake, you simply back up the cursor and correct your mistake.

Question 4.
What is the general default extension file name for word documents?
Answer:
The default extension file name for word documents is *.doc.

Question 5.
What does the title bar contain?
Answer:
The title bar contains filename, extension file name and application name.

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Question 6.
Define menu in a window.
Answer:
A menu is a collection of options that perform specific activities on the document.

Question 7.
What does the toolbar contain?
Answer:
The toolbar contains various tools or shortcut buttons, that are used in document processing activities.

Question 8.
What is the use of vertical scroll bar?
Answer:
The vertical scroll bar is used to view the contents by moving the page upwards or downwards on the screen.

Question 9.
What is the use of horizontal scroll bar?
Answer:
The horizontal scroll bar is used to view the contents by moving the page towards left or right sides of the screen.

Question 10.
What is the function of a ruler in a word processor?
Answer:
The ruler bar allows the user to format the vertical alignment of text in a document.

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Question 11.
What is workspace?
Answer:
Workspace is the area in the document window where users enter/type the text of a document.

Question 12.
Give the procedure to create a document file.
Answer:
The document file can be created using the ‘file’ menu with option ‘new’ or by pressing the keyboard keys Alt + F and select ‘New’.

Question 13.
What are the shortcut keys to create a document file?
Answer:
The shortcut keys to create a document file are Ctrl+N.

Question 14.
What are the shortcut keys to open a document file?
Answer:
The shortcut keys to open a document file are Ctrl+O and choose the filename from the list.

Question 15.
How is a file closed in word processor?
Answer:
The file can be closed by selecting close in the file menu.

Question 16.
How is a word processor software closed?
Answer:
The word processor software is closed by selecting the ‘exit’ option from the file menu.

Question 17.
Define formatting.
Answer:
Formatting is the process of changing the attribute of a text, document.

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Question 18.
What is a font style?
Answer:
A font style is a list of predefined font name, size, and alignment for various kinds of text elements.

Question 19.
What is the use of font dialogue box?
Answer:
The font dialogue box contains the tool buttons like font name, font size, font bold, etc.,

Question 20.
Write the utility of clipboard.
Answer:
Clipboard is used to place the previously done activities so that they can be recalled or redone.

Question 21.
What are bullets?
Answer:
Bullets are special symbols that can be used in a list of items.

Question 22.
What is a header?
Answer:
A header is a special area a|the top of every page normally allocated in the top margin area.

Question 23.
What is a footer?
Answer:
Footer is a special area at the bottom of every page normally allocated in the bottom margin area.

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Question 24.
Where are page numbers inserted in word processor?
Answer:
The page numbers can be inserted either in top or bottom margins.

Question 25.
What is spell checker?
Answer:
A utility that allows he user to check the spelling of the words. It will highlight the words that it does not recognize.

Question 26.
Define a table.
Answer:
A table is a collection of rows and columns.

Question 27.
What is the use of a print preview option?
Answer:
The print preview option allows the user to view the document content as to how it will get printed on the paper, before actually printing it.

1st PUC Computer Science Word Processing Two/ Three Marks Questions and Answers

Question 1.
Write any two advantages of a word processor.
Answer:
Two advantages of word processor are

  1. Font size and type of fonts can be changed.
  2. Spelling can be checked and corrections can be made automatically in the entire document.

Question 2.
Mention any two important features of to latest popular word processor software.
Answer:
Two important features of the latest popular word processor software are,

  1. One can publish a word document file as a PDF file.
  2. Attach a digital signature to a word document.

Question 3.
Write the procedure to load word processor software.
Answer:
In windows, to load MS word it is done as follows;

  1. Click on the start button
  2. Select all programs
  3. Select MS Office
  4. Select MS Word

Question 4.
Explain the use of scroll bar and status bar.
Answer:
1. Status Bar:
The status bar displays information about the currently active document. This includes the page number one is working, the column and line number of the cursor position and so on.

2. Scroll Bar:
The scroll bar helps user scroll the content or body of document. One can do so by moving the elevator button along the scroll bar, or by clicking on the buttons with the arrow markings on them to move up and down and left and right of a page.

Question 5.
What is the difference between save and save as option?
Answer:
The ‘save’ option is used to save the active file under the current file name, whereas save as can be used to save the file with a new name and in a new location.

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Question 6.
Write the procedure to open a document file.
Answer:
The procedure to open a document file is as follows:-

  1. Load MS Word
  2. Select file menu
  3. Select open option
  4. Select the file from the list

Question 7.
Explain copy and paste.
Answer:
Copy option is used to select the text for taking a copy and paste is used to insert the selected copy of the text at any chosen location.

Question 8.
Explain cut and paste.
Answer:
The cut option is used to select the text for move and paste is used to insert the selected text in the document. The test is removed from its earlier place.

Question 9.
Give the difference between undo and redo.
Answer:
‘Undo’ option cancels the last action done on the document, whereas redo repeat on redoes the last action done on the document.

Question 10.
What is the sequence of short cut keys to copy and paste?
Answer:
The sequence of short cut keys to copy and paste is Ctrl+C for copy and Ctrl+V for paste.

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Question 11.
What is the sequence of short cut keys to cut and paste?
Answer:
The sequence of short cut keys to cut and paste is Ctrl+X for cut and Ctrl+V for paste.

Question 12.
Name the two types of GUI Windows.
Answer:
The two types of GUI windows are

  1. Fixed windows and
  2. Popup windows

Question 13.
How is a document file created?
Answer:
A document file can be created using the following procedure
File Menu → New option.

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Question 14.
Name two important options of the File menu.
Answer:
The two important options of the file menu are open a document and exit option.

Question 15.
Give the short cut keys to create a new file and open a file.
Answer:
The short cut keys to create a new file is Ctrl+N and Ctrl+O to open a file.

Question 16.
What is the use of page setup option?
Answer:
The page setup option is used to select the paper size and paper orientation.

Question 17.
Mention any two options of print window.
Answer:
Two options the print window are page range and number of copies.

Question 18.
Write the options of page range in print window.
Answer:
The options of page range in print window are

  1. print all
  2. print selected
  3. current page
  4. pages

Question 19.
Mention any two options of the edit menu.
Answer:
Copy, paste and paste special are the important options of the edit menu.

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Question 20.
Write the uses of find and replace option of edit menu.
Answer:
The find option is used to search for a specific text and the replace option is used to replace the searched text with a new text.

Question 21.
What is the difference between normal view mode and page layout view mode?
Answer:
If the document get consists of graphical picture and text then in the normal mod 2 the graphical picture cannot be displayed. They can only be displayed in page layout mode.

Question 22.
Name any two options of insert menu.
Answer:
Two options of insert menu are

  1. Page break
  2. Tables
  3. Chart/spreadsheet

Question 23.
Explain page break.
Answer:
The word processor inserts a new page at the end of the current page automatically. If the user wants to end the page somewhere before the end of the current page, then a page break is used to break the page and take the cursor to the top of a new page.

Question 24.
Give the difference between clipart and word art.
Answer:
Clipart contains readily available graphical images in different categories. It consists of colorful images with rich graphics. Word art is an application of text, that can be presented as graphical rick text. The graphical text can be filled with effects, shown upside down, wavy texts, text in arch shape, etc.,

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Question 25.
What are subscripts and superscripts?
Answer:
The subscript is a character that appears below the text baseline. For example, H2O. In H2O, the letter 2 appears below the baseline and these are called subscript letters.

The superscript is a character that appears above the text baseline. For example, a2 + 1. In a2 + 1, 2 + 1 appears above the baseline and these are called superscript letters.

Question 26.
What are columns in a word processor? How is a columns inserted in a document? Explain.
Answer:
Columns divide a page vertically into separate areas to insert text. To insert columns use the following procedure.
Select format menu → column option → number of columns as 2 → press OK button.

1st PUC Computer Science Word Processing Five Marks Questions and Answers

Question 1.
What are the advantages of a word processor?
Answer:
The following are the advantages of a Word Processor.

  1. Text is inserted by typing into the computer, which allows alterations to be made easily.
  2. Words and sentences can be inserted, changed or deleted.
  3. Paragraphs or text can be copied /moved throughout the document.
  4. Margins and page length can be adjusted as required.
  5. Spelling can be checked and modified through the spell check facility.
  6. Multiple document/files can be merged.
  7. Multiple copies of letters can be generated with different addresses through the mail- merge facility.
  8. Drawings, clip art, and chart can be inserted in the document.

Question 2.
Draw the screen layout window of a word processor. Label the parts and explain.
Answer:
Screen layout window of a word processor
1st PUC Computer Science Question Bank Chapter 15 Word Processing 1
1. Title Bar:
The title bar displays the name of the currently active word document.

2. Tool Bars:
MS Word has a number of toolbars that help the user perform tasks faster and with great ease. Two of the most common toolbars are the formatting toolbar and the standard toolbar.

3. Ruler Bar:
The Ruler Bar allows the user to format the vertical alignment of text in a document.

4. Status Bar:
The Status Bar displays information about the currently active document. This includes the page number that one is working, the column and line number of the cursor position and soon.

5. Scroll Bar:
The Scroll Bar helps to scroll the contents or body of the document, user can do so by clicking on the buttons with the arrow marked on them, to move up or down and left or right in a page.

6. Workspace:
The Workspace is the area in the document window used to enter/type the text of document.

7. Main Menu:
The Word main menu is displayed at the top of the screen as shown. The main menu further displays a sub-menu. Some of the options are highlighted options and some of them appear as faded options. At any time, only highlighted options can be executed, faded options are not applicable.

In fact, if the option is faded user will not be able to choose it. option faded under the current situation may become highlighted under different situations and become executable.

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Question 3.
How is a document file created? Explain.
Answer:
To load MS Word user has to the click on start button → all programs → office 2007 → Word 2007. Then the document can be created by clicking on file from the menu bar and then selecting New option from the list. MS-Word will prompt to choose a document or a template. The shortcut key for the same operation is Alt+F to open the file option from the main menu.

Then the default Document and General and then is to be chosen. OK. Clicked on A blank document sets displayed to enter the text. MS-Word gives a temporary name to this file as ‘Document 1 ’, until the user saves that document with a file name. Instead of clicking on File and New, user can directly open a new document by clicking at the NEW icon on the standard toolbar.

Question 4.
Explain the various tools of formatting the toolbar.
Answer:
1. Font:
It displays different styles of fonts available for the use by displaying their names. For example, times new roman, Arial, etc.,

2. Font size:
The text size can be increased or decreased by selecting the numbers displayed in the font size. Font size is measured in points.

3. Boldface:
Select the text to have boldface and click on the Boldface button from the formatting toolbar.

4. Italics:
Select the text to have italics and click on the Italics button from the formatting toolbar.

5. Underline:
Select the text to have underline and click on the Underline button from the formatting toolbar Boldface, Italics and Underline buttons toggle between on and off. When the user wants to remove boldface, italics or underline, they can select the text again and click on Boldface, Italics or Underline button to remove it.

6. Subscripts and Superscripts:
User can add subscripts and superscripts to any typed text. First, the text to be shown as subscript or superscript is highlighted. Then x2 or x2 button for subscript/superscript is clicked upon.
Examples:
Superscript 40th
Subscript Bt

7. Text background color and font color:
User can select a color for the text background and for text also. There are two tool buttons in format tools bar to give background color to the selected text and to give a different color to the selected text.

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Question 5.
Write a note on text alignments.
Answer:
Alignment is arranging/inserting the text towards the left, right or center. By default, Ms-Word aligns all the text as left-aligned.
1. Left-aligning Text:
The paragraph a text to be aligned is selected and the left align tool from the formating toolbar is clicked upon to get the text aligned to the left, as shown.
1st PUC Computer Science Question Bank Chapter 15 Word Processing 2
2. Right-aligning Text:
The paragraph or text to be aligned is selected and the right align tool from the formatting tool basis clicked upon to get the text aligned to the right, as shown.
1st PUC Computer Science Question Bank Chapter 15 Word Processing 3
3. Center-aligning Text:
Center alignment moves the selected text and adjusts it to the center of the line. The paragraph or text is selected and the centre align tool from the formatting toolbar is clicked upon to get the text aligned at the centre, as shown.
1st PUC Computer Science Question Bank Chapter 15 Word Processing 4
4. Justification:
After aligning the text, user may like to justify the whole paragraph. For that, the paragraph of the text and is selected clicked upon the Justification Tool from the Formatting toolbar to get the entire paragraph aligned.
1st PUC Computer Science Question Bank Chapter 15 Word Processing 5

Question 6.
Write a short note tables.
Answer:
Sometimes there will be need to present data and information in a tabular form while preparing reports along with the text. MS-Word provides a special feature called Table which helps to present the information in a tabular form.
1. Creating a Table:
To create a table in a document, insert option from the table menu is selected and where the houser wants to insert the table and then Insert Table if is selected after clicking on Table from the menu bar. From the box, the user can specify the number of columns and rows and then click on OK to insert the table. A table consists of vertical columns and horizontal rows as shown above. The intersection of a column and a row is called a cell. Gridlines are displayed between the cells.

2. Entering text into Table:
After creating a table, the user can enter text by clicking on any cell. The Tab key can be used to move to the next cell.

3. Modifying Table:
After creating the table and entering the data. User can still perform various operations on the table, which are described below:

  • Inserting Rows and Columns:-
    To insert a row at the end of a table, the cursor is brought to the last cell and the tab is proceed, key. To insert a row within a table is brought the cursor to the row above which the new row has to appear and then the Insert Row option is selected from the Table menu bar.A new row gets inserted above the selected row. To insert a column, column option is selected from the Table menu and then the Insert Column option. A new column will be inserted to the left of the selected column.
  • Deleting Rows and Column:-
    To delete one or more contiguous rows in a table, the row(s) to be deleted and then are selected delete Rows options from the Table menu is selected. To delete one or more contiguous columns, the column(s) to be deleted and then are selected Delete Columns option from the Table menu is selected. To delete an entire table, the table is selected and then Delete Rows option is selected from the Table menu.
  • Changing column width:-
    To change the column width, when pointed the column boundary that is to be changed, the mouse pointer will become a horizontal double-headed arrow and the column boundary the desired width and the mouse button released.You can also change the column width by selecting the Column and then selecting the option Cell Height and Width from Table menu. Enter the desired width in the Width of Column text box and click on OK to change the column width of the selected column.
  • Changing Row Height:-
    To change height of a row, point the row boundary that you want to change, the mouse pointer will become a vertical down headed arrow. Then drag the row boundary to the desired height and then release the mouse button.You can also change the column width by selecting the Row and then selecting the option Cell Height and Width from Table menu. Enter the desired height in the Height of Row text box and click on OK to change the row height of the selected row.

4. Sort:
Using this option any column of the table can be sorted either on ascending or descending order. This is applicable only for the numerical values in the cells of the table.

5. Formula:
For numerical values, user may like to apply different mathematical operations. Using the ‘Formula’ feature of MS-WORD user can calculate the values and insert at the proper places. The column width can also be changed by selecting the column then the option cell width from the table menu. Desired width can be entered in the width of the column text box and clicked upon.

Question 7.
Write a short note on bullets and numbering.
Answer:
Many times there maybe needs to highlight some of the points of the documents in a list format. Such documents may contain list of items to which one would like to call attention and so, such items can be numbered or bulleted. This improves the organization and appearance of the document.
1. Adding Numbers and Bullets
To add numbers to a specific paragraph, Format from the main menu is selected and then on Bullets and Numbering, “numbered” tab is then chosen and the format of the number with OK will get numbers added to the list. In order to assign a numbered style user has to select numbered, and to select a bullet style select bullet from the dialog box and then click on OK to get the new bullet style to the selected text.

2. Removing Number and Bullets
When the users want to remove the numbers or bullets, the list that contains the number or bullets is high lighted and “none” option from Number tool or Bullet tool is clicked upon. This removes the applied number or bullets.

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Question 8.
Write a short note on mail merge.
Answer:
Mail merge helps to generate letters by combining contents of one document with the content of addresses. In a situation where a same letter is to be sent to the addresses of many then mail merge is used. Mail Merge requires the main document and a data source document.
1. Main Document:
In Mail Merge, the main document is the common letter, which contains the common information. It also contains the field names, which contains the instructions for carrying out the merge.

2. Data Source:
Data source is also called the data file. It contains information that needs to be inserted in each page of the main document. Normally it contains the address information.

3. Form Letter:
Form letter is the resultant document of the mail merge operations, which contains the copy of the main document along with each piece of information stored in the data file.

2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company

You can Download Chapter 3 Financial Statements of a Company Questions and Answers, Notes, 2nd PUC Accountancy Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company

2nd PUC Accountancy Financial Statements of a Company NCERT Textbook Questions and Answers

2nd PUC Accountancy Financial Statements of a Company Short Answer Type Questions and Answers

Question 1.
What is public company?
Answer:
A public company is defined as a company that offers a part of its ownership in the form of shares, debentures, bonds, securities to the general public through stock market:

Question 2.
What is private limited company?
Answer:
As defined by the Section 3. (1) (iii) of Companies Act 1956, private limited company is defined by the following characteristics:

  • It restricts the right to transfer its shares.
  • There must be at least two and a maximum of 50 members (excluding current and former employees) to form a private company.
  • It ca not invite application from the general public to subscribe its shares, or debentures.
  • It cannot invite or accept deposits from persons other than its members, Directors and their relatives.

Question 3.
Define Government Company?
Answer:
As per the Section 617 of Company Act of 1956, a Government Company means any company in which not less than 51% of the paid up share capital is held by the Central Government, or by any State Government or Governments, or partly the Central Government and partly by one or more State Governments and includes a company which is a subsidiary of a Government Company as thus defined.

Question 4.
What do you mean by a listed company?
Answer:
Those public companies whose shares are listed and can be traded in a recognised stock exchange for public trading like, Tata Moto. s, Reliance, etc are called Listed Company. These companies are also called Quota Cornpanies.

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Question 5.
What are the uses of securities premium?
Answer:
As per the Section 78 of the Companies Act of 1956, the amount of securities premium can be used by the company for the following activities:

  • For paying up unissued shares of the company to be issued to members of the company as fully paid bonus share.
  • For writing off the preliminary expenses of the company.
  • For writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
  • For paying up the premium that is to be payable on redemption of preference shares or debentures of the company.
  • Further, as per the Section 77A, the securities premium amount can also be utilised by the company to Buy-back its own shares.

Question 6.
What is buy-back of shares?
Answer:
Buy-back of shares means repurchasing of its own shares by a company from the market for reducing the number of shares in the open market.

Question 7.
Write a brief note on ‘Minimum Subscription’.
Answer:
When shares are issued to the general public, the minimum amount that must be subscribed by the public so that the company can allot shares to the applicants is termed as Minimum Subscription. As per the Company Act of 1956, the Minimum Subscription of share cannot be less than 90% of the issued amount. If the Minimum Subscription is not received, the company cannot allot shares to its applicants and it shall immediately refund the entire application amount received to the public.

2nd PUC Accountancy Financial Statements of a Company Long Answer Type Questions and Answers

Question 1.
Explain the nature of the financial statements.
Answer:
The nature of the financial statements depends upon the following aspects;
1. Recorded facts: The items recorded in the financial statements reflect their original cost i.e. the cost at which they were acquired. Consequently, financial statements do not reveal the current market price of the items. Further, financial statements fail to capture the inflation effects.

2. Conventions: The preparation of financial statements is based on some accounting conventions like, Prudence Convention, Materiality Convention, Matching Concept, etc. The adherence to such accounting conventions makes financial statements easy to understand, comparable and reflects the true and fair financial position of the company.

3. Accounting Assumptions: These basic accounting assumptions like Going Concern Concept, Money Measurement Concept, Realisation Concept, etc are called as postulates. While preparing financial statements, certain postulates are adhered to. The nature of these postulates is reflected in the nature of the financial statements.

4. Personal Judgments: Personal value judgments play an important role in deciding the nature of the financial statements. Different judgments are attached to different practices of recording.transactions in the financial statements. Thus, personal judgments determine the nature of the financial statements to a great extent.

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Question 2.
Explain in detail about the significance of the financial statements.
Answer:
The importance of financial statements is mentioned below:
1. Provides Information: Financial statements provide information to various accounting users both internal as well as external users. It acts as a basic platform for different accounting users to derive information according to varying needs. For example, the financial statements on one hand help the shareholders and investors in assessing the viability and return on their investments, while on the other hand, the financial statements help the tax authorities in calculating the amount of tax liability of the company.

2. Cash Flow: Financial statements provide information about the cash flows of the company. The financial statements help the creditors and other investors.in determining solvency of company.

3. Effectiveness of Management: The comparability feature of the financial statements enables management to undertake comparisons like inter-firm and intra-firm comparisons. This not only helps in assessing the viability and performance of the business but also helps in’ designing policies and drafting policies. The financial statements enhance the effectiveness and efficacy of the management.

4. Disclosure of Accounting Policies: Financial statements provide information about the various policies, important changes in the methods, practices and process of accounting by the company. The disclosure of the accounting policies makes financial statements simple, true and enables different accounting users to understand without any ambiguity.

5. Policy Formation by Government: It needs information to determine national income, GDP, industrial growth, etc. The accounting information assist the government in the formulation of various policy measures and to address various economic problems like employment, poverty etc.

6. Attracts Investors and Potential Investors: They invest or plan to invest in the business. Hence, in order to assess the’viability and prospectus of their investment, creditors need information about profitability and solvency of the business.

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Question 3.
Explain the limitations of financial statements.
Answer:
The following are the limitations of financial statements.
1. Historical Data: The items recorded in the financial statements reflect their original cost i.e. the cost at which they were acquired. Consequently, financial statements do not reveal the current market price of the items. Further, financial statements fail to capture the inflation effects.

2. Ignorance of Qualitative Aspect: A financial statement does not reveal the qualitative aspects of a transaction. The qualitative aspects like colour, size and brand position in the market, employee’s qualities and capabilities are not disclosed by the financial statements.

3. Biased: Financial statements are based on the personal judgments regarding the use of methods of recording. For example, the choice of practice in the valuation of inventory, method of depreciation, amount of provisions, etc. are based on the personal value judgments and may differ from person to person. Thus, the financial statements reflect the personal value judgments of the concerned accountants and clerks.

4. Inter-firm Comparisons: Usually, it is difficult to compare the financial statements of two companies because of the difference in the methods and practices followed by their respective accountants.

5. Window dressing: The possibility of window dressing is probable. This might be because of the motive of the company to overstate or understate the assets and liabilities to attract more investors or to reduce taxable profit. For example, Satyam showed high fixed deposits- in the Assets side of its Balance Sheet for better liquidity that gave false and misleading signals to the investors.

6. Difficulty in Forecasting: Since the financial statements are based on historical data, so they fail to reflect the effect of inflation. This drawback makes forecasting difficult. Prepare the format of income statement and explain its elements
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 1
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 2

Prepare the format of balance sheet and explain the various elements of balance sheet.
Vertical form of balance sheet
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 3
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 4
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 5

1. Share Capital: It is the first item on the Liabilities side. It consists of the following items:

  • Authorised Capital
  • Issued Capital: Equity share and preference share.
  • Subscribed Capital less Call in Arrears add Forfeited Shares

2. Reserve and Surplus: As per the Schedule VI,  it consists of the following items:

  • Capital Reserve
  • Capital Redemption Reserve
  • Security Premium
  • Other Reserve less Debit balance of P & L A/c
  • Credit balance of P & L A/c
  • Proposed Additions.
  • Sinking Fund

3 . Secured Loans

  1. Debentures
  2. Loan and advances from bank etc.

4. Unsecured Loans

  • Fixed Deposits
  • Loan & Advances from subsidiaries

5. Fixed Assets: These are those assets that are used for more than one year, like:

  • Goodwill
  • Land
  • Building
  • Plant ec Machinery
  • Patents, Trade Marks
  • Livestock
  • Vehicles, etc.

6. Current Assets: Assets that can be easily converted into cash or cash equivalents are termed as current assets. These are required to run day to day business activities; for example, cash, debtors, stock, etc.

7. Current Liabilities: Those liabilities that are incurred with an intention to be paid or are payable within a year; for example, bank overdraft creditors, bills payable, outstanding wages, short-term loans, etc are called current liabilities.

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Question 4.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
Answer:
The various parties that are directly or indirectly interested in the financial statements of a company can be categorized into the following two categories:
Internal Parties: The following are the various internal accounting users who are directly related to the company.

a) Owner: The owner/s is/’are interested in the profit earned or loss incurred during an accounting period. They are interested in assessing the profitability and viability of the capital invested by them in the business.

b) Management: The financial statements help the management in drafting various policies measures, facilitating planning and decision making process. The financial statements also enable management to exercise various cost controlling measures and to remove inefficiencies.

c) Employees and workers: They are interested in the timely payment of wages and salaries, bonus and appropriate increment in their wages and salaries. With the help of the financial statements they can know the amount of profit earned by the company and can demand reasonable hike in their wages and salaries.

External Parties: There are various external users of accounting who need accounting information for decision making, investment planning and to assess the financial position of the business. The various external users are given below.

a) Banks and other financial institutions: Banks provide finance in the form of loans and advances to various businesses. Thus, they need information regarding liquidity, creditworthiness, solvency and profitability to advance loans.

b) Creditors: These are those individuals and organisations to whom a business owes money on account of credit purchases of goods and receiving services; hence, the creditors require information about credit worthiness of the business.

c) Investors and potential investors: They invest or plan to invest in the business. Hence, in order to assess the viability and prospectus of their investment, creditors need information about profitability and solvency of the business.

d) Tax “authorities: They need information about sales, revenues, profit and taxable income in order to determine the levy various types of tax on the business.

e) Government: It needs information to determine national income, GDP, industrial growth, etc. The accounting information assist the government in the formulation of various policies measures and to address various economic problems like employment, poverty etc.

f) Researchers: Various research institutes like NGOs and other independent research institutions like CRISIL, stock exchanges, etc. undertake various research projects and the accounting information facilitates their research work.

g) Consumers: Every business tries to build up reputation in the eyes of consumers, which can be created by the supply of better quality products and post-sale services at reasonable and alfordable prices. Business that has transparent financial records, assists the customers to know the correct cost of production and accordingly assess the degree of reasonability of the price charged by the business for its products and, thus, helps in repo building of the business.

h) Public: Public is keenly interested to know the proportion of the profit that the business spends on various public welfare schemes; for example, charitable hospitals, funding schools, etc. This information is also revealed by the profit and loss account and balance sheet of the business.

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Question 5.
Financial statements reflect a combination of recorded facts, accounting conventions and personal judgments’ discuss.
Answer:
The financial statements are the end-products of the accounting process. The financial statements not only reveal the true financial position of the company but also help various accounting users in decision making and policy designing process. The nature of the financial statements depends upon the following aspects like recorded facts, conventions, concepts, and personal judgment.

1. Recorded facts: The items recorded in the financial statements reflect their original cost i.e. the cost at which they were acquired. Consequently, financial statements do not reveal the current market price of the items. Further, financial statements fail to capture the inflation effects.

2. Conventions: The preparation of financial statements is based on some accounting conventions like,: Prudence Convention, Materiality Convention, Matching Concept, etc. The adherence to such accounting conventions makes financial statements easy to understand, comparable and reflects the true and fair financial position of the company.

3. Accounting Assumptions: These basic accounting assumptions like Going Concern Concept, Money Measurement Concept, Realisation Concept, etc are. called as postulates. While preparing financial statements, certain postulates are adhered to, The nature of these postulates is reflected in the nature of the financial statements.

4. Personal Judgments: Personal value judgments play an important role in deciding the nature of the financial statements. Different judgments are attached to different practices of recording transactions in the financial statements. Thus, personal judgments determine the nature of the financial statements to a great extent.

Question 6.
Explain the process of preparing income statement and balance sheet.
Answer:
The process of preparing Horizontal Form of Income Statement is explained below in a chronological order:

  1. Prepare a Trial Balance on the basis of the balances of various accounts in the ledger.
  2. Record Opening Stock, Purchases, Manufacturing Expenses and other direct expenses on the debit side of Trading Account
  3. Record Sales and Closing Stock on the credit side of the Trading Account.
  4. Ascertain the balancing figure by totalling both the sides of the Trading Account If the credit side exceeds the debit side, then the balancing figure is termed as Gross Profit, but if the debit side exceeds the credit side, then the balancing figure is termed as Gross Loss.
  5. Carry forward the Gross Profit (Gross Loss) to the credit (debit) side of the Profit and Loss Account.
  6. Record all current year’s operating and non-operating revenue expenditures with their relevant adjustments on the debit side of the Profit and Loss Account.
  7. Record ail current year’s operating and non-operating revenue incomes with their relevant adjustments on the credit side of the Profit and Loss Account.
  8. Ascertain the balancing figure by totalling both the sides of the Profit and Loss Account. If the credit exceeds the debit side, then the balancing figure is termed as Net Profit, but if the debit side exceeds the credit side, then the balancing figure is termed as Net Loss.

The process of preparing Horizontal Form of Balance Sheet is explained below in a chronological order:

  1. Prepare a Trial Balance on the basis of the balances of various accounts in the ledger.
  2. Record all the debit balances of Real and Personal Accounts on the left hand side (i.e. Assets side) of the Balance Sheet after making all adjustments for provision and other related items.
  3. Record all the credit balances of Real and Personal Accounts on the right hand side (i.e. Liabilities side) of the Balance Sheet after making all adjustments for interest and outstanding items.
  4. Add Net Profit to the Opening Capital and deduct Net Loss, if any from the Opening Capital
  5. Ascertain the total of two sides, jvhich must be equal.

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2nd PUC Accountancy Financial Statements of a Company Numerical Questions and Answers 

Question 1.
Show the following items in the balance sheet as per the provisions of the companies Act, 1956 in (Revised) Schedule VI:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 6
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 7

Question 2.
On 1stApril, 2013, Jumbo Ltd., issued 10,000; 12% debentures of₹ 100 each a discount of 20%; redeemable after 5 years. The company decided to write-off discount on issue of such debentures over the life time of the Debentures. Show the items of the company immediately after the issue of these debentures.
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 8

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Question 3.
From the following information prepare the balance sheet of Gitanjali Ltd. Invntories ₹ 14,00,000; Equity Share Capital ₹ 20,00,000; Plant and Machinery ₹ 10,00, 000; Preference Share Capital ₹ 12,00,000; Debenture Redemption Reserve ₹ 6,00,000; Outstanding Expenses ₹ .3,00,000; Proposed-Dividend ₹ 5,00,000; Land and Building ₹ 20,00,000; Current Investment ₹ 8,00,000; Cash. Equivalent ₹ 10,00,000; Short term loan from Zaveri Ltd. (A Subsidiary Company of Twilight Ltd.) ₹ 4,00,000; Public Deposits ₹ 12,00,000.
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 9
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 10

Question 4.
From the following information prepare the balance sheet of Jam Ltd. Inventories ₹ 7,00,000; Equity Share Capital ₹ 16,00,000; Plant and Machinery ₹ 8,00,000; Preference Share Capital ₹ 6,00,000; General Reserves ₹ 6,00,000; Bills payable Rs 1,50,000; Provision for taxation ₹ 2,50,000; Land and Building k 16,00,000; Non-current Investments ₹ 10,00,000; Cash at Bank ₹ 5,00,000; Creditors ₹ 2,00,000; 12% Debentures ₹ 12,00,000.
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 11
Note to account
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 12
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 13

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Question 5.
Prepare the balance sheet of Jyoti Ltd., as at March 31, 2018 from the following information. Building ₹ 10,00,000; Investments in the shares of Metro Tyers Ltd. ₹ 3,00,000; Stores & Spares ₹ 1,00,000; Discount on issue of 10% debentures of ₹ 10,000; Statement of Profit and Loss (Pr.). ₹ 90,000; 5,00,000 Equity Shares of ₹ 20 each fully paid-up; Capital Redemption Reserve ₹ 1,00,000; 10% Debentures ₹ 3,00,000; Unpaid dividends ₹ 90,000; Share options outstanding account ₹ 10,000.
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 14
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 15

Question 6.
Brinda Ltd., has furnished the following information:
(a) 25,000,10% debentures of ₹ 100 each;
(b) Bank Loan of ₹ 10,00,000 repayable after 5 years;
(c) Interest on debentures is yet to be paid.
Show the above items in the balance sheet of the company as at March 31, 2018.
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 16

Question 7.
Prepare a Balance sheet of Black Swan Ltd., as at March 31, 2013 from the following information:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 17
Answer:
2nd PUC Accountancy Question Bank Chapter 3 Financial Statements of a Company - 18

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Siri Kannada Text Book Class 6 Solutions Gadya Chapter 6 Meravanige

Students can Download Kannada Lesson 6 Meravanige Questions and Answers, Summary, Notes Pdf, Siri Kannada Text Book Class 6 Solutions, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Siri Kannada Text Book Class 6 Solutions Gadya Bhaga Chapter 6 Meravanige

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Siri Kannada Text Book Class 6 Solutions Gadya Chapter 5 Dhanyavada Helida Kokkare

Students can Download Kannada Lesson 5 Dhanyavada Helida Kokkare Questions and Answers, Summary, Notes Pdf, Siri Kannada Text Book Class 6 Solutions, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Siri Kannada Text Book Class 6 Solutions Gadya Bhaga Chapter 5 Dhanyavada Helida Kokkare

Dhanyavada Helida Kokkare Questions and Answers, Summary, Notes

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2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures

You can Download Chapter 2 Issue and Redemption of Debentures Questions and Answers, Notes, 2nd PUC Accountancy Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures

2nd PUC Accountancy Issue and Redemption of Debentures NCERT Textbook Questions and Answers

2nd PUC Accountancy Issue and Redemption of Debentures Short Answer Type Questions and Answers

Question 1.
What is meant by a Debenture?
Answer:
The word Debenture is derived from a Latin word ‘debere’ which means to borrow. A debenture is issued in the form of a certificate under the seal of a company and containing a contract for the repayment of the principal sum after a fixed period of time and payment of interest at regular intervals, generally half yearly. Debentures are issued by a company for acquiring long-term borrowings.

Question 2.
What does a Bearer Debenture mean?
Answer:
When a company does not maintain any record of the debenture holders and the debenture is transferable mere by delivery, then the type of the debenture held by the holders is termed as Bearer Debenture. Interests on such debentures are paid to the persons who produce the interest coupons that are attached with these debentures in a specified bank.

Question 3.
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 lender who receives debenture as collateral security is not entitled for interest on these debentures.

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Question 4.
What is meant by ‘Issue of debentures for Consideration other than Cash?
Answer:
If a company purchases assets from its suppliers or vendors, then instead of paying them in cash the company issues debentures to them. This is known as issue of debenture for consideration other than cash. The issue of debenture for consideration other than cash serves the purpose of both the vendor as well as of the purchaser (company).

Question 5.
What is meant by ‘Issue of debenture at discount and redeemable at premium?
Answer:
When debentures are issued below its par value (or the face value) but are redeemed at price higher than its par value, then it is termed as issue of debenture at discount and redeemable at premium. The difference between the issue price and the redemption price is treated as loss on issue of debenture.

Question 6.
What is ‘Capital Reserve’?
Answer:
Capital Reserve is a reserve that is created out of capital profits i.e gains or profits arising from other than the normal activities of business operations i.e. activities other than sale or purchase of goods and services. This reserve is utilised to meet future capital losses, if any, and to issue bonus shares. It cannot be distributed as dividend among the shareholders.

Question 7.
What is meant by an ‘Irredeemable Debenture’?
Answer:
Irredeemable Debentures are those debentures that are not repayable or redeemable by a company during its life time. These are repayable only at the time of winding up of the _ company. These are .also known as Perpetual Debentures that means debentures having indefinite life. In India, now’ days, no company can issue irredeemable debentures.

Question 8.
What is a ‘Convertible Debenture’?
Answer:
Convertible Debentures are those debentures that can be converted into equity shares after a specified period of time.

Question 9.
What is meant by ‘Mortgaged Debentures’?
Answer:
Mortgaged Debentures are those debentures that are secured against assets of a company.These are also known as secured debentures. If the debentures are secured against a particular asset, then it is called fixed charge v’hereas, if the debentures are secured against all the assets of a company, then it is called floating charge. In case the company fails to pay back the principal amount of debenture or fails to meet its interest obligations on the due date, then the debenture holders have the right to sell the mortgage asset in order to realise their amount due to the company.

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Question 10.
What is discount on issue of debentures?
Answer:
When the debentures are issued at a price below its par value or face value, then it is said that the debentures are issued at discount. The difference between the issue price and the face , value of the debenture, is regarded as a capital loss.

Question 11.
What is meant by ‘Premium on Redemption of Debentures’?
Answer:
When the debentures are redeemed at a price more than its face value or the par value, then it is said that the debentures are redeemed at premium. The difference between the redeemed price and the par value is regarded as a capital loss and this loss is written off till the redemption of the debentures.

Question 12.
How are debentures different from shares? Give two points.
Answer:

Shares Debentures
A person holding the shares is called shareholder. A person having the debentures is called’ debenture holder
Shares are part of the capital of the company. Debentures are part of the loan of the company.
Shares cannot be converted into debentures. Debentures can be converted into shares.
Shareholders being real owners have voting rights. Debenture holders being only creditors do not have voting rights.
Share may be fully or partly paid. Debentures are always fully paid up.

Question 13.
Name the head under which ‘discount on issue of debentures’ appears in the Balance Sheet of a company.
Answer:
Discount on Issue of Debentures is regarded as a capital loss. As per the Revised Schedule VI of the Companies Act,
Discount on Issue of Debentures is shown in the Notes to Accounts of Other Non-Current Assets. The final balance is shown on the Assets side of the Company’s Balance Sheet under the main head of Non-Current Assets.

Question 14.
What is meant by redemption of debentures?
Answer:
Redemption of debenture means repayment of debentures by the company to the debenture holders. In other words, it implies the discharge of liabilities by repaying the amount due to the debenture holders as per the terms and conditions determined at the time of issue of debentures. Debentures may be redeemable at par, premium or discount, but, now a day, these are mostly redeemable at par or premium.

Question 15.
Can the company purchase its own debentures?
Answer:
Yes, a company can purchase its own debentures provided it is authorised by its Article of Association. As per the Company Act, if a company is authorised by its Article of Association, only then it may purchase its own debentures from the open market.

Question 16.
What is meant by redemption of debentures by conversion?
Answer:
When a debenture holder can convert his/her debentures into shares or new debentures after – the expiry of a specified period of time, then it is known as redemption of debentures by conversion. As the company do not need to pay any funds for the redemption, so there is no need to maintain the Debenture Redemption Reserve (DRR). The new shares or debentures may be issued at par, premium or at discount.

Question 17.
How would you deal with‘Premium on Redemption of Debentures’?
Answer:
When the debentures are redeemed at a price more than its face value or the par value, then it is said that the debentures are redeemed at premium. The difference between the redeemed price and the par value is regarded as a capital loss and this loss is written off till the redemption of the debentures. The Premium on Redemption of Debenture is shown in the Notes to Accounts under the sub-head of ‘Other Long-term Liabilities’. The final balance is shown under the main head of ‘Non-Current Liabilities’ on the Equity and Liabilities side of the Company’s Balance Sheet.

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Question 18.
What is meant by ‘Redemption out of Capital?
Answer:
When debentures are redeemed out of capital and no profits are utilised for redemption, then such redemption is termed as redemption out of capital. In such a situation, no profits are transferred to the Debenture Redemption Reserve.

Question 19.
What is meant by redemption of debentures by ‘Purchase in the Open Market’?
Answer:
According to the Company Act, if a company is authorised by its Article of Association, only then it may purchase its own debentures from the open market.

Question 20.
Under which head is the ‘Debenture Redemption Reserve’ shown in the Balance Sheet?
Answer:
As per the Revised Schedule VI, Debenture Redemption Reserve (DRR) is shown in the Notes to Accounts of Reserve and Surplus. The final balance after adding DRR is shown as the subhead ‘Reserves and Surplus’ under the main head of Shareholders’ Funds on the Equity and Liabilities side of the Company’s Balance Sheet.

2nd PUC Accountancy Issue and Redemption of Debentures Long Answer Type Questions and Answers

Question 1.
What is meant by a debenture? Explain the different types of debentures?
Answer:
The word Debenture is derived from a Latin word ‘debere’ which means to borrow. A debenture is issued in the form of a certificate under the seal of a company and containing a contract for the repayment of the principal sum after a fixed period of time and payment of interest at regular intervals, generally half yearly. Debentures are issued by a company for acquiring long-term borrowings.

Types of Debenture:

  • Redeemable Debentures: The debentures which are repayable on a specified date are called redeemable debentures.
  • Irredeemable Debentures: If there is no fixed time by which the company is bound to pay back the money then it is known as irredeemable debentures. These debentures are also called perpetual debentures.
  • Convertible Debentures: Debentures which can be converted into equity shares after a specified period of time are known as convertible debentures.
  • Non-convertible Debentures: Debentures which cannot be converted into equity shares after a specified period of time are known as non-convertible debentures.
  • Secured Debentures: If debentures are issued with a charge on the assets of the company as security it is known as Secured debentures. The charge may be fixed i.e., on specified asset, or it may be floating. Secured debentures are also known as mortgaged debentures.
  • Unsecured Debentures: if debentures are issued with merely a promise of payment without having any charge on any assets as security is known as, unsecured debentures.
    So these debentures are also known as naked or simple debentures.
  • Registered Debentures: Registered debentures are those which are duly recorded in the register of debenture holders maintained by the company. These can be transferred only through a regular transfer deed.
  • Bearer Debentures: Bearer debentures are those which are not recorded in the register of debenture holders maintained by the company.

Question 2.
Distinguish between a debenture and a share. Why is debenture known as loan capital? Explain.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 1
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 2

Issue of debentures implies incurring long-term indebtedness. Generally, a company issues debentures for acquiring long-term borrowings to achieve its long-run targets and growth. Like the owner’s capital, interest is also payable on the principal amount of the debenture. The interest paid is regarded as an expense for the company and is deductible under Income Tax Act. Therefore, debentures are also known as loan capital because they are redeemable after a long period of time.

Question 3.
Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?
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 lender who receives debenture as collateral security is not entitled for interest on these debentures. If any default is made by the company in paying back the principal amount (i.e. the loan amount) or interest on the loan, then the lender has the full right to recover his/her dues from the sale of primary security. But, if the primary security is not sufficient to recover the amount of debt, then the debentures issued as collateral may be used for recovery of the remaining amount.

Accounting Treatment
There are two ways to record issue of debentures as collateral security:

1. No Entry: As no liability has been created so no Journal entry is recorded in the books of account. As per the Revised Schedule-VI of the Companies Act, the issue of debenture as collateral security is shown as a Long-Term Borrowings under the heading of Non. Currertt Liabilities on the Equity and Liabilities side of the Balance Sheet. In the Notes to Accounts of Long-Term Borrowings, the Loan so taken is shown. And in the Notes to Accounts of Cash and Cash Equivalents, the amount of loan so received (in cash) is shown. ‘

2. By Making Entry: In order to record the issue of debentures as collateral security, the following necessary Journal entries are made in the books of account.

At the time of Issue of Debentures as Collateral Security
Debenture Suspense A/c Dr.
To Debenture A/c
(Debentures issued as collateral security)
In this case, as per the Revised Schedule VI of the Companies Act, Debentures so issued as collateral security will be shown as Long-Term Borrowings under the head of Non-Current Liabilities of the Equity and Liabilities side of the Company’s Balance Sheet. Unlike Method-1, in this method, “Debentures Suspense Account is deducted from the Debentures Account in the Note’s to Accounts of Long-Term Borrowings.

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Question 4.
How is ‘Discount on Issue of Debentures’ treated in the books of accounts? How will you deal with the ‘discount in issue of debentures’ when the debentures are to be redeemed in installments?
Answer:
When the debentures are issued at a price below its par value or face value, then it is said that the debentures are issued at discount. The difference between the issue price and the face value of the debenture is regarded as a capital loss. As per the Revised Schedule VI of the Companies Act, Discount on Issue of Debentures is sown in the Notes to Accounts of Other Non-Current Assets. The final balance is shown on the Assets side of the Company’s Balance Sheet under the main head of Non-Current Assets.

The following are the two methods of writing-off discount on issue of debentures, when debentures are redeemable in installments.

Fixed Installment Method/Equal Installment Method: Under this method, the total amount of discount (loss) is written off in equal installments over the life of the debenture. It is used when debentures are redeemable in lump sum after a specified period of time. The formula for calculating amount of discount written off every year is given by

Fluctuating Installment Method/Variable Installment Method/Propon Method: This method is used when the debentures are redeemed in installments. The discount on issue of debentures is written off in proportion’to the debentures outstanding at the end of each year.

Question 5.
Explain the different terms for the issue of debentures with reference to their redemption.
Answer:
The different terms for the issue of debentures with reference to their redemption can be the combinations of at par, at premium and at discount. Normally, the debentures are not redeemable at-discount. The permutation and the combination of the various terms of issue and redemption of debentures give rise to following six situations:

  1. Issue at Par, Redeemable at Par.
  2. Issue at Premium, Redeemable at Par.
  3. Issue at Discount, Redeemable at Par.
  4. Issue at Par, Redeemable at Premium.
  5. Issue at Premium, Redeemable at Premium.
  6. Issue at Discount Redeemable at Premium.

Issue at Par and Redeemable at Par: When the debentures are issued and are redeemed at their face value, then the following Journal entry is passed:
Bank A/c Dr (with the amount received)
To Debenture Application A/c (with the face value) –
(Debenture Application money received)
Debenture Application A/c Dr
To Debenture A/c
(Application money transferred to Debenture Account)

Issue at Premium and Redeemable at Par: When the debentures are issued at premium and are redeemable at par, then the following Journal entry is passed. As premium is again for a company so it is credited in the Journal entry:
Bank A/c Dr
To DebenJ ire Application A/c
(Debenture Application money received)
Debenture Application A/c Dr
To Debenture A/c To Securities Premium A/c
(Debentures issued at premium and redeemable at par)

Issue at Discount and Redeemable at Par: When the debentures are issued at discount and are redeemable at par, then the following Journal entry is passed. As discount is a loss for a company so it is debited in the Journal entry.
Bank A/e Dr
To Debenture Application A/c
(Debenture Application money received)
Debenture Application A/c Dr
Discount on Issue of Debenture A/c Dr To Debenture A/c
(Debentures issued at discount and redeemable at par)

Issue at Par and Redeemable at Premium: When debentures are issued at par and redeemable at premium, then the following Journal entry is passed. In such case, the company did not suffer any loss at the time of issue but there will be loss at the time of redemption.
Bank A/c Dr
To Debenture Application A/c (Debenture Application money received)
Debenture Application A/c Dr
Loss on Issue of Debenture A/c Dr
To Debenture A/c
To Premium on Redemption of Debenture A/c (Debentures issued at par and redeemable at premium)

Issued at Premium and Redemption at Premium: When the debentures are issued and redeemable at premium, then the following Journal entry is passed.
Bank A/c Dr
To Debenture Application A/c (Debenture Application money received)
Debenture Application A/c Dr
Loss on Issue of Debenture A/c Dr
To Debenture A/c
To Securities Premium A/c
To Premium on Redemption of Debenture A/c (Debentures issued at premium and redeemable at premium)

Issue of Discount and Redemption at Premium: When the debentures are issued at . discount and redeemable at premium, then the following Journal entry is passed:
Bank A/c Dr
To Debenture Application A/c
(Debenture Application money received)
Debenture Application A/c Dr
Loss on Issue of Debenture A/c Dr
To Debenture A/c
To Premium on Redemption of Debenture A/c (Debentures issued at discount and redeemable at premium)

KSEEB Solutions

Question 6.
Differentiate between redemption of debentures out of capital and out of profits.
Answer:
Redemption of Debentures Out of Capital
When debentures are redeemed out of capital and no profits are utilised for redemption, then such redemption is termed as redemption out of capital. In such a situation, no profits are transferred to the Debenture Redemption Reserve.

As per the guideline laid down by Securities and Exchange Board of India (SEBI) and the Section 117C of Company Act of 1956, the creation of DRR is mandatory (DRR). Therefore, it is not possible to redeem debentures purely out of capital, as it reduces the value of assets. The following companies are exempted from the creation of DRR.

Redemption of Debenture Out of Profits :
When debentures are redeemed out of profit then no capital is utilised for redemption. Before redeeming the debentures profits are transferred to DRR from Profit and Loss Appropriation Account. The creation of DRR is mandatory as per the guidelines laid down by Securities and Exchange Board of India (SEBI). SEBI mandates transferring amount‘equal to 50% of debentures issued to DRR before redeeming debentures. In this method, as profits are transferred to the DRR Account, thereby reducing the totAl amount of profits, therefore this method is termed as Redemption of Debentures out of Profits.

In this method, first of all, the required profits are transferred from Statement of Profit and Loss to the DRR Account. The working of which is shown in the Notes to Accounts of Reserves and Surplus (as prescribed in Revised Schedule VI). The final balance (after considering DRR) is shown as the sub-head.

‘Reserves and Surplus’ under the main head of Shareholders’ Funds on the Equity and Liabilities side of the Company’s Balance Sheet. Lastly, when all the debentures are redeemed, then DRR account is closed by transferring its amount to the General Reserve.

Question 7.
Explain the guidelines of SEBI for creating Debenture Redemption Reserve.
Answer:
The following are the main points of SEBl’s guidelines for creation of Debenture Redemption Reserve (DRR).

  • Every company that issues debentures with a maturity of more than 18 months shall create DRR.
  • An amount equal to 50% of debenture issued shall be transferred to DRR before starting redemption of debentures.
  • Creation of DRR is applicable only for Non-Convertible Debentures and for non-convertible part of Partly Convertible Debentures. ’
  • Any withdrawal from DRR is allowed only after 10% of debentures are redeemed.

Thus, as per the SEBI’s guidelines, 50% of the debentures issued should be redeemed out of the profits that are transferred to DRR and the remaining 50% of the debentures issued can be redeemed either out of profits or out of capital. Hence, no company can redeem all the debentures issued purely out of the capital.

As per the SEBI’s guidelines, the following companies are exempted from the creation of

  • Infrastructure companies (i.e. those companies that are engaged in the business of developing, maintaining and operating infrastructure facilities)
  • A Company that issues debentures with a maturity up to 18 months

Question 8.
Describe the steps for creating Sinking Fund for redemption of debentures.
Answer:
The various steps involved in the creation of Sinking Fund for redemption of debentures can be better understood by the help of the example explained below:
A Company issued 10% Debentures of Rs 5,00,000 for 3 years. The investment is expected to earn 6% p.a. The Sinking Fund table shows that 0.31411 invested annually at 6% amount to Rs 1 in 3 years.

Step 1: Calculate the amount of installment to be required every year for investment with the help of the Sinking Fund table. Like in the example Rs 1,57,055 (i.e.0.31411 x 5,00,000) is required every year.

Step 2: The amount of installment calculated in the above step is transferred to the Debenture Redemption Fund (Sinking Fund) by debiting from Profit and Loss Appropriation Account.

Step 3: In the first year, the above installment is invested to y eld amount required for redemption of debenture by debiting Debenture Redemption Fund investment Account.

Step 4: The interest on investment is received on half yearly or annual basis. In the example, the interest of Rs 9,423 is received on annual basis.

Step 5: The total amount of investment, i.e. interest plus installment is invested in the subsequent year. In the example, Rs 1,66,478 (i.e. Rs 1,57,055 + Rs 9,423) is invested in the next year.

Step 6: Repeat the Step 2, 3, 4 for each subsequent years up to the end of the life of the debenture. In the year of redemption, the installment (i.e. the last installment) will be debited to the Profit and Loss Appropriation Account but will not be invested.

Step 7: In the year of redemption, the investment is sold off.

Step 8: The profit (loss) on the sale of the investment is transferred by debiting (crediting) Debenture Redemption Fund Investment Account to the Debenture Redemption Fund Account.

Step 9: The payment to the debenture holder is made. ‘

Step 10: The balance of Debenture Redemption Fund Account if any, is transferred to the General Reserve.

KSEEB Solutions

Question 9.
Can a company purchase its own debentures in the open market? Explain.
Answer:
Yes, a company can purchase its own debentures provided it is authorised by its Article of Association. As per the Company Act, if a company is authorised by its Article of Association, only then it may purchase its own debentures from the open market. The main purposes of such purchase are as follows:

  • For immediate cancellation of debenture liability, if the interest rate omits debenture is higher than the market rate of interest.
  • A company may also purchase its own debentures with the motive of investment and sell them at higher price in future and thereby earn profit.

A company may purchase its own debentures at discount or at premium for cancellation.

If Debentures are purchased at Discount for Cancellation
When the company purchases its own debentures at discount for cancellation, then the following Journal entries are recorded:

Own Debentures A/c
To Bank A/c
(Being own debentures purchased)
Debentures A/c Dr
To Own Debentures A/c
To Profit on Cancellation of Own Debentures A/c
(Being own debentures cancelled)
Profit on Cancellation of Own Debentures A/c Dr To Capital Reserve A/c
(Profit on Cancellation of Own Debentures transferred to Capital Reserve)
If Debentures are purchased at Premium for Cancellation
Own Debentures A/c Dr
To Bank A/c
(Being own debentures purchased)
Debentures A/c Dr
Loss on Redemption of Debentures A/c
To Own Debentures A/c
(Being own Debentures cancelled)

Question 10.
What is meant by conversion of debenture? Describe the method of such a conversion.
Answer:
When a debenture holder can conveit his/her debentures into shares or new debentures after the expiry of a specified period of time, then it is known as redemption of debentures by conversion. As the company does not need to pay any. funds for the redemption, so there is no need to maintain Debenture Redemption Reserve (DRR). The new shares or debentures may be issued at par, premium or at discount.

If a debenture holder exercises the conversion option, then the issue price of shares must be equal to or less than the amount actually received from debentures.

Accounting Treatment
For amount due to debenture holders
Debenture A/c Dr
To Debenture holders A/c
(Debentures redeemed)
For discharging liability to the debenture holders .
Debenture holders A/c Dr
To Shares/Debentures (New) A/c
(Debenture holder amount discharged)

KSEEB Solutions

2nd PUC Accountancy Issue and Redemption of Debentures Numerical Questions and Answers

Question 1.
G. Ltd. issued 75,00,000,6% debentures of ₹ 50 each at par payable ₹ 15 on application and ₹ 35 on allotment, redeemable at par after 7 years from the date of issue of debentures. Record necessary entries in the books of Company.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 3

Question 2.
Y Ltd. issued 2,000,6% debentures of ₹ 100 each payable as follows: ₹ 25 on application; ₹ 50 on allotment and ₹ 25 on first and final call.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 4
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 5

Question 3.
A. Ltd. issued 10,000, 10% debentures of ₹ 100 each at a premium of 5 % payable as .follows:
₹ 10 on Application;
₹ 20 along with premium on allotment and balance on first and final call.
Record necessary Journal Entries.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 6
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 7

Question 4.
A. Ltd. issued 90,00,000,9% debenture of ₹ 50 each at a discount of 8%, redeemable at par any time after 9 years Record necessary entries in the books of A. Ltd.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 8

KSEEB Solutions

Question 5.
A. Ltd. issued 4,000,9% debentures of ₹ 100 each on the following terms:
₹ 20 on Application;
₹ 20 on Allotment;
₹ 30 on First call; and
₹ 30 on Final call
The public applied for 4,800 debentures. Applications for 3,600 debentures were accepted in full. Applications for 800 Debentures were allotted 400 debentures and applications for 400 Debentures were rejected.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 9
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 10
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 11

Question 6.
T. Ltd. offered 2,00,000, 8% debenture of ₹ 500 each on June 30, 2014 at a premium of 10% payable as ₹ 200 on application (including premium) and balance on allotment, redeemable at par after 8 years. But appliication are received for 3,00,000 debentures and the allotment is made on pro-rata basis. All the money due on application and allotment is received. Record necessary entries regarding issue of debentures.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 12

KSEEB Solutions

Question 7.
X. Ltd. invites application for the issue of 10,000,14% debentures of ₹ 100 each payable as to ₹ 20 on application, ₹ 60 on allotment and the balance on call. The Company receives applications for 13,500 debentures, out of which applications for 8,000 debentures are allotted in full, applications for 5000 debentures were allotted 40% of received application, and the remaining applications were rejected. The Surplus money on partially allotted applications is utilised towards allotment. All the sums due are duly received.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 13
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 14

Question 8.
R. Ltd. offered 20,00,000,10% debentures of ₹ 200 each at a discount of 7% redeemable at premium of 8% after 9 years Record necessary entries in the books of R. Ltd. ‘
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 15

Question 9.
M. Ltd. took over assets of ₹ 9,00,00,000 and liabilities of ₹ 70,00,000 of S. Ltd. and issued 8% debentures of ₹ 100 each. Record necessary entries in the books of M. Ltd.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 16

KSEEB Solutions

Question 10.
B. Ltd. purchased assets of the book value of ₹ 4,00,000 and took over the liability of ₹ 50,000 from Mohan Bros. It was agreed that the purchase consideration, settled at ₹ 3,80,000, be paid by issuing debentures of ₹ 100 each. What Journal entries will be made in the following three cases, if debentures are issued: (a) at par; (b) at discount; (c) at premium of 10%. It was agreed that any fraction of debentures be paid in cash. (Note: Goodwill ₹ 30,000)
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 17
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 18
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 19

Question 11.
X. Ltd. purchased a Machinery from Y Ltd. at an agreed purchase consideration of ₹ 4,40,000 to be satisfied by the issue of 12% debentures of ₹ 100 each at a premium of ₹ 10 per debenture. Journalise the transactions.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 20

KSEEB Solutions

Question 12.
X. Ltd. issued 15,000,10% debentures of ₹ 100 each. Give journal entries and present it in the balance sheet in each of the following cases?
(i) The debentures are issued at a premium of 10%;
(ii) The debentures are issued at a discount of 5%;
(iii) The debentures are issued as a collateral security to bank against a loan of ₹ 12,00,000; and
(iv) The debentures are issued to a supplier of machinery costing ₹ 13,50,000
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 21
Note To Account
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 22
(ii)
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 23
(iii) No entry will be passed for issuing debentures as a collateral securities.
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 24
(iv) Journal Entries
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 25
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 26

KSEEB Solutions

Question 13.
Journalise the following:
(i) A debenture issued at ₹ 95, repayable at ₹ 100;
(ii) A debenture issued at ₹ 95, repayable at ₹ 105; and
(iii) A debenture issued at ₹ 100, repayable at ₹ 105;
The face value of debenture in each of the above cases is ₹ 100.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 27
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 28

Question 14.
A, Ltd. issued 50,00,000, 8% debentures of ₹ 100 at a discount of 6% on April 01, 2009, redeemable at premium of 4% by draw of lots as under: 20,00,000 debentures on March, 2011 10,00,000 debentures on March, 2013 20,00,000 debentures on March, 2014.
Compute the amount of discount to be written-off in each year till debentures are paid. Also prepare discount/loss on issue of debenture account.
Answer:
Loss on issue of debenture = 6% (discount on issue) + 4% (premium on redemption) =10%
= 50,000 x 100 x \(\frac{10}{100}=\) = 5,00,00,000
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 29
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 30

Question 15.
A company issues the following debentures: 10,000 2% debentures of ₹ 100 each at par but redeemable at premium of 5% after 5 years; 10,000,12% debentures of ₹ 100 each at a discount of 10% but redeemable at par after 5 years; 5,000,12% debentures of ₹ 1000 each at a premium of 5% but redeemable at par after 5 years; 1,000, 12% debentures of ₹ 100 each issued to a supplier of machinery costing ₹ 95,000. The debentures are repayable after 5 years; and. 300, 12% debentures of Rs 100 each as a collateral security to a bank which has advanced a loan of Rs 25,000 to the company for a period of 5 years Pass the journal entries to record the: (a) issue of debentures; and (H) repayment of debentures after the given period.
In the books of Journal
(a) Issue of Debentures
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 31
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 32
b) Repayment of Debentures
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 33
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 34

Question 16.
A company issued debentures of the face value of ₹ 5,00,000 at a discount of 6% on January 01, 2011. These debentures are redeemable by annual drawings of ₹ 1,00,000 made on December 31 each year. The directors decided to write-off discount based on the debentures outstanding each year. Calculate the amount of discount to be written- off each year. Give journal entries also.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 35
Amount of discount of issue of Debenture = 50,000 x 100 x \(\frac{6}{100}=\)= 30,000.

2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 36

KSEEB Solutions

Question 17.
A company issued 10% debentures of the face value of ₹ 1,20,000 at a discount of 6% on April 01, 2011. The debentures are payable by annual drawings of ₹ 40,000 commencing from the end of third year.
How will you deal with discount on debentures?
Show the discount on debentures account in the company ledger for the period of debentures. Assume accounts are closed on March 31 every year.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 37
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 38
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 39
(i) Working Note:
Ammount of Discount on Issue of Debenture = 1,20,000 x \(\frac{6}{100}=\) = 7,200
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 40

Question 18.
B. Ltd. issued debentures at 94% for ₹ 4,00,000 on April 01, 2011, repayable five equal drawings of ₹ 80,000 each. The company prepares its final accounts on March 31 every year.
Indicate the amount of discount to be written-off every accounting year that the company decides to write-off the debentures discount during the life of debentures. (Amount to be Written-off: 2011 ₹ 6,000; 2012 ₹ 6,800; 2013 ₹ 5,200; 2014 ₹ 3,600; 2015 ₹ 2,000; 2011 ₹ 400.
Answer:
Debenture issued = 4,00,000 @ 94%
Discount on Issue = 6%
Amount on discount on Issue of Debenture = 4,00,000 x \(\frac{6%}{100}=\) = 2,000
Amount of discount to written off every year In 2000 = ₹ 6,000
In 2001 = 2,000 + 4,800 = ₹ 6,800
In 2002 = 1,600 + 3,600 = ₹ 5,200
In 2003 = 1,200+ 2,400 = ₹ 3,600
In 2004 = 800 + 1,200 = ₹ 2,000
In 2005 = ₹ 400

KSEEB Solutions

Question 19.
B. Ltd. issued 1,000,12% debentures of ₹ 100 each on April 01, 2014 at a discount of 5% redeemable at a premium of 10%. Give journal entries relating to the issue of debentures and debentures interest for the Period ending March 31, 2015 assuming that interest is paid half-yearly on September 30 and March 31 and tax deducted at source is 10%.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 41
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 42

Question 20.
What journal entries will be made in the cased when company redeems debentures at the expiry of period by serving the notice:
(a) when debentures were issued at par with a condition to redeem them at premium;
(b) when debentures were issued at premium with a condition to redeem at part and
(c) when debentures were issued at discount with a condition to redeem them at premium?
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 43
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 44

Question 21.
On January 01, 2012, X. Ltd. issues 5,000, 8% debentures of ₹ 100 each repayable at par at the end of three years. It has been decided to set up a cumulative sinking, fund for the purpose of their redemption. The investments are expected to realized 4% net. The Sinking Fund Table shows that ₹ 0.320348 amounts to one rupee: @ 4% per annum in three years. On December 31, 2014 the balance at Bank was ₹ 2,42,360 and the investments realised ₹ 3,25,000. The debentures were paid off. Give journal entries and show ledger account.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 45
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 46
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 47
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 48
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 49
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 50
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 51

KSEEB Solutions

Question 22.
On April 01, 2011 a company issued 15% debentures of ₹ 10,00,000 at par: The debentures were redeemable at par after three years from the date of Issue. A sinking fund was set up to raise funds for redemption of debentures: The amount – for the purpose was interested in 6% Government securities of ₹ 100 each available at par. The sinking fund table shows that if investments earn 6% per annum, to get Re. 1 at the end of 3 years, one has to invest ₹ 0.31411 every year together with interest that will be earned. On March 31, 2014, all the Government securities were sold at a total loss of ₹ 6,000 and the debentures were redeemed at par. Prepare Debentures Account Sinking Find Account, Sinking Fund Investment. Account and Interest on Sinking Fund Investment Company crosses its books of accounts every year on March 31.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 52
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 53
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 54

Question 23.
On April 01, 2013 the following balances appeared in the books of Z Ltd.
6%. Debentures ₹  1,00,000
Debentures Redemption Reserve Fund ₹  80,000 .
D.R. Reserve Fund Investments ₹  80,000
The investments consisted of 4% Government securities of the face value of ₹ 90,000.
The annual installment was ₹ 16,400. On March 31, 2014, the balance at Bank was ₹ 26,000 (after receipt of interest on D.R. Reserve Fund Investment). Investments were realised at 92% and the debentures were redeemed. The interest for the year had already been paid. Show the ledger accounts affecting redemption.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 55
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 56

KSEEB Solutions

Question 24.
The following balance appeared ¡n the books of A. fAd; On April 01, 2014.
12% Debentures ₹ 4,00,000.
Debentures Redemption Fund ₹ 3,60,600
Debentures Redemption Fund Investment ₹ 3,60,000
Securities premium ₹ 30,000
Bank Balance ₹ 1,00,000
On April 01, 2014, the company redeemed all the debentures at 105 per cent out of funds raised by selling all the investments at ₹ 3,48,000. Prepare the necessary ledger
accounts.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 57
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 58
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 59

Question 25.
The following balances appeared in the books of Z. Ltd. on April 01, 2013
12% Debentures ₹ 1,50,000
Debentures Redemption Fund ₹ 1,25,000
Debentures Redemption Fund Investment ₹ 1,25,000
(Represented by  1,47,500,3% Govt. Securities ₹ 1,25,000
The annual instalment added to the fund is ₹ 20,575. On March 31, 2014, the Bank balance after the receipt of Interest on the investment was ₹ 39,100. On that date, all the investments were sold at 83 per cent and the debentures were duly redeemed. Show the necessary ledger accounts for the year 2013-14 (Loss ₹ 2,575).
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 60
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 61

Question 26.
What entries for the redemption of debentures will be done when :
(a) debentures are redeemed by annual drawings out of profits;
(b) debentures are redeemed by drawing a lot out of capital; and
(c) debentures are redeemed by purchasing them in the open market when sinking fund for the redemption of debentures is not maintained –
(i) when out of profit, and
(ii) when out of capital?
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 62
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 63

KSEEB Solutions

Question 27.
A Ltd Company issued ₹ 5,00,000 debentures at a discount of 5% repayable at par by annual drawings of ₹ 1,00,000. Make the necessary ledger accounts in the books of the Company for the first year.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 64

Question 28.
X. Ltd. issued 5,000, 15% debentures of ₹ 100 each January 01, 2014 at a discount of 10%, redeemable at a premium of 10% in equal annual drawings in 4 years out of capital.
Give journal entries both at the time of issue and redemption of debentures. (Ignore the treatment of loss on issue of debentures and interest).
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 65
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 66
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 67

Question 29.
Z. Ltd. Issued 2,000, 14% debentures of ₹ 100 each on January 01, 2010 at a discount of 10%, redeemable at a premium of 10% in equal annual drawings in 4 years out of profits.
fJive journal entries both at the time of issue and redemption of debentures. (Ignore the treatment of loss on issue of debentures and interest).
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 68
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 69
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 70

KSEEB Solutions

Question 30.
A Ltd purchase ₹ Own debentures on the face value of ₹ 2,00,000 from the open market for immediate cancellation at ₹ 92. Record the journal entries.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 71

Question 31.
X. Ltd. redeemed 1,000, 12% debentures of ₹ 50 each by converting them into 15% New Debentures of ₹ 10. each. Journalise.
Answer:
2nd PUC Accountancy Question Bank Chapter 2 Issue and Redemption of Debentures - 72

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1st PUC Computer Science Question Bank Chapter 1 Overview of Computers

You can Download Chapter 1 Overview of Computers Questions and Answers, Notes, 1st PUC Computer Science Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 1st PUC Computer Science Question Bank Chapter 1 Overview of Computers

1st PUC Computer Science Overview of Computers One Mark Questions and Answers

Question 1.
What is a computer?
Answer:
Computer is defined as an electronic machine used for storing, processing and analysing data or information as per a set of instructions given to it by humans

Question 2.
What is computer hardware?
Answer:
The physical components of a computer are called the hardware.

Question 3.
Define program.
Answer:
A computer program is a sequence of logical actions or instructions.

Question 4.
Define programming.
Answer:
A program must contain instructions in a precise order. To organize and write these instructions in a logical order is called Programming.

Question 5.
Define software.
Answer:
A group of programs that are put into a computer to operate and control its activities are called the “software”.

KSEEB Solutions

Question 6.
How is the input unit useful to the computer?
Answer:
The user enters the program and data into the computer through the input unit.

Question 7.
that is the main function of the CPU?
Answer:
The main function of the CPU is to translate the program instructions and carry out those instructions in a sequence.

Question 8.
What is the function of ALU?
Answer:
ALU unit performs all the arithmetic calculations and logical operations involved in the program

Question 9.
What is the task of the output unit?
Answer:
The output unit receives information from the CPU and presents it to the user in the desired form.

Question 10.
Define computer memory.
Answer:
The working place in the computer where all the data and instructions are stored is called the memory.

Question 11.
What are the registers?
Answer:
It is a temporary storage location of the CPU.

KSEEB Solutions

Question 12.
Name any two output devices.
Answer:
Two output devices are Visual Display Unit (VDU) and Printer.

Question 13.
Name the oldest computing tool.
Answer:
Abacus is the oldest computing tool.

Question 14.
What is the contribution of Prof. John Napier in the field of computers?
Answer:
John Napier invented a calculating device which is a set of 9 marked rods called “Napier

Question 15.
Name the device invented by William Oughtrcd to do computations.
Answer:
The device invented by William Oughtred for computations is the “slide rule”.

Question 16.
Who is the inventor of Pascaline?
Answer:
A French philosopher Blaise Pascal invented “Pascaline” the first mechanical calculator.

Question 17.
Who invented Jacquard loom?
Answer:
Joseph Mary Jacquard invented Jacquard loom.

Question 18.
Who is the father of the computer?
Answer:
Charles Babbage is known as the father of the computer.

Question 19.
Who invented the difference engine?
Answer:
Charles Babbage invented the difference engine.

Question 20.
Who is the first computer programmer?
Answer:
Lady Ada Lovelace was the first computer programmer.

Question 21.
Where was Herman Hollerith machine was used?
Answer:
Herman Hollerith machine was used in a faster way to process the US census in a faster way in the year 1890.

Question 22.
What is the earlier name of IBM?
Answer:
Tabulating Machine Company.

KSEEB Solutions

Question 23.
Expand IBM.
Answer:
International Business Machine

Question 24.
Expand the term ENIAC.
Answer:
Electronic Numerical Integrator and Calculator.

Question 25.
Expand the term EDVAC.
Answer:
Electronic Discrete Variable Automatic Computer.

Question 26.
Who developed the stored program concept?
Answer:
John von Neumann developed the stored program concept.

Question 27.
Expand the term UNIVAC.
Answer:
UNIVersal Automatic Computer.

Question 28.
Name the main electronic component used in I generation computer systems.
Answer:
“Vacuum Tube” was the main electronic component used in the first generation computer system.

Question 29.
Name the language used in the first generation of computers.
Answer:
Machine language was used in the first generation of computers.

Question 30.
What is the processing speed of first-generation computers?
Answer:
The processing speed of first-generation computers was in milliseconds.

Question 31.
Name the main electronic component used in II generation computer, systems.
Answer:
The main electronic component of second-generation computer systems was a transistor.

Question 32.
What is the processing speed of Second-generation computers?

KSEEB Solutions
Answer:
The processing speed of Second-generation computers was in microseconds.

Question 33.
Expand the terms COBOL and FORTRAN.
Answer:
Common Business Oriented Language and Formula Translation.

Question 34.
Name the main electronic component used in III generation computer systems.
Answer:
Integrated Circuit chips were the main electronic components used in the third generation computers.

Question 35.
What is the processing speed of third-generation computers?
Answer:
Nanoseconds are the processing speed of third-generation computers.

Question 36.
Name the main electronic component used in IV generation computer systems.
Answer:
LSICs and VLSICs are the electronic components used in IV generation computer systems.

Question 37.
What is the processing speed of fourth-generation computers?
Answer:
Pico seconds is the processing speed of fourth generation computers.

Question 38.
What is a microprocessor?
Answer:
The CPU of a computer system in which thousands of integrated circuits are built onto a single silicon chip is called a microprocessor.

Question 39.
What is the working principle of an analog computer?
Answer:
The working principle of an analog computer is by measuring rather than counting.

KSEEB Solutions

Question 40.
What is the working principle of a digital computer?
Answer:
The working principle of a digital computer is counting.

Question 41.
What are the workstation computers?
Answer:
High-performance, single-user computers typically used for graphics, CAD, software development and scientific applications.

Question 42.
Expand the term PDA.
Answer:
Personal Digital Assistants.

Question 43.
What is a tablet computer?
Answer:
It is a general-purpose computer contained in a single panel in which a touch screen is used as the input device.

Question 44.
What do you mean by a wearable computer?
Answer:
The wearable computing devices are body-worn computers such as wrist-attached devices that compute distance and heart rate etc.,

1st PUC Computer Science Overview of Computers Two Marks Questions and Answers

Question 1.
What are the capabilities of a computer?
Answer:

  • Computers can perform complex and repetitive calculations rapidly and accurately.
  • Computers can store large amounts of data and information for subsequent manipulations.

Question 2.
Mention the main characteristics of a computer.
Answer:
The main characteristics of a computer are speed, storage capacity, accuracy, and diligence.

Question 3.
What are the essential components of a computer?
Answer:
Input units, CPU and output units are the essential components of a computer.

Question 4.
Write the important units of CPU.
Answer:
The important units of CPU are ALU, Control unit, Registers/Memory unit.

Question 5.
How the Leibniz invented machine is different from Pascals invented Pascaline?
Answer:
The Gottfried Wilhelm Leibniz invented the machine had addition, subtraction, multiplication, and division calculators whereas Pascaline had only an addition calculator.

Question 6.
What is the stored program concept? Who developed it?
Answer:
A stored-program concept is one in which program and data are stored in the main memory and then the processor fetches instructions and executes them, one after another. It was developed by von Neumann.

KSEEB Solutions

Question 7.
Write the names of any two First generation computers.
Answer:
ENIAC, EDSAC

Question 8.
Mention any two disadvantages of the first generation computers.
Answer:
Too big in size and very slow in speed.

Question 9.
Write any two important features of the second-generation system.
Answer:

  • Use of symbolic or assembly language.
  • Introduction of early versions of COBOL and FORTRAN which were high-level languages.

Question 10.
Name any two computers developed in the second generation.
Answer:
IBM 70, Honeywell 400

Question 11.
Mention the two computer languages of the second generation computers.
Answer:
COBOL and FORTRAN

Question 12.
What are the two important features of the third generation system?
Answer:

  • The development of the integrated circuits.
  • The users interacted with computers through keyboards and monitors and interfaced with an operating system.

Question 13.
Name any two computers developed in the third generation system.
Answer:
IBM 360, PDP 8 Series.

KSEEB Solutions

Question 14.
Write any two important features of fourth generation computers.
Answer:

  • The microprocessor was introduced in the fourth generation computers,
  • They could be linked together to form networks.

Question 15.
Give the name of any two latest processors available in the market.
Answer:
Intel core i9 5 generation and AMD’s FX processors

Question 16.
What is the main difference between microcomputer and minicomputer?
Answer:
The main difference is microcomputers are single-user computers and mini-computers are multi-user computers.

Question 17.
How mainframe computers are different from supercomputers?
Answer:
Mainframe computers are used in business process applications and supercomputers are used in scientific applications and calculations.

Question 18.
Give the application of hybrid computers.
Answer:
Hybrid computers are used in Process control (industries) and Robotics.

Question 19.
How computers are useful in education? Mention any two uses.
Answer:
Using Computer Aided Learning (CAL) & Computer Based Training

  • Students can readily learn and get new skills at their own convenient speed.
  • Students can get timely and high-quality training on demand.
  • Students can solve different kinds of problems quickly and efficiently, by using computers.

Question 20.
Give the application of computers in industries.
Answer:

  • Computers are used to control machines and the continuous running of machinery.
  • A robot is an automatic programmable machine and can be used in hundreds of applications like assembling and spray painting of cars etc.

Question 21.
What are the advantages of computers in business?
Answer:

  • Office paperwork is reduced by using computers.
  • Many businesses use websites to sell their products and contact their customers.
  • Computerized banking saves time and is convenient for the customer.

Question 22.
Explain the uses of computers in the entertainment and multimedia field.
Answer:

  • Nowadays, the computer can be used to watch television programs on the Internet. People can also watch movies, listen to music and play games on the computer.
  • Multimedia is used to develop special effects in movies and animations.

Question 23.
What are the uses of computers in the field of science and technology?
Answer:

  • A flight simulation can be used to train pilots and how to deal with critical situations.
  • Computer-based weather forecasting collects accurate data from many devices all around the world to predict more reliable weather forecasts.

1st PUC Computer Science Overview of Computers Five Marks Questions and Answers

Question 1.
Briefly explain the characteristics of a computer.
Answer:
1. Speed:
Computers are fast in doing calculations. The speed of the computer is measured in terms of No. of million instructions per second (MIPS).

2. Storage Capacity:
Computers come with a very large amount of memory space. They can hold a lot of data. Computers can extract a particular piece of information from a large amount of available data within a very short time.

3. Diligence:
After doing work for some time, humans become tired but computers do not become tired. They work continuously. In fact, Computers which control telephone exchanges, are never shut down. This is called diligence.

4. Accuracy:
The results that the computers produce are accurately provided that the input data and programs are reliable.

Question 2.
Write a short note on the history of computers.
Answer:
1. Abacus:
The abacus was an early tool for mathematical computations. A skilled abacus user can work on addition and subtraction problems at the speed of a calculator. The abacus is still in use today.

2. Napier Bones:
John Napier invented logarithms, where the logarithm values were carved on ivory sticks which are now called Napier’s Bones.

3. Slide Rule:
Napier bones were modified by Edmund Guntur in the year 1620. It consists of a ruler and a sliding piece both marked with logarithmic values. It was further modified by William Oughtred.

4. Pascal’s calculating machine:
The first successful mechanical calculator was constructed by Pascal in 1642.

5. Leibnitz’s Machine:
It is the modified form of Pascal’s machine.

6. Charles Babbage’s Machine:
In 1833, Charles Babbage invented Charles Babbage Machine. He is known as the “Father of Computers”.

7. Census Machine:
This machine was devised by Dr. Hermann Hollerith for tabulating the 1980 US. Census.

8. Jacquard Loom:
A weaving machine invented by Joseph Marie Jacquard in the beginning of the 19th century.

KSEEB Solutions

Question 3.
Draw the schematic block diagram of a computer showing its essential components. Discuss the function of each component.
Answer:
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 1
1. Input Unit:
It is a device through which we enter the program and data into the computer. The data is then stored and processed with the help of programs.

2. Central Processing Unit:
The Central Processing Unit (CPU) consists of three units namely, the control unit, the arithmetic, and the logic unit and the memory unit.

3. Control Unit:
This unit is considered to be the nervous system of the computer. It controls all the arithmetic operations to be performed. It also coordinates the functions of all the hardware units of the computer.

4. Arithmetic and Logic Unit (ALU):
This unit performs all the arithmetic calculations and logical operations involved in the program.

5. Memory Unit:
The function of this unit is to store the data and the set of instructions given by the programmer. The computation results are also stored in the memory and they may be used for subsequent computations or sent to the output unit.

6. Output Devices:
Output devices receive information from the CPU and present it to the user in the desired form. Some common output devices are a visual display unit (VDU), Printer, etc.

Question 4.
Write a short note on the first generation of computers.
Answer:
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 2

  1. The first computers used vacuum tubes for electronic circuitry and magnetic drums for memory.
  2. They were very expensive to operate and the power consumption was high, generated a lot of heat, which was often the cause of malfunctions.
  3. First-generation computers were communicated through machine language to perform operations, and they could only solve one problem at a time.
  4. Input was based on punched cards and paper tape, and output was displayed on printouts.
  5. UNIVAC and ENIAC computers are examples of first-generation computing devices.

Advantages:

  • For Calculation and computation.
  • Payroll Processing
  • Record keeping

Disadvantages:

  • Required a huge space
  • Too big in size
  • Very slow in speed
  • Low level of accuracy and reliability
  • Low storage capacity
  • High power consumption
  • High heat generation
  • Used machine language
  • Difficult to maintain
  • Fault finding was very difficult

Question 5.
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 3

Explain second generation computers in detail.
Answer:
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 4

  1. In the second generation computers, symbolic or assembly languages were used.
  2. High-level programming languages were also in use at this time, such as early versions of COBOL and FORTRAN.
  3. The memory storage used was magnetic core technology.
  4. Second-generation computers still relied on punched cards for input and printouts for output.

Advantages:

  • Smaller in size
  • Better speed
  • Low power consumption
  • No heat was generated.
  • Better storage capacity
  • More reliability
  • Compact Design
  • Faster than I Generation Computers.

Disadvantages:

  • Needed Air conditioning environment
  • Constant maintenance needed.
  • No operating system.

Question 6.

Model

Manufacturer

IBM 70,1400,1600 IBM
Honeywell 400,800 Honeywell
UNIVAC III, 5590, 1107 UNIVAC

Write a short note on the third generation computers.
Answer:
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 5

  1. The development of the integrated circuit was made used in third-generation computers. Transistors were miniaturized and were placed on silicon chips, called semiconductors.
  2. The processing speed and efficiency of computers increased.
  3. Keyboards and monitors were used as input and output devices.
  4. The computer system had an operating system and helped to run multiple applications simultaneously. Computers gained a lot of popularity because of small size and low cost.

Advantages:

  • Better than first and second-generation computers
  • Used high level language
  • Size got reduced further
  • Speed got increased
  • Much better performance
  • Much more reliability

Disadvantages:

  • Initial problem with Manufactures.

Question 7.

Models

Manufacturer

IBM 360, 370 Series IBM
PDP 8 Series Digital Equipment
Spectra 70 Series RCA
UNIVAC 1108,9000 UNIVAC

Explain fourth generation computers in detail.
Answer:
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 6

  1. The microprocessor was used in the fourth generation computers, as thousands of integrated circuits were built onto a single silicon chip.
  2. The Intel 4004 chip, developed in 1971, located all the components of the computer – from the central processing unit and memory to input/output controls – on a single chip.
  3. In 1981 IBM introduced its first computer for the home user, and in 1984 Apple introduced the Macintosh.
  4. Network technology was introduced at this time. Fourth generation computers also saw the development of GUIs, the mouse and handheld devices.

Advantages

  • Speed and Reliability are more
  • Computer occupies every walks of life.
  • More superior to earlier computers.
  • Computer-aided Design introduced (CAD)
  • LAN (Local Area Network) and WAN (Wide area network) got introduced

Question 8.

Models

Manufacturer

Apple Series APPLE
M 68000 Motorola
8086, Z 8000 Intel
DEC 10, STAR 1000 Digital Equipment
3033 IBM

Explain the classification of computers based on size, speed, and performance.
Answer:
Micro Computers:
Computers using Microprocessors are called Micro Computers. This is the smallest general-purpose processing system. These computers are designed for use by a single person at a time.

  • They brought revolution in the history of computers.
  • They are also known as Personal Computers.
  • They are cheap and user-friendly.
  • The main components are Monitor, CPU, Keyboard, Mouse, Speakers, Modem and Printer.
  • They are used as desktops either in offices or even homes.
  • Their operation can be easily learned by anyone having some basic logical aptitude.
  • Children enjoy playing games & watching movies on these computers.
  • The most popular micro computer’s processing chip manufacturing company is Intel.

Mini Computers:
These are medium-sized computers that are costlier but powerful than a microcomputer. A mini-computer is usually designed to serve more than one user simultaneously. These computers need less power and less cooling arrangement. Up to 8 users can use the system simultaneously, all of them running their own programs.

  • They have less memory & storage capacity than mainframe computers.
  • Only a limited range of softwares can be used by them.
  • The end users can directly operate on them.
  • They are used for data processing

Super Computers:
The supercomputer is the largest, fastest and most expensive mainframe computer. Their computing speed is 10 times faster than any other type of computer. These computers are capable of executing more than 10,000 million instructions per second and have storage capacities of millions of bits per chip.

  • They are huge computers installed in space centres, nuclear power stations, etc.
  • They are used for performing complex mathematical calculations.
  • Only scientists and mathematicians can operate them.
  • They are having huge memories & tremendous processing speed.
  • They are used in the fields of electronics, petroleum engineering, weather forecasting, structural analysis, chemistry, medicine, and physics.

Question 9.
Explain the use of computers in the field of business.
Answer.
All business firms do certain business tasks on a daily basis like generating customer bills, studying sales of various products at different locations, etc., using computers. There are many departments like sales, purchase, finance, etc., is big business firms. These departments are involved in different business tasks which are large in volume and huge storage space is required and computers are used in such places.
1. Marketing:
Marketing applications provide information about the products, their distribution, advertising and selling activities.

2. Stock Exchanges:
The stock market uses a computerized system that makes it possible for stockbrokers and customers to do all their trading electronically. Brokers connect to stock exchanges using the internet and do the buying and selling of shares online. Money transfer is done electronically.

3. Banks:
Computerized banking saves time for the customer. Cheques are read by MICR (Magnetic Ink Character Reader, a device used to allow the data on cheques to be read by machines). Banks use computers to maintain their customer’s accounts and their transaction details. Customers can also use internet banking to transfer money. Money can be withdrawn from any ATM’s any time.

4. Departmental Stores:
At departmental stores, cashiers enter sales data by waving a bar code scanner. Bar codes are read by bar code readers that translate the bar code symbols into digital forms. The price of a particular item is set with the store’s computer and appears on the computer and billing is done automatically. The report of purchases, sales and stock are generated using computers. Security cameras are used and continuous recording using DVR is widely used in departmental stores and other locations to monitor home or business operations to ensures security and safety.

5. E-Commerce:
E-commerce (electronic commerce) is the buying, selling, and exchanging of products, services, and information via computer network/internet. It promotes online buying and selling of goods and services. A buyer can buy products using a computer connected to the internet sitting anywhere in the world at any time of the day.

KSEEB Solutions

Question 10.
Write a short note on the different types of latest personal computers.
Answer:
The personal computer (PC) means “a computer designed for general use by a single person”. PCs were first known as microcomputers.
1. Workstation:
A workstation is simply a desktop computer that has a more powerful processor, additional memory and enhanced capabilities for performing a special group of tasks, such as 3D Graphics or game development.

2. Desktop computer:
A PC that set up in a permanent location and is not movable is called desktop computer. Most desktops offer more processing power, speed, and storage for less cost but the size is relatively big.

3. Laptop:
Also called notebooks, laptops are portable computers that integrate the display, keyboard, a pointing device or trackball, processor, memory and hard drive all in a battery-operated package slightly larger than an average hardcover book.

4. Netbook:
Netbooks are ultra-portable computers that are even smaller than laptops. They are cheaper than a laptop but internal components are less powerful than those in regular laptops.

5. PDA:
Personal Digital Assistants (PDAs) are tightly integrated computers that often use flash memory instead of a hard drive for storage. These computers usually do not have keyboards but rely on touch screen technology for user input. PDAs are typically smaller, very lightweight with a reasonable battery life. A slightly larger and heavier version of the PDA is the handheld computer.

6. Server:
A server computer is designed to provide services to other computers over Servers usually have powerful processors, lots of memory space and large hard drives are costlier compared to any other type of personal computers.

7. Wearable Computer:
The latest trend in computing is wearable computers. Most common computer applications (e-mail, database, multimedia, calendar/scheduler) are integrated into watches, cell phones, and even clothing.

Question 11.
Explain generations of computer in detail.
Answer:
First-generation computers
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 7
The first computers used vacuum tubes for electronic circuitry and magnetic drums for memory. They were very expensive to operate their electricity consumption was high and they generated a lot of heat, which was often the cause of malfunctions.
First-generation computers were communicated through machine language to perform operations, and they could only solve one problem at a time.
Input was based on punched cards and paper tape, and output was displayed on printouts. UNIVAC and ENIAC computers are examples of first-generation computing devices.
Advantages:

  • For Calculation and computation.
  • Payroll Processing
  • Record keeping

Disadvantages:

  • Required a huge space
  • Too big in size
  • Very slow in speed
  • Low level of accuracy and reliability
  • Low storage capacity
  • High power consumption
  • High heat generation
  • Used machine language
  • Difficult to maintain
  • Fault finding was very difficult

Second Generation Computers1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 8

1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 9

  1. In second-generation computers symbolic or assembly languages were used.
  2. High-level programming languages were also in use at this time, such as the early versions of COBOL and FORTRAN.
  3. The memory storage used magnetic core technology.
  4. Second-generation computers still relied on punched cards for input and printouts for output.

Advantages:

  • Smaller in size
  • Better speed
  • Low power consumption
  • No heat was generated.
  • Better storage capacity
  • More reliability
  • Compact Design
  • Faster than I Generation Computers.

Disadvantages:

  • Needed Air conditioning environment
  • Constant maintenance needed.
  • No operating system.

 

Model Manufacturer
IBM 70, 1400, 1600 IBM
Honeywell 400,800 Honeywell
UNIVAC 111,5590, 1107 UNIVAC

Third Generation Computers
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 10

  1. The development of the integrated circuit was made use of in the third generation of computers.
  2. Transistors were miniaturized and were placed on silicon chips, called semiconductors.
  3. The processing speed and efficiency of computers increased.
  4. Keyboards and monitors were used as input and output devices.
  5. The computer system had an operating system and helped to run multiple applications simultaneously. Computers gained a lot of popularity because of small size and low cost.

Advantages:

  • Better than first and second-generation computers
  • Used high-level language
  • Size got reduced further
  • Speed got increased
  • Much better performance
  • Much more reliability

Disadvantages:

  • Initial problem with Manufactures.

 

Model Manufacturer
IBM 360,370 Series IBM
PDP 8 Series Digital Equipment
Spectra 70 Series RCA
UNIVAC 1108,9000 UNIVAC

Fourth Generation Computers
1st PUC Computer Science Question Bank Chapter 1 Overview of Computers 11

  1. The microprocessor was used in fourth the generation computers, as thousands of integrated circuits were built onto a single silicon chip.
  2. The Intel 4004 chip, developed in 1971, located all the components of the computer from the central processing unit and memory to input/output controls on a single chip.
  3. In 1981 IBM introduced its first computer for the home user, and in 1984 Apple introduced the Macintosh.
  4. Network technology was introduced at this time. Fourth generation computers also saw the development of GUIs, the mouse and handheld devices.

Advantages:

  • Speed and Reliability are more
  • Computer occupies every walks of life.
  • More superior to earlier computers.
  • Computer-aided Design introduced (CAD)
  • LAN (Local Area Network) and WAN (Wide area network) got introduced

 

Model

Manufacturer

Apple Series APPLE
M 68000 Motorola
8086, Z 8000 Intel
DEC 10, STAR 1000 Digital Equipment
3033 IBM

KSEEB Solutions

Question 12.
Write a note on the classification of computers in detail.
Answer:
Based on operating principles, computers can be classified into 3 types. They are,

  1. Digital Computers
  2. Analog computers
  3. Hybrid computers

1. Digital computers:
They operate essentially by counting. All quantities are expressed as discrete digits or numbers. Digital computers are useful for evaluating arithmetic expressions and the manipulation of data. The majority of the computers used in the world today are digital.
2. Analog Computers:
They operate by measuring rather than counting. The computer functions by establishing similarities between two quantities that are usually expressed as voltages or currents. Analog computers are powerful tools to solve differential equations.
3. Hybrid Computers:
Computers which combine features of both analog and digital type are called hybrid computers.

Computers are also classified in terms of speed, accuracy, word length and storage capacity. Computers are also available in different sizes and with different capabilities. Broadly, they may be categorised as microcomputers, mini, mainframe, and supercomputers.
1. Micro Computers:
Computers using Microprocessors are called Microcomputers. This is the smallest general-purpose processing system usually designed for use by a single person at a time.

2. Mini Computers:
These are medium-sized computers that are costlier and powerful than a microcomputer. An important distinction between a micro and a minicomputer is that a mini-computer is usually designed to serve multiple users simultaneously. This type of computers need less power and less cooling arrangements. Up to 8 users can use the system simultaneously, running their own individual programs.

3. Super Computers:
The supercomputer is the largest, fastest and most expensive mainframe computer. It is normally used by large business organisations that require an extraordinary amount of computing power. Their computing speed is 10 times faster than any other type of computer. These computers are capable of executing more than 10,000 million instructions per second and have storage capacities of millions of bits per chip.
Normally, the supercomputer is used for solving or handling large scale numerical problems in scientific and engineering fields. These include applications in electronics, petroleum engineering, weather forecasting, structural analysis, chemistry, medicine, and physics.

Question 13.
Explain the importance and usage of computers in different fields.
Ans.
Businesses. Computers help businesses to predict future sales, profits, costs, etc. making companies more accurate in their accounts. Businessmen make bar graphs and pie charts from numerical figures. Firms can store large amounts of data in less space. Many business application software like tally, ms-word, excel are useful in processing business transactions easily.
1. Buildings:
Architects use computer-animated graphics to give their clients a visual walk¬through of their proposed buildings. Computers provide architects many facilities to create different buildings with greater accuracy, better designing, and editing tools, and get the work ‘ done at the fastest speed possible.

2. Education:
Computers are used in classrooms to teach different subjects. It has been proved that learning with computers has been more successful and many forms of new teaching methods have been introduced. This enriches the knowledge of the student at a much faster speed. Likewise, Colleges and various Universities use computers as many educators prefer ‘learning by doing’ method – an approach uniquely suited to the computer.

3. Departmental stores:
Products from salt to grains are packed with zebra-striped bar codes that can be read by the computer scanners at supermarket checkout stands to determine prices. Thus, a detailed bill can be generated, which is useful for both the customer and the retail store.

4. Energy:
Energy companies use computers to locate oil, coal, natural gas and uranium. Electric companies use computers to monitor vast power networks. In addition, meter readers use handheld computers to record how much energy is used each month in homes and offices and generate bills.

5. Transportation:
Computers are used in cars to monitor fluid levels, temperatures, and electrical systems. Computers are also used in the air control traffic systems, where computers are used to control the flow of traffic between airplanes.

6. Banks:
Computers speed up record-keeping and allow banks to offer same-day services and even do-it-yourself banking over the phone and internet.

7. Agriculture:
Farmers use small computers to help with billing, crop information, and cost per acre, feed combinations, and market price checks apart from specific weather forecasts.

8. Entertainment:
Computers can be used to watch television programs on the Internet. People can also watch movies, listen to music and play games on the computer. Many computer games and other entertainment materials of different kinds are available on the Internet.

9. Home:
At home, the computer is used to maintain personal records and to access a lot of information on the Internet. People can also use the computer at home for making home budgets etc.

10. Medical:
Computers are used for maintaining patient history & other records. They are also used for patient monitoring and diagnosis of diseases etc.

Question 14.
Explain the role of computers in the education field.
Answer:
Students use computers for simple word processing that is, to type reports and other documents and to print out the results. This application allows students to revise and edit easily. A computer makes it much easier to redraft a sentence and produce a new printout when compared with producing a handwritten copy.

Encyclopedias and other reference works are available on CD-ROMs, which can be searched by students using the computers at their classroom or school library. Computer-aided instruction (CA1).Interactive programs provide practice in such basic skills as spelling, math computation, and word recognition.

Internet and World Wide Web are a source of information resources that students may access, using their computers at school or at home. Computers are used in running School and College administrations, during the admission procedures, storing of official and student records. They are also used in syllabus planning and decision-making, controlling.

Computers are helpful in directing aptitude tests and achievement tests, at the time of entrance exams. They also process records of salaries, examinations, schemes of examination, printing of papers and question papers, evaluation of answer sheets, mark sheets, and certificates.

Siri Kannada Text Book Class 6 Solutions Gadya Chapter 4 Da. Rajakumar

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1st PUC Computer Science Question Bank Chapter 16 Spreadsheets

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Karnataka 1st PUC Computer Science Question Bank Chapter 16 Spreadsheets

1st PUC Computer Science Spreadsheets One Mark Questions and Answers

Question 1.
Define an electronic spreadsheet.
Answer:
An Electronic spreadsheet is an application software and the spreadsheet is divided into rows and columns to store items like student is marks, stocks, income and expenses, debits and credits.

Question 2.
Define a workbook.
Answer:
A workbook is a set of electronic spreadsheets.

Question 3.
Define a cell.
Answer:
The intersection of a row and a column in a spreadsheet is called a cell.

Question 4.
What is the cell address?
Answer:
A cell address is a unique ID given to a cell represented by column name and row name.

KSEEB Solutions

Question 5.
What is an active cell?
Answer:
The cell that is currently open and ready for editing is called the active cell.

Question 6.
What is cell pointer?
Answer:
Cell pointer is a rectangular box that appears in the worksheet and is used to make an entry in a particular cell.

Question 7.
What is the default extension name for an excel file?
Answer:
The default extension name of an excel file is *.xls or *.xlsx

Question 8.
What is the size of a worksheet?
Answer:
There are 256 columns and 65536 rows in a worksheet.

Question 9.
What is the number of columns and rows present in the excel 2007 worksheet?
Answer:
There are 16384 columns and 1048576 rows, in a worksheet in the latest excel software.

Question 10.
What is the use of a formula in a worksheet?
Answer:
A formula is an expression or cell entry that performs some sort of a calculation. An equal sign = is always the first part of a formula followed by an expression that calculates a value.

Question 11.
What is a label cell?
Answer:
A label cell is a cell that contains alphabets, numbers, and symbols.

KSEEB Solutions

Question 12.
What is a value cell?
Answer:
A cell that contains numbers with or without a + or – symbol is called a value cell.

Question 13.
Define a formula cell.
Answer:
A cell that starts with the = symbol and a value or cell address with a mathematical expression is called a formula cell.

Question 14.
What is the use of the autofill option?
Answer:
The autofill option can be used to insert a series of values in a range of cells easily.

Question 15.
What is the use of autoformat option?
Answer:
The autoformat option allows to select predefined formatting options.

Question 16.
How is a formula entered in a spreadsheet?
Answer:
A formula is entered by beginning it with the = symbol. For example, =a1+ a2

Question 17.
What is the use of sum() function?
Answer:
The sum function is used to compute addition of a range of cell values.

Question 18.
What is a filter in the worksheet?
Answer:
A filter is an option that allows to display only the data of user is choice by hiding other data. Define a chart.

KSEEB Solutions

Question 19.
Define a chart.
Answer:
A chart is a pictorial representation of some data.

Question 20.
Name any two types of charts.
Answer:
Bar graph and pie chart are two types of charts.

Question 21.
Give the short cut keys to select the entire worksheet.
Answer:
The short cut keys to select entire worksheet is Ctrl+Z.

Question 22.
What is a macro?
Answer:
A macro is a series of instructions which can be issued using a single command.

Question 23.
How is data sorted?
Answer:
Data can be sorted both in rows o columns, either in an ascending or in a descending order.

1st PUC Computer Science Spreadsheets Two/ Three Marks Questions and Answers

Question 1.
What are the purposes of spreadsheets?
Answer:
Spreadsheets make it easy to display information, and formulas can be inserted to work with the data. Information can also be sorted and filtered. Data can be used be create charts.

Question 2.
Write the different spreadsheet software.
Answer:
The different spreadsheet software are

  1. IBM Lotus 1-2-3 for Windows and
  2.  Apple Works and Numbers for Mac OS X.

Question 3.
What are the different applications of the spreadsheet?
Answer:

  1. They are used in accounting to prepare balance sheet, auditing, etc.,
  2. They are organizations where data can be represented using charts and graphs.
  3. They are used for statistical calculations

Question 4.
Write any two file menu options.
Answer:
The new option is used to create a new workbook and open option is used to open the saved worksheet.

Question 5.
What is the difference between ‘save’ and ‘save as’ options?
Answer:
The ‘save’ option saves the file under the current file name given by the user, and ‘save as’ option allows for change in the filename and location saves the file.

Question 6.
What are the uses of page setup option in a spreadsheet?
Answer:
The page setup can be used to set the margins, page size and orientation of the page of the worksheet.

Question 7.
What is print preview and how is this useful to the user?
Answer:
The print preview shows the content of a spreadsheet in a printable view. It helps save lots of paper as the user can see the actual print as a preview avoiding mistakes and reprints before it is actually printed.

KSEEB Solutions

Question 8.
What is the use of a print option?
Answer:
The print option can be used to set the number of copies to be printed, selection of printer pages and any selected passage.

Question 9.
Write any three options present in the edit menu.
Answer:
Cut, copy-paste, find, and replace are a few options present in the edit menu.

Question 10.
Write any three options present in the view menu.
Answer:
The normal view, page break preview, full-screen view and enable/disable formula bar and status bar, etc., are the options present in the view menu.

Question 11.
Write any three options of the Insert menu.
Answer:
The insert menu contains inserting cells, charts, rows, columns, clipart, diagram, etc., as options.

Question 12.
Write the options under the format menu.
Answer:
The formatting of cells, modification of row height and column width, autoformat, style, etc., are the options present under the format menu.

Question 13.
Name the different options present in the tools menu.
Answer:
Spellings, error checking, goal seek, and macro autocorrect options are a few options of tools menu.

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Question 14.
What are the different options present in data menu?
Answer:
The different options of data menu are sort, filter, validation, subtotal, and pivot table options.

Question 15.
Write any three mathematical functions.
Answer:
The sum() and product() and power() functions are three mathematical functions.

Question 16.
Write any three statistical functions.
Answer:
The average(), max() and min() functions are three statistical functions.

Question 17.
Write any three date and time functions.
Answer:
The now(), today(), and year() functions are a few date and time functions.

Question 18.
Write any three financial functions.
Answer:
The PMT(), FV() and NPER() are three financial functions.

Question 19.
Write any three logical functions.
Answer:
The AND(), IF(), OR() are three logical functions.

Question 20.
Write any three text functions.
Answer:
The Concatenate(), len() and trim() are three text functions.

KSEEB Solutions

Question 21.
What is a data form?
Answer:
A data form is a convenient way to enter or display one complete row of information in a table, without scrolling horizontally and makes data entry easier.

Question 22.
Mention the steps to add rows and columns in a worksheet.
Answer:
1. The steps to add rows:
Click on the row at the left extreme cell and on the insert menu insert a row.

2. The steps to add columns:
Click on the column insert columns.

Question 23.
Explain the steps used to change the row size and columns width in a worksheet.
Answer:
Select cell, a format, a row height a height in numbers. Select cell, a format, a column width a width in numbers.

Question 24.
Explain the steps of using the auto-format options.
Answer:
The steps of using the auto-format options are follows Govt format, a autoformat, a Select the range of cells, a select the format from the list.

Question 25.
Name the different categories of charts.
Answer:
The different categories of charts are column, line, pie, bar, xy scattered, etc.,

KSEEB Solutions

Question 26.
Give the steps to insert a chart in a worksheet.
Answer:
The steps to insert chart is a select range of cells, insert a chart, a chart type.

1st PUC Computer Science Spreadsheets Five Marks Questions and Answers

Question 1.
Write a short note on the spreadsheet.
Answer:
A spreadsheet is a document which is divided into rows and columns to record such things as items in inventory, income, and expenses, debits and credits, etc.

In a spreadsheet, the COLUMN is defined as the vertical space. Letters are used to name each COLUMN’S location and the ROW is the horizontal space. Numbers are used to assign each ROW’S location.

In a spreadsheet, the CELL is the space where a specified row and column intersect. Each CELL is assigned a name according to its COLUMN letter and ROW number.
Example: C3 is cell in column C row 3.

Question 2.
Explain different parts of an excel worksheet.
Answer:
1st PUC Computer Science Question Bank Chapter 16 Spreadsheets 1

  1. Title Bar – This displays the name of the program and the spreadsheet file name.
  2. A cell is created at the intersection of a row and a column.
  3. Active cell – The cell that is currently open and ready for editing is called the active cell.
  4. The cell reference identifies the exact location of the current active cell. In the Figure above, the active cell is A1.
  5. The formula bar displays the contents of the active cell including any formulas. As user enters or edits data, the changes will appear in the formula bar.
  6. Columns (vertical) are labelled along their column heading A thru Z, AA through AZ, up to column IV.
  7. Rows (horizontal) are labeled by their row headings from 1 through to 65,536.
  8. The name box displays the active cell reference.
  9. The pointer indicates the current location of your mouse pointer.
  10. Each worksheet in the workbook is comprised of sheet tabs which displays the sheet’s name.

Question 3.
Explain the uses of spreadsheets.
Answer:
The different uses of spreadsheets are as follows;

  1. Performing basic mathematical operations such as adding columns and rows of figures.
  2. Finding values such as profit or loss.
  3. Calculating repayment plans for loans or mortgages.
  4. Finding the average, maximum, or minimum values in a specified range of data.
  5. Graphing or charting data, to assist users in identifying data trends.
  6. Sorting and filtering data to find specific information.
  7. Creation of simple lists and tables of alphabetic or numerical data.
  8. Creation and manipulation of simple (flat-file) databases.
  9. Establish relationships between sets of numerical data.
  10. Applies arithmetical, mathematical or statistical functions to numerical datasets.
  11. Represents datasets in graphical or chart form.

KSEEB Solutions

Question 4.
Explain in detail, the different types of cell entries and range of values that can be used in a worksheet.
Answer:
Data is information that is stored in a spreadsheet program. Data is stored in the individual cells of a worksheet. Only one piece of data is stored in each cell. In addition to being stored in the spreadsheet, the data can be used in calculations, displayed in graphs, or sorted and filtered to find specific information. There are three types of data in Excel: values, labels, Formula and dates/times.
1. Value cell entry:
A cell that contains numbers with or without a + or – symbols is called a value cell. These cells can be used in mathematical calculations. For example marks, age, salary, etc.,

2. Label Cell entry:
A cell that contains a to z alphabets, numbers and symbols is called label cell. For example, place name, employee code, etc.,

3. Formula cell entry:
A cell where the cell entry begins with a = and a formula appended to calculate something is called a formula cell entry. For example (= a10 + 25).

4. Cell Range:
A range is a series of two or more cells. If they are adjoining, they are called as adjacent range on contiguous. If the are noncontiguous, they are called a non-adjacent range.

A range is identified by the cell references of the cells in the upper left and lower right comers of the range. These two references are separated by a colon (:) which tells Excel to include all the cells between these start and endpoints. An example of a range of adjacent cells would be B5: D10.

To select an adjacent range, click on a cell in a corner of your selection and drag the mouse over the remaining cells. For example, A1 through D6, D8 through E9, and B14 through D15 are written as A 1:D6 or D8: E9 or B14: D15.

  • To select a non-adjacent range, first select an adjacent range of cells. Now, press and hold down the Ctrl key while you select another adjacent range of cells. Release the mouse button and the Ctrl key.
  • The adjacent ranges can be combined into a variety of different non-adjacent ranges. For example, one non-adjacent range is A1 through D6 and D8 through E9 is written as A1: D6; D8: E9.

Question 5.
Write a short note on the formatting toolbar.
Answer:
It is a toolbar that has the icons that provide the various formatting settings for cells, columns, rows, and data in Excel. For example, it can allow you to change the colours of rows, cells, and columns. It allows you to change fonts. It allows you to set the alignment for data in cells. It allows you apply borders to cells. It allows you to change the format of numbers, like adjusting the amount of decimals they have or changing them to percentage format. All of these and other things can be done with it.
1. Format Cells Dialog Box:
For a complete list of formatting options, right-click on the highlighted cells and choose Format Cells from the shortcut menu or select Format > Cells from the menu bar.
1st PUC Computer Science Question Bank Chapter 16 Spreadsheets 2
2. Number tab:
The data type can be selected from the options on this tab. General is to be selected if the cell contains text and numbers, or a different numerical category if the cell is a number that will be included in functions or formulas. The number tab can be used to limit the number of decimal places.

3. Alignment tab:
These options allows the user, to change the position and alignment of the data within the cell. For example, right, left, center, vertical alignments, text-wrap, etc.,

4. Font tab:
All of the font attributes are displayed in this tab including font face, size, style, and effects. For example, bold, italicize, underline, increase/decrease the font size, changing the color of font, fill, etc., can be done.

5. Border and Pattern tabs:
These tabs allow the user to add borders, shading, and background colors to a cell.

KSEEB Solutions

Question 6.
Explain the steps involved in drawing a chart in excel.
Answer:
A chart is a pictorial representation of data. The data is first entered in a worksheet in a table format. The table shall contain a heading followed by the numerical values. The steps in creating a chart are as follows;
Step 1:
Data is entered in the cells of an Excel spreadsheet.

Step 2:
Mouse is used to highlight the block of cells containing data, and then insert chart is clicked on.

Step 3:
When the chart wizard comes up, column or bar graph and a subtype as clustered or stacked type is chosen as per requirement.

Step 4:
If the user wants to switch what appears on the X and Y axis, right-clicking on the bar graph, then on ‘ Select Data,’ and finally on  ‘Switch Row/Column’.

Step 5:
Labels and legends of the chart an bead justed if needed. User can on the bar graph, and then click the ‘Layout’ tab. Here you can choose what layout you prefer for the chart title, axis titles, and legend.

Siri Kannada Text Book Class 7 Solutions Puraka Patagalu Chapter 5 Nanna Ayya

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