2nd PUC Physics Question Bank Chapter 13 Nuclei

You can Download Chapter 13 Nuclei Questions and Answers, Notes, 2nd PUC Physics Question Bank with Answers, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Physics Question Bank Chapter 13 Nuclei

2nd PUC Physics Nuclei NCERT Text Book Questions and Answers

Question 1.
(a) Two stable isotopes of lithium \(_{ 3 }^{ 6 }{ Li\quad }and\quad _{ 3 }^{ 7 }{ Li }\) have respective abundances of 7.5% and 92.5%. These isotopes have masses of 6.01512 u and 7.01600 u, respectively. Find the atomic mass of lithium.

(b) Boron has two stable isotopes, \(_{ 5 }^{ 10 }{ B\quad }and\quad _{ 5 }^{ 7 }{ B }\). Their respective masses are 10.01294 u and 11.00931 u, and the atomic mass of boron is 10.811 u. Find the abundances of \(_{ 5 }^{ 11 }{ B\quad }and\quad _{ 5 }^{ 11 }{ B }\).
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 1

Question 2.
The three stable isotopes of neon: \(_{ 10 }^{ 20 }Ne,\quad _{ 10 }^{ 21 }{ Ne }\quad and\quad _{ 10 }^{ 22 }{ Ne }\) have respective abundances of 90.51%, 0.27% and 9.22%. The atomic masses of the three isotopes are 19.99 u, 20.99 u, and 21.99 u, respectively. Obtain the average atomic mass of neon.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 2

Question 3.
Obtain the binding energy (in MeV) of a nitrogen nucleus \(\left( _{ 7 }^{ 14 }{ N } \right) \) given \(m\left( _{ 7 }^{ 14 }{ N } \right) =14.00307u\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 3

Question 4.
Obtain the binding energy of the nuclei \(_{ 26 }^{ 56 }{ Fe\quad and\quad _{ 83 }^{ 209 }{ Bi } }\) in units of MeV from the following data:
\(m\left( _{ 26 }^{ 56 }{ Fe } \right) =55.934939u\)
\(m\left( _{ 83 }^{ 209 }{ Bi } \right) =208.980388u\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 4
2nd PUC Physics Question Bank Chapter 13 Nuclei 5

KSEEB Solutions

Question 5.
A given coin has a mass of 3.0 g. Calculate the nuclear energy that would be required to separate all the neutrons and protons from each other. For simplicity assume that the coin is entirely made of \(_{ 29 }^{ 63 }{ Cu }\)atoms (of mass 62.92960 u).
Answer:
mp = 1.007825 amu
mn = 1.008665 amu
m (Cu) = 62.92960 amu
The energy required to separate all the neutrons and protons, from each other in the coin is equal to the binding energy of all the atoms in the coin. Number of atoms in the copper coin of mass 3g,
2nd PUC Physics Question Bank Chapter 13 Nuclei 6
The atomic number of copper is 29. Therefore, one atom of copper contains 29 protons and 63-29 i.e. 34 neutrons.
∴ Mass of the constituent nucleons of a copper atom
= 29mp + 34mn
= 29 x 1.007825 + 34 ×1.008665
= 63.521535 amu
∴ Mass defect in a copper atom
= 63.521535-62.92960
= 0.591935 amu
Mass defect of all the atom in the coin,
Δm = 0.591935 x 2.868 x 1022 = 1.698 x 1022 amu
The energy required to separate all the neutrons and protons in the coin,
E = a m x 931.5 = 1.698 x 1022 x 931.5 = 1.582 x 1025 MeV.

Question 6.
Write nuclear reaction equations for
2nd PUC Physics Question Bank Chapter 13 Nuclei 7
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 8

Question 7.
A radioactive isotope has a half-life of T years. How long will it take the activity to reduce to
(a) 3.125%
(b) 1% of its original value?
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 9
2nd PUC Physics Question Bank Chapter 13 Nuclei 10

Question 8.
The normal activity of living carbon-containing matter is found to be about 15 decays per minute for every gram of carbon. This activity arises from the small proportion of radioactive \(_{ 6 }^{ 14 }C\) present with the stable carbon isotope \(_{ 6 }^{ 12 }C\). When the organism is dead, its interaction with the atmosphere (which maintains the above equilibrium activity) ceases and its activity begins to drop. From the known half-life (5730 years) of \(_{ 6 }^{ 14 }C\) and the measured activity, the age of the specimen can be approximately estimated. This is the principle of \(_{ 6 }^{ 14 }C\) dating used in archaeo­logy. Suppose a specimen from Mohenjodaro gives an activity of 9 decays per minute per gram of carbon. Estimate the approximate age of the Indus-Valley civilisation.
Answer:
Suppose that the number of C-14 atoms per gram was No at t = 0 (initially) when its activity was 15 decays per minute per gram. Today, i.e. after time t (age of once-living organism), the number of C-14 atom per gram left is N and it shows an activity of 9 decays per minute per gram. Now, the activity of a radioactive substance is given by,
2nd PUC Physics Question Bank Chapter 13 Nuclei 11
2nd PUC Physics Question Bank Chapter 13 Nuclei 12

Question 9.
Obtain the amount of \(_{ 27 }^{ 60 }Co\) necessary to provide a radioactive source of 8.0 mCi strength. The half-life of \(_{ 27 }^{ 60 }Co\) is 5.3 years.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 13

Question 10.
The half-life of \(_{ 38 }^{ 90 }Sr\) is 28 years. What is the disintegration rate of 15 mg of this isotope?
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 14
2nd PUC Physics Question Bank Chapter 13 Nuclei 15

Question 11.
Obtain approximately the ratio of the nuclear radii of the gold isotope \(_{ 79 }^{ 197 }{ Au }\) and the silver \(_{ 49 }^{ 107 }{ Ag }\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 16

Question 12.
Find the Q-value and the kinetic energy of the emitted α -particle in the α -decay

2nd PUC Physics Question Bank Chapter 13 Nuclei 17
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 18
2nd PUC Physics Question Bank Chapter 13 Nuclei 19
2nd PUC Physics Question Bank Chapter 13 Nuclei 20

Question 13
The radionuclide 11C decays according to \(_{ 6 }^{ 11 }{ C }\rightarrow _{ 5 }^{ 11 }{ B }+{ e }^{ + }+v:{ T }_{ 1/2 }=20.3min\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 21

The maximum energy of the emitted positron is practically equal to the Q-value of the reaction. It is because the mass of the neutrino is negligibly small as compared to the mass of the positron. Therefore, when they share the energy, the whole of the energy is carried by the positron.

KSEEB Solutions

Question 14.
The nucleus \(_{ 10 }^{ 23 }{ Ne }\) decays by β emission. Write down the β -decay equation and determine the maximum kinetic energy of the electrons emitted. Given that: \(_{ 10 }^{ 23 }{ Ne }=22.994466u\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 22
The energy released is shared by the Na nucleus and the electron-neutrino pair released. As the electron-neutrino pair is much lighter than the 23 Na nucleus, practically the Whole of the energy released is carried by electron-neutron will carry the maximum energy. Therefore, the maximum kinetic energy of the emitted electron is 4.374 MeV.

Question 15.
The Q value of a nuclear reaction A+b→C+d is defined by Q=[mA+mB-mc-md] where the masses refer to the respective nuclei. Determine from the given data the Q-value of the following reactions and state whether the reactions are exothermic or endothermic.
2nd PUC Physics Question Bank Chapter 13 Nuclei 23
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 24

Question 16.
Suppose, we think of fission of a \(_{ 26 }^{ 56 }{ Fe }\) nucleus into two equal fragments, \(_{ 13 }^{ 28 }{ Al }\). Is fission energetically possible? Argue by working out Q of the process.
Given m(_{ 26 }^{ 56 }{ Fe })=55.93494u and
\(m(_{ 26 }^{ 56 }{ Al })=27.98191u\)
Answer:
m(_{ 26 }^{ 56 }{ Fe })=55.93494u
2nd PUC Physics Question Bank Chapter 13 Nuclei 25

Question 17.
The fission properties of \(_{ 94 }^{ 219 }{ Pu }\) are very similar to those of  \(_{ 92 }^{ 235 }{ U }\) . The average energy released per fission is 180 MeV. How much energy, in MeV, is released if all the atoms in 1 kg of pure \(_{ 94 }^{ 239 }{ U }\) undergo fission?
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 26

Question 18.
A 1000 MW fission reactor consumes half of its fuel in 5.00 y. How much \(_{ 92 }^{ 235 }{ U }\) did it contain initially? Assume that the reactor operates 80% of the time, that all the energy generated arises from the fission of \(_{ 92 }^{ 235 }{ U }\) and that this nuclide is consumed only by the fission process.
Answer:
Power of the reaction, P = 1000 MW = 109W
The reactor operates for 80% of the total time.
2nd PUC Physics Question Bank Chapter 13 Nuclei 27

Question 19.
How long can an electric lamp of 100W be kept glowing by fusion of 2.0 kg of deuterium? Take the fusion reaction as
2nd PUC Physics Question Bank Chapter 13 Nuclei 28
Answer:
Mass of the deuterium, 2 kg = 2000g
Number of deuterium nuclei in 2 kg,
2nd PUC Physics Question Bank Chapter 13 Nuclei 29
2nd PUC Physics Question Bank Chapter 13 Nuclei 30

Question 20.
Calculate the height of the potential barrier for a head-on collision of two deuterons. (Hint: The height of the potential barrier is given by the Coulomb repulsion between the two deuterons when they just touch each other. Assume that they can be taken as hard spheres of radius 2.0 fm.)
Answer:
In the head-on collision of two deuterons, the two nuclei come to close up to a distance equal to the sum of their radii
∴r = 2 + 2=4fm = 4×10-15m
The charge on a deuteron
e = charge on a proton = 1.6x 10-19c
∴ The potential energy of the deuterons during a head-on collision,
2nd PUC Physics Question Bank Chapter 13 Nuclei 31
∴ A deuteron will require a Kinetic energy of 360 keV to surmount the potential barrier.

Question 21.
From the relation \(R={ R }_{ 0 }{ A }^{ 1/2 }\) where R0 is a constant and A is the mass number of a nucleus, show that the nuclear matter density is nearly constant. (i.e. independent of A).
Answer:
Let us find the density of the nucleus of an atom, whose mass number is A.
The mass of the nucleus of the atom of mass number A
2nd PUC Physics Question Bank Chapter 13 Nuclei 32

Question 22.
For the β+ (positron) emission from a nucleus, there is another competing process known as electron capture (electron from an inner orbit, say, the K- shell, is captured by the nucleus and a neutrino is emitted).
\({ e }^{ + }+_{ z }^{ A }{ X }\rightarrow _{ Z-1 }^{ A }{ Y+v }\)
Show that if β+ emission is energetically allowed, electron capture is necessarily allowed but not vice-versa.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 33
2nd PUC Physics Question Bank Chapter 13 Nuclei 34

From equations (1) and (2), it follows that if E1> 0, then E2 > 0
i.e if β+emission is energetically allowed, then the electron capture is necessarily allowed. On the other hand, if E2 > 0, then it does not necessarily mean that E2> 0, Thus if the electron capture is allowed, then β+emission is not necessarily allowed.

2nd PUC Physics Nuclei Additional Exercises

Question 23.
In a periodic table the average atomic. mass of magnesium is given as 24.312 u. The average value is based on their relative natural abundance on earth. The three isotopes and their masses are \(_{ 12 }^{ 24 }{ Mg }(23.98504u)\), \(_{ 12 }^{ 24 }{ Mg }(24.98584u)\) and \(_{ 12 }^{ 24 }{ Mg }(25.98259u)\). The natural abundance of \(_{ 12 }^{ 24 }{ Mg }\quad is\quad 78.99%\) by mass. Calculate the abundances of other two isotopes.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 35
2nd PUC Physics Question Bank Chapter 13 Nuclei 36

Question 24.
The neutron separation energy is defined as the energy required to remove a neutron from the nucleus. Obtain the neutron separation energies of the nuclei \(_{ 20 }^{ 41 }{ Ca }_{ 13 }^{ 27 }{ Al }\) from the following data:
\(m\left( _{ 20 }^{ 40 }{ Ca } \right) =39.962591u\)
\(m\left( _{ 20 }^{ 41 }{ Ca } \right) =40.962278u\)
\(m\left( _{ 13 }^{ 26 }Al \right) =25.986895u\)
\(m\left( _{ 13 }^{ 27 }Al \right) =26.981541u\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 37

Question 25.
A source contains two phosphorous radio nuclides \(_{ 15 }^{ 33 }{ P({ T }_{ 1/2 }=14.3d) }\quad and\quad _{ 15 }^{ 33 }{ P }{ ({ T }_{ 1/2 }=25.3d) }\)Initially, 10% of the decays come from \({ { T }_{ 1/2 } }\). How long one must wait until 90% do so?
Answer:
Initially 10% of the decays come from \(_{ 15 }^{ 33 }{ P }\) the number of nuclei of \(_{ 15 }^{ 33 }{ P }\) left behind will be 90% and that of \(_{ 15 }^{ 33 }{ P }\) will be 10%. Let N, and N2 be the number of the nuclei of \(_{ 15 }^{ 33 }{ P }\) and \(_{ 15 }^{ 33 }{ P }\) present initially. It follows that  if N, = 9N1, then N2 = N
suppose that 90% of \(_{ 15 }^{ 33 }{ P }\) nuclei decay in time t. Let N’1 and N’2 be the numbers of the nuclei of \(_{ 15 }^{ 33 }{ P }\) and \(_{ 15 }^{ 33 }{ P }\) present after the time t. It follows that
2nd PUC Physics Question Bank Chapter 13 Nuclei 38
2nd PUC Physics Question Bank Chapter 13 Nuclei 39

Question 26.
Under certain circumstances, a nucleus can decay by emitting a -particle more massive than an a-particle. Consider the following decay processes:
2nd PUC Physics Question Bank Chapter 13 Nuclei 40
Calculate the Q-values for these decays and determine that both are energetically allowed.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 41
2nd PUC Physics Question Bank Chapter 13 Nuclei 42

Question 27.
Consider the fission of \({ _{ 92 }^{ 238 }{ U } }\) by fast neutrons. In one fission event, no neutrons are emitted and the final end products, after the beta decay of the primary fragments, are \({ _{ 58 }^{ 140 }{ Ce } }\quad and\quad _{ 44 }^{ 99 }{ Ru }\). Calculate Q for this fission process. The relevant atomic and particle masses are
2nd PUC Physics Question Bank Chapter 13 Nuclei 43
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 44

KSEEB Solutions

Question 28.
Consider the D-T reaction (deuterium-tritium fusion)
\({ _{ 1 }^{ 2 }{ Ce } }\quad +\quad _{ 1 }^{ 3 }{ Ru\rightarrow _{ 2 }^{ 4 }{ He }+n }\)
(a) Calculate the energy released in MeV in this reaction from the data:
\(m(_{ 1 }^{ 2 }{ H })=2.014102u\)
\(m(_{ 1 }^{ 3 }{ H })=3.016049u\)
(b) Consider the radius of both deuterium and tritium to be approximately 2.0 fm. What is the kinetic energy needed to overcome the coulomb repulsion between the two nuclei? To what temperature must the gas be heated to initiate the reaction? (Hint: Kinetic energy required for one fusion event =average thermal kinetic energy available with the interacting particles = 2(3kT/2); k = Boltzman’s constant!, T = absolute temperature.)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 45
the two nuclei almost come in contact with other is given by,
2nd PUC Physics Question Bank Chapter 13 Nuclei 46

Question 29.
Obtain the maximum kinetic energy of β-particles, and the radiation frequencies of γ decays in the decay scheme shown in Fig. 13.6. You are given that
2nd PUC Physics Question Bank Chapter 13 Nuclei 47
Answer:
E1=0
2nd PUC Physics Question Bank Chapter 13 Nuclei 48
2nd PUC Physics Question Bank Chapter 13 Nuclei 49
2nd PUC Physics Question Bank Chapter 13 Nuclei 50

Question 30.
Calculate and compare the energy released by a) fusion of 1.0 kg of hydrogen deep within Sun and b) the fission of 1.0 kg of 235U in a fission reactor.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 51
2nd PUC Physics Question Bank Chapter 13 Nuclei 52

2nd PUC Physics Question Bank Chapter 13 Nuclei 53

KSEEB Solutions

Question 31.
Suppose India had a target of producing by 2020 AD, 200,000 MW of electric power, ten percent of which was to be obtained from nuclear power plants. Suppose we are given that, on average, the efficiency of utilization (i.e. conversion to electric energy) of thermal energy produced in a reactor was 25%. How much amount of fissionable uranium would our country need per year by 2020? Take the heat energy per fission of 235U to be about 200MeV,
Answers
Energy released per fission = 200 MeV
Efficiency of utilization = 25%
∴ Electrical energy produced per fission
2nd PUC Physics Question Bank Chapter 13 Nuclei 54

2nd PUC Physics Nuclei Additional Questions and Answers

Question 1.
Two nuclei have mass numbers in the ratio 1:2, what is the ratio of the nuclear densities?
Answer:
Nuclear density is independent of the mass number of a nucleus. Since all nuclei have same nuclear density (approximately), their ratio of nuclear densities is 1:1

Question 2.
Calculate the density of hydrogen nucleus in SI units R0 = 1.1 x10-15 m and  a.m.u = 66 x 1027 kg.
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 55

Question 3.
The half-life period of a radioactive substance is 30 days. What is the time taken for \(\frac { { 3 }^{ th } }{ 4 } \) of its original mass to
disintegrate?
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 56

KSEEB Solutions

Question 4.
Half-life, T = 138 days
Half-life of a certain radioactive material is 138 days. After what lapse of time, the undecayed- fraction of the material will be 12.5%?
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 57

Question 5.
The half life of \(_{ 92 }^{ 238 }{ U }\) against decay is 4.5 x 109 years. How many disintegrations per second occur in 1 kg of \(_{ 92 }^{ 238 }{ U }\)
Answer:
2nd PUC Physics Question Bank Chapter 13 Nuclei 58

Question 6.
Which of the following cannot be emitted by radioactive substance during their decay?
(A) Protons
(B) Neutrinos
(C) Helium nuclei
(D) Electrons
Answer:
(A) Protons

Question 7.
Starting with a sample of pure \(^{ 66 }{ Cu,\frac { 7 }{ 8 } }\) of it decays into Zn in 15 minutes. The corresponding half life is
(A) 10 minutes
(B) 15 minutes
(C) 5 minutes
(D) 7.5 minutes
Answer:
The undecayed mass left after time t is given by,
2nd PUC Physics Question Bank Chapter 13 Nuclei 59

Question 8.
In r-ray emission from a nucleus:
(A) Both neutron number and proton number change
(B) There is no change in neutron and proton number
(C) Only the neutron number changes
(D) only the proton number changes
Answer:
(B) There is no change in neutron and proton number

KSEEB Solutions

Question 9.
If the binding energy per nucleon in  \(_{ 3 }^{ 4 }{ Li }\quad and\quad _{ 3 }^{ 4 }{ He }\) nuclei are 5.60 MeV and 7.06 MeV respectively, then in reaction \(_{ 1 }^{ 1 }{ Li }+_{ 3 }^{ 4 }{ He }\rightarrow 2\quad _{ 2 }^{ 4 }{ He }\) energy of proton must be
(A) 28.24 MeV
(B) 17.28 MeV
(C) 1.46 MeV
(D) 39.2 MeV
Answer:

Question 10.
Nuclear fission can be explained by:
(A) proton-proton cycle
(B) shell model of nucleus
(C) liquid drop model of nucleus
(D) independent of nuclear model of nucleus.
Answer:
(C) liquid drop model of nucleus

2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital

You can Download Chapter 1 Accounting for Share Capital 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 Accounting for Not for Profit Organisation

2nd PUC Accountancy Accounting for Share Capital NCERT Textbook Questions and Answers

2nd PUC Accountancy Accounting for Share Capital 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 cannot 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.

KSEEB Solutions

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 Motors, Reliance, etc are called Listed Company. These companies are also called Quota Companies.

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:

  1. For paying up unissued shares of the company to be issued to members of the company as fully paid bonus share.
  2. For Writing off the preliminary expenses of the company.
  3. For writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company.
  4. For paying up the premium that is to be payable on redemption of preference shares or debentures of the company.
  5. 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 ajlot 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 Accounting for Share Capital Long Answer Type Questions and Answers

Question 1.
What is meant by the word‘Company? Describe its characteristics.
Answer:
The Section 3 (1) (i) of the Company Act of 1956 defines an organisation as a company that is formed and registered under the Act or any existing company that is formed and registered under any earlier company laws. In general, a company is an artificial person, created by law that has a separate legal entity, perpetual succession, common seal and has limited liability.

Characteristics of Company

1. Association of Person: A company is formed Voluntarily by a group of persons to perform a common business. Minimum number of person should be two for formation of a private company and seven for a public company.

2. Artificial Person: Company is an artificial and juristic person that is created by law.

3. Separate Legal Entity: A company has a separate legal entity from its members
(shareholders) and Directors. It can open a bank account, sign a contract and can own a property in its own name. ‘

4. Limited Liability: The liability of the members of a company is limited up to the nominal value or the face value of the shares. Unlike a partnership firm, on insolvency of a company, the members and the shareholders are not liable to pay the amount due to the creditors of the company. In fact, the members and the shareholders are only liable to pay the unpaid amount of the shares held by them.

5. Perpetual Existence: The existence of company is not affected by the death, retirement, and insolvency of its members. That is, the life of a company remains unaffected by the life and the tenure of its members in the company. The life of a company is infinite until it is properly wound up as per the Company Act.

6. Common Seal: The Company is an artificial person ‘and has no physical existence hence it cannot put its signature. Thus, the Common Seal acts as an official signature of a company that validates the official documents.

7. Transferability of Shares: The shares of public limited company are easily and freely transferable without any consent from other members. But the share of ownership of a private limited company is not transferable without the consent of the other members.

KSEEB Solutions

Question 2.
Explain in brief the main categories in which the share capital of a company is divided.
Answer:
The division of the share capital of a company into main categories is diagrammatically
explained below:

  • Authorised Capital: It is anamount which is stated in the Memorandum of Association. It is the maximum amount that the company can raise by issuing shares. This maximum amount can be increased as per the procedures laid down in the Company Act.
  • Issued Capital: It is a part of authorised capital which is offered by the company tp the general public for subscription.
  • Unissued Capital: It is a part of authorised capital that is not offered till now but can be offered to the general public in future.
  • Subscribed Capital: It is a part of issued capital that is actually subscribed by the general public.
  • Unsubscribed Capital: It is that part of the issued capital that is not subscribed by the public.
  • Called up Capital: It is a part of subscribed capital that is called up by the Directors from the shareholders of a company to pay.
  • Uncalled up Capital: It is that part of subscribed capital which is not called up till now but can be called up in future as per the need of the company.
  • Paid up capital: It is that part of called up share capital which is actually received from the shareholders.

9. Reserved Capital: As per the Section 99 of the Company Act of 1956, a limited company may call up any portion of uncalled share capital in the event of winding up of the company to pay its creditors. This amount of uncalled share capital cannot be used for any other purpose and is reserved -for paying back the creditors that is why such portion of share capital is called reserve capital.

Question 3.
What do you mean by the term ‘share’? Discuss the type of shares, which can be issued under the Companies Act, 1956 as amended to date.
Answer:
The total capital of a company is divided into equal units of small denomination termed as shares. The ownership of these shares is easily transferable, from one person to other, subject to certain conditions. The person who is contributing in the capital in the form of shares is known as shareholder.
Types of Shares As per the Section 86 of the Company Act of 1956, there are two types of shares:

1. Preference Shares: Section 85 of the Company Act, 1956 defines Preference Shares to be featured by the following rights: –
a) Preference Shares entitle its holder the right to receive dividend at a fixed rate or fixed amount.
b) Preference Shares entitle its holder the preferential right to receive repayment
of capital invested by them before their equity counterparts at the time of winding up of the company.

2. Equity Shares: Equity Shareholders have a voting right and control the affairs of a company. As per Section 85 (2) of Companies Act 1956; equity share is a share that is not a preference share. It does not possess any preferential right of payment of dividend or repayment of capital. The rate of dividend is not fixed on equity shares and varies from year to year, depending upon the amount of profit available for distribution after paying dividend to the preference shareholders.

Question 4.
Discuss the process for the allotment of shares of a company in case of over subscription.
Answer:
When the total number of applications received for shares exceeds the number of shares offered by the company to the public, the situation of oversubscription arises. A company can opt for any of the three alternatives to allot shares in case of oversubscription of shares.

  • Excess applications are refused and money received on excess applications is returned to the applicants.
  • The company can allot shares on pro rata basis to all the share applicants. The excess, amount received in the application is adjusted on the allotment.
  • In this case, the company follows acombination of both the method. It may reject some share applications and may allot some applications on the pro rata basis.

Question 5.
What is a preference Share’? Describe the different types of preference shares.
Answer:
Preference Shares: Section 85 of the Company Act, 1956 defines Preference Shares to be featured by the following rights:

  • Preference Shares entitle its holder the right to receive dividend at a fixed rate or fixed amount.
  • Preference Shares entitle its holder the preferential right to receive repayment of capital invested by them before their equity counterparts at the time of winding up of the company.

Types of Preference Shares

1. Cumulative Preference Shares: When a preference shareholder has a right to recover any arrears of dividend, before any dividend is paid to the equity shareholders, then the type of Preference Shares held by the shareholder is known as Cumulative Preference Shares.

2. Non-Cumulative Preference Share: When a preference shareholder receives dividend only in case of profit and is not entitled any right to recover the arrears of dividend, then the type of Preference Shares held by the shareholder is known as Non-Cumulative Preference Shares.

3. Participating Preference Share When a preference shareholder enjoys the right to participate in the surplus profit (in addition to the fixed rate of dividend) that is left after the payment of dividend to the equity shareholders, the type of shares held by the shareholder is known as Participating Preference Share.

4. Non-participating Preference Share: When a preference shareholder receives only a fixed rate of dividend every year and do not enjoy the additional participation in the surplus profit, then the type of shares held by the shareholder is known as Non¬Participating Preference Shares.

5. Redeemable preference share: When a preference shareholder is repaid by the company after a certain specified period in accordance with the term specified in the Section 80 of Company Act of 1956, then the type of the shares held by him/her is known as Redeemable Preference Shares.

6. Non-Redeemable Preference share: These shares are not repaid by the company during its lifetime. As per the Section 80A of the Company Act of 1956, no company can issue Non-Redeemable Preference Shares. It is merely a theoretical concept.

7. Convertible Preference Share: The shareholders holding Convertible Preference Shares have a right to convert his/her shares into equity shares.

8. Non-Convertible Preference Share: Unlike Convertible Preference Shares, the shareholders holding Non-Convertible Preference Shares do not enjoy the right to convert their shares into equity shares.

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Question 6.
Describe the provisions of law relating to ‘Calls-in-Arrears’ and ‘Calls-in-Advance’.
Answer:
Calls-in-Arrears: When a shareholder fails to pay the amount due on allotment or any subsequent calls, then it is termed as Calls-in-Arrears. The Company is authorised by its Article of Association to charge interest at a specified rate on the amount of Call in Arrears from the due date till the date of payment. If the Article of Association is silent in this regard, then Table A shall be applicable that is interest at 5% p.a. is charged from the shareholders.

As per the Revised Schedule VI of the Companies Act, Calls-in-Arrears are deducted from the Called-up Share Capital in the Notes to Accounts (that is prepared outside the Balance Sheet) under the head ‘Share Capital’. The final amount of Share Capital is shown on the Equity and Liabilities side of the Company’s Balance Sheet. The company can also forfeit the shares on account of non-payment of the calls money after giving proper notice to the shareholders.

Calls-in-Advance: When a shareholder pays the whole amount or a part of the amount in advance, i.e. before the company calls, then it is termed as Calls-in-Advance. The company is authorized by its Article of Association to pay interest at the specified rate on call in advance from the date of payment tiJI the date of call made. If the Article of Association is silent in this regard, then Table A shall be applicable that is, interest at 6% p.a. is provided to the shareholders.

As per the Revised Schedule VI of the Companies Act, Calls-in-Advance (along with interest on it) is added to the ‘Other Current Liabilities’ in the Notes to Accounts. The final amount of Other Current Liabilities is shown under the main head of ‘Current Liabilities’ on the Equity and Liabilities side of the Company’s Balance Sheet.

Question 7.
Explain the terms ‘Over-subscription’ and ‘Under-subscription’. How are they dealt with in accounting records?
Answer:
When the total number of applications received for shares exceeds the number of shares offered by the company to the public, the situation of oversubscription arises. A company can opt for any of the three alternatives to allot shares in ease of oversubscription of shares.

  • Excess applications are refused and money received on excess applications is returned to the applicants.
  • The company can allot shares on pro-rata basis to all the share applicants. The excess amount received in the application is adjusted on the allotment.
  • In this case, the company follows a combination of both the method. It may reject some share applications and may allot some applications on the pro rata.basis.

Under-subscription: When the number of shares applied by the public is lesser than the number of shares issued by the company, then the situation of Under- subscription arises. As per the Company Act, the Minimum Subscription is 90% of the shares issued by the company. This implies that the company can allot shares to the applicants provided if applications for 90% of the issued shares are received. Otherwise, the company should refund the entire application amount received. In this regard, necessary Journal entry is passed only after receiving and refunding of the application money.

Question 8.
Describe the purposes for which a company can use ‘Securities Premium Account’. Ans. As per the Section 78 of the Companies Act of 1956, the amount of securities premium can
be used by the company for the foilowing 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 9.
State clearly the conditions under which a company can issue shares at a discount.
Answer:
As per the Section 79 of the Company Act of 1956, following are the conditions under which a company can issue shares at a discount.

  • A company can issue shares at discount provided it has previously issued such type of shares.
  • The issue of shares at a discount is authorised by a resolution passed by the company in the General Meeting and sanction obtained from the Company Law Tribunal.
  • The resolution specifies that the maximum rate of discount is 10% of the face value of the shares, unless higher percentage of discount allowed by the Company Law Tribunal.
  • A company can issue shares at discount at least after one year from the date of commencing business.
  • If a company wants to issue shares at discount, then it must issue them within two months of obtaining sanction from the Company Law Tribunal.
  • Every prospectus related to the issue of the shares should explicitly and clearly contain particulars of the discount allowed on the issue of shares.

Question 10.
Explain the term ‘Forfeiture of Shares’ and give the accounting treatment on forfeiture.
Answer:
If a shareholder fails to pay the allotment money and/or any subsequent calls, then the company has the right to forfeit shares by giving a proper notice to the shareholder.

Accounting Treatment for Forfeiture of Shares:

i) Forfeiture of Shares that were issued at Par
Share Capital A/c Dr. (Amount called up)
To Share Allotment A/c (amount not received)
To Share Calls A/c(amount not received)
To Share Forfeiture A/c (amount received)
(Being Shares forfeited)

ii) Forfeiture of Shares that were issued at Premium
a) If premium is received, then the premium is not shown.
Share Capital A/c Dr (Amount called up)
To Share Allotment A/c (Amount not received)
To Share Calls A/c(Amount not received) .
To Share forfeiture A/c(Amount received) (Being Shares forfeited)

b) If premium is not received, then the premium is shown. ,
Share Capital A/c Dr (Amount called up excluding premium)
Share Premium A/c Dr (Amount not received)
To Share Allotment A/c (Amount not received including premium)
To Share Calls A/c (Amount not received)
To Share Forfeiture A/c (Amount received including premium)
(Being Shares forfeited)

iii) Forfeiture of Shares that were issued at Discount
Share Capital A/c Dr(Amount called up, plus discount)
To Discount on Issue of Shares A/c (Amount of discount)
To Share Allotment A/c (Amount not received)
To Share Calls A/c (Amount not received)
To Share Forfeiture A/c (Amount received)

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2nd PUC Accountancy Accounting for Share Capital Numerical Questions and Answers

Question 1.
Anish Limited issued 30,000 equity shares of ₹ 100 each’ payable at ₹ 30 on application, ₹ 50 on allotment and ₹ 10 on 1st and final call. All money was duly received.
Record these transactions in-the journal of the company.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 1

Question 2.
The Adersh Control Device Ltd was registered with the authorised capital of ₹ 3,00,000 divided into 30,000 shares of ₹ 10 each, which were offered to the public Amount payable as ₹ 3 per share on application, ₹ 4 per share on allotment and ₹ 3 per share on first and final call. These share were fully subscribed and all money was dully received. Prepare journal and Cash Book.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 2
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 3

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Question 3.
Software‘solution India Ltd inviting application for 20,000 equity share of ₹ 100 etch, payable ₹ 40 on application, ₹ 30 on allotment and ₹ 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money. returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 4
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 5
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 6

Question 4.
Rupak Ltd. issued 10,000 shares of ₹ 100 each payable ₹ 20 per share on application, ₹ 30 per share on allotment and balance in two calls of ₹ 25 per share. The application and allotment money were duly received. On first cal( all member pays their dues except ‘ one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book.
answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 7
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 8
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 9

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Question 5.
Mohit Glass Ltd. issued 20,000 shares of ₹ 100 each at ₹ 110 per share, payable ₹ 30 on application, ₹ 40 on allotment (including Premium), ₹ 20 on first and ₹ 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received.
Give journal entries
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 10
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 11
Question 6.
A limited company offered for subscription of 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. 2,00,000.10% Preference shares of ₹ 10 each at par.
The amount on share was payable as under:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 12
All the shares were fully subscribe called-up and paid.
Record these transactions in the journal and cash book of the company:
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 13
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 14

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Question 7.
Eastern Company Limited, with an authorised capital of ₹ 10,00,000 is divided into shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:
On Application – ₹ 3 per share
On Allotment (including premium) – ₹ 5 per share
Oh first call (due three months after allotment)  – ₹ 3 per share
and the balance as and then required.
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(a) Applicants for 40,000 shares received in full.
(b) Applicants for 15,000 shares received an allotment of 8,000 shares.
(c) Applicants for 500 shares received 200 shares on allotment, excess money being returned. All amounts due on allotment were received.
The first call was duly made and the money was received with the exception of the call due on 100 shares. .
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 15
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 16

Question 8.
Sumit Machine Ltd. issued 50,000 shares of ₹ 100 each at discount of 5%. The shares were payable ₹ 25 on application, ₹ 40 on allotment and ₹ 30 on first and final call. The issue was fully subscribed and money was duly received except the final call on 400 shares. The discount was adjusted on allotment.
Give journal entries and prepare the balance sheet.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 17
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 18
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 19

Question 9.
Kumar Ltd. purchased assets of ₹ 6,30,000 from Bhanu Oil Ltd. Kumar Ltd. Issued equity share of ₹ 100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par (b) at discount of 10%, and (c) at premium of 20%. ‘
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 20
Case (b).
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 21
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 22
Case (c)
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 23

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Question 10.
Bansal Heavy Machine Ltd. purchased machine worth ₹ 3,20,000 from Handa Trader. Payment was made as ₹ 50,000 cash and remaining amount by issue of equity shares of the face value of ₹ 100 each fully paid at an issue price of ₹ 90 each.
Give journal entries to record the above transaction.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 24
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 25

Question 11.
Naman Ltd. issued 20,000 shares of ₹ 100 each, payable ₹ 25 on application, ₹ 30 on allotment, ₹ 25 on first call and the balance on final call. All money duly received except Anubha, who holding 200 shares did not pay allotment and calls money and Kumkum, who holding 100 shares did not pay both the calls. The directors forfeited the shares of Anubha and Kumkum.
Give journal entries.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 26
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 27

Question 12.
Kishna Ltd. issued 15,000 shares of₹ 100 each at a premium of ₹ 1 per share payable as follows
On application ₹ 30
On allotment ₹ 50 [including premium]
On. first and final call ₹ 30
All the shares subscribed and the company received all the money due, with the ‘ exception of the allotment ahd call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share of ₹ 12 each.
Give journal entries in the books of the company.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 28
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 29

Note: In the Solution, the reissued price of ₹ 12 has been assumed as ₹ 120 per share.

Question 13.
Arushi computers Ltd. issued 10,000 equity shares of ₹ 100 each at 10% discount, amount payable as follows:
The net amount payable as follows:
On application ₹ 20
On allotment ₹ 30 (₹ 40 – discount ₹ 10)
On first call ₹ 30
On final call ₹ 10
A share holder holding 200 shares did not pay final call. His shares wer forfeited. Out of these 150 shares were reissued to Ms. Sonia at ₹ 75 per share.
Give journal entries in the books of the company.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 30
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 31
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 32
Working note:
Amount transferred to Capital Reserve A/c
Amount credited to Share forfeiture ₹ 80 per share
Less: Amount debited to Share Forfeiture ₹ 15 per share
Balance after adjustment ₹ 65 per share
Amount transferred to Capital Reserve Account = Balance per share after adjustment . x Number of shares reissued
₹ 9,750 = ₹ 65 x ₹ 150 per share

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Question 14.
Raunak Cotton Ltd. issued a prospectus inviting applications for 6,000 equity shares of ₹ 100 each at a premium of₹ 20 per shares, payable as follows:
On application ₹ 20
On allotment ₹ 50 (including premium)
On first call ₹ 30
On final call ₹ 20
Applications were received for 10,000 shares and allotment was made pro-rata to the applicants of 8,000 shares, the remaining applications being refused. 2017 – Money -received in excess on the application was adjusted toward the amount due on allotment. Rohit to whom 300 shares were allotted failed to pay allotment and calls money, his shares were forfeited. Itika, who, applied for 600 shares, failed to pay the two calls and her shares were also forfeited. All these shares were sold to Kartika as fully paid for ₹ 80 per share. , .
Give journal entries in the books of the company.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 33
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 34
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 35
Working Note:
1. Number of shares applied by Rohit
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 36

2. Call in arrears by Rohit on allotment
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 37

3.Number of share allloted to Itika
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 38

4: Share forfeiture amount
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 39

Question 15.
Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of ₹10 each at a premium of ₹2 per share payable as under
With Application ₹ 3 per share
On allotment (including premium) ₹ 5 per share
On First call ₹ 2 per share
On Second and Final call ₹ 2 per share
Applications were received for 1,60,000 shares. Allotment was made on prorata basis. Excess money on application was adjusted against the amount due on allotment. Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share.
Record journal entries and show the transactions relating to share capital in the company’s balance sheet.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 40
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 41
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 42
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 43

Question 16.
Prince Limited issued a prospectus inviting applications for 20,000 equity shares of₹ 10 each at a premium of ₹ 3 per share payable as follows:
With Application ₹ 2
On Allotment (including premium) ₹ 5
On First Call ₹ 3
On Second Call ₹ 3.
Applications were received for 30,000 shares and allotment was made on prorata basis. Money overpaid on applications was adjusted to the amount due on allotment. Mr. Mihit whom 400 shares were allotted, failed to pay the allotment money and the first call, and his shares were forfeited after the first call. Mr. Joly, whom 600 shares were allotted, failed to pay for the two calls and-hence, his shares were forfeited. Of the sharis forfeited were reissued to Supriya as fully paid for ₹ 9 per share, the whole of Mr. Mohit’s shares being included. Record journal entries in the books of the Company and prepare the Balance Sheet.
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 44
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 45
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 46
As per the Revised Schedule VI, the Balance Sheet of Prince Limited is as follows:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 47

2.
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 48

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Question 17.
Life Machine Tool’s Limited issued 50,000 equity shares of₹ 10 each at ₹ 12 per share, payable at to ₹ 5 on application (including premium, ₹ 4 on allotment and the balance on the first and final call.
Applications for 70,000 shares had been received. Of the cash received, ₹ 40,000 was returned and ₹ 60,000 was applied to the amount due on allotment. All shareholders paid the call due, with the exception of one shareholder of 500 shares. These shares were forfeited and reissued as fully paid at ₹ 8 per share. Journalise the transactions.
Answer:

2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 49
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 50
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 51
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 52

Question 18.
The Orient Company Limited offered for public subscription 20,000 equity shares of ₹ 10 each at a premium of 10% payable at ₹ 2 on application; ₹ 4 on allotment including premium; ₹ 3 on First Call and ₹ 2 on Second and Final call. Applications for 26,000 shares were received. Applications for 4,000 shares were rejected. Prorata allotment was made to the remaining applicants. Both the calls were made and all the money were received except tile final call on 500 shares which were forfeited. 300 of the forfeited shares were later reissued as fully paid at ₹ 9 per share. Give journal entries and prepare the balance sheet.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 53
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 54
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 55
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 56
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 57

Question 19.
Alfa Limited invited applications for 4,00,000 of its equity shares of ₹ 10 each on the following terms :
Payable on application ₹5 per share
Payable on allotment ₹-3 per share
Payable on first and final call ₹2 per share.
Applications for 5,00,000 shares were received. It was decided:
(a) to refuse allotment to the applicants for 20,000 shares;
(b) to allot in full to applicants for 80,000 shares;
(c) to allot the balance of the available shares’ pro-rata among the other applicants; and –
(d) to utilise excess application money in part as payment of allotment money. One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued ₹ 9 per share. Show the journal and prepare Cash book to record the above.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 58

Working Note: –

1. Number of shares applied by Applicant
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 78

2. Call in arrears by applicant on allotment .
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 59
3.
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 60
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 61

Question 20.
Ashoka Limited Company which had issued equity shares of ₹ 20 each at a discount of ₹ 4 per share, forfeited 1,000 shares for non-payment of final call of-₹ 2 per share. 400 of the forfeited shares were reissued at ₹ 14 per share out of till remaining shares of 200 shares reissued at ₹ 20 per share. Give journal entries for the forfeiture and reissue of shares and show the amount transferred to capital reserve and the balance in Share Forfeiture Account. .
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 62
Balance in Share Forfeiture Account (12,000 – 800 -.6,400) ₹ 4,800
Working Note:
For 400 Shares
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 63
Amount of 200 shares transferred to Capital Reserve Account, after reissue
= 200 shares ₹ 12 per share = ₹ 2,400
Total amount transferred to Capital Reserve = Capital Reserve for 200 shares + Capital Reserve for 200 shares
= 4,000 + 2,400 = ₹ 6,400

Question 21.
Amit holds 100 shares of ₹ 10 each on which he has paid Re. 1 per share as application money. Bimal holds 200 shares of ₹ 10 each on which he has paid Re. 1 and ₹ 2 per share as application and allotment money, respectively. Chetan holds 300 shares of ₹ 10 each and has paid Re. 1 on application, ₹ 2 on allotment and ₹ 3 for the first call. They all failed to pay their arrears and the second call of ₹ 2 per share and the directors, therefore, forfeited their shares. The shares are reissued subsequently for ₹ 11 per share as fully paid. Journalise the transactions.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 64
Working Note:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 65

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Question 22.
Ajanta Company Limited having a normal capital of ₹ 3,00,000, divided into shares of ₹ 10 each offered for public subscription of 20,000 shares payable at ₹ 2 on application; ₹ 3 on allotment and the balance in two calls of₹ 2.50 each. Applications were received by the company for 24,000 shares. Applications for 20,000 shares were accepted in full and the shares allotted. Applications for the remaining shares were rejected and the application money was refunded. All moneys due were received with the exception of the final call on 600 shares which were forfeited after legal formalities were fulfilled. 400 shares of the forfeited shares were reissued at ₹ 9 per share. Record necessary journal entries and prepare the balance sheet showing the amount transferred to capital reserve and the balance h share forfeiture account.
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 66
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 67
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 68
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 69
Amount of 400 shares transferred to capital Reserve Account, after reissue = 400 Shares @ ₹ 6.5 per share -₹ 2,600

Question 23.
Journalise the following transactions in the books Bhushan Oil Ltd:
(a) 200 shares of ₹ 100 each issued at a discount of ₹ 10 were forfeited for the nonpayment of allotment money of ₹ 50 per share. The first and final call of ₹ 20 per share on these shares were not made. The forfeited shares were reissued at ₹70 per share as fully paid-up.
(b) 150 shares of ₹10 each issued at a premium of ₹ 4 per share payable with allotment >. were forfeited for non-payment of allotment money of ₹ 8 per share including
premium. The first and final calls of ₹ 4 per share were not made. The forfeited shares were reissued at ₹ 15 per share fully paid-up.
(c) 400 shares of₹ 50 each issued at par were forfeited for non-payment of final call of ₹10 per share. These shares were reissued at ₹ 45 per share fully paid-up.
Answer:
Case (a)
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 70

Case (b)
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 71

Case (c)
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 72

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Question 24.
Amisha Ltd. invited applications for 40,000 share of ₹ 100 each at a premium of ₹ 20 per share payable on application ₹ 40 ; on allotment ₹ 40 (Including premium): on first call ₹ 25 and second and final call ₹ 15. Applications were received for 50,000 shares and allotment was made on prorata basis. Excess money on application was adjusted against the sums due on allotment. Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited after allotment. Ashmita, who applied for 1,000 shares failed to pay the two calls and her shares were forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for ₹ 85 per sh&re as fully paid, the whole of Rohit’s shares being included.
Record necessary journal entries
Answer:
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 73
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 74
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 79
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 75
Working Note
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 76

3. Number of shares allotted to Ashmita
2nd PUC Accountancy Question Bank Chapter 1 Accounting for Share Capital - 77

4. Profit on the forfeiture of 600 share of Rohit  = ₹ 30.000 (18,000 x \(\frac{600}{800}\) x 36,000)
Profit on the forfeiture of 600 share of Ashmita = 36,000
Profit on forfeiture of 1200 shares (30,600 + 36,000) = 66,000
Less: Loss on reissue of shares = 18,000
Transfer to Capital Reserve = 48,000
Balance in Share forfeiture Account (48,000 – 36,000) = ₹ 12,000

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2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement

You can Download Chapter 6 Cash Flow Statement 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 6 Cash Flow Statement

2nd PUC Accountancy Cash Flow Statement NCERT Textbook Questions and Answers

2nd PUC Cash Flow Statement Short Answer Questions With Answers

Question 1.
What is a Cash Flow Statement?
Answer:
A Cash Flow Statement is a statement showing inflows and outflows of cash and cash equivalents from operating, investing and financing activities of a company during a particular period. It explains the reasons of receipts and payments in cash and change in cash balances during an accounting year in a company.

Question 2.
How are the various activities classified (as per AS-3 revised) while preparing cash flow statement?
Answer:
As per the Revised Accounting Standard 3 (AS-3), preparation of Cash Flow
Statement for each period is mandatory. AS-3 also specifies the classification of all inflows and outflows basically under the following heads:

  • Cash Flow from Operating Activities
  • Cash Flow from Investing Activities
  • Cash Flow from Financing Activities

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Question 3.
State the uses of cash flow statement?
Answer:
The uses of cash flow statement are as follows:

  • It is useful for short term financial planning about inflows and outflow of cash
  • It helps in analysing the reason for the change in cash and cash equivalent balances of a company
  • It assists in determining and assessing liquidity and solvency positions of a company.
  • It enables to analyse and study the trends of receipts and payments of cash from various activities of a company and thereby helps in drafting various policy measures and short term planning.
  • It enables the segregation of cash flows from operating, investing and financing activities of the business separately.
  • It assists in making decision about distribution of profit with reference to the availability of cash.

Question 4.
What are the objfectives of preparing cash flow statement?
Answer:
The important objectives for preparing Cash Flow Statement are as follows:
The most important objective that is fulfilled by preparing Cash Flow Statement is to ascertain the gross inflows and outflows of cash and cash equivalents from various activities.
Secondly, Cash Flow Statement helps in analysing various reasons responsible for change in the cash balances during an accounting year.

Cash Flow Statement also helps in ascertaining the requirement and availability of cash in near future.
This statement helps in analysing and understanding the liquidity and solvency of a company, thereby, depicting the true liquidity position to the Creditors and the investors.

Question 5.
Explain the terms Cash Equivalents and Cash flows.
Answer:
Cash equivalents: Cash equivalents are short term, highly liquid investments that are easily convertible into cash and which are subject to an insignificant risk of change in value. In other words, cash equivalents are held for the purpose of meeting short term cash commitments rather than for investment or any other purpose. An investment held for short-term maturity, say three months can be regarded as cash equivalent. Some examples of cash equivalents are treasury bills, commercial papers, etc.

Cash flows: cash flows are inflows and outflows of cash and cash equivalents.
A cash inflow results in increase in the total cash balance and a cash outflow results in decrease in the total cash balance.
Prepare a format of cash flow from operating activities under direct method and indirect method.

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 1
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 2

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Question 6.
Now that you know the meaning of operating activities, state clearly what would constitute the operating activities for the following types of enterprises?
(a) Hotel
(b) Film production house
(c) Financial enterprise
(d) Media enterprise
(e) Steel manufacturing unit
(f) Software business unit
Answer:
(a) Hotels

  1. Receipts from sale of goods to customer
  2. Payment pf wages and salaries, electricity, food items and other items used in accommodation

(b) Film production house

  1. Receipts from selling film rights of a film to the distributors
  2. Payment to the staff, actors, actresses, directors, etc.

(c) Financial enterprise

  1. Receipts from repayment of loans, interest incomes from investments; etc
  2. Repayments of loans, recovery expenditure for recover of loans etc, salaries of employees

(d) Media enterprise

  1. Receipts from advertisements
  2. Payments to staff, reporters, photographers, etc

(e) Steel manufacturing unit

  1. Receipts from sale of steel sheets, steel castings, steel rods, etc
  2. Payment for iron, coal, salaries to staff, etc

(f) Software business unit

  1. Receipts from sale of software and renewal of licenses
  2. Payment of salaries to their employees, etc

Question 7.
The nature/type of enterprise can change altogether the category into which a particular activity may be classified. Do you agree? Illustrate your answer.
Answer:
Yes, the nature or type of an enterprise can change altogether the category into which a particular activity may be classified. This can be better understood with the help of an example of two firms. One engaged in real estate and the other engaged in general business.

For the firm that is engaged in real estate business purchase and sales of building will be part of the operating activity on the other hand firm that is engaged in general business purchase and sales of building will be part of the investing activity. Hence it can be said that the classification of activities depends on the nature and type of enterprise.

2nd PUC Cash Flow Statement Long Answer Questions With Answers

Question 1.
Describe the procedure to prepare Cash Flow Statement.
Answer:
The procedure to prepare Cash Flow Statement is described in the following steps in their chronological order. ‘
Step 1: Ascertain the cash flows from operating activities
Step 2: Ascertain the cash flows from investing activities
Step 3: Ascertain the cash flows from financing activities
Step 4: Ascertain net increase or decrease by summing up the amounts of Steps 1, 2, and 3.
Step 5: Write the opening balance of cash and cash equivalents and deduct it from the amount ascertained in Step 4. The resulting figure arrived is the Closing Balance of Cash and Cash Equivalents.
Describe ‘Direct’ and ‘Indirect’ methods of ascertaining Cash Flow from Operating Activities.
As per the Accounting Standard 3 issued by the Institute of Chartered
Accountant of India, an enterprise should report cash flows from operating activities Using either of the following methods:

Direct Method: It represents the cash receipts from debtors (customers) and customers and cash payments to creditors (sellers) and employees. It
assists in estimating future cash flows. The excess of cash payments over cash.receipts is known as Net Cash Flow of Operating Activities.
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 3

Indirect Method: This method starts with the Net Profit before tax and extraordinary items. For this purpose, the Net Profit as revealed by the Profit and Loss Account cannot be taken into consideration as there exists some items which do not leads to outflow of cash. The following are those items that need to be added back to the Net Profit of the Profit and Loss Account.
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 4

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Question 2.
Explain the major Cash Inflow and outflows from investing activities.
Answer:
Investing activities are those activities that are related to sales and purchases of long-term fixed assets like, land and building, plant and machinery, furniture, etc. These fixed assets are not held for resale. The activities like sale and purchase of investments that are not included in the cash equivalents are also included in investing activities. Any income arising from such investments (assets) are regarded a part of investing activities.

As per the AS3, the major cash inflows and outflows from investing activities are as follows:
(a) Cash payments to acquire fixed assets (including intangibles like, goodwill). These payments include capitalised cost of research and development and self-constructed fixed assets.

(b) Cash receipts from disposal of fixed assets (including intangible assets).

(c) Cash payments to acquire shares, warrants, or debt instruments of other enterprises and interest in joint venture (other than payments of those instruments consider as cash equivalents and are held for the trading purposes).

(d) Cash receipts from disposal of shares, warrants or debt instruments of other enterprises and interest from joint ventures (other than receipts from those held for trading purposes).

(e) Cash advances and loans made to third parties (other than advances, and loans made by financial enterprises). These will be treated as cash flows from the operating activities.

(f) Cash receipts from repayment of advances and loans made to third parties (other than advances and loans of financial enterprises). These will be treated as cash flows from operating activities.

(g) Cash receipts from insurance company for any property involved in accident.

(h) Any income arising from fixed assets or investments like interest, dividend, rent etc. In case of financial enterprises interest and dividend is treated as operating activities.

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 5

Question 3.
Explain the major Cash Inflows and outflows from financing activities.
Answer:
Financing activities are those activities that are related to capital or long term funds of an enterprise. These activities results in the change in the capital and borrowed funds.
As per the AS3, the major cash inflows from financing activities are as follows:
Cash proceeds from issue of shares and other similar instruments.
Cash proceeds from issue of debentures, loans, notes, bonds, and other short and long-term borrowings.

As per the AS3, the major cash outflows from financing activities are as follows: Cash repayments of the amount borrowed in form of debentures, loans, notes bonds, and other short and long-term borrowings.
Buy-back of shares and debentures.
Interest paid on debentures, loans, and advances.
Dividend paid to the preference shareholders and equity shareholders.

An important point that must be noted is that the purchase and sale of securities, interest paid or received and dividend received is treated as cash flow from operating activities for an investment company. But dividend paid is treated as cash flow from financing activities.

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 6

2nd PUC Cash Flow Statement Numerical Questions

Question 1.
Anand Ltd., arrived at a net income of ₹ 5,00,000 for the year ended March 31, 2014. Depreciation for the year was ₹ 2,00,000. There was a profit of ₹ 50,000 on assets sold which was transferred to Statement of Profit and Loss account. Trade Receivables. increased during the year ₹ 40,000 and Trade Payables also increased by ₹ 60,000. Compute the cash flow from operation activities by the indirect approach.
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 7

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Question 2.
From the information given below you are required to calculate the cash paid for the inventory:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 8
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 9

Question 3.
For each of the following transactions, calculate the resulting cash flow and state the nature of cash flow, viz., operating, investing and financing.
(a) Acquired machinery for ₹ 2,50,000 paying 20% by cheque and executing a bond for the balance payable.
(b) Paid ₹ 2,50,000 to acquire shares in Informa Tech, and recti da dividend of ₹ 50,000 after acquisition;
(c) Sold machinery of original cost ₹ 2,00,000 with an accumulated depreciation of ₹ 1.60.0 for ₹ 60,000.
Answer:
(a) Part payment ₹ 50,000 for acquiring machinery ₹ 2,50,000 is related with Investing Activities
(b)
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 10
Amount paid to acquire assets and dividend received is a part of Investing Activities.
(c) Inflow of cash of ₹ 60.000 on sale of machinery is a part Investing Activities.

Question 4.
The following is the Profit and Loss Account of Yamuna Limited:
Statement of Profit and Loss of Yamuna Ltd., for the year ended March 31, 2015

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 11
Additional information:

  1. Trade receivables decrease by ₹ 30,000 during the year.
  2. Prepared expenses increase by ₹ 5,000 during the year.
  3. Trade payables increase by ₹ 15,000 during the year.
  4. Outstanding Expenses payable increased by ₹ 3,000 during the year.
  5. Other expenses included depreciation of ₹ 25,000.
    Compute net cash from operations for the year ended March 31, 2014 by the indirect method.

Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 12

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Question 5.
Compute cash from operations from the following figures:

  • Profit for the year 2014-15 is a sum of ₹ 10,000 after providing for depreciation of ₹ 2,000
  • “The current assets of the business for the year ended March 31, 2014 and 2015 are as follows:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 13
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 14

Question 6.
From the following particulars of Bharat Gas Limited, calculate cash flows from Investing Activities. Also show the workings clearly Preparing the ledger accounts:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 15
Balance Sheet of Bharat Gas Ltd., as on
Notes:

  • Tangible assets Machinery
  • Intangible assets = Patents

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 16
Additional Information:
(a) Patents were written-off to the extent of ₹ 40,000.and some a profit of ₹ 20,000.
(b) A Machine costing ₹ 1,40,000 (Depreciation provided there on ₹ 60,000) was sold for ₹ 50,000. Depreciation charged during the year was ₹ 1,40,000.
(c) On March 31, 2014, 10% Investments were purchased for ₹ 1,80,000 and sonic Investments were sold at profit of ₹ 20,000. Interest on Investment was received on March 31, 2015.
(d) Amartax Ltd. paid Dividend @ 10% on its shares.
(e) A plot of land had been purchased for investment purposes and let out for commercial use and rent received ₹ 30,000.
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 17

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2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 18

Question 7.
From the following Balance Sheet of Mohan Ltd., prepare cash Balance Sheet of Mohan Ltd., as at 31st March 2014 and 31st March 2015 flow Statement:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 19
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 20
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 21
Additional Information:
Machine Costing ₹ 80,000 on which accumulated depreciation was Rs. 50,000 was sold for ₹ 20,000.
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 22
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 23
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 24

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Question 8.
From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 25
Notes to accounts:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 26
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 27
Additional Information: Depreciation Charge on Land & Building ₹ 20,000, and Plant ₹ 10,000 due the year.
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 28
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 29

Question 9.
From the following information, prepare cash flow statement:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 30
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 31
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 32

Question 10.
From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 33
Notes of accounts:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 34
Additional Information: Net Profit for the year after charging ₹ 50,000 as Depreciation was ₹ Dividend paid on Share was ₹ 50,000, Tax Provision created during the year amounted to Rs 60,000.
Answer:

2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 35
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 36

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Question 11.
Following is the Financial Statement of Garima Ltd., Prepare cash flow statement.
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 37
Notes to accounts:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 38
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 39
Additional Information:
1. Interest paid on Debenture ₹ 600
2. Dividend paid during the year ₹ 4,000
3. Depreciation charged during the year ₹ 32,000
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 41
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 42

Question 12.
From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 43
Notes to accounts:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 44
Additional Information:
Interest paid on Debenture ₹ 600
Answer:
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 45
2nd PUC Accountancy Question Bank Chapter 6 Cash Flow Statement - 46

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2nd PUC Physics Question Bank Chapter 15 Communication Systems

You can Download Chapter 15 Communication Systems Questions and Answers, Notes, 2nd PUC Physics Question Bank with Answers, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

2nd PUC Physics Question Bank Chapter 15 Communication Systems

2nd PUC Physics Chapter 15 Communication Systems NCERT Text Book Questions and Answers

Question 1.
Which of the following frequencies will be suitable for beyond the horizon communication using sky waves?
(a) 10 kHz
(b) 10 MHz
(c) 1 GHz
(d) 1000 GHz
Answer:
At frequencies above 40 MHz, the communication is limited to line of sight paths. Hence, options (a) and (b) are correct.

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Question 2.
Frequencies in the UHF range normally propagate by means of:
(a) Ground waves.
(b) Skywaves.
(c) Surface waves.
(d) Space waves.
Answer:
In the UHF range, the transmission is done by means of space waves. Hence, option (d) is correct.

Question 3.
Digital signals
(i) do not provide a continuous set of values,
(ii) represent values as discrete steps,
(iii) can utilize a binary system, and
(iv) can utilize decimal as well as binary systems.
Which of the above statements are true?
(a) (i) and (ii) only
(b) (ii) and (iii) only
(c) (i), (ii) and (iii) but not (iv)
(d) All of (i), (ii), (iii) and (iv).
Answer:
For digital signals, all four options are true. Hence the option (d) is correct.

Question 4.
Is it necessary for a transmitting antenna to be at the same height as that of the receiving antenna for line-of-sight communication? A TV transmitting antenna is 81m tall. How much service area can it cover if the receiving antenna is at the ground level?
Answer:
For the line of sight communication, the receiving antenna must intercept the transmitted signal. If the signal is to be received. beyond the horizon, the receiving antenna must be high enough to intercept the transmitted signal. Therefore, it is not necessary for a transmitting antenna to be at the same high as that of the receiving antenna.
Here, h = 81m; R = 6.4 x 106 m If d is the radius of the circle within which the transmission can be observed, then
2nd PUC Physics Question Bank Chapter 15 Communication Systems 1

Question 5.
A carrier wave of peak voltage 12V is used to transmit a message signal. What should be the peak voltage of the modulating signal in order to have a modulation index of 75%?
Answer:
Here, Ec = 12V, ma = 75% = 0.75
Now, modulation factor,
2nd PUC Physics Question Bank Chapter 15 Communication Systems 2

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Question 6.
A modulating signal is a square wave, as shown in Fin. 15.14.
2nd PUC Physics Question Bank Chapter 15 Communication Systems 3
The carrier wave is given by c (t) = 2sin (8 π t) volts.
(i) Sketch – the amplitude modulated waveform
Answer:
(i) Here, c (t) = 2 sin 8 n t
It follows that the carrier is a sine wave having a period of T = 2π/8π = 0.25 s and amplitude of EC = ±2V
On the other hand, the modulating signal is a square wave of period 1s and amplitude of E = ±1V.
Therefore, the maximum and minimum amplitude of the modulated waveform will be
2nd PUC Physics Question Bank Chapter 15 Communication Systems 4
Hence the amplitude modulated waveform will be as
2nd PUC Physics Question Bank Chapter 15 Communication Systems 5

Question 7.
For an amplitude modulated wave, the maximum amplitude is found to be 10V while the minimum amplitude is found to be 2V. Determine the modulation index μ. What would be the value of p if the minimum amplitude is zero volts?
Answer:
2nd PUC Physics Question Bank Chapter 15 Communication Systems 6
2nd PUC Physics Question Bank Chapter 15 Communication Systems 7

Question 8.
Due to economic reasons, only the upper sideband of an AM wave is transmitted, but at the receiving station, there is a facility for generating the carrier. Show that if a device is available which can multiply two signals, then it is possible to recover the modulating signal at the receiver station.
Answer:
When only the upper sideband (we + wm) is transmitted, the transmitted signal may be represented as
e = Et cos (we + wm )t   ………………(1)
where is the amplitude of the transmitted signal Let the carrier wave available at the receiving station be
e =Ec cos wct  ……………(2)
where,
Ec is the amplitude of the carrier wave Multiplying the respective sides of equations (1) and (2).
2nd PUC Physics Question Bank Chapter 15 Communication Systems 8
If this signal is passed through a filter circuit, which acts as a block for the higher frequency (2we + wm) and allows the low frequency to pass through it, then the modulating signal given by,
2nd PUC Physics Question Bank Chapter 15 Communication Systems 9
can be recovered at the receiving station

2nd PUC Physics Chapter 15 Communication Systems Additional Questions and Answers

Question 1.
The audio signal can not be transmitted directly into space. Why?
Answer:

  • The length of the antenna required is so large (500m) that is practically impossible to set up it.
  • The energy radiated from the antenna in ‘ audio frequency range is practically zero
  • The audio signals transmitted from the different broadcasting stations get inseparably mixed up.

Question 2.
600 Hz modulating voltage fed into FM generator produces a frequency deviation of 3.36 kHz. Find the modulation index.
Answer:
Modulating frequency, FM = 600 Hz Frequency deviation,
2nd PUC Physics Question Bank Chapter 15 Communication Systems 10

Question 3.
Why is an FM signal less susceptible to noise than an AM signal?
Answer:
In FM transmission, the message signal is in the form of frequency variations of carrier waves. During the modulation process, the noise gets amplitude modulated. Since it brings about variations only in the amplitude of carrier waves, it does no harm to the message signal. For this reason, an FM signal is less susceptible to noise than an AM signal.

Question 4.
The ozone layer is present in
(A) Troposphere
(B) stratosphere
(C) Ionosphere
(D) Mesosphere
Answer:
(B) stratosphere

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Question 5.
What is the cause of the greenhouse effect?
(A) IR rays
(B) UV rays
(C) x-rays
(D) Radio waves
Answer:
(A) IR rays

Question 6.
Communication on the ground is through electromagnetic waves of wavelength
(A) Larger than 600m
(b) Between 200 and 600m
(C) Between 1 and 5m
(D) Between 10-13 and 0.1m
Answer:
(D) Between 10-13 and 0.1m

Question 7.
The maximum distance upto which TV transmission from a TV tower of height h can be received is proportional to
(A) h1/2
(B) h3/2
(C) h
(D) h2
Answer:
(D) h2

Question 8.
The output from a LASER is monochromatic. It means that it is
(A) Directional
(B) Polarised
(C) Narrow beam
(D) Single-frequency
Answer:
(D) Single-frequency

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Question 9.
Losses in optical fiber are caused by
(A) Impurities in glass
(B) Imperfect transparency of the glass
(C) Its extremely small area of cross-section
(D) Stepped index structure
Answer:
(A) Impurities in glass

Question 10.
The number of geostationary satellites needed for uninterrupted global coverage is
(A) 3
(B) 4
(C) 1
(D) 2
Answer:
(A) 3

2nd PUC Economics Question Bank Chapter 12 Open Economy Macroeconomics

You can Download Chapter 12 Open Economy Macroeconomics Questions and Answers, Notes, 2nd PUC Economics Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Economics Question Bank Chapter 12 Open Economy Macroeconomics

2nd PUC Economics Open Economy One Mark Questions and Answers

Question 1.
What is closed economy?
Answer:
A closed economy is that which does not have any trade links with other countries of the world. It completely prohibits the import and export trade.

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Question 2.
Give the meaning a foriegn trade.
Answer:
Foriegn trade refers to trade between 2 or more countries.

Question 3.
Write the meaning of open economy?
Answer:
An open economy is that economy which has all kinds of economic relations with other countries of the world. It allows exports and import trade.

Question 4.
What is Balance of Trade?
Answer:
Balance of Trade refers to the difference between the value of visible items of exports and imports, during a particular period of time.

Question 5.
Give the meaning of exchange rate.
Answer:
The exchange rate refers to the rate at which the currency of one country is exchanged for currency of another country.

Question 6.
What is Flexible Exchange Rate?
Answer:
The Flexible Exchange Rate is that exchange rate which keeps on changing. This type of exchange is determined by market forces of demand and supply.

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2nd PUC Economics Open Economy Two Marks Questions and Answers

Question 1.
State the differences between Closed and Open Economies.
Answer:

Closed Economy

Open Economy

(i) A closed economy is that which does not have any trade links with other countries of the world. (i) An open economy is that economy which has all kinds of economic relations with other countries of the world.
(ii) It completely prohibits import and export trade. (ii) It allows for export and import trade.
(iii) It is policy of protection which between domestic and foreign goods. (iii) It is free trade policy and allows the inflow and outflow of foreign direct investment. (FDI)

Question 2.
What is meant by multilateral trade?
Answer:
Multilateral trade refers to that type of trade in which three or more groups of countries are involved in trade. Trade activities take place among the nations without any discrimination. Here all countries are treated equally.

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Question 3.
Differentiate between Balance of Trade and Balance of Payments.
Answer:

Balance of Trade

Balance of Payments

(i) It refers to the difference between the value of exports and imports of only visible items, during a particular period of time. (i) It refers to difference between the value of exports and imports of both visible and invisible items, during a particular of time.
(ii) It is a narrow concept. (ii) It is a broader concept.
(iii) It may not show the international economic position of an economy. (iii) It shows the international economic position of the country.
(iv) It gives partial picture of international transactions. (iv) It gives a complete picture of international transactions.

Question 4.
Distinguish between Nominal and Real Exchange rates.
Answer:

Nominal Exchange rate

Real Exchange rate

(i) It is expressed in terms of money. (i) It is the ratio of foreign prices to domestic prices.
(ii) It is the amount of domestic currency paid to purchase one unit of foreign currency. (ii) It is expressed in terms of purchasing power of both the currencies.

Question 5.
What do you mean by fixed exchange rate?
Answer:
The fixed exchange rate is that exchange rate which is fixed by the monetary authority. Any deviation from the predetermined level of exchange rate would be corrected by the immediate intervention of the Central Bank.

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2nd PUC Economics Open Economy Five Marks Questions and Answers

Question 1.
Explain the structure of balance of payments.
Answer:
The structure of India’s balance of payments is divided in to two parts.
(1) Current account and
(2) Capital account.

(1). Current account: All transactions relating to trade in goods, services and unilateral transfers are the part of Balance of payment on current account. It refers to the statement of country’s exporting of goods and services with all other countries in the world for specific period.

(a) Visible or merchandise trade relating to imports and exports: Visible or merchandise trade relating to imports and exports is an important item in current account. All those transactions in goods only are included in this.

(b) Invisible exports and imports: Invisible exports and imports includes all those trading activities relating to services (Insurance, transport, banking, etc)

(c) Unilateral transfers: Unilateral transfers are part of current account includes donations, gifts, foreign aid, etc.

The structure of current account in Balance of Payment is as follows
Current account

Items

Items

(i) Merchandise Trade – Goods and exported to other countries. (i) Merchandise trade – Goods imported from other countries
(ii) Invisibles – Services exported. (ii) Invisibles- Services imported.
(iii) Unilateral receipts – gifts donations received from other countries. (iii) Unilateral payments – gifts, donations paid to other countries.

(2). Capital Account: The capital account in the balance of payment consists of all the financial transactions in assets of lending and borrowing for both short term and long term. It relates to movement of international capital having maturity of at-least one year. It shows the flow of international loans and investments and reflects the changes in country’s foreign assets and liabilities. Private and Government transactions are two types of transactions. Direct investments, portfolio and short term investments are in private transactions. Loans to and from foreign official agencies are in Government transactions.

To sum up, the Current Account includes the following

  • Short term Capital Movements and
  • Long term Capital Movements

Capital account

Particulars

Particulars

(i) Loans and advances borrowed from other countries and Foreign Direct Investments

Repayment of loans from foreign countries

(i) Loans and advances given to other countries and direct investment in other countries.

Repayment of loans to foreign countries

(ii) Sale of gold/assets (ii) Purchase of gold/assets

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Question 2.
Explain the theories of determination of exchange rate.
Answer:
There are two important theories which explain the determination of exchange rate viz.,

  1. The Purchasing Power Parity Theory (PPP)
  2. The Balance of Payment Theory.

(1) The Purchasing Power Parity Theory: The purchasing power parity theory was advocated by the Swedish Economist Gustav Cassel. According to this theory, equilibrium exchange rate between two inconvertible paper currencies is determined by the equality of their purchasing power. In other words, the rate of exchange between two countries is determined by their relative price levels.

According to the theory, the exchange rate between two countries is determined at a point which expresses the equality between the respective purchasing powers of the two currencies. This is the purchasing power parity which is a moving par and not a fixed par as under the gold standard. Thus with every change in the price level, the exchange rate, also changes. To calculate the new equilibrium exchange rate, the following formula is used:

2nd PUC Economics Question Bank Chapter 12 Open Economy 1

(b) Balance of payments theory: According to this theory, the foreign exchange rate, under free market conditions, is determined by the conditions of demand and supply in the foreign exchange market. Under free exchange rates, the exchange rate of the currency of a country depends upon its balance of payments. A favourable balance of payments raises the exchange rate, while an unfavourable balance of payments reduces the exchange rate. Thus the theory implies that the exchange rate is determined by the demand for and supply of foreign exchange.

When the balance of payments is in equilibrium, the supply of and demand for the currency are equal. If the exchange rate falls below the equilibrium exchange rate in a situation of adverse balance of payments, exports increase and the adverse balance of payments is eliminated and the equilibrium exchange rate is re-established.

Under a favourable balance of payment situation, the exchange rate rises above the equilibrium exchange rate, exports decline, the favourable balance of payments disappears and the equilibrium exchange rate is re-established. Thus at any point of time, the rate of exchange is determined by the demand for and supply of foreign exchange as represented by the debit and credit side of the balance of payments.

Question 3.
What are the exchange rate systems?
Answer:
The major exchange rate systems are as follows:

(a) Flexible Exchange Rate: A flexible, floating or fluctuating exchange rates are determined by market forces. The monetary authorities do not intervene for the purpose of influencing the exchange rate. Under freely fluctuating exchange rates, if there is an excess supply of a currency, the value of that currency in foreign exchange markets will fall. It will lead to depreciation of the exchange rate. Consequently equilibrium will be restored in the exchange market.

If there is shortage of currency, it will lead to the appreciation of exchange rate and . thereby leading to restoration of equilibrium in the exchange market. These market forces
operate automatically without any action on the part of monetary authorities.

(b) Fixed Exchange Rate: It is also called pegged exchange rate. Under this type of exchange rate, all exchange transactions take place at an exchange rate that is determined by the monetary authorities. The authorities may fix the exchange rate by legislation or intervention in currency markets. They buy or sell currencies according to the needs of the country or may take policy decision to appreciate or depreciate the national currency

For instance, if there is too much fluctuation in exchange rate in exchange market, the RBI may interfere and fix the rate of exchange of foreign currencies.

(c) Managed floating system: This system of exchange rate is a mixture of flexible and fixed exchange rate systems. Here, the exchange rate is fixed by the market forces viz., demand and supply. But, the statutory monetary authority (Reserve Bank of India) determines upper and lower limit of exchange rates. When the exchange changes beyond maximum and minimum limits, the central monetary authority intervenes and brings the exchange rate will within the predetermined limits.

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2nd PUC Economics Open Economy Ten Marks Questions and Answers

Question 1.
What is Balance of Payments? Explain the structure of Balance of Payments.
Answer:
Balance of Payments refers to difference between the value of exports and imports of both visible and invisible items, during a particular duration of time. It shows international economic position of the country. It gives complete picture of international transactions.

The structure of India’s balance of payments is divided in to two parts.
(1) Current account
(2) Capital account

1. Current account: All transactions relating to trade in goods, services and unilateral transfers are the part of Balance of payment on current account. It refers to the statement of country’s exporting of goods and services with all other countries in the world for a specific period.

(a) Visible or merchandise trade relating to imports and exports: Visible or merchandise trade relating to imports and exports is an important item in current account. All those transactions in goods only are included in this.

(b) Invisible exports and imports: Invisible exports and imports includes all those trading activities relating to services (Insurance, transport, banking, etc)

(c) Unilateral transfers: Unilateral transfers are part of current account that include donations, gifts, foreign aid, etc.
The structure of current account in Balance of Payment is as follows

Items

Items

(i) Merchandise Trade – Goods and exported to other countries. (i) Merchandise trade – Goods imported from other countries
(ii) Invisibles – Services exported. (ii) Invisibles- Services imported
(iii) Unilateral receipts – gifts donations received from other countries (iii) Unilateral payments- gifts, donations paid to other countries.

(2) Capital Account: The capital account in the balance of payment consists of all the financial transactions in assets of lending and borrowing for both short term and long term. It relates to movement of international capital having maturity of at-least one year. It shows the flow of international loans and investments and reflects the changes in countries’ foreign assets and liabilities. Private and Government transactions are two types of transactions. Direct investments, portfolio and short term investments are in private transactions. Loans to and from foreign official agencies are in Government transactions.

To sum up, the Current Account includes the following

(i) Loans and advances borrowed from other countries and Foreign Direct Investments (i) Loans and advances given to other countries and direct investment in other countries.
(ii) Repayment of loans from foreign countries (ii) Repayment of loans to foreign countries
(iii) Sale of gold/assets (iii) Purchase of gold/assets

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2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics: Materials, Devices and Simple Circuits

You can Download Chapter 14 Semiconductor Electronics: Materials, Devices and Simple Circuits Questions and Answers, Notes, 2nd PUC Physics Question Bank with Answers, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics: Materials, Devices and Simple Circuits

2nd PUC Physics Semiconductor Electronics: Materials, Devices and Simple Circuits NCERT Text Book Questions and Answers

Question 1.
In an n-type silicon, which of the following statement is true:
(a) Electrons are majority carriers and trivalent atoms are the dopants.
(b) Electrons are minority carriers and pentavalent atoms are the dopants.
(c) Holes are minority carriers and pentavalent atoms are the dopants.
(d) Holes are the majority carriers and trivalent atoms are the dopants.
Answer:
An n-type semiconductor is obtained by doping a semiconductor with a pentavalent impurity. The impurity so added produces free electrons. Therefore, in an n-type semiconductor, the electrons are majority carriers and holes are minority carriers and pentavalent atoms are the dopants. Hence, option (c) is correct.

Question 2.
Which of the statements given in Exercise 14.1 is true for p-type semiconductors.
Answer:
A p-type semiconductor is obtained by doping a semiconductor with a trivalent impurity. The impurity so added produces holes. Therefore, in a p-type semiconductor holes are the majority carriers and trivalent atoms are the dopants. Hence, option (d) is correct.

Question 3.
Carbon, silicon, and germanium have four valence electrons each. These are characterized by valence and conduction bands separated by energy bandgap respectively equal to (Eg)c, (Eg)Si, and (Eg)Ce. Which of the following statements is true?
(a) (Eg)Si < (Eg)Ge < (Eg)c
(b) (Eg)c < (Eg)Ge > (Eg)Si
(c) (Eg)c > (Eg)Si > (Eg)Ge
(d) (Eg)c = (Eg)Si = (Eg)Ge
Answer:
Carbon is an insulator and hence the value of the energy bandgap is maximum for it. Of the other two semiconductors, the value of the energy bandgap for germanium is lesser. Hence, option (c) is correct.

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Question 4.
In an unbiased p-n junction, holes diffuse from the p-region to the n-region because
(a) Free electrons in the n-region attract them.
(b) They move across the junction by the potential difference.
(c) Hole concentration in p-region is more as compared to n-region.
(d) All the above.
Answer:
In an unbiased p-n junction, hole concentration in p-region is more as compared to n-region. Hence, option (c) is correct.

Question 5.
When a forward bias is applied to a p-n junction, it
(a) Raises the potential barrier.
(b) Reduces the majority carrier current to zero.
(c) Lowers the potential barrier.
(d) None of the above.
Answer:
When a p-n junction is forward biased, the applied voltage opposes the barrier voltage across the junction. As a result, the potential barrier gets lowered. Hence the option (c) is correct.

Question 6.
For transistor action, which of the following statements are correct:
(a) Base, emitter, and collector regions should have similar size and doping concentrations.
(b) The base region must be very thin and lightly doped.
(c) The emitter junction is forward biased and the collector junction is reverse biased.
(d) Both the emitter junction as well as the collector junction are forward biased.
Answer:
When the emitter junction is forward biased, electron-hole recombination takes place, the base region. To ensure that only a small amount (about 50%) of electron-hole recombination may take place the base is made thin and lightly doped. Hence the option (b) is correct.

Question 7.
For a transistor amplifier, the voltage gain
(a) Remains constant for all frequencies.
(b) Is high, at high and low frequencies, and constant in the middle frequency range.
(c) Is low at high and low frequencies and constant at mid frequencies.
(d) None of the above.
Answer:
In a transistor, the voltage gain is high at high and low frequencies and constant at mid frequencies. Hence the option (c) is correct.

Question 8.
In half-wave rectification, what is the output frequency if the input frequency is 50 Hz? What is the output frequency of a full-wave rectifier for the same input frequency?
Answer:
50 Hz for half wave, 100 Hz for full-wave.

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Question 9.
For a CE-transistor amplifier, the audio signal voltage across the collected resistance of 2kΩ is 2 V. Suppose the current amplification factor of the transistor is 100, find the input signal voltage and base current if the base resistance is 1 kΩ.
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 1

Question 10.
Two amplifiers are connected one after the other in series (cascaded). The first amplifier has a voltage gain of 10 and the second has a voltage gain of 20. If the input signal is 0.01 volt, calculate the output ac signal.
Answer:
When the amplifiers are connected in series, the net voltage gain (Av) is equal to the product of the gains of the individual amplifiers i.e.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 2

Question 11.
A p-n photodiode is fabricated from a semiconductor with a bandgap of 2.8 eV. Can it detect a wavelength of 6000 nm?
Answer:
Here, λ = 600 nm = 600 x 10-9m
Therefore, the energy associated with the wavelength,
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 3
As the energy associated with the wavelength is less than the bandgap energy of the semiconductor, it can’t detect this wavelength.

2nd PUC Physics Semiconductor Electronics: Materials, Devices and Simple Circuits Additional Exercises

Question 12.
The number of silicon atoms per m3 is 5 x 1028. This is doped simultaneously with
5 x 1022 atoms per m3 of Arsenic and 5 x 1020 per m3 atoms of Indium. Calculate the number of electrons and holes. Given that n. = 1.5 x 1016 m-3. Is the material n-type or p-type?
Answer:
Arsenic is a donor, whereas indium is an acceptor impurity. Here, the number of donor atoms added,
ND = 5 ×1022m3 and number of acceptor atoms added,
NA= 5× 1020 m-3
Therefore, a number of free electrons created, n=ND=5x1022, and the number of holes created, nh = NA=5 x 1020.
Now, ne > nh
Therefore, net number of free electrons created
n‘e = n -nh = 5 x 1022 -5 x 1020
= 4.95 x 1022m-3
Also, net number of holes created,
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 4
As \({ n }_{ e }^{ 1 }>{ n }_{ h }^{ 1 }\) the resulting material is n-type semiconductor.

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Question 13.
In an intrinsic semiconductor, the energy gap Eg is 1.2eV. Its hole mobility is much smaller than electron mobility and independent of temperature. What is the ratio between conductivity at 600K and that at 300K? Assume that the temperature dependence of intrinsic carrier concentration n. is given by
\({ n }_{ 1 }={ n }_{ 0 }exp\left( -\frac { { E }_{ g } }{ 2{ k }_{ B }\quad T } \right) \)
where n0 is a constant.
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 5

Question 14.
In a p-n junction diode, the current I can be expressed as
\(I={ I }_{ 0 }exp\left( -\frac { eV }{ 2{ k }_{ B }\quad T } -T \right) \)
where I0 is called the reverse saturation current, V is the voltage across the diode and is positive for forwarding bias and negative for reverse bias, and I is the current through the diode, kB is the Boltzmann constant (8.6×10-5 eV/K) and T is the absolute temperature. If for a given diode I0 = 5 x 10-12 A and T = 300 K, then
(a) What will be the forward current at a forward voltage of 0.6 V?
(b) What will be the increase in the current if the voltage across the diode is increased to 0.7 V?
(c) What is the dynamic resistance?
(d) What will be the current if reverse bias voltage changes from 1 V to 2 V?
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 6
(d) For a change in voltage from 1 to 2V, the current will remain equal to I0 = 5 x 10-12 It shows that the diode possesses practically infinite resistance in reverse biasing.

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Question 15.
You are given the two circuits as shown in Fig. 14.44. Show that circuit (a) acts as OR gate while the circuit (b) act as AND gate
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 7
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 8
The output of the NOR gate is connected to the NOT gate. Let Y1 be the output of the NOR gate and the final output of the combination of the two – gates are Y. The output of the NOR gate is 1 only when both the inputs are zero, while in the NOT gate, the input gets inverted. Using these facts, the truth table for the given arrangement can be written as below :
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 9
It is the truth table of OR gate. Therefore, the given circuit acts as Or gate
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 10
The output of two NOT gates are connected to NOR gate Let Y1 and Y2 be the outputs of the two NOT gates and the final output of the combination of three gates be Y. In a NOT gate, the input gets inverted, while the output of a NOR gate is 1 only when both the inputs are zero. Using these facts, the truth table for the given arrangement can be written as below:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 11
It is the truth table of AND gate. Therefore, ‘ the given circuit acts as AND gate.

Question 16.
Write the truth table for a NAND gate connected as given in Fig. 14.45.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 12
Hence identify the exact logic operation carried out by this circuit.
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 13
When the two inputs of NAND gates are joined as shown in Figure i.e. when A = B = 0 or A = B = 1, the above truth table of the NAND gate reduces to the one as given below:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 14
It is the truth table of a NOT gate. There operation of a NOT gate.

Question 17.
You are given two circuits as shown in Fig. 14.46, which consists of NAND gates. Identify the logic operation carried out by the two circuits.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 15
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 16
Here, the output of the NAND gate is connected to NOT gate [obtained from NAND gate]. Let Y1 be the output of the NAND gate and the final output of the combination of two gates be Y. The output of a NAND gate is 0 only when both the inputs are zero, while in NOT gate, the input gets inverted. Using these facts, the truth table for the given arrangement can be written as below.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 17

It is the truth table of AND gate. Therefore the given Circuit acts as an AND gate.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 18
Here, the outputs of the NOT gates (obtained from NAND gates) are connected to the NAND gate. Let Y: and Y2 be the outputs of the two NOT gates and the final output of the combination of three gates be Y. In a NOT gate, the input gates inverted. While the output of a NAND gate is 0 only when both the inputs are zero. Using these facts, the truth table for the given arrangement can be written as below:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 19
It is the truth table of OR gate. Therefore, the given acts as an OR gate.

Question 18.
Write the truth table for the circuit given in Fig. 14.47 below consisting of NOR gates and identify the logic operation (OR, AND, NOT) which this circuit is performing.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 20
(Hint: A = 0, B = 1 then A and B inputs of second NOR gate will be 0 and hence Y = 1. Similarly, work out the values of Y for other combinations of A and B. Compare with the truth table of OR, AND, NOT gates and find the correct one.)
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 21
Here, the output of the NOR gate is connected to another NOR gate, whose inputs are short-circuited. Let Y1 be the output of NOR gate and the final output of a NOR gate is 1 only when both the inputs are zero. Using this fact, the truth table for the given arrangement can be written as below:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 22
It is the truth table of OR gate therefore, the given circuit acts as OR gate.

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Question 19.
Write the truth table for the circuits given in Fig. 14.48 consisting of NOR gates only. Identify the logic operations (OR, AND, NOT) performed by the two circuits.
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 23
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 24
When the two inputs of NOR gates are joined as shown in Fig (a) i.e.when A = B = 0or A = B = 1, the above truth table of the NOR gate reduces to the one as given below:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 25

It is the truth table of a NOT gate. Therefore, the given circuit carries out the logic operation of a NOT gate.
Refer to Fig (b). Here the output of two NOT gates (obtained from NOR gates) are connected to NOT gate. In a NOT gate, the input gets inverted. Let \(\bar { A } and\quad \bar { B } \) be the outputs of the two NOT gates. Now, the output of a NOR gate is 1 only when both the inputs are zero. Using this fact, the truth table for the given arrangement can be written as below :
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 26
It is the truth table of AND gate. Therefore, the given circuit acts as an AND gate.

2nd PUC Physics Semiconductor Electronics: Materials, Devices and Simple Circuits Additional Questions and Answers

Question 1.
In a p-n-p transistor circuit, the collector current is 10mA. If 90% of the holes reach the collector, find emitter and base current.                            ‘
Answer:
Since 90% of the holes reach the collector
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 27

Question 2.
In input resistance of a transistor is 1000Ω. On changing its base current by 10μA, the collector current increases by 2mA. If a load resistance of 5 kΩ is used in the circuit, calculate
(i) current gain and
(ii) the voltage gain of the amplifier.
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 28
The negative sign shows that output is out of phase with the input.

Question 3.
State two disadvantages of semiconductor devices.
Answer:

  • The semiconductor devices are temperature sensitive. Even a small overheating may cause damage to them.
  • The semiconductor devices cannot handle as much power as ordinary vacuum tubes can do.

Question 4.
Express by a truth table, the output Y for all possible inputs A and B in the logic as shown
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 29
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 30

Question 5.
The inputs A, B as shown are fed a 2-input NAND gate
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 31
Draw the output waveform of the gate
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 32

Question 6.
The valence electron is an alkali metal is a
(A) f-electron
(B) p-electron
(C) s-electron
(D) d-electron
Answer:
(C) s-electron

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Question 7.
In which of the following figures, junction diode is forward biased?
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 33
Answer:
(B) During forwarding Bias, the p-section of the junction diode should be positive w.r.t the n-section.

Question 8.
The symbol shown in the adjoining figure is
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 34
(A) NOT gate
(B) OR gate
(C) AND gate
(D) NOR gate
Answer:
(A) NOT gate

Question 9.
In a common base amplifier, the phase difference between the input signal voltage and the output voltage across collector and base is
(A) 0
(B) \(\frac { \pi }{ 4 } \)
(C) \(\frac { \pi }{ 2 } \)
(D) π
Answer:
(A) 0

Question 10.
In a common base model of a transistor, the collector current is 5.488 mA for an emitter current of 5.60 A. The value of the base current amplification factor (P) will be
(A) 49
(B) 50
(C) 51
(D) 48
Answer:
2nd PUC Physics Question Bank Chapter 14 Semiconductor Electronics Materials, Devices and Simple Circuits 35

2nd PUC Economics Question Bank Chapter 11 Government Budget and the Economy

You can Download Chapter 11 Government Budget and the Economy Questions and Answers, Notes, 2nd PUC Economics Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Economics Question Bank Chapter 11 Government Budget and the Economy

2nd PUC Economics Government Budget and the Economy One Mark Questions and Answers

Question 1.
Write the meaning of budget.
Answer:
Budget is a financial statement. It is a statement which shows the estimated future incomes and expenditures of a Government. The estimated and anticipated revenue and expenditure of the Government for a financial year is called as budget.

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Question 2.
What is deficit budget?
Answer:
When the anticipated income or revenue is less than its expenditure, it is known as deficit budget (Total Revenue is less than Total Expenditure). As in most of the State Government budgets, we find that its expenditure is more than its income.

Question 3.
Name the two accounts of a Government Budget.
Answer:
The two accounts of Government budget are Revenue Account and Capital Account.

Question 4.
Give any two examples for direct tax.
Answer:
The examples for direct tax are Income tax, Wealth tax, Property tax, Corporate tax.

Question 5.
Define Fiscal Policy.
Answer:
According to Arther Smithies, “Fiscal policy is a policy under which the Government uses its expenditure and revenue programmes to produce desirable effects and to avoid undesirable effects on the national income, output and employment”.

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Question 6.
Write the meaning of progressive tax.
Answer:
When the tax is imposed according to the income of people, it is called Progressive tax. A progressive tax is a tax system in which the rate of tax increases as the income increases. Higher the income higher will be the tax and vice versa.

Question 7.
Mention any two sources of non-tax revenue.
Answer:
The sources of non tax revenue are Profits of public sector industries, grants in aid from foreign countries, Profits of RBI.

Question 8.
What is deficit financing?
Answer:
Deficit financing is one of the instruments of fiscal policy of Government for raising the level of output and employment.

Question 9.
How do you calculate Primary Deficit?
Answer:
Primary deficit is calculated as follows: Primary Deficit = Fiscal Deficit – Interest payments.

Question 10.
Write the meaning of fiscal deficit?
Answer:
It is that deficit which includes budget deficit plus borrowing from the market, other liabilities of the Government. Fiscal Deficit = Budget Deficit + market borrowings + other liabilities. It also refers to the excess of Government’s total expenditure over its total revenue.

Question 11.
What is Revenue deficit?
Answer:
It is the difference between revenue receipts and revenue expenditure. It is that deficit where Revenue Receipts are less than Revenue Expenditure.

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2nd PUC Economics Government Budget and the Economy Two Marks Questions and Answers

Question 1.
State the objectives of the Government Budget.
Answer:
The major objectives of a Government Budget are as follows:

  • To re-allocate the resources for better socio-economic progress.
  • To redistribute the income and wealth and thereby to reduce inequalities through various social security schemes, public works, economic subsidies etc.
  • To prevent economic fluctuations for maintaining economic stability.
  • To manage public enterprises efficiently and to have control over monopoly firms and to attain social welfare.

Question 2.
Differentiate between surplus budget and deficit budget.
Answer:

Surplus Budget

Deficit Budget

(i) If the anticipated revenue of the Government exceeds it anticipated expenditure in a year, it is known an surplus budget. (i) If the anticipated expenditure of the Government exceeds its anticipated revenue in a year, it is known as deficit budget.
(ii) Governments of developed countries usually plan for a surplus budget. (ii) Governments of developed countries usually plan for a deficit budget.
(iii) It indicates the financial soundness of the economy (iii) It indicates that the economy is not that healthy
(iv) This implies that the Government is giving preference to creating wealth from resources instead of spending for the welfare of the people (iv) This indicates a deliberate excessive expenditure by the Government to set the economy on the path of progress and growth, keeping in mind the welfare of the people

Question 3.
State the differences between direct and indirect taxes.
Answer:

Direct Tax

Indirect Tax

(i) The Direct tax is the tax which is imposed by the Government on individuals and companies and which cannot be shifted to others. (i) The Indirect tax is that tax which can be shifted to other persons by a person on whom it is imposed.
(ii) Here the incidence and impact of taxation falls on same person. (ii) Here the incidence and impact of tax will be on two different parties.
(iii) Example- Income tax, Wealth tax, corporate tax etc. (iii) Example central excise duties (tax), customs duties, service tax, value added tax etc.

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Question 4.
What are the major components of non-plan revenue expenditure of the Governments in developing countries?
Answer:
The major components of non-plan revenue expenditure in developing countries are as follows:

  1. Expenditure on defence services,
  2. Interest payments on borrowings.
  3. Subsidies on food, fertilizers, cooking gas etc.
  4. and Law and order.

Question 5.
Mention the uses of tax system as an instrument of fiscal policy in India.
Answer:
The major uses of tax system as an instrument of fiscal policy are as follows:

  • Helps in mobilization of revenue and checking unwanted expenditure.
  • Brings favourable changes in redistribution of income and wealth.
  • Helpful to control inflation and deflation.

Question 6.
State the four objectives of fiscal policy.
Answer:
The major objectives of fiscal policy are as follows:

  1. To mobilize the resources for development projects.
  2. To achieve equality in distribution of income and wealth.
  3. To encourage saving and investment.
  4. To reduce regional disparities, poverty and unemployment.
  5. For optimum utilisation of resources to attain full employment.

Question 7.
Give any four suggestions to reduce market loans in India.
Answer:
The following are a few suggestions to reduce market loans in India:

  1. The RBI’s accounts should be integrated with the Government accounts.
  2. The gold reserves should be auctioned and used to meet Public expenditure.
  3. Proper utilisation of resources generated through disinvestment.
  4. Utilisation of resources generated from the sale of vast real estate.

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Question 8.
How can a deficit be reduced?
Answer:
The deficit can be reduced through the following ways:

  • By increasing direct tax collection more effectively.
  • By reducing public expenditure through efficient administration.
  • By undertaking disinvestment raising revenue through sale of shares/stocks of public sector undertakings.

Question 9.
State the difference between Balanced budget and Unbalanced Budget
Answer:
Balanced Budget: Here when the revenues from tax are equal with expenditure of the government, it is balance budget. (Total Revenue = Total Expenditure).

Unbalanced Budget: Here the Total anticipated Revenue is not equal to Total anticipated Expenditure. It could be either a Surplus or a Deficit Budget.

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2nd PUC Economics Government Budget and the Economy Five Marks Questions and Answers

Question 1.
Write a note on the revenue account of the Government Budget.
Answer:

2nd PUC Economics Question Bank Chapter 11 Government Budget and the Economy 1

The revenue account of the Government consists of two categories viz., Revenue Receipts and Revenue Expenditure.

I. Revenue Receipts: The revenue receipts refer to revenue earned by the Government from both l ax and Non tax sources.
a) Tax revenue: – It is one of the main sources of revenue to the Government. Tax is a compulsory payment made by the people to the Government without expecting any direct benefits from the Government. Tax revenue can be classified as Direct tax and Indirect tax.

i) Direct tax: The direct tax is the tax levied by the Government which cannot be shifted by the person on whom it is levied. Here, the impact and incidence of tax will be on the same person. This tax is levied on the income and wealth of the people.. Personnel income tax, wealth tax, interest tax, expenditure tax are a few examples.

ii) Indirect tax: It is the tax levied on goods and services paid indirectly by the consumers. The impact and incidence of tax will be on different people. Indirect tax is a large source of revenue to the government. The various sources of indirect tax are Central excise duties, Custom duties etc.

b) Non-tax revenue: The revenue collected from sources other than the tax revenue is called non tax revenue. It consists of

  • Income from Public enterprises
  • Income from receipts
  • Revenue from administration
  • Income from railways

II. Revenue Expenditure: The revenue expenditure of Government is that expenditure incurred out of its current revenue receipts. These expenses are made by the Government on its various departments and services, interest payments on public debt, subsidies etc. The Revenue expenditure is classified as follows:

  • Plan Revenue Expenditure: The plan revenue expenditure is that expenditure spent by the Government on implementation of economic schemes, financial assistance to local Governments.
  • Non-Plan expenditure: This type of expenditure is related to the expenses incurred on internal and external securities like defence forces, law and order, subsidies, civil administration etc.

Question 2.
Explain the role of public expenditure as an instrument of fiscal policy.
Answer:
The public expenditure plays a vital role in developing countries like India. It has several effects on income, output and employment. Therefore, it is regarded as a very essential instrument in the determination of economic development of a country. In developing countries, the increased public expenditure is always desirable. The importance of public expenditure in any country is as follows:

  • The Government needs to fill deflationary gap (excess of output over consumption) and to restore full employment.
  • The Government expenditure is needed to development infrastructural facilities like roads, railways, bridges, irrigation facilities etc.
  • The Government is also expected to spend on civil administration.
  • The Government has to improve agricultural sector by providing subsidies.
  • For both internal and external securities the Government has to incur expenditure on law and order and defence forces.

Thus the role of public expenditure in overall development of an economy is very much needed for rapid economic development of a country.

Question 3.
Does Public Debt impose a burden? Discuss.
Answer:
The loan, borrowings made by the Government from public, organizations, institutions is known as public debt. When the expenditure of the Government is more than its revenue, Government will go for public borrowings.

Classification of Public Debt:
The public debt can be divided as follows :
a. Internal debt: It is debt borrowed by the Government from the sources available within the country. It includes internal borrowings, market loans, all treasury bills issued by RBI, State Governments, Commercial banks, etc. it is also known as loan taken on negotiable securities.

b. External debt: It refers to all those borrowings of Government from sources available outside the country. It includes loans taken by Government against non-negotiable instruments, non-interest bearing securities which are issued by international institutions like IMF, World Bank, IBRD, ADB, IDA, etc. Loans taken from IMF trust fund is also a part of external debt.

c. Other outstanding liabilities: It includes short term loans, loans taken against small savings schemes, Public provident fund, State provident contributions, Income tax annuity deposit schemes, interest bearing reserve funds, etc.

Public Debt as a burden: When the Government borrows more money, the public debt increases and the burden of payment of interest falls on the Government. Then the Government has to impose more taxes on the people. When more tax is levied on people, the disposable personal income of consumers falls and this will lead to reduction in consumption, savings and also national income at the end. As a result, the growth rate of an economy will be affected. So, public debt is regarded as a burden on the Government and people.

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Question 4.
Explain the types of budget deficits.
Answer:
Revenue Deficit: It is the difference between revenue receipts and revenue expenditure. It is that deficit where Revenue Receipts are less than Revenue Expenditure. It is the excess of Government’s expenditure over its revenue.
It can be expressed as follows:

Revenue Deficit = Revenue Expenditure – Revenue Receipts.

Fiscal Deficit:
It is that deficit which includes budget deficit plus borrowing from the market and other liabilities of the Government. It is the excess of Government’s total expenditure over its total revenue. It can be expressed as follows:

Fiscal Deficit = Total Expenditure – Revenue Receipts + Non-Debt receipts.

Primary Deficit:
It is that deficit which is the difference between fiscal deficit and interest paid by the Government. It is calculated by finding the difference between Government’s total income and expenditure (interest earned and interest paid is excluded). Revenue deficit and capital deficits are two types of primary deficits. The Primary deficit indicates the borrowing requirements of the Government to meet fiscal deficit excluding interest payments. It can be expressed as follows:

Primary Deficit = Fiscal Deficit – Interest payments.

Deficit reduction: The deficit can be reduced through the following ways:

  • By increasing direct tax collection more effectively.
  • By reducing public expenditure through efficient administration.
  • By undertaking disinvestment (raising revenue through sale of shares/stocks of public sector undertakings).

Question 5.
What are the Causes for Increase in Public Expenditure in India?
Answer:
In 1950, public expenditure was Rs. 900 crores and in 2004 it was around Rs.5,05,000 crores. This drastic increase in public expenditure is due to following main reasons. They are:

  • Rapid growth of population.
  • Serious effects of urbanization.
  • Increase in defence expenditure.
  • Increase in subsidies, grants and aids.
  • Increase in administration expenditure.
  • More developmental and constructive projects undertaken.
  • Inflation to a certain extent.
  • Natural and manmade calamities.
  • Poverty and unemployment.
  • Effects of democracy.

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2nd PUC Economics Government Budget and the Economy Ten Marks Questions and Answers

Question 1.
Explain the various components of Government Budget.
Answer:

2nd PUC Economics Question Bank Chapter 11 Government Budget and the Economy 2

The Government Budget can be classified as Revenue Account and Capital Account.
A) Revenue Account: The revenue account of the Government consists of two categories viz., Revenue Receipts and Revenue Expenditure.

I. Revenue Receipts: The revenue receipts refer to revenue earned by the Government from both Tax and Non tax sources.
(a)Tax revenue: – It is one of the main sources of revenue’to the Government. Tax is a compulsory payment made by the people to the Government without expecting any direct benefits from the Government. Tax revenue can be classified as Direct tax and Indirect tax.

i) Direct tax- The direct tax is the tax levied by the Government which cannot be shifted by the person on whom it is levied. Here, the impact and incidence of tax will be on the same person. This tax is levied on the income and wealth of the people. Personnel income tax, wealth tax, interest tax, expenditure tax are a few examples.

ii) Indirect tax: – It is the tax levied on goods and services paid indirectly by the consumers. The impact and incidence of tax will be on different people. Indirect tax is the largest source of revenue to the Government. Tlie various sources of indirect tax are Central excise duties, Custom duties etc.

b) Non-tax revenue: The revenue collected from sources other than the tax revenue is called non tax revenue. It consists of

  • Income from Public enterprises,
  • Income from receipts,
  • Revenue from administration and
  • Income from railways.

II. Revenue Expenditure: The revenue expenditure of Government is that expenditure incurred out of its current revenue receipts. These expenses are made by the Government on its various departments and services, interest payments on public debt, subsidies etc. The Revenue expenditure is classified as follows:

a) Plan Revenue Expenditure: The plan revenue expenditure is that expenditure spent by the Government on implementation of economic schemes, financial assistance to local Governments.
b) Non-Plan expenditure: This type of expenditure is related to the expenses incurred on internal and external securities like defence forces, law and order, subsidies, civil administration etc.

B. Capital Account: This account shows the capital requirements of Government and its way of financing various categories. The capital account of Budget of Government consists of two divisions viz., Capital Receipts and Capital expenditures.

i) Capital Receipts: The capital receipts refer to those receipts of Government which create liability or reduce financial assets. These are obtained through raising loans from the market, central Bank and foreign sources. It also includes loans raised through issuing indemnity bonds, debentures etc. The other sources of this kind are loans recovered from local Governments, small savings, public provident fund etc.

ii) Capital Expenditures: It is that expenditure of Government which is spent on acquisition of assets like land, building, tools, machines, investment on shares, stocks, loans and advances made etc. The capital expenditure is also categorized as Plan capital expenditure and non-plan capital expenditure.

  • Plan capital expenditure: This expenditure is made to create permanent revenue yielding assets. For example for construction of roadways, irrigation projects, power stations, education, public health, housing, etc. This expenditure is incurred on creation of economic and social infrastructures.
  • Non-plan capital expenditure: This type of expenditure is spent to provide rehabilitation facilities to the people who are affected by natural calamities, compensation paid to the victims of accidents and payment of interest on loans borrowed.

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Question 2.
Discuss the various instruments of fiscal policy.
Answer:
Fiscal policy is the policy of the Government in respect of public revenue, public expenditure and public borrowings. The major instruments of fiscal policy are

(a) Public Expenditure
(b) Public Revenue
(c) Public Debt and
(d) Deficit Financing

a) Public Expenditure: Public expenditure is nothing the expenses of Government incurred to promote economic and social welfare. It plays a vital role in developing countries like India. It has several effects on income, output and employment. Therefore, it is regarded as a very essential instrument in the determination of economic development of a country. In developing countries, the increased public expenditure is always desirable.

According to Wagner’s Law, there is a tendency of increasing public expenditure in respect of the following activities:

  • To undertake material production.
  • Provision of social services like public health, literacy programmes etc.
  • Maintenance of internal and external security law and order.

b) Public Revenue: Public revenue is the income of the Government from various sources , both tax and non-tax sources of revenue. In order to bring economic stability a suitable taxation policy is always desired.

The various sources of tax revenue are income tax, corporate tax, customs duties, wealth tax, service tax, excise duties etc. Similarly, the non-tax revenue sources are interest on loans, income from public enterprises, fees, fines, penalties, profits of RBI etc. The major uses of tax system as an instrument of fiscal policy are as follows:

  • Helps in mobilization of revenue and checking unwanted expenditure.
  • Brings favourable changes in redistribution of income and wealth.
  • Helpful to control inflation and deflation.

c) Public Debt: The loan, borrowings made by the Government from public, organizations, institutions is known as public debt. When the expenditure of the Government is more than its revenue, Government will go for public borrowings.

Classification of Public Debt:
The public debt can be divided as follows:
i) Internal debt: It is debt borrowed by the Government from the sources available within the country. It includes internal borrowings; market loans, etc. All treasury bills issued by RBI, State govt.’s, commercial banks, etc. It is also known as loan taken on negotiable securities.

ii) External debt: It refers to all those borrowings of Government from sources available outside the country. It include loans taken by Government against non-negotiable instruments, non-interest bearing securities which are issued by international institutions like IMF, World Bank, IBRD, ADB, IDA, etc. Loans taken from IMF trust fund is also a part of external debt.

Public Debt as a burden:
When the Government borrows more money, the public debt increases and burden of payment of interest falls on the Government. Then the Government has to impose more taxes on the people. When more tax is levied on people, the disposable personal income of consumer’s falls and this will lead to reduction in consumption, savings and also national income at the end. As a result, the growth rate of an economy will be affected. So, public debt is regarded as a burden on the Government and people.

In fact, the internal debt does not create any serious problem in country as the citizens of the country owe the debt to themselves. But external debt is a serious problem. In case of external debt, we borrow from other countries. This will transfer our purchasing power to other countries through payment of interests and reduce the money value of debtor country. So it advisable to reduce market debt:

The following are few suggestions to reduce market loans in India:

  • The RBI’s accounts should be integrated with the Government accounts.
  • The gold reserves should be auctioned and used to meet Public expenditure.
  • Proper utilisation of resources which are generated through disinvestment.
  • Utilisation of resources generated from the sale of vast real estate.

d) Deficit Financing: Deficit financing is one of the instruments of fiscal policy of Government for raising the level of output and employment. It refers to higher expenditure over receipts. It is used to finance economic planning. The major methods adopted by the Government to raise funds for deficit financing are Post Office savings, Provident fund, Public borrowings and printing of new currencies etc.

The deficit financing as an instrument of Fiscal policy leads to an increase in aggregate demand, aggregate investment, production, employment and income. A moderate deficit financing is always desirable in a developing country like India as it contributes to growth of an economy.

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2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation

You can Download Chapter 2 Accounting for Not for Profit Organisation 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 Accounting for Not for Profit Organisation

2nd PUC Accountancy Accounting for Not for Profit Organisation NCERT Textbook Questions and Answers

2nd PUC Accountancy Accounting for Not for Profit Organisation Short Answer Type Questions and Answers

Question 1.
Define Partnership Deed.
Answer:
When the partnership agreement is written and signed By all the partners and is duly stamped according to the Stamp Act, it is called “Partnership Deed”.

Question 2.
Explain in 50 words as to why it is considered desirable to make the partnership
agreement in writing.
Answer:
Partnership comes into existence as a result of agreement among the partners. The agreement can be either oral or written. The Partnership Act does not require that the agreement must be in writing. But wherever it is in writing, the document,’ which contains terms of the agreement is called ‘Partnership Deed’. It generally contains the details about all the aspects affecting the relationship between the partners including the objective of business, contribution of capital by each partner, ratio in which the profits and the losses will be shared by the partners and entitlement of partners to interest on capital, interest on loan, etc.

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Question 3.
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating.
Answer:
(i) Capitals are fixed.
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(ii) Capital are fluctuating.
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Question 4.
Why is Profit and Loss Adjustment Account prepared? Explain.
Answer:
Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm. It shows how the profits are appropriated or distributed among the partners. All adjustments in respect of partner’s salary, partner’s commission, interest on capital, interest on drawings, etc. are made through this account. It starts with the net profit/net loss as per Profit and Loss Account is transfered to this account. The journal entries for preparation of Profit and Loss Appropriation Account and making various adjustments through it are given as follows:

Question 5.
Give two circumstances under which the fixed capitals of partners may change.
Answer:
Two circumstances under which the fixed capitals of partners change

  1. When partner withdraw money from the business for personal use.
  2. When partner when introduce additional capital to the business, interest credited, interest charged.

Question 6.
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
Answer:
If the amount is withdrawn at the beginning of each quarter, the interest is calculated on the total money withdrawn during the year, for a period of seven and half months and if withdrawn at the and of each quarter it will be calculated for a period of 4’A months.

Question 7.
In the absence of Partnership deed, specify the rules relating to the following :
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital,
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.
Answer:
(i) Sharing of profits and losses – Equally
(ii) Interest on partner’s capital – interest not charged.
(iii) Interest on Partner’s drawings – interest not charged
(iv) Interest on Partner’s loan – 6% p.a
(v) Salary to a partner – not provided

2nd PUC Accountancy Accounting for Not for Profit Organisation Long Questions and Answers

Question 1.
What is partnership? What are its chief characteristics? Explain.
Answer:
Any association of two or more persons who carry on a business jointly with the intention of sharing Profit / Loss is called “Partnership”.

  • Two or More Persons: In order to form partnership, there should be at least two persons coming together for a common goal.
  • Agreement: Partnership is the result of an agreement between two or more persons to do business and share its profits and losses.
  • Business: The agreement should be to carry on some business. Mere co-ownership of a property does not amount to partnership.
  • Mutual Agency: The business of a partnership concern may be carried on by all the partners or any of them acting for all.
  • Sharing of Profit: Another important element of partnership is that, the agreement between partners must be to share profits and losses of a business.
  • Liability of Partnership: Each partner is liable jointly with all the other partners and also severally to the third party for all the acts of the firm done while he is a partner.

Question 2.
Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts if there is no partnership deed.
Answer:
The important provisions affecting partnership accounts are as follows:
(a) Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners, irrespective of their capital contribution in the firm.

(b) Interest on Capital: No partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right. However, interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue. In case the deed provides for payment of interest on capital but does not specify the rate, the interest will be paid at the rate of 6 per cent per annum. Further the interest is payable only out of the profits of the business and not if the firm incurs losses during the period.

(c) Interest on Drawings: No interes. is to be charged on the drawings made by the partners, if there is no mention in the Deed.

(d) Interest on Advances: If any partner has advanced some money to the firm beyond the amount of his capital for the purpose of business, he shall be entitled to get an interest on the amount at the rate of 6 per cent per annum.

(e) Remuneration for Firm’s Work: No partner is entitled to get salary or other remuneration for taking’-part in the conduct of the business of the. firm unless there is a provision for the same in the Partnership.Deed.

Question 3.
Explain why it is considered better to make a partnership agreement in writing.
Answer:
Normally the partner is admitted for the needs of additional capital and managerial help. When a partner is admitted the financial structure also changes. Some times all old partners may decided to have their capital in proportion of new profit sharing ratio. If they decided as per new ratio, then capital should be adjusted. The partner may bring the cash or excess capital may be withdrawn. But this changes not effected to new partner based on new partner share the old partners capital adjusted.

Example : A and B are partners sharing equally their capital before admitting a new partner, stood at and 30,000 and 20,000.

They agreed to admit Mv-C for 1 /3 share of future profit and has to bring ₹ 25,000 as capital. The new profit sharing ratio is 1 : 1 : 1. The old partner decided to adjust the capital as per new profit sharing ratio.

In this case – the new partner brings capital of ₹ 25,000 where as MvA’s capital is 30,000 and Mv. B’s capital is 20,000. Hence Mv. A has to withdraw ₹ 5,000 from the business and Mr. B has to bring ₹ 5000 to the business.

Question 4.
Illustrate how interest on drawings will be calculated under various situations.
Answer:
The partnership agreement may also provide for charging of interest on money withdrawn out of the firm by the partners for their personal use. As stated earlier, no interest is charged on the drawings if there is no express agreement among the partners about it. However if the partnership deed so provides for it, the interest is charged at an agreed rate, for the period money remained outstanding from the partners during an accounting year. Charging interest on drawings discourages excessive amounts of drawings by the partners.
The calculation of interest on drawings under different situations are.

When Fixed Amounts is Withdrawn Every Month : Many a times a fixed amount of money is withdrawn by the partners, at equal time interval, Aashish withdrew ₹ 10,000 per month from the firm for his personal use during the year ending March 31, 2006. The calculation of average period and the interest on drawings, in different situations would be as follows:

(a) When the amount is withdrawn at beginning end of each month
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 4

(b) When the amount is withdrawn at the end of each month
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 5

(c) When money is withdrawn in the middle of the month
When money is withdrawn in the middle of the month, nothing is added or deduced from the total period.
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When Fixed Amount is withdrawn Quarterly.
If the amount is withdrawn at the beginning of each quarter, the interest is calculated on the total money withdrawn during the year, for a period of seven and half months and if withdrawn at the and of each quarter it will be calculated for a period of 4\(\frac { 1 }{ 2 }\) months.

Alternatively, the interest can be calculated on the total amount withdrawn during the accounting year, for a period of 4 \(\frac { 1 }{ 2 }\) months.

When Varying Amounts are Withdrawn at Different Intervals.
When the partners withdraw different amounts of money at different time intervals, the interest is calculated using the product method.
When Dates of Withdrawal are not specified.
When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year.

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Question 5.
How will you deal with a change in profit sharing ratio among existing partners?
Take imaginary figures to illustrate your answer?
Answer:
The profits and losses of the firm are distributed among the partners in an agreed ratio. However, if the partnership deed is silent, the firm’s profits and losses are to be shared equally by all the partners.

You know that in the case of sole partnership the profit or loss, as ascertained by the profit and loss account is transferred to the capital account of the proprietor. In case of partnership, however, certain adjustments such as interest on drawings, interest on capital, salary to partners, and commission to partners are required to be made. For this purpose, it is customary to prepare a Profit and Loss Appropriation Account of the firm and ascertain the final figure of profit and loss to be distributed among the partners, in their profit sharing ratio.

2nd PUC Accountancy Accounting for Not for Profit Organisation Numerical Questions and Answrs

Fixed and Fluctuating Capitals

Question 1.
Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were ₹ 60,000 and ₹ 40,000 as on January 01, 2005. During the year, they earned a profit of ₹ 30,000. According to the partnership deed both the partners are entitled to ₹ 1,000 per month as Salary and 5% interest on their capital. They are also to be charged an interest of 5% on their drawings, irrespective of the period, which is ₹ 12,000 for Tripathi, L 8,000 for Chauhan. Prepare Partner’s Accounts when capitals are fixed.
Solution:
(a) If interest on Capital and Partners’ salaries and interest on drawings is charged against profit, the solution will beas :
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 7
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(b) If interest on capital ad partners salaries and interest on drawings is distributed out of profit.

2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 10

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Question 2.
Anubha and Kajal are partners of a firm sharing profits and losses in the ratio of 2:1. Their capital, were ₹ 90,000 and ₹ 60,000. The profit during the year were ₹ 45,000. According to partnership deed, both partners are allowed salary, ₹ 700 per month to Anubha and ₹ 500 per month to Kajal. Interest allowed on capital @ 5%p.a. The 1 drawings at the end of the period were ₹ 8,500 for Anubha and ₹ 6,500 for Kajal. Interest is to be charged @ 5% p.a. on drawings. Prepare partners capital accounts, assuming that the capital account are fluctuating.
Solution:
(a)
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 11

(b) Alternative
Note : If partners’ salaries, interest on capital and interest on drawing adjusted in Profit and Loss Appropriation Account.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 122nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 13

Question 3.
Marshall and Dhiman are in partnership since April 01, 2014. No Partnership agreement was made. They contributed ₹ 4,00,000 and 1,00,000 respectively as capital. In addition, Harshad advanced an amount of ₹ 1,00,000 to the firm, on October 01, 2014. Due to long illness, Harshad could not participate in business activities from August 1 to September 30, 2014. The profits for the year ended March 31, 2014 amounted to ₹ 1,80,000. Dispute has arisen between Harshad and Dhiman.
Harshad Claims:
(i) he should be given interest @ 10% per annum on capital and loan;
(ii) Profit should be distributed in proportion of capital;
Dhiman Claims:
(i) Profits should be distributed equally;
(ii) He should be allowed ₹ 2,000 p.m. as remuneration for the period he managed the business, in the absence of Harshad;
(iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshad and, Dhiman. Also prepare Profit and Loss Appropriation Account.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 14
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Question 4.
Aakriti and Bindu entered into partnership for making garment on April 01, 2015 without any Partnership agreement. They introduced Capitals of ₹ 5,00,000 and ₹ 3,0, 000 respectively on October 01, 2015. Aakriti Advanced. ₹ 20,000 by way of loan to the firm without any agreement as to interest. Profit and Loss account for the year ended March 2016 showed profit of ₹ 43,000. Partners could not agree upon the question of interest and the basis of division of profit. You are required to divide the profits between them giving reason for your solution.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 16
Reasons:
(a) Interest on partners loan shall be allowed at 6% p.a. because there is no partnership agreement.
(b) Interest on capital shall not be allowed because there is no agreement on interest on capital. Profit shall be distributed equally because profit sharing ratio has not been given.

Question 5.
Rakhi and Shikha are partners in a firm, with capitals of ₹ 2,00,000 and ₹ 3,00,000 respectively. The profit of the firm, for the year ended 2014-15 is ₹ 23,200. As per the Partnership agreement, they share the profit in their capital ratio, after allowing a salary of ₹ 5,000 per month to Shikha and interest on Partner’s capital at the rate of 10% p.a. During the year Rakhi withdrew ₹ 7,000 and Shikha ₹ 10,000 for their personal use. You are required to prepare Profit and Loss Appropriation Account and Partner’s Capital Accounts.
Solution:
If interest on capital and Partner’s salaries will be provided even if firm involves in loss.

2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 17

Question 6.
Lokesh and Azad are partners sharing profits in the ratio 3:2, with capitals of ₹ 50,000 and 30,000, respectively. Interest on capital is agreed to be paid (a), 6% p.a. Azad is allowed a salary of ₹ 2,500 p.a. During 2013, the profits prior to the calculation of interest on capital but after charging Azad’s salary amounted to ₹ 12,500. A provision of 5% of profits is to be made in respect of manager’s commission. Prepare accounts showing the allocation of profits and partner’s capital accounts.
Solution:
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Question 7.
The partnership agreement between Maneesh and Girish provides that:
(i) Profits will be shared equally;
(ii) Maneesh will be allowed a salary of ₹ 400 p.m;
(iii) Girish who manages the sales department will be allowed a commission equal to 10% of the net profits, after allowing Maneesh’s salary;
(iv) 7% interest will be allowed on partner’s fixed capital;
(v) 5% interest will be charged on partner’s annual drawings;
(vi) The fixed capitals of Maneesh and Girish are ₹ 1,00,000 and ₹ 80,000, respectively. Their annual drawings were ₹ 16,000 and 14,000, respectively. The net profit for the year ending March 31, 2006 amounted to ₹ 40,000;
Prepare firm’s Profit and Loss Appropriation Account.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 20

Question 8.
Ram, Raj and George are partners sharing profits in the ratio 5:3:2. According to the partnership agreement George is to get a minimum amount of ₹ 10,000 as his share of profits every year. The net profit for the year 2013 amounted to ₹ 40,000. Prepare the Profit and Loss Appropriation Account.
Solution:

2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 21

Question 9.
Amann, Babita and Suresh are partners in a firm. Their profit sharing ratio is 2:2:1. Suresh is guaranteed a minimum amount of ₹ 10,000 as share of profit, every year, Any deficiency on that account shall be met by Babita. The profits for two years ending December 31, 2015, and December 31, 2016, were ₹ 40,000 and ₹ 60,000, respectively. Prepare the Profit and Loss Appropriation Account for the two years.
Babita’s Capital ₹ 14,000; Suresh’s capital ₹ 10,000 and for the year 2006, Profit transferred to Amann’s Capital ₹ 24,000, Suresh’s capital, ₹ 12,000)
Solution:
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Question 10.
Simmi and Sonu are partners in a firm, sharing profits and losses in tite ratio of 3:1.
The profit and loss account of tite firm for the year ending March 31, 2015 shows.a net profit of 1,50,000. Prepare the Profit and Loss Appropriation Account by taking into consideration the following information:
(I) Partners capital on April 1, 2014; Sinimi, 30,000; Sonu, 60,000; 104 Accountancy Not-for-Profit Organisation and Partnership Accounts
(ii) Current accounts babnces on April 1, 2014; Simmi, 30,000 (cr.); Sonu, 15,000
(iii) Partners drawings during the year amounted to Simmi, 20,000; Sonu, 15,000;
(iv) Interest on capital was allowed @ 5% p.a.
(y) Interest on drawing was to be charged @ 6% p.a. at an average of six in months;
(vi) Partners’ salaries : Simini 12,000 and Sonu 9,000. Also show the partners’ current accounts.
Solution:
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Question 11.
Ramesh and Suresh were partners in a firm sharing profits in the ratio, of their capitals contributed on commencement of business which were ₹ 80,000 and ₹ 60,000 respectively. The firm started business on April 1, 2013. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of ₹ 2,000 and ₹ 3,000, respectively. The profits for year ended March 31, 2015 before making above appropriations was ₹ 1,0, 300. The draw ings of Ramesh and Suresh were ₹ 40,000 and ₹ 50,000, respectively. Interest on drawings amounted to ₹ 2,000 for Ramesh and ₹ 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and* partners’ capital accounts, assuming that their capitals are fluctuating.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 24
Capital Ratio = Ramesh : Suresh
= 80,000 : 60,000
= 4 : 3

Question 12.
Sakesh and Vanita were partners in a firm. Their partnership agreement provides that:
(i) Profits would be shared by Sukesh and Vanita in the ratio of 3:2;
(ii) 5% interest is to be allowed on capital;
(iii) Vanita should be paid a monthly salary of ₹ 600.
The following balances are extracted from the books of the firm, on December 31,2014.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 25
Net profit for the year, before charging interest on capital and after charging partner’s . salary was ₹ 9,500. Prepare the Profit and Loss Appropriation Account and the Partner’s Current Accounts.
Calculation of Interest on Capital and Interest on Drawings
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 26

Question 13.
Rahul, Rohit and Karan started partnership business on April 1, 2014 with capitals of ₹ 20,00,000, ₹ 18,00,000 and ? 16,00,000, respectively.
The profit for the year ended March 2015 amounted to ₹ 1,35,000 and the partner’s drawings had been Rahul ₹ 50,000, Rohit ₹ 50,000 and Karan ₹ 40,000. The profits are distributed among partner’s in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.
Solution:
Interest on Capital
Rahul = 20,00,000 × 5% =₹ 1,00,000
Rohit = 18,00,000 × 5% =  ₹ 90,000 .
Karan = 18,00,000 × 5% = ₹ 80,000

Question 14.
Sunflower and Pink Rose started partnership business on April 01, 2014 with capitals of ₹ 2,50,000 and ₹ 1,50,000, respectively. On October 01, 2014, they decided that their capitals should be ₹ 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed @ 10% p.a. Calculate interest on capital as on March 31, 2015.
Solution:
Product Method
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 27
Interest on Capital = Sum of Product \(\frac { Rate }{ 2 }\) x \(\frac { 1 }{ 12 }\)
Sunflower = 27,00,000 x \(\frac { 10 }{ 100 }\) x \(\frac { 1 }{ 12 }\) = 22,500
PinkRose = 21,00,000 \(\frac { 10 }{ 100 }\) x \(\frac { 1 }{ 12 }\) = 17,500
Alternative Method
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 28

Question 15.
On March 31,2014 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the books of the firm at ₹ 4,00,000, ₹ 3,00,000 and ₹ 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to ₹ 1,50,000 and the partner’s drawings had beenJVIountain: ₹ 20,000, Hill ₹ 15,000 and Rock k 10,000.
Calculate interest on capital.
Solution:
Generally interest on Capital is calculated on opening balance of capital. If additional capital is not given.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 29
Interest on Capital
Mountain 3,70,000 x 10% = 37,000
Hill 2,65,000 x 10% = 26,500
Rock 1,60,000 x 10%= 16,000

Question 16.
Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2014:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 30
During the year Mahadev’s drawings were ₹ 30,000. Profits during 2007 is ₹ 10,00,000. Calculate interest on capital @ 5% p.a for the year ending March 31, 2014.
Solution:
Interest on Capital
Neelkant’s 10,00,000 x 5% = 50,000
Mahadev’s 10,00,000 x 5% = 50,000
Note : In this question, as the balance of both Partner’s Capital Account and of Partner’s current account are mentioned, so it has been assumed that the capital of the partners is fixed. As we, know, when the capital of the partners is fixed, drawings and interest on capital does not affect the capital balances of the partners. Rather, it would affect their current accunt balance.

Therefore, in this case, capital at the beginning (i.e. opening capital) and capital at the end (i.e. Closing capital) of the year would remain same. Thus,the interest on capital is calculated on fixed capital balances (given in the balance sheet of the question)

KSEEB Solutions

Question 17.
Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2014.
May 01,2013 ₹ 12,000
July 31,2013 ₹ 6,000
September 30, 2013 ₹ 9,000
November 30,2013 ₹ 12,000
January 01, 2014 ₹ 8,000
March 31, 2014 ₹ 7,000 Interest on drawings is charged @ 9% p.a.
Calculate interest on drawings
Solution:
Product Method
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 31
Here the formula will be
Interest on Drawings = Product x \(\frac { Rate }{ 100 }\) x \(\frac { 1 }{ 12 }\)
= 3,06,000 x 9% x \(\frac { 1 }{ 12 }\) = 2,295.

Question 18.
The capital accounts of Moli and Golu showed balances of ₹ 40,000 and ₹ 20,000 as on April 01, 2014. They shared profits in the ratio of 3:2. They allowed interest on capital @ 10% p.a. and interest on drawings, @ 12 p.a. Golu advanced a loan of ₹ 10,000 to the firm on August 01, 2014. During the year, Moli withdrew ₹ 1,000 per month at the beginning of every month whereas Golu withdrew ₹ 1,000 per month at the end of every month. Profit for the year, before the above mentioned adjustments was ₹ 20,950. Calculate interest on drawings show distribution of profits and prepare partner’s capital accounts.
Solution:
Interest on Moli’s Drawing = Total Drawings x \(\frac { Rate }{ 100 }\) x \(\frac{13}{2 \times 12}\)
= 12,000 x 12% x \(\frac{13}{2 \times 12}\) = 780.

Interest on Golu’s Drawing = Total Drawings x \(\frac { Rate }{ 100 }\) x \(\frac{11}{2 \times 12}\)
= 12,000 x 12% x \(\frac{11}{2 \times 12}\) = 600.

Question 19.
Rakesh and Roshan are partners, sharing profits in the ratio of 3:2 witn capitals of ₹ 40,000 and ₹ 30,000, respectively. They withdrew from the firm the following amounts, for their personal use:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 32
Interest is to be charged @ 6% p.a. Calculate interest on drawings, assuming that book of accounts are closed on March 31, 2015, every year.
Solution:
Calculation of Interest on Drawings
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 33
Interest on Capital = Sum of Product \(\frac { Rate }{ 100 }\) x \(\frac { 1 }{ 12 }\)
= 25,300 x \(\frac { 6 }{ 100 }\) x \(\frac { 1 }{ 2 }\) = 126.5
Interest on Rohans Drawings.

Question 20.
Himanshu withdrews ₹ 2,500 at the end Month of each month/ The Partnership deed provides for charging the interest on drawings @ 12% p.a. Calculate interest on Himanshu’s drawings for the year ending 31st December, 2015.
Solution:
Total Drawing of Himanshu = 2,500 x 12 = 30,000
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 34

KSEEB Solutions

Question 21.
Bharam is a partner in a firm. He withdraws ₹ 3,000 at the starting of each month for 12 months. The books of the firm closes on March 31 every year. Calculate interest on drawings if the rate of interest is 10% p.a.
Solution:
Total Drawing of Bharam = 3,000 x 12 = 36,000
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 35

Question 22.
Raj and Neeraj are partners in a firm. Their capitals as on April 01, 2015 wereT2,50,000 and ₹ 1,50,000, respectively. They share profits equally. On July 01, 2015, they decided that their capitals should be ₹ 1,00,000 each. The necessary adjustment in the capitals were made by introducing or withdrawing cash by the partners’. Interest on capital is allowed @ 8% p.a. Compute interest on capital for both the partners for the year ending on March 31, 2016.
Solution:
Interest on Capital
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 36
Interest = Sum of Product  x \(\frac { Rate }{ 100 }\) x \(\frac { 1 }{ 12 }\)
= 16,50,000 x \(\frac { 8 }{ 100 }\) x \(\frac { 1 }{ 12 }\) = 11,000
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 37

Question 23.
Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2013 were ₹ 24,000 and ₹ 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 38

Question 24.
Harish is a partner in a firm. He withdrew the following amounts during the year 2015:
February 01 ₹ 4,000
May 01 ₹ 10,000
June 30 ₹ 4,000
October 31 ₹ 12,000
December 31 ₹ 4,000
Interest on drawings is to be charged @ 712 % p.a.
Calculate the amount of interest to be charged on Harish’s drawings for the year ending December 31,2015.
Solution:
Calculation of interest on drawings – Harish
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 39

Interest on Drawing = 1,72,000 x  \(\frac { 75 }{ 100 }\) x \(\frac { 1 }{ 12 }\) = 1,075

Question 25.
Menon and Thomas are partners in a firm. They-share profits equally. Their monthly drawings are ₹ 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn: (i) in the beginning of every month, (ii) in the middle of every month, and (iii) at the end of every month.
Sol. Case (i)
If they withdraw money in the beginning of each month
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 40

Case (ii)
If they withdraw in the middle of every month
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 41

Case (iii)
If they withdraw at the end of every month
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 42

KSEEB Solutions

Question 26.
On March 31, 2015, after the close of books of accounts, the capital accounts of Ram, Shyam and Mohan showed balance of ₹ 24,000 ₹ 18,000 and ₹ 12,000, respectively. It was later discovered that interest on capital @ 5% had been omitted. The profit for the year ended March 31,2015, amounted to ₹ 36,000 and the partner’s drawings had been Ram, ₹ 3,600; Shyam, ₹ 4,500 and Mohan, ₹ 2,700. The profit sharing ratio of Ram, Shyam and Mohan was 3:2:1. Calculate interest on capital.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 43
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 44

Guarantee of Profit to the Partners
Question 27.
Amit, Sumit and Samiksha are in partnership sharing profits in the ratio of 3:2:1. Samiksha’ share in profit has been guaranteed by Amit and Sumit to be a minimum sum of ₹ 8,000. Profits for the year ended March 31, 2015 was ₹-36,000. Divide profit among the partners.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 45

Question 28.
Pinki, Deepati and Kaku are partner’s sharing profits in the ratio of 5:4:1. Kaku is given a guarantee that his share of profits in any given year would not be less than ₹ 5,0. Deficiency, if any, would be borne by Pinki and Deepti equally. Profits for the year amounted to ₹ 40,000. Record necessary journal entries in the books of the firm showing the distribution of profit.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 46

Question 29.
Abhay, Siddharth and Kusum are partners in a firm, sharing profits in the ratio of 5:3:2. Kusum is guaranteed a minimum amount of ₹ 10,000 as per share in the profits. Any deficiency arising on that account shall be met by Siddharth. Profits for the years ending March 31, 2015 and 2016 are ₹ 40,000 and 60,000 respectively. Prepare Profit and Loss Appropriation Account.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 47

KSEEB Solutions

Question 30.
Radha, Mary and Fatima are partners sharing profits in the ratio of 5:4:1. Fatima is given a guarantee that her share of profit, in any year will not be less than ₹ 5,000. The profits for the year ending March 31,2015 amounts to ₹ 35,000. Shortfall if any, in the profits guaranteed to Fatima is to be borne by Radha and Mary in the ratio of 3:2. Record necessary journal entry to show distribution of profit among partner.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 48

Question 31.
X, Y and Z are in Partnership, sharing profits and losses in the ratio of 3:2:1, respectively. Z’s share in the profit is guaranteed by X and Y to be,a minimum of ₹ 8,000. The net profit for the year ended March 31, 2015 was ₹ 30,000. Prepare Profit and Loss Appropriation Account, indicating the amount finally due to each partner.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 49

Question 32.
Arun, Bobv and Chintu are partners in a firm sharing profit in the ratio or 2:2:1. According to the terms of the partnership agreement, Chintu has to get a minimum of ₹ 60,000, irrespective of the profits of the firm. Any Deficiency to Chintu on Account of such guarantee shall be borne by Arun. Prepare the profit and loss appropriation account showing distribution of profits among partners in case the profits for year 2015 are: (i) ₹ 2,50,000; (ii) ₹ 3,60,000.
Solution:
Case (i)
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 50

Case (ii)
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 51

Question 33.
Ashok, Brijesh and Cheena are partners sharing profits and losses in the ratio of 2 : 2 : 1. Ashok and Brijesh have guaranteed that Cheenashare in any year shall be less than ₹ 20,000. The net profit for the year ended March 31, 2015 amounted to ₹ 70,000. Prepare Profit and Loss Appropriation Account.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 52

KSEEB Solutions

Question 34.
Ram, Mohan and Sohan are partners with capitals of ₹ 5,00,000, ₹ 2,50,000 and 2,00,000 respectively. After providing interest on capital @ 10% p.a. the profits are divisible as follows:
Ram \(\frac { 1 }{ 2 }\), Mohan \(\frac { 1 }{ 3 }\) and Sohan \(\frac { 1 }{ 6 }\). But Ram and Mohan have guaranteed that Sohan’s share in the profit shall not be less than ₹ 25,000, in any year. The net profit for the year ended March 31, 2015 is ₹ 2,00,000, before charging interest on capital.
You are required to show distribution of profit.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 53

Question 35.
Amit, Babita and Sona form a partnership firm, sharing profits in the ratio of 3 : 2 : 1, subject to the following :
(i) Sona’s share in the profits, guaranteed to be not less than ₹ 15,000 in any year.
(ii) Babita gives guarantee to the effect that gross fee earned by her for the firm shall be equal to her average gross fee of the proceeding five years, when she was carrying on profession alone (which is ₹ 25,000). The net profit for the year ended March 31, 2015 is ₹ 75,000. The gross fee earned by Babita for the firm was ₹ 16,000, You are required to show Profit and Loss Appropriation Account (after giving effect to the alone).
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 54

Question 36.
The net profit of X, Y and Z for the year ended March 31, 2015 was f 60,000 and the same was distributed among them in their agreed ratio of 3 : 1 : 1. It was subsequently discovered that the under mentioned transactions were not recorded in the books :
(i) Interest on Capital @ 5% p.a.
(ii) Interest on drawings amounting to X ₹ 700, Y ₹ 500 and Z ₹ 300.
(iii) Partner’s Salary : X ₹ 1000, Y ₹ 1500 p.a. .
The capital accounts of partners were fixed as : X ₹ 1,00,000, Y ₹ 80,000 and Z ₹ 60,000. Record the adjustment entry.
Solution:
Past Adjustment
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 55
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 56

Question 37.
The firm of Harry, Porter and Ali, who have been sharing profits in the ratio of 2 : 2 : 1, have existed for same years. Ali wants that he should get equal share in the profits with Harry and Porter and he further wishes that the change in 110 Accountancy – Not-for- Profit Organisation and Partnership Accounts the profit sharing ratio should come into t effect retrospectively were for the last three year. Harry and Porter have agreement on this account.
The profits for the last three years were:
2013- 14 22,000
2014- 15 24,000
2015- 16 29,000
Show adjustment of profits by means of a single adjustment journal entry.
Solution:
Distribution of Profit
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 57
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 58

KSEEB Solutions

Question 38.
Mannu and Shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on March 31, 2015.
Balance Sheet as at March 31,2015.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 59
Profit for the year ended March 31, 2015 was ₹ 5,000 which was divided in the agreed • ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 60

Question 39.
On March 31, 2015 the balance in the capital accounts of Eluin, .Monu and Ahmed, after making adjustments for profits, drawing, etc; were ₹ 80,000, ₹ 60,000 and ₹ 40,000 respectively. Subsequently, it was discovered that interest on capital and interest on drawings had been omitted.
The partners were entitled to interest on capital @ 5% p.a. The drawings during the year were Eluin ₹ 20,000; Monu, ₹ 15,000 and Ahmed, ₹ 9,000. Interest on drawings chargeable to partners were Eluin ₹ 500, Monu ₹ 360 and Ahmed ₹ 200. The net profit during the year amounted to ₹ 1,20,000.
The profit sharing ratio was 3:2:1. Pass necessary adjustment entries.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 61

Question 40.
Azad and Benny are equal partners. Their capitals are ₹ 40,000 and ₹ 80,000, respectively. After the accounts for the year have been prepared it is discovered that interest at 5% p.a. as provided in the partnership agreement, has not been credited to the capital accounts before distribution of profits. It is decided to make an adjustment entry at the beginning of the next year. Record the necessary journal entry.
Solution:
Interest on Capital
Azad =40,000 x 5% = 2,000
Benny = 80,000 x 5% = 4,000
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 62

KSEEB Solutions

Question 41.
Kavita and Pradeep are partners, sharing profits in the ratio of 3 : 2. They employed Chandan as their manager, to whom they paid a salary of ₹ 750 p.m. Chandan deposited ₹ 20,000 on which interest is payable @ 9% p.a. At the end of 2001 (after the division of profit), it was decided that Chandan should be treated as partner w.e.f. Jan. 1., 1998 with 1/6 th share in profits. His deposit being considered as capital carrying interest @ 6% p.a. like capital of other partners. Firm’s profits after allowing interest on capital were as follows:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 63
Record the necessary journal entries to give effect to the above.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 64
Chandan received as Manager = Interest on Loan + Salary = 7,200 T 36,000 = 43,200
Total Profit of 4 years before interest on Chandan’s Loan an d Salary = 2,38,200
Interest on Chandan’s Capital for 4 years = {20,000 x (6/100) = 1,200}
= 1,200 x 4 = 4,800
Profit after interest on all partners Capital
= Total Profit of four years before interest on Chandan’s loan and Salary – Interest on Chandans capital for four years.
= 2,38,200 – 4,800 = 2,33,400
Wrong Distribution – Distribution of 4 years
Profit when Chandan as a Manager
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 65
Right distribution – Division of Profit when Chandan as Partner
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 66
Kavita’s share of profit (2,33,400 – 38,900) x (3/5) = 1,16,700
Pradeep’s share of Profit (2,33,400 – 38,900) x (2/5) = 77,800
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 67

Question 42.
Mohan, Vijay and Anil are partners, the balance on their capital accounts being ₹ 30,000, ? 25,000 and ₹ 20,000 respectively. In arriving at these figures, the profits for the year ended March 31, 2015 amounting to Rupees 24,000 had been credited to partners in the proportion in which they shared profits. During the tear their drawings for Mohan, Vijay and Anil were ₹ 5,000, ₹ 4,000 and ₹ 3,000, respectively. Subsequently, the following omissions were noticed:
(a) Interest on Capital, at the rate of 10% p.a., was not charged.
(b) Interest on Drawings: Mohan ₹ 250, Vijay ₹ 200, Anil ₹ 150 was not recorded in the books.
Record necessary corrections through journal entries.
Solution:
Interest on Capital Shall be calculated on opening-capital
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 68
interest on capital
Mohan = 27,000 x 10% = 2,700 ,
Vijay = 21,000 x 10% = 2,100
Anil = 15,000 x 10% =1,500
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 69

Question 43.
Anju, Manju and Mamta are partners whose fixed capitals were t 10,000, ₹ 8,000 and ₹ 6,000, respectively. As per the partnership agreement, there is a provision for allowing interest on capitals @ 5% p.a. but entries for the same have not been made for the last three years. The profit sharing ratio during there years remained as follows:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 70
Make necessary and adjustment entry at the beginning of the fourth year i.e. Jan. 2015. Sol. Interest on Capital ‘
Anuj = 10,000 x 5% = 500
Manju = 8,000 x 5 = 400
Mamta = 6,000 x 5% = 30
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 71
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 72

KSEEB Solutions

Question 44.
Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2015.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 73
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 74
Prepare final accounts for the year ended December 31,2005, with following adjustment:
(a) Stock on December 31,2005, was ₹ 42,500.
(b) A Provision is to be made for bad debts at 5% on debtors.
(c) Rent outstanding was ₹ 1,600.
(d) Wages outstanding were ₹ 1,200.
(e) Interest on capital to be allowed on capital @ 4% per annum and interest on drawings to be charged @ 6% per annum.
(f) Dinker and Ravinder are entitled to a Salary of ₹ 2,000 per annum
(g) Ravinder is entitled to a commission₹ 1,500.
(h) Depreciation is to be charged on Building @ 4%, Plant and Machinery, 6%, and furniture and fixture, 5%.
(i) Outstanding interest on loan amounted to ₹ 350.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 75
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 76
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 77
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 78
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 79

Question 45.
Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2015.
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 80
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 81
Prepare final accounts for the year ended March 31,2015, with following adjustments:
(a) Stock on March 31,2006 was ₹ 37,500.
(b) Bad debts ₹ 3,000; Provision for bad debts is to be made at 5% on debtors.
(c) Rent Prepaid were ₹ 1,200.
(d) Wages outstanding were ₹ 2,200.
(e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged @ 5% per annum.
(f) Kajol is entitled to a Salary of ₹ 1,500 per annum.
(g) Prepaid insurance was ₹ 500.
(h) Depreciation was charged on Building, @ 4%; Plant and Machinery, @ 5%; Motor car, @ 10% and furniture and fixture, @ 5%.
(i) Goods worth ₹ 7,000 were destroyed by fire on January 20,2015.The Insurance company agreed to pay ₹ 5,000 in full settlement of the claim.
Solution:
2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 82
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2nd PUC Accountancy Question Bank Chapter 2 Accounting for Not for Profit Organisation - 86

Test your Understanding -I

Question 1.
Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:
(i) Mohan is an active partner. He wants a salary of ₹ 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed ₹ 20,000 and Shyam ₹ 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum.
Answer:
(i) Not valid
(ii) Not valid
(iii) Not valid
(iv) Not valid

Question 2.
State whether the following statements are true or false:
(i) Valid partnership can be formulated even without a written agreement between the partners.
(ii) Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii) Maximum number of partners in a banking firm can be 20;
(iv) Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner;
(vi) Interest on partner’s loan is .to be given @ 12% p.a. if the deed is silent about the rate. ‘
Answer:
(i) No
(ii) No
(iii) No
(iv) No
(v) No
(vi) No

KSEEB Solutions

2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter

You can Download Chapter 11 Dual Nature of Radiation and Matter Questions and Answers, Notes, 2nd PUC Physics Question Bank with Answers, Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter

2nd PUC Physics Dual Nature of Radiation and Matter NCERT Text Book Questions and Answers

Question 1.
Find the
(a) Maximum frequency, and
(b) Minimum wavelength of X-rays produced by 30 kV electrons.
Answer:
V=30kV = 30×103 V
(a) The maximum frequency of X-rays produced is given by,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 1

Question 2.
The work function of caesium metal is 2.14 eV. When light of frequency 6 x 1014Hz is incident on the metal surface, photoemission of electrons occurs. What is the
(a) Maximum kinetic energy of the emitted electrons,
(b) Stopping potential, and
(c) Maximum speed of the emitted photoelectrons?
Answer:
υ=6×1014Hz
ω =2.14eV = 2.14 x 1.6 x 10-19J
(a) The maximum kinetic energy of the emitted electrons is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 2
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 3

Question 3.
The photoelectric cut-off voltage in a certain experiment is 1.5 V. What is the maximum kinetic energy of photoelectrons emitted?
Answer:
Here, V0 = 1.5 V
Maximum kinetic energy. (K.E.)max
= eV0 = 1.6 X 10-19 X 1.5
= 2.4 x 10-19 J

KSEEB Solutions

Question 4.
Monochromatic light of wavelength 632.8 nm is produced by a helium-neon laser. The power emitted is 9.42 raW.

(a) Find the energy and momentum of each photon in the light beam,

(b) How many photons per second, on average, arrive at a target irradiated by this beam? (Assume the beam to have a uniform cross-section which is less than the target area), and

(c) How fast does a hydrogen atom have to travel in order to have the same momentum as that of the photon?
Answer:
λ= 632.8 nm= 632 x 10-9m
power, P = 9.42 mW = 9.42 x 10-3 W
(a) Energy of each photon in the light beam,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 4
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 5

Question 5.
The energy flux of sunlight reaching the surface of the earth is 1.388 x 103 W/m2. How many photons (nearly) per square meter are incident on the Earth per second? Assume that the photons in the sunlight have an average wavelength of 550 nm.
Answer:
Energy flux of sunlight reaching the surface of the earth,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 6

Question 6.
In an experiment on photoelectric effect, the slope of the cut-off voltage versus frequency of incident light is found to be 4.12 x 10-15 V s. Calculate the value of Planck’s constant.
Answer:
Slope = 4.12 x 10-15Vs
\(\frac {h}{e} \) = 4.12 x 10-15
h = 4.12 x 10-15 x 1.6 x 10-19 = 6.6 x 10-34Js

KSEEB Solutions

Question 7.
A 100W sodium lamp radiates energy uniformly in all directions. The lamp is located at the centre of a large sphere that absorbs all the sodium light which is incident on it. The wavelength of the sodium light is 589 nm.
(a) What is the energy per photon associated with sodium light?
(b) At what rate are the photons delivered to the sphere?
Answer:
Power of the lamp, P = 100 W
λ =589nm=589×10-9m
(a) Therefore, energy of a photon of sodium lamp light,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 7

Question 8.
The threshold frequency for a certain metal is 3.3 x 1014 Hz. If light of frequency
8.2 x 1014 Hz is incident on the metal, predict the cutoff voltage for the photoelectric emission.
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 8

Question 9.
The work function for a certain metal is 4.2 eV. Will this metal give photoelectric emission for incident radiation of wavelength 330 nm?
Answer:
X, = 330 nm = 330 x 10-9m
∴ Energy of a photon of incident light,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 9
Since the energy of the photon of incident light is less than the work function for the metal, photoelectric emission will not take place.

KSEEB Solutions

Question 10.
Light of frequency 7.21 x 1014 Hz is incident on a metal surface. Electrons with a maximum speed of 6.0 x 105 m/s are ejected from the surface. What is the threshold frequency for photoemission of electrons?
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 10

Question 11.
Light of wavelength 488 nm is produced by an argon laser which is used in the photoelectric effect. When light from this spectral line is incident on the emitter, the stopping (cut-off) potential of photoelectrons is 0.38 V. Find the work function of the material from which the emitter is made.
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 11

Question 12.
Calculate the
(a) Momentum, and
(b) de Broglie wavelength of the electrons accelerated through a potential difference of 56 V.
Answer:
V = 56 V
(a) When an electron is accelerated through a potential difference V, it acquires kinetic energy, which is given by, \(\frac { 1 }{ 2 } \)mV2 – eV Therefore, momentum of electron.
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 12

Question 13.
What is the
(a) Momentum,
(b) Speed, and
(c) de Broglie wavelength of an electron .with kinetic energy of 120 eV.
Answer:
V = 120eV
(a) When an electron is accelerated through a potential difference V, it acquires kinetic energy which is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 13

Question 14.
The wavelength of light from the spectral emission line of sodium is 589 nm. Find the kinetic energy at which
(a) An electron, and
(b) A neutron, would have the same de Broglie wavelength.
Answer:
λ = 589 nm= 589 x 109 m.
The de-Broglie wavelength of a particle having energy E is given by,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 14

Question 15.
What is the de Broglie wavelength of
(a) A  bullet of mass 0.040 kg travelling at the speed of 1.0 km/s,
(b) A ball of mass 0.060 kg moving at a speed of 1.0 m/s, and
(c) A dust particle of mass 1.0 x 10 9 kg drifting with a speed of 2.2 m/s?
Answer:
The de-Broglie wavelength of a particle moving with a velocity V is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 15

Question 16.
An electron and a photon each have a wavelength of 1.00 nm. Find
(a) Their momenta,
(b) The energy of the photon, and
(c) The kinetic energy of electron.
Answer:
h = 6.63 × 10-34 Js
λ= 1 nm= 10-9 m
(a) The electron and the photon will possess the same momentum, which is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 16
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 17

Question 17.
(a) For what kinetic energy of a neutron will the associated de Broglie wavelength be 1.40 x 10-10m?
(b) Also find the de Broglie wavelength of a neutron, in thermal equilibrium with matter, having an average kinetic energy of (3/2) k T at 300 K.
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 18

Question 18.
Show that the wavelength of electromagnetic radiation is equal to the de Broglie wavelength of its quantum (photon).
Answer:
Consider an electromagnetic radiation of wavelength λ and frequency υ. Then,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 19
But
\(\frac { h\upsilon }{ C } =P………………(2)\quad \)
P = momentum of the electromagnetic radiation. From equations (1) and (2), we have
\(\lambda =\frac { h }{ P } \)
Hence the wavelength of electromagnetic radiation is equal to the de-Broglie wavelength associated with its quantum.

KSEEB Solutions

Question 19.
What is the de Broglie wavelength of a nitrogen molecule in air at 300 K? Assume that the molecule is moving with the root- mean square speed of molecules at this temperature. (Atomic mass of nitrogen = 14.0076 u)
Answer:
K= 1.38 x 10-23Jkg-1
T = 300 K
Nitrogen is a diatomic gas
∴ Mass of the nitrogen gas molecule,
m= 2 x 14.0076 × 1027amu
= 2 x 14.0076 x 1027 = 4.65 ×10-26 kg.
The root mean square speed of the nitrogen gas molecule is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 20

2nd PUC Physics Dual Nature of Radiation and Matter Additional Exercises

Question 20.
(a) Estimate the speed with which electrons emitted from a heated emitter of an evacuated tube impinge on the collector maintained at a potential difference of 500 V with respect to the  emitter. Ignore the small initial speeds of, the electrons. The specific charge of the electron, i.e., its e/m is given to be 1.76 x 1011 C kg-1

(b) Use the same formula you employ in (a) to obtain electron speed for a collector potential of 10 MV. Do you see what is wrong? In what way is the formula to be modified?
Answer:
(a) V = 500 V
e/m= 1.76×1011 C kg-1
Due to the applied potential difference between the emitter and the collector, an emitted electron gains kinetic energy, which is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 21

Using the same formula as in (a), the speed of electrons at 10 mV comes out to be greater than the speed of light. Since no material particle can move with the speed of light, the result is clearly wrong.

In fact, equation (1) is valid for kinetic energy of the electron, so long as V/C < < 1. At 10 mV, the electrons attain a speed comparable to the speed of light i.e. become relativistic.

In the relativistic domain:- The mass of the electron having rest mass m() is
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 22

Question 21.
(a) A monoenergetic electron beam with electron speed of 5.20 x 106 m s-1 is subject to a magnetic field of 1.30 x 10-4 T normal to the beam velocity. What is the radius of the circle traced by the beam, given e/m for electron equals 1.76 x 10nC kg-1.

(b) Is the formula you employ in (a) valid for calculating radius of the path of a 20 MeV electron beam? If not, in what way is it modified ?

[Note: Exercises 11.20(b) and 11.21(b) take you to relativistic mechanics which is beyond the scope of this book. They have been inserted here simply to emphasise the point that the formulas you use in part (a) of the exercises are not valid at very high speeds or energies. See answers at the end to know what ‘very high speed or energy’ means.]
Answer:
(a) V = 5.2×106 ms1
B = 1.3 × 10-4
e/m=1.76 x 1011Ckg-1

When a magnetic field is applied normally to the path of electron, the force due to the field makes the electron to move along the circular path. The radius of the circular path is given by,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 23

The 10 MeV electron attain a speed comparable to the speed of light i.e. becomes relativistic. In the relativistic domain, the mass of an electron, having rest mass M0 is given by
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 24

Question 22.
An electron gun with its collector at a potential of 100 V fires out electrons in a spherical bulb containing hydrogen gas at low pressure (~10-2 mm of Hg). A magnetic field of 2.83 x 10-4 T curves the path of the electrons in a circular orbit of radius 12.0 cm. (The path can be viewed because the gas ions in the path focus the beam by attracting electrons, and emitting light by electron capture; this method is known as the ‘fine beam tube’ method.) Determine e/m from the data.
Answer:
V = 100 V
B = 2.83 ×10-4 T
r = 12 cm = 12 x 10-2 m
Due to the applied potential difference between the emitter and the collector, an emitted electron gains kinetic energy which is given by,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 25

When a magnetic field is applied normal to the path of electron, the force due to the filed makes the electron to move along the circular path. The radius of the circular path is given by,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 26

Question 23.
(a) An X-ray tube produces a continuous spectrum of radiation with its short wavelength end at 0.45 Å. What is the maximum energy of a photon in the radiation?
(b) From your answer to (a), guess what order of accelerating voltage (for electrons) is required in such a tube?
Answer:
λ= 0.45 A = 0.45 x 10-10 m
h = 6.62×10-34 Js
C = 3 x 108ms-1
(a) The maximum energy of the photon is given by,
\(E=\frac { hC }{ \lambda } \)
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 27
(b) To produce electrons of energy 25.81 keV, accelerating potential of 25.81 kV i.e. order of 26 kV is required.

KSEEB Solutions

Question 24.
In an accelerator experiment on high- energy collisions of electrons with positrons, a certain event is interpreted as annihilation of an electron-positron pair of total energy 10.2 BeV into two γ -rays of equal energy. What is the wavelength ‘ associated with each y-ray? (IBeV – 109 eV)
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 28

Question 25.
Estimating the following two numbers should be interesting. The first number will tell you why radio engineers do not, need to worry much about photons! The second number tells you why our eye can never ‘count photons’, even in barely detectable light.

(a) The number of photons emitted per second by a Medium wave transmitter of 10 kW power, emitting radiowaves of wavelength 500 m.

(b) The number of photons entering the pupil of our eye per second corresponding to the minimum intensity of white light that we humans can perceive (~10-10 W m-2). Take the area of the pupil to be about 0.4 cm2, and the average frequency of white light to be about 6 x 1014Hz.
Answer:
(a) Power of energy transmitted per second,
E = 10 kW = 104 W = 104 Js-1
λ = 500 m
Energy of one photon,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 29

(b) Minimum intensity of white light = 1010 Wm2
Area of the pupil = 0.4cm2 = 0.4 x 104 m2
∴ Light energy falling on pupil per second
= 10-10 x 0.4 x 10-4= 0.4 x 10-14W
Frequency of white light, u = 6x 1014 Hz
∴ Energy of the photon of the white light,
hV= 6.62×10-34 x 6 x 1014J
∴ Number of photons entering the pupil of our eye per second
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 30

KSEEB Solutions

Question 26.
Ultraviolet light of wavelength 2271 A from a 100 W mercury source irradiates a photo-cell made of molybdenum metal. If the stopping potential is -1.3 V, estimate the work function of the metal. How would the photo-cell respond to a high intensity (~ 10s W m-2) red light of wavelength 6328 A produced by a He-Ne laser?
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 31
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 32
Since wavelength 6.328 Å produced by He-Ne laser and incident on the photocell is greater than,λo the photo cell will not respond.

Question 27.
Monochromatic radiation of wavelength nm ( 1 nm = 10-9 m) from a neon lamp irradiates photosensitive material made of caesium on tungsten. The stopping voltage is measured to be 0.54 V. The source is replaced by an iron source and its 427.2 nm line irradiates the same photo-cell. Predict the new stopping voltage.
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 33
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 34

Question 28.
A mercury lamp is a convenient source for studying frequency dependence of photoelectric emission, since it gives a number of spectral lines ranging from the UV to the red end of the visible spectrum. In our experiment with rubidium photo­cell, the following lines from a mercury source were used:
λ1= 3650 Å, λ2= 4047 A, λ3= 4358 A, λ4= 5461 A,λ5= 6907 A,
The stopping voltages, respectively, were measured to be:
V01 = 1.28 V, F02 = 0.95 V, Vn = 0.74 V, V04 = 0.16 V, Fos = 0 V
Determine the value of Planck’s constant h, the threshold frequency and work function for the material.
[Note: You will notice that to get h from the data, you will need to know e (which you can take to be 1.6 x 10-19 C). Experiments of this kind on Na, Li, K, etc. were performed by Millikan, who, using his own value of e (from the oil-drop experiment) confirmed Einstein’s photoelectric equation and at the same time gave an independent estimate of the value of h.
Answer:
(a) Let the respective frequencies of the five spectral lines of mercury be υ1, υ2, υ3, υ4 and υ5. Then
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 35

It represents the equation of straight line, whose slope is hυ0/e and makes an intercept role on negative V0 – axis. The plot of graph between V (along x-axis) and V0 (along y-axis) for the given data for the five spectral lines will be shown as in figure.
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 36
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 37

Question 29.
The work function for the following metals is given: Na: 2.75 eV; K: 2.30 eV; Mo: 4.17 eV; Ni: 5.15 eV. Which of these metals will not give photoelectric emission for a radiation of wavelength 3300 Å from a He-Cd laser placed 1 m away from the photocell? What happens if the laser is brought nearer and placed 50 cm away?
Answer:
λ. = 3300Å= 3300 ×10-10m
Energy of a photon of incident light,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 38
Since the work functions of Mo and Ni are greater than the energy of the photon of incident light, photoelectric emission will not occur for these metals.

If the laser is brought nearer, the intensity of incident radiation on the metal will increase. It will increase the photoemission in case of Na and K. However, no photo electric emission will .take place in case of Mo and N.

KSEEB Solutions

Question 30.
Light of intensity 10-5 W m-2 falls on a sodium photo-cell of surface area 2 cm2. Assuming that the top 5 layers of sodium absorb the incident energy, estimate time required for photoelectric emission in the wave-picture of radiation. The work function for the metal is given to be about 2 eV. What is the implication of your answer?
Answer:
Since size of the atom is about 10-10m, the effective area of an atom may be considered as 10-20 m2.
Area of each layer in sodium = 2cm2 = 2 x 10-4m2
Number of atoms in 5 layers of sodium
\(\frac { 2\times { 10 }^{ -4 }\times 5 }{ { 10 }^{ -20 } } \)
If we assume that sodium has one conduction electron per atom, then number of electrons in the 5 layers of sodium = \({ 10 }^{ 17 }\)
Energy incident per second on the surface of the photocell
= 10-5 x 2 x 10-4
= 2×10-9
Since incident energy is observed by 5 layers of sodium, according to wave picture of radiation, the electrons present in all the 5 layers of sodium will share the incident equally.
∴ Energy received by any one electron in the 5 layers of sodium
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 39
Since work function of sodium is 2 eV, an electron will be ejected as soon as it gathers energy equal to 2 eV.
∴ Time required for photoelectric emission
= \(\frac { 2 }{ 1.25\times { 10 }^{ 7 } } \) = 1.6 x 107s ≈ 0.5 year
It is contrary to the observed fact that there is no time lag between the incidence of light and the emission of photoelectrons.

Question 31.
Crystal diffraction experiments can be performed using X-rays, or electrons accelerated through appropriate voltage. Which probe has greater energy? (For quantitative comparison, take the wavelength of the probe equal to 1 A, which is of the order of inter-atomic spacing in the lattice) (me=9.11 ×10-31 kg).
Answer:
For x- ray photon of wavelength of 1Å

Question 32.
(a) Obtain the de Broglie wavelength of a neutron of kinetic energy 150 eV. As you have seen in Exercise 11.31, an electron beam of this energy is suitable for crystal diffraction experiments. Would a neutron beam of the same energy be equally suitable? Explain. (mn = 1.675 x 10-27 kg)

(b) Obtain the de Broglie wavelength associated with thermal neutrons at room temperature (27 °C). Hence explain why a fast neutron beam needs to be thermalised with the environment before it can be used for neutron diffraction experiments.
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 41
Since the interatomic spacing (≈10-10m) is about
100 times greater than the de=Broglie wavelength of 150 eV neutrons, they are not suitable for crystal diffraction experiments.

(b)T=27+273=300k
Energy of the neutron at temperature, T,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 42
Thus, thermal neutrons have wavelength of the order of interatomic spacing
(≈10-10m) and therefore they are suitable for diffraction experiments. Fast neutrons will possess wavelength quite small as compared to interatomic spacing. Hence for neutron diffraction experiments, fast neutron beam needs to be thermalised.

Question 33.
An electron microscope uses electrons accelerated by a voltage of 50 kV. Determine the de Broglie wavelength associated with the electrons. If other factors (such as numerical aperture, etc.) are taken to be roughly the same, how does the resolving power of an electron microscope compare with that of an optical microscope which uses yellow light?
Answer:
Here, V = 50 kV
Therefore, energy of electrons,
E = 50keV = 50 x 103 x 1.6 x 1019 =80 x 10-15

2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 43
The resolving power of a microscope is inversely proportional to the wave length of the radiation used. Since wavelength of the yellow light is 5,990 A i.e. 5.99 x 10-7 m, it follows that the electron microscope will possess resolving power 10 times as large as that of the optical microscope.

KSEEB Solutions

Question 34.
The wavelength of a probe is roughly a measure of the size of a structure that it can probe in some detail. The quark structure of protons and neutrons appears at the minute length-scale of  10-15m or less. This structure was first probed in early 1970’s using high energy electron beams produced by a linear accelerator at Stanford, USA. Guess what might have been the order of energy of these electron beams. (Rest mass energy of electron = 0.511 MeV.)
Answer:
As the quark structure of protons and neutrons appears a the length-scale of 10-15m, the electron beam used should be of the wavelength of this order i.e.
λ= 10-15m
Therefore, momentum of the electron beam,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 44
The electron having momentum of this order possesses speed comparable to the speed of light. Therefore, its energy can be found by using the relativistic formula for die total energy of the electron i.e.
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 45

Question 35.
Find the typical de Broglie wavelength associated with a He atom in helium gas at room temperature (27 °C) and 1 atm pressure; and compare it with the mean separation between two atoms under these conditions.
Answer:
Mass of the He-atom,
\(m=\frac { atomic\quad weight\quad of\quad He }{ Avogadro\quad Number } \frac { 4 }{ 6.02\times { 10 }^{ 23 } } \)
= 6.645 × 10-24 g = .6645 ×10-27 kg
By proceeding as in solved problem No.2.09,
find the de-Broglie wavelength of the He-atom at 27°C.
It can be obtained that de-Broglie wavelength of the He-atom,
λ= 0.73 x 10-10 m = 0.73 Å
If V is volume of the gas and dj the mean separation between two atoms in the gas, then V = d3 N,
Where N is Avogadro’s number
From the perfect gas equation
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 46
i.e the separation between the two He-atoms in the gas is much larger than the Broglie wavelength of the atom.

Question 36.
Compute the typical de Broglie wavelength of an electron in a metal at 27 °C and compare it with the mean separation between two electrons in a metal which is given to be about 2 x 10-10 [Note: Exercises 11.35 and 11.36 reveal that while the wave-packets associated with gaseous molecules under ordinary conditions are non-overlapping, the electron wave-packets in a metal strongly overlap with one another. This suggests that whereas molecules in an ordinary gas can be distinguished apart, electrons in a metal cannot be distinguished apart from one another. This indistinguishability has many fundamental implications which you will explore in more advanced Physics courses.]
Answer:
It cap be obtained that de-Broglie wavelength of the electron,
λ – 62.3 x 10-10 m = 62.3 A
Mean separation between two electrons in the metal,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 47
i.e de-Broglie wavelength of the electron is much larger than the separtation between two electrons in the metal.

KSEEB Solutions

Question 37.
Answer the following questions:

(a) Quarks inside protons and neutrons are thought to carry fractional charges [(+2/3)e ; (-1/3)e]. Why do they not show up in Millikan’s oil-drop experiment?
(b) What is so special about the combination e/m? Why do we not simply talk of e and m separately?
(c) Why should gases be insulators at ordinary pressures and start conducting at very low pressures?
(d) Every metal has a definite work function. Why do all photoelectrons not come out with the same energy if incident radiation is monochromatic? Why is there an energy distribution of photoelectrons?
(e) The energy and momentum of an electron are related to the frequency and wavelength of the associated matter wave by the relations:
\(\frac { h }{ \lambda } \)
But while the value of x is physically significant, the value of v (and therefore, the value of the phase speed v X) has no physical significance. Why?
Answer:
(a) Quarks having the fractional charges are thought to be confined within a proton or a neutron only. These quarks are bound by forces, which grow stronger, if they are tried to be pulled apart. Thus, the quarks always remain together. It follows that though fractional v charges exist in nature, the observable charges are always integral multiples of e.

(b) The motion of an electron inside electric and magnetic fields is governed by
eV = \(\frac { 1 }{ 2 } \)-mv2 = eV; eE = ma and B eV =\(\frac { m{ v }^{ 2 } }{ r } \) where the symbols have their usual meanings.
In all the three relations, e and m occur separately. Further, the value of a physical variable involved in any of these reations can be found by substituting the value of e/m.

(c) The gases keep on getting ionised due to energetic rays [X-rays, Cosmic rays, etc.,] passing through them.

However, at atmospheric pressure, the positive and negative ions are too close and recombine to form neutral gas atoms. Due to this, the gases behave as insulatiors at ordinary pressure.

At low pressures, the gas ions do not recombine as they are appreciably apart. Due to the presence of free ions, the gases start conducting at low pressures.

(d) Work function of a metal is the minimum energy required to knock out an electron (from the conduction band). Since electrons are present in a continuous band of levels, different electrons require different amounts of energy to get out of the atom. For this reason electrons knocked off by a monochromatic radiation posses different energies.

(e) Whereas energy E (= hv) of a particle is arbitrary to within an additive constant, its momentum p (= h/ λ) is not. So, for the matter wave associated with an electron the wavelength λ is physically significant and its frequency v, is not so likewise, the phase speed v λ, is also not physically significant.

2nd PUC Physics Dual Nature of Radiation and Matter Additional Questions and Answers

Question 1.
An electron and an alpha particle have the same de-broglie wavelength associated with them. How are their kinetic energies related to each other?
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 48

Question 2.
If the frequency of the incident radiation is equal to the threshold frequency, what will be the value of the stopping potential?
Answer:
From Einstein’s photoelectric equation,
hv = hv0 + eV0
v = v0
hv0=hv0 + eV0
v0=o
∴ Stopping potential = 0

Question 3.
It is harder to remove a free electron from copper than from sodium. Which metal has greater work function? Which has higher threshed wavelength?
Answer:
As it is harder to remove an electron from copper than sodium, the work function of copper is greater
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 49
As threshold wavelength is inversely proportional to the work function, its value will be more for sodium.

Question 4.
An electromagnetic wave of wavelength X is incident on a photosensitive surface of negligible work function. If the phot- electrons emitted from this surface have de-Broglie wavelength λ1 prove that \(\lambda =\frac { 2mc }{ h } { \lambda }_{ 1 }^{ 2 }\)
Answer:
Since photosensitive surface of negligible work function, K.E of emitted electron = energy of incident photon
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 50

Question 5.
Find the momentum of an x-ray photon of wavelength.
Answer:
Let p be the momentum of the x-ray photon of wavelength x, then energy of x-ray photon,
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 51

Question 6.
The work function of a substance is 4eV. The longest wavelength of light that can cause photoelectric emission from this substance is approximately
(A) 540 nm
(B) 400 nm
(C) 310 nm
(D) 220 nm
Answer:
(C) 310 nm
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 52

Question 7.
The mass of a photon at rest is
(A) zero
(B) 1.67 x 10-35kg
(C) 1 amu
(D) 9 x 1031 kg
Answer:
(A) zero

Question 8.
Which one among the following shows particle nature of light?
(A) Photoelectric effect
(B) Interference
(C) Refraction
(D) Polarisation
Answer:
(A) Photoelectric effect

KSEEB Solutions

Question 9.
Planck’s constant has the dimensions of
(A) linear momentum
(B) angular momentum
(C) energy
(D) power
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 53

Question 10.
The de-Broglie wave corresponding to a particle of mass m and velocity v has a wavelength associated with it
(A) \(\frac { h }{ mv } \)
(B) hmv
(C) \(\frac { mh }{ v } \)
(D) \(\frac { m }{ hv } \)
Answer:
2nd PUC Physics Question Bank Chapter 11 Dual Nature of Radiation and Matter 54

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function

You can Download Chapter 10 Consumption And Investment Function Questions and Answers, Notes, 2nd PUC Economics Question Bank with Answers Karnataka State Board Solutions help you to revise complete Syllabus and score more marks in your examinations.

Karnataka 2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function

2nd PUC Economics Consumption And Investment Function One Mark Questions and Answers

Question 1.
Write the meaning of consumption.
Answer:
Consumption refers to using of goods and services to attain desired satisfaction. It also represents the total quantity of products bought and used by consumers during a particular period of time.

KSEEB Solutions

Question 2.
What to do you mean by savings?
Answer:
Savings refer to the excess of income over expenditure.

Question 3.
Define investment.
Answer:
According to J.M.Keynes, investment refers to an addition to the nation’s physical stock of capital goods like roads, bridges, buildings, machines etc.

Question 4.
What is MPC?
Answer:
MPC (Marginal Propensity to Consume) refers to the ratio of change in consumption to the change in income.
2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 1
where ∆c refers to change in consumption and ∆y refers to change in the income of the consumer.

Question 5.
Give the meaning of Multiplier.
Answer:
Multiplier is the ratio of the total change in income to the initial change in investment. It expresses the quantitative relationship between increase in income and increase in investment.

Question 6.
What is APC?
Answer:
APC – Average Propensity to Consume is the ratio of consumption expenditure to income in a given period of time. APC = C/Y where C is consumption and Y is income.

Question 7.
How do you calculate MPS?
Answer:
The Marginal Propensity to save (MPS) is obtained as follows:
MPS = 1 – MPC.

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2nd PUC Economics Consumption And Investment Function Two Marks Questions and Answers

Question 1.
Define Income as per J.M. Keynes.
Answer:
According to J.M.Keynes, Income refers to total money remuneration received by four factors of production in the form of rent, wages, interest and profit. It is expressed as follows:
Y = C + I where, Y is income, C is consumption expenditure and ‘I’ investment expenditure.

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Question 2.
How is saving equal to investment?
Answer:
The equality between saving and investment is through the mechanism of rate of interest. If the saving is more than investment, the rate of interest falls, investment increases and savings comes down. When the saving is less than investment, rate of interest increases and investment comes down and the savings gets increased to the level of investment.

According to Keynes, Y = C + S and Y = C + I, therefore C + S = C + I, so S = I
Y-income, C-consumption, S-savings, I-investment.

Question 3.
State the factors which influence Marginal Propensity to Consume(MPC).
Answer:
There are two main factors which affect the Marginal Propensity to Consume viz., Subjective factors and Objective factors. The subjective factors include psychological characters of human beings, social practices and institutions etc. The objective factors include, change in the wage level, changes in fiscal policy, change in expectations, change in rate of interest etc.

Question 4.
Briefly explain the relationship between multiplier and MPC.
Answer:
The effect of multiplier depends on Marginal propensity to consume as its value is determined by MPC alone. If MPC is higher, multiplier will also be higher. The multiplier can be calculated by the following formula:

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 2

Question 5.
Differentiate between autonomous and induced investments.
Answer:

Autonomous Investment

Induced Investment

(i) It is independent of the level of income. (i) It is profit or income motivated.
(ii) It is influenced by innovations, growth of population, social and legal institutions etc. (ii) It is made by the people as a result of change in income.
(iii) It is income inelastic (iii) It is income elastic

Question 6.
Mention any four types of investments.
Answer:
The types of investments are as follows:

  1. Private Investment and Public Investment.
  2. Induced Investment and Autonomous Investment.
  3. Ex-ante Investment (Planned) and Ex-post Investment (unplanned).
  4. Gross Investment and Net Investment.

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2nd PUC Economics Consumption And Investment Function Five Marks Questions and Answers

Question 1.
What is investment? Briefly explain the various types of investment.
Answer:
According to J.M.Keynes, investment refers to an addition to the nation’s physical stock of capital goods like roads, bridges, buildings, machines etc.

The types of investment are as follows:
1. Private Investment and Public Investment: Private investment is that investment which is undertaken by private individuals, enterprises, industrialists etc. Public investments are those investments which are made by Government authorities. The intention of private investment is profit and public investment is social benefits.

2. Induced Investment and Autonomous Investment: Induced investment is made by the people as a result of change in their income level. It is profit or income motivated. So, it is income elastic. The autonomous investment is public investment which is independent of the level of income. It is income inelastic. It is influenced by innovations, growth of population, social and legal institutions etc.

3. Ex-ante Investment and Ex-post Investment: Ex-ante investment is that investment which is actually planned according to objectives and investment is made. This investment is planned in advance. The ex-post investment is that investment which cannot be planned in advance. It is that investment which arises instantly during the course of production process.

4.  Gross Investment and Net Investment: Gross investment is the total value of the asset made or created. It includes buildings, dams, roads, railways, industries, etc. The net investment is obtained by deducting depreciation from Gross Investment.

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Question 2.
Explain the J.M.Keynes consumption function in brief.
Answer:
The consumption function also called as propensity to consume refers to income consumption relationship. It is a functional relationship between Total consumption and Gross national income. The consumption function may be represented as follows:
C = f (Y). where C is consumption, Y is income and f is die functional relationship.

In fact, consumption function is a schedule of the various amounts of consumption expenditure corresponding to different levels of income. The following table shows the imaginary consumption schedule:

Income (Y) in crores Consumption(C) in crores.
0 30
50 60
120 120
180 160
240 200
300 240
360 280

The above table shows that the consumption is an increasing function of income because consumption expenditure increases with increase in income. When the income is zero, people spend out of their past savings on consumption because they must eat to live. When income is 50 crores, it is still not sufficient to meet the consumption expenditure of the community as the consumption expenditure (Rs. 60) is more than the income (Rs. 50).

When the income is equal to 120 crores the consumption is also Rs. 120 crores. After this stage, income is shown to increase by 60 crores (240 – 180) and the consumption goes up by only 40 crores (160 -120). This implies that increase in consumption is less than the corresponding increase in income.

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 3

In the above diagram, income is measured horizontally and consumption is measured vertically. 45 degree is the unity line where at all levels income and consumption are equal. The C curve is a linear consumption function based on the assumption that consumption changes by the same amount. Its upward slope to the right indicates that consumption is an increasing function of income.

B is the break-even point where C = Y or OY1 = OC1. When income rises to OY2, consumption also increases to OC2, but the increase in consumption is less than the increase in income, CC1 <  Y1 Y2. The portion of income not consumed is saved and represented as SS1.

Question 3.
Explain the investment function of Keynes in brief.
Answer:
Generally, investment means buying shares, stocks, bonds, securities existing in stock market. According to J.M.Keynes, investment refers to real investment which adds to capital stock. It leads to increase in level of income and production by increasing the production and purchase of capital goods.

Investment is the production or acquisition of real capital assets during any period of time. Capital and investment are related to each other through net investment. As the income of the community increases, consumption also increases. But, it does not increase in the same proportion. There will be a gap between income and consumption. The gap must be filled by increasing employment and production. For this, investment is needed.

The decision to invest in a new capital asset depends on whether the expected rate of return on the new investment is equal to or greater or less than the rate of interest to be paid on the funds needed to purchase this asset. It is only when the expected rate of return is higher than the interest rate that investment will be made in acquiring new capital assets.

In reality, there are three factors that are taken into consideration while making any investment decision.
They are as follows:

  1. The cost of capital asset.
  2. The expected rate of returns during its lifetime.
  3. Market rate of interest.

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Question 4.
Explain the concept of Multiplier of Keynes.
Answer:
According to Keynes, Multiplier establishes a precise relationship, given the propensity to consume, between aggregate employment and income and the rate of investment. It tells us that, when there is an increment of investment, income will increase by an amount which is K times the increment of investment. It can be expressed as follows:
K = ∆Y/∆I, where ∆Y is the change in income and ∆I is the change in investment and K is the multiplier.

Problem: If the investment increases from Rs.1000 crores to Rs.1500 crores, income may increase from Rs.2000 to Rs.3000 crores, then find the multiplier.

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 4

In the multiplier theory, the important element is the multiplier coefficient, K which refers to the power by which any initial investment expenditure is multiplied to obtain a final increase in income. The value of multiplier is determined by the MPC. The higher the rate of MPC, the higher is the value of multiplier and vice versa.

The effect of multiplier depends on Marginal propensity to consume as its value is determined by MPC alone. If MPC is higher, multiplier will also be higher. The multiplier can be calculated by the following formula:
If MPC is deducted from I, we get MPS i.e., Marginal Propensity to Save. Now the above formula becomes as follows:

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 5

If MPC is deducted from I, we get MPS i.e., Marginal Propensity to Save. Now the above formula becomes as follows:

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 6

Working of Multiplier: Multiplier works both forward and backward. In forward working, an increase in investment leads to increased production which creates income and generates consumption expenditure. This process continues in dwindling series till no further increase in income and expenditure is possible.

In backward operation, the multiplier operates backward. A reduction in investment will lead to contraction of income and consumption which, in turn, will lead to cumulative decline in income and consumption till the contraction in aggregate income is the multiple of the initial decrease in investment.

The size of multiplier varies directly with the size of the MPC. The working of multiplier can be illustrated with the help of the following diagram:

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 7

In the above diagram, the original investment is I.I (OI) and the original income is OY. S…S is the saving curve. The two curves intersect at point E. If there is an increase in investment, then the I..I curve will shift to a position above the earlier level to I,…I. Now, curves I,..I, and S..S intersect at point E1 and the new level of income OY1 is determined. This emphasizes the fact that an initial increase in investment leads to a large increase in income.

Question 5.
What is Multiplier? What is its importance?
Answer:
According to J.M. Keynes, Multiplier establishes a precise relationship, given the propensity to consume, between aggregate employment and income and the rate of investment. It tells us that, when there is an increment of investment, income will increase by an amount which is K times the increment of investment. It can be expressed as follows:
K = ∆Y/∆I, where ∆Y is change in income and ∆I is Change in investment and K is the multiplier.

The concept of multiplier is an important contribution of Keynes to the theory of income, output and employment.
The importance of multiplier is as follows:

  • The theory of multiplier highlights the importance of investment in income and employment theory.
  • The multiplier throws a spotlight on the different phases of the business cycles.
  • It helps in bringing equality between saving and investment.
  • It is an important tool in formulating economic policies.
  • It provides guidelines to achieve full employment.
  • It highlights the importance of deficit financing (Public expenditure greater than public revenue).
  • It points out the role of public investment in economic development.

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2nd PUC Economics Consumption And Investment Function Ten Marks Questions and Answers

Question 1.
Explain the concepts of saving and investment. Discuss the equality between saving and investment.
Answer:
The consumption function also called as propensity to consume refers to income consumption relationship. It is functional relationship between Total consumption and Gross national income. The consumption function may be represented as follow.

C = f (Y). where C is consumption, Y is income and f is the functional relationship.

In fact, consumption function is a schedule of the various amounts of consumption expenditure corresponding to different levels of income.

(a) Investment function:
Generally, investment means buying shares, stocks, bonds, securities existing in stock market. According to J.M.Keynes, investment refers to real investment which adds to capital stock It leads to increase in level of income and production by increasing the production and purchase of capital goods.

Investment is the production or acquisition of real capital assets during any period of time. Capital and investment are related to each other through net investment. As the income of the community increases, consumption also increases. But, it does not increase in the same proportion. There will be a gap between income and consumption. This gap must be filled by increasing employment and production. For this, investment is needed.

The decision to invest in a new capital asset depends on whether the expected rate of return on the new investment is equal to or greater or less than the rate of interest to be paid on the funds needed to purchase this asset. It is only when the expected rate of return is higher than the interest rate that investment will be made in acquiring new capital assets.

In reality, there are three factors that are taken into consideration while making any investment decision. They are as follows:

  1. The cost of capital asset.
  2. The expected rate of returns during its lifetime.
  3. Market rate of interest.

(b) Equality between saving and investment:
The equality between saving and investment is through the mechanism of rate of interest. If the saving is more than investment, the rate of interest falls, investment increases and saving comes down. When the saving is less than investment, rate of interest increases and investment comes down and the savings gets increased to the level of investment.

According to Keynes, Y = C + S and Y = C + I, therefore C + S = C + I, so S = I
Y-income, C-consumption, S-saving, I-investment.

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Question 2.
Explain Keynes consumption function. Discuss the properties of consumption function.
Answer:
The consumption function also called as propensity to consume refers to income consumption relationship. It is a functional relationship between Total consumption and Gross national income. The consumption function may be represented as follows:
C = f (Y). where C is consumption, Y is income and f is the functional relationship.

In fact, consumption function is a schedule of the various amounts of consumption expenditure corresponding to different levels of income. The following table shows the imaginary consumption schedule:

Income (Y) in crores

Consumption(C) in crores

0

30

50

60

120

120

180

160

240

200

300

240

360

280

The above table shows that the consumption is an increasing function of income because consumption expenditure increases with increase in income. When the income is zero, people spend out of their past savings on consumption because they must eat to live. When income is is 50 crores, it is still not sufficient to meet the consumption expenditure of the community which at 60 crores is more than the income. When the income is equal to 120 crores which is the basic consumption level. After this stage, income is shown to increase by 60 crores and the consumption goes up by only 40 crores. This implies that increase in consumption is less than the corresponding increase in income.

2nd PUC Economics Question Bank Chapter 10 Consumption And Investment Function 8

In the above diagram, income is measured horizontally and consumption is measured vertically.. 45 degree is the unity line where at all levels income and consumption are equal. The C curve is a linear consumption function based on the assumption that consumption changes by the same amount. Its upward slope to the right indicates that consumption is an increasing function of income. B is the break-even point where C = Y.

When income rises to OC2, consumption also increases to OY2, but the increase in consumption is less than the increase in income, C1C2 < Y1Y2. The portion of income not consumed is saved and is represented as SS1.

Question 3.
What do you mean by investment function? Discuss the types and determinants of investment.
Answer:
Generally, investment means buying shares, stocks, bonds, securities existing in stock market. According to J.M.Keynes, investment refers to real investment which adds to capital stock. It leads to increase in level of income and production by increasing the production and purchase of capital goods.

Investment is the production or acquisition of real capital assets during any period of time. Capital and investment are related to each other through net investment. As the income of the community increases, consumption also increases. But, it does not increase in the same proportion. There will be a gap between income and consumption. This gap must be filled by increasing employment and production. For this, investment is needed.

The decision to invest in a new capital asset depends on whether the expected rate of return on the new investment is equal to or greater or less than the rate of interest to be paid on the funds needed to purchase this asset. It is only when the expected rate of return is higher than the interest rate that investment will be made in acquiring new capital assets.

In reality, there are three factors that are taken into consideration while making any investment decision. They are as follows:

  1. The cost of capital asset.
  2. The expected rate of returns during its lifetime.
  3. Market rate of interest.

The types of investment are as follows:
1. Private Investment and Public Investment: Private investment is that investment which is undertaken by private individuals, enterprises, industrialists etc. Public investments are those investments which are made by Government authorities. The intention of private investment is profit and public investment is social benefits.

2. Induced Investment and Autonomous Investment: Induced investment is made by the people as a result of change in their income level. It is profit or income motivated. So, it is income elastic. The autonomous investment is public investment which is independent of the level of income. It is income inelastic. It is influenced by innovations, growth of population, social and legal institutions etc.

3. Ex-ante Investment and Ex-post Investment: Ex-ante investment is that investment which is actually planned according to objectives and investment is made. This investment is planned in advance. The ex-post investment is that investment which cannot be planned in advance. It is that investment which arises instantly during the course of production process.

4. Gross Investment and Net Investment: Gross investment is the total value of the asset made or created. It includes buildings, dams, roads, railways, industries, etc. The net investment is obtained by deducting depreciation from Gross Investment.

Determinants of Investments:
The investment depends on two factors viz., Marginal efficiency of Capital and rate of interest.
a) Marginal Efficiency of Capital (MEC): The MEC is the highest rate of returns expected from an additional unit of a capital asset over its cost. According to Kurihara “ MEC is the ratio between the prospective yield of additional capital goods and their supply price”. The prospective yield is the aggregate net returns from an asset during its lifetime, while the supply price is the cost of producing the asset.

If the supply price of a capital asset is Rs.20;000 and its annual yield is Rs.2,000, the Marginal Efficiency of this asset is 2000/20000 x 100/1 = 10%. The MEC is the percentage of profit expected from a given investment on a capital asset.

b) Rate of Interest: The investment is also determined by the rate of interest. If the rate of interest is higher, the investment will be low as MEC becomes less. If the MEC is higher than the rate of interest, there will be a tendency to borrow funds in order to invest in new capital assets. If the MEC is lower than the rate of interest, no firm will borrow to invest in capital assets. Thus the equilibrium condition for a firm to hold the optimum capital stock is where the MEC is equal to the interest rate.

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