Professional Documents
Culture Documents
SOLUTIONS TO
INSTANT PAPER
COMMERCE PAPER – II
MAY 2006
PART – A
I. Answer any two of the following questions, not exceeding 40 lines each.
2 x 10 = 20
(a) What is the role of retailer in modern marketing?
Ans.:
Role of retailer in modern marketing
Retailing means the sale of goods to the final consumers. A person who carries on
this business is called a retailer. The retailer purchase goods in small quantities and selling
them to ultimate consumers.
I. Services to manufacturers and wholesalers :
1. Opportunity to present products : The retailers give an opportunity to
manufacturers or wholesalers to present their products to consumers. The retailers
arrange for the display of goods, supply necessary information about products etc.
2. Concentrate on production : The manufacturers are relieved from the burden of
selling goods in small quantities to the consumers and concentrate only on
production activity. This saves their time and efficiency to concentrate on
production.
3. Provides information : The retailers provide valuable information to the
manufacturers such as trends, in marketing changes, in fashion, etc., which have
bearing on consumer demand. This will help to manufacturers to bring necessary
steps for change.
4. Marketing of new product : Retailer renders valuable services in promoting new
product in the market.
5. Reduce the risk of loss : The retailers in direct contact with the customers and help
the manufacturers to reduce the risk of loss by giving information about quality,
quantity and price range is required.
Commerce – II 2
During 1966, under the able leadership of late J.R.D. Tata and Rama Krishna Bajaj
and same progressive manufacturers and traders came together and formed the Fair Trade
Practices Association in Mumbai. The main objects of this association are to codify existing
trade practices and to set up effective machinery for their implementation in an organised
way so as to create public confidence in business community. In 1974, Sri Bindu Madhav
Joshi started Akhil Bharatiya Gnhak Panchayat in Pune. This organisation organised
consumer agitation successfully in Maharashtra.
Many consumer organisations have come up in almost all parts of the country after
1975. In 1978, the Consumer Education and Research Centre was set up in Ahmedabad. It
is a public trust. In appropriate cases this organisation files petitions, writs and complaints in
the Supreme Court, High Court, the Monopolicies and Restrictive trade practices
commission. The other association which are protecting the interest of consumers in India
include Consumer Unity and Trust society, Calcultta, Consumer Education Centre,
Hyderabad and Karnataka, Consumer Service society, Bangalore.
Present status :
Today, there are a number of voluntary associations, operating in our country. If
consumer organisations join together to form larger confederations, it is hoped that the
consumer movements will gain momentum to solve the problems of consumers. If the
Government Protects its citizens till awareness is generated, there is no doubt that the
consumer movement in our country will develop and catch momentum in its real spirit.
implementation is very poor. This is due to the loopholes in law and lack of co-
ordination at different levels of machinery and also their illiteracy.
4. Acceptance of the proposal : After verifying the proposal form, medical report,
proof of age etc., if everything is satisfactory, the insurance company accepts the
proposal and asks to pay the first premium.
5. Payment of Premium : The policy holders have to pay the insurance premium,
which may be monthly, quarterly, half-yearly or annually. A grace period of 15 days is
allowed. Premium is payable in advance. If the premium is not paid the policy is
cancelled but may be renewed.
6. Coverage of Risk : After the receipt of the first premium the risk starts and
continues, so far the premium are paid on due dates. Finally, insurance policy is sent
with all the terms and conditions to the insured.
Ans.:
Home Trade (Inland Trade) :
Internal trade refers to the trade within the geographical boundaries of a country.
Foreign Trade (External Trade) :
It refers to the trade which is spread beyond the boundaries of a country.
The following are the differences between these two trades.
3. Store : It has the ability to store any amount of data or information. The internal
memory is built-up in 1K to K modules, where K equals lozy storage locations.
4. Accuracy : There is no scope for inaccuracy in the results giving by the
computer. Incorrect calculations, errors, mistakes do not take place in a computer
system.
5. Reliability : Today, computers are extensively used because of their reliability.
The users can depend on the computers with confidence.
6. Retrieval : Another feature of electronic machine is that it facilitates retrieval of
data stored in the computer. It means recollection of stored data when required.
7. Logic : Computer has its own logic to think and decide for its own internal and
external control and to give desired results.
8. Memory : Another important characteristics of a computer is that it has a brain of
its own with brilliant memory. It can accept and store any information for a long
time.
9. Consistency : Computers are highly consistent but not human beings. In
performing routine, repetitive and heavy work, they never get fatigue or bored.
They are highly suitable for carrying out voluminous work.
10. Flexibility : A computer is a very flexible machine and can be used for any
purpose, time and condition.
11. Communication : Computer has the capability to communicate with others and
exchange information between them and tog et interconnected under the
networking system.
12. Multi-user and friendly user : Computer with the mechanism of multi user
permits many individuals to use the same computer simultaneously for other
requirements of all the users too.
interest must be proved. Only a person who has insurable interest in the life of insured
can effect the contract of life insurance. The following have the insurable interest.
i. A child has an insurable interest in the life of his father.
ii. A person has unlimited insurable interest in his own life.
iii. A husband has an insurable interest in the life of his wife.
iv. A wife has it in the life of her husband.
v. A creditor has an insurable interest, to the extent of his debt, in the life of his
debtor.
vi. A partner in business has an insurable interest in the life or lives of his co-partner
or co-partners.
vii. A company has an insurable interest in the life of a senior officer whose death
may seriously affect the profits of the business of that company.
The time when insurable interest should exist differs according to the nature of
insurance. In life assurance, the assured should have insurable interest at the time the
contract was entered into. In marine insurance it should be at the time of loss. But in fire
insurance, insurable interest at the time the contract was entered into. In marine
insurance it should be at the time of loss. But in fire insurance, insurable interest must
exist not only at the time the contract was entered into, but also at the time of loss.
(b) E – commerce
Ans.:
E-Commerce
It is the process of conducting business by electronic means. It means the use of
computer and other relating electronic equipment to do business through internet. E-
Commerce is a process of buying and selling of goods or services online through internet
any time and any where and payment by electronic credit cards.
(c) Outdoor media
Ans.:
Outdoor Media
Outdoor or mural advertising is the oldest form of advertising and remains the most
common media even today. It is also called `wall advertising’. Outdoor advertising consists
of a display of advertisements out of door which may be in the form of posters, painted
signs, field signs, neon light signs, hoardigns and posters carried by sandwitchmen. This is
also referred to as mural advertising as posters consisting of a picture, are often placed on
walls particularly a large one, printed directly on a wall or large phtograph attached directly
to a wall. Small playcards or posters placed outside or inside carriages such as trams,
Commerce – II 11
delivery –vans, buses, railway carriages etc., are come under this category. The new form of
advertising by using balloons, kites and smoke-writing in the sky is also a part of outdoor
advertising.
(d) Write two powers of District Forum.
Ans.;
Powers of District Forum
District Forum shall have the same powers are vested in a Civil Court under the
Code of Civil procedure, 1908 while trying a suit in respect of the following matters,
namely ;
(i) the summoning and enforcing the attendance of any defendant or witness
and examining the witness on oath;
(ii) the discovery and production of any document or other material object
produceable as evidence.
(iii) The reception of evidence on affidavits;
(iv) The requisitioning of the concerned analysis or test from the appropriate
laboratory or from any other relevant source
(v) Issuing of any commission; (i.e., warrant conferring authority) for the
examination of any witness; and
(vi) Any other matter which may be prescribed.
(e) Excise duty
Ans.:
Excise Duty
Excise means a tax or duty on goods produced within the country, either in the process
of their manufacture or before their sales to consumers. The central excise duties have been
an important and growing source of revenue to the government, as more than thirty five per
cent of the total revenue comes from this source. However, excise revenue from items such
as motor spirit, cement, tyres, steel etc., is continuously increasing. The revenue from sugar,
tobacco, textiles and matches present a fluctuating trend in our country. This is due to yearly
fluctuations in the production of those commodities.
(f) Bears
Ans.:
Bears
Commerce – II 12
Bear is a speculator, who anticipates fall in the price of securities. He sells securities
for future delivery. He sells securities for future delivery. He sells securities which he does
not possess. He sells with the hope to buy the securities at a lower price before the date of
delivery. In India, a bear is known as a mandiwala.
(g) Motivation
Ans.:
Motivation
Motivating is the work a manager performs to inspire, encourage and impel people to
take required action. According to M.H. Maslow, it is the process of stimulating people to
take desired course of action. In order to motivate employees, managers must provide a
congenial working atmosphere coupled with attractive incentives.
(h) Key – board
Ans.:
Key Board
It is a primary input device to the computer. The key board has ordinary keys of standard
manual or electronic typewriter. Besides, the computer key board has some special keys to
perform some special function. Each key bears a character or characters both of numbers,
alphabet and other symbols.
PART – B
Solution IV:
Revaluation Account
Dr. Cr.
Particulars Amount Particulars Amount
Rs. Rs.
To Bad debts 1,000 By Buildings 7,000
Reserve
To Depreciation
Furniture 1,000
Machinery 2,500 3,500
To Capitals
Harshitha 1,500
Sindhu 1,000 2,500
7,000 7,000
Capital Account
Dr. Cr.
Particulars Harshitha Sindhu Particulars Harshitha Sindhu
To Balance c/d 95,500 57,000 By Balance b/d 40,000 20,000
By Revaluation a/c 1,500 1,000
By General Reserve 9,000 6,000
By Goodwill 45,000 30,000
95,500 57,000 95,500 57,000
Commerce – II 13
Balance sheet as on …
Dr. Cr.
Liabilities Amount Assets Amount
Rs. Rs.
Creditors 20,000 Cash 13,000
Bills payable 5,000 Bank 7,000
Capitals: Debtors 9,000
(Rs.10,000 – 1,000)
Harshitha 95,500 Furniture 19,000
(Rs.20,000 – 1,000)
Sindhu 57,000 Machinery 22,500
(Rs.25,000 – 2,500)
Shravani 10,000 1,62,500 Buildings 42,000
(Rs.35,000 + 7,000)
Goodwill 75,000
1,87,500 1,87,500
Solution V (a):
Consignment Account
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs.
To Goods sent 20,000 By Kiran a/c 25,000
Consignment a/c
To Cash 1,500 By Stock 7,167
To Kiran 1,500
To Kiran 2,500
To Profit & Loss a/c 6,667
32,167 32,167
Kiran Account
Dr. Cr.
Particulars Amount Rs. Particulars Amount Rs.
To Cash 25,000 By Cash 5,000
By Consignment a/c 1,500
By Consignment a/c 2,500
By Bank 16,000
25,000 25,000
Solution V (b):
Income and Expenditure Account for the year ended 31-12-1999
Amount Amount Amount Amount
Expenditure Income
Rs. Rs. Rs. Rs.
To Salaries 20,000 By Subscriptions 35,000
Add: Outstanding 3,500 23,500 Less: 1998 1,500
To Rent 7,000 33,500
To Printing & 1,000 Less: 2000 2,500
Stationery
Add: Outstanding 500 1,500 31,000
To Postage 500 + 1999 Outstanding 2,000 33,000
Commerce – II 14
1. Wear and Tear : The value of fixed assets decreases because their use in the
business. The more an asset is used, the more is the decrease in its value.
2. Depletion : An asset may get exhausted through working. This is the case with
mines, minerals, oil wells etc.
3. Obsolescence : Due to technological innovations changes in fashions etc., the
assets like plant and machinery may become obsolete early.
4. Laps of Time : In the passage of time, the value of certain assets may decline,
even if they are not used.
1. Omission of Posting
2. Omission of Casting
3. Omission of carry forward
4. Wrong Posting
5. Wrong totalling
6. Wrong carry forward
7. Wrong balancing
8. Omission of an amount from Trial Balance
Total of Products
Average Due Date Based Date
Total of Amounts
3,30,500
25 January
7,000
= January 25 + 47
= March 12, 2000