CLASS - XII

QUARTERLY EXAMINATION
Time allotted = 3 Hours Marks = 100 Marks Date : 27/06/2021

SPECIAL REMARKS
If any of the student has not completed the below mentioned course or if those topics
are not covered in M.P. Board Syllabus; You may SKIP those questions and add a note
regarding this in your answer sheet on the first page.

General Instructions:
• Please mention your Name, Roll no. and Batch on your answer sheet.
• Test consists of 3 Sections. Attend all the questions in proper sequence in each section.
SECTION A: Accounts (40 Marks) ;
SECTION B: Business Studies (30 Marks) ;
SECTION C: Economics (30 Marks)

SECTION – A (ACCOUNTS) : 40 Marks

Ques.1 X Ltd. Has a current ratio of 3:1 and the quick ratio of 2:1. If the excess of
current assets over quick assets are represented by inventory is ₹ 40,000. Calculate
the value of current assets and current liabilities. (3 Marks)
Ques. 2 A firm’s average profits are ₹ 70,000. It includes an abnormal profit of
₹ 5, 000. Capital invested in the business is ₹5,50,000 and the normal rate
Of return is 10%. Compute Goodwill at four times the Super Profit.
( 3 Marks )

Ques. 3 A and B are partners in a business sharing profits and losses in the ratio of
2:1 with capital ₹ 5,00,000 and ₹ 4,00,000 respectively. A withdrew the following
amounts during the tear to pay hostel expenses of his son.
1st April ₹ 10,000
st
1 June ₹ 9,000
st
1 November ₹ 14,000
st
1 December ₹ 5,000
B withdrew ₹ 15,000 on the first day of April, July, October and January to pay rent
for accommodation of his family. He also paid ₹ 20,000 per month as rent for the
office of partnership which was in a nearby shopping complex. Calculate interest
on drawings @ 6% p.a. (3 Marks)

Ques. 4 (a) From the given information, calculate Stock - Turnover Ratio:
Sales ₹ 4, 00, 000
Gross Profit 25% on Cost
Opening Stock was 1/3 rd of the value of Closing Stock and Closing
Stock was 30% of sales. (3 Marks)

(b) A business has a Current Ratio of 3:1 and Quick Ratio of 1.5 : 1. The
Working capital is ₹ 2, 00, 000. Calculate the Total Current Assets and
Stock.
(3 Marks)
Ques. 5 J and K are partners is a firm. Their capitals are: J ₹ 3,00,000 and K ₹
2,00,000. During the year ended 31st March, 2010 the firm earned a profit of ₹
1,50,000. Assuming that the normal rate of return 20%, Calculate the value of
goodwill of the firm:
(i) By capitalization method and
(ii) By super profit method if the goodwill is valued at 2 years’ purchase of
super profits.
(3 Marks)

Ques. 6 L, M and N are partners in the firm sharing profits in the ratio of 3:4:5.
Their fixed capitals were L ₹4,00,000; M ₹5,00,000 and ₹6,00,000 respectively. The
partnership deed provided the following:
(i) Interest on capital @6% p.a.
(ii) Salary of ₹30,000 p.a. to N.
(iii) Interest on partners drawings will be charges @ 12% p.a.
During the year ended 31st March 2020, the firm earned profit of ₹2,70,000. L
withdrew ₹10,000 on 1st April 2020, M withdrew ₹12,000 on 30th September 2020
and N withdrew ₹15,000 on 31st December 2020. Prepare a Profit and Loss
Appropriation Account for the year ended 31st March, 2021.
(3 Marks)

Ques. 7 From the following calculate the following ratios:

(i) Liquid Ratio
(ii) Proprietary Ratio.
Information Amount (₹)
Revenue from operations (Net Sales) 5,00,000
Gross Profit 1,50,000
Total Current Assets 3,00,000
Closing Stock 25,000
Prepaid Insurance 5,000
 Total Current Liabilities 1,50,000
Share Capital 4,00,000
Reserves and Surplus 50,000
Fixed Assets 6,00,000
(3 Marks)

Ques. 8 Sharma and Verma were partners in a firm sharing profits in the ratio of
4:1. Their capitals on 1st April 2020, were Sharma ₹5,00,000 and Verma ₹1,00,000.
The partnership deed provided that Sharma will get a commission of 10% on the
net profit after allowing a salary of ₹5,000 per month to Verma. The profits of the
firm for the year ended 31st March 2021 was ₹2,80,000. Prepare Profit and Loss
Appropriation Account of Sharma and Verma for the year ended 31st March 2021.
(4 Marks)

Ques. 9 From the following calculate :

(i) Gross Profit Ratio
(ii) Working Capital Turnover Ratio.
Information Amount (₹)
Revenue from operations 30,00,000
Cost of revenue from operations 20,00,000
Current Assets 6,00,000
Current Liabilities 2,00,000
Paid up share capital 5,00,000
(4 Marks)
Ques. 10 A partnership firm earned net profits during the last three years as
follows:-
YEAR NET PROFIT
2018-2019 1,90,000
2019-2020 2,20,000
2020-2021 2,50,000
The capital employed in the firm throughout the above-mentioned period has
been ₹4,00,000. Having regard to the risk involved, 15% is considered to be a fair
return on the capital. The renumeration of all the partners during this period is
estimated to be Rs. 1,00,000 p.a.
Calculate the value of goodwill on the basis of:
(i) 2 years’ purchase of super profits earned on average basis during the
above mentioned 3 years and;
(ii) By capitalization Method. (4 Marks)

Ques. 11 Lalan and Balan were partners in the firm sharing profits in the ratio of
3:2. Their fixed capital on 1st April 2020, were Lalan: ₹1,00,000 and Balan
₹2,00,000. They agreed to allow interest on capital @ 12 % p.a. and interest on
drawings @ 15% p.a. the firm earned profit before the above adjustments of
₹30,000 for the year ended 31st March 2021. The drawings of Lalan and Balan
during the year were ₹3,000 and ₹5,000 respectively. Showing your calculation
clearly, prepare profit and loss appropriation account of Lalan and Balan. The
interest on capital will be allowed even if the firm incurs losses.
(4 Marks)
 SECTION – B (BUSINESS STUDIES) : 30 Marks

General Instructions:
▪ Marks are indicated against each question. Answers should be brief and to
the point.
▪ For questions carrying 3 marks – Word Limit 50 to 75 words.
▪ For questions carrying 4 marks – Word Limit 150 words.
▪ For questions carrying 6 marks – Word Limit 200 words.

Ques. 1 “A successful enterprise has to achieve its goals effectively and efficiently”
Explain. (3 Marks)

Ques. 2 With changes in the consumption habits of people, Neelesh, who was
running a sweet shop, shifted to the chocolate business. On the eve of Diwali, he
offered chocolates in attractive packages at reasonable prices. He anticipated huge
demand and created a website chocolove. com for taking orders online. He got a
lot of orders online and earned huge profits by selling the chocolate.

Identify and explain the dimensions of business environment discussed in the

above case. (3 Marks)

Ques. 3 XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a
remote village as there was no reliable supply of electricity in rural areas. The
revenue earned by the company was sufficient to cover the costs and the risks. As
the demand of lanterns was increasing day- by-day, the company decided to
increase production to generate higher sales. For this, they decided to employ
people from a nearby village as very few job opportunities were available in that
area. The company also decided to open schools and creches for the children of its
employees. Identify and explain the objectives of management discussed above.

(4 Marks)
Ques. 4 Telco Ltd. manufactures files and folders from old clothes to discourage the
use of plastic files and folders. For this, they employ people from nearby villages in
order to generate employment opportunities for the villagers as well as because
cost of labour was comparatively cheaper. An employee, Harish, designeda plan for
cost reduction but it was not welcomed by the production manager.
Another employee gave some suggestions for improvements in design, but it alsowas
not appreciated by the production manager.
State and Explain in detail the principle of management that is being violated in the
aboveparagraph
(4 Marks)

Ques. 5 Esha works as the cost and risk management head of a company in power
sector. As a result of her excellent managerial competence, the company is able to
reduce costs and increase productivity. The company belongs to infrastructure
sector, wherein regular amendments are made in the government regulations and
policies. She holds regular meetings to ensure that people in her department are
not only aware of the related changes but are also able to adapt to these changes
effectively. This helps the company to maintain its competitive edge. She motivates
and leads her team in such a manner that individual members are able to achieve
personal goals while contributing to the overall organisational objective. In the
process of fulfilling her duties for the growth of the organisation, she helps in
providing competitive services, adopting new technology, creating more
employment opportunities etc. for the greater good of the people at large.
In context of the above case:
Identify the various reasons that have made management so important by quoting
lines from the paragraph.

(4Marks)
Ques. 6 Nutan Tiffin Box service was started in Mumbai by the Mumbai
Dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to provide
prompt and efficient services by providing tasty homemade tiffin to all office goers
at the right time and place. The service is uninterrupted even on the days of bad
weather, political unrest and social disturbances. Recently, they have started
online booking system through their website ‘mydabbawala.com’. Owing to their
tremendous popularity amongst the happy and satisfied customers and members,
the Dabbawalas were invited as guest lecturer by top business schools. The
Dabbawalas operate in a group of 25-30 people alongwith a group leader. Each
group teams up with other groups in order to deliver the tiffins on time. They are
not transferred on frequent basis as they have to remember the addresses of their
customers. They follow certain rules while doing trade—no alcohol during working
hours; no leaves without permission; wearing white caps and carrying ID cards
during business hours.
Recently, on the suggestion of a few self-motivated fellow men, the Dabbawalas
thought out and executed a plan of providing leftover food to slum children. They
have instructed their customers to place red sticker if food is left in the tiffin, to be
fed to poor children later.
State the principles of management given by Fayol in the case study and also
characteristics of management mentioned in the above case.
(6 Marks)

Ques. 7 Naman and Govind after finishing their graduation under vocational
stream decided to start their own travel agency which will book Rail Tickets and
Air Tickets on commission basis. They also thought of providing tickets within ten
minutes through the use of internet. They discussed the idea with their Professor
Mr. Mehta who liked the idea and suggested them to first analyse the business
environment which consists of investors’, competitors and other forces like social,
political etc. that may affect their business directly or indirectly. He further told
them about the technological improvements and shifts in consumer preferences
that were taking place and hence they should be aware of the environmental
trends and changes which may hinder their business performance. He emphasized
on making plans keeping in mind the threat posed by the competitors, so that
they can deal with the situation effectively. This alignment of business operations
with the business environment will result in better performance.

(i) Identify and state the component of business environment highlighted in

the above Para.
(ii) State any two features of business environment as discussed by Professor
Mehta with Naman and Govind.
(iii) Also state two points of importance of business environment as stated
by Professor Mehta in the above situation.
(6 Marks)
 SECTION – C (ECONOMICS) : 30 Marks

Ques. 1 Explain the “Bankers’ Bank function” of the central bank. (3 Marks)

Ques. 2 What were the main causes of India’s agricultural stagnation during the
colonial period? (3 Marks)

Ques. 3 Explain the problem of double coincidence of wants faced under barter
system. How has money solved it? . (3 Marks)

Ques. 4 Though public sector undertakings incur huge losses and are a drain on the
economy’s resources yet public sector is very essential for a country.
Discuss the reason of choosing of public sector at the time of independence in the
light of this fact.
(3 Marks)
Ques. 5 What was the two-fold motive behind the systematic deindustrialization
affected by the British in pre-independent India?
(3 Marks)

Ques.6 State any three points of distinction between Central Bank and Commercial
Banks. (3 Marks)

Ques. 7 State the functions of money.

(4 Marks)

Ques. 8 Were there any positive contributions made by the British in India?
Discuss.
(4 Marks)
Ques. 9 What is Green Revolution? Why was it implemented and how did it
benefit the farmers? Explain in brief. (4 Marks)