TS Intermediate Commerce 1st Year Previous Paper 2023

 

SECTION A

(Answer ANY TWO of the following questions not exceeding 40 lines each)

1. Define Partnership. Discuss its any four advantages and four disadvantages.

A partnership is a business arrangement where two or more individuals share the ownership and management of a business. It involves mutual agency, where each partner is authorized to act on behalf of the business, and mutual sharing of profits and losses.

Advantages:

1. Shared Responsibility: Partners share the workload and management responsibilities, reducing the burden on individual partners.
2. More Capital: The partnership can pool resources from all partners, providing more capital for business operations.
3. Flexibility: Partnerships allow for flexibility in decision-making and operations.
4. Tax Benefits: Partnerships are not taxed separately, and income is taxed only when it is distributed among partners.

Disadvantages:

1. Unlimited Liability: In a general partnership, partners are personally liable for the business’s debts.
2. Disputes: Disagreements between partners may arise, affecting the business’s functioning.
3. Instability: The partnership can dissolve if one partner decides to leave or dies.
4. Limited Resources: Though there is more capital, it may still be limited compared to corporations, hindering expansion.

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2. What is Memorandum of Association? Explain its clauses.

The Memorandum of Association (MoA) is a legal document that defines the scope and objectives of a company. It is a crucial document required to incorporate a company and outlines the fundamental conditions under which the company operates.

Clauses of MoA:

1. Name Clause: States the company’s name, ensuring it is unique and does not infringe upon other registered names.
2. Registered Office Clause: Specifies the location of the company’s registered office within the country.
3. Object Clause: Defines the objectives and scope of the company’s operations.
4. Liability Clause: Specifies the extent of liability of the members of the company (limited or unlimited).
5. Capital Clause: States the total capital that the company intends to raise and the distribution of shares.

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3. What is business finance? Explain its need and significance in business organizations.

Business finance refers to the management of funds and resources required to operate a business. It involves obtaining capital, managing cash flow, investing, and ensuring that the company has enough resources to meet its financial obligations.

Need and Significance:

1. Operational Funding: Business finance ensures that a company can meet its day-to-day expenses and operational needs.
2. Growth and Expansion: It provides the necessary funds for growth, such as expanding product lines or entering new markets.
3. Risk Management: Proper finance management helps businesses manage financial risks, such as market volatility and unexpected expenses.
4. Profitability and Stability: Adequate finance ensures that a company maintains liquidity, reduces financial strain, and remains stable and profitable in the long term.

SECTION-B

(Answer ANY FOUR of the following questions not exceeding 20 lines each)

4. Define Business. Explain its any four characteristic features.

Business refers to the organized effort of individuals to produce and sell goods and services for profit. It involves various activities such as production, distribution, and marketing.

Features of Business:

1. Economic Activity: Business activities aim to generate profit by providing goods and services.
2. Exchange of Goods and Services: Business involves the exchange of goods and services for money or other goods.
3. Risk and Uncertainty: Business involves risks related to market competition, demand fluctuations, and financial issues.
4. Profit Motive: The main objective of business is to earn profit, ensuring sustainability and growth.

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5. What are the features of sole proprietor? (Any five).

The sole proprietorship is a business owned and operated by a single individual.

Features:

1. Single Ownership: The business is owned and controlled by one person.
2. Unlimited Liability: The proprietor is personally liable for all business debts and obligations.
3. Full Control: The sole proprietor has full control over decision-making.
4. Direct Profits: The owner enjoys all profits from the business.
5. Limited Resources: Funding is primarily limited to the owner’s savings or personal loans.

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6. What are the features of Co-operative Societies? (Any five).

A Co-operative Society is an association of individuals who voluntarily work together to meet common economic, social, and cultural needs.

Features:

1. Voluntary Membership: Membership is open to all who meet the basic criteria.
2. Democratic Control: Each member has one vote, regardless of their shareholding.
3. Profit Distribution: Profits are shared among members based on their contribution, not on their investment.
4. Cooperation and Mutual Help: Members work together for mutual benefit, sharing resources.
5. Limited Liability: Members’ liability is limited to the extent of their shareholding.

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7. Define E-business. Explain four benefits of E-business.

E-business refers to conducting business transactions and activities over the internet, such as buying, selling, and service delivery.

Benefits:

1. Cost Efficiency: E-business reduces operational costs by eliminating the need for physical stores and staff.
2. Wider Reach: Businesses can reach a global audience, expanding market opportunities.
3. 24/7 Availability: E-businesses operate around the clock, providing convenience to both customers and businesses.
4. Improved Customer Service: Automation and online tools improve customer interaction and service delivery.

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8. What are the sources of short-term finance? (Any five).

Short-term finance is used to meet immediate financial needs and is typically repaid within a year.

Sources:

1. Trade Credit: Suppliers allow businesses to buy goods on credit with payment due later.
2. Bank Overdraft: A facility provided by banks to withdraw more money than the account balance.
3. Short-term Loans: Loans provided by banks or financial institutions with a repayment period of less than a year.
4. Commercial Paper: Unsecured promissory notes issued by companies to raise short-term funds.
5. Factoring: Selling receivables (accounts payable) to a third party at a discount for immediate cash.

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9. Define MNC and explain four advantages of MNCs.

An MNC (Multinational Corporation) is a company that operates in multiple countries and has facilities, offices, or branches in at least two countries.

Advantages:

1. Global Reach: MNCs can access global markets and expand their customer base.
2. Economies of Scale: MNCs benefit from large-scale production, reducing costs.
3. Access to Resources: MNCs can access resources, technology, and raw materials from different countries.
4. Job Creation: MNCs create employment opportunities in various countries where they operate.

SECTION C

(Answer ANY FIVE of the following questions not exceeding 5 lines each)

10. What is Genetic industry?

A Genetic Industry refers to industries that focus on breeding plants or animals to enhance certain desirable traits, such as in agriculture and animal husbandry.

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11. What is Home trade?

Home trade refers to the buying and selling of goods and services within a country, without any international trade involved.

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12. Define Joint Hindu family business.

A Joint Hindu Family Business is a business owned and managed by the members of a Hindu undivided family, typically headed by a Karta (the eldest male member).

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13. What is statutory company?

A statutory company is a company that is formed under a special act of Parliament or state legislature, such as public sector enterprises.

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14. Who is a professional promoter?

A professional promoter is an individual or firm hired to set up a business and manage its formation, including legal and financial aspects.

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15. What do you mean by working capital?

Working capital refers to the capital needed to cover a company’s day-to-day operational expenses, calculated as current assets minus current liabilities.

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16. Explain debentures.

Debentures are debt instruments issued by companies to raise capital, where the company promises to repay the principal amount along with interest.

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17. What is micro-enterprise?

A micro-enterprise is a small-scale business typically involving few employees and low capital investment, often focusing on local markets.

SECTION D

Answer the following question

18. From the following Trial Balance, prepare Sri Ravi Trader’s final account
for the year ended 31-03-2021:

Account	Debit Amount (₹)	Credit Amount (₹)

Adjustments:

(1) Outstanding salaries 500

(2) Closing stock 5,000

(3) Prepaid insurance 400

(4) Outstanding wages 500

(5) Depreciation on machinery 10%

Answer:

23. Record the following transactions in the proper subsidiary books:

Date	Particulars	Amount (₹)
April 1	Purchased goods from Mohan (Trade Discount 10%)	5,000
April 4	Goods purchased from Krishna	4,500
April 9	Returned goods to Mohan	600
April 18	Returned goods to Krishna	500
April 24	Purchased goods from Ravi	3,000

Answer:

Errors of Omission occur when a transaction is completely or partially omitted from the books of accounts. This means the transaction is not recorded at all or only partially recorded.

• Complete Omission: The entire transaction is omitted (e.g., not recording a purchase).
• Partial Omission: Only part of the transaction is omitted (e.g., not recording a corresponding entry in accounts receivable).

SECTION-G

Answer ANY FIVE of the following questions: