Share capital- practice questions

Q.1 X Ltd issued 5000 equity shares of rupees hundred each at Rs.120,face value was Rs.100 company received applications for6000 equity shares allotment was made to the applicants of 5500 shares remaining applicants sent a letter of regret. A shareholder who was having 500 shares failed to pay the allotment and calls. Amount was paid Rs.50 on application Rs.40 on allotment and balance on call. The shares were reissued at the rate Rs.90 per share.pass necessary journal entries in the books of the company.

Q.2 X Ltd purchase running business of while Ltd for a consideration of Rs.16 lakh. Company paid the amount Rs.5 lakh but draft and the balance amount by issuing equity shares of rupees hundred eachat 10% security premium. Company acquired the following assets and liabilities machinery Rs.3 lakh, plant Rs.5 lakh, debtors Rs.2 lakh, Furniture Rs.5 lakh, creditors Rs.2 lakh, outstanding expenses Rs.2 lakh. Pass necessary journal entries.
Q.3 Rajesh Ltd took over the assets of Rs.7 lakh 20,000 and creditors of Rs.1 lakh offRohan Ltd for a sum of Rs.6 lakh payable 10% by a cheque and the balance by issue of fully paid equity shares of Rs.10 each. Pass necessary journal entries.

Q.4 be limited issued shares of Rs.10 lakh of Rs.10 each at a premium of Rs.10 per share. Amount was payable 20% on application 40% on allotment and balance with call. Half of the premium Call with allotment and balance with call. Company received application for 1.6 lakh shares.Pro rata allotment was made to the applicant of 1.4 lakh applicants. Remaining applications rejected. Shareholder having 500 shares fail to pay allotment call. A shareholder who applied for 700 sharesfail to pay allotment. His shares were forfeited before the call was made. All the shares were issued at Rs.12 per share. Pass necessary Journal entries.

Q.5 J Ltd invited application for issuing 50,000 equity shares of Rs.10 each at par the amount was payable as follows.
On application – Rs.2 per share, on allotment – Rs.4 per share, and on the first and final call – balance amount the issue was oversubscribed three  times. Application for 30% shares what reject it and money refunded. Allotment was made to the remaining applicants as follows,
(1)Applications 80,000–40,000 allotted, (2)applications 25,000–10,000 allotted.
Exes money paid by applicants who were allotted shares was adjusted to words Sam due on allotment.
Deepak, a shareholder belonging to category one who had applied for 1000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay allotment money. Raju belong to category second. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwords first and final call was made and duly received.The forfeited shares of the plane Raju worry issued at Rs.11 per share fully paid-up pass necessary journal entries for the about transactions in the books of the company.

Q.6 do you Limited made an issue of one lakh equity shares of Rs.10 each at a premium of 20% payable as follows, on application – Rs.2.5 Per share, on allotment Rs.4.5 per share and on the first and final call balance. Application was received for two lakh equity shares and the directors madePro  Rata allotment. Rae know who had applied for 800 shares did not pay the allotment and final call money. As a result of shares were forfeited. Later on all the shares were reissued at Rs.8 per share fully paid up. Pass necessary journal entries.

Q.7 while Ltd acquired running business of Black Ltd consideration was payable in cash Rs.6 lakh, and the equity shares of rupees hundred eachat 20% premium. Assets and liabilities were acquired as follows,
Machinery Rs.5 lakh, plant Rs.3 lakh, patents Rs.2 lakh, trademark Rs.1 lakh, furniture Rs.7 lakh, debtors Rs.3 lakh, creditorsRs.5 lakh, there was a provision for doubtful debts Rs.50,000 in the books of accounts. Pass necessary Journal entries in the books of company for the acquisition and payment. Show your working clearly for the calculation of purchase consideration.

Chapter-12 Consumer protection

Case Studies and Application based questions

Ch-12( CONSUMER PROTECTION)

1. On Sonika’s birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated buy the shopkeeper. So, she filed a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further. Can Sonika appeal against the decision of the district forum? Give reason in support of your answer. [1] CBSE,DELHI 2015

2. Himanshu purchased a new car from 'Galaxy Motors' for ` 25 lakhs. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, after two months he decided to file an appeal against it. Can Himanshu appeal against the decision of the State Commission? Give reason in support of your answer. . [1] CBSE,DELHI 2015

3. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given on the label were not legible. He complained about it to the company. The company sent a written apology stating that they will make sure that existing packets are withdrawn from the market and new packets with legible labels are soon made available. State the consumer right which Manuj exercised. [1] CBSE,DELHI 2016

4. Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her. State the consumer right which Suman exercised. [1] CBSE,OD 2016

5. Manvendra always went to a specific shop to buy all consumable and non-consumable goods. In this shop variety of products of different brands were displayed nicely and the sales person available also gave good sales presentation if required. But this shop was quite far off from his residence. His friend Annant always wondered why Manvendra wastes so much time in. going to that shop where as there were many big brand shops situated near his residence having consumable and non-consumable goods. Annant asked Manvendra the reason of going to that particular shop. Manvendra told that he was exercising one of his ‘Rights’ which he could not exercise in nearby big brand shops. State the consumer's right which Manvendra had exercised. [1] CBSE,FOREIGN 2016

6. On the eve of Diwali Ravi purchased two kilograms of sweets from Nandan Sweets. On consumption of sweets his wife fell sick and was to be hospitalized. Ravi wanted to file a case in the consumer forum but could not do so because he did not have any proof of buying the sweets from Nandan sweets. Name the document that Ravi could had obtained for filing the complaint in the consumer forum. . [1] CBSE, DELHICOMPTT. 2015

7. Pankaj purchased a car from 'Abhishek Motors' for Rs. 50 lakhs. The company offered many attractive gifts to Pankaj like - free insurance for first two years, free pick-up and drop facilities for free servicing up to 20,000 km, etc. But after a few days Pankaj noticed that the pick-up of the car was not good and there was some problems in the engine. The company serviced the car free of cost but even then Pankaj was not satisfied with its performance. 'Abhishek Motors' is not giving him the due response. So he filed a complaint in the State Commission but was not satisfied with its decision also. He was very much disturbed and after two months decided to appeal against it. Can Pankaj appeal against the decision of the State Commission? Give reason in support of your answer. [1] CBSE,FOREIGN 2015

8. On Sonika's birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she find a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reason in support of your answer. [1] CBSE,DELHI 2015

9. The consumer has the right to acquire knowledge and to be a well informed consumer throughout life.’ State what type of knowledge is required by the consumer in the above stated ‘Right’. [1] CBSE, DELHI. 2014

10. Under three-tier machinery where can a legal heir or representative of a deceased consumer file a complaint where the compensation claim is Rs 25 lakhs? [3] CBSE, DELHI. 2011

11. Pragya bought an iron of a reputed brand for Rs 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her “Right”. Identify the “Right” under which she can be protected. [1] CBSE,OD 2011

12. Reena purchased one litre of pure Deshi Ghee from a shopkeeper. After using it she had a doubt that it is adulterated. She sent it for a laboratory test which confirmed that the Ghee is adulterated. State any six reliefs available to Reena, if she complaints and the consumer court is satisfied about the genuineness of the complaint. [3] CBSE, DELHI. 2011

13. .Prakhar purchased an ISI mark electric iron from 'Bharat Electricals'. While using he found that it is not working properly. He approached the seller and complained for the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to replace this iron. The manufacturer refused and Bharat Electricals decided to file complaint in the customer court.

Can 'Bharat Electricals' do this? Why? Also explain 'who is the consumer as per Consumer Protection Act, 1986 [3] CBSE, DELHI. 2011

14. Mukul purchased a house for Rupees 30 lakhs from a housing company and found it being defective. Despite many complaints the defect was not rectified. He filed a complaint in the state commission but was not satisfied with the order. Where can be appeal and in how many days.

15. A farmer purchased seeds worth Rs. 20,000 from Bharat Fertilisers” for agricultural purposes. The seeds were very costly as they were of hybrid variety. After 6 months he noticed that the agricultural produce was not up to expected standard. He reported this matter to the seller, but he refused to accept the liability. Mention the redressal agency in which he can file a complaint.

16. On securing 95% marks in class XII, Ram’s father gifted him a gold chain. But after 2 months, Ram noticed that the gold chain was losingthe shine. He checked the mark on chain was losing the shine. He checked the mark on chain and found that it was not a proper hall mark (BIS). He lodged a complaint in the district forum, which rejected it. Not satisfied by the decision of district forum, he was very much disturbed and after 45 days, he decided to appeal further.

Can Ram appeal against the decision of the district forum? Give reasons in support of your answer.

17. Tanya purchased some household goods from a “General Store’  onreaching home, she found that one face cream, (Rs. 250) had not been billed. She became happy that, she got it without paying for. After checking the expiry date and other details, she started using it. Her face burnt due to the use of cream.

(1) Where should Tanya file the complaint for the for the cream? Justify. 

(2) Which values have been violated here?

18. ‘Sehaj bought Teak wood furniture for his drawing room from “Akshay Decors” of Kirti Nagar, Delhi for Rs. 4 lakhs. At the time of purchase the firm assured sehaj about the best quality of the said furniture and gave 2 years warranty starting that if anything goes wrong, the firm shall replace it with a new one or refund the purchase amount. But the dining table and chairs started developing cracks at various places and the polish’ became very dull within 30 days of purchase. Sehaj reported the matters to the firm and requested a number of times to replace the furniture. The firm neither paid attention to these requests nor replaced the furniture.

(1) Identity the consumer rights which have been violated by the furniture manufacturer.

(2) Where can Sehaj lodge complaint for this?

(3) Mention the values (2) which have been violated by the firm.

Chapter-11 MARKETING MANAGEMENT

Case Studies and indirect questions – Marketing Management

1. Spark Ltd.,a fire cracker manufacturing company launched a new product for Diwali which attracted many buyers. Although the product was in great demand, appropriate safety warnings were not mentioned on the packets that led to many accidents. The company was also in the news for employing children from nearby villages. a) Identify the element of marketing mix here. Also, identify and explain an important decision related to it that was not taken into consideration by the company. b) Identify any two values which were violated by the company. 

2. Haldiram is a famous chain selling a variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to the retailers. It has many outlets of its own in various cities. It also sells its products through various grocery stores so that the products are available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.

The above para describes the combination of variables used by Haldiram to prepare its market offering. Identify and explain its variables

3. Garima, Puneet, Divya and Neha are friends. They are operating different businesses. Each one has his/her own concept regarding operating their businesses.Garima believes in producing products at a large scale, thereby decreasing the average cost of the products and selling it at reasonable price.Puneet focuses on providing best quality products because he believes that a customer always wishes to buy a good quality product. The price of the product is secondary.Divya is of the belief that the customers can be persuaded and manipulated to buy the product.Neha feels that her firm has a responsibility towards the society as well. So she provides customer satisfaction along with using techniques which are environment friendly. 

Quoting the lines from the above paragraph, identify and explain the marketing concepts followed by each of them.

4. ABC Crackers Ltd., a fire cracker manufacturing company launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increased demand the company employed people from nearby villages where there is a lot of unemployment. Because of the good behavior of management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competitor imitated the products. The products of the competitor were not accepted by the consumer as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.

(a) Identify and explain the product related decision because of which consumers preferred the products of ABC Crackers Ltd.

(b) Also identify any two values which ABC Crackers Ltd. wanted to communicate to the society.

5. Radhika was a student of Business Studies of class XII. Her father was a farmer who grew different varieties of rice and was well versed about various aspects of rice cultivation. He was also selected by the government for a pilot project on rice cultivation. As a project work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers’ views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there was no pre-determined specifications in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of ‘Malabari Organic Rice’ and classified it into three different varieties namely – Popular, classic and Supreme, based on the quality. She felt these names would help her in product differentiation.

Explain the functions of marketing in the light of above case.

6. Tender Skin Care Ltd., a leading brand of skin care products has come up with a new range of anti – ageing skin cream which they claim is herbal & without any side effects.They have also set up a web site which encourages consumers to ask them questions which they genuinely & quickly answer. It is a way of connecting the customers with the company & a brilliant tactic for busting out some myths about this product.It has created transparency & makes the consumers feel personally involved with the company.

The above para denotes planned & sustained efforts taken by the company to maintain goodwill & understanding with the public. Name it.

7. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by a reputed company, Zest Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts failed, she went to a consumer activist group to seek help. The group decided to help Radha and take measures to impose restrictions on the sale of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of bringing back the lost image of the company to a Manager.

a)​Identify the concept of Marketing Management which will help the Manager getting the firm out of above crisis.

b)​Also explain the role of above identified concept by stating any two points

8. Identify the marketing management philosophies used by marketers in the following cases:

a. A detergent manufacturing company gives more quantity of detergent at the same price.

b. An artificial jewellery manufacturing company uses metal instead of glass to enhance durability of its products.

c. A chips manufacturer makes its chips available at almost all the retail outlets     of the city.

d. A book-seller sells the books after getting them binded.

e. A pharmaceutical company launches pain-killer sprays to facilitate convenient use and fast relief.

f. A large-scale retail outlet gives goods to customers in carry bags made of    paper, jute or cloth only.      

9. Name the marketing function which is concerned with informing the customers about the firm’s product.

10. Shalini purchased a halogen light heater for winter. The rods stopped functioning withn one week of purchase. The retailer of the shop expressed his inability to exchange the product as the sale had already taken place. Which concept of marketing is followed here?

11. Aashima purchased a bottle of tomato -sauce from the local grocery shop . the information provided on the bottle was not cler .She fell sick on consuming it . She filed a case in the District Forum under Consumer Protection act and got a relief .

(a) Identify the important aspect neglected by marketer in above case 

(b) Explain briefly the functions of the aspect identified in (a) above

12. Identify Sales promotion tool from following examples:

1. 100 Gm Bottle of Sauce Free With 1 kg Detergent

2. Take a 2 Night 3 Days Package At the Hotel and Get an Extra Night Stay At Just Rs 500

3. Solve a quiz and win a prize.

4. Car manufacturer’s offer to sell a particular brand of car at a discount of Rs 10,000, for a limited period.

5. A shaving cream’s offer of ‘40% Extra’

6. Small free shampoo sachets are attached to newspaper so that customers can try product

7. ‘Buy 2 soaps Get 1 Free

8. Return of empty wrapper of toothpaste and get rs 5 off on next purchase

9. Scratch a Card instantly win a prize

10. Purchase goods worth Rs 3000 and get a holiday package worth Rs 3000 free

11. Buy a car in 24 easy instalments, Eight Up Front and 16 To Be Paid as Post Dated Cheques

12. Lucky draw coupon on purchase of easy undergarment and win a car offer

Chapter-4 planning

1.“Planning is not a guarantee of success of a business.” Comment.

2.‘Though planning is an important tool of management yet it is not remedy for all types of problems’. Do you agree with this statement? Give any five reasons to support your answer.

3.“No enterprise can achieve its objectives without systematic planning.” Do you agree with this statement? Give any six reasons in support of your answer.   

4.Why does planning sometimes fail in spite of the best efforts of management? Give reasons.

1Markers

1.What is meant by ‘Pervasiveness of planning’ ?

2.Planning requires logical and systematic thinking rather than guess work. Which feature of planning is highlighted here ?

3.How does planning reduce the risks of uncertainty ?

4.Explain how controlling is not possible without planning.

5.While formulating a plan, the manager is required to make certain assumptions about the future. What are these assumptions called ?

6.How should a manager select the best possible course of action ?

7.Name the type of plan which serves as a guide for overall business planning and define the future state of affairs which the organization strives to realise.

8.Name the type of plan in which the minutest details are worked out, that is procedures, rule and budget within the broad frame work of policy.

9.Name the type of plan which is also a control device from which deviation can be taken care of.

10.‘Offering 30% jobs to women.’ What type of plan is it ?

11.Puneet electronics decides to sell television sets though exchange of old television sets. What type of plan is it ?

12.A company needs a detailed plan for its new project-Construction of shopping mall. What type of plan is it ?

13.Which limitation of planning suggest that the employees step thinking and become the blind follows of plan ?

14.In which type of plan the sequences to perform a job are determined ?

15.Which plan suggests acts and non-action of employees ?

16.‘No Smoking’-this statement is related to which type of plan ?

17.Mc Donald co. does not give its franchise to any other co. Which is running food business. This is related to which type of plan ?    

Value based questions   

            

1.What values are followed by business organizations which make plans?