BUDGETING — Commercial Studies STD 10 — Question

"Principle of contribution is a corollary to the principle of indemnity." Comment.

Explain any five principles of insurance.

Describe the different types of warehouses.

The following balances were extracted from the books of Sri S. Kumar on 31st December 2022:

	Debit (₹)	Credit(₹)
Capital		24,500
Drawings	2,000
General Expenses	2,500
Building	11,000
Machinery	9,340
Opening Stock	16,200
Power	2,240
Taxes & Insurance	1,315
Wages	7,200
Sundry Debtors	6,280
Sundry Creditors		2,500
Charity	105
Bad Debts	550
Bank Overdraft		11,180
Sales		65,360
Purchases	47,000
Scooter	2,000
Bad Debt Provision		900
Commission		1,320
Trade Expenses	1,780
Bills Payable		3,850
Cash	100
	1,09,610	1,09,610

Stock on 31st December 2022 was valued at ₹23,500.
Prepare Final Accounts for the year ended 31st December 2022.

Explain the main methods of performance appraisal.

Distinguish between direct costs and indirect costs.

The following trial balance was extracted from the books of A. Harding, as on 31st March, 2023:

	Debit (₹)	Credit (₹)
Capital		20,100
Drawings	1,500
Cash in Hand and at Bank	1,400
Petty Cash	100
Cash Purchases and Sales	10,000	20,000
Credit Purchases and Sales	12,000	25,000
Returns	2,000	1,000
Discount	400
Carriage Inwards	500
Salaries	6,000
Sundry and Petty Expenses	1,200
Opening Stock	5,000
Bad Debts	600
Rent	1,500
Machinery	36,000
Furniture	5,000
Debtors and Creditors	5,000	10,000
Stationary	2,500
Commission		200
Bank Loan		14,400
	90,700	90,700

Prepare the complete set of final accounts for Mr. A. Harding, after incorporating the following adjustment:
(i) Closing stock is ₹26,000.

How can the management of an organisation use the budgetary control system for planning and control?

Mr. P.H. Mehta is in business. The following balances were extracted from the books as on 31.12.2022. You are required to prepare the Trading Account and the Profit and Loss Account for the year ended 31.12.2018 and the Balance Sheet as on that date.

	Debit (₹)	Credit (₹)
Capital		1,98,000
Drawings	10,000
Purchases and Returns Outward	1,18,800	500
Salaries	21,650
Rate and Taxes	950
Office Lighting and Cooling	2,700
Import Duty	2,200
Insurance	250
Agency Commission	900
Advertising	5,000
Returns Inward and Sales		3,48,500
Bad Debts	800
Postage and Telegrams	800
Discount Received		150
Carriage for Door Delivery to Customers	1,400
Opening Stock	6,200
Wages	27,700
Plant and Machinery	2,05,000
Land and Buildings	1,10,000
Furniture and Fittings	3,000
Sundry Debtors and Creditors	39,600	20,000
Cash at Bank	10,000
Petty Cash Balance	200
	5,67,150	5,67,150

Closing stock on 31.12.2022 was ₹48,700.

(a) Mr. Khanna, a manager in a public limited company, is turning sixty years of age and is about to retire from the organisation after a long and dedicated service. In this context answer the following:
(i) Name any two Acts pertaining to Mr. Khanna's retirement.
(ii) Discuss the reasons why these two Acts need to be effected in organisations.
(b) Explain two essential features of social security.