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					   MARKING SCHEME


               2006



             CLASS XII
      COMMERCE SUBJECTS




CENTRAL BOARD OF SECONDARY EDUCATION
               DELHI
      MARKING SCHEME




               2006




              CLASS XII

         COMMERCE SUBJECTS




CENTRAL BOARD OF SECONDARY EDUCATION
               DELHI
CBSE, Delhi-110092




Sept., 2006 : 250 Copies




Price : Rs. 100




Manuscript as such highlights the main value points and does not represent a complete ideal
answer. Manuscript may vary from time to time and year to year.




Published by Shri Vineet Joshi, Secretary, C.B.S.E. 'Shiksha Kendra', 2, Community Centre,
Preet Vihar, Delhi - 110092. Laser typesetting and Printed by Akashdeep Printers, Daryaganj,
New Delhi-110002


                                            (iii)
                                          PREFACE
      CBSE as a pace setting national Board has constantly been striving to design its evaluation
process in a manner that it is used as a powerful means of influencing the quality of teaching
and learning in the classroom situation. Also, it has to be so designed that it provides constant
feedback regarding the effectiveness of the course content, classroom processes and the growth
of individual learners besides the appropriateness of evaluation procedures.

      As a move in this direction, CBSE started the practice of publishing the Marking Schemes
with twin objectives in mind-(i) making the system more transparent and at the same time, (ii)
ensuring high degree of reliability in scoring procedure.

       Who are the makers of answer scripts? How do they mark the answer scripts? How can
it be ensured that marking is fair, objective and reliable? Questions of these types naturally arise
in the minds of candidates appearing in the public examination. These questions are equally
pertinent to the teachers who are not adequately exposed to the CBSE system of marking.

      Answer Scripts marking is a specialised job. It is assigned to teachers-PGTs for Class XII
and TGTs for Class X who are in direct touch with the subject and have a minimum of 3 years
experience of teaching the subject at that level. Appointment of examiners is made in accordance
with the well-defined norms. Markers examine scripts with the help of datailed guidelines called
the 'Marking Schemes'.

      It is this tool (Marking Scheme) alongwith the extensive supervisory checks and counter-
checks through which CBSE tries to ensure objective and fair marking. The present publication
is being brought out with a view to serving the following objectives :

      (i) To give an opportunity to the teachers and students to look into the Marking Schemes
          that were developed by the Board and supplied to the evaluators in 2006 main
          examination in some selected main subjects.

      (ii) To receive feedback and suggestions from institutions/subject teachers on the utility
           and further improvement of Marking Schemes.

      (iii) To encourage institutions to undertake similar exercise of developing marking schemes
            for classes other than those covered by the Board's examination with a view to increasing
            teachers' responsiveness to them as the essential tools of evaluation.



                                                (iv)
HOW TO USE

     Teachers and the students preparing for Class XII examination of the Board constitute the
primary interest-group of this publication. Marking Schemes of Question Papers in the subjects
of English Core, Functional English, Mathematics, Economics, Business Studies, Accountancy
and Entrepreneurship administered in Delhi and Outside Delhi during the 2006 main examination
have been included in this document. Some tips on their usage are given below :

(a)   To Teachers :

       -
      --   Go through the syllabus and the weightage distribution for the subject carefully.

       -
      --   Read the question paper to find out how far the question paper set subscribes to the
           prescribed design. Grade every question by difficulty level for students who have
           taken the main Board examination.

       -
      --   Consult the 'Marking Scheme' for each question, with reference to steps into which
           answers and awards have been divided.

       -
      --   Work out concrete suggestions for the Board.

(b)   To Students :

       -
      --   Study each question carefully, comprehend them and write down the main points of
           the answer and note down their difficulties for clarification.

       -
      --   Examine a question in conjunction with the Marking Scheme and find out the proximity
           of the answer to that suggested in the Marking Scheme.

       -
      --   We will feel motivated if this publication is commented upon by practitioners in the
           context of its impact on their teaching learning strategies. Contribution of the experts
           and the officials of the Board in bringing out this document is gratefully acknowledged.

     We urge the teachers to encourage their students to make use of this publication and at the
same time to enrich us with their free and frank reactions.

                                                                      M.C. SHARMA
                                                          CONTROLLER OF EXAMINATIONS




                                                (v)
                                                     CONTENTS
                     Senior School Certificate Examination (XII)

                                                  Marking Scheme

                                                                                                                                 Page No.

1.   English Core .............................................................................................................      1-37

2.   Functional English ..................................................................................................... 38-77

3.   Mathematics .............................................................................................................     78-123

4.   Economics ................................................................................................................ 124-148

5.   Business Studies ....................................................................................................... 149-172

6.   Accountancy ............................................................................................................. 173-222

7.   Entrepreneurship ....................................................................................................... 223-237




                                                                 (vi)
      LIST OF COORDINATORS/SUBJECT EXPERTS/REPRESENTATIVES
         OF THE REGIONS FOR UPDATION/FINALISATION OF THE
          MARKING SCHEME FOR SENIOR SCHOOL CERTIFICATE
                        EXAMINATION, 2006


S.No. Name of the Coordinator/Subject        S.No. Name of the Coordinator/Subject
      Experts                                      Experts

ENGLISH CORE                                 7.    Sh. Lalit Mohan Pandey
                                                   Principal
1.    Mrs. Usha Ram
                                                   RPVV, Plot No. 1, Link Rd.
      Principal
                                                   Karol Bagh, New Delhi
      Laxman Public School
      Hauz Khas, New Delhi-110016            8.    Shri R.K. Sharma
                                                   Principal
2.    Sh. J.K. Gangal
                                                   S.J. Public School,
      H-196, Rama Krishna Vihar
                                                   Janta Colony, Jaipur
      Patparganj Society, Delhi-110092

3.    Ms. Lata Mathew                        9.    Smt. J. Dasbasu

      Principal                                    Principal

      Hamdard Public School                        Kendriya Vidyalaya

      Sangam Vihar, New Delhi                      Khanapara, Guwahati-781022

4.    Smt. Vandana Kapoor                    10.   Dr.(Mrs.) Nalini Ravindran
      Principal                                    Principal
      S.L.S. DAV Public School                     National Public School
      Mausam Vihar, Delhi                          Gopalapuram, Chennai-600086

5.    Mrs. Rachna Pant                       11.   Mrs. Ravi Raj Kaur
      Principal                                    PGT
      Summer Field School                          Govt. Model Sr. Sec. School,
      Kailash Colony,                              Sec. 35, Chandigarh
      New Delhi
                                             12.   Mrs. Neena Sehgal
6.    Smt. Kiran Khanna                            Principal
      Principal                                    Delhi Public School
      Vivekanand School                            Sec. 30, Noida
      D-Block, Anand Vihar, Delhi                  G.B. Nagar, U.P.-211303


                                         (vii)
S.No. Name of the Coordinator/Subject       S.No. Name of the Coordinator/Subject
      Experts                                     Experts

13.   D.N. Tiwari,                          MATHEMATICS
      Laxman Public School,                 1.    Mrs. Kusum Ahluwalia
      Hauz Khas,                                  Principal
      New Delhi-16
                                                  Hans Raj Public School
FUNCTIONAL ENGLISH                                Road No. 73, Punjabi Bagh
                                                  New Delhi
1.    Mrs. Annie Koshy
      Principal, St. Mary School            2.    Dr. V.P. Gupta
      B-II Block, Safdurjung Enclave,             Reader
      New Delhi                                   NCERT
                                                  New Delhi
2.    Sh. Peter P.J.
      PGT                                   3.    Sh. G.D. Dhall
      Laxman Public School                        K-171, LIC Colony
      Hauz Khas, N. Delhi-110016                  Syed Nangloi Village, Delhi

3.    Mrs. Bela Bhatteja                    4.    Sh. S.N. Chibber
      PGT                                         Principal (Rtd.)
      G.D. Goenka Public School,                  B-330, Saraswati Vihar, Delhi
      Sector-3, Pocket 8 & 9
                                            5.    Sh. V.P. Singh
      Vasant Kunj, New Delhi
                                                  Principal
4.    Mrs. Malini Khatri                          Govt. Boys Sr. Sec. School,
      Modern School,                              Kanti Nagar, Delhi
      Barakhamba Road,
                                            6.    Sh. J.C. Nijhawan
      New Delhi-110001
                                                  Vice Principal
5.    Mrs. Neena Kaul                             Govt. Sarvodaya Vidyalaya
      St. Mary School, B-II Block,                C Block, Saraswati Vihar,
      Safdarjung Enclave, New Delhi               Delhi

6.    Ms. Alka Lahiri                       7.    Dr. Y.K. Sharma
      St. Mary School                             Vice Principal
      B-II Block, Safdurjung Enclave,             Subodh Public School
      New Delhi                                   Rambagh Circle, Jaipur (Raj.)


                                        (viii)
S.No. Name of the Coordinator/Subject   S.No. Name of the Coordinator/Subject
      Experts                                 Experts

8.    Mr. C. Sathiamoorthy              2.    Sh. S.K. Aggarwala
      Principal                               Deptt. of Eco.
      Chinmaya Vidyalaya                      Rajdhani College, Delhi
      9-B, Taylore Road
                                        3.    Sh. S.N. Sharma
      Kilpauk Chennai-600010
                                              BC. 54,
9.    Sh. Dilbagh Singh                       Shalimar Bagh (West)
      Principal                               Delhi-110088
      Govt. Model Sr. Sec. School
                                        4.    Brdg K.S. Saghu
      Sector-22, Chandigarh.
                                              G-2 Opp. Furniture Block
10.   Dr. Ram Mohan                           Behind Petrol Pump
      Principal                               Kirti Nagar Extn.,
      St. Vivakanand Public School            New Delhi-18
      Alampur, Hauz Sarai Essar,
      Agra Road, Etawah,                5.    Mrs. Rekha Sharma
      U.P.-206001                             PGT
                                              Bhartiya Vidya Bhawan
11.   Sh. Nirmal Singh
                                              K.G. Marg, New Delhi
      Lecturer
      Govt. Model Sr. Sec. School,      6.    Smt. Mukta Mishra
      Sector-33, Chandigarh                   Principal
                                              Bosco Public School
12.   Mrs. Sandhya Arora
                                              Guru Harkishan Nagar
      230, Paragati Aptt.
                                              Near Paschim Vihar
      Paschim Vihar, Delhi
                                              New Delhi
13.   Mrs. Sujata Chopra
      PGT,                              7.    Sh. M.L. Goel
      Delhi Public School                     Principal,
      Rohini, Delhi                           DAV Centenary Public School,
                                              Vaishali Nagar,
ECONOMICS
                                              Jaipur
1.    Mrs. Sushma Khurana
      Principal                         8.    Mrs. A. Hazarika
      Leela wati Vidya Mandir                 Principal
      Sr. Sec. School                         Kendriya Vidyalaya
      Shakti Nagar, Delhi                     Narangi, Guwahati


                                     (ix)
S.No. Name of the Coordinator/Subject           S.No. Name of the Coordinator/Subject
      Experts                                         Experts

9.    Mrs. Devika Avtar                         6.    Dr. C.B. Gupta
      PGT                                             Shri Ram College of Commerce
      Kendriya Vidyalaya                              North Campus
      Sector-47, Chandigarh                           Delhi University, Delhi
10.   Mr. R. Raghunathan                        7.    Sh. L.R. Pathak
      PGT                                             B-3/383, Paschim Vihar
      Kendriya Vidyalaya                              Delhi
      APS, Avadi, Chennai
                                                8.    Ms. Vinita
11.   Mrs. Neelu Ahuja
                                                      PGT
      PGT
                                                      Kendriya Vidyalaya
      Lilawati Vidya Mandir
                                                      Sarasvati Vihar, Delhi
      Shakti Nagar, Delhi
                                                9.    Sh. B. Ram Chandran
BUSINESS STUDIES
                                                      Principal
1.    Mrs. Meena Goel
                                                      Kendriya Vidyalaya
      Principal
                                                      Phalpur IFFCO Township
      Nav Hind Girls Sr. Sec. School
                                                      P.O. Ghiyanagar
      New Rohtak Road, New Delhi-110005
                                                      Allahabad-212404
2.    Dr. R.N. Nigam
      MVJ College of Engg.                      10.   Sh. Manish Tanna
      Channasandra, Bangalore-67                      Principal
                                                      Choith Ram Public School
3.    Sh. S.L. Jain
                                                      Indore
      Principal
      Mahavir Sr. Model School                  11.   Mrs. Priyanka Sapra
      G.T. Karnal Road, Delhi                         PGT

4.    Smt. Rajni Rawal                                Chiranjiv Bharati School
      Govt. Girls Sr. Sec. School No. 1               Palam Vihar, Gurgaon-122001
      Punjabi Bagh, New Delhi                   12.   Mrs. Preeti Arya
5.    Smt. Seema B. Grover                            PGT
      Govt. Model Sr. Sec. School                     Nav Hind Girls Sr. Sec. School
      Sector-35                                       New Rohtak Road,
      Chandigarh                                      New Delhi-110005


                                          (x)
S.No. Name of the Coordinator/Subject         S.No. Name of the Coordinator/Subject
      Experts                                       Experts

ACCOUNTANCY                                   9.    Sh. Ragh Vendra Mathur
                                                    Vice Principal
1.    Mrs. Meena Goel
                                                    Mayoor School, Ajmer
      Principal
      Nav Hind Girls Sr. Sec. School          10.   Sh. Harish Kumar
      New Rohtak Road, New Delhi-110005             PGT
                                                    PMLSD public School
2.    Dr. S.C. Garg                                 Sector-32, Chandigarh
      Kirori Mal College                      11.   Mrs. Vinita
      University of Delhi, Delhi-110007             PGT
                                                    Govt. Girls Sr. Sec. School
3.    Sh. N.M. Bhatia
                                                    A-Block, Saraswati Vihar, Delhi
      Principal
      Chiranjiv Bharti School                 12.   Mrs. Jaya Khurana
      Palam Vihar, Distt. Gurgaon                   PGT
                                                    Modern School
4.    Sh. L.R. Pathak                               Barakhamba Road, Delhi
      B-3/383, Paschim Vihar, Delhi
                                              13.   Mrs. Preeti Arya
5.    Sh. Kuljeet Singh Vohra                       PGT
      Principal                                     Nav Hind Girls Sr. Sec. School
      Sarvodaya Vidyalaya                           New Delhi-110005
      Aliganj, Lodhi Road, New Delhi          ENTREPRENEURSHIP
6.    Miss Baneet Kaur                        1.    Mrs. Ranju Shrma
      PGT                                           PGT
      Salwan Public School                          Vidya Bharati School
      Rajender Nagar, New Delhi                     Block G, Sector 15, Rohini, Delhi-85

7.    Sh. A.K. Sharma                         2.    Mrs. Renu Kochar
      Principal                                     PGT
      DAV Model School                              Ram Krishan Kulwant Rai School
      JM Sengupta Road, Durgapur                    Lodhi Road, New Delhi
      Bardhaman, WB-713205
                                              3.    Dr. P. Prasad
8.    Dr. G. Neelakantan                            PGT
      Principal                                     Kendriya Vidyalaya No. 3
      Sir Sivaswami Kalalya Sr. Sec. School         Ring Road, Naraina
      Mylapore, Chennai                             Delhi Cantt., New Delhi


                                          (xi)
                                           ENGLISH (Core)

Time allowed : 3 hours                                                                Maximum Marks : 100

     General Instructions :

     (i)   The paper is divided into three sections : A, B and C. All the sections are compulsory.

     (ii) Separate instructions are given with each section and question, wherever necessary.
          Read these instructions very carefully and follow them faithfully.

     (iii) Do not exceed the prescribed word limit while answering the questions.


                                     QUESTION PAPER CODE 1/1/1
                                         SECTION A : READING

1.         Read the passage given below and answer the questions that follow :
           1.   Today, India looks like it is on course to join the league of developed nations.
                It is beginning to establish a reputation not just as the technology nerve centre
                and back-office to the world, but also as its production centre. India’s
                secularism and democracy serve as a role model to other developing countries.
                There is great pride in an India that easily integrates with a global economy,
                yet maintains a unique cultural identity.
           2.   But what is breathtaking is India’s youth. For despite being an ancient
                civilization that traces itself to the very dawn of human habitation, India is
                among the youngest countries in the world. More than half the country is
                under 25 years of age and more than a third is under 15 years of age.
           3.   Brought up in the shadow of the rise of India’s service industry boom, this
                group feels it can be at least as good if not better than anyone else in the
                world. This confidence has them demonstrating a great propensity to consume,
                throwing away ageing ideas of asceticism and thrift. Even those who do not
                have enough to consume today feel that they have the capability and
                opportunity to do so.
           4.   The economic activity created by this combination of a growing labour
                pool and rising consumption demand is enough to propel India to double-
                digit economic growth for decades. One just has to look at the impact that
                the baby boomers in the US had over decades of economic activity, as
                measured by equity and housing prices. This opportunity also represents
                the greatest threat to India’s future. If the youth of India are not properly
                educated and if there are not enough jobs created, India will have forever
                lost its opportunity. There are danger signs in abundance.


                                                         1
5.   Fifty-three per cent of students in primary schools drop out, one-third of
     children in Class V cannot read, three quarters of Schools do not have a
     functioning toilet, female literacy is only 45 per cent and 80 million children
     in the age group of 6-14 do not even attend school.
6.   India’s IT and BPO industries are engines of job creation, but they still
     account for only 0.2 per cent of India’s employment. The country has no
     choice but to dramatically industrialize and inflate its domestic economy.
     According to a forecast by the Boston Consulting Group, more than half
     of India’s unemployed within the next decade could be its educated youth.
     We cannot allow that to happen.
7.   India is stuck in a quagmire of labour laws that hinder employment growth,
     particularly in the manufacturing sector. Inflexible labour laws inhibit
     entrepreneurship, so it is quite ironic that laws ostensibly designed to
     protect labour actually discourage employment.
8.   Employment creation needs an abundant supply of capital. Controls on
     foreign investment have resulted in China getting five times the foreign direct
     investment, or an advantage of $200 billion over the past five years.
     The growing interest in India by global private equity firms augurs well
     as they represent pools of patient and smart capital, but they too face many
     bureaucratic hurdles.
9.   When it comes to domestic capital availability, budget deficits adding up
     to 10 per cent of the national GDP impede capital availability for investment
     and infrastructure.
10. Raising infrastructure spending,, coupled with rapid privatization, may not
    only create employment but also address the growing gaps in infrastructure.
    China has eight times the highway miles and has increased roads significantly
    in the past few years while India has only inched along. Freight costs at
    Indian ports are almost double the worldwide average, just to give two
    examples.
11. Moreover, like the Lilliputians that kept the giant Gulliver tied down,
    there are some 30,000 statutes in India, of which only a portion are even
    operational, and these keep the employment creation engine tied down.
    Since there are no sunset provisions in any laws, the regulatory morass
    only grows every year.
12. In the meantime, we as citizens of the world and descendants of India
    have to make a difference. We have to ensure that India and its youth
    attain that potential, both through our business pursuits and the support of


                                             2
          educational charities, on-the-ground proponents of participative democracy
          as well as other deserving organizations and initiatives.
     13. I believe that hope can triumph and that this can be India’s century - not
         one that will happen as surely as the sun will rise each day, but one that
         many willing hands will need to create together.
          (a) (i)      What makes the author think India is on the verge of joining
                       the select band of developed nations ?                                2
                (ii) Despite the fact that India is one of the oldest civilizations why
                      does the author say it is young ?                                      1
                (iii) The author feels that if certain problems are not arrested, India
                      would lose its opportunity. Why would India lose this opportunity ?    2
                (iv) What hinders employment growth ?                                        1
                (v) Who/what in the passage is referred to as the ‘Lilliputians’ ?           1
                (vi) How can we ensure that India and its youth attain their full
                     potential?                                                              2
          (b) Pick out words from the passage that mean :                                    3
                (i)    extremely exciting (para 2)
                (ii)   a period of sudden growth (para 3)
                (iii) another name for wealth (para 8)

2.   Read the passage given below :
     Torrential rains and swollen rivers have caused chaos across central and eastern
     Europe, while a massive heat wave in southern Europe has helped reduce the
     Portuguese woodland to tinder. Tens of thousands of people face a massive relief
     operation as the extent of the devastation slowly becomes clear. The death toll
     continues to mount steadily across the continent. The latest estimate puts the number
     since mid August, 2005 at over 150. “Unfortunately, we are expecting the number
     of victims to rise by the hour,” said Romanian interior minister Vasile Blaga.
     Though the heat wave persists in Portugal and Spain, forest fires in Portugal have
     been brought under control. By August 26, 2005, the waters began to recede
     across Germany and the Czech Republic, the countries hardest hit by the floods.
     The situation also improved in Croatia, Austria, Bulgaria, Poland, Hungary and
     Slovenia. But some areas of Switzerland and Germany remained on alert.
     Huge damages were reported from all over Europe. Thousands of people had to
     be evacuated from their homes. Many villages were abandoned in Portugal, while


                                                  3
helicopters were used in Switzerland and Austria to airlift people from flooded
houses and landslides. The floods' worst impact was along the Danube, Morava
and Elbe rivers and their tributaries. Dresden in Germany was one of the hardest
hit.
Germany puts the damages at around US $14 billion, but the German state of
Saxony alone puts its own costs at around US $16 billion. Austria quotes a clean
up bill of US $2 billion, and the Czech Republic US $3 billion. But all these figures
are speculative. What is disturbing is that relief operations appear stretched. In
Germany, only US $200 per adult is currently available from both the EU and the
government.
The reason behind the bedlam is the jet stream, high-speed winds usually found
just below the tropopause, which drives the depressions and fronts that affect the
weather. Usually found between 7,620 metres (m) and 13,716(m) altitude, it flows
eastwards at speeds up to 200 m per hour around the Earth. It is formed when
cold air from the Arctic meets warm air from the tropics. Because the jet stream
fluctuates, its track makes huge differences to the weather. This year it positioned
around Europe locking high pressure over southwest Europe which in its turn is
responsible for creating intense drought in some parts and deluges of rain in other
parts.
While many blame global warming for the disaster, some scientists are reluctant to
draw a direct link. “We are linking these events to climate change... There are also
other things happening: building up of the land, bad land use plans, bad fire
prevention in the south... But all the factors together are more and more exacerbated
by global warming,” explains Martin Hiller, spokesperson for Worldwide Fund
for Nature. Malcolm Haylock of the University of East Anglia, the UK, is more
dithering: “You can say that due to the Earth getting warmer, there will be on an
average more extreme events, but you can’t attribute any specific event to climate
change.”
Despite growing consensus about global warming, it is hard to find long-term
trends in rainfall that would have directly influenced the droughts, and floods Some
experts believe the North Atlantic Oscillation climate system has caused a drift
towards drier conditions in southern Europe and more rainfall in the north during
winters; its effects during summers are not as clear.
(a) On the basis of your reading of the above passage make notes on it using
    headings and sub-headings. Use recognizable abbreviations wherever
    necessary.                                                                          5
(b) Write a summary of the above passage in 80 words using the notes made
    and also suggest a suitable title.                                                  3


                                             4
              SECTION B : ADVANCED WRITING SKILLS

3.   Water is precious and each one of us must stop wastage. Prepare a poster in not
     more man 50 words urging people to employ various methods of rain water
     harvesting in their colonies.                                                          5
                                           OR
     Your school is organizing a fete to collect funds for charity. Only school students
     are eligible to put up stalls. As Head boy/Head girl of the Meera International
     School, draft a notice in not more than 50 words to be put up announcing sale of
     stalls giving all other necessary details.
4.   To promote healthy eating habits amongst School children, Vaibav Public School,
     Hastinapur, recently organized a 'Nutritious Food and Snacks Competition'. The
     competition was open to both parents and students. The participation was very
     encouraging. The famous nutrition expert, Dr. Shikha Sharma was the chief guest.
     As Archana/Anjum, the local student reporter for the Young India newspaper,
     write a report about this event in 100-125 words. Do not forget to give your
     report a catchy heading.                                                              10
                                           OR
     Recently you attended a Career Fair organized by the Australian High Commission
     in which various Australian colleges and Universities participated and gave
     information about their undergraduate and graduate programmes. You attended
     this fair. Write a detailed account of the fair in 100-125 words. You are Reshma/
     Hamid.
5.   You are Shilpa/Sameer living in Bangalore. You have just completed your studies
     and are looking for a job. While browsing through the Hindustan Times of
     26.01.2006, you come across the following advertisement. Choose a post for
     which you think you are suitable. Send your application in response to this
     advertisement.                                                                        10

     An upcoming food processing unit in Galogaon requires the following staff:
     Food technologist: 2 yrs degree/diploma in food technology having 1-2 yrs
     lab experience.
     Accountant: B. Com. with minimum experience of 4-5 years in a
     manufacturing concern and conversant with sales tax taws.
     Receptionist: Young female candidates fluent in English with good
     communication skills and proficiency in computer/Net surfing with 2-3 years
     experience.
     Please send your detailed resume within seven days to Manager, Fancy Foods,
     Sector 68. Golagaon.


                                                 5
                                         OR
     In its bid to educate people about the harmful effects of cigarette smoking, the
     Govt. of India has been taking serious steps to prevent it. A few years ago it
     ordered all cigarette manufacturing units to insert a statutory warning on cigarette
     packs. Now it is considering censorship of all cigarette smoking scenes in Indian
     cinema. Write a letter to the editor of a national daily giving your own views.
6.   Last year’s floods in Mumbai not only highlighted the inefficiency and indifference
     of the local administration but also brought out the indomitable spirit of the
     common man. It was a grand story of how people came to the rescue of people.
     Write an article in 150-200 words on how common man can realize his own
     powers and help rebuild a “New and Clean India” of which we can all be proud.
     Sign yourself as Victor/Hellen.                                                        10
                                         OR
     You are Maneka/Manik. You strongly feel that the Indian Government is not taking
     adequate steps to promote tourism in India which could turn out to be one
     of the major revenue earning industries. Write an article in 150-200 words for a
     magazine giving your ideas on the steps the Indian Govt. could take to promote
     tourism aggressively.

                          SECTION C : LITERATURE
7.   (a) Read the extract given below and answer the questions that follow:
            Although it fall and die that night-
            It was the plant and flower of Light.
            In small proportions we just beauties see:
            And in short measures life may perfect be.
     (i)    What does the word ‘it’ refer to ? Why does it die that night ?                 2
     (ii)   What is the significance of the word “although’’ in the above lines ?            1
     (iii) What message does the poem have for mankind through the above lines ?            1
                                         OR
            Freedom from the insult of dwelling in a puppet’s world,
            where movements are started through brainless wires,
            repeated through mindless habits,
            where figures wait with patience and obedience for the
            master of the show,
            to be stirred into a moment's mimicry of life.


                                                   6
      (i)    What, according to the poet, is the ‘puppet’s world’ ?                                1
      (ii)   What to his mind is insulting ?                                                       1
      (iii) Which two expressions indicate that this is a puppet’s world ?                         2

      (b) Answer the following questions in 30-40 words each :                                3×2=6
             (i)    Sometimes circumstances compel a man to do something against his
                    wishes. Bring out the truth of this statement by referring to the poem,
                    ‘The Man He Killed’.
             (ii)   What, according to William Wordsworth, is.nature’s ‘holy plan’ ? How
                    has mankind shown its indifference towards it ?
             (iii) The poem, “Once Upon Time” is a lament for a bygone era. Illustrate
                   the truth of this statement with examples from the poem.

8.    Answer the following questions in 30-40 words each :                                    5×2=10
      (a) Who was Bunbury ? Why was he so important to Algernon ?
      (b) Bhai Parmanand says “... I for one, began to think that we had been forcibly
          pulled down from the steps leading to Heaven and made ready to enter the
          gates of Hell.” Which, according to you, could be the steps to Heaven and
          gates of Hell ? Why does he say so ?
      (c) What does Max Mueller mean by ‘two very different’ Indias ?
      (d) Why does the author call the Gandhian movement for enlistment of women
          epochal and revolutionary ?
      (e) Coming out of his office Parsons was glad to be alive. Why does he think
          so ?

9.    Answer the following in 125-150 words :                                                     10

      Justify the title of the story, ‘The Price of Flowers’.

                                           OR

      Machines confer power and, therefore, they bring happiness. Taking cue from the
      lesson, ‘Machines and the Emotions’, give arguments in support of and against the
      statement.

10.   Answer the following in 125-150 words :
      How did the narrator of the story, ‘The Face on the Wall”, prove himself to be a
      master story teller ? How was the group gulled ?                                             7


                                                     7
                                              OR

          In his talk at the conference for parents of blind students, Dr. Stromer makes
          some very crucial points to make them understand that even handicapped people
          can live normal and happy lives. What arguments and examples does he give to
          support his belief ?

11.       Answer the following in 30-40 words each :                                               4×2=8
          (i)    Why was Baldwin surprised when Marshall offered him a position in the
                 Third National ?
          (ii)   Mrs. Wang knew that a war was going on between the Chinese and the
                 Japanese but to her it was not real. Why ?
          (iii) Why does Gandhi feel that he could not do full justice to all the young boys
                and girls at the farm ?
          (iv) In order to be effective vanguards of the nation what attributes, according to
               Dr. Karan Singh, should the young men and women of India be equipped
               with ?

                                     QUESTION PAPER CODE 1/1
                                         SECTION A : READING

1.        Read the passage given below and answer the questions that follow :

      1   Today, India looks like it is on course to join the league of developed nations. It is
          beginning to establish a reputation not just as the technology nerve centre and
          back-office to the world, but also as its production centre. India’s secularism and
          democracy serve as a role model to other developing countries. There is great
          pride in an India that easily integrates with a global economy, yet maintains a
          unique cultural identity.

      2   But what is breathtaking is India’s youth. For despite being an ancient civilization
          that traces itself to the very dawn of human habitation, India is among the youngest
          countries in the world. More than half the country is under 25 years of age and
          more than a third is under 15 years of age.

      3   Brought up in the shadow of the rise of India’s service industry boom, this group
          feels it can be at least as good, if not better, than anyone else in the world. This
          confidence has them demonstrating a great propensity to consume, throwing away
          ageing ideas of asceticism and thrift. Even those who do not have enough to consume
          today feel that they have the capability and opportunity to do so.



                                                        8
4   The economic activity created by this combination of a growing labour pool and
    rising consumption demand is enough to propel India to double-digit economic
    growth for decades. One just has to look at the impact that the baby boomers in
    the US had over decades of economic activity, as measured by equity and housing
    prices. This opportunity also represents the greatest threat to India’s future. If the
    youth of India are not properly educated and if there are not enough jobs created,
    India will have forever lost its opportunity. There are danger signs in abundance.

5   Fifty-three per cent of students in primary schools drop out, one-third of children
    in Class V cannot read; three quarters of schools do not have a functioning toilet,
    female literacy is only 45 per cent and 80 million children in the age group of 6 - 14
    do not even attend school.

6   India’s IT and BPO industries are engines of job creation, but they still account for
    only 0.2 per cent of India’s employment. The country has no choice but to
    dramatically industrialize and inflate its domestic economy. According to a forecast
    by the Boston Consulting Group, more than half of India’s unemployed within the
    next decade could be its educated youth. We cannot allow that to happen.

7   India is stuck in a quagmire of labour laws that hinder employment growth,
    particularly in the manufacturing sector. Inflexible labour laws inhibit
    entrepreneurship, so it is quite ironic that laws ostensibly designed to protect labour
    actually discourage employment.

8   Employment creation needs an abundant supply of capital. Controls on foreign
    investment have resulted in China getting five times the foreign direct investment,
    or an advantage of $200 billion over the past five years. The growing interest in
    India by global private equity firms augurs well as they represent pools of patient
    and smart capital, but they too face many bureaucratic hurdles.

9   When it comes to domestic capital availability, budget deficits adding up to 10 per
    cent of the national GDP impede capital availability for investment and infrastructure.

10 Raising infrastructure spending, coupled with rapid privatization, may not only
   create employment but also address the growing gaps in infrastructure. China has
   eight times the highway miles and has increased roads significantly in the past few
   years while India has only inched along. Freight costs at Indian ports are almost
   double the worldwide average, just to give two examples.

11 Moreover, like the Lilliputians that kept the giant Gulliver tied down, there are
   some 30,000 statutes in India, of which only a portion are even operational, and
   these keep the employment creation engine tied down. Since there are no sunset
   provisions in any laws, the regulatory morass only grows every year.


                                                   9
     12 In the meantime, we as citizens of the world and descendants of India have to
        make a difference. We have to ensure that India and its youth attain that potential,
        both through our business pursuits and the support of educational charities, on-
        the-ground proponents of participative democracy as well as other deserving
        organizations and initiatives.
     13 I believe that hope can triumph and that this can be India’s century — not one that
        will happen as surely as the sun will rise each day, but one that many willing hands
        will need to create together.
         (a) (i)     What makes the author think India is on the verge of joining the select
                     band of developed nations ?                                                   2
              (ii)   Despite the fact that India is one of the oldest civilizations why does the
                     author say it is young ?                                                      1
              (iii) The author feels that if certain problems are not arrested, India would
                     lose its opportunity. Why would India lose this opportunity ?                 2
              (iv) What hinders employment growth ?                                                1
              (v) Who/what in the passage is referred to as the ‘Lilliputians’ ?                   1
              (vi) How can we ensure that India and its youth attain their full potential ?        2

         (b) Pick out words from the passage that mean :                                           3
              (i)    extremely exciting (para 2)
              (ii)   a period of sudden growth (para 3)
              (iii) another name for wealth (para 8)

2.       Read the passage given below and answer the questions that follow :

         Torrential rains and swollen rivers have caused chaos across central and eastern
         Europe, while a massive heat wave in southern Europe has helped reduce the
         Portuguese woodland to tinder. Tens of thousands of people face a massive relief
         operation as the extent of the devastation slowly becomes clear. The death toll
         continues to mount steadily across the continent. The latest estimate puts the number
         since mid August, 2005 at over 150. “Unfortunately, we are expecting the number
         of victims to rise by the hour,” said Romanian interior minister Vasile Blaga.

         Though the heat wave persists in Portugal and Spain, forest fires in Portugal have
         been brought under control. By August 26, 2005, the waters began to recede
         across Germany and the Czech Republic, the countries hardest hit by the floods.
         The situation also improved in Croatia, Austria, Bulgaria, Poland, Hungary and
         Slovenia. But some areas of Switzerland and Germany remained on alert.


                                                       10
Huge damages were reported from all over Europe. Thousands of people had to
be evacuated from their homes. Many villages were abandoned in Portugal, while
helicopters were used in Switzerland and Austria to airlift people from flooded
houses and landslides. The floods’ worst impact was along the Danube, Morava
and Elbe rivers and their tributaries. Dresden in Germany was one of the hardest
hit.
Germany puts the damages at around US $14 billion, but the German state of
Saxony alone puts its own costs at around US $16 billion. Austria quotes a clean
up bill of US $2 billion, and the Czech Republic US $3 billion. But all these figures
are speculative. What is disturbing is that relief operations appear stretched. In
Germany, only US $200 per adult is currently available from both the EU and the
government.
The reason behind the bedlam is the jet stream, high-speed winds usually found
just below the tropopause, which drives the depressions and fronts that affect the
weather. Usually found between 7,620 metres (m) and 13,716 metres (m) altitude,
it flows eastwards at speeds up to 200 m per hour around the Earth. It is formed
when cold air from the Arctic meets warm air from the tropics. Because the jet
stream fluctuates, its track makes huge differences to the weather. This year it
positioned around Europe locking high pressure over southwest Europe which in
its turn is responsible for creating intense drought in some parts and deluges of rain
in other parts.
While many blame global warming for the disaster, some scientists are reluctant to
draw a direct link. “We are linking these events to climate change... There are also
other things happening : building up of the land, bad land use plans, bad fire
prevention in the south... But all the factors together are more and more exacerbated
by global warming,” explains Martin Hiller, spokesperson for Worldwide Fund
for Nature. Malcolm Haylock of the University of East Anglia, the UK, is more
dithering : “You can say that due to the Earth getting warmer, there will be on an
average more extreme events, but you can’t attribute any specific event to climate
change.”
Despite growing consensus about global warming, it is hard to find long-term
trends in rainfall that would have directly influenced the droughts and floods. Some
experts believe the North Atlantic Oscillation climate system has caused a drift
towards drier conditions in southern Europe and more rainfall in the north during
winters; its effects during summers are not as clear.
(a) On the basis of your reading of the above passage make notes on it using
    headings and sub-headings. Use recognizable abbreviations, wherever
    necessary.                                                                           5
(b) Write a summary of the above passage in 80 words using the notes made
    and also suggest a suitable title.                                                   3


                                             11
                       SECTION B : ADVANCED WRITING SKILLS
3.   You plan to sell your old car. Draft a suitable advertisement in not more than 50
     words to be inserted in a reputed national daily giving all necessary details of the
     car.                                                                                   5
                                        OR
     Repeated earthquakes in India and elsewhere have resulted in unprecedented
     damage and destruction to both life and property. Educating people on the
     precautions to be taken is the need of the hour. Prepare a poster, in not more than
     50 words, for creating this awareness.
4.   You are Seetha / Surya living in Bangalore. You and your friends are planning a
     week long holiday. You come across the following advertisement. Select a
     destination of your choice. Write a letter making necessary enquiries from the tour
     operator before you make your final decision.                                          10
               This winter fill your holidays with endless masti and thrill
          We offer exciting domestic and international holiday packages for
          individuals as well as groups.
          You decide and leave the rest to us.
          1.     Exotic Malaysia with Singapore and Star Cruise
                 10 nights/11 days
                 Rs. 54,000/-
          2.     Magical Singapore
                 5 nights/6 days
                 Rs. 14,999/-
          3.     Bangkok, Pattaya + Kul + Genting + Singapore
                 11 days
                 Rs. 32,999/-
          4.     Australia (Sydney, Coral Islands and CNS)
                 7 nights /8 days
                 Rs. 67,000/-
          5.     Best of Nepal
                 5 nights in a 5 star Hotel
                 Rs. 7,999/-
          6.     Exotic Goa
                 3 nights /4 days
                 Rs. 3,333/-
                 For more details write to us or visit our website
                 www.sewanathholidays.com
                 Or write to us at :
                 Sewa Nath Worldwide Holidays, 123-A, Kailash Building,
                 Goverdhan Road, City Centre,
                 Malegaon.


                                                 12
                                         OR
     A leading news channel recently gave a live coverage of some young slum dwellers
     being beaten up mercilessly by the police for crimes not committed by them. Such
     atrocities shake the very faith of people. Write a letter to the Commissioner of
     Police urging him to adopt effective measures to curb such brutality against innocent
     people. You are Nita/Nitesh, a resident of Guwahati.

5.   There were many vacant spaces in your colony which were lying unattended and
     uncared for. You and your friends decided to beautify and develop those areas
     into green parks or playgrounds for the benefit of all. With practically no money
     but lots of enthusiasm of the children of the colony, your project became a roaring
     success. It has now even caught media attention. You have been approached by a
     local newspaper to share your success story. Write a brief report in 100 - 125
     words on how you organized the entire project. You are Neha / Nitin, a resident of
     Chandigarh.                                                                              10
                                         OR
     In order to promote book reading habit amongst school children, your school
     organized a ‘Book Week’. During this week a number of exciting activities including
     interaction sessions with eminent authors took place. As Head Boy / Head Girl of
     the school you were actively involved in making all the arrangements. Write a
     report in 100 - 125 words. You are Manju / Mihir, a resident of Chennai.

6.   Indian TV is doing a great service to the general public. Write an article giving your
     views on the above topic in 150-200 words for a leading magazine. You are Arth/
     Arti, a citizen of Patna.                                                                10
                                         OR
     A recent survey showed that there are still many communities in India which do
     not welcome the birth of a girl child. Can a country which does not give equal
     rights to all its citizens ever dream of becoming great ? Write an article in 150 -
     200 words giving your views on the above subject and the steps we should take
     to solve this problem. You are Simran / Yusuf, a citizen of Hyderabad.

                          SECTION C : LITERATURE

7.   (a) Read the extract given below and answer the questions that follow :                   4
                 “Had he and I but met
                 By some old ancient inn,
                 We should have sat us down to wet
                 Right many a nipperkin !”



                                                  13
           (i)   Who are the two characters in the above lines referred to as ‘he’
                 and ‘I’ ?                                                                       1
           (ii) What is the significance of the line, ‘Had he and I but met ...’ ?               2
           (iii) What does ‘a nipperkin’ mean ?                                                  1
                                        OR
                 One day there fell in great Benares’ temple-court
                 A wondrous plate of gold, whereon these words were writ;
                 “To him who loveth best, a gift from Heaven.”
           (i) Where did the plate of gold fall ?                                                1
           (ii) What was written on it ?                                                         1
           (iii) What message does the poet give through this poem ?                             2

     (b) Answer the following questions in 30 - 40 words each :                             3×2=6
          (i)    What, according to Tagore, has ‘the burden of ages’ done to our
                 motherland ?
          (ii)   Why does Ben Jonson call the lily a flower of light ?
          (iii) Wordsworth’s heart was filled with wonder and sadness at the same
                time when he was reclining under a tree. What made him think so ?

8.   Answer the following questions in 30-40 words each :                                   5×2=10
     (a) As she was going out she asked the cashier in a low voice, “Is that gentleman
         an Indian ?” Why did Maggie ask this question ?
     (b) How do machines deprive us of two important ingredients of happiness ?
     (c) The Brahmo Samaj movement for emancipation of women has been described
         as a false dawn. Why ?
     (d) What is Mueller’s view about the study of Sanskrit ?
     (e) What objection did Lady Bracknell have in giving her consent to Gwendolen’s
         wedding with Mr. Worthing ?

9.   Answer the following in 125 - 150 words :                                                  10
     A confinement in Andaman Islands was worse than a death sentence. Explain.
                                        OR
     There is light at the end of the tunnel but only for those who see it. Bring out the
     relevance of this statement by taking examples from the story, ‘A Man Who Had
     No Eyes’.


                                                 14
10.   Answer the following in 125 - 150 words :                                                    7
      The writer says that truth is vastly stranger than fiction. Do you agree ? Explain
      with reference to the story, ‘The Face on the Wall’.
                                           OR
      Mrs. Wang wins our sympathy and admiration through her wisdom and simplicity.
      Explain the truth of this statement with examples from the story, ‘The Old Demon’.

11.   Answer the following in 30 - 40 words each :                                             4×2=8
      (i)    “Each one of us misses out on some success or happiness”, says Dr. Stromer.
             What is the point he wants to make ?
      (ii)   At one point in the play, Baldwin says, ‘...never thought this day would come’.
             What is he referring to ?
      (iii) The winner of the bet eventually did not collect his bet money. Why ?
      (iv) When the glass kept near the wall of the compartment was vibrating, Barin
           became almost paralyzed with fear. Why ?




                                                    15
                        Marking Scheme—English Core

General Instructions :
1.   Answer scripts should not be given to the evaluators for evaluation until and unless the
     given Marking Scheme has been thoroughly discussed with them in group or individually
     on the first day of their starting evaluation.
2.   The Head-Examiners have to go through the first five answer-scripts evaluated by each
     evaluator to ensure that the evaluation has been carried out as per the Marking Scheme
     only. The remaining answer scripts meant for evaluation shall be given only after ensuring
     that there is no significant variation in the marking of individual evaluators.
3.   Evaluation is to be done as per instructions provided in the Marking Scheme. It should
     not be done according to one’s own interpretation or any other consideration - Marking
     Scheme is the only guideline.
4.   The Marking Scheme carries only suggested value points for the answers. These are only
     guidelines and do not constitute the complete answer.
5.   If a question has parts, please award marks on the right hand side for each part. Marks
     awarded for different parts of the question should then be totalled up and written out in
     the left hand margin and circled.
6.   If a question does not have any parts, marks must be awarded on the left-hand margin.
7.   Where marks are allotted separately for content and expression as per the Marking
     Scheme, they have to be reflected separately and then totalled. This is a mandatory
     requirement.
8.   A slash (/) in the marking scheme indicates alternative answers. If a student writes an
     answer which is not given in the Marking Scheme but which is equally acceptable, marks
     should be awarded only in consultation with the Head-Examiner.
9.   If a child has attempted an extra question, answer of the question deserving more marks
     should be retained and the other answer scored out.
10. Q1 under Section A (Reading skills) and Q7 (a) under Section C (Literature) questions
    have been designed to test a student’s understanding and his ability to interpret, evaluate
    and respond to the given passage. In other words only the reading and comprehension
    abilities are to be tested. As such, content assumes more importance than expression in
    the answers to these questions. Therefore students should not be unduly penalised for
    poor expression and faulty spelling, as long as the answer clearly reveals understanding
    of the passage on the part of the examinee.



                                             16
11. However, where questions have been designed to test the writing skills of students,
    expression (grammatical accuracy, appropriate vocabulary and style, spellings, organization
    and presentation of relevant matter in a coherent and logical way) is important.
12. Wherever the word limit is given, no deduction of marks is to be made if the word limit
    has been exceeded upto 25%. However, beyond this permitted limit, marks are to be
    deducted as follows:

     Penalty for exceeding the word limit

     For a 50 word answer:
     Above 60 - deduct ½ mark

     For a 100 word answer:
     125 to 150 words - deduct ½ mark
     Above 150 words - deduct 1 mark

     For a 125 word answer:
     150 to 175 words - deduct ½ mark
     Above 175 words - deduct 1 mark

     For a 150 word answer:
     175 to 200 words - deduct ½ mark
     Above 200 words - deduct 1 mark

     For 200 word answers:
     225 to 250 words - deduct ½ mark
     Above 250 words - deduct 1 mark

     However, no marks should be deducted in respect of short answer type questions (under
     Q7, 8 & 11) if the answer does not exceed 60 words. In case it exceeds 60 words,
     ½ mark may be deducted.

13. If a student, in response to a short-answer-type question, writes a single word answer
    which constitutes the core of the answer, it may be accepted and awarded full marks.

14. If a student literally lifts a portion of the given passage as an answer to a question, no
    mark(s) to be deducted for this so long as it is relevant and indicative of the desired
    understanding on the part of the student, especially in questions under Q1 and Q7.

15. A full scale of marks - 0 to 100 - has to be used. Please do not hesitate to award
    full marks, if the answer deserves it.




                                             17
                                QUESTION PAPER CODE 1/1/1
                          EXPECTED ANSWERS/VALUE POINTS
                                    SECTION A : READING

1.    COMPREHENSION PASSAGE
(a)   NOTE: No marks should be deducted for mistakes of grammar, spellings, or
      word limit. Full marks may be awarded if the student has been able to identify
      core ideas.
      (i)    –   reputed as the technology nerve centre
             –   back office to world
             –   production centre                       (any two)
             –   unique cultural identity / secularism / democracy / role model
                      (if only the second part has been done 1 mark)                       1+1=2 marks
      (ii)   –   more than half the country below 25 years of age / more than one
                 third under 15 yrs of age / majority of population young                       1 mark
      (iii) –    if the youth are not properly educated
            –    if enough jobs are not created                                            1+1 = 2 mark
      (iv) –     high drop out percentage rate
           –     80 million children in the age group 6-14 do not attend school
           –     slow industrialization
           –     slack domestic economy
           –     intricate / inflexible labour laws
           –     lack of capital
           –     control on foreign investment
           –     bureaucratic hurdles / red-tapism
                                            (any one)                                           1 mark
      (v) –      the 30,000 outdated statutes / restrictive laws / too many laws                1 mark
      (vi) ensure each child is educated / raise infrastructure spending coupled with
           rapid privatization / relax labour laws / create employment opportunities for
           the educated youth / understand the aspirations and urgency of its youth /
           participate in democracy / take advantage of economic reforms / awaken to
           the fact that they can wield immense political power / business pursuits /
           educational charities / inviting more foreign direct investments
                                           (any two)                                            2 marks

(b)   (i) breathtaking                                                                          1 mark
      (ii) boom                                                                                 1 mark
      (iii) capital                                                                             1 mark


                                                 18
2.   Note:
          If the student has attempted only summary or notes, due credit should
          be given.
          1 mark for title be given if the student has written the title in Q2(a) or
          Q2(b) part
          Min. 3 main headings and 3 sub headings for content
     The notes provided below are only guidelines. Any other title, main points and
     sub-points should be accepted if they are indicative of the student’s understanding
     of the given passage and the notes include the main points, with suitable and
     recognizable abbreviations. Complete sentences should not be accepted as notes.
     If a candidate writes complete sentences, deduct ½ mark from the total.
     Numbering of points can be indicated in different ways and these should be accepted
     as long as a consistent pattern is followed.
     (a) NOTE MAKING
         Distribution of Marks
         Abbreviations / Symbols (with /without key) — any four                             1 mark
         Title                                                                              1 mark
         Content (minimum 3 sub headings with proper indentation and notes)                3 marks
          Suggested Notes
          Title: Vagaries of Weather / Nature’s Fury / Global Warming / Climate
                 Change / any other suitable title
          1.    Massive heat wave, chaos across Cen. East. Europe
                1.1 1000s. face massive relief oprn.
                1.2 death toll mounting
                1.3 forest fire under control in Portugal
                1.4 situn. imprvd. in some countries
          2.    Damages
                2.1 1000s. evacuated
                2.2 many villages abandnd.
                2.3 flooded houses & landslides
                2.4 Germany worst hit
          3.    Reasons behind the bedlam
                3.1 jet stream, high speed winds
                3.2 global warming
                3.3 other factors also present
                3.4 climatic changes due to N A O


                                                 19
     (b) Summary
          The summary should include all the important points given in the notes.
          Content:                                                                  2 marks
          Expression                                                                1 mark

                        SECTION B : (ADVANCED WRITING SKILLS)
3.   NB : The answer to Q3 – Poster and Notice may be accepted with or without a
     box. However in Poster credit should be given for creativity.
     POSTER
     Content                                                                        3 marks
     Expression                                                                     2 marks
     Suggested Value Points
     –    water is precious
     –    save water
     –    harvest rain water
     –    improve water table
     –    do not wash cars / homes (use mops instead)
     –    any other relevant slogan or value point

                                      OR
     NOTICE (SALE OF STALLS)
     Format                                                                          1 mark
     The format should include: NOTICE / TITLE, DATE, and WRITER’S NAME
     WITH DESIGNATION. The candidate should not be penalized if he has used
     capital letters for writing a notice within or without a box.
     Content                                                                        2 marks
     Expression                                                                     2 marks
     Suggested value points:
     –   only school students eligible to put up stalls
     –   eligibility classes 9-12
     –   only food and games stalls
     –   on first come first serve basis
     –   sale proceeds for charity
     –   last date for applying
     –   whom to contact


                                               20
4.   REPORT WRITING
     Format                                                                              1 mark
     Title and reporter’s name,(date and place - optional)
     Content                                                                            4 marks
     Expression                                                                         5 marks
           Grammatical accuracy, appropriate words and spellings [2½]
           Coherence and relevance of ideas and style            [2½]
     (NUTRITIOUS FOOD AND SNACKS COMPETITION/ any other relevant
     heading)
     Suggested Value Points
     –   what, when, where the programme was organised
     –   dignitaries / guests present
     –   highlights of the programme
     –   response and success of the programme
     –   prizes / awards given
     –   any other relevant details
                                      OR
     (CAREER FAIR)
     Suggested Value Points
     –   what, when, where, by whom was the event organized
     –   highlights of the programme
     –   response of participants and visiotors
     –   any other relevant details
5.   LETTER WRITING
     [Note: - No marks are to be awarded if only the format is given. Credit should
     be given to the candidate’s creativity in presentation of ideas. Use of both the
     traditional and the new format is permitted. However, mixing up of the two is
     NOT acceptable.In the job application the bio-data may be written separately
     or within the letter. ]
     Format                                                                             2 marks
     (1. sender’s address, 2. date, 3. receiver’s address, 4. subject heading,
     5. salutation, 6. complimentary close.)
     Content                                                                            4 marks
     Expression                                                                         4 marks
         Grammatical accuracy, appropriate words and spellings [2]
         Coherence and relevance of ideas and style            [2]



                                               21
     Suggested value points:
     (APPLICATION FOR JOB)
     –   post applied for
     –   qualifications: Academic, Professional
     –   experience / positions held
     –   references
     –   salary expected (optional)
     –   contact address & telephone number
                                      OR
     Suggested value points:
     (LETTER TO EDITOR - HARMFUL EFFECTS OF CIGARETTE
         SMOKING)
     –   statutory warning on cigarette packs
     –   censorship of all cigarette smoking scenes in Indian cinema
     –   harmful effects
               –    cancer, T.B., Asthma, respiratory & other health problems
               –    harm to passive smokers
               –    wastage of money, health
               –    bad habit, wrong lesson to others
     –   recent steps taken by Finance Minister - increasing the price of tobacco
         products
     –   any other relevant point

6.   ARTICLE
     Format (Title and writer’s name)                                               1 mark
     Content                                                                        4 marks
     Expression                                                                     5 marks
         Grammatical accuracy, appropriate words and spellings [2½]
         Coherence and relevance of ideas and style            [2½]
     Suggested Value Points
     (FLOODS IN MUMBAI)
     –   inefficiency and indifference of the local administration
     –   role of common man in reaching out to the distressed
     –   indomitable spirit of the common man
     –   how common man can realize his own powers and help rebuild a “new and
         clean India”
     –   any other relevant details


                                              22
                                           OR
     Suggested Value Points
     (PROMOTING TOURISM)
     –   present situation
     –   government’s apathy (indifference)
     –   steps the government could take to promote tourism
     –   providing – better transport, telecommunications, infrastructure, hotels,
         airports, railway stations etc.
     –   any other relevant details
                                   SECTION C : LITERATURE
7.   [This question has been designed to test the students’ understanding of the
     text and their ability to interpret, evaluate and respond to the questions based on
     the given stanza. In other words it attempts to test their reading comprehension
     ONLY.]
     Value points:
     (a)   (i). – the lily flower / lily                                                      1 mark
                – has a short life                                                            1 mark
           (ii)   shows the contrast : the lily lives only for a day but spreads its beauty
                  and happiness all around                                                    1 mark
           (iii) a short but meaningful life is preferable to a long but useless life / we
                 must spread happiness with our deeds and words / life is to be measured
                 in terms of achievements and not by the number of years a person lives       1 mark
                                                   OR
           (i) life of slavery / enslavement/ dependent / no free will / no freedom
                / servitude / subjection                                                      1 mark
           (ii) living in a puppet’s world / being slave / dependence on others               1 mark
           (iii) movements started through brainless wires, mindless habits / figures
                 wait with patience and obedience; stirred into a moment’s mimicry
                 of life.                                                                     2 marks
     (b) Short answer type questions (Poetry)
           Distrubution of marks :
           Content                                                                            1 mark
           Expression                                                                         1 mark
           (deduct ½ mark for two or more grammatical/spelling mistakes)


                                                   23
          Value points
          (i) – the narrator kills the other man because they meet on the battlefield
                –    both (the narrator as well as other soldier) had joined infantry as
                     they were out of work
                –    the narrator would have offered the other man a drink or would
                     have helped him monetarily if they had met elsewhere                  2 marks
          (iii) –    man should live in peace and harmony with nature
                –    he should live in peace with other human beings also
                Man’s Indifference
                – by not accepting nature’s holy plan
                – by not living in peace with nature and man                               2 marks
          (iii) –    people used to laugh in earlier times with their hearts and with
                     their eyes
                –    shook hands with their hearts
                –    were sincere and true in expressing emotions                          2 marks
8.   Short answer type questions (Prose)
     Questions are to be answered in 30-40 words.
     Distribution of marks:
     Content:                                                                               1 mark
     Expression                                                                             1 mark
     (deduct ½ mark for two or more grammatical/spelling mistakes)
     Value points:
     (a) Algernon’s imaginary friend, projected as a dreadful invalid
         –   gave an excuse to Algernon to go down into the country                        2 marks
     (b) Steps to Heaven
         –    death at gallows
         –    freedom
         –    becoming martyrs
         Gates of Hell
         –    enslavement
         –    being exiled to the Andaman Islands
         Why
         –    they were spared execution but were being transported to the Andaman
              Islands in handcuffs and fetters (bound hands and legs)                      2 marks


                                                24
     (c) –     rural and urban India
         –     ancient and modern India                                                   2 marks
     (d) Epochal and revolutionary
         –   women came out for the first time to shoulder the responsibility of a
             work which was physically challenging
         –   actively participated – boycott, civil disobedience, picketed liquor shops
         –   broke all “Social Taboos”
         –   majority involved in Gandhian movement                                       2 marks
     (e) –     despite his blindness he was his own master and successful in life
          –    had survived the Westbury chemical explosion tragedy
          –    from being a skilled labourer he had become rich and successful
          –    though handicapped yet struggled hard, alone, to emerge successful
          –    gladly appreciated Nature                                                  2 marks

9.   [These questions have been set to test the students' understanding of the text
     and their ability to interpret, evaluate and respond to the issues raised therein.
     Hence no particular answer can be accepted as the only correct answer. All
     presentations may be accepted as equally correct provided they have been duly
     supported by the facts drawn from the text. The important thing is that the
     student should be able to justify his or her viewpoint.]
     Distribution of marks:
     Content                                                                              5 marks
     Expression                                                                           5 marks
         Grammatical accuracy, appropriate words and spellings [2½]
          Coherence and relevance of ideas and style                  [2½]
     Value points:
     –   extremely apt
     –    last day of Mr. Gupta’s stay in London- Maggie gives him one shilling to buy
          flowers to be laid on her brother’s grave in India.
     –    spirit of supreme sacrifice – brought tears to his eyes
     –    love of a sister for a brother
     –    aware that in India (a) Flowers are cheap (b) Flowers in abundance
     –    yet takes the money from her – did not want to deprive her of the joy this
          sacrifice would give her
     –    flowers epitomize a sister’s love for a brother


                                                 25
                                         OR
      Support
      –   more and better machinery means more production of material goods
      –   more material goods mean no poverty or destitution, therefore more happiness
      –   machines confer power, therefore they are valued
      Against
      –    machines dominate human beings and make them less human and more like
           machines themselves
      –    cause pollution and destitution
      –    no happiness from material wealth
      –    deprive us of spontaneity and variety

10.   Distribution of marks:
      Content                                                                              3½ marks
      Expression                                                                           3½ marks
           Grammatical accuracy, appropriate words and spellings [2]
           Coherence and relevance of ideas and style            [1½]
      Value Points:
      Master story teller
      –   made up a story instantly after listening to others
      –   narrated a story with real names, place, in first person showing how he
          himself was affected by it
      –   captivated everybody by talking of a face on the wall resembling a real person
      How the group was gulled
      –   told the group that it wasn’t a real story
      –   had made it up in the last half an hour
      –   the end was an anticlimax                                           (any one)
                                         OR
      –    unlike in olden days handicapped people are not killed
      –    today there are 120 organisations for the disabled
      –    there are more than130 wheelchair basketball teams
      –    a totally deaf woman holds the world record for driving a vehicle on land
      –    the President of Hofstar University is a man with cerebral palsy
      –    blind skiers have made a name for themselves
      –    plays and movies have been made on handicapped people
      –    the present is most favourable time for the handicapped people to live


                                                 26
11.   Short answer type questions
      Questions are to be answered in 30-40 words.
      Distribution of marks :
      Content :                                                                               1 mark
      Expression :                                                                            1 mark
      (deduct ½ mark for two or more grammatical/spelling mistakes)
      Value points :
      (i) –    felt vindicated
          –    felt good and relieved that his honesty and sincerity had finally been
               recognized and rewarded                                                        2 marks
      (ii) –      none of the Wangs had been killed
           –      the Wangs had not seen a Japanese in their life
           –      had not seen any evidence of the war so far                                 2 marks
      (iii) –     the young boys and girls had not been with him since their childhood
            –     they had been brought up in different conditions and environments
            –     they did not belong to the same religion
            –     no trained teachers available
            –     lack of resources and literary equipments
                                           (any two)                                          2 marks
      (iv) –      equipped with physical strength and stamina
           –      intellect, patriotic fervour, spiritual values that lead to fearlessness
           –      play a positive role in the restructuring and strengthening of economy of
                  nation
           –      immense burst of idealism and energy
           –      deep commitment to the task of safeguarding the country
           –      physical, intellectual, patriotism, spiritual dimensions
                                             (any two)                                        2 marks

                                  QUESTION PAPER CODE 1/1
                            EXPECTED ANSWERS/VALUE POINTS
                                     SECTION A : READING

1.    COMPREHENSION PASSAGE
(a)   NOTE: No marks should be deducted for mistakes of grammar, spellings, or
      word limit. Full marks may be awarded if the student has been able to identify
      core ideas.


                                                   27
      (i)    –   reputed as the technology nerve centre
             –   back office to world
             –   production centre                  (any two)
             –   unique cultural identity / secularism / democracy / role model
                      (if only the second part has been done 1 mark)                        1+1=2 marks
      (ii)   –   more than half the country below 25 years of age / more than one
                 third under 15 yrs of age / majority of population young                        1 mark
      (iii) –    if the youth are not properly educated
            –    if enough jobs are not created                                            1+1 = 2 marks
      (iv) –     high drop out percentage rate
             –   80 million children in the age group 6-14 do not attend school
             –   slow industrialization
             –   slack domestic economy
             –   intricate / inflexible labour laws
             –   lack of capital
             –   control on foreign investment
             –   bureaucratic hurdles / red-tapism
                                            (any one)                                            1 mark
      (v) –      the 30,000 outdated statutes / restrictive laws / too many laws                 1 mark
      (vi) ensure each child is educated / raise infrastructure spending coupled with
           rapid privatization / relax labour laws / create employment opportunities for
           the educated youth / understand the aspirations and urgency of its youth /
           participate in democracy / take advantage of economic reforms / awaken to
           the fact that they can wield immense political power / business pursuits /
           educational charities / inviting more foreign direct investments
                                           (any two)                                             2 marks

(b)   (i) breathtaking                                                                           1 mark
      (ii) boom                                                                                  1 mark
      (iii) capital                                                                              1 mark

2.    Note:
          If the student has attempted only summary or notes, due credit should
          be given.
          1 mark for title be given if the student has written the title in Q2(a) or
          Q2(b) part
          Min. 3 main headings and 3 sub headings for content


                                                 28
The notes provided below are only guidelines. Any other title, main points and
sub-points should be accepted if they are indicative of the student’s understanding
of the given passage and the notes include the main points, with suitable and
recognizable abbreviations. Complete sentences should not be accepted as notes.
If a candidate writes complete sentences, deduct ½ mark from the total.

Numbering of points can be indicated in different ways and these should be accepted
as long as a consistent pattern is followed.

(a) NOTE MAKING
     Distribution of Marks
     Abbreviations / Symbols (with /without key) — any four                           1 mark
     Title                                                                            1 mark
     Content (minimum 3 sub headings with proper indentation and notes)               3 marks
     Suggested Notes
     Title: Vagaries of Weather / Nature’s Fury / Global Warming / Climate
            Change / any other suitable title
     1.      Massive heat wave, chaos across Cen. East. Europe
             1.1 1000s. face massive relief oprn.
             1.2 death toll mounting
             1.3 forest fire under control in Portugal
             1.4 situn. imprvd. in some countries
     2.      Damages
             2.1   1000s. evacuated
             2.2   many villages abandnd.
             2.3   flooded houses & landslides
             2.4   Germany worst hit
     3.      Reasons behind the bedlam
             3.1 jet stream, high speed winds
             3.2 global warming
             3.3 other factors also present
             3.4 climatic changes due to N A O
(b) Summary
     The summary should include all the important points given in the notes.
     Content:                                                                         2 marks
     Expression                                                                       1 mark


                                             29
                          SECTION B : ADVANCED WRITING SKILLS
3.   ADVERTISEMENT
     Content                                                                            3 marks
     Expression                                                                         2 marks
     Suggested Value Points
     Title: SALE AND PURCHASE / CAR FOR SALE / FOR SALE
     – car make and model
     –    kilometers covered
     –    colour / condition / price
     –    any other relevant details
     –    contact name and address / telephone no.

                                       OR
     POSTER
     Content                                                                            3 marks

     Expression                                                                         2 marks
     Suggested value points:
     Title: BE PREPARED / WAKE UP CITIZENS / LEARN DISASTER
     MANAGEMENT / any other
     –    should highlight dangers and suffering
     –    precautionary measures – go into open space / watch out for tremors / any
          other

4.   LETTER WRITING
     [Note: - No marks are to be awarded if only the format is given. Credit should
     be given to the candidate’s creativity in presentation of ideas. Use of both the
     traditional and the new format is permitted. However, mixing up of the two is
     NOT acceptable.]
     Format                                                                             2 marks
     1. sender’s address, 2. date, 3. receiver’s address, 4. subject heading,
     5. salutation, 6. complimentary close.
     Content                                                                            4 marks
     Expression                                                                         4 marks
          Grammatical accuracy, appropriate words and spellings [2]
          Coherence and relevance of ideas and style                [2]


                                                   30
     Suggested value points:
     (LETTER OF ENQUIRY)
     –    reference to advertisement
     –    information to be given: choice of destination, group size, tentative dates
          suitable to you
     –    requirements/ enquiries : discount, passport, visa, itinerary, type of hotel,
          airways and timing / any other
                                         OR
     Suggested value points:
     (LETTER TO COMMISSIONER OF POLICE)
     –   reference to the news item, police criminality increasing
     –   police need to restore public image, faith and trust
     –   law protectors turning law breakers and criminals
     –   suggestions: need for tight monitoring, punish offenders, transparency in
         handling matters, public awareness, taking measures so that the innocent are
         not exploited, curb temptations to accept bribe, reminder of oath and
         commitment to nation and citizens, need to do soul searching / any other
         (any two)
5.   REPORT WRITING
     Format                                                                                  1 mark
     Title and reporter’s name,(date and place - optional)
     Content                                                                                 4 marks
     Expression                                                                              5 marks
         Grammatical accuracy, appropriate words and spellings [2½]
         Coherence and relevance of ideas and style            [2½]
     (YOUNGSTERS GIVE A NEW LOOK TO COLONY/ any other relevant
     heading)
     Suggested Value Points
     –   what
     –   when
     –   where
     –   who                           (whichever applicable)
     –   detailed description to include birth of idea, team working, motivation, planning
         and execution, difficulties, how they were overcome, sense of achievement,
         satisfaction
     –   any other relevant details


                                                  31
                                         OR
     (BOOK WEEK)
     Suggested Value Points
     –   what
     –   when
     –   where
     –   why                            (whichever applicable)
     –   other details: activities, preparation, participation and visit of eminent people,
         usefulness
     –   any other relevant details
6.   ARTICLE WRITING
     Format (Title and writer’s name)                                                         1 mark
     Content                                                                                  4 marks
     Expression                                                                               5 marks
     Grammatical accuracy, appropriate words and spellings [2½]
     Coherence and relevance of ideas and style            [2½]
     Suggested Value Points
     (INDIAN TV DOING GREAT SERVICE)
     –   reference to different programmes and channels
     –   service to people: through 24 hours of the day
     –   wide choice / variety to cater to all age groups
     –   information and news at your doorstep
     –   educational value of some programmes such as helpline, discussion, animal
         planet, history channel, national geographic etc.
     –   thrust to economic activity, aid to industry, employment opportunities
     –   common man brought to limelight
     –   any other relevant point
                                        (any four)
                                         OR
     Suggested Value Points
     (BIRTH OF A GIRL CHILD – NOT WELCOME)
     –   reference to survey findings
     –   personal views and reactions
     –   importance of women
     –   suggestions: law to safeguard / need to educate and inform women about
         their rights/ highlighting women achievers in print / electronic media / strict
         punishment for violators
     –   any other relevant point
                                       (any four)


                                                  32
                                  SECTION C : LITERATURE
7.   [This question has been designed to test the students’ understanding of the
     text and their ability to interpret, evaluate and respond to the questions based on
     the given stanza. In other words it attempts to test their reading comprehension
     ONLY.]
     Value points:
     (a)   (i)    – the narrator / speaker / soldier, the enemy he killed                   ½+½= 1 mark
           (ii)  they do not have personal enmity / would have met as friends if not on
                 battle field / war makes enemies of normal human beings                        2 marks
           (iii) – measure for liquor / alcohol                                                  1 mark
                                             OR
           (i) – in the temple court of Benaras                                                  1 mark
           (ii)   ‘To him who loveth best, a gift from Heaven.’ / that it was a gift from
                  heaven for the person who loves mankind the best                               1 mark
           (iii) God showers his love on those who have selfless love / sympathy /
                 mercy for mankind                                                              2 marks
     (b) Short answer type questions (Poetry)
           Distrubution of marks :
           Content                                                                               1 mark
           Expression                                                                            1 mark
           (deduct ½ mark for two or more grammatical/spelling mistakes)
           Value points
           (i) Slavery – our shackles that prevented our progress of marching ahead
               bravely into a resplendent future / the burden was the slavery that
               prevented progress / caused loss of dignity / courage / identity / vision        2 marks
           (iii) Because it blooms in daylight / adds joy to the beholder                       2 marks
           (iii) –     Wonder – unbounded joy at the various sounds, sight and activities
                       of birds and animals living in harmony
                  –    Sadness to think of what man has made of man                             2 marks
8.   Short answer type questions (Prose)
     Questions are to be answered in 30-40 words.
     Distribution of marks:
     Content:                                                                                    1 mark
     Expression                                                                                  1 mark
     (deduct ½ mark for two or more grammatical/spelling mistakes)


                                                   33
     Value points:
     (a) Maggie and mother worried about brother in India – no news, heard India
         was a country of snakes and tigers, feared he might have been killed,
         wanted to know if it was true                                                    2 marks
     (b) Machines deprive us of spontaneity and variety and make life mechanical
         and monotonous                                                                   2 marks
     (c) It couldn’t make inroads among the common masses. Confined only to a
         small and educated section of women                                              2 marks
     (d) –     though tedious, provides many opportunities
         –     opens before us a great literature which is still unknown
         –     allows insight into thoughts deeper, than any other we have known
               before
          –    appeals to the deepest sympathies of the human heart
                                        (any one)                                         2 marks
     (e) Mr. Worthing was an orphan whose parentage was not known. Gwendolen
         was brought up with utmost care, could not be given away to a person
         whose lineage could be linked to a parcel and cloakroom (i.e. a person who
         could not establish a proper lineage)                                            2 marks

9.   [These questions have been set to test the students' understanding of the text
     and their ability to interpret, evaluate and respond to the issues raised therein.
     Hence no particular answer can be accepted as the only correct answer. All
     presentations may be accepted as equally correct provided they have been duly
     supported by the facts drawn from the text. The important thing is that the
     student should be able to justify his or her viewpoint.]
     Distribution of marks:
     Content                                                                              5 marks
     Expression                                                                           5 marks
     Grammatical accuracy, appropriate words and spellings            [2½]
     Coherence and relevance of ideas and style                       [2½]
     Value points:
     –   death by hanging – only suffering for a few moments – better than death in
         exile
     –    Andaman – life long suffering and repeated torture
     –    jailor cruel, prisoners made to do hard laborious work
     –    tropical diseases rampant – often fatal



                                                34
      –    climate hot and humid – difficult to live in
      –    even if one was released he had no way of coming back home
      –    would be exposed to more dangers from the unfriendly aborigines
      –    any other relevant point
                                           (any five)

                                           OR

      Mr. Parsons’ characteristics / qualities / handicaps / rise in status
      The story brings out the contrasting attitude and qualities of Parsons and Markwardt
      Parsons
      –    positive / optimistic
      –    determined
      –    diligent
      –    rises above his handicaps to emerge successful
      –    enjoys life                (any three)
      Markwardt
      –   negative / pessimistic
      –   escapist
      –   cries over his handicap
      –   indulges in self pity
      –   lives the life of a beggar
      –    life – a burden for him
      –   though a villain yet projects himself as a victim
                                             (any three)
      Note: students must bring out a sharp contrast between the attitudes and character
      of Parsons and Markwardt by quoting relevant incidents from the story to
      substantiate the given statement.

10.   Distribution of marks:
      Content                                                                                3½ marks
      Expression                                                                             3½ marks
      Grammatical accuracy, appropriate words and spellings               [2]
      Coherence and relevance of ideas and style                          [1½]
      Value Points:
      –   listened to everyone’s stories about the inexplicable mystery of supernatural
      –    acceded to the request of the group and made up a story on the spot


                                                   35
      –     said he was going to narrate a real story and said truth was stranger than
            fiction
      –     put himself as the main protagonist
      –     left the group literally mortified
      –     finally disclosed that he had made up the story thus surprising the group with
            his anticlimax
      –     by telling about such strange coincidences, he was able to fool the group first
            and later by revealing the truth, he made them realize the futility of their
            exercise
                                           (any four)
                                            OR
      –     wins sympathy because of her extraordinary qualities
      –     wise – village respects her wisdom
      –     loving and caring
      –     superstitious and ritualistic – donates to get her husband out of purgatory –
            fears the river
      –     ignorant of outside world – does not know how the Japanese could be
            different
      –     not afraid of destruction – the river has taught them how to build again
      –     refuses to accept that Japanese were waging a war
      –     innocent curiosity – wants to see the flying machine
      –     helps the Japanese soldier
      –     intelligent and brave – stops the enemy from advancing once she realizes the
            threat – opens the sluice gates knowing fully well that she would be drowned
                                           (any four)

11.   Short answer type questions
      Questions are to be answered in 30-40 words.
      Distribution of marks :
      Content :                                                                               1 mark
      Expression :                                                                            1 mark
      (deduct ½ mark for two or more grammatical/spelling mistakes)
      Value Points:
      (i)   no one is perfectly happy. Everyone suffers from some physical or mental
            shortcomings.                                                                     2 marks


                                                   36
(ii)   regretted the moment / a trial of his own honesty as he had been asked by
       family members to give a misleading statement to save Gresham, had been
       offered a hundred thousand dollars by Gresham                                    2 marks

(iii) –     the long confinement helped him gain wisdom / read widely during
            confinement including philosophy, religion, spiritualism
       –    realized the futility of material wealth / knew it would not give him any
            more pleasure
       –    so let the banker have false pleasures                                      2 marks

(iv) Barin had stolen Pulak’s alarm clock. Its presence was a continual reminder
     of Barin’s guilt / feared the continuous alarm would expose him                    2 marks




                                             37
                                   FUNCTIONAL ENGLISH

Time allowed : 3 hours                                                              Maximum Marks : 100

     General Instructions :
     (i)   The paper is divided into four sections : A, B, C and D. All the sections are compulsory.
     (ii) Separate instructions are given with each section and question, wherever necessary.
          Read these instructions very carefully and follow them faithfully.
     (iii) Do not exceed the prescribed word limit while answering the questions.


                                    QUESTION PAPER CODE 212/1
                                          SECTION A : READING                                     (20 marks)

1.         Read the following passage :
           1.   Prema Dhanraj was eight when a stove on which she was making coffee
                burst and the flames leapt up to swallow her face. Prema was a beautiful
                child with dark almond eyes and chiselled features. But on that fateful day in
                1965, within seconds, her face had melted into a mass of flesh.
           2.   She was admitted to Christian Medical College Hospital, Vellore, with 50
                per cent burns. Seeing her first-born battle for life, Rosie, her mother made a
                pact with God. “If you save my child, I vow to dedicate her to the service of
                your people. I will make her a doctor and work in this same hospital,” she
                prayed.
           3.   Prema survived. Dr. L.B.M. Joseph, renowned surgeon, painstakingly
                reconstructed every inch of Prema’s face. “It was excruciatingly
                painful,” recollects Prema. “I used to be angry with the doctors all the time.”
                After six months in the hospital, Prema returned to Bangalore to resume
                school. Her scarred face attracted attention; it baffled, confused and
                embarrassed people. School was never the same again. Prema completed
                high school privately.
           4.   “My family had hidden all the mirrors in the house. Only after a year I
                happened to catch a reflection of my face in a mirror. I cried. I was angry. I
                threw tantrums. My mother waited patiently for my tears to dry.” Then she
                told Prema, “This is your face and you will have to live with it. No one can
                change that. But what you do with your life is in your hands and only you can
                change it.” It was a hard lesson to learn. And it took her a long time to grasp
                its meaning.


                                                       38
5.   “I barely scraped through my Class 10 exams,” Prema reminisces. “But the
     fact that I cleared my exams gave me immense confidence.” She obtained a
     B.Sc. degree and Prema admits, “Those were the most difficult years of my
     life — academically and socially.”
6.   Between 1965 and 1971, Prema underwent 14 reconstructive surgeries
     before she put an end to it. “It was time for me to concentrate on other things
     in life.” Prema obtained her MBBS degree in 1980, and went to work at
     CMCH, Vellore, under Joseph, thus fulfilling her mother’s promise to God.
     She specialised in Plastic and Reconstructive Surgery.
7.   Today Prema is known as one of the most successful surgeons in the medical
     fraternity, with a success rate of 99 per cent. A recipient of many awards,
     currently, she is helping set up the first burns unit in Ethiopia, which has the
     maximum number of burns victims in the world. Prema was invited by the
     Ethiopian and Norwegian authorities to train doctors in Ethiopia and she
     trained Ethiopia’s first plastic surgeon. She has also pioneered a programme
     in collaboration with U.S. — the “Smile Train” Project — where all patients
     with cleft lip and cleft palate will be given free treatment at CMC, Vellore.
     She is further involved in training doctors from Kenya and Tanzania. Her
     first Kenyan student will arrive in Vellore by October 2005.
8.   Prema agrees that bitterness and anger were a part of her life for a long time.
     “My mother taught me how to channelise my negative emotions in a positive
     manner.” Today, Prema’s only regret in life is that her mother is not alive to
     witness her success in life. “She would have been happy and proud.”
     However, those dark days are now behind her. “If not for my accident I
     wouldn’t have achieved so much in life. I have got more than I bargained for.
     I never thought that I could reach far in life with my face.”
9.   Even today, her patients are taken aback when they see her. But soon, her
     face becomes a source of encouragement and confidence. They feel that if
     she can do it, so can they. “Children feel encouraged and confident once
     they see me and hear my story,” she says.
10. Prema’s advice to all those who feel defeated in life: “Stop comparing yourself
    with others. Be willing to face reality and move on in life. Develop a cheerful
    attitude. Be humble and trust in God. Then sit back and enjoy life.”
11. Prema says that all her dreams have been fulfilled or nearing fruition. Yet,
    she has one last dream left. “I should have a quick death and when people
    see me they should say, ‘she looks so beautiful and peaceful’. I want to look
    more beautiful than I am now when I meet my Lord.” One of her patients
    puts it in perspective : “All that is striking and beautiful is not always good
    but that which is good is always beautiful.”


                                            39
     1.1 On the basis of your understanding of the passage answer the following :
          (a) How did Prema fulfill the promise that her mother had made to God?                2
          (b) What made Prema angry when she was being treated in the hospital ?                1
          (c) Why had Prema’s family hidden all the mirrors in the house ?                      1
          (d)   “This is your face and you will have to live with it. No one can change
                that.” What message was Prema’s mother trying to give her ?                     2
          (e)   Do you consider Prema to be a beautiful person ? Give reasons for
                your answer. (At least 2 reasons)                                               2
     1.2 Pick out the words from the passage which mean the following :                         4
         (i) Well defined/strong (para-1)
         (ii) extremely (para-3)
         (iii) recalls/recollects (para-5)
         (iv) completion (para-11)

2.   Read the passage given below :
     Climate change is the phenomenon caused by global warming. Natural cycles of
     warming and cooling have occurred many times in Earth’s history, and indeed the
     rise of Homo sapiens is attributed to the end of the last Ice Age some 11,000
     years ago. What worries scientists is man-made global warming — when carbon-
     rich fuels stored for aeons beneath the ground are extracted and burned, releasing
     billions of tonnes of carbon dioxide (CO2) each year. This is a “greenhouse gas” :
     it traps the sun’s heat in the atmosphere instead of letting it radiate out to space. As
     a result the Earth’s surface is warming, disrupting the planet’s delicate climate
     system.
     The more CO2, the higher the temperature and the higher the temperature, the
     bigger the impact. At the lower range of the Intergovernmental Panel on Climate
     Change estimates, there will be a tiny increase in global sea levels and some
     increased water stress, and some regions in higher latitudes may, in fact, benefit.
     At the higher range, droughts, floods and storms will become more violent and
     more frequent, mean sea levels could rise by up to 88 centimetres (2.9 feet) by
     2100, creating an exodus of “climate refugees”. Almost all of the world’s population
     will be affected, but poor tropical countries will be hit worst.
     A top science conference in February declared that climate change is already
     underway, visible through glacier shrinkage, melting of polar ice, shifts in rainfall
     patterns and heat waves. Experts say that if the world wants to keep to the bottom
     end of the IPCC temperature estimates, global emissions of CO2 will have to
     peak in 2020 and then fall to half of today’s levels by 2095 — a tall order, given
     that developing countries and the U.S., are gobbling up fossil fuels.


                                                   40
     The obvious answer : stop using fossil fuels and use clean energy sources such as
     wind, solar, hydro and hydrogen. But this is easier said than done. Oil, gas and
     coal are the world’s long-established energies and have big advantages in cost
     and efficiency over technologies that are still in their infancy and need tax breaks
     or regulatory help to make headway. In addition, the fossil-fuel lobby is fighting a
     fierce rearguard action, particularly in Washington, to keep its crown. Over the
     next couple of decades, the best hopes may lie in interim solutions such as better
     fuel efficiency, promoting hybrid cars and storing CO2 underground from coal as
     the fuel is burned rather than letting the damaging gas escape into the air.
     The U.N. ’s Kyoto Protocol requires industrialized countries to limit their emissions
     of greenhouse gases by a 2012 timeframe as compared to a 1990 benchmark. It
     took effect last February, surviving abandonment by the U.S., which opposed
     binding targets as too expensive for its economy, and foot dragging by Russia. But
     Kyoto remains in a bad way. Even its European champions are having big problems
     meeting their pledges. The treaty is criticized for making only timid cuts (just one
     or two per cent at best, after the U.S. walkout), for being complex and for not
     including countries which are big polluters, in commitments on emissions cuts.
     Negotiations for the post-2012 Kyoto start in Montreal in November.
     (a) On the basis of your reading of the above passage make notes on it using
         headings and sub headings. Use recognizable abbreviations wherever
         necessary.                                                                                  5
     (b) Using your notes write a summary of the above passage in 80-100 words.                      3

                               SECTION B : WRITING                                           (30 marks)

3.   You are Shalini/Sohan a member of an NGO Jagriti which is trying to spread
     awareness about the necessity to save water. Design a poster for the organization
     about this issue in not more than 50 words.                                                     5
4.   Bhaskar Chandra visited Leh during his summer break. He jotted down few facts
     about the area since he was required to write a factual description of the place for
     a brochure. Using the points given below write the description for him.
                                                            (Word limit 80-100 words)                5
      Location - Ladakh district - east of Srinagar - surrounded by Himalayas -Zanskar
      River
      Climate - winter temperature - below zero - best time - July to September
      Popular cuisines - Tibetan and Kashmiri
      Souvenirs - paintings / prayer wheels / music bowls / carpets / shawls.
      Sites to Visit - Shanti Stupa - Leh Palace - once home to royal family - Namgyal
      Tsemo Gompa - beautiful monastery - has three-story high Buddha image and
      ancient manuscripts.


                                                  41
5.   Krishna Surya of 2/3 Navi Sarak, Chandi Road, Mumbai sees this advertisement.
     He is interested in joining these classes. He decides to write a letter to the Director
     of Creative World asking him details of the course - the fee structure; the date of
     starting the course; availability of transport and other relevant details. Write the
     letter for him.                                                    (125-150 words)


                        LEARN PAINTING AND SKETCHING
                                             AT
                                   CREATIVE WORLD
                                             On
                                    Canvas/Glass/Fabric

     For further details contact undersigned :
     Director
     Creative World
     E-234 Great Noida
     UP

                                             Or                                                10

     Is hanging a cruel and unusual punishment ? The execution of a person accused of
     a callous murder of a teenager, brings the curtain down on a debate over the
     wisdom of retaining the death penalty. Write a letter to the editor regarding this
     issue either in support or against this form of punishment. You are Kamini/Kaushal
     of 2/34R, Akbar Road, Lucknow.                                     (125-150 words)

6.   Read the given news headline.

     Competitive exams test problem-solving skills and application of theory

     Problem solving skills are not an indicator of holistic assessment

     Entrance exams stress students

     Mushrooming of coaching centres - exhorbitant fees

     You are Abha / Abhishek Saran, a student of class XII. You read these news items
     and decide to write an article for the local newspaper on your views regarding the
     current state of entrance examinations prevalent in the country. (150-200 words)          10



                                                   42
                                           Or
     You are Meghna / Magadh. You are upset at the kind of photographs being published
     in the leading national dailies. Newspapers prefer to print photographs that expose
     the body of sports women and others rather than speak about the quality of their
     work. Write an article on the growing trend towards sensationalising news.
                                                                       (150-200 words)

                                SECTION C : GRAMMAR                                           (15 marks)
7.   Rearrange the words in the following sentences to make complete sense. The first
     one has been done as an example :                                                                3
          a lot of/requires/mountaineering/a/expedition / careful planning.
          A mountaineering expedition requires a lot of careful planning.
     1.      and / waterproof tents / light warm / the equipment / includes special oxygen
             cylinders, / clothing/
     2.      no footholds / have to make / climbers / over walls of rock / their way /
             where there are /
     3.      they carry / this dangerous path / their tents, /across / food and everything
             else / instruments, / they may require.

8.   The following passage has ten errors. Identify the errors in each line and write
     them along with the corrections as shown in the example.                                         5
                                                                          Incorrect Correct
     Many people thought that theoretical                                 thought - think
     (a) science is higher than the practical ones. But there
     (b) is the connection between the two. A study
     (c) of astronomy, seems at first sight to having no
     (d) practical important. Yet the science of
     (e) astronomy develop from the practical
     (f)     need of people which crossed deserts and
     (g) oceans. Navigation uses astronomy to establishing
     (h) direction and position. That desire to know more
     (i)     has resulted into the making of optical instruments
     (j)     likes the telescopes.

9.   Robert / Rachna Sood decides to buy a colour TV. Frame 8 questions that he/she
     could ask the salesman regarding the best TV available: the price, clarity of picture,
     any special features, no. of channels, home installment and discounts if any.                    4


                                                   43
10.   Raj / Rajni applied for a job at a call center. He/she appeared for the interview.
      Write three sets of dialogue that he/she had with the interviewer with help from the
      hints given below.                                                                             3

       Qualifications - reason for applying - can work at night - salary expectations
      Example :
      Interviewer: Good morning Mr. Raj. Can you tell me something about yourself ?
      Raj          : I have just completed my graduation.

                              SECTION D : LITERATURE                                         (35 marks)

11.   Read the following extract and answer the questions that follow :
      “No doubt they’ll soon get well; the shock and strain
      Have caused their stammering, disconnected talk.
      Of course they’re ‘longing to go out again,’-
      These boys with old scared faces, learning to walk.’
      (a) Name the poem and the poet.                                                                1
      (b) Who are the ‘boys’ referred to in the last line ?                                          1
      (c) Who or what is responsible for their stammering and disconnected talk ?
          What are they suffering from ?                                                             1
      (d) Who is the speaker of these lines ?                                                        1
      (e) Comment on the line ‘Of course they’re longing to go out again’. Do you
          think the speaker is correct in his opinion ?                                              2
                                          Or
                        ‘Is it so easy, then ? Goodbye no more than this
                         Quiet disaster ? And is there cause for sorrow
                       That in the small white murder of one kiss
                  Are born two ghosts, two Hamlets, two soliloquies,
                              Two worlds apart, tomorrow ?
      (a) What is the ‘quiet disaster’ being mentioned in the second line ? What is the
          poetic device used here ?                                                                  2
      (b) Who are the two Hamlets mentioned here ? Why have they been compared
          to Hamlet?                                                                                 2
      (c) Pick out two ironical facts mentioned here ? And explain why they are
          ironical ?                                                                                 2


                                                  44
12.   Answer any three of the following in about 50 words :                                   3×3=9
      (a) In the poem ‘Of Mothers, Among Other Things’, what starts the chain of
          memories about the narrator’s mother ? How has she changed with age ?
      (b) Why does Archibald Macleish compare a good poem to a flight of birds ?
      (c) In the poem ‘Sympathy’, what are the sights, sounds and smells of spring
          that agitate the caged bird ?
      (d) Who has autumn been personified as in the poem ‘Ode to Autumn’ ? What
          were the activities it was performing in and around the fields ?

13.   Answer any one of the following in about 80-100 words :                                     5
      What was Alexander’s relationship with Queen Mother like ? Why had
      Alexander sent Perdiccas to Babylon ? Why was Perdiccas late in returning from
      this mission ? What surprised him on reaching Alexander’s camp ?
                                          Or
      ‘Mr. White does not believe in the powers of the monkey’s paw.’ Do you agree
      with this statement ? Give reasons for your answer.

14.   Answer any three of the following in about 50 words each :                              3×3=9
      (a) In the story ‘What’s your dream ?’, what was responsible for the beggar’s
          poverty stricken state ?
      (b) What has turned into a rundown machine ? Why does the writer call it a run
          down machine ?
      (c) What makes Lisa feel that ‘life has become so tremendous that there is no
          longer any place in it for art.’ ?
      (d) ‘With the absence of mental stimulus of this kind, human co-operation would
          be entirely impossible.’ What is the mental stimulus referred to in this line ?
          When can this become dangerous for society ?

15.   The night before Robichon’s speech at Appeville-Sous-Bois, Quinquart writes in
      his diary about his apprehensions regarding the effect of Robichon’s speech on his
      audience and reveals the plan he has in mind to prove himself to be the better
      actor. Write the diary entry in not more than 100-125 words.                                6
                                          Or
      Mrs. Malik expresses her bitter-sweet feelings about finally moving into her own
      house. She also looks back on her attitude towards her mother-in-law and how
      she feels to find herself in the same shoes now. Write about her feelings in not more
      than 100-125 words.


                                                   45
                                     QUESTION PAPER CODE 212
                                        SECTION A — READING                                         (20 marks)
Al.       Read the following passage :
      1   Recently I attended a seminar on motherhood. It was well attended by people
          from different walks of life. When my turn came, I narrated an incident,
          which I had witnessed.
      2   Manjula was a cook in Dr. Arathi’s house. She already had five children when she
          became pregnant for the sixth time. She did not want this pregnancy.
      3   Dr. Arathi had a different idea. Her sister was rich but childless and wanted to
          adopt a newborn baby. Arathi suggested : “Manjula, you have this baby and
          irrespective of the gender, my sister will adopt it. She does not stay in this place.
          So, you won’t need to see the baby. She will also offer money, which will help
          with your other children’s education. But the decision is yours and I will not insist.”
      4   Manjula thought over the idea and then agreed. She delivered a baby girl but
          when the time came to hand over the child, Manjula changed her mind. She started
          crying, “Madam, I agree that I am very poor. Even if I get a handful of rice, I will
          share that with this baby. But I cannot part with it. She is so tiny and dependent on
          me. Please pardon me.”
      5   Though she had five other children, suddenly this baby became very dear
          to her. Arathi and her sister were upset because they had been ready to welcome
          this baby into their home. But they understood.
      6   I concluded my talk saying that I had often seen a mother ready to sacrifice
          everything for her children. There was much applause. I was satisfied, for my
          speech had come from my heart. I was about to step out of the building on my
          way to office when I saw Meera.
      7   Meera teaches orphans in a school for the blind. She had come on behalf of her
          school to attend this seminar. I knew her fairly well. I asked her, “Meera how are
          you ?”
      8   She was quiet for a minute. “I am fine. Madam, can you do me a favour ? Ahmed
          Ismail is supposed to drop me at school. But he just called to say he is stuck in a
          traffic snarl and will take more time. So can you drop me off ?” Ahmed Ismail was
          the kind-hearted Trustee of her school.
      9   Meera’s school was on the way to my office; so I agreed. I noticed that Meera
          seemed a little dull. “Meera, how was the seminar today ? Did you like my
          lecture ?” I was expecting a positive answer.
      10 But Meera answered, “I didn’t like your lecture. I’m sorry to say that but life is not
         like that.”


                                                        46
11 I was taken aback, not because she had not liked my lecture but at her comment.
   I wanted to know the reason behind it. “Tell me, Meera. Why did you say that ? I
   have narrated a true incident. Sometimes truth is stranger than fiction.”
12 Meera sighed, “Yes, Madam. Sometimes, truth is stranger than fiction. I will also
   tell you of a true incident. There was a five-year-old girl who was half blind. Her
   parents were both coolies. This little girl would complain that she could not see
   clearly. At last, they took her to a doctor. The doctor told them that the child
   needed an expensive operation or she would go blind, as she grew older. The
   parents talked to themselves and then took her to the bus-stand. There they gave
   her a packet of biscuits and told her, ‘Eat the biscuits. We will be back in five
   minutes’.”
13 “The child felt very happy at having a packet of biscuits all for herself, for the first
   time. She was jumping with joy and with her little vision she could see her mother’s
   torn red sari. Time passed and it was getting cold. She could sense that the day
   was getting darker but her parents never turned up. The packet of biscuits was
   over long back. She was alone, helpless and scared. She called her parents and
   searched for the torn red sari. She went from pillar to post and there was no
   reply.”
14 “What happened later ?” A kind-hearted man understood and took her to the
   blind school. The child waited for her mother, for several years, for a lady with a
   torn red sari. But no one turned up
15 I turned to Meera. She was crying. “Meera, how do you know all these details
   about that child ?”
16 Sobbing, she said, “Because I was that child. Now, tell me madam, how could
   my mother leave me like that ? I was deceived by a pack of biscuits. What happened
   to the motherhood that you spoke about ? Is it not valid even for my mother ? Is
   poverty more powerful than motherhood ? Answer me, Madam.” I did not have
   any answer for her.
                                                                      — Sudha Murthy

    A1.1 On the basis of your understanding of the passage answer the following in
         your own words :
            (a)   Why did Dr. Arathi’s maid eventually decide to have her sixth child ?       2
            (b) Why could the maid not part with the child ? Give two reasons.                2
            (c)   Why was the writer taken aback at Meera’s reaction to her lecture ?         1
            (d) Why did Meera’s parents take her to the bus stop ?                            2
            (e)   How are Manjula’s and Meera’s stories different ?                           2


                                                  47
      A1.2 Pick out the words/phrases from the passage which mean the opposite of
           the following :                                                                       3
           (i) huge (para - 4)
           (ii) fact (para - 11)
           (iii) cheap (para - 12)

A2.   Read the passage given below :
              They are soft, come in a splendid array of colours, shapes and sizes and
      though they are light, they are amazingly resilient and wonderfully strong. In fact,
      they are one of nature’s finest marvels. Do you know what they are ? Feathers !
               The feathers on different parts of a bird’s body are shaped differently, and
      have varying uses. The flight feathers on a bird’s wings are straight and stiff, while
      those covering its body overlap each other to give the bird an aerodynamic shape
      for efficient flight, and to keep out the wind and the water. A bird’s body feathers
      also act like a snug jacket, keeping the cold away from the delicate skin. The tail
      feathers are used for lifting, steering, and braking and these are perfectly symmetrical
      to allow a balanced flight.
              Since feathers are absolutely vital for flight and for warmth, birds spend a
      large part of their day cleaning and grooming their feathers by applying oil, bathing
      in water or dust, scratching and preening. Preening straightens out the feathers so
      they lock neatly together, and are smooth and unruffled. This is important, because
      a preened feather presents a solid surface to push against air during flight. It is
      incredible that birds also apply a kind of oil on their feathers with their beaks to
      keep them in perfect shape.
              Birds replace old feathers with new ones in a process called molting that
      takes place one or more times a year. The number of feathers a bird has varies
      from species to species. A Tundra swan may have over 25,000 feathers, while the
      tiny humming-bird has only about 1,000. An adult turkey has about 3,500 feathers.
              Feathers have always fascinated humans. Tribals in Africa and Asia and
      the aborigines in Australia adorned their bodies with bright and colourful feathers.
      The Red Indian tribes in North America used feathers to weave magnificent head-
      dresses.
              In Greek mythology, Daedalus tried to escape from his prison by attaching
      feathered wings to his shoulders. Feathers have also been used as a stuffing in
      beddings and pillows and in jackets.
              Feathers are made of keratin, a protein that is also used to make horn,
      hair and beaks. In human bodies, keratin makes up our nails and hair. Feathers
      determine what a bird looks like, since they supply the bird with the colours they


                                                    48
     come to be associated with. A crow’s ebony colour is caused by its black feathers,
     and a canary’s bright yellow hue, or a parrot’s green one are all due to their
     feathers. Feathers are also useful to camouflage and protect birds.
     A2.1 On the basis of your reading of the above passage, make notes on it using
          headings and sub-headings. Use recognizable abbreviations wherever
          necessary.                                                                                5
     A2.2 Using the notes write a summary of the above passage in 80-100 words.                     3

                              SECTION B — WRITING                                           (30 marks)
3.   You are Reena/Ram, the Sports Captain of Danapur National School, Patna,
     which is celebrating its Sports Day on the 24th of March. Design an invitation
     card to be sent to the parents and guests on this occasion. Mr. Rohit David, the
     famous athlete, will be the chief guest. Word limit : 50.                                      5
4.   Kajal/Karan of Jeevan Jyoti School, Kanpur is the Secretary of the School Social
     Service Wing. She/he was asked to write a notice for the school notice board
     informing students about the collection of old clothes/books/toys being organized
     for the poor. Write the notice in not more than 50 words.                                      5

5.   You are Meghna/Magadh. You are upset at the kind of photographs being published
     in the leading national dailies. Newspapers prefer to print photographs that expose
     the body of sportswomen and others rather than speak of the quality of their
     work. As a concerned citizen, write a letter to the Editor of your local daily
     newspaper expressing your anguish at the fall in the journalistic standards of
     newspaper reporting, which has been reduced to publishing only those news items
     and photographs which will sensationalize and thus increase circulation.
                                                                      (125 - 150 words)            10
                                         OR
     Jeena/Jeevan recently bought a new colour TV from M/s Tarun Sons and Co.,
     Main Street, Pune but she/he is very upset because the set is not functioning
     properly. Write a letter to the Manager asking for a replacement for the set.
     (125-150 words)
6.   The Tiger Task Force report recommends : “The habitat must be shared between
     the people and the tigers, so that both can coexist, as they must. The poverty of
     one, otherwise, will be the destruction of the other.” This report submitted by the
     Tiger Task Force restarts the debate on strategies to save the animal and at the
     same time protect the interests of people living in tiger reserves. You are Jagran /
     Jagriti. Write an article on the serious consequences of meddling with our
     environment and give suggestions on how to conserve our environment especially
     the endangered animals. (150-200 words)                                                       10


                                                 49
                                            OR

     Is hanging a cruel and unusual punishment ? The execution of a person accused of
     a callous murder of a teenager brings the curtain down on a debate over the
     wisdom of retaining the death penalty. You are Sabina / Siddharth. Write a speech
     you want to give at your school’s morning assembly regarding this issue, either in
     support of or against this form of punishment. (150 - 200 words)

                               SECTION C— GRAMMAR                                          15

7.   Rearrange the following sentences in proper sequence to make a paragraph that
     makes complete sense :
     (a) But the Nile did not flow evenly throughout the year.
     (b) When men started farming crops in the Nile Valley in Egypt, they seemed to
         have perfect conditions for farming.
     (c) Farmers have been faced with the problem of bringing water to dry lands
         from the earliest times.
     (d) Therefore the Egyptians learnt how to control water and irrigate their lands.
     (e) In summer it caused great floods, washing away precious soil.
     (f)   While in winter, the fields were dry and dusty and there was no water.

8.   The following passage has ten errors. Identify the errors in each line and write
     them along with the corrections as shown in the example :                              5
     People generally think of a lion and the elephant               a — the
     (a) as the most powerful animals in the earth.
     (b) But power would come in small packages, too.
     (c) The greatest natural dynamo are probably the little
     (d) hummingbird. It was the smallest warm-blooded
     (e) creature who has ever lived on earth. It is even tinier
     (f)   than some insects. It’s tiny body is covered with
     (g) nearly a thousand feather and in its body are
     (h) powerful muscles or a wonderful blood-pumping
     (i)   mechanism. This small creature has the great urge to
     (j)   live. It lives a life filled in wild activity, but it does not live too long.



                                                      50
9.    Your teacher had gone to America during the summer vacation to study the school
      system there. Frame eight questions that you would like to ask her regarding her
      observations on the items given in the box below :                                   4

              families, spending weekends, entertainment, lifestyle,
              food habits, travel, clothes, friends.

10.   Shyam appeared for an interview for the post of a PT teacher in a school. He was
      interviewed by the Principal. Write out three sets of dialogues exchanged between
      the two with help from the points given in the box. The first one has been
      done as an example.                                                                  3

              Qualifications - MA Physical Education; Work experience - Total 12
              years - 6 in boarding school; specialization - basketball; personal
              achievements - national team member-5yrs; adjudged best young
              basketball player in college

      Example :
      Shyam :      Good morning, sir. I am Shyam.
      Principal: Good morning, Mr. Shyam. I see you are interested in joining the
                 school as a PT teacher. What are your qualifications ?

                             SECTION D— LITERATURE                                        35

11.   Read the following extract and answer the questions that follow :
                              “I smell upon this twisted
                          blackbone tree the silk and white
                            petal of my mother’s youth.”

      (a) Name the poem and the poet.                                                      1
      (b) What does the blackbone tree refer to ?                                         1
      (c) Explain the term ‘silk and white petal of my mother’s youth.’                    2
      (d) Later on in the poem, the narrator talks about certain things associated with
           the mother’s old age. What are they ?                                           2

                                          OR

                               “Think not of them, thou hast thy music too -
                          While barred clouds bloom the soft-dying day
                          And touch the stubble-plains with rosy hue.”


                                                   51
      (a) Name the poem and the poet.                                                             1
      (b) Who is the person referred to as ‘thou’ ?                                               1
      (c) What is the ‘music’ being referred to in the first line ? Mention at least two
          sounds that form this music.                                                            2
      (d) What is meant by the expression ‘stubble-plains’ ?                                      1
      (e) What is the picture created by the last two lines ?                                     1

12.   Answer any three of the following in about 50 words each :                              3×3=9
      (a) What is the poet trying to convey through the title of his poem ‘Sympathy’ ?
      (b) Justify the title of the poem’Curtain’.
      (c) What do the parents of Sally in the poem ‘Sally in Our Alley’ do ? Why does
          she have to wait some time before she can marry the man she loves ?
      (d) What are the features of a good poem as discussed by the poet Archibald
          Macleish ?

13.   Answer any one of the following in about 80 - 100 words :                                   5
      Discuss the character of Alexander as depicted in the play ‘The Adventure Story’.
                                          OR
      How does the White family get the monkey’s paw ? Do you think they are happy
      to receive it ? Give reasons for your answer.

14.   Answer any three of the following in about 50 words each :                              3×3=9
      (a) What makes Quinquart feel that Suzanne had ‘been talking through her hat’?
      (b) According to Einstein what should true education aim at ?
      (c) Who were the Censors of Piety ? What were their duties ?
      (d) Why did the Maliks decide to build their house in Delhi ?

15.   Lisa changes from a little actress to a real actress, as a result of her experiences.
      Comment on her transformation. (100 - 125 words)                                            6
                                          OR
      After unburdening himself to his horse, Iona Potapov decides to write a letter to
      his daughter, Anissia, describing the cold, heartless people in the city, his growing
      sadness and the burden of having no one to share his grief with. Write the letter.
      (100-125 words)




                                                    52
                    Marking Scheme—Functional English

General Instructions :

1.   Answer scripts should not be given to the evaluators for evaluation until and unless the given
     Marking Scheme has been thoroughly discussed with them in a group or individually on
     the first day of evaluation.

2.   The Head Examiner must go through the first five answer scripts evaluated by each
     evaluator to ensure that the evaluation has been carried out as per the Marking Scheme.
     The remaining answer scripts meant for evaluation shall be given only after ensuring that
     there is no significant variation in the marking of individual evaluators.

3.   Evaluation is to be done as per instructions provided in the Marking Scheme. It should not
     be done according to one's own interpretation or any other consideration. However the
     Marking Scheme carries only suggested value points and does not constitute the complete
     answer.

4.   If a question has parts, please award marks on the right hand side for each part. Marks
     awarded for different parts of the question should then be totalled up and written in the left
     hand margin and circled.

5.   If a question does not have any parts, marks must be awarded in the left-hand margin.

6.   Where marks are allotted separately for content and expression as per the Marking
     Scheme they have to be reflected separately and then totalled. This is a mandatory
     requirement.

7.   A slash (/) in the Marking Scheme indicates alternative answers. If a student writes an
     answer which is not given in the Marking Scheme but which is equally acceptable, marks
     should be awarded only in consultation with the Head Examiner.

8.    If a candidate has attempted an extra question, marks obtained in the question attempted
     first should be retained and the other answer should be scored out.

9.   Under Section A, Reading (Q1) and Section D, Literature (Q11), questions have been
     designed to test a students understanding of the passage and his ability to interpret, evaluate
     and respond to the given passage. In other words only the reading skills are to be tested.
     As such, content assumes more importance than expression in the answers to these
     questions. Therefore students should not be unduly penalized for poor expression and
     incorrect spelling as long as the answer clearly reveals understanding of the passage.


                                               53
10. However where questions have been designed to test the writing skills of the students,
     expression (grammatical accuracy, appropriate vocabulary and style, spellings,
     organization and presentation of relevant matter in a coherent and logical way) is
     important.

11. Section C is on grammar. Care should be taken not to award marks to any inaccurate
     answer carrying errors in grammar and punctuation.

12. Wherever the word limit is given, no deduction of marks is to be made if the word limit
     has been exceeded by 25%. However, beyond the permitted limit marks are to be
     deducted as follows:

          a.      Penalty for exceeding the word limit for a 50 word answer - above 60, deduct
                  ½ mark

          b.      For a 80 word answer — Above 100 words, deduct ½ mark

          c.      For a 100 word answer — 125-150 words, deduct ½ mark
                                          — Above 150 words, deduct 1 mark

          d.      For a 125 word answer — 150-175 words, deduct ½ mark
                                          — Above 175 words, deduct 1 mark

          e.      For a 150 word answer — 175-200 words, deduct ½ mark
                                          — Above 200 words, deduct 1 mark

          f.      For a 200 word answer — 225-250 words, deduct ½ mark
                                          — Above 250, deduct 1 mark

13. If a student writes a single word in response to a short answer type question and it
     constitutes the core of the answer it should be accepted and awarded full marks.

14. If a student literally lifts a portion of the given passage as an answer to a question, no
     marks should be deducted for this so long as it is relevant and indicative of the desired
     understanding on the part of the student especially in Q.1 (Section A) and Q.11
     (Section D).

15. Please award full marks if the answer deserves it especially in the long answers
     i.e. Q.5, Q.6 (Section B), Q.13, Q.15 (Section D)




                                              54
                               QUESTION PAPER CODE 212/1
                          EXPECTED ANSWERS/VALUE POINTS
                            SECTION A (READING) 20 MARKS

Q1.l   READING                            PREMA                             TOTAL MARKS: 12
       Objective : To identify and understand main parts of the text.
       Marking : As marked in the question paper. No penalty for mistakes of spelling
                 and grammar.
                 Accept any other answer equivalent in meaning to the answers given
                 below. (8 Marks)
       Answers : (a) She became a doctor /dedicated herself to the service of the
                     people                                                               1
                     Worked in the same hospital in which she had been treated            1
                 (b) She was angry because the treatment was excruciatingly painful
                     / consisted of constant reconstruction                               1
                 (c) They did not want her to see her new face and get upset over
                     it.                                                                  1
                 (d) That one has to learn to adjust with the changes that occur in
                     life                                                                 1
                     No use crying over something that can’t be changed                   1
                     (She was the only one who could change it) / Bitterness and
                     anger don’t help.(any one))
                 (e) Possible answers - Yes,                                             ½
                     - has made a success of life without feeling bitter or frustrated
                     - dedicated her life to the service of her patients
                     - trusts God
                     - is always cheerful
                     - has channelized negative emotions in a positive manner
                     - has become a source of encouragement / motivation for
                          others.
                          (accept any two of the above or any other relevant answers)    1½
1.2    VOCABULARY
       Objective : to deduce the meanings of unfamiliar lexical items.
       Marking : 1 mark each (4 marks)
       Answers : 1.      chiselled
                 2.      excruciatingly
                 3.      reminisces
                 4.      fruition

                                                55
Q 2.   Note making and Summarizing                                                         Total Marks: 8
       Objective : To develop the skill of taking down notes
                   To develop the extracted ideas into a sustained piece of writing.
       Marking : Note making                                                      5 marks
                 Heading and indentation                                       ½ + ½ mark
                 Abbreviations / Symbols                                            1 mark
                 (with or without key, minimum four)
                      Content                                                       3 marks
                      (minimum three sub headings)
       Important instructions:
       The notes provided below are only guidelines. Any other title, main points and sub
       points should be accepted if they are indicative of the student's understanding of
       the given passage and the notes include the main points with suitable and recognizable
       abbreviations.
       Complete sentences should not be accepted as notes. Half a mark should
       be deducted from the total if the student writes complete sentences.
       Numbering of points can be indicated in different ways and these should be accepted
       as long as it follows a consistent pattern.
       (a) Note making
       Note : If the student has attempted only the summary or only the notes,
              due credit should be given.
       Suggested Notes
       Title : Global Warming / Global Warming-Matter of Concern (or any other
               similar, appropriate heading)
       I. General facts
          i. causes climatic changes
          ii. occurred many times
          iii. rise of Homo sapiens - end of last Ice Age - 11,000 yrs ago.
       II. Present conditions
           i. man made
           ii. C-rich fuels extracted and burned releasing billions of tonnes of CO2.
           iii. Traps sun’s heat in atmosphere.
           iv. Result-warming, disrupting planet’s delicate climate system.


                                                    56
III. Reasons for concern
    i.    more CO2 - higher temp. - bigger impact
    ii.   intergovernmental Panel on climate change estimates at lower range
          a. tiny increase in global sea levels
          b. increased water stress
          c. benefits some regions in higher latitudes
    iii. at higher range
         a. more frequent & violent droughts, floods and storms.
         b. Sea levels could rise by 88 cm by 2100.
         c. Creating an exodus of climate refugees
         d. Will affect world population
         e. Poor tropical countries worst hit
    iv. Climatic changes already underway -
        a. glacier shrinkage
        b. melting of polar ice
        c. shifts in rainfall pattern /heat waves.
IV. Solutions
    i. Reduction of CO2 emissions to half.
    ii. Stop using fossil fuels.
    iii. Use wind / solar / hydro / hydrogen energy.
    iv. Promote hybrid cars.
    v. Store CO2 underground.
    vi. Problems
         a. oil, gas and coal world’s long-established energies, cost efficient
         b. fossil-fuel lobby fighting to retain supremacy
V. U.N’s Kyoto Protocol
    i.    Proposals
          a. limiting green house gas emissions by 2012.
          b. Effective from last Feb.
    ii.   Opposed by
          a. US-considers too expensive for economy.
          b. Foot dragging by Russia
          c. Even European champions facing problems
    iii. Criticisms
         a. Timid cuts just 1-2%
         b. Non inclusion of big polluters.


                                              57
      Suggested Abbreviations (Minimum four)
      1.    yrs. - years
      2.    C - Carbon
      3.    temp - temperature
      4.    & - and
      5.    88 cm-eighty eight centimeters
      6.    Feb. - February
            (any other suitable abbreviations)

      (b)    SUMMARY
      Objective : 1) To expand notes into a summary
                      2) To test ability of expression

      Marking : Content                                                         2 marks
                      Expression                                                 1 mark

      Note : Considering the numerous facts mentioned in the notes about global
             warming, due consideration should be given to the students if they do
             not cover all the points in the summary which is expected to be concise.
             The summary should cover the essential details only.


                                 SECTION B (WRITING)                             TOTAL 30 MARKS

Q.3   POSTER: SAVING WATER                                                         TOTAL 5 MARKS
      Objective       :    To write in an appropriate style of a poster (blurbs, bullets,
                           different font size etc. may be considered)

      Marking         :    Format                                                1 mark
                           (Heading, issuing authority)
                           Content                                              3 marks
                           Expression                                           1 marks
                           (Coherence and relevance of ideas and style)

      Suggested Value Points :
                      -    Heading / slogan
                      -    Issuing authority
                      -    Why water should be saved?
                      -    How it should be saved?



                                                   58
Q.4.   FACTUAL DESCRIPTION                  LEH                               TOTAL 5 MARKS
       Objectives :      To write in an appropriate style and format of a factual
                         description.
       Marking      :    Format (heading)                                    ½ mark
                         Content                                            2½ mark
                         Expression                                          2 marks
       Suggested Value points
                   - Location
                   - Climate
                   - Popular cuisines
                   - Souvenirs
                   - Site to visit.
       Note :     The student who has used the format of a brochure should not be
                  penalized.

Q.5    LETTER OF ENQUIRY                                                      TOTAL 10 MARKS
       Objectives : To use an appropriate style to write a formal letter.
                    To plan, organize and present ideas coherently
       Marking      :    Format                                            2 marks
                         1. Sender’s address 2. date 3. address of the addressee 4.
                         salutation 5. subject 6. complimentary close 7. sender’s
                         signature/name
                         Content                                            4 marks
                       Expression                                           4 marks
                       (2 marks for Grammatical accuracy, appropriate
                       words and spellings)
                       (2 marks for Coherence and relevance of ideas
                       and style)
       Suggested value points (any 4 of the following or any other)
                   - Seeking information about the course
                   - The fee structure
                   - Date of starting the course
                   - Transport facilities
                   - Timings
                   - Faculty
                   - Any other relevant details


                                                  59
                                         Or

      LETTER TO THE EDITOR - CAPITAL PUNISHMENT
      Note : The candidate may write either in support or against this form of punishment
      Suggested value points
                  - Wisdom of retaining death penalty
                  - For      - acts as deterrent
                                  removes threat
                                  safer society
                  - Against - innocent can be killed
                                  such punishments have not
                                  reduced the crime rate.
                                  no chance of reformation
                                  any other relevant points

Q.6   ARTICLE - STATE OF ENTRANCE EXAMINATIONS
      Objective     :    To write in a style appropriate to the given situation.
                         To plan, organize and present ideas coherently.
      Marking       :    Format                                                    1 mark
                         (heading and writer’s name)
                         Content                                                   4 marks
                         Expression                                        5 marks
                         (2½ marks for Grammatical accuracy, appropriate words
                         and spellings)
                         (2½ marks for Coherence and relevance of ideas and style)
      Suggested value points
                     -   Role played by coaching institutes in the present day
                         system of education
                     -   Reasons for popularity
                     -   School education stresses theory while competitive exams stress
                         problem solving skills and application of theory - hence demand
                         growing.
                     -   Solutions - various answers
                     -   Change in examination/education pattern
                     -   Bridge gap between school education and competitive exams
                     -   Any other relevant point


                                                  60
                                        Or
      ARTICLE ----MEDIA

      Suggested Value Points
                    -   mention newspapers printing objectionable photographs of
                        female athletes / sportspersons / other women / male dominated
                        society
                    -   primary aim----to increase circulation of newspaper
                    -   less coverage to achievements and quality work done
                    -   mention effects of such irresponsible reporting on players /
                        readers
                    -   suggestions on how to deal with this problem
                    -   other relevant information

                             SECTION C (GRAMMAR)                                          15 MARKS
Q7.   REARRANGING                                                               TOTAL: 3 MARKS
      Objectives :      To be able to present ideas in grammatically logical
                        sequence                                     3 marks
      Marking       :   1 mark for every correct answer

      Answer
      1.   The equipment includes special oxygen cylinders, light warm clothing
           and waterproof tents.
      2.   Where there are no footholds, climbers have to make their way over walls of
           rock/ Climbers have to make their way over walls of rock where there are
           no footholds.
      3.   Across this dangerous path they carry their tents, instruments, food and
           everything else they may require. / They carry across this dangerous path
           their tents, instruments, food and everything else they may require.

Q8.   EDITING                                                                   TOTAL: 5 MARKS
      Objectives :       To use grammatical items appropriately

      Marking       :   ½ mark each
                        If the candidate copies the sentence and replaces the incorrect
                        word with the correct answer, marks should be awarded.
                        However, if only the correct words are given, marks are to be
                        awarded.


                                                61
            Incorrect                  Correct
       a)   ones                       one
       b)   the                        a
       c)   having                     have
       d)   important                  importance
       e)   develop                    developed
       f)   which                      who
       g)   establishing               establish
       h)   That                       this/the
       i)   into                       in
       j)   likes                      like

Q9.    FRAMING QUESTIONS                                                              TOTAL 4 MARKS
       Objectives :         to understand the context and frame relevant and appropriate
                            questions.
       Marking          :   1 mark each for every accurate question framed
       Note             :   No marks to be awarded if there is any inaccuracy. The eight
                            questions should cover at least any of the two areas specified
                            for the interview in the given question.
       Sample questions :
       a)   Which is the best TV available in the market these days?
       b)   What is the price of this TV?
       c)   What are its special features?
       d)   Is the company offering any discount on it?
       e)   Will you come and install it at home?
       f)   Can I see the different sizes of T. V. sets?
       g)   How clear is the picture on this one?
       h)   How many channels will I get on this TV?

Q10.   DIALOGUE WRITING                                                               TOTAL 3 MARKS
       Objectives :         to be able to extend a situation into a meaningful dialogue.
       Marking          :   ½ mark each for every correct dialogue provided it is accurately
                            and appropriately expressed. No marks should be
                            awarded if there is any inaccuracy. This includes inaccuracies
                            in grammar, spelling or punctuation.                    3 marks


                                                    62
       Sample Answers:
       1.   I:What are your qualifications?
       2.   Raj: I have graduated with Economics from Delhi University.
       3.   I: Why have you applied for a job in a call center?
       4.   Raj: I am very interested in the work done in a call center
       5.   I: But are you prepared to work at night and what are your salary
            expectations?
       6.   Raj: Yes I don’t mind working at night and I would expect a salary in
            four figures

                              SECTION D: LITERATURE                           TOTAL 35 MARKS
Q11.   REFERENCE TO CONTEXT                                                     TOTAL 6 MARKS
       Objective     :    to test students’ comprehension of poetry --- local, global,
                          interpretative, inferential and evaluative
       Marking       :                                                       6 marks
       Answers:
       OPTION (1) SURVIVORS
       a) Survivors                                                             ½
          Siegfried Sassoon                                                     ½
       b) The wounded soldiers / combatants                                     ½
          who have survived the war /returned from the war                      ½
       c) The war is responsible                                                ½
          They are suffering the effects of the war/haunted nights / shattered
          dreams/disillusionment / a disorder called neurasthesia (any one)     ½
       d) The non combatants / the common man / politicians / people
          who sent them to war (any one)                                         1
       e) No                                                                    ½
          This is the opinion of the noncombatants                              ½
          They are unaware of the horrors of trench warfare and mistakenly believe
          that the injured soldiers are eager to return to the battlefield       1
       OPTION (2) CURTAIN
       a) The separation/end of the relationship of the two lovers is the quiet
          disaster /                                                         1
          poetic device- unusual collocation / oxymoron / irony / metaphor
          (any one)                                                          1


                                                  63
       b)   The two lovers are the Hamlets                                                1
            They have been called so because like Hamlet they will now exist in their
            individual lonely worlds and not be able to share their grief with anyone else./
            They will talk to themselves (soliloquies) no one to hear them /
            They will always wonder whether their decision to separate was a
            wise one. (any 1 reason)                                       1
       c)   Quiet disaster-disaster cannot be quiet
            white murder-murder leads to bloodshed so it can’t be white
            murder of one kiss / Are born two ghosts- murder can’t lead to
            birth (any 2)                                                2

Q12. ANSWERS (POETRY)                                                           TOTAL 3×3=9 MARKS

       Objectives :       to test students’ comprehension of poetry - local and global

       Marking       :    Content:                                                 2 marks
                          Expression:                                               1 mark

       a)   It starts with the smell of the black bone tree.
            She has shrunk in size- her saris hang loosely / She is no longer as active as
            she used to be / Her hands are gnarled like an eagle’s / feather of a one time
            wing / (any two)
       b)   Like the flight of a bird, a good poem symbolizes freedom of thought,
            rhythm, a wholeness or unity, soaring above the mundane, lifting of spirits
            / imagination/flight of fancy / creativity (at least 3)
       c)   They are the bright sun, the wind stirring the grass, the flowing river, the
            singing of the bird and the blooming of the buds and their perfume that
            spreads all around.( 1 example each of sound, smell and sight.)
       d)   It has been personified as a young girl / woman
            She can be seen sitting either on the granary floor, sound asleep by the half
            reaped furrow, carrying grains across the brook like a gleaner, watching the
            oozing of apple juice by the cider-press, (all 4 points)

Q13.   ANSWERS (PLAY)                                                                 TOTAL 5 MARKS

       Objectives :       to test the students’ ability to comprehend plays, understand
                          character etc.

       Marking       :    Content:                                                 3 marks
                          Expression:                                              2 marks



                                                   64
       OPTION (1) ALEXANDER
       Alexander loved / respected Queen Mother
       Perdiccas had gone to Babylon to bring Queen Mother.
       Late because rivers were in flood and he did not want to risk her safety
       He was surprised to learn that Alexander was breaking camp on his way to conquer
       India.
       Felt it was too early and too cold to go to India yet.

                                           OR
       OPTION (2) MONKEY’S PAW
       -    did not believe in it but curiosity aroused
       -    forced Sergeant Morris to sell paw to him
       -    but after the first wish felt the paw turn in hand
       -    started suspecting powers of paw
       -    also felt saw faces in fire
       -    later after son’s death started believing in its powers
       -    tried to stop wife from making second wish on it
       -    finally used third wish to send his son’s spirit to rest in peace

Q14.   ANSWERS (FICTION)                                                        TOTAL 3×3=9 MARKS
       Objective      :    to test student’s ability to comprehend, interpret and evaluate
                           prose texts
       Marking:    Content:                                                       2 marks
                   Expression:                                                    1 mark

       a)   (probably) become careless about his wealth / allowed someone else to take
            it / had taken it for granted / become greedy and wanted more and more till
            it had all become too hard to keep, (any two)
       b)   The earth / life has become a rundown machine because it is full of pollution,
            is over populated and losing its natural resources due to over exploitation
            hence it is no longer in good condition / human life has become too
            mechanical and people become exhausted and have no time for leisure(not
            in harmony with nature) (any one)
       c)   The war and its effect on the people and the environment made Lisa say this.
            She thought that the soldiers were the real heroes
            It was not appropriate to make eloquent speeches in the presence of the
            dead and the dying. / felt love no longer existed


                                                    65
       d)   It refers to human ambition / motive / desire for approval and appreciation /
            recognition / from fellow men.
            becomes dangerous when one wants to be regarded as better, stronger or
            more intelligent than others / leads to unhealthy competition, (any other similar
            answer conveying the value points).

Q15.   LONG ANSWERS (FICTION)                                                                   Total 6 marks
       Objectives :        to test students’ ability to comprehend prose
                           texts globally, interpret and evaluate them
       Marking        :    Content                                                  3 marks
                           Expression                                               3 marks
       OPTION (1) JUDGEMENT OF PARIS
       Note : Marks should be awarded for the student’s creativity
       Suggested Value Points:
       -   Worried about the effect of Robichon’s speech on audience
       -   Thought of a plan to catch Robichon unaware, disguised as Marquis de
           Thevenin
       -   Wonders whether Robichon will agree to meet him after the performance
       -   Do or die situation- last chance to win Suzanne- not going to give up so
           easily
                                               OR
       OPTION (2) ROOM 10’×8'
       -   Feelings towards her own mother-in -law
       -   Has moved into new house but not excited
       -   Daughter-in-law becomes mistress of the house
       -   Resents the fact that she has got the house without lifting a finger towards its
           construction
       -   Feelings at being relegated to the room 10’×8'
                                  QUESTION PAPER CODE 212
                            EXPECTED ANSWERS/VALUE POINTS
                              SECTION A (READING) 20 MARKS
Al.    READING                          DR. ARATHI                                  TOTAL: 12 MARKS
       Objective      :    To identify and understand main parts of the text.
       Marking        :    As marked in the question paper. No penalty for mistakes of
                           spelling and grammar. Accept any other answer equivalent in
                           meaning to the answers given below.                9 marks


                                                    66
       Answers:
Al.l
       a.   She decided to have the child because Dr. Arathi told her that her sister who
            was childless would adopt the child                                         1
            and give her money for it                                                   1
       b.   Because of her feelings of attachment /mother’s love                           1
            It was tiny and dependent                                                      1
       c.   She had not expected her to say that she did not like her lecture / she was
            taken aback by Meera’s comment that life was not like that                1
       d.   Because they were too poor to treat her blindness                              1
            so they just abandoned her at the bus stop                                     1
       e.   Meera had glorified motherhood                                         1
            Manjula’s experience with her own mother had shown her that poverty
            could force a mother to forsake her child / that poverty is more powerful
            than motherhood.                                                       1

A1.2   VOCABULARY
       Objective : To deduce the opposites of words / phrases
       Marking : 1 mark each
       Answers :                                                                    3 marks
       (i) tiny
       (ii) fiction
       (iii) expensive

A.2    NOTE MAKING AND SUMMARIZING                                                    TOTAL: 8 MARKS
       Objective : To develop the skill of taking down notes
                   To develop the extracted ideas into a sustained piece of writing.
       Marking : Note making                                                       5 marks
                 Heading and indentation                                       ½ + ½ mark
                 Abbreviations / Symbols                                            1 mark
                 (with or without key,
                 minimum four)
                      Content                                                       3 marks
                      (minimum three sub headings)
       Important Instructions:
       The notes provided below are only guidelines. Any other title, main points and sub
       points should be accepted if they are indicative of the students' understanding of
       the given passage and the notes include the main points with suitable and recognizable
       abbreviations.


                                                    67
      Complete sentences should not be accepted as notes. Half a mark should
      be deducted from the total if the student writes complete sentences.
      Numbering of points can be indicated in different ways and these should be accepted
      as long as a consistent pattern.

A 2.1 Note making
      Note : if the student has attempted only the summary or only the notes,
      due credit should be given.
      Suggested Notes
      Heading - The World of Feathers (or similar heading)
      I     Features
            1. soft,
            2. splendid array of
                i. colours
                     a. crow- ebony
                     b. canary- bright yellow
                     c. parrot- green
                     d. used as cmflge
                ii. shapes
                iii. sizes
            3. light
            4. resilient
            5. strong
            6. nature’s finest marvels
      II.   Shapes and Functions
            1. flight feathers on wings straight & stiff
            2. feathers covering body overlap giving
               i. aerodynamic shape for efficient flight
               ii. snug jacket keeping out wind, water & cold
            3. tail feathers---lifting/ steering/ braking/ balanced flight
      III. Methods of Cleaning & Grooming
           1. spend large part of day in this
           2. apply oil
           3. bathe in water or dust
           4. scratch and preen to
              i. straighten feathers


                                                    68
       IV. Process of molting
           1. replacement of old feathers with new
           2. takes place one or more times a yr
           3. no. varies from 25,000-1,000
       V.   Feathers and Humans
            1. worn by tribals in
                i. Africa,
                ii. Asia,
                iii . Australia
                iv. Red Indians-headdress
            2. Greek mythology-Daedalus attached feathered wings
            3. used in
                i beddings
                ii. pillows
       VI. Composition —made of keratin
       Suggested Abbreviations:
       1. cmflge- camouflage
       2. &-and
       3. yr-year
       4. 25,000-1,000-twenty five thousand to one thousand
       5. any other

A2.2   SUMMARY
       Marking : Content                                                        2 marks
                     Expression                                                  1 mark
       Note : Considering the numerous facts mentioned in the notes about the world of
              feathers, due consideration should be given to the students if they do not
              cover all the points in the summary which is accepted to be concise. The
              summary should cover the essential details only.

                                SECTION B: WRITING                                TOTAL: 30 MARKS
Q.3.   INVITATION CARD                                                             TOTAL: 5 MARKS
       Objectives :       To write in an appropriate style for writing an invitation card
       Marking       :
                          Layout                                                  1 mark
                          (centrally aligned and placed in a box)
                          Content                                                2 marks
                          Expression                                             2 marks


                                                  69
       Suggested Value Points
       -    issuing authority- Danapur National School, Patna/Principal, Staff and
            Students
       -    event - celebrating Sports Day
       -    on the 24th of March / time / venue
       -    Mr. Rohit David-Chief Guest
       -    R.S.V.P

Q.4.   NOTICE                                                                      TOTAL: 5 MARKS
       Objective : To write in an appropriate style and format of a notice
       Marking : Format                                                           1 mark
                 (mention of the word Notice,
                 issuing authority, heading,
                 date of issue, signatory and designation)
                      Content                                                     3 marks
                      Expression                                                  1 mark
       Suggested Value Points:
       -   collection of old clothes / books /toys being organized for the poor
           children of the locality
       -   date of submission
       -   venue
       -   other relevant information

Q.5.   LETTER TO THE EDITOR                                                       TOTAL: 10 MARKS
       OPTION (1)
       Objective      :   To use an appropriate style to write a formal letter.
                          To plan, organize and present ideas coherently.
       Marking        :
                          Format                                                2 marks
                          (1. sender’s address, 2. addressee’s address,
                          3. date, 4.subject, 5. salutation, 6.complimentary close
                          7. sender’s signature / name)
                          Content                                                 4 marks
                          Expression                                              4 marks
                          (2 marks for fluency 2 marks for accuracy)


                                                  70
      Suggested Value Points
      -    mention newspapers printing objectionable photographs of female
           athletes / sportspersons / other women / male dominated society
      -    primary aim --- to increase circulation of newspaper
      -    less coverage to achievements and quality work done
      -    mention effects of such irresponsible reporting on players / readers
      -    suggestions on how to deal with this problem
      -    other relevant information
      OPTION (2)
      COMPLAINT LETTER                                                        TOTAL: 10 MARKS
      Objectives :      To use an appropriate style to write a formal letter. To plan,
                        organize and present ideas coherently.
      Marking       :
                        Format                                                 2 marks
                        (1. sender’s address, 2. addressee’s address,
                        3. date, 4.subject, 5. salutation, 6. complimentary close,
                        7. sender’s signature / name)
                        Content                                              4 marks
                        Expression                                           4 marks
                        (2 marks for fluency; 2 marks for accuracy)
      Suggested Value Points
      -   recently bought a new colour TV
      -   receipt number / date of purchase- warranty
      -   upset because the set is not functioning properly-defects
      -   asking for a replacement of the set

Q6.   ARTICLE--- SAVING ENDANGERED ANIMALS                                    TOTAL: 10 MARKS
      OPTION (1)
      Objective :       To write in an appropriate style required for an article
                        To plan / organize and present ideas coherently.
                        To transcode / analyse given information and arrive at
                        conclusions.
      Marking       :
                        Format: Title and writer’s name                       1 mark
                        Content: Credit should be given for the              4 marks
                        candidate’s creativity in presenting
                        his / her ideas. However, the points given
                        below may be included.


                                                71
Expression :                                                            5 marks
                     Fluency (2½ marks)
                     Accuracy (2½ marks)
Suggested Value Points:
-    both people and tigers should coexist
-    consequences of meddling --- if one destroyed, other will be affected too
-    protection of interests of people living in tiger reserves
-    suggestions on how to conserve environment and save the animals
     especially endangered

                                   OR
OPTION (2)
SPEECH --- CAPITAL PUNISHMENT                               TOTAL: 10 MARKS

Objective : To write in an appropriate style required for a speech
            To plan / organize and present ideas coherently.
            To transcode / analyse given information and arrive at
            conclusions.
Marking :
               Format: Introduction of speech and appropriate ending.             1 mark
               Content: Credit should be given for the candidate’s
               creativity in presenting his/her ideas. However, the
               points given below may be included                                 4 marks
Expression:                                                                       5 marks
               Fluency (2½ marks)
               Accuracy (2½ marks)
Suggested Value Points
-    wisdom of retaining death penalty
-    either in support or against this form of punishment
-    for --- acts as deterrent
-    removes threat
-    safer society
-    against --- innocent can be killed
-    killing not affected crime rate
-    no chance of reformation



                                             72
                               SECTION C: GRAMMAR                                 TOTAL: 15 MARKS

Q7.   REARRANGING                                                                 TOTAL: 3 MARKS
      Objectives :         To be able to present ideas in grammatically logical
                           sequence.
      Marking          :   For every correct answer.                          ½ mark
                           Award marks to the answer written in point form or
                           paragraph
      Answer
      a)   Farmers have been faced with the problem of bringing water to
           dry lands from the earliest times.
      b)   When men started farming crops in the Nile Valley in Egypt, they seemed to
           have perfect conditions for farming.
      c)   But the Nile did not flow evenly throughout the year.
      d)   In summer it caused great floods, washing away precious soil.
      e)   While in winter the fields were dry and dusty and there was no water.
      f)   Therefore the Egyptians learnt how to control water and irrigate their lands

Q8.   EDITING                                                                     TOTAL: 5 MARKS
      Objectives :         to use grammatical items appropriately
      Marking          :   ½ mark each                                     Total 5 marks
      Note: If the candidate copies the sentence and replaces the incorrect word with
            the correct answer / writes only the corrected words, marks should be
            awarded.

           Incorrect                  Correct
      a)   in                         on
      b)   would                      can/might
      c)   are                        is
      d)   was                        is
      e)   who                        which/that
      f)   it’s                       its
      g)   feather                    feathers
      h)   or                         and
      i)   the / great                a / greatest
      j)   in                         with


                                                     73
Q9.    FRAMING QUESTIONS                                                           TOTAL: 4 MARKS
       Objectives :       to understand the context and frame relevant and appropriate
                          question
       Marking        :   1 mark each for every accurate question framed
       Note: No marks to be awarded if there is any inaccuracy. The eight questions
             should cover at least any of the two areas specified for the interview in the
             given question.
       Sample Questions:
       a) What kind of families do they have?
       b) How do they spend their weekends?
       c) What kind of entertainment do they have?
       d) What kind of lifestyle do they have?
       e) What kind of food do they enjoy?
       f) How often do they travel?
       g) What kind of clothes do they wear?
       h) Do they spend a lot of time with their friends?

Q10.   DIALOGUE WRITING                                                            TOTAL: 3 MARKS
       Objectives :       To be able to extend a situation into a meaningful dialogue.
       Marking        :   ½ mark each for every correct dialogue provided it is accurately
                          and appropriately expressed. No mark should be awarded if
                          there is any inaccuracy.
                     This includes inaccuracies in grammar, spelling or
                     punctuation.                               3 marks
       Sample Answers :
       Shyam    : Good morning sir, I am Shyam.
       Principal : Good morning Mr.Shyam, I see you are interested in joining the school
                   as a PT teacher. What are your qualifications?
       Shyam    : I have obtained a Masters degree in Physical Education, Sir.
       Principal : Have you worked in any other school?
       Shyam    : Yes Sir, I have an experience of about 12 years, out of which six years
                  were at a boarding school.
       Principal : Have you specialized in any particular game?
       Shyam    : Yes, I have played basketball at the national level.
       Principal : Have you won any prizes?
       Shyam    : Yes, I was adjudged the best young basketball player in college and
                  was a member of the national team for five years.


                                                   74
                               SECTION D: LITERATURE                                 TOTAL: 35 MARKS

Q11.   REFERENCE TO CONTEXT                                                                      6 MARKS
       Objective      :    To test students’ comprehension of poetry--- local, global,
                           interpretative, inferential and evaluative
       Marking        :    6 marks
       Answers        :
       OPTION (1) OF MOTHER’S, AMONG OTHER THINGS
       a) Of Mother’s, Among Other Things; AK Ramanujan                      ½+½
       b) It refers to the old mother.                                             1
       c) It refers to the silk clothes and white flowers that the mother wore in her
          youth                                                                    1
          as also the softness of the young mother’s skin                          1
       a) The wrinkled hands, the crippled fingers, the loss of mobility, reduced in
          size --- feather of a one time wing                              ½×4=2
                                            Or
       OPTION (2) ODE TO AUTUMN
       a)   Ode to Autumn; John Keats                                                ½+½
       b)   Autumn                                                                         1
       c)   The sounds that can be heard during autumn; the wailful mourn of the
            gnats; loud bleating of the lambs; singing of the cricket; the whistling of
            the red breasts; and the twittering of the swallows. (any 2)               1+1
       d)   It refers to the plains that have been freshly harvested                       1
       e)   The picture of the end of a day / of freshly cut fields, that is coloured by the
            light of the soft glow of the setting sun.                                     1

Q12. ANSWERS (POETRY)                                                            TOTAL 3×3=9 MARKS
       Objectives :        To test students’ comprehension of poetry - local and global
       Marking        :
                           Content:                                                  2 marks
                           Expression:                                                1 mark
       a)   Through the bird’s captivity, the poem conveys the feelings of those in bondage
            / the oppressed Afro-Americans, and the poet’s empathy for them and his
            understanding and total identification with the pain and suffering of such people.
       b)   Curtain-symbol of separation
            Poem talks about two lovers parting ways


                                                    75
       c)   The father sells cabbage nets while the mother sells lace; She has to wait
            because the man she loves is an apprentice and cannot marry before seven
            years / he is under contract for seven years.
       d)   A good poem is symbolic and suggestive; it uses concrete objects to
            convey abstract thoughts; it conveys feelings; (any other 3 similar points
            from the poem)
Q13.   ANSWERS (PLAY)                                                               TOTAL: 5 MARKS
       Objectives :        To test the students’ ability to comprehend plays, understand
                           character etc.
       Marking        :
                           Content:                                               3 marks
                           Expression:                                            2 marks
       OPTION (1) ALEXANDER
       Alexander’s character
       -    He is an adventurer- loves conquering lands- ambitious, brave
       -    He is restless, needs action / is happy when he is doing rather than thinking,
            wants to be remembered for what he does and not for what he is
       -    He is sensitive, emotional, impulsive---winning Queen mother’s approval
            is important / throws away Parmenion’s locket
       -    He leads by example---burns his throne and his own belongings before
            expecting his soldiers to follow his orders
       -    Or any other relevant points substantiated with examples from the text
                                          OR
       OPTION (2) MONKEY’S PAW
       They get the paw from Sergeant Morris, a family friend. Initial reaction skeptical /
       curious---later on lose their son --- hence not happy

Q14.   ANSWERS (FICTION)                                                       TOTAL 3×3=9 MARKS
       Objective      :    To test students’ ability to comprehend, interpret and evaluate
                           prose texts
       Marking        :
                          Content:                                           2 marks
                          Expression:                                         1 mark
       (a) -     When Suzanne lays the condition of her marriage.
           -     Says she would marry the one who is judged to be the better actor of
                 the two by the people of Paris.
            -    The two actors equally good, hence it would be impossible to decide
                 the contest.


                                                   76
       (b) According to Einstein true education should aim at
            -    training independently acting,
            -    and thinking individuals, who see in
            -    the service of the community their highest goal,
       (c) -     Officers appointed by Asoka to help the spread of law of piety,
            -    they had to ensure the welfare and happiness of the people
            -    as also the people living on the borders and other nations.
            -    to prevent wrongful imprisonment and help those in need
       (d) -     Mr. Malik had been transferred to Delhi
            -    had a plot of land, so decided to build house.
            -    to prevent disturbance in studies of children caused by regular transfers.

Q15.   LONG ANSWERS (FICTION)                                                       TOTAL: 6 MARKS
       Objectives :       To test students’ ability to comprehend prose texts globally,
                          interpret and evaluate them.
       Marking       :
                          Content                                                 3 marks
                          Expression                                              3 marks
       OPTION (1) THE ACTRESS
       Suggested Value Points :
       -   passionate about acting but something lacking
       -    Experiences at the front
       -    Audience reaction from mechanical to wild
       -    Loss of Doronin
       -    change from earlier performances--- pain made her understand the emotions
            that she was enacting
       -    transformed into a great actress

       OPTION (2) GRIEF
       Suggested Value Points:
       -    Missing daughter
       -    People in city cold and emotionless
       -    Tried sharing grief with passengers (give 2 examples)-but they did not listen
       -    Missing son
       -    Grief unbearable, finally unburdened to horse


                                                   77
                                         MATHEMATICS

Time allowed : 3 hours                                                      Maximum Marks : 100

     General Instructions :
     (i)   The question paper consists of three sections A, B and C. Section A is compulsory for
           all students. In addition to Section A, every student has to attempt either Section B
           OR Section C.
     (ii) For Section A
          Question numbers 1 to 8 are of 3 marks each.
          Question numbers 9 to 15 are of 4 marks each.
          Question numbers 16 to 18 are of 6 marks each.
     (iii) For Section B/Section C
           Question numbers 19 to 22 are of 3 marks each.
           Question numbers 23 to 25 are of 4 marks each.
           Question number 26 is of 6 marks.
     (iv) All questions are compulsory.
     (v) Internal choices have been provided in some questions. You have to attempt only one
         of the choices in such questions.
     (vi) Use of calculator is not permitted. However, you may ask for logarithmic and statistical
          tables, if required.


                                  QUESTION PAPER CODE 65/1/1
                                             SECTION — A
1.         Express the following matrix as the sum of a symmertic and a skew symmetric
           matrix :




2.         Using properties of determinants, prove the following :




                                                    78
3.   Solve the following differential equation :




4.   Form the differential equation of the family of curves y = a sin (x + b),
     where a and b are arbitrary constants.

                                           OR

     Solve the following differential equation :



5.   Evaluate :




6.   Evaluate :




7.   Two dice are rolled once. Find the probability that :
     (i)    the numbers on two dice are different
     (ii)   the total of numbers on the two dice is at least 4

8.   A pair of dice is tossed twice. If the random variable X is defined as the number
     of doublets, find the probability distribution of X.

9.   Examine the validity of the following argument :


                      OR

     Construct an input/output table of the following circuit :




                                                   79
10.   Differentiate sin (2x + 3) w.r.t. x from first principle.


11.   If                        , find

12.   Evaluate :




                      OR
      Evaluate :




13.   Evaluate :




14.   Evaluate :




15.   Verify Rolle's Theorem for the following function :



16.   Using matrices, solve the following system of equations :
                                         and

17.   Find the point on the curve             which is nearest to the point        .

                                         OR

      Prove that the height of a right circular cylinder of maximum volume that can be

      inscribed in a sphere of radius R is      . Also find the maximum volume.



                                                 80
18.   Find the area of the region bounded by                           and x-axis in the
      first quadrant.
                      OR

      Evaluate                   as limit of a sum.

                                 SECTION — B

19.   If                                           show that              and

      are perpendicular to each other.

20.   Using vectors prove that the line segment joining the mid-points of non-parallel
      sides of a trapezium is parallel to the base and is equal to half the sum of the
      parallel sides.

21.   A body, moving with a velocity of 36 km/hour, is brought to rest in 10 seconds.
      Find the retardation and the distance travelled by the body before coming to
      rest.

22.   A particle is projected so as to graze the tops of two walls, each of height
      10 m at 15 m and 45 m respectively from the point of projection. Find the angle
      of projection.
                                         OR
      P, Q, R, S are points in a vertical line so that P is the highest and
      PQ = QR= RS. If a body falls from rest at P, prove that the times of describing
      the successive intervals are in the ratio                    .

23.   ABC is a given triangle in which forces       and act along OA, OB and
      OC, where O is the incentre of the triangle, are in equilibrium. Prove that




24.   Two like parallel forces    and     act on a rigid body at A and B respectively.
      If   and      are interchanged in position, show that the point of application

      of the resultant will be displaced through a distance



                                                  81
25.   Find the equation of the plane passing through the points (1, 2, 3) and

      and parallel to the line

                                              OR
      Find the vector and cartesian equations of the sphere described on the join of
      the points            and              as the extremities of a diameter.

26.   The vector equations of two lines are :

                                        and
      Find the shortest distance between the above lines.

                                 SECTION — C

19.   In a factory, which manufactures nuts, machines A, B and C manufacture
      respectively 25%, 35% and 40% of nuts. Of their outputs, 5, 4 and 2 per cent
      respectively are defective nuts. A nut is drawn at random from the product
      and is found to be defective. Find the probability that it is manufactured by
      machine B.

20.   If the mean and variance of a binomial distribution are respectively 9 and 6, find
      the distribution.
                                        OR
      8% of people in a group are left handed. What is the probability that 2 or more
      of a random sample of 25 from the group are left handed ?
      [Use              ]

21.   What is the face value of a bill discounted at 5% per annum 73 days earlier than
      its legal due date, the banker's gain being Rs. 10 ?

22.   A bill for Rs. 21,900, drawn on July 10, 2005 for 6 months, was discounted
      for Rs. 21,720 at 5% per annum. On what date was the bill discounted ?

23.   A and B are partners sharing profits and losses in the ratio 3 : 4 respectively.
      They admit C as a new partner, the new profit sharing ratio being 2 : 2 : 3
      between A, B and C respectively. C pays Rs. 12,000 as premium for goodwill.
      Find the amount of premium shared by A and B.

24.   Find the present worth of an ordinary annuity of Rs. 1,200 per annum for 10
      years at 12% per annum, compounded annually.


                                                   82
25.   If the total cost function is given by C = a + bx + cx2 where x is the quantity
      of output, show that



      where MC and AC are marginal and average costs respectively.
                                        OR

      If the marginal revenue function for a commodity is MR                    find the
      total revenue function and the corresponding demand function.
26.   A dealer wishes to purchase a number of fans and sewing machines. He has
      only Rs. 5,760 to invest and has space for at most 20 items. A fan and sewing
      machine cost Rs. 360 and Rs. 240 respectively. He can sell a fan at a profit
      of Rs. 22 and sewing machine at a profit of Rs. 18. Assuming that he can sell
      whatever he buys, how should he invest his money in order to maximise his
      profit ? Translate the problem into LPP and solve it graphically.


                                QUESTION PAPER CODE 65/1
                                          SECTION ‘A’



1.    Express the matrix                       as the sum of a symmetric and skew


      symmetric matrix.
2.    Using properties of determinants, prove the following :




3.    Solve the following differential equation :




4.    Verify that                       is a solution of the differential equation




                                                    83
                        OR
      Solve the following differential equation :


5.    Evaluate :




                   OR
      Evaluate :




6.    Evaluate :




7.    Two cards are drawn successively with replacement from a well shuffled pack of
      52 cards. Find the probability distribution of number of jacks.

8.    A and B toss a coin alternately till one of them gets a head and wins the game. If A
      starts first, find the probability that B will win the game.

9.    Show that the following argument is invalid :


                        OR
      Construct an input/output table for the following circuit :




10.   Evaluate :




11.   Differentiate           w.r.t. x from first principles.


                                                    84
12.   If                  show that

                             OR


      If                               , find



13.   Prove that


      Hence, evaluate


14.   Evaluate :



15.   Find the intervals in which the function                                  is (a)
      increasing, (b) decreasing.

16.   Using matrices, solve the following system of equations :




17.   An open box, with a square base, is to be made out of a given quantity of metal

      sheet of area   . Show that the maximum volume of the box is

                                       OR

      A window is in the form of a rectangle surmounted by a semi-circle. If the total
      perimeter of the window is 30 m, find the dimensions of the window so that
      maximum light is admitted.

18.   Find the area of the region bounded by the parabola                and the line


                                      OR

      Evaluate                   as limit of sums.



                                                85
                                   SECTION B

19.   Find the angle between the vectors         and         if                     and



20.   Using vectors, prove that in a ∆ ABC,



      Where a, b and c are lengths of the sides opposite, respectively, to the angles
      A, B and C of ABC.

21.   Find the coordinates of the point where the line




      meets the plane x + y + 4z = 6.

22.   Find the image of the point (1, 2, 3) in the plane x + 2y + 4z = 38.


23.   Find the radius of the circular section of the sphere              by the plane



24.   The resultant of two forces      and     acting at an angle     is equal to

                          and when they act at a angle            the resultant is equal

      to                     Show that




25.   A body of mass 10 kg hangs by a string from a fixed point. The string is drawn
      out of the vertical by applying a force 49 N to the body. In which direction
      should this force be applied in order that, in equilibrium, the deflection of the
      string from the vertical may be 30° ? Also find the tension in the string.

26.   A particle is projected so as a graze the tops of two walls, each of height 10
      m, at distance 15 m and 45 m respectively from the point of projection. Find
      the angle of projection.



                                                 86
                                   SECTION C
19.   In a bolt factory, machines A, B, C manufacture 25%, 35% and 40% respectively
      of the total bolts. Of their output 5%, 4% and 2% respectively are defective
      bolts. A bolts is drawn at random and is found to be defective. Find the
      probability that it is manufactured by machine B.

20.   The mean and variance of the binomial distribution are 4 and       respectively.
      Find the distribution and

21.   The banker's discount and banker's gain on a certain bill of exchange, due after
      a certain time, are respectively Rs. 1,250 and Rs. 50. Find the face value of
      the bill.
22.   A bill for Rs. 5,050 is drawn on April 13,2005. It is discounted on July 4, 2005
      at 5% per annum. If the banker's gain in the transaction is Rs. 0.50, find the
      nominal date of maturity of the bill.

23.   A machine costs a company Rs. 5,75,000 and its effective life is estimated
      to be 20 years. A sinking fund is created for replacing the machine at the end
      of its life-time when its scrap realises a sum of Rs. 75,000 only. Calculate
      what amount should be provided every year out of profits, for the sinking
      fund if it accumulates an interest of 5% per annum, compounded
      annually. [Use                   ]

24.   A and B are partners sharing profits and losses in the ratio 5:3. C pays

      Rs. 96,000 as premium for the goodwill of the business and is admitted for    th
      share. Show how this amount will be shared by A and B, assuming that the
      share of C is contributed by A and B in their profit sharing ratio. Find also the
      new profit sharing ratio.

25.   The manufacturing cost of an item consists of Rs. 900 as overheads, the mateiral

      costs Rs. 3 per item and labour cost is Rs.        for x items produced. How

      many items must be produced to have minimum average cost ?

26.   David wants to invest at most Rs. 12,000 in Bonds A and B. According to the
      rule, he has to invest at least Rs. 2,000 in Bond A and at least Rs. 4,000 in
      Bond B. If the rates of interest on Bonds A and B respectively are 8% and 10%
      per annum, formulate the problem as L.P.P. and solve it graphically for maximum
      interest. Also determine the maximum interest received in a year.



                                                 87
                      Marking Scheme ---- Mathematics


General Instructions :



1.   The Marking Scheme provides general guidelines to reduce subjectivity in the marking. The

     answers given in the Marking Scheme are suggested answers. The content is thus indicative.

     If a student has given any other answer which is different from the one given in the Marking

     Scheme, but conveys the meaning, such answers should be given full weightage.



2.   Evaluation is to be done as per instructions provided in the marking scheme. It should not

     be done according to one's own interpretation or any other consideration __ Marking

     Scheme should be strictly adhered to and religiously followed.



3.   Alternative methods are accepted. Proportional marks are to be awarded.



4.   Marks may not be deducted in questions on integration if constant of integration is not

     written.



5.   In question(s) on differential equations, constant of integration has to be written.



6.   If a candidate has attempted a question twice, marks obtained in the question attempted

     first should be retained and the other answer should be scored out.



7.   A full scale of marks - 0 to 100 has to be used. Please do not hesitate to award full

     marks if the answer deserves it.




                                               88
        QUESTION PAPER CODE 65/1/1

     EXPECTED ANSWERS/VALUE POINTS

               SECTION ‘A’




1.                                                      1m




                                                        1m




                                                        ½m




                             First is symmetric and
                             the other skew-symmetric   ½m




2.




                                                        1m




                    89
                                                     ½m




                                                     ½m




                                                     1m




3.   Integrating factor                              1m



     The solution of differential equation is


                                                     1m


                                                     1m

4.


                                                     1m


                                                     1m


                                                     1m


     OR




                                                90
                       Let        ½m




                                  ½m




                                  ½m




Intergrating, we get


                                  ½m




or                                ½m


or



                                  ½m



                             91
5.                                                                  1½ m




                                                                    1½ m



6.   I                                                               1m



                                                                    ½m


                                                                    ½m


                                                                     1m




7.   (i)    P(Numbers on two dice are different)                    1½ m


     (ii)   P (Total of numbers on two dice is atleast 4)           1½ m


8.   Let x denote the number of doublets. Possible doublets are
                   (1, 1), (2, 2), (3, 3), (4, 4), (5, 5), (6, 6)

     Clearly X can take values 0, 1, 2

     Probability of

            (i)    getting a doublet                                 1m


            (ii)   not getting a doublet


     P(X = 0) = P (no doublets)                                     ½m



                                                     92
     P (X = 1) = P (one doublet and one not doublet)                                               ½m



     P ( X = 2) = P (both doublets)                                                                ½m

          Required probability distribution is

             X           0              1           2


             P(X)                                                                                  ½m




9.   The truth table for the problem is given below :
                                 Hypotheses             Conclusion
         p           q                         ~p          ~q                    Correct
         T           T            T            F            F                    Truth Table : .. 2½ m
         T           F            T            F            T
         F           T            T            T            F          Critical Row                 1m
         F           F            F            T            T

     Conclusion shows F in the only critical row. Hence the given
     argument is invalid                                                                            ½m

     OR

     The input / output table for the given circuit is given below :

                     Input            Output
                 p           q          s                                        Input ........   1+1 m
                 1           1          1                                        Output .....       2m
                 1           0          1
                 0           1          0
                 0           0          1




                                                    93
10.



                                                               1m

                                                               1m

                                                               1m


                                                               1m


11.                             ............ (i)

      Taking log of both sides of (i), we get

                                                               1m


                                                               2m


                                                               1m




12.



                                                               1m



                                                               1m


                                                        (1+1) = 2 m



                                                   94
      OR




           Using               ½m




                               ½m




                               1m




                        (1+1) = 2 m




13.                            ½m




                               ½m




                        (1+1) = 2 m



                               1m




                   95
14.                                                                                             1m




                                                                                                1m




                                                                                         (1+1) = 2 m




15.

      The function f(x) is differentiable on [1, 2] and so it is continuous on [1, 2].
      Also f (1) = f (2) = 0                                                                  1½ m
          All conditions of Rolle's Theorem are satisfied


                                                                                                1m

                                                                                                1m


                              the Rolle's theorem is verified                                  ½m


16.   The system of equations can be written as




            AX = B,      where                                                                  1m



            or

                                                                                                1m



                                                   96
                          (one mark for every four correct elements)           2m




                                                                              ½m




                                                                              1½ m




17.   Let the point be    . Let its distance from      be d                    1m
                                             ∴




                                                                               1m



                                                                               1m




                                                                               1m




      When                                                                     1m

           The point is     whose distance from the point        is minimum    1m



                                            97
     OR
                           Figure           1m


                           In right



                                             ½




V= Volume of cylinder                      1½ m




                                            1m



                                            1m



Showing      is negative   maximum




Maximum Volume




                                            1m




                                      98
18.                          Figure                                        1m
                             The required area of shaded region ABCD is


                                                                          1½ m




                                                                          1½ m




                                                                           1m


                                                 Square units              1m


                        OR



      We have to find        as limit of a sum


                                                                          ½m


                                                                           1m


                                                                           1m



                                                                           1m



                                                                          1½ m



                                                                           1m



                                  99
                                            SECTION ‘B’


19.                                                                                                 1m


      For                            to be perpendicular                                           ½m


                                                                                                    1m



                                                                                                   ½m




20.                                           Let         and    be the position vectors of
                                              A, B and C respectively w.r.t. O. Let D and          ½m
                                              E be the mid-points of parallel sides OC and
                                              AB respectively.


                                     Positon vector of




                                                                                              (½+½)=1 m




                                                                                                   ½m




                                                                                                    1m
              is parallel to base and its length is half the sum of lengths of the
            parallel sides.



                                                    100
21.   Intial velocity (u) = 36 km/hour = 10 m/sec.
                                                                                                   ½m
      Final velocity (v) = 0

            t = 10 seconds, let a be the accelration

      Using v = u + at, we get

                                                                                                   1m

      i.e., the retardation is 1 m/sec2

      Let s be the distance travelled before coming to rest

            Using                  we get                                                           ½

                                                                                                   1m


22.                                         Let u be the initial velocity, the angle of
                                            projection with the horizontal
                                                 Equation of path is


                                                                                                   ½m

                                            As A and B lie on the curve.


                                                                              ........... (i)

                                                                                                ½+½=1m
                                                                              .......... (ii)

      From (i) and (ii)


                                                                                                   ½m



                                                                                                   1m

      or




                                                 101
                                                  OR

                                      Figure                                                 ½m

                                      As the body starts from rest at P, u = 0. Let    ,
                                      and      be the times taken to travel from P to Q, P
                                      to R and P to S


                                                                                             ½m



                                                                                             ½m



                                                                                             ½m



      Time taken from Q to R



      Time taken from R to S                                                                 ½m

      Ratio of times taken to travel successive intervals is

                                                                                             ½m



23.                                   Figure                                                 ½m


                                      Let O be the centre of the circle and




                                                                                             1m




                                                  102
                                    Similarly,                                      1m

                                    Applying Lami's Theorem, we get


                                                                                    1m




                                                                                    ½m




24.                                       Let the forces    and    act at A and B
                                          respectively. Let C be the point from
                                          where resultant passes


                                                                                    1m



                                                                                    ½m


      When the forces are interchanged in position, let ′ be the point from where   ½m
      resultant passes, then


                                                                                    1m



           As P>Q, we get                                                           1m




                                                 103
25.   The equation of the plane passing through the point (1, 2, 3) is

                                                                                          1m

      It passes through

                                                                 ................. (i)    1m


      The plane is parallel to the line


            It is    to normal to the plane

                              .................................................... (ii)   1m

      From (i) and (ii), we get


                                                                                          ½m

            Equation of plane is

                                                                                          ½m




                                                          OR

      Equation of sphere with extremities of diameters as



                                                                                          1m

                                                                                          1m


                                                                                          1m

                    Vector equation of sphere is


                                                                                          1m



                                                          104
26.   Here
                                                         1m



                                                         1m




                                                         1m



                                                         1m

             Shortest distance d is given by



                                                         1m



                                                         1m


                                           SECTION ‘C’

19.   Let the events     ,    ,    and E be as follows
         : the nut is manufactured by machine A
         : the nut is manufactured by machine B          ½m
         : the nut is manufactured by machine C
      E : the nut manufactured is defective


                                                         1m


                                                         ½m


                                                         1m


                                                  105
20.   Here Mean = np = 9 and variance = npq = 6                                              1m




                                                                                             1m
      Again np = 9

                                                                                             1m

             OR

      Here                                                                                   1m

      Required probability                                                                  ½m
                                                                                            ½m


                                                                                             1m



21.   Here                                                                             (½+½)=1 m




                                                                                            ½m


                                                                                            1m
             Face value of bill = Rs 101000                                                 ½m

22.   Bankers Discount                                                                      ½m
      Let the time be t years, r = 5%

      then B.D.= srt                                                                         1m

      Legal due date = 13 January
      The bill is withdrawn 60 days before 13 January                                       ½m
      Counted back, we get
                                                                                             1m

                                        Bill was discounted on 14 Nov. of same year.


                                               106
23.   Profit sharing ratio of A and B initially = 3 : 4

                                                                   ½m

      Profit sharing ratio after joining of C = 2 : 2 : 3

                                                                   ½m


             Sacrificing ratio of A and B                          1m


                                            = 1: 2

             Share of A in premium = Rs 4000                (1+1) = 2 m

             Share of B in premium = Rs 8000


24.   We have


      Here         R = 1200, n = 10, r = 0.12                      1m


                                                                 1½ m


                                                                   1m

             Present value of ordinary annuity is Rs 6779          ½m

25.


                                                                   ½m


                                                                   1m

                                                                   1m


                                                            (½+1)=1½ m




                                                     107
                 OR




                                                                                               ½m

                                                                                                1m




                                                                                               1½ m


          Demand function                                                                       1m



26.   Profit function P = 22 x +18 y, where x is the number                                     1m
      of fans sold and y the number of sewing machines sold.
      Constraints are                                                                           2m

                                                 ∴

                                          Graphing of problem and getting
                                                                                               1½ m
                                          feasible region as (0, 0), (16, 0) (8, 12) (0, 20)



                                                                                                1m


                                              P is maximum for 8 fans and 12 sewing
                                          machines.                                            ½m




                                               108
                             QUESTION PAPER CODE 65/1
                         EXPECTED ANSWERS/VALUE POINTS
                                       SECTION - A


1.   Writing       =                                                                     1




     ∴      (A +        )=                     =                                         1




          (A _     )=                      =                                             ½




     ∴A =                    =                     +                                     ½



           The first matrix is symmetric and second is skew symmetric.



2.   C1      C1 + C2 + C3 , ∆ =                              = (a + b + c)               1




                        ∆ = (a + b + c)                                                  1
     R2     R2 _ R 1
     R3     R _R
               3    1

     Expanding to get ∆ = (a + b + c) (3ab + 3bc + 3ca) = 3 (a + b + c) (ab + bc + ca)   1


                                            109
3.   Given equation can be written as

           + cot x. y = cos x. sin x       ∴ Integrating factor =                   = sin x   ½ +½ = 1


     ∴      y. sin x =                                                                              1


     ⇒      y. sin x =            +c       or   y=            sin2 x + c. cosec x                   1



4.         = _ A sin x _ B cos x                                                                    1


     ∴            = _ A cos x + B sin x                                                             1


     ∴            = _ (A cos x _ B sin x) = _ y                 ∴           +y=0                    1


     ∴      y = A cos x - B sin x is the solution of given differential equation


                                                    OR


     Writing             =             =                                                            ½


     Putting        =v       ⇒ v+x              =                   ⇒ x       = _                   1


     ∴                       =_        ⇒                                     dv = _                 ½


     ∴      2 log v + 3 log (v _ 2) + 3 log (v + 2) + 8 log x = log c                               ½

     ⇒      v2 (v2 _ 4) x8 = c ⇒ y2 (y2 _ 4x2) = c
                         3                                3
                                                                                                    ½



5.   I =                                                                                          1+1


                                                                                                    1



                                                    110
                                      OR



     I =                                              1½




                                                      1½



6.                                                    1+1


                                                        1


7.                                                      1


     Number of Jacks (X) :        0         1.   2.


     P(X)                :                            1½


                                                       ½



8.   P (Head)          P (Tail)                         1

     P (B wins)
                                                        1




                                                        1




                                      111
9.    The truth table for the hypothesis and conclusion is:




                                                                      For correct truth table    2½


                                                  Critical row        For critical row             1




      There is only one critical row in which the conclusion is false ⇒ Argument is invalid       ½

                                               OR


                                                              First two colums                  ½+½
                                                              For s = p v (~ q)                    1


                                                              Correct Output                       2




10.                                                                                                1




                                                                                                 1+1



                                                                                                   1



                                              112
11.                         1


                            1


                            1




                            1




12.   Getting              1½


            ∴               1


                           1½


                OR


      Put                   1




                            1




                            1




                            1



                     113
13.    RHS =                                                                                                  1


                 =                      = LHS                                                                 1



       I =                                                    ..................... (i)                       ½


             =                                                                                 ....... (ii)   ½


       ⇒ 2I =                                                                                                 ½


       ⇒ I = π/4                                                                                              ½



14.   I =                 Put tan θ = x2 ∴ sec2θ dθ = 2x dx ⇒ dθ =                        dx                  ½

                                                ÿ       θ θ

        =             =             +               =                       +                       = I1+ I2 ½



      I1 =                    =                     =                    where             = t                ½



                                                                                                              1



      I2 =                    =                     =                    where x +         = z


                                                                                                              1



       ∴         I=                     +                                                                     ½



                                            114
15.                                                                                                 1




      ∴ Possible intervals are                                                                      1


            Since       (x) > 0 in


              ∴ f (x) is increasing in                                                              1


      And         (x) < 0 in (2, 6)           ∴ f (x) is decreasing in (2, 6)                       1



16.   Writing the system of equations as



                                          =         i.e AX = B     ∴ X = A-1B                       1



      |A| = 3 (_1) + 1 (_5) +1 (4) = _3 _ 5 + 4 = _ 4 ≠ 0                                           1

      a11 =       _1,     a12 =      5,   a13 =      4,

      a21 = 0,          a22 = _ 4,        a23 = _ 4        (1 Mark for any 4 correct co-factors)    2

      a31 =       _1,     a32 = _ 7,          a33 = _ 4,




             A1=_
              _
      ∴                                                                                            ½




                    = _                                              =



      ∴      x = 1, y = _1, x = 1                                                                  1½


                                                     115
17.   Let the dimensions of box be ÿ = x, b = x, h = y

      ∴    Surface area = x2 + 4xy = c2 .................. (i)                                                 1


      Volume                                                                                                 1½



                                                                                                            1+ ½


                               , i.e. negative.                  will give maximum volume.                     1


      ∴ Maximum Volume =              x (c2 _ x2) =                          =                cubic units      1


                                                  OR


                           Let the dimensions of window be x, y.

                           ∴     Perimeter = x + 2y + π          = 30 m. ......... (i)                         1


                                    Area A = xy +          π       ................... (ii)                    1


      From (i),                                                                                                1


                                                                                                               1


                                              y=                                                              ½


                      , i.e. negative


      ∴   x=          will give Maximum area (i.e. Max. light)                                                 1

      ∴ Dimensions of window for maximum light will be

                       ,          with radius =                                                               ½



                                                  116
18.                     Correct Figure                                       1

                        Points of intersection of two curves

                        are x = − 1, x = 2.                                  1



          ∴ Required area =                                                  1


                         =                    −                            1½



                         =                                     sq. Units   1½



                                OR




                                                                           1+½


      =                                                                      1


      =                                                                      1


      =                                                                      1



      =                                                                     ½




      =                                                                      1




                          117
                                           SECTION B


19.   Let                                                                                        1



                                                                                                 1



                                                                                                 1


20.                       Let in ∆ ABC,

                                                                                                 ½

                                                                      ................... (i)    ½

                 and                                                  ................... (ii)   ½



                                                                                                 1



                                                                                                 ½




21.                                                                                              1


      If the line meets the plane, then this point must satisfy the equation

      of plane for some value of λ

        (2λ−1) + (3λ−2) + 4 (4λ−3) = 6                λ=1                                        1

        Coordinates of required point are (1, 1, 1)                                              1


                                                118
22.                      Let P′(x, y, z) be the image of P in the given plane.


                                                                                            1


                         Any point on this line is (λ + 1, 2λ + 2, 4λ + 3)

                         If this point is Q, then (λ + 1) + 2 (2λ + 2) + 4 (4λ + 3) = 38

                                  λ=1           Q (2, 4, 7)                                 1

      Q is the mid-point of




          Image (P′) is (3, 6, 11)                                                          1



23.                                                                                        1½



                                                                                           1½


                              AB2 = OA2 - OB2 = (5)2 - (3)2 = 16            AB = 4          1

                         i.e. radius of circular section = 4




24.                                                                                        1½



                                                                                           1½



                                                                                            1




                                             119
25.                                                              Correct Figure                           ½
                                 Let the force 49 N act at angle of θ with the vertical
                                 and let T be the tension in the string.
                                 ∴ By Lami’s theorem we have


                                                 =                     =                                   1


                                 ∴         =                    =                                         ½
                                 ∴ sin (30° + θ°) = 1 ⇒ 30° + θ = 90° ⇒ θ = 60°                            1


                                 T = 98.sin60° = 98.            = 49       N                               1


26.                                  Correct figure                                                        1
                                     Let u be the velocity of projection with angle             , then
                                     using

                                                                                                           1
                                                 α

                                      at A,                                    ......... (i) and           1


                                      at B,                                    ......... (ii)              1
      Muliplying (i) by 9 and subtracting (ii) from it we get

                                                                                                         1+1


                                          SECTION C

19.   Let E1 : bolt from machine A, E2: bolt from machine B
           E3 : bolt from machine C, H : Getting a defective bolt

                                                                                                           1




                                                                                                           1



                                               120
           =                                                       ½



           =                                                       ½


20.   Mean = np = 4, Variance = npq =                              1


                                                                   1




             ∴ Distribution is


                                                                   1

21.   BD = s.r.t = 1250, s = face value, r = rate%, t = time       ½

      BG = BD - TD = s.r.t -                                       ½


           ∴ 1250 rt = 50 (1+ rt) ⇒ rt =           =               1


                  ∴ s=             =              = Rs 30,000      1




22.   BG =           =                                             1



      ⇒ 505 t2 - t - 20 = 0 solving to get t =      = 73 days      1

      ∴ Nominal date of maturity is 70 days ofter 4th July, 2005

      ∴        July Aug Sept

                27       31   12       i.e 12th Sept 2005          1


                                            121
23.   Amount = Rs [575000 - 75000] = Rs. 500,000                                           ½

      rate % i =           = 0.05, n = 20


      Using S =                      ⇒P=                                                  1+½


      P =                      =                     =                                      1

        = Rs 15105.74 or Rs 15106                                                           1

24.   Profit sharing ratio of A and B is 5:3

            Contribution is 1/5 share of C =              .        = 5/40                  ½


            Contribution is 1/5 share of C =             .        = 3/40                   ½


      ∴ New Profit Sharing ratio A : B : C                                                 ½


                         or          :           :                or 5 : 3 : 2              1
                                                              ′
      Since sacrificing ratio is 5 : 3

       ∴         share in goodwill money =                        . 96000 = Rs 60,000       1

                                         share       = Rs 36,000                           ½

25.   Cost function C(x) = 900 + 3x +


            AC =         + 3 +                                                              1



                 (AC)                                                                       1



                 (AC) = 0 ⇒ x2 = 90000 ⇒ x = 300                                            1


                                                         x = 300 will give minimum A.C.     1



                                                     122
26.   Let Amount invested in Bonds A = Rs. x
      and Amount invested in Bonds B = Rs. y

      ∴ L.P.P. becomes: Maximise I =           +                                             1

                               subject to : x + y          12000

                                                    x      2000                             1½

                                                    y      4000

                                                    x      0, y       0
                                                         For correct graph
                                                         & correct feasible region           2
                                                         IA = 160 + 1000 = 1160
                                                         IB = 160 + 400 = 560                1
                                                         IC = 640 + 400 = 1040



                            ∴ For Maximum Interest

                                                   Amount invested in Bond A = Rs. 2000

                                                   Amount invested in Bond B = Rs. 10,000

                                                   Maximum Interest recieved = Rs. 1160     ½




                                           123
                                           ECONOMICS
Time allowed : 3 hours                                                             Maximum Marks : 100

     General Instructions :

     (i)   All questions in both the sections are compulsory.

     (ii) Marks for questions are indicated against each.

     (iii) Question Nos. 1 and 13 are very short-answer questions carrying 1 mark for each part.
           They are required to be answered in one sentence each.

     (iv) Question Nos. 2-5 and 14-17 are short-answer questions carrying 3 marks each. Answer
          to them should not normally exceed 60 words each.

     (v) Question Nos. 6-9 and 18-21 are also short-answer questions carrying 4 marks each.
         Answer to them should not normally exceed 70 words each.

     (vi) Question Nos. 10-12 and 22-24 are long-answer questions carrying 6 marks each.
          Answer to them should not normally exceed 100 words each.

     (vii) Answers should be brief and to the point and the above word limits be adhered to as
           far as possible.

     (viii) All parts of a question should be answered at one place.



                                     QUESTION PAPER CODE 58/1/1
                                                    Section A
1.         Answer the following questions :                                                       1×4
           (i) When is a good called an ‘inferior good’ ?
           (ii)   Define marginal cost.
           (iii) When is the supply of a commodity called ‘elastic’ ?
           (iv) Define marginal physical product.

2.         What is meant by consumer’s equilibrium ? State its condition in case of a single
           commodity.                                                                                3

3.         State the ‘total expenditure method’ of measuring price elasticity of demand.             3

4.         What is meant by returns to a factor ? State the law of diminishing returns to a
           factor.                                                                                   3


                                                      124
5.    State any three causes of a rightward shift of supply curve.                            3

6.    The price elasticity of supply of a commodity is 2. When its price falls from Rs. 10
      to Rs. 8 per unit, its quantity supplied falls by 500 units. Calculate the quantity
      supplied at the reduced price.                                                          4

7.    What change in total revenue will result in (i) a decrease in marginal revenue, and
      (ii) an increase in marginal revenue ?                                                  4

8.    Explain the problem of ‘what to produce’ with the help of an example.
                                               Or
      Why does an economic problem arise ? Explain the problem of ‘how to produce’.           4

9.    Why is the average revenue curve of a firm under perfect competition parallel to
      x-axis and negatively sloped under monopoly ?                                           4

      For Blind Candidates only in lieu of Q. No. 9.

      Why is a firm price taker under perfect competition and price maker
      under monopoly ? Explain.

10.   The total fixed cost of a firm is Rs. 12. Given below is its marginal cost schedule.
      Calculate total cost and average variable cost for each given level of output.          6

         Output (units)                    1        2     3    4     5      6

         Marginal cost (Rs.)               9        7     2    4     8     12

11.   State three causes each for a rightward shift and a leftward shift of demand
      curve.                                                                                  6

12.   How is the equilibrium price and equilibrium quantity of a normal commodity affected
      by an increase in the income of its buyers ? Explain with the help of a diagram.
                                               Or
      At a given price of a commodity, there is ‘excess demand’. Is this price an
      equilibrium price ? If not, how will the equilibrium price be reached ? (use diagram)   6

      For Blind Candidates only in lieu of Q. No. 12

      Explain the effect of an increase in the income of the buyers of a commodity on
      its equilibrium price and equilibrium quantity.
                                               Or


                                                    125
      Define equilibrium price. at a given price of a commodity there is 'excess demand'.
      How will the equilibrium price be reached ? Explain.

                                           Section B
13.   Answer the following questions :                                                        1×4
      (i) Define macroeconomics.
      (ii)   In a government budget, revenue deficit is Rs. 50,000 crores and borrowings
             are Rs. 75,000 crores. How much is the fiscal deficit ?
      (iii) When will balance of trade show a deficit ?
      (iv) Why is the study of the problem of unemployment in India considered a
           macroeconomic study ?

14.   From the following data, calculate “gross value added at factor cost”.                   3
                                                    Rs. (in lakhs)
      (i)    Sales                                              180
      (ii)   Rent                                                 5
      (iii) Subsidies                                            10
      (iv) Change in stock                                       15
      (v) Purchase of raw materials                             100
      (vi) Profits                                               25

15.   Explain the meaning of investment multiplier. What can be its minimum value and
      why ?                                                                                     3

16.   Define aggregate demand. State its components.                                            3
17.   State the basis of classifying government expenditure into revenue and capital
      expenditure. Give an example of each.                                                     3

18.   Explain any one of the following functions of a central bank :
      (i) Currency authority, and (ii) lender of last resort.
                                            Or
      Explain the ‘acceptance of deposits’ function of a commercial bank.                       4

19.   Giving reasons, categorise the following into revenue receipts and capital receipts :    4
      (i)    Recovery of loans
      (ii)   Corporation tax
      (iii) Dividends on investments made by government
      (iv) Sale of a public sector undertaking


                                                   126
20.   What is meant by foreign exchange rate ? Why does a rise in foreign exchange
      rate cause a rise in its supply ?                                                       4
21.   Explain the ‘store of value’ function of money.                                         4
22.   From the following data calculate national income by (a) income method and
      (b) expenditure method :                                                               2,4
                                                                           Rs. (in crores)
      (i)    Private final consumption expenditure                            2,000
      (ii)   Net capital formation                                              400
      (iii) Change in stock                                                       50
      (iv) Compensation of employees                                          1,900
      (v) Rent                                                                  200
      (vi) Interest                                                             150
      (vii) Operating surplus                                                   720
      (viii) Net indirect tax                                                   400
      (ix) Employers’ contribution to social security schemes                   100
      (x) Net exports                                                             20
      (xi) Net factor income from abroad                                      (-) 20
      (xii) Government final consumption expenditure                            600
      (xiii) Consumption of fixed capital                                       100
                                             Or
      From the following data calculate :                                                    3,3
      (a) Private income, and (b) Personal disposable income :
                                                                           Rs. (in crores)
      (i)    Income from domestic product accruing to the private sector      4,000
      (ii)   Savings of non-departmental public enterprises                     200
      (iii) Current transfers from government administrative departments        150
      (iv) Savings of private corporate sector                                  400
      (v) Current transfers from rest of the world                                50
      (vi) Net factor income from abroad                                      (-) 40
      (vii) Corporation tax                                                       60
      (viii) Direct personal taxes                                              140

23.   Draw on a diagram a straight line savings curve for an economy. From it derive the
      consumption curve, explaining the method of derivation. Show a point on the
      consumption curve at which average propensity to consume is equal to 1.                 6


                                                  127
      For Blind Candidates only in lieu of Q. No. 23.

      Explain the relationship between average propensity to consume and average
      propensity to save. Can the value of average propensity to consume be greater
      than 1 ? Give reasons for your answer.

24.   Will the following factor incomes be included in domestic factor income of India ?
      Give reasons for your answer.                                                                   6
      (i)    Compensation of employees to the residents of Japan working in Indian
             embassy in Japan.
      (ii) Profits earned by a branch of foreign bank in India,
      (iii) Rent received by an Indian resident from Russian embassy in India.
      (iv) Profits earned by a branch of State Bank of India in England.


                                  QUESTION PAPER CODE 58/1

                                               SECTION A

1.    Answer the following questions :                                                            1×4=4
      (i)    When is a good called a ‘normal good’ ?
      (ii)   Define fixed cost,
      (iii) Define marginal revenue.
      (iv) Price elasticity of supply of a good is 0.8. Is the supply ‘elastic’ or ‘inelastic’,
           and why ?

2.    Define marginal utility. State the law of diminishing marginal utility.                         3

3.    State any three factors that affect the price elasticity of demand of a commodity.             3

4.    What is meant by returns to scale ? State the reasons for increasing returns to scale.          3

5.    State any three causes of a leftward shift of supply curve.                                     3

6.    When the price of a commodity rises from Rs. 10 to Rs. 11 per unit, its quantity
      supplied rises by 100 units. Its price elasticity of supply is 2. Calculate its quantity
      supplied at the increased price.                                                                4

7.    What will be the effect of the following changes in total revenue on marginal
      revenue ?                                                                                       4
      (i)    Total revenue increases at a decreasing rate,
      (ii)   Total revenue increases at a constant rate.


                                                    128
8.    Draw a production possibility curve. What does a point below this curve
      indicate ? Explain. .                                                                   4
                                               OR
      Explain the problem of ‘what to produce’ with the help of an example.

                  For Blind Candidates only in lieu of Q. No. 8

      Explain the problem of ‘for whom to produce’ with the help of an example.
                                               OR
      Explain the problem of ‘what to produce’ with the help of an example.

9.    Draw the average revenue curve of a firm under (i) monopoly and (ii) perfect
      competition. Explain the difference in these curves, if any.                            4

                              For Blind Candidates only in lieu of Q. No. 9

      Distinguish between monopoly and perfect competition.

10.   Calculate total cost and average variable cost of a firm at each given level of
      output from its cost schedule given below.                                              6

          Output (units)          Average fixed cost (Rs.)      Marginal cost (Rs.)

                 1                          60                           32

                 2                          30                           30

                 3                          20                           28

                 4                          15                           30

                 5                          12                           35

                 6                          10                           43

11.   Define market demand. State the factors that affect it.                                 6

12.   How will an increase in the income of the buyers of an ‘inferior good’, affect its
      equilibrium price and equilibrium quantity ? Explain with the help of a diagram.        6
                                               OR
      At a given price of a commodity, there is excess supply. Is it an equilibrium price ?
      If not, how will the equilibrium price be reached ? (Use diagram)



                                                    129
                          For Blind Candidates only in lieu of Q. No. 12

      Explain the effects of an increase in demand of a commodity on its equilibrium
      price and equilibrium quantity.
                                             OR
      Explain the effects of an increase in supply of a commodity on its equilibrium price
      and equilibrium quantity.

                                             SECTION B
13.   Answer the following questions :                                                       1×4
      (i)    In a government budget, primary deficit is Rs. 10,000 crores and interest
             payment is Rs. 8,000 crores. How much is the fiscal deficit ?
      (ii)   Give two examples of macro-economic variables.
      (iii) Define macro-economics.
      (iv) When will balance of trade show a surplus ?

14.   From the.following data calculate ‘gross value added at factor cost’ :                   3
                                                                   (Rs. in lakhs)
      (i)    Net indirect tax                                           20
      (ii)   Purchase of intermediate products                         120
      (iii) Purchase of machines                                       300
      (iv) Sales                                                       250
      (v) Consumption of fixed capital                                  20
      (vi) Change in stock                                              30

15.   What is meant by ‘investment multiplier’? Explain the relationship between marginal
      propensity to consume and investment multiplier.                                         3

16.   Define average propensity to save and marginal propensity to save. Can the value
      of average propensity to save be negative ? Give reasons for your answer.                3

17.   State the basis of classifying government receipts into revenue receipts and capital
      receipts. Give an example of each.                                                       3

18.   How does a central bank perform the function of controller of credit ?
                                             OR
      Explain the meaning and any one function of a commercial bank.                           4


                                                  130
19.   Giving reasons categorise the following into revenue expenditure and capital
      expenditure :                                                                           4
      (i) Subsidies
      (ii) Grants given to State Governments
      (iii) Repayment of loans
      (iv) Construction of school buildings

20.   Define foreign exchange rate. Why does the demand for foreign exchange rise
      when its price falls ?                                                                  4

21.   Explain any one problem faced in the barter system. How has money solved this
      problem ?                                                                               4

22.   From the following data calculate net national product at factor cost by (a) income
      method, and (b) expenditure method :                                                  3, 3
                                                                          (Rs. in crores)
      (i) Current transfers from rest of the world                              100
      (ii)   Government final consumption expenditure                       1,000
      (iii) Wages and salaries                                              3,800
      (iv) Dividend                                                           500
      (v) Rent                                                                200
      (vi) Interest                                                           150
      (vii) Net domestic capital formation                                    500
      (viii) Profits                                                          800
      (ix) Employers’ contribution to social security schemes                 200
      (x) Net exports                                                     (—) 50
      (xi) Net factor income from abroad                                  (—) 30
      (xii) Consumption of fixed capital                                       40
      (xiii) Private final consumption expenditure                          4,000
      (xiv) Net indirect tax                                                  300
                                             OR
      Calculate (a) private income, and (b) personal disposable income from the
      following data :
                                                                   (Rs. in crores)
      (i)    Income from property and entrepreneurship accruing to
             government administrative departments                            500
      (ii)   Savings of non-departmental public enterprises                   100


                                                  131
      (iii) Corporation tax                                                    80
      (iv) Income from domestic product accruing to private sector           4,500
      (v)    Current transfers from government administrative departments     200
      (vi) Net factor income from abroad                                    (—) 50
      (vii) Direct personal taxes                                             150
      (viii) Indirect tax                                                     220
      (ix) Current transfers from rest of the world                            80
      (x)    Savings of private corporate sector                              500

23.   Why must aggregate demand be equal to aggregate supply at the equilibrium level
      of income and output ? Explain with the help of a diagram.                          6

                            For Blind Candidates only in lieu of Q. No. 23

      If in an economy aggregate demand and aggregate supply are not equal, what
      changes will take place in the economy ? Explain.

24.   Will the following factor incomes be a part of domestic factor income of India ?
      Give reasons for your answer.
      (i)    Profit earned by foreign banks from their branches in India.
      (ii)   Salary received by Indian residents, working in American embassy in India.
      (iii) Profits earned by an Indian company from its branch in Singapore.
      (iv) Compensation of employees given to residents of China working in Indian
             embassy in China.                                                            6




                                                   132
                                     Marking Scheme ---- Economics

     General Instructions

     1.         Please examine each part of a question carefully and allocate the marks allotted for the part
                as given in the marking scheme below. Total marks for any answer may be put in a
                circle on the left side where the answer ends.

     2.         The answers given in the marking scheme below are suggested answers. The content is thus
                indicative. The candidates may express the content in various forms. But, for standardization
                of evaluation it is necessary to follow the marking scheme suggested here on the basis of
                expected content.

     3.         For mere arithmetical errors, there should be minimal deduction. Only ½ mark be deducted
                for such an error.

     4.         Wherever only two/three or a "given" number of examples/factors/points are expected only
                the first two/three or expected number should be read. The rest are irrelevant and must not
                be examined.

     5.         There should be no effort at "moderation" of the marks by the evaluating teachers. The
                actual total marks obtained by the candidate may be of no concern to the evaluators.

     General Note : In case of numerical question no mark is to be given if only the final answer is
                          given.



                                        QUESTION PAPER CODE 58/1/1
                                     EXPECTED ANSWERS/VALUE POINTS
                                                    SECTION ‘A’

1.        (i)     A good is called inferior when a rise (fall) in the income of its buyer results in
                  a fall (rise) in its demand.                                                                  1
          (ii)    Marginal cost is the addition to total cost when an additional unit of output is
                  produced.                                                                                     1
          (iii) When its elasticity of supply is greater than one.                                              1
          (iv) Marginal physical product is the addition to total physical product when an
               additional unit of an input is employed.                                                         1


                                                          133
2.   Consumer’s equilibrium refers to a situation when a consumer gets maximum
     satisfaction by spending his income,                                                      1½

     Condition of equilibrium :                                                                1½


3.   (i)    When a rise (fall) in the price of a commodity results in a fall (rise) in total
            expenditure on it, then its elasticity of demand is greater then one.               1
     (ii)   When a change in the price a commodity results in no change in total
            expenditure on it, then its elasticity of demand is equal to one.                   1
     (iii) When a rise (fall) in the price of a commodity results in a rise(fall) in total
           expenditure on it, then its elasticity of demand is less than one.                   1

4.   Change in total physical product, when an additional unit of a variable factor is
     employed with fixed factors, is called returns to a factor.                                1
     As more and more units of variable factor are used with fixed factors, after a
     certain level, its marginal physical product decreases with further employment of
     it. This is the law of diminishing returns to a factor.                                    2

5.   (i)    Improvement in technology                                                           1
     (ii)   Fall in input prices                                                                1
     (iii) Fall in price of related products, etc.                                              1

6.                                                                                              1


                                                                                               1½

                                                                                               ½
     Quanitity supplied at the reduced price                                                    1

7.   (i)    An increase in total revenue at a diminishing rate or a decrease in total
            revenue will result in a decrease in marginal revenue                               2
     (ii)   An increase in total revenue at an increasing rate will result in an increase in
            marginal revenue                                                                    2

8.   An economy has only limited resources and these resources have alternative uses.
     So all the goods and services required in an economy cannot be produced. This
     gives rise to the problem of what to produce with the given resources.                     2
     Explanation with the help of an example:                                                   2


                                                     134
                                                    OR
      An economic problem arises because wants are unlimited and the resources are
      limited and have alternative uses.                                                               2
      Most of the goods can be produced by using different techniques of production
      such as labour intensive or capital intensive technique. Which technique
      should be used is the problem of how to produce. This problem arises because
      the resources are limited.                                                                       2

9.    Under perfect competition the price is determined by the industry and at this price
      a firm can sell any quantity. So the demand curve i.e. AR curve is perfectly elastic
      under perfect competition. Under monopoly the firm can sell more only at a lower
      price, so the AR curve is negatively sloped.                                                     4
      Expected answer for the question for blind candidates
      Under perfect competition the price is determined by the industry and this price is
      the given price for a firm. At this price the firm can sell any quantity of the commodity.
      It cannot influence the price because its share in total supply is insignificant. So a
      firm under perfect competition is a price taker.                                                 2
      Under monopoly , a firm can charge any price. However it can not sell any quantity
      at that price. If it decides to charge a high price its sales will be less. So a monopolist
      is a price maker.                                                                                2

10.   Output            F.C.      M.C.        TVC          AVC         TC
      (Units)           (Rs.)     (Rs.)       (Rs.)        (Rs.)      (Rs.)

             1           12         9           9              9       21
            2            12         7          16              8       28
            3            12         2          18              6       30
            4            12         4          22              5.5     34
            5            12         8          30              6       42
            6            12        12          42              7       54                           ½×12

11.   Causes for a rightward shift of demand curve:
      (i)        Increase in income of buyers (normal good)
      (ii)       Increase in price of a substitute good.
      (iii) Decrease in price of a complementary good.
      (iv) Favourable change in taste / fashion for the commodity
                                                                                    (Any three)      1×3


                                                         135
      Causes for a leftward shift of demand curve:
      (i)    Decrease in income of buyers (normal good)
      (ii)   Decrease in price of substitute good
      (iii) Increase in price of complementary good
      (iv) Unfavourable change in taste / fashion.
                                                                                 (Any three)     1×3

12.   An increase in the income of the buyers of a normal commodity results in an
      increase in its demand (more demand at the same price ). An increase in demand
      results in a rightward shift of demand curve as shown by dotted demand curve in
      the diagram.                                                                                 1




                                                                                                   2




      Explanation :
      The given equilibrium price and quantity are OP and OQ respectively , Increase in
      income results in a rightward shift of demand curve (dd’). At price OP now the
      quantity demanded is OQ2 which is more than the quantity supplied (OQ). This
      will result in competition among buyers leading to a rise in price. A rise in price will
      result in an upward movement along the demand curve and supply curve as per
      the law of demand and law of supply. This is shown by the arrows in the diagram.
      These changes will continue till the price rises to a level at which quantity demanded
      and supplied are equal. This price in the diagram is OP1. The new equilibrium
      price (OP1) is greater than old equilibrium price (OP). The new equilibrium quantity
      (OQ1) is also greater than old equilibrium quantity (OQ).                                    3

                                              OR

      The price at which there is excess demand, can not be an equilibrium price because
      at equilibrium price the quantity demanded must be equal to the quantity supplied.           1



                                                    136
                                                                                          2




In the above diagram , the given price is shown as OP and at this price excess
demand is equal to TR. This will result in competition among buyers causing a rise
in price. A rise in price would result is upward movement along demand curve and
supply curve as per the law of demand and law of supply. This is shown by arrows
in the diagram. This reduces the excess demand. These changes will continue till
the price rises to a level at which excess demand is whiped out. Such a price is
OP1 at which quantity demanded and quantity supplied both are equal to OQ1.
OP1 is the equilibrium price.                                                             3

Expected answer for question for blind candidates:-
An increase in the income of the buyers of a commodity results in an increase in its
demand.                                                                                   1
With no change in supply, an increase in demand at the given equilibrium price will
result in excess demand.                                                                  1
Excess demand will result in competition among buyers, It will raise the price. A
rise in price will result in reducing the quantity demanded and increasing the quantity
supplied. This will reduce the excess demand. These changes will continue till the
price rises to a level at which the quantity demanded and supplied are equal. This
will be the new equilibrium price. The new equilibrium price will be higher than the
old equilibrium price. The new equilibrium quantity would be more than the old
equilibrium quantity.                                                                     4
                                           OR
The price at which quantity demanded and quantity supplied of a commodity are
equal is called the equilibrium price.                                                    1
Excess demand at a given price means the quantity demanded is greater than the
quantity supplied at that price. This will result in competition among its buyers,
which will result in rise in price. A rise in price will reduce demand and increase
supply. Thus the original gap between quantity demanded and quantity supplied
will be reduced. These changes will continue til! the price rises to a level at which
quantity demanded will be equal to quantity supplied. This would be the equilibrium
price.                                                                                    5


                                             137
                                        SECTION 'B'

13.   (i)    That branch of economics which deals with the behavior of national
             aggregates.                                                                          1
      (ii)   Fiscal deficit = Rs. 75000 crores                                                    1
      (iii) When the value of imports of goods is greater than the value of exports of
            goods.                                                                                1
      (iv) Because the problem relates to the economy as a whole                                  1

14.   Gross value added @ f.c. = (i) + (iv) – (v) + (iii)                                        1
                               = 180 + 15 – 100 + 10                                            1½
                               = Rs. 105 lakhs                                                   ½

15.   When investment expenditure increases (decreases) the income increases
      (decreases) and the total increase (decrease) in income is a multiple of the
      increase (decrease) in investment. So investment multiplier is the number by
      which change in investment must be multiplied in order to get the change in
      income. Its value is given by the following equation.

                                                                                                  2

      The minimum value of mpc can be zero.
      So the minimum value of multiplier is 1.                                                    1

16.   Total demand for goods & services in an economy is called aggregate demand.                 1
      Its components are :
      (i) Private consumption
      (ii) Private investment
      (iii) Govt. expenditure and
      (iv) Net exports                                                                          ½×4

17.   An expenditure that neither creates an asset nor reduces a liability is categorised
      as revenue expenditure. If it creates an asset or reduces a liability it is catagorised
      as capital expenditure.                                                                     2
      Examples : Cap. Exp - repayment of loan etc.                                               ½
                Rev. Exp. - Salaries to govt. employees etc.                                     ½

18.   A detailed explanation is required
                            (To be marked as a whole)
                                         Or
      A detailed explanation is needed
                             (To be marked as a whole)                                            4


                                                   138
19.   (i)    Recovery of loans reduces an asset, so it is a capital receipt                      1
      (ii)   Corporation tax neither creates a liability nor reduces an asset, so it is a
             revenue receipt                                                                     1
      (iii) Dividends neither create a liability for the government nor any asset is reduced,
            so it is a revenue receipts,                                                         1
      (iv) Sale of public sector undertaking reduces an asset, so it is a capital receipt.       1
                                                 (Marks be given only if reasons are given)

20.   Foreign exchange rate is the price of one currency in terms of another currency.           1
      A rise in foreign exchange rate means the price of a foreign currency increases in
      terms of domestic currency. This makes home country’s goods cheaper to
      foreigners. So it increases exports. Increase in exports will increase the supply of
      foreign exchange. Thus the supply of foreign exchange increases as its rate
      increases.                                                                                 3
      (explanation with any other relevant example may also be treated as correct)

21.   Money can be stored for use in future.
      [a brief explanation]
                                                                 (To be marked as a whole.)      4

22.   (a) Income method
             National Income = (iv) + (vii) + (xi)                                               1
                                = 1900 + 720-20                                                 1½
                                = Rs 2,600 crores                                               ½
      (b) Expenditure method
             National Income = (i) + (xii) + (ii) + (x) + (xi) - (viii)                          1
                                = 2000 + 600 + 400 + 20 - 20 - 400                              1½
                                = Rs 2,600 crores                                               ½

                                          Or

      (a) Private income = (i) + (iii) + (v) + (vi)                                              1
                                = 4000 +150 + 50-40                                             1½
                                = Rs 4,160 crores                                               ½
      (b) Personal disposable income = Private income – (iv) – (vii) – (viii)                    1
                                             = 4160 – 400 – 60 – 140                            1½
                                             = Rs 3,560 crores                                  ½


                                                     139
23.


                                          D

                                                                                                2




      SS’ is the saving curve which shows negative savings equal to OS at zero level            1
      of income and zero saving at O A level of income. At zero level of income
      consumption expenditure is equal to OC which is equal to negative saving of OS
      at that level of income So C is the starting point of consumption curve Savings are
      zero at OA level of income as the whole of income is spent. So at OA level of
      income, consumption expenditure must be equal to OD=OA. This gives a point B
      on the consumption curve. By joining C and B and extending it further we get
      consumption curve.                                                                        2
      At point B on the consumption curve, total consumption expenditure (C) is equal
      to total income (Y). So C/Y=1. Hence at point B on consumption curve APC=1.               1

      Expected answer for question for blind candidates:

      Average propensity to consume is the ratio of consumption expenditure and income,
      (C/Y). Average propensity to save is the ratio of saving and income, S/Y. As the
      income is consumed or saved, the sum of average propensity to consume and
      average propensity to save is always equal to 1. The higher (lower) the APC, the
      lower (higher) will be the APS.                                                           4
      The value of APC = C/Y. It can be greater than one if C is greater than Y. At very
      low levels of income, savings are spent to meet the very basic necessities. So at
      these levels of income C is greater than Y and thus value of APC can be greater
      than 1.                                                                                   2

24.   (i)    Indian embassy in Japan is a part of domestic territory of India. So
             compensation of employees paid to Japanese working there is a part of
             domestic factor income of India.                                                  1½
      (ii)   The branch of foreign back is located in domestic territory of India. Any
             factor income earned in domestic territory is a part of domestic factor income.
             So it is a part of domestic factor income of India.                               1½


                                                   140
     (iii) This factor income is not earned in the domestic territory of India because
           Russian embassy in India is not a part of domestic territory of India. So it will
           not be included in domestic factor income of India.                                  1½
     (iv) The branch of SBI in England is not located within the domestic territory of
          India, so profits earned by it are not part of domestic factor income of India.       1½
             (No marks be given if reasons are not given)

                                   QUESTION PAPER CODE 58/1
                            EXPECTED ANSWERS/VALUE POINTS
                                             SECTION ‘A’

1.   (i)     When a rise in income of its buyers results in a rise in its quantity demanded.     1
     (ii)    Cost that does not change with change in output                                     1
     (iii)   Addition to total revenue by sale of an additional unit of out-put                  1
     (iv)    Inelastic, because price elasticity of supply is less than one                    ½+½

2.   Addition to total utility when one more unit of a commodity is consumed. Or utility
     from the last unit of a commodity consumed.                                                 1
     As more and more units of a commodity are consumed each additional unit gives
     lesser and lesser utility. This is the law of diminishing marginal utility.                 2

3.   Factors affecting price elasticity of demand :
     (i) Availability of substitutes,
     (ii) Proportion of total expenditure spent on the commodity
     (iii) Habits
     (iv) Time period
           or any other relevant factor
                                                                               (Any three)     1×3

4.   When all the inputs are increased simultaneously and in the same proportion then
     the resultant increase in output is called returns to scale.                                1
     Production on large scale facilitates division of labour and specialization. This
     results in increase in productivity.                                                        2

5.   Causes of leftward shift of supply curve :
     (i) Rise in the prices of related goods.
     (ii) Rise in the prices of the inputs.
     (iii) Increase in excise tax, or any other tax on production
     (iv) Any other relevant factor
                                                                               (Any three)     1×3


                                                   141
6.                                                                                       1


                                                                                        1½

                                                                                        ½
     Supply at the increased price =
                                   = 500 + 100 = 600.                                    1

7.   (i)    MR will be positive and decreasing                                           2
     (ii)   MR will be positive and constant                                             2

8.




                                                                            Diagram      2




                                                             Explanation about pt. P     2
                                           OR
     An economy has only limited resources and these resources have alternative uses.
     So all the goods and services required in an economy cannot be produced. This
     gives rise to the problem of what to produce with ihe given resources.              2
     Explanation with the help of an example:                                            2
     Expected answer for the question for blind candidates
     The problem is of making a choice as to how to distribute goods and services
     among people. The distribution must be among those who can purchase these.
     Only those who have income can purchase. So, the problem is essentially the
     problem of how to distribute income among people. People earn income in the
     form of wages, profit, interest and rent.                                           4
                                                          (To be marked as a whole)
                                            OR
     An economy has only limited resources and these resources have alternative uses.
     So all the goods and services required in an economy cannot be produced. This
     gives rise to the problem of what to produce with the given resources.              2
     Explanation with the help of an example:                                            2


                                                 142
9.




                                                                                           1×2




      Reasons : In monopoly a firm can sell more only at a lower price.                      1
      In perfect competition a firm can sell any quantity at a given price.                  1

                        Expected answer for the question for blind candidates

                Perfect Competition               Monopoly
      (i)       Large number of sellers    (i) A single seller,
      (ii)      Homogeneous product        (ii) No close substitute of product
      (iii) Firm is the price taker        (iii) Firm is the price maker                   2×2
      (Any two points of distinction)

10.   Output          AFC       TFC        MC         TVC         AVC          TC
      (Units)         (Rs.)     (Rs.)     (Rs.)       (Rs.)       (Rs.)       (Rs.)
            1          60        60        32             32       32          92
            2          30        60        30             62       31         122
            3          20        60        28             90       30         150
            4          15        60        30            120       30         180
            5          12        60        35            155       31         215
            6          10        60        43            198       33         258         ½×12

11.   It is the total demand by all the buyers of a commodity at a given price and in a
      given period of time. Determinants of market demand :-                                 1
      (i)       Price of the commodity.
      (ii)      Income of its buyers.
      (iii) Prices of related goods.
      (iv) Tastes of the buyers.
      (v)       Number of buyers of the commodity.                                         1×5


                                                   143
12.   Increase in the income of buyers of an inferior good will result in decrease in its
      demand. It means the demand curve will shift to the left as shown in the diagram:       1




                                                                                              2




      The given equilibrium price and quantity are OP & OQ respectively - Increase in
      income results in a leftward shift of demand curve (dd1). At price OP now quantity
      demanded is OQ2 which is less than the quantity supplied (OQ). This will result in
      competition among sellers leading to a fall in price. A fall in price will result in
      downward movement along the demand curve and supply curve as per law of
      demand and law of supply. This is shown by arrows in the diagram. These changes
      will continue till the price falls to a level at which quantity demanded and supplied
      are equal. This price in the diagram is OP1. The new equilibrium price OP1 is
      lesser than the old equilibrium price (OP). The new equilibrium quantity (OQ1) is
      also less than the old equilibrium quantity (OQ).                                       3
                                             OR

                                                             S
                       D




                       S'
                                                     D'

                                                                                 Diagram :    2


                                                  144
      At OP price, excess supply is TR. It is not equilibrium price, because at equilibrium
      price both quantity demanded and supplied must be equal.
      Excess supply will result in competition among sellers causing a fall in price. A fall
      in price would result in downward movements along demand curve and supply
      curve as per the law of demand and law of supply . This is shown by arrows in the
      diagram. This reduces the excess supply. These changes will continue till the price
      falls to a level at which excess supply is whiped out, Such a price is OP1 at which
      quantity demanded and supplied both are equal to OQ1 OP1 is the equilibrium
      price.                                                                                     4

                  Expected answer for the question for blind candidates

      An increase in demand means at the same price quantity demanded rises. This
      results in excess demand at the given equilibrium price. This results in competition
      among buyers leading to a rise in price. A rise in price will reduce quantity demanded
      and increase quantity supplied, reducing the excess demand. These changes
      will continue till the price rises to a level at which quantity demanded and supplied
      are equal. This is the new equilibrium price which will be higher than the old
      equilibrium price. Equilibrium quantity will also be more.                                 6

                                              Or

      An increase in supply means quantity supplied rises at the given equilibrium price.
      This results in excess supply. This would result in competition among sellers leading
      to a fall in price. A fall in price results in rise in demand and fall in supply. This
      reduces excess supply. These changes continue till price falls to a level at which
      quantity demanded and supplied are equal. The new equilibrium price is less than
      the original equilibrium price and equilibrium quantity will also fall.                    6

                                       SECTION 'B'

13.   (i)    Fiscal deficit = 10000 + 8000 = Rs 18000 crores                                     1
      (ii)   (a) National income (b) Growth rate etc.                                          ½×2
      (iii) That branch of economics which deals with behavior of aggregates
            relating to the economy as a whole.                                                  1
      (iv) When exports of goods is greater than the imports of goods.                           1

14.   Gross value added @ f.c = (iv) + (vi) – (ii) – (i)                                         1
                                  = 250 + 30 – 120 – 20                                        1½
                                  = Rs 140 lakhs                                                ½
      (NO marks be award if only final answer is given)


                                                   145
15.   An increase (decrease) in investment results in increase (decrease) in income
      which is a multiple of the change in investment. This multiple is the investment

      multiplier.           , where K is the multiplier.                                         1


      The value of multiplier depends, on MPC as                      . The higher (lower)

      the mpc the higher (lower) the value of K.                                                 2

16.   Average propensity to save is the ratio of total savings and total income.                 1
      Marginal propensity to save is the ratio of increased savings (out of increased
      income) and increased income.                                                              1
      Yes, value of average propensity to save can be negative when at very low level of
      income, consumption expenditure exceeds income and there is dissaving, so
      savings are negative and APS is negative.                                                  1

17.   Any receipt that reduces assets or creates a liability is a capital receipt. Any receipt
      that neither creates a liability nor reduces assets is a revenue receipt.                  2
      Examples: Rev. Receipts - Tax revenue, etc.                                                ½
                  Cap. Receipts - borrowings, etc.                                               ½

18.   The central bank controls credit through the various methods categorized as the
      quantitative and the qualitative methods. Quantitative methods include bank rate
      policy, open market operations, varying reserve requirements. These methods
      affect total quantity of credit in the country. Qualitative methods include margin
      requirements, moral suasion, etc. These methods affect allocation of credit among
      the alternative uses.                                                                      4
      (To be marked as a whole)
                                               Or
      Meaning of commercial bank.                                                                1
      Explanation of any one function.                                                           3

19.   (i)   Subsidies neither create assets nor reduce liabilities, so it is a revenue
            expenditure.                                                                         1
      (ii) Grants given to state is a revenue expenditure because it neither create assets
            nor reduce liabilities.                                                              1
      (iii) Repayment of loans is a capital expenditure as it reduces a liability.               1
      (iv) Construction of a school building is a capital expenditure as it creates an
            asset.                                                                               1
            (No marks to be awarded if reasons are not given)



                                                    146
20.   It is the price of foreign currency in terms of domestic currency.                   1
      A fall in price of foreign currency in terms of domestic currency means foreign
      currency becomes cheaper. This would encourage more imports as imports become
      cheaper. So demand of foreign currency increase, (or explanation in terms of any
      other example).                                                                      3
21.   Explanation of any one problem of barter system.                                     2
      Explanation of how money solved it.                                                  2
22.   (a) Income method
          NNP @ f.c = (iii + ix) + (v) + (vi) + (viii) + (xi)                              1
                     = 3800 + 200 + 200 + 150 + 800 - 30                                  1½
                     = Rs 5120 crores                                                      ½
      (b) Expenditure Method
          NNP @ fc = (ii) + (xiii) + (vii) + (x) + (xi) - (xiv)                            1
                      = 1000 + 4000 + 500 -50 - 30 - 300                                  1½
                      = Rs. 5120 crores                                                    ½
                                            Or
      (a) Private income = (iv) + (v) + (vi) + (ix)                                        1
                         = 4500 + 200 – 50 + 80                                           1½
                         = Rs 4730 crores                                                  ½
      (b) Personal Disposable income = Private Income – (iii) – (x) – (vii)                1
                                     = 4730 – 80 – 500 – 150                              1½
                                     = Rs 4000 crores                                      ½
23.   Equilibrium is reached only when AD=AS because at this level there is no tendency
      for income and output to change. In the diagram the equilibrium is at K where AD
      intersects 45° line. At this point AD = AS.                                          1




                                                                                           2




                                                 147
      Suppose we take another point on AD. Let it be R. At this point AD>AS. This is
      not an equilibrium because this situation will not stay. It will change. When AD>AS
      inventory level falls. Producers respond by producing more output. More output
      means more income. Rise in output means rise in AS. Rise in income means rise in
      AD. Both continue to rise till they reach K where AD=AS.                               3

      Expected answer for the question for blind candidates

      When AD and AS are not equal, inventory changes. Producers respond by changing
      output. Change in output leads to change in income. Change in output means
      change in AS. Change in income means change in AD. Both AS and AD continue
      to change till AD and AS become equal again.                                           6

      (This can be explained by taking any of the two situation : AD>AS or AD<AS)

24.   (i)    Yes, because this factor income is earned in the production units located
             within the domestic territory of India                                         1½
      (ii)   No, because this factor income is not earned in domestic territory of India
             as American Embassy is not a part of it.                                       1½
      (iii) No, because the branch is located outside the domestic territory of
             India.                                                                         1½
      (iv) Yes, because Indian embassy in China is a part of domestic territory of India.   1½

             (No marks to be awarded if reasons are not given)




                                                      148
                                    BUSINESS STUDIES

Time allowed : 3 hours                                                         Maximum Marks : 100

     General Instructions :
     (1) Answers to questions carrying 2-3 marks should not exceed 30-40 words.
     (2) Answers to questions carrying 4-5 marks should not exceed 60-80 words.
     (3) Answers to questions carrying 6 marks should not exceed 100 words.
     (4) Attempt all parts of a question together.


                                 QUESTION PAPER CODE 66/1/1

1.       Explain in brief ‘Management as an activity’.                                           2

2.       Hina and Harish are typists in a company having same educational qualifications.
         Hina is getting Rs. 3,000 per month and Harish Rs. 4,000 per month as salary
         for the same working hours.
         Which principle of management is violated in this case ? Name and explain the
         principle.                                                                              2

3.       Explain ‘Complex Organisational Structures’ as a barrier to effective
         communication.                                                                          2

4.       What is meant by ‘Capital Structure’ in financial management ?                          2

5.       Explain ‘Product Mix’ as an element of ‘Marketing Mix’.                                 2

6.       ‘Demand for reservation in jobs for minorities’ refers to an example of key
         component of general environment of business. Name and explain the
         component.                                                                              3

7.       State any three qualities of a good leader.                                             3

8.       Name the type of formal communication in which the persons of two
         departments one at a higher position and another at lower, communicate
         with each other ? Also state the problem which may arise in this type of
         communication.                                                                          3

9.       Explain any three causes of over capitalisation.                                        3

10.      Explain any three qualities of a good brand name.                                       3


                                                  149
11.   Explain ‘New Industrial Policy’ and ‘New Trade Policy’ as economic changes
      initiated by the Government of India since 1991 ?                              4

12.   Can an overburdened manager take help from his subordinates ? How ?
      Explain the three important things which he should keep in mind while
      taking such help.                                                              4

13.   Explain any four functions of Stock Exchange.                                  4

14.   Explain any four advantages of Time Rate System of wage payment.               4

15.   Distinguish between ‘Primary’ and ‘Secondary’ market on the basis of :         4
      (i)    Sale of securities
      (ii)   Capital formation
      (iii) Determination of price
      (iv) Location

16.   Explain any five techniques of ‘Scientific Management’.                        5

17.   ‘In the absence of management the productive resources will remain resources
      and shall never become production.’ Explain the importance of management
      in the light of the above statement.                                           5

18.   ‘Planning and controlling are inter-dependent and inter-linked activities’.
      Explain.                                                                       5

19.   Explain any five factors which affect the ‘Dividend Policy’ of a company.      5

20.   ‘A toy car free with ‘Maggi Noodles’ is an example of one of the techniques
      of Sales Promotion. Name the technique and explain two other techniques
      with examples.                                                                 5

21.   Explain ‘Policies’ and ‘Procedures’ as the types of Plans. Differentiate
      between the two on any four basis.                                             6
                                          Or
      Explain ‘Rules’ and ‘Methods’ as types of Plans. Differentiate between
      the two on any four basis.                                                     6

22.   What is meant by ‘Functional Structure’ of an organisation ? Explain any
      two of its advantages and two limitations.                                     6
                                          Or
      What is meant by ‘Divisional Structure’ of an organisation ? Explain any
      two of its advantages and two limitations.                                     6


                                               150
23.   Explain ‘Profit Sharing’, ‘Co-partnership’ and ‘Suggestion System’ as
      monetary incentives.                                                                 6
                                            Or
      Explain ‘Internship’, ‘Vestibule Training’ and ‘Job Rotation’ as the types
      of training.                                                                         6

24.   Explain any six rights of a consumer under the Consumer Protection
      Act, 1986.                                                                           6
                                            Or
      Explain any six responsibilities of the consumer to safeguard his interests.         6

25.   Explain any four objectives of ‘Marketing Management.’                               6
                                            Or
      Explain any four factors to be considered before taking a decision of a particular
      medium of advertising.                                                               6

                                QUESTION PAPER CODE 66/1

1.    Explain in brief ‘Management as a Process’.                                          2

2.    The Production Manager of Bharat Ltd. instructs a salesman to go slow in
      selling the product, whereas the Marketing Manager is insisting on fast selling
      to achieve the target.
      Which principle of management is being violated in this case ? State any one
      of the consequences of violation of this principle.                                  2

3.    Explain in brief the term ‘Leadership’ as an element of ‘Directing’.                 2

4.    What is meant by ‘Financial Management’ ?                                            2

5.    Explain in brief the term ‘Price Mix’ as an element of ‘Marketing Mix’.              2

6.    Banking sector reforms have led to easier credit terms and better services. This
      is an example of a key component of the ‘Business Environment’. Name this
      component and explain it in brief.                                                   3

7.    Explain in brief any three advantages of formal communication.                       3

8.    Name the type of formal communication in which two Departmental Heads
      communicate with each other. Give any two reasons why this type of
      communication is required.                                                           3

9.    Explain in brief any three causes of ‘Under-capitalisation’.                         3


                                                 151
10.   Explain in brief any three functions of packaging.                                3

11.   Explain ‘Customer-Focus’ and ‘Technology’ as managerial responses to
      changes in Business Environment.                                                  4
12.   Can an overburdened manager take help from his subordinates ? How ? Explain
      the three important things which he should keep in mind while taking such help.   4

13.   Explain the meaning of ‘Primary Market’ and ‘Secondary Market’ as components
      of Capital Market.                                                                4

14.   Explain any four disadvantages of Piece Rate System of Wage Payment.              4

15.   Distinguish between ‘Capital Market’ and ‘Money Market’ on the basis of :         4
      (i) Expected return
      (ii) Safety
      (iii) Instruments
      (iv) Liquidity

16.   Explain any five principles of Scientific Management.                             5

17.   Explain any five features of Management.                                          5

18.   ‘Control is considered important for many reasons.’ Explain any five such
      reasons.                                                                          5

19.   Explain any five factors which affect the capital structure of a company.         5

20.   ‘Automobiles Ltd. offered to sell their new bike at about Rs. 4,000 less than
      the usual price’, is an example of one of the techniques of Sales Promotion.
      Name the technique and explain two other techniques with examples.                5

21.   Explain the process of Planning.                                                  6
                     OR
      ‘Planning is an important function of management.’ Explain by giving any six
      points.

22.   What is meant by ‘Functional Structure’ of an organisation ? Explain any two
      of its advantages and any two limitations.                                        6
                                          OR
      What is meant by ‘Divisional Structure’ of an organisation ? Explain any two of
      its advantages and any two limitations.

23.   Explain Personnel Consultants’, ‘Employment Exchanges’ and ‘Media Advertising’
      as external sources of recruitment.                                               6


                                               152
                                             OR
      Explain ‘Vestibule Training’, ‘Job Rotation’ and ‘Internship’ as methods of training.

24.   Explain any six ways and means of Consumer Protection in India.                         6
                                             OR
      Explain any six responsibilities of the consumer to safeguard his interests.

25.   Explan’Marketing Research’, ‘Product Planning’ and ‘Buying and assembling’
      as functions of ‘Marketing’.                                                            6
                                             OR
      Explain the factors determining choice of channels of distribuion.




                                                  153
                    Marking Scheme ---- Business Studies

General Instructions
1.   The Marking Scheme provides general guidelines to reduce subjectivity in the marking.
     The answers given in the Marking Scheme are suggested answers. The content is thus
     indicative. If a student has given any other answer, which is different from the one given in
     the Marking Scheme, but conveys the requisite meaning, such answers should be given full
     weightage.
2.   Evaluation is to be done as per instructions provided in the Marking Scheme.
3.   If a question has parts, please award marks in the right hand side for each part. Marks
     awarded for different parts of the question should then be totalled up and written in the left
     hand margin.
4.   If a question does not have any parts, marks be awarded in the left-hand margin.
5.   If a candidate has attempted a question twice, marks obtained in the question attempted
     first should be retained and the other answer should be scored out.
6.   There are few questions on distinction between two concepts. In such questions, sometimes
     some students give one aspect of the difference correctly and the other is either wrong or
     not given at all, no mark should be given for such distinction.
7.   In case of choice-type questions, if an examinee attempts both the choices, assess the
     choice attempted first.
8.   In a question, if the question asks for two features/ characteristics/ points but an examinee
     writes more than two features/ characteristics/ points, say, five of which first is correct,
     second is incorrect, the first two should be assessed and the remaining should be ignored.
9.   It is expected that the Marking Scheme should be followed objectively to avoid over-strict
     tendency in marking. For instance, if an examinee scores 30 marks, his/ her marks should
     not be inflated to 33 simply to pass him/her.
10. Marks should be awarded keeping in view the total marks of that particular question and
    not the total marks of the question paper. For example, if one mark is given to a 3 marks
    question even if nothing is correct then that one mark constitutes 33% of the total marks
    ear-marked for this answer. This must be avoided.
11. A full scale of marks 0-100 has to be used. Please do not hesitate to award full marks if the
    answer deserves it. Similarly, wherever an examinee writes answer up to the mark, his/her
    marks should not be deducted unnecessarily.



                                              154
                               QUESTION PAPER CODE 66/1/1
                          EXPECTED ANSWERS/VALUE POINTS

1.   As an activity management plans, organizes, directs and controls the efforts of
     all those involved in the working operations of an enterprise.
                                            OR
     As an activity management is a human activity in which the human and other
     resources are integrated so that organizational goals are achieved effectively.
     (If any examinee has mentioned informational, decisional and
     interpersonal activities as management, due credit is to be given)                         2 marks

2.   The principle of ‘Equity’ is violated in this case. According to this principle
     employees should be given kind, fair and just treatment and there should not be
     any discrimination.
     1 mark for naming + 1 mark for explanation.                                                2 marks

3.   Complex Organization structures comprise of a long chain of command with
     several levels of authority. They act as barrier to effective communication as
     information may get filtered, modified or lost at different levels while moving up
     or down.                                                                                   2 marks

4.   The Capital structure means the proportion of debt and equity used for financing
     the operations of a business.                                                              2 marks
                                            OR
     The mix of securities issued and the proportion between them is called the
     capital structure..

5.   The total number of products and items that a particular marketeer offers to the
     market is called product mix.                                                              2 marks
                                            OR
     It is the combination of all decisions relating to product branding, packaging,
     labelling, trademarks etc.
     (Or any other correct explanation)

6.   The key component of general environment is –
     Social Environment :
     It describes the characteristics of the society in which the organization exists
     such as literacy rates, educational levels, customs, age, beliefs, values, lifestyle,
     demographic distribution, mobility of population. etc.
     (1 mark for naming + 2 marks for explanation with four factors.)                        1+2=3marks


                                                 155
7.    Qualities of a good leader: (Any three)
      (i)     Intelligence and scholarship
      (ii)    Ability to inspire people
      (iii)   Empathy
      (iv) Effective communicative skills
      (v)     Listening skills
      (vi) Sense of responsibility and self-confidence
      (vii) Knowledge of work
      (viii) Vision and foresight
      (ix) Impressive personality
      (x)     Objectivity
      (or any other correct quality)
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark for correct statement)                              1×3 = 3 marks

8.    The type of communication is Diagonal Communication.
      The problem which may arise in this type of communication is that it may cause
      the feeling of being ignored by the superior, if his subordinate talks directly to
      managers of other departments.
      (1 mark for naming + 2 marks for stating the problem)                           1+2 = 3 marks

9.    Causes of over capitalization (Any three)
      (i)     High promotion costs
      (ii)    Unduly high price paid for assets
      (iii) Inflationary conditions during a boom period
      (iv) Inadequate provision for depreciation
      (v) Liberal dividend policy
      (vi) Shortage of capital
      (vii) Inefficient use of assets
      (½ mark for naming + ½ mark for correct explanation)                            1×3 = 3 marks

10.   Qualities of good brand name : (Any three)
      (i)     Brand name should be short and simple.
      (ii)    Should be easily pronounceable.
      (iii) Should be suggestive.
      (iv) Should be distinctive.
      (v) Should be selected after considering its meaning in other languages and
          cultures.                                                              1×3 = 3 marks


                                                  156
11.   New Industrial Policy – (Any two)
      (i)    A no. of industries have been liberalized from the clutches of licensing and
             control.
      (ii) Substantive changes have been introduced in matters like foreign investment
           and technology import.
      (iii) MRTP Act and Foreign Exchange Regulation Act have been diluted
            significantly.
      (iv) Role of public sector has been curtailed.
      (or any other correct point)

      New Trade Policy – (Any two)
      (i)    Almost all imports have been liberalized.
      (ii)   Imports have been completely removed from the licensing fold.
      (iii) Steep reduction in import tariffs on a number of items, including capital
            goods.
      (iv) Simplification of procedure for promoting exports.
      (or any other correct point)
      [ 2 marks for explanation of each (1 mark for each change and minimum
      two changes in each.) ]                                              2+2 = 4 marks

12.   Yes, by delegation of Authority.
      The three things that a manager should keep in mind are:
      (i)    Deliberately and consciously entrusting the task that leads to responsibility.
      (ii)   Granting of sufficient powers which lead to authority.
      (iii) Developing a mechanism to see that the work is done as per expectation
            which leads to accountability.
      (1 mark for naming the technique + ½ mark for heading + ½ mark for
      explanation)                                                 1+(1×3) = 4 marks

13.   Functions of Stock Exchange : (Any four)
      (i)    Liquidity-To provide liquidity to investments.
      (ii)   Valuation of securities-To help in correct valuation of securities.
      (iii) Better allocation of capital-contribute to better allocation of capital.
      (iv) Promotes the habit of saving and investment— Promotes the habit of
           saving and investment in general public.


                                                   157
      (v) Safety of dealing-Provides safety for dealings in securities.
      (vi) Barometer of progress-It acts as barometer of progress of economy.
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark for correct explanation)                             1×4 = 4 marks

14.   Advantages of Time-Rate System of wage payment – (Any four)
      (1) Simple to calculate
      (2) Guarantees minimum remuneration to an employee
      (3) Greater attention to quality
      (4) Reduces damage of tools and equipments
      (5) Less administrative attention
      (6) Can be used when work is not standardized
      (½ mark for naming + ½ mark each for explanation)                                1×4 = 4 marks

15.   Differences between 'Primary' & 'Secondary' markets.
               Basis           Primary Market              Secondary Market
       (i)     Sale of         Securities are sold        Company is not involved
               Securities      by the company to          in sale of securities.
                               the investors directly.    Ownership is exchanged
                                                          between investors.
       (ii)    Capital         Directly promotes           Indirectly promotes
               Formation       capital formation           capital formation.
       (iii) Determination     By the management           By demand and supply
             of price          of the company.             for the security.
       (iv) Location           No fixed geographical       Located at specific place
                               location.
      (1 mark for each correct distinction)                                            1×4 = 4 marks

16.   Techniques of ‘Scientific Management’ : (Any five)
      (i)     Functional foremanship              (ii)   Standardization of work
      (iii) Simplification of work                (iv)   Fatigue study
      (v) Motion study                            (vi)   Method study
      (vii) Time study                            (viii) Differential wage system
      (ix) Mental revolution
      (½ mark for naming + ½ mark for correct explanation)                             1×5 = 5 marks


                                                   158
17.   Importance of management can be explained with the help of the following
      points: (Any five)
      (i)    Management provides effectiveness to human efforts.
      (ii)   Contributes to economic development.
      (iii) Sets harmony and brings order to endeavour.
      (iv) Provides judgement and vision.
      (v) Helps in achieving group goals.
      (vi) Integrates with the dynamic environment.
      (Or any other correct point)
      (½ mark for naming +½ mark for correct explanation)                           1×5 = 5 marks

18.   Planning and controlling are inter-related and interlinked activities:
      (1) Without planning there is no basis for controlling as we have to compare
          actual performance with planned performance.
      (2) The controlling function is performed to see that commitments under the
          plans are fulfilled or not.
      (3) Controlling helps in the adoption of new plans and revision of existing
          plans on the basis of comparison of actual performance against standards.
      (4) Both are looking ahead which shows their interlinkage.
      (5) Planning and controlling are interlinked and interdependent as planning gets
          its importance only with the controlling function and controlling ends and
          starts with the new plans.
      (Any answer covering the above points to be given due consideration.) 1×5 = 5 marks

19.   Factors affecting dividend policy: (Any five)
      (1) Financial requirement of company.
      (2) Stability of dividends.
      (3) Capital market considerations.
      (4) Preferences of share holders.
      (5) Legal restrictions and constraints on paying dividends.
      (6) Bonus shares
      (7) Inflation.
      (½ mark for naming +½ mark for correct explanation)                           1×5 = 5 marks


                                                 159
20.   Name of the technique is – Premium or gifts
      Other techniques of sales promotion are : (Any two)
      (i)     Rebates
      (ii)    Discounts
      (iii) Refunds
      (iv) Quantity deals
      (v) Free samples
      (vi) Contests
      (vii) Packaged premium
      (viii) Free in mail premiums
      (ix) Container premium
      (1 mark for the technique + ½ mark for naming + ½ mark for explanation
      + 1 mark for each example 2×2 = 4 marks)                             1×4 = 5 marks

21.   Policies – Policies are general statements which guide or channelise thinking in
      decision-making.
      Procedures – Procedures are guides to action, rather than to thinking and they
      detail the exact manner in which certain activities must be accomplished.
      Difference : (Any four)
               Basis        Policy                          Procedure
       (i)     Meaning      A guide to thinking &           A guide to action and
                            decision-making.                contains steps to be
                                                            taken in a cronological
                                                            corder.
       (ii)    Origin       It is derived from objectives   It is derived from policies
                            of the enterprise.              of the enterprise.
       (iii) Flexibility    It is flexible.                 It is more or less rigid.
       (iv) Expression Expressed in the form of             Expressed in more
                       general statement.                   specific terms.
       (v)     Scope for    Leaves some scope               Gives no discretion
               discretion   for manager’s                   to person concerned
                            discretion.                     with its implementation.
      (No mark is to be deducted if basis are not given)
      (1 mark for each correct explanation of Policy & procedure)
      + (1 mark for each correct difference 1×4 = 4 marks)                                2+4 = 6 marks


                                                  160
                                               OR
      Rules – Rules are specific statements to guide the behaviour and leave no
      scope for discretion.
      Methods – Methods are standardized ways of performing routine and repetitive
      jobs. They reduce confusions and bring efficiency and economy in operations.
      Differences : (Any four)
              Basis                   Rules                       Methods
      (i)     Meaning       Guidelines to behaviour.       Guidelines stating the way
                                                           of accomplishing the jobs.
      (ii)    Purpose       Ensures discipline             Increases efficiency of
                                                           operations.
      (iii) Effect of       Penalty attached to violation. No penalty for violation.
            violation
      (iv) Relation.        Relates to behaviour of        Relates to physical and
                            human beings.                  other tasks.
      (v)     Flexibility   Generally rigid statement.     Flexible statements for
                                                           guiding and controlling
                                                           operations.
      (No mark is to be deducted if basis are not given)
      (1 mark for each correct difference 1×4 = 4 marks)                                2+4= 6 marks

22.   Functional Structure – is formed by grouping together the entire work to be
      done into major functional departments.
      Advantages –(Any two)
      1.     Efficiency in operations through specialization.
      2.     Easy supervision
      3.     Better coordination.
      Limitations–(Any two)
      1.     Specialist may not be able to see the perspective of the organization as a
             whole.
      2.     Lack of coordination within the department.
      3.     Conflicts between managers.
      4.     Difficulty in establishing accountability.
      (2 marks for correct meaning + 1 mark for each advantage and
      1 mark for each disadvantage 1×2 = 2 marks)                                    2+2+2 = 6 marks


                                                    161
                                             OR
      Divisional Structure – Large diversified organizations are grouped into a
      number of divisions on the basis of different products manufactured or
      geographical areas.
      Advantages –(Any two)
      1.    Activities related with one product can be easily integrated and coordinated
      2.    Decision making is faster and effective
      3.    Performance of individual products can be assessed easily.
      Limitations –(Any two)
      1.    Duplication of efforts among its division.
      2.    Each deptt. focuses on their own product without thinking of organization.
      (2 marks for corret meaning+1 mark for advantage each 1×2 = 2 marks
      +1 mark for limitation each 1×2 = 2 marks)                      2+2+2 = 6 marks

23.   (i)   Profit Sharing – It is a system under which workers are given a share in
            the profits of the organization to provide incentives for higher productivity
            and greater profitability.
      (ii) Co-partnership – In this system the workers are given, apart from the
           share in the profits of the company, a share in the ownership of the
           company as well.
      (iii) Suggestion System – Suggestion system offers monetary incentives to
            employees for suggestions that result in either increased profits or reduced
            costs.
      (2 marks for correct explanation of each Incentive)                                2×3 = 6 marks

                                             OR
      Internship – It enables good balance between theory and practice. It is a
      practical training for understanding the application of theoretical knowledge.
      Usually stipend is paid to the students. A joint programme of training is conducted
      by technical institutes and business organizations.
      Vestibule Training – Employees learn their jobs on the equipment they will be
      using, but the training is conducted away from the actual work floor.
      Job Rotation – The trainees move from one job to another to understand
      different activities and with time develops into a multi-utility employee. It is used
      for freshers to learn by doing.
      (2 marks for correct explanation of each type of Training)                         2×3 = 6 marks


                                                  162
24.   Rights of a Consumer : (Any six)
      (i) Right to safety:
      (ii) Right to be informed:
      (iii) Right to choose:
      (iv) Right to be heard for representation:
      (v) Right to seek redressal:
      (vi) Right to consumer education:
      (vii) Right to basic needs
      (viii) Right to healthy environment:
      (½ mark for naming + ½ for correct explanation)                               1×6 marks
                                          OR
      Six responsibilities of a consumer :
      (1) Consumer must exercise his rights.
      (2) Consumer should be cautious.
      (3) Filing complaint for the redressal of genuine grievances.
      (4) Consumer must be quality-conscious.
      (5) Advertisements often exaggerate.
      (6) Insist on cash memo.
      (½ mark for naming + ½ mark for correct explanation of each
      responsibility)                                                           1×6 = 6 marks

25.   Objectives of Marketing Management :
      (i)   Creation of demand
      (ii) Market share
      (iii) Goodwill
      (iv) Profitable sales volume through customer
      (½ mark for naming + 1 mark for correct explanation of each objective)
                                                                         1½×4 = 6 marks
                                    OR
      Factors to be considered before taking a decision of a particular medium of
      advertising: (Any four)
      (i) Selectivity                   (ii)   Coverage
      (iii) Flexibility                 (iv) Cost
      (v) Editorial environment          (vi)   Permanence
      (½ mark for naming + 1 mark for correct explanation of each factor) 1½×4=6 marks


                                                163
                                 QUESTION PAPER CODE 66/1
                           EXPECTED ANSWERS/VALUE POINTS

1.   Management as process :
     A series of steps including planning , organizing , staffing , directing and controlling
     the activities of an organization to accomplish predetermined objectives.                     2 Marks

2.   Principle: - Unity of Command
     Consequences (Any one)
     (i)    It leads to conflicts amongst superiors.
     (ii)   Confusion in the mind of subordinates.
     (iii) Difficulty in fixing of responsibility.
     (iv) Excuse for not doing work by subordinates.                                            1+1=2 Marks

3.   Leadership involves securing willing cooperation of subordinates by influencing
     their behaviour towards realization of specified goals.                                       2 Marks

4.   Financial Management is concerned with efficient acquisition and allocation
     of funds. In operational terms it is concerned with management of flow of funds
     and involves decisions relating to procurement of funds, investment of funds in
     long and short term assets and distribution of earning to owners.
     [1 mark is to be awarded to incomplete meanings like :
     Planning, Organizing, Directing and Controlling the Financial activities of an
     organization.
                                              OR
     It means taking Financing, Investment and Dividend decisions.]                                2 Marks

5.   Price Mix involves different Pricing Methods Pricing strategies, Pricing Policies
     and Price Changes
     (Or any other correct explanation)
     (explanation of any two components)                                                            2 marks

6.   Economic environment
     It consists of Gross National Product, Corporate profits, inflation rate, interest
     rate, tax rate, Balance of Payment, employment rates, consumer income, debt
     and spending etc. It has strong influence over organizational policies and actions.
     (Any four factors)
     (1 mark + ½×4= 2 marks)                                                                    1+2=3 Marks


                                                     164
7.    Any three advantages:
      1.    Ensures Systematic and orderly flow of information and ideas
      2.    Source of communication can be easily located
      3.    Support to authority of superiors over subordinates
      4.    Responsibility of action can be fixed
      5.    Control is facilitated
      (Due credit is to be given for writing the headings only)
      (No mark is to be deducted for not writing the headings)                    1+1+1=3 marks

8.    Horizontal communication
      (1) Necessary to coordinate different activities
      (2) To resolve interrelated problems of two or more depts.
      (1+2 marks)                                                                 1+ 2 = 3 marks

9.    Causes of Undercapitalization: (Any three)
      1.    Underestimation of earnings.
      2.    Floatation of a company during depression.
      3.    Conservative dividend policy.
      4.    Very high efficiency.
      5.    Wrong depreciation policy.
      (No mark is to be deducted for not writing the headings)
      (½ mark for heading + ½ mark for correct explanation for each)               1×3 = 3 marks

10.   Functions of packaging – (Any three)
      (i)   Protection: It protects the product from damages en route to the market.
      (ii) Identification: By packaging, products can be easily identified.
      (iii) Convenience: Packaging is convenience enhancer both for the middlemen
            and consumer to store and transport.
      (iv) Promotion: A silent salesman Package can grab attention, describe product
           contents and induce customers to make a purchase.
      (v) Innovation: innovative packages can capture new customer segments.
      (Or any other correct function)
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark for correct explanation)                         1×3 = 3 marks


                                                165
11.   Customer Focus- Increasing attention to customer needs and their satisfaction
      has brought a tremendous change in nature and quality of products offered to
      customers today. Better quality, packaging and performance of products provide
      products exceeding consumer expectation.
      Technology - Use of latest technology is a key factor in the success of companies.
      Manufacturers strive to upgrade quality and reduce cost through technology.
      (2 marks for correct explanation of each)                                              2+2=4 marks

12.   Yes, by delegation of authority.
      The three things that a manager should keep in mind are:
      (i)   Deliberately and consciously entrusting of the task that leads to
            responsibility.
      (ii) Granting of sufficient powers which lead to authority.
      (iii) Developing a mechanism to see that the work is done as per expectation
            which leads accountability.
      (1 mark for heading + ½ mark for naming + ½ mark for explanation for each)
                                                                                   1 +(1x 3) =4 marks
13.   Primary market – is a market in which securities are sold for the first time.
      It deals with the issue of fresh securities and therefore is also referred to as new
      issue market. In a primary market the securities are issued by the company
      directly to the investors
      Secondary Market – The market for the sale and purchase of the previously
      issued securities is known as secondary market. In this market, existing securities
      are traded. The securities are not issued by the company directly to the investors
      in this market. It is also known as stock exchange.
      (2 marks for each correct meaning)                                               2 + 2= 4 marks

14.   Disadvantages of Piece Rate System: (Any four)
      1.    Danger of sacrificing the quality and safety.
      2.    Resistance from workers and opposition from Trade Unions.
      3.    Not suitable for setting up group incentive plans.
      4.    No minimum remuneration.
      5.    May affect health and efficiency of workers.
      6.    Wastage of raw material and machinery
      (If an examinee has given only the headings due credit is to be given)
      (No mark is to be deducted for not writing the headings)
      (1 mark for each correct disadvantage)                                               1×4= 4 marks


                                                  166
15.   Difference between Capital Market and Money market :

           Basis                  Capital Market               Money Market
           Expected return        Instruments lead to a        Lower returns.
                                  higher returns
           Safety                 Instruments are relatively   The risk is less. (Safer)
                                  more risky. (Less safe)
           Instrument             Main instruments for         The major instruments are
                                  capital market are           short term debts, T-bills,
                                  equity, preference shares,   trade bills, commercial
                                  debenture bonds.              papers etc
           Liquidity              They are less liquid as      They are more liquid.
                                  compared to Money
                                  Market.

      (1 mark for each correct distinction)                                                1×4 = 4 marks

16.   Any five principles:
      1.     Science, not rule of thumb – scientific enquiry with cause and effect
      2.     Harmony, not discord – Group action with mutual give and take and
             proper understanding
      3.     Co-operation- not individualism – Co- operation, mutual confidence, sense
             of goodwill
      4.     Maximum, not restricted output – Continuous increase in production
      5.     Separation of planning and operational work – Planning function should be
             separate from operation.
      6.     Scientific Selection and training
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark each for correct explanation)                            1×5 = 5 marks

17.   Features of Management              (Any five)
      1.     Achieving organizational objectives.
      2.     Distinct activity.
      3.     Group efforts.
      4.     Intangible.
      5.     Influences behaviour.
      6.     Composite process.


                                                    167
      7.   Coordinating force.
      8.   Working with and through others.
      9.   Balancing effectiveness and efficiency.
      10. Pervasive
      11. Continuous
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark each for correct explantion)                          1× 5=5 marks

18.   Control is important for many reasons: (Any five.)
      1.   Helps the organization in achieving objectives.
      2.    Helps in improving adaptability to environmental changes.
      3.   Helps in coping with organization complexity.
      4.   Controlling helps in maintaining and improving quality.
      5.   Controlling helps in financial matters.
      6.   Helps in improving employees’ performance.
      7.   Helps in monitoring sales.
      8.   Helps in minimizing errors and deviations.
      (½ mark for naming + ½ mark each for correct explanation)                       1×5 = 5 marks

19.   Factors affecting capital structure (Any five)
      1.   Financial leverage- A financial manager must examine in detail how the use
           of proposed financing mix will affect the risk and return of the owners.
      2.   Cash flow ability- Ability of the business to generate enough cash flow to
           meet its fixed commitment like interest payment on debts. raised.
      3.   Control-If shareholders want to retain the control they will prefer to employ
           debt and preference capital. The control will be diluted if additional funds
           are raised through issue of equity, as equity shareholders have a right to
           vote.
      4.   Flexibility: Composition of capital structure should be flexible enough to
           change as per the company’s requirement and operation.
      5.   Market conditions:-. Depending upon the economic conditions, investors
           may be cautious in their dealing and not be ready to take unnecessary risk
           by purchasing the shares.
      6.   Legal framework: - A company has to operate in the frame work provided
           by law.


                                                168
      7.   Floatation costs: - Capital structure also depends upon the cost to be
           incurred on raising of funds.
      (No mark is to be deducted for not writing the headings)
      (½ mark for naming + ½ mark each correct explanation)              1+1+1+1+1 = 5 marks

20.   Name of technique is- Rebate
      Other techniques are (Any two with examples)
      1. Discount 2. Refund 3. Premium or gifts 4. Quantity deals 5. Sampling/ Free
      samples 6. Contests 7. Free in-mail premiums 8. Package premium 9. Container
      premium.
      (One mark to be deducted if example is not given)
      [1 mark for technique + (½ for naming + 1½ for explanation with
      examples) = 2]                                              1+2+2= 5 marks

21.   Process of Planning :
      1.   Define organizational objectives.
      2.   List alternative ways.
      3.   Develop premises on which to base each alternative.
      4.   Choose the best alternative for reaching objectives.
      5.   Formulation of supportive plans.
      6.   Put the plans into action & follow up
      (One mark to be deducted if sequence is not followed.)
      (½ mark for naming + ½ mark each for explanation)                          1×6 = 6 marks
                                           OR
      Importance of Planning :
      1.   Offsetting uncertainty and change.
      2.   Focusing attention on objectives.
      3.   Gaining economical operation.
      4.   Establishing coordinated efforts.
      5.   Encourages innovations and creativity.
      6.   Facilitating control.
      (No mark is to be deducted for not writing the headings)
      (½ mark for each correct point + ½ each for correct explanation)           1×6 = 6 marks


                                                169
22.   Functional Structure – is formed by grouping together the entire work to be
      done into major functional departments.                                                 2 marks
      Advantages –(Any two)
      1.   Experts to perform specialized activities.
      2.   Supervision is facilitated.
      3.   Coordination within the dept. becomes easy.                                1×2 = 2 marks
      Limitation –(Any two)
      1. Specialist may not be able to see the perspective of the organization as a
          whole.
      2. Lack of coordination within the dept. may lead to delay in decision
          making.
      3. Conflicts between managers.
      4. Difficulty in establishing accountability in case of problems.           1×2 = 2 marks
                                                                               2+2+2 = 6 marks
                                         OR
      Divisional Structure - is formed when large diversified organization are grouped
      into a number of divisions on the basis of different products manufactured,
      geographical areas etc.                                                                 2 marks
      Advantages –(any two)                                                           1×2 = 2 marks
      1.   Activities related with one product can be easily integrated and coordinated
      2.   Decision making is faster and effective
      3.   Performance of individual products can be assessed easily.
      Limitations –(Any two)                                                              1×2=2 marks
      1.   Duplication of efforts among its divisions.
      2.   Each department focuses on their own product without thinking of the
           organization as a whole.
                                                                                    2+2+2=6 marks
23.   Personnel Consultants – Firms of Consultants which specialize in the recruitment
      of managerial personnel and tech. personnel. They charge their fees.
      Employment Exchanges – Job seekers get their names registered in these
      exchanges and employment exchange authorities pass on the names of persons
      with minimum qualifications for considerations to the employers. They are run
      by government.
      Media Advertising – It is an important mode of recruitment. Newspapers,
      Journals, Employment news and Rozgaar Samachar, are important sources.
                                                                                    2+2+2= 6 marks


                                                170
                                            OR
      Vestibule Training – Employees learn their jobs on the equipment they will be
      using, but the training is conducted away from the actual work floor.
      Job Rotation – The trainees move from one job to another to understand
      different activities and with time develops into a multi-utility employee. Used for
      freshers to learn by doing.
      Internship – It enables a good balance between theory and practice. It’s a
      practical training for understanding the application of theoretical knowledge.
      Usually stipend is paid to the students. A joint programme of training is conducted
      by technical institutes and business organizations.
                                                                                      2+2+2= 6 marks
24.   Ways and means of consumer protection : (Any six)
      1.    Lok Adalat
      2.    Public Interest Litigation.
      3.    Environmental friendly products.
      4.    Redressal Forums and Consumer Protection councils.
      5.    National Youth Award on Consumer Protection.
      6.    Publicity Measures.
      7.    Consumer Welfare Fund.
      (½ mark for each correct point+½ mark each for correct explanation)1×6 = 6 marks

                                            OR
      Six responsibilities of consumers:
      1.    Consumer must exercise his rights.
      2.    Consumer should be cautious.
      3.    Filing complaint for the redressal of genuine grievances.
      4.    Consumer must be quality-conscious.
      5.    Advertisement often exaggerate.
      6.    Insist on cash memo.
      (½ mark for each correct point + ½ mark each for correct explanation) 1×6=6 marks

25.   (i)   Marketing Research: means application of research process in solving
            marketing problems.First, the marketers need to identify what the customer
            needs and wants are, when they are likely to buy, in what quantities they
            are to buy, from where they buy, etc. Customers tend to be different.


                                                 171
(ii)   Product Planning. The whole range of tasks that are involved in the product
       creation fall under the product planning function. The marketeer must
       take these decisions judiciously so that customer needs are met.
(iii) Buying and Assembling: Buying refers to procuring inputs from the
      environment and process them and send them again back to the environment
      in the forms of finished products for sale in the market. An assembly line
      depicts the order of operations, which are employed to assemble various
      parts one by one in order to create the final product. Thus, assembly of
      various parts of inputs is another important function of a marketeer.
      Assembling also means collecting at one place small lots purchased from
      different sources so as to economize the cost of transportation and storage.
(2 marks each for correct explanation)                                        2+2+2 = 6 marks
                                       OR
(1) Market related factors:
       (1) Nature of the market
       (2) Size of the market
       (3) Geographic concentration.
       (4) Quantity purchased by customer (volume of sales).
(2) Product related factors:
       (1) Unit value of the product.
       (2) Product complexity.
       (3) The nature of product
(3) Company related factors
       (1) Financial strength, can evolve its own channels.
       (2) Degree of control.
(If an examinee has written any six factors from the above, full credit
is to be given.)
(½ marks for each correct point + ½ mark each for correct explanation)
                                                                                1×6 = 6 marks




                                            172
                                          ACCOUNTANCY

Time allowed : 3 hours                                                               Maximum Marks : 80

     General Instructions :
     (i)   This question paper contains three parts A, B and C.
     (ii) Part-A is compulsory for all candidates.
     (iii) Candidates can attempt only one part of the remaining parts B and C.
     (iv) All parts of the questions should be attempted at one place.


                                    QUESTION PAPER CODE 67/1/1
                                            Part ‘A’ Accountancy

1.         What is meant by Guarantee of profit to a partner ?                                        2

2.         What is meant by Authorised Capital of a company ?                                         2

3.         What is an Escrow account ?                                                                2

4.         What is meant by a Debenture ?                                                             2

5.          A, B & C entered into a partnership on October 1, 2004 to share profits and
           losses in the ratio of 3:2:1. A, however personally guaranteed that C’s share of
           profit after charging interest on capitals at 5% p.a. would not be less than Rs.
           30,000/- in any year. The capital contributions were A : Rs. 3 lakhs, B : Rs. 2
           lakhs and C : Rs. 1 lakh. The profits for the period ended March 31, 2005 were
           Rs. 1,20,000/-. Show the distribution of profits.                                          3

6.         Romi Ltd. acquired assets of Rs. 20 lakhs and took over creditors of Rs. 2 lakhs
           from Kapil Enterprises. Romi Ltd. issued 8% debentures of Rs. 100 each at par
           as purchase consideration. Record necessary journal entries in the books of Romi
           Ltd.                                                                                       3

7.         (a) A, B & C are partners in a firm sharing profits in the ratio of 4:3:1. A retires
               and his share is taken up by B and C equally. Find the new profit sharing
               ratio and the gaining ratio.

           (b) The goodwill of the firm is valued at Rs. 16,000. No goodwill account
               appears in the books. Pass necessary journal entry for recording the goodwill
                  in the above mentioned case.                                                    2+2=4


                                                       173
8.    The partnership between A & B was dissolved on March 31, 2005. Their capitals
      on that date were Rs. 1,70,000 and Rs. 30,000 respectively. Rs. 1,00,000 was
      owed by the firm to A, and B owed to the firm Rs. 20,000. Creditors on that date
      were Rs. 2,00,000. The assets realised Rs. 4,50,000 exclusive of what was owed
      by B. Find the profit or loss on realisation.                                          4

9.    X. Ltd. forfeited 1000 shares of Rs. 10 each (Rs. 8 called up) for the non-payment
      of the allotment money of Rs. 5 per share including Rs. 2 as premium. Of these
      800 shares were re-issued to S at Rs. 7 per share as Rs. 8 called up. Journalise
      the above transactions in the books of X Ltd.                                          4

10.   F Ltd. issued 12% debentures of Rs. 100 each valued at Rs. 3,00,000 at a discount
      of 4%, repayable at par in equal proportions at the end of the 2nd, 4th and 6th
      year. Calculate the amount of discount to be written off at the end of each year and
      prepare ‘discount on issue of debentures account’.                                     4

11.   Anirudh Ltd. has 4,000, 8% debentures of Rs. 100 each due for redemption on
      March 31, 2005. The company has a debenture redemption reserve of
      Rs. 1,50,000 on that date. Assuming that no interest is due record the necessary
      journal entries at the time of redemption of debentures.                               4

12.   A Ltd. issued 20,000 equity shares of Rs. 10 each at a discount of Re. 1 per share
      payable as Rs. 3 on application, Rs. 3 on allotment (after discount) and Rs. 3 on
      call. The issue was oversubscribed to the extent of 15,000 shares, and the allotment
      was done as follows : (a) Applicants of 5,000 shares were given full allotment,
      (b) Other applicants of shares were allotted shares on a pro rata basis. The excess
      application money received was to be adjusted against allotment only. All moneys
      due were received with the exception of the call money on 400 shares. Pass
      necessary journal entries to record the above transactions.                            6
13.   A, B & C were partners in a firm sharing profits in the ratio of 5:3:2. On 31st
      March, 2005 their Balance Sheet was as under :
        Liabilities                   Rs. Assets                                   Rs.
        Creditors                   7,000 Buildings                            20,000
        Reserves       Rs.         10,000 Machinery                            30,000
        As Capital 30,000                 Stock                                10,000
        B’s Capital 25,000                Patents                               6,000
        C’s Capital 15,000         70,000 Cash                                 21,000
                                   87,000                                      87,000
      C died on 1st Oct. 2005. It was agreed between his executors and the remaining
      partners that :


                                                  174
      (a) Goodwill be valued at 2 years’ purchase of the average profits of the previous
          five years, which were 2001 : Rs. 15,000; 2002 : Rs. 13,000; 2003 : Rs.
          12,000; 2004 : Rs. 15,000 and 2005 : Rs. 20,000.
      (b) Patents be valued at Rs. 8,000; Machinery at Rs. 28,000; Buildings at Rs.
          30,000.
      (c) Profit for the year 2005-06 be taken as having accrued at the same rate as
          the previous year.
      (d) Interest on capital be provided at 10% p.a.
      (e) A sum of Rs. 7,750 wa”s paid to his executors immediately.
      Prepare C’s Capital Account and his executors account at the time of his death.         6
14.   A, B & C were partners in a firm sharing profits in the ratio of 5:3:2, their Balance
      Sheet on 31.3.2005 was as follows :
       Liabilities                           Rs. Assets                               Rs.
       Capitals      Rs.                         Plant                            24,000
             A : 20,000                          Furniture                         3,000
             B : 25,000                          Debtors                          14,000
             C : 12,500                  57,500 Joint Life Policy                 12,000
                                                 (Surrender Value)
       Bank Overdraft                    19,000 Bills Receivable                   9,000
       Mrs. C’s Loan                      7,000 Stock                             30,000
       Creditors                         18,000 Loan to B                         12,000
       Bills Payable                      8,500 Cash in Hand                       6,000
                                      1,10,000                                 1,10,000

      The joint life policy was for a sum of Rs. 30,000. B died on 1st April, 2005, and
      the firm was dissolved. Assets realised only 50% of its book value. Loan to B was
      adjusted against his capital. A liability for Rs. 1,500 not shown in the Balance
      Sheet, had to be paid. The expenses on realisation came to Rs. 1,500. Prepare
      the Realization Account, Partners’ Capital Accounts and Cash Account to close
      the books of the firm.                                                                  6
                                              Or
      Rohit & Suresh are in partnership sharing profits in the ratio of 2:3. On March 31,
      2005, they agree to dissolve the business. Pass necessary journal entries at the
      time of dissolution of the firm to record the following :
      (a) Realisation expenses amounted to Rs. 1,000.
      (b) Deferred revenue advertising expenditure appeared in the books at Rs.
          60,000.


                                                   175
      (c) P & L Account on the asset side of the balance sheet was Rs. 30,000.
      (d) An unrecorded asset of Rs. 3,000 was taken over by Suresh.
      (e) Liabilities amounting to Rs. 24,000 already transferred to Realization Account,
          were settled at Rs. 22,000.
      (f) Loan to Rohit was adjusted through his Capital Account, Rs. 15,000.               6
15.   Given below is the Balance Sheet of Krishna & Suresh who are partners in a firm
      sharing profits in the ratio of 3:2 :
       Liabilities                        Rs. Assets                              Rs.
       Creditors                       15,000 Plant & Machinery               30,000
       Reserves                         5,000 Patents                          5,000
       Capital Accounts :                     Furniture                        3,000
                             Rs.              Stock                           16,000
                 Krishna 30,000               Debtors                         15,000
                 Suresh 20,000         50,000 Cash                             1,000
                                       70,000                                 70,000
      On that date Mohan is admitted as a partner for l/5th share on the following terms:
      (a) He is to contribute Rs. 14,000 as his share of capital which includes his share
           of” premium for goodwill.
      (b) Goodwill is valued at 2 years’ purchase the average profits of the last 4
           years, which were Rs. 10,000; Rs. 9,000; Rs. 8,000 and Rs. 13,000
           respectively.
      (c) Plant to be written down to Rs. 25,000 and patents written up by Rs. 8,000.
      (d) A joint life policy taken in the names of the partners for Rs. 50,000 on which
           premiums have been paid, has a surrender value of Rs. 7,000.
      Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance
      Sheet of the new firm.                                                                8
                                               Or
      X, Y & Z are in partnership sharing profits in the ratio of 5:3:2. Their Balance
      Sheet on 1.1.2006, the day Y decided to retire was as follows :
       Liabilities                       Rs.        Assets                        Rs.
       X’s Capital                   30,000         Buildings                 25,000
       Y’s Capital                   20,000         Plant & Machinery         15,000
       Z’s Capital                   20,000         Investments               10,000
       General Reserve               10,000         Joint Life Policy         15,000
       Sundry Creditors               7,000         Debtors                   10,000
       Bills Payable                  3,000         Stock                      5,000
                                                    Cash                      10,000
                                     90,000                                   90,000


                                                    176
      The terms of retirement were :
      (a) Y sells his share of goodwill to X for Rs. 8,000 and to Z for Rs. 4,000.
      (b) Stock to be appreciated by 20% and buildings by Rs. 5,000.
      (c) Joint Life Policy was surrendered to the Insurance Co. for Rs. 7,000 and
          investments were sold for Rs. 22,000.
      (d) Y is paid off in cash.
      Prepare Revaluation Account, Capital Accounts of Partners and the Balance Sheet
      of the new firm.                                                                            8

                             Part ‘B’ Analysis of Financial Statements

16.    What is a Cash Flow Statement ? List any two objectives of preparing the
      statement.                                                                                  2

17.   Classify the following into cash flows from Investing activities/Financing activities
      while preparing a Cash Flow Statement :                                                     2
      (a) Redemption of Preference Shares
      (b) Sale of Fixed Assets
      (c) Receipt of Dividend
      (d) Interest Received

18.   List any three items that can be shown under the heading ‘Reserves & Surplus’ in
      a Company’s Balance Sheet.                                                                  3

19.   From the following data prepare a Statement of Profits in the comparative form

        Particulars                           31.3.2004                  31.3.2005

        Sales                                 Rs. 6,00,000               Rs. 8,00,000
        Gross Profit Ratio                     30%                       40%
        Administrative Expenses               Rs. 40,000                 Rs. 1,00,000
        Income Tax                             50%                       50%                      3

20.   (a)   From the given information calculate the stock turnover ratio :
            Sales : Rs. 2,00,000; GP : 25% on cost; Opening Stock was l/3rd of the
            value of Closing Stock. Closing Stock was 30% of sales.
      (b) A business has a current ratio of 3:1 and a quick ratio of 1.2:1. If the working
            capital is Rs. 1,80,000, calculate the total Current Assets and Stock.            2+2=4



                                                  177
21.   From the following summarised Balance Sheets of a company, calculate the Cash
      Flow from operating activities :

      Liabilities                     2004          2005 Assets               2004           2005
                                        Rs.          Rs.                        Rs.            Rs.
      Creditors                      20,000        25,000 Cash              20,000      10,000
      Bills Payable                  20,000         5,000 Investments       40,000      30,000
      Other Current Liabilities      40,000        45,000 Stock             30,000      45,000
      6% Debentures                  60,000        80,000 Debtors           30,000      40,000
      Profit & Loss A/c              80,000 1,10,000 Gross Block 1,00,000 1,40,000
                                  2,20,000 2,65,000                       2,20,000 2,65,000          6

                                              Or

      From the following statement calculate the cash generated from operating activities:
                    Statement of profit for the year ending March 31st, 2005

       Particulars                            Rs. Particulars                                 Rs.
       To Salaries                       10,000 By Gross Profit                         85,000
       To Rent                            5,000 By Profit on Sale of Machinery           5,000
       To Depreciation                   20,000 By Dividend Received                     3,000
       To Loss on Sale of Building        5,000 By Commission Accrued                    4,000
       To Goodwill Written off            8,000
       To Proposed Dividend              10,000
       To Provision for Tax              15,000
       To Net Profit                     24,000
                                         97,000                                         97,000       6


                            Part 'C' Computerised Accounting

22.   What is meant by Block Coding ?                                                                    2

23.   What does OLE stand for ?                                                                          2

24.   What are Casual Reports ?                                                                          3

25.   Outline the use of decimal places as a “property for formatting”.                              3



                                                    178
26.   Design a debit voucher with the following information :
       Date           V. No.        Code         Account              Rs.
       14.01.06          2         711001        Purchases        25,000
       14.01.06          2         711011        Carriage          1,500
       14.01.06          2         110001        Cash             26,500                          3

27.   Write the formulae for a spread sheet to compute the allowances using the following
      information.
      M/s Ratna Ltd. employs 25 persons whose salary comprises Basic Pay, Dearness
      Allowance, House Rent Allowance & City Compensatory Allowance. The following
      are the rules governing the payment.
      Dearness Allowance : Up to a Basic Pay of Rs. 10,000 - 60% of Basic Pay
      subject to a minimum of Rs. 3,000. Above Rs. 10,000 - 50% of Basic Pay subject
      to a minimum of Rs. 6,000.
      House Rent Allowance : Rs. 2,000 up to a Basic Pay of Rs. 10,000. Rs. 5,000
      up to Basic Pay of Rs. 20,000. Rs. 7,000 for Basic Pay above Rs. 20,000.
      City Compensatory Allowance : @ 10% of Basic Pay subject to a minimum of
      Rs. 500.                                                                              3+3+1=7


                                QUESTION PAPER CODE 67/1
                                      PART ‘A’ Accountancy

1.    How would you calculate interest on drawings of equal amounts drawn on the
      1st day of every month ?                                                                    2
2.    What is meant by Calls in Advance ?                                                         2
3.    What is meant by forfeiture of shares ?                                                     2
4.    What does an Irredeemable Debenture mean ?                                                  2
5.    On March 31, 2005 after the close of books of accounts, the capital accounts of
      A, B and C stood at Rs. 24,000; Rs. 20,000 and Rs. 12,000 respectively. The
      profit for the year Rs. 36,000 was distributed equally. Subsequently it was
      discovered that interest on capital @ 5% p.a. had been omitted. The profit sharing
      ratio was 2:2:1. Pass an adjustment journal entry.                                          3

6.    Mona Ltd. acquired assets of Rs. 50 lakhs and took over creditors of Rs. 5 lakhs
      from Ram Enterprises. Mona Ltd. issued 8% Debentures of Rs. 100 each at a
      premium of 25% as purchase consideration. Record necessary journal entries in
      the books of Mona Ltd.                                                                      3


                                                 179
7.    (a) A and B are partners in a firm sharing profits in the ratio of 3 : 2. C is
          admitted as a partner. A and B surrender 1/2 of their respective share in
          favour of C. Find the new profit sharing ratio and also the sacrificing ratio.
      (b) C is to bring his share of premium for goodwill in cash. The goodwill of the
          firm is estimated at Rs. 40,000. Pass necessary entries for the record of
          goodwill in the above case.                                                         2+2=4

8.    The partnership between M and N was dissolved on March 31, 2005. Their
      capitals on that date were Rs. 1,70,000 and Rs. 30,000 respectively. Rs. 1,00,000
      was owed by the firm to M, and N owed to the firm Rs. 50,000. Creditors on that
      date were Rs. 3,00,000. The assets realised Rs. 5,80,000 exclusive of what was
      owed by N. Find the profit or loss on realisation.                                          4

9.    Y Ltd. forfeited 1,500 shares of Rs. 10 each (Rs. 7 called up) for the non-payment
      of the allotment money of Rs. 4 per share including Re. 1 as premium. Of these
      1,000 shares were re-issued to M at Rs. 6 per share as Rs. 7 called up. Journalise
      the above transactions in the books of Y Ltd.                                               4

10.   Z Ltd. issued 12% debentures of Rs. 100 each valued at Rs. 4,00,000 at a discount
      of 6%, repayable at par in equal proportions at the end of the 2nd, 4th and 6th year.
      Calculate the amount of discount to be written off at the end. of each year and
      prepare Discount on Issue of Debentures Account.                                            4

11.   Rohit Ltd. purchased for cancellation 1000 of its own 8% debentures of Rs. 250
      each at Rs. 200 per debenture. The Board of Directors have also decided to
      transfer the required amount to Debenture Redemption Reserve Account. Journalise
      the transactions in the books of Rohit Ltd. .                                               4

12.   A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On
      31st March, 2005 their Balance Sheet was :
       Liabilities                       Amount Assets                        Amount
                                            Rs.                                  Rs.
       Creditors                          7,000 Buildings                      20,000
       Reserves                          10,000 Machinery                      30,000
       Capital Accounts :                       Stock                          10,000
          A        30,000                       Patents                         6,000
          B        25,000                       Debtors                         8,000
          C        15,000                70,000 Cash                           13,000

                                         87,000                                87,000


                                                  180
      B died on 1st October, 2005. It was agreed between his executors and the remaining
      partners that:
      (a) Goodwill be valued at 2 years’ purchase of the average profits of the previous
          five years, which were 2001 : Rs 15,000; 2002 : Rs. 13,000; 2003 :
          Rs. 12,000; 2004 : Rs. 15,000 and 2005 : Rs. 20,000.
      (b) Patents be valued at Rs. 8,000; Machinery at Rs. 28,000; Buildings at Rs.
          30,000.
      (c) Profit for the year 2005 - 06 be taken as having accrued at the same rate as
          the previous year.
      (d) Interest on capital be provided at 10% p.a.
      (e) A sum of Rs. 4,250 was paid to his executor's immediately.
      Prepare B’s Capital Account and his executor's account at the time of his death.       6

13.   A Ltd. issued 20,000 equity shares of Rs. 10 each at a discount of Re. 1 payable
      as Rs. 3 on application, Rs. 3 on allotment (after discount) and Rs. 3 on call. The
      issue was oversubscribed to the extent of 15,000 shares, and the allotment was
      done as follows : (a) Applicants of 5,000 shares were given full allotment,
      (b) other applicants of shares were allotted shares on a pro rata basis. The excess
      application money received was to be adjusted against allotment only. All moneys
      due were received with the exception of the call money on 600 shares. Pass
      necessary journal entries to record the above transactions.                            6

14.   A, B and C were partners, sharing profits in the ratio of 5 : 3 : 2. Their Balance
      Sheet on 31.3.2005 was as follows :
       Liabilities                 Amount Assets                                   Amount
                                      Rs.                                             Rs.
       Capital Accounts :                    Plant                                  24,000
                A      20,000                Furniture                               3,000
                B      25,000                Debtors                                14,000
                C      12,500      57,500 Joint Life Policy (Surrender Value)       12,000
       Bank Overdraft              19,000 Bills Receivable                           9,000
       Mrs. C’s Loan                 7,000 Stock                                    30,000
       Creditors                   18,000 Loan to B                                 12,000
       Bills Payable                 8,500 Cash in hand                              6,000
                                 1,10,000                                         1,10,000



                                                 181
      The Joint Life Policy was for a sum of Rs. 30,000. B died on 1st April, 2005, and
      the firm was dissolved. Assets realised only 50% of its book value. Loan to B was
      adjusted against his capital. A liability for Rs. 1,500 not shown in the Balance
      Sheet had to be paid. The expenses on realisation came to Rs. 2,500. Prepare the
      Realization Account, Partners’ Capital Accounts and Cash Account to close the
      books of the firm.                                                                     6
                                             OR
      Rohit and Suresh are in partnership, sharing profits in the ratio of 2 : 3. On March
      31s 2005, they agree to dissolve the business. Pass necessary journal entries at
      the time of dissolution to record the following :
      (a) Realisation expenses amounted to Rs. 2,000.
      (b) Deferred revenue advertising expenditure appeared at Rs. 60,000.
      (c) P&L Account on the Assets side of the Balance Sheet was Rs. 30,000.
      (d) An unrecorded asset of Rs. 3,000 was taken over by Suresh.
      (e) Liabilities amounting to Rs. 24,000, already transferred to Realization Account,
          were settled at Rs. 22,000.
      (f) Loan to Rohit was adjusted through his Capital Account, Rs. 15,000.                6

15.    Given below is the Balance Sheet of Krishna and Suresh who are partners in a
      firm sharing profits in the ratio of 3 : 2 :

       Liabilities                     Amount Assets                             Amount
                                          Rs.                                       Rs.
       Creditors                       15,000 Plant & Machinery                  30,000
       Reserves                          5,000 Patents                             5,000
       Capital Accounts :                        Furniture                         3,000
       Krishna         30,000                    Stock                           16,000
       Suresh          20,000          50,000 Debtors                            15,000
                                                 Cash                              1,000
                                       70,000                                    70,000

      On that date Mohan is admitted as a partner for 1/5 share on the following terms:
      (a) He is to contribute Rs. 14,000 as his share of capital which includes his share
          of premium for goodwill.
      (b) Goodwill is valued at 2 years’ purchase of the average profits of the last 4
          years, which were Rs. 10,000; Rs. 9,000; Rs. 6,000 and Rs. 13,000
          respectively.


                                                  182
      (c) Plant to be written down to Rs. 25,000 and patents written up by Rs. 8,000.
      (d) A Joint Life Policy taken in the names of the partners for Rs. 50,000 on
           which premiums have been paid, has a surrender value of Rs. 5,000.
      Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance
      Sheet of the new firm.                                                                     8
                                            OR
      X, Y and Z are in partnership sharing profits in the ratio of 5 : 3 ; ¦ 2. Their Balance
      Sheet on 1.1.2006, the’ day Y decided to retire, was :
       Liabilities                        Amount Assets                             Amount
                                             Rs.                                       Rs.
       X’s Capital                         30,000    Buildings                       25,000
       Ys Capital                          20,000    Plant & Machinery               15,000
       Z’s Capital                         20,000    Investments                     10,000
       General Reserve                     10,000    Joint Life Policy               15,000
       Sundry Creditors                     7,000    Debtors                         10,000
       Bills Payable                        3,000    Stock                            5,000
                                                     Cash                            10,000
                                           90,000                                    90,000
      The terms of retirement were :
      (a) Y sells his share of goodwill to X for Rs. 3,000 and to Z for Rs. 4,000.
      (b) Stock to be appreciated by 20% and buildings by Rs. 5,000.
      (c) Joint Life Policy is surrendered to the Insurance Co. for Rs. 5,000 and
            investments were sold for Rs. 22,000.
      (d) Y is paid off in cash.
      Prepare Revaluation Account, Capital Accounts of Partners and the Balance Sheet
      of the new firm.                                                                           8
                                        PART B
                           (Analysis of Financial Statements)
16.   What is a Cash Flow Statement ? List any two uses of preparing the Cash Flow
      Statement.                                                                                 2
17.   Classify the following into cash flows from investing activities/financing activities
      while preparing a Cash Flow Statement :                                                    2
      (a) Redemption of debentures
      (b) Sale of fixed assets
      (c) Receipt of Dividend
      (d) Interest Received
18.   List any three items that can be shown as ‘Contingent Liabilities’ in a company’s
      Balance Sheet.                                                                             3


                                                    183
19.   From the following data prepare a Statement of Profits in the comparative form :               3
                        Particulars                     31.3.2004      31.3.2005
                                                        Rs.            Rs.
                        Sales                           8,00,000       8,00,000
                        GP ratio                        30%            40%
                        Administrative Expenses         50,000         1,00,000
                        Income Tax                      50%            50%

20.   (a) From the given information calculate the Stock Turnover Ratio :
          Sales : Rs. 2,00,000; GP : 25%; Opening Stock was 1/4th of the value of
          Closing Stock. Closing Stock was 40% of Sales.
      (b) A business has a Current Ratio of 4 : 1 and a Quick Ratio of 1.2 : 1. If the
           Working Capital is Rs. 1,80,000, calculate the total Current Assets and Stock.        2+2=4
21.   From the following summarised Balance Sheets of a company calculate the Cash
      Flow from operating activities :                                                               6
       Liabilities                     2004       2005 Assets               2004         2005
                                         Rs.        Rs.                       Rs.          Rs.
       Creditors                      20,000 25,000     Cash              20,000   30,000
       Bills Payable                  20,000 25,000     Investments       40,000   30,000
       Other Current Liabilities      40,000 45,000     Stock             30,000   45,000
       6% Debentures                  60,000 80,000     Debtors           30,000   40,000
       Profit & Loss A/c              90,000 1,10,000   Gross Block     1,10,000 1,40,000
                                   2,30,000 2,85,000                    2,30,000 2,85,000

                                           OR
      From the following statement calculate the cash generated from operating
      activities :
                   Statement of Profit for the year ending March 31st 2005
       Particulars                         Rs. Particulars                       Rs.
       To Salaries                      10,000 By Gross Profit                80,000
       To Rent                           5,000 By Profit on Sale of machinery 10,000
       To Depreciation                  20,000 By Dividend received            3,000
       To Loss on Sale of Building       5,000 By Commission accrued           4,000
       To Goodwill written off           8,000
       To Proposed Dividend             10,000
       To Provision for tax             10,000
       To Net Profit                    29,000
                                        97,000                                      97,000           6


                                                 184
                                        PART C
                                (Computerised Accounting)

16.   What is meant by Sequential Coding ?                                                       2

17.   What does OLE stand for ?                                                                  2

18.   What are On Demand Reports ?                                                               3

19.   Outline the use of the Text Align as a property for formatting.                             3

20.   Design a debit voucher with the following information :                                    3
       Date            V. No.         Code         Account              Rs.
       14/01/06           2          711001        Purchases       25,000
       14/01/06           2          711011        Carriage         1,500
       14/01/06           2          110001        Cash            26,500

21.   Write the formulae for a spreadsheet to compute the allowances using the following
      information :
      M/s Ratna Ltd. employs 25 persons whose Salary comprises Basic Pay, Dearness
      Allowance, House Rent Allowance and City Compensatory Allowance. The
      following are the rules governing the payment :
      Dearness Allowance : Upto a Basic Pay of Rs. 10,000 — 60% of Basic Pay
      subject to a minimum of Rs. 3,000. Above Rs. 10,000 — 50% of Basic Pay
      subject to a minimum of Rs. 6,000.
      House Rent Allowance : Rs. 2,000 upto a Basic Pay of Rs. 10,000; Rs. 5,000
      upto Basic Pay of Rs. 20,000; Rs. 7,000 for BasioPay above Rs. 20,000.
      City Compensatory Allowance : @ 10% of Basic Pay subject to a minimum of
      Rs. 500.                                                                             3+3+1=7.




                                                 185
                   Marking Scheme ---- Accountancy



General Instructions :


1.   The marking scheme provide general guidelines to reduce subjectivity in the marking.
     The answers given in the marking scheme are suggested answers. The content is thus
     indicative. If a student has given any other answer which is different from the one
     given in the marking scheme but conveys the same meaning, such answers should be
     given full weightage.


2.   Evaluation is to done as per instructions provided in the marking scheme. It should
     not be done according to one’s own interpretation or any other consideration –
     Marking Scheme should be strictly adhered to and religiously followed.


3.   If a question has parts, please award marks in the right hand side for each part.
     Marks awarded for different parts of the question should then be totalled up and
     written in the left hand margin and circled.


4.   If a question does not have any parts, marks be awarded in the left hand margin.


5.   If a student has attempted an extra question, answer of the question deserving more
     marks should be retained and the other answer scored out.


6.   No marks to be deducted for the cumulative effect of an error. It should be penalized
     only once.


7.   Deductions upto 25% of the marks be made if the student has not drawn formats of
     the journal and ledger and has not given the narrations.


8.   A full scale of marks 1-100 has to be used. Please do not hesitate to award full
     marks if the answers deserve it.

9.   No mark is to be deducted or awarded for writing/not writing ‘To’ and ‘By’ while
     preparing Journal and ledger accounts.



                                          186
                              QUESTION PAPER CODE 67/1/1
                          EXPECTED ANSWERS/VALUE POINTS
                                 PART A - ‘Accountancy’
1.   Sometimes a partner may be guaranteed a minimum amount of share in profit.
     Such minimum amount is called guarantee of profit.                              2 marks
2.   Authorized Capital is the maximum share capital that a company is allowed to
     issue during its lifetime                                                       2 marks
3.   2 marks to be awarded irrespective of any answer/ no answer.                    2 marks
4.   Debenture : Debenture is an instrument acknowledging a debt issued under the
     common seal of the company.
     (Or any other correct meaning)                                                  2 marks
5.    Dr.              PROFIT & LOSS APPROPRIATION A/C                       Cr.
      Particulars                  Amt.(Rs.) Particulars               Amt.(Rs.)
      Interest on capital                        P & L A/c             1,20,000
      A 7,500
      B 5,000
      C 2,500                         15,000
      Profit transferred to
      A                               52,500
      B                               35,000
      C                               17,500
                                    1,20,000                           1,20,000
     (1½ mark for providing interest on capital +1 ½ mark for distribution of profit)
                                                                          1½+1½ =3 marks.
6.                             JOURNAL OF ROMI Ltd.
      Date   Particular                      IF      Dr. Amount Cr. Amount
                                                           (Rs.)         (Rs.)
             Assets                     Dr.           20,00,000
                   Creditors                                         2,00,000      1½ marks
                   Kapil Enterprises                                18,00,000
             (The purchase of assets
             and liabilities form Kapil
             Enterprises)
                Kapil Enterprises         Dr.            18,00,000
                    8% Debentures                                     18,00,000     1½ marks
                (The issue of 18,000 8%
                debentures at par)

                                                                            1½+1½ = 3 Makrs


                                                187
7.   (a) Old ratio between A, B and C = 4:3:1

           A’s share taken by B

           A’s share taken up by C


           B’s new share


           C’s new share

           New profit sharing ratio = 5 : 3                                                1 mark
           Gained share = New share – Old share

           B gains

           C gains

           Therefore,     Gaining ratio = 1 : 1                                            1 mark
           Note: If gaining ratio is written as 1:1 without calculating, no marks should
           be deducted.
     (b)                                    JOURNAL
           Date   Particular                     IF         Dr. Amount      Cr. Amount
                                                                  (Rs.)           (Rs.)
                  B’s capital A/c             Dr.                4,000
                  C’s capital A/c             Dr.                4,000
                       A’s Capital A/c                                           8,000     2 marks
                  ( A’s share of goodwill
                  credited to his account
                  on retirement)
                                                                                   1+1+2 = 4 marks
8.    Dr.                               Realization A/c                            Cr.
      Particulars                  Amount (Rs.) Particulars               Amount (Rs.)
      Sundry Assets                  4,80,000 Creditors                     2,00,000
      Bank-payment of                2,00,000 Bank –assets                  4,50,000       2 marks
            creditors                                   realized
                                                 Loss transferred to:
                                                 A’s Capital 15,000
                                                 B’s Capital 15,000             30,000
                                     6,80,000                                 6,80,000


                                                    188
     Working Notes:
                           MEMORANDUM BALANCE SHEET
                                  As on 31.3.05
      Liabilities                Amount (Rs.)   Assets                  Amount (Rs.)
      Capitals                                  B’s loan                     20,000
        A 1,70,000                              Sundry Assets              4,80,000       2 marks
        B 30,000                     2,00,000   (bal. fig.)
      A’s loan                       1,00,000
      Creditors                      2,00,000
                                     5,00,000                              5,00,000
     Note: 1 mark to be deducted if profit on realization has been calculated without
     preparing Realization A/c
                                                                                      2+2 = 4 marks
9.                                  JOURNAL OF X LTD.
      Date      Particular                           IF Dr. Amount Cr. Amount
                                                                 (Rs.)          (Rs.)
                Share Capital A/c               Dr.             8,000
                Securities PremiumA/c           Dr.             2,000
                     Share forfeitureA/c                                       5,000
                     Share allotment/ calls-in-                                5,000        2 marks
                       arrears/ Unpaid calls A/c
                (1,000 shares forfeited for
                non payment of allotment
                money of Rs.5 including
                premium)
                    Bank A/c                    Dr.             5,600
                    Share forfeitureA/c         Dr.               800          6400        1 mark
                         Share Capital a/c
                    (800 share reissued @ Rs.
                    7 per share)
                    Share forfeiture A/c        Dr.             3,200
                         Capital Reserve                                       3,200       1 mark
                    (The share forfeiture
                    amount transferred to
                    capital reserve)
                                                                                  2+1+1 = 4 marks


                                                 189
10.                   Table showing calculation of discount to be written off
      Year       Debentures outstanding     Ratio             Discount written off
      1          3,00,000                      3              3/12 x 12,000 = 3,000
      2          3,00,000                      3              3/12 x 12,000 = 3,000
      3          2,00,000                      2              2/12 x 12,000 = 2,000
      4          2,00,000                      2              2/12 x 12,000 = 2,000
      5          1,00,000                      1              1/12 x 12,000 = 1,000
      6          1,00,000                      1              1/12 x 12,000 = 1,000
                                             12
                                          OR
      Year      Debentures    Ratio   Discount written                Discount written
                outstanding           off                             off each year
      1-2       3,00,000         3    3/6 x 12,000 = 6,000            6,000/2=3,000
      3-4       2,00,000         2    2/6 x 12,000 = 4,000            4,000/2=2,000              1 mark
      5-6       1,00,000         1    1/5 x 12,000 = 2,000            2,000/2=1,000
                                 6
      Dr.                      Discount on issue of Debentures A/c                        Cr.
      Date         Particulars        Amount Date          Particulars                Amount
                                         (Rs.)                                          (Rs.)
      1st yr.      12% Debentures      12,000 1st yr.      P&L A/c                     3,000
                                                           Balance c/d                 9,000
                                       12,000                                         12,000
      2nd yr.      Balance b/d            9,000     2nd yr.         P&L A/c              3,000
                                                                    Balance c/d          6,000
                                          9,000                                          9,000 ½ mark
                                                                                               for each
      3rd yr.      Balance b/d            6,000     3rd yr.         P&L A/c              2,000
                                                                                               year
                                                                    Balance c/d          4,000
                                                                                               =½×6
                                          6,000                                          6,000 =3 marks
      4th yr.      Balance b/d            4,000     4th yr.         P&L A/c              2,000
                                                                    Balance c/d          2,000
                                          4,000                                          4,000
       th                                            th
      5 yr.        Balance b/d            2,000     5 yr.           P&L A/c              1,000
                                                                    Balance c/d          1,000
                                          2,000                                          2,000
      6th yr.      Balance b/d            1,000     6th yr.         P&L A/c              1,000
                                          1,000                                          1,000

                                                                                          3+1 = 4 marks
                                               190
11.                          JOURNAL OF ANIRUDH LTD.

       Date   Particular                                 LF        Dr.        Cr.
                                                               Amount     Amount
                                                                 (Rs.)      (Rs.)
              P & L Appropriation A/c         Dr.              50,000
                   Debenture Redemption Reserve                            50,000
              ( Debenture Redemption Reserve
              created)
              Debenture A/c                       Dr.         4,00,000
                  Debenture holders                                       4,00,000
              (Amount of Debentures due)

              Debenture holders                   Dr.         4,00,000
                   Bank A/c                                               4,00,000
              (The amount of the debentures
              paid to the debenture holders)
              Debenture Redemption reserve        Dr.         2,00,000
                   General reserve                                        2,00,000
              (Debenture Redemption reserve
              transferred to general reserve)
      (1 mark for each correct entry)                                                1×4 = 4 marks


12.                 JOURNAL OF A LTD.
       Date   Particular                                 LF         Dr.       Cr.
                                                               Amount     Amount
                                                                  (Rs.)     (Rs.)
              Bank A/c                         Dr.            1,05,000
                  Share application A/c                                   1,05,000
              (Amount received on application)

              Share Application a/c                Dr.        1,05,000
                   Share Capital A/c                                       60,000
                   Share allotment A/c                                     45,000
              (The amount of application money
              adjusted in share capital; allotment
              balance refunded)


                                                191
            Share allotment A/c                      Dr.      60,000
            Discount on issue of shares              Dr.      20,000
                  Share capital A/c                                       80,000
            (The amount due on allotment)
            Bank A/c                                Dr.       15,000
                  Share Allotment A/c                                     15,000
            (The amount received on allotment)
            Share first and final call               Dr.      60,000
                  Share Capital A/c                                       60,000
            (The amount due on first and final call)
            Bank A/c                                 Dr.      58,800
                  Share first and final call A/c                          58,800
            (The amount received on first and final call)
                                                 OR
            Bank A/c                                 Dr.      58,800
            Calls-in-arrears A/c                     Dr.       1,200
                   Share first and final call A/c                         60,000
            (The amount received on first and
            final call)
      (1 mark for each correct entry)                                              1×6 = 6 marks
13.   Dr.                   C’s CAPITAL A/c                                Cr.
      Particulars                 Amount Particulars                   Amount
                                     (Rs.)                               (Rs.)
      C’s Executors A/c               27,750    Balance b/d            15,000
                                                Reserves                2,000
                                                Revaluation A/c         2,000
                                                P & L Suspense A/c      2,000      1×5 = 5 marks
                                                Interest on capital       750
                                                A’s Capital A/c         3,750
                                                B’s Capital A/c         2,250
                                      27,750                           27,750
      Note: No marks for balance b/d and amount transferred to C’s executors A/c.
      Dr.                          C’s Executor’s A/c                      Cr.
      Particulars                       Amount Particulars             Amount
                                          (Rs.)                          (Rs.)
      Cash A/c                           7,750 C’s Capital A/c         27,750            1 mark
      Executor’s Loan A/c or Bal c/d    20,000
                                          27,750                        27,750
      (1 mark for each adjustment entry)
                                                                                 5+1 = 6 marks


                                               192
14.   Dr.                          Realization A/c                       Cr.
      Particulars                  Amount Particulars                 Amount
                                     (Rs.)                              (Rs.)
      Plant                         24,000    Bank o/d                19,000
      Furniture                      3,000    Mrs.C’s loan             7,000
      Debtors                       14,000    Creditors               18,000
      JLP                           12,000    B/P                      8,500         4 marks
      B/R                            9,000    Cash
      Stock                         30,000    Plant       12,000
      Cash                                    Furniture 1,500
      Bank o/d 19,000                         Debtors       7,000
      Mrs.C’s loan 7,000                      JLP          30,000
      Creditors 18,000                        B/R           4,500
      B/P           8,500                     Stock        15,000     70,000
      Unrecorded                              Loss transferred to:
      liability    1,500            54,000    A’s Capital 12,500
      Cash                                    B’s Capital 7,500
      Realization                             C’s Capital 5,000       25,000
      expenses                       1,500
                                  1,47,500                           1,47,500

      Dr.                            CAPITAL ACCOUNTS                     Cr.
      Particulars       A         B       C Particulars      A      B      C
                     (Rs.)     (Rs.)   (Rs.)              (Rs.) (Rs.)   (Rs.)
      B’s loan               12000           Balance    20,000 25,000 12,500
      Realization                            b/d
      a/c-loss    12500       7,500 5,000
      Cash        7,500       5,500 7,500
                    20,000   25,000 12,500                   20,000 25,000 12,500
      (½ mark for each partner's capital A/c)                                       1½ marks
      Dr.                             Cash A/c                           Cr.
      Particulars                  Amount Particulars                Amount
                                     (Rs.)                             (Rs.)
      Balance b/d                   6,000 Realization a/c            54,000
      Realization A/c              70,000 Realisation A/c             1,500
                                           A’s Capital                7,500
                                           B’s Capital                5,500
                                           C’s Capital a/c            7,500
                                   76,000                            76,000           ½ mark
      Note: : If bank overdraft is directly transferred to Cash A/c, full credit be given.
                                                                            4+1½+½ = 6 marks


                                             193
                                      OR

                            JOURNAL OF A LTD.

Date    Particular                                     LF       Dr.    Cr.
                                                            Amount Amount
                                                              (Rs.)  (Rs.)

        Realization A/c                          Dr.         1,000
             Bank/Cash                                                1,000
        (Realization expenses paid)

        Rohit’s Capital A/c                      Dr.        24,000
        Suresh’s Capital A/c                     Dr.        36,000
             Deferred Revenue Expenditure A/c                        60,000
        (Deferred revenue expenditure
        debited to partner’s capital accounts)

        Rohit’s Capital A/c               Dr.               12,000
        Suresh’s Capital A/c              Dr.               18,000
              P & L A/c                                              30,000
        (Debit balance of P&L distributed
        to all the partners)

        Suresh’s Capital A/c                     Dr.         3,000
             Realization A/c                                          3,000
        (Unrecorded asset taken over by
        Suresh)

        Realization A/c                          Dr.        22,000
             Bank/Cash                                               22,000
        (Liabilities paid at the time of
        dissolution)

        Rohit’s Capital A/c                 Dr.             15,000
             Rohit’s Loan A/c                                        15,000
        ( Rohit’s loan adjusted through his
        Capital A/c)

(1 mark for each correct entry)                                               1×6 = 6 marks



                                           194
15.    Dr.                         Revaluation A/c                         Cr.

       Particulars                  Amount Particulars                 Amount
                                      (Rs.)                              (Rs.)
       Plant                          5,000 Patents                     8,000
       Profit transferred to
       Krishna’s Capital 1,800
       Suresh’s Capital 1,200         3,000
                                      8,000                             8,000         2 marks


       Dr.                              CAPITAL ACCOUNTS                             Cr.
       Particulars    Krishna Suresh Mohan Particulars        Krishna Suresh Mohan
                        (Rs.)  (Rs.)  (Rs.)                     (Rs.)  (Rs.)  (Rs.)
       Krishna’s                            840 Balance b/d   30,000 20,000
       capital                                  Cash                              10,000
       Suresh’s                             560 Premium        2,400    1,600
       capital                                  Reserve        3,000    2,000
       Balance c/d      38,040 25,360     8,600 Revaluation
                                                a/c            1,800    1,200
                                                Mohan’s
                                                capital          840      560
                                                (JLP)
                        38,040 25,360 10,000                  38,040 25,360 10,000

      (1 mark for each partner's capital A/c)                                    1×3 = 3 marks

                                 Balance Sheet
                                  As on ———
       Liabilities                Amount Assets                        Amount
                                     (Rs.)                               (Rs.)
       Creditors                   15,000 Cash                         15,000
       Capital a/c’s                      Debtors                      15,000
       Krishna 38,040                     Stock                        16,000
       Suresh 25,360                      Furniture                     3,000
       Mohan 8,600                 72,000 Patents                      13,000
                                          Plant & Machinery            25,000
                                   87,000                              87,000         3 marks
                                                                           2+3+3 = 8 marks


                                                195
                    ALTERNATE ANSWER
 Dr.                      Revaluation A/c                              Cr.
 Particulars             Amount Particulars                        Amount
                           (Rs.)                                     (Rs.)
 Plant                    5,000 Patents                             8,000
 Profit transferred to
 Krishna’s Capital 1,800
 Suresh’s Capital 1,200       3,000
                              8,000                                 8,000         2 marks


 Dr.                            CAPITAL ACCOUNTS                                 Cr.
 Particulars    Krishna Suresh Mohan Particulars         Krishna Suresh Mohan
                  (Rs.)  (Rs.)  (Rs.)                      (Rs.)  (Rs.)  (Rs.)
 Balance c/d     41,400 27,600 10,000 Balance b/d         30,000 20,000
                                      Cash                                    10,000
                                      Premium              2,400    1,600
                                      Reserve              3,000    2,000
                                      Revaluation
                                      a/c                  1,800    1,200
                                      (JLP)                4,200    2,800
                 41,400 27,600 10,000                     41,400 27,600 10,000

(1 mark for each partner's capital A/c)                                      1×3 = 3 marks

                           Balance Sheet
                            As on ———
 Liabilities                Amount Assets                          Amount
                               (Rs.)                                 (Rs.)
 Creditors                   15,000 Cash                           15,000
 Capital a/c’s                      Debtors                        15,000
 Krishna 41,400                     Stock                          16,000
 Suresh 27,600                      JLP                             7,000
 Mohan 10,000                79,000 Furniture                       3,000
                                    Patents                        13,000
                                    Plant & Machinery              25,000
                             94,000                                94,000         3 marks
 *Alternatively full credit be given to the students for treating the JLP
 surrender value through Revaluation A/c                                 2+3+3 = 8 marks


                                          196
                                        OR

 Dr.                                Revaluation A/c                                  Cr.

 Particulars                       Amount         Particular                      Amount
                                        (Rs.)                                       (Rs.)
 Profit transferred to :                          Stock                            1,000
 X 9,000                                          Building                         5,000
 Y 5,400                                          Investments                     12,000
 Z 3,600                            18,000

                                    18,000                                        18,000          2 marks


 Dr.                            CAPITAL ACCOUNTS                                     Cr.

 Particulars            X          Y              Z Particulars              X          Y         Z
                   (Rs.)        (Rs.)        (Rs.)                        (Rs.)      (Rs.)     (Rs.)

 Y’s capital      8,000                   4,000 Balance b/d              30,000 20,000 20,000
 Joint Life                                           General Reserve     5,000     3,000     2,000
 Policy           4,000        2,400      1,600 Revaluation A/c           9,000     5,400     3,600
 Cash                         38,000                  X’s capital                   8,000
 Balance c/d 32,000                      20,000 Z’s capital                         4,000

                 44,000       40,400     25,600                          44,000 40,400 25,600

(1 mark for each partner's capital A/c)                                                     1×3 = 3 marks

                            Balance Sheet of X and Z
                             as on 1st January 2006

 Particulars                            Amount       Particulars                  Amount
                                          (Rs.)                                     (Rs.)
 B/P                                     3,000       Cash                          1,000
 Creditors                               7,000       Stock                         6,000
 Capitals                                            Debtors                      10,000
       X       32,000                                Plant & Machinery            15,000
       Z       20,000                   52,000       Building                     30,000
                                        62,000                                    62,000         3 marks

                                                                                     2+3+3 = 8 marks


                                                  197
                       ALTERNATE ANSWER
 Dr.                                Revaluation A/c                             Cr.
 Particulars                   Amount         Particular                    Amount
                                 (Rs.)                                        (Rs.)
 Profit transferred to :                      Stock                          1,000
 X's Capital 3,000                            Building                       5,000
 Y's Capital 1,800
 Z's Capital 1,200                  6,000
                                    6,000                                    6,000          2 marks

 Dr.                          Partners' Capital Accounts                        Cr.

 Particulars          X        Y           Z Particulars               X          Y         Z
                   (Rs.)    (Rs.)       (Rs.)                       (Rs.)      (Rs.)     (Rs.)
 Y’s capital  8,000                    4,000 Balance b/d     30,000 20,000 20,000
 Loss on                                     General Reserve 5,000 3,000 2,000
 Surrender of                                Revaluation A/c  3,000 1,800 1,200
 JLP          4,000         2,400      1,600 X’s capital             8,000
 Cash                      38,000            Z’s capital             4,000
 Balance c/d 32,000                   20,000 Gain on sale of
                                             investments      6,000 3,600 2,400
                44,000     40,400     25,600                       44,000 40,400 25,600

(1 mark for each partner's capital A/c)                                               1×3 = 3 marks
                               Balance Sheet of X and Z
                                 as on 1st January 2006

 Particulars                        Amount     Particulars                  Amount
                                      (Rs.)                                   (Rs.)
 B/P                                 3,000     Cash                          1,000
 Creditors                           7,000     Stock                         6,000
 Capitals                                      Debtors                      10,000
     X     32,000                              Plant & Machinery            15,000
     Z     20,000                   52,000     Building                     30,000
                                    62,000                                  62,000         3 marks

                                                                               2+3+3 = 8 marks


                                              198
                       ALTERNATE ANSWER
                       ALTERNATE ANSWER
 Dr.                                Revaluation A/c                             Cr.
 Particulars                   Amount         Particular                    Amount
                                 (Rs.)                                        (Rs.)
 JLP                            8,000
 Profit transferred to :                      Stock                          1,000
 X's Capital 5,000                            Building                       5,000
 Y's Capital 3,000                            Investment                    12,000
 Z's Capital 2,000              10,000
                                18,000                                      18,000          2 marks

 Dr.                          Partners' Capital Accounts                        Cr.

 Particulars          X        Y           Z Particulars               X          Y         Z
                   (Rs.)    (Rs.)       (Rs.)                       (Rs.)      (Rs.)     (Rs.)
 Y’s capital  8,000                    4,000 Balance b/d     30,000 20,000 20,000
 Cash                      38,000            General Reserve 5,000 3,000 2,000
 Balance c/d 32,000                   20,000 Revaluation A/c  5,000 3,000 2,000
                                             X’s capital             8,000
                                             Z’s capital             4,000
                40,000     38,000     24,000                       40,000 38,000 24,000

(1 mark for each partner's capital A/c)                                               1×3 = 3 marks
                               Balance Sheet of X and Z
                                 as on 1st January 2006

 Particulars                        Amount     Particulars                  Amount
                                      (Rs.)                                   (Rs.)
 B/P                                 3,000     Cash                          1,000
 Creditors                           7,000     Stock                         6,000
 Capitals                                      Debtors                      10,000
     X     32,000                              Plant & Machinery            15,000
     Z     20,000                   52,000     Building                     30,000
                                    62,000                                  62,000         3 marks

                                                                               2+3+3 = 8 marks



                                              199
                                            PART B

16.   Cash Flow Statement is a statement that shows flow of cash and cash equivalents
      during a period.                                                                      1 mark
      Objectives(Any two) :-
      (a) Short term planning
      (b) To understand liquidity and solvency.
      (c) For effective cash management.
      (d) For prediction of sickness.
      (e) For comparative study.
      (f) To explain reasons for lower or higher cash position.
      (g) To test management decisions
      (h) To plan the future
      (½ mark for each objective)                                                     ½ ×2=1 mark
                                                                                      1+1=2 marks
17.   (a) Financing.
      (b) Investing
      (c) Investing
      (d) Investing.
      (½ mark each)                                                                   ½×4=2 marks
18.   Any three :
      (a) Capital reserve
      (b) Capital Redemption reserve.
      (c) Securities premium.
      (d) Surplus.
      (e) Proposed addition to reserve.
      (f) Sinking fund.
      (1 mark for each item)                                                       1×3 = 3 marks
19.                            Comparative Income Statement
                         For the years ended on 31.3.04 & 31.3.05
      Particulars                         2004         2005         Absolute    Percentage
                                          (Rs.)        (Rs.)        Increase/    increase/
                                                                    decrease     decrease
      Sales                           6,00,000      8,00,000        2,00,000       33.3
      Less: cost of goods sold        4,20,000      4,80,000          60,000      14.29
      Gross profit                    1,80,000      3,20,000        1,40,000       77.7
      Less: Administrative expenses     40,000      1,00,000          60,000        150
      Net profit before tax           1,40,000      2,20,000         80,000        57.1
      Less :tax                         70,000      1,10,000         40,000        57.1
      Net profit after tax              70,000      1,10,000         40,000        57.1
      (½ mark for each =½×6)                                                              3 marks


                                              200
20.   (a) Sales = 2,00,000

            Gross Profit =       on cost =     on sales


               Gross Profit =      ×2,00,000

               Gross Profit = 40,000
            Therefore, Cost of goods sold = Sales --- Gross Profit             (½ mark)
                                          = 2,00,000 --- 40,000
                                          = 1,60,000

            Closing stock =

                           = 60,000

            Opening stock =

                             = 20,000

            Average stock =                                                    (½ mark)


                             =

                             = 40,000

            Stock Turnover ratio =                                             (½ mark)


                                   =

                                   = 4 times                                  (½ mark)
                                                                     ½+½+½+½ = 2 marks

      (b)

            Current Assets = 3 Current liabilities
            Also Current Assets – Current Liabilities = 1,80,000




                                       = 90,000                                 1 mark


                                                     201
        Therefore, Current Assets = 90,000 × 3 = 2,70,000


        Quick ratio =




        Stock = Current Assets _ Quick assets                                                1 mark
              = 2,70,000 _ 1,08,000
              = 1,62,000
                                                                                      1+1 = 2 marks
21.   Calculation of cash flow from operating activities

         Particulars                                              Details     Amount
                                                                     Rs.         Rs.

         Net Profit before tax and extraordinary items                         30,000
         Add: Interest on debentures*                                           3,600
         Operating profit before Working capital changes                       33,600
         Add :Decrease in current assets; Increase in current
         liabilities
                 Creditors                                        5,000
                 Other current liabilities                        5,000        10,000
         Less: Increase in current assets; Decrease in current
         liabilities
               Stock                                             15,000
               Debtors                                           10,000
               Bills Payable                                     15,000      (40,000)

         Cash generated from operating activities                               3,600

         Note: In case the student has assumed that 6% Debentures of Rs. 20,000
         were issued in the beginning of the year & has added Rs. 4,800 as interest
         on 6% Debentures, full credit be given.                                            6 marks

                                          OR



                                                  202
      Calculation of cash flow from operating activities (Indirect method)
       Particulars                                                 Details      Amount
                                                                      Rs.           Rs.
       Net Profit before tax and extraordinary items                            49,000
       Add: Goodwill written off                                    8,000
               Loss on sale of building                             5,000
               Depreciation                                        20,000        33,000
       Less: Profit on sale of machinery                            5,000
               Dividend received                                    3,000        (8,000)
       Operating profit before Working capital changes                           74,000
       Less: Increase in current assets; Decrease in current
       liabilities
       Commission accrued                                                        (4,000)
       Cash from operations                                                      70,000
       Less tax paid                                                             15,000
       Cash generated from operating activities                                  55,000      6 marks

                                 ALTERNATE ANSWER
      Calculation of cash flow from operating activities (Direct method)
       Particulars                                                 Details      Amount
                                                                      Rs.          Rs.
       Operating cash receipts
       Gross Profit                                                              85,000
       Operating cash payments
       Salaries                                                    10,000
       Rent                                                         5,000        15,000
       Cash from operations                                                      70,000
       Less tax paid                                                             15,000
       Cash generated from operating activities                                  55,000      6 marks

       Note: If it has been assumed that no tax has been paid, marks should not be
       deducted.
       Cash from operating activities would then be Rs. 70,000.

                                               PART C

22.   This method is a modification of the sequential coding. The method codifies the
      entire class of objects with diverse attributes by restricting each object type to a
      specific range within the coding scheme.                                               2 marks


                                                  203
23.   OLE stands for Object Linking and Embedding. It refers to an object that could
      be a photograph, bar code image or another document created in another software
      application.                                                                            2 marks
24.   There are reports , the need for which is not anticipated, the information content of
      which may be useful but casually required. These are ad-hoc reports and are
      generated casually by executing some simple queries without requiring much of
      professional assistance. They are generated as and when required.                       3 marks
25.   This property specifies the number of decimal places upto which the control should
      display a numeric data. It must be used in conjunction with format property to
      determine the final appearance of numeric data.                                         3 marks
26.
                                       Debit Voucher
          Voucher No. : 2                                     Date: 14-Jan.2006.
          Credit Account : Cash Account.

                                       Debit Accounts
      S.No.     Code           Name of the        Amount         Narration
                                account          in rupees

      1         711001          Purchases         25,000         Purchased goods
      2         711001           Carriage          1,500         Carriage on purchases

                                   Total          26,500
      Authorized by:                                  Prepared by :                           3 marks


27.   7 marks to be awarded irrespective of any answer/ no answer.                             7 marks

                                  QUESTION PAPER CODE 67/1
                           EXPECTED ANSWERS/VALUE POINTS
                                     PART A - ‘Accountancy’

1.    Interest on drawings of equal amounts drawn on the first day of every month can
      be calculated, for a periods of 6.5 months, by applying the following formula:          2 marks




                                           OR
      Product method may also be followed.



                                                  204
2.   Calls-in-Advance means the amount received by a company from its shareholders
     in excess of the amount due form them.
     Note: Only an entry without any explanation shall not be accepted.                     2 marks
3.   Forfeiture of shares means the cancellation of allotment of shares due to non-
     payment of any call money by the shareholder.
     Note: Only an entry without any explanation shall not be accepted.                     2 marks
4.   Irredeemable Debentures are those which are not repayable during the lifetime of
     the company.                                                                           2 marks

5.                                             JOURNAL
     Working Notes:
     (1) Calculation of opening capitals
      Particulars                         A                 B                C
      Closing Capital                 24,000         20,000              12,000
      Less: Profit Credited           12,000         12,000              12,000
                                      12,000             8,000              —                1 mark

     (2) Statement of Adjustment
       Particulars                              A                 B               C
       Amount already credited           (12,000)         (12,000)         (12,000)
       Amount to be credited:
         Interest on Capital                   600               400              —
          Profit in the ratio 2:2:1       14,000            14,000           7,000
                                          14,600            14,400           7,000
       Adjustment                         +2,600           +2,400           -5,000
                                              Cr.              Cr.              Dr.          1 mark


      Date      Particulars                          LF          Debit       Credit
                                                                  Rs.          Rs.
                 C's Capital A/c               Dr.               5,000
                     To A's Capital A/c                                      2,600
                     To B's Capital A/c                                      2,400           1 mark
                 (Adjustment entry passed for
                 omission of interest on capital
                 & wrong credit of profit)

     Note: Workings in any form be accepted.                                          1+1+1=3 marks


                                                   205
6.                                     JOURNAL

      Date   Particulars                          LF   Debit Rs.   Credit Rs.

             Assets A/c                     Dr.        50,00,000
                Creditors A/c                                       5,00,000       1½ marks
                Ram Enterprises Ltd.                               45,00,000
             (Assets acquired & creditors
             taken over)

             Ram Enterprises Ltd.           Dr.        45,00,000
                 8% Debentures A/c                                 36,00,000       1½ marks
                Security Premium A/c                                9,00,000
             (Amount due settled by issue
             of 36,000 8% debentures of
             Rs. 100/- at a premium of 25%)

                                                                        1½+1½ = 3 marks

7.   (a) A’s old share =


         A’s sacrifice =


         New ratio =


         A’s new share =


         B’s old share =


         B’s sacrifice =


         B’s new share =


         C’s share =

         New profit sharing ratio = 3 : 2 : 5                                         1 mark
         Sacrificing ratio = 3:2                                                      1 mark
                                                                                1+1=2 marks


                                              206
     (b)                                     JOURNAL

      Date    Particulars                             LF     Debit Rs.        Credit Rs.
              Cash A/c                       Dr.                20,000
                 Premium A/c                                                     20,000      1 mark
              (Share of premium for goodwill
              brought in cash by C)
              Premium A/c                       Dr.             20,000
                  A’s Capital A/c                                                12,000      1 mark
                  B’s Capital A/c                                                 8,000
              (Share of premium credited to
              credited to sacrificing partners)

                                                                                       2+2 = 4 marks
8.    Dr.                               Realization A/c                             Cr.
      Particulars                   Amount Rs. Particulars                    Amount Rs
      S. Assets                       5,50,000 Creditors                       3,00,000
      Cash – creditors paid           3,00,000 Cash – assets realized          5,80,000
      Profit credited to:
      M’s capital 15,000
      N’s capital       15,000          30,000
                                      8,80,000                                 8,80,000     2 marks

     Working Notes:
                                 Memorandum Balance Sheet
                                      As on 31.3.05
      Liabilities                       Amount Assets                           Amount
                                           Rs.                                     Rs.
      Capitals:                                    Loan to N                     50,000
        M       1,70,000                           Sundry Assets (bal.fig.)    5,50,000
        N         30,000               2,00,000

      Loan from M                      1,00,000
      Creditors                        3,00,000
                                       6,00,000                                6,00,000     2 marks

     Note: 1 mark to be deducted if profit on realisation has been calculated
     without preparing Realisation A/c.                                      2+2 = 4 marks


                                                 207
9.                                    JOURNAL

     Date   Particulars                                   LF Debit Rs.   Credit Rs.
            Share Capital A/c                       Dr.        10,500
            Security Premium A/c                    Dr.          1,500
               Calls Unpaid/ Calls-in-Arrears A/c                            6,000
                Share Forfeiture A/c                                         6,000     2 marks

            (1,500 shares forfeited for non-payment
            of allotment money of Rs. 4 including
            Re 1 as premium)

                                              OR

            Share Capital A/c                       Dr.        10,500
            Security Premium A/c                    Dr.          1,500
               Share Allotment A/c                                           6,000
               Share forfeiture A/c                                          6,000

            (1,500 shares forfeited for non-payment
            of allotment money of Rs. 4 including
            Re. 1 as premium)

            Bank A/c                                Dr.          6,000
            Share forfeiture A/c                    Dr.          1,000
               Share Capital A/c                                             7,000      1 mark
            (1,000 shares reissued at Rs. 6 per share
            as Rs. 7 called up)

            Share Forfeiture A/c                    Dr.          3,000
               Capital Reserve                                               3,000      1 mark
            (Profit on reissue of shares transferred
            to Capital Reserve)

                                                                                2+1+1 = 4 marks




                                              208
10.   Calculation of Amount of Discount to be written off-

       Year end Amount of debentures outstanding in             Ratio      Amount to be
                          the beginning                                     written off
       I                         4,00,000                          3           6,000
       II                        4,00,000                          3           6,000
       III                       2,66,667                          2           4,000
       IV                        2,66,667                          2           4,000
       V                         1,33,333                          1           2,000
       VI                        1,33,333                          1           2,000               1 mark
                                                                  12


      Dr.                   Discount on Issue of Debentures A/c                        Cr.

       Date Particulars                  AmountRs.      Date     Particulars   AmountRs.

       I      12% Debentures A/c              24,000    I        P & L A/c          6,000
                                                                 Bal c/d           18,000
                                              24,000                               24,000
       II     Bal b/d                         18,000    II       P & L A/c          6,000
                                                                 Bal c/d           12,000
                                              18,000                               18,000
       III    Bal b/d                         12,000    III      P & L A/c             4,000
                                                                 Bal c/d               8,000
                                              12,000                               12,000
       IV     Bal b/d                          8,000    IV       P & L A/c             4,000
                                                                 Bal c/d               4,000
                                               4,000                                   8,000
       V      Bal b/d                          4,000    V        P & L A/c             2,000
                                                                 Bal c/d               2,000
                                               4,000                                   4,000
       VI     Bal b/d                          2,000    VI       P & L A/c             2,000
                                               2,000                                   2,000

      ½ mark for each year                                                                 1½×6=3 marks
      In case a Student has got amount of discount written off for the years 3 to 6 with
      variation up to Rs. 10 & also in decimals full credit to be given.                     1+3 =4 marks


                                                  209
11.                                     JOURNAL
       Date    Particulars                                LF Debit Rs.   Credit Rs.
               P & L App. A/c                         Dr.    1,25,000
                   Debenture Redemption Reserve                          1,25,000          1 mark
               (Debenture Redemption Reserve
               created)
               Own Debentures                         Dr.     2,00,000
                   Bank A/c                                              2,00,000          1 mark
               (1,000 own debentures purchased
               @ Rs. 200)
               8% Debentures A/c                      Dr.     2,50,000
                   Own Debenture A/c                                     2,00,000          1 mark
                   Profit on Cancellation of
                   Debentures A/c                                          50,000
               (1,000 own debentures cancelled)
               Profit on Cancellation of Debentures   Dr.       50,000
                   Capital Reserve A/c                                     50,000          1 mark
              (Profit on cancellation of debentures
              transferred to Capital Reserve)
                                                                             1+1+1+1 = 4 marks
12.    Dr.                         B’s Capital A/c                            Cr.
       Particulars                  Amount Particulars                     Amount
                                       Rs.                                    Rs.
       B’s Executor A/c              44,250 Bal b/d                        25,000
                                            Reserves                        3,000
                                            A’s Capital A/c                 6,429
                                            C’s Capital A/c                 2,571
                                            Revaluation A/c                 3,000
                                            P & L Suspense A/c              3,000
                                            Interest on Capital             1,250
                                     44,250                                44,250
      Note: No marks for balance b/d and amount transferred to B’s executors A/c.
      (1 mark for each correct adjustment )                                       1× 5= 5 marks
       Dr.                           B’s Executors A/c                          Cr.
       Particulars                     Amount Particulars                  Amount
                                          Rs.                                 Rs.
       Cash                              4,250 B’s Capital A/c              44,250
       Bal c/d                          40,000
                                        44,250                              44,250        1 mark

                                                                                      5+1=6 marks


                                               210
13.                                   JOURNAL
      Date   Particulars                                    LF      Debit     Credit
                                                                      Rs.       Rs.
             Bank A/c                            Dr.             1,05,000
                Share Application A/c                                       1,05,000     1 mark
             (Share Application money received on
             35,000 shares @ Rs. 3 per share)
             Share Application A/c                 Dr.           1,05,000
                 Share Capital A/c                                           60,000
                 Share Allotment A/c                                         45,000      1 mark
             (Share Application money transferred
             to Share Capital and excess application
             money transferred to Share Allotment
             A/c)
             Share Allotment A/c                     Dr.          60,000
             Discount on Issue of Shares             Dr.          20,000
                 Share Capital A/c                                           80,000      1 mark
             (Share Allotment money due @ Rs.3
             per share, after a discount of Re. 1/-)
             Bank A/c                                 Dr.         15,000
                Share Allotment A/c                                          15,000      1 mark
             (Share Allotment money received)
             Share First & Final Call A/c             Dr.         60,000
                Share Capital A/c                                            60,000      1 mark
             (Share First & Final Call money
             due @ Rs. 3/-)
             Bank A/c                                 Dr.         58,200
             Calls-in-Arrears A/c                     Dr.          1,800
                 Share First & Final Call A/c                                60,000      1 mark
             (Share First & Final Call money
             received on 19,400 shares)
                           OR
             Bank A/c                                 Dr.         58,200
             Share First & Final Call A/c                                    58,200
             (Share First & Final Call money
             received on 19,400 shares)
                                                                                   1×6 = 6 marks


                                                211
14.   Dr.                         Realization A/c                               Cr.
       Particulars                     Amount Particulars                    Amount
                                            Rs.                                   Rs.
       Plant A/c                        24,000 Bank Overdraft                 19,000
       Furniture A/c                     3,000 Mrs. C's Loan                   7,000
       Debtors A/c                      14,000 Creditors                      18,000
       JLP A/c                          12,000 Bills Payable                   8,500
       Bills Receivable                  9,000 Cash-assets realised :
       Stock                            30,000    JLP              30,000
       Cash-liabilities paid :                    Plant            12,000
         Unrecorded Liability 1,500               Furniture           1,500
         Bank Overdraft        19,000             Debtors             7,000
         Mrs. C’s Loan          7,000             Bills Receivable 4,500
         Creditors             18,000             Stock            15,000     70,000
         Bills Payable          8,500 54,000      Loss on Realisation
       Cash-expenses                     2,500    transferred to :
                                                  A’s Capital      13,000
                                                  B’s Capital         7,800
                                                  C’s Capital         5,200   26,000
                                      1,48,500                              1,48,500          4 marks

       Dr.                           Partners’ Capital A/c                              Cr.
       Particulars        A         B         C Particulars        A         B           C
       Loan to B            12,000                 Bal b/d    20,000 25,000       12,500
       Realization   13,000 7,800          5,200
       Cash A/c       7,000 5,200          7,300
                     20,000 25,000       12,500               20,000 25,000       12,500
      (½ mark for each partner's capital A/c)                                     ½×3 = 1½ marks
       Dr.                                    Cash A/c                           Cr.
       Particulars                    Amount Particulars                     Amount
                                           Rs.                                  Rs.
       Bal b/d                           6,000 Realisation A/c               54,000
       Realisation A/c                 70,000 Realisation A/c                 2,500
                                                A’s Capital A/c               7,000
                                                B’s Capital A/c               5,200
                                                C’s Capital A/c               7,300
                                       76,000                                76,000
      Note: If bank overdraft is directly transferred to Cash A/c, full credit be given.       ½ mark
                                                                                     4+1½+1 = 6 marks


                                               212
                                  OR

                                JOURNAL
Date   Particulars                                    LF    Debit      Credit
                                                              Rs.        Rs.

       Realisation A/c                          Dr.         2,000
           Cash A/c                                                    2,000      1 mark
       (Realisation expenses paid)

       Rohit’s Capital A/                       Dr.        24,000
       Suresh’s Capital A/c                     Dr.        36,000
           Deferred Revenue Advertising                               60,000      1 mark
           Expenditure A/c
       (Deferred Revenue Advertising
       Expenditure transferred to Partners’
       Capitals)

       Rohit’s Capital A/c                      Dr.        12,000
       Suresh’s Capital A/c                     Dr.        18,000
           P & L A/c                                                  30,000      1 mark
       (Loss transferred to Partners’ Capitals)

       Suresh’s Capital A/c                     Dr.         3,000
           Realisation A/c                                             3,000      1 mark
       (An unrecorded asset taken over by
       Suresh)

       Realisation A/c                          Dr.        22,000
           Cash A/c                                                   22,000      1 mark
       (Liabilities paid off)

       Rohit’s Capital A/c                      Dr.        15,000
           Loan to Rohit A/c                                          15,000      1 mark
       (Loan to Rohit adjusted against his
       capital)

                                                                    1+1+1+1+1+1= 6 marks




                                          213
15.    Dr.                              Revaluation A/c                        Cr.
       Particulars                   Amount Particulars                     Amount
                                        Rs.                                    Rs.
       Plant                           5,000 Patents                         8,000
       Profit on Revaluation
       credited to:
          Krishna           1,800
          Suresh            1,200      3,000
                                       8,000                                 8,000         2 marks

       Dr.                             Partners’ Capital A/c                               Cr.
       Particulars Krishna Suresh        Mohan Particulars       Krishna     Suresh Mohan
       Krishna’s                                Bal b/d          30,000      20,000
       capital                              600 Reserves          3,000       2,000
       Suresh’s                                 Revaluation
       capital                              400 A/c               1,800       1,200
       Bal c/d       37,800 25,200        9,000 Cash                                   10,000
                                                Premium           2,400       1,600
                                                Mohan’s
                                                capital (JLP)         600      400         —
                     37,800 25,200       10,000                  37,800      25,200 10,000
      (1 mark for each partner's capital a/c)                                         1×3 = 3 marks

                                        Balance Sheet
                                         As on…….
       Liabilities                    Amount      Assets                    Amount
                                         Rs.                                   Rs.
       Creditors                       15,000     Cash                      15,000
       Capitals:                                  Debtors                   15,000
         Krishna          37,800                  Stock                     16,000
         Suresh           25,200                  Furniture                  3,000
         Mohan             9,000       72,000     Patents                   13,000
                                                  Plant & Machinery         25,000
                                       87,000                               87,000          3 marks

                                                                                2+3+3 = 8 marks



                                                  214
                         ALTERNATE ANSWER
 Particulars                   Amount Particulars                     Amount
                                  Rs.                                    Rs.
 Plant                           5,000 Patents                         8,000
 Profit on Revaluation
 credited to:
    Krishna           1,800
    Suresh            1,200      3,000
                                 8,000                                 8,000         2 marks

 Dr.                             Partners’ Capital A/c                               Cr.
 Particulars Krishna Suresh        Mohan Particulars        Krishna    Suresh Mohan
 Bal c/d       40,200 26,800       10,000 Bal b/d           30,000     20,000
                                          Reserves           3,000      2,000
                                          Revaluation
                                          A/c                1,800      1,200
                                          Cash                                   10,000
                                          Premium            2,400      1,600
                                          capital (JLP)      3,000      2,000        —
               40,200 26,800       10,000                   40,200     26,800 10,000
(1 mark for each partner's capital a/c)                                         1×3 = 3 marks

                                  Balance Sheet
                                   As on…….
 Liabilities                    Amount      Assets                    Amount
                                   Rs.                                   Rs.
 Creditors                       15,000     Cash                      15,000
 Capitals:                                  Debtors                   15,000
   Krishna          40,200                  Stock                     16,000
   Suresh           26,800                  Joint Life Policy*         5,000
   Mohan            10,000       77,000     Furniture                  3,000
                                            Patents                   13,000
                                            Plant & Machinery         25,000
                                 92,000                               92,000          3 marks
*Alternatively full credit be given to be students for treating the JLP
surrender value through Revaluation A/c
                                                                     2+3+3 = 8 marks


                                            215
                                   OR
 Dr.                               Revaluation A/c                            Cr.
 Particulars                        Amount    Particulars              Amount
                                       Rs.                                 Rs.
 Profit on Revaluation                        Stock                     1,000
 transferred to:                              Building                  5,000
    X’s Capital 9,000                         Investments              12,000
    Y’s Capital 5,400
    Z’s Capital 3,600               18,000
                                    18,000                             18,000

 Dr.                             Partners’ Capital A/c                                Cr.
 Particulars          X        Y          Z Particulars          X       Y             Z
 Y’s Capital     3,000         4,000 Bal b/d                30,000   20,000 20,000
 JLP             5,000  3,000 2,000 General
 Cash                  32,400        Reserve                 5,000    3,000         2,000
 Bal c/d        36,000        19,600 Revaluation
                                     A/c                     9,000    5,400         3,600
                                     X’s Capital                      3,000
                                     Z’s Capital                      4,000
                44,000 35,400 25,600                        44,000   35,400 25,600
(1 mark for each partner's capital a/c)                                             1×3 = 3 marks

                            Balance Sheet
                            As on 1.1.2006

 Liabilities                        Amount Assets                       Amount
                                       Rs.                                 Rs.
 Bills Payable                       3,000   Cash                        4,600
 Sundry Creditors                    7,000   Stock                       6,000
 X’s Capital                        36,000   Debtors                    10,000
 Z’s Capital                        19,600   Plant & Machinery          15,000
                                             Buildings                  30,000
                                    65,600                              65,600

                                                                              2+3+3 = 8 marks


                                           216
                              ALTERNATE ANSWER
 Dr.                               Revaluation A/c                                Cr.
 Particulars                       Amount Particulars                 Amount
                                       Rs.                                Rs.
 Profit on Revaluation                       Stock                     1,000
 transferred to:                             Building                  5,000
      X’s Capital 3,000
      Y’s Capital 1,800
      Z’s Capital 1,200              6,000
                                     6,000                              6,000           2 marks

 Dr.                             Partners’ Capital A/c                            Cr.
 Particulars          X        Y          Z Particulars          X       Y          Z
 Y’s Capital   3,000         4,000           Bal b/d        30,000   20,000 20,000
 Loss on       5,000 3,000 2,000             General
 Surrender of                                Reserve         5,000    3,000     2,000
 JLP                                         Revaluation
 Cash                32,400                  A/c             3,000    1,800     1,200
 Bal c/d      36,000        19,600           X’s Capital              3,000
                                             Z’s Capital              4,000
                                             Profit on sale 6,000     3,600     2,400
                                             of investments
                44,000 35,400 25,600                       44,000    35,400 25,600
(1 mark for each partner's capital a/c)                                          1×3 = 3 marks

                            Balance Sheet
                            As on 1.1.2006
 Liabilities                       Amount Assets                        Amount
                                      Rs.                                  Rs.
 Bills Payable                      3,000    Cash                        4,600
 Sundry Creditors                   7,000    Stock                       6,000
 X’s Capital                       36,000    Debtors                    10,000
 Z’s Capital                       19,600    Plant & Machinery          15,000
                                             Buildings                  30,000
                                   65,600                               65,600

                                                                              2+3+3 = 8 marks


                                           217
                              ALTERNATE ANSWER
 Dr.                               Revaluation A/c                                   Cr.
 Particulars                       Amount Particulars                    Amount
                                       Rs.                                  Rs.
 JLP                               10,000        Stock                     1,000
 Profit on Revaluation                           Building                  5,000
 transferred to:                                 Investments              12,000
      X’s Capital 4,000
      Y’s Capital 2,400
      Z’s Capital 1,600              8,000
                                   18,000                                 18,000           2 marks

 Dr.                             Partners’ Capital A/c                               Cr.
 Particulars          X        Y          Z Particulars            X        Y          Z
 Y’s Capital     3,000         4,000 Bal b/d                   30,000   20,000 20,000
 Cash                  32,400        General
 Bal c/d        36,000        19,600 Reserve                    5,000    3,000     2,000
                                     Revaluation
                                     A/c                        4,000    2,400     1,600
                                     X’s Capital                         3,000
                                     Z’s Capital                         4,000
                39,000 32,400 23,600                           39,000   32,400 23,600

(1 mark for each partner's capital a/c)                                             1×3 = 3 marks

                            Balance Sheet
                            As on 1.1.2006
 Liabilities                       Amount Assets                           Amount
                                      Rs.                                     Rs.
 Bills Payable                      3,000    Cash                           4,600
 Sundry Creditors                   7,000    Stock                          6,000
 X’s Capital                       36,000    Debtors                       10,000
 Z’s Capital                       19,600    Plant & Machinery             15,000
                                             Buildings                     30,000
                                   65,600                                  65,600

                                                                                 2+3+3 = 8 marks


                                           218
                                            PART B

16.   Cash Flow Statement :
      Cash flow Statement is a statement which shows the changes in cash & cash
      equivalents during a given time period.                                              1 mark
      Uses of preparing the Cash Flow Statement : (Any Two)
      (a) Efficient Cash Management
      (b) Helps in Planning and Coordination
      (c) Helps in Control
      (d) Useful in Internal Financial Management
      (Or any other correct use)                                                  ½×2 = 1 marks
                                                                                  1+1 = 2 marks
17.   (a) Financial             (b)    Investing
      (c) Investing             (d)    Investing
      (½ mark each)                                                               ½×4 = 2 marks
18.   Contingent Liabilities : (Any 3)
      (a) Claim against the company not acknowledged as debt
      (b) Uncalled liability on shares partly paid.
      (c) Arrears of fixed cumulative dividend
      (d) Estimated amount of contracts remaining to be executed on Capital A/c &
            not provided for
      (e) Bills discounted not yet matured
      (Or any other correct item)
      (1 mark each)                                                               1×3 = 3 marks
19.                           Comparative Income Statement
                         For the year ended on 31.3.2004 & 2005
        Particulars                               2004     2005 Absolute Percentage
                                                                   Change        Change
        Sales                                 8,00,000 8,00,000         —            —
        Less: COGS                            5,60,000 4,80,000 (80,000)           14.3
       Gross Profit                        2,40,000   3,20,000     80,000           33.3
       Less: Indirect Expenses
             Administrative Expenses         50,000   1,00,000     50,000            100
       Operating Profit                    1,90,000   2,20,000     30,000           15.8
       Add: Non-operating Income                 —          —          —              —
       Less: Non-operating Expenses              —          —          —             —
       Net Profit                          1,90,000   2,20,000     30,000           15.8
       Less: Income Tax                      95,000   1,10,000     15,000           15.8
       Net Profit after tax                  95,000   1,10,000     15,000           15.8
      ½ mark for each step                                                        6×½ = 3 marks


                                              219
20.   (a) Stock Turnover Ratio                                                  ½ mark

          COGS = Sales – GP
                  = 2,00,000 – 50,000
                  = 1,50,000
          Closing Stock = 40% of 2,00,000
                        = 80,000                                                ½ mark

          Opening Stock

                             = 20,000                                           ½ mark

          Average Stock


          STR


                = 3 times.                                                      ½ mark

          (b) Current Ratio

                                   ............................... (1)

                Quick Ratio

                                   ................................ (2)
                Also CA – CL = 1,80,000
                   CA= 1,80,000 + CL ..................... (3)
                From (1) & (3)
                4 CL = 1,80,000 + CL
                3 CL = 1,80,000
                CL = 60,000
                CA=2,40,000                                                      1 mark

                Stock = CA – QA
                      = 2,40,000 – 1.2 (60,000)
                      = 2,40,000 – 72,000
                      = 1,68,000                                                 1 mark
                                                                          2+2 = 4 marks


                                                      220
21.                              Cash Flow from Operating Activities

      Particulars                                             Details   Amount
                                                                 Rs.       Rs.
      Net Profit before Tax                                              20,000
      Adjustments for non-cash & non-operating items
      Add: Interest on 6% Debentures                                      3,600
      Operating Profit before Working Capital changes:
      Add: Decrease in Current Assets, Increase in
           Current Liabilities
           Creditors                                           5,000
           Bills Payable                                       5,000
           Other Current Liabilities                           5,000     15,000
      Less: Increase in Current Assets, Decrease in
           Current Liabilities
           Stock                                             (15,000)
           Debtors                                           (10,000)   (25,000)

      Cash from operations                                               13,600

                                                                                   6 marks
                                        OR

                      Cash Flows From Operating Activities

      Particulars                                             Details   Amount
                                                                 Rs.       Rs.

      Gross Profit                                                       80,000
      Less: Salaries paid                                     10,000
      Rent paid                                                5,000     15,000

      Cash flows from operations                                         65,000
      Less tax paid                                                     (10,000)
      Cash generated from operating activities                           55,000

                                                                                   6 marks




                                                 221
                                    ALTERNATE ANSWER
                              Cash Flows From Operating Activities
          Particulars                                         Details           Amount
          Net Profit before Tax                                                  49,000
          Adjustments for non-cash & non- operating items:
          Add: Depreciation                                          20,000
                Loss on Sale of Building                              5,000
                Goodwill written off                                  8,000      33,000
          Less: Profit on Sale of Machinery                        (10,000)
                Dividend Received                                   (3,000)    (13,000)
          Operating Profit before working capital changes                        69,000
          Less: Increase in Accrued Commission                                    4,000
          Cash from operations                                                   65,000
          Less tax paid                                                        (10,000)
          Cash generated from operating activities                               55,000
      Note: If it has been assumed that no tax has been paid, marks should not
      be deducted. Cash from operating activities would then be Rs.65,000.

                                              PART C
16.   This method of coding is used to represent items/ objects in some sequence:
      ascending or descending.                                                              2 marks
17.   OLE stands for Object Linking and Embedding. It refers to an object that could
      be a photograph, bar code image or another document created in another software
      application.                                                                          2 marks
18.   The reports which are generated on the triggering of some event are called on
      demand reports                                                                        3 marks
19.   Text Align property affects the manner in which data is aligned within the control.
      The available options are: General, left, central, right and distribute.              3 marks
20.
                                     Debit Voucher
          Voucher No. : 2                                    Date: 14-Jan.2006.
          Credit Account : Cash Account.
                                      Debit Accounts
      S.No.      Code          Name of the       Amount        Narration
                                 account        in rupees
      1          711001         Purchases        25,000        Purchased goods
      2          711001         Carriage          1,500       Carriage on purchases
                                 Total           26,500
      Authorized by:                                 Prepared by :                          3 marks

21.   7 marks to be awarded irrespective of any answer or no answer.                        7 marks


                                                 222
                                      ENTREPRENEURSHIP

Time allowed : 3 hours                                                              Maximum Marks : 70

     General Instructions :
     (i)    All the questions are compulsory.
     (ii)   Marks are indicated against each question.
     (iii) Questions No. 1 to 5 are very short answer questions carrying 1 mark each. Answer to
           each of these should not exceed 15 words.
     (iv) Questions No. 6 to 10 are short answer questions carrying 2 marks each. Answer to each
          of these should not exceed 50 words.
     (v)    Questions No. 11 to 17 are short answer questions carrying 3 marks each. Answer to
            each of these should not exceed 75 words.
     (vi) Questions No. 18 to 21 are short answer questions carrying 4 marks each. Answer to
          each of these should not exceed 150 words.
     (vii) Questions No. 22 to 24 are long answer questions carrying 6 marks each. Answer to
           each of these should not exceed 250 words.


                                       QUESTION PAPER CODE 98

1.          What is meant by Annual Turnover ?                                                       1

2.          What is the importance of a no objection certificate ?                                   1

3.          What are the important elements of a production plan ?                                   1

4.          What is meant by trade practices ?                                                       1

5.          Why is pricing considered a crucial activity ?                                           1

6.          An entrepreneur is known as an ‘opportunity spotter’. Write a note in brief.             2

7.          What is meant by equity funds ? How are these obtained ?                                 2

8.          What compulsions would have led an entrepreneur to set up his enterprise outside
            city limits ? List any two such compulsions.                                             2

9.          How does advertising help an enterprise ?                                                2

10.         What are the advantages of taking assets on lease ?                                      2

11.         How is the political factor important for Entrepreneurship ?                             3


                                                       223
12.   How does market demand influence a business idea ? Give a suitable example.                3

13.   Briefly explain how the manpower cost has a direct bearing on the profitability of
      an enterprise.                                                                             3

14.   What is net profit ratio ? What does it indicate ?                                         3

15.   What is meant by the Innovative process ?                                                  3

16.   What is meant by public financing ? How does it support an enterprise ?                    3

17.   As a young entrepreneur you are investing in a Book Stall. What kind of sales
      promotion techniques would you adopt ? Explain in brief.                                   3

18.   What financial resources are needed to start and sustain an enterprise ? Give
      suitable examples in support of your answer.                                               4

19.   You are planning to establish a small-scale textile import unit. What types of utilities
      would you need for the smooth running of your enterprise ? Explain briefly.                4

20.   Define Financial Planning. Explain the role of financial planning in management.           4

21.   Distinguish between Debentures and Equity Shares on the basis of :                         4
      (a) Payment of Dividend
      (b) Repayment of capital
      (c) Voting rights
      (d) Rate of dividend

22.   Describe the process of testing ideas for assessing their opportunity potential.           6
                                              OR
      Discuss any three fields of ideas with suitable examples.                                  6

23.   What does ‘decision-making’ stand for ? Explain the steps involved in decision
      making.                                                                                    6
                                              OR
      “An enterprise that does not grow will eventually die.” Explain with suitable examples.    6

24.   An entrepreneur wants to start a series of 10 service outlets (Auto Service) in the
      city. List out the various inputs he would need in terms of human resources for
      effective services through his endeavour. Keeping the minimum wages for the
      labour he would employ, and other staff, work out an approximate financial profile.        6
                                              OR


                                                    224
      You are planning to manufacture 1000 kilos of traditional sweets every day for
      retail sale. Draft a report that will indicate the following :                         6
      (a) Sources for Raw Materials
      (b) Manufacturing Methods
      (c) Manpower Requirements
      (d) Technical Feasibility
      (e) Financial Viability
      (f)   Marketing Strategy

                                  QUESTION PAPER CODE 98/1

1.    What is Market Assessment ?                                                            1

2.    List the uniqueness of an Entrepreneur.                                                1

3.    Why. does a Company need a Production Plan ?                                           1

4.    What is a sample survey ?                                                              1

5.    What is meant by Variable Pricing ?                                                    1

6.    What are the two basic roles of an entrepreneur ?                                      2

7.    What is Venture Capital ? List two inputs that would form a part of Venture Capital.   2

8.    What compulsions would have led an entrepreneur to set up his enterprise outside
      city limits ? List any two such compulsions.                                           2

9.    Why is advertising necessary for products ?                                            2

10.   List any four items of an enterprise that can be taken on lease.                       2

11.   How is socio-cultural factor important for entrepreneurship ?                          3

12.   How does market supply influence a business idea ? Give a suitable example.            3

13.   “Pollution control systems should be a part of the plant design of an enterprise”.
      Explain in brief.                                                                      3

14.   What is a Debt Equity Ratio ? What does it indicate ?                                  3

15.   What is meant by the creative process ?                                                3

16.   What is meant by personal financing ? How does it support an enterprise ?              3

17.   As a young entrepreneur you are investing in a fast food set up. What kind of sales
      promotion techniques would you adopt ? Explain in brief.                               3


                                                 225
18.   Explain in brief any four steps needed to develop a good human resource for an
      organization.                                                                          4

19.   You are planning to establish a small scale textile export unit. What are the types
      of utilities you would need for the smooth running of your enterprise ? Explain
      briefly.                                                                               4

20.   What is meant by Capital Structure ? Discuss the factors affecting the determination
      of the Capital Structure of an enterprise.                                             4

21.   Distinguish between ‘preference shares’ and ‘equity shares’ on the basis of :          4
      (a) Payment of dividend
      (b) Repayment of capital
      (c) Voting rights
      (d) Rate of dividend

22.   Describe the different stages involved in setting up a small scale enterprise.         6
                                            Or
      With an example for each method, describe the different methods adopted by
      entrepreneurs to generate ideas.                                                       6

23.   An entrepreneur intends to manufacture ice cream during summer. Draw a plan of
      action indicating the fixed costs, variable costs, direct costs and overheads.         6
                                              Or
      Discuss the growth sustaining activities giving suitable examples.                     6

24.   You are planning to manufacture 1000 kilos of crispy snacks every day for retail
      sale. Draft a report that will indicate the following :                                6
      (a) Sources for raw materials
      (b) Manufacturing methods
      (c) Manpower requirements
      (d) Technical feasibility
      (e) Financial viability and
      (f) Marketing strategy
                                                Or
      An entrepreneur wants to start a series of 10 service outlets (Computers
      maintenance) in the city. List out the various inputs he would need in terms of
      human resources for effective services through his endeavour. Keeping the minimum
      wages for the labour he would employ, and other staff, work out an approximate
      financial profile.                                                                     6


                                                  226
                    Marking Scheme—Entrepreneurship

General Instructions :
1.   The Marking Scheme provides general guidelines to reduce subjectivity in the
     marking. The answers given in the Marking Scheme are suggested answers. The
     content is thus indicative. If a student has given any other answer, which is different
     from the one given in the Marking Scheme, but conveys the requisite meaning,
     such answers should be given full weightage.
2.   Evaluation is to be done as per instructions provided in the Marking Scheme.
3.   If a question has parts, please award marks in the right hand side for each part.
     Marks awarded for different parts of the question should then be totalled up and
     written in the left hand margin.
4.   If a question does not have any parts, marks be awarded in the left-hand margin.
5.   If a candidate has attempted a question twice, marks obtained in the question
     attempted first should be retained and the other answer should be scored out.
6.   There are few questions on distinction between two concepts. In such questions,
     sometimes some students give one aspect of the difference correctly and the
     other is either wrong or not given at all, no mark should be given for such
     distinction.
7.   In case of choice-type questions, if an examinee attempts both the choices, assess
     the choice attempted first.
8.   In a question, if the question asks for two features/ characteristics/ points but an
     examinee writes more than two features/ characteristics/ points, say, five of which
     first is correct, second is incorrect, the first two should be assessed and the
     remaining should be ignored.
9.   It is expected that the Marking Scheme should be followed objectively to avoid
     over-strict tendency in marking. For instance, if an examinee scores 20 marks,
     his/ her marks should not be inflated to 23 simply to pass him/her.
10. Marks should be awarded keeping in view the total marks of that particular question
    and not the total marks of the question paper. For example, if one mark is given
    to a 3 marks question even if nothing is correct then that one mark constitutes
    33% of the total marks ear-marked for this answer. This must be avoided.

11. A full scale of marks 0-70 has to be used. Please do not hesitate to award full
    marks if the answer deserves it. Similarly, wherever an examinee writes answer
    up to the mark, his/her marks should not be deducted unnecessarily.



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                                 QUESTION PAPER CODE 98
                          EXPECTED ANSWERS/VALUE POINTS

1.   Means the total sales of the year including cash and credit.                               1 mark
2.   No objection certificate helps the entrepreneur in the provisional registration of
     the unit.                                                                                  1 mark
3.   Elements of a production plan : (any two points)
     (a) Supply of raw materials
     (b) Work schedule
     (c) Maintenance
     (d) Quality assurance
     (e) Sales forecasting
     (f) Production storage maintenance.                                                  ½×2 = 1 mark

4.   Policies and practices adopted by the business to perform its activities in the
     market.                                                                                    1 mark

5.   Pricing is crucial : (one point)
     (a) Related to the profits.
     (b) Decides the preference of the buyer
     (c) Decides marketing strategy
     (d) Reach of product in the market.                                                        1 mark

6.   Entrepreneur identify the problems in the environment and convert them into an
     opportunity or viable business venture.                                                   2 marks

7.   Funds invested by the owners of the business by way of equity shares and free
     reserves. They are obtained by way of issue of shares.                        1+1 = 2 marks

8.   (a) Easily availability of cheap and skilled labour
     (b) Cheap land rates
     (c) Rigid pollution standards
     (d) Concessions given by the govt.
     (e) Infrastructural facilities.
     (or any other appropriate answer)                                                    1×2 = 2 marks

9.   Any two points given below.
     (a) creates and stimulates demand
     (b) minimizes marketing cost
     (c) facilitate speedy movements of products
     (d) creates goodwill
     (e) creates customer.                                                                1×2 = 2 marks


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10.   Any 2 points
      (a) No full amount is paid for acquiring the assets.
      (b) Assets can be charged or given back to the leaser any time.
      (c) In case of short term contracts no need to purchase the assets.
      (d) Helpful in cases where cost of equipment and depreciation is high.                1×2 = 2 marks

11.   Political factors are important for entrepreneurship as they have a direct bearing
      on the trade policies and commerce as the working of the business depends upon
      the policies and decisions taken by the government from time to time.                      3 marks

12.   Market demand will help in assessing price of the product, supply, the target
      customer, production level and taste and preference of consumers.
      (any appropriate) — example                                                   2+1 = 3 marks

13.   Manpower cost is the cost paid to workers in the organization. It consist a major
      part in the total cost of production which influence the profits of the enterprise.        3 marks

14.   Net profit ratio is the ratio. Net profits in relation to net sales of the business



      It indicates the profitability of the business. Higher it is the better is suppose to be.
                                                                                          1+1+1 = 3 marks
15.   Innovation process involves the translation of a useful idea into an application
      which has commercial value.
      It involves
      (a) Analytical planning
      (b) Organizing resources.
      (c) Implementation
      (d) Commercial application                                                             2+1 = 3 marks

16.   Public financing is the process where funds are raised through issue of shares or
      debentures.
      It supports the enterprise by creating the image and creditability of the company.
      It enhances the scope for credits, marketing strategy etc.                            2+1 = 3 marks

17.   Any 3 points with details.
      (a) Price off
      (b) Samples
      (c) Premiums
      (d) Coupons
      (e) Contests
      (or any other appropriate point)                                                      1×3 = 3 marks


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18.   Funds are needed both for fixed capital as well as working capital
      They may be raised for :-
      (a) short term – cash credit, advance from customer
      (b) medium term – public deposit, loans from bank and financial institutions.
      (c) Long term – equity share, preference share and debenture                                 4 marks

19.   (a) Physical resources
      (b) Technical resources
      (c) Financial resources
      (d) Human resources
      (points with proper explanations)                                                       1×4 = 4 marks

20.   Financial planning is the process of deciding in advance the Capitalization and
      capital structure of the enterprise.
      (Any two points)
      (a) helps in estimating the amount of capital to be raised
      (b) helps in determing the forms and proportionate amount of capital
      (c) ensure that no surplus or shortage of funds.
      (d) Ensure liquidity and safety and security of funds.                                  2+2 = 4 marks

21.
            Basis                    Debenture                    Shares
       (a) payment of dividend        Dividend is not paid        Dividend is paid on share
                                     as interest is paid on
                                     them
       (b) repayment of capital      Prior to share holder        After debentures
       (c) Voting rights             No voting rights             Carry voting rights
       (d) rate of dividend          A fixed rate of interest     Rate of dividend paid is
                                     is paid                      not fixed
      (point a and d if written incorrectly still two marks will be given as the point of
      distinction are not cleared)                                                            1×4 = 4 marks

22.   Process of testing ideas is as follows:-
      1.   Product or service identification
      2.   application and use
      3.   level of operation
      4.   cost


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      5.   competition
      6.   technical complexity                                                       For points = 4 marks
      7.   annual turnover and profit margins                                         For details = 2 marks
                                                                                             Total 6 marks
                                             OR
      (Any three points with details)
      (a) Natural resources                    (e) Trading related ideas
      (b) Existing products or service          (f) Service sector ideas
      (c) Market driven ideas                  (g) Creative efforts
      (d) Demand driven ideas                                                               2×3 = 6 marks

23.   Decision making stands for the process of taking various decisions
      Related to the problem and opportunities faced by an entrepreneur.
      Def – 2 marks
      Steps :-
      1. defining the problem                       5. compare alternatives
      2. analyse and identify the situation         6. Rate the risk
      3. gathering information                      7. Select the best alternative
      4. develop alternatives                       8. implementation
      (Point 4 marks)                                                                       2+4 = 6 marks
                                           OR
      (a) direct and indirect competition
      (b) changes in technology
      (c) consumer trends
      (d) creativity and innovation
      ( 1 mark for detail and ½ for example per point)                                     1½×4 = 6 marks

24.   Human resources required-
      (a) skilled labour
      (b) semi skilled labour
      (c) unskilled labour
      financial profile is the assessment of revenue, cost, profits and losses etc.
      (any other appropriate answer)                                                               6 marks
                                             OR
      If the child has explained the points asked clearly full marks to be awarded
      (any other appropriate answer)                                                         1×6 = 6 marks



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                                  QUESTION PAPER CODE 98/1

                          EXPECTED ANSWERS/VALUE POINTS

1.   Market assessment is the study of the market to identify the target customers,
     demand and supply position of a product, competition, project innovation and
     changes and understanding the existing trade practices.                                     1 marks
     (Give 1 mark for any one of the correct point mentioned)

2.   (a) Vision and creativity.
     (b) Ability to perceive basic idea.
     (c)   Ability to harness different sources.
     (d)   Innovation.
     (e) Taking initiative.
     (f)   Persistence
     (g) Self confidence.
     (h) Faith and commitment to a planning paradigm.
     (i)   Information seeking and concern for people and environment.                            1 mark
     (Give 1 mark for any one of the correct point mentioned)

3.   (a) Ensure availability of raw material.
     (b) Monitor the production output and stock.
     (c) Schedule the work – what needs to be done, by whom and at what time.
     (d) to mobilize resources.
     (e) to calculate the cost of production.
     (f)   Plan the route of production
     (g) Identify the standard capacity of machines, std output and std quality.
     (h) Working capacity of each machine.
     (Give 1 mark for any two points)                                                       ½×2 = 1 mark

4.   It is a survey of few selected customers scattered over a wide geographical area.            1 mark

5.   Variable pricing is the policy of charging different prices from different customers
     depending upon the situations prevailing in the market.                                      1 mark

6.   Basic two roles of an entrepreneur
     (a) Opportunity spotter
     (b) Project champion.                                                                  1×2 = 2 marks


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7.     Venture capital is the investment made by the entrepreneur to start the business.
       It is the risky capital.
       2 inputs are –
       (a) equity                (b) Debt
       (for any other appropriate answer give full marks)
      (1 mark definition, ½ mark each input)                                             1+1 = 2 marks

8.    (a) Easily availability of cheap and skilled labour
      (b) Cheap land rates
      (c) Concessions given by the govt.
      (d) Rigid pollution standards.
      (e) Cheap and easy availability of raw material.
      (f) Infrastructural facilities provided by the govt.
      (or any other appropriate point)                                                   1×2 = 2 marks

9.    Any two points given below. (Any two points)
      (a) Creates and stimulates demand.
      (b) Minimizes marketing cost.
      (c) Facilitates speedy movements of products.
      (d) Creates goodwill.
      (e) Creates customers.
      (f) Monitors buying habits.
      (g) Expansion and diversification of products
      (Or any appropriate point)                                                         1×2 = 2 marks

10.   (a)   Machinery
      (b)   Furniture.
      (c)   Land
      (d)   Computers , air conditioners.
      (e)   Building
      (f)   Any other equipment.                                                         ½×4 = 2 marks

11.   Socio cultural factors help the entrepreneurs to produce the product or service
      which satisfy the needs of the individuals (customers). On the basis of life styles,
      beliefs, custom, convention practices, family background, age group,
      education etc.
      (any one point should be included in the answer)                                        3 marks

12.   It helps us in knowing the quantities of the products made available in the market
      by all the existing players and future expectations of new entrant in the field. Thereby
      helping in deciding about the manufacturing capacity, chances of increase or decrease
      in supplies, prices, image of product etc. Example- any one suitable example. 2+1 = 3 marks


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13.   Pollution may be of noise, air, water or affluent and may lead to animal and human
      health hazards Entrepreneurs should take the responsibility to keep pollution under
      control, to provide devices to prevent polluting materials from affecting public
      health.
      ( or any other appropriate answer)                                                     3 marks
14.   It is the ratio of borrowed funds to owned funds



      It indicates the solvency position of the business.                             1+1+1 = 3 marks

15.   Creative process is the ability to bring something new into existence.
      It involves :
      (a) Idea Germination – the seeding stages of a new idea recognition.
      (b) Preparation – Conscious search for knowledge rationalization.
      (c) Inculcation – Sub-conscious assimilation of information fantasizing.
      (d) Illumination - Recognition of an idea as being feasible realization.
      (e) Verification – Application or test to prove idea has value validation.
      (any four points or any other appropriate answer)
      (For definition 2 marks and 1 mark for four involves)                                  3 marks

16.   It is the capital which is invested by the owner.
      Supports the enterprise in following ways.
      (a) Provides the basis of control over management
      (b) Permanent capital
      (c) Provides risk capital
      (d) No cost involved
      (e) No legal formalities
      (f) The funds can be used in any desired manner for development purposes.
      (Mean - 1 mark, any two pts - 1×2 marks)                                  1+2 = 3 marks

17.   Any three techniques :
      (a) Price off
      (b) Quantity plus
      (c) Coupons
      (d) Contest
      (e) Buying allowance
      (any other appropriate point)
       (½ marks for point & ½ for detail for any three points)                          1×3 = 3 marks


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18.   Any four steps/points with proper explanation.
      (a) Recruitment
      (b) Training
      (c) Motivation
      (d) Providing appropriate organizational climate.
      (e) Scope for performance
      (f) Feedback and appraisal
      (g) Scope for development for the aspirants.
      (h) Retraining.
      (If the student has given more than four points without explanation can be
      considered for full marks)                                                 1×4 = 4 marks
19.   (a) Physical resources        (b) Technical resources
      (c) Financial resources       (d) Human resources
      (points with proper explanation)                                                   1×4 = 4 marks
20.   It is the make up of capitalization
      It is the ratio of debt an equity and free reserves.
      Factors affecting : (any 3 factors with explanation)
      (a) Trading on equity                         (e) Cash flow ability.
      (b) Cost of capital                           (f) Size of the enterprise
      (c) Stability of sales                        (g) Market condition.
      (d) Control                                                                        1+3 = 4 marks
21.   Difference between Preference share and Equity share.
            Basis              Preference Share                   Equity Share
       (1) Voting rights       The holder of these shares         Enjoy voting rights.
                               do not enjoy voting rights.
       (2) Payment of          Have preferential rights as to     Get the dividend after the
           dividends           payment of dividend.               payment to preference
                                                                  shareholders.
       (3) Repayment of        Have the preferential rights as    Repayment is made
           capital             to repayment of preference         after making the
                               share capital                      repayment topreference
                                                                  share holders
       (4) Rate of             Fixed                              May vary from year to
           dividend                                               year.
       (5) Convertibility      Can be converted into              They are not convertible
                               equity shares
       (6) Redemption          They are redeemable during         Are not redeemable during
                               the life time of the company       the life time of company.
      (one mark for each correct point or any other appropriate answer)                  1×4 = 4 marks


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22.   STAGE-I
      (a) Opportunities
      (b) Resources
      (c) Control mechanism to mobilize resources
      (d) Organizational structure.

      STAGE-II
      (a) Project report
      (b) No objection certificate.
      (c) Obtaining formal sanction of loan
      (d) Constructing of building and installation of machinery.
      (e) Detailing manpower
      (f)   Establishing marketing network
      (g) Applying for permanent registration.
      (3 marks for each stage with appropriate details)                                  3+3 = 6 marks

                               OR

      Any six points with examples for each
      (a) Brainstorming
      (b) Doing market research
      (c) Gathering information
      (d) Seeking assistance from entrepreneurs
      (e) Using hobbies to generate ideas.
      (f)   Talking and listening to people.
      (g) Day dreaming and fantasizing.                                                  1×6 = 6 marks

23.   Total cost = FC + VC + Direct cost + overheads
      Fixed cost (FC) = is the total cost which remains fixed even at zero production.
      Variable cost (VC)= is the cost which varies with output and time
      Direct cost (DC)= which can be easily identified and can be linked with the
                          Production process e.g. power, raw materials, wages.
      Overheads = Other expenditure incurred during the production process
                  e.g. advertising, audit fee, marketing expense etc.
      (If specific plan of action has been drawn with examples or figures 2 marks
      should be given for it) e.g. 2 marks                                     1×4 = 4+2 = 6 marks



                                                 236
                                             OR
      Any 4 points with details
      (a) Modernization
      (b) Expansion
      (c) Diversification
      (d) Substitution.
      (e) Franchising
      (f) Research and development
      (g) Human Resource through training.                                            1½×4 = 6 marks

24.   If the child has explained the points asked clearly full marks to be awarded
      (any other appropriate answer)                                                         6 marks
                                       OR
      Human resources required
      (a) Skilled labour
      (b) Semi skilled labour
      (c) Unskilled labour
      Financial profile is the assessment of revenue, cost, profits and losses etc.
      (any other appropriate answer)                                                   1×6 = 6 marks




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