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(c) Risk of change in pattern of demand 

(a) Tea and Rubber

(b) Zaid Crops

(c) Prof. M. S. Swaminathan

1. Quantity and duration of water availability compared to normal wells is greater 

2. Private ownership, convenient to use 

3. Quality of water is good 

4. No loss of water due to evaporation 

• Creation of a national water grid 

• Conservation of water 

• Reducing water pollution 

• Reduce surface run off and river bed silting 

• Recharging of groundwater 

• Provide water to deficit areas 

1. Reducing surface run-off 

2. Recharging groundwater 

3. Irrigation  

Tank method is an outcome of watershed management.

Watershed management is the process of creating means and methods of reducing surface run-off, and conserving water within the watershed for future use. 

1. Irrigation 

2. Hydro electricity 

3. Flood control 

4. Recreation 

Correct option is (A) Earning capacity

Correct option is (A) Profitability Analysis

Analysis of solvency discloses the long-term solvency of business entity.

Correct option is (C) Information regarding use usage of assets

Financial statements are the end products of accounting process. They provide information about the probability and financial
position of a business.

Characteristics of Financial Statements:

• Financial statements are related to past period and hence are historical documents.
• They are expressed in terms of money.
• Financial statements show profitability through statement of profit and loss and financial position through balance sheet.

As per Section 2 (40) of the Companies Act, 2013, “Financial 

Statements” in relation to a company include the following:

• A balance sheet as at the end of the financial year
• A statement of profit and loss for the financial year
• Cash flow statement for the financial year
• A statement of changes in equity, if applicable, and
• Explanatory notes.

(b) public company

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Where the normal operating cycle cannot be identified it is assumed to have a duration of 12 months.

A payable shall be classified as a “Trade payable” if it is in respect to the amount due on account of goods purchase as service received in the normal course of business. It include both ‘Sundry creditors’ and bills payable.

Trade Receivables: Trade receivables refer to the amount receivable on account of sale of goods or services rendered by the company in the normal course of business. They are classified as current assets if the amount is expected to be realised within a period of 12 months from the date of balance sheet or within the operating cycle of the business.

Share Options Outstanding Account: It is a reserve which represents the difference between the market value and issue price of shares issued to employees under Employees Stock Option Scheme i.e., ESOR For example, if the shares are issued to employees at Rs 60 per share whereas the market price is Rs 100 per share, the difference i.e., Rs 40 should be credited to this reserve.

The short term most liquid investment which can be quickly changed in cash and the risk of changing in its value is equal to nothing called cash equivalents. Any investment is considered cash equivalents only then when its maturity period is minimum means three months or less than it from the receiving date.

(a) balance sheet

Such amount received by the company on share application but not yet allotted share at the date of preparation of balance sheet so its called ‘share application money pending allotment.

(b) end of accounting year

The are:

1. Fixed Assets
2. Non Current Investment
3. Long term loan and Advances
4. Other non current assets
5. Differed tax assets.

Current Assets : An asset shall be classified as current when it satisfies any of the following criteria:

1. It is expected to be realised in or is intended for sale or consumption in the company’s normal operating cycle.
2. It is held primarily for the purpose of being traded.
3. It is expected to be realised within twelve months after the reporting date.

(c) repairs of factory machine

Contingent Liabilities and Commitments:
(i) Contingent Liabilities: Contingent liabilities are those liabilities which may or may not arise because they are dependent on a happening in future. For example, a claim is filed against the company in a consumer court by a customer. The court may hold the company at fault and may impose penalty. It may happen otherwise, also whether the company has a liability or not is dependent on court order. Thus, it is contingent liability.
Contingent liability is not recorded in the books of account but it is disclosed in the notes to accounts for the information of the users. 

It is to be classified into:
(a) Claims against the company not acknowledged as debt.
(b) Guarantees given by the company.
(c) Other money for which the company is contingently liable.

(ii) Commitments: Commitment is defined as an agreement to perform a particular activity at a certain time in the future under certain circumstances. 

Commitments shall be classified as:
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for.
(b) Uncalled liability on shares and other investment partly paid. If the company hold partly paid shares of other companies as investment. The uncalled amount on these shares is a commitment as it will have to be paid when called.
(c) Other commitments (specify nature) such as; arrears of dividends on cumulative preference shares.

(a) deferred tax liability

• Non Current Assets
• Current Assets

South Americas major exports are mostly primary commodities such as sugar, coffee, cocoa, tobacco, beef, corn, wheat, petroleum, natural gas, linseed, cotton, iron ore, tin and copper. South Americas products include mostly exported to North America and Europe.

Correct answer is (d) 4

(a) Both A and R is correct

1. South America contains the world s most mixed population.

2. Many people in South America are descended from European, especially the Spanish and Portuguese, who begin to arrive during the 15th century.

3. The descendants of African slaves brought over by the Europeans. Native people still live in the mountain and the rainforests and keeping their own languages and traditions.

4. There are three major races found in South America and are American Indian European Blacks. The mixed population of Native Indians and Europeans is known as ‘Mestizo’.

5. The mixed population of European and the Blacks is called ‘Mulato’ and the mixture of Native Indians and Blacks is called ‘Zambo’.

6. The current population of South America is 429, 115, 060 (42.25 cores). Population density of South America is 21 persons per square kilometer.

7. South America is positioned 5th rank in total population among the continents

(d) Reserves and Surplus

1. Not for profit organisation usually keep ‘a cash book’ in which all receipts and payments are recorded. 

2. They maintain ‘a ledger’ containing the accounts of all incomes, expenses, assets, and liabilities which facilities the preparation of financial statements at the end of the accounting year. 

3. The final accounts of a non-profit organisation consist of the following: 

• Receipts and payment Account 
• Income and Expenditure Account 
• Balance sheet

(c) A is wrong and R is correct

1. Owing to the position of the Andes all the great rivers of the continent drain into the Atlantic.

2. The Pacific streams are short and swift but along the coastlands of Peru their waters are used for irrigation and to some extent for hydro-electric power. Amazon is the longest river of South America (6,450km) and is the largest river system in the world. 

3. This river has over a thousand of tributaries.

4. The rivers Rio Negro, Madeira and Tapajos are important tributaries.

5. At the point where it enters the sea the river is so wide and powerful that it flows even at a distance of 80 km into the high seas.

6. The Orinoco River originates in the Guiana Highlands and flows northwards into the Caribbean Sea. 

7. The river Paraguay has the Parana and Uruguay rivers as the main tributaries which together form and known as the Platte River system.

8. All the rivers are navigable for quite some distance in the interior.

(d) all of these

1) “Not-for-profit organization is an entity intended to render services to the members of the public without any intention of profit”, eg : sports and arts club, Hospitals, Libraries charitable institutions etc.

a) Non-Profit organization usually keep ‘a cash book’ in which all receipts and payments are recorded. 

b) They maintain ‘a ledger’ containing the accounts of all incomes, expenses, assets and liabilities which facilities the preparation of financial statements at the end of the accounting year. 

c) The final accounts of a non-profit organization consist of the following: 

• Receipts and payment Account 
• Income and Expenditure 
• Account Balance sheet 

2) Procedure for preparation of Receipts and payments account as follows. 

1. This account always starts with opening balance of cash in hand and cash at bank, cash in hand always has a debit balance and hence appears on the debit side as the first item. Cash at bank has either a debit balance or a credit balance (overdraft).

2. All receipts made in cash during the accounting year will be shown on the debit side and all cash payments made during the accounting year are shown on the credit side.

3. Only actual cash receipts and cash payments are recorded in this account.

4. At end of the accounting period, this account is balanced and it shows the closing balance of cash in hand and at bank or bank overdraft, as the case may be.

Procedure for preparing Income & Expenditure as follows:-

1. This account is prepared usually in “T” form taking revenue expenses on the debit side and the revenue incomes on the credit side.

2. It is also prepared in vertical form. Under this method, the total of revenue incomes are shown first, revenue expenses follow it. After this, the total of expenses is deducted from the total of the incomes for ascertaining the surplus or deficit.

3. It is prepared to nd out the current year’s surplus or deficit, it does not have any opening balance. Therefore, previous year’s surplus or deficit is not important.

4. This account takes only the revenue incomes and revenue expenses. Capital receipts and payments are not taken into account.

5. Since it is maintained under accrual basis, current year’s income and expenditures alone are shown. 

6. Outstanding expenses, accrued incomes, ‘ prepaid expenses, income received in advance, depreciation, provision etc. in the current year are to be suitably adjusted. 

7. At the end of the accounting year the income and expenditure account is balanced and it reflects either a surplus or a deficit which is transferred to capital fund.

Industries which require heavy and bulky raw materials using enormous amounts of power, involvement of huge investment and large transport costs are called heavy industries.

Heavy Engineering Industries:

1. Industries which require heavy and bulky raw materials using enormous amounts of power, involvement of huge investment and large transport costs are called heavy industries.

2. These industries depend heavily on the Iron and Steel industry.

3. The important Heavy Industries are automobile industries, aircraft industries, ship building industries, Railway Wagon industries and farm equipment industries.

4. USA is the largest producer of automobiles.

5. The important Centers of heavy engineering industries are Detroit, Chicago, Buffalo, Indianapolis, Los Angeles, Saint Louis, Philadelphia, New York, Baltimore, and Atlanta in USA and Windsor in Canada

The New England region contains 70 % woolen textile industries.

(a) Iron and steel 

(b) Meat Packing 

(c) Paper 

(d) Oil refinery 

(e) Dairy products

The excess of income over expenditure is called Surplus 

Capital Fund represents the excess of the assets over liabilities.

The important Centers of heavy engineering industries are Detroit, Chicago, Buffalo, Indianapolis, Los Angeles, Saint Louis, Philadelphia, New York, Baltimore, and Atlanta in USA and Windsor in Canada.

i) Assets, Liabilities 

ii) Surplus 

iii) Cash in hand/Cash at bank/Bank over draft

Quebec City, Montreal, Boston, New York, Philadelphia, Charleston and New Orleans are . the Worlds largest ports.

Receipts and Payments Account 

The Yuvadhara Arts and Sports Club

Dr.