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In This Post we are  providing Chapter- 4 RECONSTITUTION OF PARTNERSHIP FIRM : RETIREMENT/DEATH OF A PARTNER NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON RECONSTITUTION OF PARTNERSHIP FIRM : RETIREMENT/DEATH OF A PARTNER

Question 1:

Distinguish between sacrificing ratio and gaining ratio.

ANSWER:

Basis of Difference	Sacrificing ratio	Gaining Ratio
1. Meaning	It is the ratio in which old partners agree to sacrifice their share of profit in favour of new partners/partner	It is the ratio in which continuing partner acquires the share of profit from outgoing partner/partner
2. Calculation	Sacrificing Ratio = Old Ratio – New Ratio	Gaining Ratio = New Ratio – Old Ratio
3. Time	It is calculated at the time of admission of new partners/partner.	It is calculated at the time of retirement/death of old partners/partner.
4. Objective	It is calculated to ascertain the share of profit and loss given up by the existing partners in favour of new partners/partner.	It is calculated to ascertain the share of profit and loss acquired by the remaining partners (of the new firm in case of retirement) from the retiring or deceased partner.
5. Effect	It reduces the profit share of the existing partners.	It increases the profit share of the remaining partners.

Question 2:

Why do firm revaluate assets and reassess their liabilities on retirement or on the event of death of a partner?

ANSWER:

At the time of retirement or death of a partner, it becomes inevitable to revalue the assets and liabilities of the firm for ascertaining their true and fair values. The revaluation is necessary as the value of assets and liabilities may increase or decrease with the passage of time. Further, it may be possible that there are certain assets and liabilities that remained unrecorded in the books of accounts. The retiring or the deceased partner may be benefited or may bear loss due to change in the values of assets and liabilities. Therefore, the revaluation of the assets and liabilities is necessary in order to ascertain the true profit or loss that is to be divided among all the partners in their old profit sharing ratio.

Question 3:

Why a retiring/deceased partner is entitled to a share of goodwill of the firm?

ANSWER:

Goodwill is an intangible asset of a firm that is earned by the efforts of all the partners of the firm. After the retirement or death of a partner, the fruits of the past performance and reputation will be shared only by the remaining partners. Thus the remaining partners should compensate the retiring or the deceased partner by entitling him/her a share of firm’s goodwill.

Question 4:

Explain the treatment of goodwill at the time of retirement or on the event of death of a partner?

ANSWER:

At the time of retirement or at the event of death of a partner, the goodwill is adjusted among the partners in gaining ratio with the share of goodwill of the retiring or the deceased partner. As per Para 16 of Accounting Standard 10, it is mandatory to record goodwill in the books only when consideration in money or money’s worth has been paid for it.

In case of retirement and death of a partner, goodwill account cannot be raised. There are namely two probable situations on which the treatment of goodwill rests.

1. If goodwill already appears in the books of the firm.

2. If no goodwill appears in the books of the firm.

Situation 1: If goodwill already appears in the books of the firm.

Step 1: Write off the existing goodwill

If goodwill already appears in the old balance sheet of the firm (if mentioned in the question), then first of all, this goodwill should be written off and should be distributed among all the partners of the firm including the retiring or the deceased partner in their old profit sharing ratio. The following Journal entry is passed to write off the old/existing goodwill.

All Partners’ Capital A/c	Dr.
	To Goodwill A/c
(Goodwill written of among all the partners in theirold ratio)

Step 2: Adjusting goodwill through partner’s capital account.

After writing off the old goodwill, the goodwill need to be adjusted through the partner’s capital account with the share of the goodwill of the retiring or the deceased partner. The following Journal entry is passed.

Remaining Partner’s Capital A/c	Dr.
	To Retiring/Deceased Partner’s Capital A/c
(Gaining Partner’s Capital A/c is debited in theirgaining share and retiring/deceased partner’s capitalaccount in credited for their share of goodwill)

Situation 2: If no goodwill appears in the books of the firm.

As no goodwill appears in the books of the firm, so the goodwill is adjusted through the partner’s capital account with the share of the goodwill of the retiring or the deceased partner. The following Journal entry is passed. 

Remaining Partner’s Capital A/c	Dr.
	To Retiring/Deceased Partner’s Capital A/c
(Gaining partner’s capital account is debited in their gainingshare and retiring/deceased partner’s capital account incredited for their share of goodwill)

Question 5:

Discuss the various methods of computing the share in profits in the event of death of a partner.

ANSWER:

In case of death of a partner during the year, his/her executer is entitled for share of profit up to the date of death of the partner.

The share of profit can be calculated by one of the two methods.

1) On time basis: Under this method, profit up to the date of the death of the partner is calculated on the basis of the last year’s/years’ profit or average profit of last few years. In this approach, it is assumed that the profit will be uniform throughout the current year. The deceased partner will be entitled for the share of the profit proportionately up to the date of his/her death.

Share of Deceased Partner in Profit =

Example- A, B and C are equal partners. The profit of the firm for the years 2008, 2009 and 2010 are Rs 10,00,000, Rs 7,00,000 and Rs 13,00,000 respectively. C dies on April 30, 2011. The share of C in the firm’s profit will be calculated on the basis of average profit of last three years. Firm closes its books every year on December 31.

In this case, C’s share in the profits will be calculated for four months, i.e. from January 01, 2011 to April 30, 2011.

2) On the sale basis: Under this method, profit is calculated on the basis of last year’s sale. In this situation, it is assumed that the net profit margin of the current year’s sale is similar to that of the last year’s.

Share of Deceased Partner’s Profit =×Sales from the beginning of the current year up to the date of death × Share of deceased partner

Example- X Y and Z are equal partners. The last year’s sales and profit were Rs 25,00,000 and Rs 2,50,000. Z died on the April 30, 2011. Sales of the current year till the date of Z’s death amounts to Rs 12,00,000. Firm closes its books on December 31 every year.

Question 6:

Digvijay, Brijesh and Parakaram were partners in a firm sharing profits in the ratio of 2:2:1. Their Balance Sheet as on March 31, 2017 was as follows:

Liabilities	AmountRs	Assets	AmountRs
Creditors	49,000	Cash	8,000
Reserves	18,500	Debtors	19,000
Digvijay’s Capital	82,000	Stock	42,000
Brijesh’s Capital	60,000	Buildings	2,07,000
Parakaram’s Capital	75,500	Patents	9,000
	2,85,000		2,85,000

Brijesh retired on March 31, 2017 on the following terms:

(i)    Goodwill of the firm was valued at Rs 70,000 and was not to appear in the books.

(ii)   Bad debts amounting to Rs 2,000 were to be written off.

(iii)  Patents were considered as valueless.

Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of Digvijay and Parakaram after Brijesh’s retirement.

ANSWER:

Books of Digvijay and ParakaramRevaluation Account
Dr.		Cr.
Particular	AmountRs	Particular	AmountRs
Bad Debts	2,000
Patents	9,000	Loss transferred to Capital Account:
		Digvijay	4,400
		Brijesh	4,400
		Parakaram	2,200
	11,000		11,000

Partners’ Capital Account
Dr.		Cr.
Particularss	Digvijay	Brijesh	Parakaram	Particularss	Digvijay	Brijesh	Parakaram
Brijesh’s Capital A/c	18,667		9,333	Balance b/d	82,000	60,000	75,500
Revaluation (Loss)	4,400	4,400	2,200	Digvijay’s Capital A/c		18,667
Brijesh’s Loan		91,000		Parakaram’s Capital A/c		9,333
Balance c/d	66,333		67,667	Reserves	7,400	7,400	3,700
	89,400	95,400	79,200		89,400	95,400	79,200

Balance Sheet as on March 31, 2017
Liabilities	AmountRs	Assets	AmountRs
Creditors	49,000	Cash	8,000
Brijesh’s Loan	91,000	Debtors	19,000
		Less: Bad Debts	2,000	17,000
Digvijay’s Capital A/c	66,333	Stock	42,000
Parakaram’s Capital A/c	67,667	Buildings	2,07,000
	2,74,000		2,74,000

Note: As sufficient balance is not available to pay the amount due to Brijesh, the balance of his Capital Account transferred to his Loan Account.

Working Note:

1. Brijesh’s Share of Goodwill

Total goodwill of the firm ´ Retiring Partner’s Share 

2. Gaining Ratio = New Ratio – Old Ratio

Digvijay’s Share

Parakaram’s Share

Gaining ratio between Digvijay and Parakaram = 4 : 2 or 2 : 1

Question 7:

The Balance Sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on March 31, 2015:

Books of Rajesh, Pramod and NishantBalance Sheet as on March 31, 2015
Liabilities	AmountRs	Assets	AmountRs
Bills Payable	6,250	Factory Building	12,000
Sundry Creditors	10,000	Debtors	10,500
Reserve Fund	2,750	Less: Reserve	500	10,000
Capital Accounts:		Bills Receivable	7,000
Rajesh	20,000		Stock	15,500
Pramod	15,000		Plant and Machinery	11,500
Nishant	15,000	50,000	Bank Balance	13,000
	69,000		69,000

Pramod retired on the date of Balance Sheet and the following adjustments were made:

a) Stock was valued at 10% less than the book value.

b) Factory buildings were appreciated by 12%.

c) Reserve for doubtful debts be created up to 5%.

d) Reserve for legal charges to be made at Rs 265.

e) The goodwill of the firm be fixed at Rs 10,000.

f) The capital of the new firm be fixed at Rs 30,000. The continuing partners decide to keep their capitals in the new profit sharing ratio of 3:2.

Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod’s Capital account to his loan account.

ANSWER:

Journal
Date	Particulars	L.F.	AmountRs	AmountRs
2015
Mar. 31	Revaluation A/c	Dr.		1,840
	To Stock A/c				1,550
	To Reserve for Doubtful Debts A/c				25
	To Reserve for Legal Charges A/c				265
	(Assets and Liabilities are revalued)
Mar. 31	Factory Building A/c	Dr.		1,440
	To Revaluation A/c				1,440
	( Factory Building appreciated)
Mar. 31	Rajesh’s Capital A/c	Dr.		160
	Pramod’s Capital A/c	Dr.		120
	Nishant’s Capital A/c	Dr.		120
	To Revaluation A/c				400
	(Loss on Revaluation adjusted to Partners’ Capital Account)
Mar. 31	Rajesh’s Capital A/c	Dr.		2,000
	Nishant’s Capital A/c	Dr.		1,000
	To Pramod Capital’s A/c				3,000
	(Pramod’s share of goodwill adjusted to Rajesh’s and Nishant’s Capital Account in their gaining ratio)
Mar. 31	Reserve Fund A/c	Dr.		2,750
	To Rajesh’s Capital A/c				1,100
	To Pramod’s Capital A/c				825
	To Nishant’s Capital A/c				825
	(Reserve Fund distributed all the partners)
Mar. 31	Pramod’s Capital A/c	Dr.		18,705
	To Pramod’s Loan A/c				18,705
	(Pramod’s Capital transferred to his Loan Account)
Mar. 31	Rajesh’s Capital A/c	Dr.		940
	Nishant’s Capital A/c	Dr.		2,705
	To Rajesh’s Current A/c				940
	To Nishant’s Current A/c				2,705
	(Excess in Capital Account is transferred to Current Account)

Parters’ Capital Account
Dr.	Cr.
Particulars	Rajesh	Pramod	Nishant	Particulars	Rajesh	Pramod	Nishant
Revaluation (Loss)	160	120	120	Balance b/d	20,000	15,000	15,000
Pramod’s Capital A/c	2,000		1,000	Reserve Fund	1,100	825	825
Pramod’s Loan A/c		18,705		Rajesh’s Capital A/c		2,000
Rajesh’s Current A/c	940			Nishant’s Capital A/c		1,000
Nishant’s Current A/c			2,705
Balance c/d	18,000		12,000
	21,100	18,825	15,825		21,100	18,825	15,825

Balance Sheet as on March 31, 2015
Liabilities	AmountRs	Assets	AmountRs
Bills Payable	6,250	Plant and Machinery	11,500
Sundry Creditors	10,000	Debtors	10,500
Reserve for Legal Charges	265	Less: Reserve	(525)	9,975
Pramod’s Loan	18,705	Bills Receivable	7,000
Current Account:		Stock	15,500
Rajesh	940		Less: 10% Depreciation	(1,550)	13,950
Nishant	2,705	3,645
Capital Account:		Factory Building	12,000	13,440
Rajesh	18,000		Add: 12% Appreciation	1,440
Nishant	12,000	30,000	Bank Balance	13,000
	68,865		68,865

Working Notes:

1) Pramod’s share of goodwill = Total goodwill of the firm × Retiring Partner’s Share = 

2) Gaining Ratio = New Ratio − Old Ratio

Gaining Ratio between Rajesh and Nishant = 2:1

NOTE: In the above solution, in order to adjust the capital of remaining partners in the new firm according to their new profit sharing ratio, the surplus or the deficit of Capital Account is transferred to their Current Account. But, in order to match the answer with that of given in the book, the surplus or the deficit amount of the Partners’ Capital Account, will either be withdrawn or brought in by the old partners. This treatment will be shown in the Partners’ Capital itself and no need to transfer the surplus or deficit capital balance to their Current Accounts. The following Journal entry is passed to record the withdrawal of surplus capital by the partners.

If existing partners withdraw their excess capital

Journal entry

Rajesh’s Capital A/c	Dr.	940
Nishant’s Capital A/c	Dr.	2,705
To Bank A/c		3,645
(Surplus Capital withdrawn)

Balance Sheet as on March 31, 2015
Liabilities	AmountRs	Assets	AmountRs
Bills Payable	6,250	Plant and Machinery	11,500
Sundry Creditors	10,000	Debtors	10,500
Reserve for Legal Charges	265	Less: Reserve	(525)	9,975
Pramod’s Loan	18,705	Bills Receivable	7,000
Capital:		Stock	15,500
Rajesh	18,000		Less: 10% Depreciation	(1,550)	13,950
Nishant	12,000	30,000
			Factory Building	12,000
		Add: 12% Appreciation	1,440	13,440
		Bank Balance	9,355
	65,220		65,220

Question 8:

Following is the Balance Sheet of Jain, Gupta and Malik as on March 31, 2016.

Books of Jain, Gupta and MalikBalance Sheet as on March 31, 2016
Liabilities	AmountRs	Assets	AmountRs
Sundry Creditors	19,800	Land and Building	26,000
Telephone Bills Outstanding	300	Bonds	14,370
Accounts Payable	8,950	Cash	5,500
Accumulated Profits	16,750	Bills Receivable	23,450
		Sundry Debtors	26,700
Capitals :		Stock	18,100
Jain	40,000		Office Furniture	18,250
Gupta	60,000		Plants and Machinery	20,230
Malik	20,000	1,20,000	Computers	13,200
	1,65,800		1,65,800

The partners have been sharing profits in the ratio of 5:3:2. Malik decides to retire from business on April 1, 2016 and his share in the business is to be calculated as per the following terms of revaluation of assets and liabilities : Stock, Rs 20,000; Office furniture, Rs 14,250; Plant and Machinery Rs 23,530; Land and Building Rs 20,000.

A provision of Rs 1,700 to be created for doubtful debts. The goodwill of the firm is valued at Rs 9,000.

The continuing partners agreed to pay Rs 16,500 as cash on retirement of Malik, to be contributed by continuing partners in the ratio of 3:2. The balance in the capital account of Malik will be treated as loan.

Prepare Revaluation account, capital accounts, and Balance Sheet of the reconstituted firm.

ANSWER:

In the books of Jain and Gupta Revaluation Account
Dr.	Cr.
Particulars	AmountRs	Particulars	AmountRs
Office Furniture	4,000	Stock	1,900
Land and Building	6,000	Plant and Machinery	3,300
Provision for Doubtful Debts	1,700	Loss transferred to
		Jain’s Capital A/c	3,250
		Gupta’s Capital A/c	1,950
		Malik’s Capital A/c	1,300	6,500
	11,700		11,700

Partners’ Capital Account
Dr.	Cr.
Particulars	Jain	Gupta	Malik	Particulars	Jain	Gupta	Malik
Revaluation (Loss)	3,250	1,950	1,300	Balance b/d	40,000	60,000	20,000
Malik’s Capital	1,125	675		Accumulated Profits	8,375	5,025	3,350
Cash			16,500	Jain’s Capital A/c			1,125
Malik’s Loan			7,350	Gupta’s Capital A/c			675
Balance c/d	53,900	69,000		Cash	9,900	6,600
	58,275	71,625	25,150		58,275	71,625	25,150

Balance Sheet
Liabilities	AmountRs	Assets	AmountRs
Sundry Creditors	19,800	Stock (18,100 + 1,900)	20,000
Telephone Bills Outstanding	300	Bonds	14,370
Accounts Payable	8,950	Cash	5,500
Malik’s Loan	7,350	Bills Receivable	23,450
		Sundry Debtors	26,700
Partners’ Capital:		Less: Provision for Bad Debts	1,700	25,000
Jain	53,900		Land and Building (26,000 – 6,000)	20,000
Gupta	69,000	1,22,900	Office Furniture (18,250 – 4,000)	14,250
		Plant and Machinery (20,230 + 3,300)	23,530
		Computers	13,200
	1,59,300		1,59,300

Working Note:

1) Malik’s share of goodwill = Total Goodwill × Retiring Partner Share = 

2) Gaining Ratio = New Ratio – Old Ratio

Gaining Ratio between Jain and Gupta = 10:6 or 5:3

Question 9:

Arti, Bharti and Seema are partners sharing profits in the proportion of 3:2:1 and their Balance Sheet as on March 31, 2016 stood as follows:

Books of Arti, Bharti and SeemaBalance Sheet as on March 31, 2016
Liabilities	AmountRs	Assets	AmountRs
Bills Payable	12,000	Buildings	21,000
Creditors	14,000	Cash in Hand	12,000
General Reserve	12,000	Bank	13,700
Capitals:		Debtors	12,000
Arti 20,000		Bills Receivable	4,300
Bharti	12,000		Stock	1,750
Seema	8,000	40,000	Investment	13,250
	78,000		78,000

Bharti died on June 12, 2016 and according to the deed of the said partnership, her executors are entitled to be paid as under:

(a) The capital to her credit at the time of her death and interest thereon @ 10% per annum.

(b) Her proportionate share of reserve fund.

(c) Her share of profits for the intervening period will be based on the sales during that period, which were calculated as Rs 1,00,000. The rate of profit during past three years had been 10% on sales.

(d) Goodwill according to her share of profit to be calculated by taking twice the amount of the average profit of the last three years less 20%. The profits of the previous years were:

2013 – Rs 8,200

2014 – Rs 9,000

2015 – Rs 9,800

The investments were sold for Rs 16,200 and her executors were paid out. Pass the necessary journal entries and write the account of the executors of Bharti.

ANSWER:

Books of Arti and SeemaJournal
Date	Particulars	L.F.	AmountRs	AmountRs
2016
June 12	Interest on Capital A/c	Dr.		240
	General Reserve A/c	Dr.		4,000
	Profit and Loss (Suspense) A/c	Dr.		3,333
	To Bharti’s Capital A/c				7,573
	(Profit, interest and general reserve are in credited toBharti’s Capital account)
June 12	Arti’s Capital A/c	Dr.		3,600
	Seema’s Capital A/c	Dr.		1,200
	To Bharti’s Capital A/c				4,800
	(Bharti’s share of goodwill adjusted to Arti’s andSeema’s Capital Account in their gaining ratio, 3:1)
June 12	Bharti’s Capital A/c	Dr.		24,373
	To Bharti’s Executor’s A/c				24,373
	(Bharti’s capital account is transferred to her executor’saccount)
June 12	Bank A/c	Dr.		16,200
	To Investment A/c				13,250
	To Profit on Sale of Investment				2,950
	(Investment sold)
June 12	Bharti’s Executor A/c	Dr.		24,373
	To Bank A/c				24,373
	(Bharti Executor paid)

Bharti’s Capital Account
Dr.	Cr.
Date	Particulars	J.F.	AmountRs	Date	Particulars	J.F.	AmountRs
2016				2016
June 12	Bharti’s Executor’s A/c		24,373	Mar. 31	Balance b/d		12,000
				June 12	Interest on Capital		240
					Profit and Loss (Suspense)		3,333
					General Reserve		4,000
					Arti’s Capital A/c		3,600
					Seema’s Capital A/c		1,200
			24,373				24,373

Bharti’s Executor’s Account
Dr.	Cr.
Date	Particulars	J.F.	AmountRs	Date	Particulars	J.F.	AmountRs
2016				2016
June 12	Bank		24,373	June 12	Bharti’s Capital A/c		24,373
			24,373				24,373

Working Notes:

1. Bharti’s share of profit = Profit is 10% of sales

Sales during the last year for that period were Rs 1,00,000

If sales are Rs 1,00,000, then the profit is Rs 10,000

2. Bharti’s Share of Goodwill

Goodwill of the firm = Average Profit × Number of Years Purchase

Or, 9,000 − 20% of 9,000 = 9,000 − 1,800 = Rs 7,200

Goodwill of the firm = 7,200 × 2 = Rs 14,400

3. Gaining Ratio = New Ratio − Old Ratio

Gaining ratio between Arti and Seema = 3:1

4. Interest on Capital for 73 days, i.e. from April 1, 2016 to June 12, 2016

Interest on capital = Amount of Capital × Ratio of Interest × Period 

Question 10:

Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as on March 31, 2015 was as follows:

Books of Nithya, Sathya and Mithya Balance Sheet at March 31, 2015
Liabilities	AmountRs	Assets	AmountRs
Creditors	14,000	Investments	10,000
Reserve Fund	6,000	Goodwill	5,000
Capitals:		Premises	20,000
Nithya	30,000		Patents	6,000
Sathya	30,000		Machinery	30,000
Mithya	20,000	80,000	Stock	13,000
		Debtors	8,000
		Bank	8,000
	1,00,000		1,00,000

Mithya dies on August 1, 2015. The agreement between the executors of Mithya and the partners stated that:

(a) Goodwill of the firm be valued at  times the average profits of last four years. The profits of four years were : in 2011-12, Rs 13,000; in 2012-13, Rs 12,000; in 2013-14, Rs 16,000; and in 2014-15, Rs 15,000.

(b) The patents are to be valued at Rs 8,000, Machinery at Rs 25,000 and Premises at Rs 25,000.

(c) The share of profit of Mithya should be calculated on the basis of the profit of 2014-15.

(d) Rs 4,200 should be paid immediately and the balance should be paid in 4 equal half-yearly instalments carrying interest @ 10%.

Record the necessary journal entries to give effect to the above and write the executor’s account till the amount is fully paid. Also prepare the Balance Sheet of Nithya and Sathya as it would appear on August 1, 2015 after giving effect to the adjustments.

ANSWER:

Books of Nithya and Sathya Journal
Date	Particulars	L.F.	AmountRs	AmountRs
2015
Aug. 1	Nithya’s Capital A/c	Dr.		2,500
	Sathya’s Capital A/c	Dr.		1,500
	Mithya’s Capital A/c	Dr.		1,000
	To Goodwill A/c				5,000
	(Goodwill written off among all the partners)
Aug. 1	Patents A/c	Dr.		2,000
	Premises A/c	Dr.		5,000
	To Revaluation A/c				7,000
	(Increase in the value of patents and premises)
Aug. 1	Revaluation A/c	Dr.		5,000
	To Machinery A/c				5,000
	(Decrease in the value of machinery)
Aug. 1	Revaluation A/c	Dr.		2,000
	To Nithya’s Capital A/c				1,000
	To Sathya’s Capital A/c				600
	To Mithya’s Capital A/c				400
	(Profit on revaluation of assets and liabilities transferredto Partners’ Capital Account)
Aug. 1	Reserve Fund A/c	Dr.		6,000
	To Nithya’s Capital A/c				3,000
	To Sathya’s Capital A/c				1,800
	To Mithya’s Capital A/c				1,200
	(Reserve Fund transferred to Partners’ Capital Account)
Aug. 1	Nithya’s Capital A/c	Dr.		4,375
	Sathya’s Capital A/c	Dr.		2,625
	To Mithya’s Capital A/c				7,000
	(Mithya’s share of goodwill adjusted to Nithya’s andSathya’s Capital Account in their gaining ratio, 5:3)
Aug. 1	Profit and Loss A/c (Suspense)	Dr.		1,000
	To Mithya’s Capital A/c				1,000
	(Profit till date of death credited to Mithya’s CapitalAccount)
Aug. 1	Mithya’s Capital A/c	Dr.		28,600
	To Mithya Executors A/c				28,600
	(Mithya’s Capital Account transferred to her executoraccount)
Aug. 1	Mithya Executor’s A/c	Dr.		4,200
	To Cash A/c				4,200
	(Cash paid to Mithya’s executor)

Mithya Executor’s Account
Dr.	Cr.
Date	Particulars	J.F.	AmountRs	Date	Particulars	J.F.	AmountRs
2015				2015
Aug. 1 2016	Bank		4,200	Aug. 1 2016	Mithya’s Capital A/c		28,600
Jan. 31	Bank (6,100 + 1220)		7,320	Jan. 31	Interest (24,400×10100×612)(24,400×10100×612)		1,220
Mar. 31	Balance c/d		18,605	Mar. 31	Interest (18,300×10100×212)(18,300×10100×212)		305
			30,125					30,125
2016				2016
July 31 2017	Bank (6,100 + 305 + 610)		7,015	April 01 July 31 2017	Balance b/d Interest (18,300×10100×412)(18,300×10100×412)		18,605 610
Jan. 31	Bank (6,100 + 610)		6,710	Jan. 31	Interest (12,200×10100×612)(12,200×10100×612)		610
Mar. 31	Balance c/d		6202	Mar. 31	Interest (6,100×10100×212)(6,100×10100×212)		102
			19,927				19,927
2017				2017
July 31	Bank (6,100 + 102 + 203)		6,405	April 01	Balance b/d		6,202
				July 31	Interest (6,100×10100×412)(6,100×10100×412)		203
			6,405					6,405

Balance Sheet As on August 31, 2015
Liabilities	AmountRs	Assets	AmountRs
Creditors	14,000	Investments	10,000
Mithya’s Executor’s Loan A/c	24,400	Premises	25,000
Partners’ Capital A/c		Machinery	25,000
Nithya	27,125		Stock	13,000
Sathya	28,275	55,400	Debtors	8,000
		Patents	8,000
		Bank (8,000 – 4,200)	3,800
		Profit and Loss (Suspense)	1,000
	93,800		93,800

Working Notes:

1.

Partners’ Capital Accounts
Dr.	Cr.
Particulars	Nithya	Sathya	Mithya	Particulars	Nithya	Sathya	Mithya
Goodwill	2,500	1,500	1,000	Balance b/d	30,000	30,000	20,000
Mithya’s Capital A/c	4,375	2,625		Revaluation A/c	1,000	600	400
Mithya’s Executor’s A/c			28,600	Reserve Fund	3,000	1,800	1,200
Balance c/d	27,125	28,275		Profit and Loss A/c (Suspense)			1,000
				Nithya’s Capital A/c			4,375
				Sathya’s Capital A/c			2,625
	34,000	32,400	29,600		34,000	32,400	29,600

2. Mithya’s Share of Profit:

Previous year’s profit × Proportionate Period × Share of Profit 

3. Mithya’s share of Goodwill

Goodwill of a firm = Average Profit × Number of Year’s Purchase

4. Gaining Ratio = New Ratio – Old Ratio

Gaining Ratio between Nithya and Sathya = 5:3

In This Post we are  providing Chapter- 3 RECONSTITUTION OF PARTNERSHIP FIRM :ADMISSION OF A PARTNER NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON RECONSTITUTION OF PARTNERSHIP FIRM :ADMISSION OF A PARTNER

Question 1.
A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. D was admitted into the firm with 1/4th share in profit, which he got 3/16th from A and 1/16th from B. The total capital of the firm as agreed upon was ₹ 1,20,000 and D brought in cash equivalent to 1/4th of this amount as his capital. The capital of other partners also had to be adjusted in the ratio of their respective share in profits by bringing in or paying cash. The capitals of A, B and C after all adjustments related to revaluation of assets and reassessment of liabilities were ₹ 40,000; ₹ 35,000 and ₹ 30,000 respectively.
Calculate the new capitals of A, B and C and record the necessary journal entries for the above transactions.
Answer:

Question 2.
P, Q and R were partners in a firm sharing profits and losses equally. S was admitted as a new partner for 1/4th share in the profits. The total capital of the new firm as agreed between P, Q, R and S was ₹ 2,00,000 and S brought in cash equivalent to 1/4th of this amount as his capital. The capitals of P, Q and R were also to be adjusted in their profit sharing ratio by bringing in or paying off cash as the case may be. The capitals of P, Q and R after doing adjustments related to revolution of assets and reassessment of liabilities were ₹ 40,000; ₹ 50,000 and ₹ 60,000 respectively.
Calculate the new capital of P, Q and R pass necessary journal entries for the above transactions in the books of the firm.
Answer:

Question 3.
Anita, Geeta, Sunita and Lata were partners in a firm. They admitted Kavita as a new partner for 1/5th share in the profits. Kavita acquired her share equally from Anita, Geeta, Sunita and Lata. The total capital of the new firm was agreed at ₹ 4,00,000. Kavita brought cash equal to 1/5th of the total capital as her capital and the capital of Anita, Geeta, Sunita and Lata were to be adjusted according to the new profit sharing ratio. For this necessary cash was to be brought by or paid to Anita, Geeta, Sunita and Lata as the case may be. After doing necessary adjustments related to revaluation of assets and reassessment of liabilities the balances in the capital accounts of Anita, Geeta, Sunita and Lata were Anita ₹ 80,000; Geeta ₹ 85,000; Sunita ₹ 75,000 and Lata ₹ 80,000.
Calculate the new capitals of Anita, Geeta, Sunita and Lata and pass necessary journal entries for the above transactions in the books of the firm.
Answer:

Question 4.
A business earned average profits of ₹ 6,00,000 during the last few years. The normal rate of profits in the similar type of business is 10%. The total value of assets and liabilities of the business were ₹ 22,00,000 and ₹ 5,60,000 respectively. Calculate the value of goodwill of the firm by super profit method if the good will is
valued at 2 1/2 years’ purchase of super profits. (CBSE Outside Delhi 2014)
Answer:

Question 5.
Geeta, Sunita and Anita were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 1.1.2015 they admitted Yogita as a new partner for 1/10 th share in the profits. On Yogita’s admission, the Profit and Loss Account of the firm was showing a debit balance of ₹ 20,000 which was credited by the accountant of the firm to the capital accounts of Geeta, Sunita and Anita in their profit sharing ratio. Did the accountant give correct treatment₹ Give reason in support of your answer.
Answer:
No, the accountant didn’t give correct treatment as capital account of the partners are to be debited.

Question 6.
Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March, 2017 their Balance Sheet was as follows:

On 1.4.2017, they admitted Elina as a new partner for l/3rd share in the profits on the following conditions :

(i) Elina will bring ₹3,00,000 as her capital and ₹ 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of ₹5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of ₹8,000 will be created for the same. Prepare Revaluation Account and Partners’ Capital Accounts. (CBSE 2018-19)
Answer:

Question 7.
P & K were partners in a firm. On March 31, 2017 their Balance Sheet was as follows: Balance Sheet as at March 31, 2017.

On April 1,2017, they decided to admit C as a new partner for 1/4th share in profits on the following terms:

(i) C’s Loan will be converted into his capital.
(ii) C will bring his share of goodwill premium by cheque. Goodwill of the firm will be calculated on the basis of Average Profits of previous three years. Profits for the year ended March 31, 2015 and March 31, 2016 were ₹ 55,000 and ₹ 1,00,000 respectively.
(iii) 10% depreciation will be charged on Plant & Machinery and Land & Building will be appreciated by 5%.
(iv) Capitals of P & K will be adjusted on the basis C’s capital. Adjustments be done through bank and in case required overdraft facility be availed.
Pass necessary Journal entries on C’s admission. (CBSE Sample Paper 2017-18)
Answer:

Question 8.
Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan. 01,2014 they admitted Vimal for 1/5 share in the profits. The Balance Sheet of Ashish and Dutta as on Dec. 31, 2013 was as follows:


It was agreed that:
(i) The value of Land and Building be increased by ₹ 15,000.
(ii) The value of plant be increased by ₹ 10,000.
(iii) Goodwill of the firm be valued at ₹ 20,000.
(iv) Vimal to bring in capital to the extent of l/5th of the total capital of the new firm. Record the necessary journal entries and prepare Balance Sheet after Vimal’s admission.
Answer:

Question 9.
Divya, Yasmin and Fatima are partners in a firm, sharing profits and losses in 11 : 7 : 2 respectively. The balance sheet of the firm as on 31st March 2018 was as follows:

On 1.4.2018, Aditya is admitted as a partner for one-fifth share in the profits with a capital of ₹4,50,000 and necessary amount for his share of goodwill on the following terms:
(i) Furniture of ₹2,40,000 were to be taken over Divya, Yasmin and Fatima equally.
(ii) A creditor of ₹ 7,000 not recorded in books to be taken into account.
(iii) Goodwill of the firm is to be valued at 2.5 years purchase of average profits of last two years. The profit of the last three years were:
2015-16 ₹6,00,000; 2016-17 ₹2,00,000; 2017-18 ₹6,00,000
(iv) At time of Aditya’s admission Yasmin also brought in 50,000 as fresh capital
(v) Plant and Machinery is re-valued to ₹ 2,00,000 and expenses outstanding were brought down to ₹ 9,000. Prepare Revaluation Account, Partners Capital Account and the balance sheet of the reconstituted firm. (CBSE Sample Paper 2018-19)
Answer:

Question 10.
P and Q were partners in a firm sharing profits in 3 : 2 ratio. R was admitted as a new partner for 1/4x share in the profits on April 1, 2015. The Balance Sheet of the firm on March 31, 2015 was as follows:

The terms of agreement on R’s admission were as follows:
(a) R brought in cash 60,000 for his capital and 30,000 for his share of goodwill.
(b) Building was valued at 1,00,000 and Machinery at 36,000.
(c) The capital accounts of P and Q were to be adjusted in the new profit-sharing ratio. Necessary cash was to be brought in or paid off to them as the case may be.
Prepare Revaluation Account, Partner’s Capital Account and the Balance Sheet of P, Q and R. (CBSE Sample Paper 2016)
Answer:

In This Post we are  providing Chapter- 2 ACCOUNTING FOR PARTNERSHIP: BASIC CONCEPT NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON ACCOUNTING FOR PARTNERSHIP: BASIC CONCEPT

1: Radha and Raman are partners in a firm sharing profits and losses in the ratio of 5:2. Capital contributed by them is Rs. 50,000 and Rs. 20,000 respectively. Radha was given salary of Rs. 10,000 and Raman Rs. 7,000 per annum. Radha advanced loan of Rs. 20,000 to firm without any agreement to rate of interest in deed while in deed rate of interest on capital was mentioned as 6% p.a. Profits for the year are Rs. 29,400. Prepare Profit and Loss Appropriation Account for the year ending 31st March 2015.
Solution:
Profit and Loss Appropriation account
For the year ending on 31.03.2015
Dr. Cr.

Particulars	Rs.	Particulars	Rs.
To Interest on Capital:  Radha 3,000 Raman 1,200 To Partner’s Salary Radha 10,000 Raman 7,000 To Profits transferred to capital A/cs of: Radha 5,000 Raman 2,000	4,200 17,000   7,000	By Profit and Loss A/c  (Net Profits)29,400 Less: Interest On Radha’s loan 1,200	28,200
28,200	28,200

When appropriation are more than available profits
In such case available profits are distributed in the ratio of appropriation.

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2: Ram & Sham are partners sharing profits & losses in ratio of 3:2. Ram being non-working partner contributes Rs. 20,00,000 as his capital & Shyam being a working parties, gets a salary of Rs. 8000 per month. As per partnership deed interest is paid @ 8% p.a. & salary is allowed. Profits before providing that for year ending 31st March 2015 were Rs. 80,000. Show the distribution of profits.
Solution:
Profit & Loss Appropriation Account for the year ended 31.3.15
Dr. Cr.

Particulars	Rs.	Particulars	Rs.
To Ram’s Capital A/c  (Interest) To Shyam’s Capital A/c (Salary)	50,000  30,000	By Profit & Loss A/c  (Net Profits)	80,000
80,000	80,000

working Notes: Interest on capital == Rs. 1,60,000
Salary =  =Rs. 96,000
Total 2,56,000
Ratio of Interest & Salary = 1,600,000 : 96,000 = 5 : 3
Profits share given to Ram = Rs. 50,000
Shyam = = Rs. 30,000

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3: Amit and Sumit commenced business as partners on 01.04.2014. Amit contributed Rs. 40,000 and Sumit Rs. 25, 000 as their share of capital. The partners decided to share their profits in the ratio of 2:1. Amit was entitled to salary of Rs. 6,000 p.a. Interest on capital was to be provided @ 6% p.a. The drawings of Rs. 4, 000 was made by Amit and Rs. 8,000 was made by Sumit. The profits after providing salary and interest on capital for the year ended 31^st March, 2015 were Rs. 12,000.
Draw up the capital accounts of the partners
1. When capitals are fluctuating
2. When capitals are Fixed
Solution:
1. When capitals are fluctuating
Capital Accounts of Amit and Sumit
Dr. Cr.

Particulars	Amit  (Rs.)	Sumit  (Rs.)	Particulars	Amit  (Rs.)	Sumit  (Rs.)
To Drawing A/c  To Balance c/d	4,000  52,400	8,000  22,500	By Balance A/c (Capital)  By Salary A/c By Interest on capital A/c By Profit and Loss Appropriation A/c	40,000  6,000 2,400 8,000	25,000  1,500 4,000
56,400	30,500	56,400	30,500

When capital are Fixed Capital accounts
Dr. Cr.

Particulars	Amit  (Rs.)	Sumit  (Rs.)	Particulars	Amit  (Rs.)	Sumit  (Rs.)
To Balance c/d	40,000	25,000	By Balance A/c (Capital)	40,000	25,000
40,000	25,000	40,000	25,000

Current Accounts
Dr. Cr.

Particulars	Amit  (Rs.)	Sumit  (Rs.)	Particulars	Amit  (Rs.)	Sumit  (Rs.)
To Drawing A/c  To Balance c/d	4,000  12,400	8,000  –	By Salary A/c  By Interest on capital A/c By Profit and Loss Appropriation A/c To Balance c/d (Closing Balance)	40,000  2,400 8,000	1,500  4,000 2,500
16,400	8,000	16,400	8,000

Working Notes: Profits after salary and interest Rs. 12,000
Amit share =  = 8,000
Sumit share = = 4,000
Difference between Fixed Capital Account & Fluctuating Capital Account:

Basis	Fixed Capital Account	Fluctuating Capital Account
1. No. of Accounts maintained	Two accounts for each partner Fixed Capital Account & current Account.	Only one account is maintained for each partner, i.e., capital Account.
2. Balance chane	Balance does not change except under specific circumstances (introduction of additional capital and capital withdrawn)	Balance changes frequently from period to period.
3. Adjustments	All adjustments for drawing interest on drawing, interest on capital, salary and profit/loss are made in current account.	All adjustments for drawings, in terest on drawing & capital, salary, profit/loss are made in Capital Accounts.
4. Balance	Fixed Capital Account. Capital Account has credit balance always However, current account may have debit or credit balance.	Fluctuating Capital account can have debit or credit balance.

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4: X and Y invested Rs. 20,000 & Rs. 10,000. Interest on capital is allowed @ 6% per annum. Profits are shared in ratio of 2 : 3. Profits for year ending 11.3.2015 is Rs. 1,500. Show allocation of profits when partnership deed.
(a) Allows interest on capital & deed is silent on treating interest as charge.
(b) Interest is charge against profit.
Solution:
(a) When partnership deed is silent on treating interest as a charge,
Profit & Loss Appropriation Account for the year ending 31.3.2015
Dr. Cr.

Particulars	(Rs.)	Particulars	(Rs.)
To Interest on Capital  X 1000 Y 500	1,500	By Profit & Loss A/c  (Net Profits)	1,500
1,500	1,500

Working Notes: Interest on X’s Capital =  = 1200
Y’s Capital =  = 600
Total Interest = 1800
Ratio of Interest = 1200 : 600 = 2 : 1
Interest allowed to partner = 
Interest to X =  = Rs. 1000
Interest allowed by y =  = Rs. 500
(b) Interest is charge on profit – In such case full interest will be given & loss is transferred to partner’s capital accounts.
Profit & Loss Appropriation is not prepared in this case instead profit & Loss Account is prepared & deficit is treated as loss.
Profit & Loss Account
For the year ending on 31.3.2015
Dr. Cr.

Particulars	(Rs.)	Particulars	(Rs.)
To Interest on Capital  X1200 Y 600	1800	By Profit before Interest  By Loss transferred to Capital A/cs X120 Y 180	1,500  300
1800	1800

(a) In case of Sufficient Profits
Profit and Loss Appropriation A/c Dr.
To Interest on Capital A/c
(Being interest on capital transferred to P & L Appropriation A/c
(b) In case of Insufficient Profits or Losses
Profit & Loss/Profit and Loss Adjustment A/c Dr.
To Interest on Capital A/c
(Being interest on capital transferred to P & L Adjustment A/c)

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5: A and B are partners in business. Their capitals at the end of year were Rs. 48,000 & Rs. 36,000 respectively. During the year ended March 31st 2015 A’s Drawings and B’s drawings were Rs. 8, 000 & Rs. 12, 000 respectively. Profits before charging interest on capital during the year were Rs. 32, 000. Calculate Interest on partners’ capitals @ 10% p.a.
Solution
Statement showing calculation of opening capitals
 

Particulars	A(Rs.)	B(Rs.)
Closing Capital  Add: Drawings already credited Less: Profits already credited Opening capitals or capitals in the beginning Interest on Capital @ 10% p.a.	48,000  8000	36,000  12,000
56,000  16,000	48,000  16,000
40,000	32,000
4,000	3,200

 
For additional capital interest is calculated for period for which capital is utilized e.g. if additional capital is introduced on 1 April in firm where accounts are closed on 31st December.
Interest = 
As money is utilized for 9 months

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6: Aarushi and Simran are partners in a firm. During the year ended on 1st March, 2015 Aarushi makes the drawings as under:

Date of Drawing	Amount (Rs.)
01-08-2015  31-12-2014 31-03-2015	5,000  10,000 15,000

Partnership Deed provided that partners are to be charged interest on drawing @ 12% p.a. Calculate the interest chargeable to Aarushi Drawing by using Simple Interest Method and Product Method.
Solution:
 
1. Simple Interest Method

Date of Drawing	Amount (Rs.)	Months till March 31, 2014	Interest @ 12% pm(Rs.)
01-08-2015  31-12-2014 31-03-2015	5,000  10,000 15,000	08  03 00	400  300 000
700

Before charging interest on capital the year were Rs. 32,000. Calculate Interest on partners’ capitals @ 10% p.a.
Solution:
Statement showing calculation of opening capitals

Particulars	A(Rs.)	B(Rs.)
Closing Capital  Add: Drawings already credited Less: Profits already credited Opening capitals or capitals in the beginning Interest on Capital @ 10% p.a.	48,000  8000	36,000  12,000
56,000  16,000	48,000  16,000
40,000	32,000
4,000	3,200

For additional capital interest is calculated for period for which capital is utilized e.g. if additional capital is introduced on 1 April in firm where accounts are closed on 31st December.
Interest = 
As money is utilized for 9 months
2. Product Method

Date of Drawing	Amount of Drawings (Rs.)	Months for which Amount has Withdrawn till December 31, 2014	Product  (Rs.)
01-08-2015  31-12-2014 31-03-2015	5,000  10,000 15,000	08  03 00	40,00  30,00 00000
70,000

Interest on Drawing = (in months)
=  = Rs. 700

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7: Calculate interest on drawings of Mr. X @ 10% p.a. if he withdrawn Rs. 1000 per month (i) in the beginning of each Month (ii) In the middle each of month (iii) at end of each month.
Total Amount with withdrawn = Rs. =12, 000.
Solution:
(i) Interest on Drawing = 
 = Rs. 650
(ii) Interest on drawing = 
= Rs. 600
(iii) Interest on drawing = 
= Rs. 550

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8: Calculate interest on drawing of Vimal if the withdrew Rs. 48000 Quarter withdrawn evenly (i) at beginning of each Quarter (ii) in the middle of each of at end (iii) Quarter. Rate of interest is 10% p.a.
Solution:
Case I – Drawing made on beginning of each Quarter
Interest on drawing = 
= Rs. 3,000
Case II – Drawing made in middle of each quarter
Interest on drawing = 
= Rs. 2,400
Case III – Drawing made at end of each quarter
Interest on drawing = 
= Rs. 1,800
Similarly Interest can be calculated by following formulas Half yearly Drawings for year when
(a) Drawings are made in the beginning of each period (half-year)
Interest on drawing = 
(b) Drawings are made in the middle of each period (half year)
Interest on drawing = 
(c) Drawings are made at the end of each period (half year)
Interest on drawing = 
For monthly drawings for 6 months (Last 6 months)
 
For monthly drawings for 6 months (Last 6 months)
(a) Drawings are made in the beginning of each month
Interest = 
(b) Drawings are made in the middle of each month
Interest = 
(c) Drawings are made at the end of each month
Interest = 

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9: A and B entered into partnership on 1st April, 2014 without any partnership deed. They introduced capitals of Rs. 5,00,000 and Rs. 3,00,000 respectively. On 31st October, 2014, A advanced Rs. 2,00,000 by way of loan to the firm without any agreement as to interest.
The Profit and Loss Account for the year ended 31-03-2015 showed a profit of Rs. 4,30,000 but the partners could not agree upon the amount of interest on Loan to be charged and the basis of division of profits. Pass a Journal Entry for the distribution of the Profits between the partners and prepare the Capital A/cs of both the partners and Loan A/c of ‘A’.
Solution:
Profit and Loss Appropriation Account
For the year ending on 31st March, 2015
Dr. Cr.

Particulars	(Rs.)	Particulars	(Rs.)
To Profits transferred to Capital A/c of :  A 2,12,500 B 2,12,500		By Profit and Loss A/c  Net Profits 4,30,000 Less : Int. on A’s Loan 5,000	1,500
4,25,000	4,25,000

 
Partner’s Capital A/cs
Dr. Cr.

Date	Particulars	A Rs.	B Rs.	Date	Particulars	A Rs.	B Rs.
1.3.2015	To balance c/d	7,12,500	5,12,500	1.4.2014  31.3.2015	By Bank A/c  By Profit and Loss appropriation A/c	500000  2,12,500	300000  2,12,500
7,12,500	5,12,500	7,12,500	5,12,500

 
Journal
Dr. Cr.

Date	Particulars	LF.	Debit(Rs.)	Debit(Rs.)
31.3.2015	Profit and Loss Appropriation A/C Dr.  To A’s Capital A/c To B’s Capital A/c (Being profit distributed among the partners)		4,25,000	2,12,500  2,12,500

 
A’s Loan A/c
Dr. Cr.

Date	Particulars	Amount (Rs.)	Date	Particulars	Amount (Rs.)
2015 March, 31	To A’s Capital c/d	2,05,000	2014 Oct., 31  2015 Mar., 31	By Bank A/c  By interest on Loan A/c	2,00,000  5,000
2,05,000	2,05,000

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10: Manoj Sahil and Dipankar are partners in a firm sharing profit and losses equally.
The have omitted interest on Capital @ 10% per annum for there years ended on 31st March, 2015. Their fixed Capital on which interest was to be calculated throughout were:
Manoj Rs. 3,00,000
Sahil Rs. 2,00,000
Dipankar Rs. 1,00,000
Give the necessary adusting journal entry with working notes.
 
Solution:
Books of Manoj, Sahil and Dipankar
Journal
 

Date	Particulars	LF.	Debit  (Rs.)	Debit  (Rs.)
31.3.2015	Dipankar’s Current A/c Dr.  To Manoj’s Current A/c (Being adjustment entry passed)		30,000	30,000

 
STATEMENT SHOWING ADJUSTMENT
 

Date	Particulars (Rs.)	Manoj  (Rs.)	Sahil  (Rs.)	Dipankar  (Rs.)
	Amount to be given  —– Interest on Capital	90,000	60,000	30,000
Total A	90,000	60,000	30,000
Amount already given to be taken back now ——) :  —- Profit taken back from the partners in their profit sharing ratio ———— 160,000+30,000 = 1,80,000)	60,000	60,000	60,000
	Effect (A-B)	30,000	Nil	30,000
Credit		Debit

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In This Post we are  providing Chapter- 1 ACCOUNTING FOR NOT-FOR-PROFITING ORGANISATION NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON ACCOUNTING FOR NOT-FOR-PROFITING ORGANISATION

Question 1:

What is subscription? How is it calculated?

ANSWER:

Subscription is the main source of income for an NPO besides entrance fees, donations, grants, etc. Subscriptions refer to the amount of money paid by the members on periodic basis for keeping their membership with the organisation alive. It is paid monthly, quarterly, half yearly or annually by the members.

It is shown in the debit side of the Receipt and Payment Account with the total amount received during the year that may be related to the current period and to the previous and next accounting period.

While calculating subscription for the current period, advance subscription received for the current period in the previous period and outstanding subscription for the current period are added to the subscription received during the current period. Whereas, on the other hand, advance subscription received for the next accounting period during the current period and outstanding subscription for the preceding period are deducted from the subscription received during the current period.

Calculation of Subscription

Subscription received during the year		***
Add: Subscription received (in advance) during previous year for current year	***
Add: Subscription outstanding at the end of the year	***
		***
Less: Subscription received in advance for the next year	***
Less: Subscription outstanding for the previous year	***	***
## Subscription shown in Income and Expenditure Account		***

## This subscription is related to the current accounting period and is shown in the Income side of the Income and Expenditure Account.

Question 2:

What is Capital Fund? How is it calculated?

ANSWER:

Capital fund is the excess of NPOs’ assets over its liabilities. In other words, the excess of assets over the liabilities for a profit earning organisation is termed as capital and the same for an NPO is termed as capital fund. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from) the capital fund. It is also termed as Accumulated Fund.

Calculation of Capital Fund

Capital Fund at the beginning of the year		**
Add: Surplus from Income and Expenditure Account	**
Add: Subscription Amount (Capitalised amount)	**
Add: Life membership fee.	**	**
Less: Deficit from Income and Expenditure Account		**
Capital Fund at the end of the year		***

Question 3:

Explain the statement: “Receipt and Payment Account is a summarised version of Cash Book”.

ANSWER:

Receipts and Payments Account is a summary of the Cash Book. This account is prepared by those organisations which maintain their books on cash basis. All cash receipts are recorded on the Receipts side (i.e. Debit side) and all cash payments are recorded on the Payments side (i.e. Credit side) of Receipts and Payments Account. It is prepared on the basis of cash and bank transactions recorded in the Cash Book. It begins with the opening balance of cash and bank and ends with the closing balances of cash and bank (balancing figure) at the end of the accounting period. It records all the cash and bank transactions both of capital and revenue nature. It not only records the cash and bank transactions relating to the current accounting period, but also cash and bank receipts (or payments) received during the current accounting period that may be related to the previous or next accounting period. This account only helps us to ascertain the closing balance of the cash and bank and helps in assessing the cash position of an NPO. It also forms the basis for the preparation of Income and Expenditure Account.

Similarities between Receipt and Payments Account and Cash Book

The following are the features of Receipt and Payment Account that are common to those of Cash Book:

1. Nature: It is a summarised version of the Cash Book. Similar to the Cash Book, the Receipt and Payment Account is also a Real Account.

2. Nature of Transactions: It records only cash and bank transactions similar to a Two-Column Cash Book. Transactions other than cash and bank like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.

3. No distinction between Capital and Revenue items: It records all the cash and bank receipts and payments of both capital and revenue nature. Likewise, the transactions recorded in the Cash Book are also of both capital and revenue nature.

4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.

5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period. Similarly, a Cash Book also helps us to assess the cash position of an organisation.

Thus, on the basis of the above mentioned points and similarities, the statement ‘Receipt and Payment Account is a summarised version of Cash Book’ is justified.

Question 4 :

“Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern”. Explain the statement.

ANSWER:

Income and Expenditure Account (I&E) is similar to Profit and Loss Account (P&L), in the sense that the former is prepared by Not-for-profit-Organisations and the latter is prepared by profit earning organisations. Both the accounts are prepared on the accrual basis.

Similar to the P&L, all the expenses and losses pertaining to the current accounting period are recorded on the debit side (Expenditure side) and all the gains and income of the current accounting period are recorded on the credit side (Income side) of the I&E. The balancing figure of the I&E is surplus or deficit and that of the P&L is net profit or net loss. Both the accounts record only revenue items which are related to the current accounting period.

Similarities between Income and Expenditure Account and Profit and Loss Account

I&E Account of an NPO is akin to the Profit and Loss Account of a profit earning business in the following manners.

1. Nature of Account: Both the concerned accounts are nominal in nature.

2. Basis of Recording: Both the accounts record only revenue expenses and revenue income related to the current accounting period. The items of capital nature are not ignored while preparing these accounts.

3. Period: Transactions related to current year are recorded in Income and Expenditure account in the same manner in which profit and loss account is prepared. Transactions related to previous year or next year are excluded.

4. Adjustments: The treatment of adjustments like, outstanding expenses, prepaid expenses, income received in advance, income due but not received, depreciation, bad debts etc. is same as that in Profit and Loss Account. Thus, both the accounts are prepared on the accrual basis.

Question 5:

Distinguish between Receipts and Payments Account and Income and Expenditure Account.

ANSWER:

Basis of Difference	Receipts and Payments Account	Income and Expenditure Account
1. Nature	It is a summary of cash and bank transactions	It is a summary of current year income and expenses
2. Revenue and Capital	It records transactions related to both revenue and capital nature.	It records transactions related to revenue nature only.
3. Debit Side	Debit side of this account records cash and bank receipts during an accounting period.	Debit side of this account records expenses and losses incurred in the current accounting period.
4. Credit side	Credit side of this account records payments in cash and through cheques.	Credit side of this account records income and gains earned in the current accounting period.
5. Type of account	It is a Real Account	It is a Nominal Account
6. Period	It records receipts and payments made during the year that may be related to the current accounting period or the preceding period and the succeeding accounting period.	It only records income and expenditure made during the current accounting period.
7. Object	This account depicts the cash position of an NPO.	This account shows the net result in terms of surplus or deficits due to the business activities during the year.
8. Opening Balance	This account begins with the opening balance of cash in hand and cash at bank or overdraft.	Usually, it has no opening balance but sometimes surplus or deficits forwarded from the last accounting period (if not added to the Capital Fund) can be shown as the opening balance of this account.
9. Closing balance	The balancing figure of this account is expressed in terms of the closing balance of cash in hand and cash at bank or overdraft.	The balancing figure is expressed in terms of either surplus (if incomes > expenses) or deficit (if expenses > incomes).
10. Depreciation	It does not include non-cash items like depreciation, appreciation, etc.	It includes non-cash items like depreciation, bad-debts, provisions, etc. in order to ascertain the actual net profit or net loss.
11. Adjustment	Receipts and Payments during the year can be adjusted before preparation of the financial statements.	Adjustments regarding both cash and non-cash transactions can be made.
12. Transfer of Balance	The opening balance of this account is brought forward from the last year’s Receipts and Payments Account and the closing balance of this account is carried forward to the subsequent year’s Receipts and Payments Account and is shown in the Balance Sheet of the current accounting period.	If the closing balance of this account is surplus then it is added to the Capital Fund in the Balance Sheet. If the closing balance is deficit then it is deducted from the Capital Fund in the Balance Sheet.
13. System	It is prepared on cash basis.	It is prepared on accrual basis.

Question 6:

Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.

ANSWER:

Income and Expenditure Account (I&E) Account is a Nominal Account and is prepared on the accrual basis. It records all transactions of revenue nature that are related to the current accounting period (whether outstanding or prepaid) for which the books are maintained. All expenses and losses are recorded on the debit side (Expenditure side) and all income and gains are recorded on the credit side (Income side) of I&E Account. The closing balance or the balancing figure of I&E Account is termed as surplus (or deficit), if the sum total of the Income side exceeds (is lesser than) the sum total of the Expenditure side.

The following are the basic features of Income and Expenditure Account

1. Nature: It is a Nominal Account. The debit side of I&E records all expenses and losses and the credit side records all incomes and gains related to the current accounting period.

2. Basis: It is prepared on the basis of Receipt and Payment Account (R&P). All the revenues items whether incomes or expenditures are transferred from R&P.

3. Excludes Capital Transactions: The transactions those are capital in nature are excluded from this account. For example, only profit or loss on sale of fixed assets is recorded but the total amount of sales is not recorded since sale of fixed asset is considered as a capital receipt.

4. Akin to Profit and Loss Account: Income and Expenditure Account (I&E) is similar to the Profit and Loss Account in the sense that while the former is prepared to ascertain surplus or deficit during an accounting period the latter is prepared to ascertain net profit or net loss incurred during an accounting period.

5. Records only Current Year’s items: This account records only those transactions that are related to current accounting year. In other words, transactions related to the preceding or succeeding accounting period are excluded even if these transactions are realised in the current period.

6. Adjustments: Various cash and non-cash items like, outstanding expenses, prepaid expenses, income received in advance, income due but not received, depreciation, bad debts, etc. can be adjusted in this account.

7. Balancing Figure: The balancing figure of this account is expressed in terms of either surplus (if incomes > expenses) or deficit (if expenses > incomes). The surplus balance, if any, is added to the Capital Fund, whereas, the deficit balance, if any, is deducted from the Capital Fund.

Receipts and Payments Account is a summary of the Cash Book. All the cash receipts are recorded on the Receipts side (i.e. Debit side) and all the cash payments are recorded on the Payments side (i.e. Credit side) of Receipts and Payments Account. It is prepared on the basis of cash and bank transactions recorded in the Cash Book. It begins with the opening balance of cash and bank and ends with the closing balances of cash and bank (balancing figure) at the end of the accounting period. It records all the cash and bank transactions both of capital and revenue nature. It not only records the cash and bank transactions relating to the current accounting period but also cash and bank receipts (or payments) received during the current accounting period that may be related to the previous or next accounting period.

The following are the features of Receipt and Payment Account.

1. Nature: It is a Real Account. It is a summarised version of the Cash Book.

2. Nature of Transactions: It records only cash and bank transactions. Transactions other than cash and bank like depreciation, loss/ profit on sale of assets, etc. are not recorded in this account.

3. No distinction between Capital and Revenue items: It records all cash and bank receipts and payments of both capital and revenue nature.

4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.

5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period.

Question 7:

The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017:

Receipts	AmountRs	Payments	AmountRs
Balance from last year	2,270	Rent	6,600
Subscriptions	32,500	Electric charges	3,200
Life membership fee	3,250	Lecturer’s fee	730
Donation	2,500	Office expenses	1,480
Profit from entertainment	7,250	Printing and Stationery	1,050
Sale of old Books (books value Rs 1,000)	750	Legal fee	1,870
Interest	350	Books	6,500
		Furniture purchased	8,600
		Expenses on nukar drama	1,300
		Cash in hand	8,040
		Cash at bank	9,500
	48,870		48,870

You are required to prepare an Income and Expenditure Account after the following adjustments:

(a) Subscription still to be received are Rs 750, but subscription include Rs 500 for the year 2018.

(b)  In the beginning of the year the Sangh owned building Rs 20,000 and furniture Rs 3,000 and Books Rs 2,000.

(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.

ANSWER:

Books of  Nari Kalyan SamitteeIncome and Expenditure Account as on Dec. 31, 2017
Dr.			Cr.
Expenditure	AmountRs	Income	AmountRs
Rent	6,600	Subscription	32,500
Electric Charges	3,200	Add: Outstanding for 2017	750
Lecturer’s fee	730	33,250
Office Expenses	1,480	Less: Advance for 2018	(500)	32,750
Printing and Stationery	1,050	Donation	2,500
Legal Fee	1,870	Profit from Entertainment	7,250
Depreciation on:		Interest	350
Books	750
Furniture	580
Building	1,000	2,330
Expenses on Nukar Drama	1,300
Loss on Sale of Books	250
Surplus	24,040
	42,850		42,850

Balance Sheet as on Dec. 31, 2016
Liabilities	AmountRs	Assets	AmountRs
Capital Fund as Dec. 31, 2016	27,270	Building	20,000
(Balancing Figure)		Furniture	3,000
		Books	2,000
		Cash and Bank	2,270
	27,270		27,270

Balance Sheet as on Dec. 31, 2017
Liabilities	AmountRs	Assets	AmountRs
Capital Fund	27,270		Building	20,000
Add: Life Membership Fees	3,250		Less: 5% Depreciation	(1,000)	19,000
Add: Surplus	24,040	54,560
		Furniture	3,000
Advance Subscription for 2018	500	Add: Purchases	8,600
			11,600
		Less: 5% Depreciation	580	11,020
		Books	2,000
		Add: Purchases	6,500
		8,500
		Less: Sales	1,000
				7,500
		Less: 5% Depreciation	750	6,750
		Cash in Hand		8,040
		Cash at Bank		9,500
		Subscription Outstanding		750
	55,060		55,060

Question 8:

Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2017:

Receipt and Payment Account for the year ending December 31, 2017
Receipts	AmountRs	Payments	AmountRs
Balance b/d	7,890	Salary	11,000
Subscriptions	52,000	Electric charges	5,500
Life member ship fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing and Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports goods (Costing Rs 2,200)	2,500	Repair of ground	2,000
Sale of Old Newspaper	750	Furniture purchased	7,700
Legacy	37,500	Sports equipments	12,000
		Cash in Hand	12,690
		Cash at Bank	10,000
		Fixed Deposit (on 1.10.17 for 10% p.a)	30,000
	1,33,290		1,33,290

Other Information:

Subscription outstanding was on December 31, 2016 Rs 1,200 and Rs 3,200 on December 31, 2017. Locker rent outstanding on December 31, 2017 Rs 250. Salary outstanding on December 31, 2017 Rs 1,000.

On January 1, 2017, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).
 

ANSWER:

Indian Sports ClubIncome and Expenditure Account as on Dec. 31, 2017
Dr.			Cr.
Expenditure	AmountRs	Income	AmountRs
Salary	11,000		Subscriptions	52,000
Add: Outstanding for 2017	1,000	12,000	Add: Outstanding for 2017	3,200
Electric Charges	5,500		55,200
Office Expenses	4,100	Less: Outstanding for 2016	(1,200)	54,000
Printing and Stationery	2,300
Repair of Ground	2,000	Locker Rent	1,250
Depreciation on:		Add: Outstanding for 2017	250	1,500
Furniture	1,970
Building	3,600		Entrance Fees	3,200
Sports Equipments	2,730	8,300	Profit on Sale of Sports
Surplus	26,300	Equipments (Rs 2,500 – Rs 2,200)	300
		Sale of Old Newspapers	750
		Accrued Interest	750
	60,500		60,500

Balance Sheet as on January 01, 2016
Liabilities	AmountRs	Assets	AmountRs
Capital Fund (Balancing Figure)	74,590	Subscription Outstanding	1,200
			Building	36,000
		Furniture	12,000
		Sports Equipments	17,500
		Cash and Bank	7,890
	74,590		74,590

Balance Sheet as on Dec. 31, 2017
Liabilities	AmountRs	Assets	AmountRs
Salary Outstanding	1,000	Subscripting Outstanding	3,200
Tournament Fund	26,000		Locker Rent Outstanding	250
Less: Tournament Expenses	18,500	7,500	Building	36,000
		Less: 10% Depreciation	(3,600)	32,400
Capital fund	74,590
Add: Life Membership Fee	2,200		Furniture	12,000
Add: Legacy	37,500		Add: Purchases	7,700
Add: Surplus	26,300	1,40,590		19,700
		Less: 10% Depreciation	(1,970)	17,730
		Sports Equipments	17,500
		Add: Purchases	12,000
			29,500
		Less: Sales	(2,200)
			27,300
		Less: 10% Depreciation	(2,730)	24,570
		Billiard Table	17,500
		Cash in hand	12,690
		Cash at Bank	10,000
		Fixed Deposit	30,000
		Add: Accrued Interest	750	30,750
	1,49,090		1,49,090

Question 9:

From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017.           

Receipt and Payment Account for the year ending March 31, 2017
Receipts	AmountRs	Payments	AmountRs
Cash in hand as on 1.4.16	6,800	Salaries	24,000
Subscription	60,200	Traveling Expenses	6,000
Donation	3,000	Stationery	2,300
Sale of furniture (Book value Rs 6000)	4,000	Rent	16,000
Entrance fee	800	Repair	700
Life membership fee	7,000	Books purchased	6,000
Interest on investment (@ 5% for full year)	5,000	Building purchased	30,000
		Cash in hand as 31.3.2017	1,800
	86,800		86,800

Additional Information:

	As on1.04.2016	As on31.03.2017
(i)	Subscription received in advance	1,000	3,200
(ii)	Outstanding subscription	2,000	3,700
(iii)	Stock of stationery	1,200	800
(iv)	Books	13,500	16,500
(v)	Furniture	16,000	8,000
(vi)	Outstanding rent	1,000	2,000

ANSWER:

Books of Jan Kalyan ClubIncome and Expenditure Account as on 31 March 2017
Dr.			Cr.
Expenditure	AmountRs	Income	AmountRs
Loss on Sale of Furniture (Rs 6,000 – Rs 4,000)	2,000	Subscription	60,200
Salaries		24,000	Less: Outstanding for 2016	(2,000)
Traveling Expenses	6,000		58,200
Stationery	2,300		Add: Outstanding for 2017	3,700
Add: Opening Stock	1,200			61,900
	3,500		Add: Advance in 2016	1,000
Less: Closing Stock	(800)	2,700		62,900
		Less: Advance in 2017	(3,200)	59,700
Repairs	700
Rent	16,000		Donation	3,000
Less: Outstanding for 2016	(1,000)		Entrance Fees	800
	15,000		Interest on Investments	5,000
Add: Outstanding for 2017	2,000	17,000
Depreciation on Books	3,000
Depreciation on Furniture	2,000
Surplus	11,100
	68,500		68,500

Balance Sheet as on April 01, 2016
Liabilities	AmountRs	Assets	AmountRs
Advance Subscription	1,000	Cash in Hand	6,800
Outstanding Rent	1,000	Investment {5,000 × (100/5)}	1,00,000
Capital Fund (Balancing figure)	1,37,500	Subscription Outstanding	2,000
		Stock of Stationery	1,200
		Books	13,500
		Furniture	16,000
	1,39,500		1,39,500

Balance Sheet as on March 31, 2017
Liabilities	AmountRs	Assets	AmountRs
Advance Subscription	3,200	Subscription Outstanding	3,700
Outstanding Rent	2,000	Stock of Stationery	800
Capital Fund	1,37,500		Investments	1,00,000
Add: Life Membership Fees	7,000
Add: Surplus	11,100	1,55,600	Books	13,500
			Add: Purchases	6,000
			19,500
		Less: Depreciation	(3,000)	16,500
		Building	30,000
		Cash in Hand	1,800
		Furniture	16,000
		Less: Sales	6,000
			10,000
		Less: Depreciation	(2,000)	8,000
	1,60,800		1,60,800

Question 10:

Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

Receipt and Payment Account for the year ending March 31, 2017
Receipts	AmountRs	Payments	AmountRs
Opening Cash in hand	2,600	Rent	18,000
Entrance fees	3,200	Wages	7,000
Donation for building	23,000	Billiard table	14,000
Locker rent	1,200	Furniture	10,000
Life membership fee	7,000	Interest	2,000
Profit from entertainment	3,000	Postage	1,000
Subscription	40,000	Salary	24,000
		Cash in hand	4,000
	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:

Subscription outstanding on March 31, 2016 is Rs 1, 200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.

On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500

On March 31, 2017. The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.
 

ANSWER:

Books of Shankar Sports ClubIncome and Expenditure Account as on 31 Dec. 2017
Dr.			Cr.
Expenditure	AmountRs	Income	AmountRs
Rent	18,000		Entrance Fees	3,200
Add: Outstanding for 2017	1,500		Locker Rent	1,200
	19,500		Profit from Entertainment	3,000
Less: Outstanding for 2016	(1,500)	18,000
		Subscription	40,000
Wages	7,000	Less: Outstanding for 2016	(1,200)
Depreciation on Furniture	2,500		38,800
Interest	2,000	Add: Outstanding for 2017	2,300	41,100
Postage	1,000		Deficit (Balancing Figure)	6,100
Add: Opening Stock	300
	1,300
Less: Closing Stock	(200)	1,100
Salaries	24,000
	54,600		54,600

Balance Sheet as on  December 31, 2016
Liabilities	AmountRs	Assets	AmountRs
Rent Outstanding	1,500	Cash in Hand	2,600
10%  Loan	20,000	Subscription Outstanding	1,200
		Furniture	15,000
		Stock of Postage Stamps	300
		Capital fund Deficit (Balancing figure)	2,400
	21,500		21,500

Balance Sheet as on December 31, 2017
Expenditure	AmountRs	Income	AmountRs
Rent Outstanding	1,500	Subscription Outstanding	2,300
10%  Loan	20,000	Stock of Postage Stamps	200
Donation for Building	23,000	Billiard Table	14,000
Capital Fund	(2,400)		Furniture	15,000
Add: Life Membership Fee	7,000		Add: Purchases	10,000
Less: Deficit	(6,100)				25,000
		Less: Depreciation	(2,500)	22,500
		Cash in Hand	4,000
		* Capital Fund (Deficit)	1500
	44,500		44,500

* NOTE 1:

Capital Fund	(2,400)
Add:	Life Membership Fees	7,000
Less:	Deficit	(6,100)
	Net Deficit	(1,500)

In This Post we are  providing Chapter- 5 DISSOLUTION OF PARTNERSHIP FIRM NCERT MOST IMPORTANT QUESTIONS for Class 12 ACCOUNTANCY which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON DISSOLUTION OF PARTNERSHIP FIRM

1. What is Dissolution

 Dissolution means discontinuance of existing relationship among the partners. According to Indian Partnership Act, 1932, dissolution may be either of partnership or of a firm.

2.What is Dissolution of Partnership 

It changes the existing relationship between partners but the firm may continue its business as before.

3.What is Dissolution of Partnership Firm 

Dissolution of firm means dissolution of partnership among all the partners in the firm. In this case, business of the firm also comes to an end.

4.what are Modes of Dissolution of Partnership Firm

(i) Dissolution by mutual agreement                       (ii) Compulsory dissolution
(iii) Dissolution on the happening of an event         (iv) Dissolution by notice
(v) Dissolution by court

5.Settlement of Accounts in Case of Dissolution of Firm

(i)Treatment of Losses
Losses shall be paid, first out of profits, then out of partners’ capital and lastly, by the partners individually in their profit sharing ratio, if necessary.
(ii)Application of Assets
(a)Payment to outsiders/creditors
(b)Loans and advances of partners
(c)Payment of capital of partners
(d)The balance shall be divided among the partners in their profit sharing ratio

6.Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their balance sheet was as follows

On the above date the firm was dissolved
(i)Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
(ii)Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
(iii)Creditors were paid in full.
(iv)Expenses on realisation Rs 8,000 were paid by Hanif. Prepare realisation account. (All India 2014)
Ans.

7.Shanti and Satya were partners in a firm sharing profits in the ratio of 4:1. On 31st March, 2013 their balance sheet was as follows:

On the above date the firm was dissolved
(i)Shanti took over 40% of the stock at 10% less than its book value and the remaining stock was sold for Rs 40,000. Furniture realised Rs 80,000.
(ii)All unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of Rs 60,000.
(iii) Debtors realised Rs 55,000.
(iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare realisation account.    (Delhi 2014)
Ans.

8.Verma and Sharma were partners sharing profits in the ratio of 3 : 1. On 31st March, 2011, their balance sheet was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Creditors of Rs 50,000 took over land and building in full settlement of their claim.
(ii)Remaining creditors were paid in cash.
(iii)Machinery was sold at a depreciation of 30%.
(iv)Debtors were collected at a cost of Rs 500.
(v)Expenses on realisation were Rs 1,700. Pass necessary journal entries for dissolution of the firm.  (Delhi 2012)
Ans.

9.A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31st March, 2011, the balance sheet of the firm was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Building was taken over by creditors as their full and final payment.
(ii)Furniture was taken over by B for cash payment at 5% less than the book value.
(iii)Debtors were collected by a debt collection agency at a cost of Rs 5,000.
(iv)Stock realised Rs 70,500.
(v)B agreed to bear all realisation expenses. For this service, B is paid Rs 500. Actual expense on realisation amounted to Rs 1,000.Pass necessary journal entries for dissolution of the firm.(Delhi 2012)
Ans.

10.Sanjay and Sameer were partners in a firm sharing profits in the ratio of 2 : On 31st March, 2011 the balance sheet of the firm was as follows:

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows:
(i)Sanjay agrees to take over land and building at Rs 3,50,000 by paying cash.
(ii)Stock was sold for Rs 90,000.
(iii)Creditors accepted debtors in full settlement of their claim. Pass necessary journal entries for dissolution of the firm.(All India 2012)
Ans.

SHORT ANSWER TYPE QUESTION:

Q1.Why is the Enlightenment important for the development of sociology?

ANSWER:

The Enlightenment is important for the development of sociology because it helped in the development of secular, scientific and humanistic attitudes of mind during the late 17^th and 18^th centuries. This is because ‘enlightenment’ positioned the human being as the central figure of the universe, with rational thought at its core. Rational and critical thinking transformed human beings into both producer and user of all knowledge. Those who did not adopt the new ways of thinking and reasoning were deemed as deficient and primitive. This development influenced society as it was a product of human interaction. Thus, it helped sociology to grow as a rational and scientific subject with critical analysis.

Q2.How was the Industrial Revolution responsible for giving rise to sociology?

ANSWER:

The Industrial Revolution brought many changes in the society. The invention of new machines led to evolution in the organisation of labour and markets. The factory system and manufacturing on mass scale led to changes in modes of production and acquisition of raw materials from around the world. The growth of industries, urban space, slums and modern form of government was a social consequence of these developments. As a result, the industrial revolution caused significant changed in society, and thus the need to understand it also grew and led to the emergence of sociology.

The scientific analysis of developments and study of social behaviour in industrialised societies were the main subjects of sociology. This was made possible by empirical observation and study of the information about social indicators generated by the state.

Q3.What are the various components of a mode of production?

ANSWER:

Karl Marx’s philosophy of capitalism was based on the notion of modes of production which was associated with the historical period. The various modes of production at a general level are:

(i) Primitive communism

(ii) Slavery

(iii) Feudalism

(iv) Capitalism

At a specific level, the base of production is economic and includes productive forces and production relations. The productive forces include land, labour, technology and sources of energy. Production relations refer to economic relationships and forms of labour organisation that are involved in production. Property relations are based on the ownership of means of production.

Q4.Why do classes come into conflict, according to Marx?

ANSWER:

According to Karl Marx, the groups with similar interests and common objectives form same classes. This formation of classes is based on a historical process, which means that in every society class, identity among the people was present. With the change in modes of production, technology and social relations, these classes became antagonist to each other, thus resulting in class conflict. For instance, in a capitalist society, there is a conflict between the capitalists and the working class. In such a society, both of them are in a direct opposition to each other and hence the class conflict arises between classes.

Q5.What are social facts? How do we recognise them?

ANSWER:

According to Emile Durkheim, sociology is the study of social facts. Social facts are things that are external to an individual and constrain their behaviour. They are general in nature, which means that they are collective representations of social behaviour of a group of people. Social institutions like law, education and religion also constitute social facts along with beliefs, feelings and collective practices. In order to prove that sociology is based on social facts, Durkheim carried out the study of ‘suicide’. According to it, suicide is a personal choice that an individual commits, but the average rate of suicide in society reflects social behaviour and is a social fact. Hence social facts can be recognised through social behaviour, and the aggregate patterns of social behaviour.

Q6.What is the difference between `mechanical’ and `organic’ solidarity?

ANSWER:

	Mechanical Solidarity		Organic Solidarity
1.	It is found in primitive societies.	i.	It is found in modern societies.
2.	It is based on the similarity of its individual members.	ii.	It is based on the heterogeneity of its members.
3.	It is found in societies with less population.	iii.	It is found in the societies with large population and impersonal relationships.
4.	It is a group of people who are self sufficient and engaged in similar activities.	iv.	The people in this group are not self sufficient but dependent on other groups for their survival.
5.	This kind of society is not very tolerant of differences and violation of norms.	v.	This kind of society is tolerant and interdependent on each other.
6.	It has repressive laws that prevent deviation or opposition from the norms of community.	vi.	It has a restitutive law that corrects the wrong done by the criminals.
7.	The individual in this kind of society is totally submerged in the collectivity.	vii.	In this society the individual is given some autonomy.

Question 7:

Q7.Show, with examples, how moral codes are indicators of social solidarity.

ANSWER:

According to Durkheim, moral codes are indicators of social solidarity because society existed as a moral community above the individuals. Moral codes were codes of conduct that were collectively agreed upon. They reflected the prevailing social conditions and were manifested in the practices in everyday life. The ties that the individuals were bounded with, were important for the society, and these exerted a pressure on people to confirm that the norms and values of the society are not violated by any means. Therefore, the individual’s behaviour was limited and predictable which made it easy to understand the social solidarity which governed them. For example, caste system in India is a moral code that is reflective of social solidarity among various groups belonging to same caste.

Q8.What are the basic features of bureaucracy?

ANSWER:

The basic features of bureaucracy are:

(i) Functioning of Officials – It means that the officials have fixed areas of jurisdiction and are governed by rules and laws. The responsibilities of the officials are defined by the authority available to them and they have to function under the command of higher authorities. The officials are appointed on the basis of their qualifications.

(ii) Hierarchical Ordering of Positions – The authority of the officers is placed in a top down hierarchy.

(iii) Reliance on Written Document – The management of the organisation is carried out on the basis of written documents. Records are preserved for reference and decision making is cumulative.

(iv) Office Management – Office management is a specialised activity which requires trained and skilled officers.

(v) Conduct in Office – The conduct of the officers is maintained by strict rules and regulations. The public behaviour is separated from behaviour in private domain. Officials are also held accountable for their conduct.

Q9.What is special or different about the kind of objectivity needed in social science?

ANSWER:

The special or different kind of objectivity needed in social science is ‘value neutrality’. According Max Weber, it was important for sociologists to understand the subject matter of sociology in an objective manner as social interactions incorporated subjective human meanings, values, feelings, prejudices and ideals. For this, a sociologist had to study and record the views of people and their personal beliefs in a neutral way through empathetic understanding. That is, s/he had to describe and could not judge or imply her/his own conceptions to the understanding of others. Social scientists were themselves a part of society. Therefore, the exercise of such objectivity is deemed to be unique.

Q10.Can you identify any ideas or theories which have led to the formation of social movements in India in recent times?

ANSWER:

Many social theories have been at the root of social movements in India after independence. These include theories related to socialism, feminism and environmentalism. Socialist movements have strived to secure economic justice for backward classes. The ideal of socialism has been recognised in the preamble of the Constitution of India as well. Dalits and tribals have participated in socio-political movements to acquire political power based on the ideas of social reforms movements of nineteenth and twentieth century. These groups had been exploited from ancient time and are now endeavouring to claim their place in society. Feminism seeks to redefine the role of women in society and bring it on equal footing with that of men. Feminist movements have struggled against stereotypes and made efforts to secure the rights of women at home and workplace with some degree of success. Environmental movements have combined environmental and social concerns of people which have been overshadowed by developmental concerns. The Gandhian ideals of peaceful agitation and simplistic living have their association with most of these movements. Environmentalism has recently acquired a prominent focus among social concerns with problems like climate change and its attendant costs, particularly for developing countries. Major socio-environmental movements in India are the Chipko movement, the Appiko movement, Narmada Bachao Andolan and Silent Valley conservation.

Q11.Try to find out what Marx and Weber wrote about India.

ANSWER:

(i) Karl Marx – He referred to the villages of India as “little communities”. He was of the opinion that India was a self sufficient group which had no contact with the outside world. India had its own institutions and beliefs that controlled the human behaviour. Marx also opposed the British rule in Indian society and was totally against it. He wrote many articles on India under the British Raj, in order to throw light upon his views.

(ii)Max Weber – He studied India under his works on the ‘Sociology of Religion’. Weber understood the Indian society as orthodox and suppressed, under the barriers of the caste system. He emphasised throughout his studies the need of rational thinking, which was opposed by the caste system in India. He also believed that the religion and caste system together acted against economic development.

Q12.Can you think of reasons why we should study the work of thinkers who died long ago? What could be some reasons to not study them?

ANSWER:

The work of thinkers who died long ago needs to be studied because it is important to understand the impact of their ideologies in order to know the present-day societies well. For example, to understand the communist model and its failures, one needs to study the theories developed by Karl Marx on capitalism and communism.

Some theories of scholars are still relevant in the present day societies. The idea of bureaucracy by Max Weber is a very important element of functioning of present day societies in which we are living.

Their theories also provide many answers to social developments of the past. For example, the progress of western societies compared to Asian societies can be understood through the study of Protestant-Ethic and the Rise of Capitalism by Max Weber.

The difference between sociology and psychology can be understood by the study of ‘Suicide’ done by Emile Durkheim.

Reasons for not studying the works of early thinkers are that some of the old concepts may not be applicable to the present day societies. This can be attributed to unforeseen changes in social, economic, cultural and technological fields which accompany the advent of a new era. For instance, the theory of Karl Marx where he concludes that the working class would protest against the capitalist and a new form of socialist regime would emerge, was eventually proved wrong and later the theory of Max Weber was accepted. Also, there are many critics to the theory. For instance the ideology of the Indian villages being self sufficient entity by the western scholars, was highly criticised by the Indian scholars like M.N. Srinivas, according to whom, the villages were connected with the outside world.

Long Answer Type Questions:

Q1.Write a short note on Emile Durkheim.
Answer:
Emile Durkheim was bom on 15th April, 1858 in France. His elementary education was completed at Ecole. After graduation from the Ecole, he started working for the
doctoral degree. He obtained his doctorate in 1893, and was appointed Professor in the Paris University. Durkheim founded L ‘Anne Sociologique, the first social science journal in France. He died on Nov. 15,1917. His works include :

• Division of Labour in Society
• The Rules of Sociological Method
• Suicide
• The Elementary Forms of Religious Life.

According to Durkheim, social facts are the substance of sociological study. Durkheim was strongly concerned with outlining the nature and scope of sociology.

• They are general throughout society.
• They are external to individuals and exist independently on their will.
• They exercise external constraint over individuals.

Q2.Explain “theory of suicide” as stated by Emile Durkheim.
Answer:
Emile Durkheim identified four types of suicide:

1. Egoistic Suicide: A person gives too much importance to his own self or ego; is not properly integrated in society; excessive self- reflection on personal matters leading to withdrawal from the outside world; as a result there is weakening in the bonds of solidarity in the family, religious and political organizations

2. Altruistic Suicide: In this the person is over-integrated with the society. They commit suicide for the cause of society or a kind of self-denial, e.g. Sati, Jauhar.

3. Anomic Suicide: In societies that experience sudden changes. Anomic is a state which results from the weakening of the powers in the society that regulate social equilibrium. The person meets frustration and he cannot withstand it, he puts an end to his life.

4. Fatalistic Suicide: When there is excessive degree of regulation and an overly developed regime, e.g. seeing no alternative to enslavement under the master a slave takes his life.

Q3.Highlight the basic characteristics of religion.
Answer:
The basic characteristics of religion are:

• Belief in supernatural power.
• Emotional state of mind associated with the beliefs, happiness, fear, reverence etc.
• Material objects involved in the religious practices-altar, cross, sacrifice, flower, . incense sticks, special clothes, banana leaves etc.
• Variations in the types of material objects used in religious ceremonies-differ from culture to culture.
• Specific rituals – fasting, chanting, dancing, specific types of food etc.
• Specific mode of worship.
• Concept of heaven and hell; sacred and profane etc.
• A special place of worship.
• Generally rituals are performed in isolation but occasionally it is performed collectively.

Q4.How did Max Weber explain “social action”? Elaborate on the types of social action seen in society. (HOTS)
Answer:
According to Max Weber

• An action is social when it is oriented or directed to others in society.
• It is social in so far as by virtue of the meaning attached to it by the acting individual or individuals.
• All human behaviour to which the actor attaches a subjective meaning is social action.

Types of social action

• Goal-Rational Action: Both means and goals are rationally selected by the individual.
• Value-Rational Action: These are performed under the influence of ethical values and religious beliefs of the individual.
• Emotional Action: The means and ends of the action are selected on the basis of emotional criteria. They may not be rational.
• Traditional Action: Tradition and customs guide the selection of the means and ends.

SHORT ANSWER TYPE QUESTION:

Q1.Describe in your own words what you understand by the term `ecology’.

Answer:

Ecology refers to the complex network of biological and physical systems and processes between the biotic and abiotic components of environment. It is responsible for the type of environment around living beings. Humans are also a constituent of ecology. Various physical features like mountains, rivers, plains and oceans, each with their unique flora and fauna, form their own ecology. The ecology of a place is affected by the interaction between its geography and hydrology. The flora and fauna of a particular region adapt themselves according to its ecology, in order to survive. Ecology of a place has an impact on the human living conditions and the lifestyle, food, clothing, occupation and culture of the people of that place.

Q2.Why is ecology not limited only to the forces of nature?

Answer:

Ecology is not limited to the forces of nature as it gradually gets modified by human actions. Many seemingly natural features and phenomena associated with the environment are the caused by human activities. For example, the change in climate because of global warming seems to be a natural process, but is an outcome of the human activities. The conservation of soil and water, usage of pesticide, and other man-made materials in agriculture are other examples of human transformation of nature. Artificial environment is prominently visible in cities in the form of built environment made from concrete, cement, brick, stone, glass and tar.

Q3.Describe the two-way process by which social environments emerge.

Answer:

Social environments emerge as a result of a two-way process in the form of interaction between biophysical ecology and human interventions. This can be explained as the shaping of human society by nature and the shaping of nature by human society. For example, the soil fertility of Indo-Gangetic plain enables agriculture and sustains high density of population while the arid and dry condition in Rajasthan barely supports pastoral form of life. This represents the impact of nature on human life. Contrary to this, technological developments like invention of automobiles have had an impact on the landscape. Air pollution and global warming are examples of the impact of human activities on nature.

Q4.Why and how does social organisation shape the relationship between the environment and society?

Answer:

Social organisation shapes the relationship between the environment and the society because the relations of property determine the usage of natural resources. For example, there would be a difference in the ownership of forests by the government and the private companies. This is because both of them would have different purposes and aim out of these resources. Hence the use of forests by both of them would be different.

The ownership of natural resources also vary with the division of labour. For instance, the relationship of landless labours and women with resources would be different than that of men because women experience scarcity of resources more acutely in a rural area, as they have to go to fetch water and collect firewood without controlling these resources.

Q5.Why is environmental management a complex and huge task for society?

Answer:

Environmental management is a complex and huge task for society because sufficient information is not available about the biophysical processes to predict and control them. The relation between humans and environment has become complex as industrialisation has accelerated the extraction of resources. This has affected ecosystems in ways which were not possible earlier. The industrial management systems are fragile and often vulnerable. This has also given rise to many environmental problems and risks. Disasters like the Bhopal Gas Tragedy are consequence of such hazards.

Q6.What are some of the important forms of pollution-related environmental hazards?

Answer:

Some of the important forms of pollution-related environmental hazards are as follows:

(i) Air Pollution – It is caused by emissions from industries and vehicles in urban areas and burning of wood and coal for domestic use in rural areas. It is one of the major environmental problems in both – urban and rural areas. Air pollution causes many diseases, such as respiratory disease that may result in serious illness and death.

(ii) Water Pollution – It is another form of pollution that affects the quality of water on surface and groundwater. It is mainly caused by domestic sewage, factory effluents and water from farms, which have large amounts of pesticides and synthetic fertilisers. Rivers and other bodies are particularly affected by water pollution.

(iii) Noise Pollution – Noise pollution mainly occurs in the cities as a result of continuous honking by vehicles, use of amplified loud speakers, traffic and construction work, etc. Noise pollution has been a subject in many court orders, for its control.

Q7.What are the major environmental issues associated with resource depletion?

Answer:

The depletion of resources is associated with the using up of non-renewable natural resources. The major environmental issues as associated with resource depletion are as follows:

(i) The depletion of land and water resources. The decline in groundwater levels has caused an acute shortage of water all over India, particularly in states of Haryana, Punjab and Uttar Pradesh. With the growing demands of agriculture, industries and urban sector, the water shortage is one of the major problems faced by the world today. The fertile soil of the land also gets destroyed due to erosion, water-logging and salinization and activities like production of bricks.

(ii) Depletion of biodiversity habitats like forests, grasslands and wetlands is another major environmental concern. This has been caused by expansion of areas under agriculture. Many species of flora and fauna have been endangered by the loss of biodiversity. This includes the tiger population, which is now threatened by declining numbers.

Q8.Explain why environmental problems are simultaneously social problems.

Answer:

Environmental problems are simultaneously social problems, as the way they affect different social groups is associated with ‘social inequality’. This is because social status determines the extent to which a person is able to cope up with environment related problems. For example, in places like Gujarat where water is scarce, the rich farmers invest in deep bore tube wells to get underground water, whereas the poor farmers cannot afford to get tube wells. The depletion of water is compounded when the rains fail, as the wells of poorer farmers become dry.

However, some environmental problems, like air pollution and loss of biodiversity, are universal concerns. Differences in perception exist over the constitution of public interest in terms of environment. These differences often result in decisions which hurt the interest of weaker groups and minorities. For example, debates over construction of large dams and the displacement of people.

Q9.What is meant by social ecology?

Answer:

Social ecology emphasises the role of social relations in environmental practices and perceptions. It is particularly related to the organisation of property and production. Various social groups share a different relation with the environment and have a different approach to it. The varied interests and ideologies generate environmental conflicts. Thus, social ecology indicates the solution of environmental problems by changing relations between environment and society. To achieve this result, it advocates changing the relation between different social groups like men and women, urban and rural people, landlords and labourers. Change in social systems enables the development of new methods of managing the environment.

Q10.Describe some environment related conflicts that you know of or have read about. (Other than the examples in the text.)

Answer:

Note: Any answer supported with explanation would solve the purpose.

One sample answer has been provided to you:

Some of the environment related conflicts are:

(i) The Chipko Movement or the Chipko Andolan.- It was a socio-ecological movement which started in the Garhwal region of Uttarakhand. It was started by women, who hugged the trees to protect them when the lumbermen came to cut them. Later, this movement spread all over India and came to be known as the Chipko Movement.

(ii) Narmada Bachao Andolan- This was a movement for the rights of people who were displaced by the construction of Sardar Sarovar Dam on the river Narmada. Medha Patkar and Baba Amte were the leading figures associated with this movement. The Supreme Court initially stopped the ongoing work at the dam site and later ordered the monitoring of the dam project along with its environmental aspects.

Long Answer Type Questions:

Q1.Elaborate three aspects of human ecology seen in human society.
Answer:
Three aspects of human society are as follows:

• Population: Human beings are dependent on the geographic environment for air, water and food. These things are important for the survival of human beings. Therefore, many ways are evolved for the development of the relationship between needs and environment.
• Environment: The geographic environment is explored for the requirements of air, water and food. There is a distinct set of relationships that exist with the physical environment.
• Technology: The improvement in technology makes the relationship strong. The changes in technology also bring about changes in social life. Technology is the means by which adaptation to the environment takes place.

Q2.Why are environmental problems treated as social problems?
Answer:

• Social ecology emphasises that social relations shape environmental perceptions and practices e.g. the artisans may be interested in bamboo forest for making baskets but forest department may be interested in supplying large amount of bamboo to the paper industry.
• Environmental crisis arises from social issues. On the one hand, in metropolitan cities we enjoy water parks, Ice skating, malls etc. On the other side in rural areas, there is acute shortage of water and electricity.
• In cities people maintain their houses, gardens and wash cars using excess of water whereas in slums people are deprived of water.
• Economic, social and health hazards may occur due to environmental disasters like Kedamath, Tsunami and Jammu and Kashmir floods. Such disaster leads to extreme poverty.

Q3.What is Sustainable Development?
Answer:

• Sustainable Development means development that meets the needs of the present without comprising the ability of future generations to meet their own needs.
• Economic growth and modernisation as a means not only satisfy basic material needs, but also provide resources essential to improve quality of life, e.g., access to healthcare and education.
• However most forms of economic growth cause harm to natural resources and generate waste or pollution which jeopardizes growth for future generations.
• The philosophy of sustainable development attempts to resolve this dilemma by insisting that decisions taken at every level throughout society should have due regard to their possible environmental consequences.
• In this way the right kind of economic growth based on biodiversity, the control of environmentally damaging activity, and replenishment or to fill up the renewable resources such as forests is generated and this can protect or even enhance the natural environment.
• It is often difficult for governments (particularly those who are accountable to electorates over short term period such as five years or so) to accept the political consequences of promoting sustainable development, e.g., by imposing tolls or fines for the use of cars in cities.

VERY SHORT ANSWER TYPE QUESTION:

Q1.Define social change.
Answer:
Social change refers to any change in the system in which social-relationships remain organised, controlled and stable.

Q2.Define authority.
Answer:
Authority refers to a person who has inherent power to give reward and punishment. According to Max Weber, authority refers to legitimate power.

Q3.Define law.
Answer:
“Law is the body of rules which are recognised, interpreted and applied to particular situations by the courts of the state.”
Law is collection of customary standardised and formalised norms that regulate human conduct. They have the support of customs and law making bodies.

.
Q4.What is traditional authority?
Answer:
Traditional authority emphasises on social values, beliefs and continuity. Family based on kinship are its example.
It maintains the social order and brings desired changes according to social demands.

Q5.What is socialisation?
Answer:
Socialisation is a process of social learning through which a child acquires the norms, attitudes, beliefs and behaviours that are acceptable in his/her culture. The principal agents of socialisation are the family, school, peer group and media.

Q6.What is conformity?
Answer:
Conformity is a type of social influence in which individuals change their attitude or behaviour in order to adhere to existing social norms.

Q7.What do you understand by Ghettoisation?
Answer:
Ghettoisation is the process of creation of ghettoes through the conversion of mixed composition neighbourhoods into single community neighbourhoods.

Q8.What is the meaning of social influence?
Answer:
It refers to the efforts by one or more individuals to change the attitudes, beliefs, perception or behaviour of the people.

Q9.Define social norms.
Answer:
It refers to rules indicating how individuals are expected to behave in specific situations.

Q10.What is contestation?
Answer:
It refers to broad forms of insistent disagreement. It is a situation in which people tend to protest against or refuse to conform to existing social norms.

Q11.What is charismatic authority?
Answer:
A particular political or religious leader with whom people get attached due to his exceptional and supernatural qualities is called charismatic authority. Such people have great power to influence people.

Q12.How technology can bring social change?
Answer:
Technology refers to the use of sophisticated methods to fulfil material needs which is capable of bringing vast changes in the society.
It changes the simple society into complex one. Social changes due to technology is being labelled as technological revolution.

Q13.How was the word ‘culture’ derived?
Answer:
The word ‘culture’ comes from the Latin word “colere” which means to cultivate. It was used to refer to progressive refinement.
Q14.What is city?
Answer

A city is the core of metropolitan area. It has a large population, high density of population, heterogeneity, predominantly engaged in non-agricultural occupations.

Q15.What is a suburb?
Answer:
A suburb is a community situated just on the outskirt of a city having low population density and smaller population. It is located in the metropolitan area.

SHORT ANSWER TYPE QUESTION:

Q1.Would you agree with the statement that rapid social change is a comparatively new phenomenon in human history? Give reasons for your answer.

Answer:

Yes, rapid social change is a comparatively new phenomenon in human history. It has been estimated that the human beings have been in existence for 500,000 years, but civilization started only around 6,000 years ago. The most rapid changes started 400 years ago and the pace of changes increased in the last100 years. This acceleration in changes was mainly due to advancements in technology and the advent of industrial revolution. Therefore, the speed of these changes that are occurring, is increasing day by day, every decade. The human beings are progressing towards development and new scientific milestones everyday.

Q2.How is social change to be distinguished from other kinds of change?

Answer:

Social change, unlike other forms of change, refers to significant changes that take place in the foundations of social structure and systems of a society. Other forms of change may impact certain aspects of social life without encompassing it as a whole. Such restrictions are not applied to social changes.

It does not include the small changes but only the big changes that alter the society fundamentally. The influence of such changes has to be both intensive and extensive.

Therefore, the changes that impact a large section of the society are called social changes. For example, a change in the government may not necessarily qualify as a social change. However a change in the social ideals from capitalism to socialism or abolition of practices like untouchability, that impact a large number of people, does represent social change.

Q3.What do you understand by `structural change’? Explain with examples other than those in the text.

Answer:

Structural change refers to the transformation in the structure of a society. This type of change includes changes in the structure of social institutions or the rules by which they are run. Structural changes are thus long term and permanent changes. For example, globalization is a structural change. It took place in order to integrate the economies of the world through a global network.

Q4.Describe some kinds of environment-related social change.

Answer:

The nature of a society is altered by its ecology and environment. Modern technology has significantly altered the impact of environment on society. However, catastrophic events that take place can change the structure of a society completely. For instance, the tsunami that occurred in the Indian Ocean changed the lives of people drastically. These changes are irreversible and permanent in nature. There was a great loss of lives, loss of livelihood and in many cases, large scale migration of people to new areas in search of new opportunities. Thus, the tsunami became an agent of social change. Similar phenomena are associated with floods, draughts and earthquakes.

Q5.What are some kinds of changes brought about by technology and the economy?

Answer:

Technology and economy have immensely changed the structure of the society. Technology, through its association with the economy, has caused major social changes. Various examples of these changes are as follows:

(i) The Industrial Revolution, which brought about many industries and the development of capitalist system of production in society.

(ii) The invention of steam engine and development of various modes of transport like rail and aeroplane transformed the entire economy and social geography of the world.

(iii) Steam ships made gigantic changes not only in the economy, but also in the social, cultural and demographic directions, by enabling large scale trade.

(iv) Development of textile industry in Britain had a negative impact upon the handloom industry in India which was very distant from Britain. This type of integration of economies was enabled only by the advent of technology.

(v) Changes in economic institutions caused a skewed demand for labour and adoption of new social practices. For example, development of plantation agriculture of cash crops established slavery and slave trade between Europe, America and Africa.

(vi) The ongoing process of globalisation, while being beneficial for multinational corporations, has had a negative impact on indigenous industries.

Q6.What is meant by social order and how is it maintained?

Answer:

Social order is the tendency of social institutions to resist and regulate change. It is useful as it provides a backdrop and relativity to compare social change.

Every society strives for social order in order to maintain stability and provide a strong and viable social system. This inevitably leads to the process of stratification of society as social rules need a visible authority for them to be followed. Thus, social order is maintained by the people who are in power because they do not want to lose control over the societal norms and access to resources. Therefore, the dominant groups in societies resist social change because it may reduce their status. As power generally lies with such groups, they are successful in their endeavour and societies acquire stability.

Q7.What is authority and how is it related to domination and the law?

Answer:

Authority, according to Max Weber, is the power which is legitimate, justified and proper. It is generally derived from the official position of a person and the powers are specified on written documents. Other members of a society implicitly agree to follow the authority. For example, the authority of police or a judge.

A law is an explicitly codified norm or rule and usually exists in a written form. Authority is related to law and domination as the difference between the strict authority, which is explicitly codified, and the informal authority, lies in the notion of law.

In a modern democratic state, the laws are created by legislature. They act as a binding force on citizens and, hence, dominate them. This domination works through legitimate power or authority, a large part of which is codified in the law. It requires consent and cooperation on a regular basis to maintain legitimacy.

Q8.How are a village, town and city distinguished from each other?

Answer:

In sociological terms, a village and a city are distinguished by their social organisation, administrative factors like population density and the proportion of agriculture and its allied economic activities.

Villages emerged as part of the major changes in social structure which was brought by the transition from nomadic life to a more settled form of life. They are traditionally dependent upon agriculture and other primary activities for income. They also have lower density of population. In comparison, towns and cities have higher population density and are more dependent upon industries for income.

The difference between a city and a town is based upon their size. A city is similar to a town, except that it is much larger in size and area.

Q9.What are some features of social order in rural areas?

Answer:

Every rural area has a different condition. Thus, the social order also varies from village to village. The features of social order in rural areas are as follows:

(i) The small size of a village is suitable for more personalised relationships.

(ii) The social structure of a village follows traditional lifestyle. Institutions such as caste and religion are stronger here.

(iii) The social institutions do not welcome change easily, as compared to towns and cities.

(iv) A village also has a strong power structure as the people in power control all the resources and resist change.

(v) It is not easy for subordinate groups to challenge the dominant groups. The poor are dependent upon dominant sections for support and employment.

(vi) The villages are not very well connected to the towns and cities and thus not conducive to change.

(vii) New modes of communication, land reforms and technology have reduced this gap and accelerated the pace of change.

Q10What are some of the challenges to social order in urban areas?

Answer:

Most of the challenges to social order in the urban areas are related to the ‘space’. This is because of the high population density which leads to the problem of logistics. The following are some of these challenges:

(i) The management of space is related to development of housing, transportation, land use and public facilities like sanitation, policing and urban governance.

(ii) Inadequate facilities for housing results in homelessness and development of slums that are congested and overcrowded neighbourhoods, with improper facilities.

(iii) Law and order issues due to criminal activities in slums. The major cause is the undefined rights over property of slum owners.

(iv) The residential colonies in urban areas are mixed with people of all class, caste, religion and ethnicity, which also give rise to communal problems, such as riots, and the phenomenon of ghettoisation.

(v) The gated or affluent communities are separated from their surroundings by walls, gates and run their own parallel facilities for water and electricity supply, policing and security.

(vi) Large distances between residential, industrial and commercial areas place a burden on transport. People rely on private transport, which results in congestion and pollution.

Long Answer Type Questions:

Q1.How demographic factors, education and social legislation cause social change?
Answer:

• Population growth, its size and composition cause social change.
• When population starts multiplying, unemployment, housing, cleanliness and hygiene, poor economic condition, severe stress due to competition.
• Education is one of the core factors which has far reaching consequences on the evolution, revolution and progress of individual and society by and large.
• Modem educational system aims at imparting empirical knowledge.
• Education enables the members to participate effectively in social domains.
• Education can bring radical changes in the status of women.
• Modem education has brought significant changes in customs, traditions, superstitions and beliefs of people in the society.
• Social legislation has brought significant changes in society if it is supported by
  social opinion.
• After independence in India many legislations have been passed out. Of so many, a few could bring about significant changes e.g. legislation related to SCs and STs. But there are many which are unplemented. It could not bring about significant changes particularly in the rural society like ‘Sharda Act’ related to child marriage

VERY SHORT QUESTION AND ANSWER:

Q1.What do you mean by social structure?
Answer:

• Structure refers to some sort of ordered arrangement of parts or components.
• The term ‘social structure’ refers to any recurring pattern of social behaviour or the ordered relationship between the different elements of a social system.
• Main elements of social structure are status, role, norms and values.

Q2.What do you understand by social processes?
Answer:
The repetitive forms of social interaction are called social processes.
It is the continuous change in a situation which happens in a particular way because of the activities of its inherent forces.

Q3.What do you understand by social stratification? Why is it essential?
Answer:
The term ‘stratification’ refers to studies of structured social inequality between groups of people, which arise as the unintended consequence of social processes and relationships.

Q4.Explain the concept of caste stratification.
Answer:
Caste is an institution of considerable internal complexity. Caste stratification is a type of rigid hierarchical social division of society in permanent groups or categories.
This division is based on the relationships of superiority and subordination.

Q5.Explain the concept of class stratification.
Answer:
A social class is any position of the community marked off from the rest of social status. These classes are arranged on the basis of economic conditions but social classes are more than economic groups. They show a common pattern of behaviour and develop in group bias. It may be defined as broad category of people who share similar economic conditions.

Q6.Explain the concept of gender stratification.
Answer:
Gender stratification refers to socially unequal division into femininity and masculinity. It is not only related to the difference between males and females and to individual identity and personality but also at symbolic level, to cultural ideals and stereotypes of masculinity and femininity at the structural level, to the sexual division of labour in institutions and organisations.

Q7.What do you mean by Ethnicity?
Answer:
The term ‘Ethnicity’ refers to the individuals who consider themselves to share common characteristics that differentiate them from the other collectivities in a society and from which they develop their distinctive cultural behaviour, form an ethnic group.
One race hates the other race due to the sense of superiority. It is not inborn.

Q8.What is Accommodation?
Answer:
Accommodation is a form of social process in which two or more persons or groups interact in order to prevent, reduce or eliminate conflict.
It is a process whereby the subordinate groups simply conform to the expectations of the dominant group.

Q9.What is Assimilation?
Answer:
Assimilation implies that the subordinate groups actually come to accept and internalise the values and culture of the dominant group.
It is a social process through which, persons or groups accept the behaviour of others.

SHORT ANSWER TYPE QUESTION:

Q1.Explain the concept of status.
Answer:
The term ‘status’ has two meanings in sociology:

1. It refers to the position a person occupies in the social structure, such as a teacher or doctor. This status (position) may be ascribed or achieved.
2. Status refers to a form of social stratification in which social positions are ranked and organised by legal, political and cultural criteria into status groups.

Q2.What are Norms? Explain its importance.
Answer:
Norms are shared expectations of behaviour. It connotes what is considered culturally desirable and appropriate.
Norms are similar to rules or regulations in prescriptive, although they lack the formal status of rules.
The sociological concept of norm is closely related to that of ‘role’, which is commonly defined as a set of norms attached to social position.

Q3.Distinguish between mechanical and organic solidarity.
Answer:

• According to Durkheim, traditional cultures with a low division of labour are characterised by mechanical solidarity.
• Most of the members of the society are involved in similar occupations. They are bound together by common experience and shared beliefs.
• According to Durkheim, societies characterised and held together by people’s economic interdependence and a recognition of the importance of others contributions are called organic solidarity.
• Its division of labour becomes more complex, people become more and more dependent on each other.
• Relationships of economic reciprocity and mutual dependency come to replace shared beliefs in creating social consensus.

Q4.How voluntary cooperation is different from enforced cooperation?
Answer:
Cooperation may be voluntary, may be enforced. It depends on the situation.
In agricultural operations different members of the group perform different activities. They grow different crops. Some focus on fishing or growing vegetables and some perform supportive activities. For example, preparing tools and equipment. They all cooperate each other to get good harvest. This is voluntary cooperation, which is intrinsic in nature.

But the factory workers do cooperate with the owners in performing their tasks because total production depends on their mutual relations but it is actually system requirement. This cooperation is a prerequisite for job sustenance. Behind the cooperation there are many norms. So this is enforced cooperation which is extrinsic. The feeling of fulfilment and creativity of a weaver or potter or ironsmith is voluntary cooperation.
In contrast, a worker involved in a factory whose sole task may be to pull lever or press a button throughout the day. Cooperation in such a situation would be enforced.

Q5.How Durkheim and Marx differ on the issue of cooperation?
Answer:
For Durkheim, solidarity, the moral force of society is fundamental for understanding of cooperation and thereby functioning of society.

The role of division of labour which implies cooperation is precisely to fulfil certain needs of society. It is simply system requirement. For Marx, cooperation is not voluntary in a society where class exists. He argues, “The social power i.e. multiplied productive force (surplus) arises through the cooperation of different individuals as it is caused by the division of labour. Cooperation is not voluntary but naturally. In this enforced cooperation, workers lose control over how to organise their own work and they lose control over the fruits of their labour.”

Q6.What is competition? How is it different from cooperation?
Answer:
Cooperation is a dissociative social process in which it sets up its own values in opposition to the mainstream.
Competition is a social process in which many people struggle to achieve something which has hunted availability.
Competition is for getting scarce resources, may be money, jobs, prestige, position, power or love.
Competition is a universal social process but it varies from culture to culture.
Concept of competition involves attainment of goal without using force or terror. Cooperation represents all relations among persons or groups which work together towards a shared common goal.
Cooperation is an associative social process. It may be conscious or unconscious. It involves an element of sympathy, sacrifice and feeling of togetherness.

Q7.What is Laissezfaire liberalism?
Answer:
A political and economic approach based on the general principle of non-interference in the economy by government and freedom for markets and property owners, is called Laissez faire liberalism.
Laissez faire liberalism is an approach to economics that asserts the importance of the free, competitive market of the individual suppliers and individual purchasers to the efficient production, distribution and allocation of goods and services and emphasises on the need to keep state regulation to a maximum.

Q8.What do you mean by division of labour?
Answer:
The specialisation of work tasks by means of which different occupations are combined within a production system. With the development of industrialisation the division of labour becomes more complex than any prior type of production system. In the modem world, the division of labour is international in scope. On the basis of division of labour, the concept of organic solidarity functions with the form of social cohesion. The interdependence of members of society is the result of such kind of solidarity.

Q9.What is dominant ideology?
Answer:
Dominant ideology refers to shared ideas or beliefs which serve to justify the interests of dominant groups. Such ideologies are found in the societies in which are systematic. The concept of ideology connects closely with that of power, since ideological system serves to legitimise the differential power which groups hold.

Q10 What is alienation in terms of Marx?
Answer:
Marx used the term alienation to refer to the loss of control on the part of workers over the products of their labour.
In general term, it describes the estrangement of individuals from one another or from a specific situation or process.

Q11.Do you think that conflicts are always manifestations through overt clashes? Explain with suitable examples.
Answer:
Conflict is often not overtly expressed. Many a time conflict appears as a discord or overt clash only when it is openly expressed e.g. the existence of a peasant movement is an overt expression of a deep rooted conflict over land resources. But it is not always true. This can be explained through a few examples.

Traditionally the family and household were often seen as harmonious units where cooperation was the dominant process and altruism (doing some thing good for other without having any vested interest) the driving principle of human behaviour. ‘Maternal altruism’ in the northern Indian plain is likely to be biased towards sons and can be seen as women’s response to patriarchal risk.
Mostly we observe that women’s subversion of male decision-making power tends to be covert e.g. doing small business or money landing.

Another example of covert conflict and overt cooperation is related to property rights where a woman demanding her rights is named as greedy. Woman mostly shows cooperation by not demanding her right but inside the conflict occurs and causes bitterness.

Q12.Differentiate between functionalist perspective and conflict perspective in terms of social processes.
Answer:
Karl Marx is usually associated with conflict perspective and Emile Durkheim is usually identified with a functionalist perspective.
Conflict theories emphasised the importance of interests over norms and values and the ways in which the pursuit of interests generated various types of conflicts as normal aspect of social life, rather than abnormal or dysfunctional (interfering) occurences e.g. class conflicts in industrial society.

According to conflict perspective, societies divided by caste or class or patriarchy, some groups are disadvantaged and discriminated against. The dominant groups sustain the unequal order by a series of cultural norms and often force or even violence.
In functional perspective, society is seen as an organic whole, each of its constituent parts working to maintain the others just as the parts of the body coordinate.

This idea is basic to the conception of organic solidarity which emphasises on people’s economic interdependence and recognition of the importance of other’s contributions. Functionalist perspective is mainly concerned with the system requirements of society-certain functional imperatives, functional requisites and prerequisites. These refer to the fulfilment of conditions which are necessary for the existence of a system.

SHORT ANSWER TYPE QUESTION:

Q1.Why is the question of a scientific method particularly important in sociology?

Answer:

The question of scientific method is important because it helps sociologists to acquire knowledge.

Sociologist deals with different societies whose culture may be similar or different. They have to conduct research and field work in which they need to take opinions and feelings of people or respondent in that area. Hence, sociologists try to adopt an objective point of view which is neutral and not based on one’s own perception. Some sociologists like Emile Durkhiem believed that in order to study the society with objectivity, it is important to have a scientific approach. Therefore a need for scientific method was felt. He even carried out a scientific study on the phenomenon of ‘suicide’ by giving various rules in sociological method.

Q2.What are some of the reasons for `objectivity’ being more complicated in social sciences, particularly disciplines like sociology?

Answer:

Objectivity means being unbiased, neutral or based on facts alone.

(i) In case of social science, especially sociology, objectivity becomes more complicated because, like every human, there are some notions perceived by sociologists which make it difficult for him/her to study the culture and norms of a different society in a neutral manner. This can lead to incorrect research.

(ii) The sociologist who is conducting a research can also get biased if the issues are related to his/her society and can imply his/her personal notions to that study. Hence, despite of being reflexive there are chances of unconscious bias.

(iii) There are many versions of truth in the social world. A boy and an old person would have different notions on a particular thing. A shopkeeper and a customer would have different ideas regarding the ‘good price’ of a product. Thus, there is no universal truth in social sciences, making them difficult to arrive at a conclusion.

(iv) Sociology is a ‘multi-paradigmatic’ science. There are different schools of thought that sometimes contradict each other. As a result, ‘objectivity’ becomes complicated in social sciences, especially sociology.

Q3.How do sociologists try to deal with these difficulties and strive for objectivity?

Answer:

To deal with the problem of objectivity sociologists use the technique of ‘self-reflexivity’ or ‘reflexivity’. The sociologist views opinions, norms or behavioural patterns of different societies from all the perspectives. The sociologist continuously subjects her own attitudes and opinions to self-examination. Also, emphasis is laid on proper documentation of the research. This helps others to retrace the steps taken by the sociologist and scrutinise the study that has been conducted. It also helps the sociologist to check and recheck his/her work. The sociologist then tries to judge different conceptions of people.

Thus, the sociologists take objectivity as a goal of a continuous ongoing process rather than an already achieved end result.

Q4.What is meant by `reflexivity’ and why is it important in sociology?

Answer:

‘Self-reflexivity’ or ‘reflexivity’ is a technique to deal with the problem related to objectivity in social science and is closely related to empathy. In this, the social scientist views different opinions of the people in an unbiased or a neutral manner. Attaining objectivity is a difficult and complicated task in social science therefore, reflexivity becomes very important to carry out social research.

There are different schools of thought within the subject of sociology that study issues from different perceptions and ideologies. At these places the sociologist uses reflexivity.

Q5.What are some of the things that ethnographers and sociologists do during participant observation?

Answer:

Participant observation is a method to study societies. Ethnographers and sociologists use this method when they have to conduct field work that may last for months and years. Some of the things that ethnographers and sociologists do during participant observation are:

(i) They either live or spend most of their time with the community people upon which the research is to be carried out.

(ii) The sociologist or the ethnographer almost becomes like a part of the community.

(iii) They participate with the communities in their rituals and customs, and record the observations on a regular basis.

(iv) The sociologists and ethnographers have limited people from the community on whom they depend for the information. These people are called informants or principal informants.

(v) Although the sociologist’s goal is to study a specific area of interest, but the overall goal of the participant observation is to learn about the entire life of community.

Q6.What are the strengths and weaknesses of participant observation as a method?

Answer:

Participant observation is a micro method used in conducting field work. Its strengths and weaknesses are mentioned below:

Strengths

(i)It provides a very rich and detailed picture of the people on whom the research is being conducted.

(ii)The sociologist can talk to the native people of the community directly which helps in the authenticity of the data.

(iii)The sociologist is free to ask endless number of questions to the person. This is not possible in case of questionnaire and survey.

(iv)A daily record is maintained which reduces the chances of incomplete data.

(v) It helps in correcting initial impressions that may often be biased.

(vi) Because of the long hours spend with the field many errors and biases are avoided that are present in other methods.

Weaknesses

(i) The method involves a lot of time and effort.

(ii) It also involves lot of expenses during the work.

(iii) It is not necessary that the report consists of the views of the insider or of the sociologist, as the sociologist may become consciously or unconsciously bias in selecting what to write and what not to.

(iv) There is no other version available to check or confirm the findings except the sociologist him/herself.

(v) The sociologist or anthropologist is only able to study a very small community. Therefore, it cannot be guaranteed that the observation of the study of the village is really common in the larger community.

(vi) The report of the sociologist based on participant observation method is often criticised to be biased by other sociologists because of the one-sided relationship they project. Hence, it is advised that the report should be translated in the local language of the community so that the people of the community can read and make sure that the report contains proper information.

Q7.What are the basic elements of the survey method? What is chief advantage of this method?

Answer:

The basic elements of the survey method are:

(i) Survey is the best method applied in studying a large area.

(ii) It is mostly based on random sampling.

(iii) These samplings are done in such a way that the samples represent every strata and characteristics of the community.

(iv) Random sampling is preferred to avoid biasness.

(v) Interviews and questionnaire techniques are used in sampling method.

(vi) The questionnaire can be filled by the respondent at his place and sent through post or the sociologist himself may go to the respondent and complete the questionnaire.

(vii) The questionnaire can be filled and sent through email.

(viii) The interview can be conducted online or on telephone.

Its main advantages are:

(i) Survey method is the best known sociological method. In situations where census is not possible survey method is used.

(ii) It gives an accurate picture of the community through sampling.

(iii) In comparison to census or participant observation, less time and money is spend.

(iv) It provides a real picture that is made on the basis of collective representativeness than on single individuals.

(v) Many problems are visible at this level, which cannot be identified at the micro level research.

Q8.Describe some of the criteria involved in selecting a representative sample.

Answer:

Some of the criteria involved in selecting a representative sampling are:

(i) The representative sampling is done in such a way that it represents and recognises all the relevant groups of the particular community.

For example if the lifestyle of working women in India has to be studied then five samples would be collected, each from the organized sector and unorganized sector. Then the combined study is conducted on the basis of these samples.

(ii) These samples are randomly selected, that is, they are to be selected on the basis of chance. This process is known as randomisation and depends on probability. The randomisation is done through lottery method, rolling of dice, use of random number tables prepared for this purpose and random number generated by calculators and computers.

Q9.State some of the weaknesses of the survey method.

Answer:

The weaknesses of survey method are as follows:

(i) It is not possible to get detailed information in a survey method.

(ii) There are a number of respondents and the time spent on each respondent is limited.

(iii) The detailed answers that require detailed prompting cannot be asked again once the questionnaire is filled and sent.

(iv) These differences in the way the questions are asked and answered could introduce errors into the survey.

(v) Questions of a personal and sensitive type cannot be asked. If it is asked then the answer would definitely be given in a safe manner by the respondents. This will make error in the survey.

Q10.Describe main features of the interview as a research method.

Answer:

The main features of interview are:

(i)It is conducted in the form of conversation which is shaped by certain guidelines and questions between the researcher and the respondent.

(ii)It is used in surveys and participant observation method.

(iii)The interview is flexible in its structure.

(iv)This flexibility can lead to a change in the mood of the respondent or lack of concentration, which is one of its disadvantages.

(v)Some interviewers have very structured format with specific questions whereas some have loosely structured format with only a check-list of topics rather than the actual questions.

(vi)During interview the interviewer can ask cross questions or other questions that are required during the process which are not possible in a questionnaire.

(vii)Use of recorders and other equipments are also taken during the interview. Their use makes the respondent uncomfortable that introduces a degree of formality into the conversation, which is another disadvantage.

(viii)The mode of recording depends on the social and physical circumstances in which the interview is conducted.

(ix)The authenticity of this method also depends on the memory of the interviewer after it is conducted.

(x)Sometimes important information goes unnoticed or it is not at all recorded.

(xi)On a whole, a good interview is often based on the rapport build by the researcher with the interviewer.

Long Answer Type Questions :

Q1.Discuss the research process in sociology.
Answer:
Steps in Research
1. Selection of a specific problem (relevant, current): The problem should have sociological significance. Define and formulate the problem. Reviving literature/ secondary research-use different sources e.g. Internet, magazine together information about the problem (reliable sources). Find out information about a specific aspect of the problem. This helps to formulate a conceptual framework. Now the path for the research is paved. Formulating a hypothesis. Assumption/tentative, conclusion/opinion of the researcher on certain aspects of the problem – may/may not be true.

2. Measurement – [Quantitative and Qualitative]:
By assigning values to variables that can be measured by features, attributes etc. It means research from abstract to concrete and further to a conclusion. It involves validity and reliability-reliable sources and measuring.
What do you want to measure objectively? When the researcher gets the same result, if he conducts a research in the same way as another researcher in the same circumstances by using quantitative methods like statistics and analysis of data.

3. Choosing a research design/technique: Survey is the best research technique. It is a method used to gather information about a particular issue/problem and also finding out the views of people and/or interests of people. It is the most common/ effective method of research. It is usually quantitative.

• Sample survey: A small audience represents the population. These are selected from an area and they represent the whole area.
• Random survey: It is done asking people randomly (people selected at random) and they represent the population.

In a survey, there are three most common ways:

• Question uestionnaire
• Interview
• Case study

4. Collection of Data: After the questionnaire is formed, it is distributed and data is collected from respondents.
Depending upon the problem, the respondents are selected.

•  Keep in mind the age/gender/class and the kind of questions when distributing the questionnaire.

5. Analysis and interpretation of Data:
After the data is collected the whole information is analysed and interpreted. Analysis is always in percentages specially for close ended questions (choices).
eg. Yes – 75%  No – 15 %

6. Evaluation: Conclusion of the whole analysis and the interpretation of the data.
Summary of all the questionnaires/hypothesis Includes

1. Summary
2. Whether your hypothesis has been proved or not.
3. Problems the researcher faces while doing the research such as :
   • Dishonesty
   • No interest
   • Incomplete
   • Stupid answers
   • No time
   • Shyness
   • If someone was offended by a certain question etc.
   • More serious problems.

Besides survey, other methods of collecting data can be used:

• Ethnography-Field work, stay with population for months and find out the stuff.
• Archives-historical facts.
• Do commentary (make a movie about it).

Q2.What is questionnaire? Discuss advantages and disadvantages.
Answer:
Questionnaire:
Set of questions prepared by the investigator and given to the respondent with option like yes, no, mock.
A method of collecting data systematically by asking questions which are answered by the respondent.

Types of Question:

1. Close Ended: Fixed choices are given and you have to tick one. MCQuestion s, Yes/No/ May be. An analysis is easier.
2. Easier to understand as it is based on facts. Easier for respondent to answer.
3. Objective.
4. Open Ended.
5. Opinion of respondent is asked. Subjective analysis is difficult as you will get different answers for the same question. It gives more detailed information.
6. A questionnaire should be a combination of these with more close ended questions to make analysis easier. This will give us percentage of choice and reasons for that choice.

• Question uestions should not be lengthy.
• Question uestions should be short/precise and to the point.
• Use simple language and convey the same meaning to everyone.
• Question uestions should be sensitive to the audience.
• Question uestions should not be too personal/ more general.
• No G.K. questions like who is the prime minister.

Advantages

• You can cover a large area in limited time period and large number of people.
• Objective, subjectivity doesn’t enter into it.
• Comparatively less expensive.
• Investigator’s presence is not required.
• No bias as there is no face to face interaction.
• Many questions can be covered.
• No hesitation for the respondent.

Disadvantages

• Many a time questionnaires are not taken seriously.
• Might be incorrectly filled out.
• False identity.
• You may not get it back.
• Could be incomplete.
• Can’t clarify doubts.
• Illiterate people can’t answer.

Q3.What is an interview? Discuss its advantages and disadvantages. (HOTS)
Answer:
In interview, a set of questions are asked face to face by the interviewer. Interview may be structured or unstructured. The success of interview depends on the following factors:

• Interviewer must be framed, sensitive, confident and qualified.
• Have some background of Interviewee.
• Should be well prepared for the discussion.
• Should be in control.
• Patient not pushy.
• Just guide the interviewee.
• Be as objective as possible.
• Has to have alternative questions.
• Should not deviate from the topic chosen.
• Question uestions showed always go from easy to difficult.

Advantages

• Facial expressions can give away emotions to a certain extent. Almost all questions are answered.
• No false identity.
• Question uestions are taken seriously.
• Universally acceptable.

Disadvantages

• Interviews are time consuming
• Expensive
• There is bias and subjectivity.

How can a researcher avoid bias and error?

• Interviewer should not get involved emotionally.
• Not forget the objective of the interview.
• Not deviate from what he /she has to find out.

Q4.What is observation? Discuss its types.
Answer:
Observation: It refers to systematically attending, recording and processing information through direct participation and observation of the group, tribe or community which is included in the study. •

• There is use of vision for collection of data.
• Collection of data by watching people’s behaviour without actually interfering with it.
• Noting down the data as it happens with regard to the cause, phenomenon and effect.

Observation – as a sociological research:

• Specific, valid, reliable, accountable, precise
• Precise and no extra details
• Objectivity.
• Researcher’s opinion should not be expressed.
• Validity is important. What you are observing must be related to the problem.
• Has to be reliable and accurate.

Types of Observation
Participant

• When you are a part of the observation, e.g. in a wedding, you are part of music and dancing along with observing.
• Participant takes active part in all activities of the observed group.
• Observed may or may not know the identity of the observer.
• Usually the identity of the observer is not known as the observed will become very conscious.
• Subjectivity is present and will be more as your identity bias.
• Complete participant observation : identity of observer is not known.
• Observer stays with the people for days/months. He gets completely involved in activities of group and stays with them in order to understand them completely and thorougly.

Non-Participant

• When you observe from outside. The observer is not part of the group that is being observed, e.g.; sitting out in sangeet.
• Observed may or may not know of the observer’s identity.
• More objectivity than subjectivity-less bias.
• Notes more than participant observer.
• Personal bias may contaminate the results.
• Question uantitative data is less and difficult to find.
• Noting sequence is after observation.

Steps involved for participant and non-participant observation:

1. Selection of appropriate group.
2. Familiarise with group and its activities.
3. Do research in sequence.
4. Get involved /observe from outside depending on the type of participation.

Q5.Elaborate on the functional method used for the study of sociology.
Answer:
This approach appeared initially as a reaction against the methods and claims of the evolutionists. Functional analysis is a method of sociological enquiry which examines social and cultural items by locating them in a wider context. This usually means showing how these items affect and are affected by others with which they coexist over time, within the same social system. In other words, functional method refers to the functional analysis which is also known as “functionalism”. This asserts that the principal task of sociology is to examine the contribution of social items that make the social and cultural life of human collectivities. It examines social phenomenon in a way so as to explain why these items occur at all,why they have persisted?
The central concern is with the source of order and stability in society.
The focus is on:

1. The way social institutions help to maintain order and continuity in social life.
2. The way structural arrangements in society influence behaviour.

It may be said that functional analysis is a method which refers to factors and forces of integration, equilibrium and also disequilibrium. At a given time, inter-relation between components of society can be studied from functional point of view.

Q6.What is survey method?
Answer:
Survey: It is a systematic collection of facts about a defined social group. The term usually refers to data collections that employ both interviewing and sampling to produce quantitative date-sets, amenable to computer based analysis.
Sampling and interviewing are employed in many other research designs. It is the combination of the two that has led to the social survey or sample survey, becoming the most important single type of social research, used by all the social sciences, market research and opinion polls.

1. Surveys can be used to provide descriptive statistics for national, regional or local population; to examine the clustering of social phenomena; to identify the social location and characteristics of subgroups for more intensive follow-up case-study research and to analyse causal processes and test explanations.

2. In recent years sociological survey analysis has been greatly extended to include the sophisticated multivariate modelling techniques that are common in econometrics.

3. One of the main attractions of the sample survey for both policy research and theoretical research is its transparency and accountability, methods and procedures can be made visible and accessible to other parties, unlike research designs that depend heavily on the contribution of individual researchers.

4. The key disadvantage is that surveys normally use structured questionnaires, which constrain an enquiry to paths fixed at the start of fieldwork.

5. Other criticism which are sometimes levelled at surveys are that numerical variables rarely provide adequate operationalization of sociological constructs; the highly asymmetric power relatipn between researcher and interviewee is detrimental to the quality of the data collected; they provide a false aura of objectivity which makes their result vulnerable to political manipulation.

6. Many of these criticisms can be overcome by good survey design and implementation.
Survey interviews may be personal, postal or conducted by telephone. Telephone surveys are particularly common.

Q7.What is sample?
Answer:
A group of people that take part in a research investigation and are presumed to be representative of the population from which they have been drawn. Because of the constraints of time, money and practicality, psychologists can hardly ever study the whole population and therefore are forced to sample from it using one of the sampling methods.

Sampling refers to the process by which research psychologists attempt to select a representative group from the population under study. As an entire population tends to be too large to work with, a smaller group of participants must act as a representative sample. In an attempt to select a representative sample and thus avoid sampling bias (the over-representation of one category of participant in the sample), psychologists utilize a variety of sampling methods, such as:

1. Random Sample: Each member of the population under study stands the same chance of being selected.
2. Stratified Sample: The composition of the sample reflects the composition of the population, e.g. 30 percent males, 70 percent females in the population determines that the sample shall contain a selection of 70 percent females, 30 percent males.
3. Question uota Sample: The researcher selects a quota of people roughly in proportion to their occurrence in the population (e.g. a quota of different age groups).
4. Opportunity Sample: Roughly a case of selecting whoever is available at the time at that location.