SCHOOL VIVEKANANDA

Affiliated to the Council for the Indian School Certificate Examinations, New Delhi.
NTI Layout, Rajiv Gandhi Nagar, Bangalore-97
Academic Year 2023-24
PRE-BOARD-2 EXAMINATION
Subject: Commercial Studies
Grade: 10 Marks: 80
Duration: 2 Hour 30 Mins Date: 10-01-2024
___________________________________________________________________________
Answers to this Paper must be written on the paper provided separately.
This paper is divided into two sections.
Attempt all questions from Section A and any four from Section B.
The intended marks for questions or parts of questions are given in brackets [].
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SECTION A (40 Marks)
Attempt all questions from this Section

Question 1 [16]

Choose the correct answer from the below given option:-

(i) Which of the following is the expectation of society from a business organisation?
(a) Capital appreciation in the value of their investment
(b) Protection of trade union rights
(c) To protect the environment from all types of po l l u t i o n
(d) Correct information about the company’s financial position

(ii) Which of the following is not a benefit of New Pension Scheme?

(a) Flexible
(b) Government initiative
(c) High investment charges
(d) Tax Benefits
(iii) Lisa purchased a skincare product that caused severe skin irritation and allergic
reactions. She wants to file a complaint and have her concerns addressed.
Which consumer right is essential for Lisa in this situation?

(a) Right to be informed

(b) Right to choose
(c) Right to redress
(d) Right to safety
(iv) When recording trade expenses, which side of the accounting entry is affected?
(a) Asset side of balance sheet
(b) Liability side of balance sheet
(c) Debit side of trading a/c
(d) Debit side of profit and loss a/c

(v) Social welfare law and special consumer courts are the features of______Protection
Act.
(a) Consumer
(b) Social
(c) Producer
(d) Seller
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 (vi) Marketing helps firms t o be st a b l e i n m a r k e t f o r l o n g b y cr e a t i n g _ _ _ .
(a) Profit
(b) Loss
(c) Revenue
(d) Goodwill

(vii) ‘Buy a bathing soap and get a chance to win a gold coin’ offer can be used under this
method. Identify, which sales promotion technique is this?
(1) Discount (2) Instant draw (3) EMI (4) Lucky draw

(a) Only (4)

(b) Both (1) & (2)
(c) Neither (1), (2) nor (3)
(d) All of these
(viii) Premium received on issue of shares is a
(a) Capital receipt
(b) Revenue receipt
(c) Deffered revenue receipt
(d) None of these
(ix) Which agency is responsible for enforcing the provisions of the Environment
Protection Act in India?
(a) Central Pollution Control Board (CPCB)
(b) State Pollution Control Boards (SPCB)
(c) Ministry of Environment, Forest and Climate Change (MoEFCC)
(d) All of the above
(x) Marketing is a strategy which includes
(a) All production and sales related activities
(b) All consumer behaviour related activities
(c) Market related activities
(d) All of the above
(xi) The purpose of ____________ is to attract a sufficiently large number of candidates so
that the most suitable persons can be selected.
(a) Recruitment
(b) Selection
(c) Staffing
(d) Training
(xii) is a selection test which judges the emotional ability which
will help to judge work in group.
(a) Personality test
(b) Intelligence Test
(c) Dexterity Test
(d) None of the above

(xiii) It acts as the banker’s bank.

(a) Co m m e r c i a l b a n k
(b) Central Bank
(c) Specialized Bank
(d) None of these
(xiv) have the last claim but full voting rights.
(a) Equity Shares (b) Preference shares
(c) Debentures (d) Loans from commercial banks

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(xv) The benefits of public warehousing includes:
(a) Control (b) co nv e n i e n t lo ca t i o n
(c) Dealers relationship (d) C o n s u m e r ’ s s a t i s f a c t i o n
(xvi) This budget is a summary statement of the firm’s expected inflows and outflows of cash
over a future time period.
(a) Cash Budget (b) Purchase Budget
(c) Master budget (d) Sales budget

Question 2

Distinguish between:
(i) Debit card and a Credit card. [2]
(ii) Public and Private Warehouses [2]
(iii) Variable Costs and Semi-Variable Costs [2]
(iv) Gratuity and Provident Fund. [2]

Question 3

(i) “It is the financial statement which sets out the assets and liabilities of a trading [2]
or non-trading organisation as on a particular date”.

Identify the above statement for which account it belong to. Give two reasons
why the account is to be prepared?
(ii) State two functions of CPCB. [2]
(iii) Explain the Utmost good faith principle of an Insurance contract. [2]
(iv) Mention any two objectives of Training. [2]
Question 4
(i) State any two expectations of general public from a business organization. [2]

(ii) What is meant by Unfair Trade Practice? [2]

(iii) What is cash credit? [2]

(iv) State the two main activities involved in Logistics. [2]

SECTION B (40 Marks)

Attempt any four questions from this Section
Question 5
(i) Explain any five features of Environment Protection Act 1986. [5]

(ii) Distinguish between Capital and Revenue expenditure. [5]

Question 6
(i) Elaborate any two functions of the Central Bank of a country. [5]

(ii) Write short notes on: [5]

(a) IMPS (b) False Accounting

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Question 7
(i) 'Budgets are very useful in Management'. Justify. [5]
(ii) What are the objectives of Advertising. [5]

Question 8
(i) Briefly discuss any five advantages of e-commerce over traditional commerce. [5]
(ii) Write a short note on Sales Promotion. [5]

Question 9
(i) Explain four important methods used for training. [5]
(ii) (A) Mr. Kartik owns a commercial property and has multiple insurance policies that
cover the same risk of fire damage. Unfortunately, a fire breaks out due to the
[5]
negligence of one of his employees, resulting in substantialdamage to the property.
1. Will Mr. Kartik be able to claim the insurance? Why?
2. Identify the applicable insurance principle.
(B) Mitigation of Loss as the principle of insurance. Explain.

Question 10 [10]
Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the
Year ended 31st March, 2023 from the following Trial Balance.
Closing Stock was 10,360/-
Trial Balance as on 31.03.2023

Particulars Dr. (`) Cr. (`)

Opening Stock 25,000 —
Purchases and Sales 75,000 2,00,000
Discounts 3,600 6,000
Debtors and Creditors 32,000 15,000
Bed debts 400 —
Cash-in-Hand 3,000 —
Machinery 50,000 —
Salaries 8,000 —
Carriage Inwards 2,000 —
Wages 6,000 —
Investments 20,000 —
Land and Buliding 90,300 —
Bank Overdraft — 20,000
Commissions 1,350 3,510
Interest on Investments — 2,000
Electricity 2,000 —
Rent 2,500 —
Insurance 1,800 —
Capital — 76,440

3,22,950 3,22,950

All the Best !