Test Papers – ICSE – Class – X
Std-11, Commerce, Economics, Ch-9, Infrastructural Development in India, Module-15
Okay, students, now let us study, what are the problems faced by roadways and steps to overcome those roadway problems. To start initially with problems of road transport, number 1, poor quality. Students, our roads are of poor quality, which increases the cost of maintenance of the vehicles. Vehicles are moving like dhada, dhada, dhada. So quality is very poor. To continue with the second problem, heavy traffic on roads which results into time and fuel wastage. Third problem is road transport cost is high due to heavy taxes and, you know, the prices of petrol and diesel are increasing; year by year they are increasing, students. Point number 4, it is responsible for air and noise pollution. A vehicle, a driver can see that the vehicle in front of him cannot move, then too he will baa, baa, baa which creates the noise pollution, students.
To continue students, poor problems of road transports. Large tracts of rural roads continue to remain unmetal that is kutcha and are unusable during monsoon season. To continue with my next problem, students, road transport is comparatively unorganised, there is no lane discipline in our road transport. To continue with next problem, students, not suitable for bulky goods such as heavy machinery because the speed of the vehicle becomes very slow which results into traffic. To continue, students, with my next problem, it is affected due to breakdowns and delays, as you can see in this particular picture.
So this is all about my problems of road transports. To continue, road accidents are more due to unskilled and untrained drivers and there is craze of speed in many youngsters’ lives which results into accidents. Next one, is the rural network, road network is not adequate to match traffic growth. This is all my problems of road transport. But, students, to know what, in order to overcome the above problems a number of steps have been taken. Which are those steps? Like undertaking the National Highway Development Project, which involves developing Golden Quadrilateral, these are my four metropolitan cities Mumbai, Delhi, Chennai and Kolkata so North-South and East- West corridors, port connectivity and other projects. To continue with, certain steps taken like during XI Plan apart from completing National Highway Development Project I and II, work was started on NHDP III, IV, V and VI, why, to ensure inter-regional connectivity of districts, converting single lane roads into two lane roads, so that the traffic gets reduced. Constructing express ways in high traffic corridors etc. Main two important steps undertaken, students.
To continue with further steps, XII Plan aims to complete these projects and also work on state highways and district roads. So, once they are done with National Highways, they will move on to state highways and district roads to ensure full connectivity, students.
To continue, it also aims to connect the remaining rural habitations by constructing new roads and upgrading existing roads.
To continue, very important point road transport will be happy and safe journey if all will start following the rules and regulations of the traffic.
To continue with the next step it is very important for the development of the country that railways and roadways should be complementary to each other, very important point, they should complement each other rather than competing with each other and they are not competitive.
To continue students, with the next step, this is because the road transport links up the cultivators with the local market and also to the nearest railway station.
And my next point is the railways link the areas of production with the consumers at a distance, so that goods can be easily supplied from one place to another place.
These were all about my problems with certain steps to solve road problems.
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Std-11, Commerce, Economics, Ch 8 Economic Reforms since 1991 and its Features, Module-03
Okay, students, let us continue with some more points of the need for economic reforms.
To continue number five, it was burden of debts. What is this burden of debts, students, all about? In 1990-91, the total debt of government of India stood at 62.5% of GDP. So what is this, students, you know, whatsoever be the GDP, of that 62.5% was the debt, was the burden on Indian economy. So India was totally caught up into the debt trap. To continue students, in this situation it was very difficult to pay even interest on foreign debts which is a sign of insolvency. What is this insolvency? It is an inability to pay one’s debt. It was impossible for our country to pay even the interest on the borrowing, students.
To continue, this shook, this disturbed the international confidence on Indian economy. All started getting scared, oh my god, Indian economy being debt trapped, insolvent, what is this. You know what, students, this not only made borrowings difficult but also resulted into outflow of deposits of non-resident Indians. So the amount of deposits, deposited by non-resident Indians started making their withdrawals. So there was a need of economic reforms to reduce this burden of debts. Very important point, students.
To continue with number six, inefficient industrial sector. You know what, students, the various controls and regulations in the industrial sector had reduced the efficiency and competitiveness of industrial units. All the industrialists were frustrated so much of regulations, so much of control. So industrial sector became inefficient.
To continue, this has led to stagnant, very slow moving industrial growth, but very important it started rising unemployment, students. So there was need of these economic reforms to convert inefficient into efficiency in industrial sector.
To continue with the next point, point number 7, there was a falling growth rate. What is this falling growth rate all about? Due to all these internal and external problems which we studied in our previous points, students the annual growth rate was just 2.6%, that’s it. And you know what, it actually reached the negative level of minus 0.6% in May 1991. What is this? There was a growth but in minus, oh my god. There was a negative growth, students. So there was a need of this new economic policy, there was a need for these reforms to accelerate the growth rate, students.
To continue with the next need, that is my wave of liberalization. What is this liberalization, students? It refers to relaxation of previous government restrictions. Remove this controlling, remove this licence raj, please. We are feeling frustrated. There was a wave of liberalization, students.
To continue, around 1990 there was a wave of liberalization all over the world. And you know what, students, several communist countries like Poland, China, Hungary, etc., started liberalizing their economies. Now why they started liberalizing? To increase their growth rate. And you know what, students, they were successful in this mission of liberalization. So India got inspired and followed and resulted into this liberalization.
So these were my certain points of need for economic reforms.
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Std 11, Commerce, Economics, Ch-1 Economic Growth and Development, Module-01
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Std 11, Commerce, Book-Keeping, Introduction to Book-Keeping, Module 16
Check our next module, it is 1.16 and that covers profit, loss and operating profit. Let’s understand profit, what is profit? Or write a short note on profit. Yes, now this is see-saw, let’s speak on this basis of this particular see-saw. On one side incomes are given, on the other side expenses are given. So, obviously incomes are more than expenses that means incomes are more. So, when incomes are more than expenses, it is profit. So, profit is excess of income for a particular period over expenses of such period. So, when income is more and expenses are less, so the difference is called as profit. So, profit is equal to we can calculate incomes and gains minus expenses and losses. Such profit can either be withdrawn by the proprietor for meeting his personal expenses or can be retained in the business in the form of reserves. So profit can be taken away by the proprietor for his own use or he can retain that particular profit in the business and if it is retained that is reserved. Now, such unwithdrawn profit retained in the business are reserves, it increases net worth that is owner’s equity of the proprietor. Now, owner’s equity you have already seen that is owner’s fund in the business, so that it can increased because of reserves.
Then opposite term loss, what is loss? Or short note on loss. So again that see-saw is there, now you can understand very easily here with this help see-saw. What will happen here, in this case now it is loss. I told you it is opposite term to profit, so obviously here expenses are more than income. So expenses are more than the differences are called as loss. Let’s see it is excess of expenses for a particular period over income of such period. Means expenses are more then in that case it is loss. See further, net loss is equal to so we have made the equation, expenses and losses minus incomes and gains. Such a loss of business it decreases net worth that is owner’s equity of the proprietor.
Then, after that next term is operating profit. What is operating profit? Or write short note on operating profit. Gross profit is excess of sales than cost of goods sold. What is cost of goods sold? COGS, it is total of expenses incurred till the goods are bought to the selling condition. So, we can say gross profit is equal to sales minus cost of goods sold that is very commonly termed as COGS. Now, operating profit is excess of gross profit over all expenses of the business. All expenses of business. Other expenses means expenses other than COGS. So other than COGS whatever expenses are there they are other expenses. All other expenses known as, operating cost which includes office and admin expenses, selling and distribution expenses and financial expenses. We can make the equation, operating profit equal to gross profit minus other expenses.
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Std 11, Commerce, Book-Keeping, Introduction to Book-Keeping, Module 01
Hello, friends, myself Nitin Mahajan and going to introduce you this subject, which is all new subject for you. And name of the subject is Book-keeping and Accountancy. So, we are going to start with Introduction to Book-keeping and Accountancy. Let’s see what is there in this particular subject.
So, first of all, basic accounting terminologies. Now there could be questions on terminologies, as define or explain or write a short note on some particular terms. So, from that point of view, this part is important to us, that is what I am talking about, examination of view. But not only that to understand this new subject, you must understand these particular terms, they are important terms. So far this subject is concerned and so that we must understand this particular subject minutely. So, let’s start with these particular accounting terminologies.
Now, the very first term that is module no.1.1, chapter number 1 and module number 1, here we are going to discuss the term business. So, let’s see accounting terminologies and the very first term is business, so, on this there could be a question. What is business or write a short note on business. So, let’s see what is business? Business includes any activity continuously carried on by a person or persons and when conducting these particular activities that is intention is to earn profit. So to earn a profit when any kind of economic activity is conducted with an intention to earn profit and that activity is called as business. Let’s see further, now as example, production of goods, now goods are produced. Whenever the producer is producing the goods, why he is producing? Because he wants to sell them, so for the purpose of selling it he is making the production. And this production process is a continuous process, so in this factory they are producing and this product will be sold out in the market. And so this is one type of business which is known as manufacturing business. So, manufacturing of goods continuously for the sale to earn profit that is the business.
Then we will see another example, buying and selling of goods. So, now here goods are purchased and sold. They are bought and sold and from that businessman is earning a profit. So, buying and selling of goods continuously to earn profit, again it is a business.
Let’s see next example, providing services. Every time it is not necessary that we are manufacturing something or we are buying or selling only, so sometimes certain businesses, they are providing services. Now, providing services through couriers and then after that this another type of service wherein we are providing the information as per requirement of the customer and if this particular activity is continuously carried on then that is called as business. So, providing different types of services regularly to earn profit again it is a business. Thus, from this we can understand business is an economic activity. Second feature, we can say that it is continuous activity. So, if any activity is conducted once or twice, even if the intention is to earn profit then it cannot be called as business. So business is continuous activity, so it is continuous activity with intention to earn profit, requires different types of resources like men, machinery, material, money. So all these factors are bought together and with this help of these, the business activity is conducted. Then after that next intention is to earn profit, yes, that is very much essential to call it as a business, there must be intention to earn profit. So, these particular activities they are called as business.
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Std 11, Commerce, Book-Keeping, Chapter Depreciation,Module 06
Let’s go to next module, methods for calculation of depreciation. So, methods for calculation of depreciation means to determine the amount of depreciation, there are different methods.
So let’s proceed further, before that we have to understand one more important term, that is Written Down Value abbreviated as WDV, very commonly abbreviated as WDV. So, what is that WDV? It is the value of assets in the books after deducting depreciation from the original cost of the asset. After deducting depreciation, we have seen depreciation is reduction, so when we deducted this depreciation, whatever is left that is called as WDV. See, further every year depreciation is charged with which reduces the book value of the asset. Because of charging depreciation its value goes on decreasing and that value we call as book value. So, book value goes on decreasing because of charging depreciation. Written Down Value goes on decreasing every year as depreciation is continuous reduction in the value of fixed assets. Depreciation is the continuous reduction every year, depreciation will be taking place and that will keep on decreasing the value of fixed assets. So that value after charging depreciation is Written Down Value.
Let’s see here one illustration, original cost of the asset Rs. 1 lakh less depreciation, we are charging depreciation on this particular asset, just one hypothetical figure we have taken here depreciation is Rs. 20,000. That we are going to see how to calculate that, but at present to understand this WDV we have taken depreciation Rs. 20,000, that means the value of fixed asset decreased by 20,000 at the end of first year. Now, tell me, friends, what is the value of asset in our books, our books value is Rs. 80,000, and the original cost one lakh, depreciation charged, so now it is 80,000 at the end of first year or beginning of second year. Now, this 80,000, what do you call this, just now we saw that value after deducting depreciation from original cost is called as Written Down Value. So this is WDV. After that second year we use it, again we charge same amount of depreciation, I told you this is just hypothetical figure just to understand this particular WDV. So, again same depreciation charged 20,000 and now at the beginning of the third year the value of the asset is 60,000. So this is book value at the beginning of the third year because of depreciation it has decreased, again this is called as WDV. So, after charging depreciation whatever is left that is known as WDV. So third year again we charge depreciation of 20,000 and now the value is 40,000, this is called also WDV. So, from this as it will go on and so on every year we will charge depreciation, every year the value goes down and that value after charging depreciation is known as WDV. And so first year 80,000, second year 60,000 and third year 40,000, value of asset after deducting depreciation is Written Down Value, whereas, the original cost never changes. So, here the WDV goes on decreasing every year but the original cost will never change. The original cost remains constant.
Then after that, let’s see further method for calculation of depreciation. Now, method, different methods are there for calculation of depreciation, number of methods are applied to calculate depreciation to be charged for the accounting period. Out of the various methods mentioned below, a suitable method is based on the nature, scope of business and concerned fixed assets as well as provision of the concerned act are adopted. So, now which method is to be followed that depends on nature of business, scope of business, after that nature of concerned fixed assets and obviously unavoidable that is the provision of laws applicable to that particular business. Now, the syllabus for FYJC prescribed first two methods only. So, out of the list of methods, two methods only are there in FYJC syllabus, remaining methods you will study in further standards. So, check first method Original Cost Method, second method Written Down Value Method, third is Annuity Method, fourth is Depreciation Method, after that Machine Hour Rate Method, after that Insurance Policy Method, Sum of years digit method, etc. Out of this only first two are applicable for the syllabus of FYJC, that is Original Cost Method and Written Down Value Method.
So, let’s move to first method which is there as per our syllabus, Original Cost Method. Understand what is that, under this method, depreciation is calculated on the original cost of asset every year at a fixed rate of depreciation or by a fixed amount of depreciation. So, every year we will calculate depreciation on the original cost, of course when you have to calculate depreciation, if the rate of depreciation is given. So, that rate of depreciation remains constant and every year it will be applied to original cost or directly will be given the amount of depreciation. So, the same depreciation will be charged every year.
Since, original cost is fixed, rate of depreciation is fixed, amount of depreciation every year is also fixed. Original cost is fixed, we have seen never changes, rate of depreciation is fixed and so, because of that amount of depreciation is also fixed. The amount of depreciation remains constant every year on a particular asset. So, it will remain constant, it will not change year by year. It is also called as Straight Line Method or Fixed Instalment Method, due to this reason as the amount of depreciation is fixed, that means the instalment of depreciation is fixed, it is also called as Fixed Instalment Method or Straight Line Method..
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