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KARNATAKA class 11 commerce fast track revision notes

KARNATAKA class 11 commerce fast track revision notes:- we will provide complete details of KARNATAKA class 11 commerce fast track revision notes in this article.

KARNATAKA class 11 commerce fast track revision notes

KARNATAKA class 11 commerce fast track revision notes:-Accountancy : Financial Accounting

objectives of preparing financial statements

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The following are the objectives of preparing financial statements.
1. To ascertain profit earned or loss incurred by a business during an accounting period. This is estimated by preparing Trading and Profit and Loss Account.

2. To ascertain the true financial position of a business. This is reflected by the Balance Sheet.

3. To enable comparison of current year’s performance with that of the previous year’s, i.e., intra-firm comparisons. Also, to compare own performance with that of the other firms in the same industry, i.e., inter-firm comparisons.

4. To assess the solvency and credit worthiness of the business

5. To provide various provisions and reserves to meet unforeseen future conditions and to toughen the financial position of the business

6. To provide vital information to facilitate various users of accounting information in decision making process.

purpose of preparing trading and profit and loss account

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The purposes of preparing Trading Account are:

1. To calculate gross profit earned or gross loss incurred during an accounting period

2. To estimate the cost of goods sold

3. To record direct expenses (i.e., expenses incurred on the purchases and manufacturing of goods)

4. To measure the adequacy and reasonability of direct expenses incurred by comparing purchases with direct expenses incurred

5. To compare the realised efficiency and performance with the desired or proposed targets

KARNATAKA class 11 commerce fast track revision notes:-Business Studies

parameters used to measure the size of the business

The following are the various parameters that are used to measure the size of a business.

(a) Number of people hired in the business

(b) Amount of capital invested in the business

(c) Volume or value or units of output produced by the business

(d) Power consumption by the business in carrying out its activities

What is the definition used by Government of India for small scale industries?

The Government of India classifies an industry as a small scale industry on the basis of the level of investment made in it. Industries where the amount invested in the fixed assets (particularly plant and machinery) is less than Rs. 1 crore are regarded as small-scale industries. However, export-oriented units that use modern production techniques are considered as small-scale industries if their investment does not exceed Rs. 5 crore.

How do small scale industries contribute to the socio-economic development of India

Small-scale industries (SSIs) play an important role in ensuring the progress of developing countries such as India. The following points highlight their contribution.

(a) Market share: SSIs make up 95 percent of the industrial units in India. They contribute about 40 percent of the ‘gross industrial value added’ and 45 percent of India’s total exports.

(b) Employment generation: As SSIs use labour-intensive production techniques, they have a greater employment generation potential than large industries. Moreover, the skills required to perform jobs in SSIs are usually not very specific, which further increases their scope for generating employment.

(c) Wide range of products: Small-scale units produce a large variety of consumer products, such as stationery items, safety matches, handicrafts, vegetables and processed food. Besides, SSIs also produce a few items by using technology, such as calculators, televisions and engineering goods.

(d) Regional balance: SSIs produce simple products and use basic technology. In addition, these industries do not require heavy capital investment, and therefore, they can be set up by anyone anywhere across a country. Small units not only benefit the particular region where it is established but also help reduce the regional disparities in industrial development among different regions of a country.

(e) Customised goods: Small industrial units adapt perfectly to specific needs of consumers. As SSIs use simple and highly flexible production techniques, they can provide their customers with goods best suited to the customers’ tastes and preferences.

KARNATAKA class 11 commerce fast track revision notes:-Indian Economic Development

Why is calorie-based norm not adequate to identify the poor?

The calorie-based norm is not adequate to identify the poor because of the following reasons:

a) This mechanism does not differentiate a very poor from other poor. It categorises them into one category that is, ‘poor’. Consequently, it indicates whole class of poor and not, especially, those poor who are the most needy.

b) This mechanism uses inappropriate proxies for income like Monthly Per Capita Expenditure (MPCE), etc. These items do not act as suitable and appropriate proxies for income to measure calorie requirements.

c) This mechanism does not consider various important factors that are associated with poverty. These factors are health care, clean drinking water, proper sanitation and basic education. Mere estimation of calorie intake does not reflect the true economic condition of an individual.

d) Another shortcoming of calorie-based norm is that it fails to account for social factors that exaggerate and worsen poverty like ill health, lack of access to resources, lack of civil and political freedom, etc.

Therefore, because of these shortcomings in the calorie-based norm, it cannot be used to identify the poor.

What is meant by ‘Food for Work’ programme?

Food for Work (FFW) programme was started in 2000-01 with the objective of generating ample employment opportunities for unskilled labourers concentrated in the drought-affected states of Chattisgarh, Gujarat, Himachal Pradesh, M.P, Orissa, Rajasthan, Maharashtra and Uttaranchal. This programme provides food in exchange of work done by labourers. This programme was aimed to protect poor people against reduction in their purchasing power capacity in the natural calamities prone areas. The work done by the labourers includes watershed development works, water harvesting and construction of metal roads connecting rural and urban areas. This programme not only provides labourers with food but also creates semi-durable assets that facilitate economic and social development of the backward areas.

Why are employment generation programmes important in poverty alleviation in India?

The importance of employment generation programmes in poverty alleviation efforts in India are as follows:-

(i) Direct Relationship between Employment and Poverty Alleviation

There exists a positive relationship between employment and poverty alleviation. If government aims at creating new employment opportunities, then more people will be employed that will raise their income and, thus, will pull them above the poverty line.

(ii) Higher Standard of Living

With the increase in income, consequent to the new employment opportunities, poverty trodden people can enjoy higher standard of living and greater accessibility to education, better health facilities, proper sanitation, etc.

(iii) Reduce Rural-Urban Migration

Poor people tend to migrate from rural to urban areas in sought of better employment and earning opportunities. This creates undue burden on the urban areas to provide ample job opportunities to these migrants. Failure of this leads to formation of informal sector that makes these people more vulnerable in the urban areas. A positive point of employment generation programmes is that it generates ample employment opportunities in rural areas so as to reduce rural-urban migration.

(iv) Creation of Durable Assets

The employment generation programmes aim at creation of durable assets like watershed development works, water harvesting, irrigation facilities, canal building, construction of roads connecting rural areas to urban areas and construction of dams. All these assets play an important role in the social and economic development of the country.

(v) Self-sufficiency and Self-reliant Areas

The creation of these durable assets protects the poverty-trodden areas from natural calamities such as floods and droughts thereby facilitating these areas to be self-sufficient and self reliant.

(vi) Impart and Enhance Skills

Most of the employment generation programmes help in human capital formation by enhancing knowledge and imparting skills to the unskilled labourers. Such skills increase the employment prospect of the unskilled labourers in the industrial and the service sectors. This not only enhances income earning capacities of these people but also alleviates poverty simultaneously.

(vii) Reduce underemployment and disguised unemployment

Indian agricultural sector is characterised by disguised unemployment. This implies that although a labourer is engaged in agriculture but the total output won’t be affected even if the labourer is withdrawn. The role of employment generation programmes in reducing disguised unemployment is very important. These programmes engage these extra labourers in economically fruitful activities, thereby, reducing unnecessary burden on the agricultural sector.

KARNATAKA class 11 commerce fast track revision notes

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KARNATAKA class 11 commerce fast track revision notes

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