Previous Year Question Papers for Class 10 Commercial Studies
Access comprehensive previous year question papers for Class 10 Commercial Studies using the ICSE Class 10 Commercial Studies Board Exam Question Paper 2012 with Solutions. Designed to align with the 2026-27 ICSE academic guidelines, these solved papers help students assess their exam readiness and understand official marking schemes.
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ICSE Class 10 Commercial Studies Board Exam Question Paper with Solutions
SECTION A
Question 1
Distinguish between:
(a) Stakeholders and Shareholders. [2 Marks]
Answer:
| Stakeholders | Shareholders |
|---|---|
| Individuals or groups which are affected by the decision of an organisation, are known as stakeholders. | Persons and groups who have the shares of the company are known as shareholders. |
Teacher's Note:
a) Stakeholders include a broader group like employees, suppliers, customers, and creditors, whereas shareholders are strictly owners of equity shares.
b) Ensure clarity in differentiating between general affected parties and financial owners.
(b) Verbal Communication and Non-verbal Communication. [2 Marks]
Answer:
| Verbal Communication | Non-verbal Communication |
|---|---|
| It involves the use of spoken or written words to exchange information, ideas, or feelings. | It involves transmission of messages through body language, facial expressions, gestures, and tone without using words. |
Teacher's Note:
a) Verbal communication is explicit and structured through language.
b) Non-verbal communication heavily influences the meaning and emotional tone of the message.
(c) Internal Recruitment and External Recruitment. [2 Marks]
Answer:
| Internal Recruitment | External Recruitment |
|---|---|
| 1. The process of internal recruitment is less expensive as it does not involve expenses in the form of advertising for vacancies etc. 2. The management has a limited choice in choosing the most suitable candidates for the vacancies. 3. It is less time consuming. | The process of external recruitment is more expensive as it involves considerable expenses in the form of advertisement for vacancies etc. The management has a wide choice in choosing the most suitable candidates for the vacancies. It is more time consuming. |
Teacher's Note:
a) Internal sources boost employee morale as promotions are given from within.
b) External sources bring fresh talent and new ideas into the organisation.
(d) Packing and Packaging. [2 Marks]
Answer:
| Packing | Packaging |
|---|---|
| 1. Packing of goods implies placing them in suitable packets to facilitate their easy and safe handling, to ensure their quantity and quality, to protect them from any kind of damage. 2. Packing is also used for providing additional information to the consumers about the products such as contents, price, the date of manufacture, date of expiry, brand name, etc. | Packaging facilitates advertising. It lends individuality or identification to the products. It can be used to educate the consumers by telling them about the different uses of the product or the different methods of use. Packaging must be convenient, attractive, protective and economical. Besides being an ancillary service to the trading activity, packaging is fast developing in a very profitable independent industry. |
Teacher's Note:
a) Packing is physical protection of goods for transit and storage.
b) Packaging includes design, promotion, and marketing appeal of the product.
(e) Public Warehouses and Bonded Warehouses. [2 Marks]
Answer:
| Public Warehouses | Bonded Warehouses |
|---|---|
| 1. The warehouses which are run to store goods of the general public are known as public warehouses. 2. An individual, a partnership firm or a company may own these warehouses. | These warehouses are used to store imported goods for which import duty is yet to be paid. These are generally owned by dock authorities and found near the ports. |
Teacher's Note:
a) Public warehouses offer storage facilities to general traders on a rental basis.
b) Bonded warehouses act as custom-controlled storage until import duties are cleared.
Question 2
(a) What is meant by Deferred Revenue Expenditure? [2 Marks]
Answer:
Deferred revenue expenditure is heavy revenue expenditure of a nature that its benefit is not exhausted within the accounting period in which it is incurred, but is spread over a number of accounting periods (e.g., heavy expenditure on advertising a new product).
Teacher's Note:
a) It is written off in installments over the years it provides benefits.
b) The unwritten part is shown as an asset in the balance sheet.
(b) State any two expectations of suppliers from a business organisation. [2 Marks]
Answer:
1. Suppliers expect that the organisation is going to make purchases from them on reasonable terms and not to exploit them.
2. Suppliers expect that timely payments and reasonable time for the supply of goods should be maintained.
Teacher's Note:
a) Suppliers expect fair business dealings and prompt settlement of dues.
b) They also look forward to long-term business association.
(c) What do you understand by Formal Communication? [2 Marks]
Answer:
Formal communication refers to official communication that takes place through pre-defined channels in the organizational structure, flowing downwards, upwards, or horizontally to convey official policies, instructions, and reports.
Teacher's Note:
a) It follows the chain of command strictly.
b) It maintains records and accountability within the enterprise.
(d) Mention the Interpersonal Skills required for effective communication. [2 Marks]
Answer:
1. Speaking skill: Ability to speak clearly, know the subject, understand the audience, adopt the right posture, and use appropriate tone.
2. Listening skills: Listening with complete attention, positive attitude, concentration, and patience.
Teacher's Note:
a) Effective communication is a two-way process requiring active listening as much as clear speaking.
b) Empathy and non-verbal awareness enhance interpersonal relations.
(e) What do you mean by Sale on approval or Return? [2 Marks]
Answer:
Under this method, goods are actually sent to the prospective buyer for inspection and approval. If the buyer is satisfied with the quality of the goods, he approves the goods and it becomes a contract of sale; otherwise, they are returned.
Teacher's Note:
a) Property in goods does not pass to the buyer until approval is given or time limit expires.
b) It is commonly used to build customer confidence in new or specialty goods.
Question 3
(a) Mention any two points of difference between Advertising and Publicity. [2 Marks]
Answer:
| Advertising | Publicity |
|---|---|
| 1. It is a paid form of mass communication controlled by the sponsor. 2. The sponsor bears all the costs and has full control over the message. | It is an un-paid form of communication and is not directly controlled by the sponsor. It appears as news or editorial comment, giving it high credibility. |
Teacher's Note:
a) Advertising is expensive and designed specifically to promote sales.
b) Publicity is generated through media coverage of events or news about the company.
(b) Give two points of difference between Fixed Cost and Variable Cost. [2 Marks]
Answer:
| Fixed Cost | Variable Cost |
|---|---|
| 1. Fixed costs do not change in total with the level of production or output in the short run. 2. Example: Rent, salaries of permanent staff. | Variable costs vary directly and proportionately with the level of production or output. 3. Example: Direct raw materials, direct wages. |
Teacher's Note:
a) Fixed cost per unit decreases as output increases.
b) Variable cost per unit remains constant regardless of output level.
(c) Why is a Master Budget also known as a Summary Budget? [2 Marks]
Answer:
A master budget is known as a summary budget because it is a consolidated summary of various functional budgets (such as sales, production, cash, and purchase budgets) prepared by an enterprise and finally approved, adopted, and employed by management.
Teacher's Note:
a) It coordinates all functional plans into a single comprehensive plan.
b) It reflects the targeted net profit and overall financial position.
(d) What is Banking? [2 Marks]
Answer:
According to Section 5(b) of the Banking Regulation Act of India 1949, banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order, or otherwise.
Teacher's Note:
a) Banks act as intermediaries between savers and borrowers.
b) The primary functions include accepting deposits and advancing loans.
(e) Selection is a negative process. Explain. [2 Marks]
Answer:
Selection is said to be a negative process because the number of candidates rejected is much higher than the number of candidates selected. It is essentially an elimination process aimed at weeding out unsuitable applicants.
Teacher's Note:
a) Recruitment is considered a positive process as it attracts more applicants, whereas selection eliminates unqualified ones.
b) The goal is to choose the best candidate among the pool of applicants.
Question 4
(a) Mention two methods of Off-the-Job Training. [2 Marks]
Answer:
1. Lectures and Conferences: Experts deliver theoretical knowledge to a group of trainees in classrooms.
2. Vestibule Training: Trainees learn on simulated equipment in a simulated work environment away from the actual workplace.
Teacher's Note:
a) Off-the-job training focuses more on theoretical understanding and concepts.
b) It does not disrupt actual production processes.
(b) What is meant by Industrial Disputes? [2 Marks]
Answer:
An industrial dispute is any dispute or difference between employers and employers, between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment, or the terms of employment, or with the conditions of labour of any person.
Teacher's Note:
a) These disputes often lead to strikes, lockouts, or gheraos if unresolved.
b) Machinery like conciliation and tribunals are set up to settle them amicably.
(c) State two disadvantages of Water Transport. [2 Marks]
Answer:
1. Water transport is very slow compared to other modes like railways and airways.
2. It is not suitable for carrying perishable goods due to slow speed and transit delays.
Teacher's Note:
a) It is heavily dependent on weather conditions and navigability of rivers or seas.
b) It is limited to areas connected by navigable waterways.
(d) Mention any two documents used in Warehousing. [2 Marks]
Answer:
1. Warehouse Warrant: A document of title issued by the warehouse keeper certifying that the specified goods have been deposited and can be transferred by endorsement.
2. Warehouse Keeper's Receipt: An acknowledgement receipt issued to the depositor as proof of receipt of goods stored in the warehouse.
Teacher's Note:
a) Warehouse warrant is negotiable, whereas warehouse receipt is generally non-negotiable.
b) These documents facilitate trade, financing, and delivery of goods.
(e) Why do we need The Consumer Protection Act 1986? [2 Marks]
Answer:
1. To protect the interests and rights of consumers against exploitation.
2. To provide speedy and inexpensive redressal of consumer grievances.
Teacher's Note:
a) Consumers are often vulnerable to unfair trade practices, misleading advertisements, and substandard goods.
b) The Act establishes consumer councils and quasi-judicial bodies for dispute resolution.
SECTION B
(Answer any four questions from this section)
Question 5
(a) Distinguish between a Cheque and a Demand Draft. [5 Marks]
Answer:
| Basis | Cheque | Demand Draft |
|---|---|---|
| 1. Drawer | Cheque is drawn by an account holder (person). | Draft is drawn by a bank upon its own branch or another bank. |
| 2. Risk of Dishonour | It can be dishonoured due to insufficient funds in the drawer's account. | The draft amount is paid in advance, so the question of dishonour does not arise. |
| 3. Payee | A cheque can be drawn payable to bearer. | A draft cannot be made payable to bearer on demand. |
| 4. Collection Charges | The person receiving the payment may have to bear collection charges. | Commission is paid in advance by the purchaser of the draft. |
| 5. Stopping Payment | Payment of a cheque can be stopped by the drawer by giving written notice to the bank. | Payment of a bank draft cannot be easily stopped by the purchaser. |
Teacher's Note:
a) Demand drafts are considered more secure instruments for long-distance business transactions.
b) Cheques are widely used for regular day-to-day banking settlements.
(b) Describe any two objectives of Brand Promotion. [5 Marks]
Answer:
1. Providing Information: Brand promotion aims at providing complete and proper information to consumers regarding new products launched, features, prices, uses, selling centres, and special discount offers.
2. Increasing Demand: It stimulates primary and selective demand for the product, encouraging customers to buy more, thereby increasing sales volume, market share, and profitability.
Teacher's Note:
a) Brand promotion builds brand loyalty and creates a distinct identity in the market.
b) It helps counter competitor offerings and educates customers effectively.
Question 6
(a) Explain any two methods of conducting Marketing Research. [5 Marks]
Answer:
1. Survey Method: Information is gathered directly from respondents (consumers or dealers) through structured questionnaires or interviews conducted personally, via mail, telephone, or online.
2. Observation Method: Researchers observe and record the behavior, actions, or buying habits of consumers in real-time settings without direct interaction.
Teacher's Note:
a) Survey method helps collect quantitative and qualitative data on consumer preferences.
b) Observation method eliminates bias caused by respondents answering untruthfully.
(b) Give any five reasons why people consider advertising a Social waste. [5 Marks]
Answer:
1. Higher Prices: Advertising expenses are added to the cost of production and passed on as higher prices to consumers.
2. Creation of Monopoly: Heavy advertising builds brand loyalty that small firms cannot match, leading to monopoly power and consumer exploitation.
3. Wastage of Resources: Much of the money spent on advertising adds no utility to products and merely shifts demand from one brand to another.
4. Deceptive and Untruthful: Exaggerated and false claims in advertisements mislead innocent consumers into buying inferior or worthless goods.
5. Extravagance and Social Unrest: Advertising tempts people to buy things they cannot afford, fostering materialism, corruption, and social jealousy.
Teacher's Note:
a) Critics argue that advertising creates artificial wants rather than satisfying genuine needs.
b) However, supporters point out that advertising provides useful information and lowers costs through mass production.
Question 7
(a) Explain the term Social Security. Explain any two Social Security measures adopted in India. [5 Marks]
Answer:
Social security refers to the protection that society provides for its members through a series of public measures against economic and social distress caused by stoppage or reduction of earnings resulting from sickness, maternity, injury, unemployment, invalidity, old age, and death.
Two social security measures adopted in India are:
1. Provident Fund Scheme: Under the Employees' Provident Funds and Miscellaneous Provisions Act, both employer and employee contribute a percentage of wages towards a provident fund payable on retirement or resignation.
2. Pension Scheme: Family pension schemes provide long-term recurring financial assistance to employees after retirement and to their families in case of premature death during service.
Teacher's Note:
a) Social security aims at social justice and welfare of the working class.
b) These measures provide a safety net during contingencies and old age.
(b) Explain any two types of employment tests which are conducted to select employees for an enterprise. [5 Marks]
Answer:
1. Achievement (Proficiency) Tests: These tests measure the actual skills, knowledge, and proficiency already possessed by a candidate in performing a specific job (e.g., typing speed test for a typist).
2. Intelligence Tests: These tests measure a person's intelligence quotient (IQ), mental alertness, memory, reasoning capacity, and comprehension skills to judge general suitability for employment.
Teacher's Note:
a) Tests help in objective evaluation and comparison of candidates.
b) They reduce the risk of hiring unsuitable personnel.
Question 8
(a) Mention any five differences between a Commercial Bank and the Central Bank of a country. [5 Marks]
Answer:
| Basis of Distinction | Central Bank | Commercial Bank |
|---|---|---|
| 1. Position | It is the apex institution of a country's banking system. | It is one of the ordinary banking institutions operating in the country. |
| 2. Ownership | It is generally owned and controlled by the Government. | It is generally owned by private shareholders or government. |
| 3. Main Aim | Its aim is to serve the national interest and economic stability. | Its main aim is to earn profit. |
| 4. Number | There is only one central bank in a country. | There are several commercial banks in a country. |
| 5. Main Client | It acts as a banker to the Government and banks. | It acts as a banker to the general public and businesses. |
Teacher's Note:
a) The Central Bank has the sole monopoly of currency note issue.
b) Commercial banks deal directly with public deposits and loans.
(b) Briefly explain any five factors a businessman should keep in mind while selecting a suitable mode of transport. [5 Marks]
Answer:
1. Cost of Service: Freight charges and operational expenses must be economical relative to the value of goods.
2. Speed of Transport: Urgent and perishable goods require fast transport like airways or motor transport.
3. Flexibility of Service: Road transport offers door-to-door pickup and delivery with high flexibility.
4. Regularity of Service: Railways provide dependable and regular service unaffected by normal weather changes.
5. Safety and Security: Goods prone to damage require safe transit modes like roadways or secure containers.
Teacher's Note:
a) The nature and value of the commodity dictate the choice of transport.
b) Balancing cost and speed is essential for business efficiency.
Question 9
(a) A well-trained employee is an asset to the enterprise. Mention any five advantages of training. [5 Marks]
Answer:
1. Increased Productivity: Training improves employee skills and efficiency, leading to higher output and better quality.
2. Reduction in Wastage: Trained employees make optimal use of materials and machinery, minimizing wastage of resources.
3. Lower Accident Rates: Proper training ensures safety awareness, reducing workplace accidents and injuries.
4. High Morale: Employees feel valued and confident, which reduces labour turnover and absenteeism.
5. Better Supervision: Trained workers require less constant supervision, freeing managers for strategic tasks.
Teacher's Note:
a) Training bridges the gap between worker capabilities and job requirements.
b) It is an investment that yields long-term benefits for the organisation.
(b) Explain the following principles of an Insurance contract: (i) Utmost good faith (ii) Subrogation. [5 Marks]
Answer:
(i) Utmost Good Faith (Uberrimae Fidei): Both the insurer and the insured must disclose all material facts truthfully and completely. Concealment of vital facts makes the contract voidable.
(ii) Subrogation: After the insured is fully compensated for the loss insured against, all the rights of recovery against third parties pass on to the insurer. The insured cannot make a profit by recovering twice for the same loss.
Teacher's Note:
a) Utmost good faith prevents fraud in insurance contracts.
b) Subrogation upholds the indemnity principle, ensuring insurance is not a source of profit.
Question 10
Prepare Trading, Profit and Loss A/c and Balance Sheet of M/s Banerjee Enterprises for the year ended 31st March, 2010 from the given Trial Balance. [10 Marks]
Answer:
Trading and Profit & Loss Account for the year ending 31st March, 2010
| Dr. | Particulars | Amount (Rs.) | Particulars | Cr. Amount (Rs.) |
|---|---|---|---|---|
| To Opening Stock To Purchases To Carriage Inward To Wages To Gross Profit c/d | 25,000 75,000 2,000 6,000 1,02,360 | By Sales By Closing Stock | 2,00,000 10,360 | |
| Total | 2,10,360 | Total | 2,10,360 | |
| To Discount To Bad Debts To Salaries To Commissions To Electricity To Rent To Insurance To Net Profit transferred to Capital | 3,600 400 8,000 1,350 2,000 2,500 1,800 94,220 | By Gross Profit b/d By Discount By Commissions By Interest on Investment | 1,02,360 6,000 3,510 2,000 | |
| Total | 1,13,870 | Total | 1,13,870 |
Balance Sheet as on 31st March, 2010
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|---|---|---|
| Capital Add: Net Profit Creditors Bank Overdraft | 76,440 94,220 (1,70,660) 15,000 20,000 | Debtors Cash in hand Machinery Investments Land and Building Closing Stock | 32,000 3,000 50,000 20,000 90,300 10,360 |
| Total | 2,05,660 | Total | 2,05,660 |
Teacher's Note:
a) Ensure all nominal accounts are properly transferred to Trading and P&L accounts and real/personal accounts to the Balance Sheet.
b) Verify that both sides of the Balance Sheet tally perfectly at Rs. 2,05,660.
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Past Exam Papers & Solutions for Class 10 Commercial Studies
Download ICSE Class 10 Commercial Studies Board Exam Question Paper 2012 with Solutions for Class 10 Commercial Studies
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FAQs
The ICSE Class 10 Commercial Studies Board Exam Question Paper 2012 with Solutions is available for download on StudiesToday.com. It includes complete set with all sections so that Class 10 students can practice with the exact same paper that came in the ICSE exams.
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