RBSE Solutions Class 12 Accountancy Chapter 13 Application of Electronic Spreadsheet i

RBSE Class 12 Accountancy Chapter 13 Textbook Questions

RBSE Class 12 Accountancy Chapter 13 Multiple Choice Questions

 

Question 1. Which function will be used to calculate the interest portion of on installment of loan :
(a) PPMT
(b) IPMT
(c) FAPM
(d) None of the options
Answer: (b) IPMT
In simple words: The IPMT function helps you find out exactly how much of a loan payment goes towards the interest. It is a special tool in spreadsheets for financial calculations.

🎯 Exam Tip: Remember IPMT is specifically for the interest part, while PPMT is for the principal part of an installment. Knowing these specific functions is key for spreadsheet calculations.

 

Question 3. Which of the following coordinates excel work book :
(a) Workbook
(b) Worksheet
(c) Chart
(d) Worksheet and chart
Answer: (d) Worksheet and chart
In simple words: An Excel workbook is like a file that holds everything. Inside it, you have worksheets (where you put your data) and charts (which show your data visually).

🎯 Exam Tip: Understand that a workbook is the main container, and it holds both the raw data in worksheets and its visual representation in charts.

 

Question 4. For fixed the Raw and Column title in a worksheet, whereby they don't scroll, when spreadsheet is scrolled. What will be used in the following :
(a) Freeze pens command
(b) Unfreeze pens command
(c) Hold title command
(d) Marge command
Answer: (a) Freeze pens command
In simple words: If you want to keep your row or column headers visible while scrolling through a large spreadsheet, you use the "Freeze Panes" command. This helps you always see what each row or column means.

🎯 Exam Tip: The "Freeze Panes" feature is very useful for large datasets to keep headers in view, improving readability and data entry accuracy.

 

Question 5. In windows at which place do we type values and formulae :
(a) In title toolbar
(b) Through smart screen menu command
(c) In formula bar
(d) In standard bar
Answer: (c) In formula bar
In simple words: In a spreadsheet program like Excel, you type numbers and special calculation rules (formulae) into a specific area called the formula bar. This bar is usually found at the top of the window, just below the menu.

🎯 Exam Tip: The formula bar is essential for entering and editing content, especially formulas, in a spreadsheet cell. Recognize its location and purpose.

 

Question 7. Which of the following formula is incorrect :
(a) =(10 + 50)
(b) = (B7 x B1)
(c) = (B7 + 14)
(d) 14 + 15
Answer: (d) 14 + 15
In simple words: In spreadsheet programs, any calculation or formula must always start with an equals sign (=). Options (a), (b), and (c) correctly start with =, but option (d) does not, so it's not a valid formula.

🎯 Exam Tip: Always remember that an equals sign (=) at the beginning tells the spreadsheet that you are entering a calculation, not just plain text or numbers.

 

Question 8. Which function will be used for calculation of fixed depreciation?
(a) SLN
(b) RRF
(c) DVD
(d) LTF
Answer: (a) SLN
In simple words: The SLN function is used in spreadsheets to calculate the straight-line depreciation of an asset for one period. This means it finds how much an asset loses value each year in equal amounts.

🎯 Exam Tip: The SLN function is used for straight-line depreciation, which calculates an asset's loss in value evenly over its useful life. This is a common accounting method.

 

Question 9. What is the syntax, for calculation by diminishing balance method :
(a) = DB (Cost, salvage, life, 1)
(b) = FB (cost, 25, 1)
(c) = PFB (Cost, salvage, life)
(d) None of the options
Answer: (a) = DB (Cost, salvage, life, 1)
In simple words: The correct way to write the formula for calculating depreciation using the diminishing balance method in a spreadsheet is to use the `DB` function. You need to provide the initial cost, the salvage value (what it's worth at the end), its useful life, and the period you're calculating for.

🎯 Exam Tip: Be precise with depreciation function syntax. The DB function requires specific inputs for cost, salvage value, and life to accurately calculate diminishing balance depreciation.

RBSE Class 12 Accountancy Chapter 13 Very Short Answer Questions

 

Question 1. What is spreadsheet?
Answer: A spreadsheet is like a digital piece of paper that helps organize information, especially numbers, into rows and columns. It's a computer program that works like a physical ledger, letting you easily arrange and handle data in a structured way. This makes it simple to do calculations and see relationships between different pieces of information.
In simple words: A spreadsheet is a computer program that uses rows and columns to hold and organize data, mainly for calculations.

🎯 Exam Tip: Define a spreadsheet as an electronic grid for data organization, highlighting its row/column structure and calculation capabilities.

 

Question 2. Write the syntax of PPMT function.
Answer: The syntax of the PPMT function is:
`= PPMT (rate, per, nper, pv, [fv], [type])`
Here's what each part means:
* `rate`: The interest rate per period.
* `per`: The specific period for which you want to find the principal payment.
* `nper`: The total number of payment periods for the loan or investment.
* `pv`: The present value (the total amount of the loan or investment).
* `[fv]`: Optional. The future value, or a cash balance you want to attain after the last payment. If left out, it's assumed to be 0.
* `[type]`: Optional. When payments are due: 0 for end of period (default), 1 for beginning of period.
This function helps calculate the principal portion of a payment for a specific period in a loan or investment.
In simple words: The PPMT function's rule is `PPMT (rate, which period, total periods, loan amount, future value (optional), payment type (optional))`. It helps find the principal amount paid in a specific installment.

🎯 Exam Tip: When writing a function syntax, include all its arguments (rate, per, nper, pv) and clearly mention any optional ones (fv, type) along with their meanings. This shows a complete understanding.

 

Question 3. What is the process of saving the file in a spreadsheet?
Answer: To save a file in a spreadsheet program, you typically follow these steps: First, go to the 'File' menu. Then, choose the 'Save As' option. A box will appear where you can type the name you want to give your file in the 'File Name' box. Finally, click the 'OK' or 'Save' button. This makes sure your work is stored safely on your computer. If it's an existing file, just 'Save' will update it.
In simple words: To save a file, click 'File', then 'Save As', type a name in the box, and click 'OK'.

🎯 Exam Tip: Always remember the basic steps for saving a file: File menu > Save As > Enter Name > Save/OK. This is a fundamental computer skill.

 

Question 4. What is called cell and row?
Answer: A cell is the smallest unit in a spreadsheet. It is the specific spot where a row and a column meet or cross each other. This is where you enter all your data, like numbers or text. A row, on the other hand, is a horizontal line of these cells that stretches from left to right across the spreadsheet. Rows are typically identified by numbers. Together, cells and rows form the basic structure of a spreadsheet.
In simple words: A cell is where a row and column meet, and a row is a horizontal line of cells in a spreadsheet.

🎯 Exam Tip: Clearly distinguish between a cell (intersection of row and column) and a row (horizontal set of cells) as foundational spreadsheet terms.

 

Question 5. The cost of 10 year life machine is Rs 5,00,000. Explain the calculation process of depreciation by spreadsheet.
Answer: To calculate depreciation for a machine with a cost of Rs 5,00,000 and a 10-year life using a spreadsheet, we can use the straight-line depreciation method (SLN function) if no salvage value is mentioned. The formula for annual depreciation would be: `=SLN(cost, salvage, life)`.
If we assume a salvage value of Rs 1,000 as per the table provided later, the values would be:
* Cost of Machinery = Rs 5,00,000
* Salvage Value = Rs 1,000
* Life = 10 years
The formula in a spreadsheet would be: `=SLN(500000, 1000, 10)`.
This calculation would give you the annual depreciation amount, which is Rs 49,900. Spreadsheets simplify this by letting you just input the values into the function.

In simple words: To find depreciation, you use a special spreadsheet function called SLN. You put in the machine's cost (Rs 5,00,000), what it's worth at the end (Rs 1,000), and how long it lasts (10 years). The spreadsheet then tells you the yearly depreciation amount.

🎯 Exam Tip: When explaining depreciation calculation, mention the key components (cost, salvage, life) and the specific spreadsheet function (SLN) with its arguments. If a table is involved, refer to its values.

 

Question 6. Explain the calculation of compound interest by example.
Answer: Compound interest is calculated on the initial principal amount as well as on the accumulated interest from previous periods. This means your interest also earns interest, causing your money to grow faster. The general formula for compound interest is: `Principal Amount x (1 + Interest Rate / Compounding Period in Year) ^ (Compounding Period x Years)`.
Let's take an example: If Rs 10,000 is invested for 10 years at a 5% compound interest rate, compounded monthly. Here's how you can show it:
* Principal (B2) = Rs 10,000
* Interest Rate (B3) = 5% (0.05)
* Compounding Period per Year (B4) = 12 (for monthly)
* Years (B5) = 10
The formula to calculate the final amount (Amount Earned) in a spreadsheet would be:
`=B2*(1 + B3/B4)^(B4*B5)`
Plugging in the values, the Amount Earned would be approximately Rs 16,470. This calculation demonstrates how the interest grows significantly over time when compounded.

In simple words: Compound interest means you earn interest on your first money and also on the interest you've already earned. To calculate it, you use a special formula in the spreadsheet that multiplies your starting amount by `(1 + rate/periods)` raised to the power of `(periods * years)`. For example, Rs 10,000 at 5% for 10 years, compounded monthly, grows to Rs 16,470.

🎯 Exam Tip: For compound interest, explain the concept (interest on interest), provide the formula, and show a clear example with all variables defined. Highlight how the spreadsheet formula applies the mathematical concept.

RBSE Class 12 Accountancy Chapter 13 Short Answer Questions

 

Question 1. Explain the basic elements of M.S. Excel.
Answer: The basic parts of MS Excel, which is a popular spreadsheet program, are:
1. **Workbook:** This is the main file in Excel. Each file is called a workbook and can hold many worksheets, organizing information efficiently. A workbook usually opens with at least one worksheet by default, and can contain up to 255 worksheets.
2. **Worksheet:** A worksheet is a grid made of rows and columns. It's used for arranging financial documents or planning projects. Worksheets are easy to navigate and format, often with a mouse.
3. **Row:** A row is a horizontal line of cells that goes from left to right across a worksheet. Rows are typically identified by numbers.
4. **Column:** A column is a vertical line of cells that goes from top to bottom across the entire worksheet. There are 16,384 columns in a worksheet, identified by letters (A, B, C, etc., then AA, AB, etc.).
5. **Cell:** A cell is the smallest unit in Excel. It is the box where a row and a column meet. You enter all your data, like numbers, text, or formulas, into individual cells.
6. **Formula:** A formula is a set of instructions that performs a calculation. It starts with an equals sign (=) and can include standard math operations, cell references, functions, and operators to produce a new value.
7. **Function:** Functions are special, built-in formulas that help perform complex calculations. They take specific values in a certain order to give a result, making calculations quicker and easier.
These elements work together to help users manage and analyze data effectively.
In simple words: Excel has basic parts like the Workbook (the file), Worksheets (grids of rows and columns), Rows (horizontal lines of cells), Columns (vertical lines of cells), Cells (where rows and columns meet), Formulas (calculations that start with =), and Functions (ready-made formulas for complex tasks).

🎯 Exam Tip: When explaining basic elements, clearly define each term and its role within Excel. Focus on how these components work together to organize and process data.

 

Question 3. Explain the importance of spreadsheet in Accountancy.
Answer: Spreadsheets like Microsoft Excel are extremely important in accountancy because they help manage and analyze financial data effectively. Here are some key reasons:
1. **Data Management:** Accountants can store and organize large amounts of data in rows and columns, making it easy to track transactions, ledgers, and financial records.
2. **Calculations:** Spreadsheets can perform calculations very quickly and accurately. Once a formula is set, it can be applied to many cells, saving time and reducing errors in tasks like calculating interest, depreciation, or taxes.
3. **Financial Reporting:** They are used to prepare important financial statements like balance sheets, profit and loss accounts, and cash flow statements.
4. **Budgeting and Forecasting:** Accountants use spreadsheets to create budgets, analyze financial trends, and forecast future financial performance, which is crucial for business planning.
5. **Data Visualization:** Spreadsheets can convert data into various charts and graphs, making complex financial information easier to understand and present to others.
6. **Error Reduction:** Automated calculations and formulas reduce the chance of manual errors, ensuring greater accuracy in financial figures.
7. **Flexibility:** Spreadsheets are very flexible, allowing accountants to customize reports and analysis to fit specific business needs. This adaptability makes them an indispensable tool in modern accounting.
In simple words: Spreadsheets are vital for accountants because they help organize big numbers, do calculations fast, create financial reports, make budgets, and show data in easy-to-understand charts. This makes accounting work quicker, more accurate, and easier to manage.

🎯 Exam Tip: When discussing importance in accountancy, focus on practical applications such as data organization, calculation accuracy, financial reporting, and budgeting, highlighting how spreadsheets enhance efficiency and decision-making.

 

Question 4. Differentiate a spreadsheet and work book.
Answer: The terms 'spreadsheet' and 'workbook' are often used together in programs like Microsoft Excel, but they refer to different things:
1. **Spreadsheet (or Worksheet):** A spreadsheet is an individual electronic sheet made up of rows and columns where you enter and organize data. It's like a single page in a notebook. You use a spreadsheet to prepare balance sheets, profit and loss accounts, charts, and perform quick calculations. It is the active area where you directly input and manipulate data.
2. **Workbook:** A workbook is an entire file in a spreadsheet program, which can contain one or more individual spreadsheets (worksheets). Think of a workbook as a whole notebook, and each spreadsheet inside it as a separate page. A workbook provides a way to store and manage related data and calculations in an organized manner under a single file. For example, a company's annual financial data might be stored in one workbook, with different worksheets for sales, expenses, and profits.
In short, a workbook is a collection of one or more worksheets, with the worksheet being the actual grid where data is entered.
In simple words: A workbook is like a whole book, and it contains many spreadsheets. A spreadsheet (or worksheet) is like one single page in that book where you actually put your numbers and text in rows and columns.

🎯 Exam Tip: Clearly state that a workbook is the file that *contains* one or more worksheets. Use the analogy of a 'book' for a workbook and 'page' for a worksheet to illustrate the difference effectively.

 

Question 5. Explain the following functions with example :
(i) PMT
(ii) SUM
(iii) IPMT
Answer: Here are the explanations of the functions with examples:
(i) **PMT (Payment) Function:**
The PMT function in Excel calculates the payment for a loan based on constant payments and a constant interest rate over a specific period. It's used to determine how much you would pay each period (e.g., monthly) for a loan.
Syntax: `PMT(rate, nper, pv, [fv], [type])`
Example: If the interest rate is 10%, a loan amount is Rs 10,000, and the payment period is 5 years, with monthly installments. The monthly installment calculation would be:
`=PMT(10%/12, 5*12, 10000)`
This formula calculates the monthly installment, which will be approximately Rs 212.47. The source provided Rs 1291.37, which is likely an annual payment for a different total principal calculation or for a different 'type' argument. However, based on the `PMT(rate/payment in a year, 1 years * payment in a year amount)` given, if we assume 'payment in a year' is 12 for monthly, then `PMT(10/12, 5*12,10000)` would be `PMT(0.1/12, 60, 10000)`. This would give Rs 212.47 per month. If the intent was for an *annual* payment of Rs 1291.37, the input parameters for rate or number of periods would have to be different.
(ii) **SUM Function:**
The SUM function adds all the numbers in a range of cells. It's one of the most commonly used functions in spreadsheets for basic addition. You can give it individual numbers, cell references, or a range of cells to add. It simplifies adding many numbers quickly.
Syntax: `SUM(number1, [number2], ...)` or `SUM(range)`
Example: Suppose you want to add values from cells L5 to L7 for salary items and G5 to G17 for expenses.
To find the total salary: `=SUM(L5:L7)`
To find the total expenses: `=SUM(G5:G17)`
If total salary (L19) is Rs 10,500 and total expenses (C16) is Rs 4,500, then net profit (G18) would be `L19 - C16`.

(iii) **IPMT (Interest Payment) Function:**
The IPMT function calculates the interest portion of a loan payment for a specified period. It's useful when you want to know how much of your payment goes towards interest versus the principal for a particular month or year.
Syntax: `IPMT(rate, per, nper, pv, [fv], [type])`
Example: To calculate the interest portion for the first period of a loan where:
* Monthly rate (rate) = 10%/12
* Period (per) = 1 (for the first period)
* Total periods (nper) = 5 years * 12 months = 60
* Present value (pv) = Rs 1,00,000
The formula would be: `=IPMT(10%/12, 1, 5*12, 100000)`.
Using this, the interest portion of the first payment for a Rs 1,00,000 loan at 10% annual interest over 5 years (monthly payments) would be approximately Rs 833.33.
The example `IPMT (10/12; 1, 5 * 12, 1,00,000) = IPMT (B1)/B3, A7, B2*B3,B4)` in the source has some inconsistencies and might be referencing cell values from a larger spreadsheet context. However, the correct function usage is as demonstrated.
In simple words: PMT calculates the total payment for a loan. SUM adds numbers together. IPMT finds only the interest part of a loan payment for a specific time. Each function needs certain information like rates, periods, and amounts to work.

🎯 Exam Tip: For each function, provide its definition, correct syntax, and a clear, simple example. Ensure the examples demonstrate the specific use case of each function in accountancy.

 

Question 6. Mahesh takes loan Rs 5,00,000 on the rate for 5% for purchase a car. Its paid in 10 year on the basis of
Answer: To calculate the annual installment for Mahesh's car loan, we would typically use the PMT function in a spreadsheet. Given:
* Principal Amount (PV) = Rs 5,00,000
* Annual Interest Rate = 5%
* Loan Term (NPER) = 10 years
Assuming payments are made annually and at the end of the period, the formula would be:
`=PMT(rate, nper, pv)`
`=PMT(5%, 10, 500000)`
This calculation would yield an annual payment of approximately Rs 64,756.12. This amount covers both the principal and interest portions over the 10-year period. Spreadsheets make it easy to quickly determine these repayment figures for financial planning.

In simple words: Mahesh took a Rs 5,00,000 car loan at 5% interest to be paid over 10 years. To find out how much he pays each year, a spreadsheet's PMT function is used. The result is an annual installment that covers both the loan amount and the interest.

🎯 Exam Tip: Clearly state the given values (principal, rate, term) and use the PMT function for calculating loan installments. Explain what the calculated installment represents.

RBSE Class 12 Accountancy Chapter 13 Other Important Questions

 

Question 1. What is back stage view in Excel? State its main tasks.
Answer: The Backstage View in Excel, first introduced in Excel 2010, is a central area for managing your spreadsheet files. It is different from the ribbon, which focuses on content within the spreadsheet. You access it by clicking the 'File' tab in the upper-left corner of the Excel ribbon. It helps you manage tasks related to the file itself, rather than its content. The Backstage View organizes file-related commands, making them easy to find and use. This view simplifies tasks like printing or saving, improving user experience.
Its main tasks include:
* **New:** This option helps you open a brand new, empty spreadsheet.
* **Print:** You use this to print an opened spreadsheet.
* **Save & Send:** This allows you to save an opened spreadsheet and then send it using email or other methods.
* **Help:** This option gives you access to assistance and information about Excel 2010.
* **Options:** Here, you can change various settings and preferences related to Excel 2010.
* **Exit:** This option closes the current spreadsheet and exits the Excel program.
* **Save:** If a file is already saved, this quickly updates it. If not, it opens a dialog box to save it for the first time.
* **Open:** This lets you open existing spreadsheets.
In simple words: Excel's Backstage View is like a special menu you get by clicking 'File'. It helps you manage your spreadsheet files, letting you do things like open new files, save, print, get help, or change settings, instead of working on the data inside.

🎯 Exam Tip: Define Backstage View as the central location for managing file-related tasks. List its main functions, such as New, Open, Save, Print, and Options, to demonstrate a comprehensive understanding.