NIOS Class 12 Accountancy Chapter 36 Use of Spreadsheet in Business Applications Solutions English Medium As Per New Syllabus. to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 12 Accountancy Chapter 36 Use of Spreadsheet in Business Applications Notes and select need one. NIOS Class 12 Accountancy Chapter 36 Use of Spreadsheet in Business Applications Question Answers Download PDF. NIOS Study Material of Class 12 Accountancy Paper Code: 320.
NIOS Class 12 Accountancy Chapter 36 Use of Spreadsheet in Business Applications
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Use of Spreadsheet in Business Applications
Chapter: 36
| Module – 7: Application of Computers in Financial Accounting |
INTEXT QUESTIONS 36.1
Fill in the blanks:
(i) Salary is normally specified on a _____________ basis.
Ans: Monthly.
(ii) Contract of employment & Pay rules are known as _______________.
Ans: Terms & Conditions of Employment.
(iii) _____________ Allowance paid to facilitate employee in acquiring residential accommodation on lease/rent.
Ans: House Rent.
INTEXT QUESTIONS 36.2
Write the full form of the following :
(i) BPE.
Ans: Basic Pay Earned.
(ii) DA.
Ans: Dearness Allowance.
(iii) TRA.
Ans: Transport Allowance.
(iv) HRA.
Ans: House Rent Allowance.
(v) PF.
Ans: Provident Fund.
(vi) TDS.
Ans: Tax Deducted at Source.
INTEXT QUESTIONS 36.3
Fill in the blanks :
(i) ____________ is an allocation of the depreciable cost of a non-current asset over its useful life.
Ans: Depreciation.
(ii) Depreciation is a process of cost ___________.
Ans: Allocation.
(iii) Excel worksheet supports the functions of Straight Line Method, Diminishing Balance Method and _____________ Method.
Ans: Sum Of Years Digits.
Intext Questions 36.4
State True or False :
(i) In Straight Line Method, the amount of depreciation remain constant in all the years.
Ans: True.
(ii) In Diminishing Balance Method, the amount of depreciation is calculated at a fixed rate on the reducing book value of an asset.
Ans: True.
(iii) Rates of depreciation prescribed in the Companies Act, 1956 are same for all themethods of depreciation.
Ans: False.
| TERMINAL EXERCISE |
1. What is Payroll Accounting?
Ans: Payroll Accounting refers to the use of computers for maintaining the records of salary of employees. Every employee in an organisation is paid remuneration for the services rendered during a particular period, which is generally one month. To ensure uniformity and avoid subjectivity, organisations follow definite rules for determining salaries. The process of calculating, recording and managing salaries and related details with the help of computers is known as Payroll Accounting.
2. Enumerate the components of Payroll Accounting.
Ans: The components of Payroll Accounting are as follows:
(i) Earnings: Basic Pay (BP), Grade Pay (GP), Dearness Pay (DP), Dearness Allowance (DA), House Rent Allowance (HRA), Transport Allowance (TRA), and other allowances.
(ii) Deductions: Professional Tax (PT), Provident Fund (PF), Tax Deduction at Source (TDS), Recovery of Loan Instalments, and other deductions.
(iii) Gross Salary: It is the total salary including basic pay and all allowances.
(iv) Net Salary: It is the salary payable after deducting all deductions from gross salary.
3. Explain the various Earnings included in Payroll Accounting.
Ans: The various earnings included in Payroll Accounting are:
(i) Basic Pay (BP): It is the pay in the pay scale plus grade pay, excluding special pay.
(ii) Grade Pay (GP): It is the amount added to basic pay based on designation and pay scale.
(iii) Dearness Pay (DP): It is the portion of dearness allowance merged with basic pay.
(iv) Dearness Allowance (DA): It is paid to compensate for rise in prices and is calculated as a percentage of basic pay (and dearness pay if applicable).
(v) House Rent Allowance (HRA): It is paid to help employees meet rental accommodation expenses.
(vi) Transport Allowance (TRA): It is paid to cover commuting expenses.
(vii) Other Allowances: These include medical allowance, children education allowance, washing allowance, etc.
4. Explain the various items of deductions used in Payroll Accounting.
Ans: The various deductions in Payroll Accounting are:
(i) Professional Tax (PT): It is a statutory deduction levied by the State Government.
(ii) Provident Fund (PF): It is a compulsory deduction for social security, calculated as a percentage of basic pay (and dearness pay if applicable).
(iii) Tax Deduction at Source (TDS): It is deducted monthly towards income tax liability of the employee.
(iv) Recovery of Loan Instalments: It is the amount deducted for repayment of loans taken by the employee.
(v) Other Deductions: These include recovery of salary advances, festival advance, food grain advance, etc.
5. What is Depreciation?
Ans: Depreciation is an allocation of the depreciable cost of a non-current (fixed) asset over its useful life. It is a process of cost allocation by which the cost of an asset is distributed over the periods in which it is used. It is based on factors such as cost of asset, useful life and scrap value. Depreciation helps in matching the cost of asset with the revenue generated by it.
6. Give the classification of Assets.
Ans: Assets are classified into the following categories:
(i) Goodwill.
(ii) Land (Freehold and Leasehold).
(iii) Building (Factory, Office, Residential).
(iv) Plant and Machinery.
(v) Furniture and Fixtures.
(vi) Vehicles.
(vii) Capital Work in Progress.
(viii) Others.
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