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Accountancy · 2022 · 3 marks
CBSE 2022 · Region 1 · Set 1 · Q11
Explain the terms 'Basic Pay', 'House Rent Allowance' and 'Tax Deducted at Source' as used in preparation of payroll.
Explain the terms 'Basic Pay', 'House Rent Allowance' and 'Tax Deducted at Source' as used in preparation of payroll.
OR
Explain 'Accounts Group and 'Loan (Liabilities).
Marking-scheme solution
Basic Pay: It is the pay in the pay scale plus Grade Pay, but does not include Special
Pay.
House Rent Allowance: It is an amount paid to facilitate employee in acquiring on
lease of residential accommodation.
Tax Deducted at Source: It is a statutory deduction, which is deducted monthly
towards Income Tax liability of an employee. It is essentially an appointment of yearly
Income Tax liability over $\displaystyle 12$ months.
OR
Q. Explain ‘Accounts Group’ and ‘Loan’ (Liabilities).
Ans. Accounts Group-Loans (Liabilities) consists of the following sub-groups:
(i)
Bank Overdraft: In computerized Accounting System, Current Bank Account,
bank Overdraft and Cash Credit is sub-group of Loan (Liabilities) because
Bank Overdraft and Cash Credit operation on day- to- day basis should be
placed under this group.
(ii)
Secured Loans: Secured Loans are fully secured against security like
(mortgage, hypothecation, pledge, etc) should be placed under this group.
(iii)
Unsecured Loans: Such loans are without any security. Examples of such
loans are: Loans from Outside parties, Directors, friends and relatives, etc.
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CBSE Class 12 Accountancy past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.