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A partner below 18 years of age is called as minor partner.

Explanation: A minor partner is one who is below the age of 18 years. A minor can be admitted to partnership only with the consent of all the partners. Moreover, such partners are only entitled to profits and are not liable to bear the share in losses of the firm.

Correct option is (c) Is a close substitute for schools.

All the partners of a firm can jointly manage the business or any one of them can manage the business on behalf of the other partners. In other words, partners act as agent as well as principal.

• One should never forget that although computer helps in studying, it is not a study material by itself. Computer helps to make the process of studying easier and faster but it does not replace the process of studying.
• One should be able to make wise use of them during their study. One should have good knowledge of computers as well as the statistical tools that we make use in them.
• Computers do not have brain of their own. We may select any data and on one click we may get the diagram and graph we aim for but, it is our duty to see that we select the correct data, give suitable commands and obtain the desired analysis and pictorial representation.
• We may also end up getting incorrect graphs and data processing if we do not know the correct formulae and commands.
• If we do not use the right commands in a computer, we may even end up losing our material.

One should take following care while using internet for education:

• Just like computer, internet is also only a tool. It cannot replace books and teachers or our own thinking and reasoning.
• A lot of bogus material, irrelevant information, misleading information, plagiarized articles are available on internet. We must avoid using such information and material.
• Readers must use their own wisdom to identify if the material given is authentic and reliable or not.
• One must use data or information only from those websites which are authentic and reliable.

There are two methods to maintain capital accounts:

1. Fluctuating capital account method;
2. Fixed capital account method.

Fixed Capital Method

Explanation: Under Fixed Capital Account Method, a partner’s Current Account is opened. In this method, the capital of the partners remains unaltered and all other transactions relating to interest on drawings, salary, etc. are recorded in the Current Account.

Under fluctuating capital method, the capital of the partners does not remain fixed but changes with each and every transaction. In this method, only one account i.e. Capital Account is maintained for each partner.

Internet is a platform that works on digital technology. The use of the internet in economics can be summarized in the following chart.

A Current Account is opened when the capital of the partners is to be kept unaltered. In such cases, all transactions relating to (except introduction and withdrawal of capital) interest on capital, interest on drawings, salary to partners, etc. are recorded in this account itself.

There are two methods of maintaining partners’ capital accounts:-

1. Fixed Capital Method

2. Fluctuating Capital Method

The interest on capital of a partner is credited to partner’s capital account.

Explanation: Interest on capital is an income for a partner. It is a kind of revenue that partners earn on the capital contributed by them in the partnership business. It leads to an increase in capital; so it is credited to Partners’ Capital Account.

Under fixed capital method, salary or commission to partner is credited to partner’s current account.

Explanation: Under fixed capital method, any transaction that leads to a change in the capital balance of the partners is recorded in the Partners’ Current Account. This is done so that the capital of the partners remains unaltered. Accordingly, salary or commission to a partner is credited to the respective Partner’s Current Account.

importance of diagrams and graphs in economics:

1. Economics looks difficult and confusing to learners. Diagrams make economics easy and graphs remove confusion by bringing clarity in data representation.
2. Trends of certain economic parameters over various years can be observed through a single diagram or graph.
3. Graphs and diagrams help to easily understand the changes occurring in various sectors of the economy.
4. One can easily compare the distribution of economic parameters between groups/classes, regions, sectors as well as time periods.
5. When many aspects of economics which are found apparently difficult are presented through a diagram/graph, the time and effort of the presenter in explaining and of the reader fn understanding these aspects is saved.
6. Certain difficult principles of economics are easy to understand with the help of diagrams and graphs. For example, the concepts of expansion and contraction of demand and supply, price elasticity of demand and supply, etc. are made easier by way of pictures. Similarly, the trends of macroeconomic parameters can be clarified by way of time-series graphs.

1) Several authorities and agencies does the task of collection and publication of information and data related to macroeconomic indicators.

2) Since such task require lot of effort and money, these agencies compile such data in compact discs and sell in market.

3) Researchers and educational institutions buy such data CDs for their own research and analysis purpose.

Example of Data CDs available are:

CD of National Income Accounts of India

CD of Census of India

CD of Annual Survey of Industries in India

CD of NSSO (National Sample Survey Organization)

Some agencies such as CMIE (Centre for Monitoring Indian Economy) also create data and sell the data CD. They also create software containing important statistical and economic data. However, these data and CDs are purchased only by research institutes and corporations because these are very expensive.

4) We can avail several CDs containing statistical and economic data from respective ministry. For example, we can get data related to a number of schools and Students studying in Gujarat from the education ministry.

Difference between diagrams and graphs:

A person who is under the age of 18 is regarded as a minor. Generally, a minor cannot be appointed as a partner. But with the consent of all the partners, a minor may be admitted for sharing profits of the firm. Such a partner, if admitted, is called a minor partner.

Additional capital introduced by partner on permanent basis is credited to fixed capital account itself.

Aspects to be considered while drawing a diagram/graph:

1. Choice of type of diagram or graph and their presentation: One should identify and select the most appropriate type of diagram or graph. This would make the picture more effective. For example, for some type of data bar diagram is more suitable over pie diagram.

2. Clarity: The diagram/graph must look neat and clear. Different colors or shades may be used to denote the various sections of the picture.

3. Scales and Measures: Scales must be taken in accordance with the data to have an appropriate size of the diagram/graph.

4. Representation of axis: Both axis of a diagram or graph namely the X-axis and Y-axis must be denoted/represented with appropriate details about what they represent.

5. Data table and source of data: Along with diagrams and graphs one should also give the data table from which these are created. Moreover, one should also provide the source of data. By doing so, the reliability and authenticity of the diagram/graph increases.

6. Method of calculating the data: Sometimes the data is either complex or not in a way we want for our diagram. For example, we may need percentage for our diagram where in the data sheet does not contain a percentage column. When we create a diagram/graph by considering the percentage then we should mention in brief the statistical formulae or method in brief.

Graph:

A pictorial representation of observed data is called a graph.

A graph is drawn for statistical information which is not self-explanatory. In other words, the graph can neither be created nor be understood by people who do not have thorough knowledge of statistics.

A graph is drawn for data having continuous frequency distribution. For example.

1. Classification of people into various groups based on their incomes,
2. Division of students on the basis of their marks, etc.

It is a picture drawn for complex information which is simplified with the help of statistical tools or for information expressed in continuous frequency which is made presentable with the help of statistical tools.

Pie Diagram: When entire data and its different components are represented by dividing the circle in degrees proportional to the data, then a pie diagram is obtained. The degree for a component on a circle is obtained by the following formula:

Degree =  \(\frac{Component\, value}{  Total \,value } × 100\)

Points to be considered while drawing a Pie Diagram:

• 360° degrees make a circle.
• Degrees of sub-divisions are calculated and the sum of the degrees of all such sub-divisions must be 360°.
• For comparing the relevant data over two time periods or regions two pie diagrams are to be drawn side by side by taking the radius of circle proportional to their data set.

Correct option is (a) Continuous

1. Time-based Line Diagrams (Curves):

Time-based line diagram or curve show the shape or slope of relationship between two economic variables. For example, a demand curve, supply curve, etc. In this type of diagram independent variable is measured on X-axis and dependent variable is measured on Y-axis.

Uses: To show the trends of population, rate of inflation, literacy rate, etc.

2. Bar Diagram:

A diagram prepared by drawing a vertical or horizontal bar for the data on one or more variables for different places, time or things is bar diagram. In bar diagram width of each bar is taken equal and its height (length) is taken proportional to the value of the data.

Following two accounts are prepared in the fixed capital account method.

1. Partners capital accounts
2. Partners current accounts.

True.

Explanation: With the consent of all the partners, a minor can be admitted to the benefits of partnership. That is, he can be admitted as a partner but only for sharing profits of the firm. His liability is limited to the extent of capital contributed by him. Hence, the above statement is true.

1. Diagram:

A representation of observed data by way of a picture is diagram. It is drawn for self-explanatory data. To draw a diagram an appropriate scale is necessary, but thorough knowledge of statistics is not’ required.

Uses: For advertising agency to draw attention, for government to provide information, for social organisation to spread awareness.

2. Graph:

A representation of observed data by means of a line or a curve on a graph paper is graph. It is drawn for complex statistical information. To draw a graph an appropriate scale is must and also knowledge of statistics is essential to draw and understand it.

Uses: For economists to know the trends of Macroeconomic parameters.

Permanent changes in the capital are recorded in the fixed capital accounts when fixed capital . account method is adopted.

Considering interest on partners loan as an expense, it will be debited to profit and loss account and credited to partners current or capital account.

False.

Explanation: It is not mandatory that the current account of a partner will always show a credit balance. It might show a debit balance when the partner has withdrawn more than his or her share of profits from the firm. Hence, the given statement is incorrect.

A debit balance of partner’s current account will appear on the asset side of the Balance Sheet.

Explanation: A debit balance in the Partners’ Current Account represents that the partner has withdrawn more than his or her actual share of profits from the firm. Thus, this debit balance is the firm’s asset and the firm has the right to recover this from the partner.

On the asset receivable side of balance sheet, debit balance of partners current account will be shown.

When fixed capital account method is adopted, current account balance is transferred to balance sheet.

When firm adopted fixed capital account method, to record the transactions of the partner with the partnership firm, other than permanent capital, it is necessary to open partners current account.

Under fixed capital account method, the account prepared to record the transactions of the partner with the partnership firm other than permanent capital is known as current account.

Correct option is (D) Can’t say

Correct option is (D) None of these

Partners current account may have debit or credit balance.

Correct option is (C) Pictograph

Authentic data means data which is published by recognized research institutes after doing comprehensive research.

Average Variable Cost is the variable cost per unit of output. It is obtained by dividing Total Variable Cost (TVC) by total units produced or says Total Production (TP).
AVC = TVC / TP

One should take following care while using internet for education:

• Just like computer, internet is also only a tool. It cannot replace books and teachers or our own thinking and reasoning.
• A lot of bogus material, irrelevant information, misleading information, plagiarized articles are available on internet. We must avoid using such information and material.
• Readers must use their own wisdom to identify if the material given is authentic and reliable or not.
• One must use data or information only from those websites which are authentic and reliable.

Data: Economics uses a lot of secondary data. For instance, we use data on budget of a government, on banking, on agricultural production, on value of exports and imports, on poverty, on employment, on industrial production, etc. These data can be accessed from authentic websites. For example, authentic site for data and banking in India is the official website of Reserve Bank of India, for exports and imports is the website of Ministry of Commerce and Industries of Government of India. Budget related information from Ministry of Finance, Government of India and so on. Some organizations and’agencies functioning at national and international levels also collect publish as well as put data on websites. For example, CSO NSSO, WHO, UNO, CMIE, ILO, IME, World Bank and so on.

Graph:

• A pictorial representation of observed data is called a graph.
• A graph is drawn for statistical information which is not self-explanatory. In other words, the graph can neither be created nor be understood by people who do not have thorough knowledge of statistics.
• A graph is drawn for data having continuous frequency distribution. For example,
  1. Classification of people into various groups based on their incomes
  2. Division of students on the basis of their marks, etc.

Example of continuous data:

Generally, continuous data is bigger in size and complex in nature. Hence, statistical tools are used to analyze, classify and simplify it.

• A graph is generally drawn on a graph paper. A graph can extend over one or more of the four quadrants obtained by the intersection of ‘X’ and ‘Y’ axis on a plane. Moreover, it cannot be drawn without taking appropriate measurements.
• Graphs are used more by researchers and in higher education.
• Graphs are not used or published for general public. They are created by researchers for their data analysis and understanding purposes only.

Types of graphs:

Important graphs used in economic study are:

1. Time-series graphs
2. Graphs for continuous frequency distribution
   • Histogram
   • Frequency polygon
   • Frequency curve
   • Cumulative frequency polygon
3. Graphs for logarithmic data

Active learning is said to take place when some institutions or experts create live video lectures for students which the students can access through internet in order to gain learning and knowledge.

Diagram:

• A pictorial representation of observed data is called a diagram.
• Although one needs to make use of scale and measurement to draw a diagram, one does not need to have a thorough knowledge of statistics to draw it.
• A diagram is drawn for data having discrete(discontinuous) frequency distribution. For example, the data could be
  1. No. of children born in a month,
  2. Price in rupees,
  3. No. of road accidents, etc.
• Diagram is self-explanatory in nature and can be easily created and understood by anyone.
• A diagram is used by advertising companies to attract customers, by government and other organizations to provide information, etc.

Example of discrete, (discontinuous) data:

Upto certain increase in output, the curve of marginal cost slopes downward and has a negative slope. After this pointy, as production increases marginal cost also increase which results in a positive slope. The entire curve becomes hockey shaped.

Aspects to be considered while drawing a pie diagram:

• Ensure that the degrees of the total sections do not exceed 360°.
• Degrees for sub divisions are calculated in proportion to the value of the variable for that division. So, the sum total of the degrees of all such sub divisions must be 360°.
• If relevant data is to be compared across regions or time periods then two pie graphs can be drawn side by side. For a data set with a smaller total value, a circle with smaller dimensions is drawn and for a data set with larger total value, a circle with bigger dimensions is drawn.

1. Ensure that the degrees of the total sections do not exceed 360 degree and
2. Degrees for sub-divisions a’e calculated in proportion to the value of the variable for that division and the sum total or me degrees of all such sub-divisions most be 360 degree.

1. Educational websites acting as tutorials,
2. Active learning,
3. Reading material,
4. Internet helps to search required information,
5. It helps to get secondary data, etc.

1. The width of the respective bars does not represent any data and hence all bars should be of equal width and
2. The length of the respective bars should be proportional to the value of the variable which they represent.