Category: Maharashtra State Board Notes

By going through these Maharashtra State Board 12th Science Chemistry Notes Chapter 16 Green Chemistry and Nanochemistry students can recall all the concepts quickly.

Maharashtra State Board 12th Chemistry Notes Chapter 16 Green Chemistry and Nanochemistry

Green chemistry: Green chemistry is the use of chemistry for pollution prevention and it designs
the chemical products and processes that reduce or eliminate the use of generation of hazardous
substances.

Sustainable development: Sustainable development is the development that meets the needs of
the present, without compromising the ability of future generations to meet their own needs.

Twelve principles of green chemistry: Twelve principles of green chemistry were proposed by Paul T. Anastas and John Warner.

12 Principles of Green Chemistry –

1. Prevention of waste or by-products
2. Atom economy
3. Less hazardous chemical synthesis
4. Designing safer chemicals
5. Use safer solvent and auxiliaries
6. Design for energy efficiency
7. Use of renewable feedstocks
8. Reduce derivatives (Minimization of steps)
9. Use of catalysis
10. Design for degradation
11. Real-time analysis for pollution prevention
12. Safer chemistry for accident prevention

The role of Green chemistry:

• Promoting innovative chemical technology to design, manufacture, and use chemical products that eliminate the generation of hazardous chemicals.
• The capital expenditure required for the prevention of pollution is controlled by the use of green chemistry.
• Green chemistry helps to protect the presence of ozone in the stratosphere.
• Global warming (The greenhouse effect) is controlled by green chemistry.

Introduction to nanochemistry:

(i) Nanoscience: Nanoscience is the study of phenomena and manipulation of materials at atomic, molecular, and macromolecular scales where properties differ significantly from those at a larger scale.

(ii) Nanotechnology: Nanotechnology is the design, characterization, production, and application of structures, devices, and systems by controlling shape and size at the nanometer scale (1 -100 nm) (1 nm = 10^-9 m). Today from clothes to computer hard drives to DVD, CD players, and even cleaning products, nanotechnology plays a big part in the manufacturing of materials.

(iii) Nanomaterial: The nanomaterial is a material having structural components with at least one dimension in the nanometer scale that is 1-100 nm. Nanomaterials are larger than single atoms but smaller than bacteria and cells. These may be nanoparticles, nanowires, nanotubes, and thin films according to dimensions. They can be further classified as zero, one, and two nanomaterial dimensions.

(iv) Nanochemistry: It is the combination of chemistry and nanoscience. It deals with designing and synthesis of materials of nanoscale with different sizes and shape, structure and composition, and their organization into functional architectures. Nanochemistry is used in chemical, physical, material science, as well as engineering, biological and medical applications.

Characteristic features of nanoparticles: Characteristic features of nanoparticles are colour, surface area, catalytic activity, thermal properties, mechanical properties, and electrical conductivity.

Synthesis of nanomaterials: (1) Bottom-up approach (2) Top-down approach.

Wet chemical synthesis of nanomaterials: A sol-gel process is an inorganic polymerization reaction. It is generally carried out at room temperature and includes four steps: hydrolysis, polycondensation, drying, and thermal decomposition. This method is widely used to prepare oxidic materials.
The reactions involved in the sol-gel process are as follows :
MOR + H₂O → MOH + ROH (hydrolysis)
metal alkoxide
MOH + ROM → M-O-M + ROH (condensation)

Analysis or characterization of nanomaterials: The nanomaterial synthesized is analyzed using the following techniques.

Name of Technique	Instrument used	Information
1. UV-visible spectroscopy	UV-visible spectrophotometer	Preliminary confirmation of formation of nanoparticles
2. X-ray Diffraction (XRD)	X-ray diffractometer	Particle size, crystal structure, geometry
3. Scanning electron microscopy	Scanning electron microscope (SEM)	Structure of surface of the material that is morphology
4. Transmission electron microscopy	Transmission electron micro­scope (TEM)	Particle size
5. FTIR Fourier transform infrared spectroscopy	Fourier transform infrared spectrophotometer	Absorption of functional groups, Binding nature.

Different types of nanomaterials which can be synthesized are shown in the following figures:

Applications of nanoparticles:

• Nanoparticles are used in the manufacture of scratchproof eyeglasses, transport, sunscreen, crack-resistant paints, etc.
• It is used in electronic devices like Magnetoresistive Random Access Memory (MRAM).
• Silver nanoparticles are used in water purification systems to get safe drinking water.
• It is used in medicines.
• It is used in self-cleaning materials (lotus effect).

Advantages and disadvantages of nanoparticles and nanotechnology :

Advantages:

• Revolution in electronics and computing.
• Nanotechnology makes solar power more economical and energy storage more efficient.
• Nanotechnology is used in the manufacture of smart drugs which cure life-threatening diseases faster and without side effects.

Disadvantages :

• Nanotechnology causes environmental pollution which is dangerous for living organisms.
• Nanoparticles can cause lung damage.

By going through these Maharashtra State Board Book Keeping & Accountancy Notes 12th Chapter 8 Company Accounts – Issue of Shares students can recall all the concepts quickly.

Maharashtra State Board 12th Accounts Notes Chapter 8 Company Accounts – Issue of Shares

Share and Share Capital-

Introduction : As the volume and scale of trade and industry expanded, especially after the Industrial Revolution (i.e. around 1760), a very large unit of commercial organisation requiring large capital and greater managerial skill called joint stock company came into existence rapidly. The company fulfils its need of large amount of capital from large number of investors called shareholders. The company raises its capital in the form of shares and debentures. The capital collected through issue of shares is called “Owned Capital” and capital collected by issue of debentures is called “Borrowed Capital”.

Meaning and Definition- The owned capital of a company, when divided into a large number of small parts having equal face value is called a Share. According to Section 2(84) of the Indian Companies Act, 2013, “Share means share in the share capital of the company and includes stock except where a distinction between stock and share is expressed or implied.”

A share is a unit of measurement of the share capital of a company. For instance, a capital of ₹ 2 crore may be divided into 20 lakh shares of ₹ 10 each.

According to the provisions made under Section 86 of the Companies Act 1956, now company is authorised to issue two types of shares viz. (i) Equity Shares and (ii) Preference Shares.

(i) Equity or Ordinary Shares : The shares other than preference shares are called Equity or Ordinary Shares. In other words, an equity share is the one which has no special preferential right as to dividend or repayment of capital. They participate in the profits of the company after all preferential rights have
been satisfied. They are risk bearer and real owners of the company. They get the dividend after payment of all expenses and dividend to preference share holders. An equity shareholder has normal voting rights and a right to participate in the management.

(ii) Preference Shares : According to provisions of the Companies Act 2013, a ‘Preference Share’, is a type of share which enjoys priority or preference over equity share for the payment of dividend at a predetermined fixed rate and for repayment of capital. It means preference shareholders are paid dividend at a predetermined fixed rate before any dividend is paid to the equity shareholders. Similarly, in the case of the winding up of the company, preference share capital is refunded first.

Types of Preference Shares : The different types of preference shares are :

• Cumulative and Non-cumulative Preference Shares
• Redeemable and Irredeemable Preference Shares
• Participating and Non-participating Preference Shares
• Convertible and Non-convertible Preference Shares

Types of Share Capital-

The different types of share capital are explained below :

(1) Authorised / Registered / Nominal Capital: This is the maximum limit up to which a company is authorised to raise share capital. It is mentioned in the capital clause of the Memorandum of Association. Authorised capital is determined by considering future financial requirements of the company. It is also called ‘Registered Capital’ or ‘Nominal Capital’. It can, however, be increased subsequently by altering capital clause of the Memorandum of Association.

(2) Issued Capital: It is that part of the authorised capital which is issued or offered for subscription to the public. The company issues shares as and when it needs additional capital. Issued capital also includes the nominal value of shares issued by the company to the public for cash, bonus shares, promoters of the company and vendors other than cash. The part of the authorised capital which is not yet issued to the public is called Unissued Capital.

(3) Subscribed Share Capital: It is that part of the issued capital which the company has actually received by way of application from the public and also allotted by the Company. It is the total amount of the face value of the number of shares applied for. Subscribed share capital also covers the face value of shares issued by the company for consideration other than cash. The part of the issued capital which is not subscribed by the public is called Unsubscribed Capital.

(4) Called-up Share Capital: The company collects the capital in instalments payable on application, allotment, first call, second call, etc. Called-up share capital is that part of the subscribed capital which is demanded (called-up) by the company from the applicants of the shares. The part of the subscribed capital which is not yet called up by the company is called Uncalled Capital.

(5) Paid-up Share Capital: All the shareholders may not pay the entire amount called-up by the company. That part of the called-up capital which is actually paid by the shareholders is called paid-up share capital. It may be equal to or less than called-up share capital. The difference between called up capital and paid up capital is known as Calls-in-Arrears.

(6) Reserve Capital: According to provisions made under the Companies Act, 2013, a company may maintain reserve capital by passing a special resolution. Reserve share capital is that part of the subscribed capital which is reserved to be called-up only at the time of winding up or liquidation of the company. It is created to offer additional security to the creditors.

Treatment of Share Capital in Balance Sheet-

Types / Methods of Issue of share capital:

1. Right issue to equity shareholders (sec. 62)
2. Employee stock option scheme (sec. 62 (l)(b))
3. To Any person (sec. 62 (1) (c)):
   • Private placement of shares (sec. 42)
   • Public issue of shares
   • Sweat Equity shares (sec. 54)
4. Issue of Bonus shares to members / shareholders (sec. 63 (1))

All the above mention methods of issue of shares capital is commonly acceptable by private company and public company.

(1) Right Issue to Equity Shareholders :
Meaning: Right issue of equity shares issued by the company in which existing shareholders are given priority or right of purchasing right issue shares. And also existing shareholders may get right issue shares at discounted price.

Same accounting entries are to be passed in the books of company as those for issue of ordinary shares to the public.

(2) Employees Stock Option Scheme :
Meaning: When company issue shares to its employees at a price lower than market price for the encouragement of employees to acquire ownership in the form of shares is known as Employees stock option scheme.

New accounts like Employees Compensation Expense account, Deferred Employees Compensation Expense account, etc. are opened. Based on fair value and intrinsic value of option, Accounting value is found out.

(3) (a) Private Placement of Shares :
Meaning: Direct private offering of the company’s securities to a selected group of sophisticated investors.

• Private placement is governed through SEBI.
• It is less expensive and less time consuming process.

(b) Public Offer:
Meaning : Public offer of shares implies selling of shares which are listed on stock exchange directly to public by issue of prospectus.

Through IPO capital collected is recorded as stockholder equity in the Balance Sheet.

(c) Sweat Equity Shares :
Meaning: When equity shares are issued by a company to its directors or employees at a discount or for any consideration other than cash, for any obligation of either side etc. is known as sweat equity shares. (Section 2(88) of the companies Act, 2013)

If the consideration is not by the way of cash, then it can be carried to the Balance Sheet of the company as per accounting standards.

(4) Issue of Bonus Shares :
Meaning : When company distributed equity shares to its current shareholders as fully paid, without any charge, then it is known as bonus shares.

Amount of Bonus shares transferred from different reserve to equity share capital.

Accounting for Share Capital-

Public Issue of Shares:
This is one of the important methods of issue of shares in primary market where new and first hand securities like shares and debentures are sold. Public issue of shares implies selling shares directly to public by issue of prospectus. Under this method issuing company makes direct appeal to the public or prospective investors to buy its shares. The procedure adopted by the issuing company to subscribe its shares is stated as follows :

(1) Issue of Prospectus : Under this method, the issuing company invites the prospective investors or the public to make an offer to purchase its shares through a prospectus. The prospectus gives details of number of shares offered to the public, the face value of shares and amount to be paid on application, allotment and calls.

(2) Receipt of Application : An offer made by the prospective investors to buy the shares is called an application. According to Section 39 (2) of the Companies Act, 2013, a company must receive at least 5 % of the nominal of face value of each share applied for or such other percentage or amount as may be indicated by SEBI. While calculating the amount of application money, premium and discount should not be taken into account. The company makes its application forms available to the public through its brokers and banks. All the money received on application for shares must be deposited in a scheduled bank.

(3) Allotment of Shares : The allotment of shares means distribution to the applicants all or certain number of shares in response to their applications. A company is allowed to make allotment of shares only after receiving minimum subscription amount of 90 % of the issued amount within 60 days from the date of closure of issue. If the company accepts the applications, it issues letter of allotment to the applicants and in case of rejection of shares it issues letter of regret to the applicants and the application money is refunded to the applicants.

(4) Calls on Shares : Call on shares is a request or demand made by the company to its shareholders to pay the whole or part of unpaid balance on shares held by them. There may be 1st call and 2nd and final call. The maximum amount of call per share should not exceed 25 % of the face value of the share. For instance, if the face value of the share is ₹ 10, the amount of a call should not exceed ₹ 2.50 at a time. A minimum notice of 14 days should be issued by the company to the members for the payment of call.

Pro Forma Journal Entries for Accounting of Issue of Equity Shares :

Issue of Shares at Par, Discount and Premium :

The value or price which is fixed for each share by the company is called face value. It is specified in the Memorandum of Association of the company. The value or price at which a company decides to sell its shares is called issue price which is different from its face value. Shares may be issued by the company to the public either at par or at a premium or at a discount.

Issue of Shares at Par : Shares are said to be issued at par when they are issued at their face value.
Example : When a share of ₹ 10 is issued at ₹ 10 only, it is said to be issued at par.

Issue of Shares at a Discount : Shares are said to be issued at a discount when they are issued at a price, less than their face value.

Example : When a share of ₹ 10 is issued at ₹ 9, it is said to be issued at a discount. In this case the difference between the face value and actual selling price is called the amount of discount, i.e. ₹ 10 – ₹ 9 = ₹ 1.

Pro forma journal entry for issue of shares at a discount:

When a discount is allowed at the time of share allotment:

Note : (i) Discount on issue of shares is a capital loss to the company. Hence it is shown on the assets side of Balance Sheet under the head “Miscellaneous Expenditure” as “Discount on Issue of Shares”.
(ii) As per new provision of government Act (2013), Public issue of shares cannot be at a discount.

Issue of Shares at a Premium : Shares are said to be issued at a premium when the shareholders are required to pay a price higher than the face value of the shares. The difference between the issue price and the face value is called the premium. For example, if a share whose face value is ₹ 10 is issued by the company at ₹ 50 the share is said to be issued at a premium of ₹ 40. Section 78 of the Companies Act, 1956, provides that the premium amount collected by the company must be deposited into a separate account called Share Premium Account. It is considered as capital gain. Share premium amount must be disclosed separately in the Balance Sheet of the company.

The share premium amount should be used for the following purposes :

• Premium amount cannot be paid as dividend to a shareholders. However, premium amount may be capitalised by the company by issuing fully paid bonus shares free of charge at a pro-rata basis to the existing equity shareholders.
• The amount received as premium is required to be deposited in a separate Bank Account called Share Premium Account.
• To write off the preliminary expenses of the company.
• To write off the expenses paid, commission paid or discount allowed on any issue of shares or debentures of the company.
• To provide for the premium payable on the redemption (repayment) of the redeemable preference shares or debentures of a company.
• To buy back its own shares.

Pro Forma Journal Entries for Issue of Shares on Premium :

(1) When premium amount is called by company with application money :

(Being money received with application transferred to Share Capital A/c and Securities Premium A/c)

(2) If premium amount is called with allotment money :

(Being share allotment money and premium amount due from shareholders)

Over Subscription and Under Subscription-

Over Subscription : When a company is in receipt of shares more than those actually offered or issued to the public, the issue is said to be over-subscribed. In case of over subscription, the company allots the shares by selecting any one of the following methods :

(i) Lottery method (ii) Pro-rata method (iii) Firm allotment method and (iv) Datewise method.
In the recent era most of the companies adopt pro-rata method to allot the shares. Under pro-rata method each applicant is allotted shares in proportion to the number of shares applied for by him.
Under Subscription : When a company is in receipt of applications for shares less than those actually offered or to be issued to the public, the issue is said to be under subscribed.

Full Subscription : When a company is in receipt of applications for shares equal to those actually issued to the public, the issue is said to be fully subscribed.

Pro Forma Journal Entries for Over Subscription:

Pro-rata / Proportionate Allotment:
When the number of shares applied for, is more than the number of shares issued, then directors proportionately issued shares on the basis of total shares application received and the number of shares issued. Under this circumstances, each applicant gets the shares less than those demanded or applied by him. In other way, directors can reject certain excess applications and refund their money and can allow full shares to some applicants and make pro-rata allotment to other where excess application money received adjusted with allotment money demanded.

Journal Entries:

(Being excess application money adjusted with allotment money)

Calls-in-Advance and Calls-in-Arrears-

Calls-in-Arrears : On account of several reasons, some shareholders fail to pay allotment or call money inspite of reminders sent to them. Such unpaid instalments are called Calls-in-Arrears. It is also called Unpaid Calls. Calls-in-Arrears represent the amount due but not yet collected from shareholders.
It is deducted from the called-up capital. The balancing amount represents paid-up capital. Paid-up capital is shown in the Balance Sheet. The defaulter shareholders are required to pay interest on the unpaid call amount at the rate of 5 % per annum for the period from the due date to the date of payment of such call amount. Usually provisions made in Articles of Association empower the directors to charge interest on the amount of Calls-in-Arrears.

Pro Forma Journal Entries of Calls-in-Arrears :

(1) Entry to record calls-in-arrears :

(Being share allotment money and call money still outstanding)

(2) Interest due on calls-in-arrears :

(Being interest on unpaid calls due)

(3) Receipt of interest:

(Being interest on outstanding calls received from shareholders)

Calls-in-Advance : A company may receive the money in advance from the shareholders, on the calls yet to be made. Calls-in-Advance is accepted by the company only when Articles of Association authorise the company to do so. As per Table A’, a company is required to pay interest at the rate of 6 % per annum on the amount received in advance to the shareholders. At the end of the accounting the balance appearing in the Calls-in-Advance Account is shown in the Balance Sheet under the head ‘Share Capital’. However it is not added to share capital.

Pro Forma Journal Entries of Calls-in-Advance :

(1) Receipt of call-in-advance :

(Being amount received for Calls-in-Advance)

(2) Adjustment of calls in advance :

(Being amount of calls in advance adjusted)

(3) Interest due on calls-in-advance :

(Being interest due to shareholders)

(4) On payment of interest on the amount of calls-in-advance :

(Being interest amount paid to shareholders)

(5) Transfer of interest on calls-in-advance to Profit and Loss A/c :

(Being interest transferred to Profit and Loss A/c)

Issue of Shares for Consideration other than Cash-

Many times a company may purchase some fixed assets such as building, machinery, furniture, etc., and pay purchase consideration to the vendor partly in cash and partly in the form of fully paid equity shares. It may also take over the business of partnership firm or other company and pay purchase consideration partly or fully in the form of fully paid-up shares.

Pro Forma Journal Entries for Issue of Shares for Consideration Other than Cash :

(1) Purchase of fixed assets :

(Being assets and liabilities taken over at agreed values and balance amount payable to vendor)

(2) Purchase consideration paid to vendor :

(Being purchase consideration paid by issue of fully paid shares at premium)

Allotment / issue of Shares to Promoters :
Sometimes a company compensates its promoters for their meritorious services by issuing its shares to them without receiving any payment. The full amount of these shares is regarded on the cost of goodwill. Entry is passed just same as purchase of any asset for consideration of shares :

Accounting Treatment for-

Forfeiture of Shares:

When a shareholder fails to pay the call money or premium on the shares in spite of repeated reminders and warnings, the company forfeits the shares of such defaulters by passing an appropriate resolution in a Board Meeting. Forfeiture means the compulsory termination of membership and the confiscation (taking possession by law) of the shares of defaulting members by way of penalty for the non-payment of a fixed instalment, call or premium. The Articles of Association of a company, therefore, can empower the Board of Directors of the company to forfeit the shares in case of non-payment of call money. The amount of forfeited shares is transferred to a separate account known as Forfeited Shares Account in the books of accounts of the company. At the end of the accouting year, the balance of Forfeited Shares Account is shown on the Liabilities of Balance Sheet under the heading ‘Share Capital’.

Pro Forma Journal Entries of Forfeiture of Shares and Re-issue of Forfeiture :

1) Forfeiture of shares issued at par :

(Being shares forfeited for non-payment of 1st or 2nd or Third final call money)

2) For forfeiture of shares issued at premium :

(Being share forfeited for non-payment of lst/2nd/final call money)

3) For forfeiture of shares issued at discount:

(Being shares forfeited for non-payment of allotment / First / Second / Final call money)

4) For re-issue of forfeited shares at par :

(Being forfeited shares re-issued at par)

5) For re-issue of forfeited shares at premium :

6) For re-issue of forfeited shares at discount:

(Being forfeited shares re-issued, at discount)

7) For transfer of Share Forfeited A/c :

(Being balance in Share forfeiture A/c transferred to Capital Reserve A/c)

Re-issue of Forfeited Shares :

Forfeited shares remain in the custody of company and become the property of the company. Hence, forfeited shares can be resold by the company at any price. Usually they are sold through auction. They cannot be allotted to the public.

• The issuing company should see that loss incurred on re-issue of forfeited shares should not exceed the forfeited amount.
• If the loss incurred on re-issue of forfeited shares is less than the amount so forfeited, the surplus supposed to be transferred to ‘Capital Reserve Account’.
• If the loss incurred on re-issue of forfeited share is greater than the amount so forfeited, the deficit or loss is required to be transferred and debited to ‘Forfeited Shares Account’.
• If forfeited shares are re-issued at premium, the excess amount so received is to be credited to ‘Share Premium Account’.
• If forfeited shares originally issued at discount are re-issued at loss, the loss incurred on issue of shares originally at discount is to be debited to ‘Discount on Issue of Shares Account’ and the loss incurred on re-issue of shares is to be debited to ‘Forfeited Shares Account’.
• If the total of the amount of forfeiture and amount received on re-issue of shares exceed the face value of the shares re-issued, such surplus amount is required to be transferred to ‘Capital Reserve Account’.

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 3 Entrepreneurship Development students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 3 Entrepreneurship Development

→ Factors of production: The basic things or inputs or resources such as land, labour, capital and entrepreneur used in the process of production to produce economic goods.

→ Risk-bearing The function of a trader to assume some non-insurable risks such as risk of deterioration in the quality of goods due to passage of time, the risk of spoilage, fall in demand due to a change in fashion, etc.

→ Finance The provision of money for a particular purpose such as capital to build a factory or to run a business, or a loan to a farmer.

→ Technology A body of information and techniques and of skills and experience, developed for the practical purposes including production and use of goods and services.

→ Raw materials: Materials acquired to manufacture a product, e.g. sugar cane is the raw material for a sugar factory.

→ Research and development: Two closely related activities in modern industry by which new products and processes are being continuously developed especially by engineers, designers and scientists.

→ Human resources: The quantity, quality, character and calibre of the people working in a business enterprise. Human resource is one of the important resources of an organisation which makes other resources active.

→ Subsidy: Money or incentive given by the government to certain producers, such as farmers, to help them to produce without loss to themselves and yet at a low price, e.g. export subsidies to encourage foreign trade.

→ Tax holidays: Tax holiday means for the purpose of growth and development the government allows certain factories or industries established in backward areas not to pay any tax to the government for a certain period, say 5 years or more.

→ Capital formation: The practice by consumers of increasing their stock of wealth by not consuming it now; instead, some of it is used to increase the supply of capital goods such as machinery and buildings needed to produce further goods.

→ Auxiliary industries: Service (tertiary) industries such as transport, insurance, bank, etc. which provide supplementary or supportive services to primary and secondary industries.

→ Service tax: A tax levied by the government on various services rendered by the individuals, firms, companies, etc.

→ Corporate tax: A tax charged by the government on the assessable profits of individual firms or a limited company during each accounting period. The rate of corporate tax directly varies with the level of profits of the company. It is as good as income tax payable by companies to the government.

→ Value Added Tax (VAT): A tax levied on a product at each stage of manufacture or distribution in proportion to the estimated increase in its ultimate sales values.

→ Excise duty: An indirect tax levied on the consumption of particular goods. It is often levied at higher rates on the goods whose consumption are injurious or harmful to health, e.g. tobacco, alcohol, etc.

→ Customs duty: A tax imposed by the government on goods imported from abroad. Customs duty is charged either in the form of a percentage of the value of the goods or as a specific duty according to the volume of the goods.

→ Demonstration method: The basic method of instructions for teaching skills type subject matter. This method is recommended for teaching a skill because it covers all the necessary steps in an effective learning order.

→ Socially disadvantaged group: A group whose members have been subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities.

→ Semi-finished goods: Products that have not been completely assembled or manufactured and usually sent to other departments for finishing and converting them into finished products.

→ Consumers’ education: Knowledge and necessary information given to the consumers to educate and guide them about their rights and duties, marketing procedures, quality standards, availability of credit, etc.

→ Education cess : Cess is an alternative term for a tax. The term ‘cess’ is still frequently used in a few countries including Britain and Ireland to indicate a local tax, Scotland, to indicate a land tax and India applied as a suffix to indicate a category of tax such as property cess, education cess, etc.

→ Income inequality: A considerable gap in the earnings of various sections of society. On one side we find a sizeable number of people earning say ₹ 20,000 – 30,000 per month and another class of people earning millions of rupees per month.

→ Entrepreneurship: The activity of setting up a business, taking on financial risk to earn profit.

→ Innovators: A person who introduces new methods, ideas on products.

→ Entrepreneurs: A person who sets up a business, taking on financial risk to earn profit.

→ Private enterprise: Business on industries that is managed by independent companies or private individuals.

→ Industrial Base: The part of a country or region that is involved in producing goods in large quantities in factories.

→ Freelancing: Freelancing is a self employed person who offers services, by working on several
jobs for various clients at one time.

→ Synthesis: The combination of components or elements to form a connected whole.

→ Hindrances: A thing that provides resistance, delay or obstruction to something or someone.

→ Parametry: A numerical or other measurable factor forming one of a set that defines a system or sets the condition of its operation.

→ Aggrandize: To increase the power, status of wealth. „

→ Incalculable: Too great to be calculated as estimated.

→ Pervasiv : Spreading widely throughout an area or a group of people.

→ Standardisation: The process of making something confirm to a standard.

→ Fatigue: Reduce the efficiency by prolonged activity. ‘

→ Micro finance: Micro finance is a category of financial services targeting individuals and small ‘
business.

→Socio-Economic: Relating to or concurred with the interaction of social and economic factors. –

→Capital gain: A profit from the sale of property or an investment. x

→Incubators: A place, especially with support staff and equipment, made available at low rent to new small business.

→ Greenfield Enterprise: In infrastructure, the projects on the unused lands where there is no need .
to remodel or demolish an existing structure are called greenfield enterprise/project.

→ Collateral security: Collateral security is an asset which a borrower is required to deposit with or pledge to, a lender as a condition of obtaining a loan. It can be sold off if the loan is not repaid.

→ Moratorium period: A moratorium period is a time during the loan term when the borrower is not required to make any repayment.

→ Agritourism: Tourism in which tourists stay with local people in rural areas.

Introduction-

Entrepreneurship is a full time job which requires dedication and hard work. They are innovators, producers, owners, creators, etc. They are regarded as ‘fourth factors of production’.

History –

• In the early 16th century, the term ‘Entrepreneur’ was used by Frenchman for men leading in military expeditions.
• In France, contractors or architects were called entrepreneur around 1700 AD.
• The French economist Richard Cautillon used this term for business and economic activities, in early 18th century.
• In 1848, the famous economist John Sturt Mill described ‘Entrepreneurship’ as the founding of a Private enterprise.
• In India, the industrial base of our economy was very poor at the on set of independence.

The industries were facing difficulties, like shortage of raw material, capital and marketing problems, etc. However, the Indian Government is considerably enhancing the ease of doing business.

Concept-

The concept of entrepreneur differs from industry to industry, country to country and time to time. An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. The common words ‘businesses’ and ‘risk’ are f interrelated. If there is no real business or risk, a
person cannot be called as an entrepreneur.

• The small businessman having a grocery shop or the founder of a laundry service across the street is an entrepreneur.
• The founder of the multi-billion companies like Reliance, Tata is an entrepreneur.
• The freelancing plumber, carpenter, electrician work for himself is also an entrepreneur.

The entrepreneurs are passionate to innovate, lead, invent or pioneer with a disruptive product or technology. The size of business, its type, his age, education, success, failure does not matter for a person to become an entrepreneur. They have courage to share an idea or a product and try to make market a better place.

Definitions-

• Webster dictionary gives a definition, “An I entrepreneur is a person who starts a business and is willing to risk loss in order I to make money.”
• The Oxford Dictionary defines “an entrepreneur is a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.”

Characteristics of an Entrepreneur-

• Intellectual Capabilities: An entrepreneur is a creative thinker with good intelligence. New innovative ideas are always floated by these people who have the ability of creative thinking.
• Future Vision: The entrepreneur has the ability of foreseeing the future market conditions. They can take appropriate decision by considering market situations and changes in market conditions. This enables them to take timely actions.
• Hard Work: Hard work is necessary in any type of venture or business activity to make it more successful. He is required to work more tediously, sincerely and seriously for long hours.
• Technical Knowledge: The entrepreneur should have adequate technical knowledge about the products, process, etc. He should also update his technical knowledge to understand latest changes take place in technology.
• Communication Skills: The entrepreneur should have good communicate skill and command over language he speaks. Good communication skill is important to convey ideas and influence customers, employees, creditors, etc.
• Highly Optimistic: To be successful, he should have positive thinking and approach in all the activities he undertakes.
• Risk- bearing capacity: He should be calculative in taking risk while facing challenges and seek more new opportunities.
• Self Confidence: He should be self confident to achieve his goals. He should keep himself motivated and confident to face various obstacles.

Qualities of a Successful Entrepreneur-

• Disciplined: An entrepreneur should have comprehensive strategies and tactics to accomplish the organisational goal. Successful entrepreneur is disciplined enough to take steps every day towards the attainment of his objectives.
• Confidence : An entrepreneur is confident with the knowledge that he will make his business succeed. He shows that confidence in everything he does.
• Open Minded: An entrepreneur has the ability to look at everything around him and realizes that every event and situation is a ‘business opportunity.’
• Self Starter: An entrepreneur is proactive, not waiting for someone to give him permission. For everything that needs to be done, he should start it himself.
• Competitive: An entrepreneur knows that he can do a job better than others. He needs to be competitive to win every game of the business.
• Creativity: An entrepreneur often comes up with solutions which are the synthesis of other items and thus find connection between unrelated events.
• Determination: An entrepreneur is determined to make all of their endeavours succeed, so will try and try again until it does. He is not backdown by defeats or not believe the something cannot be achieved.
• Strong Communication Skills: The entrepreneur has strong communication skills to sell the product and to motivate employees so as to expand and grow business.
• Strong Work Ethics: An entrepreneur’s mind is constantly on his work, whether he is in or out of the work place to ensure that an outcome meets his expectations.
• Passion: Passion to make business better is the most important quality of a successful entrepreneur. He loves his work because there is a joy that his business gives which goes beyond the money.

Functions of an Entrepreneur-

• Innovation: An entrepreneur is basically an innovator. He introduces new combinations of means of production, new products and makes changes in the existing products to satisfy his customers.
• Determination of objectives: An entrepreneur has to determine the aims and objectives of business and differentiate between primary and secondary objectives.
• Development of Markets: An entrepreneur has to find out different ways for marketing the products and services by conducting constant research to increase customers demand.
• New Technology: Everyday there is an invention of new technology in the global world. Introduction of new and advanced technology, scientific methods will always result in growth of business.
• Good Relations: Good and efficient relations between subordinates, superior and employees is necessary to maintain healthy working atmosphere in an organisation.
• Organising Funds: An entrepreneur needs to find out different financial resources because adequate and continuous finance is always necessary for every business.
• Taking Decisions: Timely and correct decisions are important and necessary for a proper business plan. He should always consider the pros and cons for taking any business decisions.

Entrepreneurship Development-

Meaning :
Entrepreneurship is a purposeful activity of an individual or a group of associated individuals undertaken to initiate, maintain and aggrandize profit by production and distribution of economic goods and services. It is a process of setting up a new organisation.

Characteristics of Entrepreneurship :

• Innovation: Entrepreneurship is an innovation in view of changing taste of consumers from time to time. Entrepreneurship focuses on the research and development to produce goods and services to satisfy the customers.
• Economic Activity: Systematically planned activities as per his skills and knowledge to satisfy the human wants and to earn a better livelihood is quality of an entrepreneur. Hence entrepreneurship is an economic activity.
• Organisation building: It is an activity place, time and form utility is considered under one roof.
• Creative Activity: Innovation and creativity in producing something new is a big challenge for the entrepreneur. It is an essential part of entrepreneurs.
• Managerial Skills and leadership : Leadership and managerial skills are the most important quality of an entrepreneur to be successful. He should lead, have more passion of doing something new than just earning profit.
• Skilful Management: With professional and skilled managers, entrepreneurship becomes a successful activity.
• Risk-Bearing: Uncertainty is the risk which cannot be insured against and is incalculable. Entrepreneurs are risk-bearing agents in production.
• Gap Filling Functions: It is the entrepreneur’s job to fill the gap or make up the deficiencies which always exists in the knowledge about the production function.

Process of Entrepreneurship Development –

(1) Training: As against traditional thought that entrepreneurs are born, modern ways thinks entrepreneurs can be made by education and training. Training is a scheme of instructions which is planned, systematic, consistent, pervasive and monitored to measure its effectiveness. It imparts knowledge of marketing of goods, production methods, consumer’s education, etc. Training teaches an entrepreneur for the latest development which can directly or indirectly affects him. By number of methods of training, efficiency of an entrepreneur can be increased.

(2) Entrepreneurship Development Programme (EBP): EDP is a device through which people with talent, entrepreneurial traits are identified, motivated to take up new industrial venture, trained in managing the unit and guided in all aspects of starting a venture/an enterprise. These programmes are designed to strengthen motive, capabilities and help to play his role efficiently.

(3) Steps in EDP:

• Arrangement of Infrastructure.
• Selection of potential entrepreneur.
• Identification of enterprise.
• Actual training program.
• Selection of training personnel.
• Selection of method of training.
• Actual training.
• Monitoring and follow-up.

(4) Objectives of EDP:

• To foster entrepreneurial growth in the country.
• Optimum use of available resources.
• Development of backward regions and improving economic status of socially disadvantaged groups.
• Generation of employment opportunities.
• Widening base for small and medium scale industries.

Recent Initiatives in Entrepreneurship Development –

Start up India :

Meaning : A start-up is defined as an entity having its headquarter in India, which was opened less than 10 years ago and has an annual turnover of less than 100 crores. Government want to encourage entrepreneurship and to promote innovations. The MUDRA Bank’s scheme, a scheme started by Government of India, in providing micro¬finance at low interest rates to low socio-economic background entrepreneurs. It was started in 2016 for economic growth and generate large scale employment. The Government has announced start¬up Indian Action Plan in following areas :

1. Simplification and Handholding : Procedure for start up will be easy and winding up will be on fast track basis.
2. Funding support and Incentives : Indirect participation by government in funding and tax exemptions will be allowed.
3. Industry – Academia Partnership and Incubation : To introduce start up Fests, pre-incubation training, set up incubators, launch programmes for students.

Objectives of Start ups :

• ₹ 10,000 crore start-up funding pool.
• Reduction in patent registration fees.
• Improved Bankruptcy Code i.e. 90 days exit window.
• Freedom from mystifying inspections for first 3 years of operation.
• Freedom from Capital Gain Tax for first 3 years of operation.
• Freedom from tax for first 3 years of operation.
• Self-glorification compliance.
• To target 5 lakh schools, and involve 10 lakh children in innovation-related programmes.
• Encourage entrepreneurship within the country.
• Promote India across the world as a start¬up hub.
• Built Start-up Oasis as Rajasthan Incubation Center.

Stand-up India-

Stand-Up India scheme for financing bank loans between ₹ 10 lakh and ₹ 1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.

Following points to be learned:

(1) Objectives (2) Eligibility (3) Nature of loan (4) Purpose of loan (5) Size of loan (6) Interest rate (7) Security (8) Repayment (9) Working Capital (10) Margin money.

Agro Tourism (Rural Tourism)-

Meaning: Agro tourism is a commercial enterprise at a working farm, ranch, or agricultural plant conducted for the enjoyment of visitors that generates supplement income for the owner. Agro tourism provides a chance to reconnect with land and provide ‘hands on experience’ with local food to tourists.

Definition : “Agro tourism is the idea of bringing urban residents to rural areas for leisure travel and spending”.

Maharashtra is at the forefront in developing and promoting agro tourism in India. Agritourism is an activity which brings visitors to farm. It has grown in many countries of the world like Australia, Canada, US, etc. Business planning finding land, employees, record keeping, following regulations insuring crops, preparing for rainy day and its retirement all come under ‘Farm Management’.

Activities in Agro Tourism:

• Outdoor recreation.
• Educational experiences.
• Entertainment.
• Hospitality services.
• On-farm direct sales.

Intrapreneurs –

An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. The main difference between an intrapreneur and an entrepreneur is that, the latter takes financial risk while the intrapreneur does not have to invest his capital. Such innovative ideas may earn good profit for the organisation.

Definition:
Gifford Pinchot ill, “Intrapreneurs are the dreamers who take hands-on responsibility for creating innovation of any kind, within a business.”

By going through these Maharashtra State Board 12th Science Chemistry Notes Chapter 12 Aldehydes, Ketones and Carboxylic Acids students can recall all the concepts quickly.

Maharashtra State Board 12th Chemistry Notes Chapter 12 Aldehydes, Ketones and Carboxylic Acids

General methods of preparation of aldehydes:

General methods of preparation of ketones:

Preparation of Aromatic aldehydes and ketones:

Preparation of carboxylic acids:

The general reactions of aldehydes and ketones:

Reactions of carboxylic acid:

By going through these Maharashtra State Board Book Keeping & Accountancy Notes 12th Chapter 2 Accounts of ‘Not for Profit’ Concerns students can recall all the concepts quickly.

Maharashtra State Board 12th Accounts Notes Chapter 2 Accounts of ‘Not for Profit’ Concerns

Introduction-

In the society we come across with two types of organisations viz. (1) Trading organisation or Profit making organisation and (2) Non-trading organisation or Not for profit-making organisation.

Aim of Trading organisation/concern is to earn maximum profit by undertaking process of manufacturing goods or purchase of goods and sells them at a profit or to earn income by rendering services to its customers. Trading concerns prepare Trading Account, Profit and Loss Account and Balance Sheet to ascertain the profit of the firm and financial position of the firm. Examples of trading organisations are : Sole proprietorship firm, Partnership firm, Public and Private companies, Co-operative organisations, etc. Other type of organisations are Non-trading organisations and the aim of these type of concerns is not to earn profit but to give services to its members or services to the society at large.

Non-trading organisation prepare Receipts and Payments Account to get summary of cash transactions, prepare Income-Expenditure Account to ascertain whether their incomes are sufficient enough to meet their expenditures and prepare Balance sheet to know financial position of organisation as on a particular
date.

Not for Profit Organisation:

• Formed for promotion of art, culture, religion, sports, charity, health, education, etc.
• Main objective is to provide services to its members or society without profit motive.
• Collects income through subscriptions, donations, admission fees from members and grants, subsidies, concessions from Government.
• Spends its income to promote its objectives.
• Never pays dividend to its members.

Meaning of ‘Not for Profit’ Concern-

A concern or an organisation which is formed and established to serve its members and society or general public by undertaking various activities without any profit motive is called a ‘Not for Profit’ concern or organisation. Main objective of these concerns, is to provide social service and to promote art, culture, sports, education, etc. ‘Not for Profit’ concerns collects income through different sources such as subscription from its members, entrance fees / admission fees, donations, government grants or aid, subsidies, etc.

Features of ‘Not for Profit’ Concern-

The features of ‘Not for Profit’ concern are explained as follows :

• Objective :‘Not for Profit’ concern undertakes various activities without any profit motive to promote art, culture, education, religion, sports, charity, health, etc. Its primary objective is to provide goods and services to its members.
• Dividend : ‘Not for Profit’ concern is not allowed to make the payment of any dividend to its members.
• Membership :Any person who is interested in the organisation can become its member by contributing towards entrance fees, life membership fees, subscriptions, etc.
• Democratic Management : The management of this organisation or concern is looked after by the elected representatives of the members. The elected representatives form themselves into a managing committee or governing body. They elect a Chairman and other office bearers such as secretary, treasurer, etc. The Chairman is the official head of the concern. Usually office bearers are working on an honorary basis.
• Accounts to be prepared : It prepares Income and Expenditure Account to record incomes and expenses of the concern and to find out surplus or deficit. Excess of income over expenditure is called surplus while excess of expenditure over income is called deficit.
• Capital fund : It is necessary for every such organisation to have its capital fund. The capital fund of the organisation includes entrance fees, surplus, legacies and donations specifically received, for creating capital fund, etc. The excess of assets over liabilities is also termed as ‘Capital Fund’.
• Special funds :Any receipts, donations or grants received for creation of a certain funds, e.g. Prize fund, Building fund, etc. are credited to such specific funds.

Difference between Profit Organisation and ‘Not for Profit’ Organisation-

Profit Organisation:

1. Meaning: An organisation which Is established with the objective of earning profit and serving society through undertaking production or distribution of goods or services is called Profit organlsat1on.
2. Primary Objective: Primary objective is to earn profit.
3. Trial Balance: It prepares Trial Balance.
4. Net Result: It prepares Profit and Loss A/c to ascertain net result in the form of profit or loss.
5. Accounting Statements: It prepares the following accounting statements:
   (1) Trading Account (2) Profit and Loss Account and (3) Balance Sheet.
6. Owner’s Fund /Capital Fund: Capital balance and balances in Reserves and Surplus together constitute owners fund/capital fund.

‘Not for Profit’ Organisation:

1. Meaning: An organisation which is established to serve its members and society or general public by undertaking various activities without any profit motive, is called a ‘Not for Profit’ organisation.
2. Primary Objective: Primary objective is to provide services.
3. Trial Balance: It prepares Receipts and Payments Account.
4. Net Result: It prepares Income and Expenditure A/c to find out net result in the form of deficit or surplus.
5. Accounting Statements: It prepares the following statements: (1) Receipts and Payments Account (2) Income and Expenditure Account and (3) Balance Sheet.
6. Owner’s Fund/ Capital Fund: Capital fund includes accumulated amount of surplus. surp1us shown by Income and Expenditure A/c, Subscriptions, Donations, etc.

Need for Maintaining Books of Accounts and Preparing Final Accounts-

‘Not for Profit’ concern never engages itself in any field of activity where the object of earning profit is present. As ‘Not for Profit’ concern deals with public money (i.e. subscriptions and donations received from its members and general public, grants received from government), it is answerable to society or public. It is required to maintain the various books of accounts for the following reasons :

• To have control over the cash transactions i.e. inflow and outflow of cash.
• To know the sources of funds and its application i.e. different heads of expenditures on which amount is spent.
• To comply with the provisions of laws applicable to such organisation, e.g. co-operative society registered under the Co-operative Society’s Act, is required to follow the provisions to make budget, audit the accounts, maintain books of accounts, etc.
• To find out surplus or deficit of the concern during a particular period.
• To know the financial position and net worth of the concern on a particular day.
• To avoid illegal or wrong practices and misappropriation of funds and assets.

Meaning of Receipts and Payments Account:

An account which is prepared by a ‘Not for Profit’ concern to record summary of all types of cash receipts and cash payments inclusive of bank transactions is called Receipts and Payments Account. It discloses the various sources from which cash comes in and the various ways through which cash goes
out. It is just similar to the cash book maintained by the trading concerns. Like Cash Account, it has two sides, viz. debit side and credit side. On the debit side, all the receipts of cash and on credit side, all disbursements or payments of cash are recorded.

The opening balance of Cash and Bank balance are shown on the debit side of this book. Bank overdraft is shown on the credit side of this book. This book closes with cash balance and bank balance or overdraft at the end of the accounting year. All receipts and expenditures irrespective of their nature i.e. revenue or capital are recorded in this book. Receipts tand payments related to previous year, current year or next year are also recorded in this book.

Features of Receipts and Payments Account-

The features of Receipts and Payments Account are explained as follows :

• Receipts and Payments Account is a Real Account.
• It is similar to Cash Book and gives a summary of cash transactions and bank transactions.
• The receipts and payments of all kinds i.e. revenue as well as capital are recorded in this account.
• The receipts and payments relating to past, current and future accounting years, if received and paid during the current year are recorded in this account.
• It records the amount actually received as well as paid during the current year. However, amount receivable as well as amount payable (outstanding) are not recorded in this account.
• It provides base for preparation of final accounts consisting of Income and Expenditure Account and Balance Sheet of ‘Not for Profit’ concern.
• Opening balances of the Cash and Bank Account are brought down to this account from the last Balance Sheet and the closing balances of these accounts are transferred to the Balance Sheet prepared at the end of that accounting year.
• Accounting items such as Bad debts, R.D.D., Depreciation provided on the fixed assets, etc. are not recorded in this book because they are non-cash items of the business.

Types of Receipts-
Receipts may be of two types viz. (i) Capital Receipts and (ii) Revenue Receipts.

Capital Receipts :
Receipts which are non-recurring in nature and do not form the part of regular flow of business income are called Capital Receipts.
Examples : Sale proceeds of fixed assets, life membership fees, donation received for building construction, etc.
Capital receipts may be either added to capital fund or treated separately on the Liabilities side of the Balance Sheet.

Revenue Receipts :
Receipts which are recurring in nature and also form the part of regular flow of business income are called Revenue Receipts.
Examples : Subscriptions received from members, interest on investments received, rent received, entrance/ admission fees, etc.

Types of Payments-
Payments may be classified into three categories viz. (i) Capital expenditure (ii) Revenue expenditure and (iii) Deferred Revenue expenditure.

Capital Expenditure :
An expenditure which is non-recurring in nature and benefits of which are likely to be received for a long period of time is called Capital expenditure. It is usually spent to increase fixed assets units, to increase earning capacity, efficiency and life span of the fixed assets and to achieve economy of operation of existing fixed assets.
Examples : Amount spent on purchase of land, building, machinery, furniture, etc.

Revenue Expenditure :
An expenditure which is incurred for carrying out day-to-day business activities and maintaining fixed assets in working condition is called Revenue expenditure. It is recurring in nature and benefits of which are enjoyed immediately.
Examples : Amount spent on payment of wages and salaries, rent, taxes, insurance premium, commission, etc.

Deferred Revenue Expenditure :
Expenditure which is basically of revenue nature but benefits of which are received for more than one or more years is called Deferred revenue expenditure.
Example : Advertisement expenditure paid at a stretch for 4 years say ₹ 40,000. In this case, 1/4 of ₹ 40,000 i.e. ₹ 10,000 is required to be written off to Income and Expenditure A/c in the Current year and balance of ₹ 30,000 is required to be shown on the Assets side of Balance Sheet.

Specimen of Receipts and Payments Account-

Meaning of Income and Expenditure Account-

An account which is prepared by the ‘Not for Profit’ concern to record expenses and incomes of revenue nature and to ascertain whether the concern has sufficient incomes to meet its expenses, is called Income and Expenditure Account. It is just similar to the Profit and Loss Account of the trading concerns.

Other Information : In this Account only incomes or gains of revenue nature that too of the current year are recorded on the credit side.

Examples : Subscriptions received, Entrance fees received, Sundry receipts, Donations (General) received, etc.
Please note that revenue incomes pertaining to current year whether actually received or not or received during past year are recorded in this account.
Similarly, in this account only revenue expenditure of current year whether actually paid or not or paid during previous year are recorded on debit side.

Debit balance of Income and Expenditure A/c indicates deficit which is deducted from the Capital fund and Credit balance of Income and Expenditure A/c shows surplus which is added to the Capital fund.
In this account capital receipts and capital expenditure are not recorded. They are directly recorded in the Balance Sheet.

Features of Income and Expenditure Account-

The features of Income and Expenditure Account are explained as follows :

• Income and Expenditure Account is a Nominal Account.
• In this account only revenue expenses and revenue incomes relating to current year are recorded.
• This account is just like Profit and Loss Account. It gives result of the working of the organisation. ‘Not for Profit’ concerns prepare Income and Expenditure Account in place of Profit and Loss
  Account.
• This account is prepared with the primary aim of finding out surplus or deficit of the ‘Not for Profit’ concern over the particular accounting year.
• This account is a part of final accounts of ‘Not for Profit’ concern and hence it is always prepared with Balance Sheet.
• No opening balance is shown in this account.
• At the end of the accounting year, the debit balance of this account shows a deficit and the credit balance of this account indicates a surplus.
• All cash items such as salaries paid, rent paid, etc. as well as non-cash items such as outstanding salaries, bad debts written off, depreciation, provisions for bad debts, discount, etc. are also recorded in this account.

Specimen of Income and Expenditure Account-

Distinction between Receipts and Payments Account and Income and Expenditure Account:

Receipts and Payments Account:

1. Meaning: An account prepared by a Not for Pr’ concern to record the summary of all types of cash receipts and cash payments is called Receipts and Payments account.
2. Nature: It gives the summary of the cash transactions and bank transactions. It is similar to cash book maintained by the trading organisation.
3. Type of Account: Receipts and Payment Account Is a Real Account.
4. Openinng Balance: This account starts with opening cash and bank balances or overdraft.
5. Closinng Balance: Closing difference of this account shows either cash and bank balance or bank overdraft.
6. Period: All cash transactions Irrespective of period of occurrence, if received and paid In the relevant accounting year are recorded.
7. Nature of Items: In this account only cash transactions (items) are recorded.
8. Concerned period: Incomes and expenditures of both capital and revenue nature if received or paid during the current year are recorded in this account.
9. Contaings: In this account, tranšactions relating to all types of accounts viz. Personal Acccount, Real Account and Nominal Account are recorded.
10. Balance Sheet: It Is never accompanied by a Balance Sheet.

Income and Expenditure Account:

1. Meaning: An account prepared by a Not for Profit’ concern to record Its expenses and incomes of revenue nature is called Income and Expenditure account.
2. Nature of Account: It gives the net result of working of the concern. It Is similar to the Profit and Loss Account prepared by the trading concern.
3. Type of Account: Income and Expenditure Account Is a Nominal Account.
4. Openinng Balance: No opening balance Is shown In this account.
5. Closing Balance: Closing difference of this account shows either deficit or surplus.
6. Period: Income and expenses relating to the relevant (current) accounting year only arc recorded.
7. Nature of Items: In this account cash as well as non-cash transactions (Items) are recorded.
8. Concerned Period: Only revenue incomes and expenditure related to current year whether received or not are recorded in this account.
9. Contains: In this account, only transactions relating to Nominal Account are recorded.
10. Balance Sheet: It Is always prepared along with Balance Sheet.

Preparation of Income and Expenditure Account-

Income and Expenditure Account is prepared on the basis of Receipts and Payaments Account and additional information if any. It is a Nominal Account and hence all expenses and losses of revenue nature are debited to this account and all incomes and gains of revenue nature are credited to this account. The method of preparation of Income and Expenditure Account is similar to that of preparation of Profit and Loss Account.

Preparation of Balance Sheet-

Balance Sheet of a Non Trading organisation is similar to Balance sheet of sole trading concern. To get the exact idea of financial position of an organisation on a particular date, Balance sheet is prepared with the capital receipts and capital Expenditures amounts. Generally, excess of Assets over Liabilities is called as capital fund. If ‘Capital Fund’ balance is not known, it can be found out by preparing opening balance sheet.

Specimen of Balance Sheet:

Adjustments-

Adjustments	Accounting treatment in
	Income and Expenditure Account	Balance Sheet
1. Outstanding Expenses	Add to concerned expenses on the debit side.	Show ‘Outstanding Expenses’ on the Liabilities side
2. Prepaid Expenses	Deduct from the related expenses on the debit side.	Show ‘Prepaid Expenses’ on the Assets side.
3. Accured Income	Add to related income on the credit side.	Show ‘Accured Income’ on the Assets side.
4. Income received in advance	Deduct from the related income on the credit side.	Show ‘ Income received in advance ‘ on Liabilities side.
5. Subscriptions received in advance	Deduct the amount of subscriptions received in advance from subscriptions on the credit side.	Show ‘Subscriptions received in advance’ on the Liabilities side of Balance Sheet.
6. Subscriptions outstanding (receivable)	Add the amount of subscriptions outstanding (receivable) to subscriptions on credit side.	Show ‘Subscriptions Outstanding’ (receivable) on the Assets side of Balance Sheet.
7. Depreciation on fixed assets	Show ‘depreciation’ on the debit side.	Deduct ‘depreciation’ from the related fixed asset on the Assets side.
8. Capitalisation of entrance fees	Deduct the amount of capitalisation of entrance fees from entrance fees on credit side.	Add the amount of capitalisation of entrance fees to capital fund on the Liabilities side.
9. Creation of special funds out of donation	Deduct the amount of special funds so created from the donations on credit side.	Show separately special funds so created on the Liabilities side.
10. Closing stock of stationery	Deduct the closing stock of stationery from ‘ Printing and Stationery’ on debit side.	Show ‘stock of stationery’ separately on the Assets side.

Implied Adjustments:

Accounting treatment of the important items-

(1) Capital Fund : The excess of total assets over the total liabilities is called capital fund. Capital fund is recorded on the Liabilities side of Balance Sheet prepared by the ‘Not for Profit’ concern. It is created out of capital incomes and capitalisation of funds or incomes such as donations, entrance fees, admission fees, etc. The surplus shown by the Income and Expenditure Account is added to Capital Fund and deficit if any shown by Income and Expenditure Account is deducted from Capital Fund.

(2) Entrance Fees or Admission Fees : Fees or specific amount received from the new members at the time of their entry into the ‘Not for Profit’ concern are called Entrance fees or Admission fees. It is different from annual subscription received from the members. It is paid by each member only at the time of his admission. Capital fund of ‘Not for Profit’ concern is mainly made of entrance fees received from all the past and present members. Some people argue that entrance fees are capital receipt as it is received only once from each member. It is not recurring in nature. While others have pointed out that entrance fees are revenue receipt because though it is paid only once by each member, it is received regularly by the ‘Not for Profit’ concern.

Note : In the absence of any specific information given in the problem, entrance fees should be treated as revenue receipt. If any specific instruction is given in the problem, entrance fees should be treated accordingly. IJ according to instruction 60% of entrance fees is to be capitalised, then 60 % of entrance fees is to be added to capital fund on Liabilities side of Balance Sheet and remaining 40% of entrance fees is to be credited to the Income and Expenditure Account.

(3) Subscriptions : A payment as a contribution by the members towards some object or service, is called subscription received. It may be a payment or promise of payment for subscription of a magazine, newspaper, book, etc., over a specified period of time. In such a case it is called subscription paid. Subscriptions or fees received from the members constitute the main source of income for a ‘Not for Profit’ concern. All subscriptions received will be recorded on the debit side of Receipts and Payments Account. Out of such subscriptions, subscriptions relating to current accounting year are transferred and recorded on the credit side of the Income and Expenditure Account. It is considered as revenue receipt.

(4) Legacy : Any asset, property or amount of cash which ‘Not for Profit’ concern receives as per the provisions made in the will of the donor on his death is called legacy. As and when cash is received as legacy, it is recorded on the debit side of the Receipts and Payments Account. Since amount received on legacy is not of recurring nature, it is considered as capital receipt. Therefore, it is shown on the Liabilities side of the Balance Sheet.

(5) Life Membership Fees : The member of the ‘Not for Profit’ concern, if wants to become a life member, he is required to pay a lump sum amount of fees to the concern either at the time Of his entry or later. Such amount of fees is called life membership fees. Life membership fees are non-recurring in nature because members are required to pay the fees once in a lifetime and not periodically. Since it is a capital receipt, it is added to the capital fund on the Liabilities side of the Balance Sheet.

(6) Sale of Old Assets * Fixed assets like machinery, furniture, office equipments, etc., are sold by the ‘Not for Profit’ concern when they become old or outdated. Profit or Loss on sale of such assets is ascertained by using the following formulae :

(i) Profit on Sale of old Assets = Sales proceeds – Cost of Sale of old Assets.
(ii) Loss on Sale of old Assets = Cost of Sale of old Assets – Sales proceeds.

Sale proceeds so received are recorded in Receipts and Payments Account on receipts side. If ‘Not for Profit’ concern earn profit on sale of old assets, the amount of such profit, is recorded on the credit side of Income and Expenditure Account. In case there is a loss on sale of old assets, the amount of such loss is debited to Income and Expenditure Account.

(7) Scrap : Small piece of something larger, parts of the outdated machines, waste materials, used articles especially metals, etc. are called scrap. Scrap value refers to the net amount which is realised on the final disposal of scrap. The amount received on sale of scrap is first recorded on the debit side of Receipts and Payments Account. It is treated as miscellaneous income and as such it is credited to Income and Expenditure Account.

(8) Newspapers : Newspapers, periodicals, magazines, etc. are used by the members of the ‘Not for Profit’ concern to update their knowledge. The amount received from the sale of old newspapers, periodicals, magazines, weeklies, etc. is shown on the debit side of the Receipts and Payments Account and then posted on the credit side of the Income and Expenditure Account. It is considered as miscellaneous income.

(9) Specific Donations : Donation i.e., the gift in monetary terms received from the members or outsiders for a specific purpose like donation for building, charity, etc., is called specific donation. Donation received for specific purpose is treated as capital receipt and is added as contribution to specific fund on the Liabilities side of the Balance Sheet. Expenses spent for acquiring such donations are not debited to Income and Expenditure Account, but they are deducted from the amount of such donations only.

(10) Genera! Donations : Donations may be classified as general donations and specific donations. Donations received for general purpose like welfare of members, achieving general aims and objectives of the concern, etc. are called general donations. General donations are treated as revenue receipts as they are expected to be received every year. In case no specific information is given in any problem, donation should be treated as revenue income and accordingly, it should be considered in Income and Expenditure Account as income.

(11) Specific; Fund : Fund created for specific purpose is called specific fund. Specific fund may be created for the construction of building, construction of operation theatre, swimming pool, awarding prizes, etc. If specific fund is created, then all incomes and expenses relating to the specific fund should not be recorded in the Income and Expenditure Account. All incomes relating to specific fund are added to that fund and all the expenses related to it are deducted from that specific fund. The balance of specific fund is shown on the Liabilities side of the Balance Sheet.

(12) Endowment Fund : Fund which is created or raised from bequest (means the thing that is left by a will) or gift, the income of which is used or devoted for a specific purpose is called endowment fund. In other words, fund which provides permanent source of income to the institution is called endowment fund. The amount of such fund is invested in the government or non-government securities to create a source of regular income. The amount of income or interest received from the investment of endowment fund is used for a specific purpose, e.g., distribution of prizes to the meritorious students in the society, etc. An amount received for endowment fund is considered as capital receipt because such fund provides permanent source of income to the ‘Not for Profit’ concern. It appears on the receipts side or debit side of the Receipts and Payments Account. It is shown separately on the Liabilities side of the Balance Sheet. The amount of income or interest received from the investment of endowment fund is not credited to Income and Expenditure Account but to be added to endowment fund. Similarly all expenses relating to endowment fund are to be deducted from the amount of such fund.

By going through these Maharashtra State Board Book Keeping & Accountancy Notes 12th Chapter 1 Introduction to Partnership and Partnership Final Accounts students can recall all the concepts quickly.

Maharashtra State Board 12th Accounts Notes Chapter 1 Introduction to Partnership and Partnership Final Accounts

Introduction, Meaning and Definition of Partnership-

Introduction : When development of single ownership firm takes place or when expansion of the business is planned then naturally, third party help is mandatory. The partnership firm is emerged from capital and managerial limitations of single ownership firms. Hence, when two or more persons, competent to enter into a contract, make an agreement, contribute required capital, undertake certain lawful business for earning profit and sharing the same in agreed proportion, then such union is termed as ‘Partnership’.
The persons who have entered into partnership are individually known as ‘Partner’ and collectively known as a ‘Firm’.

Meaning : Partnership is a business organization, where more than one person come together, make an agreement, contribute capital to carry on a lawful business with the primary objective of earning profit.

Definition : Section 4 of the Indian Partnership Act. 1932 defines a partnership as, “The relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all. ”

Prof. Haney defines partnership as, “The relation existing between persons competent to make contract who agree to carry on a lawful business in common with a view to earn private gain. ”

Features of partnership firm : The main features of partnership firm are stated below :

(1) Agreement: Foundation of partnership is agreement. Agreement may be either in oral or in written form. Written form of agreement is advisable because it can be used as a proof in the court of law, in case of any future disputes. The written agreement is termed as partnership deed.

(2) Number of partners : Minimum two persons are required to form the partnership firm. According to the Companies Act 2013, maximum number of partners is fifty.

(3) Lawful business : The business undertaken by partnership, must be lawful. It cannot undertake illegal activities or business not permitted by law.

(4) Sharing of profit and losses : Main objective of partnership is to earn maximum profits, and distribute it among the partners in agreed proportion. Profit or loss is to be shared equally among the partners if the agreement is silent on ratio.

(5) Unlimited liability : The liability of all partners except minor partner is unlimited. The creditors can claim and recover their dues from the private property of partners, if business property is not sufficient to settle their claims. If any partner is declared insolvent, then his liability is to be borne by the solvent partner.

(6) Registration : According to the Indian Partnership Act 1932, registration of partnership firm
is optional. However, registration of partnership firm is made compulsory only in the state of Maharashtra. Registration means entering the name of partnership firm in the register maintained by the Registrar after the completion of required formalities.

(7) Joint ownership and management : Each partner is joint owner of the property of the firm. So any partner of the firm cannot use property of firm for personal use. Each partner has right to participate in the management of a firm, so all the partners are jointly responsible for all the activities of the firm.

(8) Principal and Agent : Partners carrying on business, works as a Principal and Agent. A partner
act as a principal of the firm for business concerned persons or outsiders and act as a partner with other partners of a firm.

(9) Dissolution : Dissolution of firm means closure of business of the firm. Dissolution of partnership firm is simple and easy. Any one of the partners can take active part to dissolve the firm by giving fourteen days notice. Unless there is an agreement, partnership gets dissolved on death, retirement or insolvency of a partner.

Partnership Deed : A partnership is contractual relationship. Agreement may be oral or written. An agreement which is written and signed by all the partners is called Partnership Deed. It contains terms and conditions of partnership and also rules relating to internal management of the firm.

The usual contents of a partnership deed are : (1) Name and address, Telephone nos., e-mail address of the firm and its main business. (2) Name, addresses and other information of all partners and duration of the partnership. (3) The amount of capital contributed or to be contributed by each of the partners. (4) The profit and loss sharing ratio of the partners. (5) Rights, duties and liabilities of all partners. (6) Provisions for admission, retirement and death of partner. (7) Rate of interest on capital, loan and drawings, if any. (8) Salaries, commission, etc. payable to partners or any partner. (9) Procedure for dissolution of the firm and settlement of accounts after dissolution.

(10) The methods of settlement of disputes among the partners. (11) Other terms and conditions relating to the conduct of business which are agreed by all the partners.

Importance of Partnership Deed : As partnership deed contains all the terms and conditions of partnership and haying bases of mutual relationship among the partners, it is known as a very important document. With the help of partnership deed, rights, duties and liabilities of all partners and firm can be regulated. To avoid any disputes in future, Partnership Deed duly signed by all the partners and registered under the Indian Partnership Act 1932 is always advisable.

The Indian Partnership Act 1932-

At the time of commencement of partnership, partnership deed is prepared which contains all the required terms and conditions of Partnership. However, if there is no agreement, written or oral, and if partnership deed is silent about any issue among the partners, provisions of the Indian Partnership Act 1932, section 12 and 17 are made applicable, which are as follows :

(1) Distribution of Profits : In the absence of partnership deed or if partnership deed is silent about profit and loss ratio, profits or losses are to be shared equally among the partners.

(2) Interest on Drawings : As per the provisions of the Indian Partnership Act 1932, no interest is to be charged on drawings made by the partners. If provisions are made in the partnership deed in respect to payment of interest on drawings, then interest on drawings is charged. If the date of withdrawal of money is not given, then interest on drawings is charged for average period of 6 months.

(3) Interest on Partner’s Loan : As per the provisions of the Indian Partnership Act, 1932, if any partner has advanced loan to the firm over and above his capital contribution, such a loan is to carry interest @ 6 % per annum. However, if any provision is made In the partnership deed In respect to payment of interest on loan given by a partner to partnership, then interest is paid on such loan at the specified rate.

(4) Interest on Capital : As per the provisions of the Indian Partnership Act, 1932 no partner is entitled to receive any interest on his capital contribution. However, if provisions are made in the partnership deed in respect to payment of interest on capital, then partners are entitled to receive interest on their capital contributions as per the rate of interest mentioned in the agreement.

(5) Salary or Commission to Partners : As per the provisions made in the Indian Partnership Act,
1932, no salary, commission, allowance or any remuneration is to be given to any of the partners for any extra work done by partners for the firm. However, if any provision is made in partnership deed, then partners are entitled to get commission or salary as per the agreement.

(6) Admission of a new Partner : As per the provisions of the Indian Partnership Act, 1932, no outside person can be admitted into the firm as a partner without the consent of all partners.

Methods of Capital Accounts-

Amount in cash or in kind brought in by the partner to manage business activities is called Capital. The capital contribution may be in the form of cash or in the form of assets other than cash, e.g. Goods, Machinery, Land, Buildings, Furniture, etc. An amount of capital may be either in their : profit sharing ratio or in equal ratio. Such amount of capital may be in any proportion as per the mutual understanding of the partners. There are two methods of maintaining the capital accounts of the partners, viz. (1) Fixed Capital Method and (2) Fluctuating Capital Method.

The Indian Partnership Act, 1932 is silent on the point of adoption of specific method of capital by the Partnership firm. The partners themselves may decide which method of capital is to be followed and mention the method of capital adopted in the partnership deed. If partnership deed is silent on
this point, then the partnership firm has to adopt Fluctuating Capital Method.

Fixed Capital Method : Under this capital method opening balance of capital of a partner remains same upto at the end of that financial year. These capital balances will change only when partner introduces an additional capital or withdraws a part of his capital from the firm. Under Fixed Capital Method, along with capital account, a separate personal account, called Current Account is also opened and operated for every partner to record other dealings of partner with the partnership firm.

(i) Partner’s Capital Account: In this account the entries for the following transactions are recorded :

• Amount contributed by the partner in the beginning or opening balance of capital if the partnership firm is already established its business.
• Additional capital if any introduced by the partner during the accounting year.
• Part of the capital withdrawn by the partner during the accounting year.

Usually Partner’s Capital Account shows credit balance and it is shown on the Liabilities side of Balance Sheet.

Pro forma of Partners’ Capital Accounts : The pro forma of Partners’ Capital Accounts prepared under Fixed Capital Method is shown below : It is assumed that there are two partners, viz. X and Y.

Journal Entries:

(1) When cash is brought In the firm by the partner as additional capital:

(2) When additional capital is introduced in the firm by the partner in the form of Assets:

(3) When part of the capital is withdrawn by the partner:

(ii) Partners’ Current Accounts : If Fixed Capital Method is adopted by the firm, then Current Account for each partner is opened and operated. In Current Account, following transactions are recorded :

• Drawings (if any) made by the partner in the current accounting year.
• Cash or goods or any other asset taken over by the partner.
• Interest on Partners’ Capital allowed by the firm.
• Interest on Partner’s Drawings charged by the firm.
• Salary, commission, rent, interest on loan, allowance, etc. payable to the partner.
• Distribution of net profit or net loss of the firm.

Pro forma of Partners’ Current Accounts : The pro forma of Partners’ Current Accounts prepared under Fixed Method is shown below : in the following pro forma ledger accounts, it is assumed that X’s Current A/c showed a credit balance and Y’s Current A/c showed a debit balance at the beginning of the year.

Journal Entries :

(1) Interest allowed on Partners’ capital :

(2) Salary/Commission allowed to Partners :

(3) Cash/Goods withdrawn by the partners from the business for their personal use :

(4) Interest charged on Partners’ Drawings :

(5) Division or distribution of net divisible profit or loss :

Partners’ Current Accounts may either show debit balance or credit balance. Credit balances of Partners’ Current Accounts are transferred to Liabilities side of Balance Sheet. Similarly, debit balances of Partners’ Current Accounts are transferred to Assets side of Balance Sheet.
Effects of above entries in Profit and Loss A/c is as follow :

Pro forma of Profit and Loss Account :

Fluctuating Capital Method : In the Fluctuating Capital method, balances on capital accounts changes every year. Under this method, to record partners dealings with partnership firm, only one account ‘Capital Account’ is opened and following transactions are recorded in it:

• Initial or opening balances of capital
• Additional capital brought in by partners in form of cash or its kind (Assets)
• Salary/Commission payable to partners
• Interest payable on capital balance to partners
• Drawings made during the year and interest payable on drawings by the partners
• Withdrawal of part of the capital by the partners
• Division and transfer of net divisible profit or net adjustable loss of the firm.

The credit balances of fluctuating capital accounts of the partners are recorded separately on the Liabilities side of the Balance Sheet.

Pro forma under Fluctuating Capital Method :

By going through these Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 2 Functions of Management students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 12th Notes Chapter 2 Functions of Management

→ Budget : Plan expressed in financial terms; a summary of planned financial expenditures and receipts over a period or related to an activity.

→ Strategies : A plan or method for achieving a business goal; a general method or policy for achieving specific objectives of the business.

→ Environment ; The factors which affect surroundings of anything including human beings as well as organisations.

→ Evaluate : To determine the value, progress, quality or importance of anything.

→ Missions : Specific goals or important tasks that one has to achieve or perform in a given period of time.

→ Innovative ideas : Ideas which lead to discover or creation of something new.

→ Delegation of authority : Transferring or giving away authority and corresponding responsibility by a superior to a trusted subordinate to manage part of the business.

→ Administration : The control, direction and management of a business or service.

→ Plant : Plant is an industrial establishment that is either a factory, a mill or a workshop concerned with some type of operations. It refers to a place where large machinery is installed and goods are produced or from where distribution of goods takes place.

→ Recruitment : The process of searching for prospective employees and encouraging them to apply for jobs in an organisation. It involves detailed and systematic study of manpower requirements, both operative and executive.

→ Personnel department : This is a department of the organisation that is primarily concerned with the management of human relationships within an organisation. It deals with the organising and training of people at work.

→ Orientation and development programmes : An introductory stage in the process of new employee assimilation and a part of his or her continuous socialisation process in an organisation. Major objective of orientation are to gain employee commitment, reduce his or her anxiety, help him or her understanding organisation’s expectations and convey what he or she can expect from the job and the organisation.

→ Eco-friendly : Eco-friendly literally means earth-friendly or not harmful to the environment. This term most commonly refers to products that contribute to green living or practices that help conserve resources like water and energy.

→ Corporate culture : The beliefs and behaviours that determine how a company’s employees and management interact and handle outside business transactions. A company’s culture will be reflected in its dress code, business hours, office set up, employee benefits, hiring decisions, treatment of clients and their satisfaction and every other aspect of operations.

→ Corporate image : The way an organisation is presented to or perceived by its members and the public; the impression of the policies, personnel and operations of a corporation that is imparted to its employees and the general public.

→ Hierarchy : It is a structure of organisation where there are positions created from top to bottom to monitor the work at each level with ease.

→ Motivation : The material and psychological incentives provided by the management to the employees so that they are motivated to accept the delegated responsibility.

→ Synchronise : To cause to move at the same rate or exactly together.

→ Deviation : Behaviour that differs or departs from what is thought of as normal or standard.

→ Break-even analysis : Computing costs and revenues for different volumes of production in order to determine a point after which an enterprise starts earning profit.

→ Efficiency : Ability of producing and functioning effectively with the least waste of efforts, time, cost, etc.

Introduction-

The success of every business organisation is how effective and efficient is its management. Management is a set of principles which is the result of many functions, such as planning, organising, staffing, directing, coordinating, controlling, etc.

Functions of Management-

According to L. A. Allen, ‘Management is what manager does.’ So the function of manager starts with planning and completes with controlling. Luther Gullick give a keyword ‘POSDCORB’ for management. P = planning, O = Organising, S = Staffing, D = directing, Co = Co-ordinating, R = Reporting, B = Budgeting.

Planning –

Meaning :
Planning means deciding in advance what to do, when to do it, how to do it, where to do it j I and who is to do it. It involves selecting missions and objectives and the actions to achieve them. It is an intellectual process of logical thinking and rational decision-making.

Definition : According to James Stoner, “Planning is the process of establishing goals and a suitable course of action for achieving those goals.”

Importance :

• Helps to set clear objectives : Planning is straight way connected with setting clear objectives, targets and making road rfiaps to achieve them.
• Provides path of action : Planning provides guidelines and directions in doing the right things in the right direction and in the right way.
• Improves performance : Due to proper planning, the employees work with established objectives and a clear course of action. It results in improvement of performance and achieving higher profit for the organisation.
• Minimises the risk : Proper planning helps to deal with changes and uncertainties of future. It can be tackled with preventive measure.
• Leads to optimum utilisation of resources : Planning facilitates optimum utilisation of resources which brings higher efficiency and better results. Planning reduces ‘ wastage of resources.
• elps in decision making : Decisions are taken after selecting best available alternative course of action. It helps management to take rational decision.
• Useful in setting the standards for controlling : Actual performance can be measured with what was planned and any deviation can be bridged by taking controlling steps. Thus, it is important to maintain I discipline at work place.
• Facilitates co-ordination of all activities : All activities in organisation are j inter-linked and with the help of proper planning it avoids overlapping among activities. Various departments work as per the plan which creates ; smooth flow of hassle-free co-ordination.
• Facilitates other management functions : Planning is the basis of all functions of management. Once the proper planning is done and goal is set, functions like organising, staffing, etc. can be done.
• Promotes innovative ideas : It is the most challenging activity and promotes innovative ideas as an outcome of critical thinking.

Organising-

Meaning : Organising implies the process of identifying, assembling the needed resources men, money, machine an method, grouping and arranging them in proper manner to achieve organisational goals. .
For the execution of the plans, organising is more important. Organising function decides the ways and means to achieve that is planned by the management.

Definition : According to Mooney and Railey, “Organization is the form of every human association for the attainment of a common purpose

Importance of Organising :

• Facilitates Administration as well as operation : Grouping and assigning the activities is the task of administration and processing accordingly is operational activity. Duplication of work and wastages are minimised and it helps in effective delegation of work.
• Brings specialisation : The division of work helps in bringing specialisation and leads to increased efficiency in an organisation.
• Defines the job properly : Organising helps in putting right men on right job according to their qualification, skill and experience. It defines job properly with clarify of roles and responsibilities.
• Clarifies authority and responsibility : Organisational structure clarifies the way to exercise the power so that misuse of power is controlled. This results in efficiency and increases productivity of the managers.
• Establishes co-ordination : Organising ensures mutual co-operation among various departments and employees. It establishes smooth co-ordination of all organisational activities.
• Helps in effective administration : Proper organisational structure with right men at right place with proper delegation of authority and responsibilities leads to efficient and effective administration.
• Helpful for growth and development : Clearly defined roles and responsibilities, co¬ordination with appropriate control techniques ensures growth and development in every organisation. It is possible when the organisational structure is well-defined.
• Creates sense of security : Organising defines clear job profile with proper authority and responsibility. It brings mental satisfaction and creates sense of job security among the employees.
• Scope for innovation : Clarity in job profile, roles and responsibilities provide enough space for manager to develop talent and encourage innovation when the organisational structure is well-defined.
• Helps in Optimum utilization of resources : Different jobs for different employees brings specialisation and the right workforce utilizes resources at its optimum level. This achieves the desired result in desired time.

Staffing-

Meaning : Staffing is a process through which competent employees are selected, recruited properly trained, effectively developed and placed and suitably rewarded. Their efforts are harmoniously integrated towards achieving the objectives of an organisation. It is the function of execution. Right person at right job with right pay in the basic principle of staffing.

Definition : According to Theo Haiman, “The staffing Junction pertains to the recruitment, selection, development, training and compensation of subordinate managers.”

Importance :

• Effective managerial function : Staffing is the key managerial function as the outcome of other managerial functions is based on the effectiveness of staffing.
• Leads to effective utilization of human resources : Staffing function takes proper care at every stage such as recruitment, selection, placement, remuneration, training, etc. It results in improvement in performances and progress – of organisation.
• Builds cordial relationship : Effective staffing encourages smooth human relation which is the key to better communication and co-ordination in an organisation.
• Helps human resource development : Staffing function trains and develops the existing workforce. It helps to inculcate the organisational culture into employees and ensures smooth functioning of all managerial aspects.
• Helps in effective use of technology and other resources : Use of latest technology, capital, material and methods helps in improving standard of work and productivity in terms of quality and quantity.
• Improves efficiency : Proper selection and proper training, the performance level of employees can be improved which leads to the efficiency and organisational development.
• Long term effect : Staffing function has long term effects on the efficiency of an organisation. Qualified, efficient and well motivated workforce is an asset of the organisation.
• Essential contribution : Selection of staff is based on the ability of prospective employees to meet the future challenges of an organisation. It contributes for future changes and challenges.
• Provides job satisfaction : Adequate remuneration, financial and non-financial incentives, training and development programmes motivate employees. It leads to job satisfaction.
• Maintains harmony : Proper staffing process ensures regular appraisal and promotion on merit basis. Effective communication for the same brings peace and harmony in an organisation.

Directing-

Meaning : Directing as a management function is concerned with instructing, guiding, communicating, inspiring and motivating the. employees so that their efforts result in the achievement of pre- determined organisational goals. It is a continuous function which flows from top level to the lower level of organisation.

Definition : According to Theo Haiman, “Directing consists of the process and techniques utilising in issuing instructions and making certain that operations are carried out as planned.”

Importance :

• Initiates action : The manager gives direction to subordinates about what to do. how to do and when to do and sees that his instructions are properly followed.
• Integrates efforts : Effective direction with proper communication helps in integrating the efforts of all the employees and departments. It results in achievement of organisational goals.
• Means of motivation : Financial and non-financial incentives boost morale of the employees. Considering their opinion motivates employees to work to their full potential and improves their performance.
• Provides stability : Effective leadership and direction develops co-operation and commitment among the employees. This provides stability and creates balance among various departments and groups.
• Coping up with changes : With the right leadership and direction, employees are motivated to understand the nature of change in business environment. Adapting to changes is necessary for the growth of an organisation.
• Effective utilization of resources : With the help of directing, employees are assigned with duties and responsibilities with proper instruction to avoid wastages. It helps them to use men, materials, machines, money in best possible way which in turn helps to reduce the cost and increase profit.
• Creates team spirit: Directing focuses or motivating the subordinates for group efforts. The manager as a director plays a vital role in guiding and motivating the employees to achieve the organisational goals with team spirit.
• Explores capabilities of individuals : Direction helps employees to identify their potentials, abilities for best performance by encouraging and motivating them like a leader.
• Increases efficiency level : Guidance and motivation of a director as a leader develops team spirit in the organisation. It results into increase in the efficiency level of the whole organisation.
• Co-operation : Proper direction from top level to the bottom level of management ensures smooth flow of co-operation, team work and efficiency level which leads to attainment of goals.

Co-ordination-

Meaning : Co-ordination means the integration and synchronisation of group efforts to achieve all goals of an organisation. Co¬ordination between all functions and all levels of employees is most important for an organisation to succeed. It binds all the other functions of management.

Definition : According to Henry Fayol, “to co-ordinate is to harmonise all the activities of a concern to facilitate its working and its success.”

Importance :

• Encourages team spirit : Co-ordination helps in arranging the work in such a way that minimum conflicts arise between all. It increases the team spirit at work place.
• Gives proper direction : Co-ordination integrates departmental activities and interdependence on each other in a very systematic way.
• Facilitates motivation : An effective co¬ordination motivates employees to take initiative which increases efficiency growth and prosperity of the organisation. Monetary and non-monetary incentives motivates an employee to work hard and job security.
• Optimum utilization of resources : Co¬ordination helps to integrate all available resources systematically and ensures minimum wastage. It helps to control the cost of work.
• Achieve organisational objectives : Co¬ordination leads to minimum wastages of materials, idle time of employees, department disputes and ensures smooth working in the process of achieving organisational goals.
• Improves relations : Co-ordination develops cordial relations between all levels of management as every department depends on functioning of other department.
• Leads to higher efficiency: With the help of optimum utilization of resources with effective integration, the organisation can achieve higher productivity and higher profitability.
• Improves Goodwill : Synchronized efforts of employees with strong human relations results in higher sales and higher profitability.
  It directly results in goodwill in the market and creates good images in society.
• Unity of direction : Co-ordination harmonizes activities of all departments for achieving common goal by giving proper j direction to all departments of the organisation.
• Specialisation : The specialised knowledge of all expert department heads in their respective fields leads the organisation towards growth and success in the competitive business world.

Controlling –

Meaning : Controlling means the function of comparing the actual performance with the pres determined standard performance. Due to this, it identifies the causes of deviation, provides \ corrective measures and helps in formulating future plans of an organisation.

Definition : According to Philip Hotter, Control is the process of taking steps to bring actual results and desired results closer together”.

Importance of Controlling :

• Fulfilling goals of organisation : The main function of controlling is to measure the performance at every stage and take corrective, action if necessary. So, it helps to fulfil the organisational goals.
• Making efficient utilization of resources : Controlling techniques sets standard of every performance to reduce the wastages and every employee has to follow these standards. This will lead to efficient utilization of resources.
• Accuracy of standards : An efficient control system helps management in judging the accuracy of standards. They are revised from time to time which is beneficial for checking performances accurately.
• Motivates employees : The advance intimation of standard of performance gives an idea to employee about what to do and how to do. Their performances are rewarded with bonus and other incentives which motivates employees to perform at their best level.
• Ensures order and discipline : Continuous checking of performance by superiors and preventive action leads to reducing of unprofessional behaviour of employees. It brings order and discipline in organisation.
• Facilitates Co-ordination : Control is a function in which the roles and responsibilities of all departmental manager and their sub¬ordinates are well-defined. Controlling helps to use remedial measures to derive result of the organisation.
• Psychological Pressure : This psychological pressure that their performance will be evaluated and will be rewarded accordingly works as a motivational factor for employees. So they give their best performance.
• Ensures organisational efficiency and effectiveness : Factors of control makes managers responsible and motivate them for higher and better performance which leads to organisational efficiency and effectiveness.
• Builds good corporate image : Proper control helps to improve overall performance of the organisation and results in progress of business. This builds a good corporate image and goodwill for the business.
• Acts as a guide: Controlling function sets the standard of performance and managers as well as subordinates take the help of these standards and achieve the desired results.

By going through these Maharashtra State Board 12th Science Chemistry Notes Chapter 10 Halogen Derivatives students can recall all the concepts quickly.

Maharashtra State Board 12th Chemistry Notes Chapter 10 Halogen Derivatives

Classification of Halogen derivatives –

Halogen derivatives:

1. Haloalkanes
2. Haloalkenes
3. Haloalkynes
4. Haloarenes

Halogen derivatives:

• Monohalogen compounds
• Dihalogen compounds
• Trihalogen compounds

Alkyl halides or Haloalkanes:

1. Primary alkyl halide
2. Secondary alkyl halide
3. Tertiary alkyl halide

Alkyl halides (Based on halogen atom bonded to sp³, sp² and sp hybridised carbon):

• Allylic halide
• Benzylic halide
• Vinylic halides
• Haloalkyne
• Aryl halides

Preparation and Reactions of alkyl halides :

Preparation of haloarenes :

Reactions of chlorobenzene:

Uses and environmental effects :

1. Dichloromethane (CH₂C₁₂)
2. Chloroform (CHCl₃)
3. Carbon tetrachloride (CCl₄)
4. Iodoform (CHI₃)
5. Freons (CCl₂F₂)
6. Dichlorodiphenyltrichloroethane (DDT)

By going through these Maharashtra State Board 12th Science Biology Notes Chapter 4 Molecular Basis of Inheritance students can recall all the concepts quickly.

Maharashtra State Board 12th Biology Notes Chapter 4 Molecular Basis of Inheritance

The Discovery of DNA-

1. Nuclein:

• Isolated by Friedrich Miescher, in 1869, from the nuclei of pus cells.
• It is an acidic substance with high phosphorus content.

2. There are two types of nucleic acids – DNA  (deoxyribonucleic acid) and RNA (ribonucleic : acid).

The Genetic Material is a DNA-

1. Initially proteins (and not DNA) were ; considered as genetic material because :

• Proteins are large, complex molecules and store information required to govern cell metabolism. Hence, it was assumed that variations found in species were caused by proteins.
• DNA was considered as a small, simple : molecule whose composition varies little ; among species.
• Variations in the DNA molecules are different j than the variation in shape, electrical charge J and function shown by proteins.

2. Various experiments which proved that DNA (and not protein) was the genetic material are as follows :

A. Griffith’s experiments :

• In 1928, Frederick Griffith, carried out an experiment with two strains of bacterium Streptococcus pneumoniae: S-type (Virulent, smooth, pathogenic and encapsulated) and R-type (Non-virulent, rough, non-pathogenic and non-capsulated).
• He observed that on injecting a mixture of heat-killed S bacteria and live R bacteria, the mice died.
• Griffith obtained live S-strain bacteria from the blood of the dead mice.
• Conclusion: Live R-strain bacteria must have picked up something (transforming principle) from the heat-killed S bacterium and got transformed into S-type.

B. Avery, McCarty and MacLeod’s experiment:

• Purified DNA, RNA, proteins, etc. from heat killed cells of S-strain and mixed with R-strain bacteria separately.
• Only DNA was able to transform avirulent R-strain into virulent S-strain.
• When DNA was digested with DNase, there was no transformation.
• Thus, in 1944, they proved that the DNA is a genetic material (transforming principle), but all biologists were not convinced.

C. Hershey-Chase Experiment :

• Hershey and Chase worked with bacteriophages.
• TWo types of bacteriophages were used in the experiment – type one where DNA was labelled with radioactive phosphorus and type two where protein coat was labelled with radioactive sulphur.
• Steps : infection, blending, centrifugation.
• Experiment proved that DNA is the genetic material which enters bacterial cell and not protein.

DNA packaging-

A. Packaging in Prokaryotes :

• E. coli cell size : 2-3μ.
• The nucleoid : Small, circular, highly folded, naked DNA (1100μm long in perimeter, contains about 4.6 million base pairs), nuclear membrane, nucleolus are absent.
• Negatively charged circular DNA (350 μm in diameter).
• Folding / looping : Size reduction to 30 μm in diameter.
• Coiling and supercoiling of each domain : Size reduction to 2μ in diameter.
• Positively charged HU (Histone like DNA binding proteins) proteins : Assist in coiling.
• DNA gyrase and DNA topoisomerase I : Maintain super coiled state.

B. Packaging in Eukaryotes :

• Presence of nuclear membrane, nucleolus and thread-like chromosomes.
• To accommodate long DNA molecule (2.2 m in a typical mammalian cell) in such a small nucleus (10^-6 m), it is condensed, coiled and supercoiled.
• R. Kornberg in 1974 reported that DNA is associated with histone and non-histone proteins in the chromosomes.
• Histones: A set of positively charged, basic proteins, rich in basic amino acid residues lysine and arginine.
• Nucleosome: Consists of nucleosome core (two molecules of each of histone proteins viz. H₂A, H₂B, H₃ and H₄ forming histone octamer) and negatively charged DNA (146 bps) that wraps around the histone octamer by 1 3/4 turns.
• H₁ protein binds the DNA thread where it enters and leaves the nucleosome.
• Adjacent nucleosomes are linked with linker DNA (varies in length from 8 to 114 bp, average length of linker DNA is about 54 bp). [Note : Technically nucleosome includes nucleosome core, DNA wrapped around it (146 bp) and one adjacent linker DNA (54 bp), thus, each nucleosome contains 200 bp of DNA.]
• Packaging involves formation of – Beads on string, Solenoid fibre (looks like coiled telephone wire, 30 nm diameter/300 Å), Chromatin fibre and Chromosome.
• Non-Histone Chromosomal Proteins (NHC) : Additional sets of proteins that contribute to the packaging of chromatin at a higher level.

C. Heterochromatin and Euchromatin :

1. Heterochromatin :

• This term was proposed by Heitz.
• Genetically (transcriptionally) almost inactive, darkly stained, condensed parts of chromonema/chromosomes observed in eukaryotic cells, during interphase and early prophase.
• Located near centromere, telomeres are also interrelated.
• Heterochromatin is 2 to 3 times richer in DNA than in the euchromatin.

2. Euchromatin : Genetically (transcriptionally) . active, lightly stained, fast replicating regions of chromonema which are in non-condensed state.

DNA Replication-

1. Functions of DNA :

• Regulates and controls all the cellular activities.
• DNA replicates and gets distributed equally to the daughter cells when the cell divides.
• Carrier of genetic information.
• Heterocatalytic function : Directs the synthesis of chemical molecules other than itself. E.g. Synthesis of RNA (transcription), synthesis of protein (Translation), etc.
• Autocatalytic function : Directs the synthesis of DNA itself. E.g. Replication.
• A master molecule of a cell that initiates, guides, regulates and controls the process of protein synthesis.

2. Replication is the process by which DNA duplicates itself and forms two copies that are identical to it.
3. In eukaryotes, replication of DNA occurs once, in the S-phase of interphase.
4. The steps involved in DNA replication :

• Activation of Nucleotides
• Point of Origin or Initiation point
• Unwinding of DNA molecule
• Formation of Y-shaped replicating fork
• Synthesis of new strands
• Leading and Lagging strand
• Formation of daughter DNA molecules

5. Enzymes and proteins involved in DNA replication :

• Phosphorylase
• Helicase
• Single strand binding proteins (SSBP)
• Primase
• DNA polymerase
• DNA ligase
• Super-helix relaxing enzyme
• DNA gyrase (Topoisomerase)

6. Semiconservative replication : In each daughter DNA molecule, one strand is parental and the other one is newly synthesized. Thus, 50% mother DNA is conserved.
7. Experimental confirmation of semiconservative DNA replication : Given by Matthew Meselson and Franklin Stahl (1958). They used light and heavy isotopes of nitrogen and equilibrium-density-gradient-centrifugation technique.

Protein synthesis-

1. Central Dogma :

(1) Postulated by F.H.C. Crick in 1958.

Transcription Translation
(2) In eukaryotes, DNA transcription takes place in nucleus and translation occurs in cytoplasm. In prokaryotes, both the processes occur in cytoplasm.
(3) Central dogma in retroviruses : Temin (1970) and Baltimore (1970)

2. Transcription :

(1) Transcription is the process of copying of genetic information from one (template) strand of DNA into a complementary single stranded RNA transcript.
(2) Occurs in the nucleus during Gx and G2 phases of cell cycle.

(3) Catalyzed by RNA polymerase :
(i) Prokaryotes : One type of RNA polymerase.
(ii) Eukaryotes :

• RNA polymerase-I : Transcription of r-RNA.
• RNA polymerase-II : Transcription of m-RNA and heterogeneous nuclear- RNA (or hnRNA).
• RNA polymerase-III : Transcription of t-RNA and small nuclear-RNA (snRNA).

(4) Transcription Unit: Transcription unit (Each transcribed segment of DNA) consists of the promoter, the structural gene and the terminator.

(i) The promoter :

• Located towards 5′ end of structural gene, i.e. upstream.
• Provides binding site for enzyme RNA polymerase.

(ii) Structural genes :

• Template strand : DNA strand having 3′->5′ polarity.
• Sense strand : The other strand of DNA having 5′->3′ polarity.

(iii) The terminator :

• Located at 3′ end of coding strand, i.e. downstream.
• Defines the end of the transcription process.

(5) Three stages of transcription : Initiation, Elongation and Termination.
(6) Transcription unit and the gene :

• Gene : The DNA sequence coding for m-RNA/t-RNA or r-RNA.
• Cistron : A segment of DNA coding for a polypeptide.
• Monocistronic gene : A single structural gene in transcription unit.
• Polycistronic gene : One transcription unit having a set of various structural genes.
• Interrupted genes (Split genes) :
  Structural genes with both exons and introns).
  • Exons : The coding sequences or express sequences.
  • Introns : The non-coding sequences.
  • Only exons appear in processed m-RNA in eukaryotes.
• In bacteria. m-RNA does not require any processing because it has no introns.

(7) Processing of hnRNA :

• Primary transcript or hnRNA is non¬functional and contains both exons and introns.
• Processing of hnRNA results in functional m-RNA.
• hnRNA undergoes capping, tailing and splicing.
  • Capping : Methylated guanosine tri¬phosphate is added to 5′ end of hnRNA.
  • Tailing : Polyadenylation take place at 3′ end.
  • Splicing : Removal of introns.
• DNA ligase joins exons in a definite sequence (order).
• The fully processed hnRNA is called m-RNA.

(8) Genetic Code :

• Yanofski and Sarabhai (1964) : Provided evidence that DNA carries the information for the protein synthesis as the sequence of nucleotides.
• F.H.C. Crick : According to Crick the information for protein synthesis is stored in the form of coded language (cryptogram) called genetic code. He gave evidence for the triplet nature of genetic code, by using “frame-shift mutation”.
• G. Gamow (1954) : Suggested that codon is a sequence of three consecutive nucleotides on m-RNA.
• Cracking of genetic code : M. Nirenberg, Matthaei, Ochoa and Har Gobind Khorana : Deciphered complete genetic code by using artificial m-RNA templates (homopolymers and copolymers) and cell free system of protein synthesis. Synthesized artificial poly-U RNA.

(a) M. Nirenberg and Matthaei : Synthesis of poly-U, m-RNA and polypeptide that consisted of only phenylalanine.
(b) Har Gobind Khorana : Devised a technique for synthesis of artificial m-RNA with repeated sequences of known nucleotides.
(c) Severo Ochoa : The enzyme polynucleotide phosphorylase polymerizes RNA with defined sequences in a template-independent manner (i.e. enzymatic synthesis of RNA).

(9) Replication and transcription are based on complementarity principle.
(10) During translation, complementarity principle is not applicable as, genetic information is transferred from a polymer of nucleotides to a polymer of amino acids.

(11) Characteristics of Genetic code :

• Triplet code : Codon (sequence of three consecutive nucleotides), specifies one particular amino acid.
• Polarity : Genetic code is always read in 5′ -» 3′ direction.
• Non-overlapping code : Each single nucleotide is a part of only one codon.
• Commaless : There is no gap between successive codons.
• Degeneracy of genetic code : Two or more codons can specify the same amino acid. E.g. Cysteine has two codons, while isoleucin has three codons.
  Degeneracy of the code is explained by Wobble hypothesis.
• Universal code : In all living organisms the specific codon specifies same amino acid. E.g. codon AUG always specifies amino acid methionine.
• Non-ambiguous code : Each codon specifies a particular amino acid.
• Initiation codon : AUG, Codes for amino acid methionine.
• Termination codons : UAA, UAG and UGA : They do not code for any amino acid. They stop the process of elongation of polypeptide chain.
• Codon : A triplet of nucleotides present on DNA that codes for specific amino acid. E.g. AUG is codon.
• Anticodon : Triplet of nucleotides present on the anticodon loop of t-RNA, which is complementary to codon on m-RNA.
• Wobble hypothesis : In codon-anticodon pairing the third base may not be complementary.

(12) Mutation recombination :

(i) Mutation : A sudden heritable change in the DNA sequence that results in the change of genotype.
(ii) Mutation and recombination is raw material for evolution as it generates variations.
(iii) Types of mutations :

• Chromosomal mutations : Loss (deletion) or gain (insertion/ duplication) of a segment of DNA results in alteration in the chromosome.
• Point mutations : Involve change in a single base pair of DNA. E.g. mutation that results in Sickle-cell anaemia.
• Deletion or insertion of base pairs of DNA : It causes frame-shift mutations or deletion mutation.

(13) t-RNA – the adapter molecule :

• t-RNA can read the codon and also can bind with the amino acid. So t-RNA is considered as an adapter molecule.
• Cloverleaf structure (2 dimensional) of t-RNA has 3 loops and 4 arms.
• For every amino acid, there is specific t-RNA.
• Initiator t-RNA is specific for methionine.
• There are no t-RNAs for stop codons.
• In the actual structure, the t-RNA molecule looks like inverted L (3 dimensional structure).

3. Translation – protein synthesis :

• Translation is the process in which sequence of codons on m-RNA is decoded and accordingly amino acids are added in specific sequence to form a polypeptide on ribosomes.
• It requires 20 different amino acids, m-RNA, t-RNA, ribosomes, ATP Mg⁺⁺ ions, enzymes, elongation, translocation and release factors.
• Translation involves
  • Activation of amino acids and formation of AA-t-RNA complex.
  • Formation of polypeptide chain : initiation, elongation, termination.

Regulation of gene expression-

In eukaryotes, the regulation of gene expression can be at different levels like

• Transcriptional level (formation of primary transcript).
• Processing level (regulation of splicing).
• Transport of m-RNA from nucleus to the cytoplasm.
• Translational level.

Operon concept-

1. A transcriptional control mechanism of gene regulation.
2. Francois Jacob and Jacques Monod (1961) : Explained that metabolic pathways are regulated as a unit.
3. Lac operon of E. coli :

(1) An inducible operon.
(2) The operon is switched on by a chemical inducer-lactose present in the medium.
(3) Lac operon consists of the following components :

• Regulator gene (repressor gene)
• Promoter gene
• Operator gene
• Structural genes : z (codes for galactosidase), y (codes for β-galactoside permease) and a (codes for transacetylase). These enzymes are involved in lactose metabolism.

4. Inducer is not a component of operon.

Genomics-

1. The term Genome was introduced by H. Winkler in 1920.
2. Genome : The total genetic constitution of an organism or a complete copy of genetic information (DNA) or one complete set of chromosomes (monoploid or haploid) of an organism.
3. Genomics (term coined by T.H. Roderick in 1986) : The study of genomes through analysis, sequencing and mapping of genes along with the study of their functions.
4. Two types of Genomics :

• Structural genomics : Involves mapping, sequencing and analysis of genome.
• Functional genomics : Involves the study of functions of all gene sequences and their expressions in organisms.

5. Application of genomics :

• Structural and functional genomics are used in the improvement of crop plant, human health and livestock.
• The knowledge and understanding acquired by genomics research can be applied in medicine, biotechnology and social sciences.
• It helps in the treatment of genetic disorders through gene therapy.
• To develop transgenic crops having more desirable characters.
• Genetic markers have applications in forensic analysis.
• Genomics can lead to introduce new gene in microbes to produce enzymes, therapeutic proteins and even biofuels.

Human Genome Project-

1. Initiated in 1990 under the International administration of the Human Genome Organization (HUGO).
2. Coordinated by the US Department of Energy and National Institute of Health, some universities across the United States and various international partners.
3. Started in 1990 and completed in 2003.

4. Aims of HGP :

• Mapping the entire human genome at the level • of nucleotide sequences.
• To store the information collected from the, project in databases.
• To develop tools and techniques for analysis of the data.
• Transfer of the related technologies to the * private sectors, such as industries.
• Taking care of the legal, ethical and social issues which may arise from project.
• To provide complete and accurate sequence of the 3 billion DNA base pairs that make up the human genome.
• To find out the estimated number of human ; genes. Now about 33,000 genes have been : estimated to be present in humans.
• To sequence the genomes of several other organisms such as bacteria e.g. E.coli, Caenorhabditis elegans, Saccharomyces cerevisiae, Drosophil, rice, Arabidopsis), Mus musculus etc.

5. HGP was closely associated with rapid development of Bioinformatics.
6. Significance :

• Increased knowledge about the functions of genes and proteins.
• A major impact in the fields like Medicine, Biotechnology and the Life sciences.
• Increased understanding of gene structure and function in other species, such studies will enhance understanding of human evolution.

7. Comparative genome sizes of humans and other model organisms.

DNA Fingerprinting-

1. Every individual has its unique genetic make- up, called its Fingerprint.
2. Reasons for Uniqueness of fingerprint :

• Recombination of paternal and maternal genes, because of which we differ from our parents.
• Infrequent mutations that occur during gamete J formation (cell division).

3. The DNA profiling or DNA fingerprinting j technique (developed by Dr. Alec Jeffreys in 1984) identifies a person with the help of DNA restriction analysis.

4. It is based on identification of nucleotide sequence present in DNA.

• About 99.9% of nucleotide sequence in all persons, is same.
• Variable Number of Tandem Repeats (VNTRs) : Unusual sequences of 20 – 100 base pairs, which are repeated several times.
• As the length of the regions having VNTRs is different in each individual, they are the key factor in DNA profiling.

5. Steps involved in DNA finger printing :

• Isolation of DNA
• Restriction digestion
• Gel electrophoresis
• Southern blotting
• Selection of DNA probe
• Hybridization
• Photography

6. Application of DNA fingerprinting :

•  Used in forensic sciences to solve rape and murder cases.
• Finds out the biological father or mother or both, of the child, in case of disputed parentage.
• Used in pedigree analysis in cats, dogs, horses and humans.

Know the scientist :
Dr. Lalji Singh (1947-2017) :

• Father of DNA fingerprinting in India.
• A unique segment obtained from Y chromosome of female banded krait snake (banded krait minor – B_KM-DNA) was used by him to develop probe for DNA fingerprinting.

His contributions :

• Established laboratories for research in fields like genetics, population biology, structural biology and transgenics.
• Established centre for DNA Fingerprinting and Diagnostics (CDFD) for all species and several diseases.
• Founded laboratory for Conservation of Endangered Species (LaCONES).
• Applied of DNA fingerprinting technology for wildlife conservation, forensics, evolution and phylogenetic research.

By going through these Maharashtra State Board 12th Science Biology Notes Chapter 9 Control and Co-ordination students can recall all the concepts quickly.

Maharashtra State Board 12th Biology Notes Chapter 9 Control and Co-ordination

Introduction-

• Plants show control and coordination by sending chemical signals and bringing about various types of movements.
• Animals control and coordinate the body’s activities by electrical and chemical signals.
• The nervous system and endocrine control system are two coordinating systems in them.

Nervous Coordination

Nervous System in Hydra-

• Hydra → diffused nervous system in the form of nerve net.
• Two nerve nets in the mesoglea, one connected towards the epidermis and second towards the gastro-dermis.
• Sensory cells scattered in the body wall and tentacles, but no sense organs
• No sensory and motor nerves.

Nervous System in Planaria (flatworm)-

• Primitive animal with a central nervous system (CNS) located on the ventral side of body.
• Mass of cerebral or cephalic ganglion appearing like an inverted U-shaped brain.
• Ventral pair of nerves arising from ganglia. Interconnected to each other by transverse nerve or commissure in a ladder like manner.
• The peripheral nerve plexus arising laterally from VNC.

Neural tissue-

1. Two types of cells in neural tissue – the neurons and the neuroglia or glial cells.
2. Nerve is bundle of axons. Outside the CNS, it is called nerve while inside it is called tract.
3. Types of nerves : Sensory (with sensory * fibres), motor (with motor fibres) and mixed * type (with both sensory and motor fibres).
4. Neurons/Nerve cells :

• Neuron is structural and functional unit of * the nervous system.
• Each multipolar neuron has three parts – cyton : or cell body, dendron and axon.

5. Grey matter and white matter :

• Grey matter is darker part of CNS. This is due to presence of cytons.
• White matter is lighter part of CNS. This is due to presence of myelin sheaths around axons.

In PNS however, the accumulation of cyton causes a swelling on the nerve. Such a swelling is called ganglion, [cytons within CNS form nuclei while those in PNS form ganglia]

6. Connective tissue layers in a nerve are :

• Endoneurium : covers each nerve fibre
• Perineurium : covers each nerve bundle having a number of neurons
• Epineurium : covers many nerve bundles to form a peripheral nerve

7. Neuroglial cells :

• More in number than the neurons.
• They are supporting cells of the Central Nervous System (CNS) and Peripheral Nervous System (PNS).
• Neurilemma is the plasma membrane of Schwann cell.

8. Tjrpes of neuroglial cells :

Synapse-

1. Junction between two nerve cells with a minute gap (synaptic cleft) in between them which allows transmission of impulse by a neurotransmitter bridge.
2. When the telodendria are connected to muscle fibre, it is called motor end plate or neuro¬muscular junction.
3. Properties of nerve fibres :

•  Excitability/Irritability
• Conductivity
• Stimulus
• Summation effect
• All or none law
• Refractory period
• Synaptic delay
• Synaptic fatigue
• Velocity

4. Types of synapses : Electrical synapse and Chemical synapse.

(1) Electrical synapses are found in those places of the body requiring fastest response as in the defence reflexes.
(2) A chemical synapse between a motor neuron and a muscle cell is called a neuromuscular junction or motor end plate.
There are three components of a typical chemical synapse.

• The pre-synaptic terminal
• The synaptic cleft
• The post-synaptic neuron

5. Transmission of nerve impulse across a synapse :

• This transmission takes place with the help of neurotransmitters.
• Once the neurotransmitters bind to the receptors of the post-synaptic cell, the action is either excitatory or inhibitory depending on the type of neurotransmitter.
• The enzyme like acetyl cholinesterase destroys the neurotransmitter after the transmission and the synapse is ready to receive a new impulse.

Transmission of nerve impulse along the axon-

• The excitable neurons transmit the impulse through changes in electrical charges across the neuronal membrane.
• The external tissue fluid has both Na+ and K+ ions.
• This process is called sodium pump or Na-K exchange pump.
• Generation of nerve impulse : Occurs through depolarization.
• Saltatory conduction takes place in medullated nerve fibres.

Human Nervous System-

1. Central nervous system (CNS) :

• Brain is enclosed within the brain box/ cranium of the skull, whereas the spinal cord lies in the vertebral canal of the vertebral column.
• Inner to these bony structures, there are 3 protective membranes called meninges.

2. Meninges :

3. CSF (cerebrospinal fluid) :

• About 100-120 cc lymph like extra cellular . fluid with specific gravity of 1.005, present in and around the CNS.
• It is secreted by the pia mater, the choroid plexuses and the ependymal cells lining the ventricles of the brain and central canal of spinal cord.

4. Functions of meninges and CSF :

• Shock absorber, protection, prevention of desiccation.
• Maintaining constant pressure inside as well as outside the CNS.
• Exchange of nutrients and wastes between blood and brain tissue.
• Supply of oxygen to the brain.

5. The Human brain :

• Encephalology : Study of all aspects of the brain.
• About 1300-1400 g in weight -and 1300-1500 cc in volume

6. Functional areas of cerebrum :

Areas	Functions
1. Frontal lobe	Motor area → controls voluntary motor activities or movements of muscles. Premotor area → higher centre for involuntary movements and autonomus nervous system.Association area → coordination between sensation and movements. Broca’s area → motor speech area.
2. Parietal lobes	Somaesthetic sensation of pain, pressure, temperature, taste
3. Temporal lobes	Centres for smell (olfactory), hearing (auditory), speech and emotions.
4. Occipital lobes	Visual area mainly for sense of vision.
5. Wernicke’s area	Present partly in temporal, parietal and occipital lobes. Sensory speech area.
6. Basal nuclei or basal ganglia	Control precise muscular activities at subconscious level.
7. Corpus striatum	At the floor of cerebrum is the largest basal nucleus.

7. Parts of the Hindbrain (Rhombencephalon) :

8. Parts of the Midbrain (Mesencephalon):

9. Parts of the Hindbrain (Rhombencephalon) :

10. Ventricles of brain : The cavities present in the different parts of the brain are called ventricles.

11. Important terms associated with brain.

• Corpus callosum : Transverse band of nerve fibres which connects right and left cerebral hemisphere. It is the largest commissure of the brain.
• Cerebral cortex : The outer surface of cerebrum, composed of grey matter.
• Cerebral medulla : Inner part composed of white matter.
• Gyri (elevations) and Sulci (depressions) : convolutions and grooves on the surface of cerebrum.
• Central sulcus : Between frontal lobe and the parietal lobes.
• Parieto-occipital sulcus : Between parietal and occipital lobes.
• Lateral or Sylvian sulcus : Between temporal lobe and frontal and parietal lobes.
• Insula or insular cortex : Fifth lobe which is folded deep within the lateral sulcus.
• Foramen of Monroe : Narrow opening through which two lateral ventricles communicate with diocoel (third ventricle).
• Pineal gland : Vestigial 3rd eye and an important endocrine gland, producing hormones melatonin and serotonin.
• Habenular commissure : Connects two thalami.
• RAS (Reticular Activating System) : Relay centre as it transmits all sensory impulses except those of olfactory to the cerebrum. Situated in thalami.
• Aqueduct of Sylvius or iter : Connection between third and fourth ventricle through hypothalamus and midbrain.
• Limbic system : A complex neuronal circuit formed by the hypothalamus, amygdala, parts of epithalamus and thalamus, hippocampus and other areas.
• Optic chiasma : Crossing of the two optic nerves.
• Corpora quadrigemina : Four rounded elevations on the dorsal surface of the midbrain. The two superior colliculi are involved in visual reflexes and the two inferior colliculi are for auditory reflexes.
• Crura cerebri : Two thick fibrous tracks, also called cerebral peduncles, situated in the floor midbrain.
• Red nucleus : Grey matter near the centre of the midbrain, controlling posture. and muscle tone, modifying some motor activities and motor coordination.
• Pons varolii : Rounded bulge on the underside of the brain stem.
• Brain stem : Consist of midbrain, pons and medulla.
• Arbor vitae : The mixing of white matter with the grey matter showing a branched tree-like pattern.
• Cerebellar peduncles : Three pairs of myelinated nerve bundles connecting cerebellum to the other parts of CNS.
• A pair of lateral – foramina of Luschka and a median – foramen of Magendie :
  apertures on the posterior choroid plexus.

12. Spinal Cord :

• Spinal cord is the lower extension of the medulla oblongata of the brain.
• It lies within the neural canal of the vertebral column and is surrounded by three meninges.
• Externally, the spinal cord appears as long cylindrical rod.
• It is 42 to 45 cm long and 2.0 to 2.5 cm broad.
• Conus medullaris : Terminal nervous part of the spinal cord.
• Filum terminate : Thread like non-nervous extension.
• 31 pairs of spinal nerves arise from lateral sides of the spinal cord.
• Cauda equina – Filum terminale with some spinal nerves running parallel to it. (appearing like a horse-tail)

13. T. S. of spinal cord :

• The spinal cord has a deep, narrow dorsal fissure and a broad ventral fissure.
• The inner grey matter is H-shaped and the outer white matter surrounds it.
• Grey matter is divisible into six horns, namely dorsal, lateral and ventral horns.
• The white matter is divisible into 6 columns or funiculi, namely dorsal, lateral and ventral funiculi.
• The dorsal and ventral horns extend out of the spinal cord as dorsal root and ventral root.
• The dorsal root has dorsal root ganglion which is a collection of unipolar sensory neurons. No such ganglia on ventral root.
• The adjustor/association or inter-neurons lie inside the grey matter.
• The white matter consists mainly of bundles of myelinated nerve fibre called ascending and descending tracts.

Functions :

• The spinal cord is the main centre for the most reflex actions.
• It provides pathway for conduction of sensory and motor impulses.

14. Peripheral Nervous System (PNS) : The peripheral nervous system connects the central nervous system to the different parts of the body having receptors and effectors.

Two types of peripheral nerves :

1. Cranial nerves : arise from the brain.
2. Spinal nerves : arise from the spinal cord.

15. Cranial Nerves :

16. Spinal Nerves:

• Thirty-one pairs of spinal nerves originate from the spinal cord.
• Spinal Nerves : All spinal nerves are mixed nerves.

17. Formation of a typical spinal nerve :

• Each spinal nerve is formed inside the neural canal of vertebral column.
• The dorsal sensory and the ventral motor nerves together form the mixed spinal nerve.
• As soon as it emerges out of vertebral column, it shows three branches, viz.
  a. Ramus dorsalis
  b. Ramus ventralis
  c. Ramus communicans

18. Reflex Action :

(1) It is a quick, automatic, involuntary and spontaneous response to stimulus,
(2) The path along which the action is carried out is called reflex arc.
(3) Components of a reflex arc :

a. Receptor/sense organ
b. Sensory/afferent neuron
c. Association/adjustor neuron
d. Motor/efferent neuron
e. Effector organ

(4) Types of reflexes :

a. Somatic and visceral
b. Cranial and spinal
c. Simple [monosynaptic] and complex [polysynaptic]
d. Unconditional and conditional
table

(5) According to recent studies, the ANS is under the control of CNS and nerves arising from it (PNS).
According to this view, the PNS is divided into
(i) Somatic nervous system
(ii) Autonomic nervous system

19. Autonomic Nervous System (ANS) :

• Autonomic nervous system transmits impulses from CNS to the involuntary organs and smooth muscles of the body.
• It includes – autonomic ganglia,
  preganglionic fibres and postganglionic fibres.
• Autonomic ganglia include
  • Sympathetic ganglia – present near CNS in the form of sympathetic cord.
  • Parasympathetic ganglia – present near or on the effector organs.
• Preganglionic fibres arise from grey matter of CNS and end at autonomic ganglia.
• Postganglionic fibres arise from autonomic ganglia to the effector organs.
  Autonomic nervous system consists of sympathetic and parasympathetic nervous system.

(1) Sympathetic Nervous System (SNS) :

• Also called thoraco-lumbar outflow.
• Consists of 22 pairs of sympathetic ganglia which lie near vertebral column.
• Post ganglion is neuron which produce adrenaline. Hence they are called adrenergic fibres.
• It works in emergencies. It is also called 3 Fs system [fright, fight and flight]. It has excitatory and stimulating effect on most organs of the body.

(2) Parasympathetic Nervous System:

• It is also called cranio-sacral outflow.
• It consists of ganglia which are very close or within the wall of the effector organs.
• Acetyicholine is produced at the terminal end of postganglionlc nerve at the effector organ. Hence these are also called cholinergic fibres.
• All activities which are stimulated by the sympathetic system are brought back to normal by this system. Hence it is also called housekeeping system.

Comparison between Sympathetic and Parasympathetic Nervous System :

Sensory Receptors-

1. Specialised structures in the body modified to receive the various stimuli from the external or internal environment.

2. Classification of receptors : Receptors are classified on the basis of their location, function and their sensitivity to specific stimuli. Their classification is given in the following chart.

Types of exteroceptors and interoceptors, their locations and functions :

3. Eye :

• The eyes are a pair of sensory organs of vision located in the orbit of skull.
• Each eye is spherical/rounded and called eyeball.
• Wall of the eyeball is made up of 3 layers : (1) sclera, (2) choroid (3) retina.

Generation of image/Mechanism of vision :

4. Ear :

• The human ear is called statoacoustic organ as it has two functions – hearing and body equilibrium.
• Anatomically the ear is made up of three divisions : the external ear, middle ear and inner ear.

(3) The organ of hearing :

• Organ of Corti is a pea sized structure located on basilar membrane. It has a sensory epithelium over the basilar membrane.
• The sensory cells have sensory hair on their free end so also called hair cell. In between the rows of hair cells are present supporting cells.
• Hair cells have long stiff microvilli called stereocillia on their apical surfaces. Above these stereocilia, is a jelly like membrane called tectorial membrane.
• This organ acts as a transducer, converting sound vibrations into nerve impulses.

(4) Other parts of the ear :

• Besides the cochlea, the internal ear also has the vestibular apparatus.
• It is composed of three semi-circular canals and the utriculo saccular region.
• All three semi-circular canals lie in different planes at right angles to each other.
• These canals are filled with endolymph. The base of each of the canal has an ampulla in which there is a sensory ridge called crista. The structure is crista ampullaris.
• The vestibule has two sensory spots – macula of saccule and utricle. The utricle is larger than saccule.

(5) Mechanism of Hearing :

Disorders of nervous system-

1. Psychological disorders :

Commonly called mental disorders. There is a wide range of conditions that affect the mood, thinking or behaviour.
Some of the major categories of psychological disorders are :

• Intellectual disability (earlier known as mental retardation),
• Autism spectrum disorder
• Bipolar disorder
• Depression
• Anxiety disorder
• ADHD (Attention Deficit Hyperactivity Disorder)
• Stress related disorders.

2. Parkinson’s disease :

• Degeneration of dopamine-producing neurons in the CNS causes Parkinson’s disease.
• Symptoms develop gradually over the years.
• Symptoms are tremors, stiffness, difficulty in walking, balance and coordination.

3. Alzheimer’s disease :

• It is the most common form of dementia.
• Its incidence increases with the age.
• Symptoms include the loss of cognitive functioning- thinking, remembering, reasoning and behavioural abilities. It interferes with the person’s daily life and activities.

Chemical Coordination

Endocrine system –

1. The cells in organisms communicate with each other through chemical signals. These cells are broadly of four types as follows :

• Autocrines : Cells release secretion to stimulate themselves.
• Paracrines : Cells release secretion to stimulate neighbouring cells.
• Endocrines : Cells release secretion to stimulate distant cells.
• Pheromones : Cells/Organs release secretions to stimulate other organism.

2. Chemical coordination is carried out by secretions of ductless glands or endocrine glands. Hence this chemical coordination system is also called the endocrine system.

3. Endocrine system :

• The endocrine system controls body activities by means of chemical messengers called hormones.
• Hormones are released directly into the blood.

4. Properties of Hormones :

• They act as chemical messengers and are effective in very low concentration.
• Hormones can function as regulators that inhibit or stimulate or modify specific processes.
• Hypersecretion or Hyposecretion of hormones leads to various disorders.
• These are metabolised after their function and are excreted through urine.

5. Mechanism of hormone action :

• Hormones are released in a very small quantity.
• They produce their effect on the target organs/cells by binding to hormone receptors.
• The hormone receptors may be on the cell membrane or may be intracellular.
• A hormone receptor complex is formed and . this leads to biochemical change in the target tissue.

(a) Mode of hormone action through membrane receptors :

• Hormones like catecholamines, peptide and polypeptide hormones are not lipid soluble. Therefore they cannot enter their target cells through plasma membrane.
• Molecules of amino acid derivatives, peptide hormones bind to specific receptor molecules located on the plasma membrane.
• The hormone receptor complex causes the release of an enzyme adenylate cyclase from the receptor site. This enzyme forms cyclic AMP from ATP of the cell.
• The hormone acts as the first messenger and cAMP is the second messenger.

(b) Mode of hormone action through intracellular receptors :

• Steroid and thyroid hormones are lipid soluble and easily pass through plasma membrane of target cell into the cytoplasm.
• In the cytoplasm, they bind to specific intra¬cellular receptor proteins forming a hormone-receptor complex that enters the nucleus.
• In the nucleus, the hormone receptor complex binds to a specific regulatory site of DNA.

Major endocrine glands-

1. Hypothalamus :

• Ectodermal in origin.
• Forms the floor of diencephalon.
• Major function is to maintain homeostasis.
• Controls the secretory activity of pituitary gland by the release and inhibiting hormones.
• All hormones of hypothalamus are peptide hormones.

2. Hormones of hypothalamus :

• Somatotropin/GHRF
• Somatostatin/GHRIF
• Adrenocorticotropin Releasing Hormone
• Thyrotropin Releasing Factor .
• Gonadotropin Releasing Hormone (GnRH)
• Prolactin Inhibiting Hormone (Prolactostatin)
• Gastrin Releasing Peptide (GRP)
• Gastric Inhibitory Polypeptide (GIP)

3. Pituitary gland or hypophysis :

(1) External morphology :

• Pea sized reddish-grey coloured gland.
• Controls almost all other endocrine glands, hence previously it was called the master endocrine gland.
• However, hypothalamus controls it through the releasing and inhibiting factors.
• Located just below the hypothalamus and is attached to it by a stalk called infundibulum or hypophyseal stalk.
• Remains lodged in a bony depression called sella turcica of the sphenoid bone.
• Consists of two lobes called anterior lobe (Adenohypophysis) and posterior lobe (Neurohypophysis). Intermediate lobe (Pars intermedia) is a small reduced part lying in the cleft between the anterior and posterior lobe.
• Neurohypophysis is connected directly to the hypothalamus by axon fibres forming hypothalamo- hypophyseal tract,
• Adenohypophysis and intermediate lobe are connected to the hypothalamus through hypothalamo- hypophyseal portal system.

(2) Parts, morphology, histology and functions of pituitary in a glance :

(3) Hypothalamo – Hypophyseal portal system :

• Various hormones secreted by hypothalamus reach the pituitary gland through this portal system.
• The portal vein collects blood from various parts of hypothalamus and opens into anterior lobe of pituitary.
• From pituitary, the vein finally carries the blood into the superior vena cava.

(4) Hormones of pituitary and their role :

4. Pineal gland :

• The pineal body/pineal gland is given off from the roof of diencephalon. It is located between the two cerebral hemispheres.
• The pineal gland is sensitive to the biochemical signals of light.
• It secretes a hormone called melatonin also known as sleep hormone.

5. Thyroid gland :

(1) Morphology :

• It is the largest endocrine gland.
• The two lobes of thyroid gland are connected a non-secretory band called isthmus.

(2) Internal structure :

• The thyroid lobes are composed of rounded follicles held together by interfollicular connective tissue called stroma.
• The stroma contains blood capillaries and small group of parafollicular cell or ‘C’ cells.
• Thyroid follicles Eire composed of cuboidal epithelium resting on a basement membrane and is filled with a gelatinous colloid.

(3) Thyroid hormones :

• The two hormones secreted by the follicular cells are Thyroxine/tetra iodothyronine/T₄ (four atoms of iodine) and Triiodothyronine or T₃ (three atoms of iodine).
• Parafollicular cells produce a hormone thyrocalcitonin whose production is not under the control of TSH.

(4) Formation of T₃ and T₄ :

• Thyroxine is synthesized by attaching iodine to amino acid tyrosine by enzymatic action.
• The amino acid tyrosine molecule binds to iodine to produce Monoiodotyronine (T₁) or 2 atoms of iodine to produce Diiodothyroninc (T₂).
• T₁ and T₂ molecules bind end to end to make colloidal mass inside the follicle. They are further metabolised to prepare T₃ and T₄.

(5) Functions of Thyroid hormones :

• Regulation of the basal metabolic rate of body.
• Regulation of metabolism by stimulating protein synthesis and promotes growth of body tissues.
• Calorigenic effect as it helps in thermoregulation by increasing heat production.
• Increases action of neuro transmitters – adrenaline and nor adrenaline.
• Supports the process of RBC production and maintenance of water and electrolyte balance.
• Regulates reproductive cycles in females.
• Parafollicular cells or ‘C’ cells produce thyrocalcitonin hormone, which regulates calcium metabolism.
• Calcitonin is the active form of hormone, which is hypocalcemic hormone. It regulates the concentration of calcium and phosphorus in the blood.

(6) Disorders related to thyroid gland :

6. Parathyroid gland :

• Situated on the posterior surface of the lobes of thyroid gland.
• 2 pairs, named as superior and inferior parathyroid glands.
• Cells are arranged in a compact mass.

(4) Hormones :

• The parathyroid secretes a peptide hormone called parathormone (PTH). It is also called
  Collip’s hormone.
• Regulates calcium and phosphate balance between blood and other tissues. It is a hyper calcemic hormone. Release of parathormone increases blood calcium level.
• It stimulates osteoclast of bones to stimulate bone resorption.
• Thus, parathormone and calcitonin are antagonistic hormones.

(5) Disorders :

Hyposecretion of parathormone	Hypersecretion of parathormone
Parathyroid tetany or hypocalcaemic tetany.	Osteoporosis.
Lowers concentration of calcium in the blood. This increases excitability of nerves and muscles causing muscle twitch and spasm.	Responsible for more resorption of calcium from bones i.e., demineralization of bones resulting in softening, bending and fracture of bone.

7. Thymus gland :

(1) Located in the upper part of thorax on the dorsal side of the heart just behind sternum.
(2) Prominent gland at birth till puberty but gets gradually atrophied in the adult due to action of sex hormones.

(3) Functions:

• Secretes the hormone thymosin.
• Important role in the development of immune system by maturation of T-lymphocytes.

8. Adrenal gland/Suprarenal gland:

(1) Adrenal glands have dual origin from mesoderm and ectoderm.”
(2) Located on the upper border of each kidney.
(3) Small. conical yellowish glands having two distinct regions, outer cortex and inner medulla.

(A) Adrenal cortex (outer)	(B) Adrenal medulla (inner)
Derived from embryonic mesoderm. Secretes many hormones together called corticoids. Main two hormones : (1) Glucocorticoids (2) Mineralocorticoids	Derived from embryonic ectoderm. Secretes main two hormones (1)   Adrenaline (epinephrine) (Emergency hormone, also called 3F hormone – (fight, flight and fright). (2)   Noradrenaline (norepinephrine). (Regulates the blood pressure under normal condition, acts as vasoconstrictor)

(4) Three concentric regions of adrenal cortex :

(5) Disorders related to Adrenal cortex :

9. Pancreas :

• Develops from endoderm.
• It is heterocrine i,e. both exocrine and endocrine gland.
• Endocrine cells of pancreas form groups of cells called Islets of Langerhans.
• There are four kinds of cells in islets of

Langerhans which secrete hormones.

• Alpha (α) cells (20%) secrete glucagon.
• Beta (β) cells (70%) secrete insulin.
• Delta ((δ) cell (5%) secrete somatostatin
• PP cells or F cells (5%) secrete pancreatic polypeptide (PP).

Disorder related to pancreas : Diabetes mellitus

• Hyperglycemia i.e. It leads to increased blood glucose level.
• Cause : Under activity of Beta cells, which results in reduced secretion of insulin.
• Types of diabetes :

(1) TYPE-1 diabetes i.e. insulin dependent diabetes mellitus (IDDM)
(2) TYPE-2 diabetes i.e. Non insulin dependent diabetes mellitus (NIDDMj.

• Diabetes causes glucosuria, excessive urination and dehydration of body tissues, degradation of fats and increase in formation of ketone bodies (ketosis).
• Administration of insulin lowers blood glucose level.

10. Gonads : Gonads are sex organs (the testes and the ovaries).

(1) Ovaries :

(2) Testes : Testes secrete male sex hormones called androgens such as testosterone.

Testosterone :

• It is secreted from interstitial cells or Leydig cells by the influence of luteinising hormone (LH).
• Rise in testosterone level in blood above normal inhibits LH secretion.
• It is also responsible for appearance of secondary sexual characters such as facial and pubic hair, deepening of voice, broadening of shoulders, male aggressiveness, etc.

11. Placenta :

• Temporary endocrine source in pregnant women which forms intimate connection between foetus and uterine wall of the mother for physiological exchange of the materials.
• During pregnancy, placenta secretes hormones such as estrogen, progesterone, HCG (Human Chorionic Gonadotropin) and human placental progesterone.

12. Diffused endocrine glands :

(1) Gastro-intestinal tract : Certain cells of gastrointestinal mucosa are endocrine in function. Their hormones play vital role in digestive processes and flow of digestive juices.

Hormone of GI tract	Function
1. Gastrin	Stimulates gastric glands to produce gastric juice.
2. Secretin	Responsible for secretion of pancreatic juice and bile from pancreas and liver.
3. Cholecystokinin CCK/ Pancreozymin PZ :	Stimulates gall bladder to release bile and stimulates the pancreas to release its enzymes.
4. Entero-gastrone/Gastric inhibitory peptide (GIP)	Slows gastric contractions and inhibits the secretion of gastric juice.

(2) Kidney :

• Hormones of kidney – renin, erythropoietin and calcitriol (calcitriol is the active form of vitamin cholecalciferol -D3).
• Renin along with angiotensin helps in maintaining the blood pressure in the renal artery by vasoconstriction.
• Erythropoietin stimulates erythropoiesis.
• Calcitriol helps in absorbing calcium from the stomach.

(3) Heart :

• Hormone of heart-Atrial natriuretic Factor /ANE
• Increases sodium excretion [natriuresis] along with water by kidneys.
• Reduces blood pressure by lowering blood volume.

13. Hormone therapy/HT :

• Use of hormones in medical treatment.
• Required for the patients during pregnancy, menopause, osteoporosis, growth hormone deficiency, insulin resistance, cancer, etc.