IAS Mains Commerce Papers 1985

IAS Mains Commerce 1985

Paper I

Section A

  1. Answer any three of the following in not more than 200 words each:

    1. Should the accounting statements reflect changes in the value of money? Give your opinion with arguments.

    2. In vouching payments, the auditor does not merely seek proof that money has been paid. Discuss.

    3. State the powers of the Commissioner under the Income tax Act.

    4. Shares can be satisfactorily valued on the basis of the yield. Examine the statement.

  2. Answer the following questions

    1. Describe the steps you would take to carry out an efficient audit of the share capital of a newly started company.

    2. State the method of determining the annual value of

      1. let out property

      2. self occupied property for income tax purpose.

  3. Hari Ltd. Acquired 1, 200 shares of Rs. 100 each in Shni Ltd. On July I, 1984. The summarised Balance Sheets of Hari Ltd. And Shri Ltd. As at December 31, 1984 were:

    • Liabilities Hari Ltd. Rs.
    • Shri Ltd. Rs.
    • Share Capital:
    • Shares of Rs. 100 each
    • Capital Reserve
    • General Reserve
    • Profit & Loss Account
    • Bills Payable Creditors
    • Proposed Dividend
    • Liabilities 6, 00, 000
    • 40.000 40, 000 70, 000 60, 000 1, 60, 000 68, 000 20, 000 4, 000 7, 000
    • 35.000 16, 000 8, 10, 000 3, 10, 000
    • Assets Rs. Rs.
    • Fixed Assets
    • Shares in Shri Ltd.
    • Stock
    • Debtors
    • Bills Receivable
    • Cash at Bank 5, 06, 000 2, 00, 000 60, 000 20, 000 4, 000 20, 00 2, 56, 000 20, 000 20, 000 14, 000 8, 10, 000 3, 10, 000

    You are given the following additional information:

    1. Stock in hand of Hari Ltd. Include Rs. 9, 600 for goods at invoice price bought from Shri Ltd.

    2. Shri Ltd. Charges 20% profit on cost to goods sold to Hari Ltd.

    3. Creditors of Shri Ltd. Include Rs. 10, 000 payable to Hari Ltd.

    4. Bills Receivables of Hari Ltd. Are all accepted by Shni Ltd.

    You are required to prepare the consolidated Balance Sheet and show your working.

  4. What are the important areas of management decisions opened up by the application of marginal costing technique? Answer briefly and to the point.

Section B

  1. Answer any three of the following in dot more than 200 words each:

    1. Examine the role of commercial banks in providing short term finance to industry.

    2. Discuss the deficiencies of Indian Money Market.

    3. State the norms and guidelines of debt-equity ratio. Have you any suggestion to make in this regard?

    4. Distinguish between the economic and accounting concepts of working capital.

  2. The management of a firm is considering an investment project costing Rs. 1, 50, 000. It will have a scrap value of Rs. 10, 000 at the end of its 5-year life. Transportation and installation charges are expected to be Rs. 5, 000 and Rs. 25, 000 respectively. If the project is accepted, a spare parts inventory of Rs. 10, 000 must also be acquired and maintained. It is estimated that the spare parts will have an estimated scrap value of 60% of their initial costs after 5 years. Annual revenue from the project is expected to be Rs. 1, 70, 000 and annual labour, material and maintenance expenses are estimated to be Rs. 15, 000, Rs. 50, 000 and Rs. 5, 000 respectively. The depreciation and taxes for each of the five years will be

    • Year Depreciation Taxes
    • Rs. Rs. 1 72, 000 11, 200 2 43, 200 22, 720 3 32, 400 27, 040 4 21, 600 31, 360 5 800 39, 680

    Calculate Net Cash Flows for each year and cost of the project. Evaluate the project at 12% rate of interest, Note: The discount factors at 12% are:

    • Year 1 2 3 4 5
    • Factor 0.9 0.8 0.7 0.6 0.57
  3. Give an assessment of the monetary and credit policies of the Reserve Bank of India.

  4. Answer the following questions

    1. Evaluate in brief the working of the Unit Trust of India.

    2. What is the implication of words Not Negotiable written in the crossing of a crossed cheque?

Paper II

Section A

Time Allowed: 3 hours Maximum Marks: 300

Candidates should attempt Questions 1 and 5 which are compulsory, and any three of the remaining questions selecting at least one question from each Section.

  1. Write notes on any three of the following in not more than 200 words each:

    1. Bureaucracy

    2. McGregors approach to leadership style

    3. Organisational adaptation

    4. Constructive and Destructive conflict.

  2. Define the basic motive patterns which produce the required behaviours in organisations. Examine the various factors leading to motivation.

  3. Do you think informal work cliques often strongly influence employees in ways that are in conflict with company objectives? If this should occur, what should a company do?

  4. How do recent trends towards wide diversification, if not conglomeration, affect the design and implementation of sound organisational control system?

Section B

  1. Write notes on any three of the following in not more than 200 words each:

    1. Personnel Audit and Research

    2. Workers participation in management

    3. Industrial Disputes (Amendment) Act, 1976

    4. Trade Union leadership in India today.

  2. How far and with what effect is it desirable to accept the principle of equal pay for equal work? How far do the provisions or the Payment of Wages (Amendment) Act, 1976, conform to the principle of equal pay for equal work?

  3. Critically assess the machinery for settlement of industrial disputes in India. In regard to settlement of industrial disputes in the country, which of the methods do you prefer and why?

  4. What do you understand by collective bargaining? Does it help in promoting industrial harmony in a fast developing country like India?