IAS Mains Commerce Papers 2003

IAS Mains Commerce 2003

Time Allowed: 3 hours Maximum Marks: 300

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

Paper I

Section A

  1. Answer any three of the following questions. The answer of each question should not exceed 200 words:

    1. The financial books have a specific purpose to serve and the information available through them has to be supplemented through other records Discuss the necessity of caving cost records (20).

    2. What is Amalgamation of Companies? How does it differ from Absorption and Reconstruction of Companies (20)?

    3. Discuss the powers of Incomes Tax officers (20).

    4. How will you audit the cash transactions of a Company (20)?

  2. Answer the following

    1. It is said that the success of a Standard Cost Accountancy System is dependent on the extent of responsibility which the top management assumes in correcting the conditions which cause variance from standards Discuss the extent to which this responsibility should be delegated to lower levels and outline a method by which the performance of the individuals responsible can be watched.

    2. A factory manufacturing readymade garments uses the cut pieces of cloth to manufacture dolls. The following cost information has been prepared to show that the manufacture of dolls results in a loss of Rs. 500 Hence there is a suggestion to discontinue the manufacture of dolls. What is your advice? Give reasons. Note The cut pieces used in dolls will fetch a waste value of Rs. 1, 000, if sold (30)

      Item

      Ready-made Dolls

      Garments

      Total

      Direct materials

      Rs. 40, 000

      Rs. 3, 000

      Rs. 43, 000

      Direct Labour

      Rs. 6, 500

      Rs. 600

      Rs. 7, 100

      Other variable costs

      Rs. 8, 500

      Rs. 1, 400

      Rs. 9, 900

      Fixed overheads

      Rs. 12, 000

      Rs. 1, 500

      Rs. 13, 500

      Total

      Rs. 67, 000

      Rs. Rs. 6, 500

      Rs. 73, 500

      Sales value

      Rs. 85, 000

      Rs. 6, 000

      Rs. 91, 000

      Profit

      Rs. 18, 000

      Rs. 17, 500

      NA

      Loss

      Rs. 500

      NA

      NA

  3. Answer the following questions

    1. Write a note on the powers and duties of a company auditor (30).

    2. The actual production was only 60 units, materials used 40 units of X and 60 units of Y. Calculate material yield variance (30).

      Material

      Units

      Rate

      Total

      X

      Rs. 30

      Units: 4

      Rs. 120

      Y

      Rs. 70

      Units: 3

      Rs. 210

  4. Answer the following questions

    1. Explain the term Budgetary Control. On what factors does the success of such control depend (30)?

    2. Find out the income from house property chargeable to tax for the assessment year 2002 − 03 in the following cases (30)

      Item

      X

      Y

      Municipal value

      Rs. 1, 20, 000

      Rs. 1, 20, 000

      Fair rent

      Rs. 1, 30, 000

      Rs. 1, 30, 000

      Standard rent under the Rent Control Act.

      Rs. 1, 10, 000

      Rs. 1, 10, 000

      Actual rent if property is let out throughout the pervious year

      Rs. 1, 26, 000

      Rs. 1, 26, 000

      Unrealised rent of the previous year 2001 − 02

      Rs. 10, 500

      Nil

      Period when the property remained vacant in number of month

      Month 1

      Nil

      Loss due to vacancy

      Rs. 10, 500

      Nil

      Municipal Taxes-Tax of the year 2001 − 02

      Rs. 18, 000

      Rs. 18, 000

      Paid by X and Y during 2001 − 02

      Rs. 17, 000

      Rs. 8, 000

      Paid by X and Y after March 31, 2002

      Rs. 1, 000

      Rs. 1, 000

      Paid by tenants during 2001 − 02

      Rs. 9, 000

      Rs. 9, 0000

Section B

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

    1. Wealth maximization is the main function of financial management. Comment (20).

    2. Define lease financing (20)

    3. What is a new issue market (20)?

    4. Write a note on trading on equity (20).

  2. Answer the following questions

    1. Explain the term Capital Structure. What should generally be the features of an appropriate capital structure for a company (30)?

    2. A Company offers to its shareholders the right to buy 2 shares of Rs. 130 each for every five share of Rs. 100 each held in the company. The market value of the share is Rs. 200 each.

    Calculate the value of Right (30).

  3. Answer the following questions

    1. Explain the concept of Venture Capital and discuss its salient features in the Indian Context (30).

    2. Discuss the powers and role of Securities and Exchange Board of India (SEW) (30).

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

Paper II

Section A

  1. Write notes on any THREE of the following in about 200 words each: (20 × 3 = 60)

    1. Primary goals of organisation.

    2. Management of conflict

    3. Organisation control and effectiveness

    4. Organisational change.

  2. Define formal and informal organisation Explain their relative importance (60).

  3. Perception is considered as a subjective, active and complex process. Discuss. What steps will you take to reduce barriers arid biases (60)?

  4. Organisation s culture bound. Discuss and explain that sound organisation culture is key to progress of any organisation (60).

Section B

  1. Write notes on any THREE of the following in about 200 words each: (20 × 3 = 60)

    1. The concept of fair wage

    2. Causes of industrial unrest

    3. Achievements of ILO

    4. Profit sharing.

  2. Explain the socio-economic conditions of Industrial labour in India. Has there been any change in the socio-economic conditions of labour in recent year (60)?

  3. Explain the forms of workers participation in management. Why it could not succeed in India inspite of its destrability (60)?

  4. Discuss the role of Personnel Department in an organisation (60).