IAS Mains Commerce Papers 2006

IAS Mains Commerce 2006

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. Accounting is the language of business. Discuss (20).

    2. What are the functions of Cost Accounting (20)?

    3. What are the deductions that are to be made in computing total income (20)?

    4. Critically examine the terms true and fair that are used in Auditors Report (20).

  2. Answer the following questions

    1. Define Goodwill. Explain in detail different methods of valuation of goodwill (30).

    2. Prepare a Flexible Budget from the following data made available in respect of half-yearly period and forecast the working results at 70%, 85% and 100% of capacity when the respective sales are Rupees 50 lakhs, Rupees 60 lakhs and Rupees 85 lakhs. While fixed expenses remain constant, semi-variable expenses also remain constant between 55% and 75% of capacity, increasing by 10% between 75% and 90% and 100% of capacity. The expenses at 60% capacity are as follows: (30)

      • Semi-variable
      • Rupees in lakhs
      • Maintenance and Repair
      • 1.25
      • Indirect Labour
      • 5.00
      • Sales Department Expenses
      • 1.50
      • Sundry Overheads
      • 1.25
      • Variable
      • Rupees in lakhs
      • Materials
      • 12.00
      • Labour
      • 13.00
      • Other Expenses
      • 2.00
      • Fixed
      • Rupees in lakhs
      • Wages and Salaries
      • 4.20
      • Rent Rates and Taxes
      • 2.80
      • Depreciation
      • 3.50
      • Sundry Overheads
      • 4.50
      • 51.00
  3. Answer the following questions

    1. What is Share as understood from Company Accounts? When and why does the question of valuation of share arise? What are the different methods of valuation of share (30)?

    2. Draft a comprehensive Capital Reduction Scheme taking into account appropriate imaginary figures (30).

  4. Answer the following questions

    1. Explain the Civil Liability of a Company Auditor (30).

    2. Discuss the relevant provisions of Income Tax concerning Salary (30).

Section B

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

    1. Finance is the lifeblood of business. Discuss (20).

    2. Explain the concept of Money Market (20).

    3. Explain the nature and scope of Capital Budgeting (20).

    4. What is Credit Management (20)?

  2. Answer the following questions

    1. What is Financial Management? Explain its nature, scope and objectives (30).

    2. Information:

    I Year II Year III Year

    Return on Capital (ROC) 15% 12% 9%

    Margin on Sale (MOS) 3% 3% 3%

    From the above information, you are asked to find out the reason (s) for decline of ROC. What should be your recommendation to improve ROC (30)?

  3. Answer the following questions

    1. Explain the concept of valuation. How are firms Fixed Income Securities and Common Stocks valued (30)?

    2. X and Co. Is desirous to purchase a business and has consulted you, and one point on which you are asked to advise them is the average amount of working capital, which will be required in the first years working. You are given the following estimates and instructed to add 10% to your computed figure to allow for contingencies Figures for the year & Rs.

      1. Average amount locked up for swats:

        Stock of Finished Product

        Stock of Stores, Materials

        Stocks 5, 000

        Stocks 8, 000

      2. Average credit given:

        • Inland Sales-6 weeks credit
        • Export Sales-11
        • Sales 2 weeks credit 3, 12, 000 78, 000
      3. Lag in payment of wages and other outgoings:

        • Wages-11 − 2 weeks
        • Stores, Materials, etc. 11 − 2 months
        • Rent, Royalties, etc. 6 months
        • Clerical Staff-½ month
        • Manager-½ month
        • Miscellaneous Expenses-11 − 2 months
        • Expenses 2, 60, 000
        • Expenses 48, 000
        • Expenses 10, 000
        • Expenses 62, 000
        • Expenses 4, 800
        • Expenses 48, 000
      4. Payment hi advance: Sundry Expenses (paid quarterly in advance) 8, 000

      5. Undrawn Profits on the average throughout the year 11, 000

      Set up your calculations for the average amount of working capital required (30).

  4. Answer the following questions

    1. Explain in detail the System of Consortium with your comments (30).

    2. Explain in detail the Theories of Dividend (30).

    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 II

Section A

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

    1. 3 − D Management style

    2. Coalition formation

    3. Social Information Processing Approach (SIPA)

    4. Contingency plans.

  2. Do you think an organization must grow bigger and bigger? Can it be kept small? Answer the questions analysing the forces that affect the status of an organization. Use Indian examples to elucidate your answer (60).

  3. Define, differentiate and integrate the stated goals and operating goals of an organization (60).

  4. Discuss the basic concept and model of situational leadership. How does it differ from other leadership models (60)?

Section B

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

    1. Mafia unionism

    2. Concession bargaining

    3. International division of labour

    4. Inside contracting

  2. Discuss the emerging scenarios of industrial relations in the era of liberalisation and globalisation of Indian economy (60).

  3. Critically evaluate the concept of Complex man. In what respects is it different from other theories of motivation (60)?

  4. Discuss the behavioural theories of collective bargaining process (60).