IAS Mains Commerce Papers 1984

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IAS Mains Commerce 1984

Paper I

Section A

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

    1. Differentiate between current Purchasing Power Accounting and current Cost Accounting. Can either of these separately or jointly completely replace historical cost accounting?

    2. Explain the provisions related to Investment Allowance under the Indian Income Tax Act.

    3. Explain Value Analysis as a tool of Cost Reduction.

    4. Briefly describe the procedure for removal of statutory auditor of a limited company.

  2. Given below is the Balance Sheet of A company limited as on March 31, 1984:

    • Liabilities Rs. Assets Rs. 5, 000 7% Preference shares of Rs. 10 each 6, 000 Equity shares of
    • Rs. 10 each fully paid 10% Debentures Rs. 10, 000
    • Add. Interest Rs. 2, 000
    • Trade creditors 50, 000 60, 000 12, 000 8, 000
    • Patents
    • Buildings
    • Stock
    • Debtors
    • Cash
    • Profit & Loss
    • A/c 24, 500 60, 000 18, 000 12, 000 500 15, 000
    • Rs. 1, 30, 000 Rs. 1, 30, 000

    The following scheme of external reconstruction has been sanctioned

    1. A new company X Ltd. Is to be formed to take over the business of this company.

    2. One equity share of Rs. 10 each fully paid in the new company be issued for every 6 equity shares in this company.

    3. Three equity shares of Rs. 10 each fully paid in the new company be issued for every 10 preference shares in this company.

    4. Debenture holders be paid in full by the new company.

    5. Trade creditorrs to receive 80% of their claims in the form of equity shares of Rs. 10 each fully paid in the new company in full settlement.

    6. Patents and business losses are to be written off:

    7. Arrears of preference share dividend be cleared by issuing one Rs. 10 fully paid 7% preference share in the new company for every 20 shares held.

    8. Any balance available after the implementation of the above scheme be used in revaluing buildings.

    9. The new company will pay Rs. 5, 000 for liquidation expenses in addition to the purchase consideration.

    10. The new company will issue 5, 000 equity shares of Rs. 10 each of its directors.

    You are required to prepare Realisation Account, Equity Shareholders A/c, Preference

    Shareholders A/c in the books. Of A Company Ltd. And to record journal entries and prepare Initial

    Balance Sheet in the books of X Ltd.

  3. Answer the following questions

    1. Explain the provisions of Indian Income Tax Act, 1961 relating to set off and carry forward of losses.

    2. Define and differentiate between

      1. Internal check and Internal audit

      2. Valuation and verification.

  4. The following figures are available from financial accounts for the year ended March 31, 1984:

    • Rs.
    • Direct material consumed 1, 25, 000
    • Direct wages 50, 000
    • Factory overheads 1, 90, 000
    • Administration overheads 1, 25, 000
    • Selling and distribution overheads 2, 40, 000
    • Bad debts 10, 000
    • Preliminary expenses written off 5, 000
    • Legal charges 2, 500
    • Interest and dividend income 30, 000
    • Sales (60, 000 units) 3, 50, 000
    • Closing Stock:
    • Finished stock (20, 000 units) 60, 000
    • Work in progress 40, 000

    Cost records reveal that direct material consumed was of Rs. 1, 40, 000 and factory overheads were recovered at 20% of Prime cost. Administration overhead was charged at Rs. 3 per unit of production and selling and distribution overheads were charged at Rs. 4 per unit sold.

    You are required to prepare

    1. Costing Profit & Loss A/c

    2. Financial Profit & Loss A/c

    3. Statement reconciling the profit disclosed by the Costing Profit & Loss A/c and Financial Profit & Loss A/c

Section B

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

    1. Differentiate between Capitalisation and Capital structure. How will you find out whether a companys capital structure is a balanced one?

    2. Describe the role of convertible debentures in corporate finance of India.

    3. Explain the structure of assets and liabilities of a Commercial Bank in India.

    4. Briefly describe the investment policy of the Life Insurance Corporation of India.

  2. Describe and examine the suitability of various techniques available for incorporation of risk factor while making capital investment decisions.

  3. Answer the following questions

    1. Explain and illustrate the cash flow approach of forecasting working capital needs of business undertaking.

    2. Examine critically the working of Regional Rural Bank in India.

  4. Answer the following questions

    1. Evaluate the working of any one all-India Term Financial Institution.

    2. Mention the provisions of the Negotiable Instruments Act, 1881 regarding statutory protection to the playing bankers.

Paper II

Section A

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.

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

    1. Simon-March approach to organisation

    2. Significance of culture to organisation

    3. Power structure and politics in India

    4. The dynamics of organisational change.

  2. What is the role of bureaucracy in an industrial organisation? Does it differ from administration? What part status plays in an organisation?

  3. Examine the relationship between personal and organisation goals. How are these personal goals reconciled to multiplicity of organisational goals so as to avoid the resulting conflicts?

  4. What are the effective tools for organisational control? Why do workers oppose controls? How can you make the controls acceptable to workers?

Section B

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

    1. Bonus issue and industrial workers

    2. Wage differentials in labour market in India

    3. Perlmas theory of unionism

    4. Measures undertaken for executive development in India.

  2. Examine the causes and consequences of the small size of trade unions in India. What measures do you suggest to overcome the problems of the size of trade unions?

  3. State the objectives and the contents of workers education, and evaluate the impact of the scheme.

  4. What are the recent trends in personal audit? Analyse the audit tools as used in Indian industrial units.

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