IAS Mains Commerce Papers 1987

Download PDF of This Page (Size: 132K)

IAS Mains Commerce 1987

Paper I

Section A

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

    1. Discuss the steps to be taken for preparing financial statements according to Current Purchasing Power method.

    2. What are the powers of Commissioner of Income Tax?

    3. Explain how Flexible Budget can be used by management to control cost.

    4. State the special points to be kept in view while auditing the books of a commercial bank.

  2. Answer the following questions

    1. Discuss the provisions of Income Tax Act regarding incomes which are neither included in total Income nor tax is payable on them.

    2. What are the rights of an Auditor under Indian Companies Act 1956?

  3. From the following information for a month, calculate the various fixed overhead variances.

    • Standard Actual
    • Output (units) 10, 3000 10, 094
    • No. Of days worked 25 26
    • Efficiency of Labour 100% 95%
    • Fixed expenses (Rs. ) 15, 000 15, 150
  4. The following is the Balance Sheet of Seven Seas Ltd. As on 31 − 12 − 1986:

    • Liabilities Rs. Assets Rs.
    • Share Capital:
    • Authorised, issued and fully paid
    • Equity Shares of Rs. 10 each 6% Pref.
    • Shares of Rs. 10 each
    • Reserves
    • Less Profit & Loss
    • A/c 7% Debenture
    • Creditors
    • Rs. 1, 00, 000 40, 000 1, 40, 000 45, 350 1, 85, 350 55, 650 1, 29, 700 20, 000 27, 450 177, 150
    • Fixed Assets:
    • Current Assets:
    • Stock Rs. 81, 250
    • Debtors Rs. 46, 750
    • Cash Rs. 2, 450 46, 700 1, 30, 450 177, 150

    The Company, after the approval of the court, puts the following scheme of reconstruction:

    1. Each of the existing Rs. 10 debenture is to be exchanged for Rs. 5 of new 9% debenture, one new 10 per cent preference share of Rs. 2.50 and one new equity share of Rs. 2.50.

    2. Each existing Preference Share is to be reduced to Rs. 3.75, of which Rs. 2 will be represented by new 10% Preference Share and Rs. 1, 75 by new equity share.

    3. Each existing equity share is to be reduced to Rs. 250 and then both Preference and Equity shares are to be consolidated into share of Rs. 10 each.

    The reduction of Capital and reserves are applied for writing off tosses and the balance, if any, is used for writing down fixed asset and stock prosrata. You are required to

    1. pass the journal entries

    2. show the revised balance sheet. It may be presumed that the Court has not passed orders Lot using the words and reduced and also does not want the Company to show the details of reduction in the Balance Sheet.

Section B

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

    1. The modern approach to financial management is an analytical way of looking at the financial problems of a firm. Comment.

    2. Critically examine the investment policy of Life Insurance Corporation of India in recent years.

    3. What are your suggestions o remove the deficiencies of Indian Money Market?

    4. What is the impact of Crossing on a cheque?

  2. A choice is to be made between two cometing proposals which require an equal investment of Rs. 100, 000 and are expected to generate net cash flows as under

    • Project I Project II
    • Rs. Rs.
    • End of year 1 35, 000 20, 000
    • End of year 2 30, 000 24, 000
    • End of year 3 20000 35, 000
    • End of year 4 Nil 50, 000
    • End of year 5 25, 000 16, 000
    • End of year 6 12, 000 8, 000

    The cost of capital of the company is 10 per cent. The following are the Present Value Factors at the rate of 10% per annum

    • Year P. V. Factor @10% p. a. 1 0.909
    • 2.0. 826
    • 3.0. 751
    • 4.0. 683
    • 5.0. 621
    • 6.0. 564

    Which project proposal should be chosen and why? Evaluate the project proposals under:

    1. Pay back period

    2. Discounted Cash Flow methods.

    Also-point out their relative merits and demerits.

  3. Answer the following questions

    1. Define the concept of Cost of Capital. How would you determine the Weighted Average Cost of Capital of a firm?

    2. What are the conditions which are to be fulfilled by a person to become Holder in due

    Course of a negotiable instrument?

  4. Give a critical assessment of the present monetary and credit policy of the Reserve Bank of India. Has it been successful in controlling inflation? 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 is not more than 200 words on each:

    1. Systems Approach to Organization

    2. Functional Organization

    3. Nature and Basis of Power

    4. Organizational Effectiveness

  2. What are the various implications of perception for management? How does management affect perception of people in the organization?

  3. Distinguish between Vrooms valence expectancy theory and Porter-Lawler model of motivation. How can these theories be helpful in motivating managers?

  4. Examine the leadership styles being followed by Indian managers. Can you suggest a right style?

Section B

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

    1. Penmans Theory of Unionism

    2. Workers Education in India

    3. Labour turnover in Indian Industries

    4. International Labour Organization and India.

  2. Define the term Industrial relations and discuss the determinants of good industrial relations.

  3. What are the problems of collective bargaining? Explain the factors that contribute to effective collective bargaining.

  4. Discuss thee essentials of a national wage policy. Is a uniform national wage feasible in India?

Sail through IAS Mains and Prelims: Fully-explained Prelims (Both GS & Aptitude) problems with detailed solutions. Notes & detailed answers for Mains GS, Essay, and Complulsory (Hindi and English) papers and optionals.