GUG/W/18/10754 1 P.T.O
Master of Computer Management (M.C.M.) (Old CBCS Pattern) First Semester
1MCM1 PCMCMT101 Commercial Practices
P. Pages 4 GUG/W/18/10754
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory.
2. All questions carry equal marks.
1.

State the taxable income under salary.
8

Write the concept and convention of Accounting.
8
OR

A book-keeper submitted to you the following trial balance, which he has not been able to tally. Rewrite the trial balance, correcting the mistakes committed by him.
Particular
Amount
Amount
Capital
Drawings
Stock
Return Inwards
Carriage Inwards
Deposits
Return outwards
Carriage outwards
Loan to Amol.
Interest on Loan
Rent.
Rent outstanding
Stock (31-12-2016)
Purchases
Debtors
Goodwill
Creditors
Advertisement Exp.
Provision for doubtful debts
Bad Debts
Prints and Partners
Cash
Sales
Discount Allowed
Wages.

3,250
17,445

1,240

840



820
130

12,970
4,000
1,730

954

400
500
62


754
15,000


554

1,375

725
1,000
25


18,792



3,000

1,200



27,914
330

45,095
69,915
8
*2912*
GUG/W/18/10754 2

From the following information prepare Trading A/c Profit Loss A/c and Balance Sheet for the year ended 31st Dec. 2016
8
Building
Furniture
Opening Stock
Investment
Purchases
Sales Return
Wages
Carriage
Godown Rent
Sundry Debtors
Discount Allowed
Salary to employee
Cash in hand
1,25,000
13,000
15,000
12,000
95,000
2,900
6,000
8,000
1,000
48,000
900
27,000
1150
Sales
Purchase Return
Creditors
Bank Loan on Mortgage
Long term loan taken
Discount Received
RDD Bad Debts
Share Capital
Advertisement
Printing and Stationary
Bad debts written off
Cash at Bank
1,65,000
5,000
65,000
35,000
50,000
300
1,500
50,000
1,600
2,900
850
11,500
Adjustment:-
Stock at the end of year Rs. 25,000
ii) Write off Bad debt Rs. 150 and create R.D.D. on Debtors
iii) Provide interest 10% p.a. for loan taken.
iv) Rs. 500 advance salary.
It has been decided to pay dividend on capital.
vi) Rs. 1500 are to be transferred to education. Reserve.
2.

The following details are available from a companies book for one year the company manufactures plants:
Stock of Raw materials (Opening)
Stock of finished goods (Opening)
Purchases
Productive Wages
Sale of finished Goods
Stock of Finished Goods (closing)
Stock of Raw Material (Closing)
Works Overhead
Office and general Expenses
Rs. 12,800
Rs. 28,000
Rs. 2,92,000
Rs. 1,98,800
Rs. 5,92,000
Rs. 30,000
Rs. 13,600
Rs. 43,736
Rs. 35,524
The company is about to send a tender for large plant. The costing department estimates that the material required would cost Rs. 20,000 and wages Rs. 12,000. Tender is to be made keeping a net profit 20% on selling price. State what would be the amount of the tender if works overheads are based on productive wages and office and general expenses are based on works cost.
8
GUG/W/18/10754 3 P.T.O

A product passes through two process A and B. From the following Information Prepare Process account.
Particular
Process A
Process B
Material Consumed
Wages
Indirect Expenses
Normal Wastage
Selling price of wastage Per 100 units
Output (units)
10,000
15,000
2,500

20
48,000
5,000
7,673
2,500

30
46,000
50,000 units of raw material were introduced in process A @Rs. 0.50 per unit.
8
OR

Following are the trading profit and loss Account of Rishal Products Ltd. for the year ending 31st March 2017 and balance sheet as on that date.
Trading P/L A/c.
(For the year ended 31st March 2017)
Particular
Amount
Particular
Amount
To, op. Stock
To. Purchases
To, Gross Profit
To. Sundry Expenses
To. Net Profit
1,40,000
6,10,000
1,50,000
9,00,000
90,000
60,000
By, Sales,
By, Closing Stock
By, Gross Profit
7,50,000
1,50,000

9,00,000

1,50,000
1,50,000
1,50,000
8
Balance Sheet
(as on 31-03-2017)
Liabilities
Amount
Assets
Amount
Share Capital
Reserve and Surplus
Balance 50,000
Profit for the year 60,000

Bank overdraft
Creditors
6,00,000
1,10,000
80,000
2,10,000
Fixed Assets
Stock Debtors
Cash
5,50,000
1,55,000
85,000
2,10,000
10,00,000
10,00,000
You are required to calculate the following ratio.
Current Ratio ii) Liquid Ratio
iii) Gross Profit Ratio iv) Stock Turnover Ratio
GUG/W/18/10754 4

The expenses budgeted for production of 10,000 units.
Particular
Per Unit Rs.
Material
Wages
Variable Expenses
Fixed Cost (Rs. 10,000)
Variable Expenses (Direct)
Selling Expenses Fixed)
Distribution Expenses Fixed)
Administrative Expenses (Rs. 5000)
7.00
2.50
2.00
1.00
0.50
1.30
0.70
0.50
Prepare a budget for the production of 8,000 and 6,000 units.
8
3.

State the essentials features of offer.
8

Discuss the causes of dissolution of partnership.
8
OR

Explain the formation of company meeting.
8

State the principles of Articles of association.
8
4.

Explain the management is an art science.
8

State the process of decision making.
8
OR

Write the qualities and styles of leadership.
8

Explain the essential factors to influence communication.
8
5.
Write short note.
Elements of double entry accounting.
4
Limitation of Cost Accounting.
4
Prospectus.
4
Duties of Human Resource Manager.
4