COMBINED COMPETITIVE EXAMINATION (MAIN)
COMMERCE AND ACCOUNTANCY
Paper-I
Time 3 hours Full Marks 200
Note: The figures in the right-hand margin indicate jUll marks for the questions.

Attempt five questions in all.


Question No. 1. is compulsory.


1. Answer any ten of the following questions 4xlO=40

What is job costing?


What is residential status?


What is fueed working capital?


Define risk.


What is setoff of loss?


What is vouching?


What is revenue expenditure?


What is margin of safety?'
What is nonperforming asset?



What is a Treasury Bill?


What is fmancial structure? .


What is a cost sheet?


2. Answer any eight of the following questioHs 5x8=40

What is a development finance institution?


What is lease fmancing?


Explain, giving example, HIFOmethod of inventory management.


110/DD5-2015/COMM ACCT-PI/Set-B 1 P.T.O.
Distinguish betweeb: internal audit and external audit.
What do you mean by key factor? Give some examples of it which used in marginal costing. are
Ifthe fIxed cost is 2 lakh and variable cost is 50 percent of sale pof the product which is 46, fmd out the margin of safety. rice
What is unfair trading practice?
What is the present value of an equity share if the expected ratreturn is 12 percent, dividend per share expected in this year is and the expected market price after one year is 234? e of 2
What is capital market?
.What is a qualifIed audit report?

3. Answer any five of the following questions 8x5=40

What are various tax provisions for computation of capital gains for nonresidents?


What are the documents need to be verilled in case of valuing the stock of a company?


What are repo and reverse repo rates? How are they used by RBI?


What are the savings or investments qualify for deduction under Section 80C of the Income-tax Act, 1961?


What are the differences between absorption and amalgamation?


What is Walter model?


How is an auditor appointed in a company?


4. Answer any four of the following questions 10x4=40

How is semi-'variable cost segregated?


Why is depreciation charged? How is it treated in books of accounts?


Briefly mention the procedure of setting of accounting standards in India.


What are the incomes that do not form part of total income?


What are the qualities of an auditor?


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5. Answer any four of the following questions: 10x4=40

How is cost of capital calculated? Calculate weighted cost of capital from the following


10 percent debenture of lakh


10000 equity shares of 100 each (cost of equity 20 percent)


9 percent preference share capital of 2 lakh
Long-term loan from bank of 50,000 (interest rate 12 percent)


Between a 10 percent debenture and a 10 percent preference share which one is cheaper for a company and why?


What is cash budget? How is it prepared?


What are the short-term sources of fmancing working


Calculate the annual rental value of house property, if the municipal rental value is 50,000 p.a. and fair rental value is 60,000 p.a., provided­


actual rent is p.a. and standard rent is p.a.;


actual rent is 48,000 p.a. and standard rent is 70,000 p.a.




6. Answer any two of the following questions: 20x2=40

Discuss various goals of financial management. Which one of them is superior and why?


Explain both fmancialleverage and operating leverage. Also calculate combined leverage, ifthe same is 120, variable cost is 96, fixed cost is interest on loan is 3 and tax rate is 30 percent.


What are various approaches to working capital management? Explain' them in detail.


7. Answer any two of the following questions 20x2=40

Discuss the techniques of cost control.


What is responsibility accounting? How is it useful to management? Discuss residual income approach of measuring divisional performance by giving example.


Explain the nature of accounting and distinguish it from fmancial accounting. .


.h
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8. Answer any four of the following questions 10x4=40

What is sampling? How is sampling helpful in auditing?


How is the capital gain arising out of sale of agricultural land treated?


How is accounting rate of return calculated? Explain with an example.


Highlight the role of World Bank in industrial fmancing.


What are different causes of industrial sickness?


How does insurance help economic development? .


What is capital structure? What are the factors need to be considered for optimum capital structure decision? How does the net income approach differ from the traditional approach to capital structure? 40
10. Rainbow Pharma produces 4000 unis of a drug at 100 percent capacity. The following information is obtained from its books of accounts
I
March 2015 April 2015
Units produced 2800 3600
Rep8Jr and Maintenance 500 560
Power 1800 2000
Shop labour. 700 900
Consumable stores 1400 1800
Salaries 1000 1000
Inspection 200 240
Depreciation 1400 1400
The rate of production per hour is 10 units
Direct material per unit is 1
Direct wages per hour is 4
Y.9U are required to­

compute the cost of production at 80% and 60% capacity showing the variable, fIxed and semi-fIxed items under flexible budget;


fmd out the overhead absorption rate unit at 80% capacity. 40



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