2021 COMMERCE AND ACCOUNTANCY afta sik rarer Time : 3 hours } | Maximum Marks : 200 wa: 3] [sift sis: 200 Instructions ( F&) : fi) This paper is divided into two Sections, Section—A and Section—B. a sera 2 Get 8 fannie 2, Ge—a sik zB I (i) Each Section contains eight questions. wets Ge i sre se #1 (iii) A candidate has to attempt twelve questions. vem share at ang seit ar sak fer 8 fv) Question Nos. 1 and 9 are compulsory and out of the remaining, any ten are to be attempted choosing five from each Section. We Fen 1 sit 9 after é st ae we 4 a edi aa ar oe fora 2, wes aS @ ata-ata wei a eet eT BI (v) Question Nos. 1 and 9 consist of five parts each. Each part will be of 6 marks. Word limit will be 150 (in relevant subjects only) + ye Reni sito % cta—ata wm 2 woke am & fire 6 sis ruttta 1 wee det 150 7% titra @ (arr Brag fare #)1 (vi) Remaining questions will be of 14 marks each, Wy er 14 Sreet & whe we eA Commerce and Accountancy/31A. 1 [ P-n0.SECTION—A USA 1. Answer the following questions : 6*5=30 Fratertion seit % ag: (@) “An assessee is not only liable in respect of his own income for tax purposes but his liability may extend to incomes of other persons also.” Comment on this statement. cay exert a ee A eae oe aH AA aI Ae R ales seA erraTAT Ge ‘sth 6h sea & aren at eh" ew ee eo a (b) Explain briefly the significance of standard costing as a technique of cost control. ‘WH Ca (standard costing) # ara Fear A wa erties & aH TAA EL TA Teed wi aay H are FI (©) Discuss the role of SEBI in relation to investor protection. ‘ffs MN (investor protection) # He # SEB! % frat + feral (d) What is tax audit? Examine the nature of organizations for which tax audit is mandatory. wt HEM (tax audit) FT 87 FH Area Hi wpa A ats we fas fea ax velar airard & (e) Distinguish between net profits and cash from operating activities, YS AM (net profits) Fk vitarer afafafeeat B Fat Wave (cash from operating activities) & SR # He Ft commerce and Accoustancy/31A 22. (a) Two firms X Ltd. and Y Ltd. sell the same type of products in the same market. For the year 2020-21, their forecasted profits are as follows: 7 Particulai X Ltd. | Particulars ¥ Ltd. (in 2) (in) Sales 1,50,000 | Sales 1,50,000 Less : Cost of Sales Less : Cost of Sales z z Variable Cost 1,20,000 Variable Cost | 1,00,000 Fixed Costs 15,000 | 1,35,000 | Fixed Costs 35,000 | 1,35,000 Budgeted Profit 15,000 15,000 Required : (@ Calculate the break-even points of each firm. (ii) State which firm is likely to earn greater profits in conditions of 1. Heavy demand ‘for the product Il. Low demand for the product wl x fates ok y fates ue 3a scr Ht fat we A ao Fw 8) at 2020-21 & fae srt yatgata arm Freafertion & : fre xfaftes | faa vy fetes ea) a) fam 1,50,000 | fax 1,50,000 fea: fat A art ‘fea : fash A arr z z ‘aftadretier eT 1,20,000} ‘aftacefiet arr 1,00,000} ffgaa arma 15,000] 1,35,000 | fafa era 35,000] 1,35,000 asda a 15,000 15,000 warn? () 3m el ar aTA-HET (break-even) fergai Ft wT FEL i) age, Fer —ah oe g eremrat H esa Serer aH ax wat Bi 1, Sere Sh wre a M1, Sere =r aa APT Commerce and Accountancy/31A 3 [P-r.0,(b) Explain briefly the propositions made in Modigliani and Miller approach on cost of capital. 7 A cra ee ara the row ges Hee wera At da# ore I 3. A product passes through three processes, viz., Process—I, Process—II and Process—Ill. The normal wastage of each process is as follows : [Process Wastage ‘Sales value of wastage I 3% 25 paise per unit " 6% 50 paise per unit u 10% @ 1 per unit 15000 units of crude material were initially introduced in Process—I @ ® 1 per unit. The other expenses were as follows : Particulars | Process—I_ | Process—II | Process—III zg e z Materials 1,500 2,250 750 Direct Labour 7,500 12,000 9,750 ‘Manufacturing expenses. 1,575 1,425 3,015 ‘The output of each process was as under : Process—I 14250 Process—II_ 13650 Process—Ill 12012 Prepare process cost accounts and abnormal wastage and abnormal effectiveness accounts. at commerce and Accountancy/31A_ 4WH sere dia siearsit 8 Sa Te en of, wena sik wen wee eB rarer sree Fr wae feat aera arama an Pere yea 1 3% 25 ten aff sag 0 6% 50 ter aft sare m1 10% @1 sta gag ‘ipa A sft garg © 1 FB 15000 garEal seh Were min H Ag of) ae fra war o fear wfrn—t safer wien z fe z aaa 1,500 2,250 750 were 7,500 12,000 9,750 sere od 1,575 1,425 3,015 ete sian = se (output) FEAT a: sett 14250 sit 13650 wie = 12012 ie eer aren are he ren tore SY eT ara eA at ‘4. (a) Compute the share price of the company as per the Walter model where expected earnings per share is 7 8, cost of equity as 15% and return on investment as 20%, if the dividend pay-out ratio is 100 percent, 50 percent and 0 percent. 7 sree wider & age, wer gin yea A orn wt sel wees sit ar aa 38 8, BT Wea 15% & she cra ATTA 20% B, af aia B—sMe STATA 100%, 50% 7H 0% # (b) Bvatuate the role of credit rating agencies. 7 wfee ten wae ot fires a yeaa =) Commerce and Accountancy/31A. 5 [P-T0. 148. X (30 years), an Indian national, furnishes the following particulars for the assessment year 2021-22 : Income from Salary : Basic Salary €2,16,000 Bonus % 42,000 City compensatory allowance & 14,000 Car (1510cc) owned by X is used for personal and official purposes (expenditure reimbursed by the employer-company : % 1,58,000, as per certificate issued by the employer. % 1,22,000 is attributable towards official use of the car) Interest (net) on listed debentures paid on 17th December, 2020 (net of tax deducted at source at 10%) %9,000 Winnings from lotteries (amount received on Ist March, 2021, net of tax deducted at source) %35,000 Dividends on shares in Indian companies (net of tax deducted at source at 10%) % 2,50,200 Contribution to recognized provident fund 1,28,400 Insurance premium on own life insurance policy (sum assured 50,000, policy taken in 2009) % 14,000 Determine the net income and tax payable of X for the assessment year 2021-22, assuming that tax deducted from salary is € 7,200. Ignore Section 115BAC pertaining to alternative tax regime. 14 X (30 4), UH Unda aris, at-Ruter wt (assessment year) 2021-22 % few, ‘fara fare am Gat @ aaa ARI a F2,16,000 ‘ara & 42,000 wet sfaga HAT % 14,000 Commerce and Accountancy/31A. 6mM (1510cc) Ht XF wee @ wafers sik antes eva Sri i awa ete (wR ‘are ord fre are weer see Pritam ge x 1,58,000 wry At meh, fret ore siftrantee sai % fea rt & 1,22,000 8) 17 Fea, 2020 = atte AA ATS (WG) TE HI et (Fe a a TH 10% % fea @ ret TAH #) % 9,000 ‘ied 4 sit ng cae (aft 1 ard, 2021 a we gs, al a Ie BA & GAMA) & 35,000 sania aera H stam cinta (Few Aa HIT WAT 10%) %2,50,200 ‘eggs fier fat # sen < 1,28,400 ‘frit ates dia ifort oc aftr siftemr (gPifeaa af z 50,000, erfee 2009 F vt mE) 14,000 ax-frafer ag 2021-22 & fare x Ft gat oa sik 2a ax fafa BH a ae ee fe aa 7,200 #1 a areata 2 fame ae SaaET aS ams AAT 11 5BAC Hl aA 4 wa ATE) 6. (a) Earnings Before Interest and Tax (EBIT) of a company is ® 12,00,000. The company consists of 10% debentures of € 20,00,000, 15% preference shares of %30,00,000 and equity shares totalling 5,00,000 shares of ® 10 each. Tax rate of the company is 20%. Find out Degree of Financial Leverage (DFL) when EBIT increases by 100%. oa ait ax & oe eH ert FH sit F 12,00,000 8! % 20,00,000 % 10% % TIT %, €30,00,000 % 15% Yatftren sia € sik mart & ara sia & 10 wha sir % fear 8 5,00,000% €1 sar & ax Ft 20% 81 Fa EBIT 100% TH WE BTM aa Fer ‘atter fest sre wt (b) What is ‘Money Market’? Discuss its features and functions. “Wat saw en 2? ahi stead sik arlfate At fae Fhe) 7. (a) Explain the salient features of buy-back provisions as laid down in Section 68 of the Companies Act. arf afefaa 4 ot 6s 4 Raita aaas weuri fi qe fetes A omen eI (b) What is wealth maximization? How is it superior to profit maximization? or cftrmararen aa 27 ae oT siftraatrae B a Aaa #7 commerce and Accountancy/31A B (PTO.8. Jain Ltd. has authorized capital of €30,00,000 consisting of 3,00,000 equity shares of 710 each. The following is the trial balance of the company as at 31st March, 2021 14 Debit Balances ®___[Gredit Balances © Calls in Arrears 2,00,000 | Sales 1,56,20,000 Purchases - 87,70,000 | Creditors 5,00,000 Advance Tax Paid 24,50,000 | 12% Debentures 10,00,000 Salaries 20,00,000 | General Reserve 5,80,000 Selling Expenses 22,00,000 | Provision for Rent 1,00,000 | Depreciation on Plant | 5,00,000 Prepaid Rent 20,000 | Provision for Interest on debentures 1,00,000 | Depreciation on Plant 25,00,000 | Furniture 3,00,000 Furniture 13,00,000 | Securities Premium 4,50,000 Debtors 8,00,000 | Surplus Account Discount on Issue (01/04/2020) 1,20,000 of Debentures 10,000 | Provision for ‘Stock (01/04/2020) 4,50,000 | Doubtful Debts 30,000 Bad Debts 50,000 | Commission 1,00,000 Bank Balance 4,50,000 | Equity Share Capital | 20,00,000 Buildings 10,50,000 | Provision for Tax (01/04/2020) 12,50,000 2,24,50,000 2,24,50,000 Additional information = (a) Rent % 20,000 is outstanding (®) Plant includes plant costing % 2,50,000 purchased on Ist October, 2020 (c) Provide depreciation on plant at 20% per annum and on furniture at :) Provide depreciati y 20% \d on furni 10% per annum on written down value basis (d) Maintain a provision for doubtful debts at 5% on debtors (¢) The company proposed a dividend at 10% on paid up share capital Make a provision of 30% for income tax (including surcharge and cess) (@) Corporate dividend tax is at 16995% (including surcharge and cess) (h) Closing stock is % 20,00,000 ( Debentures were issued on 01/04/2020 ‘You are required to prepare (Statement of Profit and Loss for the year ending 31st March, 2021 and (i) Balance Sheet in the prescribed form as at 31st March, 2021 as per the Schedule III of the Companies Act, 2013. Commerce and Accountancy/31A. 83 feifies % aq & 30,00,000 & siftrpa Yui 8 fara = 10 fe sit % 3,00,000 erat oa enfter @1 31 ard, 2021 wt BER a Tere Feaferfiaa & = | fae ara & we te z ear 2,00,000 | fas 1,56,20,000 bal : 87,70,000 | AER 5,00,000 Sire aC TA 24,50,000 | 12% Fe 10,00,000 jaar 20,00,000 | arar=i afafa 5,80,000 Fama oe 22,00,000 | a & era aU 5,00,000 fara 1,00,000 | WHER & Sra TAU 3,00,000 kent Pen 20,000 | fea stem 4,50,000 [EOI I SAT 1,00,000 | siferara zaraT (01/04/2020) 1,20,000 is 25,00,000 | sift 5put 3 fee sre 30,000 tte 13,00,000 | fer 1,00,000 ere 8,00,000 | aan sia Yoft 20,00,000 ores I TI 10,000 | @% =I TAHA (01/04/2020)] 12,50,000 HF2F5 (01/04/2020) 4,50,000 afer acer 50,000 am 4,50,000 ea 10,50,000 2,24,50,000 2,24,50,000 after aaa: (a) fara & 20,000 are & (b) 1 SRK, 2020 I Geer TAT Has F % 2,50,000 a Ha ara enfret & (o) Foan pa sre oe aaa 1 20% fa a sik wala Fe 10% ft ae A aA APT Ba rH at (Q) BIR 5% Bere aeoiT aT oTaETA fee, (e) Sr a gm sia 10% aM aT BETTE Ta O FRRRCK 30% A WAUM (acant sik Ba at Gar) Gg) Pie ara x 16.995% & (AtaNI Hk a BI Ga) ‘Commerce and Accountancy/31A 9 [ P-T.0.9. 10. (ny sift xia ¥20,00,000® (01/04/2020 38 -emres Fa fra ar are Fa HEAT 8 yan ard, 2001 ame A ae ad & foe or athe aA a ee ate fay 31-54, 2001 mrt FEM, 2013 3 sea mF aE Pras ore nfties fag Te) SECTION—B GSB Write notes on the following : 6*5=30 fraferfiad % fecatirat fer (@) Type A and Type B Personality oat aA ak aes B fara (b) Mechanistic and Organic Structure Tahies ok afifre aa (o) E-Recruitment Etgee (d) Management Games aatie Te (e) International Labour Organization sien om ia “Classical theory has relevant insights into the nature of the organization. But the value of this theory is limited by its narrow concentration on the formal anatomy of organization.” Discuss this statement. 14 ret Frac Pal aera hepa oA AGA aia eT @, Ae Frere apne eer eh AN wel ere 3s ee Meee HA” ge AL TTT wl ‘Commerce and Accountancy/31A. 10ii. 12. 13. 14, Commerce and Accountancy/31A. a [P.7.0, (@) “Effective leadership is a function of three factors : the leader, the led and the situation,” Discuss. ‘rare gra sree afar a afore at & «Sa, rns fear at & sth oRReafaN” ga oe sm fan Ferdi (®) Why do employees join a Trade Union? Discuss the role of Trade Union in the planned econoinic development of the nation. ‘setae et ates rH afr ata 2 fase ar A ator mies aoa afiee ata Ai am upfirar atc 87 (@) Discuss the functional and dysfunctional aspects of conflicts in an organization, Fe afters 8a eter te Boater een fe ee Pree ea (b) How is job analysis information helpful in human resource management? wm sfears # aed feectam qaan, ra sare werers 3 fore $a aera 2? (@) Why is performance appraisal necessary in organizations? Discuss any two techniques of performance appraisal. fear 4 ari frones apaien aa ae8 ater &7 ard Romer aoe A fad a Tertiat a a at (©) Explain the significance of employee welfare in an organization. feof dears 4 akan A sear & wera x oe wt (@) “Several fringe benefits are offered to executives to motivate them and retain them with enterprise.” Explain this statement “Ho sage cm serdar aH fee ora & ahs a eit sgh ee ait nfo FE ad re war ta ah ee AH erren zt) (©) “Interview is the least valid method of selection, yet it is most widely used.” Discuss. “arene fet wesrell 3 ara & form wae sre wren &, flee oft ger ore ada Bre Br facta wey + (a) “Job evaluation determines the worth of the job and not of the job holder.” Examine this statement, cord arate ard apa at After wen 8 Ph eel we aa Ar ga wea Sate wl (®) Discuss in brief the nature of organizational goals. rarer et oA ef ar arn atte a16. (a) “Socialization is an exercise in adaption to the new work environment.” Comment 7 garda af aed area 3 gE A a sree 81? Roh fer (0) Discuss in brief the characteristics, advantages and limitations of matrix organizations. a Aga wftearit A afore frie, ere sft seer wen aierergar a aaa F seta ml wk Commerce and Accountancy/31A 12 1LLL22/318—30