Commerce UPSC PYQ 2019

Explain with suitable examples how 'Shut-down Cost' is different from 'Sunk Cost'.

Distinguish between Primary Market and Secondary Market.

"Job analysis is useful for overall management of all personnel activities." In the light of this statement, explain the purpose and methods of job analysis.

Wages vs. Productivity

What do you understand by budgeting ? What are the essentials of effective budgeting system ? What are its limitations ?

Mr. X is a Government employee at Ludhiana and is getting following emoluments : (i) Salary - ₹ 30,000 per month (ii) Dearness Allowance (enters) - 60% of salary (iii) Contribution in Notified Pension Scheme - ₹ 3,000 per month (iv) Employer's contribution to Pension Scheme - ₹ 3,000 per month (v) Transport Allowance for commuting between home and office - ₹ 2,800 p.m. (vi) Deputation Allowance (for 2 months) - ₹ 3,000 per month (vii) Entertainment Allowance - ₹ 2,000 per month (During the year, he spent ₹ 12,000 on entertainment of official guests) (viii) He has been provided with a rent-free accommodation. The licence fee for the accommodation has been fixed at ₹ 2,000 per month. The government has also provided him with furniture items costing ₹ 1,00,000 (WDV - ₹ 75,000) for his personal use. (ix) He has been provided with the facility of a servant and watchman w.e.f. 01.10.2018 and the government is paying ₹ 3,000 per month to each of these servants. (x) A laptop costing ₹ 50,000 has been given to him for his official as well as personal purposes. (xi) On 01.10.2018 he took a loan of ₹ 2,00,000 from his employer to buy a car at a concessional rate of interest of 6.25%. The repayment of loan started w.e.f. 01.01.2019 @ ₹ 10,000 per month. SBI rate of interest as on 01.04.2018 was 9.25%. (xii) During the year savings made by Mr. X were : (a) LIC Premium : For Self ₹ 10,500 (sum assured ₹ 2,00,000) For Spouse ₹ 12,000 (sum assured ₹ 1,00,000) For Mother ₹ 8,000 (sum assured ₹ 1,00,000) For Major Son ₹ 8,000 (not dependent on him but is suffering from disability) (sum assured ₹ 50,000) All life insurance policies were taken in the previous year 2014-15. (b) PPF Deposits : ₹ 5000 (c) Tuition Fees of Second Son studying in a College ₹ 6,000 (d) Repayment of Housing Loan from LIC (Principal Portion) - ₹ 36,000 Calculate : (i) Salary Income (ii) Qualifying amount for deduction U/S 80 C.

"There is a need for integrating individual and organisational goals for effective performance." Explain this statement.

"The Trade Union movement in India has not developed on healthy lines." Examine this statement.

"A firm should follow a policy of very high dividend pay-out". Do you agree? Why or why not ?

From the following information, you are required to prepare the balance sheet of A Ltd as on March 31, 2019 : Current Ratio 1.60 : 1 Liquid Ratio 1.10 : 1 Inventory Turnover 6 times Gross Profit Ratio 20% Debt Collection Period 1.92 months Fixed Assets Turnover 1.25 times Reserves and Surplus to Capital 0.25 : 1 Long Term Loan to Net worth 0.5 : 1 Fixed Assets to Net worth 1.20 : 1 Sales for the year ₹ 7,50,000

Discuss how the residential status of an assessee is determined in income tax purposes ?

What is Activity Based Costing (ABC) system ? How is it different from Traditional Costing System ? Explain the Steps to implement ABC system.

Explain five major points that an auditor shall keep in mind while conducting audit of a Charitable Trust.

A proforma cost sheet of a company provides the following particulars : Raw Material Cost per Unit ₹ 70 Direct Labour Cost per Unit ₹ 35 Overhead Cost per Unit ₹ 55 Total Cost per Unit ₹ 160 Profit per Unit ₹ 25 Selling price per Unit ₹ 185 Additional Information : (i) Raw Materials are in stock on an average for 1 month. (ii) Materials are in process on an average for $\frac{1}{2}$ month. (iii) Finished goods are in stock on an average for 1 month. (iv) Credit allowed by Suppliers is 1 month. (v) Credit allowed to Debtors is 2 months. (vi) Lag in payment of wages is $1\frac{1}{2}$ weeks. (vii) Lag in payment of Overhead expenses is 1 month. (viii) $\frac{1}{4}\text{th}$ of the output is sold against cash. (ix) Cash in hand and at bank is expected to be ₹ 2,50,000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 Units of production. You may assume that production is carried on evenly throughout the year, wages and overheads accrue similarly and a time period of 52 weeks is equivalent to a year and 4 weeks is equivalent to a month.

What are the recommendations of the International Labour Organisation for minimising the labour problems related to international workforce ? To what extent have these recommendations been fulfilled in the Indian context ?

Explain why the companies buy back their own shares. How is it different from issue of bonus shares ?

"The fundamental aim of industrial relations is to maintain sound relations between employees and employers." Elucidate. What are the various approaches to industrial relations ?

"Investing in securities through Mutual Fund is a better choice than direct investment" - examine the statement.

From the following information of a firm, calculate the cashflow from operating activities by applying Direct Method : (For the year ended March 31, 2019) Cost of Goods sold ₹ 1,00,000 Sales ₹ 1,50,000 Salaries ₹ 12,000 Insurance Premium ₹ 3,000 Depreciation ₹ 10,000 Additional Information : Particulars 01.04.2018 01.04.2019 Debtors ₹ 18,000 ₹ 25,000 Bills Receivables ₹ 7,000 ₹ 4,000 Creditors ₹ 8,000 ₹ 6,000 Stock ₹ 20,000 ₹ 25,000 Salaries Outstanding ₹ 2,000 ₹ 3,000 Prepaid Insurance Premium ₹ 1,000 ₹ 1,000

Sun Ltd and Moon Ltd were amalgamated on and from April 01, 2019. A new company called Black-Hole Ltd was formed to take over the business of the above two companies. The balance sheets of Sun Ltd and Moon Ltd as on March 31, 2019 are given below : (in lakhs) Particulars Sun Ltd Moon Ltd (A) Liabilities : (i) Share Capital : Equity shares of ₹ 100 each 2,000 1,600 15% preference shares of ₹ 100 each 800 600 (ii) Revaluation Reserve 200 160 (iii) General Reserve 400 300 (iv) Surplus Account 160 120 (v) 12% Debentures of ₹ 100 each 192 160 (vi) Current Liabilities 408 190 Total 4,160 3,130 (B) Assets : (i) Fixed Assets 2,400 2,000 (ii) Current Assets, Loans and Advances 1,760 1,130 Total 4,160 3,130 Additional Information : (1) Preference shareholders of Sun Ltd and Moon Ltd have received the same number of 15% preference shares of ₹ 100 each in the new company. (2) 12% Debentures of Sun Ltd and Moon Ltd are discharged by the new company by issuing adequate number of 16% Debentures of ₹ 100 each to ensure that they continue to receive the same amount of interest. (3) Black-Hole Ltd has issued 1.5 Equity shares for each Equity share of Sun Ltd and 1 Equity share for each Equity share of Moon Ltd. The face value of shares issued by Black-Hole Ltd is ₹ 100 each. You are required to prepare the balance sheet of Black-Hole Ltd as on April 01, 2019 after the amalgamation has been carried out using the "Pooling of Interest Method".

What do you understand by the term Annual Value of house property ? How would you determine the annual value of let out house property which remained vacant for part of previous year ?

What are the causes of industrial disputes ? Explain the steps taken for preventing and settling industrial disputes in India.

Perceptual Selectivity

Human Resource Planning

What do you mean by corporate restructuring ? Outline its objectives. Explain the various techniques used for corporate restructuring.

Illustrate the Net Income Approach relating to capital structure decision making.

Explain 'Indifference Point' (IP) in EBIT-EPS analysis.

Explain the concept and rationale of decentralisation. What are the factors which influence decentralisation ?

Akash Limited wishes to raise additional finance of ₹ 10 lakh for meeting its investment plans. It has ₹ 2,10,000 in the form of retained earnings available for investment purposes. The following are the further details : (i) Debt - Equity Mix 30% - 70% (ii) Cost of Debt up to ₹ 1,80,000 10% (before tax) (iii) Cost of Debt beyond ₹ 1,80,000 16% (before tax) (iv) Earnings per share ₹ 4 (v) Dividend pay out 50% of earnings (vi) Expected growth rate in dividend 10% (vii) Current market price per share ₹ 44 (viii) Tax Rate 50% You are required to : (a) Determine the pattern for raising the additional finance. (b) Determine the post-tax average cost of additional debts. (c) Determine the cost of retained earnings and cost of equity. (d) Compute the overall weighted average after tax cost of additional finance.

Job Specification

What do you understand by role conflict ? What are its causes ? Discuss the methods to overcome role conflict.

"Performance appraisal is not merely for appraisal, but also for accomplishment and improvement of performance." Comment.

Discuss the various functions of a commercial bank.

Trade Union Rivalry

Span of Management

What is Responsibility Accounting ? Explain the prerequisites and the problems in its implementation.

Explain the nature of perception. How does management affect perception in the organisation ?

Quality Circles

Goal Succession

"Maximization of profits is regarded as the proper objective of investment decision, but it is not as exclusive as maximizing shareholders' wealth" - Comment.

"The compliance with the statutory labour welfare provisions in India is half-hearted and inadequate." Do you agree with this statement ? Comment.

"Transactional analysis is a method of analysing and understanding interpersonal behaviour." Examine this statement.

What is CAPM ? What are the components of CAPM equation? Explain the meaning of each component. What does it tell us about the required return on a risky investment ?

What is 'Money Market' ? Discuss its features and functions.

"Selection is virtually a kind of elimination process." In the light of this statement, explain the objectives and process of selection.

"The line managers' orientation differs considerably from that of expert advisors." Examine this statement.

Explain how investigation is different from that of Auditing. Under what circumstances the Central Government can order for investigation of a company ?

Explain the nature and need for depreciation. Distinguish between straight line method and diminishing balance method of depreciation. What disclosures are required to be made in financial statements as per AS-6 on depreciation accounting ?

Two manufacturing companies which have the following operating details, decide to merge : Particulars Company X Company Y Capacity Utilization 90% 60% Sales ( ₹ in lakh) 540 300 Variable Cost ( ₹ in lakh) 396 225 Fixed Cost ( ₹ in lakh) 80 50 Assuming that the proposal is implemented, calculate : (i) Break-even sales of the merged plants and capacity utilization at that stage. (ii) Profit of the merged plant at 80% capacity utilization. (iii) Sales of the merged plant to earn a profit of ₹ 75 lakh. (iv) When the merged plant is working at a capacity to earn a profit of ₹ 75 lakh, what percentage increase in selling price is required to sustain an increase of 5% in fixed overhead.

Explain the concept of 'Management by Exception'. What are its limitations ? Suggest measures to overcome them.

What are the main features of Neo-Classical organisation theory ? Explain the implications of this theory for organisational design.

"With a view to taking advantage of personality characteristics of organisational members, it is desirable to measure their personality." Elucidate this statement and explain the various methods for measuring personality.

"Organisational change has to be managed on technological, social and economic dimensions." Elaborate this statement. What precautions should be taken in a democratic set-up to make a change acceptable to the personnel ?

"Recognition of revenue presents two basic problems, namely timing and measurement". Do you agree? How would you solve these two basic problems ?