C-DRN-N-EPBA ‘arférea @ erarfatet / COMMERCE AND ACCOUNTANCY ‘Wwa-091/ Paper I Raffa ara: attr ae SRTETT 5 : 250 Time allowed : Three Hours Maximum Marks : 250 wea.va & fore faire ager piven seat ear sae 29 # wed Preaterra mrhes sryeer a carayctas OF: Fa ara er ah a eest H fevnbis & cen fe atte sistah cat F ad & ) are wh arr oe eat sat 89 8 1 WF FEM HS iPad ve aT bas as & a Aha Ua IT Grae Pe ae Tea > eH HAT ekes wea/u & aes sere ad ee re B 1 seal & ser se mea fered ar) wale Rarer apa ovis eer sen ren B, sit a eM ay Bre BG PRET (RLA.R,) Gir % Ha-Ha ort Hie ears x Pon aor aie | afafiea mem & aftr area Aah Teer FF TS Te eC Te BIE are TF fre | et Hw shen, oer PaPafee &, ar arqever Pavan arn aeee 1 aR amrerzaes Bi, a) agen rtergT a arr SPR, Ten sae) Ae ike | seat & sad ree Bare | a6) i, ah ven & seat A Tor BOT Te aE TA He @ 1 wer we—TeR oan rch BST Rom 9 wr Se sia a} eye TB Brera AR | Question Paper Specific Instructions Please read each of the following instructions carefully before attempting questions : There are EIGHT questions divided in TWO SECTIONS and printed both in HINDI and in ENGLISH, Candidate has to attempt FIVE questions in all. Questions no. 1 and 8 are compulsory and out of the remaining, THREE are to be attempted choosing at least ONE from each section. The number of marks carried by a question [part is indicated against it Answers must be written in the medium authorized in the Admission Certificate which must be stated clearly on the cover of this Question-cum-Answer (QCA) Booklet in the space provided. No marks will be given for answers written in a medium other than the authorized one. Word limit in questions, wherever specified, should be adhered to. Assumie suitable data, if considered necessary, and indicate the same clearly. Attempts of questions shall be counted in chronological order. Unless struck off, attempt of a question shall be counted even if attempted partly. Any page or portion of the page left blank in the Question-cum-Answer Booklet must be clearly struck off C-DRN-N-EPBA LtwsA f: ttt SECTION A Qi. frafafad & an Gy, st wets ene 150 weal a: ‘Answer the following in about 150 words each’: 10x5=50 (a) Searare atta A wR a BP Feo fre, | 10 (b) (© (@) fe) ‘Accounting is a language of business.’ Comment. irae (Ain) site Rraram (ari) 3 es see 3 eH aT cases (sit aa asfén) x wal Fife | Discuss Zero Base Budgeting as a tool of planning and controlling. 10 mreafadt % wear Hi inedta Garner ua 3 serch we fine Rear ferftae | Write a short note on the provisions of Indian Accounting, Standards regarding Inventories. miu & mata duran & ae ae he, og & mya see FAT G2 What are the main’ Provisions, of Companies Act, 2013 with respect to the audit related to Dividends ? 10 fafa crash? aan 87 des seid 3 eda eve AE | What are the various ‘Heads of Income’ ? Explain briefly each head of income. 10 Soret Aap fa? 3 9B EA & fer, Freafetiae faoh an arse tare Fe a: facta A |: 50 afe Fae Ha a 9,000 erga faci B |e 100 wi sa A EA 6,500 HTEAT fact — | & 150 wf garg = B 12,000 ForEaT Fath feratia, arcafers fash Praferfiaa & agar at: facta -A| = 55 uit gard #1 8 10,000 eareet Fact B| ¢ 95 sft ean A & & 7,000 sereat_ facta —C| = 156 afi garg At ox a 11,000 sara fait A, Bait cA vit gad aera HAM: T 45, & 85 aK e130 I aaa sit areata FATE (a4) ) a de sien at ere BS & fre faa wa (aftéae) aor oferers Fife C-DRN-N-EPBA 2Modern Toys Ltd. had budgeted the following sales for the month of June : Toy-A_ | 9,000 units at € 50 per unit Toy-B | 6,500 units at = 100 per unit, Toy—C | 12,000 units at & 150 per unit As against this, the actual sales were as under : Toy~A_ | 10,000 units at € 55 per unit 7,000 units at & 95 per unit Toy—C | 11,000 units at © 156 per unit The cost per unit of Toy A, B and C was % 45, € 85 and & 130 réspectively. Compute the different variances to explain the difference between the budgeted and actual profit. 20 (b) Fea cere fai, A crt 3 fSectan & Prefered sree sme gE :. aaa Res % BETA fx aa afer ITT z () sea amftat 32% _ (2) yeaa aa 28% _ (3). dae8 softer 12% *1,89,900 4) faa or 5% 58,400 (5) SRR By 2% 66,700 ard at % fire watts Pht & 18,50,000 8 1 omvat Freaferrd ar Alufer wo A Gem 2 (| Seger BH (3-gaa). fA oR | Gi) wafer fast oer oe gare (=H) | (ii) af areas fast wafea fash B10 sfaea Aa an sre, at AAT (ama) | Gy). a ares fat aaa fat a5 sitea A aga a om, 7 ‘ars (BH) | C-DRN-N-EPBA 3Q3. © (a) ‘An analysis of costs of Namya Polymer Ltd. led to the “following information : oo Variable Cost Fixed Cost of Element as % of Sales Cost = (1) Direct Materials 32% - (2) Direct Labour 28% _ (3) Factory Overheads 12%' 1,89,900 (4) Distribution Expenses 5% 58,400 (5) Administration Expenses 2% 66,700 Budgeted Sales for the next year are = 18,50,000. You are required to determine @___ the break-even sales volume. Gi) _ the profit at the budgeted sales volume. iii) the profit, if actual sales drop by 10 percent of budgeted sales. (iv) the profit, if actual sales increase by 5 percent of budgeted sales. 20 afta yea ae 3 wpe afirorentt ar sete ifs | Describe the salient features relating to ‘Value Added Tax’. 10 ‘alte fa. 3 1,00,000 $821 Sat % fore, yeas sex x 100 #1 z site 6% a2 23S fore ores aaa Pu, vA Preaferad % sige Ga 8: were HK T 25 ane KF 34 yr ait afer win aE 35 90,000 dati & fare onder wT ge afk Bt andes eto at ferE ME | 1,000 dat we yer ate sift ain ah visa wh starafiah we BE | TT 1,000 Bert ae wh Paes sitwarfcrart qo aC S are seat seve (wife) at fear wa 1 sa & 500 Seni St PE vem (Hoch Ae.om) J ak WT 90 seas oF: Prifira (Pegg) frat va 1 ahah fr. A (i) das wa (Sa gH) Bi Gy wat we 4H sfafeal Sifsre | C-DRN-N-EPBA 4ABC Ltd. invited applications for 1,00,000 equity shares of £ 100 each at a discount of 6% payable as under : On Application & 25 On Allotment & 34 On First and Final Call & 35 The applications were received for 90,000 shares and all of these were accepted. All payments due were received except the first and final call on 1,000 shares, which were forfeited after doing all legal formalities. 500 shares out of them were re-issued at 7 90 each as fully paid-up. Pass entries in (i) the Cash Book and (ii) Journal Book of ABC Ltd. (o) tet &. fe. & Fe, 4a fH 8 31 ard 2014 a A, fieaferfaa Z : afae = fee z after 30,72,000] ser Ypft 40,00,000 aa 33,00,000| 12% fea-ax 30,00,000 wis (1-4-2013) 7,50,000 | ar—erft arm 2,62,500 ae 8,70,000 | 2a fare 3,70,000 wre 2,50,000 | aeorarat (Aer) 4,00,000 aad atk 4,06,500 | fast (fsa) 41,50,000 aepra ait 75,000 | Brera orrcfeatel 2,50,000 arate amg se 3,92,500 eee _ 35,000 atcatat 18,50,000 fer ora 50,000 aaeftat 9,79,800 ar 68,350 ar 2,02,250 aa eT 21,100 fetat OI Wee 1,80,000 1,24,67,500 1,24,67,500 C-DRN-N-EPBA 5shatter TreTE : Baa a 15% 8 apaee Fh (i) Wf waa 5,000 3B ara F SrferE | (ii) oT ad ar aT oT 8 Gv) Bf art & fare rent H 5% aU Fifa | () 35% AL ea ora a a ae FIP | (vi) 81 AFI, 2014 # Ree = 9,50,000 1 | (ii) rene aft & Fre € 25,000 ee aH ot serH Ee fear a tere | apart & ahaa aa dan aAfare | ‘The following are the balances of Manobar Co. Ltd. as on 31° March, 2014 : Debit z Credit z Premises 30,72,000 [Share Capital 40,00,000 Plant 33,00,000 |12% Debentures —_30,00,000 Stock (1-4-2018) 7,50,000 |Profit and Loss Ale. .2,62,500 Debtors 8,70,000 | Bills Payable 3,70,000 Goodwill 2,50,000 | Creditors 4,00,000 Cash and Bank 4,06,500 | Sales 41,50,000 Calls in Arrear 75,000 | General Reserve 2,50,000 Interim Dividend paid 92,500 |Bad debts provision 35,090 Purchases 18,50,000 Preliminary Expenses 50,000 Wages 9,79,800 General Expenses 68,350 Salaries 2,02,250 Bad debts 21,100 peentore Interest 180,000 1,24,67,500 1,24,67,500 C-DRN-N-EPBA ‘a. (b) () Additional Information : G) — Depreciate Plant by 15%. Gi) Write-off = 5,000-from Preliminary Expenses. (ii) Half year’s Debenture interest due. (iv) Create 5% provision on Debtors for doubtful debts. (v) Provide for Income Tax @ 35%. (vi) Stock on 318* March, 2014 was = 9,50,000. (vii) A claim of & 25,000 for workmen’s compensation is being disputed by the company. Prepare Final Accounts of the company. 30 artameRufen (aia aif) sit sam-crra-Ruter (shee wife) & afta fatter Fifa | Distinguish between Job Costing and Process Costing. * °° - 20 we oft, UH wer si ora at hii At arene FUR a Rater aS fer saan after &t Sent wel ar eee Ae) State the basic conditions of Income-Tax Act to’ determine the residential status of an individual; a company and all other persons. 15 aafral % fag go fate ordi sik go fate oeraft mare Tae Fe ana & walfeat 1 ue Rot tan Fife | Prepare a note on deductions from gross total income in respect of certain incomes and certain payments for individuals. 15 C-DRN-N-EPBA 7wsB SECTION B 95. Prafefad & at Ae, aH weds cere 150 wed A a: Answer the following in about 150 words each : (a) (b) © (dd) () “doh aaa A arate A aati we Fatt a fae area orafer fats & Aece Tat ara 2? Sareea yeaa fare | “Internal Rate of Return Method of Capital budgeting is considered to be superior to Payback Period Method.” — Critically evaluate. at deat A Pete & @ Aa arr gor she (i) Maret TarersTeHss arr som sigan tata atk doh At crete & ata ae Tea 2 ? ‘What is the relationship between leverage and cost of capital as per the ( net income approach and (ii) net opérating income approach of theories of capital structure ? Sei A dr dae A waa we A sal 21 una H deat & ada viger ar aaretearars ypaied Sif | Banks are permitted to enter the insurance sector. Critically evaluate the current scenario of Bancassurance in India. certatcr Ga Ai & Fano, a) mevaet el ci) are emeafaal (ate wee) an fam we saa (anafere fers aera) ait Gi) aearafy fader & Satafiy Fates oe orga (afer fatto cera) we feel feats | Write a note on two important issues of (i) the ratio of current assets to salé (relative asset liquidity) and (ii) the ratio of short-term financing to long-term financing (relative financing liquidity) in formulating working capital policy. recent & oF oiftrnentiane & ces ve Hae sitar 8? What is the justification for the goal of maximising the wealth of shareholders ? (C-DRN-N-EPBA 8 10x5=50 10 10 10 10Q6. (a) Refefes gqea-wai, 32 f 3 feaen, 2012 sit 2013 4 a, a arom AY vere fear ait arise dot a ated At oggeh tan ae 2 : eaare, 2012% | 2013% ais 2,00,000| 2,50,000 arr arreete, 50,000) 60,000 ara 30,500) 30,600 Satate a1 70,000 - fafae aren 1,50,000) 1,35,200 am & fa waur 30,000 35,000 5,30,500| _5,10,800 aRemfet ota | 20s aff ot waa 2,00,000} 1,90,000 waited 1,50,000| 1,69,000 wie 1,00,000) 74,000 fafau aren 80,000) 64,200 aad 500 600 ae _ 8,000 aM (gel) = 5,000 5,30,500) 5,10,800 2013 # aura a ara ad & dur afte arrart Peafefiad 2 : @ 23,000 emrtiar aret fea aT 1 @ Wa wert A viterftat = 50,000 4 wid ng fieeh sere wad a gE 1 atid mg vRcaftal 4 = 20,000 a es, & 25,000 A uaftadt sit gaa = 5,000 Ht a1 Gi) ga at A aeftad & 8,000 F aA 7 | Gv) Weaere a2 ard F areft 1g Hafiz & 12,000 Fi aft | @) ad & dea sawn fear 7a aia Hz & 33,000 | (vi) Wats A FRA ve = 200 Ht eA are omefeshe He a UTA STeAt ME | C-DRN-N-EPBA 9Froni the following Balance Sheets as on December, 2012 and 2013, you are required to prepare a Statement of Funds Flow and Schedule of _ Changes in Working Capital : Liabilities 2012 || 213% Share Capital 2,00,000|" 2,50,000 General Reserve 50,000} 60,000 Profit ahd Loss 30,500]. 30,600 Long Term Loan 70,000), — Sundry Creditors 1,50,000| 1,385,200 Provision for Tax 30,000] ' 35,000 5,30,500] .5,10,800 Assets 012%]. 2013 Land and Building 2,00,000|° 1,90,000 Machinery 1,50,000| 1,69,000 Stock | . 1,00,000/ 74,000 Sundry Debtors . , 80,000} 64,200 Cash 500 600 Bank” . — 8,000 Goodwill - 5,000 : 5,10,800 Additional information during the year ended 2013 is as under : (i) * Dividend of = 23,000 was paid. (ii) Assets of other company were purchased for = 50,000 payable in shares. Assets purchased were Stock of % 20,000, Machinery & 25,000 and Goodwill = 5,000. (iii) Machinery was further purchased for & 8,000. (iv) Depreciation written off on machinery = 12,000. () Income Tax provided during the year € 33,000. (vi) Loss onsale of machine = 200 was written off to General Reserve. 20 C-DRN-N-EPBA 10(b) Brrifataa Ratt HB ells & fore Reda A gow ama (teifeitee she) wer Ofte Hifore, fered fare evar Ae FH Gi) 35% A aL, (i) Sa AL BH A 10%, (ii) Sean 1 sia AeA = 1,000, (iv) aftaaaat — 20 ad : Q) ate feta 10% FA adh mH a8 ord & ait vada aod. (ee BR) 2% #1 (2) aft fade 5% % ag maa oma Baik wade aT 3% EI 20 ad & fee = 1 A aff (asd) wr ada aa ares ait & 1 wT 208 ad & fou adam apa ane fran @ : = 1% few 9% | 10% | 11% anfeét ar adara pa wre 1-20 a4 & FE] 9.199 | 8.514 | 7-963 aia ea ares ae : 2087 6-178 | 0-149 | 0-124 Calculate the explicit cost of debenture for each of the following situations, assuming (i) tax rate of 35%, (ii) coupon rate.of interest 10%, (iii) face value of debenture € 1,000, (iv) maturity - 20 years : (1) If debentures are sold at’a premium of 10% ‘and fldatation costs are 2%, (2) If debentures are sold at a discount of 5% and floatation costs are 3%. Es 20 The present value factér of an annuity of © 1 for 20 years and present value factor of € 1 for the 20" year are as under : For @1 9%. | 10%.) 11% PV factor of Annuity for years1-20 | 9.199 | 8514 | 7-963 PV factor for the year : 20" 0-178. | 0:149 | 0-124 () fae at an & fats sete & ara sage fe Air gata (wie ‘tegratin) a en meri 2? ‘What is Corporate Restructuring with special reference to Mergers and Acquisitions ? 10 C-DRN-N-EPBA uQi. vag fa. a gern, San Ps ae 91-12-2018 a en, Frrafafiad BITE: ARA-75 (31-12-2013 &t) eared = vhenfat ‘Sead Sh (= 10 sf Sz) 60,000) frac eng aitaesferat 1,50,000 10% Arafat a1 80,000 arg siarafrat 50,000 safeentta sah 20,000 ; are] eT 40,000 ~ 2,00,000| , 2,00,000 arooh ar ga aha qarad agua (alate tei) 3.0 8 | geht fad (Ga) wera APT = 1,00,000 & | echt see waTerA aTTal ar Feb AA AANA 40% B | HA HT 35% Z| @ vara stata, facta ciate sik aaa’ ciate At arr om ofereT Ai | : (i). af uf dex arts EPS) (#) & 3 ohh (@) = 0 =) A, Aaa otk at 8 vga ameh (EBIT) } dared eR Sr Frater sifere | Rudra Ltd.’s Balance Sheet as on 31-12-2013 is as under : Balance Sheet (As on 31-12-2013) Liabilities = Assets = ioe ca 60,000 Net Fixed Assets 1,50,000 10% Long-term Loan 80,000 | Current Assets 50,000 Retained Earnings 20,000 , Current Liabilities 40,000 2,00,000 > 2,00,000 The company’s total assets turnover ratio is 3-0. Its fixed operating costs are © 1,00,000. Its variable operating costs to sales ratio is 40%. The income tax rate is 35%. . ( — Caleulate the Degree of operating leverage, financial leverage and combined leverage. og (ii) Determine the likely level of EBIT if EPS is (a) @3 and (b) & 0 (zero). C-DRN-N-EPBA 2 , 20(b) © A cen tare fa. wr vfs det ana = 20 oft dar 2 Ser A aatee A arate a (gere t2 ats fed) 12 wfaea 2 atk Yow & 10 wher 3 laren & cringe ar Fee Sea ee Peafefiad a Frater site : @) BH ar year oa TR (8-onse) ayaa @) aT of Rae A Fae Earnings per share of Shree Laxmi Textile Ltd. is @ 20 per share. The company has an internal rate of return of 12 percent and the capitalisation rate is 10 percent. Determine the following using Walter's Dividend Model : (Optimum payout ratio of the firm. (ii) The price of the share at this payout. feafetaa arent a eta we ee, Ae Re me Ge HT Ae aera Sah atte Quad = | atari = Sra ot 2,00,000) daa aft sua ? wfaenke asa 3,00,000| =Tetqeft 2 Feoeral (eR) aa AF | Bae ? wad ? oa oa RT TTTETE @ Fawn sk faa mfsaa (arate) a AMT : 0-5: 1-0 Gi) pet oReaheel ve waa : 2 Gi) Re ATH (AA) STEM : 30% (iv) 3ftra Hen safer (360 fea wha ad oe amenfta) : 40 fea ww) aera warad (28 ne are A arra atk ad Fa Te area HK sma) : 3 aT (i) WeaTe aA (Bs ez Bh) : 0-75 1-0 C-DRN-N-EPBA 13 10Qs. (b) () Using the following information, complete the Balance Sheet given below : Balance Sheet Capital and Liabilities = Assets z Equity Capital 2,00,000 | Plant and Equipments? Retained Earnings 3,00,000 | Inventory 2 Creditors and Bills Payable 2 | Debtors ? Cash 2 Total Total Other Information : (i) Total debt to Net worth Ratio is : 0:5: 1.0 (i) Turnover on Total Assets : 2 Gii) Gross Profit margin : 30% (iv) Average Collection Period (based on 360 days year) : 40 Days (v) Inventory Turnover (based on cost of goods sold and year end inventory) : 3 times (vi) Acid Test Ratio : 0-75 : 1-0 20 @ Fal arm sik Gi) HA a seat (Setew) H dae F weirs atk fEdtaw arent < siemeit a1 ameter agaist afr | Critically evaluate the functioning of primary and secondary markets in relation to (i) money market and (ii) capital market instruments. 20 vitfiar Yoh (dat Sher) uneaite facta @ fea wer fra @ 2 cies Gt faftral & fata van ero 2 How is venture capital different from traditional financing ? What are the different types of venture capital funds ? 10 fad 4% sits gta sik @ seet site Af ait Gi) seh gan ifs ar amretterrer yeaa Aa | itically evaluate Reserve Bank of India and (i) its monetary policy and ts credit policy. . 20 C-DRN-N-EPBA 4