IAS Mains Commerce 2003

Time Allowed: 3 hours Maximum Marks: 300

Candidates should attempt Questions I and 5 which are compulsory, and any three of the remaining questions selecting at least one question from each Section.
Paper I
Section A

Answer any three of the following questions. The answer of each question should not exceed 200 words:

The financial books have a specific purpose to serve and the information available through them has to be supplemented through other records Discuss the necessity of caving cost records .

What is Amalgamation of Companies? How does it differ from Absorption and Reconstruction of Companies

Discuss the powers of Incomes Tax officers .

How will you audit the cash transactions of a Company

Answer the following

It is said that the success of a Standard Cost Accountancy System is dependent on the extent of responsibility which the top management assumes in correcting the conditions which cause variance from standards Discuss the extent to which this responsibility should be delegated to lower levels and outline a method by which the performance of the individuals responsible can be watched.

A factory manufacturing readymade garments uses the cut pieces of cloth to manufacture dolls. The following cost information has been prepared to show that the manufacture of dolls results in a loss of Rs. 500 Hence there is a suggestion to discontinue the manufacture of dolls. What is your advice? Give reasons. Note The cut pieces used in dolls will fetch a waste value of Rs. 000, if sold

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Answer the following questions

Write a note on the powers and duties of a company auditor .

The actual production was only 60 units, materials used 40 units of X and 60 units of Y. Calculate material yield variance .



Answer the following questions

Explain the term Budgetary Control. On what factors does the success of such control depend

Find out the income from house property chargeable to tax for the assessment year 2002 03 in the following cases
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Section B

Answer any three of the following in not more than 200 words each:

Wealth maximization is the main function of financial management. Comment .

Define lease financing

What is a new issue market

Write a note on trading on equity .

Answer the following questions

Explain the term Capital Structure. What should generally be the features of an appropriate capital structure for a company

A Company offers to its shareholders the right to buy 2 shares of Rs. 130 each for every five share of Rs. 100 each held in the company. The market value of the share is Rs. 200 each.

Calculate the value of Right .

Answer the following questions

Explain the concept of Venture Capital and discuss its salient features in the Indian Context .

Discuss the powers and role of Securities and Exchange Board of India .

Candidates should attempt Questions I and 5 which are compulsory, and any three of the remaining questions selecting at least one question from each Section.