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SUBJECT : MANAGEMENT ACCOUNTANCYTotal Marks : 80N.B. : 1) All questions are compulsory2) All questions carry equal marks.Answer the following questions :1) Why is Accounting regarded as an aid to Management (Marks : 15)2) Explain the term convention of disclosure (Marks : 10)3) Differentiate between Casn and Mercantile system of Accounting (Marks : 10)4) Explain the term Accounting Cycle (Marks : 15)5) Explain the rules regarding posting of transactions into the Ledger (Marks : 15)6) What are the precautions to be taken by an investor to protect himself against the possible misuseof ratios by a company. (Marks : 15)

SUBJECT : COST ACCOUNTINGTotal Marks : 80N.B. : 1) All questions are compulsory2) All questions carry equal marks.Q1) Which are the different ways by which the cost can be analysed?Q2) Define Budgetary Control and explain the pre-requisites for its successful introduction andimplementation?Q3) Standard costing is a valuable aid to management discuss. State in brief limitation of standardcosting?Q4) Explain the importance of the Marginal cost technique in managerial decision making?Q5) What are the advantages of cost audit?Q6) Enumerate the steps involved in the installation of budgetary control system in an organization?Q7) Differentiate between idle cost and standard cost?Q8) How the total cost, variable cost and marginal cost differ from each other?

SUBJECT : AUDITINGCOURSE : CCA Total Marks : 80N.B. : 1) All questions are compulsory2) All questions carry equal marks.Q1) Focus of the auditor is no longer on the routine audit but rendering value added services like

cost efficiency and decision making. Critically examine the statement with particular emphasison the changing computer environment?Q2) How can the auditor be useful in achieving the objectives of a Charitable Trust or Society and aCo-operative Society? What is the legal position under the relevant status?Q3) It is the job of the directors to prepare the accounts of a company, auditor only reports on it.Elucidate and describe the types of audit report?Q4) The thrust area of an auditor is “True and Fair” and not “True and Correct” Elucidate in thelight of statutory provisions under the Companies Act 1956.Q5) Discuss the three types of audits, which although not mandatory under the Income Tax Act1961, are get done by the assessee to avail certain benefits under the act?

Q6) Examine the changes brought about in the role of an auditor with the growth of informationtechnology and rapidly changing computer environment?Q7) The auditor only audits the books of account, he does not guarantee them. Elucidate.Q8) Tax auditor is a Catalyst of Revenue Collection, function of the State on the one hand, and aConsultant to the tax payer on the other, discuss?Q9) Who can be appointed as an auditor of co-operative societies? What are the rights and duties ofauditor under Maharashtra Co-operative Societies Act?Q10) An auditor is protected from unceremonial removal from office enabling him to maintain hisindependence? Do you agree with the statement? If so discuss the position of the auditor inthis regard in the light of statutory provisions under the Companies Act 1956?

SUBJECT : ADVANCED ACCOUNTINGTotal Marks : 80N.B. : 1) All questions are compulsory2) All questions carry equal marks.Q-1) Briefly explain the followingi) Dual aspect conceptii) Realisation conceptQ-2) Distinguish between the following:Actual basis of accounting and cash basis of accounting?Q-3) What is depreciation? State briefly the different causes of depreciation?Q-4) Distinguish between the following :`Double Entry System’ and `Single Entry System’

Q-5) Distinguish between the followingSale and ConsignmentQ-6) What do you mean by Self balancing ledgers?Discuss the main advantages of self balancing ledgers?

Q-7) Explain the following.i) Adjustment Entriesii) Capital expenditure and Revenue expenditureQ-8) What are the different causes of discrepancy between bank balances as per cash book and passbook?

SUBJECT: ACCOUNTINGTotal Marks: 80N.B. : 1) All questions are compulsoryQ1) ABC Ltd. Produces room coolers. The company is considering whether it should continue tomanufacture air circulating fans itself or purchase them from outside. Its annual requirement is25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition, ABC Ltdwill have to incur costs of Rs 1.50 per unit for freight and Rs 10,000 per year for quality inspection,storing etc of the product.{25 Marks }In the most recent year ABC Ltd. Produced 25000 fans at the following total cost :Material Rs. 50,00,000Labour Rs. 20,00,000Supervision & other indirect labour Rs. 2,00,000Power and Light Rs. 50,000Depreciation Rs. 20,000Factory Rent Rs. 5,000Supplies Rs. 75,000Power and light includes Rs 20,000 for general heating and lighting, which is an allocation based onthe light points. Indirect labour is attributed mainly to the manufacturing of fans. About 75% of itcan be dispensed with along with direct labour if manufacturing is discontinued. However, thesupervisor who receives annual salary of Rs 75,000 will have to be retained. The machines used formanufacturing fans which have a book value of Rs 3,00,000 can be sold for Rs 1,25,000 and the

amount realized can be invested at 15% return. Factory rent is allocated on the basis of area, and thecompany is not able to see an alternative use for the space which would be released. Should ABCLtd. Manufacture the fans or buy them?

Q2) Usha Company produces three consumer products : P, Q and R. The management of thecompany wants to determine the most profitable mix. The cost accountant has supplied the followingdata. {30 Marks }Usha Company : Sales and Cost DataDescription Product TotalP Q RMaterial Cost per unitQuantity (Kg) 1.0 1.2 1.4Rate per Kg (Rs) 50 50 50Cost per unit (Rs) 50 60 70Labour Cost per unit 30 90 90Variable Overheads per unit 15 10 25Fixed Overheads (Rs .000) 9,175Current Sales (Units ,000) 100 50 60 210Projected Sales (Units ,000) 109 55 125 289Selling Price per unit (Rs) 150 200 270Raw material used by the firm is in short supply and the firm can expect a maximum supply of 350lakh kg for next year. Is the company’s projected sales mix most profitable or can it be changed forthe better?

Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers andtextiles. The summary of the company’s profit is given below : {25 Marks }(Rs/Crore)Cement Fertilizer Textiles TotalSales 20.0 12.0 18.0 50.0Less : Variable Cost 8.0 9.6 5.4 23.0Contribution 12.0 2.4 12.6 27.0Less : Fixed Cost (allocated todivisions in proportion tovolumes of Sales)8.0 4.8 7.2 20.0Profit (Loss) 4.0 (2.4) 5.4 7.0

After allocating the company’s fixed overheads to products the Fertilizers, division incurs a loss ofRs 2.4 crore. Should the company drop this division?

SUBJECT : AUDITINGTotal Marks : 80N.B. : 1) All questions carry equal marks2) Answer any four questionsCASE STUDIESQ1) H.W.P. Private Ltd. Is having only two members H and W. During the audit of accounts for theyear ended 31st March 2000, you as a auditor find that :a) H, who is incharge of purchases has introduced fictitious purchase bills of Rs 50 lakhs.b) W, who is incharge of sales has sold goods worth Rs 1 crore without bringing the same in thebooks of accounts. You raise the matter with H and W in their capacity as directors. Theycontest that as this is a position known to them and within their own fold, you should not reportthe same under the Company's Act 1956. Discuss whether the above arguments are acceptableunder the Company's Act 1956 for non-reporting?Q2) As an auditor, how would you react to the following situation? The company producedphotocopies of fixed deposit receipts as the original receipts were kept in the iron safe of thedirector finance who was presently out of the country on company business?

Q3) ABC Private Limited is engaged in the wholesale business of buying and selling silk sarees.The accounts are maintained under the Companies Act from 1st October to 30th September eachyear. The Chief Accountant of the company is requesting the tax auditor to conduct tax auditU/S 44 AB of the I. T. Act for the period for which accounts have been maintained under theCompany's Act. As the tax auditor of ABC Private Limited, how will you react to the ChiefAccountant request?Q4) Comment : The Auditor is responsible for failure to disclose the affairs of the company kept outof books and concealed from him.Q5) Comment : Balance confirmations from debtors/creditors can only be obtained for balancesstanding in their accounts at the year end?

Q6) Give your comments and observations on the following many cheques have been received bythe auditor on the last day of the year, but not yet deposted with the bank?

SUBJECT : COST ACCOUNTINGTotal Marks : 80Select any one out of 4 choices give below (2 Marks each X 10 ) (20 Marks)Q1) Which kind of budgeting does not take into consideration previous figures as base.a) Zero based budgetingb) Sales budgetingc) Fixed budgetingd) Flexible budgetingQ2) Which is the term used for internal transfers between profit centres.a) Process costingb) Standard costingc) Transfer pricingd) Marginal costing.Q3) Labour cost variance means difference betweena) (Std. Time x Std Rate) — (Actual Time x Act Rate)b) (Std. Time x Act Rate) — (Act Time x Act Rate)c) (Std. Time x Std Rate) — (Act Time x Std Rate)d) (Std. Time x Act Rate) — (Std Time x Std Rate)Q4) Which of the factor is not relevant for cash flow :a) Depreciationb) Asset purchased.c) Cash purchase maded) Cash sales madeQ5) Calculate Fixed Cost when :P. V. Ratio = 50%Variable cost = Rs 10,000Break even point = Rs 15,000Q6) Calculate Break even point in units.

When –Fixed cost = Rs 20,000Total units sold = 10,000 Nos.Contribution per unit = Rs 2 per unit.Q7) What is the formula to calculate current ratio.Q8) Which method values stock at a variable cost level.a) Absorption costingb) Marginal costingc) Target costingd) Activity based costing.Q9) Which of following plan summarises budget.a) Master budgetb) Zero based budgetingc) Fixed budget

d) Flexible budgetQ10) In which form of costing selling price is finalized first.a) Target costingb) Absorption costingc) Total Quality Managementd) Activity based CostingQ11) Differentiate between Absorption costing and Marginal costing. (5 Marks)

Q12) Expenses of budgeted production of 20,000 units in Factory is as follows. (15 Marks)Rs. Per UnitMaterial 140Labour 50Variable Overheads 40Fixed Overheads 20Variable Expenses (Direct) 10Selling Expenses (10% Fixed) 26Distribution Expenses (20% Fixed) 14Admin Expenses 10Prepare flexible budget for production of 16,000 units and 12,000 units.Also find out cost per unit at each level.

Q13) Following details of A G Ltd are furnished for year 1996. (15 Marks)First 6 month Balance 6 monthsSales 45,000 50,000Total Cost 40,000 43,000

Assume there is no change in price and variable cost and fixed expenses are incurred equally intwo half year periods. Calculate for year 1996.1) Profit volume ratio.2) Fixed expenses.3) Break even sales4) Margin of safety.Q14) Labour budget of company for week is as follows : (15 Marks)20 men @ 50 paise p hr for 40 hr = 40040 men @ 30 paise p hr for 40 hrs = 480_______880======Actual Labour was as follows :30 men @ 50 paise for 40 hr = 60030 men @ 35 paise for 40 hrs = 420_______

1020======Analyse Labour Variances

Q15) Calculate break even point (10 Marks)1) S. price in Rs 202) Manufacturing vari cost Rs 10.3) Selling variable cost Rs 5.4) Fixed overheads = Rs 5,00,0005) Selling overheads = Rs 2,00,000

SUBJECT : TAXATIONTotal Marks : 80Instructions:a) Each question carries 20 marksb) Make assumptions wherever necessaryQ1) a) Mr. Jayant an Indian Citizen, furnishes the following particulars of his income earned during theprevious year relevant to assessment year 2008-09.Sr.no Particulars Rs.1. Interest on Nepal Development Bond (1/3 received in India) 21,0002. Income from Agriculture in Bangladesh 40,0003. Rent from Property in Japan received outside India 10,0004. Income earned from Business in London which is controlled from Delhi(Rs. 15,000 received in India35,0005. Interest paid by an Indian company but received outside India 9,0006. Past untaxed profit brought to India 33,0007. Profit from a business in Thane and managed from outside India 50,0008. Profit on sale of building in Mumbai but received in Sri Lanka 40,0009. Pension from an Indian employer in India received in Rangoon 30,000Find out his gross total income if he is i) Resident and ordinarily resident. ii) Resident but not ordinarilyresident. iii) Non- resident in India for the assessment year 2008-09. (15 Marks)b) Mr Chetan who is an Indian citizen returned to India on 1st July 2007 on a visit. He left India on 25September 2007. Prior to 1st April 2007 he was in India for more than 365days during the preceding fouryears 2003-04 to 2006-07. What is his residential status for the assessment year 2008-09? (5 Marks)Q2) Mrs Amrita joined XYZ Ltd., New Delhi, on 1st April 1982 as a Director. She receives the following

emoluments during the previous year ending 31st March 2008. Determine the taxable income of Mrs. Amritafor the assessment year 2008-09, taking into account the following information: (20 Marks)

a) Salary received Rs 16,000b) Bonus received Rs 2,000c) House Rent allowance Rs 6,800d) Salary in lieu of leave Rs 12,000e) Entertainment allowance Rs 3,000f) Company provides free gas and electricity(cost) Rs 6,000g) Domestic servant (not being sweeper, watchmen orgardener) paid for by the company Rs 12,800h) Free education for her two sons in a schoolmaintained by the company (cost) Rs 12,000i) Free lunch in office Rs 10,000j) Salary of cook Rs 12,000Cook is engaged by Mrs. Amrita. She contributes i) Rs 13,500 towards contribution to a recognized Providentfund and ii) Insurance premium of Rs 15,000 on a policy of Rs 1,40,000 taken on her own life.Her income from other sources is Rs 26,000Besides, Mrs Amrita owns the following properties:a) House –I purchased on 1st July 2007 is given on rent (rent being Rs 2,000 per month). Construction ofhouse was completed on 1st June 2007.b) House –II constructed in 1973 is self –occupied. Expenses incurred for the two houses are as follows:House I House IIMuncipal tax paid on 31st March 2008 2,100 6,200Lease Rent 200 1,200Fire insurance 2,300 600Repairs 200 -Collection charges 50 -Q3)

ended 31st March, 2008 : (20 Marks)Particulars Rs Particulars RsTo Salaries 56,000 By Gross profit 3,40,000To Travelling expenses 14,000 By Subsidies and cashTo Embezzlement of cash 10,000 Assistance from govt. 66,000To Professional Tax 1,500 By Export Award receivedTo Insurance on health From Government 42,000Of employees 2,250 By amount withdrawn from

To wealth tax 9,750 public provident fund A/c 52,000To Diwali expenses 4,350 By Dividend from Indian Cos. 1,00,000To telephone & telex charges 5.650To Advertisement 17,500To depreciation 10,000To Interest on loan 15,000To Guest house expenses 8,000To expenses on scientificResearch 2,12,000To Net profit 2,34,0006,00,000 6,00,000Following additional information has been provided :a) Salary includes payment of Rs 20,000 out of India on which no tax has been deducted at source.b) The expenditure on scientific research allowable under the Income Tax Act is Rs 2,04,500.c) Travelling expenses include Rs 2,400 incurred on travelling to Allahabad to attend Kumbhmela.d) Diwali expenses include Rs 1,000 paid to son for purchase of cycle.e) Interest on loan is paid outside India on which no tax has been deducted at source.f) Advertisement expenses include Rs 2,500 on advertisement in a brochure published by a political partyand remaining expenses of Rs 15,000 the benefits of which will accrue for the period of 5 years in all.g) Depreciation allowable as per Income tax is Rs 8,650.Compute the taxable income from business of Mr. Narayan Vyas for the assessment year 2008-09.

the previous year 2007-08: (20 Marks)Name of the Asset Cost of acquisition Rs. FMV on 1st April 1981 Rs. Full value ofconsideration Rs.Goodwill of a business --- 40,000 4,00,000Tenancy rights of acommercial building---- 1,00,000 6,00,000Route permit ---- 50,000 5,00,000Shares acquired in 1978 70,000 50,000 4,00,000ii) Would your answer change if the Goodwill transferred is of a profession instead of business?iii) What shall be your answer if the shares are sold through a recognized stock exchange on 1st December2007Q4b) The following incomes are received by Mr. Mohan during financial year 2007-08

a) Director’s fees Rs 2,000b) Income from agricultural land in Pakistan Rs 5,000c) Ground rent for land in Pathankot Rs 10,000d) Interest on Postal Savings bank A/c Rs 100e) Interest on deposits with Industrial Finance Corporation of India Rs 500f) Dividend from a foreign company Rs 700g) Rent from sub-letting a house Rs 26,250h) Rent payable by Mr. Mohan for the sub-let house Rs 12,000i) Other expenses on sub-let-house Rs 1,000j) Winnings from horse – race (Gross) Rs 12,300k) Interest on securities (Gross) Rs 4,000You are required to calculate Income from other sources of Mr. Mohan for the assessment year 2008-09