Still i need a little help, :) this site is the best

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priyanka

81 Points Posted on 22 April 2011

hey guys, this is the best site ever!

the topics i posted got excellent replies and people are really helpful
i even followed people's advices for writing the test papers! and it really helped

i would ask one last help if anyone could help me with the

economic and labour law-2010,

company acc - 2008,

tax- 2011.

can mail me on

enter_wilderness @ yahoo.com

thanx

Replies (5)

priyanka

81 Points Posted on 24 April 2011

no reply..

Guest

Posted on 24 April 2011

hai priyanka ji..i posted ur article so many place..mee too waitng for the same reply..

U S Sharma

glidor@gmail.com

21670 Points Posted on 24 April 2011

This Paper has 57 answerable questions with 0 answered.

Roll No………
Time allowed : 3 hours	Maximum marks : 100
Total number of questions : 8	Total number of printed pages : 6

PART — A
(Answer Question No. 1 which is COMPULSORY and any three of the rest from this part)

PART — A

(Answer Question No. 1 which is COMPULSORY
and any three of the rest from this part)

1.	With reference to the relevant legal enactments, write short notes on any five of the following :
	(i)	Predatory pricing		(0)
	(ii)	Declarations for export of goods and services		(0)
	(iii)	Standards for emission of environmental pollutants		(0)
	(iv)	Restoration of lapsed patents		(0)
	(v)	Term of copyright		(0)
	(vi)	Process of money laundering		(0)
	(vii)	‘Complainant’ under the Consumer Protection Act, 1986.		(0)
	(3 marks each)
2.	State, with reasons in brief, whether the following statements are true or false. Attempt any five :
	(i)	Small scale units are free from locational restrictions.		(0)
	(ii)	A SEZ unit may opt out of the SEZ scheme at any time.		(0)
	(iii)	The manufacture of items reserved for the small scale sector can also be taken up by non–small scale units.		(0)
	(iv)	Patents are granted merely to enable the patentees to enjoy a monopoly for the importation of the patented article.		(0)
	(v)	The jurisdiction of the State Consumer Disputes Redressal Commission is only appellate or revisional.		(0)
	(vi)	Retail package includes a package for retail sales to ultimate consumers who may be institutional or industrial consumers.		(0)
	(3 marks each)
3.	(a)	Distinguish between any two of the following :
		(i)	‘Foreign exchange’ and ‘foreign security’.	(0)
		(ii)	‘Trade mark’ and ‘certification trade mark’.	(0)
		(iii)	‘Automatic route’ and ‘approval route’ under the FDI policy.	(0)
	(5 marks each)
	(b)	Re–write the following sentences after filling–in the blank spaces with appropriate word(s)/figure(s) :
		(i)	The foreign trade policy allows export proceeds to be realised within __________ months.	(0)
		(ii)	The prior approval of RBI is necessary to make overseas donation exceeding US $ ________ per remitter per annum.	(0)
		(iii)	Essential commodity is a commodity specified in _________ to the Essential Commodities Act, 1955.	(0)
		(iv)	The Consumer Disputes Redressal Forum, the State Commission or the National Commission shall not admit a complaint unless it is filed, within ________ year(s) from the date on which the cause of action has arisen.	(0)
		(v)	Authorised person under the Foreign Exchange Management Act, 1999 includes an authorised dealer, __________, off-shore banking unit or any other person for the time being authorised to deal with foreign exchange or foreign security.	(0)
	(1 mark each)
4.	(a)	With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder, advise on the following :
		(i)	Shyam, an Indian businessman, is interested in remitting US $8,000 for purchase of trade mark/franchise in India.	(0)
		(ii)	Suresh, a person resident in India, desires to take a life insurance policy from a foreign insurance company, the yearly premium of which is US $25,000.	(0)
		(iii)	Desire Ltd., a company incorporated outside India, wants to buy shares up to 10% of paid–up capital of an Indian company engaged in infrastructure development.	(0)
		(iv)	Aadarsh Ltd., an Indian company, wants to issue FCCBs for the purpose of investing in the stock market.	(0)
		(v)	An Indian company engaged in software business intends to adjust the value of its exports towards the value of imported items.	(0)
	(1 mark each)
	(b)	Explain the provisions for confiscation of an essential commodity seized in contravention of the Essential Commodities Act, 1955.		(0)
	(5 marks)
	(c)	Prakash, aged 37 years, was travelling from Mumbai to Delhi by air. When he occupied his seat in the aircraft, an announcement was made that his luggage was lying on the ground unidentified and that he should disembark to identify his luggage. When Prakash was stepping down from the aircraft, the ladder was suddenly removed as a result of which he fell down sustaining bodily injuries causing 10% disablement. As against the claim of Rs.10 lakh filed by Prakash towards compensation, the airlines was willing to pay Rs.40,000 which according to it was the maximum statutory liability of the airlines under the Carriage by Air Act, 1972. However, the State Commission awarded Rs.4 lakh towards compensation and an additional Rs.1 lakh for mental agony and distress plus costs. Is the order passed by the State Commission justified ? If so, give reasons and refer to the decided case law.		(0)
	(5 marks)
5.	(a)	How is the property involved in money laundering dealt with under the Prevention of Money Laundering Act, 2002 ?		(0)
	(5 marks)
	(b)	What are the exemptions to the prohibition of acceptance of foreign contribution under the Foreign Contribution (Regulation) Act, 1976 ?		(0)
	(5 marks)
	(c)	Write a note on recent government initiatives to contain environmental pollution in the country.		(0)
	(5 marks)

PART — B
(Answer ANY TWO questions from this part.)

PART — B

(Answer ANY TWO questions from this part.)

Write notes on any four of the following :

(i)

Provisions relating to ‘hazardous processes’ under the Factories Act, 1948.

(0)

(ii)

The concept of ‘compensation’ under the Workmen’s Compensation Act, 1923.

(0)

(iii)

Concept of ‘continuous service’ under the Payment of Gratuity Act, 1972.

(0)

(iv)

Employees‘ Insurance Court constituted under the Employees’ State Insurance Act, 1948.

(0)

(v)

Procedure for fixing and revising minimum wages under the Minimum Wages Act, 1948.

(0)

(vi)

Unfair labour practices on the part of workmen and trade unions of workmen under the Industrial Disputes Act, 1947.

(0)

(5 marks each)

(a)

Distinguish between any two of the following :

(i)

‘Award’ and ‘settlement’ under the Industrial Disputes Act, 1947.

(0)

(ii)

‘Partial disablement’ and ‘total disablement’ under the Workmen’s Compensation Act, 1923.

(0)

(iii)

‘Draft standing orders’ and ‘certified standing orders’ under the Industrial Employment (Standing Orders) Act, 1946.

(0)

(5 marks each)

(b)

Re–write the following sentences after filling–in the blank spaces with appropriate word(s)/figure(s) :

(i)

The ESI corporation to function efficiently has been provided with two wings namely _________ and Medical Benefit Council.

(0)

(ii)

A workman is not entitled to apply under the Workmen’s Compensation Act, 1923, if he seeks remedy for grant of compensation in a _____________.

(0)

(iii)

The Contract Labour (Regulation and Abolition) Act, 1970 shall not apply to establishments in which work is of ______________.

(0)

(iv)

An ‘arbitrator’ under the Industrial Disputes Act, 1947 includes an _____________.

(0)

(v)

The rate of contribution towards the Employees’ State Insurance Fund is ________% and __________% of employees’ wages by the employers and employees respectively.

(0)

(1 mark each)

(c)

Choose the most appropriate answer from the given options in respect of the following :

(i)

The employer of an establishment to which the Industrial Employment (Standing Orders) Act, 1946 applies shall submit to the certifying officer draft standing orders proposed by him for adoption in that establishment within –

(a)	6 Months
(b)	4 Months
(c)	30 Days
(d)	2 Months.

from the date on which the Act becomes applicable to the establishment.

(0)

(ii)

When a new manager is appointed for a factory, the occupier shall send to the Inspector of Factories a notice in writing within –

(a)	7 Days
(b)	15 Days
(c)	30 Days
(d)	45 Days.

(0)

(iii)

‘Basic wages’ under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 does not include –

(a)	Emoluments earned by an employee while on leave
(b)	Emoluments earned by an employee while on holiday with wages
(c)	The cash value of any food concession
(d)	Emoluments earned by an employee which are payable in cash.

(0)

(iv)

‘Dependent’ under the Employees’ State Insurance Act, 1948 does not mean any of the following relatives of a deceased insured person –

(a)	A widowed mother
(b)	A widowed grand–mother
(c)	A widowed daughter–in–law
(d)	A widow.

(0)

(v)

An employee is entitled to receive bonus provided he has worked in an accounting year in the establishment for not less than –

(a)	30 Working days
(b)	One year
(c)	6 Months
(d)	8 Months.

(0)

(1 mark each)

Attempt any five of the following stating relevant legal provisions and decided case law, if any :

(i)

Suresh retired on attaining the age of superannuation. After retirement, it was noticed that he had misappropriated travelling allowance drawn by him. The employer decided to deduct the misappropriated amount from the gratuity payable to him. Is the action of the employer legally tenable ?

(0)

(ii)

Growell Ltd. declared minimum bonus in an accounting year as there was no allocable surplus. However, the workmen claimed that the management was liable to pay higher amount of bonus in view of the terms of settlement entered into between the workmen and the management. Is the plea of the workmen tenable in law ?

(0)

(iii)

Mohan has been working in a foundry for the last 20 years. Recently, it was found that he was suffering from diabetes. Based on that, the management terminated his services. Does the action of the management tantamount to retrenchment ?

(0)

(iv)

Naresh, a workman, abused his supervisor in a public place outside the factory premises, for having refused to sanction leave on compassionate grounds. On a complaint lodged by the supervisor, the management initiated disciplinary proceedings against Naresh for the act of misconduct. Naresh contended that his action did not amount to misconduct. Is his contention tenable ?

(0)

(v)

Galaxy Hotels Ltd., located in Aurangabad (Maharashtra), is covered under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Recently, it started a new restaurant in Belgaum (Karnataka) where 15 employees were employed. The provident fund authorities demanded contribution in respect of 15 employees in the new establishment contending that it is a part of Galaxy Hotels Ltd. Is the demand of provident fund authorities justified ?

(0)

(vi)

Sajid lost his mental balance as a result of an injury by accident and committed suicide. Is the employer liable to pay compensation under the Workmen’s Compensation Act, 1923 ?

(0)

(vii)

A copy of the memorandum of settlement was not despatched by the conciliation officer to the appropriate government. Will the settlement be treated as invalid ? Give reasons.

(0)

(4 marks each)

U S Sharma

glidor@gmail.com

21670 Points Posted on 24 April 2011

This Paper has 53 answerable questions with 0 answered.

Roll No…………
Time allowed : 3 hours	Maximum marks : 100
Total number of questions : 8	Total number of printed pages : 5

PART — A
(Answer Question No. 1 which is COMPULSORY and any two of the rest from this part)

PART — A

(Answer Question No. 1 which is COMPULSORY and
any two of the rest from this part)

(a)

State, with reasons in brief, whether the following statements are correct or incorrect :

(i)

The bonus share issue cannot be made unless the existing partly–paid shares are fully paid–up.

(0)

(ii)

In India, corporate financial statements in general do not include a cash flow statement to explain movement of cash during the accounting period.

(0)

(iii)

A company is not under any legal obligation to make good its past losses before distributing its current profitsas dividends.

(0)

(iv)

The Accounting Standard-21 mandates an Indian company to present consolidated financial statements.

(0)

(v)

In India, corporate financial statements are prepared recognising legal forms of the transaction and ignoring the substance.

(0)

(2 marks each)

(b)

Choose the most appropriate answer from the given options in respect of the following :

(i)

Securities premium money can be used for ––
(a) Payment of dividend
(b) Writing off goodwill
(c) Issuance of fully paid bonus shares
(d) None of the above.

(0)

(ii)

Loss suffered from the date of acquisition of business to the date of incorporation should be debited to ––
(a) Goodwill account
(b) Profit and loss account
(c) Capital reserve account
(d) Capital reduction account.

(0)

(iii)

Pre–paid expenses are shown in balance sheet as ––
(a) Current assets
(b) Intangible assets
(c) Wasting assets
(d) Fixed assets.

(0)

(iv)

The balance of forfeited shares after reissue of the same is transferred to –
(a) Capital reserve account
(b) Share capital account
(c) Profit and loss account
(d) Debenture redemption fund account.

(0)

(v)

Divisible profits include ––
(a) General reserves
(b) Profit on revaluation of assets
(c) Profit prior to incorporation period
(d) Capital reserve.

(0)

(1 mark each)

(c)

Re–write the following sentences after filling–up the blank spaces with appropriate word(s)/figure(s):

(i)

Accounting as a ‘language of business’ communicates the financial results of corporate enterprise to various________ by means of financial statements.

(0)

(ii)

If a company offers to its equity shareholders the right to buy one equity share of Rs.100 each at Rs.120 for every 4 equity share of Rs.100 each and the market value of a share is Rs.180, then the value of the right is Rs.________ .

(0)

(iii)

The bonus share can be issued only if _________ of the company permits such an issue.

(0)

(iv)

Accounting Standard–17: Segment reporting is mandatory for all commercial, industrial and business reporting corporate enterprises, whose turnover for the accounting period exceeds Rs. _______.

(0)

(v)

Consolidated financial statements are presented by a _______ company to provide financial information about the economic activities of its group.

(0)

(1 mark each)

(a)

Write short notes on any two of the following :

(i)

Objectives of international accounting standards.

(0)

(ii)

Loss on issue of debentures.

(0)

(iii)

Firm underwriting.

(0)

(3 marks each)

(b)

Following is the balance sheet of Anupam Ltd. as on 31st March, 2008 :

Liabilities		Rs.
2,00,000, 14% Preference shares of Rs.100 each, fully called Less: Calls in arrears @ Rs.20 per share	2,00,00,000 4,00,000	1,96,00,000
10,00,000 Equity shares of Rs.10 each, Rs.8 per share called Less: Calls–in–arrears	80,00,000 20,000 79,80,000
Add : Calls–in–advance Securities premium General reserve 10,000, 15% Debentures @ Rs.1,000 each, fully paid Current liabilities and provisions	10,000	79,90,000 5,10,000 1,50,00,000 1,00,00,000 10,00,000 5,41,00,000
Assets Fixed assets Investments Other current assets Cash and bank balances		1,30,00,000 28,00,000 2,15,00,000 1,68,00,000 5,41,00,000

On 1st April, 2008, the Board of directors decided that ––

(i)	The fully paid preference shares are to be redeemed at a premium of 4% on 1st May, 2008 and for that purpose 6 lakh equity shares of Rs.10 each are to be issued at a premium of 5%.
(ii)	3,000 Equity shares owned by Mohan, an existing shareholder, who has failed to pay the allotment money and the first call money @ Rs.3 and Rs.2.50 per share respectively, equity shares are to be forfeited on 31st May, 2008.
(iii)	The final call of Rs.2 per share is to be made on 7th July, 2008 on equity shares.

All the above are duly complied with according to schedule. The amount due on the issue of fresh issue and on final call are also duly received except from Sohan who had failed to pay the first call for his 1,400 equity shares, has again failed to pay the final call also. These shares of Sohan are to be forfeited on 31st August 2008.
Show the necessary journal entries.

(0)

(9 marks)

(a)

Comment on any two of the following statements :

(i)

As a matter of prudence, whole of free reserves should not be utilised in the case of buy–back of shares.

(0)

(ii)

As a matter of sound commercial policy, current profits are to be applied while ‘paying dividend out of current profits without making good past losses.’

(0)

(iii)

In case of under–subscripttion of shares, question of returning the money does not arise at all.

(0)

(3 marks each)

(b)

Following are the balance sheets of Asha Ltd. and Bipasha Ltd. as on 31st March, 2008 :

Liabilities	Asha Ltd. Rs.	Bipasha Ltd. Rs.
Capital (Rs.10 per share) Profit and loss account Loan from Asha Ltd. Bills payable	10,00,000 4,00,000 – 80,000 14,80,000	8,00,000 2,00,000 80,000 60,000 11,40,000
Assets Machinery Furniture Debtors Loan to Bipasha Ltd. Shares in Bipasha Ltd. Bills receivable	3,00,000 50,000 2,50,000 80,000 7,00,000 1,00,000 14,80,000	2,80,000 20,000 8,00,000 – – 40,000 11,40,000

Asha Ltd. purchased 75% shares of Bipasha Ltd. for Rs.7,00,000 on 31st March, 2008. Bills payable of Bipasha Ltd. include bills of Rs.20,000 accepted in favour of Asha Ltd.
Prepare a consolidated balance sheet.

(0)

(9 marks)

(a)

Distinguish between any two of the following :

(i)

‘Underwriters’ and ‘brokers’.

(0)

(ii)

‘Marked applications’ and ‘unmarked applications’.

(0)

(iii)

‘Calls–in–arrears’ and ‘calls–in–advance’.

(0)

(3 marks each)

(b)

Following is the balance sheet of Ramesh Ltd. as on 31st March, 2008 :

Liabilities	Rs.
Equity shares of Rs.10 each 12% Preference shares of Rs.100 each General reserve Profit and loss account 15% Debentures Creditors	10,00,000 10,00,000 6,00,000 4,00,000 10,00,000 8,00,000 48,00,000
Assets Goodwill Building Plant	5,00,000 15,00,000 10,00,000
Investment in 10% stock (market value of Rs.5,20,000, nominal value Rs.5,00,000) Stock Debtors Cash Preliminary expenses	4,80,000 6,00,000 4,00,000 1,00,000 2,20,000 48,00,000

Additional information –
Assets are revalued as follows:
Building : Rs.32,00,000; Plant : Rs.18,00,000; Stock : Rs.4,50,000; and Debtors : Rs.3,60,000.
Average profit before tax of the company is Rs.12,00,000 and 12.5% of the profit is transferred to general reserve, rate of taxation being 50%. Normal dividend expected on equity shares is 8% while fair return on capital employed is 10%.
Goodwill may be valued at 3 years’ purchase of super profits.
Ascertain the value of each equity share under fair value method.

(0)

(9 marks)

PART — B
(Answer Question No.5 which is compulsory and any two of the rest from this part.)

PART — B

(Answer Question No.5 which is compulsory and
any two of the rest from this part.)

(a)

State, with reasons in brief, whether the following statements are true or false :

(i)

Cost accounting is a branch of financial accounting.

(0)

(ii)

Bin card shows the value of a material at any moment of time.

(0)

(iii)

In absorption costing, the valuation of inventories is higher than in marginal costing technique.

(0)

(iv)

A budget manual is a summary of all the financial budgets.

(0)

(v)

Cost reduction is cost control.

(0)

(2 marks each)

(b)

Choose the most appropriate answer from the given options in respect of the following :

(i)

Administration overheads are recovered as a percentage of ––
(a) Direct materials
(b) Direct wages
(c) Prime cost
(d) Works cost.

(0)

(ii)

For contracts which are very near to completion, the profit is ascertained by the formula ––
(a) Estimated profit ∞ Work certified / Contract price
(b) Estimated profit ∞ Work certified / Contract price ∞ Cash received / Work certified
(c) Estimated profit ∞ Work certified / Contract price ∞ Cost of work / Total cost to date
Any of the above in the absence of specific instruction.

(0)

(iii)

The type of process loss that should not affect the cost of inventories is ––
(a) Abnormal loss
(b) Normal loss
(c) Seasonal loss
(d) Standard loss.

(0)

(iv)

Cost–Volume–Profit analysis is most important for the determination of the –
(a) Volume of operations necessary to break–even
(b) Variable revenues necessary to equal fixed costs
(c) Relationship between revenues and costs at various levels of operation
(d) Sales volume necessary to equal fixed costs.

(0)

(v)

For shoe manufacturers, the most suitable cost system is ––
(a) Job costing
(b) Batch costing
(c) Contract costing
(d) None of the above.

(0)

(1 mark each)

(c)

Re–write the following sentences after filling–up the blank spaces with appropriate word(s)/figure(s) :

(i)

Cost is a fact whereas price is a __________.

(0)

(ii)

Imputed costs are relevant for _________.

(0)

(iii)

A __________ is the cost that has already been incurred and cannot be avoided by decisions taken in the future.

(0)

(iv)

Economic lot size is the order size that _________ the total cost of ordering and storing.

(0)

(v)

A profit centre is a division or organisational unit concerned with controlling both _________ and costs.

(0)

(1 mark each)

(a)

Write short notes on any two of the following :

(i)

Bases of apportionment.

(0)

(ii)

Cost plus contracts

(0)

(iii)

Labour turnover.

(0)

(3 marks each)

(b)

A factory is currently working at 50% capacity and produces 1,000 units. From the following information, you are required to estimate profits of the factory when it works at 60% and 80% working capacity respectively and offer your critical comments:

At 60% working capacity, raw material cost increases by 2% and selling price falls by 2%. At 80% working capacity, raw materials cost increases by 5% and selling price falls by 5%. At 50% capacity working, the product costs Rs.180 per unit and is sold at Rs.200 per unit. The unit cost of Rs.180 is made up as follows:

	Rs.
Raw material Labour Factory overheads Administration overheads	100 30 30 (40% fixed) 20 (50% fixed)

(0)

(9 marks)

(a)

What are the objectives of financial statement analysis ?

(0)

(6 marks)

"Although including interest in the normal cost is practically difficult but excluding interest altogether may lead to wrong managerial decisions." Comment.

(0)

(6 marks)

(b)

A company has annual fixed cost of Rs.1,40,00,000. In the year 2007–08, sales amounted to Rs.6,00,00,000 as compared with Rs.4,50,00,000 in the preceding year 2006–07. Profit in 2007–08 is Rs.42,00,000 more than that in 2006-07. On the basis of the above information, answer the following:

(i)
(ii)
(iii)

At what level of sales, the company would have break–even?
Determine profit/loss on a forecasted sales volume of Rs.8,00,00,000.
If there is a reduction in selling price by 10% in the financial year 2008–09 and company desires to earn the same amount of profit as in 2007–08, what would be the required sales volume ?

(0)

(9 marks)

(a)

Distinguish between any two of the following :

(i)

‘Budget period’ and ‘control period’.

(0)

(ii)

‘Cash’ and ‘cash equivalents’.

(0)

(iii)

‘Cost sheet’ and ‘production account’.

(0)

(3 marks each)

(b)

From the following information, prepare a cash flow statement showing net cash flows from operating activities, investing activities and financing activities as per Accounting Standard–3 (Revised) :

Rs. in Lakhs

Net profit
Dividend paid (including dividend tax)
Book value of assets sold
Amortisation of capital grant
Carrying amounts of investments sold
Interest expenses
Increase in working capital (excluding cash
and bank balances)
Expenditure on construction work–in–progress
Receipt of grant for capital projects
Proceeds from short term borrowings
Closing cash and bank balances
Provision for taxation
Income–tax paid
Loss on sale of assets
Depreciation charged
Profit on sale of investments
Interest on investments
Interest paid during the year
Purchase of fixed assets
Investment in joint venture
Proceeds from calls–in–arrears
Proceeds from long–term borrowings
Opening cash and bank balances