gpsc.gujarat.gov.in Administrative Service Main Exam Commerce & Accountancy Sample Paper : Public Commission
Organisation : Gujarat Public Service Commission
Post : Main Exam, Gujarat Administrative Service Class-1 & Class-2
Document Type : Sample Paper
Subject : Commerce And Accountancy
Website : https://gpsc.gujarat.gov.in/Archieved/sample-papers.html
Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/25574-Accountancy.pdf
GPSC Main Exam Commerce & Accountancy Sample Paper
Main Examination :
English Medium :
Related : GPSC Gujarat Administrative Service Main Exam Botany Sample Paper : www.pdfquestion.in/25570.html
Time : 3 Hours
Total Marks : 200
Instructions
(1) The question paper has been divided into three parts, A, B and C. The number of questions to be attempted and their marks are indicated in each part.
(2) Answers of all the questions of each part should be written continuously in the answer sheet and should not be mixed with other parts’ Answer. In the event of answer found, which are belongs to other part, such answers will not be assessed by examiner.
(3) The candidate should write the answer within the limit of words prescribed in the parts A, B and C.
(4) If there is any difference in English language question and its Gujarati Translation, then English language question will be considered as valid.
(5) Answer should be written in one of the two languages. Write in the language (English or Gujarati) preference given by you. Answer should not be written in both the languages in the same paper.
Sample Question
Instructions :
(1) Question No. 1 to 20.
(2) Attempt all 20 questions.
(3) Each question carries 2 marks.
(4) Answer should be given approximately in 20 to 30 words.
Part – A
1. Explain the Materiality concept.
2. Explain Matching Principle of accounting.
3. State the adjustment entry for closing stock and prepaid expenses.
4. A and B are partners sharing profit in the ratio of 7 : 3. They admit C for 2/10 share of profit which he takes equally from A and B. Calculate sacrificing ratio and new profit sharing ratio.
5. In absence of partnership deed, state how the admission and retirement of the partners will be governed and what are the conditions for the same.
6. If the opening balance of the debtors is ` 90,000; sales during the year is ` 13,20,000 and the closing balance of the debtors is ` 1,50,000; calculate the cash received from the debtors during the year.
7. State the meaning of amalgamation adjustment account and when it is created.
8. Following information is made available to you to compute purchase consideration :
(i) P Ltd. takes over Q Ltd. and agrees to issue 5 shares of ` 10 each at ` 20 for every 8 shares of Q Ltd. Total number of the fractional shares are 100.
(ii) Number of shares of Q Ltd. were 1,00,000 before takeover.
9. State the meaning of hire purchase agreement.
10. State what is incomplete in ‘Accounts from incomplete records’.
11. State the meaning of purchase consideration as per AS-14.
12. State the elements of cost.
13. Define and illustrate cash and cash equivalents as used in the preparation of cash flow statement.
14. Explain the meaning of Current ratio.
15. State the meaning of ‘Net Present Value’ with reference to capital budgeting decision.
16. What are IFRS ?
17. Define ‘Assessment year’ under the Income Tax Act, 1961.
18. State the provisions for exemption of House Rent Allowance under Income Tax Act, 1961.
19. State the conditions for ‘Resident and Ordinarily resident’ for individual under Income Tax Act, 1961.
20. State precisely the meaning of ‘investigation’.
Part – B
Instructions :
(1) Question No. 21 to 32.
(2) Attempt all 12 questions.
(3) Each question carries 5 marks.
(4) Answer should be given approximately in 50 to 60 words.
21. State the meaning and purpose of Bank reconciliation statement.
22. M Ltd. forfeited 500 shares of ` 10 each fully called up for non-payment of first call of ` 2.50 per share and final call of ` 2.50 per share. 300 of these shares were issued at ` 8 per share fully paid up. Pass the journal entries for forfeiture and reissue of shares.
23. The following particulars are available in respect of the business :
Year 2011-12 2012-13 2013-14 2014-15 2015-16
Profit (`) 30,000 34,000 36,000 24,000 38,000
(i) The above profit include non-recurring profit on an average basis of ` 2,000 per annum.
(ii) Capital employed ` 2,40,000
(iii) Normal rate of return 12 percent Calculate Value of goodwill as per five years purchase of super normal profit.
24. Differentiate between error of omission and error of commission.
26. R Ltd., a sailboat manufacturer is currently operating at 70 percent capacity and producing about 10000 units a year. In order to use more capacity the manager has been considering the R & D department’s suggestion that R Ltd.
should manufacture its own sails. Currently the company purchases sails from the supplier at the unit price of `28. Estimates show that the company can manufacture the same at ` 10 per unit of direct material cost and ` 8 direct labour cost. The factory overheads are ` 2 per rupee of direct labour cost of which 20 percent is variable. Advise : Should the company make or buy the sails ?
27. Explain the meaning of ratio analysis and two important liquidity ratios.
28. Discuss the significance of Zero based budgeting.
29. Discuss various aspects of ‘Statutory Audit’.
30. Discuss various aspects of ‘Government Audit’.
31. Municipal value of a house is ` 1,20,000; Fair rent is ` 1,80,000 and standard rent is ` 1,50,000. The house property was let out for ` 14,000 p.m. However, the tenant vacated the property on 30-10-2015. For the months of November 2015 to January 2016, the property remained vacant. It was let out for ` 18,000 p.m. with effect from 1-2-2016. Municipal taxes paid were 15% of municipal valuation. Compute the annual value of the house property.
32. Mr. T receives following gifts during the previous year 2014-15 :
i. On the occasion of marriage Mr. T gets ` 2,90,000 as gift on 2-4-2014. (of this` 1,50,000 is from friends and ` 1,40,000 from relatives).
ii. On 22-6-2014 he receives gift of ` 25,000 from Mr. C, cousin of his father.
iii. A computer received from his employer (it was purchased for ` 65,000 by the employer on 1-5-2014 and given as gift to Mr. T on 20-10-2014)
iv. On 30-12-2014 Mr. T received by way of gift commercial property from the elder brother of the father in law (stamp duty value ` 25,00,000).
v. On 25-1-2015 he purchases a work of art for ` 16,00,000 from an exhibition in New York. The Fair market value of the same on the date of purchase was ` 17,00,000. Compute the chargeable gift.
Part – C
Instructions :
(1) Question No. 33 to 39.
(2) Attempt any 5 out of 7 questions.
(3) Each question carries 20 marks.
(4) Answer should be given approximately in 200 words.
33. Following are the Balance Sheets of A Ltd. and B Ltd. as on 31-3-2016.
Capital & Liabilities A Ltd. (`) B Ltd. (`)
Equity share Capital (` 10) 5,00,000 3,00,000
14% Preference share capital (` 100 each) 2,20,000 1,70,000
General Reserve 50,000 25,000
Export Profit Reserve 30,000 20,000
A Ltd. takeover B Ltd. on 1st April, 2016. A Ltd. discharges the purchase consideration as follows :
(i) Issued 35,000 equity shares of ` 10 each at par to equity share holders of B Ltd.
(ii) Issued 15% preference shares of ` 100 each to discharge preference shareholders of B Ltd. at 10% premium.
The Debenture holders of B Ltd. were taken over and then discharged by issue of equivalent number of 12% Debentures of A Ltd. Assume Statutory Reserves of B Ltd. (Export Profit Reserve, Foreign Project Reserve, Investment Allowance Reserve) are to be maintained for two more years. Prepare necessary ledger accounts to close the books of B Ltd. assuming that amalgamation is in the nature of merger.
34. The product of a manufacturing concern passes through two processes, A and B and then to finished stock. It is ascertained that in each process 5% of total weight is lost and 10% is scrap. The scrap from processes A and B realizes ` 80 per tonne and ` 200 per tonne respectively.
The following are the figures relating to both the processes :
Process A Process B
Materials (Tonne) 1000 70
Cost of material (` per tonne) 125 200
Wages (`) 28,000 10,000
Manufacturing expenses(`) 8,000 5,250
Output (Tonnes) 830 780
Prepare the process cost accounts showing cost per tonne of each process. There was no opening stock or work-in-process in any process.
35. In a meeting held at Delhi towards the end of 2014-15, the directors of the company have taken a decision to diversify. At present the company sells all finished goods from its own warehouse. The company issued debentures on 1-4-2015 and purchased fixed assets on the same day. The purchase prices have remained stable during the concerned period. Following information is provided to you
You are required to compute the following ratios for the year 2014-15 and 2015-16.
(i) Gross Profit Ratio
(ii) Operating Profit Ratio
(iii) Net Profit Ratio
(iv) Net Profit to Net worth
(v) Capital Turnover Ratio
(vi) Stock Turnover Ratio
(vii) Debtors Collection period.
Ratios relating to capital employed should be based on the capital at the end of the year. Give reasons for change in ratios of two years. Assume opening stock of ` 40,000 for the year 2014-15. Ignore taxation.
37. Elaborate on various aspects of appointment of the Company auditor in AGM, rotation of company auditors and re-appointment of retiring auditors.
38. Discuss various aspects for preparation of the Consolidated Financial Statements.
39. Discuss in detail the provision for deduction under section 80G regarding Donation under the Income Tax Act, 1961.