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MUSTAFA AHMED

8879416201
Mstfahmed76@gmail.com
SUBJECT : MANAGEMENT ACCOUNTANCY
Total Marks : 80
N.B. : 1) All questions are compulsory
2) 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 misuse
of ratios by a company. (Marks : 15)
SUBJECT : COST ACCOUNTING
Total Marks : 80
N.B. : 1) All questions are compulsory
2) 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
and
implementation?
Q3) Standard costing is a valuable aid to management discuss. State in brief limitation of
standard
costing?
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 : AUDITING
COURSE : CCA Total Marks : 80
N.B. : 1) All questions are compulsory

2) 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
emphasis
on the changing computer environment?
Q2) How can the auditor be useful in achieving the objectives of a Charitable Trust or
Society and a
Co-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
the
light of statutory provisions under the Companies Act 1956.
Q5) Discuss the three types of audits, which although not mandatory under the Income Tax
Act
1961, 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
information
technology 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 a
Consultant 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 of
auditor under Maharashtra Co-operative Societies Act?
Q10) An auditor is protected from unceremonial removal from office enabling him to
maintain his
independence? Do you agree with the statement? If so discuss the position of the auditor in
this regard in the light of statutory provisions under the Companies Act 1956?
SUBJECT : ADVANCED ACCOUNTING
Total Marks : 80
N.B. : 1) All questions are compulsory
2) All questions carry equal marks.
Q-1) Briefly explain the following
i) Dual aspect concept

ii) Realisation concept


Q-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 following
Sale and Consignment
Q-6) What do you mean by Self balancing ledgers?
Discuss the main advantages of self balancing ledgers?
Q-7) Explain the following.
i) Adjustment Entries
ii) Capital expenditure and Revenue expenditure
Q-8) What are the different causes of discrepancy between bank balances as per cash book
and pass
book?
SUBJECT: ACCOUNTING
Total Marks: 80
N.B. : 1) All questions are compulsory
Q1) ABC Ltd. Produces room coolers. The company is considering whether it should
continue to
manufacture air circulating fans itself or purchase them from outside. Its annual requirement
is
25000 units. An outsider vendor is prepared to supply fans for Rs 285 each. In addition,
ABC Ltd
will 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. 50,00,000
Labour Rs. 20,00,000
Supervision & other indirect labour Rs. 2,00,000
Power and Light Rs. 50,000
Depreciation Rs. 20,000
Factory Rent Rs. 5,000
Supplies Rs. 75,000

Power and light includes Rs 20,000 for general heating and lighting, which is an allocation
based on
the light points. Indirect labour is attributed mainly to the manufacturing of fans. About 75%
of it
can be dispensed with along with direct labour if manufacturing is discontinued. However,
the
supervisor who receives annual salary of Rs 75,000 will have to be retained. The machines
used for
manufacturing 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 the
company is not able to see an alternative use for the space which would be released.
Should ABC
Ltd. Manufacture the fans or buy them?
Q2) Usha Company produces three consumer products : P, Q and R. The management of
the
company wants to determine the most profitable mix. The cost accountant has supplied the
following
data. {30 Marks }
Usha Company : Sales and Cost Data
Description Product Total
PQR
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15 10 25
Fixed Overheads (Rs .000) 9,175
Current Sales (Units ,000) 100 50 60 210
Projected Sales (Units ,000) 109 55 125 289
Selling Price per unit (Rs) 150 200 270
Raw material used by the firm is in short supply and the firm can expect a maximum supply
of 350
lakh kg for next year. Is the companys projected sales mix most profitable or can it be
changed for
the better?

Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers and
textiles. The summary of the companys profit is given below : {25 Marks }
(Rs/Crore)
Cement Fertilizer Textiles Total
Sales 20.0 12.0 18.0 50.0
Less : Variable Cost 8.0 9.6 5.4 23.0
Contribution 12.0 2.4 12.6 27.0
Less : Fixed Cost (allocated to
divisions in proportion to
volumes of Sales)
8.0 4.8 7.2 20.0
Profit (Loss) 4.0 (2.4) 5.4 7.0
After allocating the companys fixed overheads to products the Fertilizers, division incurs a
loss of
Rs 2.4 crore. Should the company drop this division?
SUBJECT : AUDITING
Total Marks : 80
N.B. : 1) All questions carry equal marks
2) Answer any four questions
CASE STUDIES
Q1) H.W.P. Private Ltd. Is having only two members H and W. During the audit of accounts
for the
year 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
the
books of accounts. You raise the matter with H and W in their capacity as directors. They
contest that as this is a position known to them and within their own fold, you should not
report
the same under the Company's Act 1956. Discuss whether the above arguments are
acceptable
under the Company's Act 1956 for non-reporting?
Q2) As an auditor, how would you react to the following situation? The company produced
photocopies of fixed deposit receipts as the original receipts were kept in the iron safe of the
director 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
each
year. The Chief Accountant of the company is requesting the tax auditor to conduct tax audit
U/S 44 AB of the I. T. Act for the period for which accounts have been maintained under the
Company's Act. As the tax auditor of ABC Private Limited, how will you react to the Chief
Accountant request?
Q4) Comment : The Auditor is responsible for failure to disclose the affairs of the company
kept out
of books and concealed from him.
Q5) Comment : Balance confirmations from debtors/creditors can only be obtained for
balances
standing in their accounts at the year end?
Q6) Give your comments and observations on the following many cheques have been
received by
the auditor on the last day of the year, but not yet deposted with the bank?
SUBJECT : COST ACCOUNTING
Total Marks : 80
Select 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 budgeting
b) Sales budgeting
c) Fixed budgeting
d) Flexible budgeting
Q2) Which is the term used for internal transfers between profit centres.
a) Process costing
b) Standard costing
c) Transfer pricing
d) Marginal costing.
Q3) Labour cost variance means difference between
a) (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) Depreciation
b) Asset purchased.
c) Cash purchase made
d) Cash sales made

Q5) Calculate Fixed Cost when :


P. V. Ratio = 50%
Variable cost = Rs 10,000
Break even point = Rs 15,000
Q6) Calculate Break even point in units.
When
Fixed cost = Rs 20,000
Total 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 costing
b) Marginal costing
c) Target costing
d) Activity based costing.
Q9) Which of following plan summarises budget.
a) Master budget
b) Zero based budgeting
c) Fixed budget
d) Flexible budget
Q10) In which form of costing selling price is finalized first.
a) Target costing
b) Absorption costing
c) Total Quality Management
d) Activity based Costing
Q11) 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 Unit
Material 140
Labour 50
Variable Overheads 40
Fixed Overheads 20
Variable Expenses (Direct) 10
Selling Expenses (10% Fixed) 26
Distribution Expenses (20% Fixed) 14
Admin Expenses 10
Prepare 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 months
Sales 45,000 50,000
Total Cost 40,000 43,000
Assume there is no change in price and variable cost and fixed expenses are incurred
equally in
two half year periods. Calculate for year 1996.
1) Profit volume ratio.
2) Fixed expenses.
3) Break even sales
4) Margin of safety.
Q14) Labour budget of company for week is as follows : (15 Marks)
20 men @ 50 paise p hr for 40 hr = 400
40 men @ 30 paise p hr for 40 hrs = 480
_______
880
======
Actual Labour was as follows :
30 men @ 50 paise for 40 hr = 600
30 men @ 35 paise for 40 hrs = 420
_______
1020
======
Analyse Labour Variances
Q15) Calculate break even point (10 Marks)
1) S. price in Rs 20
2) Manufacturing vari cost Rs 10.
3) Selling variable cost Rs 5.
4) Fixed overheads = Rs 5,00,000
5) Selling overheads = Rs 2,00,000
SUBJECT : TAXATION
Total Marks : 80
Instructions:
a) Each question carries 20 marks
b) Make assumptions wherever necessary
Q1) a) Mr. Jayant an Indian Citizen, furnishes the following particulars of his income earned
during the

previous year relevant to assessment year 2008-09.


Sr.no Particulars Rs.
1. Interest on Nepal Development Bond (1/3 received in India) 21,000
2. Income from Agriculture in Bangladesh 40,000
3. Rent from Property in Japan received outside India 10,000
4. Income earned from Business in London which is controlled from Delhi
(Rs. 15,000 received in India
35,000
5. Interest paid by an Indian company but received outside India 9,000
6. Past untaxed profit brought to India 33,000
7. Profit from a business in Thane and managed from outside India 50,000
8. Profit on sale of building in Mumbai but received in Sri Lanka 40,000
9. Pension from an Indian employer in India received in Rangoon 30,000
Find out his gross total income if he is i) Resident and ordinarily resident. ii) Resident but
not ordinarily
resident. 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 25
September 2007. Prior to 1st April 2007 he was in India for more than 365days during the
preceding four
years 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. Amrita
for the assessment year 2008-09, taking into account the following information: (20 Marks)
a) Salary received Rs 16,000
b) Bonus received Rs 2,000
c) House Rent allowance Rs 6,800
d) Salary in lieu of leave Rs 12,000
e) Entertainment allowance Rs 3,000
f) Company provides free gas and electricity(cost) Rs 6,000
g) Domestic servant (not being sweeper, watchmen or
gardener) paid for by the company Rs 12,800
h) Free education for her two sons in a school
maintained by the company (cost) Rs 12,000
i) Free lunch in office Rs 10,000
j) Salary of cook Rs 12,000

Cook is engaged by Mrs. Amrita. She contributes i) Rs 13,500 towards contribution to a


recognized Provident
fund 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 26,000
Besides, 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 of
house 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 II
Muncipal tax paid on 31st March 2008 2,100 6,200
Lease Rent 200 1,200
Fire insurance 2,300 600
Repairs 200 Collection charges 50 Q3)
ended 31st March, 2008 : (20 Marks)
Particulars Rs Particulars Rs
To Salaries 56,000 By Gross profit 3,40,000
To Travelling expenses 14,000 By Subsidies and cash
To Embezzlement of cash 10,000 Assistance from govt. 66,000
To Professional Tax 1,500 By Export Award received
To Insurance on health From Government 42,000
Of employees 2,250 By amount withdrawn from
To wealth tax 9,750 public provident fund A/c 52,000
To Diwali expenses 4,350 By Dividend from Indian Cos. 1,00,000
To telephone & telex charges 5.650
To Advertisement 17,500
To depreciation 10,000
To Interest on loan 15,000
To Guest house expenses 8,000
To expenses on scientific
Research 2,12,000
To Net profit 2,34,000
6,00,000 6,00,000
Following 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 party
and 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 of
consideration Rs.
Goodwill of a business --- 40,000 4,00,000
Tenancy rights of a
commercial building
---- 1,00,000 6,00,000
Route permit ---- 50,000 5,00,000
Shares acquired in 1978 70,000 50,000 4,00,000
ii) 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 December
2007
Q4b) The following incomes are received by Mr. Mohan during financial year 2007-08
a) Directors fees Rs 2,000
b) Income from agricultural land in Pakistan Rs 5,000
c) Ground rent for land in Pathankot Rs 10,000
d) Interest on Postal Savings bank A/c Rs 100
e) Interest on deposits with Industrial Finance Corporation of India Rs 500
f) Dividend from a foreign company Rs 700
g) Rent from sub-letting a house Rs 26,250
h) Rent payable by Mr. Mohan for the sub-let house Rs 12,000
i) Other expenses on sub-let-house Rs 1,000

j) Winnings from horse race (Gross) Rs 12,300


k) Interest on securities (Gross) Rs 4,000
You are required to calculate Income from other sources of Mr. Mohan for the assessment
year 2008-09