MEGHALAYA CIVIL SERVICE JUNIOR GRADE [PART B MAINS] (FEB 2022 AND JULY 2023)NO.MPSC/ADVT-54/1/2020-2021/53 — question paper

ECONOMICS-I, Paper-VI, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 7. Questions 2 to 7 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Describe Say’s law of market and explain the process of achieving full employment. Explain how the level of income and employment is determined according to Keynes.

ECONOMICS-I, Paper-VI, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 7. Questions 2 to 7 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Explain the liquidity preference theory of interest. What are its limitations?

ECONOMICS-I, Paper-VI, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 7. Questions 2 to 7 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Discuss the goals and instruments of monetary management in a closed and an open economy.

ECONOMICS-I, Paper-VI, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 7. Questions 2 to 7 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Explain the different types of budget deficits. Discuss the various effects of public expenditure.

ECONOMICS-I, Paper-VI, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 7. Questions 2 to 7 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

(a) Discuss the concepts of comparative advantage in international trade. Explain the role of terms of trade in generating surplus or deficits.
(b) Explain the concept ‘Trade as an engine of growth’.
(c) Discuss the major differences between an import quota and a tariff.

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Ranade’s critique of Laissez-Faire

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Contributions of Gadgil and Rao in the estimation of national income in India

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Regional disparities in agricultural growth

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Measurements of poverty

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Agriculture and the World Trade Organization (WTO)

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

Intellectual Property Rights (IPR)

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Question 1: write short notes on any five of seven topics, 10 marks each. No word limit is printed.

73rd and 74th Constitutional Amendments

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Questions 2 to 8 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Describe the Indian economy during the colonial period with special references to agriculture and trade relations with other countries.

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Questions 2 to 8 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Explain the idea of the Green Revolution. Discuss the effect of technological changes in terms of agricultural prices and the terms of trade.

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Questions 2 to 8 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Discuss the role of public and private sectors in the process of growth in Indian industries.

ECONOMICS-II, Paper-VII, Optional. 250 marks; 3 hours. Answer Question No. 1 which is compulsory and any four of Questions 2 to 8. Questions 2 to 8 carry 50 marks each; all subparts of each chosen parent must be answered. No word limit is printed.

Explain the various causes of inflation. What policy measures can be adopted to control inflation? Discuss the effect of inflation under open economy.

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Q1, Q2 and Q3 each carry50marks; selected Q4/Q8 alternatives carry25each. No word limit is printed.

(a) State the sources of buyback of shares. [10]
(b) The following is the Balance Sheet of XY Ltd. as at 31st March, 2023:
Particulars | Amount ₹
I. Equity and Liabilities:
1. Shareholders’ Funds:
(a) Share Capital: 100000 Equity Shares of ₹10 each | 10,00,000
(b) Reserve and Surplus: General Reserve 4,50,000; Profit & Loss A/c 2,00,000; Staff Welfare Fund 80,000 | 7,30,000
2. Non-Current Liabilities: Long-term Borrowings—10% Debentures | 6,00,000
3. Current Liabilities: (a) Trade Payables—Creditors | 3,70,000
(b) Short-term Provision—Proposed Dividend | 1,50,000
Total | 28,50,000
II. Assets:
1. Non-Current Assets: Fixed Assets
(a) Tangible Assets: Equipments (at cost)18,00,000; Less: Depreciation3,00,000 | 15,00,000
(b) Intangible Assets: Goodwill | 2,00,000
2. Current Assets: (a) Inventories | 7,00,000
(b) Trade Receivables—Debtors | 3,00,000
(c) Cash and Cash Equivalents: Cash at Bank | 1,50,000
Current assets total | 11,50,000
Total | 28,50,000
You are required to calculate the value of each equity share on assets basis based on the following information: [40]
(i) A fair after-tax return on capital employed for this type of business is18%
(ii) Equipment to be revalued at ₹16,00,000
(iii) Inventories are considered to have a net realizable value of ₹6,60,000
(iv) Goodwill in this type of business is normally valued at3years purchase of super profits
(v) Included in the debtors is a balance of ₹20,000 which is considered irrecoverable
(vi) Profits for the last three years (before interest and taxes) are: 2020–21 ₹11,00,000; 2021–22 ₹10,20,000; 2022–23 ₹10,80,000
(vii) Company’s profits are taxed at40%

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Each selected integrated response carries 50 marks; all subparts must be answered. No word limit is printed.

Or
(a) What are the functions of Cost Accounting? [10]
(b) A product passes through three distinct processes—A, B and C. The details of expenses incurred on the three processes during the year 2023 were as under:
Process | A | B | C
Units issued/introduced (in unit) | 10000 | — | —
Cost per unit (in ₹) | 100 | — | —
Materials (in ₹) | 10,000 | 15,000 | 5,000
Labour (in ₹) | 30,000 | 80,000 | 65,000
Direct expenses (in ₹) | 6,000 | 18,150 | 27,200
Selling price per unit of output (in ₹) | 120 | 165 | 250
Management expenses during the year were ₹80,000 and selling expenses were ₹50,000. These were not allocable to the processes.
The actual output of the three processes was A—9300 units; B—5400 units; and C—2100 units.
Two-thirds of the output of Process—A and one-half of the output of Process—B were passed on to the next process and balance was sold. The entire output of Process—C was sold.
The normal loss of the three processes, calculated as percentage of input, was as follows: Process—A 5%, Process—B 15% and Process—C 20%.
The normal loss units of Process—A were sold at ₹2 per unit, those of Process—B at ₹5 per unit and of Process—C at ₹10 per unit.
Prepare Process A/cs, Abnormal Loss and Abnormal Gain A/c, and also a statement of profit and loss. [40]

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Q1, Q2 and Q3 each carry50marks; selected Q4/Q8 alternatives carry25each. No word limit is printed.

From the following information, calculate the taxable income of Mr. A (age56 years), an employee of a private company for the Assessment Year,2024–25: [50]
Basic Salary ₹35,000p.m.; Dearness Allowances ₹12,000p.m.; Entertainment Allowances ₹1,500p.m.; City Compensatory Allowances ₹1,000p.m.
Mr. A and his employer both contributes ₹50,000p.a. to a recognized provident fund. Interest on provident fund @15% is ₹30,000. He is provided with a rent-free furnished accommodation at Shillong for which the company pay rent of ₹6,000p.m. During the year, he has earned ₹8,200 as bank interest from Savings A/c and ₹10,000 as interest from Fixed Deposit, and further ₹6,000 from interest from Post Office Savings A/c. Dividend received by him during the year from an Indian company amounted to ₹25,600.
During the year, he paid Life Insurance Premium on his own life ₹25,000 (policy value ₹1,50,000). He also paid Medical Insurance Premium ₹20,000p.a. for covering self and spouse’s health. He donated ₹16,000 to National Defence Fund and paid ₹2,500 as professional tax for the year.
(Assume that dearness allowance does not form part of salary for computation of any retirement benefits and Mr. A has exercised the option to shift out of the default tax regime under Section115BAC.)

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Q1, Q2 and Q3 each carry50marks; selected Q4/Q8 alternatives carry25each. No word limit is printed.

(a) What are the special features to be considered while conducting an audit of an educational institution? [25]
(b) “No dividend shall be payable, except out of profit.” Discuss the above statement. [25]

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Q1, Q2 and Q3 each carry50marks; selected Q4/Q8 alternatives carry25each. No word limit is printed.

Residential status of an individual as per the IT Act, 1961

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Break-even Analysis

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Accounting for Depreciation

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Vouching

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Each selected integrated response carries 50 marks; all subparts must be answered. No word limit is printed.

Or
(a) What are the assumptions based on which the Modigliani and Miller theory was developed? [10]
(b) Who are the important players in the Indian Money Market? [10]
(c) If the RBI reduces the CRR, what will happen to the credit creation? [10]
(d) Calculate the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of Combined Leverage (DCL) for the following firms and interpret the results: [20]
Firms | A | B | C
1. Output (units) | 60000 | 15000 | 100000
2. Fixed cost (₹) | 7,000 | 14,000 | 1,500
3. Variable cost per unit (₹) | 0.20 | 1.50 | 0.02
4. Interest on borrowed funds (₹) | 4,000 | 8,000 | —
5. Selling price per unit (₹) | 0.60 | 5.00 | 0.10

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Each selected integrated response carries 50 marks; all subparts must be answered. No word limit is printed.

5. (a) Write a note on profit maximization versus wealth maximization. [10]
(b) What are the factors determining a firm’s working capital requirements? [10]
(c) Explain briefly the main determinants of dividend policy of a firm. [10]
(d) Machine—A costs ₹10,00,000 payable immediately and Machine—B costs ₹12,00,000, half payable immediately and half payable in one year’s time. The cash receipts expected from the two machines are as follows:
Year (at end) | Machine—A ₹ | Machine—B ₹
1 | 2,00,000 | —
2 | 6,00,000 | 6,00,000
3 | 4,00,000 | 6,00,000
4 | 3,00,000 | 8,00,000
5 | 2,00,000 | —
The company’s cost of capital is 7%. You are asked to calculate the NPV of each machine. Suggest which machine should be selected. [20]
The present value of ₹1 at 7% discounting rate are as follows:
Year | 1 | 2 | 3 | 4 | 5
PV Factor @ 7% p.a. | 0.935 | 0.873 | 0.816 | 0.763 | 0.713

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Each selected integrated response carries 50 marks; all subparts must be answered. No word limit is printed.

6. The capital structure and specific cost of capital (after tax) of a company is given below:
Source | Book value (₹) | After-tax cost (%)
Equity Share Capital (shares of ₹10 each) | 2,00,000 | 18%
Retained Earnings | 1,00,000 | 18%
Long-term Loan | 2,00,000 | 6%
Total | 5,00,000 |
The present market value of equity is ₹90 per share and the corporate tax rate is 25%.
Calculate the Weighted Average Cost of Capital (WACC) using—
(a) book value weights;
(b) market value weights. [50]

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Each selected integrated response carries 50 marks; all subparts must be answered. No word limit is printed.

7. The Cost Sheet of a company provides the following information:
Elements of Cost | Amount per unit ₹
Raw Materials | 40
Direct Labour | 15
Overheads | 30
Profit | 15
Selling Price | 100
The following particulars are available:
Raw materials are in stock on an average for 1 month. Work-in-progress is on an average for half a month. Finished goods are in stock for an average of 1 month. Credit allowed by supplier is 1 month and credit allowed to customers is 2 months. Lag in payments of wages is half of the month and lag in payments of overheads is 1 month. It is also informed that the 1/4th of the total sales is against cash. Cash balance of the company is expected to be ₹25,000.
Prepare a statement showing working capital requirement for a level of activity of 104000 units of production during a year. [50]

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Q1, Q2 and Q3 each carry50marks; selected Q4/Q8 alternatives carry25each. No word limit is printed.

Changes in the structure of Indian financial institutions in the post-reform period (i.e., post 1991)

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Monetary policy techniques of the Reserve Bank of India

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Causes of industrial sickness

COMMERCE AND ACCOUNTANCY-I, Paper-VI, Optional. 250 marks; 3 hours. Candidates should attempt Question Nos. 1 and 5 which are compulsory and three from the remaining questions, selecting at least one from each Part. Q1 and Q5 have separate OR alternatives. Q4: Write short notes on any two of the following with examples (25 marks each). Q8: Write short notes on any two of the following (25 marks each). Each selected alternative carries 25 marks. No word limit is printed.

Instruments of the Indian money market

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

(a) Discuss the contribution of Henri Fayol to management.
(b) How can employee training and development program be used to improve organizational performance?

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

(a) Define organization. Explain the different forms of organizational structure.
(b) What functions do informal groups perform from the members point of view?

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

Discuss the various functions which constitute the process of management.

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

(a) “Good leadership is an integral part of effective direction.” Discuss.
(b) Explain the elements of good planning.

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

What are the forces that cause organizational change? Discuss how an organization would manage the change process.

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

Explain the different types of industrial disputes in India. Explain how disputes between employees and management should be resolved.

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

(a) What is the role of trade unions in the modern workplace?
(b) How can Human Resource (HR) Department work most effectively with unions to ensure the best possible outcome for all parties involved?

COMMERCE AND ACCOUNTANCY-II, Paper-VII, Optional. 250 marks; 3 hours. Candidates should attempt Question No. 1 which is compulsory and four of the remaining questions, selecting at least two from each Part. Q1 has separate OR alternatives. Each integrated response carries 50 marks; all its subparts must be answered. No word limit is printed.

(a) Discuss the factors that contributed to the growth of Trade Union Movement in India.
(b) Describe the significance of International Labour Organization (ILO) in the context of Industrial Relations.