Roll No.

BCH-501
B. COM. (HONS.) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
INTERNATIONAL BUSINESS
Time: Three Hours

Maximum Marks: 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Define International Business. Compare and contrast between domestic

business and international business. (CO1)
(b) Describe briefly the different modes of entry into international business.
(CO1)
(c) Explain the relevance of business environment. How do cultural and
legal systems of countries influence the international business ? (CO1)

2. (a) Give a brief account of the economic and political environment of

business between nations and their implications on business. (CO2)
 (2) BCH-501

(b) Differentiate between domestic business and international business.

(CO2)

(c) Distinguish between foreign exchange risk and foreign exchange

exposure in international financial transactions. Briefly explain the
theories of exchange rate determination.' (CO2)

3. (a) What is Regional Economic Integration ? Explain different levels of

Economic Integration. Do you think that ASEAN has been successful in

promoting regional integration among various countries of Asia ? Give
reason. . . (CO3)

(b) Outline the drivers of International Business and explain in detail.

(CO3)

(c) What is the purpose of organizational structure for international

business operations ? Explain the global product structure in this
context. (CO3)

4. (a) Briefly explain the contribution and relevance of Porter’s Diamond :

Porter’s Theory of National Competitive Advantage as a theory of

international trade. (COT)

(b) Explain the absolute advantage theory of world trade. • (CO4)

*
’ I
(c) Enumerate different steps involved in export as a strategy for
international expansion. (CO4)
 5. (a) Explain the make or buy decision. Will the “Make in India” campaign
have any impact on this decision in international trade ? . (CO5)
(b) What is WTO ? Explain its main principles and functions. (CO5)
(c) Write short notes on any two of the following : (CO5)
(i) SEZsandEOUs

(ii) SAARC

(iii) World Bank and IMF

BCH-501 200
 A) Roll No.................................
I

BCH-502 '• • '

B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
INCOME TAX LAWS AND PRACTICE
Time: Three Hours
Maximum Marks: 100
Note: (i) All questions are compulsory.
(ii) Answer any two sub-questions among (a), (b) & (c) in each main
question.
(iii) Total marks in each main questions are twenty.
(iv) Each question carries 10 marks.

1. (a) Define the following terms as per Income Tax Act, 1961 : (CO 1)
(i) Assessment Year
(ii) Tax Evasion
(iii) Agriculture Income
(iv) Taxability of Family Pension
(b) ‘X’ earns the following income during the financial year:

(in ?)
(1) Interest from an Indian company received in U.K. 1,000
 (2) BCH-502

(2) Pension from former employer in India received in

U.S.A. 54,000

(3) Profits earned from a business in Paris which is

controlled in India, half of the profits being received in
India 20,000

(4) Income from agriculture in Bhutan and remitted to India 5,000

(5) Income from property in England received there 4,000

(6) Past foreign untaxed income brought to India 10,000

Compute his income if he is : (CO3)

(i) Resident and ordinarily resident in India
(ii) Not ordinarily resident in India
(iii) Non-resident in India
(c) Discuss under what circumstances an assessee will be considered “non­
resident” for income-tax purpose and on what income he will liable to
assessed. (CO0

2. (a) Explain the term “Annual value” under Section 23 (1) of the Income-
Tax Act. Give examples. 1 (CO2)
(b) Mrs. Roma, an employee of XYZ Ltd., submits the following
information for the A.Y. 2019-20 :
Salary ? 1,86,000? City compensatory allowance ? 8,000; Bonus

? 10,200; Education allowance f 4,000 (for her grandchildren); Income

tax penalty paid by the employer \ 2,000; Medical expenses reimbursed
 (3) BCH-502

by the employer ? 12,000; Leave travel concession ? 1,000 (expenditure

incurred by the employee nil); Free residential telephone ? 4,000; Free
refreshment during office hours ? 4,000; Reimbursement of electricity
bill by the employer ? 1,060; Reimbursement of gas bills ? 1,000;
Professional tax paid by the employer ? 300 on behalf of Mrs. Roma;
Professional tax paid by Mrs. Roma ? 150.

Determine the total income of Mrs. Roma for the A.Y. 2019-20. (CO5)

(c) Miss Khushi has the following salary details :

(i) Basic Salary ? 6,000 pt. m. •. ■ •

•(H) DA?3,000 p.m. . ‘ •

(iii) Academic development allowance t 1,000 p. m., expenditure

« '

incurred ? 7,00 p. m. ;

(iv) Entertainment allowance f 500 p. m;

She has been provided with a rent free accommodation in Purulia. On

1/7/2018, she was posted to Kolkata. A new house further allotted to her
on same date. But she surrendered her Purulia house only on 31/12/201S.

Rent paid by employer for Purulia house ? 500 p. m. while the Kolkata
house is owned by the employer.

Find her gross taxable salary. (CO3)

3. (a) Distinguish between short-term capital gain and long-term capital

gain. (CO2)

P. T. O.
 (4) BCH-502

(b) Rajan Ltd. has two machines namely S and M in the block as on
1-4-2018 [WDV - ? 3,00,000]. Machine L was acquired oh 12-11-2018
r
for ? 1,50,000 and put to use on the same date. The same machine L is
sold on 24-3-2019 for ? 2,00,000 : (CO2)

(i) Compute the depreciation allowable u/S 32 for the A.Y. 2019-20 on
the block. , ' ’
(ii) What will be the depreciation allowed, if machine S is sold instead
of machine L ?
(iii) What will be the depreciation allowed if both the machines S and
M are sold instead of machine L ?
(iv) What will be the depreciation allowed, if machine S is sold at
? 3,20,000 instead of machine L ?
(c) Illustrate the provisions related to the following expenditures of PGBP
as per Income Tax Act. (CO3)

(i) Payment for interest, royalty, fees for technical services or any
other sum under Section 40 (a) (i).
' • * ■
(ii) Payment to relatives shown in Profit & Loss Account.

4. (a) Analyze the provisions of clubbing of income in case of asset

transferred to spouse directly or indirectly without adequate

consideration with suitable examples in case of assets transferred is a

house property or other than house property. (CO4)
 A . _ 1___

(5) BCH-592

(b) Compute the taxable income in the following two situations for an

individual after set-off losses : fCO5>

- -- ——-- _—-- -- -- -------
Situation I Situation II
Particulars
(?) (?)
Income from Manufacturing Business
(Normal Business) 1,50,000 (3,60,000)

Income from Speculation Business (80,000) 3,50,000

Loss from a Specified Business u/S 35 AD (40,000) 40,000

Short-term Capital Gains (1,70,000) (1,70,000)

Agricultural Income (40,000) 60,000

___ ________ ___________ _____ ____ J
(c) What are the eligible payments which can be claimed as deductions

under Section 80 C and 80 D ? (CO 1)

5. (a) Define PAN (Permanent Account Number) and evaluate its importance

in current taxation environment. (CO5)

(b) Discuss the following definitions as per Income Tax Act: (CO6)

(i) Speculative Income , '

(ii) Block of Asset
(iii) Exemption of Commuted Pension
(iv) Agricultural income

P. T. 0.
 (6) BCH-502

(c) Mr. X, a resident, has provided the following particulars of his income
forP.Y. 2020-21 :

Income from salary (computed) ' 1,80,000

Income from house property (computed) 2,00,000

Agricultural income from a land in Jaipur 2,80,000

Expenses incurred for earning agricultural income 1,70,000

Compute his tax liability assuming his age is (i) 45 years; (ii) 70 years.
(CO5)

BCH-502 2.00
BCH-503
B. COM. (HONS.) (FIFTH SEMESTER) ;
END SEMESTER EXAMINATION, Nov.-Dec., 2021
. ENTREPRENEURSHIP AND SMALL BUSINESS
Time: Three Hours

Maximum Marks: 100

Note : (i) All questions are compulsory.
(ii) Answer any two sub-questions among (a), (b) and (c) in each main
. question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Describe the concept of entrepreneurship in detail. Also explain the

characteristics of entrepreneurs. . (CO1)
(b) Explain the types of entrepreneurship with the help of examples. (CO3)
(c) Describe in detail the economic and social factors affecting
entrepreneurial growth. (CO5)

2, (a) Explain the problems faced by women entrepreneurs. (CO2)

(b) Describe the challenges faced by family business in India. (CO5)
(c) What do you mean by rural entrepreneurs ? Explain the problems faced
' by them. KtS (004)

A T. O.
 (2)

3. (a) Who are Intrapreneurs ? Differentiate them from entrepreneurs. (CO3)

(b) What do you mean by business opportunity ? Explain the sources of
identifying business opportunity. (CO3)
(c) Write a note on Liberalization, Privatization and Globalization. (CO4)

4. (a) Explain the concept of project appraisal. Also describe its types. (CO3)
. (fe) What do you mean by CSR ? Explain its benefits to business, (CO5)
(c) Explain Clarence Danhoffs classification of entrepreneurs with
examples. (CO2)

5. (a) What do you mean by Franchising ? Explain its benefits in detail. (CO3)
(b) What is e-Comjnerce 2 Explain its types with the help of examples.
1 ‘ (CO1)
(c) Write a note on Agri-entrepreneurship and Social entrepreneurship.
(CO4)

2-00
BCH-503
 Roil No.

BCH-5O4(F1)
B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
MANAGEMENT ACCOUNTING
Time: Three Hours
Maximum Marks : 100 *
Note : (i) All questions are compulsory.
(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.
1. (a) “Management Accounting has been evaluated to meet the needs of
Management.” Explain this statement fully. (CO1)
(b) The following are the forecast related to wages and factory expenses :
(CO5)
Wages Factory Expenses
Months
cn CO
July 32,000 . 5,000
August 32,000 5,000
September 32,000 5,000
October ' 40,000 5,000
November 32,000 5,000

P. T. O.
 (2) BCH~SO4(F1)

One-eighth of wages and half of factory expenses are paid in the

succeeding month. Estimate the amount of wages and factory expenses
payable in September, October and November.
(c) Explain the concept of Standard Costing. Describe its advantages and
limitations. (CO2)
2. (a) Describe variance analysis. How can these variances be classified ?
(CO2)
(b) Financial information of Mehta Co. Ltd. are available as below: (CO4)
Current Ratio 2.5
Liquid Ratio ‘ 1.6
Working Capital , <■ f 60,000
Reserve and Surplus ? 40,000
Long-term loans NIL
Nominal Assets NIL
You are require to calculate :
(i) Current Assets
(ii) Current Liabilities
(iii) Liquid Assets
(iv) Stock
(c) Prepare a format of cash flow statement as per AS-3 taking imaginary
figures. (CO3)

3. (a) Fixed and flexible budget is prepared by the businesses for their future
predictions an decision-making. You have to recommend which of the
two budgets is more useful for business. (CO5)
 (3) BCH”5O4(F1)

(b) Rameshwari Bakery Ltd. produces three products all of which require
sugar. The monthly sales, marginal cost of sales and sugar consumption
are as under: ' (CO6)

-. Particulars Total Rusk Biscuit Cake

Sales (?) 45,000 15,000 18,000 12,000
Marginal cost of sales (?) 29,400 9,000 12,000 fc,400
Sugar consumed 2310 kg 750 kg 1200 kg 360 kg
Sales (?) 45,000 15,000 18,Off 12,000

Due to Govt, restrictions sugar quota has been reduced to 1500 kg per
month. Investigate and suggest a suitable product mix.
(c) Determine the main heads under which different activities of cash flows
are been categorized by giving suitable example. (CO3)
J
4. (a) Differentiate between Management Accounting and Financial
Accounting. Also explain the limitations of Management Accounting.
. (CO4)
(b) A firm produces and sells three products X, Y, Z. From the following
data you are required to assess the overall PA7 ratio of the firm : (CO5)
r..... .... Selling price per Variable cost per
Product No. of units sold
unit (?) unit (?)

X 2000 100 60
Y 1000 120 90
Z . 1600 , 50 25
Fixed cost is ? 60,000 per year. •

P. T. O.
 m io io"

Roll No.

BCH-5O4(M1)
B. COM. (HONS.) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
MARKET RESEARCH
Time : Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.
(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Define Market Research. Write in detail about the “development of

market research” in detail. (CO1, CO2)
(b) “Market Research is Art or an Science.” Explain. (CO1,CO2)
(c) Explain the scope of market research with suitable examples.
(CO1,CO2)
2. (a) What do you understand by “Application” of market research^ ?
Summarize it with reference to marketing. (CO2)
(b) Explain the objectives of the market research. (CO2)
(c) What do you understand by “Evolution of Marketing” ? Discuss. (CO2)

P. T. O.
 (2)

3. (a) “Market Research can be applied at every step in marketing.” Relate

and explain how a marketer can use it to improve its sales. (CO3)

(b) How would you apply the research process in doing a research in
marketing ? Explain with the help of an example. (CO3)

(c) How an “Focus Group” is applied to take decision in business ?

Discuss. (CO3)

4. (a) Illustrate the process of “Focus Group” method in detail. (CO4)

(b) Analyze the differences between the primary and secondary data in
detail. Which data is more useful in research ? (CO4)

(c) Analyze any two concepts of marketing. (CO4)

5. (a) How would you eliminate uncertainty in data—by method of intuition

and science ? (CO5, CO6)

(b) Designing is an important aspect of research. Write a detailed note on

research design. (CO5, CO6)

(c) Write and explain how an research report is written in detail.

(CO5, CO6)

BCH-5O4(M1)
50
 Roll No...................................

BCH-5O4(H1)
B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
ORGANIZATIONAL BEHAVIOUR

Time : Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Explain the meaning of Organizational Behaviour. Explain in detail the

approaches of Organizational Behaviour. (CO1)
(b) Describe in detail the models of Organizational Behaviour and give
examples of each model. (CO1)
(c) Discuss the sources of values and explain the types of values in detail.
Also give examples to support your answer. (CO2)

2. (a) Discuss the challenges faced by a manager in this present work

environment. (CO2)

. 1 P. T. O.
 (2)

(b) Differentiate between the individual behaviour and the group

behaviour. (CO3)
(c) Categorise the various types of groups. Explain in detail the stages of
group formation. (CO4)

3. (a) Illustrate conflict resolution process. Give the conflict resolution

process. (CO3)
(b) Classify and give all the conflict resolution skills helpful to manage
conflict. (CO4)
(c) Explain the factors contributing to political behaviour in an
organization. (CO4)

4. (a) Summarize what makes each culture unique. Give the five main
determinants of organizational culture. (CO2)
(b) Illustrate the benefits of having a diverse work force in an organization.
(CO3)
(c) Evaluate the benefits of Organizational Development and discuss it.
(CO5)

5. (a) Write a note on how to manage workplace stress. (CO6)

(b) Write about the importance of emotional intelligence at workplace.
(CO6)
(c) “Understanding Organizational Behaviour has an important place in our
everyday work life at organization.” Discuss. (CO2)

BCH-5O4(H1)
 \

BCH-505(F2)
B. COM. (H) (FIFTH SEMESTER)

END SEMESTER EXAMINATION, Nov.-Dec., 2021

AUDITING

Time: Three Hours

Maximum Marks: 100

Note : (i) Al! questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.

(iii) Total marks in each main question are twenty.

J
(iv) Each question carries 10 marks.

1. (a) Define audit. Discuss the objectives of auditing. (CO2)

(b) Define the following : (CO1)

(i) Voluntary audit

(ii) Interim audit

(iii) Cut-off procedure 6/ •

(iv) Ceiling on the number of audits allowed to an auditor.

p. t. a
 (2) BCH-505(F2)

(c) Write notes on the following : (CO1)

(i) Audit Committee

I . . •

(ii) Audit certificate

(iii) Tax audit

(iv) Objectives of management audit

2. (a) Discuss the steps to audit an educational institution or society. (CO2)

(b) Express the following : (CO2)
(i) SA 200
(ii) Audit certificate
(iii) EDP - *
(iv) CAAT
(c) Extend the steps to vouch/verify : (CO3)
(i) inventories
(ii) outstanding expenses

3. (a) Summarize on the eligibility, qualification and disqualification of an

auditor. (CO3)
(b) “Audit Working Papers are property of an auditor.” Discuss. List the
contents of permanent and current audit file. (CO3)
(c) What is an audit report ? Prepare an imaginary clean report. (CO5)

4. (a) Explain the liabilities of a company auditor. (CO1)

(b) Point out the objectives of vouching. List the steps followed by an
auditor to vouch cash transactions. (CO4)
 (3)

(c) Differentiate between the following : (CO5)

(i) Financial audit and Cost audit
(ii) Financial audit and Management audit

5. (a) “Internal Control System is a support to auditor.” Enumerate the kinds

of ICS. (CO4)
I

(b) Differentiate between the first and subsequent auditor. Discuss the
provisions regarding the appointment of first auditor. (CO4)
■ J

(c) Hypothesize the substantive and compliance procedures followed to

obtain evidence. , > ■ (CO5)

BCH-505(F2) ISO
 Roll No.......................

BCH-505(M2)
B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
INTEGRATED MARKETING COMMUNICATIONS
Time : Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.
(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Explain the importance of the concept of integrated marketing

communication in the present times. (CO 1)
(b) What were the major milestones in the evolution of IMC ? (CO1)
(c) Explain in brief the various elements of IMC with their relative
strengths and weaknesses. (CO1)

2. (a) What do you understand by AIDA model of advertising ? (CO2)

(b) What do you understand by the concept of creativity in promotions ?
Explain with some examples. (CO2)
(c) Explain the role and importance of media planning. (CO2)

P. T. O.
 (2)

3. (a) Explain the scope of different types of sales promotion techniques

commonly adopted. (CO3)
(b) Compare publicity and advertising. (CO3)
(c) What is the objective and types of corporate advertising ? (CO3)

4. (a) Explain the importance of direct selling giving relevant examples.

(CO4)
(b) What is mobile promotions ? Explain some forms and importance of
mobile promotions. (CO4)
(c) What are the ways to measure the effectiveness of personal selling ?
(CO4)
5. (a) Design a suitable promotion campaign for a new fast food cafe started
by young entrepreneurs. (CO5)
(b) Giving relevant examples from the world of advertising, highlight the
importance of ethics and social responsibility. (CO5)
(c) “ASCI has been the watchdog of the advertising industry” Do you
agree. Explain in context of the role of ASCI in the present times. (CO5)

BCH-505(M2)
 Roll No.......................

BCH-505(H2)
B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
HUMAN RESOURCE DEVELOPMENT

Time: Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) What are the factors that affect the Human Resource Planning ? (CO6)
(b) Why is human resource planning required in an organization ? Explain
with examples. (CO1)
(c) What is the use of HR forecasting ? Explain few methods of forecasting.

(CO1)
2. (a) What is Succession Planning ? Describe the steps involved in it. (CO5)
(b) How does the external environment of business affect HRP ? Explain
with examples. (CO2)
4S
P. T. O.
 (2)

(c) ‘Planning is better than no Planning’ as it is said, explain the importance

of HRP in light of this statement. (CO4)

3. (a) What is Human Resource Information System ? What is the scope of IT

in HRP ? (CO5)
(b) Make a Human Resource Plan for a resort at any place of your choice in
India. Give a narrative of the business plan and mainly devise the plan
for with respect to its manpower and appropriate use of it in order to
make it a success. (CO2)
(c) Define HRD. What are the objectives of HRD ? Give the benefits of
HRD. (CO2)

4. (a) Explain all the subsystems of HRD, justifying their importance. (CO3)
(b) Elaborate on the current trends of HRD in India. (CO5)
(c) What are the objectives of training ? How are training needs identified ?
(CO4)
5. (a) Explain the roles which a HRD Manager has to play and what are the
competencies required to justify his job. (CO2)
(b) What is Career Development ? What are the components of career
development ? (CO4)
(c) Explain the concept of Learning Organization. What are the elements
required to develop an organization into a Learning Organization ?
(CO3)

BCH-505(H2) 50
 Roll No...........................

BCH-501(ACCA)
B. COM. (HONS.) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
FINANCIAL MANAGEMENT
Time : Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Write a detailed note on relevance of ratio analysis in financial decision­

making. Discuss in detail different types of financial ratios. (CO1)
(b) Write a detailed note on theories of capital structure. Draw a contract
between operating gearing and financial gearing. (CO1)
(c) Write a detailed note on various short-term and long-term sources of
finance. (CO1)

2. (a) State the role of cost of capital in financial decision. Elaborate the
concept of weighted average cost of capital (WACC) highlighting the
computational process. (CO2)

P. T. O.
O$
 (2) BCH-501(ACCA)

(b) Discuss in detail dividend theories. Differentiate between dividend

relevance and dividend irrelevance theories. (CO2)
(c) “A subsidized college canteen service is to be evaluated by the local
council to assess, amongst other things, whether it is financially sound
and offers value for money.” Suggest appropriate measures of
achievement that could be set for the service. (CO2)
3. (a) In the light of investment appraisal, assess the importance of relevant
cost. Critically examine payback method of investment appraisal. (CO3)
(b) Calculate the present value of the following, assuming a discount rate of
10%: (CO3)
(i) $ 3,000 received in one year’s time and for ever
(ii) $ 3,000 received in one year’s time, then growing by 2% per annum
in perpetuity.
(c) Taking a hypothetical example, illustrate the adjustment of inflation,
tax, depreciation and working capital in investment appraisal. (CO3)
4. (a) A decision has to be made on replacement policy for vans. A van costs
$ 12,000 and the following additional information applies : (CO4)
Asset sold at Trade-in Asset kept Maintenance cost at
end of year allowance (in $) for the end of year (in $)

1 9,000 1 year 0

2 7,500 2 years 1,500 in 1st year

3 7,000 3 years 2,700 in 2nd year

Calculate the optimal replacement policy at a cost of capital of 15%.

Note : That the asset is only maintained at the end of the year if it is to
be kept for a further year, i.e., there are no maintenance costs in
the year of replacement. Ignore taxation and inflation.
 (3) BCH-501(ACCA)

(b) A company has estimated cash flows for a project, incorporating the
probability of each present cash flow value into its estimates as follows :
(CO4)
Year 1 Year 2
Present cash flow Probability Present cash flow Probability
$ 100,000 20% $ 200,000 30%
$ 200,000 80% $ 300,000 70%
The proposed investment will cost $ 400,000, payable in full at the start
of the project.
Calculate the following figures :
(i) The mean (expected) present cash flow in year 1
(ii) The mean (expected) present cash flow in year 2
(iii) The mean (expected) NPV of the investment
(iv) The probability of the investment having a negative NPV
(v) The probability of the investment having a $ 0 NPV
(c) Marlboro Co. estimates the following figures for the coming
year: (CO4)
Sales—all on credit $ 3,600,000
Receivables $ 3,06,000
Gross profit margin* 25% on sales
Finished goods $ 200,000
Work-in-progress $ 350,000
Raw materials (balance held) $ 150,000
Trade payables $ 130,000

P. T. O.
 (4) BCH-501(ACCA)

Inventory levels are constant.

* Raw materials are 80% of cost of sales—all on credit.
Using above data, you are required to calculate the cash operating cycle.

5. (a) D. Co. uses component V22 in its construction process. The company
has a demand of 45000 components p.a. They cost $ 4.50 each. There is
no lead-time between order and delivery, and ordering costs amount to
$ 100 per order. The annual cost of holding one component in inventory
is estimated to be $ 0.65. A 0.5% discount is available on orders of at
least 3000 components and a 0.75% discount is available if the order
quantity is 6000 components or above. You are required the calculate to
optimal order quantity. (CO5)
(b) Paisley Co. has sales of $ 20 million for the previous year, receivables
at the year-end of $ 4 million and the cost of financing receivables is
covered by an overdraft at the interest rate of 12% p.a. It is now
considering offering a cash discount of 2% for payment of debts within
10 days. Evaluate the offer and suggest should this new offering of cash
discount be introduced if 40% of customers will take up the discount.
(CO5)
(c) Taking a hypothetical example, evaluate the applicability of different
cash management models. (CO5)

BCH-501(ACCA)
50
BCH-503(ACCA)
B. COM. (HONS.) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
AUDIT AND ASSURANCE

Time : Three Hours

Maximum Marks: 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.

(iii) Total marks in each main question are twenty.

(iv) Each question carries 10 marks.

1. (a) Describe and explain the five components of internal control. (CO1)

(b) Describe control objectives, control procedures, control activities, key

controls and tests of control in relation to the Cash System. (CO1)

(c) Describe the auditor’s responsibility with regard to auditor

independence, conflicts of interest and confidentiality. (CO1)

2. (a) Differentiate between Interim Audit and Final Audit. (CO2)

(b) Differentiate between Internal Audit and External Audit. (CO2)

P. T. O.
 (2) BCH-503(ACCA)

(c) Identify and discuss the differences between statistical and non-
statistical sampling. (CO2)

3. (a) (i) ISA 300 Planning an Audit of Financial Statements provides

guidance to auditors. Planning an audit involves establishing the
overall audit strategy for the engagement and developing an audit
plan. Adequate planning benefits the audit of financial statements
in several ways. (CO3)
Required : Explain the importance of audit planning.
(ii) You are the audit senior in charge of the audit of Swandive Co.
(Swandive), and have been informed by your audit manager that
during the year a fraud occurred at the client. A payroll clerk set up
fictitious employees and the wages were paid into the clerk’s own
bank account. This clerk has subsequently left the company, but the
audit manager is concerned that additional frauds have taken place
in the wages department.
Required : Describe procedures which should be undertaken
during the audit of wages as a result of the manager’s
assessment of the increased risk of fraud. (CO3)
(b) Bluebird Enterprises Co. (Bluebird) is a retail company planning to list
on a stock exchange within the next six months, and management has
been advised by the company’s auditors about the need for compliance
with corporate governance provisions. In particular, the finance director
is looking to recruit non-executive directors as he understands that
Bluebird will need to establish an audit committee.
 (3) BCH-503(ACCA)

The finance director has two potential non-executive directors whom he

is considering approaching to join the Board of Bluebird. Antony
Goldfinch is currently an executive sales director of a listed multi­
national banking company; he sits on an audit committee of another
company as a non-executive director and is agreeable to being paid a
fixed fee which is not related to profits. Jacob Mallard is currently a
finance director of a small retail company, which does not compete with
Bluebird; he has expressed an interest in a fixed seven-year contract and
he is the brother of Bluebird’s chief executive.

(A) Explain the benefits to Bluebird Enterprises Co. of establishing an

audit committee.

(B) Discuss the advantages and disadvantages of appointing :

(i) Antony Goldfinch

(ii) Jacob Mallard as non-executive directors of Bluebird

Enterprises Co. (CO3)

(c) Explain the different types of Audit Risk and how to overcome them
with the help of examples.

4. (a) You are an audit supervisor of Halley & Co. and you are reviewing the
documentation describing Comet Publishing Co.’s purchases and
payables system in preparation for the interim and final audit for the
year ending 30 September, 20X7. The company is a retailer of books
and has ten stores and a central warehouse, which holds the majority of
the company’s inventory.

P. T. O.
 (4) BCH-503(ACCA)

Your firm has audited Comet Publishing Co. for a number of years and
as such, audit documentation is available from the previous year’s file,
including internal control flowcharts and detailed purchases and
payables system notes. As far as you are aware, Comet Publishing Co.’s
system of internal control has not changed in the last year. The audit
manager is keen for the team to utilise existing systems documentation
in order to ensure audit efficiency. An extract from the existing systems
notes is provided below.
Extract of purchases and payables system
Store managers are responsible for ordering books for their shop. It is
not currently possible for store managers to request books from any of
the other nine stores. Customers who wish to order books, which are not
in stock at the branch visited, are told to contact the other stores directly
or visit the company website. As the inventory levels fall in a store, the
store manager raises a purchase requisition form, which is sent to the
central warehouse. If there is insufficient inventory held, a supplier
requisition form is completed and sent to the purchase order clerk,
Oliver Dancer, for processing. He sends any orders above $1,000 for
authorization from the purchasing director.
Receipts of goods from suppliers are processed by the warehouse team,
who agree the delivery to the purchase order, checking quantity and
quality of goods and complete a sequentially numbered goods received
note (GRN). The GRNs are sent to the accounts department every two
weeks for processing.
 (5 ) BCH-503(ACCA)

On receipt of the purchase invoice from the supplier, an accounts clerk

matches it to the GRN. The invoice is then sent to the purchase ordering
clerk, Oliver, who processes it for payment. The finance director is
given the total amount of the payments list, which she authorizes and
then processes the bank payments. Due to staff shortages in the accounts
department, supplier statement reconciliations are no longer performed.

Other information-conflict of interest

Halley & Co. has recently accepted the audit engagement of a new
client, Edmond Co., who is the main competitor of Comet Publishing
Co. The finance director of Comet Publishing Co. has enquired how
Halley & Co. will keep information obtained during the audit
confidential.

In respect of the purchases and payables system for Comet Publishing

Co.: (CO4)

(i) Identify and explain five deficiencies.

(ii) Recommend a control to address each of these deficiencies

(b) You are an audit supervisor of Cupid & Co., planning the final audit of
a new client, Prancer Construction Co., for the year ending
30 September, 20X7. The company specialises in property construction
and providing ongoing annual maintenance services for properties
previously constructed. Forecast profit before tax is $13.8 m and total
assets are expected to be $22.3 m, both of which are higher than for the
year ended 30 September, 20X6.

P. T. 0.
 (6) BCH-503(ACCA)

You are required to produce the audit strategy document. The audit
manager has met with Prancer Construction Co.’s finance director and
has provided you with the following notes, a copy of the August
management accounts and the prior year financial statements.
Meeting notes
The prior year financial statements recognize work-in-progress of
$1.8 m, which was comprised of property construction in progress as
well as ongoing maintenance services for finished properties. The
August 20X7 management accounts recognize $2.1 m inventory of
completed properties compared to a balance of $1.4 m in September
20X6. A full year-end inventory count will be undertaken on 30
September at all of the 11 building sites where construction is in
progress. There is not sufficient audit team resource to attend all
inventory counts.
In line with industry practice, Prancer Construction Co. offers its
customers a five-year building warranty, which covers any construction
defects. Customers are not required to pay any additional fees to obtain
the warranty. The finance director anticipates this provision will be
lower than last year as the company has improved its building practices
and therefore the quality of the finished properties.
Customers who wish to purchase a property are required to place an
order and pay a 5% non-refundable deposit prior to the completion of
the building. When the building is complete, customers pay a further
92.5%, with the final 2.5% due to be paid six months later. The finance
 (7) BCH-503(ACCA)

director has informed you that although an allowance for receivables

has historically been maintained, it is anticipated that this can be
significantly reduced.
Information from management accounts
Prancer Construction Co.’s prior year financial statements and August
20X7 management accounts contain a material overdraft balance. The
finance director has confirmed that there are minimum profit and net
assets covenants attached to the overdraft. A review of the management
accounts shows the payables period was 56 days for August 20X7,
compared to 87 days for September 20X6. The finance director
anticipates that the September 20X7 payables days will be even lower
than those in August 20X7.
Required : Using all the information provided describe five audit risks
and explain the auditor’s response to each risk, in planning the audit of
Prancer Construction Co.
Note : Prepare your answer using two columns headed audit risk and
auditor’s response respectively. (CO4)
(c) Dashing Co. manufactures women’s clothing and its year end was
31 July, 20X7. You are an audit supervisor of Jaunty & Co. and the
year-end audit for Dashing Co. is due to commence shortly.
The draft financial statements recognize profit before tax of $2.6 m and
total assets of $18 m. You have been given responsibility for auditing
receivables, which is a material balance, and as part of the audit
approach, a positive receivables circularization is to be undertaken.

P. T. O.
 (8) BCH-503(ACCA)

At the planning meeting, the finance director of Dashing Co. informed

the audit engagement partner that the company was closing one of its
smaller production sites and as a result, a number of employees would
be made redundant. A redundancy provision of$ 110,000 is included in
the draft financial statements.
(A) Describe the steps the auditor should perform in undertaking a
positive receivables circularization for Dashing Co.
(B) Describe substantive procedures, other than a receivables
circularization, the auditor should perform to verify each of the
following assertions in relation to Dashing Co.’s receivables :
(i) Accuracy, valuation and allocation
(ii) Completeness
(iii) Rights and obligations (CO4)

5. (a) Analyze the structure and roles of audit committees and discuss their
benefits and limitations. (CO5)
(b) Explain the purpose of a subsequent events review. Discuss the
procedures to be undertaken in performing a subsequent events
review. (CO5)
(c) List and explain the elements of an assurance engagement. Explain the
term ‘limited assurance’ in the context of an examination of a
company’s cash flow forecast and explain how this differs from the
assurance provided by an external audit. (CO5)

BCH-503(ACCA) 50
 IS 4
Au vw»-S_ 7c<;

Roll No.

BCH-5O4(F1)(ACCA)
B. COM. (H) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec., 2021
CORPORATE REPORTING

Time : Three Hours

Maximum Marks : 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.
(iii) Total marks in each main question are twenty.
(iv) Each question carries 10 marks.

1. (a) Determine the nature and extent of reportable segments. (CO1)

(b) An entity has the following items of inventory : (CO1)
(i) Raw materials costing $15,000 bought for processing and assembly
for a profitable special order. Since buying these items the cost
price of the raw materials has fallen to $12,000.
(ii) Equipment constructed for a customer for an agreed price of
$20,000. This has recently been completed at a cost of $15,800. It
has now been discovered that, in order to meet certain regulations,

P. T. O.
 (2) BCH-5O4(F1)(ACCA)

conversion with an extra cost of $4,200 will be required. The

customer has accepted partial responsibility and agreed to meet half
the extra cost. You are required to calculate in accordance with IAS
2 Inventories, at what amount should the above items be valued ?

(c) On 1 Jan., 2011, a farmer had a herd of 120 cows, all of which were
2 years old. At this date, the FV less point of sale costs of the herd was
$12,000. On 1 July, 2011, the farmer purchased 20 cows (each two and
half years old) for $60 each.

As at 31 Dec., 2011, three year old cows sell at market for $90 each.
Market auctioneers have charged a sales levy of 2% for many years.

You are required to discuss the accounting treatment of the above in the
F/Ss for the year ended 31 Dec., 2011. (CO1)

2. (a) Discuss the accounting implications of the first time adoption of new
accounting standards. (CO2)

(b) Discuss and apply the initial recognition and measurement of financial
instruments. (CO2)

(c) Discuss and apply the derecognition of financial assets and financial
liabilities. (CO2)

3. (a) Discuss the acquisition method of accounting for a business

combination. (CO3)

(b) Determine the nature and extent of reportable segments. (CO3)

(c) How are derivatives dealt with under IFRS 9 ? (CO3)

 (3)

4. (a) Outline and apply the translation of foreign currency amounts and
transactions into the functional currency and the presentational
currency. (CO4)
(b) Discuss and apply the relevant indicators of financial and non-fmancial
performance with special reference to earning per share. (CO4)
(c) Discuss the accounting implications of the first time adoption of new
accounting standards. (CO4)

5. (a) What could the investor perspective in regards to the free cash flows
under Analysis and Interpretation ? (CO5)

(b) Analyse and discuss in your own words the problems of deferred tax
and financial instruments under the current issues. (CO5)

(c) Identify the issues and deficiencies which has led to proposed changes
to an accounting standard. (CO5)

BCH-5O4(F1)(ACCA)
 Roll No............................. «...

BCH-505(F2)(ACCA)
B. COM. (HONS.) (FIFTH SEMESTER)
END SEMESTER EXAMINATION, Nov.-Dec, 2021

ADVANCE PERFORMANCE MANAGEMENT

Time : Three Hours

Maximum Marks: 100

Note : (i) All questions are compulsory.

(ii) Answer any two sub-questions among (a), (b) and (c) in each main
question.

(iii) Total marks in each main question are twenty.

(iv) Each question carries 10 marks.

1. (a) (i) Explain Big Data. What are its characteristics ? (CO1)

(ii) Internet vs. Extranet

(b) Explain the term Benchmarking. What are the steps involved in the
process of benchmarking ? (CO 1)

(c) What do you mean by transfer pricing ? Explain general rules for
transfer pricing. (CO 1)

^9
P. T. O.
 (2) BCH-505(F2)(ACCA)

2. (a) What do you understand by Stakeholder mapping ? How is it useful for

the manager in resolving the stakeholder conflicts ? (CO2)

(b) What is Business Integration ? Explain McKinsey’s 7 S model for

understanding integrated processes. (CO2)

(c) Write short notes on the following : (CO2)

(i) Triple Bottom Line

(ii) PEST

3. (a) Identify the needs of functional structure and its implications for
performance management. (CO3) f

(b) “There are a number of common mistakes and misconceptions that

people make when using numerical data for performance
measurement.” Discuss various problems faced while dealing with
quantitative data. (CO3)

(c) Classify the various internal and external sources of information which
act as an aid to the management information. (CO3)

4. (a) “CSFs are the vital areas where things must go right.” Appraise the
statement, highlighting the prime sources of CSFs with regard to
strategic planning. (CO4)

(b) Illustrate how Porter’s five forces are used to identify the issues in the
external environment. (CO4)

(c) State various budgeting techniques and evaluate their relative strengths
and weaknesses. (CO4)
 (3)

5. (a) ABC Ltd. whose cost of capital is 10% is considering two mutually
exclusive projects A and B, the cash flows of which are as below :

Project A Project B
Year
(?) (?)
0 (50,000) (80,000)

1 62,500 96,170

Suggest which project should be taken up using (i) NPV method and
(ii) The IRR. (CO5)

Year P. V. Factor at 10%

1 0.909

2 0.826

3 0.751

4 0.683

5 0.621

(b) Critically evaluate the BCG matrix. (CO5)

(c) Evaluate the four different reward methods along with different
performance related pay. (CO5)

BCH-505(F2)(ACCA) 50