Lucknow University B.Com. (NEP) 3rd Semester Question Papers 2026
This page contains complete, previous-year-style model question papers for all 4 core B.Com Semester III papers under the Lucknow University NEP syllabus: Corporate Accounting, Statistical Methods, Income Tax Law and Accounts, and Managing Human Resources. Each subject has 5 full model sets (Set A to Set E), with 10 questions per set of 15 marks each (answer any five, maximum marks 75), prepared by LUUPDATE for focused exam practice. These are B.Com Semester III old-paper-style question banks meant to help you understand the exact pattern, unit-wise weightage and difficulty level you should expect in your actual university examination for the BCom NEP Semester III question paper.
Corporate Accounting (Major A - Paper P-5)
Corporate Accounting (Major A, Paper P-5, 4 Credits) covers Share Capital and Debentures (issue, forfeiture, re-issue, bonus shares and redemption), Amalgamation and Absorption of Companies, Internal Reconstruction, and Liquidation of Companies (Statement of Affairs, Deficiency Account and Liquidator's Final Statement of Account). Time: 3 Hours, Maximum Marks: 75. Answer any five of the ten questions given below; all questions carry equal marks (15 each). The five sets below (Set A to Set E) give you full practice coverage across every unit of the syllabus.
Set A
Q1. Explain the meaning of share capital. Describe the various kinds of shares that a company can issue under the Companies Act, along with the procedure for issue of shares. [15]
Q2. XYZ Ltd. issued 10,000 equity shares of Rs.10 each at a premium of Rs.2 per share, payable as follows: on application Rs.3, on allotment Rs.5 (including premium), and on first and final call Rs.4 per share. All the money due was received except from Mohan, who was allotted 200 shares, and who failed to pay the allotment and call money. His shares were accordingly forfeited. Later, all the forfeited shares were re-issued to Rakesh as fully paid-up at Rs.8 per share. Pass the necessary journal entries for forfeiture and re-issue of shares in the books of the company. [15]
Q3. The Balance Sheet of a company discloses 10,000 8% Redeemable Preference Shares of Rs.100 each, fully paid up, along with a General Reserve of Rs. 600,000. The company decided to redeem these preference shares at a premium of 10%. For this purpose, it issued 60,000 new equity shares of Rs.10 each at par, and the balance requirement was met out of the General Reserve, along with the premium payable on redemption (there being no balance in the Securities Premium Account). Pass the necessary journal entries in the books of the company for the redemption of preference shares, including the entry for the transfer to the Capital Redemption Reserve Account. [15]
Q4. What do you mean by Amalgamation? Explain the different types of amalgamation as prescribed under Accounting Standard 14 (AS-14), 'Accounting for Amalgamations'. [15]
Q5. Vishnu Ltd. agreed to absorb the business of Shiva Ltd. as on 31st March, 2026, taking over its assets and liabilities on the following terms: Land & Building at Rs. 700,000, Plant & Machinery at Rs. 450,000, Stock at Rs. 200,000, Sundry Debtors at Rs. 150,000 and Cash at Rs. 50,000; Sundry Creditors at Rs. 150,000 and Bank Loan at Rs. 50,000 were also taken over. The purchase consideration was to be discharged by Vishnu Ltd. by issuing 100,000 equity shares of Rs.10 each at Rs.13 per share to the shareholders of Shiva Ltd., along with Rs. 150,000 in cash. Compute the amount of Purchase Consideration under the Net Payment Method, and also calculate the amount of Net Assets taken over, clearly bringing out the amount of Goodwill or Capital Reserve arising on absorption. [15]
Q6. Ram Ltd. is absorbed by Shyam Ltd. on 1st April, 2026. Shyam Ltd. agreed to take over the assets of Ram Ltd. at agreed values of Land & Building Rs. 700,000, Plant & Machinery Rs. 450,000, Stock Rs. 200,000, Sundry Debtors Rs. 150,000 and Cash Rs. 50,000, and to discharge Sundry Creditors of Rs. 150,000 and Bank Loan of Rs. 50,000. The purchase consideration of Rs. 1,450,000 was discharged by Shyam Ltd. through issue of 100,000 equity shares of Rs.10 each at Rs.13 per share and the balance in cash. Pass the necessary journal entries for the above amalgamation (i) in the books of Ram Ltd. (Transferor Company) to close its books, and (ii) in the books of Shyam Ltd. (Transferee Company) to record the business taken over. [15]
Q7. Explain the concept and the need for corporate reconstruction. Distinguish between Internal Reconstruction and External Reconstruction. [15]
Q8. The following is the Balance Sheet of Bharat Ltd. as at 31st March, 2026: The Company adopted the following scheme of internal reconstruction, duly approved by the Court: (i) Equity Shares of Rs.10 each be reduced to fully paid-up Equity Shares of Rs.4 each; (ii) 9% Preference Shares of Rs.100 each be reduced to fully paid-up Preference Shares of Rs.70 each; (iii) Goodwill and the debit balance of Profit & Loss Account be written off in full; (iv) Land & Building be appreciated to Rs. 450,000; (v) Plant & Machinery be written down to Rs. 260,000 and Stock be written down to Rs. 180,000; and (vi) the balance remaining in the Capital Reduction Account, if any, be transferred to Capital Reserve. Pass the necessary journal entries to give effect to the above scheme and prepare the Balance Sheet of the company immediately after the reconstruction. [15]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Equity Share Capital (100,000 shares of Rs.10 each) | 1,000,000 | Goodwill | 100,000 |
| 9% Preference Share Capital (2,000 shares of Rs.100 each) | 200,000 | Land & Building | 400,000 |
| Sundry Creditors | 300,000 | Plant & Machinery | 300,000 |
| | Stock | 200,000 |
| | Sundry Debtors | 150,000 |
| | Cash at Bank | 50,000 |
| | Profit & Loss A/c (Dr. balance) | 300,000 |
| Total | 1,500,000 | Total | 1,500,000 |
Q9. The following particulars relate to Bharat Manufacturing Co. Ltd., which went into voluntary liquidation on 31st March, 2026: From the above information, prepare the Statement of Affairs of the company as on 31st March, 2026, and the Deficiency Account, clearly showing the amount of surplus/deficiency as regards members and reconciling it with the Deficiency Account. [15]
| Assets | Book Value (Rs.) | Estimated to Realise (Rs.) |
|---|
| Land & Building (mortgaged to Debenture holders) | 300,000 | 350,000 |
| Plant & Machinery | 250,000 | 180,000 |
| Stock-in-Trade | 150,000 | 120,000 |
| Sundry Debtors | 100,000 | 80,000 |
| Cash at Bank | 20,000 | 20,000 |
| Liabilities | Amount (Rs.) |
|---|
| Equity Share Capital (fully paid up) | 500,000 |
| 10% Debentures (secured by mortgage on Land & Building) | 200,000 |
| Sundry Creditors (unsecured) | 150,000 |
| Preferential Creditors (outstanding wages/taxes) | 20,000 |
| Profit & Loss A/c (Dr. balance) | 50,000 |
Q10. The Vikram Company Ltd. went into voluntary liquidation on 1st April, 2026. The following information is available regarding realisation of assets and settlement of claims: The liquidator is entitled to a remuneration of 3% on the amount realised from assets (excluding opening cash balance). Prepare the Liquidator's Final Statement of Account. [15]
| Particulars | Amount (Rs.) |
|---|
| Cash and Bank balance in hand on the date of liquidation | 20,000 |
| Amount realised from Land & Building | 400,000 |
| Amount realised from Plant & Machinery | 200,000 |
| Amount realised from Stock-in-Trade | 150,000 |
| Amount realised from Sundry Debtors | 130,000 |
| Liquidation expenses paid | 20,000 |
| 9% Debentures (secured, to be paid in full) | 250,000 |
| Preferential Creditors | 30,000 |
| Unsecured Creditors | 300,000 |
| 8% Preference Share Capital (2,000 shares of Rs.100 each, fully paid) | 200,000 |
| Equity Share Capital (4,600 shares of Rs.100 each, fully paid) | 460,000 |
Set B
Q1. What is a debenture? Explain the meaning of debentures and discuss in detail the different kinds of debentures that may be issued by a company. [15]
Q2. XYZ Ltd. issued 8,000 equity shares of Rs.10 each at a premium of Rs.3 per share, payable as follows: on application Rs.4, on allotment Rs.6 (including premium), and on first and final call Rs.3 per share. All the money due was received except from Sohan, who was allotted 300 shares, and who failed to pay the allotment and call money. His shares were accordingly forfeited. Later, all the forfeited shares were re-issued to Naresh as fully paid-up at Rs.9 per share. Pass the necessary journal entries for forfeiture and re-issue of shares in the books of the company. [15]
Q3. The Balance Sheet of a company shows 50,000 equity shares of Rs.10 each, fully paid up, a Securities Premium Account of Rs. 50,000 and a General Reserve of Rs. 300,000. The company decided to issue fully paid bonus shares to its existing equity shareholders in the ratio of 1 new share for every 2 shares held, utilising the Securities Premium Account fully and the balance out of the General Reserve. Pass the necessary journal entries in the books of the company for the issue of bonus shares, and state the amount of share capital after the bonus issue. [15]
Q4. Distinguish between Amalgamation and Absorption. Explain the concept of Purchase Consideration and describe the methods generally used for computing it. [15]
Q5. Vishnu Ltd. agreed to absorb the business of Shiva Ltd. as on 31st March, 2026, taking over its assets and liabilities on the following terms: Land & Building at Rs. 500,000, Plant & Machinery at Rs. 300,000, Stock at Rs. 150,000, Sundry Debtors at Rs. 100,000 and Cash at Rs. 30,000; Sundry Creditors at Rs. 100,000 and Bank Loan at Rs. 30,000 were also taken over. The purchase consideration was to be discharged by Vishnu Ltd. by issuing 70,000 equity shares of Rs.10 each at Rs.11 per share to the shareholders of Shiva Ltd., along with Rs. 100,000 in cash. Compute the amount of Purchase Consideration under the Net Payment Method, and also calculate the amount of Net Assets taken over, clearly bringing out the amount of Goodwill or Capital Reserve arising on absorption. [15]
Q6. Ram Ltd. is absorbed by Shyam Ltd. on 1st April, 2026. Shyam Ltd. agreed to take over the assets of Ram Ltd. at agreed values of Land & Building Rs. 500,000, Plant & Machinery Rs. 300,000, Stock Rs. 150,000, Sundry Debtors Rs. 100,000 and Cash Rs. 30,000, and to discharge Sundry Creditors of Rs. 100,000 and Bank Loan of Rs. 30,000. The purchase consideration of Rs. 870,000 was discharged by Shyam Ltd. through issue of 70,000 equity shares of Rs.10 each at Rs.11 per share and the balance in cash. Pass the necessary journal entries for the above amalgamation (i) in the books of Ram Ltd. (Transferor Company) to close its books, and (ii) in the books of Shyam Ltd. (Transferee Company) to record the business taken over. [15]
Q7. What is meant by alteration of share capital? Explain the various ways in which a company may alter its share capital under the Companies Act. [15]
Q8. The following is the Balance Sheet of Bharat Ltd. as at 31st March, 2026: The Company adopted the following scheme of internal reconstruction, duly approved by the Court: (i) Equity Shares of Rs.10 each be reduced to fully paid-up Equity Shares of Rs.5 each; (ii) 8% Preference Shares of Rs.100 each be reduced to fully paid-up Preference Shares of Rs.80 each; (iii) Goodwill and the debit balance of Profit & Loss Account be written off in full; (iv) Land & Building be appreciated to Rs. 380,000; (v) Plant & Machinery be written down to Rs. 220,000 and Stock be written down to Rs. 130,000; and (vi) the balance remaining in the Capital Reduction Account, if any, be transferred to Capital Reserve. Pass the necessary journal entries to give effect to the above scheme and prepare the Balance Sheet of the company immediately after the reconstruction. [15]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Equity Share Capital (80,000 shares of Rs.10 each) | 800,000 | Goodwill | 80,000 |
| 8% Preference Share Capital (1,500 shares of Rs.100 each) | 150,000 | Land & Building | 350,000 |
| Sundry Creditors | 250,000 | Plant & Machinery | 250,000 |
| | Stock | 150,000 |
| | Sundry Debtors | 120,000 |
| | Cash at Bank | 40,000 |
| | Profit & Loss A/c (Dr. balance) | 210,000 |
| Total | 1,200,000 | Total | 1,200,000 |
Q9. The following particulars relate to Bharat Manufacturing Co. Ltd., which went into voluntary liquidation on 31st March, 2026: From the above information, prepare the Statement of Affairs of the company as on 31st March, 2026, and the Deficiency Account, clearly showing the amount of surplus/deficiency as regards members and reconciling it with the Deficiency Account. [15]
| Assets | Book Value (Rs.) | Estimated to Realise (Rs.) |
|---|
| Land & Building (mortgaged to Debenture holders) | 400,000 | 460,000 |
| Plant & Machinery | 300,000 | 230,000 |
| Stock-in-Trade | 200,000 | 160,000 |
| Sundry Debtors | 150,000 | 120,000 |
| Cash at Bank | 30,000 | 30,000 |
| Liabilities | Amount (Rs.) |
|---|
| Equity Share Capital (fully paid up) | 650,000 |
| 9% Debentures (secured by mortgage on Land & Building) | 250,000 |
| Sundry Creditors (unsecured) | 200,000 |
| Preferential Creditors (outstanding wages/taxes) | 30,000 |
| Profit & Loss A/c (Dr. balance) | 50,000 |
Q10. The Vikram Company Ltd. went into voluntary liquidation on 1st April, 2026. The following information is available regarding realisation of assets and settlement of claims: The liquidator is entitled to a remuneration of 2% on the amount realised from assets (excluding opening cash balance). Prepare the Liquidator's Final Statement of Account. [15]
| Particulars | Amount (Rs.) |
|---|
| Cash and Bank balance in hand on the date of liquidation | 15,000 |
| Amount realised from Land & Building | 300,000 |
| Amount realised from Plant & Machinery | 160,000 |
| Amount realised from Stock-in-Trade | 110,000 |
| Amount realised from Sundry Debtors | 95,000 |
| Liquidation expenses paid | 15,000 |
| 10% Debentures (secured, to be paid in full) | 180,000 |
| Preferential Creditors | 20,000 |
| Unsecured Creditors | 200,000 |
| 9% Preference Share Capital (1,000 shares of Rs.100 each, fully paid) | 100,000 |
| Equity Share Capital (1,850 shares of Rs.100 each, fully paid) | 185,000 |
Set C
Q1. Distinguish between equity shares and preference shares. Also explain, in brief, the accounting procedure to be followed for the issue of shares at par, at premium and at discount. [15]
Q2. XYZ Ltd. issued 12,000 equity shares of Rs.10 each at par, payable as follows: on application Rs.3, on allotment Rs.3, and on first and final call Rs.4 per share. All the money due was received except from Rohit, who was allotted 250 shares, and who failed to pay the allotment and call money. His shares were accordingly forfeited. Later, all the forfeited shares were re-issued to Vikas as fully paid-up at Rs.7 per share. Pass the necessary journal entries for forfeiture and re-issue of shares in the books of the company. [15]
Q3. A company issued 5,000 12% Debentures of Rs.100 each at a discount of 5%, redeemable after 5 years at a premium of 10%. The company decided to create a Debenture Redemption Reserve equal to 10% of the nominal value of debentures issued, out of profits, before redemption. Pass the necessary journal entries in the books of the company for (i) the issue of debentures, and (ii) the redemption of debentures on the due date, assuming the company had sufficient bank balance to pay off the debenture holders. [15]
Q4. Explain, with reference to AS-14, the accounting treatment to be followed in the books of the Transferor Company at the time of amalgamation of companies. [15]
Q5. Vishnu Ltd. agreed to absorb the business of Shiva Ltd. as on 31st March, 2026, taking over its assets and liabilities on the following terms: Land & Building at Rs. 900,000, Plant & Machinery at Rs. 600,000, Stock at Rs. 300,000, Sundry Debtors at Rs. 200,000 and Cash at Rs. 60,000; Sundry Creditors at Rs. 200,000 and Bank Loan at Rs. 100,000 were also taken over. The purchase consideration was to be discharged by Vishnu Ltd. by issuing 130,000 equity shares of Rs.10 each at Rs.14 per share to the shareholders of Shiva Ltd., along with Rs. 200,000 in cash. Compute the amount of Purchase Consideration under the Net Payment Method, and also calculate the amount of Net Assets taken over, clearly bringing out the amount of Goodwill or Capital Reserve arising on absorption. [15]
Q6. Ram Ltd. is absorbed by Shyam Ltd. on 1st April, 2026. Shyam Ltd. agreed to take over the assets of Ram Ltd. at agreed values of Land & Building Rs. 900,000, Plant & Machinery Rs. 600,000, Stock Rs. 300,000, Sundry Debtors Rs. 200,000 and Cash Rs. 60,000, and to discharge Sundry Creditors of Rs. 200,000 and Bank Loan of Rs. 100,000. The purchase consideration of Rs. 2,020,000 was discharged by Shyam Ltd. through issue of 130,000 equity shares of Rs.10 each at Rs.14 per share and the balance in cash. Pass the necessary journal entries for the above amalgamation (i) in the books of Ram Ltd. (Transferor Company) to close its books, and (ii) in the books of Shyam Ltd. (Transferee Company) to record the business taken over. [15]
Q7. Explain the meaning of 'Reduction of Share Capital'. What is the legal procedure to be followed by a company for reduction of its share capital? [15]
Q8. The following is the Balance Sheet of Bharat Ltd. as at 31st March, 2026: The Company adopted the following scheme of internal reconstruction, duly approved by the Court: (i) Equity Shares of Rs.10 each be reduced to fully paid-up Equity Shares of Rs.6 each; (ii) 10% Preference Shares of Rs.100 each be reduced to fully paid-up Preference Shares of Rs.75 each; (iii) Goodwill and the debit balance of Profit & Loss Account be written off in full; (iv) Land & Building be appreciated to Rs. 560,000; (v) Plant & Machinery be written down to Rs. 300,000 and Stock be written down to Rs. 220,000; and (vi) the balance remaining in the Capital Reduction Account, if any, be transferred to Capital Reserve. Pass the necessary journal entries to give effect to the above scheme and prepare the Balance Sheet of the company immediately after the reconstruction. [15]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Equity Share Capital (120,000 shares of Rs.10 each) | 1,200,000 | Goodwill | 120,000 |
| 10% Preference Share Capital (2,500 shares of Rs.100 each) | 250,000 | Land & Building | 500,000 |
| Sundry Creditors | 350,000 | Plant & Machinery | 350,000 |
| | Stock | 250,000 |
| | Sundry Debtors | 180,000 |
| | Cash at Bank | 60,000 |
| | Profit & Loss A/c (Dr. balance) | 340,000 |
| Total | 1,800,000 | Total | 1,800,000 |
Q9. The following particulars relate to Bharat Manufacturing Co. Ltd., which went into voluntary liquidation on 31st March, 2026: From the above information, prepare the Statement of Affairs of the company as on 31st March, 2026, and the Deficiency Account, clearly showing the amount of surplus/deficiency as regards members and reconciling it with the Deficiency Account. [15]
| Assets | Book Value (Rs.) | Estimated to Realise (Rs.) |
|---|
| Land & Building (mortgaged to Debenture holders) | 250,000 | 290,000 |
| Plant & Machinery | 200,000 | 150,000 |
| Stock-in-Trade | 120,000 | 95,000 |
| Sundry Debtors | 90,000 | 70,000 |
| Cash at Bank | 15,000 | 15,000 |
| Liabilities | Amount (Rs.) |
|---|
| Equity Share Capital (fully paid up) | 400,000 |
| 12% Debentures (secured by mortgage on Land & Building) | 150,000 |
| Sundry Creditors (unsecured) | 120,000 |
| Preferential Creditors (outstanding wages/taxes) | 15,000 |
| Profit & Loss A/c (Dr. balance) | 10,000 |
Q10. The Vikram Company Ltd. went into voluntary liquidation on 1st April, 2026. The following information is available regarding realisation of assets and settlement of claims: The liquidator is entitled to a remuneration of 3% on the amount realised from assets (excluding opening cash balance). Prepare the Liquidator's Final Statement of Account. [15]
| Particulars | Amount (Rs.) |
|---|
| Cash and Bank balance in hand on the date of liquidation | 25,000 |
| Amount realised from Land & Building | 500,000 |
| Amount realised from Plant & Machinery | 260,000 |
| Amount realised from Stock-in-Trade | 190,000 |
| Amount realised from Sundry Debtors | 160,000 |
| Liquidation expenses paid | 25,000 |
| 11% Debentures (secured, to be paid in full) | 320,000 |
| Preferential Creditors | 35,000 |
| Unsecured Creditors | 380,000 |
| 8% Preference Share Capital (2,500 shares of Rs.100 each, fully paid) | 250,000 |
| Equity Share Capital (1,834 shares of Rs.100 each, fully paid) | 183,400 |
Set D
Q1. Explain the meaning of forfeiture of shares. Discuss the legal provisions and the accounting procedure to be followed by a company for the forfeiture and re-issue of forfeited shares. [15]
Q2. XYZ Ltd. issued 6,000 equity shares of Rs.10 each at a premium of Rs.4 per share, payable as follows: on application Rs.3, on allotment Rs.6 (including premium), and on first and final call Rs.5 per share. All the money due was received except from Kavita, who was allotted 150 shares, and who failed to pay the allotment and call money. His shares were accordingly forfeited. Later, all the forfeited shares were re-issued to Anita as fully paid-up at Rs.9 per share. Pass the necessary journal entries for forfeiture and re-issue of shares in the books of the company. [15]
Q3. The Balance Sheet of a company discloses 8,000 9% Redeemable Preference Shares of Rs.100 each, fully paid up, along with a General Reserve of Rs. 500,000. The company decided to redeem these preference shares at a premium of 5%. For this purpose, it issued 50,000 new equity shares of Rs.10 each at par, and the balance requirement was met out of the General Reserve, along with the premium payable on redemption (there being no balance in the Securities Premium Account). Pass the necessary journal entries in the books of the company for the redemption of preference shares, including the entry for the transfer to the Capital Redemption Reserve Account. [15]
Q4. What is meant by 'Amalgamation in the nature of merger' and 'Amalgamation in the nature of purchase' under AS-14? Distinguish clearly between the two. [15]
Q5. Vishnu Ltd. agreed to absorb the business of Shiva Ltd. as on 31st March, 2026, taking over its assets and liabilities on the following terms: Land & Building at Rs. 600,000, Plant & Machinery at Rs. 350,000, Stock at Rs. 180,000, Sundry Debtors at Rs. 120,000 and Cash at Rs. 40,000; Sundry Creditors at Rs. 120,000 and Bank Loan at Rs. 40,000 were also taken over. The purchase consideration was to be discharged by Vishnu Ltd. by issuing 80,000 equity shares of Rs.10 each at Rs.12 per share to the shareholders of Shiva Ltd., along with Rs. 110,000 in cash. Compute the amount of Purchase Consideration under the Net Payment Method, and also calculate the amount of Net Assets taken over, clearly bringing out the amount of Goodwill or Capital Reserve arising on absorption. [15]
Q6. Ram Ltd. is absorbed by Shyam Ltd. on 1st April, 2026. Shyam Ltd. agreed to take over the assets of Ram Ltd. at agreed values of Land & Building Rs. 600,000, Plant & Machinery Rs. 350,000, Stock Rs. 180,000, Sundry Debtors Rs. 120,000 and Cash Rs. 40,000, and to discharge Sundry Creditors of Rs. 120,000 and Bank Loan of Rs. 40,000. The purchase consideration of Rs. 1,070,000 was discharged by Shyam Ltd. through issue of 80,000 equity shares of Rs.10 each at Rs.12 per share and the balance in cash. Pass the necessary journal entries for the above amalgamation (i) in the books of Ram Ltd. (Transferor Company) to close its books, and (ii) in the books of Shyam Ltd. (Transferee Company) to record the business taken over. [15]
Q7. Discuss the need and objectives of corporate reconstruction. Explain briefly the scheme of accounting followed for internal reconstruction of a company. [15]
Q8. The following is the Balance Sheet of Bharat Ltd. as at 31st March, 2026: The Company adopted the following scheme of internal reconstruction, duly approved by the Court: (i) Equity Shares of Rs.10 each be reduced to fully paid-up Equity Shares of Rs.4 each; (ii) 9% Preference Shares of Rs.100 each be reduced to fully paid-up Preference Shares of Rs.70 each; (iii) Goodwill and the debit balance of Profit & Loss Account be written off in full; (iv) Land & Building be appreciated to Rs. 410,000; (v) Plant & Machinery be written down to Rs. 230,000 and Stock be written down to Rs. 150,000; and (vi) the balance remaining in the Capital Reduction Account, if any, be transferred to Capital Reserve. Pass the necessary journal entries to give effect to the above scheme and prepare the Balance Sheet of the company immediately after the reconstruction. [15]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Equity Share Capital (90,000 shares of Rs.10 each) | 900,000 | Goodwill | 90,000 |
| 9% Preference Share Capital (1,800 shares of Rs.100 each) | 180,000 | Land & Building | 380,000 |
| Sundry Creditors | 280,000 | Plant & Machinery | 270,000 |
| | Stock | 170,000 |
| | Sundry Debtors | 130,000 |
| | Cash at Bank | 45,000 |
| | Profit & Loss A/c (Dr. balance) | 275,000 |
| Total | 1,360,000 | Total | 1,360,000 |
Q9. The following particulars relate to Bharat Manufacturing Co. Ltd., which went into voluntary liquidation on 31st March, 2026: From the above information, prepare the Statement of Affairs of the company as on 31st March, 2026, and the Deficiency Account, clearly showing the amount of surplus/deficiency as regards members and reconciling it with the Deficiency Account. [15]
| Assets | Book Value (Rs.) | Estimated to Realise (Rs.) |
|---|
| Land & Building (mortgaged to Debenture holders) | 350,000 | 400,000 |
| Plant & Machinery | 280,000 | 210,000 |
| Stock-in-Trade | 180,000 | 145,000 |
| Sundry Debtors | 130,000 | 105,000 |
| Cash at Bank | 25,000 | 25,000 |
| Liabilities | Amount (Rs.) |
|---|
| Equity Share Capital (fully paid up) | 580,000 |
| 10% Debentures (secured by mortgage on Land & Building) | 220,000 |
| Sundry Creditors (unsecured) | 180,000 |
| Preferential Creditors (outstanding wages/taxes) | 25,000 |
| Profit & Loss A/c (Dr. balance) | 40,000 |
Q10. The Vikram Company Ltd. went into voluntary liquidation on 1st April, 2026. The following information is available regarding realisation of assets and settlement of claims: The liquidator is entitled to a remuneration of 2% on the amount realised from assets (excluding opening cash balance). Prepare the Liquidator's Final Statement of Account. [15]
| Particulars | Amount (Rs.) |
|---|
| Cash and Bank balance in hand on the date of liquidation | 18,000 |
| Amount realised from Land & Building | 350,000 |
| Amount realised from Plant & Machinery | 185,000 |
| Amount realised from Stock-in-Trade | 125,000 |
| Amount realised from Sundry Debtors | 108,000 |
| Liquidation expenses paid | 18,000 |
| 9% Debentures (secured, to be paid in full) | 210,000 |
| Preferential Creditors | 22,000 |
| Unsecured Creditors | 230,000 |
| 9% Preference Share Capital (1,200 shares of Rs.100 each, fully paid) | 120,000 |
| Equity Share Capital (2,844 shares of Rs.100 each, fully paid) | 284,400 |
Set E
Q1. Distinguish between shares and debentures. Discuss the various methods that a company may adopt for the redemption of debentures. [15]
Q2. XYZ Ltd. issued 15,000 equity shares of Rs.10 each at a premium of Rs.2 per share, payable as follows: on application Rs.2, on allotment Rs.5 (including premium), and on first and final call Rs.5 per share. All the money due was received except from Suresh, who was allotted 400 shares, and who failed to pay the allotment and call money. His shares were accordingly forfeited. Later, all the forfeited shares were re-issued to Deepak as fully paid-up at Rs.8 per share. Pass the necessary journal entries for forfeiture and re-issue of shares in the books of the company. [15]
Q3. The Balance Sheet of a company shows 80,000 equity shares of Rs.10 each, fully paid up, a Securities Premium Account of Rs. 40,000 and a General Reserve of Rs. 250,000. The company decided to issue fully paid bonus shares to its existing equity shareholders in the ratio of 1 new share for every 4 shares held, utilising the Securities Premium Account fully and the balance out of the General Reserve. Pass the necessary journal entries in the books of the company for the issue of bonus shares, and state the amount of share capital after the bonus issue. [15]
Q4. Explain the accounting treatment to be followed in the books of the Transferee Company for recording the assets, liabilities, goodwill and reserves of the Transferor Company at the time of amalgamation. [15]
Q5. Vishnu Ltd. agreed to absorb the business of Shiva Ltd. as on 31st March, 2026, taking over its assets and liabilities on the following terms: Land & Building at Rs. 1,000,000, Plant & Machinery at Rs. 700,000, Stock at Rs. 350,000, Sundry Debtors at Rs. 250,000 and Cash at Rs. 70,000; Sundry Creditors at Rs. 250,000 and Bank Loan at Rs. 120,000 were also taken over. The purchase consideration was to be discharged by Vishnu Ltd. by issuing 150,000 equity shares of Rs.10 each at Rs.14 per share to the shareholders of Shiva Ltd., along with Rs. 250,000 in cash. Compute the amount of Purchase Consideration under the Net Payment Method, and also calculate the amount of Net Assets taken over, clearly bringing out the amount of Goodwill or Capital Reserve arising on absorption. [15]
Q6. Ram Ltd. is absorbed by Shyam Ltd. on 1st April, 2026. Shyam Ltd. agreed to take over the assets of Ram Ltd. at agreed values of Land & Building Rs. 1,000,000, Plant & Machinery Rs. 700,000, Stock Rs. 350,000, Sundry Debtors Rs. 250,000 and Cash Rs. 70,000, and to discharge Sundry Creditors of Rs. 250,000 and Bank Loan of Rs. 120,000. The purchase consideration of Rs. 2,350,000 was discharged by Shyam Ltd. through issue of 150,000 equity shares of Rs.10 each at Rs.14 per share and the balance in cash. Pass the necessary journal entries for the above amalgamation (i) in the books of Ram Ltd. (Transferor Company) to close its books, and (ii) in the books of Shyam Ltd. (Transferee Company) to record the business taken over. [15]
Q7. Distinguish between Internal Reconstruction and External Reconstruction. Explain the circumstances under which a company generally resorts to internal reconstruction. [15]
Q8. The following is the Balance Sheet of Bharat Ltd. as at 31st March, 2026: The Company adopted the following scheme of internal reconstruction, duly approved by the Court: (i) Equity Shares of Rs.10 each be reduced to fully paid-up Equity Shares of Rs.6 each; (ii) 8% Preference Shares of Rs.100 each be reduced to fully paid-up Preference Shares of Rs.80 each; (iii) Goodwill and the debit balance of Profit & Loss Account be written off in full; (iv) Land & Building be appreciated to Rs. 670,000; (v) Plant & Machinery be written down to Rs. 360,000 and Stock be written down to Rs. 260,000; and (vi) the balance remaining in the Capital Reduction Account, if any, be transferred to Capital Reserve. Pass the necessary journal entries to give effect to the above scheme and prepare the Balance Sheet of the company immediately after the reconstruction. [15]
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|---|
| Equity Share Capital (150,000 shares of Rs.10 each) | 1,500,000 | Goodwill | 150,000 |
| 8% Preference Share Capital (3,000 shares of Rs.100 each) | 300,000 | Land & Building | 600,000 |
| Sundry Creditors | 400,000 | Plant & Machinery | 420,000 |
| | Stock | 300,000 |
| | Sundry Debtors | 220,000 |
| | Cash at Bank | 70,000 |
| | Profit & Loss A/c (Dr. balance) | 440,000 |
| Total | 2,200,000 | Total | 2,200,000 |
Q9. The following particulars relate to Bharat Manufacturing Co. Ltd., which went into voluntary liquidation on 31st March, 2026: From the above information, prepare the Statement of Affairs of the company as on 31st March, 2026, and the Deficiency Account, clearly showing the amount of surplus/deficiency as regards members and reconciling it with the Deficiency Account. [15]
| Assets | Book Value (Rs.) | Estimated to Realise (Rs.) |
|---|
| Land & Building (mortgaged to Debenture holders) | 450,000 | 520,000 |
| Plant & Machinery | 350,000 | 270,000 |
| Stock-in-Trade | 230,000 | 185,000 |
| Sundry Debtors | 170,000 | 135,000 |
| Cash at Bank | 35,000 | 35,000 |
| Liabilities | Amount (Rs.) |
|---|
| Equity Share Capital (fully paid up) | 750,000 |
| 11% Debentures (secured by mortgage on Land & Building) | 280,000 |
| Sundry Creditors (unsecured) | 230,000 |
| Preferential Creditors (outstanding wages/taxes) | 35,000 |
| Profit & Loss A/c (Dr. balance) | 60,000 |
Q10. The Vikram Company Ltd. went into voluntary liquidation on 1st April, 2026. The following information is available regarding realisation of assets and settlement of claims: The liquidator is entitled to a remuneration of 3% on the amount realised from assets (excluding opening cash balance). Prepare the Liquidator's Final Statement of Account. [15]
| Particulars | Amount (Rs.) |
|---|
| Cash and Bank balance in hand on the date of liquidation | 30,000 |
| Amount realised from Land & Building | 600,000 |
| Amount realised from Plant & Machinery | 320,000 |
| Amount realised from Stock-in-Trade | 230,000 |
| Amount realised from Sundry Debtors | 195,000 |
| Liquidation expenses paid | 30,000 |
| 10% Debentures (secured, to be paid in full) | 380,000 |
| Preferential Creditors | 40,000 |
| Unsecured Creditors | 450,000 |
| 8% Preference Share Capital (3,000 shares of Rs.100 each, fully paid) | 300,000 |
| Equity Share Capital (2,693 shares of Rs.100 each, fully paid) | 269,300 |
Statistical Methods (Major A - Paper P-6)
Statistical Methods (Major A, Paper P-6, 4 Credits) covers Introduction to Statistics (nature, scope, laws of statistics, sampling and data collection); Classification, Tabulation and Measures of Central Tendency (Mean, Median, Mode, Quartiles); Measures of Dispersion, Skewness, Kurtosis and Correlation; and Regression and Interpolation. Time: 3 Hours, Maximum Marks: 75. Answer any five of the ten questions given below; all questions carry equal marks (15 each). The five sets below (Set A to Set E) give you full practice coverage across every unit of the syllabus, including all data tables exactly as given in the original question.
Set A
Q1. Define statistics. Explain, in detail, the nature and scope of statistics as a subject, and bring out clearly the distinction between statistics as numerical data and statistics as a scientific method. [15]
Q2. State and explain the Law of Statistical Regularity and the Law of Inertia of Large Numbers with the help of suitable examples. Discuss briefly the significance of these two laws in the theory of sampling. [15]
Q3. Calculate the Arithmetic Mean of the daily wages (in Rs.) of 70 workers of a factory from the following frequency distribution, using the direct method: [15]
| Daily Wages (Rs.) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Workers | 5 | 8 | 15 | 20 | 12 | 10 |
Q4. From the following distribution of marks obtained by 100 students in a test, calculate the Median, the first Quartile (Q1) and the third Quartile (Q3): [15]
| Marks | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Students | 5 | 15 | 25 | 30 | 15 | 10 |
Q5. Calculate the Mode of the following frequency distribution showing the daily sales (in units) recorded by 65 retail outlets: [15]
| Daily Sales (units) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Outlets | 5 | 8 | 12 | 20 | 14 | 6 |
Q6. The following data relate to the marks (out of 100) obtained by 10 students each of Section X and Section Y of a class: Calculate the Standard Deviation and the Coefficient of Variation of both the series, and state which of the two shows greater consistency (less variability). [15]
| Section X | 45 | 50 | 55 | 60 | 65 | 70 | 75 | 80 | 85 | 90 |
|---|
| Section Y | 40 | 45 | 50 | 55 | 60 | 65 | 70 | 75 | 80 | 85 |
Q7. From the following frequency distribution of marks obtained by 60 students, compute the Mean, the Mode and the Standard Deviation, and hence calculate Karl Pearson's Coefficient of Skewness. Comment on the direction of skewness: [15]
| Marks | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Students | 4 | 8 | 15 | 20 | 10 | 3 |
Q8. Calculate Karl Pearson's Coefficient of Correlation between advertisement expenditure (X, in Rs. thousand) and sales (Y, in Rs. lakh) of a firm from the following data, and interpret the result: [15]
| X | 10 | 12 | 14 | 16 | 18 | 20 | 22 | 24 |
|---|
| Y | 15 | 18 | 20 | 24 | 25 | 28 | 30 | 35 |
Q9. The following data relate to advertisement expenditure (X, Rs. '000) and sales (Y, Rs. lakh) for a sample of observations. Obtain the two regression equations (of Y on X, and of X on Y), and estimate the value of Y when X = 70: [15]
| X | 10 | 20 | 30 | 40 | 50 | 60 |
|---|
| Y | 15 | 25 | 30 | 45 | 50 | 65 |
Q10. The population (in lakh) of a town, as recorded in the census, is given below. Using Newton's Forward Difference method of interpolation, estimate the population of the town in the year 1996: [15]
| Year | 1990 | 2000 | 2010 | 2020 |
|---|
| Population (lakh) | 12 | 15 | 20 | 27 |
Set B
Q1. Distinguish between the Census method and the Sampling method of collecting statistical data. Discuss the important methods of sampling used in statistical investigations, bringing out their respective merits and limitations. [15]
Q2. Explain the meaning of a statistical unit. Discuss the types and characteristics of a statistical unit that a good investigator must keep in mind while planning an enquiry, with suitable illustrations. [15]
Q3. A student appeared in five papers of different credit weights and secured the marks shown below. Calculate the Weighted Arithmetic Mean of the marks obtained by the student, using the credit weight of each paper as the weight: [15]
| Paper | I | II | III | IV | V |
|---|
| Marks obtained (out of 100) | 80 | 72 | 65 | 90 | 58 |
| Credit Weight | 4 | 3 | 3 | 2 | 2 |
Q4. The monthly income (in Rs. hundred) of 60 employees of a firm is given below. Calculate the Median, the lower Quartile (Q1) and the upper Quartile (Q3) of the distribution: [15]
| Monthly Income (Rs. '00) | 0-20 | 20-40 | 40-60 | 60-80 | 80-100 |
|---|
| No. of Employees | 8 | 15 | 20 | 12 | 5 |
Q5. The percentage growth rates of profit of a company over five successive years are given below. Calculate the Geometric Mean and the Harmonic Mean of the growth rates, and briefly state why the Geometric Mean is regarded as the most appropriate average of ratios and rates of change: [15]
| Year | 1 | 2 | 3 | 4 | 5 |
|---|
| Growth rate of profit (per cent) | 4 | 8 | 16 | 32 | 2 |
Q6. The following data relate to the daily sales (Rs. thousand) of two salesmen, P and Q, recorded over 8 days: Calculate the Standard Deviation and the Coefficient of Variation of both the series, and state which of the two shows greater consistency (less variability). [15]
| Salesman P | 10 | 12 | 14 | 16 | 18 | 20 | 22 | 24 |
|---|
| Salesman Q | 8 | 10 | 14 | 18 | 20 | 22 | 24 | 26 |
Q7. From the following frequency distribution, calculate the second and fourth central moments (about the mean) and hence obtain the coefficient of Kurtosis (beta-two). Comment on the nature of the frequency curve (whether it is Mesokurtic, Leptokurtic or Platykurtic): [15]
| Class Interval | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
|---|
| Frequency | 2 | 8 | 22 | 35 | 20 | 10 | 3 |
Q8. Two judges in a debate competition awarded the following marks (out of 100) to eight participants. Calculate Spearman's Rank Correlation Coefficient between the ratings of the two judges, applying the correction for tied ranks wherever necessary: [15]
| Judge I | 85 | 72 | 90 | 72 | 65 | 58 | 90 | 78 |
|---|
| Judge II | 80 | 75 | 88 | 70 | 60 | 55 | 92 | 74 |
Q9. The following data relate to units produced (X, '00) and cost of production (Y, Rs. '000) for a sample of observations. Obtain the two regression equations (of Y on X, and of X on Y), and estimate the value of Y when X = 35: [15]
| X | 5 | 10 | 15 | 20 | 25 | 30 |
|---|
| Y | 8 | 12 | 20 | 22 | 28 | 35 |
Q10. In the following table, one value of y is missing. Assuming that the fourth difference of the values of y is zero, find the missing value of y by the method based on the binomial expansion of (E - 1)^n = 0 (i.e., the finite-difference / binomial expansion method of interpolation): [15]
Set C
Q1. Discuss the various methods and instruments used for the collection of primary data. In what circumstances would you recommend the use of the schedule method as against the questionnaire method of data collection? [15]
Q2. Define statistics and discuss its scope as a subject of study. Explain the important limitations of statistics that a student of the subject should always keep in mind. [15]
Q3. The following table shows the marks obtained by 80 students of a college in an examination. Calculate the Arithmetic Mean of the marks by the step-deviation method: [15]
| Marks | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
|---|
| No. of Students | 6 | 10 | 18 | 22 | 14 | 10 |
Q4. The following table shows the age distribution (in years) of 60 patients admitted to a hospital during a month. Calculate the Median age and the two Quartiles Q1 and Q3: [15]
| Age (years) | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
|---|
| No. of Patients | 4 | 8 | 14 | 20 | 10 | 4 |
Q5. Calculate the Mode of the following distribution relating to the marks obtained by 55 students of a class: [15]
| Marks | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
|---|
| No. of Students | 3 | 7 | 10 | 18 | 12 | 5 |
Q6. The following data relate to the price (in Rs. per kg) of a commodity recorded in two markets, Market I and Market II, over 7 weeks: Calculate the Standard Deviation and the Coefficient of Variation of both the series, and state which of the two shows greater consistency (less variability). [15]
| Market I | 20 | 25 | 30 | 35 | 40 | 45 | 50 |
|---|
| Market II | 15 | 20 | 28 | 35 | 40 | 48 | 55 |
Q7. From the following distribution, calculate the Median, the first Quartile (Q1) and the third Quartile (Q3), and hence compute Bowley's Coefficient of Skewness: [15]
| Class Interval | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| Frequency | 3 | 9 | 20 | 25 | 15 | 8 |
Q8. Calculate Karl Pearson's Coefficient of Correlation between the years of experience (X) and monthly output (Y, in units) of nine workers of a factory from the data given below, and comment on the degree and direction of the relationship: [15]
| X | 5 | 8 | 10 | 12 | 15 | 18 | 20 | 22 | 25 |
|---|
| Y | 20 | 22 | 25 | 24 | 28 | 30 | 27 | 33 | 35 |
Q9. The following data relate to rainfall (X, in cm) and crop yield (Y, in quintals) for a sample of observations. Obtain the two regression equations (of Y on X, and of X on Y), and estimate the value of Y when X = 14: [15]
Q10. Using Lagrange's method of interpolation, find the value of y corresponding to x = 9 from the following data (note that the values of x are at unequal intervals): [15]
| x | 5 | 7 | 11 | 13 | 17 |
|---|
| y | 150 | 392 | 1452 | 2366 | 5202 |
Set D
Q1. State the Law of Statistical Regularity. Explain, with the help of a suitable example, how this law forms the theoretical basis of the modern theory of sampling used in statistical investigations. [15]
Q2. What do you understand by sampling? Explain the various methods of probability sampling and non-probability sampling used in statistical investigations, bringing out their relative merits. [15]
Q3. A shopkeeper made five purchases of a commodity at different prices and in different quantities during a month, as shown below. Calculate the Weighted Arithmetic Mean price paid per unit, taking the quantity purchased as weight: [15]
| Purchase No. | 1 | 2 | 3 | 4 | 5 |
|---|
| Price per unit (Rs.) | 20 | 25 | 30 | 15 | 40 |
| Quantity purchased (units) | 10 | 8 | 6 | 12 | 4 |
Q4. From the following distribution showing the weight (in kg) of 80 packets of a product, calculate the Median weight, the first Quartile and the third Quartile: [15]
| Weight (kg) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Packets | 6 | 10 | 14 | 22 | 18 | 10 |
Q5. A motorist covers three equal stretches of a journey at speeds of 3, 9 and 27 km per hour respectively. Calculate the Geometric Mean and the Harmonic Mean of the speeds, and state, with reason, which of the two averages correctly gives the average speed of the motorist for the entire journey: [15]
| Stretch | First | Second | Third |
|---|
| Speed maintained (km/hr) | 3 | 9 | 27 |
Q6. The following data relate to the daily wages (in Rs.) paid to a sample of workers in Factory A and Factory B: Calculate the Standard Deviation and the Coefficient of Variation of both the series, and state which of the two shows greater consistency (less variability). [15]
| Factory A | 100 | 110 | 120 | 130 | 140 | 150 |
|---|
| Factory B | 90 | 105 | 115 | 135 | 145 | 160 |
Q7. What is meant by correlation between two variables? Explain the Scatter Diagram method of studying correlation. State the important properties of Karl Pearson's Coefficient of Correlation. [15]
Q8. The following table gives the scores obtained by eight candidates in two successive rounds of an aptitude test. Calculate Spearman's Rank Correlation Coefficient between the scores of the two rounds, using the correction for tied ranks wherever necessary: [15]
| Round I | 45 | 60 | 60 | 72 | 80 | 80 | 80 | 90 |
|---|
| Round II | 50 | 55 | 65 | 72 | 75 | 88 | 78 | 95 |
Q9. The following data relate to marks in Statistics (X) and marks in Mathematics (Y) for a sample of observations. Obtain the two regression equations (of Y on X, and of X on Y), and estimate the value of Y when X = 110: [15]
| X | 50 | 60 | 70 | 80 | 90 | 100 |
|---|
| Y | 40 | 45 | 55 | 58 | 66 | 75 |
Q10. The number of a firm's employees (in hundreds) in various years is given below. Using Newton's Backward Difference method of interpolation, estimate the number of employees in the year 2015: [15]
| Year | 1980 | 1990 | 2000 | 2010 | 2020 |
|---|
| No. of employees (in '00) | 10 | 14 | 20 | 30 | 45 |
Set E
Q1. Explain the Law of Inertia of Large Numbers and discuss how it is related to the Law of Statistical Regularity. Illustrate your answer with suitable examples drawn from everyday statistical work. [15]
Q2. Discuss the important methods and instruments of collecting statistical data, distinguishing clearly between the questionnaire method and the interview (schedule) method of data collection. [15]
Q3. The following table gives the distribution of weekly household expenditure (in Rs. hundred) of 75 families in a locality. Calculate the Arithmetic Mean expenditure by the short-cut method: [15]
| Expenditure (Rs. '00) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Families | 5 | 10 | 18 | 22 | 12 | 8 |
Q4. The following table gives the distribution of monthly sales (in Rs. lakh) of 75 retail shops of a city. Calculate the Median sales and the Quartiles Q1 and Q3 of the distribution: [15]
| Sales (Rs. lakh) | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 | 70-80 |
|---|
| No. of Shops | 5 | 9 | 15 | 25 | 14 | 7 |
Q5. Calculate the Mode of the following frequency distribution showing the life (in hours) of 62 electric bulbs tested in a laboratory: [15]
| Life (hours) | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 |
|---|
| No. of Bulbs | 2 | 6 | 10 | 21 | 15 | 8 |
Q6. The following data relate to the marks (out of 50) scored by 8 students each of Group I and Group II in a class test: Calculate the Standard Deviation and the Coefficient of Variation of both the series, and state which of the two shows greater consistency (less variability). [15]
| Group I | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 |
|---|
| Group II | 8 | 12 | 18 | 22 | 28 | 30 | 36 | 42 |
Q7. From the following frequency distribution, calculate the second and fourth central moments (about the mean) and hence obtain the coefficient of Kurtosis (beta-two). Comment on the peakedness of the distribution as compared to the normal curve: [15]
| Class Interval | 0-10 | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
|---|
| Frequency | 6 | 14 | 20 | 24 | 14 | 8 | 4 |
Q8. Calculate Karl Pearson's Coefficient of Correlation between the price (X, in Rs.) and the quantity demanded (Y, in units) of a commodity from the following data, and comment on the nature of the relationship between the two variables: [15]
| X | 2 | 4 | 6 | 8 | 10 | 12 | 14 | 16 |
|---|
| Y | 18 | 16 | 14 | 11 | 10 | 8 | 6 | 4 |
Q9. The following data relate to years of experience (X) and monthly incentive (Y, Rs. '00) for a sample of observations. Obtain the two regression equations (of Y on X, and of X on Y), and estimate the value of Y when X = 8: [15]
Q10. Using Lagrange's method of interpolation, find the value of y at x = 2 from the following data (the values of x being at unequal intervals). Also state the basic assumption underlying the method of interpolation: [15]
Income Tax Law and Accounts (Major B - Paper P-5)
Income Tax Law and Accounts (Major B, Paper P-5, 4 Credits) covers Basic Concepts of Income Tax (income, residential status, scope of total income, tax evasion/avoidance/planning); Heads of Income (Salaries, House Property, Business or Profession, Capital Gains, Other Sources); Deemed Income, Aggregation, Set-off and Carry Forward of Losses, and Tax Authorities and Assessment Procedures; and Computation of Total Income of an Individual and HUF. Time: 3 Hours, Maximum Marks: 75. Answer any five of the ten questions given below; all questions carry equal marks (15 each). The five sets below (Set A to Set E) give you full practice coverage across every unit of the syllabus.
Set A
Q1. Define the following terms as per the Income Tax Act, 1961, with suitable examples: (i) Income, (ii) Agricultural income, and (iii) Casual income. Explain how agricultural income, though exempt under section 10(1), is nevertheless considered while computing tax liability of an individual (the scheme of partial integration). [15]
Q2. Distinguish between tax evasion, tax avoidance and tax planning. Explain, with suitable examples, why tax planning is regarded as legitimate while tax evasion is an offence under the Income Tax Act, 1961. [15]
Q3. From the following particulars of Rs. 40,000 basic pay per month, compute the income chargeable under the head "Salaries" of an employee for the previous year 2024-25 (Assessment Year 2025-26): Basic Pay Rs. 40,000 per month; Dearness Allowance (forming part of salary for retirement benefits) 40% of basic pay; House Rent Allowance received Rs. 15,000 per month; rent actually paid by the employee for a rented house in Mumbai (a metro city) Rs. 16,000 per month; Special Allowance (fully taxable) Rs. 5,000 per month; employer's contribution to Recognised Provident Fund 14% of (Basic Pay + Dearness Allowance); and professional tax of Rs. 2,500 paid during the year, of which half was paid by the employer on behalf of the employee and included in the above salary. Assume standard deduction under section 16(ia) as admissible under the Act. [15]
Q4. Mr./Ms. X owns two house properties. House I is let out throughout the previous year 2024-25: Municipal Value Rs. 280,000, Fair Rent Rs. 300,000, Standard Rent under the Rent Control Act Rs. 320,000, actual rent received Rs. 30,000 per month, municipal taxes of Rs. 18,000 paid by the owner during the year, and interest on a loan taken for construction of this house Rs. 150,000 for the year. House II is self-occupied throughout the year for residential purposes, on which interest on a housing loan taken for its acquisition amounts to Rs. 180,000 for the year. Compute the income chargeable under the head "Income from House Property" for the Assessment Year 2025-26. [15]
Q5. The Profit and Loss Account of a proprietary business for the year ended 31st March, 2025 shows a net profit of Rs. 500,000. On scrutiny of the accounts, the following further information is available: income tax paid Rs. 25,000 debited to Profit and Loss Account; personal expenses of the proprietor Rs. 15,000 debited to the business account; donation to a charitable trust Rs. 10,000 debited to Profit and Loss Account; depreciation charged as per books of account Rs. 40,000, whereas depreciation allowable under the Income Tax Rules is Rs. 55,000; provision for doubtful debts Rs. 8,000 debited to Profit and Loss Account; interest on fixed deposit with a bank Rs. 20,000 credited to Profit and Loss Account; rent from a let-out property owned by the proprietor Rs. 12,000 credited to Profit and Loss Account; and payment of Rs. 18,000 to a contractor on which tax deductible at source was not deducted, debited as an expense. Compute the income chargeable under the head "Profits and Gains of Business or Profession" for the Assessment Year 2025-26, showing the necessary additions and deletions to the net profit. [15]
Q6. An assessee purchased a residential house in 2005-06 for Rs. 800,000 and sold it during the previous year 2024-25 for Rs. 2,800,000, incurring Rs. 50,000 as expenses on transfer. The Cost Inflation Index for the year of purchase (2005-06) may be taken as 200 and for the year of sale (2024-25) as 348. Out of the sale proceeds, the assessee invested Rs. 500,000 in bonds of the National Highways Authority of India (NHAI) within six months of the date of transfer, eligible for exemption under section 54EC of the Income Tax Act, 1961. Compute the amount of Long-Term Capital Gain chargeable to tax for the Assessment Year 2025-26, showing the indexed cost of acquisition and the exemption available. [15]
Q7. During the previous year 2024-25, an assessee received the following incomes: interest on bank fixed deposits Rs. 45,000; interest on savings bank account Rs. 8,000; dividend received from shares of an Indian company Rs. 30,000; winnings from a television game show Rs. 100,000 (received net of tax deducted at source, to be grossed up is not required for this computation); and a cash gift of Rs. 60,000 received on the occasion of his birthday from a friend who is not a "relative" as defined under the Act. Explaining the taxability of each item, compute the income chargeable under the head "Income from Other Sources" for the Assessment Year 2025-26. [15]
Q8. From the following particulars of an assessee for the previous year 2024-25, compute the Gross Total Income for the Assessment Year 2025-26 after giving effect to the provisions of set-off and carry forward of losses: Income from Salary Rs. 600,000; Loss from a let-out house property Rs. 310,000; Loss from a non-speculative business Rs. 120,000; Short-Term Capital Gain Rs. 90,000; Long-Term Capital Loss Rs. 40,000; Income from Other Sources Rs. 60,000; and a business loss of Rs. 50,000 brought forward from AY 2023-24, the return for that year having been filed within the due date. State clearly the amount, if any, of each loss carried forward to the subsequent assessment year and the head against which it can be set off in future. [15]
Q9. Describe the hierarchy of income tax authorities in India as provided under the Income Tax Act, 1961. Explain briefly the powers and functions of the Central Board of Direct Taxes (CBDT), the Commissioner of Income Tax and the Assessing Officer. [15]
Q10. Mr. Arvind, a resident individual aged 35 years, furnishes the following particulars of his/her income for the previous year 2024-25: Income from Salary Rs. 650,000; Income from House Property Rs. 120,000; Profits and Gains of Business or Profession Rs. 300,000; Long-Term Capital Gain Rs. 80,000; and Income from Other Sources Rs. 50,000 (including interest on savings bank account of Rs. 8,000). During the year he/she paid: LIC premium Rs. 60,000, contribution to PPF Rs. 50,000 and children's tuition fees Rs. 40,000 (eligible under section 80C); mediclaim insurance premium of Rs. 22,000 for self and family (eligible under section 80D); and a donation of Rs. 20,000 to the Prime Minister's National Relief Fund (qualifying for 100% deduction) (eligible under section 80G). Compute the Gross Total Income, Total Income and the tax liability (before rebate under section 87A, if any, but including health and education cess at 4%) for the Assessment Year 2025-26, applying the slab rates applicable to an individual assessee under the old (regular) tax regime. [15]
Set B
Q1. Explain the meaning of the terms "Assessee", "Person", "Assessment Year" and "Previous Year" under the Income Tax Act, 1961. Discuss the exceptions to the general rule that income of a previous year is taxed in the immediately following assessment year. [15]
Q2. Explain the scope of total income under section 5 of the Income Tax Act, 1961, with reference to the tax liability of (i) a resident and ordinarily resident, (ii) a resident but not ordinarily resident, and (iii) a non-resident assessee, bringing out the treatment of income received, accrued and deemed to accrue in India and outside India. [15]
Q3. From the following particulars of Rs. 35,000 basic pay per month, compute the income chargeable under the head "Salaries" of an employee for the previous year 2024-25 (Assessment Year 2025-26): Basic Pay Rs. 35,000 per month; Dearness Allowance (forming part of salary for retirement benefits) 30% of basic pay; House Rent Allowance received Rs. 12,000 per month; rent actually paid by the employee for a rented house in Kanpur (a non-metro city) Rs. 13,000 per month; Special Allowance (fully taxable) Rs. 4,000 per month; employer's contribution to Recognised Provident Fund 13% of (Basic Pay + Dearness Allowance); and professional tax of Rs. 2,400 paid during the year, of which half was paid by the employer on behalf of the employee and included in the above salary. Assume standard deduction under section 16(ia) as admissible under the Act. [15]
Q4. Mr./Ms. X owns two house properties. House I is let out throughout the previous year 2024-25: Municipal Value Rs. 240,000, Fair Rent Rs. 260,000, Standard Rent under the Rent Control Act Rs. 270,000, actual rent received Rs. 25,000 per month, municipal taxes of Rs. 15,000 paid by the owner during the year, and interest on a loan taken for construction of this house Rs. 120,000 for the year. House II is self-occupied throughout the year for residential purposes, on which interest on a housing loan taken for its acquisition amounts to Rs. 160,000 for the year. Compute the income chargeable under the head "Income from House Property" for the Assessment Year 2025-26. [15]
Q5. The Profit and Loss Account of a proprietary business for the year ended 31st March, 2025 shows a net profit of Rs. 420,000. On scrutiny of the accounts, the following further information is available: income tax paid Rs. 20,000 debited to Profit and Loss Account; personal expenses of the proprietor Rs. 12,000 debited to the business account; donation to a charitable trust Rs. 8,000 debited to Profit and Loss Account; depreciation charged as per books of account Rs. 35,000, whereas depreciation allowable under the Income Tax Rules is Rs. 48,000; provision for doubtful debts Rs. 6,000 debited to Profit and Loss Account; interest on fixed deposit with a bank Rs. 15,000 credited to Profit and Loss Account; rent from a let-out property owned by the proprietor Rs. 10,000 credited to Profit and Loss Account; and payment of Rs. 14,000 to a contractor on which tax deductible at source was not deducted, debited as an expense. Compute the income chargeable under the head "Profits and Gains of Business or Profession" for the Assessment Year 2025-26, showing the necessary additions and deletions to the net profit. [15]
Q6. An assessee purchased a residential plot of land in 2006-07 for Rs. 600,000 and sold it during the previous year 2024-25 for Rs. 2,200,000, incurring Rs. 40,000 as expenses on transfer. The Cost Inflation Index for the year of purchase (2006-07) may be taken as 220 and for the year of sale (2024-25) as 348. Out of the sale proceeds, the assessee invested Rs. 400,000 in bonds of the National Highways Authority of India (NHAI) within six months of the date of transfer, eligible for exemption under section 54EC of the Income Tax Act, 1961. Compute the amount of Long-Term Capital Gain chargeable to tax for the Assessment Year 2025-26, showing the indexed cost of acquisition and the exemption available. [15]
Q7. During the previous year 2024-25, an assessee received the following incomes: interest on bank fixed deposits Rs. 38,000; interest on savings bank account Rs. 6,000; dividend received from shares of an Indian company Rs. 25,000; winnings from a television game show Rs. 80,000 (received net of tax deducted at source, to be grossed up is not required for this computation); and a cash gift of Rs. 55,000 received on the occasion of his birthday from a friend who is not a "relative" as defined under the Act. Explaining the taxability of each item, compute the income chargeable under the head "Income from Other Sources" for the Assessment Year 2025-26. [15]
Q8. From the following particulars of an assessee for the previous year 2024-25, compute the Gross Total Income for the Assessment Year 2025-26 after giving effect to the provisions of set-off and carry forward of losses: Income from Salary Rs. 550,000; Loss from a let-out house property Rs. 280,000; Loss from a non-speculative business Rs. 100,000; Short-Term Capital Gain Rs. 80,000; Long-Term Capital Loss Rs. 35,000; Income from Other Sources Rs. 50,000; and a business loss of Rs. 40,000 brought forward from AY 2023-24, the return for that year having been filed within the due date. State clearly the amount, if any, of each loss carried forward to the subsequent assessment year and the head against which it can be set off in future. [15]
Q9. Explain the different types of assessment under the Income Tax Act, 1961, namely self-assessment (section 140A), summary assessment (section 143(1)), scrutiny assessment (section 143(3)) and best judgment assessment (section 144). Bring out the circumstances in which each type of assessment is made. [15]
Q10. Mrs. Bhavana, a resident individual aged 42 years, furnishes the following particulars of his/her income for the previous year 2024-25: Income from Salary Rs. 580,000; Income from House Property Rs. 100,000; Profits and Gains of Business or Profession Rs. 260,000; Long-Term Capital Gain Rs. 70,000; and Income from Other Sources Rs. 40,000 (including interest on savings bank account of Rs. 7,000). During the year he/she paid: LIC premium Rs. 55,000, contribution to PPF Rs. 45,000 and NSC purchased Rs. 40,000 (eligible under section 80C); mediclaim insurance premium of Rs. 20,000 for self and family (eligible under section 80D); and a donation of Rs. 15,000 to the a notified charitable trust (qualifying for 100% deduction) (eligible under section 80G). Compute the Gross Total Income, Total Income and the tax liability (before rebate under section 87A, if any, but including health and education cess at 4%) for the Assessment Year 2025-26, applying the slab rates applicable to an individual assessee under the old (regular) tax regime. [15]
Set C
Q1. Explain any five incomes which are wholly or partly exempt from tax under section 10 of the Income Tax Act, 1961. Also distinguish between "Gross Total Income" and "Total Income", and briefly outline the scheme of deductions available under Chapter VI-A of the Act. [15]
Q2. What is meant by "income which does not form part of total income"? Discuss the objectives and important features of the exemptions granted under sections 10 to 13A of the Income Tax Act, 1961. [15]
Q3. From the following particulars of Rs. 45,000 basic pay per month, compute the income chargeable under the head "Salaries" of an employee for the previous year 2024-25 (Assessment Year 2025-26): Basic Pay Rs. 45,000 per month; Dearness Allowance (forming part of salary for retirement benefits) 50% of basic pay; House Rent Allowance received Rs. 18,000 per month; rent actually paid by the employee for a rented house in Delhi (a metro city) Rs. 20,000 per month; Special Allowance (fully taxable) Rs. 6,000 per month; employer's contribution to Recognised Provident Fund 15% of (Basic Pay + Dearness Allowance); and professional tax of Rs. 2,500 paid during the year, of which half was paid by the employer on behalf of the employee and included in the above salary. Assume standard deduction under section 16(ia) as admissible under the Act. [15]
Q4. Mr./Ms. X owns two house properties. House I is let out throughout the previous year 2024-25: Municipal Value Rs. 320,000, Fair Rent Rs. 340,000, Standard Rent under the Rent Control Act Rs. 360,000, actual rent received Rs. 35,000 per month, municipal taxes of Rs. 20,000 paid by the owner during the year, and interest on a loan taken for construction of this house Rs. 170,000 for the year. House II is self-occupied throughout the year for residential purposes, on which interest on a housing loan taken for its acquisition amounts to Rs. 190,000 for the year. Compute the income chargeable under the head "Income from House Property" for the Assessment Year 2025-26. [15]
Q5. The Profit and Loss Account of a proprietary business for the year ended 31st March, 2025 shows a net profit of Rs. 600,000. On scrutiny of the accounts, the following further information is available: income tax paid Rs. 30,000 debited to Profit and Loss Account; personal expenses of the proprietor Rs. 18,000 debited to the business account; donation to a charitable trust Rs. 12,000 debited to Profit and Loss Account; depreciation charged as per books of account Rs. 50,000, whereas depreciation allowable under the Income Tax Rules is Rs. 65,000; provision for doubtful debts Rs. 10,000 debited to Profit and Loss Account; interest on fixed deposit with a bank Rs. 25,000 credited to Profit and Loss Account; rent from a let-out property owned by the proprietor Rs. 15,000 credited to Profit and Loss Account; and payment of Rs. 22,000 to a contractor on which tax deductible at source was not deducted, debited as an expense. Compute the income chargeable under the head "Profits and Gains of Business or Profession" for the Assessment Year 2025-26, showing the necessary additions and deletions to the net profit. [15]
Q6. An assessee purchased a commercial building in 2009-10 for Rs. 1,000,000 and sold it during the previous year 2024-25 for Rs. 3,500,000, incurring Rs. 60,000 as expenses on transfer. The Cost Inflation Index for the year of purchase (2009-10) may be taken as 240 and for the year of sale (2024-25) as 348. Out of the sale proceeds, the assessee invested Rs. 600,000 in bonds of the National Highways Authority of India (NHAI) within six months of the date of transfer, eligible for exemption under section 54EC of the Income Tax Act, 1961. Compute the amount of Long-Term Capital Gain chargeable to tax for the Assessment Year 2025-26, showing the indexed cost of acquisition and the exemption available. [15]
Q7. During the previous year 2024-25, an assessee received the following incomes: interest on bank fixed deposits Rs. 52,000; interest on savings bank account Rs. 9,000; dividend received from shares of an Indian company Rs. 35,000; winnings from a television game show Rs. 120,000 (received net of tax deducted at source, to be grossed up is not required for this computation); and a cash gift of Rs. 70,000 received on the occasion of his birthday from a friend who is not a "relative" as defined under the Act. Explaining the taxability of each item, compute the income chargeable under the head "Income from Other Sources" for the Assessment Year 2025-26. [15]
Q8. From the following particulars of an assessee for the previous year 2024-25, compute the Gross Total Income for the Assessment Year 2025-26 after giving effect to the provisions of set-off and carry forward of losses: Income from Salary Rs. 700,000; Loss from a let-out house property Rs. 340,000; Loss from a non-speculative business Rs. 140,000; Short-Term Capital Gain Rs. 110,000; Long-Term Capital Loss Rs. 45,000; Income from Other Sources Rs. 70,000; and a business loss of Rs. 60,000 brought forward from AY 2022-23, the return for that year having been filed within the due date. State clearly the amount, if any, of each loss carried forward to the subsequent assessment year and the head against which it can be set off in future. [15]
Q9. Discuss the powers and functions of an Assessing Officer under the Income Tax Act, 1961, in relation to discovery, production of evidence, and the making of assessment of the income of an assessee. [15]
Q10. Mr. Chetan, a resident individual aged 50 years, furnishes the following particulars of his/her income for the previous year 2024-25: Income from Salary Rs. 750,000; Income from House Property Rs. 150,000; Profits and Gains of Business or Profession Rs. 350,000; Long-Term Capital Gain Rs. 100,000; and Income from Other Sources Rs. 60,000 (including interest on savings bank account of Rs. 9,000). During the year he/she paid: LIC premium Rs. 65,000, contribution to PPF Rs. 55,000 and children's tuition fees Rs. 30,000 (eligible under section 80C); mediclaim insurance premium of Rs. 25,000 for self and family (eligible under section 80D); and a donation of Rs. 25,000 to the Prime Minister's National Relief Fund (qualifying for 100% deduction) (eligible under section 80G). Compute the Gross Total Income, Total Income and the tax liability (before rebate under section 87A, if any, but including health and education cess at 4%) for the Assessment Year 2025-26, applying the slab rates applicable to an individual assessee under the old (regular) tax regime. [15]
Set D
Q1. State and explain the rules for determining the residential status of an individual under section 6 of the Income Tax Act, 1961, with reference to the basic conditions and additional conditions prescribed for a resident and ordinarily resident. [15]
Q2. Explain the basis of charge of income tax under section 4 of the Income Tax Act, 1961. Discuss the general rule that income of the previous year is charged to tax in the following assessment year, along with the exceptions where income is assessed in the previous year itself. [15]
Q3. From the following particulars of Rs. 30,000 basic pay per month, compute the income chargeable under the head "Salaries" of an employee for the previous year 2024-25 (Assessment Year 2025-26): Basic Pay Rs. 30,000 per month; Dearness Allowance (forming part of salary for retirement benefits) 20% of basic pay; House Rent Allowance received Rs. 9,000 per month; rent actually paid by the employee for a rented house in Varanasi (a non-metro city) Rs. 10,000 per month; Special Allowance (fully taxable) Rs. 3,000 per month; employer's contribution to Recognised Provident Fund 12% of (Basic Pay + Dearness Allowance); and professional tax of Rs. 2,000 paid during the year, of which half was paid by the employer on behalf of the employee and included in the above salary. Assume standard deduction under section 16(ia) as admissible under the Act. [15]
Q4. Mr./Ms. X owns two house properties. House I is let out throughout the previous year 2024-25: Municipal Value Rs. 200,000, Fair Rent Rs. 220,000, Standard Rent under the Rent Control Act Rs. 230,000, actual rent received Rs. 20,000 per month, municipal taxes of Rs. 12,000 paid by the owner during the year, and interest on a loan taken for construction of this house Rs. 100,000 for the year. House II is self-occupied throughout the year for residential purposes, on which interest on a housing loan taken for its acquisition amounts to Rs. 140,000 for the year. Compute the income chargeable under the head "Income from House Property" for the Assessment Year 2025-26. [15]
Q5. The Profit and Loss Account of a proprietary business for the year ended 31st March, 2025 shows a net profit of Rs. 350,000. On scrutiny of the accounts, the following further information is available: income tax paid Rs. 16,000 debited to Profit and Loss Account; personal expenses of the proprietor Rs. 10,000 debited to the business account; donation to a charitable trust Rs. 6,000 debited to Profit and Loss Account; depreciation charged as per books of account Rs. 28,000, whereas depreciation allowable under the Income Tax Rules is Rs. 38,000; provision for doubtful debts Rs. 5,000 debited to Profit and Loss Account; interest on fixed deposit with a bank Rs. 12,000 credited to Profit and Loss Account; rent from a let-out property owned by the proprietor Rs. 8,000 credited to Profit and Loss Account; and payment of Rs. 10,000 to a contractor on which tax deductible at source was not deducted, debited as an expense. Compute the income chargeable under the head "Profits and Gains of Business or Profession" for the Assessment Year 2025-26, showing the necessary additions and deletions to the net profit. [15]
Q6. An assessee purchased gold jewellery in 2011-12 for Rs. 500,000 and sold it during the previous year 2024-25 for Rs. 1,800,000, incurring Rs. 30,000 as expenses on transfer. The Cost Inflation Index for the year of purchase (2011-12) may be taken as 254 and for the year of sale (2024-25) as 348. Out of the sale proceeds, the assessee invested Rs. 300,000 in bonds of the National Highways Authority of India (NHAI) within six months of the date of transfer, eligible for exemption under section 54EC of the Income Tax Act, 1961. Compute the amount of Long-Term Capital Gain chargeable to tax for the Assessment Year 2025-26, showing the indexed cost of acquisition and the exemption available. [15]
Q7. During the previous year 2024-25, an assessee received the following incomes: interest on bank fixed deposits Rs. 30,000; interest on savings bank account Rs. 5,000; dividend received from shares of an Indian company Rs. 20,000; winnings from a television game show Rs. 60,000 (received net of tax deducted at source, to be grossed up is not required for this computation); and a cash gift of Rs. 45,000 received on the occasion of his birthday from a friend who is not a "relative" as defined under the Act. Explaining the taxability of each item, compute the income chargeable under the head "Income from Other Sources" for the Assessment Year 2025-26. [15]
Q8. From the following particulars of an assessee for the previous year 2024-25, compute the Gross Total Income for the Assessment Year 2025-26 after giving effect to the provisions of set-off and carry forward of losses: Income from Salary Rs. 500,000; Loss from a let-out house property Rs. 250,000; Loss from a non-speculative business Rs. 90,000; Short-Term Capital Gain Rs. 70,000; Long-Term Capital Loss Rs. 30,000; Income from Other Sources Rs. 40,000; and a business loss of Rs. 35,000 brought forward from AY 2023-24, the return for that year having been filed within the due date. State clearly the amount, if any, of each loss carried forward to the subsequent assessment year and the head against which it can be set off in future. [15]
Q9. Explain the procedure for filing a return of income under the Income Tax Act, 1961. Discuss the due dates prescribed for different categories of assessees and the consequences of filing a belated or defective return. [15]
Q10. Mr. Deepak, a resident individual aged 29 years, furnishes the following particulars of his/her income for the previous year 2024-25: Income from Salary Rs. 500,000; Income from House Property Rs. 90,000; Profits and Gains of Business or Profession Rs. 220,000; Long-Term Capital Gain Rs. 60,000; and Income from Other Sources Rs. 35,000 (including interest on savings bank account of Rs. 6,000). During the year he/she paid: LIC premium Rs. 45,000 and contribution to PPF Rs. 75,000 (eligible under section 80C); mediclaim insurance premium of Rs. 18,000 for self and family (eligible under section 80D); and a donation of Rs. 10,000 to the a notified charitable trust (qualifying for 100% deduction) (eligible under section 80G). Compute the Gross Total Income, Total Income and the tax liability (before rebate under section 87A, if any, but including health and education cess at 4%) for the Assessment Year 2025-26, applying the slab rates applicable to an individual assessee under the old (regular) tax regime. [15]
Set E
Q1. Define "Person" under section 2(31) of the Income Tax Act, 1961, and explain, with examples, the seven categories of persons recognised under the Act. [15]
Q2. Distinguish between tax planning and tax management. Discuss the legitimate methods available to an assessee for reducing tax liability within the framework of law, and explain why such methods cannot be treated as tax evasion. [15]
Q3. From the following particulars of Rs. 50,000 basic pay per month, compute the income chargeable under the head "Salaries" of an employee for the previous year 2024-25 (Assessment Year 2025-26): Basic Pay Rs. 50,000 per month; Dearness Allowance (forming part of salary for retirement benefits) 40% of basic pay; House Rent Allowance received Rs. 20,000 per month; rent actually paid by the employee for a rented house in Kolkata (a metro city) Rs. 22,000 per month; Special Allowance (fully taxable) Rs. 7,000 per month; employer's contribution to Recognised Provident Fund 16% of (Basic Pay + Dearness Allowance); and professional tax of Rs. 2,500 paid during the year, of which half was paid by the employer on behalf of the employee and included in the above salary. Assume standard deduction under section 16(ia) as admissible under the Act. [15]
Q4. Mr./Ms. X owns two house properties. House I is let out throughout the previous year 2024-25: Municipal Value Rs. 300,000, Fair Rent Rs. 330,000, Standard Rent under the Rent Control Act Rs. 350,000, actual rent received Rs. 32,000 per month, municipal taxes of Rs. 19,000 paid by the owner during the year, and interest on a loan taken for construction of this house Rs. 160,000 for the year. House II is self-occupied throughout the year for residential purposes, on which interest on a housing loan taken for its acquisition amounts to Rs. 175,000 for the year. Compute the income chargeable under the head "Income from House Property" for the Assessment Year 2025-26. [15]
Q5. The Profit and Loss Account of a proprietary business for the year ended 31st March, 2025 shows a net profit of Rs. 550,000. On scrutiny of the accounts, the following further information is available: income tax paid Rs. 28,000 debited to Profit and Loss Account; personal expenses of the proprietor Rs. 16,000 debited to the business account; donation to a charitable trust Rs. 11,000 debited to Profit and Loss Account; depreciation charged as per books of account Rs. 45,000, whereas depreciation allowable under the Income Tax Rules is Rs. 60,000; provision for doubtful debts Rs. 9,000 debited to Profit and Loss Account; interest on fixed deposit with a bank Rs. 22,000 credited to Profit and Loss Account; rent from a let-out property owned by the proprietor Rs. 14,000 credited to Profit and Loss Account; and payment of Rs. 20,000 to a contractor on which tax deductible at source was not deducted, debited as an expense. Compute the income chargeable under the head "Profits and Gains of Business or Profession" for the Assessment Year 2025-26, showing the necessary additions and deletions to the net profit. [15]
Q6. An assessee purchased a residential house in 2014-15 for Rs. 900,000 and sold it during the previous year 2024-25 for Rs. 3,000,000, incurring Rs. 55,000 as expenses on transfer. The Cost Inflation Index for the year of purchase (2014-15) may be taken as 280 and for the year of sale (2024-25) as 348. Out of the sale proceeds, the assessee invested Rs. 450,000 in bonds of the National Highways Authority of India (NHAI) within six months of the date of transfer, eligible for exemption under section 54EC of the Income Tax Act, 1961. Compute the amount of Long-Term Capital Gain chargeable to tax for the Assessment Year 2025-26, showing the indexed cost of acquisition and the exemption available. [15]
Q7. During the previous year 2024-25, an assessee received the following incomes: interest on bank fixed deposits Rs. 48,000; interest on savings bank account Rs. 7,000; dividend received from shares of an Indian company Rs. 32,000; winnings from a television game show Rs. 110,000 (received net of tax deducted at source, to be grossed up is not required for this computation); and a cash gift of Rs. 65,000 received on the occasion of his birthday from a friend who is not a "relative" as defined under the Act. Explaining the taxability of each item, compute the income chargeable under the head "Income from Other Sources" for the Assessment Year 2025-26. [15]
Q8. From the following particulars of an assessee for the previous year 2024-25, compute the Gross Total Income for the Assessment Year 2025-26 after giving effect to the provisions of set-off and carry forward of losses: Income from Salary Rs. 650,000; Loss from a let-out house property Rs. 300,000; Loss from a non-speculative business Rs. 130,000; Short-Term Capital Gain Rs. 100,000; Long-Term Capital Loss Rs. 42,000; Income from Other Sources Rs. 65,000; and a business loss of Rs. 55,000 brought forward from AY 2022-23, the return for that year having been filed within the due date. State clearly the amount, if any, of each loss carried forward to the subsequent assessment year and the head against which it can be set off in future. [15]
Q9. Explain the concept of "deemed income" under the Income Tax Act, 1961, with reference to unexplained cash credits (section 68), unexplained investments (section 69) and unexplained expenditure (section 69C). Also explain briefly the provisions relating to aggregation and clubbing of income of other persons in the total income of an assessee. [15]
Q10. A Hindu Undivided Family (HUF) furnishes the following particulars of its income for the previous year 2024-25: Income from House Property Rs. 200,000; Profits and Gains of Business or Profession Rs. 500,000; Long-Term Capital Gain Rs. 120,000; and Income from Other Sources Rs. 80,000 (including interest on savings bank account of Rs. 10,000). During the year the HUF paid: LIC premium on the life of members Rs. 90,000 and contribution to PPF in the name of a coparcener Rs. 60,000 (eligible under section 80C); mediclaim insurance premium of Rs. 25,000 on the health of its members (eligible under section 80D); and a donation of Rs. 30,000 to the Prime Minister's National Relief Fund (qualifying for 100% deduction) (eligible under section 80G). Compute the Gross Total Income, Total Income and the tax liability (including health and education cess at 4%) of the HUF for the Assessment Year 2025-26, applying the slab rates applicable to a resident HUF under the old (regular) tax regime. [15]
Managing Human Resources (Major B - Paper P-6)
Managing Human Resources (Major B, Paper P-6, 4 Credits) covers Nature and Concept of HRM and Human Resource Planning; Job Analysis, Job Design, Recruitment, Selection, Placement, Socialization, Induction, Promotions, Demotions, Transfers and Separations; Training & Development, Management Development and Performance Appraisal; and Compensation Planning, Motivation Theories, Pay Structures, Wage and Salary Administration, and Industrial Relations & Workers' Participation in Management. Time: 3 Hours, Maximum Marks: 75. Answer any five of the ten questions given below; all questions carry equal marks (15 each). The five sets below (Set A to Set E) give you full practice coverage across every unit of the syllabus, including case-based application questions.
Set A
Q1. Explain the meaning, nature and scope of Human Resource Management. Discuss its growing importance for organisations and critically examine the major challenges that HR managers face in the present-day business environment. [15]
Q2. Define Human Resource Planning. Describe, step by step, the process through which an organisation forecasts and meets its future manpower requirements, and point out the principal limitations that constrain HR planning in practice. [15]
Q3. What is job analysis? Explain the process of conducting a job analysis and show how the information generated from it is used to prepare a job description and a job specification. [15]
Q4. Discuss the various factors that influence recruitment in an organisation. Explain the process of recruitment along with the internal and external sources through which candidates may be sourced. [15]
Q5. A mid-sized manufacturing company has been receiving a large number of applications for a technical supervisor's post but is unable to select a suitable candidate even after three rounds of interviews, and existing employees complain that unsuccessful internal candidates were never properly informed of the outcome. As an HR consultant, analyse what may be going wrong with the company's selection process and recommend, stage by stage, an effective selection procedure it should follow, along with sound socialisation and induction practices for the candidate who is finally selected. [15]
Q6. What do you understand by training? Explain the objectives of training and describe the systematic process and important methods used for imparting training to employees. [15]
Q7. Explain the concept and importance of performance appraisal. Discuss the major methods used for appraising employee performance and the possible errors that can creep into the appraisal process. [15]
Q8. Discuss the objectives of compensation planning. Explain the major theories of motivation and show how they influence the design of remuneration systems in an organisation. [15]
Q9. Explain the principles of wage and salary administration. Discuss the process of developing sound pay structures and the current trends being witnessed in salary administration. [15]
Q10. Discuss the major theories of industrial relations. Explain the concept and process of collective bargaining and the different forms of workers' participation in management practised in Indian industry. [15]
Set B
Q1. What is Human Resource Management? Discuss why HRM has become critical to organisational success today and examine, with suitable examples, the challenges that confront HR managers in a dynamic and competitive environment. [15]
Q2. Explain the process of Human Resource Planning in detail. What problems and limitations commonly arise while implementing HR plans in real organisational settings? [15]
Q3. Explain the concept of job design. Discuss the relationship between job analysis, job description and job specification, and describe the major approaches used to design jobs effectively. [15]
Q4. Describe the various stages involved in the process of employee selection. Explain how a well-designed selection process helps an organisation choose the right person for the right job. [15]
Q5. A large retail chain introduced a new management-development programme for its store managers, but six months later senior management finds no measurable improvement in store performance and several trained managers have left for competitors. Examine the possible reasons for the programme's failure and design, with justification, a training and management-development framework that would address these problems and improve retention. [15]
Q6. Explain the concept of management development. Distinguish it from employee training and discuss the methods commonly used to develop managerial talent within an organisation. [15]
Q7. What steps should an organisation take to plan for performance improvement after an appraisal exercise? Discuss this in the context of the common errors that distort performance appraisal ratings. [15]
Q8. Discuss the objectives of compensation planning and explain, with reference to relevant motivation theories, how an organisation should design its remuneration structure to attract, retain and motivate employees. [15]
Q9. Explain the meaning and importance of workers' participation in management. Discuss the various forms it takes and the problems generally encountered in implementing it effectively. [15]
Q10. Discuss the circumstances and procedures relating to promotions, demotions, transfers and separations of employees, and explain the importance of fair and transparent policies in each of these areas. [15]
Set C
Q1. Discuss the importance of Human Resource Management in the modern business environment. What are the key present-day challenges that HR departments must address to remain effective? [15]
Q2. Explain, step by step, the process of Human Resource Planning followed by organisations. Critically evaluate the major limitations of HR planning as a management tool. [15]
Q3. Explain the process of job analysis and discuss how job description and job specification, prepared on the basis of this analysis, help in effective recruitment and selection. [15]
Q4. Discuss the process of recruitment followed by organisations, along with the sources of recruitment they may use. What factors should be kept in mind while designing a recruitment strategy? [15]
Q5. Explain the process of selection, describing each stage from the receipt of application to final placement. Discuss the role of socialisation and induction in helping a new employee settle into the organisation. [15]
Q6. Explain the objectives, process and important methods of training used in organisations today. How does an effective training programme contribute to both individual and organisational performance? [15]
Q7. The sales manager of a company has, for three consecutive years, given his favourite team members the highest performance ratings regardless of their actual sales figures, while capable but less sociable employees consistently receive average ratings; this has caused resentment and falling morale in the sales team. Identify the type(s) of appraisal error illustrated in this situation and suggest a comprehensive performance-appraisal system, including measures for performance improvement, that the company should adopt to overcome such bias. [15]
Q8. Discuss the various theories underlying motivation and explain their relevance to the design of remuneration and compensation systems in modern organisations. [15]
Q9. Explain the principles that should guide wage and salary administration in an organisation. Discuss the process of developing equitable pay structures and the emerging trends in this area. [15]
Q10. Discuss the major theories of industrial relations. Explain the concept of collective bargaining and the conditions necessary for its success in resolving disputes between employers and employees. [15]
Set D
Q1. What is the nature and scope of Human Resource Management? Discuss its significance for organisational effectiveness and the major challenges HR managers face today, such as changing workforce demographics and technological disruption. [15]
Q2. Define Human Resource Planning and explain its process in detail. Why is HR planning considered essential, and what are its principal limitations in a rapidly changing business environment? [15]
Q3. Explain the meaning and process of job analysis. Discuss the difference between job description and job specification and their respective uses in human resource management. [15]
Q4. Discuss the factors affecting recruitment and describe the complete recruitment process, including the sources through which suitable candidates can be attracted. [15]
Q5. Explain the concept and objectives of training. Describe the process of designing a training programme and discuss the various training methods available to organisations. [15]
Q6. A newly promoted HR manager notices that performance appraisal ratings across departments are inconsistent: some managers rate almost everyone as 'excellent' while others rate strictly, and employees increasingly distrust the appraisal system. Explain the errors likely responsible for this inconsistency and recommend, with reasons, an appraisal method and a plan for performance improvement that the organisation should adopt to restore employee confidence. [15]
Q7. Discuss the meaning and importance of management development. Explain the various methods used to develop managers and prepare them for higher responsibilities. [15]
Q8. Explain the objectives of compensation planning. Discuss how organisations use pay to motivate employees, drawing upon the relevant theories of motivation and remuneration. [15]
Q9. Discuss the process of developing pay structures in an organisation. Explain the principles of sound wage and salary administration and the current trends shaping compensation practices. [15]
Q10. Explain the concept of workers' participation in management. Discuss its objectives, forms and the role it plays in improving industrial relations within an organisation. [15]
Set E
Q1. Discuss the meaning and importance of Human Resource Management. What present-day challenges, such as globalisation, diversity and skill shortages, make the HR function more demanding than before? [15]
Q2. Explain the process of Human Resource Planning adopted by organisations to forecast manpower needs. Discuss the practical difficulties and limitations that organisations encounter while planning their human resources. [15]
Q3. Explain the process of job analysis and job design. How do job description and job specification support effective recruitment, selection and placement decisions? [15]
Q4. Discuss the various sources of recruitment available to an organisation and the process it follows to fill vacancies. What factors determine the choice of a particular recruitment source? [15]
Q5. Explain the different stages involved in the selection process. Discuss why socialisation and induction of new employees are important, and describe how organisations typically manage promotions, transfers and separations. [15]
Q6. A leading IT company invested heavily in a classroom-based training programme for its software developers, but employees report that the training content is outdated and disconnected from actual project requirements, leading to poor knowledge transfer on the job. Diagnose the weaknesses in the company's training approach and design, with justification, a revised training process, including suitable methods, that would make the programme more effective. [15]
Q7. Explain the meaning and methods of performance appraisal. Discuss the common errors that affect the accuracy of appraisals and suggest measures for planning performance improvement. [15]
Q8. Discuss the objectives of compensation planning and the major theories underlying motivation and remuneration that guide the design of pay systems in organisations. [15]
Q9. A factory's management unilaterally revised its incentive wage scheme without consulting the workers' union, resulting in a sudden strike that halted production for a week and strained relations between labour and management. Explain the theories of industrial relations relevant to this situation and discuss how collective bargaining and workers' participation in management could have been used to prevent or resolve such a dispute. [15]
Q10. Explain the principles of wage and salary administration and discuss the current trends being observed in salary administration in Indian industry today. [15]
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These 200 practice questions across Corporate Accounting, Statistical Methods, Income Tax Law and Accounts, and Managing Human Resources cover the complete Lucknow University B.Com. (NEP) Third Semester syllabus. If you want structured video lectures, unit-wise handwritten notes, previous year questions (PYQ), most important questions (MIQs), and doubt-solving support for all four papers in one place, join LUUPDATE's complete B.Com NEP Semester III course and prepare with a proven, university-aligned study plan.
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