PMS Commerce Past Paper 2023 PDF
PUNJAB PUBLIC SERVICE COMMISSION
Combined Competitive Examination (CCE) 2023
For Recruitment to the Posts of Provincial Management Service (PMS)
SUBJECT: Commerce (Paper-1)
Time Allowed: 3 Hours
Maximum Marks: 100
NOTE:
Attempt FIVE Questions in all, selecting minimum TWO questions from each part. Calculator is allowed (not programmable).
PART – A
INSTRUCTIONS
-
Attempt any FIVE questions.
-
All questions carry equal marks.
-
Attempt questions clearly and systematically.
SECTION – A
Q. No. 1
What is the nature of accounting principles? Which organizations have played an active role in developing Generally Accepted Accounting Principles (GAAPs)?
(20 Marks)
Q. No. 2
The following information was taken from the financial records of XYZ company:
(20 Marks)
-
Net income was $189,500 for the period.
-
Purchased 10,000 shares of common stock at $15 per share for treasury.
-
Sold equipment with a carrying value of $32,500 at a gain of $6,000.
-
Purchased land and building worth $450,000 by issuing a 10-year note payable.
-
Issued $1,000,000 bonds at par.
-
Beginning and ending retained earnings were $418,000 and $534,000, respectively.
-
There were no prior period adjustments during the period.
-
Purchased machinery for $118,000 (cash).
-
Sold long-term investments (carrying value $50,000) at a loss of $17,500.
-
Cash dividends were declared and paid during the period.
Required:
Prepare the Net Cash Flows from Financing Activities section of the Statement of Cash Flows.
Q. No. 3
Question
On July 1, a machine which cost $75,000 was sold for $4,000.
The following information was obtained from the accounting records:
-
Accumulated Depreciation (December 31): $61,250
-
Annual Depreciation: $8,750
(10 + 10 = 20 Marks)
Required:
a) Journalize depreciation expense up to the date of sale
b) Journalize the sale of the equipment
Q. No. 4
From the following data, prepare the Balance Sheet:
(20 Marks)
| Particular | Value |
|---|---|
Current Ratio |
2.5 |
Quick Ratio |
1.5 |
Net Working Capital |
Rs. 30,000 |
Stock Turnover Ratio |
6 times |
Gross Profit Ratio |
20% |
Fixed Assets Turnover Ratio |
2 times |
Debtors Turnover Ratio |
2 months |
Fixed Assets to Net Worth |
0.80 |
Reserves to Capital |
0.50 |
PART – B
Q. No. 5
Define standard costing. Explain types of variances computed for:
-
Direct Material
-
Direct Labor
-
Factory Overhead
Give examples.
(20 Marks)
Q. No. 6
Production data for Departments A & B is given.
Required:
-
Compute equivalent production for materials and conversion cost
-
Calculate cost per equivalent unit
(10 + 10 = 20 Marks)
Q. No. 7
The Three Stars Manufacturing Company estimated manufacturing overhead at normal capacity.
Required:
-
Calculate under/over applied overhead
-
Prepare Budget Variance and Volume Variance
(20 Marks)
Q. No. 8
The following data relates to Mandmeyer Company:
(20 Marks)
Financial Data
| Particular | Amount ($) |
|---|---|
Sales |
56,000 |
Finished Goods (Closing) |
1,100 |
Finished Goods (Opening) |
3,500 |
Work in Process (Closing) |
7,500 |
Work in Process (Opening) |
4,000 |
Materials (Closing) |
4,250 |
Materials (Opening) |
4,000 |
Materials Purchased |
18,000 |
Direct Labor |
7,000 |
Factory Overhead |
5,000 |
Additional:
-
Marketing Expenses = 5% of Sales
-
Administrative Expenses = 2% of Sales
-
Other Expenses = 1% of Sales
Required:
-
Cost of Goods Sold Statement
-
Income Statement
(10 + 10 = 20 Marks)
SUBJECT: Commerce (Paper-II)
Time Allowed: 3 Hours
Maximum Marks: 100
Q. No. 1
Elaborate the different causes of adverse balance of payment. Also explain the measures which can be taken to improve the balance of payment.
(20 Marks)
Q. No. 2
(a) What are the essential documents required for the registration of:
-
Partnership
-
Public Limited Company
(b) Discuss the laws/acts governing the registration procedure of a partnership and a public limited company. Elaborate their salient features.
(20 Marks)
Q. No. 3
How do commercial banks create credit? Discuss the process in detail.
(20 Marks)
Q. No. 4
Define internal control and internal check. What are the principles of an effective internal control system in a large-scale departmental store?
(20 Marks)
Q. No. 5
What are the main contributions of Peter Drucker to management philosophy?
Provide a critical evaluation of different researches regarding Drucker’s concepts.
(20 Marks)
Q. No. 6
Differentiate between the following:
a) Authorized Capital and Outstanding Capital
b) Capital and Equity
c) Debit and Credit
d) Bond and Share
(20 Marks)
Q. No. 7
As we know, the central bank of any country performs several functions to maintain financial stability.
Since the coronavirus pandemic caused a global economic downturn, discuss the measures taken by the State Bank of Pakistan to ensure economic and financial stability during and after COVID-19.
(20 Marks)
Question (20 Marks)
Mr. Muhammad Tahir is the Chief Accountant of a commercial organization. He has furnished the following particulars of his income for the tax year ended 30th June 2022.
Notes:
-
Conveyance provided by employer for personal use of employee. Car was purchased by employer for Rs. 750,000.
-
Muhammad Tahir was provided rent free furnished accommodation by his employer. He was entitled to an accommodation allowance of Rs. 26,000 per month, if this accommodation was not provided to him.
-
Zakat paid to an approved organization through crossed cheque Rs. 40,000.
-
Bonus due but not yet received in current year.
