Commerce Punjab PMS Paper II 2009

PUNJAB PUBLIC SERVICE COMMISSION

COMBINED COMPETITIVE EXAMINATION FOR

RECRUITMENT TO THE POSTS OF

PROVINCIAL MANAGEMENT SERVICE-2009

Subject: COMMERCE (OPTIONAL)
Paper: II

TIME ALLOWED: THREE HOURS MAXIMUM MARKS: 100

NOTE:

(i) Attempt only FIVE questions. Select at least one question each from the Section A, B, C and D. All questions carry EQUAL marks.

(ii) Extra attempt of any question or any part of the attempted Question will not be considered.

(iii) Use of simple calculator is allowed.

(iv) Candidate must draw two straight lines (======) at the end to separate each question attempted in Answer Books.

Q. No. Attempt in ENGLISH Language only.

SECTION A

1 Increase in Exports and Decrease in Imports means Economy is in the way to progress. Discuss.

2 Industrial Developments leads to improve the standard of living in an economy. Why this sector is not flourishing irrespective of the efforts of the Govt. of Pakistan?

SECTION B

3 Define an unqualified Audit Report. Give a specimen of an unqualified Audit Report.

4 Define Speculative Risk and Pure Risk. Discuss the steps normally taken by the management of an organization to manage Pure Risk.

SECTION C

5 (a) Discuss the situations for Small Business Success.
(b) Give your reflections on the causes of small Business Failure.

6 The following information is furnished by Mr. Hamza in respective of the tax year ended June 30. 2008.

1 Basic Salary Rs 10,000 PM
2 Dearness Allowance Rs 8,000
3 Medical Allowance Rs 14,000
4 Loan received from employer @ 2% Rs 40,000
5 Donations for approved Charity Rs 10,000
6 Rent Income Rs 12,000 PM
7 Unadjusted advance received Rs 90,000
8 Income from fish farming business Rs 25.000
9 Share of Association of Person Rs 10,000
10 Prize Bond winning Rs 15,000
11 Dividend received from public Company Rs 12,000

Notes:

(a) Conveyance provided by the Company for private use.
Cost of the conveyance Rs 500.000

(b) Rent-free unfurnished accommodation facility provided by the company to Mr Hamza.

(c) Tax deducted from salary Rs 2,000

(d) Zakat Rs 2,000

Calculate: Taxable Income and Tax Payable by Mr Hamza.

Tax Rates:

Rs 150,000 to Rs 200,000 0.25 %
Rs 200,001 to Rs 250,000 0.50 %
Rs 250,001 to Rs 300,000 0.75 %
Rs 300,001 to Rs 350,000 1.50 %

SECTION D

7 Critically discuss the Monetary Policy of the State Bank of Pakistan with reference to the global financial crunch.

8 Narrate your understanding about the following forms of Planning:
Strategic Planning
Tactical Planning
Operational Planning
Contingency Planning

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