PUNJAB PUBLIC SERVICE COMMISSION
COMBINED COMPETITIVE EXAMINATION
FOR RECRUITMENT TO THE POSTS OF
PROVINCIAL MANAGEMENT SERVICE, ETC -2022
CASE NO. 2C2023
SUBJECT: COMMERCE (PAPER-II)
TIME ALLOWED:** THREE HOURS MAXIMUM MARKS: 100
NOTE:
i. All the parts (if any) of each Question must be attempted at one place instead of at different places.
ii. Write Q. No. in the Answer Book in accordance with Q. No. in the Q. Paper.
iii. No Page/Space be left blank between the answers. All the blank pages of Answer Book must be crossed.
iv. Extra attempt of any question or any part of the question will not be considered.
Attempt Five Questions in All. Calculator is allowed (Not programmable).
Q No. 1: Elaborate the different causes of adverse balance of payments? Also explain the measures which can be taken in order to improve the balance of payments? (20 Marks)
Q No. 2: (a) What are the features of essential documents required to register a partnership and a public limited company?
(b) Discuss Law/Act to be followed during the registration procedure of a partnership and a public limited company? Elaborate some salient features? (10+10=20 Marks)
Q No. 3: How do commercial banks create credit? Discuss 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: Discuss the main contribution of Peter Drucker to management philosophy. Give critical evaluation of different researchers to Drucker’s concept. (20 Marks)
Q No. 6: Define and differentiate the features of following terms; (5X4=20 Marks)
(a) Authorized capital and the outstanding capital
(b) Capital and equity
(c) Debt and equity
(d) Bond and share
(20 Marks)
Q No. 8: 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. (20 Marks)
Basic Salary Rs. 900,000
Bonus Rs. 120,000
Medical allowance Rs. 92,000
Special allowance p.m. Rs. 7,000
Medical bills reimbursed Rs. 28,000
(without national tax number of medical practitioner)
Reimbursement of entertainment bills (for official meeting) Rs. 140,000
Reimbursement of Internet bills (used for private purpose) Rs. 35,000
Leave encashment during continuity of employment Rs. 25,000
Reimbursement of utilities bills Rs. 100,000
Relocation allowance Rs. 30,500
Fees for refresher course paid by employer Rs. 30,000
Concessional loan benefit @9% Rs. 25,000
Hotel bills paid by the company relating to a pleasure trip Rs. 11,000
Accidental Insurance premium paid by the employer Rs. 50,000
Tax liability borne by the employer Rs. 38,000
Free coupon for lunch Rs. 60,000
Notes:
1. Conveyance provided by employer for personal use of employee. Car was purchased by employer for Rs. 750,000.
2. 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.
3. Zakat paid to an approved organization through crossed cheque Rs. 40,000.
4. Bonus due but not yet received in current year.
Required: Calculate tax payable by Mr. Muhammad Tahir.
**Slabs for Rate of Tax**
| S.# | Slabs | Rate of tax |
|—–|——-|————-|
| 1 | Where the taxable income does not exceed Rs. 6,00,000 | Nil |
| 2 | Where the taxable income exceeds Rs. 6,00,000 but does not exceeds Rs. 12,00,000 | 5% of the amount exceeding Rs. 6,00,000 |
| 3 | Where the taxable income exceeds Rs. 12,00,000 but does exceeds Rs. 18,00,000 | Rs. 30,000 + 10% Amount exceeding Rs. 12,00,000 |
| 4 | Where the taxable income exceeds Rs. 18,00,000 but does not exceeds Rs. 25,00,000 | Rs. 90,000 + 15% of amount exceeding Rs. 18,00,000 |
| 5 | Where the taxable income exceeds Rs. 25,00,000 but does not exceeds Rs. 35,00,000 | Rs. 195,000 + 17.5% of the amount exceeding Rs. 25,00,000 |
| 6 | Where the taxable income exceeds Rs. 35,00,000 but does not exceeds Rs. 50,00,000 | Rs. 3,70,000 + 20% of the amount exceeding Rs. 35,00,000 |
| 7 | Where the taxable income exceeds Rs. 50,00,000 but does not exceeds Rs. 80,00,000 | Rs. 6,70,000 + 22.5% of the amount exceeding Rs. 50,00,000 |
| 8 | Where the taxable income exceeds Rs. 80,00,000 but does not exceeds Rs. 1,20,00,000 | Rs. 13,45,000 + 25% of the amount exceeding Rs. 80,00,000 |
| 9 | Where the taxable income exceeds Rs. 1,20,00,000 but does not exceeds Rs. 3,00,00,000 | Rs. 23,45,000 + 27.5% of the amount exceeding 1,20,00,000 |
| 10 | Where the taxable income exceeds Rs. 3,00,00,000 but does not exceeds Rs. 5,00,00,000 | Rs. 72,95,000 + 30% of the amount exceeding Rs. 3,00,00,000 |
| 11 | Where the taxable income exceeds Rs. 5,00,00,000 but does not exceeds Rs. 7,50,00,000 | Rs. 1,32,95,000 + 32.5% of the amount exceeding Rs. 5,00,00,000 |
| 12 | Where the taxable income exceeds Rs. 7,50,00,000 | Rs. 2,14,20,000 + 35% of amount exceeding Rs. 7,50,00,000 |
**Rate of taxation of Property Income for Individuals and AOP**
| S. No | Gross Amount of Rent | Rate of Tax |
|——-|———————-|————-|
| 1. | Where the gross amount of rent not exceed Rs. 200,000 | Nil |
| 2. | Where the gross amount of rent exceeds Rs. 200,000 but does not exceeds Rs. 600,000 | 5% of gross amount exceeding Rs. 200,000 |
| 3. | Where the gross amount of rent exceeds Rs. 600,000 but does not exceeds Rs. 10,00,000 | Rs. 20,000 plus 10% of the amount exceeding Rs. 600,000 |
| 4. | Where the gross amount of rent exceeds Rs. 10,00,000 but does not exceeds Rs. 20,00,000 | Rs. 60,000 plus 15% of the amount exceeding Rs. 10,00,000 |
| 5. | Where the gross amount of rent exceeding Rs. 20,00,000 | Rs. 210,000 plus 20% of the gross amount exceeding Rs. 20,00,000 |