BBS First year FM:100

English PM:35
Model Question Time: 3hrs.
2019

Attempt all the questions

Group- A
1. Complete the sentences below with the given expressions dealing with cause/effect
language. Take care with the preposition. 5
brings contributes affects has an influence can result
a. Poverty ---------------- to crime
b. Poverty ---------------- in crime
c. Poverty ---------------- on crime rates
d. Poverty ----------------- crime
e. Poverty ----------------- about crime
2. Rewrite the following sentences choosing the best option from the provided. 5
a. You ------------- to lend me your book.
i. are requesting ii. requested iii. are requested iv. have requested
b. I -------------- my homework. What shall I do now?
i. did ii. have done iii. will do iv. do
c. I think my knee -----------
i. broke ii. is broken iii. has been broken iv. either ‘is broken’ or ‘has been
broken’
d. When we were kids, we ------------- our own toys.
i. were making ii. made iii. had made iv. are making
e. I ------------- Amitav Gosh for several weeks now.
i. have been reading ii. am reading iii. was reading iv. read
3. Answer the following questions as instructed. 5
a. A little girl swings cheerfully in the park. (identify each of the words in the
sentence pattern)
b. He slowly walked into the kitchen and asked for the dinner. (start the sentence
with an adverb)
c. Write an example of a compound sentence joined by the conjunction ‘yet’.
d. Write a compound-complex sentence with only one independent clause.
e. Write an example of a complex sentence using the casual element of the
independent clause.
4. Choose the correct word for the following expressions. 5
a. The color of your outfit compliments/complements your eyes.
b. The grocery in our community is known for its every day/ everyday low price.
c. You can just lie/lay the notebook on the table.
d. It is important for the businessperson to ensure/insure/assure her property
adequately.
e. The interviewer’s job is to appraise/ apprise and evaluate.
5. As a sales representative of an electronics company write a product information of a
washing machine. 5

1
6. Write a memo with your advice to someone planning to travel to Nepal for business.
Outline cultural differences of the country that might impact international business
dealings. Look for differences regarding customs, use of space, hand gestures, time
orientation, social behavior, how business is conducted, and other business-related issues.
5
7. Write instruction to recharge the mobile phone. 5
8. Prepare a brochure design for a travel agency serving in Nepal for four decades 10

Group- B
9. Reading prepares you to respond critically to the ideas of others and to develop ideas of
your own. In this process you highlight the text paying attention to the verbal signals.
How do you recognize the verbal signals? Enumerate each of them with the examples. 7
10. The issue, ‘Finding a job’, is one main idea for topic sentence and it contains a list of
what will be discussed in the paragraph introduced by the topic sentence. Write a
paragraph with a topic sentence using the clues. 6
Finding a job
… go to an employment agency
… read the classified newspaper advertisements
… ask friends and relatives for leads
… send resumes to possible employers
11. Read the following paragraph and answer the question asked below. 6
Perhaps city residents and wild animals were never meant to go together, even in
zoo. Recently a visitor to a large city zoo, ignoring all fences and warning signs
put his arm into the cage of a six-year-old polar bear. Perhaps the man wanted to
feed the bear, or touch him, or even tease him. But the bear, basically the citizen
of the wilds, almost instantly sprang forward and sank his teeth into the man’s
hand. As the man screamed for help, and the bear’s keeper tried to get the bear
under control, the bear sucked in more of the man’s arm. Finally, a policeman had
to shoot and kill the bear so that the man’s arm could be released—which it was.
Thus, there was the killing of a polar bear and the wounding of a city denizen.,
two animals who were meant to be residents of their own worlds, not each other’s.
a. Extract the topic sentence in the paragraph above.
b. Is there more than one main idea in this paragraph?
c. In your own words explain why the incident supports the topic sentence.
12. Rewrite the following paragraph, remove any material that is not part of the main idea
stated in the topic sentence. Add facts, examples, incidents, definitions, comparisons and
contrasts to develop the paragraph more fully. 6

People can take many steps to reduce the stress produced by their hurried
lifestyle. For example, physical exercise such as jogging, swimming or playing
tennis is an excellent method for relieving muscle tension and using up nervous
energy. Such exercise also strengthens the heart, improves blood circulation and
helps with weight control. Another way to reduce stress is by doing deep-
breathing exercises a few times each day; slowly inhaling and exhaling helps the
body relax as the minds rids itself of troublesome thoughts. People who use these

2
 methods often experience a feeling of well-being that improves the overall quality
of their lives.

Group- C
Answer any THREE of the following questions 3x10=30
13. What is Sandra Cisneros’s thesis in “Only Daughters”? What incidents and details
support this thesis?
14. What dominant impression does Heather Rogers try to create in her description of “The
Hidden Life of Garbage”? Is she successful?
15. “The Case against Air Conditioning” is about why America should stop using air
conditioners in everyday life. Is Stan Cox really trying to persuade readers to live in a
world without air conditioning, or do you think he has some other, less extreme purpose
in mind?
16. Is the essay “Why Chinese Mothers are Superior” a point-by-point comparison, a subject-
by-subject comparison, or a combination of the two organizational strategies? Why does
Amy Chua arrange her comparison the way she does?
17. According to Daniel Engber, what is the public’s attitude toward taxing junk food and
soda? How does he support this generalization? What does Engber find “ironic” about
“so many advocates for healthy eating”

J All the Best J

3
 Model Question (Set B)
Microeconomics for Business

Group A
Brief Answer Questions (Attempt all Questions) [10*2=20]
1. Define marginal rate of substitution.
2. List out the factors that cause rightward shift in supply curve.
3. State the law of variable proportions.
4. Why does TR increase at a decreasing rate when MR decreases?
5. Let, CA= RS 150000, CB=RS 100000, CA+B= RS 200000. Compute the degree of
economies of scope.
6. Microeconomics is also called Price Theory. Why?
7. Identify the factors that create interest rate differentials.
8. Write any four characteristics of oligopoly.
9. Let, eP(Newspapers)= -0.6 and eP(Mobile sets)= -1.8. In order to increase the TR, to
which commodity would you suggest to increase price?
10. Demand is a flow concept. Why?

Group B
Descriptive Answer Questions (Attempt any five) [5*10 = 50]
11. What is business economics? Explain its scope. [2+8]
12. Explain the modern theory of rent.
13. Explain the concept of cost-plus pricing with suitable examples.
14. Consider the following demand and supply schedules.
Points A B C D E
Px 0 5 10 15 20
Qdx 60 45 30 15 0
Qsx 10 20 30 40 50

a. Derive linear supply function. Also compute elasticity of supply at equilibrium price.
b. Compute price elasticity of demand at movement from B to D and D to B by percentage
method.
 c. Compute price elasticity of demand at movement at midway between B and D and D and
B by arc method.
d. State the relationship between price elasticity of demand and total revenue. [2+3+3+2]

15. a. Explain the concept of price ceiling and price floor.

b. Let demand function Qd = 300 – 5P, supply function, Qs = -150 - 5P. Determine
consumer’s surplus, producer’s surplus and total surplus. [4+6].
16. a. Differentiate accounting cost and economic cost with suitable examples.
b. Let, cost function, C = 600+20Q-3Q2+O.1Q3
i. Derive TC, AVC, AC and MC functions
ii. Determine the value of TC, AVC, AC and MC at output (Q) =20. [4+ (4+2)]

Group C
Analytical Answer Questions (Any Two) (2*15)
17. How does firm maximize output by investing fixed total cost outlay at given prices on two
inputs? What will be the effect on output when total cost outlay increases?
[8+7]
18. What is monopoly? How are the price and the output determined under it? [2+ (8+5)]
19. a. Derive income consumption curve for normal goods.
b. Let budget = Rs 10000, Px = Rs 200, Py = Rs 100,
(i) Derive budget constraint and identify the consumer’s equilibrium under equal
allocation of budget.
(ii) Let, price of X good falls to Rs 100, Derive new budget constraint. Also identify the
new equilibrium when he allocates Rs 4000 on X goods and Rs 6000 on Y goods.
(iii) Derive price demand curve for X good. [5+ (4+4+2)]
 TRIBHUVAN UNIVERSITY
Faculty Of Management
Office Of The Dean

BBS / 4 Years Programme / First year / MGMT Full Marks :100

Business Statistics ( MGT 202 ) Pass Marks : 35
Time : 3 hrs.
MODEL QUESTION – 2020
Candidates are required to give their answers in their own words as far as practicable. The
figures in the margin indicate full marks.

Group ‘A’
Brief Answer Questions.
Attempt All Questions. (10X2=20)
1) The mean of 200 items was 50. Later on it was found that two items were wrongly taken
as 92 and 8 instead of 192 and 88. Find the correct mean.
2) In a batch of 15 students, 3 students failed in an examination. The marks of passed 12
students were 9, 6, 7, 8, 4, 5, 8, 10, 9, 7, 5, 7. What was the median mark of all 15
students?
3) In a moderately skewed frequency distribution, the mean is 10 and its median is 9, if the
coefficient of variation is 20%. Find the Pearson’s coefficient of skewness of the
distribution.
4) List out the various methods of collecting primary data and secondary data.
5) Calculate the lower and upper quartiles from the following marks distribution:
Marks Below 25 25-29 30-34 35-39 40-44 Above 44
Students 5 12 22 25 17 9
6) If regression coefficient of y on x (byx) = - 0.61 and regression coefficient x on y (bxy) =
- 0.53, calculate the coefficient of correlation and interpret the result.
7) The standard deviation of symmetrical distribution is 5. What must be the value of
fourth moment about mean in order that the distribution be mesokurtic ?
8) A bag contains 20 balls numbered from 1 to 20. One ball is drawn at random. Find the
probability that the number of the drawn ball be multiple of (i) 3 or 7 (ii) 3 or 5.
9) Calculate the price index number from the following data by simple aggregative method.

Commodities A B C D E
Price in 2075 125 105 260 150 250
price in 2076 125 155 250 160 300
10) The following table shows the pay-off matrix related to the demand and strategy of a
business person. What should be the decision if he / she uses I) maximax criterion ii)
maximin criterion?
 Demand
Strategy D1 D2 D3
S1 300 100 80
S2 200 120 60
S3 80 60 20

Group ‘B’
Descriptive Answer Questions.
Attempt any FIVE Questions.. (5X10=50)
11) List the five number summary and prepare a box-and-whisker plot from the following
information. Also, comment on the nature of frequency distribution.
Class Size 20-30 30-40 40-50 50-60 60-70 70-80
Frequency 10 12 25 35 40 50

12) Solve the following system of equations by using determinant method.

2x+5y-z = -3, 4x+3y+2z = 1 & x+2y+3z = -5
13) Calculate Fisher’s ideal index number for the following data and show that it satisfies
(i) Time Reversal Test and (ii) Factor Reversal Test.
Commodity 2018 2019
Price (Rs) Quantity(Units) Price Quantity(Units)
(Rs)
A 8 60 12 58
B 4 110 4 125
C 6 70 8 70
D 12 40 14 38

14) Fit straight line trend by the method of least square to the data given below. Also, find
the trend values and predict the sales for the year 2022.
Year 2013 2014 2015 2016 2017 2018 2019
Sales(000 units) 15 16 17 16 19 23 25

15) A factory manufactures three types of white sheet of papers I, II, and III and distributes
them in two markets A and B. The sales of papers during one year are given below:

Markets Papers
I II III
A 12,000 5,000 23,000
B 14,000 22,000 13,000
a) If unit sale prices of papers I, II and III are Rs 5, Rs 4 and Rs 3 respectively, find
the total revenue in each market with the help of matrix algebra.
 b) If the unit costs of the above papers are Rs 3, Rs 2 and Rs 1 respectively, find
the gross profit.
16) The following is the net profits of two companies in millions of rupees, find which
company shows the greater consistency in the net profit. Justify your answer with
statistical evidence.

Company A 18 19 23 19 25 23 27
Company B 17 18 22 23 24 25 25

Group ‘C’
Analytical Answer Questions.
Attempt any TWO Questions. (2X15=30)
17) A family income and its percentage expenditure on food for 100 families gave the
following bivariate frequency distribution. Find out if there exists any relationship
between family income and expenditure on food and interpret the result. Also test the
significance of the result. Estimate the percentage expenditure on food when family
income = Rs 90,000.

Food expenditure (%) Family income (000Rs)

20-40 40-60 60-80 80-100 100-120
15 - - - 3 7
20 - 4 9 4 3
25 7 6 12 5 -
30 3 10 19 8 -

18) The following distribution shows the frequency distribution of weekly expenditure on
foods of students in certain locality of Kathmandu Metropolitan City. Describe the
various characteristic features of the frequency distribution. Also, comment the nature of
the distribution.

Expenditure 30-40 40-50 50-60 60-70 70-80 80-90 90-100 100-110

(Rs.00)
Number of 10 15 28 33 40 35 25 14
students

19) What do you mean by linear programming model? A person requires minimum 10, 12
and 12 units of chemicals A, B and C respectively. A liquid product contains 5, 2 and 1
units of A, B and C per jar. A dry product contains 1, 2 and 4 units of A, B and C per
carton. If the liquid product costs Rs 30 per jar and dry product costs Rs 20 per carton.
Formulate this problem in linear programming model. How many of each product
should be purchased in order to minimize the cost to meet the requirements. Also find
the minimum cost.
-------------------------------
 Model Question (Set A)
Microeconomics for Business

Group A

Brief Answer Questions (Attempt all Questions) [10x2=20]

1. What is incremental analysis in economics?
2. What is the effect of increase in tax in equilibrium price and quantity?
3. Define cross elasticity of demand?
4. Differentiate between cardinal approach and ordinal approach for demand analysis.
5. Draw the budget line if income of consumer is Rs. 20,000, price of good X is 100 and
Price of good Y is 200.
6. Why does isoquant slope downward?
7. Differentiate between explicit cost and implicit cost.
8. Define predatory pricing.
9. Calculate the equilibrium level of output of the firm when marginal revenue is
MR = 300 – 0.002Q and marginal cost is MC = 20 + 0.0008Q
10. Prepare a list of factors that cause wage differentials.

Group B

Descriptive Answer Questions (Attempt any five) [5x10 = 50]

11. How the production possibility curve is useful to illustrate the economic concepts?
12. What is demand function? Explain its types.
13. Explain the degrees of price elasticity of supply. Value of price elasticity of demand of
milk is calculated as -0.7 and price elasticity of demand of coffee is calculated as -2.0,
interpret the result and explain the nature of the goods. (6+2+2)
14. Explain the law of returns to scale.
15. Explain the consumer's equilibrium in cardinal approach under one-commodity model.
Find the consumer's equilibrium if the price of apple is Rs 20, price of banana is Rs. 10
and the consumer spends whole income Rs. 110 on apple and banana with following
marginal utility (MU) schedule: (4+6)
Units of consumption 1 2 3 4 5 6 7
MU of apple 800 700 600 500 400 300 200
MU of banana 500 450 400 350 300 250 200
16. Consider the following table of labor productivity:
Labor 0 1 2 3 4 5
Total product 0 10 18 24 28 30
Price of product is Rs 5 and wage rate Rs 30. Find the marginal physical product and
marginal revenue product of labor. How does a firm employ profit maximizing number of
labor? If wage rate increases to Rs. 40 what will be the equilibrium situation?
 Group C
Analytical Answer Questions (Any Two) ( 2*15=30)
17. Define cartel. Explain its types. How price is determined under centralized cartel?
(2+3+10)
18. Consider the following schedule of a competitive firm: (10+5)
Output 1 2 3 4 5 6 7 8
AVC 30 27 24 24 30 39.9 53.1 67.5
AC 330 177 123.9 99 90 90 96 105
MC 30 24 18 24 54 90 132 168

a. Graph AVC, AC and MC. What is the position of firm's profit at price Rs. 132,
Rs.90, and Rs. 54? What is the position of firm at price Rs. 24? Does this point
refer to the shut down point? Give reason.
b. Using the cost schedule, explain the relationship of AC with AVC and AFC.

19. "Price effect is the sum of income effect and substitution effect." Explain with the
example of Giffen goods.
 TRIBHUVAN UNIVERSITY
Faculty Of Management
Office Of The Dean

BBS / 4 Years Programme / I year / MGMT Full Marks :100

Business Statistics ( MGT 202 ) Pass Marks : 35
Time : 3 hrs.
MODEL QUESTION – 2020
Candidates are required to give their answers in their own words as far as practicable.
The figures in the margin indicate full marks.
Group – A
Brief Answer Questions.
Attempt ALL Questions. [ 10 x 2 = 20 ]
1. The mean of marks in Statistics of 100 students in a class was 72. The mean of
marks of 70 boys was 75. Find out the mean marks of girls in the class.
2. The difference between the upper quartile and the lower quartile of a certain
frequency distribution is 4 and their sum is 16. Calculate the quartile deviation
and its coefficient.
3. In a single throw of two dice, what is the probability of getting the same numbers
on both dice ?
4. The personnel director for Nepal Drug Limited recorded the average percentage
absentee rates for each quarter for a 4 years period are 55, 67.5, 62.5 and 53,find
the seasonal indices.
5. The coefficient of variation of a symmetrical distribution is 9 % and mean of the
distribution is 40. Find the value of standard deviation and variance.
6. What do you mean by five number summary?What is its application in statistics ?
7. Reconstruct the following index number by shifting the base year as 2053.

Year 2049 2050 2051 2052 2053 2054 2o55

Index Number 100 115 126 134 147 155 163
8. From the following pay- off table, find the best strategy if (i) Maximax criteria is
applied (ii) Maximin criteria is applied.
. PAY- OFF TABLE :
N1 N2 N3
S1 200 50 40
S2 100 60 30
S3 40 30 10
9. For eight pairs of observations on two variables sales ( X ) and Pricing ( Y ) , the
following results were obtained.
∑ = 156 , ∑ = 132 , ∑ = 4162 , ∑ = 2434 , ∑ = 2884
Find out if there exists any relationship between sales and pricing.
10. Find the adjoint matrix of the matrix given below.
1 −2
3 7
 Group – B
Descriptive Answer Questions.
Attempt any FIVE questions. [5× = ]
11. The average weekly wages, standard deviations and number of workers of two
factories are given below.
Factory A Factory B
Average weekly wage Rs. 4600 Rs.4900
Standard Deviations Rs.50 Rs.40
Number of workers 100 80
Calculate the mean and variance of weekly wage of all workers taken together.
Which factory has greater variability in the distribution of weekly wages?
Justify your result with appropriate Statistical tool.
12. Differentiate between “Census” and “Sampling” method of data collection. Why
sampling method is suitable to collect data from large population?
13. (a) Solve the following linear programming problem using graphical method.
Maximize Z = 30 x + 50 y
Subject to constraints:
x + y ≤ 30
x + 2y ≤ 40
x,y ≥ 0
(b) A manufacturing company has 1,000 employees. 10 % of the employees earn
less than Rs. 500 per day , 200 earn between Rs. 500 and Rs. 999 , 30 % earn
between Rs. 1000 and Rs. 1,499 , 250 employees earn between Rs. 1,500 and
Rs. 1,999 and rest earn Rs. 2,000 and above. Calculate the suitable average
wage. Also give the reason for your choice of average.
14. Calculate the index number by using suitable formula for 1985 on the basis of
1980 from the following information :

Year Product X Product Y Product Z

Price Quantity Price Quantity Price Quantity
1980 4 54 3 10 2 5
1985 10 40 8 8 4 5
15. (a) Prove the following by using properties of determinants.
1 1 1
= ( a- b)( b- c )(c- a )( a+ b +c )

( b ) Solve the following equations by using Matrix method.

-x + 3y = 5
2x–4y=0
16. From the following data compute Bowley’s coefficient of skewness and interpret
your result.
Income(00 Rs.) Below 200 200-400 400-600 600-800 800-1000 1000 & above
No. of families 25 40 80 75 20 16
 Group – C
Analytical Answer Questions.
Attempt any TWO questions. [2× = ]
17. The following table represents the annual trend of net profit of two different
companies seeking investment for their development project. As an investment
advisor, in which company would you suggest to invest money ? Justify your
answer by using necessary statistical tools.

Year Net Profit (in million Rs.)

Company - A Company - B
2007 16 16
2008 32 16
2009 40 22
2010 24 36
2011 40 40
2012 32 44
2013 88 48
18. From the following bi-variate frequency tabl , find out if there exists any
relationship between advertisement expenditure (in 00 Rs.) and sales revenue ( in
000 Rs.) and test the significance of the result. Also estimate sales revenue when
advertisement expenditure is Rs. 40,000.

Advertisement Sales Revenue ( in 000 Rs. )

Expenditure (in 00 Rs.) 0 - 50 50 - 100 100 - 150 150 - 200 200 - 250
0 - 40 12 6 8 - -
40 - 80 2 18 4 5 1
80 - 120 - 8 10 2 4
120 - 160 - 1 10 2 1
160 - 200 - - 1 2 3
19. Under an employment promotion programme , it is proposed to allow sale of
newspapers on the business during peak hours. A newspaper boy has the
following probability of selling a magazine.

No. of copies sold 10 11 12 13 14

Probability 0.10 0.15 0.20 0.25 0.30
Cost per copy of magazine is Rs. 30 and sale price per copy is Rs. 50. He cannot
return unsold copies where salvage value is zero.
a. Calculate the expected monetary value ( EMV ) for each strategy.
b. How many copy should be ordered ?
c. Compute expected profit with perfect information ( EPPI ).
d. Also calculate expected value of perfect information ( EVPI ).
 BBS First year FM:100
English PM:35
Model Question Time: 3hrs.
2019

Attempt all the questions

Group- A
1. Complete the sentences below with the given expressions dealing with cause/effect
language. Take care with the preposition. 5
brings contributes affects has an influence can result
a. Poverty ---------------- to crime
b. Poverty ---------------- in crime
c. Poverty ---------------- on crime rates
d. Poverty ----------------- crime
e. Poverty ----------------- about crime
2. Rewrite the following sentences choosing the best option from the provided. 5
a. You ------------- to lend me your book.
i. are requesting ii. requested iii. are requested iv. have requested
b. I -------------- my homework. What shall I do now?
i. did ii. have done iii. will do iv. do
c. I think my knee -----------
i. broke ii. is broken iii. has been broken iv. either ‘is broken’ or ‘has been
broken’
d. When we were kids, we ------------- our own toys.
i. were making ii. made iii. had made iv. are making
e. I ------------- Amitav Gosh for several weeks now.
i. have been reading ii. am reading iii. was reading iv. read
3. Answer the following questions as instructed. 5
a. A little girl swings cheerfully in the park. (identify each of the words in the
sentence pattern)
b. He slowly walked into the kitchen and asked for the dinner. (start the sentence
with an adverb)
c. Write an example of a compound sentence joined by the conjunction ‘yet’.
d. Write a compound-complex sentence with only one independent clause.
e. Write an example of a complex sentence using the casual element of the
independent clause.
4. Choose the correct word for the following expressions. 5
a. The color of your outfit compliments/complements your eyes.
b. The grocery in our community is known for its every day/ everyday low price.
c. You can just lie/lay the notebook on the table.
d. It is important for the businessperson to ensure/insure/assure her property
adequately.
e. The interviewer’s job is to appraise/ apprise and evaluate.
5. As a sales representative of an electronics company write a product information of a
washing machine. 5

1
6. Write a memo with your advice to someone planning to travel to Nepal for business.
Outline cultural differences of the country that might impact international business
dealings. Look for differences regarding customs, use of space, hand gestures, time
orientation, social behavior, how business is conducted, and other business-related issues.
5
7. Write instruction to recharge the mobile phone. 5
8. Prepare a brochure design for a travel agency serving in Nepal for four decades 10

Group- B
9. Reading prepares you to respond critically to the ideas of others and to develop ideas of
your own. In this process you highlight the text paying attention to the verbal signals.
How do you recognize the verbal signals? Enumerate each of them with the examples. 7
10. The issue, ‘Finding a job’, is one main idea for topic sentence and it contains a list of
what will be discussed in the paragraph introduced by the topic sentence. Write a
paragraph with a topic sentence using the clues. 6
Finding a job
… go to an employment agency
… read the classified newspaper advertisements
… ask friends and relatives for leads
… send resumes to possible employers
11. Read the following paragraph and answer the question asked below. 6
Perhaps city residents and wild animals were never meant to go together, even in
zoo. Recently a visitor to a large city zoo, ignoring all fences and warning signs
put his arm into the cage of a six-year-old polar bear. Perhaps the man wanted to
feed the bear, or touch him, or even tease him. But the bear, basically the citizen
of the wilds, almost instantly sprang forward and sank his teeth into the man’s
hand. As the man screamed for help, and the bear’s keeper tried to get the bear
under control, the bear sucked in more of the man’s arm. Finally, a policeman had
to shoot and kill the bear so that the man’s arm could be released—which it was.
Thus, there was the killing of a polar bear and the wounding of a city denizen.,
two animals who were meant to be residents of their own worlds, not each other’s.
a. Extract the topic sentence in the paragraph above.
b. Is there more than one main idea in this paragraph?
c. In your own words explain why the incident supports the topic sentence.
12. Rewrite the following paragraph, remove any material that is not part of the main idea
stated in the topic sentence. Add facts, examples, incidents, definitions, comparisons and
contrasts to develop the paragraph more fully. 6

People can take many steps to reduce the stress produced by their hurried
lifestyle. For example, physical exercise such as jogging, swimming or playing
tennis is an excellent method for relieving muscle tension and using up nervous
energy. Such exercise also strengthens the heart, improves blood circulation and
helps with weight control. Another way to reduce stress is by doing deep-
breathing exercises a few times each day; slowly inhaling and exhaling helps the
body relax as the minds rids itself of troublesome thoughts. People who use these

2
 methods often experience a feeling of well-being that improves the overall quality
of their lives.

Group- C
Answer any THREE of the following questions 3x10=30
13. What is Sandra Cisneros’s thesis in “Only Daughters”? What incidents and details
support this thesis?
14. What dominant impression does Heather Rogers try to create in her description of “The
Hidden Life of Garbage”? Is she successful?
15. “The Case against Air Conditioning” is about why America should stop using air
conditioners in everyday life. Is Stan Cox really trying to persuade readers to live in a
world without air conditioning, or do you think he has some other, less extreme purpose
in mind?
16. Is the essay “Why Chinese Mothers are Superior” a point-by-point comparison, a subject-
by-subject comparison, or a combination of the two organizational strategies? Why does
Amy Chua arrange her comparison the way she does?
17. According to Daniel Engber, what is the public’s attitude toward taxing junk food and
soda? How does he support this generalization? What does Engber find “ironic” about
“so many advocates for healthy eating”

J All the Best J

3
 Model Question (Set B)
Microeconomics for Business

Group A
Brief Answer Questions (Attempt all Questions) [10*2=20]
1. Define marginal rate of substitution.
2. List out the factors that cause rightward shift in supply curve.
3. State the law of variable proportions.
4. Why does TR increase at a decreasing rate when MR decreases?
5. Let, CA= RS 150000, CB=RS 100000, CA+B= RS 200000. Compute the degree of
economies of scope.
6. Microeconomics is also called Price Theory. Why?
7. Identify the factors that create interest rate differentials.
8. Write any four characteristics of oligopoly.
9. Let, eP(Newspapers)= -0.6 and eP(Mobile sets)= -1.8. In order to increase the TR, to
which commodity would you suggest to increase price?
10. Demand is a flow concept. Why?

Group B
Descriptive Answer Questions (Attempt any five) [5*10 = 50]
11. What is business economics? Explain its scope. [2+8]
12. Explain the modern theory of rent.
13. Explain the concept of cost-plus pricing with suitable examples.
14. Consider the following demand and supply schedules.
Points A B C D E
Px 0 5 10 15 20
Qdx 60 45 30 15 0
Qsx 10 20 30 40 50

a. Derive linear supply function. Also compute elasticity of supply at equilibrium price.
b. Compute price elasticity of demand at movement from B to D and D to B by percentage
method.
 c. Compute price elasticity of demand at movement at midway between B and D and D and
B by arc method.
d. State the relationship between price elasticity of demand and total revenue. [2+3+3+2]

15. a. Explain the concept of price ceiling and price floor.

b. Let demand function Qd = 300 – 5P, supply function, Qs = -150 - 5P. Determine
consumer’s surplus, producer’s surplus and total surplus. [4+6].
16. a. Differentiate accounting cost and economic cost with suitable examples.
b. Let, cost function, C = 600+20Q-3Q2+O.1Q3
i. Derive TC, AVC, AC and MC functions
ii. Determine the value of TC, AVC, AC and MC at output (Q) =20. [4+ (4+2)]

Group C
Analytical Answer Questions (Any Two) (2*15)
17. How does firm maximize output by investing fixed total cost outlay at given prices on two
inputs? What will be the effect on output when total cost outlay increases?
[8+7]
18. What is monopoly? How are the price and the output determined under it? [2+ (8+5)]
19. a. Derive income consumption curve for normal goods.
b. Let budget = Rs 10000, Px = Rs 200, Py = Rs 100,
(i) Derive budget constraint and identify the consumer’s equilibrium under equal
allocation of budget.
(ii) Let, price of X good falls to Rs 100, Derive new budget constraint. Also identify the
new equilibrium when he allocates Rs 4000 on X goods and Rs 6000 on Y goods.
(iii) Derive price demand curve for X good. [5+ (4+4+2)]
 Financial Accounting and Analysis
BBS 1st Year
Model Question

Course No.: MGT 211 Full Marks: 100

Nature of the Course: Core Pass Marks: 35

Candidates are required to give their answer in their own words as far as practicable. The
figures in the margin indicate full marks.
Brief Answer Questions (10x2=20)

1. What is business entity concept of accounting?

2. Write about the cash basis of accounting.

3. What are the importance of internal control to a business?

4. Write down the meaning of contingent liabilities.

5. What is long lived assets?

6. On January 1, Simran Company borrowed Rs. 100,000 from bank by signing a 3-month, 12%
notes payable. It paid the principal and interest at due date.
Required: Journal entries for issue and retirement of note.

7. You are provided the following information.

Sales = Rs.300,000 Wages to workers = Rs.50,000

Interest received = Rs.10,000 Income tax paid = Rs.5,000
Cost of bought in materials and services = Rs.180,000
Opening Stock = Rs.20,000 Closing Stock = Rs.30,000

Required: Amount of value added.

8. The following information are given:

 Started business with cash of Rs.80,000

 Paid rent Rs.13,000 including advance rent of Rs.1,000

 Salary paid Rs.16,000 and outstanding salary was Rs.2,000

Required: Accounting equation
9. The following transactions of the Light Company are given below:
 Jestha 5 Returned by Rama Lights
20 Fans @ Rs.1,500 each
2 dozen Lamps @ Rs.900 each
Carriage charge Rs.1,000
Less: Trade discount 10%

Jestha 17 Returned 8 Heaters from KK Lights for Rs.20,000

Jestha 29 Returned 300 Led Lights to Divya Lights Rs.30,000

Required: Return inward book

10. The following information are given,

Trial Balance

Particulars Debit Credit

Sundry Debtors 220,000

Bad Debts 20,000
Provision for Doubtful Debts 30,000

Adjustment:

 Additional Bad Debts to be written off Rs.10000

 New Provision for Doubtful Debts @ 10% on Debtor

Required: Provision for doubtful debt account.
Short Answer Questions (attempt any five) (5x10=50)

11. The following information is provided:

Net Working Capital Rs.600,000 that represents Rs.300,000 inventory value
Current Liabilities Rs.200,000
Capital Employed Rs.1,000,000
Debentures Rs.400,000
Account Receivable Rs.200,000
Operating Profit of the year Rs.100,000 being 10% of Sales
Income Tax is 25%
Required:
a. Net profit after tax b. Liquid Ratio c. Debt Equity Ratio
d. Stock Turnover Ratio e. Average Payable Period f. Return on Shareholder’s Equity
g. Net Profit Margin (1+6x1.5=10)

12. The ABC Company sells a single product for Rs.2 per unit and uses a periodic inventory
system. The following data are available for the year.
 Date Transaction Number of Units Unit Cost Rs. Total Rs.

Baisakh 11 Beginning inventory 1,000 1 1,000

Jestha 16 Purchase 700 1.1 770

Shrawan 22 Sale (1,100)

Kartik 27 Sale (400)

Poush 13 Purchase 800 1.3 1,040

Falgun 15 Sale (600)

Required:

a. Cost of goods sold, ending inventory and gross profit under weighted average costing
method

b. Cost of goods sold, ending inventory and gross profit under FIFO method (5+5=10)

13 a. A firm purchased a machine costing Rs.200,000 on 1st Baishak 2075. The useful life of the
machine is 3 years with expected salvage value of Rs.40,000. The firm decided to invest
the depreciation amount to earn interest at 5% per annum. The sinking fund table shows
that Rs.0.317208 invested at 5% p.a. will give Re. 1 at the end of 3 years. At the end of 3rd
year, the investments were sold for Rs. 100,000.
Required: Depreciation Fund Investment Account

b. Explain the concept of accounting standard. Why it is needed? (2+3=5)

14 a. On 1st Baisakh 2075, MG Group Stockholder’ Equity category appeared as follows:

8% Preferred Stock of Rs.500 par value

1,000 shares issued and outstanding 500,000
Common Stock Rs.100 par value
15,000 shares issued and outstanding 1,500,000
Additional paid in capital – Preferred 300,000
Additional paid in capital – Common 400,000
Total contributed capital 2,700,000
Retained Earnings 2,000,000
Total Shareholders’ Equity 4,700,000

The Preferred Stock is non-cumulative and non-participating. During 2075 the following
transaction occurred

a. On 1st Ashwin, declared a cash dividend of Rs.80,000 on preferred stock. Paid the
dividend on 1st Kartik.
 b. On 1st Mangsir, declared a 10% stock dividend on common stock. The current market
price of the common stock was Rs.180. The stock was issued on Poush

c. On 1st Magh declared a cash dividend of Rs.60 per share on the common stock; paid the
dividend on 30th Magh

d. On 1st Chaitra issued a 2-for-1 stock of common stock, when the stock was selling for
Rs.200 per share.

Required: Develop the Stockholders Equity category of the 31st Chaitra 2075 balance sheet.
Assume the net income for the year was Rs.300,000 (5)

b. Explain the concept of bonds and write down the main characteristics of bond. (5)

15. a. Differentiate between horizontal and vertical analysis. (5)

b. Differentiate between account receivable and note receivable (5)

16. Discuss in brief about the disclosures required for financial statement under Nepal Financial
Reporting Standard (NFRS). (10)

Long Answer Questions (attempt any two) (2x15=30)

17. Following are the transaction of a Computer Service Agency during the month of January.
Jan 2 Received cash Rs.300,000 to start business from the owners of the company.
Jan 8 Deposited into bank Rs.100,000
Jan 10 Signed a two year promissory note at the bank and received cash of Rs.50,000.
Interest 10% along with Rs.50,000 will be repaid at the end of two years.
Jan 11 Purchase of supplies for Rs.30,000 on account. The company has 45 days to pay
for the supplies.
Jan 19 Billed a client Rs.100,000 for service rendered by expert in helping to install a
new computer system. The client is to pay 25% of the bill upon its receipt and the
remaining balance within 60 days.
Jan 21 Paid Rs.10,000 to the advertising company.
Jan 22 Received Rs.45,000 after deduction of 10% discount from the client billed on Jan
19
Jan 26 Received cash of Rs.30,000 for service provided in selecting software for its
computer.
Jan 28 Purchased a computer system for Rs.50,000 in cash.
Jan 30 Paid Rs.50,000 salaries for January and Rs.30,000 rent for February.
Required:
a. Journal entries (5)
b. T accounts (ledger) for income, account receivable and account payable (3)
 c. Triple column cash book (4)
d. Trial Balance (3)

18. The balance sheet of a company for two years are given below:
Liabilities Year 1 Year 2 Assets Year 1 Year 2
Equity Share capital 1,000,000 12,00,000 Fixed assets 1,000,000 1,200,000
Share premium 100,000 120,000 Inventory 200,000 350,000
10% Debentures 120,000 70,000 Accounts receivable 250,000 340,000
Provision for tax 20,000 40,000 Prepaid expenses 20,000 10,000
Provision for dividend 10,000 20,000 Cash 120,000 150,000
Accounts payable 60,000 150,000
Accumulated depreciation 250,000 280,000
Profit and loss a/c 30,000 170,000
1,590,000 2,050,000 1,590,000 2,050,000
Income Statement for the Year 2
Sales revenue Rs.
10,00,000
Less: Cost of goods sold 600,000
Gross Profit 400,000
Less: Operating expenses:
Administrative expenses 150,000
Depreciation 50,000
Provision for tax 40,000
Provision for dividend 20,000
Interest paid 12,000
Premium on redemption of debentures 5,000
Total operating expenses 277,000
Net income 123,000
Add: Gain on sale of fixed assets 17,000
Retained earning 140,000
Additional information
i. A plant costing Rs.50,000 with an accumulated depreciation of Rs.20,000 has been sold
for Rs.47,000.
ii. Dividend paid in year 2 Rs. 10,000.
Required: Cash flow statement by using direct method (6+3+3+3=15)

19. “Financial accounting is based on generally accepted accounting principles, which is enabled
the preparation and presentation of financial statement uniformly,” discuss. (15)
 TRIBHUVAN UNIVERSITY
Faculty Of Management
Office Of The Dean

BBS / 4 Years Programme / I year / MGMT Full Marks :100

Business Statistics ( MGT 202 ) Pass Marks : 35
Time : 3 hrs.
MODEL QUESTION – 2020
Candidates are required to give their answers in their own words as far as practicable.
The figures in the margin indicate full marks.
Group – A
Brief Answer Questions.
Attempt ALL Questions. [ 10 x 2 = 20 ]
1. The mean of marks in Statistics of 100 students in a class was 72. The mean of
marks of 70 boys was 75. Find out the mean marks of girls in the class.
2. The difference between the upper quartile and the lower quartile of a certain
frequency distribution is 4 and their sum is 16. Calculate the quartile deviation
and its coefficient.
3. In a single throw of two dice, what is the probability of getting the same numbers
on both dice ?
4. The personnel director for Nepal Drug Limited recorded the average percentage
absentee rates for each quarter for a 4 years period are 55, 67.5, 62.5 and 53,find
the seasonal indices.
5. The coefficient of variation of a symmetrical distribution is 9 % and mean of the
distribution is 40. Find the value of standard deviation and variance.
6. What do you mean by five number summary?What is its application in statistics ?
7. Reconstruct the following index number by shifting the base year as 2053.

Year 2049 2050 2051 2052 2053 2054 2o55

Index Number 100 115 126 134 147 155 163
8. From the following pay- off table, find the best strategy if (i) Maximax criteria is
applied (ii) Maximin criteria is applied.
. PAY- OFF TABLE :
N1 N2 N3
S1 200 50 40
S2 100 60 30
S3 40 30 10
9. For eight pairs of observations on two variables sales ( X ) and Pricing ( Y ) , the
following results were obtained.
∑ = 156 , ∑ = 132 , ∑ = 4162 , ∑ = 2434 , ∑ = 2884
Find out if there exists any relationship between sales and pricing.
10. Find the adjoint matrix of the matrix given below.
1 −2
3 7
 Group – B
Descriptive Answer Questions.
Attempt any FIVE questions. [5× = ]
11. The average weekly wages, standard deviations and number of workers of two
factories are given below.
Factory A Factory B
Average weekly wage Rs. 4600 Rs.4900
Standard Deviations Rs.50 Rs.40
Number of workers 100 80
Calculate the mean and variance of weekly wage of all workers taken together.
Which factory has greater variability in the distribution of weekly wages?
Justify your result with appropriate Statistical tool.
12. Differentiate between “Census” and “Sampling” method of data collection. Why
sampling method is suitable to collect data from large population?
13. (a) Solve the following linear programming problem using graphical method.
Maximize Z = 30 x + 50 y
Subject to constraints:
x + y ≤ 30
x + 2y ≤ 40
x,y ≥ 0
(b) A manufacturing company has 1,000 employees. 10 % of the employees earn
less than Rs. 500 per day , 200 earn between Rs. 500 and Rs. 999 , 30 % earn
between Rs. 1000 and Rs. 1,499 , 250 employees earn between Rs. 1,500 and
Rs. 1,999 and rest earn Rs. 2,000 and above. Calculate the suitable average
wage. Also give the reason for your choice of average.
14. Calculate the index number by using suitable formula for 1985 on the basis of
1980 from the following information :

Year Product X Product Y Product Z

Price Quantity Price Quantity Price Quantity
1980 4 54 3 10 2 5
1985 10 40 8 8 4 5
15. (a) Prove the following by using properties of determinants.
1 1 1
= ( a- b)( b- c )(c- a )( a+ b +c )

( b ) Solve the following equations by using Matrix method.

-x + 3y = 5
2x–4y=0
16. From the following data compute Bowley’s coefficient of skewness and interpret
your result.
Income(00 Rs.) Below 200 200-400 400-600 600-800 800-1000 1000 & above
No. of families 25 40 80 75 20 16
 Group – C
Analytical Answer Questions.
Attempt any TWO questions. [2× = ]
17. The following table represents the annual trend of net profit of two different
companies seeking investment for their development project. As an investment
advisor, in which company would you suggest to invest money ? Justify your
answer by using necessary statistical tools.

Year Net Profit (in million Rs.)

Company - A Company - B
2007 16 16
2008 32 16
2009 40 22
2010 24 36
2011 40 40
2012 32 44
2013 88 48
18. From the following bi-variate frequency tabl , find out if there exists any
relationship between advertisement expenditure (in 00 Rs.) and sales revenue ( in
000 Rs.) and test the significance of the result. Also estimate sales revenue when
advertisement expenditure is Rs. 40,000.

Advertisement Sales Revenue ( in 000 Rs. )

Expenditure (in 00 Rs.) 0 - 50 50 - 100 100 - 150 150 - 200 200 - 250
0 - 40 12 6 8 - -
40 - 80 2 18 4 5 1
80 - 120 - 8 10 2 4
120 - 160 - 1 10 2 1
160 - 200 - - 1 2 3
19. Under an employment promotion programme , it is proposed to allow sale of
newspapers on the business during peak hours. A newspaper boy has the
following probability of selling a magazine.

No. of copies sold 10 11 12 13 14

Probability 0.10 0.15 0.20 0.25 0.30
Cost per copy of magazine is Rs. 30 and sale price per copy is Rs. 50. He cannot
return unsold copies where salvage value is zero.
a. Calculate the expected monetary value ( EMV ) for each strategy.
b. How many copy should be ordered ?
c. Compute expected profit with perfect information ( EPPI ).
d. Also calculate expected value of perfect information ( EVPI ).
 TRIBHUVAN UNIVERSITY
Faculty Of Management
Office Of The Dean

BBS / 4 Years Programme / First year / MGMT Full Marks :100

Business Statistics ( MGT 202 ) Pass Marks : 35
Time : 3 hrs.
MODEL QUESTION – 2020
Candidates are required to give their answers in their own words as far as practicable. The
figures in the margin indicate full marks.

Group ‘A’
Brief Answer Questions.
Attempt All Questions. (10X2=20)
1) The mean of 200 items was 50. Later on it was found that two items were wrongly taken
as 92 and 8 instead of 192 and 88. Find the correct mean.
2) In a batch of 15 students, 3 students failed in an examination. The marks of passed 12
students were 9, 6, 7, 8, 4, 5, 8, 10, 9, 7, 5, 7. What was the median mark of all 15
students?
3) In a moderately skewed frequency distribution, the mean is 10 and its median is 9, if the
coefficient of variation is 20%. Find the Pearson’s coefficient of skewness of the
distribution.
4) List out the various methods of collecting primary data and secondary data.
5) Calculate the lower and upper quartiles from the following marks distribution:
Marks Below 25 25-29 30-34 35-39 40-44 Above 44
Students 5 12 22 25 17 9
6) If regression coefficient of y on x (byx) = - 0.61 and regression coefficient x on y (bxy) =
- 0.53, calculate the coefficient of correlation and interpret the result.
7) The standard deviation of symmetrical distribution is 5. What must be the value of
fourth moment about mean in order that the distribution be mesokurtic ?
8) A bag contains 20 balls numbered from 1 to 20. One ball is drawn at random. Find the
probability that the number of the drawn ball be multiple of (i) 3 or 7 (ii) 3 or 5.
9) Calculate the price index number from the following data by simple aggregative method.

Commodities A B C D E
Price in 2075 125 105 260 150 250
price in 2076 125 155 250 160 300
10) The following table shows the pay-off matrix related to the demand and strategy of a
business person. What should be the decision if he / she uses I) maximax criterion ii)
maximin criterion?
 Demand
Strategy D1 D2 D3
S1 300 100 80
S2 200 120 60
S3 80 60 20

Group ‘B’
Descriptive Answer Questions.
Attempt any FIVE Questions.. (5X10=50)
11) List the five number summary and prepare a box-and-whisker plot from the following
information. Also, comment on the nature of frequency distribution.
Class Size 20-30 30-40 40-50 50-60 60-70 70-80
Frequency 10 12 25 35 40 50

12) Solve the following system of equations by using determinant method.

2x+5y-z = -3, 4x+3y+2z = 1 & x+2y+3z = -5
13) Calculate Fisher’s ideal index number for the following data and show that it satisfies
(i) Time Reversal Test and (ii) Factor Reversal Test.
Commodity 2018 2019
Price (Rs) Quantity(Units) Price Quantity(Units)
(Rs)
A 8 60 12 58
B 4 110 4 125
C 6 70 8 70
D 12 40 14 38

14) Fit straight line trend by the method of least square to the data given below. Also, find
the trend values and predict the sales for the year 2022.
Year 2013 2014 2015 2016 2017 2018 2019
Sales(000 units) 15 16 17 16 19 23 25

15) A factory manufactures three types of white sheet of papers I, II, and III and distributes
them in two markets A and B. The sales of papers during one year are given below:

Markets Papers
I II III
A 12,000 5,000 23,000
B 14,000 22,000 13,000
a) If unit sale prices of papers I, II and III are Rs 5, Rs 4 and Rs 3 respectively, find
the total revenue in each market with the help of matrix algebra.
 b) If the unit costs of the above papers are Rs 3, Rs 2 and Rs 1 respectively, find
the gross profit.
16) The following is the net profits of two companies in millions of rupees, find which
company shows the greater consistency in the net profit. Justify your answer with
statistical evidence.

Company A 18 19 23 19 25 23 27
Company B 17 18 22 23 24 25 25

Group ‘C’
Analytical Answer Questions.
Attempt any TWO Questions. (2X15=30)
17) A family income and its percentage expenditure on food for 100 families gave the
following bivariate frequency distribution. Find out if there exists any relationship
between family income and expenditure on food and interpret the result. Also test the
significance of the result. Estimate the percentage expenditure on food when family
income = Rs 90,000.

Food expenditure (%) Family income (000Rs)

20-40 40-60 60-80 80-100 100-120
15 - - - 3 7
20 - 4 9 4 3
25 7 6 12 5 -
30 3 10 19 8 -

18) The following distribution shows the frequency distribution of weekly expenditure on
foods of students in certain locality of Kathmandu Metropolitan City. Describe the
various characteristic features of the frequency distribution. Also, comment the nature of
the distribution.

Expenditure 30-40 40-50 50-60 60-70 70-80 80-90 90-100 100-110

(Rs.00)
Number of 10 15 28 33 40 35 25 14
students

19) What do you mean by linear programming model? A person requires minimum 10, 12
and 12 units of chemicals A, B and C respectively. A liquid product contains 5, 2 and 1
units of A, B and C per jar. A dry product contains 1, 2 and 4 units of A, B and C per
carton. If the liquid product costs Rs 30 per jar and dry product costs Rs 20 per carton.
Formulate this problem in linear programming model. How many of each product
should be purchased in order to minimize the cost to meet the requirements. Also find
the minimum cost.
-------------------------------
 Financial Accounting and Analysis
BBS 1st Year
Model Question

Course No.: MGT 211 Full Marks: 100

Nature of the Course: Core Pass Marks: 35

Candidates are required to give their answer in their own words as far as
practicable. The figures in the margin indicate full marks.
Section A
Brief Answer Questions
Attempt ALL Questions (10x2=20)
1. What is financial accounting?
2. What is accrual concept of accounting?
3. Write about the perpetual system of inventory.
4. Write any two differences between stock dividend and stock splits.
5. What is matching concept of accounting?

6. An enterprise has total assets of Rs. 500,000 and liabilities of Rs. 300,000 at the
beginning of the year. During the year, the company earned Rs. 200,000 and
distributed Rs. 50,000 dividend.
Required: Equity at the end of the year
7. The following transactions of the company are given below:
Jestha 2 Acceptance was given to Hari for 3 months for Rs.30,000
Ashad 9 Received from Rajendra an acceptance for 1 month for Rs.8,000
Ashad 27 Discounted Rajendra’s acceptance for Rs.7,900
Shrawan 25 Acceptance was given to Ram for 2 months for Rs.22,000

Required: Bills Payable Book

8. ABC Company receives a one year loan from Nepal Bank Ltd. On 1st Shrawan 2075.
The face value of the Note of Rs.100,000 must be repaid on 31st Ashad 2076 along
with 12% interest.
Required: Journal entries to record the loan and its repayment.

9. Pashupati Company redeemed Rs. 100,000 face value bond issued at premium Rs.
10,000. The unamortized premium was Rs. 6,000 and the bond contains a call
provision of Rs. 103.
Required: Gain or loss on early redemption of bond.

10. Following information are given to you:

Insurance expenses Rs.10,000 Salary Rs.12,000
Commission received Rs.5,000 Interest (Cr.) Rs.7,000
Utilities Rs.8,000 Depreciation Rs.10,000
 Supplies expenses Rs.4,000
Required: Closing entries

Section B
Short Answer Questions
Attempt any FIVE Questions [5x10=50]
st
11. On 31 Chaitra 2075 Bank Statement of Citi College disclosed a balance of
Rs.12,400 and Cash Book showed the balance of Rs.12,500
a. Number of cheques were deposited in the bank but on 31st Chaitra, 2075, a cheque
for Rs.2,000 was not credited in the Bank Statement.
b. Cheques issued of Rs.6,000 but only Rs.2,000 presented before 31st Chaitra.
c. Notes receivable collected by the bank Rs.1,500
d. Cash of Rs.4,800 deposited by the college on Chaitra was recorded by the bank as
Rs.4,200.
e. A cheque for Rs.3,000 received from a student was returned by the bank due to
insufficient fund with the bank.
Required:
i. Journal entries
ii. Bank Reconciliation Statement as on 31st Chaitra 2075
iii. Bank balance on 31st Chaitra balance sheet. (4+5+1=10)

12. Alpha Enterprises provides you the following information related to the
inventories for April 2019. Alpha makes counting and recording of inventories
items only at end of each month.
April 1 Beginning inventory 600 units @ Rs10 each
April 5 Purchased 800 units @ Rs.11 each
April 12 Purchased 1,200 units @ Rs.12 each
April 19 Sold 1,000 units @ 18 each
April 23 Purchased 600 units @ Rs.12 each
April 26 Purchased 220 units @ Rs.15 each
April 30 Sold 1.200 units @ Rs.20 each
Required:
(a) What inventory system the Alpha is adopting? (2)
(b) Ending inventory and cost of goods sold under the LIFO method assuming a
periodic inventory system. (6)
(c) Income statement showing net income, assume depreciation expenses
Rs. 8,000 and other operating expenses Rs. 12,000. (2)

13. a. ABC Company bought a machine, expected to render 72,000 hours of service
for Rs.380,000. Its transportation and installation cost are 10,000 each with
salvage value of Rs.40,000. It has been estimated that the time requires for
manufacturing a finished product is 2 machine hour per unit.

During first 3 years, the company manufactured the goods as under

 Year 1 2 3
Output in units 9,000 10,000 11,000

Required: Machinery account for 3 years. (5)

b. Differentiate between accounting and accountancy. (5)

14 a. During the year of 2075, XYZ Company made total sales of Rs.12,00,000 of
which 70% are on credit. Company collected cash of Rs.768,000 from the open account
in that year. In the year 2075 it has also wrote off Rs.20,000 as an uncollectible account.
The following are balance of accounts at the end of 2074.
Account Receivables Rs.200,000
Allowance for doubtful debt Rs.18,000
Company past performance shows that 5% of its ending balance of account receivable is
expected to be doubtful debt account.
Required:
a. Journal entries for sales, collection and write-off of uncollectible accounts

b. Estimated bad debt for 2075 based on the percentage on account receivable.
Also, journalize it. (3+2=5)

b. Differentiate between capital and revenue expenditure. (5)

15. “A lease is a legal contract under which one party agrees to pay rent properly owned
by other party”, discuss. (10)

16. Explain the meaning of the source of documents. Also, write down the importance
of source of documents. (5+5=10)

Section C

Long Answer Questions (attempt any two) (2x15=30)

17. The ABC Company’s Statement of Profit and Loss a/c and Statement of Financial
Position for two years have been given below:
Statement of Profit and Loss a/c for the year 2075
Particulars Amount (Rs.)
Sales (Including Rs.800,000 credit sales) 15,00,000
Less: Cost of goods sold 900,000
Gross Profit 600,000
Less: Operating Expenses
Depreciation 300,000
Debenture Premium 20,000
Interest paid 10,000
Other Operating Expenses 150,000
Net Income before other income 120,000
Add: Profit from sale of fixed assets (book value Rs.40,000) 20,000
Net profit 140,000
Statement of Financial Position of a company for 2074 and 2075
Capital & Liabilities 2074 2075
Share Capital @ Rs.100 per share 1,200,000 1,500,000
Share Premium 120,000 150,000
General Reserve 40,000 60,000
10% Debenture 200,000 100,000
Account Payable 160,000 240,000
Bank Overdraft 230,000 160,000
Retained Earnings 150,000 290,000
Total 2,100,000 2,500,000
Assets
Fixed Assets 1,500,000 2,000,000
Investment 100,000 200,000
Inventories 50,000 100,000
Account Receivable 235,000 90,000
Cash 200,000 100,000
Preliminary expenses 15,000 10,000
Total 2,100,000 2,500,000
Required for 2075:
a. Current Ratio b. Quick Ratio
c. Debt to Total Capital Ratio d. Inventory Turnover Ratio
e. Total Assets Turnover Ratio f. Net Profit Ratio
g. Return on Equity h. Return on Investment
i. Interest Coverage Ratio j. Account Receivable Turnover
Ratio (10x1.5=15)

18. An unadjusted trial balance of a company are given below.

Particulars Debit (Rs.) Credit (Rs.)
Cash 300,000
Bank 350,000
Discount Allowed 5,000
Furniture 200,000
Purchases 200,000
Debtors 80,000
Interest on loan 7,000
Salary 60,000
Rent 52.000
Capital 600,000
Creditors 45,000
Discount Received 10,000
Sales 500,000
12% Bank Loan 100,000
1,255,000 1,255,000
Adjustment:
a. Closing stock Rs.50,000
b. Prepaid rent was Rs.4,000
c. Outstanding interest on bank loan was Rs.5,000
d. Depreciation on furniture at 25% per annum
Required:
i. Adjusted Trail Balance (2)

ii. Statement of Profit and Loss a/c as per NFRS (4)

iii. Statement of Financial Position as per NFRS (4)

iv. Statement of Cash flow Statement as per NFRS (5)

19. a. Who are the external users of accounting information? Why do they need such
information? (8)
b. Explain about the value added statement with its advantages. (7)
 Model Question (Set A)
Microeconomics for Business

Group A

Brief Answer Questions (Attempt all Questions) [10x2=20]

1. What is incremental analysis in economics?
2. What is the effect of increase in tax in equilibrium price and quantity?
3. Define cross elasticity of demand?
4. Differentiate between cardinal approach and ordinal approach for demand analysis.
5. Draw the budget line if income of consumer is Rs. 20,000, price of good X is 100 and
Price of good Y is 200.
6. Why does isoquant slope downward?
7. Differentiate between explicit cost and implicit cost.
8. Define predatory pricing.
9. Calculate the equilibrium level of output of the firm when marginal revenue is
MR = 300 – 0.002Q and marginal cost is MC = 20 + 0.0008Q
10. Prepare a list of factors that cause wage differentials.

Group B

Descriptive Answer Questions (Attempt any five) [5x10 = 50]

11. How the production possibility curve is useful to illustrate the economic concepts?
12. What is demand function? Explain its types.
13. Explain the degrees of price elasticity of supply. Value of price elasticity of demand of
milk is calculated as -0.7 and price elasticity of demand of coffee is calculated as -2.0,
interpret the result and explain the nature of the goods. (6+2+2)
14. Explain the law of returns to scale.
15. Explain the consumer's equilibrium in cardinal approach under one-commodity model.
Find the consumer's equilibrium if the price of apple is Rs 20, price of banana is Rs. 10
and the consumer spends whole income Rs. 110 on apple and banana with following
marginal utility (MU) schedule: (4+6)
Units of consumption 1 2 3 4 5 6 7
MU of apple 800 700 600 500 400 300 200
MU of banana 500 450 400 350 300 250 200
16. Consider the following table of labor productivity:
Labor 0 1 2 3 4 5
Total product 0 10 18 24 28 30
Price of product is Rs 5 and wage rate Rs 30. Find the marginal physical product and
marginal revenue product of labor. How does a firm employ profit maximizing number of
labor? If wage rate increases to Rs. 40 what will be the equilibrium situation?
 Group C
Analytical Answer Questions (Any Two) ( 2*15=30)
17. Define cartel. Explain its types. How price is determined under centralized cartel?
(2+3+10)
18. Consider the following schedule of a competitive firm: (10+5)
Output 1 2 3 4 5 6 7 8
AVC 30 27 24 24 30 39.9 53.1 67.5
AC 330 177 123.9 99 90 90 96 105
MC 30 24 18 24 54 90 132 168

a. Graph AVC, AC and MC. What is the position of firm's profit at price Rs. 132,
Rs.90, and Rs. 54? What is the position of firm at price Rs. 24? Does this point
refer to the shut down point? Give reason.
b. Using the cost schedule, explain the relationship of AC with AVC and AFC.

19. "Price effect is the sum of income effect and substitution effect." Explain with the
example of Giffen goods.