Test Booklet No.

M
COMMERCE
Signature and Name of Invigilator Seat No.
1. (Signature) ......................................... (In figures as in Admit Card)
(Name) ................................................ Seat No. ..............................................................
2. (Signature) ......................................... (In words)

(Name) ................................................ OMR Sheet No.

AUG - 50315 (To be filled by the Candidate)
Time Allowed : 2½ Hours] [Maximum Marks : 150
Number of Pages in this Booklet : 40 Number of Questions in this Booklet : 75
Instructions for the Candidates
1. Write your Seat No. and OMR Sheet No. in the space provided 1.
on the top of this page.
2. This paper consists of 75 objective type questions. Each question
will carry two marks. All questions of Paper-III will be compulsory, 2.
covering entire syllabus (including all electives, without options).
3. At the commencement of examination, the question booklet
will be given to the student. In the first 5 minutes, you are
requested to open the booklet and compulsorily examine it as 3.
follows :
(i) To have access to the Question Booklet, tear off the
paper seal on the edge of this cover page. Do not accept
(i)
a booklet without sticker-seal or open booklet.
(ii) Tally the number of pages and number of questions
in the booklet with the information printed on the (ii)
cover page. Faulty booklets due to missing pages/
questions or questions repeated or not in serial
o rder or any other discre pancy should not be
accepted and correct booklet should be obtained
from the invigilator within the period of 5 minutes.
Afterwards, neither the Question Booklet will be
replaced nor any extra time will be given. The same
may please be noted.
(iii) After this verification is over, the OMR Sheet Number
should be entered on this Test Booklet. (iii)
4. Each question has four alternative responses marked (A), (B),
(C) and (D). You have to darken the circle as indicated below on
the correct response against each item. 4. (A), (B), (C) (D)
Example : where (C) is the correct response.

A B D
(C)
5. Your responses to the items are to be indicated in the OMR
Sheet given inside the Booklet only. If you mark at any place A B D
other than in the circle in the OMR Sheet, it will not be evaluated.
5.
6. Read instructions given inside carefully.
7. Rough Work is to be done at the end of this booklet.
8. If you write your Name, Seat Number, Phone Number or put 6.
any mark on any part of the OMR Sheet, except for the space 7.
allotted for the relevant entries, which may disclose your 8.
identity, or use abusive language or employ any other unfair
means, you will render yourself liable to disqualification.
9. You have to return original OMR Sheet to the invigilator at the
end of the examination compulsorily and must not carry it with 9.
you outside the Examination Hall. You are, however, allowed
to carry the Test Booklet and duplicate copy of OMR Sheet on
conclusion of examination.
10. Use only Blue/Black Ball point pen. 10.
11. Use of any calculator or log table, etc., is prohibited. 11.
12. There is no negative marking for incorrect answers. 12.
 AUG- 50315/III

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 AUG- 50315/III
COMMERCE
Paper III

III
Time Allowed : 2½ Hours] [Maximum Marks : 150
Note : This paper contains Seventy Five (75) multiple choice questions. Each
question carrying Two (2) marks. Attempt All questions.
(75) (2)

1. Which one of the following is not a 1.

capital expenditure ?

(A) Legal expenses incurred in (A)

raising a debenture loan

(B) Compensation paid to a (B)

dismissed employee

(C)
(C) Brokerage paid to the broker at

the time of purchase of land

(D)
(D) Expenses for pulling down an

old structure

3 [P.T.O.
 AUG- 50315/III

2. It is given that the cost of the stock 2. ` 10,000

is ` 10,000. However, its current
market price is ` 9,500 (buying) and ` 9,500 ` 9,000
` 9,000 (selling). If the market price
is interpreted in the sense of
replacement cost, the stock should
be valued at :
(A) ` 9,500
(A) ` 9,500
(B) ` 10,000
(B) ` 10,000

(C) ` 9,000 (C) ` 9,000

(D) ` 500 (D) ` 500

3. Accounting is generally understood 3.

as :
(1)
(1) Summarization of business
transaction (2)

(2) Language of the business (3)

(3) Source of business information (4)

(4) Means of communication

Select the correct answer using the

codes given below :
(A) (1)
(A) (1) only

(B) (1) and (2) (B) (1) (2)

(C) (2) and (3) (C) (2) (3)

(D) (1), (2), (3) and (4) (D) (1), (2), (3) (4)

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 AUG- 50315/III

4. In social accounting, the following 4.

are the measuring parameters :

(1) Value added statement (1)

(2) Employee turnover ratio (2)

(3) Savings in foreign exchange (3)

(4) Capital output ratio
(4)
Which of these statements are
correct ?
(A) (1) (4)
(A) (1) and (4)
(B) (1) (2)
(B) (1) and (2)
(C) (2), (3) (4)
(C) (2), (3) and (4)
(D) (1), (2), (3) (4)
(D) (1), (2), (3) and (4)

5. Indian Companies are generally 5.

following Human Resource

Accounting according to model as

suggested by :
(A)
(A) Morese
(B)
(B) Falmholtz
(C)
(C) Lav and Schwartz

(D)
(D) W.C. Pyle

5 [P.T.O.
 AUG- 50315/III

6. The primary function of Stock 6.

Exchange is to :
(A)
(A) Mobilise savings from the public

for long-term investment

(B)
(B) Offer a secondary market for

shares and other securities

(C) Facilitate barter deals between (C)

buyer and seller holding

different securities

(D) Enable Reserve Bank of India

(D)
to trade in Govt. Securities in

their efforts to control money

supply in the economy

7. In a contract, where the buyer has 7.

a right but not an obligation to

exercise his right is termed as :

(A) Future Contract (A)

(B) Option Contract (B)

(C) Forward Contract (C)

(D) Derivatives (D)

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8. Match List I with List II and select 8. I II

the correct answer from the codes

given below :
I
List I (Activities)
(a)
(a) Mutual Fund
(b)
(b) Public issue of capital
(c)
(c) Forward trading
(d)
(d) Option pricing
II
List II (Associated Organisations)
(1)
(1) Stock Exchange
(2)
(2) Assets Management Company
(3)
(3) Merchant Banking
(4)
(4) Forex market

Codes :
(a) (b) (c) (d)
(a) (b) (c) (d)
(A) (2) (3) (1) (4)
(A) (2) (3) (1) (4)

(B) (2) (3) (4) (1)

(B) (2) (3) (4) (1)

(C) (3) (2) (4) (1) (C) (3) (2) (4) (1)

(D) (3) (2) (1) (4) (D) (3) (2) (1) (4)

7 [P.T.O.
 AUG- 50315/III

9. When the manager has the 9.

responsibility for and authority to

make decision that affect costs and

revenue but no responsibility for or

authority over assets invested in

department, the department is

referred to as.................... .
(A)
(A) Cost Centre

(B)
(B) Profit Centre

(C) Investment Centre (C)

(D) Revenue Centre (D)

10. Venture Capital provides the service

10.
of :
(A)
(A) Seed financing

(B) Purchasing a company (B)

(C) Selling a company (C)

(D) Borrowing and lending from the

(D)
company

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11. In a merger bargain, the exchange 11.

ratio is determined on the basis

of :
(A)
(A) Potential of merging company
(B)
(B) Issued capital of the two

companies

(C)
(C) Market share

(D) Future value of company to the (D)

acquirer

12. Commercial papers are : 12.

(A) Papers transacted at business

(A)

houses

(B) Papers based for financing

(B)
(C) Unsecured negotiable
(C)
promissory notes

(D)
(D) Papers for financial guarantees

9 [P.T.O.
 AUG- 50315/III

13. American Depository Receipt : 13.

(A) is a Euro dominated negotiable

(A)
instrument

(B)
(B) is a dollar denominated

negotiable instrument (C)

(C) it is not a negotiable instrument

but a stock in the capital

(D)
market

(D) is a negotiable instrument

traded settled and cleared in

Europe
14.

14. Credit rating can be done by :

(A) CRISIL
(A) CRISIL

(B)
(B) an Insurance Company

(C) a Mutual Fund Company (C)

(D) a Chit Fund Company (D)

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15. The term ‘Beta’ is synonymous 15.

with :
(A)

(A) Unsystematic Risk

(B)

(B) Market Risk

(C)
(C) Portfolio Risk

(D)
(D) Total Risk

16.
16. The sales oriented concept of

marketing is............... .

(A) Production oriented (A)

(B) Consumer oriented (B)

(C) Promotion oriented

(C)

(D) Price oriented

(D)

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 AUG- 50315/III

17. Four P’s (Product, Price, Promotion, 17.

Place) of marketing were coined

by..................... .
(A)

(A) H. Fayol
(B)

(B) Peter Drucker

(C)
(C) M.C. Carthy

(D)
(D) Kotler

18.
18. Which of the following is not micro-

marketing ?

(A)
(A) Societal

(B)
(B) Customer

(C) Employees (C)

(D) Company Management (D)

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 AUG- 50315/III

19. Which is the right order of buying

19.
decision process ?

(A) Problem recognition,

information search, evaluation (A)
of alternatives, purchase
decision

(B) Information search, problem (B)

recognition, evaluation of
alternatives, purchase decision
(C)
(C) Evaluation of alternatives,
problem recognition, purchase
decision, information search
(D)
(D) Problem recognition,
information search, purchase
decision and evaluation of
20.
alternatives

20. Which among the following is not

a part of marketing plan ?
(A)
(A) Identify marketing objectives
(B)
(B) Determining steps in planning

(C) Achieving goals (C)

(D) Product manufacturing

(D)
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 AUG- 50315/III

21. Long chain of distribution is 21.

required for which goods ?

(A) Industrial goods (A)

(B) Manufactured goods (B)

(C) Durable goods (C)

(D) Fast moving goods (D)

22. Which does not include in direct

22.

marketing ?

(A) Tele-marketing
(A)

(B) e-Mail
(B)

(C) Only marketing

(C)

(D) Catalogue marketing

(D)

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23. Personal factor influencing the 23.

buyer behaviour is....................... .

(A) Life style (A)

(B) Family (B)

(C) Age and life cycle (C)

(D) Fashions (D)

24. Out of the following which is not the

24.

part of product research ?

(A) Quality
(A)

(B) Features
(B)

(C) Transportation
(C)

(D) After sales service

(D)

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 AUG- 50315/III

25. Which is a true statement ? 25.

(A) Buyers and consumers are the (A)

same
(B)

(B) Online marketing is a part of

direct marketing
(C)
(C) Social marketing and modern

marketing are the same

(D)
(D) Micro-environment is un-

controllable

26.
26. Buyer behaviour is basically

.........................in nature.

(A) Economical (A)

(B) Biological (B)

(C) Social (C)

(D) Cultural
(D)

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 AUG- 50315/III

27. Hawthorne experiments are 27.

conducted by.................... .
(A)

(A) Charles Babbage

(B)

(B) Henry Fayol

(C)
(C) F.W. Taylor

(D)
(D) Elton Mayo

28.
28. .........................provides written

information about the product.

(A) Label (A)

(B) Brand
(B)

(C) Trademark
(C)

(D) Company Booklet

(D)

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 AUG- 50315/III

29. ............................is the starting place 29.

of all the marketing activities of an

enterprise.
(A)

(A) Marketing Research

(B)

(B) Marketing Planning

(C)

(C) Marketing Survey

(D)
(D) Marketing Analysis

30.
30. Which of the following is not a

feature of marketing ?

(A)
(A) Integrated Management

(B)
(B) Consumer Orientation

(C)
(C) Profit Maximization

(D) More Sales (D)

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 AUG- 50315/III

31. Human Resource Management 31.

focuses on utilisation of....................... .

(A) Physical Resources (A)

(B) Knowledge (B)

(C) Development (C)

(D) Personnel (D)

32. Which one of the following in the 32.

internal factor is an organisation ?

(A) GDP
(A)

(B) Political
(B)

(C) Customers
(C)

(D) Structure
(D)

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 AUG- 50315/III

33. The following is the basic advantage 33.

of HRM policy :

(A) Competence (A)

(B) Responsibility (B)

(C) Uniformity (C)

(D) Authority (D)

34. Job analysis consists of....................... 34.

(A) Job design (A)

(B) Job rotation (B)

(C) Job option (C)

(D) Job description (D)

35. Fundamentally human resource 35.

planning is based on...................... .

(A) Strategic plan (A)

(B) Personnel (B)

(C) Workforce planning (C)

(D) Job analysis (D)

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36. The main focal thing in recruitment 36.

is................... .
(A)

(A) Human resource planning

(B)

(B) Job description

(C)

(C) Job design

(D)
(D) Attracting the applications

37.
37. The objective of written examination

is.................... .

(A)
(A) to measure experience

(B) to measure performance (B)

(C) to measure ability (C)

(D) to pay compensation (D)

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 AUG- 50315/III

38. Works Committee should be 38.

established as per the provisions of

the Act of the number of employee’s

that is :
(A) 100
(A) 100

(B) 50
(B) 50

(C) 10
(C) 10

(D) 20
(D) 20

39. Worker director is a form of the part 39.

of...................... .

(A) Collective Bargaining (A)

(B) Participative Management

(B)

(C) Trade Union

(C)

(D) Negotiation
(D)

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40. What do you mean by ‘fair wage’ ? 40.

(A) Below the minimum wage (A)

(B) Above the living age (B)

(C) Between minimum and living (C)

wage

(D) Average wage (D)

41. The act of increasing the job

41.

knowledge and skills of an employee

for doing a job is called................... .

(A) Development
(A)

(B) Performance
(B)

(C) Training
(C)

(D) Placement
(D)

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 AUG- 50315/III

42. The process through which 42.

representatives of employers and

employees negotiate regarding

wages is known as.................... .

(A)
(A) Grievance

(B) Discipline (B)

(C) Trade Union Activity

(C)

(D) Collective Bargaining

(D)
43. ...........................is written record of
43.
the duties, responsibilities and

conditions of the job.

(A) Job Description (A)

(B) Job analysis

(B)

(C) Skills inventory

(C)
(D) Human Resource Information

(D)
System

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 AUG- 50315/III

44. The term which describes long-term 44.

training which includes a

combination of both on-the-job and

in-class training is :
(A)
(A) Mentorship

(B)
(B) Computer based Training

(C)
(C) Vestibule Training

(D) Apprenticeship (D)

45. An error of omission when a job 45.

description fails to incorporate

important aspect of the job required

is called :
(A)
(A) Contamination
(B)
(B) Deficiency

(C)
(C) Performance gap

(D)
(D) Dropping

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 AUG- 50315/III

46. Which of the following institutions 46.

is working for regional co-operation

of nations ?

(A) Asian Development Bank (A)

(B) International Finance

(B)
Co-operation
(C)
(C) World Bank

(D) International Monetary Fund (D)

47. The SAARC is not established for 47.

the following objective :

(A) To develop welfare of South (A)

Asian people

(B) To help economical

(B)
development of South Asian

countries
(C)
(C) To help industrial development

of South Asian countries

(D)
(D) To increase the Co-operation

among developing countries

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 AUG- 50315/III

48. The organisation which is promoting 48.

free trade is :
(A)

(A) World Trade Organisation

(B)

(B) International Monetary Fund

(C)
(C) World Bank

(D)
(D) United Nations Union

49.
49. Global Depository Receipts (GDR) is

denominated in.......................... .

(A) U.S. Dollar (A)

(B) British Pound (B)

(C) Euro
(C)

(D) Rupee
(D)

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 AUG- 50315/III

50. The member countries of the 50.

‘NAFTA’ includes U.S.A., Canada,

and.................. .

(A) U.K. (A)

(B) Brazil (B)

(C) Argentina (C)

(D) Mexico (D)

51. Exporters can reduce their risk 51.

by :

(A) Hedging (A)

(B) Arbitrage (B)

(C) Speculation (C)

(D) Arbitrage and Speculation

(D)

52. Which of the following is not the

52.
items of Capital Account ?

(A) External Assistance

(A)
(B) Disbursement
(B)
(C) NRI Deposits
(C)
(D) Official Transfer
(D)

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 AUG- 50315/III

53. A company that has a worldwide 53.

approach to markets and production

is known as :

(A) Multinational enterprises (A)

(B) Multinational efficiency (B)

(C) National undertaking (C)

(D) International company (D)

54. The forward exchange rate may be 54.

quoted at a premium or at a

......................on the spot rate.

(A)
(A) Discount rate

(B)
(B) Proposed dividend rate

(C)
(C) High price

(D) Market price (D)

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 AUG- 50315/III

55. Which of the following is not 55. (Currency)

currency ?

(A) Loko
(A)
(B) Pound
(B)
(C) Lira
(C)
(D) Mark
(D)
56. Induced capital movement have
56.
great significance from the point of

view of formulation of.........................

by a country.

(A) Economic policy (A)

(B) Monetary policy (B)

(C) Fiscal policy (C)

(D) Tax policy (D)

57. Foreign exchange is supplied 57.

by...................... .

(A) Importers
(A)
(B) Exporter
(B)
(C) Buyers of fixed assets abroad
(C)

(D) Borrowing from abroad (D)

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58. Convertibility means freedom to 58.

convert local financial assets into

foreign financial assets and vice

versa at market determined rate of

exchange.

(A)
(A) Capital Account

(B) Current Account (B)

(C) Assets Account (C)

(D) Cash Account (D)

59. Accounting is a function of

59.

International Business :
(A)
(A) False

(B)
(B) True

(C)
(C) Cannot say

(D) Partially true (D)

31 [P.T.O.
 AUG- 50315/III

60. A direct investment is one that gives 60.

the invester a controlling interest in
a company :

(A) Domestic company (A)

(B) Multinational company (B)

(C) Transnational company (C)

(D) Foreign company (D)

61. Which of the following income from 61.
land situated in India is an
agricultural income exempt from
tax ?
(A)
(A) Sale of sugar manufactured
from sugarcane
(B)
(B) Income from nurseries
(C)
(C) Dividend from a company
engaged in agriculture

(D) Income from dairy farming on (D)

a large scale

62. Agricultural income can be taxed 62.

either by :

(A) Central Govt. (A)

(B) State Govt. (B)

(C) Local Authority (C)
(D) Central and State Govt. both (D)
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63. The maximum amount on which 63.

income tax is not chargeable for AY
2013-14 in case of an Indian
Company is :
(A) ` 2,50,000
(A) ` 2,50,000
(B) ` 3,00,000
(B) ` 3,00,000
(C) ` 5,00,000
(C) ` 5,00,000
(D)
(D) Nil
64.
64. Super Senior Citizen as per Income
Tax Act means an individual who
has attained the age of :

(A) 60 years (A) 60

(B) 65 years (B) 65

(C) 75 years (C) 75

(D) 80 years (D) 80

65. Which of the following income of a 65.

Paramveer Chakra Awardee is
exempt from tax ?
(A)
(A) Basic Salary
(B)
(B) Dearness Allowance
(C)
(C) House Rent Allowance

(D) Pension (D)

33 [P.T.O.
 AUG- 50315/III

66. Dividend Distribution tax rate is 66.

given by :
(A)
(A) Income Tax Act, 1961
(B)
(B) Annual Finance Act
(C)
(C) Central Board of Direct Taxes
(D)
(D) Finance Minister of India
67.
67. An employee of a University
` 8
receives ` 8,00,000 on Voluntary
Retirement of a scheme of the
University. He is entitled to have
exemption of ..................... .
(A) ` 5,00,000
(A) ` 5,00,000
(B) ` 8,00,000
(B) ` 8,00,000
(C) ` 2,50,000
(C) ` 2,50,000
(D) ` 4,00,000
(D) ` 4,00,000
68. 44
68. Turnover limit for Tax Audit u/s
14-15
44AB for AY 14-15 is :

(A) ` 10,00,000
(A) ` 10,00,000
(B) ` 65,00,000 (B) ` 65,00,000
(C) ` 40,00,000 (C) ` 40,00,000

(D) ` 1,00,00,000 (D) ` 1,00,00,000

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 AUG- 50315/III

69. A purchases residential flat in 1990 69. 1990 ` 5

for ` 5 lakhs. Mrs. A succeeds the 2000

above flat on the death of A in the

year 2000, on which date the market

value of the property is ` 20 lakhs. 20

Mrs. A sells the above flat in Dec. 2013

2013. Mrs. A will have to adopt for

computation of capital gains :

(A) Cost of acquisition ` 5 lakhs (A) ` 5 1990

with indexation from 1990

(B) Cost of acquisition ` 5 lakhs (B) ` 5 2000

with indexation from 2000

(C) Cost of acquisition ` 20 lakhs (C) ` 20 2000

with indexation from 2000

(D) Cost of acquisition ` 20 lakhs (D) ` 20 1990

with indexation from 1990

35 [P.T.O.
 AUG- 50315/III

70. Mr. X receives 3 gifts of ` 17,000 70.

each from non-relatives aggregating

` 17,000

to ` 51,000. Gifts are taxable in the

` 51,000.

hands of Mr. X to the extent

of :
(A) ` 51,000
(A) ` 51,000
(B) ` 1,000
(B) ` 1,000
(C) ` 25,000
(C) ` 25,000
(D)
(D) NIL
71. 80C
71. Life Insurance premium payment is

not eligible for deduction u/s 80C in

respect of an individual :
(A)
(A) On the life of spouse
(B)
(B) On the life of son
(C)
(C) On the life of married daughter
(D)
(D) On the life of daughter-in-law

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72. The due date for filing income tax 72.

returns to a company subject to

international transfer pricing audit

is.................... .

(A) 31st July (A)

(B) 30th September (B)

(C)
(C) 30th November

(D)
(D) 31st December

73.
73. The aggregate limit for domestic

transfer pricing audit requirement

2014-15
is...................... .(AY 2014-15)

(A) ` 65
(A) ` 65 lakhs

(B) ` 100
(B) ` 100 lakhs

(C) ` 500
(C) ` 500 lakhs

(D) ` 2000
(D) ` 2000 lakhs

37 [P.T.O.
 AUG- 50315/III

74. The tax liability on the total income 74. ` 10

before remuneration and interest

` 60,000
(` 60,000) of a professional firm is
40(b)
` 10,00,000. After considering the

deduction permissible u/s 40(b), the

tax payable by firm excluding

education as will be ..................

(A) ` 3,00,000

(A) ` 3,00,000
(B) ` 2,82,000
(B) ` 2,82,000

(C) ` 1,25,000
(C) ` 1,25,000

(D) ` 85,600 (D) ` 85,600

75. Rate of interest permissible to a firm 75. 40(b)

on the capital of partners u/s 40(b)

is.................. .

(A) 10%
(A) 10%
(B) 11%
(B) 11%
(C) 12%
(C) 12%
(D) 13%
(D) 13%
38
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ROUGH WORK

39 [P.T.O.
 AUG- 50315/III

ROUGH WORK

40