UPHESC Assistant Professor Commerce 2025, 2026 PYQs

Concept: After amalgamation, debts owed between the two companies become owed by the transferee to itself and must be cancelled.

1. Only the common amount, ₹6,00,000, is mutual (B/P of transferee = B/R of transferor taken over).
2. Entry: Bills Payable A/c Dr. 6,00,000 To Bills Receivable A/c 6,00,000.
3. The remaining ₹4,00,000 B/P is owed to outsiders and stays; no capital reserve arises.

Short trick: Cancel only the common amount: Liability Dr., Asset Cr.

Concept: Spearman's rank correlation is a non-parametric measure based on ranks.

1. It needs no assumption of normality – suitable when the population is not normally distributed.
2. It is used for qualitative (rankable) attributes such as beauty, honesty.
3. Karl Pearson's r is used for quantitative, normally distributed data; Spearman's is tedious for large samples.

Short trick: Ranks / non-normal / qualitative → Spearman.

Concept: Factoring is a financial service in which a firm sells/assigns its book debts to a factor for immediate cash.

1. The factor advances typically 75–90% of the value of trade receivables.
2. It also provides sales-ledger management and collection (and in non-recourse factoring, credit risk cover).
3. Inventory is financed by cash credit/hypothecation; fixed assets by term loans.

Short trick: Factoring = cash today for debtors of tomorrow.

Concept: Abnormal loss is valued like good units and removed from the process account.

1. Entry: Abnormal Loss (Wastage) A/c Dr. To Process A/c (credit side of process account).
2. Its scrap value is later credited to Abnormal Loss A/c and the net balance transferred to Costing P&L A/c.
3. Process A/c Dr. / Abnormal Gain A/c Cr. is the entry for abnormal gain.

Short trick: Abnormal loss leaves the process → Process A/c is credited.

Concept: Section 68 of the Indian Contract Act, 1872: a person who supplies necessaries suited to the condition in life of a person incapable of contracting is entitled to be reimbursed from the property of that incapable person.

1. No contract exists, so there is no 'breach of contract' – (A) and (B) fail.
2. The law nevertheless creates a quasi-contractual obligation, so (C) is wrong.
3. Liability is limited to L's property; L is not personally liable.

Short trick: Sec. 68: Necessaries to minor/lunatic → reimbursed from their PROPERTY only.

Concept: Relation: $MR=AR(1-\frac{1}{e})$.

1. Perfectly elastic (e = ∞): MR = AR – true.
2. e = 1: MR = AR(1 − 1) = 0, and TR is maximum – (B) and (D) true.
3. e < 1 (inelastic): 1 − 1/e < 0, so MR is negative – (C) is false.

Short trick: e > 1 → MR +ve; e = 1 → MR 0; e < 1 → MR −ve.

Concept: Section 10(1) exempts agricultural income as defined in Section 2(1A).

1. Agricultural income is exempt (though used for rate purposes under partial integration).
2. Rural agricultural land is not a capital asset under Sec. 2(14), but that is not Sec. 10(1).
3. Self-occupied property has nil/limited annual value under Sec. 23(2); FD interest is taxable.

Short trick: 10(1) = Agriculture; 10(2) = share from HUF; 10(2A) = share of profit from firm.

Concept: Clubbing means including another person's income in the assessee's total income.

1. (D) correct – Sec. 60: income transferred without transferring the asset is taxed in the transferor's hands.
2. (A) wrong – Sec. 60–63 apply to any person (not only individuals).
3. (B) wrong – spouse's remuneration is clubbed only if the individual has substantial interest and it is not due to the spouse's technical/professional skill; (C) wrong – minor's income from manual work or own skill, or a disabled minor's income, is not clubbed.

Short trick: 'Always' in clubbing questions is usually a trap; Sec. 60 = income without asset.

Concept: Halo effect: one outstanding trait (good or bad) colours the rating of all other traits.

1. It is a rating bias, so it reduces objectivity – (A) true.
2. Domination of the evaluation by recent performance is the recency effect, not halo – (R) false.
3. Hence (A) true, (R) false.

Short trick: Halo = one trait; Recency = last few weeks.

Concept: GNP = GDP + Net Factor Income from Abroad (NFIA).

1. GDP = value of final goods and services produced within the domestic territory.
2. NFIA = factor income received from abroad − factor income paid abroad (net, not gross).
3. GDP − depreciation = NDP, not GNP.

Short trick: National = Domestic + NFIA; Net = Gross − Depreciation.

Concept: Segmentation divides a heterogeneous market into homogeneous groups; targeting then selects the segments the firm can serve best (STP).

1. It recognises heterogeneous preferences and matches segments with the firm's strengths – (B).
2. Standardising output across groups is mass (undifferentiated) marketing – opposite of segmentation.
3. Segmentation does not neutralise macro-environment or guarantee uncontested markets.

Short trick: Segment → Target (fit with strengths) → Position.

Concept: BARS (Smith & Kendall, 1963) anchors the points of a rating scale with specific behavioural examples.

1. The numerical scale comes from the graphic rating scale.
2. The anchors are critical incidents of effective/ineffective job behaviour.
3. So BARS = graphic rating scale + critical incident method.

Short trick: BARS = Scale + Stories (critical incidents).

Concept: Results of the period before incorporation are capital in nature, not revenue.

1. Pre-incorporation profit → credited to Capital Reserve.
2. Pre-incorporation loss → a capital loss, debited to Goodwill Account (or set off against capital reserve).
3. It is not charged to the P&L or General Reserve, which belong to post-incorporation revenue.

Short trick: Pre-inc. profit = Capital Reserve; pre-inc. loss = Goodwill.

Concept: Herzberg: hygiene (maintenance) factors prevent dissatisfaction; motivators (achievement, recognition, growth) create motivation.

1. Salary is a hygiene factor – (R) true.
2. Raising a hygiene factor only removes dissatisfaction; it does not 'always' increase motivation – (A) false.
3. Hence (A) false, (R) true.

Short trick: Hygiene = no dissatisfaction; Motivators = satisfaction.

Concept: 'Ad valorem' (Latin) means 'according to value'.

1. Ad valorem duty = fixed percentage of the value of goods (e.g. 10% of CIF value).
2. Duty per unit of weight or quantity = specific duty.
3. Combination of both = compound duty.

Short trick: Valorem = Value.

Concept: Kotler's three levels: core benefit, actual product, augmented product.

1. Actual product = features, design, quality level, brand name and packaging.
2. Augmented product = additional services and benefits: installation, delivery and credit, warranty, after-sales service.
3. So packaging belongs to the actual product, not the augmented product.

Short trick: Augmented = services around the product (install, warranty, service).

Concept: Poisson distribution is the limiting form of the binomial when n → ∞, p → 0 and np = λ is finite.

1. Since p (chance of occurrence) is very small, it describes rare events.
2. Examples: printing mistakes per page, accidents per day, defects per unit.
3. Mean = variance = λ.

Short trick: Rare events = Poisson (n large, p small).

Concept: DuPont: ROI = Net profit margin × Asset turnover.

1. Profit margin = 10%.
2. Asset turnover = Sales ÷ Total assets = 3 times.
3. ROI = 10% × 3 = 30%.

Short trick: ROI = Margin × Turnover (multiply, don't add).

Concept: A Giffen good is a highly inferior good whose quantity demanded rises when its price rises.

1. So its demand curve slopes upward – (A) true.
2. For a Giffen good the income effect is negative (inferior good) and outweighs the positive substitution effect.
3. A positive income effect belongs to normal goods, which never give an upward-sloping demand curve – (R) false.

Short trick: Giffen = strong NEGATIVE income effect > substitution effect.

Concept: Under the LLP Act, 2008 an LLP is a body corporate with a legal entity separate from its partners and perpetual succession (Sec. 3).

1. Death or change of partners does not affect its existence or rights and liabilities.
2. It ends only by winding up/striking off under the Act, not automatically.
3. The legal representatives / new partners can carry on; it does not become a partnership or government property.

Short trick: LLP, like a company, has perpetual succession.