Easy2Siksha Sample Papers
GNDU Most Repeated (Important) Questions
B.Com 5th Semester
CONTEMPORARY ACCOUNTING
(Based on 4-Year GNDU Question Paper Trend Analysis: 2021–2024)
Must-Prepare Questions (80–100% Probability)
SECTION–A (Human Resource Accounting & Influences on Accounting)
1. Human Resource Accounting – Meaning / Objectives / Scope / Models /
Managerial Use (4 times)
2021 (Q1), 2022 (Q1–Q2), 2023 (Q2), 2024 (Q2)
100% repeated every year — GUARANTEED 2025 question.
2. Influences of Other Disciplines on Accounting (2 times)
2021 (Q2), 2024 (Q1)
Reappeared after a gap — often paired with the emergence of contemporary
issues.
High chance (90%) to appear again in 2025 as a conceptual or short note question.
2025 Smart Prediction Table
(Based on 4-Year GNDU Paper Trend: 2021–2024)
Section
Question Topic
Years
Appeared
Priority
A
Human Resource Accounting – Meaning /
Objectives / Models / Managerial Use
2021–24
Very High
(100%)
A
Influence of Other Disciplines on Accounting
2021, 2024
High (90%)
B
Price Level Accounting – Meaning, Methods,
Utility, Practices
2021–24
Very High
(100%)
2025 GUARANTEED QUESTIONS (100% Appearance Trend)
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Top 5 Must-Prepare Questions (Appeared Every Year 2021–2024)
1. Explain Human Resource Accounting. Discuss its objectives, valuation models,
and managerial uses.
2. What is Price Level Accounting? Discuss its methods, utility, and corporate
practices.
GNDU Most Repeated (Important) Answers
B.Com 5th Semester
CONTEMPORARY ACCOUNTING
(Based on 4-Year GNDU Question Paper Trend Analysis: 2021–2024)
Must-Prepare Questions (80–100% Probability)
SECTION–A (Human Resource Accounting & Influences on Accounting)
1. Human Resource Accounting – Meaning / Objectives / Scope / Models / Managerial
Use (4 times)
2021 (Q1), 2022 (Q1–Q2), 2023 (Q2), 2024 (Q2)
100% repeated every year — GUARANTEED 2025 question.
Ans: Human Resource Accounting – Meaning, Objectives, Scope, Models, and
Managerial Use
Imagine a company as a grand orchestra. There are instruments — drums, violins,
trumpets, pianos — each producing sound, but without musicians, they are just silent
objects. The real magic begins when the musicians, with their skills and harmony,
breathe life into the instruments. Similarly, in any organization, the buildings, machines,
and technology are like the instruments — but the employees are the musicians who
make everything work beautifully.
Yet, for decades, when companies calculated their wealth, they counted only their
machines, buildings, and money — not their people. Strange, isn’t it? That’s where the
concept of Human Resource Accounting (HRA) comes in — a revolutionary idea that
says: “People are not expenses; they are valuable assets.”
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Let’s take a gentle, story-like walk through this concept.
1. Meaning of Human Resource Accounting
Once upon a time in the world of finance, accountants used to record every rupee spent
on furniture, land, or machinery as “assets,” but the salaries and training expenses on
people were treated merely as “costs.” Over time, management experts realized that
this approach was incomplete. After all, what is a company without its people?
Human Resource Accounting (HRA) means measuring, recording, and reporting the
value of human beings as organizational assets.
In simple words, it is the process of identifying how much the organization’s employees
are worth in terms of their skills, experience, knowledge, and contribution. Just as we
account for physical assets, HRA tries to account for human assets.
It aims to answer a powerful question:
“If our people are our greatest strength, why don’t we show their value in our books?”
So, HRA is not only a financial technique but also a philosophy — it changes the way we
look at people, from being costs to being investments.
2. Objectives of Human Resource Accounting
Now, let’s imagine you are the manager of a big company. You have hundreds of
employees, but you don’t know how much value they add to your organization.
Wouldn’t it be helpful if there were a system to measure their contribution and
potential? That’s exactly what HRA aims to do.
Here are its main objectives, explained in simple terms:
1. To know the value of human resources:
HRA helps in finding the real worth of employees, just like we know the value of
buildings or machinery.
2. To help management in decision-making:
When managers know how valuable their people are, they can make better
decisions regarding recruitment, training, promotions, or transfers.
3. To improve employee motivation and performance:
When employees realize that the company considers them as assets, not just
numbers, their morale and productivity rise.
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4. To assist in proper human resource planning:
By understanding which employees add more value, the company can plan hiring,
training, and retention strategies effectively.
5. To provide information to investors and stakeholders:
HRA helps investors see that a company with well-trained and experienced
employees is more likely to succeed.
6. To measure the return on investment in human resources:
It helps to compare the cost of hiring and training people with the benefits they
bring to the organization.
In short, the objective of HRA is to make the invisible value of people visible,
measurable, and manageable.
3. Scope of Human Resource Accounting
The scope of HRA is as vast as human talent itself. It covers various activities related to
the workforce from the moment a person joins the organization until they retire or
leave.
Let’s explore this scope step by step:
• Recruitment and selection:
The cost of hiring — advertisements, interviews, testing — is part of HRA.
• Training and development:
Expenses on training programs, workshops, or skill enhancement are investments
in human capital.
• Employee welfare and motivation:
Benefits like healthcare, insurance, and recreation add to employee value.
• Performance evaluation:
HRA measures how employees’ performance adds to the company’s profitability
and growth.
• Retention and turnover analysis:
It studies how the loss of trained employees affects the company and what can
be done to retain them.
• Retirement and succession planning:
HRA helps in understanding how the exit of experienced employees will impact
the organization.
So, the scope of Human Resource Accounting is not just about financial measurement
but also about understanding and managing people effectively throughout their
organizational journey.
4. Models of Human Resource Accounting
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Now comes the most interesting part — how do we actually measure the value of
human beings?
Over the years, several models have been developed. Let’s discuss some of the most
important ones in a simple and clear way.
(a) Historical Cost Model
This model treats all the money spent on employees — recruitment, training, and
development — as the cost of acquiring a human asset.
Example: If a company spends ₹50,000 training an employee, that amount becomes the
value of that employee.
However, this method ignores the fact that people gain experience and become more
valuable over time.
(b) Replacement Cost Model
This model estimates how much it would cost to replace an existing employee with
another person of similar ability and experience.
Example: If replacing a skilled manager would cost ₹10 lakhs, that’s the value of that
manager.
This model is more realistic because it reflects the current market value of human talent.
(c) Opportunity Cost Model
Here, employees are valued based on the opportunity cost — that is, what the company
loses if the employee works elsewhere.
This approach works well when people are scarce or have unique skills.
(d) Present Value of Future Earnings Model
This model calculates how much income an employee is expected to generate for the
company in the future, discounted to its present value.
For instance, if an employee is expected to contribute ₹5 lakhs per year for the next 5
years, HRA calculates the total value in today’s terms.
(e) Economic Value Model
According to this model, the value of human resources is based on their contribution to
organizational profitability. It emphasizes the economic utility of employees rather than
just their cost.
Each model offers a different lens, but all share the same goal — to recognize and
quantify the value of people in organizations.
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5. Managerial Use of Human Resource Accounting
So, how does all this theory actually help managers? Let’s see how HRA becomes a
powerful management tool in everyday business life.
1. Better Human Resource Planning:
Managers can identify which departments have high-value employees and plan
recruitment or training accordingly.
2. Training and Development Decisions:
HRA helps determine whether spending on training is giving good returns. If not,
the program can be improved.
3. Performance Evaluation:
Managers can measure employee productivity and make fair decisions about
promotions or rewards.
4. Cost Control:
By comparing the cost of human resources with their output, the company can
control unnecessary expenses.
5. Improved Communication and Motivation:
When employees know that their value is recognized, they feel more connected
and loyal to the organization.
6. Succession Planning:
HRA helps identify which employees can take up key roles in the future.
7. Investor Confidence:
Investors see organizations with strong human capital as more stable and
promising, improving the company’s reputation and share value.
Conclusion
Human Resource Accounting is more than just numbers and balance sheets — it’s about
recognizing the heartbeat of an organization. It reminds us that the true wealth of a
company lies not in its buildings or machines, but in its people — their ideas, creativity,
experience, and passion.
In today’s world, where technology changes fast but talent remains the real
differentiator, HRA acts as a guiding compass. It helps managers make wiser decisions,
employees feel valued, and investors understand a company’s real strength.
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2. Influences of Other Disciplines on Accounting (2 times)
2021 (Q2), 2024 (Q1)
Reappeared after a gap — often paired with the emergence of contemporary
issues.
High chance (90%) to appear again in 2025 as a conceptual or short note question.
Ans: A young accountant named Ravi sits in his office, staring at a pile of ledgers. His
manager walks in and says: “Ravi, remember—accounting is not just about debit and
credit. It is like a tree that draws nourishment from many soils: economics, law, statistics,
management, even computer science. If you don’t understand these other disciplines,
your accounting will always feel incomplete.”
That’s the heart of our topic: Influences of Other Disciplines on Accounting. Accounting
is not an isolated island—it is a crossroads where many subjects meet. Let’s walk
through this story step by step, in a way that’s simple, engaging, and examiner-friendly.
Why Accounting Needs Other Disciplines
Accounting is often called the “language of business.” But just like any language, it
borrows words, grammar, and style from others.
• From economics, it borrows the understanding of resources and scarcity.
• From law, it borrows the rules of contracts, taxation, and compliance.
• From mathematics and statistics, it borrows precision and analysis.
• From management, it borrows decision-making tools.
• From computer science, it borrows speed and automation.
Story Analogy: If accounting is a chef, then economics, law, statistics, and other
disciplines are the ingredients. Without them, the dish would be bland or incomplete.
Influences of Other Disciplines on Accounting
Let’s explore each discipline one by one, with examples.
1. Economics and Accounting
• Economics studies how resources are allocated, while accounting records how
resources are used.
• Concepts like cost, revenue, profit, capital, and depreciation come directly from
economics.
• National income accounting (GDP, GNP) is a blend of both.
Story Note: When Ravi prepares a cost sheet, he is unknowingly applying economic
principles of cost and revenue.
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2. Law and Accounting
• Every accounting entry must comply with legal requirements.
• Company law, partnership law, income tax law, GST law—all shape accounting
practices.
• Example: Depreciation methods are guided by the Companies Act.
Analogy: If accounting is the driver, law is the traffic signal. Without law, accounting
would crash into chaos.
3. Mathematics and Accounting
• Accounting is built on arithmetic: addition, subtraction, percentages, ratios.
• Advanced areas like financial modeling use algebra and calculus.
• Ratios (current ratio, debt-equity ratio) are pure mathematical tools.
Story Note: Ravi calculates a 10% discount on sales—simple math, but essential for
accurate accounts.
4. Statistics and Accounting
• Statistics helps in analyzing trends, forecasting, and decision-making.
• Tools like averages, standard deviation, regression are used in budgeting and
auditing.
• Example: Auditors use sampling techniques to check large volumes of data.
Analogy: If accounting is the mirror, statistics is the magnifying glass—it helps us see
patterns clearly.
5. Management and Accounting
• Management accounting is a direct outcome of this relationship.
• Accounting provides data; management uses it for planning, controlling, and
decision-making.
• Example: Break-even analysis, budgetary control, variance analysis.
Story Note: Ravi’s manager asks: “Should we expand production?” The answer comes
from management accounting reports.
6. Computer Science and Accounting
• Modern accounting is impossible without computers.
• Software like Tally, SAP, QuickBooks automate bookkeeping.
• Cloud computing and AI are transforming auditing and reporting.
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Analogy: If traditional accounting was a bicycle, computer science turned it into a
high-speed train.
7. Political Science and Accounting
• Government policies, budgets, and regulations affect accounting.
• Public sector accounting is deeply tied to political decisions.
• Example: Subsidies, grants, and welfare schemes must be recorded as per
government rules.
8. Engineering and Accounting
• In industries like construction or manufacturing, engineers and accountants work
together.
• Cost estimation, project accounting, and asset valuation depend on engineering
inputs.
Story Note: When Ravi’s firm builds a new warehouse, engineers estimate the cost, but
accountants record and depreciate it.
9. Psychology and Accounting
• Behavioral accounting studies how human emotions affect financial decisions.
• Example: Investors may panic during market crashes, leading to irrational
accounting choices.
Real-Life Examples
• Economics + Accounting: National income accounts prepared by the
government.
• Law + Accounting: Filing GST returns as per law.
• Statistics + Accounting: Auditors using sampling to check fraud.
• Computer Science + Accounting: Banks using AI to detect suspicious transactions.
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