Commerce and Accountancy Syllabus
Commerce and accountancy is the one of the most concise optional subject for UPSC aspirants. The aspirants with a commerce background can score a very good marks in this optional subject. The topics included under commerce and accountancy optional for UPSC are accounting, cost accounting, taxation, auditing, financial management, financial markets, organizational theory and behaviour, human resource management and industrial relations.
Commerce and Accountancy Syllabus Exam Pattern: -
UPSC Civil Services Mains Exam Optional Subject consists of 2 papers. Each paper is of 250 marks, making a total of 500 marks.
How to prepare Commerce and Accountancy For UPSC
1. Analyse the syllabus and Previous year questions
The aspirants first go through the syllabus carefully and mind-map the topics. Aspirants should be able to filter out the syllabus-centric topics and subcategorise them.
Then they should go through the previous year questions and make a proper analysis of the weightage of each topic.
2. Make your notes comprehensive
The aspirants should make handwritten notes. It is important to make sure they are comprehensive yet extremely to-the-point. The notes should be crisp and concise. The aspirants should constantly keep updating them with current affairs.
3. Revise the notes extensively
The theory part should be revised consistently to retain as much content as possible. Paper-1 is a mix of theory and practical questions while Paper-2 is more on theoretical side. Hence, stick to the syllabus and cover each topic comprehensively.
- Practice the mock tests
The aspirants should practice the questions of previous year. They should also go for multiple mock tests. Solve them multiple times so that you can attempt these questions in minimum time during the exam.
Paper I Syllabus:
· Accounting as a Financial Information System; Impact of Behavioural Sciences. Accounting Standards e.g., Accounting for Depreciation, Inventories, Research and Development Costs, Long-term Construction Contracts, Revenue Recognition, Fixed Assets, Contingencies, Foreign Exchange Transactions, Investments and Government Grants, Cash Flow Statement, Earnings Per Share.
· Accounting for Share Capital Transactions including Bonus Shares, Right Shares, Employees Stock Option and Buy-Back of Securities.
· Preparation and Presentation of Company Final Accounts. Amalgamation, Absorption, and Reconstruction of Companies.
· Nature and Functions of Cost Accounting. Installation of Cost Accounting System. Cost Concepts related to Income Measurement, Profit Planning, Cost Control, and Decision Making.
· Methods of Costing: Job Costing, Process Costing, Activity Based Costing. Volume – cost – Profit Relationship as a tool for Profit Planning.
· Incremental Analysis/ Differential Costing as a Tool of Pricing Decisions, Product Decisions, Make or Buy Decisions, Shut-Down Decisions, etc.
· Techniques of Cost Control and Cost Reduction: Budgeting as a Tool of Planning and Control. Standard Costing and Variance Analysis.
· Responsibility Accounting and Divisional Performance Measurement.
· Income Tax: Definitions; Basis of Charge; Incomes which do not form part of Total Income. Simple problems of Computation of Income (of Individuals only) under Various Heads, i.e.,
· Salaries, Income from House Property, Profits and Gains from Business or Profession, Capital Gains, Income from other sources, Income of other Persons included in Assessee’s Total Income.
· Deductions from Gross Total Income. Salient Features/Provisions Related to VAT and Services Tax.
· Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, Tax audit. Audit of Banking, Insurance, Non-Profit Organizations, and Charitable Societies/Trusts/Organizations.
· Financial Management, Financial Institutions, and Markets 1. Financial Management:
· Finance Function: Nature, Scope, and Objectives of Financial Management: Risk and Return Relationship. Tools of Financial Analysis: Ratio Analysis, Funds-Flow, and Cash-Flow Statement.
· Capital Budgeting Decisions: Process, Procedures, and Appraisal Methods. Risk and Uncertainty Analysis and Methods.
· Cost of capital: Concept, Computation of Specific Costs, and Weighted Average Cost of Capital. CAPM as a Tool of Determining Cost of Equity Capital.
· Financing Decisions: Theories of Capital Structure – Net Income (NI) Approach, Net Operating Income (NOI) Approach, MM Approach, and Traditional Approach. Designing of Capital structure: Types of Leverages (Operating, Financial and Combined), EBIT- EPS Analysis, and Other Factors.
· Dividend Decisions and Valuation of Firm: Walter’s Model, MM Thesis, Gordan’s Model Lintner’s Model. Factors Affecting Dividend Policy.
· Working Capital Management: Planning of Working Capital. Determinants of Working Capital. Components of Working Capital Cash, Inventory, and Receivables.
Financial Markets and Institutions:
· Indian Financial System: An Overview Money Markets: Participants, Structure, and Instruments. Commercial Banks. Reforms in the Banking sector. Monetary and Credit Policy of RBI. RBI as a Regulator.
· Capital Market: Primary and Secondary Market. Financial Market Instruments and Innovative Debt Instruments; SEBI as a Regulator.
· Financial Services: Mutual Funds, Venture Capital, Credit Rating Agencies, Insurance, and IRDA.
Paper II Syllabus:
· Nature and Concept of Organisation; External Environment of Organizations -Technological, Social, Political, Economical and Legal; Organizational Goals – Primary and Secondary goals, Single and Multiple Goals; Management by Objectives.
· Evolution of Organisation Theory: Classical, Neo-classical, and Systems Approach.
· Modern Concepts of Organisation Theory: Organisational Design, Organisational Structure, and Organisational Culture.
· Organizational Design–Basic Challenges; Differentiation and Integration Process; Centralization and Decentralization Process; Standardization / Formalization and Mutual Adjustment. Coordinating Formal and Informal Organizations. Mechanistic and Organic Structures.
· Designing Organizational structures–Authority and Control; Line and Staff Functions, Specialization, and Coordination.
· Types of Organization Structure –Functional. Matrix Structure, Project Structure. Nature and Basis of Power, Sources of Power, Power Structure, and Politics. Impact of Information Technology on Organizational Design and Structure.
· Managing Organizational Culture.
· Meaning and Concept; Individual in organizations: Personality, Theories, and Determinants; Perception – Meaning and Process.
· Motivation: Concepts, Theories, and Applications. Leadership-Theories and Styles.
· Quality of Work Life (QWL): Meaning and its impact on Performance, Ways of its Enhancement. Quality Circles (QC) – Meaning and their Importance. Management of Conflicts in Organizations. Transactional Analysis, Organizational Effectiveness, Management of Change.
Human Resources Management (HRM) :
· Meaning, Nature and Scope of HRM, Human Resource Planning, Job Analysis, Job Description, Job Specification,
· Recruitment Process, Selection Process, Orientation and Placement, Training and Development Process, Performance Appraisal and 360° Feed Back,
· Salary and Wage Administration, Job Evaluation, Employee Welfare, Promotions, Transfers, and Separations.