UPSC Civil Services Mains Exam Optional Subject consists of 2 papers. Each paper is of 250 marks, making a total of 500 marks.
Commerce and Accountancy Syllabus – Civil Services Mains Exam UPSC
PAPER – I
Accounting and Finance, Accounting, Taxation & Auditing
1. Financial Accounting:
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.
2. Cost Accounting:
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.
Set – Off and Carry Forward of Loss.
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.
Corporate Restructuring with focus on Mergers and Acquisitions (Financial aspects only).
2. 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.
Organisation Theory and Behaviour, Human Resource Management and Industrial Relations Organisation Theory and Behaviour
1. Organisation Theory:
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.
2. Organisation Behaviour:
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 and Industrial Relations 1. 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.
2. Industrial Relations (IR):
Meaning, Nature, Importance and Scope of IR, Formation of Trade Unions, Trade Union Legislation, Trade Union Movement in India. Recognition of Trade Unions, Problems of Trade Unions in India. Impact of Liberalization on the Trade Union Movement.
Nature of Industrial Disputes: Strikes and Lockouts, Causes of Disputes, Prevention and Settlement of Disputes.
Worker’s Participation in Management: Philosophy, Rationale, Present Day Status, and Future Prospects. Adjudication and Collective Bargaining.
Industrial Relations in Public Enterprises, Absenteeism, and Labour Turnover in Indian Industries and their Causes and Remedies.
ILO and its Functions.
Aadil Sheikh says
I m commerce student..so plz suggest me which book should i buy and read.
preparation with commerce compare to arts subject is tough or not ?
Nothing is touch in this world. As you like the subject then put effort and score well. Commerce and accountancy is very easy to score high mark while compare with other theory subjects.
Md Ramzan Ali says
I am CA – IPCC student can i preparation upsc
I am Hindi medium student…..I have done my graduation in Hindi medium…so am i eligible for IAS prelims ,& mains examination?? Pleasure tell me….
U can bro but your concepts in the subjects should be crystal clear… It is not an academic exam where questions come within your expectations… So prepare yourself for the best… Also watch UPSC’s toppers videos whose optional subjects were commerce
AP Suryavanshi says
Yes u can….u jst have to be graduate…
I’m commerce student please suggest me which book I should buy and read
suresh gaikwad says
i am ca final student please suggest me which book is best for commerce optional
AP Suryavanshi says
Ur CA final books are suffient itself…
jithin M mathew says
CA or Mgt which is a better choice?
Is commerce and accountancy a valuable optional for mains
Is marks are allotted as per step wise entry in practical question or only full marks are allotted to entire right practical question?
Himadri gupta says
Hi I’m hindi medium aspirant and I want to go with commerce optional but i want to know that can i solve numerical ques in english and theoretical in hindi…. Plz help me and suggest. Thanku
CIVIL SERVICE UNDER “Commerce and Accountancy” – MAINS EXAM
WHICH TYPE OF GOVT. WORK WE HANDLE AFTER THAT
1. Commerce and Accounting Department
2. or Other Departments
And main Question is “How It decide the area (field) of Civil Service Aspirants”.
I’m preparing upsc exam 2 yr optional subject commerce and accountancy any pdf material
Is commerce and accountancy sub. For upsc easy or tough..??
what are accounting standard which imp?????
Chakali Raghapppa says
Sir im today start upsc exam preparation tell me how please please
Can we choose accountancy subject in IAS ,and also explain me in details about subject selection
sir i am student of CMA final and just 18 years old i want to do IAS with commerce plz suggest me.
Sourabh Dubey says
first focus on cma final examination becoz you have more time yet your cma intermediate material enough for optional paper first and for second paper rankers notes or sufficient
Sir i am CMA without any graduation
May I eligible to give IAS Paper for Indian civil account service
Ashutosh Patil says
Which assessment year for upsc exam 2021?
sir , i am bcom. student 3rd year .. can i give the ias optional accountancy exam?