Commerce and Accountancy Optional Book & Syllabus for UPSC

UPSC is one of the most privileged exams of the nation that allows the aspirants to choose the optional subject of their choice. The students who have a Commerce background lean towards Commerce and Accountancy Book & Syllabus optional subject. This subject emphasizes the core concepts so that you can expect meticulous results out of it. Many aspirants prefer this as an optional subject.

If you are the one who inclines this subject then if you become IAS you can put your concepts on the ground to solve various problems faced by the government and businesses. If you are the one who has a relevant background, then this is one of the best choices to go with. Before landing on the preparation strategy for preparation, you must be well-versed with the IAS optional syllabus of Commerce and Accountancy.

If you have not dived well into the syllabus, then you can’t make out the areas of expertise you already possess and where you need to work upon. You have to appear for Paper I and Paper II for Commerce and Accountancy as optional subjects. Each paper will comprise 250 marks each so both of them comprise 500 marks in total.

If you have been searching for a detailed IAS optional syllabus for Commerce and Accounting, then this is the apt guide designed to suit your requirements to the optimum level.

Books for Commerce and Accountancy Optional for UPSC

Books for Paper-I

  • Accounting Corporate Accounting – Naseem Ahmed
  • Accounting Standards- D. S. Rawat
  • Auditing Students’ Guide to Auditing- Aruna Jha
  • Income Tax book by V.K. Singhania or Girish Ahuja
  • Cost Accounting; Theory & Problems- Maheshwari & Mittal
  • Financial Management
  • Taxation- Income Tax, Service Tax & VAT
  • Financial Management; Text and Problems- Khan and Jain
  • Financial Markets & Institutions
  • Indian Financial System- M.Y. Khan
  • Financial Institutions & Markets- L.M. Bhole

Books for Paper-II

  • Human Resource Management- C.B. Gupta
  • Industrial Relations- T.N. Chabra and R.K. Suri
  • Dynamics of Industrial Relations- C.B. Mamoria and Satish Mamoria
  • Human Resource Management- K. Aswathappa
  • Organisation Theory and Behaviour- B.P. Singha and T.N. Chabra
  • Organization Behaviour- L.M. Prasad

These are some of the renowned books by renowned authors that can guide you to the right path of success and will help clear your doubts to a great extent.

Commerce and Accountancy Optional Syllabus Paper-I

Accounting and Finance Accounting, Taxation and Auditing

#1 Financial Accounting:-

Accounting as a Financial Information System; Impact of Behavioural Sciences. Accounting Standards for eg. Accounting for Depreciation, Inventories, Research and Development Costs, Long-term Construction Contracts, Revenue Recognition, Fixed Assets, Contingencies, Foreign Exchange Transactions, Investment 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.

  1. Taxation: 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.

  1. Auditing: 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 for 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.

Commerce and Accountancy Optional Syllabus Paper-II

Organization Theory and Behavior, Human Resource Management, and Industrial Relations Organization Theory and Behaviour

#1 Organization 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 Organization 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 Resource 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° Feedback, 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.

Bottom Line

Commerce and Accounting IAS optional syllabus has been discussed in detail in this article. If you are someone who has opted for this option, then go through the syllabus well so that you are well acquainted with every aspect of the syllabus. Never jump into preparation directly by not visiting the syllabus properly. Your preparation needs to have a firm grip on your syllabus. So, prepare well and have a distinguished plan for your study.

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