UPSC Commerce and Accountancy Syllabus for IAS Mains: PDF Download

UPSC Commerce and Accountancy Syllabus: Commerce and Accountancy is one of the 48 optional subjects in the UPSC Mains exam. It mainly focuses on accounting and finance, organization theory and behavior, industrial relations, etc.  Candidates with a commerce background or Chartered Accountants or working in finance will get an edge. They will be able to understand the advanced topics clearly as they have a strong base in this subject.

Going by the previous 5 years' statistics, approximately 180-210 candidates choose Commerce and Accountancy as optional subjects and the success rate hovers around 12%.  Candidates should download the Commerce and Accountancy Syllabus for UPSC before commencing the preparation so that they can cover each and every topic important from the exam point of view. Based on feedback from previous toppers, it is found that the difficulty level of the UPSC Commerce and Accountancy optional subjects was moderate.

In this article, we have compiled the UPSC Commerce and Accountancy Syllabus PDF for Mains, along with question weightage, preparation tips, and best books.

UPSC Commerce and Accountancy Syllabus PDF

The UPSC Commerce and Accountancy optional syllabus is subdivided into two papers, i.e., Paper 1 and Paper 2. The UPSC Commerce and Accountancy subject contributes a total of 500 marks, with each paper carrying 250 marks. Candidates must follow the UPSC Commerce and Accountancy Syllabus PDF for Papers 1 and 2 to avoid missing any important topics.  Download the topic-wise UPSC Commerce and Accountancy Syllabus PDF for papers 1 and 2 shared below.

UPSC Commerce and Accountancy Optional Syllabus For IAS Mains

The UPSC Commerce and Accountancy Optional Syllabus is divided into two papers, i.e., Paper 1 and Paper 2. Candidates should be familiar with the topic-wise UPSC Commerce and Accountancy syllabus for main optional papers 1 and 2 and redefine their preparation accordingly.

UPSC Commerce and Accountancy Syllabus for Paper 1

The UPSC Commerce and Accountancy Paper I syllabus covers topics like  Accounting, Taxation and Auditing (Financing Accounting, Cost Accounting, Taxation, and Auditing) and Financial Management, Financial Institutions and Markets. Check the topic-wise UPSC Commerce and Accountancy Optional Syllabus for Paper I below.

Accounting, Taxation & Auditing

1. Financing 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 and Right Shares. Employees Stock Option and Buy-Back of Securities. Preparation and Presentation of Company Final Accounts. Amalgamations, 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 of 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.
3. 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.
4. 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 is a tool for Determining the 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 a focus on Mergers and Acquisitions (Financial aspect 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.

UPSC Commerce and Accountancy Syllabus for Paper 2

The UPSC Commerce and Accountancy Paper II Syllabus focuses on topics like organization Theory and Behaviours, Human Resource Management, and Industrial Relations Organisation Theory and Behaviour. Check the topic-wise UPSC Commerce and Accountancy Optional Syllabus PDF for Paper II below.

1. Organisation Theory:

Nature and Concept of Organisation; External Environment of Organisation—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 system approach. Modern Concepts of Organisation Theory: Organisational Design, Organisational Structure and Organisational Culture.

Organisational 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 the organization: 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, Orientational and Placement, Training and Development Process, Performance Appraisal and 360° Feed, 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 Union, Trade Union Legislation, Trade Union Movement in India. Recognition of Trade Unions, Problems of Trade Unions in India. Impact of Liberalization on 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. 

How to Prepare the UPSC Commerce and Accountancy Syllabus 2023?

Candidates should carefully check the UPSC Commerce and Accountancy syllabus before commencing the preparation. This will enable them to learn basic fundamentals and advanced chapters important from the exam perspective. The UPSC Commerce and Accountancy optional syllabus is lengthy in nature; aspirants should follow certain tricks to prepare well for the exam efficiently.

• Examine the UPSC Commerce and Accountancy optional syllabus thoroughly, cover higher-weightage topics, and then go for the topics that are rarely asked in the exam.
• Finalize the highly recommended books and study resources that explain the chapters in easy language.
• Solve UPSC Commerce and Accountancy's previous year's question paper to know the nature and type of questions with weightage generally asked in the IAS mains exam.
• Practice answer writing regularly after completing the Commerce and Accountancy syllabus for UPSC to fetch high marks in the exam.

Booklist for UPSC Commerce and Accountancy Optional Syllabus

Candidates should pick the expert-recommended books to prepare well for the UPSC Commerce and Accountancy optional subject. This will strengthen their foundation and help them comprehensively understand the advanced topics. Also, it will allow them to focus only on exam-relevant topics mentioned in the UPSC Commerce and Accountancy Optional Syllabus. Here are the top quality UPSC Commerce and Accountancy Optional books for Paper 1 and Paper 2 below.

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