Commerce and Accountancy Optional

Commerce and Accountancy Optional

  1. How to prepare for commerce and accountancy optional?

Commerce is one of the technical subjects as an optional. A sufficient number of students opt for this optional. It is a scoring subject and proves to be an advantage for the commerce graduate students. Since they had studied the optional subject during their under graduation. Professionals in this subject can apply their knowledge in both paper 1& 2. For commerce graduate students it is very easy to prepare for the exam and they can score well as compared to those who are from non commerce stream. Most portion of the syllabus is static in nature and can be prepared very easily by consistency.

Commerce syllabus is lengthy and a lot of time needs to be invested in order to prepare for the exam. But still commerce is a good optional subject if fundamentals are clear and a student has sound knowledge about the subject. It is also one of the most interesting subjects and studying it will be helpful to know about the financial aspects. It is always advisable to choose for an optional subject which he/she finds interesting. Given below are some tips that can be used during preparation:

  1. Commerce and accountancy optional requires intensive and vast reading from various sources in order to get compiled form of knowledge. It leads to a comprehensive coverage of the syllabus of both paper 1 & 2.  Thus a student who opts for commerce and accountancy optional need to have habit of reading the texts and chapters from different sources so as to gain enormous knowledge which will ultimately help to ace the exam. Reading will also help to acquaint you with other necessary concepts which might be left while doing preparation without in depth study or reading.
  2. Also commerce and accountancy as an optional requires a lot of practice of different numerical. A student can do a topic and then practice as many numerical as much he/she can. Practice all variety of numerical which can be asked from that particular topic. Even after practicing different numerical many a times unpredictable questions are asked which in turn makes students feel nervous. To overcome these unpredictable numerical prepare yourself with the toughest numerical so that when such numerical come you don’t lose confidence and answer them properly.
  3. If we have a close look then syllabus of paper 1 is equivalent to the level of Thus if had prepared well during your under graduation and studied the syllabus thoroughly then you can score well. Also for paper 1 focus on practicing practical questions along with theoretical questions also. Most of the compulsory questions are theory based questions. In addition to this have a look at current affairs also and prepare them as well. Many a time’s questions are included from current affairs also. Thus a comprehensive study is required to prepare well.
  4. There is lack of good study material available for paper 2. This becomes a major hurdle for many students while preparing for the exam as non availability of good study material hampers the understanding of the syllabus and thus is the biggest challenge while preparing for paper 2. But this challenge can be overcome by writing practice. In addition to this while writing answers use the relevant examples from the current affairs related to the subject’s topic. Keep yourself updated with all the major development and happening in terms of commerce subject. Using such current affairs while writing answers will definitely help you to fetch more marks.
  5. Understanding the syllabus is one of the foremost things to be done in advance before starting the preparation. After which start your preparation in a systematic manner. Have a glimpse at various definitions of different thinkers and authors and develop a link with various topics and chapters which can be later used while writing answers for the final exam.  Also do a general reading of the text of different topics in order to have a conceptual understanding and clarity of the topic. This will enhance your knowledge about the subject and help in better preparation.
  6. While preparing a student refers to various books and study material but few days before the exam it’s not possible to study entire book. So for easy understanding a student should do note making wherein all concepts and others fundamentals of the syllabus are integrated at the same place. All diagrams, figures, definitions, examples and other various important things are compiled in single place without much explanations and providing clear understanding of the topic. This will help in last minute preparation. It will be beneficial for revision and better understanding of the concepts.
  7. In compulsory questions while writing long answers provide an introduction of the answer. The introduction can include general explanation of the question asked and followed by a definition of the authors or thinkers or simply explaining the basics of the question asked. This gives an impression to the examiner that the student has conceptual clarity of the question. It will help to fetch good marks. Also in the end a conclusion can also be provided. Conclusion should summarize the entire answer in few lines while providing a positive note for the question asked.
  8. While writing answer use a language which is easy to understand and simple though maintain the essence of the answer and don’t deviate from the question. Focus your answer with regard to question asked in the paper. Use diagrams and examples to explain the answers this will help you to fetch more marks.
  9. The questions asked should be answered with a positive note or it can a visionary note. Answers should include enough explanations without leaving any important aspect of the answer left unanswered.
  10. For better results understand the topics at which you are good and others not so good. Focus on improving the weak topics and practice the questions relate to topics at which you are good. This will help you in doing preparation in a right manner and score well.



Accounting and Finance 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, 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 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.

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 Organization 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 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 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.


Organisation Theory and Behaviours, Human Resource Management and Industrial Relations Organisation Theory and Behaviour

 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 an 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. Trans-actional 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 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 Union, 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.