Commerce Syllabus for Preliminary Examination
Accounting and Auditing ; Accounting
Nature, Scope and Objectives of Accounting-Accounting as an Information
System-Users of Accounting Information.
Generally Accepted Principles of Accounting-The Accounting Equation-Accrual
Concept-Other concepts and conventions,
(more content follows the advertisement below) A D V E R T I S E M E N T
Distinction between capital and
revenue expenditure. Accounting Standards and their application-Accounting
standards relating to fixed assets, depreciation, inventory, recognition of
Final Accounts of Sole Proprietors, Partnership Firms and Limited
Companies-Statutory Provisions -Reserves, Provisions and Funds.
Final Accounts of non profit organization.
Accounting problems related to admission and retirement of a partner and
dissolution of a firm.
Accounting for Shares and Debentures- Accounting Treatment of Convertible
Analysis and Interpretation of Financial Statements Ratio analysis and
interpretation. Ratios relation to short term liquidity, long term solvency
and profitability-Importance of the rate of return on investment (ROI) in
evaluating the overall performance of a business entity-Cash-flow Statement
and Statement of Source and Application of Funds-Societal obligations of
- Nature, objectives and basic principles of auditing.
- Techniques of Auditing-physical verification, examination of documents and
vouching, direct confirmation, analytical review.
- Planning an audit, audit programmes, working papers, audit process.
- Evaluation of internal controls.
- Test checking and sampling.
- Broad outlines of company audit.
- Audit of non-corporate enterprises.
- Internal and management audit.
Distinctive features of different forms of business organization. Sole Proprietor
Partnerships-characteristics, Registration, Partnership deed, Rights and
duties, Retirement, Dissolution.
Joint Stock Company-Concept, characteristics, types.
Cooperative and State ownership forms of organizations.
Types of securities and methods of their issue.
Economic functions of the capital market, stock exchanges, Mutual Funds.
Control and regulation of capital market.
Business combinations; control of Monopolies. Problems of modernisation of
industrial enterprises. Social Responsibility of business.
Foreign Trade-Procedure and financing of import and export trade. Incentives
for export promotion. Financing of foreign trade.
Insurance-Principles and practice of Life, Fire, Marine and General
Management functions-Planning-strategies, Organising-levels of authority
Staffing, Line function and staff function, Leadership, Communication,
Motivation, Directing-Principles, Strategies.
Coordination-Concept, types, methods.
Control-principles, performance standards, corrective action. Salary and
wage administration-Job evaluation.
Organization Structure-Centralization and decentralization-Delegation of
authority-span of control-Management by Objectives and Management by
Management of change; Crisis Management.
Office Management-scope and principles; systems and routines; handling of
records- modern aids to Office management; office equipment and machines;
Automation and Personal computers.
Impact of Organization and Methods (O & M)
Joint stock companies-incorporation; documents and formalities-Doctrine of
indoor management and constructive notice.
Duties and powers of the board of directors of a company.
Accounts and Audit of Companies.
Company Secretary-role and functions-qualifications for appointment.
Commerce Syllabus for Main Examination
Paper-I Accounting & Finance
Accounting, Taxation & Auditing Financial Accounting
Accounting as a financial information system; Impact of behavioural
Accounting Standards e.g., accounting for depreciation, inventories,
gratuity, research and development costs, long term construction contracts,
revenue recognition, fixed assets, contingencies, foreign exchange
transactions, investments and government grants.
Advanced problems of company accounts.
Amalgamation absorption and reconstruction of companies.
Valuation of shares and goodwill.
Cost Accounting Nature and functions of cost accounting.
Marginal Cositng; Techniques of segregating semi-variable costs into fixed
and variable costs.
Cost-volume-profit relationship; aid to decision making including pricing
decisions, shutdown etc.
Techniques of cost control and cost reduction.
Budgetary control, flexible budgets.
Standard costing and variance analysis.
Responsibility accounting, investment, profit and Cost centres.
Basis of charge.
Incomes which do not form part of total income.
Simple problems of computation of income under various heads, i.e.,
salaries, income from house property, profits and gains from business or
profession, capital gains, income of other persons included in assessees
Aggregation of income and set off/carry forward of loss.
Deductions to be made in computing total income.
Audit of cash transactions, expenses, incomes, purchases, sales.
Valuation and verification of assets with special reference to fixed assets,
stocks and debts.
Verification of liabilities.
Audit of limited companies; appointment, removal, powers, duties and
liabilities of company auditor, significance of true and fare, MAOCARO
Auditors report and qualifications therein.
Special points in the audit of different organisations like clubs,
hospitals, colleges, charitable societies.
Business Finance and Financial Institutions.
Finance Function-Nature, Scope and Objectives of Financial Management-Risk
and Return relationship.
Financial Analysis as a Diagnostic Tool.
Management of Working Capital and its Components-Forecasting working capital
needs, inventory, debtors, cash and credit management.
Investment Decisions-Nature and Scope of Capital Budgeting-Various types of
decisions including Make or Buy and Lease or Buy-Techniques of Appraisal and
Consideration of Risk and Uncertainty-Analysis of Non-financial Aspects.
Rate of Return on Investments-Required Rate of Return-its measurement-Cost
of Capital-Weighted Average Cost-Different Weights.
Concepts of Valuation-Valuation of firms Fixed Income Securities and Common
Dividend and Retention Policy-Residual Theory or Dividend Policy-Other
Capital Structure-Leverages-Significance or Leverages-Theories of Capital
Structure with special reference to Modigliani and Miller approach. Planning
the Capital Structure of a Company; EBIT-EPS Analysis, Cash-flow ability to
service debt, Capital Structure Ratios, other methods.
Raising finance-short term and long term. Bank finance-norms and conditions.
Financial Distress-Approaching BIFR under Sick Industrial Undertakings Act :
Concept of Sickness, Potential Sickness, Cash Loss, Erosion of Networth.
Money Markets-the purpose of Money Markets, Money Market in
India-Organization and working of Capital markets in India-Organization,
Structure and Role of Financial Institutions in India. Banks and Investing
Institutions-National and International Financial Institutions-their norms
and types of financial assistance provided-inter-bank lending-its
regulation, supervision and control. System of Consortium-Supervision and
regulation of banks.
Monetary and Credit policy of Reserve Bank of India.
Paper-II Organization Theory and Industrial Relations
Part-I Organization Theory
Nature and concept of Organisation-Organisation goals; Primary and secondary
goals, Single and multiple goals, ends means chain-Displacement, succession,
expansion and multiplication of goals-Formal organization; Type,
Structure-Line and Staff, functional matrix, and project-Informal
organization-functions and limitations.
Evolution of organization theory : Classical, Neo-classical and system
approach-Bureaucracy; Nature and basis of power, sources of power, power
structure and politics-Organisational behaviour as a dynamic system :
technical, social and power systems-interrelations and
interactions-Perception-Status system. Theoretical and empirical foundation
of theories and Models of motivation. Morale and productivity-Leadership :
Theories and styles-Management of conflicts in organization-Transactional
Analysis-Significance of culture to organisations. Limits of
rationality-Organisational change, adaptation, growth and development,
Professional management Vs. family management, Organisational control and
Part-II Industrial Relations.
Nature and scope of indsutrial relations, the socio-economic set-up, need
for positive approach.
Industrial labor in India and its commitment-stages of commitments.
Migratory nature-merits and shortcomings. Theories of Unionism.
Trade Union movement in India-origin, growth and structure; Attitude and
approach of management of India-recognition. Problems before Indian Trade
Industrial disputes-sources; strikes and lockouts.
Compulsory adjudication and collective bargaining-approaches.
Workers participation in management-philosophy, rationale; present day
state of affairs and future prospects.
Prevention and settlement of industrial disputes in India.
Industrial relations in Public Enterprises.
Absenteeism and labor turnover in Indian Industries-causes
Relative wages and wage differentials; wage policy.
Wage policy in India; the Bonus issue.
I.L.O. and India;
Role of Personnel Department in the Organization.