Commerce

Subject : Commerce

Part-I (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, Distinction between capital and
revenue expenditure. Accounting Standards and their application-Accounting
standards relating to fixed assets, depreciation, inventory,
recognition of revenue.
* Final Accounts of Sole Proprietors, Partnership Firms and Limited
Companies-Statutory Provisions -Reserves, Provisions and Funds.
* Final Accounts of non profit organisation.
* Accounting problems related to admission and retirement of a partner
and dissolution of a firm.
* Accounting for Shares and Debentures- Accounting Treatment of
Convertible Debentures.
* 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
Accounting.

* Auditing 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.

Part-II (Business Organisation)

Distinctive features of different forms of business organisation.

* 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 Insurance.

* Management 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.
* Organisation Structure-Centralization and decentralization-Delegation of
authority-span of control-Management by Objectives and Management by
Exception.
* 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 Organisation and Methods (O & M)

* Company Law 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.

Main Examination Syllabus - Subject : Commerce and Accountancy

Paper-I (Accounting & Finance)

Part-I (Accounting, Taxation & Auditing)

* Financial Accounting Accounting as a financial information system;
Impact of behavioural sciences.
* 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.
* Job Costing
* Process Costing
* 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.

* Taxation Definitions
* 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 assessee's
total income.
* Aggregation of income and set off/carry forward of loss.
* Deductions to be made in computing total income.

* Auditing 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 report.
* Auditor's report and qualifications therein.
* Special points in the audit of different organisations like clubs, hospitals,
colleges, charitable societies.

Part-II (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
their application-
* 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 firm's Fixed Income Securities and
Common Stocks.
* Dividend and Retention Policy-Residual Theory or Dividend Policy-Other
Models-Actual Practices.
* 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 (Organisation Theory and Industrial Relations)

Part-I (Organisation 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 organisation; Type, Structure-Line and Staff,
functional matrix, and project-Informal organisation-functions and limitations.
* Evolution of organisation 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
organisation-Transactional Analysis-Significance of culture to organisations.
Limits of rationality-Organisational change, adaptation, growth and development,
Professional management Vs. family management, Organisational control and
effectiveness.

Part-II (Industrial Relations.)

* Nature and scope of indsutrial relations, the socio-economic set-up, need for
positive approach.
* Industrial labour 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
Union movement.
* Industrial disputes-sources; strikes and lockouts.
* Compulsory adjudication and collective bargaining-approaches.
* Worker's 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 labour 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 Organisation.