UPSC Commerce and Accountancy Syllabus

By BYJU'S Exam Prep

Updated on: November 14th, 2023

UPSC Commerce and Accountancy Syllabus cover a wide range of topics that help the candidates to solve the problems faced by businesses and the government. The included topics in the Commerce and Accountancy Optional Syllabus are accounting, auditing, cost accounting, financial markets, financial management, taxation, human resource management, etc. Out of a total of 48 subjects, Commerce is one of the subjects that candidates can opt for in the Mains examination. UPSC Commerce and Accountancy syllabus would feel relevant to the candidates with a commerce background or chartered accountants.

The UPSC Commerce syllabus is formulated in such a way as to test the conceptual understanding of candidates about tax and accounting, and the practical application of concepts to real-life situations faced by individuals, businesses, and government. Below we have mentioned the direct link for the Commerce and Accountancy Optional Syllabus PDF, some of the best books, and preparation strategies to ace this paper.

UPSC Commerce and Accountancy Syllabus

Like other optional subjects, each paper of the Commerce and Accountancy Optional Syllabus carries 250 marks and a total of 500 marks. Candidates who have chosen this subject out of 48 must devise a full-proof plan to cover the entire Syllabus of Commerce and Accountancy Optional for UPSC on time.

Before gearing up for the preparation, candidates should know the complete syllabus. Being familiar with the topics would help them to figure out a strategic approach to crack this paper. But before that, check out the structure of the UPSC commerce and accountancy syllabus tabulated here:

UPSC Commerce and Accountancy Syllabus Topics Marks
Paper 1 UPSC Accountancy Optional Syllabus: Accounting and Finance, Accounting, Taxation & Auditing 250
Paper 2 UPSC Commerce Syllabus: Organisation Theory and Behaviour, Human Resource Management and Industrial Relations Organisation Theory and Behaviour 250

UPSC Commerce and Accountancy Syllabus PDF

The PDF of the Commerce and Accountancy optional syllabus is released along with the UPSC Prelims and Mains syllabus. It is recommended to keep the syllabus PDF handy while preparing for the subject so that no topic is missed.

Check the detailed syllabus of Papers 1 and 2 of Commerce and Accountancy in UPSC Mains Optional below.

Commerce and Accountancy Optional Syllabus Paper 1

Syllabus of Commerce and Accountancy Optional for UPSC Paper 1 contains more practical questions, and one can fetch good marks with regular practice. In addition, candidates will have to focus on theory-based questions as most of the compulsory questions will be theory-based. If you look at paper 1 of the UPSC commerce and accountancy syllabus closely, you will find out that the level of this paper is the same as Hons or CA Inter. Therefore you need to follow books of that particular level.

UPSC Commerce and Accountancy Syllabus for Paper 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, Government Grants, Cash Flow Statements, 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.

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.

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.

Auditing – Company Audit: Audit related to Divisible Profits, Dividends, Special investigations, and Tax audit.

– Audit of Banking, Insurance, Non-Profit Organizations, and Charitable Societies/Trusts/Organizations.

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 a focus on Mergers and Acquisitions (Financial aspects only).

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 Paper 2

On the other hand, questions from the UPSC commerce and accountancy syllabus in Paper 2 will be theoretical. That’s why candidates must build a solid foundation, and clear all the basics to ace Paper 2 of the UPSC commerce syllabus.

Commerce and Accountancy Optional Syllabus for Paper 2
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.

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 (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° Feed Back, Salary and Wage Administration, Job Evaluation, Employee Welfare, Promotions, Transfers, and Separations.
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 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 UPSC Commerce and Accountancy Syllabus?

To fetch good marks on the UPSC Mains paper, it is crucial to score well on the optional papers. Therefore, candidates who have opted for Commerce and Accountancy as their optional subject in the Mains must check the following tips and strategies to cover the UPSC Commerce and Accountancy syllabus efficiently.

  • Mind map the syllabus – Every candidate should first go through the complete commerce and accountancy optional syllabus and print those topics in mind. It will help them to avoid unnecessary topics and study efficiently.
  • Practice UPSC previous year question papers – They must go through the previous year’s question papers carefully as, a lot of time, the questions are repeated in different ways.
  • Revise and Practice – They need to revise the theory part of both paper 1 and paper 2, stick to the UPSC commerce and accountancy syllabus, and cover each topic. Additionally, it would be best if they practiced the diagrams and flowcharts properly.
  • Make comprehensive notes that are to the point, and ensure not to write long sentences.

Best Books for Commerce Optional UPSC

Below we have mentioned the best books for covering the UPSC commerce and accountancy syllabus.

Books for Paper 1 of Commerce and Accountancy Optional Syllabus:

  • Fundamentals of Corporate Accounting – J.R.Monga
  • Fundamentals of Management Accounting – Anthony & Welsch
  • Systematic Approach to Income Tax – Girish Ahuja
  • Financial Management – R. P. Rustagi
  • Indian Financial System – Y.Khan

Books for Paper 2 of UPSC Commerce and Accountancy Syllabus:

  • Organisation Theory & Behaviour – B.P Singh & T.N. Chabra
  • Human Resource Management – C.B Gupta
  • Industrial Relations in Indian Enterprises – R.S. Dwivedi
  • Dynamics of Industrial Relations – C.B. Mamoria, Satish Mamoria & S.V. Gankar
  • Industrial Relations – T.N. Chhabra & R.K. Suri

Other Optional Subjects Syllabus apart from UPSC Optional Commerce and Accountancy Syllabus are given below.

List of UPSC Optional Subjects Syllabus:
UPSC Maths Syllabus UPSC Economics Syllabus
UPSC Electrical Engineering Syllabus UPSC History Syllabus
UPSC Psychology Syllabus UPSC English Literature Syllabus
UPSC Law Syllabus UPSC Science and Technology Syllabus
UPSC Public Administration Syllabus UPSC Zoology Syllabus
Our Apps Playstore
SSC and Bank
Other Exams
GradeStack Learning Pvt. Ltd.Windsor IT Park, Tower - A, 2nd Floor, Sector 125, Noida, Uttar Pradesh 201303
Home Practice Test Series Premium