Commerce and Accountancy Optional Coaching

Among aspirants who have a strong foundation in higher education commerce, Commerce and Accounting is one of the most preferred optional subjects. The majority of the Commerce & Accountancy curriculum is static. This optional subject plays an instrumental role in aiding aspirants to learn about basic financial literacy, the economic evolution from the currency of the day to the digital currency of today, and how businesses work to create profits.

For candidates with a commerce background, Commerce & Accountancy is a popular Optional Subject because it is relatively easy to score well in, is not very competitive, and covers topics that are familiar to students who have studied B.Com, CA, etc.

However, relying too heavily on prior knowledge from these courses can be detrimental if the candidate is not adaptable enough to recognize the differences between academic and the UPSC Commerce & Accountancy optional.

The strategy for preparing for the Commerce & Accountancy Optional will vary depending on the candidate's background. For example, a B.Com graduate may need to focus on different areas than a CA.

General Points:

• Coaching: While classroom coaching is not mandatory, it can be beneficial for students who are pursuing graduation and wish to start their CSE preparation during graduation, or for candidates who plan to appear for the exam two years down the line. Coaching can help students to stay disciplined and utilize their time effectively.
• Study Material: It is advisable to purchase the latest study material from a popular coaching institute for the Commerce Optional. This is because graduation/CA books may not be sufficient or have the right perspective for the UPSC exam.
• Mock Tests: Writing mock tests is essential for preparing for the Commerce & Accountancy Optional, just as it is for General Studies. It is important to join a good test series and, if possible, attempt the tests at test centers.
• Presentation of Answers: The presentation of answers is crucial for scoring well. The writing style required for the UPSC exam is different from that used in graduation, CA, etc. It is important to use diagrams, headings, and short points to make answers more appealing and to complete the paper on time. It is also helpful to review answer sheets of toppers.
• Content of Answers: Candidates should strive to differentiate their answers from others by not just meeting the demands of the question, but also by writing something extra or unique.

Commerce and Accountancy Paper 1:

• Sources: The subject-wise sources for topics in Paper-1 should be a mix of coaching material and books that the candidate may have studied during graduation/CA Inter. This will help the candidate to feel confident that they are preparing comprehensively. However, it is important to focus on the relevant topics as identified by the syllabus and past year papers.
• Notes: It is advisable to make short notes of theory topics to highlight the key points for quick revision. For example, short one-page notes can be prepared for all the Accounting Standards that are usually asked.
• Practical Questions: It is important to practice past year papers and other questions thoroughly for the practical questions, as these have a high scoring potential. It is also important to maintain a balance between the theory and practical portions.
• UPSC Approach: It is important to understand that the UPSC approach to Commerce & Accountancy is different from that of CA. In the UPSC exam, the focus is on theoretical explanations of concepts, which requires conceptual clarity. This is not as important in CA, where candidates can sometimes get away with just memorizing formulas and assumptions.
• Final Answers: For practical questions in Paper-1, it is important to write conclusions/analyses of the final answers, even if this is not explicitly asked in the question. This is another difference between the UPSC exam and CA, graduation, etc., and UPSC requires greater theoretical/conceptual clarity from candidates.

Commerce and Accountancy Paper 2:

• New Subject: Paper-2 is a completely new subject for most candidates, so it is important to religiously cover the study material provided by a popular coaching institute. This material should be covered repeatedly to gain conceptual clarity and memorize key points and definitions.
• Additional Books: If time permits, candidates can also attempt a more comprehensive preparation by going through one popular book for each topic. However, this is not necessary.
• Alternative Approach: Another alternative is to supplement the notes of one coaching institute with the notes of another institute. This can help to ensure that all of the relevant topics are covered.
• Notes: It is essential to make short and crisp notes for quick revision.
• Real-life Examples: It is also advisable to supplement answers with real-life examples. To do this, candidates can skim through the news on the Economic Times app for a few minutes daily and bookmark relevant news articles. Within 2-3 months, candidates will have a large repository of examples that are different from other candidates.

Commerce & Accountancy is a good optional subject for commerce graduates, but it is important to recognize and respect the additional requirements of the UPSC exam over and above what candidates have covered during graduation.

Yes, Commerce and accountancy is considered to be a scoring Optional Subject for UPSC. This is because it is a relatively popular subject, which means that there is a lot of study material and resources available. Additionally, the subject matter is familiar to many candidates, as it is covered in undergraduate commerce courses and the CA exam.

However, it is important to note that scoring well in Commerce and accountancy requires a deep understanding of the subject matter and the ability to write clear and concise answers. Candidates should also be familiar with the UPSC's style of questioning and the need to provide theoretical explanations of concepts.

According to UPSC data, Commerce and accountancy is one of the most popular Optional Subjects, with over 20% of candidates choosing it in 2022. The average score for the subject was also relatively high, at 85.5 marks. Overall, Commerce & Accountancy is a good choice for candidates who are looking for a Scoring Optional subject. However, it is important to be prepared to put in the hard work required to succeed.

Here are some tips for scoring well in Commerce and Accountancy:

• Use good study materials and follow a structured preparation plan
• Focus on understanding the concepts rather than simply memorizing formulas and definitions
• Practice writing answers in the UPSC style
• Use real-life examples to support your arguments
• Get feedback on your answers from seniors and experts
• With careful preparation, candidates can achieve a high score in Commerce and accountancy and boost their chances of success in the UPSC exam

There are several benefits to choosing Commerce & Accountancy as an Optional Subject for UPSC:

• Relatively popular: Commerce & Accountancy is one of the most popular Optional Subjects, which means that there is a lot of study material and resources available. This can make it easier for candidates to prepare for the exam.
• Familiar subject matter: The subject matter of Commerce and accountancy is familiar to many candidates, as it is covered in undergraduate commerce courses and the CA exam. This can give candidates a head start in their preparation.
• Scoring potential: Commerce & Accountancy is considered to be a scoring Optional Subject. This is because there is a lot of scope for candidates to demonstrate their knowledge and understanding of the subject matter.
• Real-world relevance: Commerce and accountancy is a subject that is relevant to the real world. This can help candidates to write more insightful and engaging answers.
• Career prospects: A strong performance in Commerce and accountancy can be beneficial for candidates' career prospects in the government sector.
• A deeper understanding of the economy: Commerce & Accountancy provides candidates with a deep understanding of the economy, which can be beneficial for their careers in the government sector.
• Strong analytical and problem-solving skills: Commerce and accountancy require candidates to develop strong analytical and problem-solving skills. These skills are transferable to other areas of government work.
• Ability to communicate complex ideas clearly: Commerce and accountancy require candidates to communicate complex ideas clearly and concisely. This is an important skill for any government official.
• Competitive advantage: Candidates who choose Commerce and accountancy as Optional Subject have a competitive advantage over those who choose other subjects. This is because there is a limited number of candidates who choose Commerce and accountancy, and the subject is considered to be relatively scoring.

Overall, Commerce & Accountancy is a good choice for candidates who are looking for a scoring Optional Subject with real-world relevance and career benefits.

Paper I: 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 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 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 aTool of 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 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.

Paper II: 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; Organisational 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 Organisations. Mechanistic and Organic Structures.
• Designing Organisational 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 Organisational Design and Structure.
• Managing Organisational Culture.

2. Organisation Behaviour:

• Meaning and Concept; Individual in organisation: 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, Organisational 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° Feedback, 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.