14 Page

Strategic document on
Commerce & Accountancy

By CA R.S. Agrawal

20/May/2022

Ranker’s Classes
8A/29, WEA, KAROL BAGH
Delhi 110005

9818464467

1
 Paper I( six subjects divided into two sections)
Section A (Accounting, Taxation & Auditing)
UPSC Subjects & Syllabus Comments/explanation
1. Financial Accounting
1. Accounting as a financial Information System; Impact of
behavioral sciences.
2. 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.
3. Accounting for Share Capital Transactions including Bonus
Shares, Right Shares, Employees Stock Option and Buy-Back
of Securities.
4. Preparation and Presentation of Company Final Accounts.
5. Amalgamation, Absorption and Reconstruction of
Companies.
2. Cost Accounting:
1. Nature and functions of Cost Accounting. Installation of Cost
Accounting System.
2. Cost Concepts related to Income Measurement, Profit
Planning, Cost Control and Decision Making.
3. Methods of costing: Job Costing, Process Costing, Activity
Based Costing.
4. 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.
5. Techniques of Cost Control and Cost Reduction: Budgeting a
Tool of Planning and Control. Standard Costing and Variance
Analysis.
6. Responsibility Accounting and Divisional Performance
Measurement.
3. Taxation:
1. Income Tax: Definitions; Basis of Charge; Incomes which do
not form Part of Total Income.
2. Simple problems of Computation of Income (of Individuals only)
under Various Heads, i.., Salaries, Income from Business or
Profession, Capital Gains, Income from other sources.
3. Income of other Persons included in Assessee’s Total
Income.
4. Set – Off and Carry Forward of Loss.
5. Deductions from Gross Total Income.
6. Salient Features/Provisions Related to VAT and Services Tax.

4. Auditing:
1. Company Audit; Audit related to Divisible Profits, Dividends.
2. Special investigations, Tax audit.
3. Audit of Banking, Insurance, Non-Profit Organisations and
Charitable Societies/Trusts/ Organisations

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 Paper I Section B
(Financial Management, Financial Institutions and Markets)
5. Financial Management:

1. Finance Function: Nature, Scope and Objectives of Financial

Management: Risk and Return Relationship.
2. Tools of Financial Analysis: Ratio Analysis, Funds-Flow and Cash-
Flow Statement.
3. Capital Budgeting Decisions: Process, Procedures and Appraisal
Methods. Risk and Uncertainty Analysis and Methods.
4. Cost of capital: Concept, Computation of Specific Costs and
Weighted Average Cost of Capital. CAPM as a Tool of
Determining Cost of Equity Capital.
5. 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.
6. Dividend Decisions and Valuation of Firm: Waltr’s Model, MM
Thesis, Gordan’s Model Lintner’s Model. Factors Affecting
Dividend Policy.
7. Working Capital Management: Planning of Working Capital.
Determinants of Working Capital. Components of Working
Capital Cash, Inventory and Receivables.
8. Corporate Restructuring with focus on Mergers and Acquisitions
(Financial aspects only)

6. Financial Markets and Institutions:

1. Indian Financial System: An Over view

2. Money Markets: Participants, Structure and Instruments.
Commercial Banks. Reforms in Banking sector. Monetary and
Credit Policy of RBI. RBI as a Regulator.
3. Capital Market: Primary and Secondary Market. Financial
Market Instruments and Innovative Debt Instruments; SEBI a
Regulator.
4. Financial Services: Mutual Funds, Venture Capital, Credit Rating
Agencies, Insurance and IRDA.

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 Structure/Trend of UPSC Questions in Commerce Paper I
Qn No. 2021 2020 2019 2018 2017 2016 Observations
1(a) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 These five short
(b) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 notes are asked
(c) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 from all four areas
(d) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 FA, CA, TAX, AUDIT
(e) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 evenly.
10 Marks Each

2(a) Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 Numerical questions

Numerical15 Numerical15 Numerical15 Numerical15 Theory15 Numerical15 are asked from all
(b)
three areas of FA, CA &
(c) Theory15 Theory15 Theory15 Theory15 Theory 15
Theory15 TAX evenly. Generally
15 to 20 marks each
3(a) Numerical20 Numerical20 Numerical20 Numerical25 Numerical15 Numerical20 question. Sometimes
25 to 30 Mark qns
(b) Theory15 Theory15 Theory15 Theory15 Theory15 Theory15 depending upon length
(c) Theory15 Theory15 Theory 15
Theory10 Numerical 20
Theory15 of question/solution.
Theory Qns are asked
4(a) Numerical20 Numerical20 Theory20 Numerical20 Theory15 Numerical20 from all four areas of
(b) Theory15 Theory15 Theory15 Theory20 Theory15 Numerical15 FA, CA, TAX and AUDIT
evenly. Generally10-15
(c) Theory15 Theory15 Theory15 Theory10 Numerical20 Theory15
marks each question.

Section B
5(a) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 Generally, 3-4 short
(b) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 notes are asked from
(c) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 FM.
Generally, 1-2 short
(d) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10
notes are asked from
(e) Theory10 Theory10 Theory10 Theory10 Theory10 Theory10 FIs 10 Marks each.

6(a) Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 Numerical questions

Theory15 Theory15 Numerical15 Numerical15 Theory15 Numerical15 are asked from FM only.
(b) Generally, 15 to 20 marks
(c) Theory15 Theory15 Theory15 Theory15 Theory 15
Theory15 each question. Rarely, at
times 25 to 30 Mark qns
depending upon length of
7(a) Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 Numerical20 question/solution.
(b) Numerical15 Numerical15 Numerical15 Numerical15 Theory15 Numerical15 Theory questions are
(c) Theory15 Theory15 Theory15 Numerical15 Theory 15
Theory15 asked from both FM(
2/3rdof the questions)&
FIs(1/3rdof the
8(a) Numerical20 Numerical20 Theory20 Theory20 Numerical20 Numerical20 Questions). Generally 15
(b) Theory15 Theory15 Theory15 Theory15 Theory15 Theory15 marks each question.

(c) Theory15 Theory15 Theory15 Numerical15 Theory15 Theory15

Green color: Numerical Questions

Orange Color: Theory questions
Number given in superscript signifies number of Marks that question carries.

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 Paper II( Four subjects divided into two sections)
Section A (Organisation Theory & Organisation Behaviour)
UPSC syllabus / Subject Comments/explanation
1. Organization Theory:
1. Nature and Concept of Organisation; External
Environment of Organizations Technological, Social,
Political, Economical and Legal. Impact of Information
Technology on Organizational Design and Structure.
2. Organizational Goals – Primary and Secondary goals, Single
and Multiple Goals; Management by Objectives.

3. Evolution of Organisation Theory: Classical, Neo-classical

and Systems Approach. Modern Concepts of Organisation
Theory:

4. 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.

5. Designing Organizational structures – Authority and

Control; Line and Staff Functions, Specialization and
Coordination.

6. Types of Organization Structure Functional. Matrix

Structure, Project Structure.

7. Nature and Basis of Power. Sources of Power, Power

Structure and Politics.

8. Managing Organizational Culture.

2. Organisation Behavior:
1. Meaning and Concept.

(Individual in organizations):
2. Personality, Theories and Determinants
3. Perception – Meaning and Process.
4. Motivation: Concepts, Theories and Applications.
5. Leadership Theories and Styles.
6. Quality of work Life (QWL): Meaning and its impact on
Performance, Ways of its Enhancement. Quality Circles (OC)
– meaning and their Importance
7. Management of Conflicts in Organizations.
8. Transactional Analysis.
9. Organizational Effectiveness,
10. Management of Change.

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 Paper II
Section B (Human Resource Management & Industrial Relations)
3. Human Resources Mgt.
1. Meaning, Nature and Scope of HRM.

2. Human Resource Planning, Job Analysis, Job

Description, Job Specification,

3. Recruitment Process, Selection Process, Orientation and

Placement,

4. Training and Development Process.

5. Performance Appraisal and 3600 Feed Back.

6. Salary and wage administration, Job Evaluation,

7. Employee welfare, Promotions, Transfers and

Separations.

4. Industrial Relations:
1. Meaning, Nature, Importance and Scope of IR,

2. 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.

3. Nature of Industrial Disputes: Strikes and Lockouts,

Causes of Disputes, Prevention and Settlement of
Disputes.

4. Worker’s Participation in Management: Philosophy

Rationale, Present Day Status and Future Prospects.

5. Adjudication and Collective Bargaining.

6. Industrial Relations in Public Enterprises,

7. Absenteeism and Labour Turnover in Indian Industries

and their Causes and Remedies.

8. ILO and its Functions.

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 Structure/Trend of UPSC questions in Paper II( All Theory)
Qn 2021 2020 2019 2018 2017 2016 Observations

Section A
1(a) 10 OT 10 OT 10 OT 10 OT 10 OT 10 OT These 5 short
notes are asked
(b) 10 OT 10 OT 10 OT 10 OT 10 OT 10 OT from both OT &
(c) OB evenly. 2-3
10 OB 10 OB 10 OB 10 OB 10 OT 10 OB short notes
(d) 10 OT 10 OT 10 OB 10 OB 10 OB 10 OB from OT & 2-3
or rest from OB.
(e) 10 OB 10 OB 10 OB 10 OT 10 OB 10 OB 10 Marks Each

2(a) 20 OT 20 OT 20 OT 20 OT 20 OT 20 OT Out of these 3

(b)
questions,
20 OB 20 OB 20 OT 20 OT 20 OT 20 OT around 2/3rd
(c) 10 OB 10 OB 10 OT 10 OT 10 OT 10 OT are asked from
OT and 1/3rd
3(a) from OB till
20 OT 20 OT 20 OT 20 OB 20 OB 20 OT
2017.
(b) 20 OT 20 OT 20 OB 20 OB 20 OB 20 OT
(c) Since 2018
10 OB 10 OB 10 OB 10 OB 10 OB 10 OT
OT: OB ratio
4(a) 20 OB 20 OB 20 OB 20 OB 20 OT 20 OB has been
around 60:40.
(b) 20 OT 20 OT 20 OB 20 OB 20 OT 20 OB
(c) 10 OT 10 OT 10 OB 10 OT 10 OT 10 OB
50/84 OT

Section B
5(a) 10 HRM 10 HRM 10 HRM 10 HRM 10 HRM 10 HRM These 5 short
notes are asked
(b) 10 IR 10 IR 10 HRM 10 HRM 10 HRM 10 HRM from both HRM
(c) & IRs evenly. 3-
10 HRM 10 HRM 10 IR 10 HRM 10 HRM 10 IR 4 short notes
(d) 10 HRM 10 HRM 10 HR/IR 10 IR 10 IR 10 IR from HRM & 1-2
or rest from IRs.
(e) 10 HRM 10 HRM 10 HRM 10 IR 10 IR 10 IR 10 Marks Each

6(a) 20 HRM 20 HRM 20 HRM 20 HRM 20 HRM 20 HRM

(b)
Out of these 3
20 IR 20 IR 20 IR 20 HRM 20 HRM 20 HRM questions,
(c) 10 IR 10 IR 10 IR 10 IR 10 HRM 10 HRM around 2/3rd
are asked from
7(a) 20 HRM 20 HRM 20 IR 20 HRM 20 IR 20 HRM HRM and 1/3rd
(b) from IRs.
20 HRM 20 HRM 20 HRM 20 IR 20 HRM 20 HRM
This ratio may
(c) 10 HRM 10 HRM 10 HRM 10 HRM 10 IR 10 HRM be 60:40 and
50:50 as well.
8(a) 20 HRM 20 HRM 20 HRM 20 IR 20 IR 20 IR Hence,
(b)
prepare
20 IR 20 IR 20 IR 20 IR 20 HRM 20 IR accordingly.
(c) 10 IR 10 IR 10 IR 10 HRM 10 HRM 10 IR
51/84 HRM
Green Cells: OT & HRM Orange Cells: OB & IRs
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Overall Structure of the question Papers( by Total Marks)
Paper I Paper II
 Accounts 40-60-70 OT 90-120
 Cost 50-60-70
 Tax 30-50 OB 70-100
 Audit 30-35 HRM 90-120
 FM 100-120-150
 IRs 70-100
 FIs 30-50
(out of 400)
(out of 400)

Numerical: 75 to 125 marks

Theory : 125 to 175 marks
(out of 250 marks answerability)

Type of questions asked:

1. Direct concept question. Write a short note on Expectancy theory of
motivation.
2. Analytical questions: three features
 Writing on positives and negatives of any concept and your final
view.
 Comparison among concepts.
 Past-present-future of the concept or institution or practice.
3. Numerical questions in paper I.
4. Application based questions in paper II (rarely).
5. Current affairs-based questions in both the papers (20-50 marks each
paper, occasionally)

Further, theory questions( both papers) may be classified in two broad

categories:

1. Explanatory: key terms in use: explain, elaborate, expound.

2. Critical analysis: key terms in use: examine, critically examine,
discuss, through light, evaluate, assess etc.

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Level of difficulty of questions- three levels: (out of 400)
 40% (Minimum 20 %) very easy and direct questions such as issue of shares, direct
question on accounting standards, theories etc. in case UPSC is positive about the
optional, even 40% -50% of the questions may be easy.
 50% to 60% standard questions with honors level answering requirement such as
numerical questions on computation of taxable income, computation of NPV,
preparation of final accounts, critical review questions on theory etc.
 15% to 20% Tough questions may be asked. Generally it happens in case there is very
good result with the optional ( 2-4 ranks in top 20). Generally, 30-50-mark tough
questions are asked covering short notes in both the papers. Here tough means:
unexpected concept, associated concept or theory, interpretation of current
development, out of syllabus things.

Good score in Commerce: strategy for the student

General guidelines:
Take care of tick marks
 Perfect conceptual and factual hold and writing practice of ‘triple tick mark’
items. You may go for additional source or Google search over the topic.
 Good hold over ‘double tick mark’ items. Writing practice and Google search
may not be done.
 Memory of key points (3 to 4) in case ‘single tick mark’ 'items.
 Be aware about core idea in case of items marked ‘see’.
 Certain concepts and topics are covered for sense of security or coverage
only, marked by ‘x’. Skip reading thereof.

It is not advisable to leave any topic completely. Compulsory short notes are
asked from all the topics, in theory only. Selective preparation can be made
from within topics as per tick marks mentioned above.

Making notes- is advisable for:

 better hold over facts,

 faster and relevant revision
 Saving revision time and reducing exam day pressure.
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Notes should be in synopsis form containing around 8-10% of the facts or key
ideas and points only.

How to make notes:

1. Mind map or flow-chart of facts or points.

2. Pictures may be jotted to remember facts. Acronyms may be written to
remember many facts.
3. Synopsis of concepts, features, significance, assumptions, merits, demerits,
examples: here following approach should be adopted:
 If para heading or point is easy that can be explained by you logically,
just write heading.
 In case heading is easy, but inside para there are many things, facts,
ideas prone to get missed from memory: write the key words with
heading of the para.
 If full para is important and highly factual, such as core propositions of
theory- a brief sentence should be noted.

Frequency of Revisions:

 One with classes

 One detailed revision before prelims, if time permits. Else revision of key
concepts or part of syllabus before prelims.
 One detailed revision after prelims. If detailed revision is done before
prelims, brief revision may suffice. Alongside this revision tests should be
written( one page or section tests)
 Final touch, within three to five day prior to exam. More emphasis on
theory, formulae, key concepts, thinker propositions, and legal provisions
with triple tick marks. Things to be revised are identified as the stage of
brief revision.

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Brief strategy for Paper I: (Target 170 -200)

1. Exact Conceptual clarity and prefect hold over Meanings, definitions,

assumptions, thoughts, core propositions, formulae.
2. Analytical understanding of concepts, theories, practices, and institutions.
Such as critical understanding of CVP analysis, ABC, BEP, SEBI Role, RBI Role.
3. Good hold/memory of facts. Three to five points each on Merits, time lines,
multiple ideas, limitations, demerits, critique, examples etc.
4. Practice of numerical questions- fast speed needed. Good speed not
sufficient. Possible through hold over concepts, treatments, formulae, flow of
calculations and frequent and challenging time bound answering practice.

How much numerical questions should be practiced?

 Must solve 20% of the questions given in study material in proper
format ( including easy, standard, difficult/exercise, illustration and
home work)
 Work out rest the 80 % in various alternate forms such as:
 Calculator based calculations and matching answer.
 Mind map of solution.
 Read question and move ahead if found easy to do.

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Brief Strategy for PAPER II (Target 160 - 190)

1. Exact Conceptual clarity and prefect hold over Meanings, definitions,

assumptions, thoughts, core propositions, formulae.
2. Analytical understanding of concepts, theories, practices, and institutions.
Such as comparative understanding of various decision making and goal
setting approaches; critical analysis of Taylor’s Scientific Management;
Weberian Bureaucracy; Methods of dispute resolutions and conflict
handling etc.
3. Good hold/memory of facts. Three to five points each on Merits, time lines,
multiple ideas, limitations, demerits, critique, examples etc. Why not
all/most the facts?
4. Ability to apply concepts to practice or link with current affairs. Such as
how ‘would you create a culture of honesty in an organization dented by
corruption’? How would you design organisation structure any newly
established bank?
5. Answer writing practice of past year questions and questions given at end
of every chapter. How much?
 Write full length answers of around 20 % questions.
 Work out rest the 80% in various alter forms such as
 Skeleton of the answer in writing.
 Mind map or contemplation of answer to questions
already covered or easy to answer.
 Full reading of question, moving ahead in case of easy to
do. Not exceeding 20% of all the questions.

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 Terms used in/with Questions by UPSC
`

(Meanings as per Law Lexicon)

 Discuss: To consider or examine by argument, comment etc. to talk over
or write about, to debate. To exchange or compare opinion. To expound
the various views held on any subject. To exchange views or information.
 Explain: To make plain or clear. To make known in detail; To explain
how to do something; To explain a process; to assign to meaning to.
 Elucidate: to through light on something by illustration and commentary
and sometimes by elaborate explanation.
 Expound: To give a methodical, detailed, scholarly explanation of
something usually scriptures, doctrines or philosophies.
 Interpret: To give the meaning of something by paraphrase by
transaction or by an explanation which often of a systematic and detailed
nature (sometimes involving one’s personal opinion and therefore
original)
 Elaborate: working out with great care and nicety of detail; executing
with great minuteness; to work out carefully or minutely; to develop to
perfection; to add details in writing speaking etc; giving additional or
fuller treatment.
 Comment: to write explanatory or critical notes upon a text; to make
remarks.
 Critical examine: judging with severity with inclination to find fault,
involving into skillful judgement or evaluation as to truth or merit.
 Examine: To formally, as to elicit facts or information; interrogate; to
inspect carefully or in detail; to investigate.
 Describe: To represent or give an account of in words such as describe a
picture. To represent by a figure, model, or picture.
 Delineate: to describe, portray, or set forth with accuracy or in detail.

Rankers Classes Page 13

 Books in English Medium for Commerce and Accountancy:

Paper I:
1. Financial Accounting: DK Goel or TS Grewal or SM Shukla(go for latest
edition with Companies Act 2013)
2. Cost Accounting: M.L. Agrawal. or Mittal Maheshwari, Porwal.
3. Income Tax: H.C.Mehrotra, or Girish Ahuja, Singhania.
4. Audit: any book matching syllabus of UPSC with latest companies act 2013
provisions such as Aruna Jha or Kamal Sharma.
5. Financial Management: R.P. Rustogy or Khan & Jain
6. Financial Markets and Institutions: Khan and Jain or L.M.Bhole + focus on
current affairs as per syllabus

Paper II
1. Organisation Theory and Behaviour: BP Singh & TN Chhabbra
2. HUMAN RESOURCE MANAGEMENT: CB Gupta
3. Industrial Relations: Memoria and Memoria or CS Venkataratnam

 Current affairs in Commerce: The Hindu: The Opportunities page

(Wednesday) and Business Page( 13 or 14 or 15th Page).
 No need to see Economic Time for commerce. It is too heavy and
unnecessary.

If above books are not available, one can go for other books containing UPSC
syllabus

One Stop Solution: Rankers Classes Study Material.

For Most Comprehensive, Qualitative, and focused Coverage:

Join online or face to face classes.

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