AP PGCET 2023 Syllabus Commerce

TEST NAME: 201 COMMERCE
Fundamentals of Accounting
Concept – Definition – Objectives - Need for Accounting- Accounting Cycle- Book Keeping and
Accounting–Accounting Concepts and Conventions – Classification of Accounts and its rules –
Advantages – Limitations – Journal entry principles – Ledger preparation. Types of Subsidiary
Books – Cash Book, Three-column Cash Book, Petty cash Book. Preparation of Trial balance –
Types of Accounting Errors. Need for Bank Reconciliation – Reasons for difference between
Cash Book and Pass Book Balances- Preparation of Bank Reconciliation Statement. Preparation
of Final Accounts: Trading account – Profit and Loss account – Balance Sheet – Final Accounts
with adjustments. Meaning of Depreciation – Methods of Depreciation- Provision Vs. Reserve –
Preparation of Bad debts Account – Provision for Bad and doubtful debts – Provision for
Discount on Debtors – Provision for discount on creditors – Repairs and Renewals Reserve A/c.
Meaning of Bill –Features of bill – Parties in the Bill – Discounting of Bill – Renewal of Bill –
Entries in the books of Drawer and Drawee. Consignment – Features – Proforma invoice –
Account sales – Del-credre Commission – Accounting treatment in the books of consigner and
consignee – Valuation of Closing Stock – Normal and Abnormal losses - Joint venture –
Features – Differences between Joint-venture and consignment – Tools and Techniques of
Financial Accounting Analysis : Common Size Balanace sheet – Comparative Balance Sheet -
Construction Contracts – Revenue Recognition - Accounting for Fixed assets. Effects of changes
in foreign exchange rates – Accounting for government grants – Accounting for Amalgamation.
Employee benefits – Borrowing costs – Indian Accounting Standards.
Cost Accounting
Cost Concepts – Definitions - Classification of Costs - Distinguish between Financial
Accounting, Cost Accounting and Management Accounting – Preparation of Cost Sheet –
Advantages - Limitations. Elements of Cost :Materials: Components of Material Cost - Material
Control – Calculation of Material Cost per Unit – Materials Management Techniques :ABC
technique – FIFO, LIFO, Weighted Average, Base stock methods. Labour: Elements of Labour
Cost -Calculation of Cost per Labour Hour/ Head - Control of labor costs – Time Keeping and
Time Booking – Idle time –Methods of Remuneration – Labour Incentives Schemes –
Overheads: Allocation and Apportionment of Overheads – Machine Hour Rate. Job Costing :
Advantages – applications – Process costing – treatment of normal and abnormal process losses
– Preparation of Process Cost Accounts – Treatment of Waste and Scrap, Joint Products and
byproducts. Marginal Costing – Standard costing – Variance Analysis : Materials – Labour –
Overheads Techniques and Methods of Cost Accounting.
Management Accounting
Concepts – Definitions – Need and Significance of Management Accounting– Management
Reports – Techniques of Management Accounting – Methods of Management Accounting -
Concept of fund: Preparation of Funds flow statement -. Uses and limitations of funds flow
analysis. Concept of cash flow – Preparation of Cash Flow statement – Uses and limitations of
Cash flow analysis. Calculation of Break-even point – Uses and limitations – Margin of safety –
Make/Buy Decision – Lease/own Decision.

Business Economics

Meaning and Definitions of Business Economics – Nature and Scopeof Business Economics-
Micro and Macro Economics and their differences. Meaning and Definition of Demand –
Determinants of Demand – Demand function – Law of demand- Demand Curve – Exceptions to
Law of Demand. Meaning and Definition of Elasticity of Demand – Types of Elasticity of
Demand – Measurements of Price elasticity of demand – Total outlay Method – Point Method –
Arc Method. Classification of Costs – Total - Average – Marginal and Cost function – Long-run
– Short-run – Total Revenue – Average revenue – Marginal Revenue. Type of Costs – Fixed
Cost – Semi-variable Cost – Variable Cost– Cost Behavior. Techniques of Maximization of
output, Minimization of costs and Maximization of profit – Scale of production – Economies and
Dis-economies of Scale – Costs of Production – Cobb-Douglas Production Function. Concepts
of Economic liberalization, Privatization, Globalization –WTO Objectives Agreements –
Functions – Trade cycles – Meaning – Phases – Benefits of International Trade – Balance of
Trade and Balance of payments.
Business Organisation
Concepts of Business, Trade, Industry and Commerce – Features of Business –Types of
Business Organisations –Trade Classification – Aids to Trade – Industry – Classification –
Relationship of Trade, Industry and Commerce. Functions of Business and their relationship –
Factors influencing the choice of suitable form of organization – Meaning of Entrepreneurship –
Characteristics of a good Entrepreneur – Types – Functions of Entrepreneurship. Sole
Proprietorship – Meaning – Characteristics – Advantages and Disadvantages – Partnership –
Meaning – Characteristics- Kinds of partners – Advantages and Disadvantages – Partnership
Deed – Hindu-undivided Family – Cooperative Societies. Joint Stock Company – Meaning –
Characteristics –Advantages – Kinds of Companies - Differences between Private Ltd and
Public Ltd Companies. Preparation of important Documents for incorporation of Company –
Memorandum of Association – Articles of Association – Differences Between Memorandum of
Association and Articles of Association - Prospectus and its contents - .
Business Law
Meaning and Definition of Contract-Essential elements of valid Contract –Valid, Void and
Voidable Contracts – Indian Contract Act, 1872. Definition of Valid Offer, Acceptance and
Consideration –Essential elements of a Valid Offer, Acceptance and Consideration. Rules
regarding to Minors contracts – Rules relating to contingent contracts – Different modes of
discharge of contracts-Rules relating to remedies to breach of contract. Contract of Sale – Sale
and agreement to sell – Implied conditions and warranties – Rights of unpaid vendor. Cyber Law
and Contract Procedures – Digital Signature – Safety Mechanisms – Employee Compensation
Act – Consumer Protection Act.

Banking Theory & Practice
Meaning – Definitions of Bank – Functions of Banks -Kinds of Banks – Central Banking Vs.
Commercial Banking. Unit Banking, Branch Banking, Investment Banking- Innovations in
banking – E-Banking – Online and Offshore Banking, Internet Banking – Anywhere Banking –
ATMs – RTGS. Indigenous Banking – Cooperative Banks, Regional Rural banks, SIDBI,
NABARD – EXIM Bank. Meaning and Definition of Banker and customer – Types of
Customers – General Relationship and Special Relationship between Banker and Customer –
KYC Norms. Concepts – Duties & Responsibilities of Collecting Banker – Holder for Value –
Holder in Due Course – Statutory Protection to Collecting Banker – Responsibilities of Paying

Banker – Payment Gateways – Role of IT in Banking – Role of Banking in Financial Inclusion
and Sustainable Development.
E-Commerce
Features of Electronic Commerce – Models – Types of e-Commerce - Distinction between e-
Commerce and e-Business – Types of Business Models: B2B, B2C, C2C – Benefits and
Limitations of e-Commerce – Applications. Integration and e-Business suits – ERP, e-SCM, e-
CRM – Methods and benefits of e-Payment Systems –e-Marketing – Applications and issues.
ETourism – e-Recruitment – e- Real Estate – e-Stock Market – e-Music/Movies – e-Publishing
and e-Books. Process – Methods – e-Content development and Deliveries – Major technologies
used in e-Education – Online Testing – Methods – Future Trends. Ticketing – Mee-Seva;
Government and Consumer Services – e-Retailing – e-Groceries – Security challenges – Case
Studies.
Auditing and Corporate Taxation
Meaning – Objectives – Importance of Auditing – Auditing as a Vigil Mechanism – Role of
Auditor in checking corporate frauds. Based on Ownership and time – Independent, Financial,
Internal, Cost, Tax, Government, Secretarial audits. Steps to be taken at the commencement of a
new audit – Audit programme – Audit note book – Internal check, internal audit and internal
control. Vouching of cash and trading transactions – Investigation, Auditing vs. Investigation.
Auditor’s Qualifications – Appointment and Reappointment – Rights, duties, liabilities and
disqualifications – Audit report: Contents – Preparation – Relevant Provisions of Companies
Act, 2013. Income from Business or Profession, Tax Provisions for certain types of businesses.
Capital Gains, Income from Other Sources – Tax Provisions for Off shore and Special Tax
Zones. Computation of Gross Total Income – Deductions – Carry-forward and set-off of losses
– Minimum Alternative Tax (MAT). Procedure for Filing Returns, e-Filing, Assessment,
Reassessment and Settlement of Cases, Special Procedure for Assessment of Search Cases.
Powers and Duties – Appeals and Revisions – Tax Administration – Collection of Tax at Source
– Advance payment of Tax – Recovery and Refund of Tax – Penalties, Offences and
Prosecution.
Business Environment
Business Environment – Meaning – Macro and Micro Dimensions of Business Environment –
Economic – Political – Social – Technological – Legal – Ecological – Cultural – Demographic –
Changing Scenario and implications – Indian Perspective – Global perspective – Impact of
Liberalisation, Privatisation and Globalisation on Business Growth and expansion. Meaning of
Economic growth – Factors Influencing Development – Balanced Regional Development.
Rostow’s stages of economic development – Meaning – Types of plans – Main objects of
planning in India – NITI Ayog and National Development Council – Five year plans. Economic
Reforms and New Economic Policy – New Industrial Policy – Competition Law – Fiscal Policy
– Objectives and Limitations – Union budget – Structure and importance of Union budget –
Monetary policy and RBI. Concept of Social Justice – Schemes – Political Stability – Leal
Changes.
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