PAPER-2 Concerned Subject:-
Cost & Management Accounting,
Fundamentals of statistics and
150 Marks 150 Qns. 150 Minutes.
PAPER-I: GENERAL STUDIES AND MENTAL ABILITY
1. General Science.
2. Current Events of National and International Importance.
3. History of India and Indian National Movement. India and World Geography.
4. Indian Polity and Economy.
5. General Mental Ability.
6. Questions on General Science will cover General appreciation and understanding of science
including matters of every day observation and experience, as may be expected of a well
educated person who has not made a special study of any particular scientific discipline. In
current events, knowledge of significant national and international events will be tested. In
History of India, emphasis will be on broad general understanding of the subject in its social,
economic and political aspects. Questions on Indian National Movement will relate to the
nature and character of the nineteenth century resurgence, growth of nationalism and
attainment of independence. In Geography emphasis will be on geography of India. Questions
on the geography of India will relate to physical, social and economic geography of the country,
including the main features of the Indian agricultural and natural resources. Questions on Indian
Polity and Economy will test knowledge of the country’s political system and Constitution of
India, Panchayat Raj, Social Systems and economic developments in India. On general mental
ability, the candidates will be tested on reasoning and analytical abilities.
7. DISASTER MANAGEMENT (Source : CBSE Publications)
1. Concepts in disaster management and vulnerability profile of India / State of A.P.
2. Earth quakes / Cyclones / Tsunami / Floods / Drought – causes and effects.
3. Man made disasters - Prevention strategies.
4. Mitigation strategies / Mitigation measures.
PAPER –II: COMMERCE
UNIT-I: Introduction to Accounting:
Need for Accounting – definition, features, objectives, functions, systems and bases and scope
of accounting - Book keeping and Accounting - Branches of Accounting - Advantages and
limitations – Basic terminology used - Accounting concepts and conventions - Accounting
Process – Accounting cycle - Accounting equation.
Classification of accounts - Rules of double entry book keeping - Identification of financial
transactions - Journalizing – Posting to Ledgers - Balancing of Ledger Accounts.
UNIT-II: Subsidiary Books:
Sub Division of Journal: Preparation of Subsidiary Books including different types of cashbooks:
Simple cashbook, cashbook with cash and discount columns, cashbook with cash, discount and
bank columns, cashbook with cash and bank columns and petty cash book.
UNIT-III: Bank Reconciliation Statement: Need - Reasons for difference between cash book
and pass book balances - Problems on favorable and over draft balances - Ascertainment of
correct cash book balance.
UNIT-IV: Trial Balance, Final Accounts:
Trial Balance: Meaning, objectives, methods of preparation - Final Accounts: Meaning, features,
uses and preparation of Manufacturing, Trading Account, Profit & Loss Account and Balance
Sheet - Adjusting and Closing entries.
UNIT-V: Errors and their Rectification: Types of Errors - Rectification before and after the
preparation of final Accounts - Suspense Account - Effect of Errors on Profit.
UNIT-VI: Depreciation - Provisions and Reserves:
Depreciation: Meaning – Causes - Objects of providing for depreciation - Factors affecting
depreciation - Accounting Treatment - Methods of providing depreciation: Straight line method -
Diminishing Balance Method.
Provisions and Reserves: Reserve Fund – Different Types of Provisions and Reserves.
UNIT-VII: Accounts from Incomplete Records:
Single Entry: Features – books and accounts maintained - Recording of transactions -
Ascertainment of Profit (Statement of Affairs method only).
UNIT-VIII: Hire Purchase and Installment Purchase System:
Hire Purchase System: Features – Accounting Treatment in the Books of Hire Purchaser and
Hire Vendor - Default and Repossession.
Installment Purchase System: Difference between Hire purchase and Installment purchase
systems - Accounting Treatment in the books of Purchaser and Vendor.
UNIT-IX: Accounting of Non-Profit Organizations:
Non-Profit Entities: Features of non - profit entities – Accounting process - Preparation of
summaries -Receipts and Payments Account: Meaning and special features - Procedure for
preparation - Uses and limitations.
Income and Expenditure Account: Features - Procedure for preparation - Preparation of
B) COST & MANAGEMENT ACCOUNTING:
UNIT-X: Financial Statement Analysis:
Financial statement analysis: Need, Meaning, objectives, process - Methods and techniques of
analysis (Theory Only).
Cash flow Analysis (as per AS-3) (including simple practical problems).
UNIT-XI: Ratio Analysis:
Calculation of liquidity, solvency, profitability and turnover ratios - Interpretation of ratios
((including simple practical problems).
C) FUNDAMENTALS OF STATISTICS:
UNIT - XII: Measures of Central Tendency:
Definition, objectives and characteristics of measures of central tendency - Types of Averages:
Arithmetic Mean, Geometric Mean, Harmonic Mean, Median, Mode, Deciles, Percentiles,
Properties of averages and their applications.
UNIT - XIII: Measures of Dispersion and Skewness:
Dispersion: Meaning, Definitions, Properties – Types: Range, Quartile Deviation, Mean
Deviation, Standard Deviation, Coefficient of Variation.
Skewness and Normal Distribution.
Unit-XIV: Introduction to Auditing:
Auditing: Meaning – Definition – Evolution – Objectives - Importance.Types of audit: Based on
ownership (Proprietorship, Partnership, Companies, Trusts, Cooperative Societies, Government
Departments) - Based on time (Interim, Final, Continuous, Balance Sheet)- Based on objectives
(Independent, Financial, Internal, Cost, Tax, Government, Secretarial).
Unit-XV: Planning of Audit and Control:
Auditor: Qualifications and disqualifications – Qualities - Appointment and Reappointment –
Remuneration – Removal – Rights – Duties – Liabilities.
Audit planning: Engagement letter - Audit programme - Audit note book - Audit papers - Audit
work book - Audit contents - Audit markings – Internal check- Internal control (Sales –
Purchases - Fixed assets – Cash – Bank - Pay Roll) - Accounting controls and Sampling in