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🇮🇳 UGC NET Commerce · subject
UGC NET Commerce Accounting and Auditing Syllabus
Every chapter and topic of Accounting and Auditing examined in UGC NET Commerce — 12 chapters, 37 topics, plus 60 flashcards written against it.
Accounting and Auditing syllabus — full chapter and topic list
Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Accounting and Auditing in UGC NET Commerce, not a summary of it.
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Basic Accounting Principles
1 topic- Concepts and Postulates
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Partnership Accounts
5 topics- Admission
- Retirement
- Death
- Dissolution
- Insolvency of Partnership Firms
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Corporate Accounting
3 topics- Issue, Forfeiture and Reissue of Shares
- Liquidation of Companies
- Acquisition, Merger, Amalgamation and Reconstruction of Companies
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Holding Company Accounts
1 topic- Overview
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Cost and Management Accounting
10 topics- Marginal Costing and Break-even Analysis
- Standard Costing
- Budgetary Control
- Process Costing
- Activity Based Costing (ABC)
- Costing for Decision-making
- Life Cycle Costing
- Target Costing
- Kaizen Costing
- JIT
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Financial Statements Analysis
3 topics- Ratio Analysis
- Funds Flow Analysis
- Cash Flow Analysis
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Human Resources Accounting
1 topic- Overview
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Inflation Accounting
1 topic- Overview
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Environmental Accounting
1 topic- Overview
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Indian Accounting Standards and IFRS
1 topic- Overview
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Auditing
5 topics- Independent Financial Audit
- Vouching
- Verification and Valuation of Assets and Liabilities
- Audit of Financial Statements and Audit Report
- Cost Audit
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Recent Trends in Auditing
5 topics- Management Audit
- Energy Audit
- Environment Audit
- Systems Audit
- Safety Audit
Accounting and Auditing flashcards for UGC NET Commerce
20 of 60 cards from the Accounting and Auditing deck — real questions with worked answers.
What is an accounting postulate, and how does it differ from an accounting concept?
A postulate is a basic, self-evident assumption underlying accounting (e.g., going concern, money measurement), accepted without proof. A concept is a generally accepted rule/principle (e.g., matching, accrual) derived from those postulates to guide recording and reporting.
State the going concern assumption and one of its practical implications.
It assumes a business will continue operating for the foreseeable future. Implication: assets are recorded at cost and depreciated over useful life rather than at liquidation/realisable value.
On admission of a partner, what is the 'sacrificing ratio' and how is it calculated?
It is the share of profit old partners give up for the new partner. Sacrificing Ratio = Old Ratio - New Ratio. It is used to distribute the goodwill brought in by the incoming partner.
How is goodwill treated when a new partner does NOT bring his share of goodwill in cash (premium method not possible)?
The new partner's current/capital account is debited with his share of goodwill, and old partners' capital accounts are credited in their sacrificing ratio.
What is the 'gaining ratio' on retirement/death of a partner, and how is it computed?
It is the share of profit acquired by continuing partners from the outgoing partner. Gaining Ratio = New Ratio - Old Ratio. Continuing partners compensate the outgoing partner for goodwill in this ratio.
On the death of a partner, how is the deceased partner's share of profit up to the date of death usually determined?
On the basis of time or turnover (sales): estimated by the previous year's profit or average profit proportionately for the period from the last balance sheet date to the date of death, credited to the deceased partner's capital/executor's account.
What is the order of payment under Garner v. Murray rule when a partner is insolvent on dissolution?
The deficiency of the insolvent partner's capital is borne by solvent partners in the ratio of their capitals standing just before dissolution (last agreed capitals), not in the profit-sharing ratio.
In dissolution of a firm, what is a Realisation Account used for?
It is opened to record the sale of assets and payment of liabilities, closing all asset and liability accounts; the resulting profit or loss on realisation is transferred to partners' capital accounts in their profit-sharing ratio.
State the order of payment of liabilities on dissolution of a partnership firm under the Indian Partnership Act, 1932.
(1) Outside creditors/third-party debts; (2) partner's loan/advances to the firm; (3) partners' capital; (4) any surplus to partners in profit-sharing ratio.
What is share forfeiture, and what happens to amounts already received on forfeited shares?
Forfeiture is cancellation of shares for non-payment of calls. Amounts already received are not refunded; they are transferred to a Share Forfeiture Account (capital reserve nature pending reissue).
On reissue of forfeited shares at a discount, what is the maximum permissible discount?
The discount on reissue cannot exceed the amount forfeited (already received) on those shares; any balance left in the Share Forfeiture Account after reissue is transferred to Capital Reserve.
Distinguish between shares issued at par, at premium, and at discount.
At par: issue price = face value. At premium: issue price > face value (excess credited to Securities Premium). At discount: issue price < face value (now generally prohibited under the Companies Act, 2013 except sweat equity).
In liquidation of a company, what does the 'Statement of Affairs' show?
It shows the estimated realisable value of assets and the amounts expected to be available for various classes of creditors and contributories, used to assess the financial position at the commencement of winding up.
State the order of priority of payments in the winding up of a company.
(1) Secured creditors (over their security); (2) liquidation costs/liquidator's remuneration; (3) preferential creditors; (4) unsecured creditors; (5) preference shareholders; (6) equity shareholders.
What are 'preferential creditors' in company liquidation?
Creditors paid in priority over unsecured creditors, such as government taxes, employees' wages/salaries (within prescribed limits), and contributions to provident/pension funds, as specified under the Companies Act.
Distinguish between amalgamation in the nature of merger and in the nature of purchase (AS 14).
Merger: all assets/liabilities transferred, ≥90% shareholders become shareholders of transferee, consideration in equity shares, same business continued, book values recorded (pooling of interests). Purchase: any amalgamation not meeting all merger conditions; assets/liabilities recorded at fair values (purchase method) with goodwill/capital reserve.
Under AS 14, how is 'purchase consideration' defined?
It is the aggregate of shares and other securities issued and payment made in cash or other assets by the transferee company to the shareholders (not creditors) of the transferor company.
What is the difference between absorption and external reconstruction of companies?
Absorption: an existing company takes over another existing company (the transferor is wound up). External reconstruction: a new company is formed to take over the business of an existing (often loss-making) company which is then liquidated.
What is the fundamental aim of cost accounting (overview)?
To ascertain, record, classify and control costs of products/services, aid in price fixation, and provide data for managerial decision-making and cost reduction.
Define marginal cost.
Marginal cost is the additional cost of producing one more unit of output, i.e., the change in total cost from a one-unit change in volume; in practice it equals total variable cost per unit.
Planning Accounting and Auditing for UGC NET Commerce
Accounting and Auditing is about 15% of the UGC NET Commerce syllabus by topic count — 37 of 255 topics, spread over 12 chapters. At roughly 45 minutes per topic plus 12 minutes per sub-topic, a first pass runs to about 30 hours.
The heaviest chapters are Cost and Management Accounting (10 topics), Partnership Accounts (5 topics), Auditing (5 topics) . Front-load those while your energy is high; the short chapters are better revision filler later.
Work top-down: read the chapter, then tick topics off individually rather than marking the whole chapter done. Sub-topics are where silent gaps hide.
Accounting and Auditing (UGC NET Commerce) FAQ
What is in the UGC NET Commerce Accounting and Auditing syllabus?
Accounting and Auditing is split into 12 chapters — Basic Accounting Principles, Partnership Accounts, Corporate Accounting, Holding Company Accounts, Cost and Management Accounting and Financial Statements Analysis, and 6 more, containing 37 topics and 0 sub-topics in total.
How many chapters are there in Accounting and Auditing for UGC NET Commerce?
12 chapters. Accounting and Auditing accounts for about 15% of the topics in the whole UGC NET Commerce syllabus (37 of 255).
How long should I spend on Accounting and Auditing for UGC NET Commerce?
Budget around 30 hours for a first pass through Accounting and Auditing — about 45 minutes per topic plus 12 minutes per sub-topic across its 37 topics. Add revision cycles on top.
Are there flashcards for UGC NET Commerce Accounting and Auditing?
Yes — a 60-card Accounting and Auditing deck. Sample cards are printed on this page, and the full deck is free in the Examius app with spaced repetition scheduling.