GUJARAT UNIVERSITY

SEMESTER : 05 (COMMERCE)(2019-2020)
SYLLABUS FOR UG B. COM ALL SEMESTERS ECONOMICS
NEW SYLLABUS FOR THE SEMESTER – 03 (CORE)
COMMERCE
PAPER -105( CORE)
ECONOMICS (PROBLEMS OF INDIAN ECONOMY -01)
1. CONCEPT OF PLANNING - STRATEGY OF PLANNING IN INDIA – ACHIEVEMENTS AND
LIMITATIONS OF PLANNING – LESSONS OF PLANNING IN INDIA
2. ECONOMIC REFORMS IN INDIA – INDUSTRIAL AND AGRICULTURAL POLICIES IN
INDIA – TECHNOLOGICAL POLICY IN INDIA
3. CONSTITUTIONAL PROVISIONS OF FEDERAL FINANCE – ISSUES IN CENTRAL-STATE
FINANCE RELATIONS - LAST FINANCE COMMISSION’S REPORT
4. PROBLEM OF PRICE-RISE IN INDIA – CAUSES – EFFECTS – REMEDIES

6
 GUJARAT UNIVERSITY
SEMESTER : 06(COMMERCE) (2019-2020)
SYLLABUS FOR UG B. COM ALL SEMESTERS ECONOMICS
NEW SYLLABUS FOR THE SEMESTER – 06 (CORE)
ECONOMICS (PROBLEMS OF INDIAN ECONOMY (02)
PAPER -106 (CORE)

1. QUANTUM, COMPOSITION AND DIRECTION OF FOREIGN TRADE – TRADE POLICIES –

EXPORT PROMOTION POLICY – IMPORT SUBSTITUTION POLICY
2. WORKING OF COMMERCIAL BANKS, THEIR PROBLEMS AND PRIVATE BANKS
3. OBJECTIVES AND INSTRUMENTS OF MONETARY POLICY OF RESERVE BANK OF INDIA
AND IT’S EVALUATION
4. CHARACTERISTICS OF INDIAN TAX STRUCTURE – LIMITATIONS AND TAX REFORMS –
PROBLEM OF BLACK MONEY AND DEMONATISATION

7
 To be effective from Year 2017‐2018 

New Syllabus of Gujarat University for B. Com. Semester ‐ VI 
CC 310         STATISTICS – VI     
Unit 1 : Testing of Hypothesis & Large Sample Test (25%)
Idea of Parameter and Statistic, Meaning of Statistical Hypothesis and its types, Standard
error of statistics and its uses in testing of Hypothesis, Type-I and Type-II errors, Power of
the test, Level of significance and Level of confidence, Critical region , One tailed test and
two tailed test (Theoretical explanation only), Test of significance for mean, Test for
difference between two means, Test for proportion of an Attribute, Test for difference of
two proportions and sums related to standard error and above four tests only.
Unit 2 : Decision Theory (25%)
Meaning and importance of Decision theory, components of decision theory, different
methods of taking decision, Maxi-Min Principle, Maxi-Max Principle, Laplace’s Principle,
Horwitz’s Rule, EMV (Expected Monetary Value), EPPI and EVPI and sums related to
above all.
Unit 3 : Game Theory (25%)
Meaning of game, two person zero sum game and its assumptions, Strategy and Pay-off
matrix for two person zero sum game, saddle point, pure strategy, value of the game, mixed
strategy, Dominance principle for solving the game without saddle point, reduction of m x
n pay off matrix into 2 x 2 matrix using dominance principle and solving the game, simple
sums of game theory problem with saddle point and without saddle point using dominance
principle only.
Unit 4 : Matrix Algebra (25%)
Definition of matrix and different types of matrices, addition, subtraction and
multiplication of matrices, determinant of square matrix (upto order of 3 x 3), Adjoint
matrix, Inverse matrix of a square matrix (upto order 3 x 3), Solution of linear equations
(Upto 3 Variables) with the help of inverse matrix and related examples.
 

Reference Books:
1. H.A.Taha, Operations. Research, Macmillan Publishing Co. Inc.
2. Vohra N.D, Quantitative Techniques in Management Tata McGraw Hill, New Delhi.
3. J.K.Sharma : O.R. Theory and Applications, Macmillan India Ltd.
4. Anderson, Sweeney, Williams, An Introduction to Management Science Quantitative
Approch to Decision Making, Cengage Learning India Pvt. Ltd. New Delhi.
5. Barry Render, Ralph M. Stair , Michael E. Hanna, Quantitative Analysis for Management,
Pearson Education(Singapore) Pte. Ltd.
 To be effective from Year 2017‐2018 

New Syllabus of Gujarat University for B. Com. Semester – VI 
CE 303 B Advanced Statistics IX
HOURS: 3/WEEK CREDIT: 3 EXAM HRS: 3
1. Demand Analysis & Monopoly & Duopoly Problems: [25%]
Demand and supply function, Market equilibrium, effect of taxation and subsidy, marginal
and average, revenue & cost function, Discussion of monopoly problems-classical duopoly
problems (idea only), Simple examples of monopoly under perfect competition, Difference
between monopoly & duopoly problems
2. Partial Derivatives and its applications: [25%]
Definition of partial derivative involving two variables up to second order, Homogeneous
functions, Statement of Euler’s theorem (without proof) and its application to homogeneous
function, Application of partial derivative to the problems related to constrained optimization
problems, (Cost function and Utility function).
3. Mathematics for Finance: [25%]
Types of Interest, Nominal and Effective rates of Interest, Simple, Compound and
continuous discounting, Depreciation, simple examples only Various types of Annuities,
Sinking fund and simple examples related to these topics.
4. Curve Fitting: [25%]
Meaning and definition of least square principle, Fitting of linear, quadratic and exponential
curves like (i) y = abx (ii) y = aebx (iii) y = axb etc. and simple examples based on it.

Reference Books:
1. J. K. Sharma, Mathematics for Business and Economics, Asian Books Private Ltd.
2. S. C. Gupta, V. K. Kapoor, Fundamentals of Applied Statistics, Sultan Chand & sons,
New Delhi.
3. David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Statistics For Business
and Economics, South-Western Cengage Learning India Pvt. Ltd. New Delhi.
4. S.C. Gupta: “Fundamentals of Mathematica Statistics” S. Chand, New Delhi.
5. R. G. D. Allen, Mathematical Analysis for Ecomomists, Macmillan, New,York.
 To be effective from Year 2017‐2018 

New Syllabus of Gujarat University for B. Com. Semester – VI 
CE 304 B Statistics X

HOURS: 3/WEEK CREDIT: 3 EXAM HRS: 3

Objective: Student supposed to apply their theoretical knowledge to identify, analyze and
solve any real life problem.
• A live project work using either primary data or secondary data should be undertaken.
(Survey based project is preferred). The topics for the project are decided by the
internal faculty by keeping the view that student should get an exposure to the
techniques of data collection methods, statistical analysis, presenting the data and to
derive proper conclusions related to the topic assignee to them in the project.
• Students can work in team of two or more. At the end, student should make a
presentation and the submission of their findings of the project undertaken in
dissertation form.
• For the internal marks are assigned by the internal faculty to the students on their
regular follow ups, progress report and interest in the topic. The faculty is responsible
to justify the marks.
• The external marks are given on the basis of presentation of the project by the students
against internal and external faculties (an average of the marks assigned by both the
faculties should be considered). The project dissertation carries 60% of marks and
presentation carries remaining 40% of marks.
 
 GUJARAT UNIVERSITY
T.Y.B.Com. – Semester : V
Sub : Business Laws – I
Course No : CC 303
Unit – 1 Indian Contract Act - 1872
(1) Definition and Essentials of Contract (2) Types Of Contract (3) Competent
Party (4) Free Consent
Unit – 2 Indian Contract Act - 1872
(1) Consideration (2) Performance of Contract (3) Discharge of Contract &
Rules for Compensation (4) Contingent Contract & Quasi Contract
Unit – 3 Indirect Taxes
Central Excise Act - Customs Act : - Definition & Types
Unit - 4 The Sale of Goods Act – 1930
(1) Definition : Sale & Agreement to Sell – Types of Goods (2) Conditions &
Warranties (3) Sale by Non-owners (4) Unpaid seller
Reference Books :
(1) law of Contract and Specific Relief – By : Avatar Singh
Published by : Eastern Book Company
(2) Elements of Mercantile Laws – By : N.D. Kapoor
Published by : Sultan Chand & Sons

GUJARAT UNIVERSITY
T.Y.B.Com. – Semester : VI
Sub : Business Laws – II
Course No : CC 308
Unit – 1 Special Contract
(1) Indemnity & Guarantee (2) Bailment & Pledge (3) Law of Agency :
Meaning , Modes of creating Agency , Types of Agent , Personal liability of
Agent and Termination of Agency
Unit – 2 Indian Companies Act – 1956
(1) Definition and Characteristics (2) Private Company & Public Company (3)
Memorandum of Association (4) Articles of Association (5) Prospectus (6)
Directors : Qualifications , Disqualifications & Legal Position
Unit – 3 Consumer Protection Act - 1986
(1) Definition (2) Consumer & Right of Consumer (3) Consumer Protection
Councils (4) Redressal Agencies
Unit - 4 Negotiable Instruments Act – 1881
(1) Meaning , Characteristics & Presumptions of Negotiable Instruments (2)
Promissory Note (3) Bill of Exchange & Cheque (4) Holder & Holder in due
course (5) Endorsements & Its Types
Reference Books :
(1) law of Contract Specific Relief – By : Avatar Singh
Published by : Eastern Book Company
(2) Elements of Mercantile Laws – By : N.D. Kapoor
Published by : Sultan Chand & Sons
(3) Introduction to Company Law - By : Avatar Singh
Published by : Eastern Book Company
 Gujarat University
B. Com. Programme

SEMESTER-I
COMMERCIAL COMMUNICATION-I

(With Effect from Academic Year 2017-2018)

UNIT- ONE
Understanding Communication

1. Communication: Introduction and Definitions

2. Objectives of Communication: (a) Information (b) Knowledge (c) Advice
(d) Counselling (e) Motivation (f) Request (g) Complaint (h) Warning
3. Process of Communication
4. Feedback: Meaning and Types of Feedback
5. Communication through Listening: Difference between Listening &
Hearing and Importance of Listening
6. Types of Listening: (a) Casual Listening (b) Passive Listening (c)
Selective Listening (d) Active Listening (e) Intensive Listening

UNIT - TWO
E- Communication

1. E-communication: Meaning and Importance

2. E-communication: Various Forms
3. E-communication: Advantages and Limitations
4. E- commerce
5. E- banking
6. E- meetings: Advantages and Limitations
7. E- governance

Page 1 of 20
 UNIT- THREE
Communication for Employment

1. Guidelines for drafting an effective Job Application

2. Techniques for writing an effective Resume/CV
3. Drafting Job Application
4. Drafting Resume/CV
5. Tips for facing Interview

UNIT- FOUR
(A) Precis Writing

(B) Vocabulary
Frequently Confused Pairs of Words (*List is attached)

*List of Frequently Confused Pairs of Words

1. Aboard/Abroad 26. Fare/Fair

2. Accept/Except 27. Foreword/Forward
3. Access/Excess 28. Heal/Heel
4. Addition/Edition 29. Hoard/Horde
5. Advice/ Advise 30. Industrial/Industrious
6. Affect/Effect 31. Judicial/Judicious
7. Allusion / Illusion 32. Lessen/Lesson
8. Appraise/Apprise 33. Marry/Merry
9. Bail/Bale 34. Minor/Miner
10. Beside/Besides 35. Minute/Minutes
11. Boast/Boost 36. Official/ Officious
12. Carton/Cartoon 37. Pail/Pale
13. Caste /Cast 38. Piece /Peace
14. Check/Cheque 39. Principal/Principle
15. Cite/Site 40. Role/Roll
16. Coast/Cost 41. Sever/Severe
17. Complement/Compliment 42. Slay /Sleigh
18. Defer/Differ 43. Sole/Soul
19. Descent/Dissent 44. Stationary/Stationery
20. Die /Dye 45. Suit/Suite
21. Draft/Draught 46. Tail/Tale
22. Dual/Duel 47. Teem/Team
23. Elicit/Illicit 48. Vacation/Vocation
24. Eligible/Illegible 49. Way/Weigh
25. Facilitate/Felicitate 50. Weather/Whether

Page 2 of 20
 Gujarat University
B. Com. Programme

Structure of Question Paper

SEMESTER-I

COMMERCIAL COMMUNICATION-I

(With Effect from Academic Year 2017-2018)

Q-1. Essay Type Question (From Unit-1) 14

(OR)
Essay Type Question (From Unit-1)

Q-2. Short notes on any TWO: (Out of Four) (From Unit – 2) 14

Q-3. Essay Type Question (From Unit-3) 14

(OR)
Essay Type Question (From Unit-3)

Q-4 (A) Precis Writing (From Unit-4-A) 8

(B) Re-write the sentences using correct options: 6

(Six Blanks from Vocabulary of Unit-4-B)

Q- 5. Do as directed: (From Unit-1 to 4) 14

(A) Choose the correct option: (Four MCQs)
(B) State whether the following statements are TRUE or FALSE:
(Five sentences)
(C) Match the following: (Five items)

Page 3 of 20
 Gujarat University
B. Com. Programme

SEMESTER-II

COMMERCIAL COMMUNICATION-II

(With Effect from Academic Year 2017-2018)

UNIT- ONE
Forms of Communication

1. Forms of Communication: Verbal and Non-verbal

2. Difference between Oral and Written Communication
3. Oral Communication: Advantages and Disadvantages (Limitations)
4. Written Communication: Advantages and Disadvantages (Limitations)
5. Non-verbal Communication: Advantages and Disadvantages (Limitations)

UNIT- TWO
Basics of Business Letter Writing

1. Physical Appearance of a Business Letter

2. Structure (Layout) of a Business Letter: Regular and Occasional parts
3. Seven Cs of Business Letter Writing

UNIT- THREE
Business Letters

1. Inquiry for goods

2. Reply to an inquiry
3. Placing an order
4. Execution of an order
5. Asking for an extension of time limit to execute the order
6. Offering substitute goods
7. Cancellation of an order (Reason: Delay in execution of order)

Page 4 of 20
 UNIT- FOUR
(A) E-mail Writing

* Understanding the Basics of an E-mail (No Theory based questions will be

asked. Only Objective Type questions and MCQs can be asked in Q-5.)

* Writing Complaints and their Adjustments on the following situations

through E-mail:
1. Late delivery of goods
2. Damaged goods
3. Shortage in quantity of goods
4. Rude behaviour of a salesperson

(B) Vocabulary

Words Commonly Used in Business Communication: (*List is attached)

*List of Words Commonly Used in Business Communication

1. Agenda 26. Gross

2. At par 27. Lease
3. Backlog 28. Liabilities
4. Bankruptcy 29. Lockout
5. Beneficiary 30. Margin
6. Bill of Lading 31. Minimum Wage
7. Black Market 32. Monopoly
8. Breach of Contract 33. Mortgage
9. Budget 34. Negotiable
10. Bullion 35. Patent
11. Capital 36. Petty cash
12. Collateral 37. Pledge
13. Commission 38. Power of Attorney
14. Consignee 39. Promissory Note
15. Creditor 40. Rebate
16. Dead stock 41. Recession
17. Default 42. Reimburse
18. Deficit 43. Revenue
19. Disbursement 44. Royalty
20. Dock Receipt 45. Subsidy
21. Entrepreneur 46. Surplus
22. Exchange rate 47. Syndicate
23. Fiscal 48. Trademark
24. Franchise 49. Volume of business
25. Freight 50. Waive

Page 5 of 20
 Gujarat University
B. Com. Programme

Structure of Question Paper

SEMESTER-II

COMMERCIAL COMMUNICATION-II

(With Effect from Academic Year 2017-2018)

Q-1. Essay Type Question (From Unit-1) 14

(OR)
Essay Type Question (From Unit-1)

Q-2. (A) Short note on any ONE: (out of Two) - (From Unit – 2) 7

(B) Do as directed: (From Unit-2) 7

(Objective type questions having one mark for each item)

Q-3. Drafting of Business Letter (From Unit- 3) 14

(OR)
Drafting of Business Letter (From Unit- 3)

Q-4. (A) E-mail Writing: Complaint [From Unit- 4 (A)] 8

(OR)
E-mail Writing: Adjustment [From Unit- 4 (A)]

(B) Match the following words: 6

[Six items from Vocabulary of Unit- 4 (B)]

Q- 5. Do as directed: (From Unit-1 to 4) 14

(A) Choose the correct option: (Four MCQs)
(B) State whether the following statements are TRUE or FALSE:
(Five sentences)
(C) Match the following: (Five items)

Page 6 of 20
 Gujarat University
B. Com. Programme
SEMESTER-III
COMMERCIAL COMMUNICATION-III
(With Effect from Academic Year 2018-2019)

UNIT- ONE
Text
Colours of Life – (Section One)
Published by: Macmillan

UNIT- TWO
Soft Skills for Effective Communication

1. Business ethics and etiquettes

2. Netiquettes
3. Leadership qualities
4. Presentation skills
5. Time management
6. Negotiation skills

UNIT- THREE
Bank Correspondence

1. Stop payment of a cheque

2. Error in pass-book / Bank Statement
3. Wrongful dishonour of a cheque
4. Complaint about rude behaviour of a bank employee
5. Requesting bank’s support for social welfare
6. Intimating the loss of a Debit Card / ATM Card / Credit Card
7. Transfer of a Bank Account

Page 7 of 20
 UNIT- FOUR

(A) Comprehension based on a commercial topic

(B) Vocabulary: One-word substitutes (*List is attached)

*List of One-word Substitutes

1. Amicable 26. Impossible

2. Anonymous 27. Inaudible
3. Autobiography 28. Incredible
4. Bakery 29. Inevitable
5. Biography 30. Invincible
6. Contagious 31. Irritable
7. Contemporary 32. Maiden
8. Dialysis 33. Manuscript
9. Ecology 34. Martyr
10. Edible 35. Meteorologist
11. Emigrant 36. Netiquette
12. Equanimous 37. Notorious
13. Eternal 38. Obsolete
14. Extempore 39. Octogenarian
15. Fable 40. Optimist
16. Fatalist 41. Ornithology
17. Flexible 42. Pessimist
18. Glutton 43. Pseudonym
19. Gullible 44. Smuggling
20. Honorarium 45. Teenager
21. Hydrography 46. Teetotaller
22. Illegal 47. Timid
23. Illegible 48. Unanimous
24. Illiterate 49. Vegetarian
25. Immigrant 50. Volunteer

Page 8 of 20
 Gujarat University
B. Com. Programme
Structure of Question Paper
SEMESTER-III

COMMERCIAL COMMUNICATION-III

(With Effect from Academic Year 2018-2019)

Q-1. (A) Answer any FOUR questions in brief: (out of six) (From Unit -1) 12

(B) State whether the following statements are TRUE or FALSE: 2

(Only TWO statements) (From Unit -1)

Q-2. (A) Write a short note on any ONE: (out of three) (From Unit -1) 8

(B) Choose the appropriate options: (only Six MCQs) (From Unit -1) 6

Q-3. Write short notes on any TWO of the following: (out of three) 14
(From Unit 2)

Q-4. Bank Letter (From Unit – 3) 14

(OR)
Bank Letter (From Unit – 3)

Q-5. (A) Comprehension (From Unit – 4- A) 8

(Four questions having Two Marks for each)

(B) Match the following: (Six items) 6

(From Vocabulary of Unit – 4-B)

Page 9 of 20
 Gujarat University
B. Com. Programme
SEMESTER-IV
COMMERCIAL COMMUNICATION-IV
(With Effect from Academic Year 2018-2019)

UNIT- ONE
Text
Colours of Life – (Section Two)
Published by: Macmillan

UNIT- TWO
Corporate Social Responsibility Letters
(Written by an Individual)

1. Letter to an MNC to set up a Children Park

2. Letter to a Private Company requesting for donation to set up a
Library for poor students
3. Letter to a Private University to sponsor the seminar for awareness of
RTI Act
4. Letter to a Corporate Bank requesting to arrange a program for the
awareness of Digital banking
5. Letter to a Corporate Hospital to organize a free medical check-up camp

UNIT- THREE
Agency Correspondence

1. Application for an agency

2. Offering terms and conditions of an agency
3. Negotiation for better terms and conditions at initial stage
4. Appointment of an agent
5. Reprimand for a decline in sales
6. Explanation for a decline in sales
7. Surrendering the agency
8. Termination of an agency

Page 10 of 20
 UNIT- FOUR
(A) Collection Letters

1. Notification: A polite intimation letter

2. Reminder letter
3. Strong Reminder letter
4. Letter warning for legal action
5. Letter thanking the customer for the Payment

(B)Vocabulary: Idioms and Phrasal Verbs (*List is attached)

*List of Idioms and Phrasal Verbs

1. a blessing in disguise 26. to abide by

2. a hue and cry 27. to break down
3. all in all 28. to break out
4. as busy as a bee 29. to bring up
5. at the eleventh hour 30. to call off
6. at the spur of the moment 31. to call on
7. beat about the bush 32. to care for
8. born with a silver spoon 33. to carry on
9. by hook or by crook 34. to carry over
10. by leaps and bounds 35. to cure of
11. child’s play 36. to drop in
12. fleet of foot 37. to get along with
13. hat trick 38. to give up
14. heaven knows 39. to keep one’s eyes on
15. Himalayan task 40. to lay down one’s life
16. ifs and buts 41. to look into
17. in a nutshell 42. to make up
18. keep it up 43. to meddle with
19. not be on speaking terms 44. to pass away
20. not one’s cup of tea 45. to put off
21. now and then 46. to put up with
22. on the top of the world 47. to set off
23. sailing in the same boat 48. to stand by
24. the devil’s advocate 49. to take away
25. the other side of the coin 50. to take over

Page 11 of 20
 Gujarat University
B. Com. Programme

Structure of Question Paper

SEMESTER-IV
COMMERCIAL COMMUNICATION - IV
(With Effect from Academic Year 2018-2019)

Q-1. (A) Answer any FOUR questions in brief: (out of six) (From Unit-1) 12

(B) State whether the following statements are TRUE or FALSE: 2

(Only TWO statements) (From Unit-1)

Q-2. (A) Write a short note on any ONE: (out of three) (From Unit-1) 8
(B) Choose the appropriate options: (only Six MCQs) (From Unit-1) 6

Q-3. Corporate Social Responsibility Letter (From Unit-2) 14

(OR)
Corporate Social Responsibility Letter (From Unit-2)

Q-4. Agent’s Letter to the Principal (From Unit-3) 14

(OR)
Principal’s Letter to an Agent (From Unit-3)

Q-5. (A) Collection Letter (Unit-4 – A) 8

(OR)
Collection Letter (Unit-4 –A)

(B) Match the following: (Six Items) 6

(Three Idioms and three Phrasal Verbs from of Unit - 4 – B)

Page 12 of 20
 Gujarat University
B. Com. Programme

SEMESTER - V

COMMERCIAL COMMUNICATION - V
(With Effect from Academic Year 2019-2020)

UNIT - ONE
Text
Petals of Life – (Section One)
Published by: Oxford University Press

UNIT – TWO
Press Reports
(A) Introduction to Mass Media
1. Introduction to Media: Print and Electronic
2. A brief review of the evolution of Indian Press
3. Press as a Fourth Estate: Its role and impact on society
4. Major News Agencies in India
5. Definition of News and News values
6. Structure of a Press Report
7. Features of a Press Report
N.B.: No Theory based questions will be asked from the above mentioned
points. They are only for understanding of the Topic. They should be
discussed in brief before the actual drafting of Press Reports.

(B) Drafting of Press Reports

1. Accidents:
(i) A Serious Road Mishap (A Collision of Two Vehicles only)
(ii) A Train Disaster (A Collision of Two Trains only)
(iii) A Plane Crash
(iv) A Boat Tragedy

2. Natural Calamities:
(ii) An Earthquake
(iii) A Tsunami
(iv) A Devastating Flood
(v) A Cyclonic Storm

3. Current Events:
(An Event that has greater news value and concerns larger sections of society)

Page 13 of 20
 UNIT – THREE
Insurance Correspondence
(Letters written to Insurance Companies only)

1. Soliciting information about a Life Insurance Policy

2. Inquiring about a Medical Insurance Policy
3. Asking for a loan against an existing Life Insurance Policy
4. Claiming full benefits due to death of the policy holder by the nominee
5. Claiming medical re-imbursement on the policy
6. Intimating the change of nomination
7. Asking for the surrender value of a life insurance policy

UNIT - FOUR
Cloze Test and Vocabulary
(A) Cloze Test
(Intermediate Level with Multiple Choices)
N. B.: The passage should be of about 200 words aiming at testing the students’
intermediate level proficiency in language. The students are expected to write
the answers only instead of reproducing the whole passage in the examination.
A Specimen for Cloze Test is given herewith.

(B)Vocabulary: Foreign Words in Common Use

1. Ad hoc (L) 17. Ex-officio (L) 34. Per contra (L)

2. Ad interim (L) 18. Ex-parte (L) 35. Per diem (L)
3. Alibi (L) 19. Fait accompli (F) 36. Prima facie (L)
4. Bona fide (L) 20. Front à front (F) 37. Pro forma (L)
5. Caveat emptor (L) 21. Id est (i.e.) (L) 38. Pro rata (L)
6. Consensus (L) 22. In camera (L) 39. Proximo (L)
7. Corrigendum (L) 23. In toto (L) 40. Senor (Sp)
8. De facto (L) 24. Intra vires (L) 41. Senorita (Sp)
9. De jure (L) 25. Ipso facto (L) 42. Sine die (L)
10. Debris (F) 26. Lacuna (L) 43. Status quo (L)
11. Emeritus (L) 27. Locus standi (L) 44. Sub- judice (L)
12. En masse (F) 28. Mala fide (F) 45. Ultimo (L)
13. En route (F) 29. Modus operandi (L) 46. Ultra vires (L)
14. Eureka (Gk) 30. Nota bene (L) 47. Via media (L)
15. Exempli gratia 31. Per annum (L) 48. Vice (L)
(e.g.) (L) 32. Per capita (L) 49. Vice versa (L)
16. Ex-gratia (L) 33. Per centum (L) 50. Viva voce (L)

(L= Latin, F=French, Gk =Greek, Sp= Spanish)

Page 14 of 20
 A Specimen for Cloze Test

Q - Read the following passage and select the correct options:

Mahatma Gandhi (1) born in Gujarat and lived some years in England, (2)
he studied law, and in South Africa, where he practised as a lawyer. He returned
to India from South Africa to join the Freedom Movement against the British
rule. Gandhi was one of those people who, from an early age, felt deeply about
life and questioned its value. He wanted to know and experience life deeply. As
he went through life, a pattern emerged and he was constantly searching for the
answers to his questions. He called his (3) My Experiment with Truth. In fact,
his (4) life was centred around the search for truth and how to put it into
practice in one’s daily life. In South Africa, he came across racial prejudices for
the (5) time. Once, on a train journey to Pretoria, Gandhi was asked to (6)
first class compartment even though he had a ticket for this. The White train
conductor insisted (7) a non-white passenger could not travel in a first class
compartment. But Gandhi refused to accept this. For this defiance, the
conductor pushed him out of the train. It is said that this was one of the
incidents that started him off on his search for justice.

Blank 1 : (A) was (B) has (C) were

Blank 2 : (A) when (B) where (C) wherever
Blank 3 : (A) story (B) biography (C) autobiography
Blank 4 : (A) Part (B) half (C) whole
Blank 5 : (A) last (B) first (C) fast
Blank 6 : (A) leave (B) stay (C) live
Blank 7 : (A) these (B) this (C) that

N.B.: The students are advised to write the answers in the following
manner instead of reproducing the whole passage in the examination.

ANSWERS:

Blank 1 : (A) was

Blank 2 : (B) where
Blank 3 : (C) autobiography
Blank 4 : (C) whole
Blank 5 : (B) first
Blank 6 : (A) leave
Blank 7 : (C) that

Page 15 of 20
 Gujarat University
B. Com. Programme

Structure of Question Paper

SEMESTER - V
COMMERCIAL COMMUNICATION - V
(With Effect from Academic Year 2019-2020)

Q-1. (A) Answer any FOUR questions in brief: (out of six) (From Unit-1) 12

(B) State whether the following statements are TRUE or FALSE: 2

(Only TWO statements) (From Unit-1)

Q-2. (A) Write a short note on any ONE: (out of three) (From Unit-1) 8

(B) Choose the appropriate options: (only Six MCQs) (From Unit-1) 6

Q-3. Write a press report on any ONE: (out of three) 14

(1) One on accident (From Unit – 2 (B) - 1)
(2) One on natural calamity (From Unit – 2 (B) - 2)
(3) One on current event (From Unit – 2 (B) - 3)

Q-4. A Letter from Insurance Correspondence (From Unit -3) 14

OR
A Letter from Insurance Correspondence (From Unit-3)

Q-5. (A) Read the following passage and select the correct options: 7
(Cloze Test – UNIT-4- (A) - Passage with SEVEN blanks, each carrying
ONE mark – THREE Options must be given below the passage as
mentioned in the specimen of Cloze Test)

(B) Match the following: (Seven items) 7

(From Vocabulary of Unit- 4 – (B) only)

Page 16 of 20
 Gujarat University
B. Com. Programme
SEMESTER -VI
COMMERCIAL COMMUNICATION - VI
(With Effect from Academic Year 2019-2020)

UNIT - ONE
Text
Petals of Life – (Section Two)
Published by: Oxford University Press

UNIT - TWO
Import Export Correspondence

1. Introductory Letter of an Indian Exporter to an Overseas Importer

2. Letter of Inquiry from a Foreign Importer to an Indian Exporter
3. Reply of an Indian Exporter to an Inquiry of a Foreign Importer
4. Requesting the bank to open an irrevocable letter of credit
5. Intimation of an Indian Importer to an Exporter for the opening of an
irrevocable letter of credit
6. Overseas Exporter’s intimation regarding the shipment of goods

UNIT - THREE
Business Reports

(A) Individual Reports:

1. Opening a Sales Depot of the Company
2. Establishing a Welfare Centre for the Employees
3. Performance Appraisal of the Employees
4. A Fire Accident in the Factory

(B) Committee Reports:

1. Decline in Sales of a Company’s products
2. Demands and Grievances of the Workers
3. Inspection of Branches
4. Taking over an Industrial Unit

UNIT - FOUR
Market Reports
(A) Comprehension of Stock Market Reports (Daily and Weekly)
N. B.: The passage should be of about 200 words aiming at testing the
students’ understanding of happenings of Stock Market. Only FOUR
questions will be asked from the list of technical questions mentioned
herewith. Each question will carry TWO marks.

Page 17 of 20
 List of Technical Questions
1. Explain the headline in simple English.
2. Which trend is indicated in the headline? Quote the word indicating the trend.
3. To which stock exchange the report is related?
4. Find out any two factors responsible for the present trend.
5. What type of a report is this? Quote the word indicating the type of a report.
6. Name the indices mentioned in the report.
7. Find out the previous closing of the following: (only TWO items will be
given)
8. Mention any two scrips that do not follow the general trend.
9. Which scrip did not follow the general trend? Why?
10. Find out from the report any two VERBS denoting bullish trend.
11. Find out from the report any two VERBS denoting bearish trend.
12. What, according to the report, was the previous trend in the market?

(B) Vocabulary
Frequently Used Stock Market Terminology

(01) Advice (18) Gray Market

(02) Bear covering (Bear buying, (19) Institutional buying
Short covering) (20) Intra-day
(03) Benchmark (21) Limelight
(04) Blue chip (22) Nifty
(05) Bourse (23) Nose diving
(06) Brisk buying (24) Pivotal
(07) Bull liquidation (Long (25) Points
liquidation, Bull unloading) (26) Premium
(08) Corporate news (27) Primary Market
(09) Correction (28) Profit taking (Profit booking)
(10) Dalal Street (29) Punters
(11) Demat Account (30) Rally
(12) Disinvestment selling (31) Secondary Market
(13) Equities (32) Selling pressure
(14) Ex-dividend (33) Sensex
(15) Face value (34) Sentiment
(16) Featureless market (35) Speculation
(17) Fluctuations

Abbreviations in Common Use

(36) ASE (37) BSE (38) CRR (39) DIIs (40) EPS (41) FIIs (42) FMCG (43)
FPO (44) GDP (45) IIP (46) IPO (47) NBFC (48) NSE (49) PSU (50)
SEBI

Page 18 of 20
 Gujarat University
B. Com. Programme
Structure of Question Paper

SEMESTER - VI
COMMERCIAL COMMUNICATION - VI
(With Effect from Academic Year 2019-2020)

Q-1. (A) Answer any FOUR questions in brief: (out of six) (From Unit-1) 12

(B) State whether the following statements are TRUE or FALSE: 2

(Only TWO statements) (From Unit-1)

Q-2. (A) Write a short note on any ONE: (out of three) (From Unit-1) 8

(B) Choose the appropriate options: (only Six MCQs) (From Unit-1) 6

Q-3. Letter from Import Export Correspondence (From Unit-2) 14

(OR)
Letter from Import Export Correspondence (From Unit-2)

Q-4. Individual Report (From Unit -3 -A) 14

(OR)
Committee Report (From Unit -3- B)

Q-5. (A) Read the following market report carefully and answer the questions
that follow it: (From Unit - 4 –A) 8
(N.B.: Only FOUR questions will be asked from the list of Technical
Questions each carrying TWO marks.)

(B) Do as directed: (From Vocabulary of Unit-4-B only) 6

(1) Match the following: (Four items)
(2) Give full forms of the following: (Two items)

Page 19 of 20
 Recommended Reading
(For Semester 1to 6)
01. Business Communication – Urmila Rai & S. M. Rai – Himalaya Publishing
House, Mumbai

02. Business Communication – Homai Pradhan & N. S. Pradhan – Himalaya

Publishing House, Mumbai

03. Business Communication – Asha Kaul – Prentice-Hall, New Delhi

04. Essentials of Business Communication – Rajendra Pal & J. S. Korlahalli –

Sultan Chand & Sons, New Delhi

05. Effective Business Communication – Dr. S. K. Agrawal & Dr. P. K. Singh –

Himanshu Publications, New Delhi

06. Business Correspondence and Report Writing – R. C. Sharma & Krishna

Mohan – Tata McGraw Hill, New Delhi

07. Business Communication (Principles, Methods and Techniques) – Nirmal

Singh – Deep & Deep Publications, New Delhi

08. Effective Business Communication - Murphy G. A., Hildebrandt W. H.,

Thomas J. P., Tata McGraw Hill, New Delhi

09. A Handbook of Commercial Correspondence – A. Ashley – OUP, New

Delhi

10. Word Power Made Easy – Norman Lewis - Goyal Saab, New Delhi

11. Communicative Competence in Business English – Robinson, Netrakanti &

Shintre – Orient Longman, Hyderabad

12. Oxford Dictionary of Phrasal Verbs – A. P. Cowie & R. Mackin, OUP, New
Delhi

13. A Guide to Business Correspondence and Communication Skills – A.N.

Kapoor – Sultan Chand & Sons, New Delhi

14. Business Communication Today – Bovee & Thill – Prentice-Hall, New

Delhi

15. Guide to Report Writing (Guide to Business Communication Series) –

Netzley & Snow –Prentice-Hall, New Delhi

Page 20 of 20
 T. Y. B. COM.

SEMESTER V 
ADVANCED ACCOUNTING & AUDITING 
CE 301 A    COSTS AND FINANCIAL ACCOUNTING 
 
Unit 1: Process Costing ‐ I:               [25%] 
 
a. Meaning,  Definition  and  Features;  Job  Costing  vs.  Process 
Costing;  processes  losses  and  gains;  Accounting  of  waste, 
scrap, defectives and spoilage;   
                    
b. Meaning  of  Joint  Products  and  By‐Products;  Objectives  of 
allocation  of  joint  costs  and  Methods  of  Accounting  for  Joint 
Products; Methods of Accounting for By‐Products.           
 
Unit 2:  Process Costing ‐ II:               [25%] 
 
a. Inter Process Profit  and Transfer Price (valuing  Process Stocks 
under FIFO and Average Cost Methods).                                 
 
b. Valuation  of  Work‐in‐Progress  (under  FIFO  and  Average  Cost 
Methods);                  
 
Unit 3: Marginal Costing:                 [25%] 
 
a. Break‐even  and  CVP  Analysis:  Meaning  and  definition  of 
Marginal  Cost,  Marginal  Costing  and  Contribution;  Marginal 
Costing  vs.  Absorption  Costing;  Features  of  Marginal  Costing; 
Situations  where  Marginal  Costing  Technique  is  useful  in 
managerial decision making;            
     
b. Methods  of  determination  of  Break‐even  point:  Graphical 
Method: Traditional Break‐even Chart and Contribution Break‐
even Chart; Algebraic Method; Limitations of C/S Ratio; Margin 
 of  Safety,  Angle  of  incidence  and  assumptions  of  Break‐Even 
Analysis;  Cost‐Volume  Profit  Analysis;  Key  or  Limiting  Factors 
Analysis (analysis where more than one limiting factors exist is 
not  expected);  Optimizing  of  Product  Mix  (basic  problems  to 
highlight its application and limitations).                                 
 
 
c. Meaning  of  the  following  terms  relating  to  ‘Decision‐making 
process’  (only  short  objective  type  theoretical  questions  are 
expected):    Relevant  Cost,  Incremental  Cost,  Sunk  Cost, 
Opportunity  Cost,  Avoidable/unavoidable  costs,  Imputed  or 
Notional  Cost,  Discretionary  Costs,  Common  Costs,  Traceable 
Costs, Joint Costs and Step Costs;         
 
Unit 4:  Amalgamation of Companies:            [25%] 
 
• In the nature of merger: Under Pooling of Interests Method  
(AS 14).   
            
• in the nature of purchase:             
Note: Includes additional points arising on Amalgamation/ 
Absorption: Inter‐company transactions (except Inter‐company 
  Holdings and exchange of shares based on   ‘intrinsic values’). 
 
Notes:    (1)  Practical problems carrying  not  less  than  80%  marks  shall  be  asked. 
This  percentage  is  inclusive  of  20%  weightage  to  be  given  to  a 
multiple  choice  question  divided  into  7  sub‐questions  (at  least  one 
sub‐question  from  each  Unit  shall  be  drawn).  The  students  are 
required  to  provide  justification  for  selecting  the  correct  option  out 
of four options given for each MCQ.  
 
(2)  Question from any sub‐unit shall not be asked in option of any other 
sub‐unit.  
 
(3) Similarly,  questions from any  main Unit  shall  not be set  in option of 
questions from any other main Unit.  
 
  
References:

1.    Ravi  M.  Kishore;  “Cost  &  Management  Accounting”;  Taxmann  Allied  Services 
(P.) Ltd..  
2.   Paresh Shah; “Management Accounting”; Oxford University Press.  
3.  Jawahar  Lal  &  Seema  Srivastava;  “Cost  Accounting”;  Tata  McGraw‐Hill 
Publishing Company Ltd.  
4.  Cost Accounting  
Author: Charles T. Horngren  (Hardback | ISBN10: 0132329018; 
  ISBN13: 9780132329019) 
5.  Ravi M. Kishore; “Cost and Management Accounting”,  
Taxmann’s Publications.  
6.   Horngren, C.T., Cost Accounting – A Managerial Emphasis,.      
  Prentice – Hall  
7.  Advanced Accounting By R. L. Gupta Pub. S. Chand & Co. 
8.  Corporate Accounting: By S. N. Maheshwari [Vikas Publshing House] 
9.  Cost Accounting By P. C. Tulsian [S. Chand & Co.] 
10. Cost Accounting By Dr. Murthy & S. Gurusamy [Tata McGraw Hill Publication] 
11. Corporate Accounting (Theory and Practice) By K. L. Shah [Shree Niwas Pub.]  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T. Y. B. COM.
 
SEMESTER V 
ADVANCED ACCOUNTING & AUDITING 
CE 302 A    MANAGEMENT ACCOUNTING I 

Unit 1: Introduction to Management Accounting and Analysis of    
Financial Statements:               [25%] 
   
1. Definition,  scope,  objectives,  functions,  tools  and  techniques, 
limitations  of  Management  Accounting,  Installation  of 
Management  Accounting  system,  difference  between 
Management Accounting and Cost Accounting; 
 
2. Nature  and  limitations  of  Financial  Statements,  Essentials  of 
good  financial  statements,  Analysis  and  interpretation,  Tools 
of  financial  analysis  (methods,  Comparative  financial 
statements,  procedure  for  interpretation,  objectives  of 
analysis  and  interpretation,  Common  size  statements,  Trend 
analysis.) 
 
Unit 2: Interpretation and Analysis through Financial Ratios:     [25%] 
 
  Meaning,  Importance  and  limitations  of  ratio  analysis,  Calculation 
and  interpretation  of  the  following  ratios  only:  Gross  Profit  Ratio, 
Net  Profit  Ratio,  Stock  Turnover  Ratio,  Operating  Ratio,  Expense 
Ratios, Return on Investment (ROI), Earning per share (EPS: including 
concept of EPS as per AS 20), Current Ratio, Liquid Ratio, Acid Test 
Ratio,  Proprietary  Ratio,  Debt‐equity  Ratio,  Long‐term  Funds  to 
Fixed  Assets  Ratio,  Capital  Gearing  Ratio,  Coverage  Ratio  (interest 
and total),  Debtors Ratio (velocity), Creditors Ratio (velocity), Fixed 
Assets  to  Turnover  Ratio,  Total  Assets  to  Turnover  Ratio,  Debt‐
service  coverage  Ratio,  Cash  earning  per  share,  Dividend  pay‐out 
Ratio, Dividend Yield Ratio, Price Earning Ratio, Market Price to book 
value Ratio. 
 
   Note: Preparation of Financial Statements from given ratios is not 
expected. Emphasis is to be given on interpretation rather  
 than calculation. 
 
Unit 3: Cash Flow Statement:              [25%] 
 
  Concept  and  significance  of  Funds  Flow  Statement;  Sources  and 
Application of Cash; Cash from Operation; Income and Expenditure 
Approach  and  Net  Profit  Approach;  Difference  between  Fund  Flow 
Statement  and  Cash  Flow  Statement;  Preparation  of  Cash  Flow 
Statement as per AS 3. 
 
Unit 4: BUDGETING:                [25%] 
 
(A)  Budgets and Budgetary Control:  
 
  Definition,  Objectives,  Merits  and  de‐merits  of  Budgetary  Control, 
Fixed  and  Flexible  Budgets  (Theory  only),  Control  Ratios,  Zero  base 
Budgeting;  Preparation  of  following  Functional  Budgets  only:  Sales 
Budget,  Selling  and  Distribution  Cost  Budget,  production  Budget, 
cost of Production Budget (Materials, Labour and Overheads). 
 
(B)  Cash Budget:  
 
  Introduction,  Advantages  and  limitations  of  Cash  Budget,  Methods 
of preparing Cash Budget: Cash Receipts and Disbursement Method, 
Adjusted  Earnings  Method,  Balance  Sheet  Projection  Method  and 
Working Capital Differential Method. 
 
Notes:    (1)  Practical problems carrying  not  less  than  80%  marks  shall  be  asked. 
This  percentage  is  inclusive  of  20%  weightage  to  be  given  to  a 
multiple  choice  question  divided  into  7  sub‐questions  (at  least  one 
sub‐question  from  each  Unit  shall  be  drawn).  The  students  are 
required  to  provide  justification  for  selecting  the  correct  option  out 
of four options given for each MCQ.  
 
 (2)  Question from any sub‐unit shall not be asked in option of any other 
sub‐unit.  
 
(3) Similarly,  questions from any  main Unit  shall  not be set  in option of 
questions from any other main Unit.  
 
Reference Books:

1. Management and Cost Accounting  
Author: Colin Drury   Publisher: Pat Bond (U. K.) 
2  Cost Accounting  
Author: Charles T. Horngren  (Hardback | ISBN10: 0132329018; 
  ISBN13: 9780132329019) 
3.  Ravi M. Kishore; “Cost and Management Accounting”,  
Taxmann’s Publications.  
4. Jawahar Lal; “Advanced Management Accounting”,  
S.Chand Publications.  
5  Paresh Shah; “Management Accounting”, Oxford Publication 
6. Horngren, C.T., Cost Accounting – A Managerial Emphasis,.  
         Prentice – Hall  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T. Y. B. COM.
 
SEMESTER VI 
ADVANCED ACCOUNTING & AUDITING 
CE 303 A    MANAGEMENT ACCOUNTING II 

Unit 1: Standard Costing I:               [25%] 
 
  Definition, Standard Cost vs. Budgetary Cost, Setting the standards: 
Variance  analysis:  Total  Material  Cost  Variance,  Material  Price 
Variance,  Material  Usage  Variance,  Material  Mix  Variance,  Total 
Labour  Cost  Variance,  Labour  Rate  Variance,  Labour  Efficiency 
Variance,  Idle  Time  Variance,  Labour  Mix  Variance,  Labour  Yield 
Variance. 
 
 Unit 2: Standard Costing II:               [25%] 
 
a. Overhead Variances: Fixed and Variable, Expenditure Variance, 
Efficiency Variance, Capacity Variance, Calendar Variance; 
 
Notes:   (i)  Rate  of  recovery  of  overheads  to  be  based  on 
labour time only. 
  (ii)  Problems  relating  to  finding  out  missing  data  are 
not expected. 
 
b. Sales Value Variances: Sales Price, Sales Volume, Sales Quantity 
and Sales Mix Variances.  
Sales  Margin  Variances:  Total  sales  Margin  Variance,  Sales 
Margin  Price  Variance,  Sales  Margin  Volume  Variance,  Sales 
margin  Mix  Variance,  Sales  Margin  Quantity  (sub‐volume) 
Variance. 
 
Notes:   (i)  Problems  relating  to  Reconciliation  and 
Interpretation of Variances are not expected.  
(ii)     Problems relating to finding out missing data are 
not expected. 
  
 
Unit 3: Capital Budgeting ‐ 1:              [25%] 
 
(A) Meaning, Importance and Process of Capital Budgeting. 
 
Methods based on profit and recovery of cash outlays:  
 
(1) Accounting Rate of Return (ARR) Method; 
(2) Pay‐Back Method. 
 
(B)  Time Value of Money: 
 
Reasons for Time Value, Simple and Compound Interest, Present 
Value  and  Discount  Factors,  Future  Value  and  Present  value  of 
an  ordinary  annuity,  Present  value  of  a  differed  annuity  and 
Perpetuity, Meaning of  Amortization of and creation of Sinking 
Fund, Nominal and Real Interest Rates. 
 
Unit 4: Capital Budgeting ‐2:               [25%] 
       
Methods based on present value of cash flows:  
   
(1) Net Present Value (NPV) Method; 
(2)          Profitability Index (PI) Method; 
(3) Internal Rate of Return (IRR) Method. 
 
Notes:  (i)   Relevant portion of PV Factors and Annuity Factors must be 
provided in the question paper;   
(ii)    Advance level problems (like calculation of expected cost and 
profit of proposed product to be manufactured, deferment of 
tax  liability,  capital  rationing,  sensitivity  analysis,  decisions 
relating  to  early  retirement  of  existing  assets  etc)  are  not 
expected.  
 
Notes:    (1)  Practical problems carrying  not  less  than  80%  marks  shall  be  asked. 
This  percentage  is  inclusive  of  20%  weightage  to  be  given  to  a 
multiple  choice  question  divided  into  7  sub‐questions  (at  least  one 
 sub‐question  from  each  Unit  shall  be  drawn).  The  students  are 
required  to  provide  justification  for  selecting  the  correct  option  out 
of four options given for each MCQ.  
 
(2)  Question from any sub‐unit shall not be asked in option of any other 
sub‐unit.  
 
(3)Similarly,  questions  from  any  main  Unit  shall  not  be  set  in  option  of 
questions from any other main Unit.  
 
Reference Books: 

1. Management and Cost Accounting  
Author: Colin Drury   Publisher: Pat Bond (U. K.) 
2  Cost Accounting  
Author: Charles T. Horngren  (Hardback | ISBN10: 0132329018; 
  ISBN13: 9780132329019) 
3.  Ravi M. Kishore; “Cost and Management Accounting”,  
Taxmann’s Publications.  
4. Jawahar Lal; “Advanced Management Accounting”,  
S.Chand Publications.  
5  Paresh Shah; “Management Accounting”, Oxford Publication 
6. Horngren, C.T., Cost Accounting – A Managerial Emphasis,.  
        Prentice – Hall  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 T. Y. B. COM.
SEMESTER VI 
ADVANCED ACCOUNTING & AUDITING 
CE 304 A    AUDITING II  
 
Unit   Particulars  Marks

Unit – I  Company Audit          25%

• Importance  of  Memorandum,  articles, 

prospectus, minute book, preliminary contract 
• Issue of shares at premium and at discount, issue 
of  right  shares,  issue  of  bonus  shares,  issue  of 
shares for the consideration other than cash 
• Redemption  of  preference  shares  and 
debentures,  conversion  of  debentures  in  to 
shares, forfeiture of shares 
• Audit of share transfer 
Unit – II  Auditor’s Report and Certificate         25%

• Meaning and importance of auditor’s report 
• Difference  between  auditor’s  report  and 
certificate 
• Kinds of auditor’s report 
• Specimen of qualified report 
• Use of words “True and Fair” In the report 
• CARO – 2003 
 Unit   Particulars  Marks

Unit – III  Divisible profit and depreciation        25%

• Divisible profit 
o Meaning and importance of profit 
o Determination of profit and it’s problem 
o Debatable points regarding divisible profit 
(Depreciation,  capital  gain,  capital  loss, 
past revenue lost, past profit and transfer 
to reserve) 
o Auditor’s duty regarding divisible profit 
• Depreciation 
o Provisions of the company law 
o Auditor’s duty  
Unit – IV  (A) Investigation              25%

• Meaning  and  need,  difference  between  audit 

and investigation 
• Investigation in following cases.. 
o For purchase of business 
o For granting loan 
o In case of declining profit 
  ( B) Audit program of..            

• Hospitals run by public charitable trust 
• Educational institutes 
• Manufacturing company  
 
Notes: (1) 20% weightage is to be given to a multiple choice question divided into 
15 sub‐questions (at least three sub‐question from each Unit shall be drawn). The 
students are required to provide justification for selecting the correct option out 
of four options given for each MCQ.  
            (2)  Question from any sub‐unit shall not be asked in option of any other 
sub‐unit.  
        (3)Similarly, questions from any main Unit shall not be set in option of 
questions from any other main Unit. 
 

References: 

1. Principles of Auditing 
By Rick Stephan Hayes, Roger Dassen, Arnold Schilder, Philip Wallage 
2. Fundamentals of Auditing 
By S. K. Basu [Pub.:Dorling Kindersley (India ) Pvt. Ltd., New Delhi 110017] 
3. Auditing Principles and Techniques 
By S. K. Basu [Pub.:Dorling Kindersley (India ) Pvt. Ltd., New Delhi 110017] 
4. Contemporary Auditing 
By Kamal Gupta [Pub.: Tata McGraw‐Hill Education] 
5. Auditing: Principles and Practice 
By Ravinder Kumar, Virendra Sharma [Pub.: PHL Learning Pvt. Ltd.] 
 

 
 B.COM.

VITH SEMESTER

CC 307 - FUNDAMENTALS OF FINANCIAL MANAGEMENT

UNIT 1 FINANCE FUNCTION AND FINANCIAL PLANNING

Meaning, importance and scope of financial management, financial goals: profit versus value
maximization. Finance function: relationship between finance function and other functional
areas of management, role of finance manager, meaning of financial planning, and steps in
financial planning.

UNIT 2 CAPITALIZATION AND CAPITAL STRUCTURE

Capitalization: meaning, effects and remedies of under capitalization, over capitalization and
watered stock.

Capital structure: Meaning, importance and determination of capital structure. Trading on

equity: meaning, benefits and risks, operating leverage and financial leverage: meaning and
degree of combined leverage (no numerical). Sources of long term finance: equity, debentures
and preference shares: meaning, advantages and limitations of each.

UNIT 3 WORKING CAPITAL MANGEMENT

Concepts and types of working capital – factors determining working capital requirement.
Principles of working capital management, components of working capital: cash, receivables,
inventory, creditors, bank overdraft and others, disadvantages of inadequate working capital.

UNIT 4 COST OF CAPITAL AND CAPITAL BUDGETING

Cost of Capital: Meaning and importance, computation of cost of capital for debentures or bonds,
equity and preference capital and retained earnings. Weighted cost of capital.

Capital Budgeting: meaning, characteristics, process, techniques, meaning, utility and limitations
of various methods – Average rate of return, pay back period, net present value and PI.

REFERENCES:

1. Elements of Financial Management, by S.N.Maheshwari

2. Principles of Financial Management, by N.P.Agrawal, R.K.Tailor, Pioneer Publications
2008
3. Working Capital Management, by N.P.Agrawal, B.K.Mishra, RBSA Publishers
4. Financial Management by P.V.Kulkarni, B.G.Satyaprasad, Himalaya Publishing house
5. Financial Management by S.C.Kuchhal