B.Com. (Accountancy) Semester 5 Notes 2026

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1. Direct and Indirect Taxation - I

   Official Notes munotes.in

   Direct and Indirect Taxation - I

   B.COM. (ACCOUNTANCY) · SEMESTER 5

   Strictly as per the University of Mumbai NEP 2020 syllabus set by the Board of Studies in Accountancy, and written on the Income-tax Act, 2025 as amended by the Finance Act, 2026

   For TYBCom students of the University of Mumbai taking Accountancy as their Major, a degree now awarded as B.Com. (Commerce and Management) and examined as Bachelor of Commerce

   munotes.in TY BCom Accountancy

   Direct and Indirect Taxation - I

   Copyright © 2026 munotes.in. All rights reserved.

   Written and first published by munotes.in, 2026.

   This book is free for individual students to read at munotes.in. No part of it may be reproduced, distributed, stored, translated or used for institutional or classroom purposes in any form without a prior written licence from munotes.in.

   Licensing and permissions: contact@munotes.in

   The text of statutes and of judgments reproduced in this book is in the public domain under section 52(1)(q) of the Copyright Act 1957. The commentary, arrangement, examples and questions are the original work of munotes.in.

   munotes.in is an independent study resource for MU students. It is not affiliated with, endorsed by, or officially connected to the University of Mumbai. Course names and university references describe the students and syllabus the material relates to.

   Contents

   Module I Basic Concepts and Salaries

   1. Why There Is a New Income-tax Act, and What Changed 1
   2. How the Act Is Arranged, and How to Find a Provision in It 4
   3. The Tax Year, Which Replaced the Previous Year and the Assessment Year 6
   4. Assessee, Person, Income and Total Income 8
   5. The Charge of Income-tax 11
   6. Scope of Total Income: What Residence Decides 14
   7. Residence of an Individual: the Day Counts 17
   8. Residence of a HUF, a Firm and a Company 21
   9. Residential Status and Incidence, Worked End to End 24
   10. Income Deemed to Be Received, and Dividend Deemed to Be Income 27
   11. Income Deemed to Accrue or Arise in India 30
   12. The Five Heads of Income 33
   13. A Married Couple under the Portuguese Civil Code 36
   14. A Capital Asset Received from a Specified Entity 38
   15. Incomes Not Included in Total Income: Schedules I to VIII 40
   16. Expenditure Relating to Income That Is Exempt 44
   17. Salaries: What Is Charged, and When 47
   18. Income from Salary: What Goes into the Computation 50
   19. Perquisites, and How Each Is Valued 53

   Contents continued

   Module I continued Basic Concepts and Salaries

   1. Profits in Lieu of Salary 58
   2. Deductions from Salaries 61
   3. A Complete Salary Computation, Worked 65
   4. Practice Questions: Basic Concepts and Salaries 68

   Module II Income from House Property and Capital Gains

   1. Income from House Property: What Is Charged 71
   2. Determination of Annual Value 74
   3. Arrears of Rent and Unrealised Rent Received Later 78
   4. Deductions from Income from House Property 80
   5. Property Owned by Co-owners, and the Head's Own Definitions 83
   6. A Complete House Property Computation, Worked 86
   7. Capital Gains: the Charge, and the Year of Taxability 88
   8. What Is a Capital Asset, and What Is a Transfer 91
   9. Transactions Not Regarded as Transfer 95
   10. Withdrawal of Exemption in Certain Cases 98
   11. Mode of Computation of Capital Gains 101
   12. Cost Where the Asset Was Not Bought 104
   13. Capital Gains on Depreciable Assets 107
   14. When the Act Substitutes the Consideration 110

   Contents continued

   Module II continued Income from House Property and Capital Gains

   1. Slump Sale, and Market Linked Debentures 113
   2. Advance Money Received and Forfeited 115
   3. Profit on Sale of Property Used for Residence 117
   4. Agricultural Land, and Compulsory Acquisition 120
   5. Exemption by Investing the Gain 123
   6. Shifting of an Industrial Undertaking 126
   7. Extension of Time, and the Capital Gains Account Scheme 128
   8. Adjusted, Cost of Improvement and Cost of Acquisition 130
   9. Reference to a Valuation Officer 133
   10. Distribution on Liquidation, and Buy-back of Shares 135
   11. A Complete Capital Gains Computation, Worked 138
   12. Practice Questions: House Property and Capital Gains 140

   Module III Profits and Gains of Business or Profession and Income from Other Sources

   1. Profits and Gains of Business or Profession: What Is Charged 143
   2. The Manner of Computing Business Profits 145
   3. Rent, Rates, Taxes, Repairs and Insurance 148
   4. Deductions Related to Employee Welfare 150
   5. Deduction on Certain Premium 152
   6. Bad Debts, and the Provision for Bad and Doubtful Debts 154

   Contents continued

   Module III continued Profits and Gains of Business or Profession and Income from Other Sources

   1. Other Deductions 156
   2. Depreciation, and the Block of Assets 158
   3. Actual Cost, and Written Down Value 161
   4. Special Provision for the Cost of Certain Assets 164
   5. The General Conditions for an Allowable Deduction 166
   6. Amounts Not Deductible in Certain Circumstances 168
   7. Expenses or Payments Not Deductible 170
   8. Deductions Allowed Only on Actual Payment 172
   9. Certain Sums Deemed to Be Profits 174
   10. The Head's Own Definitions 177
   11. A Complete Business Computation, Worked 179
   12. Income from Other Sources: the Residual Head 181
   13. Gifts, and Receipts Without Consideration 184
   14. Deductions, and Amounts Not Deductible, under Other Sources 188
   15. Profits Chargeable to Tax under Other Sources 192
   16. Practice Questions: Business Profits and Other Sources 194

   Module IV Deductions, Rebates, Reliefs and Total Income Computation

   1. Deductions to Be Made in Computing Total Income 197
   2. Life Insurance Premia, Deferred Annuity and Provident Fund 199

   Contents continued

   Module IV continued Deductions, Rebates, Reliefs and Total Income Computation

   1. Contributions to a Pension Scheme, and to the Agnipath Scheme 201
   2. Health Insurance Premia 204
   3. A Dependant with Disability, and Medical Treatment 207
   4. Interest on a Loan for Higher Education 209
   5. Interest on a Loan for a Residential House 211
   6. Interest on a Loan to Buy an Electric Vehicle 214
   7. Donations to Funds and Charitable Institutions 216
   8. Deduction in Respect of Rents Paid 219
   9. Interest on Deposits, and an Assessee with a Disability 221
   10. Rebate: the Two Kinds, and Which One Applies 223
   11. Relief Where Salary Is Paid in Arrears or in Advance 226
   12. Relief for a Retirement Benefit Account Held Abroad 229
   13. The New Tax Regime for Individuals and Hindu Undivided Families 231
   14. Total Income and Tax Liability, Worked End to End 234
   15. Practice Questions: Deductions, Rebates and Total Income 237

   Page 1 onwards

   239 pages in this book. The cover and the contents are above. Everything from page one is in the pass.

   Notes

   2026 Edition, as per the latest syllabus. 239 pages.

   Every chapter in the notes: 88 chapters across 4 modules

   Module I Basic Concepts and Salaries 23 chapters

   1. 1 Why There Is a New Income-tax Act, and What Changed pages 1–3
   2. 2 How the Act Is Arranged, and How to Find a Provision in It pages 4–5
   3. 3 The Tax Year, Which Replaced the Previous Year and the Assessment Year pages 6–7
   4. 4 Assessee, Person, Income and Total Income pages 8–10
   5. 5 The Charge of Income-tax pages 11–13
   6. 6 Scope of Total Income: What Residence Decides pages 14–16
   7. 7 Residence of an Individual: the Day Counts pages 17–20
   8. 8 Residence of a HUF, a Firm and a Company pages 21–23
   9. 9 Residential Status and Incidence, Worked End to End pages 24–26
   10. 10 Income Deemed to Be Received, and Dividend Deemed to Be Income pages 27–29
   11. 11 Income Deemed to Accrue or Arise in India pages 30–32
   12. 12 The Five Heads of Income pages 33–35
   13. 13 A Married Couple under the Portuguese Civil Code pages 36–37
   14. 14 A Capital Asset Received from a Specified Entity pages 38–39
   15. 15 Incomes Not Included in Total Income: Schedules I to VIII pages 40–43
   16. 16 Expenditure Relating to Income That Is Exempt pages 44–46
   17. 17 Salaries: What Is Charged, and When pages 47–49
   18. 18 Income from Salary: What Goes into the Computation pages 50–52
   19. 19 Perquisites, and How Each Is Valued pages 53–57
   20. 20 Profits in Lieu of Salary pages 58–60
   21. 21 Deductions from Salaries pages 61–64
   22. 22 A Complete Salary Computation, Worked pages 65–67
   23. 23 Practice Questions: Basic Concepts and Salaries pages 68–70

   Module II Income from House Property and Capital Gains 26 chapters

   1. 24 Income from House Property: What Is Charged pages 71–73
   2. 25 Determination of Annual Value pages 74–77
   3. 26 Arrears of Rent and Unrealised Rent Received Later pages 78–79
   4. 27 Deductions from Income from House Property pages 80–82
   5. 28 Property Owned by Co-owners, and the Head's Own Definitions pages 83–85
   6. 29 A Complete House Property Computation, Worked pages 86–87
   7. 30 Capital Gains: the Charge, and the Year of Taxability pages 88–90
   8. 31 What Is a Capital Asset, and What Is a Transfer pages 91–94
   9. 32 Transactions Not Regarded as Transfer pages 95–97
   10. 33 Withdrawal of Exemption in Certain Cases pages 98–100
   11. 34 Mode of Computation of Capital Gains pages 101–103
   12. 35 Cost Where the Asset Was Not Bought pages 104–106
   13. 36 Capital Gains on Depreciable Assets pages 107–109
   14. 37 When the Act Substitutes the Consideration pages 110–112
   15. 38 Slump Sale, and Market Linked Debentures pages 113–114
   16. 39 Advance Money Received and Forfeited pages 115–116
   17. 40 Profit on Sale of Property Used for Residence pages 117–119
   18. 41 Agricultural Land, and Compulsory Acquisition pages 120–122
   19. 42 Exemption by Investing the Gain pages 123–125
   20. 43 Shifting of an Industrial Undertaking pages 126–127
   21. 44 Extension of Time, and the Capital Gains Account Scheme pages 128–129
   22. 45 Adjusted, Cost of Improvement and Cost of Acquisition pages 130–132
   23. 46 Reference to a Valuation Officer pages 133–134
   24. 47 Distribution on Liquidation, and Buy-back of Shares pages 135–137
   25. 48 A Complete Capital Gains Computation, Worked pages 138–139
   26. 49 Practice Questions: House Property and Capital Gains pages 140–142

   Module III Profits and Gains of Business or Profession and Income from Other Sources 22 chapters

   1. 50 Profits and Gains of Business or Profession: What Is Charged pages 143–144
   2. 51 The Manner of Computing Business Profits pages 145–147
   3. 52 Rent, Rates, Taxes, Repairs and Insurance pages 148–149
   4. 53 Deductions Related to Employee Welfare pages 150–151
   5. 54 Deduction on Certain Premium pages 152–153
   6. 55 Bad Debts, and the Provision for Bad and Doubtful Debts pages 154–155
   7. 56 Other Deductions pages 156–157
   8. 57 Depreciation, and the Block of Assets pages 158–160
   9. 58 Actual Cost, and Written Down Value pages 161–163
   10. 59 Special Provision for the Cost of Certain Assets pages 164–165
   11. 60 The General Conditions for an Allowable Deduction pages 166–167
   12. 61 Amounts Not Deductible in Certain Circumstances pages 168–169
   13. 62 Expenses or Payments Not Deductible pages 170–171
   14. 63 Deductions Allowed Only on Actual Payment pages 172–173
   15. 64 Certain Sums Deemed to Be Profits pages 174–176
   16. 65 The Head's Own Definitions pages 177–178
   17. 66 A Complete Business Computation, Worked pages 179–180
   18. 67 Income from Other Sources: the Residual Head pages 181–183
   19. 68 Gifts, and Receipts Without Consideration pages 184–187
   20. 69 Deductions, and Amounts Not Deductible, under Other Sources pages 188–191
   21. 70 Profits Chargeable to Tax under Other Sources pages 192–193
   22. 71 Practice Questions: Business Profits and Other Sources pages 194–196

   Module IV Deductions, Rebates, Reliefs and Total Income Computation 17 chapters

   1. 72 Deductions to Be Made in Computing Total Income pages 197–198
   2. 73 Life Insurance Premia, Deferred Annuity and Provident Fund pages 199–200
   3. 74 Contributions to a Pension Scheme, and to the Agnipath Scheme pages 201–203
   4. 75 Health Insurance Premia pages 204–206
   5. 76 A Dependant with Disability, and Medical Treatment pages 207–208
   6. 77 Interest on a Loan for Higher Education pages 209–210
   7. 78 Interest on a Loan for a Residential House pages 211–213
   8. 79 Interest on a Loan to Buy an Electric Vehicle pages 214–215
   9. 80 Donations to Funds and Charitable Institutions pages 216–218
   10. 81 Deduction in Respect of Rents Paid pages 219–220
   11. 82 Interest on Deposits, and an Assessee with a Disability pages 221–222
   12. 83 Rebate: the Two Kinds, and Which One Applies pages 223–225
   13. 84 Relief Where Salary Is Paid in Arrears or in Advance pages 226–228
   14. 85 Relief for a Retirement Benefit Account Held Abroad pages 229–230
   15. 86 The New Tax Regime for Individuals and Hindu Undivided Families pages 231–233
   16. 87 Total Income and Tax Liability, Worked End to End pages 234–236
   17. 88 Practice Questions: Deductions, Rebates and Total Income pages 237–239

2. Accounting and Auditing Financial Accounting - III - 4 Credit

   Official Notes munotes.in

   Accounting and Auditing Financial Accounting - III - 4 Credit

   B.COM. (ACCOUNTANCY) · SEMESTER 5

   Strictly as per the University of Mumbai NEP 2020 syllabus set by the Board of Studies in Accountancy, in force from the academic year 2026-27

   For TYBCom students of the University of Mumbai taking Accountancy as their Major, a degree now awarded as B.Com. (Commerce and Management) and examined as Bachelor of Commerce

   munotes.in TY BCom Accountancy

   Accounting and Auditing Financial Accounting - III - 4 Credit

   Copyright © 2026 munotes.in. All rights reserved.

   Written and first published by munotes.in, 2026.

   This book is free for individual students to read at munotes.in. No part of it may be reproduced, distributed, stored, translated or used for institutional or classroom purposes in any form without a prior written licence from munotes.in.

   Licensing and permissions: contact@munotes.in

   The text of statutes and of judgments reproduced in this book is in the public domain under section 52(1)(q) of the Copyright Act 1957. The commentary, arrangement, examples and questions are the original work of munotes.in.

   munotes.in is an independent study resource for MU students. It is not affiliated with, endorsed by, or officially connected to the University of Mumbai. Course names and university references describe the students and syllabus the material relates to.

   Contents

   Module I Internal Reconstruction

   1. What a Reconstruction Is, and Why a Company Needs One 1
   2. Internal and External Reconstruction: the Distinction That Decides Everything 4
   3. Where These Powers Live in the Companies Act 2013 6
   4. Alteration of Share Capital: Section 61 9
   5. Sub-division of Shares, Worked 12
   6. Consolidation of Shares, Worked 14
   7. Conversion of Shares into Stock and Back 16
   8. Cancellation of Unissued Capital 18
   9. Notice to the Registrar: Section 64 20
   10. Variation of Shareholders' Rights 22
   11. Reduction of Share Capital: Section 66 25
   12. Reading a Reconstruction Question: Finding the Scheme in the Prose 28
   13. Surrender of Shares, Re-issue and Cancellation 30
   14. The Capital Reduction Account: Opening It, Using It, Closing It 32
   15. The Full Set of Entries for a Scheme of Internal Reconstruction 35
   16. A Complete Worked Scheme: Old Balance Sheet to New 37
   17. Practice Questions: Internal Reconstruction 43

   Contents continued

   Module II AS – 14 - Amalgamation, Absorption & External Reconstruction (excluding intercompany holdings)

   1. Why Amalgamation Needs a Standard 46
   2. The Scope of AS 14, and What It Excludes 48
   3. The Definitions AS 14 Sets 50
   4. Amalgamation in the Nature of Merger: the Five Conditions 52
   5. Amalgamation in the Nature of Purchase 55
   6. Transferor and Transferee: Reading the Question Correctly 57
   7. Purchase Consideration: What AS 14 Actually Means By It 59
   8. Computing Purchase Consideration: Net Assets Method, Worked 62
   9. Computing Purchase Consideration: Net Payments Method, Worked 64
   10. The Pooling of Interests Method: Principles 66
   11. Pooling of Interests, Worked 68
   12. The Purchase Method: Principles 70
   13. The Purchase Method, Worked in the Transferee's Books 72
   14. Treatment of Reserves, and the Amalgamation Adjustment Account 75
   15. Goodwill Arising on Amalgamation and Its Amortisation 78
   16. Disclosure under AS 14, and Amalgamation after the Balance Sheet Date 80
   17. Practice Questions: Amalgamation under AS 14 83

   Contents continued

   Module III Investment Accounting (w.r.t. Accounting Standard- 13)

   1. What an Investment Is, and Why It Is Accounted For Separately 86
   2. The Scope of AS 13, and What It Does Not Deal With 88
   3. The Definitions AS 13 Sets 90
   4. Forms of Investments 92
   5. Classification: Current and Long-term 94
   6. The Cost of an Investment 96
   7. Acquisition by Issue of Shares or in Exchange, Worked 98
   8. Interest, Dividends and Rentals: Pre- and Post-acquisition 100
   9. Right Shares and Their Cost 103
   10. Carrying Amount: Current Investments 106
   11. Carrying Amount: Long-term Investments 108
   12. Investment Properties 111
   13. The Investment Account, Worked 113
   14. Disposal of Investments 117
   15. Reclassification of Investments 119
   16. Disclosure Requirements under AS 13 121
   17. Practice Questions: Investment Accounting 124

   Contents continued

   Module IV Buy Back of Shares

   1. What Buy-Back Is, and Why a Company Does It 127
   2. The General Prohibition: Section 67 129
   3. The Power to Buy Back: Section 68 131
   4. The Three Permitted Sources, and What They Are Not 133
   5. The Conditions in Section 68(2) 135
   6. The Two Twenty-Five Per Cent Limits, Worked 138
   7. The Debt-Equity Ratio Condition, Worked 140
   8. Finding the Maximum Number of Shares That May Be Bought Back 142
   9. Procedure and Time Limits under Section 68 144
   10. Transfer to the Capital Redemption Reserve: Section 69 147
   11. Prohibition for Buy-Back in Certain Circumstances: Section 70 150
   12. The Accounting Entries for a Buy-Back 153
   13. Buy-Back at a Premium, Worked 155
   14. Buy-Back Out of the Proceeds of a Fresh Issue, Worked 157
   15. Cancellation of Shares Bought Back 159
   16. A Complete Worked Buy-Back: Tests, Entries and the New Balance Sheet 161
   17. Practice Questions: Buy Back of Shares 164

   Page 1 onwards

   165 pages in this book. The cover and the contents are above. Everything from page one is in the pass.

   Notes

   2026 Edition, as per the latest syllabus. 165 pages.

   Every chapter in the notes: 68 chapters across 4 modules

   Module I Internal Reconstruction 17 chapters

   1. 1 What a Reconstruction Is, and Why a Company Needs One pages 1–3
   2. 2 Internal and External Reconstruction: the Distinction That Decides Everything pages 4–5
   3. 3 Where These Powers Live in the Companies Act 2013 pages 6–8
   4. 4 Alteration of Share Capital: Section 61 pages 9–11
   5. 5 Sub-division of Shares, Worked pages 12–13
   6. 6 Consolidation of Shares, Worked pages 14–15
   7. 7 Conversion of Shares into Stock and Back pages 16–17
   8. 8 Cancellation of Unissued Capital pages 18–19
   9. 9 Notice to the Registrar: Section 64 pages 20–21
   10. 10 Variation of Shareholders' Rights pages 22–24
   11. 11 Reduction of Share Capital: Section 66 pages 25–27
   12. 12 Reading a Reconstruction Question: Finding the Scheme in the Prose pages 28–29
   13. 13 Surrender of Shares, Re-issue and Cancellation pages 30–31
   14. 14 The Capital Reduction Account: Opening It, Using It, Closing It pages 32–34
   15. 15 The Full Set of Entries for a Scheme of Internal Reconstruction pages 35–36
   16. 16 A Complete Worked Scheme: Old Balance Sheet to New pages 37–42
   17. 17 Practice Questions: Internal Reconstruction pages 43–45

   Module II AS 14 - Amalgamation, Absorption and External Reconstruction 17 chapters

   1. 18 Why Amalgamation Needs a Standard pages 46–47
   2. 19 The Scope of AS 14, and What It Excludes pages 48–49
   3. 20 The Definitions AS 14 Sets pages 50–51
   4. 21 Amalgamation in the Nature of Merger: the Five Conditions pages 52–54
   5. 22 Amalgamation in the Nature of Purchase pages 55–56
   6. 23 Transferor and Transferee: Reading the Question Correctly pages 57–58
   7. 24 Purchase Consideration: What AS 14 Actually Means By It pages 59–61
   8. 25 Computing Purchase Consideration: Net Assets Method, Worked pages 62–63
   9. 26 Computing Purchase Consideration: Net Payments Method, Worked pages 64–65
   10. 27 The Pooling of Interests Method: Principles pages 66–67
   11. 28 Pooling of Interests, Worked pages 68–69
   12. 29 The Purchase Method: Principles pages 70–71
   13. 30 The Purchase Method, Worked in the Transferee's Books pages 72–74
   14. 31 Treatment of Reserves, and the Amalgamation Adjustment Account pages 75–77
   15. 32 Goodwill Arising on Amalgamation and Its Amortisation pages 78–79
   16. 33 Disclosure under AS 14, and Amalgamation after the Balance Sheet Date pages 80–82
   17. 34 Practice Questions: Amalgamation under AS 14 pages 83–85

   Module III Investment Accounting (AS 13) 17 chapters

   1. 35 What an Investment Is, and Why It Is Accounted For Separately pages 86–87
   2. 36 The Scope of AS 13, and What It Does Not Deal With pages 88–89
   3. 37 The Definitions AS 13 Sets pages 90–91
   4. 38 Forms of Investments pages 92–93
   5. 39 Classification: Current and Long-term pages 94–95
   6. 40 The Cost of an Investment pages 96–97
   7. 41 Acquisition by Issue of Shares or in Exchange, Worked pages 98–99
   8. 42 Interest, Dividends and Rentals: Pre- and Post-acquisition pages 100–102
   9. 43 Right Shares and Their Cost pages 103–105
   10. 44 Carrying Amount: Current Investments pages 106–107
   11. 45 Carrying Amount: Long-term Investments pages 108–110
   12. 46 Investment Properties pages 111–112
   13. 47 The Investment Account, Worked pages 113–116
   14. 48 Disposal of Investments pages 117–118
   15. 49 Reclassification of Investments pages 119–120
   16. 50 Disclosure Requirements under AS 13 pages 121–123
   17. 51 Practice Questions: Investment Accounting pages 124–126

   Module IV Buy Back of Shares 17 chapters

   1. 52 What Buy-Back Is, and Why a Company Does It pages 127–128
   2. 53 The General Prohibition: Section 67 pages 129–130
   3. 54 The Power to Buy Back: Section 68 pages 131–132
   4. 55 The Three Permitted Sources, and What They Are Not pages 133–134
   5. 56 The Conditions in Section 68(2) pages 135–137
   6. 57 The Two Twenty-Five Per Cent Limits, Worked pages 138–139
   7. 58 The Debt-Equity Ratio Condition, Worked pages 140–141
   8. 59 Finding the Maximum Number of Shares That May Be Bought Back pages 142–143
   9. 60 Procedure and Time Limits under Section 68 pages 144–146
   10. 61 Transfer to the Capital Redemption Reserve: Section 69 pages 147–149
   11. 62 Prohibition for Buy-Back in Certain Circumstances: Section 70 pages 150–152
   12. 63 The Accounting Entries for a Buy-Back pages 153–154
   13. 64 Buy-Back at a Premium, Worked pages 155–156
   14. 65 Buy-Back Out of the Proceeds of a Fresh Issue, Worked pages 157–158
   15. 66 Cancellation of Shares Bought Back pages 159–160
   16. 67 A Complete Worked Buy-Back: Tests, Entries and the New Balance Sheet pages 161–163
   17. 68 Practice Questions: Buy Back of Shares pages 164–165

3. IKS in Accounting and Taxation

   Official Notes munotes.in

   IKS in Accounting and Taxation

   B.COM. (ACCOUNTANCY) · SEMESTER 5

   Strictly as per the University of Mumbai NEP 2020 syllabus set by the Board of Studies in Accountancy, read against the Arthashastra, the Manu Smriti, the epics and the Ain-i-Akbari in their public-domain translations

   For TYBCom students of the University of Mumbai taking Accountancy as their Major, a degree now awarded as B.Com. (Commerce and Management) and examined as Bachelor of Commerce

   munotes.in TY BCom Accountancy

   IKS in Accounting and Taxation

   Copyright © 2026 munotes.in. All rights reserved.

   Written and first published by munotes.in, 2026.

   This book is free for individual students to read at munotes.in. No part of it may be reproduced, distributed, stored, translated or used for institutional or classroom purposes in any form without a prior written licence from munotes.in.

   Licensing and permissions: contact@munotes.in

   The text of statutes and of judgments reproduced in this book is in the public domain under section 52(1)(q) of the Copyright Act 1957. The commentary, arrangement, examples and questions are the original work of munotes.in.

   munotes.in is an independent study resource for MU students. It is not affiliated with, endorsed by, or officially connected to the University of Mumbai. Course names and university references describe the students and syllabus the material relates to.

   Contents

   Module I Public Financial Administration and Ethical Governance: Insights from Kautilya’s Arthashastra

   1. Why a Commerce Student Reads Kautilya 1
   2. The Arthashastra, and the Text We Are Reading 4
   3. Principles of Public Expenditure 7
   4. Budget Preparation and Control Mechanisms 10
   5. Salary Administration 13
   6. Storehouses, and the Acquisition of Valuables 17
   7. Annual Accountability Reports, and the Closing of the Books 21
   8. The Royal Auditors and the Office of Accounts 25
   9. Audit Procedure: Sealed Accounts, Collusion, and the Full Moon of Asadha 29
   10. Internal Controls Against Fraud and Misuse 32
   11. Codified Rules, and Structure Against Conflicts of Interest 36
   12. Ethics in Accounting, Corruption, and Law and Order 40
   13. Kautilya in Modern Accounting and Governance 44
   14. Practice Questions: Public Financial Administration and Ethics 47

   Module II Taxation Systems in Ancient India

   1. Taxation as Rajadharma and Lokasangraha 52
   2. Ethical Limits on Taxation, and the Protection of Taxpayers 56
   3. Equity, Certainty, Convenience and Economy in Indian Thought 60

   Contents continued

   Module II continued Taxation Systems in Ancient India

   1. Accountability of the Ruler and of Revenue Officials 65
   2. Tax Incidence in a Traditional Economy 69
   3. Taxation in the Ramayana and the Mahabharata 73
   4. Manu Smriti on Taxation 76
   5. The Arthashastra's Revenue Framework 80
   6. The Mauryan Revenue System 84
   7. The Gupta Revenue System 88
   8. Chola and Vijayanagar Fiscal Practice 92
   9. The Sultanate: Iqta, Agricultural Taxation and Market Control 96
   10. Mughal Revenue Administration: Todar Mal, Zabt, and the Balance 100
   11. How a Caselet Is Answered 104
   12. Practice Questions: Taxation Systems in Ancient India 108

   Page 1 onwards

   112 pages in this book. The cover and the contents are above. Everything from page one is in the pass.

   Notes

   2026 Edition, as per the latest syllabus. 112 pages.

   Every chapter in the notes: 29 chapters across 2 modules

   Module I Public Financial Administration and Ethical Governance: Insights from Kautilya's Arthashastra 14 chapters

   1. 1 Why a Commerce Student Reads Kautilya pages 1–3
   2. 2 The Arthashastra, and the Text We Are Reading pages 4–6
   3. 3 Principles of Public Expenditure pages 7–9
   4. 4 Budget Preparation and Control Mechanisms pages 10–12
   5. 5 Salary Administration pages 13–16
   6. 6 Storehouses, and the Acquisition of Valuables pages 17–20
   7. 7 Annual Accountability Reports, and the Closing of the Books pages 21–24
   8. 8 The Royal Auditors and the Office of Accounts pages 25–28
   9. 9 Audit Procedure: Sealed Accounts, Collusion, and the Full Moon of Asadha pages 29–31
   10. 10 Internal Controls Against Fraud and Misuse pages 32–35
   11. 11 Codified Rules, and Structure Against Conflicts of Interest pages 36–39
   12. 12 Ethics in Accounting, Corruption, and Law and Order pages 40–43
   13. 13 Kautilya in Modern Accounting and Governance pages 44–46
   14. 14 Practice Questions: Public Financial Administration and Ethics pages 47–51

   Module II Taxation Systems in Ancient India 15 chapters

   1. 15 Taxation as Rajadharma and Lokasangraha pages 52–55
   2. 16 Ethical Limits on Taxation, and the Protection of Taxpayers pages 56–59
   3. 17 Equity, Certainty, Convenience and Economy in Indian Thought pages 60–64
   4. 18 Accountability of the Ruler and of Revenue Officials pages 65–68
   5. 19 Tax Incidence in a Traditional Economy pages 69–72
   6. 20 Taxation in the Ramayana and the Mahabharata pages 73–75
   7. 21 Manu Smriti on Taxation pages 76–79
   8. 22 The Arthashastra's Revenue Framework pages 80–83
   9. 23 The Mauryan Revenue System pages 84–87
   10. 24 The Gupta Revenue System pages 88–91
   11. 25 Chola and Vijayanagar Fiscal Practice pages 92–95
   12. 26 The Sultanate: Iqta, Agricultural Taxation and Market Control pages 96–99
   13. 27 Mughal Revenue Administration: Todar Mal, Zabt, and the Balance pages 100–103
   14. 28 How a Caselet Is Answered pages 104–107
   15. 29 Practice Questions: Taxation Systems in Ancient India pages 108–112

4. Cost Accounting - I

   Official Notes munotes.in

   Cost Accounting - I

   B.COM. (ACCOUNTANCY) · SEMESTER 5

   Strictly as per the University of Mumbai NEP 2020 syllabus set by the Board of Studies in Accountancy, with the statutory positions on hours and overtime read off the Factories Act, 1948

   For TYBCom students of the University of Mumbai taking Accountancy as their Major, a degree now awarded as B.Com. (Commerce and Management) and examined as Bachelor of Commerce

   munotes.in TY BCom Accountancy

   Cost Accounting - I

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   Written and first published by munotes.in, 2026.

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   Contents

   Module I Classification of Costs and Cost Sheet and Reconciliation of cost and financial accounts

   1. What Cost Accounting Is For, and What It Is Not 1
   2. Classification of Cost by Function 3
   3. Cost Accounting and Financial Accounting Compared 7
   4. The Cost Sheet, and the Order Its Lines Must Take 9
   5. A Complete Cost Sheet, Worked 12
   6. A Cost Statement for the Provision of Services 14
   7. Why the Cost Profit and the Financial Profit Differ 17
   8. Reconciliation of Cost and Financial Accounts, Worked 20
   9. Practice Questions: Cost Sheet and Reconciliation 22

   Module II Material and Employee Cost

   1. Material Cost: What It Is and Why It Is Controlled 25
   2. Purchase Procedures and the Documents They Generate 28
   3. Inventory Control Techniques 30
   4. Economic Order Quantity 33
   5. Reorder Level, Minimum, Maximum and Average Stock 37
   6. Methods of Inventory Accounting 40
   7. The Stock Ledger, Worked 43
   8. Employee Cost, and Direct Expenses 45
   9. Attendance and Payroll Procedures 48

   Contents continued

   Module II continued Material and Employee Cost

   1. Idle Time and Overtime 51
   2. Labour Turnover 55
   3. Utilisation of Labour, and Charging Labour Cost 58
   4. Identifying Labour Hours with Work Orders, Batches and Capital Jobs 61
   5. Efficiency Rating Procedures 64
   6. Remuneration Systems and Incentive Schemes 67
   7. The Labour Cost Statement, Including Incentives, Worked 71
   8. Practice Questions: Material and Employee Cost 75

   Module Appendix Appendix: Overheads, which the older papers ask

   1. Overheads: What the Older Papers Ask, and Where It Belongs 79

   Page 1 onwards

   82 pages in this book. The cover and the contents are above. Everything from page one is in the pass.

   Notes

   2026 Edition, as per the latest syllabus. 82 pages.

   Every chapter in the notes: 27 chapters across 3 modules

   Module I Classification of Costs and Cost Sheet and Reconciliation of cost and financial accounts 9 chapters

   1. 1 What Cost Accounting Is For, and What It Is Not pages 1–2
   2. 2 Classification of Cost by Function pages 3–6
   3. 3 Cost Accounting and Financial Accounting Compared pages 7–8
   4. 4 The Cost Sheet, and the Order Its Lines Must Take pages 9–11
   5. 5 A Complete Cost Sheet, Worked pages 12–13
   6. 6 A Cost Statement for the Provision of Services pages 14–16
   7. 7 Why the Cost Profit and the Financial Profit Differ pages 17–19
   8. 8 Reconciliation of Cost and Financial Accounts, Worked pages 20–21
   9. 9 Practice Questions: Cost Sheet and Reconciliation pages 22–24

   Module II Material and Employee Cost 17 chapters

   1. 10 Material Cost: What It Is and Why It Is Controlled pages 25–27
   2. 11 Purchase Procedures and the Documents They Generate pages 28–29
   3. 12 Inventory Control Techniques pages 30–32
   4. 13 Economic Order Quantity pages 33–36
   5. 14 Reorder Level, Minimum, Maximum and Average Stock pages 37–39
   6. 15 Methods of Inventory Accounting pages 40–42
   7. 16 The Stock Ledger, Worked pages 43–44
   8. 17 Employee Cost, and Direct Expenses pages 45–47
   9. 18 Attendance and Payroll Procedures pages 48–50
   10. 19 Idle Time and Overtime pages 51–54
   11. 20 Labour Turnover pages 55–57
   12. 21 Utilisation of Labour, and Charging Labour Cost pages 58–60
   13. 22 Identifying Labour Hours with Work Orders, Batches and Capital Jobs pages 61–63
   14. 23 Efficiency Rating Procedures pages 64–66
   15. 24 Remuneration Systems and Incentive Schemes pages 67–70
   16. 25 The Labour Cost Statement, Including Incentives, Worked pages 71–74
   17. 26 Practice Questions: Material and Employee Cost pages 75–78

   Module Appendix Appendix: Overheads, which the older papers ask 1 chapter

   1. 27 Overheads: What the Older Papers Ask, and Where It Belongs pages 79–82

Questions