UPSC EPFO Accountancy Questions Analysis:

Sub-area Breakdown
Based on comprehensive analysis of General Accounting Principles questions from UPSC EPFO
previous year papers for both Assistant Provident Fund Commissioner (APFC) and
Enforcement Officer/Accounts Officer (EO/AO) positions, here is a detailed examination of
sub-areas and question patterns.

Overall Weightage Analysis

The General Accounting Principles section has shown consistent importance across UPSC
EPFO examinations:
APFC 2023: 15 questions (12.5% of total paper)
EO/AO 2023: 10 questions (8.33% of total paper)
EO/AO 2021: 15 questions (12.5% of total paper)
The subject has maintained moderate difficulty level requiring thorough conceptual
understanding rather than rote memorization. [1] [2]

Sub-area wise Question Distribution

Sub-area wise Distribution of Accountancy Questions in UPSC EPFO Exams (2021-2023)

High-Priority Sub-areas (4+ questions across years)

1. Accounting Principles & Concepts (8 questions total) [1] [2]
Topics covered: Conservatism principle, Materiality concept, Going concern assumption,
Matching principle, Consistency principle, Accrual concept
Sample questions:
"The value of long-term investment in shares is subject to wide fluctuations. A provision
created against fluctuation in value of investments is based on the convention of
Conservatism" [2]
Questions on fundamental accounting assumptions as per AS-1 [3]
Difficulty: Easy to Moderate
Importance: Very High
2. Financial Statements Preparation (6 questions) [1]
Topics covered: Profit & Loss Account preparation, Balance Sheet preparation, Trading
Account, Income & Expenditure Account
Focus areas: Company final accounts, Manufacturing accounts, Not-for-profit organization
accounts
Difficulty: Moderate
Importance: High
3. Ratio Analysis (5 questions) [4] [5]
Topics covered: Liquidity ratios (Current, Quick), Profitability ratios (Gross profit, Net profit),
Leverage ratios (Debt-Equity), Activity ratios
Calculation types: Current ratio, Quick ratio, Interest coverage ratio, Return on equity
Sample calculations: Given current ratio 2.2:1 and net working capital Rs. 36,000, calculate
current assets [6]
Difficulty: Moderate to Difficult
Importance: High
4. Accounting Standards (AS) (5 questions) [3] [1]
Key standards: AS-1 (Fundamental Assumptions), AS-2 (Inventory Valuation), AS-6
(Depreciation), Revenue Recognition standards
Topics: Inventory valuation methods (FIFO, LIFO, Weighted Average), Revenue recognition
principles
Sample questions: Questions on LIFO method calculations and closing stock valuation [3]
Difficulty: Moderate to Difficult
Importance: High
5. Share Capital Transactions (4 questions) [1]
Topics covered: Share premium, Bonus shares issue, Rights issue, Share buyback, Share
capital accounting
Focus: Company law provisions related to share transactions
Difficulty: Moderate
Importance: High

Medium-Priority Sub-areas (2-3 questions each)

6. Cash Flow Statements (3 questions) [1]
Classifications: Operating activities, Investing activities, Financing activities
Methods: Direct and indirect methods of cash flow preparation
7. Company Final Accounts (3 questions) [1]
Topics: Preparation and presentation of company accounts, Statutory requirements
Areas: Directors' report, Auditor's report provisions
8. Trial Balance & Adjustments (3 questions) [4]
Topics: Rectification of errors, Suspense account, Adjusting entries
Focus: Pre-final account adjustments and corrections
9. Depreciation & Provisions (3 questions) [7]
 Methods: Straight line method, Written down value method
Applications: Provision for depreciation, Capital vs Revenue expenditure [7]
10. Auditing Concepts (3 questions) [2]
Sample question: "Which one of the following aspects is not covered in audit? - Preparation
of books of accounts" [2]
Topics: Internal control systems, Audit procedures, Verification processes

Lower-Priority Sub-areas (1-2 questions each)

11. Books of Accounts (3 questions)
Topics: Journal entries, Ledger posting, Basic bookkeeping
12. Not-for-Profit Accounting (2 questions) [8]
Topics: Receipt & Payment Account, Income & Expenditure Account
Sample concept: "Income and expenditure account is a nominal account" [3]
13. Bills of Exchange (1 question) [1]
Topics: Promissory notes, Bills receivable/payable, Discounting
14. Partnership Accounts (1 question)
Topics: Partnership deed, Profit sharing, Capital accounts
15. Capital vs Revenue Items (1 question) [7]
Distinction: Capital profits/losses vs Revenue profits/losses
Treatment: Capital reserves vs P&L account treatment

Question Pattern Analysis

Conceptual vs Computational Questions

Conceptual Questions (60% of accountancy section):
Accounting principles and their applications
Theoretical knowledge of standards and procedures
Classification of items and accounts
Computational Questions (40% of accountancy section):
Ratio calculations with given data
Financial statement preparation
Cash flow computations
Depreciation calculations
Difficulty Trend Analysis
APFC vs EO/AO Focus Areas:
APFC 2023 emphasized more on advanced accounting topics like company law provisions
and complex accounting standards [9]
EO/AO papers focus more on basic to intermediate accounting concepts with practical
applications [2]

Important Resources and Preparation Strategy

Recommended Books: [1] [2]
1. NCERT Accountancy (Class 11th & 12th) - For fundamental concepts
2. Introduction to Accountancy by S. Chand - Comprehensive coverage
3. D.K. Goel Accountancy Reference Books - For advanced topics
4. CBSE Class XI Accountancy for 2024-25 Examination by D.K. Goel - Current syllabus
alignment
Key Preparation Areas: [1]
Accounting Standards: Focus on AS-1 to AS-32, especially inventory and revenue
recognition
Ratio Analysis: Practice calculations with various scenarios
Financial Statements: Emphasis on preparation techniques and format knowledge
Company Accounting: Share capital transactions and company law provisions
Auditing Basics: Internal control and audit procedure concepts

Strategic Insights

High-Scoring Potential Areas

1. Accounting Principles & Concepts - Easy marks with proper concept clarity
2. Basic Financial Statements - Predictable question patterns
3. Simple Ratio Calculations - Formula-based questions

Challenging Areas Requiring Deep Study

1. Advanced Accounting Standards - Conceptual and application-based
2. Complex Ratio Analysis - Multi-step calculations
3. Company Law Integration - Legal provisions with accounting treatment
The analysis reveals that UPSC EPFO accounting questions test both theoretical
understanding and practical application, with emphasis on core accounting principles,
financial statement analysis, and contemporary accounting standards. Success requires
balanced preparation covering both fundamental concepts and advanced applications, with
particular attention to EPFO-relevant accounting practices. [1] [2]
⁂

1. https://edutap.in/upsc-epfo/preparation/prepare-general-accounting-principles-for-upsc-epfo/
2. https://edutap.in/upsc-epfo/previous-year-questions/download-eo-ao-2023-pyq/
3. https://www.youtube.com/watch?v=VB6aSxJjHYI
4. https://testbook.com/questions/upsc-epfo-general-accounting-principles-questions--64707679a613c2
ade3fdd0d2
5. https://testbook.com/objective-questions/mcq-on-ratio-analysis--5f916907cdecda6d0d12468b
6. https://testbook.com/objective-questions/mcq-on-financial-statement-analysis--5f9168fd3f9ec5e628ff
4635
7. https://cracktarget.com/2025/07/30/capital-and-revenue-profit-and-losses-and-depreciation-upsc-ep
fo-apfc/
8. https://testbook.com/objective-questions/mcq-on-balance-sheet-statement--5f91688aa03904a227ce5
fbe
9. https://vyasaias.in/wp-content/uploads/2025/03/UPSC-EPFO-APFC-2023-Analysis-1.pdf