Study Tips For CA CPT

Will you please give here tips for preparation for CA Common Proficiency test (CPT) of Institute of Chartered Accountants of India (ICAI) ?

[Kiran Chandar]

Common Proficiency Test commonly known as CPT is admission test to CA course, conducted by ICAI in June and December.

Tips for study :

Make schedule .

Jon coaching classes .

Use short tricks to solve problems .

Try to do calculation mentally .

Clear basic concepts

Learn formulas .

Practice more and more .

Solve last year papers .

CA CPT Exam Pattern:

The FOUR hour test consists of objective questions ranging from Fundamentals of Accounts, Mercantile Law, General Economics and Quantitative aptitude.

CPT exam is divided into two sessions containing 100 questions in each.

Out of the 100 questions from Session I, 60 are from fundamental Of Accounts and 40 from Mercantile Law.

Each right answer carries 1 mark each and for every wrong answer ¼ mark gets deducted.

Session II contains 50 questions from General Economics and 50 from Quantitative Aptitude out of the total of 100 questions.

Exam timings and time allocation
Total Marks – 200
Mode of examination – Objective
No. of Questions – 200
Duration - 4 hours (two sessions of 2 hours each)
Timing
Session I (10.00 am to 12.00 am)
Session II (2.00pm to 4.00pm)

CA CPT exam syllabus

SESSION I
Section A: Fundamentals of Accounting (60 Marks)

Objective:To develop conceptual understanding of the fundamentals of financial accounting system.

Contents:

1. Theoretical Framework

(a) Meaning and Scope of accounting

(b) Accounting Concepts, Principles and Conventions

(c) Accounting Standards –concepts, objectives, benefits

(d) Accounting Policies

(e) Accounting as a measurement discipline –valuation principles, accounting estimates

2. Accounting Process:Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures,Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof.

3. Bank Reconciliation Statement

4. Inventories:Basis of inventory valuation and record keeping.

5. Depreciation accounting:Methods, computation and accounting treatment of depreciation, Change in depreciation methods.

6. Preparation of Final Accounts for Sole Proprietors

7. Accounting for Special Transactions

(a) Consignments

(b) Joint Ventures

(c) Bills of exchange and promissory notes

(d) Sale of goods on approval or return basis.

8. Partnership Accounts:Final accounts of partnership firms –Basic concepts of admission, retirement and death of a partner including treatment of goodwill.

9. Introduction to Company Accounts:Issue of shares and debentures, forfeiture of shares, reissue of forfeited shares, redemption of preference shares

Section B: Mercantile Laws (40 Marks)

Objective:To test the general comprehension of elements of mercantile law

Contents:

1. The Indian Contract Act , 1872:An overview of Sections 1 to 75 covering the general nature of contract , consideration , other essential elements of a valid contract , performance of contract and breach of contract.

2. The Sale of Goods Act, 1930: Formation of the contract of sale –Conditions and Warranties –

Transfer of ownership and delivery of goods –Unpaid seller and his rights.

3. The Indian Partnership Act, 1932:General Nature of Partnership–Rights and duties of partners –Registration and dissolution of a firm.

SESSION –II
Section C: General Economics (50 Marks)

Objective:To ensure basic understanding of economic systems, economic Behavior of individuals and Organizations.

Contents:

(I) Micro Economics:

1. Introduction to Micro Economics

(a) Definition, scope and nature of Economics

(b) Methods of economic study

(c) Central problems of an economy and Production possibilities curve.

2. Theory of Demand and Supply

(a) Meaning and determinants of demand, Law of demand and Elasticity of demand ─Price, income and cross elasticity

(b) Theory of consumer’s behavior– Marshallian approach and Indifference curve approach

(c) Meaning and determinants of supply, Law of supply and Elasticity of supply.

3. Theory of Production and Cost

(a) Meaning and Factors of production

(b) Laws of Production – The Law of variable proportions and Laws of returns to scale

(c) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

4. Price Determination in Different Markets

(a) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

(b) Price determination in these markets.

(II) Indian Economic Development

5. Indian Economy –A Profile

(a) Nature of the Indian Economy

(b) Role of different sectors –Agriculture, Industry and Services in the development of the Indian economy,their problems and growth

(c) National Income of India –Concepts of national income, Different methods of measuring national income, Growth of national income and per capital income in various plans.

(d) Basic understanding of tax system of India –Direct and Indirect Taxation

6. Select Aspects of Indian Economy

(a) Population –Its size, rate of growth and its implication for growth

(b) Poverty –Absolute and relative poverty and main programs for poverty alleviation

(c) Unemployment –Types, causes and incidence of unemployment

(d) Infrastructure ─ Energy, Transportation, Communication, Health and Education

(e) Inflation

(f) Budget and Fiscal deficits

(g) Balance of payments

(h) External debts.

7. Economic Reforms in India

(a) Features of economic reforms since 1991

(b) Liberalization, Privatization and Disinvestment

(c) Globalization

8. Money and Banking

(a) Money –Meaning and functions

(b) Commercial Banks–Role and functions

(c) Reserve Bank of India –Role and functions, Monetary Policy

Section D: Quantitative Aptitude(50 Marks)

Objective:To test the grasp of elementary concepts in Mathematics and Statistics and application of the same as useful quantitative tools.