CA CPT Syllabus

CA-CPT is one of the most popular exams held in our country for a professional career in CA. The entry level test to Chartered Accountancy Course, CA-CPT, is held twice a year for the students registered for Common Proficiency Course. The CA-CPT syllabus covers all the subjects required for the test. It is a test of four subjects, viz. Accountancy, Mercantile Laws, General Economics and Quantitative Aptitude with an objective of testing subject knowledge in these subject areas. The detailed syllabus of CA-CPT has been provided below.

COMMON PROFICIENCY TEST

SYLLABUS

One Paper, Two Sessions 200 Marks
Session I:
Section A: Fundamentals of Accounting 60 Marks
Section B: Mercantile Laws 40 Marks
Session II:
Section C: General Economics 50 Marks
Section D: Quantitative Aptitude 50 Marks
Common Proficiency Test (CPT)
(One paper – Four hours – 200 Marks)

Level of Knowledge: Working Knowledge

SESSION – I
(Two Sections– Two hours – 100 Marks)
Section A: Fundamentals of Accounting (60 Marks)

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

Contents

1. Theoretical Framework
      i. Meaning and Scope of accounting
      ii. Accounting Concepts, Principles and Conventions
      iii. Accounting Standards – concepts, objectives, benefits
      iv. Accounting Policies
      v. 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
      i. Consignments
      ii. Joint Ventures
      iii. Bills of exchange and promissory notes
      iv. 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, re-issue 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 India Partnership Act, 1932:
General Nature of Partnership – Rights and duties of partners – Registration and dissolution of a firm

SESSION – II
(Two Sections– Two hours – 100 Marks)
Section C: General Economics (50 Marks)

Objective:
To ensure basic understanding of economic systems, economic behaviour of individuals and organizations

Contents

I. Micro Economics

1. Introduction to Micro Economics
      i. Definition, scope and nature of Economics
      ii. Methods of economic study
      iii. Central problems of an economy and Production possibilities curve

2. Theory of Demand and Supply
      i. Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity
      ii. Theory of consumer ’s behaviour – Marshallian approach and Indifference curve approach
      iii. Meaning and determinants of supply, Law of supply and Elasticity of supply

3. Theory of Production and Cost
      i. Meaning and Factors of production
      ii. Laws of Production – The Law of variable proportions and Laws of returns to scale
      iii. Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs

4. Price Determination in Different Markets
      i. Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
      ii. Price determination in these markets.

II. Indian Economic Development

5. Indian Economy – A Profile
      i. Nature of the Indian Economy
      ii. Role of different sectors – Agriculture, Industry and Services in the development of the Indian economy, their problems and growth
      iii. National Income of India – Concepts of national income, Different methods of measuring national income, Growth of national income and per capita income in various plans
      iv. Basic understanding of tax system of India – Direct and Indirect Taxation

6. Select Aspects of Indian Economy
      i. Population – Its size, rate of growth and its implication for growth
      ii. Poverty – Absolute and relative poverty and main programs for poverty alleviation
      iii. Unemployment – Types, causes and incidence of unemployment
      iv. Infrastructure ─ Energy, Transportation, Communication, Health and Education
      v. Inflation
      vi. Budget and Fiscal deficits
      vii. Balance of payments
      viii. External debts

7. Economic Reforms in India
      i. Features of economic reforms since 1991
      ii. Liberalisation, Privatisation and Disinvestment
      iii. Globalisation

8. Money and Banking
      i. Money – Meaning and functions
      ii. Commercial Banks – Role and functions
      iii. 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

Contents

1. Ratio and proportion, Indices, Logarithms

2. Equations
Linear – simultaneous linear equations up to three variables, quadratic and cubic equations in one variable, equations of a straight line, intersection of straight lines, graphical solution to linear equations

3. Inequalities
Graphs of inequalities in two variables ─ common region

4. Simple and Compound Interest including annuity ─ Applications

5. Basic concepts of Permutations and Combinations

6. Sequence and Series – Arithmetic and geometric progressions

7. Sets, Functions and Relations

8. Limits and Continuity ─ Intuitive Approach

9. Basic concepts of Differential and Integral Calculus (excluding trigonometric functions)

10. Statistical description of data
      i. Textual, Tabular & Diagrammatic representation of data.
      ii. Frequency Distribution.
      iii. Graphical representation of frequency distribution – Histogram, Frequency Polygon, Ogive

11. Measures of Central Tendency and Dispersion
Arithmetic Mean, Median – Partition Values, Mode, Geometric Mean and Harmonic, Mean, Standard deviation, Quartile deviation

12. Correlation and Regression

13. Probability and Expected Value by Mathematical Expectation

14. Theoretical Distributions
Binomial, Poisson and Normal

15. Sampling Theory
Basic Principles of sampling theory, Comparison between sample survey and complete enumeration, Errors in sample survey, some important terms associated with sampling, Types of sampling, Theory of estimation, Determination of sample size

16. Index Numbers