Quick & Easy Preparation Tips & Tricks on CA Intermediate - Accounting
Hi there! How’s it going? Your preparations for CA-Intermediate? Oh wait! You haven’t started yet, have you? You may be thinking that the exams are far off and of course you have more than enough time to prepare yourself. But, you never know when time runs out and before you know it, the CA-Intermediate exams will sneak up on you. The syllabus for CA-Intermediate Paper 1- Accounting is nothing short of vast. Also, CA- Intermediate is a comparatively newer exam, introduced by ICAI under the revised scheme. Needless to say, there are more speculations about the exam than specified information.
Rumors have it that CA-Intermediate is a more difficult to crack than CA-IPCC, its former counterpart. Not to instil fear in you or anything, but clearing Accounting can get difficult if you do not set aside enough time for revision and mock tests. Read on to find out why, and what you can do differently to score good marks in CA-Inter Paper-1.
CA-Intermediate – Accounting In a Nutshell
Total marks allotted: [100 marks]
Passing Marks: [40 Marks]
Objective: To develop the ability to apply specific accounting standards and legislations to different transaction, events and in preparation and presentation of financial statement of various entity.
- Important Topics to be Covered:
Unit 1: Accounting Standards- [Weightage (20%-25%),]
i. Process of formulation of Accounting standards including Ind AS (IFRS Coverage standards) and IFRSs;
ii. Convergence vs adoption;
iii. Objectives and concepts of Carve outs;
iv. Framework for preparation and presentation of Financial Statements,
v. Application and extent of Accounting standard.
Unit 2: Company Accounts- [Weightage (25%-30%),]
i. Preparation of financial statements as per Companies Act (Statement of Profit and Loss , balance sheet and Cash flow statement).
ii. Calculation Of managerial Remuneration.
iii. Accounting of Deferred Tax Asset and Deferred Tax liability in line with AS 22; Profit (loss) prior to incorporation ; accounting for bonus issue and rights issue; redemption of preference share and debentures.
Unit 3: Accounting for Special transaction & Special Accounts: [Weightage (30%-35%)] Very Important unit from exam point of view:
- Investment Account: Understand the terms, Classification of investment, computing cost of investment, profit /loss on disposal of investment.
- Insurance claims for loss of stock and loss of profit: Understand the terms loss of profit, Standing charges, and increase cost of working & Computation of Amount of claim for Loss of stock and loss of profit.
- Hire Purchase and installment sale transaction: Understand the Salient features and nature of Hire purchase; journalize hire purchase entries in the books of hire purchaser and hire vendor; Methods of accounting for hire purchase transaction, Calculation and record of repossessed goods and calculating the profit on resale of such goods.
- Department Accounting: allocation of expenditure; Calculation the amount of unrealized profit on unsold inter-departmental stock in hand.
- Branch Accounts: Accounting treatment of independent and dependent branches; methods of charging goods to branches; reconciliation statement of branch and head office after finding the reasons for their disagreement; techniques of foreign Currency translation in case of foreign branches; Differentiate between integral and non-integral foreign branches.
- Accounts from Incomplete records: how to derive capital at two different points of time through statement of affairs; techniques of determining profit by comparing capital at two different point of time; preparing trading and profit and loss account from incomplete records.
Unit 4: Dissolution of partnership firms- [Weightage (15%-20%),]: Piecemeal distribution of assets; Amalgamation of partnership firm; Conversion of partnership firm into a company and Sale to Company; Issues related to accounting in Limited liability Partnership.
How to Score good marks in CA-Inter Paper- 1 Accounting?
Scoring well in any paper in CA-Intermediate depends on hard work and a strategic approach. When it comes to Accounting, students make some mistakes that cost them dearly. Let’s take a look at the common mistakes that students are prone to making, and which keeps them from doing well in this paper.
- Students start preparing late. They undermine the length and breadth of the syllabus
- Students undermine the theory portions since Accounting is a practical subject
- They do not plan their study; even if they come up with a study planner, they forget about it midway
- They prepare in a haywire manner without considering the weightage of the topics
- They do not make the extra effort of maintaining a concept register
- They ‘read’ the sums from solved examples instead of practicing it hands-on
- They go for selective study, and have a tendency to skip ‘unimportant’ chapters
Preparation tips for CA Intermediate Paper 1 Accounting
- Revise the more important topics at least 3 times – It is crucial to do repeated rounds of revision for this subject as there is too much to remember, and it is easy to get confused. While revising, refer to your notes and practice manuals. Don’t start re-reading from the study material all over again.
- Appear for at least one mock test before attempting the real exam. Mock tests are the best way to check preparedness for the exam. In any case, it is better to make mistakes before the real exam and rectify them while there’s still time.
- Do not start with new topics too close to the exam –Like we said start early, complete as much as possible and revise what you know. But don’t start with absolutely untouched topics just a few days before the exam.
Accounting – The importance of working notes
For papers like Accounting, working notes are an integral part of the numerical. Not all questions will require it but for those questions that do, you must treat working notes as a part of the answer itself and not just a mere addition. Illegible and incomplete working notes will create a bad impression the examiner and invariably lead to deduction of marks. So, keep it neat and show all calculations. Do not leave anything incomplete.
Some Additional tips:
- While studying, understand concepts and underlying principles and assumptions.
- While writing answers, use proper and prescribed format for presentation of accounts.
- Answer questions with due emphasis on the provision of accounting standards.
- Accounting Standards forms one of the most important and scoring topics in our syllabus. This includes IND AS and IFRS; concepts vs. Adoption; objective and concepts of carve outs. It accounts for 20 marks in our exam. We shall make sure that we are well prepared for these which can be easily be done by practicing related questions and understanding the rationale.
- State assumptions in the form of notes clearly.
- Make sure you use proper formats and headings
- Begin your numerical with what is already given in the question and by stating what is required. Then proceed to your computations and working notes necessary to arrive at the solutions.
Follow the preparation tips and tricks in this blog post, and keep coming back to revisit the pointers from time to time. We are sure you will score well in CA-Inter Paper-1 Accounting.