CPT (Common Proficiency Test)
Common Proficiency Test (CPT) is an entry level test for the CA course. It is a test of four subjects— Fundamentals of Accounting, Mercantile Laws, General Economics and Quantitative Aptitude. This test is of 200 marks. This test is divided into two sessions of two hours each with a break in between. CPT is an objective type test with negative marking.
Test Pattern and Subjects
SESSION I (Two sections, two hours, 100 marks)
Section A: Fundamentals of Accounting (60 marks)
Section B: Mercantile Laws (40 marks)
SESSION II (Two sections, two hours, 100 marks)
Section C: General Economics (50 marks)
Section D: Quantitative Aptitude (50 marks)
Registrations
The registration and tuition fee for Common Proficiency Test is Rupees 6,000/* payable to Institute of Chartered Accountants of India (ICAI).
The registration for CPT Course will be valid for a period of 3 years from the date the student becomes eligible to appear in CPT exam for the first time or for the period so long the student continues to appear in the examination regularly whichever is later. For other details related to registration, lapsation, reregistration and switch over from PEI to CPT,
please visit
http://www.icai.org
SYLLABUS FOR COMMON PROFICIENCY TEST (CPT)
(One paper – Four hours – 200 Marks)
Level of Knowledge: Basic 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
 Theoretical Framework
 Meaning and Scope of accounting
 Accounting Concepts, Principles and Conventions
 Accounting Standards – concepts, objectives, benefits
 Accounting Policies
 Accounting as a measurement discipline – valuation principles, accounting estimates
 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.
 Bank Reconciliation Statement
 Inventories
Basis of inventory valuation and record keeping.
 Depreciation accounting
Methods, computation and accounting treatment of depreciation, Change in depreciation methods.
 Preparation of Final Accounts for Sole Proprietors
 Accounting for Special Transactions
 Consignments
 Joint Ventures
 Bills of exchange and promissory notes
 Sale of goods on approval or return basis.
 Partnership Accounts
Final accounts of partnership firms – Basic concepts of admission, retirement and death of a partner including treatment of goodwill.
 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
 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.
 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.
 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
 Introduction to Micro Economics
 Definition, scope and nature of Economics
 Methods of economic study
 Central problems of an economy and Production possibilities curve.
 Theory of Demand and Supply
 Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity
 Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach
 Meaning and determinants of supply, Law of supply and Elasticity of supply.
 Theory of Production and Cost
 Meaning and Factors of production
 Laws of Production – The Law of variable proportions and Laws of returns to scale
 Concepts of Costs ─ Shortrun and longrun costs, Average and marginal costs, Total, fixed and variable costs.
 Price Determination in Different Markets
 Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
 Price determination in these markets.
 Indian Economy – A Profile
 Nature of the Indian Economy
 Role of different sectors – Agriculture, Industry and Services in the development of the Indian economy, their problems and growth
 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.
 Basic understanding of tax system of India – Direct and Indirect Taxation
 Select Aspects of Indian Economy
 Population – Its size, rate of growth and its implication for growth
 Poverty – Absolute and relative poverty and main programs for poverty alleviation
 Unemployment – Types, causes and incidence of unemployment
 Infrastructure ─ Energy, Transportation, Communication, Health and Education
 Inflation
 Budget and Fiscal deficits
 Balance of payments
 External debts
 Economic Reforms in India
 Features of economic reforms since 1991
 Liberalisation, Privatisation and Disinvestment
 Globalisation.
 Money and Banking
 Money – Meaning and functions
 Commercial Banks – Role and functions
 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
 Ratio and proportion, Indices, Logarithms
 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.
 Inequalities
Graphs of inequalities in two variables ─ common region.
 Simple and Compound Interest including annuity ─ Applications
 Basic concepts of Permutations and Combinations
 Sequence and Series – Arithmetic and geometric progressions
 Sets, Functions and Relations
 Limits and Continuity ─ Intuitive Approach
 Basic concepts of Differential and Integral Calculus (excluding trigonometric functions)
 Statistical description of data
 Textual, Tabular & Diagrammatic representation of data.
 Frequency Distribution.
 Graphical representation of frequency distribution – Histogram, Frequency Polygon, Ogive
 Measures of Central Tendency and Dispersion
Arithmetic Mean, Median – Partition Values, Mode, Geometric Mean and Harmonic, Mean, Standard deviation, Quartile deviation
 Correlation and Regression
 Probability and Expected Value by Mathematical Expectation
 Theoretical Distributions
Binomial, Poisson and Normal.
 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.
 Index Numbers
Preparatory sessions for CPT
Subject 
No of Classroom sessions 
Revision Sessions 
CPT Test Series 
Fundamental Of Accounts 
75 
20 
Yes 
Mercantile Law 
47 
10 
Yes 
General Economics 
44 
10 
Yes 
Quantitative Aptitude 
80 
20 
Yes 
Study Material
Packet  1 
Fundamentals of Accounting  1 
General Economics 1 
Mercantile Law 1 
Quantitative Aptitude  1 

Packet  2 
Fundamentals of Accounting  2 
General Economics  2 
Mercantile Law  2 
Quantitative Aptitude  2 

Packet  3 
Mock CPT Tests  1 to 10 
Answer Keys  1 to 10 

Additional material:
Booklets for tests as well as classroom exercises would also be available with the material itself. The material for the revision sessions will also be provided separately.
The dates for the tests would be communicated once the dates for CPT have been declared.