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)
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, re-registration and switch over from PE-I 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)
To develop conceptual understanding of the fundamentals of financial accounting system.
- 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
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
- 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, re-issue of forfeited shares, redemption of preference shares.
Section B: Mercantile Laws (40 Marks)
To test the general comprehension of elements of mercantile law
- 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)
To ensure basic understanding of economic systems, economic behaviour of individuals and organizations.
- 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 ─ Short-run and long-run 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
- Budget and Fiscal deficits
- Balance of payments
- External debts
- Economic Reforms in India
- Features of economic reforms since 1991
- Liberalisation, Privatisation and Disinvestment
- 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)
To test the grasp of elementary concepts in Mathematics and Statistics and application of the same as useful quantitative tools.
- Ratio and proportion, Indices, Logarithms
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.
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
||No of Classroom sessions
||CPT Test Series
|Fundamental Of Accounts
|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
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.