About:
Common Proficiency Test is an entry level examination for admission to the Chartered Accountancy Course.CPT Examination is objective type test comprising of 4 subjects which are: - Fundamentals of Accounting – 60 marks, Mercantile Laws – 40 marks, General Economics – 50 marks Quantitative Aptitude - 50 marks. The CPT Examination is held twice a year on a Sunday in the months of June and December every year. A student must have been registered for the CPT Course with Board of Studies of the Institute on or before 1st April in the case of June Examination and on or before 1st October in the case of December Examination and must have passed 12th Class Examination or already appeared in 12th Class Examination of a recognized Board. Candidates have option to opt for English or Hindi language as medium, for the purpose of question papers booklet while answer sheets are in English Language only. Each student who appears in the CPT Examination is issued a Result Card within two weeks of the declaration of results. A candidate securing 70% and above marks is declared to have passed with Distinction. Merit Certificates are also issued to meritorious students.
Eligibility Criteria
Candidate Should have passed or already appeared in 12th class recognized examination. (Students who are appearing in 12th class examination in March/April of the same year in which CPT is to be held in the month of june are also eligible).
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Syllabus
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
(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, re-issue of forfeited shares, redemption of
preference shares.
Section B: Mercantile Law ( 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.
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
(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 behaviour – 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 capita 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
(III)External debts.
7. Economic Reforms in India
(a) Features of economic reforms since 1991
(b) Liberalisation, Privatisation and Disinvestment
(c) Globalisation.
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.
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
(a) Textual, Tabular & Diagrammatic representation of data.
(b) Frequency Distribution.
(c) 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
Biomial, 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.
