COMMON PROFICIENCY TEST (CPT Syllabus)
One Paper, Two Sessions 200 Marks
Section A: Fundamentals of Accounting 60 Marks
Section B: Mercantile Laws 40 Marks
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: 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.
- 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
- 7. 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
- Micro Economics
- 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.
(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
- 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
(f) Budget and Fiscal deficits
(g) Balance of payments
(h) External debts.
- Economic Reforms in India
(a) Features of economic reforms since 1991
(b) Liberalisation, Privatisation and Disinvestment
- 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 )
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
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