|COMMON PROFICIENCY TEST
|(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.|
|(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
|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
|Basis of inventory valuation and record keeping.
|Methods, computation and accounting treatment of depreciation, Change in depreciation methods.
|6.||Preparation of Final Acccounts for Sole Proprietors
|7.||Accounting for Special Transactions|
(b) Joint Ventures
(c) Bills of exchange and promissory notes
(d) Sale of goods on approval or return basis.
|Final accounts of partnerrship 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.