CAT SYLLABUS 2012

Foundation Course (Entry Level) Part-I

Paper I: Fundamentals of Financial Accounting
Paper II Applied Business and Industrial Laws
Paper III Financial Accounting - 2
Paper IV: Statutory Compliance

Delivery Strategy 

Class Room oral coaching

Learning Strategy 

Class Room Learning
On-line/off-line self paced studies

ASSESSMENT STRATEGY 

On line/off line periodical self-assessment
Course end examination- Multiple Choice Questions
To be answered in OMR answer sheets/on-line

Competency Level (Part-II)

(A) Fundamentals of computers
(B) Filing of statutory returns
(C ) Introduction to costing principles and preparation of cost statements
(D) 5-days Orientation Programme

FOUNDATIONCOURSE (ENTRY LEVEL) PART-I

Paper I: Fundamentals of Financial Accounting 

OBJECTIVES 

To provide an insight into the Fundamentals of Financial Accounting and its principles.

Learning Aims 

The Syllabus aims to test the student’s ability to:

Understand and explain the conceptual framework of Accounting

Prepare Accounts for various entities under different situations

Skill set required 

Level A: Requiring the skill levels of knowledge and comprehension

CONTENTS

1. Process of Accounting
2. Reconciliation Statement
3. Accounting for Depreciation
4. Preparation of Final Accounts
5. Accounting for Special Transactions
6. Cash and Fund Flow Statements

Section A: Fundamentals of Financial Accounting 

1. Process of Accounting 
(a) Basic Accounting Formulas and Accounting Terminologies
(b) Capital and Revenue transactions- capital and revenue expenditures, capital and revenue receipts
(c) Measurement, Valuation and Accounting estimates
(d) Double entry system, Books of prime entry, Subsidiary Books
(e) Recording of Cash and Bank transactions
(f) Voucher preparations
(g) Preparation of Ledger Accounts
(h) Preparation of Trial Balance- interpretation and usefulness
(i) Rectification of Errors

2. Reconciliation Statements 
(a) Bank Reconciliation Statement
(b) Receivables / Payables Reconciliation Statement

3. Accounting for Depreciation 
Methods, computation and Accounting treatment

4. Preparation of Final Accounts 
(a) Of a Profit making concern ( for sole proprietorship concern and partnership firm only)
(i) Preparation of Trading Account, Profit & Loss Account and Balance Sheet
(ii) Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors and provision for discount on creditors
(b) Of a Not-for- Profit making concern
(i) Preparation of Receipts and Payments Account;
(ii) Preparation of Income and Expenditure Account
(iii) Preparation of Balance Sheet

5. Accounting for Special Transactions 
(a) Bills of Exchange
(b) Consignment
(c) Joint Venture
(d) Sale of goods on approval or return basis

6. Cash and Fund Flow Statements 

Paper II: Applied Business and Industrial Laws 

OBJECTIVES 

To gain basic knowledge in Laws and Ethics to understand the concepts of legal compliance
requirements from entry level executives.

Learning Aims 

 The syllabus aims to test the student’s ability to:

Acquire adequate knowledge of the basic concepts of laws

Understand the basic knowledge of legalcompliance and requirements

Skill sets required 

Level A: Requiring the skill levels of knowledge and comprehension
Note: Subjects related to applicable statutes shall be read with amendments made from time
to time.

Section A : Fundamentals of Applied Commercial Laws 70% 
1. Laws of Contracts
2. Laws relating to Sale of Goods
3. Banking Laws and operations
4. Partnership Act & Limited Liability Partnership

Section B: Fundamentals of Applied Industrial Laws 30% 
5. Factories Act,1948 & Shop Act
6. Payment of Wages Act, 1936 and Minimum Wages Act,1948
7. The Employees’ State Insurance Act, 1948
8. Provident Fund Act
9. Payment of Bonus Act

10. Payment Gratuity Act

Section A: Fundamentals of Applied Commercial Laws [70 marks] 

1. Laws of Contracts 
(a) Essential elements of a contract, offer and acceptance
(b) Void and voidable agreements
(c) Consideration, legality of object and consideration
(d) Capacity of Parties, free consent
(e) Quasi-contracts, contingent contracts, termination or discharge of contracts

2. Laws relating to Sale of Goods 
(a) Definition
(b) Transfer of ownership
(c) Performance of the Contract of Sale

3. Banking Laws and operations 
(a) Basics of Banking laws and regulations
(b) Concept of working capital and term funds
(c) Acceptance and negotiation
(d) Rights and liabilities of Parties
(e) Dishonor of a Negotiable Instrument
(f) Banking procedures and negotiable instruments

4. (I) Partnership Act 
a. Nature of Partnership
b. Rights and Liabilities of Partners
c. Dissolution of Firms
(II) Limited Liability Partnership 
a. Features
b. Difference between Partnership and LLPs
c. Difference between LLPs and Companies

Section B: Fundamentals of Industrial Laws [30 marks] 

5. Factories Act,1948 & Shop Act 
(a) Objective, Scope
(b) Applicability of Factories Act,1948

6. Payment of Wages Act, 1936 and Minimum Wages Act,1948 
(a) Objective , Scope
(b) Applicability of Payment of Wages Act, 1936 and Minimum Wages Act,1948

7. The Employees’ State Insurance Act, 1948 
a) Objective, scope
b) Applicability of ESI Act, 1948

8. Provident Fund Act 
a) Objective, scope
b) Applicability of PF Act

9. Payment of Bonus Act 
a) Objective, scope
b) Applicability of Bonus Act

10. Payment of Gratuity Act 
a) Objective, scope
b) Applicability of Gratuity Act, 1948

Paper III: Financial Accounting– 2

Objective: 

To train the students on Pay Roll Accounting, Store Accounting, Sales Accounting
and Asset Accounting enable them to gain skills in these areas.

A Pay Roll Accounting 25%
B Store Accounting 25%
C Sales Accounting 25%
D Asset Accounting 25%

(A) Pay Roll Accounting: 

1. Concept of Pay Roll Accounting
2. Process of Pay Roll Accounting
Pay/Salary, Gross-earnings, dedications- statutory and non-statutory deductions responsibility of the employers
3. Statutory Deductions- EPF/ESI/Income Tax/Professional Tax/other and its accounting.
4. Accounting of Bonus and Gratuity

(B) Store Accounting 

(i) Pricing of purchase of materials
(ii) Issue of materials from stores.
(iii)Pricing of returned materials
(iv)Issue of materials to other formations
(v) Issue of materials for disposals

(C) Sales Accounting 

1. Recognize revenue items at the proper time on the income statement.
2. Account for cash and credit sales.
3. Compute and interpret sales returns and allowances, sales discounts, and bank credit card sales.
4. Manage cash and its importance to the company.
5. Estimate and interpret uncollectible accounts receivable balances.
6. Assess the level of accounts receivable.
7. Develop and explain internal control procedures.

(D) Asset Accounting 

1. Meaning of Asset Accounting
2. Current Asset Accounting
3. Fixed Asset Accounting
4. Project Accounting

Paper IV: Statutory Compliance 

OBJECTIVES 

To gain understanding and to provide working knowledge of procedures, records and returns
under tax laws and companies act.

Learning Outcomes 

On completion of their studies students should be able to:
• Know the basic principles underlying direct as well as indirect taxes.
• Know various records and returns under tax laws.
• Know statutory compliance under companies act.

(A) Concept of Taxation 

1. Central Excise 

• Concept of Excise
• Laws relating to Excise
• Goods Manufactured & Manufacturer
• Classification of goods
• Valuation under central excise.
• Basic Procedures and Records
i. Registration
ii. Storage & Accounting
iii. Invoice
iv. Excise Duty Payment
v. Periodic Returns
vi. Export Procedures
vii. Export under Bond and Export under Rebate
viii. Bringing goods in Factory for repairs

2.CENVAT CREDIT 

i. Background of Cenvat
ii. Cenvat on Inputs / Input Service and Capital Goods
iii. Availment &Utilization of Cenvat Credit
iv. Exempted Goods / services and obligation
v. Removal of inputs / capital goods
vi. Records / Accounting of Cenvat
• Job-Work under Excise
• Small Scale Industries and Excise.

3. Customs 

i. Introduction
ii. Scope
iii. Types of Customs Duties
iv. Valuation under Customs
v. Customs Procedures
vi. Import Procedure
vii. Export Procedure
viii. Baggage
ix. Exemptions / Refunds

4. Service Tax 

• Background
• Nature of Service Tax
• Service Provider and receiver
• Value of service
• Negative List
• Procedure
i) Registration
ii) Billing
iii) Payment
iv) Returns
• Export & Import of Services

5. VAT / CST 

• Scope
• Interstate / Intrastate Sale
• Various forms under CST
• Returns

6. Income Tax 

• Basic Concepts
i) Assessment Year
ii) Previous Year
iii) Person
iv) Assesse
v) Income
vi) Residence / Non-residence, etc...
• Income exempt from Tax
• Salary
• House Property
• Profits & Gains of Business or Profession
• Assessments
• TDS
• Returns

COMPETENCY LEVEL PART-II

Objective: 

The Courses under Competency Level will enable the students to have application oriented learning
and enhance their skill sets in managing the functions of entry level accounting and other related areas.

Delivery Strategy 

Class Room Training and hands on Training on Computers

Learning Strategy 

Class Room Learning
On-line/off-line self paced studies

ASSESSMENT STRATEGY 

On line periodical self-assessment
Course end on-line assessment.

(A) Fundamentals of Computers 

(i) Hardware
(ii) Software
(iii) Peripherals
(iv) Microsoft Windows
(v) Microsoft Office
(vii) Microsoft Excel
(viii) Computerized Accounting- Tally ERP 9.0

(B) Filing of Statutory Returns 

(i) Income Tax
(ii) TDS
(iii) Service Tax
(iv) VAT/GST
(v) PF
(vi) ESI
(vii) Professional Tax
(viii) Forms & Returns under MCA 21

(C) Introduction to Costing Principles &Preparation of Cost Statements

a) Cost Data collection, Cost Sheet formats,
b) Preparation of Cost Sheets (historical cost sheets and estimated cost sheets)
c) preparation of cost sheets leading to project Accounting/controls)

(D) Five day Orientation Program