CAT SYLLABUS 2012

THE INSTITUTE OF COST ACCOUNTANTS OF

INDIA
(STATUTORY BODY UNDER AN ACT OF PARLIAMENT)

NOTIFICATION
FOR INTRODUCTION OF
CERTIFICATE IN ACCOUNTING TECHNICIANS

SYLLABUS 2012

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA

(STATUTORY BODY UNDER AN ACT OF PARLIAMENT)
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

12, SUDDER STREET, KOLKATA-700 016.
Kolkata, the 1st January, 2013
NOTIFICATION
No. CMA (4)/2013: In pursuance of sub-regulation (b) of Regulation 20B and Regulations 30 &
31of the Cost and Works Accountants Regulations, 1959, it is hereby notified that in exercise of
powers conferred by clause (a) of sub-section (2) of Section 15 of the Cost and Works Accountants
Act, 1959, the Council of the Institute of Cost Accountants of India at its 277th meeting held on 1st
October, 2012 has approved the Syllabus 2012 for introduction w.e.f. 1st January, 2013 as annexed
in Annexure 1 & 2. Students admitted to the Courses of the Institute, w.e.f. 1st January, 2013 shall
pursue Courses under Syllabus 2012.
The First Examination under Syllabus 2012 shall be conducted in December 2013.
The Last Examination under Syllabus 2008 shall be conducted in June 2014.
Examination under both the Syllabi shall be conducted simultaneously as under:
Examination to be held in
Examinations to the held under
June 2013
CAT Syllabus 2008
December 2013
CAT Syllabus 2008
CAT Syllabus 2012
June 2014
CAT Syllabus 2008
CAT Syllabus 2012
December 2014 and onwards(until further notification)
CAT Syllabus 2012
This issues with the approval of the competent authority.

Kaushik Banejee
Additional Secretary

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

Summary of the Course:
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)
(B)
(C )
(D)

Fundamentals of computers
Filing of statutory returns
Introduction to costing principles and preparation of cost statements
5-days Orientation Programme

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CAT SYLLABUS 2012

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 students 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
Fundamentals of Financial Accounting-(Accounting Paper I)
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
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CAT SYLLABUS 2012

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

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

Paper II: Applied Business and Industrial Laws
Syllabus Structure
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 students 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

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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.

Sl. No

Course

Weightage

Pay Roll Accounting

25%

Store Accounting

25%

Sales Accounting

25%

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 deductionsresponsibility 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.
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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.
2.
3.
4.

Meaning of Asset Accounting

Current Asset Accounting
Fixed Asset Accounting
Project Accounting

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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:

(A)

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.

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

CENVAT CREDIT
i.
ii.
iii.
iv.
v.
vi.

Background of Cenvat
Cenvat on Inputs / Input Service and Capital Goods
Availment &Utilization of Cenvat Credit
Exempted Goods / services and obligation
Removal of inputs / capital goods
Records / Accounting of Cenvat

Job-Work under Excise

Small Scale Industries and Excise.

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

2. Customs
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

Introduction
Scope
Types of Customs Duties
Valuation under Customs
Customs Procedures
Import Procedure
Export Procedure
Baggage
Exemptions / Refunds

3. 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

Scope
Interstate / Intrastate Sale
Various forms under CST
Returns

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

4. VAT / CST

5. Income Tax

THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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CAT SYLLABUS 2012

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
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA (STATUTORY BODY UNDER AN AC OF PARLIAMENT)

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