Preparing for CA PCC - Self Study

PREPARING FOR MAY/NOVEMBER 2011 PCC

(Especially for Self Preparing Students for May/Nov 2011 Examinations)

| DHIRAJ A. RAMCHANDANI |

INTRODUCTION

Ok then, after finals, I think its the time to work for PCC students as well. After all, its the mid stage or rather one of the most important stages of CA studies. So its very important to pay special attention at this stage. Similar to finals, here too students are always confused regarding time allocation to the studies.

Generally, it has been now the practice of students to go with one group only in the exams, because its been the psychology of students that as syllabus is very huge and they cannot do it in one sitting. But friends, its not so, because if you fear at this PCC/IPCC level itself, that to because of the syllabus content, trust me FINALS has lot of things to scare you than.

GENERAL INSTRUCTIONS

The major distraction for PCC students has been articleship alongwith coaching or without coaching. A normal student or rather an average student fails to understand for dealing studies alongwith the articleship. Because till CPT level, none of the students have experienced any of such things that at one hand they are getting practical training in their office, which is similar to a job only and on the other hand they need to deal with their studies, which is tough and large.

Some Points to be kept in mind for every PCC student before we move on further :

• PCC is a backbone of CA.

  
  

• What youve performed in CPT/PE-I is immaterial for PCC, and FINALS is not yet come.

  
  

• So whatever you can do is in PCC only.

  
  

• Every concept, every topic & every aspect of subject can be understood at this stage only. Because FINALS wont allow you to understand, but only to implement what have you learnt at this stage

  
  

• So, its a request to all you freshers that please dont ignore any topic or rather leave it simply, because at the end, it is going to help you only.

  
  

TIME ALLOCATION

Generally, I believe, 4-5 months time is sufficient for any average student as well to prepare for PCC exams, without any previous coaching.

Please refer my article on PREPARING FOR CA FINAL SELF STUDY to get the best way of allocating these 4-5 months collectively or alongwith the articleship.

Anyways, lets switch over to individual subjects and see how they are to be dealt. Hereby, Ill be considering as 4 months of studies and 1 month for revision. So that means in all 5 months of study plans. And I personally feel, 4 months are more than enough, and especially all the time allocations mentioned below are really sufficient for every subject. Remember one thing that now you are in PCC, so you cannot expect to study slow and getting everything easily. At this level, a fresher finds it difficult at the end to deal with preparations, better is you put on your hard work from the very beginning. So start with your studies as soon as you get your study leave from the office. Dont waste any time.

First Group (2 months, i.e approx. 60 Days)

• Advanced Accounting 25 Days

• Auditing & Assurance 15 Days

• Law, Ethics & Communication - 20 Days

Second Group (2 months, i.e approx. 60 Days)

1. Try to finish both these subjects within - 45 days

2. Cost Accounting & Financial Management 20-25 Days

3. Taxation 20-25 Days

4. Information Technology & Strategic Management 15 Days 

And if at all, anyone feels that he/she should take two subjects a day and dont want to go with above strategy of finishing off one subject first and considering other later. Then in that case, go by HOUR-SYSTEM. For e.g., in group I, audit and law takes in all 30 days. So u can finish off these both subjects in just one month on hourly basis, i.e divide your every day in 3 parts on hourly basis and allot one part to audit and 2 parts to law. Like if you studying 6 hours a day, then study audit for two hours and law for remaining four hours, and accordingly finish both the subjects within one month.

Anyways, let us concentrate on group wise preparations.

FIRST GROUP:

As such, result of this group is always better than the second group (similar to FINALS). And reason is very obvious, ACCOUNTS is meant to be scoring subject, and AUDIT-LAW, though are theoretical, case studies in each subject becomes scoring.

Each subject is supposed to be done thoroughly, as basics of PCC level are helpful at FINALS.

So, I suggest all of you to concentrate more on this group as :

• This group has greater chances of higher results, and

• It is comparatively easier than the other group.

≈ ADVANCED ACCOUNTING (ACCOUTNS) ≈

• Read the latest edition of Padhuka or if one is going for Nov 11 attempt, then practice can be done from B.M. Agrawal too.

• Read Suggested answers from Nov 2002 [Alternatively one can read ICAI Compilation for Advanced Accounting (May, 1996 November, 2006)]

• Read the latest edition of Taxmann (D.S. Rawat) for Accounting standards (June 2010 Edition for Nov 2010 attempt). It will be useful for Advanced Auditing Paper also.

• Do all problems given in ICAI Material (Some problems will be covered in Padhuka).

Compulsory questions in the Examination:

One question each from 3 chapters, namely -

• Partnership Accounts

• Departmental/Branch Accounts

• Accounting for Amalgamations and External Reconstructions

In total on an average 40 marks

Other Important topics:

• Accounting for Not for Profit Institutions (Theory is also Important)

• Final Accounts of Insurance/Banking/Electricity Companies

• Managerial Remuneration

• Computerized Accounting

• Investment Accounts & Self Balancing of Ledgers

• Important Accounting Standards 2, 3, 6, 9, 10, 11, 12, 16, 19, 20,26 (These ASs are also important for Auditing Paper. Generally problems from ASs in thick letters will be given in Accountancy paper).

≈ AUDITING & ASSURANCE (AUDIT) ≈

• Read the latest edition of Padhuka. [Imp Note : Read compulsorily past examinations questions given in that book.]

• Read Suggested Answers from Nov. 2002 [Alternatively one can read ICAI Compilation of suggested Answers for Advanced Auditing (May, 2000 November, 2006)]

One can safely ignore the following chapters-

Audit Sampling & Risk, Audit Evidence, Types of Audit & Company Audit of Share Capital.

Important Chapters:

• Companies Audit Appointment, Duties etc (15-20 Marks)

• EDP Audit (Minimum 5 Marks)

• Audit Report (Especially AAS-28, Sec. 227(1A), Sec. 227 (2) & (3) and CARO, 2003 including Statement on the Companies (Auditors Report) Order, 2003 given in ICAI Material) [Minimum 5 Marks]

• Government / Special Audits [Minimum 5 Marks]

• Audit of Income/Expenditure & Assets/Liabilities [Minimum 10 Marks]

• And finally, considering all case studies and the auditing standards, the range of marks allocation in exam for the same is 20-50 marks. So, dont ignore them.

Recent Changes:

• New Professional Ethics Chapter as amended by The Chartered Accountants (Amendment) Act, 2006

• Chartered Accountants (Procedure of Investigations of Professional and other Misconduct and Conduct of Cases) Rules, 2007

≈ Corporate Laws, Ethics & Communication (LAW) ≈

A. Corporate Laws [60 Marks]

• This is Scoring Subject in Group 1

• Read the latest edition of Padhuka

• This book is ultimate book.  Read compulsorily all the CA examination Questions given at the end of each chapter in that book.

• One can also go for N.D. KAPOOR, but I dont think so desired output will be obtained here.

Important Chapters:

• The most important chapter in LAW is THE COMPANIES ACT [It fetches 30 Marks] Following are the most important topics of this chapter.

      Company General Meetings [10-20 Marks]

      Each question from any of the following important topics is asked for 5 Marks :

1.      Incorporation, Promoters, Pre-incorporation, etc

2.      MOA & AOA

3.      Prospectus

4.      Shares Issue & Allotment

• The INDIAN CONTRACT ACT, 1872 [10 Marks]

• The NEGOTIABLE INSTRUMENT ACT, 1881 [10 Marks]

• From all the below 3 chapters, each Question of 5 Marks can be asked :

      The Payment of Bonus Act, 1965

      The Employees Provident Fund & Misc. Provisions Act, 1952

      The Payment of Gratuity Act, 1972

 - Maximum 10 Marks.

Recent Changes:

• Competition (Amendment) Act, 2007

• Securities Contracts (Regulation) (Amendment) Act, 2007

B. Ethics [20 Marks]

Important Topics:

• As such the topic itself is very short and easy, but there are some important points that should not be ignored and are really important from EXAM POINT OF VIEW. They are :

      Corporate Governance

      Corporate Social Responsibility

      Consumer Protection

C. Communication [20 Marks]

Important Topics:

• As such the topic itself is very short and easy, but there are some important points that should not be ignored and are really important from EXAM POINT OF VIEW. They are :

      Corporate Communication Aspects - Various letters, deeds [5-15 Marks]

      Essential Of communication [5 Marks]

      Group Dynamics, Corporate Culture [5Marks]

SECOND GROUP:

This group is little odd (as per my view), as I hate ISCA and IDT too I find boring. So this group really needs more attention of students and cannot be neglected or taken for granted like group 1. I cant suggest much in over here, as Im myself preparing it for MAY

≈ Cost Accounting & Financial Management (Cost F.M.) ≈

• Read Padhuka [Maximum Demanded] or Ravi M. Kishore (I personally prefer)

• Do all problems given in ICAI Material.

• Compulsory 3 questions, each from 3 chapters namely, Marginal costing, Standard costing and Budgetary Control.

• Read Suggested Answers from Nov 2002 [Alternatively one can read ICAI Compilation for Cost Management (May 1996 to May 2006)]

• Read compulsorily theory questions given in the past examinations (on an average 30 marks)

• And if possible, try to get notes from some local coaching centre for theory of F.M. Its asked for 10-15 marks, and no book provides it to the optimum.

• Costing is easy subject, it needs laborious work on the practice, so solve as many sums as you can. But dont waste your time on it.

≈ Information Technology & Strategic Management (IT/SM) ≈

• This is Scoring Subject in Group 2.

• Read ICAI material along with ICAI Compilation for IT/SM (May 1996 to November 2006)

• This is the best combination. No need to read anything else

• Atleast read compulsorily all questions given in the Compilation so that you will pass in this paper.

• Moreover, if anyone wants still some material, then PADHUKA is the best book ever made for this subject. Every concept is cleared in detail.

Important Chapters in IT:

• Computer Networks & Networks Systems

• Internet & Other Technologies

• Flow chart [for practice purpose, dont go with Padhuka, it demotivates. Refer ICAI suggested answers for the same, its the only best option.]

• Misc. topics :

      Input/Output Device

      Software

      Number systems (very important)

Important Chapters in SM:

• SM is damn easy subject, one can easily score 40/50 in this subject.

• Here, case studies can be referred from PADHUKA.

• And most important topics from exam point of view are :

      Strategic Management Process

      Strategic Analysis-Formulation-Implementation-Control

• While, Business Environment is just a basic, if one wishes, can avoid that.

≈ TAXATION (DT/IDT) ≈

For DIRECT TAX [75 Marks]

• Read the latest edition (only relevant for the attempt) of Taxmann (Vinod k. Singhania) [I strongly prefer] or Bharat Law House (Girish Ahuja)

• No need to read suggested answers. Instead do past examination questions given at the end of book referred above.

• Have a habit of making notes for every chapter, section wise. That will help you in last day.

Important Chapters:

• Salary or PGBP, are always able to fetch 15-20 Marks in exam, either individually or combined

• Capital Gains is another important chapter for exams. [10-20 Marks]

• Misc. topics for [5-25 Marks] :

      IHP

      IOS

      Clubbing of income

      Carry Forward & Set of Losses

      Permissible Deductions [Very Important 10 Marks]

      TDS/TCS

For VAT / SERVICE TAX [25 Marks]

Note:

• For May 2011 exam, all amendments made up to 31.10.2010 are relevant. Amendments made between 1.05.2010 and 31.10.2010 would be published in RTPs for May 2011 exams.

• For Nov 2011 exam, all amendments made up to 30.04.2011 are relevant. Amendments made between 1.05.2010 and 30.4.2011 would be published in RTPs for Nov 2011 exams.

• One can read Select cases in Direct and Indirect Taxes (2009) for case laws in 2009.

≈ DISCLAIMER ≈

The views, suggestions, tips, etc expressed above are purely mine. These are not the perfect suggestions, rather very subjective from person to person.

So please, before following the above suggestions, take advice of your teachers, seniors or your boss as well. Because, for me these procedures were helpful, so before following any of them, do concern any expert.