Syllabus of the West Bengal Audit and Accounts Service Examination

Syllabus of the West Bengal Audit and Accounts Service (Special Recruitment) Examination, 2013

The examination shall be comprise of multiple choice objective type questions consisting of two papers, viz Paper I and Paper II to and shall be held on a single day. Paper I shall consist of Group-A and Group-B.

(a) Paper I: TimeTime Where any expression of it occurs in any Rules, or any judgment, order or direction, and whenever the doing or not doing of anything at a certain time of the day or night or during a certain part of the day or night has an effect in law, that time is, unless it is otherwise specifically stated, held to be standard time as used in a particular country or state. (In Physics, time and Space never exist actually-“quantum entanglement”): 2.30 Hrs. Marks: 200, having 200 questions of 1(one) mark each on the following subjects [One mark will be deducted for 3 wrong answers]:

Group A
(1) English Composition-50

(2) General Knowledge, Current Affairs of National & International Importance, History of IndiaIndia Bharat Varsha (Jambu Dvipa) is the name of this land mass. The people of this land are Sanatan Dharmin and they always defeated invaders. Indra (10000 yrs) was the oldest deified King of this land. Manu's jurisprudence enlitened this land. Vedas have been the civilizational literature of this land. Guiding principles of this land are : सत्यं वद । धर्मं चर । स्वाध्यायान्मा प्रमदः । Read more and Indian National Movement, Geography, Reasoning.-40

(3) Constitution of India with special Reference to Planning Commission, Finance Commission, Finance, Accounts and Audit.-35

Group B

(4) Business Mathematics and Statistics-35
(5) Accountancy-40

Sub-Total: 200

(b) Paper II: Time: 2.30 Hrs. Marks: 200, having 200 questions of 1(one) mark each on the following subjects . One mark will be deducted for 3 wrong answers:

(1) Business Laws-35
(2) Cost and Management Accountancy-35
(3) Principles and Practice of Management-35
(4) Taxation (Direct and Indirect)-25
(5) Auditing-35
(6) Business Economics and Indian Economics-35

Sub-Total: 200

(C) Personality Test 100

Total: 500

Syllabus of examination:

Paper-I

Group-A

(1) English Comprehension,

(2) General Knowledge, Current Affairs of National & International Importance,
History of India and Indian National Movement, Geography, Reasoning,

(3) Constitution of India with special Reference to Planning Commission, Finance
Commission, Finance, Accounts and Audit.

Syllabus Graduate Standard of respective Subjects.

Paper-I

Group-B

(4) BUSINESS MATHEMATICS & STATISTICS

1. Ratio and Proportion with simple applications
2. A.P., G.P. Convergence and Divergence of G.P. Series.
3. Idea of complex numbers. Solution of quadratic equation with real coefficients. Relation between roots and coefficients and nature of the roots.

4. Logarithms – definition, elementary properties and applications for computing compound interest and annuities.

5. Collection of data and presentation of data-tabular and diagrammatic. Frequency
   distribution – Diagrammatic representation of frequency distribution.

6. Different measures of Central Tendency – A.M., G.M., H.M., Median and Mode.

7. Measures of Dispersion: Range, Quartile Deviation, Mean Absolute Deviation, Standard
   Deviation, Measures of Relative Dispersion.

8. Bivariate Data-Simple Correlation Coefficient and its properties. Spearman’s Rank
   Correlation Coefficient (in case of no tie). Simple Linear Regression and its properties.

9. Probability Theory – Meaning of probability; Different definitions of probability;
   Conditional probability; Compound probability; Independent events; (excluding Bayes’
   Theorem).

10. Index Numbers:- Means and types of index numbers ; Problems in construction of index numbers; Methods of construction of price and quantity indices; Tests of adequacy; errors in index numbers; Chain-base index numbers; Base shifting, splicing, deflating; Consumer price index and its uses.

11. Time Series Analysis:- Causes of variation in time series data; Components of time series ;

Additive and multiplicative models; Determination of trend by semi average, moving average and least squares (linear, second degree and exponential) methods; Computation of seasonal indices by simple average, ratio-to-moving average, ratio-to trend and link relative methods; Simple forecasting through time series data.

(5) ACCOUNTANCY

1. Capital and Revenue: Classification of Income; Classification of expenditure;
   Classification of Receipts.
2. Depreciation, Provisions and Reserves: Concept of depreciation, Causes of
   depreciation, depreciation, Depletion, Amortization and Dilapidation; Depreciation accounting.
   Methods of recording depreciation; Methods of providing depreciation
3. Partnership Accounts: General Accounts; Goodwill; Joint Life Policy, Change in Profit
   Sharing Raito, Admission of a Partner; Retirement of a Partner, Death of a Partner;
   Amalgamation of Partnership Firms.
4. Partnership Dissolution: Garner Vs Murray; Gradual Realization of Assets and
   piecemeal Distribution. Dissolution of partnership Firm – Modes of dissolution of a firm;
   Accounting entries; Insolvency of Partners.
5. Company accounts: Accounting for various kinds of shares, their issue, allotment and
   forfeiture, re-issue of forfeited shares.
6. Company Accounts: Issue of Debentures & treatment of cost of issue of debenture; issue of bonus shares; Buy-back of Securities; Redemption of Debentures & Preference shares.
7. Company Merger and Reconstruction: Amalgamation by Merger and purchase.
   Reconstruction – External and Internal.
8. Holding companies – Preparation of Consolidated Balance Sheet of Holding Company
   (Excluding Chain in holding)
9. Departmental and Branch Accounts (excluding foreign branch)
10. Hire Purchase and Installment Payment Systems.
11. Valuation of Goodwill and Shares.
12. Insurance ClaimA Claim A claim is “factually unsustainable” where it could be said with confidence before trial that the factual basis for the claim is entirely without substance, which can be the case if it were clear beyond question that the facts pleaded are contradicted by all the documents or other material on which it is based. – General – Loss of Stock – Average Clause – Consequential Loss or
    Loss of Profits – Terms Used – Calculation of Claims.

Paper-II

(1) BUSINESS LAWS

INDIAN COMPANY LAW

a) Introduction – definitions, features and types of Companies; private company and public company –differences, conversion of private company into public company and vice versa
b) Memorandum of Association and Articles of Association, distinction, alteration of
Memorandum and Articles of Association, Doctrine of Ultra Vires and Indoor Management;
Prospectus- form and content- statutory requirements of a prospectus; additional disclosures in prospectus statement in lieu of prospectus statement by experts, Shelf prospectus, red- herring prospectus, abridged prospectus, misstatement in prospectus and its consequences; minimum subscription; Dematerialized shares
c) Formation of Company: essential steps, procedure for registration and incorporation,
certificate of incorporation and commencement of business; promoters – legal status, duties,liabilities and remuneration; allotment of shares
d) Share Capital – equity and preference shares; stock; sweat equity shares; ESOP(Employees stock option scheme); rights issue; share certificate and share warrants – distinction; bonus shares; transfer and transmission of shares; buy back of shares; debenture- classification

e) Board of Management – Director- qualification, disqualification, appointment, legal position; number of directorship ;Removal, Resignation of Director; duties, liabilities, powers of board of directors; Managing Director– qualification, appointment; Company Meetings – quorum, resolution, Minutes; Winding up – modes, Grounds for compulsory and voluntary winding up

INDIAN PARTNERSHIP ACT, 1932

a) Partnership: meaning – partner, firm and firm name; essential elements; true test of partnership Types of Partner: partnership distinguished from co-ownership, company, club; partnership by estoppel or holding out; limited partnership
b) Registration of Partnership Firm: consequences of non-registration Minor’s Position in
Partnership
c) Rights and Duties of the Partner: relation of partners with third parties; implied authority of a
partner restrictions on the implied authority of a partner
d) Dissolution of Firms: meaning and grounds of dissolution

THE INDIAN CONTRACTContract An agreement enforceable by law is a contract. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Indian Contract Act. ACT, 1872

a) Introduction Essential elements of a valid contract, classification of contracts
b) Offer and Acceptance: meaning, rules relating to valid offer and acceptance; communication of offer and acceptance; revocation of offer and acceptance
c) Consideration : definition ; essential elements, types of consideration ; “no consideration no contract” and it’s exceptions
d) Capacity of Parties: Competency to contract; minor; persons of unsound mind; persons
disqualified by other laws
e) Consent: definition of consent and free consent; coercion; undue influence; fraud;
misrepresentation; mistake
f) Void and Voidable Agreements: definitions; distinction between void and illegal agreementContract An agreement enforceable by law is a contract. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Indian Contract Act.; wagering agreement
g) Discharge of Contracts: meaning; methods of termination or discharge of contract Special Contracts: definition only contingent contract; quasi contract; contract of indemnity; contract of guarantee; bailment; pledge.

(2) COST & MANAGEMENT ACCOUNTING

1. Introduction: Nature and Scope of Cost Accounting- Concepts of Cost –Classification of
   CostsCosts Subject to any written law, costs are at the discretion of the Court, and the Court has the power to determine all issues relating to the costs of or incidental to all proceedings, including by whom and to what extent the costs are to be paid, at any stage of the proceedings or after the conclusion of the proceedings. Generally “Costs” includes charges, disbursements, expenses, fees, and remuneration. Costs in any matter are payable from the date of the order of the Court unless the parties otherwise agree. The costs of a third-party funding contract are not recoverable as part of the costs of, or costs. – Cost Accounting Vs. Financial Accounting – Cost Accounting Vs. Management
   Accounting – methods of Costing – Installation of Costing System.

(3) PRINCIPLES & PRACTICE OF MANAGEMENT

1) Introductory Concepts: Concept, definition and nature of Management – concept
of organization –Elements of Organization – Importance of management- Management
Science or art or both – Management as a profession – Professional management in India –
Functions and levels of management – managerial skills and organizational hierarchy –
Functional managers and general managers – Universality of management – concept and
nature of coordination – Coordination as the essence of management

2) Evolution of Management Thought: Meaning of management thought and
theories. Schools of management theory – Scientific management: elements, principles and criticisms –Contributions of Henri Fayol – Management principles and their criticisms – Human Relations Approach – Hawthorne Experiments and their findings – Systems and contingency approaches to management.

3) Management and Society: Elements of organizational environment: economic,
social, technological, political and legal: Social responsibilities of managers – Managerial
ethics – Ethical theories – Code of Ethics.

4) Planning: Definition, nature and importance of planning – Hierarchy of Planning –
Types of Plan – Steps in Planning Process – Planning Premises – Meaning of forecasting –
Techniques of forecasting – benefits and limitations of Planning – Management by Objectives (MBO): meaning, features and objectives – Steps in MBO process – Benefits and weakness of MBO.

5) Organizing: Concept and meaning of organizing – Process of organizing –
Methods of Departmentation – Span of management: factors determining an effective span – concepts of authority, responsibility and accountability – Delegation of authority: concept and principles – Measures for making delegation effective – Centralization and decentralization of authority – Line and staff concepts.

6) Staffing: Definition, features importance of staffing – Elements and functions of
staffing – Manpower planning – Job analysis, job description and job specification – Sources of recruitment – Selection and placement procedure – Training and development of managerial and non-managerial personnel.

7) Leading: Concept, features and importance of leadership – Ingredients of
leadership –Functions of leadership – Differences between leadership and management –
Leadership styles: autocratic, democratic and free-rein leadership – Trait theory of leaders.
8) Motivation: Definition, features and importance of motivation – Motivation and
morale –Job enrichment and job enlargement – Theories of motivation: McGreger’s Theory X and Theory Y, Maslow’s Theory, Herzberg’s theory, Maclelland’s Need Theory – Critical appraisal of motivation theories.

9) Communication: Meaning and importance of communication – Communication
process – Channels of communication – Communication media – oral, written and gestural – Barriers in communication – Measures for effective communication.

10) Control: Definition, nature and importance of managerial control – Relationship
between planning and control – Types of control – Steps in control process – Resistance to control – Requirements for effective control system – Important control techniques: budgetary control, performance budgeting, zero-base budgeting, management audit.

(4) TAXATION (DIRECT AND INDIRECT)

Income tax

1. Basic Concepts and Definitions under Income Tax Act: Assessee, Previous year, Assessment year, Sources of income, Heads of income, Gross total income, Total income, Tax Evasion, Tax avoidance, Tax planning Residential Status and Incidence of Tax Residential status of all persons except company Incomes which do not form part of Total Income

a) Rate of tax applicable to different assesses (except Corporate Assessee)
b) Computation of tax liability of an individual and firm Value Added Tax (VAT) [W.B. State Level] : Definition and Origin of VAT, Objectives of VAT,
Registration of Dealer, Rates Structure of VAT, Methodology of VAT Computation (Addition Method, Subtraction Method & Input Tax Credit Method), Advantages and Disadvantages of VAT.

Central Sales Tax Act 1956: Important terms and definition under Sales Tax Act – Dealer,
declared goods; place of business; sale; sale price; turnover. Year: Principle of determining tax when a sale or purchase of goods takes place in the course of inter-state trade or commerce or outside a state

(5) AUDITING

1. Definition & Scope of Auditing: Relation of Auditing with Book keeping and Accounting – Objectives of Auditing – Errors (different types – their detection) Frauds – Manipulation of Accounts with or without misappropriation of cash and goods and Auditor’s positions in relation thereto – Advantage and limitation of Audit.

(6) BUSINESS ECONOMICS & INDIAN ECONOMICS

1. Demand Analysis: Necessity of demand analysis: demand distinctions – slope of demand curve and elasticity of demand – Different revenue concepts – Relation concerning average revenue, marginal revenue and elasticity of demand.

(B) Industrial development during plan period; Industrial sickness; Industrial policies in the Pre-reform and Post-reform period in 1991.

1. Globalization and the Policies of the Indian Economy under WTOWTO The World Trade Organization (164 Members) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The WTO operates the global system of trade rules and helps developing economies build their trade capacity. Observer governments> Algeria- Andorra- Azerbaijan- Bahamas- Belarus- Bhutan- Bosnia and Herzegovina- Comoros- Curaçao- Equatorial Guinea- Ethiopia- Holy See- Iran- Iraq- Lebanese Republic- Libya- Sao Tomé and Principe- Serbia- Somalia- South Sudan- Sudan- Syrian Arab Republic- Timor-Leste- Turkmenistan- Uzbekistan- Regime.