In this article, we will learn about CA Intermediate group 1st and group 2nd preparation strategies. We will know from where to start a particular subject, how to cover the entire course and some easily scoring important topics in each subject for your upcoming Intermediate examinations.
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Preparation Strategy to Score High in CA Intermediate Group 1st Papers-
Everybody is confused how to prepare for the CA Intermediate examination as the pattern is completely new. Right now it’s time to leave everything back and focus only on your studies. You must be aware that in order to crack the CA Intermediate examination your score should be minimum 40% in each subject and 50% in aggregate of all the subjects.
The entire syllabus of CA Intermediate is divided into eight subjects and two groups. No doubt that everything is important and you have to go through the entire course but still there are some topics in each subject which are scoring and less time-consuming. Hence, in this article, we are sharing you the subject wise strategy to prepare for CA intermediate group 1st papers and CA intermediate group 2nd paper.
There are four subjects in the CA Intermediate Group 1- MUST CHECK YOUR SUBJECTS
- Corporate Laws and Other Laws
- Cost and Management Accounting
Let’s start to explore preparation strategy for group 1st each subject –
Study Plan for Accounting
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Accounts is considered as very a scoring subject in CA Intermediate and CA IPCC. Generally, students have seen to cover their aggregate percentage from the Accounting paper.
Topics covered in this subject are –
- Accounting Standard (Besides AS it includes formation of AS, IND AS, IFRS)
- Preparation and Presentation of Financial Statements as per Accounting Standards
- Companies Accounts
- Accountings for Special Transactions.
- Special Type of Accounting
- Partnership Accounting (Amalgamation, conversion into company, sale to company and issues related to LLP).
You should always be updated with the revised schedules and prepare your Balance Sheet from the revised method of Accounting as companies accounts are covering a good weightage in your exams. It covers the topics like Redemption of Preference Shares, debentures, Accounting for bonus issue and right issue, managerial remuneration, preparation for Financial Statements, Cash Flow Statements and AS – 22 is also covered here.
Accounting Standards, considered as one of the most important and easiest topics in your syllabus as well as formation of IND AS and IFRS; concepts vs Adoption; objective and concepts of carve outs. Accounting Standards covers 20 marks in accounting paper seeing the past papers. Do as many questions as given in the practice manual and don’t forget to study from the latest and updated material.
You will definitely find a question related to amalgamation in your Accounting papers which lies between 8-16 marks.
Accounting for the incomplete records and Partnership Accounts covers on an average 8 marks each. The questions are solvable and stepwise marking is awarded in typical and lengthy questions. Hire Purchase covers an average 5 marks.
So, it is advised to start with Accounting Standards along with IFRS and IND AS. Read the theory from your compiler and solve the questions from the practice manual and scanners.
As we know that practice makes the man perfect therefore you should solve as many questions as you can.
Study Plan for Corporate and Other Laws
Corporate and Other Laws covers the two sections. One of them is companies’ law and second one is other laws. Company Law covers 60 marks while the remaining part covers 40 marks.
The course is very vast and need proper revision from time to time. Mnemonics in this subject plays a crucial role in remembering the sections easily and also recall them in exams. Company Law covers a major portion and also scoring. Other Laws cover 40 marks but as much lengthy as company Law.
Maybe you are thinking that you can easily get pass only with the company law as it covers 60 marks and leave the other laws but don’t even think to do this mistake. As you know that first question in the paper is a compulsory question and from the remaining paper you are allowed to leave one question. The paper pattern seems to be like that you will find a part of each question from the other laws which you can’t skip as it creates a negative impression on the examiner by which you will not even get passing 40 marks because ICAI is expecting you to read the entire syllabus.
Companies Act 2013 is applicable in your syllabus covering Sections 1 to 148 along with some provisions of Companies Act, 1956 will are still in force.
Topics covered in Companies Act are as follows –
- Incorporation of Company and matters incidental thereto.
- Prospectus and Allotment of Securities.
- Share Capital and Debentures
- Acceptance of Deposits by Companies
- Registration of Charges
- Management and Administration
- Declaration and Payment of Dividend
- Accounts of Companies
- Audit and Auditors
Topics covered in Other Laws –
- The Indian Contract Act, 1872
- The Negotiable instruments Act, 1881.
- The General Clauses Act, 1897.
- Interpretation of Statues.
Understand the concepts very well because law is all about interpretation. Grip on the sections is important basically on the matter. If you can remember the section number than it is well and good but if you are not sure about the section number then don’t write the section number as it will deduct your marks more than what you get after writing it.
Practice the past attempt papers as well as solves the case studies; it will help you in interpreting laws.
Study Plan for Cost and Management Accounting
Costing is a very interesting subject and loved by most of the students. Again this is a practical subject and before solving any question your concepts must be very clear.
Topics covered by Cost and Management Accounting is –
- Ascertainment of Cost and Cost Accounting System (Material Cost, Employee Cost, Direct Expenses, Overheads, ABC costing, recording and accounting of costs).
- Method of Costing (Single unit cost, Job Costing, Batch Costing, Contract Costing, Process/ Operation costing, Costing of Service sectors).
- Cost Control and Analysis (Standard Costing, Marginal Costing, Budgetary costing).
Always start with the basic concepts and read the theory well. Understand the formulas because learning them can create confusion in exam. But if you understand them thoroughly then you will never get confuse. Standard Costing is one of its example, easy for the students who understand the formulas however cumbersome for the students who are busy in learning them.
Now came to the Ascertainment of Cost and priority should be given to the Material, Labour and Overhead because this is the core part to understand each and every chapter. ABC costing is simple and scoring.
Each and every method of Accounting is important but Process and Contract Costing are considered quite more important so go through them very well.
Reconciliation of Financial Accounts with the Cost Accounts should also be properly done.
Cost Control and Analysis covers 40% part in your paper. Budgetary is the most simple chapter among them, Standard Costing is based on the formulas so grab the command over it and this will also be a Simplest chapter.
Study Plan for Taxation
Taxation is divided among two sections one is Income Tax and the other one is Indirect Taxes. Income Tax covers 60 marks and Indirect Taxes covers 40 Marks. Taxation paper is perfectly blended in theory and practical portion.
Topics covered in Income Tax are as follows –
- Basic Concepts.
- Residential Status and Scope of Total Income.
- Income which do not form part of the total income.
- Heads of the income and the provisions governing computation of Income under different heads.
- Income of other persons included in assessee’s total income.
- Aggregation of income, set off or carry forward and set off of losses.
- Deduction from the Gross total income.
- Computation of total income and tax liability of individuals.
- Advance Tax, TDS and TCS.
- Provisions for filing return of income and self assessment.
Understand each and every clause not just to crack this exam but also perform well in your articleship. Heads should be at the top priority. Salary and House Property are considered very much important at the Intermediate level. You will always find a question from the Salary Head in your paper. Section number are also important to learn at least charging section.
Thoroughly prepare computation of Total Income and this is possible when your provisions are clear.
Besides the various heads some case laws are expected from the TDS and TCS. Short questions are expected from the Basic Concepts and Residential Status.
Deductions and carry forward of losses generally become the part of total income so don’t forget to treat them in the computation of Total Income.
As we know that GST has replaced 17 indirect taxes in India and remove the cascading effect. Therefore the topics covered in Indirect Taxes are as follows –
- Concept of Indirect Taxes
- Goods and Service Tax
GST is itself very important and applicable from May 2018 examinations and onwards. Amendments made up to 31st October will be applicable to exams. Study Material issued by the ICAI regarding GST is appreciable. You can read the theory from the study material and practice the questions from the practice manual.
How to Prepare for CA Intermediate Group 2nd Papers.
Are you worried how to commence your preparation for the Group 2nd. Students appearing in the IPCC can commence their practical training only after clearing the Group 1st examinations. However, students registering for the CA Intermediate can commence their three years of practical training after passing out either both or any one group.
We are going to help you plan your CA intermediate group 2nd preparation strategy. We are going to learn from the article about where to start a subject and where you need to focus more. Entire syllabus of the CA Intermediate is divided among two groups and each group consists of four subjects.
According to the Intermediate eligibility criteria, in order to crack this exam one has to obtain 40% marks in each subject and 50% marks in aggregate of all the subjects. You can appear in either one group or both the groups.
Subjects covered by the second group are as follows –
- Advanced Accounting.
- Auditing and Assurance.
- Enterprise Information System
- Strategic Management.
- Financial Management and Economics for Finance.
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How to Study Advance Accounting
Topics covered by Advance Accounting are as follows –
- Accounting Standards (AS – 7, 9, 14, 18, 19, 20, 24, 26, 29)
- Application of Guidance Notes on specified accounting aspects.
- Special aspects of company accounts (ESOP, buyback, Underwriting)
- Reorganization of companies (Amalgamation, reconstruction and Liquidation)
- Financial Reporting of Banking, Financial Services and Insurance (BFSI) (Insurance co, Banking Co, Non Banking Co, Mutual Funds).
- Valuation of Goodwill
- Consolidated Financial Statements
Start with the Accounting Standards as they are much easy compared to other topics and also very much scoring. At the Intermediate level, they will cover around 20 marks paper. From the above AS – 7, 9, 20, 26 are easiest.
There is always a question Reorganization of Companies carrying 8 – 16 marks in the paper either from the Amalgamation or Internal Reconstruction. Amalgamation not only covers Group – 2nd but also it covers Group – 1st. And it is probable that if there is a question in Group 1st “Accounting” paper from Amalgamation carrying 16 marks then there will be high chances of Internal Reconstruction in Group – 2nd Advance Accounting paper.
There must be at least one question from the Buy Back, Underwriting or ESOP carrying 8 marks or two questions of 4 marks each and are generally easy to prepare. The higher probability is of Bu Back.
Companies Accounts on an average carries 30-35 marks and practice can make you perfect in such. Issue and Redemption of Debentures are important and scoring.
Banking company accounts like NPA, rate of provision P&L account covers around 5-8 marks.
Questions from the Insurance Companies are expected which will carry around 8-10 marks. Branch Accounting is also important.
It is generally advisable to cover the partnership accounts at last because they are lengthy, time-consuming and not easy to prepare. However, it carries around 16 mark question in each attempt. So, don’t skip it but cover the easier part first.
Practice as much questions as you can from the VSI compiler and Practice Manual.
How to Study Auditing and Assurance
The most awaited subject in the CA Intermediate Auditing and Assurance. The subject is not that easy and also not much scoring. But you have to read each and every topic as this is the basic work of a Chartered Accountant and everyone has to perform the audit in their office during practical training as soon as they clear the CA Intermediate.
The topics covered in this subject are as follows –
- Nature, Objective and Scope of Auditing.
- Audit Strategy, Audit Planning and Audit Program.
- Audit Documentation and Audit Evidence
- Risk Assessment and Internal Control
- Fraud and Responsibilities of the Auditor in this regard.
- Audit in an Automated Environment.
- Audit Sampling
- Analytical Procedures.
- Audit of Items of Financial Statements
- The Company Audit
- Audit Report
- Audit of Banks
- Audit of Different type of Entities.
There is so much confusion among some students that in Audit paper you have to write the bookish language. But this information is totally false. The language you are using in your paper is first to imprison on the examiner so you must have a command over the language either English or Hindi. You can use own language but there are some Keywords in your answer which should not be replaced anyhow. For example, true and fair view should not be replaced by correct opinion.
You can start with the Standards on Auditing as they cover 15-20 marks paper. They are easy and also scoring but you should always remember the name of Standards. Some important SA’s are SA 230, SA 330, SA 450, SA 505, SA 520, SA 610, SA 710.
Company Audit should be on the top priority. This chapter is damn easy to read and retain and also very much scoring. It covers on an average 30 marks in your paper.
Other important topics are as follows –
- Special Audits related to Club, NGO, Partnership firms, Educational institutions, Hotels, Cinema Halls, hospitals, sole proprietor etc.
- Vouching and Verification of Cash, Depreciation, Tangible and Intangible assets.
- Risk Assessment and Internal Control covering Audit Trail, Audit Risk.
- Preparation of Audit Report featuring with Audit techniques, Audit programme, Audit Sampling, Continuous Audit, Letter of Engagement, Management Representation.
- Inherent Limitations of Audit, Operational Audit, Detection of Fraud and Errors.
- Audit Documentation and Audit Evidence covering SA 220 and 230.
Presentation of answer in Audit covers good marks. Always write your answer in points or short Para. Underline the important or key words.
Start your answer with the proper analysis of question then write the provision regarding that and end your answer with the proper conclusion.
Practice the questions from your VSI compiler or Practice Manual or Scanner. Many questions are directly seen from the Practice Manual so it is better to cover the Practice Manual thoroughly.
Study Plan for Enterprise Information System and Strategic Management
This subject is equally divided into two sections one is Information Technology (IT) and the other one is Strategic Management (SM). SM is considered as scoring and easy while the IT is difficult to learn and retain.
Topics covered in IT are as follows –
- Automated Business Process.
- Financial and Accounting Systems.
- Information system and its components.
- E-Commerce, M-Commerce and Emerging Technologies.
- Core Banking Systems.
In Enterprise Information systems most scoring and easiest topic is Flowchart and Decision Table. A question covering 8 marks is generally seen in the paper. Most of the times the question arrives in the exam paper from the ICAI material either the study material or the practice manual.
The problems generally faced by the students is lack of revision which makes them blank in the exam even after studying a lot, so revise it daily.
Many of the students have perception that this is a complete learning subject but no, this is not true. You need to understand the Para before learning otherwise it cannot retain in your mind longer.
Don’t stick on a single topic for the whole day. If you are not getting that topic then move on and mark it so that you can take help of your teachers.
Make summary of the chapters. Chart format is preferable because at the exam time revision of the entire course is not possible from the book. So, be ready with the summary notes.
Command on the language matters a lot especially in IT and SM. Presentation must be good enough to get the marks. Practice writing answers at home and match them with the institute material or suggested answers.
SM is considered easy in comparison to IT but resultant checking in SM is tough as compare to IT.
Thoroughly complete the VSI compiler and read the practice manual as many times as you can.
Study Plans for Financial Management and Economics for Finance
The subject is divided into two sections one is Financial Management and another one is Economics for Finance. Financial Management covers the major part consisting of 60 marks and Economics for Finance consists of 40 marks.
The subject is newly introduced. Financial Management was the part of the first group has now become a part of the second group with Economics for Finance.
Topics covered in Financial Management are as follows –
- Financial Management and Financial Analysis (Introduction and Analysis through Ratios)
- Financing Decisions (Sources of Finance, Leasing, Cost of Capital, Capital Structure, Leverages).
- Capital Investment and Dividend Decisions (Capital Investment, Adjustment of risk and Uncertainty in capital budgeting decision, dividend decisions)
- Management of Working Capital
Start from the basic theory and formulas of the chapters so that you can easily solve the questions. Try to understand the making of formulas so that it will retain in your mind for a longer period.
You can start from the Cash Flow and Fund Flow, the most important topic. You will definitely find a question either from the Cash Flow or the Fund Flow.
Then take a short chapter to build confidence i.e. Leverage, a formulae based chapter but if your concepts are clear, you understood the formulas rather than learning it then it is the most simplest and short chapter.
Then you can go with Capital Budgeting and thoroughly prepare the sums on Payback period, PI, ARR, NPV and IRR. Each and every method is important but among all the topics NPV and IRR is quite more important so prepare them very well.
Again pick a short chapter Ratios, a formulae based chapters so, read and understand the formulas first and then start solving questions.
Then you can complete Cost of Capital, Leasing, Management of Working Capital and Capital structure.
Prepare the theory well with the practical part.
Practice the questions given in your VSI compiler and Practice Manual. Revise the subject on a daily basis and prepare chart on formulas of each and every chapter.
Topics covered in Economics for Finance are as follows-
- Determination of National Income
- Public Finance
- The Money Market
- International Trade
The Subject is newly introduced in the CA Intermediate. But the subject is short and topics are easily understandable so you can score well in Economics for Finance.
Cover each and every topic. Start the topics depending on their length and as per your convenience.
You need experienced teachers and proper guidance for the best results and VSI is always welcoming every student. Each and every single concept is made clear by our experienced teachers. Time to time motivation given by our teachers helps the students focusing completely towards their goal and do not let them get distracted.
In this article, we have learned CA Intermediate group 1st study and group 2nd study preparation strategy Now you know from where to start a particular subject, how to cover the entire course and some easily scoring important topics in each subject for your upcoming Intermediate examinations.
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