CA Foundation Syllabus

CA Foundation Syllabus

Being a highly reputed profession with lucrative salaries, Chartered Accountancy is a widely pursued career by students across the world. In India, the first step towards building a career in this field is to clear all the 3 levels of the exam namely, CA foundation, IPCC, and the final test which are conducted by the Institute of Chartered Accountant of India(ICAI). As far as the foundation level of this one of the toughest exams in the world is concerned, it has four papers of 100 marks each that assess the knowledge of the candidates on various fronts. Even though this blog will highlight the key details pertaining to the CA foundation syllabus, but If you are wondering how to become a Chartered Accountant or want to understand the pattern of these four papers, the schedule of the upcoming examination in May 2020 and other necessary information, you can refer to our blog on CA Foundation

How to Become a CA?
How to Become a CA?

CA Foundation Syllabus: Paper 1 

The Principles and Practice of Accounting is a three hours long paper of 100 marks. The CA foundation syllabus for this paper is as follows: 

  • Theoretical Framework 
  • Accounting Process
  • Accounting for Special Transactions 
  • Concept and Accounting of Depreciation 
  • Final Accounts of Sole Proprietors 
  • Bank Reconciliation Statement 
  • Inventories 
  • Partnership Accounts 
  • Financial Statements of Not-for-Profit Organizations 
  •  Introduction to Company Accounts 

Also Read: CA After Graduation 

CA Foundation Syllabus for Paper 2 

Covering major portions related to the Business Laws and Business Correspondence and Reporting, the paper 2 is a three hours long paper which has a maximum weightage of 100 marks. The CA foundation syllabus of this paper, which is further divided into two sections has been mentioned below: 

Section A – Business Law [60 Marks] 

  • The Indian Contract Act, 1872 
  • The Sale of Goods Act, 1930 
  • The Indian Partnership Act, 1932 
  • The Limited Liability Partnership Act, 2008 
  • The Companies Act, 2013 

Note: In case of enactment of new legislation replacing the current legislation, the CA Foundation syllabus would include those provisions with effect from the corresponding dates as per the notification of ICAI.  

Section B – Business Correspondence and Reporting [40 Marks]

PARTS TOPICS COVERED
Part 1: Communication Types, Directions, Network, Process, Problems, Barriers, Types of Communication (Interpersonal, Listening Skills, and Emotional Intelligence)
Part II: Sentence Type and Word Power 1. Sentence Definition 
2. Classification of the sentence based on connotation: Assertive, Interrogative, Imperative, Exclamatory, and Optative sentences.
3. Sentence Structure: Subject and Predicate, Verb (Auxiliary, Finite), Object (Direct & Indirect Speech), Complement, Adjunct or Adverbial, Clause Structure, Types of Clauses, Direct and Indirect speech.
4. Active Passive Voice
5. Verbs Voice Active or Passive
6. Vocabulary Root Words
7. Synonyms and Antonyms
8. Prefixes and Suffixes
9. Phrasal Verbs, Collocations, and Idioms. 
Part III Comprehension Passages and Note Making
Part IV: Developing Writing Skills Introduction to Basic Writing: Precise, Article, and Report Writing, Writing Formal Letters, and Mails, Resume Writing, and Meetings. 

CA Foundation Syllabus: Paper 3

With a time span of 2 hours, the Business Mathematics, Logical Reasoning and Statistics is a total of 100 marks paper. The CA foundation syllabus and marks of every section has been listed below: 

Part – A. Business Mathematics [40 Marks]

  • Ratio and Proportion, Indices and Logarithms 
  • Equations and Matrices 
  • Linear Inequalities with Objective Functions and Optimization w.r.t. Objective Function 
  • Time value of Money
  • Permutations and Combinations
  • Sequence and Series
  • Sets, Relations, and Functions
  • Basic applications of Differential and Integral calculus

Part – B: Logical Reasoning [20 Marks] 

  • Number Series, Coding and Decoding and the Odd Man Out. 
  • Direction Tests 
  • Seating Arrangements 
  • Blood Relations 
  • Syllogism 

Part – C: Statistics [40 Marks] 

  • The Statistical Description of Data 
  • Measures of Central tendency and Dispersion
  • Probability
  • Theoretical Distributions
  • Correlation and Regression
  • Index Numbers and Time Series 

CA Foundation Syllabus: Paper 4

With an aim to develop the necessary problem-solving skills, the CA foundation syllabus of the Business Economics and Business and Commercial Knowledge assesses the knowledge of candidates in the following list of topics: 

Part I: Business Economics [60 Marks]

  • Introduction to Business Economics 
  • Theory of Demand and Supply
  • Theory of Production and Cost
  • Price Determination in Different Markets 
  • Business Cycles

Part – II: Business And Commercial Knowledge [40 Marks] 

  • Business and Commercial Knowledge – An Introduction 
  • Business Environment
  • Business Organizations
  • Government Policies for Business Growth 
  • Organizations Facilitating Business 
  • Common Business Terminologies

Note: Apart from the CA Foundation syllabus, the students appearing for the examination must read a financial newspaper and business magazine regularly to stay updated with important business-related news. 

FAQs

Q1: How many subjects are there in CA Foundation?|
Candidates interested in becoming a CA needs to pass the first stage, i.e CA Foundation. CA Foundation comprises of 4 major subjects which are mandatory for candidates to clear to reach the second stage of CA Exam. 

Q2: Is there any negative marking for CA Foundation Exam?
Yes, CA Foundation exam has negative marking. One wrong answer is equal to the dedication of 1/4th mark from the overall score. Therefore, only answer familiar questions.

Q3: Will ICAI send some books as per CA Foundation syllabus after registration or is it a paid service?
No, it is not a paid service. You will receive your books shortly after registering for the CA course. 

Q4: Is there any amendment introduced by ICAI for CA Foundation?
No, there is no change in the CA Foundation syllabus so far. However, there are some changes made in the CA Final syllabus. You may read our blog on CA Final new syllabus to know more!

Thus, the CA foundation syllabus is very diverse and comprehensive. Needless to say, one needs to have a well-crafted preparation strategy to ace this exam. If you are in need of any career-related guidance, the experts at Leverage Edu can assist you. You can book a 30 minutes free career counselling session with the experts and get all your queries answered within minutes!

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