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Principles and Practice of Accounting | CA Foundation Docs, Videos, Tests43,251 students learning this week · Last updated on Jul 17, 2025 |
Principles and Practice of Accounting is a comprehensive course designed specifically for CA Foundation aspirants. This course covers all the essentia
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l topics and principles of accounting, providing a strong foundation for students. With detailed explanations and practice exercises, this course aims to enhance students' understanding and application of accounting principles. Join EduRev's Principles and Practice of Accounting Course for CA Foundation to excel in your CA journey.
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Accounting for CA Foundation Exam Pattern 2025-2026
Principles and Practice of Accounting Exam Pattern for CA Foundation
The CA Foundation exam is an important milestone for aspiring Chartered Accountants, and one of the subjects included in this examination is Principles and Practice of Accounting. Understanding the exam pattern of this subject is crucial for effective preparation. Here, we will discuss the exam pattern for Principles and Practice of Accounting in CA Foundation.
1. Mode of Examination:
The Principles and Practice of Accounting exam is conducted in offline mode, which means it is a pen and paper-based test. Candidates are provided with a question paper and an answer booklet to write their answers.
2. Duration:
The duration of the exam is three hours. Candidates must complete their answers within this time frame.
3. Total Marks:
The exam is conducted for a total of 100 marks. This subject carries significant weightage in the CA Foundation examination.
4. Question Type:
The question paper consists of both subjective and objective-type questions. The subjective questions require detailed written answers, while the objective questions are multiple-choice questions (MCQs).
5. Sections:
The Principles and Practice of Accounting question paper is divided into two sections - Section A and Section B.
6. Section A:
Section A consists of subjective questions that test the candidate's knowledge and understanding of accounting principles, concepts, and procedures. It requires comprehensive written answers.
7. Section B:
Section B consists of objective-type questions, including multiple-choice questions (MCQs). These questions assess the candidate's ability to apply accounting principles in practical scenarios.
8. Marking Scheme:
Each question in the exam carries specific marks, which are clearly mentioned in the question paper. It is important for candidates to allocate their time according to the marks allotted to each question.
9. Syllabus:
The exam syllabus covers various topics such as accounting principles, accounting standards, preparation of financial statements, partnership accounts, and basic knowledge of the Indian accounting system.
10. Preparation Tips:
To excel in the Principles and Practice of Accounting exam, candidates should thoroughly understand the fundamental concepts, practice solving different types of problems, and revise the syllabus regularly. They should also solve previous years' question papers to get acquainted with the exam pattern and manage time effectively during the examination.
Understanding the exam pattern for Principles and Practice of Accounting in CA Foundation is essential for students to prepare effectively. By familiarizing themselves with the exam format, candidates can strategize their study plan and perform better in the examination.
The CA Foundation exam is an important milestone for aspiring Chartered Accountants, and one of the subjects included in this examination is Principles and Practice of Accounting. Understanding the exam pattern of this subject is crucial for effective preparation. Here, we will discuss the exam pattern for Principles and Practice of Accounting in CA Foundation.
1. Mode of Examination:
The Principles and Practice of Accounting exam is conducted in offline mode, which means it is a pen and paper-based test. Candidates are provided with a question paper and an answer booklet to write their answers.
2. Duration:
The duration of the exam is three hours. Candidates must complete their answers within this time frame.
3. Total Marks:
The exam is conducted for a total of 100 marks. This subject carries significant weightage in the CA Foundation examination.
4. Question Type:
The question paper consists of both subjective and objective-type questions. The subjective questions require detailed written answers, while the objective questions are multiple-choice questions (MCQs).
5. Sections:
The Principles and Practice of Accounting question paper is divided into two sections - Section A and Section B.
6. Section A:
Section A consists of subjective questions that test the candidate's knowledge and understanding of accounting principles, concepts, and procedures. It requires comprehensive written answers.
7. Section B:
Section B consists of objective-type questions, including multiple-choice questions (MCQs). These questions assess the candidate's ability to apply accounting principles in practical scenarios.
8. Marking Scheme:
Each question in the exam carries specific marks, which are clearly mentioned in the question paper. It is important for candidates to allocate their time according to the marks allotted to each question.
9. Syllabus:
The exam syllabus covers various topics such as accounting principles, accounting standards, preparation of financial statements, partnership accounts, and basic knowledge of the Indian accounting system.
10. Preparation Tips:
To excel in the Principles and Practice of Accounting exam, candidates should thoroughly understand the fundamental concepts, practice solving different types of problems, and revise the syllabus regularly. They should also solve previous years' question papers to get acquainted with the exam pattern and manage time effectively during the examination.
Understanding the exam pattern for Principles and Practice of Accounting in CA Foundation is essential for students to prepare effectively. By familiarizing themselves with the exam format, candidates can strategize their study plan and perform better in the examination.
Accounting for CA Foundation Syllabus 2025-2026 PDF Download
CA Foundation Principles and Practice of Accounting
- Introduction to Accounting
- Accounting Concepts, Principles, and Conventions
- Accounting Standards
- Accounting Policies
- Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates
- Basic Accounting Procedures - Journal Entries, Ledger, Trial Balance
- Subsidiary Books and Cash Book
- Rectification of Errors
- Bank Reconciliation Statement
- Depreciation Accounting
- Preparation of Final Accounts
- Meaning and Need for Bank Reconciliation Statement
- Preparation of Bank Reconciliation Statement
- Treatment of Unpresented and Dishonored Cheques
- Errors and Omissions
- Introduction to Inventories
- Valuation of Inventories - Cost and Net Realizable Value
- Methods of Inventory Valuation - FIFO, LIFO, Average Cost
- Lower of Cost or Net Realizable Value
- Inventory Turnover Ratio
- Introduction to Depreciation
- Factors Affecting Depreciation
- Methods of Depreciation - Straight Line, Written Down Value, Depletion Method
- Change in Depreciation Methods
- Accounting Treatment for Disposal of Depreciable Assets
- Depreciation Policy
- Trading Account
- Profit and Loss Account
- Balance Sheet
- Adjustments in Final Accounts - Closing Stock, Outstanding Expenses, Prepaid Expenses, Accrued Income, Income Received in Advance, Depreciation
- Bills of Exchange and Promissory Notes
- Consignment Accounting
- Joint Ventures
- Sale of Goods on Approval or Return Basis
- Average Due Date
- Account Current
- Introduction to Partnership Accounts
- Final Accounts of Partnership Firms - Profit and Loss Appropriation Account, Capital Accounts, Current Accounts, Distribution of Profit among Partners
- Admission of a Partner - Revaluation of Assets and Liabilities, Treatment of Goodwill
- Retirement and Death of a Partner - Adjustment of Accumulated Profits and Losses, Treatment of Goodwill
- Dissolution of a Partnership Firm
- Introduction to Not-for-Profit Organizations
- Receipt and Payment Account
- Income and Expenditure Account
- Balance Sheet of Not-for-Profit Organizations
- Accounting for Specific Items - Subscription, Legacy, Investment Income, General Donations, Specific Donations
- Introduction to Company Accounts
- Issue, Forfeiture, and Re-issue of Shares
- Redemption of Preference Shares and Debentures
- Final Accounts of Companies
- Accounting for Debentures - Issue, Redemption, and Interest
- Analysis of Financial Statements - Tools and Techniques
By following this syllabus for CA Foundation Principles and Practice of Accounting, students will gain a comprehensive understanding of the fundamental concepts and principles of accounting, as well as the practical application of accounting procedures and techniques in various business situations.
Chapter 1: Theoretical Framework
- Introduction to Accounting
- Accounting Concepts, Principles, and Conventions
- Accounting Standards
- Accounting Policies
- Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates
Chapter 2: Accounting Process
- Basic Accounting Procedures - Journal Entries, Ledger, Trial Balance
- Subsidiary Books and Cash Book
- Rectification of Errors
- Bank Reconciliation Statement
- Depreciation Accounting
- Preparation of Final Accounts
Chapter 3: Bank Reconciliation Statement
- Meaning and Need for Bank Reconciliation Statement
- Preparation of Bank Reconciliation Statement
- Treatment of Unpresented and Dishonored Cheques
- Errors and Omissions
Chapter 4: Inventories
- Introduction to Inventories
- Valuation of Inventories - Cost and Net Realizable Value
- Methods of Inventory Valuation - FIFO, LIFO, Average Cost
- Lower of Cost or Net Realizable Value
- Inventory Turnover Ratio
Chapter 5: Concept and Accounting of Depreciation
- Introduction to Depreciation
- Factors Affecting Depreciation
- Methods of Depreciation - Straight Line, Written Down Value, Depletion Method
- Change in Depreciation Methods
- Accounting Treatment for Disposal of Depreciable Assets
- Depreciation Policy
Chapter 6: Preparation of Final Accounts of Sole Proprietors
- Trading Account
- Profit and Loss Account
- Balance Sheet
- Adjustments in Final Accounts - Closing Stock, Outstanding Expenses, Prepaid Expenses, Accrued Income, Income Received in Advance, Depreciation
Chapter 7: Accounting for Special Transactions
- Bills of Exchange and Promissory Notes
- Consignment Accounting
- Joint Ventures
- Sale of Goods on Approval or Return Basis
- Average Due Date
- Account Current
Chapter 8: Partnership Accounts
- Introduction to Partnership Accounts
- Final Accounts of Partnership Firms - Profit and Loss Appropriation Account, Capital Accounts, Current Accounts, Distribution of Profit among Partners
- Admission of a Partner - Revaluation of Assets and Liabilities, Treatment of Goodwill
- Retirement and Death of a Partner - Adjustment of Accumulated Profits and Losses, Treatment of Goodwill
- Dissolution of a Partnership Firm
Chapter 9: Financial Statements of Not-for-Profit Organizations
- Introduction to Not-for-Profit Organizations
- Receipt and Payment Account
- Income and Expenditure Account
- Balance Sheet of Not-for-Profit Organizations
- Accounting for Specific Items - Subscription, Legacy, Investment Income, General Donations, Specific Donations
Chapter 10: Company Accounts
- Introduction to Company Accounts
- Issue, Forfeiture, and Re-issue of Shares
- Redemption of Preference Shares and Debentures
- Final Accounts of Companies
- Accounting for Debentures - Issue, Redemption, and Interest
- Analysis of Financial Statements - Tools and Techniques
By following this syllabus for CA Foundation Principles and Practice of Accounting, students will gain a comprehensive understanding of the fundamental concepts and principles of accounting, as well as the practical application of accounting procedures and techniques in various business situations.
This course is helpful for the following exams: CA Foundation
How to Prepare Accounting for CA Foundation?
How to Prepare Principles and Practice of Accounting for CA Foundation?
Preparing for the Principles and Practice of Accounting (PPOA) paper in the CA Foundation exam can seem like a daunting task. However, with proper planning and a structured study approach, you can ace this subject. Here are some key points to keep in mind while preparing for PPOA:
1. Understand the Syllabus: Familiarize yourself with the syllabus of the PPOA paper. It covers topics such as accounting principles, concepts, and standards, preparation of financial statements, partnership accounting, and company accounts. Knowing the syllabus will help you create a study plan and allocate time to each topic accordingly.
2. Study Material: Make sure you have access to reliable study material that covers the entire syllabus. EduRev offers comprehensive study material for the CA Foundation PPOA course, which can be a valuable resource for your preparation. Utilize this material to gain a deep understanding of the concepts and practice solving different types of questions.
3. Create a Study Schedule: It is essential to create a study schedule and stick to it. Allocate specific time slots for each topic and revise regularly. Breaking down your study sessions into smaller, manageable chunks can help you cover the syllabus effectively without feeling overwhelmed.
4. Practice Questions: Regular practice is crucial to master the accounting concepts and improve your problem-solving skills. Solve a variety of practice questions, including past year papers and mock tests. This will help you identify your strengths and weaknesses and focus on areas that require more attention.
5. Mock Tests: Taking mock tests is an excellent way to assess your preparation and simulate the exam environment. EduRev provides mock tests specifically designed for the CA Foundation PPOA course. These tests will help you gauge your progress, improve time management skills, and boost your confidence for the actual exam.
6. Revision: Regular revision is the key to retaining and reinforcing what you have learned. Set aside dedicated time for revision, especially for topics that you find challenging. Review your notes, practice questions, and refer to the study material to ensure thorough understanding.
7. Seek Clarification: If you come across any doubts or concepts that are unclear, do not hesitate to seek clarification. Joining online forums or discussion groups can be helpful in getting your queries resolved. EduRev also provides a platform for students to interact and seek assistance from experienced teachers.
Remember, consistent effort and a focused approach are essential to excel in the Principles and Practice of Accounting paper. Stay motivated, practice regularly, and make the most of the resources available to you. With dedication and determination, you can achieve success in the CA Foundation exam.
Preparing for the Principles and Practice of Accounting (PPOA) paper in the CA Foundation exam can seem like a daunting task. However, with proper planning and a structured study approach, you can ace this subject. Here are some key points to keep in mind while preparing for PPOA:
1. Understand the Syllabus: Familiarize yourself with the syllabus of the PPOA paper. It covers topics such as accounting principles, concepts, and standards, preparation of financial statements, partnership accounting, and company accounts. Knowing the syllabus will help you create a study plan and allocate time to each topic accordingly.
2. Study Material: Make sure you have access to reliable study material that covers the entire syllabus. EduRev offers comprehensive study material for the CA Foundation PPOA course, which can be a valuable resource for your preparation. Utilize this material to gain a deep understanding of the concepts and practice solving different types of questions.
3. Create a Study Schedule: It is essential to create a study schedule and stick to it. Allocate specific time slots for each topic and revise regularly. Breaking down your study sessions into smaller, manageable chunks can help you cover the syllabus effectively without feeling overwhelmed.
4. Practice Questions: Regular practice is crucial to master the accounting concepts and improve your problem-solving skills. Solve a variety of practice questions, including past year papers and mock tests. This will help you identify your strengths and weaknesses and focus on areas that require more attention.
5. Mock Tests: Taking mock tests is an excellent way to assess your preparation and simulate the exam environment. EduRev provides mock tests specifically designed for the CA Foundation PPOA course. These tests will help you gauge your progress, improve time management skills, and boost your confidence for the actual exam.
6. Revision: Regular revision is the key to retaining and reinforcing what you have learned. Set aside dedicated time for revision, especially for topics that you find challenging. Review your notes, practice questions, and refer to the study material to ensure thorough understanding.
7. Seek Clarification: If you come across any doubts or concepts that are unclear, do not hesitate to seek clarification. Joining online forums or discussion groups can be helpful in getting your queries resolved. EduRev also provides a platform for students to interact and seek assistance from experienced teachers.
Remember, consistent effort and a focused approach are essential to excel in the Principles and Practice of Accounting paper. Stay motivated, practice regularly, and make the most of the resources available to you. With dedication and determination, you can achieve success in the CA Foundation exam.
Importance of Accounting for CA Foundation
Importance of Principles and Practice of Accounting Course for CA Foundation
Introduction
The Principles and Practice of Accounting course is an essential component of the CA Foundation program offered by EduRev. This course plays a crucial role in providing students with a strong foundation in the field of accounting. It covers the fundamental principles and practices that are necessary for a successful career in accounting.
Key Benefits of the Course
1. Comprehensive Coverage: The Principles and Practice of Accounting course covers all the essential concepts, techniques, and principles of accounting. It provides a comprehensive understanding of the subject, ensuring that students have a strong foundation to build upon.
2. Preparation for CA Foundation Exam: This course is specifically designed to prepare students for the CA Foundation exam. It covers all the topics and syllabus prescribed for the exam, helping students to master the subject and perform well in the exam.
3. Expert Faculty: EduRev's Principles and Practice of Accounting course is taught by experienced and knowledgeable faculty members. These experts have in-depth knowledge of the subject and guide students effectively, ensuring that they grasp the concepts thoroughly.
4. Interactive Learning: The course offers interactive learning experiences through various teaching techniques, including video lectures, quizzes, practice tests, and doubt-solving sessions. This helps students to actively engage with the content and enhance their understanding.
5. Real-life Applications: The Principles and Practice of Accounting course emphasizes the practical applications of accounting principles in real-life scenarios. This helps students to relate the theoretical concepts to practical situations, enhancing their problem-solving skills and critical thinking abilities.
6. Time and Cost-effective: By enrolling in the Principles and Practice of Accounting course, students can save their time and effort in searching for relevant study materials. The course provided by EduRev is cost-effective and provides all the necessary resources in one place, simplifying the learning process.
Conclusion
The Principles and Practice of Accounting course offered by EduRev for CA Foundation is of utmost importance for aspiring chartered accountants. It equips students with the necessary knowledge, skills, and confidence to excel in their accounting career. By enrolling in this course, students can ensure a solid foundation and increase their chances of success in the CA Foundation exam.
Accounting for CA Foundation FAQs
| 1. What are the basic principles of accounting? |  |
Ans. The basic principles of accounting are:
1. Going Concern Principle: This principle assumes that a business will continue to operate indefinitely, unless there is evidence to the contrary.
2. Accrual Principle: This principle states that accounting transactions should be recorded in the period in which they occur, not when the cash is received or paid.
3. Consistency Principle: This principle requires a business to use the same accounting methods and procedures from one period to another, ensuring comparability of financial statements.
4. Materiality Principle: This principle states that financial information should be reported if it is significant enough to influence the decisions of the users of the financial statements.
5. Objectivity Principle: This principle requires that accounting transactions and financial statements be based on objective evidence, such as invoices, receipts, and bank statements.
| 2. What is the difference between cash basis and accrual basis accounting? | |
Ans. The main difference between cash basis and accrual basis accounting is the timing of when revenue and expenses are recognized:
- Cash Basis Accounting: Revenue is recognized when cash is received, and expenses are recognized when cash is paid. This method is simpler but may not accurately reflect the financial position and performance of a business.
- Accrual Basis Accounting: Revenue is recognized when it is earned, regardless of when cash is received, and expenses are recognized when they are incurred, regardless of when cash is paid. This method provides a more accurate picture of a business's financial position and performance.
| 3. What is the importance of the matching principle in accounting? | |
Ans. The matching principle is an important concept in accounting that ensures that expenses are recognized in the same period as the revenue they help generate. This principle helps in accurately determining the net income of a business for a specific period. By matching expenses with the related revenue, it provides a more accurate measure of profitability. It also helps in comparing the financial performance of a business across different periods and facilitates better decision-making.
| 4. What is the purpose of financial statements in accounting? | |
Ans. The purpose of financial statements in accounting is to provide information about the financial position, performance, and cash flows of a business. These statements are prepared at the end of an accounting period and include the following:
1. Income Statement: It shows the revenue, expenses, and net income or loss of a business for a specific period.
2. Balance Sheet: It presents the assets, liabilities, and owner's equity of a business at a specific point in time.
3. Cash Flow Statement: It provides information about the cash inflows and outflows of a business during a specific period.
Financial statements help stakeholders, such as investors, creditors, and management, in assessing the financial health and performance of a business, making informed decisions, and fulfilling legal and regulatory requirements.
| 5. How does the accounting equation relate to the balance sheet? | |
Ans. The accounting equation, also known as the balance sheet equation, is the fundamental equation in accounting. It states that Assets = Liabilities + Owner's Equity. This equation represents the relationship between a company's resources (assets), its debts and obligations (liabilities), and the owners' investment in the business (owner's equity). The balance sheet is a financial statement that reflects this equation by listing the assets, liabilities, and owner's equity of a business at a specific point in time. The accounting equation ensures that the balance sheet always remains in balance, with the total value of assets equaling the sum of liabilities and owner's equity.
Best Coaching for Accounting for CA Foundation
If you are preparing for the CA Foundation exams and looking for the best coaching for Principles and Practice of Accounting, look no further than EduRev. EduRev offers free online coaching for Accounting for CA Foundation, making it an excellent resource for beginners in the field of accounting. With their user-friendly app and website, students can easily access online study material, download PDFs, and access summaries of important chapters.
EduRev's coaching for Principles and Practice of Accounting covers all the essential topics required for the CA Foundation syllabus. Whether you are looking to understand the basic principles of accounting, practice accounting concepts, or delve into financial, management, or cost accounting, EduRev has got you covered.
Their comprehensive study materials and tutorials are designed to provide a solid foundation in accounting and help students grasp complex concepts with ease. The lessons are structured in a way that caters to the needs of beginners, ensuring that they can understand and apply accounting principles effectively.
One of the major advantages of EduRev is that it offers free access to its online coaching and study materials. This makes it an ideal choice for students who are looking for quality education without any financial burden. Furthermore, EduRev's platform allows students to learn at their own pace, providing flexibility and convenience.
In conclusion, EduRev is the best coaching platform for Principles and Practice of Accounting for CA Foundation. With its free online coaching, comprehensive study materials, and user-friendly platform, EduRev ensures that students have all the necessary resources to excel in their accounting exams. So, if you are a beginner in accounting and aiming to ace the CA Foundation exams, EduRev is the perfect choice for you.
EduRev's coaching for Principles and Practice of Accounting covers all the essential topics required for the CA Foundation syllabus. Whether you are looking to understand the basic principles of accounting, practice accounting concepts, or delve into financial, management, or cost accounting, EduRev has got you covered.
Their comprehensive study materials and tutorials are designed to provide a solid foundation in accounting and help students grasp complex concepts with ease. The lessons are structured in a way that caters to the needs of beginners, ensuring that they can understand and apply accounting principles effectively.
One of the major advantages of EduRev is that it offers free access to its online coaching and study materials. This makes it an ideal choice for students who are looking for quality education without any financial burden. Furthermore, EduRev's platform allows students to learn at their own pace, providing flexibility and convenience.
In conclusion, EduRev is the best coaching platform for Principles and Practice of Accounting for CA Foundation. With its free online coaching, comprehensive study materials, and user-friendly platform, EduRev ensures that students have all the necessary resources to excel in their accounting exams. So, if you are a beginner in accounting and aiming to ace the CA Foundation exams, EduRev is the perfect choice for you.
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- Practice Quizzes and MCQs for each topic
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Course Speciality
This Course offers study material and test for Principles and Practice of Accounting
- Practice Quizzes and MCQs for each topic
- Detailed Documents for in-depth knowledge
- Full Subject Tests to sharpen your strategy before the final exam
- From Learning to Analyzing to Competition, the course has all elements for perfection
- Practice Quizzes and MCQs for each topic
- Detailed Documents for in-depth knowledge
- Full Subject Tests to sharpen your strategy before the final exam
- From Learning to Analyzing to Competition, the course has all elements for perfection
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Full Syllabus, Lectures & Tests to study Accounting for CA Foundation - CA Foundation | Best Strategy to prepare for Accounting for CA Foundation | Free Course for CA Foundation Exam
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