CA Foundation Syllabus | How to Prepare for CA Foundation PDF Download

 Page 1


PAPER 1: ACCOUNTING (100 MARKS) 
Objective 
To develop an understanding of the basic concepts and principles of accounting and 
apply the same in preparing financial statements and simple problem solving. 
Contents 
1. Theoretical Framework 
(i) Meaning and Scope of Accounting. 
(ii) Accounting concepts, principles and conventions. 
(iii) Capital and revenue expenditure, capital and revenue receipts, contingent 
assets and contingent liabilities. 
(iv) Accounting policies. 
(v) Accounting as a measurement discipline – valuation principles, 
accounting estimates. Accounting Standards - concepts and objectives. 
2. Accounting Process 
(i) Recording accounting transactions: principles of double entry book-
keeping, books of original entry - journal, subsidiary books, cash book, 
ledger-format, posting from journal and subsidiary books, balancing of 
accounts. 
(ii) Preparation of trial balance. 
(iii) Rectification of errors. 
3. Bank Reconciliation Statement 
Introduction, reasons and preparation of bank reconciliation statement. 
4. Inventories 
Meaning, basis and technique of inventory valuation, cost of inventory, net 
realizable value and record system. 
5. Depreciation and Amortisation 
Tangible and intangible assets-Meaning and difference, concepts, methods 
of computation and accounting treatment of depreciation / amortisation, 
change in depreciation method. 
6. Bills of exchange and Promissory notes 
Meaning of bills of exchange and promissory notes and their accounting 
treatment; accommodation bills. 
  
© The Institute of Chartered Accountants of India
Page 2


PAPER 1: ACCOUNTING (100 MARKS) 
Objective 
To develop an understanding of the basic concepts and principles of accounting and 
apply the same in preparing financial statements and simple problem solving. 
Contents 
1. Theoretical Framework 
(i) Meaning and Scope of Accounting. 
(ii) Accounting concepts, principles and conventions. 
(iii) Capital and revenue expenditure, capital and revenue receipts, contingent 
assets and contingent liabilities. 
(iv) Accounting policies. 
(v) Accounting as a measurement discipline – valuation principles, 
accounting estimates. Accounting Standards - concepts and objectives. 
2. Accounting Process 
(i) Recording accounting transactions: principles of double entry book-
keeping, books of original entry - journal, subsidiary books, cash book, 
ledger-format, posting from journal and subsidiary books, balancing of 
accounts. 
(ii) Preparation of trial balance. 
(iii) Rectification of errors. 
3. Bank Reconciliation Statement 
Introduction, reasons and preparation of bank reconciliation statement. 
4. Inventories 
Meaning, basis and technique of inventory valuation, cost of inventory, net 
realizable value and record system. 
5. Depreciation and Amortisation 
Tangible and intangible assets-Meaning and difference, concepts, methods 
of computation and accounting treatment of depreciation / amortisation, 
change in depreciation method. 
6. Bills of exchange and Promissory notes 
Meaning of bills of exchange and promissory notes and their accounting 
treatment; accommodation bills. 
  
© The Institute of Chartered Accountants of India
7. Preparation of Final accounts of Sole Proprietors 
Elements of financial statements, closing adjustment entries, trading account, 
profit and loss account and balance sheet of manufacturing and non-
manufacturing entities. 
8. Financial Statements of Not-for-Profit Organizations 
Significance and preparation of receipt and payment account, income and 
expenditure account and balance sheet, difference between profit and loss 
account and income and expenditure account. 
9. Accounts from Incomplete Records (excluding preparation of accounts based 
on ratios). 
10. Partnership and LLP Accounts 
(i) Final accounts of partnership firms and LLPs. 
(ii) Admission, retirement and death of a partner including treatment of 
goodwill.  
(iii) Dissolution of partnership firms and LLPs including piecemeal 
distribution of assets. 
11. Company Accounts 
(i) Definition of shares and debentures. 
(ii) Issue of shares and debentures, forfeiture of shares, re-issue of forfeited 
shares. 
(iii) Redemption of preference shares and debentures (excluding purchase 
and redemption of own debentures and sinking fund method). 
(iv) Accounting for bonus issue and right issue. 
  
© The Institute of Chartered Accountants of India
Page 3


PAPER 1: ACCOUNTING (100 MARKS) 
Objective 
To develop an understanding of the basic concepts and principles of accounting and 
apply the same in preparing financial statements and simple problem solving. 
Contents 
1. Theoretical Framework 
(i) Meaning and Scope of Accounting. 
(ii) Accounting concepts, principles and conventions. 
(iii) Capital and revenue expenditure, capital and revenue receipts, contingent 
assets and contingent liabilities. 
(iv) Accounting policies. 
(v) Accounting as a measurement discipline – valuation principles, 
accounting estimates. Accounting Standards - concepts and objectives. 
2. Accounting Process 
(i) Recording accounting transactions: principles of double entry book-
keeping, books of original entry - journal, subsidiary books, cash book, 
ledger-format, posting from journal and subsidiary books, balancing of 
accounts. 
(ii) Preparation of trial balance. 
(iii) Rectification of errors. 
3. Bank Reconciliation Statement 
Introduction, reasons and preparation of bank reconciliation statement. 
4. Inventories 
Meaning, basis and technique of inventory valuation, cost of inventory, net 
realizable value and record system. 
5. Depreciation and Amortisation 
Tangible and intangible assets-Meaning and difference, concepts, methods 
of computation and accounting treatment of depreciation / amortisation, 
change in depreciation method. 
6. Bills of exchange and Promissory notes 
Meaning of bills of exchange and promissory notes and their accounting 
treatment; accommodation bills. 
  
© The Institute of Chartered Accountants of India
7. Preparation of Final accounts of Sole Proprietors 
Elements of financial statements, closing adjustment entries, trading account, 
profit and loss account and balance sheet of manufacturing and non-
manufacturing entities. 
8. Financial Statements of Not-for-Profit Organizations 
Significance and preparation of receipt and payment account, income and 
expenditure account and balance sheet, difference between profit and loss 
account and income and expenditure account. 
9. Accounts from Incomplete Records (excluding preparation of accounts based 
on ratios). 
10. Partnership and LLP Accounts 
(i) Final accounts of partnership firms and LLPs. 
(ii) Admission, retirement and death of a partner including treatment of 
goodwill.  
(iii) Dissolution of partnership firms and LLPs including piecemeal 
distribution of assets. 
11. Company Accounts 
(i) Definition of shares and debentures. 
(ii) Issue of shares and debentures, forfeiture of shares, re-issue of forfeited 
shares. 
(iii) Redemption of preference shares and debentures (excluding purchase 
and redemption of own debentures and sinking fund method). 
(iv) Accounting for bonus issue and right issue. 
  
© The Institute of Chartered Accountants of India
PAPER 2: BUSINESS LAWS (100 MARKS) 
Objective 
To develop general legal knowledge of the law of Contracts, Sales and understanding 
of various forms of businesses and their functioning to regulate business environment 
and to acquire the ability to address basic application-oriented issues. 
Contents 
1. Indian Regulatory Framework 
Major Regulatory Bodies such as Ministry of Finance, Ministry of Corporate Affairs, 
SEBI, RBI, IBBI, Ministry of Law and Justice, etc. 
2. The Indian Contract Act, 1872 
General nature of contract, Consideration, Other essential elements of a valid 
contract, Performance of contract, Breach of contract, Contingent and Quasi 
Contract, Contract of Indemnity and Guarantee, Contract of Bailment and 
Pledge, Contract of Agency. 
3. The Sale of Goods Act, 1930 
Formation of the contract of sale, Conditions and Warranties, Transfer of 
ownership and Delivery of goods, Unpaid seller and his rights. 
4. The Indian Partnership Act, 1932 
General Nature of Partnership, Rights and Duties of partners, Reconstitution of 
firms, Registration and Dissolution of a firm. 
5. The Limited Liability Partnership Act, 2008 
Introduction-covering nature and scope, Essential features, Characteristics of 
LLP, Incorporation and Differences with other forms of organizations. 
6. The Companies Act, 2013 
Essential features of company, Corporate veil theory, Classes of companies, 
Types of share capital, Incorporation of company, Memorandum of Association, 
Articles of Association, Doctrine of Indoor Management. 
7. The Negotiable Instruments Act, 1881 
Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, 
Different provisions relating to Negotiation, Presentment of Instruments, Rules of 
Compensation. 
Note: If new legislations are enacted in place of the existing legislations, the syllabus 
would include the corresponding provisions of such new legislations with effect from dates 
notified by the Institute. 
The specific inclusions/ exclusions in the various topics covered in the syllabus will be effected 
every year by way of Study Guidelines, if required. 
  
© The Institute of Chartered Accountants of India
Page 4


PAPER 1: ACCOUNTING (100 MARKS) 
Objective 
To develop an understanding of the basic concepts and principles of accounting and 
apply the same in preparing financial statements and simple problem solving. 
Contents 
1. Theoretical Framework 
(i) Meaning and Scope of Accounting. 
(ii) Accounting concepts, principles and conventions. 
(iii) Capital and revenue expenditure, capital and revenue receipts, contingent 
assets and contingent liabilities. 
(iv) Accounting policies. 
(v) Accounting as a measurement discipline – valuation principles, 
accounting estimates. Accounting Standards - concepts and objectives. 
2. Accounting Process 
(i) Recording accounting transactions: principles of double entry book-
keeping, books of original entry - journal, subsidiary books, cash book, 
ledger-format, posting from journal and subsidiary books, balancing of 
accounts. 
(ii) Preparation of trial balance. 
(iii) Rectification of errors. 
3. Bank Reconciliation Statement 
Introduction, reasons and preparation of bank reconciliation statement. 
4. Inventories 
Meaning, basis and technique of inventory valuation, cost of inventory, net 
realizable value and record system. 
5. Depreciation and Amortisation 
Tangible and intangible assets-Meaning and difference, concepts, methods 
of computation and accounting treatment of depreciation / amortisation, 
change in depreciation method. 
6. Bills of exchange and Promissory notes 
Meaning of bills of exchange and promissory notes and their accounting 
treatment; accommodation bills. 
  
© The Institute of Chartered Accountants of India
7. Preparation of Final accounts of Sole Proprietors 
Elements of financial statements, closing adjustment entries, trading account, 
profit and loss account and balance sheet of manufacturing and non-
manufacturing entities. 
8. Financial Statements of Not-for-Profit Organizations 
Significance and preparation of receipt and payment account, income and 
expenditure account and balance sheet, difference between profit and loss 
account and income and expenditure account. 
9. Accounts from Incomplete Records (excluding preparation of accounts based 
on ratios). 
10. Partnership and LLP Accounts 
(i) Final accounts of partnership firms and LLPs. 
(ii) Admission, retirement and death of a partner including treatment of 
goodwill.  
(iii) Dissolution of partnership firms and LLPs including piecemeal 
distribution of assets. 
11. Company Accounts 
(i) Definition of shares and debentures. 
(ii) Issue of shares and debentures, forfeiture of shares, re-issue of forfeited 
shares. 
(iii) Redemption of preference shares and debentures (excluding purchase 
and redemption of own debentures and sinking fund method). 
(iv) Accounting for bonus issue and right issue. 
  
© The Institute of Chartered Accountants of India
PAPER 2: BUSINESS LAWS (100 MARKS) 
Objective 
To develop general legal knowledge of the law of Contracts, Sales and understanding 
of various forms of businesses and their functioning to regulate business environment 
and to acquire the ability to address basic application-oriented issues. 
Contents 
1. Indian Regulatory Framework 
Major Regulatory Bodies such as Ministry of Finance, Ministry of Corporate Affairs, 
SEBI, RBI, IBBI, Ministry of Law and Justice, etc. 
2. The Indian Contract Act, 1872 
General nature of contract, Consideration, Other essential elements of a valid 
contract, Performance of contract, Breach of contract, Contingent and Quasi 
Contract, Contract of Indemnity and Guarantee, Contract of Bailment and 
Pledge, Contract of Agency. 
3. The Sale of Goods Act, 1930 
Formation of the contract of sale, Conditions and Warranties, Transfer of 
ownership and Delivery of goods, Unpaid seller and his rights. 
4. The Indian Partnership Act, 1932 
General Nature of Partnership, Rights and Duties of partners, Reconstitution of 
firms, Registration and Dissolution of a firm. 
5. The Limited Liability Partnership Act, 2008 
Introduction-covering nature and scope, Essential features, Characteristics of 
LLP, Incorporation and Differences with other forms of organizations. 
6. The Companies Act, 2013 
Essential features of company, Corporate veil theory, Classes of companies, 
Types of share capital, Incorporation of company, Memorandum of Association, 
Articles of Association, Doctrine of Indoor Management. 
7. The Negotiable Instruments Act, 1881 
Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, 
Different provisions relating to Negotiation, Presentment of Instruments, Rules of 
Compensation. 
Note: If new legislations are enacted in place of the existing legislations, the syllabus 
would include the corresponding provisions of such new legislations with effect from dates 
notified by the Institute. 
The specific inclusions/ exclusions in the various topics covered in the syllabus will be effected 
every year by way of Study Guidelines, if required. 
  
© The Institute of Chartered Accountants of India
PAPER 3: QUANTITATIVE APTITUDE (100 MARKS) 
Objective 
a. To develop an understanding of the basic mathematical and statistical tools 
and apply the same in business, finance and economic situations. 
b. To develop logical reasoning skills. 
Contents 
The whole syllabus of Quantitative Aptitude shall be divided into three broad areas: 
• Business Mathematics 
• Logical Reasoning 
• Statistics 
PART A: BUSINESS MATHEMATICS (40 MARKS) 
1. Ratio and proportion, Indices and Logarithms: Ratio and proportion and 
Time and work-related problems, Laws of Indices, Exponents and Logarithms and 
Anti Logarithms. 
2. Equations: Equations: Linear Simultaneous linear equations up to three variables, 
Quadratic and Cubic equations in one variable. Applications in Business related 
problems. 
3. Linear Inequalities: Linear Inequalities: Linear Inequalities in one and two 
variables and the solution space. 
4. Mathematics of Finance: 
• Simple Interest  
• Compound interest 
• Nominal and Effective Rate of Interest  
• Present Value 
• Net Present Value  
• Future Value  
• Perpetuity  
• Annuities 
• Sinking Funds  
• Calculating of EMI 
• Calculations of Returns: Nominal and Effective rate of Return  
• Compound Annual growth rate (CAGR) 
© The Institute of Chartered Accountants of India
Page 5


PAPER 1: ACCOUNTING (100 MARKS) 
Objective 
To develop an understanding of the basic concepts and principles of accounting and 
apply the same in preparing financial statements and simple problem solving. 
Contents 
1. Theoretical Framework 
(i) Meaning and Scope of Accounting. 
(ii) Accounting concepts, principles and conventions. 
(iii) Capital and revenue expenditure, capital and revenue receipts, contingent 
assets and contingent liabilities. 
(iv) Accounting policies. 
(v) Accounting as a measurement discipline – valuation principles, 
accounting estimates. Accounting Standards - concepts and objectives. 
2. Accounting Process 
(i) Recording accounting transactions: principles of double entry book-
keeping, books of original entry - journal, subsidiary books, cash book, 
ledger-format, posting from journal and subsidiary books, balancing of 
accounts. 
(ii) Preparation of trial balance. 
(iii) Rectification of errors. 
3. Bank Reconciliation Statement 
Introduction, reasons and preparation of bank reconciliation statement. 
4. Inventories 
Meaning, basis and technique of inventory valuation, cost of inventory, net 
realizable value and record system. 
5. Depreciation and Amortisation 
Tangible and intangible assets-Meaning and difference, concepts, methods 
of computation and accounting treatment of depreciation / amortisation, 
change in depreciation method. 
6. Bills of exchange and Promissory notes 
Meaning of bills of exchange and promissory notes and their accounting 
treatment; accommodation bills. 
  
© The Institute of Chartered Accountants of India
7. Preparation of Final accounts of Sole Proprietors 
Elements of financial statements, closing adjustment entries, trading account, 
profit and loss account and balance sheet of manufacturing and non-
manufacturing entities. 
8. Financial Statements of Not-for-Profit Organizations 
Significance and preparation of receipt and payment account, income and 
expenditure account and balance sheet, difference between profit and loss 
account and income and expenditure account. 
9. Accounts from Incomplete Records (excluding preparation of accounts based 
on ratios). 
10. Partnership and LLP Accounts 
(i) Final accounts of partnership firms and LLPs. 
(ii) Admission, retirement and death of a partner including treatment of 
goodwill.  
(iii) Dissolution of partnership firms and LLPs including piecemeal 
distribution of assets. 
11. Company Accounts 
(i) Definition of shares and debentures. 
(ii) Issue of shares and debentures, forfeiture of shares, re-issue of forfeited 
shares. 
(iii) Redemption of preference shares and debentures (excluding purchase 
and redemption of own debentures and sinking fund method). 
(iv) Accounting for bonus issue and right issue. 
  
© The Institute of Chartered Accountants of India
PAPER 2: BUSINESS LAWS (100 MARKS) 
Objective 
To develop general legal knowledge of the law of Contracts, Sales and understanding 
of various forms of businesses and their functioning to regulate business environment 
and to acquire the ability to address basic application-oriented issues. 
Contents 
1. Indian Regulatory Framework 
Major Regulatory Bodies such as Ministry of Finance, Ministry of Corporate Affairs, 
SEBI, RBI, IBBI, Ministry of Law and Justice, etc. 
2. The Indian Contract Act, 1872 
General nature of contract, Consideration, Other essential elements of a valid 
contract, Performance of contract, Breach of contract, Contingent and Quasi 
Contract, Contract of Indemnity and Guarantee, Contract of Bailment and 
Pledge, Contract of Agency. 
3. The Sale of Goods Act, 1930 
Formation of the contract of sale, Conditions and Warranties, Transfer of 
ownership and Delivery of goods, Unpaid seller and his rights. 
4. The Indian Partnership Act, 1932 
General Nature of Partnership, Rights and Duties of partners, Reconstitution of 
firms, Registration and Dissolution of a firm. 
5. The Limited Liability Partnership Act, 2008 
Introduction-covering nature and scope, Essential features, Characteristics of 
LLP, Incorporation and Differences with other forms of organizations. 
6. The Companies Act, 2013 
Essential features of company, Corporate veil theory, Classes of companies, 
Types of share capital, Incorporation of company, Memorandum of Association, 
Articles of Association, Doctrine of Indoor Management. 
7. The Negotiable Instruments Act, 1881 
Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, 
Different provisions relating to Negotiation, Presentment of Instruments, Rules of 
Compensation. 
Note: If new legislations are enacted in place of the existing legislations, the syllabus 
would include the corresponding provisions of such new legislations with effect from dates 
notified by the Institute. 
The specific inclusions/ exclusions in the various topics covered in the syllabus will be effected 
every year by way of Study Guidelines, if required. 
  
© The Institute of Chartered Accountants of India
PAPER 3: QUANTITATIVE APTITUDE (100 MARKS) 
Objective 
a. To develop an understanding of the basic mathematical and statistical tools 
and apply the same in business, finance and economic situations. 
b. To develop logical reasoning skills. 
Contents 
The whole syllabus of Quantitative Aptitude shall be divided into three broad areas: 
• Business Mathematics 
• Logical Reasoning 
• Statistics 
PART A: BUSINESS MATHEMATICS (40 MARKS) 
1. Ratio and proportion, Indices and Logarithms: Ratio and proportion and 
Time and work-related problems, Laws of Indices, Exponents and Logarithms and 
Anti Logarithms. 
2. Equations: Equations: Linear Simultaneous linear equations up to three variables, 
Quadratic and Cubic equations in one variable. Applications in Business related 
problems. 
3. Linear Inequalities: Linear Inequalities: Linear Inequalities in one and two 
variables and the solution space. 
4. Mathematics of Finance: 
• Simple Interest  
• Compound interest 
• Nominal and Effective Rate of Interest  
• Present Value 
• Net Present Value  
• Future Value  
• Perpetuity  
• Annuities 
• Sinking Funds  
• Calculating of EMI 
• Calculations of Returns: Nominal and Effective rate of Return  
• Compound Annual growth rate (CAGR) 
© The Institute of Chartered Accountants of India
5. Permutations and Combinations: Basic concepts of Permutations and 
combinations: Introduction, the factorial, permutations, results, circular 
permutations, permutations with restrictions, Combinations with standard results. 
6. Sequence and Series: Introduction Sequences, Series, Arithmetic and Geometric 
progression, Relationship between AM and GM and Sum of n terms of special series 
and Business Applications. 
7. Sets, Relations, and Functions. Basics of Limits and Continuity functions. 
8. Basic applications of Differential and Integral calculus in Business and 
Economics (Excluding the trigonometric applications). 
PART B: LOGICAL REASONING (20 MARKS) 
9. Number series coding and Decoding and odd man out 
10. Direction Tests 
11. Seating Arrangements 
12. Blood Relations 
PART C: STATISTICS (40 MARKS) 
13. Unit 1: Statistical Representation of Data: Diagrammatic representation of 
data, Frequency distribution, Graphical representation of Frequency Distribution –
Histogram, Frequency Polygon, Ogive, Pie-chart. 
 Unit:2 Sampling: Basic principles of sampling theory, comparison between 
sample survey and complete enumeration, some important terms associated 
sampling types of sampling, sampling and non-sampling errors. 
14. Measures of Central tendency and Dispersion: Measures of Central Tendency 
and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile 
Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile 
Deviation. 
15. Probability: Independent and dependent events; mutually exclusive events. Total 
and Compound Probability and Bayes’ theorem. 
16. Theoretical Distributions: Random variables, Discrete and Continuous Random 
variables, Expectation of a discrete random variable, Theoretical Distributions: 
Binomial Distribution, Poisson distribution – basic application and Normal 
Distribution – basic applications. 
17. Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of 
Correlation Rank Correlation, Regression lines, Regression equations, Regression 
coefficients. 
18. Index Numbers: Uses of Index Numbers, Problems involved in construction of 
Index Numbers, Methods of construction of Index Numbers. BSE SENSEX and NSE. 
 
© The Institute of Chartered Accountants of India