CA Foundation Course Subjects
CA Foundation Course and Subjects are explained in Detail in this article. With effect from 1st July 2017, ICAI has introduced new syllabus for the CA exams resultant CPT is replaced by CA Foundation and CA IPC is replaced by CA Intermediate. The CA Foundation is an entry level test for the students who want to pursue the Chartered Accountancy Course.
The entire CA Foundation Course is divided among four subjects
- Principles and Practices of Accounting (100 Marks)
- Business Law and Business Correspondence and Reporting (100 Marks)
- Business Law (60 Marks)
- Business Correspondence and Reporting (40 Marks)
- Business Mathematics and Logical Reasoning and Statistics (100 Marks)
- Business Mathematics (40 Marks)
- Logical Reasoning (20 Marks)
- Statistics (40 Marks)
- Business Economics and Business and Commercial Knowledge (100 Marks)
- Business Economics (60 Marks)
- Business and Commercial Knowledge (40 Marks)
To pass the CA Foundation exam, one has to secure minimum 40% marks in each and every CA Foundation subject along with 50% marks in aggregate of all the subjects.
One can also download the CA Foundation syllabus from the given link. The exam for the CA Foundation course will conduct from May 2018 and onwards.
Topics added in the new scheme i.e. CA Foundation Course-
Paper 1: Principles and Practices of Accounting
Topics added –
- Average Due date and current account.
- Departmental Accounts.
Paper 2: (Part 1) : Business Law
Topics added –
- The Limited Liability Partnership Act, 2008: Introduction- Covering Nature and Scope, Essential features, Characteristics of LLP, Incorporation and differences with other forms of organisations.
- The Companies Act, 2013 (Section 1 to 22): Important definitions, Introduction of Company and Corporate Veil theory, Classes of Companies, Conversion of company, incorporation of company, Memorandum of Association, Articles of Association, Alteration of Memorandum and Articles, Doctrine of Indoor Management, Conversion of Companies already registered, Promoters, Service of Documents.
Paper 2 (Part II) : General English
|Section A||Section B||Section C|
|Comprehension Passages and Note Making||Developing Writing Skills||Basic English Grammar|
Paper 4 (Part 1): Business Economics
Topics added –
- Introduction to Business Economics
- Meaning of Business Economics
- Objectives of Business Firm – Profit Maximization, Sales Maximization, Growth Maximization.
- Business Cycles
- Meaning of Business Cycles
- Phases of Business Cycles
- Features of Business Cycles
- Causes behind these Cycles.
Apart from the above changes Macro Economics and Indian Economics have been deleted from the entrance level.
Paper 4 (Part II) : Business and Commercial Knowledge
This is newly added in the CA Foundation syllabus. So, entire syllabus is newly added.
CA Foundation Course Complete Syllabus
CA Foundation Subject 1 : PRINCIPLES AND PRACTICES OF ACCOUNTING (100 MARKS)
To develop conceptual understanding of the fundamentals of financial accounting system and accounting for special transactions
- Theoretical Framework
Meaning and Scope of accounting
Accounting Concepts, Principles and Conventions
Accounting Standards – concepts, objectives, benefits
Accounting as a measurement discipline – valuation principles, accounting estimates
- Accounting Process
Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof.
- Bank Reconciliation Statement
Basis of inventory valuation and record keeping.
- Depreciation accounting
Methods, computation and accounting treatment of depreciation, Change in depreciation methods.
- Preparation of Final Accounts for Sole Proprietors
- Simple Problems on Financial Statements of Not-for-Profit Organisations
- Accounts from Incomplete Records.
- Average Due Date and Account Current
- Accounting for Special Transactions
Bills of exchange and promissory notes
Sale of goods on approval or return basis (e) Departmental accounts.
- Partnership Accounts
Final accounts of partnership firms – Basic concepts of admission, retirement and death of a partner including treatment of goodwill.
- Introduction to Company Accounts
Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.
CA Foundation Subject 2 (Part I): Business Laws (60 Marks)
“To test the general comprehension of elements of Mercantile Law including Company Law”
The Indian Contract Act, 1872: An overview of Sections 1 to 75 covering the general nature of contract, consideration, other essential elements of a valid contract, performance of contract and breach of contract.
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.
The Indian Partnership Act, 1932: General Nature of Partnership, Rights and duties of partners, Registration and dissolution of a firm.
The Limited Liability Partnership Act, 2008: Introduction- covering nature and scope, Essential features, characteristics of LLP, Incorporation and differences with other forms of organizations.
The Companies Act, 2013 [section 1 to 22]: Important definitions, Introduction of company & corporate veil theory, Classes of companies, Conversion of company, Incorporation of company, Memorandum of Association, Articles of Association, Alteration of Memorandum and Articles, Doctrine of Indoor Management, Conversion of companies already registered, Promoters, Service of documents.
Here, chapters 1 to 4 carries 45 marks and chapter 5 carries 15 marks.
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.
CA Foundation Subject 2 (Part-II) General English
Topic : Comprehension Passages and Note Making
Subtopic : Comprehension Passages
Subtopic: Note Making
Topic: Developing Writing Skills
Subtopic: Article Writing
Subtopic: Report Writing
Subtopic : Writing Formal Letters
Subtopic : Writing Mails
Subtopic : Resume Writing
Topic: Basic English Grammar
Chapter-1 Introduction to Basic Writing
Chapter-2: Nouns, Pronouns and Verbs
Chapter-3 Articles, Adjectives and Adverbs
Chapter-4 Prepositions, Conjunctions and Interjections
Chapter -5 Direct-Indirect, Active -Passive Speech
Chapter 6 :Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations and Idioms.
CA Foundation Subject 3: Business Mathematics Logical Reasoning and Statistics (One Paper- Three hours- 100 Marks)
OBJECTIVES: The Objective of this course is to familiarize students with basic Mathematical and Statistical tools with emphasis on applications to Business, Finance and Economic situations .Logical reasoning tests helps the students thinking power and mental applicability skills.
The whole syllabus of Business Mathematics Logical Reasoning and Statistics shall be divided into two broad areas.
Business Mathematics Logical reasoning (60 Marks)
Business Statistics (40 Marks)
Business Mathematics and Logical reasoning (60 marks)
Business Mathematics: 40 marks
Chapter-1(Ratio and proportion, Indices and Logarithms ) o Ratio and proportion and Time and work related problems, Laws of Indices, Exponents and Logarithms and Antilogarithms.
Chapter-2 (Equations and Matrices) Equations: Linear Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable. o Algebra of Matrices, Inverse of a Matrix and determinants, solving system of equations using matrix method (Cramer’s rule) involving not more than three variables.
Chapter-3 (Inequalities) o Inequalities: Linear Inequalities in one variable and the solution space
Chapter -4 Time value of Money (Financial Mathematics) o Time value of Money Simple Interest
Effective Rate of Interest
Net Present Value
Calculating of EMI Calculations of Returns:
Nominal Rate of Return
Effective Rate of Return
Compound Annual growth rate (CAGR)
Chapter -5 (Sets Functions and Relations)
Chapter -6 (Basic applications of Differential and Integral calculus (Excluding the trigonometric applications)
Chapter-7 (Permutations and Combinations) o Basic concepts of Permutations and combinations: Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions, Combinations with standard results.
Chapter-8 (Sequence and Series ) o Introduction Sequences, Series, Arithmetic and Geometric progression,
Relationship between AM and GM and Sum of n terms of special series.
Logical Reasoning: (20 marks)
Number series coding and Decoding and odd man out.
Business Statistics (40 marks)
Chapter -14 (Statistical description of Data)
Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart.
Chapter -15 (Measures of Central tendency and Dispersion )
Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Coefficient of Variation, Coefficient of Quartile Deviation.
Chapter-16 (Correlation and Regression)
Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, Regression coefficients.
Chapter -17 (Theoretical Distributions)
Theoretical Distributions: Binomial Distribution, Poisson distribution – basic application and Normal Distribution – basic applications.
Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability; Bayes’ theorem; and Mathematical Expectation.
Chapter-19 (Index Numbers and Time Series)
Index Numbers:Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers.
Time Series Analysis – basic application including Moving Average, Moving Average Method, and Method of Least Squares.
Chapter-20 (Sampling Theory and Testing of Hypothesis)
(a)Sampling theory: Basic Principles of Sample survey, Comparison between sample survey and enumeration, errors in Sample survey, some important terms associated with sampling, types of sampling.
(b)Testing of Hypothesis, Large sample tests (Test for means, test for proportions and test for Standard deviations) and sample tests applications of t, F-distribution (Variance ratio test) and Chi-square test.
CA Foundation Subject 4: Business Economics & Business and Commercial Knowledge (100 Marks)
Part I: Business Economics (60 Marks)
- Introduction to Business Economics
(a) Meaning of Business Economics
(b) Objectives of Business Firm- Profit Maximization, Sales Maximization, Growth Maximization.
- Theory of Demand and Supply
(a) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity (b) Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach (c) Meaning and determinants of supply, Law of supply and Elasticity of supply.
(d) Demand Forecasting
- Theory of Production and Cost
(a) Meaning and Factors of production
(b) Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium
(c) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
- Price Determination in Different Markets
(a) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly (b) Price determination in these markets.
- Business Cycles
Meaning of Business Cycles
Phases of Business Cycles
Features of Business Cycles.
Causes behind these Cycles.
CA Foundation Subject 4- Part II Business and Commercial Knowledge
Have a basic knowledge of common business and commercial concepts.
Inculcate a habit to remain updated about developments in the business and commercial world.
Students are expected to read at least one financial newspaper and one business magazine on a regular basis. They may also watch a business channel to remain updated about the developments related to commercial world.
- Introduction to Business
Nature of Business, Profession and Employment. Objectives of Business. Business and Commercial Knowledge. Economic and Non-Economic Activities.
- Business Environment
Micro and Macro Environment, Elements of Micro Environment –
Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment – Demographic, Economic, Political-legal, Sociocultural, Technological, Global Environment.
- Business organizations Top Indian and Global Companies.
- Government Policies for Business Growth
Policies creating conducive business environment – Startups,E-commerce.
Liberalization, Privatization, Foreign Direct Investment.
- Organizations facilitating Business
Indian regulatory bodies – SEBI, RBI, IRDA, CCI, FMC, CBDT, CBEC Indian Development Banks – IFCI, IDBI, SIDBI, EXIM Bank,NABARD
Global organizations and world trade bodies – IMF, ADB, WTO, OECD, SAARC, ASEAN, OPEC.
Accounting Bodies – IFAC,IASB, IESB, CAPA, SAFA, AOSSG.
- Common Business and Commercial Terminologies
Finance, Marketing and other business terms. Stock Market Terminology.