CA Foundation

ICAI CA Foundation Course Syllabus Novemeber 2018

The Chartered Accountancy institute has introduced a drastic change in the CA Curriculum. The new CA CPT Course by replacing CPT (Common Proficiency Course) with CA Foundation Course. The main motto behind introducing CA Foundation is to make the entry-level difficult than earlier. With the introduction of Demonetization and  GST (Goods and Service Tax), the demand for Chartered Accountants have increased and also increasing day by day. Chartered Accountant plays a major role in creating the economy better, PM Narendra Modi Ji himself said that CA’s signature has more value than PM’s signature. So, ICAI is taking a new initiative to create more efficient Chartered Accountants by implementing CA Foundation in place of CPT.

CA Foundation is an entry level test designed to get entry into the Chartered Accountancy Course. The student can get register in CA Foundation course after appearing in the  12th examination and can appear in this exam after passing the 12th examination.

CA Foundation exams conduct twice in a year MAY/NOV same as other levels Intermediate and Final. However, CPT exams are conducting in July/Dec. Before appearing in the exam you must complete the four months study period. For appearing in November 2018, you need to register yourself on or before 30th June 2018.

 

 Download the CA Foundation Syllabus Download PDF

 CA Foundation November 2018 Paper Pattern and Marking Scheme

CA Foundation conducts at 400 marks comparing to CPT (Common Proficiency Test) which conducts at 200 marks. It comprises of four subjects two of which are subjective and other two are objective. The paper pattern earlier was completely objective but seeing the demand, the subjective pattern has introduced in some subjects. In addition to this two new subjects has also introduced, after seeing their importance, General English and Business and Commercial Knowledge.

The first paper in CA Foundation is Principles and Practices of Accounting which is replacing Fundamentals of Accounting, second paper is Business Laws and Business Correspondence and Reporting in which a new subject General English has added. The above two papers are subjective in the  CA Foundation exams. However, the third paper is of Business Mathematics, Logical Reasoning and Statistics and paper four is Business Economics and Business and Commercial Knowledge, in which Business and Commercial Knowledge has newly added.  The last-second papers are objective same as earlier.

We can understand this in a better way through the mode and format given below:-

Papers in CA Foundation Course –

    1. Principles and practices of Accounting(100 Marks)
    2. Business Laws and Business Correspondence and reporting  (100 Marks)
      • Business Laws (60 Marks)
      • Business Correspondence and Reporting (40 Marks)
    3. Business Mathematics and Logical Reasoning and Statistics. (100 Marks)
      • Business Mathematics(40 Marks) and Logical Reasoning (20 Marks)
      • Statistics (40 Marks)
    4. Business Economics and Business and Commercial Knowledge (100 Marks)
      • Business Economics(60 Marks)
      • Business and Commercial Knowledge (40 Marks)

CA Foundation Syllabus

We are providing you complete CA Foundation syllabus under separate heads for ease of your understanding. This CA Foundation new syllabus is applicable for November 2018 Exams and onwards.

Paper – 1:  Principles and Practices of Accounting Syllabus (100 Marks)

Fundamentals of Accounting is renamed by Principles and Practices of Accounting. This is the basic understanding of Accounting what students have gone through in 11th and 12th standard.

The understanding of basic concepts and application of the same in preparing Financial statements at the initial level.

Topics Covered

  1. Theoretical Framework
  2. Accounting Concepts, Principles, and Conventions.
  3. Accounting Terminology- Glossary
  4. Capital and Revenue Expenditure, Capital and Revenue Receipts, contingent assets and contingent liabilities.
  5. Accounting Policies
  6. Accounting as a Measurement Discipline- Valuation Principles and Accounting Estimates.
  7. Accounting Standards- Concepts and objectives.
  8. Indian Accounting Standards(IND AS) – Concepts and Objectives (Just an Overview)

Accounting Process

  1. Books of Accounts
  2. Preparation of Trial Balance
  3. Rectification of Errors

Bank Reconciliation Statements

Introductory part, and its preparation.

Inventories

Calculation of cost, Net Realisable Value, and its disclosure in the Financial Statements.

Depreciation Accounting and its Concepts

Methods of Depreciation, Its computation, treatment and relevant disclosure in the Financial Statements.

Accounting for Special Transactions

  1. Bill of Exchange and Promissory Notes : Meaning and its treatment in the Accounts
  2. Sale of Goods on approval or return basis :  Meaning and its accounting treatment.
  3. Consignments : Meaning of consignment transactions, the  difference between sale and consignment, the accounting treatment of such transactions and events in the books of consignor and consignee.
  4. Joint Venture for Non – Corporate Entities : Meaning and features, Distinction between a joint venture and partnership and Methods of maintaining Joint Venture Accounts.
  5. Royalty Accounts : Meaning and methods of maintaining such accounts.
  6. Average due date : Meaning and its calculation in various situations.
  7. Account Current : Meaning and Methods of its preparation.

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.

Partnership Accounts –

  1. Final Accounts of Partnership Firms
  2. Admission, Retirement, and Death of a Partner including Treatment of Goodwill
  3. Introduction to LLPs and Distinction of LLPs from Partnership.

Financial Statements of Non-Profit Organisations

The Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Difference between Profit and Loss Account and Income and Expenditure Account. Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.

Introduction to Company Accounts

  1. Definition of shares and debentures
  2. The issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
  3. Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.
  4. Basic Accounting Ratios (Profitability, Solvency, Liquidity and Turnover)

Paper -2 : Business Laws and Business Correspondence and Reporting Syllabus

Section A – BUSINESS LAWS Syllabus (60 Marks)

Basic Understanding of the General Laws which are required to comply with the attestation work and preparation of Financial Statements.

Contents

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, breach of contract, Contingent and Quasi Contract.

The Sales 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, Reconstitution of firms, 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 – 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

Section B -Business Correspondence and Reporting Syllabus (40 Marks)

This subject is newly introduced in CA Foundation course seeing their requirement in the corporate world. The Basic aim is to develop good communication skills for Business Correspondence and reporting.

Contents

  • PART – I
  • Communication
    1. Types
    2. Directions
    3. Network
    4. Process
    5. Problems
    6. Barriers
    7. Types of Communications
      1. Interpersonal Skills
      2. Listening Skills
      3. Emotional Intelligence
    8. Exercises with Answers

    PART -II Sentence Type and Word Power

  • Sentence Types (Direct-Indirect , Active-Passive Speech)
    1. Sentence: Definition
    2. Classification of sentence based on connotation
      1. Assertive sentences
      2. Interrogative sentences
      3. Imperative sentences
      4. Exclamatory sentences
      5. Optative sentences
    3. Sentence Structure
      1. Subject and Predicate
      2. Verb (Auxiliary, Finite)
      3. Object (Direct , Indirect)
      4. Complement
      5. Adjunct or Adverbial
      6. Clause Structure
      7. Types of Clauses
        1. Independent clauses
        2. Dependent clauses
        3. Relative or noun clauses
    4. Types of sentences
      1. Simple sentence
      2. Compound sentence
      3. Complex sentence
      4. Compound-complex sentence
    5. Direct-Indirect Speech
      1. Introduction
      2. Procedure for converting Direct speech into Indirect speech
        1. Rules for converting Direct speech into Indirect speech
        2. Change in pronouns
        3. Change in tenses
        4. Change in modals
        5. Changes for Imperative sentences
        6. Changes for Exclamatory sentences
        7. Changes for Interrogative sentences
        8. Punctuation in Direct speech
      3. Rules for converting Indirect speech into Direct speech
    6. Active Passive Voice: Introduction
      1. Usage: Active Vs passive voice
      2. Reasons for using Passive voice
      3. Changing Passive voice to Active voice
      4. Changing Active voice to Passive voice
      5. Suggestions for using Active and Passive voice
    7. Verbs Voice: Active or passive
    8. Exercises with Answers
  • Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations & Idioms
    1. Introduction
    2. Significance of improving vocabulary
    3. How to improve vocabulary
    4. Root words
    5. Synonyms and Antonyms
    6. Words formed by using Prefixes
    7. Words formed by using Suffixes
    8. Phrasal verbs
    9. Collocations
    10. Idioms
    11. Exercises with Answers

    Part III: Comprehension Passages and Note-Making

  • Comprehension Passages
    1. Introduction to Comprehension Passages
    2. Points to ponder
    3. Sample Passages with answers
    4. Exercises with Answers
  • Note Making
    1. Introduction to Note Making
    2. Significance of Note Making
    3. Detailed Format Heading(Title)
      1. Sub-heading
      2. Indentation
      3. Points
      4. Use of abbreviations
      5. Summary
      6. Content
      7. Expression
    4. iv. Steps to Comprehend and summarize text
    5. v. Helpful Hints
    6. vi. Sample Passages with Notes
    7. vii. Exercises with Answers

    Part IV: Developing Writing Skills

  • Introduction to Basic Writing
    1. Introduction
    2. Process of writing
    3. Styles of Writing
    4. Significance of writing skills for students
    5. Writing Conventions
    6. Characteristics of good writing
    7. Do’s and Don’ts of good writing
    8. Exercises with Answers Hints
  • Précis Writing
    1. What is Précis writing?
    2. Features of good Précis writing
    3. How to write a Précis
    4. Do’s and Don’ts of Précis writing
    5. Examples(Passages with Précis)
    6. Exercises with Answers
  • Article Writing
  • What is an Article?
  • Essential elements of Article Writing
  • Detailed Format
    1. Title
    2. By- Writer’s Name
    3. Body
      1. Introduction
      2. Main Idea-Support
      3. Conclusion
    4. Sample Articles
    5. Exercises with Answers
  • Report Writing
    1. What is a Report?
    2. Essential elements of Report Writing
    3. Kinds of Reports
      1. Reporting for a Meeting/Assembly
      2. Reporting for a Newspaper
      3. Reporting for a Magazine
    4. Detailed Format for (iii) above
    5. Title
    6. By- Writer’s Name
    7. Place, Date
    8. Body
      1. What
      2. When
      3. Where
      4. Who
      5. How
    9. Tips and Conventions of Report Writing
    10. Sample Reports
    11. Exercises with Answers Clues
  • Writing Formal Letters
    1. Types of Letters
      1. Circulars
      2. Complaints
      3. Memos
      4. Promotional Content
      5. Sales
      6. Recovery/Remittances
    2. Detailed format for (I) above
      1. Date
      2. Salutation
      3. Subject
      4. Body of the letter
        1. First paragraph
        2. Second paragraph
      5. Complimentary Closure
    3. Points to Remember
    4. Sample Letters
    5. Exercises with Answers Clues
  • Writing Formal Mails
    1. How to Write a Formal Mail?
    2. Writing Effective Mails
    3. Essential elements of Mails
      1. Subject line
      2. Formal Greetings
      3. Target Audience(Reader)
      4. Clarity and Conciseness
      5. Formal Closing
      6. Proof read
      7. Feedback
    4. Tips and Conventions of Mails
    5. Sample Mails
    6. Exercises with Answers Clues
  • Resume Writing
    1. Essential Elements of Resume
      1. Name and contact details
      2. Objective Summary
      3. Academic Qualifications and Achievements
      4. Co-curricular Achievements
      5. Training Programs attended/completed
      6. Strengths
      7. Interests/Hobbies
      8. Declaration
      9. Signature
    2. Resume Writing Tips and Conventions
    3. Sample Resumes
    4. Exercises with Answers Clues
  • Meetings
    1. Notice
    2. Agenda
    3. Drafting minutes
    4. Action Taken Report
    5. Exercises with Answers Clues.

Paper – 3  BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS Syllabus

Objective

  1. To develop an understanding of the basic Maths and Statistical tools and their application in Business, Finance, and Economics.
  2. To develop logical reasoning skills and apply the same in simple problem-solving.

Contents

Part A: Business Mathematics Syllabus (40 Marks)

  • Ratio and Proportion, Indices and Logarithms

    Ratio and Proportion (Business Applications related to Ratio and Proportion) Laws of Indices, Exponents and Logarithms and Anti-Logarithms.

  • Equations and Matrices

    1. Equations: Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable.
    2. Matrices: Algebra of Matrices, Inverse of a Matrix and determinants, solving system of equations by Cramer’s Rule (involving not more than three variables).
  • Linear Inequalities with Objective Functions and Optimization w.r.t. objective function.

  • Time value of Money

    1. Simple Interest
    2. Compound interest
    3. Depreciation
    4. Effective Rate of Interest
    5. Present Value
    6. Net Present Value
    7. Future Value
    8. Perpetuity
    9. Annuities
    10. Sinking Funds
    11. Valuation of Bonds
    12. Calculations of Returns
      1. Nominal Rate of Return
      2. Effective Rate of Return
      3. Compound Annual Growth Rate (CAGR).
  • Permutations and Combinations

    Basic concepts of Permutations and Combinations: Introduction, Factorial, Permutations results, Circular Permutations, Permutations with restrictions, Combinations with standard results.

  • Sequence and Series

    Introduction Sequences, Series, Arithmetic and Geometric progression, Relationship between AM and GM and Sum of n terms of special series

  • Sets, Relations and Functions

  • Basic applications of Differential and Integral calculus

    (Excluding the trigonometric applications), Applications of Marginal Cost and Marginal Revenue etc.

Part B: Logical Reasoning Syllabus (20 Marks)

  • Number series, Coding and Decoding and odd man out.
  • Direction Tests
  • Seating Arrangements
  • Blood Relations
  • Syllogism.

Part C: Statistics Syllabus (40 Marks)

  • 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.

  • 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.

  • Probability

    Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.

  • Theoretical Distributions

    Theoretical Distributions: Binomial Distribution, Poisson distribution – Basic application and Normal Distribution – Basic applications.

  • Correlation and Regression

    Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Probable Error and Probable limits. Regression lines, Regression equations, Regression coefficients.

  • Index Numbers and Time Series

    1. Index Numbers : Uses of Index Numbers, Problems involved in the construction of Index Numbers, Methods of construction of Index Numbers.
    2. Time Series Analysis : Components of Time Series and Calculation of Trend by Moving Average Method.

Paper 4- Business Economics and Business and Commercial Knowledge Syllabus

Part I – Business Economics Syllabus (60 Marks)

Objective

To develop an understanding of concepts and theories in Business Economics and apply such concepts and theories in simple problem solving.

Content

  • Introduction to Business Economics

    1. Meaning and scope of Business Economics
    2. Basic problems of an Economy and role of Price Mechanism.
  • Theory of Demand and Supply

    1. Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, Income and Cross elasticity
    2. Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach
    3. Demand Forecasting
    4. Meaning and determinants of supply, Law of supply and Elasticity of supply.
  • Theory of Production and Cost

    1. Meaning and Factors of production
    2. Laws of Production – The Law of Variable Proportions and Laws of Returns to Scale, Producer’s equilibrium
    3. Concepts of Costs – Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
  • Price Determination in Different Markets

    1. Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
    2. Price determination in these markets.
  • Business Cycles

    1. Meaning
    2. Phases
    3. Features
    4. Causes behind these Cycles.

PART-II Business and Commercial Knowledge Syllabus(40 Marks)

Objective

To develop an understanding of common business and commercial concepts and to keep abreast with developments in the business and commercial world.

Contents

  • Business and Commercial Knowledge – An Introduction

    Nature of Busines, Profession and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.

  • 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, Socio – cultural, Technological, Global Environment.

  • Business Organizations

    Overview of selected Indian and Global Companies.

  • Government Policies for Business Growth

    Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.

  • Organizations Facilitating Business

    1. Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI
    2. Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD
  • Common Business Terminologies

    1. Finance and Stock & Commodity Markets Terminology
    2. Marketing Terminology
    3. Banking Terminology
    4. Other Business Terminology

NOTE 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 the commercial world.

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