CA Foundation Syllabus 2023- Subjects, Marks and Weightage

CA Foundation Syllabus 2023

We are providing you with a complete ICAI CA Foundation syllabus in May 2023 under separate heads for ease of your understanding. This CA Foundation new syllabus is applicable for May 2023 Exams and onwards. Below we have also provided you with the syllabus of the CA Foundation 2023 PDF link.

Paper 1:Principles and Practices of Accounting

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

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

Check CA Foundation accounts Syllabus 2023 of Principle and practice of account paper. 

1. Theoretical Framework
   • Meaning and Scope of accounting
   • Accounting Concepts, Principles, and Conventions.
   • Accounting Terminology- Glossary
   • Capital and Revenue Expenditure, Capital and Revenue Receipts, contingent assets, and contingent liabilities.
   • Accounting Policies
   • Accounting as a Measurement Discipline- Valuation Principles and Accounting Estimates.
   • Accounting Standards- Concepts and objectives.
   • 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.

• Concept and accounting of Depreciation

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. Average due date: Meaning and its calculation in various situations.
5. 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)

Also, Check the Complete CA Course Guide

Also, CMA Salary in India

Paper 2: Business Laws and Business Correspondence and Reporting

This is the second paper is of CA Foundation. The  Paper is divided into 2 parts of Business Laws and Business Correspondence. Here the students will be taught about Business law company accounts and more.

Check the CA Foundation Business Laws and Business Correspondence and Reporting Syllabus 2023.

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.

Check CA Foundation Business Law Syllabus 2023 Examination.

Contents

Indian Contract Act, 1872 –  An overview of Sections 1 to 75 covering the general nature of the 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 the company, corporate veil theory, Classes of companies, types of share capital, Incorporation of company, Memorandum of Association, Articles of Association, Doctrine of Indoor Management

Also, Know How to Become CA in India

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

Check CA Foundation Business Correspondence and Reporting Syllabus 2023.

This subject is newly introduced in the 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. Sample question with answers
  9. Exercise

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. Steps to Comprehend and summarize the text
  5. Helpful Hints
  6. Sample Passages with Notes
  7. 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
• Precis Writing
  1. What is Precis writing?
  2. Features of good Precis writing
  3. How to write a Precis
  4. Do’s and Don’ts of Precis writing
  5. Examples(Passages with Precis)
  6. Exercises with Answers
• Article Writing

1. What is an Article?
2. Essential elements of Article Writing
3. Detailed Format

-Title

1. By- Writer’s Name
2. Body
   1. Introduction
   2. Main Idea-Support
   3. Conclusion
3. Sample Articles
4. 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. Proofread
     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.

Also Read: Check the Latest Chartered Fee structure in India.

Paper 3:Business Mathematics, Logical Reasoning, and Statistics

Check CA Foundation Business Mathematics, Logical reasoning, and statistics syllabus 2023.

This is the third Subject of CA Foundation students will be taught about basic mathematics, statistical and their application in business, finance, and economics.

Objective

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

Contents

Part A: Business Mathematics Syllabus (40 Marks)

Check CA Foundation Business Mathematics Syllabus 2023 Examination.

• 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. Future Value
7. Perpetuity
8. Annuities
9. Sinking Funds
10. Valuation of Bonds
11. Calculations of Returns1. 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 a special series

• Sets, Relations, and Functions

They are the set operations that help to discover the relationship between the elements of two or more distinct sets or between the elements of the same set.

• 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)

Check CA Foundation Logical Reasoning Syllabus 2023 Examination.

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

Part C: Statistics Syllabus (40 Marks)

Check CA Foundation Statistics Syllabus 2023.

• The 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

Check CA Foundation Business Economics and Business and Commercial Knowledge syllabus 2023.

This is the 4th and last subject of the CA Foundation. These subjects will help the student in making their concept of Business Economics Strong. You can apply such concepts and theories in your simple problem-solving.

Part I – Business Economics Syllabus (60 Marks)

Check CA Foundation Business Economics syllabus 2023.

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 the 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 behavior – 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)

Check CA Foundation Business and commercial knowledge syllabus 2023.

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 a conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
• Organizations Facilitating Busines

IFCI, SIDBI, Exim Banks removed as per the update of the CA  foundation 2023 syllabus.

1. Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI
2. Indian Development Banks – NABARD

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

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CA Foundation Exam Books

Here are some most preferred CA foundation books by CA foundation toppers that will cover your whole CA foundation syllabus and help you for better learning of CA basics.

Principles And Practice Of Accounting

• Fundamentals of Accounting for CA – CPT  by P.C Tulsian and Bharat Tulsian
• CPT Grewal’s Accountancy by M.P Gupta & B.M Aggarwal
• Fundamentals of Accounting by D.G Sharma
• Padhuka Basics of Accounting for CA CPT by G. Sekar & b Saravana Prasath
• General Economics by S.K. Agarwal

Quantitative Aptitude

• Quantitative Aptitude by Dr. T. Padma and K.C.P Rao
• Padhuka’s practical Guide On Quantitative Aptitude For CA CPT by G.Sekar and Saravana Prasath
• Quantitative Aptitude for CPT: mathematics and Statistics by Tulsian P. C. and  Jhujhunwala Bharat
• Quantitative Aptitude Mathematics With Short Tricks By CA Rajesh Jogani

Mercantile Law

• Mercantile Laws for CA CPT by P C Tulsian
• S Chand Mercantile Laws for CA CPT by P P S GOGNA
• Mercantile Law by M.C.Kuchhal and Vivek Kucchal
• Padhuka’s MCQ Bank by G Sekar and B Sarvana Prasath

Other Reference Books

• Question Bank with Model Test Papers for CA – Common Proficiency Test (CPT) – Accounting, Mercantile Laws, General Economics & Quantitative Aptitude by R C Bhatt
• Quantitative Aptitude – P. N. Arora
• General Economics by PM Salwan & Pranjal B Deshpande by Taxmann

Also Check about: CMA Foundation Course

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CA Foundation Paper Pattern 2023

ICAI conducts the CA Foundation Examination. CA Foundation Syllabus is divided into 4 subjects. CA Foundation paper pattern consists of 4 papers conducted by the ICAI of 100 marks each. The  CA Foundation Paper pattern is objective and subjective type. There is also a negative marking for subjective-type questions. ICAI Conducts the CA Foundation Examination in both English and Hindi Medium.

Appearing students have to score 40% mark in each subject along with the 50% aggregate score to get qualified for the CA Intermediate/IPCC examination.

Also Read: Download the latest CA Foundation Scanner May 2023 Examination. 

Below is the Latest ICAI CA Foundation Paper pattern 2023 examination.

After the CA CPT examination, there is an enormous change of subject done by the ICAI for the CA Foundation Examination.

The first paper in CA Foundation is Principles and Practices of Accounting ( CA Foundation Accounts) which is replacing Fundamentals of Accounting, the 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 the same as earlier.

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

Also Read: Download latest CA Foundation Admit Card 2023.

Follow the CA Foundation Preparation Strategy to score ranking marks in the examination.

CA Foundation Subjects 2023

Below are all the subjects of CA Foundation Examination. Students should know all the CA Foundation subjects at the time of filling the CA Foundation registration form.

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)

Also Read: How to Clear CA Foundation Like Toppers.

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ICAI CA Foundation Marking Scheme 2023

Below are the CA Foundation subjects with marks weightage. Some of the CA Foundation subjects are divided into two parts it is necessary that the student must know about all CA Foundation subjects with marks weightage.

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Important Points to Remember for CA Foundation Examination

The ICAI is responsible for conducting the CA Foundation Examination. There are a total of 4 subjects in the CA Foundation. The Examination is conducted twice a year in the month of May and  Dec. The Next attempt will be the May 2023 examination. The Paper pattern is subjective and objective. There is a negative marking in the CA Foundation objective section.

CA Foundation is the first milestone for the class 12th students. Students should know each and every detail about the CA Foundation examination. After successful registration of the CA Foundation students can check the CA Foundation Syllabus and Subject. Students must know the proper CA examination pattern along with the marking scheme before appearing in the examination.

Since CA Foundation is the first stage it is advisable that you must choose the best CA Foundation Coaching institute. For those who are facing difficulty and do not find a good CA Coaching institute in their locality, they can choose the best CA Foundation Online Classes or CA Foundation Pendrive Classes which will help them to score well in the examination.

It is advisable that the student must complete their CA Foundation syllabus and CA Foundation study material within the time period before the examination so that they can give time to CA Foundation’s previous year’s question paper and CA Foundation Mock Test Paper.

Also Read Sure Success Tips to Clear CA Foundation Without Coaching.

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ICAI CA Foundation Preparation Tips

The CA foundation preparation tips for the upcoming exam May 2023 are as follows:

• Prepare a Time-Table: The first step before starting studies is to prepare a timetable or set a CA Foundation study plan. It should be effective but more importantly, it should be feasible. An effective CA Foundation timetable according to the CA Foundation Date sheet/time table 2023 is helpful in keeping a check on the progress and speed.
•  Make Short notes: Handwritten notes help in learning. These short notes can be used for quick revision during exams.
• Practice maths daily: Regular maths practice is recommended for better calculation speed to perform well in the exams.
•  Focus on Logical Reasoning and Statistics: Non-Commerce Maths students should focus on these subjects if they are not able to score well in maths.
• Mock Test: Regular mock tests are essential for mistake analysis and help in preparing better for the main examination. Mock tests deliver an idea on how to approach final exams.
• Study regularly: Don’t wait till the end to prepare. Study regularly to increase your speed and complete the course on time. Students can also join Chartered Accountant Online Classes which will also help them to score well in the examination.

Also Read: Check the Chartered Accountant Salary in India. 

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Frequently Asked Question

Question 1: What are the CA Foundation subjects. How many are there?

Answer: CA Foundation comprises of 4 subjects-

• Principles and Practice of Accounting
• Business Laws, Business Correspondence & Recording
• Business Mathematics, Logical Reasoning & Statistics
• Business Economics, Business & Commercial Knowledge.

Question 2: What are the passing marks for the new CA Foundation?

Answer: To pass, candidates need to score 40% in each subject and 50% in aggregate of all subjects.

Question 3: Does CA Foundation have negative marking?

Answer: There is a negative marking of 0.25mark for each incorrect response in objective questions (paper 3 and 4)

Question 4: Is the calculator allowed in the CA Foundation exam?

Answer: Yes. Candidates can use calculators in the exam hall except for scientific calculators and the one with more than 6 functions, 12 digits, and two memories only.

Question 5: How many hours of study is required for the CA Foundation Examination?

Answer- Student should divide their subjective and objective study hours separately and should give at least 8  hours of study period daily.

Question 6: How many attempts are allowed in the CA foundation?

Answer: Your CA foundation registration is valid until 3 years. So a candidate can give 6 attempts before he has to register again.

• 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.