CA Foundation Syllabus 2024 (New): ICAI New Scheme Syllabus and Subjects

Paper 1

Accounting

100 Marks

Subjective

Paper 2

Business Laws

100 Marks

Subjective

Paper 3

Quantitative Aptitude:

Part A: Business Mathematics

Part B: Logical Reasoning

Part C: Statistics

100 Marks

Part A: 40 Marks

Part B: 20 Marks

Part C: 40 Marks

Objective

Paper 4

Business Economics

100 Marks

Objective

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.

Topics

Sub Topics

Theoretical Framework

1. Meaning and Scope of Accounting.

2. Accounting concepts, principles and conventions.

3. Capital and revenue expenditure, capital and revenue receipts,contingent assets and contingent liabilities.

4. Accounting Policies.

5. Accounting as a measurement discipline – valuation principles, accounting estimates. Accounting Standards-concepts and objectives.

Accounting Process

1. Recording accounting transactions: principles of double entrybook-keeping, books of original entry-journal,subsidiary books,cash book, ledger-format,posting from journals and subsidiary books,balancing accounts.

2. Preparation Of Trial Balance.

3. Rectification Of Errors

Bank Reconciliation Statement

Introduction, reasons and preparation of bank reconciliation statement

Inventories

Meaning, basis and technique of inventory valuation, cost of inventory, net realisable value and record system

Depreciation and Amortisation

Tangible and intangible assets- meaning & difference, concepts,methods of computation and accounting treatment of depreciation/amortisation,change in depreciation method

Bills of Exchange and Promissory Notes

Meaning of bills of exchange and promissory notes and their accounting treatment; accommodation bills.

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

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

Accounts from Incomplete Records (excluding preparation of accounts based on ratios).

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Partnership And LLP Accounts

1. Final accounts of partnership firms and LLP.

2. Admission, retirement and death of a partner including treatment of goodwill.

3. Dissolution of partnership firms and LLPs including piecemeal distribution of assets

Company Accounts

1. Definition Of Shares And Debentures.

2. Issue Shares And Debentures,forfeiture of shares,reissue of forfeited shares.

3. Redemption of preference shares and debentures(excluding purchase and redemption of own debentures sinking fund method).

4. Accounting For Bonus Issue And Right Issue.

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 toacquiretheabilitytoaddress basic application-oriented issues

Topics

Sub Topics

Indian Regulatory Framework

Major Regulatory Bodies such as the Ministry of Finance, Ministry of Corporate Affairs, SEBI, RBI, IBBI, Ministry of Law and Justice, etc.

The Indian Contract Act, 1872

General Nature Of Contract, Consideration, Other essential elements of a valid contract,Performance Contract,Breach Of Contract, Contingent and Quasi Contract, Contract of Indemnity and Guarantee, Contract of Bailment and Pledge, Contract of Agency

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, 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 organisations

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

The Negotiable Instruments Act, 1881

Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, Different provisions relating to Negotiation, Presentment of Instruments, Rules of Compensation

Objective:

1. To develop an understanding of the basic mathematical and statistical tools and apply the same in business, finance and economic situations.

2. To Develop logical reasoning skills.

Topics

Sub Topics

Part A: Business Mathematics

Ratio and proportion, Indices and Logarithms

Ratio and proportion and Time and work-related problems, Laws of Indices, Exponents and Logarithms and AntiLogarithms

Equations

Linear Equations Upto Three Variables, Quadratic and Cubic equations in one variable. Applications in Business Related Problems.

Linear Inequalities

Linear Inequalities in one and two variables and the solution space

Mathematics of Finance

1. ◦ Simple Interest

2. ◦ Compound Interest

3. ◦ Nominal and Effective Rate of Interest

4. ◦ Present Value

5. ◦ Net Present Value

6. ◦ Future Value

7. ◦ Perpetuity

8. ◦ Annuities

9. ◦ SinkingFunds

10. ◦ Calculating EMI

11. Calculations of Returns:Nominal and Effective rate of Return

12. Compound Annual Growth Rate(CAGR)

Permutations and Combinations

Basic concepts of Permutations and combinations: Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions, Combinations With standard results

Sequence and Series

Introduction Sequences, Series, Arithmetic and Geometric progression,RelationshipbetweenAMandGMandSumofntermsofspecialseriesand BusinessApplications

Sets, Relations, and Functions. Basics of Limits and Continuity Functions

Basic applications of Differential and Integral calculus in Business and Economics (Excluding the trigonometric applications)

Part B: Logical Reasoning

Number series coding and Decoding and odd man out, Direction Tests, Seating Arrangements, Blood Relations

Part C: Statistics

Statistical Representation of Data

Diagrammatic representation of data, Frequency Distribution, Graphical representation of Frequency Distribution–Histogram, Frequency Polygon, Ogive, Pie-chart

Sampling

Basic principles of sampling theory, comparison between sample survey and complete enumeration, some important terms associated sampling type of sampling,sampling and non-sampling errors.

Measures of Central tendency and Dispersion

Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Coefficient of Variation, Coefficient of Quartile Deviation

Probability

Independent and dependent events;mutually exclusive events.Total and Compound Probability and Bayes Theorem

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

Correlation and Regression

Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations,Regression coefficients

Index Numbers

Uses of Index Numbers, Problems involved in construction Index Numbers,Methods of construction of Index Numbers.BSE SENSEX NSE

Objective: To develop an understanding of the concepts and theories of Economics and to acquire the ability for addressing application-oriented issues

Topics

Sub Topics

Introduction to Business Economics

Meaning and scope of Business Economics.

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 –Indifference Curve approach.

3. Meaning and Determinants of Supply, Law of Supply and Elasticity of Supply, Market Equilibrium and Social Efficiency

Theory of Production and Cost

1. Meaning and Factors of Production, Short Run and Long Run.

2. Law 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 andVariable Costs

Price Determination in Different Markets

1. Market Structures: Perfect Competition, Monopoly and Monopolistic Competition.Using Game Theory to study Oligopoly.

2. Price Determination in these Markets.

3. Price- Output Determination under different Market Forms

Determination of National Income

1. Macro Economic Aggregates and Measurement of National Income

2. Determination of National Income: Keynes’ Two Sector Basic Model,Three Sectors and Four Sectors Models

Business Cycles

Meaning, Phases, Features, Causes behind these Cycles

Public Finance

1. Fiscal functions:AnOverview, Centre and StateFinance.

2. MarketFailure/Government Intervention To Correct Market failure.

3. Process of budget making: Sources of Revenue, Expenditure Management, and management of Public Debt.

4. FiscalPolicy

Money Market

1. Concept of Money Demand

2. Important theories of Demand for Money

3. Concept of Money Supply, Cryptocurrency Another New Terminology

4. Monetary Policy

International Trade

1. Theories of International Trade including theories of intra-industry trade Krugman.

2. TradePolicy–TheInstrumentsofTradePolicy.

3. TradeNegotiations.

4. ExchangeRatesanditseconomiceffects.

5. International Capital Movements: Foreign DirectInvestment

Indian Economy

1. Before 1950- Chanakya and Nand Vansh

2. OECDPaper (1950-1991),

3. Basic knowledge 1991 Onwards