CA Foundation Syllabus & Subjects 2023 - Paper Wise Syllabus, Important Topics, Pattern

Papers

Details

Paper-1:

Principles and Practice of Accounting

Paper-2:

Business Laws and Business Correspondence and Reportin3

Paper-3:

Business Mathematics, Logical Reasoning and Statistics

Paper-4:

Business Economics and Business and Commercial Knowledge

Objective: To develop an understanding of the basic concepts and principles of accounting and acquire the ability to apply the same in preparing financial statements and simple problem-solving.

Topics

Sub-Topics

Theoretical Framework

(i) Meaning and Scope of accounting

(ii) Accounting Concepts, Principles and Conventions

(iii) Accounting terminology - Glossary

(iv) Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities

(v) Accounting Policies

(vi) Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates

(vii) Accounting Standards - Concepts and Objectives

(viii) Indian Accounting Standards - Concepts and Objectives

Accounting Process

(i) Books of Accounts

(ii) Preparation of Trial Balance

(iii) Rectification of Errors

Bank Reconciliation Statement

Introduction, reasons, preparation of bank reconciliation statement

Inventories

Cost of inventory, Net realizable value, Basis and technique of inventory valuation and record keeping

Concept and Accounting of Depreciation

Concepts, Methods of computation and accounting treatment of depreciation, Change in depreciation methods

Accounting for Special Transactions

(i) Bills of exchange and promissory notes- Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills.

(ii) Sale of goods on approval or return basis- Meaning of goods sent on approval or return basis and accounting treatment.

(iii) Consignments- Meaning and Features of consignment business, Difference between sale and consignment, Accounting treatments for consignment transactions and events in the books of consignor and consignee.

(iv) Average due Date- Meaning, Calculation of average due date in various situations.

(v) Account Current- Meaning of Account Current, Methods of preparing Account Current

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

(i) Final Accounts of Partnership Firms

(ii) Admission, Retirement and Death of a Partner including Treatment of Goodwill

(iii) Introduction to LLPs and Distinction of LLPs from Partnership

Financial Statements of Not-for-Profit Organizations

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

(i) Definition of shares and debentures

(ii) Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares

(iii) Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.

Objective: To develop an understanding of significant provisions of select business laws and acquire the ability to address basic application-oriented issues.

Topics

The 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 a contract, breach of contract, Contingent and Quasi 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, 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

Objective: To acquire and develop good communication skills requisite for business correspondence and reporting.

Topics

Sub-Topics

Communication

(i) Types

(ii) Directions

(iii) Network

(iv) Process

(v) Problems

(vi) Barriers

(vii) Types of Communication - a) Interpersonal Skills b) Listening Skills c) Emotional Intelligence

(viii) Sample Questions with Answers

(ix) Exercises

Sentence Types (Direct-Indirect, Active -Passive Speech)

(i) Sentence: Definition

(ii) Classification of sentence based on connotation -

a) Assertive sentences b) Interrogative sentences c) Imperative sentences d) Exclamatory sentences e) Optative sentences

(iii) Sentence Structure - a) Subject and Predicate b) Verb (Auxiliary, Finite) c) Object (Direct, Indirect) d) Complement e) Adjunct or Adverbial f) Clause Structure g) Types of Clauses - Independent clauses - Dependent clauses - Relative or noun clauses

(iv) Types of sentences a) Simple sentence b) Compound sentence c) Complex sentence d) Compound-complex sentence

(v) Direct-Indirect Speech a) Introduction b) Procedure for converting Direct speech into Indirect speech - Rules for converting Direct speech into Indirect speech - Change in pronouns - Change in tenses - Change in modals - Changes for Imperative sentences - Changes for Exclamatory sentences - Changes for Interrogative sentences - Punctuation in Direct speech c) Rules for converting Indirect speech into Direct speech

(vi) Active Passive Voice: Introduction a) Usage: Active vs. passive voice b) Reasons for using Passive voice c) Changing Passive voice to Active voice d) Changing Active voice to Passive voice e) Suggestions for using Active and Passive voice

(vii) Verbs Voice Active or passive

(viii) Exercises

Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations and Idioms.

(i) Introduction

(ii) Significance of improving vocabulary

(iii) How to improve vocabulary

(iv) Root words

(v) Synonyms and Antonyms

(vi) Words formed by using Prefixes

(vii) Words formed by using Suffixes

(viii) Phrasal verbs

(ix) Collocations

(x) Idioms

(xi) Exercises

Comprehension Passages

(i) Introduction to Comprehension Passages

(ii) Points to ponder

(iii) Sample Passages with answers

(iv) Exercises

Note Making

(i) Introduction to Note Making

(ii) Significance of Note Making

(iii) Detailed Format Heading (Title) - a) Sub-heading b) Indentation c) Points d) Use of abbreviations e) Summary f) Content g) Expression

(iv) Steps to Comprehend and summarize a text

(v) Helpful Hints

(vi) Sample Passages with Notes

(vii) Exercises

Introduction to Basic Writing

(i) Introduction

(ii) Process of writing

(iii) Styles of Writing

(iv) Significance of writing skills for students

(v) Writing Conventions

(vi) Characteristics of good writing

(vii) Do’s and Don’ts of good writing

Précis Writing

(i) What is Précis writing?

(ii) Features of good Précis writing

(iii) How to write a Précis

(iv) Do’s and Don’ts of Précis writing

(v) Examples (Passages with Précis)

(vi) Exercises

Article Writing

(i) What is an Article?

(ii) Essential elements of Article Writing

(iii) Detailed Format - a) Title b) By- Writer’s Name c) Body - Introduction - Main Idea-Support - Conclusion d) Sample Articles e) Exercises

Report Writing

(i) What is a Report?

(ii) Essential elements of Report Writing

(iii) Kinds of Reports - a) Reporting for a Meeting/Assembly b) Reporting for a Newspaper c) Reporting for a Magazine

(iv) Detailed Format for (iii) above - a) Title b) By- Writer’s Name c) Place, Date d) Body - What - When - Where - Who - How, e) Tips and Conventions of Report Writing f) Sample Reports g) Exercises

Writing Formal Letters

(i) Types of Letters - a) Circulars b) Complaints c) Memos d) Promotional Content e) Sales f) Recovery/Remittances

(ii) Detailed format for (i) above a) Date b) Salutation c) Subject d) Body of the Letter - First paragraph - Second paragraph e) Complimentary Closure

(iii) Points to Remember

(iv) Sample Letters

(v) Exercises

Writing Formal Mails

(i) How to Write a Formal Mail?

(ii) Writing Effective Mails

(iii) Essential elements of Mails - a) Subject line b) Formal Greetings c) Target Audience(Reader) d) Clarity and Conciseness e) Formal Closing f) Proofread g) Feedback

(iv) Tips and Conventions of Mails

(v) Sample Mails

(vi) Exercises

Resume Writing

(i) Essential Elements of Resume - a) Name and contact details b) Objective Summary c) Academic Qualifications and Achievements d) Co-curricular Achievements e) Training Programs attended/completed f) Strengths g) Interests/Hobbies h) Declaration i) Signature

(ii) Resume Writing Tips and Conventions

(iii) Sample Resumes

(iv) Exercises

Meetings

(i) Notice

(ii) Agenda

(iii) Drafting minutes

(iv) Action Taken Report

Objective: (a) To develop an understanding of the basic mathematical and statistical tools and their application in Business, Finance and Economics. (b) To develop logical reasoning skills and apply the same in simple problem-solving.

Topics

Sub-Topics

Ratio and Proportion, Indices and Logarithms

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

Equations

Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable

Linear Inequalities with Objective Functions and Optimization w.r.t. objective function.

Time value of Money

(i) Simple Interest

(ii) Compound interest

(iii) Depreciation

(iv) Effective Rate of Interest

(v) Present Value

(vi) Net Present Value

(vii) Future Value

(viii) Perpetuity

(ix) Annuities

(x) Sinking Funds

(xi) Valuation of Bonds

(xii) Calculating of EMI

(xiii) Calculations of Returns:

• a) Nominal Rate of Return

• b) Effective Rate of Return

• c) 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, 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.,

Topics

1. Number Series, Coding and Decoding and odd man out.

2. Direction Tests

3. Seating Arrangements

4. Blood Relations

Topics

Sub-Topics

Statistical description 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

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 Mathematical Expectation.

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

Uses of Index Numbers, Problems involved in the construction of Index Numbers, Methods of construction of Index Numbers

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

Topics

Sub-Topics

Introduction to Business Economics

(i) Meaning and scope of Business Economics

(ii) Basic Problems of an Economy and Role of Price Mechanism.

Theory of Demand and Supply

(i) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity

(ii) Theory of consumer’s behaviour – Marshallian approach and Indifference curve approach

(iii) Meaning and determinants of supply, Law of supply and Elasticity of supply.

(iv) Demand Forecasting

Theory of Production and Cost

(i) Meaning and Factors of production

(ii) Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

(iii) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.

Price Determination in Different Markets

(i) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

(ii) Price determination in these markets

Business Cycles

(i) Meaning

(ii) Phases

(iii) Features.

(iv) Causes behind these Cycles.

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

Topics

Sub-Topics

Business and Commercial Knowledge – An Introduction

Nature of Business, 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 Business

(i) Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI (ii) Indian Development Banks – NABARD

Common Business Terminologies

(i) Finance and Stock & Commodity Markets Terminology. (ii) Marketing Terminology. (iii) Banking Terminology. (iv) Other Business Terminology

Duration of the question papers

• Paper 1 and 2 will be of 3 hours

• Paper 3 and 4 will be of 2 hours

Question Type

• Paper 1 and 2 - Subjective

• Paper 3 and 4 - Objective

Marks

Each paper will be of 100 marks.

Total marks

400

Marking scheme

For subjective (Paper 1 and 2) - NO negative marking
For objective papers (Paper 3 and 4) - ¼ mark will be deducted for every wrong answer

Medium of exam

English/Hindi except for Paper 2 (section b which will be in English only)