CA Foundation Syllabus 2020

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, Accounting Estimates
• Accounting Standards – Concepts and Objectives
• Indian Accounting Standards – Concepts and Objectives

Accounting Process

• Books of Accounts
• Preparation of Trial Balance
• 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
• record-keeping

Concept and Accounting of Depreciation

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

Accounting for Special Transactions

• Bills of exchange and promissory notes
• Sale of goods on approval or return basis
• Consignments
• Average due Date
• 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

• Final Accounts of Partnership Firms
• Admission, Retirement and Death of a Partner including Treatment of Goodwill
• 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

• Definition of shares and debentures
• Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
• Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013

The Indian Contract Act, 1872

• An overview of Sections 1 to 75
• Other essential elements of a valid contract
• Performance of 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

• 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

Communication

• Types
• Directions
• Network
• Process
• Problems
• Barriers
• Types of Communication- Interpersonal Skills, Listening Skills and Emotional Intelligence
• Sample Questions with Answers
• Exercises

• Sentence: Definition
• Classification of sentence based on connotation
• Assertive sentences
• Interrogative sentences
• Imperative sentences
• Imperative sentences
• Optative sentences

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

• Sentence Structure
• Subject and Predicate
• Verb (Auxiliary, Finite)
• Object (Direct, Indirect)
• Complement
• Adjunct or Adverbial
• Clause Structure
• Types of Clauses- Independent clauses, Dependent clauses, Relative or noun clauses
• Types of sentences
• Simple sentence, Compound sentence, Complex sentence and Compound-complex sentence
• Direct-Indirect Speech

- Introduction

- 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)

- Rules for converting Indirect speech into Direct speech

• Active Passive Voice: Introduction
• Usage : Active vs. passive voice
• Reasons for using Passive voice
• Changing Passive voice to Active voice
• Changing Active voice to Passive voice
• Suggestions for using Active and Passive voice
• Verbs Voice Active or passive
• Exercises

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

• Significance of improving vocabulary
• How to improve vocabulary
• Root words
• Synonyms and Antonyms
• Words formed by using Prefixes
• Words formed by using Suffixes
• Phrasal verbs
• Collocations
• Idioms
• Exercises

4. Comprehension Passages

• Introduction to Comprehension Passages
• Points to ponder
• Sample Passages with answers
• Exercises

5. Note Making

• Introduction to Note Making
• Significance of Note Making
• Detailed Format Heading(Title)
• Subheading
• Indentation
• Points
• Use of abbreviations
• Summary
• Content
• Expression
• Steps to Comprehend and summarize text
• Helpful Hints
• Sample Passages with Notes
• Exercises

6. Introduction to Basic Writing

• Introduction
• Process of writing
• Styles of Writing
• Significance of writing skills for students
• Writing Conventions
• Characteristics of good writing
• Do’s and Don’ts of good writing

7. Précis Writing

• What is Précis writing?
• Features of good Précis writing
• How to write a Précis
• Do’s and Don’ts of Précis writing
• Examples (Passages with Précis)
• Exercises

8. Article Writing

• What is an Article?
• Essential elements of Article Writing
• Detailed Format
• Title
• By- Writer’s Name
• Body (Introduction, Main Idea, Support, Conclusion)
• Sample Articles
• Exercises

9. Report Writing

• What is a Report?
• Essential elements of Report Writing
• Kinds of Reports
• Reporting for a Meeting/Assembly
• Reporting for a Newspaper
• Reporting for a Magazine
• Detailed Format for (iii) above
• Title
• By- Writer’s Name
• Place, Date
• Body (What, When, Where, Who, How)
• Tips and Conventions of Report Writing
• Sample Reports
• Exercises

10. Writing Formal Letters

• Types of Letters
• Circulars
• Complaints
• Memos
• Promotional Content
• Sales
• Recovery/Remittances
• Detailed format for (i) above
• Date
• Salutation
• Subject
• Body of the letter (First paragraph, Second paragraph)
• Complimentary Closure
• Points to Remember
• Sample Letters
• Exercises

11. Writing Formal Mails

• How to Write a Formal Mail?
• Writing Effective Mails
• Essential elements of Mails
• Subject line
• Formal Greetings
• Target Audience(Reader)
• Clarity and Conciseness
• Formal Closing
• Proof read
• Feedback
• Tips and Conventions of Mails
• Sample Mails
• Exercises

12. Resume Writing

• Essential Elements of Resume
• Name and contact details
• Objective Summary
• Academic Qualifications and Achievements
• Co-curricular Achievements
• Training Programs attended/completed
• Strengths
• Interests/Hobbies
• Declaration
• Signature
• Resume Writing Tips and Conventions
• Sample Resumes
• Exercises

13. Meetings

• Notice
• Agenda
• Drafting minutes
• Action Taken Report

Part A- Business Mathematics

Ratio and Proportion, Indices and Logarithms

• Business Applications related to Ration and Proportion
• Laws of Indices
• Exponents and Logarithms and Anti Logarithms

Equations and Matrices

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

• Simple Interest
• Compound interest
• Depreciation
• Effective Rate of Interest
• Present Value
• Net Present Value
• Future Value
• Perpetuity
• Annuities
• Sinking Funds
• Valuation of Bonds
• Calculating of EMI
• Calculations of Returns
• Nominal Rate of Return
• Effective Rate of Return
• 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

Sets, Relations and Functions

Basic applications of Differential and Integral calculus

• (Excluding the trigonometric applications)

• Applications of Marginal Cost and Marginal Revenue etc.

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

Part C- Statistics

1. 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

2. 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

3. Probability

• Probability
• Independent and dependent events
• Mutually exclusive events
• Total and Compound Probability and Mathematical Expectation

4. Theoretical Distributions

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

5. 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

6. 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 - Components of Time Series and Calculation of Trend by Moving Average Method.