CA Foundation Syllabus 2020

CA Foundation Syllabus 2020- The ICAI’s Board of Studies releases syllabus for CA Foundation and the corresponding amendments to the already prevailing ones. The CA Foundation syllabus contains topics covered under all four CA Foundation subjects. Candidates aspiring to appear for the upcoming May 2020 session should take note of topics covered as per CA Foundation syllabus pdf download and then kickstart with their preparation with an aim to surely crack their May 2020 attempt. The Institute of Chartered Accountants of India has provided the CA Foundation syllabus 2020 on the official website in downloadable form so that its easy for candidates to prepare for exams. The article below contains all the topics and sub-topics to be studied by candidates as per CA Foundation syllabus May 2020.

CA Foundation Syllabus May 2020

The authorities have not brought in any changes to the CA Foundation syllabus 2020 till date. Thus, for now, the already prevailing CA Foundation syllabus May 2020 has to be prepared by the candidates for the upcoming May 2020 session.

CA Foundation Subjects

There are a total of 4 subjects in CA Foundation 2020 which the candidates have to appear for in the upcoming May 2020 session. The CA Foundation subjects are as follows:

1. PRINCIPLES AND PRACTICE OF ACCOUNTING

2. BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING

• BUSINESS LAWS

• BUSINESS CORRESPONDENCE AND REPORTING

3. BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS

• BUSINESS MATHEMATICS

• LOGICAL REASONING

• STATISTICS

4. PAPER – 4 : BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE

• BUSINESS ECONOMICS

• BUSINESS AND COMMERCIAL KNOWLEDGE

CA Foundation Syllabus

PAPER 1- PRINCIPLES AND PRACTICE OF ACCOUNTING

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, Accounting Estimates

• Accounting Standards – Concepts and Objectives

• Indian Accounting Standards – Concepts and Objectives

2. Accounting Process

• Books of Accounts

• Preparation of Trial Balance

• Rectification of Errors

3. Bank Reconciliation Statement

• Introduction, reasons, preparation of bank reconciliation statement

4. Inventories

• Cost of inventory

• Net realizable value

• Basis and technique of inventory valuation

• record keeping

5. Concept and Accounting of Depreciation

• Concepts

• Methods of computation and accounting treatment of depreciation

• Change in depreciation methods

6. Accounting for Special Transactions

• Bills of exchange and promissory notes

• Sale of goods on approval or return basis

• Consignments

• Average due Date

• Account Current

7. 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

8. 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

9. 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

10. 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

PAPER 2- BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING

Section A- Business Laws

1. 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

2. 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

3. The Indian Partnership Act, 1932

• General Nature of Partnership

• Rights and duties of partners

• Reconstitution of firms

• Registration and dissolution of a firm

4. The Limited Liability Partnership Act, 2008

• Nature and Scope

• Essential features

• Characteristics of LLP

• Incorporation and differences with other forms of organizations

5. 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

Part 1- Communication

1. Communication

• Types

• Directions

• Network

• Process

• Problems

• Barriers

• Types of Communication- Interpersonal Skills, Listening Skills and Emotional Intelligence

• Sample Questions with Answers

• Exercises

Part 2- Sentence Types and Word Power

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

• Sentence: Definition

• Classification of sentence based on connotation

• Assertive sentences

• Interrogative sentences

• Imperative sentences

• Imperative sentences

• Optative sentences

• 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

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

• Introduction

• 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

Part 3- Comprehension Passages and Note Making

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

Part 4- Developing Writing Skills

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

PAPER –3: BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS

Part A- Business Mathematics

1. Ratio and Proportion, Indices and Logarithms

• Business Applications related to Ration and Proportion

• Laws of Indices

• Exponents and Logarithms and Anti Logarithms

2. 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).

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

4. 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)

5. Permutations and Combinations

• Basic concepts of Permutations and Combinations

• Introduction

• The Factorial

• Permutations

• Results

• Circular Permutations

• Permutations with restrictions

• Combinations with standard results

6. Sequence and Series

• Introduction Sequences

• Series

• Arithmetic and Geometric progression

• Relationship between AM and GM and

• Sum of n terms of special series

7. Sets, Relations and Functions

8. Basic applications of Differential and Integral calculus

• (Excluding the trigonometric applications)

• Applications of Marginal Cost and Marginal Revenue etc.

Part B- Logical reasoning

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

2. Direction Tests

3. Seating Arrangements

4. Blood Relations

5. 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.

PAPER – 4 : BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE

Part 1- Business Economics

1. Introduction to Business Economics

• Meaning and scope of Business Economics

• Basic Problems of an Economy and Role of Price Mechanism

2. Theory of Demand and Supply

• Meaning and determinants of demand, Law of demand and Elasticity of demand- Price, income and cross elasticity

• Theory of consumer’s behaviour- Marshallian approach and Indifference curve approach

• Meaning and determinants of supply, Law of supply and Elasticity of supply

• Demand Forecasting

3. Theory of Production and Cost

• Meaning and Factors of production

• Laws of Production- The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium

• Concepts of Costs- Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs

4. Price Determination in Different Markets

• Various forms of markets- Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly

• Price determination in these markets.

5. Business Cycles

• Meaning

• Phases

• Features

• Causes behind these Cycles

Part 2- Business and Commercial knowledge

1. Business and Commercial Knowledge – An Introduction

• Nature of Business

• Profession and Employment

• Objectives of Business

• Economic and Non-Economic Activities

• Forms of Business Organizations

2. 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

3. Business Organizations

• Overview of selected Indian and Global Companies

4. Government Policies for Business Growth

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

5. Organizations Facilitating Business

• Indian Regulatory Bodies

• RBI

• SEBI

• CCI

• IRDAI

• Indian Development Banks

• IFCI

• SIDBI

• EXIM Bank

• NABARD

6. Common Business Terminologies

• Finance and Stock & Commodity Markets Terminology

• Marketing Terminology

• Banking Terminology

• Other Business Terminology

Commercial Updates

Students should always take note of this fact that the commercial world keeps progressing regardless of when the exams are being conducted for Chartered Accountancy. Thus, candidates should always refer the CA Foundation syllabus 2020 for understanding the concepts, and keep in touch with what is going on in the world around. This can be done with the help of some business magazines, channels, etc. so that the student remains aware of amendments brought in the commercial world.

CA Foundation Exam Pattern 2020

The authorities have released exam pattern for CA Foundation so that candidates can know the strategy to be inculcated for preparation for the upcoming exams. Two of the exams are subjective while the other two are objective exams. There will be a deduction of marks as well for candidates who mark incorrect response in the objective papers. The table below contains CA Foundation exam pattern to be referred by candidates.

CA Foundation Exam Pattern