CA Foundation Syllabus 2021 for Dec Session - Subject Wise New Syllabus

Chapters

Topics

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 and 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 Payment Account

• Income

• Expenditure Account

• 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.

Section A: Business Law

Chapters

Topics

1. The Indian Contract Act, 1872

• An overview of Sections 1 to 75 covering the general nature

of contract, consideration

• 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

• Introduction- covering nature and scope

• Essential features, characteristics of LLP

• Incorporation and differences with other forms of organizations

5. The Companies Act, 2013

• Essential features of the company

• corporate veil theory

• Classes of companies

• types of share capital

• Incorporation of the company

• Memorandum of Association

• Articles of Association

• Doctrine of Indoor Management

SECTION B: Business Correspondence and Reporting

1. Communication

• Types

• Directions

• Network

• Process

• Problems

• Barriers

• Types of Communication

• Interpersonal Skills

• Listening Skill

• Emotional Intelligence

• Sample Questions with Answers

• Exercises.

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

(i) Sentence: Definition

(ii)Types of sentences as per connotations

• Assertive sentences

• Interrogative sentences

• Imperative sentences

• Exclamatory sentences

• Optative sentences

(iii) 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

(iv) Types of sentences

• Simple sentence

• Compound sentence

• Complex sentence

• Compound-complex sentence

(v) 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

vi) 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

vii) Verbs Voice Active or passive

(viii) 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

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)

-Sub-heading

-Indentation

- Points

-Use of abbreviations

-Summary

-Content

-Expression

• Steps to Comprehend and summarize a 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

a) Title

b) By- Writer’s Name

c) Body

- Introduction

- Main Idea-Support

- Conclusion

d)Sample Articles

e)Exercises

9. Report Writing

• What is a Report?

• Essential elements of Report Writing

• Kinds of Reports

a) Reporting for a Meeting/Assembly

b) Reporting for a Newspaper

c) Reporting for a Magazine

• Detailed Format for 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

10. Writing Formal Letters

• Types of Letters

a) Circulars

b) Complaints

c) Memos

d) Promotional Content

e) Sales

f) Recovery/Remittances

• Detailed format for (i) above

a) Date

b) Salutation

c) Subject

d) Body of the letter

- First paragraph

- Second paragraph

e) Complimentary Closure

• Points to Remember

• Sample Letters

• Exercises

11. Writing Formal Mails

• How to Write a Formal Mail?

• Writing Effective Emails

• 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

• Tips and Conventions of Mails

• Sample Mails

• Exercises

12. Resume Writing

• 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

• Signature

• Resume Writing Tips and Conventions

• Sample Resumes

• Exercises

13. Meetings

• Notice

• Agenda

• Drafting minutes

• Action Taken Report

Section A: Business Mathematics

Chapters

Topics

1. 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.

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.

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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:

a) Nominal Rate of Return

b) Effective Rate of Return

c) 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

• Sum of n terms of special series

7. Sets, Relations and Functions

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8. Basic applications of Differential and Integral calculus

(Excluding the trigonometric

applications)

• Applications of Marginal Cost and Marginal Revenue etc.

Section B: Logical Reasoning

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

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2. Direction Tests

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3. Seating Arrangements

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4. Blood Relations

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5. Syllogism

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Section 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 the 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.

Section A: Business Economics

Chapters

Topics

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 Oligopoly

• Price determination in these markets.

5. Business Cycles

• Meaning

• Phases

• Features

• Causes behind these Cycles

Section B: 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 a 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

Duration of exam

3 hours

Level of exam

National level

Frequency of exam

Twice a year

Number of papers

4

Medium of exam

English/Hindi except for Section (b) of paper 2 (English only)

CA foundation marking scheme

Paper 1 and 2- No negative marking

Paper 3 and 4: 1/4th mark will be deducted

Type of question

Paper 1 and 2- Subjective

Paper 3 and 4- Objective

Total marks

400 in 4 papers