CA Foundation Syllabus 2018 & Exam Pattern – Subjects in ICAI CA Foundation
Check out the CA Foundation Syllabus & Exam Pattern 2018. We’ve listed the subjects of ICAI’s CA Foundation Course.The Institute of Chartered Accountants of India (ICAI) has released the syllabus of CA Foundation for November 2018 and May 2019. The detailed syllabus and weight-age of each of the four papers of CA Foundation 2018 can be checked below. In 2017, ICAI has made changes in CPT course and renamed it as CA Foundation Course and also made changes CA Foundation Syllabus. Here you can also check the difference between old CPT syllabus and new CA Foundation Syllabus.
Also Read :
- Download CA Foundation Study Material 2018 & 2019
- CA Foundation Registration, Admission, Fee & Due Date
- CA Foundation Time Table November 2018 (Exam Dates)
Useful Content in this Article
Papers & Subjects in CA Foundation
Given below are the subjects and papers of the CA Foundation exam 2018
- Paper 1: Principles and Practice of Accounting
- Paper 2: Business Laws & Business Correspondence and Reporting
- Section A: Business Laws
- Section B: Business Correspondence and Reporting
- Paper 3: Business Mathematics and Logical Reasoning &Statistics
- Part I: Business Mathematics and Logical Reasoning
- Part II: Statistics
- Paper 4: Business Economics & Business and Commercial Knowledge
- Part I: Business Economics
- Part II: Business and Commercial Knowledge
CA Foundation Exam Pattern 2018
- Total papers: Four
- Total Marks: 400 Marks exam with each paper accounting for 100 Marks
- Four Papers (Type): Paper 1 & 2 will be subjective type papers and 3 & 4 will be objective papers.
- Language: Candidates can choose English or Hindi as the choice of language to appear in CA Foundation 2018 exam. However, Section B of paper 2 will compulsorily have to be given in English language.
- Negative Marking: The objective papers, i.e. Paper 3 & 4, will have a negative marking of one-fourth, such that for every wrong answer, 0.25 marks will be deducted.
- Passing Criteria: Candidates will have to score a minimum of 40 marks in each paper and 50% overall (200 marks) to pass the CA Foundation exam.
Paper 1: Principles and Practice of Accounting Syllabus & Weight-age
|Bank Reconciliation Statement|
|Concept and Accounting of Depreciation|
|III||Accounting for Special Transactions||15%-20%|
|IV||Final Accounts of Sole Proprietors||25%-30%|
|Financial Statements of Not-for-Profit Organisations|
|V||Introduction to Company Accounts||10%-15%|
|VI||Basic Accounting Ratios (Probability, Solvency, Liquidity and Turnover)||10%-15%|
Paper 2: Business Laws and Business Correspondence and Recording Syllabus
|Section A: Business Laws (60 Marks)|
|I||The Indian Contract Act, 1872||25%-30%|
|II||The Sale of Goods Act, 1930||20%-25%|
|III||The Indian Partnership Act, 1932||20%-25%|
|IV||The Limited Liability Partnership Act, 2008||5%-10%|
|V||The Companies Act, 2013||15%-20%|
|Section B: Business Correspondence and Recording (40 Marks)|
|II||Sentence Types and Vocabulary||20%-30%|
|Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes, Phrasal verbs, Collocations and Idioms.|
|III||Comprehension Passages and Note-Making||20%-30%|
|IV||Developing Writing Skills||35%-40%|
Paper 3: Business Mathematics, Logical Reasoning and Statistics Syllabus
|Part A- Business Mathematics (40 Marks)|
|Ratio and Proportion, Indices and Logarithms||20%-30%|
|Equations and Matrices|
|Linear Inequalities: Linear Inequalities in one variable and the solution space and|
|Time Value of Money||30%-40%|
|Permutations and Combinations||30%-50%|
|Sequence and Series|
|Sets, Relations and Functions|
|Basic applications of Differential and Integral calculus|
|Part B- Logical Reasoning (20 Marks)|
|Number series coding and Decoding and odd man out||60%-70%|
|Part C- Statistics (40 Marks)|
|Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution –Histogram, Frequency, Polygon, Ogive, Pie-chart||45%-50%|
|Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation,Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation|
|Probability: Independent and dependent events; mutually exclusive events.25% Total and Compound Probability; Bayes’ theorem; and Mathematical Expectation||25%-30%|
|Theoretical Distribution: 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||10%-15%|
|Index Numbers and Time series||10%-15%|
Paper 4: Business Economics and Business and Commercial Knowledge Syllabus
|Part 4A- Business Mathematics (60 Marks)|
|Introduction to Business Economics||15%-20%|
|Theory of Demand and Supply||35%-40%|
|Theory of Production and Cost|
|Price Determination in Different Markets||25%-30%|
|Part 4B- Business & Commercial Knowledge (40 Marks)|
|Introduction to Business||15%-18%|
|Government Policies for Business Growth||15%-18%|
|Organizations Facilitating Business||15%-18%|
|Common Business Terminologies||15%-18%|
CA Foundation Detailed Syllabus, Topics & Chapters
PAPER – 1 : PRINCIPLES AND PRACTICE OF ACCOUNTING
(One paper – Three hours – 100 Marks)
- 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.
(viii) 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.
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
- Bills of exchange and promissory notes
Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills.
- Sale of goods on approval or return basis
Meaning of goods sent on approval or return basis and accounting treatment.
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.
- Joint Ventures for non-corporate entities
Meaning and Features of joint venture transactions, Distinction between joint venture and partnership, Methods of maintaining joint venture accounts.
- Royalty accounts
Meaning of the term “Royalty” and Accounting Treatment thereof.
- Average due Date
Meaning, Calculation of average due date in various situations.
- 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
- 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.
- Basic Accounting Ratios (profitability, solvency, liquidity and turnover)
PAPER – 2 : BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING
(One paper – Three hours – 100 Marks)
SECTION A : BUSINESS LAWS (60 MARKS)
- 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.
- 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
Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from dates notified by the Institute.
SECTION B : BUSINESS CORRESPONDENCE AND REPORTING (MARKS 40)
Part – I: Communication
- Types of Communication
- Interpersonal Skills
- Listening Skills
- Emotional Intelligence
(viii) Sample Questions with Answers
Part – II : Sentence Types and Word Power
- Sentence Types (Direct-Indirect, Active -Passive Speech)
- Sentence: Definition
- Classification of sentence based on connotation
- Assertive sentences
- Interrogative sentences
- Imperative sentences
- Exclamatory sentences
- Optative sentences
- Sentence Structure
- Subject and Predicate
- Verb (Auxiliary, Finite)
- Object (Direct, Indirect)
- 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
- Compound-complex sentence
- Direct-Indirect Speech
- 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
- 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 (viii) Phrasal verbs
Part – III : Comprehension Passages and Note Making
- Comprehension Passages
- Introduction to Comprehension Passages
- Points to ponder
- Sample Passages with answers
- Note Making
- Introduction to Note Making
- Significance of Note Making
- Detailed Format Heading(Title)
- Use of abbreviations
- Steps to Comprehend and summarize text
- Helpful Hints
- Sample Passages with Notes
Part – IV : Developing Writing Skills
- Introduction to Basic Writing
- 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
- Precis Writing
- What is Precis writing?
- Features of good Precis writing
- How to write a Precis
- Do’s and Don’ts of Precis writing
- Examples (Passages with Precis)
- Article Writing
- What is an Article?
- Essential elements of Article Writing
- Detailed Format
- By- Writer’s Name
- Main Idea-Support
- Sample Articles
- 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
- By- Writer’s Name
- Place, Date
- Tips and Conventions of Report Writing
- Sample Reports
- Writing Formal Letters
- Types of Letters
- Promotional Content
- Detailed format for (i) above
- Body of the letter
- First paragraph
- Second paragraph
- Complimentary Closure
- Points to Remember
- Sample Letters
- 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
- Tips and Conventions of Mails
- Sample Mails
- Resume Writing
- Essential Elements of Resume
- Name and contact details
- Objective Summary
- Academic Qualifications and Achievements
- Co-curricular Achievements
- Training Programs attended/completed
- Resume Writing Tips and Conventions
- Sample Resumes
- Drafting minutes
- Action Taken Report
PAPER -3: BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS
(One paper – Three hours – 100 Marks)
Part – A. Business Mathematics (40 Marks)
- 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 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
- Effective Rate of Interest
- Present Value
- Net Present Value
- Future Value (viii) Perpetuity
- Sinking Funds
- Valuation of Bonds
- Calculating of EMI (xiii) 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
- Basic applications of Differential and Integral calculus (Excluding the trigonometric applications), Applications of Marginal Cost and Marginal Revenue etc.,
Part – B: Logical Reasoning (20 Marks)
- Number series, Coding and Decoding and odd man out.
- Direction Tests
- Seating Arrangements
- Blood Relations
Part – C: Statistics (40 Marks)
- 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.
- Measures of Central tendency and Dispersion
Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation.
Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.
- Theoretical Distributions
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 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
(One paper – Three hours – 100 Marks)
PART I : BUSINESS ECONOMICS (60 Marks)
- 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
- 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
- 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.
- Price Determination in Different Markets
- Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
- Price determination in these markets.
- Business Cycles
- Causes behind these Cycles.
PART – II : BUSINESS AND COMMERCIAL KNOWLEDGE (40 MARKS)
- Introduction to Business
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 leading Indian and Global Companies.
- Government Policies for Business Growth
Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
- Organizations facilitating Business
- Indian regulatory bodies – SEBI, RBI, IRDA, CCI
- Indian Development Banks – IFCI, SIDBI, EXIM Bank, NABARD
- Common Business Terminologies
- Finance Terminologies.
- Marketing Terminologies.
- Stock & Commodity Markets Terminologies.
- Banking Terminologies.
- Other Business Terminologies.
Note: Students are expected to read at least one financial newspaper and one business magazine on a regular basis. They may also watch a business channel to remain updated about the developments related to commercial world.
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