Looking for the updated CA Foundation Syllabus 2023? Get detailed information about the subjects and topics covered in the CA Foundation course. Stay prepared and stay ahead with the comprehensive syllabus provided by the Institute of Chartered Accountants of India (ICAI) for the CA Foundation exams.
Paper-I-Principles and practice of accounting : CA Foundation Syllabus 2023
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, 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
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
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
Paper-II-Business laws and business correspondence and reporting (business law) : CA Foundation Syllabus 2023
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
Paper-II-Business laws and business correspondence and reporting (business correspondence and reporting)
(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
Sentence types (direct-indirect, active-passive speech): (vi) Active passive voice-introduction: (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 and note making
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) subheading, (b) indentation, (c) points, (d) use of abbreviations, (e) summary, (f) content, (g) expression
Note making: (iv) Steps to comprehend and summarize text, (v) helpful hints, (vi) sample passages with notes, (vii) exercises
Developing writing skills
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
Precis writing: (i) What is precis writing?, (ii) features of good precis writing, (iii) how to write a precis, (iv) do’s and don’ts of precis writing, (v) examples (passages with precis), (vi) exercises
Article writing: (i) What is an article?, (ii) essential elements of article writing
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
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
Paper-III-Business mathematics, logical reasoning and statistics (business mathematics) : CA Foundation Syllabus 2023
Ratio and proportion, indices and logarithms
Ratio and proportion (business applications related to ratio and proportion) laws of indices, exponents and logarithms and antilogarithms
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)
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)
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
Basic applications of differential and integral calculus
Excluding the trigonometric applications, applications of marginal cost and marginal revenue, etc
Paper-III-Business mathematics, logical reasoning and statistics (logical reasoning)
Number series, coding and decoding and odd man out
Direction tests
Seating arrangements
Blood relations
Syllogism
Paper-III-Business mathematics, logical reasoning and statistics (statistics)
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, coefficient of variation, coefficient of quartile deviation
Probability
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-IV – Business economics and business and commercial knowledge (business economics) : CA Foundation Syllabus 2023
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 behavior: 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
Meaning
Phases
Features
Causes behind these cycles
Paper-IV-Business economics and business and commercial knowledge (business and commercial knowledge)
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 conducive business environment such as liberalization, privatization, foreign direct investment
Organizations facilitating business
Indian regulatory bodies: RBI, SEBI, CCI, IRDAI
Indian development banks: IFCI, SIDBI, EXIM bank, NABARD
Common Business Terminologies
Finance and stock and commodity markets terminology
Marketing terminology
Banking terminology
Other business terminology
Frequently Asked Questions (FAQs)
Q1. What is the CA Foundation Syllabus for 2023?
A: The CA Foundation Syllabus for 2023 includes four subjects: Paper 1 – Principles and Practice of Accounting, Paper 2 – Business Law and Business Correspondence and Reporting, Paper 3 – Business Mathematics and Logical Reasoning & Statistics, and Paper 4 – Business Economics and Business and Commercial Knowledge.
Q2. Are there any changes in the CA Foundation Syllabus for 2023?
A: The CA Foundation Syllabus for 2023 is based on the revised scheme introduced by the Institute of Chartered Accountants of India (ICAI). While the core subjects remain the same, there may be updates and revisions in the syllabus to ensure it is aligned with the latest industry trends and practices.
Q3. How can I obtain the CA Foundation Syllabus for 2023?
A: The CA Foundation Syllabus for 2023 can be obtained from the official website of the Institute of Chartered Accountants of India (ICAI). It is recommended to visit the ICAI website or refer to the official notification for the most up-to-date and accurate syllabus information.
Q4. Can I rely on previous years’ study material for the CA Foundation Syllabus 2023?
A: While previous years’ study material can provide a foundation of knowledge, it is advisable to refer to the updated syllabus and study materials provided by the ICAI for the CA Foundation Syllabus 2023. Changes and updates may have been made to the syllabus, and it is essential to stay up-to-date with the current curriculum to maximize your chances of success.
