CA Foundation Syllabus and Exam Pattern

CA Foundation Syllabus and Exam Pattern 2020 | Paper-Wise Weightage

CA Foundation Syllabus and Exam PatternCA Foundation Syllabus and Exam Pattern 2020: The Institute of Chartered Accountant of India published the CA Foundation Syllabus. You must follow the latest official syllabus for the upcoming CA Foundation exam to crack the exam.

You should know that the CA Foundation exam is conducted twice a year, once in May and again in December. Thus to start with your CA Foundation preparation refer to the CA Foundation Syllabus 2020.

In this article, you will get the complete guide on CA Foundation Syllabus and Exam Pattern 2020

CA Foundation Syllabus and Exam Pattern 2020

CA Foundation Exam is an entry-level exam for students those want to pursue their career in Chartered Accountancy. It is a national level exam which includes 4 papers conducted by the Institute of Chartered Accountants of India (ICAI) twice a year as once in May and in December. The students can only apply and appear for the CA Foundation exam if they have cleared Class 12th.

You need to have a thorough knowledge of the CA Syllabus for all 4 papers and focus on your preparation for the CA Foundation exam. Besides the syllabus, you should also know about CA Foundation Exam Pattern to start their journey towards becoming a Chartered Accountant.

Crack The Exam Easily and Chase Your Dream

Check the complete CA Foundation Syllabus and Exam Pattern from below.

CA Foundation Syllabus 2020 for Paper 1 (Principles & Practice of Accounting)

Chapters Important Topics

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

CA Foundation Syllabus 2020 for Paper 2 (Business Law & Business Correspondence and Reporting)

Chapters Units
Section A- Business Laws

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 Types and Word Power Sentence Type
  • 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
Comprehension Passages and Note Making
  1. Comprehension Passages

  • Introduction to Comprehension Passages
  • Points to ponder
  • Sample Passages with answers
  • Exercises
  1. 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
Developing Writing Skills
  1. 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
  1. 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
  1. 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
  1. 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
  1. 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
  1. 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
  1. 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
  1. Meetings

  • Notice
  • Agenda
  • Drafting minutes
  • Action Taken Report

CA Foundation Syllabus 2020 for Paper 3 (Business Mathematics, Logical Reasoning and Statistics)

Chapters Topics

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.

Part B- Logical reasoning
  • 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
  1. 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
  1. Probability

  • Probability
  • Independent and dependent events
  • Mutually exclusive events
  • Total and Compound Probability and Mathematical Expectation
  1. Theoretical Distributions

  • Theoretical Distributions
  • Binomial Distribution
  • Poisson distribution – Basic application, and
  • Normal Distribution – Basic applications
  1. 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
  1. 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

  1. 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

  1. 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
  1. Price Determination in Different Markets

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

    • Price determination in these markets.

  1. 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

  1. 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

  1. Business Organizations

    • Overview of selected Indian and Global Companies

  1. Government Policies for Business Growth

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

  1. Organizations Facilitating Business

    • Indian Regulatory Bodies

    • RBI

    • SEBI

    • CCI

    • IRDAI

    • Indian Development Banks

    • IFCI

    • SIDBI

    • EXIM Bank

    • NABARD

  1. Common Business Terminologies

    • Finance and Stock & Commodity Markets Terminology

    • Marketing Terminology

    • Banking Terminology

    • Other Business Terminology

CA Foundation Exam Pattern 2020

The authorities have released CA Foundation 2020 exam pattern so that you 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. 

CA Foundation Exam Pattern Overview

Mode of exam

Pen – paper based

Type of question

Paper 1 and 2- Subjective

Paper 3 and 4- Objective

Exam Duration

3 hours for Paper 1 and 2

2 hours for Paper 3 and 4

Medium of Exam

English/ Hindi

Number of Papers

4

Total Marks

100 per paper

Negative Marking

Paper 1 and 2- None

Paper 3 and 4- ¼ mark will be deducted for incorrect responses

Every paper of CA Foundation has different weightage to consider whether it is CA Foundation Accounts Paper Pattern or CA Foundation Law Question Paper Pattern Weightage.

Papers Subject Marks Distribution
Paper 1 Principles And Practice Of Accounting (100 Marks)
Paper 2 Business Laws And Business Correspondence

Section A: Business Laws

Section B: Business Correspondence And Reporting

(60 Marks)(40 Marks)
Paper 3 Business Mathematics, Logical Reasoning, And Statistics

Section A: Business Mathematics

Section B: Logical Reasoning

Section C: Statistics

(40 Marks)

(20 Marks)

(40 Marks)

Paper 4 Business Economics And Business & Commercial Knowledge

Section A: Business Economics

Section B: Business and Commercial Knowledge

(60 Marks)

(40 Marks)

PAPER – 1: PRINCIPLES AND PRACTICE OF ACCOUNTING

Principles and Practices of Accounting is the very first paper in CA Foundation. This subject is renamed from Fundamentals of Accounting in CPT, it consists of basic accounting which students have studied in the 11th and 12th commerce field i.e. Basic Concept of Accounting and Financial Statements.

Content Area Weightage and Distribution
1. Theoretical Framework 5%-10%
2. Accounting Process

3. Bank Reconciliation Statement

4. Inventories

5. Concept and Accounting of Depreciation

25%-30%
6. Accounting for Special Transactions 15%-20%
7. Final Accounts of Sole Proprietors

8. Partnership Accounts

9. Financial Statements of Not-for-Profit Organizations

30%-40%
10. Introduction to Company Accounts 10%-15%

PAPER – 2: BUSINESS LAWS AND BUSINESS CORRESPONDENCE AND REPORTING

This is the second paper in CA Foundation divided into Two Sections

Section A- Business Law (60 Marks)

SECTION A: BUSINESS LAWS (60 MARKS)

Content Area Weightage and Distribution
1. The Indian Contract Act, 1872 25%-30%
2. The Sale of Goods Act, 1930 20%-25%
3. The Indian Partnership Act, 1932 20%-25%
4. The Limited Liability Partnership Act, 2008 5%-10%
5. The Companies Act, 2013 15%-20%

SECTION B: BUSINESS CORRESPONDENCE AND REPORTING (MARKS 40)

Content Area Weightage and Distribution
Part I: Communication

1. Communication

10%-15%
Part II: Sentence Types and Word Power 

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

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

20%-30%
Part III: Comprehension Passages and Note Making

 4. Comprehension Passages 

5. Note Making 

20%-30%
Part IV : Developing Writing Skills 

6. Introduction to Basic Writing 

7. Précis Writing 

8. Article Writing 

9. Report Writing 

10. Writing Formal Letters

11. Writing Formal Mails 

12. Resume Writing 

13. Meetings 

35%-40%

PAPER –3: BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS

This is the third paper of the CA Foundation which helps students to develop an understanding of Basic Maths and Statistical and their application in business, Finance, and Economics and also develop logical understanding to solve problems.

Part – A. Business Mathematics (40 Marks)

Content Area Weightage and Distribution
1. Ratio and Proportion, Indices and Logarithms

2. Equations and Matrices

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

20%-30%
4. Time value of Money 30%-40%
5. Permutations and Combinations

6. Sequence and Series

7. Sets, Relations and Functions

8. Basic applications of Differential and Integral calculus

30%-50%

Part – B: Logical Reasoning (20 Marks)

Content Area Weightage and Distribution
1. Number series, Coding and Decoding and odd man out.

2. Direction Tests 

3. Seating Arrangements

60%-70%
4. Blood Relations

5. Syllogism

30%-40%

Part – C: Statistics (40 Marks)

Content Area Weightage and Distribution
1. Statistical description of Data

2. Measures of Central tendency and Dispersion

45%-50%
3. Probability

4. Theoretical Distributions

25%-30%
5. Correlation and Regression 10%-15%
6. Index Numbers and Time Series 10%-15%

PAPER – 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE

This is the fourth and last subject of CA Foundation, this subject is included to help students to make the concept of Business Economics strong and apply such concepts and theories in simple problem-solving.

PART I: BUSINESS ECONOMICS (60 Marks)

Content Area Weightage and Distribution
1. Introduction to Business Economics 15%-20%
2. Theory of Demand and Supply

3. Theory of Production and Cost

35%-40%
4. Price Determination in Different Markets 25%-30%
5. Business Cycles  15%-20%

PART – II: BUSINESS AND COMMERCIAL KNOWLEDGE (40 MARKS)

Content Area Weightage and Distribution
1. Introduction to Business 15%-18%
2. Business Environment 15%-18%
3. Business Organizations  15%-20%
4. Government Policies for Business Growth 15%-18%
5. Organizations Facilitating Business 15%-18%
6. Common Business Terminologies 15%-18%

We have covered a detailed guide on ICAI CA Foundation Syllabus and Exam Pattern 2020. Feel free to ask us any questions in the comment section below.

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