Syllabus CA Foundation 2020:
1. Theoretical Framework
i. Meaning and Scope of accounting
ii. Accounting Concepts, Principles and Conventions
iii. Accounting terminology - Glossary
iv. Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities
v. Accounting Policies
vi. Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates
vii. Accounting Standards - Concepts and Objectives
viii. Indian Accounting Standards - Concepts and Objectives
2. Accounting Process
I. Books of Accounts
ii. Preparation of Trial Balance
iii. 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
i. Bills of exchange and promissory notes
Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills.
ii. Sale of goods on approval or return basis
Meaning of goods sent on approval or return basis and accounting treatment.
iii. 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.
iv. 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.
v. Royalty accounts
Meaning of the term “Royalty” and Accounting Treatment thereof.
vi. Average due Date
Meaning, Calculation of average due date in various situations.
vii. Account Current
Meaning of Account Current, Methods of preparing 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
i. Final Accounts of Partnership Firms
ii. Admission, Retirement and Death of a Partner including Treatment of Goodwill
iii. 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
i. Definition of shares and debentures
ii. Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
iii. Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.
11. Basic Accounting Ratios (profitability, solvency, liquidity and turnover)
Section A - Business Laws- 60 Marks
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 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.
Paper 2: Section B - Business Correspondence and Reporting- 60 Marks
Contents
Part I:
1. Communication
i. Types
ii. Directions
iii. Network
iv. Process
v. Problems
vi. Barriers
vii. Types of Communication
a. Interpersonal Skills
b. Listening Skills
c. Emotional Intelligence
viii. Exercises with Answers
Part II: Sentence Types and Word Power
2. Sentence Types (Direct-Indirect, Active-Passive Speech)
i. Sentence: Definition
ii. Classification of sentence based on connotation
a. Assertive sentences
b. Interrogative sentences
c. Imperative sentences
d. Exclamatory sentences
e. Optative sentences
iii. Sentence Structure
a. Subject and Predicate
b. Verb (Auxiliary, Finite)
c. Object (Direct, Indirect)
d. Complement
e. Adjunct or Adverbial
f. Clause Structure
g. Types of Clauses
1. Independent clauses
2. Dependent clauses
3. Relative or noun clauses
iv. Types of sentences
a. Simple sentence
b. Compound sentence
c. Complex sentence
d. Compound-complex sentence
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 with Answers
3. Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations & Idioms
I. Introduction
i. Significance of improving vocabulary
ii. How to improve vocabulary
iii. Root words
iv. Synonyms and Antonyms
v. Words formed by using Prefixes
vi. Words formed by using Suffixes
vii. Phrasal verbs
viii. Collocations
ix. Idioms
x. Exercises with Answers
Part III: Comprehension Passages and Note Making
4. Comprehension Passages
i. Introduction to Comprehension Passages
ii. Points to ponder
iii. Sample Passages with answers
iv. Exercises with Answers
5. Note Making
i. Introduction to Note Making
ii. Significance of Note Making
iii. Detailed Format Heading (Title)
a. Sub-heading
b. Indentation
c. Points
d. Use of abbreviations
e. Summary
f. Content
g. Expression
iv. Steps to Comprehend and summarize text
v. Helpful Hints
vi. Sample Passages with Notes
vii. Exercises with Answers
Part IV: Developing Writing Skills
6. 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
viii. Exercises with Answers Hints
7. Précis Writing
i. What is Précis writing?
ii. Features of good Précis writing
iii. How to write a Précis
iv. Do's and Don'ts of Précis writing
v. Examples (Passages with Précis)
vi. Exercises with Answers
8. Article Writing
i. What is an Article?
ii. Essential elements of Article Writing
iii. Detailed Format
a. Title
b. By- Writer's Name
c. Body
- Introduction
- Main Idea-Support
- Conclusion
d. Sample Articles
e. Exercises with Answers
9. 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
iv. Detailed Format for (iii) 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 with Answers Clues
10. Writing Formal Letters
i. Types of Letters
a. Circulars
b. Complaints
c. Memos
d. Promotional Content
e. Sales
f. Recovery/Remittances
ii. Detailed format for (I) above
a. Date
b. Salutation
c. Subject
d. Body of the letter
- First paragraph
- Second paragraph
e. Complimentary Closure
iii. Points to Remember
iv. Sample Letters
v. Exercises with Answers Clues
11. 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. Proof read
g. Feedback
iv. Tips and Conventions of Mails
v. Sample Mails
vi. Exercises with Answers Clues
12. 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 with Answers Clues
13. Meetings
i. Notice
ii. Agenda
iii. Drafting minutes
iv. Action Taken Report
v. Exercises with Answers Clues.
Contents
Part A: Business Mathematics- 40 Marks
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
i. Equations: Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable.
ii. 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
i. Simple Interest
ii. Compound interest
iii. Depreciation
iv. Effective Rate of Interest
v. Present Value
vi. Net Present Value
vii. Future Value
viii. Perpetuity
ix. Annuities
x. Sinking Funds
xi. Valuation of Bonds
xii. 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, 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 20 Marks
1. Number series, Coding and Decoding and odd man out.
2. Direction Tests
3. Seating Arrangements
4. Blood Relations
5. Syllogism.
Part C: Statistics 40 Marks
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, Co-efficient 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
a. Index Numbers: Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers.
b. Time Series Analysis - Components of Time Series and Calculation of Trend by Moving Average Method.
Part I - Business Economics 60 Marks
Contents
1. Introduction to Business Economics
i. Meaning and scope of Business Economics
ii. Basic problems of an Economy and role of Price Mechanism.
2. Theory of Demand and Supply
i. Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, Income and Cross elasticity
ii. Theory of consumer's behaviour - Marshallian approach and Indifference curve approach
iii. Demand Forecasting
iv. Meaning and determinants of supply, Law of supply and Elasticity of supply.
3. Theory of Production and Cost
i. Meaning and Factors of production
ii. Laws of Production - The Law of Variable Proportions and Laws of Returns to Scale, Producer's equilibrium
iii. Concepts of Costs - Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
4. Price Determination in Different Markets
i. Various forms of markets - Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
ii. Price determination in these markets.
5. Business Cycles
i. Meaning
ii. Phases
iii. Features
iv. Causes behind these Cycles.
Part II - Business and Commercial Knowledge- 40 Marks
Contents
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
i. Indian Regulatory Bodies - RBI, SEBI, CCI, IRDAI
ii. Indian Development Banks - IFCI, SIDBI, EXIM Bank, NABARD
6. Common Business Terminologies
i. Finance and Stock & Commodity Markets Terminology
ii. Marketing Terminology
iii. Banking Terminology
iv. Other Business Terminology.
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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