CA Foundation Syllabus 2021 (Updated)

We are providing you with a complete ICAI CA Foundation syllabus May 2021 under separate heads for ease of your understanding. This CA Foundation new syllabus is applicable for May 2021 Exams and onwards. Below we have also provided you the syllabus of  CA Foundation 2021 PDF link.

Paper 1:  Principles and Practices of Accounting Syllabus (100 Marks)

Fundamentals of Accounting is renamed by Principles and Practices of Accounting. This is the basic understanding of Accounting that students have gone through in 11th and 12th standard.

The understanding of basic concepts and application of the same in preparing Financial statements at the initial level.

Check CA Foundation accounts Syllabus 2021 of Principle and practice of account paper. 

• Topics Covered

1. Theoretical Framework
2. Accounting Concepts, Principles, and Conventions.
3. Accounting Terminology- Glossary
4. Capital and Revenue Expenditure, Capital and Revenue Receipts, contingent assets, and contingent liabilities.
5. Accounting Policies
6. Accounting as a Measurement Discipline- Valuation Principles and Accounting Estimates.
7. Accounting Standards- Concepts and objectives.
8. Indian Accounting Standards(IND AS) – Concepts and Objectives (Just an Overview)

• Accounting Process

1. Books of Accounts
2. Preparation of Trial Balance
3. Rectification of Errors

• Bank Reconciliation Statements

Introductory part, and its preparation.

• Inventories

Calculation of cost, Net Realisable Value, and its disclosure in the Financial Statements.

• Concept and accounting of Depreciation

Methods of Depreciation, Its computation, treatment, and relevant disclosure in the Financial Statements.

• Accounting for Special Transactions

1. Bill of Exchange and Promissory Notes: Meaning and its treatment in the Accounts
2. Sale of Goods on approval or return basis:  Meaning and its accounting treatment.
3. Consignments: Meaning of consignment transactions, the difference between sale and consignment, the accounting treatment of such transactions, and events in the books of consignor and consignee.
4. Average due date: Meaning and its calculation in various situations.
5. Account Current: Meaning and Methods of its preparation.

• 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 –

1. Final Accounts of Partnership Firms
2. Admission, Retirement, and Death of a Partner including Treatment of Goodwill
3. Introduction to LLPs and Distinction of LLPs from Partnership.

• Financial Statements of Non-Profit Organisations

The 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

1. Definition of shares and debentures
2. The issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
3. Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.
4. Basic Accounting Ratios (Profitability, Solvency, Liquidity, and Turnover)

Paper 2: Business Laws and Business Correspondence and Reporting Syllabus 2021

This is the second paper is of CA Foundation. The  Paper is divided into 2 parts of Business Laws and Business Correspondence. Here the students will be taught about the Business law company accounts and more.

Check the CA Foundation Business Laws and Business Correspondence and Reporting Syllabus 2021.

Section A – Business Laws Syllabus (60 Marks)

Basic Understanding of the General Laws which are required to comply with the attestation work and preparation of Financial Statements.

Check CA Foundation Business Law Syllabus 2021 Examination.

Contents

Indian Contract Act, 1872 –  An overview of Sections 1 to 75 covering the general nature of the contract, consideration, other essential elements of a valid contract, performance of contract, breach of contract, Contingent and Quasi Contract.

The Sales 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 the 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 Syllabus (40 Marks)

Check CA Foundation Business Correspondence and Reporting Syllabus 2021.

This subject is newly introduced in the CA Foundation course seeing their requirement in the corporate world. The Basic aim is to develop good communication skills for Business Correspondence and reporting.

Contents

PART-I

• Communication
  1. Types
  2. Directions
  3. Network
  4. Process
  5. Problems
  6. Barriers
  7. Types of Communications
     1. Interpersonal Skills
     2. Listening Skills
     3. Emotional Intelligence
  8. Sample question with answers
  9. Exercise

PART-II Sentence Type and Word Power

• Sentence Types (Direct-Indirect, Active-Passive Speech)
  1. Sentence: Definition
  2. Classification of sentence based on connotation
     1. Assertive sentences
     2. Interrogative sentences
     3. Imperative sentences
     4. Exclamatory sentences
     5. Optative sentences
  3. Sentence Structure
     1. Subject and Predicate
     2. Verb (Auxiliary, Finite)
     3. Object (Direct , Indirect)
     4. Complement
     5. Adjunct or Adverbial
     6. Clause Structure
     7. Types of Clauses
        1. Independent clauses
        2. Dependent clauses
        3. Relative or noun clauses
  4. Types of sentences
     1. Simple sentence
     2. Compound sentence
     3. Complex sentence
     4. Compound-complex sentence
  5. Direct-Indirect Speech
     1. Introduction
     2. Procedure for converting Direct speech into Indirect speech
        1. Rules for converting Direct speech into Indirect speech
        2. Change in pronouns
        3. Change in tenses
        4. Change in modals
        5. Changes for Imperative sentences
        6. Changes for Exclamatory sentences
        7. Changes for Interrogative sentences
        8. Punctuation in Direct speech
     3. Rules for converting Indirect speech into Direct speech
  6. Active Passive Voice: Introduction
     1. Usage: Active Vs passive voice
     2. Reasons for using Passive voice
     3. Changing Passive voice to Active voice
     4. Changing Active voice to Passive voice
     5. Suggestions for using Active and Passive voice
  7. Verbs Voice: Active or passive
  8. Exercises with Answers

• Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations & Idioms

1. 1. Introduction
   2. Significance of improving vocabulary
   3. How to improve vocabulary
   4. Root words
   5. Synonyms and Antonyms
   6. Words formed by using Prefixes
   7. Words formed by using Suffixes
   8. Phrasal verbs
   9. Collocations
   10. Idioms
   11. Exercises with Answers

Part III: Comprehension Passages and Note-Making

• Comprehension Passages
  1. Introduction to Comprehension Passages
  2. Points to Ponder
  3. Sample Passages with answers
  4. Exercises with Answers

• Note Making
  1. Introduction to Note Making
  2. Significance of Note Making
  3. Detailed Format Heading(Title)
     1. Sub-heading
     2. Indentation
     3. Points
     4. Use of abbreviations
     5. Summary
     6. Content
     7. Expression
  4. Steps to Comprehend and summarize the text
  5. Helpful Hints
  6. Sample Passages with Notes
  7. Exercises with Answers

Part IV: Developing Writing Skills

• Introduction to Basic Writing
  1. Introduction
  2. Process of writing
  3. Styles of Writing
  4. Significance of writing skills for students
  5. Writing Conventions
  6. Characteristics of good writing
  7. Do’s and Don’ts of good writing
  8. Exercises with Answers Hints

• Precis Writing
  1. What is Precis writing?
  2. Features of good Precis writing
  3. How to write a Precis
  4. Do’s and Don’ts of Precis writing
  5. Examples(Passages with Precis)
  6. Exercises with Answers

• Article Writing

1. What is an Article?
2. Essential elements of Article Writing
3. Detailed Format

-Title

1. 1. By- Writer’s Name
   2. Body
      1. Introduction
      2. Main Idea-Support
      3. Conclusion
   3. Sample Articles
   4. Exercises with Answers

• Report Writing
  1. What is a Report?
  2. Essential elements of Report Writing
  3. Kinds of Reports
     1. Reporting for a Meeting/Assembly
     2. Reporting for a Newspaper
     3. Reporting for a Magazine
  4. Detailed Format for (iii) above
  5. Title
  6. By- Writer’s Name
  7. Place, Date
  8. Body
     1. What
     2. When
     3. Where
     4. Who
     5. How
  9. Tips and Conventions of Report Writing
  10. Sample Reports
  11. Exercises with Answers Clues

• Writing Formal Letters
  1. Types of Letters
     1. Circulars
     2. Complaints
     3. Memos
     4. Promotional Content
     5. Sales
     6. Recovery/Remittances
  2. Detailed format for (I) above
     1. Date
     2. Salutation
     3. Subject
     4. Body of the letter
        1. First paragraph
        2. Second paragraph
     5. Complimentary Closure
  3. Points to Remember
  4. Sample Letters
  5. Exercises with Answers Clues

• Writing Formal Mails
  1. How to Write a Formal Mail?
  2. Writing Effective Mails
  3. Essential elements of Mails
     1. Subject line
     2. Formal Greetings
     3. Target Audience(Reader)
     4. Clarity and Conciseness
     5. Formal Closing
     6. Proofread
     7. Feedback
  4. Tips and Conventions of Mails
  5. Sample Mails
  6. Exercises with Answers Clues

• Resume Writing
  1. Essential Elements of Resume
     1. Name and contact details
     2. Objective Summary
     3. Academic Qualifications and Achievements
     4. Co-curricular Achievements
     5. Training Programs attended/completed
     6. Strengths
     7. Interests/Hobbies
     8. Declaration
     9. Signature
  2. Resume Writing Tips and Conventions
  3. Sample Resumes
  4. Exercises with Answers Clues

• Meetings
  1. Notice
  2. Agenda
  3. Drafting minutes
  4. Action Taken Report
  5. Exercises with Answers Clues.

Paper 3: Business Mathematics, Logical Reasoning, and Statistics syllabus

Check CA Foundation Business Mathematics, Logical reasoning, and statistics syllabus 2021.

This is the third Subject of CA Foundation students will be taught about basic mathematics, statistical and their application in business, finance, and economics.

Objective

1. To develop an understanding of the basic CA Foundation Maths syllabus and Statistical tools and their application in Business, Finance, and Economics.
2. To develop CA Foundation logical reasoning skills and apply the same in simple problem-solving.

Contents

Part A: Business Mathematics Syllabus (40 Marks)

Check CA Foundation Business Mathematics Syllabus 2021 Examination.

• 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.

• Equations and Matrices

1. Equations: Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable.
2. 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

1. Simple Interest
2. Compound interest
3. Depreciation
4. Effective Rate of Interest
5. Present Value
6. Future Value
7. Perpetuity
8. Annuities
9. Sinking Funds
10. Valuation of Bonds
11. Calculations of Returns1. Nominal Rate of Return
    2. Effective Rate of Return
    3. Compound Annual Growth Rate (CAGR)

• Permutations and Combinations

Basic concepts of Permutations and Combinations: Introduction, 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 a special series

• Sets, Relations and Functions

They are the set operations that help to discover the relationship between the elements of two or more distinct sets or between the elements of the same set.

• Basic applications of Differential and Integral calculus

(Excluding the trigonometric applications), Applications of Marginal Cost and Marginal Revenue etc.

Part B: Logical Reasoning Syllabus (20 Marks)

Check CA Foundation Logical Reasoning Syllabus 2021 Examination.

• Number Series, Coding and Decoding and the odd man out.
• Direction Tests
• Seating Arrangements
• Blood Relations
• Syllogism.

Part C: Statistics Syllabus (40 Marks)

Check CA Foundation Statistics Syllabus 2021.

• Statistical description of DataStatistical 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 DispersionMeasures of Central Tendency and Dispersion: Mean, Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation.
• ProbabilityProbability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.
• Theoretical DistributionsTheoretical Distributions: Binomial Distribution, Poisson distribution – Basic application and Normal Distribution – Basic applications.
• Correlation and RegressionCorrelation 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
  1. Index Numbers: Uses of Index Numbers, Problems involved in the construction of Index Numbers, Methods of construction of Index Numbers.
  2. Time Series Analysis: Components of Time Series and Calculation of Trend by Moving Average Method.

Paper 4: Business Economics and Business and Commercial Knowledge Syllabus

Check CA Foundation Business Economics and Business and Commercial Knowledge syllabus 2021.

This is the 4th and last subject of the CA Foundation. These subjects will help the student in making their concept of Business Economics Strong. You can apply such concepts and theories in your simple problem-solving.

Part I – Business Economics Syllabus (60 Marks)

Check CA Foundation Business Economics syllabus 2021.

Objective

To develop an understanding of concepts and theories in Business Economics and apply such concepts and theories in simple problem-solving.

Content

• Introduction to Business Economics
  1. Meaning and scope of Business Economics
  2. Basic problems of an economy and the role of Price Mechanism.
• Theory of Demand and Supply
  1. Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, Income and Cross elasticity
  2. Theory of consumer’s behavior – Marshallian approach and Indifference curve approach
  3. Demand Forecasting
  4. Meaning and determinants of supply, Law of supply, and Elasticity of supply.
• Theory of Production and Cost
  1. Meaning and Factors of production
  2. Laws of Production – The Law of Variable Proportions and Laws of Returns to Scale, Producer’s equilibrium
  3. Concepts of Costs – Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
• Price Determination in Different Markets
  1. Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
  2. Price determination in these markets.
• Business Cycles
  1. Meaning
  2. Phases
  3. Features
  4. Causes behind these Cycles.

PART-II Business and Commercial Knowledge Syllabus(40 Marks)

Check CA Foundation Business and commercial knowledge syllabus 2021.

Objective

To develop an understanding of common business and commercial concepts and to keep abreast with developments in the business and commercial world.

Contents

• Business and Commercial Knowledge – An IntroductionNature of Busines, Profession, and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.
• Business EnvironmentMicro 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 OrganizationsOverview of selected Indian and Global Companies.
• Government Policies for Business GrowthPolicies creating a conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
• Organizations Facilitating Busines

IFCI, SIDBI, Exim Banks removed as per the update of the CA  foundation 2021 syllabus.

1. Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI
2. Indian Development Banks – NABARD

• Common Business Terminologies
  1. Finance and Stock & Commodity Markets Terminology
  2. Marketing Terminology
  3. Banking Terminology
  4. Other Business Terminology