Community hub
0 subscribers7 pages, 0 posts
Recent from talks
All channels
Be the first to start a discussion here.
Be the first to start a discussion here.
Be the first to start a discussion here.
Be the first to start a discussion here.
Contribute something
Welcome to the community hub built to collect knowledge and have discussions related to CA Foundation Course.
Nothing was collected or created yet.
CA Foundation Course
View on Wikipediafrom Wikipedia
The CA Foundation Course is the entrance level for the chartered accountancy course offered by the Institute of Chartered Accountants of India (ICAI).[1] Earlier, it was known as the Common Proficiency Test. CA Foundation contains 5 series of papers. The CA Foundation exam replaced the CA-CPT exam and now is conducted by the Institute of Chartered Accountants of India (ICAI) thrice a year. After the CA Foundation exam, students need to complete the Intermediate and Final levels as well to become a chartered accountant
Eligibility
[edit]The candidate can register for CA Foundation after passing the secondary school examinations (Class-X) and appear in the foundation exam after qualifying for the 12th examinations. ICAI has allowed provisional registration for 10th class passed students.Eligibility Criteria for CA Foundation Course 1. Educational Qualification: • Class 10: Students who have passed the Class 10 examination conducted by an examining body constituted by law in India or an examination recognized by the Central Government or the State Government as equivalent can register for the CA Foundation course on a provisional basis.
• Class 12: To appear for the CA Foundation exam, students must have passed the Class 12 examination from a recognized board. Provisional registration is allowed after Class 10, but students must clear their Class 12 exams to be eligible to sit for the Foundation exam.
1. Registration with ICAI:
• Students must register with the Institute of Chartered Accountants of India (ICAI) for the CA Foundation course. The registration should be completed at least four months before the first day of the month in which the exam is held. For example, to appear in the May/June exam, students should register by January 1st, and for the November/December exam, by July 1st.
2. Study Period:
• A minimum study period of four months is required before appearing for the CA Foundation exam. This period allows students to prepare adequately for the examination.
3. Age Limit:
• There is no age limit for registering for the CA Foundation course. Students of any age who meet the educational qualifications can apply.
4. Exemptions:
• Certain categories of students may be exempt from appearing for the CA Foundation exam. For example, graduates or postgraduates in commerce with a minimum of 55% marks or graduates in other streams with a minimum of 60% marks can directly register for the CA Intermediate course register for the ca intermediate course, bypassing the Foundation level.
Test model
[edit]CA Foundation is a partially subjective and partially objective examination consisting of four papers:
Paper 1: Accounting
Paper 2: Business Laws
Paper 3: Quantitative Aptitude (Business Mathematics, Logical Reasoning, and Statistics)
Paper 4: Business Economics
Papers 1 and 2 are subjective, while Papers 3 and 4 are objective. Each paper carries 100 marks, making the total 400 marks.
ICAI New Course - Prospectus. [2]
Registration
[edit]A candidate has to register for CA Foundation Course by filling up the online registration form available on the ICAI website. The last date for registration is December/June for the May/Nov terms of examination. Registration for the CA Foundation course is valid only for three years.
Date of the exams
[edit]Exams for the CA Foundation are held in May, September And January . ICAI announces the CA Foundation exam schedule in the month of May for the September term of examination and in the month of January for the May term of examination.[3]
Exemption
[edit]Graduates, post-graduates and students with equivalent degrees are exempt from the course requirement. Commerce graduates with 55% and other graduates with 60% marks can take direct admission for the CA Intermediate
See also
[edit]- Education in India[4]
References
[edit]- ^ "45774bos35949foundation-about.pdf" (PDF). Institute of Chartered Accountants of India. Archived (PDF) from the original on 30 August 2025. Retrieved 16 November 2025.
- ^ "ICAI - The Institute of Chartered Accountants of India". ICAI. Retrieved 16 November 2025.
- ^ 11 March 2019. "54489icaiexam110319a.pdf" (PDF). Institute of Chartered Accountants of India. Archived (PDF) from the original on 30 August 2025. Retrieved 16 November 2025.
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ Academy, AVJ (14 June 2025). "CA Salary in India 2025: Salaries, Scope & Career with AVJ Academy". Retrieved 14 June 2025.
External links
[edit]CA Foundation Course
View on Grokipediafrom Grokipedia
The CA Foundation Course is the entry-level examination and foundational stage of the Chartered Accountancy (CA) qualification in India, administered by the Institute of Chartered Accountants of India (ICAI), designed to evaluate aspiring accountants' basic proficiency in core subjects such as accounting principles, business laws, quantitative aptitude, and economics.[1] Introduced in 2018 as a replacement for the earlier Common Proficiency Test (CPT), it serves as the gateway for students pursuing the prestigious CA profession, which was established under the Chartered Accountants Act, 1949, to regulate and promote the accounting field in the country.[2][3]
Eligibility for the CA Foundation Course allows provisional registration after passing Class 10 examinations, with candidates from any stream eligible to appear after completing Class 12 (or equivalent) from a recognized board.[4] Registration occurs twice annually—for the May/June and November sessions—with enrollment valid for four years under the New Scheme of Education and Training effective from 2024, allowing multiple attempts based on the exam frequency.[5] As of 2024, the ICAI has expanded the exam frequency to three sessions per year—May/June, September, and January—to provide more opportunities for candidates while maintaining rigorous standards.[6]
The examination structure comprises four papers, each worth 100 marks, totaling 400 marks, with a passing requirement of at least 40% in each paper and 50% aggregate.[1] Papers 1 and 2 are subjective and descriptive, while Papers 3 and 4 are objective-type multiple-choice questions (MCQs), fostering both analytical and applicative skills essential for professional accounting.[1] The syllabus under the new scheme effective from 2024 emphasizes practical relevance:
Accounting is the systematic process of identifying, recording (in journals), classifying (in ledgers), summarizing (via trial balance, profit & loss account, balance sheet), analyzing, interpreting, and communicating financial transactions and events in monetary terms to aid decision-making. It is often called the "language of business." 2. Objectives of Accounting
Functions include measurement of past performance, forecasting, decision-making support, comparison/evaluation, control, and aiding government regulation/taxation. 4. Bookkeeping vs. Accounting
Bookkeeping involves only recording transactions; accounting includes summarizing, interpreting, and preparing financial statements. 5. Sub-Fields of Accounting
Sub-fields include financial accounting, management accounting, cost accounting, social responsibility accounting, and human resource accounting. 6. Users of Accounting Information
Users are internal (management, owners) and external (investors, lenders, suppliers, government, public). 7. Accounting Concepts, Principles, and Conventions
Limitations include ignoring non-monetary factors (e.g., employee morale), reliance on historical data, influence of personal judgments, failure to account for inflation, and exclusion of human resources valuation. 9. Role of Chartered Accountants
Chartered accountants perform auditing, taxation, financial advisory, management consultancy, and contribute to economic growth. The accounting process forms a core practical component, encompassing the double-entry system for recording transactions through journals, ledgers, trial balances, and subsidiary books. Students learn to post entries from source documents into journals, maintain ledger accounts for classification, and prepare trial balances to verify arithmetical accuracy. Subsidiary books, including cash books and purchase/sales day books, streamline the process for high-volume transactions. Error rectification techniques involve identifying and correcting errors like errors of omission or commission to ensure trial balance agreement. This section, weighted at 30-35%, emphasizes procedural accuracy and is essential for subsequent topics.[32][29] Bank reconciliation statements address discrepancies between cash book balances and bank statements, arising from timing differences, errors, or unrecorded items like cheques in transit. The process involves adjusting the cash book for bank charges or interest, and preparing a reconciliation to match passbook figures, promoting vigilance in cash management. Practical problems require step-by-step computations to compute adjusted balances, highlighting the importance of internal controls in accounting.[32] Inventoriation methods determine the cost of goods sold and closing stock valuation, with key approaches including First-In-First-Out (FIFO), Last-In-Last-Out (LIFO), and weighted average cost. Under FIFO, earliest costs are assigned to sales, reflecting current values for closing stock; LIFO assumes latest costs for sales, useful in inflationary environments but less common under Ind AS. The weighted average method smooths costs by averaging total inventory expenses. These methods, applied to perpetual or periodic systems, ensure consistent valuation aligned with accounting conventions. Questions integrate these with consignment accounts, where inventory is held on behalf of consignors, requiring del credere commissions and stock statements.[32][29] Depreciation accounting allocates the cost of tangible assets over their useful lives, with straight-line method (SLM) providing equal annual charges and written-down value (WDV) accelerating expenses in early years. The SLM formula is: For WDV, the formula is: \text{Depreciation} = \text{[Book Value](/page/Book_value) at beginning of year} \times \text{Rate of Depreciation} These methods, including additions, disposals, and changes in estimates, comply with Ind AS 16 on property, plant, and equipment. Practical exercises involve schedule preparation for multiple assets, underscoring asset management in financial statements.[32] Final accounts of sole proprietors culminate the syllabus, involving preparation of trading account, profit and loss account, and balance sheet from trial balance. The trading account computes gross profit by matching sales with cost of goods sold, adjusted for closing stock and direct expenses. The profit and loss account derives net profit after indirect expenses like salaries and depreciation. The balance sheet presents assets and liabilities in a classified format, adhering to the accounting equation. Adjustments for outstanding expenses, prepaid incomes, and provisions ensure true and fair representation, with 20-25% weightage emphasizing holistic financial analysis.[32][29]
where is the future value, is the present value, is the interest rate per period, and is the number of periods, while the present value is
[37] Permutations and combinations address counting principles for business permutations like inventory arrangements, sequences and series (arithmetic and geometric progressions) model progressive financial series such as loan repayments, and sets, functions, and relations provide basics for data categorization. Basic concepts of differential and integral calculus introduce rates of change relevant to marginal analysis in economics, though without advanced derivations.[37]
where are individual values, is the mean, and is the number of observations, with standard deviation as its square root:
[37] Probability concepts cover basic rules and events for risk evaluation in investments, theoretical distributions (binomial, Poisson) model discrete outcomes like sales forecasts, and correlation and regression analyze relationships between variables; the correlation coefficient is
where Cov is covariance and denotes standard deviations. Index numbers track changes in economic indicators, and time series analyze trends for forecasting business performance.[37] Allocated 40 marks, this part stresses application to commercial data interpretation.[30]
[5][43][44]
These dates are drawn from official ICAI timetables.[47][48] Each paper lasts three hours for Papers 1 and 2 (objective and subjective components) and two hours for Papers 3 and 4 (primarily objective), conducted in a single afternoon shift from 2:00 PM to 5:00 PM IST or 2:00 PM to 4:00 PM IST, respectively, with 15 minutes of advance reading time for Papers 1 and 2.[47][48] Exams are held at designated centers across India and select international locations, with no sessions on public holidays like Milad-un-Nabi.[48]
Candidates must submit a separate examination application form online via the ICAI Self Service Portal (eservices.icai.org) after completing course registration, typically opening 2-3 months before the exam session. The fee is ₹1,500 for Indian centers (or equivalent in foreign currency for overseas centers) for the full set of four papers, payable online; late submission incurs an additional ₹600.[49] The last date for submission without late fee is approximately one month before the exam start, such as July 18, 2025, for the September session.[49] Admit cards are released about 15 days prior, downloadable from the same portal.[50]
Results are declared 1-2 months after the final exam day, accessible via the ICAI website (icai.nic.in) along with digital marksheets and merit lists for top performers (top three in each paper and overall). For example, the September 2025 results were announced on November 3, 2025, around 5:00 PM IST.[51] Candidates receive individual roll numbers and marks via email/SMS, with provisions for verification and re-evaluation within one month.[51]
To aid preparation, ICAI conducts two series of mock tests approximately one month before each exam session, simulating the actual format and timing. For the September 2025 session, Series I occurred from August 11-14 and Series II from August 25-29, available both online and at exam centers.[49] These tests help candidates assess readiness and are mandatory for attendance in some cases under the new scheme's emphasis on practical simulation.[52]
- Paper 1: Accounting – Covers principles, practices, journal entries, financial statements, and basic accounting standards.
- Paper 2: Business Laws and Business Correspondence and Reporting – Includes company law, contract act, and communication skills for business reporting.
- Paper 3: Quantitative Aptitude (Business Mathematics, Logical Reasoning, and Statistics) – Focuses on mathematical tools, data interpretation, and reasoning for business decisions.
- Paper 4: Business Economics and Business and Commercial Knowledge – Encompasses economic principles, microeconomics, and awareness of business environments.[1][7]
Introduction
Overview
The CA Foundation Course is the entry-level examination administered by the Institute of Chartered Accountants of India (ICAI) to evaluate the foundational knowledge of aspiring chartered accountants in core areas such as accounting, business laws, quantitative aptitude, and economics.[1] It serves as a gateway for students pursuing the prestigious Chartered Accountancy qualification, ensuring they possess the basic conceptual understanding necessary for advanced professional studies and practice.[9] The course structure comprises four papers: Principles and Practice of Accounting (subjective), Business Laws and Business Correspondence and Reporting (subjective), Quantitative Aptitude (objective), and Business Economics and Business and Commercial Knowledge (objective). Successful completion of all papers with the required minimum marks qualifies candidates to proceed to the CA Intermediate level.[1] As the initial stage in ICAI's three-tier CA qualification pathway—Foundation, Intermediate, and Final—the course is mandatory for non-graduate entrants, while graduates may opt for direct entry into Intermediate under certain conditions. It integrates with the overall program by building essential skills before the mandatory three-year practical training (articleship) that follows the Intermediate stage and leads to the Final examination.[9] Annually, over 300,000 students appear for the CA Foundation exams, reflecting its popularity among commerce aspirants in India. Pass rates have varied, typically 20-30% in earlier years but lower in recent 2025 sessions (e.g., 14.78% in September).[10] Under the New Scheme of Education and Training implemented in 2024, the examination cycle has expanded to three sessions per year (January, May/June, and September), with a revised syllabus emphasizing application-based learning to align with contemporary professional demands.[11]History
The Institute of Chartered Accountants of India (ICAI) was established on July 1, 1949, as a statutory body under the Chartered Accountants Act, 1949, to regulate the profession of chartered accountancy in India.[12] Initially, aspiring chartered accountants could register directly for the Intermediate level examination after completing Class 12 with commerce subjects or after graduation, subject to specific eligibility criteria, without a preliminary screening test.[13] This direct entry route aimed to build professional competence progressively, but it evolved with regulatory reforms to standardize and strengthen foundational education. By the early 2000s, the need for a more structured entry mechanism became evident to ensure candidates possessed basic knowledge in accounting, law, and quantitative subjects before advancing. In 2006, ICAI introduced the Common Proficiency Test (CPT) as the entry-level examination, replacing the direct registration pathway for post-Class 12 students and serving as an objective screening tool held twice a year.[14] The CPT operated from 2006 until December 2017, focusing on multiple-choice questions to assess foundational aptitude, with a significant number of students appearing annually by its later years.[15] However, feedback highlighted limitations in depth and alignment with evolving global accounting practices, prompting further reforms. The CPT emphasized India's adoption of Indian Accounting Standards (Ind AS), converged with International Financial Reporting Standards (IFRS), which began phased implementation from 2016-17 to enhance financial reporting quality.[16] The CA Foundation Course was introduced through ICAI's Revised Scheme of Education and Training, notified on May 26, 2017, and effective from July 1, 2017, explicitly replacing the CPT to foster deeper skill-building in accounting principles, business laws, mathematics, and economics while aligning more closely with international standards like those from the International Federation of Accountants (IFAC).[17][18] This shift extended the study period to eight months post-registration and incorporated subjective elements alongside objective questions for comprehensive evaluation. The first CA Foundation examinations were conducted in May 2018, marking the official transition, with results declared in July alongside the final CPT session in June 2018.[19] Subsequent milestones included the integration of digital learning tools by 2020, spurred by the COVID-19 pandemic, when ICAI launched the Digital Learning Hub offering e-study materials, virtual classes, and interactive resources for Foundation students to facilitate remote access.[20] In 2023, ICAI approved a New Scheme of Education and Training on June 23, effective for new registrations from August 2, 2023, which streamlined the Foundation syllabus by reducing redundancies, merging related topics, and introducing self-paced online modules in later CA stages to promote flexibility and technology integration.[21] To enhance accessibility, from May/June 2024, ICAI expanded the Foundation exam cycles to three annually—January, May/June, and September—allowing students greater flexibility in scheduling, with the September 2025 session seeing 98,827 appearances.[22] These developments continue to build on ICAI's foundational legacy, emphasizing Ind AS and global best practices in response to India's dynamic economic landscape.[16]Eligibility and Registration
Eligibility Criteria
To enroll in the CA Foundation Course under the New Scheme of Education and Training implemented by the Institute of Chartered Accountants of India (ICAI), candidates must meet specific academic prerequisites. Students are eligible to register provisionally after passing the Class 10th examination (or equivalent) conducted by a recognized examining body in India or an examination recognized by the Central or State Government as equivalent thereto. However, they can only appear for the Foundation Examination after having appeared in the Class 12th (Senior Secondary or 10+2) examination or its equivalent from a recognized board.[5][4] There is no minimum or maximum age limit for registration or appearing in the CA Foundation Course, making it accessible to candidates at various life stages. Additionally, students from any academic stream—commerce, science, arts, or others—are eligible, provided they fulfill the Class 10th and 12th requirements, with no prior work experience necessary. Provisional registration is available for students currently appearing in their Class 12th examinations, allowing them to begin preparation early while regularizing their status upon passing.[23][5][4] Under the New Scheme effective from 2024 onward, the CA Foundation Course emphasizes building foundational knowledge in commerce and accountancy for all entrants, regardless of prior stream, to prepare them for subsequent levels. For registration, candidates must provide documentation for verification, including attested copies of Class 10th and Class 12th marksheets or admit cards as proof of date of birth and academic qualifications, along with recent passport-sized photographs.[9][24]Registration Procedure
The registration for the CA Foundation Course is conducted entirely online through the Institute of Chartered Accountants of India (ICAI)'s Self Service Portal (SSP) at eservices.icai.org. Prospective students must first create an account on the portal if they are new users, providing basic details such as email and mobile number for verification. Once logged in, they select the Foundation Course option under fresh registration, fill out the application form with personal information including name, date of birth, gender, and address as per their Class 10 certificate, and proceed to upload the required documents. After verifying the details, candidates make the payment of the registration fee via online modes like net banking, credit/debit card, or UPI, following which they receive a unique 10-digit registration number via email and SMS, confirming successful enrollment.[25][24][5] The registration fee for Indian students is ₹9,000, which includes the cost of the prospectus and study material dispatched to the registered address. For students residing overseas, the fee is US$700. There is no provision for late registration beyond the specified deadlines; candidates missing the cutoff cannot enroll for the immediate exam cycle and must wait for the next one. Concessions of 75% on the registration fee (reducing it to ₹2,250) are available for students from Jammu & Kashmir, Ladakh, and the 8 North-Eastern states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura), upon submission of a valid domicile or permanent resident certificate along with proof of identity such as Aadhaar, passport, or voter ID.[5][26] Registration deadlines are set four months prior to the examination month to allow sufficient preparation time. For the May 2025 examination, the last date was January 1, 2025; for the September 2025 examination, it was May 1, 2025; and for the January 2026 examination, it was September 1, 2025. Under the new scheme of education and training effective from 2024, the registration remains valid for four years from the date of the first eligible examination attempt, during which candidates can appear multiple times as per the triannual exam schedule (January, May, September), but revalidation is not permitted after expiry.[27][5][22] Required documents must be uploaded in prescribed formats (typically JPEG/PDF, with specific size limits) during the application process. These include a recent passport-size photograph (3.5 cm x 4.5 cm, white background), scanned signature, Class 10 marksheet or passing certificate (for date of birth and name verification), Class 12 marksheet or admit card (if already passed, though not mandatory for registration), proof of nationality (such as birth certificate or passport for non-Indian citizens). All details entered must match the supporting documents exactly, as no changes are allowed post-submission.[24][5][26] Upon successful registration and payment confirmation, students gain immediate access to the ICAI Board of Studies (BoS) Knowledge Portal at bosknowledgeportal.icai.org, where they can download digital study materials, e-lectures, mock tests, and revision resources tailored to the Foundation syllabus. Additionally, a welcome kit containing the printed prospectus and study material (if opted) is couriered to the provided address within 15-20 days, and enrollment confirmation is sent via email and SMS, enabling students to proceed with exam form submission once eligible.[28][5]Syllabus
Paper 1: Principles and Practice of Accounting
Paper 1: Principles and Practice of Accounting forms the cornerstone of the CA Foundation syllabus, introducing students to the fundamental principles and practical applications of accounting. This paper, worth 100 marks and conducted over a duration of 3 hours, emphasizes the development of skills in recording financial transactions, preparing financial statements, and applying accounting standards to real-world scenarios. The objective is to equip aspiring chartered accountants with a solid grasp of accounting as a language of business, fostering analytical abilities for problem-solving in financial reporting. Under the new scheme of education and training effective from 2024 onwards, the paper aligns with practical accounting needs.[9][29] The syllabus allocates approximately 5-10% weightage to theoretical content, with 90-95% focused on practical problems that test computational and interpretive skills. Learning objectives center on building proficiency in preparing accurate financial statements while understanding core accounting standards, ensuring students can handle sole proprietorship accounts effectively. The examination format consists of descriptive questions, requiring detailed workings and explanations.[30][29][31]Theoretical Framework (Chapter 1)
Chapter 1: Theoretical Framework introduces fundamental accounting concepts and lays the foundation for understanding the subject. This chapter emphasizes accounting as a tool for rational decision-making, governed by standardized principles and conventions.[32] 1. Meaning and Scope of AccountingAccounting is the systematic process of identifying, recording (in journals), classifying (in ledgers), summarizing (via trial balance, profit & loss account, balance sheet), analyzing, interpreting, and communicating financial transactions and events in monetary terms to aid decision-making. It is often called the "language of business." 2. Objectives of Accounting
- Systematic recording of transactions.
- Ascertaining financial results (profit/loss).
- Determining financial position (via balance sheet).
- Providing information to internal (e.g., management) and external users (e.g., investors, government).
Functions include measurement of past performance, forecasting, decision-making support, comparison/evaluation, control, and aiding government regulation/taxation. 4. Bookkeeping vs. Accounting
Bookkeeping involves only recording transactions; accounting includes summarizing, interpreting, and preparing financial statements. 5. Sub-Fields of Accounting
Sub-fields include financial accounting, management accounting, cost accounting, social responsibility accounting, and human resource accounting. 6. Users of Accounting Information
Users are internal (management, owners) and external (investors, lenders, suppliers, government, public). 7. Accounting Concepts, Principles, and Conventions
- Concepts: Business entity, money measurement, going concern, accrual basis, matching, dual aspect.
- Principles: Historical cost, revenue recognition, full disclosure.
- Conventions: Consistency, prudence (conservatism), materiality, full disclosure.
Limitations include ignoring non-monetary factors (e.g., employee morale), reliance on historical data, influence of personal judgments, failure to account for inflation, and exclusion of human resources valuation. 9. Role of Chartered Accountants
Chartered accountants perform auditing, taxation, financial advisory, management consultancy, and contribute to economic growth. The accounting process forms a core practical component, encompassing the double-entry system for recording transactions through journals, ledgers, trial balances, and subsidiary books. Students learn to post entries from source documents into journals, maintain ledger accounts for classification, and prepare trial balances to verify arithmetical accuracy. Subsidiary books, including cash books and purchase/sales day books, streamline the process for high-volume transactions. Error rectification techniques involve identifying and correcting errors like errors of omission or commission to ensure trial balance agreement. This section, weighted at 30-35%, emphasizes procedural accuracy and is essential for subsequent topics.[32][29] Bank reconciliation statements address discrepancies between cash book balances and bank statements, arising from timing differences, errors, or unrecorded items like cheques in transit. The process involves adjusting the cash book for bank charges or interest, and preparing a reconciliation to match passbook figures, promoting vigilance in cash management. Practical problems require step-by-step computations to compute adjusted balances, highlighting the importance of internal controls in accounting.[32] Inventoriation methods determine the cost of goods sold and closing stock valuation, with key approaches including First-In-First-Out (FIFO), Last-In-Last-Out (LIFO), and weighted average cost. Under FIFO, earliest costs are assigned to sales, reflecting current values for closing stock; LIFO assumes latest costs for sales, useful in inflationary environments but less common under Ind AS. The weighted average method smooths costs by averaging total inventory expenses. These methods, applied to perpetual or periodic systems, ensure consistent valuation aligned with accounting conventions. Questions integrate these with consignment accounts, where inventory is held on behalf of consignors, requiring del credere commissions and stock statements.[32][29] Depreciation accounting allocates the cost of tangible assets over their useful lives, with straight-line method (SLM) providing equal annual charges and written-down value (WDV) accelerating expenses in early years. The SLM formula is: For WDV, the formula is: \text{Depreciation} = \text{[Book Value](/page/Book_value) at beginning of year} \times \text{Rate of Depreciation} These methods, including additions, disposals, and changes in estimates, comply with Ind AS 16 on property, plant, and equipment. Practical exercises involve schedule preparation for multiple assets, underscoring asset management in financial statements.[32] Final accounts of sole proprietors culminate the syllabus, involving preparation of trading account, profit and loss account, and balance sheet from trial balance. The trading account computes gross profit by matching sales with cost of goods sold, adjusted for closing stock and direct expenses. The profit and loss account derives net profit after indirect expenses like salaries and depreciation. The balance sheet presents assets and liabilities in a classified format, adhering to the accounting equation. Adjustments for outstanding expenses, prepaid incomes, and provisions ensure true and fair representation, with 20-25% weightage emphasizing holistic financial analysis.[32][29]
Paper 2: Business Laws and Business Correspondence and Reporting
Paper 2 of the CA Foundation Course, titled Business Laws and Business Correspondence and Reporting, provides foundational knowledge in legal principles governing business operations and essential skills in professional communication and reporting. This paper is essential for students pursuing the Chartered Accountancy qualification, as it bridges legal compliance requirements with practical business documentation needs in accounting and corporate environments. The content is structured to foster an understanding of how laws influence business decisions and how effective correspondence supports professional interactions. Applicable under the New Scheme of Education and Training effective from July 1, 2023, the paper totals 100 marks and is assessed through a 3-hour subjective examination format, where students respond to descriptive questions and practical exercises.[1] The syllabus is divided into two main sections, with Section A (Business Laws) carrying 60 marks and Section B (Business Correspondence and Reporting) allocated 40 marks. This weightage reflects the emphasis on legal foundations while integrating communication proficiency, ensuring candidates can apply theoretical knowledge to real-world scenarios. The examination requires in-depth analysis, application of legal provisions, and demonstration of writing clarity, without the use of multiple-choice questions.[30] Section A covers core business laws integral to the Indian regulatory environment, focusing on statutes that regulate commercial activities. Key topics include the Indian Regulatory Framework under the Companies Act, 2013, particularly sections related to the incorporation of companies (Sections 3 to 22), which outline the process of forming a company, including memorandum and articles of association, and the prospectus (Sections 25 to 42), detailing requirements for issuing securities to the public to ensure transparency and investor protection. The Indian Contract Act, 1872, forms a significant portion, emphasizing elements such as offer and acceptance (Sections 2 to 9), consideration (Section 2(d)), and other essentials like capacity, free consent, and legality of object (Sections 10 to 30), enabling students to analyze contract validity and enforceability. Additional laws include the Sale of Goods Act, 1930, which governs contracts for the sale of goods, covering formation, conditions, warranties, transfer of ownership, and rights of unpaid sellers (Sections 4 to 26 and 45 to 50). The Indian Partnership Act, 1932, addresses partnership formation, rights and duties of partners, registration, and dissolution (Sections 4 to 55), highlighting differences from corporate structures. These topics aim to build competence in identifying legal risks in business transactions. Based on historical exam patterns, approximate weightages for these key topics in Section A are as follows: Indian Contract Act (15–20 marks), Sale of Goods Act (10–15 marks), Indian Partnership Act (8–15 marks), and Companies Act (8–12 marks).[33][34][35] Section B shifts to practical communication skills, preparing students for professional documentation in business settings. It encompasses business correspondence techniques such as note-making and précis writing, which involve summarizing information concisely from passages or reports; resume writing, focusing on structuring professional profiles for job applications; and e-communication, including emails, memos, and digital etiquette to ensure clarity and professionalism in virtual interactions. Reporting components cover drafting articles on business topics, formal letters for official communications like complaints or inquiries, and structured reports analyzing business issues. These elements stress precision, audience awareness, and adherence to standard formats to facilitate effective information exchange in corporate roles.[33] Common preparation strategies for Paper 2 emphasize studying bare acts for Business Laws, practicing case studies to apply legal provisions, and regular practice in drafting business correspondence and reports. Effective approaches include memorizing sections logically, creating summary notes such as flowcharts for each act, and structuring answers with clear components like facts, relevant sections, analysis, and conclusion, while accurately quoting sections and prioritizing presentation.[34][35][36] The learning objectives of Paper 2 are to cultivate a robust understanding of legal compliance in business operations and proficiency in professional writing, enabling future accountants to navigate regulatory landscapes and communicate reports accurately in advisory or compliance functions.[31]Paper 3: Business Mathematics, Logical Reasoning, and Statistics
Paper 3 of the CA Foundation Course evaluates candidates' proficiency in quantitative techniques, logical thinking, and statistical methods crucial for business analysis and decision-making in the accounting profession. Under the New Scheme of Education and Training introduced by the Institute of Chartered Accountants of India (ICAI) effective from July 1, 2023, this paper is designated as Quantitative Aptitude but encompasses Business Mathematics, Logical Reasoning, and Statistics.[9][37] The examination format is entirely objective, comprising 100 multiple-choice questions worth 100 marks to be attempted in 2 hours, fostering quick analytical responses without negative marking.[30] The paper's structure allocates 40 marks to Business Mathematics, 20 marks to Logical Reasoning, and 40 marks to Statistics, emphasizing practical applications in financial and commercial contexts.[30] This distribution reflects ICAI's aim to equip aspiring chartered accountants with tools for handling numerical data, deducing logical conclusions, and interpreting statistical trends in real-world business scenarios. The syllabus remains aligned with the New Scheme.[38][37] The learning objectives focus on building problem-solving skills to support evidence-based business decisions, including the ability to apply mathematical models to financial planning and use statistical tools for risk assessment.[9] Candidates are expected to demonstrate conceptual understanding through scenario-based questions, preparing them for advanced stages of the CA curriculum.Business Mathematics Syllabus
The Business Mathematics component introduces foundational quantitative tools used in commerce, covering ratios and proportions for comparing business quantities, indices and logarithms for growth calculations, and equations including matrices for solving systems of linear relations in accounting models. Linear inequalities are explored to model constraints in budgeting and resource allocation. A key area is the time value of money, which quantifies the present and future values of cash flows using compound interest principles; for instance, the future value formula is given bywhere is the future value, is the present value, is the interest rate per period, and is the number of periods, while the present value is
[37] Permutations and combinations address counting principles for business permutations like inventory arrangements, sequences and series (arithmetic and geometric progressions) model progressive financial series such as loan repayments, and sets, functions, and relations provide basics for data categorization. Basic concepts of differential and integral calculus introduce rates of change relevant to marginal analysis in economics, though without advanced derivations.[37]
Logical Reasoning Syllabus
Logical Reasoning sharpens deductive and inductive skills for business problem-solving, starting with number series, coding-decoding, and odd man out to identify patterns and anomalies in data sets like financial sequences. Direction tests evaluate spatial reasoning for logistics scenarios, while seating arrangements simulate puzzle-solving in team formations or resource placement. Blood relations problems test relational logic akin to organizational hierarchies, and syllogism involves drawing conclusions from premises, mirroring legal and contractual interpretations in business.[37] These topics, weighted at 20 marks, promote critical thinking to detect inconsistencies in reports or arguments.[30]Statistics Syllabus
The Statistics section equips candidates with descriptive and inferential tools for data-driven decisions, beginning with statistical description of data through tabulation and graphical representation. Measures of central tendency (mean, median, mode) summarize data distributions, while dispersion measures quantify variability; variance is calculated aswhere are individual values, is the mean, and is the number of observations, with standard deviation as its square root:
[37] Probability concepts cover basic rules and events for risk evaluation in investments, theoretical distributions (binomial, Poisson) model discrete outcomes like sales forecasts, and correlation and regression analyze relationships between variables; the correlation coefficient is
where Cov is covariance and denotes standard deviations. Index numbers track changes in economic indicators, and time series analyze trends for forecasting business performance.[37] Allocated 40 marks, this part stresses application to commercial data interpretation.[30]
Paper 4: Business Economics and Business and Commercial Knowledge
Paper 4 of the CA Foundation examination, under the new scheme of education and training introduced by the Institute of Chartered Accountants of India (ICAI), assesses candidates' grasp of fundamental economic principles and contemporary business awareness essential for aspiring chartered accountants.[31] The paper totals 100 marks and is conducted over 2 hours in an objective format consisting of multiple-choice questions (MCQs).[31] It is divided into two sections: Section A (Business Economics, 60 marks) and Section B (Business and Commercial Knowledge, 40 marks), designed to foster understanding of economic environments and commercial operations relevant to professional decision-making in accounting and finance.[7] The learning objectives emphasize applying microeconomic theories to business scenarios and building awareness of organizational structures, policies, and global trends to support ethical and informed practices in commerce.[31] Section A: Business Economics introduces core microeconomic concepts tailored to business applications, covering the nature of economics, demand and supply dynamics, production and cost analysis, market structures, and business cycles. The section begins with the nature and scope of business economics, which explores economics as the study of resource allocation amid scarcity, addressing basic economic problems such as what to produce, how to produce, and for whom to produce, often illustrated through the production possibility curve.[39] It distinguishes business economics as the integration of economic theory with managerial decision-making.[40] The theory of demand and supply forms a pivotal part, detailing the law of demand—where quantity demanded inversely relates to price—and supply, where quantity supplied directly relates to price. Elasticity is a key measure here, defined as the responsiveness of quantity to changes in determinants; for price elasticity of demand, it is calculated as: where is the percentage change in quantity demanded and is the percentage change in price, helping businesses forecast revenue impacts from price adjustments.[39] Income and cross elasticities are also covered to analyze consumer behavior under varying economic conditions.[41] Theory of production and cost examines production functions, which relate inputs to outputs, including the law of variable proportions (diminishing marginal returns) and returns to scale (constant, increasing, or decreasing). Cost concepts are integral, distinguishing fixed costs (unchanged with output, e.g., rent), variable costs (varying with output, e.g., labor), average costs, and marginal costs, enabling firms to optimize resource use and pricing strategies.[39] Market structures and price determination classify markets into perfect competition (many buyers/sellers, homogeneous products, price takers), monopoly (single seller, barriers to entry, pricing above marginal cost for profit maximization), monopolistic competition (differentiated products, some pricing power), and oligopoly (few sellers, interdependent pricing). These models illustrate how firms set prices and outputs under varying competitive pressures.[39] The section concludes with business cycles, outlining phases like expansion, peak, contraction, and trough, along with theories such as Keynesian and monetary approaches to economic fluctuations.[7] The syllabus includes theories of international trade (e.g., comparative advantage), trade policies, exchange rates, and their effects on business operations.[42] Section B: Business and Commercial Knowledge shifts focus to practical business awareness, encompassing organizational forms, policy frameworks, and emerging trends to equip candidates with insights into the commercial landscape. It starts with an introduction to business and commercial knowledge, highlighting the interplay of economic, social, technological, and political factors shaping enterprises.[31] Business environment delves into elements like the digital economy (e-commerce, fintech, digital payments) and ESG factors—environmental sustainability (e.g., carbon footprint reduction), social responsibility (e.g., diversity initiatives), and governance (e.g., ethical compliance)—which influence corporate strategies amid global sustainability demands.[41] Business organizations cover structures such as sole proprietorships (simple, unlimited liability), partnerships (shared ownership, joint liability), companies (limited liability, perpetual succession), and limited liability partnerships (LLPs), noting their suitability for different scales and risks.[31] Government policies for business growth address industrial policies, fiscal measures (taxation, subsidies), and monetary policies (interest rates, liquidity), alongside reforms promoting ease of doing business.[7] Organizations facilitating business include entities like stock exchanges (for capital raising), chambers of commerce (advocacy), and regulatory bodies (e.g., SEBI for securities). The syllabus integrates sustainable business practices, emphasizing eco-friendly operations and ethical governance as post-2023 priorities.[40] Finally, common business terminologies explain key concepts such as IPO (initial public offering for equity listing), FDI (foreign direct investment for capital inflows), venture capital (funding for startups), mergers and acquisitions (corporate restructuring), and basics like profit, turnover, and equity, providing foundational vocabulary for commercial transactions.[31] These elements ensure candidates appreciate the broader commercial ecosystem without delving into legal forms detailed elsewhere.[31]Examination
Exam Pattern and Format
The CA Foundation examination under the New Scheme of Education and Training, implemented by the Institute of Chartered Accountants of India (ICAI), comprises four papers totaling 400 marks, with each paper allocated 100 marks. This structure aims to assess foundational knowledge in accounting, law, quantitative skills, and economics, emphasizing practical application and conceptual understanding rather than rote memorization.[5][9] Papers 1 (Principles and Practice of Accounting) and 2 (Business Laws and Business Correspondence and Reporting) are subjective, featuring descriptive questions, essay-type responses, and case-based scenarios that require detailed explanations and analysis. Paper 1 includes practical problems accounting for 60% of the content (60 marks) to test problem-solving skills in real-world scenarios, while the remaining 40% (40 marks) covers theoretical aspects. Paper 2 is predominantly theory-oriented (80 marks), with 20 marks on practical application through case studies, focusing on legal provisions and communication. In contrast, Papers 3 (Quantitative Aptitude) and 4 (Business Economics) are objective, consisting of 100 multiple-choice questions (MCQs) each, with four options per question to evaluate quick analytical abilities.[5][43][44][45] The duration for Papers 1 and 2 is three hours each, allowing sufficient time for in-depth written responses, whereas Papers 3 and 4 are limited to two hours each to suit the MCQ format. Negative marking applies only to the objective papers, deducting 0.25 marks for each incorrect answer, with no penalty for unanswered questions to encourage thoughtful attempts. The examination is conducted in pen-and-paper mode, typically in two shifts if necessary to accommodate the volume of candidates, and uses OMR sheets for Papers 3 and 4 to facilitate automated evaluation.[44][46][5] Candidates may attempt the exam in English or Hindi as the medium of instruction, except for the Business Correspondence and Reporting section in Paper 2, which is exclusively in English to ensure proficiency in professional communication. Non-programmable calculators are permitted across all papers to aid computations, particularly in Papers 1, 3, and 4, underscoring the focus on applied skills. For the 2025 examinations, the format remains unchanged under the New Scheme, continuing to prioritize application-based learning aligned with international standards.[44][46][9]| Paper | Subject | Type | Marks | Duration | Key Features |
|---|---|---|---|---|---|
| 1 | Principles and Practice of Accounting | Subjective | 100 | 3 hours | 60% practical problems (60 marks); 40% theoretical; descriptive and case-based |
| 2 | Business Laws and Business Correspondence and Reporting | Subjective | 100 | 3 hours | 80% theory (80 marks); 20% practical application; English for communication section |
| 3 | Quantitative Aptitude | Objective (MCQs) | 100 | 2 hours | 100 questions; negative marking (0.25 per wrong answer) |
| 4 | Business Economics | Objective (MCQs) | 100 | 2 hours | 100 questions; negative marking (0.25 per wrong answer) |
Exam Schedule
Under the New Scheme of Education and Training implemented by the Institute of Chartered Accountants of India (ICAI) effective from 2024, the CA Foundation examination is conducted three times annually to provide greater flexibility to candidates: in January, May, and September.[9] This increase from the previous biannual cycle (May and November) allows students to attempt the exam more frequently while aligning with the four-month study period post-registration.[9] The examinations span four consecutive days, with one paper per day, typically scheduled on Tuesdays, Thursdays, and Saturdays to avoid conflicts with other major exams. For instance, in 2025:| Session | Paper 1 Date | Paper 2 Date | Paper 3 Date | Paper 4 Date |
|---|---|---|---|---|
| January | 12 Jan | 16 Jan | 18 Jan | 20 Jan |
| May | 15 May | 17 May | 19 May | 21 May |
| September | 16 Sep | 18 Sep | 20 Sep | 22 Sep |