ca foundation syllabus

Get Updated and Detailed ICAI CA Foundation Syllabus for May 2022

CA Foundation is the entry-level exam for the Chartered Accountancy. After this, you need to attend three more stages to become a CA. In this exam, ICAI includes a limited syllabus to test the candidates. The students who can solve the question from the given pattern are only allowed to move to the next stage. ICAI also decides the CA Foundation syllabus, and the same body also makes any required changes. And the one who wants a good CA Foundation Result should, first of all, be friendly to the syllabus and then jump in the preparation. So, let us briefly discuss the CA Foundation syllabus for May 2022.

CA Foundation Syllabus

There are altogether four subjects in CA Foundation Exam, which we also call four papers,

  • Principles and Practice of Accounting
  • Business Law and Business Correspondence and Reporting
  • Mathematics of Business and Logical Reasoning & Statistics
  • Business Economics and Business and Commercial Knowledge

Paper 1:  Principles and Practices of Accounting Syllabus

This subject has been divided into ten chapters in which each of the chapters deals with specific aspects of accounting. This subject is designed to test the basic concept of students in accounting. It is a total of 100 marks.

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.
  • Policies of Accounting
  • Accounting as a Measurement Discipline- Valuation Principles and Accounting Estimates.
  • Accounting Standards- Concepts and objectives.
  • Indian Accounting Standards(IND AS)

Accounting Process

  • Books of Accounts
  • Preparation of Trial Balance
  • Rectification of Errors

Bank Reconciliation Statements

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

Concept and accounting of Depreciation

Accounting for Special Transactions

  • Bill of Exchange and Promissory Notes: Meaning and its treatment in the Accounts
  • Sale of Goods on approval or return basis:  Meaning and its accounting treatment.
  • 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.
  • Average due date: Meaning and its calculation in various situations.
  • 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 Sheets 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 Non-Profit Organisations

Introduction to Company Accounts

  • Definition of shares and debentures
  • The 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.
  • Basic Accounting Ratios (Profitability, Solvency, Liquidity, and Turnover)

Paper 2: Business Laws and Business Correspondence and Reporting

This paper is divided into sections where section A is 60 marks and section B is 40 marks. The two split potions are known as Business Laws and Business Correspondence.

Section A – Business Laws Syllabus (60 Marks)

  • Indian Contract Act, 1872
  • The Sales of Goods Act,1930
  • The Indian Partnership Act, 1932
  • The Limited Liability Partnership Act, 2008
  • The Companies Act, 2013

Section B -Business Correspondence and Reporting Syllabus (40 Marks)

  • Communication
  • Sentence Types (Direct-Indirect, Active-Passive Speech)
  • Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes, Phrasal verbs, Collocations & Idioms
  • Comprehension Passages
  • Note Making

Introduction to Basic Writing

  • Precis Writing
  • Article Writing
  • Report Writing
  • Writing Formal Letters
  • Writing Formal Mails
  • Resume Writing
  • Meetings

Paper 3: Business Mathematics, Logical Reasoning, and Statistics

This paper is also divided into parts, i.e., Part-A, Part-B, and Part-C, which carry 40 marks, 20 marks, and 40 marks, respectively.

Part A: Business Mathematics Syllabus (40 Marks)

Check CA Foundation Business Mathematics Syllabus 2022 Examination.

  • Ratio and Proportion, Indices and Logarithms
  • Equations and Matrices
  • Linear Inequalities with Objective Functions and Optimization w.r.t. objective function.
  • Time value of Money
  • Permutations and Combinations
  • Sequence and Series
  • Sets, Relations, and Functions
  • Basic applications of Differential and Integral calculus

Part B: Logical Reasoning Syllabus (20 Marks)

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

Part C: Statistics Syllabus (40 Marks)

  • The statistical description of Data:- Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart.
  • Measures of Central tendency and Dispersion:- Measures of Central Tendency and Dispersion: Mean, Median, Mode, Mean Deviation, Quartiles, and Quartile Deviation, Standard Deviation, Coefficient of Variation, Coefficient of Quartile Deviation.
  • Probability:- Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.
  • Theoretical Distributions:- Theoretical Distributions: Binomial Distribution, Poisson distribution – Basic application, and Normal Distribution – Basic applications.
  • Correlation and Regression:- Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Probable Error and Probable limits. Regression lines, Regression equations, Regression coefficients.
  • Index Numbers and Time Series:-
    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

This subject is also divided into two parts with 60 marks and the other 40 marks.

Part I – Business Economics Syllabus (60 Marks)

  • 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 behaviour – 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)

  • Business and Commercial Knowledge
  • Environment Business
  • Business Organizations
  • Government Policies for Business Growth
  • Organizations Facilitating Busines
  1. Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI
  2. Indian Development Banks – NABARD

Tips For Students

  • First of all, Download the syllabus and understand the section-wise weightage.
  • Make a proper timetable and goals for each month and stick to them.
  • Clear all your doubts and queries with your teachers.
  • Attempt as many mock tests as you can for better practice and revisions.
  • Frequently revise the topics of each subject to sustain the learning.
  • Make a proper plan to cover all the essential topics from all the subjects.

Therefore, the syllabus is essential to understand the demand of the CA Foundation Exam. One must understand the syllabus before starting the preparation. So, download the CA Foundation syllabus 2022, read it thoroughly, understand the section-wise weightage and start your practice accordingly.

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