CA Foundation

A Foundation is a part of the revised scheme introduced by the ICAI. CA Foundation is an entry-level test designed for students who want to pursue the CA Course. Exams for the CA Foundation will conduct twice in a year in May and November. CA Foundation is replacing the current entry-level test CPC (Common Proficiency Course).  A student after appearing in 12th examination can register for the CA Foundation course.

Course Duration

12 months

Course Description

Exams for the CA Foundation will conduct twice in a year i.e. MAY and November. A student can register in this course after appearing in 12th examination constituted by the law or recognized by the Central Government and appear in the Foundation examination after passing 12th Examination.

PAPER – 1 : PRINCIPLES AND PRACTICE OF ACCOUNTING
(One paper – Three hours – 100 Marks)
Objective:
To develop an understanding of the basic concepts and principles of Accounting and acquire
the ability to apply the same in preparing financial statements and simple problem solving.
Contents:
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) Average due Date
Meaning, Calculation of average due date in various situations.
(v) 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.

PAPER – 2 : BUSINESS LAWS AND BUSINESS CORRESPONDENCE
AND REPORTING

(One paper – Three hours – 100 Marks)
SECTION A : BUSINESS LAWS (60 MARKS)
Objective:
To develop an understanding of significant provisions of select business laws and acquire the
ability to address basic application-oriented issues.
Contents
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 legislation are enacted in place of the existing legislation, the syllabus would
include the corresponding provisions of such new legislation with effect from dates
notified by the Institute.

SECTION B : BUSINESS CORRESPONDENCE AND REPORTING (MARKS 40)
Objective:

To acquire and develop good communication skills requisite for business correspondence and
reporting.