The CA Foundation course, administered by the Institute of Chartered Accountants of India (ICAI), serves as the gateway to the prestigious Chartered Accountancy profession. Under the new scheme effective from 2023 (applicable for 2025-2026 exams), the syllabus has been streamlined to four papers, removing Business Correspondence & Reporting and Business & Commercial Knowledge while emphasizing practical application, MCQs, and conceptual clarity. With exams held thrice yearly (January, May/June, September), the 2025-2026 cycle focuses on building foundational skills in accounting, law, aptitude, and economics. Each paper is 100 marks (total 400), with Papers 1 & 2 subjective and Papers 3 & 4 objective (negative marking of 0.25 for wrong MCQs in 3 & 4). Passing requires 40% per paper and 50% aggregate.
This deep dive breaks down the syllabus subject-wise, highlighting key topics, weightage, and tips for success.
Paper 1: Accounting (100 Marks, Subjective)
Formerly "Principles and Practice of Accounting," this core paper lays the groundwork for financial recording and reporting.
Key Sections and Topics:
Theoretical Framework: Meaning, scope, objectives of accounting; accounting concepts, principles, conventions; capital vs. revenue.
Accounting Process: Books of accounts, journal, ledger, trial balance, rectification of errors.
Bank Reconciliation Statement, Inventories, Depreciation & Amortization.
Bills of Exchange and Promissory Notes.
Preparation of Final Accounts: Sole proprietors, partnerships, companies (basic Ind AS introduction).
Partnership and LLP Accounts: Admission, retirement, dissolution.
Not-for-Profit Organizations.
Approximate Weightage: Final accounts and partnership (30-40 marks), process & theory (20-30), special topics (20-30).
Exam Tips: Practice journal entries and final accounts daily. Focus on practical problems; understand Ind AS basics for company accounts. Use Kisalay Commerce Classes modules for illustrations.
Paper 2: Business Laws (100 Marks, Subjective)
This paper covers legal frameworks governing business.
Key Sections and Topics:
Indian Regulatory Framework: Major acts overview.
Indian Contract Act, 1872: Nature, offer/acceptance, consideration, capacity, free consent, legality, performance, breach.
Sale of Goods Act, 1930: Formation, conditions/warranties, transfer of ownership, unpaid seller.
Indian Partnership Act, 1932: Nature, registration, relations, dissolution.
Limited Liability Partnership Act, 2008.
Companies Act, 2013: Nature, types, incorporation, prospectus, share capital, meetings.
Negotiable Instruments Act, 1881 (basic).
Approximate Weightage: Contract Act (30-40 marks), Companies Act (20-30), Sale of Goods/Partnership (20-30).
Exam Tips: Memorize sections with cases; practice descriptive answers. New additions like BRSR (Business Responsibility & Sustainability Reporting) focus on ethics.
Paper 3: Quantitative Aptitude (100 Marks, Objective – 45% MCQs)
Divided into Maths, Logical Reasoning, and Statistics – tests analytical skills.
Key Sections and Topics:
Ratio/Proportion, Indices, Logarithms; Equations (linear/quadratic); Inequalities.
Time Value of Money, Permutations/Combinations, Sequences/Series.
Logical Reasoning: Number/letter series, coding/decoding, blood relations, seating.
Statistics: Measures of central tendency/dispersion, probability, correlation/regression, index numbers, sampling.
Approximate Weightage: Statistics (40-50 marks), Maths (30-40), Reasoning (15-20). Some deletions like Matrices.
Exam Tips: Master calculator shortcuts; practice 50 MCQs daily. Focus on data interpretation for higher scores.
Paper 4: Business Economics (100 Marks, Objective – 40% MCQs)
Applies economic principles to business decisions.
Key Sections and Topics:
Introduction to Microeconomics: Nature, demand/supply, elasticity.
Theory of Production and Cost; Price Determination in Markets.
Business Cycles.
Macro Concepts: National income, money/banking, fiscal/monetary policy.
Indian Economy: Overview, liberalization, globalization; current developments.
Approximate Weightage: Microeconomics (40-50 marks), Indian Economy/Macro (30-40), Business Cycles (10-20).
Exam Tips: Link theory to real-world (e.g., inflation impacts); revise graphs and current affairs.
Preparation Essentials for 2025-2026
Resources: ICAI study material (free on bosknowledgeportal.icai.org), RTPs/MTPs, mock tests.
Strategy: 4-6 months prep; daily practice MCQs (negative marking in Papers 3-4); revise theory for subjective papers.
Changes: Streamlined for relevance; more MCQs test application.
With disciplined study, this syllabus builds a strong base for Intermediate. Download official PDFs from ICAI and start today—your CA Foundation journey begins here!
