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CA Foundation Syllabus 2024 – A Comprehensive Guide to ICAI’s New Scheme and Subjects

15 Mar

Introduction

Becoming a Chartered Accountant (CA) is a dream for many aspiring professionals in India. The journey towards this prestigious qualification begins with the CA Foundation exam, a gateway to a promising career in accountancy. The Institute of Chartered Accountants of India (ICAI) continually updates its syllabus to ensure that aspiring CAs are equipped with the most relevant knowledge and skills. Let us see more into the intricacies of the CA Foundation Syllabus 2024 under ICAI’s new scheme, highlighting key subjects and offering effective preparation strategies.

CA Foundation Syllabus 2024

The Institute of Chartered Accountants of India (ICAI) has unveiled the much-anticipated CA Foundation Syllabus 2024, marking a significant milestone in the journey of aspiring chartered accountants. This updated syllabus is meticulously designed to provide candidates with a comprehensive understanding of fundamental concepts crucial for a thriving career in chartered accountancy. With the industry landscape evolving rapidly, the syllabus aims to equip candidates with the requisite knowledge and skills to meet the demands of the dynamic professional environment. Let’s embark on a journey to explore the key subjects covered in the CA Foundation Syllabus 2024 and understand how it paves the way for success.

Accounting
Topics Sub Topics
Theoretical Framework
  • Meaning and Scope of Accounting.
  • Accounting concepts, principles, and conventions.
  • Capital and revenue expenditure, capital and revenue receipts, contingent assets, and contingent liabilities.
  • Accounting Policies.
  • Accounting as a measurement discipline – valuation principles, accounting estimates. Accounting Standards-concepts and objectives.
Accounting Process
  • Recording accounting transactions: principles of double entry book-keeping, books of original entry-journal, subsidiary books, cash book, ledger-format, posting from journals and subsidiary books, balancing accounts.
  • Preparation of Trial Balance.
  • Rectification Of Errors
Bank Reconciliation Statement Introduction, reasons, and preparation of bank reconciliation statement
Inventories Meaning, basis, and technique of inventory valuation, cost of inventory, net realizable value and record system
Depreciation and Amortisation Tangible and intangible assets- meaning & difference, concepts, methods of computation and accounting treatment of depreciation/amortization, change in depreciation method
Bills of Exchange and Promissory Notes Meaning of bills of exchange, promissory notes, and their accounting treatment; accommodation bills.
Preparation of 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
Financial Statements of Not-for-Profit Organizations Significance and preparation of receipt and payment account, income and expenditure account and balance sheet, difference between profit and loss account, and income and expenditure account
Accounts from Incomplete Records (excluding preparation of accounts based on ratios). –
Partnership And LLP Accounts
  • Final accounts of partnership firms and LLP.
  • Admission, retirement, and death of a partner, including treatment of goodwill.
  • Dissolution of partnership firms and LLPs, including piecemeal distribution of assets
Company Accounts
  • Definition Of Shares And Debentures.
  • Issue Shares And Debentures, forfeiture of shares, reissue of forfeited shares.
  • Redemption of preference shares and debentures (excluding purchase and redemption of own debentures sinking fund method).
  • Accounting For Bonus Issue And Right Issue.

Business Laws
Topics Sub Topics
Indian Regulatory Framework Major Regulatory Bodies include the Ministry of Finance, Ministry of Corporate Affairs, SEBI, RBI, IBBI, Ministry of Law and Justice, etc.
The Indian Contract Act, 1872 General Nature Of Contract, Consideration, Other essential elements of a valid contract, Performance Contract, Breach Of Contract, Contingent and Quasi Contract, Contract of Indemnity and Guarantee, Contract of Bailment and Pledge, Contract of Agency
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.
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 company, Corporate veil theory, Classes of companies, Types of share capital, Incorporation of company, Memorandum of Association, Articles of Association, Doctrine of Indoor Management
The Negotiable Instruments Act, 1881 Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, Different provisions relating to Negotiation, Presentment of Instruments, Rules of Compensation

Quantitative Aptitude
Topics Sub Topics
Part A: Business Mathematics
Ratio and proportion, Indices and Logarithms Ratio and proportion and Time and work-related problems, Laws of Indices, Exponents and Logarithms and Antilogarithms
Equations Linear Equations Up to Three Variables, Quadratic and Cubic equations in one variable. Applications in Business Related Problems.
Linear Inequalities Linear Inequalities in one and two variables and the solution space
Mathematics of Finance
  1. Simple Interest
  2. Compound Interest
  3. Nominal and Effective Rate of Interest
  4. Present Value
  5. Net Present Value
  6. Future Value
  7. Perpetuity
  8. Annuities
  9. Sinking Funds
  10. Calculating EMI
  11. Calculations of Returns: Nominal and Effective Rate of Return
  12. Compound Annual Growth Rate(CAGR)
Permutations and Combinations Basic concepts of Permutations and combinations: Introduction, the 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 terms of special series and Business Applications
Sets, Relations, and Functions. Basics of Limits and Continuity Functions
Basic applications of Differential and Integral calculus in Business and Economics (Excluding the trigonometric applications)
Part B: Logical Reasoning Number series coding and Decoding and the odd man out, Direction Tests, Seating Arrangements, Blood Relations
Part C: Statistics
Statistical Representation of Data Diagrammatic representation of data, Frequency Distribution, Graphical representation of Frequency Distribution–Histogram, Frequency Polygon, Ogive, Pie-chart
Sampling Basic principles of sampling theory, comparison between sample survey and complete enumeration, some important terms associated with sampling type of sampling, sampling and non-sampling errors.
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 Independent and dependent events are mutually exclusive events. Total and Compound Probability and Bayes Theorem
Theoretical Distributions Random variables, Discrete and Continuous Random variables, Expectation of a discrete random variable, Theoretical Distributions: Binomial Distribution, Poisson distribution–basic application and Normal Distribution–basic applications
Correlation and Regression Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, Regression coefficients
Index Numbers

Business Economics
Topics Sub Topics
Introduction to Business Economics
  • Meaning and scope of Business Economics.
  • Basic Problems of an Economy and the Role of Price Mechanism
Theory of Demand and Supply
  • Meaning and Determinants of Demand, Law of Demand and Elasticity of Demand – Price, Income and Cross Elasticity.
  • Theory of Consumer’s Behaviour –Indifference Curve approach.
  • Meaning and Determinants of Supply, Law of Supply and Elasticity of Supply, Market Equilibrium and Social Efficiency.
Theory of Production and Cost
  • Meaning and Factors of Production, Short Run and Long Run.
  • Law of Production–The Law of Variable Proportions and Laws of Returns to Scale, Producer’s Equilibrium.
  • Concepts of Costs – Short-run and long-run costs, Average and Marginal Costs, Total, Fixed and variable Costs.
Price Determination in Different Markets
  • Market Structures: Perfect Competition, Monopoly and Monopolistic Competition. Using Game Theory to Study Oligopoly.
  • Price Determination in these Markets.
  • Price- Output Determination under different Market Forms.
Determination of National Income
  • Macro Economic Aggregates and Measurement of National Income.
  • Determination of National Income: Keynes’ Two Sector Basic Model, Three Sectors and Four Sectors Models.
Business Cycles       Meaning, Phases, Features, Causes behind these Cycles
Public Finance
  • Fiscal functions: An Overview, Centre and State Finance.
  • Market Failure/Government Intervention To Correct Market Failure.
  • Process of budget making: Sources of Revenue, Expenditure Management, and Management of Public Debt.
  • Fiscal Policy
Money Market
  • Concept of Money Demand
  • Important Theories of Demand for Money
  • Concept of Money Supply, Cryptocurrency Another New Terminology
  • Monetary Policy
International Trade
  • Theories of International Trade including theories of intra-industry trade Krugman.
  • Trade Policy–The Instruments of Trade Policy.
  • Trade negotiations.
  • Exchange Rates and its economic effects.
  • International Capital Movements: Foreign Direct Investment
Indian Economy
  • Before 1950- Chanakya and Nand Vansh
  • OECDPaper (1950-1991),
  • Basic knowledge 1991 Onwards

Key Subjects Covered

Subject Marks Type of Questions
Accounting 100 Subjective
Business Laws 100 Subjective
Quantitative Aptitude 100 Objective
Business Economics 100 Objective

Preparation Strategies

To excel in the CA Foundation Exam 2024, consider the following strategies:

  1. Structured Study Plan: Create a detailed study schedule allocating sufficient time for each subject.
  2. Regular Practice: Solve mock tests, previous years’ question papers, and practice questions regularly to enhance understanding and speed.
  3. Seek Guidance: Don’t hesitate to seek guidance from mentors, teachers, or seniors who have cleared the CA Foundation exams.
  4. Time Management: Develop effective time management strategies to allocate adequate time for each question during the exam.
  5. Maintain Balance: Maintain a healthy balance between study sessions, relaxation, physical activity, and sleep to optimize focus and performance

Criteria to Pass the 2024 CA Foundation Exam

To successfully clear the CA Foundation Exam 2024, candidates must meet the following criteria:

  • Score a minimum of 40% in each paper.
  • Attain a total score of at least 50% across all papers combined.

It’s important to note the marking scheme for each paper, as subjective and objective questions are treated differently.

Conclusion

Starting the journey to become a Chartered Accountant requires dedication, perseverance, and strategic planning. Understanding the CA Foundation Syllabus 2024 and implementing effective preparation strategies are crucial steps toward achieving success in the exam. By adhering to the outlined criteria and adopting a proactive approach to study, aspiring CAs can embark on a promising career path in chartered accountancy.
Thorough preparation, coupled with a clear understanding of the syllabus and examination format, is key to conquering the CA Foundation Exam 2024 and realizing your aspirations in the field of chartered accountancy.

FAQs

1. What are the key changes introduced in the CA Foundation Syllabus 2024?

  • The syllabus is updated to meet industry demands and regulatory frameworks.

2. How does the CA Foundation Syllabus 2024 prepare candidates for the professional landscape?

  • It equips candidates with comprehensive knowledge essential for navigating professional challenges confidently.

3. What resources support candidates in preparing for the CA Foundation Exam?

  • Candidates can access study materials, online tutorials, mock tests, previous years’ papers, and mentor guidance.

4. What is the exam format for the CA Foundation Exam 2024?

  • The exam comprises four papers with subjective and objective questions evaluating candidates’ understanding and analytical skills.

5. What are the passing criteria for the CA Foundation Exam 2024?

  • Candidates need a minimum of 40% in each paper and a total of 50% across all papers, with negative marking in Papers 3 and 4.
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