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The CA Foundation syllabus under the ICAI New Scheme of Education and Training is structured across four papers covering accounting, business law, mathematics and statistics, and economics. Understanding every chapter in each paper is the starting point for any meaningful preparation plan. This page provides the complete, chapter-level syllabus for all four papers as prescribed by ICAI, along with preparation guidance and topic-level insights.
For the complete CA Foundation exam overview, visit the CA Foundation main page.
| Topic Link | |
| CA Foundation Overview | CA Foundation Exam Guide |
| Eligibility Criteria | CA Foundation Eligibility Criteria |
| Exam Pattern | CA Foundation Exam Info |
| Previous Year Papers | CA Foundation PYQ |
| Syllabus Tracker | CA Foundation Syllabus Tracker |
| Exam Analysis | CA Foundation Exam Analysis |
| Paper Name Type Marks Duration | ||||
| Paper 1 | Principles and Practice of Accounting | Subjective | 100 | 3 hours |
| Paper 2 | Business Laws | Subjective | 100 | 3 hours |
| Paper 3 | Quantitative Aptitude | Objective (MCQ) | 100 | 2 hours |
| Paper 4 | Business Economics | Objective (MCQ) | 100 | 2 hours |
Track your completion of each chapter using the CA Foundation Syllabus Tracker.
Paper 1 is the most foundational paper of the CA Foundation. It covers basic to intermediate financial accounting concepts and tests the ability to prepare financial statements, pass journal entries, and apply accounting principles to practical scenarios.
| Chapter Topic | |
| 1 | Theoretical Framework: Meaning and scope of accounting, accounting concepts and conventions, accounting standards (overview), double entry system |
| 2 | Accounting Process: Books of accounts, journal, ledger, trial balance, subsidiary books including cash book, petty cash book, purchase and sales books |
| 3 | Bank Reconciliation Statement: Causes of disagreement between bank book balance and passbook balance, preparation of BRS |
| 4 | Inventories: Valuation of inventories, FIFO and Weighted Average methods, effect of inventory errors on financial statements |
| 5 | Concept and Accounting of Depreciation: Straight line method, written down value method, change of method, treatment in accounts |
| 6 | Accounting for Special Transactions: Bills of exchange and promissory notes, accommodation bills, consignment accounts, joint venture accounts |
| 7 | Rectification of Errors: Types of errors, preparation of suspense account, effect on profit |
| 8 | Preparation of Final Accounts of Sole Proprietorship: Trading account, profit and loss account, balance sheet with adjustments (closing stock, depreciation, outstanding and prepaid items, accrued and unearned incomes) |
| 9 | Partnership Accounts: Fundamentals of partnership, fixed and fluctuating capital, interest on capital and drawings, salary and commission, preparation of profit and loss appropriation account |
| 10 | Partnership: Admission, retirement, and death of a partner; goodwill valuation; revaluation of assets and liabilities; treatment of joint life policy |
| 11 | Partnership: Dissolution of a firm including piecemeal distribution and insolvency of partners |
| 12 | Company Accounts: Shares and debentures, issue, forfeiture, and reissue of shares, redemption of preference shares, issue and redemption of debentures |
| 13 | Elementary Concepts of Computerized Accounting: Introduction to accounting software, features of computerized accounting |
Daily practice is essential. Accounting is a skill-based paper. Reading concepts without solving problems does not build the accuracy needed to score well. Set aside time every day to solve journal entries, accounts, and final statement problems.
Master the adjustment entries. Questions on preparation of final accounts almost always include multiple adjustments (depreciation, prepaid expenses, outstanding items, goods taken for personal use). Practice these combinations repeatedly.
Partnership accounts carry high marks. Chapters 9 to 11 covering partnership fundamentals, admission and retirement, and dissolution typically account for 30 to 40 percent of Paper 1 in most sessions. Prioritise depth in these chapters.
Company accounts is an introduction. At the Foundation level, company accounts are tested at a basic level. Understanding share issue, forfeiture, and reissue is sufficient; do not over-prepare for advanced company accounts topics.
Paper 2 is divided into two sections. Section A covers business legislation and Section B covers business communication skills.
| Chapter Topic | |
| 1 | The Indian Contract Act, 1872: Nature of contract, offer and acceptance, consideration, capacity to contract, free consent, legality of object and consideration, void agreements, performance of contracts, discharge of contracts, breach and remedies |
| 2 | The Sale of Goods Act, 1930: Nature of contract of sale, conditions and warranties, transfer of property, performance of contract of sale, rights of unpaid seller |
| 3 | The Indian Partnership Act, 1932: Nature of partnership, formation, rights and duties of partners, dissolution of firm |
| 4 | The Limited Liability Partnership Act, 2008: Concept of LLP, formation, management, liability, winding up |
| 5 | The Companies Act, 2013 (Introduction only): Nature and types of companies, formation of a company, Memorandum and Articles of Association, prospectus |
| Chapter Topic | |
| 1 | Communication: Meaning, process, types, barriers |
| 2 | Sentence Types and Direct and Indirect Speech |
| 3 | Active and Passive Voice |
| 4 | Reading Comprehension: Understanding and interpreting unseen passages |
| 5 | Note-making |
| 6 | Introduction to Business Correspondence: Formal letter writing, structure and format |
| 7 | Types of Business Correspondence: Trade enquiry, order letters, complaint letters, collection letters |
| 8 | Official Communication: Government letters, notices, circulars, agenda, minutes |
| 9 | Report Writing: Formal and informal reports |
| 10 | Precis Writing |
Section B of Paper 2 is examined in English only. Candidates who opt for the Hindi medium in other papers must still answer Section B in English.
Read the bare acts for Section A. For the Indian Contract Act especially, read the actual sections alongside your study material. The language and terminology of the act appears directly in exam questions, and familiarity with the original provisions gives a significant advantage.
Case-law application questions. Section A frequently presents scenarios and asks candidates to apply legal provisions. Practice identifying which provision applies to the given situation. Mere memorization of sections without understanding their application does not score well.
Section B requires regular writing practice. Business Correspondence is a skills-based section. Write at least one letter, email, or report every day during your preparation. Pay attention to format, structure, salutation, subject lines, and tone.
Grammar and language. Active-passive voice and direct-indirect speech questions appear regularly. These are straightforward marks if the rules are memorized and practiced.
Paper 3 is an objective paper (MCQ) with a duration of two hours. It carries negative marking of 0.25 marks per wrong answer. It is divided into three sections.
| Chapter Topic | |
| 1 | Ratio and Proportion, Indices, Logarithms: Ratios, proportions, laws of indices, logarithm properties |
| 2 | Equations: Linear equations, quadratic equations, simultaneous equations |
| 3 | Matrices: Types of matrices, operations, determinants, inverse |
| 4 | Linear Inequalities: Graphical solution of linear inequalities |
| 5 | Time Value of Money: Simple interest, compound interest, annuity, present value, sinking fund |
| 6 | Permutations and Combinations: Factorial notation, nPr, nCr, practical problems |
| 7 | Sets, Relations, and Functions: Types of sets, operations, Venn diagrams, types of functions |
| 8 | Basic Applications of Differential and Integral Calculus: Derivatives, maxima and minima, integration, basic business applications |
| 9 | Sequence and Series (Arithmetic and Geometric Progression) |
| Chapter Topic | |
| 1 | Number Series, Coding and Decoding, Odd Man Out |
| 2 | Direction Tests |
| 3 | Seating Arrangement |
| 4 | Blood Relations |
| 5 | Syllogisms |
| 6 | Statement and Assumptions / Conclusions |
| Chapter Topic | |
| 1 | Statistical Description of Data: Frequency distribution, graphical representation (histogram, ogive, frequency polygon) |
| 2 | Measures of Central Tendency: Mean, median, mode (including for grouped data) |
| 3 | Measures of Dispersion: Range, quartile deviation, mean deviation, standard deviation, coefficient of variation |
| 4 | Probability: Basic concepts, addition and multiplication theorems, conditional probability |
| 5 | Theoretical Distributions: Binomial, Poisson, Normal distribution |
| 6 | Correlation and Regression: Scatter diagram, Karl Pearson's coefficient, Spearman's rank correlation, regression lines and coefficients |
| 7 | Index Numbers: Price and quantity indices, Laspeyre's, Paasche's, and Fisher's indices |
| 8 | Time Series Analysis: Components of time series, methods of measuring trend |
Negative marking demands selectivity. Unlike Paper 1 and Paper 2, Paper 3 penalizes wrong answers by 0.25 marks per incorrect response. Attempt questions only when you are confident. A score of 35 to 40 marks in Paper 3 from 50 to 55 confident attempts is better than attempting all 100 questions with low accuracy.
Section B (Logical Reasoning) is high-scoring. Logical reasoning questions are rule-based and can be mastered quickly with practice. Each correct answer earns 2 marks. Invest time in reasoning practice early in your preparation.
Statistics requires formula familiarity. Standard deviation, correlation coefficient, regression, and index numbers involve formulas that must be memorized and applied quickly. Practice each formula type with at least 10 to 15 numerical problems.
Calculus is limited in scope. The calculus component (Chapter 8 of Business Mathematics) is tested at a basic level. Derivatives, maxima-minima problems, and basic integration applications are sufficient; advanced calculus is not part of the Foundation syllabus.
Paper 4 is also an objective paper with a two-hour duration and negative marking of 0.25 per wrong answer.
| Chapter Topic | |
| 1 | Introduction to Business Economics: Meaning, scope, relationship with other disciplines, basic problems of an economy |
| 2 | Theory of Demand and Supply: Law of demand, demand curve, determinants of demand, elasticity of demand (price, income, cross), consumer surplus. Law of supply, elasticity of supply |
| 3 | Theory of Production and Cost: Factors of production, production function, law of variable proportions, returns to scale, concepts of cost (short-run and long-run), economies of scale |
| 4 | Price Determination in Different Markets: Perfect competition, monopoly, monopolistic competition, oligopoly: characteristics and equilibrium |
| 5 | Business Cycles: Meaning, features, phases (expansion, peak, contraction, trough), causes and theories |
| 6 | National Income: Concepts (GDP, GNP, NNP, NI, PI, DPI), methods of measurement (income, expenditure, value added), problems in measurement |
| 7 | Public Finance: Sources of government revenue, types of taxes, public expenditure, budget (types and fiscal deficit) |
| 8 | Money and Banking: Functions of money, types of money, banking system, RBI and its functions, credit creation |
| 9 | International Trade: Absolute and comparative advantage, balance of trade and balance of payments, foreign exchange rate |
| 10 | Indian Economy: Planning commission and NITI Aayog, five-year plans (overview), sectors of the Indian economy, economic reforms since 1991 |
| 11 | Business and Commercial Knowledge: Types of business organizations, government and business, consumer protection, e-commerce basics |
Understand concepts, do not memorize. Economics is a conceptual subject. Questions in Paper 4 test whether you understand how markets work, why costs behave in certain ways, and what macro indicators mean. Rote memorization of definitions scores much less than conceptual clarity.
Draw and understand diagrams. Demand and supply curves, production function diagrams, and market equilibrium graphs are tested indirectly through MCQs. Understanding what each diagram shows builds the ability to answer related MCQs quickly.
Indian Economy and Banking are factual. Chapters on Indian economy, public finance, and money and banking involve facts and current economic data. These chapters benefit from reading ICAI study material combined with awareness of basic economic indicators (GDP growth rate, RBI repo rate, inflation).
Business and Commercial Knowledge is straightforward. Chapter 11 is relatively straightforward and covers organizational structures and basic commercial concepts. It is a quick-scoring area if studied carefully.
| Paper ICAI Study Material Supplementary Reference | ||
| Paper 1 | ICAI Practice Manual and Study Material (Volume 1 and 2) | PC Tulsian and Bharat Tulsian (Principles of Accounting) |
| Paper 2 | ICAI Study Material for Business Laws | PC Tulsian, Tushar Tulsian (Business Laws) |
| Paper 3 | ICAI Study Material for Quantitative Aptitude | Kailash Thakur (Business Mathematics and Statistics) |
| Paper 4 | ICAI Study Material for Business Economics | Any standard microeconomics and macroeconomics textbook |
The ICAI study material is the primary and most reliable source. It is aligned exactly with the syllabus and includes practice questions and past exam-style problems.
Cover Chapters 1 to 6 of Paper 1, Chapters 1 to 3 of Paper 2 Section A, and basic chapters of Papers 3 and 4 alongside each other. Do not complete one paper entirely before starting another.
Complete the remaining chapters of all four papers. Focus extra time on partnership accounts (Paper 1), Indian Contract Act (Paper 2), statistics (Paper 3), and market structures (Paper 4).
Revise all chapters, attempt ICAI practice questions, and solve previous year papers from the CA Foundation PYQ page.
Track your coverage throughout using the CA Foundation Syllabus Tracker.
Is the CA Foundation syllabus the same for all three sessions in a year? Yes. The syllabus prescribed by ICAI applies uniformly across all three sessions in a year. ICAI announces any syllabus changes through official circulars before the relevant session.
Does the Foundation syllabus change with the new ICAI scheme? The current syllabus is based on the ICAI New Scheme of Education and Training, which came into effect from 2023. Students should always refer to the official ICAI website for the most current syllabus PDF before beginning preparation.
Is Section B of Paper 2 only in English? Yes. Business Correspondence and Reporting (Section B of Paper 2) is examined exclusively in English, even for candidates who choose Hindi medium for other papers.
Can the order of paper-wise preparation be changed? Yes. ICAI does not prescribe a study order. However, beginning with Paper 1 (Accounting) and Paper 3 (Quantitative Aptitude) simultaneously is recommended because both require daily practice and cannot be covered through last-minute study.
Is calculus covered in CA Foundation Quantitative Aptitude? Yes, but only at an elementary level. Basic derivatives, application of derivatives to find maxima and minima, and simple integration are included. Advanced or multiple-variable calculus is not part of the Foundation syllabus.
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