CA Foundation Subjects and Syllabus for Jan 2025
Learn about CA Foundation subjects, including Accounting, Business Laws, Mathematics, Economics, and more. Get insights into the syllabus, exam pattern, and tips!
Table of Content
The ICAI has announced the revised CA Foundation subjects & syllabus for 2025, effective for the January 2025 examinations. This updated syllabus provides a complete outline of the course structure, including subject objectives, unit and topic details, examination pattern, and mark allocation.
The latest CA Foundation syllabus for the January 2025 exams is now available. Students can download the complete CA Foundation subject-wise syllabus PDF from the ICAI website or this page. To ensure effective preparation, it's essential to follow the official ICAI CA Foundation study material and choose textbooks with the updated syllabus.
With the CA Foundation exams scheduled to take place thrice a year in January, May/June, and September, it's necessary to kick-start your preparation now. Begin by thoroughly understanding the CA foundation subjects and using all available study materials to set yourself up for success.
This article provides the revised ICAI CA Foundation syllabus for Jan 2025, along with a downloadable PDF link, marks weightage details, and exam pattern information.
CA Foundation Subjects Overview
Pursuing a CA course requires acquiring complete knowledge and skills for a chartered accountant. The CA syllabus comprises a range of subjects, outlined in the table below, which are designed to equip candidates with the expertise needed to perform their roles efficiently. The first-level syllabus is divided into CA Foundation 4 subjects.
| S.No | Paper Name | Marks | Types of Questions |
| Paper 1 | Accounting | 100 Marks | Objective |
| Paper 2 | Business Law | 100 Marks | Objective |
| Paper 3 | Quantitative Aptitude: Part A: Business Mathematics Part B: Logical Reasoning Part C: Statistics |
100 Marks Part A: 40 Marks Part B: 20 Marks Part C: 40 Marks |
Subjective |
| Paper 4 | Business Economics | 100 Marks | Subjective |
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CA Foundation: Paper 1 (Accounting Subject)
| Paper 1: Accounting | Weightage | |
| 1. Theoretical Framework | Meaning and Scope of Accounting | 5% - 10% |
| 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 | ||
| 2. Accounting Process | (i) Recording accounting transactions: principles of double entry bookkeeping, Books of original entry (journal, subsidiary books, cash book, edger-format), posting from journal and subsidiary books, balancing of accounts. |
30%-35% |
| Preparation of Trial Balance | ||
| Rectification of Errors | ||
| 3. Bank Reconciliation Statement | Introduction, reasons, and preparation of bank reconciliation statement. | 30%-35% |
| 4. Inventories | Cost of inventory, Net realizable value, basis and technique of Inventory valuation, and Record System | 30%-35% |
| 5. Depreciation and Amortisation | Tangible and Intangible assets: Concepts, Methods of computation and accounting treatment of depreciation/amortization, Change in depreciation methods | 30%-35% |
| 6. Bills of exchange and Promissory notes | Meaning of bills of exchange and promissory notes and their accounting treatment; accommodation bills. | 30%-35% |
| 7. 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 | 20%-25% |
| 8. Financial Statements of Not-for-Profit Organization | Significance and preparation of receipt and payment account, income and expenditure account and balance sheet, the difference between profit and loss account and income and expenditure account. | 20%-25% |
| 9. Accounts from Incomplete Records | (Excluding preparation of accounts based on ratios) | 20%-25% |
| 10. Partnership and LLP Accounts | (i) Final accounts of partnership firms and LLP’s (ii) Admission, retirement, and death of a partner, including treatment of goodwill (iii) Dissolution of partnership firms and LLPs, including piecemeal distribution of assets |
15%-20% |
| 11. Company Accounts | Definition of shares and debentures | 15%-25% |
| Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares | ||
| Redemption of preference shares and debentures (excluding purchase and redemption of own debentures and sinking fund method) | ||
| Accounting for bonus issues and the right issue | ||
CA Foundation: Paper 2 (Business Law Subject)
| Paper 2: Business Laws | Weightage | |
| 1. Indian Regulatory Framework | Major Regulatory Bodies such as the Ministry of Finance, Ministry of Corporate Affairs, SEBI, RBI, IBBI, Ministry of Law and Justice, etc. | 0%-5% |
| 2. The Indian Contract Act, 1872 | General nature of contract, Consideration, and Other essential elements of a valid contract, Performance of Contract, Breach of contract, Contingent and quasi-contract, Contract of Indemnity and Guarantee, Contract of Bailment and Pledge, Contract of Agency |
20%-30% |
| 3. 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. | 15%-20% |
| 4. The Indian Partnership Act, 1932 | General Nature of Partnership, Rights, and Duties of partners, Reconstitution of firms, Registration and Dissolution of a firm. | 15%-20% |
| 5. 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%-10% |
| 6. 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 | 10% - 15% |
CA Foundation: Paper 3 (Quantitative Aptitude Subject)
Paper 3 is divided into three parts, i.e.
- Part A: Business Mathematics
- Part B: Logical Reasoning
- Part C: Statistics
| Paper 3: Quantitative Aptitude (100 Marks) | Weightage | |
| Part A: Business Mathematics (40 Marks) | ||
| 1. Ratio and proportion, Indices and Logarithms | Ratio and proportion, time and work-related problems, laws of indices, exponents, logarithms, and anti-logarithms. | 20%-30% |
| 2. Equations | Equations: linear simultaneous linear equations up to three variables; quadratic and cubic equations in one variable. Applications in business-related problems | 20%-30% |
| 3. Linear Inequalities | Linear Inequalities: Linear Inequalities in one and two variables and the solution space | 20%-30% |
| 4. Mathematics of Finance |
|
30%-40% |
| 5. Permutations and Combinations | Basic concepts of Permutations and combinations: Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions, and combinations with standard results |
30%-50% |
| 6. Sequence and Series | Introduction Sequences, Series, Arithmetic and Geometric progression, Relationship between AM and GM and Sum of n terms of special series and Business Applications. | 30%-50% |
| 7. Sets, Relations, and Functions. Basics of Limits and Continuity Functions. | 30%-50% | |
| 8. Basic applications of differential and integral calculus in business and economics (excluding trigonometric applications). | 30%-50% | |
| Part B: Logical Reasoning (20 Marks) | ||
| 9. Number series coding and Decoding and odd man out | 20%-30% | |
| 10. Direction Tests | 20%-30% | |
| 11. Seating Arrangements | 20%-30% | |
| 12. Blood Relations | 20%-30% | |
| Part C: Statistics (40 Marks) | ||
| 13. Unit 1: Statistical Representation of Data | Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency distribution—histogram, Frequency Polygon, Ogive, Pie-chart |
45%-50% |
| 13. Unit:2 Sampling | Basic principles of sampling theory, comparison between sample survey and complete enumeration, some important terms associated with sampling types of sampling, sampling, and non-sampling errors. | 45%-50% |
| 14. Measures of Central Tendency and Dispersion | Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation | 45%-50% |
| 15. Probability | Independent and dependent events; mutually exclusive events. Total and Compound Probability and Bayes’ theorem | 25%-30% |
| 16. 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 application). | 25%-30% |
| 17. Correlation and Regression | Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Regression lines, Regression equations, and regression coefficients | 10%-15% |
| 18. Index Numbers | Uses of index numbers, problems involved in the construction of index numbers, and methods of construction of index numbers. BSE SENSEX and NSE | 10%-15% |
CA Foundation: Paper 4 (Business Economics Subject)
| PAPER 4: BUSINESS ECONOMICS (100 Marks) | Weightage | |
| 1. Introduction to Business Economics | Meaning and scope of Business Economics Basic Problems of an Economy and Role of Price Mechanism. | 5% |
| 2. 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 Behavior—Indifference Curve Approach Meaning and Determinants of Supply, Law of Supply and Elasticity of Supply, Market Equilibrium, and Social Efficiency. |
10% |
| 3. 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, Total, and Variable Costs | 10% |
| 4. Price Determination in Different Markets | Market Structures: Perfect Competition and Monopoly Monopolistic Competition. Using Game Theory to study Oligopoly. Price Determination in these Markets Price-Output Determination under different Market Forms | 15% |
| 5. Determination of National Income | a. Macroeconomic Aggregates and Measurement of National Income b. Determination of National Income: Keynes’ Two Sector Basic Model, Three Sectors and Four Sectors Model |
15% |
| 6. Business Cycles |
|
5% |
| 7. Public Finance | a. Fiscal functions: An Overview, Centre and State Finance b Market failure/government intervention to correct market failure. c. Process of budget making: Sources of Revenue, Expenditure Management, and Management of Public Debt. d. Fiscal Policy |
10% |
| 8. Money Market | a. Concept of Money Demand b. Important theories of Demand for Money c. Concept of Money Supply, Cryptocurrency and other new terminology d. Monetary Policy |
10% |
| 9. International Trade | a. Theories of International Trade, including theories of intra-industry trade by Krugman. b. Trade Policy: The Instruments of Trade Policy c. Trade Negotiations d. Exchange Rates and its economic effects e. International Capital Movements: Foreign Direct Investment |
10% |
| 10. Indian Economy | (Before 1950: Chanakya and Nand Vansh, OECD Paper (1950-1991), Basic knowledge 1991 Onwards | 10% |
Summary of the Content
The CA Foundation course is the entry-level stage for pursuing a career in chartered accounting. The course comprises four subjects, divided into two groups, which aim to build a strong foundation in accounting, law, and other related disciplines.
The CA Foundation course subjects include Principles and Practice of Accounting, Business Laws and Business Correspondence and Reporting, Business Mathematics and Logical Reasoning, and Statistics. By mastering these subjects, students can develop an extensive understanding of the fundamental principles and concepts required to succeed in the field of chartered accounting.
FAQs
What are the subjects in the CA Foundation course?
The CA Foundation course consists of four subjects that provide a solid foundation in accounting, law, and other related disciplines. The subjects are Principles and Practice of Accounting, Business Laws and Business Correspondence and Reporting, Business Mathematics and Logical Reasoning, and Statistics. These subjects are designed to equip students with the knowledge and skills required to succeed in the field of chartered accounting.
What is the weightage of each subject in the CA Foundation exams?
Each subject in the CA Foundation exams carries equal weightage, with 100 marks allocated to each paper. This ensures that students give equal importance to all subjects and develop a comprehensive understanding of the concepts. The equal weightage also helps to assess students' knowledge and skills in each subject.
Is there any negative marking in the CA Foundation exams?
No, there is no negative marking in the CA Foundation exams. This means that students will not lose marks for incorrect answers. However, it's essential to note that students should still attempt to answer questions correctly, as correct answers will help them score higher marks.
What is the duration of each paper in the CA Foundation exams?
Each paper in the CA Foundation exams is of 3 hours duration. This duration is sufficient for students to attempt all questions and complete the paper. Students should manage their time effectively to ensure that they complete the paper within the given time frame.
Can I appear for individual subjects, or do I need to appear for all subjects together?
You can appear for individual subjects or all subjects together, as per your preference. This flexibility allows students to focus on specific subjects where they need improvement or attempt all subjects together to complete the exam.
What are the passing criteria for the CA Foundation exams?
To pass the CA Foundation exams, you need to secure a minimum of 40% marks in each subject and an aggregate of 50% marks in all subjects. This passing criteria ensures that students have a comprehensive understanding of the concepts and are well-prepared for the next level of the CA course.
Are the CA Foundation exams conducted online or offline?
The CA Foundation exams are conducted offline, in pen-and-paper mode. This traditional mode of examination helps to assess students' knowledge and skills in a more comprehensive manner.
Can I use calculators during the CA Foundation exams?
Yes, you are allowed to use calculators during the CA Foundation exams. However, it's essential to note that students should ensure that their calculators are in working condition and do not have any prohibited features.
How many attempts are allowed to clear the CA Foundation exams?
There is no limit on the number of attempts to clear the CA Foundation exams. Students can appear for the exams as many times as they need to, until they pass. This flexibility helps to reduce stress and allows students to focus on their preparation.
What is the next step after clearing the CA Foundation exams?
After clearing the CA Foundation exams, you need to register for the CA Intermediate course and complete the required study period before appearing for the CA Intermediate exams. This next step helps to further develop your knowledge and skills in accounting and related disciplines.
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