How to Prepare for CA Foundation
3 weeks ago
Chartered Accountancy (CA) is considered as one of the toughest courses in India. Most of the commerce students aspire to become a chartered accountant and choose Chartered Accountant course after 12th commerce. The CA Foundation Course is the entrance-examination for the Chartered Accountancy Curriculum. The Institute of Chartered Accountants in India (ICAI) conducts this examination twice a year(May/ November). Earlier this exam was known as Common Proficiency Test (CPT) but now ICAI has renamed it as the CA foundation exam. This year due to coronavirus outbreak CA Foundation (May 2020 cycle) examination is rescheduled. Now, the CA Foundation exam will be conducted in August.
To gain good results in the CA foundation exam, the candidate has to work hard. In getting the concepts clear, guesswork doesn’t work in the CA foundation exam. The right course syllabus and a proper study plan with a focused mind can help you in clearing the CA Foundation exam.
6 Tips for CA Foundation exam preparation:
1.Prepare a Time Table
Preparing a timetable is a crucial step before starting any study, do not think making a time table is a wastage of time. A proper study plan helps you understand what to study or from where to start. Collect all the study material and allocate time to every subject. Give priority to those subjects in which you have less knowledge. This will not just properly organize your syllabus but will also cover all the subjects before the exam.
2. Prepare your Revision Notes
CA foundation course is vast and impossible to revise in a day, so the best way to revise during exam time is from your handwritten notes. Make a summary of the class teaching and book you read.
3. Practice Mock Test Papers and Previous Question Papers
After the completion of the CA foundation course syllabus, it is advisable to solve mock test papers. Mock Test papers will help you in understanding the exam pattern better and will teach you time management. Try to solve one paper every day and calculate the time taken for completing it. It will help you in knowing about your strength and weaknesses and which chapter needs more revision.
4. Focus on Presentation
CA course is professional course hence CA exams are Professional exams so don’t take them as your school exams that’s why you need to focus on presentation. Two of the papers in the CA Foundation exam are subjective so start practicing the question in writing and tally them either with suggested answers or with your mentors.
5. Command over Calculator
ICAI allows calculator in exams. CA exams are very lengthy so it becomes very important to grab command over the calculator. Learn the short keys like G, M-, M+,etc. This will save your time in the exam.
6. Take Short Breaks
Every 2-3 hours take short breaks for 10-15 minutes to refresh your mind. Spend your morning time in doing theory subjects and then work on practical subjects. At the end of the day revise what you have done during the day.
CA Foundation Course Syllabus
ICAI has released the CA foundation syllabus 2020 you can download fromhttps://resource.cdn.icai.org/45570bos35676-foundation.pdf
CA foundation Paper pattern
- CA Foundation exam has four papers. The total exam is of 400 marks i.e. each exam is of 100 marks.
- For each paper,3 hours is given. CA Foundation exam is an offline exam and is conducted twice in a year May and November.
- Paper 1 and Paper 2 will be of a subjective type and Paper 3 and Paper 4 will be of objective type.
- Candidates must score a minimum of 40% marks in each paper and a minimum of 50% marks in aggregate of all the papers to pass the CA foundation exam.
- The medium of the exam is in either English or Hindi languages.
CA Foundation exam Subjects
Paper-1 principles and practice of Accounting(100- Marks)
This subject consists of basic accounting in which students have studied in the 11th and 12th commerce field.
- Theoretical Framework
- Accounting Concepts, principles, and process
- Bank reconciliation statement
- Capital and Revenue Expenditure, Capital and Revenue Receipts, contingent assets, and contingent liabilities.
- Final Accounts of Sole Proprietors
- Partnership account
- Financial Statements of Not-for-Profit Organizations
- Introduction to Company Accounts
Paper-2 Business laws and business correspondence (100-Marks)
Section A- Business Law (60 Marks)
Business law is an interesting subject and is entirely different for students who are appearing for the CA foundation course directly after their 12th standard. This theory subject offers a basic understanding of the general and corporate laws.It is a subjective paper, so students should also focus on their presentation skills.
- The Indian contract act, 1872
- The sales of a good act, 1930
- The Indian partnership act, 1932
- The limited liability partnership act, 2008
- The companies act, 2013
Section B- business corresponding and reporting (40 Marks)
The Business Correspondence and Reporting subject is newly introduced in the CA foundation course, similar to General English. This subject is similar to general English and matches the communication demands of CAs in the current era.
- Part 1- communication
- Part2- sentence types and word power
- Part 3- comprehension passages and note-making
- Part 4- developing writing skills (introduction to basic writing, article writing, report writing, writing formal letters & Mail, and resume writing)
Paper-3 Business Mathematics, Logical Reasoning and Statistics
Part A- Business Mathematics (40 Marks)
Business Mathematics is full of formulas and problems, the student must work on this subject regularly to score well. If neededthan take coaching for this paper.
- Ratio and Proportions, Indices and Logarithms
- Equations and Matrices
- Linear Inequalities with Objective Functions and Optimization with respect to Objective Function
- Time Value of Money
- Permutations and Combinations
- Sequence and Series
- Sets, Relations, and Functions
- Basic Application of Differential and Integral Calculus
Part B- Logical Reasoning (20 Marks)
To ace, logical reasoning paper regularly solve logical reasoning questions from different books.
- Number Series, Coding & Decoding and the odd man out
- Direction Tests
- Seat Arrangement
- Blood Relations
Part C- Statistics (40 Marks)
To clear this paper student has to be precise in his formula and calculations.
- Statistical Description of Data
- Measures of Central Tendency and Dispersion.
- Theoretical Distributions
- Correlation and Regressions
- Index Number and Time Series
Paper 4- Business Economics and Business & Commercial Knowledge
Part A- Business economics (60 marks)
The Business Economics syllabus is similar to the higher secondary syllabus. This paper question will be in objective type.
- Introduction to Business Economics
- Theory of Demand and Supply
- Theory of Production and Cost
- Price Determination in Different Markets
- Business Cycles
Part B- Business & Commercial Knowledge (40 Marks)
The Business and Commercial Knowledge is a fresh subject added to the CA foundation course. The subject furnishes a basic understanding of the business. It is a theory paper that has to be mastered by the candidate by learning and understanding its fundamentals.
- Introduction to Business
- Business Environment
- Business Organizations
- Government Policies for Business Growth
- Organizations Facilitating Business
- Common Business Technologies
Preparing a good study plan and staying dedicated to it will help you in cracking the CA foundation exam.
All the Best!