ICAI CA Foundation 2025 syllabus will remain unchanged as of the previous year. The difficulty level of the exam remains easy to moderate more or less. Candidates’ basics of business laws, economics, and accountancy are analyzed through the test. The syllabus of the exam also includes the topics related to the same. There will be a total of 4 papers in which candidates need to appear. The units included in ICAI CA Foundation 2025 syllabus are
- Principles and Practice of Accounting
- Business Laws and Business Correspondence and Reporting
- Business Mathematics, Logical Reasoning, and Statistics
- Business Economics, and Business, and Commercial Knowledge
Each of the papers has a weightage of 100 marks. Read the article to grasp the topics needed to be covered for the preparation of ICAI CA Foundation 2025 exam.
Principles and Practice of Accounting Syllabus
ICAI CA Foundation’s Paper-1 or Principles and Practice of Accounting is designed to analyze candidates’ basic concepts about principles of Accounting. It also checks students’ ability to draw financial statements and simple problem-solving with the help of those principles. The topics to be covered in this portion are as follows:
| Units |
Sub Topics |
| Theoretical Framework |
Meaning and Scope of Accounting Accounting Concepts, Principles, and Conventions Accounting terminology - Glossary Capital and revenue expenditure, Capital and revenue receipts, Contingent assets, and contingent liabilities Accounting PoliciesAccounting as a Measurement Discipline – Valuation Principles, Accounting Estimates.Accounting Standards – Concepts and Objectives.Indian Accounting Standards – Concepts and Objectives |
| Accounting Process |
Books of AccountsPreparation of Trial BalanceRectification of Errors |
| Bank Reconciliation Statement |
IntroductionReasonsPreparation of Bank Reconciliation Statement |
| Inventories |
Cost of InventoryNet Realizable ValueBasis and Rechnique of Inventory Valuation and Record-Keeping |
| Concept and Accounting of Depreciation |
ConceptsMethods of Computation and Accounting Treatment of DepreciationChange in Depreciation Methods |
| Accounting for Special Transactions |
(i) Bills of exchange and promissory notes Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills(ii) Sale of goods on approval or return basis Meaning of goods sent on approval or return basis and accounting treatment.(iii) Consignments Meaning and Features of consignment business, Difference between sale and consignment, Accounting treatments for consignment transactions and events in the books of consignor and consignee.(iv) Average due Date Meaning, Calculation of average due date in various situations.(v) Account Current Meaning of Account Current, Methods of preparing Account Current |
| Final Accounts of Sole Proprietors |
Elements of financial statementsClosing Adjustment EntriesTrading AccountProfit and Loss Account and Balance Sheet of Manufacturing and Non-manufacturing Entities |
| Partnership Accounts |
Final Accounts of Partnership FirmsAdmission, Retirement, and Death of a Partner including Treatment of GoodwillIntroduction to LLPs and Distinction of LLPs from Partnership |
| Financial Statements of Not-for-Profit Organizations |
Significance of Receipt and Payment AccountIncome and Expenditure Account and Balance SheetDifference between Profit and Loss Account and Income and Expenditure AccountPreparation of Receipt and Payment AccountIncome and ExpenditureAccount and Balance Sheet |
| Introduction to Company Accounts |
Definition of shares and debenturesIssue of shares and debentures, forfeiture of shares, re-issue of forfeited sharesStatement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013 |
Business Laws and Business Correspondence and Reporting Syllabus
The section deals with significant provisions of select business laws and obtaining the ability to address basic issues of applications. It also deals with the requirements for good communication skills for business. The topics to be covered in this portion are as follows:
| Units |
Sub Topics |
| Business Laws |
The Indian Contract Act, 1872: An overview of Sections 1 to 75 covering the general nature of contract, consideration, other essential elements of a valid contract, performance of contract, breach of contract, Contingent and Quasi ContractThe 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 rightsThe Indian Partnership Act, 1932: General Nature of Partnership, Rights and Duties of Partners, Reconstitution of Firms, Registration and Dissolution of a firmThe Limited Liability Partnership Act, 2008: Introduction- covering nature and scope, Essential features, characteristics of LLP, Incorporation and differences with other forms of organizationsThe 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 |
| Business Correspondence and Reporting |
Communication: (i) Types (ii) Directions (iii) Network (iv) Process (v) Problems (vi) Barriers (vii) Types of Communication a) Interpersonal Skills b) Listening Skills c) Emotional Intelligence (viii) Sample Questions with Answers (ix) ExerciseSentence Types: (Direct-Indirect, Active -Passive Speech) (i) Sentence: Definition (ii) Classification of sentence based on connotation a) Assertive sentences b) Interrogative sentences c) Imperative sentences d) Exclamatory sentences e) Optative sentences (iii) Sentence Structure a) Subject and Predicate b) Verb (Auxiliary, Finite) c) Object (Direct, Indirect) d) Complement e) Adjunct or Adverbial f) Clause Structure g) Types of Clauses - Independent clauses - Dependent clauses - Relative or noun clauses (iv) Types of sentences a) Simple sentence b) Compound sentence c) Complex sentence d) Compound-complex sentence (v) Direct-Indirect Speech a) Introduction b) Procedure for converting Direct speech into Indirect speech - Rules for converting Direct speech into Indirect speech - Change in pronouns - Change in tenses - Change in modals - Changes for Imperative sentences - Changes for Exclamatory sentences - Changes for Interrogative sentences - Punctuation in Direct speech c) Rules for converting Indirect speech into Direct speech (vi) Active Passive Voice: Introduction a) Usage: Active vs. passive voice b) Reasons for using Passive voice c) Changing Passive voice to Active voice d) Changing Active voice to Passive voice e) Suggestions for using Active and Passive voice (vii) Verbs Voice Active or passive (viii) ExercisesVocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations and Idioms: (i) Introduction (ii) Significance of improving vocabulary (iii) How to improve vocabulary (iv) Root words (v) Synonyms and Antonyms (vi) Words formed by using Prefixes (vii) Words formed by using Suffixes (viii) Phrasal verbs (ix) Collocations (x) Idioms (xi) ExercisesComprehension Passages (i) Introduction to Comprehension Passages (ii) Points to ponder (iii) Sample Passages with answers (iv) ExercisesNote Making (i) Introduction to Note Making (ii) Significance of Note Making (iii) Detailed Format Heading(Title) a) Sub-heading b) Indentation c) Points d) Use of abbreviations e) Summary f) Content g) Expression (iv) Steps to Comprehend and summarize text (v) Helpful Hints (vi) Sample Passages with Notes (vii) ExercisesIntroduction to Basic Writing (i) Introduction (ii) Process of writing (iii) Styles of Writing (iv) Significance of writing skills for students (v) Writing Conventions (vi) Characteristics of good writing (vii) Do’s and Don’ts of good writing Précis Writing (i) What is Précis writing? (ii) Features of good Précis writing (iii) How to write a Précis (iv) Do’s and Don’ts of Précis writing (v) Examples (Passages with Précis) (vi) ExercisesArticle Writing (i) What is an Article? (ii) Essential elements of Article Writing (iii) Detailed Format a) Title b) By- Writer’s Name c) Body - Introduction - Main Idea-Support - Conclusion d) Sample Articles e) ExercisesReport Writing (i) What is a Report? (ii) Essential elements of Report Writing (iii) Kinds of Reports a) Reporting for a Meeting/Assembly b) Reporting for a Newspaper c) Reporting for a Magazine (iv) Detailed Format for (iii) above a) Title b) By- Writer’s Name c) Place, Date d) Body - What - When - Where - Who - How e) Tips and Conventions of Report Writing f) Sample Reports g) ExercisesWriting Formal Letters (i) Types of Letters a) Circulars b) Complaints c) Memos d) Promotional Content e) Sales f) Recovery/Remittances (ii) Detailed format for (i) above a) Date b) Salutation c) Subject d) Body of the letter - First paragraph - Second paragraph e) Complimentary Closure (iii) Points to Remember (iv) Sample Letters (v) ExercisesWriting Formal Mails (i) How to Write a Formal Mail? (ii) Writing Effective Mails (iii) Essential elements of Mails a) Subject line b) Formal Greetings c) Target Audience(Reader) d) Clarity and Conciseness e) Formal Closing f) Proofread g) Feedback (iv) Tips and Conventions of Mails (v) Sample Mails (vi) ExercisesResume Writing (i) Essential Elements of Resume a) Name and contact details b) Objective Summary c) Academic Qualifications and Achievements d) Co-curricular Achievements e) Training Programs attended/completed f) Strengths g) Interests/Hobbies h) Declaration i) Signature (ii) Resume Writing Tips and Conventions (iii) Sample Resumes (iv) ExercisesMeetings (i) Notice (ii) Agenda (iii) Drafting minutes (iv) Action Taken Report |
Business Mathematics, Logical Reasoning, and Statistics Syllabus
Students’ basic Mathematical Statistical and Logical Reasoning approaches and their usages in Business, Finance, and Economics are analyzed in this section. The topics to be covered in this part are as follows:
| Units |
Sub Topics |
| Business Mathematics |
Ratio and Proportion, Indices and Logarithms: Ratio and Proportion (Business Applications related to Ration and Proportion) Laws of Indices, Exponents and Logarithms and Anti LogarithmsEquations: Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variableLinear Inequalities with Objective Functions and Optimization w.r.t. objective functionTime value of Money: (i) Simple Interest (ii) Compound interest (iii) Depreciation (iv) Effective Rate of Interest (v) Present Value (vi) Net Present Value (vii) Future Value (viii) Perpetuity (ix) Annuities (x) Sinking Funds (xi) Valuation of Bonds (xii) Calculating of EMI (xiii) Calculations of Returns: a) Nominal Rate of Return b) Effective Rate of Return c) 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 resultsSequence and Series: Introduction Sequences, Series, Arithmetic and Geometric progression, Relationship between AM and GM and Sum of n terms of special seriesSets, Relations, and FunctionsBasic applications of Differential and Integral calculus (Excluding trigonometric applications), Applications of Marginal Cost and Marginal Revenue, etc. |
| Logical Reasoning |
Number series, Coding and Decoding, and the odd man outDirection TestsSeating ArrangementsBlood Relations |
| Statistics |
- Statistical description of Data: Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution – Histogram, Frequency Polygon, Ogive, Pie-chart
- 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.
- Probability: Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.
- Theoretical Distributions: Theoretical Distributions: Binomial Distribution, Poisson distribution – Basic application and Normal Distribution – Basic applications
- Correlation and Regression: Correlation and Regression: Scatter diagram, Karl Pearson’s Coefficient of Correlation Rank Correlation, Probable Error, and Probable Limits. Regression lines, Regression equations, Regression coefficients
- Index Numbers: Uses of Index Numbers, Problems involved in the construction of Index Numbers, Methods of construction of Index Numbers
|
Business Economics and Business and Commercial Knowledge Syllabus
This part deals with the conceptual and theoretical understanding of Business Economics and using the same in solving business-related problems. The topics to be covered in this portion are as follows:
| Units |
Sub Topics |
| Business Economics |
- Theory of Production and Cost (i) Meaning and Factors of Production (ii) Laws of Production – The Law of Variable proportions and Laws of Returns to Scale, Producer’s equilibrium (iii) Concepts of Costs ─ Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs
- Theory of Demand and Supply (i) Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, income and cross elasticity (ii) Theory of consumer’s behavior – Marshallian approach and Indifference curve approach (iii) Meaning and determinants of supply, Law of supply and Elasticity of supply. (iv) Demand Forecasting
- Introduction to Business Economics (i) Meaning and Scope of Business Economics (ii) Basic Problems of an Economy and Role of Price Mechanism
- Price Determination in Different Markets (i) Various forms of markets – Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly (ii) Price determination in these markets
- Business Cycles: (i) Meaning (ii) Phases (iii) Features. (iv) Causes behind these Cycles
|
| Business Commercial Knowledge |
1. Business and Commercial Knowledge – An Introduction Nature of Business, Profession and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.2. Business Environment Micro and Macro Environment, Elements of Micro Environment – Consumers/Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment – Demographic, Economic, Political-legal, Socio-cultural, Technological, Global Environment.3. Business Organizations Overview of selected Indian and Global Companies.4. Government Policies for Business Growth Policies creating conducive business environment such as Liberalization, Privatization, and Foreign Direct Investment.5. Organizations Facilitating Business (i) Indian Regulatory Bodies – RBI, SEBI, CCI, IRDAI (ii) Indian Development Banks – NABARD6. Common Business Terminologies (i) Finance and Stock & Commodity Markets Terminology. (ii) Marketing Terminology. (iii) Banking Terminology. (iv) Other Business Terminology |
ICAI CA Foundation 2025 Syllabus Weightage
The sectional weightage of all four papers is as follows:
| Paper |
Section A |
Section B |
Section C |
| Paper 1 |
100 Marks |
- |
- |
| Paper 2 |
60 Marks |
40 Marks |
- |
| Paper 3 |
40 Marks |
20 Marks |
40 Marks |
| Paper 4 |
60 Marks |
40 Marks |
- |
