CA FOUNDATION MATH & ECONOMICS EXAM MOCK TEST SERIES MAY 2019

CA Foundation – New Entry Scheme

The Institute of Chartered Accountants of India (ICAI) launched it’s new plan to make the entry-level in the form of CA Foundation.

CA Foundation Course  

CA Foundation Course for Exam to be held in May 2019

PAPER – 1 : PRINCIPLES AND PRACTICE OF ACCOUNTING

(One paper – Three hours – 100 Marks)

Objective:

To develop an understanding of the basic concepts and principles of Accounting and acquire the ability to apply the same in preparing financial statements, computing accounting ratios and simple problem solving.

Contents:

1. 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 Policies
   • Accounting as  a Measurement Discipline –  Valuation Principles, Accounting
   • Accounting Standards – Concepts and
   • Indian Accounting Standards – Concepts and Objectives .
2. Accounting Process
   • Books of Accounts
   • Preparation of Trial Balance
   • Rectification of
3. Bank Reconciliation Statement

Introduction, reasons, preparation of bank reconciliation statement.

4. Inventories

Cost of inventory, Net realizable value, Basis and technique of inventory valuation and record keeping.

5. Concept and Accounting of Depreciation

Concepts, Methods of computation and accounting treatment of depreciation, Change in depreciation methods.

6. 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) Joint Ventures for non-corporate entities

Meaning and Features of joint venture transactions, Distinction between joint venture and partnership, Methods of maintaining joint venture accounts.

{v)   Royalty accounts

Meaning of the term “Royalty” and Accounting Treatment thereof.

{vi) Average due Date

Meaning, Calculation of average due date in various situations.

{vii) Account Current

Meaning of Account Current, Methods of preparing Account Current.

7. 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.

8. Partnership Accounts
   • Final Accounts of Partnership Firms
   • Admiss ion, Retirement and Death of a Partner including Treatment of Goodwill
   • Introduction to LLPs and Distinction of LLPs from

9. Financial Statements of Not-for-Profit Organizations

Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Difference between Profit and Loss Account and Income and Expenditure Account. Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.

10. Introduction to Company Accounts
    • Definition of shares and debentures
    • Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
    • Statement of Profit and Loss and Balance Sheet as per Schedule Ill to the Companies Act,
11. Basic Accounting Ratios (profitability, solvency, liquidity and turnover)

Download Complete Syllabus of CA Foundation May 2019