CA Foundation Accounting 2026-27: Paper 1 Syllabus, Pattern & Preparation

CA Foundation Accounting is the first paper of the CA Foundation course and carries 100 marks. The syllabus covers the basic principles of accounting along with journal entries, ledgers, financial statements, partnership accounts and company accounts. You also need to understand how accounting concepts are applied while preparing and analysing financial statements.

The CA Foundation Accounting 2026-27 syllabus is divided into two modules. Module 1 covers the theoretical framework, accounting process, bank reconciliation statement, inventories, depreciation, bills of exchange and final accounts of sole proprietors. Module 2 includes not-for-profit organisations, incomplete records, partnership and LLP accounts, and company accounts.

The syllabus is designed to help you build a clear understanding of accounting concepts and apply them while solving practical questions. The official syllabus describes the objective as developing an understanding of accounting concepts and principles and applying them to financial statements and simple problem-solving.

CA Foundation Accounting 2026-27 Syllabus

The syllabus has two modules. Each module contains topics that move from basic accounting concepts to more advanced areas such as partnership and company accounts.

Module 1

Module 1 starts with the theoretical foundation of accounting and gradually moves towards the preparation of final accounts.

Chapter 1: Theoretical Framework

This chapter introduces the basic concepts and principles of accounting. It includes:

• Meaning and Scope of Accounting

• Accounting Concepts, Principles and Conventions

• Capital and Revenue Expenditures and Receipts

• Contingent Assets and Contingent Liabilities

• Accounting Policies

• Accounting as a Measurement Discipline

• Valuation Principles

• Accounting Estimates

• Accounting Standards

You should first understand the meaning of each concept before moving to questions based on its application.

Chapter 2: Accounting Process

This chapter focuses on the process of recording and organising accounting transactions. It includes:

• Basic Accounting Procedures and Journal Entries

• Ledgers

• Trial Balance

• Subsidiary Books

• Cash Book

• Rectification of Errors

The official syllabus also covers double-entry bookkeeping, books of original entry, posting into ledgers, balancing of accounts, trial balance and rectification of errors under the accounting process.

Chapter 3: Bank Reconciliation Statement

You will learn about the purpose and preparation of a Bank Reconciliation Statement. The chapter focuses on understanding differences between the bank balance shown in the cash book and the bank statement and preparing the reconciliation accordingly.

Chapter 4: Inventories

This chapter deals with inventory valuation. The major areas include:

• Meaning of Inventory

• Basis of Inventory Valuation

• Techniques of Inventory Valuation

• Cost of Inventory

• Net Realisable Value

• Record System

The official syllabus also includes the meaning, basis and technique of inventory valuation, cost of inventory and net realisable value.

Chapter 5: Depreciation and Amortisation

This chapter covers accounting treatment related to tangible and intangible assets. You will study:

• Meaning of Depreciation and Amortisation

• Difference between Tangible and Intangible Assets

• Concepts of Depreciation

• Methods of Computation

• Accounting Treatment

• Change in Depreciation Method

The syllabus includes methods of calculating depreciation and amortisation and the accounting treatment of changes in the depreciation method.

Chapter 6: Bills of Exchange and Promissory Notes

This chapter introduces Bills of Exchange and Promissory Notes. It covers their meaning and accounting treatment, along with accommodation bills.

Chapter 7: Preparation of Final Accounts of Sole Proprietors

This chapter focuses on preparing final accounts for sole proprietorship businesses. It is divided into two units:

Unit 1: Final Accounts of Non-Manufacturing Entities

Unit 2: Final Accounts of Manufacturing Entities

The topics include financial statements, closing adjustments, Trading Account, Profit and Loss Account and Balance Sheet. The syllabus covers final accounts of both manufacturing and non-manufacturing entities.

Module 2

Module 2 moves towards specialised areas of accounting. It covers not-for-profit organisations, incomplete records, partnership and LLP accounts, and company accounts.

Chapter 8: Financial Statements of Not-for-Profit Organisations

This chapter covers the preparation of financial statements for not-for-profit organisations. You will study:

• Receipt and Payment Account

• Income and Expenditure Account

• Balance Sheet

• Difference between Profit and Loss Account and Income and Expenditure Account

The official syllabus also includes the significance and preparation of these statements.

Chapter 9: Accounts from Incomplete Records

This chapter deals with accounting situations where complete accounting records are not available. You need to understand the methods used to prepare accounts from incomplete records.

Chapter 10: Partnership and LLP Accounts

This chapter contains six units:

1. Introduction to Partnership Accounts

2. Treatment of Goodwill in Partnership Accounts

3. Admission of a New Partner

4. Retirement of a Partner

5. Death of a Partner

6. Dissolution of Partnership Firms and LLPs

The official syllabus includes final accounts of partnership firms and LLPs, admission, retirement and death of a partner, treatment of goodwill, and dissolution of partnership firms and LLPs.

Chapter 11: Company Accounts

The final chapter of the syllabus deals with company accounting. It includes:

1. Introduction to Company Accounts

2. Issue, Forfeiture and Re-Issue of Shares

3. Issue of Debentures

4. Accounting for Bonus Issue and Right Issue

5. Redemption of Preference Shares

6. Redemption of Debentures

The syllabus also covers the definition of shares and debentures, their issue, forfeiture and reissue, and redemption of preference shares and debentures.

CA Foundation Accounting Exam Pattern

The CA Foundation Paper 1 Accounting paper carries 100 marks. The syllabus gives section-wise weightage to different areas of the subject.

The official syllabus permits a deviation of up to ±5% in the specified section-wise weightage.
The CA Foundation Accounting exam pattern shows that Accounting Process has a substantial share of the syllabus. Final accounts, partnership and LLP accounts, and company accounts also form important parts of the paper.

CA Foundation Accounting 2026-27 Preparation Strategy

A structured approach can make it easier for you to cover the syllabus and revise it effectively. Instead of studying every chapter with the same approach, divide your preparation into concepts, practical questions and revision.

1. Build Your Concepts First

Start with the Theoretical Framework and Accounting Process. Understand accounting concepts, principles, journal entries, ledgers and trial balance before moving to advanced chapters.

2. Practise Numerical Topics

Give regular practice to Bank Reconciliation Statement, Inventories, Depreciation and Amortisation, Bills of Exchange and Final Accounts. Focus on solving questions rather than only reading solved examples.

3. Focus on Partnership and Company Accounts

After strengthening the basics, practise goodwill, admission, retirement, death and dissolution under partnership accounts. Then cover shares, debentures, forfeiture, reissue and redemption under company accounts.

4. Maintain a Mistake Log

Record the errors you make while solving questions. Mention the correct treatment beside each mistake and revise this list regularly.

5. Revise Through Mixed Practice

Once you complete the syllabus, stop studying chapters only in isolation. Solve mixed questions from different topics to check whether you can identify the correct accounting treatment independently.

6. Practise Under Time Limits

During the final stage of preparation, solve practice papers within a fixed time. Review the questions where you lost marks or took too long.

The CA Foundation Accounting 2026-27 syllabus covers accounting concepts, accounting procedures, financial statements, partnership accounts and company accounts. The two-module structure allows you to progress from fundamental concepts to more advanced accounting applications.

Start with the basics and strengthen your understanding of journal entries, ledgers and trial balance. Then move towards final accounts, partnership and LLP accounts and company accounts. Regular practice, revision, and analysis of mistakes can help you prepare each part of the syllabus in a systematic manner.

Preparation Resources:

• CA Foundation Accounting Notes

• CA Foundation Online Batches