Lecture notes
Chartered Accountant Notes on Foundation
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This note provides all the information about the foundations of Chartered accountancy
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Theoretical FrameworkFoundation Syllabus
The foundation level has four papers: Principles and Practice of Accounting, Business Laws and
Business Correspondence and Reporting, Business Mathematics and Logical Reasoning and
Statistics, and Business Economics and Business and Commercial Knowledge. The first two
papers are theory-based, while the other two are MCQ-based. Refer only to the study material
provided by ICI and maintain a 100-page book for concepts, formulas, and formats for revision.
Remember to practice regularly and maintain consistency in your studies.
Unit One: Basics of Accounts
Unit one has five chapters that cover the bookkeeping system, inventory valuation, depreciation,
bank reconciliation statement, and special transactions. We will also cover final accounts for
sole proprietors and non-manufacturing and manufacturing companies, partnership accounts,
NPO accounts, and company final accounts. Remember to use a black pen and maintain a
calculator, pencils, and erasers for drawing purposes. Consistency is key in this course, so
practice regularly and maintain your focus.
Understanding the Accounting Process
In accounting, the aim is to communicate about a business through financial statements. These
statements include the balance sheet and profit and loss account. The balance sheet shows
assets, liabilities, and capital, while the profit and loss account shows expenses and income.
The objective is to present all expenses together and all incomes together, along with all asset
liabilities and capital balances, in one place called the financial statement.
Financial Statements
● The balance sheet is a position statement
● The profit and loss account is a performance statement
,Transactions in accounting have two-fold effects- debit and credit. The rules of accounts have
been derived to give debit and credit effects. The traditional approach of accounting divides
accounts into three types- personal, real, and nominal. The personal account is based on due
relationships. The real account is based on tangible assets and liabilities, while the nominal
account is based on expenses and income.
Foundation Paper 2: Sec-A: BL | Topic: Introductory
Introduction to Business Law
Good afternoon dear students! Today, we will guide you through the introductory session for
Paper 2A Business Law at the Foundation Level. We will cover various aspects of the subject,
including publications, paper patterns, the nature of questions asked in exams, study
techniques, and practice methods. The sessions will be conducted in English, with translations
in Hindi whenever possible. Feel free to post your queries during the lecture. From 14th June
onwards, we will start our technical sessions, beginning with Unit 1 of the Indian Contract Act
1872.
First of all, congratulations on joining this prestigious course of becoming a Chartered
Accountant. To pass this course, you need two things: focus and belief in yourself. Remember,
you are the only person who can guide and help yourself in clearing this course. There is a
formula for turning your dreams into reality: goals plus commitment equals dreams come true.
Every morning, look in the mirror and affirm, "I am a Chartered Accountant, and I will become a
Chartered Accountant." These positive affirmations will have a significant impact on your body
and mind.
It is often said that entry into this course is easy, but the exit is tough. While this statement may
not be entirely true, it is a fact that the level of examination increases as you progress from the
Foundation to Intermediate and Final levels. Our suggestion is to focus only on the Foundation
level for now. The CA course is like a ladder, and you are advised to take one step at a time.
, Don't look at the top of the ladder; instead, focus on each step with dedication. Remember, there
are no shortcuts to success.
Importance of Business Law
Law is the code of conduct that regulates human behavior. In a society, there needs to be a set
of rules and regulations to control human conduct and ensure peace and order. Business Law
specifically deals with the regulations and transactions related to business, trade, occupation,
and profession.
At the Foundation level, we study five important acts that regulate business transactions:
● The Indian Contract Act 1872
● The Sale of Goods Act 1930
● The Partnership Act 1972
● The Limited Liability Partnership Act
● The Companies Act 2019
While these acts may seem intimidating at first, they are not entirely unfamiliar. Many of the
activities we engage in our daily lives involve legal relations and agreements. For example,
purchasing a book or a toothpaste, opening a bank account, or seeking medical services. These
transactions create legal obligations, and it is important to understand the rights and duties of
the parties involved.
Don't be afraid of this subject. It may be new to some of you, but with time and preparation, you
will find it interesting. The technical sessions will delve into each topic in detail, and we
encourage you to come prepared with your queries. Read the chapters beforehand to ensure a
thorough understanding.
The Indian Contract Act
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