CMA Foundation Course Syllabus : Paper 2 Fundamentals of Financial and Cost Accounting (FFCA)

CMA Foundation Course Syllabus
Papers 2: FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (FFCA)
Marks: 100
Question Paper Pattern: 50 MCQs of 2 Marks each

Module No.	Module Description	Weight
	Section A: Fundamentals of Financial Accounting	70%
1	Accounting Fundamentals.	30%
2	Accounting for Special Transactions.	15%
3	Preparation of Final Accounts.	25%
	Section B: Fundamentals of Cost Accounting	30%
4	Fundamentals of Cost Accounting.	30%

SECTION A: FUNDAMENTALS OF FINANCIAL ACCOUNTING

1. Accounting Fundamentals.

1.1 Understanding of Four Frameworks of Accounting (Conceptual, Legal, Institutional and Regulatory) and Forms of Organization.

1.2 Accounting Principles, Concepts and Conventions.

1.3 Capital and Revenue Transactions - Capital and Revenue Expenditures, Capital and Revenue Receipts.

1.4 Accounting Cycle – Charts of Accounts and Codification Structure, Analysis of Transaction – Accounting Equation, Double Entry System, Books of Original Entry, Subsidiary Books and Finalisation of Accounts.

1.5 Journal (Day Books; Journal Proper – Opening, Transfer, Closing, Adjustment and Rectification Entries), Ledger.

1.6 Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement.

1.7 Trial Balance.

1.8 Adjustment Entries and Rectification of Errors.

1.9 Depreciation (Straight Line and Diminishing Balance Methods only).

1.10 Accounting Treatment of Bad Debts and Provision for Doubtful Debts.

2. Accounting for Special Transactions.

2.1 Consignment.

2.2 Joint Venture.

2.3 Bills of Exchange (excluding Accommodation Bill, Insolvency).

3. Preparation of Final Accounts.

3.1 Preparation of Financial Statements of Sole Proprietorship.

3.1.1 Income Statement, Balance Sheet.

3.2 Preparation of Financial Statements of a Not-for-Profit Organisation.

3.2.1 Preparation of Receipts and Payments Account.

3.2.2 Preparation of Income and Expenditure Account.

3.2.3 Preparation of Balance Sheet.

SECTION B: FUNDAMENTALS OF COST ACCOUNTING

4. Fundamentals of Cost Accounting.

4.1 Meaning, Definition, Significance of Cost Accounting, its Relationship with Financial Accounting.

4.2 Application of Cost Accounting for Business Decisions.

4.3 Definition of Cost, Cost Centre, Cost Unit and Cost Drivers.

4.4 Classification of Costs (with reference to Cost Accounting Standard 1).

4.5 Ascertainment of Cost and Preparation of Statement of Cost and Profit (Cost Sheet).

Also Read: CMA Foundation Syllabus for 2025 Exam

Paper 1: Fundamentals of Business Laws and Communication (FBLC)

Paper 2: Fundamentals of Financial and Cost Accounting (FFCA)

Paper 3: Fundamentals of Business Mathematics and Statistics (FBMS)

Paper 4: Fundamentals of Business Economics and Management (FBEM) 

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