CA Foundation accounts important questions with ICAI answers
The CA Foundation accounts important questions for January 2027 are the ones ICAI set in all three 2026 papers: rectification of errors, a depreciation ledger, final accounts with adjustments, a partnership change and two company questions (share forfeiture every time, with preference share redemption or pro-rata allotment), plus six theory questions and eighteen True/False statements. Below is each one with the ICAI paper where it came, what ICAI's answer contained, and two traps worked from ICAI's own solutions.
Paper 1 is 100 marks in 3 hours, from 2 PM to 5 PM, with 15 minutes of reading time from 1.45 PM. ICAI's January 2027 schedule (PDF) (opens in a new tab) puts the four Foundation papers on 3, 5, 7 and 9 January 2027.
Where these important questions come from
Every question here is from ICAI's 2026 papers, plus one adjustment from its September 2026 RTP. Two papers come with ICAI's full worked answers, free on ICAI's website, icai.org:
| Attempt | ICAI file | Answers |
|---|---|---|
| January 2026 | Suggested answers (PDF) (opens in a new tab), Paper 1 on pages 1–35 | ICAI's |
| May 2026 | Suggested answers (PDF) (opens in a new tab), Paper 1 first | ICAI's, plus the examiner's comments at the end |
| September 2026 | Question paper (PDF) (opens in a new tab) | Ours, from ICAI's study material |
On 21 October 2026, ICAI's Foundation suggested answers page (opens in a new tab) still showed May 2026 as the newest, so every September 2026 answer below is ours.
The slot each question sat in is in our CA Foundation Jan 2027 Accounts mock test paper map; this post is the question list itself.
CA Foundation accounts important questions, chapter by chapter
Practise these first: each came in 2026, and each ICAI answer is free to check against. Question numbers are ICAI's.
| Chapter | Important question | Where ICAI set it in 2026 |
|---|---|---|
| 2. Accounting process | Rectification of errors, 8 to 10 errors, with a Suspense Account or after closing | Jan Q2(a) (12 marks), May Q2(b), Sep Q2(b) |
| 2. Accounting process | Journal entries with GST, or a subsidiary book | Jan Q1(c), May Q1(c) Returns Outward Book, Sep Q1(c) |
| 5. Depreciation | Machinery ledger with a sale or scrapping mid-year | Jan Q2 (WDV, 8 marks), May Q2(a) (with Provision for Depreciation and Disposal Accounts), Sep Q2(a) (SLM, grant, revaluation, fire) |
| 7. Final accounts | Trading and P&L Account and Balance Sheet from a trial balance with adjustments | Jan Q4(b), May Q4(b), Sep Q4(b) |
| 8. Not-for-profit | Receipts and Payments from I&E, I&E from Receipts and Payments, or subscriptions | Jan Q3(a) club, May Q5(b) health care society, Sep Q5(b) subscriptions |
| 9. Incomplete records | Final accounts from scattered balances | Jan Q5(b), May Q3(b), Sep Q3(a) |
| 3 and 4. BRS, inventories | BRS, or adjusted inventory and profit (5-mark OR) | Jan Q5(a), May Q5(a), Sep Q5(a) |
| 6. Bills | Accommodation bill with insolvency | Jan Q5(a)(ii) |
| 10. Partnership and LLP | Admission, retirement, death, change in ratio or dissolution | Jan Q3(b), Q4(a); May Q3(a), Q4(a); Sep Q3(b), Q4(a) |
| 11. Company accounts | Forfeiture (with reissue or calls in arrears), pro-rata allotment | Jan Q5(c), May Q6(a), Sep Q5(c) |
| 11. Company accounts | Redemption of preference shares with a fresh issue | Jan Q6(a), Sep Q6(a) |
| 11. Company accounts | Rights, bonus and debenture redemption with DRR | May Q5(c) |
Accounting process important questions are the safest marks. Rectification came in all three papers; May 2026's examiner noted many students only defined the trial balance in Question 6(b). ICAI's examiner comments on CA Foundation May 2026 lists the rest.
What is not in your syllabus
Some lists online still carry consignment, average due date or account current. None is in ICAI's current Paper 1 syllabus. Its syllabus pages (PDF) (opens in a new tab) list eleven chapters and also exclude incomplete records from ratios, the sinking fund method and buying back own debentures.
CA Foundation accounts final accounts important questions
Final accounts of a sole proprietor came as a 10-mark question in every 2026 paper, and the marks hide in the adjustments. Practise these, all from ICAI's 2026 papers and RTP:
- Goods sent on sale or return still with the customer but booked as a sale (January 2026 Q2(a), May 2026 Q5(a)(i), September 2026 Q4(b)).
- Invoices entered but the goods left out of stock, and March sales booked in April (May 2026 Q5(a)(i)).
- Goods given away as free samples with no entry (same question).
- Manager's commission on net profit after charging that commission, with provision for doubtful debts, depreciation and outstanding audit fees in the same question (September 2026 RTP Q9, PDF (opens in a new tab)); it came in the September 2026 paper's Q4(b) too.
- A capital item hidden in an expense, like wages paid to erect machinery (January 2026 Q2(a)(iii)) or electrical fittings inside purchases (May 2026 Q5(a)(i)).
Each adjustment touches two places; give each a working note, as ICAI's answers do.
CA Foundation accounts important theory questions
ICAI asked six theory questions in 2026, all 4 or 5 marks, all from Chapters 1 and 2.
| Paper | Question | Marks | What ICAI's answer had |
|---|---|---|---|
| Jan 2026 Q1(b) | What are Accounting Standards? Advantages and limitations | 4 | Meaning; uniformity and comparability; limits: hard choices between treatments, can't override the statute |
| Jan 2026 Q6(b) | Principal books of account; rules for posting journal entries to the ledger | 5 | Ledger as principal book; one account per head; "To" and "By"; debit in journal = debit in ledger with the credit account as reference |
| May 2026 Q1(b) | Accounting policies; characteristics for selection; when to change | 4 | Prudence, substance over form, materiality; change only if a statute or AS requires it, or for a more appropriate presentation |
| May 2026 Q6(b) | Trial balance; errors that stay even when it agrees | 5 | Seven types, from a missed entry to errors of principle and compensating errors |
| Sep 2026 Q1(b) | Fundamental accounting assumptions | 4 | Our answer: going concern, consistency, accrual; if not disclosed, assumed followed (Ch 1 Unit 2, para 2.6 (opens in a new tab)) |
| Sep 2026 Q6(b) | Advantages of the double entry system | 5 | Our answer: accuracy checked through the trial balance, profit and financial position found, detail for control, year-on-year comparison (Ch 2 Unit 1, para 1.2 (opens in a new tab)) |
Answer the whole question. May's examiner noted that many students explained accounting concepts when the question asked for accounting policies. In a two-part question, the part you skip scores nothing, however good the other part is.
CA Foundation accounts chapter 1 important questions
Three of the six came from Chapter 1, Theoretical Framework (standards, policies, assumptions). Its other units, such as capital and revenue items, contingent assets and liabilities, and valuation principles, also feed the True/False below. Unit 5 on accounting policies (PDF) (opens in a new tab) is short; read it once.
CA Foundation accounts important true or false questions
ICAI set eighteen True/False statements across 2026 and only four were true. The mark is in the reason, so learn the rule behind each one.
| Paper | Statement (short) | Answer and reason |
|---|---|---|
| Jan (i) | Money spent to reduce working expenses is revenue expenditure | False: it brings long-term benefit, so capital |
| Jan (ii) | Credit purchase of a fixed asset goes in the purchase book | False: only credit purchases of goods; assets go through the Journal |
| Jan (iii) | An obligation of uncertain amount, reliably estimated, is a liability | False: it is a provision |
| Jan (iv) | Nominal accounts are kept under single entry | False: single entry keeps cash book and personal accounts only |
| Jan (v) | Tribunal can wind up an LLP after three years of missed filings | False: five consecutive years |
| Jan (vi) | Securities premium can write off preliminary expenses (s. 52) | True |
| May (i) | Cost of inventories is all cost of purchase | False: plus conversion and other costs to bring them to present location and condition |
| May (ii) | Garner v Murray: solvent partners bear the loss in profit-sharing ratio | False: in capital ratio |
| May (iii) | Demolishing an old building to build a factory on the site is revenue | False: capital expenditure |
| May (iv) | Application money must be at least 25% of issue price (s. 39) | False: at least 5% of nominal value |
| May (v) | NPO additional information is adjusted in one place | False: two effects, double entry |
| May (vi) | Cash book is a subsidiary book as well as a principal book | True |
| Sep (i) | Choosing FIFO or weighted average is not an accounting policy | False: the method selected is the policy (Ch 1 Unit 5 (opens in a new tab)) |
| Sep (ii) | Wrong account, wrong side or wrong total is an error of principle | False: errors of commission (Ch 2 Unit 6 (opens in a new tab)) |
| Sep (iii) | The cash book's discount column doesn't record trade discount | True: it records cash discount (Ch 2 Unit 5 (opens in a new tab)) |
| Sep (iv) | DRR of 15% is adequate for an unlisted company's public issue | False: 10% of outstanding debentures (Ch 11 Unit 6 (opens in a new tab)) |
| Sep (v) | An NPO capitalises life membership fees | True: capital receipt, added to the capital fund (Ch 8 (opens in a new tab)) |
| Sep (vi) | Bonus shares can come from revaluation reserves | False: never from revaluation reserves (Ch 11 Unit 4 (opens in a new tab)) |
January and May answers are ICAI's; September's are ours, each with the study material line linked. Note the repeat: debenture redemption reserve for an unlisted company came in May's Question 5(c) and again in September's True/False.
Two traps, worked from ICAI's answers
1. Sale or return booked as a sale (January 2026, Q2(a)(vii))
Question: Goods worth ₹16,000 sent on sale or return were entered in the Sales Book. At year end the customer could still return them. Gross profit is 25% on sales. Rectify in the next year.
- Cost of the goods = 16,000 − 25% of 16,000 = ₹12,000.
- ICAI's entry: Inventory A/c Dr 12,000; Profit and Loss Adjustment A/c Dr 4,000; To Customer A/c 16,000.
The trap is reversing ₹16,000 to Sales. The year is closed, so the profit goes to the Profit and Loss Adjustment Account and the goods come back at cost.
2. Drawings of goods with GST (January 2026, Q1(c)(ii))
Question: Goods costing ₹10,000, bought with CGST and SGST at 9% each, were taken for personal use.
- ICAI's entry: Drawings A/c Dr 11,800; To Purchases A/c 10,000; To Input CGST A/c 900; To Input SGST A/c 900.
The trap is debiting Drawings with only ₹10,000. The input tax credit taken at purchase has to be reversed, so it goes into Drawings too.
One more from company accounts (May 2026, Q6(a)): Mr. Mohan applied for 5,000 shares in a category allotted 80,000 out of 4,00,000, so he got 1,000. Forfeited after paying ₹4 a share towards capital and reissued at ₹9, they left ₹3,000 for capital reserve (9,000 + 4,000 − 10,000), by ICAI's working.
Where to get CA Foundation accounts important questions PDF, free
ICAI's own files are the best question bank, and all of them have answers. In this order:
- The 2026 suggested answers linked above. Older papers are on our CA Foundation past year question papers page.
- The RTP. For January 2027, ICAI's study material notice (PDF) (opens in a new tab) names the August 2024 edition (Reprint August 2025 onwards) plus the RTP for January 2027. On 21 October 2026, the RTP list on boslive.icai.org still showed September 2026 as the newest; that September 2026 Paper 1 RTP (opens in a new tab) has nine True/False statements and practice questions across the chapters. More are on our CA Foundation RTP page.
- The MTPs. ICAI's notice of 21 October 2026 fixes the January 2027 Paper 1 MTPs on Tuesday 1 December (Series I) and Monday 14 December 2026 (Series II), 2 PM to 5 PM (ICAI announcement, PDF (opens in a new tab)). All four papers' dates are in our CA Inter and Foundation MTP Jan 2027 schedule. Past ones are on our CA Foundation MTP page.
- The study material's own exercises. Read ICAI's corrigendum of 25 August 2026 (PDF) (opens in a new tab) against your printed copy first. Every chapter is on our CA Foundation study material page.
Write the important questions in a full paper
Knowing the questions is half of it; writing them in 3 hours with working notes is the other half. Our CA Foundation Accounting mock tests are full Paper 1s, brand-new for January 2027 and set on ICAI's pattern; across the mocks every chapter comes up, with more weight on what ICAI asks most.
Write by hand, scan the sheets and upload one PDF. Each line is checked on 50+ parameters, and within 24 hours you get step-wise marks the ICAI way, a reason beside every mark cut with the line you should have written, and suggested answers with every working note. When to write each mock before January is in our CA Foundation Jan 2027 mock test plan.
Frequently asked questions
Are CA Foundation accounts questions repeated?
Ideas repeat, figures don't. In 2026, rectification, a depreciation ledger, a partnership change and two company questions came every time, and debenture redemption reserve came twice.
Which chapters are most important in CA Foundation Accounts?
Company accounts, the accounting process and partnership and LLP carried the most marks in every 2026 paper. The chapter-wise counts are in our CA Foundation Jan 2027 chapter wise weightage.
Is consignment in the CA Foundation Accounts syllabus?
No. ICAI's current Paper 1 syllabus has eleven chapters, from theoretical framework to company accounts, and consignment isn't one of them.
How do I write a True/False answer for full marks?
Two lines: the verdict, then the rule behind it, in the study material's words. How part marks are given is in step marking in CA exams.
Your next step
Take ICAI's May 2026 Paper 1, write the theory and True/False parts first, and mark them against ICAI's answer. Then write a full paper under the clock. All four Foundation papers are in our CA Foundation test series, and full CA mock tests for every level are on the CA test series home page.