CA Foundation · May 2026 · Paper 1
CA Foundation Accounting May 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
| Chapter | Questions | Marks | Share |
|---|---|---|---|
| Company Accounts | 6 | 54 | 23% |
| Partnership and LLP Accounts | 6 | 44 | 18% |
| Accounting Process | 8 | 42 | 18% |
| Final Accounts of Sole Proprietors | 4 | 24 | 10% |
| Depreciation and Amortisation | 2 | 20 | 8% |
| Accounts from Incomplete Records | 2 | 20 | 8% |
| Inventories | 4 | 14 | 6% |
| Financial Statements of Not-for-Profit Organisations | 4 | 14 | 6% |
| Theoretical Framework | 2 | 8 | 3% |
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a)(i) | 2 | True or false with reasons: which costs form part of the cost of inventories | Inventories |
| 1(a)(ii) | 2 | True or false with reasons: sharing of an insolvent partner's capital deficiency under the Garner v Murray rule | Partnership and LLP Accounts |
| 1(a)(iii) | 2 | True or false with reasons: classifying demolition cost incurred for new construction as capital or revenue expenditure | Final Accounts of Sole Proprietors |
| 1(a)(iv) | 2 | True or false with reasons: statutory minimum application money on issue of shares | Company Accounts |
| 1(a)(v) | 2 | True or false with reasons: how adjustments are reflected in final accounts of a not-for-profit organisation | Financial Statements of Not-for-Profit Organisations |
| 1(a)(vi) | 2 | True or false with reasons: dual nature of the cash book as book of original entry and ledger | Accounting Process |
| 1(b) | 4 | Meaning of accounting policies, factors guiding their selection, and when a change in policy is permitted | Theoretical Framework |
| 1(c) | 4 | Preparing a returns outward book from mixed transactions, excluding cash and asset returns and handling trade discount | Accounting Process |
| 2(a) | 10 | Machinery, provision for depreciation and asset disposal accounts under written down value with a part sale and new addition | Depreciation and Amortisation |
| 2(b) | 10 | Rectification entries for a set of errors where the trial balance difference was parked in a suspense account | Accounting Process |
| 3(a) | 10 | Admission of a partner into an LLP: revaluation, goodwill brought in cash, capital readjustment through current accounts, new balance sheet | Partnership and LLP Accounts |
| 3(b) | 10 | Preparing trading, profit and loss account and balance sheet from bank records and opening statement of affairs | Accounts from Incomplete Records |
| 4(a) | 10 | Death of a partner: goodwill on average profits, profit till death, joint life policy, revaluation and capital accounts | Partnership and LLP Accounts |
| 4(b) | 10 | Trading and profit and loss account and balance sheet from a trial balance with depreciation, provisions, accruals and loss by fire | Final Accounts of Sole Proprietors |
| 5(a)(i) | 5 | Adjusting closing inventory and net profit for cut-off errors, free samples and goods sent on sale or return | Inventories |
| 5(a)(ii) OR | 5 | Correcting the cash book balance and then reconciling it with the bank statement balance | Bank Reconciliation Statement |
| 5(b) | 5 | Income and expenditure account from receipts and payments with subscriptions, medicine stock and depreciation adjustments | Financial Statements of Not-for-Profit Organisations |
| 5(c) | 10 | Journal entries for a rights offer, bonus issue and redemption of debentures at a premium using the DRR investment | Company Accounts |
| 6(a) | 15 | Issue of shares at premium with pro-rata allotment, forfeiture and reissue at discount, with application money working | Company Accounts |
| 6(b) | 5 | Meaning of trial balance and types of errors not revealed even when it agrees | Accounting Process |
What stood out
- Company Accounts and Partnership and LLP Accounts together carried about 49 of the 120 marks on offer, so the two heavy practical chapters again decided the paper.
- Accounting Process appeared in four places (compulsory statements, a returns book, a 10-mark rectification question and trial balance theory), rewarding students strong in basics.
- Question 1(a) spread six short true-or-false items across six chapters, so no chapter could safely be skipped for the compulsory question.
- Bank Reconciliation Statement appeared only as an internal choice in 5(a), while Inventories was tested both in theory and through a cut-off adjustment problem.
- Theory was limited to roughly 21 marks; the rest was computational, with LLP admission and death of a partner both set as full 10-mark problems.
Practise the chapters that carried the marks
Company Accounts, Partnership and LLP Accounts, Accounting Process: study guides and practice questions in the CA Foundation format.