Best Books for CA Foundation Preparation (ICAI + Reference)
The CA Foundation exam is the first milestone in your Chartered Accountancy journey. Choosing the right books for preparation can make a huge difference - they decide how clearly you understand concepts and how well you practice exam-style questions.
While ICAI study material is the primary source (and should never be skipped), students often look for reference books for extra practice and simpler explanations. In this guide, we list the best books for CA Foundation preparation (2025-26 New Scheme), subject-wise.
Why ICAI Study Material is a Must
- All questions in CA Foundation come directly or indirectly from ICAI material
- Study Modules, RTPs (Revision Test Papers), and MTPs (Mock Test Papers) are non-negotiable
- Even if you use reference books, ICAI content must be revised 2–3 times before the exam
Subject-Wise Best Books for CA Foundation
Paper 1: Accounting
ICAI Module → Compulsory
Official study material from ICAI
Reference Books:
- CA Foundation Principles & Practice of Accounting by D.G. Sharma
- Accounting for CA Foundation by Taxmann
- Accounting for CA Foundation by M.P. Gupta & B.M. Aggarwal
Why? → Easy language, step-by-step illustrations, and practice problems.
Paper 2: Business Laws
ICAI Module → Compulsory
Official study material from ICAI
Reference Books:
- Business Laws for CA Foundation by Taxmann
- Business Law by Tulsian & Tulsian
Why? → Covers Contract Act, Sale of Goods Act, Partnership Act, and Company Law basics with examples.
Paper 3: Quantitative Aptitude (Maths, Stats, LR)
ICAI Module → Compulsory
Official study material from ICAI
Reference Books:
- Quantitative Aptitude by Taxmann's
- Quantitative Aptitude by Padhuka Publication
Why? → Shortcut methods, MCQ practice, and solved examples for speed.
Paper 4: Business Economics
ICAI Module → Compulsory
Official study material from ICAI
Reference Books:
- Business Economics by Taxmann's
- Business Economics by Padhuka Publication
Why? → Easy explanations of demand-supply, elasticity, cost of production, and macroeconomic policies.
How to Use These Books Effectively
1. Start with ICAI Module
Read every concept once from ICAI's official material.
2. Use Reference Book for Clarity
If you find a topic tough (e.g., Probability in Stats), use a reference book for easier explanation.
3. MCQ Practice Daily
Especially for Paper 3 & 4 (Objective).
4. Highlight & Note-making
Keep formula sheets, case-law keywords, and quick notes.
5. Revision
Minimum 3 rounds before exam.
Frequently Asked Questions
Q1. Is ICAI module enough for CA Foundation preparation?
Yes. Many rankers clear CA Foundation by only using ICAI material + mock tests.
Q2. Which reference book is best for CA Foundation Accounting?
CA Foundation Principles & Practice of Accounting by D.G. Sharma or Accounting for CA Foundation by Taxmann are highly recommended.
Q3. Should I buy all reference books?
Not necessary. Buy only if you face difficulty in ICAI material.
Q4. Are question banks useful for CA Foundation?
Yes, practice from ICAI RTP/MTP + one reference book question bank.
Conclusion
For CA Foundation 2025-26 (New Scheme), the ICAI study material is the Bible. Reference books are helpful for extra practice and conceptual clarity, but never replace ICAI modules. With the right mix of ICAI + selective reference books + mock tests, you can clear CA Foundation in your very first attempt.
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