CA Inter Advanced Accounting January 2026 Question Paper: Case Scenario I (ZAN1)

The visible questions test carrying amount of an investment in the consolidated financial statements, current tax expense in an interim report for the second quarter, deferred tax asset or liability with future profit sufficiency, and revenue and expenses for a contract under AS 7 (Revised). The case also includes depreciation differences under the Income Tax Act, unamortised preliminary expenses and a GST penalty that affects deferred tax. Each question gives four options, so the page is useful for checking your method step by step.

Attempt the case scenario on paper first, timing yourself at the marks shown against each question. Then compare your working with the options and identify where your figures differ, such as applying equity pick-up on profits accruing evenly or using the 30 and 40 per cent slab on quarterly earnings. Students who revise this way get practice in combining several standards in one case, which is the pattern the Advanced Accounting paper tends to follow.

This page suits CA Inter students preparing for Advanced Accounting, particularly those working on consolidation, AS 7, AS 25 interim reporting and AS 22 deferred tax. Students revising for the January 2026 attempt or the next session will find it useful for case-based practice. The full paper continues beyond these first three pages and can be opened free in the Studycaller app.

• Investment in associate and equity method
• AS 7 (Revised) construction contracts
• AS 22 deferred tax assets and liabilities
• AS 25 interim financial reporting
• Current tax expense on quarterly profits
• Depreciation difference under Section 32