PDF · Notes
Must Do LDR Questions for CA Inter Advanced Accounting (AS 16, AS 20, Amalgamation)
- Shared by
- Radhika J.
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 4 Nov 2026
Part of: CA InterAdv Accounting
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This note is a compilation of must-do long-answer questions for CA Inter Advanced Accounting, compiled by CA. Jai Chawla. The first pages carry worked solutions on capitalisation of borrowing costs including exchange difference under AS 16, computation of basic and diluted EPS with ESOPs and bonus issue under AS 20, and a balance sheet setup for an amalgamation question. It suits students preparing for the Sep 2026 attempt who want to practise solved questions from the standards and the amalgamation chapter.
What the notes cover
The preview shows solved questions in a step-by-step format. The AS 16 question works through capitalisation of land, demolition cost net of salvage, stamp duty and construction costs, then splits the exchange difference on a foreign currency loan between borrowing cost under AS 16 and the excess charged to profit and loss under AS 11. The AS 20 question computes earnings attributable to equity shareholders after preference dividend, basic EPS with bonus shares, and diluted EPS using the treasury stock method for employee share options. The amalgamation question gives balance sheets of two companies as the starting point for the workings.
How to use them for revision
Attempt each question on paper first, then compare with the given answer line by line. Pay attention to the layout of the EPS workings and the stepwise borrowing cost computation, since these are the parts that carry marks in exam answers. Revisit the amalgamation balance sheets after you have covered the accounting for amalgamation so that you can apply the same steps to the purchase consideration and reserve workings.
Who should read this
This note is useful for CA Inter students revising Advanced Accounting for the Sep 2026 exam, particularly those who want more practice on AS 16, AS 20 and amalgamation problems. It works best alongside your standard study material and the ICAI study text, as a set of solved questions for practice rather than a substitute for the full syllabus.
Key topics in these notes
- Capitalisation of borrowing costs under AS 16
- Exchange difference on foreign currency loans
- Basic EPS with bonus issue
- Diluted EPS and ESOPs under AS 20
- Preference dividend in EPS computation
- Amalgamation balance sheet workings
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Frequently asked questions
Which standards are covered in this LDR question set?
The preview covers AS 16 (borrowing costs), AS 20 (earnings per share) and an amalgamation question using two company balance sheets.
How is exchange difference treated for borrowing costs in this note?
The solution capitalises exchange difference only to the extent it equals the excess of local currency interest over foreign currency interest, and the balance is charged to profit and loss.
How is diluted EPS computed for employee share options here?
Options are assumed exercised at average fair value, and only the shares issued for no consideration are added to the weighted average share count.
Is this note useful for the Sep 2026 CA Inter exam?
It contains solved questions tagged for the Sep 2026 exam, so it is useful for practice on these topics.
How can I get the full PDF?
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