Analysis of CA Inter Advanced Accounts (New Course) Nov 19 Paper

Nitin Goel 
on 07 December 2019


Being the last exam of CA Inter this time due to its Postponement, Advanced Accounts exam had a relevance of its own. It's important to maintain your energy levels till the last exam & it being a practical examination, it is important to ensure a good score which helps in convincingly passing the group & also in getting a Rank.

 

CA Inter Advanced Accounts (New Course) Examination this time was a 20 page Question Paper so needless to say was a lengthy one, however the level of the examination was not very difficult. Can be referred to as of moderate difficulty. My general analysis of the examination is as follows:

Examination being a lengthy one, students was supposed to maintain good speed throughout without compromising on the working notes part.

Many questions were asked from Accounting Standards.

No questions were asked from chapters like Accounts of Insurance Companies and Amalgamation &no questions were asked from certain Accounting Standards like AS 7, AS 18 & AS 24

No major new points were asked in the paper. All the questions were covered in the classes thoroughly.

However there were certain questions that students generally tend to leave while revising the concepts considering them to be not important. So it's necessary not to leave any type of concept while revising as unexpected points/questions also come in exams

Going question by question, following can be analyzed about the exam :

Q1 - was compulsory for 20 marks covering 4 subparts of 5 Marks each. It was entirely from AS as per the general trend.

a) was from AS 29relating to computation of Provision in case of warranty.
b) was from AS 26 on treatment of various expenditures & their accounting.
c) was from AS 9 on revenue recognition in various scenarios.
d) was from AS 20 relating to computation of EPS in case of Right Issue.

The next 5 questions were of 20 marks each as well, out of which any 4 were to be attempted.

 

Q2 - 2 Parts (Both the parts were relatively easy)

- 1st Part (15 marks) relating to Buy Back of Shares requiring Journal entries & preparation of Balance Sheet after buyback.
- 2nd Part (5 marks) relating to ESOP requiring journal entries.

Q3- Both the parts of these questions were quite easy

a) 1st Part (15 marks) from Internal reconstruction requiring Journal entries & preparation of Balance Sheet after the scheme of reconstruction.
b) 2nd Part (5 marks) was from Liquidation of Companies related to computation of Liquidator's Remuneration.

Q4- 3 Parts (10+5+5)

a) 1st Part (10 marks)was from Banking Companies requiring Preparation of P&L Account with comparatives.
b) 2nd Part (5 marks) was from Mutual Fund requiring basic journal entries
c) 3rd Part (5 marks again) was from Banking Companies relating to concept of Cash Reserve Ratio (CRR)

Q5 - Had 2 sub parts of 10 Marks each

a) Was from Consolidated Financial Statements relating to preparation of Balance Sheet of subsidiary; point of emphasis being subsidiary's balance sheet needs to be aligned with same accounting policy as that followed by holding company.

b) Was from Valuation of Goodwill requiring goodwill computation as per Super Profits method. Student needs to properly determine Future Maintainable Profits & Capital Employed.

Q6 - Had an internal choice as well wherein out of 5 sub parts, any 4 were to be attempted.

a) Was from Guidance Note of Schedule III to Companies Act 2013 requiring classification of rental income under Revenue from Operations or Other Income.
b) was from Underwriting on the determination of Underwriter's liability.
c) Was from Consolidated Financial Statements on computation of Minority Interest.
d) was from NBFC (theory question) on Income recognition norms
e) was from AS 19 (Lease) on determination of Finance Lease or Operating Lease under different cases.

CHAPTER WISE MARKS BREAKUP:

 

TOPIC

MARKS

Accounts of Banking Companies

15

Accounts of Insurance Companies

0

Liquidation of Companies

5

Internal Reconstruction

15

Amalgamation

0

Underwriting

5

Mutual Fund

5

NBFC

5

Buyback of Shares

15

ESOP

5

Valuation of Goodwill

10

Consolidation

15

Accounting Standards& Guidance Notes

30

Total

125

All in all, as I stated earlier, we can't say that this examination had anything surprising for the student in it, but it must have really tested students' ability to complete the examination in time. Such an examination can be conquered with regular practice and practicing questions and past year papers with time boundations at the preparation stage.

To the students who appeared for the examination, I would only advice to let go however the examination went for them – good or bad and now just take a break after your rigorous study schedules of the last few months. CA doesn't test you only on your preparation but tests your mental stability and strength to keep your calm in the time of extreme excitement or extreme disappointment. On that note - Best of Luck for the results and may you fair well!!

To enroll Advanced Accounting (CA Inter) subject of the author: Click Here


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