ADVANCED ACCOUNTING IMPORTANT TIPS

Advance Accounts is one of the most scoring subjects in CA-IPCC.

Scoring 100 in that is also quite possible.

I gave both groups in Nov, 14 and it was my first attempt. Though I didn't get 80+ but I
secured exemption in both Accounts (61) and Advance Accounts (66).

It is a practical subject so you should stress 90% on practical stuff and when practical is
concerned your best friend is Practice Manual.

There are extremely high chances that 2 to 5 questions carrying 4 to 16 marks might come
from Practice Manual.

Coming to preparation.

1. Advanced Issues in Partnership -

Amalgamation of firms and companies, Sale and dissolution of Partnership firm

have somewhat same basic treatment structure with little changes.
You should solve basic problems to learn that treatment pattern. After that you just
need to solve the 1 or 2 difficult points in each and every question, rest the pattern
is same. Though it is quite big but more the practice more will be your command
over it.
Sums like calculation of a prior period, journal entries and post balance sheet can
come for 16 marks.
Try to understand the logic rather than mugging up. Practice Manual is highly
recommended in this.
2. Company Accounts -
a. ESOP, Buy back and Underwriting - These are bonus and very easy chapters. These
can fetch you bonus marks. You can do all these in 2–3 days even if you are doing
them for the first time.
b. Redemption of Debentures - The tough part (little bit) is only the calculation of
Purchase of own debentures. Rest it is easy and very much manageable.
c. Liquidation of Companies - It requires preparation of 2 statements. Learn the
format and treatment, practice some questions and it is done.
d. Amalgamation, Internal and External Reconstruction - You might have practiced it
a lot as it was in your Paper 1 too. Internal Reconstruction is extremely easy.
Journal Entries and Balance sheet and it is done.
Amalgamation and External Reconstruction are somewhat the same as was in
Paper 1 except some new topics like dissenting shareholders, etc. Refer Practice
Manual.
e. Banking and Insurance Companies - In insurance companies learning the formats
is very important. Generally GIC question comes in exam but LIC can come too.
Usually if the question is long, they’ll ask you to prepare only 1 account and it’s
schedules for 8 marks otherwise they can ask you to prepare max 2 accounts for
16 marks.
Banking company can have questions like preparation of accounts and
calculation of Capital (Tier I and II).
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3. Department and Branch Accounts

a. Department Accounts - Inter department transfers, calculation of profit,
preparation of Departmental Trading and P&L, General Trading and P&L and
Balance Sheet can come. It is little bit difficult but also has high chances of
coming in exam. Practice Manual can help. Refer your coaching compiler as well.
b. Branch Accounts - It is a difficult chapter but there are high chances of coming.
Preparation of Branch Account by 3 methods, IFO, NFO and Foreign branch, etc
are the topics. It requires good amount of practice to achieve command.
Practice Manual is again preferable.
4. Accounting Standards
a. AS - 4, 5, 26 and 29 - They are theory based AS. Try to learn the concept.
b. AS - 11, 12 16, 19 and 21 - They are majorly practical but have some theory portion
too. Practice their sums.

Generally questions that come from practical AS are case study questions.
Questions from theory based AS are generally directly concept based and there
are low but considerable chances that a case study question will come from
theory based AS.
If you think that the time is less, then strengthen what you have already prepared and try to
cover up as much as you can from the remaining portion.
The paper has choices. Choose wisely.
Lastly, don’t leave any question completely. Attempt as much as you know or even if you
don’ t know anything about it, just try to write whatever you understand from the question.

Study well and hard for your exams.

Good luck. :-)

Tips By – Shobit
 ADVANCED ACCOUNTING IMPORTANT TIPS

Paper 5: Advanced Accounting

1. AS ( Prepare All questions in study material & PM)

2. Insurance companies’ financial statement
3. Banking companies financial statements
4. Branch accounts OR Dept Accounts
5. Advanced issue in Partnership or Amalgamation (if asked in 1st group then
chances to ask by them is 70:30)
AS- 5,11,16,20 & 26, Amalgamation and conversion of partnership firm, ESOP, Buy
Back (Theory most probably), Underwriting, Debenture redemption reserve,
Internal Reconstruction, Insurance (Theory or P& L Account), Banking (P&L
Account or Provision), Electricity (Depreciation), Foreign Branch and Liquidation.

Preparation Tips :
1) The First and foremost topic to be selected is Accounting standards which
carries around 25-30 marks almost 30% of marks so concentrate more on this..
Standard wise Preference is as follows… • AS-4 • AS-5 • AS -12 • AS-20 • AS-19 •
AS-26 • AS-29 • AS-16 • AS-11

(mostly basics will ask in exams )

2) Now take on Topics part of Company Accounts which carries overall

weightage of 35-40 Marks and the topics are easy compared to partnership
accounts…. Topic wise Preference is as follows

• Amalgamation and Internal Reconstruction (In this topics 16 Marks Questions

are asked based on the paper asked in group I i.e if 16 Marks Q is asked from
Amalgamation in Group I then in second group 16 marks or 8 marks questions
are asked from Int.Reconstruction)

• Issue and Redumption of Debentures ( This topic is already covered in Group I

i.e AS-13 so students who passed Group I can just revise it once it is sufficient)

• Liquidation of Companies (problems are based on Prescribed formats)

• Buy Back of shares

• ESOP’s

3) Now If you are confident of doing Partnership Accounts you can go ahead
but it is better to choose Accounting for Banks, Insurance , Electricity as these
also cover up to 15-20 marks Preparation for this chapters is it is advisable to
 ADVANCED ACCOUNTING IMPORTANT TIPS

thoroughly prepare problems of the model asked in previous years (scanner)

and Practice Manual

Tip: Don’t waste time preparing lengthy formats as those are not of that
relevance
4) Now it is better to choose Partnership Accounts which carries weightage of 16
marks

5) As a final step prepare Branch and Departmental accounts carries

weightage of 6-8 Marks

Tips By - SuperProfs