Darshan Makwana

Dear CA Intermediate Aspirants, There is no time left to revise all these topics in detail. So, just go through the following topics quickly as an overview. Don’t spend too much time on them: 📌 Buy-back of Securities – Journal Entries 📌 Internal Reconstruction – Journal Entries 📌 Branch Accounting – including Foreign Branch 📌 AS 2 – Inventory Valuation 📌 AS 3 – Cash Flow Statement 📌 AS 7 – Construction Contracts 📌 AS 13 – Accounting for Investments 📌 AS 20 – Earnings Per Share 📌 AS 29 – Provisions, Contingent Liabilities & Contingent Assets ➕ Also revise the above-mentioned important points. 👉 Just do a quick reading/overview of these so that you can recall the concepts and attempt questions if they appear in the exam. 🎯 If you cover these properly along with your other preparation, it can help you score at least 40 marks easily. ⚠️ Do not go into depth now. Focus on quick revision, key concepts, journal entries and recall.

That's it from my side :)

📊 AS 12 – Accounting for Government Grants ✍️ Remember the basic classification: ❓ Grant related to Revenue → Recognise in P&L over the periods necessary to match the related costs ❓ Grant related to Fixed Asset → Treat according to the prescribed asset-related treatment ❓ Grant received for a specific purpose → Match it with the related expense/asset 💡 Exam Trick (Very Important ⚡) In the exam, follow these steps: 👉 Step 1: Identify the purpose of the Government Grant 👉 Step 2: Decide whether it is related to Revenue or Fixed Asset 👉 Step 3: Apply the appropriate recognition and presentation treatment 👉 Step 4: Check whether any conditions attached to the grant are fulfilled 🧠 Golden Lines (for MCQs + Theory): 📌 Revenue Grant → Recognise in P&L to match related costs 📌 Asset Grant → Deduct from cost of asset OR treat as deferred income, as permitted under AS 12 📌 Grant for a specific fixed asset → Related to that specific asset 📌 Grant towards promoter’s contribution → Capital Reserve 📌 Grant should not be recognised until there is reasonable assurance that conditions will be complied with and the grant will be received ⚡ Easy Memory Trick: Purpose → Classify → Recognise → Match → Present 🎯 Pro Tip: In the exam, first identify what the grant is meant for. Don’t directly treat every government grant as income—the purpose and conditions of the grant determine its accounting treatment.

📊 AS 29 – Provisions, Contingent Liabilities & Contingent Assets ✍️ Remember the 3️⃣ conditions for Provision: ❓ Present Obligation → There must be a present obligation from a past event ❓ Probable Outflow → Settlement is probable to require an outflow of resources ❓ Reliable Estimate → Amount can …

📊 AS 13 – Accounting for Investments ✍️ Remember the basic classification: ❓ Current Investment → Held for short-term purpose ❓ Long-term Investment → Investment other than current 💡 Exam Trick (Very Important ⚡) In the exam, follow these steps: 👉 Step 1: Identify whether the investment is Curren…

📊 AS 20 – Earnings Per Share (EPS) ✍️ Remember the basic EPS formula: Basic EPS = Profit attributable to Equity Shareholders ÷ Weighted Average Number of Equity Shares 💡 Exam Trick (Very Important ⚡) In the exam, don’t overcomplicate EPS. Just follow these steps: 👉 Step 1: Calculate Profit attributable to Equity Shareholders 👉 Step 2: Adjust profit for Preference Dividend 👉 Step 3: Calculate Weighted Average Number of Equity Shares 👉 Step 4: Apply the EPS Formula 👉 Step 5: For Diluted EPS, consider potential equity shares that are dilutive 🧠 Golden Line (for MCQs + Theory): “EPS = Profit available to Equity Shareholders ÷ Weighted Average Equity Shares.” ⚡ Remember: • Preference Dividend → Reduce from Profit • Bonus Issue / Rights Issue → Adjust Shares retrospectively • Part-year Issue → Take time-weighted shares 🎯 Pro Tip: First calculate the numerator (Profit), then calculate the denominator (Weighted Average Shares), and finally divide. This makes EPS questions much easier and avoids calculation mistakes.

📘 Accounts – Hot Topics for September, 2026 exams 🔥 ✍️ Focus in this priority order 👇 🔹 Buy Back of Securities / Internal Reconstruction ➡️ Weightage: 4–10 Marks 🔹 Branch Accounting (including Foreign Branch) ➡️ Weightage: ~6 Marks 🔹 AS 3 – Cash Flow Statement (Indirect Method) ➡️ Weightage: ~6 Marks 🔹 AS 14 – Amalgamation of Companies ➡️ Weightage: ~14 Marks 🔹 Financial Statements of Company ➡️ Weightage: 10–14 Marks 🔹 AS 21 with AS 23 / 27 – Consolidated Financial Statements ➡️ Weightage: 10–14 Marks 💡 Pro Tip: Start with low-weight topics for quick wins, then move to heavy chapters. Focus on formats + working notes + adjustments = maximum scoring 💯

📘 Internal Reconstruction – Questionnaire (Exam Revision) ❓ When do we use Capital Reduction A/c in Internal Reconstruction? 👉 Capital Reduction A/c is used when the company undertakes internal reconstruction involving reduction of share capital or sacrifice by stakeholders (shareholders, creditors, debenture holders). It is used to record reconstruction gains. ❓ What items are credited to Capital Reduction A/c? 👉 The following items are credited: • Reduction in share capital • Waiver / sacrifice by creditors or debenture holders • Reduction in liabilities • Profit on revaluation of assets ❓ For which purposes is the balance of Capital Reduction A/c utilised? 👉 It is used to write off: • Accumulated losses (Debit balance of P&L) • Fictitious assets (Preliminary expenses, etc.) • Goodwill • Overvalued assets ❓ How is accumulated loss written off during Internal Reconstruction? 👉 By passing the entry: Capital Reduction A/c Dr.   To P&L A/c (Dr. balance) ❓ What is the accounting treatment of overvalued assets in Internal Reconstruction? 👉 Overvalued portion is reduced by: Capital Reduction A/c Dr.   To Asset A/c ❓ When is Reconstruction A/c opened and how is it different from Capital Reduction A/c? 👉 Reconstruction A/c is opened for working / calculation purposes (memorandum account) while preparing the scheme. 👉 Capital Reduction A/c is the actual account recorded in books. ❓ How are liabilities reduced or settled under an internal reconstruction scheme? 👉 When liabilities are reduced: Liability A/c Dr.   To Capital Reduction A/c 👉 If settled at a lower value, the difference (gain) is credited to Capital Reduction A/c. ❓ How is the balance of Capital Reduction A/c transferred after completing all adjustments? 👉 Remaining balance (if any) is transferred to: Capital Reduction A/c Dr.   To Capital Reserve A/c 💡Pro Tip: Always identify Credits (gains) and Debits (write-offs) of Capital Reduction A/c first—this makes numericals easy and reduces mistakes.

📘 AS 7 – Top 5 Practical Question Areas (Exam Focus) ✍️ Most asked in numerical problems 👇 1️⃣ Percentage of Completion Method Calculation based on cost incurred / total estimated cost, and recognition of contract revenue, cost & profit. 2️⃣ Work Certified vs Work Uncertified Treatment in Contrac…

📊 AS 3 – Cash Flow Statement (Indirect Method) ✍️ Remember the + / − rules: ❓ Increase in Liabilities = + (Add) ❓ Increase in Assets = − (Less) ❓ Decrease in Liabilities = − (Less) ❓ Decrease in Assets = + (Add) 💡 Exam Trick (Very Important ⚡) In the exam, don’t overcomplicate it. Just follow these steps: 👉 Step 1: Identify whether it is an Asset or Liability 👉 Step 2: Identify whether it is an Increase or Decrease 👉 Step 3: Apply the rule (+ / −) 👉 Step 4 (Final Step): Place it in the correct activity: ○ Operating Activity ○ Investing Activity ○ Financing Activity 🧠 Golden Line (for MCQs + Theory): “Increase in Current Assets is deducted and increase in Current Liabilities is added.” 🎯 Pro Tip: First decide the sign, then decide the activity — this avoids confusion and saves time in exams.

🚨 TOP 10 MOST IMPORTANT ACCOUNTING STANDARDS – SEPTEMBER 2026 🚨 1. AS 2 – Valuation of Inventories 2. AS 7 – Construction Contracts 3. AS 10 – Property, Plant and Equipment 4. AS 12 – Accounting for Government Grants 5. AS 13 – Accounting for Investments 6. AS 19 – Leases 7. AS 20 – Earnings Per Sh…

🚨 IMPORTANT FOR CA INTERMEDIATE – PAPER 1: ADVANCED ACCOUNTING 🚨 Dear CA Intermediate Aspirants, The combination of the following 5 chapters and Accounting Standards carries an approximately fixed weightage of 50 MARKS in almost every attempt of CA Intermediate Paper 1 – Advanced Accounting: 1. AS 3 – Cash Flow Statement 2. AS 14 – Amalgamation of Companies 3. AS 21 – Consolidated Financial Statements 4. Financial Statements of Companies 5. Branch Accounting (Including Foreign Branch) 🎯 Focus strongly on these 5 topics to cover approximately 50 marks in this last 1.5 Days! These chapters can be a game-changer in your CA Intermediate Advanced Accounting preparation.

CA INTERMEDIATE CORPORATE AND OTHER LAWS [LAW] NEW COURSE DESCRIPTIVE PART PAST EXAMS ANALYSIS BY DARSHAN MAKWANA FOR SEPTEMBER, 2026

CA INTERMEDIATE ADVANCED ACCOUNTING [ACCOUNTS] NEW COURSE PAST EXAMS ANALYSIS BY DARSHAN MAKWANA FOR SEPTEMBER, 2026

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