CA Inter Advanced Accounting AS Important Questions May 2026

Revising CA Inter Advanced Accounting can feel challenging as the exam approaches, especially with multiple Accounting Standards (AS) to cover. While concepts may seem clear during study, applying them accurately in exam questions often becomes difficult. 

Mistakes commonly occur in classification, calculations, and presentation, which can directly impact your scores. A clear approach is required to handle these issues. Here, we’ll highlight important Accounting Standards and expected question areas to simplify revision for CA Inter May 2026. 

Why Accounting Standards Are Important for CA Inter

Accounting Standards form a major part of Advanced Accounting. Most case-based questions include one or more AS concepts. You cannot rely only on theory. You must understand how to apply each standard in practical problems.

Many students lose marks because:

• They mix concepts of different standards

• They ignore the presentation format

• They write long answers without clarity

The right approach is to revise key concepts and practice expected questions.

Most Important Accounting Standards for May 2026

Below are the key AS that you should focus on:

CA Inter Advanced Accounting AS Important Questions for May 2026

Below are important questions based only on past exam questions and RTPs for May 2026. For the solution, detailed explanation, and more questions, watch the below video.

Question 1 (Inter May 2023 – 5 Marks)

Comment on the following cases:

a) Company has not complied with AS 2 but has disclosed it in notes. Management believes financial statements still show true and fair view.

b) Office building sold for ₹10,00,000. Amount received and possession transferred before year-end. Legal formalities pending. Sale not recorded and shown as advance.

c) Accounts prepared on cash basis but not disclosed.

d) Accounting policies disclosed in Director’s Report.

Question 2 (Inter May 2022 – 5 Marks)

State whether the following are True or False with reason:

a) Fundamental accounting assumptions are specifically stated in financial statements.
b) If fundamental assumptions are not followed, disclosure is not required.
c) Accounting policies should form part of financial statements.
d) Change in accounting policy without measurable effect need not be disclosed.

Question 3 (Inter Dec 2021 – 5 Marks)

a) Provision for non-moving stock changed from earlier method to technical evaluation.
Stock value ₹133.75 lakhs
Provision earlier ₹5 lakhs
Provision now ₹4 lakhs

b) Change in inventory valuation method from FIFO to weighted average.
Closing stock under FIFO ₹1,24,000
Closing stock under weighted average ₹1,15,000
NRV ₹1,54,000

Discuss disclosure requirements.

Question 4 (Inter Jan 2021 – 5 Marks)

Inventory details:

• Raw Material: 900 units, cost ₹100 per unit, replacement cost ₹80

• Work in Progress: 400 units, cost ₹245, further cost ₹50

• Finished Goods: 800 units, cost ₹295, selling price ₹280 with 5% expenses

Calculate value of inventory.

Question 5 (Inter May 2024 – 7 Marks)

Manufacturing company produces Polyester and Nylon. A by-product is also produced.

Given:

• Raw material cost ₹3,50,000

• Wages ₹1,60,000

• Fixed overheads ₹1,20,000

Calculate cost of production and treatment of by-product.

Question 6 (Inter Sep 2025 – 5 Marks)

Given:

• Opening stock of finished goods and raw material

• Purchases and production

• Labour ₹3,23,200

• Overheads ₹3,15,000

• Sales ₹11,20,000

Also:

• Expected production 45,000 units

• Selling price ₹22 per unit

• Replacement cost ₹11.50

Calculate closing stock value.

Question 7 (Inter July 2021 / RTP May 2024 – 5 Marks)

Classify the following:

a) Legal case filed after balance sheet date
b) Property sale agreement made before year-end but registered later
c) Business acquisition decided before year-end but financed later
d) Cash theft occurred before year-end but detected later

State whether they are contingencies, adjusting events, or non-adjusting events.

Question 8 (RTP Jan 2026)

Cases include:

a) Fire accident after year-end destroying stock worth ₹10,00,000
b) Legal claim filed for ₹20,00,000 after year-end
c) Cheques received before year-end but realised later

Give treatment as per AS 4.

Question 9 (Inter Nov 2023 / RTP Jan 2026 – 5 Marks)

Classify the following:

• Salary not provided in earlier year

• Property attachment

• New pension scheme

• Change in inventory reserve

• Litigation settlement

• Bad debts exceeding provision

• Change in law

• Capitalisation of interest

• Change in valuation model

• Government grant received

Preparation Strategy for May 2026

Follow a simple and clear plan:

1. Revise Concepts Daily: Focus on 2–3 AS every day.

2. Practice Questions: Solve past exam questions and RTPs.

3. Use Short Notes: Prepare quick revision points for each AS.

4. Focus on Weak Areas: Mark topics where you make mistakes.

5. Practice Presentation: Write answers in a structured format.

CA Inter Advanced Accounting requires understanding and application. You do not need to memorize everything. Focus on concepts, practice important questions, and revise regularly.