CA Inter accounts important questions Jan 2027: 7 repeats
The CA Inter Advanced Accounting important questions for January 2027 are seven question types that ICAI has set in its last three Paper 1s with suggested answers: amalgamation, consolidated statements, the cash flow statement, internal reconstruction, buy-back, branch accounts and, in two of the three, a Schedule III balance sheet. These seven filled most of Questions 2 to 6 every time, and four of them also came as MCQs. Below is what ICAI asked you to prepare in each, where its examiners said marks were lost, and ICAI's January 2026 buy-back question worked step by step.
Paper 1 is in Group I, which ICAI's January 2027 exam notification (PDF) (opens in a new tab) puts on 2, 4 and 6 January 2027, 2 to 5 PM, with reading time from 1:45 PM. ICAI's own Paper 1 MTPs are on Thursday 19 November and Thursday 3 December 2026 (ICAI MTP schedule, PDF (opens in a new tab)). For the Accounting Standards side of the paper (Question 1 and most MCQs), read our AS-wise map of Paper 1; this post is about the long questions.
Where these CA Inter Advanced Accounting important questions come from
Every question below is from ICAI's own papers. All of them are free on ICAI's website, icai.org:
| Attempt | ICAI file |
|---|---|
| September 2025 | Suggested answers (PDF) (opens in a new tab) |
| January 2026 | Suggested answers (PDF) (opens in a new tab) |
| May 2026 | Suggested answers (PDF) (opens in a new tab) |
| September 2026 | Question paper (PDF) (opens in a new tab) |
The September 2026 paper is out as a scanned question paper only, so the tables below use the three papers that come with ICAI's suggested answers; sit September 2026 as a full practice paper. The grouping into types is ours, not ICAI's. Every earlier Inter paper is listed in our CA Inter past papers.
One warning before you download any "important questions" PDF: Paper 1's syllabus now has three sections: the Framework and the AS (Section I), company accounts, meaning Schedule III, cash flow, buy-back and reconstruction (Section II), and branches (Section III) (ICAI syllabus and section-wise weightage, PDF (opens in a new tab)). Insurance claims, hire purchase and partnership accounts are not in it. A list that still has them was made for the old course.
The 7 question types in ICAI's last three Paper 1s
| Type | Sep 2025 | Jan 2026 | May 2026 |
|---|---|---|---|
| Amalgamation (AS 14) | Q4 | Q4, MCQ 15 | Q4, MCQ 15 |
| Consolidated statements (AS 21) | Q5 | Q5 | Q5(a) |
| Cash flow statement (AS 3) | Q3(a) | MCQs 11–14 | Q3(a), MCQ 12 |
| Internal reconstruction | Q6(b) | Q2 | Q3(b), MCQ 11 |
| Buy-back of securities | MCQs 11–14 | Q3(a) | MCQs 13–14 |
| Branch accounts | Q6(c) | Q6(c) | Q6(c) |
| Schedule III financial statements | Q2 | – | Q2 |
Two things to read from this:
- Questions 4 and 5 are the safest marks on the paper. Amalgamation was a full 14-mark Question 4 every time, and consolidation was Question 5 every time. You choose four of Questions 2 to 6, so these two are almost always in your four.
- Buy-back and cash flow move between the long questions and the MCQ cases. Prepare both as full sums: a long question one attempt becomes four 2-mark MCQs on the same facts the next.
Marks per chapter, counted the same way, are in our CA Inter chapter wise weightage for Jan 2027.
CA Inter amalgamation important questions: what ICAI asked
| Attempt | The question | What you had to prepare |
|---|---|---|
| Sep 2025 Q4 | Blue Ltd absorbs Yellow Ltd | Purchase consideration; Blue's balance sheet after absorption |
| Jan 2026 Q4 | B Ltd absorbs G Ltd | Journal entries in B's books; B's balance sheet after absorption |
| May 2026 Q4 | Blue and Green form a new company, BG Ltd | Debentures and shares to issue, from capital employed and an 8% return; BG's balance sheet immediately after |
The pattern: every question starts with what the buyer pays (the purchase consideration, or in May 2026 the shares and debentures to issue), then asks for the buyer's journal entries, its balance sheet, or both.
Where marks went (ICAI's examiners): in January 2026, "a majority of examinees faced difficulty in determining the purchase consideration", and the errors in goodwill then carried into the balance sheet (January 2026 examiners' comments, PDF (opens in a new tab)). In May 2026 the debentures came out wrong because of "incorrect computation of net assets and capital employed" (May 2026 Group I volume, PDF (opens in a new tab)). Both sets of comments sit at the end of ICAI's suggested-answer volumes on icai.org. Write the purchase consideration as a separate working note, so a slip there costs you that note, not the whole question.
Consolidation (AS 21): Question 5, three times out of three
- September 2025: consolidated balance sheet of Seva and Meva (80% bought on 1 April 2024).
- January 2026: MN and RP, with a dividend paid out of pre-acquisition profit, Rs 80 lakh of intra-group goods still in stock, and Rs 280 lakh of RP's debentures held by MN.
- May 2026: a consolidated profit and loss statement for Glamour and Fashion, with intra-group sales, brokerage and consultancy fees to remove.
ICAI's January 2026 examiners wrote that "several examinees were unable to correctly determine the amounts of capital profits and revenue profits", and that the pre-acquisition dividend, done wrong, "adversely affected subsequent calculations". Before you open the statement, list every intra-group item on one line each: stock profit, receivables and payables, debentures, fees, dividends. Then split profits into capital and revenue as at the date of acquisition.
Cash flow statement (AS 3)
ICAI set a full statement in May 2026 and only the operating section in September 2025, where its answer gave three versions for three readings of the facts. In January 2026 the whole cash flow came as four MCQs on one company. The May 2026 examiners noted errors "in the treatment and classification of certain items". Decide operating, investing or financing for every line before you add anything.
Internal reconstruction
| Attempt | Marks | What you had to prepare |
|---|---|---|
| Sep 2025 Q6(b) | 4 | Journal entries (debentures settled partly in cash, partly by an asset) |
| Jan 2026 Q2 | 14 | Journal entries, Reconstruction Account, revised share capital in the notes |
| May 2026 Q3(b) | 8 | Journal entries, including contingent liabilities |
The marks swing from 4 to 14, but the question never left the paper. ICAI's May 2026 examiners found that many students "failed to mention the denomination of equity shares and preference shares in the respective ledger account heads". Write "Equity Share Capital (Rs 50) A/c", as ICAI's own answer does, not just "Share Capital A/c". It costs nothing and it's where marks were cut.
Buy-back important question: ICAI's January 2026 Q3(a), worked
ICAI's January 2026 examiners wrote: "While many examinees correctly applied two of the required tests, they failed to correctly apply the Debt-Equity ratio test." Here is that question, with the figures and the method from ICAI's January 2026 suggested answer (PDF) (opens in a new tab).
Facts (Rs lakh): 150 lakh equity shares of Rs 10 (capital 1,500). Reserves: capital reserve 380, securities premium 300, revaluation reserve 120, general reserve 1,800, profit and loss 150. Loans: 12% debentures 2,250, unsecured loans 1,200, current maturities 1,980. The company wants to buy back 30 lakh shares at 25% over the market price of Rs 16, that is Rs 20.
Test 1: shares outstanding. 25% of 150 lakh = 37.5 lakh shares.
Test 2: resources. Free reserves are securities premium, general reserve and profit and loss: 300 + 1,800 + 150 = 2,250. The capital reserve and revaluation reserve stay out. Capital plus free reserves = 3,750; 25% = 937.5; at Rs 20 a share = 46.875 lakh shares.
Test 3: debt-equity, the one students got wrong.
| Step | Rs lakh |
|---|---|
| Loans: 3,450 + 1,980 | 5,430 |
| Minimum equity after buy-back (2:1), 5,430 ÷ 2 | 2,715 |
| Present equity | 3,750 |
| Room to reduce equity, 3,750 − 2,715 | 1,035 |
| Equity lost per share bought back: face value 10 + premium 10 + Rs 10 moved to capital redemption reserve | Rs 30 a share |
| Maximum shares, 1,035 ÷ 30 | 34.5 lakh |
The trap: every share bought back costs equity Rs 30, not Rs 20. The Rs 10 transferred from free reserves to the capital redemption reserve is no longer a free reserve, so it leaves equity too. Divide by 20 and you get 51.75 lakh, which is wrong.
Conclusion: the least of the three is 34.5 lakh shares; 30 lakh is within it, so the buy-back is allowed. ICAI's entries (Rs lakh): equity share capital 300 and securities premium 300 to equity shares buy-back account 600; buy-back account 600 to bank 600; revenue reserve 300 to capital redemption reserve 300.
ICAI's January 2027 RTP has a buy-back question of a different shape: part of it is paid for by a fresh issue of preference shares, which changes the transfer to the capital redemption reserve. It's in our CA Inter RTP Jan 2027 guide, with the other RTP questions on branches, amalgamation and consolidation.
CA Inter branch accounting important questions: always Q6(c)
Branch accounts were Question 6(c) for 6 marks in all three papers, and nowhere else:
- September 2025: two branches, goods at cost plus 25%, debtors method.
- January 2026: one branch, cost plus 25%, stock and debtors system (stock, debtors, adjustment and profit and loss accounts).
- May 2026: a theory part (why goods go to branches at invoice price) and journal entries in an independent branch's books.
The examiners' notes repeat: in January 2026, difficulty "in applying the concept of loading", and returns by customers mixed up with returns by the branch; in May 2026, the company or branch account used in place of the Head Office Account. Practise all three methods once each. They take the same 10 minutes and cover every version ICAI has set.
Schedule III financial statements
A balance sheet under Schedule III came in September 2025 (14 marks) and May 2026 (balance sheet and profit and loss, 14). The May 2026 examiners named the exact disclosures that cost marks: trade receivables not classified correctly, and bank balances not split between scheduled and non-scheduled banks.
How these questions are marked
ICAI gives marks step by step: the working note for purchase consideration, each test in a buy-back, each ledger account in a branch question. A right final figure without workings can lose marks; a wrong figure with clear workings keeps the marks for the steps that were right. How this works across papers is in step marking in CA exams. To see it on paper, look at this checked CA answer sheet: a real student's answer sheet marked step by step, with the reason for every cut and the line that should have been written.
Frequently asked questions
What are the CA Inter Advanced Accounting important questions for Jan 2027?
Amalgamation, consolidated statements, cash flow, internal reconstruction, buy-back and branch accounts came in all three of ICAI's last Paper 1s with suggested answers, and a Schedule III balance sheet in two. Add three short AS sums for Question 1, which you must answer.
Which are the most important chapters in CA Inter Advanced Accounting?
By marks, amalgamation (a 14-mark Question 4 every time, plus a 2-mark MCQ in January and May 2026) and consolidation (Question 5 every time), then cash flow and internal reconstruction. The full table is in our chapter wise weightage post.
Are accounting standards important for CA Inter Advanced Accounting?
Yes: ICAI gives the AS and the Framework 55% to 65% of the paper. Which AS came in which question is in our AS-wise map of Paper 1.
Is branch accounting important for CA Inter?
It has been a 6-mark Question 6(c) in each of the last three papers with ICAI's suggested answers. ICAI's weightage for branches is 5% to 10%.
Are insurance claims and hire purchase in CA Inter Advanced Accounting?
No. ICAI's current syllabus for Paper 1 has the AS and the Framework, company accounts and branch accounts only.
Practise all seven in a full Paper 1
Sit ICAI's September 2026 Paper 1 in three hours first, then the RTP's long questions, then ICAI's MTPs on 19 November and 3 December, which you sit by logging in to ICAI's BoS Knowledge Portal, boslive.icai.org (dates and times in our Inter MTP schedule). Our CA Inter Advanced Accounting mock tests are full-syllabus Paper 1s on ICAI's latest pattern, with every January 2027 amendment tested. You write by hand, scan your sheets into one PDF and upload it, and you get back every mark you lost with its reason and the line you should have written. Paper 1 is part of our CA Inter Group I mock tests, and every level's CA test series and CA mock tests start from our home page.