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100+ Free CMA Inter Paper 10 Practice Questions

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2026 Statistics

Key Facts: CMA Inter Paper 10 Exam

100

Total Marks

ICMAI Syllabus 2022

3 hrs

Exam Duration

ICMAI Examination Rules

50% / 50%

Corporate Accounting / Auditing Split

ICMAI Paper 10 Syllabus

30%

Audit under Companies Act 2013 Weightage

ICMAI Paper 10 Syllabus

40% + 50%

Paper and Group Pass Criteria

ICMAI Examination Rules

Group II

CMA Intermediate Group

ICMAI Syllabus 2022

CMA Inter Paper 10 (Corporate Accounting and Auditing) is a 100-mark, 3-hour Group II paper under ICMAI Syllabus 2022. It splits evenly: Section A Corporate Accounting (50%) across five 10% modules (shares and debentures, Schedule III statements, cash flow, banking/electricity/insurance accounts, and Accounting Standards), and Section B Auditing (50%) across basic concepts (10%), audit provisions under the Companies Act 2013 (30%), and audit of different undertakings (10%). ICMAI uses a 30% objective and 70% descriptive pattern and publishes an official MCQ Bank. Passing requires 40% in the paper and 50% in the Group aggregate.

Sample CMA Inter Paper 10 Practice Questions

Try these sample questions to test your CMA Inter Paper 10 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Companies Act, 2013, a company issues equity shares of face value Rs. 10 at a premium of Rs. 4. Where must the Rs. 4 per share premium be credited?
A.Securities Premium Account
B.Capital Reserve
C.General Reserve
D.Profit and Loss Account
Explanation: Premium received on issue of shares is credited to the Securities Premium Account under Section 52 of the Companies Act, 2013. It is shown under 'Reserves and Surplus' and can only be used for the purposes specified in Section 52(2).
2As per Section 52(2) of the Companies Act, 2013, the Securities Premium Account can be applied for which of the following purposes?
A.Writing off the premium payable on redemption of debentures
B.Payment of dividend to equity shareholders
C.Meeting the company's day-to-day working capital needs
D.Distributing as a cash bonus to employees
Explanation: Section 52(2) permits using the Securities Premium Account for issuing fully paid bonus shares, writing off preliminary expenses, writing off issue expenses/commission/discount on securities, providing the premium on redemption of redeemable preference shares or debentures, and buy-back under Section 68.
3A shareholder holding 200 shares of Rs. 10 each (Rs. 8 called up) failed to pay the final call of Rs. 2. The shares were forfeited. What amount is credited to the Forfeited Shares (Share Forfeiture) Account on forfeiture?
A.Rs. 2,000
B.Rs. 400
C.Rs. 1,600
D.Rs. 1,200
Explanation: On forfeiture, the amount already received from the defaulting shareholder is credited to the Share Forfeiture Account. The shareholder had paid Rs. 8 per share (face Rs. 10 less the unpaid Rs. 2 final call) on 200 shares = 200 x 8 = Rs. 1,600.
4200 shares of Rs. 10 each, on which Rs. 8 had been received, were forfeited and later reissued as fully paid at Rs. 9 per share. What amount is transferred to Capital Reserve?
A.Rs. 1,800
B.Rs. 1,600
C.Rs. 1,400
D.Rs. 200
Explanation: Forfeiture credit was Rs. 1,600 (200 x 8). On reissue at Rs. 9, the discount allowed is Rs. 1 per share = Rs. 200, debited to forfeiture. The balance Rs. 1,600 - Rs. 200 = Rs. 1,400 is the capital profit transferred to Capital Reserve.
5Under Section 63 of the Companies Act, 2013, fully paid bonus shares may NOT be issued out of which source?
A.Free reserves
B.Securities Premium Account
C.Capital Redemption Reserve
D.Revaluation Reserve
Explanation: Section 63 allows bonus shares to be issued out of free reserves, the securities premium account, and the capital redemption reserve account. Bonus shares cannot be issued by capitalising reserves created from the revaluation of assets, as these are unrealised gains.
6A company makes a rights issue of one share for every four held at Rs. 15 (face Rs. 10). The cum-rights market price is Rs. 30. What is the theoretical ex-rights (value of right) per existing share?
A.Rs. 3
B.Rs. 27
C.Rs. 15
D.Rs. 6
Explanation: Total value for 5 shares (4 cum-rights at 30 + 1 right at 15) = 120 + 15 = Rs. 135, giving an ex-rights price of 135/5 = Rs. 27. The value of the right per existing share = cum-rights price minus ex-rights price = 30 - 27 = Rs. 3.
7Under Section 54 of the Companies Act, 2013, sweat equity shares are issued to which category of recipients?
A.Directors or employees, for know-how or value additions
B.Existing shareholders in proportion to their holding
C.The general public through a prospectus
D.Debenture holders on conversion of debentures
Explanation: Section 54 defines sweat equity shares as equity shares issued by a company to its directors or employees at a discount or for consideration other than cash, in recognition of providing know-how, making available intellectual property rights, or value additions.
8Under Section 68 of the Companies Act, 2013, the maximum buy-back of shares in a financial year, when approved by a special resolution, cannot exceed what percentage of the total paid-up equity capital and free reserves?
A.10%
B.15%
C.25%
D.20%
Explanation: Section 68(2) permits a buy-back of up to 25% of the aggregate of paid-up capital and free reserves in a financial year, subject to a special resolution. For equity shares specifically, the 25% limit is calculated with reference to the total paid-up equity capital in that year.
9When a company buys back its own shares out of free reserves, an amount equal to the nominal value of the shares bought back must be transferred to which account under Section 69?
A.Securities Premium Account
B.General Reserve
C.Capital Redemption Reserve
D.Capital Reserve
Explanation: Section 69 requires that where shares are bought back out of free reserves or the securities premium account, a sum equal to the nominal value of the shares bought back be transferred to the Capital Redemption Reserve (CRR) Account, preserving capital.
10A company issues 1,000 debentures of Rs. 100 each at par (Rs. 100), redeemable at a premium of Rs. 5 each. By what total amount is the 'Loss on Issue of Debentures' account debited?
A.Rs. 2,500
B.Rs. 10,000
C.Rs. 5,000
D.Rs. 7,500
Explanation: When debentures are issued at par but redeemable at a premium, the loss equals the total premium payable on redemption. Premium on redemption = Rs. 5 x 1,000 debentures = Rs. 5,000, debited to Loss on Issue of Debentures with a corresponding credit to Premium on Redemption of Debentures.

About the CMA Inter Paper 10 Exam

CMA Intermediate Paper 10, Corporate Accounting and Auditing (CAA), is a Group II paper of 100 marks. Section A (Corporate Accounting) covers shares and debentures, Schedule III financial statements, cash flow statements, accounts of banking/electricity/insurance companies, and Accounting Standards. Section B (Auditing) covers basic audit concepts, audit provisions under the Companies Act 2013, Standards on Auditing, internal control, and audit of different undertakings.

Assessment

Question count not published by the exam provider

Time Limit

3 hours (180 minutes)

Passing Score

40% in the paper and 50% aggregate in the Group, per ICMAI rules

Exam Fee

Covered within the CMA Intermediate group examination fee notified by ICMAI; no separate per-paper fee (The Institute of Cost Accountants of India (ICMAI))

CMA Inter Paper 10 Exam Content Outline

50%

Section A: Corporate Accounting

Accounting for shares and debentures, financial statements under Schedule III, cash flow statements (AS-3), accounts of banking, electricity and insurance companies, and applicable Accounting Standards.

10%

Accounting for Shares and Debentures

Issue, forfeiture and reissue of shares, securities premium, rights and bonus issues, sweat equity, ESOP, buy-back, and accounting for debentures under the Companies Act 2013.

10%

Financial Statements as per Schedule III

Preparation of the Statement of Profit and Loss and Balance Sheet under Schedule III Division I, with managerial remuneration, dividend and disclosure rules.

10%

Cash Flow Statement

Cash flow statements under AS-3 using direct and indirect methods and classification into operating, investing and financing activities.

10%

Accounts of Banking, Electricity and Insurance Companies

Specialised final accounts of banking companies (Form A/B, NPA, rebate on bills), electricity companies, and insurance companies (IRDAI forms, unexpired risk reserve).

10%

Accounting Standards

Application of Indian Accounting Standards (AS-2, AS-4, AS-5, AS-9, AS-10, AS-11, AS-12, AS-13, AS-16, AS-17, AS-20, AS-22, AS-26, AS-29).

10%

Basic Concepts of Auditing

Objective and scope of audit (SA 200), assertions, materiality, audit risk, evidence, vouching, audit programme, documentation, ethics, and professional skepticism.

30%

Provisions Relating to Audit under Companies Act, 2013

Appointment, rotation, removal and disqualification of auditors (Sections 139-141), rights and duties (Section 143), CARO 2020, cost/internal audit, and Standards on Auditing.

10%

Auditing of Different Types of Undertakings

Audit of partnership firms, trusts, educational institutions, hospitals, co-operative societies, NGOs, and government/public sector undertakings, including propriety audit.

How to Pass the CMA Inter Paper 10 Exam

What You Need to Know

  • Passing score: 40% in the paper and 50% aggregate in the Group, per ICMAI rules
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours (180 minutes)
  • Exam fee: Covered within the CMA Intermediate group examination fee notified by ICMAI; no separate per-paper fee

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CMA Inter Paper 10 Study Tips from Top Performers

1Allocate equal time to Corporate Accounting and Auditing, since each carries 50% of the marks.
2Within Auditing, prioritise the Companies Act 2013 audit provisions, which alone carry 30% weightage.
3Practise journal entries and working notes for shares, debentures, and buy-back until they are automatic.
4Memorise key Companies Act sections (139, 140, 141, 143, 148) and the relevant Standards on Auditing by number.
5Solve banking, electricity, and insurance company final accounts using the prescribed statutory formats.
6Use the ICMAI MCQ Bank and past model question papers to rehearse the objective and descriptive mix under timed conditions.

Frequently Asked Questions

What is CMA Inter Paper 10 about?

CMA Intermediate Paper 10, Corporate Accounting and Auditing (CAA), is a Group II paper under ICMAI Syllabus 2022. It is split equally between Section A Corporate Accounting and Section B Auditing, each carrying 50% weightage in a 100-mark paper.

How is Paper 10 weighted across topics?

Section A Corporate Accounting (50%) has five modules of 10% each: shares and debentures, Schedule III financial statements, cash flow statement, banking/electricity/insurance accounts, and Accounting Standards. Section B Auditing (50%) has basic concepts (10%), audit under the Companies Act 2013 (30%), and audit of different undertakings (10%).

What is the exam pattern and duration for CMA Inter Paper 10?

Paper 10 is a 100-mark written examination of 3 hours. ICMAI follows a pattern of 30% objective (including multiple-choice) questions and 70% descriptive questions, and there is no negative marking.

What are the passing marks for CMA Inter Paper 10?

A candidate must secure a minimum of 40% marks in Paper 10 and an aggregate of 50% in the Group to pass. Scoring 60% or more in a paper may grant a paper exemption as per ICMAI rules.

Which standards are tested in the Auditing section of Paper 10?

The Auditing section covers Standards on Auditing such as SA 200, SA 230, SA 240, SA 250, SA 315, SA 320, SA 530, SA 570, SA 580, SA 610, and the reporting standards SA 700 to SA 706, alongside audit provisions of the Companies Act 2013.

Does ICMAI publish an MCQ bank for Paper 10?

Yes. ICMAI publishes official study material and an MCQ Bank for Intermediate papers including Paper 10, which candidates use to practise objective-type questions covering both Corporate Accounting and Auditing.

Is Paper 10 a numerical or theory paper?

Paper 10 is a blend. Section A Corporate Accounting is largely numerical, involving share/debenture accounting, Schedule III statements, cash flow, and AS application, while Section B Auditing is mainly conceptual, based on the Companies Act 2013 and Standards on Auditing.