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Allied Capital Corporation II and Subsidiaries
Exhibit 11 Computation of Earnings Per Common Share
Form 10-Q
March 31, 1996




                                                                                For the Three Months Ended
                                                                                        March 31,
                                                                              -------------------------------
                                                                                 1996                1995
                                                                              -------------------------------
                                                                                             
Primary Earnings Per Share:                                                 

       Net Increase in Net Assets Resulting                                 
            from Operations                                                   $5,949,000           $2,943,000
                                                                              ===============================

       Weighted average number of                                           
            shares outstanding                                                 7,080,110            6,938,191

       Weighted average number of                                           
            shares issuable on exercise                                     
            of outstanding stock options                                          63,002                7,028
                                                                              -------------------------------

       Weighted average number of shares and                                
            share equivalents outstanding                                      7,143,112            6,945,219
                                                                              ===============================

       Earnings per Share                                                          $0.83                $0.42
                                                                              ===============================

Fully Diluted Earnings Per Share:                                           

       Net Increase in Net Assets Resulting                                 
            from Operations                                                   $5,949,000           $2,943,000
                                                                              ===============================

       Weighted average number of                                           
            shares and share equivalents                                    
            outstanding as computed for                                     
            primary earnings per share                                         7,143,112            6,945,219

       Weighted average of additional                                       
            shares issuable on exercise                                     
            of outstanding stock options                                          14,080                    -
                                                                              -------------------------------

       Weighted average of shares and                                       
            share equivalents outstanding, as adjusted                         7,157,192            6,945,219
                                                                              ===============================

       Earnings per Share                                                          $0.83                $0.42
                                                                              ===============================