<PAGE>   1
Allied Capital Corporation II and Subsidiaries
Exhibit 11 Computation of Earnings Per Common Share
For the Years Ended December 31, 1995, 1994 and 1993

<TABLE>
<CAPTION>
                                                                     For the Year Ended December 31
                                                               -----------------------------------------
                                                                   1995           1994          1993
                                                               -----------------------------------------
<S>                                                            <C>          <C>             <C>
Primary Earnings Per Share:                                
                                                           
   Net Increase in Net Assets Resulting         
     from Operations                                           $14,733,000  $10,515,000     $10,474,000
                                                               =========================================
                                                           
   Weighted average number of                              
     shares outstanding                                          6,946,815    6,938,191       6,938,191
                                                           
   Weighted average number of                              
     shares issuable on exercise                           
     of outstanding stock options                                   32,555        1,756          12,973
                                                               -----------------------------------------
   Weighted average number of                              
     shares and share equivalents outstanding                    6,979,370    6,939,947       6,951,164
                                                               =========================================
   Earnings per Share                                                $2.11        $1.52           $1.51
                                                               =========================================
                                                           
Fully Diluted Earnings Per Share:                          
                                                           
   Net Increase in Net Assets Resulting         
     from Operations                                           $14,733,000  $10,515,000     $10,474,000
                                                               =========================================
   Weighted average number of                              
     shares and share equivalents                          
     outstanding as computed for                           
     primary earnings per share                                  6,979,370    6,939,947       6,951,164
                                                           
   Weighted average of additional                          
     shares issuable on exercise                           
     of outstanding stock options                                   41,184            -               -
                                                               -----------------------------------------
   Weighted average of shares and share equivalents        
     outstanding, as adjusted                                    7,020,554    6,939,947       6,951,164
                                                               =========================================
   Earnings per Share                                                $2.10        $1.52           $1.51
                                                               =========================================
</TABLE>