JAIIB AFM Previous Year Question Papers 2026: Solved AFB PYQs, Pattern & Smart
If you want one honest test of how ready you really are. Solve JAIIB AFM previous year question papers before you do anything else. Textbooks show you the syllabus.
Previous year questions (PYQs) show you how IIBF actually frames that syllabus into a timed. Multiple-choice exam. That gap.
Between what you have read and what you can answer under pressure. Is where most Accounting. Financial Management for Bankers candidates win or lose marks.
This 2026 guide brings everything into one place. You get the AFM exam pattern, a curated set of 20 solved AFB previous year questions with answers, the high-frequency topics that repeat, a practical study plan, the mistakes that quietly cost ranks, and a clear FAQ. The questions below are drawn from the old AFB (Accounting and Finance for Bankers) syllabus, and the core concepts in them still carry directly into today's AFM paper. Treat this page as your single source of truth, then pair it with regular mock tests on iibf.store.
Key Takeaways
- AFM (Accounting. Financial Management for Bankers) is the successor to the old AFB paper in the JAIIB exam.
- Old AFB previous year questions stay relevant because BRS. Depreciation, accounts and ratios are still tested under AFM.
- JAIIB is an objective. MCQ-based exam with no negative marking, so attempt every single question.
- Roughly 30-40% of AFM is numerical. So master depreciation, ratios, bond valuation and time value of money early.
- Always confirm marks. Dates and pattern on the latest official IIBF notification. As details can change.
Why JAIIB AFM Previous Year Question Papers Matter
Accounting. Financial Management for Bankers is one of the most application-heavy papers in the JAIIB examination conducted by the Indian Institute of Banking. Finance (IIBF). It mixes business mathematics, bookkeeping, financial statements and banking operations. You cannot bluff your way through it.
Solving JAIIB AFM previous year question papers forces you to recall. Calculate and decide at exam speed. Think of PYQs as the answer key to the examiner's mindset. Here is what disciplined practice delivers.
- Pattern recognition: You learn which topics. Such as Bank Reconciliation, Depreciation and Ratio Analysis, return again and again.
- Difficulty calibration: You see the real depth IIBF expects. Not an idealised version from a textbook.
- Question-type familiarity: Theory. Conceptual and numerical items stop surprising you on exam day.
- Speed. Accuracy: Practising 20+ MCQs per topic trains you for a strictly time-bound paper.
- Gap detection: Weak chapters surface fast. So your study time goes where it actually pays off.
In short. Previous year papers are the cheapest. Lowest-risk rehearsal you can get before the real performance.
From AFB to AFM: What Changed and What Did Not
The old paper was called AFB (Accounting and Finance for Bankers). Under the revised JAIIB structure. It evolved into AFM (Accounting and Financial Management for Bankers). The name changed, but the foundation did not.
Many core concepts carry straight across. That is exactly why old AFB recollected questions remain such valuable practice for the AFM paper today.
| Aspect | Old AFB Paper | Current AFM Paper |
|---|---|---|
| Full Name | Accounting and Finance for Bankers | Accounting and Financial Management for Bankers |
| Core Topics | Bookkeeping, BRS, depreciation, ratios, business maths | Same foundations, with added financial-management depth |
| Format | Objective MCQ | Objective MCQ |
| PYQ Relevance | Original source bank | High, for shared concepts and patterns |
So when you practise these old AFB MCQs. You are not studying outdated material. You are rehearsing the exact reasoning. Calculation skills the modern AFM paper rewards.
About the JAIIB AFM Paper
The JAIIB (Junior Associate of the Indian Institute of Bankers) certification is one of the most respected entry-level banking qualifications in India. It is conducted by IIBF, typically twice a year. Always check the official IIBF website for the current exam calendar.
The AFM paper tests both conceptual understanding and numerical problem-solving. Questions span modules such as Business Mathematics. Principles of Bookkeeping and Accountancy.
Financial Statements, Banking Operations and Ethics in Banking. Confirm the exact module structure. Weightage on the latest official IIBF notification before you finalise your plan.
JAIIB AFM Exam Pattern 2026
Before you attempt a single previous year paper, internalise the structure. Your practice should mirror it exactly so there are no surprises on exam day. Cross-check every figure on the latest official IIBF notification. As the pattern can change between cycles.
| Parameter | Details |
|---|---|
| Type of Questions | Objective (Multiple Choice) |
| Total Questions | Confirm on the latest official IIBF notification |
| Maximum Marks | 100 |
| Duration | 2 hours (confirm on the latest official IIBF notification) |
| Passing Marks | 50 out of 100 (confirm on the latest official IIBF notification) |
| Negative Marking | None |
| Mode | Online (Computer-based) |
| Medium | Hindi or English |
Quick win: Because there is no negative marking. Never leave a question blank. Make an educated guess on every item you cannot fully solve.
An unattempted question earns nothing. And a wrong answer costs nothing. So a blank is simply a wasted mark.
20 Solved JAIIB AFM Previous Year Questions (from Old AFB Papers)
The following multiple-choice questions are compiled from earlier AFB recollected papers. Reflect the style IIBF favours. Many of these concepts carry directly into the current AFM syllabus. Attempt each one honestly before checking the answer in the final column. And time yourself as if it were a mini mock.
| No. | Question | Answer |
|---|---|---|
| 1 | Federal Reserve Board is the regulator of the banking system in:1. India2. Europe3. United States4. Britain | c |
| 2 | A bank can hold as mortgagee. Pledgee. Or absolute owner of shares of a company. Maximum to the extent of:1. 30% of the paid-up capital of the bank. 30% of the paid-up capital of the company. Whichever is lower2. 30% of the paid-up capital of the bank. 30% of the paid-up capital of the company. Whichever is higher3. 30% of paid-up capital + reserves of the bank. 30% of the paid-up capital of the company. Whichever is higher4. 30% of paid-up capital + reserves of the bank. 30% of paid-up capital of the company. Whichever is lower | a |
| 3 | When a manufacturer keeps the product price at a higher level. Buyers perceive the product to be of better value and quality. This is called _______ pricing.1. Geographical pricing2. Promotional pricing3. Market skimming pricing4. Psychological pricing | d |
| 4 | Tele-banking facility is provided by banks through bank computers based on. Of the following:1. Voice processing2. Brick-and-mortar processing3. Internet processing4. Virtual banking | a |
| 5 | Under the Prevention of Money Laundering Act 2002. Banks are required to maintain a record of cash transactions of the value of:1. Rs.50,000 and above2. Rs.1 lac and above3. Rs.10 lac and above4. Above Rs.10 lac | d |
| 6 | A microenterprise with sales of Rs.36 lac. Rs.50 lac for the last two years has projected sales of Rs.60 lac. Wants to enhance its bank limit from Rs.8 lac to Rs.11 lac. What amount of limit can be sanctioned. What is the margin requirement:1. Limit Rs.10 lac, margin Rs.2.50 lac2. Limit Rs.12 lac, margin Rs.3.00 lac3. Limit Rs.12 lac, margin Rs.5.00 lac4. Limit Rs.15 lac, margin Rs.2.50 lac | b |
| 7 | Bank's obligation to pay the cheque drawn by the customer under Section 31 of the NI Act exists in. Of the following circumstances:1. When the amount in words and figures differs2. When there is a notice of death of the customer3. When an attachment order has been received4. When the signatures of the drawer are genuine but differ | a |
| 8 | Two companies are merged. One of these is a supplier of goods to the other. This merger is known as:1. Horizontal merger2. Vertical merger3. Conglomerate merger4. Concentric merger | b |
| 9 | Which of the following may NOT be part of the Bank Reconciliation process?1. Interest on overdraft2. Dishonor of cheque3. Cash has been drawn from a bank4. Cheque deposited but not collected | c |
| 10 | The Indian insurance industry is run on globally acceptable standards. IRDA carries the following functions — which one is NOT correct:1. Registration of insurance2. Solvency margins of insurance3. Conduct of reinsurance business4. Functions as Insurance Ombudsman | d |
| 11 | Which of the following is true?1. Bank Reconciliation Statement (BRS) is an account.2. BRS is prepared by the bank.3. BRS shows causes of disagreement between the cash book and passbook.4. BRS shows only excess cash book over passbook. | c |
| 12 | Direct deposit by a customer in the bank:1. Shows a higher passbook balance than cash book.2. Shows a lesser passbook balance than cash book.3. Shows no difference.4. None of the above. | a |
| 13 | A document executed outside India requires payment of stamp duty in India. The duty can be paid on this document within:1. Before it is used in India2. Immediately when the document enters India3. Within 4 months from the date of its execution abroad4. Within 3 months of its entry into India | d |
| 14 | A customer placed funds with the bank for purchase of securities. The bank started the purchase but failed before completing the entire purchase. The relationship of the customer with the bank is that of:1. Agent-Principal2. Bailor-Bailee3. Beneficiary-Trustee4. Creditor-Debtor | c |
| 15 | The sales return of Rs.1,000 from Vijay was wrongly entered in the purchase book. The rectification is:1. Debit sales to the extent of Rs.2,000.2. Credit purchases to the extent of Rs.2,000.3. Credit Vijay Rs.2,000. Debit sales and purchases to the extent of Rs.1,000 each.4. Debit sales return by Rs.1,000 and credit purchases by Rs.1,000. | d |
| 16 | In wholesale banking. Banks normally do NOT deal with which of the following:1. Corporates including multinationals2. Trading houses3. Prime public sector companies4. None of the above | d |
| 17 | Suspense account is NOT used in which of the following cases?1. Before trial balance.2. After trial balance.3. Before final accounts.4. None of the above. | a |
| 18 | Which of the following is true?1. Nominal accounts always have credit balances.2. Real accounts always have debit balances.3. The debit balance in the ledger account is a credit balance in the trial balance.4. P&L account appears in the trial balance. | b |
| 19 | Global depository receipts are listed on _____ stock exchanges:1. American2. European3. Asian4. Indian | b |
| 20 | Under the on-site model. Banks are evaluated by RBI based on CAMELS parameters. Which among the following does NOT match:1. C – Capital and reserves of the bank2. A – Asset quality3. E – Earning4. L – Liquidity | a |
Pro tip: Do not just check whether you got the answer right. For every question, ask why the other options are wrong. That single habit is what converts previous year question practice into real marks.
High-Frequency Topics in JAIIB AFM
Based on recollected questions from past sessions. Certain areas surface again and again. Prioritise the high-yield topics below in both your study and your practice. They are the reliable. Scoring areas once your concepts and formulas are solid.
| Topic | What Gets Tested |
|---|---|
| Bank Reconciliation (BRS) | Causes of difference between cash book and passbook, preparation of BRS |
| Depreciation | Straight Line Method (SLM). Written Down Value (WDV), Sum of Digits — formulae and numericals |
| Ratio Analysis | Current Ratio, Quick Ratio, Debt-Equity Ratio and their interpretation for credit appraisal |
| Time Value of Money | Present Value, Future Value, PVIF, PVIFA tables, annuity calculations |
| Bond Valuation | Current Yield, Yield to Maturity (YTM) — formula-based numericals |
| Rectification of Errors | Types of errors, rectification journal entries, Suspense Account |
| Types of Accounts | Real, Personal and Nominal accounts; the Golden Rules of Accounting |
| Capital Budgeting | Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR) |
Typically, 30 to 40 percent of the AFM paper is numerical or application-based. Topics like depreciation. Ratio analysis.
Bond valuation. NPV and compound interest are reliable sources of numericals. So build a strong formula sheet early.
How to Use JAIIB AFM Previous Year Papers the Right Way
Reading PYQs passively wastes them. The value lies in active, timed practice and honest review. Follow this method to turn every previous year paper into real marks.
- Finish the chapter first. Complete the chapter-wise study of the AFM syllabus before you attempt the matching PYQs.
- Recreate exam conditions. Set a timer. Sit in a quiet space. And finish in one sitting with no breaks.
- Attempt before you peek. Solve each question fully before checking the answer key, even when unsure.
- Analyse every wrong answer. Decide whether it was a concept gap. A calculation slip, or a misread question.
- Maintain an error log. Keep a running notebook of repeated mistakes. This single list becomes your sharpest revision tool.
- Rehearse the numericals. Practise depreciation, BRS, ratio and bond-valuation sums until the steps are automatic.
- Scale up to full mocks. Once chapter-wise practice is solid, attempt full-length papers to build exam temperament.
A Simple 4-Week AFM Practice Plan
Here is a lightweight schedule you can adapt to your own timeline. The principle matters more than the exact days. Aim to solve at least 3 to 5 full recollected sets plus 500+ chapter-wise MCQs before the exam.
- Week 1: Solve topic-wise MCQs, chapter by chapter. Focus on accuracy and ignore the clock.
- Week 2: Attempt two full-length previous papers under timed conditions. Start your error log in earnest.
- Week 3: Do three to four timed papers. Drill BRS, depreciation and ratio numericals separately.
- Week 4: Take two final papers early in the week. Then switch to pure revision of your error log and formula sheet.
For deeper notes on each module, browse our free guides and reinforce them with full-length mock tests that carry bilingual explanations and a public leaderboard.
Common Mistakes Candidates Make with AFM PYQs
Most AFM failures are avoidable. Watch for these recurring traps and design your practice to beat them.
- Reading PYQs like notes. Looking at the answer before attempting kills the diagnostic value of the question.
- Fearing the numericals. Avoiding depreciation, bond and ratio sums only widens the gap. Face them early and often.
- Memorising answers, not concepts. Options get reshuffled. Understand the underlying idea, not the letter a, b, c or d.
- Skipping the Golden Rules. Without a firm grip on Real. Personal and Nominal accounts, accounting questions stay confusing.
- Poor time discipline. Spending five minutes on one tough numerical can cost you ten easy questions elsewhere.
- Leaving questions blank. With no negative marking, a blank is a wasted opportunity. Always attempt every question.
Frequently Asked Questions (FAQ)
Q1. Are the old AFB syllabus questions still relevant for the new AFM syllabus?
Yes. Many foundational topics. Such as depreciation methods.
Bank reconciliation. Types of accounts. Ratio analysis and time value of money.
Remain common between the old AFB and current AFM syllabi. Practising old questions gives you valuable exposure to IIBF question patterns. Difficulty levels.
Q2. How many questions come from numerical topics in the JAIIB AFM exam?
Typically. 30 to 40 percent of the AFM paper consists of numerical or application-based questions. Bond valuation.
Depreciation. NPV. Compound interest and ratio analysis are common sources of numericals.
So practise them until your calculations are fast and reliable.
Q3. What is the best strategy to use previous year papers for JAIIB AFM preparation?
First, complete the chapter-wise study of the AFM syllabus. Then attempt chapter-wise MCQs from previous papers. Finally, take full-length mock tests to build exam temperament and time-management skills under realistic pressure.
Q4. How many previous year papers should I solve before the JAIIB AFM exam?
Solving at least 3 to 5 full sets of recollected question papers. Along with 500+ chapter-wise MCQs, is recommended for thorough preparation. Focus more on understanding concepts than on memorising specific answers.
Q5. Is there negative marking in the JAIIB AFM exam?
No, there is no negative marking in JAIIB examinations. Candidates should attempt all questions even when unsure. Because unattempted questions earn no marks. Wrong answers do not deduct any. Always confirm the latest rules on the official IIBF notification.
Conclusion: Solve Smart, Score High
Practising JAIIB AFM previous year question papers is a proven way to crack the Accounting. Financial Management for Bankers paper. The 20 solved questions above cover core topics like BRS.
Types of accounts. Depreciation. Mergers and banking regulations.
All of which continue to be tested under the current syllabus.
Start now. Pick a set of questions. Attempt them under real conditions.
Log every mistake, and revisit your weak chapters. Combine that discipline with a thorough reading of the IIBF prescribed material. And clearing AFM in a single attempt becomes a realistic, repeatable outcome.
Verify all marks. Dates and rules on the latest official IIBF notification. Then put in the reps.
Your result is built one solved paper at a time.
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