JAIIB AFM Recollected Questions 2026: Memory-Based MCQs From Past Exams (Topic-Wise + Solved)

JAIIB AFM recollected questions are the closest thing you have to a real exam preview. They are memory-based MCQs that JAIIB pass-outs reconstruct right after writing the Accounting. Financial Management for Bankers (AFM) paper.

Study them and you stop guessing what IIBF asks. You start practising the exact pattern. Difficulty, and topic mix that actually shows up.

This 2026 guide compiles those recalled questions topic by topic. It adds solved numericals. A high-yield weightage table, common traps, and a focused FAQ.

Whether you call them AFM or by the old name Accounting. Finance for Bankers (AFB). The goal is the same: walk into the hall already familiar with the questions.

What Are JAIIB AFM Recollected Questions?

Recollected questions (also called memory-based or remembered questions) are MCQs that candidates write down from memory after their exam. No exam body releases the real paper. So these reconstructions become the most reliable mirror of what IIBF tests in the AFM paper.

They are not a leaked question bank. They are a pattern map. The exact numbers may change.

But the question types repeat session after session. That repetition is the gold. Once you recognise the shape of a question.

You solve it faster under pressure.

Why AFM Specifically Needs This Approach

AFM is one of the most numerical-heavy papers in JAIIB. Pure theory revision is not enough. You can know the NPV formula.

Still lose marks. You have never practised the IIBF style of framing it. Recollected questions close that gap between knowing and applying.

Why Recollected Questions Matter for Your JAIIB Score

JAIIB is conducted twice a year by the Indian Institute of Banking. Finance (IIBF). Seats in your career timeline are limited.

And re-attempts cost time and fees. Smart preparation means studying what is actually asked. Not everything that could theoretically be asked.

Here is what recollected questions give you that a plain syllabus list cannot:

• Real difficulty calibration. You learn whether a topic is asked at a basic or applied level.
• Time awareness. You discover which numericals are quick wins and which are time sinks.
• Phrasing familiarity — IIBF wording is specific; seeing it early removes exam-day confusion.
• Confidence — recognising patterns lowers anxiety and raises accuracy.

AFM High-Yield Topic Weightage (From Recalled Patterns)

The table below maps the topics that recur most across sessions. Treat it as a priority order for revision. And always confirm the exact module structure on the latest official IIBF notification.

Topic-Wise JAIIB AFM Recollected Questions

Below are the memory-recalled questions grouped by topic, mirroring the AFM syllabus. Use them as a self-test: cover the answers. Attempt each one, then review.

1. Accounting Concepts and Principles

• What are the bases of accounting? (Cash basis vs Accrual basis)
• What is an asset — a source of funds. A use of funds, a cash inflow, or none of these?
• Which accounts are debited or credited in the Profit and Loss Account. Real. Only nominal, mixed, or only personal?
• Short notes on Accounting Standards (AS) — applicability and importance.
• What are the types of errors in accounting? Name the third category of clerical errors after error of commission. Error of omission.
• What is computerised accounting and what are its advantages?
• Questions on the cost concept and the going concern concept.
• Examples of accounting concepts — going concern, conservatism, business entity, dual aspect.
• What is the definition of "data" in a computing context? What is voucher posting in banking?

2. Depreciation (SLM, WDV, Sum of Digits)

• Practical questions on the WDV method with numerical examples.
• Distinguish the Written Down Value (WDV) method from the Sum of Digits method.
• What is the formula for the Straight Line Method (SLM)?

3. Capital Budgeting (NPV, IRR, Payback, ARR)

• What is the Payback Period and how does it differ from NPV?
• Practical problems on NPV and IRR.
• What is the Average Rate of Return (ARR)?

4. Time Value of Money and Financial Mathematics

• If a city's population is 24,00,000 and grows 7% per annum. What is it after 6 years? What was it 4 years ago? Find the difference.
• How are Future Values calculated?
• What is the difference between present annuity and future annuity? Define an annuity and the sequence of payments.
• If the 1-year discount factor is 0.8333. What is the discount (interest) rate per annum? Solution: Rate = (1 / 0.8333) − 1 = 20% per annum
• If a principal of Rs.10,000 becomes Rs.16,000 after 3 years (compounded annually). Find the rate of interest.

5. Ratio Analysis

• If Current Ratio = 2:1. Quick Ratio = 1.5:1, and Current Liabilities = Rs.1,60,000, find the value of inventories. Solution: Current Assets = 2 × 1,60,000 = 3,20,000. Quick Assets = 1.5 × 1,60,000 = 2,40,000. Inventories = 3,20,000 − 2,40,000 = Rs.80,000
• What is the formula for the Debt Service Coverage Ratio (DSCR)? DSCR = (Net Income + Depreciation + Interest) / (Principal Repayment + Interest)

6. Bond Valuation and Investment

• Define Coupon Rate and Current Yield.
• Market price = Rs.4,500; Face value = Rs.5,000; Coupon rate = 12%. Find the current yield. Solution: Current Yield = (12% × 5,000) / 4,500 = 600 / 4,500 = 13.33%
• Face value = Rs.100, Coupon = 12%, Maturity = 5 years, Required return = 15%. Find the bond value.
• What are Zero Coupon Bonds. Forward Rate, Floating Rate, and Global Depository Receipts (GDR)?

7. Foreign Currency and Exchange

• If 1$ = Rs.71.00 and 1$ = 22 Singapore dollars. What is the INR value of 1 Singapore dollar? Solution: 1 SGD = 71 / 22 = Rs.3.23 (approx.)
• If 1$ = Rs.69.2135 / Rs.69.3525, how many dollars will Rs.100 buy?
• Practical questions on foreign exchange transactions and cross rates.

8. BRS, Cash Book, Stock and Balance Sheet

• Differences between the cash book and bank passbook. Preparation of the cash book.
• Why do standing instructions create differences between passbook and cash book balances?
• Calculation of opening stock. Closing stock, net profit, and cost of goods sold.
• Balance sheet preparation and interpretation; problems on YTM and bond value.
• Rectification of errors — journal entries and suspense account treatment.
• What kind of account is Rent Receivable? (Personal Account — Accrued Income)
• How is a Trademark classified? (Intangible Real Account)

9. Shares, Debentures, Partnership and Company Accounts

• Problems on shares and debentures; questions on capital shares.
• How many types of accounts are there. And how are they debited or credited?
• What is a Non-Voting Share?
• Questions on partnership registration and members, plus compound interest problems.

10. Banking Operations (AFM-Specific Topics)

• In which Act is "banking" defined? (Banking Regulation Act, 1949)
• What are the risk categories under KYC. And the monthly withdrawal limit of a small account?
• What are the cheque collection days? What is a vault or custody key?
• What is a DEAF account and a Certificate of Deposit?
• What is a Core Banking Solution (CBS)? What is the monthly transaction limit reported to FIU-IND?
• What are Officially Valid Documents (OVD). And how can a customer open an account without one?
• What documents are needed for a sole proprietor's current account?
• Which activities are not para-banking activities? Why does every bank hold accounts in other banks?
• What is the minimum age for a minor to operate a bank account? Who are the parties to a promissory note?
• What is BCSBI? Which accounts cannot be opened for FCNR(B) deposits?
• What is outsourcing of bank services? What is the difference between front office and back office?
• What are Bills of Exchange? What is a prime entry and a subsidiary book?

For the exact limits. Thresholds. And document lists. Always confirm on the latest official IIBF notification. As these figures are revised periodically.

Accounting in Core Banking Solution (CBS)

CBS-based accounting is a recurring AFM theme. Core Banking Solution links every branch through a centralised system that processes transactions in real time. Expect questions on:

• How vouchers are posted in CBS — system-generated vs manual vouchers.
• Centralised vs branch-level accounting under CBS.
• The role of CBS in reducing errors and maintaining an audit trail.
• e-KYC integration with CBS during account opening.

How to Study AFM Recollected Questions (Step-by-Step)

Reading the questions once does little. Use this practical, repeatable method to convert them into marks.

1. First pass — sort by confidence. Attempt every question and tag it green (easy). Yellow (shaky), or red (no idea).
2. Build a formula sheet. Write SLM. WDV, DSCR, current yield, NPV, and annuity formulas on one page. Revise it daily.
3. Drill the numericals. Re-solve each solved example without looking. AFM rewards speed, so time yourself.
4. Convert theory to flashcards. Turn accounting concepts and banking-operations terms into quick recall cards.
5. Simulate the exam. Attempt full-length mock tests under timed conditions, then review every wrong answer.
6. Loop the weak topics. Revisit your red-tagged questions weekly until they turn green.

Quick Revision Resources

Pair this question bank with concept clarity. Browse our free guides for chapter-wise notes, and use short drills to keep definitions and formulas fresh between study sessions.

Common Mistakes to Avoid in AFM Prep

Most AFM marks are lost to avoidable errors, not hard concepts. Watch for these:

• Memorising answers, not methods. The numbers change in the real exam. Master the steps, not the result.
• Ignoring units and rounding. Forex and yield questions punish careless decimals. Read what the question asks for.
• Skipping theory because AFM "is numerical". Accounting concepts and banking operations are easy. Repeated marks — do not leave them.
• No time management. Some numericals are traps that eat minutes. Flag and return to them.
• Relying on outdated figures. KYC limits, thresholds, and rules change. Always confirm on the latest official IIBF notification.
• No timed practice. Untimed prep hides your real speed. Use full-length mocks before the exam.

Frequently Asked Questions (FAQ)

Q1. What is the current yield of a bond and how is it calculated?

Current Yield = Annual Coupon Payment / Current Market Price of the bond. Example: face value Rs.5,000, coupon rate 12%, market price Rs.4,500. Current Yield = (12% × 5,000) / 4,500 = 600 / 4,500 = 13.33%. It measures the return based on the bond's current price. Not its face value.

Q2. Which types of errors are not revealed by a Trial Balance?

A Trial Balance does not catch errors of omission (a transaction left out entirely). Errors of commission where the amount is correct. Posted to the wrong account.

Compensating errors (two errors that cancel out). And errors of principle (wrong classification). It only detects errors that make the debit and credit totals unequal.

Q3. What is the formula for the Written Down Value (WDV) method of depreciation?

Under WDV: Closing Book Value = Opening Book Value × (1 − Rate of Depreciation). Depreciation is charged on the reducing balance. So it is higher in the early years and tapers off later. The asset is never fully written down to zero under this method.

Q4. What is a Zero Coupon Bond?

A Zero Coupon Bond pays no periodic interest. It is issued at a discount to face value. Redeemed at par on maturity. The investor's return is the difference between the discounted purchase price. The face value received at maturity.

Q5. How many times a year is the JAIIB AFM exam held?

JAIIB is conducted twice a year by IIBF. And AFM is one of its papers. Exact dates.

The number of attempts. Passing marks. And syllabus weightage are set by IIBF.

Always confirm these on the latest official IIBF notification before planning your attempt.

Conclusion: Turn Recalled Questions Into Real Marks

The JAIIB AFM recollected questions in this guide span every high-yield area of the Accounting. Financial Management for Bankers paper. From accounting concepts and BRS to depreciation. Capital budgeting, ratio analysis, bond valuation, YTM, forex, and CBS accounting. They show you exactly how IIBF frames its questions.

Now make them count. Build your formula sheet. Drill the numericals until they are automatic.

And test yourself under exam conditions. Consistent. Pattern-aware practice is what separates a clear pass from a near miss.

Start today. Stay regular, and walk into the AFM exam already knowing the questions.

Related Guides

For more on JAIIB AFM recollected questions. See the official IIBF circulars. Our chapter-wise free notes on iibf.store.

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