JAIIB AFM Questions PDF 2026: 20+ Solved MCQs, Free Practice Set & Study Plan
If you are hunting for a reliable JAIIB AFM questions PDF to revise Accounting &. Financial Management for Bankers before the next IIBF exam. You are in the right place.
This guide gives you 20+ solved AFM MCQs with answer keys. A high-yield topic map. The exact mistakes that cost candidates marks.
And a focused study plan you can finish in 30 days.
AFM is the paper most JAIIB aspirants fear. It mixes accounting theory, financial ratios and numerical problems in one sitting. The good news?
It is also the most predictable paper once you know. Topics repeat. Let us turn that fear into your highest-scoring subject.
Key Takeaways (read this first)
- AFM = Accounting & Financial Management for Bankers. A core JAIIB paper that blends theory + numericals.
- Practising a curated JAIIB AFM questions PDF beats passive reading for memory retention.
- High-yield areas: ratio analysis. BRS, error rectification, capital adequacy, interest & depreciation maths.
- Solve at least mock tests weekly and review every wrong answer the same day.
- Always cross-check marks. Passing criteria and the syllabus on the latest official IIBF notification.
What Is the JAIIB AFM Paper?
AFM (Accounting &. Financial Management for Bankers) is one of the papers in the JAIIB examination conducted by the Indian Institute of Banking &. Finance (IIBF). JAIIB stands for Junior Associate of the Indian Institute of Bankers. A flagship qualification that boosts a banker's knowledge, confidence and increment eligibility.
The AFM paper tests whether you can read a balance sheet. Pass correct journal entries, compute financial ratios and apply basic financial mathematics. In short. It checks the practical accounting skills a working banker uses every day.
For the exact number of papers. Marks per question. Negative marking rules and pass marks. Always confirm on the latest official IIBF notification. Because IIBF revises the pattern from time to time.
Why a Curated AFM Questions PDF Beats Passive Reading
Reading a textbook feels productive, but it rarely sticks. Active recall does. When you attempt a JAIIB AFM questions PDF. Your brain retrieves the concept instead of merely recognising it. That single shift can lift your score dramatically.
- Exposes blind spots fast — you instantly see which formulas you have forgotten.
- Builds exam stamina — AFM is long; practice trains your speed and focus.
- Reveals question patterns — many AFM concepts repeat across attempts with new numbers.
- Reduces silly errors — repeated practice fixes contra-entry and sign mistakes.
Pair this question set with our free free guides and a daily revision habit, and you will feel the difference within two weeks.
High-Weightage AFM Topics at a Glance
Not every chapter carries equal marks. Focus your energy on the topics that historically dominate the paper. Use the table below as your priority map. Then verify the current syllabus weightage on the latest official IIBF notification.
| AFM Topic Area | What It Covers | Priority |
|---|---|---|
| Financial Mathematics | Simple & compound interest, present value, annuities, depreciation | High |
| Ratio Analysis | Debtor turnover, ROI, liquidity & solvency ratios | High |
| Final Accounts & Adjustments | Closing stock, bad debts, provisions, P&L treatment | High |
| Rectification of Errors | Suspense account, error of principle, omissions | Medium |
| Bank Reconciliation (BRS) | Overdraft balances, unpresented cheques, contra entries | Medium |
| Banking Finance Concepts | Capital adequacy (CAR/CRAR), working capital, cash management | Medium |
JAIIB AFM Solved Questions PDF: 20 Must-Practise MCQs
Below is your core JAIIB AFM questions PDF set. Attempt each question on paper first. Write your answer, and only then check the key. Treat the explanation notes as mini-revision. The correct option is shown in the right column.
| No. | Question & Options | Answer |
|---|---|---|
| 1 | By. Method is the Capital Adequacy Ratio (CAR/CRAR) required to be calculated as per the Basel framework applicable in India?a. Eligible total capital funds / risk-weighted assetsb. Capital funds / risk-weighted assetsc. Eligible total capital funds / (Credit Risk RWA + Market Risk RWA + Operational Risk RWA)d. Paid-up capital / (Credit Risk RWA + Market Risk RWA + Operational Risk RWA) | c |
| 2 | Which of the following investments is NOT likely to be a proper investment for temporary idle cash in hand?a. Initial public offering (IPO) of an established profitable conglomerateb. Commercial paperc. Treasury bonds due within 1 yeard. Treasury bills | a |
| 3 | Which statement most appropriately describes a cash discount?a. A reduction in price allowed when items are bought in bulkb. A reduction allowed for inducing someone to pay ahead of the permitted credit periodc. A reduction in price permitted by one trader to anotherd. A refund of the amount over-charged when the customer's order is invoiced | b |
| 4 | Partnership firms whose liability does not extend to the partner's personal assets are called?a. Limited Partnershipb. Liabilities Partnershipc. Limited Liabilitiesd. LLP: Limited Liability Partnership | d |
| 5 | Dhanush borrows Rs. 5,000 for 2 years at 4% p.a. (simple interest). He immediately lends it to Ramana at 25/4% p.a. for 2 years. Find Dhanush's gain in 1 year.A. 110.50 B. 111.50 C. 112.50 D. 113.50 | c |
| 6 | Quarterly Income Statements must be submitted by borrowers enjoying working-capital (WC) limits of what amount?a. 5 crore & above b. 10 crore & above c. 25 crore & above d. 50 crore & above | b |
| 7 | Goods worth Rs. 800 withdrawn by the proprietor for personal use were not posted to the Drawings account. What is the rectification?a. Debit Suspense A/c Rs. 800, Credit Drawings A/c Rs. 800b. Debit Drawings A/c Rs. 800, Credit Suspense A/c Rs. 800c. Debit Suspense A/c Rs. 800d. Credit Drawings A/c Rs. 800 | b |
| 8 | If cash is deposited into the bank. In a 3-column cash book on which side is it recorded?a. Payment side b. Receipt side c. Both sides d. Not recorded as it is a contra entry | c |
| 9 | As of 2.2.2019 the Cash Book shows a bank OD of Rs. 9,850. Cheques yet to be presented = Rs. 15,250; deposits awaiting clearance = Rs. 21,820. Balance as per pass book?a. Rs. 3,280 O/D b. Rs. 16,420 O/D c. Rs. 3,280 d. Rs. 16,420 | b |
| 10 | By what other name is the Cash Flow Statement (CFS) known?a. Statement of 'Changes in Financial Position' on a cash basisb. Statement accounting for variation in cashc. Both a & bd. None of the above | c |
| 11 | Which statement is INCORRECT when debtor turnover is calculated as a time period?a. It is also called the debtor velocity ratiob. It is calculated as debtors / sales x 12c. It is calculated as sales / debtors x 12d. It is called the debt collection period | c |
| 12 | For making adjustments in respect of closing stock. Which account is debited?a. Purchase A/c b. Trading A/c c. Closing Stock A/c d. Balance Sheet asset side | c |
| 13 | Net profit before tax = 200, interest = 20, tangible net worth = 300, long-term liabilities = 400. Return on Investment (ROI) is?a. 29.50% b. 29.75% c. 31.40% d. 32.80% | c |
| 14 | What is the adjustment entry for booking bad debts?a. Bad Debts debited to P&L A/cb. Provision for Bad & Doubtful A/c debited to Bad Debtsc. Bad Debts debited to Debtors (Cr.)d. P&L A/c debited to Bad Debts (Cr.) | d |
| 15 | Which method is used for the preparation of a Trial Balance?a. Balance Method b. Total (T) Method c. T-cum-Balance Method d. All of the above | d |
| 16 | Which accounting concept is observed at the recording stage (not the reporting stage) of transactions?a. Matching concept b. Business entity concept c. Materiality concept d. Matching concept | b |
| 17 | A principal increases 50% in 5 years at simple interest. What is the compound interest on Rs. 10,000 after 2 years at the same rate?a. Rs. 2,450 b. Rs. 2,100 c. Rs. 1,855 d. Rs. 2,200 | b |
| 18 | What margin money percentage is generally required for an Education Loan above Rs. 4,00,000 for studies abroad? (Confirm current norms on the latest official IIBF/bank notification.)a. No margin b. 5% c. 10% d. 15% | d |
| 19 | What type of error occurs when a sale entered in the Sales Day Book is not posted at all?a. Entry error b. Double entry error c. Error of duplication d. Error of principle | b |
| 20 | Cash not yet due as income is not credited under the ____ system. And cash received whether due or not is taken as income under the ____ system.a. Accrual, accrual b. Accrual, cash c. Cash, accrual d. Cash, cash | b |
Want more? Attempt full-length, timed mock tests to simulate real exam pressure and lock these concepts into long-term memory.
How to Use This AFM Question Set the Smart Way
Solving questions randomly wastes effort. Follow this simple, repeatable workflow to convert practice into marks.
- Attempt first, peek later. Cover the answer column and solve each MCQ on rough paper.
- Tag every question. Mark it as Easy. Tricky or Don't-Know so you know what to revisit.
- Re-derive numericals. For interest. Ratio and BRS sums, write the full working, not just the option.
- Maintain an error log. Note the exact concept you missed; review it within 24 hours.
- Re-test weekly. Re-attempt the same set after 7 days. Aim for 90%+ accuracy before moving on.
A Simple 30-Day AFM Study Plan
You do not need months. You need a focused month. Here is a lean plan you can adapt around your duty hours.
- Days 1-10 (Foundations): Accounting basics. Journal, ledger, trial balance, final accounts and adjustments.
- Days 11-18 (Analysis): Ratio analysis. Cash flow, fund flow and bank reconciliation statements.
- Days 19-24 (Maths): Simple & compound interest. Present value, annuities and depreciation methods.
- Days 25-28 (Banking finance): Capital adequacy. Working capital, cash management and credit concepts.
- Days 29-30 (Full revision): Re-solve this JAIIB AFM questions PDF + 2 to 3 timed mocks.
Bookmark a few quality free guides for quick concept refreshers whenever a topic feels shaky.
Common Mistakes That Cost AFM Marks
Most AFM failures are not about intelligence. They are about avoidable errors under time pressure. Dodge these traps.
- Ignoring contra entries. Cash deposited into bank affects both columns of a 3-column cash book (Q8). Many candidates wrongly mark it as "not recorded".
- Flipping ratio formulas. Debtor turnover as a period is debtors / sales x 12. Not the reverse (Q11). A flipped formula = guaranteed wrong answer.
- Confusing trade vs cash discount. Cash discount rewards early payment (Q3); trade discount rewards bulk buying.
- Misplacing the closing-stock debit. For adjustments. The Closing Stock A/c is debited (Q12). Don't auto-pick the Trading A/c.
- Rushing the maths. Simple vs compound interest problems (Q5. Q17) reward neat, step-by-step working over mental shortcuts.
- Skipping revision of "old" topics. Foundational concepts like accounting principles (Q16) and error types (Q19) repeat often.
Frequently Asked Questions (JAIIB AFM)
What does AFM stand for in JAIIB?
AFM stands for Accounting & Financial Management for Bankers. It is a core JAIIB paper conducted by IIBF that tests accounting. Financial statements, ratio analysis and financial mathematics relevant to banking.
Is JAIIB AFM difficult to pass?
AFM is considered challenging mainly because of its numerical portion. However. With consistent practice using a JAIIB AFM questions PDF. Strong formula command and timed mocks, most candidates clear it comfortably. The paper is predictable once you master high-yield topics.
How many questions and what marks does AFM carry?
The exact number of questions. Marks per question and negative marking can change between exam cycles. Please confirm on the latest official IIBF notification before your attempt so you plan your time. Accuracy targets correctly.
How should I prepare for the numerical part of AFM?
Build a one-page formula sheet for interest, ratios, depreciation and present value. Then solve a fixed number of numericals daily, always writing complete working. Re-attempt this question set and full-length mock tests until your speed and accuracy both improve.
Where can I get free JAIIB AFM mock tests and study material?
You can practise free, exam-style AFM questions through our mock tests and read concept-wise free guides on the platform. Combine them with this solved question set for a complete, no-cost revision toolkit.
Final Words: Turn AFM Into Your Strongest Paper
AFM rewards discipline more than talent. If you practise this JAIIB AFM questions PDF sincerely. Log your mistakes. And attempt timed mocks every week. You will walk into the exam hall calm and prepared.
Start today. Solve the 20 MCQs above. Build your formula sheet, and commit to the 30-day plan.
One focused month is all it takes to clear Accounting &. Financial Management for Bankers in a single attempt. You have got this.
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