Inside the JAIIB AFM Book: 35 Chapters, 4 Modules, 524 MCQs

It is 9:40 pm. The branch closed late, the day-end figures took longer than usual, and you have opened the Accounting and Financial Management syllabus on your phone. Thirty-five chapters stare back at you, from bank reconciliation to derivatives to marginal costing. Where do you even start?

This article is a guided tour of the JAIIB AFM book: how it is organised, what a single chapter looks like, and how to use it when you have only an hour or two a day. Even if you never buy it, the method here works with any study material, so take what is useful.

Why AFM feels heavier than it is

AFM is the paper where working bankers often feel they should be comfortable, because they handle vouchers and balances daily. Then the exam asks about Ind AS, cash flow statements, YTM, lease financing and standard costing, and the comfort disappears. The paper has four very different personalities in one syllabus: bookkeeping, financial statements, finance mathematics, and tax plus costing.

The first fix is not more hours. It is a map. Once you know which module you are in and what kind of thinking it needs (rules, layouts, formulas or procedures), the paper stops looking like one giant block.

Four modules, four kinds of effort

• Module A rewards clear concepts and entry-level accuracy.
• Module B rewards knowing formats: final accounts, company accounts, cash flow.
• Module C rewards formula recall and practice with numbers.
• Module D mixes statutory facts (income tax, GST) with costing techniques.

You can follow that map with any material. If you want it laid out for you chapter by chapter, that is what the JAIIB AFM book is built around.

The JAIIB AFM book at a glance

Here are the plain facts, as listed on the book page. It is a printed book of 128 pages, 2026 edition, with 35 chapters grouped into four modules, and 524 MCQs. Two extras come with it: a Numericals Compendium and a Formula Cheat Sheet.

128 pages for 35 chapters is a deliberate choice. This is a concise, revision-oriented book. It does not try to replace a full textbook; it tries to be the thing you can finish, and then finish again before the exam.

Module by module: what you will find

Module A: Accounting Principles and Processes (11 chapters)

This module starts with the definition and scope of accounting, including accounting standards and Ind AS, then moves through basic accountancy procedures, cash and subsidiary books, ledgers and the bank reconciliation statement. It continues with the trial balance, rectification of errors, adjusting and closing entries, depreciation, capital versus revenue expenditure and bills of exchange. The last chapters are closest to your job: operational aspects of accounting entries, back office handling of unreconciled entries, and bank audit and inspection.

Module B: Financial Statements and Core Banking Systems (7 chapters)

Balance sheet equation, preparation of final accounts, Company Accounts I and II, cash flow and funds flow, final accounts of banking companies, and core banking systems with accounting in a computerised environment. This is the module where seeing the layout again and again matters more than reading the theory once.

Module C: Financial Management (10 chapters)

An overview of financial management, ratio analysis, then three financial mathematics chapters: interest and annuities, YTM, and forex arithmetic. After that come capital structure and cost of capital, capital investment decisions for term loans, equipment leasing, working capital management and derivatives. This is the numerical heart of the paper.

Module D: Taxation and Cost Accounting (7 chapters)

Income tax, TDS and deferred tax in one chapter, Goods and Services Tax, an overview of cost and management accounting, costing methods, standard costing, marginal costing, and budgets and budgetary control.

What one chapter looks like

Every chapter follows the same rhythm, so you stop wasting energy deciding how to study and just start. Think of it as three steps:

1. Concise notes. The concept in plain language, with the working shown where numbers are involved.
2. Key points. The few things you must be able to recall without looking: definitions, formats, conditions.
3. MCQs. Questions on that chapter alone, so you test what you just read while it is fresh.

Take the Bank Reconciliation Statement chapter as an example of how you would use it. Read the notes once, slowly. Close the book and write the reasons for differences between the cash book and the passbook from memory. Open the key points to check what you missed. Then attempt the MCQs. Twenty-five focused minutes, and you have actually studied, not just read.

The two extras that matter close to the exam

The Numericals Compendium and the Formula Cheat Sheet are the parts you will return to most often in the last weeks. AFM is a paper where a single forgotten formula costs marks, and where doing ten numericals in a row teaches more than reading ten pages. Keep the formula sheet where you see it daily, and use the compendium for short practice bursts, such as a quick set of YTM or ratio problems during a lunch break.

A four-step routine for tired evenings

Here is a routine that works with a full-time job. It does not need long blocks, only consistency, and it fits the JAIIB AFM book chapter structure naturally.

1. Skim the module map (5 minutes). Know which module you are in and what it asks of you.
2. Read the concise notes (20 to 30 minutes). One chapter, no phone.
3. Learn the key points (10 minutes). Say them aloud or write them on a card.
4. Solve the chapter MCQs (15 minutes). Note every mistake in one running list.

Mix the modules across the week. A numerical-heavy chapter from Module C on Saturday morning when you are fresh, and lighter theory chapters from Module A or D on weekday nights. Revisit your mistake list every Sunday.

Pair the book with free practice

One honest limit: a book alone will not give you exam-hall speed. Once you finish a module, take timed practice on the free mock tests, and look through the free study material for extra revision. If you want the full JAIIB path across papers, the JAIIB course page shows what is available.

Who gets the most out of this book

• Working bankers with limited time who need a finishable, chapter-wise route through AFM.
• Candidates revising after a first attempt, who already know the topics and need notes, key points and MCQs in one place.
• Anyone who prefers paper over screens after a day of screens at the branch.

It is less suited to someone who wants a detailed textbook with long derivations of every concept. Be honest with yourself about which learner you are. You can read the book page and the free sample before deciding, and browse the full range at iibf.store/books.

At the time of writing the book is listed at ₹699 against an MRP of ₹1,289 (46% off). Prices may change, so the book page always has the current figure. For the official exam schedule and syllabus for the upcoming exam cycle, check the IIBF website.

Final word

AFM stops being frightening when it becomes 35 small, repeatable sessions. Whether you use the JAIIB AFM book or another source, build the loop of notes, key points and MCQs, protect two or three evenings a week, and keep a mistake list. For more preparation guides, see the iibf.store blog.

Frequently asked questions