3 A AFM Basic Accountancy Procedures
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the fundamental accounting equation that forms the basis of double-entry bookkeeping?
The fundamental accounting equation is Assets = Liabilities + Capital (Owner's Equity), meaning every transaction affects at least two sides of this equation equally.
What is the primary objective of accounting in a banking organisation?
To record, classify, and summarise financial transactions accurately.
What does the term 'debit' signify in double-entry bookkeeping?
Debit refers to the left side of a ledger account; it increases asset and expense accounts and decreases liability, capital, and income accounts.
What is the Double Entry System of bookkeeping?
Every transaction has equal debit and credit entries in two accounts.
What is a Journal in accounting?
A Journal is the book of original entry where all financial transactions are first recorded in chronological order with both debit and credit entries before posting to the ledger.
What is a Purchases Day Book used for in accounting?
Recording all credit purchases of goods systematically on a daily basis.
What is a Ledger in the context of accounting?
A Ledger is the principal book of accounts that contains all individual accounts (real, personal, and nominal) and is prepared by posting entries from the Journal.
What is a Sales Day Book maintained for in accounting?
Recording all credit sales of goods in a chronological order.
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