JAIIB Exam 2025 – AFM Important Questions MCQs Quiz-4

08/02/2025

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JAIIB Exam 2025 AFM Important Questions MCQs Quiz-4

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB AFM MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB AFM quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1 Is the passbook a mirror image of the cash book?
A) Yes, always, without any discrepancies
B) No, because the entries are recorded differently in both books
C) Yes, but only in terms of opposite debit and credit entries, though timing differences exist
D) No, because a passbook and a cash book are unrelated

Q.2 Which of the following best explains why the balances in the passbook and cashbook may differ?
A) The bank and the account holder follow entirely different accounting principles, leading to systematic differences.
B) Errors such as under-casting, over-casting, and incorrect postings can cause discrepancies between the passbook and cashbook balances.
C) The passbook records only transactions initiated by the bank, while the cashbook records only transactions initiated by the account holder.
D) Differences arise solely due to delays in cheque clearance and bank processing times

Q 3 Which of the following entries do not require a change in the cashbook but cause a temporary difference between the passbook and cashbook balances?
A) Bank charges deducted by the bank but not yet recorded in the cashbook
B) Interest credited by the bank but not yet recorded in the cashbook
C) Cheques issued but not yet presented for payment
D) Errors in recording transactions in the cashbook

Q.4 Which of the following best describes transactions that originate in the passbook before being recorded in the trader’s cashbook?
A) Transactions initiated by the trader but pending bank clearance, such as issued or deposited cheques.
B) Transactions that require no bank intervention and are solely recorded in the trader’s cashbook.
C) Transactions executed by the bank on behalf of the trader, such as bank charges, standing instructions, and interest adjustments.
D) Transactions that appear simultaneously in both the cashbook and passbook without any time lag.

Q.5. Why is bank reconciliation necessary?
A) To detect errors and discrepancies between the cash book and passbook balances.
B) To ensure that all cheques issued are immediately reflected in the bank statement.
C) To avoid recording transactions in both the cash book and passbook.
D) To eliminate the need for maintaining a cash book

Q.6 What is the primary reason for differences between the cash book and passbook balances?
A) The bank and the trader use different accounting systems.
B) The trader records transactions immediately, while the bank records them upon clearance.
C) The bank deliberately delays updating transactions.
D) The trader does not maintain records of deposits and withdrawals.

Q.7. A bank statement is a duplicate of:
a) A customer’s account as maintained in the bank’s records
b) The cash column in the cash book
c) The cash column in the bank book
d) None of the above

Q.8. cash book of XYZ Ltd. shows a balance of ₹25,000 as on 31st December 2023. On comparison with the bank statement, the following discrepancies were found:
1.A cheque of ₹7,500 was issued on 28th December but had not yet been presented for payment.
2.A cheque of ₹5,000 was deposited on 29th December but was not yet credited by the bank.
3.Bank charges of ₹400 were deducted by the bank but were not recorded in the cash book.
4.A customer directly deposited ₹3,600 into the company’s bank account, which was not recorded in the cash book.
5.A cheque of ₹2,200 issued to a supplier was recorded twice in the cash book.

Q.9. The cash book balance of a trader does not agree with the balance as per the bank passbook, which shows a balance of ₹18,250. Upon scrutiny, the
following discrepancies were identified:
1. On 1st January, the payments side of the cash book was undercast by ₹120.
2. One deposit of ₹180 was recorded in the cash book as if there was no bank column.
3. On 18th January, the debit balance of ₹1,800 as of the previous day was brought forward as a credit balance.
4. Of the total cheques amounting to ₹12,000 drawn in the last week of January, cheques aggregating to ₹8,500 were encashed in January.
5. A dividend of ₹300, collected by the bank, and a subscription of ₹150, paid by it, were not recorded in the cash book.
6. Prepare a Bank Reconciliation Statement as of 31st January