JAIIB Accounting and Finance for Bankers Mock Tests Set 13

___________ is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc.


Options are :

  • Authorization
  • Truncation.
  • Scanning.
  • Digitisation

Answer :Truncation.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

___________system of recording transactions in books is not a scientific one.


Options are :

  • Multiple Entry
  • No Entry
  • Single Entry
  • Double Entry
  • None of the above.

Answer :Single Entry

Share of a limited company can be classified into equity and Preference .Share of a limited company can be classified into


Options are :

  • equity and Preference
  • Preference and equity
  • Preference Only
  • All of the above

Answer :equity and Preference

Returns of goods from the customers of the firm should be credited to ________ and debited to ___


Options are :

  • Customer account, sales returns
  • Sales account, sales returns
  • Customer account , sales account
  • Sales returns, customer account

Answer :Customer account, sales returns

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Which of the following is not a Core Banking Service?


Options are :

  • Advances
  • Letter of Credit
  • Reporting
  • Deposits

Answer :Reporting

When a person borrows money, he pays in return some extra money to the lender . This extra money is called-     


Options are :

  • Principal Amount
  • Dividend
  • Interest
  • Bonus
  • None of the above.

Answer :Interest

Under inflationary conditions, ______ method will show highest value of closing inventory?


Options are :

  • FIFO
  • LIFO
  • Weighted Average
  • None of the above

Answer :FIFO

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Which of the following is true:


Options are :

  • Balance of real account, personal account and nominal account are carried over to the next accounting period
  • Debit side of the cash book is called payment and credit side is called receipt
  • Discount allowed by the creditor is recorded on the payment side of the cash book
  • A person who owes a firm some amount is called debtor.

Answer :Discount allowed by the creditor is recorded on the payment side of the cash book

Which one of the following is a core feature of CBS?


Options are :

  • On-line Real-time processing.
  • Transactions are posted in batches.
  • Data bases are maintained as per branch
  • Loan Processing is done at branch.

Answer :On-line Real-time processing.

Process of transfer of an entry from the journal to ledger is called:


Options are :

  • Posting
  • Journalizing
  • Summarizing
  • Recording

Answer :Summarizing

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Cash which is not due as income of the business is not credited to income under ________ system and cash received whether due or not is taken as income of the business under _______ system:


Options are :

  • Accrual, accrual
  • Accrual, cash
  • Cash, accrual
  • Cash, cash

Answer :Accrual, cash

The branches exclusively set up to cater the needs of industries in the small, medium and/or large sectors


Options are :

  • Personal Banking branches
  • Commercial or Industrial Finance branches
  • Recovery branches
  • Forex branches

Answer :Commercial or Industrial Finance branches

A firm charges depreciation of ?10000 for the first two years on as assets. In the 3rd year it charges ?5000 and in the 4th year ?8500. This is considered undesirable because of application of:


Options are :

  • Convention of conservatism
  • Convention of consistency
  • Convention of materiality
  • Convention of full disclosure

Answer :Convention of consistency

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

If the true discount on a sum due 2 years hence @ 5% per annum be ? 300, then the sum due is


Options are :

  • ? 3,000
  • ? 3,200
  • ? 3,300
  • ? 3,500
  • ? 3,600

Answer :? 3,300

If a purchase return of ?1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers' account, the total of the


Options are :

  • Trial balance would show the debit side to be ?1,000 more than the credit
  • Trial balance would show the credit side to be ?1,000 more than the debit
  • The debit side of the trial balance will be ?2,000 more than the credit side
  • The credit side of the trial balance will be ?2,000 more than the debit side

Answer :The debit side of the trial balance will be ?2,000 more than the credit side

While recording a transaction, when is not clear whether it is on cash basis or on credit basis, what would be done:


Options are :

  • It will be taken as a cash transaction
  • It will be taken as a credit transaction
  • It will not be recorded s it will create confusion
  • It will be recorded after talking to the originator

Answer :It will be taken as a cash transaction

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

A cash book is of different types such as (a) simple cash book (b) double column cash book (c) there column cash book


Options are :

  • A to c all
  • Only a and b
  • Only a and c
  • Only b and c

Answer :A to c all

The true discount on ? 5,150 due 4 months hence is ? 150. The rate per cent is -


Options are :

  • 5%
  • 6%
  • 7%
  • 8%
  • 9%

Answer :9%

Banker's gain is -


Options are :

  • Amount + Banker's Discount
  • Amount - Banker's Discount
  • Amount - Present Value
  • True Discount + Banker's Discount.
  • Banker's Discount - True Discount.

Answer :Banker's Discount - True Discount.

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

Bank paid some interest to the party. Firm deposited one cheque with the bank. The entry in respect of these two would be made first by ____ and ____ respectively:


Options are :

  • Bank, bank
  • Bank, firm
  • Firm, firm
  • Firm, bank

Answer :Bank, firm

The bank pass book shows a balance of ?30000. its comparison with the cash book shows that bank has debited a sum of ?100 as incidental charges and a cheque of ?2000 issued by the firm has not been paid by the bank so far. The balance as per cash book is ?______.


Options are :

  • 32100
  • 31900
  • 27900
  • 28100

Answer :28100

My daughter is 5 years old. In order to provide a sum ? 1,00,000 when she Completes 21 years, I have decided to invest a fixed sum of money every year beginning immediately and the last payment will be when she completes 21 years Find the fixed sum of money assuming the money earns compound interest at the rate of 8%p.a.


Options are :

  • ? 1,483 approx.
  • ?1,400 approx.
  • ?1,500 approx.
  • ? 2,966 approx.
  • ? 3,500 approx.

Answer :? 2,966 approx.

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

A firm has leased a leasehold property for 3 years on 1st January, 2005 for ?1,00,000 and his decided to replace it by creating a depreciation fund. The rate of compound interest on investments is 55 p.a. Calculate the annual depreciation (i.e. the amount to be invested). 


Options are :

  • Between ? 30,000 and ? 31,000
  • Between ? 31,000 and ? 32,000
  • Between ? 32,000 and ? 33,000
  • Between ? 33,000 and ? 34,000
  • Between ? 34,000 and ? 35,000

Answer :Between ? 31,000 and ? 32,000

Trial Balance is a:


Options are :

  • Statement
  • Account
  • Summary
  • Ledger

Answer :Statement

(a) Credit balance of the pass book means it is a deposit account (b) credit balance of the cash book means it is and overdraft account (c) debit balance of the pass book means it is an overdraft account (d) debit balance of the cash book means it is an overdraft account:


Options are :

  • a to d are correct
  • a to c only correct
  • a, c and d only correct
  • b to c only correct

Answer :a to c only correct

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

If a purchase return of ?84 has been wrongly posted to the debit of the sales return account, but had been correctly entered in the suppliers account, the total of the trial balance would show


Options are :

  • The credit side to be ?84 more than debit side
  • The debit side to be ?84 more than credit side
  • The credit side to be ?168 more than debit side
  • The debit side to be ?168 more than credit side

Answer :The debit side to be ?168 more than credit side

When balance in the cash book is the starting point, the cheque deposited and not credited by the bank are_______.


Options are :

  • Added
  • Deducted
  • Not changed
  • None of the above

Answer :Deducted

ABC Ltd. wants to lease out an asset costing ? 3,60,000 for a five year period. It has fixed a rental of ? 1,05,000 per annum payable annually starting from the end of first year. Suppose rate of interest is 14% per annum compounded annually on which money can be invested by the company. Is this agreement favourable to the company?


Options are :

  • Yes
  • no
  • Can't Say

Answer :Yes

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Capital budgeting involves


Options are :

  • Selection of projects for implementation
  • Estimation of cost benefit of projects
  • Generation of investment ideas
  • All of the above
  • None of the above.

Answer :All of the above

________ is the statements showing debit and credit balance taken from ledger including cash and bank balances as on a particular date:


Options are :

  • Reconciliation
  • Trail balance
  • Profit and loss account
  • Balance sheet

Answer :Trail balance

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions