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JAIIB MockTest PPB
JAIIB MockTest PPB
Debit what comes in, Credit what goes out will represent ----Nominal accounts
Real accounts
Personal accounts
Artificial accounts
Creditor
Payee
Seller
Promotional expenditure of Rs.5,00,000/- for promoting export sales in a new country which
resulted in high success is ----Capital expenditure
Revenue expenditure
Deferred revenue expenditure
Discharge of liability
Bad debts recovered (written off in the same year) are recorded as ----Debtors account debit and bank account credit
Bank account debit and debtors account credit
Bank account debit and bad debts account credit
Debtors account debit and bad debts account credit
Accounting conventions
GAPP
US - GAPP
Accounting records
Creditor
Payee
Seller
Balance sheet is
prepared to show
----Financial position
of the business
concern at the
point of time
Results of
business of over
a period of time
A statement
showing assets
and liabilities
Both (a) and ( c)
above
Which of the
following is true ?
Nominal account
cannot be
transferred to
balance sheet
Balance sheet is
an account
Carriage inward
is debited to
profit and loss
account
Closing stock is
always valued at
cost price
Payment of
Rs.35,000/- to Mr.
A for goods
purchased from him
on credit is ----Capital
expenditure
Revenue
expenditure
Deferred
revenue
expenditure
Discharge of
liability
Payment of lease
rent of Rs.90,000/for the factory for
current month is
----Capital
expenditure
Revenue
expenditure
Deferred
revenue
expenditure
Discharge of
liability
Receipt of
Rs.1,000/- on
account of sale old
tyers of the car is
----Capital receipt
Revenue receipt
Receipt against
dues
Deferred
revenue receipt
Bad debts
recovered (written
off in the same
year) are recorded
as ----Debtors account
debit and bank
account credit
Bank account
debit and
debtors account
credit
Bank account
debit and bad
debts account
credit
Debtors account
debit and bad
debts account
credit
LAN/WAN is used
by ----Single user
Double user
Multiple users
Limited users
When share
applications are
received, what
accounting entry is
recorded ?
Debit bank
account and
credit share
capital account
Debit bank
account and
credit share
allotment
account
Debit bank
account and
credit share
application
account
Debit bank
account and
credit share
adjustment
account
Which of the
conditions for issue
of non-voting
equity shares is
applicable ?
Issue of nonvoting equity
shares shall be
authorised by the
Articles of
Association of
the company and
approved by the
shareholders at
their general
body meeting by
passing a special
resolution
Such
shareholders are
entitled to all
rights and bonus
shares but do not
enjoy voting
rights
Only 25% of the
paid-up capital of
the company can
be issued as
equity shares
without voting
rights
All of the above
Which of the
following is not
part of "Fixed
Assets" in a
company balance
sheet ?
Goodwill
Stock in trade
Patents,
trademarks and
designs
Plant and
machinery
A company may
follow ----Cash basis of
accounting
Mercantile basis
of accounting
Hybrid method
of accounting
None of these
LEGAL
ASPECTS
A banking company can hold the immovable property beyond stipulate period if ----it is required for its own
use
it is for rental purpose
the property has good
development potential
property is acquired in
satisfaction of its claims
Between customers of
banks
Between banks
Between banks and the
customers
Between banks and
customers belonging to
weaker sections
A banker is entitled to debit the customers account in case of forgery of customers signature
on the cheque provided ----The banker does not doubt the bonafides of the bearer of the cheque
The banker examines the cheque under an ultra violet lamp
The signature though forged tallies in all respects
None of the above
A banking company can hold the immovable property beyond stipulate period if ----it is required for its own use
it is for rental purpose
the property has good development potential
property is acquired in satisfaction of its claims
The Banking Ombudsman is instituted mainly for settling disputes ----Between customers of
banks
Between banks
Between banks and the
customers
Between banks and
customers belonging to
weaker sections
The capital of the State bank of India is held ----By Central government alone
Mainly by Reserve bank
By the subsidiary banks
The government and the public only
A banker is entitled to debit the customers account in case of forgery of customers signature
on the cheque provided ----The banker does not doubt the bonafides of the bearer of the cheque
The banker examines the cheque under an ultra violet lamp
The signature though forged tallies in all respects
None of the above
A banker can claim protection in respect of payment of cheque under ----Banking Regulation Act
Negotiable Instruments Act
SEBI Act
All of the above
he term Material Alteration in the case of a negotiable instrument means ----Any alteration to the instrument
Any alteration of an instrument which
varies the rights, liabilities or legal
position of the parties
Only alteration which either increases
the amount or extends the date
Only alteration that changes the payees
name
In a cheque, the signature and writing were forged, and forgery was so perfect that it was not
possible to detect it with the naked eyes. The bank can plead that the payment was made ----under mistake
because forgery was very perfect
in good faith
In Bank guarantees the bank makes payment on ----Being convinced that the beneficiary has incurred loss
On being sued by the beneficiary
On invocation of guarantee and after seeking concurrence of
the debtor
Merely on demand by the beneficiary
Hypothecation is ----Pledge
Mortgage of movable property
Both (a) and (b) above
None of the above
A contract by a bank to lend money to an individual will be governed by which of the following
laws ?
Reserve Bank of India Act
Indian Contract Act
Banking Regulation Act
Money Lenders Act
On what ground the complaint for deficiency in banking service can be filed with the Banking
Ombudsman ?
Refusal to open deposit accounts without any valid reason for refusal
Non sanction of loan
Not accepting the compromise proposal in NPA account
Banks taking possession of security and sale thereof
A proposes to sell the house to B. The proposal is complete ----When A sends his proposal
When B receives letter
Both (a) and (b) above
None of the above
A person signed without reading the contents of standard format of document, he is ----Bound by the terms of the document
Not bound by the terms of the document
Entitled to outrightly reject the document
None of the above
The delivery of goods to the Bailee means ----An act, the effect of which is putting the goods in the possession of intended bailee
Delivering cash to the intended Bailee
Delivering immovable property to the intended Bailee
None of the above
'A' promises to paint a picture for B by certain day at certain price. A dies before that day
without painting the picture. In that event ----As representatives can be forced to paint the picture
'B' can get decree for specific performance of Contract
(a) and (b) above
none of the above
There were two co-sureties. The release of one of the co-sureties -----
A guarantees to C payment for iron to be supplied by him to B to the amount of 2000 tons. B
and C have privately agreed that B should pay 5 rupees per ton beyond the market price. Such
excesses had to be applied in liquidation of old debt. This agreement is concealed from A.
Therefore A ----Is liable as a surety
Is partly liable as a surety
Is not liable as a surety
None of the abov
In a Contract of Bailment Bailor is bound to disclose the defects in the goods bailed to Bailee
----of which the Bailor is aware
which materially interferes with the use of them
which exposes the Bailee to the extraordinary risks
all of the above
Valuation of inventory is done using various methods. One such is FILO. The full form of this is
first in lost out
first in last out
firm in lest out
none of the above
Mr.A is not maintaining the minimum balance in his account and is in the habit of issuing
cheques without maintaining sufficient balance.,His account has become an undesireable
account due to unsatisfactory operations.He does not agree to close the account even after
repeated oral requests .In this case,the bank has
right to close the account once cheque book gets exhausted
b. right to close the account after serving notice and can close the account on
expiry of the notice period
c. right to close the account after giving public notice in the notice board of the
bank
no right to close the account under the Banking Ombudsman scheme
ABC Bank Ltd filed a suit exclusively against the guarantor and did not opt to proceed against
the borrower.In this case,which of the following is correct?
Guarantor is a favoured debtor and the banks action is legally not tenable
the bank has no right to proceed against the guarantor without concurrently
proceeding against the borrower
the bank can not proceed against the surety as surety stands discharged by such
action of the bank
the bank can proceed against the quarantor and the banks action is certainly
tenable
An actionable claim is assigned in favour of more than one assignee at different points of
time.The priority of charge is determined with reference to the date of
execution of notice of assignment
execution of the written instrument for assignment
receipt of notice of assignment
receipt of written instrument for assignment
Mr.A has given his residential building in mortgage to a bank for a housing loan.As he has
defaulted for payment of Income Tax,the Income Tax Authorities sold the building for recovering
the dues.In this case,
Bank loan has precedence over income tax dues
Income tax dues are Government dues and hence they enjoy priority
Both bank and Income Tax Department can have pro rata claim
Bank will have precedence only if it is a registered mortgage
A full-fledged ATM can offer the following services to customers 1. Cash Dispensing 2. Deposit of
Cash/Cheques 3. Utility Payments like telephone bills, electricity bills etc 4. Issue of Cheque
books Choose the most appropriate answer from the following
Statement 1,2,3 and 4 are true
Statement 1,2 and 3 are true
Statement 2,3 and 4 are true
Statement 1,3 and 4 are true
Instruction Processing
Settlement Processing
Liquidity Management
Profitability Management
MICR technology used for clearance of cheques by banks refers to ----Magnetic Ink Character Recognition
Magnetic Intelligence Character Recognition
Magnetic Information Cable Recognition
Magnetic Insurance Cases Recognition