JAIIB Sample Papers 2012 with Answers, Solutions, JAIIB Question Papers, Sample Papers of JAIIB.

JAIIB Sample Papers 2012- I:1) Reserve Bank of India‟s functions are classified into: a) Supervisory & Regulatory b) Promotional & Developmental c) Refinance Activities d) All of the above Ans:- (d) 2) Minimum Bank Rate is: a) 3% b) 4% c) 5% d) None Ans:- (d) 3) Sec ---- of RBI Act,1934 gives sole power to RBI to issue currency notes a) 10 b) 18 c) 22 d) 26 Ans:- ( c ) 4) KYC means a) Know Your Customer very well b) Know Your existing Customer very well c) Know Your prospective Customer very well d) Satisfy yourselves about the customer‟s identity and activities. Ans:- (d) 5) In a Garnishee Order, the banker on whom garnishee order served is: a) Judgement Debtor‟s Creditor b) Judgement Creditor‟s Creditor c) Judgement Creditor‟s Debtor d) Judgement Debtor‟s Debtor Ans:- (d) 6) Sec 131 of NI Act,1881 extends protection to the a) Paying Banker b) Collecting Banker c) Advising Banker d) Issuing Banker Ans:- (b) 7) Hypothecation is applicable in the case of a) Movable goods b) Immovable property c) Book debts d) Corporate guarantee Ans:- (a) 8) A cheque is dated 12/05/05.the due date is:

a) 12/08/05 b) 14/09/05 c) 12/11/05 d) None Ans:- (d) 9) Charge created on LIC Policy is: a) Hypothecation b) Pledge c) Assignment d) Mortgage Ans:- ( c ) 10) Your bank grants a working capital finance to ABC & Co, a partnership firm, against hypothecation of inventory. The charge is to be registered with Registrar of Companies within a) 30 days from the date of advance b) 30 days from the date of hypothecation agreement c) 30 days from the date of sanction of loan d) None Ans:- (d) 11) Which one of the following is not barred by law of limitation? a) Pledge b) Hypothecation c) Banker‟s lien d) Guarantee Ans:- ( c ) 12) The term “Credit Management” covers a) Capital adequacy norms b) Risk management including Asset/Liability management c) Credit appraisal – decision and review of loans & advances d) All of the above Ans:- (d) 13) Bank‟s Assets are classified in to standard assets, substandard assets doubtful assets and loss assets, based on the recommendations of -------------------- Committee a) Rangarajan b) Narasimham c) Ghosh d) Tandon Ans:- (b) 14) The time taken to convert cash into raw materials, semi finished goods, finished goods and into cash , is known as a) Trade cycle b) Cash cycle c) Operating cycle d) Revolving cycle Ans:- ( c ) 15) A company which pools money from investors and invests in stocks, bonds, shares is called a) A bank

the role of a Special Purpose Vehicle (SPV) is a) To acquire large Non Performing Loans (NPA) b) To acquire such loans from a bank or financial institution c) To acquire such loans for a transfer price.(a) 18) Mr.(b) 19) Tele banking service is based on a) Virtual Banking b) Online Banking c) Voice processing d) Core Banking Ans:.Atmaram as director of a Ltd company expired. The bank a) Can honour the cheque only after obtaining confirmation from other directors b) Can honour the cheque c) Cannot hounour the cheque d) The company should issue a stop payment instructions to the bank Ans:. with or without recourse d) To manage the acquired loans for the purpose of realization or holds them as investment till maturity (d) 21)Securitisation is a process of acquiring the loans classified as a) Bookdebts b) Performing debts c) Bad debts d) Non performing debts Ans:. Bank received a cheque signed by Mr.( c ) 17) John & James are friends aged 14 & 15 respectively.(d) 16) Bancassurance is a) An insurance scheme to insure bank deposits b) An insurance scheme to insure bank advances c) A composite financial service offering both bank and insurance products d) A bank deposit scheme exclusively for employees of insurance companies Ans:. You will a) Allow them to open a joint account to be operated jointly b) Allow them to open a joint account with operating instructions Either or Survivor c) Allow them to open a joint account with operating instructions Former or Survivor d) Allow them to open a joint account with operating instructions Any one or Survivor Ans:.( c ) 20) In a securitisation deal.(d) 22)The minimum percentage of Priority Sector advances to be maintained by foreign banks in India a ) 40% b) 18% c) 32% . They want to open a joint account in your bank.b) An insurance company c) Bancassurance d) Mutual Fund Ans:.Atmaram as director of the Ltd company.

(a) 24) Cash Budget is a statement of a) Cash-Non cash funds b) Cash receipt and Cash payments c) Another name for cash flow d) None Ans:.(d) 26) The apex institution which handles refinance for agriculture and rural development is called: a) RBI b) SIDBI c) NABARD d) SEBI Ans:.(b) 29) Interest is calculated on actual/365 days basis in respect of the following products.d) 60% Ans:. the Mid-Office is responsible for: a) Dealing activities b) Risk Management c) Reconciliation d) Confirmation of deals Ans:. except one : a) Call Money b) Notice Money c) Term Money d) GOI dated securities .(b) 25) In bank‟s parlance credit risk in lending is a) Default of the banker to maintain CRR b) Default of the banker to maintain SLR c) Default of the banker to release credit to the customer d) Default of the customer to repay the loan Ans:.( c ) 23) Loan for fish rearing is covered under Prirority Sector as ----------.( c ) 28) As per FIMMDA‟s guidelines.( c ) 27) Long Form Audit Report (LFAR) is prepared and submitted by a) RBI inspectors b) Internal inspectors c) Statutory auditors d) Concurrent auditors Ans:.advances a) Direct Agriculture b) Indirect Agriculture c) Self Employment Scheme d) Allied to indirect Agriculture Ans:.

(d) 35)Which of the following forms of business are permissible under BR Act: a) Borrowing b) Issuance of Letters of Credit c) Buying and selling of bullion d) All of the above Ans:. The relationship between your bank and XYZ Ltd is: a) Debtor/Creditor b) Creditor/Debtor c) Bailor/Bailee d) Bailee/Bailor Ans:.(d) 32) FIMMDA‟s general principles and procedures are applicable to: a) Fixed Income Markets b) Money Markets c) Derivatives Markets d) All of the above Ans:.(d) 36) A Co-Operative Bank operating in different States are regulated by: a) State Co-Operative Societies Act b) Banking Regulation Act c) Multi Unit Co-Operative Societies Act d) Banking Laws (applicable to Co-Operative Societies) Ans:.State Government 15%. the share holding pattern is: a) Central Government 50%.( c ) 37) In respect of Regional Rural Banks.1.(d) 31) The regulator for Mutual Funds in India is: a) FIMMDA b) AMFI c) RBI d) SEBI Ans:.205.(a) 34) The right of set-off is: a) Customer‟s Right b) Customer‟s Obligation c) Banker‟s Right d) Banker‟s Discretion Ans:. enjoys a CC limit of Rs.(d) 33) Your bank‟s customer XYZ Ltd.00.10.Sponsoring Bank 50% .State Government 35%.(d) 30) Which was the first Mutual Fund started in India: a) SBI Mutual Fund b) Kotak Pioneer Mutual Fund c) Indian Bank Mutual Fund d) None of the above Ans:.Sponsoring Bank 35% b) Central Government 15%.000.State Government 35%.00.Ans:.Sponsoring Bank 15% b) Central Government 50%.00 The CC account shows a credit balance of Rs.

(d) 39) A bank in India.(d) 43) FIMMDA‟s guidelines cover the following products.State Government 50%.(b) 44) Except one of the following others are part of Public Sector Banks: a) State Bank of Hyderabad b) Central Bank of India c) Regional Rural Bank.(b) 38) Law of limitation is not applicable in respect of : a) Advance against pledge of shares b) CC granted against hypothecation of inventory c) Term loan secured by mortgage of Plant & Machinery d) Bank Term Deposit Ans:.( c ) 42) Except one of the following others are known as Non Fund based facilities: a) Letters of Credit b) Bank Guarantees c) Co-acceptance of Bills d) Trust Receipt Ans:. except one: a) Call Money b) Cross Currency Interest Rate swaps c) Commercial Paper d) Certificate of Deposit Ans:.(d) 40) FIMMDA stands for: a) Foreign Exchange Markets and Derivative Markets b) Fixed Income Markets Money Markets and Derivatives Markets c) Fixed Income Markets and Derivatives Markets d) None of the above Ans:.Sponsoring Bank 15% Ans:.(b) 41) The Capital Adequacy Ratio is : a) 6% b) 8% c) 9% d) 10% Ans:. wants to undertake capital market activities.b) Central Government 35%. it should: a) Obtain special license from AMFI b) Obtain special license from FIMMDA c) Both a and b d) Register with SEBI Ans:. sponsored by a nationalized bank d) HDFC Bank .

JAIIB Question Papers. 2006 with Capital of Rs. 1100 (c) Rs.(d) JAIIB Sample Papers 2012 with Answers. Select from the following a sentence which is wrong (a) If assets increase and liabilities do not . Nil (b) Rs.50000.50000 (b) reduces by Rs.33000 and Creditors Rs.30000. the capital of the firm----(a) increases by Rs. Nil. 20. what is the amount of claim to outsiders? (a) Rs. fixed assets are Rs. 2007. 20000 5.(d) 45) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act.Ans:.Ghatge commenced his business on 1st April. Solutions. investments Rs. JAIIB Sample Papers 2012.000.1. He did good business during the year and earned handsome profit. Select from the following . At the end of 31st March. 17000.00. Sample Papers of JAIIB. his financial position was: Fixed Assets Rs. The firm sells goods on credit for Rs. What was his net profit for the year 05-06? . the cost of the goods sold is Rs. the capital will increase (b) If assets increase and liabilities also increase by same sum .600 3.The effect of the transaction is that. 500.500 (d) Rs. current liabilities Rs. 20000 (d) reduces by Rs.500.1881 a) 22 b) 25 c) 31 d) 65 Ans:.1. If the net worth of the business is Rs. (a) The liabilities consist of claims of the owners (b) The liabilities consist of claims of the owners and outsiders (c) The liabilities consist of claims of the outsiders (d) None of the above 2.40000 (c) increases by Rs.000 and bank balance of Rs. a statement which speaks about liabilities of an entity.300. current assets Rs. the capital will remain same (c) A reduction in the amount of assets will amount to equivalent reduction in the net worth (d) An increase in the amount of liabilities with no corresponding increase in liabilities will increase the amount of capital 4.II:1. Mr.300.

36000 (b) Rs.(a) Rs. Select the wrong pair. Rs. 18000 to partner .00.6. select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a.000 c.Financial position 7. From the following . The average net profits expected are Rs.60.78. Commission to Partners Account 10. Rs.Capital (d) Balance sheet . (a) Outstanding expenses . One of the pairs given below is wrong. Partners Salary Account c. None of the above .000 b. balance) – Application of funds (c) Net worth less reserves & surplus .108. (c) In the “Fluctuating Capital Account Method” the balance in the capital account always remains the same (d) The capital account of a partner is required to be opened in both the Fixed Capital Account Method and Fluctuating Capital Account Method 9.find a sentence which is false in respect of partnership (a) If the partnership is following the “Fixed Capital Account Method” salary payable to a partner is credited to the partner‟s current account (b) Drawings made by partners are never entered in the Profit and Loss Appropriation Account.Nominal account (b) Profit and Loss Account (Dr.000.108000 per annum before charging remuneration of Rs.53000 (d) None of the above 6. Drawings Account b.000 d. a. The rate of return expected on capital employed of a firm is 10%. The capital employed in the business is Rs. What is the value of goodwill on the basis of two years purchase of super profits.70000 (c) Rs. Rs. Choose the sentence which speak about illegal association (a) The unregistered association of 10 persons to do banking business (b) The unregistered association of 50 persons to do non banking business (c) The unregistered association of 20 persons to do business other than banking (d) The unregistered association of 10 persons to do business other than banking 8. From the account given below. Interest on Loan Account d.

1. Accountant has passed following entries.000. Select the wrong entry from the following.000 as capital for one fourth share in the future profits. 40.1. but Mr.50.000 (d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs. they admitted C as a partner with 25% share in the profits of the firm. Stock A/c Rs.Rs. 25000 (b) Creditors are revised upwardly by Rs. occurrences are called ----(a) data (b) record (c) file (d) system 15.20000. It was agreed that S will pay Rs.20.3. Select the incorrect sentence. a partner decided to resign from the firm. (a) Debit cash and credit Goodwill for Rs. Premises A/c Rs.00. a partnership firm.11.15000.52000 and Creditors A/c Rs. (c) For Profit on revaluation of assets and liabilities – Debit Old Partners Capital Account in old profit sharing ratio and Credit Revaluation Account (d) For decrease in the value of assets -Debit Revaluation Account and Credit Asset Account 14. a revaluation of assets and liabilities was done and Revaluation account was prepared which showed the following position: At the credit side of Revaluation Account.000 as his share of goodwill which will be retained in business and also bring Rs.000 but was to be revalued at Rs. Rs. B‟s Capital A/c.25000.000 and C‟s Capital A/c. 8000 were shown while at debit side of Revaluation Account Reserve for Doubtful Debts A/c.00.000 13. A‟s Capital A/c. Hence . C. Accountant has interpreted the Revaluation Account as follows. after admission of C would be ----(a) 15:15:10 (b) 20:10:10 (c) 3:1:1 (d) None of the above 12. Q feels that one of the entry is wrong. Mr. The book value of the stock was 41.8000 (c) Premises are revised upwardly by Rs. R were partners of a firm sharing profit and losses in the ratio of 3:2. observations.20000 were shown. choose the entry which is wrong.9.000 (c) Debit Goodwill for Rs. One of the interpretations by him is incorrect.1. In the books of ABC Enterprises.000 and credit Q‟s Capital by Rs. when Mr. Any facts.000 (b) Debit cash and credit S‟s Capital for Rs.Debit Liabilities Account and Credit Revaluation Account. They take S into partnership. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. A and B are two partners in a firm sharing profits and losses as 2:1. Q and Mr. 60000 & R‟s Capital by Rs.00.52000 . (b) For decrease in the value of liabilities.00. Rs.3. (a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account. the new profit sharing ratio . One of the journal entries is wrong. Rs. (a) Stock is revalued upwardly by Rs.00.

20. partners share profit and loss in proportion to the capital contributed by the partners. Following are the journal during the process of application to allotment stage . (a) A member of a company can enter into contract with a company (b) It is compulsory to register a joint stock company (c) If all but one member of a private company becomes insolvent . 17. Select the wrong entry. One of the entries is wrong. arrears of preference dividend are cleared first (d) The Act prohibits the issue of any preference shares which are irredeemable 19. Select the incorrect sentence (a) Whenever. subscribed capital. Select the True statement from the following (a) Interest on drawing is an income to the partnership firm (b) Joint Venture is a permanent partnership firm (c) Goodwill is a tangible asset of the firm (d) In the absence of partnership agreement . dividend cannot be declared (b) The right to claim dividend lapses when there is no profit in case of cumulative preference shares (c) When the company makes profit . there is no profit or inadequate profit. called up capital and paid up capital cannot be same (d) The amount which the company has asked its shareholders to pay is called up capital of the company. (a) Debit bank account and credit share application account ( when application money is received) (b) Debit share application account and credit share capital account (application transferred to share capital account) (c) Debit share capital and credit share allotment account ( for recording allotment money being fallen due ) (d) Debit bank account and credit share allotment account ( for receipt of allotment money) 21. issued capital. the uncalled amount on shares even before it is fallen due . Select the incorrect statement (a) Authorized capital is the capital with which the company is registered (b) Issued capital is equal to its authorized capital (c) Authorized capital.(d) A provision on debtors of Rs.it affects the existence of the organisation (d) Shareholders are not liable for the acts of the company 18. 15.000 is made for doubtful debts 16. Select the incorrect statement in respect of calls in advance (a) The company may accept from shareholders . Select the incorrect statement in respect of companies.

. When the entry recording the re-issue of shares was passed in all.1000 (d) Credit forfeited shares by Rs. 5 per share. 15 Lakh . on first call Rs. payable on application Rs. The debit and credit effect of these four accounts is given below. on allotment Rs.3 (including premium).It was decided to use minimum free reserve for issue of 1:1 bonus shares. issued shares of Rs.2 and on final call Rs. The shares were forfeited and re-issued to Mr. (a) Share Premium Account (Rs. four accounts were affected. 4 Lakh . applied for 100 shares but fail to pay allotment and first call money. Capital Reserve Rs.25 Lakh ( 25. 1 Lakh). One of the accounts is given wrong effect.200 (c) Credit share premium Account by Rs.500 (c) Credit share capital by Rs. Mr. (a) Debit bank account by Rs.000 shares of Rs.5 Lakh.200 (b) Credit Share allotment Account by Rs. X was issued 100 shares of Rs. One of the shareholders. 3 Lakh. Select the same. The liability side of the balance sheet of ABC International Ltd. The accounts and the amount with which the account is debited are given below in sets.5 Lakh).100 (d) Credit Share first call Account by Rs. One of the set is correct.(b) The article of association must permit such acceptance of advance call money (c) Interest on calls in advance can be paid but the maximum is upto 6% (d) The amount of calls in advance is part of the paid up share capital 22. the said shares were forfeited. Select the incorrect statement in respect of utilization of share premium (a) it is used for the purpose of buy back of shares (b) it used for payment of dividend in case of inadequacy of profits (c) it is used for writing off preliminary expenses (d) it is used for issue of fully paid bonus shares 23. General Reserve Account (15 Lakh) & Profit & Loss Account by Rs.2.400 24.4. At this stage.100 each fully paid up)Share premium Rs. DT Ltd.9. is showing following position: Paid up share capital Rs. He failed to pay call money of Rs. Select the source which is not valid for issue of bonus shares (a) Share premium (b) Revaluation reserve created by revaluation of fixed assets (c) Capital reserve (d) Capital redemption reserve 26. Y at Rs. Select that account from the following. (a) Credit Forfeited shares Account by Rs.10 each. General Reserve Rs. Select the account which was wrongly credited. Capital Reserve Account ( Rs.900 (b) Debit forfeited shares by Rs. 15 Lakh and Profit & Loss account Rs.200 25.10 each at 10 % premium.

(a) Live Stock is grouped under the head „current Asset‟ (b) Balance of unutilized monies raised by issue is grouped under the head „Investments‟ (c) Interest paid out of capital during construction is grouped under the head „Miscellaneous Expenditure‟ (d) Vehicles are grouped under the head „Fixed Asset‟ 30.e. Nil Lakh).5 Lakh). Single out the wrong account. each balance sheet subsequent to such reduction or revaluation must show the reduced figures and date of reduction for a period of ---(a) 1 year thereafter (b) 2 years thereafter (c) 3 years thereafter (d) 5 year thereafter 31. General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. (a) Investments in government or trust securities (b) Investments in shares . issued capital. Nil Lakh). Capital Reserve Account ( Rs. Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet. 3 Lakh). 15 Lakh 27.debentures or bonds (c) Immovable properties . Select the incorrect statement in respect of form of balance sheet of companies ( Asset side).(b) Share Premium Account (Rs. (a) sinking fund is shown under unsecured loans (b) Loans and Advances from banks are grouped under the head Secured Loans (c) Unclaimed Dividend is grouped under the head current liabilities (d) Proposed dividend is grouped under provisions. 15 Lakh (c) Share Premium Account (Rs. 2 Lakh (d) Share Premium Account (Rs. In case any sum has been written off on a reduction of capital or revaluation of assets. General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. number of shares multiplied by amount called up per share is shown (c) The amount of unpaid calls is deducted from (b) above (d) The amount of forfeited shares account is shown under Reserves & surplus 28. Capital Reserve Account ( Rs. subscribed capital (b) The called up amount per share is indicated and in the amount column total amount i. 29. (a) Under share capital. General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 1 Lakh). Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side).5 Lakh). One of the accounts is wrongly grouped under the head “Investments” while preparing the balance sheet of the company. the following order is maintained: Authorised capital. Capital Reserve Account ( Rs.

15% c.9 . Investments. 20% b. 1956. Fixed Assets and other Assets are part of Schedule Nos. Select the incorrect statement in respect of “ financial Statements of Banks” (a) a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act . The financial statement of bank consists of ------.--respectively a.7. 1949 (d) Form A gives format of a balance sheet and form “B” gives the format of a profit and loss account 36. 6. One of the accounts is wrongly debited to “Profit and Loss Appropriation A/c” of a company. None of the above 35. The scheduled banks are required by RBI to transfer at least -----.8.(d) Interest accrued on investments 32. 10% d. Name the wrong account debited (a) Interim dividend (b) Proposed dividend (c) Provision for tax (d) Capital redemption reserve 33.schedules (a) 18 Schedules (b) 16 Schedules (c) 17 Schedules (d) Schedules 37. Advances. Select the false statement in respect of assets (a) a banking company is allowed to acquire assets for its own use (b) a banking company is allowed to grant loans against the security of assets belonging to its customers (c) a banking company is allowed to take possession of such assets in case of default committed by the borrower (d) a banking company is not allowed to sale the assets against the security of which it has granted loans 34.of their disclosed profit after adjustment/provision towards bonus to staff a. (b) The Act prescribes special forms of balance sheet and profit and loss account for the preparation of its final accounts (c) These are set out in form A and form B of the first schedule to the Banking regulation Act.

matured term deposit to be shown under----(a) demand deposits (b) saving bank deposits (c) term deposits (d) other liabilities and provisions 41. One of the expenses is wrongly included.8. 7. In banking company. Advances given to a staff by a bank as a employer should be included in----(a) other assets (b) advances (c) investments (d) none of the above 42.10 c. (a) depreciation on motor cars (b) depreciation on stationary and stamps (c) depreciation on furniture (d) depreciation on non-banking assets .9.11. Select this item from the following (a) Income on Investments (b) Profit on sale of investments (c) Profit on revaluation of investments (d) Profit on exchange transactions 40.12 38. Identify that item of expense. 9.9.11 d.Depreciation on bank‟s property is part of “Operating Expenses”. Some of the items included under this category are listed below. 87.b.10. One of the items is a misfit in a group namely „other income‟ of a banking company. 8.10. Liability for partially paid investments in respect of banking companies is grouped under the head----(a) Investments (b) Other assets (c) Other liabilities and provisions (d) Contingent liabilities 39.

The list given below consists of various securities. Select the correct statement in respect of doubtful debts (a) Which has remained NPA for a period not exceeding 18 months? (b) Which has remained NPA for a period exceeding 18 months (c) Which is considered uncollectible by bank/ internal auditor or RBI Inspection (d) None of the above 44. (a) 25% (b) 75% (c) 5% (d) None of the above 46. endorsements and guarantees are shown as----(a) other assets (b) contingent liabilities (c) advances (d) other liabilities and provisions 48. Identify the security which is SLR security (a) Securities issued by local authorities (b) Shares (c) Bonds (d) subsidiaries 47. Select the false statement in respect of banking (a) A company accepting deposits for the purpose of lending or investment is a banking company (b) A manufacturing company accepting deposits from the public and some portion of it is lending to its employees as home loans is a banking company (c) A company besides accepting deposits and lending is dealing in goods in connection with the realisation of a security is a banking company (d) A company besides accepting deposits and lending is in the business of collections or negotiating bills of exchange is a banking company.40%(revised) of total outstanding (b) 10%(revised) of total outstanding (c) 40%(revised) of total outstanding (d) 100%(revised) of total outstanding 45. The investment under “held to maturity” should not exceed -----of bank‟s total investment.43. The provisional requirement for standard asset is----(a) 0. Acceptances. .

from banks and from Others 3. JAIIB Sample Papers 2012.Inter office/branch adjustments(net) JAIIB Sample Papers 2012 with Answers. The list given below provides the close relationship between the items of each pair.Letter of credit register (d) Other liabilities and provisions . Select this account (a) Closing balance of provisions held towards NPA .Opening balance plus additions during the year less deductions during the year (d) Term deposits . JAIIB Question Papers. Identify a pair which is mismatch from the following pairs in respect of Company Accounts .49.unexpired discount (c) Operating Expenses Schedule 14 (d) Other Income . One of the items covered in on of the accounts is wrong.III:1. Sample Papers of JAIIB. One of the pairs has no such close relationship.Profit and Loss Account (c) Ledger book .Share premium (b) Time deposits .Compulsory deposits under excise rules (b) rebate on bills discounted . Identify this pair. (a) Banking company – trustees and executors (b) Form B .Matured time deposits (c) Borrowings in India . Identify a pair which is mismatch from the following pairs in respect of Company Accounts (a) Miscellaneous Expenditure – Preliminary Expenses (b) Contingent Liabilities – footnote to balance sheet (c) Debentures – Unsecured Loans (d) Outstanding Expenses – Current Liabilities 4.interest on advances plus income on investments plus interest on deposit with RBI plus income earned by way of dividends from subsidiaries plus discount on bills less unexpired discount (c) Reserves & surplus . The information given in the pair is pertaining to banking companies (a) Reserves & surplus .Refinance from NABARD (d) Other Liabilities & Provisions . The name of the accounts with the coverage of various items in building that account is given below. Choose the wrong pair from the following. Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies (a) Demand Deposits . Solutions.Opening Balance plus provisions made during the year less write off of bad debts/write back of excess provisions (b) Interest Earned .Profit on sale of investments less loss on sale of investments 2.Schedule 5 50.

5. the adjustments [(i) to (iv)] are to be made by passing necessary entries. Investments. balance) .000 & Credit Outstanding Liability for Workers compensation AND Debit Profit and Loss Account by Rs.30. Fixed Assets.5. balance). 5000 is to be made for doubtful debts (a) Debit Dividend by Rs. (a) Rate of dividend exceeds 10% but not 12.Transfer to reserve @ Nil% (b) Rate of dividend exceeds 12.000 & Outstanding Liability for Deb.5.000 at 15% (ii) Write off Rs.5.25. Miscellaneous Expenditure.500 (b) Debit Profit and Loss Account by Rs.3.5. Current Assets & Loan Advances.25. Select the wrong pair.000 and Credit Preliminary Expenses (c) Debit Debenture Interest by Rs. Current Assets & Loan Advances. Profit & Loss Account(Dr.000 and Credit Debenture Interest by Rs.000 & Credit Provision for Tax by Rs. Select the wrong entry. 25. 25.000 consisting of shares of Rs.2000 (c) Debit Profit & Loss Account by Rs.18.50.18. the adjustments [(i) to (iv)] are to be made by passing necessary entries.(i) Depreciate plant .000 (d) Debit Profit & Loss by Rs. Select the orderly presented item from the following.25. (a) Debit Depreciation on plant by Rs.Transfer to reserve @ 10% 6. Select the wrong entry.000 from Preliminary Expenses (iii) Half years debenture interest due (12% debentures of Rs.00.000 & Credit Provision for doubtful debts by Rs.50% but not 15%.Transfer to reserve @ 5% (c) Rate of dividend exceeds 15% but not 20%.25.(i) Provide dividend 5% of paid up share capital (Share capital of Rs.000 and Credit Wages by Rs. While preparing the final accounts of the company.49. Companies are required to transfer certain percentage of their profit after tax to reserves.25000 (b) Prepaid Insurance by Rs.25. In respect of asset side of the balance sheet one of the items is presented in a proper order. Interest by 18. 10 each fully paid) (ii) Insurance for unexpired period is Rs.00.2000 & Insurance by Rs.000 AND Debit Profit and Loss Account by Rs. Investments.18000 (d) Debit Wages by Rs.WDV of which is Rs.000 7.500 and Credit Depreciation on plant by 49.000) (iv) a claim of Rs.500 credit plant by 49. Profit & Loss Account(Dr. While preparing the final accounts of the company. Profit & Loss . rests are disorderly. Miscellaneous Expenditure (c) Fixed Assets.50% (d) Rate of dividend exceeds 20% . (a) Investments.000 for workmen‟s compensation is disputed by the company.Transfer to reserve @ 7. One of the entries passed is wrong entry. Current Assets & Loan Advances. The various rates of transfer based on the rates of dividend are given below in pair. to declare dividend. 3.2000 (iii) A provision of Rs.000 is to be made for income tax (iv) a provision of Rs.25000 & Credit Bank by Rs.500 AND Debit Profit & Loss Account by 49.(a) Discount on issue of shares – Profit and Loss Account (b) Bill discounted – contingent liabilities (c) Interest accrued and due on debentures – Secured Loans (d) Mortgage Loan – Secured Loans 5. One of the entries passed is wrong entry. Miscellaneous Expenditure (b) Fixed Assets.000 8.

borne by continuing partners (d) Reserve & surplus . Select this pair from the following (a) Management of business . If the partners capital accounts are fixed. where will you record (either debit side or credit side of which account ) the following transactions (i) Salary payable to partner (ii) Fresh capital introduced by a partner (iii) Drawing made by a partner (iv) Share of profit earned by a partner. Identify that account from the following. One of the statements in respect of Profit & Loss Adjustment account is incorrect.voluntary action (b) Gain .business may be run by one or some or all partner (b) Treatment of losses . Profit & Loss Account(Dr.gain ratio (b) Reserves & surplus . The two portion of each pair relating to admission of a partner has got some relationship.No interest as partners are owners (d) Goodwill .retiring partner (c) Share of goodwill . (a) Debit side of partner‟s current account (b) Credit side of partner‟s capital account (c) Debit side of partner‟s current account (d) Credit side of partner‟s current account . However one of the pairs is mismatch and has no relationship. balance). Mark the incorrect sentence. Select this pair from the following (a) Retirement .new partner (d) Revaluation of assets & liabilities .Profit & Loss adjustment account 12. Miscellaneous Expenditure 9.insolvency of a partner (c) Loan from partners . Select this pair from the following (a) Admission of a partner .super profit method 11. However one of the pair is mismatch and has no relationship.Account(Dr.belong to all partners 13. However one of the pairs is a mismatch and has no relationship. balance) (d) Fixed Assets. (a) The account is credited with closing balance of profit and loss account of last year (b) The account is credited with current year‟s net profit (c) The account is debited with provision for taxes (d) The account is debited with provision for dividend 10. Current Assets & Loan Advances. rest are correct.Old partners (c) Goodwill . The two portion of each pair relating to retirement of a partner has got some relationship. The effect to one of the journal entries is wrongly given. The two portion of each pair relating to partnership accounts has got some relationship.

50.52. 3000.25.4. 50. When a new partner gives cash for goodwill.14. One of them is correct. the amount is debited to----- . (a) Rs. He is entitled for interest at 6% in the absence of partnership agreement.L must pay Rs. What is the new profit sharing ratio (a) 14: 6 : 15 (b) 7: 3: 3 (c) 2: 2: 3 (d) None of the above 17. The answer to each point is given at (a) to (d). They admit Q into partnership as a partner from 1st April 2006 on 3/7th share in the profit.10. the amount is credited to----(a) Goodwill account (b) Capital account of new partner (c) Cash account (d) None of the above 19. (i) L used Rs. The rate of normal return being 10%.000 and liabilities to Rs. If the goodwill account is raised for Rs. Identify the wrong solution. he wants interest at 6% ( there is no partnership deed) (a) K is right .000 to the firm (b) P is right .000 as its normal profits.24. P does not agree (iv) L has given loan of Rs. Find out the value of goodwill. K wants the amount to be given to the firm (ii) P used Rs. Firm should bear profit as well as losses.000 (b) Rs.000 (d) Nil 18.000 (c) Rs.000. The assets of the firm amount to Rs. (d) L is right.29.000 to the firm. One of the solutions is incorrect.000.000.10. identify that statement. The following differences as listed at (i) to (iv) have arisen due to misunderstanding.72. (c) P is right.00.K and P are partners.000 belonging to the firm and made a profit of Rs. A firm earns Rs.1.28. No new partner can be admitted without the consent of all. O and P are two partners sharing profits in the ratio of 7:3. L. (a) Partnership arises from reputation (b) A partnership is formed only for a legal business (c) The liability of partners is limited (d) The business of the firm is conducted by two partners 16. 15. He wants the firm to bear the loss (iii) L & K wishes to appoint S as new partner.000 belonging to the firm and suffered a loss of Rs. Below are some statements about partnership.

the new profit sharing ratio shall be----(a) 3:1 (b) 7:3 (c) 3:2 (d) None of the above 23. A. it should be credited to the capital accounts of----(a) The old partners in their new profit-sharing ratio (b) All partners in their new profit sharing ratio (c) The old partners in their old profit sharing ratio (d) None of the above 22. B and C share profits as 3:2:1. B and C are three partner sharing profits in the ratio of 3:1:1. A and B sharing profits and losses in the ratio of 2:1. If the adjustment in the values of assets at the time of the admission of a partner shows a profit. On the retirement of the partner. A. C is admitted as partner giving him ¼ share. Calculate the gain ratio of A and B (a) 3:2 (b) 1:1 (c) 2:1 .(a) The capital accounts of partners (b) Goodwill account (c) Cash account (d) None of the above 20. C retires and his share is purchased by B. C retires. the profits on revaluation of assets should be credited to the accounts of----(a) All the partners in their profit sharing ratio (b) The remaining partners in their new profit sharing ratio (c) The remaining partners in their old profit sharing ratio (d) None of the above 24. The new profit sharing ratio will be----(a) 2:1:1 (b) 4: 4:3 (c) 3: 3: 2 (d) None of the above 21.

6 30.4 (d) Rs. If Rs. the „Share Capital Account‟ will be debited by----(a) Rs.10 share has been issued at a premium of Rs. (a) Premium of shares (b) Profit on re-issue of forfeited shares (c) General Reserve (d) None of the above 29. Choose the incorrect statement in case of dissolution of partnership from the following statements (a) On the dissolution of the firm . 4. 26. A new company cannot issue shares----(a) at par (b) at discount (c) at premium (d) none of the above 28. no account will show any balance. first creditors like wages outstanding etc. Money received in advance from shareholder before it is actually called up by the company is ----(a) Debited to Calls in arrears Account (b) Debited to Calls in Advance Account . A company wishes to pay dividend on shares.5. will have to be paid (b) Goodwill will be raised in the books when a firm is dissolved (c) The loan from the spouse of a partner is treated just like a loan from outside parties (d) After the books are closed.10 (c) Rs.15 (b) Rs. State which of the following may be used for the purpose. 27. has been forfeited for non payment of Rs. on which entire amount has been called up. (c) The shareholders are not liable for the acts of the company (d) The premium received on shares may be distributed among shareholders.(d) None of the above 25. Choose the incorrect statement from the following statement which are pertaining to company accounts (a) The company is an artificial person (b) A member of a company may bind the company by its actions.

7( including premium) paid is forfeited. the capital account should be debited by----(a) Rs. The difference between surrender value and premium paid is written off to Profit and Loss account (c) Joint Life Policy and Joint Life reserve Account are adjusted to bring them down to surrender value of policy. (d) None of the above.9 ( including premium) have been called and Rs. If a share of Rs.8 (b) Rs. .7 32.1 on which Rs. (a) Premium amount is debited to P & L account every year and when claim becomes due then to be shared by all partners (b) Every year amount debited to Joint Life Policy Account and balance is shown on asset side at surrender value .9 (d) Rs. The new profit sharing ratio among A. Dividend are usually paid on (a) Called up capital (b) Paid up capital (c) Authorised capital (d) None of the above 33. Preliminary Expenses is----(a) Fictitious Asset (b) Current liability (c) Current asset (d) None of the above 34.(c) Credited to Calls in Advance Account (d) Credited to Share Capital Account 31. A and B are partners sharing profits in the ratio of 3:2. Find out the sacrificing ratio (a) 7:3 (b) 4:3 (c) 1:1 (d) None of the above 35. B and C is 4:3:2.10 issued at a premium of Rs.10 (c) Rs. Choose the correct treatment for premium paid on „Joint Life Policy‟ when premium paid is treated as an expense. C is admitted as a partner.