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)

( 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:. is known as a) Trade cycle b) Cash cycle c) Operating cycle d) Revolving cycle Ans:.(d) 9) Charge created on LIC Policy is: a) Hypothecation b) Pledge c) Assignment d) Mortgage Ans:. against hypothecation of inventory.(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:. a partnership firm.( c ) 10) Your bank grants a working capital finance to ABC & Co.(d) 13) Bank‟s Assets are classified in to standard assets. semi finished goods. finished goods and into cash .Committee a) Rangarajan b) Narasimham c) Ghosh d) Tandon Ans:.( c ) .the due date is: a) 12/08/05 b) 14/09/05 c) 12/11/05 d) None Ans:.8) A cheque is dated 12/05/05. based on the recommendations of -------------------.(b) 14) The time taken to convert cash into raw materials. substandard assets doubtful assets and loss assets. 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:.

( c ) 20) In a securitisation deal. 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.(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:. shares is called a) A bank b) An insurance company c) Bancassurance d) Mutual Fund 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:.(d) . bonds.Atmaram as director of the Ltd company.Atmaram as director of a Ltd company expired. 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:.15) A company which pools money from investors and invests in stocks. 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:.(a) 18) Mr. Bank received a cheque signed by Mr. They want to open a joint account in your bank.(b) 19) Tele banking service is based on a) Virtual Banking b) Online Banking c) Voice processing d) Core Banking Ans:.( c ) 17) John & James are friends aged 14 & 15 respectively.

advances a) Direct Agriculture b) Indirect Agriculture c) Self Employment Scheme d) Allied to indirect Agriculture Ans:.( c ) 28) As per FIMMDA‟s guidelines. except one : .( 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:.(b) 29) Interest is calculated on actual/365 days basis in respect of the following products.(a) 24) Cash Budget is a statement of a) b) c) d) Cash-Non cash funds Cash receipt and Cash payments Another name for cash flow None Ans:.(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:.22)The minimum percentage of Priority Sector advances to be maintained by foreign banks in India a ) 40% b) 18% c) 32% d) 60% Ans:.( c ) 23) Loan for fish rearing is covered under Prirority Sector as ----------.(d) 26) The apex institution which handles refinance for agriculture and rural development is called: a) RBI b) SIDBI c) NABARD d) SEBI Ans:. the Mid-Office is responsible for: a) Dealing activities b) Risk Management c) Reconciliation d) Confirmation of deals Ans:.

00.000.(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:.(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:.205.( c ) .(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:. The relationship between your bank and XYZ Ltd is: a) Debtor/Creditor b) Creditor/Debtor c) Bailor/Bailee d) Bailee/Bailor Ans:.00 The CC account shows a credit balance of Rs.1.(d) 33) Your bank‟s customer XYZ Ltd.a) Call Money b) Notice Money c) Term Money d) GOI dated securities Ans:. enjoys a CC limit of Rs.(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:.00.(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:.(d) 31) The regulator for Mutual Funds in India is: a) FIMMDA b) AMFI c) RBI d) SEBI Ans:.10.

State Government 35%.Sponsoring Bank 15% Ans:.(d) 43) FIMMDA‟s guidelines cover the following products. the share holding pattern is: a) Central Government 50%.37) In respect of Regional Rural Banks.(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:.(b) 44) Except one of the following others are part of Public Sector Banks: .(b) 41) The Capital Adequacy Ratio is : a) 6% b) 8% c) 9% d) 10% Ans:.Sponsoring Bank 50% b) Central Government 35%.Sponsoring Bank 35% b) Central Government 15%.State Government 15%. it should: a) Obtain special license from AMFI b) Obtain special license from FIMMDA c) Both a and b d) Register with SEBI Ans:. except one: a) Call Money b) Cross Currency Interest Rate swaps c) Commercial Paper d) Certificate of Deposit Ans:.State Government 50%. wants to undertake capital market activities.( 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:.State Government 35%.(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:.Sponsoring Bank 15% b) Central Government 50%.(d) 39) A bank in India.

Mr. the cost of the goods sold is 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 4.30000.The effect of the transaction is that. 1100 (c) Rs.000. what is the amount of claim to outsiders? (a) Rs.50000. the capital of the firm----(a) increases by Rs. Nil (b) Rs.00.Ghatge commenced his business on 1st April. 20000 (d) reduces by Rs.a) State Bank of Hyderabad b) Central Bank of India c) Regional Rural Bank.1. (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 2.300. investments Rs.40000 (c) increases by Rs.50000 (b) reduces by Rs.300. the capital will increase (b) If assets increase and liabilities also increase by same sum . Nil. He did good .500 (d) Rs. current liabilities Rs. 2006 with Capital of Rs. current assets Rs. fixed assets are Rs. The firm sells goods on credit for Rs.II:1.(d) 45) A banker is expected to honour the cheques within the specified banking hours as per Section of NI Act. If the net worth of the business is Rs.1881 a) 22 b) 25 c) 31 d) 65 Ans:.600 3. Select from the following a sentence which is wrong (a) If assets increase and liabilities do not . sponsored by a nationalized bank d) HDFC Bank Ans:. a statement which speaks about liabilities of an entity. Select from the following . 20000 5.(d) AIIB Sample Papers 2012. 500.500.

108000 per annum before charging remuneration of Rs.business during the year and earned handsome profit. 17000. The rate of return expected on capital employed of a firm is 10%. his financial position was: Fixed Assets Rs.70000 (c) Rs. Commission to Partners Account 10.000. balance) – Application of funds (c) Net worth less reserves & surplus . From the account given below. 2007. 20. 18000 to partner . 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 following . Select the wrong pair. (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. select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a. Partners Salary Account c.33000 and Creditors Rs. The average net profits expected are Rs.108.53000 (d) None of the above 6. 36000 (b) Rs.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. a. What was his net profit for the year 05-06? (a) Rs. The capital employed in the business is Rs.Nominal account (b) Profit and Loss Account (Dr. Interest on Loan Account d.6. At the end of 31st March.1.Capital (d) Balance sheet . What is the value of goodwill on the basis of two years purchase of super profits.00. One of the pairs given below is wrong.000 and bank balance of Rs.Financial position 7.000 . Drawings Account b. (a) Outstanding expenses . Rs.

observations. None of the above 11. Accountant has interpreted the Revaluation Account as follows.000 and C‟s Capital A/c. The book value of the stock was 41. Q feels that one of the entry is wrong.1. (b) For decrease in the value of liabilities. Rs.Rs.000 c.15000.3.1. Rs.60. occurrences are called ----(a) data (b) record (c) file (d) system 15. Rs. 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. after admission of C would be ----(a) 15:15:10 (b) 20:10:10 (c) 3:1:1 (d) None of the above 12.78. 60000 & R‟s Capital by Rs. They take S into partnership.Debit Liabilities Account and Credit Revaluation Account.52000 and Creditors A/c Rs. One of the journal entries is wrong. the new profit sharing ratio .b. they admitted C as a partner with 25% share in the profits of the firm.000 d. Select the wrong entry from the following. Rs.00. Rs. when Mr. choose the entry which is wrong.000 (d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs.00.000 (c) Debit Goodwill for Rs. In the books of ABC Enterprises. Any facts. A and B are two partners in a firm sharing profits and losses as 2:1. Accountant has passed following entries. (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 partnership firm. 8000 were shown while at debit side of Revaluation Account Reserve for Doubtful Debts A/c.000 as his share of goodwill which will be retained in business and also bring Rs. A‟s Capital A/c. It was agreed that S will pay Rs. Stock A/c Rs. Q and Mr.9.000 and credit Q‟s Capital by Rs.25000.000 but was to be revalued at Rs. C.000 as capital for one fourth share in the future profits.000 (b) Debit cash and credit S‟s Capital for Rs.000 13.20000 were shown. B‟s Capital A/c.1. a partner decided to resign from the firm. Mr. (a) Debit cash and credit Goodwill for Rs.20000. One . Premises A/c Rs. (a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.20.00. but Mr. R were partners of a firm sharing profit and losses in the ratio of 3:2. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner.3. 40.00. Hence .50.00.000.

One of the entries is wrong. Select the incorrect statement in respect of companies. Select the incorrect sentence (a) Whenever. 25000 (b) Creditors are revised upwardly by Rs. 17. there is no profit or inadequate profit.000 is made for doubtful debts 16. 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. (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 . (a) Stock is revalued upwardly by Rs. 20.8000 (c) Premises are revised upwardly by Rs. partners share profit and loss in proportion to the capital contributed by the partners. (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) .52000 (d) A provision on debtors of Rs. issued capital.of the interpretations by him is incorrect. Select the incorrect sentence. Following are the journal during the process of application to allotment stage . 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 . arrears of preference dividend are cleared first (d) The Act prohibits the issue of any preference shares which are irredeemable 19. 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. Select the wrong entry.it affects the existence of the organisation (d) Shareholders are not liable for the acts of the company 18. subscribed capital. 15. 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 .

Y at Rs.200 (c) Credit share premium Account by Rs. issued shares of Rs. 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. (a) Credit Forfeited shares Account by 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 . Select the incorrect statement in respect of calls in advance (a) The company may accept from shareholders . One of the shareholders. DT Ltd.9.2 and on final call Rs.200 (b) Credit Share allotment Account by Rs. on first call Rs. (a) Debit bank account by Rs.4. four accounts were affected.2. on allotment Rs. Mr. the said shares were forfeited. applied for 100 shares but fail to pay allotment and first call money.200 25. Select the account which was wrongly credited. the uncalled amount on shares even before it is fallen due (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.(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) 21.900 (b) Debit forfeited shares by Rs.400 24. 5 per share. One of the accounts is given wrong effect.10 each at 10 % premium. The shares were forfeited and re-issued to Mr.500 (c) Credit share capital by Rs.1000 (d) Credit forfeited shares by Rs.100 (d) Credit Share first call Account by Rs. At this stage. payable on application Rs. The debit and credit effect of these four accounts is given below. He failed to pay call money of Rs. X was issued 100 shares of Rs. When the entry recording the re-issue of shares was passed in all.3 (including premium).10 each. Select that account from the following.

15 Lakh (c) Share Premium Account (Rs.100 each fully paid up)Share premium Rs. (a) Share Premium Account (Rs. 3 Lakh. Nil Lakh). Nil Lakh). (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. 2 Lakh (d) Share Premium Account (Rs. In case any sum has been written off on a reduction of capital or revaluation of assets.5 Lakh.It was decided to use minimum free reserve for issue of 1:1 bonus shares. 15 Lakh .25 Lakh ( 25. 3 Lakh). issued capital. Capital Reserve 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. The liability side of the balance sheet of ABC International Ltd. General Reserve Rs. The accounts and the amount with which the account is debited are given below in sets. (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. Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side). Capital Reserve Account ( Rs.5 Lakh).5 Lakh). Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet. General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. Capital Reserve Account ( Rs.000 shares of Rs.. 15 Lakh and Profit & Loss account Rs.(d) Capital redemption reserve 26. (a) Under share capital. Select the incorrect statement in respect of form of balance sheet of companies ( Asset side). Select the same.e. 1 Lakh). 1 Lakh). 29. subscribed capital (b) The called up amount per share is indicated and in the amount column total amount i. Capital Reserve Account ( Rs. Capital Reserve Account ( Rs. 15 Lakh 27. General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 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 . General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh (b) Share Premium Account (Rs. One of the set is correct. General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. is showing following position: Paid up share capital Rs. the following order is maintained: Authorised capital.5 Lakh).

15% c.debentures or bonds (c) Immovable properties (d) Interest accrued on investments 32.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. 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. None of the above 35. 10% d. 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 scheduled banks are required by RBI to transfer at least -----. One of the accounts is wrongly grouped under the head “Investments” while preparing the balance sheet of the company. 1956.(b) 2 years thereafter (c) 3 years thereafter (d) 5 year thereafter 31. (a) Investments in government or trust securities (b) Investments in shares . 1949 . One of the accounts is wrongly debited to “Profit and Loss Appropriation A/c” of a company. Name the wrong account debited (a) Interim dividend (b) Proposed dividend (c) Provision for tax (d) Capital redemption reserve 33. Single out the wrong account. 20% b.

matured term deposit to be shown under----(a) demand deposits (b) saving bank deposits (c) term deposits (d) other liabilities and provisions 41. Fixed Assets and other Assets are part of Schedule Nos.--respectively a. The financial statement of bank consists of ------. Advances given to a staff by a bank as a employer should be included in----(a) other assets .11 d. 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. Advances.7. One of the items is a misfit in a group namely „other income‟ of a banking company. Investments. 9.10. 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 40.11.9. 8.8.12 38.8.9 b.schedules (a) 18 Schedules (b) 16 Schedules (c) 17 Schedules (d) Schedules 37.(d) Form A gives format of a balance sheet and form “B” gives the format of a profit and loss account 36. 7. 6.9.10. In banking company.10 c.

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) depreciation on motor cars (b) depreciation on stationary and stamps (c) depreciation on furniture (d) depreciation on non-banking assets 43. The provisional requirement for standard asset is----(a) 0. Identify the security which is SLR security (a) Securities issued by local authorities (b) Shares (c) Bonds (d) subsidiaries 47. The list given below consists of various securities. The investment under “held to maturity” should not exceed -----of bank‟s total investment. One of the expenses is wrongly included. Identify that item of expense. Some of the items included under this category are listed below.Depreciation on bank‟s property is part of “Operating Expenses”.40%(revised) of total outstanding (b) 10%(revised) of total outstanding (c) 40%(revised) of total outstanding (d) 100%(revised) of total outstanding 45. endorsements and guarantees are shown as----(a) other assets . Acceptances. (a) 25% (b) 75% (c) 5% (d) None of the above 46.(b) advances (c) investments (d) none of the above 42. 87.

49.Inter office/branch adjustments(net) .Schedule 5 50. (a) Banking company – trustees and executors (b) Form B . Choose the wrong pair from the following.Refinance from NABARD (d) Other Liabilities & Provisions . 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.(b) contingent liabilities (c) advances (d) other liabilities and provisions 48. The list given below provides the close relationship between the items of each pair.Share premium (b) Time deposits . Identify this pair.Matured time deposits (c) Borrowings in India . The information given in the pair is pertaining to banking companies (a) Reserves & surplus . One of the pairs has no such close relationship.Profit and Loss Account (c) Ledger book .Letter of credit register (d) Other liabilities and provisions .

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