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JAIIB AFM Unit 10 — Back Office Functions and Handling Unreconciled Entries in Banks: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 3 of the November 2026 cycle (28 November 2026)

This page is a free slice of our JAIIB AFM question bank for Unit 10 — Back Office Functions and Handling Unreconciled Entries in Banks (Module A — Basic Accounting and Finance). The Mock Centre holds 46 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

AFM · Module A46 MCQs in the Mock Centre5 free belowPaper on 28 November 2026

Key facts examiners test from this unit

  1. Back office = non-client-facing support; post-computerisation it can sit anywhere cheaper than the branch.
  2. Five reconciliation groups: intermediaries, correspondent banks (Nostro = "our account with you"), RBI/other banks, intra-branch (Suspense/Sundry), inter-branch.
  3. Computerisation solved book-balancing but NOT the Suspense & Sundry deposit problem.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
The 'back office' of a bank means:
Why (b): Back office = the NON-client-facing administration and support personnel — out of the limelight, but major contributors.
Question 2 of 5
Which of these is a back-office 'Loans' function?
Why (b): The Loans group: EMI calculation, interest/penal-interest posting, processing fees, default management and collections — end-to-end servicing support.
Question 3 of 5
RBI/Nostro reconciliation statements are prepared using which control concept?
Why (a): MAKER-CHECKER: one prepares the reconciliation statement, another verifies — the standard control (Unit 9's principle applied).
Question 4 of 5
When a branch has NO inter-office transaction for the day, it sends the CRD:
Why (b): The branch still sends a NIL STATEMENT — completeness of daily statements is what makes CRD matching total.
Question 5 of 5
Computerisation has allowed bank back offices to be:
Why (a): Computerisation removed the need for the back office to be part of the branch — it can sit anywhere cheaper (rent/labour), while the front office focuses on customers.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Suspense AccountSundry Deposits AccountDebit entries, Other Assets, fraud-prone vs credit entries, liability side
Originating entryResponding entryWhere the transaction starts vs the other branch's reversal
Practise all 46 questions on Unit 10. The free demo opens a slice of every subject with the same explanations; the AFM Online-only pass unlocks all 1,681 AFM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
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← Unit 9: Operational Aspects of Accounting Entries · Unit 11: Bank Audit and Inspection → · All AFM units · JAIIB 2026 guide

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Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.