Home › JAIIB › AFM › Unit 4

JAIIB · Accounting & Financial Management · Module A — Basic Accounting and Finance

JAIIB AFM Unit 4 — Maintenance of Cash: 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 4 — Maintenance of Cash (Module A — Basic Accounting and Finance). The Mock Centre holds 63 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 A63 MCQs in the Mock Centre5 free belowPaper on 28 November 2026

Key facts examiners test from this unit

  1. Golden rules: Personal — debit the receiver, credit the giver; Real — debit what comes in, credit what goes out; Nominal — debit expenses/losses, credit incomes/gains.
  2. Journal = book of prime/original entry (journalising); Ledger = principal book, second entry (posting); 'To' on debit side, 'By' on credit side.
  3. Bank = artificial PERSONAL account; goodwill/trademarks/patents = intangible REAL accounts.

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
Accounts are broadly classified into Personal and:
Why (b): Two broad classes: PERSONAL and IMPERSONAL — impersonal splitting into REAL (property) and NOMINAL (expenses/incomes).
Question 2 of 5
The golden rule for Real Accounts is:
Why (b): The golden rule for REAL accounts is DEBIT WHAT COMES IN, CREDIT WHAT GOES OUT — the things-accounts rule of the trio.
Question 3 of 5
The petty cash book is used to record:
Why (b): The petty cash book records SMALL daily payments (conveyance, cartage, postage), keeping the main cash book from becoming bulky; kept by the petty cashier.
Question 4 of 5
The ledger is called the __ book of accounts, and its main function is to ____:
Why (a): Ledger = the principal book of accounts; its main function is to classify items into the appropriate real/nominal/personal accounts.
Question 5 of 5
The two types of petty cash book are:
Why (a): Petty cash book types: (1) Simple, (2) Columnar/Analytical — the latter with a separate column for each expense head (postage, cartage, stationery…).
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
JournalLedgerFirst/chronological/more reliable vs second/analytical/less reliable
JournalisingPostingRecording in the journal vs transferring to the ledger
Practise all 63 questions on Unit 4. 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.
Take the free test Open the free demo

← Unit 3: Depreciation and Its Accounting · Unit 5: Bank Reconciliation Statement → · All AFM units · JAIIB 2026 guide

Related reading

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.