JAIIB · Accounting & Financial Management · Module A — Basic Accounting and Finance
JAIIB AFM Unit 5 — Bank Reconciliation Statement: 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 5 — Bank Reconciliation Statement (Module A — Basic Accounting and Finance). The Mock Centre holds 54 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 A54 MCQs in the Mock Centre5 free belowPaper on 28 November 2026
Key facts examiners test from this unit
Bank column follows the PERSONAL-account rule (debit the receiver) — deposit = debit, withdrawal/cheque issued = credit.
Pass book = copy of the customer's account in the bank's books; depositor = the bank's creditor.
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
In a BRS, with A = the adjusted (corrected) cash-book balance and B = the adjusted bank-statement balance, the two are reconciled when:
Why (b): Reconciled when B = A: the adjusted (corrected) cash book balance equals the adjusted bank-statement balance.
Question 2 of 5
In the customer's account maintained by the bank:
Why (a): The bank credits interest earned on a credit (savings) balance and debits interest charged on an overdrawn balance.
Question 3 of 5
A firm treats the balance in its bank operating account like cash available with the firm because:
Why (a): Since payments/receipts by cheque are preferred, every firm opens an operating account; its balance is withdrawable at any time, so it is treated like cash — hence the bank column sits right inside the cash book.
Question 4 of 5
A trader's cash book shows a CREDIT balance in the bank column. This means:
Why (b): A credit balance in the cash book's bank column means withdrawals exceed deposits — an overdraft, mirrored as a DEBIT balance in the pass book.
Question 5 of 5
A cheque deposited by the trader is dishonoured. The bank's action in the trader's account is to:
Why (b): On dishonour the bank DEBITS the customer's account (often with return charges), cancelling the credit given on deposit — the trader must then credit the cash book.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
Cash column rule
Bank column rule
Real a/c (debit what comes in) vs personal a/c (debit the receiver)
CB debit balance
PB debit balance
Favourable (money in bank) vs OVERDRAFT
Practise all 54 questions on Unit 5. 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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