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

JAIIB AFM Unit 6 — Trial Balance and Rectification of Errors: 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 6 — Trial Balance and Rectification of Errors (Module A — Basic Accounting and Finance). The Mock Centre holds 60 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 A60 MCQs in the Mock Centre5 free belowPaper on 28 November 2026

Key facts examiners test from this unit

  1. TB checks arithmetical accuracy only — it neither shows profit/loss nor guarantees error-free books.
  2. Assets & expenses = debit balances; liabilities, capital & income = credit balances — always.
  3. COPS errors never disturb the TB: Complete omission, cOmpensating, Principle (+ all two-sided errors).

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 main purpose of preparing a Trial Balance is to:
Why (b): Main purpose: verify ARITHMETICAL ACCURACY — under double entry, total debit balances must equal total credit balances.
Question 2 of 5
While reviewing a trial balance, you notice 'Furniture A/c' appearing in the CREDIT column. This signals:
Why (a): Assets and expenses ALWAYS show debit balances; liabilities, capital and income always show credit balances. An asset in the credit column = a red flag for a posting/extraction error.
Question 3 of 5
The Suspense Account is opened when:
Why (a): When the TB refuses to tally, the difference is placed in Suspense so statements can be prepared; each one-sided rectification then chips away at it until it closes to zero.
Question 4 of 5
Which year-end entry sequence does the 'ACE' order describe?
Why (b): ACE fixes the order of year-end work: ADJUSTING entries first (accruals/prepaids), then CLOSING entries (nominal accounts to P&L), then the statements flow out.
Question 5 of 5
A DEBIT balance left in the Suspense Account at year-end is shown:
Why (a): An unresolved suspense debit is carried on the ASSET side (credit balance on the liability side) until the underlying errors are found — parking, not permanence.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Complete omissionPartial omissionNo book at all (TB tallies) vs one ledger leg missing (TB disagrees)
Error of commissionError of principleMechanical slip, TB affected vs wrong classification, TB unaffected
Practise all 60 questions on Unit 6. 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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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.