AIIB Sample Papers 2012 JAIIB 1.

(a) (b) (c) (d) Select from The The The the

with Answers, Solutions, JAIIB Question Papers, Sample Papers of JAIIB. Papers , a statement which of claims of of of speaks claims the claims about of owners of the 2012liabilities of the and the an II:entity. owners outsiders outsiders above

Sample following liabilities liabilities liabilities None consist

consist of consist

2. If the net worth of the business is Rs.500, fixed assets are Rs. 500, current assets Rs.300, investments Rs.300, current liabilities Rs. Nil, what is the amount of claim to outsiders? (a) (b) (c) (d) Rs. Rs. Nil 1100 Rs.500 Rs.600

3. (a) If

Select assets

from increase

the and

following liabilities

a do not

sentence , the

which capital

is will

wrong increase

(b) If assets increase and liabilities also increase by same sum , 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. The firm sells goods on credit for Rs.50000, the cost of the goods sold is Rs.30000.The effect of the transaction is that, the capital of the firm----(a) (b) (c) (d) increases reduces increases reduces by by by by Rs. Rs. Rs.50000 Rs.40000 20000 20000

5. Mr.Ghatge commenced his business on 1st April, 2006 with Capital of Rs.1,00,000. He did good business during the year and earned handsome profit. At the end of 31st March, 2007, his financial position was: Fixed Assets Rs.1, 20,000 and bank balance of Rs.33000 and Creditors Rs. 17000. What was his net profit for the year 05-06? (a) (b) (c) (d) None of the Rs. 36000 Rs.70000 Rs.53000 above

6. (a) (b) (c) (d)

One

of

the

pairs

given

below

is

wrong. -

Select

the

wrong

pair. account

Outstanding Profit Net and Loss worth Balance

expenses Account less sheet (Dr. reserves -

Nominal Application surplus Financial of

balance) &

funds Capital position

7. (a) (b) (c) (d)

Choose The The The The

the unregistered

sentence association association association association of of of

which of 50 20 10 10

speak persons persons to to to do do

about to do do non

illegal banking banking other other than than

association business business banking banking

unregistered unregistered unregistered

persons persons

business business

8.

From

the

following

,find

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 partners current account (b) Drawings made by partners are never entered in the Profit and Loss Appropriation Account.

(c) In the Fluctuating Capital Account Method the balance in the capital a ccount 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. From the account given below, select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side a. b. c. d. Interest Commission Partners on to Drawings Salary Loan Partners Account Account Account Account

10. The average net profits expected are Rs.108000 per annum before charging remuneration of Rs. 18000 to partner . The capital employed in the business is Rs.6,00,000. The rate of return expected on capital employed of a firm is 10%. What is the value of goodwill on the basis of two years purchase of super profits. a. b. c. d. None of the Rs.108,000 Rs.60,000 Rs.78,000 above

11. A and B are two partners in a firm sharing profits and losses as 2:1. they admitted C as a partner with 25% share in the profits of the firm. Hence , the new profit sharing ratio , after admission of C would be ----(a) (b) (c) (d) None of the 15:15:10 20:10:10 3:1:1 above

12. Mr. Q and Mr. R were partners of a firm sharing profit and losses in the ratio of 3:2. They take S into partnership. It was agreed that S will pay Rs.1,00,000 as his share of goodwill which will be retained in business and also bring Rs.3,00,000 as capital for one fourth share in the future profits. The book value of the stock was 41,000 but was to be revalued at Rs.50,000, Accountant has passed following entries, but Mr. Q feels that one of the entry is wrong. Select the wrong entry from the following. (a) (b) Debit Debit cash cash and and credit credit Ss Goodwill Capital for for Rs.1,00,000 Rs.3,00,000

(c) Debit Goodwill for Rs.1,00,000 and credit Qs Capital by Rs. 60000 & R s Capital by Rs. 40,000 (d) Debit Stock and credit Profit & Loss Adjustment A/c by Rs.9,000

13. Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. One of the journal entries is wrong, choose the entry which is wrong. (a) For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.

(b) For decrease in the value of liabilities- Debit Liabilities Account and Credit Revaluation Account. (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) (b) (c) (d)

Any

facts,

observations,

occurrences

are

called

----data record file system

15. In the books of ABC Enterprises, a partnership firm, when Mr. C, a partner decided to resign from the firm, 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, Stock A/c Rs.25000, Premises A/c Rs.52000 and Creditors A/c Rs. 8000 were shown while at debit side of Revaluation Account Reserve for Do ubtful Debts A/c. Rs.15000, As Capital A/c.Rs.20000, Bs Capital A/c. Rs.20,000 and Cs Capital A/c. Rs.20000 were shown. Accountant has interpreted the Revaluation Account as follows. One of the interpretations by him is incorrect. Select the incorrect sentence. (a) (b) Stock Creditors is are revalued revised upwardly upwardly by by Rs. 25000 Rs.8000

(c) (d) A

Premises provision on

are debtors of

revised Rs. 15,000

upwardly is made

by for doubtful

Rs.52000 debts

16. (a) (b) (c)

Select Interest Joint Goodwill on

the drawing Venture is

True is is a an

statement income a tangible to

from the

the partnership partnership of the

following firm firm firm

permanent asset

(d) In the absence of partnership agreement , partners share profit and loss in proportion to the capital contributed by the partners.

17. (a) (b) A

Select member It is

the of a

incorrect company to

statement can enter register

in into a

respect contract joint

of with stock a

companies. company company

compulsory

(c) If all but one member of a private company becomes insolvent ,it affects the existence of the organisation (d) Shareholders are not liable for the acts of the company

18. (a) Whenever,

Select there is no profit or

the inadequate profit,

incorrect dividend cannot be

sentence declared

(b) The right to claim dividend lapses when there is no profit in case of cumulative preference shares (c) (d) When The the Act company prohibits makes the profit issue of , arrears any of preference shares dividend which are are cleared first

preference

irredeemable

19. (a) (b) Authorized Issued

Select capital capital is the is

the capital equal with which to

incorrect the its company is

statement registered capital

authorized

(c) Authorized capital, issued capital, subscribed capital, 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.

20. Following are the journal during the process of application to allotment stage . One of the entries is wrong. Select the wrong entry. (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) (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.

Select

the

incorrect

statement

in

respect

of

calls

in

advance

(a) The company may accept from shareholders , the uncalled amount on shares even before it is fallen due (b) (c) (d) The article on amount of calls of association in calls must permit can be is such paid part acceptance but of the the of advance is call upto money 6% capital

Interest The

advance in

maximum paid up

advance

share

22. (a) (b) (c) (d)

Select it it it it

the is

incorrect used for is

statement for the of for for

in

respect purpose

of of

utilization buy of

of back

share of of

premium shares profits expenses shares

used

payment used used

dividend

in

case off fully

inadequacy preliminary paid bonus

writing issue of

is

23. Mr. X was issued 100 shares of Rs.10 each. He failed to pay call money of Rs. 5 per share. The shares were forfeited and re-issued to Mr. Y at Rs.9. When the entry recording the re-issue of shares was passed in all, four accounts were affected. The debit and credit effect of these four accounts is given below. One of the accounts is given wrong effect. Select that account from the following. (a) (b) (c) (d) Debit Debit Credit Credit bank forfeited share forfeited account shares capital shares by by by by Rs.900 Rs.500 Rs.1000 Rs.400

24. DT Ltd. issued shares of Rs.10 each at 10 % premium, payable on application Rs.2, on allotment Rs.3 (including premium), on first call Rs.2 and on final call Rs.4. One of the shareholders, applied for 100 shares but fail to pay allotment and first call money. At this stage, the said shares were forfeited. Select the account which was wrongly credited. (a) (b) (c) (d) Credit Credit Credit Credit Forfeited Share share Share first shares allotment premium call Account Account Account Account by by by by Rs.200 Rs.200 Rs.100 Rs.200

25. (a) (b) (c)

Select

the

source

which

is

not Share

valid

for

issue

of

bonus

shares premium

Revaluation

reserve

created Capital

by

revaluation

of

fixed

assets reserve

(d)

Capital

redemption

reserve

26. The liability side of the balance sheet of ABC International Ltd. is showing following position: Paid up share capital Rs.25 Lakh ( 25,000 shares of Rs.100 each fully paid up)Share premium Rs.5 Lakh, Capital Reserve Rs. 3 Lakh, General Reserve Rs. 15 Lakh and Profit & Loss account Rs. 15 Lakh .It was decided to use minimum free reserve for issue of 1:1 bonus shares.. The accounts and the amount with which the account is debited are given below in sets. One of the set is correct. Select the same. (a) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh (b) Share Premium Account (Rs. Nil Lakh), Capital Reserve Account ( Rs. Nil Lakh), General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 15 Lakh (c) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 3 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 2 Lakh (d) Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. 15 Lakh

27. Select the incorrect statement in case of Share Capital and Reserves and Surplus as shown in the balance sheet. (a) Under share capital, the following order is maintained: Authorised capital, issued capital, subscribed capital (b) The called up amount per share is indicated and in the amount column total amount i.e. number of shares multiplied by amount called up per share is shown (c) (d) The The amount amount of of forfeited unpaid shares calls account is is deducted shown under from Reserves (b) & above surplus

28. Select the incorrect statement in respect of form of balance sheet of companies(Liabilities side). (a) (b) (c) (d) Loans sinking and fund Advances Dividend from is dividend is banks shown are grouped under under under the grouped the head under unsecured head Secured current loans Loans liabilities provisions.

Unclaimed Proposed

grouped is

29. Select the incorrect statement in respect of form of balance sheet of companies ( Asset side). (a) (b) Live Balance of Stock unutilized is monies grouped raised by under issue is the grouped head under the current head Asset 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. In case any sum has been written off on a reduction of capital or revaluation of assets, 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

(b) (c) (d)

2 3 5

years years year

thereafter thereafter thereafter

31. One of the accounts is wrongly grouped under the head Investments while preparing the balance sheet of the company. Single out the wrong account. (a) (b) (c) (d) Interest Investments Investments in in government shares Immovable accrued on or ,debentures trust or securities bonds properties investments

32. One of the accounts is wrongly debited to Profit and Loss Appropriation A/c of a compa ny. Name the wrong account debited (a) (b) (c) (d) Provision Capital Interim Proposed for redemption dividend dividend tax reserve

33. (a) a

Select banking

the company

false is

statement allowed to

in acquire

respect assets for its

of own

assets 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. The scheduled banks are required by RBI to transfer at least ------ of their disclosed profit after adjustment/provision towards bonus to staff a. b. c. d. 35. Select the None incorrect statement in of respect of the financial Statements of 20% 15% 10% above Banks

(a) a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act , 1956. (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, 1949 (d) Form A gives format of a balance sheet and form B gives the format of a profit and loss account

36. (a) (b) (c) (d)

The

financial

statement

of 18 16 17

bank

consists

of

-------

schedules Schedules Schedules Schedules Schedules

37. Investments, Advances, Fixed Assets and other Assets are part of Schedule Nos.--respectively a. b. c. d. 6,7,8,9 7,8,9,10 8,9,10,11 9,10,11,12

38. Liability for partially paid investments in respect of banking companies is grouped under the head----(a) (b) (c) (d) Other Other liabilities Contingent and Investments assets provisions liabilities

39. One of the items is a misfit in a group namely other income of a banking company. Select this item from the following (a) (b) (c) (d) Profit Profit Profit on on Income on sale revaluation exchange on of of Investments investments investments transactions

40. (a) (b) (c) (d)

In

banking

company,

matured

term

deposit

to

be

shown

under----deposits

demand saving term other liabilities and bank

deposits deposits provisions

41. (a) (b) (c) (d)

Advances

given

to

staff

by

bank other

as

employer

should

be

included

in----assets

advances investments none of the above

42. 87.Depreciation on banks property is part of Operating Expenses. Some of the items included under this category are listed below. One of the expenses is wrongly included. Identify that item of expense. (a) (b) (c) (d) depreciation depreciation depreciation depreciation on on on stationary on non-banking motor and cars stamps furniture assets

43. (a) (b) (c) (d)

Select Which Which Which is has

the

correct remained remained NPA

statement for for by of a

in period a bank/

respect not period internal

of exceeding exceeding auditor the or

doubtful 18 18 RBI

debts months? months Inspection above

has

NPA

considered None

uncollectible

44. (a) (b) (c) (d) 45. (a) (b) (c) (d) The

The

provisional 0.40%(revised) 10%(revised) 40%(revised) 100%(revised)

requirement of of of of to maturity should

for

standard total total total total

asset

is----outstanding outstanding outstanding outstanding

investment

under

held

not

exceed

-----of

banks

total

investment. 25% 75% 5%

None

of

the

above

46. The list given below consists of various securities. Identify the security which is SLR security (a) Securities issued by local authorities

(b) (c) (d)

Shares Bonds subsidiaries

47. (a) (b) (c) (d)

Acceptances,

endorsements

and other contingent

guarantees

are

shown

as----assets liabilities advances

other

liabilities

and

provisions

48.

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.

49. The list given below provides the close relationship between the items of each pair. One of the pairs has no such close relationship. Identify this pair. (a) (b) (c) (d) Banking Form Ledger Other B book liabilities company and Profit Letter provisions trustees and of and Loss credit Schedule executors Account register 5

50. Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies (a) (b) (c) Reserves Time Borrowings & deposits in India surplus Matured Refinance Share time from premium deposits NABARD

(d) Other Liabilities & Provisions - Inter office/branch adjustments(net)