12 Important Topics That Appear Every Year in JAIIB AFM Exams

The JAIIB (Junior Associate of the Indian Institute of Bankers) exam is one of the most important exams for banking professionals looking to advance their careers in Accounts & Finance Management (AFM). As per the released exam date notice, the JAIIB November cycle exam is scheduled to start from 2nd November, and the AFM paper will be held on 9th November 2025. Aspirants preparing for the IIBF JAIIB November exam must revise these repetitive topics before the exam to score higher marks.

In this blog, we provide a detailed breakdown of the 12 most important AFM topics that mostly appear in the exam. These topics have previously accounted for 30–35 marks in the last 5 exams.

12 Essential JAIIB AFM Topics

The 12 most important topics for the JAIIB AFM exam are as follows:

1. Accounting Concept
2. Bank Reconciliation
3. Rectification of Errors
4. How to Maintain Company Accounts
5. Cash Flow Statement
6. Annuity
7. Bond Valuation
8. Cost of Capital
9. Capital Budgeting
10. Tax
11. Cost of Accounting Method
12. Marginal Costing

Module-wise Breakdown of Important Topics

Preparing for AFM (Accounts & Finance Management) can feel challenging due to the vast syllabus, but focusing on high-frequency and repeated topics can give you a major advantage. These topics consistently appear in exams and together cover 30–37 marks. By strategically preparing these, and a few additional subtopics, you can target 50 marks confidently.

Module A: Basics of Accounting

Module A covers the foundational accounting principles that form the backbone of the AFM syllabus. Focusing on these topics ensures that you secure marks with direct questions and case-study-based problems. These topics are repeated in almost every exam and are essential for a strong start.

Topic	Description	Approx. Marks
Accounting Concepts	Core accounting principles; commonly asked in direct questions or case studies.	2–3
Bank Reconciliation Statement (BRS)	Requires careful practice; recurring in exams; moderately tough but manageable.	2–3
Rectification of Errors & Depreciation	Frequently repeated topics; need attention to detail for accuracy.	2–3

Module B: Company Accounts

Module B deals with company accounts and cash flow statements. These topics are high-scoring and non-negotiable, often contributing a significant portion of Module B marks. Preparing them thoroughly ensures a solid foundation in corporate accounting.

Topic	Description	Approx. Marks
Company Accounts	Journal entries, accounting cycle, concepts; high-scoring portion of the module.	5–10
Cash Flow Statement	Covers cash inflows/outflows; essential for exam questions; non-negotiable.	7–8

Module C: Financial Management

Module C is formula-driven and calculation-intensive. Topics in this module are frequently repeated and include both conceptual and numerical questions. Practicing formulas and understanding their derivations will help you secure marks efficiently.

Topic	Description	Approx. Marks
NUT (Numerical Utility Tool)	Formula-driven and calculation-based; minimal effort, consistent marks.	2
Bond Valuation	Conceptual + numerical questions; includes YTM & duration; recurring topic.	3
Cost of Capital	Includes equity, debt, preference shares, total cost; important formula-driven topic.	2–3
Capital Budgeting	Decision-making methods using multiple formulas; unavoidable topic.	3

Module D: Taxation & Cost Accounting

Module D covers taxation and cost accounting, which are high-yield and formula-driven topics. Focusing on the key areas of income tax, GST, and cost accounting methods can easily secure you additional marks.

Topic	Description	Approx. Marks
Income Tax	TDS rates, sections, deductions under Section 80, TCS; frequently asked.	6
GST	Basic terminology, input tax credit, reverse charge mechanism, registration limits, forms.	4
Cost Accounting Methods	Selection of method for different businesses and cost computation process.	5

Last Minute Preparation Strategy

Last-minute preparation strategies before appearing for the JAIIB AFM exam are as follows:

1. Focus on High-Weightage Topics – Prioritize these 12 “unavoidable” topics first. They cover 30–37 marks.
2. Extend to 15–18 Topics for 50 Marks – Adding a few extra subtopics like Depreciation, Balance Sheet Equation, and Ratios can help cover 50 marks smartly.
3. Practice Formulas & Calculations – Modules C and D are formula-heavy. Focus on understanding derivations rather than rote memorization.
4. Use PDF & Notes – Prepare using downloadable PDFs for quick revision make structured notes for all topics.
5. Mock Tests – Solve last 5-year papers to understand trends. These topics appear repeatedly in exams.

JAIIB AFM May Memory-Based Questions

Q1. Under the Going Concern Assumption, which of the following treatments is most appropriate?

A. Fixed assets are recorded at their current market value every year.
B. All assets are liquidated annually to reflect true worth.
C. Prepaid expenses are deferred and not treated as current period expenses.
D. Profits are distributed even if losses exist.

Answer: C

Q2. In double-entry bookkeeping, if a business buys machinery for ₹5,00,000 by cheque, what is the
correct effect?

A. Debit Cash; Credit Machinery
B. Debit Machinery; Credit Bank
C. Debit Capital; Credit Machinery
D. Debit Purchase; Credit Bank

Answer: B

Q3. A company bought machinery worth ₹4,00,000. It incurred ₹50,000 for transportation, ₹25,000
for installation, and a trade discount of ₹10,000 was allowed. It also paid ₹15,000 for
maintenance during the first year.

What will be the capitalized value of machinery as per cost concept?

A. ₹4,75,000
B. ₹4,65,000
C. ₹4,85,000
D. ₹4,90,000

Answer: A
Explanation: ₹4,00,000 + ₹50,000 + ₹25,000 – ₹10,000 = ₹4,65,000. Maintenance is revenue
expense.

Q4. What is the correct treatment of Bad Debts and Provisions for Doubtful Debts in the financial
statements of banks?

A. Shown under Expenses in the Balance Sheet and Profit in Profit C Loss.
B. Deducted from Gross Advances in the Balance Sheet and recorded under “Provisions and
Contingencies” in PCL.
C. Not disclosed separately in final accounts as per Schedule III.
D. Included only in footnotes and never deducted from advances.

Answer: B

Q5. According to the Companies Act, 2013, which of the following best explains the reason for
maintaining the distinction between different types of companies such as statutory, registered,
foreign, and government companies?

A. This distinction determines the tax liabilities applicable to different classes of companies
only.
B. These categories govern how dividends are calculated and distributed under the Companies
Act.
C. The classification affects legal formation, operational governance, audit requirements, and
compliance protocols defined under respective regulatory statutes.
D. The categories are symbolic and used primarily for internal classification without legal
consequences.

Answer: C

Key Takeaways

Module	Important Topics	Minimum Marks in Exam	Notes
A	Accounting Concepts, BRS, Rectification of Errors, Depreciation	7–8	Repeated in all exams, easy to secure marks
B	Company Accounts, Cash Flow Statement	12–13	Non-negotiable, moderate effort required
C	NUT, Bond Valuation, Cost of Capital, Capital Budgeting	10	Formula-driven, some conceptual mix
D	Income Tax, GST, Cost Accounting Methods	15	Focus on core calculations & basic GST concepts

FAQs

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