JAIIB AFM Preparation 2025, Most Important Topics & Study Plan

The Junior Associate of the Indian Institute of Bankers (JAIIB) examination is a significant milestone for banking professionals aiming to enhance their expertise in banking operations and financial management. An important component of this examination is the Accounting and Financial Management for Bankers (AFM) paper. Success in this paper requires a well structured, module wise JAIIB AFM preparation strategy.

Understanding the JAIIB AFM Syllabus

The AFM paper comprises 100 questions, each carrying one mark, to be completed in 2 hours. The JAIIB AFM Syllabus is divided into four modules:

1. Module A: Accounting Principles and Processes
2. Module B: Financial Statement and Core Banking Systems
3. Module C: Financial Management
4. Module D: Taxation and Fundamentals of Costing

JAIIB AFM Preparation Strategy

Check out the module wise strategy for JAIIB AFM Preparation below:

Module A: Accounting Principles and Processes

1. Understand Fundamental Concepts: Start with basic accounting principles, including Ind AS and GAAP. Clarity in these will help in solving case-based questions.
2. Master Bank Reconciliation & Trial Balance: These are scoring topics that require regular practice. Attempt at least 10 BRS problems weekly.
3. Revise Accounting Standards: Questions on revenue recognition, depreciation, and rectification of errors are common. Make short notes for quick revision.
4. Solve Practical Problems: Hands-on practice is essential for understanding adjusting entries and rectification of errors. Use mock tests to assess your understanding.

Module B: Financial Statement and Core Banking

1. Focus on Financial Statement Analysis: Learn how to interpret Profit & Loss Statements, Balance Sheets, and Fund Flow Statements. Understand the meaning of each ratio.
2. Memorize Cash Flow & Fund Flow Techniques: Many questions involve direct and indirect methods of cash flow preparation. Practice them repeatedly.
3. Learn Core Banking Accounting: Understand how transactions are recorded in CBS (Core Banking Solutions) and how financial statements of banks are different from companies.
4. Use Real-Life Financial Statements: Analyze banking financial statements from RBI reports to get hands-on experience with formats.

Module C: Financial Management

1. Master Financial Mathematics: Focus on calculations involving simple & compound interest, annuities, and bond yield (YTM). Questions related to these are heavily tested.
2. Ratio Analysis is a Must: Memorize key profitability, solvency, liquidity, and efficiency ratios along with their formulas and interpretations.
3. Capital Structure & Cost of Capital: Learn how companies and banks decide their debt-equity mix. Practice Weighted Average Cost of Capital (WACC) calculations.
4. Understand Risk Management: Read about derivatives, forward contracts, and working capital financing—these are highly application-based topics.

Module D: Taxation and Costing

1. Stay Updated with Tax Rules: Focus on Income Tax, TDS, GST, and their impact on bank transactions. Be aware of tax exemptions for banks.
2. Understand Costing Techniques: Learn marginal costing, standard costing, and budgetary control to answer numerical questions effectively.
3. Budgeting and Financial Planning: Prepare for questions related to budget variance analysis and break-even point calculations.
4. Practice Tax Computation Problems: Solve at least 10 taxation based numerical problems before the exam to improve accuracy.

JAIIB AFM Important Topics

Check out the list of JAIIB AFM Important Topics below:

Module A: Accounting Principles and Processes

• Accounting Standards (including Ind AS)
• Double-entry System & Basic Accountancy Procedures
• Bank Reconciliation Statement
• Trial Balance & Rectification of Errors
• Depreciation Accounting
• Capital and Revenue Expenditure
• Adjusting & Closing Entries

Module B: Financial Statement and Core Banking Systems

• Final Accounts of Companies & Banks
• Cash Flow and Fund Flow Statements
• Financial Statement Analysis
• Core Banking System Accounting
• Preparation of Profit & Loss Account and Balance Sheet

Module C: Financial Management

• Financial Mathematics (Interest, Annuities, YTM)
• Ratio Analysis
• Capital Structure & Cost of Capital
• Working Capital Management
• Derivatives and Risk Management
• Lease Financing & Dividend Policy

Module D: Taxation and Costing

• Income Tax, TDS, GST
• Costing Techniques (Standard, Marginal, and Budgetary Control)
• Cost & Management Accounting
• Taxation Rules for Banking Transactions
• Budgeting & Budgetary Control

JAIIB AFM Study Plan for 45 Days

Preparing for the JAIIB Accounting & Financial Management (AFM) exam requires a well-structured plan to cover all four modules effectively. This 45-day study plan is designed to help aspirants systematically prepare, revise, and practice important concepts before the exam.

How to Use This Study Plan?

• Spend 2-3 hours daily on focused study.
• Follow a module-wise approach for better understanding.
• Allocate time for concept learning, revision, and mock tests.
• Solve numerical problems regularly to improve accuracy.
• Revise formulas and key concepts every week.

Days 1-10: Focus on Module A (Accounting Principles & Processes)

Day 1-2: Introduction to Accounting, Basics of Double-Entry System, Journal Entries
Day 3-4: Ledger, Trial Balance, Rectification of Errors
Day 5-6: Bank Reconciliation Statement, Capital & Revenue Expenditure
Day 7-8: Accounting Standards (Ind AS), Depreciation Accounting
Day 9: Adjusting and Closing Entries, Financial Reporting Concepts
Day 10: Revision and Practice Questions (Solve at least 30 MCQs)

Tip: Focus on understanding concepts rather than memorizing. Bank Reconciliation and Rectification of Errors are scoring topics, so practice well.

Days 11-20: Covering Module B (Financial Statements & Core Banking Systems)

Day 11-12: Final Accounts of Banking Companies – Format, Profit & Loss, Balance Sheet
Day 13-14: Cash Flow & Fund Flow Statements – Preparation Methods
Day 15-16: Financial Statement Analysis – Ratios, Comparative Statements
Day 17-18: Core Banking System – Features, Role in Accounting
Day 19: Understanding Bank-Specific Accounting Transactions
Day 20: Revision and Practice Questions (Solve at least 35 MCQs)

Tip: Pay attention to ratio analysis and financial statement interpretation as they are frequently asked in the exam.

Days 21-30: Mastering Module C (Financial Management)

Day 21-22: Financial Mathematics – Simple & Compound Interest, Present Value, Future Value
Day 23-24: Yield to Maturity (YTM) Calculations – Bond Pricing
Day 25-26: Ratio Analysis – Profitability, Liquidity, Solvency Ratios
Day 27-28: Capital Structure, Cost of Capital – WACC, Debt-Equity Ratio
Day 29: Working Capital Management – Sources of Finance, Operating Cycle
Day 30: Revision and Practice Questions (Solve at least 40 MCQs)

Tip: Financial mathematics requires regular practice. Make a formula sheet and review it daily.

Days 31-40: Completing Module D (Taxation & Costing)

Day 31-32: Income Tax, TDS, GST – Basic Concepts & Banking Applications
Day 33-34: Cost Accounting – Marginal, Standard, and Budgetary Control
Day 35-36: Taxation Rules for Banking Transactions – Tax Deducted at Source (TDS), Tax Collected at Source (TCS)
Day 37-38: Budgeting & Budgetary Control – Variance Analysis
Day 39: Revision of Key Topics from Module D
Day 40: Full-Length Practice Test (Mock 1)

Tip: Taxation rules can be tricky, so revise important sections and exemptions applicable to banks.

Days 41-45: Final Revision & Mock Tests

Day 41: Revise Important Formulas, Financial Mathematics, Ratio Analysis
Day 42: Solve Mock Test 2 with a timer (Analyze weak areas)
Day 43: Revise Accounting Principles and Financial Statements
Day 44: Solve Mock Test 3 + Go through previous mistakes
Day 45: Quick Review of All Modules, Short Notes, Last-Minute Revision

Tip: Focus on your weak areas, avoid starting new topics, and revise frequently asked questions from previous exams.

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