IBB Banking Diploma Examination

JAIBB Banking Diploma Examination question of different years by Institute of Bankers, Bangladesh (IBB)

92nd JAIBB Question 2021

1. Principles of Economics and Bangladesh Economy
2. Business communication
3. Organization and Management
4. Laws and Practice of Banking
5. Accounting For Financial Services
6. Marketing of Financial Services


November 2019
1. Principles of Economics and Bangladesh Economy
2. Business communication
3. Organization and Management
4. Laws and Practice of Banking
5. Accounting For Financial Services

6. Marketing of Financial Services

July 2019

1. Principles of Economics and Bangladesh Economy
2. Business communication
3. Organization and Management
4. Laws and Practice of Banking
5. Accounting For Financial Services
6. Marketing of Financial Services

December 2018

1. Principles of Economics and Bangladesh Economy
2. Business communication
3. Organization and Management
4. Laws and Practice of Banking
5. Accounting For Financial Services

6. Marketing of Financial Services

1 . (a) What is accounting information? How can a banker be benefited from accounting information’?
(b) Discuss the role of accounting in creating the process for values and accountability.
(c) What do you mean by conceptual framework of accounting? State the qualitative characteristics of accounting information.

2. (a) Define GAAP. State the importance and necessity of GAAP.
(b) What are accounting assumptions? Explain them with example. 8
(ç) What is cost-benefit constraints? Explain. 4

3 (a) State the effects of transactions over accounting equation.
(b) "Assets and expenses recording process are same”—Explain.
(c) "Income and liability accounts always show credit balance.” Why?
(d) What is visible and invisible transactions? Give some examples.

4 (a) Differentiate between expired and unexpired cost.
(b) How would you classify errors in book keeping? What errors does double entry unable to prevent and why?
(c) There was an error in the trial balance of A & Co. Ltd. on 3 1 st
December, 2017 and the difference in books was carried to suspense account. The following errors were detected after the close study of the books :—
(I) Tk. 900 received from Mr. Ahmed was posted to the debit of his account.
(ii) Tk. 400 being purchase returns were posted to the debit of purchase account.
(iii) Discounts Tk. 650 received were posted to the debit of discount accounts.
(iv) Tk. 1,000 paid for repairs to motor car was debited to Motor Car Account as Tk. 600.
(v) Tk. 1000 paid to H & Co. was debited to the account of B & Co.
Give Journal entries to rectify the above errors, and state what amount was carried to the Suspense Account.

5 (a) What is meant by receivables? Discuss about the classification of receivables
(b) What is allowance for doubtful accounts? Distinguish between had debts expense and allowance for doubtful accounts.
(c) Information related to Kap Shin Company for 2017 is summarized below
Total credit sales                                     Tk.21,00,000
Accounts Receivable at December 31           8,37,000
Bad debts written off                                        33,000
Required
(i) What amount of Bad debt expenses will Kap Shin Company report if it uses the direct write off method of accounting for bad debts?
(ii) Assume that Kap Shin Company estimates its had debts expense to be 2% of credit sale. What amount of bad debts expenses will Kap Shin record if it has an allowance for doubt full accounts credit balance of Tk. 4,000?
(iii) Assume that Kap Shin Company estimates its bad debts expense based on 6% of accounts receivable. What amount of had debt expense will Kap Shin record if it has an allowance for doubtful account credit balance of Tk. 3,000?
(iv) Assume that the same facts as in (iii), except that there is a Tk. 3,000 debit balance in allowances for doubtful accounts. What amount of had debt expenses will Kap. Shin record?

6. (a) Which cost elements are included in inventory? What practical problems arise by including the cost of such elements?
(b) Differentiate between periodic and perpetual inventory system.
(c) Salsabil Autosales uses a FIFO perpetual inventory system. On April 1. the new car inventory records show total inventory Tk 72.000 consisting of the followings :—

Model	Units	Unit Cost
A	2	Tk. 21000
B	2	15000

During April the following purchases and sales ere made on account:

JAIBB coaching conducted by The Institute of Bankers, Bangladesh.

Dated	Lesson Plan
29/10/18	Service, Merchandise and Manufacturing Operations. Cost of goods sold, income statement & Balance sheet (theory and sheet discussions.)
30/10/18	Income statement & Balance sheet (Math and Class Work)
31/10/18	Cash flow statement- Direct & indirect method and Limitations of Balance sheet.
01/11/18	Partnership and joint stock companies, Financial statement of bank and other financial institutes.
02/11/18	Inventory valuation- under periodic and perpetual methods for ascertaining closing inventory.
03/11/18	Valuation of closing inventory under average, FIFO, LIFO method.
04/11/18	Valuation of fixed assets, methods of depreciation and recording of depreciation.
05/11/18	Different types of journals, Cash book and bank reconciliation statement.

Institute of Bankers, Bangladesh

(1) “T” Account, Definition, Format and Example:

• Date column, to show date of the transaction.
• Details column, to provide cross reference with regard to the other account(s) involved in the ledger.
• Folio column, to provide additional reference of the item recorded in the account.
• Amount column, to record the monetary value of the item debited or credited to the account.

 

(2) Three Column Ledger Account (Running Balance Method):

Definition and Format of Three Column Ledger Account:

• Date column, to show date of the transaction for both debt and credit entries.
• Details column, to provide cross reference with regard to the other accounts involved in the ledger.
• Folio column, to provide additional reference of the item recorded in the account.
• Debit amount column, to record the monetary value of the item debited.
• Credited amount column, to record the monetary value of the item credited.
• Balance amount column, to show the net balance after each and every transaction, therefore this layout is called running balance method.

Video lecture on Depreciation

JAIBB Accounting Question December 2015

Question AND Soloution

আপনাদের কাছে কোন প্রশ্ন বা এর সমাধান থাকলে আমাদেরকে ই-মেইলে murad.dc07.diploma@blogger.com পাঠিয়ে দিতে পারেন। এতে আপনি ও উপকৃত হবেন। যে কোন সময় ibb-diploma.blogspot.com এ এই তথ্যগুলো আপনার কাজে লাগবে। একজন কট্রিবিউটর হিসেবে আপনার নাম লেখা থাকবে এই ব্লগে। ধন্যবাদ।

• Management: for analyzing the organization's performance and position and taking appropriate measures to improve the company results.
• Employees: for assessing company's profitability and its consequence on their future remuneration and job security.
• Owners: for analyzing the viability and profitability of their investment and determining any future course of action.

• Creditors: for determining the credit worthiness of the organization. Terms of credit are set by creditors according to the assessment of their customers' financial health. Creditors include suppliers as well as lenders of finance such as banks.
• Tax Authourities: for determining the credibility of the tax returns filed on behalf of the company.
• Investors: for analyzing the feasibility of investing in the company. Investors want to make sure they can earn a reasonable return on their investment before they commit any financial resources to the company.
• Customers: for assessing the financial position of its suppliers which is necessary for them to maintain a stable source of supply in the long term.
• Regulatory Authorities: for ensuring that the company's disclosure of accounting information is in accordance with the rules and regulations set in order to protect the interests of the stakeholders who rely on such information in forming their decisions.

JAIBB Accounting For Financial Service Math Solution -Last Edition May 2018 (Paperback) - BUY NOW

What is accounting?
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.

One part of accounting focuses on presenting the information in the form of general-purpose financial statements (balance sheet, income statement, etc.) to people outside of the company. These external reports must be prepared in accordance with generally accepted accounting principles often referred to as GAAP or US GAAP. This part of accounting is referred to as financial accounting.

What are the main objectives of Accounting?

• To keep systematic records: Accounting is done to keep a systematic record of financial transactions. In the absence of accounting there would have been terrific burden on human memory which in most cases would have been impossible to bear.

• To protect business properties: Accounting provides protection to business properties from unjustified and unwarranted us. This is possible on account of accounting supplying the information to the manager or the proprietor.

• To ascertain the operational profit or loss: Accounting helps is ascertaining the net profit earned or loss suffered on account of carrying the business. This is done by keeping a proper record of revenues and expenses of a particular period. The profit and loss account is prepared at the end of a period and if the amount of revenue for the period is more than the expenditure incurred in earning that revenue, there is said to be a profit. In case the expenditure exceeds the revenue, there is said to be a loss.

• To ascertain the financial position of business: The profit and loss account gives the amount of profit or loss made by the business during a particular period. However, it is not enough. The businessman must know about his financial position i.e., where he stands; what he owes and what he owns? This objective is served by the balance sheet or position statement.

• To facilitate rational decision making: Accounting these days has taken upon itself the task of collection, analysis and reporting of information at the required points of time to the required levels of authority in order to facilitate rational decision making.

Question: Bank Reconciliation::
i) Balance as per Bank statement 86129
ii) Deposit in transit 44700
iii) Outstanding cheque 1,29,478
iv) Bank error (deposit understated) 10,000
v) NSF cheque from customer debited to the account by the bank 2300
vi) Bank service charge for december  75
vii) Error of deposit book (cheque to pay creditor at Tk 300 but written for only tk 30)  270
viii) Bank Balance as per depositor recorded 31-12-2014     13,506

Solution:

Particulars	Amount	Amount
Balance as per Bank statement		86179
Add, Deposit in transit	44700
Add, Deposit understated	10000
		54700
Less, Outstanding cheque		129478
Correct Bank Balance		11401
Balance as per depositor's book		13506
Add, Deposit Book Error		270
Less, NSF cheque	2300
Less, Bank service charge	75
		2375
Correct Bank Balance		11401

Q. 4(d)
A) Prepare bank reconciliation statement showing corrected balance in Both Bank statement and Aruna Traders ledger account


Solution:

Auroni Traders

Bank Reconciliation statement

Particulars	Tk	Tk.
Bank Balance as per Bank statement		40,001.36
Add, Deposit after Banking Hour		3,287.20
Bank Balance		43,288.56
Less, Outstanding cheques
(1640+800+82+3220)		5,742.00
Correct Cash Balance		37,546.56
Bank Balance as per books		34,102.64
Add, Proceed from collection	4,000.00
Add, Interest earned on deposit	219.92
		4,219.92
		38,322.56
Less, Fees charged plus vat	40.00
Cheque for collection but return unpaid	591.00
Bank service charge and vat	96.00
Income tax	22.00
		749.00
Less, Errors over statement (896-869)		27
Total less		776.00
Corrected Bank Balance		37,546.56

যদি Bank Balance as per Bank statement দিয়ে শুরু হয় তবে Outstanding cheques amount বিয়োগ করতে হবে।
একটি সহজ নোটঃ

• যদি Bank Balance as per Bank statement দিয়ে শুরু হয় তাহলে এটার অর্থ হল আমি Bank Balance as per Bank statement এর correct balance বাহির করব। এক্ষেত্রে সাধারনত কিছু নিয়ম মনে রাখলে সুবিধা হয়ঃ

Add,
- wrongly debited from this account
-deposited by customer after bank hour
- cheque in transit
- wrongly less posted by bank officer

Less,
- Outstanding cheque (cheque issued by company but not cashed or not presented to the bank)
- wrongly credited