AFM is one of the trickiest papers in the JAIIB exam, especially for students with a non-commerce background as it involves concept-based questions and numericals. And due to shortage of time and lack of right resources, preparing well and qualifying the JAIIB AFM exam becomes even tougher.
But don’t worry one bit as we have your back! Below, you will find a detailed and practical preparation strategy for the JAIIB AFM paper. From the new syllabus and important topics to the best books & resources, you will get everything you need to prepare and qualify the AFM (Accounting and Financial Management) paper of JAIIB.
JAIIB AFM Preparation Strategy
Before getting started with the AFM preparation strategy, please note that the AFM syllabus was revised in the JAIIB exam in 2023. To check the updated AFM exam syllabus in detail, read this article: JAIIB Latest Syllabus.
1. Identifying Important Topics of AFM for JAIIB
The first step of your AFM preparation strategy is identifying high-weightage topics.
To identify these, we have analyzed the PYQs of AFM. Based on our analysis, here are the most important topics.
| Most Important Topics of AFM Module A | |
| Chapters | Important Topics |
| Definition, Scope, and Accounting Standards, including IndAS | Accounting Standards |
| Basic Accountancy Procedures | Basic Principles of Accounting |
| Maintenance of Cash/Subsidiary Books and Ledger | Rules of Debit and Credit |
| Bank Reconciliation Statement | Bank Reconciliation Statement |
| Trial Balance, Rectification of Errors and Adjusting & Closing Entries | Types of Errors and Suspense Account |
| Bills of Exchange | Bills of Exchange |
| Bank Audit & Inspection | Types of Bank Audits |
| Most Important Topics of AFM Module B | |
| Chapters | Important Topics |
| Company Accounts – I | Definition & Types of Companies |
| Cash Flow & Funds Flow | Components of Cash Flow |
| Company Accounts – I | Accounting for Share Capital |
| Final Accounts of Banking Companies | Disclosure Requirements of Banks |
| Most Important Topics of AFM Module C | |
| Chapters | Important Topics |
| Ratio Analysis | Different Types of Accounting Ratios |
| Financial Management – An Overview | Basics of Financial Management |
| Financial Mathematics – Calculation of YTM | Bond Theorem |
| Capital Structure & Cost of Capital | Approaches to Calculate Weighted Average |
| Capital Structure & Cost of Capital | Cost of Capital |
| Equipment Leasing/Lease Financing | Lease Agreements |
| Derivatives | Types of Derivatives |
| Working Capital Management | Sources to Finance Working Capital |
| Most Important Topics of AFM Module D | |
| Chapters | Important Topics |
| Taxation: Income Tax / TDS / Deferred Tax | Deductions in Respect of Certain Incomes |
| Costing Methods | Types of Costing Techniques and Methods |
| Standard Costing | Standard Costing |
| Marginal Costing | Marginal Costing |
| Budgets and Budgetary Control | Budgetary Control System |
- Important Topics
- Expected Questions
- Previous Year Papers
2. Identifying Important Modules of AFM for JAIIB
The second step would be to determine the modules you should prioritize.
Based on the analysis of AFM PYQs, here is what you should do:
- Your first priority should be modules A & C. 65-70% of questions are asked from these. To make your preparation even more precise, focus on chapters 1,2,3,4,5 and 6 from Module A and chapters 2,3, 4, 6, and 8 from Module C.
- Next should be Module D as several easy questions in the exam are asked from it. To make your preparation even more precise, focus on chapters 3,4,5 and 6 from Module D.
- Finally, you can go to Module B. You can even ignore this module if you’re short on time. However, if you can spare spare some time, focus on chapters 2,3,4, and 6.
- Practice as many numericals as you can, especially from Modules A and D. Questions from these modules are primarily formula-based, making them easily solvable. Numericals from Module C are more complicated and require more time to solve.
The third step would be to identify the top resources for your AFM preparation.
3. Important Books for AFM Preparation
Here are the most relevant books, you can use to prepare for the JAIIB AFM paper:
| JAIIB AFM Best Books and Sources | |||
| Books | Author | Publisher | Buy Here |
| Class XI – Financial Accounting Part 1 | NCERT | NCERT | Buy Online |
| Class XI – Financial Accounting Part 2 | NCERT | NCERT | Buy Online |
| Class XII – Company Accounts & Analysis of Financial Statements | NCERT | NCERT | Buy Online |
| Accounting & Financial Management For Bankers | IIBF | Macmillan | Buy Online |
Pro Tip: If you find the NCERT books too lengthy, cover these chapters only to save time:
- Class XI Financial Accounting Part 1 – All 8 Chapters.
- Class XI Financial Accounting Part 2 – Chapters 9,12,13.
- Class XII Company Accounts & Analysis of Financial Statements – Chapters 1,2,3,4,5 and 6.
For modules C and D, the Accounting & Financial Management For Bankers from IIBF is probably the best resource. It’s language, however, can be a little complex.
Other Recommended Sources for JAIIB AFM Preparation
- IIBF e-Learning Portal
IIBF offers an e-learning portal where you can access digital study material, online courses, and mock tests to prepare for the AFM paper.
- Online Learning Platforms
There are multiple online learning platforms that offer AFM courses. These platforms offer a wide range of study materials, interactive lessons, practice quizzes, mock tests, and guidance.
- YouTube Videos
EduTap JAIIB YouTube channel provides free insightful tutorials and explanations on important AFM topics, allowing you to understand complex AFM topics through quality video lectures.
- Important Topics
- Expected Questions
- Previous Year Papers
4. Study Plan cum time Table for AFM Preparation
The fourth step would be to make an easy-to-follow timetable to make your preparation easy and more effective.
| JAIIB AFM Preparation Time Table | |||
| Module | Time | Days | Instructions |
| Module A Accounting Principles and Processes | 6 Hours | 3-4 | Goal should be to build conceptual clarity |
| Module B Financial Statement and Core Banking Systems | 3 Hours | 2-3 | Learn the basic concepts about final statements |
| Module C Financial Management | 6 Hours | 3-4 | Definitions, Numbers, Basic numericals and formulae Goal should be to build conceptual clarity |
| Module D Taxation and Fundamental of Costing | 5 Hours | 3-4 Days | You can fetch more marks with less effort |
| Total | 20 Hours | ||
Here is a detailed video explaining the preparation strategy for AFM:
5. Tips for JAIIB AFM Preparation
The last step would be to keep the following tips to keep in mind when preparing for the JAIIB AFM exam:
- Take short breaks (5-10 minutes) between study sessions.
- Invest more time in preparation on weekends.
- To make your preparation easier, you can sign up for crash courses and test series.
- Previous year MCQs are often repeated. Therefore, referring to PYQs can help you score better.
Note:
If you’re looking for a comprehensive solution that increases your chances of clearing the JAIIB AFM exam, you can opt for EduTap’s JAIIB AFM Master Course.
It comes with recorded and live sessions, concepts, notes, solved PYQs, and multiple mock tests. In addition, you can connect with our mentors if you need answers to your queries.
- Important Topics
- Expected Questions
- Previous Year Papers
Conclusion
This preparation strategy can help you prepare important topics, chapters, and modules of the JAIIB AFM paper. However, make sure you follow the timetable and invest a few hours daily to complete the syllabus timely.
