100+ Free IBPS RRB CA Officer Scale II Practice Questions

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2026 Statistics

Key Facts: IBPS RRB CA Officer Scale II Exam

240

Total Questions in the Online Exam

IBPS RRB Official Pattern

0.25

Negative marking penalty for wrong answers

IBPS Examination Rules

1 Year

Minimum post-qualification experience as a CA

IBPS Eligibility Criteria

75%

Priority Sector Lending (PSL) target for RRBs

RBI Master Directions

The IBPS RRB CA Scale II exam features a single online paper of 240 Q (Professional Knowledge is 40 Q) for 200 marks, with 150 minutes duration and a 0.25 penalty for wrong answers. Candidates must have a CA qualification and 1 year post-qualification experience. Fees are ₹175 (SC/ST/PWBD) and ₹850 (others).

Sample IBPS RRB CA Officer Scale II Practice Questions

Try these sample questions to test your IBPS RRB CA Officer Scale II exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under AS 9 (Revenue Recognition), when delivery is delayed at the buyer's request and the buyer takes title and accepts billing, revenue should be recognized immediately provided:

A.The goods are still in the physical possession of the seller without any conditions

B.It is probable that delivery will be made, the item is on hand and ready for delivery, and the buyer acknowledges the deferred delivery instructions

C.The seller has insured the goods for transit and is ready to ship at any time

D.The buyer pays 100% of the invoice amount in advance before billing

Explanation: According to AS 9, revenue should be recognized when delivery is delayed at the buyer's request, provided it is probable that delivery will be made, the item is on hand, identified and ready for delivery to the buyer at the time the sale is recognized, and the buyer specifically acknowledges the deferred delivery instructions.

2According to AS 19 (Leases), which of the following circumstances would normally lead to a lease being classified as a finance lease?

A.The lease term is for a minor part of the economic life of the asset

B.The lessee has the option to purchase the asset at a price expected to be sufficiently higher than the fair value

C.At the inception of the lease, the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset

D.The leased assets are of a general nature such that any lessee can use them without major modifications

Explanation: Under AS 19, a lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to ownership. One of the primary indicators is when the present value of the minimum lease payments (MLP) at the inception of the lease amounts to at least substantially all of the fair value of the leased asset.

3A company enters into a 5-year lease of an office building. The lease payments are ₹10,00,000 annually, payable at the end of each year. The lessee's incremental borrowing rate is 10% per annum. (Present value factor of an ordinary annuity for 5 years at 10% is 3.7908). Under Ind AS 116, what is the initial lease liability to be recognized by the company?

A.₹50,00,000

B.₹37,90,800

C.₹41,69,880

D.₹34,46,200

Explanation: Under Ind AS 116, at the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at that date. The lease liability is calculated as: Annual Lease Payment × PV Annuity Factor = ₹10,00,000 × 3.7908 = ₹37,90,800.

4Which of the following represents the correct sequence of steps in the 5-step revenue recognition model under Ind AS 115?

A.Identify contract -> Identify performance obligations -> Determine transaction price -> Allocate transaction price -> Recognize revenue

B.Identify performance obligations -> Identify contract -> Determine transaction price -> Allocate transaction price -> Recognize revenue

C.Identify contract -> Determine transaction price -> Identify performance obligations -> Allocate transaction price -> Recognize revenue

D.Identify contract -> Identify performance obligations -> Allocate transaction price -> Determine transaction price -> Recognize revenue

Explanation: The core principle of Ind AS 115 is that an entity recognizes revenue in accordance with a 5-step model: Step 1: Identify the contract(s) with a customer; Step 2: Identify the performance obligations in the contract; Step 3: Determine the transaction price; Step 4: Allocate the transaction price to the performance obligations in the contract; Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.

5Under AS 13 (Accounting for Investments), how should current investments be valued in the financial statements?

A.At historical cost only

B.At fair value / market value only

C.At lower of cost and fair value

D.At cost plus accrued interest/dividends

Explanation: AS 13 states that current investments (investments that are by their nature readily realizable and intended to be held for not more than one year) should be carried in the financial statements at the lower of cost and fair value. This ensures compliance with the conservatism principle.

6For the financial year 2025-26, a company has profit before tax of ₹10,00,000. Book depreciation is ₹1,50,000, while depreciation allowed as per the Income Tax Act is ₹2,20,000. There are no other differences. If the corporate tax rate is 30%, what is the Deferred Tax Liability (DTL) to be created as per AS 22?

A.₹21,00,000 DTL

B.₹21,000 DTL

C.₹21,000 Deferred Tax Asset (DTA)

D.No deferred tax is required since it is a temporary difference

Explanation: A timing difference arises because tax depreciation (₹2,20,000) is higher than book depreciation (₹1,50,000) by ₹70,000. This is a taxable temporary difference because the book value of the asset is higher than its tax base, meaning tax will be higher in future years. The Deferred Tax Liability is calculated as: Timing Difference × Tax Rate = ₹70,000 × 30% = ₹21,000.

7A company had 5,00,000 equity shares outstanding at the beginning of the year. On 1st October of the financial year, the company issued bonus shares in the ratio of 1:1. The net profit for the year is ₹15,00,000. What is the Basic Earnings Per Share (EPS) under AS 20?

A.₹3.00

B.₹2.00

C.₹1.50

D.₹2.40

Explanation: Under AS 20, bonus shares do not represent an influx of capital and are treated as if they were outstanding from the beginning of the earliest period reported. Thus, the number of shares is adjusted retrospectively. Total shares = 5,00,000 + 5,00,000 (bonus) = 10,00,000 shares. Basic EPS = Net Profit / Total Adjusted Shares = ₹15,00,000 / 10,00,000 = ₹1.50.

8According to AS 26 (Intangible Assets), how should expenditure on the research phase of an internal project be treated?

A.Capitalized as an intangible asset if future economic benefits are possible

B.Expensed in the Statement of Profit and Loss in the period in which it is incurred

C.Deferred and amortized over a period not exceeding 5 years

D.Capitalized as Capital Work-in-Progress until the development phase starts

Explanation: AS 26 states that no intangible asset arising from research (or from the research phase of an internal project) should be recognized. Expenditure on research should be recognized as an expense when it is incurred, because an entity cannot demonstrate that an intangible asset exists that will generate probable future economic benefits.

9Under AS 29, a provision is recognized when an enterprise has a present obligation as a result of a past event, and which of the following conditions are met?

A.It is possible that an outflow of resources will be required, and a reasonable estimate can be made

B.It is probable that an outflow of resources embodying economic benefits will be required, and a reliable estimate can be made of the amount of the obligation

C.An outflow of resources is remote, but the board of directors decides to make a provision for conservatism

D.The obligation is legally enforceable, regardless of whether any outflow of resources is likely

Explanation: AS 29 requires that a provision should be recognized when: (a) an enterprise has a present obligation as a result of a past event; (b) it is probable (i.e. more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation.

10For a banking company in India, how should interest income on Non-Performing Assets (NPAs) be recognized under RBI guidelines?

A.On accrual basis, as done for standard assets

B.On cash / realization basis only

C.On a estimated basis using historical recovery rates

D.Recognized in a separate 'Interest Suspense Account' and credited to P&L annually

Explanation: According to RBI prudential norms, interest income from Non-Performing Assets (NPAs) is not recognized on an accrual basis. Instead, it must be recognized only when it is actually realized (cash basis). Any interest already accrued and credited to the P&L account in previous quarters but not realized must be reversed.

About the IBPS RRB CA Officer Scale II Exam

The IBPS RRB Chartered Accountant Officer Scale II exam is a highly competitive, single-level online examination followed by a common interview, conducted for recruitment of Specialist Officers in Regional Rural Banks (RRBs) across India. The exam covers reasoning, quantitative aptitude, financial awareness, language, computer knowledge, and a crucial 40-question Professional Knowledge section. This practice bank provides exactly 100 high-quality practice questions covering all critical components of the professional knowledge syllabus, including Accounting Standards, Auditing, Financial Management, Taxation, Company Law, and Banking Regulation.

Questions

240 scored questions

Time Limit

2 hours and 30 minutes (150 minutes)

Passing Score

Cutoff marks vary by year (sectional and overall cutoffs apply)

Exam Fee

₹175 for SC/ST/PWBD and ₹850 for all other categories (Institute of Banking Personnel Selection (IBPS))

IBPS RRB CA Officer Scale II Exam Content Outline

20%

Accounting Standards & Financial Reporting

AS & Ind AS compliance, preparation & analysis of financial statements, schedule III classification, and banking specific accounting.

15%

Auditing & Assurance

CARO 2020 reporting, Internal Audit provisions, Bank Audit guidelines (LFAR), standards on auditing (SAs), and audit of advances.

15%

Financial Management & Costing

Capital budgeting methods, cost of capital calculation, operating & financial leverage, working capital management, marginal costing, standard costing, and financial ratios.

20%

Direct & Indirect Taxation

Income Tax Act 1961 (heads of income, residential status, deductions, TDS/TCS, MAT, corporate tax) and GST (registration, supply concepts, value & time of supply, ITC utilization).

15%

Company Law

Companies Act 2013 (incorporation, prospectus, share capital redemption, auditor appointment, rotation, board meetings, CSR, related party transactions, deposits, buyback).

15%

Banking Regulation & Operations

Banking Regulation Act 1949, RBI NPA asset classification and provisioning, Basel III norms, SARFAESI Act, IBC, FEMA, Priority Sector Lending (PSL) rules for RRBs.

How to Pass the IBPS RRB CA Officer Scale II Exam

What You Need to Know

Passing score: Cutoff marks vary by year (sectional and overall cutoffs apply)
Exam length: 240 questions
Time limit: 2 hours and 30 minutes (150 minutes)
Exam fee: ₹175 for SC/ST/PWBD and ₹850 for all other categories

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

IBPS RRB CA Officer Scale II Study Tips from Top Performers

1Practice numerical problems in Financial Management (capital budgeting, cost of capital, leverages, and financial ratios) and Costing (break-even point and standard costing variances).

2Keep updated with the latest RBI guidelines on NPA classification, provisioning requirements, and Basel III Capital Adequacy ratios.

3Understand the key clauses of CARO 2020, Section 143 of the Companies Act 2013, and the reporting timeline for bank audits (Long Form Audit Report).

4Revise TDS and TCS rates, GST input tax credit (ITC) offset rules, and provisions of the Income Tax Act 1961 related to corporate taxation and MAT.

5Solve this mock bank of 100 questions to assess your conceptual understanding of professional knowledge topics.

Frequently Asked Questions

What are the eligibility criteria for IBPS RRB CA Officer Scale II?

Candidates must be a Certified Associate (CA) from the Institute of Chartered Accountants of India (ICAI) and possess a minimum of 1 year of post-qualification experience as a Chartered Accountant. The age limit is between 21 and 32 years, with relaxations for reserved categories.

What is the exam pattern and duration of the IBPS RRB Scale II Specialist Officer exam?

It is a single online objective exam consisting of 240 questions for 200 marks. The total duration is 150 minutes. The sections include Professional Knowledge, Reasoning, Financial Awareness, English/Hindi, Computer Knowledge, and Quantitative Aptitude & Data Interpretation. There is a penalty of 0.25 marks for every wrong answer.

What topics are covered in the Professional Knowledge section of the CA Officer exam?

The Professional Knowledge section has 40 questions covering Accounting Standards (AS & Ind AS), Auditing & Assurance (CARO 2020, Bank Audit, Standards on Auditing), Financial Management & Costing, Income Tax, GST, Company Law (Companies Act 2013), and Banking Regulation & NPA guidelines.

What is the application fee for the exam?

The application fee is ₹175 for candidates belonging to SC, ST, and PWBD categories, and ₹850 for all other categories (General, OBC, EWS).

Is there an interview stage after the online exam?

Yes, candidates who qualify in the single online examination based on the cutoffs will be called for a common interview. The relative weightage of the online exam and interview is 80:20 respectively.

100+ Free IBPS RRB CA Officer Scale II Practice Questions

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