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100+ Free IBP JAIBP Stage II Practice Questions

Institute of Bankers Pakistan — Junior Associateship of IBP (JAIBP) Stage II Examination practice questions are available now; exam metadata is being verified.

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IBP JAIBP Stage I Examination, Pakistan

Practice Questions
2026 Statistics

Key Facts: IBP JAIBP Stage II Exam

4 subjects

Compulsory Stage II papers in JAIBP

https://nibaf.sbp.org.pk/pdf/news/2025/WV%20-%20ISQ%20BROCHURE%20.pdf

100% MCQ

Stage I & II online objective exam pattern

https://nibaf.sbp.org.pk/pdf/news/2026/ISQ%20Spring%202026%20Examination%20Schedule.pdf

3 hours

Typical session length per Stage II subject

https://nibaf.sbp.org.pk/pdf/news/2026/ISQ%20Spring%202026%20Examination%20Schedule.pdf

50%

Minimum passing marks (objective)

https://nibaf.sbp.org.pk/pdf/news/2025/WV%20-%20ISQ%20BROCHURE%20.pdf

PKR 5,500

Stage-II exam & exemption fee per subject

https://nibaf.sbp.org.pk/pdf/news/2026/Summer%2026-%20ISQ%20BROCHURE.pdf

PKR 20,000

ISQ registration fee (one-time)

https://nibaf.sbp.org.pk/pdf/news/2025/WV%20-%20ISQ%20BROCHURE%20.pdf

JAIBP Stage II is examined as online 100% MCQ CBT papers across four compulsory subjects (accounting for financial services; lending products/operations/risk; HRM & OB; economics). Sessions run about 3 hours per subject with a minimum 50% pass mark. The ISQ Summer 2026 brochure lists Stage-II exam & exemption fees at PKR 5,500 per subject (registration fee separate).

Sample IBP JAIBP Stage II Practice Questions

Try these sample questions to test your IBP JAIBP Stage II exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the JAIBP Stage II Accounting for Financial Services syllabus, the fundamental accounting equation is:
A.Assets = Liabilities + Equity
B.Assets = Revenue − Expenses
C.Liabilities = Assets + Equity
D.Equity = Assets + Liabilities
Explanation: Double-entry bookkeeping rests on Assets = Liabilities + Equity. Bank financial statements and ledgers preserve this equality after every transaction.
2A customer deposits PKR 100,000 cash into a current account. The bank’s primary accounting effect is:
A.Debit customer deposit; credit interest expense
B.Debit cash/vault; credit customer deposit liability
C.Debit loans; credit share capital
D.Debit premises; credit retained earnings
Explanation: Customer deposits are liabilities of the bank. Receiving cash increases an asset (cash) and increases the deposit liability by the same amount.
3Which statement best describes the accruals (matching) concept for a bank?
A.Income and expenses are recognised when cash is received or paid only
B.Only capital expenditures may be accrued
C.Income and expenses are recognised in the period to which they relate, not merely when cash moves
D.Interest income is never accrued until maturity
Explanation: The accruals concept requires recognition of income and expenses in the accounting period to which they relate. Banks routinely accrue interest receivable and payable.
4Provision for expected credit losses on advances primarily affects which financial statement elements?
A.Increases assets and increases equity only
B.Increases cash and increases customer deposits
C.Increases share capital and reduces contingencies
D.Increases an expense (or impairment charge) and reduces the carrying amount of loans (via allowance)
Explanation: Creating a credit-loss provision (allowance) recognises an impairment expense and reduces net loans on the statement of financial position.
5A bank purchases office equipment for cash. The correct initial entry is:
A.Debit equipment (PPE); credit cash
B.Debit expense; credit share capital
C.Debit customer deposits; credit equipment
D.Debit cash; credit equipment
Explanation: Capitalising PPE increases a non-current asset and decreases cash. The debit is to equipment; the credit is to cash.
6Straight-line depreciation of bank premises over useful life with residual value is computed as:
A.Cost × Residual value ÷ Useful life
B.(Cost − Residual value) ÷ Useful life
C.Cost ÷ Residual value
D.Market value ÷ Number of branches
Explanation: Straight-line annual depreciation equals depreciable amount (cost less residual value) divided by useful life.
7Interest income on a performing term loan is typically recognised:
A.Only when the loan is fully repaid
B.As a capital receipt when sanctioned
C.Over the period the loan is outstanding using the effective interest (or contractual accrual) approach, subject to impairment rules
D.Only in the year the collateral is sold
Explanation: Banks recognise interest income over time as the loan is outstanding. Under IFRS 9 themes, effective interest is used, subject to credit-impaired treatment.
8Which item is ordinarily classified as a liability on a commercial bank’s statement of financial position?
A.Cash and balances with SBP
B.Advances (net of provisions)
C.Bank premises
D.Customer deposits
Explanation: Customer deposits represent amounts the bank owes depositors and are liabilities. Cash, advances, and premises are assets.
9A trial balance that does not agree most directly indicates:
A.That debit and credit totals are unequal, signalling recording/posting errors that must be investigated
B.That the bank is insolvent
C.That all adjusting entries have been correctly posted
D.That IFRS consolidation is complete
Explanation: An unbalanced trial balance means total debits do not equal total credits. It is an error-detection tool, not a solvency test.
10Bank reconciliation statements are prepared primarily to:
A.Compute Basel capital ratios
B.Reconcile the cash book balance with the bank statement balance and identify timing differences and errors
C.Approve new loan sanctions
D.Set the policy rate of the central bank
Explanation: A bank reconciliation explains differences between the entity’s cash book and the bank statement (uncleared cheques, deposits in transit, bank charges, errors).

About the IBP JAIBP Stage II Practice Questions

Verified exam format metadata for Institute of Bankers Pakistan — Junior Associateship of IBP (JAIBP) Stage II Examination is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.