Indian Railway Codes and Manuals-Accounts Code-Chapter-3 (III)
COMPILATION OF RAILWAY ACCOUNTS
301.
Introduction. – In regard to the compilation of Accounts the duties of the
Accounts Officers are ;- (i) to collect and bring to account all the receipts
and disbursements of the railway, department, division, etc., to which he is
attached,i.e , of his accounts circle; (ii) to transfer to other accounts
circles the items pertaining to them which originate in his circle and to
adjust in his books of account the items of expenditure or receipts pertaining
to his own circle and transferred to him by other Accounts officers; (iii) to
make up a detailed account of his accounts circle monthly; (iv) to make up a
detailed account of his circle for each year and (v) to prepare relevant
financial reports for management information and action. The various process by
which the receipts and disbursements of an accounts circle are collected and
brought to account are described in this and other departmental codes. Note: -
(1) The detailed procedure relating the settlement of “Remittance Transactions”
is laid down in chapter IV and V. (2) The compilation of monthly accounts is
dealt with in this chapter and the compilation of the annual accounts in
chapter VII.
302.
Accounting transactions fall under two distinct headings, viz., (I) cash
receipts and disbursements and (ii) book adjustments. The latter represent
transactions either initially accounted for by another Accounts Officer-as in
the case of transfer transactions – or adjustments between one accounting head
and another, e. g., for issue of stores from a Stores Depot for revenue
maintenance purposes etc. The initial record for a cash transaction will be a
cash voucher or bill. For book adjustment, it is a journal slip. Cash
transactions are rendered in the Cash book, while journal slips are entered in
the journal. (Paragraph 303 refers)
GENERAL BOOKS
AND SUBSIDIARY ACCOUNTS RECORDS
303.
General Books. – For the purpose of
collecting and bringing to account the transactions of his accounts circle and
for compiling the monthly and annual accounts, the Accounts Officer should
maintain certain essential records, which for brevity, are referred to in this
code as the “General Books” of the railway which comprises:-
(1)
The Daily Abstract of Cash Transactions or the General Cash book (Form No.
A-304).
(2)
The Monthly Classified Abstract of Cash Transactions or the General cash Book
(Form No. A-306).
(3)
The Journal (Form No. A-307).
(4)
The Ledger (Form No. A-310).
These
are explained in detail in the following paragraphs. Two sets of Journals and
Ledgers should be maintained, one set for revenue Accounts and the other for
capital Accounts, since separate accounts are maintained for these two classes
of transactions. Only one Daily Abstract and Monthly Abstract of Cash
Transactions need be maintained subsidiary to the Revenue Ledger. All cash
transactions of capital nature (C. f. 204), should accordingly be allocated in
the cash accounts of an open line to “Transfers, Railway Capital”, and the
detailed allocation to Final and Suspense heads of such transactions chargeable
to Capital”, D. R. F., D. F., A. C. F. and O. L. W. R., should be effected in
the Capital Account by means of journal entries in the Capital Books, a per
contra credit or debit being afforded to “Transfers, Railway entries in the Capital
Books, a per contra credit or debit being afforded to “Transfers, Railway
Revenue” (Vide Paragraph 404).
304.
Daily Abstract of Cash Transactions or the General Cash
Book:-This record is intended to bring to account all cash
transactions taking. Place in the circle of the Accounts Officer: -
(i)
It should be maintained in Form A-304 and posted daily as indicated in
paragraph 305.
(ii)
A voucher duly signed by an Accounts Officer should be forthcoming in support
of every entry in it.
(iii)
It should be balanced daily and the balance reconciled with that in the
Cashier’s Cash Book (A-1917).
(iv)
It should be checked and signed by the officer in-charge of the section. Form
A.
305.
Posting the General Cash Book (A-304) - The debit side of the General Cash Book
will represent all cash received and should be posted from the following. :-
(a)
In respect of station remittances from the Cash Check Sheets (A-1943).
(b)
In regard to cheques drawn on the Banks-from the Requisition for cheques (A-
1111) one entry being made for the total amount of cheques drawn on each Bank
for each day;
(c)
In regard to miscellaneous cash receipts-from the counterfoils of the cash
receipts granted. Separate entries should be made for each item of
miscellaneous cash receipts;
(d)
In regard to recoveries made from bills passed for payment-from the various
credit heads of account as abstracted in form A-1109.
(e)
In regard to unpaid amounts remitted by the Cashier-from lists of unpaid wages
(A-1957). The credit side of the Cash Book (A-304) will represent cash payments
and should be posted from the following :-
(a)
In regard to remittances to Bank-from Bank Remittance Receipts (A-1942); and
(b)
In regard to payments-from the various debit heads of account as abstracted in
Form A1109.
306.
The monthly classified Abstract of Cash Transactions or the General Cash
Abstract Book.-This record (Form A-306) should be posted daily from the totals
in the Daily Abstract of Cash Transactions (A-304). It should be kept in two
parts, one part for receipts (debits) and the other for disbursements
(credits). It should be totalled after the transactions of the last day of the
month have been posted. The totals under the heads “Remittance into Banks” and
“Cheques and Bills” should be reconciled with the statements received from
banks vide paragraph 432. Form A-306
307.
The Journal.-All transactions, which do
not involve the actual receipt or disbursement of cash, should be recorded in
the Journal (Form A-307). Each entry in the Journal should be supported by a
journal slip or voucher (form A-308) duly signed by an Accounts Officer.
308.
Journal Slips. - The Journal (A-307)
should be posted from Journal Slips, (Form A-308) or from the original vouchers
wherein should be endorsed the heads of accounts debited and credited as in a
Journal slip. Journal Slips or entries should be prepared by the concerned
section of the office and sent to the accounting or booking section for
incorporation in the accounts. The Journal Slips or entries should bear
separate series of numbers distinct from that for Cash vouchers. They should be
filed in such a way as to permit of ready reference to any particular vouchers
and to protect the voucher from being torn due to constant handling of the
files.
Note:-
Each Journal entry should be supported by a narration giving detailed reasons
for making the adjustment and full particulars of the connected vouchers.
309.
Totalling of the Journal.- Postings in the Journal (A-307) should be totaled up
in good time before the date fixed for the submission of the monthly accounts.
In the case of the Revenue Journal, the Cash Transactions of the month as
abstracted in the Cash Abstract Book (A-306) should be added at the foot in the
manner indicated in the form (A-307). The accuracy of posting the Journal
(A-307) should be proved by drawing up a "Trial Balance" from the
totals of debit and credit under each head of account in the Journal (A-307)
after adding up the figures of cash transactions. The totals of the Trial
Balance debits and credits should be compared and differences, if any, should
be located and set right.
310.
The Ledger.-The closing totals of the
journal should be posted in the Ledger (A- 310) the various heads of account so
that it records all receipts and charges of the accounting circle, under the
various heads of account, and also shows the progressive balances under those
heads, the end of each accounting period.
311.
Subsidiary Accounts Records.-In addition
to the General Books the following subsidiary records should be kept by each
accounting circle:- (i) Registers of Earnings (A-313). (ii) Revenue Allocation
Registers (A-312). (iii) Registers of Works (E-1473). (iv) Suspense Registers
(A-320). (v) Register of works expenditure classified under Capital,
Depreciation Reserve Fund, Development Fund, ''Revenue (Open Line
Works-Revenue)'' and Accident Compensation, Safety and Passenger Amenities
fund. Note: - Separate set of the above subsidiary registers should be
maintained to record the expenditure met from the contingency Fund. These
records are of the utmost importance in as much as they are designed to exhibit
the details of the transactions under Revenue, Capital, Depreciation Reserve
fund, Development fund, Revenue (Open line Works- Revenue,) Accident
Compensation, Safety and Passenger Amenities Fund, and Suspense Heads duly
analyzed under the prescribed detailed classification. These books should be
posted directly from the Vouchers or from an allocated abstract or summary
statement of a group of vouchers containing similar allocations immediately
after they (the vouchers) have been passed in accounts. In cases where an
allocated abstract (summary) is used for posting the subsidiary registers,
these will be filed along with the group of vouchers which have been summarized
therein. The rules relating to the maintenance of the Registers of Earnings and
Suspense Registers are laid down in paragraphs 313 to 321.
312.
Revenue Allocation Register.-The each
Abstract of Revenue Expenditure under the major heads 346 and 347-Indian
Railways-Working Expenses, as separate Allocation Register in Form A-312 should
be maintained. In these Registers, the transactions should be posted separately
for expenses, whether by cash payment or book adjustment, which are adjusted to
the final heads (a) directly, and (b) through Demands Payable.
313
Register of Earnings.- for each Abstract
of Revenue Earnings under the major head and 147 Indian Railways Revenue
Receipts, a separate register (A.313) should be maintained in the Accounts
Office. The Registers of Earnings should record the earnings of the Railway
under all the detailed heads of classification prescribed in Volume II of the
Indian Railway Financial Code. These registers may be kept in convenient parts
to facilitate application of statistics of earnings.
314
Suspense. Registers. - These registers
reflect transactions which cannot immediately be charged to final heads. Rules
relating to the maintenance of detailed registers for recording the
transactions pertaining to the suspense heads under "Stores" and
"Workshop manufacture Suspense" are laid down in the departmental
codes concerned. Rules relating to the maintenance of the following detailed
registers for the heads of account operated in accounting sections and offices
are prescribed in paragraphs 315 to 321. (i) Demands Payable Register. (ii)
Miscellaneous Advances Register. (iii) F. Loans and Advances Register. (iv)
Deposits Unpaid Wages Register. (v) Deposits miscellaneous Register.
315
Demands Payable Register.-Details in
support of the debit to the head "Demands Payable" in the General
Cash Abstract (A-306) should be recorded in a manuscript register (A-315) by
sub-major heads of revenue classification. Before closing the Revenue Accounts
for a month, the entries in this Register should be totalled up and the totals
reconciled with the General Cash Abstract Book on the one hand and the
"Cash totals" in the Revenue Allocation Registers on the other. A
journal slip should then be prepared crediting the head "Demands
Payable" and debiting the various Abstracts of the Revenue Accounts.
316
Deposits Unpaid Wages.-When bills are
returned by the Pay Office to the Accounts Office there may be some unpaid
items in them; the amount so unpaid will be returned by the Pay Office to the
Cash Office accompanied by a statement in Form A-1959 giving necessary
particulars. Of the items. The statements will be treated as cash vouchers to
be exhibited as such in the receipt side of the Daily Abstract of Cash
Transactions. The individual items of the statement will be trans cribbed into
an Unpaid Wages Register in Form A.316 (same as A. 1959). All items of unpaid
wages will, as a rule, be credited to "Deposit-Unpaid Wages" to be
operated under Part III – Public Account, K-Deposits and advances. (b) Deposit
not bearing interest, Major Heads – 8445. When a claim is subsequently received
for any sum remaining unpaid, the same will be verified with the unpaid wages
register and the fact of the subsequent payment of an amount will be noted
against the entry of the relevant item in the column provided for the purpose.
To obviate the possibility of a 2nd payment against the same item, this entry
should be recorded under the initials of an Accounts officer or a Section
officer (Accounts).
317
Where adequate arrangements exist which permit the unpaid wages statement (form
A1959) received from the Pay Office being filed separately, these files may be
used as the unpaid wages Register, thus obviating the maintenance of a separate
Register for the purpose. In such cases, the statements must be filed sheet by
sheet in a strong skeleton file, and the sheets numbered consecutively to
facilitate detection of any missing sheets at any time
318.
No pay order for payment from 'unpaid wages' should be drawn in the Accounts
Office in respect of items under three months old, until it has been
ascertained from the Pay Department that the amount has not already been
disbursed by Cashier out of this imprest or floating cash. Payments made by the
Cashier in respect of unpaid wages out of his imprest or floating cash should
be checked as usual and the necessary entries should be made against the
relevant items in the Unpaid Wages Register without delay.
319.
(a) The amounts credited to “Deposit unpaid Wages” in terms of para 316 and
remaining outstanding for want of payment on account of death of employees
concerned or on
(b)
The details of the adjustment as per sub-para (a) above should be advised in
Form VI of the notification (specimen enclosed) to the Chairman Staff Benefit
Fund Committee of the Zonal Railways/Units etc. concerned. The amounts
deposited with the Chairman S.B.E. under sub-para 319 (a) shall remain with the
Chairman of the Fund for four years.
(c)
As soon as possible, the Railway Administration will publish in any two
newspapers circulating in the language commonly understood in the area in which
the factory or the establishment in which the undisbursed wages earned is
situated and will exhibit them on notice board of the factory or establishment.
(d)
The Chairman Staff Benefit Fund Committee concerned shall release the money to
the nominee or to that person who has claimed to this money and which has been
decided by the competent authority/court. The amount deposited as above shall
be applied by the Chairman of the Staff Benefit Fund to meet the expenditure
for the purpose prescribed for Staff Benefit Fund.
(e)
The family member/dependent relative of employed person to make claims – the
spouse or children and where the employed person does not have spouse or
children, the dependent relative can make claims of the amount at any time with
seven years during which time the wages remain with the paymaster for a period
of first three years, as specified in rule (a) above and then credited to the
Staff Benefit Fund. In such cases, only the principal amount as remaining with
the paymaster or deposited by the paymaster with the Chairman Staff Benefit
Fund Committee shall be payable to the claimant.
320.
Other Suspense Registers .-Separate
registers for Miscellaneous Advances (Capital), Miscellaneous Advances
(Revenue), Loans and Advances to Government servants and Deposits Miscellaneous
should be maintained in Form A-320. All entries in these registers should be
posted in sufficient detail from the original documents. These registers should
be reviewed frequently by an Accounts Officer and the early clearance of all
items placed under suspense insisted upon. No item posted in a suspense
register should remain unadjusted longer than is absolutely necessary. It is
left to the Accounts Officer to decide whether these registers should be
maintained in one section of the office or in the various accounting sections. In
any case, a monthly reconciliation of the debits, credits and balances of these
accounts with the laid down in Chapter VI.
321
Deposits Miscellaneous – Unpaid items other
than unpaid wages of Railway staff amounting to more than Rs. 100 each should
be allowed to remain in the Register of Deposits of the Railway for a period of
three years, or until it is practically certain that no further claims for
payment will be made. The sums may then with the personal approval of the
Financial Adviser & Chief Accounts Officer be credited to the detailed head
“Miscellaneous receipts” or “Traffic Accounts” according as they relate to works
or Revenue transactions.
322.
Closing the General Books. – The compiled
accounts of a railway should, as a rule, be submitted so as to reach the
Railway Board on the 6th of the second month following that to which the
accounts relate. The accounts for the month of June, September and December
should be closed completely in all respects in the same manner in which
accounts for March are closed. The accounts for June, September and December
should be submitted so as to reach the Office of the Railway Board not later
than the 16th of August, November, and February respectively. The additional
time allowed for closing of accounts for these months should be utilised for
the complete reconciliation and final adjustment of outstanding transfer
transactions and other book adjustments. The accounts for the month of March
mat be submitted so as to reach the Board by the 31st July, or an earlier date
as fixed by the Railway Board. The General Books of the Railway should,
therefore, be closed every month in good time for the compilation of the
Monthly/Annual Accounts. The various subsidiary registers should be totalled up
and reconciled with the General Books within a week of the submission of the
Accounts. The certificate of reconciliation should be recorded each month in
the subsidiary registers under the signature of an Accounts Officer.
ACCOUNTS CURRENT
323.
Compilation of Capital and Revenue Accounts Current.-
After the General Books for a month have been closed and the Ledger (A-310) has
been written up, the monthly Accounts Current (see next para) should be
prepared, separately for Capital and Revenue transactions from the Ledger and
submitted to the Railway Board together with the prescribed supporting
schedules. A separate Accounts Current should be prepared for expenditure of a
New Construction when the accounts are maintained by a separate accounts
organization. When the accounts of expenditure on Construction are maintained
by the Financial Adviser and Chief Accounts Officer of an Open Line
Administration, separate Accounts Current is not necessary, but separate
Schedules of expenditure on such Constructions should be prepared (see para
330). The monthly accounts of the Divisions/Workshops should be submitted by
the Divisional/Workshop Accounts Officer to the Financial Adviser and Chief
Accounts Officer by the last day of the following month or on such other day,
as may be fixed by him so as to enable him to compile the accounts of the
entire railway and submit them in time to the Railway Board. When, in exceptional
cases, the accounts cannot, in due course, be sent so as to reach the Railway
Board on the prescribed date, the fact should be reported immediately to the
Board with an explanation of the cause of the delay stating when the accounts
may be expected.
324.
Accounts Current. –An Account Current is
simply a statement showing the receipts and disbursements of an accounts
circle, duly classified under the prescribed heads of account (see Appendices
XI and XII). The principle on which the Account Current is prepared is that all
entries should be shown net, i. e., after deduction of the write back
adjustments, against each head of account. On no account should minus results
be transferred as plus result to the opposite side of the account. The column
“account to date” in the Accounts Current forms should show the transactions
from the beginning of the official year, the each balances should be opening
balance of the year and the closing balance of the month to which the account
refers.
325
Revenue Account Current.-The monthly
Revenue Account Current should be prepared as in Appendix XI. The prior
approval of the Railway Board is necessary for the omission or addition of a
major or a minor head in this form. Railway administrations may, however,
introduce sub and detailed head in this form Railway administrations may,
however, introduce sub and detailed heads to meet local requirements.
326.
The monthly Revenue Account Current should be accompanied by the schedules
listed in the form (Appendix XI) in support of the transactions shown against
the various heads in the account current. Note – Separate schedules should be
prepared and submitted for expenditure in Part II “Contingency Fund”.
327.
Forms of Schedules.- The schedules should be in Form A-327 and should exhibit
the transactions under each head by the prescribed sub-major heads (vide
Appendix IV) and by such other details as may be required by the Railway Board.
In the case of the schedules of debits and credits to Transfers Railway, two
separate schedules, one for debits and the other for credits, showing the
analysis by railways, should be prepared.
328.
Statement of Transactions .- In order that
a proper reconciliation may be effected, in the office of the Railway Board, of
the transactions of the various railways under the head “Transfers Railway”,
statements in Form A-328 should be prepared and submitted with the monthly
Revenue Account Current (Appendix XI). The figures shown in these statements
should be the sum total of the adjustments made both in Capital, Revenue and
Construction Accounts.
329.
Capital Account Current. –The monthly
Capital Account Current of Open Lines and of New Constructions should be
prepared as in Appendix XII. The rule laid down in paragraph 325 is equally
applicable to this form.
330.
Capital Account schedules.-The monthly Capital Account Current should be
accompanied by the following schedules in support of the transactions shown
against the various heads in the account current. All the schedules, with the
exception of the Schedules of Expenditure under 5002 and 5003 Capital Outlay on
Indian Railways (see next paragraph), should be prepared in Form A. 327 in
accordance with the instructions in paragraph 327. Schedules to accompany the
Capital and New Construction Accounts:- 1. Schedule of credits and debits to
Transfer Railways. 2. Schedule of Deposits with “Reserve Bank”. 3. Schedule of
expenditure under 5002 Capital Outlay on Indian Railways- Commercial. 4.
Schedule of expenditure under 5003 Capital Outlay on Indian Railways- Strategic.
5. Schedule of Expenditure on New Construction Accounts which are maintained by
the Financial Adviser and Chief Accounts Officer of an Open Line Railway
separately for each construction with a summary there of. 6. Schedule of
Receipt and Expenditure-Deposits of Branch Line Companies. 7. Schedule of
Expenditure of preparation period Note (1) (2) Separate schedules shall be
prepared and submitted for expenditure under. Part II-Contingency Fund . The
schedule referred to in item 1 above should be submitted with the Capital
Account of New Constructions only where such Accounts are kept separately from
Open Line Accounts. 331. Schedule of Expenditure under 5002 and 5003. - Capital
Outlay on Indian Railway for the first eleven months should show expenditure
for the current financial year. This should be in Form A.
331.
The schedule for the month of March should show cumulative Expenditure since
commencement of operation in Form A. 331- A Separate schedules should be
prepared for the transactions under the head "5002- Capital Outlay on
Indian Railway - Commercial" and "5003- Capital Outlay on Indian
Railways-Strategic" along with a summary of transactions under both these
heads. In the case of new lines under construction a separate schedule should
be submitted for each line. The details under the Suspense heads in Form A.
331-B should be appended to these schedules.
332.
Annual Closing Of Books. – The books
relating to the financial year should, in every case, be closed by the 28th
July following or by on earlier date as fixed by the Railway Board.
333.
The accounts of a year are kept open after the close of the year so that, as
far as possible all the transactions of the year may be included therein. For
any expenditure actually incurred but bills for which are not accepted or
accounted for by the executive, provisional adjustments should be carried out
on the basis of readily available allocation. Such provisional adjustments
should be noted down in a manuscript register for prompt regularization. It is not
essential that transactions relating to earlier years should be booked in the
accounts of the latest year which are still open. If it is impossible to have
any expenditure booked in the accounts of the year to which it relates owing to
the fact that the actual incidence of the expenditure is under dispute, it
ought to be charged to the accounts of the year in which the final decision is
taken, though at the same time, efforts should be made to expedite the decision
as far as possible. Adjustments should not be made in the accounts of the past
year if the disbursements could not have been reasonably anticipated in time
for a grant being obtained from the proper authority. In all cases, where the
expenditure, could have reasonably been anticipated as for example, recurring
payment to a State or Department of the Central Government and payments which,
though not of fixed amount, are of a fixed character, etc., the Accounts
Officer should make the adjustment in the accounts before they are finally
closed.
334.
When demands (original or supplementary) for appropriation of the necessary
amounts for the expenditure are placed before the Parliament, suitable
provision should always be made for anticipated liabilities and the provision
in paragraph 333 that adjustment should not be made in the previous year’s
accounts in certain circumstances should not be used to cover the results of
defective budgeting. The onus of proving that the disbursements could not have
reasonably been anticipated should lie on the Controlling Officer.
335.
Final Accounts Current. – After the books
for a financial year are closed, Final Accounts Current of the Capital and
Revenue transactions of the railway should be prepared and submitted to the
Railway board so as to reach them not later than the 30th August following.
These Accounts Current are intended to show the transactions of the railway for
the year under the various final heads of account and the opening and closing
balances under the suspense and debt heads.
336.
Final Revenue Accounts Current. – The
Final Revenue Accounts Current should be prepared as in Appendix XIII.
337.
Final Capital Account Current. – The final
Capital Account Current should be prepared as in Appendix XIV.
338.
Consolidation of Accounts Current. – On
Railways, where the Accounts Officers subordinate to the Financial Adviser and
Chief Accounts Officer submit compiled accounts to the head office, the
Accounts Current (whether monthly or final) submitted by them should be
consolidated into one Account Current for the entire railway. Similarly, the
Accounts Current of Constructions should be consolidated so that one Account
Current for Constructions may be prepared. The process by which the various
Accounts Current are consolidated are outlined in the succeeding paragraphs.
339.
Sub-Register of Account Current. – A
register in Form A.339 should be maintained for consolidating the receipts and
charges in the various Accounts Current. This register should be posted direct
from the Accounts Current and the totals struck. Figures “to end of the month”
should be worked out by adding the month’s figures to those brought out to end
of the previous month. The Account Current for the entire railway or of
Constructions should be prepared from this register. (The ledger A.310)
maintained in the Central Accounts Office of the railway should also be posted
from this register.
340.
Sub-Register of Schedules.-For the purpose of preparing consolidated schedules
in support of the consolidated Account Current a subsidiary register in Form A.
340. Should be maintained. In it, separate pages should be allotted for each
head of account for which schedules are prepared. Alternatively, a separate
register may be maintained for each head of account. Form A-340
341.
Consolidation in the Office of the Railway Board.-The Accounts Current
submitted by the various railways are consolidated in the office of the Railway
Board and a statement of Receipts and Charges is prepared and submitted to the
Finance ministry of the Central government to enable that Ministry to control
the "Ways & Means" arrangements of the Government.
342.
Approximate Account Current.-A statement of receipts and expenditure for each
month and from the commencement of the financial year to the end of the month
under such heads, as may be prescribed, should be sent to the Railway Board in
Form Appendix XV so as to reach them not later than the 15th of the month
following that to which the figures relate. The approximate Account Current for
the months of July, October and January may however reach them not later than
20th of the month following that to which figures relate. The Approximate
Account current for March should, reach the Railway Board's office by 3rd May.
The information should be posted by Air Mail by name to the officer incharge of
the Accounts Branch of the Board's office. If, in any case, the statements
cannot be sent on the due date by post, the information contained therein
should be telegraphed to the Railway Board, the Code words indicated in
Appendix XV being used for the purpose.
343.
The approximate Account Current Appendix XV should be accompanied by the
following statements :- (i) Statements comparing the approximate gross receipts
and revenue expenditure with the actual of the corresponding period of the
previous year together with brief explanations for the variations. (ii)
Statement showing Approximate Railway Receipts and Disbursements. (iii) Credits
booked in reduction of expenditure under Capital and Revenue by demands.
344.
Statement of Approximate Receipts and Revenue Expenditure. – This statement
should be prepared in Form A. 344. And should be accompanied by explanations
for the variations brought out in the statement. If it is not possible to send
the explanations with the statement, they may be sent separately within six
days of the dates specified in paragraph 342 for the despatch of the statement.
Note-
Explanations for variations will be submitted for the months of July, October,
November, February and March every year.
345.
Statement showing Approximate Railway Receipts and Disbursements.-this
statement should be prepared in Form A.345. Form A-345
346.
Statement showing he credits in the net expenditure shown in the approximate
Account Current.-This statement should be prepared in Form A- 346. Form A-346.
347.
Consolidation in the office of the Railway Board.-The Approximate Account
Current received from the various railways are consolidated in the Accounts
Branch of the Railway Board and one Approximate Accounts Current is prepared
for the Railway Ministry. This Account Current is sent to the Finance ministry
for use in the consideration of "Ways & Means" of the Central
Government. From the statement of Gross Receipts and Revenue received from the
various Railways, a consolidated statement for the entire Railway Ministry is
prepared for the information of the Railway board.
Multiple choice questions:
1. What are the main duties of the Accounts Officer in
regard to the compilation of Accounts?
- a)
To audit all the financial transactions of the railway.
- b)
To collect and bring to account all receipts and disbursements of the
railway, department, division, etc., to which he is attached.
- c)
To prepare detailed reports for external auditors.
- d)
To approve all financial transactions without exceptions.
Answer: b
2. According to
Paragraph 302, accounting transactions fall under which two distinct headings?
- a)
Revenue and Expenditure
- b)
Capital and Revenue
- c)
Cash Receipts and Disbursements and Book Adjustments
- d)
Assets and Liabilities
Answer: c
3. Which form is used for the Daily Abstract of Cash
Transactions or the General Cash Book?
- a)
A-304
- b)
A-306
- c)
A-307
- d)
A-310
Answer: a
4. How should cash
transactions be recorded according to Paragraph 304?
- a)
In the General Ledger
- b)
In the Cashier’s Cash Book (A-1917)
- c)
In the Daily Abstract of Cash Transactions (Form A-304)
- d)
In the Journal (Form A-307)
Answer: c
5.What is the purpose of the Journal (Form A-307)?
- a)
To record all cash transactions
- b)
To record all transactions that do not involve the actual receipt or
disbursement of cash
- c)
To maintain the payroll details
- d)
To compile the monthly accounts
Answer: b
6.Which of the following is NOT a General Book that should
be maintained by the Accounts Officer?
- a)
The Daily Abstract of Cash Transactions
- b)
The Monthly Classified Abstract of Cash Transactions
- c)
The Journal
- d)
The Payroll Register
Answer: d
7. How often should the General Cash Book (A-304) be
balanced and reconciled with the Cashier’s Cash Book (A-1917)?
- a)
Monthly
- b)
Weekly
- c)
Daily
- d)
Quarterly
Answer: c
8. The Monthly Classified Abstract of Cash Transactions
should be kept in how many parts?
- a)
One part
- b)
Two parts
- c)
Three parts
- d)
Four parts
Answer: b
9.Which form should be used for the Journal Slips?
- a)
A-304
- b)
A-306
- c)
A-308
- d)
A-310
Answer: c
10. For how many years should unpaid wages be allowed to
remain in the Register of Deposits of the Railway before being credited to
"Miscellaneous receipts" or "Traffic Accounts"?
- a)
One year
- b)
Two years
- c)
Three years
- d)
Four years
Answer: c
11.The Revenue Allocation Register is maintained under which
major heads of revenue classification?
- a)
346 and 347
- b)
144 and 147
- c)
204 and 207
- d)
311 and 312
Answer: a
12.What is the form number for the Register of Earnings?
- a)
A-304
- b)
A-306
- c)
A-313
- d)
A-320
Answer: c
13.Where should details in support of the debit to the head
"Demands Payable" be recorded?
- a)
In the Daily Abstract of Cash Transactions
- b)
In the Demands Payable Register (A-315)
- c)
In the Journal (A-307)
- d)
In the Cashier’s Cash Book (A-1917)
Answer: b
14.What is the purpose of the Staff Benefit Fund Committee
in relation to unpaid wages?
- a)
To invest the unpaid wages in railway projects
- b)
To hold and release unpaid wages to claimants as decided by the competent
authority/court
- c)
To distribute unpaid wages among current employees
- d)
To use unpaid wages for railway maintenance
Answer: b
15.What should be done with unpaid wages remaining outstanding
due to the death of employees or other reasons?
- a)
Transferred to a suspense account indefinitely
- b)
Credited to "Miscellaneous receipts" immediately
- c)
Deposited with the Chairman Staff Benefit Fund Committee for four years
- d)
Returned to the government treasury
Answer: c
16. What is the primary purpose of an
Accounts Current (as per paragraph 324)?
a) To track employee attendance
b) To show a breakdown of receipts and disbursements KEY
c) To manage inventory levels
d) To record passenger information
17.
According to paragraph 325, who has the authority to approve changes to the
format of the Monthly Revenue Account Current?
a) The Divisional/Workshop Accounts Officer
b) Local Railway Administrations
c) The Financial Adviser and Chief Accounts Officer KEY
d) The Railway Board
18. Based on
paragraph 326, what document accompanies the monthly Revenue Account Current to
support the transactions?
a) Capital Account Current (Appendix XII)
b) Separate Schedules (listed in Appendix XI) KEY
c) Statement of Transactions (Form A-328)
d) Approximate Account Current (Appendix XV)
19. By what
date at the latest should the monthly accounts of Divisions/Workshops be
submitted to the Financial Adviser and Chief Accounts Officer (as per paragraph
323)?
a) As fixed by the Divisional/Workshop Accounts Officer
b) By the 15th of the following month
c) By the last day of the following month or another designated day KEY
d) Within a week of the month's end
20. What is
the key principle for preparing entries in an Account Current according to
paragraph 324?
a) Include minus results as positive values on the opposite side.
b) Show all entries with write-back adjustments included.
c) Present entries in chronological order. KEY
d) Deduct write-back adjustments before showing
each transaction.
21. As per
paragraph 329, how should the monthly Capital Account Current be prepared?
a) In accordance with Appendix XIII
b) Following the same format as the Revenue Account Current (Appendix XI) KEY
c) Using a custom format approved by the Financial Adviser
d) There is no specific format requirement.
22. Which of
the following statements about Schedules of Expenditure under 5002 and 5003
(Capital Outlay on Indian Railways) is TRUE according to paragraph 331?
a) They should be prepared in Form A-328.
b) They are not required for the first eleven months.
c) They show cumulative expenditure since the beginning of operation for March. KEY
d) They are identical for Commercial and
Strategic categories.
23. What
document (mentioned in paragraph 330) provides a summary of transactions under
the heads "5002" and "5003"?
a) Statement of Transactions (Form A-328)
b) Separate schedules for each head KEY
c) Capital Account Current (Appendix XII)
d) Schedules of Expenditure under 5002 and 5003
24. In which
scenario would a separate Accounts Current be prepared for expenditure of a New
Construction (as per paragraph 323)?
a) When the accounts are maintained by the same organization as Open Lines.
b) When the Financial Adviser handles expenditure on Construction. KEY
c) Separate Accounts Current are never required for New Construction.
d) There is no distinction between Open Lines and
New Construction.
25. What is
the consequence of not submitting the accounts to the Railway Board by the
prescribed date (as implied in paragraph 323)?
a) No penalty is incurred.
b) The accounts may be rejected.
c) An explanation for the delay must be reported immediately. KEY
d) The Financial Adviser is automatically notified.
26. By what date at the latest should the financial year
books be closed according to paragraph 332?
a) 15th of August
b) 28th of July KEY
c) As decided by the Accounts Officer
d) 30th of September
27. What is the purpose of keeping accounts open after the
financial year closes (as per paragraph 333)?
a) To record transactions from previous years.
b) To include all possible transactions for the closing
year. KEY
c) To allow for adjustments to past year expenditures.
d) To facilitate budget planning for the next year.
28. According to paragraph 333, when can provisional
adjustments be made to the accounts?
a) Whenever a disbursement cannot be reasonably anticipated.
b) Only for recurring payments to the government.
c) When bills are not accepted or accounted for by the
executive. KEY
d) In situations where the final decision on expenditure is
disputed.
29. Based on paragraph 334, who is responsible for
demonstrating that a disbursement could not have been reasonably anticipated
for budgeting purposes?
a) The Accounts Officer
b) The Railway Board
c) The Finance Ministry KEY
d) The Department incurring the expenditure
30. What is the deadline for submitting Final Accounts
Current to the Railway Board after the financial year closes (paragraph 335)?
a) 15th of September
b) 28th of July
c) 30th of August KEY
d) As specified by the Railway Board
31. Which of the following statements about Final Accounts
Current is TRUE according to the passage?
a) They are prepared in the same format for both Revenue and
Capital transactions.
b) They detail the railway's transactions for the year under
various account heads. KEY
c) They are submitted monthly to the Railway Board.
d) They only show the opening and closing balances.
32. What is the primary function of the Sub-Register of
Account Current (Form A.339) as mentioned in paragraph 339?
a) To record explanations for variations in the Approximate
Account Current.
b) To consolidate receipts and charges from various Accounts
Current. KEY
c) To maintain separate pages for each head of account with
schedules.
d) To prepare statements comparing revenue and expenditure
with the previous year.
33.According to paragraph 342, by what date should the
Approximate Account Current typically reach the Railway Board?
a) By the 3rd of May (applicable only to March)
b) By the 15th of the following month (except July, October,
January) KEY
c) By the 20th of the following month (applicable to July,
October, January)
d) Within a week of the month's end
34.What document (mentioned in paragraph 343) accompanies
the Approximate Account Current to explain variations in gross receipts and
revenue expenditure?
a) Statement showing Approximate Railway Receipts and
Disbursements (Form A.345)
b) Statement showing credits in net expenditure (Form A.346)
c) Statement of Approximate Receipts and Revenue Expenditure
(Form A.344) KEY
d) Schedules of Expenditure under 5002 and 5003
35.What is the ultimate destination of the consolidated
Approximate Account Current prepared by the Railway Board (paragraph 347)?
a) The Accounts Officers of subordinate railways
b) The Divisions/Workshops of the railway
c) The Finance Ministry of the Central Government KEY
d) The departments incurring the expenditures.
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