Indian Railway Codes and Manuals-Accounts Code-Chapter-7 (VII)

CHAPTER VII

ANNUAL ACCOUNTS AND RETURNS

701. Introductory.-After the books for a financial year have been closed and after the final accounts current have been submitted, the following accounts and return should be compiled:-

(a) The Capital and Revenue Accounts (Section II of the Annual ReportFinancial Statements).

(b) The Finance Accounts.

(c) The Debt Head Report.

(d) Statement of Voted ad Charged Expenditure.

(e) Appropriation accounts and connected Returns.

This Chapter deals with the first four items only; for the fifth, Chapter IV of the Indian Railway Financial code should be seen.

A.CAPITAL AND REVENUE ACCOUNTS

702. Capital and Revenue Accounts.-the Capital and Revenue Accounts which are intended to facilitate a review of the finances of the railway as a Commercial undertaking comprise the following statements of accounts which should be prepared, as regards Capital expenditure from the ledger (A. 310) and Register of Capital, Depreciation Reserve Fund, Development Fund, Accident compensation, Safety and Passenger Amenities Fund, and Revenue (open line works Revenue) Expenditure (E 1480) as regards revenue expenditure from the Revenue Allocation Registers (A. 312) and as regards earnings from the Registers of Earnings (A. 313). The forms prescribed in the following paragraphs for the various statements of accounts are intended to serve only as models; they may be amplified if local conditions necessitate additions. Fifteen printed copies of the Capital and Revenue Accounts should be submitted so as to reach the Railway ministry not later than the 15th September each year.

STATEMENT OF ACCOUNTS INCLUDED IN THE CAPITAL AND REVENUE ACCOUNTS

(i)                 Statement of Capital authorised.

(ii)               Statement of Stock and Share Capital created, showing the proportion received.

(iii)             Statement of Capital raised by loans, debentures and Debenture Stock.

(iv)             Statement of Receipts and Expenditure on Capital Account.

(v)               Statement showing Details of Capital. Expenditure for the year.

(vi)             Statement showing estimate of further. Expenditure on Capital Account.

(vii)           Capital powers and other Assets available to meet further expenditure.

(viii)         Capital account.

(ix)             Revenue account for the year.

(x)               Statement showing the distribution of earnings and working expenses of worked lines.

(xi)             Summary of working expenses for the year.

(xii)           Detailed accounts of Revenue working Expenses.

(xiii)         Detailed accounts of Revenue Earnings.

(xiv)         Statement of outstanding earnings for the year.

(xv)           Net Revenue Account for the year.

(xvi)         Account of total New Receipts.

(xvii)       Dividend Account. (A) Statement showing capital-at-Charge and calculation of Dividend payable to general Revenues for the year. (B) Statement showing details of subsidy received from General Revenues.

(xviii)     Depreciation Reserve Fund Account (A) Pension fund Account (B) Accident compensation, Safety and Passenger Amenities Fund Account.

(xix)         Statement of Expenditure under major Head 345 Policy Formulation, Direction Research & other Miscellaneous Organizations.

(xx)           Statement of Expenditure charged to Development Fund. (xxi)

(xxi)         Statement of Expenditure charged to Revenue (open line works revenue) (xxii)

(xxii)       Statement of Expenditure charged to Accident Compensation, Safety and Passenger amenities Fund.

(xxiii)     Statement of Expenditure charged to Depreciation Reserve Fund,

          Note.-The accounts of the worked (lines paras 704, 705, 706 and 709) need not be printed and sent to the Railway Ministry. These should be compiled by the Railway Administrations, tendered to Audit for check and preserved for a period of ten years so that these may be available for use in Railway ministry as and when necessary.

703. Statement No. I-Capital Authorized.-This statement should be in the following form:-

704. Statement No. II-Stock and Share Capital created showing the proportion received.- this is only for the worked lines and should be in the following form:-

705. Statement No. III-Capital raised by Loans, Debentures and Debenture Stock.- This Statement is also for worked lines and should be in the form given below:-

706. Statement No. IV-Receipts and Expenditure on Capital Account.-This statement should be prepared only for worked lines. It should be in Form A. 706.

707. Statement No. V-Details of Capital Expenditure.-This statement should be in form a.707. in this statement the expenditure for the year would be shown and it should be shown separately for lines open for traffic and for lines in the course of construction. The figures in this statement should tally with those shown in schedule "C" of Finance Account. The nature of all credit entries-due to adjustment of account should invariably be explained in foot-notes.

708. Statement No. VI-Estimates of further expenditure on Capital Account.- This statement should be in Form A-708, and should show the expenditure by minor heads of Account, separately, on lines opened for traffic more than five years, on lines opened for traffic not more than five years and on lines in the course of construction. In preparing this statement, the following instructions should be noted:--

(a) As long as the sanctioned Construction Estimate (E-553) of a Railway remains in force, the "further expenditure" on Capital account to be entered in form A708 should represent the represent the unexpended balance of that estimate, the amount being divided between expenditure "during the following year" and "in subsequent years" as provided in the form. (b) When the construction Estimate (E-553) is closed and outlay is being passed against a Completion Estimate (E-713), the "further expenditure," should agree with the unexpended balance of the cost of works provided for in the Completion Estimate (E-713).

(c) After the sanction of the Completion Reports (E-1706), the column for "further expenditure in subsequent years" may be left blank.

(d) The cause of any great difference between the current estimate and that which preceded it should be fully explained in a foot-note. Form A-708

709. Statement No. VII-Capital, Powers and other Assets available to meet further expenditure .-This statement should be prepared only for worked lines and should be in Form A. 709.

710. Statement no. VIII-Capital Account.-This account should show capital transactions from the commencement of operations to the end of the year and should be prepared in Form A. 710.

711. Statement No. IX-Revenue Account. -This account should be in Form A. 711.

712. Statement No. X.-Distribution of the actual Earnings and proportionate shares of working expenses of the various lines comprising the railway system.-This statement should be in the Form A. 712.

713. Statement No. XI-Summary of working Expenses.-This statement should show expenditure under each Demand, Primary Unit wise. This should be in form A713.

714. Statement No. XII-Detailed Accounts of Revenue Working Expenses.- This statement should be in Form A-714 and should show the working expenses duly analysed under the detailed heads of classification provided for Revenue Working Expenses (appendix I to the Indian Railway Financial Code). A separate statement should be prepared for each Abstract of Revenue Working Expenses.

715. Statement No. XIII.-Detailed Accounts of Revenue Earnings.-this statement should be in form A-715 and should show the earnings. Duly analysed under the various heads of detailed classifications provided for revenue earnings (Appendix III to the Indian Railway Financial Code).

A separate statement should be prepared for each Abstract of "Earnings"

716. Statement No. XIV-Statement of Outstanding Earnings. -this statement should be in Form A-716

717. Statement No. XV.—This should be in Form A. 717.

718. Statement No. XVI-Account of total Net Receipts.-This should be prepared in form A. 718.

719. Statement No. XVII-Dividend Account.-this statement should be prepared in Form A. 719.

720. Statement No. XVII.-Depreciation Reserve Fund, Pension Fund, and Accident Compensation, Safety and Passenger Amenities Fund Account.- This statement should be prepared in Forms No. A-720A, A0720 B. and A- 720 C.

721. Statement No. XIX.-Expenditure under 345-Indian Railway Policy Formulation, Direction, Research and other Miscellaneous Organisations .- Commercial Lines/Strategic Lines. This statement should be prepared in Form A- 721

722. Statement No. XX-Expenditure charged to Development Fund.-The statement should be prepared in Form A-722.

723. Statement No. XXI.-Expenditure charged to Revenue (open line Works Revenue).- This statement should be prepared in Para A. 723.

724. Statement No. XXII-Expenditure charged to-Accident compensation Safety and passenger Amenities fund.-this statement should be prepared in Form A. 724.

725. Statement No. XXIII-Expenditure charged to Depreciation Reserve Fund.-The statement should be prepared in Form A. 725

726. Supplementary Accounts.- The accounts pertaining to Capital expenditure and Revenue earnings and Working expenses of the Northern Railway and Northeast Frontier Railway system which are composed of both commercial and strategic lines should be analysed to exhibit figures separately under "Commercial" and ‘Strategic". This may be done either in the Capital and Revenue Accounts themselves or in separate Subsidiary statements. The latter course in recommended as it is comparatively convenient. The subsidiary statement of accounts may collectively be termed the Supplementary (capital and Revenue) Accounts.

727. Certificates.-the following certificates should be appended to the Capital and Revenue Accounts (Section II of Annual Report). The Audit Certificate will be signed by the Audit Officer and the other certificates by the heads of departments concerned and the head of the railway. The last two certificates will, in addition, be countersigned by the Commissioner of Railway Safety.

B FINANCE ACCOUNTS

728. Definition, Scope And Date of submission.-The Finance Accounts are compiled in accordance with the requirements of Government Accounts, duly classified in accordance with the heads of accounts prescribed for Government accounting (see Appendix IV). The transactions brought to account in the books of the railway under the various railway heads of account are, after the closing of accounts for each financial year, summarised in the form of a handy compilation called the 'Finance Accounts". The compilation comprises (I) Abstract accounts of the various railway heads together with detailed schedules, and (ii) Appendices. Six printed copies of the compilation should be submitted so as to reach the Railway Ministry not later than the 20th September. If printed copies cannot be dispatched by the prescribed by the prescribed date. A manuscript copy should be sent in time.

729. Abstract Accounts.-The Abstract accounts should show in Form A. 729 the booked actuals by major and minor heads of accounts for the year concerned in juxtaposition with those for the previous year.

730. The Schedules.-The Abstract Accounts (a-729) should generally be supported by detailed accounts in the following schedules. If further details are found desirable they may be given in additional schedules or in statements subsidiary to the main schedules. Schedules prepared in support of the Abstract Accounts:-

(1) Schedule A-Detailed Account of expenditure under subsidized companies.

(2) Schedule B-Detailed Account of expenditure under 345-policy formulation, Direction, Research and other miscellaneous organisations.

(3) Schedule C-Detailed Account of Capital Expenditure on Construction of Railways outside the Revenue Accounts.

(4) Schedule D-Detailed Account of expenditure on Construction of Railways, charged against State governments and Corporate Body's capital.

(5) Schedule E-balances in the books of the Railway.

(6) Schedule F-Account of expenditure under Major head 5002-5003 met from Development Fund.

(7) Schedule G-Account of expenditure under major head 5002/5003 transferred to Major head 348 "Revenue (Open Line works) Revenue.

(8) Schedule H-Expenditure charged to final heads met from Contingency Fund.

(9) Schedule J-Account of expenditure under Major head 5002/5003 met from Depreciation Reserve Fund.

(10) Schedule K-Account of expenditure under major head 5002/5003 met from Accident Compensation Safety, and passenger Amenities fund.

731. Schedule A.-this schedule should be prepared in Form A.-731.

732. Schedule B-Detailed Account of Expenditure 345 Indian Railway policy, formulation, Direction, Research and Miscellaneous Organisations Commercial/Strategic.-This schedule should show the expenditure booked under the Major Heads 345 Indian Railway Policy Formulation. Direction, Research and Miscellaneous Organisations, Commercial/Strategic, during the year and to end of the year. It should be prepared in form A. 732.

733. Detailed Account of Closed Surveys.-A statement of surveys the accounts of which have been closed should be prepared on Form A. 733. And appended to Schedule B, in support of the figure shown against the item “Closed Accounts of Survey.”

734. Schedule C-Detailed Accounts of Capital and other Works Expenditure outside the Revenue Accounts,-This schedule should shown the outlay booked under the major Head 546/547 Capital Outlay on Indian Railways Commercial Lines/Strategic lines during the year and to end of the year, separately for the open line and for lines under construction the accounts of which have not been closed. The schedule for Capital expenditure should be prepared in Form A. 734 on the basis of the Concordance List of old and revised classification under Capital. The schedule of Depreciation Reserve Fund, Development Fund, Accident Compensation Safety and passenger Amenities Fund and Revenue (Open Line Works Revenue) should be prepared in Form A, 734-A.

735. Schedule D-Detailed Account of Expenditure on construction of Railways charged against State governments and Corporate body's capital.-This schedule, form A.735 should show the capital outlay "during the year" and "to end of the year" on each of such lines whether open to traffic or under construction. This schedule is required for worked lines (Form A. 735 is identical to Form A. 734).

736. Schedule E-Schedule of Balances.-This schedule should exhibit the balances in the Accounts Officer's book at the end of the year to which the Finance Accounts relate and the increase or decrease during the year. It should be prepared in Form A.736. A certificate regarding the internal check of suspense balances by the Financial Adviser and Chief Accounts officers should, as shown in the form, be furnished on this schedule. The certificate of correctness of the Finance Accounts as a whole buy the Statutory Audit (see paragraph 747) may also be appended to this schedule.

737. Schedule F-Account of Expenditure under Major head 5002/5003 met from Development Fund.-This schedule should show the expenditure during the year and to end of the year by minor heads (plan heads) of classification. It should be prepared in Form A. 737.

738. Schedule G.—Account of Expenditure under Major head 5002/5003 transferred to Major head 348 Revenue (Open Line Works Revenue).—This schedule should show the expenditure during the year and to end of the year by minor (Plan heads) of classification. It should be prepared in Form A.738

739. Schedule H-Schedule of expenditure from the Contingency Fund.-The detail of expenditure recorded under final heads met from the Contingency Fund and not reimbursed during the year should be shown in this schedule which should be submitted in the following form A. 739

740. Schedule J-Amount of Expenditure under major head 5002/5003 met from Depreciation Reserve Fund.-This schedule should show the expenditure during the year and to end of the year by minor heads (Plant heads) of classification. It should be prepared in Form A. 740

741. Schedule K-Account of Expenditure under Major head 5002/5003 met from Accident Compensation, Safety and passenger Amenities Fund.-This schedule should show the expenditure during the year and to end of the year by minor heads (plant heads) of classification. It should be prepared in Form A. 741.

742. Appendices to Finance Accounts.-The following are the appendices to the Finance Accounts:- Appendix A. -Statement of indirect charges relating to the Capital and Revenue Accounts. Appendix B. –Statements of works undertaken on behalf of the Defence ministry on which interest and maintenance charges are leviable. The appendices are intended o give information, which the compiled accounts do not reveal, but which is necessary for the proper understanding of the financial position of the railway. While submission of Appendix A with the Finance Accounts is obligatory, that of Appendix B is not. The latter should nevertheless be prepared and kept on the record for the purpose of effecting the necessary recoveries from the Defence Ministry.

743. Appendix A-Statement of indirect Charges.-This statement should be prepared in Form A 743. Form A. 743.

744. In preparing the above statement the following instructions should be noted:- (a) Under columns 5, 6, and 12 no allowance should be made for indirect charges relating to Capitalisation of land revenue and leave-salary of staff as these charges are now adjusted directly in the railway accounts. (b) Allowance should be made for indirect charges relating to pensionary charges for pension able establishment and to dividend on Capital Outlay, as these are not adjusted in the accounts of individual railways. Note.- In the case of New Construction, surveys and large open line projects, as contribution for pensionary charges in respect of pension able establishment is adjusted in the accounts in the Department, it is not necessary to make an further proforma adjustments in this respect.

745. The total dividend for all railways is adjusted in the Books of the Railway Board, In order that the financial result of the individual railway may be exhibited correctly, it is necessary that due allowance should be made for dividend. For this purpose the figures of dividend should be adopted as intimated by the Railway ministry.

746. Appendix B.-Statement of Works undertaken on behalf of Defence Ministry on which interest and maintenance charges are leviable.-This statement should be prepared in Form A.746. Form A. 746

747. Audit Certificate.-The Annual Finance Accounts should be got audited by the Audit Officer and a signed copy of the audit certificate should be furnished to the Railway Ministry The audit certificate will be on the following lines:-

Certified that t as a result of the test audit of the accounts compiled under the direction of the General Manager that subject to the observation below the Finance Accounts of the …….. Railway for the year…. have to the best of may knowledge and belief been correctly prepared.

C. DEBT HEAD REPORT

748. Due date for submission.- A report on the balances under the "Debt heads" (see Appendix IV) should be submitted by each Financial Adviser and Chief Accounts officer so as to reach the Railway ministry not later than the 10th September, a copy being furnished at the same time to the Statutory Auditor. A copy duly audited should be submitted to the Railway ministry, to reach them by the 25th September.

749. Analysis of Balances. -The report should be based on an analysis of the various balances. The analysis may be in the form given below, separate forms being prepared for "I-Small Savings, Provident fund". "K-Deposits and Advances", "F-Loans and Advances" and "M-Remittances inter-Government adjustment accounts-Accounts with States".

750. The Report-The report should, besides generally reviewing the outstanding balances, furnish explanations for important variations from the previous year's balances and comments on the efficiency of the balances at the end of the year under review.

751. Certificates by the Accounts Officer.-The following certificates, suitably modified wherever necessary, should be furnished by the Financial Adviser and Chief Accounts officers on the Debt head Report :-

1. Regarding-"I-Small savings & provident Fund"-Provident Fund Balances.- Certified that the balances at the end of the year, as per the general books agree with the total of the balances of the individual members, as per personal ledgers and that advice slips showing the balances in the Fund the credit of members on the 31st March, 19….. have been issued to them.

2. Regarding "K-Deposits and Advances"- (i) Deposits.-Certified that action has been taken for the clearance of items outstanding for more than three months. (ii) Cash.-(a) Certified that the cash balance actually in charge of the Cashier (s) and departmental officers on the 31st march 19…… was Rs. ……. (b) Certified that the cash balances in the hands of the Cashier (s) and disbursing officers were verified by actual count and found correct.

3. Regarding "F-Loans & Advances-Loans by the Central Government".- (a) Certified that the recoveries during the year were made regularly as required under the rules. (b) It is also certified that these balances have been analysed and reviewed by sub-heads and there are no cases of write-off suspensions or doubtful assets in the balances; also there are no cases of remission of interest, grant of loan without or at a nominal rate of interest. Grant of loans without necessary safeguards for recovery, and unusually large loans to an individual. (c) The acceptance of the balances outstanding against the employees concerned as on the 31st march, 19………. Have been obtained.

4. Regarding "M-Remittances-inter-Government adjustment accounts-Accounts with States".- Certified that the outstanding balance represents the amount for which settlement could not be effected in the Reserve Bank Account during the year.

5. General.-

Certified that the balances shown in the Report agree with the General books and are supported by details.

752. Audit Certificate.-The Debt Head Report should be got audited by the Statutory Auditor and his audit certificate should be furnished to the Railway Board along with the audited copy of the report. The audit certificate will be on the following lines:-

Certified that as a result of the test audit of the accounts compiled under the direction of the general manager that, subject to the observations below, the Review of Balances of the ……… Railways for the year……….. has, to the best of my knowledge and belief, been correctly prepared.

D. STATEMENT OF ANNUAL EXPENDITURE

753. As soon as possible after the closing of the accounts of a year, a statement A. 753 showing the expenditure for the year under the various heads of accounts prescribed in Appendix IV should be prepared and got audited by the Statutory Audit. An audited copy of the statement should be submitted to the Railway Board on the 1st September following the close of the financial year. Great care should be taken in compiling this statement as it is used in connection with the preparation and check of the Appropriation Accounts.

754. The following annual statements are required to be sent by the Railways so as to reach the Railway ministry on the dates noted against them:-

(i) Statement of exchange on sterling transactions -25th July

(ii) Statement of transfers without financial adjustments -25th July

(iii) Statement showing share capital, debenture and loans of certain branch lines, forms as in Appendix B to Finance revenue Accounts. -Advance Copy 25th August -Audited copy 5th September.

 Multiple choice questions:

1. Which accounts and returns should be compiled after the books for a financial year have been closed and the final accounts current have been submitted?
• (A) The Budget and Expense Reports
• (B) The Capital and Revenue Accounts, Finance Accounts, Debt Head Report, Statement of Voted and Charged Expenditure, and Appropriation accounts
• (C) The Payroll and Inventory Reports
• (D) The Sales and Purchase Reports

Answer: B

2. Which chapter of the Indian Railway Financial code should be referred to for Appropriation accounts and connected Returns?
• (A) Chapter I
• (B) Chapter II
• (C) Chapter IV
• (D) Chapter VI

Answer: C

3. What is the purpose of the Capital and Revenue Accounts?
• (A) To facilitate the review of payroll expenses
• (B) To facilitate a review of the finances of the railway as a Commercial undertaking
• (C) To facilitate the purchase of new equipment
• (D) To facilitate the management of employee benefits

Answer: B

4. From which sources should the statements of accounts in the Capital and Revenue Accounts be prepared?
• (A) Payroll records and sales reports
• (B) Ledger (A. 310), Register of Capital, Depreciation Reserve Fund, Development Fund, Accident compensation, Safety and Passenger Amenities Fund, Revenue Allocation Registers (A. 312), and Registers of Earnings (A. 313)
• (C) Inventory records and maintenance logs
• (D) Travel expense reports and utility bills

Answer: B

5. How many printed copies of the Capital and Revenue Accounts should be submitted to the Railway Ministry and by what date?
• (A) 10 copies by 1st July
• (B) 15 copies by 15th September
• (C) 20 copies by 1st October
• (D) 25 copies by 15th November

Answer: B

6. What is the purpose of Supplementary Accounts?
• (A) To exhibit figures related to employee salaries
• (B) To analyze figures separately under "Commercial" and "Strategic" for the Northern Railway and Northeast Frontier Railway system
• (C) To track inventory levels
• (D) To manage utility expenses

Answer: B

7. How can the accounts pertaining to Capital expenditure and Revenue earnings and Working expenses of the Northern Railway and Northeast Frontier Railway system be analyzed?
• (A) By consolidating all figures into a single report
• (B) By separating figures into "Commercial" and "Strategic" in the Capital and Revenue Accounts or in separate Subsidiary statements
• (C) By excluding figures related to strategic lines
• (D) By focusing only on revenue earnings

Answer: B

8. What should the subsidiary statement of accounts be collectively termed?
• (A) Primary Accounts
• (B) Secondary Accounts
• (C) Supplementary (Capital and Revenue) Accounts
• (D) Comprehensive Accounts

Answer: C

9. Which certificates should be appended to the Capital and Revenue Accounts?
• (A) Employee Performance Certificates
• (B) Safety Compliance Certificates
• (C) Audit Certificate, Certificates by heads of departments concerned and the head of the railway, countersigned by the Commissioner of Railway Safety
• (D) Environmental Compliance Certificates

Answer: C

10. Who signs the Audit Certificate appended to the Capital and Revenue Accounts?
• (A) The General Manager
• (B) The Financial Adviser
• (C) The Audit Officer
• (D) The Commissioner of Railway Safety

Answer: C

11. Who countersigns the last two certificates appended to the Capital and Revenue Accounts?
• (A) The General Manager
• (B) The Financial Adviser
• (C) The Audit Officer
• (D) The Commissioner of Railway Safety

Answer: D

12.    12. What is the purpose of the Finance Accounts according to paragraph 728?

• (A) To track employee attendance
• (B) To summarize the transactions brought to account in the books of the railway under various railway heads of account
• (C) To manage inventory levels
• (D) To plan future railway projects

Answer: B

13.    13. How many printed copies of the Finance Accounts compilation should be submitted to the Railway Ministry, and by what date?

• (A) Six copies by 20th September
• (B) Six copies by 15th September
• (C) Ten copies by 20th September
• (D) Ten copies by 15th September

Answer: A

14.    14. What form should the Abstract Accounts be shown in?

• (A) Form A. 728
• (B) Form A. 729
• (C) Form A. 730
• (D) Form A. 731

Answer: B

15.     15. Which schedule provides a detailed account of expenditure under subsidized companies?

• (A) Schedule A
• (B) Schedule B
• (C) Schedule C
• (D) Schedule D

Answer: A

16.    16. What should Schedule E exhibit?

• (A) The detailed account of Capital expenditure
• (B) The balances in the Accounts Officer's book at the end of the year
• (C) The account of expenditure under Major head 5002/5003 met from Development Fund
• (D) The schedule of expenditure from the Contingency Fund

Answer: B

17.    17. Which schedule should show the account of expenditure under Major head 5002/5003 met from the Depreciation Reserve Fund?

• (A) Schedule A
• (B) Schedule B
• (C) Schedule H
• (D) Schedule J

Answer: D

18.    18. What is the purpose of Appendix A to the Finance Accounts as stated?

• (A) To track employee salaries
• (B) To give information necessary for the proper understanding of the financial position of the railway
• (C) To manage inventory levels
• (D) To plan future railway projects

Answer: B

19.   19. Which form should be used to prepare the statement of indirect charges?

• (A) Form A. 742
• (B) Form A. 743
• (C) Form A. 744
• (D) Form A. 745

Answer: B

20.   20. What is the audit certificate mentioned ----used for?

• (A) To verify employee performance
• (B) To certify that the Finance Accounts have been correctly prepared
• (C) To track inventory levels
• (D) To plan future railway projects

Answer: B

21.    21. Who signs the audit certificate for the Annual Finance Accounts?

• (A) The General Manager
• (B) The Financial Adviser
• (C) The Audit Officer
• (D) The Commissioner of Railway Safety

Answer: C

22.    22. In which form should the schedule of expenditure from the Contingency Fund be submitted?

• (A) Form A. 738
• (B) Form A. 739
• (C) Form A. 740
• (D) Form A. 741

Answer: B

23.    23. What does Schedule C detailed account of?

• (A) Expenditure under Major head 5002/5003 met from Development Fund
• (B) Capital and other works expenditure outside the Revenue Accounts
• (C) Expenditure under Major head 5002/5003 met from Depreciation Reserve Fund
• (D) Expenditure under Major head 5002/5003 met from Accident Compensation Safety and Passenger Amenities Fund

Answer: B

24.    24. Which schedule should show the expenditure under Major head 5002/5003 transferred to Major head 348 Revenue (Open Line Works Revenue)?

• (A) Schedule F
• (B) Schedule G
• (C) Schedule H
• (D) Schedule J

Answer: B

25.    25. What should Schedule K show?

• (A) The balances in the Accounts Officer's book at the end of the year
• (B) The account of expenditure under Major head 5002/5003 met from Accident Compensation, Safety, and Passenger Amenities Fund
• (C) The detailed account of expenditure under subsidized companies
• (D) The schedule of expenditure from the Contingency Fund

Answer: B

 

26.    26. What is the due date for submitting a report on the balances under the "Debt heads" to the Railway Ministry?

• (A) 10th September
• (B) 15th September
• (C) 20th September
• (D) 25th September

Answer: A

27.    27. By what date should a copy of the Debt Head Report, duly audited, reach the Railway Ministry?

• (A) 10th September
• (B) 15th September
• (C) 20th September
• (D) 25th September

Answer: D

28.    28. What form should the analysis of various balances take, according to paragraph 749?

• (A) Form A. 748
• (B) Separate forms for "I-Small Savings, Provident Fund," "K-Deposits and Advances," "F-Loans and Advances," and "M-Remittances inter-Government adjustment accounts-Accounts with States"
• (C) Form A. 749
• (D) A single consolidated form

Answer: B

29.    29. What should the report on balances generally review according to paragraph 750?

• (A) Employee performance
• (B) Outstanding balances
• (C) Inventory levels
• (D) Future railway projects

Answer: B

30.   30. What should be certified regarding "I-Small savings & provident Fund" balances as per paragraph 751?

• (A) That action has been taken for the clearance of items outstanding for more than three months
• (B) That the balances at the end of the year agree with the total of the balances of the individual members, and advice slips showing the balances in the Fund to the credit of members have been issued
• (C) That the cash balances in the hands of the Cashier(s) were verified by actual count
• (D) That the recoveries during the year were made regularly as required under the rules

Answer: B

31.   31. What should be certified regarding "K-Deposits and Advances" according to paragraph 751?

• (A) That the balances at the end of the year agree with the total of the balances of the individual members
• (B) That action has been taken for the clearance of items outstanding for more than three months
• (C) That the cash balance actually in charge of the Cashier(s) and departmental officers on the 31st March was verified
• (D) Both B and C

Answer: D

32.   32. Which certificate confirms that the cash balance actually in charge of the Cashier(s) was verified by actual count?

• (A) Regarding "I-Small savings & provident Fund"
• (B) Regarding "K-Deposits and Advances"
• (C) Regarding "F-Loans & Advances"
• (D) Regarding "M-Remittances inter-Government adjustment accounts-Accounts with States"

Answer: B

33.33.  What should be certified regarding "F-Loans & Advances" according to paragraph 751?

• (A) That the recoveries during the year were made regularly as required under the rules
• (B) That these balances have been analysed and reviewed by sub-heads
• (C) That there are no cases of write-off suspensions or doubtful assets in the balances
• (D) All of the above

Answer: D

34.34. What does the certificate for "M-Remittances inter-Government adjustment accounts-Accounts with States" confirm?

• (A) That action has been taken for the clearance of items outstanding for more than three months
• (B) That the cash balances in the hands of the Cashier(s) and disbursing officers were verified by actual count
• (C) That the outstanding balance represents the amount for which settlement could not be effected in the Reserve Bank Account during the year
• (D) That the balances at the end of the year agree with the total of the balances of the individual members

Answer: C

35.  35. What should be done with the Debt Head Report according to paragraph 752?

• (A) It should be got audited by the Statutory Auditor and his audit certificate should be furnished to the Railway Board
• (B) It should be submitted without any need for auditing
• (C) It should be kept on record without submission
• (D) It should be used for internal review only

Answer: A

36.  36. What is the audit certificate for the Debt Head Report based on according to paragraph 752?

• (A) Test audit of employee performance records
• (B) Test audit of the accounts compiled under the direction of the general manager
• (C) Full audit of the financial transactions of the railway
• (D) Review of future railway project plans

Answer: B

37.  37. Which of the following is NOT a section mentioned for analysis of balances in paragraph 749?

• (A) "I-Small Savings, Provident Fund"
• (B) "K-Deposits and Advances"
• (C) "F-Loans and Advances"
• (D) "N-Investment Accounts"

Answer: D

38.  38. Who is responsible for furnishing the audit certificate for the Debt Head Report?

• (A) The General Manager
• (B) The Financial Adviser and Chief Accounts Officer
• (C) The Statutory Auditor
• (D) The Commissioner of Railway Safety

Answer: C

39.  39. What should be included in the Debt Head Report besides generally reviewing the outstanding balances as per paragraph 750?

• (A) Detailed employee performance reviews
• (B) Explanations for important variations from the previous year's balances
• (C) Future project plans
• (D) Inventory management details

Answer: B

40.  40. By what date should the statement showing the expenditure for the year under various heads of accounts be submitted to the Railway Board?

• (A) 25th July
• (B) 1st September
• (C) 5th September
• (D) 25th August

Answer: B

41. 41.  What should be done with the statement A. 753 after it is prepared?

• (A) It should be sent directly to the Railway Ministry without auditing.
• (B) It should be kept on file for internal review.
• (C) It should be got audited by the Statutory Audit and then submitted to the Railway Board.
• (D) It should be used for preparing future budget plans.

Answer: C

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