Indian Railway Codes and Manuals-Accounts Code-Chapter-4 (IV)
REMITTANCE TRANSACTIONS-INDIA
A.INTRODUCTORY
401.
Classification of transactions:- Transactions
between the Railway Ministry and other ministries or States which are settled
through the Central Accounts Section of the Reserve Bank are referred to in
this Code as "Remittance Transactions". The transactions between the
Railway Ministry and the Pay and Accounts Officers which are settled through
the issue of cheques or Government drafts are referred to as "Pay &
Accounts" transactions. All inter railway transactions are technically
known as "Transfer Transactions" and are referred to as such in this
code.
402.
Settlement of transactions:- As a general
rule all transactions between two different accounting units in the same
railway or between two railways (excluding company worked railways) should be
settled by book adjustment (i. e. not by actual payment or recovery of cash).
With the departmentalisation of Government Accounts the accounts of all the
ministries of the Central Government are maintained under overall supervision
of the Controller General of Accounts, Ministry of finance, Department of
Expenditure. A Pay and Accounts officer is attached to each of the ministries
of the Central Government who is responsible for maintaining the accounts of
his ministry. The transactions arising between the ministry of Railways and the
other Ministries of the Central Govt. and the State Govts. would the settled by
the issue of cheques or Govt. drafts. As an exception to this rule, the
transactions listed below, would be settled through Reserve Bank of India
Nagpur in the manner laid down in Para 436 :- (i) Transaction (including those
relating to services) between Railways, Post and Telegraph and Defence
Departments. (ii) Transaction arising in the books of the High Commissioner of
India in London and Indian Embassy in Washington. These transactions will be
settled through Ministry of External Affairs. (iii) Contribution to General
Revenues for grants to States in lieu of Passenger Fare Tax. (iv) Loan from Central
Revenues to the Railways and recovery of interest on loan and advances to
Railway servants. (v) Settlement of Income Tax recoveries made from Staff
Salary Bills and from the Contractors. (vi) Settlement of Payments against
supplies arranged by the DGS&D in the Deptt. of Supply in the Ministry of
Supply and Rehabilitation. (vii) Transactions relating to the Government of
Burma. Transactions between the Railways and non-government bodies and
institutions or individuals should be settled by actual payment or by actual
recoveries in cash/cheque as the case may be. The settlement of transactions by
book adjustment or through the Reserve Bank should be arranged by the Accounts
Officer. Settlement by book adjustment should be done by classifying the transactions
in the books of the Railways under the relevant remittance head of accounts and
transferring them by means of Transfer Certificates (A 406) to the Accounts
Officers concerned for incorporation in their accounts for the months
specified. Settlement through the Reserve Bank of India should be effected by
sending the advices of Clearance in Form A. 418 to the Reserve Bank and to the
party in whose accounts the transactions are to be incorporated.
403.
In the case of transactions between two accounting units of the same railway or
between two railways (excluding company worked railways) debits by unit
"A" or railway "A" to unit "B" or railway
"B" are set off against credits by "B" to "A" in
the Central Books of the Financial Adviser and Chief Accounts Officer or of the
Railway Board. In the case of transactions enumerated as exceptions in para 402
between the Railway Ministry and other Ministry or a State, the net amounts due
to or from the ministry or State are debited and credited to the "Railway
Fund" (see para 417 in the central books of the Reserve Bank).
B. TRANSFER TRANSACTIONS-INTRA-RAILWAY
404.
Transfers within the Railway-Transfers Capital, and
Transfers Revenue .- As separate accounts records are kept for
"Capital" and "Revenue" transactions of a railway, it often
becomes necessary to transfer capital items brought to account through revenue
books to capital account and vice versa. For this purpose, the following two
remittance heads should be operated on in accounts :- (a) Transfers, Railway
Revenue-For transfers involving revenue account in the Capital Accounts Books,
(b) Transfers, Railway Capital-For transfers to capital account in the Revenue
Account Books. If a capital transaction is brought to account through the
Revenue Account Books, its transfer to Capital Account Books will be effected
as in the journal entries below:- (i) Revenue Books.- Appropriate Revenue. Head
Dr./Cr. To/By Transfers, Railway Capital. (ii) Capital Books.- Transfers,
Railway Revenue Dr./Cr. To/By Appropriate Head under major head 546/547-Capital
outlay on Indian Rlys. Commercial lines/strategic lines. The result is that the
per contra debit or credit to transactions recorded under the head
"Transfers, Railway Capital" in the revenue books will appear under "Transfers,
Railway Revenue" in the capital books and vice versa.
405.
Transfers within the Railway-Transfers Divisional-
The transactions arising in the accounts of one accounting unit which are
adjustable in the accounts of another should be transferred to the latter by
operating on the head "Transfers, Divisional". Separate sub-heads
should be allotted to each Accounting unit. A railway having divisions A. B, C,
etc. besides Stores and Workshop Divisions, should operate on the following
heads :- (a) Transfers, Divisional A-for Division A (b) Transfers, Divisional
B-for Division B (c) Transfers, Divisional C-for Division C (d) Transfers,
Divisional Stores for Stores Accounts, Office. (e) Transfers, Divisional
Workshops-for workshops Accounts Office. (f) Transfers, Divisional Books-for
the Central Accounts office. (g) Transfers construction-for Construction
Accounts Office.
406.
Transfer Certificates- Transfers between
any two accounting units within the same railway should be effected by means of
Transfer Certificates (A. 406) The unit initiating a transfer should prepare
the Transfer Certificates (A.406) in duplicate, send one copy duly supported by
the initial accounts records or vouchers in which the details of the
transactions are set forth to the unit to which the transaction pertains and
retain the other copy as the office copy.
Note-
In case the vouchers cannot be sent in support of the Transfer Certificate, a
certificate showing the particulars of the charge should be sent.
407.
Acceptance of Transfer Certificates.-The
responding Accounts Office i. e., the accounting unit which receives the
Transfer Certificate, should accept the transfer in the accounts of the same
month in which the transfer is proposed in the Transfer Certificate. The
Transfer Certificates for cash transactions should be accepted without demur.
Similarly, the Transfer Certificates for Stores transactions should be accepted
without fail if the Transfer Certificates give full particulars of allocation.
Even in cases where some vouchers have not been received duly accepted and
allocated by the Departmental Officers, the Transfer Certificate should be
provisionally adjusted in the accounts based on the allocations noted in the
vouchers, and in the absence of any allocations in the vouchers, on the basis
of the allocations to be ascertained from the Executive Offices concerned, if
necessary, steps being simultaneously taken to obtain the acceptance later on
as per the provision in para 410. It should be ensured that the transaction is
invariably accounted for in the accounts for the month proposed by the
originating Accounts Officer so that nothing in respect of stores transactions
is left outstanding under Intra- Railway Transfers at the close of a month's
accounts. The acceptance of Transfer certificate should normally be intimated
through the lower half of the transfer Certificate, (Form A-406). If the
transaction does not pertain to the responding unit, the transfer certificate
should be returned forthwith with suitable remarks. In cases other than those
for Cash and Stores transactions for which Transfer Certificates bear the
allocation, if the responding unit cannot accept the transfer in the account
for the month proposed by the originating unit, the former should indicate the
month in which the Transfer Certificate is being accepted.
408.
Numbering and Watching the Acceptance of Transfer
Certificates.-Transfer Certificates issued against a particular
accounting unit should be serially numbered each month. Every accounting unit
should see that there is no break in the serial number of Transfer Certificate
received by it from another, and if any break is noticed, should call for the
missing Transfer Certificate immediately. The acceptance of transfers should,
as they are received, be pasted on the office copies the Transfer Certificates.
Before closing the accounts of the month, the office copies of all Transfer
Certificates issued for the month should be reviewed and the acceptance of any
outstanding Transfer Certificate should be called for. However, in the case of
Cash and Stores transactions the amounts involved should be incorporated in the
accounts and the unit concerned advised telegraphically of the numbers of the
Transfer Certificates so included.
409.
It will be found convenient to have the Transfer Certificate (A-406) bound in
books of convenient sizes and to use separate books for the various accounting
units to whom Transfer Certificates are issued. If this method is not followed,
a manuscript register similar to form A-413 should be maintained in each
account in unit for the purposes of registration of Transfer Certificates
issued and for watching the acceptance thereof.
410.
Adjustment in Accounts.-In the accounts of
the originating Accounts office a transfer transaction should be booked under
the appropriate sub-head under "Transfers Divisional". In the
accounts of the responding office, the transaction should be adjusted by minus
debit or minus credit, as the case may be, to the subhead under "Transfers
Divisional" and by debit or credit to the appropriate head of account. The
result will be that the net total of the transactions under all the subheads of
"Transfers Divisional" in the books of the Central Accounts Office of
the railway will be nil and there will be no outstanding under the head
"Transfers Divisional". For achieving this result, the following
rules should be observed: - (i) All items of cash outlay or receipt, and
transfer of stores must be initially recorded under "Transfers
divisional" in the originating Accounts Office. Transfer Certificates
relating to Cash and Stores transactions should be adjusted by the responding
Accounts Office in the accounts for the same month in which these transactions
are recorded in the books of the originating Accounts Office. (ii) In the case
of other items the Accounts Office originating the transfer should carry out
the necessary adjustments in its books only on receipt of the acceptance from
the responding accounts Office. At the end of the year, however, Transfer
certificates for Stores should be accepted by operating on suspense if
necessary. (iii) The responding Accounts Office should examine the bills or
other supporting vouchers received with the Transfer Certificates to see that
debits or credits transferred to it pertain to it and that they have been
admitted in internal check. In cases where items of debits or credits require
the acceptance of the competent departmental officers the relevant vouchers
should be passed on to such officers for verification, acceptance and return.
As stated above, the Transfer Certificates for cash and stores transactions
should be accepted and adjusted in the accounts, the acceptance of Transfer
Certificates being provisional where departmental officers' countersignature
has to be obtained. The finalization of the adjustments should be watched
through the Register of Transfer Certificates (A-413) or other manuscript
register maintained for the purpose. The Transfer Certificates for transactions
other than the two specified above, should normally (but not in the accounts
for March) be kept pending and adjusted on receipt of vouchers duly accepted
and allocated by the competent departmental officer. Note:- Normally, there
should be no outstanding at the close of the year under the head
"Transfers Divisional". If, however, for any reason there is an
unadjusted balance under this head at the close of the year it should be
allowed to remain there and not cleared by debit or credit to Suspense Head.
Such outstanding should be reported to the Financial Adviser and Chief accounts
Officer stating the circumstances under which the accounts could not be cleared
and he will take necessary measures for their expeditious clearance.
411.
Transfers between Construction Divisions
.-All transfers transactions between two construction divisions submitting
compiled accounts to the same Accounts Officer should be adjusted by the
exchange of Transfer Certificates, (form A.406), between the construction
divisions concerned. The responding division should as a rule, acknowledge the
debit or credit in the same month’s accounts in full, reserving for future
consideration objections, if any, relating to items included in the Transfer
Certificate. The rules prescribed in the matter for the accounts officer of the
open line will apply to construction accounts offices also in other respects.
C. TRANSFER TRANSACTIONS-INTER-RAILWAY
412.
Inter-Railway Transfers .-All transfer
transactions between Railways (excluding Railways worked by Company or District
Boards ) will be adjusted by means of Transfer Certificates. In the books of
the responding Railway, the adjustment in respect of a transfer transaction
will always be by per contra credit or debit, as the case may be, and not by
minus debit or minus credit. With this difference, and the procedure in regard
to the acceptance of Transfer Certificates indicated in sub para below, the
rules laid down in paragraphs 406-411 should be followed mutates mutandis in
inter-railway transfers also. The same procedure will apply in the case of
transfers between a Railway and the Railway Board or units such as the
Chittaranjan Locomotive Works, Integral Coach Factory, Metropolitan Transport
Projects etc. Transfer Certificates for inter railway transactions should be
issued or accepted only by the Central Accounts Office of the railway,
inter-railway transactions originating in a subordinate accounting unit of a
railway being passed on in "transfers" to the Central Accounts Office
for issuing Transfer Certificates against other railways. The detailed
procedure to be followed in this respect will be laid down by the Financial
Adviser and Chief Accounts Officer. As for Cash transactions, Stores
transactions should also be adjusted by the responding railway invariably in
the accounts of the month proposed by the railway forwarding the Transfer
Certificate. The amount, of the Transfer Certificate should, if necessary, be
charged to suspense head by the responding railway if the allocation is not
known and the Transfer Certificate should not be kept pending for that purpose.
For transactions other than Cash and Stores also, the Transfer Certificate
should be adjusted, as far as possible, in the accounts indicated by the
railway forwarding the Transfer Certificate. In cases, however, where this is
not possible, every effort should be made to adjust the Transfer Certificate
before the accounts for the year are closed. If inspite of all efforts any
balance still remains uncleared under the head "Transfer Railways"
the same should be dealt with in terms of the note under para 410.
Note.-
Items of cash receipts and disbursement, misclassified between different
railways by the Treasury/Bank with which the Railway has transactions should be
set right through the Reserve Bank, as explained in paragraph 432 and not
through the head "Transfers Railways".
413.
Register of Transfers .- With a view to
watching disposal of Transfer Certificates issued or received in connection
with inter-railway transfers and to eliminating outstanding under the head
"Transfers Railways", a register of transfers to and from other
railways in form A. 413 should be kept in each Accounts Office, submitting
monthly accounts direct to the Railway board. The register will be kept by
months and will contain reference to Transfer Certificate issued/received and
the month in which it is proposed to take them to account. The entries will be
serially numbered each month.
414.
Procedure and Programme for exchange of Transfer Certificates.- To facilitate
the prompt closing of the monthly accounts for each railway, the following
instructions regarding exchange of Transfer Certificates are laid down :-
(i)
No Transfer Certificate should be issued without accepted vouchers except in
the case of Cash transactions or Stores supplied to other railways or Labour
Department Central Cess charges and in the latter cases, full particulars
should be given as to the authority for raising debits and credits.
(ii)
Separate Transfer Certificates should be issued for charges of different nature
and relating to different departments or accounting units of the same railway.
(iii)
The following target dates for the submission and acceptance and return of
Transfer Certificates should be observed by each railway:-
1. (a) Each originating railway should send Transfer
Certificate before 10th of the following month 1.
(b)
Transfer Certificates for Railway Board's Bulk the Orders should be sent by the
railways to reach Railway Board's office not later than 10th of the following
month
2. Each originating railway must receive acceptance
by 25th of the following month
(iv) The last Transfer Certificates issued to a
railway in each month should be accompanied by a complete list in form A. 414
of all Transfer Certificates despatched to that railway which should be
returned by the responding railway by the 25th of the same month with reasons
for the non-acceptance of any of the Transfer Certificates.
(v) Complete reconciliation of all transfer
transactions should be enforced in the Accounts for June, September and
December each year in the same way as for annual accounts.
(vi) Only such Transfer Certificates as have been
shown as accepted in the monthly list of transfer transaction by the responding
Accounts Officer should be included in the accounts of the originating railway
and the responding railway should not adjust any item which has not been
indicated as having been accepted in the list (Form A. 414)
Note
- Transfer Certificates should be issued/returned
duly accepted in even flow and not left over till the last dates mentioned against
items (1) and (2) above.
415. Disposal of
monthly Lists of Transfers .- On receipt of a Monthly List of
Transfers (A. 414) from another railway, each entry should be compared with the
corresponding entry, if any, in the counterfoil of the lists despatched to that
railway and, if it agrees, the month in which it originated and the month in
which it has been adjusted should be noted in red ink against the item on the
lists in which the item was respectively responded to and originated, any
difference which may come to light being at once enquired into with a view to
rectification.
416. Procedure for
Exchange of Transfer Certificates with reference to annual closing of accounts. - In order to ensure the prompt closing of March
Accounts, the following programme should be adopted for the submission and
acceptance of Transfer Certificates by the railways: -
(1)
(1) Last date by which Transfer Certificates should
reach the responding Accounts Offices:- (i) Between Railways. 31st May
(ii) By the Railway Board for transactions with U. K
25th May
(iii) By Railways to Railway Board for transactions
relating to Railway Bulk Order Programme. 10th May
(iv) By Railway Board to Railways for transactions
relating to Railway Board's Bulk Order Programme. 10th July
(v) For interest on Depreciation Reserve Fund
balances by the Railways to the Railway Board. 3rd July
(2) Date by which acceptance should be communicated
(for items other than items
(iv) and (v) above. Which should be communicated
telegraphically. 15th June
(3) Date by which reconciliation should be completed
(for other) than items (iv) and (v) above. 22nd June
To enable the Railway Board to appreciate the
progress made in the acceptance of Transfer Certificates, the monthly accounts
current for the months of December to February should be accompanied by a
statement showing the outstanding Inward Transfer Certificates for more than
Rs. 500/- each giving clearly reasons for their remaining unaccepted. A similar
statement of Outward Transfer Certificates awaiting acceptance by other
Railways should also be submitted with the monthly accounts current for these
months.
Soon after closing of the accounts for February the
transfer transactions adjusted with other Railways during the course of the
year should be reviewed and special efforts made to secure adjustment of all
outstanding items in the accounts of the year. To facilitate this, an Annual
List of Transfers (A-416) should be dispatched to each Accounts Officer with
whom there have been transfer transactions during the financial year for check
and return. This list should show the total amount debited and credited each
month during the year. Similar action should be taken after the closing of the
accounts for May, August and November of each year in order to secure
adjustment of all outstanding transfer transactions in the accounts for the
months of June, September and December which should be closed in the same way
as accounts for march each year.
The additional time allowed for closing of the
quarterly accounts for June, September and December should be utilized for
reconcilation and final adjustment of outstanding transfer transactions. For
this purpose, a meeting of the representatives of all Railways should be held
at the end of the accounts of each quarter so that a complete reconcilation of
all transfer transaction is effected in the accounts for June, September and
December, It is necessary that all efforts should be made to ensure that the
transfer transactions are not left outside the accounts of the month to which
they relate, and whatever left out should be located during reconcilation and
adjusted in the quarterly accounts and not left over to the fag end of the year
for adjustment in the March accounts.
D. REMITANCE TRANSACTIONS
417. Settlement of Transactions through the Reserve
Bank of India.-There is one central fund in the books of the Reserve Bank for
the Railway ministry as a whole but the details working up to the total figures
for each railway will be available in the books of the Reserve Bank. All
transactions enumerated as exceptions in para 402 will be settled through the
Reserve Bank by operating on this fund. For transactions with Pay and Accounts
Officers see para 457 etc. Note: The provisions of this paragraph do not apply
to the adjustments on account of the Dividend to general revenues and the
interest on the balances of the railway reserves (see paragraph 451 and 452
''etc''.
418. Advice of Clearance.-The total amount due to
each Railway from State Government and Central Ministries other than Railway
Ministry should be advised monthly to the Reserve Bank of India Nagpur in Form
A.418 for adjustment against the balance of the State Government or the
non-Railway balance of the Central Government as the case may be. These advices
should be sent to the Reserve Bank of India, Nagpur at intervals, viz., on the
10th, the 20th and at the end of the month, the last one being sent before the
5th of the following month and always marked "Final". As a general
rule, the advices should be based on accepted vouchers or bills (but seen para
427).
Note-
If it is not a practicable, without causing much extra work, to prepare and
send advices to the Reserve Bank three times in month, it is open to the
Financial Adviser and Chief Accounts Officer to send them twice a month keeping
in view, however, the fact that there should no under delay or heavy rush on
the Bank in the settlement of transactions and that there should be no large
outstanding under "Suspense". Form A-418
419. A consolidated advice embodying all the
transactions relating to the States and the Central Accounts Offices such as
Accountant General (Central Revenues). Accountant General (Posts and
Telegraphs), Controller General of Defence Accounts, during the period should
be prepared and sent to the Reserve Bank of India, Extracts of this advice to
the Bank should be sent to the Accountants General of States or the Accounts
Officers of the Central Ministries concerned.
420. Memo of
Clearance by the Reserve Bank.- The Reserve Bank will, on receipt
of each Advice (A-418) make the necessary adjustment in the accounts of the
party concerned and issue an intimation in Form A-420,both to the debtor and to
the creditor party to the transactions. It should be watched that there is no
delay in the receipt of such intimations from the Bank and on receipt of the
intimation a note should be made in the Register of Advices issued to the Bank
(A-429) against the advice issued to the Bank. Similarly copies of advices
received from the State Accountants General and other Central Accounts Officers
should be linked with the information received from the Bank. Form A-420
421. Outward and
Inward Accounts of Remittance Transactions. - In addition to the
Advices (A-418) sent during the month, a separate "Outward" account
(A- 421) for each month supported by vouchers (or schedules, if the connected
vouchers have been forwarded in advance, vide Para 422 working upto the net
debit or credit advised to the Reserve Bank during the month should be sent
monthly to the Accountant General of the State or the appropriate Accounts
Officer. This account will cover only those items in respect of which the
initiative rests with the Railways. Similarly, an "Inward" account
(supported by vouchers or schedules, if the connected vouchers have been
forwarded in advance) will be received every month from the other Accounts
Officers, i. e., the Accountants General of States and the Accounts Officers of
the ministries of the Central Government with which the railway have an
account, in respect of items for which the initiative rests with them.
422. Advance schedule.-The
Railway Accounts Officer should sent the connected vouchers for a month in
advance of the monthly account to the Accounts Officer concerned with an
Advance schedule in form A-422. After the advice for the clearance of the same
is issued to the Reserve Bank, a copy of the advice should also be sent to him
and a reference to these Advance Schedules (A-422) should be given in the
Schedules (A-421). Similarly, vouchers will be sent in advance by other
Accounts Officers to the Railway Accounts Officer.
423. Adjustment of
Remittance Transactions. - The adjustment of all transactions
with a State and other Central ministries will be effected provisionally in the
railway accounts under Suspense heads in the first instance. As remittance are
made, cheques issued, advices for clearance sent to the Reserve Bank and
monthly accounts received from the State Accountant Generals etc… the
transactions should be allocated to the Suspense heads mentioned in paragraph
435 by per contra debit or credit to the appropriate revenue and service heads.
The suspense heads should be cleared on receipt of necessary information from
the Central Accounts Office of the Reserve Bank. Note: For adjustments on
account of the Dividend to the General Revenues and the interest on the
balances of the railway reserves, see paragraph 451 and 452 ''et c..
424. All the items included in an account received
from another Accounts Officer, whether of a State or a Central ministry, should
be accepted and adjusted in full by the Railway Accounts Officer in the manner
described in paragraph 435. If it is found during course of the internal check
or adjustment that an item does not relate to the railway, it should not be rejected
but referred to the Accounts Officer concerned indicating the reasons for
reversal of the adjustment. After obtaining his consent a reversing entry
should be included in the Advice (A-418) to the Reserve Bank. Similarly, the
reversing entry should be reflected the 'Outward' account (A-421) sent to that
Accounts Officer for the month in which that advise is included.
425. Adjustment of Transactions relating to February
and March.-Special steps should be taken for the prompt clearance of
transactions relating to the accounts of the last two months of the year, viz.,
February and March. The books of the reserve Bank for the month of March will
be closed by the 25th April after which date no transactions will be cleared by
the Bank in that month's account. To facilitate early settlement of the
accounts for March, adjustments which originate in the accounts for February
and earlier months should be completely settled and advised to the Reserve Bank
in good time before the end of March. Adjustments for the month of March should
be advised to the Reserve Bank to the extent possible before the expiry of that
month and what is left over, on the 5th, the 15th and the 25th April (or on the
previous dates if any of these dates is a holiday); the last three advices to
be sent by telegram, if necessary. The last advice to be sent by the 25th April
should include a certificate by the Financial Adviser and Chief Accounts
Officer that no further adjustment will be intimated to the Bank in respect of
the accounts of the financial year just ended. Any further adjustment
pertaining to the preceding year should be taken into the account of the
subsequent year. Occasions for such postponement should, however, seldom arise.
Every such delayed adjustment should be brought to the notice of the Railway
Board with an explanation of the circumstances which led to the delay.
426. As the time for the clearance of bills for a
month is limited owing to the closing of the Bank's books for a month by the
7th of the following month, such of the bills against other Accounts Officers
as are not ready before that date may be taken in the accounts of the next
month. It should, however, be arranged that the bills covering the transactions
pertaining to the month of March or the year are cleared in the accounts of the
year.
427. With regard to the settlement of transactions
with other Central Departments and State Governments the following instructions
should be strictly followed:-
(a) Schedules (A. 422) for February and March should
be sent to the non-Railway Accounts Officers so as to reach them on the 25th
March and 10th April respectively, the corrections found necessary in the
February Schedule being also advised so as to reach them not later than the
10th April.
(b) There is no objection to accounting officers
arranging by mutual agreement for the submission of advance schedules in
batches if this is considered more convenient.
(c) Subject to the provisions of sub-paragraph(d)
below, debits in respect of supplies made or services rendered may be raised in
accounts for March in anticipation of their acceptance by the officers
concerned, provided they are supported by vouchers or papers giving full
classification of the charges and indicating clearly the department and
officers to whom the supplies were made or services rendered. This procedure is
not meant to cover individual items on which separate agreements may have been
arrived at.
(d) In order to overcome the difficulty that may be
experienced in connection with the settlement of the bills on account of
warrants and credit notes received during March in the accounts for the year,
provisional bills may be prepared on the basis of station figures and adjusted
against the ministries and State Government concerned, any undercharges or
overcharges detected as a result of check by the Accounts Office being adjusted
in the accounts for April of the next financial year. The original vouchers
need not be sent with the provisional bills but may be submitted with the final
bills. Non-railway Accounts Officers have instructions to accept debits on
account of warrants and credit notes relating to March without insisting on the
submission of the original vouchers. A similar procedure should be adopted with
regard to the transactions adjustable with the Burma Government (see Chapter V)
so that the settlement of the transactions may be effected through the Reserve
Bank of India before 25th April when the books of the Bank for the month of
March will close.
DETAILED ACCOUNTING
PROCEDURE
428. Two registers
in Forms A. 409 and A. 430 should be maintained by the Accounts Office to
record the transactions cleared by the Reserve Bank from day to day on behalf
of the railway.
429. Register of Advices
Issued.- As advices are issued to the Bank by the Railway Accounts
Officer, they should be posted in Register A. 429. Form A-429
430. Register of Advices
received. -- Copies of the advices received from other Accounts Officers
should be posted in the Register- A-430 Form A-430
431. Posting of the Advices Registers .-The Memo of
clearance (A.420) received from the Reserve Bank in compliance with the Advices
(A. 418) issued by the Railway Accounts Officers, or in compliance with those
issued by other Accounts Officers should be posted in the columns provided in
the Forms A. 429 and A. 430 immediately on receipt. The figures for other
columns, viz, "Balance uncleared" should then be worked out at the
end of the month and the balance agreed with the balance in the ledger under
the Suspense heads mentioned in paragraph 435.
432. Statements from Banks and Treasuries.-Each bank
with which the railway has transactions will send daily a statement to the
Railway Accounts Officer showing separately the cheques paid and earnings and
other miscellaneous receipts received by it for each railway. These statements
should be checked immediately on receipts with the counterfoils of cheques and
cash remittance notes. Any discrepancies noticed in the figures should, after
verification with the bank's record, be pointed out immediately to the Central
Accounts Section of the Reserve Bank who would set them right by addition to or
deduction from the figures of a railway transactions of the following month and
show them as such in the relative closing statements of that month. This
procedure will also apply to the items misclassified between different railways
in the initial accounts of the banks and treasuries (see note under paragraph
412). Similarly, each treasury/bank with which the railway has transactions
will also send daily duplicate copies of the scrolls together with relative
vouchers (i. e. challans and paid instruments). These should be checked in the
same manner as the other statements received from Reserve/State Banks. The cash
remittance notes which are not accounted for in these statements and the unpaid
cheques should be listed out separately in two separate manuscript registers
and the total for each worked out at the end of every month.
433. After the statement received from the banks and
treasuries for each date have been checked, the totals of the (to the end of
the) previous date should be brought forward and the totals to end of the
period worked out in different columns of the statements. The grand totals for
the month should at a later date be reconciled with the totals of the monthly
transactions of the railway as recorded in the books of the Reserve Bank which
will be intimated to the Railway account officer by he reserve Bank or in
respect of treasury transactions, with the amount included in the account
rendered by the Civil Accountant General. The discrepancy, if any, noticed in
this reconcilation should be reported to the Reserve Bank at Nagpur (for
transactions at banks) to the Accountant General (for transactions at
treasuries) and the Railway Board immediately.
434. The statements received from the banks should
be carefully filed as these will take the place of the Bank/Treasury Pass Books
and the consolidated treasury receipts.
435. Accounts Heads.-
The following heads should be operated in the ledger for adjustment of
transactions under the above procedure :- (1) L- Suspense and miscellaneous (b)
Suspense (a) Reserve Bank Suspense. (b) Remittance into banks. (c) Cheques and
Bills. (2) M-Remittances-Inter-Government adjustment accounts. (3) L-Suspense
and miscellaneous (c) other accounts-Deposits with Reserve Bank.
436. Reserve Bank
Suspense.-The account received from other Accounts Officers should be
verified with the total amount of the advices (copies) and of the advance
schedules for a month received in advance from those Accounts Officers. The
various items included in the account except remittances and cheques paid which
will be journalized as indicated in paragraph 440 should, after verification
and acceptance, be adjusted against the appropriate head of account by per
contra credit/debit to the head "Reserve Bank Suspense". On receipt
of the clearance memo from the Reserve Bank in clearance of the
transactions-intimated to the Reserve Bank by other Accounts officers, the head
"Reserve Bank Suspense" should be debited/credited by credit/debit to
the head "Deposit with Reserve Bank".
Note.-
Normally, the advices along with the connected vouchers should be received from
the Civil Accounts Offices every month and the head, "Reserve Bank
Suspense" should be cleared monthly by adjustment against the final heads
concerned. Where, however, the items cannot be admitted in internal check and
charged to the final heads, for want of full particulars, acceptance of the
vouchers etc., the amount together with the amount of which no vouchers are
received, should be allowed to remain under "Reserve Bank Suspense"
during the course of the year, but before the year's accounts are closed, all
balances under the head, "Reserve Bank suspense" should be cleared by
adjustment to the final heads to the extent possible or to "Miscellaneous
Advances" "Deposits miscellaneous" Capital or Revenue, as the
case may be.
437. (a) Remittance into
Banks.-This head should be operated upon as earnings are remitted into
the Banks and Treasuries. The amount of all Remittance Notes for a day should
be debited against the head "Remittance into Banks". At the end of
the month, after the figures have been reconciled as indicated in paragraph 432
and 433 the total amount of the remittances acknowledged by the Banks and
Treasuries should be debited to the head "Deposit with Reserve Bank"
by credit to "Remittances into Banks". It should be seen that only
that amount of the remittances received in a month at Bank is adjusted against "deposit
with Reserve Bank" as has been cleared by the Reserve Bank on behalf of
the Accountant General. (b) Cheques and Bills.- This head should be operated
upon as cheques are drawn by the Railway Accounts Officer. The amount of all
cheques drawn for the day should be credited to the head "cheques and
Bills". At the end of the month after the figures have been reconciled as
indicated in paragraph 432 and 433, the total amount of cheques paid by the
Banks and Treasuries should be credited to the head "Deposit with the
Reserve Bank" by debit to the head "Cheques and Bills". It
should be seen that only hat amount of the cheques paid in a month at the
Treasuries/Banks is adjusted against "Deposit with the Reserve Bank"
as has been cleared by the Reserve Bank. 438. Accounts with States etc.-As a
transaction on behalf of a non-Railway Accounts Officer originates, it should
be taken under this head by per contra debit/credit to the appropriate service
head. The total amount of the transactions booked under the head
"890-Accounts with States etc.", will be verified with that recorded
in the Register of Advices (A-429) and will be cleared on receipt of the
Clearance Memo from the Bank.
439. Deposits with
Reserve Bank.-This head will be operated upon only to record (a) the
Memo which are received from the Reserve Bank in clearance of transactions
intimated to the Bank by the Financial Adviser and Chief Accounts Officer or in
clearance of transactions intimated by other Accounts officers (civil, Defence,
posts and Telegraphs etc.), to the bank and (b) the clearance of remittances
and cheques and bills. The net amount of each advice received from the bank
will be debited/credited to the head "Deposit with Reserve Bank" by
per contra credit/debit to one or more heads mentioned above under which the
transactions have been accommodated in the first instance.
Note.-
The provisions of this paragraph do not apply to the adjustments on account of
Dividend to general revenues and the interest on the balances of the railway
reserves (See paragraph 451 and 452 et seq.).
440. Accounting.-The procedure of adjustment will be
as follows:-
441. Verification and
Reconciliation.- The net amount of the Clearance Memos received in a
month from the bank in clearance of the transactions originated by other
Accounts Officers (Central and State) against the railway should be verified by
the Financial Adviser and Chief Accounts Officer of the railway with the
Accounts and the schedules received for the month from the parties concerned.
The transactions should be adjusted in the accounts of the railway in the same
month as in those of the Reserve Bank, and any discrepancy noted in the course
of adjustment or verification should be promptly referred to the other Accounts
Officers concerned for settlement by a further original entry in a latter
outward account of the Financial adviser and Chief Accounts Officer of the
railway.
442. Ordinarily there should remain no balance at
the end of the year under the heads "890-Accounts with States-etc.,
(Railways)" and "Reserve Bank suspense", if prompt action is
taken in intimating the transactions to the Reserve Bank for clearance and in
adjusting the transactions of the inward monthly accounts of other accounts
officers. In case there is an outstanding balance at the end of the year the
reasons for the same should be investigated and the items adjusted in the
accounts in hand, i. e. in the earliest possible month of the next year. (See
also note under para 436).
443. The transactions cleared by the Reserve Bank as
posted in the Registers (A429 and A-430) will only represent a part of the
transactions under the head "Deposits with Reserve Bank" i. e. those
passed through the monthly inward and outward accounts. To these totals should
be added the net amount of the remittances acknowledged and the amount of the
cheques paid by the banks, (of. Para 432) to arrive at the total transactions
cleared by the Reserve Banks in a month. This total figure should be verified
with the transactions booked in the accounts under the head "Deposit with Reserve
Bank". This verification should be done by the Financial Adviser and Chief
Accounts Officer soon after the close of the accounts of the month. The net
balances at the end of the month under that head should after verification be
intimated by him to the Railway Board for reconcilation of the total balance
for all the railways as intimated by the Reserve Bank to that Office. An
intimation of the balance (after verification) should also be sent to the
Reserve Bank of India, Nagpur.
444. The balance under the head "Remittance
into Banks" and "Cheques and Bills" will represent the amount of
unaccounted for remittances (which will be rare) and the amount of uncashed
cheques respectively. These should be reconciled every month with the totals of
cash remittance notes which had not been included in the intimation received
from the Reserve Bank the accounts received from State Accountants General and
the amount of unpaid cheques as per counterfoils of cheques as recorded in the
register mentioned in paragraph 432 This reconciliation should be made as early
as possible before the accounts for the month are closed. The net balance at
the end of the year under these Suspense heads should be carried forward to the
next year under each of these heads. See also paragraph 233.
Note:
The balance under the head "Cheques and Bills" should be reviewed
half yearly and the amount of cheques, remaining uncashed for more than six
months after the date of issue should be credited to 'Abstract Z650 other
unclassified or to the work concerned according as the transaction relate to
working expenses or works respectively. The particulars of all uncashed cheques
so adjusted in accounts should be kept in a special register to be maintained
for the purpose to facilitate disposal of requests for fresh cheques that may
be received subsequently.
445. Reconciliation of the Transactions under the
heads "Deposits with Reserve Bank" etc.-The Reserve Bank will
intimate to the Financial Adviser and Chief Accounts Officer in the beginning
of every month, the net figures of the transactions for the preceding month
cleared by the bank on behalf of each railway and the net figure cleared since
1st April of the year. These figures should be reconciled with the total
figures recorded in the registers in forms A-429 and A-430 and the statements
of remittances and cheques received from the banks including Nationalised Banks
and also with those recorded in the general books under the head "Deposits
with Reserve Bank".
Note-
The provisions of this paragraph do not apply to the adjustments on account of
the Dividend and the interest on the balances of the railway reserves (See
paragraph 451 and 452, et seq.)
INTER-DEPARTMENTAL
TRANSACTIONS
446. Income-Tax
Recoveries.-Recoveries on account of income-tax made from the salary
bill should be credited to the Railway Board in "Transfers" by the
5th of the following month. The Railway Board will-settle them with the
Accountant General, Central Revenues and through the Reserve Bank.
447. Debits, Deposits
and Advances. -The transactions under the head "I-Small Savings,
Provident Funds etc.," "K-Deposits and Advances",
"L-Suspense and miscellaneous" will be booked finally in the Railway
Accounts, i. e., the recoveries on accounts of General Provident Fund, State
Railway Provident Fund, etc, and the payments therefrom will be booked under
the heads prescribed vide Appendix IV. Similarly, security deposits received
for works done, earnings of worked lines, etc, and the contribution to the
Depreciation Reserve Fund etc. will be booked under the heads
"Deposits" and Depreciation Reserve Fund" etc., respectively.
448. Interest on the
balance of Provident Fund Deposits.-The amount of interest due on the
balances in the Provident funds for the year should be worked out after
completing, in all respects the postings for march (i. e., recoveries made in
pay bills for February) and communicated to the Railway Board by the 25th July,
debit being raised for this amount under "Transfer Railways (R. B.)"
in the accounts for March. The interest on the Provident Fund balances will be
adjusted by the Railway board (Accounts) directly with the Accountant General,
Central Revenues, in the Accounts for March.
449. Interest in respect of the Provident Fund
accounts closed in the course of the year should also be adjusted every month
by the financial adviser and Chief Accounts Officer with the Railway board
under "Transfers Railways". The intimation of the figure of interest
on the fund balances for a month should be sent to reach the Railway Board by
the 5th of the following month.
450. Interest on Loans
and Advances.-the interest recovered on account of loans and advances
should be credited to the Railway Board through "Transfers Railways",
and the transfer advised by the 5th of the month following that to which the
transaction relates.
451. Interest on the
balance of the Depreciation Reserve Funds .- Interest on the balances of
the Depreciation Reserve fund will be worked out by railways and credited to
the fund itself by debiting the head "Transfers Railway" Railway
Board. In the books of the Railway Board the amounts involved will be debited
against the head "Deposits with reserve Bank" by a contra credit to
the head "Transfers" Railway. This transaction will not pass through
the accounts of the reserve Bank but an intimation there of will be sent to the
Accountant General Central Revenues. (Interest on balances in the development
fund and Reserve Fund, Pension Fund. Accident Compensation, Safety and
Passenger Amenities Fund is adjusted by the Board's Office in its own books).
452. Dividend to General
Revenues.-The Dividend on the capital outlay on the railways which is
payable to the General Revenues is adjusted in the books of the Railway board
with the Accountant General Central Revenues. These charges are calculated in
the Railway Board's Office. The amount involved will be debited to the head
"351-Payment to General Revenues" by a per contra credit, to the head
"Deposits with Reserve Bank", but the per contra adjustment will not
pass through the Reserve Bank; only an intimation there of will be sent to the
Accountant General, Central revenues.
453. Miscellaneous
Remittances into Treasuries/Banks.-All amounts due to the railway from
non-Government institutions, private bodies and individuals should, as a rule
be required to be paid to the Cashier, whose duty it is to receive the amounts,
grant suitable receipts duly signed by the Railway official authorised in this
behalf and deposit the amounts collected into the treasury/bank for credit to
the railway. In exceptional cases where this arrangement is not practicable, a
departmental officer may receive the amounts due to the railway and grant
suitable receipts. In such cases the moneys received should ordinarily be
remitted to the treasury/bank either direct or through the Cashier or the
nearest Station Master, in all these cases, the receipt foil of the Treasury
Remittance Note (A- 1944) or the miscellaneous Receipts Transmit Note (A-1605)
should be required to be submitted to the accounts Officer (with the account
rendered by the departmental officer) for watching the credit. It occasionally
happens that money is deposited in treasuries/banks by outsiders to the credit
of the railway. In such cases, also, the depositor should be instructed to
submit the receipt foil of the Remittance Note to the Accounts Officer to
enable the latter to watch the credit.
454. Provident Fund recoveries adjustable by other
Accounts Officer and Foreign Service Contributions .-Recoveries on account of
Provident funds, if adjustable in the books of another office, should be
intimated to that office as and when these are actually made from the bills,
particular care should be taken in this respect in the months of January,
February and march so as to enable the Accounts officer concerned to credit the
amounts to the accounts of the deposits in the proper month or the year
concerned. Similarly, it should be arranged to recover and adjust foreign
service contributions in the accounts of the same year to which they relate.
455. Pension Payments.-the payment of pensions and
the commuted value of pensions will be made at civil Treasuries/Post
Offices/Banks and the debit for the same will be adjusted by the State
Accountants General/Director Accounts (Postal) banks against the Financial
Adviser and Chief Accounts Officer of the Railway concerned through the Reserve
Bank. (See Chapter X)
456. Purchase of Service Postage Stamps .-For
obtaining service postage stamps from the treasury a cheques for the amount
should invariably be issued. The procedure of settlement through the Reserve
bank should not be followed for this purpose.
E. SETTLEMENT
TRANSACTIONS-PAY AND ACCOUNTS
457. Settlement transactions-Pay and accounts
Offices.-Payment and accounting of transactions relating to the departments of
the Central and State Governments for which the accounts have been separated
from Audit, is the responsibility of Pay and Accounts officers attached to the
Department or ministry concerned. The Pay and Accounts Officers will not issue
any authorization on railway Accounts Officers to make payments on their behalf
or vice versa, such transactions being settled on cash basis as explained in
the following paragraphs. As an exception to this rule, payments made by the
Chief Pay and Accounts officers in respect of purchases made through the agency
of the Directorate General, Supplies and Disposals, should be adjusted through
the Reserve Bank of India in the manner laid down in para 436.
458. Transactions relating to railways arising in the
Accounts of Pay and Accounts Officers and vice versa.-Pay and Accounts officers
will not settle transactions with railways through the Reserve Bank and
vice-versa. All their dues will be paid/received at weekly intervals on cash
basis i. e., by cheques or Government drafts.
459. Payments by/to Pay and Accounts Officer.-All
cheques (or government drafts in the case of outstation payments) will be
crossed with the words "Account Government".
Note.
(1)the minimum limit for the preparation of cheque or for drafts will not apply
for this purpose. (2)where the amount involved is Rs. 5 lakhs or more and if
the settlement for any reason has to be by drafts it will be effected by
telegraphic remittances being issued at par by the Reserve Bank just like
Government drafts.
460. Transactions arising in the Accounts of the Pay
and Accounts Officers which are adjustable by Railway Accounts Officers .-the
Pay and Accounts Officers will make weekly claims or remittances in settling
all transactions originating in their books to be settled with the Railway
Accounts Officers and the claims or a cheque as the case may be will be
forwarded with an advice in Form A-460(P.A.O.9). Form A-460 (P.A.O.9).
461. Immediately on receipt of an account of such
transactions from the Pay and Accounts Officers, the railway Accounts Officer
will check the vouchers accompanying it to see that the totals are correct,
that the items correctly pertain to the railway and that no voucher is missing.
He will then enter it in an Inward Register Form A-461` (P.A.O10) and affix on
it the serial number of the register. Form A-461 (P.A.O10)
462. In cases in which the account shows some amount
due to the railway, it will be accompanied by a Government draft/cheque, which
will be sent to the Chief Cashier for remittance to the treasury/bank for being
credited to Railway Account.
463. In the converse case when the account shows an
amount due to the Pay and Accounts Officer, arrangements will be made to send a
cheque (for local payment) or a Government draft as the case may be within 7
days of the receipt of the account without waiting for the detailed check of
the vouchers. The cheque or government draft will always be for the full amount
claimed by the Pay and Accounts of officer except in cases where some mistake
in calculation is detected in the course of the preliminary check of totals or
where an item clearly pertaining to another Accounts officer has been wrongly
included in the account. In the latter cases cheques/government draft will be
sent for the correct amount, the discrepancy being pointed out to the Pay and
Accounts Officer, simultaneously. The connected pay orders will be included in
separate Abstracts (A.1107) and the cheque will be sent to the Railway Cash and
Pay Office together with the forwarding Note Form A-460 (P. A. O.9) for
transmission to the Pay and Accounts Officer. The amount will be shown as
debitable to the appropriate service head (where the final allocation is
known), a suspense head, a transfer head or Purchase Account as the case may
be. Transactions relating to stores for stock should be debited to
"Purchases" and other for which the allocation is not known may be
booked to "miscellaneous Advances". Incidental charges on stores
required for general purposes which are debitable to Abstract "A"
vide para 2164- S should be debited to the final head direct. When payments
have to be made on the basis of telegraphic intimations received from the Pay
and Accounts Officer in regard to payments made by them from the 20th to 28th
March the distribution of incidental charges between the "Works"
stores and "General Purposes" stores may be made on the date
available for the earlier months of the year.
464. If at the time of adjustment of the
transactions under final heads of account. The Railway Accounts officer finds
that an items has been passed on to him erroneously, he will re-credit or debit
it to the Pay and Accounts officer through the next weekly intimation to be
sent to the latter along with the supporting vouchers.
465. Payments in March.-In order to claim
reimbursements for transactions arising in March within the financial year, the
pay and Accounts officer will not normally make any payment adjustable with the
Railways after the 25th March. They will send bi-weekly intimation to the
Railway Accounts Officers in respect of transactions arising from the period
from 17th to 25th March positively. In exceptional cases where such payments
have got to be made after 25th March, a telegraphic intimation will be sent to
the Railway Accounts Officer and the latter will arrange to issue the cheque or
Government draft before 31st march.
466. Transactions arising in the accounts of the
Railway Accounts Officers adjustable with the Pay and Accounts Officer.-All
transactions appearing in the Railway books which are adjustable with the Pay
and Accounts officer will be classified under "MRemittances-Inter
Government adjustment accounts-Pay and Accounts Officers A,B,C, etc." a
separate suspense register being maintained for each Pay and Accounts Officers
with whom the transactions are to be settled. These transactions will be posted
daily and weekly totals will be struck in the subsidiary register for
transactions arising during the period from 1st to 8th, 9th to 16, 17 to 24th
and 25th to the last day of the month. From these registers, the weekly figures
will be transcribed in the outward claim register in Form A. 466 (P. A. O.6)
separate pages being allotted for each Accounts Officer. Form A. 466 (P. A. O.
6)
467. Receipts and payments will then be listed
separately in two schedules in Form A. 467 (P. A. O.7) If the account closes
with some amount due to the Pay and Accounts officers, a cheque or draft as the
case may be will be sent to the pay and Accounts officer concerned with the
forwarding letter in Form A. 460 (P. A.O .9) Acknowledgement f the
cheques/drafts by the Pay and Accounts officer will be watched and reference
the acknowledgement when received pasted on the back of the office copy
connected forwarding letter. In the converse case when payment on behalf of Pay
and Accounts Officers are more than their receipts during the week the schedule
with supporting vouchers will be sent to the Pay and Accounts Officers with the
forwarding letter in Form A.460(P. A. O.9) referred to above calling for a
cheque for the amount due to the railway. On receipt of the cheque from the Pay
and Accounts officer, it will be sent to the Railway Cash Office under, a
Miscellaneous Receipts Transmit Note Form A. 1605 showing the amount as
creditable to the suspense head M-Remittances Inter Government adjustment
accounts-Pay and Accounts Officers A, B, C. etc.
Question 1:
What are
"Remittance Transactions" as defined in the Railway Code? a)
Transactions settled through the issue of cheques or Government drafts.
b) Transactions between the Railway Ministry and other ministries or States
settled through the Central Accounts Section of the Reserve Bank.
c) Transactions between two different accounting units in the same railway.
d) Transactions between two railways settled by book adjustment.
Key: b
Question 2:
Which
transactions should be settled by actual payment or recovery of cash/cheque? a)
Transactions between the Railway Ministry and other Ministries of the Central
Govt.
b) Transactions between Railways, Post and Telegraph, and Defence Departments.
c) Transactions between the Railways and non-government bodies and institutions
or individuals.
d) Transactions listed in para 402.
Key: c
Question 3:
How are
transactions between the Ministry of Railways and the State Governments
settled? a) By book adjustment.
b) Through the Reserve Bank of India.
c) By issuing cheques or Government drafts.
d) By transferring them to the Accounts Officers concerned.
Key: c
Question 4:
Which of the
following transactions is settled through the Reserve Bank of India, Nagpur? a)
Transactions with non-government bodies.
b) Loans from Central Revenues to the Railways.
c) Transfers between two accounting units of the same railway.
d) Transfers within the same division of a railway.
Key: b
Question 5:
What should be
done if vouchers cannot be sent in support of the Transfer Certificate (A-406)?
a) The Transfer Certificate should be rejected.
b) A certificate showing the particulars of the charge should be sent.
c) The Transfer Certificate should be kept pending.
d) The Transfer Certificate should be accepted provisionally.
Key: b
Question 6:
In which form
should the advice of Clearance be sent to the Reserve Bank of India? a) Form
A-406
b) Form A-413
c) Form A-418
d) Form A-417
Key: c
Question 7:
What is the
result of the transfer to Capital Account Books of a capital transaction
brought to account through the Revenue Account Books? a) Debit to Transfers,
Railway Revenue in the capital books.
b) Credit to Transfers, Railway Revenue in the capital books.
c) Debit to Transfers, Railway Capital in the revenue books.
d) Credit to Transfers, Railway Capital in the revenue books.
Key: a
Question 8:
Which
accounting unit should be operated on for transferring transactions arising in
the accounts of one division to another within the same railway? a) Transfers,
Railway Capital
b) Transfers, Railway Revenue
c) Transfers, Divisional
d) Transfers, Intra-Railway
Key: c
Question 9:
What should be
done if a Transfer Certificate does not pertain to the responding unit? a)
Accept it provisionally.
b) Return it forthwith with suitable remarks.
c) Adjust it under suspense.
d) Forward it to the correct unit.
Key: b
Question 10:
How should the
acceptance of Transfer Certificates be intimated? a) Through a new Transfer
Certificate.
b) Through the lower half of the Transfer Certificate (Form A-406).
c) By sending a separate letter.
d) By updating the Transfer Certificates register.
Key: b
Question 11:
What is the method of adjustment for transfer transactions between Railways
as per para 412? a) By means of minus debit or minus credit.
b) By actual payment or recovery of cash.
c) By per contra credit or debit.
d) By issuing cheques or Government drafts.
Key: c
Question 12:
Who is responsible for issuing Transfer Certificates for inter-railway
transactions originating in a subordinate accounting unit of a railway? a) The
originating accounting unit itself.
b) The Financial Adviser and Chief Accounts Officer.
c) The Central Accounts Office of the railway.
d) The responding railway's Accounts Office.
Key: c
Question 13:
By when should each originating railway send the Transfer Certificate
according to the target dates specified? a) Before the 10th of the following
month.
b) Before the 25th of the following month.
c) Before the end of the current month.
d) Before the 15th of the following month.
Key: a
Question 14:
How should misclassified items of cash receipts and disbursements between
different railways by the Treasury/Bank be set right? a) Through the head
"Transfers Railways".
b) Through book adjustment.
c) Through the Reserve Bank.
d) Through issuing new Transfer Certificates.
Key: c
Question 15:
Which form should be used for the register of transfers to and from other
railways? a) Form A-406
b) Form A-413
c) Form A-418
d) Form A-414
Key: b
Question 16:
What should accompany the last Transfer Certificates issued to a railway
each month? a) A complete list of all Transfer Certificates dispatched to that
railway.
b) A detailed explanation of the transfer.
c) The original vouchers for verification.
d) A certificate of accuracy.
Key: a
Question 17:
By what date should acceptance for Transfer Certificates be communicated
(except for certain items) according to the annual closing of accounts
procedure? a) 31st May
b) 15th June
c) 10th May
d) 25th June
Key: b
Question 18:
What action should be taken soon after closing the accounts for February
regarding transfer transactions? a) Issue new Transfer Certificates for
outstanding items.
b) Review and make special efforts to adjust all outstanding items.
c) Reconcile all cash transactions.
d) Prepare a new set of accounting records.
Key: b
Question 19:
What is the purpose of holding a meeting of representatives of all Railways
at the end of each quarter? a) To issue new Transfer Certificates.
b) To prepare the annual accounts.
c) To ensure a complete reconciliation of all transfer transactions.
d) To audit the previous quarter's accounts.
Key: c
Question 20:
By when should the Railway Board receive Transfer Certificates from the
railways for transactions relating to the Railway Bulk Order Programme? a) 31st
May
b) 10th May
c) 25th May
d) 10th July
Key: b
Question 21:
Which fund is used for settling all transactions enumerated as exceptions in
para 402? a) State Government fund
b) Non-Railway balance of the Central Government
c) Central fund in the books of the Reserve Bank for the Railway Ministry
d) Suspense head
Key: c
Question 22:
According to para 418, how frequently should advices be sent to the Reserve
Bank of India, Nagpur? a) Once a month
b) Twice a month
c) Three times a month
d) Every week
Key: c
Question 23:
In para 419, who should receive extracts of the advice sent to the Reserve
Bank of India? a) Financial Adviser and Chief Accounts Officer
b) Reserve Bank of India
c) Accountants General of States or the Accounts Officers of the Central
Ministries concerned
d) Responding railway’s Central Accounts Office
Key: c
Question 24:
What form does the Reserve Bank of India use to issue an intimation of
adjustment for transactions? a) Form A-418
b) Form A-420
c) Form A-421
d) Form A-422
Key: b
Question 25:
What must be done if it is not practicable to send advices to the Reserve
Bank three times a month? a) They should be sent once a month.
b) They should be sent twice a month.
c) They should not be sent at all.
d) They should be sent directly to the Railway Board.
Key: b
Question 26:
In para 421, what type of account should be sent monthly to the Accountant
General of the State or the appropriate Accounts Officer? a) Monthly financial
account
b) Outward account
c) Suspense account
d) Inward account
Key: b
Question 27:
What is the purpose of sending an Advance schedule in form A-422? a) To
notify the Reserve Bank of India about new transactions.
b) To prepare and send connected vouchers for a month in advance.
c) To issue certificates of accuracy for transactions.
d) To summarize the transactions for the year.
Key: b
Question 28:
What should be done with items included in an account received from another
Accounts Officer if they do not relate to the railway? a) Reject the item.
b) Accept and adjust in full, then refer to the Accounts Officer concerned.
c) Forward the item to the Reserve Bank.
d) Send back the item to the originating railway.
Key: b
Question 29:
By when should the books of the Reserve Bank for the month of March be
closed? a) 25th March
b) 5th April
c) 25th April
d) 15th April
Key: c
Question 30:
What should be included in the last advice sent by the 25th April according
to para 425? a) A list of pending transactions.
b) A certificate by the Financial Adviser and Chief Accounts Officer.
c) A summary of the annual accounts.
d) An advance schedule of transactions.
Key: b
Question 31:
Which transactions should be cleared in the accounts of the next month if
not ready by the 7th of the following month? a) February transactions
b) March transactions
c) Transactions with other Accounts Officers
d) Transactions with the Reserve Bank
Key: c
Question 32:
When should schedules (A-422) for February and March be sent to the
non-Railway Accounts Officers? a) 25th February and 10th March
b) 25th March and 10th April
c) 1st February and 1st March
d) 1st April and 1st May
Key: b
Question 33:
For which transactions is there no objection to raising debits in the
accounts for March in anticipation of their acceptance by the officers
concerned? a) Individual items with separate agreements
b) Warrants and credit notes
c) Supplies made or services rendered
d) Adjustments on account of Dividend
Key: c
Question 34:
What is the procedure for provisional bills related to warrants and credit
notes received during March? a) They should be sent with the original vouchers.
b) They should be adjusted against the ministries and State Government
concerned.
c) They should be excluded from the annual accounts.
d) They should be forwarded to the Railway Board.
Key: b
Question 35:
What should be done with transactions not cleared by the Reserve Bank by the
25th April? a) Include them in the accounts of the following financial year.
b) Adjust them in the accounts of the current financial year.
c) Forward them to the Railway Board for reconciliation.
d) Include them in the final bills.
Key: a
Question 36:
Which forms are
used to maintain the registers by the Accounts Office to record transactions
cleared by the Reserve Bank?
a) A. 418 and A. 429
b) A. 409 and A. 430
c) A. 420 and A. 421
d) A. 422 and A. 431
Key: b
Question 37:
Where should
advices issued by the Railway Accounts Officer to the Bank be posted?
a) Register A. 429
b) Register A. 430
c) Form A. 432
d) Form A. 420
Key: a
Question 38:
In which register should copies of advices received from
other Accounts Officers be posted?
a) Register A. 429
b) Register A. 430
c) Form A. 418
d) Form A. 420
Key: b
Question 39:
What should be done upon receipt of the Memo of Clearance
(A. 420) from the Reserve Bank?
a) Post it in Register A. 429
b) Post it in Register A. 430
c) Work out the balance uncleared
d) All of the above
Key: d
Question 40:
What information
is included in daily statements sent by banks to the Railway Accounts Officer?
a) Cheques paid and earnings
b) Miscellaneous receipts
c) Earnings and other miscellaneous receipts
d) All of the above
Key: d
Question 41:
Who should discrepancies in figures from banks be
reported to?
a) The Reserve Bank of India, Nagpur
b) The Accountant General
c) The Railway Board
d) All of the above
Key: d
Question 42:
Which head should
be operated upon as earnings are remitted into the banks and treasuries?
a) Reserve Bank Suspense
b) Remittance into Banks
c) Cheques and Bills
d) Accounts with States
Key: b
Question 43:
What does the head "Cheques and Bills"
represent?
a) Amount of unaccounted remittances
b) Amount of cheques paid
c) Amount of cheques drawn by the Railway Accounts Officer
d) Amount of earnings received
Key: c
Question 44:
Which head will be
operated upon only to record the memos received from the Reserve Bank in
clearance of transactions?
a) Reserve Bank Suspense
b) Remittance into Banks
c) Cheques and Bills
d) Deposits with Reserve Bank
Key: d
Question 45:
What should be
done with the balance under the head "Cheques and Bills" if cheques
remain uncashed for more than six months?
a) Debit to "Miscellaneous
Advances"
b) Credit to "Abstract Z650"
c) Leave as it is
d) Report to the Railway Board
Key: b
Question 46:
What should be done with the statement received from the
banks and treasuries for each date?
a) Check immediately on receipt
b) File carefully
c) Verify with the counterfoils of cheques and cash remittance notes
d) All of the above
Key: d
Question 47:
What does the head "Accounts with States etc."
represent?
a) Transactions on behalf of a
non-Railway Accounts Officer
b) Transactions cleared by the Reserve Bank
c) Transactions with the Reserve Bank
d) Transactions related to remittances and cheques
Key: a
Question 48:
What should be
done if discrepancies are noted during the verification and reconciliation
process?
a) Report to the other Accounts Officers
concerned
b) Adjust transactions in the next month
c) Refer to the Railway Board
d) Both a and b
Key: d
Question 49:
When should the balance under the heads "Remittance
into Banks" and "Cheques and Bills" be reconciled?
a) At the end of every month
b) At the end of the year
c) At the end of each financial quarter
d) At the end of the financial year
Key: a
Question 50:
To whom should the
balance under the head "Deposits with Reserve Bank" be intimated
after verification?
a) The Reserve Bank of India, Nagpur
b) The Railway Board
c) Both a and b
d) The Accountant General
Key: c
Question 51:
By which date
should income-tax recoveries from the salary bill be credited to the Railway
Board?
a) 1st of the following month
b) 5th of the following month
c) 10th of the following month
d) 15th of the following month
Key: b
Question 52:
Under which heads will transactions related to Provident
Funds, Deposits, and Advances be booked finally in the Railway Accounts?
a) Transfers
b) Suspense and Miscellaneous
c) Provident Funds, Deposits, and Advances
d) All of the above
Key: c
Question 53:
By which date
should the amount of interest due on Provident Fund balances for the year be
communicated to the Railway Board?
a) 5th March
b) 25th July
c) 30th September
d) 31st December
Key: b
Question 54:
How should the
interest on Provident Fund accounts closed in the course of the year be adjusted?
a) Monthly by the Financial Adviser and
Chief Accounts Officer
b) Quarterly by the Financial Adviser and Chief Accounts Officer
c) Annually by the Railway Board
d) Monthly by the Railway Board
Key: a
Question 55:
The interest recovered on loans and advances should be
credited to the Railway Board through which head?
a) Transfers Railways
b) Provident Funds
c) Deposits with Reserve Bank
d) Remittance into Banks
Key: a
Question 56:
Which head is used to credit interest on the balances of
the Depreciation Reserve Fund?
a) Deposits with Reserve Bank
b) Transfers Railways
c) Remittance into Banks
d) Cheques and Bills
Key: b
Question 57:
How is the Dividend on the capital outlay on the railways
payable to the General Revenues adjusted?
a) Through the Reserve Bank
b) In the books of the Railway Board with the Accountant General Central
Revenues
c) Directly by the State Accountants General
d) Through the Financial Adviser and Chief Accounts Officer
Key: b
Question 58:
What should be done with all amounts due to the railway
from non-Government institutions, private bodies, and individuals?
a) Paid to the Cashier
b) Deposited directly in the treasury/bank
c) Remitted through the nearest Station Master
d) All of the above
Key: d
Question 59:
How should recoveries on account of Provident funds
adjustable by other Accounts Officers be intimated?
a) At the end of the financial year
b) When these are actually made from the bills
c) Monthly through transfers
d) Quarterly through accounts
Key: b
Question 60:
How will the payment of pensions and the commuted value
of pensions be made?
a) Directly by the Railway Accounts
Office
b) At civil Treasuries/Post Offices/Banks
c) Through the Reserve Bank
d) By the Financial Adviser and Chief Accounts Officer
Key: b
Question 61:
Which procedure
should not be followed for obtaining service postage stamps from the treasury?
a) Issuing a cheque for the amount
b) Settlement through the Reserve Bank
c) Direct purchase from the treasury
d) Remittance through the nearest Station Master
Key: b
Question 62:
Which method is not allowed for payment and accounting of
transactions relating to the departments of the Central and State Governments?
a) Through the Reserve Bank of India
b) Cash basis
c) By cheques
d) By Government drafts
Key: a
Question 63:
How often should Pay and Accounts Officers settle their
dues with railways?
a) Daily
b) Weekly
c) Monthly
d) Quarterly
Key: b
Question 64:
How should all cheques or government drafts for payments
by/to Pay and Accounts Officers be crossed?
a) "Account Railway"
b) "Account Government"
c) "Account Central"
d) "Account State"
Key: b
Question 65:
What is the procedure for settlements involving amounts
of Rs. 5 lakhs or more?
a) By ordinary cheques
b) By telegraphic remittances at par by the Reserve Bank
c) By money order
d) By direct bank transfer
Key: b
Question 66:
What form should be used by the Pay and Accounts Officers
for making weekly claims or remittances to Railway Accounts Officers?
a) Form A-457 (P.A.O.8)
b) Form A-460 (P.A.O.9)
c) Form A-467 (P.A.O.7)
d) Form A-466 (P.A.O.6)
Key: b
Question 67:
What should the Railway Accounts Officer do upon
receiving an account of transactions from the Pay and Accounts Officers?
a) Forward the account to the Chief
Cashier
b) Check the vouchers and enter them in an Inward Register
c) Immediately send a cheque for the full amount
d) Return the account to the Pay and Accounts Officer
Key: b
Question 68:
What should be done with a government draft/cheque
accompanying an account showing some amount due to the railway?
a) Forwarded to the Chief Pay and
Accounts Officer
b) Sent to the Chief Cashier for remittance to the treasury/bank
c) Kept on file for future reference
d) Returned to the Pay and Accounts Officer
Key: b
Question 69:
If an account shows an amount due to the Pay and Accounts
Officer, what should the Railway Accounts Officer do?
a) Send a cheque within 30 days
b) Send a cheque or Government draft within 7 days
c) Forward the account to the Chief Cashier
d) Wait for a detailed check of the vouchers
Key: b
Question 70:
What form should be used to classify all transactions
appearing in the Railway books that are adjustable with the Pay and Accounts
Officer?
a) Form A-467 (P.A.O.7)
b) Form A-460 (P.A.O.9)
c) Form A-466 (P.A.O.6)
d) Form A-457 (P.A.O.8)
Key: c
Question 71:
When should Pay and Accounts Officers avoid making
payments adjustable with the Railways in March?
a) After the 15th March
b) After the 20th March
c) After the 25th March
d) After the 31st March
Key: c
Question 72:
How should the Railway Accounts Officer handle
transactions that have been passed on erroneously?
a) Forward them to the Chief Cashier
b) Re-credit or debit them in the next weekly intimation to the Pay and
Accounts Officer
c) Return them immediately
d) Send them to the Reserve Bank for adjustment
Key: b
Question 73:
Which form should be used for weekly totals of
transactions arising in the accounts of the Railway Accounts Officers?
a) Form A-457 (P.A.O.8)
b) Form A-460 (P.A.O.9)
c) Form A-466 (P.A.O.6)
d) Form A-461 (P.A.O.10)
Key: c
Question 74:
What should be included in separate Abstracts (A.1107)
when payments are to be made on the basis of telegraphic intimations?
a) Connected pay orders
b) Inward Register entries
c) Weekly summaries
d) Government drafts
Key: a
Question 75:
What should be done with incidental charges on stores
required for general purposes?
a) Debited to "Purchases"
b) Debited to "miscellaneous Advances"
c) Debited to the final head direct
d) Debited to a suspense head
Key: c
Question
76:
What form is used for the forwarding letter when sending
cheques/drafts to the Pay and Accounts Officer?
a) Form A-467 (P.A.O.7)
b) Form A-460 (P.A.O.9)
c) Form A-466 (P.A.O.6)
d) Form A-461 (P.A.O.10)
Key: b
Question 77:
How should the Railway Accounts Officer handle receipts
and payments that close with an amount due to the Pay and Accounts Officers?
a) Send a cheque for the full amount
b) Send a cheque or draft with supporting vouchers
c) Forward them to the Chief Cashier
d) Return them for adjustment
Key: b
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