Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-28 (XXVIII)
CHECK AND
PAYMENT OF STORES BILLS
2801. The liabilities incurred in connection with
'receipts' of stores are discharged either :
(a) by direct payment; or
(b) by means of book adjustments.
2802. Direct Payments.—Bills in respect of which direct
payments are made, are in respect of :
(a) Purchases arranged by the Controller of Stores ;
(b) 'Local purchases' of petty stores, arranged through the
Directorate General of Supplies & Disposals, in cases in which the
Directorate General of Supplies and Disposals has authorised direct payment to
the Suppliers ;
(c) Supplies of timber ;
(d) Supplies of Coal, Coke and oil fuel;
(e) Sewing and tailoring charges;
(f) Customs duty on 'imported stores' ;
(g) Loading and unloading charges due to contractors;
(h) Port dues, wharfage, etc.
These are in respect of bills submitted for payment in terms of contracts
placed by the Railways.
2803. Book
adjustments.—These are in respect of :
(a) railway inter-departmental transactions as in the case
of stores returned to the Stores Depots and manufactured stores supplied by
railway workshops to Stores Depots— these items have been dealt within Chapter
XXVII;
(b) payments due to other Government Departments where the
Exchange Account facility is available;
(c) payments due to other railways.
2804. Payment for Direct Purchases by the Controller of
Stores.—In all cases of direct payments, the procedure for the internal check
of bills for stores supplied should generally include
(i) a check of the Purchase Order (S. 714) on firms as,
described in paragraph 2805;
(ii) a check of the Receipt Notes (S. 719 or 726) which
notify the actual receipt of the stores ordered for, as described in paragraph
2807; and
(iii) the maintenance of Purchase Account Registers (S.
2809) to enable a record being kept of the liabilities incurred on account of
stores purchased from each supplier that have not been discharged by payments,
pending the detailed check of bill as described in paragraphs 2818 to
2821.
2805. Check of
Purchase Orders.—As stated in paragraph S. 715, a copy of the Purchase Order
will be received by the Accounts Officer, Stores, direct from the Controller of
Stores On receipt of this, he should see :
(i) that there is continuity in the number of Purchase
Orders (missing numbers should be reported to the Controller of Stores for
necessary action);
(ii) that items of stores, Purchase Orders of which are
beyond the powers of purchase by the Controller of Stores have been sanctioned
by the competent authority ;
(iii) that the Purchase Orders do not infringe the Purchase
Policy Rules in Chapter III;
(iv) that the Purchase Orders do not contain any items of
stores which should be purchased through the Directorate General of Supplies
and Disposal; and other nominated agencies except in emergencies;
(v) that there is no great variation in the rate adopted
from time to time for the purchase of the same kind of material;
(vi) that the rates and other particulars are in accordance
with the agreement with the contractor in case where a contract for the supply
of material is in force;
(vii) that there are no erasures, overwritten figures or
unattested correction in the Purchase Orders; and
(viii) that the Purchase Orders have been signed by a
Gazette Officer of the Stores Department, authorised to do so.
2806. Uncomplied
with Purchase Orders.—The Purchase Orders should then be kept arranged serially
group by group or in any other order as may be decided upon by the FA &
CAO.
2807. Check of
Receipt Notes Part III of S. 719 or 726.—The next document to reach the
Accounts Officer is usually the Receipt Notes (S. 719 or 726) Part III, in
cases where payments are not to be made on proof of dispatch (S. 2815).
(i) The number and date of Receipt Note should be entered
on the connected Purchase order. The Receipt order No. and date for stocked
items should also be indicated on the Purchase Order, for facilitating review
of Suspense Register at later date.
(ii) The rates and quantities on the Receipts Note should
be compared with the rates and quantities shown on the Purchase Order and the
Receipt Note should be enfaced 'Checked with Purchase Order' over the initials
of the clerk responsible for the check. In case of part supplies, a note of the
quantities supplied should be made on the Purchase Orders.
(iii) The 'value' should be calculated and entered into the
'amounts' column of the Receipt Note. In calculating the value of each item of
stores, the total value should be rounded off to the nearest praise.
(iv) It should be seen that there are no overwritten
figures, esasures or unattested correction on the Receipt Note, and that the
number of the Receipt Notes are in consecutive order.
2808. Periodical
Summary of Credits to Purchase Account.'—Where the stores accounting of a
railway has been decentralised it is necessary to provide for the individual
Stores Accounts Offices to be advised of the day-to-day credits to the Purchase
Account maintained at the Headquarters Office in respect of materials
pertaining to depots served by such offices. In such cases, therefore, after
the above checks have been applied, the Receipt Notes received each day from
the stores depots or any authorised inspecting and receiving agency should be
sorted by the depots to which the stores are consigned, and listed separately
for each depot in the form similar to the Periodical Summary of Issues (S.
2702) showing the number and the date of the Receipt Note and the value. These
summaries will be called "Periodical Summaries of Credits to Purchase
Accounts (S. 2808)" and sent periodical to the local Stores Account Office
concerned alongwith Part IV of the Receipt Notes included therein. The total of
these summaries for a month should agree with the total credits for the same
month in the Purchase Account Register for stores for stock.
2809. Maintenance
of Purchase Account Register.—Generally 'Purchases' are made first and
'Payments' follow. In order to record each transaction as it takes place,
Purchase Account Register should be maintained head of account wise by the
Stores Accounts Office in the from shown below :
Purchase Account Registers should have separate pages
reserved for transaction of each firm or contractor and should be provided with
sufficient columns to record details continuously for three years in case of
suppliers whose contracts run for more than one year at a time or who are known
to have frequent and regular dealings with the Stores Department. Where space
permits, the same page may be used for more than one A.T. or Order, enough
spacebeing left between two A.Ts or Orders for the number of payments likely to
be made on each A.T. or order. In respect of suppliers whose contracts are not
expected to run beyond a year, and whose dealings with Railways are frequent a
smaller size of register may be used which provides columns for only twelve
months {i.e. one financial year). The Purchase Accounts Registers should be
chronologically numbered for a financial year, and should be capable of being
identified by the year and serial number of the Register. After checks
prescribed in paragraph 2807 have been applied the Receipt Notes, Receipt Order
Number, Railway Receipt No. and date, Quantity, rate and value of supply should
be entered in the Purchase Account Register as a credit to the account of the
supplier. Reference to the Register No. and the page number of the Purchase
Account Register should be quoted on each receipt Note at the same time. When
the bills for stores supplied is received from the supplier, it should, before
being passed for payment, be checked against the credit in the Register, and if
the amount billed for is found to agree with the credit, the same should be
entered as a debit against the entry of credit. Differences, if any, should be
immediately investigated and rectified. No bill should be passed for debit to
'Purchases, unless the corresponding credit already appears in the Register
except in case of advance payments to firms authorised to receive such advance
payments.
Note.— For hundred per cent supplies, Purchase Account
Registers may, if considered, convenient, be maintained depotwise in the serial
order of the Receipt Note without allotting a separate page for each supplier.
All the particulars prescribed in form S. 2809 should be posted in this form
for each entry. If the items are not likely to get cleared within the same
year, the register may be designed to accommodate 2 years transaction to save
tune in carrying over of Balances.
2813. Abstract of
Purchase Account Registers.—At the end of each month an abstract should be made
in the following form by bringing together the transactions-debits, credits and
balances of each contractor.
2814. The
vertical total of the figures for the month will represent the debits, credits
and balance for the month, of the Purchase Account (Capital 7200). Subject to
the exception stated in paragraph 2815, a debit balance should not be permitted
in the Purchase Account Register. If a debit balance arises from any other cause
it should be investigated and removed at once.
2815. Debit
Balances in Purchase Account Register.—It occasionally happens that bills for
stores supplied are received, supported by the railway receipt, in advance of
intimation of the actual arrival of the stores and that payment has to be made
before the stores have been acknowledged as received in the stores Department.
Such cases of payment prior to the actual debit to stores should be permitted
only in the case of well known firms of commercial standing; but when they do
occur the payment made is usually 100/98/95/90 per cent of the value of stores
dispatched and should be debited to 'purchases account' even though there is no
credit and a debit balance will consequently ensue. When such bills are passed,
the postings shall be made in a separate Purchase Account Register reserved for
the purpose and immediate steps should be taken to clear the debits in the
Purchase Account, by debits to 'Stores' on acknowledgements of the Stores by
Depot Officers. In the purchases Account Registers the amount will be posted
separately as a debit balance against the account of the supplier
concerned.
2816. Review of
Purchase Account Registers.—It is imperative that the postings of credits in
the Purchase Account Registers should be correctly made and that they should be
up to date, as arrears or incorrect postings will cause delay in passing bills
for payment. The register should be inspected once a week by the Section
Officer and once a month by the Stores Accounts Officer.
2817. Bills of
Supplies—Bills for the supply of stores should be prepared by the suppliers in
Form S. 2817 and sent direct to the Accounts Officer, Stores, of the railway
for payment.
2818. Bills may
not be submitted in duplicate by suppliers. The bills should be supported by
Part-II of the Receipt Note (S. 716 or 726) granted by the depot receiving the
supply. Bills that are not supported by the receipt Note should be returned
unpaid to the party presenting the bill. An exception is made in the case of 95
per cent bills, vide paragraph 2815. Duplicate copies of Part II of the Receipt
Note should not in any circumstances be issued to the suppliers by the depots.
Ail applications of this nature should be addressed to the Chief Accounts
Officer who will take any necessary action in the matter.
2819. Check of
Suppliers bills.—(i} On receipt of the bill it should be stamped with the date
Stamp of the Office and examined to see :—
(a) that the bill is prepared in standard form and if not prepared in that form,
that all the necessary particulars required by the form are given, and
(b) that is marked 'original' and is free from erasures and
unattested corrections and bears the signature and address of the vendor.
(ii) The bill should then be registered and numbered in a
Register of Bills and passed on immediately to the rate verification clerk, who
should verify the correctness of the rates and quantities charged in the bill
with those given in the copy of the Purchase Order received direct from the
Controller of Stores. The certificate of the correctness of rate and quantities
should be signed by the Section Officer, in charge of the section who should
also see that the particulars of bills are noted on the Purchase Order to keep
a watch over the quantities supplied against an order from time to time. When
the order is completed and payment made in full, the purchase order should be
stamped 'COMPLETED'.
(iii) The bill should then be passed on to the clerk
responsible for checking the totals and calculations, who should also see
:—
(a) that the rates, quantities and nomenclature in the bill
agree with those given in the Receipt Note Part II; the latter being
compared with Part III of the Receipt Note (S. 719 or S. 726). received direct
in the Accounts Office (see paragraphs 723 and 729);
(b) that the rates are given both in words and
figures;
(c) that the Receipt Note Part II is signed by the Officer
authorised to do so and his signature agrees with the specimen signature kept
in the Accounts Office;
(d) that the purchase is made by the authority competent to
do so and in accordance with the rules in force;
(e) that any extra charges claimed by the contractor such
as freight and insurance, etc. are accepted by the Stores Department and are in
accordance with the terms of the agreement; and
(f) that all recoveries due from the contractor are
made.
(jv) The Purchase Account Register Clerks should than
verify the amount lying at the credit of the contractor in his ledger. The
amount for which the credit is verified should be written on the bill by the
purchase ledger clerk under his initials. He should quote the accounts bill
number and the amount passed in his Purchase Register against the entry of
credit received through Receipt Order, Part III and also post the value of the
bill as debit in the Purchase Account Register. It should be ensured that the
allocations given in the bill by the Bill passing section agree with the
allocation of the Purchase Account in which the credit is outstanding. Once
this is done, the Register
No..............................................Folio
No....................................... of the Purchase Account Register
should be noted as aproof of posting the item. Except in the case of bills
referred to in paragraph 2815, no bill should be passed unless credit exists in
the Purchase Account Register. (The Controller of Stores should furnish to the
Account Office a list of the Suppliers entiled to the concession referred to in
paragraph 2815).
(v) In case no credit has been received through Receipt
Order, Part III, the bills should be kept pending till the receipt of such
credit and inquiries made of the depot regarding the delay in the submission of
the Receipt Note.
2820. 5/10 per cent bill etc.—The procedure in paragraph
2817 etc. will be followed mutatis mutandis.
2821. Defacement
of Part II of the Receipt Note.—After each bill has been audited the head of
the sub-section will see that the acknowledgement of receipt of the stores,
i.e. Part II of the Receipt Note is punched and enfaced with the following
stamp:
Stores supplied under this receipt have been passed for
payment under bill No
.................................................................................
dated...................................in the Accounts
for...........................................for
Rs...............................................
The number and date will be the number and date assigned to
the bill in the 'Register of bill received'. The stamp should be affixed at the
part where the acknowledgement of the receipt of the stores by the Department
is given.
2822. Audit
Enfacement.—The audit enfacement of the bills should then be filled up after
which the bills should be submitted to the Section Officer. The Section Officer
will be responsible for examining each bill to see that there is evidence that
all prescribed checks have been applied and that the audit enfacements are
correct. In addition thereto, he should himself check completely at least three
bills each day. A note book (S. 2822-Manuscript) should be maintained by the
Section Officer in which particulars of bills checked by him and the results of
the check should be recorded for the inspection of Stores Accounts Officer. The
bills should then be sent up for the Stores Accounts Officer approval and
signature, or approved by the Section Officer himself as the case may be,
depending upon the financial limits prescribed (by the Board) from time to
time.
2823. Risk
Purchases.—Certain contracts for the supply of stores provide for the purchase
of stores at the risk and cost of a contractor in the event of his failure to
comply with the terms of the contract during the stipulated period. When under
such a provision in a contract, an article is purchased at a higher rate than
the one shown in the contract, the Receipt Note Part III should be valued at
the contract rate and the Purchase Register posted accordingly. On receipt of a
bill, the amount at the contract rate should be debited to "purchase"
and the balance to miscellaneous advances (Revenue), as recoverable from the
contractor who failed to supply the article at the rate contracted for. The
latter head should be cleared as soon as the recovery is effected. In
exceptional cases, when recovery from the defaulting contractor has been
effected before payment at the higher rate has been made, the recovery should
be credited to deposits and the amount paid in excess of the original contract
rate debited to it.
Note.—In the case of production units where suspense had
"Misc. Advance (Revenue)" is not operated, the suspense head
"Misc. Advance (Capital)" may be operated for the purpose.
2824. Abstract of
Bills.—As they are completed, the bills should be included in an Abstract of
audited Bills and sent (duly signed by the Stores Accounts Officer) with
cherubs for the total amount of the Abstract to the Cashier for payment. Before
the bills are sent to the cashier reference to the number of the Abstract in
which they have been included should be entered in the 'Register of Bills
Received'.
2825. Prompt
Payment of Bills.—No bill should ordinarily take more than four days to be
disposed of in the Accounts Office unless there are defects in it which render
in admissible in audit or call for further reference.
2826. Paid
bills.-—The bills should be returned by the Cashier after payment for record in
the Accounts Office. The date of the receipt of the paid bills should be
entered in the Register of Bills and the signature of the record clerk obtained
against each entry in the register. The paid bills should then be post-audited
on the lines laid down in the Indian Railway Account Code.
2827. Watch over
supplies against contracts.—The particulars of supplies received in the depots
should be posted in the Contract Register (S. 503) from the Receipt Notes (Part
III). At the end of each month, balances should be struck so that the position
of each contract may be ascertained.
2828. Payments for Direct Purchases from Abroad.—When
stores are purchased direct from abroad either through contracts placed by
Railway Board or by Zonal Rlys./Production Units, the following procedure
should be adopted for making payments for the supplies :
(a) The FA & CAO of the Zonal Railway or the Production
Unit indicated in the contract as the paying authority should Open Letter of
Credit (L.C.) with State Bank of India or any of the Nationalised Banks.
(b) On the strength of the telex advice containing Contract
No. & date, description of item (s), rate, quantity dispatched value paid
received from the banker abroad, the bank in India may be authorised to debit
the Railways' account with the Reserve Bank of India without a reference at
that stage to the Railway.
(c) On receipt of the copy of the telex advice or receipt
of a copy of the advice from the Bank in India, whichever is earlier, the
Accounts Officer who is authorised to make payments under the contract should
examine the primafacie correctness of the debit and this should be specifically
accepted under his signatures. If this primafacie examination reveals any incorrectness,
the matter should be immediately taken up with the bank in India for resolving
the issue.
(d) On receipt of the actual shipping documents, if as a
result of an internal check there are defects rendering the payments made
unacceptable, the bank in India should on receipt of an intimation from the
Railway be required to credit the account of the Railway with the Reserve Bank
of India with the actual amount originally debited. This will ensure that the
difference between buying and selling rates of foreign exchange is not operated
to Railway's disadvantage.
(e) The exchange rate applicable on the date the foreign
supplier negotiated the documents with their bankers should be taken as the
applicable exchange rate for working out the liability of the Railway
Administration.
(f) Banks may charge interest for the period between the
date of negotiating the documents and the actual payment by the Railway
Administration to ensure that there is no avoidable delay in the bank
presenting the documents to the Railway Administration, a pre-determined time
limit for the above period may be agreed upon with the banks. No interest
charges should be paid by the Railway Administration to the banks for delays
beyond this limit. Free time, if any, allowed by the banks for such commercial
transactions should be fully availed of an all efforts made to complete the
transaction within that period in order to avoid/minimise payment of
interest.
(g) In addition, banks will claim commission charges for
opening L.C. commitment charges, cable charges, etc. which should be checked.
(h) In case where foreign exchange payment is covered under
foreign loads/credit grants, the procedure prescribed in the foreign exchange
release/licensing condition should be followed.
(i) Shipping documents usually prescribed are :
(i) Foreign Supplier's invoice
(ii) Bill of lading
(iii) Packing list
(iv) Certificate of country of origin
(v) Marine insurance policy
(vi) Any other documents as prescribed in the respective
contract.
(Authority : Railway Board's letter No. 78/RS/G/779/38, dt
(14-9-78 and) No. 83/F(S) I/PW.5/ 1 dt. 24-3-83).
2829. Register of Bills passed provisionally.—Items
passed provisionally for payment should be entered in the Register of
Objectionable Items, and in all such cases the audit enfacement on the bill
should be according to the following form:
Bills other than Purchase paid for in cash :
2830. (i) Customs
Duty Bills :
(a) The rates charged should be checked with the Indian
Customs Tariff.
(b) The amount on which duty is charged should be checked
with the invoices.
(c) Customs duty should be included in the cost of stores
on which it is levied and the amounts thereof should therefore be extracted in
a statement to enable posting to be made in the ledgers.
(d) The correctness of the rate of exchange adopted for
conversion should be checked.
(e) The insurance charges included to arrive at the CIF
value should be checked.
(F) It should be ensured that the classification of
material has been made correctly and discrepancies, if any, pursued.
All the Customs Duty Bills should be checked cent per cent
in the Accounts Office. A manuscript Register should be maintained in the
Accounts Office to record all the Customs Duty Bills checked and
admitted.
2830. (ii) Refund
of Customs Duty.—All the claims for the refund of Customs Duty arising out of
the following be made within proper time and credited to the cost of imported
stores (to which it pertained) when refund materialises.
(a) Wrong rates adopted
(b) Wrong classification of Material
(c) Refunds on consignments list or short landed,
etc.
2831. Clearing
Contractor's Bills.—(i) In the case of imported stores, the quantities should
be checked with the account of tonnage and freight. In the case of materials
returned by departments, etc. the quantities or weight shown should be checked
with the respective vouchers.
(ii) The payment to Contractor may be classified into two
categories namely :—
(a) charges for services rendered by him.
(b) charges arising out of the import, such as wharfage,
demurrage, shed opening charges, infringement charges, etc.
The payments for the services rendered should be checked to
ensure that they are in accordance with the conditions of contract
agreement.
It should be seen that rates of wharfage etc. are as per
the current scale of rate published by the Port Trust authorities.
(iii) Check of demurrage charges.—Demurrage charges
normally become payable due to one of the following reasons :—
(a) Non receipt of shipping documents.
(b) Short-supply, non-supply or delayed supply of
wagons.
(c) Customs formalities, etc
(d) Failure to clear in time.
In the Accounts Office the payment of demurrage charges should be carefully
checked with reference to the contract conditions before admitting liability.
Claims/Bills for payment of demurrage charges should clearly show the liability
of the Railway and the reaosns therefore.
In cases whether the charges have to be recovered from the
clearing Agents or the suppliers separate registers should be maintained by the
Accounts office and the recoveries are watched Where the demurrage charges have
been contested or appealed agaist, the recoveries should be pursued.
Claims for Short Landing :
Claims for the items short landed should be preferred by
the Controller of Stores in consultation with the Stores Accounts Officer, in
respect of missing (or damaged) consignments. Necessary bills should be
prepared by the Stores Accounts Officer on the basis of Advice received from
Controller of Stores. A manuscript Register should be maintained by the
Accounts Office to which the settlement of these claims. The Register should be
reviewed monthly by the Stores Accounts Officer.
2832. Port Trust
Bills.—Rates should be checked with reference to the schedules of Rates of the
Port Trust concerned.
BILLS PAID THROUGH BOOK ADJUSTMENTS
2833. The debits
are raised through :—
(i) transfer certificates in the case of other
railways.
(ii) exchange accounts, if the supplies or service are by
government departments, other than railways.
2834. Debits by
Foreign Railways.—Foreign Railway Transfer Certificates should be subject to
the same checks as for bills, before they are accepted and journalised.
2835. Exchange
Accounts.—The bulk of the expenditure debited through exchange account is for
the purchases arranged through the Directorate General of supplies and
Disposals or for supplies of stationery and printing stores by the Controller
of Printing and Stationery India.
2836. Purchase
through the Directorate General of Supplies and Disposals.—Purchases other than
stationery effected through the Directorate General of Supplies and Disposals
are dealt with for accounting purposes in the same manner as those made by the
Controller of Stores, with this difference, that the bills are not paid by the
Railway but by the pay & Accounts Officer, Directorate General of Supplies
and Disposals and debits are raised by the latter against the Accounts Officer
of the Meriting Officer concerned through exchange accounts. The duplicate
copies of the bills will be received in support of the debit. On receipt of
such debits, the bills should be posted in the Purchase Ledgers as debits to
the firm. The transactions should then be journalized by crediting 'Reserve
Bank Suspense', by Debit to 'purchases'. These debits will be in adjustment of
the items previously credited to the Purchases Account by debit to 'Stores' on
receipt, of the Receipt Note (Part III) from the Controller of Stores. A
separate set of Purchase Register should be maintained for purchases made
through the Directorate General of Supplies and Disposals and the outstanding
items to this set of registers should be analysed at the end of each month and
agreed with the General Books.
2837. Percentage
Charges.—The Directorate General of Supplies and Disposals levies departmental
charges for the following services rendered at rates laid down from time to
time
(i) Stores purchased through the agency of the Directorate
General of Supplies and Disposals :—
(a) Purchase.
(b) Inspection.
including all sampling and testing before the contract is
concluded and also where necessary, sampling and testing during the currency of
the contract.
(ii) Stores purchased direct by Controller of Stores.—The
charges for analysis and test of chemicals and other stores and for inspection
and testing of purchases not made through the Directorate General of Supplies
and Disposals carried out at the Government Test House, the Metallurgical
Inspectorate or any other organisation under the Inspection Branch of the
Directorate General of Supplies and Disposals and for advisory and
miscellaneous work will be in accordance with the 'Schedule of charges for
testing and inspection work done by the Disectorate General of Supplies and
Disposals for the Army Department, Commercial Department and undertaking of the
Central Government, all departments under the Provincial Governments, State and
Company managed Railways, Indian States and Quasi-Public bodies,' (Copies of
the schedule are obtainable from the Manager of Publications, Central
Publication Branch, Delhi).
The Officer-in-charge of the inspection or testing
organisation will, as soon as the work is completed prepare a voucher showing
the value of work done and forward it in triplicate to the railway concered,
which will countersign and return two copies to such officers and retain one
copy for record. At the end of the month, the officer-in-charge of the
inspection or testing agency will send the accepted vouchers to the Pay &
Accounts Officer Directorate General of Supplies and Disposals for
adjustment.
The charges referred to in (i) and (ii) above should be
verified and adjusted in accordance with paragraph 2164.
2838. Supplies of
Stationery, etc. by the Controller of Printing & Stationery.—The debits for
such supplies will be raised through the Exchange Accounts and should be dealt
with on the same lines as the debits for purchases through the Directorate
General of Supplies and Disposals.
2839. Printing
and binding work done by the Controller of Printing & Stationery.— Debits
for any such work will be raised on the basis of statements prepared for 4,6,
8,9,10 and 12 months i.e. in the exchange accounts for July, September,
November, December, January, March and March final, so that the control over
expenditure and the framing of revised and budget statements, etc. will not be
affected in any way. They should be dealt with on the lines, mutatis mutandis,
as the debits for supply of stationery, etc.
2840. Deleted.
2841. In
accounting for the purchases of stores, from abroad the books of account in
India have to show the progress of the transaction, i.e.
(a) payment for the purchases.
(b) the actual receipt of the stores by the indenter in
India.
2842. The normal
procedure for the accountal of these phases of the transaction is as follows
:—
(a) The payments debited to the suspense head of account
'Purchases Imported Cap. P. 7110' by credit to the head of account
"Transfer Railway-Secretary, Railway Board, Accounts" in the case of
book adjustment or "Reserve Bank Suspense" where direct cash payments
are made including Letter of Credit.
(b) On the the actual receipt of the stores by the indentor
in India the suspense head of account 'Purchases Imported' Cap. P. 7110 is
credited by debit to the suspense head of account 'Capital 7100 Stores' or
other final heads of account under Capital or Revenue depending on whether the
materials are taken into stock in stores depots or are sent on directly for use
on works.
CONTROL OVER EXPENDITURE AGAINST PURCHASE GRANT
2862. Expenditure
Register.—A manuscript register (S. 2862) should be maintained for the purpose
of watching expenditure on stores purchased in India as against the allotment.
The allotments should be noted from the distribution of the sanctioned amount
under the various heads appearing in the Funds Register (S. 506). The
expenditure should be noted as regards cash payment through Abstracts of
Audited Bills and as regards expenditure for a month should be verified with
the debits to 'Purchases' in the General Books.
ACCOUNTAL OF EARNEST MONEY AND SECURITY DEPOSITS FOR TENDER
AND CONTRACTS
2863 Tenders and Contracts for making 'applies of stores
have under conditions of Tender or Contract to deposit earnest money or
security deposits for the due discharge of the obligations under taken by them.
The security may be either in cash or paper securities. Such moneys are held by
the Railway till the obligations are faithfully, satisfactorily and completely
discharged, when the sums are refunded to the parties concerned. The rules for
the accounts! of such securities are prescribed in the State Railway Account
Code.
Multiple choice questions:
- How are liabilities incurred in connection with
receipts of stores discharged?
a)
By direct payment only
b) By book adjustments only
c) Either by direct payment or by means of book adjustments
d) Through external bank transfers
Answer:
c) Either by direct payment or by means of book adjustments
- Which of the following is NOT a type of direct payment?
a)
Purchases arranged by the Controller of Stores
b) Supplies of timber
c) Payment for services of Railway staff
d) Customs duty on imported stores
Answer:
c) Payment for services of Railway staff
- What is checked first in the procedure for direct
payments?
a)
Receipt Notes
b) Purchase Orders
c) Purchase Account Registers
d) Supplier's bank statements
Answer:
b) Purchase Orders
- What must be verified on the Purchase Orders?
a)
Continuity in the number of Purchase Orders
b) Shipping insurance details
c) Supplier's tax identification number
d) Delivery date
Answer:
a) Continuity in the number of Purchase Orders
- What should be done if a Purchase Order is found to be
missing in sequence?
a)
Ignore it and proceed with the next order
b) Report the missing numbers to the Controller of Stores
c) Cancel the Purchase Order
d) Reissue the missing Purchase Order
Answer:
b) Report the missing numbers to the Controller of Stores
- What document usually follows after the Receipt Note in
the payment process?
a)
Supplier’s invoice
b) Purchase Order
c) Bill of supply
d) Freight receipt
Answer:
c) Bill of supply
- What should be done if the Receipt Note contains
overwritten figures?
a)
Accept the figures as correct
b) Return the Receipt Note to the supplier
c) Verify and correct the figures before processing
d) Disregard the Receipt Note
Answer:
c) Verify and correct the figures before processing
- What should be recorded in the Purchase Account
Register?
a)
Only payments made
b) Only Purchase Orders issued
c) Both credits and debits for each transaction
d) Supplier’s contact information
Answer:
c) Both credits and debits for each transaction
- When are debit balances in the Purchase Account
Register permissible?
a)
At all times
b) Only for advance payments to suppliers
c) When the supplier has defaulted on delivery
d) When payment is made in advance of receipt of stores and the supplier is
well-known
Answer:
d) When payment is made in advance of receipt of stores and the supplier is well-known
- What should be done if a bill is received without
corresponding credit in the Purchase Account Register?
a)
Pass the bill for payment immediately
b) Keep the bill pending until credit is received
c) Send the bill back to the supplier
d) Ignore the bill
Answer:
b) Keep the bill pending until credit is received
- What should be verified in a supplier's bill before
passing it for payment?
a)
Only the supplier’s address
b) The bill’s format and correctness of rates and quantities
c) The supplier's stock levels
d) The supplier's previous payment history
Answer:
b) The bill’s format and correctness of rates and quantities
- What happens if there is a debit balance in the
Purchase Account Register due to advance payment?
a)
It should be ignored
b) It should be investigated and cleared by debiting ‘Stores’ upon
acknowledgment
c) The account should be closed
d) The debit balance should be recorded in a separate register
Answer:
b) It should be investigated and cleared by debiting ‘Stores’ upon
acknowledgment
- Who should sign the Receipt Note Part II?
a)
The Accounts Officer
b) The supplier’s representative
c) The Officer authorized to receive the stores
d) The Storekeeper
Answer:
c) The Officer authorized to receive the stores
- What action should be taken if a bill does not match
the details in the Purchase Order?
a)
Approve the bill with a note of discrepancy
b) Return the bill to the supplier for correction
c) Process the bill anyway
d) Disregard the Purchase Order
Answer:
b) Return the bill to the supplier for correction
- What should be done at the end of each month regarding
the Purchase Account Register?
a)
Conduct a review of pending bills
b) Prepare an abstract summarizing debits, credits, and balances
c) Send all records to the supplier
d) Archive the registers for the year
Answer:
b) Prepare an abstract summarizing debits, credits, and balances
- Who is responsible for examining each bill to ensure
that all prescribed checks have been applied and that the audit
enfacements are correct?
- A) Stores Accounts Officer
- B) Section Officer
- C) Cashier
- D) Clearing Contractor
Answer: B) Section Officer
- In cases of risk purchases, what should the Receipt
Note Part III be valued at if an article is purchased at a higher rate
than the contract rate?
- A) At the higher rate paid
- B) At the original contract rate
- C) At the average market rate
- D) At the rate determined by the auditor
Answer: B) At the original contract
rate
- What should be done with the amount paid in excess of
the original contract rate if recovery from the defaulting contractor is
effected before payment?
- A) Debited to miscellaneous advances
- B) Credited to deposits
- C) Added to the general fund
- D) Written off as a loss
Answer: B) Credited to deposits
- What is the maximum number of days within which a bill
should ordinarily be disposed of in the Accounts Office?
- A) Two days
- B) Three days
- C) Four days
- D) Five days
Answer: C) Four days
- When a bill is paid, what should be recorded in the
Register of Bills?
- A) Date of receipt of the paid bills
- B) Amount of the bill paid
- C) Name of the person who approved the bill
- D) Vendor details
Answer: A) Date of receipt of the
paid bills
- What should be maintained to record the particulars of
bills checked and the results of the check by the Section Officer?
- A) Purchase Register
- B) Abstract of Audited Bills
- C) Manuscript Register
- D) Register of Bills Received
Answer: C) Manuscript Register
- Which document is NOT typically required when making
payments for direct purchases from abroad?
- A) Foreign Supplier’s invoice
- B) Bill of lading
- C) Certificate of compliance
- D) Marine insurance policy
Answer: C) Certificate of compliance
- What should be done if the internal check reveals
defects in shipping documents after payment has been made?
- A) Refund the amount and resolve issues with the
supplier
- B) Inform the bank to credit the Railway’s account with
the Reserve Bank of India
- C) Pay additional charges to cover discrepancies
- D) Ignore the defects and proceed with current
transaction
Answer: B) Inform the bank to credit
the Railway’s account with the Reserve Bank of India
- What should be checked with reference to the Indian
Customs Tariff for Customs Duty Bills?
- A) Rates charged
- B) Quantity of goods
- C) Shipping cost
- D) Vendor’s registration number
Answer: A) Rates charged
- In the case of refund of Customs Duty, what should be
credited to the cost of imported stores when a refund materializes?
- A) Claims for short landing
- B) Refund for wrong rates or classification
- C) Charges for demurrage
- D) Commission charges
Answer: B) Refund for wrong rates or
classification
- What should be checked for clearing contractor’s bills
related to imported stores?
- A) The rate of interest charged
- B) Quantities or weight with respective vouchers
- C) Vendor’s credit rating
- D) The current stock levels
Answer: B) Quantities or weight with
respective vouchers
- For payments made through book adjustments, which
account is debited in the case of supplies or services by government
departments?
- A) Reserve Bank Suspense
- B) Exchange Accounts
- C) Transfer Railway-Secretary, Railway Board, Accounts
- D) Miscellaneous Advances
Answer: B) Exchange Accounts
- When dealing with debits for purchases arranged through
the Directorate General of Supplies and Disposals, how should the
transactions be journalized?
- A) Credit to 'Reserve Bank Suspense', Debit to
'Purchases'
- B) Debit to 'Purchases', Credit to 'Reserve Bank
Suspense'
- C) Debit to 'Stores', Credit to 'Reserve Bank Suspense'
- D) Credit to 'Purchases', Debit to 'Stores'
Answer: A) Credit to 'Reserve Bank
Suspense', Debit to 'Purchases'
- What should be maintained to watch expenditure on
stores purchased in India against the allotted budget?
- A) Manuscript Register
- B) Expenditure Register
- C) Purchase Register
- D) Payment Abstracts
Answer: B) Expenditure Register
- How should earnest money or security deposits for
tenders and contracts be accounted for?
- A) As cash receipts
- B) As paper securities
- C) In a separate security deposit register
- D) According to State Railway Account Code rules
Answer: D) According to State
Railway Account Code rules
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