Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-26 (XXVI)
CHAPTER XXVI
RECONCILIATION OF PRICED LEDGERS WITH GENERAL BOOKS
2601. A reconciliation should be effected of the debits,
credits and balances in the Priced Ledgers and the corresponding figures in the
General Books of the Railways.
2602. With the introduction of Electronic; Data Processing, the
reconciliation is done by listing up the entries in the Priced Ledgers monthly,
as regards receipts, issues and balances and comparing these figures thus
obtained with those available in the financial accounts. The method that should
be adopted is set out in Paragraph 2604 et. seq. and the reconciliation is
effected in two stages :
(i) A monthly reconciliation of receipts, issues and balances in Priced Ledgers
as per consolidated group wise and category wise summary (without details for
individual Priced Ledgers) with those in General Books through Group Ledgers;
and
(ii) An annual reconciliation of total receipts, total issues and the balances
in the Priced Ledgers (both opening and closing) with those in General Books
through the medium of Group Ledgers,
2603. The above stages are illustrated by the accompanying
diagram.
2604. Deleted.
2605. Separate sets of Group Summaries should be maintained for
each of the detailed divisions of receipts and issues as illustrated by the
chart below showing the total receipts and the total issues GroupWise and
categorywise :
The chart above shows the divisions and
sub-divisions of 'Ordinary Stores' only. Other categories will be divided into
divisions and sub-divisions similar to Ordinary Stores as required.
2606. The Group Summary for purchases in India should have
columns to show under each group the value of 'IMPORTED STORES PURCHASED IN
INDIA' separately from the value of 'STORES OF INDIAN MANUFACTURE OR
INDIGENOUS ORIGIN'
2607. The several divisions and sub-divisions of receipts and
issues are necessary :
(a) To enable the Controller of Stores and the Depot Officers to exercise
proper control over their stocks;
(b) To prepare the consolidated journal slip as per revised classifications;
and
(c) For the correct preparation of the Annual Statement of Stores Transactions
(S. 3001) and the Annual Statement of Expenditure on Purchases (S. 2943) for
submission to the Railway Board.
2608. Totals of the postings under each group summary should be
struck for each fortnight/month as may be fixed by the General Manager.
2609. Monthly Abstract of Group Summaries.—The totals for each
period under each group, a group summary should be posted periodically in
following form in order to abstract together the transaction for a month under
each division and sub-division of stores as shown in the chart in Paragraph
2605 above. A cross total should be struck for each period.
2610. Deleted.
2611. The vouchers for the period which will form the
record of the Accounts Office should after being processed, be carefully
arranged group by group and filed properly,
2612. Deleted.
2613. Deleted.
2614. No Departmental Summary of Receipts or Issue (S. 2702
or S. 2705) should be sent out of departments without the
reconciliation's with the Group Summary for the period having been carried on
or the transactions of the period to which the debits or credits summaries
relate. If there is any discrepancy, the Departmental Summaries of Issues and
Receipts for the period should not be despatched before the error or errors are
traced and set right.
2615. As soon as the postings for a month has been
completed, the annual abstract of Class Summaries in Form S. 2615 styled Annual
Abstract of Group Summary, showing the details of transactions group wise and
month wise, should be prepared. The form of register will be similar to form
(S. 2608) except that, instead of the period, the months only will be shown in
the first column.
2616. Subsidiary Group Ledgers.-—A separate Group Ledger
should be maintained in the following form for each category and quality of
stores. This should be prepared each month from the several Monthly Abstracts
of Group Summaries relating to the category of stores. The opening balance for
the month under each group should be brought forward from the Subsidiary Group
Ledger for the previous month. This Ledger should be maintained manually by the
Priced Ledger Section and filled up from the Monthly Abstract of Group Summary
or Subsidiary Group Ledger furnished by the Computer Section.
2617. Depot Group Ledgers.—These should be prepared from
the Subsidiary Group ledgers for each category of stores (only) in Form S. 2617
(which will be Similar to S. 2616) the opening balance being , however, brought
forward from the Depot Group Ledger for the previous month The total of the
column for receipts and issues should be reconciled with the grand total for
the month appearing in the Monthly Abstract of Departmental Summaries of
Receipts and Issues (S. 2706 respectively). If the Controller of Stores desires
it, the Depot Group Ledgers with supporting Subsidiary Group Ledger for each
category and quality of stores should be furnished to each Depot Officer
concerned for his guidance.
Note :—In the case of Local Accounts Offices
attached to each Stores Depot, a copy of the Depot Group Ledger (S. 2617)
supported by copies of Subsidiary Group Ledger (S. 2616) for each category and
quality of stores should be ser t to the Headquarters to Stores Accounts Office
by the 12th of the following month to enable the preparation of the
Consolidated Group Ledger (S. 2618) for the entire line for submission to the
Controller of Stores on the 15th of the month.
2618. A consolidated Group Ledger (S. 2618) for the entire
line should be prepared from the Group Ledgers for the Depots (S. 2617) in a
form similar to S. 2617 and supported by the Depot Group Ledgers should be
furnished to the Controller of Stores on the 15th of the following month.
2619. Reconciliation with General Books.—The total figures
of receipts and issues in the Consolidated Group Ledger (S. 2618) should be
reconciled with the total debits and credits to "Stores" (vide
paragraph 2707) in the Stores Journals and in the General Books of Accounts of
the Railway.
2620. Reconciliation of Monthly Closing Balances.—The
General Books will show for each suspense head of capital account the balances
brought forward ab-initio. The closing balance under the head 'Stores' will be
reconciled with the closing balance appearing in the Consolidated Group Ledger
(S. 2618). If this agrees, it may be generally assumed that the closing
balances in the General Books agree with the balances as represented by the
priced ledgers. This does not, however, take into account any errors of
compensating nature and cannot be a substitute for proving that the totals of
the balances as extracted directly from the priced ledgers would agree with the
corresponding figures in the financial accounts. For this purpose, a statement
showing the totals of opening balance, totals of receipts, totals of issues and
totals of closing balances for each group should be prepared from the
transactions posted in the priced ledger. This statement should also give the
totals for each group, category and the grand totals for the depot. The figures
in ihe statements 'Sectional Group and Category wise summary for the depot from
the priced Ledgers' should be reconciled with the depot group letters, la the
event of any discrepancy, a detailed list of transactions should be called for,
if so required, and a detailed item by item check of the summary with the
priced ledgers should be done and errors rectified.
2621. A certificate of the reconciliation with the
General Books should be endorsed by an Officer of the Books Section on a copy
of the Consolidated Group Ledger (S. 2618) and recorded in the Stores Accounts
Section.
2622. Use of the Group Ledgers by the Executive.—The
Controller of Stores and each Depot Officer should maintain charts upon which
the monthly closing balances for the entire depot and for important groups and
categories of stores should be plotted up to date, from the Consolidated or
Depot Group Ledger and Subsidiary Group Ledgers received from the Stores
Accounts Office. The chart for 'Ordinary Stores' in the Controller of Stores
office should also contain a graph representing 40 per cent of the issues of
the previous twelve months, which should be kept upto date. This line is the
efficiency mark with which the graph of the actual balances of 'Ordinary Stores'
of all depots should closely coincide and should generally not exceed. The
amount representing 40 per cent of the annual issues is the authorised Stores
Balance fixed by the Railway Board.
2623. Annual Reconciliation of the Priced Ledgers.—During the
course of the monthly reconciliation, the totals for each group (i.e. opening
balance, receipts, issues and the closing balance) is reconciled with the
balances in the General Books. However, at the end of financial year, a group
wise and category wise summary is prepared for purposes of record indicating
the details of opening balance, receipts, issues and closing balance for the
year and is reconciled with the General Books figures.
2624. Deleted
2225- Deleted
2626. Deleted
2627. Deleted
2628. Reconciliation Procedure.—The total of the sectional
lists of balances of the priced ledgers prepared by the Computer Centre should
then be compared with the closing balance appearing under the group in question
in the Subsidiary Group Ledger (i.e. for the category and quality of stores
concerned). Thus, when the list of balances of priced ledgers of each group for
each category, has been reconciled with the Subsidiary Group Ledger for the
category, it may be rightly regarded thzt the priced ledgers have been proved
with the General Books provided, of course, the balances for March in the
Consolidated Group Ledger had agreed with the General Books as laid down in
paragraph 2619.
2629. Deleted
2630. Deleted
2631. Deleted
2632. If the difference is heavy, it should be
investigated. Differences which cannot be traced in spite of all investigation
and efforts may be allowed to be adjusted against the Stock Adjustment Account
under the procedure laid down in paragraph 2634-S, provided that further
expenditure on staff and processing for the settlement of the discrepancy will
be disproportionate to the amount involved. Such adjustments against the Stock
Adjustment Accounts should be currently reported to the General Manager as
provided for in the Note under paragraph 2742-S.
2633. Procedure of Adjustment of Discrepancies.—After the
reconciliation has bsen effected the incorrect entries in the ledgers should
not be corrected, a note in a separate register should be maintained showing
the date of occurrence of the discrepancy and the date of correction of the
mistake.
2634. After the reconciliation of a group of stores has been
completed, the manuscript register (S. 2631) should be put up to the Stores
Accounts Officer for orders of adjustment against each item. The total
difference in the group that are thus approved for adjustment should be posted
in a Group Summary (S. 2604) and the Stock Adjustment Register.
2635. Responsibility for Errors.—During this reconciliation
a note should be kept of every error discovered and all errors should be traced
to the persons responsible for the same. A report of all such mistakes should
be put up to the Officer for information as soon as the reconciliation of each
group has been completed.
Multiple choice questions:
1.
What is the main purpose of reconciling the Priced Ledgers with the General
Books of the Railways?
- A) To update the price list
- B) To ensure the accuracy of debits, credits, and
balances
- C) To prepare a budget
- D) To issue stock adjustment vouchers
Answer: B) To ensure the accuracy of debits, credits, and balances
2.
With the introduction of Electronic Data Processing, how is the reconciliation
of the Priced Ledgers done?
- A) Manually
- B) By listing up the entries monthly
- C) Quarterly
- D) Annually
Answer: B) By listing up the entries monthly
3.
In the reconciliation process, what is compared with the figures available in
the financial accounts?
- A) Group summaries
- B) Individual transactions
- C) Monthly abstracts
- D) Entries in the Priced Ledgers
Answer: D) Entries in the Priced Ledgers
4.
What are the two stages of reconciliation?
- A) Quarterly and annually
- B) Monthly and annually
- C) Weekly and monthly
- D) Daily and weekly
Answer: B) Monthly and annually
5.
What should be maintained separately for each detailed division of receipts and
issues?
- A) Annual statements
- B) Monthly abstracts
- C) Group summaries
- D) Departmental summaries
Answer: C) Group summaries
6.
Why are several divisions and sub-divisions of receipts and issues necessary?
- A) To enable proper control over stocks
- B) To prepare the consolidated journal slip
- C) For the correct preparation of annual statements
- D) All of the above
Answer: D) All of the above
7.
When should the monthly abstract of group summaries be posted periodically?
- A) Quarterly
- B) Fortnightly/monthly
- C) Weekly
- D) Annually
Answer: B) Fortnightly/monthly
8.
What is the form used for the annual abstract of class summaries?
- A) S. 2608
- B) S. 2615
- C) S. 2616
- D) S. 2617
Answer: B) S. 2615
9.
What should the subsidiary group ledger be maintained for?
- A) Each department
- B) Each depot
- C) Each category and quality of stores
- D) Each financial year
Answer: C) Each category and quality of stores
10. Who should receive a copy of the Depot Group Ledger
supported by copies of Subsidiary Group Ledger?
- A) General Manager
- B) Controller of Stores
- C) Headquarters to Stores Accounts Office
- D) Depot Officers
Answer: C) Headquarters to Stores Accounts Office
11. When should the consolidated Group Ledger for the entire
line be prepared?
- A) By the 10th of the following month
- B) By the 15th of the following month
- C) At the end of each quarter
- D) Annually
Answer: B) By the 15th of the following month
12. How is the reconciliation with General Books done for the
total figures of receipts and issues?
- A) By comparing with the total debits and credits to
"Stores"
- B) By reviewing individual transactions
- C) By preparing annual statements
- D) By verifying with departmental summaries
Answer: A) By comparing with the total debits and credits to
"Stores"
13. What should be done if the closing balance in the General
Books agrees with the balance in the Consolidated Group Ledger?
- A) Assume all balances in the General Books agree with
the Priced Ledgers
- B) Conduct a detailed check of all transactions
- C) Adjust the discrepancies immediately
- D) Prepare a new reconciliation report
Answer: A) Assume all balances in the General Books agree with the
Priced Ledgers
14. What should be plotted on the charts maintained by the
Controller of Stores and Depot Officers?
- A) Monthly closing balances
- B) Annual budgets
- C) Stock adjustment vouchers
- D) Daily transaction summaries
Answer: A) Monthly closing balances
15. What represents the efficiency mark on the chart for
'Ordinary Stores'?
- A) 20% of the issues of the previous twelve months
- B) 30% of the issues of the previous twelve months
- C) 40% of the issues of the previous twelve months
- D) 50% of the issues of the previous twelve months
Answer: C) 40% of the issues of the previous twelve months
16. What is the purpose of the annual reconciliation of the
Priced Ledgers?
- A) To reconcile individual transactions
- B) To indicate the details of transactions for the year
- C) To prepare a budget
- D) To issue stock adjustment vouchers
Answer: B) To indicate the details of transactions for the year
17. What should be compared with the closing balance in the
Subsidiary Group Ledger for the category and quality of stores concerned?
- A) Total of sectional lists of balances of the priced
ledgers
- B) Monthly abstracts
- C) Departmental summaries
- D) Financial accounts
Answer: A) Total of sectional lists of balances of the priced
ledgers
18. If a discrepancy cannot be traced despite all
investigations, what should be done?
- A) Ignore the discrepancy
- B) Adjust against the Stock Adjustment Account
- C) Report to the General Manager
- D) Conduct a detailed item by item check
Answer: B) Adjust against the Stock Adjustment Account
19. What should be maintained to show the date of occurrence
and correction of discrepancies?
- A) Annual statements
- B) Reconciliation report
- C) A separate register
- D) Monthly abstract
Answer: C) A separate register
20. Who is responsible for tracing and reporting all errors
discovered during reconciliation?
- A) Accounts Officer
- B) General Manager
- C) Controller of Stores
- D) Persons responsible for the errors
Answer: D) Persons responsible for the errors
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