Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-29 (XXIX)
CHAPTER
XXIX
TRANSFER TRANSACTIONS, STORES JOURNAL FINAL AND ACCOUNTS
2901. Heads of
Accounts,—The following heads of Accounts under "Capital" and
'Revenue' are generally operated upon the accounts books of the Stores Accounts
Office which is mainly concerned with the accountal of transactions connected
with 'Stores'.
2902. Capital.—Major
Head—67A—Construction of State Railways-(Commercial) and 67B Construction of
State Railways—(Strategic).
Minor Head—71 Stores Suspense and 73 Miscellaneous advances
Sub-beads :
7110—Purchases Imported
7120—Purchases Indigenous Purchase by Railways including
Railway Board.
7130—Purchases through Centralised Agencies such as DGS
& D, etc,
7140—Sales other than Fuel
7150—Sales (Fuel).
7160—Stores.
7170—Stores-in-Transit
7180—Stock Adjustment Account.
7190—Stock Adjustment Account—Other items
2903. For
facility of reference and reconciliation with the connected subsidiary
registers and accounts, the Head 'Stores' is divided into the following
sub-heads and detailed heads and sub-detailed heads.
2904. Revenue.—The
following are the heads of accounts under Revenue : Working Expenses :
(i) Revenue Abstracts
(ii) Miscellaneous Advances
(iii) Deposits-miscellaneous
(iv) Transfers-Divisional
(v) Transfers-Railways.
2905. Transactions
of receipts or payments in cash are accounted for in the following manner. In
the case of moneys due to the railway, bills or other demands for payment are
presented by the Railway to the parties concered, and the money is paid into
Station booking offices, or to the Treasurer of the Railway. In such cases of
receipts of cash, the foils of Miscellaneous Cash Remittance Notes or other
cash receipts given by the treasurers show the particulars of service or stores
paid for and the allocation; all such cash transactions should be posted (in
Part II) of the Journal, by credit to 'Sales', etc., and debit to Transfers
Revenue'. The Journal is posted from the journal slips, the account registers
for the heads of accounts credited being posted directly in detail from the
receipts for cash. In the case of payments by the Railway of cash for supplies
or services, the Abstracts of Bills show the details of allocation for such
payments. The Journal is posted directly from these abstracts, the supporting
accounts registers being posted directly from bills and the vouchers in support
thereof.
Note.—In case of Railways, other than Open Line Railways,
where the Capital Heads are alone operated, the Head 'Transfers Revenue' will
not be operated.
2906. Adjustments
on account of transactions between the Stores Department and other departments
of the same railway are generally carried out internally in the Accounts
Office, while those with other Railways are carried out through (Transfer
Certificates'. Adjustments with other Government Departments are carried out
through either the 'Exchange Accounts' or 'Cash Payments'.
2907. Transfer
Certificates.—Transactions not involving the actual receipt or payment of cash
relating to other divisions and branches (if the transfer certificate'
procedure is adopted for internal adjustments) or other railways will be passed
on to the party concerned through transfer certificates, which for facility of
reference are called 'Local Transfer Certificates' or 'Advices of transfer
debits or credits' in the case of transfers relating to the divisions or branches
of the home railway, and 'Foreign Transfer Certificates' in the case of those
relating to other railways.
2908. Local
Transfer Certificates.—The adjustments in connection with the local transfer
certificates will be carried out by employing a system of minus adjustments,
i.e. the division or branch originating the transaction debits or credits to
the head Transfers-Divisional which is accepted by the responding party by a
minus debit or minus credit against the above head. The main idea underlying the
above system is that the transactions under the head "Transfer Divisional'
for the whole line for a particular month should be nil, unless, of course,
there remains certain local transfer certificates unadjusted, at the end of the
month. In the case of foreign transfer certificates the creditor foreign
railway always raises a debit against the debtor railway, which is accepted by
the latter by contra credit against the transfer head.
2909. Local
transfer certificates will be issued from and received in the Stores Accounts
office direct, while foreign transfer certificates will be dealt with
exclusively in the Book Section of the Headquarters Accounts office. The
various processes relating to these are described in paragraphs 2910 to 2917.
2910. Signing of Transfer Certificates.-—Transfer
Certificates may be signed by the Section Officer of a section, provided they
are supported by bills or vouchers assigned by a Gazetted Officer, in other
cases they should be signed by a Gazetted Officer. Similarly, the acceptance of
the transfer certificates received from the various offices should be signed by
a Gazetted Officer unless supported by a bill or voucher duly accepted by a
Gazetted Officer, in which case the acceptance on this transfer certificate can
be signed by the Section Officer.
2911. Date up to
which Transfer Certificates may be issued.—All transfer certificates should be
issued up to a date not later than the 12th of the following month, as the
Transfer Certificate received in the office against whom it is issued after the
13th will be responded to in the next month's accounts, thus increasing the
outstanding at the end of the month under the head
"Transfers-Divisional".
2912. Acceptance
of Transfer Certificates in full.—All transfer certificates should be accepted
in full; but if the entire amount of any transfer certificate does not relate
to the office again-which it is issued, it should be returned unaccepted under
the signature of a Gazetted Officer.
2913. Transfer
Certificates Registers.—To watch the proper disposal of the transfer
certificates issued and received, two manuscript registers should be maintained
one each for outward and inward transfer certificates, the following forms,
separate pages being allotted for each division, branch or section concerned.
2914. Schedule of
Transfer Certificates.—After the issue of all transfer certificates for the
months for which the last date is the 12th of the following month, a
consolidated schedule (Form S. 2914), showing the transfer certificate No. and amount,
separately for debit and credit, for all transfer certificates issued against
each section, division and branch should be prepared and issued. These
schedules arc of importance in the reconciliation of the head 'Transfers—
Divisional, Branches or Section' and should be very carefully prepared. The
Transfer Certificates from other offices should be carefully scrutinized,
before being returned.
2915. These
schedules should be returned to the issuing office by about the 18th of the
following month to which they relate, and in case of non-receipt of accepted
schedules, telegraphic reminders should be issued so that the transactions
relating to a month may be duly accounted for in the same month's accounts.
2916. Adjustment
with Foreign Railways.—In case it is desired to issue a transfer certificate
against a foreign railway, the relevant voucher or, in the case of cash payment
or recovery, a bill (quoting reference to the authority) along with the
necessary certificate should be sent to the Book Section with a memo showing
the allocation against the amount to be adjusted in the Stores Accounts Office.
The Book Section, on receipt of the acceptance by the railway concerned, will
issue a memo intimating the fact, when necessary adjustments may be carried out.
Similarly the Book Section will send with a memo, any foreign railway transfer
certificates received by it for acceptance and the latter should be adjusted in
the Stores Accounts Office after necessary verification.
2917. The mema
received from the Book Section should be registered in the inward transfer
certificate register and their proper disposal watched by the Journal Keeper in
the same manner as in the case of inward transfer certificates.
2918. Adjustment
with Government Departments other than Foreign Railways.—All exchange accounts
with Civil, Military Postal and Telegraph Departments, where exchange account
facility is available, will be controlled by the Book Section. The items
pertaining to the various branches will be intimated to or by it through a mema
sent along with the necessary vouchers. These mema should also be registered in
the transfer certificates register and adjusted after due verification.
2919. In case it
is proposed to originate an entry under the above head, the Journal slip should
be prepared on the authority of a bill accepted by the officer against whom the
item, is adjustable.
2920. Summaries
of Transfer Adjustments.—Summaries of all transfer adjustments with other
railways, and accounting offices of the Civil, Military and Postal authorities
should be prepared and sent along with the consolidated Journal entry to the
Books Section. Reference should be quoted to the mema of the Book Section
through which the intimations for adjustment were received, and necessary
vouchers sent in support of adjustments originated by the Stores Accounts
Office.
2921. This record
should be kept in a form as shown below, to bring together the whole of the
debits and credits under the supense heads mentioned above.
2922. The journal
will be maintained in two parts with separate folios each month for each part.
Part I will collect all the transactions connected with the receipt of stores,
Part II with relate to the issue of stores. The following will be the nature of
Journal entries affecting each head of account in the Journal (vide Paragraphs
2902 to 2904).
2923. Purchases
Imported (Capital 7110).—The debit to the head will be through Advice of
Payments (received from the High Commission of India by credit to Transfers
Railways Secretary Railway Board) or the debit scrolls issued by Reserve Bank
of India or cash. This account will be credited through a Receipt Advice by
contra debit to P. 7160 'Stores in Stock'. If the consignee Railway happens to
be a foreign Railway, the debit to the head will be through a Foreign Transfer
Certificate.
2924. Purchases—(Capital 7120 and 7130).—The credit to
this head of account will be through a monthly Journal entry prepared from the
grand total of the Group Summary for Purchases (vide paragraph 2521 (a) in the
case of railways with decentralized inspection, or the grand total of the
summaries of credits to Purchases Account (vide paragraph 2808) in the case of
railways with centralized inspection, by contra debit to the head 'Stores in
Stock' (Capital 7160 (ai) or (bi) for the value of stores posted in priced
ledgers in the accounts of the same month, the balance appearing as a debit to
the head 'Stores-in-Transit'. The debit to head 'Purchase' will be through the
Abstracts of Audited Bills by credit to 'Cash' and through Transfer Vouchers
and Exchange Accounts, by credit to other railways and departments on account
of adjustments made on their bills.
2925. Deposits
Miscellaneous.—Besides the items appearing under the head as mentioned in
paragraph 2729, this head will be credited with the value of stores obtained on
loan from other Railways or Government departments by debit to 7160 'Stores'
and will be debited per contra, when the Stores are returned.
2926. Miscellaneous
Advances (Capital 7300).—This head will be debited with the value of stores
issued on suspense account by credit to 'Stores' and will be credited when the
stores are returned by debit to 'Stores' and will be credited when the stores
are returned by debit to 'Stores' or to the final heads of account.
2927. Sales
(Capital 7140 and 7150).—In the case of cash sales, auction sales or sales by
tender where the value of material sold by the Railway is received in advance
of actual issue of stores, the credit to this account will appear earlier than
the debit. The credit will be by debit to 'Cash'. In other cases, i.e. direct
or tender sales to other Railways or Government departments the debit will
appear first by credit to 'Stores' for the value of stores at the sale rates.
The credit will be received through Transfer Certificates or Exchange Accounts
by debit to the 'Transfer Railways'.
2928. 'Stores'
-(Capital 7160).—The transactions affecting this head are in respect of the
value of stores received or issued from a stores depot. The debits to this head
are by credit to the following heads, in addition to those already mentioned in
paragraph 2923 et seq.
(i) The 'Transfers—Workshops' on account of manufactured
articles supplied to store depots and also the value of stores returned to
depots.
(ii) To 'Transfers-Divisional' on account of stores
returned by departments to depots.
(iii) To Imprest Accounts (all categories) Engineering
Plant Account and Surplus Stores Account on account of Stores returned to the
Stores Depots.
(iv) To the Depot Transfer Account,
(v) To the Stock Adjustment Account.
Note.—All items that can be identified abilities chargeable
to Works for which separate Works Registers exist, should not pass through
'Stores in Stock' or any other Stores Suspense head and should be debited/credited
to final heads of account.
2929. The credit
to the head 'Stores' will be by debits to Transfers Workshops, Transfer
Divisional, the Depot Transfer Account, Store-in-Transit account and the
Imprest Account (all Categories), in addition to the heads of accounts already
mentioned in paragraphs 2923 to 2927.
2930. The Stock
Adjustment Account.—The debits and credits to this head of account will be
chiefly by contra adjustment to 'Stores' (Capital 7160) except in the case of
the adjustment against the Revenue Abstracts, in clearance of the half-yearly
balances under this head of account and also due to booking of petty
differences to this head vide paragraph 2547-S.
2931. The other
heads of accounts are self-explanatory.
2932. Journal Entry Slips.—Journal slips debiting or
crediting the various sub-heads of accounts noted above will be generally
prepared at the end of the month from the several suspense registers.
Miscellaneous debits and credits not emanating from any of the suspense
registers will be prepared from the original vouchers themselves. Separate
journal slips should be prepared for Capital and Revenue and signed by a
Gazetted Officer. They should then be numbered (separate series being allotted
each month to Capital and Revenue), and posted in the journal, Capital and
Revenue journal slips should be separately filed, month by month.
2933. Consolidated
Journal Slip.—The Journal keeper should satisfy himself, particularly with
reference to the entries regarding Transfers—Railway and Divisional, that all
the transactions of the month have been brought to account. The journal should
then be totalled and consolidated journal entries (one for Capital and the
other for Revenue) should be prepared. In preparing the journal entry,
transactions carried directly into the General Books, e.g. cash payments (on
receipts) for stores should be disregarded - Special care should be taken to
see that:
(i) the amounts shown as debit and credit against
'Transfers State Railway Revenue' in the Capital Account agree with those shown
as credit and debit against 'Transfers State Railway Capital' in the Revenue
Account;
(ii) the total amounts of debit and credit under
"Transfers, Divisional or Branches or Sections" agree with the
amounts as accepted by the sections and branches concerned through the monthly
schedules; and.
(iii) the amount shown as minus debit and credit against "Transfer
Stores", i.e. respond in entries for transfers originated by the
Divisions, branches, Sections agree with those accepted through their
schedules.
2934. The
consolidated journal entry will show only the totals of the debits and credits
to each head of account maintained in the Stores Journals.
2935. The journal
entries should be signed by the Stores Accounts Officer and forwarded to the
Book Section for incorporation in the accounts of the Railway.
2936. Subsidiary
Register for Capital Account.—The transactions relating to the Capital heads of
account for the 'month' and from the commencement of operations' should be
shown in the schedule of capital expenditure accompanying the monthly Capital
Account Current of the Railway submitted to the Railway Board.
2937. As the
heads of account operated upon in the Stores Accounts Office are mainly
suspense heads of account detailed headwise, it is necessary that the balances
under each detailed head are reconciled and proved with the General Books. For
this purpose, a subsidiary register should be maintained by the Book Section
for these detailed heads of account, in which should be shown opening balances,
debits and credits during the month, and the closing balances in the following
form. Separate pages should be opened in the register for each head of account
appearing in the Journal and a summary of each head of account prepared at the
end. The correctness of balances in this monthly summary should be certified by
the Book Section. Any discrepancy found as a result of its reconciliation with
the Book Section, if any, put up to the gazetted officer within 10 days of of
the close of the accounts for the month.
2938. Decentralised
Stores Accounts Offices.—When stores accounting has been decentralised, there
arises the need for such an office submitting a monthly statement of Stores
Transactions to the General Office in the form shown below. The form is
self-explanatory.
2939. The opening
and closing balances should agree with the balances appearing in the Depot
Group Ledger (S. 2617) for the month.
2940. The account
should be accompanied by such schedules as may be prescribed by the Chief
Accounts officer. The accounts of the various account offices should be
consolidated in the Head Office in the form shown below. The further procedure
of accountal will be on the same lines as laid down in the previous sections.
2941. Annual
Accounts.—The following annual accounts should be submitted by the Stores
Accounts Office to the Book Section on the prescribed dates :—
(a) Capital and Revenue Accounts.
(b) Finance Accounts. ,
(c) Appropriation Accounts.
Detailed instructions regarding the preparation of each of
the above accounts appear in the Accounts Department Code. Material in
connection with the preparation of (a) and (b) above is generally obtained from
records maintained in the Stores Accounts Branch itself. Whereas the
explanations for variations between the original grant and the final grant and
between the latter and the actual expenditure under the various sub-heads of
the Appropriation Accounts, will be framed in consultation with the executive,
if necessary. These should then be incorporated in the accounts submitted to
the Book Section. For this purpose statements showing the figures of the
original grant as compared with the final grant and the latter with the actual
expenditure, should be sent to the Controller of Stores or other executive
officer concerned, sufficiently in advance to admit of the accounts being sent
to the Book Section in time.
2942. Exhibition
of losses in the Accounts under the following heads :
(i) Physical losses;
(ii) Losses due to variation in prices;
(iii) Losses due to obsolescence and deterioration.
The physical Losses of stores will be generally speaking,
the shortages of stores discovered during verification of stocks. But all the
deficiencies of stock are not to be considered, ipso facto, physical losses.
The losses are generally attributed by the depots to the following reasons:
(a) Retail issues.
(b) Leakage, etc.
(c) Turn of scale.
Losses arising out of retail issues, or leakages are not
strictly speaking, physical losses though the former may partly be a physical
loss and as most of the losses will be due to (a) and (b), the entire amount
may be taken as physical loss. Clause (c) is, however, compensatory and losses
attributed to this cause only should not be classed as 'Physical losses'.
Losses under (ii) will be those shown under relevant detailed head of the Stock
Adjustment Account, Losses under (iii) for which the Stores Department is
responsible will be shown under relevant detailed head of the Stock Adjustment
Account, and those for which other departments are concerned will be debited
them and will be accounted directly by the Accounts Officers concerned to the
Book Section of General Branch, where they will be consolidated. While
scrutinizing the explanations given on stock sheets, Inspectors of Stores
Accounts or Stock Verifiers should keep note of all physical losses of stores
and submit an annual statement to the Stores Accounts Officer by the 30th April
each year.
2943. Annual
Statement of Expenditure on Stores,—A return showing the value of stores
purchased every year should be compiled in the form shown below and submitted
to the Railway Board by the 25th May of the year following the one to which the
statement relates :
2944. The return
should show separately the value of stores imported direct, the value of
imported stores purchased in India and the value of stores of Indian
Manufacture or of indigenous origin.
2945. The figures
required for this return should be compiled in the Accounts Office from the
Annual Abstract of Group Summaries (S. 2615).
2946. At the end
of the year a specimen copy of the return should be sent to the departments
which make direct purchase for submission of a similar return showing the value
of stores purchased by them during the year. The figures should be added to the
value of stores shown in the registers maintained by the Stores Accounts
Officer for exhibition in the return. This return should be accompanied by a
review explaining the causes of important variations under any head compared
with the previous year.
Multiple choice questions:
1.Which major head of account is
used for the construction of state railways for commercial purposes?
- A) 67A - Construction of State Railways (Commercial)
- B) 67B - Construction of State Railways (Strategic)
- C) 71 - Stores Suspense
- D) 73 - Miscellaneous Advances
Answer: A) 67A - Construction of
State Railways (Commercial)
2.Under the capital accounts,
which sub-head covers purchases through centralized agencies such as DGS&D?
- A) 7110 - Purchases Imported
- B) 7120 - Purchases Indigenous
- C) 7130 - Purchases through Centralized Agencies
- D) 7140 - Sales other than Fuel
Answer: C) 7130 - Purchases through
Centralized Agencies
3.What is the head used for
recording sales of fuel?
- A) 7140 - Sales other than Fuel
- B) 7150 - Sales (Fuel)
- C) 7160 - Stores
- D) 7170 - Stores-in-Transit
Answer: B) 7150 - Sales (Fuel)
4.Which account head is used for
recording adjustments of stocks?
- A) 7180 - Stock Adjustment Account
- B) 7190 - Stock Adjustment Account—Other items
- C) 7120 - Purchases Indigenous
- D) 7130 - Purchases through Centralized Agencies
Answer: A) 7180 - Stock Adjustment
Account
5.What are the heads of revenue
accounts under Working Expenses?
- A) Revenue Abstracts, Miscellaneous Advances,
Deposits-miscellaneous
- B) Transfers-Divisional, Transfers-Railways, Sales
- C) Revenue Abstracts, Miscellaneous Advances,
Deposits-miscellaneous, Transfers-Divisional, Transfers-Railways
- D) Purchases Imported, Purchases Indigenous, Sales
(Fuel)
Answer: C) Revenue Abstracts,
Miscellaneous Advances, Deposits-miscellaneous, Transfers-Divisional,
Transfers-Railways
6.How are receipts of cash due to
the railway recorded in the journal?
- A) Credit to 'Sales' and debit to 'Transfers Revenue'
- B) Debit to 'Sales' and credit to 'Transfers Revenue'
- C) Credit to 'Transfers Revenue' and debit to 'Sales'
- D) Debit to 'Cash' and credit to 'Transfers Revenue'
Answer: A) Credit to 'Sales' and
debit to 'Transfers Revenue'
7.What is the purpose of Local
Transfer Certificates?
- A) For transactions involving cash payments between
different railways
- B) For internal adjustments within the same railway
- C) For foreign exchange transactions
- D) For adjusting government department accounts
Answer: B) For internal adjustments
within the same railway
8.When must all transfer
certificates be issued by?
- A) 10th of the following month
- B) 12th of the following month
- C) 15th of the following month
- D) 18th of the following month
Answer: B) 12th of the following
month
9.Who is authorized to sign
transfer certificates in the absence of a Gazetted Officer?
- A) The Section Officer, provided the certificates are
supported by bills or vouchers assigned by a Gazetted Officer
- B) The Assistant Section Officer
- C) The Junior Accountant
- D) The Treasurer
Answer: A) The Section Officer,
provided the certificates are supported by bills or vouchers assigned by a
Gazetted Officer
10.What should be done if a
transfer certificate amount does not relate entirely to the office to which it
was issued?
- A) It should be accepted partially
- B) It should be returned unaccepted under the signature
of a Gazetted Officer
- C) It should be accepted and adjusted later
- D) It should be adjusted in the next month’s accounts
Answer: B) It should be returned
unaccepted under the signature of a Gazetted Officer
11.What is the main purpose of
the consolidated schedule prepared after issuing transfer certificates?
- A) To verify the accuracy of journal entries
- B) To reconcile the head 'Transfers-Divisional' with
the issuing office
- C) To prepare monthly financial statements
- D) To track the acceptance of transfer certificates
Answer: B) To reconcile the head
'Transfers-Divisional' with the issuing office
12.How are adjustments with
foreign railways carried out?
- A) Through cash payments
- B) By issuing a Foreign Transfer Certificate and
sending relevant vouchers or bills to the Book Section
- C) Through local transfer certificates
- D) By direct bank transfers
Answer: B) By issuing a Foreign
Transfer Certificate and sending relevant vouchers or bills to the Book Section
13.What document should be
registered in the inward transfer certificate register?
- A) Transfer Certificates
- B) Journal entries
- C) Cash receipts
- D) Vouchers for payments
Answer: A) Transfer Certificates
14.Which section is responsible
for controlling exchange accounts with government departments other than
foreign railways?
- A) Book Section
- B) Stores Accounts Office
- C) Transfer Certificate Section
- D) Cashier’s Office
Answer: A) Book Section
15.What is recorded in Part I of
the journal?
- A) Transactions connected with the receipt of stores
- B) Transactions related to the issue of stores
- C) Adjustments with other departments
- D) Transfer Certificates
Answer: A) Transactions connected
with the receipt of stores
16.Which account is credited
through a Receipt Advice for purchases imported?
- A) 7110 - Purchases Imported
- B) 7120 - Purchases Indigenous
- C) 7130 - Purchases through Centralized Agencies
- D) 7160 - Stores
Answer: A) 7110 - Purchases Imported
17.When is the debit to the head
‘Purchases Imported’ credited to the head ‘Stores-in-Stock’?
- A) When the stores are received by the consignee
Railway
- B) Upon payment through a foreign transfer certificate
- C) On receipt of a debit scroll from the Reserve Bank
of India
- D) When a Receipt Advice is received
Answer: A) When the stores are
received by the consignee Railway
18.What is the primary purpose of
maintaining the Register of Transfer Certificates?
- A) To monitor the receipt of cash payments
- B) To track the proper disposal of issued and received
transfer certificates
- C) To record adjustments with government departments
- D) To prepare financial summaries
Answer: B) To track the proper
disposal of issued and received transfer certificates
19.Which account head is used for
adjusting purchases through centralized agencies like DGS&D?
- A) 7120 - Purchases Indigenous
- B) 7130 - Purchases through Centralized Agencies
- C) 7140 - Sales other than Fuel
- D) 7160 - Stores
Answer: B) 7130 - Purchases through
Centralized Agencies
20.What action is taken when
transfer certificates from other offices are not received by the 18th of the
following month?
- A) An internal audit is conducted
- B) A telegraphic reminder is issued
- C) The certificates are accepted provisionally
- D) The transactions are adjusted in the next month’s
accounts
Answer: B) A telegraphic reminder is
issued
21.What should be credited to the head 'Deposits Miscellaneous'?
A. Value of stores issued on suspense account
B. Value of stores obtained on loan from other Railways or Government
departments
C. Value of stores sold at auction
D. Value of stores returned to depots
Answer: B. Value of stores obtained on loan from other Railways or Government departments
22.How is the 'Miscellaneous Advances' head credited?
A. By debit to 'Stores'
B. By debit to 'Transfers-Divisional'
C. By credit to 'Stores'
D. By credit to 'Cash'
Answer: C. By credit to 'Stores'
23.When does the credit to the head 'Sales' appear before the debit?
A. In the case of auction sales where payment is made in advance
B. In the case of tender sales where stores are issued before payment
C. For direct sales to other Railways
D. When cash is received after the stores are issued
Answer: A. In the case of auction sales where payment is made in advance
24.What is the debit to the head 'Stores' (Capital 7160) made against?
A. Transfers Workshops
B. Sales (Fuel)
C. Miscellaneous Advances
D. Purchases Indigenous
Answer: A. Transfers Workshops
25.Which head is used for adjustments due to discrepancies in store balances?
A. Stores-in-Transit
B. Stock Adjustment Account
C. Sales (Fuel)
D. Purchases Imported
Answer: B. Stock Adjustment Account
26.What should be prepared at the end of the month from the suspense registers?
A. Transfer Certificates
B. Journal Entry Slips
C. Capital and Revenue Accounts
D. Annual Statement of Expenditure on Stores
Answer: B. Journal Entry Slips
27.Who is responsible for signing the consolidated journal entry?
A. Section Officer
B. Journal Keeper
C. Stores Accounts Officer
D. Gazetted Officer
Answer: C. Stores Accounts Officer
28.What should be checked to ensure that 'Transfers State Railway Revenue' and 'Transfers State Railway Capital' match?
A. The amounts shown in the Consolidated Journal Entries
B. The balance of the Stock Adjustment Account
C. The monthly schedules of 'Transfers-Divisional'
D. The totals in the Purchase Summary
Answer: A. The amounts shown in the Consolidated Journal Entries
29.What is the primary purpose of the subsidiary register maintained by the Book Section?
A. To track the physical losses of stores
B. To record the monthly statement of Stores Transactions
C. To reconcile and prove balances under detailed heads of account
D. To prepare the Annual Statement of Expenditure
Answer: C. To reconcile and prove balances under detailed heads of account
30.When should the opening and closing balances of decentralized stores agree?
A. With the Depot Group Ledger
B. With the Annual Statement of Expenditure
C. With the Capital Account Current
D. With the Consolidated Journal Slip
Answer: A. With the Depot Group Ledger
31.What should be submitted to the Railway Board by May 25th each year?
A. Consolidated Journal Entry
B. Annual Statement of Expenditure on Stores
C. Finance Accounts
D. Transfer Certificates
Answer: B. Annual Statement of Expenditure on Stores
32.Which types of stores are included in the annual return to the Railway Board?
A. Stores of Indian Manufacture only
B. Stores purchased in India only
C. Imported stores and stores of indigenous origin
D. Stores purchased directly by departments only
Answer: C. Imported stores and stores of indigenous origin
33.Who should certify the correctness of balances in the subsidiary register?
A. Book Section
B. Stores Accounts Officer
C. General Manager
D. Chief Accounts Officer
Answer: A. Book Section
34.What is the main purpose of the annual statement of expenditure on stores?
A. To reconcile the head 'Stores'
B. To show the value of stores purchased annually
C. To adjust discrepancies in stock balances
D. To prepare Finance Accounts
Answer: B. To show the value of stores purchased annually
35.What action is required if the entire amount of a transfer certificate does not relate to the office to which it is issued?
A. Accept the transfer certificate in full
B. Return the transfer certificate unaccepted
C. Issue a new transfer certificate
D. Adjust the amount in the Stock Adjustment Account
Answer: B. Return the transfer certificate unaccepted
36.What should be done if a discrepancy is found during the reconciliation of balances?
A. Report to the Railway Board
B. Adjust the discrepancy in the Stock Adjustment Account
C. Report to the gazetted officer within 10 days
D. Prepare a new journal entry slip
Answer: C. Report to the gazetted officer within 10 days.
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