Indian Railway Codes and Manuals-Accounts code- Vol-I-Chapter-11 (XI)
CHAPTER XI
BILLS
1101.
Introductory. – The document through which a claim is preferred is referred to
as a ‘Bill’ in this Code. Bills which are payable by the Railway are referred
to as ‘Bills Payable’ and those which are recoverable from other parties as
‘Bills Recoverable’.
1102.
Bills Payable. – There are bills which are to be settled by actual payment of
cash and bills which do not involve any payment or receipt of cash but are only
to be adjusted in the accounts.
1103.
All bills which are to be settled by payment in cash are to be registered on
receipt in the Accounts Office and subjected to the required checks. Thereafter
abstracts of the bills are to be prepared based on which cheques are drawn and
payment arranged through the Pay Department. This process is further explained
in the following paragraphs.
1104.
Registration of Bills to be settled by Cash Payment. – All bills which are to
be settled by cash payment should be entered in a register of Bills (A. 1104)
and should be numbered in consecutive order and the date of receipt should be
entered upon them. The number thus allotted to each bill will be referred to as
the Accounts Bill Number or briefly as “AB No. or CO-6 No.”. The bills should
then be sent to the section concerned for check. After a bill has been checked,
the amount for which it has been passed in internal check will be entered in
the appropriate column of the Register (A. 1104) provided for the purpose. The
register will be so maintained that the particulars of all bills received
during each month are shown distinctly. Form A. 1104
1105.
Bills received from other Railways and other Ministries of the Central
Government or the State Governments which are not payable in cash but are
adjusted in accounts (see Chapter IV) should not be entered in the Register of
Bills (A. 1104) but should be recorded separately.
1106.
Accounts Enfacement on Bills (for Bills to be settled in cash). – All bills
entered in the Register of Bills (A. 1104) should be passed on to the sections
of the Accounts Office concerned for internal check. On the completion of the
internal check (or before detailed check in the case of bills dealt with under
the post-check system vide rules in para 813 & 814) every bill should be
enfaced showing the amount for which the claim has been admitted by the
Accounts Officer, the total amount deducted and the net amount payable The
accounts office enfacement on bills should be in Form A. 1106.The head of
account to which the total amount of the claim admitted is chargeable and the
head of account to which deductions are creditable should be shown on or near
the enfacement. Note. - (1) In the case of bills on which payments have to be
made through another Accounts Officer (Cf. Paragraph 1132) the words “Not to be
included in A. 1107” should be distinctly written above the Enfacement. (2) The
Accounts Office enfacement (Form A. 1106) should be signed by the concerned
Accounts Officer. When, however, there is only one Accounts Officer attached to
an office (e.g., Divisional Accounts Office or Workshop Accounts Office) and
the Officer is away from the station on tour or is on leave or absent from
office for unavoidable reasons, the enfacement may be signed by the Section
Officer (Accounts) attached to the Section of that office. Form A. 1106
1107.
Abstracts of Bills Passed. – The bills passed by the Accounts Officer for
payment in cash or by cheque should be posted into the Abstract of Bills Passed
(A. 1107). The object of this abstract is (i) to reduce to the extent possible
the number of cheques to be drawn each day and (ii) to present the various
bills passed by an Accounts Officer in a condensed form to the Officer who has
to sign the cheques. The entries in the Abstracts of Bills Passed (A. 1107)
should be sufficiently full and clear to obviate a reference to the vouchers.
The Abstract of Bills Passed will thus give the particulars of each bill, the
amounts passed, the amount recoverable and the net amount to be paid. It should
show the name of the Bank on which the cheque is to be drawn, details of the
payee and the allocation of the charges. The Abstract should be checked with
the connected bills and signed by the Accounts Officer. As a safeguard against
the inclusion of a bill in more than one Abstract, the enfacement on a bill
included in an Abstract should be crossed off by the Accounts Officer signing
the Abstract. The Abstract of Bills Passed (A. 1107) should be forwarded to the
section preparing cheques. The numbers of the Abstract of Bills Passed (A.1107)
should be quoted in all records in which the Abstracts are referred to. The
Abstract of each week, fortnight or month should, after their return from the
Cashier be bound together and carefully preserved so as to form a record of
bills passed for payment. This record should be treated as a subsidiary book to
the Daily Abstract of Cash Transactions (A. 304). Note. – The Abstract may be
signed by Section Officer (Accounts) in the circumstances in which they are
permitted to sign bills, vide para 1106 but all such Abstracts must be
countersigned by the Accounts Officer on his return to duty. Form A. 1107
1108.
Abstract of Allocation. – The allocation (debits and credits) entered on the
Accounts Enfacement (A. 1106) on bills passed for payment should be abstracted
in an Abstract of Allocation, Form A. 1108. A separate Abstract of Allocation
should be prepared for each Form A. 1107.
1109.
The totals of the several Abstracts of allocation (A. 1108) compiled in a day
should be consolidated into one Form A. 1109. From this Consolidated Daily
Abstract (A. 1109) which should be totalled at the end of the day, the Daily
Abstract of Cash Transactions (A. 304) will be posted. The object of the Daily
Abstract of Allocation (A. 1109) is to reduce to a minimum the postings in the
Daily Abstract of Cash Transaction (A. 304). Form A. 1108/Form A. 1109
ABSTRACT
OF ALLOCATION/CONSOLIDATED DAILY ABSTRACT No. of Accounts Bills Form A.1107
Heads of Accounts Total Debits Total Debits Credits Total Credits Rs. P
1110
Statement of Unchecked Bills. – It is essential that all claims against the
Railway should be promptly checked and passed for payment. With a view to
ensure that no delays occur in checking and passing bills for payment without
the knowledge of the Accounts Officer, a Statement (A. 1110) should be prepared
from the Register of Bills (A. 1104) on the 11th, 21st and the last day of each
month, of bills received upto the 1st, 11th and 21st respectively, but not
passed upto the date of the preparation of the statement. A separate statement
should be compiled for each section of the office in which the bills have been
received for internal check. On these statements (A. 1110) the sections
responsible for internal check should offer reasons for the delay in passing
the bills and submit them to the Officer-in-charge of these sections for
scrutiny and remarks where necessary. They should then be submitted to the
Divisional Accounts Officer or to the Deputy Chief Accounts Officer in a
centralised Accounts Office. Form A. 1110
STATEMENT
OF UNCHECKED BILLS Account Bill No. By whom rendered Brief particulars Amount
Rs. P Remarks of Section concerned Accounts Officer’s Remarks
1111
Issue of Cheques: All payments will normally by arranged by the Accounts
Officer in cash (through pay office) or by cheques (through Cheque Disbursement
cell) in accordance with the detailed rules laid down in Chapter XIX. Cheques
are drawn on the Reserve Bank of India, or a Bank functioning as the agent of
the Reserve Bank, or a Government Treasury by Accounts Officers authorized in
this behalf by the Financial Adviser and Chief Accounts Officer or an Accounts
Officer in independent charge of a project. Funds required for payment in cash
will be obtained by cheques drawn in favour of the Cashier, while other payment
will be made by cheques drawn in favour of the payees/bank disbursing the
payment on behalf of railways concerned. Cheques should be prepared in
accordance with the details furnished on the Abstract of Bills Passed (A. 1107
third page). The cheques should be classified bank-wise in the Form A.1111,
Requisition for cheques, and this form together with the Abstracts …………………… (A.
1107) should be submitted to the Officer authorized to sign cheques. The
Officer should satisfy himself that the cheques have been correctly drawn in
all respects and should check the correctness of the entries in the Requisition
for Cheques (A. 1111) which is used as a voucher for posting the General Cash
Book (A. 304). He should cross off the enfacements on the Abstract of Bills (A.
1107) or otherwise cancel them by rubber stamp to ensure that cheques are not
prepared more than once for the same Abstracts. The Accounts officer should
thereafter segregate the payments into four categories viz a) NEFT b) ECS/NECS
c) Third party cheque and d) Cash. The Bills for NEFT/ECS/ NECS and third party
cheques shall be dealt by Accounts Officer under Disbursement cell of Books
section. Only those bills where the payment in cash is required to be made
should be sent to Pay office. Form A. 1111
1112.
All cheques should have the name of the Railway printed on the top in bold
letters so as to enable the Banks and Treasuries to classify the payments
correctly against the account of the Railway concerned.
1113.
Cheque Books. – A separate cheque book should be used for each bank, head
treasury or sub-treasury and the Accounts Officer should notify to the treasury
or the bank upon which he draws, the number of the cheque book which from time
to time he brings into use and the number of cheques it contains. Cheque Books
must be kept under lock and key in the personal custody of the Accounts
Officer, who when relieved, shall take a receipt for the correct number of
cheques made over to the relieving officer. The loss of a cheque book or blank
cheque form should be notify promptly to the Bank or to the Treasury Officers
with whom the Accounts Officer concerned has an authorised drawing account (see
para 1115).
1114.
An account of the cheque books in stock should be kept in a manuscript register
and on each occasion a cheque book is issued or brought into use the manuscript
register should be duly posted and got initialed by the Accounts Officer. The
number of cheques contained in the Cheque Book should be counted and a
certificate recorded on the cover of the Cheque Book.
1115.
Supply of Specimen Signatures to Banks and Treasuries. – The specimen signature
of all officers who are authorised by the Financial Adviser and Chief Accounts
Officer to sign cheques should be supplied to all banks and treasuries with
which such officers are in account. When an Officer authorised to sign cheques
is relieved of that duty, the fact should be intimated to all such banks and
treasuries. (The term treasuries has been defined in para 1905).
1116.
Writing of Cheques. – Each cheque should have a cross entry at right angles to
the type indicating a sum, a little in excess of that for which they are
granted, thus “under thirty rupees” will mean that the cheque is for a sum not
less than Rs. 20 but less than Rs. 30 and similarly “under eight hundred
rupees” will mean that it is for less than Rs. 800 but not less than Rs. 700.
The cross entry is not necessary if the amount in words in the cheque is
typed/perforated by a special cheque writing machine. No abbreviations such as
“eleven hundred” for one thousand one hundred” should be used. The amount
should be written in words as well as in figures. In case the amount involved
is in rupees only and there are no paise, the word “only” should be inserted
after the number of whole rupees as in the following examples and care should
be taken to leave no space for interpolation :- “Rupees twenty-six only”
“Rupees twenty-five and paise fifty” Note. – (1) All cheques should be written
and signed in indelible ink only. (2) In drawing or cashing a cheque, it should
be remembered that a common form of fraud consists in altering the word into
four by prefixing an ‘f’ and changing the ‘e’ into an ‘r’, the figure being
easily altered to correspond. The word twenty, if written carelessly, has also
sometimes been changed into seventy. The drawer of a cheque in which these
words occur should, therefore, so write as to make such a fraud impossible.
1117
No erasure or overwriting should be made in a cheque. – If any alteration is
necessary, the incorrect entry should be cancelled neatly in red ink and the
correct entry inserted. Each such alteration should be attested by the Accounts
Officer under his dated signature.
1118
Crossing of Cheques. – (a) Cheques drawn in favour of Government officers and
departments in settlement of Government dues should always be crossed ‘A/c
payee only-not negotiable.” (b) In the absence of a specific request to the
contrary from the payee cheques drawn in favour of corporate bodies, firms or
private persons should always be crossed. Subject to any instructions received
from the payee, a cheque should be crossed “………………………………… & Co.” with the
addition of the words “Not negotiable” between the crossing. Were the payee is
believed to have a banking account, further precautions should be adopted,
where possible, by crossing the cheque “specially” (instead of by the “general”
crossing ………..………. & Co.”) by quoting the name of the bank through which
the payee will receive payment and by adding the words “A/c payee only Not
negotiable”. These instructions regarding the method of crossing of cheques are
applicable in all cases where the use of crossed cheques is prescribed. (c) The
instructions in this para graph apply mutates mutandis to Indian Postal Orders
issued for remittance of money on Government account.
1119.
Cheques received in settlement of Railway dues. – When an Accounts Officer
receives a cheque and sends it to a Bank not for cash payment, but for credit
of its amount in the Bank accounts he must before endorsing the same, add the
words “Received payment by transfer credit to ………………” Omission to do this
facilitates fraudulent appropriation of money.
1120.
Ordinarily a cheque payable to order is not cashed by the Bank unless it is
receipted by the payee himself or other person in whose favour it is regularly
endorsed for payment. In special cases, when the head of an office is unable
himself to receive the cheques payable to his orders, owing to his being absent
on tour or for other causes and when he considers that strict compliance with
the ordinary rule would cause inconvenience, he may specially authorise in
writing an Office subordinate to him to endorse for him cheques drawn in his
favour by his official designation.
1121.
Every cheque in favour of a Government Officer must be made payable to ‘order’
only; but when the payee is not in Government employ, the drawer may at the
specific request in writing of the payee, make the cheque payable to ‘bearer’.
1.
1122: All cheques issued by the Accounts Office should be sent to the Cheque
Disbursement cell (in books section) along with the connected bills, Abstracts
of bills (A. 1107) and Requisition for cheques (A. 1111) for arranging,
payment. Before passing on the bills to the Cashier for arranging payment,
columns 8 to 10 of the Bills Register (A. 1104) should be posted. After making
the necessary entries in the Cash Book (A. 1941) the Cashier will return the
Abstracts of Bills and Requisition for Cheques to the Accounts Office for
record.
1122
a) Accounts office (Cheque Disbursement Cell) should generate Cheque Abstract
and cheques for arranging payment through NEFT/ECS/Third party cheques/Cash
based on CO-7s confirmed by concerned Bill passing sections. Cheque cell should
send Cheque Abstract Report of the day indicating Cheque numbers and Cheque
Abstract wise Total amount payable for the day along with all the cheques and
connected Bills, CO-7s duly stamped as “Cheque issued” and Cheque Abstracts to
Cheque Disbursement Cell along with the NEFT cheques for onward submission to
RBI/SBI for arranging payment in Beneficiary’s Account. Cheque cell should
maintain records for Cheque Abstracts received from Disbursement cell duly
acknowledged and will also maintain section wise details for Net amount payable
as per Disbursement Cash Book and Disbursement Report of a Day received from
Disbursement cell for verification by Bill passing sections.
1122
b) Accounts Office (Disbursement Cell) should generate Disbursement Cell Number
(DCN) for each Co-6 Bill through system and make manual Entry of Disbursement
Number, Date and amount on each bill with Red Ink. Cheque Disbursement cell
should also generate Disbursement Cash Book and Disbursement Report of a Day
from system listing out the Disbursement Cell Number given to each bill,
section code and Name, Co-6 No., Amount of each Bill, Co-7 No. and Total amount
of payment disbursed in a Day and reconcile the Total Amount disbursed as per
Disbursement Report of the day with the Cheque Abstract Report of the Day and
Cheques & Bills figures accounted for in the Receipt & Payment of the
Day. Cheque Disbursement cell should disburse the NEFT/ECS/NECS cheques along
with encrypted file to Bank and Third party cheques through Postal agency.
Cashier’s Cheques for cash payments should be sent to Pay office for arranging
Cash Payments. Cheque Disbursement cell should maintain the Register to record
of number of cheques disbursed in a Day and reconcile with the Cheque Abstract
Report of the Day received from Cheque cell. Disbursement cell should directly
send the Disbursement Report of a Day in duplicate along with NEFT/ECS/Third
party cheques connected Bills, Co-7 to Post Audit Cell. Post Audit cell should
return one copy duly acknowledged to Cheque Disbursement cell. Cheque
Disbursement cell should send Disbursement Cash Book in duplicate along with
Cheque abstracts to Cheque cell. Cheque cell should return one copy duly
acknowledged to Cheque Disbursement Cell. For arranging Cash Payments by Pay
office, Cheque Disbursement cell should send Cashier’s Cheques along with the
connected Bills and the Cashier’s Cheque Disbursement Report (generated from
system) in duplicate to Pay Office. Cashier’s Cheque Disbursement Report of the
Day should list out the details of cheque number, cheque date, amount,
Disbursement cell Number given to each bill, section code & Name of the
section, Co-6, No., Amount of each bill, Co-7 No., name of beneficiary to pay
office. The data sent to Bank along with cheques for arranging payment to
Beneficiary's Account should be reconciled with the data received from
RBI/designated bank giving status of each Transaction. Cheque Disbursement cell
should indicate Returned Transactions based on Bank transaction report received
from cheque cell section responsible for issuing cheques fortnightly in the
Disbursement Cash Book of the Month and send to Post Audit cell.
1122
c) Disbursement of Cash Payments through Pay Office - Pay office should
acknowledge receipt of Cashier's Cheque Disbursement Report of the day and
connected bills, and return one copy of Cheque Disbursement Report of the Day
to Cheque Disbursement cell of Accounts office. For Accountal of Bills in Pay
office, generation of relevant documents and accordance of Acquittance for cash
payments, procedure as per para 1945 A to para 1963-A should be followed.
1122
d) Accounts office Post Audit cell should maintain records of Disbursement
Report of a Day and NEFT/ ECS/ Third party cheques connected Bills, Co-7s
received from Cheque Disbursement cell daily and Paid /Unpaid Bills received
from Pay office after stipulated period of one month. Post Audit cell should
reconcile the receipt of Bills from Cheque Disbursement cell and Pay office
with the Disbursement Report of the Day/ month received from Cheque
Disbursement cell. Post Audit cell should distribute Bills received from Cheque
Disbursement cell and Pay office to the concerned Bill Passing section for
accordance of Final Acquittance Certificate to Post Audit cell of Books section
for these Bills. Post Audit cell should accord Final Acquittance Certificate to
Pay Office for Cash payments.
1122
e) Bill Passing sections - should exercise check of Paid vouchers / Bills as
per para 817- A & 818 – A and accord Final Acquittance Certificate to
Cheque Disbursement cell.
1123.
Cancellation of Cheques. – Cheques are ordinarily valid for a period of three
months after the month of issue; thus a cheque bearing any date in January is
payable upto 30th April. Should the currency of a cheque expire owing to its
not being presented within three months after the month of its issue, it may be
returned to the drawer who will destroy it himself and draw a new cheque in
lieu thereof. The fact of the destruction and the number and the number and
date of the new cheque should be recorded on the counterfoil of the old cheque,
and the number and date of the old cheque that is destroyed should be recorded
on the counterfoil of the new one. The fact of the new cheque having been
issued should be entered on the date of issue in red ink parenthetically in the
cash book, but not in the column for payment. A note should also be made
against the original entry in the cash book.
1124.
When it necessary to cancel a cheque, the cancelment should be recorded on the
counterfoil, and the cheque, if in the drawer’s possession, should be
destroyed. If not in his possession, he should promptly request the Bank to
stop payment of the cheque and on ascertaining that payment has been stopped,
he should write back the entry in his cash book by exhibiting the amount of the
cheque on the receipt side as “Refunds of Expenditure”. A counter-reference
must be given in the cash book, against the original, to the second entry of
the cheque. When the amount is thus adjusted, it will be deducted from the
amount credited to the head, “Cheques and Bills” for cheques of railway
department officers.
1125.
Duplicate Cheques. – On receipt of a request for a fresh cheque in lieu of a
cheque reported to have been lost, the drawing officer should send an
intimation by Registered Post Acknowledgement Due to the Bank regarding the
alleged loss of the cheque and advise it to stop payment if the same cheque is
presented thereafter. A written confirmation about the Bank having recorded the
‘Stop Order’ should also be obtained from it. However, in cases where the
currency of the cheque alleged to have been lost has already expired at the
when the request for recording the ‘Stop Order’ by the Bank is made, no
acknowledgement of the ‘Stop Order’ by the Bank other than a postal
acknowledgement due, is necessary. The party requesting for a fresh-cheque in
lieu of a lost one should execute an Indemnity Bond in Form (A. 1125). However,
in the case of a Government Department or a Bank, the execution of the
Indemnity Bond is not necessary but a fresh cheque should be issued in its
favour only on receipt of a certificate stating that it has not received the
cheque alleged to have been lost or having received it, it has been lost and
that it will be returned to the drawer if found later. On completion of the
above enquiries the Accounts Office, may issue a fresh cheque in lieu of the
lost one after verifying it from the list of cheques paid received from the
Banks in terms of para 432. As a measure of additional precaution, particulars
of Railway cheques relating to such of the debit scrolls as have been wrongly
sent by the Reserve Bank to a Railway and have not been withdrawn in the same
month’s account should be advised by that Railway to the issuing Railway which
should keep a note of such cheques in the details of balance under ‘Cheques and
Bills’ and this list should also be consulted before issuing any duplicate
cheque.
1126.
Date of payment by Cheque. Demand Draft, Money Order or Postal Order etc. – If
a payment is made by cheque and the cheque is honoured or presentation the
payment shall be deemed to be made on the date the cheque is handed over to the
payee or the person authorised to give a legal acquittance on his behalf. If
the payment is not made in person but by post, the payment shall be deemed to
be made on the date of despatch of cheque, money order or postal order etc., if
payment by post is made at the request of the payee, otherwise on the date the
cheque, money order or postal order etc. is received by the payee. Provided
that where a cheque is marked as not payable before a certain date, the payment
shall not be deemed to have been made until the date on which it becomes
payable.
GOVERNMENT
DRAFTS
1127
Government Drafts at par will be issued for remittance on behalf of the
Railways and for other quasi public purposes set forth in paragraph 1130 below
under the terms and conditions hereinafter specified. Government drafts will be
issued for a minimum amount of Rs. 50.
1128.
Two forms of Government drafts will be issued :- (i) Reserve Bank of India
Government Drafts. – To be drawn by or on places, where the Reserve Bank is
represented by its Treasury Agencies/nationalized Banks, and drafts to be drawn
by the Reserve Bank on its own offices and branches of the State Bank of India/
nationalized banks; and (ii) State Bank of India Government Drafts. – To be
drawn by the State Bank of India on its own offices and branches. In either
case, the drafts will be superscribed “on Government account only”.
1129
The officer requiring the draft shall tender with the money a formal
application in , which may be obtained from the bank. He shall certify on the
application that the draft is wanted for bona fide public purpose and described
the object of the remittance.
1130
(1) The issue of Government drafts at par is authorised in the following types
of cases:– (a) all cases where payment have to be made by bank drafts either
under the provisions of any law, or other legal or contractual obligations; (b)
Payment towards pay and allowances and other personal entitlements of
outstation establishments, and contingencies etc., relating to outstation
offices where it is not possible to resort to the procedure prescribed under
the provisions of the following paras 1132 to 1136. (Bank drafts required in
favour of disbursing officers of outstation offices to enable them to make
disbursements of pay and allowances and other personal entitlements of staff,
office contingencies etc., in cash in exceptional circumstances will be drawn
in favour of the Disbursing Officer by designation and bear the superscription
‘not transferable’ and the work “ONLY” should be added after the designation of
the payee. (c) Public Sector Undertakings and Corporations (other than local
bodies) set up by Government should open bank accounts at the station where the
Pay and Accounts Office concerned is located in order to facilitate payments to
them by crossed, negotiable cheques only. Wherever this is not possible,
payments may be arranged by crossed demand draft(s); (d) Payments to
semi-Government / private institutions /private companies/individual etc., not
covered under (a) to (c) above and located at outstations by crossed bank
drafts.
1131.
A draft on Government account is not transferable and is only payable to: - (a)
the payee or his lawful agent on identification; or (b) the payee’s banker who
should certify that the amount has been placed to the payee’s credit; or (c) a
person holding a letter of authority from the payee, whose signature must be
known to the Bank, and if the letter directs the Bank to pay the money to a
certain named person, that person must be identified to the Bank before payment
can be made to him. Before presentation for encashment, the draft must be
receipted on the back by a person entitled to give a legal acquittance.
AUTHORISATION
FOR PAYMENTS
1132
An Accounts officer may, if necessary or expedient arrange to discharge a bill
or liability which has been duly checked in the Accounts Office through another
Accounts Officer. In such a case, an authority for payment should be issued in
favour of the Account Officer who is required to arrange the payment. Note:
However, in case where payee requests for crediting of payments due to him in
his bank account, the accounts officer shall arrange to credit the amount
payable to the bank account of the payee directly. This will take effect from
1.12.07 (Authority: Railway Board's letter no.2004/AC-II/21/15 dated 12.11.
2007)—acs no.28
1133
The above authority for payment may be issued in the form of a letter,
telegram, or enfacement on vouchers, and it should be signed by an officer who
has been duly empowered by the head of the office in this respect.
1134
The authority for payment issued to another Accounts Officer should be sealed
with a special seal except when such authority is issued telegraphically (the
confirmation copy of the telegram should be duly sealed (Also see para 1136).
The special seal should remain in the custody of the officer authorised to sign
the payment authorities. Specimen impressions of the seal and also specimen
signatures of the officers authorised to sign the payment authorities should be
furnished to all other Accounts Officers, who should also be advised of any
change in the seal or of officers as and when they occur. Note. – The Specimen
of signature of Officers and of the seal when forwarded on a sheet of paper
other than the forwarding letter itself, should be attested by the Officer
signing the forwarding letter.
1135
The arrangement prescribed in the above paragraph should be observed not only
between Railway Accounts Offices but also with Offices of the Accountants
General (Civil) and Post & Telegraph, etc. These, arrangement do not,
however, apply to transactions with the Defence Accounts Department.
1136
Before arranging payment on the basis of authority for payments received from
another Accounts Officer, the Section Officer (Accounts) should satisfy himself
by comparison with the specimen signature on record that the signature on it is
genuine. In the case of payment authority received by telegram, payment should
not be authorised until the post copy of the telegram is received. In case of
special urgency, it should be specially brought to the notice of the Accounts
officer for orders.
1137
Daily Cash Outgo. – For the purpose of maintaining a concurrent record of the
cash outgo, the net amount of bills passed for payment and entered in the
Abstract of Bills (A.1107) should be posted daily in a manuscript register Form
A. 1137 classified by subheads of Demands. The running totals of the Cash Outgo
by sub-heads of Demands should be intimated by the Accounts Officer to the
Financial Adviser and Chief Accounts Officer daily or weekly as may be
prescribed. Form A. 1137 Date ………………………… Form A. 1107 No. Net amount payable
Allocation by sub-heads of Demands for Grants Total Total for the day
BILLS
RECOVERABLE
1138
Bill Form. – All dues of the Railway should, as a rule, be realized by issue of
Bills in Form A. 1138. Form A. 1138/E. 1463 BILL FOR To ……………………………….. Name of
the party Dear Sir, Subject.…………………………………………………………………… Reference. – Agreement
dated ……………………………………… The following amount has become due to be paid to the Railway:
- Particular of the claims Amount Previous dues if any Total shown in column 4
by cash/cheque/Bank draft to the Chief Cashier/Divisional Cashier ……………………………
on or before ……….. under advice to this office failing which interest @ …….%
will be charged on the outstanding balance. The amount is creditable to the
Head of Account ……………………………….. Please acknowledge receipt. Yours faithfully,
Errors & Omissions Excepted Excepted Accounts Officer ………………... Designation
……………………… Copy forwarded to ………………..….. (Executive Officer) for information and
necessary action.
1139.
Bills Recoverable Register. – All dues recoverable from the parties on account
of service rendered, material supplied or for any other purpose should be
entered in the Register of Bills Recoverable (A. 1139). A separate page should
be set apart for each party and the opening entries should be made from the
agreement, Register of Works etc. under the initials of the Accounts officer.
The bills should be accurately prepared, issued regularly in time and numbered
in consecutive order. As the bills are realized, suitable remarks in the
appropriate columns of the register should be recorded. At the close of the
year, the outstanding balance of amounts due from each party should be carried
forward into the new register. Any change in respect of the terms and
conditions of the claim should be made in the register under the initials of
the Accounts Officer. Form A. 1139/E. 1464
REGISTER
OF BILLS RECOVERABLE 1. 2. Name of the party ………………………………………………………….
Particulars of the charges ………………………………………………….. 3. 4. 5. 6. 7. Reference to
Agreement etc. …………………………………………………… Amount Recoverable ……………………………………………………………
Period viz. Monthly, Quarterly, Half-yearly, Annually ……………………… Due date of
payment …………………………………………………………. Accounts Officer (Initials)
…………………………………………………… No. and date of bill Amount Period Date of realisation
Particulars of remittance Outstanding dues Remarks 1 2 3 4 5 6 7
1140.
Review. – The Bills Recoverable Register should be reviewed monthly with a view
to see that the bills have been correctly issued to all parties in time and
necessary action is taken towards the realisation of the outstanding bills. At
the close of the month, a summary of the outstanding bills should be prepared
and put up to the Accounts Officer for review.
1141.
Realisation of Bills Recoverable. – It will be the duty of Accounts Officer to
see that the bills for services rendered, supplies made or for any purpose are
correctly made out and promptly issued to the parties concerned. There should
be no delay in preparing bills on mutually accepted basis or as per agreement.
The due date of payment, mode of remittance and the penalty for delayed payment
should be indicated on the bill. The realisation of the bills should be vigorously
pursued with the parties and cases of delay in payment should be promptly
brought to the notice of the executive officer concerned for expeditious action
to recover the outstanding dues or to discontinue the service rendered to the
party or such action as may be deemed necessary. The executive officers are
responsible for rendering all possible assistance in securing promptly
realisation of sums due to the railway. High value, old and disputed bills
should be specially followed up through personal contact in order to avoid
accumulation of the outstanding dues and possible loss due to waiver of the
irrecoverable dues. The Accounts Officer should advise the Executive Head of
the Office the position of the outstanding bills every month and also report the
position every quarter to the Financial Adviser and Chief Accounts Officer.
Multiple choice questions:
- What is the term used in the code to refer to the
document through which a claim is preferred?
- a) Invoice
- b) Voucher
- c) Bill
- d) Statement
Answer: c) Bill - What are the two types of bills mentioned in the code?
- a) Bills Payable and Bills Receivable
- b) Bills Payable and Bills Recoverable
- c) Cash Bills and Credit Bills
- d) Internal Bills and External Bills
Answer: b) Bills Payable and Bills Recoverable - How are bills settled by actual payment of cash
referred to in the code?
- a) Cash Bills
- b) Credit Bills
- c) Receivable Bills
- d) Bills Payable
Answer: d) Bills Payable - Where should all bills that are to be settled by
payment in cash be registered upon receipt?
- a) Cash Office
- b) Accounts Office
- c) Pay Office
- d) Treasury
Answer: b) Accounts Office - What is the term used to refer to the number allotted
to each bill for cash payment?
- a) Invoice Number
- b) Bill Reference Number
- c) Accounts Bill Number
- d) Payment Code
Answer: c) Accounts Bill Number - How should bills that do not involve cash payment but
are adjusted in accounts be handled?
- a) Entered in Register of Bills (A. 1104)
- b) Recorded separately
- c) Forwarded to Pay Office
- d) Destroyed
Answer: b) Recorded separately - What should be prepared after checking the bills that
are to be settled by cash payment?
- a) Payment Voucher
- b) Cheque Requisition
- c) Abstract of Bills Passed
- d) Cash Ledger
Answer: c) Abstract of Bills Passed - What is the purpose of the Abstract of Bills Passed (A.
1107)?
- a) To issue cheques
- b) To maintain a record of unpaid bills
- c) To consolidate cheques drawn
- d) To reduce the number of cheques drawn and present
bills in a condensed form
Answer: d) To reduce the number of cheques drawn and present bills in a condensed form - Who is responsible for checking and signing the
Abstract of Bills Passed?
- a) Pay Officer
- b) Accounts Officer
- c) Cashier
- d) Section Officer
Answer: b) Accounts Officer - What should be done to prevent a bill from being
included in more than one abstract?
- a) Issue a separate cheque
- b) Cross off the enfacement on the bill
- c) Prepare a new abstract
- d) Forward to Pay Office
Answer: b) Cross off the enfacement on the bill - How frequently should the Statement of Unchecked Bills
(A. 1110) be prepared?
- a) Monthly
- b) Quarterly
- c) Bi-monthly
- d) On the 11th, 21st, and last day of each month
Answer: d) On the 11th, 21st, and last day of each month - Which form should be used to classify cheques bank-wise
before submitting them for signatures?
- a) A. 1104
- b) A. 1107
- c) A. 1111
- d) A. 1106
Answer: c) A. 1111 - Who is authorized to sign cheques for payment?
- a) Any Accounts Officer
- b) Financial Adviser and Chief Accounts Officer
- c) Officer-in-Charge of Pay Office
- d) Cashier
Answer: b) Financial Adviser and Chief Accounts Officer - What should be printed at the top of every cheque
issued by the Railway?
- a) Railway Name
- b) Account Number
- c) Payee Name
- d) Branch Name
Answer: a) Railway Name - How should cheques be written to avoid common forms of
fraud?
- a) Use abbreviations
- b) Write in red ink
- c) Write the amount in words and figures without space
for interpolation
- d) Include signatures of two officers
Answer: c) Write the amount in words and figures without space for interpolation - What is the procedure if an error is made while writing
a cheque?
- a) Erase the mistake and correct it
- b) Use white ink to cover the error
- c) Cancel the incorrect entry in red ink and attest
the correction
- d) Discard the cheque and write a new one
Answer: c) Cancel the incorrect entry in red ink and attest the correction - Under what circumstances should a cheque be crossed
"A/c payee only - not negotiable"?
- a) When payable to a Government officer
- b) When payable to corporate bodies
- c) When payable to a private individual
- d) All of the above
Answer: d) All of the above - How should cheques received in settlement of Railway
dues be handled?
- a) Cashed immediately
- b) Sent to the bank for credit with a specific
endorsement
- c) Forwarded to the Pay Office
- d) Deposited in the Railway's treasury
Answer: b) Sent to the bank for credit with a specific endorsement - What is the correct format for writing amounts on a
cheque?
- a) Abbreviated words like "eleven hundred"
- b) Full words and figures with "only" for
whole rupees
- c) Words in capital letters only
- d) Figures only
Answer: b) Full words and figures with "only" for whole rupees - What should be done if a cheque book or blank cheque
form is lost?
- a) Ignore it
- b) Notify the Bank or Treasury Officers immediately
- c) Issue a new cheque book
- d) Report to the Pay Office
Answer: b) Notify the Bank or Treasury Officers immediately
21. A cheque issued in favor of a
Government Officer must be made payable to which of the following?
- (a) Bearer
- (b) Cash
- (c) Order
- (d) Holder
Answer: (c) Order
22. When the payee is not in
Government employ, how may the cheque be made payable at the specific request
of the payee?
- (a) To cash
- (b) To bearer
- (c) To order
- (d) To the bank directly
Answer: (b) To bearer
23. Who should send the Cheque
Abstract Report of the day indicating cheque numbers and cheque abstract-wise
total amount payable?
- (a) Post Audit Cell
- (b) Cheque Disbursement Cell
- (c) Pay Office
- (d) Bill Passing Section
Answer: (b) Cheque Disbursement Cell
24. The Disbursement Cell Number (DCN)
for each Co-6 Bill is generated by which office?
- (a) Pay Office
- (b) Accounts Office (Disbursement Cell)
- (c) Post Audit Cell
- (d) Cheque Cell
Answer: (b) Accounts Office
(Disbursement Cell)
25. The entry of Disbursement
Number, Date, and amount on each bill with red ink is done manually by whom?
- (a) Post Audit Cell
- (b) Cheque Disbursement Cell
- (c) Pay Office
- (d) Disbursement Cell
Answer: (d) Disbursement Cell
26. In the case of cash payments,
where should the Cashier's Cheques be sent for arranging cash payments?
- (a) Post Audit Cell
- (b) Pay Office
- (c) Cheque Disbursement Cell
- (d) Bill Passing Section
Answer: (b) Pay Office
27. What should the Post Audit Cell
do with paid or unpaid bills after a stipulated period of one month?
- (a) Return them to the Pay Office
- (b) Distribute them to the concerned Bill Passing
Section
- (c) Destroy them
- (d) Send them to Cheque Disbursement Cell
Answer: (b) Distribute them to the
concerned Bill Passing Section
28. If the currency of a cheque
expires, what should the drawer do with the expired cheque?
- (a) Deposit it
- (b) Cancel it
- (c) Destroy it and draw a new one
- (d) Return it to the bank
Answer: (c) Destroy it and draw a
new one
29. When it is necessary to cancel a
cheque, where should the cancellation be recorded?
- (a) In the ledger
- (b) On the cheque itself
- (c) On the counterfoil
- (d) In the cash book
Answer: (c) On the counterfoil
30. In case of a lost cheque, who
should issue the 'Stop Order' to the Bank?
- (a) The payee
- (b) The drawing officer
- (c) The cashier
- (d) The Cheque Disbursement Cell
Answer: (b) The drawing officer
31. What document should be executed
by a party requesting a fresh cheque in lieu of a lost one?
- (a) A promissory note
- (b) A written statement
- (c) An indemnity bond
- (d) A letter of authority
Answer: (c) An indemnity bond
32. When payment is made by cheque,
on what date is the payment deemed to have been made?
- (a) The date of issue
- (b) The date of encashment
- (c) The date of dispatch
- (d) The date it is handed over to the payee
Answer: (d) The date it is handed
over to the payee
33. How should a draft on Government
account be made payable?
- (a) To the bearer
- (b) To the payee's lawful agent
- (c) To anyone who presents it
- (d) To the person holding a letter of authority from
the payee
Answer: (b) To the payee's lawful
agent
34. Which section is responsible for
exercising checks on paid vouchers/bills?
- (a) Cheque Disbursement Cell
- (b) Bill Passing Section
- (c) Post Audit Cell
- (d) Pay Office
Answer: (b) Bill Passing Section
35. Government drafts will be issued
for a minimum amount of which value?
- (a) Rs. 10
- (b) Rs. 20
- (c) Rs. 50
- (d) Rs. 100
Answer: (c) Rs. 50
36. Before arranging payment on the
basis of authority for payments received from another Accounts Officer, what
should the Section Officer (Accounts) verify?
- (a) The cheque number
- (b) The voucher amount
- (c) The genuineness of the signature
- (d) The date of the authority letter
Answer: (c) The genuineness of the
signature
37. What should be done if the
currency of a cheque has expired?
- (a) Issue a duplicate cheque
- (b) Request the bank to extend the validity
- (c) Destroy the old cheque and issue a new one
- (d) Return the cheque to the payee
Answer: (c) Destroy the old cheque
and issue a new one
38. How often should the Bills Recoverable
Register be reviewed to ensure timely issuance and collection?
- (a) Weekly
- (b) Monthly
- (c) Quarterly
- (d) Annually
Answer: (b) Monthly
39. If a payment is made by post,
when is the payment deemed to have been made?
- (a) On the date of encashment
- (b) On the date of dispatch
- (c) On the date of issue
- (d) On the date of receipt by the payee
Answer: (b) On the date of dispatch
40. Who is responsible for the
preparation and issuance of bills for services rendered or materials supplied?
- (a) The Executive Officer
- (b) The Accounts Officer
- (c) The Pay Office
- (d) The Cheque Disbursement Cell
Answer: (b) The Accounts Officer
41. What is required when issuing a
duplicate cheque in the case of a Government Department or a Bank?
- (a) An indemnity bond
- (b) A certificate stating non-receipt or loss
- (c) A letter of authority
- (d) A written statement from the payee
Answer: (b) A certificate stating
non-receipt or loss
42. In which form should all dues of
the Railway be realized?
- (a) Form A. 1139
- (b) Form A. 1137
- (c) Form A. 1138
- (d) Form A. 1125
Answer: (c) Form A. 1138
43. What should the payee execute in
the case of a lost cheque to receive a duplicate?
- (a) A legal affidavit
- (b) An indemnity bond
- (c) A promissory note
- (d) A contract agreement
Answer: (b) An indemnity bond
44. What action should be taken if
the cheque is not presented within three months after the month of issue?
- (a) Extend the validity
- (b) Cancel and issue a new one
- (c) Deposit in the bank
- (d) Send a reminder to the payee
Answer: (b) Cancel and issue a new
one
45. What should be done if a cheque
is required for a bona fide public purpose?
- (a) Issue a demand draft
- (b) Issue a Government draft at par
- (c) Issue a banker's cheque
- (d) Issue a postal order
Answer: (b) Issue a Government draft
at par
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