Railway Accounts Department Examinations

Saturday, June 19, 2021

26th Zoom Meeting - Topic : Sources of Finance (Budgetary) - 20th June 2021 (Sunday) 6 PM

 





Nageswara Rao www.appendix3.com is inviting you to a scheduled 26th Zoom meeting.



Topic: Sources of Finance (Budgetary) i.e., Capital, DRF, DF, RSF, RRSK, Debt Service Fund

Date & Time: 20th June, 2021 Sunday 6 PM



Meeting ID: 846 2196 1459


Passcode: appendix3

  


   Zoom Meetings  - Topics covered so far

Meeting

Date

Topic

1

20.12.20

Introduction

2

27.12.20

Budget

3

03.01.21

Auditing

4

10.01.21

Parliamentary Control

over Railway Finances

5

17.01.21

Appropriation Accounts

6

24.01.21

What is Demand ? What is Grant ?

What is Major Head ?

What is a Sub Major Head ?

7

31.01.21

Works Program & IRPSM 

8

07.02.21

Railway Budget 2021-22 - An analysis

9

14.02.21

Traditional Budget, Outcome Budget, ZBB,

 Integrated Budget,  Performance Budget

10

21.02.21

Operating Ratio (Theory & Practical)

11

28.02.21

GeM - Govt e Marketplace

12

07.03.21

MSOP - Model Schedule Of Powers

13

14.03.21

IRFC and EBR (IF)

14

21.03.21

PPP - Public Private Partnership 

15

28.03.21

Dedicated Freight Corridor

16

11.04.21

Financial Appraisal and DCF technique

17

18.04.21

Link Heads - Connecting Govt Accounts with Commercial Accounts

18

25.04.2021

Stores Suspense heads

19

02.05.2021

Accounting Reforms in IR (Accrual Accounting, Outcome Budget &Performance Costing)

20

09.05.2021

FAR - Fixed Asset Register

21

16.05.2021

Re-Appropriation Rules

22

23.05,2021

WMS - Workshop Manufacturing Suspense

23

30.05.2021

Management Accounting for LDCE -AFA Post

24

06.06.2021

Earnings Budget

25

13.06.2021

MCQ Test on Books & Budget


Wednesday, June 16, 2021

Journey of Rupee from Booking Office to RBI

 

 

Journey of Rupee from Booking office to RBI

 

By Nageswara Rao M, 9492432160

 

 

Total Stages  - Three 

1.    From Booking Office to Cash Office   

 

2.    Cash Office to PSBs ( Public Sector Banks)

 

3.    PSBs to RBI

Financial Transactions   -  3 Stages  

1.    Accountal of Earnings  (through CRN -Cash Remittance Notes / TRN -Treasury Remittance Notes) 

Date

Particulars

Debit

Credit


Remittance Into Bank (RIB) A/c   Dr

Re 1

       To Coaching Earnings (Abstract X)

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

2.     Accountal of Cash at PSB – Public Sector Bank 

Date

Particulars

Debit

Credit

PSB Suspense A/c  Dr

Re 1


      To  Remittance Into Bank (RIB) A/c

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

3.     On Receipt of Clearance Memo from RBI

Date

Particulars

Debit

Credit

Deposit  with RBI  A/c Dr

Re 1

            To PSB Suspense A/c 

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

 

 

 

Left over Entries after clearance of RIB A/c & PSB Suspense A/c  i.e., Net of above 3 Transactions: 

 Date

Particulars

Debit

Credit

Deposit  with RBI    Dr

Re 1

            To Coaching Eanings (Abstract X) 

Re 1

 

(Being accountal of Coaching Earnings

& accounted at RBI)

 

 

 

Commercial Accounts – In Business

Date

Particulars

Debit

Credit

Cash A/c  Dr

Re 1

            To Sales (Goods)

Re 1

 

(Being Sales of Goods)

 

 

 

·         Cash is Real Account.  Real Account Rule is “Debit what Comes in and Credit What Goes out” .  Cash is coming into Business. Hence Cash Account is Debited.

 

·         Goods are Real Account.  Real Account Rule is “Debit what comes in and Credit what Goes out”  -  Goods going out from business,  Hence Goods Account is credited. 

Closing Entries (Chapter Two of Accounts Code): 

·         At the end of Financial Year, the following transactions in the Indian Railways have been closed to the respective heads.

SN

Transaction

Closed to

1

Revenue transactions (except suspense heads i.e., MAR  & DP)

Net Revenue

2

Capital transactions (except suspense heads i.e., WMS & Stores Suspense)

Capital outlay

3

Debt (Example: Provident Fund)

 

 

 

Balance

4

Remittances (Examples: Remittances into Bank and Cheques& Bills)

5

Balance in Transfer Railways (if any) in the Books of Railway Board

6

Revenue suspense head MAR, Capital suspense heads WMS, Stores & MAC and Link Heads a) Demands Payable b) Traffic c) Demands Recoverable d) Labour

7

Balance in Transfer Railways in the books of Zonal Railways

Miscellaneous Government Account

8

All heads (other than Debt & Remittances)

Example: Deposit with Reserve Bank of India

 

Remittance Into Bank – RIB

 

·         It is a Suspense Head  

 

·         Major Head - 8677

 

·         Operated to watch on the accountal of Treasury Remittance Notes. 

 

·         It is operated for Cash Received into the Railways (Like Cheques & Bills operated for Cash outgoing from the Railways)

 

·         PSB branches forward (through their FPB - Focal Point branch) DMS – Date-wise Monthly Scrolls to PFA office.  On verification of the same, RIB Account is cleared by Debited to PSB Suspense Head. 

 

·         In first stage, this Account is Debited and in Second stage, the same is cleared by Credited.  In practical, instead of Credit the Head, Minus Debit to this Head.

 

·         That is First Debited and then Minus Debited.  Hence the RIB is closed for that particular transaction.

 

·         It is always showing Debit Balance.  

 

Public Sector Bank Suspense

 

·         Introduced  - 1993 October

 

·         It is a Sub Head under Major Head 8658 – Suspense Accounts  

 

·         Object:  To watch the adjustments of Railway Transactions in the Public Sector Banks  (Both Debit and Credit)

 

·         Operated for clearance of Remittance Into Bank and Cheques & Bills

 

·         Not operated for Pension Payments.

 

 

 

 

Deposit with Reserve Bank:

 

·         Major Head 8675

 

·         It is Final Head (not suspense Head) for accountal of Cash Receipts & Cash payments and Adjustments on Behalf of Government of India.

 

·         It is maintained at CAS – Central Accounts Section, RBI, Nagpur.

 

·         It is operated for all types of Cash payments, Cash Receipts, Adjustments.

 

Railway Fund

 

·         Maintained in the books of CAS – Central Accounts Section, RBI/Nagpur

 

·         Though the Railway transactions form the part of Consolidated Fund, Contingency Fund & Public Account, they are accounted in the prof forma Railway Fund.

 

Door Step Banking

 

·         First Zonal Railway – introducing the Door Step Banking – SWR in 2016

  

·         So far 7 Zonal Railways have initiated Door Step Banking. 

 

·         SCR has entered MOU (Memorandum Of Understanding) with SBI in 2020  January

 

·         Direct pickup of Earnings/Revenue from 585 Railway Stations over SCR by SBI.  

 

·         Approximate Railway Stations in IR - 8000

 

·         Saves the tedious and complex activity of Cash Movement through Cash safes in Trains.

 

·         Avoids delay in accountal of Earnings into Bank.

 

·         All Railway Stations will have uniform Cash Remittance Mechanism.

 

·         Real time information about cash being deposited by different stations.

 

·         Avoidance of unwanted accumulation of Cash at Railway Stations.

 

·         Elimination of Cash In Transit  

 

·          Detailed MIS Reports – Date wise transactions furnished by Bank to Railways on day to day basis under focal point concept scheme

 

·         So that, monitoring of timely deposit of Earnings / revenue by the Bank into Railways Account,

Rail Shakti Account – SBI

 

·          Railway Board circular No.RBA 24/2012 dated 11.07.2012

 

·         Single Deposit Pooling Account  - Operated by SBI at Focal Point Branch (FPB)

 

·         To facilitate remittance of Railway Earnings by Stations to nearby SBI branches without opening a Railway Deposit Account. 

 

·         The said SBI branches will credit the amount instantly to FPB on a daily basis.

 

·         FPB will provide a Daily scroll incorporating all such details to PFA Office.  

 

Key Takeaways

1.    Accounts operated in this Journey are:

a)    Earnings

b)    RIB

c)    PSB Suspense

d)    Deposit with RBI

 

2.    CRN – Cash Remittance Note

 

3.    TRN – Treasury Remittance Note

 

4.    SBI Pooling Account – DSB – Rail Shakti Account

 

5.    DSB – Door Step Banking

 

6.    DMS – Date-wise Monthly Scroll

 

7.    FPB – Focal Point Bank

 

8.    RIB Head always shows Debit Balance

 

9.    Clearance Memo issued by RBI – Authority for operating Deposit with RBI Account in PFA Office.

 

10. PSB Suspense introduced – 1993 October

 

11. Revenue transactions (Earnings / Expenses) - closed to Revenue outlay - at the end of Financial Year.

 

12. Deposit with RBI – closed to Miscellaneous Government Account – at the end of Financial Year.  

 

13. RIB Major Head – 8677 

 

14. PSB Suspense – Sub Head under Major Head 8658- Suspense Accounts 

 

15. Railway Fund – operated in CAS – Central Accounts Section, RBI, Nagpur

 

16. First Zonal Railway – Implementing DSB – SWR  

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