Railway Accounts Department Examinations

Thursday, June 21, 2018


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RRSK – Rashtriya Rail Sanraksha Kosh

RRSK – Rashtriya Rail Sanraksha Kosh

·         Dedicated fund for Railway Safety.

·         Established in the year 2017-18 (announced in Budget speech of 2017-18)

·         Based on the recommendations of High Level Safety Review Committee, 2012 headed by Shri Anil Kakodkar, former chairman of Atomic Energy Commission.

·         Period – Five years

·         Fund proposed – Rs.1,00,000 Crores (i.e., Rs.20,000 Crores for every year)

·         Rs.20,000Crores for this year i.e., 2017-18 is proposed to be funded as follows.

Central Road Fund
Rs.10,000 Crores
So far, the amount goes to SRF.
Ministry of Finance
Rs.5,000 Crores
Railway Internal Resources
Rs.1,000 Crores
(from Budget document 2017-18)
By collecting Cess on fares ( proposed)
Rs.4,000 Crores

Rs.20,000 Crores
For FY 2017-18

·         Objects: 1 ) Strengthen the safety measures on the Rail Network to prevent accidents in order to accomplish the “ZERO ACCIDENT MISSION”

·         Unique feature of this Fund is Non-lapsable .  That means the grant allotted for this Fund is not lapsed with the completion of financial year.

·         Works falling under this Fund category: -

1.       Track renewals &upgradation
2.       Bridge rehabilitation
3.       Elimination of LC gates on BG routes by 2022  
4.   Construction of ROBs/RUBs     
5.       Replacement & Improvement of Signaling system.
6.       Improvement & up gradation of Rolling Stock.
7.       Replacement of Electrical assets
8.       HRD – Human Resources Development.

·         Likely probability:

 SRF – Special Railway Safety Fund may be merged with the above Fund.  This conclusion arrived based on the two factors.  1) CRF – Central Road Fund – so far it is a source of finance for existing RSF – Railway Safety Fund.  Now it is going to be credited to new Fund that is NRSF or RRSK.  2 ) LC Gates (Plan Head 2900) and ROBs/RUBs (Plan Head 3000) so far met from the existing fund RSF.  Now these two objects are included in the proposed new Fund NRSF or RRSK.  Don’t come to any conclusion. Let’s wait and see for further guidelines from Railway Board.


Test Balance Sheet

Test Balance Sheet

2016 Station Accounts without books -5 marks

·         Prepared in the Proforma Appendix XIII/Commercial Manual.

·         The TIAs should prepare Test Balance Sheet in respect of both coaching and goods traffic ( at the time of Inspection of Stations) and submit to the Accounts Officer along with their inspection reports.

·         Debit Side :  1) Closing Balance of previous month 2) The 'To-pay' way-bills for parcels and Motor cars eetc received during the current month to date 3) Any special items

·         Credit Side: 1) The collections on account of inward parcels and motor-cars, etc 2) any special credits 3) the outstanding on date.

·         The test balance for the closing period of the month should be made as soon as the returns are closed.

·         The outstanding being detailed on the reverse of the Balance sheet.


Traffic Cash Witness

Traffic Cash Witness     

2016 Station Accounts without books -5 marks

·         From Traffic (Commercial) dept

·         Deputed to witness all operations connected with the remittances from the time the cash safes are made over to Cashier or his representative till the cash has been counted.

·         required to protect the interests of Station staff

·         They should not assist the work of counting the cash, except to help the station staff in case of discrepancy.

·         Sign the counterfoils of the CR Notes (Cash Remittance Notes) received with the Station earnings.

·         See that the entries of CR Notes are correctly made in the Cash Office Records ( Traffic Cash Check Sheet)

·         The cash safes should be opened one at a time personally by the Traffic Cash Witness, Cash office representative and RPF/GRP.  Locks and Seals of all the Safes to be examined.

·         Register of cash bags (A-917) - maintained by both Cash office and Cash Witness. All bags bring out from the Cash Safes are entered in that Register duly read out Station Name and painted number.

·         After all the columns in the Register of Bags are filled and signed by Cash witness, Cash office representative & RPF/GPF.

·         The next cash safe should not be opened until this procedure has been completed in respect of the cash safe in hand.

·         Any discrepancies should be brought to the notice of Commercial and Accounts officers for further investigations. But short receipt of cash bags are immediately informed to DRM, Chief Cashier, Traffic Accounts officer along with concerned Station.

·         Till the last moment i.e., counting, checking of empty bags (for any left over cash) etc, Traffic Cash witness should be present.

·         To avoid the above lengthy procedure and laborious manual work involved, the Railways are already moving towards Doorstep banking.


Tuesday, June 5, 2018

Latest development in Appendix 3 exam

"There is no provision of re-evaluation/re-assessment in Appendix-III Examination . Rechecks of  totals of marks and arithmetic mistake are permissible only".

Changes in Appendix-3 of Indian Railway Establishment Manual, Volume – I(Revised Edition 1989)

RBA No. 52/2018
New delhi, dt. 22.05.2018
Gerneral Managers/PFAs
All Indian Railways and PUs etc.
Sub: Changes in Appendix-3 of Indian Railway Establishment Manual, Volume– I(Revised Edition 1989)
Advanced correction Slip No. 244 Regarding addition in the Appendix – 3 of Indian Railway Establishment Manual, Volume-I (Revised Edition 1989) is enclosed herewith.
Kindly acknowledge the receipt.
DA: As above
(G. Kabui)
Director Finance(CCA),
Railway Board
Advance Correction Slip No.244 Indian Railway Establishment, Volume – I(Revised Edition 1989)
The following new para, namely 14 may be inserted at the end of Appendix-III
There is no provision of re-evaluation/re-assessment in Appendix-III Examination . Rechecks of  totals of marks and arithmetic mistake are permissible only.
(Authority Board’s Letter No. No.A(E)/A3/2018/10/2 dated 22/05/2018.)

Sunday, June 3, 2018

Subsidiary Accounts Records

Subsidiary Accounts Records
5 marks question in 2016 Books & Budget (with books)

«  Para 311 of Indian Railways Accounts Code   Clickfor Chapter 3 of Accounts Code Vol. one

«  In addition to General Books i.e., 1) Daily Cash Book 2) Monthly Cash Book 3) The Journal 4) The Ledger, the following Subsidiary Accounts Records should be kept by each Accounting circle.

1.       Register of Earnings - Should record the earnings of the Railway under all the detailed heads of classification prescribed in Volume II of the Indian Railway Financial Code. These registers may be kept in convenient parts to facilitate application of statistics of earnings.

2.       RAR - Revenue Allocation Registers - A separate Allocation Register should be maintained for Abstracts A to N.   Posted separately for expenses whether by cash or book adjustment (through journal voucher -JV).

3.       Registers of Works - A collective record of expenditure designed
A.      Control of expenditure with reference to the Estimates
B.      For effecting budgetary control
C.      To enable any material modification occurring being spotted.

4.       Suspense Registers - Reflect transactions which cannot immediately be charged to final heads. Examples are 
A.      Demands Payable Register
B.      Misc. Advances Register
C.      Loans & Advances Register
D.      Deposits unpaid Register
E.       Deposits Miscellaneous Register

5.       Register of Works expenditure classified under different sources of finance i.e., Capital, DRF, DF etc

«  These records are of the utmost importance in as much as they are designed to exhibit the details of the transactions under Revenue, Capital, DRF, DF & Suspense heads.

«  Separate set of the above subsidiary registers should be maintained to record the expenditure met from the contingency Fund.

«  Posted directly from the Vouchers or Summary statement of vouchers like CO7.

Management Accounting Topics for LDCE


1)       The below mentioned areas are arrived based on past question papers of LDCE for Accounts Department of various Zonal Railways
2)      The list is not exhaustive.

v  Functions of Management Accountant

v  Distinguish between Management Accounting and Financial Accounting.

v  Ratio Analysis

v  Break Even Point

v  Different types of Budget like Capital budget, cash budget etc

v  Different types  of costing like marginal costing, incremental costing etc

v  Cost Benefit analysis

v  Funds Flow, Cash Flow

v  PERT and CPM

v  Productivity Test

Differences between Provision and Reserves

Book keeping -1984, 1987, 1988, 1995 (Most Important question)
Differences between
1.       Meaning: Provide for a future expected liability.
1.       Meaning: Retain a part of profit for future use.
2.       Charge against profit.  That means Provision is created before arriving Profit/Loss. That is Debiting the P&L A/c
2.       Appropriation of profit.  That means Reserve is created after arriving the profit only. That is debiting P&L Appropriation A/c
3.       Provides for known liabilities and anticipated losses. Example:  Reserve for Bad & Doubtful Debts (RBDD)
3.       Provides for increase in capital employed.  Example: Reserve for creation of Capital Asset/General Reserve
4.       Presence of profit is not required to create Provision
4.       Profit must be present for the creation of reserves.
5.       In case of assets it is shown as a deduction from the concerned asset while if it is a provision for liability, it is shown in the liabilities side.
5.       Shown on the liabilities side.
6.       Dividend can never be paid out of provisions.
6.       Dividend can be paid out of reserves.
7.       Provisions can only be used, for which they are created.
7.       Reserves can be used for any use as per the decision of Management.


Allocations - Practical question - 2016 - Books & Budget (with books)

Allocations - Practical question - 2016 - Books & Budget (with books)

For the following items of expenditure/earning give: Abstract of Allocation, Demand No. (Where applicable), Minor Head and Detailed Head.     20 marks



1)   Due to merger of Rly.Budget with General Budget, all Demands 3 to 13 are now subsumed into Single Demand No.80 - Ministry of Railways.  The erstwhile Demands 3 to 13 are now named as Sub Major Heads (SMH) 01 to 11 under Major Head 3002 - Indian Railways Working Expenses (Commercial Lines) respectively. 

2)   Description of Demand/Minor Head/Sub Head/Detailed Head is given for the purpose of understanding.  Need not be furnished in answer sheets.

3)   Sub Head is not asked, yet furnished herein for perusal.

4)   For attempting these type of Allocation questions, hard copy of Finance Code Volume 2 (F2) is must for preparation.  Click for F2
5)   Answers are furnished accurately.  Still any discrepancy, please brought to the notice to me.

Sub Major Head (SMH)

Minor Head (MH)
Sub Head(SH)
Detailed Head
Running repair of traction motor of Electric Locomotive (A.C)
R & M of Motive Power
Electric Locomotives
Running repairs in sheds.
Traction motors and other electrical rotating machines.

Imported stores purchased in India
Assets-Acquisition, 'Construction and Replacement.
Stores Suspense
Purchases-Indigenous purchase by Railways including Railway Board
Imported stores purchased in India

Salary payment of FA&CAO
General Superintendence and Services.
Financial Management
Difference between the ledger balance & ground balance discovered by the stock verifier
Assets-Acquisition, 'Construction and Replacement.
Stores Suspense
Stock Adjustment A/c
Difference between the ledger balances and the ground balances, discovered during departmental stock verification
Penalties levied for irregular travelling by the TTEs in train
Coaching Earnings
Misc Coaching Receipts
Penalties levied for irregular travelling
Penalties levied for Irregular travelling by T. T.Es. in trains 
Expenditure on consultancy services for Passenger Reservation System (Computerisation).
Assets-Acquisition, 'Construction and Replacement.
Passenger Reservation System
Consultancy Software
Cost of Medicines.
Staff Welfare & Amenities
Medical services
Cost of Medicines
Cost of Medicines
Repair and working cost of staff car of General Department
R & M of Plant and Equipment
Other Plant & Equipment - General & Traffic Depts
Other repairs & Misc expenses
Service Motor Cars and Trolleys (Rail and Road)-Repairs and working cost.
Contribution towards cost of order police.
Misc. Working Expenses
Order Police
Contributions towards the cost of order police
Receipt from car/scooter/cycle parking at stations/Rly. Premises.
Sundry earnings

Rents & Tolls
Receipts from car/scooter/cycle parking at Stations/Rly premises