Railway Accounts Department Examinations

Sunday, September 30, 2018

Operating Ratio - Video Lesson

Video Lesson on Operating Ratio 
This video is part one of Operating Ratio series. It's just an introduction . The forth coming ones are 1)How solve, if suspense figure is minus 2) Finding the Net revenue/Net Receipts/Surplus 3) Distributing the Surplus to various existing Funds like DF, CF.,etc. 4) calculating the percentage of net receipts to the (Capital at charge & Investments from capital fund) 5) Do It Yourself practicals on Operating Ratio.

Differences between Bad Debts and Doubtful Debts in Book keeping

Book Keeping  - 5 marks question asked in 1983 & 2004
Differences between
Bad debts
Doubtful debts
1. There is no possibility that a money will be collected from the Debtors.
1. There is a possibility that the money will be collect from Debtors.
2. Bad debt has a direct relation with the doubtful debt because when the possibility to collect money ends, a bad debt occurs.
2. Doubtful debt doesn’t depend on the bad debt.
3. A bad debt is written off and it is accounted as an expense in the Profit and Loss account duly deduct from Sundry Debtors in the Balance Sheet or adjust in the Provision for Bad and Doubtful Debts.
3. As a precaution, Company creats a Provision/ Reserve (certain percentage of Total debtors value) by debited to Profit and Loss Account and deduct the Same from Sundry Debtors.  Here it is not an expense, but as a Reserve.


Saturday, September 29, 2018

Differences between Journal & Ledger

Book Keeping  - 5 marks question asked in 1995 & 2016
Differences between
 1. Book of Original entry
1. Book of Final entry
2. It is a Subsidiary Book
2. It is a Principal Book
3.  It is prepared from the  vouchers, receipts, bills, etc
3. It is prepared from the Journal.
4. Transactions are recorded in the journal in chronological order.
4. Transactions are posted in the ledger in classified form.
5.Narration is required
5. Narration not required
6.There is no scope for balancing the Journal
6. Balancing the Ledger is must
7. Journal is the Basis for Ledger.
7. Ledger is the basis for Final Accounts i.e., Profit & Loss Account and Balance Sheet.
8. In journal, ledger folio (L.F.) is written.
8. In ledger,  journal folio (J.F.) is written.
9. Recording of the transactions in the journal is called journalizing.
9. Recording of transactions in the ledger is called posting.


Tuesday, September 18, 2018



By Shri Benhur, SSO(A)/Hqrs/SC Rly

ü  A thorough examination   of geographical area,  to gather  information  or measure and record the details of an area of the land.

ü  Preliminary investigations are conducted to collect data prior to the actual commencement of construction of New Line, GC, Doubling other traffic facility works.

ü  Hither to, the field work in survey was a complicated issue but with the usage modern technology the surveys have become easier with accurate results as compared to the good old days.

ü  Some of the modern equipments used in conducting surveys are :

1.Large scale topographic Maps.. Contains large scale details, shows natural and manmade features
2. Precision Maps … It produces scrollable, zoom able maps inside UI view without an internet
3. Air Cameras.. Drones
4. Electronic distance measure.. Electromagnetic energy determines the length of the line
5. First order plotting.. Program based Graphs.

Types of Surveys in Railways

1. Reconnaissance Engineering cum- Traffic Survey (RECTS)  (Budget Rs. 10000/- per KM)

ü  A detailed survey of traffic conditions of  a section  of an area   with a view to asses the traffic prospects and financial implications of new line, other traffic facilities, GC, Doubling & other Line capacity works.
ü  A thorough investigation will be carried out by the team to assess the potential sources to generate traffic Viz:
1.General characteristics  of the area  and extent of  cultivation
2. Local industries and religious festivals
3.The general conditions such as prosperity of people in the locality and density of   population and its distribution
4. The probable amount of traffic to be served by the new railway line.

5. The probable new lines to be opened up to join large trade centers.
6. Nature and volume of exports and their destination and origin
7.The amount of imports and centers of their distribution
8. Possibilities of development of new industries and irrigation schemes as a result of new railway lines
9. Tourism and Tourist prospects


An Engineering survey involving rough and rapid investigation of an area.   In this survey all the possible routes have to be examined along with the construction and operational cost  of a Projected line.
This survey should collect the following information:
1. Physical features of an area like  Hills  valleys water bodies, wetland climate islands etc.
2. Nature of soil
3. Streams and rivers in the area especially those likely to be crossed by the track, their direction of flow, approximate width and depth.
4. Position of hills and the lakes.
Besides indicating the  approximate distance, height, curvature, Necessity to cut and fills suitable sites for the station major Bridges Roads etc,.
Instruments used in Reconnaissance survey
1.Aneroid Barometer:  used for measuring the atmospheric  pressure
2.Prismatic Compass: It’s a navigating and surveying instrument  used for determining course, way points and directions.
3. Binoculars telescope
4. pedometer: It records and displays the number of steps you take based on the body movements
The data collected are tabulated to gauge the projected traffic potential of the proposed new line and survey report with all the details collected  along with the details of  other alternate routes examined  will be submitted to the competent authority

II. Preliminary Engineering cum- Traffic survey  (PECTS) (Budget Rs. 15000/- per KM)

The object of this  Survey is
1.To conduct the survey work along the alternative routes (found out by reconnaissance  survey) with the help of theodolite and leveling instruments.
2. To determine the greater accuracy  of the cost of railway line, along  with the  alternative routes, involving cost of removing obstruction, construction of bridges etc.
3.To decide the most economical and efficient route

Importance of PECTS

The preliminary survey  decides the final route and recommend, only one particular route in preference to other alternatives. Thus, the preliminary survey should be carried out with greater precision as the alignment of final route depends on it.

Instruments used in preliminary survey

1. Dumpy Level
2. Prismatic Compass
3. Tachometer
4. Plane Table

Final location survey (FSL)

This survey will be under  taken only when it is decided by the competent authority that the project will be taken up for construction.
The works involved in a Final location survey can be briefly assumed as under:
1. Staking of the centre line.
2. Leveling along with centre line
3. A plane table survey of the strip of he land on either side.
4 A plane table survey of Rivers, Station site and junction arrangements.

Instruments used

1. Theodelite
2.Precise Level
3. Steel Tape
Before a decision is taken to make investment in a project it is necessary to examine various alternatives including optimization of operating point of view  and best line is selected  to make an ideal investment.
The survey  report will have following chapters:
1. Introduction
2. Traffic Projections
3. Analysis of alternatives
4. Characteristics of project area
5. Standard of Construction
6. Route selection
7. Project Engineering
8. Cost, Phasing and investment schedule
9. Financial Appraisal

Basic Principles of Survey

1. To work from the whole to the part.
The whole area is first enclosed by main points  ( i.e controlling stations) and main survey lines. The area is then divided into number of parts by forming well conditioned triangles.
The main survey lines are measured very accurately with a standard chain, then the sides of the Triangles are measured.

II. To locate a new station by at least two  measurement (linear & angular) from fixed points
The points are located by linear or angular measurement or by both in survey.
Let A & B are control points then C is established .
The distance between A & B can be measured accurately and then plotted on the sheet to some scale.

Productivity Test.

Productivity test is a test applied to see if the works sanctioned due to having been considered as productive or remunerative have or not actually proved as such. Accordingly earnings there from or savings  in working expenses eventually realized are carefully compared with those anticipated.  This examination is called as Productivity Test.

This test is not applied for the following works:
1. Residential Buildings
2. Assisted Sidings  & Rolling  Stock.

New Lines

The actual  cash inflows and the rate of return for each year to the end of 5th /7th year from the date of commissioning  the project is worked out and the results of the review are prepared along with the following statement.
1. Passenger earnings from traffic local to the branch line
2. Other coaching earnings from traffic local to the branch line
3. Tonnage of goods Traffic from traffic local to the branch line
4. Tonnage of goods traffic interchanged with the existing lines
5. Earnings from Goods traffic local to the branch lines
6. Earnings from goods interchanged with the existing lines.

These  statements are prepared and sent for each financial year after the date of opening of the line for a period of11 years.

Open line works

The works undertaken with  a definite object of increasing earnings or reducing expenditure to which such test can be applied  with in three to five years of their completion  will be selected out of those charged to capital on the grounds of remuneration.
A statement in following format is prepared.
1. Reference to sanctioned estimate
2. Brief particulars of works selected for application of Productivity test
3.Total estimated cost.
4. Nature and extent of productivity claimed in the estimate.
5. Brief remarks about the results of the test

The object is not only  to furnish the results actually achieved to  the authority  who sanctioned the estimates but also  serves  as a   guiding factor in future.

PLAN HEADS - Short notes - Many times asked

PLAN HEADS – Erstwhile  DEMAND NO. 16 or Capital Segment of Demand No 80

1986 (with Books) & 1985,1987,1988,1991,1995(without Books)               5 Marks  
Ø For the purpose of LINK with the accounts of the Central Government, the PLAN HEADS will form the “Minor Heads of Railway Capital under the Major Heads:

                                Þ       546 – Capital outlay on Indian Railways – Commercial lines

                                Þ       547 – Capital outlay on Indian Railways – Strategic lines

Ø The Plan Heads make the “Works Budget” performance oriented and form a LINK with National Planning for Railway Transportation (for Five year Plans)

Ø As the Plan Heads classification coincide with the Sub Heads of the Demands for Grants, the compilation of Budget is also rendered easy and direct.

Ø XX(Source)   –   XX (PH) –  XX (Sub & Detailed Head –     XX (PU)   -
 8 digit allocation for plan head
Ø  An example is  20-2112-09 is break down as follows:

  2100 – PH for Rolling Stock
2110 – Sub Head Locomotive
Primary Unit -
2112- Detailed Head 
Diesel Hydraulic and Mech. Locomotives
Transfer of Debits/credits affecting capital works expenditure


Ø The Plan Heads indicates the activity and facilitates plan investment forecasts for Planning commission.

Ø The programme for creation of Assets, Replacements & Renewals submitted by the Railways under “Works, Rolling Stock and M &P Programmes” should indicate the Plan Head wise expenditure (irrespective of source of finance i.e., Capital, DRF, DF, Capital Fund, OLWR etc)

Ø The allocation of Funds for expenditure on Plan Heads are made by the Planning Commission and are subject to mid-term appraisal.
Summary at Minor Heads of Classification showing Plan Head Codes for Works Expenditure

 For the purpose of link with the accounts of the Central Government the Plant heads will form the Minor Heads of Railway Capital under the Major Heads "546-Capital Outlay on Indian Railways-Commercial lines" and "546-Capital Outlay on Indian Railways-Strategic lines." The minor Heads classification are as follows :"
New Plan Heads are highlighted with Red colour and Bold.
New Lines (Construction).
Traction Distribution Works
Purchase of new lines.
Machinery and Plant.
Gauge conversion.
Workshops including Production Units
Staff Quarters.
Traffic facilities-Yard remodelling and others.
Amenities for staff.
(i) Passenger Amenities.
(ii) Other Railway User Amenities.
Railway Research
Investment in Government Commercial under Takings-Road services.
Rolling Stock.
Investment in Government Commercial under taking-Public Undertaking
Leased assets -  Payment of  capital component of lease charges to IRFC etc.
Investment in Non Government Undertaking including JVs/SPVs.
Road Safety Works  Conversion of Unmanned Level Crossings into Manned Level Crossings. 
Other specified works.
 Road Safety Works Conversion of Level Crossings  into Road over Bridges/Road under Bridges.
Track renewals.
Stores suspense
Bridge work.
Manufacturing suspense.
Signalling and Telecommunication works.
Miscellaneous Advances.
Taking over of line wires from P. & T. Dept.
Metropolitan Transport Projects.
Electrification projects.
Transfer to Special Railway Safety Fund.
Other Electrical works.
New Lines (Construction)- Dividend free projects
Note: Plan Head 82 is no longer in operation, because SRSF is ceased to exist from the year 2008.