Railway Accounts Department Examinations

Sunday, June 30, 2019

Transformation cell Circulars - Compendium

Appendix 3 Examination - Question Papers - From 1997 onwards

Hats off to the North Central Railway for uploading the Appendix 3 Exam question papers conducted by Railway Board and Appendix 2 and Appendix 4 Exams conducted by NCR.

Appendix 3 Examination - Question Papers - From 1997 onwards  -Click below the Link

Appendix 2 Examination -by NCR - Question Papers - From 2009 onwards  -Click below the Link

Appendix 4 Examination -by NCR - Question Papers - From 2015 onwards  -Click below the Link

100 Days Action Plan – Ministry of Railways

100 Days Action Plan – Ministry of Railways
·         Approved by Minister of Railways Shri Piyush  Goyal in June, 2019

·         Total 11 items

1.       Wi-Fi facility to all Railway Stations
(exclude Halt stations)
Existed already

Balance – Execute through
 private or govt agencies

2.       Passenger subsidy – Reduction
A.      “Give it up” – forego the subsidy voluntarily by the passengers.  2 options.   i) Purchase ticket without subsidy  ii) Purchase ticket with subsidy
B.      At present, IR Recovers only 53% of the cost incurred from passenger transport.  That means, Passenger pays only 53 paisa only out of one rupee spends by Railways. (Loss – 47 paisa)
C.      The above loss i.e., 47 paisa will be reduced using subsidy to be received under “Give it up” scheme.
       3.   Elimination of all Manual Level Crossings on Golden quadrilateral and Diagonals of IR – By
              Construction ROB - Road Over Bridge/RUB- Road Under Bridge

A.      100 % funding – Rs. 50,000 Crores from Govt of India ( No need of funding by State Govts) –
B.      Sanction in single stage at the Central Govt level  treated as National projects
C.      Deadline by year 2023
D.      RUB with water drainage system will be preferred (than ROB) – Because it is shorter in route, lower investments, faster execution
E.       In parallel, Railways work on plan to eliminate Level Crossings at other heavy traffic sections also.
      4.  Speed raising to 160 kmph – New Delhi – Howrah and New Delhi – Mumbai routes – 4 years period – Fixed time, Fixed cost EPC (Engineering Procurement Construction) – to avoid cost over runs and time over runs – Occupies 30 % of Passenger traffic and 20% of freight traffic
A.      New Delhi – Howrah route

i) 1525 Kms
ii) Cost - Rs.6684 Crores
iii) Journey time reduced from 17 hours to 12 hours

B.      New Delhi – Mumbai route

i) 1483 Kms
ii) Cost - Rs.6806 Crores
iii) Journey time reduced from 15.5 hours to 10 hours

5.  Private Passenger Trains:  Salient features

A.      Offer 2 trains to IRCTC - Indian Railway Catering & Tourism Corporation
B.      Custody of rakes  - to IRCTC  .  In turn it pay annual lease charges to IRFC ( real owner of rakes)
C.      EOI - Expression Of Interest to identify private operators and finalyse  RFQ - Request For Quotation / RFP- Request For Proposal documents  To initiate bidding for private operators to bid for operating of passenger trains day/overnight connecting important cities.
6. Corporatization of Production Units (PUs) of Rolling Stock - Salient features
A.      Total 7 PUs on IR. They are i) CLW- Chittaranjan Locomotive Works  ii) ICF - Integral Coach Factory, Chennai   iii) DLW - Diesel Locomotive Works, Varanasi  iv) DMW - Diesel Modernization Works, Patiala v) RWF - Rail Wheel Factory, Bangalore  vi) RCF - Rail Coach Factory, Kapurthala and vii) MCF- Modern Coach Factory, Rae Bareli
B.      All the above PUs are hive off /transfer to newly setup Govt owned entity "Indian Railway Rolling Stock Company - IRRSC " which is headed by CMD - Chairman & Managing Director.
C.      Each PU will be headed by CEO - Chief Executive Officer  .  Each PU will function as an Individual Profit Centre and reporting to the new entity i.e., IRRSC
D.      Objects are i) State of Art Technology  ii) promote exports iii) Superior operational efficiency.
E.       Starting with MCF, Rae Bareli, subsequently all other PUs are taken over by IRRSC in phased manner.   
7.  Digitalization of Indian Railways Network - Salient features
A.      Provision of 10 MHz spectrum in 700 MHz Frequency band to Railways freely (without cost)
B.      For safety, Security and Passenger services
C.      TRAI is examining the proposal and approval is pending from Ministry of Communications.
8. Advanced Signaling system
A.      Help in increasing line capacity on the IR network by 48 % on absolute block system.
B.      Improving punctuality and enhancing safety
9. Station Redevelopment:   Process to be initiate the redevelopment of 50 Railway Stations - IRSDC - Indian Railway Station Development Corporation
10.  Restructuring of Indian Railways
A.      Prepare blue print for restructuring in Indian Railways at all levels including Railway Board.
B.      Rightsizing the Ministry of Railways
C.      Selection of Board members, GMs and DRMs - based on strong delivery performance and leadership qualities.
11. Technological revamp of Indian Railways
A.      Paperless Railways - Implementation of E-office all over Railways in next two years.
B.      Re-organize CRIS - Centre for Railway Information Systems
C.      Upgrading PRS - Passenger Reservation System to next-gen software.
Acronyms /Abbreviations
1.       ROB - Road Over Bridge
2.       RUB- Road Under Bridge
3.       LHS - Limited Height Subway
4.       LC - Level Crossing
5.       EPC - Engineering Procurement Construction
6.       IRCTC - Indian Railway Catering & Tourism Corporation
7.       EOI - Expression Of Interest
8.       RFQ - Request For Quotation
9.       RFP- Request For Proposal
10.   PU - Production Unit
11.   CLW- Chittaranjan Locomotive Works
12.   ICF - Integral Coach Factory
13.   DLW - Diesel Locomotive Works
14.   DMW - Diesel Modernization Works
15.   RWF - Rail Wheel Factory
16.   RCF - Rail Coach Factory
17.   MCF- Modern Coach Factory
18.   IRRSC - Indian Railway Rolling Stock Company
19.   CMD - Chairman & Managing Director
20.   CEO - Chief Executive Officer 
21.   IRSDC - Indian Railway Station Development Corporation
22.   CRIS - Centre for Railway Information Systems
23.   PRS - Passenger Reservation System

Monday, June 17, 2019

Differences between Cash Accounting and Accrual Accounting

Book Keeping  - 5 marks question asked in 1988 & 2015
Differences between
Cash Accounting
Accrual Accounting
1. Basis
Cash is the basis for recognition of Income or expense. That means actual cash received or paid is the basis.
Revenue earned for income and expense incurred is the basis.  That means Cash received or paid is immaterial
2. Nature
3. Matching concept
 Example : Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  But Rs. One lakh is accounted in Fy 2018-19 as income only, though service is not rendered.  That means Income received, but corresponding expense is not incurred in that particular year. Hence No matching concept.
Yes.  Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  Here Rs. One lakh is accounted in Fy 2018-19 as Creditor/Advance income only .  If service delivers in FY 2019-20, advance income shown in 2018-19 FY is adjusted as income earned in the year FY 2019-20.  Because service delivered and income earned are matched in FY 2019-20.
4. Recognition of Revenue
Cash is received
Revenue is earned
5. Recognition of Expense
Cash is paid
Expense is incurred
6. Accuracy
7. Suitable for
Not for profit / Govt / Charitable organisations
Business/ Commercial organisations
8. Recognised by Govt
Not by Companies Act, 2013
By Companies Act, 2013
9. Focus on
Profit and Loss
10. Treatment of Prepaid expenses
Charged to current year profits
Recorded as Assets in Balance Sheet
11. Treatment of outstanding expenses
Not recorded
Recorded in Debit side of  Profit and Loss Account and Liabilities side of Balance Sheet
12. Recording of Credit Purchases and Credit Sales

Saturday, June 1, 2019

Deposit Works And Departmental Charges

Deposit Works


 Departmental Charges

Ø  Source: 18th chapter of Engineering Code


Ø  Definition – The works which are executed by Railways for other Govtdepts, private firms or individuals.  So the cost is met from non-railway sources.


Ø  In simple, the works, the cost is met from other than railway funds are called as Deposit works.


Ø  Examples of Deposit Works  


1)    Level Crossing required by the canal dept 10 years after the opening of line

2)    culvert required by the Irrigation dept or a private individual

3)    Electric/telephone wires required to be laid by Electric supply co or Telephone company over or under Railway line.


Ø  The concerned Dept/private firm/individual should approach the Railways for work executed duly furnish a rough sketch of the work & other relevant particulars.


Ø  If agreed to execute such Deposit works by Railways:-


1.   Other Govt Depts – should accept the charges leviable to meet the cost of plans and estimates of the required works.


2.   Private parties – should deposit the charges leviable to meet the cost of plans and estimates of the required works with the Railways.  However such charges (cost of plans & estimates) should be adjusted against the Departmental Charges, in case, the proposed works are subsequently carried out.


Ø  After obtaining the acceptance or cost of the plans and estimates has been deposited with the Railways, the detailed plans & estimates of the required works should be prepared and got accepted by the applicants.


Ø  As and when excess is anticipated, the same should be intimated to the concerned parties and got acceptance/deposit the excess charges as the case may be. 


Departmental Charges : These charges should be levied to cover the cost of tools & plant and of establishment supervision.  These charges levied at 12.5% on the total cost of the Deposit work (wages & material) include the cost of land.


Ø  Booking of expenditure: The amount deposited by the private parties should be credited to the “Deposit Misc” and the expenditure incurred on the said Deposit works should be charged/debited to the same Head “Deposit Misc”.


Ø  A separate register of Works should be maintained for all Deposit works in a Division.  Separate account should be kept for each Deposit work in that Register.  The postings in this Register should be totaled up and reconciled with the General Books monthly.  In case of works undertaken for other govt depts., suitable remarks as to the amounts adjusted monthly should be given in the register.  In case of private parties, the amount should be reconciled with the “Deposit Misc” head monthly and a certificate of reconciliation recorded in the register.


Ø  As and when anticipate the expenditure exceeds sanctioned estimate or sanctioned allotment of deposit made, the Executive Engineer should prepare the Revised Estimate and got sanctioned by the competent authority.


Ø  Completion:  on the completion, an intimation of the date of completion should be sent to the Accounts officer. Completion report in Form E1706 should be prepared showing the variations of actual expenditure with the sanctioned estimate and furnished to the party for whom the work was executed. Unexpended balance lying at the credit of “Deposit Misc” should be refunded to the party.


Ø  Model of “Deposit Misc” Suspense head. The balance of this Head always Credit balance.


Deposit Misc A/c










Works executed



Cash deposited for executing the work



Refund of unexpended amount











Maintenance: All Deposit works in Railway premises should be maintained by the Railway administration at the cost of parties who applied for them.  Such maintenance charges should be recovered as follows.

(1) either a fixed percentage of the works, the rate being fixed by the General Manager.

(2) or actual expenditure (including departmental charges).

Ø  The Accounts Officer is responsible for recovery of Maintenance & other charges.

Deposit Works – SPV (Special Purpose Vehicle) having Govt participation

Ø  20 % of the estimated cost to be deposited initially, if the work is Rs. 3 Lakhs or more.

Ø  It is treated as Revolving Fund.  Replenished from time to time at a frequence of 2 weeks/monthly/quarterly intervals.

Ø  Replenishment through Letter of Credit also allowed. The Period should be at least one year after the completion of works.


Departmental Charges:

Ø  Source: 1137E

Ø  Rate: 12.5 % on the cost of Deposit Work (Wages & Material and cost of land, if any)

Ø  In case any other Dept levied Departmental charges are more than 12.5 %, the same is charged on reciprocal basis.

Ø  To cover the cost of tools & plant and the establishment supervision.

Ø  These charges should be levied to cover the cost of tools & plant and of establishment supervision.  These charges levied at 12.5% on the total cost of the Deposit work (wages & material) include the cost of land.

Ø  The above rules do not apply to works of ROB/RUB in replacement of existing manned LC Gates taken up on BOT (Build, Operate & Transfer) basis.

Remission of Departmental Charges (1138 E)

Ø  The GM may, at his discretion, waive wholly or partially, provided that


1.   The Railway gains some advantage, not necessarily financial, by such remission.,

2.   The reasons for such remission are recorded in each case

3.   Concurrence of PFA

4.   Non incurrence of extra charges on account of tools & plants and establishment supervision does not in itself constitute sufficient justification for such remission.


Ø  In case of Assisted or Private sidings:


1.   When a portion of the work is permitted to be executed by parties, partial remission of departmental charges may be allowed.

2.   Up to Rs. 10 Lakhs.

3.   If the parties apply for further remission (beyond Rs. 10 Lakhs), a reference should be made to the Railway Board