Railway Accounts Department Examinations

Showing posts with label 2004. Show all posts
Showing posts with label 2004. Show all posts

Thursday, September 13, 2018

Operating Ratio - 2004 Books & Budget (without books)

Books & Budget 2004 (Without Books) - Operating Ratio Problem
Qn.  Given below are certain figures in crores of rupees:-
           
(All figures in Rs. Crores)
Particulars
Amount
Gross Traffic Receipts (Including Suspense of  100)
35000
OWE - Ordinary Working Expenses
25000
Appropriation to DRF
1200
Appropriation to Pension Fund
3500
Dividend to General Revenue
1700
Appropriation to DF - Development Fund
500

Find
1)      Calculate the Operating Ratio from the above set of figures
2)      What is the amount, which can be appropriated to Capital Fund ?
Solution:
Ready reckoner for calculation of Operating Ratio

SN
Particulars
formulae
Amount

SN
Particulars
formulae
Amount
Finding
1.
Coaching Earnings (less refunds)


10
OWE - Ordinary Working Expenses

25000

2.
Goods Earnings (less refunds)


11
Appropriation to DRF

1200

3
Traffic Earnings
(1 + 2)

12
Appropriation to Pension Fund

3500

4
Sundry Other Earnings (less refunds)







5
Gross Earnings
(3 + 4)
34900
13
Gross Working Expenses
(10 + 11 + 12)
29700
O.R = 13/5 x 100= 29700/34900 x 100 =  85.10 %
6
Suspense

100
14
Suspense

0

7
Gross Receipts
(5 + 6)
35000
15
Gross Expenditure
(13 + 14)
29700

8
Miscellaneous Receipts

0
16
Miscellaneous Expenditure

0

9
Total Revenue Receipts
(7 + 8)
35000
17
Total Revenue Expenditure
(15 + 16)
29700
Net Revenue/Net Receipts
 = 9 - 17 = 35000 - 29700 = 5300

Surplus = Net Revenue/Net Receipts minus Dividends paid.
Surplus = 5300 - 1700 = 3600
Surplus - Appropriation to Development Fund = Balance left over for appropriating to Capital Fund
= 3600 - 500 = 3100

Hence Answer

1) 85.10 %

2) 3100

Note:
To find Gross Earnings, we have to deduct the suspense from Gross Receipts.  (like Gross earnings plus Suspense = Gross Receipts)
Hence Gross Earnings = 35000 -100 = 34900   

  ******