Railway Accounts Department Examinations

Showing posts with label 2015. Show all posts
Showing posts with label 2015. Show all posts

Thursday, September 13, 2018

Operating Ratio problem - Books & Budget 2015 (without Books)

Books & Budget 2015 (Without Books) - Operating Ratio Problem

Qn.  Work out following from the set of figures given below.

A) Operating Ratio
B) Net Receipts
 C) Surplus/shortfall

                      (All figures in Rs. Crores)
Particulars
Amount
Gross Receipts
1908
Suspense earnings
186
Misc receipts
57
Actual expenditure
1278
Suspense expenses
48
Appropriation to DRF
67
Appropriation to Pension Fund
81
Misc Expenditure
23
Dividends payable
73
Appropriations to DF
144
Appropriations to RSF
98
Appropriations to Capital Fund
144

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

1230
See Notes for calculation of OWE
2.
Goods Earnings (less refunds)


11
Appropriation to DRF

67

3
Traffic Earnings
(1 + 2)

12
Appropriation to Pension Fund

81

4
Sundry Other Earnings (less refunds)







5
Gross Earnings
(3 + 4)
1722
13
Gross Working Expenses
(10 + 11 + 12)
1378
O.R = 13/5 x 100=1378/1722 X 100 = 80.02 %
6
Suspense

186
14
Suspense

48

7
Gross Receipts
(5 + 6)
1908
15
Gross Expenditure
(13 + 14)
1426

8
Miscellaneous Receipts

57
16
Miscellaneous Expenditure

23

9
Total Revenue Receipts
(7 + 8)
1965
17
Total Revenue Expenditure
(15 + 16)
1449
Net Revenue/Net Receipts
 = 9 - 17 = 1965 - 1449 =516

Surplus = Net Revenue/Net Receipts minus Dividends paid.
Surplus =   516 - 73 = 443
Hence Answers are
 1) Operating Ratio = 80.02 %
2) Net Receipts = 516
3) Surplus = 443

Notes:
1 ) Finding OWE - Ordinary Working Expenses
OWE + Suspense = Actual Expenditure (similar to GWE + Suspense = Gross Expenditure)
OWE + 48 = 1278
OWE = 1278-48 = 1230
2 ) However Surplus 443 had a balance of 57, after

i) appropriation to DF - 144                                         }
ii) appropriation to RSF - 98                                        }  Total of 144+98+144 = 386 only against                                                                                              }    surplus 443
iii) appropriation to Capital Fund - 144                      }