## 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
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                      }