Railway Accounts Department Examinations

Showing posts with label Books & Budget. Show all posts
Showing posts with label Books & Budget. Show all posts

Wednesday, July 8, 2020

Ways and Means


Ways and Means




*      Meaning: Methods & Resources for raising the necessary revenues for the expenses of a Nation/Country.

*      Monitoring by: Budget Division of Department of Economic Affairs under Ministry of Finance.

*      Object: To keep a watch over the progress of Actual with the Estimates (Budget) and follow up Ways & Means position of Govt of India.

*      Financial Review of Govt of India, wherein the Receipts and Expenditure position is monitored closely.

*      Ways & Means in IR - Account Current of Indian Railways as a whole is sent to Ministry of Finance for incorporating the figures of Railways Receipts and Expenditure as a part of Ways and Means of Govt of India.  

*      The Review should be as realistic as possible.  That is the reason; IR is switching over from Double Account Current to Single Account Current from the year 2017 October onwards, duly dispensing the Approximate Account Current.

*      For the purpose of Ways & Means, the Ministry of Finance receives Monthly Report (in the form of Account Current) consisting of Cash inflows and Cash outflows from all Ministries including Indian Railways.

Ways and Means – 4 parts

 

 

 

 

 

 

 

Revenue

 

Expenditure

 

Debt

 

Remittances

 





Saturday, May 23, 2020

Differences between Transfer Transactions and Remittance Transactions


Differences between
Transafer Transactions
Remittance Transactions
1. Refers between different units  in same Railway, different Zonal  Railways in Indian Railways and between Capital and Revenue accounts.
1. Refers between Railways and
other Govt Depts (Defence, Postal etc) & State Govts.
2. Heads operated: Transfer Divisional, Transfer Railways, Transfer Railway Revenue & Transfer Railway Capital.
2. Heads operated: PAO Suspense, AG Suspense, M-Remittances, Reserve Bank Suspense.
3.  The adjustments are made through issue and acceptance of Transfer Certificates between Accounting units in same Railway or between two Zonal Railways.  Also operation of contra transactions, for transfers between Capital and Revenue accounts.
3. The adjustments are made through issue of Advice of Clearance by the various Accounts Officers and memo of clearance by RBI.
4. Clearance: Through book adjustments (by preparing Journal entries) within Railways itself.
4. Clearance: Adjustments through Reserve Bank of India by operation of Deposit with RBI Account or Cheque Payments.


Sunday, May 17, 2020

PAO Suspense / AG Suspense


PAO Suspense / AG Suspense

«  Full form: Pay & Accounts Officer Suspense / Accountant General Suspense
«  Source: Chapter 4 of Accounts Code (Para No. 457 A)
«  It is one of the Suspense Heads operated in Indian Railways in respect of its transactions with other Central Govt Depts/State Govts.
«  For the settlement  of inter departmental  and  inter governmental transactions (other than defense and postal) arising in the  books of  Railway  Accounts Offices, PAO  suspense/AG suspense  head is operated.
«  Pay and Accounts officers / Accountant Generals will not settle transactions with railways through the Reserve Bank and vice-versa. All their dues will be paid/received at weekly intervals on cash basis i. e., by cheques or Government drafts.

«  Journal entries of PAO/AG

1) When a Claim is preferred 

                                PAO/AG Suspense        Dr.               xxxx
                                                To Service Head/Earning Head    Cr              xxxx
( Claim is preferred on Central Govt Dept or State Govt for rendering services to them by Railways)

2) On receipt of Cheque/Demand Draft

                                Remittance Into Bank A/c      Dr                  xxxx
                                                To PAO/AG Suspense          Cr                      xxxx
(On Receipt of Cheque/Demand Draft and cleared the PAO/AG Suspense Head)
«  The balance under this  head is  exhibited on  the Liabilities  Side of the  Balance Sheet of Indian  Railways. 

Remittance Transactions @ Indian Railways
Transactions
Between
Railways & other
Govt Depts
Outward
Inward
Remarks
Cash
PAO Suspense
PAO Suspense
All Depts in Central Govt
(except Postal & Defense)
Cash
AG Suspense
AG Suspense
State Governments
Adjustments through RBI
M - Remittance
Reserve Bank Suspense
Postal & Defense

«  For article on Reserve Bank Suspense - Click here
&&&&


Thursday, May 14, 2020

Integrated Budget

Integrated Budget

 

Integrated Budget

=

Revenue Budget

+

Works Budget

+

Earnings Budget

 

·         Source: Para 622 E (Engineering Code)

 

·         Object: In order to co-relate the decisions relating to Investment decisions, a consolidated Budget called Integrated Budget including Revenue Budget, Works Programme and the Machinery and Rolling Stock Programmes should be submitted by the Railways along with the preliminary Works Programme.

 

·         Prepared under the personal guidance of GM and with the assistance of PFA.

 

·          The Integrated Budget includes:

 

1.    Projections of Traffic and Earnings

2.    Works expenditure

3.    Revenue Working Expenses

4.    Estimated financial Results for the ensuing/ following year

5.    The projected Operating Ratio

6.    Rolling stock requirements on account of Replacement and Addition Account

 

·          Covering Note to the Integrated Budget:  Bring out the effect of Budget proposals on the efficiency of operations as indicated by the Operating Ratio and the financial viability of the system as revealed by the financial returns on Capital investment.

 

·         Revised Integrated Budget:  After discussion of the PWP – Preliminary Works Programme, a revised Integrated Budget should be submitted alongwith FWP – Final Works Programme duly taking into account the changes that might have taken place in the meantime.

 

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Tuesday, April 14, 2020

General Books & Subsidiary Books

General Books & Subsidiary Books

 

Source: chapter III of Accounts Code Click here

 

·         The first and foremost function of the Accounts Dept is "Keeping the accounts of the railway in accordance with the prescribed rules".   Clickfor article on Functions of the Accounts Dept

 

·         That is, General Books such as Daily Cash Book, Monthly Cash Book, Journal & Ledger and various Subsidiary Books.

 

·         Compilation of Accounts    - The following are the duties of the Accounts Officer:

 

1.       Collect and bring to account all the receipts and disbursements of Unit, i.e., Division, Railway (CO7s - Cash Order 7 for out goings & MCRs - Misc. Cash Receipts for Receipts)

2.       A) To transfer to other accounts circles the items pertaining to them which originate in his circle and  B) to adjust in his books of account the items of expenditure or receipts pertaining to his own circle and transferred to him by other Accounts officers; (Through RJVs - Revenue Journal Vouchers & CJVs - Capital Journal Vouchers)

3.       To make up a detailed account of his accounts circle monthly;  ( Monthly Account Current)

4.       To make up a detailed account of his circle for each year. (Annual Account Current)

5.       To prepare relevant financial reports for management information and action. (Appropriation Accounts, P & L Account, Balance Sheet etc)

 

Accounting Transactions

Two distinct headings

Cash transactions

Book Adjustments

Sub Headings

Disbursements

Receipts

Revenue

Capital

Four Pillars for entire Accounting transactions

CO 7

MCR

RJV

CJV

Code used in the documents

1

2

3

4

 

 

General Books :

 

These are the essential records for compiling the monthly and Annual Accounts.

 

 

                       I.               General Cash Book or Daily abstract of cash transactions

 

·         Form No. 304

·         To bring into all cash transactions of Division/Unit.

·         Posted daily.

·         A voucher (CO7 or MCR) duly signed by an Accounts Officer - support of every entry in it.

·         Balanced daily and reconciled with that in the Cashiers cash book.

·         It should be checked and signed by the officer in-charge of the section.

 

Daily Cash Book

Receipts

Payments

Debit side

Credit side

Particulars

Source

Particulars

Source

Station Remittances

Cash check sheets

Debits in various bills passed

CO7s

Receipts other than Stations

MCRs

 

 

Credits in various Bills passed

CO7s

 

 

Unpaid amounts remitted by cashier

Lists of unpaid wages

 

 

 

                  II.            Monthly Cash Book:

 

·          Posted daily from the totals in the Daily abstract of Cash transactions.

·         Kept in two parts  A. Debits (Receipts)  B. Credits (Disbursements)

·         It should be totaled after the transactions of the last day of the month have been posted.

·         The totals under the Heads RIB - Remittances Into Bank for Receipts and C & B - Cheques & Bills for payments should be reconciled with the statements received from the Banks.

 

                   III.         Journal

·          The transactions which do not involve cash  - should be recorded in the Journl.

·         Each entry in the journal should be supported by Journal Voucher (JV) duly signed by an Accounts Officer.

·         JVs, after preparation by the concerned sections and sent to the Books section for incorporation in the Accounts.

·         JVs should bear separate serial numbers distinct from that cash vouchers

·         Each journal entry should be supported by a narration giving detailed reasons for making adjustment.

·         Totalling of the Journal

·         Add cash totals to the Journal.

 

             IV.               LEDGER

·         The closing totals of the journal should be posted in the Ledger under various heads of accounts.

·         Also shows the progressive balances under those heads, the end of each accounting period.

 

Subsidiary Books:

In addition to the General Books, the following subsidiary records should be maintained.

                                                        I.            Registers of Earnings

                                                      II.            Revenue Allocation Registers

                                                    III.            Registers of Works

                                                    IV.            Suspense Registers ( DP, MAR, Loans & Advances, Deposits, Stores suspense, WMS, Traffic etc)

****


Wednesday, September 11, 2019

CIPS for e-Payments

CIPS  for e-Payments

 

üFull form – CIPS – Centralized Integrated Payment System

 

üNew system for arranging e-Payments in Indian Railways

 

üPriority area for system improvement to ensure online payments without manual intervention.

 

üPartner is SBI – State Bank of India

 

üCoordination  by Northern Railway

 

üImplemented by CRIS – Centre for Railway Information Systems

 

üPilot project of CIPS –COFMOW  in April, 2019. Rolled out in Indian Railways from September, 2019.  

 

üMandating SBI – State Bank of India to credit various accounts (payments) on behalf of Indian Railways  

 

üCIPS integrated with IPAS – Integrated Payroll and Accounting System

 

üEach Zonal Railway may register nominated cheque signing officials in IPAS

 

üThen Public key of the signatories can be shared to Bank in advance

 

üRequire authorized signatories to have digital token and they should be registered with IPAS.

 

üEnables seamless payments to outsiders in Indian Railways without manual intervention.

Material for MCQ – Multiple Choice Questions for CIPS

1. CIPS – Centralized Integrated Payment System

2.Partner  – SBI

3.Implemented by CRIS

4.Nodal Railway  – Northern Railway

&&&&

 

Wednesday, December 12, 2018

Capital Expenditure - Finance Code 2 - Common detailed heads - Unique feature


Capital Expenditure - Finance Code 2 - Common detailed heads - Unique feature

To save the space, the common detailed heads in Plan Head 11 - New Lines (Construction) are equally applicable to the following Plan Heads.

Plan Head
Description
14
Gauge conversion
15
Doubling.
16
Traffic facilities-Yard remodelling and others
18
Railway Research      
29
Road Safety Works  Conversion of Unmanned Level Crossings into Manned Level Crossings.
30
Road Safety Works Conversion of Level Crossings  into Road over Bridges/Road under Bridges.
31
Track renewals.
32
Bridge work.
35
Electrification projects.
36
Other Electrical works.
37
Traction Distribution Works
42
Workshops including Production Units
53
(i) Passenger Amenities.
(ii) Other Railway User Amenities.
64
Other specified works.
81
Metropolitan Transport Projects.
83
New Lines (Construction)- Dividend free projects