Railway Accounts Department Examinations

Showing posts with label Major Heads. Show all posts
Showing posts with label Major Heads. Show all posts

Friday, August 14, 2020

Finance Accounts and Capital & Revenue Accounts

 

Finance Accounts and Capital & Revenue Accounts

·         Indian Railways is a Departmental Commercial Organization.  So not only secure essential requirements of Commercial Accounts, but also conforms to the Government Accounts. So it prepares Capital & Revenue Accounts and Finance Accounts to comply the Commercial Accounts and Government Accounts respectively

Commercial Accounts:

·         Also called as Capital and Revenue Accounts.

 

·         Recorded in such a way;

1.       How its Capital has been utilised (Balance Sheet)

2.       How it (IR) stands in relation to its Debtors and Creditors (Balance Sheet)

3.       Whether it (IR) is gaining or losing (Profit & Loss A/c)

4.       Whether the sources of its gains or losses

5.       Whether it is solvent or insolvent+

 

·         So, the Accounts of Railway presented in such a form as to facilitate a review of Railways as a Commercial undertaking.

 

·         To be included in Annual Report of IR

 

·         Sources :

1.       Revenue  - Revenue Allocation Register (RAR)

2.       Register of Earnings/Revenue 

3.       Registers of Capital, DRF, DF etc  - Works

 

·         Due date : 15th September or any other date prescribed by the Railway Board from year to year

·         Financial Results cannot be gauged correctly unless transactions recorded separately for Revenue and Capital

 

·         Loan A/c  - Assets created out of Capital only

 

·         Block A/c - Assets created out of all sources of finance (Capital + DRF + DF + RRSK + RSF)

 

·         Consists of : Statements of

1.       Authorised Capital

2.       Stock

3.       Loans, Debentures

4.       Receipts & Expenditure of Capital A/c

5.       Capital expenditure details for the year

6.       Capital A/c

7.       Revenue A/c

8.       Distribution of Earnings/Revenue and working expenses of worked lines

9.       GWE - Gross Working Expenses - Summary

10.   GWE - Gross Working Expenses - Details

11.   Earnings/Revenue

12.   Outstanding Earnings/Revenue (Traffic Suspense & DR)

13.   Net Revenue A/c

14.   DRF A/c

15.   Erstwhile Demands 1 & 2 / Major Head 3001

16.   Development Fund A/c (DF)

Government Accounts:

Government Accounts are kept in 3 Parts - Flow Chart


Government Accounts




 

 

  ·         Also known as Finance A/cs

·         Duly classified as per prescribed rules of Government

·         Object: Systematic record of all Receipts & Expenditure classified under certain appropriated headings.

·         Railway Fund:

 

1.       Though the Railway transactions form the part of Consolidated Fund, Contingency Fund & Public Account, they are accounted in the pro forma "Railway Fund"

2.       In the books of CAS - Central Accounting Section, RBI/Nagpur

 

·         Extra Railway Transactions:  Railway Audit expenditure  - booked in Railway Accounts for convenience purpose, though they do not pertain to Railway Revenue & Expenditure.

 

Structure of Booking of expenditure / earnings in Indian Railways

Hierarchy

 

Example:

 HRA of PFA

 

Description

 

 

 

 

 

Major Head

 

3002

 

Indian Railways

Commercial Lines -

 Working Expenses

 

 

 

 

 

SMH -

Sub Major Head

 

01

 

General Superintendence

& Services

 

 

 

 

 

MH -Minor Head

 

200

 

Financial Management

 

 

 

 

 

Sub Head

( Subordinate Head)

 

210

 

Accounts

 

 

 

 

 

Detailed Head

 

211

 

Officers

 

 

 

 

 

Object Head

( PU -Primary Unit)

 

04

 

HRA -

House Rent  Allowance

 

·         Final Allocation / classification of HRA of PFA - 03-0211-04

 

·         Note:  Still, allocation structure aligns with erstwhile Demand No. 03 - for Sub Major Head 01 -" General Superintendence & Services"

 

·         Monthly Account Current /Annual Account Current - complies the Finance A/cs

 

·         Railway Accounts further classified into 1. Commercial Lines  2. Strategic Lines

 

·         Strategic lines exists in 4 Zonal Railways.   They are NR, NFR, NWR & WR

 

·         Recoveries (of overpayments in last year) - shown as Earnings/Revenue in Current year.

 

·         However, recoveries due to difference in attendance of previous year - should be shown as reduction in the expenditure only in current year.

 

·         Credits up to Rs. 10 thousands pertaining to closed works - to be post as Earnings/Revenue

 

·         Para 217A -  Allocation of Receipts & Expenditure 

 

A.      The primary responsibility for the allocation of all receipts and payments rests with the concerned departmental officers.

 

B.      Each bill or voucher received from them should show the correct allocation of the receipt/expenditure in the fullest detail.

 

C.      The Accounts Department is responsible for seeing, to the extent it is possible for them to do so, that the allocation shown on the initial document is not prima facie incorrect.

 

·          Correct classification should be followed in recording the expenditure in accounts irrespective of whether provision in the budget has been made under correct budget head.

 

·         In order, however, to avoid undue variation between the budget and accounts figures, changed in accounting classification will not ordinarily be introduced during the course of the year.

 

·         In the case of works, the allocation of which has to be changed during the course of a year from one head of expenditure to another, classification of expenditure in that year should follow the original allocation. The change should be given effect to from the beginning of the next financial year only after making necessary provision in the Budget at the Budget stage or at the Revised Estimate stage to cover not only the estimated expenditure for the budget year but also write back of the expenditure incurred from the commencement of the work to the end of the previous year.

 

Link Heads between Govt Accounts & Commercial Accounts

 

 

Demands Payable

Labour

Traffic

Bills Recoverable

Revenue / Capital

Revenue

Capital

Revenue

Revenue

Always having

Credit balance

Credit balance

 Debit balance

Debit balance

Operated on

Expenditure side

Expenditure side

Earnings side

Earnings side

 

****

Thursday, May 7, 2020

Major Heads & Allocation Structure in Indian Railways

Major Heads & Allocation Structure in Indian Railways

Relevant Links

1) Finance Code Volume 2

2) List of Major Heads in Government Accounts

 

·         Nearly 500 Major Heads are existed in Government Accounts

 

Important Major Heads pertaining to Indian Railways

Major Head

Description

0021

Income Tax

0049

Interest Receipts (on HBA, Scooter Advance etc)

1001  

Indian Railways-Miscellaneous Receipts

1002

Indian Railways-Commercial Lines-

Revenue Receipts

1003

Indian Railways-Strategic Lines-Revenue Receipts

3001

Indian Railways-Policy Formulation,

 Direction, Research and other Miscellaneous

Organisation

3002

Indian Railways-Commercial Lines-Working Expenses

3003

Indian Railways-Strategic Lines-Working Expenses

3004

Indian Railways-Open Line Works (Revenue)

3005

Payments to General Revenues (Dividends etc)

3006

Appropriation from Railway Surplus

3007

Repayment of Loans taken from General Revenues

5002

Capital Outlay on Indian Railways-Commercial Lines

5003

Capital Outlay on Indian Railways-Strategic Lines

7002

Loans to Railways (to funds like DF, Capital Fund etc)

7610

Loans to Govt Servants (HBA, Motor Cycle, Computer etc)

8009

SRPF - State (Railway) Provident Fund

8011

Insurance and Pension Funds

(CGEIS -Central Govt Employees Insurance Scheme)

8115

Depreciation/Renewal Reserve Funds (DRF)

8121

General and other Reserve Funds (SBF)

8337

Deposits of Railways

8445

Railway Deposits (EMD, SD, Unpaid wages etc)

8660

Suspense Accounts -Railways (PAO- Pay & Accounts Office suspense,

 RBS- Reserve Bank Suspense, PSB - Public Sector Bank Suspense etc)

8670

Cheques & Bills

8671

Departmental balances

8672

Permanent Cash Imprest (Imprest held with Executive Officers)

8675

Deposits with Reserve Bank

8677

RIB - Remittances Into Bank

8787

Adjusting Account with Railways

8790

Accounts with States etc. (Railways)

8797

Exchange Accounts (Transfer Transactions)

 

Structure of Booking of expenditure / earnings

in Indian Railways

Hierarchy

 

Example:

HRA of PFA

 

Description

 

 

 

 

 

Major Head

 

3002

 

Indian Railways

Commercial Lines -

Working Expenses

 

 

 

 

 

SMH -

Sub Major Head

 

01

 

General Superintendence

& Services

 

 

 

 

 

MH -Minor Head

 

200

 

Financial Management

 

 

 

 

 

Sub Head

( Subordinate Head)

 

210

 

Accounts

 

 

 

 

 

Detailed Head

 

211

 

Officers

 

 

 

 

 

Object Head

( PU -Primary Unit)

 

04

 

HRA -

House Rent  Allowance

 

Final Allocation / classification of HRA of PFA - 03-0211-04

Note:  Still, allocation structure aligns with erstwhile Demand No. 03 - for Sub Major Head 01 -" General Superintendence & Services"