Railway Accounts Department Examinations

Showing posts with label TWFA. Show all posts
Showing posts with label TWFA. Show all posts

Tuesday, August 28, 2018

TWFA - Transfers Without Financial Adjustments

1990,1995,1997 (with out Books) & 1994 (with Books)                                         5 Marks  - short notes question   
ü Expanded as “Transfers Without Financial Adjustments:”

ü Relates to Adjustment of transfer of Rolling Stock assets from One Railway or Unit to another Railway or Unit.

ü Journal Entry is not required.    Also raising Debits on another unit is Not required.

ü Done only through adjusting into the financial books of the Two Railways or Units by Transfer Entry.

ü The amounts simply added up in the Opening Balances for the year of Unit taking over the asset, and

ü Deducted from the Opening Balances for the year of the Unit surrendering the asset.

ü Purpose/ Advantage  of T W F A  :

1.      To avoid effect on financial accounts and budgeting.
2.     To rectify the progressive balances in respect of the accounts of the previous year already closed.
ü True examples of T W F A are:
A.    When the former State Rlys were integrated with the Indian Rlys during the year 1952, all assets belonging to the former were taken over by the respective zonal Rlys
B.     The existing balances in SRPF transferred to NCSRPF.