Railway Accounts Department Examinations

Showing posts with label differences between. Show all posts
Showing posts with label differences between. Show all posts

Tuesday, August 28, 2018

Difference between Vetting and Concurrence


Difference between Vetting and Concurrence

Vetting:   refers to conforming of a factual correctness of figure or statement of figures.
Examples: Vetting of Briefing Note, Estimates, Purchase Order etc.

Concurrence:  refers to agreeing a proposal in its entirety including the figures given under proposal.
Examples: Concurrence for construction of new bridges, replacement of machinery, etc.

Note: Extract from the comments given by F(X)/Dte in reply to information sought under RTI Act, 2005.

http://rti.railnet.gov.in/rtidata/Scanned/n4192.pdf

Wednesday, August 15, 2018

Book keeping - Differences between Reserves & Provisions


Most Important question  - 4 times asked so far
1984, 1987, 1988, 1995
Differences between
Reserves
Provisions
1. Appropriation of Profits.  Means not mandatory.
1. Charged against Profits.  Means Mandatory.
2. Reserves are only made when the business is profitable.
2. Provisions are made irrespective of profits earned or losses incurred by a business.
3. Debiting P&L Appropriation A/c
3. Debiting P & L A/c
4. Shown on Liabilities side of Balance Sheet
4. Shown on Liabilities side of Balance Sheet or Deduct from the Asset concerned.
5. Dividends can be paid out of Reserves.
5. Dividends cannot be paid out of Provisions.
6. Made to strengthen the financial position of a Business and meet unknown liabilities
6. Made to meet known liabilities such as doubtful debts.
7. Examples: General Reserve, Capital Reserve etc
7. Examples: Provision for Doubtful Debts, Provision for Depreciation, Provision for Tax, etc.,




Thursday, July 12, 2018

Differences between questions - Station Accounts 2016 (Without books)

Differences between questions - 
Station Accounts 2016 (Without books)

4.   Distinguish between the following pair of words (5x4 marks)

     i.           i.        Left luggage and Lost property
DIFFERENCES BETWEEN
  S.N.
Left luggage
Lost property
1
Tendered by passengers for temporary custody at stations, authorized to receive it.
Consignment., etc,  lost or unclaimed, other than booked consignments, found at Railway premises or in Trains
2
Left luggage ticket is issued to passengers describing the articles so tendered in the prescribed form.
All lost or unbooked articles found by  or made over to Station staff are immediately entered in lost Property register. 
3
Left luggage is returned to the passengers on receipt of prescribed charges based on the time.
If claimed and identified later, to the satisfaction of the Station Master, it may be delivered to the owner on payment by him of storage charges at the rates given in the tariff. Lost property not claimed is sent to be Lost Property Office under “Free invoice Way bill”

    ii.        Approximate Balance Sheet and Accounts Office Balance Sheet
DIFFERENCES BETWEEN
  S.N.
Approximate Balance Sheet
Accounts Office Balance Sheet
1
Purpose: Prepared when the Station Balance Sheet is not received from  a Station up to the close of the accounts for the month
Purpose: To bring into account the carriage bills and watching their realization from the firms, depts. Concerned ., etc.  Also incorporates the traffic cash received otherwise than through station balance sheets (e.g., advt fees, sale of grass., etc)
2
Basis is, Returns and documents, received in the Accounts Office from the concerned station.
Basis : The Carriage bills and the Traffic cash received otherwise than through station balance shets.



   iii.        Tatkal scheme and Emergency Quota
  S.N.
Tatkal Scheme
Emergency Quota
1
Literally it means Immediately
Also called as HO (Head Office/High Official  quota
2
Extra charges are levied i.e., 10 % of base fare for Second class and 30 % for all other classes
No extra charges
3
        Availed by any passenger
·         Availed by certain categories of passengers who are in need. Priority for 1) Cancer patients, Central Ministers, State Ministers, MPs, MLAs, other Higher Officials as per government protocol, other sick persons, On duty staff,  elderly women, women travelling alone, pregnant women, students travelling for interviews and children who need assistance in emergency travel situations.

4
Tatkal booking opens at 10 AM for AC Classes and 11 AM for NON-AC Classes on One day in advance of the actual date of journey excluding the  date of journey

Normally application for EQ should be rendered 6 to 12 hours prior to preparation of charts.  It is notified by the zonal Railway authorities on their convenience.

5
No supporting reason is required for booking Tatkal.
Normally the reason for urgency has to be submitted to the authorities who allot the EQ.
6
No request is required to get ticket under Tatkal
Written request must be signed by a Gazetted Officer or by a VIP or a High Official from Central or State Govt.


  iv.        Demurrage and Wharfage


DIFFERENCES BETWEEN
  S.N.
Demurrage
Wharfage
1
Charges levied for detention of Rolling stock beyond the authorized free time, caused either by the consignors in loading or by consignees in unloading consignments.
Charges levied after lapse of a certain period of free time on consignments awaiting dispatch or those available for delivery but not taken delivery of or not removed.
2
These are levied as penalty for detention of Rolling Stock
These are levied as penalty for use of Railways storage space



    v.        Gross Earnings and Gross Traffic Receipts.

DIFFERENCES BETWEEN
  S.N.
Gross Earnings
Gross Traffic Receipts
1
Accrual is the basis.
Actual is the basis
2
Accrued during the accounting period i.e., financial year ( irrespective of whether actually realized or not)
Actually realized during the accounting period i.e., financial year. (irrespective of pertaining to previous year or next year)
3
Represents Coaching Earnings plus Goods Earnings plus Sundry Earnings ( less refunds)
Represents Gross earnings plus Traffic Suspense.
4
Conforms Commercial Accounts
Conforms Government accounts

Sunday, June 3, 2018

Differences between Provision and Reserves




Book keeping -1984, 1987, 1988, 1995 (Most Important question)
Differences between
Provision
Reserves
1.       Meaning: Provide for a future expected liability.
1.       Meaning: Retain a part of profit for future use.
2.       Charge against profit.  That means Provision is created before arriving Profit/Loss. That is Debiting the P&L A/c
2.       Appropriation of profit.  That means Reserve is created after arriving the profit only. That is debiting P&L Appropriation A/c
3.       Provides for known liabilities and anticipated losses. Example:  Reserve for Bad & Doubtful Debts (RBDD)
3.       Provides for increase in capital employed.  Example: Reserve for creation of Capital Asset/General Reserve
4.       Presence of profit is not required to create Provision
4.       Profit must be present for the creation of reserves.
5.       In case of assets it is shown as a deduction from the concerned asset while if it is a provision for liability, it is shown in the liabilities side.
5.       Shown on the liabilities side.
6.       Dividend can never be paid out of provisions.
6.       Dividend can be paid out of reserves.
7.       Provisions can only be used, for which they are created.
7.       Reserves can be used for any use as per the decision of Management.

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Saturday, April 28, 2018

Differences between Government & Commercial Accounts

Differences between Government & Commercial Accounts



*      Are the Government Accounts and Commercial Accounts are same or not?  If not explain the differences between both with the backdrop of Indian Railways ? 

*      The Indian Railways is a departmental commercial undertaking of the Government of India. That means on one side, It performs as departmental functions like other Government depts such as Defence, Finance, CPWD, etc and on other side act as Commercial undertaking since Railways manufacture and sells the perishable commodity "TRANSPORT".  Hence the accounts of Indian Railways should comply the Government Accounts as well as Commercial Accounts.

*       To achieve this distinguishing accomplishment,  Indian Railways has performing dual role of maintaining  the both sets of Accounts with the help of Four suspense Heads i.e., 1. Demands Payable (DP) 2. Labour  3. Traffic Account  4. Demands Recoverable.  These are called "LINK HEADS", since the same are linking Government accounts and Commercial Accounts.  The discussion on LINK HEADS will be discussed separately in the same blog.

*      The following features are the differences between Government accounts and Commercial Accounts.



GOVERNMENT ACCOUNTS
COMMERCIAL ACCOUNTS
1. Government Accounts are maintained on CASH basis. It accounts Actual cash receipts and actual cash payments during the financial year.
A.  In Commercial Accounts, ACCRUAL is the basis. That means Accrued earnings, whether realised or not, and the liabilities incurred, whether actually disbursed or not.   In the above example,

2. The Govt. Accounts are technically known as "FINANCIAL ACCOUNTS"  and maintained in accordance with the requirements of Government Accounts.  These accounts compiled annually for the purpose of representing a Consolidated Fund duly classified under the heads of accounts prescribed for Government accounting system.

B.  The Commercial Accounts are technically knows as "CAPITAL AND REVENUE ACCOUNTS".   These accounts facilitate a review of finances of the Railway as Commercial undertaking.  These are compiled every and included in the Annual Report of the Railway.


3. Mostly Government Accounts are maintained on Single entry system.
C. Commercial Accounts are maintained on Double entry system. (For every Debit, there is equivalent Credit existed)

4. Government prepares Accounts of its incomings and outgoings only. (Not Profit & Loss A/c and Balance Sheet, since it is not commercial oriented)

D. Commercial firms prepares Profit & Loss A/c and Balance Sheet to know how much profit they earned during the year and what is their position (Assets and Liabilities) at the end of the year.

E. Government Accounts are designed "How little money it (Govt) need to take out of the pocket of the tax payer (citizen) in order to maintain its necessary activities i.e., welfare of the people, defence of the country etc".

E. Commercial Accounts are designed to show how much money the firm can put into the pockets of the owner/business in the form of Profit.