Test Balance Sheet

Test Balance Sheet

2016 Station Accounts without books -5 marks

·         Prepared in the Proforma Appendix XIII/Commercial Manual.

·         The TIAs should prepare Test Balance Sheet in respect of both coaching and goods traffic ( at the time of Inspection of Stations) and submit to the Accounts Officer along with their inspection reports.

·         Debit Side :  1) Closing Balance of previous month 2) The 'To-pay' way-bills for parcels and Motor cars eetc received during the current month to date 3) Any special items

·         Credit Side: 1) The collections on account of inward parcels and motor-cars, etc 2) any special credits 3) the outstanding on date.

·         The test balance for the closing period of the month should be made as soon as the returns are closed.

·         The outstanding being detailed on the reverse of the Balance sheet.

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Traffic Cash Witness

Traffic Cash Witness     

2016 Station Accounts without books -5 marks

·         From Traffic (Commercial) dept

·         Deputed to witness all operations connected with the remittances from the time the cash safes are made over to Cashier or his representative till the cash has been counted.

·         required to protect the interests of Station staff

·         They should not assist the work of counting the cash, except to help the station staff in case of discrepancy.

·         Sign the counterfoils of the CR Notes (Cash Remittance Notes) received with the Station earnings.

·         See that the entries of CR Notes are correctly made in the Cash Office Records ( Traffic Cash Check Sheet)

·         The cash safes should be opened one at a time personally by the Traffic Cash Witness, Cash office representative and RPF/GRP.  Locks and Seals of all the Safes to be examined.

·         Register of cash bags (A-917) - maintained by both Cash office and Cash Witness. All bags bring out from the Cash Safes are entered in that Register duly read out Station Name and painted number.

·         After all the columns in the Register of Bags are filled and signed by Cash witness, Cash office representative & RPF/GPF.

·         The next cash safe should not be opened until this procedure has been completed in respect of the cash safe in hand.

·         Any discrepancies should be brought to the notice of Commercial and Accounts officers for further investigations. But short receipt of cash bags are immediately informed to DRM, Chief Cashier, Traffic Accounts officer along with concerned Station.

·         Till the last moment i.e., counting, checking of empty bags (for any left over cash) etc, Traffic Cash witness should be present.

·         To avoid the above lengthy procedure and laborious manual work involved, the Railways are already moving towards Doorstep banking.

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Latest development in Appendix 3 exam

"There is no provision of re-evaluation/re-assessment in Appendix-III Examination . Rechecks of  totals of marks and arithmetic mistake are permissible only".

Changes in Appendix-3 of Indian Railway Establishment Manual, Volume – I(Revised Edition 1989)

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD)

No.A(E)/A3/2018/10/2

RBA No. 52/2018

New delhi, dt. 22.05.2018

Gerneral Managers/PFAs

All Indian Railways and PUs etc.

Sub: Changes in Appendix-3 of Indian Railway Establishment Manual, Volume– I(Revised Edition 1989)

Advanced correction Slip No. 244 Regarding addition in the Appendix – 3 of Indian Railway Establishment Manual, Volume-I (Revised Edition 1989) is enclosed herewith.

Kindly acknowledge the receipt.

DA: As above

(G. Kabui)

Director Finance(CCA),

Railway Board

O-O-O-O

Advance Correction Slip No.244 Indian Railway Establishment, Volume – I(Revised Edition 1989)

The following new para, namely 14 may be inserted at the end of Appendix-III

There is no provision of re-evaluation/re-assessment in Appendix-III Examination . Rechecks of  totals of marks and arithmetic mistake are permissible only.

(Authority Board’s Letter No. No.A(E)/A3/2018/10/2 dated 22/05/2018.)

Subsidiary Accounts Records

Subsidiary Accounts Records

5 marks question in 2016 Books & Budget (with books)

«  Para 311 of Indian Railways Accounts Code   Clickfor Chapter 3 of Accounts Code Vol. one

«  In addition to General Books i.e., 1) Daily Cash Book 2) Monthly Cash Book 3) The Journal 4) The Ledger, the following Subsidiary Accounts Records should be kept by each Accounting circle.

1.       Register of Earnings - Should record the earnings of the Railway under all the detailed heads of classification prescribed in Volume II of the Indian Railway Financial Code. These registers may be kept in convenient parts to facilitate application of statistics of earnings.

2.       RAR - Revenue Allocation Registers - A separate Allocation Register should be maintained for Abstracts A to N.   Posted separately for expenses whether by cash or book adjustment (through journal voucher -JV).

3.       Registers of Works - A collective record of expenditure designed

A.      Control of expenditure with reference to the Estimates

B.      For effecting budgetary control

C.      To enable any material modification occurring being spotted.

4.       Suspense Registers - Reflect transactions which cannot immediately be charged to final heads. Examples are 

A.      Demands Payable Register

B.      Misc. Advances Register

C.      Loans & Advances Register

D.      Deposits unpaid Register

E.       Deposits Miscellaneous Register

5.       Register of Works expenditure classified under different sources of finance i.e., Capital, DRF, DF etc

«  These records are of the utmost importance in as much as they are designed to exhibit the details of the transactions under Revenue, Capital, DRF, DF & Suspense heads.

«  Separate set of the above subsidiary registers should be maintained to record the expenditure met from the contingency Fund.

«  Posted directly from the Vouchers or Summary statement of vouchers like CO7.

*****

Management Accounting Topics for LDCE

MANAGEMENT ACCOUNTING – IMPORTANT AREAS

Note:

1)       The below mentioned areas are arrived based on past question papers of LDCE for Accounts Department of various Zonal Railways

2)      The list is not exhaustive.

v  Functions of Management Accountant

v  Distinguish between Management Accounting and Financial Accounting.

v  Ratio Analysis

v  Break Even Point

v  Different types of Budget like Capital budget, cash budget etc

v  Different types  of costing like marginal costing, incremental costing etc

v  Cost Benefit analysis

v  Funds Flow, Cash Flow

v  PERT and CPM

v  Productivity Test