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)

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Happy New Year

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Material Management - 2018-19

Material Management  - 2018-19

Source:  Year Book 2018-19

 

·         Total purchases - Rs. 62,134 Crores

 

Procured by	%
Zonal Rlys & PUs	63
Railway Board	36
Others	1

 

·         Total Number of Depots - 262

 

·         Total Number of items stocked - 1.3 Lakh

 

·         Scrap Sales - Rs. 4192 Crores

 

·         E-Procurement started in the year 2010-11

 

·         Single Web portal IREPS - Indian Railways Electronic Procurement System -   for Goods, Services, Works, Earning, Leasing & Sale of Scrap

 

·         IREPS - आपूर्ति - (Apoorthi) Android app  - enables access to useful information at one go.

 

·         System of Lot Publishing, instead of traditional catalogue publishing, has been rolled out for re-Auction in January, 2019.  This has made paradigm shift in the method of disseminating information pertaining to the available scrap for sale to prospective bidders in a transparent manner.

·         Common use Goods and Services available on GeM are reserved for procurement through GeM portal ( Government E Marketplace

Turn Over Ratio - TOR

 

·           Meaning: Ratio of Stores Balances at the end of financial year to Total issues during the year.

 

·         Formulae = Stores Balances as on 31st March/Total Issues during the year x 100

 

·         Stores Balances = Stores in stock + Stores in Transit + Purchase Suspense + Sales Suspense + Stores Adjustment Account

 

·         Calculated separately with fuel and without fuel

 

·         Expressed in Percentages

TOR	2014-15	2017-18	2018-19
Without Fuel	15	10	9
With Fuel	-	8	6

 

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Helicopter money

Helicopter money

«  It is a buzzing word during the Corona Crisis.

«  Meaning:  central banks (like RBI - Reserve Bank of India) printing money and making payments directly to the individuals or the private players.

«   First coined by Milton Friedman in 1969, when he wrote a story/parable of dropping money from a helicopter.

«  When:  When Interest rates near Zero and the Economy in rercession (i.e., in liquidity trap). Also to prevent deflation.

«  It is an alternative to the Quantitative easing (QE).  QE is a monetary policy whereby a central bank buys predetermined amounts of government bonds or other financial assets in order to add money directly into the economy.

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Heritage Rolling Stock

Heritage Rolling Stock

·         Source: Indian Railways Rolling Stock Code Chapter 7 Para No.734

·         The following are the Heritage Rolling stock

1.       All types of Steam locomotives

2.       All Narrow Gauge coaches

3.        Wooden body/Saloons/special coaches of All Gauges.

4.       Oldest of a particular kind/class/special purpose Rolling stock

5.       Rolling stock of over 100 years old.

6.       Rolling stock identified/selected to be of special significance

Sale of Heritage Rolling Stock

·         By Heritage Directorate of Railway Board only

·         Offered for sale to other Govt/Quasi Govt, Private institutions/individuals in the country as well as abroad, if it is not required by the Railways.

·          Sale to educational institutions/museums/Govt bodies/Trusts – 50% of the scrap value without adding overhead charges, profit and antique value.   – applicable for sale within the Country.

·         Waival in sale price  - in specific cases by the Competent Authority in consultation with associate finance.

·          Sale to private rail-road companies /Institutions/Trusts/Individuals shall be made at full scrap value without adding overhead charges, profit and antique value.

·         Special relaxation or discount shall be offered in deserving cases by the competent authority in consultation with Associate Finance.

·         In all cases, the cost of transportation/restoration shall be borne by the purchaser in full.

·         All cases of sale to parties abroad shall be referred to Railway Board for a decision.

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Estimates and Verification of Estimates - Engineering Code

Estimates

Most important question

 

Click for article in PDF

·         7th Chapter of Engineering Code  - 7 Kinds of Estimates

 

·                  Estimate meaning: To form an approximate judgment regarding cost of the work or Calculate the approximate cost of the work.

 

·                  Estimates required for :

 

v  Construction or Purchase of new works or Assets

v  Renewals & replacements of existing works or assets

v  Scrapping or dismantling or abandonment of existing works or assets

v  Reconditioning of existing works or assets

v  Repair works

v  Temporary & experimental works

v  Renewals & replacement of worked lines

v  Renewals of Ballast

 

·         Estimates not required for

 

Recondition works	Renewal works (Revenue)	Repair works (Revenue)
Up to Rs. 1 Lakh	Up to Rs. 2 Lakhs	Up to Rs. 5 Lakhs

 

·         Currency of the Sanction:   5 years    ( 2 years, if work is not commenced)

 

·     Names of Estimates - easy to remember - A D S R P C C

 

SN	Estimate
1	Abstract Estimate
2	Detailed Estimate
3	Supplementary Estimate
4	Revised Estimate
5	Project Abstract Estimate
6	Construction Estimate
7	Completion Estimate

 

 

Open Line Works	Construction Projects	Remarks
1. Abstract Estimate	5. Project Abstract Estimate	For obtaining Administrative approval
2. Detailed Estimate	6. Construction Estimate	For obtaining Technical Sanction
3. Supplementary Estimate		Prepared both for Open Line Works & Construction Projects
4. Revised Estimate		Prepared both for Open Line Works & Construction Projects
Nil	7. Completion Estimate	Stock taking Estimate for Construction Projects

 

 

1.       Abstract Estimate:    (for Open Line Works)

 

·         Prepared to obtain Administrative approval of the Competent Authority.

·         To form a reasonable accurate idea of the probable expenditure and such other data

·         Consists of A. Brief Report,   B. Justification,  C. Specifications  & D. Funds required in Current year or not.

·         Source of Finance is to be identified i.e., Capital, DRF, DF etc for different items.

·         Inclusion of item in Works Programme/M&P Programme/RSP with Budget provision - Deemed to be the administrative approval of the Abstract Estimate.

 

 

2.       Detailed Estimate: (for Open Line Works)

 

·         Prepared to obtain Technical Sanction of the Competent Authority

·         Prepared in sufficient detail

·         Ensure that the cost should not exceed the Abstract Estimate.

·         Work should commenced after the technical sanction of the Detailed Estimate and provision in the Budget

 

The sanction of the Competent Authority to the Detailed Estimate of a work is called the  " Technical Sanction"

 

Detailed Estimate of Open Line Works consists of
Statement of Details of Estimated cost	Outer sheet consists of Abstract cost of work, Report, financial Justification & Allocation

 

·         If Administrative approval and Technical sanction - both within powers of GM - Sanction for the both can be accorded at the stage of Detailed Estimate, skipping the Abstract Estimate.

 

 

3.       Supplementary Estimates: (for both Open Line works and Construction Project)

 

·         Two occasions:

 

A. An item of work which ought to have been included in the estimate already sanctioned, but has not been included.

 

B. An item of work, which it is found later, should be considered as being a part of an estimate already prepared and sanctioned.

 

·         Prepared in the same form and same degree as the Main estimate

 

·         All purposes, supplementary estimate be treated as a part of Main Estimate.

 

 

4.       Revised Estimate: (for both Open Line works and Construction Project)

 

·         If the expenditure on a work likely to exceed the sanctioned one.

 

·         Prepared and submitted for sanction of the Competent Authority

 

·         Prepared in the same degree, same form like Original Estimate.

 

·         Comparative statement showing excesses/savings under each sub head.

 

 

5.       Project Abstract Estimate  (for Construction works)

 

·         Prepared to obtain the approval of Railway Board. 

 

·         Prepared from an Engineering Survey Report

 

·         Accompanied by A. Narrative report explaining the salient features and major items of expenditure B. Detailed estimates prescribed under various heads.

 

 

6.       Construction Estimate: (for Construction works)

 

Detailed estimates of all works in the Project are collectively known as " Construction Estimate"

 

·         Prepared from the Final Location survey report.

 

·         Divided into convenient sections like engine runs, branch lines, junction arrangements, sections based on topography, divisions etc.

 

·         In special cases work may commence by preparing the Part estimates for sub - works, before preparation of Construction estimate for whole Project . But the same (sub works) should not be redundant at the time of Project Construction estimate is prepared.  Examples are A. Preliminary works B. Final Location survey C. Project office D. Land acquisition etc

 

7.       Completion Estimate: (for Construction works)

 

·         Prepared in supersession of a Construction Estimate

 

Also called as Stock taking estimate

 

 

·         Shows in tabular form as shown below.

 

Amt of Sanctioned estimate	Actual expenditure as on date	Commitments as on that date	Anticipated further outlay	Total estimated cost	Differences between sanctioned cost and the estimated cost
1	2	3	4	5 (2+3+4)	6 (6-1)

 

·          Prepared with brief explanations  - Excesses - Rs. 10,000 or 10% which ever is less and Savings - Rs. 1 Lakh or 20% which ever is less

 

·          Prepared  - At the end of one of the first three financial half years after the date of "opening"  

 

 

 

Verification of Estimates

 

·         Important phase of the Control of Expenditure

 

·         Regular check by the Accounts Officer on all estimate before they are sanctioned by the Competent Authority.

 

·         Object: To avoid irregular expenditure

 

Main Points - Easy to remember -  P I B E C

 

Propriety of Expenditure	Ensure expenditure charged to Railways is legitimate & proper. Ensured canons of financial propriety as enunciated in Para 116F. Proper financial justification.
Incidence & classification of charges	Incidence = Source of Funds,  Classification = Allocation as per Finance Code volume II. Ensure both as per rules in force.  while certifying the Estimate, Accounts officer should clearly state that both have been verified. However, the estimate should not be delayed if any doubt in allocation. In such cases estimate should certify provisionally.
Budget provision in current year	Verified from the sanctioned budget allotment for the year
Errors & omissions - Freedom from	Executive is responsible for correctness of errors and omissions noted in the course of accounts verification. If not done, a check note appended to the verification certificate  duly pointing out the errors and omissions.
Competency of Sanction	As per MSOP - checked and certified about the Competent authority empowered to sanction the estimate.

 

Subsidiary points   - Easy  to remember  - P I C A D O R (means Bullfighter)

 

Proper distribution between Cash & Stores	Proper distribution is made of the estimated outlay between Cash & Stores
Incidental expenditure	Incidental expenditure that can be foreseen has been provided in the estimate
CRRM - Credit for Railway Released Material	Provided CRRM in case of renewal, replacement or dismantlement of works
Abstract Allocation of all items	Abstract allocation for all items
Departmental Charges for Deposit works	Work done for other govt. depts or private parties, ensure provision of Departmental charges
Outlay & Outturn - manufacturing operations	Outlay & Outturn should be shown distinctly
Rent Statements in case of Railway Quarters.	Ensure 6 % return in case of each class of staff quarters & other rent returning buildings