Railway Accounts Department Examinations

Saturday, November 28, 2020

Order of Precedence of Documents - GCC for Works 2022 April

Order of Precedence of Documents – GCC for Works, 2022 April 

Applicable for: Works Tenders/Contracts as per GCC for Works, 2022 April 

 Why: Any difference/ contradiction/ discrepancy - with regard to conditions  of tender/contract, specifications, drawings, bill of quantities etc., forming part  of the tender/contract - the following documents shall be the order of  precedence / priority. 

Order of Precedence of Documents - easy to remember L B S T D G U C U I B

 

SN 

Order of Precedence of Documents

Letter of Award / Acceptance

Bill(s) of Quantities

Special Conditions of Contract

Technical specifications (as given in Tender documents)

Drawings

GCC – IR Standard GCC updated with correction slips issued up to date of  inviting Tender or as otherwise specified in Tender documents 

7

Unified Standard Specifications (IRUSS -2019 updated with correction slips  issued up to date of inviting Tender or as otherwise specified in Tender  documents, if applicable in the Contract.

8

CPWD specifications 2019 Vol. I & II updated with correction slips issued up  to date of inviting Tender or as otherwise specified in Tender documents, if  applicable in the Contract.

Unified Standard Specifications (IRUSS -Works and Material) 2010 updated  with correction slips issued up to date of inviting tender or as otherwise  specified in the tender documents, if applicable in the contract.

10 

IR Specifications/Guidelines updated with correction slips issued up to date  of inviting tender or as otherwise specified in the tender documents.

11 

B.I.S. Codes (Relevant) updated with correction slips issued up to date of  inviting tender or as otherwise specified in the tender documents


Sl.Nos 6 to 11 – Updated with Correction slips issued up to date of inviting tender or as  otherwise specified in the tender documents. 

  • Sl.No. 7 to 9 – If applicable in the Contract



Key Takeaways (for MCQ): 

      1. Latest GCC – 2020 July  

2. First one is LOA  

3. Last one is BIS  

4. LOA stands for Letter of Award / Acceptance  

5. BIS stands for Bureau of Indian Standards  

6. IRUSS stands for Indian Railways Unified Standards Specifications  7. CPWD stands for Central Public Works Department 

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Tuesday, November 10, 2020

International Accounting Day - 10th November (1494 year)

 

INTERNATIONAL ACCOUNTING DAY TIMELINE

1494
Luca’s Literature

'The Father of Accounting,' - Luca Pacioli, introduces the double-entry bookkeeping system with his publications.

1851
Adding machine invented

Charles Xavier Thomas de Colmar invents the arithmometer, triggering the shift toward computations completed by machines.

1854
First professional accountants' organization

The Institution of Accountants in Glasgow become the first official organization representing and regulating the accounting profession. ​

1973
Let’s Make This (More) Official

The Financial Accounting Standards Board (FASB) is established in the United States.

2001
The Enron scandal

Enron's bankruptcy proved to be an audit failure in American history, bringing new regulations to the accounting profession. ​

Friday, November 6, 2020

On cost charges in Workshops

 On cost charges in Workshops



  • Meaning: 


  1. The expenditure which cannot be directly allocated to the product or service and

  2.  can only be apportioned on some logical basis


  • Another name is Overheads


  • On Cost charges - 3 types


  1. Shop On Cost (SOC)  - comprising Labor and Materials


  1. General On Cost (GOC - comprising Labor and Materials


  1. Administrative On Costs (AOC) .  Also called as Proforma On Cost (POC)


  • On costs are always expressed and levied as a percentage of Direct labour including incentive Bonus and overtime paid in that work order.


  •  Annual Budgeting is required. 


  • Shop On cost and General On cost need to be charged to all types of works executed at the workshop irrespective of their nature.



  • Quarterly Review: 

  1. A review of efficiency of overhead percentages should be made quarterly with reference to total actual expenditure incurred vis-à-vis that recovered at the overhead percentages.

  2. A comparison of these actual overheads with recoveries made through estimated percentages will reflect over/under charges for the month under different overheads

  3. If these are found unduly large, the percentages are revised without waiting for the Annual On cost Budget so as to minimize the difference between the actual and the predetermined percentage.

  4. The Under / Over charges at the end of the year should be less than 5% so as to make On cost budget realistic and the same must be cleared through the final Heads before the end of the Financial Year.

  5. Senior scale/JA grade executive officer in charge of Production Control Organization should review the trend of on-cost budget every quarter, jointly with workshop Accounts Officer

  6. The outcome of this review in the form of management summary shall bring to the knowledge of Chief Workshop Manager for the management review and ‘on-cost’ control exercise


Shop On Cost (SOC)

  • All on cost incurred within a Shop or Section.  Examples are 


  1. Wages, overtime etc. of Shop apprentices, JEs, unskilled labour. 

  2. Leave pay, idle time, sick hurt and holiday pay, travelling allowances and arrear pay, and pay allowed to men on volunteer duty or part-taking in sports.

  3. Shop scrap (credit)

  4. Stationery and forms

  5. Defective and spoilt work, in the case of experimental work

  6. Power chargers, whether electric pneumatic, gas or hydraulic which can be directly allocated to shops.

  7. Wages of operators of automatic machines, not otherwise allocated

  8. Wages, overtime etc. of men employed on mechanical transport in the shop

  9. Wages, overtime etc. of all general labour in shops including those employed on transport.

  10. Hammer driving in shops

  11. Small differences between muster rolls and time sheets

  12. Consumable stores (Lubrication oil, waste, sponges, etc.)

  13. Charges for coal and coke in the smithies

  14. Lighting charges in shops

  15. Fine creditable to works

  16. Suspension allowances

  17. Wages etc. of shop messengers

  18. Working expenses of crane and shunting engines, lorries, autotrucks, traversers etc.

  19. Small tools for shop use

General On Cost (GOC)

  •  Denotes all On cost charges common with more than one Shop. Examples are:


  1. Wages and allowances of staff of Yard shop

  2. Wages & allowances of Workshop apprentices not attached to shops. 

  3. Freight charges .

  4. Electrical power.

  5. Hydraulic and pneumatic power and gas

  6. Replacement of articles stolen or lost

  7. Expenditure on apprentices’ school and hostel

  8. Working expenses of crane and shunting engines, lorries, auto trucks, traversers etc.,

  9. Working expenses of central works pumping plant.

  10. Experimental work

  11. Water charges

  12. Sanitary arrangements

  13. Messengers’ wages, uniforms etc.

  14. Consumable stores for general use

  15. Maintenance of mess rooms

  16. Yard lighting.


Administrative On Cost  or Proforma On Cost


  •  Charged  -   percentage of direct labour  - to RSP works and all works done for outsiders. 


  • Profit will also be charged for work done for outsiders.


  • To  make competitive, GM can waive whole charges or reduce with concurrence of PFA. 


 

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Sunday, November 1, 2020

Questions analysis (short and Essay) - GRP paper in Appendix3 exam

 


Compiled by Shri Sreedhar, AA/Secunderabad Division


Click for Repeated Short notes questions in GRP paper of Appendix3 exam


Click for Essay questions in GRP paper of Appendix3 exam




Essay Questions - Repeated ones in GRP paper in Appendix3 exam

1

What are the various Railway Funds that are financed from Railway Revenues? For what purpose is the amount in each Fund utilised and how is this purpose served when there is insufficient balance in the Funds?

1983

1988

1993

1999

2001

1982

1986

2006

2

What do you understand by ABC analysis in Inventory
Control?  Has it proved useful on the Railways?

1983

1985

1989

1992

2010

 

 

 

3

How Traffic Book is reconciled with the General Books?

1983

1997

 

 

 

 

 

 

4

Distinguish betweed Exchequer Control and Budgegary Contorl and discuss in detail the links between the two.  How are these controls exercised on your Railway? Role of cash budget as a tool of expenditure control(i.e. exchequer cont)

1983

1993

 

 

 

 

 

 

5

What is a 'Station to Station' rate? Under what circumstances it is justified? What safeguards would you suggest to avoid
any misuse of such a rate?

1983

2000

 

 

 

 

 

 

6

Describe the appropriation accounts alongwith various
annexures.  What are reasons for misclassification of expenditure?

1984

1987

1992

 

 

 

 

 

7

Describe the system of classification, collection, and distribution of the ON-COST expenditure in Railways
Workshops.

1984

1987

 

 

 

 

 

 

8

Discuss how transfers of stores from one Depot to another Depot on the same Railway are dealt within Stores Accounts. What are the various types of items that are adjusted through the Stock Adjustment Account and with what effect?

1984

1990

1994

2016
short

 

 

 

 

9

Discuss the station outstandings arise and how these are cleared.  What types of these outstandings tend to remain
uncleared for long periods and why?

1984

1994

 

 

 

 

 

 

10

How Traffic Account and Demands Payable are said to help in converting commercial accounts to Government accounts.
Discuss this by giving examples

1985

2010

 

 

 

 

 

 

11

Enumerate the various Advances of Government money
available to employees.  What are the main features of House Building Advance?

1985

1988

 

 

 

 

 

 

12

Describe the journey of station earnings from Railway Station to the Railway Account in the Reserve Bank of India.

1985

2006

 

 

 

 

 

 

13

How are surplus and scrap stores disposed of?  How are the sales shown in the books of accounts at different stages?

1985

2004

 

 

 

 

 

 

14

Describe in detail the procedure by which the Parliament exercises control over Indian Railway's Finances?

1986

1993

1997

2015

 

 

 

 

15

what is common between the heads "Traffic Account", "Labour" and "Demands Payable"? Describe how they are
operated and what is their utility?

1986

1993

 

 

 

 

 

 

16

What are the "Funds" operated on the Indian Railways?  How are they financed and for what purpose are they used?

1986

1992

 

 

 

 

 

 

17

Mention three types of Frauds that are possible in connection with Railway working and discuss in detail the procedural safeguards that exist which will ensure their detection.

1986

1994

 

 

 

 

 

 

18

Comment briefly on importance of local inspections.  What important points you would look into while inspecting a major Goods Shed or a major Stores Depot or the Office of AEN?
How will you bring important irregularities to the notice of Executive Depatements?

1987

1990

 

 

 

 

 

 

19

Explain the terms "SHOP-ON-COST", "GENERAL-ON-COST" and
"PROFORMA-ON-COST".  Why and how are they levied on work done in a Railway Workshop?

Click for Answer

1987

1984

1988

1999

2001

2006

 

 

20

What is meant by "Traffic Suspense" and what does it consist of ?  What practical steps would you suggest for expenditious clearance of outstandings under this head?

1987

1992

1996

2010

 

 

 

 

21

What are the different sources of obtaining stores for the Railway and what precautions are taken to ensure that they have been procured in the most economical manner and as exdpeditiously as possible? Procurement of Stores.

1987

1993

 

 

 

 

 

 

22

Why is stock verification necessary?  What is the mechanism for stock verification on Railways?  How are the results of such verification recorded and dealt with?

1987

1999

2004

2006

2015

2016

 

 

23

Describe briefly the procedure for remittance of cash by stations.  What checks are exercised to ensure that the cash collected at the stations is correctly remitted?  Do you have any suggestions to give in this regard?

1987

1992

1999

 

 

 

 

 

24

Stations prepare Balance Sheet.  Why should then separate
Accounts office balance sheet be prepared?

1989

2017

 

 

 

 

 

 

25

Role of Audit and Audit objections on the Railways?

1990

2016

 

 

 

 

 

 

26

Workshop Manufacturing Supsense (WMS)

1990

1992

1996

2004

2010

2016

 

 

27

Inspection of GOODS SHED, STORES DEPOT, PARCEL OFFICE,
IOW OFFICE, TXR's office

1990

1982

1993

 

 

 

 

 

28

Arbitration clause

1993

2010

 

 

 

 

 

 

29

Estimates

1994

1995

1996

 

 

 

 

 

30

How the check exercised by the organisation of Principal Director of Audit(Statutory Audit) is different as compared to the one exercised by Accounts Department?  Discuss very briefly the various forms in which Audit Objections are compiled and communicated.

1996

2016

 

 

 

 

 

 

31

What do you understand by Budget and how the Budged for expenditure is compiled on Indian Railways?  Also discuss briefly the various stages of its review.

1996

2016

 

 

 

 

 

 

32

TENDERS

1996

2004

 

 

 

 

 

 

33

What are the various parts of Traffic Book? While discussing the importance of each part, explain how Traffic Accounts
office proves their accuracy?

1997

2004

2016

 

 

 

 

 

34

Prepare a check list for guidance of an accounts officer of the store accounts branch attendint Tender Committee meeting

1997

2016

 

 

 

 

 

 

35

Is it necessary to maintain a single set or a double set of works register?  Please discuss, highlighting the merits and the demerits.  What are the main problems being encountered for drawing up the Completion Report of a
Work?

1999

2006

 

 

 

 

 

 

36

Bills recoverable

1999

2017

 

 

 

 

 

 

37

Detail the types of frauds which cannot be detected by internal check of station returns in the Traffic Accounts Office, explaining the TIA's role in this regard.

2001

2006

 

 

 

 

 

 

38

What is specific fuel consumption?  Describe measures to
reduce it

2015

2016