MCQ Story

  

Story Behind MCQ

Source: General Expenditure Question Paper of Appendix2 Exam 2023 of WR - MCQ No.16 

Q. Material At Site account is a _________ head 

1. Major  B. Minor  C. Final  D. Suspense 

The Correct answer is D. 

Now it's time to check why A, B & C are not correct Answers. Also we should know, to make A, B, & C correct answers, what would be the Questions. 

With that, We can acquire good knowledge and also be ready to face other questions.  

Let's check:  

Major Head:  It is a top level (of 6 levels) in hierarchy of classification of Government expenditure  

Structure of Booking of expenditure / earnings in Indian Railways

Hierarchy		Example:   HRA of PFA		Description
Major Head		3002		Indian Railways  Commercial Lines -  Working Expenses
SMH - Sub Major Head		01		General Superintendence & Services
MH -Minor Head		200		Financial Management
Sub Head  ( Subordinate Head)		210		Accounts
Detailed Head		211		Officers
Object Head  ( PU -Primary Unit)		04		HRA -  House Rent  Allowance

Final Allocation / classification of HRA of PFA - 03-0211-04 

Note:  Still, allocation/classification structure aligns with erstwhile Demand No. 03 - for Sub Major Head 01 -" General Superintendence & Services" 

• Nearly 500 Major Heads exist in Government Accounts

Important Major Heads in Indian Railways (within brackets are Erstwhile Demand Numbers)

	Revenue Receipts X,Y & Z	Revenue Working Expenses  (3 to 14)	Capital Expenditure  (16)
Commercial Lines	1002	3002	5002
Strategic  Lines	1003	3003	5003

Strategic lines existed in 4 Zonal Railways i.e., NR, NFR, NWR & WR  

Important Major Heads pertaining to Indian Railways

Major Head	Description
0021	Income Tax
0049	Interest Receipts (on HBA, Scooter Advance etc)
1001	Indian Railways-Miscellaneous Receipts
1002	Indian Railways-Commercial Lines- Revenue Receipts
1003	Indian Railways-Strategic Lines-Revenue Receipts
3001	Indian Railways-Policy Formulation,  Direction, Research, and other Miscellaneous  Organisation
3002	Indian Railways-Commercial Lines-Working Expenses
3003	Indian Railways-Strategic Lines-Working Expenses
3004	Indian Railways-Open Line Works (Revenue)
3005	Payments to General Revenues (Dividends etc)
3006	Appropriation from Railway Surplus
3007	Repayment of Loans taken from General Revenues
5002	Capital Outlay on Indian Railways-Commercial Lines
5003	Capital Outlay on Indian Railways-Strategic Lines
7002	Loans to Railways (to funds like DF, Capital Fund etc)
7610	Loans to Govt Servants (HBA, Motor Cycle, Computer etc)
8009	SRPF - State (Railway) Provident Fund
8011	Insurance and Pension Funds  (CGEIS -Central Govt Employees Insurance Scheme)
8115	Depreciation/Renewal Reserve Funds (DRF)
8121	General and other Reserve Funds (SBF)
8337	Deposits of Railways
8445	Deposits
8660	Suspense Accounts -Railways (PAO- Pay & Accounts Office suspense,  RBS- Reserve Bank Suspense, PSB - Public Sector Bank Suspense etc)
8670	Cheques & Bills
8671	Departmental balances
8672	Permanent Cash Imprest (Imprest held with Executive Officers)
8675	Deposits with Reserve Bank
8677	RIB - Remittances Into Bank
8787	Adjusting Account with Railways
8790	Accounts with States etc. (Railways)
8797	Exchange Accounts (Transfer Transactions)

Minor Head:  It is a 3rd level (of 6 levels) in the hierarchy of classification of Government expenditure. 

Example: 05-0313-01 

Here Minor Head is 300. Other examples are 100, 200, 300 ……. 900.  

Maximum 9 Minor Heads are possible in each and every Sub Major Head / erstwhile Demand. 

In all erstwhile Demands (except 03) , Minor Head 900 is dedicated for Credits and Recoveries. 

In Erstwhile Demand No. 03, Sub Heads 190,290,390…..990 are dedicated for Credits and Recoveries.   

  

Revenue Allocation
1	2	3	4	5	6	7	8
D.No		Minor Head/Sub Head/Detailed Head				Primary Unit/Object of expenditure
0	5	0	3	1	3	0	1

Final Heads: All Revenue and Capital Heads are called Final Heads.  Suspense Heads are not come under Final Heads.  

Suspense Heads:  

What is Suspense?

• Suspense  Heads  are operated  in accounts for facilitating  proper accountal of various  transactions, which cannot  be booked to  final  heads  immediately,  for want of  allocation or other reasons .  

 

• Transactions in suspense Heads are held temporarily pending clearance by payment or recovery or adjustment to the Heads of accounts.  

 

• Examples are MAR, DP, Traffic, Labour, Deposit, Cheques & Bills, R etc