Finance Accounts and Capital & Revenue Accounts
·
Indian
Railways is a Departmental Commercial Organization. So
not only secure essential requirements of Commercial Accounts, but also
conforms to the Government Accounts. So it prepares Capital & Revenue
Accounts and Finance Accounts to comply the Commercial Accounts and Government
Accounts respectively
Commercial Accounts:
·
Also called as
Capital and Revenue Accounts.
·
Recorded in such a way;
1.
How its Capital has been utilised (Balance
Sheet)
2.
How it (IR) stands in relation to its Debtors
and Creditors (Balance Sheet)
3.
Whether it (IR) is gaining or losing (Profit
& Loss A/c)
4.
Whether the sources of its gains or losses
5.
Whether it is solvent or insolvent+
·
So, the Accounts of Railway presented in such a
form as to facilitate a review of Railways as a Commercial undertaking.
·
To be included in Annual Report of IR
·
Sources :
1.
Revenue -
Revenue Allocation Register (RAR)
2.
Register of Earnings/Revenue
3.
Registers of Capital, DRF, DF etc - Works
·
Due date : 15th September or any other date
prescribed by the Railway Board from year to year
·
Financial Results cannot be gauged correctly
unless transactions recorded separately for Revenue and Capital
·
Loan A/c
- Assets created out of Capital only
·
Block A/c - Assets created out of all sources of
finance (Capital + DRF + DF + RRSK + RSF)
·
Consists of : Statements
of
1.
Authorised Capital
2.
Stock
3.
Loans, Debentures
4.
Receipts & Expenditure of Capital A/c
5.
Capital expenditure details for the year
6.
Capital A/c
7.
Revenue A/c
8.
Distribution of Earnings/Revenue and working
expenses of worked lines
9.
GWE - Gross Working Expenses - Summary
10.
GWE - Gross Working Expenses - Details
11.
Earnings/Revenue
12.
Outstanding Earnings/Revenue (Traffic Suspense
& DR)
13.
Net Revenue A/c
14.
DRF A/c
15.
Erstwhile Demands 1 & 2 / Major Head 3001
16.
Development Fund A/c (DF)
Government Accounts:
Government Accounts are
kept in 3 Parts - Flow Chart
Government Accounts
·
Also known as Finance A/cs
·
Duly classified as per prescribed rules of
Government
·
Object: Systematic record of all Receipts &
Expenditure classified under certain appropriated headings.
·
Railway Fund:
1.
Though the Railway transactions form the part of
Consolidated Fund, Contingency Fund & Public Account, they are accounted in
the pro forma "Railway Fund"
2.
In the books of CAS - Central Accounting
Section, RBI/Nagpur
·
Extra Railway Transactions: Railway Audit expenditure - booked in Railway Accounts for convenience
purpose, though they do not pertain to Railway Revenue & 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 structure aligns with erstwhile
Demand No. 03 - for Sub Major Head 01 -" General Superintendence &
Services"
·
Monthly Account Current /Annual Account Current
- complies the Finance A/cs
·
Railway Accounts further classified into 1.
Commercial Lines 2. Strategic Lines
·
Strategic lines exists in 4 Zonal Railways. They are NR, NFR, NWR & WR
·
Recoveries (of overpayments in last year) -
shown as Earnings/Revenue in Current year.
·
However, recoveries due to difference in
attendance of previous year - should be shown as reduction in the expenditure
only in current year.
·
Credits up to Rs. 10 thousands pertaining to
closed works - to be post as Earnings/Revenue
·
Para 217A - Allocation of Receipts & Expenditure
A.
The
primary responsibility for the allocation of all receipts and payments rests with the concerned departmental officers.
B.
Each bill or voucher received from them should
show the correct allocation of the receipt/expenditure in the fullest detail.
C. The Accounts Department is responsible for seeing, to the
extent it is possible for them to do so, that the allocation shown on the
initial document is not prima facie incorrect.
·
Correct
classification should be followed in recording the expenditure in accounts
irrespective of whether provision in the budget has been made under correct
budget head.
·
In order, however, to avoid undue variation
between the budget and accounts figures, changed in accounting classification
will not ordinarily be introduced during the course of the year.
·
In the case of works, the allocation of which
has to be changed during the course of a year from one head of expenditure to
another, classification of expenditure in that year should follow the original
allocation. The change should be given effect to from the beginning of the next
financial year only after making necessary provision in the Budget at the
Budget stage or at the Revised Estimate stage to cover not only the estimated
expenditure for the budget year but also write back of the expenditure incurred
from the commencement of the work to the end of the previous year.
Link Heads between Govt Accounts & Commercial
Accounts
|
|
Demands Payable
|
Labour
|
Traffic
|
Bills Recoverable
|
|
Revenue /
Capital
|
Revenue
|
Capital
|
Revenue
|
Revenue
|
|
Always having
|
Credit balance
|
Credit balance
|
Debit balance
|
Debit balance
|
|
Operated on
|
Expenditure
side
|
Expenditure
side
|
Earnings side
|
Earnings side
|
****
