Railway Accounts Department Examinations

Showing posts with label allocations. Show all posts
Showing posts with label allocations. Show all posts

Sunday, October 22, 2023

Allocations - New Primary Units

Railway Board introduced New Primary Units, modified existing Primary Units and deleted the existing Primary Units which are not required in Finance Code Volume II ( Revenue classification).  

                Please click the Board's letter here


                             New Primary Units

Tuesday, October 20, 2020

Miscellaneous Receipts on Capital side

 Miscellaneous Receipts on Capital side 

(as per Finance Code Volume II)


Detailed Head Allocations:


  • 1198 under Plan Head 1100 - New Lines

  • 1798 Under Plan Head 1700 - Computerization

  • 3368 under Plan Head 3300 - S&T Works

  • 6568 under Plan Head 6500 - Training/HRD



Consists of: 


  1. Earnings from an unopened line or a line partially opened for traffic and not made over to the open line administration.


  1. Sale proceeds of Tenders on the construction organisations, whether attached to Open Lines or not.


  1. Forfeited EMD


  1. Forfeited SD


  1. Penalties recovered from Contractors.


***


Friday, August 14, 2020

Finance Accounts and Capital & Revenue Accounts

 

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

 

****

Friday, July 17, 2020

Plan Heads in Works expenditure - Major Changes



A Simple Guide to Understand CapEx, OpEx and Their Usage

Major Changes in Plan Heads

 

of Capital Segment of Demand No. 83 (for 2020-21) -Ministry of Railways  (Erstwhile Demand No. 16)

 

 

·         Authority: RBA No. 77/2019  issued under  Letter No.2017/AC-II/3/2 dated 29.08.2019 – ACS No.143  Click here

 

 

·         The whole exercise is trimming the Number of Plan Heads duly merged PHs into the similar nature of PH and deleting the PHs which are not required in present circumstances.  Some PHs are renamed duly giving the effect of merger. Overall 7 Plan Heads are deleted (some are merged in other PHs)

 

 

·         Major Heads for Works expenditure are

 

ü  5002 – Capital outlay on Indian Railways – Commercial Lines

ü  5003 – Capital outlay on Indian Railways – Strategic Lines

 

·         Accounting Classification of Works expenditure   - 8 digit numerical code like follows.

 

1

2

3

4

5

6

7

8

Source of Finance

Plan Head (Minor Head)

Detailed Head

Primary Unit

 

 




 

·         Sources of Finance

 

Numerical Code

(First 2 digits in Classification)

Source of Finance

Remarks

20

Capital

21

DRF – Depreciation Reserve Fund

23, 33, 43 & 53

DF I, II, III & IV respectively

25

Capital Fund

26

RSF – Railway Safety Fund

27

SRSF – Special Railway Safety Fund

Not in operation.  It was ceased in the 2008 year.

28

Capital – Nirbhaya Fund

29

RRSK - Rashtriya Rail Sanrakshak Kosh

84

EBR – IF (Extra Budgetary Resources – Institutional Finance)

 

 

 

The following Sources of Finance are ceased

 

Numerical Code

Description

Remarks

22

OLWR – Open Line Works – Revenue

Click here for reasons

24

ACSPF – Accident Compensation, Safety & Passenger Amenities Fund

Accident compensation is transferred to erstwhile Demand No.12 & SMH 10 – Miscellaneous Working Expenses.  Safety is chargeable to DF – IV.  Passenger amenities chargeable to DF - I

 

Changes in Plan Heads (Latest as per ACS – 143)

 

Deleted Plan Heads

 

Plan Head No

Description

Remarks

12

Purchase of New Lines

Deleted

34

Taking over of Line Wire from P & T Dept

37

Traction Distribution Works

Merged into PH 3600

52

Amenities for Staff

Merged into PH 5100

62

Investments in Govt Commercial undertaking – Public undertaking

Merged into PH 6100

63

Investment in Non – Govt undertaking incl: JVs/SPVs

Merged into PH 6100

83

New Lines (Construction) Dividend free project

 

Note:  PH 13 – Restoration of dismantled lines – Deleted already.

 

Modified Plan Heads

 

Plan Head No

Previous Description

New Description

Remarks

11

New Lines (Construction)

New Lines

36

OEW – Other Electrical Works Excl: Traction Distribution Works

Electrical Works

Previous PH 3700 – Traction Distribution Works is merged into PH 3600

51

Staff Quarters

Staff Welfare

Previous PH 52 – Amenities for Staff is merged into PH 51

53

1. Passenger Amenities

2. Other Railway Users amenities

Passenger & Other Railway Users amenities

Not much change. Only two parts are combined as one part

61

Investment in Govt Commercial undertaking – Road services

Investment in PSU/JV/SPV etc ( Govt & Non Govt)

Previous PHs 62 & 63 are merged in PH 61

 

Existing Plan Heads (Total -27)

 

Plan Head No

Description

Remarks

11

New Lines

14

Gauge Conversion

15

Doubling

16

Traffic facilities

17

Computerisation

New one

18

Railway Research

New one 2009 year

21

Rolling Stock

22

Leased Assets – Payment of Capital component of Lease charges to IRFC etc

New one – 2016 year

29

Road Safety Works – Level Crossing

New one

30

Road Safety Works (ROB/RUB)

New one

31

Track Renewals

32

Bridge Works, Tunnel Works & Approaches

33

S & T Works

35

Electrification Projects

36

OEW – Other Electrical Works incl: TRD works

Ph 3700- Traction Distribution Works is merged into PH 36

41

M & P – Machinery & Plant

42

Workshops incl: Production Units

51

Staff Welfare

1. Previous name of PH 51 is Staff Quarters

2.PH 52- Amenities for staff is merged into PH 51

53

Passenger & Other Railway Users’ Amenitities

Not much change. Only two parts are combined as one part

61

Investment in PSU/JV/SPV etc ( Govt & Non Govt)

Previous PHs 62 - Investments in Govt Commercial undertaking – Public undertaking & 63- Investment in Non – Govt undertaking incl: JVs/SPVs are merged in PH 61

64

Other Specified Works

65

Training / HRD

New one – 2016 year

71

Stores Suspense

72

Manufacturing Suspense

73

Miscellaneous Advances

81

MTP – Metropolitan Transport Projects

82

Transfer to SRSF – Special Railway Safety Fund

On books only. But not in operation

 

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