Accounting Chapter XXIX: Transfer Transactions
81 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Who is permitted to sign Transfer Certificates when they are supported by bills or vouchers assigned by a Gazetted Officer?

  • Any clerk in the office
  • The Manager of the department
  • The Section Officer (correct)
  • Only a Gazetted Officer

What is the last date by which Transfer Certificates should be issued each month?

  • 5th of the following month
  • 10th of the following month
  • 15th of the following month
  • 12th of the following month (correct)

What should happen if the entire amount of a Transfer Certificate does not relate to the office it is issued to?

  • It should be returned unaccepted (correct)
  • It can be rewritten for clarification
  • It should be held for further review
  • It should be accepted partially

How many manuscript registers should be maintained to monitor Transfer Certificates?

<p>Two, one for outward and one for inward (B)</p> Signup and view all the answers

What is the implication if a Transfer Certificate is received after the 13th of the following month?

<p>It will be included in the next month's accounts (B)</p> Signup and view all the answers

What initials should be recorded for each clerk responsible for managing the Transfer Certificates?

<p>Initials of the clerk concerned (C)</p> Signup and view all the answers

If a Transfer Certificate is accepted but does not relate to the concerned office, how should it be processed?

<p>It must be returned unaccepted (C)</p> Signup and view all the answers

What materials are excluded from small tools and hand tools listings?

<p>Electric tools and machines (A)</p> Signup and view all the answers

Which of the following is included under the category of Electrical Fittings?

<p>Telegraph and telephone Equipment (D)</p> Signup and view all the answers

Which type of lighting is not included in the electrical category outlined?

<p>Domestic lighting (A)</p> Signup and view all the answers

What is the purpose of signal and interlocking material?

<p>To manage train movements safely (B)</p> Signup and view all the answers

Which of the following is categorized specifically under Rolling Stock?

<p>Steam locomotives (D)</p> Signup and view all the answers

What type of losses are included under the head of physical losses?

<p>Shortages of stores discovered during verification (D)</p> Signup and view all the answers

Which of the following should not be classified as 'Physical losses' due to its compensatory nature?

<p>Turn of scale (B)</p> Signup and view all the answers

What is the annual deadline for the Inspectors of Stores Accounts to submit the physical losses statement?

<p>April 30 (D)</p> Signup and view all the answers

Losses due to which of the following reasons are often attributed as physical losses by depots?

<p>Retail issues (C)</p> Signup and view all the answers

What must be done with losses for which the Stores Department is responsible?

<p>They are included in the Stock Adjustment Account (A)</p> Signup and view all the answers

Which of the following is NOT considered a factor leading to stock physical losses?

<p>Discounting prices (B)</p> Signup and view all the answers

Which document should be sent to the Controller of Stores for ensuring accounts are processed timely?

<p>Statement of original grant, final grant, and actual expenditure (C)</p> Signup and view all the answers

What is the consequence of classifying losses attributed solely to retail issues or leakages?

<p>They cannot be considered physical losses (D)</p> Signup and view all the answers

What action is required by Accounts Officers concerning losses attributed to other departments?

<p>They should be debited directly to the respective departments (D)</p> Signup and view all the answers

Which of the following statements is accurate concerning the overview of stock shortages?

<p>Only shortages found during stock verification are considered (D)</p> Signup and view all the answers

What must agree with the opening and closing balances in the Depot Group Ledger?

<p>The accounts of various account offices (C)</p> Signup and view all the answers

Which option describes a transaction that would increase the debit side of the account?

<p>Transfers from other depots (B), Purchases through the Director (C)</p> Signup and view all the answers

What should accompany the accounts when submitted to the Chief Accounts Officer?

<p>An attached schedule of transactions (D)</p> Signup and view all the answers

Which of the following items would likely be found in the credit section of the account?

<p>Issues to workshops (B)</p> Signup and view all the answers

What is NOT a source of receipts during the month?

<p>Credits from returned items (C)</p> Signup and view all the answers

Which statement is TRUE regarding the processes of work and checks in preparing accounts?

<p>They must be strictly observed. (C)</p> Signup and view all the answers

Which of the following would NOT be categorized under the debit section?

<p>Sales of purchased articles (D)</p> Signup and view all the answers

What is the purpose of the stock adjustment account?

<p>To reconcile discrepancies in stock levels (A)</p> Signup and view all the answers

What happens if the processes of work and checks are not observed?

<p>There could be a risk of inaccuracies in the accounts (A)</p> Signup and view all the answers

What is the deadline for submitting the Annual Statement of Expenditure on Stores to the Railway Board?

<p>May 25th of the year following the one to which the statement relates (D)</p> Signup and view all the answers

Which column in the statement represents the value of stores imported directly?

<p>Column A (B)</p> Signup and view all the answers

In the statement, what does column C represent?

<p>Stores of Indian manufacture or of indigenous origin (B)</p> Signup and view all the answers

What is excluded from the value of steam locomotives in the statement?

<p>Electrical material (B)</p> Signup and view all the answers

Which of the following is included in the category of Railway Carriage?

<p>Electric Multiple Unit Stock body components (D)</p> Signup and view all the answers

What type of equipment does column Eb1 specifically exclude?

<p>Rolling Stock Electrical Traction Equipment (C)</p> Signup and view all the answers

Which of the following is NOT a category included in the statement?

<p>Heavy Machineries (B)</p> Signup and view all the answers

What is indicated by column D in the statement?

<p>Permanent way material and Track Tools (C)</p> Signup and view all the answers

What is specifically excluded from Diesel Locomotive parts according to the statement?

<p>Rolling Stock electrical traction equipment (B)</p> Signup and view all the answers

Which category includes India rubber fittings according to the statement?

<p>Trimmings for railway carriage interiors (A)</p> Signup and view all the answers

What is required to be maintained by the Book Section for detailed heads of account?

<p>A subsidiary register. (D)</p> Signup and view all the answers

What should happen if discrepancies are found during the reconciliation process?

<p>They must be reported to the gazetted officer within 10 days. (D)</p> Signup and view all the answers

What is the primary purpose of the monthly Capital Account Current submitted to the Railway Board?

<p>To show transactions related to capital expenditure. (C)</p> Signup and view all the answers

What information is included in the subsidiary register maintained by the Book Section?

<p>Opening balances, debits, and credits. (B)</p> Signup and view all the answers

What does the term 'decentralised stores accounting' imply in the context of submitting monthly statements?

<p>Stores accounting is managed separately at various locations. (D)</p> Signup and view all the answers

What is one of the adjustments made in the Stock Adjustment Account?

<p>Breakage or leakage (A)</p> Signup and view all the answers

Which of the following correctly describes how cash receipts are processed?

<p>Posted as a debit to 'Sales' and credit to 'Transfers Revenue' (D)</p> Signup and view all the answers

Which item should be included in the head of accounts under Revenue?

<p>Deposits-Miscellaneous (D)</p> Signup and view all the answers

What information is provided by the foils of Miscellaneous Cash Remittance Notes?

<p>Particulars of services or stores paid for (C)</p> Signup and view all the answers

How are payments made by the Railway for services or supplies accounted for?

<p>Posted directly from the Abstracts of Bills (C)</p> Signup and view all the answers

Which process is essential for ensuring timely processing of accounts?

<p>Submitting bills and vouchers without delay (A)</p> Signup and view all the answers

What is a characteristic of the revenue transactions recorded in the accounts?

<p>May include miscellaneous advances and deposits (B)</p> Signup and view all the answers

What consequence arises from not observing the processes of work and checks in account preparation?

<p>Potential financial discrepancies (A)</p> Signup and view all the answers

Which column represents the value of stores imported directly in the statement?

<p>Column C (D)</p> Signup and view all the answers

In cash sales or auction sales where the value is received in advance, how is the entry recorded in the accounts?

<p>Debit to 'Cash'. (A)</p> Signup and view all the answers

Which account is primarily involved with the demerit of stores received or issued from a depot?

<p>Stores (Capital 7160). (A)</p> Signup and view all the answers

What adjustment is primarily recorded in the Stock Adjustment Account?

<p>Contra adjustments to 'Stores'. (C)</p> Signup and view all the answers

Which of the following accounts would not typically be credited when receiving stores?

<p>Cash Account. (B)</p> Signup and view all the answers

How should items identifiable as chargeable to Works be processed?

<p>Credited to final heads of account. (B)</p> Signup and view all the answers

What type of transaction is recorded when stores are returned to depots?

<p>Debit to 'Stores'. (B)</p> Signup and view all the answers

Which of the following is NOT included in the transactions affecting the 'Stores' account?

<p>Cash sales where payment is received after sales. (C)</p> Signup and view all the answers

When a transfer of manufactured articles is recorded, what type of adjustment is typically used?

<p>Credit to 'Transfers Workshops'. (B)</p> Signup and view all the answers

What type of account primarily receives debits from the value of stores issued?

<p>Depot Transfer Account. (C)</p> Signup and view all the answers

Which of the following statements about credit and debit transactions in stores is true?

<p>Credits and debits can occur in any order. (D)</p> Signup and view all the answers

Which category includes stores that are specifically in transit but are not related to fuel?

<p>Stores-in-Transit-Depot-Transfer (D)</p> Signup and view all the answers

What does the account numbered 7184 represent?

<p>Difference arising from the stock revaluation due to market fluctuation of shop items (D)</p> Signup and view all the answers

Which account reflects the differences discovered by the stock verifier?

<p>Difference between ledger balances and ground balances (C)</p> Signup and view all the answers

What type of materials is excluded from the small tools and hand tools listings?

<p>Signal and interlocking materials (A)</p> Signup and view all the answers

What does the account number 7169 correspond to within Surplus Engineering Stores?

<p>Petty repair shop account (B)</p> Signup and view all the answers

Which option correctly identifies the nature of differences leading to physical losses categorized under account 7183?

<p>Revaluation of stocks due to market fluctuations (D)</p> Signup and view all the answers

Which option refers to stores that are categorized as surplus but awaiting sales?

<p>Surplus Engineering Stores awaiting sales (C)</p> Signup and view all the answers

What is the primary requirement for journal slips concerning Capital and Revenue accounts?

<p>They should be signed by a Gazetted Officer. (D)</p> Signup and view all the answers

What should the journal keeper focus on regarding entries related to Transfers?

<p>The alignment of debit and credit entries across accounts. (D)</p> Signup and view all the answers

Which of the following statements about consolidated journal entries is correct?

<p>They should disregard direct cash payments when preparing them. (A)</p> Signup and view all the answers

How should journal entries be filed after preparation?

<p>Capital and Revenue entries should be kept in separate files. (B)</p> Signup and view all the answers

What is the result of discrepancies in the amounts recorded for 'Transfers State Railway Revenue'?

<p>They must be corrected before the monthly reports are finalized. (A)</p> Signup and view all the answers

Which statement about the entries maintained in Stores Journals is true?

<p>They include both debit and credit totals for analysis. (D)</p> Signup and view all the answers

What role does the Stores Accounts Officer play in the journal entry process?

<p>They sign the journal entries before submission to the Book Section. (C)</p> Signup and view all the answers

What must agree between 'Transfers State Railway Capital' and 'Transfers State Railway Revenue' accounts?

<p>The amounts debited and credited. (A)</p> Signup and view all the answers

What actions are required when preparing journal entries from suspense registers?

<p>Journal slips must be filled out for both capital and revenue transactions. (A)</p> Signup and view all the answers

Flashcards

Transfer Certificate Signing Authority

Gazetted Officers sign Transfer Certificates unless supported by bills/vouchers assigned by a Gazetted Officer, in which case the Section Officer may sign.

Transfer Certificate Issuance Deadline

Transfer certificates must be issued no later than the 12th of the following month to prevent late entries in the next month's accounting.

Complete Transfer Certificate Acceptance

Transfer certificates should be fully accepted if they are for the intended office.

Unacceptable Transfer Certificate

If a transfer certificate amount doesn't align with the related office, it must be returned unaccepted by a Gazetted Officer.

Signup and view all the flashcards

Maintain Transfer Certificate Registers

Two registers (outward and inward) are required to track the status of transfer certificates for each division.

Signup and view all the flashcards

Outward Transfer Certificate Register

A register tracking transfer certificates sent out from a specific office

Signup and view all the flashcards

Inward Transfer Certificate Register

A register tracking transfer certificates received at a specific office

Signup and view all the flashcards

Depot

A location where supplies are stored and managed.

Signup and view all the flashcards

Transfer Certificate

A document that records the movement of materials or supplies between depots.

Signup and view all the flashcards

What is a Transfer Certificate used for?

Transfer Certificates track the movement of supplies between different depots.

Signup and view all the flashcards

Stock Adjustment Account

An account that records changes in the amount of stock (supplies) on hand.

Signup and view all the flashcards

Closing Balance

The amount of stock remaining at the end of a period.

Signup and view all the flashcards

Opening Balance

The amount of stock available at the beginning of a period.

Signup and view all the flashcards

Who are the key players managing this information?

Stores Accounts Officer and Chief Accounts Officer are responsible for managing stock and transfer certificate data.

Signup and view all the flashcards

What are the main sections of the Depot Stock Account?

It includes: Opening balance, Receipts from other locations, Purchases, Issues made during the month, Sales, Stocks adjustment, Closing balance, and other transactions.

Signup and view all the flashcards

Where is the Depot Stock Record kept?

The Depot Stock Account should be kept at the Depot and then forwarded to the Chief Accounts Officer.

Signup and view all the flashcards

Physical Losses

Shortages in inventory discovered during stock verification. They can arise from various factors like theft, damage, and mishandling, though not all deficiencies are considered losses.

Signup and view all the flashcards

Causes of Physical Losses

Common causes include retail issues (sales), leakage (spillage), and turn of scale (adjusting quantities based on measurement inconsistencies).

Signup and view all the flashcards

Losses Due to Price Fluctuations

Inventory value decreases due to changes in market prices. This occurs when the purchase price is higher than the current market price.

Signup and view all the flashcards

Losses Due to Obsolescence

Inventory becomes outdated or unusable due to changes in technology, demand, or regulations.

Signup and view all the flashcards

Losses Due to Deterioration

Inventory suffers damage or quality reduction due to aging, improper storage, or environmental factors.

Signup and view all the flashcards

Stock Verification

The process of physically counting and inspecting inventory to confirm its actual quantity and condition.

Signup and view all the flashcards

Annual Statement of Physical Losses

A report submitted by the Inspectors of Stores Accounts to the Stores Accounts Officer by the 30th of April, detailing all physical losses incurred during the year.

Signup and view all the flashcards

Stock Sheets

Documents used to record inventory details, including quantities, descriptions, and locations.

Signup and view all the flashcards

Stores Accounts Officer

The person responsible for managing and overseeing the accounting for all inventory and related transactions.

Signup and view all the flashcards

Annual Statement of Expenditure on Stores

A document that summarizes the value of purchased stores during a year, submitted to the Railway Board by the 25th of May following the year.

Signup and view all the flashcards

Form No. S. 2943

The standardized template used for submitting the Annual Statement of Expenditure on Stores.

Signup and view all the flashcards

Imported stores

Stores purchased from outside of India.

Signup and view all the flashcards

Stores of Indian manufacture

Materials or products made within India.

Signup and view all the flashcards

Bridgework and its parts

Components used in bridge construction, including fittings and fasteners.

Signup and view all the flashcards

Engineering Plant and components

Machinery and equipment used for engineering tasks, including hand tools and power tools.

Signup and view all the flashcards

Workshop Machinery, Plant and equipment

Machines and tools specifically used in a workshop for manufacturing and repair.

Signup and view all the flashcards

Permanent way material

Materials used for constructing and maintaining the railway track.

Signup and view all the flashcards

Steam Locomotives

Locomotives powered by steam engines.

Signup and view all the flashcards

Electric Locomotives

Locomotives powered by electricity.

Signup and view all the flashcards

What are Transfer Transactions?

The process of moving materials or supplies from one depot to another, usually documented by Transfer Certificates.

Signup and view all the flashcards

What are the types of materials transferred?

Transfer transactions typically involve various materials commonly used in railway operations: building materials, water infrastructure, signaling and interlocking equipment, tools, electrical equipment, rolling stock (locomotives and wagons), and more.

Signup and view all the flashcards

Why are Transfer Certificates important?

Transfer Certificates serve as official records of material transfers, helping to track stock levels, ensure material accountability, and facilitate accurate financial reporting.

Signup and view all the flashcards

What are the key documents involved?

Transfer transactions utilize documents like Transfer Certificates, Stock Adjustment Accounts, and Depot Stock Accounts to keep a detailed record of materials and their movement.

Signup and view all the flashcards

Who manages Transfer Transactions?

Key roles in managing transfer transactions include the Stores Accounts Officer and the Chief Accounts Officer. These officers are responsible for maintaining accurate records and ensuring proper accounting for all materials.

Signup and view all the flashcards

What is a Transfer Transaction?

Moving materials or supplies from one depot to another, usually documented with a Transfer Certificate.

Signup and view all the flashcards

What is a Transfer Certificate?

A document that records the movement of materials or supplies between depots.

Signup and view all the flashcards

What are transfer certificates used for?

Transfer certificates are official records that track the movement of materials or supplies between depots. They help ensure material accountability and accurate financial reporting.

Signup and view all the flashcards

What are the key documents involved in transfer transactions?

Important documents include Transfer Certificates, Stock Adjustment Accounts, and Depot Stock Accounts. These help keep a detailed record of materials and their movement.

Signup and view all the flashcards

Depot Stock Account

A detailed record of all materials held at a depot. It includes information on opening balance, receipts, issues, sales, adjustments, and closing balance, providing a comprehensive view of the stock at the depot.

Signup and view all the flashcards

What is Revenue Abstract?

A summary of revenue generated from various sources, including miscellaneous advances, deposits, and transfers.

Signup and view all the flashcards

What is a Miscellaneous Advance?

An advance of funds for a specific purpose, typically given for temporary use and to be repaid later. It falls under revenue as it represents a source of income for the railway.

Signup and view all the flashcards

Journal Slips

Documents prepared at the end of the month to record debits and credits for various accounts related to stores.

Signup and view all the flashcards

Consolidated Journal Entry

A single entry that combines all the debits and credits from journal slips into a summarized form.

Signup and view all the flashcards

Capital Account

The account that tracks investments and long-term assets related to the railway.

Signup and view all the flashcards

Revenue Account

The account that tracks income and expenses generated from the railway's operations.

Signup and view all the flashcards

Transfers - Railway and Divisional

The movement of materials or equipment within the railway system.

Signup and view all the flashcards

Stores Journal

A detailed record of all transactions related to stores, including receipts, issues, and adjustments.

Signup and view all the flashcards

Gazetted Officer

An individual holding a government position with certain authorized signing rights.

Signup and view all the flashcards

Monthly Schedules

Documents that summarize the transfers of materials between different sections or branches.

Signup and view all the flashcards

Transfer Stores

The process of moving stores between different divisions, branches, and sections.

Signup and view all the flashcards

What's a 'Stores' account?

A financial account that tracks the value of materials received, issued, and sold by a railway.

Signup and view all the flashcards

Where does money go when stores are sold?

Cash received for direct sales goes to 'Cash'. Sales to other railways go to 'Transfer Railways' via Transfer Certificates or Exchange Accounts.

Signup and view all the flashcards

What are the key accounts involved in 'Stores' transactions?

'Stores' account interacts with several other heads, including 'Transfers - Workshops', 'Transfers - Divisional', 'Imprest Accounts', 'Depot Transfer Account', and 'Stock Adjustment Account'.

Signup and view all the flashcards

What does the 'Stock Adjustment Account' do?

This account records changes in the amount of stock (supplies) on hand. It's mainly adjusted against the 'Stores' account, but also used for revenue adjustments.

Signup and view all the flashcards

How is the 'Stores' account credited?

Credits to the 'Stores' account occur when materials are issued to other departments or transferred to other depots. This involves debiting accounts like 'Transfers - Workshops', 'Imprest Accounts', etc.

Signup and view all the flashcards

What are Imprest Accounts?

These accounts represent small sums of money given to specific individuals or departments for specific purposes, which are later reconciled with the main 'Stores' account.

Signup and view all the flashcards

How are debits made to the 'Stores' account?

Debits to the 'Stores' account occur when materials are received at the depot. This includes purchases, returns from other departments, and transfers from other depots.

Signup and view all the flashcards

What happens when a depot receives stores from other locations?

The 'Stores' account is debited, and the corresponding credit is recorded in the 'Transfers - Divisional' or 'Transfers - Workshops' account, depending on the source of the stores.

Signup and view all the flashcards

What are transactions affecting the 'Stores' account?

Transactions involving receiving, issuing, and returning materials are recorded in the 'Stores' account, and often involve other accounts like 'Transfers', 'Imprest Accounts', and 'Stock Adjustment Account'.

Signup and view all the flashcards

Subsidiary Register

A detailed record kept in the Stores Accounts Office to track balances for specific heads of account, ensuring reconciliation with the General Books.

Signup and view all the flashcards

Reconciliation

The process of comparing and verifying the balances recorded in the Subsidiary Register with the General Books, ensuring they match.

Signup and view all the flashcards

Decentralized Stores Accounting

A system where stores accounting is handled by individual offices at different locations rather than a single central office.

Signup and view all the flashcards

Statement of Stores Transactions

A monthly report submitted by decentralized offices to the General Office, summarizing the movement of stores (materials) within a depot.

Signup and view all the flashcards

Study Notes

Chapter XXIX: Transfer Transactions, Stores Journal, Final and Accounts

  • Heads of Accounts: "Capital" and "Revenue" accounts are used for transactions related to stores. The Stores Accounts Office manages these accounts.
  • Capital Accounts: Major head 67A (Commercial) and 67B (Strategic) concern State Railway construction. Minor heads 71 (Stores Suspense) and 73 (Miscellaneous advances) are also used.
  • Sub-heads for Purchases: Imported purchases (7110), indigenous purchases by Railways (including Railway Board) (7120), and purchases through centralized agencies like DGS&D (7130). Also included are sales figures for items other than fuel (7140), fuel sales (7150), and store accounts (7160, 7170, 7180, 7190).
  • Store Divisions: The "Stores" head is further divided into sub-heads, detailed heads, and sub-detailed heads. Examples include imported purchases (7110), purchases through agencies (7120), purchases by railways (7130), and sales (7140, 7150).
  • Detailed Heads: Sub-head 7110 includes examples such as direct purchases by Railways/Board (7111) and purchases through other bodies (7112).
  • Detailed Sub-Heads: Within these are sub-details like purchases of imported stores in India (7121).
  • Sales Details: Sub-head 7150 includes sales to railway employees, outside parties, and other railways. 7140 (other sales) include similar categories
  • Stores in Stock: Examples of the 7160 sub-head include stores in depots, stores in stock (fuel/coal/diesel), engineering stores, and surplus engineering stores.
  • Stores In Transit: 7170 includes specific details of stores transferred, such as those transferred between other branches (either within the same or between different railway stations or branches).
  • Stock Adjustment Accounts: 7180 comprises differences between ledger balances and actual physical balances. This section also includes differences due to fluctuating market values in purchased goods and losses due to sorting/damage or other factors.
  • Revenue Accounts: Details for revenue, working expenses, miscellaneous advances, deposits-miscellaneous, and transfers are included
  • Transfer Transactions: Detailed procedures for transactions involving cash receipts and payments are detailed, including which party is responsible for the particular transfer process and how those transactions should be handled.
  • Transfer Certificates: These records track transactions between different railway divisions or branches, and between the Railway and other government bodies (both foreign and local).
  • Journal Entries and Slips: Guidelines for preparing journal entries and slips related to various sub-heads are presented. These journal slips distinguish between Capital and Revenue entries, detailing which type of transaction corresponds to which account.
  • Annual Accounts: Annual reports are presented, covering both Capital and Revenue Accounts, and Finance Accounts.
  • Store Transaction Statements: Guidelines are provided for monthly summaries of all stores activities/transactions for depots.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Indian Railways Transfer Transactions PDF

Description

This quiz covers Chapter XXIX on Transfer Transactions, focusing on the management of Capital and Revenue accounts within the Stores Accounts Office. It explores the different heads, sub-heads for purchases, and the division of stores. Test your understanding of accounting principles related to railway transactions and store management.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser