Accounting Chapter XXIX: Transfer Transactions

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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?

Two, one for outward and one for inward Signup and view all the answers

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

It will be included in the next month's accounts Signup and view all the answers

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

Initials of the clerk concerned 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?

It must be returned unaccepted Signup and view all the answers

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

Electric tools and machines Signup and view all the answers

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

Telegraph and telephone Equipment Signup and view all the answers

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

Domestic lighting Signup and view all the answers

What is the purpose of signal and interlocking material?

To manage train movements safely Signup and view all the answers

Which of the following is categorized specifically under Rolling Stock?

Steam locomotives Signup and view all the answers

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

Shortages of stores discovered during verification Signup and view all the answers

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

Turn of scale Signup and view all the answers

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

April 30 Signup and view all the answers

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

Retail issues Signup and view all the answers

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

They are included in the Stock Adjustment Account Signup and view all the answers

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

Discounting prices Signup and view all the answers

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

Statement of original grant, final grant, and actual expenditure Signup and view all the answers

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

They cannot be considered physical losses Signup and view all the answers

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

They should be debited directly to the respective departments Signup and view all the answers

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

Only shortages found during stock verification are considered Signup and view all the answers

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

The accounts of various account offices Signup and view all the answers

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

Transfers from other depots Signup and view all the answers

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

An attached schedule of transactions Signup and view all the answers

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

Issues to workshops Signup and view all the answers

What is NOT a source of receipts during the month?

Credits from returned items Signup and view all the answers

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

They must be strictly observed. Signup and view all the answers

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

Sales of purchased articles Signup and view all the answers

What is the purpose of the stock adjustment account?

To reconcile discrepancies in stock levels Signup and view all the answers

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

There could be a risk of inaccuracies in the accounts Signup and view all the answers

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

May 25th of the year following the one to which the statement relates Signup and view all the answers

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

Column A Signup and view all the answers

In the statement, what does column C represent?

Stores of Indian manufacture or of indigenous origin Signup and view all the answers

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

Electrical material Signup and view all the answers

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

Electric Multiple Unit Stock body components Signup and view all the answers

What type of equipment does column Eb1 specifically exclude?

Rolling Stock Electrical Traction Equipment Signup and view all the answers

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

Heavy Machineries Signup and view all the answers

What is indicated by column D in the statement?

Permanent way material and Track Tools Signup and view all the answers

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

Rolling Stock electrical traction equipment Signup and view all the answers

Which category includes India rubber fittings according to the statement?

Trimmings for railway carriage interiors Signup and view all the answers

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

A subsidiary register. Signup and view all the answers

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

They must be reported to the gazetted officer within 10 days. Signup and view all the answers

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

To show transactions related to capital expenditure. Signup and view all the answers

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

Opening balances, debits, and credits. Signup and view all the answers

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

Stores accounting is managed separately at various locations. Signup and view all the answers

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

Breakage or leakage Signup and view all the answers

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

Posted as a debit to 'Sales' and credit to 'Transfers Revenue' Signup and view all the answers

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

Deposits-Miscellaneous Signup and view all the answers

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

Particulars of services or stores paid for Signup and view all the answers

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

Posted directly from the Abstracts of Bills Signup and view all the answers

Which process is essential for ensuring timely processing of accounts?

Submitting bills and vouchers without delay Signup and view all the answers

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

May include miscellaneous advances and deposits Signup and view all the answers

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

Potential financial discrepancies Signup and view all the answers

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

Column C 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?

Debit to 'Cash'. Signup and view all the answers

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

Stores (Capital 7160). Signup and view all the answers

What adjustment is primarily recorded in the Stock Adjustment Account?

Contra adjustments to 'Stores'. Signup and view all the answers

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

Cash Account. Signup and view all the answers

How should items identifiable as chargeable to Works be processed?

Credited to final heads of account. Signup and view all the answers

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

Debit to 'Stores'. Signup and view all the answers

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

Cash sales where payment is received after sales. Signup and view all the answers

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

Credit to 'Transfers Workshops'. Signup and view all the answers

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

Depot Transfer Account. Signup and view all the answers

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

Credits and debits can occur in any order. Signup and view all the answers

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

Stores-in-Transit-Depot-Transfer Signup and view all the answers

What does the account numbered 7184 represent?

Difference arising from the stock revaluation due to market fluctuation of shop items Signup and view all the answers

Which account reflects the differences discovered by the stock verifier?

Difference between ledger balances and ground balances Signup and view all the answers

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

Signal and interlocking materials Signup and view all the answers

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

Petty repair shop account Signup and view all the answers

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

Revaluation of stocks due to market fluctuations Signup and view all the answers

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

Surplus Engineering Stores awaiting sales Signup and view all the answers

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

They should be signed by a Gazetted Officer. Signup and view all the answers

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

The alignment of debit and credit entries across accounts. Signup and view all the answers

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

They should disregard direct cash payments when preparing them. Signup and view all the answers

How should journal entries be filed after preparation?

Capital and Revenue entries should be kept in separate files. Signup and view all the answers

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

They must be corrected before the monthly reports are finalized. Signup and view all the answers

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

They include both debit and credit totals for analysis. Signup and view all the answers

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

They sign the journal entries before submission to the Book Section. Signup and view all the answers

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

The amounts debited and credited. Signup and view all the answers

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

Journal slips must be filled out for both capital and revenue transactions. Signup and view all the answers

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.

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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.