Expenditure Classification in Indian Railways
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Questions and Answers

What is credited to the 'Workshop manufacture suspense' account under the head 'labour'?

  • Payments made for miscellaneous advances
  • Labour expenses directly related to manufacturing
  • Total wages and allowances of staff employed in the shop (correct)
  • Expenditure incurred in the manufacture of bricks and lime

What happens to the 'labour' account when the Labour Pay Sheets are passed in the Accounts Office for payment?

  • The amount is credited to ‘Transfers Revenue’
  • The amount is transferred to Miscellaneous Advances
  • The amount is debited to 'labour' and credited to ‘Transfers Revenue’ (correct)
  • The account balance is cleared entirely

Which account is debited with expenditure incurred in the manufacture of bricks and lime?

  • Workshop manufacture suspense
  • Manufacturing Suspense Accounts (correct)
  • Transfers Revenue
  • Miscellaneous Advances

Which of the following is NOT correctly associated with 'Miscellaneous Advances'?

<p>It should always show a known head of service. (A)</p> Signup and view all the answers

In the context of the Metropolitan Transport Project, what must be indicated by suffixing the full code?

<p>Suspense accounts including Manufacturing and Miscellaneous Advances (B)</p> Signup and view all the answers

What is included under Road Safety works?

<p>Bridge and Tunnel Works (A)</p> Signup and view all the answers

Which code corresponds to the Capital source of financing?

<p>20 (C)</p> Signup and view all the answers

Which of the following sources does NOT relate to the financing of projects?

<p>Manufacturing Suspense (C)</p> Signup and view all the answers

What does the code 82 refer to in the sources of financing?

<p>Metropolitan Transport Projects (A)</p> Signup and view all the answers

Which of the following is categorized as Miscellaneous Advances?

<p>Staff Welfare (B)</p> Signup and view all the answers

Which detailed head would likely include expenditures on infrastructure like bridges and buildings?

<p>Stations and Buildings (B)</p> Signup and view all the answers

What is the purpose of the Other Specified works category?

<p>To categorize miscellaneous non-standard projects (D)</p> Signup and view all the answers

What should be charged to work when an item of rolling stock is temporarily used for construction purposes?

<p>Cost of repairs executed during the period of construction (D)</p> Signup and view all the answers

What does account head 2900 cover?

<p>Expenses relating to level crossings for safety improvements (C)</p> Signup and view all the answers

Which account head is associated with the conversion of unmanned level crossings?

<p>2900 (B)</p> Signup and view all the answers

Where is the cost of repairs for rolling stock charged after construction is completed?

<p>To the estimates of the works on which they were used (C)</p> Signup and view all the answers

What is account head 3000 used for?

<p>Conversion expenses for level crossings into bridges (C)</p> Signup and view all the answers

What expenditures are debited to account head 7140?

<p>Costs associated with sales of stores sold (C)</p> Signup and view all the answers

Which account head includes costs for manufacturing and repair work in workshops?

<p>7120 (B)</p> Signup and view all the answers

What does account head 2182 include?

<p>Safety enhancement works for rail testing (C)</p> Signup and view all the answers

What does account head 3200 entail?

<p>Expenditure on tunnel works and approaches (C)</p> Signup and view all the answers

What is the purpose of the account labeled '6565 - General Charges on stores'?

<p>To track general costs associated with stores (D)</p> Signup and view all the answers

Which account specifically relates to purchases made from cottage and small scale industries?

<p>7122 Purchases from Cottage and small scale Industries (B)</p> Signup and view all the answers

What type of sales does account '7140 Sales other than fuel' denote?

<p>Sales of all items excluding fuel (B)</p> Signup and view all the answers

Which account would track losses related to both cash and stores?

<p>6566 - Loss of cash and stores (D)</p> Signup and view all the answers

What does account '7111 Direct purchases by Railways' represent?

<p>Direct purchases made by the Railways (A)</p> Signup and view all the answers

Which account would be used to track receipts from miscellaneous activities?

<p>6568 - Miscellaneous receipts (D)</p> Signup and view all the answers

What is the main focus of account '7100 Stores suspense'?

<p>To track unexplained or pending transactions related to stores (D)</p> Signup and view all the answers

Which of the following accounts includes sales to outside parties?

<p>7140 Sales other than fuel (C)</p> Signup and view all the answers

What is the primary purpose of account '7123 Purchases from Public sector Undertakings'?

<p>To document purchases made from public sector industries (D)</p> Signup and view all the answers

What defines a 'Major Bridge' in terms of waterway or clear opening?

<p>Total waterway of 18 lineal metres or a clear opening of 12 lineal metres or upwards. (C)</p> Signup and view all the answers

Under which detailed head would you categorize the cost of girders and their erection?

<p>1151 (D)</p> Signup and view all the answers

Which of the following is included under 'Masonry' as per the details provided?

<p>Excavation and well curbs. (D)</p> Signup and view all the answers

What does the term 'Miscellaneous' under detailed heads 1153 & 1156 refer to?

<p>Guide banks and other incidental work not included under Steelwork or Masonry. (A)</p> Signup and view all the answers

How are temporary offices for staff during construction to be estimated?

<p>Under general charges – Office expenses, unless special for a particular work. (C)</p> Signup and view all the answers

What is excluded from the cost categorization of 'Steel work'?

<p>Cost of well sinking. (D)</p> Signup and view all the answers

Which of the following is true regarding the purpose of 'Offices' detailed in section 1161?

<p>Temporary offices are not included under this head. (A)</p> Signup and view all the answers

What types of structures are included under the costs categorized for 'Stations, Sheds, etc.'?

<p>Booking offices, latrines, and running rooms. (A)</p> Signup and view all the answers

Which activities would be classified under 'Earthwork' related to bridge works?

<p>Diversion and temporary works. (D)</p> Signup and view all the answers

What does 'concreting of all sorts' under the detailed heads for 'Masonry' refer to?

<p>The use of concrete in all masonry-related tasks. (C)</p> Signup and view all the answers

What is the primary purpose of the 'Other Manufacture Suspense Accounts'?

<p>To account for manufacturing expenses related to specific materials (A)</p> Signup and view all the answers

What would happen to the 'Miscellaneous Advances' account if the head of service becomes known?

<p>The payment is debited to the respective known head (B)</p> Signup and view all the answers

What is the first module of the 8-digit numerical code in the accounting classification for works expenditure?

<p>Indicates the source of fund (B)</p> Signup and view all the answers

What is indicated by suffixing the full code to the plan head code 81 in the context of Metropolitan Transport Projects?

<p>Detailed classifications like stores suspense and manufacturing suspense (C)</p> Signup and view all the answers

Which Minor Head corresponds to the classification of expenses related to doubling railway lines?

<p>15 - Doubling (C)</p> Signup and view all the answers

Under which Major Head does the Capital Outlay on Indian Railways-Strategic lines fall?

<p>5003 - Capital Outlay on Indian Railways-Strategic lines (A)</p> Signup and view all the answers

Which of the following statements correctly explains the role of 'labour' in the workshop accounting?

<p>It acts as a temporary holding account for labor-related expenses (A)</p> Signup and view all the answers

What criteria must be met for an expenditure to be classified under 'Miscellaneous Advances'?

<p>It must be an irregular payment that cannot be adjusted yet (B)</p> Signup and view all the answers

What is the purpose of the classification under the Major Head '5002'?

<p>To categorize capital outlay on Indian Railways for commercial lines (B)</p> Signup and view all the answers

Which of the following Minor Heads represents expenditures for railway research?

<p>18 - Railway Research (A)</p> Signup and view all the answers

What does the last module of the 8-digit numerical code represent?

<p>The primary unit or object of expenditure (C)</p> Signup and view all the answers

Which of the following is NOT included in the classification of expenditure under the Major Head of Railway Capital?

<p>Debt servicing costs (D)</p> Signup and view all the answers

Which of the following best describes the scope of account head 3300?

<p>Expenses associated with railway signalling and telecommunication (B)</p> Signup and view all the answers

What is covered under account head 3312?

<p>Costs associated with the establishment of telecommunication infrastructure (B)</p> Signup and view all the answers

Which option accurately describes the types of expenses categorized under 3321?

<p>Costs for the installation of communication towers (B)</p> Signup and view all the answers

Which of the following is specifically mentioned as a focus of account 3333?

<p>Safety enhancement works for track circuits (C)</p> Signup and view all the answers

In which account head would expenses related to portable cabins likely be recorded?

<p>3326 - Portable Cabins (B)</p> Signup and view all the answers

Which of the following options is NOT included within account head 3311?

<p>Feasibility studies for railway expansions (D)</p> Signup and view all the answers

What type of work is primarily associated with account head 3200?

<p>Construction and refurbishment of bridges (D)</p> Signup and view all the answers

Which of the following best describes account head 3332?

<p>Costs incurred for train control equipment and signalling (D)</p> Signup and view all the answers

What is the primary focus of account head 3324?

<p>Development of line communication systems for rail networks (A)</p> Signup and view all the answers

Which code signifies the classification under Workshops including Production unit?

<p>4200 (D)</p> Signup and view all the answers

What does the subhead '6110 Roadways' signify in the context of investment?

<p>Investment in roadways infrastructure (C)</p> Signup and view all the answers

Which of the following options corresponds to the codified digits for 'Customer Amenities'?

<p>5300 (C)</p> Signup and view all the answers

What classification does the Nirbhaya Fund Projects fall under?

<p>6400 (D)</p> Signup and view all the answers

Which head includes general charges other than medical and sanitation?

<p>4115 (D)</p> Signup and view all the answers

What subhead classification is equivalent to 'Investment in PSU/JV/SPV'?

<p>6100 (B)</p> Signup and view all the answers

Which code should be reflected when financing projects under Other Projects?

<p>6400 (C)</p> Signup and view all the answers

Under which classification would Mechanical laundry fall?

<p>4113 (A)</p> Signup and view all the answers

Which of the following is true regarding the 'General charges Establishment'?

<p>It has the same sub and detailed classification as under 1100. (D)</p> Signup and view all the answers

Which of the following classifications is represented by the code 6400?

<p>Other Specified Works (B)</p> Signup and view all the answers

What type of expenses are categorized under 'Office Expenses' related to construction?

<p>Furniture needed in office establishments (D)</p> Signup and view all the answers

Which of the following items would NOT be charged to 'Plant Construction'?

<p>Cost of tools and small articles (A)</p> Signup and view all the answers

Which category would include fees for professional services not on the regular staff of the Railway?

<p>Payable allowances (C)</p> Signup and view all the answers

How should contributions to Provident Fund for permanent staff engaged in construction be categorized?

<p>Recorded under Payable allowances (D)</p> Signup and view all the answers

What happens to the full purchase price of heavy construction plant after completion?

<p>Credited with its depreciated value (A)</p> Signup and view all the answers

Which type of instruments would be included in the 'Instruments' category?

<p>Mathematical and surgical instruments (A)</p> Signup and view all the answers

What is the correct categorization for the wages of office servants employed for safety during construction?

<p>Charged to direct construction costs (D)</p> Signup and view all the answers

Which of the following best describes the treatment of perishable articles of tools and plants?

<p>Final charges to specific works with no adjustments needed (A)</p> Signup and view all the answers

How are office messengers’ wages accounted for under the given classification?

<p>Included in Payable allowances (A)</p> Signup and view all the answers

What differentiates the cost of plant required for a specific work from general plant construction costs?

<p>It is recorded under a different sub-head of account (A)</p> Signup and view all the answers

Flashcards

Road Safety Works

Projects related to improving road safety, including work at level crossings and overbridges/underbridges (ROB/RUB).

Track Renewals

Projects involving the replacement or repair of railway tracks.

Capital Financing Source Codes

Codes used to categorize the funding source for capital expenditures, e.g., Capital, DRF, RSF.

Capital Expenditures Details

Detailed breakdown of expenses on infrastructure assets, including preliminary costs, land, track construction, bridges, stations, and buildings.

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Electrification Projects

Projects related to converting railway lines to electric power.

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Staff Welfare

Expenses related to the well-being of railway employees.

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Investment in PSU/IV/SPV

Investment in Public Sector Undertakings, Infrastructure Vehicles and Special Purpose Vehicles. This is about investments into government and non-government organizations.

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Store Department Costs

Expenses related to managing and storing goods, supplies and materials within a company.

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Medical and Sanitation Costs

Expenditures associated with healthcare and cleanliness within a facility.

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General Charges (other than establishment)

All various miscellaneous expenses that are connected to a company which do not directly tie to establishing the company.

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Purchases of Imported Stores

Acquiring supplies/products from overseas.

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Indigenous Purchases

Purchasing from suppliers within one's own country.

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Purchases from other Government Departments

Acquiring goods or services from other government entities or departments.

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Sales to Other Railways

Goods or services given to other railway companies.

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Sales to Outside Parties

Goods or services sold to external clients or businesses.

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Sales Other Than Fuel

Revenue from selling non-fuel products or services.

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Major Bridges

Bridges with a waterway of 18 lineal meters or a clear opening of 12 lineal meters or more in any single span.

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Minor Bridges

All other bridge works that are not categorized as 'Major Bridges'.

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Steelwork (Bridge)

Cost of girders and their erection, including all necessary staging.

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Masonry (Bridge)

Excavation, well curbs, sinking, concreting, support pipes, pointing, and all permanent construction related to foundations.

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Miscellaneous (Bridge)

Guide banks, riverbank protection, and other incidental bridge works not covered under 'Steelwork' or 'Masonry'.

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Temporary Offices (Construction)

Offices built for workers during construction, not for permanent use.

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Permanent Offices

Buildings designed for lasting use, like a lasting office.

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Station Buildings (Railway)

Platforms, booking offices, waiting rooms, goods sheds, and other buildings serving passengers or goods.

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Office Expenses (Construction)

Costs associated with temporary construction office operations.

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Contingencies (Work)

Unforeseen costs in a construction project.

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Workshop Manufacture Suspense: Labour

An accounting head used to track wages and allowances for staff working in a workshop during a month.

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Transfers Revenue

An accounting head used to credit money transferred from a 'labour' account to Accounts Office for payment purposes.

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Other Manufacture Suspense Accounts

An accounting head used to track expenses incurred in manufacturing bricks and lime at various locations.

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Miscellaneous Advances

An accounting head used to track irregular payments or adjustments that can't be immediately assigned to a specific expense category.

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Metropolitan Transport Project Code Suffix

A specific code suffix added to the main project code (e.g., 81 for Metropolitan Transport projects) to identify specific expenditure categories, like 'Rolling Stock' or 'Inventory'.

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What are SPURT cars used for?

SPURT cars are used for Rail testing, which is a crucial part of ensuring the safety and functionality of railway infrastructure.

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When is rolling stock expenditure charged to works?

When rolling stock (like trains or locomotives) is temporarily used for construction purposes, the expenses related to temporary modifications or repairs are charged to the construction project, not the Open Line.

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What happens to rolling stock used in construction?

After construction is completed, the rolling stock used temporarily is repaired and transferred to the Open Line at its depreciated value.

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What are unmanned level crossings converted to?

Unmanned level crossings can be converted to manned level crossings, improving safety by having personnel control traffic flow.

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What does 'Road Safety Works' cover?

'Road Safety Works' encompass projects aimed at enhancing safety at crossings, including conversion of unmanned level crossings to manned ones.

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When is 'Road Over Bridges/Road Under Bridges' expenditure accounted for?

Expenditure for converting level crossings into road-over bridges or road-under bridges is recorded under 'Road Safety Works' when the conversion's a separate project.

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What does account head 3200 include?

Account head 3200 covers expenses related to building bridges, tunnels, and their approach sections up to 100 meters.

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What is credited to account 7120?

Account 7120, 'Purchases indigenous,' is credited with the value of stores received from purchases within India.

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What is debited to account 7140?

Account 7140, 'Sales,' records the value of stores sold and cleared through recoveries.

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What happens in account 7160?

Account 7160, 'Stores,' tracks the movement of stores received and issued by the Controller of Stores.

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What are the major heads for Railway Capital?

The major heads are "5002-Capital Outlay on Indian Railways-Commercial lines" and "5003-Capital Outlay on Indian Railways-Strategic lines."

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What are the Minor Heads for Railway Capital?

The Minor Heads are detailed categories within the Major Heads, such as "11-New lines", "14-Gauge conversion", "15-Doubling", "16-Traffic facilities", "17-Computerisation", "18-Railway Research", "21-Rolling Stock", "22-Leased Assets."

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What is the purpose of the 8-digit code for works expenditure?

The 8-digit code breaks down the expenditure into three parts: funding source, detailed head of classification (asset type), and object of expenditure.

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What are some examples of Minor Heads for works expenditure?

Examples include "New lines", "Gauge conversion", "Doubling", "Traffic facilities", "Computerisation", "Rolling Stock", and "Leased Assets."

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What does the first module of the 8-digit code indicate?

The first two digits of the code show the funding source, which could be Capital, Capital Fund, DRF, DF, RRSK, or DSF.

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What does the second module of the 8-digit code represent?

The second two digits represent the asset type, e.g., "11-New lines" or "21-Rolling Stock", providing a detailed breakdown of the expenditure.

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What does the last module of the 8-digit code signify?

The last two digits indicate the object of expenditure, or the purpose of the investment within the chosen asset category.

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What is the code for Signalling and Telecommunication works?

The code for Signalling and Telecommunication works is 3300. It includes expenses related to establishing and maintaining communication infrastructure for railway operations.

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What are 'Preliminary expenses' within the Signalling and Telecommunication works?

'Preliminary expenses' are initial costs incurred before actual construction begins. They include surveying the site, acquiring necessary equipment and setting up the project.

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What are 'Structural works' in Signalling and Telecommunication?

'Structural works' involve building physical infrastructure like microwave towers, telephone exchanges, buildings, and communication lines.

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What does the code 3321 cover?

Code 3321 covers the construction of microwave and UHF towers, along with buildings that support communication services.

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What is included in 'Plant & Equipment' in Signalling and Telecommunications?

'Plant & Equipment' covers the machinery, tools, and technologies used for signalling and telecommunication systems. This includes signalling equipment, train control systems, and safety devices.

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What falls under the code 3332?

Code 3332 covers 'Train control equipment', which includes signalling and interlocking equipment.

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What is 'Safety Enhancement Works'?

'Safety Enhancement Works' encompass projects aimed at improving track safety, such as installing track circuits, axle counters, and safety systems like AWS and TPWS.

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What is AWS?

AWS stands for Automatic Warning System. It's an alert system that warns train drivers of potential hazards ahead.

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What is TPWS?

TPWS stands for Train Protection Warning System. It's a more advanced safety system that automatically applies brakes to prevent accidents.

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What does "General Charges" mean in Railway Accounts?

General Charges in Railway Accounts refer to various miscellaneous expenses that are not directly related to establishment, medical, or sanitation costs. These expenses are essential for the overall operation of the railway system, including maintenance, utilities, and other operational costs.

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What is the significance of the 'codified digits' in Railway Accounts?

Codified digits represent specific categories of expenses. Using those digits, Railway Accounts can break down expenditure into detailed sub-heads and categories within different plan heads. This standardized coding system provides structure and consistency across different accounts.

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What does 'Investment in PSU/JV/SPV' mean?

This refers to investments made by the railways in Public Sector Undertakings (PSUs), Joint Ventures (JVs), or Special Purpose Vehicles (SPVs). These investments are crucial for expanding the railway network and infrastructure.

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What is the purpose of the Nirbhaya Fund?

The Nirbhaya Fund is specifically allocated towards projects aimed at improving women's safety in public spaces. The fund prioritizes projects such as security measures, lighting enhancements, and other initiatives to ensure a safer environment for women.

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What are 'Other Specified Works' in Railway Accounts?

Besides the Nirbhaya Fund Projects, this category includes various other projects undertaken by the railways. These projects contribute to improving the overall railway system, including infrastructure development and safety enhancements.

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What are 'Staff Welfare' expenses?

These expenses cover a wide range of benefits for railway employees to improve their well-being. This can include healthcare, housing, education, and other benefits to ensure a healthy and productive workforce.

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What are 'Passenger and Other Railway Users' Amenities?

These are services and facilities provided to passengers and other users of the railway system to improve their experience. They include amenities such as waiting areas, restrooms, and other services to make their journeys more comfortable.

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What is meant by 'Same sub head and detailed head classification'?

It means that the breakdown of categories and expenses within a particular plan head remains consistent across different areas of Railway Accounts. This standardization makes it easier to track and analyze expenditure across different departments.

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What are 'Purchases indigenous'?

These are purchases made from suppliers within India. This promotes domestic industries and supports the local economy.

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What is the difference between 'capital outlay' and 'revenue expenditure' in Railway Accounts?

'Capital outlay' refers to expenditures on creating new fixed assets, such as infrastructure, rolling stock, and buildings. 'Revenue expenditure' is for daily operations, such as maintenance, salaries, and fuel.

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Plant Construction

Account for depreciation of heavy construction equipment. The initial purchase price is recorded here, and then adjusted when equipment is sold or transferred to the open line.

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What does Plant Construction account for?

This account tracks the depreciation of heavy construction equipment used for building a railway line. It includes the initial purchase price and adjustments for equipment returned to stores, sold, or transferred to the open line.

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Instruments

This account covers the cost of perishable or small-value tools and instruments used during construction.

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What are some examples of instruments?

Instruments include mathematical tools, surgical equipment, and other small tools that are used up or have a short lifespan during construction.

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What is the key difference between office expenses on construction and open line?

Office expenses on construction are temporary and related to the building process, while office expenses on the open line are permanent and for the operational activities.

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What are the accounting implications for construction equipment?

The initial purchase price of heavy equipment is recorded in Plant Construction. When the equipment is sold or transferred to the open line, the depreciated value is credited to Plant Construction.

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What is the purpose of the 'Instruments' head?

This account keeps track of the cost of tools and instruments that are used up or have a short lifespan during construction, like measuring tools and medical supplies.

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What is the difference between perishable and non-perishable tools?

Perishable tools are used up quickly and need to be replaced frequently (like small tools), while non-perishable tools have a longer life span and can be reused for multiple projects (like heavy equipment).

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Why are contributions to Provident Fund, Bonus, and Gratuity for open line staff working on construction booked under 'Office Expenses'?

These contributions are considered general personnel costs associated with the office staff working on construction projects, even though the staff is assigned to the open line.

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Study Notes

Classification of Expenditure on Works, Machinery, and Rolling Stock

  • Purpose: To link with Central Government accounts, plan heads form minor heads under major heads 5002 and 5003 (Capital Outlay on Indian Railways - Commercial/Strategic Lines).
  • Revised Classification: Expenditure on works, regardless of funding source (Capital, Fund, DRF, DF, RSF, RRSK, and DSF), falls under major heads 5002/5003. This replaces the previous Demand No. 16 (Assets-Acquisition, Construction, and Replacement).
  • Accounting Classification: Expenditure is categorized using an 8-digit numerical code.
    • First 2 digits: Funding source (Capital, Capital Fund, DRF, DF, RRSK, or DSF).
    • Second 2 digits: Detailed head of classification (e.g., assets acquired, constructed, or replaced).
    • Last 2 digits: Primary unit/object of expenditure.

Minor Heads Classification

  • List of Minor Heads: A detailed list of minor heads (e.g., 1100-New Lines, 1120-Land, 1130- Structural Engineering Works-Formation, 1200- Restoration of dismantled lines, etc.) is presented in the document. Expenditure under each minor head is further divided into sub-heads and detailed heads.
  • Examples: Minor head 1100 (New Lines) includes subheads for preliminary expenses (1110), land (1120), and structural engineering works (1130).
  • Expenditure Allocation: Expenditure on track renewals is categorized under 1140 or similar codes, and details on the primary expenditure unit (e.g., wages, materials) will be added to the allocation code.
  • Expenditure on Assets: Sub and detailed heads give details of expenditure on assets like Preliminary Expenses, Land, Formation etc.
  • Expense Allocation Detail Examples: For Track Renewals, the allocation code will include 4 digits for the principal unit e.g., (3141-04) for wages and allowances.

Other Key Information

  • Source of Financing: A source code will be used to indicate the funding source (Capital, DRF, DF, etc.).
  • Expenditure Breakdown: Sub-heads and detailed heads break down expenditure on assets into specifics (Preliminary Expenses, Land, Formation, Permanent Way, Bridges, etc).
  • Budget Compilation: Plan Heads of Classification coincide with Demand for Grant Sub-heads, allowing for easy budget compilation. Detailed explanatory notes follow the classifications enabling accurate expenditure tracking.

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Finance Code Vol-2, Appendix-107-133 PDF

Description

This quiz focuses on the classification of expenditure on works, machinery, and rolling stock within the context of Indian Railways. It covers the revised classification for capital outlay and the accounting classifications including detailed heads and funding sources. Test your knowledge on the nuances of financial management in the railway sector.

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