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'?

It should always show a known head of service. Signup and view all the answers

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

Suspense accounts including Manufacturing and Miscellaneous Advances Signup and view all the answers

What is included under Road Safety works?

Bridge and Tunnel Works Signup and view all the answers

Which code corresponds to the Capital source of financing?

20 Signup and view all the answers

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

Manufacturing Suspense Signup and view all the answers

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

Metropolitan Transport Projects Signup and view all the answers

Which of the following is categorized as Miscellaneous Advances?

Staff Welfare Signup and view all the answers

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

Stations and Buildings Signup and view all the answers

What is the purpose of the Other Specified works category?

To categorize miscellaneous non-standard projects Signup and view all the answers

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

Cost of repairs executed during the period of construction Signup and view all the answers

What does account head 2900 cover?

Expenses relating to level crossings for safety improvements Signup and view all the answers

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

2900 Signup and view all the answers

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

To the estimates of the works on which they were used Signup and view all the answers

What is account head 3000 used for?

Conversion expenses for level crossings into bridges Signup and view all the answers

What expenditures are debited to account head 7140?

Costs associated with sales of stores sold Signup and view all the answers

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

7120 Signup and view all the answers

What does account head 2182 include?

Safety enhancement works for rail testing Signup and view all the answers

What does account head 3200 entail?

Expenditure on tunnel works and approaches Signup and view all the answers

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

To track general costs associated with stores Signup and view all the answers

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

7122 Purchases from Cottage and small scale Industries Signup and view all the answers

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

Sales of all items excluding fuel Signup and view all the answers

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

6566 - Loss of cash and stores Signup and view all the answers

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

Direct purchases made by the Railways Signup and view all the answers

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

6568 - Miscellaneous receipts Signup and view all the answers

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

To track unexplained or pending transactions related to stores Signup and view all the answers

Which of the following accounts includes sales to outside parties?

7140 Sales other than fuel Signup and view all the answers

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

To document purchases made from public sector industries Signup and view all the answers

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

Total waterway of 18 lineal metres or a clear opening of 12 lineal metres or upwards. Signup and view all the answers

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

1151 Signup and view all the answers

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

Excavation and well curbs. Signup and view all the answers

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

Guide banks and other incidental work not included under Steelwork or Masonry. Signup and view all the answers

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

Under general charges – Office expenses, unless special for a particular work. Signup and view all the answers

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

Cost of well sinking. Signup and view all the answers

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

Temporary offices are not included under this head. Signup and view all the answers

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

Booking offices, latrines, and running rooms. Signup and view all the answers

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

Diversion and temporary works. Signup and view all the answers

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

The use of concrete in all masonry-related tasks. Signup and view all the answers

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

To account for manufacturing expenses related to specific materials Signup and view all the answers

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

The payment is debited to the respective known head Signup and view all the answers

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

Indicates the source of fund 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?

Detailed classifications like stores suspense and manufacturing suspense Signup and view all the answers

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

15 - Doubling Signup and view all the answers

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

5003 - Capital Outlay on Indian Railways-Strategic lines Signup and view all the answers

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

It acts as a temporary holding account for labor-related expenses Signup and view all the answers

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

It must be an irregular payment that cannot be adjusted yet Signup and view all the answers

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

To categorize capital outlay on Indian Railways for commercial lines Signup and view all the answers

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

18 - Railway Research Signup and view all the answers

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

The primary unit or object of expenditure 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?

Debt servicing costs Signup and view all the answers

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

Expenses associated with railway signalling and telecommunication Signup and view all the answers

What is covered under account head 3312?

Costs associated with the establishment of telecommunication infrastructure Signup and view all the answers

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

Costs for the installation of communication towers Signup and view all the answers

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

Safety enhancement works for track circuits Signup and view all the answers

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

3326 - Portable Cabins Signup and view all the answers

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

Feasibility studies for railway expansions Signup and view all the answers

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

Construction and refurbishment of bridges Signup and view all the answers

Which of the following best describes account head 3332?

Costs incurred for train control equipment and signalling Signup and view all the answers

What is the primary focus of account head 3324?

Development of line communication systems for rail networks Signup and view all the answers

Which code signifies the classification under Workshops including Production unit?

4200 Signup and view all the answers

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

Investment in roadways infrastructure Signup and view all the answers

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

5300 Signup and view all the answers

What classification does the Nirbhaya Fund Projects fall under?

6400 Signup and view all the answers

Which head includes general charges other than medical and sanitation?

4115 Signup and view all the answers

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

6100 Signup and view all the answers

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

6400 Signup and view all the answers

Under which classification would Mechanical laundry fall?

4113 Signup and view all the answers

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

It has the same sub and detailed classification as under 1100. Signup and view all the answers

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

Other Specified Works Signup and view all the answers

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

Furniture needed in office establishments Signup and view all the answers

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

Cost of tools and small articles Signup and view all the answers

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

Payable allowances Signup and view all the answers

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

Recorded under Payable allowances Signup and view all the answers

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

Credited with its depreciated value Signup and view all the answers

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

Mathematical and surgical instruments Signup and view all the answers

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

Charged to direct construction costs Signup and view all the answers

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

Final charges to specific works with no adjustments needed Signup and view all the answers

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

Included in Payable allowances Signup and view all the answers

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

It is recorded under a different sub-head of account Signup and view all the answers

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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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.