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Questions and Answers
How should repayments made by governments for expenditures incurred by one government be treated?
How should repayments made by governments for expenditures incurred by one government be treated?
- As revenue for the repaying government
- As deduction from expenditure if accounts are open (correct)
- As an asset for future financial reporting
- As liabilities to be settled in the next financial year
What should happen to recoveries not made within the same financial year as the expenditure incurred?
What should happen to recoveries not made within the same financial year as the expenditure incurred?
- They should be categorized as liabilities
- They should be deducted from gross expenditure
- They should be ignored in financial reporting
- They should be treated as revenue (correct)
In what scenario can the entire recovery amount be treated as a reduction of expenditure?
In what scenario can the entire recovery amount be treated as a reduction of expenditure?
- When recovery is made in the same financial year
- When the expenditure was incurred over two financial years
- When the expenditure is over a predetermined threshold
- When recovery is based on the calendar year (correct)
What is the treatment of recoveries by a commercial department?
What is the treatment of recoveries by a commercial department?
Which type of recoveries are to be treated as deductions from expenditure?
Which type of recoveries are to be treated as deductions from expenditure?
When should recoveries made by departments of the same government be treated differently?
When should recoveries made by departments of the same government be treated differently?
What defines recoveries by a commercial department?
What defines recoveries by a commercial department?
What should be done if a commercial department acts as an agent for another department?
What should be done if a commercial department acts as an agent for another department?
What type of recoveries are considered revenue for the recovering government?
What type of recoveries are considered revenue for the recovering government?
What is the treatment for recoveries made on expenditures incurred during the previous financial year?
What is the treatment for recoveries made on expenditures incurred during the previous financial year?
What is defined as 'recovery' in the context of government accounts?
What is defined as 'recovery' in the context of government accounts?
How should recoveries from private persons or bodies generally be treated?
How should recoveries from private persons or bodies generally be treated?
Under what circumstance can recoveries be taken in reduction of expenditure?
Under what circumstance can recoveries be taken in reduction of expenditure?
What type of recoveries falls under the category requiring treatment as reduction of gross expenditure?
What type of recoveries falls under the category requiring treatment as reduction of gross expenditure?
What should be done with recoveries representing debits to another Government for sanctioned expenditures?
What should be done with recoveries representing debits to another Government for sanctioned expenditures?
Which of the following is NOT an exception for treating recoveries as deductions from expenditure?
Which of the following is NOT an exception for treating recoveries as deductions from expenditure?
If a service's entire cost is recovered from a private body, how is the net cost to the Government classified?
If a service's entire cost is recovered from a private body, how is the net cost to the Government classified?
What is the main intent behind regulating recoveries in government accounts?
What is the main intent behind regulating recoveries in government accounts?
Which of these is a common misconception about recoveries in government accounts?
Which of these is a common misconception about recoveries in government accounts?
How should recoveries from another department be treated if not made within the same year the expenditure was incurred?
How should recoveries from another department be treated if not made within the same year the expenditure was incurred?
When are receipts and recoveries on Capital Accounts considered reductions of expenditure?
When are receipts and recoveries on Capital Accounts considered reductions of expenditure?
Who decides the classification of a recovery in case of doubt or dispute?
Who decides the classification of a recovery in case of doubt or dispute?
Under what condition can recoveries be treated as deductions from expenditure?
Under what condition can recoveries be treated as deductions from expenditure?
What is the implication of the notes regarding the Civil Accounts Code?
What is the implication of the notes regarding the Civil Accounts Code?
Recoveries made from which account should normally be treated as revenue?
Recoveries made from which account should normally be treated as revenue?
Which entity's approval is required for decisions made by the Comptroller and Auditor General?
Which entity's approval is required for decisions made by the Comptroller and Auditor General?
What action should Railways take regarding doubts in classification?
What action should Railways take regarding doubts in classification?
What happens if recoveries on Capital Accounts do not follow applicable allocation rules?
What happens if recoveries on Capital Accounts do not follow applicable allocation rules?
What is the primary focus of the guidelines provided in the Chapter?
What is the primary focus of the guidelines provided in the Chapter?
What should recoveries made by a Commercial Department be treated as?
What should recoveries made by a Commercial Department be treated as?
Under what condition can recoveries made after the accounts of the expenditure year be treated as revenue?
Under what condition can recoveries made after the accounts of the expenditure year be treated as revenue?
If a recovery is made based on a calendar year rather than the financial year, how should it be treated?
If a recovery is made based on a calendar year rather than the financial year, how should it be treated?
What is the treatment for recoveries on account of pensions from other governments?
What is the treatment for recoveries on account of pensions from other governments?
How should recoveries between different departments of the same government typically be treated?
How should recoveries between different departments of the same government typically be treated?
What happens if a Commercial Department acts outside its essential purpose when recovering funds?
What happens if a Commercial Department acts outside its essential purpose when recovering funds?
What defines a recovery that should be credited as revenue for the recovering government?
What defines a recovery that should be credited as revenue for the recovering government?
For recoveries made by different governments where expenditure is not initially shared, how should repayments made while accounts are open be treated?
For recoveries made by different governments where expenditure is not initially shared, how should repayments made while accounts are open be treated?
How should recoveries made that represent debits to another government for sanctioned expenditures be classified?
How should recoveries made that represent debits to another government for sanctioned expenditures be classified?
Which of the following represents a common misconception about recoveries in government accounting?
Which of the following represents a common misconception about recoveries in government accounting?
What should be the general treatment of recoveries from private bodies in government accounts?
What should be the general treatment of recoveries from private bodies in government accounts?
Under which circumstance can recoveries from one government to another be treated as deductions from expenditure?
Under which circumstance can recoveries from one government to another be treated as deductions from expenditure?
When recoveries from another department are not made within the same financial year as the expenditure incurred, how should they be classified?
When recoveries from another department are not made within the same financial year as the expenditure incurred, how should they be classified?
In what scenario should recoveries be classified as reductions of gross expenditure?
In what scenario should recoveries be classified as reductions of gross expenditure?
What defines the term 'recovery' in the context of government accounts?
What defines the term 'recovery' in the context of government accounts?
What is the default treatment for receipts and recoveries on Capital Accounts that represent recoveries of expenditure previously debited to a Capital major head?
What is the default treatment for receipts and recoveries on Capital Accounts that represent recoveries of expenditure previously debited to a Capital major head?
Which type of recovery may allow for the entire cost incurred by a government agency to be treated as a reduction of expenditure?
Which type of recovery may allow for the entire cost incurred by a government agency to be treated as a reduction of expenditure?
In case of a classification dispute over a recovery, who has the authority to resolve the matter?
In case of a classification dispute over a recovery, who has the authority to resolve the matter?
Under what circumstance can recoveries on Capital Accounts be taken to revenue instead of being treated as reductions of expenditure?
Under what circumstance can recoveries on Capital Accounts be taken to revenue instead of being treated as reductions of expenditure?
What is the implication of classifying recoveries as deductions from expenditure?
What is the implication of classifying recoveries as deductions from expenditure?
What should be done with recoveries defined as expenditures that are not directly debited to government accounts?
What should be done with recoveries defined as expenditures that are not directly debited to government accounts?
What should the Railways do in the event of a doubt regarding the classification of a recovery?
What should the Railways do in the event of a doubt regarding the classification of a recovery?
When are recoveries from private bodies or individuals treated differently in government accounts?
When are recoveries from private bodies or individuals treated differently in government accounts?
What is stated about the provisions contained in the Appendix mentioned in the document?
What is stated about the provisions contained in the Appendix mentioned in the document?
What is a likely reason for recoveries being classified as revenue rather than deductions from expenditure?
What is a likely reason for recoveries being classified as revenue rather than deductions from expenditure?
If receipts and recoveries on Capital Accounts are not allocated under applicable rules, what is the expected outcome?
If receipts and recoveries on Capital Accounts are not allocated under applicable rules, what is the expected outcome?
How should recoveries that represent debits to another government for sanctioned expenditures be treated?
How should recoveries that represent debits to another government for sanctioned expenditures be treated?
How should recoveries be categorized when they involve various government departments making claims against each other?
How should recoveries be categorized when they involve various government departments making claims against each other?
What happens if a recovery does not comply with the determined standards for classification?
What happens if a recovery does not comply with the determined standards for classification?
What does the guideline stipulate regarding recoveries made by a commercial department?
What does the guideline stipulate regarding recoveries made by a commercial department?
What should recoveries made from another department be treated as if they are not effected within the year of expenditure?
What should recoveries made from another department be treated as if they are not effected within the year of expenditure?
What is the default treatment for receipts and recoveries on Capital Accounts regarding expenditures debited to a Capital major head?
What is the default treatment for receipts and recoveries on Capital Accounts regarding expenditures debited to a Capital major head?
Who decides whether a recovery is classifiable as revenue or deduction from expenditure in case of doubt?
Who decides whether a recovery is classifiable as revenue or deduction from expenditure in case of doubt?
What specific action should be taken by the Railways regarding doubts in classification?
What specific action should be taken by the Railways regarding doubts in classification?
What is the implication of the notes regarding the Civil Accounts Code present in the content?
What is the implication of the notes regarding the Civil Accounts Code present in the content?
Which of the following best describes recoveries that were previously debited to a Capital major head?
Which of the following best describes recoveries that were previously debited to a Capital major head?
What must occur for an expenditure recovery to be classified as a deduction from expenditure?
What must occur for an expenditure recovery to be classified as a deduction from expenditure?
What is generally the treatment for recoveries from private persons or bodies in government accounts?
What is generally the treatment for recoveries from private persons or bodies in government accounts?
In which scenario can recoveries be taken as a reduction of expenditure?
In which scenario can recoveries be taken as a reduction of expenditure?
What is the classification of recoveries that represent debits to another government for sanctioned expenditures?
What is the classification of recoveries that represent debits to another government for sanctioned expenditures?
What generally happens with recoveries of expenditures on works in progress?
What generally happens with recoveries of expenditures on works in progress?
Which of the following is an example of a recovery exception?
Which of the following is an example of a recovery exception?
What is the implication of treating recoveries from private bodies as revenue?
What is the implication of treating recoveries from private bodies as revenue?
What treatment is generally applied to recoveries made from different government bodies for expenditures incurred?
What treatment is generally applied to recoveries made from different government bodies for expenditures incurred?
When a government department receives recoveries classified as reductions of gross expenditure, which statement is true?
When a government department receives recoveries classified as reductions of gross expenditure, which statement is true?
Under what circumstance can recoveries from one government department to another be retained as revenue?
Under what circumstance can recoveries from one government department to another be retained as revenue?
What is generally the default treatment for recoveries made on Capital Accounts in government accounting?
What is generally the default treatment for recoveries made on Capital Accounts in government accounting?
How are repayments from other governments treated when made while accounts of the year are still open?
How are repayments from other governments treated when made while accounts of the year are still open?
What classification applies to recoveries made on behalf of other governments when the recovery functions as revenue?
What classification applies to recoveries made on behalf of other governments when the recovery functions as revenue?
Which type of recovery should be treated as revenue when it is made by a commercial department?
Which type of recovery should be treated as revenue when it is made by a commercial department?
What happens if recoveries are not made in the same financial year as the expenditure incurred?
What happens if recoveries are not made in the same financial year as the expenditure incurred?
In what case might recoveries on behalf of another government not be classified solely as deductions from expenditure?
In what case might recoveries on behalf of another government not be classified solely as deductions from expenditure?
How should recoveries from departments of the same government generally be treated?
How should recoveries from departments of the same government generally be treated?
If a commercial department acts as an agent to perform non-essential functions, how are recoveries treated?
If a commercial department acts as an agent to perform non-essential functions, how are recoveries treated?
Which option describes how recoveries made related to services should be accounted for?
Which option describes how recoveries made related to services should be accounted for?
When recoveries are made as a result of services rendered to another department, what should be done?
When recoveries are made as a result of services rendered to another department, what should be done?
Flashcards
Recovery
Recovery
Repayment of expenditure initially borne by a government department, recorded in its accounts, and received from another government department, outside body, or person.
Recoveries from Private Entities
Recoveries from Private Entities
Recoveries from private individuals or organizations (including local funds or foreign governments) are generally treated as revenue.
Agent Recoveries
Agent Recoveries
When a government acts as an agent for a private entity, and the entire cost of the service is recovered, the recoveries are treated as a reduction of expenditure.
Works in Progress Recoveries
Works in Progress Recoveries
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Intergovernmental Recoveries
Intergovernmental Recoveries
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Debitable Expenditure Recoveries
Debitable Expenditure Recoveries
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Accounts Code, Volume 1, 1953 Edition
Accounts Code, Volume 1, 1953 Edition
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Chapter 5, Accounts Code
Chapter 5, Accounts Code
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Recovery in Government Accounting
Recovery in Government Accounting
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Exhibition of Recoveries
Exhibition of Recoveries
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Partial Repayment of Joint Expenditure
Partial Repayment of Joint Expenditure
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Recoveries beyond Financial Year
Recoveries beyond Financial Year
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Calendar Year Recovery Exception
Calendar Year Recovery Exception
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Commuted Pension Recoveries
Commuted Pension Recoveries
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General Recoveries
General Recoveries
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Inter-Departmental Recoveries
Inter-Departmental Recoveries
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Commercial Department Recoveries
Commercial Department Recoveries
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Commercial Department Acting as Agent
Commercial Department Acting as Agent
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Post and Telegraphs Department Recoveries
Post and Telegraphs Department Recoveries
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Commercial Department acting as an agent
Commercial Department acting as an agent
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Recoveries from Another Department
Recoveries from Another Department
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Budget Provision for Recoveries
Budget Provision for Recoveries
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Capital Account Recoveries
Capital Account Recoveries
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Departmental Allocation Rules
Departmental Allocation Rules
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Disputes over Recovery Classification
Disputes over Recovery Classification
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Railway Board for Recovery Disputes
Railway Board for Recovery Disputes
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Civil Accounts Code Revision
Civil Accounts Code Revision
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Agent Recoveries for Private Entities
Agent Recoveries for Private Entities
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Recoveries for Works in Progress
Recoveries for Works in Progress
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What is a government recovery?
What is a government recovery?
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How are recoveries treated if not made in the same year as the expense?
How are recoveries treated if not made in the same year as the expense?
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How are receipts and recoveries on capital accounts handled?
How are receipts and recoveries on capital accounts handled?
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Who decides on the classification of recoveries in disputed cases?
Who decides on the classification of recoveries in disputed cases?
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Who resolves disputes regarding recovery classification for railways?
Who resolves disputes regarding recovery classification for railways?
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Repayments for Joint Projects
Repayments for Joint Projects
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Recoveries beyond the Financial Year
Recoveries beyond the Financial Year
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Commercial Department as Agent
Commercial Department as Agent
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What is a recovery?
What is a recovery?
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How are recoveries on capital account treated?
How are recoveries on capital account treated?
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How are inter-departmental recoveries treated?
How are inter-departmental recoveries treated?
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Study Notes
Rules Regulating Recoveries of Expenditure
- Recoveries are repayments of expenditure initially borne by one government entity and subsequently repaid by another, or an external party.
- Recoveries from private entities (including local bodies) and governments outside India are generally treated as revenue, not as deductions from expenditure.
- Exceptions exist: If a government acts as an agent for a private body and recovers the full service cost, the recovery reduces expenditure. Recoveries from works in progress and transactions from stock and suspense accounts are also deducted from gross expenditure.
- In cases where the recovery is based on a calendar year instead of a financial year, the entire amount can be treated as a reduction from expenditure, even if part of it relates to a previous financial year.
Recoveries Between Governments
- If a recovery represents a debit to another government for expenditure already sanctioned, it's considered a deduction from expenditure.
- In joint ventures, if expenditure isn't initially shared by multiple governments, repayments made while accounts are still open are deducted from expenditure.
Recoveries by One Department from Another
- Recoveries between departments of the same government are typically deductions from expenditure, excluding those from commercial departments.
- Commercial departments' recoveries are treated as receipts of the department, specifically in cases involving Postal, Telegraph, or Telephone services rendered to other departments. If a commercial department acts as an agent for another department without its core function, the recovery reduces expenditure.
- Recoveries not completed within the same fiscal year are treated as revenue.
- Recoveries from other governments, relating to commuted pension values should be deducted from expenditure.
- All other recoveries are treated as revenue.
Receipts and Recoveries on Capital Account
- Capital account receipts/recoveries of expenditure previously debited to a capital account should reduce expenditure. Exceptions exist when rules of allocation dictate otherwise.
Disputes and Settlements
- Disputes regarding revenue classification are decided by the Comptroller and Auditor General of India, with approval from the President.
- Specific guidelines are in place for railway disputes. The Civil Accounts Code is currently under revision, which may affect these rules, potentially altering provisions in the appendix.
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Description
This quiz explores the rules and regulations governing the recovery of expenditures between government entities. It covers key concepts such as the treatment of recoveries from private entities and how they impact government accounting. Test your knowledge on the intricacies of expenditure recoveries in government operations.
