Indian Railways Expenditure Allocation Quiz

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Questions and Answers

Which of the following works is aimed at improving the operational efficiency of railway operations?

Building new railway tracks in rural areas

Installation of additional water troughs (correct)

Increasing ticket prices for additional revenue

Discontinuation of certain passenger services

What is one example of a safety-related work that can be charged to the Development Fund?

Regrading permanent way for smoother operations

Improving lighting at stations

Expansion of office buildings

Provision of guard rails on major bridges (correct)

Converting dead-end sidings into through loops is primarily intended for what purpose?

To reduce the number of available train routes

To increase passenger ticket prices

To improve operational efficiency (correct)

To eliminate unnecessary train stops

Which option correctly describes the purpose of fitting automatic vacuum brake equipment to Metre Gauge wagons?

To enhance braking efficiency and safety Signup and view all the answers

Which of the following is NOT considered an improvement for operational efficiency?

Increasing the number of ticket checking staff Signup and view all the answers

What does the provision of anticreep anchors aim to achieve?

To stabilize railway tracks Signup and view all the answers

What is the objective of modernizing station buildings and shelters?

To provide a better passenger experience Signup and view all the answers

Which of the following works would be classified under 'Accommodation works'?

Providing rest houses for officers Signup and view all the answers

The addition of new approaches and circulating areas at stations primarily serves which purpose?

To facilitate better passenger movement Signup and view all the answers

When should the entire cost of replacement be charged to the Depreciation Reserve Fund?

When the replacement cost is less than the original cost. Signup and view all the answers

If the original cost of an asset is partially allocated to different funds, how should the cost of its replacement be handled?

It should be allocated to the Depreciation Reserve Fund. Signup and view all the answers

Which of the following categories allows for a debit to the Depreciation Reserve Fund for renewals?

Wholesale renewals of bridges and girders. Signup and view all the answers

What type of asset replacement costs must be charged to revenue instead of the Depreciation Reserve Fund?

Replacement of train lighting equipment. Signup and view all the answers

Which of the following is NOT a category under which renewal can be charged to the Depreciation Reserve Fund?

Renewals of floors and roofs of buildings. Signup and view all the answers

When are flood damage repairs considered a charge to revenue rather than the Depreciation Reserve Fund?

When the repairs include enhancements or betterments. Signup and view all the answers

What happens to the difference between the original cost and the replacement cost when the latter is charged to the Depreciation Reserve Fund?

It is credited to the Development Fund. Signup and view all the answers

What category of asset replacements is likely to be eligible for charging the depreciation reserve?

Strengthening of bridges. Signup and view all the answers

What is true about the treatment of repair costs related to accidents?

They must be evaluated based on betterment to decide fund allocation. Signup and view all the answers

Which of the following costs are included in the revenue bear expenses?

Current expenses of conducting railway business Signup and view all the answers

What is the monetary limit for replacing an item of medical equipment under revenue expenses?

Rs. 3 lakh Signup and view all the answers

What must be debited from the Depreciation Reserve Fund when rolling stock is transferred from an Indian Railway?

The original cost of the stock Signup and view all the answers

What is required when the cost of medical equipment exceeds Rs. 20,000?

Powers should not be re-delegated below the level of Heads of Departments Signup and view all the answers

According to the formula for depreciated value, what does 'a' represent?

The sum of the years the stock has run, with specific counting rules Signup and view all the answers

Which of the following costs is specifically mentioned as not chargeable to the Depreciation Reserve Fund?

Cost of replacements and renewals Signup and view all the answers

What is the minimum value a locomotive can have according to the provided rules?

25 percent of its original cost or present day replacement cost Signup and view all the answers

What specific cost is included under revenue regarding small items of equipment?

Cost of additional small items not exceeding prescribed monetary limit Signup and view all the answers

What happens to materials released from works charged to revenue?

They increase the Revenue account by their value Signup and view all the answers

If the original cost of an engine is not known separately, how should its cost be calculated?

As ¾ or ⅔ of the original cost of the whole locomotive Signup and view all the answers

When rolling stock is transferred from one Indian Railway to another, what is the process regarding original cost and depreciation?

Both original cost and depreciation are transferred without financial adjustments Signup and view all the answers

What aspect is emphasized for the procurement of medical equipment?

Justification for the purchase must be thoroughly examined Signup and view all the answers

What classification includes vehicles that have first class accommodation?

Coaching stock, upper classes Signup and view all the answers

Which type of vehicle does not provide any passenger accommodation?

Other coaching vehicles Signup and view all the answers

What should be done when new stock of a particular class replaces old stock of another class?

Refer to the Railway Board for approval Signup and view all the answers

Which type of wagon is classified under acid, oil, and petrol transport?

Tank wagons Signup and view all the answers

Which vehicle type includes tool vans and breakdown vans?

Service coaching vehicles Signup and view all the answers

What includes vehicles not offering passenger accommodations?

General service goods wagons Signup and view all the answers

Which classification covers vehicles such as fruit and poultry vans?

Other coaching vehicles Signup and view all the answers

Which type of wagons are specifically designed for mineral transport?

Mineral centre discharge hopper wagons Signup and view all the answers

Which classification includes vehicles such as cattle wagons and explosive wagons?

Other goods vehicles Signup and view all the answers

What is the classification for vans used to support cranes and weigh bridges?

Service wagons Signup and view all the answers

What happens to the depreciated value of an asset when it is transferred from Open Line to Construction?

It is credited to the Depreciation Reserve Fund. Signup and view all the answers

When are credits for replaced rolling stock afforded to the Depreciation Reserve Fund?

When the stock is broken up or disposed of. Signup and view all the answers

What is done with the present value material from an engine on the replaced stock list used in new stock construction?

It is credited to the Depreciation Reserve Fund. Signup and view all the answers

How is the price determined for second-hand rails supplied to new projects?

Using the formula involving the present price and scrap value. Signup and view all the answers

What should be charged to revenue when making alterations to replaced stock?

Additions and alterations required to suit retention. Signup and view all the answers

Which category of projects is NOT included under the Railway Safety Fund (RSF)?

High-speed Rail Projects Signup and view all the answers

What source provides funds to the Railway Safety Fund that is related to the cess on HSD oil and petrol?

General Exchequer Signup and view all the answers

Which of the following is classified as a component of Extra Budgetary Resources (EBR) aimed at railway projects?

Investments from Private Entities Signup and view all the answers

Which plan head is specifically aimed at enhancing safety through infrastructure improvements?

Gauge Conversion Signup and view all the answers

What is one potential purpose of the Extra Budgetary Resources (EBR) introduced in the Railway Budget 2015-16?

Funding Critical Revenue-Generating Projects Signup and view all the answers

What category does NOT directly receive an appropriation from the Railway Revenues after the allocation to the Development Fund?

Operating Expenses Signup and view all the answers

Which of the following categories would be charged to the Development Fund according to the given allocation guidelines?

Customer Amenities for Passengers Signup and view all the answers

What amount will be charged to the Depreciation Reserve Fund when renewing track with a different weight of rail and type of sleeper?

The full cost of replacement Signup and view all the answers

When second-hand rails are replaced by new ones, how is the entire cost treated?

It is charged to the Depreciation Reserve Fund. Signup and view all the answers

In the replacement of carriages, how is one bogie equated in terms of four-wheelers?

One bogie replaces two four-wheelers. Signup and view all the answers

What is the cost allocation method for new stock built on old underframes?

Only the depreciated value of the underframes. Signup and view all the answers

In the case of incidental works that maintain revenue, what percentage of the cost is charged to Revenue?

Entirely 100% to Revenue. Signup and view all the answers

What happens to the total cost when small fittings for locomotives are provided incidental to conversions?

Written off to Revenue. Signup and view all the answers

When replacing complete wheels and axles of carriages and wagons, how should the costs be allocated?

To the Depreciation Reserve Fund. Signup and view all the answers

When incidental works are debited partly to Capital and partly to the Depreciation Reserve Fund, how is the allocation determined?

In rateable proportions according to main work allocation. Signup and view all the answers

If an engine's motions or frames are altered, how is the total cost treated?

Debited to Revenue. Signup and view all the answers

Which of the following expenditures is considered chargeable to Revenue?

Expenditure for ceremonial occasions Signup and view all the answers

What portion of the cost for special posts utilized in works is charged to estimates?

No portion of the pay or allowances Signup and view all the answers

How is the cost of tools and plants allocated when a project is chargeable to multiple funds?

Based on the proportion of the project's total estimate Signup and view all the answers

Which of the following costs is specifically stated to be ignored when calculating proportions for tools and plants?

Net credit from released materials Signup and view all the answers

What is the treatment of incidental charges related to work conducted?

Included in the overall cost of the work Signup and view all the answers

What must be included in the cost of a post for accounting purposes?

Leave salary and contributions towards various funds Signup and view all the answers

Which fund is the cost of tools and plants charged to if employed solely in special works?

Capital Fund Signup and view all the answers

In the case of unmanaged vacancies due to special works, how should costs be allocated?

Not charged to estimates at all Signup and view all the answers

What aspect of operational costs must be considered when engaging special tools?

The proportion of costs attributed to different funds Signup and view all the answers

What type of expenses does a ceremonial occasion expenditure specifically address?

Opening events for projects Signup and view all the answers

What value is used as a basis for determining the sale price of overage or condemned locomotives?

Scrap value and virgin metal value combined Signup and view all the answers

Which component is NOT included when calculating the sale price of condemned wagons?

Cost of periodic maintenance performed Signup and view all the answers

How is the aggregate value for the sale price of a locomotive calculated?

Scrap value and virgin metal value raised by 25% Signup and view all the answers

What is added to the sale price of overaged locomotives in addition to their calculated value?

Proportionate cost of periodic overhaul prior to sale Signup and view all the answers

What percentage increase is applied to the calculated scrap value of wagons?

25% Signup and view all the answers

Which of the following factors does NOT influence the actual sale price of wagons?

Service life remaining for the wagon Signup and view all the answers

In calculating sale prices for condemned locomotives, what must the virgin metal value be assessed at?

Present day prices Signup and view all the answers

What aspect is specifically excluded from the formula applied to the sale price of condemned wagons?

Wagon body valuation after stripping Signup and view all the answers

What should the sale value for assets other than rolling stock be based on?

Market value mutually agreed upon Signup and view all the answers

What is the role of the controlled rates in the sale price calculation for wagons?

Guiding the valuation of the scrap and serviceable parts Signup and view all the answers

Study Notes

Allocation of Expenditure

Allocation identifies the source of funds for railway expenses.
Classification details the specific accounts under which expenses are recorded.
Expenditure is financed by Capital, Railway Funds, Extra Budgetary Resources (EBR), Institutional Finance (IF), EBR (IRFC-Bonds), and Extra Budgetary Resources (Partnership) and Current Revenue,
Expenditure is allocated to Capital, Depreciation Reserve Fund, Development Fund, EBR/IF, EBR(IRFC-Bonds), EBR/P, Railway safety Funds, other specific funds and Revenue.
Key accounts for Revenue and Capital expenditure are in Appendices I, II, III, and Appendix IV of the Indian Railway Code for Accounts Department.

Capital Expenditures

Costs of land are detailed in paragraphs 717, 718, and 719.
Initial costs of constructing new lines (including strategic lines) and new production units.
Costs of maintaining sections of lines not yet open.
Increased costs of any line additions or equipment, not for Development Fund.
Costs of additional machinery or equipment not for a specific project.
Costs of any tools or materials purchased specifically for supervising or constructing a project.

Capital Fund

Capital component of IRFC lease charges, if adequate funds aren't available under Capital Fund.
Cost of staff quarters.

Capital is Credited with

Cost of abandoning or disposing of assets (not land) without replacement.
When an asset is replaced, the adjustment made under these rules is reversed if the replacement cost is chargeable to the Depreciation Reserve Fund; otherwise, allocate according to normal allocation rules.
Original prices for sale of land held for capital purposes.
Difference between cost at debit of Capital for replaced assets (except those defined in item 5) and replacement cost, the latter being less than original cost, chargeable to Depreciation Reserve Fund.
Cost of labor initially for asset installation.
Original cost of replaced assets (specified in Note 2) chargeable to Depreciation Reserve Fund.
Amount from surplus after appropriations to Development Fund.

Revenue Expenditures

Includes expenses for maintenance and repairs after opening lines; paying employees, expenses for railway operation.
Contribution to Depreciation Reserve Fund for replacement costs.
Costs for replacements or renewals that are not under Depreciation Reserve or Development Funds.
Costs for laying components or parts (e.g., materials) that are later transferred for use on a new project.
Procurement costs for additional items for smaller expenditures.
Costs for procurement of maintenance equipment (no more than Rs. 3 lakhs).

Depreciation Reserve Fund

Expenditures for replacements and renewals include dismantling, handling, and shifting, and freight to stores.
Costs for improved ballast types.
Original costs of replaced assets (not land) chargeable to Open Line Works -Revenue expenditure.
Modernization costs for rolling stock.

Development Fund

Costs for new customer amenities.
Repair costs for existing projects that need operation improvements and efficiency.
Costs for tools or materials specifically acquired for supervision or construction of the projects.

Passenger and Railway User Amenities

Overhead or ground-level fixtures for passenger water use: including water purification plants, electric/other water coolers, and trolleys.
Seating accommodations (e.g., benches).

Staff Welfare Works

Hospitals, dispensaries, schools, and recreation facilities.
Sport fields, swimming pools, reading rooms, and welfare services for employees.
Maternity/child care centres.

Unremunerative Works

Work required to meet operational standards and requirements.

Safety Works

Costs for safety-related projects.

Inter-Railway Transfer of Assets

Transferring locomotives and rolling stock between Indian Railways and other railways.

Sale of Overaged/Condemned Locomotives/Wagons

Sale prices of overaged or condemned locomotives/wagons are determined through formulas.

Transfer of Assets

Transferring assets from "Open Line" to "Construction" is processed by crediting the Depreciation Reserve Fund, debiting Capital/(or Development Funds etc) and credit the depreciated value to the Construction Estimate (credit to the Depreciation Reserve Fund).

Replacement and Renewals

Costs for replacing or renewing equipment.

Additions to Rolling Stock

Costs for new rolling stock are charged to Capital, except where there has been a reduction in the authorized stock of that class of vehicles.

Spares

Spare parts for machinery, plant and equipment that are not complete units are called spares.
Costs for spare equipment will be charged to revenue.
Some exceptional items (e.g., spare boilers for locomotives up to 7% of total authorized stock) should be booked as capital expenditures.

Additions of Ballast

Costs for additions to ballast (e.g., when ballast depth is increased to maintain requisite depth) can be charged to Depreciation Reserve Fund.

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Description

Test your knowledge on the allocation of expenditure within the Indian Railways. This quiz covers aspects such as the sources of funds, classification of accounts, and key expenditures as outlined in the Indian Railway Code. Understand the nuances of capital and revenue expenditures in the railway sector.