Provident Fund Accounts Chapter IX

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Questions and Answers

What types of accounts are mentioned in the content regarding the Employees Provident Fund?

Only contributory accounts

All accounts are non-contributory

Both contributory and non-contributory accounts (correct)

Only investment accounts

Where can one find the rules for the State Railway Provident Funds?

In the Indian Railway Establishment Code (correct)

In the Employee Guidelines Manual

In a public library

In the Railway Record Office

Which document maintains the Fund Accounts of the Statutory Audit staff?

The Internal Audit Division

The Finance Minister's Report

Local Railway Office

Accountant General, Central Revenues (correct)

Which of the following is NOT part of the credits to the head 'State Railway Provident Fund Contributory/Non-Contributory'?

Withdrawal penalties Signup and view all the answers

What should be kept as a ledger account for each subscriber?

A ledger account of transactions Signup and view all the answers

How often should the totals of the check sheet be reconciled with the amounts credited and debited to the fund?

Monthly Signup and view all the answers

Which major head includes transactions from the State Railway Provident Fund?

805-State Provident Funds Signup and view all the answers

What should happen when subscriptions to the Provident Fund are recovered in excess of the admissible amounts?

The excess amounts should be refunded and appropriate adjustments made. Signup and view all the answers

What method is recommended for calculating interest on excess contributions?

Using simple interest at prescribed rates for half the overpayment period. Signup and view all the answers

Under what condition can a forfeited Government Contribution be re-credited to a subscriber's Provident Fund account?

If the break in service is condoned and the subscriber is permitted to refund the money. Signup and view all the answers

Who is competent to sanction the payment of interest on excess credits?

The Financial Advisor and Chief Accounts Officer (F.A.& C.A.O.). Signup and view all the answers

What action should be taken when irregularities in excess credits are identified?

Write back the excess amounts and interest immediately. Signup and view all the answers

What is one of the purposes of the provident Fund journals?

To accompany regular pay bills Signup and view all the answers

Which of the following is NOT a type of debit listed in the content?

Bank fees Signup and view all the answers

Who is responsible for attesting the opening balances carried forward from the previous year's ledger?

Section officer (Accounts) or sub-head in charge Signup and view all the answers

What method should be used to post recoveries for subscriptions or refunds remitted in cash from outside India?

Using remittance notes or miscellaneous schedules Signup and view all the answers

How should debit entries in ledger accounts be verified?

By the Accounts officer-in-charge at the time of passing the pay order Signup and view all the answers

For what reason should account books be organized into sections or compartments?

To localize and reconcile posting errors Signup and view all the answers

What percentage of opening balance entries should be checked by the Accounts officer-in-charge?

As fixed by the Financial Adviser and Chief Accounts Officer Signup and view all the answers

Which section should prepare journals when dealing with cash remittances from outside India?

Provident Fund Section Signup and view all the answers

What should be checked when verifying the correctness of recoveries in pay bills?

Details in the provident Fund Journal against recoveries in pay bills Signup and view all the answers

What is the basis for calculating interest on monthly deposits in a subscriber's S.R.P.F. account?

Average monthly balance for the year Signup and view all the answers

What components are included in the balance at the beginning of the financial year for a subscriber's account?

Subscriber's own subscriptions, including previous interest Signup and view all the answers

How is interest calculated for the Government contribution side of the S.R.P.F. account?

Using a separate minimum balance calculation for Government contributions Signup and view all the answers

What is the applicable interest rate for S.R.P.F. balances up to Rs. 25,000?

7.5% per annum Signup and view all the answers

How often should the monthly average balance be calculated?

At the end of the financial year or earlier if necessary Signup and view all the answers

What is the interest rate for amounts exceeding Rs. 25,000 in the S.R.P.F. account?

7% per annum Signup and view all the answers

How should interest figures be managed in the ledger accounts?

Posted separately for subscription and Government contribution Signup and view all the answers

What should happen to the totals of interest columns in the Check Sheet?

They should be transferred to the General Books Signup and view all the answers

Which of the following statements is true regarding voluntary refunds and withdrawals?

They must be included in working out the minimum balance Signup and view all the answers

What is the first step in determining interest on a subscriber’s account?

Calculating the beginning balance at the financial year start Signup and view all the answers

What form should be used for showing deductions made from pay bills for the State Railway Provident Fund?

Form A. 908 Signup and view all the answers

How should the ledger account for each individual subscriber be formatted?

Printed on both sides of the paper Signup and view all the answers

What information is NOT included in the index register according to the provided structure?

Subscriber's salary Signup and view all the answers

What should be done with the old declaration form when a revised declaration is received?

It should be cancelled and returned Signup and view all the answers

What is the purpose of maintaining a numerical index to the ledger?

To facilitate reference to subscriber's accounts Signup and view all the answers

How should additional columns in the numerical index register be utilized?

To show reference to memorandums and dates of declaration receipt Signup and view all the answers

What should be the first column of details maintained in the index register?

Month account opened Signup and view all the answers

In the case of non-contributory S.R.P.F. Accounts, what is noted about government contributions?

The columns will not be printed Signup and view all the answers

What aspect of the provident fund rules is explicitly mentioned regarding subscriber declarations?

They require a specific prescribed form Signup and view all the answers

What are the two formats mentioned for maintaining the index registers?

Numerical and alphabetical Signup and view all the answers

What is required to ensure the correctness of recoveries in pay bills?

Internal checks by designated sections Signup and view all the answers

Which document should accompany the regular pay bills to show recoveries?

Provident Fund journals Signup and view all the answers

What is the purpose of organizing account books into sections or compartments?

To streamline the posting and reconcile errors Signup and view all the answers

Who must attest the debit entries made in the ledger accounts?

The Accounts officer-in-charge Signup and view all the answers

How should postings necessitated by adjustments be made?

Directly from adjustment vouchers Signup and view all the answers

What process should be employed for verifying the opening balances at the start of the financial year?

Section officer approval or recognition of the balances Signup and view all the answers

What additional documentation is required for cash remittances from outside India?

Cash remittance notes or schedules Signup and view all the answers

Which details must be recorded for new members in the index register and ledger?

Member's full name, designation, staff number, and surname first Signup and view all the answers

What should be done if a Muslim member requests no interest on their deposit?

The words 'No interest' should be noted in both the index register and the ledger. Signup and view all the answers

What practice should be followed concerning account numbers allocated to members?

Each member should retain a unique consecutive number and closed accounts' numbers cannot be reused. Signup and view all the answers

What is essential regarding the spelling of subscribers' names in accounts?

The spelling should follow the subscriber's own way and must be consistent across all documents. Signup and view all the answers

How should block numbers for different departments be organized?

Separate blocks should be assigned with consecutive numbering within each block. Signup and view all the answers

What format should be used to maintain check sheets?

Two distinct parts: one for deposits and the other for withdrawals and other contributions. Signup and view all the answers

What requirement is specified for opening accounts jointly?

Accounts should never be opened in the name of two or more persons jointly. Signup and view all the answers

What is the primary purpose of the index register in account management?

To ensure that all subscriber names and details are accurately accounted for. Signup and view all the answers

What should be done with the declaration form upon receiving a revised version?

The old declaration form must remain available for reference until further notice. Signup and view all the answers

What was the opening balance at the start of April 1976?

Rs. 24020 Signup and view all the answers

What was the average monthly balance calculated over the period mentioned?

Rs. 24520 Signup and view all the answers

In which month was the total contribution to the Provident Fund the highest, including both deposits and interest?

November Signup and view all the answers

What was the interest amount calculated on the average monthly balance of Rs. 24520 at a rate of 27.5%?

Rs. 1839 Signup and view all the answers

What was the minimum balance maintained for the Provident Fund from June through August?

Rs. 24000 Signup and view all the answers

Which month showed a deposit that resulted in a minimum balance of Rs. 24600 after considering previous entries?

October Signup and view all the answers

By what date was the total accumulated (divided by 12) balance of the average monthly calculated?

February 1977 Signup and view all the answers

What is required for the transfer of a member's Provident Fund Account when they are moved to a different office?

Permission from the head of the new office and documentation from the previous office Signup and view all the answers

When will interest be credited to the member's Provident Fund Account after a transfer?

At the end of the financial year Signup and view all the answers

What minimum balance was noted for the months following January 1977?

Rs. 24600 Signup and view all the answers

How much was the monthly deposit in each of the months recorded?

Rs. 100 Signup and view all the answers

What should accompany the advice of transfer when processing a Provident Fund Account transfer?

A ledger account showing details of deposits and withdrawals Signup and view all the answers

What happens to the Provident Fund Accounts during temporary transfers that exceed one year?

They may be transferred to the receiving office's Accounts Officer. Signup and view all the answers

What was the final total balance before dividing it by 12, as mentioned in the content?

Rs. 294240 Signup and view all the answers

Which action must be taken to ensure timely transfer of Provident Fund Accounts?

Monthly revisions of the Register of Last Pay Certificate Signup and view all the answers

What should be reconciled with the totals in register A. 913 during the checking process?

The check sheet totals in A. 9120 Signup and view all the answers

What is the main requirement when calculating the total government contribution allowed at the end of the half-year?

It should be adjusted by deducting non-eligible items from the total subscriptions Signup and view all the answers

At what frequency should interest be credited to the respective accounts?

Annually at the close of each financial year Signup and view all the answers

How is the interest on contributions calculated?

Using the minimum balance and applying a monthly interest rate Signup and view all the answers

What should the ground totals of debits and credits in check sheets agree with?

Total balances in the General Books under the state railway provident fund Signup and view all the answers

What impact does making inter-compartmental transfers have on reconciliation?

It requires adjustment in both the check sheets and register Signup and view all the answers

What is the significance of posting the column for Government Contribution in the check sheet?

To ensure accuracy in member account balances Signup and view all the answers

What action should be taken at the end of the year for the column showing interest?

Totaled up to calculate the annual interest to be credited Signup and view all the answers

What role does the General Books play in the reconciliation process?

It should align with the total debits and credits in the checking sheets Signup and view all the answers

What should be credited to the 'State Railway Provident Fund/Contributory' at the end of the half-year?

The net allowable government contribution after adjustments Signup and view all the answers

Study Notes

Chapter IX: Provident Fund Accounts

Provident fund accounts are maintained by the Accounts Officer, responsible for internal checks on transactions
Internal checks ensure adherence to rules for subscriptions, withdrawals, and payments
Railway provident funds are categorized under major head 805
Funds include civil-general, state railway, transferred railway personnel, and other miscellaneous provident funds
Funds are maintained in accordance with specific provident fund rules for correct record keeping

A. Introductory

Responsibility for internal checks and account maintenance for state provident funds rests on the Accounts Officer
Personnel of railway subscribers are accountable for these transactions
Different types of funds are dealt with, including contributory and non-contributory
Rules associated with each fund type must be followed
The Accounts Officer ensures proper internal control over all transactions related to provident funds

902. Head of Account

Transactions for State Railway Provident Funds are under C-Railways, 805-State Provident Funds, and I-Small Savings Provident Funds
An individual ledger account is maintained for each subscriber

903. Outline of Accounting Procedure

All transactions affecting the "State Provident Fund" ledger account details are recorded in subscriber's ledger accounts
Check sheets reconcile entries
Monthly reconciliation confirms accuracy between ledger accounts and general books
Ledgers and check sheets are vital tools for tracking and monitoring fund transactions

904 & 905. Accounting Procedure (Debits and Credits)

Pay bills (pay sheets for workshops) track recoveries for subscriptions and refunds for temporary withdrawals
Detailed statements (provident fund journals) are created, reconciled with pay bills, and forwarded for ledger posting
Cash remittances and external recoveries are documented
Credits for government contributions and interest are posted in specified processes
Procedures ensure accuracy and accountability for all entries in the provident fund accounts

907. Account Books

Ledger accounts, check sheets, and provident fund journals are organized into compartments/sections
Categorization by departments, districts, or categories facilitates error localization
Organized record-keeping facilitates accurate analysis and reconciliation of provident fund data

908/909. Forms (Index Registers)

Numerical and alphabetical indexes are maintained for ledger entries
Index registers record account opening/closing dates, subscriber names, designations, and office/department details
Indexes improve efficiency and accuracy in account referencing

910. Index Registers (continued)

Additional columns to numerical index registers include memorandum references and declaration receipt dates
This data aids in tracing records and verifying transactions.

911. Opening of New Accounts

The full name, designation, and station should be entered in the index register and ledger, with a consistent spelling format
Staff and ticket numbers are recorded, if available, to minimize errors in posting.
Separate number blocks are assigned to departments.
Procedures ensure clarity and avoid confusion

912. Check Sheets

Check Sheets include deposits of subscriptions and regular half-yearly bonuses, and withdrawals/deposits of non-regular bonuses, including government contributions
This structured approach ensures a comprehensive account of all transactions

913. Register of Debits and Credits

Documents related to the State Railway Provident Fund (Contributory/non-contributory) are given serial numbers before being logged in the ledgers
Organization streamlines the process of tracking and recording transactions

914. Register of Unposted Items

The register should be used to document unposted transactions in a specific section
Finding and recording the details is essential to ensure completeness of records
All efforts are made for error-free ledger recording

915. Register of Unposted Ledger Accounts

After all compartment/section-related monthly journal entries are accounted for, unposted ledger entries should be recorded.
This clarifies all account and transactions details

916. Reconciliation with General Books

Check sheets are used to record the opening/closing balances, total deposits/withdrawals, and interest in each account
Reconciliation ensures agreement with general books and ledger accounts for each compartment/section
Reconciliation checks the accuracy and completeness of all figures

917. Government Contribution

Government contributions are credited to accounts once the half-yearly reconciliation is complete
The total contribution should match the total subscriptions for the half-year, minus any amounts not eligible for this contribution
This process ensures all governmental due contributions are recorded accurately.

918. Interest

Monthly interest is calculated based on monthly average balances
Calculation should be done at the appropriate rate, considering the first Rs. 25,000 and higher sums separately
Interest calculations ensure accuracy and calculation of accurate interest rates

919. Crediting Subscriptions

Important points to remember about recording contributions, governmental contributions, and interest in ledger accounts
Entries should be credited on the first of the calendar month if the payroll period for wages and staff is not in sync.
This clarity supports consistency and standardization

920. Points, Govt Cont., etc.

Specific points for crediting subscriptions, government contributions, and interest based on salary payment methods, etc.
Refunds should be processed on a case-by-case basis if a contribution is too high
This clarifies when to process special cases

921. Annual Closing and Reconciliation

Accounts for the State Railway Provident Fund are annually reconciled with general books to ensure accuracy
Certification from the Accounts Officer is required to validate balance reconciliation with general books
This approach improves accountability and prevents any loss of funds

922 Reconciliation (with General Books)

Ledger accounts are closed for the year and reconciled after monthly entries are complete
All year-end totals are matched with general books
This final step is critical for the year end reconciliation process

923. Accounts Furnished to Each Member

Annual statements of accounts are prepared and distributed to each member
This ensures members have access to their account data

924. Transfers of Provident Fund Accounts

Transfers of provident fund accounts are processed for employees with no service interruption
Transfers are initiated by the accounts office and include account details & forms, copies of deposits & withdrawals, and any nomination forms
Necessary records are maintained for internal tracking
Transfers are managed systematically for accurate record-keeping.

925. Closed Accounts

Procedures for closing accounts upon a subscriber's death or resignation from service are outlined
Accounts close swiftly with no interruption, followed by precise notifications & payments
Procedures streamline the closing process with clear timelines and procedures

926. Closed Account Process

Closed accounts are transferred to a dedicated list, not affecting the ongoing year's records
All items pending from the last year are included
Any financial inconsistencies in closed accounts are handled before being transferred
This supports accuracy and prevents possible losses

927. Errors in Closed Accounts

If accounting discrepancies are identified, the Accounts Officer corrects them and credits the small balance amount within six months to avoid future issues
This approach ensures speedy and accurate resolution

928. Provident Fund Interest/Accumulations

Interest calculations are conducted and recorded to comply with legal obligations.
This ensures that all interest calculations are completed
This ensures accurate and compliant record keeping

929. Special Contribution to Provident Funds

Special contributions are documented and included in the relevant ledger records
Payments are recorded promptly for accountability

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Description

This quiz covers the fundamentals of provident fund accounts as outlined in Chapter IX. It explores responsibilities of the Accounts Officer, internal checks on transactions, and the different types of state railway provident funds. Additionally, it provides insights into proper adherence to rules for managing subscriptions, withdrawals, and payments.