Remittance Transactions - India
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Questions and Answers

What should be done with the balance under the head "Cheques and Bills" after six months if it remains uncashed?

  • It should be adjusted against working expenses only.
  • It should be transferred to a suspense account for future reference.
  • It should be credited to 'Abstract Z650 other unclassified. (correct)
  • It should be sent to the Railway Board for review.

    • How often should the amounts under the head "Remittance into Banks" and "Cheques and Bills" be reconciled?

  • Biannually.
  • Quarterly.
  • Annually.
  • Monthly. (correct)

    • Who will send the net figures of transactions for each railway at the beginning of every month?

  • The Railway Board.
  • The Financial Adviser and Chief Accounts Officer.
  • The Reserve Bank. (correct)
  • The State Accountants General.

    • What should be done with the net balance at the end of the year under suspense heads?

    <p>It should be carried forward to the next year.</p> Signup and view all the answers

    What is the purpose of maintaining a special register for uncashed cheques?

    <p>To facilitate disposal of requests for fresh cheques.</p> Signup and view all the answers

    What is required for transactions between the Railways and non-government bodies?

    <p>They must be settled by actual payment or recoveries.</p> Signup and view all the answers

    What is the role of the Accounts Officer in transaction settlements?

    <p>To classify transactions for bookkeeping purposes.</p> Signup and view all the answers

    What formal method is used for settlement through the Reserve Bank of India?

    <p>Advices of Clearance in Form A. 418</p> Signup and view all the answers

    How are debits and credits between two accounting units of the same railway handled?

    <p>They are balanced in the Central Books.</p> Signup and view all the answers

    What are the two remittance heads operated on for transfers within the Railway?

    <p>Transfers, Railway Revenue and Transfers, Railway Capital</p> Signup and view all the answers

    What should be referred to for exceptions involving transactions between the Railway Ministry and other bodies?

    <p>Specific guidelines outlined in para 402</p> Signup and view all the answers

    Which statement about transfers of capital items between accounts is correct?

    <p>Records are kept separately for capital and revenue transactions.</p> Signup and view all the answers

    What should the Accounts Office verify regarding the bills or vouchers received with Transfer Certificates?

    <p>They should confirm the debits or credits pertain to them.</p> Signup and view all the answers

    In what situation are Transfer Certificates accepted provisionally?

    <p>When countersignature from departmental officers is required.</p> Signup and view all the answers

    What happens to outstanding balances under the head 'Transfers Divisional' at the year's end?

    <p>They are reported to the Financial Adviser and retained.</p> Signup and view all the answers

    What should be done when there are unadjusted balances under 'Transfers Divisional'?

    <p>They should be reported with an explanation for non-clearance.</p> Signup and view all the answers

    How should transfers between Construction Divisions be adjusted?

    <p>Through the exchange of Transfer Certificates.</p> Signup and view all the answers

    What should the responding division do when it receives a Transfer Certificate?

    <p>Acknowledge the debit or credit in the same month’s accounts.</p> Signup and view all the answers

    What should happen if there are objections pertaining to items in the Transfer Certificate?

    <p>They can be reserved for future consideration.</p> Signup and view all the answers

    Transfer Certificates for transactions other than cash and stores should be primarily adjusted upon?

    <p>Receiving duly accepted and allocated vouchers.</p> Signup and view all the answers

    What document should be watched for the finalization of adjustments?

    <p>Register of Transfer Certificates (A-413).</p> Signup and view all the answers

    What must be checked immediately upon receipt of daily statements from banks?

    <p>Counterfoils of cheques and cash remittance notes</p> Signup and view all the answers

    What action should be taken if discrepancies are found in the statements?

    <p>Verify with the bank's record and report to the Central Accounts Section</p> Signup and view all the answers

    What is included in the daily duplicate copies sent by each treasury/bank?

    <p>Challans and paid instruments</p> Signup and view all the answers

    How should unpaid cheques and unaccounted cash remittance notes be organized?

    <p>In two separate manuscript registers</p> Signup and view all the answers

    What is the purpose of reconciling monthly statements from banks with the railway's records?

    <p>To ensure accuracy in financial reporting</p> Signup and view all the answers

    Who should discrepancies in reconciliation be reported to?

    <p>The Reserve Bank at Nagpur and the Accountant General</p> Signup and view all the answers

    What must be done with the statements received from the banks and treasuries?

    <p>File them carefully for future reference</p> Signup and view all the answers

    What is the consequence of misclassified items in the initial accounts of banks and treasuries?

    <p>Adjustment in the following month’s figures</p> Signup and view all the answers

    What should be included in the totals carried forward for the period?

    <p>Total figures from the preceding date</p> Signup and view all the answers

    What do the figures of the railway transactions account for?

    <p>Earnings, receipts, and deductions</p> Signup and view all the answers

    What should be debited to the head 'Deposit with Reserve Bank' at the end of the month?

    <p>Total amount of remittances acknowledged by the Banks and Treasuries</p> Signup and view all the answers

    What needs to occur after the reconciliation of figures at the end of the month?

    <p>The total amount of cheques drawn for the day should be credited</p> Signup and view all the answers

    The total amount of transactions booked under the head '890-Accounts with States etc.' must be verified with which document?

    <p>Register of Advices</p> Signup and view all the answers

    Transactions on behalf of a non-Railway Accounts Officer should be recorded under which head?

    <p>Accounts with States etc.</p> Signup and view all the answers

    What does the 'Deposits with Reserve Bank' head record?

    <p>Memo received from Reserve Bank and clearance of transactions</p> Signup and view all the answers

    Adjustments related to dividends and interest on railway reserves are addressed under which provision?

    <p>Paragraph 451 and 452</p> Signup and view all the answers

    When are deposits with the Reserve Bank operated?

    <p>When clearance memos are received from the Bank</p> Signup and view all the answers

    Which head should the amount of cheques drawn for the day be credited to?

    <p>Cheques and Bills</p> Signup and view all the answers

    What is adjusted against 'Deposit with Reserve Bank'?

    <p>Only cleared amounts of remittances and cheques</p> Signup and view all the answers

    What is the primary function of the 'Cheques and Bills' head?

    <p>To record all cheques drawn by Railway Accounts Officer</p> Signup and view all the answers

    What should happen to the balances under the head 'Reserve Bank Suspense' before the year's accounts are closed?

    <p>They must be cleared by adjusting to the final heads.</p> Signup and view all the answers

    The 'Remittance into Banks' head should be used when:

    <p>Debiting amounts that are transferred to banks as earnings.</p> Signup and view all the answers

    What is the correct procedure when there is a discrepancy in the verification of accounts received from other Accounts Officers?

    <p>Only items with full particulars should be journalized.</p> Signup and view all the answers

    Which is a consequence of not receiving acceptance of vouchers for items under 'Reserve Bank Suspense'?

    <p>They will automatically remain unadjusted for the year.</p> Signup and view all the answers

    What actions are required upon receiving the clearance memo from the Reserve Bank?

    <p>Debit or credit the 'Reserve Bank Suspense' accordingly.</p> Signup and view all the answers

    How should transactions between governmental organizations and the Railways be settled?

    <p>By actual payment or recoveries in cash/cheque</p> Signup and view all the answers

    What is the role of Transfer Certificates in intra-railway transactions?

    <p>They facilitate the transfer of amounts between railway accounts.</p> Signup and view all the answers

    In which scenario are transactions between two railway units set off against each other?

    <p>For all transactions except those explicitly stated as exceptions</p> Signup and view all the answers

    Which of the following remittance heads is used for transfers involving revenue account in capital account books?

    <p>Transfers, Railway Revenue</p> Signup and view all the answers

    What method should be used to settle transfers to capital accounts in revenue account books?

    <p>Use Transfers, Railway Capital head</p> Signup and view all the answers

    Which of the following statements correctly describes the handling of net amounts due between ministries or states?

    <p>They should be credited to the 'Railway Fund'.</p> Signup and view all the answers

    What must be done to reflect transfers between accounted capital and revenue item records?

    <p>Record these transfers in the designated accounts for accurate tracking.</p> Signup and view all the answers

    What is the purpose of maintaining a register of transfers in each Accounts Office?

    <p>To monitor disposal of Transfer Certificates and eliminate outstanding records</p> Signup and view all the answers

    Which item should be addressed through the Reserve Bank when misclassified?

    <p>Cash receipts and disbursements misclassified between railways</p> Signup and view all the answers

    What criteria should be used for adjusting uncashed cheques in the accounts?

    <p>Only those uncashed for over six months need adjustment</p> Signup and view all the answers

    What should be included in the register of transfers according to the guidelines?

    <p>Serial numbers, transaction details, and adjustments proposed</p> Signup and view all the answers

    What does the entry for 'Capital' and 'Revenue' represent in the register of transfers?

    <p>Separation of funds used for capital investments and operational revenues</p> Signup and view all the answers

    Which aspect requires a review to eliminate outstanding balances in accounting?

    <p>The head 'Transfers Divisional' at the year's end</p> Signup and view all the answers

    What is the correct approach to report discrepancies found during reconciliation?

    <p>Send a detailed report to the Railway board for further instructions</p> Signup and view all the answers

    What document is necessary for tracking Transfer Certificates issued and received?

    <p>A register following Form A-413</p> Signup and view all the answers

    Which statement best describes how Transfer Certificates should be accounted for?

    <p>They are primarily adjusted based on cash and stores transactions</p> Signup and view all the answers

    What action is taken regarding original vouchers when preparing provisional bills for March?

    <p>They are not necessary at this stage.</p> Signup and view all the answers

    Which register should record the advices issued to the Bank by the Railway Accounts Officer?

    <p>Register A-429</p> Signup and view all the answers

    What type of entries are accepted without needing original vouchers according to the instructions for debits?

    <p>Entries related to warrants and credit notes for March.</p> Signup and view all the answers

    When must the figures for the column 'Balance uncleared' be worked out?

    <p>At the end of the month.</p> Signup and view all the answers

    For what purpose is the Memo of clearance (A.420) received from the Reserve Bank used?

    <p>To record compliance with issued advices.</p> Signup and view all the answers

    What is the ultimate goal of preparing provisional bills based on station figures?

    <p>To facilitate timely adjustments in the coming financial year.</p> Signup and view all the answers

    When will the books of the Reserve Bank for the month of March close?

    <p>On March 25th.</p> Signup and view all the answers

    Which approach should be used for transactions adjustable with the Burma Government?

    <p>Effected through the Reserve Bank of India before specified deadlines.</p> Signup and view all the answers

    What type of entries are recorded in Register A-430?

    <p>Received advices from other Accounts Officers.</p> Signup and view all the answers

    What should be done with the balances calculated from the advices registers?

    <p>They must be confirmed against the ledger balances under Suspense heads.</p> Signup and view all the answers

    What must happen immediately upon receipt of advice A-418 by the Reserve Bank?

    <p>Adjustments in the accounts must be made and intimation issued.</p> Signup and view all the answers

    What should be checked for accuracy before sending a monthly outward account to the Accountant General?

    <p>The net debit or credit advised during the month.</p> Signup and view all the answers

    What is the purpose of Form A-422 in the remittance process?

    <p>To send advance schedules and connected vouchers.</p> Signup and view all the answers

    Which of the following describes the relationship of the monthly inward account to the accountability of the railway accounts?

    <p>It includes items initiated by other Accounts Officers related to the railways.</p> Signup and view all the answers

    After sending the advice for clearance to the Reserve Bank, what must also be done by the Railway Accounts Officer?

    <p>Send a copy of the advice to the Accounts Officer with a reference to A-422.</p> Signup and view all the answers

    Which document must be linked with the information received from the Bank regarding advices?

    <p>The Register of Advices issued to the Bank.</p> Signup and view all the answers

    What types of items should the outward account only cover?

    <p>Items initiated by the Railways.</p> Signup and view all the answers

    What must be noted in the register when an intimation is received from the Reserve Bank?

    <p>A note in the Register of Advices.</p> Signup and view all the answers

    Which type of accounts must be received from the Accountants General monthly?

    <p>Inward accounts detailing items initiated by the Railways.</p> Signup and view all the answers

    Study Notes

    Remittance Transactions - India

    • Introduction: Classification of transactions, including transfer, inter-railway, intra-railway, and pay & accounts transactions. Settlement procedures and methods are detailed in various sections. Specific types of transactions are handled through the Reserve Bank of India.

    • Classification of Transactions:

      • Remittance Transactions: Transactions between railways and other ministries or states settled through the Central Accounts Section of the Reserve Bank.
      • Pay & Accounts Transactions: Transactions between railways and Pay and Accounts Officers settled via cheques or government drafts.
      • Transfer Transactions: Transactions, technically referring to inter-railway transfers.
      • Cash Transactions
      • Store Transactions

    • Settlement of Transactions:

      • General rule: Transactions between different units within the same railway or between two railway systems are usually settled internally by book adjustment. Exceptions are settled through the Reserve Bank of India.
      • Specific transactions: Certain types of transactions (with Post and Telegraph, Defence, High Commissioner's offices, etc.) are settled through the Reserve Bank.

    • Intra-Railway Transfers: Transfers of capital/revenue items between internal railway accounts. Separate accounts are maintained for this purpose, with specific procedures for transfers, including use of Transfer Certificates for documentation Procedures: detailed procedures for handling transfers including Transfer Certificates.

    • Inter-Railway Transfers: Procedures mirror intra-railway transfers, but for transactions between different railway systems. Transactions should be adjusted in the receiving account in the same month the transaction is proposed in the Transfer Certificate.

    • Register of Transfers: Record keeping for transactions, using designated forms (e.g., Form A-413) to track inter-railway transfers.

    • Transfer Certificates: Used for documentation and transfer of funds between units/divisions. Documents are numbered serially each month. Missing certificates need to be promptly recovered.

    • Accounting Procedures: Detailed methods for recording transactions. Includes posting advices, statements from banks, reserve bank suspense accounts, and remittance into banks. Specific procedures for handling cash and store transactions exist. Registers include Advices Issued (A-429) and Advices received (A-430).

    • Inter-departmental Transaction: Deals with transactions like Income Tax, interest calculations, payments, and pension related data.

      • Detailed accounting procedures: Registers, postings, statements, reconciliation. Specific forms are used for transactions like those related to income tax, interest, dividends, and pension payments.

    • Settlement of Transactions: Procedures to settle various kinds of transactions. Pay and Accounts Offices, payments, related account adjustments, and procedures regarding transactions in March are all covered. Monthly lists of transfers (Form A-414) are checked for accuracy. Procedures for handling transfers in the last few months of fiscal year (Feb and March) are detailed.

    • Disposal of Monthly Lists of Transfers: Checking and correcting any discrepancies in monthly transfer lists, using Form A-414. Procedure for exchange of certificates is laid out.

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    Remittance Transactions—India PDF

    Description

    This quiz covers the classification and settlement procedures of remittance transactions in India, particularly within the railway system. It explores various types of transactions including transfer, intra-railway, and pay & accounts transactions, detailing how they are processed and settled. Test your understanding of these financial processes.

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