Road Maintenance Finance Quiz

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Questions and Answers

For charges not exceeding Rs.1000 related to road maintenance, which account should the amount be debited to?

Stock Account

Land, Kilns, etc.

Construction (correct)

Maintenance and repairs (correct)

When road maintenance charges exceed Rs.1000, what is the initial outlay debited to?

Original work concerned

Land, Kilns, etc. (correct)

Stock Account

Maintenance and repairs

If road construction charges exceed Rs.1000, what portion should be charged directly to the original work?

The entire cost

50% of the cost

No portion should be charged

A proper portion (correct)

What happens to the sub-head 'Land, Kilns, etc.' after the initial debits?

It is gradually relieved Signup and view all the answers

Are materials obtained specially for a work included under 'materials charged to works'?

No, they are considered a separate category Signup and view all the answers

What action does the SDO take with one copy of Form 13?

Retains it for posting the Tools and Plant Ledger Signup and view all the answers

Which of the following entries should be distinctly marked in Form 13?

Entries related to the receipt back of articles lent or sent out Signup and view all the answers

How many copies of the Indent for tools and plants should be prepared?

Triplicate Signup and view all the answers

Which document is necessary for issuing tools and plant?

Tools and Plant Indent, Form 14 Signup and view all the answers

Who is responsible for maintaining the Tools and Plant ledger in CPWA Form 15?

Store keeper Signup and view all the answers

Which of the following outlining the three parts tools and plants are maintained is incorrect?

Article under repair Signup and view all the answers

Where should the whole cost of carriage of all Government tents be debited?

Work contingency Signup and view all the answers

What must be obtained for cash sales of tools and plants?

Unstamped but dated acknowledgements Signup and view all the answers

Which type of payment to a contractor is a settlement of the account of work?

Payment for work duly measured Signup and view all the answers

What does 'intermediate payment' in a Public Work Division refer to?

On account payment Signup and view all the answers

Which of the following charges is included in the Issue Rate?

Handling charges Signup and view all the answers

How are storage charges added to the Issue Rate?

Any of the above Signup and view all the answers

What is the term for work executed by PWD funded by a loan from the Government?

Local Loan work Signup and view all the answers

Major work/estimate refers to an estimate that exceeds which amount?

Rs. 1,00,00,000/- Signup and view all the answers

Minor work/estimate is classified as an estimate that does not exceed which amount?

Rs. 5,00,000/- Signup and view all the answers

What does an on account payment mean in PWD?

Running account payment for measured work Signup and view all the answers

Which statement is incorrect regarding the classes of store?

Suspense head includes tools and machinery. Signup and view all the answers

Which of the following statements is correct about stock accounts?

A separate account should be kept in the Divisional Office for all stock. Signup and view all the answers

What is the purpose of the list of materials in stock?

To show the correct description and identifying numbers of materials. Signup and view all the answers

Who is responsible for filling in the issue rate in the Priced Vocabulary of Stores?

The Sub-Division. Signup and view all the answers

Is the statement true or false: Priced vocabularies of Stores should be maintained up-to-date?

True. Signup and view all the answers

Which statement about the sources of receipts of material in a PWD is incorrect?

Receipts can be obtained solely from the manufacturer's warehouse. Signup and view all the answers

What form should be used to record the detailed count or measurement of material received in CPWA?

Form 8. Signup and view all the answers

Where should the total number or quantity of materials received be entered?

The Priced Store Ledger. Signup and view all the answers

Which of the following is part of cash as defined in the provided guidelines?

Legal tender notes Signup and view all the answers

Which option represents items that are not part of cash?

Service Postage Stamp Signup and view all the answers

To whom should money be presented when paying into the accredited bank for the Public Works Division?

Memorandum or challan in CPWA Form 7 Signup and view all the answers

What is the maximum number of Letters of Credit (LoC) that can be issued in a year?

Four Signup and view all the answers

Which statement regarding the first (interim) LoC for the Cheque drawing & disbursing officer is true?

It is opened at the end of the current financial year Signup and view all the answers

Which of these items is considered a legal form of cash?

Revenue Stamp Signup and view all the answers

Which of the following items would require the use of a challan in successful bank transactions?

Paying money into the accredited bank Signup and view all the answers

Which sets of items could be considered parts of cash?

Legal tender coin, legal tender notes, and cheque/draft toward departmental dues Signup and view all the answers

What is the accounting procedure when a permanent imprest is drawn for the first time for a division?

Debit 8671 Credit 8782 Signup and view all the answers

How is the permanent cash imprest recouped?

Crediting 8671-departmental cash Signup and view all the answers

What happens on closure of the permanent cash imprest for a division?

Debit 8782 Credit 8672 Signup and view all the answers

Is it true that the account of imprest cash should be kept in a single copy by the holder of imprest in CPWA Form 2?

True Signup and view all the answers

Who is responsible for filling in the abstract of charges for recoupment of imprest on CPWA Form 2?

Both SDO and Divisional Officer as applicable Signup and view all the answers

What should a recouping officer do if an item in an imprest account is open to objection?

Not recoup in full and deduct the objectionable items Signup and view all the answers

In which form is a Temporary Advance accounted for?

Form 1A Signup and view all the answers

How should the accounting of a temporary advance be made?

Dr. 8782 Cr. 8671 Signup and view all the answers

Study Notes

Chapter 1: Definition

Charged Expenditure is defined as expenditure subject to Lok Sabha vote, charged on the Consolidated Fund, Contingency Fund, or Public Account.
Charged expenditure is mentioned in Article 112(4)
Contingency refers to all indirect work charges, incidental expenses of a work, and petty/incidental expenses that cannot be categorized under a distinct subhead.
Administrative approval in Public Work Department is the formal acceptance of a project by the Administrative or Finance department.
Advance payment in a Public Work Division is a payment made to a contractor for a work that has been measured or done.
Pick the best option for Advance Payment in a Public Work Division including advances to subordinate staff and contractor.
Assets in a Public Work Division refer to high-value machinery, equipment, and buildings.
Book transfer is the process of recording financial transactions without physical movement of cash or stock.
Charged expenditures are generally not subject to voting by the House of the People, but in exceptional instances, they can be voted on by the House in terms of Article 112(1). This is considered true.
Detailed head means a programme, function, scheme, or sub-scheme.
Direct charges in Public Work Division relate to direct expenses of a job or project, including charges for regular establishment, and any expenses exceeding ₹1000.
Indirect charges are incidental expenditures in a work.
Total expenditure on account of a work includes both indirect and direct expenses.
A Direction Officer refers to a Divisional Officer, Superintendent Engineer, Departmental Accountant, or Pay & Accounts Officer.

Chapter 2: General Outlines of System of Accounts

The classification of transactions in Government Accounts shall have a closer reference to the function, programme or activity of the Government.
Article 10 of GFR, 2005 & Article 29 of GAR, 1990 specifies this.
When a division provides service or supplies material to another division, records should be maintained using book transfer, or advance payments.
Various reference codes associated to accounts/transactions include 2059, 4210, 005, 4000, 8671 and 8782.
The detailed classification of a Public Work under a Major Head must be introduced, and the booking system for such expenditure is presented by the CGA.
Budgetary estimates and other governmental transactions are classified and categorized.

Chapter 3: Relations with Chief Controller of Accounts

The Divisional Accountant is responsible to ensure divisional accounts do not fall into arrears.
The Chief Controller of Accounts is responsible for posting a Divisional Accountant.
The Controller General of Accounts, Controller & Auditor General of India and the concerned Government handle the posting of a Divisional Accountant.
Divisional Accountant has three roles (Accountant, Financial Assistant, internal checker)
A Divisional Accountant is always treated as a senior member of the establishment when working independently or not of the Divisional officer.
Important processes and actions regarding financial transactions relating to projects and/or repairs and construction, with costs not covered by the government fund, are often described.
The process of financial transactions ensures timely reporting and prevents delays in financial matters.
Various other procedures related to official tasks and responsibilities, including financial transactions and records, are also described.

Chapter 4: Appropriation and Re-appropriation

Government accounts are classified by function/program/activity
Consolidated Fund of India, Emergency Fund, Contingency Fund and Public Accounts refer to different accounting parts.
Public Account handles transactions booked not under Consolidated or Contingency Funds.
Consolidated and Contingency Funds are managed by the Government of India
The Revenue division of the Consolidated Fund of India has two subdivisions (Revenue Receipt and Revenue Expenditure).
The Capital division of the Consolidated Fund of India has three subdivisions (Capital Receipt, Capital Expenditure, and Loans and Advances).
The rules dealing regarding Contingency Fund of India, Public Accounts, and other matters of appropriation are reviewed.

Chapter 5: Cash

Cash includes legal tender coins, cheques/drafts, and revenue stamps (Rs. 1 and Rs. 5).
Items excluded from cash include personal cheques of DDO, Government Securities, and postage stamps.
Final payment in PWD refers to payment to a contractor. The final settlement process for outstanding payments.
Important processes associated with financial transactions through banking procedures, including the issue and processing of letters of credit (LoCs) and payments.
Rules/regulations related to issuing, processing, and controlling cash transactions.
A list of several items associated with cash transactions is provided, giving details of the items and processes.

Chapter 6: Store

Store administration covers acquisition, custody, distribution, and disposal of stores.
Any breach of store administration rule is a serious concern for the CPWD, handled by specific officers and authorities as per the rules.
The fundamental principle of store administration is that the cost of acquisition should be debited to the particular work account.
Several specific cases of store-related transactions and costs are discussed, including road metal, tools and plant, and other relevant stores.
Procedure relating to the valuation, costing, and recording of store-related transactions is described involving multiple forms and procedures.

Chapter 7: Transfer Entry

A transfer entry is a formal record of transferring a receipt or charge from to another account.
It may be a correction of errors or to support transactions involving suspense accounts, deposits, remittances or other relevant accounts.
All transfer entries are formally recorded within a specific time frame and must be checked and ratified by designated parties.
Various types of entries and their purpose are detailed in the process of managing accounts.
The requirements for completing the transfer entry process is clearly laid out in relevant forms.
Various procedures in which a transfer entry is required. The procedures specify how to manage errors within the process, and the authorities to handle the adjustment process are indicated.

Chapter 8: Revenue Receipts

The responsibility for ensuring demands, recovery, and record-keeping of outstanding dues to the Government rests with the Divisional Accountant.
Processes of making recoveries (in case of revenues being owed to the government), with procedures to create receipts and maintain records.
Rules for handling special cases of revenue realization (involving supervision costs, sale proceeds, etc.) with exceptions for prompt handling of these cases.
Rules/procedures to manage the recovery of license fees from various categories of government employees and tenants and the subsequent procedures.
Handling of cash receipts, and related accounting processes including payments for various services/items, and procedures to settle accounts, including processes of transfer/reconciliation of outstanding amounts.

Chapter 9: Works Accounts

Expenditure related to construction or maintenance of a work are divided into Capital and Revenue.
Works accounts are maintained separately to record individual works and contractor/supplier transactions.
Records are maintained using various documents including Muster Rolls, Measurement Books, and Work-Charged Establishment Bills.
Procedures for payment to contractors and other parties are described
Issues regarding cost of special establishment for acquisition of land.
Details on cost calculation for special or general purpose work and transactions, including handling of payments, are specified.
Essential documentation for work accounts (like muster rolls, measurement books, and others) is indicated.
Cases where multiple works are connected through a single contract is detailed.

Chapter 10: Financial Rules and Procedures

Various aspects of financial rules and procedures for government dealings are reviewed.
Procedures of reconciliation of financial transactions, and relevant approvals/authorizations for various financial transactions are highlighted.
A summary of significant tasks and responsibilities for financial transactions relating to estimates, appropriations, and permissions.
Some cases of when a transaction should be credited or debited

Chapter 11 : Manufacture Accounts

The manufacture's transactions related to general and specific work orders are kept in separate accounts.
History, job, and material cards are used to determine manufacturing costs.
The progress of a manufacture is recorded in the Manufacture Register.
Rules relating to handling capital charges associated with manufacture are explained, with a focus on distinguishing between issues relating to single-season and multi-season works.

Chapter 12: Suspense Accounts

A suspense account holds transactions that cannot be immediately categorized into a particular account/category.
Expenditure and receipts relating to various sub-heads are summarized before being transferred to the relevant accounts to track and manage transactions.
Rules for updating the suspense account and reconciliation of charges with other accounts, and handling of transactions and balancing entries in these accounts.
Explanation of rules regarding accounting operations, showing how to handle discrepancies and errors regarding payments or issues in the accounts.

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Description

Test your knowledge on the financial procedures related to road maintenance charges. This quiz covers various aspects, including account debits, material charges, and documentation required for tools and plants. Perfect for students and professionals in civil engineering and public works.