AAO 70% QUESTION PAPER

1997

2002
SOUTHERN RAILWAY
Selection of Assistant Accounts Officers
(70 percent quota)
Time: 3 hours 19/08/2002 Max Marks 150

Instructions to candidates
1. The question paper consists Four sections. Section” A” caries 30 marks, Section “B” carries
20 marks, Section ”C” carries 20 marks and Section “D” carries 80 marks
2. all questions in the first three sections „A‟, „B‟ and „C‟ are to be attempted
3. in section “D” any FOUR questions have to be attempted out of the total 8 questions

Section A
Explain whether the following statements are “TRUE” or “FALSE” giving reasons for your answer
10 x 3 = 20 Marks
1. all expenditure on computer and other related items is charged to Plan Head No 17- Capital
2. all expenditure on repairs of Plant & Equipment is charged to Demand No 07- Minor Head 500
3. GM has full powers to approve and sanction expenditure on modifications and improvements to
Rolling Stock
4. excise Duty and Sales tax is payable on all items of rolling stock manufactured or repaired in
railway workshops
5. works and stores tenders are to be awarded to L1 only as per the latest guidelines
6. study leave and Hospital leave can be sanctioned by DRMs
7. the value realised from scrap sales is allocated to sundry earnings
8. surcharges is levied on all consignments booked as wagon loads
9. leave encasehment is permissible for balance credit of LHAP
10. arbitration awards are to be treated as “charged Expenditure”

Section B
Multiple choice questions There is only one correct answer
10 x 20= 20 Marks

1. this is an index indicating fuel efficiency

a. operating ratio b. BCI
c. ROR d. SFC
2. expenditure on safety related works is allocated to
a. DRF b. DF
c. Contingency Fund d. SRSF
3. staff related to expenditure of POH debits from Raiwlay Workshop is allocated to this
Primary Unit
a.1 b. 2 c.34 d.99
4. expenditure on ballast for track renewal works is allocated to
a. Plan Head 31 PU No 03
b. D No 04 PU No 32
c. D No 04 PU No 28
d. Plan head PU No 08
5. an expenditure of Rs 100000/- on ceremonial occasions is sanctioned by

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 a. DRM b. AGM c. GM D. Railway Board
6. concession for senior citizens is given as
a. 30 % in all classes in Mail and Express Trains only
b. 30 % in sleeper class and second class only
c. 25 % in oridinary second class
d. 25 % in all classes beyond 500 KMs
7. in case fo missing non-issued tickets in SPTMS
a. debits are raised for single-fare up to the farthest point
b. debits are rasied for second class-fare to the farthest
c. at a flat-rate of Rs 500/-
d. debits are rasied for 4 dult-fares in II Mil Express to the farthest station
8. powers are delegatged to CWMs in respect of jobs done for PSUs
a, to waive off the full Proforma on –cost
b. to charge only 50 % of the on cost
c. to charge 0 % on cost
d. none of the above
9. commuted portion of the pension is restored
a. 15 years from the date of super-annuation
b. 15 years from the date of commutation
c. 12 years from the date of retirement
d. none of the above
10. all expenditure in workshops in respect of deposit works
a. is first charged to WMS
b. only the direct labour and direct stores in first charged to WMS
c. on cost and administrative overheads are charged to Deposit works directly and the rest to
WMS first
d. none of the above

Section C
5 x 4 = 20 Marks
Distinguish between:
1. Consolidated Fund and Contingency Fund
2. workshop manufacturing suspense and Mis Advance Capital
3. draft para and action taken note
4. coaching earnings and other coaching earnings
5. IRCA and IRFA adjustments
Section D
Answer any four questions
4 x 20 = 80 Marks
1. Explain in detail the costing system adopted in our Repair Workshops. In what respects it is
different from the one followed in our Production Units. Do you consider that our system is working
satisfactorily?
2. Write critical comments on the incentive scheme adopted in workshops. Do you opine that the new
guidelines and increased rates of incentive issued in 1999 and the steps taken so far have served
the purpose?
3. Explain he salient features and deficiencies if any in the PRS and SPTM accountal of the earnings.
Is the system of concurrent checking of accounts working well? Give your suggestions for
improvement.
4. Explain the different areas and the scope for „Leakage of Revenue‟ and give your suggestions for
improvements in the system of internal checks in the Accounts Office and inspections of the TIAs

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5. Is the financial and budgetary control of earnings and expenditure exercised by the accounts dept
satisfactorily? What are the steps to be taken for improvement of the entire process?
6. „The system of giving accounting allocation by the departments and their checking in the accounts
department is a farce resulting in enormous number of mis-classifications‟ Please comment
7. „The pension debits received are not audited. There is no effective system of cheming reviosnof
pension payment‟ give your views and suggestions if nay for improvement
8. „finance concurrence in general and finance vetting of indents and estimates can be done away
with to improve efficiency and perform better‟ Give your critical views on the above recommendation.

&/&/&/&/&/&/&/
WWWWWWW

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 2005
SOUTHERN RAILWAY
Examination for Selection for the post of Assistant Accounts Officers
(70 percent quota)
Time: 3 hours 5th January 2005 Max Marks 150

Note 1. THE QUESTION PAPER CONSISTS OF FOUR SECTIONS. SECTION-A AND SECTION-B CARRY
24 MARKS EACH, SECTION-C CARRIES 20 MARKS AND SECTION –D CARRIES 82 MARKS
2. ALL QUESTIONS IN SECTIONS – A , B AND C ARE COMPULSORY
3. IN SECTION –D ANSWER ANY FOUR QUESTIONS, ALL OF WHICH CARRY EQUAL MARKS

SECTION - A 8 x 3 = 24 Marks
Explain whether the following are TRUE or FALSE giving reasons and explaining the correct position.
1. General Manager has no power to authorise SAG officers to travel by Private Airlines
2. Arbitration awards under Arbitration Act 1996 can be contested in a Court Of Law
3. Works and Stores tenders cannot be awarded to a party other than the lowest (L-1)
4. National Holiday Allowance is payable to eligible staff for the three National Holidays only
5. Dividend payable on Capital invested in Residential Buildings is less that the Capital
invested in Track
6. FReight on material transported by train for a Deposit Work executed by the Railway is
credited to Abstract – Y
7. Accident Compensation, Safety and Passenger Amenities Fund has been abolished
8. City Compensatory Allowance is not include for Leave Salary Encashment at the time of
retirement
SECTION B 8 x 3 = 24 Marks
How will you deal with the following situation?
1. After opening of the tenders, one of the tenderers offers a discount
2. wagons weighed enroute are found to carry excess weight beyond the permissile limits
3. ex-gratia payment has been sanctioned by GM to railway employees affected by Tsunami
4. central railway refuses to accept IRFA debits on the plea that I is not an adjacent railway of
southern railway
5. a PHOD asks the administration to pay the entire amount of Rs 2000/- in December 2004 for
his mobile phone provided by the railway
6. a special pay sheet is lost by the cashier before payment has been made
7. you have detected a fraud of aout Rs 50000/- while inspecting a booking office
8. after opening of the tenders, the lowest tenderer expresses inability to carry out his work

SECTION- C 5 x 4 = 20 Marks
Distinguish between ANY FIVE of the following
1. Special Railway Safety Fund and Railway Safety Fund
2. PLB and Incentive Bonus
3. PEI and Operating Ratio
4. Gross Traffic Receipts and Gross Earnings
5. Single Tender and Single Offer
6. Pink Book and Green Book
7. Vote-On-Account and Voted Expenditure

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 SECTION – D 82 Marks
FIRST QUESTION IS COMPULSORY AND CARRIES 22 MARKS ANSWER ANY THREE OF THE
REMAINING EACH OF WHICH CARRIES 20 MARKS

1. The three major achievements of the Accounts Department in the last 50 years are
Computerisation in the 60s, Revised Classification in the 70s and FMIS in the 90s. Elaborate
on the statement
OR
What are the major points of justification for provision of the 5th and 6th line between Chennai
Central and Arakkonam. What are the points to be examined in Finance when such a
proposal is received for inclusion in PWP?
2. What are the salient features of accounting followed in Southern Railway for reserved
ticketing and in reserved ticketing in passenger traffic? What are your suggestions for
improvement in both areas?
3. Elaborate the present system of accountal of Pension Payments. What are your suggestions
for improving the same?
4. What are the important recommendations of Sudhir Chandra Committee? What changes are
necessary in the present system of project management as far as Accounts Department is
concerned?
5. What is the Official Language Policy followed in the railways? List out the documents which
must be bilingual under section 3(3) of the Act. Give the Hindi equivalent for FA&CAO,
Senior AFA and FC (Railways)
6. What are the various ways in which Railway Projects are financed? Explain the special
features of financing followed in MRTS projects
7. elaborate on the system of Inventory Control followed in Railways with special emphasis on
the role of Accounts Department
8. „operating ratio is a good indicator of the financial health of a railway‟, elaborated\ on this
statement, what are your suggestions to bring down the operating ratio of Southern Railway
to less than 100 % in the next five years

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 2008
SOUTHERN RAILWAY
Examination for Selection for the post of Assistant Accounts Officers
(70 percent quota)
Time: 3 hours 23rd January 2008 Max Marks 150

Note 1. THE QUESTION PAPER CONSISTS OF FOUR SECTIONS. SECTION-A CARRIES 15 MARKS,
SECTION-B CARRY 10 MARKS. ALL THE QUESTIONS ARE TO BE ANSWERED IN THESE TWO
SECTIONS
2. SECTION-C CARRIES CONSISTS OF TWO QUESTINS
3. SECTION –D CARRIES 82 MARKS CONSISTS OF 7 QUESTIONS OUT OF WHICH FOUR HAVE TO
BE ANSWERED. EACH QUESTION CARRIES 20 MARKS
SECTION - A 3 x 5 = 15
Explain whether the following are TRUE or FALSE giving reasons
1. Financial performance is judged by wagon turn around
2. arbitration awards are to be treated as charged expenditure
3. General Managers have full powers to waive profit and departmental charges in respect of
deposit work of a central Government organisation
4. the value realised from scrap sales is allocated to sundry earnings
5. a tender submitted after the opening date of a tender can be considered if it is financially
advantageous to railways
SECTION B 2 x 5 = 10
I Identify the correct choice
a. expenditure which cannot be anticipated is met through Consolidated Fund of India/
Contingency Fund of India
b. transaction between railways and other ministries is known as Transfer Transactions/
Remittance Transactions
c. freight on material transported by a train for a deposit work executed by the railway is
credited to Abstract Y / Abstract Z
d. postal haulage charges are computed on berth replacement / seat replacement
e. the index of fuel efficiency is SFC / O R

SECTION –C 4 x 5 = 20

1 ) Distinguish any FOUR of the following

a. Special Railway Safety Fund and Development Fund
b. Originating Earnings and Apportioned Earnings
c. M&P Programme and Works Programme
d. Bills Receivables and Bills Payable
e. IRCA and IRFA adjustments
f. Stock Adjustment Account and Stores in Transit account
g. Fall Clause and Option Clause

2) Write short note on any FIVE of the following 5 x 5 = 25

a. Traffic Book
b. Inventory Turn over Ratio
c. P E Index
d. PRIME and AFRES
e. Official Language Policy
f. Internal Rate of Return
g. Material Modification

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 SECTION D
Answer any FOUR of the following 4 x 20 = 80
1. What are the reasons for the operating ratio of Southern Railway exceeding 100? Is it healthy or
inescapable? If it is not acceptable level, what are your suggestions for bringing it down below
100
2. What is the process for preparing the revenue and expenditure budget on Southern Railway?
What are the various stages of Budgetary Review? Also discuss about the adoption of Zero
Based Budgeting Techniques.
3. What are the major points of justification for electrification of existing Broad Gauge line between
station A and Station B. what are the checks to be exercised by Finance when such a proposal
is received for inclusion in PWP?
4. “Control of inventory is the effective way to control expenditure”. In the light of this, describe the
inventory control mechanism on railways right from indenting stage through procurement,
storage, issue and disposal?
5. What is traffic suspense? What are its constituent items? What steps you would suggest to
reduce traffic suspense to the minimum?
6. Explain in detail the Costing System adopted in Southern Railways Repair Workshops? In what
way it differs from the system of Production Units. Can you suggest any improvement on this?
7. Describe the various sources of funding for Railway Projects. Describe what the alternative
sources of finance are. What do you understand by Pubic-Private-Partnership.PPP)

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 2009
SOUTHERN RAILWAY
EXAMINATION FOR SELECTION FOR THE POST OF ASSISTANT FINANCIAL ADVISERS
(70 PERCENT QUOTA)
Time: 3 hours 19th February 2009 Max Marks 150
INSTRUCTIONS TO THE CANDIDATES
Do not write your Roll No or name anywhere in the Answer Book. Only the Roll No should be written on the
top sheet in the space provided.
NOTE 1. Answer any five questions. All questions carry equal marks
The marks for each sub-section are indicated in the brackets
2. All questions have two sub-sections – (a) & (b)
Candidates must answer both (a) & (b) of each questions attempted, to qualify for marks. For
example if Q 1 is attempted then both (a) & (b) of Q1 must be answered to get the benefit of full evaluation of
30 marks as allotted to the whole question.

Answer any five questions (15 marks)

Q 1. (a) What do you understand by inter-railway and intra-railway transactions? How are such
transactions proposed, accepted, adjusted and reconciled?
(15 marks)
(b) Do you think that the preparation of two accounts current – Approximate and Actual are
necessary? Explain in detail
(15 marks)
Q 2 (a) What is a “Works Programme”? What are the various steps involved in its finalisaiton
(15 marks)
(b) Discuss “Pink Book”. “Orange Book” and „Divisional Works Programme‟

Q 3 (a) Write Short notes on any Five (15 marks each 3 marks)
i. Traffic Suspense
ii. Admitted debits and disputed debits
iii. Draft para and provisional para
iv. Material modification
v. Stock adjustment account
vi. Single tender and limited tender
vii. “global meltdown”
(15 marks)
(b) What do you understand by Inventory Control? What is ABC analysis and its advantages?
(15 marks)
Q 4 (a) What is meant by Apportionment of Earnings? How is it done in respect of Goods Earnings of
Through Traffic?
(15 marks)
(b) What is “Zero Based Budget”? How can this be made applicable for Revenue Budget?
Q5 (a) distinguish between the following (any three)
(15 marks – each 5)
i. Fall Clause and Option Clauses
ii. Zonal Tender and Bulletin Tender
iii. Purchase Preference and Price Preference
iv. Development Fund I & II
(15 marks)
(b) What are the Objectives of Budgetary Controls? Discuss the various Budgetary Reviews.
Q 6 (a) What is meant by Productivity Test? Do they serve any purpose?
(15 marks)

Page 8
 (b) What is “Operating Ratio”? Is it a fair Index to assess a Railway‟s Performance? How can we
improve upon the “Operating Ratio” of Southern Railway?
(15 marks)
Q! 7 (a) What is Stock Verification? How is the Stock Sheet prepared and finalised?
(15 marks)
(b) What are the various heads under “Purchase Suspense”? Give your suggestions for
maintain this “Suspense” efficiently and currently?
(15 marks)
Q 8 (a) What is meant by Exchequer Control? In addition to Budget allotments, Demand and Primary
Unit –wise-Why is Exchequer Control still necessary?
(15 marks)
(b) What are the various kinds of leave an employee is entitled to? When can leave been
encahsed?
(15 marks)
Q9 (a) Discuss the salient features of the Official Languages Act 1963. Suggest steps for promoting
Rajbhasha in southern railway.
(15 marks)
(b) How would you inspect an Executive Office? What are the objectives? Give suggestions for
improving it.
(15 marks)
Q10 (a) Elaborate on the significance of “Cheques and Bills” reconciliation How can computerisation
help in this area?
(15 marks)
(b) Discuss the merits and demerits of the Incentive Scheme on Railway Workshop

((((((((((((((((((@)))))))))))))))))))

Page 9
 2010
SOUTHERN RAILWAY
EXAMINATION FOR SELECTION FOR THE POST OF ASSISTANT FINANCIAL ADVISER
(70 PERCENT QUOTA)
Time: 3 hours 18th August 2010 Max Marks 150
SECTION- A
Answer in one word 8 x 2 = 16 Marks
a) The Suspense Head use to book expenditure the allocation of which is not known is_____
b) Wages not paid to staff within the stipulated period are taken to
________________________ of Unpaid Wages Account
c) In Railway Accounting ____________________________ sets of journal are maintained
d) All Transfer Transactions between railways are adjusted through ______________________
e) Interest on account of loans and advances is credited to Railway Board through
_______________
f) The register maintained in accounts office to ensure that appointments are not made in
excess of post sanctioned is known as ____________________ register
g) Estimate of Expenditure which is not submitted to vote of parliament known as
_________________expenditure
h) Expenditure on track circuiting is charged to ____________________________
i) Cost of manufacturing of section of line not opened for traffic is charged to
________________
j) When railway land is lost through erosion, cost of the same is written back from capital to
______________
SECTION B
Identify the correct choice 7 x 2 = 14 Marks
Answer any seven
a) Bulk of southern railways apportioned earnings are generated through -
Passenger/Goods traffic
b) In Appropriation Accounts expiations are furnished for variation between original grant
and actual expenditure (correct / incorrect)
c) Block Account represents all physical assets of railways financed from loan capital and
railway‟s own generation funds ( correct / incorrect)
d) Tender received after the specified time of opening is known as – delayed tender / late
tender
e) Railway pensioners are required to submit a life certificate once in a year / once in two
years
f) The object of maintaining an Abstract Of Bills passed in Accounts Office is to reduce the
number of cheques drawn everyday/ to issue more cheques of smaller value
g) The payment received by a railway employee while under suspension is known as
subsistence allowance / compassionate pay
h) Leave on Average Pay is credited to the loan account of railway employee at the rate of
2 ½ / 3 days for each calendar month of service
i) Leave granted for railway employee under medical treatment for injures sustained in the
course of official duties is known as accident leave / hospital leave
j) receipts from forfeited Provident Fund loans is credited to Railway Earnings / Staff
Benefit Fund
SECTION - C
Answer any two 2 x 10 = 20 marks
a) Originating Earnings and Apportioned Earnings
b) Travelling Allowance and Transfer Grant

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 c) Voted Expenditure and Charged Expenditure
d) Group Incentive Scheme and CLW pattern of workshop incentive
e) Rate Contract and Running contract
SECTION – D
Write short notes
answer any two questions 2 x 10 = marks
a) Inventory turn over ratio
b) Traffic book
c) Material modification
d) Workshop general register
e) Proforma on cost
SECTION – E
Answer any five questions 5 x 16 = 80 marks
a) What is known as the official language policy of the Govt? How is its implementation
mentioned? 8 + 8 = 16 marks
b) What is the impact of 6 Pay Commission on the operating ratio of southern railway? How
th

the operating ratio can be brought down? 8 + 8 = 16 marks

c) What are the different types of estimates prepared for execution of works? What are the
points that are verified in accounts office while certifying the estimate 8 + 8 = 16 marks
d) What are the different types of tenders that are used to execute a work in the railways? What
are the modifications effected to general conditions of contract at recent years
8 + 8 = 16 marks
e) What are the major sources of earnings for Indian railways? What are the steps that could be
taken to improve the sundry earnings in Southern Railway?
f) What are the various stages of budget review followed in railways? What is the mechanism
to ensure that the revenue expenditure is regulated with references to budget grant?
8 + 8 = 16 marks
g) What is the methodology adopted in the Internal Check of Establishment claims? How can
we make our internal check mechanism more effective? 8 + 8 = 16 marks
h) How the Revenue Accounts is current compiled in Accounts Office every month? Detail the
procedure followed in compilation and the annexures that are generated? 8 + 8 = 16 marks
i) What are the various suspense heads that are operated in the railways? What is the need to
operate them? 8 + 8 = 16 marks

Page 11
 EXPECTED QUESTIONS
PAPER I BOOKS & BUDGET
(Both long &short answers)
1. What is Budgetary Control? How in railways it is used as an effective tool to control expenses
and the various stages of Budgetary Control.
2. How Performance Budget is a better exercise over the traditional budget? Enumerate two
examples from the Demand wise Out Put Units.
3. Earnings Budget is a cautious exercise in assessing the Revenue Earnings. Describe the stages
in which the earnings budget of a Zonal Railway is prepared.
4. What do you understand by Integrated Budget? Describe the components of it .
5. Railways operate a large number of Suspense Heads. Discuss the need, the context and the
method of operation of any THREE of them selecting one each from Earnings, Revenue and
Expenditure and Works Expenditure. Is computerization of these accounts would improve
efficiency?
6. The Public Accounts Committee of Parliament has repeatedly criticised the increasing trend of
Misclassifications in Accounts and Mistakes in Budgeting. Present an analysis of the causes for
these problems. Suggest appropriate steps to eliminate their recurrence
7. What is “Appropriation Accounts”? Annexure J is an index of the efficiency of the Accounts
Department. Discuss how Southern Railway can minimise the number of instances brought under
Annexure J
8. In the existing systems, the Closure of Accounts takes considerable time. Even then the booked
expenditure does not reflect the actual and correct picture. Critically examine the procedure of
monthly, quarterly and annual closing and examine the proposed online submission of Accounts
Current from unit level to Railway Board would improve the situation. Also, indicate whether
Approximate Account Current should continue
9. The present system of Closing of Accounts and Transfer Adjustments delay the availability of
accounting information for decision-making. What are the areas in which this can be improved upon?
10. What are the sources out of which the Railway assets are created? Does the Railway need such
different sources under the existing financial system of Railways?
11. What is the need for separate Audit by representatives of Comptroller and Auditor General with
effective Internal Auditing within the system, can C& AG Audit can be dispensed with discuss in
detail giving pros and cons.
12. Why the Parliament exercises Control over the Railway Finance and describe the steps in detail.
13. How Control over Expenditure is exercised in Railways? Describe in detail the various methods
used to control expenditure with special reference to the latest order on reduction in expenditure and
austerity measures
14. Describe the Role and Relevance of Traffic Book with reference to Traffic Suspense. How
improvements can be made to reduce the outstanding?
15. What are the essential items to be inspected in the following field offices?
a. AEN‟s office b. Goods sheds c. Stores Depot
16. The role of Cash Office in making payment is redundant in the context of ECS/EFT mode of
payment. Discuss the relevance of Cash Office in terms of its twin functions of payment and revenue
collection.
17. What is Accounts Office Balance Sheet and what is the relevance in compilation of Earnings
Budget?
18. Short notes ZBB and the application in railways,
PRIME & AFRES
Transfer transactions & TWFA

Page 12
 PAPER II TRAFFIC COSTING
1. Trace the historical background of Traffic Costing in the Indian Railways. What are the
recommendations of the Task Force on Traffic Costing?
2. What is Green Book and define the various Schedules of Green Book?
3. Define the present day costing of EMU costing. Do you offer any suggestions for
improvement?
4. How Coaching Costing is done in Indian Railways ? Describe any three Annexure.
5. What do you think of the merits and demerits of the present day Traffic Costing on the
Indian Railways?
6. How for the present Traffic Costing can help in Train Costing when New Service/Train is
introduced?
PAPER II MANAGEMENT ACCOUNTANCY
1. What do you understand by Ratio Analysis? Define any three analysis that are used in the
Railways
2. What is Operating Ratio? Is it a Financial Ratio? Give reasons.
3. Highlight the importance of Sensitivity Analysis in evaluating investment proposals. How
would you apply this to a proposal for a New Line Project?
4. What is Break-Even Point? Enumerate two areas it can be utilised to assess the financial
viability of project/service
5. Capital Budgeting is done on the Profitability of the Project. Define how DCF technique is the
better choice to assess the profitability
6. What is Capital Budgeting? What are the areas where in railways the Capital Budgeting
techniques are used

PAPER II FINANCIAL JUSTIFICATION FOR PROJECT INVESTMENT

1. Financial justification for

a. New Line b. Doubling c. Electrification d. Gauge Conversion
2. short notes: PERT, CPM
3. Time and Cost over run in Railway projects Give the reasons and remedies

PAPER II STORES ACCOUNTS

1. What is Inventory Control? How ABC analysis helps to have better control over inventories?
Do you have suggestions to make?
2. Define the role of Stock Verification Organisation in the Railways. How it has helped
Railways in controlling the stock on board and realisation of Auction Sales Earnings?
3. The role of Stock Adjustment Accounts in closing the Stores Inventory is very essential.
Discuss
4. short notes: a. various suspense heads under Store Suspense Plan head 7200
5. enumerate the recent orders of the Railway Board on the negotiations with the
suppliers/contractors
6. How far the system of purchase through Open Tenders ensured quality with economy and
reliability? Should Railway change over to a system of identifying reliable suppliers with long
term commitment in the interest of ensuring quality and reliability?
7. Higher Inventory Levels are preferable to “out of stock” situations. What are the economic
and financial implications with reference to E O Q?

Page 13
 PAPER II GENERAL EXPENDITURE ACCOUNTS
1. What is the role of various types of tenders in the Indian Railways? Have they made the
tendering system transparent?
2. What is material modification? What steps would you consider for accepting material
modification?
3. What are the provisions of Arbitration Act? How these provisions prevent unnecessary and
long legal battles in the context of Railway projects?
4. short notes on: a. SD b. EMD c. Performance Guarantee d. variations/vitiations in works
tenders
5. define the salient features of PWP and FWP
6. How the preparation of estimates is useful in assessing the quantum of expenses and the
magnitude of earnings?
7. short notes: a. inspection of field unit b. M Book c. book examination clause d. fall clause e.
Force Majoure e. Rider agreement
PAPER II WORKSHOP ACCOUNTS
1. Discuss the effectiveness of prevailing system of Incentive Payment in railway workshop. How is it
an instrument for improving productivity with quality commensurate with investment for modernisation
of the workshop?
2. There is growing feeling that “we should better privatise, better buy than make”. Why is this so?
What role can stores and workshop accounts play to rationalise and ensure “makes”, more attractive
than “buys” and reverse the trend?
3. The existing system of Incentive Payment encourages inefficiency and dilutes quality. Can you
suggest any alternative system to improve productivity in the workshops?
4. The workshop out-turn statements truly and effectively reflect shop activities and efficiency of
workshops accounts office”. Discuss with particular reference to checks to be exercised in the
preparation of statement
5. Explain the linkage between Stores, WMS and Revenue Budget
6. How are POH debits settled between two zonal railways? What are the reasons or wide variation
in POH costs in different workshops and what can be done to bring about uniformity?
7. what are the main documents of costing in the railway workshop? How the difference between the
GAC hours and JC hours are reconciled?

May god bless you all! Heart felt wishes to all!! May the best win the race!!!

Page 14
 LDCE QUESTION PAPERS YEAR WISE
MAY 1994
PAPER I
GENERAL KNOWLDEDGE AND ENGLISH; GENERAL PRICIPLES OF GOVERNEMNT
ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND
BUDGET INCLUDING TRAFFIC BOOK
Important: this paper contains two sections A and B. both the sections have to be answered. Section
A carries 50 maximutm, and section B carries 100 marks
SECTION A (Max marks 50)
GK1. Expand the abbreviations in any five 5 marks
i. GATT
ii. IMF
iii. ANC
iv. ASEAN
v. SLV
vi. NPT
vii. CAT
viii. RBI
ix. ADB
x. UPSC
GK 2. Write short note on any five 10 marks
i. Isobar
ii. Dunkel
iii. Territorial waters
iv. Wind farms
v. Bosania
vi. Telugu ganga
vii. Nelson Mandela
viii. Yasser Arafat
ix. Narmada project
x. Hazarat bal mosque
GK 3. Match the following 5 marks
i. Lara a. Jhansi
ii. Rabindranath Tagore b. Atomic Energy
iii. Lakshmi Bai c. Cricket
iv. Homi Baba d. Chess
v. Anand e. Geethanjali
GK 4. Use any five of the following pairs of words in sentences of your own 10 marks
i. coarse – course vi. Prey - pray
ii. wise - vice vii. Brake - break
iii. call – cavail viii. Tall – toll
iv. rain – rein ix. Foil - fail
v. sell - cell x. Naval – Novel

GK 5. Fill up the blank with suitable prepositions 5 marks

The absence _____ census data is taken advantage of ____ various persons ____ each state
____boost the estimates _______ persons speaking their language.

GK 6. Write a note in not more than 250 words one of the following 10 marks
a. national literacy programme

Page 15
 b. rail road coordination
c. public sector undertaking
GK 7. Give one word for any five of the following 5 marks
i. one who sells flowers
ii. doctor treating children
iii. specialist in heart disease
iv. documents issued by authority to its citizens who wants to travel abroad
v. the presiding authority over Lok Sabha who generally conducts its proceedings
vi. one who writes dramas
vii. the highest point of a mountain
viii. a person who knows a number of languages
ix. science dealing with study of animals and birds

SECTION B
This section contains two parts A and B. Attempt any four questions taking any two from each part.
All questions carry equal marks
PART A
BA 1. Discuss the committee system introduced for ________ of the budget and examine whether
this in any way rendered any of other already existing instrument/procedure for financial control of
railway by parliament redundant.
BA 2. What is the purpose of different “funds” in the set up of existing financial system of railways?
Has there been any change in the last two years? Discuss the pros and cons of the change if any
BA 3. In what way the present set up and systems and procedures in railway help or hinder the
railway in coping with the recent liberalisation policy initiated by the Government? Discuss
BA 4. Write short notes on any four
a. Railway Convention Committee
b. Plan Heads
c. Indian Railway Finance Corporation
d. Konkan Railway Corporation
e. Canons Of Financial Propriety
BA 5. What is the need for separate audit by representatives of the Comptroller and Auditor General?
With more effective organisation or internal auditing system can it be dispensed with? Discuss
PART B
BB 1. Do you consider the present procedure method of assessing earnings effective and realistic?
Suggest any improvements / innovations you feel necessary
BB 2. How far the principles of zero based budgeting and management accounting been adopted I n
railway in assessing the requirement as also reasonableness and need of inputs and analysis and
presentation? Discuss
BB 3. “The present system of monitoring and accountal of remittance of earnings is not effective In
preventing frauds”. Discuss. Do you suggest any procedural changes?
BB 4. “The present procedure of apportionment of earnings and expenditure is not fair to the
Southern Railway with limited lead”. Discuss
BB 5. Discuss whether it is necessary to have Annual Works Programme, and M&P as at present?
What are the alternatives/improvements you would suggest and why?

Page 16
 LDCE QUESTION PAPERS YEAR WISE
May 1994
PAPER II
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT
ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL
EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS
Important: this paper contains two sections A and B. both the sections have to be answered. Section
A is compulsory for all candidates and carries 50 marks maximum
Section B which carries 100 marks maximum has two parts A and B. candidates should attempt
either of the two papers depending on their optional subjects.

Section A maximum marks 50

Attempt any two questions. Each questing carries 25 marks
A – 1. How far the present traffic costing been effective in determining realistically the financial
viability of introduction of new trains/augmentation of service?
A – 2. “Traffic costing like statistics is often used not for enlightenment in taking correct decision but
for supporting decisions one wants to take”. How far is this statement well founded or unfounded.
Discuss with specific cases if any illustrating your stand.
A – 3. How often the principle of marginal costing used in capturing / retaining the customer while
protecting and furthering the financial interest of railways? Illustrate
A – 4. How far the principle of zero based assessment of inputs and innovation in management
accounting principles utilised to further the objective of change over to unigauge system? Discuss.

SECTION B
Important: This section contains two parts A and B. Either part A or part B should be attempted by
candidates depending on their choice of optional Each part contains a maximum of 100 marks

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)

Answer any three questions. All questions carry equal marks
BA – 1. How far the present method of compilation and presentation of statistical data helped in
effective management decision and control on railway?
BA – 2. Division as profit center knows its expenditure and not its earnings. How far divisionalisation
of traffic accounts help in ensuring effective informed participation nad mobilisation in bettering the
financial performance of the division?
BA – 3. Has the computerisation of reservation system helped in improving the earnings, effecting
analysis of passenger profile to maximise the earnings/utilisation of seats, plug loopholes? Discuss
the effectiveness of passenger reservation system (PRS) and advance railway ticketing
system(ARTS) introduced in current booking.
BA – 4. Write Short Notes On
a. Firms Credit Notes (FCNs)
b. Special Casual Leave
c. National Holiday
d. Wage Period
e. Productivity Linked Bonus (PLB)
BA – 5. Discuss the present method of accountal and recovery of advances and dues like festival
advances, diet charges, electricity charges from the staff. Discuss whether the system for recovery is
effective and suggest any improvement felt necessary
BA – 6. What are the steps you would suggest to control the expenditure on establishment – which
has almost doubled over the last few years – for improving the competitiveness of the railways and
its viability?

Page 17
PART B (GENERAL EXPENDITURE ACCOUNTS AND WORKSHOP AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marks

BB – 1. Is risk purchase effective in our system? If not why not and what is the procedural/policy
correctives you would suggest?
BB -2. With the cost of finance the inventory carriage is increasingly becoming costly. How can
railways reduce inventory without compromising on effectiveness of its service and also ensure
economy?
BB - 3. Discuss the effectiveness of prevailing system of incentive payment in railway workshop. How
is it an instrument for improving productivity with quality commensurate with investment for
modernisation of the workshop?
BB – 4. How far the system of purchase through open tenders ensured quality with economy and
reliability? Should railway change over to a system of identifying reliable suppliers with long term
commitment in the interest of ensuring quality and reliability?
BB – 5. is the present procedure/method of planning , procuring and inducting machines as
replacement or for modernisation cost effective? What are the improvements you suggest to ensure
the investments slim, strictly need based and improvement is productivity commensurate with
investment is ensured?
BB – 6. There is growing feeling that “we should better privatise, better buy than make”. Why is this
so? What role can stores and workshop accounts play to rationalise and ensure “makes”, more
attractive than “buys” and reverse the trend?

Page 18
 LDCE QUESTION PAPERS YEAR WISE
6th September 1996
PAPER I
GENERAL KNOWLEDGE AND ENGLISH; GENERAL PRINCIPLES OF GOVERNMENT
ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO RAILWAYS; BOOKS AND
BUDGET INCLUDING TRAFFIC BOOK
Important: this paper contains two sections A and B. both the sections have to be answered. Section
A carries 50 maximum, and section B carries 100 marks
SECTION A
GK1. Expand the abbreviations in any five 5 marks
a) CTBT
b) ICRISAT
c) NABARD
d) ECAFE
e) PSLV
f) WTO
g) SEBI
h) MAT
i) ILO
j) BIFR
GK2. (I) Write short notes on any five 10 marks
a) Alamatti Dam
b) CHIPKO Movement
c) Medha Patkar
d) Damodhar Valley Corporation
e) Vote On Account
f) Atlanta
g) Solar Energy
Or
(ii) Write the main features of the official language Act 1963 (Act 19 of 1963)

GK3. Write a note in not more than 200 words on any one of the following 15 marks
a) Public sector disinvestment programme
b) Amarnath yatra
c) SAARC
GK 4. Fill up the blanks with suitable preposition 5 marks
Coming back _______ the Eastern Railway, operations were _____ its peak efficiency and ____
February and March 1969, _____ loading figures ____ coal and general goods set new records. ___
far ____ general goods loading is concerned the figures obtained _____ those months have never
been reached subsequently.
GK 5. Name the authors of the following books 5 marks
a) Discovery of India
b) My experiments with truth
c) Passage to India
d) As you like it
e) Ivanhoe
GK 6. What is common to the following railway stations from the point of view of fast travel 5 marks
Lucknow, Kalka, Amritsar, Dehardun, Bhopal, Bokaro, Ahmedabad, and Bangalore
GK 7. Name the four highest civilian awards given in our country naming atleast two recipients of the
highest award 5 marks

Page 19
 SECTION B (MAXIMUM MARKS 100)
This section contains two parts A and B. attempt any four questions taking any two from each part.
All questions carry equal marks of 25
PART A
BA 1. What are the various instruments through which the Indian railway finance corporation raises
funds? How are these deposited to meet the capital requirement of railways ? how does the Indian
railways discharge its liability to the corporation?
BA 2. write short notes on any four
a) Amortisation
b) Capital Fund
c) Railway Fare And Freight Enquiry Committee
d) Activity Based Costing
e) BOLT Schemes
f) Budgetary Reports

BA3. What are the various committees of parliament relating to railway financial performance?
Explain in detail the working of any one of the committees

BA4. “In the wake of economic reforms and liberalisation policies Indian railway‟s system and
procedures require fundamental change” discuss

BA 5. (a) What is the purpose of different funds in the set up of the existing railway‟s financial
system?
(b) What are the implications in financial terms and nature of justification between charging
of works to capital fund and capital-at-charge?

PART B
BB 1. What do you understand by zero based budget? How is this improvement over the
conventional system of budgeting in railways?
BB2. Explain the present system of remittance of earnings into government account. What are your
suggestions for improving the promptness of accountal?
BB3. How is the earnings budget of a railway formulated? What is the usefulness of various
statistical data in this exercise?
BB4. Within the appropriations voted by parliament, relays should be free to prioritise their
investments on works, rolling stock and machinery and plant. Do you agree? Give reasons for your
answer.
BB5. The present system of closing of accounts and transfer adjustments delay the availability of
accounting information for decision making. What are the areas in which this can be improved upon?

Page 20
 LDCE QUESTION PAPERS YEAR WISE
7th September 1996
PAPER II
FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING: MANAGEMENT
ACCOUNTING, TRAFFIC ACCOUNTS AND STATISTICS: ESTABLISHMENT (OR) GENERAL
EXPENDITURE ACCOUNTS WORKSHOP AND STORES ACCOUNTS
Important: this paper contains two sections A and B. both the sections have to be answered. Section
A is compulsory for all candidates and carries 50 marks maximum

Section B which carries 100 marks maximum has two parts A and B. candidates should attempt
either of the two papers depending on their optional subjects.

Section A maximum marks 50

A – 1. what do you understand by “life-cycle” costing? What are the important areas where it can be
employed? How is it an improvement over the normally known costing system?
A – 2. what is meant by financial ratios? Enumerate any three of them. Can the operating ratio be
considered as a financial ratio? Give reasons for your answer
A – 3. a work costing Rs 75 Lakhs and not included in the sanctioned budget is required to be
executed urgently. What is the procedure to be followed in the zonal railway before the work can be
commenced?
A- 4. in regard to goods traffic what is the traffic costing information available? How are they helpful
in investment formulation?
Section B
Important: this section contains two part A & B. either part A or Part B should be attempted by
candidates depending on their choice of optional. Each part contains a maximum of 100 marks.
Part A Traffic accounts and statistics establishment
Answer any three questions
All questions carry equal marks
BA 1. What is the impact and consequential changes on the traffic accounts office due to introduction
of passenger reservation system (PRS) and advanced railway ticketing system (ARTS)? Has this
contributed to the efficiency of internal check?
BA 2. Write short notes on
a) Cash in transit
b) Leave not due
c) Ex- Gratia bonus
d) Demands recoverable
e) Charges for haulage of postal traffic
BA 3. What are the types of statistical information generated from a goods invoice? Explain in detail
how any three of them are calculated.
BA 4. How far can the procedure relating to internal check in the accounts code be dispensed with in
respect of computer prepared pay bills?
BA 5. The performance of the accounts dept in recovering dues to the administration from the
employees requires improvement. Can you suggest any system improvement?
Part B General Expenditure accounts workshop and stores accounts
BB1. Higher inventory levels are preferable to “out of stock” situations. What are the economic and
financial implications?
BB2 what are the existing safe guards for effective control over expenditure? Can you suggest any
improvement?
BB 3. What do you understand by the “two envelope system” in a works tender? How is this an
improvement over the existing open tender system?

Page 21
BB4. The existing system of incentive payment encourages inefficiency and dilutes quality. Can you
suggest any alternative system to improve productivity in the workshops?
BB 5. an item was simultaneously ordered on two sources after an open tender – A at Rs 2.00 per
unit and B at Rs 2.05 per unit. B completes his supply within the delivery period of 90 days and A
fails to even commence supply. In this back ground a proposal is received from the COS for
enhancing the quantity on B, arguing that the item is regularly required and stocks will last only 15
days. B is agreeable for the enhancement. What will be your recommendations on the proposal?
Give reasons for your answer.

Page 22
 LDCE QUESTION PAPERS YEAR WISE
14th June 2001
PAPER I
Important; this paper contains two sections A and B. both sections have to be answere. Sectin A
carries 50 marks and Section B carries 100 marks
Section A (max marks 50)
GK I Expand the following abbreviations
(i) CBEC (ii) ICICI (iii) IRCON (iv) PAC (v) LIBOR (vi) SAIL (vii) TRAI (viii) BOLT
(ix) UNESCO (x) SEBI 5 marks
GK II write short notes onANY FIVE
I. BALCO disinvestment
II. Dabhol power project
III. External commercial borrowing
IV. Moody‟s rating
V. Narmada river valley project
VI. Green house effect
VII. Public distribution system 10 marks
GK III. write short notes in not more than 200 words on ANY ONE of the following
i. Official language policy
ii. Renewable energy sources
iii. Information technology 10 marks
GK 4 name the authors of the following books
i. God of small things
ii. Discovery of India
iii. Malgudi days
iv. Das capital
v. War and peace 5 marks
GK 5 name the sports associated with the following
i. Ranji trophy
ii. Durand cup
iii. Rangaswamy cup
iv. Thomas cup
v. Wimbledon 5 marks

GK 6 Use the following pairs of words in sentences of your own

i. Poll – pole
ii. Adept – adapt
iii. Excepted – expected
iv. Opposite – apposite
v. Cite – site 10 marks

GK 7 Fill up the blanks with suitable preposition

The cabinet __________ Wednesday decided _________ form a sub-committee _____ draw ______
a white paper __________ the financial position _____ the state. The Government wanted
________ place the factual position _____ the people ______ the white paper
5 marks

SECTION B max marks 100

Page 23
This section contains two parts A and B. attempt any four questions taking any two from each part.
All questions carry equal marks

BA 1. Indian railways are required to fund not only commercially viable projects but also non-viable
but socially relevant projects over the few decades. The massive investment requirements of the
shelf of pending projects need innovative measures for funding. Outline some of the specific initiates
taken by the railways in this direction and suggest further measures to over come the problem of
resource crunch.

BA 2 how is parliamentary control over railway‟s finances exercised? What is the role of various
parliamentary committees in this process?

BA 3 writes short notes on ANY FOUR

i. Ways And Means Advances
ii. Rakesh Mohan Committee
iii. Railway Safety Fund
iv. Action Taken Note‟
v. Commercial Exploitation Of Land
vi. Amortization

BA 4 what is zero based budgeting. What are the steps taken by the railways in the last five years to
adopt this system?

BA 5 what is the role of statutory audit on the Indian railways? Is it possible to dispense with the
organization if the internal auditing system is strengthened?

PART B
BB 1 what is appropriate accounts? Annexure J is the index of efficiency of accounts department.
Discuss

BB2 there is urgent need to simplify the procedure and speed up the realization and accountal of
traffic earnings. Discuss duly explaining the present system in detail

BB3 railways operate a large number of suspense heads. Discuss the need the context and the
method of operation of any THREE of them selecting one each from earnings, revenue and
expenditure and works expenditure

BB4 the delay in making available the acutals and the wide variation between the approximate and
actual render the present system of closing of accounts ineffective and liable for criticism. Give
concrete suggestions to make tangible improvements in this area

BB5 physical performance and financial results do not go in tandem so far as earnings are
concerned. What are the factors responsible for such a divergence?
&/&/&/
WWW

Page 24
 LDCE QUESTION PAPERS YEAR WISE
15th June 2001
PAPER II
This paper contains two sections A and B. both sections have to be answered .Section A is
compulsory for all candidates and carries maximum of 50 marks. Section B which carries maximum
of 100 marks has two parts A and B. candidates should attempt either of the two parts depending on
their optional subject

SECTION A (max marks 50)

A1 There is an overwhelming view that cross-subsidisation of passenger fare by freight rate should
be given up and there should be alignment of tariff with the costs. How far our traffic costing system
can be relied upon to take decisions in such important aspect? Do you have any suggestions to
make?
A2. What are financial ratios? Enumerate any three of them and examine their applicability to railway
working
A3. With the computerisation of accounts is should be possible to determine the cost activity wise.
Do you agree? What further measures are required to have meaningful data?
A4. What is the meaning of life cycle costing? What are the areas where it can be employed? Is it an
improvement over the normal costing system?

Or
What is marginal costing? Explain the scope for adopting this concept for maximising the intensity of
use of railway assets
SECTION B
Important: This section contains two parts A and B. Either part A or part B should be attempted by
candidates depending on their choice of optional

Part A (TRAFFIC ACCOUNTS AND STATISTICS; ESTABLISHMENT)

Answer any three questions. All questions carry equal marks

BA 1. How effective is the internal check mechanism of passenger reservations (PRS) and Advanced
Railway Ticketing System (ARTS)? Is the system fool proof and free from frauds?

BA2. The magnitude of outstanding under Traffic Suspense reflects the efficiency of traffic accounts
office. Discuss

BA3. (i) What are the important operating statistics relating to goods operations?
(ii) What is Specific Fuel Consumption? How it is computed for diesel and electric traction?
BA 4 writes short notes on:
I. Workmen‟s compensation
II. Transport allowance
III. Annual statistical statement No 40
IV. Operating ratio
V. Pension fund
BA 5. „Recommendation of V pay commission has thrown railway finances out of gear do you agree?
Or
Elaborate the procedures of internal check of establishment claims in a computerised environment as
distinct from manual bills

Page 25
PART B (GENERAL EXPENDITURE ACCOUNTS, WORKSHOP, AND STORES ACCOUNTS)

Answer any THREE questions. All questions carry equal marks

BB1. What are the latest instructions from Railway Board regarding (1) award of contracts n single
tender basis for execution of works and (2) post tender negotiation?

BB2. Write short notes on:

(i) risk purchase
(ii) profroma on cost
(iii) “make” or “buy” decision
(iv) completion reports
(v) variation in quantities in a works contract

BB3. “The workshop out-turn statements truly and effectively reflect shop activities and efficiency of
workshops accounts office”. Discuss with particular reference to checks to be exercised in the
preparation of statement

BB4. How far stock verification can contribute to better material management? What improvement, if
any, would you suggest to make it more effective?

BB5. Explain the linkage between stores, WMS and Revenue Budget

BB6. There has been a spurt in the cases referred to for arbitration on this railway. How far is this
attributable to the recent changes in the arbitration act? Are there deficiencies in contract formulation
and management? Suggest remedies.

Page 26
 LDCE QUESTION PAPERS YEAR WISE
MAY 2003
PAPER I
PART I GENERAL KNOWLEDGE & ENGLISH
1. Expand the following abbreviations ( 5 marks half marks each)
a) BCCI
b) KRCL
c) RITES
d) IRSSE
e) GNP
f) MFN
g) CCRS
h) FEMA
i) CD-ROM
j) IVRS
2. Name the following (5 marks each half marks each)
a) First Indian woman to win an Olympic medal
b) General manager, southern railway
c) Chairman railway board
d) Mixed doubles‟ champions of Australian open 2003
e) Venue of Olympics 2004
f) Currency of Bangladesh
g) Firs president of India
h) Batsman to score the fastest century in cricket world cup
i) The author of the column “with malice towards one and all”
j) Secretary of state USA
3. In which cities would you find the following ( 5 marks half marks each)
a) Leaning Tower
b) Statue Of Liberty
c) Lotus Temple
d) Hutatma Chowk
e) Louvers Museum
f) „Petronas‟ Towers
g) Gate Way Of India
h) Popes‟ Residence
i) Vidhan Soudha
j) Wimbledon
4. Match the following ( 3 marks half mark each)
1. rugby a. castle
2. golf b. pole position
3. motor racing c. deuce
4. chess d. little slam
5. tennis e. eagle
6. contract bridge f. touch down
5. Name the authors of the following books ( 2 marks half mark each)
a) Interpreter Of Maladies
b) Discovery Of India
c) A Suitable Boy
d) Madhushala
6. What are the following ( 3 marks half mark each)

Page 27
 a) East coast railway head quarters
b) Rail coach factory
c) Diesel component works
d) Garden reach
e) Baroda house
f) IRIATT
ENGLISH LANGUAGE
8. USE THE FOLLOWING to bring out the difference in meaning ( 5 marks 1 mark each)
a) Bear and bare
b) Lose and loose
c) Break and brake
d) Severe and persevere
e) Genes and jeans
9. use the following in your own sentences ( 10 marks 1 mark each)
a) Suo moto
b) Fight shy of
c) De facto
d) Let sleeping dogs lie
e) Lingua franca
f) Take to heart
g) Ad infinitum
h) At the eleventh hour
i) Par excellence
j) Laughing stock
10. Write a para of not more than SIX sentences on ANY TWO of the following (10 marks 5 marks
each)
a) Child is the father of the man
b) There is many a slip between the cup and the lip
c) Brevity is the soul of wit
PART II GENERAL PRINCIPLES OF GOVERNMENT ACCOUNTING (50 marks)
11. Write briefly about the various funds now in operation in Indian railways (10)
12. Answer ANY TWO of the following (20 each)
a) Trace briefly the various stages from survey to completion report of a new line
b) Write short notes on ANY TWO of the following
1. appropriation accounts
2. misc advance revenue
3. productivity test
c) Distinguish between ANY TWO of the following
1. Operating ratio and PEI
2. TC and JV
3. Sundry earnings and miscellaneous earnings
PART III BOOKS & BUDGET (INCLUDING TRAFFIC BOOK) (50 MARKS)
13. What steps would you suggest to reduce cash handling by railway (10)
14. Answer ANY TWO of the following
a) How are the earnings apportioned between zonal railways? Is apportionment
necessary?
b) Distinguish between approximate and actual account current. Is it necessary to prepare
both?
c) What are the various components of traffic suspense? How can we control each of
them?

Page 28
 LDCE QUESTION PAPERS YEAR WISE 2003
PAPER II

SIX QUESTIONS ARE TO ANSWERED (TWO FROM PART I TWO FROM PART II AND TWO
FROM EITHER PART III A OR PART III B) (each question carries 25 marks)
Part I FINANCIAL JUSTIFICATION AND TRAFFIC COSTING ( 50 MARKS)
1. How are Suburban cost worked out in the railway? Is the methodology adequate?
2. write short notes on ANY THREE of the following
a. urgency certificate
b. debits under demand no 9
c. material modification
d. wagon turn round
3. if the route between Madurai and Tutucorin is to electrified how will you work out the justification?
What are the major data required?
PART II MANAGEMENT ACCOUNTING (50 MARKS)
4. What are the various sources of non-traditional earnings that have been and can be exploited by
railways? Comment on the success or failure of the efforts to Southern Railway in this area in 2001-
02 and 2002-03
5. What is ratio analysis? Discuss any two major ratios used in railways vis-à-vis companies
6. Discuss the use of computers in railway financial management. What are the areas that should be
covered in computerised financial management information system?

ANSWER ANY TWO out of questions 7, 8 and 9 or ANY TWO out of questions 0,11 and 12 (25
each)
PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHEMENT ( 50 MARKS)
7. Introduction of PRS, ARTS machines and other modernisations hve led to newer types of frauds.
What steps can be taken by traffic accounts office and TIAs to detect these frauds? Illustrate your
answer with at least two types of frauds
8. Write shot notes on ANT THREE of the following
a) LPC
b) Combined/joint train report
c) NTKM
d) Classification of commodities
e) Leave not due
9. How would you check the following proposals?
a. station to station rate for moving sponge iron
b. proposal under volume discount scheme
c. opening of a halt station

PART III B WORKSHOP &STORES AND GENERAL EXPENDITURE (50 marks)

10 a. explain the concept of part estimates
b. is there any need for accounts office to vet tender schedule in works tenders? Write in
detail bringing out Board‟s orders on the subject
11. Write short notes on ANY THREE of the following
a) Turnover ratio
b) Letter of credit
c) Basic schedule of rates
d) Material at site accounts
12 how are POH debits settled between two zonal railways? What are the reasons or wide variation
in POH costs in different workshops and what can be done to bring about uniformity?

Page 29
 LDCE QUESTION PAPERS YEAR WISE 2007
SOUTHERN RAILWAY
14TH FEBRUARY 2007
PAPER I
GENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES
OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE
RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A & B. Both sections have to be answered section A
carries 50 marks and section B carries 100 marks
SECTION A (MAX MARKS-50)
1. write a short essay on any of the following (10 marks)
a. If there is poverty anywhere, it affects prosperity every where.
b. Effect of information technology on employment – is it positive or negative?
c. Raj Bhasha policy implementation on IR
2. Expand the following abbreviations ( 5 marks – 0.5 marks)
a. GDP b. CDROM c. RVNL d.GPS e. LIBOR f. PSLV g. GSLV h. SEBI i. BOLT j. ASEAN
3. Find the difference in meaning and usage of the following pairs of words( 5 marks)
a. effluent & affluent b. hallmark & bench mark c. jeans & genes d. affect & effect e. interpret &
interrupt
4. why have these persons been in the news ( 5 marks)
a. Dr Raja J Cheeliah b. Nawjot Singh Siddhu c. Wangari Maathai d. Mohammed Ynus e. Shane
Warne
5. give the name of the authors of these books (5 marks)
a. Search in Secret India b. Raja Tarangini c. The World is flat d. Ignited Minds e. Savitri
6. where are the following situated ( 3 marks 0.5 marks )
a. Buland Darwaza b. Hawa Mahal c. RDSO d. Petronas Towers e. Rolland Garros Ground f. Wax
Museum of Madam Tussaud
7. Match the following ( 2 marks 0.5 marks)

Uber cup Cricket

China man Tennis
Check mate Badminton
Deuce chess
8. write a paragraph on any two of the following ( 4 marks each)
a. Dedicated Freight Corridor b. Ombudsman c. GM Crops d. Garib Rath
9. use the following in sentences of your own ( 6 marks 1 ½ marks each)
a. ultra wires b. de-novo c. suo-moto d. inter-alia
10. use the following idioms In your own sentences ( 5 marks)
a. bite the dust b. strike a balance c. in the same breath d. cast the first stone e. pay through the
nose

Page 30
 SECTION B MAX MARKS 100
This section contains two parts A & B Attempt four questions taking any two from each
All questions carry equal marks
Part A
1. in a developing country like India on the threshold of the take-off, there is always competing
demands between remunerative tariffs and societal needs. This calls of new ways of resource rising
and innovative revenue measures. Describe the recent steps taken by IR in the regard. Do you have
any suggestion?

2. the public accounts committee of parliament has repeatedly criticised the increasing trend of
misclassifications ain accounts and mistakes in budgeting. Present an analysis of the causes for
these problems. Suggest appropriate steps to eliminate their recurrence
3. railways are at once a Govt dept and commercial enterprise. Discuss how the twin-need of Govt
and commercial accounting are satisfied in railway accounting process. Discuss the issue of dividend
payment to the central revenue in this context.
4. write shot notes on any two of the following :
a. Integrated Budget b. Zero Based Budgeting c. Performance Budgeting d. Corporate Plans

Part B
5. Raiwlay Board (FC) have recently appointed a committee to explore the reasons for the delay in
submission of monthly actual expenditure and also the variations between the approximates and the
actuals. From your angle, analyze the causes for these delays and variations. Can the approximate
be dispensed with the actuals submitted at an earlier date? Suggest steps for this.
6. There is a plethora of suspense heads in railway accounting. Discuss the need for continued
operation of these suspense heads, specifically focussing on one suspense head each from
Earnings, revenue expenditure and works expenditure
7. Write short notes on the following
a. demands payable b. exchequer control c. SRS F d. Annual Debt head Report
8. What is the accounting mechanism for recording the traffic earnings of a railway under various
heads and their progressive realisation? Also describe the procedure for the apportionment of traffic
earnings amongst railways

ANSWER ANY TWO out of questions 9 to 12 or ANY TWO out of questions 13 to 16 (25 each)
PART III A TRAFFIC ACCOUNTS STATISTICS AND ESTABLISHMENT ( 50 MARKS)
9. do you agree with the statement the magnitude of outstanding under traffic suspense reflects the
efficiency of traffic accounts office? Discuss with your suggestions to bring it to the optimal levels.
10. a. what are the various types of statistical information generated from a goods invoice? Explain
in detail how any three of them are calculated.
b. what is the reason for the continued difference between accounts office figures and statistical
figures in monthly earnings?
11. Write short notes on
a. leave not due b. recent changes in the haulage charges of postal traffic c. scale check register d.
combine train reports
12. Give significance of the following statistical results
a. wagon kilometres per wagon per day b. net tonne kilo meters c. occupation ratio d. net tonne kilo
meters per engine hour
Part III B WORKSHOP AND STORES ACCOUNTS AND GENERAL EXPENDITURE
13. Elucidate
a. what are the constituent elements of workshop manufacturing suspense?

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 b. the objective and procedure for job costing in a railway workshop. How would you take make or
buy decision based on cost data?
14. write short notes on
a. VED b.repeat order c. stores exception reports d. transfer pricing
15. a. describe the various techniques used for reducing the material cost through various stages in
the purchase,storage, issue and disposal
b. how is inventory turn over ratio calculated? Can it be termed as a reliable index of inventory
management
16. discuss the management information system with special reference to material management.
Explain how the system helps the management in decision making.

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 LDCE QUESTION PAPERS YEAR WISE
SOUTHERN RAILWAY
15TH FEBRUARY 2007
PAPER II
TOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II
AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS CARRY EQUAL MARKS

PART I
FINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50)

1. Describe the steps/stages involved in preparing a project report for new line project, predominantly
for carrying iron ore. How is the project-appraisal and sensitivity analysis done for assessing the
viability of the project? Assume your own data

2. Answer the following

a. there is a section of opinion which holds that cross-subsidisation in fares between passenger and
goods in railways should be abandoned and the fare structure should align costs with tariff. Does the
present traffic costing system provide adequate and reliable data to discuss the opinion?

b. discuss the methodologies of costing EMU services

3. Discuss any three of the following in brief

a. social cost benefit analysis b. specific fuel consumption c. apportionment of joint costs d. green
book e. two packet system of tendering f. risk and cost tender

4. Railways need alternative sources for plan expenditure. Discuss the schemes like BOLT, BOT and
projects under PPP in furthering this purpose.

PART II MANAGEMENT ACCOUNTING ( Max marks 50)

5. Explain the concept and utility of financial ratio analysis. Discuss the use of at least four ratios to
assess the comparative performance of a railway in different periods as well as with other railways

6.
a. discuss cost volume-profit analysis . Describe the utility of break-even analysis for profit planning,
continue or drop a product, make or buy decisions etc
b. zenith company manufactures a special cement which is sold in bags of 20 kgs its financial data is
given below
Selling price per bag: Rs. 30.00
Variable cost per bag: Rs 16.00
Fixed cost : Rs 100000.00
Quantity : 3000 bags
Calculate the following
a. Break even quantity
b. Assume 10 % increase in fixed cost and calculate the new break even point
c. Assume 50 % increase in fixed cost and calculate the new break even point
d. Assume increase in variable cost to Rs 20 per bag and calculate the new break even point
7. write short notes on any three of the following
a. variance analysis b. fund flow analysis c. AFRES d. PERT
8. what is meant by Product Life Cycle Costing? Also explain the purpose of the same. What step
you would recommend to reduce the life cycle cost in a railway production unit?

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 LDCE QUESTION PAPERS YEAR WISE
SOUTHERN RAILWAY
11TH JUNE 2008
PAPER I

GENERAL KNOWLEDGE & ENGLISH, OFFICIAL LANGUAGE POLICY: GENERAL PRINCIPLES

OF GOVERNMENT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE
RAILWAYS. BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

Important this paper contains two sections – A B & C both sections have to be answered section A
carries 50 marks and section B carries 100 marks
SECTION A (MAX MARKS-50)
1. Write short notes on any two of the following (10 marks)
a) Narmada Bachao
b) VAT
c) Organ Transplant
d) Right to Information Act
2. Expand the following abbreviations ( 5 marks – ½ marks each)
a) LPG
b)CAT
c)PAC
d)SPV
e)ONGC
f) UPSC
g)SPCA
h) PERT
g) IMF
h) IRCTC
3. Explain the concept of Raj Bhasha how it is implemented in your office (Please restrict your note to
250 words) 5 marks
4. Name the authors of the following books ( 5 marks)
a) God of Small Things
b) Malgudi Days
c) As You Like It
D) My Experiments With Truth
E) Arthashastra
F) Who Moved My Cheese
G) Anand Math
H) The Monk Who Sold His Ferrari
I) Discovery of India
J) Harry Potter and Order Of Phoenix
5. Fill in the blanks (5 marks)
a) Veni ______ vicci
b) A Stitch in time _____________ ____________
c) Ignorance is _____________
d) Rise and Fall of _________ __________
e) Few and ________ between
f) I came, I saw and I __________
g) Jai Jawan Jai ____________

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 h) A thing of ________ is a joy forever
i) if they don‟t have bread let them ear ____________
j) a ___________ measures earthquake

6. Briefly explain the difference between the following (10 marks)

a) Fundamental rights and directive principles
b) bonafide and malafide
c) BOLT & BOT
d) Limited tender an d open tender
e) Concurrence and sanction
7. The following personalities have been newsworthy. Briefly state the reason ( 10 marks)
a) E Sreedharan
b) INDIRA Nooyi
c) Barack Obama
d) J K Rowling
e) Sunita Williams
f) Kiran Mazumdar Shaw
g) Dalai Lama
h) Ratan Tata
i) Asif Ali Sardari
j) Hillary Clinton

SECTION B MAX MARKS 100

This section contains two parts A & B Attempt four questions taking any two from each
All questions carry equal marks of 25 each
1. What is the need for separate audit by representatives of comptroller and auditor general with
effective internal auditing within the system, can c& AG Audit can be dispensed with discuss in detail
giving pros and cons.
2. Write short notes on any five
a) Konkan Railway Corporation
b) Canons of Financial Propriety
c) Delegation of powers
d) reappropriations
e) Charged and voted expenditure
f) Railway Board
g) Dedicated freight corridor

3. In the present set up of Indian railways what are the different “FUNDS” In brief describe the nature
of each fund and their operation. Briefly discuss “CAPITAL FUNDS”

4. How is the “operating ratio” calculated? What the limitations of this ratio in assessing the financial
viability of the railway. What are your suggestions to bring down the operating ratio of Southern
Railway?

5. “Railway finances were separated fro general finances primarily to secure stability for civil
estimates by providing for an assured contribution from railway revenues and also to introduce
flexibility in the administration of railway finances, is this concept still relevant today. Discuss relative
advantages and disadvantages.

PART B

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1. What is the purpose of “accounts office balance sheet. Briefly indicate the nature of debit and
credit entries. What action would be taken for realisation of old outstanding?

2. Write short notes on any five

a) Zero based budgeting
b) Suspense heads
c) Apportionment of earnings
d) M & P Programme
e) Approximate account current
f) Railway Act
3. What is “appropriation accounts” annexure J is an index of the efficiency of the accounts
department. Discuss how we can on Southern Railway minimise the number of instances brought
under annexure J
4. In the existing systems, the closure of accounts take considerable time. Even then the booked
expenditure do not reflect the actual and correct picture. Critically examine the procedure of monthly,
quarterly and annual closing and give your suggestions for improving the existing system. Also
indicates whether approximate account current should continue
5. “Traditional Budgeting is functionally oriented and accounting oriented but not result oriented. Zero
based budgeting is an improvement over traditional budgeting” dicusss this statement in detail in the
context Indian railways and also explain how zero based budget can be applied for revenue budget
(i.e. working expenses).

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 LDCE QUESTION PAPERS YEAR WISE
SOUTHERN RAILWAY
12TH JUNE 2008
PAPER II
TOTAL SIX QUESTIONS TO BE ANSWERED – TWO FROM PART I AND TWO FROM PART II
AND TWO FROM EITHER PART III A OR III B ALL QUESTIONS CARRY EQUAL MARKS

PART I
FINANCIAL JUSTIFICATION FOR EXPENDITURE and TRAFFIC COSTING (MAX MARKS 50)
ATTEMPT ANY TWO OUT OF QUESTIONS 1 TO 4

1 In the context of railway operations, explain the cost of joint costs. What is the basis on which such
costs are apportioned among various services?
2. Write short notes on any five (maxi marks 5 each)
a.) Uneconomic Branch Lines
b.) Out of Turn Works
C) Special Limited Tenders
D) Throughput Enhanced Works
E) Terminal Charges
F) Orange Book and Pink Book
G) Specific Fuel Consumption

3. What is meant by productivity test and how it is applied to new projects? Do they serve the
purpose as intended?
4. Highlight the importance of Sensitivity Analysis in evaluating investment proposals. How would
you apply this to a proposal for a new line project?

PART II
MANAGEMENT ACCOUNTING (MAX MARKS 50) ANSWER ANY TWO QUESTIONS OUT OF
QUESTIONS 5 TO 8

5. Define Break Even Analysis how it is calculated and what are the uses of Break-Even Analysis as
a management tool
6. Write short notes on any five:
a) Management Audit
B) Profit Volume Ratio
C) Wagon Turn Around
D) Variance Analysis
E) Net Tonne Kilometres
F) Standard Costing
7. What is meant by financial ratios illustrate any two ratios can operating ratio be taken as a financial
ratio give reasons
8. Discuss in detail the concept of performance of budgeting and its application in railway working

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 PART III MAX MARKS 50
Important answer any two out of questions 9 to 12 or any two out of questions 13 to 16

PART III A
9. What is meant by apportionment of earnings how is it done in respect of goods earnings of through
traffic?
10. What is traffic suspense what are the items that constitute traffic suspense give your suggestions
to reduce traffic suspense on Southern Railway?
11. Write short notes on any five
a) Leave Not Due
B) Staff Benefit Fund
C) Foreign Service Contribution
D) Supernumerary Post
E) Ex Gratia Payment
F) Special Casual Leave
12. (a) Briefly describe the organisational set up of the statistical department
And
(b) Define the following
i. Engine Hours
ii. Gross Tonne Kilometres
iii. Route Kilometres
iv. Occupation Ratio

PART III B
WORKSHOP STORES ACCOUNTS AND GENERAL EXPENDITURE
13. discuss how the POH of a Locomotive is worked out and explain how direct and indirect costs are
taken into accounts
14. (a) what is stock adjustment accounts
(b) What are the various items adjusted through this account
C. Who is the competent authority to sanction the clearance of balance under this head
15. What are the essentials of a good inventory control system? Discuss ABC analysis and its
advantages
16. Write short notes on any five
a) Completion Estimates and Completion Reports
B) Risk and Cost
C) Non-Schedule Items
D) Final Location Survey
E) Fall Clause
f) EFT and ECS

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