Question Bank 1

Government Accounting Rules 1990

(Choose the most appropriate answer)
Time 30 minutes

1. Which of the following maintain a part of central government accounts?

a. PAOs of IAAD
b. PAOs of Ministry of Urban Affairs Govt. of India
c. DG Audit Central Kolkata
d. a and b above
e. all of the above

2. An officer working in a Ministry of the Government of India went on an

official tour to London. The expenses in London were borne by the Indian
Embassy in UK. How will the accounts be settled ?
a. The Ministry will pay by cheque/ bank draft to MEA
b. The Embassy in UK will advice RBI to debit the balances of the
Ministry by contra credit to MEA
c. The MEA will advice RBI to debit the balances of the Ministry by
contra credit to MEA
d. No adjustment is needed as foreign tours of GoI Ministry officials are
borne by the embassies serving the countries toured.
e. None of the above are correct

3. Transactions between Union Government Ministries and State

Governments are settled in
a. Using cash settlement procedure
b. Using RBI advice procedure
c. Using both a and b above
d. It is settled through issue of LOC
e. None of the above

4. Treasury rules of a state are issued under

 a. Article 283 of the Constitution
b. Article 150 of the Constitution
c. Article 185 of the Constitution
d. Article 387 of the Constitution
e. None of the above

5. Transactions of Union government happening in State Treasuries are

initially classified under the Major head
a. 8550
b. 8448
c. 8782
d. 8658
e. 8990

6. Which of the following shows the most appropriately the flow of accounts
of the state governments?
a. Treasury accounts- classified abstracts-consolidated abstract-detail
book- abstract of major head totals-monthly civil account
b. Treasury accounts- detail book-classified abstract-consolidated
abstract-abstract of major head totals-monthly civil accounts
c. Treasury accounts- detail book-classified abstract-abstract of major
head totals – consolidated abstract- monthly civil accounts
d. Treasury accounts- detail book- abstract of major head totals-
classified abstract-consolidated abstract-monthly civil accounts
e. All of above depending on which state government’s accounts are
being prepared

7. Which of the following is prepared from the figures in the detail book
a. Consolidated abstract of Debt, deposit and Remittance heads
b. Consolidated abstract of revenue and capital heads
c. Consolidated abstract of receipt heads
d. Consolidated abstract of capital heads
e. Consolidated abstract of capital receipt heads

8. Capital receipts are accounted for under

 a. A single major head
b. The same major as that where the related capital expenditure is
booked
c. Major heads beginning with the digit 4 or 5
d. Major head 8001
e. None of the above

9. The Controller General of Defence Accounts can open sub heads under the
major heads of accounts related to the Department of Defence
a. In consultation with DG Audit Defence Services
b. No consultation with any authority is needed
c. In consultation with the Defence Secretary
d. In consultation with the Finance Secretary

10. Who causes the reports of CAG on accounts to be laid before the
Legislature
a. The President
b. The Governor
c. The President, the Governor and the Administrator
d. The Secretary of the Legislative Assembly
e. None of the above.

11. Interest on loans given for agriculture are classified under

a. Receipt head meant for recording receipts from agriculture
b. Receipt head meant for recording receipts from Miscellaneous
General Services
c. Receipt head meant for recording receipts from other Economic
Services
d. None of the above
e. All or any of above depending on the circumstances

12. Functional classification means that the classification of expenditure in

accounts will have closer reference to the
a. Program for which the expenditure is done
b. The department that incurs the expenditure
 c. The object of the expenditure
d. a above
e. a and b above

13. Salary of staff deployed on construction of a new irrigation project are

debited to the
a. Revenue expenditure head of the irrigation department
b. Capital expenditure head under which the expenditure of the
irrigation project is being booked
c. Either a or b depending on circumstances
d. None of the above

14. When the Government spends money on a service for a private body such
that the entire cost is recovered from the private body then the recovered
cost is taken as
a. A receipt of the government
b. Reduction in expenditure initially incurred
c. Either of the above depending on circumstances
d. The expenditure remains booked under expenditure and the amount
collected from the private body is taken as a receipt
e. As the entire sum is to be recovered from the private body no effect
is given in the accounts.

15. If the government decides to give up a claim the value of the claim is
a. Recorded as a loss on the expenditure side
b. Not recorded as a loss on the expenditure side
c. Recorded as a reduction of receipt
d. None of the above

16.The unreconciled balances between the ledger and broadsheets pertaining

to Debt deposit and remittance heads in states can be written off subject to
a. Such differences have been continuing for over 5 years
b. The AG is satisfied that a dead end has been reached
c. Concurrence of state government has been obtained
d. Only a and b above
 e. Write-off is not allowed the differences have to be reconciled and
balances rectified

17.Proforma Accounts are likely to be required to be maintained in

a. Hospitals
b. Commercial Taxes Department
c. Police Department
d. Jails
e. Department of Revenue

18. The income tax recoveries made from railway staff salary bills is settled
through
a. Payment through cheque / draft
b. RBI advice procedure
c. Deposit by challan under relevant head of Central Account
d. None of above

19. The transactions relating to Debt are classified in

a. Only in one part of government accounts
b. In two parts of government accounts
c. Under two major heads of account only
d. None of the above

20. The annual accounts of the Government for a given financial year
a. Get closed on 31st March
b. Remain open even after 31st March
c. May remain open or be closed depending on whether all the receipts
and payments made on or before 31st March have been incorporated
into the accounts
d. B and C above
e. A and C above