‘The Kerala Account Code Vol.1 - 1 Noted Article & Description THE KERALA ACCOUNT CODE Vol. 1 The Kerala Account Code Vol. I describes the functions of the Comptroller and Auditor General of India in relation to the Govt. Accounts, This Code contains: Articles 1 to 85, Local Rulings, Annexure (A & B)and Appendices (I to IV) Chapter 8 ier onders [shud by Eunctions of the C&AG in Relation to Aceuntg’ YR nely mn he Article = 1 Intes code The C&AG's Powers Under the Constitution of India The Comptroller and Auditor General is the head of the Indian Audit & Accounts Dept. The Constitution of India safe guards the independence & freedom of The C&AG under the provision of the Article 148. ‘The C&AG is appointed by the President by warrant under his hand and seal. The Article 149 of the Constitution envisages an Act of Parliament to regulate the duties and powers of the C&AG * v_ The C&AG derives his powers and duties in relation to accounts and audit of the Union and the States from Article 149 and 150 “ The duties & powers of The C&AG in relation to Accounts & Audit are contained in the Controller & Auditor General's (Duties, Powers and Conditions of Service) act 1971 passed by Parliament under Article 149 of the Constitution. The Act came in to force with effect from 15.12. 1971 ¥ Under Article 150 of the constitution of India the accounts of the Union and State Govt. shall be kept in a ‘Form’ as the C&AG may prescribe with the approval of the president. Under Article 151 of the Constitution of India, The C&AG is required to submit annual audit report to the President/Governor to placed before Parliament/ Legislature. wy a v ws oS S Article - 2 eae The C&AG’s Powers Under the Initial and Subsidiary Account Rules ‘The Initial and Subsidiary Accounts Rules came in to force w.e.f: 01.04.1937. This relieved the C&AG the responsibility for keeping the Initial and Subsidiary Accounts of the following: \Y Initial accounts required to be kept in the Treasury | o/ Initial and Subsidiary Accounts required to be kept in any office/ Department. | W/ Accounts of stores and stock required to be kept in any office/ Department. | ee manufacturing and profit and loss accounts and balance sheets required to be kept in any office/ Department. anak 15 Jo S04wire eden Article - 3 . Form of Account / Under Article 150 of the constitution of India the accounts of the Union and State Govt. shall be kept ina ‘Form as the C&AG may prescribe with the approval of the-president. /¢ The word ‘Form’ has a comprehensive meaning that, the form of Head of Account and appropriate heads under which classes of transactions have to“ be entered. icle- 4 Accounting Officers For practical convenience the accounts relating to Defence, Railway, Post and Telegraphs and any other Department whose accounts are not kept by the C&AG are maintained by the departmental accounting authorities concerned. Y | Béilways - The financial commissioner Y Defense service - The financial advisor Y (Postal Service & Telecommunication _ - The Controller General of Accounts Article = 5 Appropriation Account Appropriation | Go aa\ Ao 299 + oaget whale Appropriation mean the assignment of funds to meet specified expenditure by the Legislature. Appropriation Bil), Appropriation Act ang/Appropyiation Accounts are the 3 stages in sequence of Appropriation. Perce Appropriation bill omer Appropriation bill is a proposal of the expected expenditure in the ensuing financial year for the various departments , presented by the Finance Minister before the Legislature for approval. co ¥ No money can be withdrawn from the Consolidated Fund until this bill is passed by the Legislature. Appropriation Act The Appropriation Bill is passed by the Legislature and approved by the Governor it becomes the Appropriation Act. cH Y Appropriation Act is the sole legal authority for withdrawn money from the Consolidated Fund. 7 Appropriation Account The accounts showing the expenditure incurred in a financial year based on the Appropriation Act are known as Appropriation Accounts. ¥ Appropriation Accounts are regarded as complimentary to the accounts of Annual Receipts and Expenditure (Finance Accounts) Y The instructions relating to the preparation and submission of Appropriation Accounis are include in The Audit Manual issued by The C&AG.; Used ve Bevo The Kerala Account Code Vol, I -1 Mode! Questions Chapter =1 Functions of the C&AG in Relation to Accounts Are functions of are described in The Kerala Account Code Vol. I a. Accountant General b. Treasuries c. The Comptroller and Auditor General d. Accountants 2Abe Head of the Indian Audit and Accounts Department is : a. The C & AG », Chartered Accountant ce. Accountant General d. None of these. 3: The Compteoller and Auditor General of India is appointed by a, The Chief Justice of Indi b. The President of India cc. The Vice-President of India d. The Prime Minister of India .- safeguards the independence and freedom of the CRAG. pac ay a. Prime Minister b. President of India ¢, Constitution of India d. Vice President of India vith SFomptroler and Auditor General of India exercise his duties and powers as per Article .... . of the Constitution of India ©. 212 6 Duties being performed by Comptroller and Auditor General of India are based on : a. Government of India Act, 1936 (Audit and Accounts order, 1936) b. CAG’s (DPC) Act, 1971 ©. Constitution of India d, Orders issued by the President of India 1¢ C&AG’s (DPC) Act, 1971 was passed by the Parliament under. . of the Constitution of India. a, Article 142 b. Article 149 c. Article 340 4, None of the above 8,Adnder Article 150 of the Constitution of India the accounts of the Union/State Government shall be kept on such a form. a. The State Government desires b. The Accountant General of the State desires ©. The State Legislation prescribes d. The President of India, after consultation with the CRAG wt © The Initial and Subsidiary Accounts Rules came in to force w.e.f: ‘ a, 01.04.1936 . 01.04.1937 ie ce. 01.04.1959 d. 01.04.1971 Whe functions of The Comptroller and Auditor General are described in: a. The Kerala Treasury Code b. The Kerala Account Code Vol. I c. Introduction to Indian Govt. Accounts &Audit d. The Constitution of India 1e 4a, 3b, Ae 54, 66/7 b (Sq Be Chay € (eean Clovtank a 149 b. 150, Casas 1s9'5t) a22 he introduction of any new major head as well as the abolition of or change of any of the existing heads shall require the approval of the : a, The finance Minister b. The Prime Minister c. The C & AG d. None of the above ya CAG is appointed by a, Parliament b. Prime Minister ¢. President of India . Chief Justice of India phe > 13. Appropriation Accounts should be regarded as complementary to the: gaa b, Revenue Accounts d. Annual Financial Statement a. Finance Accounts c. Administrative Accounts °° [4-The instruction relating to the preparation and submission of Appropriation Accounts are \ included in: a, The Kerala Account Code b. The Audit Manual cc. The Introduction to Indian Govt. Accounts and Audit 4. The Constitution of India on he primary record of all money transactions affecting the revenue of the State or Union s called: b. Primary Accounts ©. Subsidiary Accounts ere b, Initial Accounts d, Revenue Accounts {6-Accounts related to expenditure during a financial year for the appropriation of money “ from the Consolidated Fund is: a. Appropriation Accounts ©. Consolidated Accounts b. Contingent Accounts d, Financial Accounts 17.Appropriation Account is prepared by : uw a. Finance Department ©. Complroller and Auditor General b. Administrative Department 4d, Head of the Department \U8The Rules and Orders issued by the Kerala Govt, on matters in The Account Code fw incorpotated as: 3 a. Articles b. Local Rulings ~ c. Annexure A & B 4d. Appendices Ito IV id Bre: Att. 151 of the Constitution the CAG is required to submit annual reports containing the results of audit of accounts to the President/Governor/Lt. Governor to be placed before legislature. Such reports are known as: x a. Audit reports ane ». Administration reports c. Inspection reports d. None of these 28/The Audit Manual is issued by: a. The Parliament c. The President of India Answer Key le 2a 3.b I4bArtS — 15.b 4c 5.a 6b 7.b 8d 16.aArtS 17.¢Art.5 b. The Finance Dept. d. The CRAG 9b 1b Ie Ie 13a 18.b 19.2 20.d Art 5 Servicetime,Departmental study centre, Typm, Bipm, Nta. Phone: 0471-2400401The Kerala Account Code Vol.1 Noted Article & Description Chapter IT General Outlines of the System of Accounting Article - 7 Consolidated Fund ‘The Central Govt. and each the State Govt. have separate Consolidated Fund, In the case of Central Govt. it is called Consolidated Fund of India and in the case of State Govt. itis called the Consolidated Fund of the State. ¥ A\ll revenues received by the Govt,, Loans raised by the Govt. by issue of Treagury Bills, Ways & means advances, Moneys received by the Govt. in repayment of loans are credited in to this fund, oo Y The expenditure authorized by the appropriate Legislature is met from this fund. Public Account The Central Govt. and each the State Govt. have separate Public Account. In the case of Central Govt. it is called Public the Account of India and in the case of State Govt. it is called the Public Account of the State. Y Public Account means money which comes under the custody of the Govt. but which is not the real fund of the Govt. Y All moneys received by the Govt. , other than those go to the credit of the Consolidated Fund are credited to the Public Account. Article - 7A Contingency fund ‘The Central Govt, and each the State Govt. have separate Contingency Fund. In the case of Central Govt. it is called the Contingency fund of India and in the case of State Govt, itis called the Contingency fund of the State. Y Contingency fund is set apart from the Consolidated fund to meet unforeseen expenditure arising from events like natural calamities. Y The fund is placed at the disposal of the President/ Governor. Article- 8 Cash balances in Govt. Account Cash balances in the Consolidated fund, Contingency fund and Public Account are either held ina Treasury or kept with the bank.Article - 9 Goyt. Accounts with the Bank The Central Government and state Government have made separate agreements with the Reserve Bank India for the General banking business of these Governments. RBI or its agency bank keeps separate accounts of cash transactions Article - 10 fate & Central Govt. Accounts The Reserve Bank keeps two separate accounts, one for transaction of Central Government and other for State Government. All transactions which cannot be debited or credited directly to the account of Central Government with the Bank are taken into account of the state in the first instance and the monthly accounts received by the Accountant General of state shall transfer the amount due to Central Govt. through the Central Accounts Section Reserve Bank of India at Nagpur. Article - 13, \OtKier Govt. Transactions in State Treasuries All Receipts and payments made on behalf of Central Govt. or other State Govt. by a State Treasury shall be taken in the first instance against the cash balance of the State concerned. On receipt of monthly accounts from Treasury the Accountant General makes requisite adjustments through the Central Account Section of the Reserve Bank of India fone icle- 14 State Transactions in Central Treasuries State transactions arising in Central Treasuries are taken against the Central balance in the first instance and are subsequently adjusted by the Accountant General against the balance of the State concerned through the Central Accounts Section Reserve Bank of India. General Outline of system Account Article - 15 Initial Accounts of Receipt and payment All receipts and payment in India on behalf of Central and State Governments made at a Treasury the initial accounts of such receipts/payment are maintained at the Treasury. , Note: Receipts and payment of Railways, Defense, P&T, PWD, Forest, Harbour Engineering etc. the detailed accounts of such transactions are kept by the Departmental Officers concerned.of Lok atten -— pro pyc damtanebus cof Departmental Classified Abstracts & Consolidated Abstracts At the beginning of each month the Accountant General receives from treasuries monthly accounts on the transactions of previous month, Officers of civil departments who maintain initial accounts sent monthly accounts direct from their office to the Accountant General. From these accounts the Departmental Classified Abstracts are compiled by the Accountant General, Separate classified abstracts are maintained for each Vdepartment, From these classiig-abstacts separate Departmental Consolidated Abstracts showing the progreSstve total month by month are compiled Detail Book The transactions relating debt, deposit, advances ete in Treasury and Civil Departments are collected for the whole Circle/State from the month to month and entered in a Detail Book. From the figures in the detail book consolidated abstract of debt, deposits, advance, remittance suspense etc, are prepared. Accounts between different Account Circles Article - 16 Transactions in one account circle which are adjustable to the accounts of another circle are passed by the following accounting system. ange Account _ 2>9 horn bun Bei As| dao hom buh) do Civil Accounts Officers passed on-transactions of the Central Govt. which are adjustable in the book of other Accounts officers through Exchange Accounts. Book transactions arising in the central section of the accounts of a Civil Accounts Officer which are adjustable in the accounts of the State kept by another Account Officer are also passed on through Exchange Accounts. ‘Settlement Account Transactions initially taken against the balance of a state which are eventually adjustable against the balance of another state are passed on to the Accountant General of the latter state through the settlement accounts. V The transaction is effected by the“Accountant General of the former State through Central Accounts section Reserve Bank. Y The transactions being passed through the head ‘Adjusting Account between Central and state Government. Account Current Transactions of the Central and State Governments in the United Kingdom are passed on to India monthly through the Account Current. Account Current include the different classes of accounts mentioned in Article 16 as well as the accounts with Governments of other countries. gren My UK CanonArticle - 17 Annual finance Accounts Finance Account is an Annual account of receipt and expenditure prepared by the Accountant General as soon as March final accounts are closed. It is prepared in a form prescribed by the C&AG with approval of President. Axticle - 18 i‘ Combined Finance and revenue Account ‘The C&AG prepared a Ge of the accounts of the Central Government and all the State Govt. for the last preceding financial year, This financial statement is called Combined Finance and Revenue Account of Central and State Government. Y General Financial Statement gives a comparison of the receipt and expenditure of any activity or administration of several Govt. eral Financial Statement incorporating a summary Arficle - 19 foforma Accounts ~ ey «ee Operations of certain Departments of Governments sometimes include a undertaking of a commercial or quasi commercial character. The Government system of accounts being purely cash basis is unsuitable for such commercial Departments. These Departmental authorities maintained a proforma basis accounts outside the general accounts of Government. Y Proforma basis accounts includes Capital, Manufacturing, Trading, Profit and Loss Accounts. x ed icle - 20 ant He urnal and Ledger ~ oro) «GO OSS The accounts of Govt. are based on single entry system. The double entry system account is applied only in regard to the maintenance of a set of technical accounts called Journal and Ledger. The main purpose of the journal and ledger is to bring out by a scientific method the balance of accounts regard to which government acts as a Banker or remitter or borrower or lender.* 493 pv The Kerala Account Code Vol.I-2 ‘Mode! Questions Chapter —11 General outline of System of Accounting WA Public Account is a Fund into which a. All revenues are credited b. All public moneys other than those credited into Consolidated Fund ©. Ways and means advances are credited d. All borrowings are credited 2 Consolidated Fur! ofa Government include: Comrcepey— ¥ a. Revenue receipts and expenditure o— 1g 4-3 lee eae b. Capital receipts and expenditure AWS & A-T quences eot ©. Public Debt and Loans and Advances &, &—7 d. All the three above : 3-“The power to sanction expenditure from the Contingency Fund of a State is vested with: a. Chief Minister b, Finance Minister ¢, Finance Secretary d. Governor ‘The custodian of the Contingency Fund of a State is : a. The Chief Minister of the State b. ‘The Finance Minister of the State c. The Speaker of the Assembly d. The Governor of the State 5. The unforeseen expenditure of Government is made from: ‘a, Consolidated Fund b. Public Account ©. Contingency Fund 4. Public Fund G/ Contingency Fund ofthe States set up- under Arit...... ofthe Constitution of India a. 267 b. 276 ©. 249 4d. 266 J Banker of the Government of Kerala is: a, Reserve Bank of India b. State Bank of India c. State Bank of Travancore 4d. Central Bank of India © 3¢ Government of | have not so far entered into agreement with the Reserve Bank of India for conduct of their general banking business. a. Goa b. Himachal Pradesh ©. Sikkim 4. Jemmu and Kashmir 9 Pension in respect of a Defence Pensioner paid from a State treasury is initially accounted in the State accounts. a. False b. True c. Partly true d. None Wb, kel 2d nd, se, ba, 2a, 4d, 4b4 10, Which bank is transacting the business of Central and State Government as agent of RBL? a, Branches of RBI in each Sates b. State Bank of India c. All treasuries d. Non-banking treasuries Deon balances held in the Treasuries of the Central Government form part of the a. Consolidated Fund b. Public Account ¢. Contingency Fund d. All the above 12 fhe detailed! accounts ofthe receipts and payments of Department are not maintained in the treasury. a. Education b. Medical c. Public Works d. Government Secretariat 46°13, Certain departmental officers are authorized to withdraw sums in tump from the bank o> ” ou tor making payments. At where the initial accounts will be kept ? a. Atthe treasury b. At the Bank c. Atthe AG. d. At the departmental officers. 14/Certain departmental officers are authorized to withdraw sums in lump from the treasury for making payments. At where the initial accounts of payments will be kept ? a. Atthe treasury b. At the Bank ©. Atthe departmental officers d. Atthe A.G. /All monthly transactions of whatever nature connected with the receipts and W payments pertaining to cach department or major head of account is called. a. Monthly Accounts b. Combined Accounts c. Finance Accounts 4d. Departmental Classified Abstracts {16¢‘The accounts of ......... are not maintained by the Accountant General a, Defense —b. Railway. Stated. (a) & (b) Me insactions initially taken against the balance of a State which are eventually. Jose adjustable against the balance of another State are passed on to the A.G. of the latter State through: eo a. The Settlement Accounts oe b. The Exchange Accounts ©, The Account Circles d, The Account Current {8 Finance Accounts and Appropriation Accounts ofa State. prepared by a C&AG Peet b. Accountant General (Audit) ©. Accountant General (A&E) d. Finance Department \YAFinance Accounts of the Union Government is prepared by : a. CAG b, Controller General of Accounts ©. Accountant General Central Revenues d. Principal Pay and Accounts Officer Wat; Job, WA p1ac, (BAL tHe, ISA Lb 7H SC, (1b5 5 20, The Combined Finance and Revenue Accounts of the Union and State Governments are prepared by the a. Comptroller and Auditor General b. Chartered Accountant ©. Finance Department of concerned Govt. d. None of these feneral Financial Statement presents the transaction of Governments, Sa. States b. Union gee. Union Territory d. All the three above 22Comparison of the receipvexpenditure of any activity, of several Governments can be voy derived: a. Finance Accounts of the Union b. Finance Accounts of the States ©. General Financial Statement d, Proforma Accounts 23Froforma accounts are prepared by : 5 a, Civil Departments s a b. Commercial Departments /.e\ Fame Nene ealy ¢. P.W. Divisions rf 4d. Forest Divisions 24 Foforma accounts of certain departments are prepared and maintained by : a. Concemed departmental authorities b. Accountant General c. Finance Department 4. Director of Local Fund Audit 25/Proforma accounts are prepared for. a. Service Departments b. Government undertakings having commercial character c. All departments 4d, Major departments departments in Kerala 2% is a commercial department of the Government of Kerala a. State Water Transport Department b. Text Book Department ©. (a) and (b) above d. None A set of technical accounts, the purpose of it is to bring out by a scientific method of balances of accounts in regard to which Government acts as ........ Which is incorrect ? v SO a. Banker b. Remitter , 42% Pec. Borrower d. Middle Man a a ‘ te" fa 2s/ovual and Ledger for transactions of State Government is maintained by : ‘a. Accountant General (A&E) ye b. Accountant General (Audit) c. Finance Department d. None of the above doa, MA dacs 2b AH4 RSL 260,34 7L AIR€ hich is the system applied in regard to the maintenance of a set of technical accounts called Journal and Ledger ? a. Single entry system b. Double entry system c. Minus entry system 4d. Ledgering system 30. Which of the following is not true in respect of Government accounting system ? a. Single entry system b, Cash based system c. Invariably in double entry system d. Money to be given and received at the close of the financial year are not accounted. wer Key Lb Art 2d Art7 3.d Art TA SoD ARETA S.€ Art TA Ga ALTA Taare TA Sd AND 9. Note to Art. 10) 10,b Art. U1 1d Arts 12, ¢ Art5(0) 13, d Art13() H.¢ Artal5(«) 15.d Arts 16. Art. 150) 11a (Art. 16(4) 18.6 Arta7 19.b ArttT 20.4 Art18 21d Arta 22, Art 23. Artt9 24, a Artt9 28. b Art19 26. ¢ Art.19(LR) 27. d Art.20 28, Art.20 29. Art 20 30,¢ Art. 20-22 Servicetime, Departmental study centre, Typm, Bipm, Nta, Phone: 0471-2400401Uimed 2 ¢ cod The Kerala Account Code Vol,1 - 3 B D Noted Article & Description CHAPTER - m1 General Principles and Methods of Accounts Article - 21 vu Periods of Accounts vt V Periods of Accounts means a financial year running from 1s April to the following 31% march. 2 Cash basis Accounts ¥ Cash basis Accounts means account based on actual cash receipts and a disbursement during a financial year. Article - 23 Currency in which Accounts are kept ¥ The accounts of Government are kept in India shall be maintained in Indian Currency Article = 24 Main Division of Accounts The Govt. Accounts shall be kept in the following, three parts. Part I ~ Consolidated Fund Part I ~ Contingency Fund Part LIL ~ Public Account Part L- Consolidated Fund _{( Article ~ 266 (1) of the COT) The Consolidated Fund is the real fund of the govt. The Union Govt. and each State Govt. has separate Consolidated fund. The Consolidated Fund_have 2 Main Division. 1)Revenue 2)Capital, Public Debt, Loans etc. Revenue Consisting of: SS 1)Revenue Receipt Head % Revenue Receipt Head includes all tax or non tax revenue received by Govt. Y Revenue receipts are the main source of income of a Govt. Y Revenue receipt s are regular and recurring in nature 2)Revenue Expenditure Head Pear Z) All the expenditure which are incurred in connection with the day to day 60% 7 requirement and administration of Govt. like salaries, wages, office expenses (Qu! etc ree Capital Public Debt, Loans etc, Consisting of : 1)Capital Receipts Y Capital Receipts are Borrowed Fund or Sales proceeds of asset. Y Capital Receipts either create liabilities or reduce assets of the Govt. 2)Capital Expenditure ¥ Anexpenditure which result in the acquisition of a permanent asset. 5 5) sin) aw” Y Expenditure with the object of reducing recurring liabi em ge 3)Public Debts, Loans and Advances een ti bedDyprepristors Mek Cortenell Bccomty. \ ¥~Public debts means the total borrowings of a Govt. Vt includes Loans raised by Govt by issuing of Treasury Bill, ways and means advances. 7 Tt does not include Sn /ings, Provident Fund and State Insurance Fund. Note: The withdrawal, transfer & disbursement of money from the consolidated fund is regulated by laws made by the Parliament/Legislature. Part -I Contingency Fund_( Article ~267 of the COL) (SOs imerqnested Ga Y Contingency fund is set apart from the Consolidated Fund for mente) unforeseen expenditure. QR Ford eE — aor ¥ UsGfund is at the disposal of President/Governor_ . WG The cistodian in the Seczetary, Finance Department Cow king Pana jadds Othe expenditure incurred From contingency fund is to be recouped by Bcr\95~ obtaining supplementary grant with the concurrence of the Legislature. cone Part ublic Accounts ( Article - 266 (2) of the COL) i Y Public Accounts records the transactions, where the Government is merely. acting as a banker. Je transactions relating to Debt (other than those included in Part 1), tances and Suspense shall be recorded in Public a“ %_Bot payments out of Public Account the sanction of the Legislature is not required. acawe) Y There for these items are come under the purview of ‘unfunded Debit ie. Webt for which no separate funds are provided in the Budget. @ pq cree Note: List of sections/sectors/sub divisions under main divisions of accounts are given in Annexure-A (Page No.53) Article ~ 25 The Sector ¥ Sector indicate the grouping of various services of a Govt. such as General Services, Social and Cor ity Services, Economic Servi foo ce, mmunity 5, Economic Services etc. Lf Sectors are sub divided in’to major head of accoiints. \_Ahis is represented by Capital letters of English Alphabet A,B,C etc. Major Heads * ditioe Heads is the main unit of classification in Accounts. it corresponds to the functions of Govt. such as different services like Agriculture, Education, Medical ete. a ¥/fach major Head is allotted a code number which consists of 4 digit. —~ ‘(The first digit indicates the section to which the Major Head pertains.ie. Revenue Receipt Section, Revenue Expenditure Section ete, the next 3 digit indicates the functions of the Govt. ¥ Some times Major Head Iso divided into Sub Major Heads. Note; Atevised 4 digital code for Major Head has been introduced in 1987 ww (w. e. £. 14.1987)1+ Digits of Major Heads 0,1 23 Important Major Heads 0020 to 1999 2011 to 3999 4000 A011 to 5999 6001 to 6010 6011 to 7999 8000 8001 to 8999 Major Heads of Some Department Function Revenue Expenditure Expenditure Loans and meen ReceiptHead Revenue Capital Advance Secretariat 0052 2052 4052 6052 KPS.C 0051 2051 4051 6051 Medical and o210 210 4210 6210 Public Health | District 0053 2053 4053 6053 Administration \ Crop 0401 2401 4401 \ 6401 Husbandry \ Ss - Publi ~ Revenue Receipt - Revenue Expenditure - Capital Receipt - Capital Expenditure ~ Public Debt ~ Loans and Advances - Contingency Fund - Public Accounts - Revenue Receipt Heads - _ Revenue Expenditure Heads = Only one Capital Receipt Head Capital Expenditure Heads lebt Heads and Advances Heads ») - Only one Contingency Fund Head - Public Accounts Heads Note: From the above example, it is clear that the code numbers relating to the Major Heads in respect of the same function falling under different sections differ from one another by 2000 in the ascending order. Article ~ 26 Five Tier System of Classification The five tier arrangements of the classification in Govt. Accounts are: 1) Sector ~ Various service of Govt. 2)Major Heads —- Functions of aService Gyan h¥ 3) Minor Heads —_~ Programmes under a function 4) Sub Heads ~ Schemes or activities under a Programme 5) Detailed Heads ~ Nature of expenditure of Schemes or activitiesJovem Seaver Corea siton- TE Example « ieee Head of Account: 2210 - 06 - 101 - 80 - 01|Hee!" eNen 3 2210 -Major Head Medicaf & Public Health (T-~s ©) 06 - Sub Major Head - Public Health 101 - Minor Head _- Prevention and Control of Diseases 80 - Sub Head ~ Development of Primary Health Centre 01 - Detailed Head - Salaries, Wages, Office Expenses ete, Minor Head ¥_ Minor Head is a Programme Head. ~ It indicates the programmes undertaken to achieve the objectives of the functions represented by Major Head Y_ Minor Head consists of 3 digit Sub Head 7 Sub Head is represent a Scheme/ Activity that comes under a programme. Y Itconsists of 2 digit. Detailed Head Detailed Head is the 5' and last tier of classification in accounts. VAt represent the object of classification Y The Detailed Heads are primarily meant for itemised expenditure and indicate the nature of expenditure on a Scheme/ Activity like salary, wages, office expenses, etc. ot Y Detailed Heads constitute the primary units of appropriation for the purpose ™ of the demands for grants of Govt. Note: A list of standard detailed heads are given in Annexure-B (Page No.56) Article - 27 Introduction of new Heads of Accounts Y The introduction of a new head, as well as the abolition or change of any “existing heads, shall require the approval of the C/AG, who will obtain the approval of the president. | ¥ The Accountant General shall have discretion to open a new detailed head ~~ where absolutely necessary. Article ~ 28 Charged Expenditure v the estimates of charged expenditure shall not be submitted to the vote of Legislature. ¥ That means changed expenditure does not require the approval of Legislature, Voted Expenditure + The estimates of voted expenditure shall be submitted in the form of ‘Demands for grants to the LegislatureArticle = 29 Classification of Transaction ¥/ The accounts of the union and of the states shall be kept in such a ‘form’ as ~ the C/AG may with the approval of the president prescribe (Under the Art 150 of CON) Article = 30 Principle of Classification v e classification of Govt transactions in govt accounts shall have closer o reference to the function, programme, and activity of the govt, rather than the Department in which the expenditure occurs. 1 Bipenditre incurred by PWD on the construction of a Hospital shall be debited under the Major Head of Medical and Public health. Article - 30 A Capital Expenditure and Revenue Expenditure Capital Expenditure = ae , : ¥_ Expenditure incurred with the object of increasing concrete assts of a material and permanent character. ¥_ Expenditure incurred for reducing recurring liabilities ¥ It is Capital Expenditure inherent in the definition of capital expenditure that ~ the asset produced should belong to the authority incurring the expenditure, ¥ Capital expenditure should bear all changes for the first construction and equipment of a project as well as charges for intermediate maintenance of the work while not opened for service. (/ Expenditure for future genuine additions and improvements of buildings. Revenue Expenditure a _/ Govt. grand in aid to Local Bodies (even though) it has been invested to (by) asset creation by local body. o¢_/Expenditure on a temporary asset. Y Allsubsequent charges for maintenance and all working expenses for the up Keep of a project. / Expenditure for replacement of wastages and depreciation of the asset. Article ~ 31 Pay and Allowance he Pay and Allowance of Govt. employees - shall be classified in accounts as part of the scheme or activity or organisation under a programme to which the service of the Govt servant relates. & The transit Pay and Allowance of a Govt. Servant - Debited to the office to which he is proceeding(New Office) Je transit Pay and Allowances of offices of the Defence/Railway to Civil Department or vice versa debited to the borrowing Department. Note:- Washing Allowance paid to Class [V Government Servants shall be classified under salaries.Article ~ 32 Travelling Allowances w An Officer of a Local Fund when Travelling in the execution of Govt. duty TA Debited to Govt. Account ¥/An Officer of a Government when travelling on duty connected with Local © Eund - TA Debited to the Local Fund Account. Y/State Government Officers appointed as members of committee set up by the “Government of India =TA given as per Central Government rate. ate Government Officers attend’ meeting of Statutory Organisation, Corporate Bodies, Industrial and commercial under takings ete - TA given According, to the Rules of Government. Article - 33 Expenditure an Public Works wv AKonstruction of a Government buildings for administrative and office purpose - Accounted for under the major head 2059 Public works or 4059 capital outlay on public works. Y Eg:- DMO Office, DEO Office, Court ete. ¥/ Aonatruction of buildings for functional purpose ~ Accounted for under the relevant major Head closely connected with the function. ¥ Eg: Hospital, School, College, Jail ete, ¥ Xxpenditure on the maintenance and Repairs of buildings for administrative or office or functioned purpose - Under the major head_ public works. 7/ Expenditure on Government residential buildings- Under the major head of housing. Axpenditure as roads and bridges - Under the major head Road and bridges 3 Local Rul Rent a recovered on account at buildings in charge of a departments (other than the public works Department) should be treated as departmental receipt and not as receipts of the public works department. Under Art Y Rent recovered from a Principal of a College for occupying Government Quarters - credited under 2202 ¥ Rent paid by Government for place occupying of a PHC debited - 2210 Medical Public Health, ¥ /The rent of buildings hired for use as residence of a Government Servant of a 1” Civil department should be debited to the Department which hired the 3eneral Education. buildings. Aauildings not belongings to the public works Department is hired by another Department for public purpose, the rent should be paid by the Department concerned.Chapter - IV DIRECTIONS REGULATING INTER-DEPARTMENTAL TRANSFERS ayment shall be supplies toa non Gi d when a Department renders service or makes fernment body or Institution. VY Relief in respect of payment for services givén should be treated as a grant in Aid. Ree eee Article -59 Inter Departmental Adjustments ton the purpose of inter departmental payments, the department of a Government shall be divided into two. \Dsetiee Department For carrying out the idea of Government, Eg. Administration of Justice, Police, Education, Public Health ete Y Are necessary to the general conduct of the business of Government. Eg. Printing, Stationery ete. Desinmerciat Department ‘These are maintained mainly for the purpose of rendering services or providing supplies on payment. Y They perform functions which are not necessarily Governmental. Y Eg: PWD Engineering Workshop, The Tax Book Department, Model Coir Factory etc. Article -59° & ° Charges against another department i WA service department shall not make charges against another department for services or supplies which fall within the class of duties for which the former department is constituted. When any land or building is transferred from one Service Department to another under the Kerala Government the transfer should be made free of charges. Article - 6 ¥ X commercial department or undertaking shall ordinarily charge and be charged for any supplies and services made by other departments. Article - 62 aoe one Dept makes payment or renders service as an agent of another Dept of the same Govt. the latter may be debited with the expenditure incurred in this behalf . Local ruling to Art 67 ¥ Hees and duties liveable by law should be paid by Govt. Departments in the same way by private individuals.CHAPTER -v ECOVERIES OF EXPENDITURE IN ACCOUNTS EXHIBITION Article -73 Recoveries from Private persons or Bodies and Govt outside India Recoveries from private persons or bodies should, as a general rule, be treated as revenue and not as cleduction from expenditure. CHAPTER - Vt EXHIBITION OF LOSSES IN GOVERNMENT ACCOUNTS Article - 80 Adjustment of Losses \_Y Ifa claim be relinquished, the value of the claim shall not be recorded on the expenditure side as a specific loss ff money due to Government has actually reached a Government servant and is then embezzled, stolen or lost, even though it may not have reached the treasury it should be brought as a receipt and then shown on the expenditure side as a loss. Article - 82(Note 1) Loss of Cash ¥ losses or deficiencies should be recorded under separate heads in the accounts. The acceptance of counterfeit coins or notes shall be regarded as a loss of cash Localruling 1 to Art.82 Y A loss of cash which is written off should be debited as a Contingent charge of the department concerned eee; Uiwad 12. = 7 Bepy. The Kerala Account Code Vol,I-3 Model Questions f Chapter — II 4 General Principles and method of _ Accounts ash basis of accounts means: , a. Cash due is not reckoned ney b, Cash acerual is not reckoned eon)! ¢. All transactions in cash alone are reckoned. — d. Actual cash receipts and disbursements during a financial year as distinet from amounts due to or by Government. Government accounts represent the actual cash receipts/disbursements: pa a. True b, False AP c. Mostly true 4. Confusing ¥ 3 The Accounts of Government kept in India shall be maintained in a. Sterling b. Dollars ¢. Indian Currency d. Euro 4/Government accounts are kept in a. One part b. Two parts. ©. Three parts d. Four parts 5, Government money is not kept in: a. Consolidated Fund b. Contingency Fund ©. Concurrent Account d. Public Account 6. Government accounts shalll be kept in three parts viz. Consolidated Fund, ~ Contingency Fund and a. Pro forma Account b. Capital Account c. Public Account / d. Appropriation Account y . form a part of Government accounts a. Consolidated Fund b. Contingency Fund ©. Public Account d. All the three above | 8)/Which ofthe following does not come under the main division of Government accounts ? a. Consolidated Fund b. Contingency Fund ©. Sinking Fund d. Public Account 9 Inthe Government accounts, Part lof the Accounts is called a. Consolidated Fund . Capital Account ©. Contingency Fund d. Public Account 19One division of Consolidated fund is Capital. The other is : a, Revenue —_b. Loans c. Debts. d. Grants 11 Capital expenditure is usually met from : a, Revenue receipts b. Reserved fund ¢, Sinking funds d. Borrowed funds Lh, RO, Be Hey BC, bes Ph CMa, Lom, [eb8 Give an idea of the debt position of the Government a. Public Account ~~ b, Public Debt c. Loans and Advances d. None of the above {13The transactions relating to loans raised by the Government are accounted under a. Loans and Advances’ ——_—b, Capital Account ©. Public Debt d, Contingency Fund {n the Government Accounts the transactions relating to Deposits, Advances, Remittances and Suspense heads shall be recorded in a. Consolidated Fund b, Contingency Fund c. Public Account d. Appropriation Account he tax revenue are credited in:- a. Contingency Fund c. Public Account 4. Consolidated Fund oF Ue toveme receipts of a Government5 comprises of : a, Tax only b, Non-tax only c. Grants-in-aid d. All the above 7Aetters of English alphabet denote: a. Major Head b, Sectors c. Minor head d. Sub-Major Head [8 fhe Major Head of Revenue Expenditure are : a, 0001-1999 b, 2011-3999 ©. 6001-6010 d. 4210-4999 19, Major he head for accounting capital expenditure starts with digit: bs e4 d. b&e 7 20/Capital major head corresponding to 2210 is: a. 6210 b. 4210 3210 4.7210 >» 24 b. Treasury Savings Bank Account Subscription to General Provident Fund is accounted under: ¢ Verte Rec ees, a, Revenue Receipts b. Capital Receipts ¢. Public Account d. None of the above ® @ercutwe and allied services fall under sector: ‘a, General Services b, Social and Community Services 23, , Economic Services . Grants in-aid and Contributions jrants-in-aid received from Central Government is credited under : a. Public Debt b. Revenue Receipts c. Capital Receipts 4, Suspense Account 24 Interest payments are classified as : a. Revenue Expenditure b, Capital Expenditure ©. Public Debt d. None 25Suspense Account is classified und a. Consolidated Fund » Contingency Fund ©. Public Account d. Others ane ee apnea by Ber the 15d) Ud, (os (Bb, (AL, eb tae aS, AADAC wo9 Y a “Exchange Accounts’ are accounted under sector a. Reserve Funds b. Deposits and Advances ©. Suspense and Miscellaneous d. Remittances “O Defense Service fall under sectors: a. General Services b, Social and Community Services ©. Economic Services 4d. Public Debt 28,/The main unit of classification in Government accounts is a, The major head b. The detailed head ©. The sub-head 4d. The Minor head 29, Sub head corresponds to : a. Programme b. Function ©. Scheme d. Object 30. Which head of account is related to functions of Government ? a. Detailed Head b. Major Head ¢. Minor head 4d. None of the above 4 Agriculture is classified under which head of account ? ~ “a. Detailed head b. Minor head ©. Major head 4d. Sub. Major head 33m the classification of accounts a scheme or activity is represented by: a. Major Head b. Minor Head ©. Sub Head d. Detailed Head 3K. lenotes function of the Department a. Major Head b. Sub-Major Head c. Minor Head d. Sub-Head . Denotes the scheme Fe Sub Head 'b, Major Head c. Minor Head d, Detailed head 35¢Primary units of appropriation for the purpose of the demands for grants of Government is the : a. Major Head b. Minor Head c. Sub-major Head d. Detailed Head othe fifth and the last tier of classification, which constitutes the object classification a, Sub-major Head b. Sub-minor Head ©. Detailed Head d. Minor Head ‘he main unit of classification of account is : a. Minor Head b. Sub Head ©. Detailed Head d. Major Head Eyre ‘expenditure for legal services is accounted under : a. Office Expenses b. Professional and Special Services c. Hospitality Expenses d. Salaries a, yb sd ybe, 9747 REA aQap Aha aac Lob p NE, WE / BBA BAA POL EEE SeL Loelo The expenditure for refreshments served in interdepartmental meetings, conference “Fac is recorded under a. Hospitality Expenses b. Office Expenses ©. Professional Charges 4, Salaries ~/ @ Obtice Expenses represent a... head. a. Object Head ’b. Minor Head c. Detailed Head d. None of the above “® Charges for remuneration to examiners is accounted under: a. Office Expenses b. Salaries ©. Professional Charges d. Other charges D&A we a. Salaries b, Travel Expenses Ro c. Permanent Travel Expenses d, Office Expenses §3-Salaties represent a: a. Object Head b, Detailed head c. Minor Head . None of the above \4AAntroduetion of any new major head or minor head and abolition or change of nomenclature of any one of the existing heads needs the approval of the : a. President of India b. Finance Department of the State ¢. Comptroller and Auditor General, who will obtain the approval of the President of India where necessary a d\eyor" d. Accountant General of the State pent AS 454ovss++++s Shall have discretion to open any detailed head when absolutely necessary: a, Finance Department b, Head of Department c. Administrative Depts. D. Accountant General 46, Same sub head cannot be opened under different minor heads: 4 "a, True b. False , Partially true d. None eb ie .+. expenditure is subject to vote of Legislature a. Charged —b. Voted ec, Plan 4d. Non plan 7 @Fapenditre charged upon. Is not to be voted by the Legislature a. MLA Fund b. MP. Fund ¢. Consolidated Fund d. Contingency Fund Aovveveee expenditure is incurred with the object of either increasing concrete assets or reducing recurring liabilities. a. Revenue . Loans and advances ©. Capital 4. None sp/xpenditure of Government by way of Grants-in-aid to local bodies i o expenditure a. Capital b. Revenue. Advances d. Deposits co, Asad, hee) 4) AYR Zab, Arty AiG, AR adh 1 1 / 1 eyy i Ore assets produced by incurring expenditure should belong to the authority incurring the expenditure is called "a. Capital expenditure b. Borrowed expenditure ©. Revenue expenditure d. Recurring expenditure Sp Expenditure on a temporary asset is... . Expenditure a. Revenue b. Capital ©. Public Debt d. Deposits and Advances S3Expenditure ‘ona temporary asset cannot ordinarily be considered as expenditure of. a. A Capital nature b. A revenue nature c. A capital or revenue natured. A Temporary nature 54-Charges for interest during the process of construction of a project are temporarily met from: a. Capital account b, Revenue account cc. Suspense account d. Public Account 33) Writing back of capitalized interest after the project commissioned is: a. Not permissible b. Compulsory c. Tobe done after a prescribed period d. Permissible. 56 Mashing allowance paid to Class IV Government employees shall be classified under a, Wages b, Honorarium ©. Salaries d. Overtime allowance ‘AEE. of a Government servant shall be debited to : a, Same head as his pay b. Different head from his pay c. Any account of Govt. d. None 58(Aravel expenseslof a Government servant for travel on duty connected with an outside body is debitable to: ‘Same head as pay b. The fund of the outside body c. Office expenses d. None of the above Cys. of an officer paid from a Local Fund may, when traveling in the execution of Government duty, be paid and charged a. Local Fund b. General Revenues c. Borrowed Fund d. Suspense Account A. of an officer paid from General Revenues while traveling on duty connected with Local Fund, may be charged to : a, Local Fund b. General Revenue Ww . Common Fund d. Suspense Account er Sy 3%61/fheT.A. and D.A. paid to an officer of State Government appointed as member of a SF) Committee or Commission set up by the Central Government is borne by the: os a. State Government b. Government Officer % e c. Central Government d. Both State and Central Siar TAA, S34 Sha, SH%/ SEC Fla 64% Sth Goa; WO~ 12 ey Officer of Government required to attend meetings in connection with the affairs 6f statutory organizations, corporate bodies, shall claim TA and DA according to the ‘TA rules of Government applicable to: a. Organization /Corporate bodies _b. The Officer ©. Local Fund d. None of the above 63. Expenditure on the construction of a building for administrative purposes of Government is debited under: Eee erect a. 2059 Public Works b, 4059 Capital Outlay on Public Works ¢. 2012 - Governor d. 2011 State Le Os penditure on the maintenance and repairs of all Government non-residential dings is debited under: a. 2059 Public Works b. 4059 Capital Outlay on Public Works ©. 2216 Housing 4. 4216 Capital Outlay on Housing ‘penditure on Government residential buildings shall be accounted for under the ‘major head a. 283 Housing b. 483 Capital Outlay on Housing ¢. 283 Housing or 483 Capital Outlay on Housing 4. 2216 Housing or 4216 Capital Outlay on Housing £66 The rent recovered from a Principal of college for oecupying Government quarters is credited under: eli a. 2403 Animal Husbandry , 2059 Publie Works z é ©. 2202 General Education 4. 0216 Housing oF “£67. Rent paid by Government for occupation of an Animal Husbandry Unit Office is 2 é debited under: @ ¥ = a, 2403 Animal Husbandry qo eso b. 4403 Capital Outlay on Animal Husbandry gos ©. 2059 Public Works 3 d. 2216 Housing q 68, Rent received by Government for a building owned by Education Department is credited under: a. 4202 Edueation Sports, Art and Culture b. 2059 Public Works ¢. 0216 Housing 4. 2216 Housing 69. Rent paid by Government for occupation of a Primary Health Centre is debited under: a, 2059 Public Works b. 2216 Housing ©. 2210 Medical Public Health d. 2210 Capital Outlay on Medical & Public Health tab, grb (bhe G54, bb Gia bia breB Gop espendivue ‘on petty repairs connected with a building which is under admi control and within the limit of a Civil Department, it should be charged as the Civil Department. : a, Capital expenditure b, Revenue expenditure c. Contingent expenditure d, Miscellaneous expenditure » 71. Expenditure by way of grant to an institution for construct under: a. 3604 Compensation and Assignments to local Bodies b, 4210 Capital Outlay on Medical and Public Health cc, 2216 Housing 4d. 2210 Medical and Public Health mn of a hospital is debited 72. A grant for the construction of a school shall be debited to a. 2707 — Education b, 2216 — Housing ¢. 2202-General Education d. 4216-Capital Outlay on Housing (13) Refund of a Tax-revenue is accounted as: a a. Under a separate sub head under the same minor head b. Revenue Expenditure ©. Minus receipts under the same head 4. Reduction in the revenue receipt 74, Advance of pay on transfer is accounted as : Va. Loans and Advances b, Salaries c. Civil Advances Grant 29f Avon for Trvelling Expenses on trate isnooouned as a. Loans b, Travel Expenses ©. Grants 4. Civil Advances 76), All transactions exhibited under suspense heads relate to the accounts of other ‘Government only: a, True b. False _¢, Partially true d.Confusing 77. A Service receipt of which full particulars are not given should be initially credited . under a, Suspense Account b. 0029 —Land Revenue c. 049~ Interest Receipt d. 800 Other Receipts under the revenue head to which it appear to belong 78, Sale proceeds of Government land and building are described in,..of the KAC Vol. I a. Para 39 b. Article 39 ¢. Section’39 —d. Rule 39. 79. Municipal and other local taxes on building of Government school is debited under: a. 2059 Public Works b, 2216 Housing c. 2202 General Education d, 4059 Capital Outlay on Public Works 80,/She receipts from tolls, is credited under the major head a. 137 Roads and Bridges b. 337 Roads and Bridges c. 1054-Roads and Bridges d. 3054-102-Tools on Roads oe WAL AE (13% Thb sb Gb, WA Bb WAL, Ve —Answer Key, Ld Art22 4c Art2d 7. Art.24 (a) 10, a Art.24(b) 13. ¢ Art.24() 16. d Art 25(0) 19, d Art. 25() 22, ¢ Art25(Ann. A) 25, ¢ Art.25 (Ann. A) 28, a Art.26 (a) 31. © Art.26(b) 34, a Art.26 (b) 37. d Art.26 (6) 40. © Art.26( ¢)(Ann. BY 43. b Art.26(¢ ) (Ann. B) 46.4 Art.2T(a) 49. Art.30 AC) 52.0 Art30 AG) 55. Art30 A@) 58. b Art.32 (1) 61. Art32 LRQ) 64, a Art.33 (3) 67.4 Art33 LR(I) 70.¢ Art33 LR (1) 73.8 Arts 76. Art-37 79. ¢ Art40(a) 14 a Art 22 ec Art 7 B.c Art.2d (a) 11d Art. 24(6) Le Art.24(h) 17.b Art.25(6) 20, b Art.25(6) 23, b Art.25 (Ann. A) 26. Art.25 (Ann. A) 29, ¢ Art.26(b) 32. € Art.26 (b) 35. d Art.26(0) 38. b Art.26 (c) (Ann. BY 4 € Art.26(c)(Ann. B) 44.0 Art27 47.b Art 28 50. b (Art30 AQ) 53. a Art.30 AQ) 56, ¢ Art31 LRG) 59. b Art.32 LR(D) 62.b Art-32 LRQ) 65.4 Art-33(4) 68, a Art33 LR (1) 71d art33(a) 74. Art.36(b) 1d Att3T 80.¢ Arta? LR, Be Art23 6.6 Art2d(ay 9. Art24(a) 12.) Art24(, 15, d Art25 18.b Art.25(0, 21, € Art.25 (Ann, A) 24, a Art.25 (Ann. A) 27.4 Art.25 (Ann. A) 30. b Art.26 (b) 33.9 Art.26 (b) 36. ¢ Art.26 (0) 39. b Art.26 (¢) (Ann. B) 42. a Art.26 (6) (Ann. B) 45.0 Art27 48.d Art. 28 Sha Art30. AQ) S4.a Art30A@) 57,4 Art32) 60. a Art32 LR) (63. b Art32(2) 66. ¢ Art.33(5)(Note 2) 69.6 Art.33 LR() Thc Art34(a) 75. Art.36(b) 78.b Art.39 Servicetime, Departmental study centre, Typm, Blpm, Nta. Phone: 0471-2400401,15 The Kerala Account Code Vol.I 4-6 Model Questions Chapter —IV to VI LA recovery of loss made after the accounts of the year are closed shall be shown as: a. Arevenue receipt b. A deduction in receipt c. Amitem of receipt 4. A minus entry on the payment side 2. Aloss of cash which is written off under the orders of a competent authority should be debited as............ of the department concerned. a. Establishment charges b. Unforeseen Expenses ©. Office Expense 4. Contingent charges Chapere\}00- 22 ‘ 3,An overpayment of pay shall be debited to the head a. Pay ». Imegular ©. Unusual d. Miscellaneous i¢ rules relating to the exhibition of losses in the Appropriation Accounts are contained in the instructions issued by the -«. for the preparation of these ow a. Comptroller and Auditor General b. Finance Ministry ©. Central Board of Direct Taxes d. None of the above \5How are the departments of Govt. divided for the purpose of inter—departmental payments a. Service department and non-commercial department b. Service department and commercial department c. Commercial department and non-commercial department d. Finance department and revenue department \ 6,The acceptance of counterfeit notes is regarded as: Lance a. Receipt b. Expenditure c. Reduction in expenditure d. Loss of cash 7, Payments of amounts due by one Department of Govt. to another Department of the same Govt. shall ordinarily be made: a. By book transfer b. By strictly on cash basis ¢. By adjustment through Finance Dept. d. By mutually agreed upon by the concemed Dept. 8,Departments of Govt. are divided in to two group, for the purpose of: a. Carrying out the ideas of the Govt. b. Conduct the general business of Govt. c. Inter— departmental payments d. Rendering better service to tax payers sswer key: TaArts2(Note2) 2. d Art82LRU) 3.aArt83 4. aArt8S S.bArLS9 6. Da Be Servicetime, Departmental study centre, Typm, Blpm, Nta. Phone: 0471-2400401Uprred 1 Bepd The Constitution of India- Bare Act lodel Questions ‘The Union an Territory (Art. 1 to 4) 1. The authority for formation of new States and alteration of areas, boundaries or names of existing States. a, Parliament b. Rajya Sabha c. Lok Sabha d. President DALY OSI 59 BAAD wih Answers : La Citizenship (Art. 5 to 11) 1, India accepted which type of citizenship ? a. Dual b. Multinational c, Federal 4. Single Answers : Ld Fundamental Rights (Art. 12 to 35) 1. Fundamental Rights of citizens are enshrined in the Constitution on Part aI b.IV ell d. Schedule IV 2. According to Constitution of India among the following, is not a fundamental right ? a. Right to freedom of speech b. Right to equality ©. Right to strike 4. Right to live 3. The State shall provide free and compulsory education to all children of the age of six to fourteen years, Which article of the Constitution of India deals with the above right? a, Article 20 b, Article 21. A c. Article 21 d. Article 22 4, The State shall provide free and compulsory education to all children of the age of a3 to 15 years b. 4 to 10 years e.5to 12 years 4.6 to 14 years 5. Every person who is arrested shall be produced before the nearest Magistrate within hours. a24 b. 12 c6 4.10 6. No child shall be employed to work in any factory or engaged in any other hazardous employment below the age of a. 10 years b. 13 years ©. 12 years d. 14 years _aonndth fi equ KHOBWY 14) gc, BO) Ad Sep7. Quo- warranto is the name of a: els dayton canteen be ame — a, Summons b. Writ howe ease ¢. Petition d. Warning ®) Among the following which is not a writ ? a. Certiorari b. Whip meee dares hy GboAyjor AWS & Mandamus d. Hebeas Answers: Lea 2.c 3b 4.d 5.0 6.d 7.b 8.b Directive Principles of State Policy (Art.36-51) 1. There is equal pay for equal work for both men and women is one of the. a. Provisions in the Factories Act b, Fundamental Rights ¢. Directive Principles of State Policy d. None of the above 2. Uniform civil code for citizens is recorded in the Constitution as: a. Directive Principle b. Fundamental Right ~ maga degel 7 © Fundamental Duty d. Right against exploitation \ cao ont Answers: 1c 2.a Fundamental Duties (Art.51A) anbilh ann Amr +A {Among the following which is not a fundamental duity ? yr a, To safe guard public property wo 'b. Preserve the right heritage of our culture ¢. To promote international peace 4. To respect the National Flag and National Anthem 2. In the Constitution of India the Fundamental duties are contained in a. Article 51 b. Article 32 %. c. Article SIA 4. Article 31 3. How many fundamental duties are there in the Constitution of India ? a. Ten b. Twelve B. c. Eleven 4. Thirteen Answers: Le 2.c 3. ‘The Union-the President and Vice-President (Art.52-73) 1. The Executive Power of the Indian Union vests in the: a. President of India b. Chief of Amy Staff c. Vice-President of India d. Parliament 2, The Supreme Command of the Defence Forces of the Union shall a. Prime Minister of India b. Chief Justice, Supreme Court of India c. Vice President of India d. President of India yaraw 3. The President of India is elected by the members of: Parliament Both Houses of Parliament An electoral college consisting both Houses of Parliament and State Assemblies. All Legislative Assemblies aege 4, The President of India shall hold office for a term of... upon his office. a. 3 years b.6 years ee. 5 years 4.7 years . from the date on which he enters 5. The President of India shall hold office for a term of ‘Three years from the date of declaring the result Four years from the date he enters upon his office Five years from the date he enters upon his office Five years from the date of declaring the results eese © A person who has held office as President of India shall, be: a. Ineligible for re-election b. Eligible for re-election only after an interval of 5 years ©. Eligible for re-election to that office 4d. Eligible for re-election only if he has not completed 70 years of age 7. No person shall be eligible for election as President of India unless he has completed the age of a. Thirty years b. Thirty three years ©. Thirty two years 4. Thirty five years 8. The President of India take oath before whom ? a. The Vice President of India _b. Prime Minister of India c. The Lock Sabha 4d. Chief Justice of India 9. The Vice-President shall be elected by a. Elected members of the Lock Sabha b. Elected members of the Rajya Sabha c. All members of both Houses of Parliament d. Electoral college consisting of members of both Houses of Parliament 10. The Vice-President shall hold office for a term of : a. Three years b. Five years c. Four years d. Seven years 11. The President shall have........ to grant pardons in all cases including death sentences awarded by the Courts a. Limited power b. No power c. Power only with the concurrence of Cabinet d. Absolute power Answers: La 2d 3.c 4c S.c 6.¢ 7d 8d 9d 10.b 11.d~f Ministers (Art.74-75) 1. Duty to advise the President of India in the exercise of his functions is vested with: a, Ther Vice-President of India b. The Prime Minister of India cc. Council of Ministers of the Union Government d. The Speaker of the Loka Sabha 2. The Prime Minister shall be appointed by the a. President of India b. Chief Justice of India c. Vice-President of India d. Speaker of Lok Sabha 3. The Union Ministers are appointed by the a. Speaker of the House of the People b. Chief Election Commission ©. Prime Minister of India d._ President of India on the advice of the Prime Minister of India .. shall administer him the oaths of office of .. Of the Constitution. (9 Before a Union Minister enters upon his office. security according to the forms set out for the purpose in the. a, President/Third Schedule b. Chief Justice of India/Third Schedule ¢. Prime Minister/Second Schedule d. Cabinet Secretary/Fifth Schedule Answers: 1.e 2.a 3.d 4.b ‘The Attorney-General of India (Art.76) 1. Who appoints the Attorney-General of India a. The President of India b. The Prime Minister of India ¢. The Vice-President of India d, The Chief Justice of India 2. Who give advice to the Government of India upon legal matters and to perform other duties of a legal character? a. The President of India b. The Vice-President of India ©. The Prime Minister of India 4. The Attorney-General of India ot)3. The Attomey-General of India have tight of audience in 37 | a, Supreme Court only b. High Court only x ? >) cc. All Courts in the Territory of India d. The Attorney-General of India a — 4. Attorney General shall hold office. a oy a, Fora tenure period of five yeas. | 7270" < b. Fora tenure period oftwo years. thi ise c. Fora tenure period of three years. “~*~ ># 4. During the pleasure of the President of India Answer: La 2d 3.¢ 4.Parliament. (Art.79-88) 1. Indian Parliament consists of: a. President and two Houses b. Prime Minister and Lock Sabha c. Two Houses d. MP's, 2, How many members are nominated in the Council of States by the President of India a 8 v.12 10 dl4 3. ‘The members nominated by the President of India to the Rajya Sabha shall consist of persons having special knowledge in respect of such matters as a. Literature, Science, Art and Social Service b. Industries and Commerce c. Banking d. Sports and Games 4, What is the duration of the House of the people a. 2 years b.5 Years ©.3 Years 4.7 Years 5. A person shall not be qualified to be chosen to fill a seat on the House of the People, unless he is not less than a. 25 Years of age b. 35 Years of age c. 30 Years of age d. 40 Years of age 6. The power of dismissing the House of the People is vested with the a, Speaker of Loka Sabha b. President of India c. Prime Minister of India 4. Chief Election Coimmissioner Answers: 1.a 2.b 3.a 4b 5.a 6b Officers of Parliament (Art.89-98) /~ 1. The Ex-olficio chairman of the Council of States shall be a, The President of India 2 —EBpucened apd d) @eo: . b. The Speaker of the House of the People i ee c. The Vice-President of India - BAe 4. Prime Minister of India ( Dy. Chairman of the Rajya Sabha is appointed by a. The President of India b. The Chairman of Rajya Sabha c. Chosen by drawing lots by Members d. Elected by Members of Rajya Sabha Answers : Le 2.d Disqualifications of Members (Art.101-104) (@. The seat of a Member of either House of Parliament may be declared vacant by the House if he is absent from all meetings of the House without permission for days. a 60 b.40 c. 100 d. 30 (Gude cresinen ae en en otk@ A person shall be disqualified for being a Member of either House of Parliament if he is so disqualified under any provision of ......Schedule of the Constitution of India a. Second b. Tenth c. Fourth d. Nineth Answers: La 2.b Legislative Procedure (Art. 107-111) ' 1. Joint sittings of both the Houses of Parliament in certain cases may be convened by a. The President of India 2 b. Chairman of the Rajya Sabha coo diatted 4 ©. Prime Minister of India d._ Speaker of Lok Sabha 2. Joint sittings of both Houses of Parliament to resolve certain Bills area summoned by the a. Chairman of Rajya Sabha eres rT b. President of India Ae aw , ©. Speaker of House of the People es 4. Vice-President of India av | 3 .. Shall not be introduced in the Couneil of States. | a. Defence Bill . Impeachment Bill ko, ala 37> 29 i; a\ ¢. Amendment Bill d. Money Bill 7,4, Itany question arises whether a Bill is a Money Bill or not, the decision of the ...... Shall be oF tanya y ah fina x a. Majority of Members b. Chairman of the Rajya Sabha c. Leader of the House d. Speaker of the House of the People Answers: La 2b 3. 4.d Procedure in Financial Matters (Art.112-117) 1. Salary and allowances, Pension etc. in respect of Comptroller and Auditor General of India shall be the expenditure charged on the a. Consolidated Fund of India . Contingency Fund of India ¢. Public Account of India d. None of these 2. Supplementary grant is moved in the Parliament/Legislature Assembly when: 8 a. The amount authorized by law for a particular service is found to be insufficient & during the course of the year. ~ 'b. Surplus revenues is realized c. Expenditure of a Court decree is to be met d. Demand for a grant was not moved at the budget session 3. If the amount authorized by the Legislature for a particular service in the current Financial year is found to be insufficient, demands laid before the Legislature for additional fund is a. Supplementary demand for grants b. Revised demand b. Excess grants d. Vote of creditoe 6 ) The procedure of granting advance for part of financial year, pending presentation of demand and passing of the Appropriation Bill is called. a. Votes of credit b. Voted Advance ¢. Votes on account d. Advancing 5. Who will appoint every Judge of the Supreme Court ? ‘The Prime Minister of India ‘The Speaker of the House of People ‘The President of India The Vice-President of India pose Answers: La 2.a 3a dc 5. Comptroller and Auditor-General of India (Art.148-151) 1. Who has the authority to appoint C&AG of India? a. Prime Minister b. The Parliament b. The President 4d. Elected Members of the Lok Sabha deren 2.. The duties and powers of the C&AG is envisaged by Article ..... of the Constitution of India, a 149 b. 150 ©. 267 276 3.The Audit reports of the Comptroller and auditor General of India relating to the Accounts of the Union shall be submitted to a. The Vice-President of India b. Chief Justice of India c. The President of India d. Finance Minister Answers: L.b 2.a 3.¢ ‘The States-The Governor (Art.153-162) 1. The Executive power of the State shall be vested in the a, Legislature b. Governor _¢. High Court 4d. None of these 2. The Governor of a State shall be appointed by ‘a. The Chief Justice of India b, The Vice-President of India c. The President of India 4d. The Chief Justice of the State 3. No person shall be eligible for appointment as Governor unless a. He has completed 30 years b. He has completed 35 years ¢. He has completed 32 years d. He has completed 40 year Answers : Lb, 2.¢, 3.b, Council of Ministers (State) (Art.163-164) 1. Chief Minister of a State is appointed by: a. Governor b. Chief Justice of the High Court ¢. President of India d. None of these2. A Minister in the State shall hold office during the pleasure of the a. Chief Minister b. Legislature —_¢. Governor d. Cabinet 3. The total number of Ministers including the Chief Minister, in the Council of Ministers in a State shall not exceed. a. Twenty two percent of the total number of the members of the Legislative Assembly. b. Twenty percent -do- ©. Fifteen percent -d- d. One fifth of the total number of the members of the Legislative Assembly. 4, The number of Ministers, including the Chief Minister in a State shall not be less than: a 10 b.13 © 12 als months is not a member of the Legislature of the (& A Minister who for any period of... ase to be a Minister. State shall at the expiration of that period a. Six consecutive b, Two consecutive c. Seven consecutive d. Three consecutive Answers: La 2e 3.¢ de 5.a ‘The Advocate General (Art.165) WS, 19% (ee 1. The Advocate General for the State shall be appointed by a. The Chief Justice of India b. The Chief Justice of High Court c. The Chief Minister of the State d. The Governor of the State Answers : 1.d Conduct of Govt. Business (State) (Art.166-167) 1, All executive action of the Government of a State shall be expressed to be taken in the name of the a, Chief Justice of High Court b. Comptroller and Auditor General of India cc. Governor d. None of these 2. A person shall not be qualified to be chosen to fill a seat in the L.A., unless he is a. Not less than 18 years of age b, Not less than 30 years of age c. Not less than 25 years of age d. Not less than 21 year of age Answers : Le 2c Officers of the State Legislature (Art.178-187) 1. While the office of the Speaker of the Legislative Assembly is vacant, the duties of that office shall be performed by a. Deputy |Speaker of the Legislative Assembly b. Any member of elected amongst them c. Any member of the panel d. Any member appointed by the Governormoony BiM = Aeqsteeive comvd 2. When the office of the Speaker is vacant, the duties of the office shall be performed by the Dy. Speaker or, if the office of the Dy. Speaker is also vacant, by such member of the Assembly as the........ may appoint for the purpose. a. Chief Minister b, Leader of the Opposition c..Leader of the House 4, Governor Answers: la 2.d Questions as to Disqualification of Members (Art.192-193) 1. The question of disqualification of member of Legislative Assembly will be decided finally by a. Election commission b. Speaker of the L.A. ©. The Governor d. The Chief Minister Answers : Lb Salaries and Allowances of Members (Art.195) 1. Members of State Legislative Assembly are entitled to receive, LA and all b. Hi a a. Pay jowances . Honararium ¢. Salaries and allowances d, Honararium and allowances a G we Answers : Le a (Money Bills (Art.198-199) 1. In the State having Legislative Council also, Money Bill shall be introduced. a. Incither House b. Only in Legislative Assembly b. Only in the Legislative Council c. First in the upper House and then in the lower House. 2. Ifany question arises whether a Bill introduced in the Legislative |Assembly is a Money Bill or not, the decision of the . of the Legislative Assembly shall be final. a. Speaker of the Assembly b. Finance Minister ©. Dy. Speaker of the Assembly 4d. Chief Minister ' Answers : 1. b 2.a Procedure in Financial Matters (Art.202) 1. The annual Financial statement to be laid before the Legislative Assembly of the State will embédy a, ‘The sums required to meet expenditure charged on the Consolidated Fund of the State b. The estimated receipts for the year c. Sums required to mect other expenditure from the consolidated Fund. d. A&C above Answers : Ld By waebe Aphom awe camks, WMA mah Ca myoman Garden mma Ons ont dora haley)e yet cert 2 Votes on Account, Votes of Credit and Exceptional Grants (Art.206) 1. “Vote on Account” is obtained from the Legislative Assembly a. In the month of February every year b. On the expiry of every calendar year c. To meet unforeseen items of expenditure d. To make any grant in advance. Answers : Ld Special Provision-Finaneial Bills (Art.207) @ A Bill which, if enaeted and brought into operation, would involve expenditure from the SNe Consolidated Fund of a State, shall not be passed by a House of the Legislature of the State °° unless the...... has recommended to that house the consideration of the Bill. a fe a.Governor b, Speaker. Chief Minister, Leader of the House Answers : 1 Legislative Power of the Governor (Art.213) L has power to promulgate Ordinance ina State, ay oe? 7 a. Governor b. Speaker yap ©. President of India d. Assembly 2. Every Judge of a High Court shall be appointed by Warrant under hand and seal of; “~~? © © a. Chief Justice of India b. Govemor of the State hero c. Prime Minister of India 4. President of India Answers: La 2.d ‘The High Courts in the States (Art.214-232) 1. Ifany question arises as to the age of a Judge of a High Court, the question shall be decided by the a. Governor in consultation with the Chief Justice of High Court b. President after consultation with the Chief Justice of India and the decision of the President shall be final, ©. Chief Justice of Supreme Court of India 4d. Chief Justice of the concemed High Court 2. The administrative expenses of a High Court including all salaries, allowance payable to the officers and staff shall be a. Charged upon the Consolidated Fund of the State b, Charged on the Consolidated Fund of India ©. Voted expenditure of the State Government 4. Voted expenditure of the Central Government. Answers: Lb 2.a ‘The Panchayats (Art.243, 243A to 243-0) 1. Which Schedule of the Constitution of India deals with the powers of Panchayats aot bom 10" 4.12"2. State Election Commission for conducting elections to the Panchayats is appointed by a. Local Administration Dept. b. The Chief Minister c, The Chief Secretary d. The Governor A) Governor of a State shall constitute « Finance Commission to review the financial position of the Panchayats and to make recommendations, i ae a. Once in two years at ly aneht b. As and when deemed necessary gro hal hh a c. At the expiration of every fifth year d. One in three years 4, State Election Commission for conducting elections to the Panchayats is appointed by a. The Governor b. Chief Secretary ¢. Council of Ministers d. State Legislature © Provisions as to the maintenance of accounts by Panchayats and the auditing of such accounts are to be made by a. State Cabinet b. Finance Department i ©. State Legislature 4. Parliament oe Xs ri Answers: 1b 2.d 3.0 4.a 5c ‘The Municipalities (Art.243P-243ZG) 1. Power of Municipalities to levy, collect and appropriate such taxes, duties, tolls and fees in ‘gé Reeordance with such procedure and subject to such limits, is controlled by a ‘a. Municipal Council b. State Government a a c. Director of Municipalities d. Legislature by law i Answers : 1d Distribution of Legislative Powers (Art.245-255) 1. Which list contains matters in respect of which Parliament and the Legislature are competent to make laws? a. Union List b. State List c. Concurrent List d. Federal List 2. Prevention of cruelty to animal is included in: a. Concurrent List b. State List . Union List d. State List 3. State Legislature has exclusive power to make laws in respect of matters enumerated in: a. Union List 'b. Concurrent List c. Central d. State List @® Residuary Powers to make any law with respect to any matter not enumerated in the Concurrent List or State List. Vest with: a. Parliament b. Legislature ard, > HA c. President d. Governorwee eS oe 5. Ifa provision of a law made by State Legislature is repugnant to a law made by Parliament. a. The latter shall prevail’ », both shall be void. 3 gh © Theater shall be void 4. None of the above Aan. > OR Gey coe? Answers: Le 2.a 3. 4.0 S.a y Distribution of Revenue between the Union and the States (Art.268-281) : 1. Which tax wvied and collected by the Union and distributed between the Union and the 9 States, AS a. Taxes on Service b. Value Added Tax cc, Agricultural Income Tax d. None of these 2. Taxes levied and collected by Union and distributed between the Union and the States are a. VAT b. Income Tax c. Service Tax d. Corporate Tax fo 3. A percent of net proceeds of which tax is assigned to the States: Pagel 0 aes a, Sales Tax b. Professional Tax Rae a ost? c. Income Tax d. Property Tax Swi 229. 4. Finance Commission is constituted at the intervals of a. 1 Year b. 5 Years c. 2 Years d. 10 Years 5. The Finance Commission is constituted by a. The House of the People b. The Council of States | c. The President of India d. Union Government © Principles based on which Central resources are distributed among States are recommended by a. Finance Department b. Parliament. Noe ¢. Finance Commission d. Planning Commission ae 7. The guarantee given by Government for loans raised by others is called: apt yest a, Contingent Liability b. Collateral Security it Dow ¢. Performance guarantee d. Govt. Security Wer 1 q eo” @ The limits ofthe territorial waters the continental shelf, the excusive economic and other Maritime zones, of India shall be such as may be specified, from time to time. yo" x “a By or under any law made by Parliament Aorood ALS & 2 b. Executive orders of Government of India anseacninn Qalgen OP c. Cabinet OS a 4. By the President of India a) = a Answers: La 2.b 3.c 4.b 5c 6.c 7.a 8a . qu rnsD eld? Servicetime, Departmental study centre, Typm, Bipm, Nta. Phone: 04712400401st = Py pr ae Uisod QR lew Introduction to Indian Govt. Accounts and Audit-1 (CDT) Noted Points I. The Purpose of Accounts & Audit The book Introduction to Indian Government Accounts & Audit give a broad outline of the system of accounts of Govt. transactions and their audit. Accounts / aa 7 Accounts are statements of facts relating to money or things having money value. 3 nah dann § ansactions / The facts that are incorporated in accounting records are described as transactions. Accounting / : Accounting is the chronological register of money transactions classified under various heads to show significance of separate transactions and the combined effect of a series of transactions, Com; io1 yunts The initial accounts of the Govt. transactions are prepared by the authorities through whom the transactions occug, such as treasuries, the departmental officers etc. From these initial accounts the Indian Audit and Accounts Department compile monthly and annually accounts of all transactions. From the accounts, so compiled, the Combined Finance & Revenue Accounts of the Union & the State Governments are prepared by theComptroller and Auditor General of India) ¥ The Combined Finance & Revenue Accounts of the Union Govt. & the State Government is generally known as General Financial Statement. Y The General_Financial Statement incorporate the result of the total Government transactions in India. (/ A.Comparison of the receipt/ expenditure of any activity of several Governments can be made from the General Financial Statement. Auditor The agency /person employed for the purpose of audit is called an auditor. The word ‘auditor’ is derived from the Latin word ‘audire’ mean to hear.Audit , Audit is an 5¥ establishing whether they purport to relate. mination of accounting records, undertaken with a view to they correctly & completely reflect the transactions to which Audit is an instrument of financial control. [tacts as a safe guard on behalf of Govt. against extravagance, carelessness or fraud on the part of the departmental officers in the realization and utilization of public money or asset. It ensure that the accounts are maintained truly represent facts and thaf the expenditure has been incurred with due regularity and propriety. Besides, audit is an aid to Govt. It is the duty of audit is to provide Govt. with all possible assistance in the financial matters. he roles of audit and administration are complimentary to each other.) e Indian Audit & Accounts Department is the agency employed to maintain a watch over the financial transactions of the Governmenf? The Dept. audit the transaction of the executive on behalf of Parliament/Legislature and submit its report to the President/Governor. The Audit Dept must ensure that the following points: The accounts are maintained truly represent facts, Y The rules & orders of the competent authority in regard to financial matters have been obeyed. ¥ The expenditure has been incurred with due regularity & propriety. Y There is no wasteful expenditure on any scheme. The long standing Fundamental Principlés of Audit are the following: ¥_Prompt payment of money into the Treasury. ¥ /the strict following up of arrears. Y The necessity for accounts accurately showing the fact. ¥ The value of checking the accounts and of conducting local inspections. Y Periodical stock verification and the check of stock with the accounts Servicetime, Departmental study centre, Typm, lpm, Nta. Phone: 0471-2400401,I. The Purpose of Accounts and Audit fo Statements of facts relating to money or things having money value are: a. Transactions b. Records c. Reports d. Accounts /Q) The facts that are incorporated in accounting records are described as anphosv> a, Transactions ». Facts c. Budget d. Accounts ‘The Latin word “Audire” means: a. To see b. To watch c. To hear 4. None of the above 4, The word ‘Auditor’, whose duty is to check the accounts, is derived from the word: a. Audit , Account c. Audire d, Accountaney (57 Audit is an instrument of... ++. Control a. Budgetary b, Administrative , Financial d, Legal ¢ initial accounts of Govt. transactions in India are prepared by the authorities through whom the transactions occurs, such as: a, Nationalized Banks b. Reserve Bank of India ¢. Treasuries, departmental offices etc. __-—4t Audit Department. / 1/The Indian audit and Accounts Department audits the transactions of the executive and / submits its audit reports to: ( a, Parliament/Legislature , Cabinet/Chief Secretary ¢. Financial Committees d: President/Governor Which forms the instruments through which control over implementation of government policies is exercised ~ “a, Finance Accounts b. Audit Report c. Appropriation Account 4. Economics Review \ApPa Be He, Se, ee, Ta, Bb