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Sample questions
From the departmental-exam question corpus. These have not been through RankRacer's answer-verification gate — check the rule itself before relying on one.
1.Consider the following statements regarding items of receipts and payments which cannot at once be taken to a final head of receipt or expenditure:\n1. They are booked temporarily under the Major Head 8658—Suspense Accounts.\n2. The Major Head 8658 appears under 'L-Suspense and Miscellaneous' of the List of Major and Minor Heads of Account.\n3. The Suspense Heads are cleared by (—) Debit or (—) Credit, as the case may be, on receipt of the relevant details/information.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: D) 1, 2 and 3 All three statements are CORRECT (Para 1.1): "Items of receipts and payments which cannot at once be taken to a final head of receipt or expenditure owing to lack of information as to the nature or for any other reasons are to be booked temporarily under the Major Head 8658—Suspense Accounts under L-suspense and Miscellaneous of the List of Major and Minor Heads of Account. The Suspense Heads are to be cleared by (—) Debit or (—) Credit as the case may be on receipt of the relevant details/information."
2.Consider the following statements about the fundamental concepts of Government accounts:\n1. Government Account is kept on accrual basis.\n2. Reserve Bank of India is the main banker of the Government and other authorised Banks function as its agents while handling Government transactions.\n3. The terms 'debit' and 'credit' connote 'expenditure' and 'receipt' of cash respectively.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: B) 2 and 3 only Statement 1 INCORRECT: Para 1.2(a): "Government Account is kept on cash basis" — NOT accrual basis. Statement 2 CORRECT: Para 1.2(a): "Reserve Bank of India is the main banker of the Government and other authorised Banks function as its agents while handling Government transactions." Statement 3 CORRECT: Para 1.2(b): "The terms 'debit' and 'credit' are inevitably used in all accounts. They connote 'expenditure' and 'receipt' of cash."
3.Which of the following are the intermediary heads operated in Government accounts prior to transactions having their final impact on Government 'Cash Balance'?\n1. 8670 Cheques and Bills\n2. 8658 Suspense Accounts—108 PSB Suspense\n3. 8675 Deposits with Reserve Bank—101 Central-Civil\nSelect the correct answer using the code given below:
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: D) 1, 2 and 3 Para 1.2(c) lists the intermediary heads as: • 8670 Cheques and Bills • 8658 Suspense Accounts—108 PSB Suspense • 8675 Deposits with Reserve Bank—101 Central-Civil "While the head 'Cheques and Bills' accounts for the amount of cheques drawn, the heads 'PSB Suspense' and 'Deposits with Reserve Bank' reflect transactions taking place at the Banks. Thus, these do not represent income/expenditure of Government."
4.In Government books, a debit under the head 'PSB Suspense' represents:
- A.Amount owed by Government to Public Sector Banks
- B.Amount owed by Public Sector Banks to Government
- C.Amount owed by Reserve Bank of India to Government
- D.Amount of cheques drawn by the Pay and Accounts Officer
Explanation
Correct Answer: B) Amount owed by Public Sector Banks to Government Para 1.2(c): "A debit to 'PSB Suspense' in Government books represents amount owed by PSBs to Government, whereas a debit under 'Deposits with Reserve Bank' represents amounts owed by RBI to Government. Conversely, credits under these heads would represent amounts owed by Government to PSBs/RBI, as the case may be." Practical application: "The amount of Government receipts in a Public Sector Bank (PSB) when reported to Government through a receipt scroll alongwith relevant challans is debited to 'PSB Suspense'. Conversely, the amounts paid by a PSB against cheques drawn... will be credited to 'PSB Suspense'."
5.Consider the following statements regarding the clearance of intermediary heads in Government accounts:\n1. While original entries are positive (credit or debit), clearing entries are negative i.e. minus credit or minus debit.\n2. The expedient of minus transactions enables a linkage between original entries and clearing entries.\n3. Minus transactions result in larger balance amounts under the intermediary heads.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: A) 1 and 2 only Statements 1 and 2 CORRECT (Para 1.2(d)): "Thus, while original entries are positive (credit or debit) clearing entries are negative i.e. minus credit or minus debit. This is a special feature of government accounts. This expedient of minus transactions, enables a linkage between original entries and clearing entries..." Statement 3 INCORRECT: The same para states it "...keeps the balance amounts smaller than would have been the case otherwise" — NOT larger.
6.Consider the following statements regarding the Contingency Fund of India:\n1. It is in the nature of an imprest kept at the disposal of the President of India.\n2. Expenditure from the Fund can be incurred only after prior authorisation by the Parliament.\n3. It is accounted for under a single Major Head with Code 8000.\nWhich of the statements given above are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Explanation
Correct Answer: B) 1 and 3 only Statement 1 CORRECT (Para 1.3(ii)): "This is in the nature of an imprest and is kept at the disposal of the President of India..." Statement 2 INCORRECT: The Fund enables Government "to meet unforeseen expenditure pending its authorisation by the Parliament." Parliamentary approval follows the expenditure: "After the Parliament votes the bill, the money already spent out of the Contingency Fund is recouped by debiting the expenditure to the concerned functional Major Head etc. in the Consolidated Fund of India." Statement 3 CORRECT: "Contingency Fund being an imprest is accounted for under a single Major Head. (Major Head Code 8000)"
7.Consider the following statements regarding the Public Account of India:\n1. The receipts into the Public Account and disbursements out of it are not subject to vote by the Parliament.\n2. In respect of receipts under the Public Account, the Government acts as a Banker or Trustee.\n3. All loans raised by Government by issue of Public notifications and treasury bills are credited to the Public Account.\n4. The Public Account includes various suspense and remittance heads.\nWhich of the statements given above are correct?
- A.1, 2 and 3 only
- B.1, 2 and 4 only
- C.2, 3 and 4 only
- D.1, 2, 3 and 4
Explanation
Correct Answer: B) 1, 2 and 4 only Statement 1 CORRECT: "The receipts into the Public Account and disbursements out of it are not subject to vote by the Parliament." Statement 2 CORRECT: "In respect of such receipts, the Government is acting as a Banker or Trustee and refunds the money after completion of the contract/event." Statement 3 INCORRECT: "...all loans raised by Government by issue of Public notifications, treasury bills (internal debt)... are also credited into this Fund" — i.e., the Consolidated Fund of India, NOT the Public Account. Statement 4 CORRECT: "The Public Account also includes various suspense and remittance heads."
8.Match the following sub-divisions of the Public Account of India with their Major Head Code ranges:\nA. Small Savings, Provident Funds etc. — 1. 8781 to 8797\nB. Suspense and Miscellaneous — 2. 8001 to 8013\nC. Remittances — 3. 8999\nD. Cash Balance — 4. 8656 to 8680\nSelect the correct answer using the code given below:
- A.A-2, B-4, C-1, D-3
- B.A-2, B-1, C-4, D-3
- C.A-4, B-2, C-1, D-3
- D.A-2, B-4, C-3, D-1
Explanation
Correct Answer: A) A-2, B-4, C-1, D-3 Para 1.3 — Public Account is divided into six sub-divisions: (i) Small Savings, Provident Funds etc. (Major Head Codes 8001 to 8013) (ii) Reserve Funds (Major Head Codes 8115 to 8235) (iii) Deposits and Advances (Major Head Codes 8336 to 8554) (iv) Suspense and Miscellaneous (Major Head Codes 8656 to 8680) (v) Remittances (Major Head Codes 8781 to 8797) (vi) Cash Balance (Major Head Code 8999)