Government Accounting Rules, 1990 Pointers Questions

Government Accounting Rules, 1990 Pointers Quiz by Deepak Rahi. Government Accounting Rules, 1990 Pointers have been taken from Rahi Sir (Telegram Group) and Various other sources . All the MCQs are put out on the website to benefit all the employees appearing for SAS Exam. Questions are in Pointers format which will help during practice before appearing in the exam.

Government Accounting Rules, 1990 BASIC STRUCTURE OF THE FORM OF ACCOUNTS Pointers Questions

“1.The annual accounts of the Government records transactions take place during
Answer

Answer: Financial Year (1st April to 31st March of following year)



” “2.The Government accounts of a year may be kept open for a certain period in the following year for
Answer

Answer: Carrying out certain inter-departmental adjustments, and for closing the accounts of several Provident Funds and Suspense heads.



” “3.The transactions in Government accounts shall represent the actual cash receipts and disbursements during a financial year with exception to such rule as prescribed by
Answer

Answer: The Central Government in consultation with the CAG.



” “4.All transactions of the Governments taking place in other countries shall brought to account finally in the Indian books after they have been converted into
Answer

Answer: Indian currency Rupees



” “5.The parts in which accounts of Government are kept
Answer

Answer: 3. Consolidated, Contingency and Public Account.



” “6.The Account which a UT does not have a separate and of its own and the transactions pertaining to this account shall be booked in particular account of the Central Government.
Answer

Answer: Public Accounts



” “7.The divisions to which Consolidated Fund has been divided into
Answer

Answer: Two Divisions. Division I- Revenue – Revenue receipt and Revenue Expenditure Division II- Capital Receipt, Capital Expenditure and Public Debt, Loan and Advances



” “8.The part of the Consolidated Fund that deals with the proceeds of taxation and other revenue receipt and the expenditure met therefrom is
Answer

Answer: Revenue Division



” “9.Capital Account which deals with receipts of a Capital nature which
Answer

Answer: Cannot be applied as a set off to Capital Expenditure.



” “10.Receipts of a Capital nature intended to be applied as set off to Capital expenditure is accounted under
Answer

Answer: Capital Expenditure part of Division II of Consolidated Fund



” “11.Expenditures met usually from borrowed funds with the object of increasing concrete assets of a material and permanent character is accounted for under
Answer

Answer: Capital Expenditure part of Division II of Consolidated Fund



” “12.Loans raised and their repayments by Government and loans and Advances made by Governments and their recoveries are accounted for in the part of consolidated Fund
Answer

Answer: The Section ‘Public Debt’ Loans and Advances of Division II



” “13.Transactions relating to Appropriation to the ‘Contingency Funds’ and ‘Inter-State Settlement’ are recorded in part of Government Accounts
Answer

Answer: The Section ‘Public Debt’ Loans and Advances of Division II



” “14.Deposits’, ‘Advances’, ‘Remittances’ and ‘Suspense’ are recorded in which part of the Government Accounts
Answer

Answer: Public Accounts



” “15.The transactions relating to ‘Remittances’ and ‘Suspense’ in Public Account shall embrace all.
Answer

Answer: merely adjusting heads under which shall appear such transactions as remittances of cash between treasuries and currency chests and transfer between different accounting circles



” “16.The digit addition of which to Revenue Receipt Head gives corresponding revenue expenditure and further addition gives Capital Expenditure head and so on
Answer

Answer: 2



” “17.The main unit of classification in accounts shall be
Answer

Answer: The Major Head



” “18.The classification structure of Government Accounts consist of tiers
Answer

Answer: 5 (For CPWD remember it as 6)



” “19.5 tiers consist of
Answer

Answer: Sector>Major Head>Minor Head>Sub-Head>Detailed Head



” “20.””Crop Husbandry””, ‘Defence’ Audit etc. denotes services provided by the Government and is represented by
Answer

Answer: Major Head (Function)



” “21.Undertaken to achieve the objectives of the function represented by the major head is
Answer

Answer: Programme represented by Minor Head



” “22.schemes or activities under a programme is represented by
Answer

Answer: Sub-Head



” “23.Accounting head that is termed as an object classification
Answer

Answer: Detailed Head



” “24.Accounting head meant for itemised control over expenditure is
Answer

Answer: Detailed Head



” “25.The detailed classification of account heads in Government Accounts and the order in which the Major and Minor heads shall appear in all account records shall be such as given in
Answer

Answer: LMMH (List of Major & Minor Head)



” “26.The State Governments of J&K, Maharashtra, Manipur (01.01.1982) and Sikkim (15.01.1982) were delegated powers for opening of
Answer

Answer: Sub-Head and detail heads of accounts



” “27.Opening of sub-head and detailed the functions of the Central Government delegated to State Government in terms of Article
Answer

Answer: 258 (1) of Indian Constitution 239 (1) in respect of UT



” “28.List of Major Head and Minor Head of Accounts has been prescribed by
Answer

Answer: The CGA on the advice of the CAG



” “29.Charged expenditure is called so because it I charged on
Answer

Answer: Consolidated Fund



” “30.The word that is used in Article 150 has a comprehensive meaning so as to include the prescription not only of the broad form in which the accounts are to be kept but also the basis for selecting appropriate heads under which the transactions are to be classified is
Answer

Answer: Form



” “31.The classification of transactions in Government accounts, shall have closer reference to the
Answer

Answer: Function/Programme/Activity



” “32.expenditure on the maintenance and repairs of the non-Residential buildings under the administrative control of the PWD are shown under the major head
Answer

Answer: 2059



” “33.Major Head for Interest Receipt is
Answer

Answer: 49



” “34.Criteria for determining whether expenditure should be classified under heads of Capital Section or Revenue Section of the Consolidated Fund under Rule
Answer

Answer: 30 of GAR 1990



” “35.expenditure on Grants-in-aid to local bodies or institutions for the purpose of creating assets which will belong to these local bodies or institutions shall be classified as
Answer

Answer: Revenue Expenditure



” “36.Expenditure on a temporary asset shall be classified as
Answer

Answer: Revenue Expenditure



” “37.An expenditure of revenue nature shall not be classified as capital expenditure except
Answer

Answer: in cases specifically authorised by the President on the CAG



” “38.Capital expenditure is generally met from receipts of
Answer

Answer: a capital, debt, deposit or banking character



” “39.Government may meet Capital expenditure from ordinary revenues provided
Answer

Answer: there are sufficient revenue resources to cover this liability.



” “40.Allocation between capital and revenue expenditure on a capital scheme
Answer

Answer: Rule 31



” “41.The rules governing allocation between capital and revenue expenditure may be prescribed by the
Answer

Answer: President on the advice of the CAG



” “42.All charges for the first construction and equipment of a project as well as charges for intermediate maintenance of the work while not yet opened for service should be borne by the
Answer

Answer: Capital Accounts



” “43.All charges for maintenance subsequent to opening the project and all working expenses thereafter shall be borne by
Answer

Answer: Revenue Accounts



” “44.In the case of works of renewal and replacement which partake both of a capital and revenue nature, such expenditure should be borne by
Answer

Answer: Both Capital and Revenue in accordance with rule extant on the subject.



” “45.Depreciation to the property is borne by
Answer

Answer: Revenue Accounts



” “46.Expenditure on account of reparation of damage caused by extraordinary calamities such as flood, fire, earthquake, enemy action, should be charged to
Answer

Answer: Capital or Revenue or both as decided by the Government.



” “47.Capital receipts in so far as they relate to expenditure previously debited to Capital heads, accruing during the process of construction of a project, should be accounted for
Answer

Answer: In reduction of capital expenditure.



” “48.Capital receipts after opening of the project shall be treated as
Answer

Answer: Capital and shall not be taken to revenue account except under a special rule or order of Government,



” “49.Major Head under which net gain or loss by exchange of foreign currencies is accounted for
Answer

Answer: Gain (0075) and Loss (2075)- Miscellaneous General Services on account of revenue expenditure



” “50.Receipts on charges pertaining to more than one head of account may be booked in the first instance under
Answer

Answer: One of the head concerned but amount due to other heads should be transferred before the close of accounting year



” “51.Major Head of Land Revenue
Answer

Answer: 29



” “52.Major Head 2020 is
Answer

Answer: Collection of Taxes on Income and Expenditure



” “53.Scheduled Areas in a State has been contained in Article
Answer

Answer: 244(1) of Constitution



” “54.Receipts and expenditure pertaining to Scheduled Areas in a State shall be accounted for under the
Answer

Answer: Same major and minor heads under which corresponding receipts and expenditure pertaining to other areas of the State are accounted for



” “55.Recoveries of overpayments whether made in cash or by deduction from payment vouchers shall be accounted for as
Answer

Answer: reduction of expenditure under the appropriate expenditure head concerned irrespective of the year to which such recoveries relate.



” “56.Receipts and expenditure of commercial departments or undertakings shall be accounted for under the appropriate major and minor heads in the same way as ordinary receipts and expenditure of Government.
Answer

Answer: Gross Receipt and Expenditure



” “57.Where a Depreciation or Renewals Reserve Fund is established for renewing assets of any commercial department or undertaking, the expenditure on renewals and replacements should be borne by
Answer

Answer: Both Capital account and the Depreciation/Renewal Fund



” “58.The procedure to be followed in rectifying misclassifications in accounts shall be such as may be prescribed by
Answer

Answer: Government



” “59.All amounts due to Government which are found to be irrecoverable shall be
Answer

Answer: written-off from the Debt head of account concerned to an expenditure head as a loss to Government



” “60.balance due by Government remaining unclaimed for such time as may be prescribed by Government shall be
Answer

Answer: credited as revenue of the Government concerned by debit to the Debt or Deposit head concerned.



” “61.Amounts outstanding due to book-keeping errors under heads which close to balance shall be written-off to the Major Head
Answer

Answer: 8680- Miscellaneous Government Account



” “62.Amounts outstanding due to book-keeping errors under heads which close to balance shall be written-off with the specific approval of the
Answer

Answer: CAG where he is maintaining the account after concurrence of Govt. or CGA in case of departmentalised Accounts after concurrence of the CAA concerned



” “63.Unreconciled balances or differences relating to any Debt, Deposit, Suspense and Remittance heads in the State Accounts may be written off to 8680 by the AG of the State up-to ₹
Answer

Answer: ₹ 1000/-



” “64.Power of the AG in above case shall be subject to
Answer

Answer: Outstanding for over 5 years,AG is of opinion that dead end has reached,Concurrence of state Govt. obtained



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