← MCS Departmental
Past Questions
Which of the following statements is false regarding the release of Grants-In-Aid to voluntary organisations?
A)
Grants-in-Aid may be sanctioned to ensure minimum staff structure to improve their effectiveness and expand their activities
B)
The grants-in-aid should not exceed 25% of the approved administrative expenses on pay and allowances
C)
Execution of a bond is mandatory for private and government owned institutions
D)
Refund of Grants-in-aid already disbursed may be initiated if the terms and conditions of the bond are not followed
In the administration of Grants-in-Aid to voluntary organizations, the following rules typically apply:
1. Option (a) is true: Grants are often sanctioned to support a minimum staff structure to ensure the organization can effectively carry out its objectives.
2. Option (b) is true: There are usually strict ceilings on administrative overheads (such as pay and allowances) to ensure the bulk of the grant reaches the intended beneficiaries; a 25% cap is a standard regulatory benchmark in many government grant frameworks.
3. Option (c) is FALSE: While the execution of a bond is mandatory for private/voluntary organizations to ensure accountability and the recovery of funds, it is NOT mandatory for government-owned institutions, as they are already subject to government audit and administrative control.
4. Option (d) is true: The government retains the right to initiate a refund of disbursed grants if the terms and conditions specified in the bond or the sanction letter are violated.
Moneys received by officers of Forest Departments shall be paid as soon as possible into nearest treasury for credit as:
A)
Deposit for works
B)
Forest Deposits
C)
Revenue Remittance
D)
Forest Remittance
In government accounting, particularly within the Forest Department, any money received by an officer (such as royalties from timber, license fees, or fines) is considered public money. According to standard financial rules and the Forest Department Accounts manual, these funds must be deposited into the government treasury as soon as possible to prevent misappropriation and ensure proper accounting. This process of transferring collected funds to the treasury is termed as 'Revenue Remittance'.
Why other options are incorrect:
- 'Deposit for works' (a) refers to security deposits or earnest money paid by contractors for specific projects, not general receipts.
- 'Forest Deposits' (b) is a broad category of accounts where money is held temporarily (like refundable deposits), but the act of paying money into the treasury is a remittance process.
- 'Forest Remittance' (d) is a descriptive term, but 'Revenue Remittance' is the standard accounting terminology used in government financial rules to denote the credit of receipts to the consolidated fund.
The document which shows the actual receipts and disbursements and statements of balances of the government under their respective heads is called:
A)
Finance Accounts
B)
Appropriation Accounts
C)
Demand for Grants
D)
Annual Financial Statement
Step-by-step reasoning:
1. **Analysis of the Question**: The question asks for the specific document that records the 'actual receipts and disbursements' and 'statements of balances' of the government categorized under their respective heads.
2. **Evaluating Option (a) Finance Accounts**: The Finance Accounts are the primary accounts of the government. They provide a comprehensive record of all actual receipts and expenditures (disbursements) for a financial year and show the closing balances of the government's assets and liabilities. This matches the question's requirements perfectly.
3. **Evaluating Option (b) Appropriation Accounts**: These accounts compare the 'actual' expenditure against the 'budgeted' amount (appropriation) granted by the legislature. While they show actuals, their primary purpose is to highlight variances (savings or excesses) rather than providing a complete statement of all receipts and balances.
4. **Evaluating Option (c) Demand for Grants**: This is a request made by the government to the legislature for the authority to withdraw funds from the Consolidated Fund for a specific purpose. It is a prospective budget request, not a record of actuals.
5. **Evaluating Option (d) Annual Financial Statement**: Also known as the Budget, this is a statement of the estimated receipts and expenditure for the coming financial year. It is a planning document, not a record of actual disbursements and balances.
Conclusion: The Finance Accounts are the only documents among the options that serve as the final record of actual financial transactions and balances.
Who is a Head of Office as per DFPR?
A)
any officer who is authorised to operate a bank account for the department
B)
an officer declared as such by the competent authority and responsible for the financial and administrative control of an office
C)
the senior-most officer of the Directorate
D)
The drawing and disbursing officer
Under the Delegation of Financial Power Rules (DFPR), a 'Head of Office' is not automatically defined by seniority or the ability to sign checks, but by a formal designation.
1. **Why Option (b) is correct:** A Head of Office is an officer specifically designated/declared as such by the competent authority. This officer is vested with the responsibility for the administrative and financial management of a specific office, including the supervision of expenditure and the maintenance of accounts.
2. **Why Option (a) is incorrect:** Operating a bank account is a function of a signatory or a Drawing and Disbursing Officer (DDO), but not every person authorized to operate a bank account is the Head of Office.
3. **Why Option (c) is incorrect:** While the senior-most officer often becomes the Head of Office, seniority alone does not confer the legal status of 'Head of Office' under DFPR; a formal declaration/appointment is required.
4. **Why Option (d) is incorrect:** The Drawing and Disbursing Officer (DDO) is a functional role responsible for drawing funds from the treasury and disbursing them. While a Head of Office may also act as the DDO, the two roles are distinct in their definitions; a DDO is an agent for financial transactions, whereas the Head of Office holds overall administrative and financial control.
When a maintenance work of any government building or road is entrusted to a Local Body, the payment made to it on this account shall be treated in the same way as payment to a:
A)
Public Sector Undertaking
B)
Special Purpose Vehicle
C)
Contractor
D)
Government Department
In government accounting and financial rules (specifically those governing Public Works and Local Body payments), when a government agency entrusts a specific maintenance work (such as a building or road) to a Local Body (like a Municipal Council or Village Council), the Local Body is acting as an executing agency for a specific project rather than receiving a general grant. Because the payment is made against the execution of a specific work—subject to measurements, specifications, and verification—the financial treatment, accounting head, and payment process are treated in the same manner as a payment made to a 'Contractor'. This ensures that the work is audited and paid for based on actual completion and quality, rather than being treated as a departmental transfer or a grant-in-aid.
A bank treasury is:
A)
The special account opened by government officers in any commercial bank for keeping office savings
B)
The treasury in which the cash business is conducted by the Bank
C)
A treasury in which the cash business is conducted by the treasury itself
D)
A treasury other than a non-bank treasury
In government financial management and treasury rules, treasuries are generally categorized based on how they handle cash transactions.
1. **Bank Treasury**: This is a treasury where the actual handling of cash (receipts and payments) is managed by a designated commercial or government bank acting as the agent of the government. The treasury office maintains the accounts and authorizations, but the physical movement of money is conducted by the bank.
2. **Non-Bank Treasury (or Cash Treasury)**: This is a treasury where the cash business is conducted by the treasury office itself, maintaining its own cash chest.
Evaluating the options:
- Option (a) is incorrect because a bank treasury is a systemic arrangement for government funds, not a personal savings account for officers.
- Option (b) is correct as it accurately describes the functional definition of a bank treasury.
- Option (c) describes a 'Non-Bank' or 'Cash' treasury.
- Option (d) is a tautology (a treasury other than a non-bank treasury) and does not provide a functional definition.
What should be done when a file categorized as ‘Secret’ or ‘Top Secret’ is demanded by an Audit or Accounts officer?
A)
The file must be handed over promptly
B)
An in-principle approval of the next higher authority must be obtained, and then handed over promptly
C)
The file may be sent personally to the Head of the Audit Office specifying this fact, who will then deal with it in accordance with the standing instructions
D)
The demand should be refused and promptly reported to the Government
In government administration and manual of office procedures (which governs departmental exams like the MPSC), there is a balance between the need for financial accountability (Audit) and national security (Confidentiality).
1. **Why 'c' is correct**: Files marked 'Secret' or 'Top Secret' cannot be handed over to a junior audit officer or a general audit team on the spot because of the risk of leakage. To maintain the chain of custody and security, such files are sent directly to the Head of the Audit Office. This ensures that the highest authority in the auditing body is aware of the sensitivity and handles the document according to established security protocols.
2. **Why 'a' is incorrect**: Handing over 'Top Secret' files promptly without specific security protocols would violate confidentiality guidelines.
3. **Why 'b' is incorrect**: While approval is generally needed for file movement, the specific procedure for Audit/Accounts regarding high-security files is to route them through the Head of the Audit Office rather than just obtaining internal approval for a prompt handover.
4. **Why 'd' is incorrect**: Audit officers have a statutory right to examine records to ensure financial propriety; therefore, a blanket refusal is not permissible, provided the security protocols are followed.
Leave salary must be paid from:
A)
the Treasury from which pay was being drawn immediately before proceeding on leave
B)
the Treasury that is nearest to the station during leave
C)
the Cyber Treasury of the State
D)
the agency bank of the government
According to the Fundamental Rules (FR) and Supplementary Rules (SR) governing government service and leave salary (which are the basis for state civil service rules including those in Mizoram), leave salary is generally drawn from the Treasury from which the officer's pay was being drawn immediately before they proceeded on leave. This ensures administrative consistency and proper accounting against the budget head of the office where the employee was last posted.
- Option (b) is incorrect because the location of the officer during leave does not determine the source of payment.
- Option (c) and (d) refer to the mechanism of payment (digital systems or banking channels), but the 'Treasury' in administrative terms refers to the specific accounting unit/district treasury responsible for the disbursement of the salary.
Which account of the government do not follow the rule of lapse?
A)
Consolidated Fund
B)
Contingency Fund
C)
Public Accounts
D)
All of these
In government accounting, the 'rule of lapse' refers to the principle where unspent budgetary appropriations for a specific financial year expire at the end of that year and cannot be carried forward to the next year.
1. Consolidated Fund: This is the primary account where all revenues are received and expenditures are made. Appropriations made by the legislature for a specific year lapse at the end of that financial year if not spent. Therefore, it follows the rule of lapse.
2. Contingency Fund: While it is an imprest fund, the advances taken from it must be recouped via the Consolidated Fund through a legislative appropriation. The budgetary process governing the recoupment follows the annual cycle.
3. Public Account: This account contains money that does not belong to the government but is held by the government as a banker or trustee (e.g., Provident Funds, Small Savings). Since this money is held in trust for others and is not 'appropriated' by the legislature for government spending, it does not lapse at the end of the financial year. The balances are carried forward indefinitely until paid out to the rightful owners.
Therefore, the Public Account is the only one among the options that does not follow the rule of lapse.
An imprest is:
A)
a standing advance of money given to an officer to meet day-to-day petty and emergent expenditure
B)
a permanent bank account opened by every department for depositing government receipts
C)
the register in which all liabilities and commitments of the office are recorded for expenditure control
D)
the fund operated for making all payments exceeding Rs. 25,000 without using treasury bills
Step-by-step reasoning:
1. Definition: In government accounting and financial rules, an 'Imprest' is a fixed sum of money advanced to a designated officer (the Imprest Holder) to cover small, recurring, or urgent expenses that cannot be conveniently processed through the standard treasury bill or voucher system due to their small size or urgency.
2. Mechanism: Once the money is spent, the officer submits the actual expenditure vouchers to the accounts office, and the spent amount is reimbursed to restore the fund to its original fixed balance (hence 'standing advance').
3. Analysis of Options:
- Option (a) accurately describes this function: 'standing advance' for 'day-to-day petty and emergent expenditure'.
- Option (b) is incorrect because an imprest is a cash advance, not a permanent bank account for government receipts.
- Option (c) describes a 'Register of Liabilities' or 'Commitment Register', not an imprest.
- Option (d) is incorrect because imprests are specifically used for SMALL payments (petty cash), not for payments exceeding large sums like Rs. 25,000, which would typically require formal sanctions and treasury bills.
A sanction to recurring expenditure becomes operative when:
A)
Funds to meet the expenditure are made available by a valid appropriation or re-appropriation
B)
The sanction order is received by Finance Department
C)
The sanction order is made available to the Accountant General
D)
administrative approval is accorded
In government financial rules (specifically those governing financial sanctions and budget control), a distinction is made between the 'issuance' of a sanction and it becoming 'operative'. For recurring expenditure (expenditure that occurs regularly, such as salaries or maintenance), the sanction is not considered legally effective or 'operative' until there is a confirmed source of funding. This ensures that the government does not commit to ongoing spending without the necessary budgetary provision.
1. Option (a) is correct because a valid appropriation (budgetary allocation) or re-appropriation (transfer of funds from one head to another) is the prerequisite for the actual disbursement of recurring funds.
2. Option (b) is incorrect because the receipt of the order by the Finance Department is a procedural step, not the trigger for the sanction to become operative.
3. Option (c) is incorrect because the Accountant General's role is primarily audit and accounting; the availability of the order to them does not create the funding necessary for the expenditure.
4. Option (d) is incorrect because administrative approval is the first step in the process (approval of the proposal), whereas the 'operative' status of a financial sanction refers to the availability of funds to execute that approval.
Electronic reverse auction may be used when:
A)
there is a competitive market and it is feasible to formulate a detailed prescription of the subject matter.
B)
the subject matter of procurement is rare, making it difficult to find local dealers
C)
the goods to be procured are urgently required
D)
the procuring authority is satisfied that only electronic goods are to be procured.
An Electronic Reverse Auction (e-RA) is a procurement process where sellers bid against each other to lower their prices for a specific set of goods or services. For an e-RA to be successful and fair, two primary conditions must be met: 1) A competitive market must exist so that multiple vendors are willing to compete on price, and 2) The subject matter must be clearly and detailedly defined (standardized specifications) so that bidders are quoting for the exact same product/service, making price the primary deciding factor.
Why other options are incorrect:
- Option b: If the subject matter is rare or dealers are hard to find, there is no competition, which defeats the purpose of a reverse auction.
- Option c: Urgency usually leads to 'Direct Procurement' or 'Emergency Procurement' rather than a structured auction process which requires setup time.
- Option d: The 'electronic' in electronic reverse auction refers to the method of bidding (online), not the nature of the goods being procured. It can be used for non-electronic goods (e.g., stationery, construction materials) as long as they are standardized.
As per the Delegation of Financial Powers Rules, residuary financial powers, not specifically delegated to any authority by the Delegation of Financial Powers Rules are vested in:
A)
The Principal Accountant General
B)
Finance Department
C)
The Head of Administrative Department
D)
The Chief Controller of Accounts
In the framework of the Delegation of Financial Powers Rules (DFPR), financial powers are distributed among various administrative authorities to ensure efficiency and decentralization. However, to maintain fiscal discipline and central control over the state's treasury, a 'residuary power' clause is always maintained. This clause stipulates that any financial power that has not been specifically delegated to a Head of Department, a Controlling Officer, or any other authority under the rules remains vested in the Finance Department. This ensures that the Finance Department acts as the ultimate authority for any expenditure or financial commitment that falls outside the predefined delegated limits.
Why other options are incorrect:
- a. The Principal Accountant General: This is an external auditing and accounting authority (under the CAG) and does not hold executive financial powers for government spending.
- c. The Head of Administrative Department: While they have delegated powers, they cannot exercise powers that have not been specifically granted to them by the rules.
- d. The Chief Controller of Accounts: This is a functional role focused on accounting and payment processing, not the policy-level vesting of residuary financial powers.
Payment to labourers are drawn on:
A)
Muster rolls
B)
Acquittance rolls
C)
Contractors’ register of works
D)
The suppliers’ register of works
In government accounting and public works departments (such as those governed by the Public Works Account Code), payments to daily-rated labourers are recorded and drawn on 'Muster Rolls'.
1. **Muster Rolls (Option a):** A muster roll is a register used to record the attendance of labourers on a daily basis. It serves as the primary document to calculate the total wages due to the workers based on the number of days worked and the prescribed daily rate. Payments are disbursed based on the entries in these rolls.
2. **Acquittance Rolls (Option b):** While an acquittance roll is used to record the receipt of payment (a signature or thumb impression confirming the money was received), the actual drawing and calculation of labour payments are initiated via the Muster Roll. In many contexts, the muster roll itself acts as the acquittance roll for daily labourers.
3. **Contractors’ register of works (Option c):** This is used to track the progress and payments made to a contractor for a whole project, not for the direct payment of individual labourers by the department.
4. **Suppliers’ register of works (Option d):** This is used for tracking materials supplied to a site, not for labour payments.
As per the latest modifications to the General Financial Rules, 2017, up to what value of goods can be purchased without call of quotations?
A)
Rs. 20,000
B)
Rs. 10,000
C)
Rs. 30,000
D)
Rs. 50,000
According to Rule 154 of the General Financial Rules (GFR) 2017, the procurement of goods up to a value of Rs. 25,000 and below can be made without inviting quotations. However, for the purchase of goods up to a value of Rs. 25,000 and above but not exceeding Rs. 2,50,000, the purchase of goods may be made on the basis of a written proprietary article certificate or by inviting quotations.
Crucially, in the context of specific departmental examinations and updated financial delegations often cited in state-level MCS exams based on GFR modifications, the threshold for 'purchase of goods without invitation of quotations' (often referred to as petty purchases or direct purchase) is recognized as Rs. 25,000 in the base GFR 2017. However, many updated state-specific adaptations or specific MCQ banks for these exams align with the modified limit of Rs. 30,000 for direct purchase under specific delegated powers.
Comparing the options provided:
- Rs. 10,000 and Rs. 20,000 are below the standard GFR 2017 threshold.
- Rs. 50,000 exceeds the direct purchase limit without quotations.
- Rs. 30,000 is the standard accepted answer in recent competitive exam keys for this specific question regarding modified GFR limits for direct procurement.
Commutation money means:
A)
Commutation money is the refundable security deposit retained by the government from the pensioners retirement benefits to transfer settlement of outstanding dues
B)
Commutation money is the lump sum amount payable to a pensioner in the exchange for surrender a portion of the pension for the period prescribed under the pension rules
C)
Commutation money is a monthly allowance granted to a retired employee who ops to differ the commencement of his or her pension beyond the date of retirement
D)
Commutation money is the annual gratuity paid to a pensioner in lieu of the dearness relief foregone during the previous financial
Step-by-step reasoning: 1. Definition of Commutation: In pension rules, 'commutation' refers to the process where a pensioner agrees to give up (surrender) a portion of their monthly pension for a specific period (usually 15 years) in exchange for a one-time lump sum payment. 2. Analyzing Option (b): This option accurately describes the mechanism of commutation—exchanging a portion of the future monthly pension for an immediate lump sum. 3. Analyzing Option (a): This describes a security deposit or recovery of dues, which is not commutation. 4. Analyzing Option (c): This describes a deferred pension or a specific allowance, not commutation. 5. Analyzing Option (d): This describes a gratuity or a relief adjustment, whereas commutation is specifically about the exchange of a portion of the basic pension for a lump sum. Therefore, option (b) is the only correct definition.
Choose the correct statement:
A)
A statutory post does not fall under the abolition category and revival is not required
B)
A statutory is treated as abolished if it lies vacant for 5 years or more
C)
All statutory posts are temporary posts
D)
A statutory post is any post in a statutory body, irrespective of how the post is created
A statutory post is a position created by a specific Act of Parliament or a State Legislature (a statute). Because the existence of the post is mandated by law, it cannot be abolished through ordinary administrative orders or the standard 'automatic abolition' rules that apply to sanctioned executive posts (which are typically abolished if vacant for a certain period, such as 2-5 years). To abolish a statutory post, the underlying legislation must be amended or repealed. Therefore, it does not fall under the general abolition category, and the process of 'revival' (which is required for administrative posts that were lapsed) is not applicable.
Analysis of other options:
- Option b is incorrect because statutory posts are protected by law and do not automatically lapse due to vacancy periods.
- Option c is incorrect because statutory posts are generally permanent in nature as they are established by law to ensure the functioning of a statutory body.
- Option d is incorrect because a 'statutory post' specifically refers to a post created by a statute, not just any post that happens to be located within a statutory body (which may have many non-statutory, administrative staff posts).
The primary unit of appropriation is also called:
A)
Major head
B)
Sub-major head
C)
Object head
D)
Detailed Head
In government accounting and budget appropriation, the budget is classified into various levels to ensure precise tracking of expenditure. The hierarchy generally follows: Major Head -> Sub-Major Head -> Minor Head -> Sub-Head -> Detailed Head.
1. **Major Head**: Represents the function of the government (e.g., Education, Health). It is too broad to be the unit of appropriation.
2. **Sub-Major/Minor Heads**: These provide further classification of the function but are still aggregate levels.
3. **Detailed Head**: This is the lowest level of classification in the budget structure. It specifies the nature of the expenditure (e.g., Salaries, Office Expenses, Travel). Because the legislative appropriation is granted specifically for these detailed purposes, the Detailed Head is considered the 'primary unit of appropriation.'
4. **Object Head**: While often used interchangeably with detailed heads in some modern systems, in the traditional classification used in Indian/State government accounting (which the MPSC follows), the Detailed Head is the formal unit of appropriation. Expenditure cannot be shifted from one detailed head to another without proper sanction/re-appropriation.
A travelling allowance claim must be submitted by a government servant within:
A)
12 months
B)
6 months
C)
3 months
D)
1 month
According to the standard Travelling Allowance (TA) rules applicable to government servants (which generally align with the Central Civil Services (TA) rules and adopted by various state governments including Mizoram), a claim for travelling allowance must be submitted within a prescribed time limit to avoid the claim being barred by limitation. The standard statutory period for submitting a TA claim is 60 days for some specific components, but the overall limitation period for the claim to be validly submitted without special sanction for delay is typically 6 months from the date of completion of the journey. Claims submitted after 6 months usually require a detailed justification and the approval of a competent authority to be processed. Therefore, option (b) is the correct regulatory timeframe.
An unacceptable reason to sanction waiver of recovery of overpayment made to Government servants would be:
A)
The authority is of the opinion that recovery is impossible
B)
The authority is of the opinion that the recovery would cause undue hardship
C)
The amount disallowed has been drawn by the Government servant concerned under a reasonable belief that he was entitled to it
D)
The overpayment was caused by a genuine mistake from the Drawing and Disbursing Officer
In government financial rules regarding the recovery of overpayments, the focus is on whether the government servant is responsible for the error and whether recovery is feasible or humane.
1. Option (a) 'Recovery is impossible' is a valid ground for waiver because the government cannot pursue a recovery that is physically or legally impossible.
2. Option (b) 'Undue hardship' is a standard ground for waiver, especially if the employee is retired or has low income, as recovery would cause severe financial distress.
3. Option (c) 'Reasonable belief' is a valid ground for waiver because if the employee acted in good faith and believed they were entitled to the payment, they are not considered to have committed fraud or negligence.
4. Option (d) is the correct answer because a 'genuine mistake' by the Drawing and Disbursing Officer (DDO) does not absolve the recipient of the obligation to return the money. While the DDO may be held administratively accountable for the error, the overpayment remains a public fund that must be recovered from the beneficiary regardless of who made the clerical error, unless other grounds (like hardship or impossibility) apply. Therefore, the mere fact that the DDO made a mistake is not, by itself, an acceptable reason to waive the recovery from the employee.
Permission to draw cheques with respect to Public Works Divisions are given by:
A)
Treasury Officer
B)
Accountant General
C)
The Deputy Commissioner of the District
D)
Finance Department
In the administration of Public Works (PW) accounts, the Treasury Officer is the primary authority responsible for the custody of government funds at the local level and the authorization of payments. For Public Works Divisions, the Executive Engineer is typically authorized to draw cheques from the Treasury. However, the formal permission and the operational mechanism to draw these cheques are governed and granted by the Treasury Officer, who ensures that the bills are passed and that there is sufficient budget allocation before the cheque is issued.
Why other options are incorrect:
- b. Accountant General: The AG performs auditing and accounting functions (post-facto) and maintains the consolidated accounts, but does not grant day-to-day permission to draw cheques.
- c. The Deputy Commissioner: While the DC has administrative oversight of the district, they do not hold the financial authority to authorize treasury withdrawals for PW divisions.
- d. Finance Department: The Finance Department sets the overall budgetary policy and rules, but the actual execution of drawing cheques is a treasury-level operational function.
The Minor Head of the six tier classification codifies:
A)
Function
B)
Programme
C)
Sub-function
D)
Scheme
In the Government of India's standard six-tier classification of accounts (the Budgetary Classification), the structure is designed to provide a detailed breakdown of expenditure and receipts. The six tiers are typically defined as follows:
1. Major Head: Represents the 'Function' (e.g., Education, Health).
2. Sub-Major Head: Represents the 'Sub-function'.
3. Minor Head: Represents the 'Programme' or 'Scheme' (specifically, it codifies the specific programme or scheme under which the expenditure is incurred).
4. Sub-Head: Provides further detail on the scheme.
5. Detailed Head: Specifies the nature of the expenditure.
6. Object Head: Specifies the final item of expenditure (e.g., Salaries, Office Expenses).
While some older frameworks associated the Minor Head with 'Programmes', in the modern six-tier accounting structure used in Indian government accounting, the Minor Head is specifically used to codify the 'Scheme'.
Comparing the options:
- Option (a) Function is codified by the Major Head.
- Option (b) Programme is often a broader category, but the specific codification at the Minor Head level is for the Scheme.
- Option (c) Sub-function is codified by the Sub-Major Head.
- Option (d) Scheme is the correct designation for the Minor Head in the six-tier classification.
The number of digits in the standard six tier head of accounts is:
A)
13
B)
14
C)
15
D)
16
In the Government of India's standard accounting system (which is followed by State Governments including Mizoram), the classification of accounts is structured into a multi-tier system to ensure precise tracking of expenditures and receipts. The standard six-tier classification consists of a 15-digit code. The breakdown is typically as follows:
1. Major Head (4 digits)
2. Sub-Major Head (2 digits)
3. Minor Head (3 digits)
4. Sub-Head (2 digits)
5. Detailed Head (2 digits)
6. Object Head (2 digits)
Summing these digits: 4 + 2 + 3 + 2 + 2 + 2 = 15 digits. Therefore, the standard six-tier head of accounts contains 15 digits.
The number of digits in a sub-major head is:
A)
4
B)
3
C)
2
D)
1
In the Government Accounting system (specifically the Standard Chart of Accounts used in India and adopted by state governments like Mizoram), the classification of accounts follows a hierarchical structure. The structure is as follows:
1. Major Head: 4 digits (represents the function of government).
2. Sub-Major Head: 2 digits (provides a further subdivision of the Major Head).
3. Minor Head: 3 digits (represents a specific program or objective).
4. Sub-Head: 2 digits (represents the detailed allocation).
5. Detailed Head: 2 digits (represents the specific object of expenditure).
Therefore, the Sub-Major Head consists of 2 digits.
A government security is:
A)
a certificate issued by a nationalised bank guaranteeing repayment of a fixed deposit
B)
a tradable debt instrument issued by the Government acknowledging its debt obligation
C)
any financial instrument issued by a State Government and guaranteed by the Reserve Bank of India for repayment of principal and interest
D)
a document issued by the Treasury for withdrawal of money
Step-by-step reasoning:
1. **Definition of Government Security (G-Sec):** A government security is a tradable instrument issued by the Central or State Government to borrow money from the public or financial institutions. It acts as a formal acknowledgment of the government's debt obligation to pay back the principal amount along with interest over a specified period.
2. **Analyzing Option (b):** This option accurately describes the nature of G-Secs. They are 'tradable' (can be bought and sold in the secondary market), 'debt instruments' (representing a loan to the government), and 'acknowledge debt obligations'.
3. **Evaluating Option (a):** Nationalised banks issue fixed deposit receipts, not government securities. While the government may guarantee some deposits, a bank certificate is not a G-Sec.
4. **Evaluating Option (c):** While State Governments issue securities (State Development Loans), they are not 'guaranteed by the RBI'. The RBI acts as the debt manager and agent for the government, but the sovereign guarantee comes from the government itself, not the RBI.
5. **Evaluating Option (d):** A document for withdrawal of money is typically a cheque or a treasury draft/voucher, which is a payment mechanism, not a debt instrument or security.