PC 21-Civil Accounts Manual

MCQs
1. Pick the Incorrect one
a. The be the Chief Accounting Authority of Min/Dept. concerned is the secretary of the Ministry/Department
b. The Head of Accounting Organisation in the civil Min/Dept. is Pr. CCA/CCA/CA
c. Responsible to prepare budget estimates, revised estimates etc. and their subsequent transmission to the budget
division in the Ministry of Finance is CGA
d. None of the given
2. Any addition to the list of cheque drawing DDOs included in the Scheme of Departmentalisation of Accounts of a
Min/Dept. is however required to have the specific approval of
a. CGA b. CCA
c. Financial Advisor d. President on the advice of the CAG
3. All receipts of the Min/Dept. shall also be finally accounted for in the books of the
a. Pr. Accts Officer b. Pay & Accounts Officer
c. Chief Controller of Accounts d. Accountant General
4. Under the departmentalized accounting system, the receipts and payments of each Min/Dept. of the GoI are handled by
the RBI or the Public/Private Sector Bank/s nominated for the particular Min/Dept. by the
a. CGA on the advice of the CAG b. CAG on the advice of the CGA
c. CGA on the advice of the RBI d. RBI on the advice of the CGA
5. The Section of the RBI that opens a bank account for Min/Dept. is
a. Department of Government and Bank Account (Central Office), New Delhi
b. Department of Government and Bank Account (Central Office), Mumbai
c. Central Accounts Section, Nagpur
d. Government Accounts Department (Central Office), Nasik
6. In favour of any newly constituted PAO or the CDDO, as long as the account is to be opened in the accredited bank without
any change involved in Focal Point Branch, the RBI, Department of Govt. and Bank Account (Central Office) Mumbai may
be approached by
a. CGA b. Pr. CCA/CCA
c. Financial Advisor d. Any of the above
7. Pick the correct one
a. The Principal Accounts Officer will obtain supply of cheque books required for use by the PAOs from the Central Stamp
Store, ISP, Nasik Road
b. The Principal Accounts Officer will obtain supply of cheque books required for use by the PAOs from the accredited
bank concerned wherever so authorized by the CGA
c. Both A&B
d. None of the given
8. Where a Senior Most Asst/Jr. Accountant has been authorised to sign cheques for the specified period of the absence of
the P.A.O, the PAO on his return will verify the bill passed or cheque drawn and renders a certificate to this effect to
a. Accountant General concerned b. Pr. Account Officer
c. CGA d. CAS, RBI, Nagpur
9. When advice is issued to CAS, RBI for payment of loan and grants to State Govt. by the Pr. AO of Min/Dept., the head
operated upon is
a. Dr. Final Head Cr 8658-Suspense RBI b. Dr. 8658-Suspense RBI, Cr. Final Head
c. Dr. 8658-Suspense RBI, Cr. 8675-RBI Deposit d. Dr. 8675-RBI Deposit, Cr. 8658-Suspense RBI
10. All advices for payments of the type through issue of advices to CAS, RBI should be entered in a register in form
a. CAM 17 b. CAM 17A
c. CAM 65 d. CAM 65A
11. A separate proforma account called "Departmentalised Ministries' Account in the General Ledger shall be maintained by
a. CGA b. IA&AD
c. Link Cell of Public Sector bank d. CAS, RBI, Nagpur
12. The CAS, RBI, Nagpur shall furnish Min/Dept.-wise balance for each month to the
a. CGA b. concerned Pr. CCA/CCA/CA
c. CAG d. concerned Pay & Accounts Office
13. Pick the correct one

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 i. Responsible for clearance from the Public/Other Nominated (Private Sector) Bank Suspense head, for the figures
reported by CAS, RBI regarding balances (total receipt/payment) transferred from RBI offices representing transactions
during the month in respect of that Min/Dept. is Principal Accounts Officer
ii. Responsible for effecting the necessary agreement of these figures in the Min/Dept. wise balances with the figures
under the Reserve Bank Deposits appearing in the monthly account rendered by them to the Office of the CGA is Principal
Accounts Officer
iii. The final adjustment for transferring the amount from the head '8675-Deposits with Reserve Bank'to'8999-Cash
Balance' will be done by the Principal Accounts Officer
iv. The responsibility for effecting reconciliation the balance of the Central Government as a whole with Reserve Bank will
be that of the Office of the CGA

a. i, ii and iii b. ii, iii and iv

c. i, ii and iv (CGA) d. All of the above
14. The rules governing allocation between capital and revenue expenditure may be prescribed by the
a. President on the advice of the CAG b. CAG on the advice of the President
c. CGA on the advice of the CAG d. CAG on the advice of the CGA
15. Pick the correct one
a. 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 capital
b. In the case of works of renewal and replacement which partake both of a capital and revenue nature, such expenditure
should be borne by both Capital and Revenue in accordance with rule extant on the subject
c. 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 reduction of capital expenditure
d. Capital receipts after opening of the project shall be treated as Capital and shall not be taken to revenue account except
under a special rule or order of Government

a. i, ii and iii b. ii, iii and iv

c. i, ii and iv (CGA) d. All of the above.
16. 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
a. Depreciation/Renewal Account b. Capital Account
c. Both Depreciation/Renewal & Capital Account d. Neither Depreciation/Renewal nor Capital Account
17. Pick the incorrect one
a. In theory, it is legitimate to make capital bear the charges for interest on money borrowed to finance the construction
of a new project before the project becomes revenue earning.
b. The charge of interest to capital in Govt. accounts is justified only when there would be undue disturbance in the
Govt.’s budgetary position by taking interest to revenue
c. The writing back of capitalised interest should be the first charge on any capital receipts or surplus revenues derived
from a project when commissioned.
d. None of the given
18. The capital expenditure met from sources other than revenue being described as
a. Capital Outlays b. Loan Outlays
c. Revenue Outlays d. Contingency Outlays
19. According to the sources from which they are funded, Reserves or Reserve Funds in Government Accounts may be
classified into
a. 5 categories b. 2 categories
c. 3 categories d. 4 categories
20. Where reserves are created out of the grants or out of moneys set aside by the Union or State Government from the
Consolidated Fund, the transfers to and the expenditure from the reserves require the approval of the
a. President b. Parliament
c. President of the advice of the CAG d. Government on the advice of CAG
21. Reserve Funds are located within
a. Public Fund b. Consolidated Fund
c. Public Account d. Contingency Fund
22. The value of materials, equipment and other commodities received from foreign countries etc.as aid, without involving
any cash inflow or outflow should be accounted under the major head

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. Cr-1606 and Dr-3606 b. Cr. 1606 and Dr. 8675
c. Cr 8658 and Dr. 8675 d. Cr. 8658 and Dr. 3606
23. Cash grant received from outside external/foreign sources are to be accounted for only by the
a. Controller of Aid Accounts and Audit, Department of Economic Affairs
b. Controller of Aid Accounts and Audit, Department of Expenditure
c. Controller of Aid Accounts and Audit, Department of Revenue
d. Controller of Aid Accounts and Audit of the concerned Ministry/Department
24. The Major Head under which cash grant received from outside external/foreign sources is accounted for
a. Regular revenue Head of the recipient Ministry/Department
b. Regular revenue Head of the recipient Ministry/Department and where no regular revenue head exists 0070
c. 0075 whether a regular revenue head exists or not
d. 1605 whether a regular revenue head exists or not
25. In the absence of a stay of execution of the decree, the Deposit should be deemed to be in satisfaction of the decree. If,
however, deposit of the decretal amount under orders of the Appellate Court, the payment made in pursuance of the
said order is treated as
a. Charged Expenditure b. Deposit
c. Partly charged and partly deposit d. Either charged or deposit as decided by the govt.
26. In cases of arbitral awards/decrees against State Govt. in disputes arising out of the acquisition of land, buildings and
property for Union purposes will be charged to
a. Consolidated Fund of India b. Consolidated Fund of State
c. both consolidated fund of India and State concerned
d. Initially it will be charged to Consolidated Fund of State and when reimbursed by the Union Govt. it will be charged to
the Consolidated Fund of India
27. Pick the correct one
i. Where a Court award is for a composite amount which is not capable of being split up as "Refunds of Revenue" and
"Other Expenditure", the entire amount of decree will be accounted for as charged expenditure
ii. Where an award is exclusively for the refund of security deposit or other revenue, the refund should be treated as
charged expenditure
iii. Where an award imposes an obligation to make a recurring payment, every recurring payment including those beyond
the date of the award would be expenditure charged on Consolidated Fund
iv. A Pension will either be wholly charged or wholly voted and the fact the same is allocable between different Govt. or
Departments, service under one or more of which does not by itself qualify for a "Charged" pension, should not make any
difference.

a. i, ii and iii b. ii, iii and iv

c. i, iii and iv d. All of the above
28. Permissible corrections to balances of earlier years in cases other than cases eligible for writes-off of balances from DDR
Heads closed to balance and classification thereof in accounts is known as
a. Proforma Correction b. Write Off
c. Abstract Correction d. Detailed Correction
29. For initiating any proforma correction approval with full justification is required from
a. Chief Accounting Authority concerned b. CGA
c. CAG d. Financial Advisor
30. State whether true or false
For Change of Classification, decision may be taken by Government in consultation with the Budget Division and
Controller General of Accounts on the advice of the CAG
a. True b. False
31. Certain increases or decreases in the opening balances of heads of accounts exclusively operated by them without routing
the adjustments through the monthly accounts or the Statement of Central Transactions of the year for which the Finance
Accounts are under preparation may be effected by
a. Defence and Home Affair b. Railway & Post and Telecommunication
c. Defence, Railway & Post and Telecommunication
d. Railway Board and Controller Aid, Account and Audit
32. Pick the correct one

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. Conversion of Grants in aid to Loans and vice-versa given during any earlier financial year to a State Govt. or U.T. Govt.
into a loan or conversion of a loan given earlier into Grant-in-aid with retrospective effect is done through proforma
Correction.
b. The raising or lowering down of balances under the two Minor Heads "Advances for purchase of other conveyances"
and "Other advances" wherever necessary, may be done by Pay & Accounts Officer in consultation with the Pr. AO
c. Both A&B
d. None of the given
33. Central Pension Accounting Office was set up on
a. 1st April 1991 b. 1st January 1991
st
c. 1 January 1990 d. 1st April 1990
34. The head of office will furnish a certificate to the Govt. servant regarding the length of qualifying service, emoluments
and average emoluments proposed to be reckoned for pension and retirement gratuity payments, before the date of
retirement
a. 6 months b. 10 months
c. 12 months d. 3 months
35. Pick the correct one
i. The employee should make representations, if any, with regards to certificate of qualifying service, emoluments and
average emoluments furnished to him before his retirement with a period of 15 days of receiving such certificate
ii. The period by which the Head of Office has to forward the pension papers to the PAO not later than six months before
the date of retirement of the Govt. servant
iii. The Head of Office after ascertaining and assessing the dues against the Government servant, shall furnish their details
to the PAO, one month in advance of his/her retirement
iv. While checking of the correctness of past emoluments in pension papers, the check should in any case not go back to
a period earlier than a maximum of 24 months preceding the date of retirement.

a. i, ii and iv b. ii, iii and iv

c. i, ii and iii d. All of the above
36. The final responsibility of the correctness of calculations and authorization of admissible pension rests with
a. Head of Office b. Head of Department
c. Pay & Accounts Officer d. Central Pension Accounting Officer
37. The PAO should issue the pension payment order/authorization at least in advance of retirement of the Government
servant
a. one week b. 15 days
c. 45 days d. one month
38. Pick the correct one
a. CPAO furnishes to each PAO annually a list of running serial numbers to be allotted to Pension Payment Orders to be
issued by them during the next calendar year (Jan to Dec) in the first fortnight of November
b. The PAO intimates the details of unused frozen numbers to the CPAO by the end of March
c. Both A&B
d. None of the given
39. Pick the correct one
i. Each PPO comprises of 12 digits ii. First 5 digits of a PPO reflect the PAO code number
iii. Digit number 6 & 7 reflect the year of issue iv. Digit 8 to 11 reflect the sequential number of a PPO

a. i, ii and iii b. ii, iii and iv

c. i, iii and iv d. All of the above
40. The CPAO dispatches the PPO to Link Branch of the Bank by
a. 10th of the month of retirement b. 7th of the month of retirement
th
c. 20 of the month of retirement d. 15th of the month of retirement
41. PPOs of the High Courts’ Judges are issued by
a. PAO, Ministry of Law & Justice b. AG of the State concerned
c. PAO, Supreme Court d. PAO, Ministry of Home Affairs
42. PPOs to Central Freedom Fighter are issued by the
a. PAO, Ministry of Law & Justice b. AG of the State concerned
c. PAO, Social Justice & Welfare d. PAO, Ministry of Home Affairs
43. The pension disbursing PAO will prepare a schedule of payments of pensioners desire to draw pension through PAO or
Money Order and send the same to the CPAO by
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 a. 10th of each month. b. 3rd of each month.
c. 7th of each month d. 15th of each month.
44. A switch over of payment channel of pension is not permissible
a. Treasury to Bank b. Bank to Treasury
c. PAO to Bank d. One PAO to another of same Min/Dep.
45. Where a Government Servant rendered service under more than one department in the Government of India, including
Railways, P&T and Defence Department as well as Union Territory Governments, the liability for pension charges will be
borne by
a. The Department from where the Govt. servant retired
b. The department where the Govt. servant has served the major period of his/her service
c. The Department to which the Government Servant permanently belongs at the time of retirement
d. All the department proportionately
46. The liability on account of pensionary benefits of All India Service Officers will be borne by the
a. Respective Ministry/Department of the Union Government
b. State government on whose cadre they are borne
c. Both Union Government and State government on whose cadre they are borne in the ratio of 25:75
d. Either Union government or State government on whose cadre they are borne as desired by the Govt. Servant
47. The colour of Special Seal Authority (SSA) issued by the CPAO in respect of pension of All India Service officer will be
a. Pink b. Red
c. Black d. Blue
48. Major Head to the charges on account of Swatantrata Sainik Samman Pension Scheme is
a. 2235 b. 2071
c. 2250 d. 2070
49. The payment of pension may be made by postal money order at the option of the pensioners, where the amount of
monthly pension including relief on pension does not exceed
a. ₹ 1000/- b. ₹ 1500/-
c. ₹ 2000/- d. ₹ 500/-
50. Pick the correct one
i. The cost of money order forms purchased for disbursement of pension purpose may be debited to the Major Head 2071
ii. Account of the M.O. forms will be submitted to the PAO on 15th of the each month
iii. The stock of the M.O forms will be verified half-yearly in April and October
iv. Half yearly stock verification report of M.O forms should be submitted to CA/Dy.CA

a. ii, iii and iv b. i, ii and iv

c. i, ii and iii d. All of the above
51. In respect of pensions through Postal Money Order for the Month of March remittance should be arranged on or after
the 1st day of April but not later than
a. 5th April b. 10th April
th
c. 12 April d. 7th April
52. In respect of pensioners who have not submitted a certificate for drawing pension through M.O the charges of
remittances will be deducted from the amounts of pension if the pension exceeds
a. ₹ 500/- b. ₹ 1000/-
c. ₹ 2000/- d. ₹ 1500/-
53. The charges for the payment of pension to the retired High Court Judges are to be borne by the respective State
Governments
a. Article 275 b. Article 289
c. Article 290 b. Article 292
54. The payment of Family Pension to ICS Family Pension Fund (Transferred) will be arranged by the PAO, Department of
Economic Affairs, New Delhi by operating the Major Head
a. 8658 b. 8680
c. 8678 d. 8679
55. Transactions arising in the accounts of the PAO which are adjusted by the accounts officer of another
government/department on cash settlement basis shall be accounted under
a. 8675-PAO Suspense b. 8658-PAO Suspense
c. 8786-PAO Suspense d. 8782-Other Remittance
56. Outward Claims Settlement Register is maintained in

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. CAM 53 b. CAM 55
c. CAM 56 d. CAM 54
57. Recoveries on account of Provident Fund or loans and advances in respect of other than Central (Civil) Min/Dept., will be
a. Booked to final head
b. initially booked under PAO Suspense head, and then cleared by remittance of cheque/draft as per the prescribed
procedure.
c. initially booked under PAO Suspense head, and then cleared by issuing advice to CAS, RBI
d. Any of the above with mutual consent of Ministries/Departments involved
58. Recovery made from pay bill towards Provident Fund subscription adjustable in the books of another Accounts Officer
will be accounted for as
a. Dr.8670 and Cr-8009 b. Dr.8009 and Cr.8658
c. Cr.8670 and Dr. 8658 d. Dr.8670 and Cr 8658
59. Pick the correct one
a. The PAOs may directly raise the Outward claims that require to be settled with State Accountants General.
b. The outward claims of State Accountants General which as a special arrangement are required to be settled with PAOs,
may be routed through the concerned Principal Accounts Office, except those relating to expenditure etc. on National
Highway
c. Both A&B
d. None of the given
60. Normally, reimbursement of transactions arising during a month, or last week of a month in the case of Supply
Department, is claimed by the
a. First week of the following month b. First fortnight of the following month
c. end of the following month d. end of the quarter following the month of transaction
61. All the Accounts Officers in Civil Ministries, State AG Railways, Defence, P&T should endeavour to settle transactions
arising during March, by raising debits duly supported with vouchers and schedules etc. against the Accounts Officers
concerned as
a. raising debits at weekly intervals b. raising debits at daily basis
c. raising debits at weekly intervals for transactions took place during first 3 weeks and for transactions on or after 25th
of March of the year, by a telegraphic/fax
d. raising debits monthly but submission on or before 3 rd of the following month.
62. Since payments against telegraphic/fax intimations made by one Accounts Officer to another are envisaged to be made
even where details are not received by the responding Accounts Officers, but supporting documents shall be despatched
by speed post on or before
a. 3rd of the following month b. 10th of the following month
th
c. 7 of the following month d. 12th of the following month
63. Pick the incorrect one
a. Where one Ministry /Department utilizes the services of another Central Ministry /Department as an executing agency,
the CGA issues annual budget allocation letter
b. A copy of such sanction has to be endorsed to the Accounts Officer of the functional department to enable him to keep
a note of this in the Expenditure Control Register maintained by him.
c. The PAO of the executing Ministry will book the expenditure under the relevant expenditure head against the Demands
for Grants of the functional Min/Dept. and furnish the monthly and progressive figures of expenditure to the Pr. Accounts
Office of the functional Min/Dept.
d. None of the given
64. Pick the correct one
a. The expenditure incurred by the Divisional Officers on behalf of other Civil Min/Dept. for which provision has not been
made under the Grants of C.PW.D. will be booked directly under the final head
b. The expenditure incurred on behalf of non-civil Ministries / other Governments will be booked under the Suspense
head "8658-Suspense Accounts-107-Cash Settlement Suspense Account.
c. Both A&B
d. None of the given
65. The claim for reimbursement of monthly expenditure will be made simultaneously by the Division against the concerned
Accounts Officer of the non-civil Min/Dept. or Accountant General of the State, as the case may be should be settled
within
a. one month of receipt b. a week of receipt
c. a fortnight of receipt d. as soon as possible

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

66. Responsible to watch the realisation of the payments from the concerned PAO/State AG to clear the suspense head in a
Division books
a. Divisional Officer b. PAO
c. Divisional Officer & PAO jointly d. Recipient Divisional Officer & PAO jointly
67. Pick the incorrect one
a. 8787-Adjusting of Account with Railways b. 8788-Adjusting of Account with Posts
c. 8789-Adjusting of Account with Defence d. 8790-Adjusting of Account with Telecommunications
68. Major Head for Adjusting of Account between Central and State Governments is
a. 8784 b. 8786
c. 8678 d. 8793
69. Authorised to recover the cost of stores for which they initially made payments by issuing advice to CAS, RBI
a. CCA of Department of Supply b. PAOs of Branch Offices of Department of Supply
c. Both CCA & PAOs of Department of Supply d. None
70. The PAO, Supply, will send advices to CAS, RBI Nagpur, and send a copy of the advice duly supported with vouchers and
other necessary details to the Accounts Officers of the Department of the consignee concerned on a
a. monthly basis b. quarterly basis
c. weekly basis d. fortnightly basis
71. The Department of Supply shall ensure that advices for the transactions during the close of a financial year are sent
telegraphically to the Central Accounts Section, Nagpur, so as to reach them by the
a. 15th of April or such date as prescribed by the RBI b. 7th of April or such date as prescribed by the RBI
c. 12th of April or such date as prescribed by the RBI d. 10th of April or such date as prescribed by the RBI
72. In respect of payments made abroad by the Indian Missions, which require cash settlement with other accounts
authorities, the Disbursing Officers should send to the
a. PAO, Ministry of External Affairs b. PAO, Department of Economic Affairs
c. PAO, Department of Expenditure d. PAO of Division Concerned
73. Pick the correct regrading conditions for proforma adjustment
a. Cases in which normal mode of settlement is through RBI, CAS, Nagpur i.e. settlement between Railways, P&T and
Defence departments inter-se and settlement between Railways and CCA, DEA could not be effected before 15th April or
as per date specified by RBI.
b. Aggregate amount of the transactions to be adjusted between the accounting units is Rs. 5 lakhs and above (gross
credit or gross debit).
c. The proposal reaches the CGA before the prescribed date, in terms of the schedule for closing of annual accounts laid
down by him/her
d. All of the above
74. Pick the correct one
a. Monetary settlement will not be resorted for transactions on account of supplies made or services rendered by one
Government to another for claims up ₹ 1000/- in each case
b. Claims relating to commercial departments/undertakings of a Government, monetary settlement will be carried out,
irrespective of the amount involved through cheque/DD
c. Both A&B
d. None of the given
75. Min/Dept. of Central Government will arrange payment of loans and grants-in-aid as well as payment of States' share of
income tax, Union excise duty, etc. through
a. CGA b. their Principal Accounts Officer
c. their Financial Advisor d. Budget Division, Department of Economic Affairs
76. The Principal Accounts Offices will arrange to credit the balance of State Government by debit to their Min/Dept. accounts
through CAS, RBI by
a. Dr-Final Head (3601/3602/7601 etc.) and Cr-8658 RBI Suspense
b. Dr- 8658 RBI Suspense and Cr-Final Head (3601/3602/7601 etc.)
c. Dr. 8658-RBI Suspense and Cr. 8675-RBI Deposit
d. Dr. 8675-RBI Deposit and Cr. 8658-RBI Suspense
77. Repayment of loans and payment of interest on it by the State Governments for loans received from the Government of
India will be arranged by the State AG or the Chief Accounting Authority of the State
a. by cash settlement (Cheque/Draft) b. though advice to CAS, RBI
c. Both A&B d. Either A or B as per the term of the loan
78. Pick the correct one

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. The AG of States are not normally authorised to debit the Central Government by sending advices to the RBI
b. AG can withdraw amount erroneously credited to Central Govt. an account of repayment of loans and interest in an
earlier advice by sending supplementary advice to CAS, RBI with a requisite certificate in this regard.
c. It is also certified that withdrawn are being furnished to Chief Controller of Account/Principal Accounts Officer of
Central Min/Dept. concerned
d. All of the above
79. Responsible for maintenance of detailed accounts of the loans sanctioned by the Central Government to the State
Governments and watching the recovery of instalments of principal and interest is
a. Chief Accounting Authority b. PAO
c. Principal Accounts Officer d. All of the above
80. The income tax recoveries effected from the bills paid by the treasuries/State Govt./HQ PAO/State Government
departmental office rendering compiled accounts to the AG shall be classified under 8658-TDS Suspense in
a. State Section of Accounts b. Central Section of Account
c. Fund Section of Account d. Either Central or State Section of Account
81. The claim for reimbursement on account of Payment of interest on Central Government securities at State Treasuries
shall be settled by
a. Pr. AO (Department of Expenditure) b. Pr. AO (Department of Economic Affair)
c. CGA d. CAS, RBI
82. Pick the correct regarding transaction on account of National Highways
i. The Executive Engineers of the State PWD will incur the expenditure out of State balances, and then incorporate it in
the monthly compiled accounts submitted to the State AG
ii. The AG State will booked the transaction under the major head for subsequent re-imbursement from National Highway
though cash settlement (Cheque/DD) under 8658-PAO (NH)
iii. The PAO (NH) shall settle the claim relating to the first three weeks of March without insisting on the vouchers, by
payment through cheque as usual.
iv. For the expenditure incurred during the fourth week of March, the AG by will send a telegraphic/fax advice to PAO
(NH) 29th or 30th of March.

a. i, iii and iv b. ii, iii and

c. i, ii and iv d. All of the above
83. The claim of National highways pertaining to March residual for reimbursement along with all the vouchers and
supporting documents for the entire claim of March shall be preferred by the A.G to PAO (NH) by
a. 15th April b. 10th April
st
c. 21 April d. the end of the April
84. Due to late receipt of monthly compiled accounts in AG, a system was put into use under which payments will be released
to State/UT in quarterly instalments, on the formal sanctions issued by the Ministry of Road Transport & Highways is
known as
a. Advance Payment System b. On Account Payment System
b. Deferred Payment System d. Proforma Payment System
85. The cheque for agency charges for executing the work of National Highways along with schedule showing the details of
the bills will be sent by RPAO directly to the State AG for credit to the accounts of the State Government on a
a. Weekly basis b. monthly basis
c. fortnightly basis d. quarterly basis
86. Pick the correct one
i. Even though the UT Governments with legislature have separate Consolidated Funds of their own, they do not have
separate balances with the Reserve Bank of India.
ii. The payment by issuing advice to RBI does not apply to them, and settlement in cash will be followed for the payment
of loans and grants, repayment of loans and payment of interest
iii. The Min/Deptt. of the Government of India will address the sanctions relating to payment of grants/loans to the UT
Governments with Legislature, to their Pr. AO with a copy to the concerned Finance Secretary and Accounts
Officer/Director of Accounts of the UT Govt.
iv. Loan or grant when over Rs. 5 crore, the Pr. AO of the Min/Dep sanctioning the loan or grant will advise RBI, New Delhi,
to transfer the amount by telegraphic transfer to the bank account of the concerned UT Govt. at their headquarters.

a. i, ii and iv b. i, ii and iii

c. ii, iii and iv d. All of the above

87. Pick the incorrect one

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. Government of India does not give Loans or grants to the Union Territory Administration under the Major head 3601
b. Instead budget provision is made by the Min/Dept. under the relevant functional major heads in the Revenue and
Capital sections of the Demands for Grants.
c. In the case of UT Administrations whose accounts have already been separated, the PAO of the concerned Central
Ministry / Department will book the expenditure directly against the Demands for Grants of the Min/Dept.
d. None of the given
88. Payment of loans and advances to parties other than State/U.T. Governments and Administrations shall be made a bill
on a simple receipt in a form similar to form
a. GAR 28 b. GAR 33
c. GAR 34 d. GAR 38
89. Pick the correct one
i. Normally, the repayment of a loan shall begin on the day of completion of one year from the date of its drawing,
ii. Repayment of loan and interest thereupon will be paid through specified number of equal monthly instalments of
principal.
iii. While the Government may sanction/allow suitable moratorium period for repayment of principal, no such
moratorium period shall be allowed for payment of interest.
iv. If the due date for repayment of instalment of principal or interest on a loan falls on Sunday or any other holiday, no
interest will be charged for such days, if the recovery is postponed on this account except when falling on 31st March, the
due date will the previous day.

a. i, iii and iv b. ii, iii and iv

c. i, ii and iv d. All of the above
90. Pick the correct one
i. Grants-in-aid are of two types-General and Specific
ii. No conditions are attached to grants for general purposes and the lump sum amount sanctioned by Government are
paid to local bodies and hence no utilisation certificate is required by the PAO
iii. Grants for specified purposes should on normally be utilised within one year after the date of issue of the sanction and
accordingly the utilization certificate should also ordinarily be due after a period of 12 months from the date of sanction
of the grant
iv. Where the expenditure is incurred out of the Central grants, by the State Govt. directly UC not required

a. i, ii and iii b. i, iii and iv

c. i, ii and iv d. All of the above
91. Where expenditure is incurred by the State Governments through local bodies or private institutions, the requisite UC
should be submitted by
a. local bodies or private institutions b. the State Government concerned
c. either by the local bodies or private institutions or the State Government concerned
d. No UC is required
92. Register of Grant-in-aid is maintained by PAO in
a. CAM 24 b. CAM 26
c. CAM 28 d. CAM 30
93. The period for the repayment of loans should be fixed with due regard to the purpose for which they are advanced and
it should be restricted to the minimum possible generally not exceeding
a. 10 years b. 30 years
c. 20 years d. 15 years
94. Where a longer period than 15 years for repayment is sought, prior concurrence should be taken from
a. CGA b. Budget Division, Department of Economic Affairs
c. President d. Finance Division, Department of Expenditure
95. In no case the period of the loan should exceed
a. 30 years b. 25 years
c. 20 years d. 50 years
96. Block loans for State Plan Schemes and other Plan loans (including loans for Centrally Sponsored Schemes) but excluding
loans for relending to industrial and commercial undertakings and individuals, when drawn in instalments, will be
consolidated and deemed to have been drawn in each year as on
a. 1st January b. 1st April
st
c. 1 July d. 1st October
97. The amounts annually payable by way of principal and interest would be recovered in

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 a. One annual instalment b. two equal half-yearly instalments
c. two monthly instalments d. four equal quarterly instalments
98. Pick the correct one
i. Small Savings Loans advanced during the year will be consolidated as on 1st October each year.
ii. The period of the loans will be 20 years and towards repayment of principal includes an initial moratorium of 5 years
towards the repayment of interest
iii. On expiry of the period of moratorium (5 years), the loans will be recovered in 20 annual equal instalments, payable
in four equal instalments on the 1st of July, October, January and March each year.
iv. The period of moratorium to PSUs should not extend in any case, beyond two years from the date of project going into
production, or in the case of programmes of expansion, beyond two years from the date of expanded project coming into
operation.

a. i, ii and iii b. i, iii and iv

c. ii, iii and iv d. All of the above
99. Pick the correct one
a. Request from PSU for funds for meeting working capital requirements should be considered only to the extent the
same cannot be had from the State Bank of India/Nationalised Banks
b. The period of repayment of working capital loans should preferably be restricted to two or three years. In no case,
however, the period of these loans should exceed 10 years
c. Both A&B
d. None of the given
100. In case of default, the higher/penal rate of interest above the normal rate of interest at which a loan is sanctioned should
not be less than
a. 2.75 percent b. 2.5 percent
c. 2 percent d. 2.25 percent
101. Waiver of recovery of interest at penal rate shall only be granted by an adequate level after obtaining advice of the
a. PAO b. Pr. AO
c. Financial Advisor d. CGA
102. Even a waiver of interest at penal rate is sanctioned, a minimum that should be recovered from the defaulting party as
penalty
a. ½ percent b. ¼ percent
c. 1 percent d. 1 ½ percent
103. A monthly report of defaults of principal & Interest should be sent by Min/Dept. by the end of the month following the
month to which the transactions relate to
a. Finance Division b. Expenditure Division
c. Loan & Advances Division d. Budget Division
104. Pick the correct one
i. In the case of a loan of which repayment has already commenced the revised rate of interest should be applied ad initio
only to residuary portion of the loan outstanding on the date of extension of its period.
ii. In cases where loans are to be sanctioned at a concessional rate, payment of Subsidy (Normal interest-concessional
interest) should be made condition upon prompt repayment of principal and payment of interest thereon by the
borrower.
iii. The date of drawal of loan by the borrower will be date on which he received cash, cheque or bank draft from the
drawing and disbursing officer
iv. Where the cheque or bank draft is sent through post, the date of posting should be treated as the date of disbursement
of the loan

a. I, ii and iii b. ii, iii and iv

c. i, iii and iv d. All of the above
105. Auditor's presentation of the general accounts of the Government to Parliament is
a. Appropriation Accounts b. Finance Accounts
c. Both Appropriation and Finance Account d. Auditor’s Report
106. State whether true or false
Finance Account of the Central Government comprises of the accounts of the Central Government as a whole and includes
transactions of Civil Min/Dept., Ministries of Defence and Railways and the Departments of P&T.
a. True b. False
107. The Personal Deposit Account shall be authorised to be opened by a special order by the concerned Min/Dept. (Pr. AO)
in consultation with
a. Financial Advisor b. CGA

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 c. Chief Accounting Authority d. CAG
108. No withdrawal from Public Deposit Accounts resulting in a minus balance therein will be ensured by
a. Administrator of Fund b. PAO concerned
c. Bank d. Pr. Accts officer
109. The Government Account, within which a Personal Deposit Account is located, is
a. Consolidated Fund b. Public Account
c. Contingency Fund d. Any of the given
110. Where work relating to payment etc. of a PDA is entrusted to an Administrator or the PDA holder, whether or not the
initial accounts, vouchers etc. shall be subject to post check by the concerned PAO may be determined by
a. Pr. CCA/CA b. Financial Advisor
c. CGA d. Chief Accounting Authority
111. Pick the correct one
a. Where post check is required to be exercised by the PAO the Deposit Accounts holder shall furnish the detailed monthly
account along with vouchers in support of the lump withdrawals/deposits made during each month, to the concerned
PAO
b. Where post check is not required to be exercised, the PAO will confine its check to the transactions of withdrawals
from the account to see that they do not exceed the balance at the credit of the account.
c. Both A&B
d. None of the given
112. In cases work of payment etc. relating to a PD Account may be entrusted to the PAO himself on behalf of administrator
of the fund, the responsible to examine the correctness of the receipts credited into the PD Account will be
a. the administrator b. the PAO
c. the administrator and the PAO jointly d. Bank
113. Pick the incorrect one
a. In the first week of every month, PAO shall furnish to the administrator of fund, a monthly account showing the opening
balance, receipts, payments and closing balance of the transactions at the end of the previous month
b. The PAO will also be responsible for the preparation of budget estimates and revised estimates in regard to the receipts
and payments under the PD Account in consultation with the administrator of the fund and furnishes it to Principal
Accounts Officer in the month of November
c. PD Account shall be subjected to scrutiny by the internal Audit Wing functioning under respective Ministry/Department
d. None of the given
114. In the PWD system Cash Remittances & adjustments between Officers rendering accounts to the same Accounts Officer
is operated to record transactions of Public Works Officers with Treasury and Other Officers of the Civil Departments
within the same circle of Account
a. 8670-101 b. 8670-102
c. 8782-101 d. 8782-102
115. Sub-heads fall under Major Head Remittance (8782) are
a. two b. three
c. four d. five
116. The P.A.O. will continue to follow the existing procedure for accounting of transfers between his books and divisional
books through "P.W. Remittances III-Other Remittances" only for the transactions advised by the
a. PAO (Department of Supply) b. PAO (External Affairs)
c. PAO (Department of Economic Affair) d. All of the above

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)

 Answer
1 2 2 4 5 6 7 8 9 10
C A B D B B C B A C
11 12 13 14 15 16 17 18 19 20
D B C A D C D A C B
21 22 23 24 25 26 27 28 29 30
C A A D B B C A B A
31 32 33 34 35 36 37 38 39 40
D A C B A C D A D C
41 42 43 44 45 46 47 48 49 50
B D A B C B D A C B
51 52 53 54 55 56 57 58 59 60
B A C D B A B D C A
61 62 63 64 65 66 67 68 69 70
C B A C B A D B C C
71 72 73 74 75 76 77 78 79 80
A A D C B A B D C A
81 82 83 84 85 86 87 88 89 90
B D A B C B D C A D
91 92 93 94 95 96 97 98 99 100
B C D B A D D B A A
101 102 103 104 105 106 107 108 109 110
C B D D B A B C B D
111 112 113 114 115 116 X X X X
C A B D C A
9. Final head such as 3601, 3602 6004, 7601 etc.,
When clearance memo regarding payment made by the RBI to the State concerned, the Pr. AO will (-) Cr 8658-RBI
Suspense and Credit 8675-RBI Deposit
10. CAM 17- Register of Public/Private Sector Bank Suspense/Reserve Bank Deposits
CAM 17A-Register of Reserve Bank Deposits
CAM 65-Register of Advices issued to Reserve Bank of India (C.A.S.) Nagpur.
CAM 65A-No such form is there
13. The final adjustment for transferring the amount from the head '8675-Deposits with Reserve Bank'to'8999-Cash Balance'
will be done by the Controller General of Accounts (CGA)
14. Class I-Funds accumulated from grants made by another Government and at times aided by public subscriptions
(Subvention fund from Central Road Fund,
Class II-Funds accumulated from sums set aside by the Union/State Govt. from the Consolidated Fund of India/State, as
the case may be
Class III-Funds accumulated from contributions made by outside agencies to the Union or State Governments,

As per nature reserves are of two categories-

(i) Interest Bearing and (ii) Non-Interest Bearing
21. Reserve Funds are located in Public Account under Sector J
22. When material so received is issued, Major Head 3606 is (-) debited and final Head concerned is debited.
27. Where an award is exclusively for the refund of security deposit or other revenue, the refund should be treated as refund
of revenue and not as charged one.
32. The raising or lowering down of balances under the two Minor Heads "Advances for purchase of other conveyances" and
"Other advances" wherever necessary, may be done by Principal Accounts Officer with the approval of the CGA
33. From FY 1990-91, the CAG was relieved from accounting of Pension
39. The 12th digit of a PPO is check digit for the purpose of computer
40. The CPAO dispatches the PPO to Link Branch of the Bank by 20th of the month of retirement and link branch forwards the
same to pension disbursing bank by the 23rd of the month of retirement.
45. The system of allocation of pension liability has been dispensed with w.e.f 01.04.1987
50. The stock of the M.O forms will be verified half-yearly in August and February
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
54. Major Head 8679-Adjusting Account with the Govt. of other countries
56. CAM 53-Register of Outward Claims
CAM 54-Outward Claims Forwarding Letter
CAM 55-Register of Inward Claims
CAM 56-Cheque/DD Forwarding Letter towards Claims
58. When cheque/draft is forwarded, Minus Credit 8658 and Credit 8670
The Recipient office will Debit 8670 and Credit 8009 (personal)
67. Adjusting Account with Telecommunication is 8795 and
Major Head 8790 is Accounts with States etc. (Railways)
68. Major Head 8784 & 8678 -No such major head
Major Head 8793- Inter State Suspense Account
84. Payment for the first quarter will be released soon after the 'Vote-on account' is passed by the Parliament. The fund
releases for the second and third quarters will be based on the actual expenditure of the previous quarter as well as the
likely expenditure in the succeeding quarter, as reported by the State Governments.
86. Loan or grant when over Rs. 1 CRORE (NOT 5 crore), the Pr. AO of the Min/Dep sanctioning the loan or grant will advise
RBI, New Delhi, to transfer the amount by telegraphic transfer to the bank account of the concerned UT Govt. at their
headquarters. This is applicable to repayment by UT as well.
89. Repayment of loan and interest thereupon will be paid through specified number of equal ANNUAL (NOT Monthly)
instalments of principal.
92. CAM 24- Establishment Check Register
CAM 26- Objection Book (Other Transactions) and Adjustments
CAM 30- Register and Broadsheet of Advances for Motor Car and Interest
97. Quarterly Instalment on 1st of July, October, January and March every year
98. The period of the loans will be 25 years and towards repayment of principal includes an initial moratorium of 5 years
towards the repayment of interest
On expiry of the period of moratorium (5 years), the loans will be recovered in 20 annual equal instalments, payable in
four equal instalments on the 1st of July, October, January and March each year.
99. The period of repayment of working capital loans should preferably be restricted to two or three years. In no case,
however, the period of these loans should exceed 5 years
105. Finance accounts include the Revenue and Capital Account, Public Debt account and other liabilities and assets worked
out from the balances in the accounts.
114. 8670-Cheques and Bill
8782-Remittance
115. The four sub-heads under the Major Head 8782 are
(i) Remittances into Treasuries/Banks
(ii) Public Works Cheques
(iii) Other remittances
(iv) Transfers between Public works / Forest Officers

Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)