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Key MCQ Practice Finance Code Volume 2, Classification of Expenditure & Revenue, Plan Heads, Primary Units.pptx

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TypeCommercial Circular
Topicreservation
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Summary

Major Head, Sub Major Head, Minor Head, Detailed Head & Object Head

Text of the circular

Finance Code - Volume 2 - Classification 
Expenditure & Revenue, Plan Heads & Primary 
Units

Question -1
●
Total Number of erstwhile Demands in in Major Head 3002 in 
Indian Railways
A.
15
B.
16
 
C.
12
 
D.
14

Answer - 1
C – 12 (erstwhile Demands 03 to 14) 
12  - 03 to 14 erstwhile Demands are called as OWE – Ordinary Working 
Expenses (or SMHs – Sub Major Heads 1 to 12 of Major Head 3002/3003 – 
Indian Railways Working Expenses 
15 – Total number of Erstwhile Demands 01 to 15 – GWE – Gross Working 
Expenses  
16 - Total Number of erstwhile Demands (Both Revenue & Capital) are 16

Question - 2
Single Demand Number assigned to Ministry of Railways for the FY 
2024-25 is ______ 
A. 85 
B. 84 
C. 86 
D. Not yet assigned

A. 85

Financial Year
Single Demand 
No
2017-18
80
2018-19
81
2019-20
82
2020-21
83
2021-22
84
2022-23
85
2023-24
85
2024-25
85

Question - 3 
PH 82 – Transfer to SRSF – Special Railway Safety Fund.
 SRSF is replaced as __________ (recently)
A. RRSK – Rashtriya Rail Suraksha Kosh  
B. RSF – Railway Safety Fund 
C. No Change 
D. None of these

Answer - 3
A. RRSK  
●
Dedicated Fund for Railway Safety 
●
Established in the year 2017-18 
●
On the recommendations of High Level Safety Review Committee, 2012 headed by Shri Anil 
Kakodkar, former Chairman of Atomic Energy Commission 
●
Initially for a Five years 
●
Again it was extended to another five years from 2022-23 to 2026-27 
●
Though it is not stated, RRSK as Second SRSF - is in the continuation of SRSF – Special 
Railway Safety Fund (2001 to 2008)

Question - 4 
The Finance Code Vol. 2 - Revised Accounting Classification is 
effective from the Year _____ duly replacing _________________
A. 1969  & Appendices 1 to 3 of General Code. 
B. 1979 & Appendices 1 to 3 of Accounts Code Volume 1
C. 1989 & Appendices 1 to 3 of Accounts Code Volume 1
D. 1979 & Appendices 1 to 3 of General Code

Answer - 4
D. 1979 (1st April) 
Replacing the Appendices 1 
to 3 of  General Code

Question - 5 
Finance Code -2 – Classification of Accounts of Expenditure & 
Earnings. Earnings is renamed as ____
A. Income 
B. Profit 
C. No Change
D. None of these

Answer - 5
D. None of these
The Correct answer is Revenue
Earnings = Revenue minus Expenditure 
Revenue = Total amount of money made in Sales. 
Now:
Abstract X – Coaching Revenue
Abstract Y – Goods Revenue 
Abstract Z – Sundry Other Revenue

Question - 6
●
The erstwhile Demand No.12 has ______ & _____ 
A. Abstracts K & M 
B. Abstracts L & O 
C. Abstracts K & N 
D. Abstracts L & N

Answer - 6
C. Abstracts K & N
Abstract K – Misc. Working Expenses 
Abstract N - Suspense

Question - 7
●
The erstwhile Demand No.13 has ______ & _____ 
A. Abstracts K & M 
B. Abstracts L & O 
C. Abstracts K & N 
D. Abstracts L & N

Answer - 7
B. Abstracts L & O
Abstract L – PF, Pension & Other Retirement benefits 
Abstract O – Govt Contribution to Defined 
Contribution Pension Scheme (NPS)

Question - 8
●
The erstwhile Demands 01 & 02 are comes under Major Head No 
_____
A. 1001
B. 3001 
C. 3002
D. 5002

Answer - 8
B. 3001
(Indian Railways Policy formulation, 
Direction,Research & Other Misc 
organisations)

Revenue 
Receipts
X,Y & Z
Ordinary 
Working 
Expenses 
(3 to 14)
Capital 
Expenditure 
(16)
Commercial 
Lines
1002
3002
5002
Strategic
 Lines
1003
3003
5003

Question - 9
●
What is the correct sequence in Classification of Revenue Expenditure ?
 
A. Erstwhile Demand No, Sub Head, Minor Head, Detailed Head & Object Head
B. Major Head, Sub Major Head, Minor Head, Detailed Head & Object Head
C. Erstwhile Demand No, Minor Head, Sub Head, Detailed Head & Object Head 
 
D. Sub Major Head, Minor Head, Sub Head, Object Head & Detailed Head

Answer - 9
●C. Erstwhile Demand No, Minor Head, Sub 
Head, Detailed Head & Object Head
 
(Though Demand Nos are replaced by Sub 
Major Heads, the classification still aligns 
with the erstwhile Demand Nos only)

Question - 10
The SMH – Sub Major Head Number for erstwhile Demand No. 12 – 
Misc. Working Expenses is _____
A. 08

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