SOUTHERN RAILWAY LDCE2011

LDCE2011SR

SOUTHERN RAILWAY

LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)

DATE: 05.01.2011                                 PAPER – I

GENERAL KNOWLEDGE AND ENGLISH, OFFICIAL LANGUAGE POLICY, GENERAL PRINCIPLES OF GOVT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS

BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

TIME: 3 HOURS                                                                                                                   MAXIMUM MARKS 150

IMPORTANT

THIS PAPER CONTAINS TWO SECTIONS – A & B. BOTH SECTIONS TO HAVE TO BE ANSWERED. SECTION A CARRIES 50 MARKS AND SECTION B CARRIES 100 MARKS.

SECTION A MAXIMUM MARKS -50

Q.I Write a short note in about 10 lines Required to answer only two questions  (2 X 5 = 10)

a. permanent seat for india in UN Security Council

b. IT boom in india

c. growth of infrastructure india

d. global warming

Q.II “ 21st century is expected to be a century in which china and india will set the momendtum for growth to the rest of the world” What are your comments on this statement? Answer should be in around 150 words – (1 x 10= 10)

QIII. Expand the following abbreiviations Answer any ten                     (10 x 1 = 10)

MACP

SEBI

BOOT

CISR

IMF

NSE

ISRO

BRIC – Countries

ONGC

UNDP

ILO

TRAI

Q IV Make sentences with any five of the following and give the meaning within the brackets    (5 x 2 = 10)

Make a clean breast of

Blow the trumpet

Few and far between

Splitting hairs

Take the wind out of the sails

Bury the hatchet

Apropos

Burn the mid-night candle

Q V Fill up the blanks with suitable preposition:                                                                       (5 x 1 = 5)

The absence ------ census data is taken advantage ----- various persons ------ each state ------- boost the estimates

------persons speaking their  language.

Q VI Who are the authors of the following books? Answer any five                                        (5 x 1 = 5)

My experiences with Truth

War and peace

Das capital

Treasure island

Pride and prejudice

Discovery of india

Geetanjali

SECTION B

THIS SECTION CONTAINS TWO PARTS – A & B.

ATTEMPT FOUR QUESTIONS TAKING ANY TWO FROM EACH PART

ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.

PART A                                                                                                             (25 x 2 = 50)

Q I. ‘The present procedure of apportionment of earnings and expenditure is not fair to southern railway with a limited lead” discuss.

Q II. Explain how the statistical compilations help in the main functions of traffic costing cell.

Q III (a) Write short notes on any two                                                                                                        (2 x 5=10)

i.         Zero based budgeting

ii.    action taken note

       iii. activity based costing

       iv. urgency certificate

        (b)  what are the salient features of the official language policy of Govt of india as per the official language Act 1963?                                                                                                                                                                              (15 x1 = 15)

Q IV (a) what are appropriation accounts?

         (b) annexure ‘J’ is the index of efficiency of accounts dept – discuss                               (18 + 7 = 25 )

PART B

Q V (a) what is the need for separate audit by representatives of the comptroller and audito general of india with ferenee to railway accounts?

        (b)  with more effective organization of internal auditing can this be dispensed with ? discuss in detail    

                                                                                                                                                                ( 12 ½  x 12½)

Q VI what steps you would suggest to control the expenditure both on establishement and non-establishment to improve the railway finances which are affected badly due to implementation of 6th pay commission award .                                                                                                                                      (25)

QVII a. what does performance budget mean?

           b. what particular reference to the railway give example from the budget classification and discuss their importance and utility                 (10 + 15)

QVIII a. write short notes on any two                                                                                                                                                                  (2x5=10)

i.      reserve bank suspense

              ii. railway convention committee

             iii. material modification

             iv. wagon turn around

          b. answer in one word                                                                                                               (15 x 1= 15)                                           

 i. the objective of maintaining suspense heads in railway accounting is to ensure a link between the systems of ----------- and -------------

 ii. on the expenditure side the revenue liability of the railways for a month are adjusted to working expenses thorugh suspense head ---------

 iii. consumption of materials obtained for specific purpose is watched through --------- account of the work.

 iv. to verify whether the financial return anticipated from a project at the estimate stage is actually realized or not railways conduct ---------- test.

 v. credit realized from surplus stock found in stock verification ----------- taken as reduction in demand (is taken as / not)

vi. any amount required to satisfy the award of arbitrators is a --------- expenditure.

 vii. the mechanism used for concurrent regulation of cash out go against cash content of budget is known as ------------.

 viii. the amount of all cheques drawn for the day is ----------------- to the head ‘ cheques and bills’.

 ix. chques and bills reconciliation is made between ------------ and -------------- and the balance represents --------------------

x. for preparation of passenger earnings budget the statistical statement used is known as -----------.

 xi. when as asset is repaired at comparatively high cost in preference to it being replaced it is known as -------------.

 xii. when stores are purchased for general purpose, the value of the material is debited to ------------ head.

 xiii. interest and maintenance charges on account of assisted sidings is classified as  -------------.

 xiv. implementation of exchequer control involves correct assessment of ---------------- and --------------- portion of sactioned annual budget.

 xv. the cost of replacement of ballast involving improved  type of ballast is charged to ------------.

                                                             &/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/&/             

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LDCE2011SR

SOUTHERN RAILWAY

LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)

DATE: 06.01.2011                                 PAPER – II

TIME: 3 HOURS                                                                                      MAXIMUM MARKS 150

IMPORTANT

TOTAL OF SIX QUESTIONS ARE TO BE ANSWERED.

TWO FROM PART –I TWO FROM PART – II AND TWO FROM EITHER PART –III –A OR PART –III B AS PER OPTIONS ALREADY GIVEN.

ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.

PART I

                                                                                                                                              50 MARKS

financial justification for expenditure and traffic costing:

answer any two

Q1. There is an overwhelming view that the cross subsidy of passenger traffic by freight traffic should be given up and there should be alignment of tariff with cost. how far our traffic costing system can be rlied upon to help taking decisions in such an important area? discuss in detail.                                                

Q2 a. explain the following methods for financial appraisal of a project with assumed figures;

       i. pay back method, ii. internal rate of return, iii. net present value                                                                                                             (3x4=12)

b. you are required to justify a gauge conversion project. what factors would you take in to consideration for working out the financial implications of the proposal?     

                                                                                                                                                                           (1x3=13)

Q3 a. what is meant by ‘sensitivity analysis’ in capital budgeting ?

      b. examine the scope of sensitivity analysis in a traffic survey report for the construction of a new railway line?                                                           (10+15=25)

Q4 a. expalain the concept of joint costs in railway operation.

      b. How such costs are apportioned among various activities of the railway?                                                                                                                       (10+15=25)

PART II

MANAGEMENT ACCOUNTING                                                                             MAX MARKS 50

Q 5 a.  discuss the important accounting ratios wihc are exmployed to judge the financial performance of a company.

       b.Are these or similar ratios employedin judging the performance of railways?                                                                                           (10+15=25)

Q 6 The ratios relating to the activities of National Traders Limited areas follows:

        debtors’ velocity – 3 months, stock velocity – 8 months, creditors velocity – 2 months, gross profit ration 25 %

        gross profit for the current year ended 31st Dec amounts to Rs 4 lakhs. closing stock of the year is Rs 10000/ above the opening stock. bills recoverable amount to Rs 25000/- and Bills payable to Rs 10000/-. find out the (a’ sales (b) sundry debtors (c) closing stock and (d) sundry creditors

Q 7 a. write in detail about the applications of breakeven analysis

       b. explain the difference between trofit centre and cost centre

       c. explain the difference between standard costing and job costing                                                                                                                                                      (13+6+6=25

Q 8. ABC Limited manufactures and sells 4 type of products under the brand names A

operating costs are variable cost as percentage of selling price. Product A – 60%, Product B – 68%, Product C- 80% and Product D- 40%. calculate the break even ppint for the products on the overall basis.

Q9 a. what do you understand by ‘life cycle costing’?

      b. what are the important areas where it can be employed?

      c. How is it an important over the normal costing system?                                                                                          (9+8+8=25)

PART III – A 

TRAFFIC ACCOUNTS, STATISTICS and ESTABLISHMENT

answer any two                                                                                                                                    (2 x 25= 50)

Q10 Checks in Traffic Accounts Office can not be final and have to be supplemented by checks by TIAs. discuss this with reference to atleast two  returns / documents received in traffic accounts office.

Q11. Write short notes on any four                                                                                                                  (4 x 6 ¼= 25)

a.        terminal charges, b. reconstruction of a delivery book of a station destroyed in fire c. engine performance statistics d. running allowance e. specific fuel consumption f. leave not due g. next below rule

Q12.  How far the present method of compilation and presentation of statistical date in railway help in effective management decision and contral on Indian railways?               

Q13 a. what are the different kinds of  leave admissible under the railway rules?

b.       what are the limits upto which leave can be accumulated and availed at a time?

c.        to what extent one can avail leave including extraordinary leave?                                                                                                             (10+7 ½ + 7 ½=25)

PART III (B)

Workshop And Stores Accounts And General Expenditure                                                       

answer an two questions                                                                                                    (2 x 25=50)                                            

Q 14. Explain the merits and demerits of the existing stock verification system  and give concrete suggestion for reater efficacy

Q15.a. what are the constituent elements of workshop manufacture suspense?

        b. what are the objectives of a job costing system as followed in a railway workshop

        c. how the above system is used to arrive at accurate costing figures?                                                                                                               (9+8+8=25)

Q16. write short  notes on any four     (4 x 6 ¼ = 25)

a.        risk purchase b. proforma on cost c. workshop general register d. CLW pattern of incentive e. rate contract f. price ledger g. under/over charges

Q17 a. examine the significance of drawing up completion reports for works

       b.what are the problems in finalizing the completion report within a reasonable period?

       c. what steps should be taken to expedite the process?                                                                                                        (9+8+8=25)

SOUTHERN RAILWAY ACCOUNTS LDCE 2012

LDCE FOR THE POST OF AFA (30 % GROUP ‘B’ SERVICE)

DATE: 22.05.2012                                 PAPER – I

GENERAL KNOWLEDGE AND ENGLISH, OFFICIAL LANGUAGE POLICY, GENERAL PRINCIPLES OF GOVT ACCOUNTING AND AUDITING WITH SPECIAL REFERENCE TO THE RAILWAYS

BOOKS AND BUDGET INCLUDING TRAFFIC BOOK

TIME: 3 HOURS                                                                                                                   MAXIMUM MARKS 150

IMPORTANT

THIS PAPER CONTAINS TWO SECTIONS – A & B. BOTH SECTIONS TO HAVE TO BE ANSWERED. SECTION A CARRIES 50 MARKS AND SECTION B CARRIES 100 MARKS.

SECTION A MAXIMUM MARKS -50

SECTION A                                                                                                                         

Q 1. write short notes on any four                                                                                                    (4 x 6 ¼ = 25)

a.        general anti avoidance rules (GAAR) as proposed in the Budget 2012-13

b.       slide of Indian rupee against US Dollar

c.        growth trends in India’s GDP during current year

d.       Basel III norms announced by RBI on banking industry

e.        dis-investment of Public Sector shares

f.         role of RBI in promoting economic development

g.       economic crisis in Europe

h.       role of TRAI with reference to development of telecom

Q II In each of the following questions out of four alternatives, choose the one which can  be substituted for the given words/sentence                              (5 x1= 5)

a.        An imaginary name assumed by an author for disguise

i. homonym. ii. nickname iii. pen name iv. pseudonym

b.       A place for sick people who need long periods of treatment or rest.

i.asylum, ii. sanatorium iii. clinic, iv. hospital

  c.        something that is likely to break apart easily

             i. harsh ii. brittle iii. thin iv. breakable

  d.        a person who eats too much

              i. omnivore ii. sensualist iii. glutton iv. reveler

 e.         belonging to the same country and having same interest and feelings

              i. native ii. Compatriot iii. Patriot iv. Comrade

Q III In each of the following questions out of the given alternatives choose the one, which is nearest meaning to the underlined part of the sentence                (5 x 1 = 5)

a.        The intrepid mountaineers who scaled the peak in winter should be congratulated.

i. bold, ii. courageous iii. vigorous iv. brave

     b.        The ubiquity of God cannot be questioned

                i. greatness ii. mystery  iii. omnipresence  iv. existence

     c.        the old man shows no sign of infirmity even though the is eighty years old

                i. indolence ii. fickleness iii. feebleness iv. lack of firmness

     d.        Of all the indignities man has suffered at the hands of man, slavery is the most degrading

                i. insult ii. atrocities iii. evils iv. dangers

     e.        the rapacious plunderers did not spare even the people living in the sums

                i. war like ii. barbarous  iii. avaricious iv. nomadic

Q IV In each of the following questions out of four alternatives choose the one which can be substituted for the given words/sentence (5x1=5)

a.        a process involving too much official formality

   i. Nepotism ii. Diplomacy  iii. Red-tapism iv. Bureaucracy

   b.       a formal written charge against a person for some crime or offence

             i. accusation ii. indictment iii. allegation iv. acrimony   

  c.        a person who is indifferent to both pleasures and pain.

             i. saint ii. asectic iii. stoic iv hermit

   d.       the line which a plough cuts in the ground

             i. vale iii. Trench  iii. Furrow iv. Trough

   e.       giving undue favours to one’s own kith and kin

            i. favouritism ii. nepotism iii. corruption iv. worldiness

Q V     Read the passage given below carefully. at the end of passage five questions along with various options for answers are given. Select the best option as the answer.

              (5  x 2=10)

            In most western countries, it is required that every young man, when his education is complete, shall give three or four years to military service. he goes in to barracks, is regimented and drilled, makes a unit in the standing army and passes out usually when his term is ended, an efficient soldier, to remain for the rest of his life ready at any moment to join in the armed defense  of his country.      

a.        in the passage the author opines that

i. military training is more important than general education

ii.military  training should precede college education since it builds up one’s  mental and physical abilities

iii.military training is as important as general training

iv.military training must be included in the curricula of schools and colleges

b.       military training is as important as mental training because

i.otherwise youngmen are useless

ii.it isngood that every scholar should also be an efficient soldier and available for the coutry’s defence

iii.one gets a chance to live in barracks

iv.war has become a daily affair

c.        every young man has to undergo military training  because he can

i.get a job after such training

ii.supplement his general education according to his wish

iii.join the army whenever his country needs to be defended in war

iv.learn and practice discipline

d.       in eastern countries like india, military training of students should be made compulsory

i.to fight anti-social elements

ii.to make youth serve the national during times of war and peace

iii.it can soleve the unemployment problem by providing more jobs

iv.to repress communal riots

e.        the author, wrting in the early part of 20th century, does not seem to talk about the need of military training for women because

i.women  education was a new thing then

ii.author thinks women are not physically strong enough to undergo military training

iii.women taking part in military service is a recent phenomenon

iv.according to author women should remain indoors

SECTION B

This section contains two parts (A) and (B). attempt four questions taking any two from each part. all questions carry equal marks of 25 each.

PART A                                                               25 X2= 50

Books and Budget Including Traffic Book

Q VI a. how is the earning budget of a railway formulated?

b.       what are the usefulness of various statistical data in this exercise?  

                                                                             10  + 15 = 25

Q VII write short notes on any four                                                                                                                                            

                                                                                                                                                                4 x 6 ¼ = 25

a.        traffic book Part B, b. cheques and bills reconciliation c. demands payable d. august review of budget d. over capitalization f. vote on account

Q VIII a. outline the main features and underlying principles of Zero based budgeting

           b.discuss the feasibility and limitations in adopting zero based budgeting in Indian railway                                                10+15=25

Q X. what are the constraints faced by Indian railways in recent years in balancing the annual budget? this may be discussed under the following heads.        25

a.        railways’ inability to pass on increase in cost to the users

b.       reduction in general budgetary support

c.        increase in input cost on account of salary wages and materials

d.       impact of al three factors on railway capital budget, fund balances, dividend liability

discussion should be supported by facts and figures

PART B                                              25 X 2 = 50

Q X write short notes answer any two                                                                                                               2 x 5= 10

i.a. railway’safety works, b. uneconomic branch lines c. single accounts current d. transfers without financial adjustment

ii.explain the idea behind having a Rajbasha. what are the salient features of the Official language Policy of GOI as per the Official Language Act 1963   (15)

Q XI a. what are the different “funds” maintained by Indian railway?

b.       briefly describe the nature of each of the funds and the manner in which they are operated.

c.        how their operation will have to be rationalized if it is proposed to run railways as a commercial undertaking                     6+9+10=25

Q XII a. describe the format in which the financial results and balance sheets of Indian railways are presented?

          b.how does the system followed by Indian railways differ from that of Public Limited Companies?          

                                                                                                                                                                      7 + 11 = 18

          c. Answer in one word any seven only                                                                                              7 x 1 = 7

  1. the accounts of the railway presented in such a form as to facilitate review of the railway as commercial undertaking is known as ------------------------

  2.  the account which exhibits the entire expenditure of a capital nature is known as -------------------------

  3. debit side of the general cash book represent -----------------------      

  4. all items of upaid wages will be credited to ---------------------------

  5. the earnings accrued at stations for the realization of which the home railway is responsible are consolidated in -----------------------

 6. errors noticed during verification of posting in tgraffic book Part A are corrected through ------------------------

 7. the amount of all cheques drawn for the days is credited to the head --------------------------

 8. all transfer transactions between railways are adjusted thorguh -----------------------

  9. transactions between the railway ministry and other ministries settled through central accounts section of Reserve Bank Of India are known as ---------------------------

Q XIII a. What are the specific duties of the director of audit with regard to the audit of the annual accounts of the zonal railway?                  18 M

           b.answer by filing the blanks Any seven only

           i. the from in which the proposals of Govt in respect of sums required to meet expenditure from Consolidated Fund of India is subtted to Lok Sabha is -----------------

           ii. ----------------- as passed by parliament as assented by the president form the basis for budgetary allocations to railways

           iii. the suspense head operated to watch book adjustments of inward transactions from the books of the Govt dept is ------------

           iv. the suspense head operated to watch payments to firms from whom materials are received and taken inot stock before payments are made is ------------

           v. unpaid items other than unpaid wages of railway staff are allowed to remain in the register deposits for a period of -------------years.

           vi. the suspense head used to book inter departmental transactions awaiting acceptance is -----------------.

           vii. railway budgeting is done on ------------------ (gross/net ) basis

           viii. demand for excess grant presented to parliament is based on recommendation of ----------------

           ix. exchequer control is a mechanism to ensure that --------------------- portion of budgetary allocation is not exceeded. 

LDCE2012SR

SOUTHERN RAILWAY

LDCE FOR THE POST OF AFA (GROUP ‘B’ SERVICE)

DATE: 23.05.2012                                 PAPER – II

TIME: 3 HOURS                                                                                                                              MAXIMUM MARKS 150

IMPORTANT

TOTAL OF SIX QUESTIONS ARE TO BE ANSWERED.

TWO FROM PART –I TWO FROM PART – II AND TWO FROM EITHER PART –III –A OR PART –III B AS PER OPTIONS ALREADY GIVEN.

ALL QUESTIONS CARRY EQUAL MARKS OF 25 EACH.

PART I

                                                                                                                                                                                    50 MARKS

FINANCIAL JUSTIFICATION FOR EXPENDITURE AND TRAFFIC COSTING:

Answer any two

Q I. how  far the present traffic costing methodology is effective in determining realistically the financial viability of introduction of New trains and augmentation of existing services?                                                                   25 M

Q II a. with regard to goods traffic what is the traffic costing information available?

        b.how do they help in investment decisions ?                                                                          12 ½ + 12 ½ = 25 M

QIII a. Due to constraints of resources, railways need to tap alternative sources for capital expenditure. in this regard, discuss the schemes like BOLT, BOOT and other modes of PPP in furthering this purpose.

        b.What are the constraints faced by the railways in attracting such achievement?              18 + 7 = 25 Marks

Q IV Write short notes  ( any four)

a.        socially viable projects, b. apportionemtnt of joint costs, c. DCF Technique, d. productivity test, e. make or buy decision, f. two packet system of tendering, g. financial justification for reconditioning a machine.

                                                                                                                                                   4 X 6 ¼ = 25 Marks

PART II

MANAGEMENT ACCOUNTING

Answer any two questions

                                                                                                                                                2 x 25 = 50 Marks

Q V (a) What do you understand by the terms Budget and Budgetary control?

       (b) What are the advantages of Budgetary Control?

       (c) Calculate the breakeven sales from the following data for a company producing three products.

Product	Sales Rs	Variable Cost Rs
A	10000	6000
B	5000	2500
C	5000	2000
Total	20000	10500

               total fixed cost amount to Rs 5700/-                                                                                   9 + 9 + 7 = 25 Marks

Q VI (a) What are the factors that should be considred setting up  i. material price standard, ii. material usage standard, iii.  labour time standard

         (b) ABC limited has prepared the following cost estimates per unit for the manufacture of a sub-component hitherto purchased from an outside supplier at Rs 32/- per unit; ordering inspection cost are estimated at Rs2/- per unit. the (company) firm has spare capacity and no extra cost will be required to be incurred. the annual requirement is 10,000 units.

         Direct material                                                       = Rs 10/-

         Direct labour                                                         = Rs 14/-

         Variable overheads                                        = Rs 6/-

         Fixed factory overheads                                = Rs 6/-

Should the component be made or purchased from outside?                                                       15 + 10 = 25 Marks

Q VII (a) Alpha Manufacturing company has drawn up the following profit and loss account for the year ended 31st March

to opening stock	26000	by sales	160000
to purchases	80000	by closing stock	38000
to wages	24000
to  manufacturing expenses	16000
to gross profit	52000
c/d	198000		198000
to selling and distribution expenses	4000	by gross profit b/d	52000
to administrative expenses	22800	by compensation for acquisition of land	4800
to value of furniture lost by fire	800
to general expenses	1200
to net profit	2800
	56800		56800

calculate the operating ratio and the ratio of operating net profit to net sales.

(b) “Fixed costs are really variable. The more you produce the less they become” discuss.  18 + 7 = 25 Marks

Q VIII (a) A firm has made credit sales of Rs 240000/- during the year. The outstanding amount of debit at the beginning and at the end of the year respectively was Rs 27500/- and Rs 32500/- Determine the debtors turn over ratio.                                                                                                                                                       

(b) what is the pay back period?

(c ) Also discuss the utility of the pay back period in detetmining the internal rate of return.         8 +6+11=25 Marks

Part III (A)

Answer any two                                                                                                                                   2 x 25 = 50 Marks

Q IX Bring out the brief checks exercised in the Traffic Accounts Office in respect of the following

a. Collected tickets, b. concession vouchers, c. paid on charges, d. siding statements            4 x 6 ¼ = 25 Marks

Q X (a) How far the present method of compilation and presentation of statistical data help management decision and control in Indian Railways?

  (b) What is specific fuel consumption?

 (C ) How is it computed for diesel and electric traction?

                                                            12+5+8=25 Marks    

Q XI (a) What are the  Rules and Conditions relating to calculation and Payment of Foreign Service Contribution in respect of employees going on deputation?

         (b) What are the fundamental rules relating to fixation of pay?                      12 ½ + 12 ½ = 25 Marks

Q XII Write short notes on any four:

    a. workman’s compensation act, b. operating ratio, c. annual statistical statement No40, d. pension fund, d. apportioned earnings, and f. accounts office debits

                                                                                                                                                4 x 6 ½ = 25 Marks

PART III (B)

                WORKSHOP AND STORES ACCOUNTS AND GENERAL EXPENDITURE

Answer any two questions

Q XIII (a) Explain the significance of Purchase Grant and Closing Balance of Stores, in Stores Budgeting and describe the measures taken for regulating both

             (b) Describe the procedure followed in accounting for stores received in a workshop form the stores depot, from the time they are received in the shop to the time they are finally adjusted against the jobs in which they have been consumed.                                                                                                                               12 ½ + 12 ½ = 25 Marks

Q IV Write short notes on any four:

     a. transfer pricing, b. fall clause, c. risk tender with reference to stores contract, d. variation in quantities in works contracts. Marginal costing, e. CLW pattern of incentive scheme

                                                                                                                                                                4 x 6 ½ = 25 Marks

Q XV “The workshop outturn statements truly and effectively reflect shop activity and  efficiency of workshop accounts office”. Discuss with particular reference to checks to be exercised in the preparation of various out turn      avoids outturn statements..                                                                              

                                                                                                                                                                25 Marks               

Q  XVI  (a) What is stock adjustment account?

               (b) What are the various items adjusted through this account?

              ( c) Can inventory turnover ratio be considered as reliable index of inventory management?