Hi friends, here is the DOP AAO Exam 2018 Paper-1 Solved. India Post Assistant Accounts Officer (AAO) Exam was last held in the year 2018.
Paper-1 consists of Financial Rules and Procedures & Book Keeping. Here we discuss the Questions and Answers based on the official key released by the Department of Posts.
Limited Departmental Competitive Examination Assistant Account Officer – 2018
Pattern of Paper-1: Financial Rules and Procedures & Book Keeping
Time allowed : 3 hrs
Maximum marks : 100
Mode of Exam – Open Book Examination with following Books Allowed
- Swamy’s Compilation of General Financial Rules, 2017.
- Swamy’s Compilation of P&T Financial Handbook Vol. I
- Appendix V to the Postal Account Manual Vol. 1
- Government Accounting Rules, 1990
Schema of Question Paper is of three parts
- Part A – One Compulsory question of 20 marks
- Part B – Three(3) questions of which two(2) are to be attempted. 20 marks each for the two attempted questions
- Part C – Three(3) questions of which two(2) are to be attempted. 20 marks each for the two attempted questions
- Quote Rules in support of your answers
DOP AAO Exam 2018 Paper-1 Questions
Part A – Accountancy Questions
Q. No.1 (a) From the following balances extracted from the books of a trader, prepare Trial Balance as on 31st March, 2016 : (10 Marks)
| Cash in hand | 4200 |
| Cash at Bank | 16800 |
| Bills Receivable | 18000 |
| Bills payable | 16000 |
| Sundry Debtors | 24600 |
| Sundry creditors | 32400 |
| Capital | 50000 |
| Drawing | 18000 |
| Sales | 105000 |
| Purchase | 75000 |
| Carriage Inward | 2700 |
| Salaries | 12000 |
| Advertisement | 2400 |
| Insurance | 1600 |
| Furniture | 7500 |
| Stock | 18600 |
| Office Rent | 2000 |
Solution: Q. No. 1 (a)
Trial Balance
| Name of the Account | Balances (Rs.) (Debit) | Balances (Rs.) (Credit) |
| Cash | 4200 | |
| Bank | 16800 | |
| Bills Receivable | 18000 | |
| Bills payable | 16000 | |
| Sundry Debtors | 24600 | |
| Sundry creditors | 32400 | |
| Capital | 50000 | |
| Drawings | 18000 | |
| Sales | 105000 | |
| Purchases | 75000 | |
| Carriages Inward | 2700 | |
| Salaries | 12000 | |
| Advertisement | 2400 | |
| Insurance | 1600 | |
| Furniture | 7500 | |
| Rent | 2000 | |
| Stock | 18600 | |
| TOTAL | 203400 | 203400 |
Q. No. 1 (b) Rectify the following errors:- (5 Marks)
Cash sales Rs.16,000
(i) were not posted to sales account.
(ii) were posted as Rs.6,000 in sales account.
(iii) were posted to commission account.
Solutions- Q. No. 1 (b)
(i) _____________________________________________
Suspense A/c Dr. 16,000
To Sales A/c 16,000
(Cash sales not posted to sales account now rectified)
(ii) _____________________________________________
Suspense A/c Dr. 10,000
To Sales A/c 10,000
(Cash sales Rs.16,000 were posted to sales account as Rs.6,000, now rectified)
(iii) _____________________________________________
Commission A/c Dr. 16,000
To Sales A/c 16,000
(Cash sales posted to commission account instead of sales account now corrected)
Q. No. 1 (c) From the following particulars of Asha & Co. prepare a bank reconciliation statement on December 31, 2014. (5 Marks)
Overdraft as per passbook 20,000
Interest on overdraft 2,000
Insurance Premium paid by the bank 200
Cheque issued but not presented for payment 6,500
Cheque deposited but not yet cleared 6,000
Wrongly debited by the bank 500
Solution Q. No. 1 (c)
Bank Reconciliation Statement of Asha & Co as on December, 31, 2014
| Particulars | (+) Amount Rs. | (-) Amount Rs. | |
| 1. | Overdraft as per passbook | 20,000 | |
| 2. | Interest on overdraft | 2,000 | |
| 3. | Insurance premium paid by the bank | 200 | |
| 4. | Cheque issued but not presented for payment | 6,500 | |
| 5. | Cheques deposited but not yet cleared | 6,000 | |
| 6. | Wrongly debited by the bank | 500 | |
| 7. | Balance as per the cash book (overdraft) | 26,500 | 26,500 |
PART B
Q. No.2 (a) Describe the procedure for procurement of goods and services through e-Market Place (GeM). (15 Marks)
Solutions: Q. No.2 (a)
Rule 149 of Rule GFR, 2017 – DGS&D or any other agency authorized by the Government will host an online Government e-Marketplace (GeM) for common use Goods and Services. DGS&D will ensure adequate publicity including periodic advertisement of the items to be procured through GeM for the prospective suppliers. The Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services available on GeM. The credentials of suppliers on GeM shall be certified by DGS&D. The procuring authorities will certify the reasonability of rates. The GeM portal shall be utilized by the Government buyers for direct on-line purchases as under :-
(i) Up to Rs.50,000/- through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period.
(ii) Above Rs.50,000/- and up to Rs.30,00,000/- through the GeM Seller having lowest price amongst the available sellers, of at least three different manufacturers, on GeM, meeting the requisite quality, specification and delivery period. The tools for online bidding and online reverse auction available on GeM can be used by the Buyer if decided by the competent authority.
(iii) Above Rs.30,00,000/- through the supplier having lowest price meeting the requisite quality, specification and delivery period after mandatorily obtaining bids, using online bidding or reverse auction tool provided on GeM.
(iv) The invitation for the online ebidding/ reverse auction will be available to all the existing Sellers or other Sellers registered on the portal and who have offered their goods/services under the particular product/service category, as per terms and conditions of GeM.
(v) The above mentioned monetary ceiling is applicable only for purchases made through GeM. For purchases, if any, outside GeM, relevant GFR Rules shall apply.
(vi) The Ministries/Departments shall work out their procurement requirements of Goods and Services on either “OPEX” model or “CAPEX” model as per their requirement/ suitability at the time of preparation of Budget Estimates (BE) and shall project their Annual Procurement Plan of goods and services on GeM portal within 30 days of Budget approval.
(vii) The Government Buyers may ascertain the reasonableness of prices before placement of order using the Business Analytics (BA) tools available on GeM including the Last Purchase Price on GeM, Department’s own Last Purchase Price etc.
(viii)A demand for goods shall not be divided into small quantities to make piecemeal purchases to avoid procurement through L-1 Buying / bidding / reverse auction on GeM or the necessity of obtaining the sanction of higher authorities required with reference to the estimated value of the total demand.
Question 2(b) Write short notes on any one of the following: – (5 Marks)
(i) Excess Expenditure
(ii) Remission of Revenue
Solutions
Excess Expenditure. – Rule 61 of GFR, 2017
1. The Accounts Officer shall not allow any payment against sanctions in excess of the Budget provisions unless there is specific approval of the Chief Accounting Authority.
2. The Financial Advisers and Chief Accounting Authority, before according concurrence for excess under any Head, shall ensure availability of funds through Reappropriation/ Supplementary Demands for Grants . (Refer Appendix 10)
Remission of Revenue – Rule 18 and 19 of GFR, 2017
A claim to revenue shall not be remitted or abandoned save with the sanction of the competent authority.
(1) Subject to any general or special orders issued by the Government Departments of the Central Government, Administrators and Heads of Departments, other than those in the Department of Posts, shall submit annually on the 1st of June to the Audit Officer and the Accounts Officer concerned, statements showing the remissions of revenue and abandonment of claims to revenue sanctioned during the preceding year by competent authorities in exercise of the discretionary powers vested in them otherwise than by law or rule having the force of law, provided that individual remissions below Rupees one thousand need not be included in the statements.
(2) For inclusion in the statements referred to in Rule 19 (1) above, remissions and abandonments should be classified broadly with reference to the grounds on which they were sanctioned and a total figure should be given for each class. A brief explanation of the circumstances leading to the remission should be added in the case of each class.
Q. No.3 What do you understand by the term “Last Pay Certificate”? When and for what purpose is it issued? What information is contained in it? Describe the procedure in detail. (Marks: 20)
Or
Write short notes on the following: (2X10 = 20 Marks)
(a) Balancing of Cash Book
(b) Contingent Charges and their classification
Solutions: Last Pay Certificate – Rule 227 and Appendix 9 of FHB Vol I
When the name of a Government servant appears for the first time in a Pay Bill, the bill shall be supported by a Last Pay Certificate in the form prescribed for the purpose; if the Government servant did not Previously hold any post under the Government, or is re-employed after resignation or forfeiture of past service, a certificate by the Drawing and Disbursing Officer to the effect that the medical certificate of fitness in the prescribed form, has been obtained in respect of the Government servant, must accompany the bill conformity with, and if so required by, any rule or, order governing the conditions of the service to which he belongs.
The form of Last Pay Certificate prescribed and the detail instructions issued for its preparation are reproduced in Appendix-9. Last Pay Certificates of Government servants whose names do not appear in the Establishment Pay Bills should be filed by the Head of the office with the documents pertaining to the Service Book or Service Roll.
In all cases of transfers, the responsibility for obtaining his own copy of the Last Pay Certificate from his last Disbursing officer shall rest with the Government servant concerned.
(a) Balancing of Cash Book – FHB Rule 123-125
The cash book must be closed and balanced on the 10th and 20th and on the last working day of each month, but when the transactions are numerous, a weekly or even a daily balancing is recommended.
(b) Contingent Charges and their classification : Rule 331 and 333 of FHB Vol I
Q. No.4 Write comments on any five of the following: (5x 4= 20 Marks)
(i) Standards of Financial Propriety
(ii) Public Account
(iii) Periodical Increment Certificate
(iv) Buy back offer
(v) Non tax Revenue
(vi) Vote on Account
(vii) Capex Model.
Solutions: Q. No.4
(i) Standards of Financial Propriety – Rule 60 FHB Vol I
(ii) Public Account – Rule 6(Chapter II of FHB Vol I)
(iii) Periodical Increment Certificate – Rule 306 and 307 of FHB Vol I
(iv) Buy back offer – Rule 176 GFR
(v) Non tax Revenue – Rule 46 GFR
(vi) Vote on Account – Rule 55 GFR
(vii) Capex Model – 2(xxxi) GFR
PART C
Q. No.5(a) Explain in brief criteria for determining whether expenditure should be classified under Heads of Capital Section or Revenue Section of Consolidated Fund.
(b) What is the criteria for write-off of balances from Debt, Deposit, Suspense and Remittance heads closed to balance and classification thereof in Accounts.
(2X10 = 20 Marks)
Solution: 5(a) – Rule 30 of GAR 90
5(b) – Rule 38 of GAR 90
Q. No.6 Answer the following questions :- (10 x 2 = 20 Marks)
(i) What is Major head for booking all Postal Revenue Receipts?
(ii) What is Major head for booking all Postal Revenue Expenditure?
(iii) What is Major head for booking all Capital Layout on Postal Services?
(iv) What is Major head for booking of Income Tax recovered from the salaries of office employees?
(v) What is Major head for booking of salary expenditure of P & T Audit Office?
(vi) What is Major head for booking all GPF payment to Postal Employees?
(vii) What is Major head for booking of HBA Advances recovered from the salary of the employees?
(viii) What is Major head for booking all type of National Savings Deposits?
(ix) What is Major Head for booking suspense accounts (Postal)?
(x) What is the Major and Sub Major Head for booking the expenditure on Agency Services?
Solution- No.6
(i) MH-1201
(ii) MH-3201
(iii) MH-5201
(iv) MH-0021
(v) MH-2016
(vi) MH-8009
(vii) MH-7601
(viii) MH-8001
(ix) MH-8661
(x) MH-3201, SMH -03
Q. No.7 Write short notes on following. (5 x 4= 20 Marks)
(i) Accounting Period
(ii) Going Concern Concept
(iii) Revenue Recognition
(iv) Accrual Accounting
(v) Book Keeping
Solutions Q. No.7
(i)Accounting Period Concept
Accounting period refers to the span of time at the end of which the financial. statements of an enterprise are prepared, to know whether it has earned profits incurred losses during that period and what exactly is the position of its assets and liabilities at the end of that period, Such information is required by different use at regular interval for various purposes, as no firm can wait for long to know financial results as various decisions are to be taken at regular intervals on the basis of such information.
The financial statements are, therefore, prepared at regular interval, normally after a period of one year, so that timely information is made available to the users. This interval of time, is tailed accounting period.
The Companies Act 1956 and the Income Tax Act require that the income statements should be prepared annually.
(ii) Going Concern Concept
The concept of going concern assumes that a business firm would continue to out its operation indefinitely, i.e. for a fairly long period of time and would not be liquidated in the foreseeable future. This is an important assumption of accounting as it provides the very basis for showing the value of is in the balance sheet.
An asset may be defined as a bundle of services. When we purchase an asset, for example, a personal computer, for a sum of Rs. 50,000 what we are buying really is the services of the computer that we shall be getting over its estimated life span say 5 years not be fair to charge the whole amount Rs. 50,000, from the revenue of the year in which the asset is purchased.
(iii) Revenue Recognition (Realization) Concept
The concept of revenue recognition requires that the revenue for a business transaction should be included in the accounting records only when it is realized. Here two questions arise in mind. First. is termed as revenue and the other, when the revenue is realized.
Let us take the first one first. Revenue is the gross inflow of cash arising from (i) the sale of goods and services by an enterprise; and (ii) use by others of the enterprise’s resources yielding interest, royalties and dividends.
Secondly, revenue is assumed to be realized when a legal right to receive it arises. i.e. the point of time when goods have been sold or service has been rendered. Thus, credit sales are treated as revenue on the day sales are made and not when money is received from the buyer.
(iv) Accrual Accounting
Under the accrual basis, however, revenues and costs are recognised in the period in which they occur rather when they are paid. A distinction is made between the receipt of cash and the right to receive cash and payment of cash and legal obligation to pay cash. Thus, under this system, the monitory effect of a transaction is taken into account in the period in which they are earned rather than in the period in which cash is actually received or paid by the enterprise. This is a more appropriate basis for the calculation of profits as expenses are matched against revenue earned in relation thereto. (NCERT Book for Accountancy, Para 2.4 of Chapter Theory Base of Accounting)
(v) Book Keeping
The process of complete and systematic record keeping of the monetary transactions of an organization by the bookkeeper is known as bookkeeping. It is the activity of keeping full documentation of every single financial transaction of the entity to form a base for the accounting process. The purpose of bookkeeping is to disclose the correct picture of income and expenditure at the end of the accounting period.
The task of bookkeeping is performed by the bookkeeper who is responsible for recording the day-to-day business transactions like incoming and outgoing of cash, goods sold or purchased on credit, expenses incurred, etc. in an orderly manner. The bookkeeper captures the transactions in the day books like purchase, sales, purchase return, sales return, cash book, journal, etc. and posts them in the concerned ledger, after that trial balance is prepared. There are two methods of Bookkeeping:
(i)Single Entry system of Bookkeeping and,
(ii)Double Entry system of Bookkeeping
Assistant Accounts Officer (AAO) Exam 2021 Notification – Indiapost