Attempt All Questions From PART-I and Any Two From Part-Ii
Attempt All Questions From PART-I and Any Two From Part-Ii
Attempt All Questions From PART-I and Any Two From Part-Ii
Winter Exam-2015
AGP/PG/PMAD/PUBLIC Sectors
Financial Audit Manual (FAM) [05.11.2015]
Marks-75 D u r a t i o n : 2 hrs. 15 min
Subjective Additional time – 15 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Books are not allowed.
• Start each question from fresh page.
Part-I
Q.1. (a) Define Financial Audit. 05
(b) You are assigned Financial Audit of a component in the Financial Statement. 10
State when a component would be considered to be in error.
Q.2. (a) In what ways an auditor can obtain the desired level of assurance that payroll 08
expenditure are not materially misstated in Financial Statement.
(b) List the steps that an auditor usually perform to determine materiality. 07
(b) Describe the factors that should be considered when setting the audit budgets. 07
Part-II
Q.4. (a) You are supposed to select items for tests of details to conclude about the account 08
as a whole. How you will do it?
(b) Define further Possible Error and its components. 07
Q.5. (a) List in what ways proper supervision is done to ensure the quality of audit work. 08
(b) Based on your audit experiences. List the important underlying causes for the 07
observed weaknesses or errors in Financial Statement.
(b) State the matters on which the entity feedback is obtained to assess and improve 07
the quality of audit.
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP SECTOR
Financial & Management Accounting [04.11.2015]
(Commercial Audit)
Marks-75 Duration:2 hrs.15 Mins.
Subjective Additional time – 15 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Balance Sheet
Dec. 31 Dec. 31
2014 2013
Rs. Rs.
Bank (6,000) 7,000
Trade receivable 35,920 30,000
Less allowance for doubtful accounts (3,400) (2,000)
Inventories 63,900 20,000
Equipment 69,000 45,000
Less accumulated depreciation (15,000) (9,000)
Investments 3,000 8,000
Goodwill 0 7,400
147,420 106,400
2014 2013
Trade payable 41,500 25,400
Debentures 0 15,000
Preference shares 0 6,000
Ordinary shares 76,000 40,000
Premium on ordinary shares 8,000 ---
Un-appropriated profits 21,920 20,000
147,420 106,400
Income Statement:
Year Ended December 31, 2014 Rs.
Sales 130,000
Cost of goods sold (including depreciation Rs.9,000) 76,400
Gross profit 53,600
General expenses 32,000
Premium on redemption of debentures 1,200
Premium on redemption of preference shares 480
33,680
Net profit 19,920
Contd. on back
Statement of un-appropriated profits
Balance, beginning of year 20,000
Net profit 19,920
39,920
Cash dividends 18,000
Balance, end of year 21,920
Additional information
1. Sale of equipment
Cost 8,000
Book value 5,000
Sale proceeds 1,000
The loss is included in general expenses
2. Purchase of equipment 32,000
3. Sale of investments:
Cost 5,000
Sale proceeds 6,000
The gain is included in general expenses
Debentures redemption
12% debentures redeemed, face value 15,000
Premium 8%
Preference shares redemption
Face value 6,000
Premium on redemption 8%
Goodwill written off 7,400
The write off is charged to general expenses
Required:
Prepare Cash Flow Statement for 2014. 10
Q.2. Following information of a Company is available for the year ended 31 March 2013.
Rs.
Share Capital (200,000 shares of Rs. 10 each) 2,000,000
Interest Expense 400,000
Profit for the year after interest and tax 1,600,000
Long Term Loan 10% 4,000,000
Interest cost relating to capital work in progress (need to capitalize) 60%
Tax Rate 30%
Market Price Rs. 25 per share
Dividend per share Rs. 3 per share
Required:
a) Earnings per Share 02
b) Price Earnings Ratio 02
c) Dividend Yield 02
d) Return on Capital Employed 02
Contd….
Q.3. Explain the following terms to make the financial information useful for its users:
(a) Relevance 02
(b) Materiality 02
(c) Comparability 02
(d) Verifiability 02
(e) Timeliness 02
Q.4. A & A incurred following expense on a machine during the year. Machine book value at
the start of the year was Rs. 8 million.
Rs.
Insurance cost 250,000
Machine operator Salary 120,000
New Parts
1,200,000
(which will improve the efficiency of the machine in terms of output)
Cleaning cost 200,000
Required:
What total amount will be treated as Capital Expenditure for the respective year? 07
Q.6. Following information of AS (Pvt.) limited is available for the year ended 30th June 2014:
Rs.
st
Share capital as at 1 July 2013 200,000
50% Right shares issued during the year 100,000
Premium on right shares (issued during the year) 50,000
General reserve as at 1st July 2013 500,000
Accumulated loss as at 1st July 2013 100,000
Profit for the year ended on 30 June 2014 350,000
Interim dividend declared and paid for the year ended 30 June 2014 150,000
Contd. on back
Required:
Prepare Statement of Changes in Equity of AS (Pvt.) Limited for the year ended 30 June 10
2014.
Q.7. Following is a Trial Balance of CFS Limited for the year ended 31st December 2012:
Debit Credit
Rs. Rs.
Plant and machinery – cost 6,000,000
Vehicles – cost 300,000
Plant and machinery – accumulated depreciation 1,200,000
Vehicles – accumulated depreciation 180,000
Stock in trade 7,000,000
Trade debtors 6,000,000
Other receivables 60,000
Trade creditors 1,200,000
Accrued expenses 120,000
Cash in hand 60,000
Cash at bank 180,000
Advances to staff 500,000
Paid-up share capital
3,000,000
(300,000 ordinary shares of Rs. 10/- each fully paid in cash
Capital reserve 200,000
Accumulated profit 6,400,000
Long term loan 4,000,000
Sales 48,000,000
Purchases 30,000,000
Labor and wages – direct cost 7,000,000
Other direct cost 3,000,000
Administrative and general expenses 4,000,000
Interest on long term loan 200,000
64,300,000 64,300,000
Other information:
• Closing stock value as on 31 December 2012 is Rs. 8,000,000.
• Administrative and general expenses include office rent from January 2013 to June 2013
amounting Rs. 120,000.
• Depreciation adjustment is required on straight line basis by using 20 % on vehicles and 10%
on plant and machinery.
• Rate of long term loan is 10% per annum on outstanding balance. Original amount of loan
was Rs. 8 million and was repayable on biannual basis in equal 16 installments on 1st January
and 1st July of each year.
• Tax for the year is Rs. 1,435,000 after considering all above adjustments.
Required:
Prepare following Financial Statements of CFS Limited for the year ended 31st December
2012:
a) Profit and Loss Account. 10
b) Balance Sheet. 10
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP/PG/PMAD/PUBLIC Sectors
New Accounting Model (NAM) [02.11.2015]
Marks-75 Duration: 2 hrs. 15
Min s. Additional time – 15 min for Paper Reading
Subjective
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Quote reference of relevant para/section with the name of relevant manual.
• Start each question from fresh page.
Books Allowed:
• Accounting Policies and Procedures Manual (APPM)
• Manual of Accounting Principles (MAP)
• Chart of Accounts (CoA)
Part ‘A’
Q.1. Using Chart of Accounts (COA), codify the followings: (only Alpha-Numeric
codes should be given in one line without explanation)
(i) Consolidated Fund Revenue Voted Current Expenditure Prison 04
Administration and Operation (Fund cum Function)
(ii) District Administration Human Resource Management 04
(iii) Defence Affairs Training-Domestic 04
(iv) Director General- Extension Motor Vehicle Registration 04
(v) Azad Jammu & Kashmir Agriculture Research and Extension Services 04
Research and Surveys
(vi) KP Food Department-Directorates of Food, Food Account 04
Q.2. (a) Calculate the total receipts as per DAO’s General Ledger from the following 08
data. Present the reconciliation of receipts on the format prescribed (ignore
expenditure format).
• Additions required to DAO’s General Ledger Rs. 15,000 (item 1, 75%,
item 2, 25%)
• Subtractions required to DAO’s General Ledger Rs. 20,000 (items 1
and 2 have the same percentage as that of normal additions above)
• MMBDS total Rs. 50,000.
(b) An old fixed asset of net worth Rs.100, 000 was traded in with a new Fixed 08
Asset costing Rs.125,000 on 31st of July 20XV.
Give necessary double entries for its accounting.
Contd. on back
Part ‘B’
Q.3. From where the definition of the financial year has been adopted for MAP? 07
OR
What is the policy of Public Account Balances carry forward into the following
financial year?
Q.4. (a) Under what condition the normal deductions from the salary & wages are not 07
required to be made.
(b) How the information of the loans and advances balances is communicated in 07
case of transfer of Government Employee from one province to the other.
OR
In the computerized set up of PIFRA, where SAP/R3 has successfully been
updated in all the Provincial and Federal Servers and all the sites are connected
through WAN(Wide Area Net Work) with its respective server, Do you think
that the old practice of the manual LPC should continue.
Q.5. (a) Describe the Procedure of payment of arrears due to the Pensioner in case of 07
Pensioner’s death.
(b) Enlist the classes of Liabilities to be reported in the Annual Accounts as required 07
by FRM.
OR
Who is responsible for preparation of debt report and according to which
format?
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP /PMAD Sector
Pay, Pension & TA Rules (Practical) [02.11.2015]
Defence Audit (AGP Sector)/ PMAD Sector
Marks-38 D u r a t i o n : 1hrs. 1 5 M i n s .
Subjective Additional time – 10 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Books Allowed:
Pay & Allowances Regulations Vol I & II Military Leave Rules Relevant Military Accts. Dept. Manuals & Procedures Code
Pension Regulations Vol I, II & III Passage Regulations CSR (Pay & Pension rules applicable to PMAD)
Supplementary Rules (in FR & SR) Accounts Manual Pay Accounting in Fields Service- general Instructions
Financial Regulations Parts I & II Regulation for PAF, PN, Army in Pakistan (Rules & Instructions)
Q.1. Define the following for admissibility of Pension in the U/M terms. 08
(a) Average emoluments
(b) Military Service
(c) Qualifying Service
(d) Combatant Service
Q.2. Mr. Muhammad Anwar Assistant (B-14) serving in GHQ Rwp. Posted to Karachi. He has one 08
wife and two children (over 12 years). What will be entitlement of TA/DA?
Q.3. Calculate pension and commutation in r/o Major Nadeem Aslam on the basis of following data: 10
(a) Station Headquarters Hyderabad recruited during may-2006 Civilian employees in BPS 3–15
without advertising the post in the newspaper.
Contd. on back
(b) Civilian employees in BPS 1–2 without obtaining NOC from CP Department GHQ.
(c) Civilian employees in BPS 1–2 without obtaining clearance certificate from Corps.
Headquarters.
(d) Civilian employees BPS-1 recruited from other cities instead of Local localities. Moreover,
CMA(KC) has also rejected the pay of said personnel.
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP /PMAD Sector
Pay, Pension & TA Rules (Theory) [02.11.2015]
Defence Audit (AGP Sector)/ PMAD Sector
Marks-38 D u r a t i o n : 1hrs. 1 5 M i n s .
Subjective Additional time – 10 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Q.2. Describe the salient feature of revised basic pay scale, allowances and pension of 10
Civil employees of Federal Govt. (2015) introduced on 01-07-2015.
Q.3. Explain Emoluments which are admissible to the Commissioned Officers during 10
casual, privilege, furlough leave and leave on medical certificate also.
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP/PUBLIC SECTOR
Postal Accounts Technical (SB, MO, CC) (Practical) [04.11.2015]
Postal Accounts Branch
Marks-80 Duration: 2 hrs.30 Mins.
Subjective Additional time – 15 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Books Allowed:
Q.2. Mention briefly the duties of Audit Officer in regard to Audit on the following:
Contd. on back
Q.5. From the following, calculate the balance at the credit of a Saving Bank 16
Account in Post Office closed on 31.12.2014 and also interest due for the
year 1-1-2014 to 31-12-2014 at the rate of 7% on closing balance:
(Rs.)
(i) Opening Balance 460,000
(ii) Deposited in Feb. 2014 50,990
(iii) Interest for the last year (1-1-2014 to 31-12-2014) 15,550
(iv) Withdrawal on 01-06-2014 50,000
(v) Tax on interest charged in August 2014 1,000
(vi) Deposited in Oct. 2014 60,550
(vii) Withdrawal in Dec. 2014 25,000
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP/PG/PUBLIC SECTORS
Public Works Accounts Rules & Procedures (Practical) [04.11.2015]
(GAA, CGA, CDA, LFA TRY)
Marks-38 Duration:1 hr.15 Mins.
Subjective Additional time – 10 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Books Allowed:
1. CPWA Code 4. Books of Forms referred in CPWA code 7. Audit Manual
2. CPWD Code 5. Accounts Code Vol - III
3. Audit Code 6. Chart of Accounts
Attempt all Questions
Q.1. What do you know about the difference between Administrative Approval and 09
Technical Sanction?
Q.2. Why the settlement with treasuries is an important function in the Public 09
Works Division? Discuss in detail.
Q.3. Prepare 2nd Running Bill paid vide Vr. No. 26 dated 20-8-15 to M/s. Farhan 20
Construction for the Work “Construction of Road” from the data given
below:-
Quantities
Rate Upto date
Sr. No. Item of Work Unit Paid
Rs. Quantity
in last Bill
1. Making Earth embankment o/oo Cft. 4,000 35,000 Cft. 25,000 Cft.
2. P/L Sub Base % Cft. 5,500 30,000 Cft. 15,000 Cft.
3. P/L Base Course % Cft. 6,500 30,000 Cft. 15,000 Cft.
4. 3” thick Carpeting % Sft. 8,000 10,000 Sft. 5,000 Sft.
5. P/F Steel Railing on Road Per Rft. 200 2,000 Rft. 500 Rft.
6. Road marking with Paint Per Rft. 50 2,000 Rft. -
(i) 59.5 % Premium on Item No. 1 to 4 and 10% Rebate on item No. 5 & 6.
(ii) Mobilization Advance of Rs. 500,000 already given out of which 1st installment
@ 20% of total amount of mobilization advance will be recovered in this bill.
(iii) Advance Payment of Rs. 250,000 is to be given in this bill against item No. 3.
(iv) Secured Advance against 50,000 Cft. Stone Crush was given in 1st Running Bill
against item No. 3 at Market Rate of Rs. 5,000 per % Cft. which is to be
recovered in this bill.
(v) Secured Advance against 1,000 Rft Steel Railing is to be given in this bill on
market rates of Rs. 100 per Rft.
(vi) Deduct Security Deposit @ 10 % and Income Tax as per Rules.
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP/PG/PUBLIC SECTORS
Public Works Accounts Rules & Procedures (Theory) [04.11.2015]
(GAA, CGA, CDA, LFA, TRY)
Marks-38 Duration:1 hr.15 Mins.
Subjective Additional time – 10 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Q.5. A Personal account is opened in the Ledger for every contractor by each 10
Public Works Division. What do you know about it? Describe briefly
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Pakistan Institute of Public Finance Accountants
Winter Exam 2015
AGP/Public Sector
Service & Financial Rules [02.11.2015]
(GAA, PT&T, Postal Accts, Customs, Coml. Audit, Railway Audit, Inland Revenue, PRAD)
Marks-75 D u r a t i o n : 2 hrs. 15 min
Subjective Additional time – 15 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Commutation Table is printed on the back of this Question Paper.
• Start each question from fresh page.
Q.2. What are the conditions for grant of Permanent Advances to Govt. Employees? 10
Q.5. Comment:
(a) A Govt. Servant applied for encashment in lieu of LPR for 365 days. During this 05
period, he had to avail 60 days leave for Hajj.
(b) A Govt. Servant was compulsory retired from service as a major penalty under 05
E&D Rules 1973. His pension case was pended for want of “thoroughly
satisfactory service certificate”.
(c) The borrowing department of Provincial Govt. after due process under E&D 05
Rules imposed a minor penalty of withholding of one increment on a Federal
Govt. Servant serving on deputation.
(d) A Govt. Servant in B-16 was drawing monthly salary of Rs.28,645/- which 05
includes basic pay of Rs.13,945/- and allowances Rs. 14,700/-. The disbursing
officer deducted an amount of Rs.23,500/- from his pay for the month of July
2015 on account of overpayment previously made.
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COMMUTATION TABLE
Books Allowed:
• MES Regulation • Current Orders in A.Is (P) PAOs
• MES Local Audit Manual • Manual and Procedure Codes
Add
• Army Regulations Quarters and Rents • RAP Rules
• Financial Regulations Part – I & II • Factory Accounting Rules
• MES Unit Accountant’s Manual • Classification Code List (Defence Services) & Pamphlet
• Store Accounting Instructions • Debt and Remittance Heads with Code Numbers “Revised Edition” 2008 by MAG
• LAOs Handbook Part – I & II • Financial Regulations (Army & Air Force) Vol I
• Military Audit Code • Financial Regulations (Navy)
• Military Accounts Codes • System of Financial Control and Budgeting
Part - I (MES)
Q.1. A private house has been hired by Corp. HQ. How expenditure will be met for 06
maintenance of compound/garden and any receipt adjusted; where:
Q.2. Against Admn. approval for construction of a unit mess, issued on 10.01.2014, 04
by Corps Commander for Rs. 7,000,000/- and ordered later on to commence
the work from 18.05.2015 and asked the concerned Authorities for allotment of
funds. What are your audit comments on this issue?
Q.3. Anticipated savings of a work was earmarked, to carry out additional work not 03
contemplated in the approved project, which was not fairly contingent upon its
actual execution. Is it acceptable in audit?
Q.4. A security deposit was made by Habib Bank Ltd on behalf of contractor. After 03
fulfillment of the contract, the claim for refund to the Bank was not accepted
by the audit authorities, insisting that claim should be preferred by the
contractor himself. Comment with rules in support.
Q.5. Under what circumstances the execution of Standing Security Bond will not be 04
a condition of contract? How you will differentiate the term Security Deposit
and Standing Security Bond and the rates prescribed between them?
Contd. on back
Part - II (STORES)
Q.6. Under what circumstances Directors of Procurement are authorized to issue 04
amendments to contract approved by Secretary / D.G.D.P?
Whether Secretary (D.P.) Division can delegate powers to Directors
Procurement to sign contracts approved by him?
Q.9. What are Budget Heads and Code Heads residential expenditure work in 05
progress of Army, Air Force, Navy Works and the Deduct for transferring
expenditure to AGPR?
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
AGP SECTOR
Works (MES) Stores (Theory) [04.11.2015]
(Defence Audit Branch)
Marks-38 Duration:1 hr.15 Mins.
Subjective Additional time – 10 min for Paper Reading
[Instructions]
• Ensure that the question paper delivered to you is the same, in which you intend to appear.
• Read the instructions given on the title page of Answer Script.
• Start each question from fresh page.
Part - I (MES)
Q.1. What Registers & Books are directly related to POL Accounts and what are 04
important points to be checked during audit?
Q.2. Write a short note on Stock Book Rates and the compilation of rates/price in 03
the Stock Purchase Register (PAFW-2316).
Q.3. What do you know about Classification Code List (Defence Service) and 02
pamphlet of R.D.R Head?
Q.4. What are details of documents submitted to CMA alongwith contract and 04
which one is specific document not submitted to CMA or U.A. treated as
secret but made available to test audit when demanded?
Q.5. What are conditions to dispense with calling for tenders by CMES within his 04
own powers and in the case of exercise of powers in consultation with
Controller of Accounts?
Q.6. What are conditions for issue of formal order accepting necessity by CFA? 03
What step is taken when the amount of project estimate prepared to accord
Admn. approval exceed the amount at which acceptance of necessity was
accorded?
Part - II (STORES)
Q.7. What is the procedure for submission of Bills of DGDP contracts for payment 05
and the main points for audit?
Q.8. How transactions of losses in the case of consuming units where periodical 04
stock taking is in force, are dealt with?
Q.9. What points are seen in audit for Board of Survey hold on all unserviceable 05
items of Medical Stores Depot and the Stores to be disposed off?
Q.10. Under what circumstances mature Live Stock and the Dead Stock in Military 04
Farm is appreciated?
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
PUBLIC SECTOR
Construction, Stores & Works Accounts (Practical) [04.11.2015]
(Pakistan Railway Accounts Department)
Marks-75 Duration:2 hrs.30 Mins.
Subjective Additional time – 15 min for Paper Reading
[Instructions]
Ensure that the question paper delivered to you is the same, in which you intend to appear.
Read the instructions given on the title page of Answer Script.
Start each question from fresh page.
Books Allowed:
Engineering Code State Railway Code for Mechanical Dept. Way & Works Manual
Account Code Vol–1 Modernized Accounting Procedure Manual Manual of X / Section
Manual of Stock Verification State Railway Code for Stores Dept. Store Manual
Public Purchase Procurement Rules An Introduction to the Accounts and Audit General Code Vol–1
Q.1. (a) How the expenditure incurred in workshops is classified under “Prime Cost” 10
and “Oncost”. Write in detail and also elaborate your answer with examples.
Q.2. (a) What is the difference between Shop Oncost and General Oncost? 7.5
(b) What is the procedure of repair of non-stock items in Railway Workshops? 7.5
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Pakistan Institute of Public Finance Accountants
Winter Exam-2015
PUBLIC SECTOR
General & Rev. Accts. of Railways (Practical) [05.11.2015]
(Pakistan Railway Accounts Department)
Marks-75 Duration:2 hrs.30 Mins.
Subjective Additional time – 15 min for Paper Reading
[Instructions]
Ensure that the question paper delivered to you is the same, in which you intend to appear.
Read the instructions given on the title page of Answer Script.
Start each question from fresh page.
Books Allowed:
Railway Accounts Code Vol 1 & 2 Coaching & Goods Tariff Code State Railway General Code
Manual of IA ICG Balance Sheet, Coaching Goods and A & AR Sections of TA Branch.
Q.3. Describe in detail the procedure of communicating the compliance report to 12.5
Statutory Audit.
Q.4. Elaborate how losses sustained by Pakistan Railways are accounted for and 12.5
exhibited in the Appropriation Accounts?