villager 868 days ago

This is worthy to mention here that India Railway maintains, at present, two sets of A/cs i.e Finance A/c (cash basis) & Capital & Revenue A/cs (accrual basis),from same sets of accounts records with the help of some linking heads, to satisfy principle of Govt. Accounting & Commercial Accounting respectively. The lacuna of this system is that the present system of accounting does not show the true state of affair of two important areas i.e Pension including retirement benefits and Depreciation on assets. Actuarial calculation on pension has been discontinued since long and Depreciation fund is credited as recommended by Railway Convention Committee(Parliamentary Committee).So ''Accural Accounting is welcomed in Railway A/cs. But, at the same time we should keep in mind that IR bears huge social burden, like transportation of PDS items, providing subsidy in fares to weaker section, loss on remunerative branch line, strategic line etc.etc which should have been borne by G.O.I. IR, also, incurs loss resulting from Purchases from PSU due to ''price preference'' policy and certainly, corruption in awarding works and stores purchase contracts( by a section of officers). Hence, Accrual Accounting is the only solution to place IR on right ''track'' and to make it effective these areas require equal attention.