OPERATING RATIO SOLVED QUESTIONS

Glossary Of Terms Operating Ratio

Source-Finance Code Chapter-III

Earning Side				Expenditure Side
Sr. No.	Particulars	Formula	Amount	Sr. No.	Particulars	Formula	Amount
1	Coaching Revenue  (Less Refund)			10	Ordinary Working Expenses= Expenses booked under final heads, excluding appropriation to Depreciation Reserve Fund, and Pension Fund. (Payments on account of accident compensation and Pensionary Payments should also be excluded)
2	Goods Revenue  (Less Refund)			11	Appropriation to DRF
3	Traffic Revenue (Less Refund)	01+02	0	12	Appropriation to Pension
4	Sundry Revenue  (Less Refund) =Other than Traffic Revenue			13	Gross Working Exp= True expenses in an accounting period whether or not actually disbursed.	10+11+12 Operating Ratio=13/5 *100
5	Gross Revenue= true or accrued Revenue in an accounting period whether actually realized.	03+04
6	Traffic Suspense			14	Suspense
7	Gross Receipt- Revenue actually realized during an accounting period.	05+06		15	Gross Expenditure= Working Expenses actually disbursed during an accounting period.	13+14
8	Misc. Receipt= Guarantee recoverable from State Governments + Other Miscellaneous Receipts, such as Government share of surplus profits, sale of land of subsidized companies, receipts from surcharge on Passenger fares, etc.			16	Misc. Exp.= Surveys + Land for subsidized companies; subsidy + other Miscellaneous Railway expenditure, Appropriations to Pension Fund relating to Railway Board and Miscellaneous establishments booked under Major Hear 3001 and payments to worked lines.
9	Total Revenue Receipt	07+08		17	Total Revenue Exp.	15+16 Net Revenue Receipt=9- 17

*	Actual Expenditure	OWE+SUSPENCE
	So OWE=Actual Exp.-Suspense

*Operating Ratio=GWE/GE*100

*Net Revenue=Gross Revenue-Gross Working Exp.

*Net Receipts=Total Revenue Receipt-Total Revenue Exp.

 OPERATING RATIO SOLVED QUESTIONS

		OPRATING RATIO
2017-18 Question Paper
1. Operating Ratio		10
2.Net Earnings		5
3.Surplus/Shortfall		5
		20
Sr.No.	Particulars	Amount (Rs in cr.)
1	Gross receipts	2000
2	Suspense Earnings	180
3	Miscellaneous Receipts	80
*4	Actual Expenditure	1595
5	Suspense Expenses	30
6	Appropriation to DRF	60
7	Appropriation to Pension Fund	80
8	Miscellaneous Expenditure	20
9	Dividends Payable	60
10	Appropriation to Development fund	144
11	Appropriation to R.S.F	98
12	Appropriation to Capital Fund	144

 

Answer
Earning Side				Expenditure Side
Sr. No.	Particulars	Formula	Amount	Sr. No.	Particulars	Formula	Amount
1	Coaching Earning  (Less Refund)			10	Ordinary Working Expenses		1565
2	Goods Earning  (Less Refund)			11	Appropriation to DRF		60
3	Traffic Earning (Less Refund)	01+02	0	12	Appropriation to Pension		80
4	Sundry Earning  (Less Refund)			13	Gross Working Exp.	10+11+12 Operating Ratio=13/5 *100	1705
5	Gross Earning	03+04	1820
6	Suspense		180	14	Suspense		30
7	Gross Receipt	05+06	2000	15	Gross Expenditure	13+14	1735
8	Misc. Receipt		80	16	Misc. Exp.		20
9	Total Revenue Receipt	07+08	2080	17	Total Revenue Exp.	15+16 Net Revenue Receipt=9- 17	1755

 

 

*	Actual Expenditure	OWE+SUSPENCE
	So OWE=Actual Exp.-Suspense	1595-30	1565
Ans.1	Operating Ratio			93.681319
		Gross Working
		Exp./Gross	1705/18
		Earning*100	20*100
Ans.2	Net Earning	Gross Earning-Gross Working Exp.
		1820-1705	115
Ans.3	Surplus/Shortfall	Net Revenue-Dividend
		325-60	265
*	Net Revenue	Total Revenue Receipt-Total Revenue Exp.
		2080-1755	325

 

2016 Question Paper

 

			OPRATING RATIO
2016 Question Paper
1.Total Working Expenses
2. Operating Ratio
3.Net Revenue
4.Surplus/Shortfall
Sr. No.	Particulars	Amount (Rs in crore)
1	Gross Receipts	12005
2	Suspense earning	3
3	Misc. receipts	101
4	Ordinary Working Expenses	8812
5	Suspense expenses	19
6	Appropriation to DRF	473
7	Appropriation to Pension Fund	1948
8	Misc. Expenditure	7
9	Dividends payable	228

 

	ANSWER
Earning Side				Expenditure Side
Sr. No.	Particulars	Formula	Amount	Sr.No.	Particulars	Formula	Amount
1	Coaching Earning (Less Refund)			10	Ordinary Working  Expenses		8812
2	Goods Earning (Less Refund)			11	Appropriation to DRF		473
3	Traffic Earning (Less Refund)	01+02	0	12	Appropriation to Pension		1948
4	Sundry Earning (Less Refund)			13	Gross Working Exp.	10+11+12 Operating Ratio=13/ 5*100	11233
5	Gross Earning	03+04	12002
6	Suspense		3	14	Suspense		19
7	Gross Receipt	05+06	12005	15	Gross Expenditure	13+14	11252
8	Misc. Receipt		101	16	Misc. Exp.		7
9	Total Revenue  Receipt	07+08	12106	17	Total Revenue Exp.	15+16 Net Revenue/ Receipt- =9-17	11259

 

 

Ans.1	Operating Ratio	Gross Working Exp./Gross Earning*100	11233/12002*100	93.59
Ans. 2	Net Receipt	Total Revenue Receipts-Net Receipts	12106-11259	847
Ans.3	Surplus/Shortfall	Net Revenue-Dividend
		847-228	619
Ans.4	Total Working Expenses	OWE+App. To DRF+App. To Pension
		8812+473+1948		11233