Railway Accounts Department Examinations
Sunday, June 20, 2021
Saturday, June 19, 2021
26th Zoom Meeting - Topic : Sources of Finance (Budgetary) - 20th June 2021 (Sunday) 6 PM
Topic: Sources of Finance (Budgetary) i.e., Capital, DRF, DF, RSF, RRSK, Debt Service Fund
Date & Time: 20th June, 2021 Sunday 6 PM
Meeting ID: 846 2196 1459
Passcode: appendix3
Zoom Meetings - Topics covered so far
Wednesday, June 16, 2021
Journey of Rupee from Booking Office to RBI
Journey of Rupee from
Booking office to RBI
By Nageswara Rao M, 9492432160
Total Stages - Three
1. From
Booking Office to Cash Office
2. Cash
Office to PSBs ( Public Sector Banks)
3. PSBs
to RBI
Financial Transactions
- 3 Stages
1. Accountal
of Earnings (through CRN -Cash
Remittance Notes / TRN -Treasury Remittance Notes)
|
Date |
Particulars |
Debit |
Credit |
|
|
Remittance Into Bank (RIB) A/c
Dr |
Re 1 |
|
|
To Coaching
Earnings (Abstract X) |
Re 1 |
||
|
|
(Being accountal of
Coaching Earnings & Kept at
Suspense Head to watch the Accountal at RBI) |
|
|
2. Accountal of Cash at PSB – Public Sector
Bank
|
Date |
Particulars |
Debit |
Credit |
|
PSB Suspense A/c Dr |
Re 1 |
|
|
|
To Remittance Into Bank (RIB) A/c |
Re 1 |
||
|
|
(Being accountal of
Coaching Earnings & Kept at
Suspense Head to watch the Accountal at RBI) |
|
|
3. On Receipt of Clearance Memo from RBI
|
Date |
Particulars |
Debit |
Credit |
|
Deposit with RBI A/c Dr |
Re 1 |
||
|
To PSB
Suspense A/c |
Re 1 |
||
|
|
(Being accountal of
Coaching Earnings & Kept at
Suspense Head to watch the Accountal at RBI) |
|
|
Left over Entries after clearance of RIB
A/c & PSB Suspense A/c i.e., Net of
above 3 Transactions:
|
Date |
Particulars |
Debit |
Credit |
|
Deposit with RBI Dr |
Re 1 |
||
|
To Coaching
Eanings (Abstract X) |
Re 1 |
||
|
|
(Being accountal of
Coaching Earnings & accounted at
RBI) |
|
|
Commercial Accounts – In Business
|
Date |
Particulars |
Debit |
Credit |
|
Cash A/c Dr |
Re 1 |
||
|
To Sales (Goods) |
Re 1 |
||
|
|
(Being Sales of
Goods) |
|
|
·
Cash is Real Account. Real Account Rule is “Debit what Comes in and
Credit What Goes out” . Cash is coming
into Business. Hence Cash Account is Debited.
·
Goods are Real Account. Real Account Rule is “Debit what comes in and
Credit what Goes out” - Goods going out from business, Hence Goods Account is credited.
Closing Entries (Chapter Two of Accounts Code):
·
At the end of Financial Year, the following
transactions in the Indian Railways have been closed to the respective heads.
|
SN |
Transaction |
Closed to |
|
1 |
Revenue transactions (except suspense heads i.e., MAR &
DP) |
Net Revenue |
|
2 |
Capital
transactions (except suspense heads i.e., WMS & Stores Suspense) |
Capital
outlay |
|
3 |
Debt (Example: Provident Fund) |
Balance |
|
4 |
Remittances (Examples: Remittances into Bank and Cheques&
Bills) |
|
|
5 |
Balance in Transfer Railways (if any) in the Books
of Railway Board |
|
|
6 |
Revenue suspense head MAR, Capital suspense heads
WMS, Stores & MAC and Link Heads a) Demands Payable b) Traffic c) Demands
Recoverable d) Labour |
|
|
7 |
Balance
in Transfer Railways in the books of Zonal Railways |
Miscellaneous Government Account |
|
8 |
All heads (other than Debt & Remittances) Example: Deposit with Reserve Bank of India |
Remittance Into Bank – RIB
·
It is a Suspense Head
·
Major Head - 8677
·
Operated to watch on the accountal of
Treasury Remittance Notes.
·
It is operated for Cash Received into the
Railways (Like Cheques & Bills operated for Cash outgoing from the
Railways)
·
PSB branches forward (through their FPB - Focal
Point branch) DMS – Date-wise Monthly Scrolls to PFA office. On verification of the same, RIB Account is
cleared by Debited to PSB Suspense Head.
·
In first stage, this Account is Debited and
in Second stage, the same is cleared by Credited. In practical, instead of Credit the Head,
Minus Debit to this Head.
·
That is First Debited and then Minus
Debited. Hence the RIB is closed for
that particular transaction.
·
It is always showing Debit Balance.
Public Sector Bank Suspense
·
Introduced
- 1993 October
·
It is a Sub Head under Major Head 8658 –
Suspense Accounts
·
Object:
To watch the adjustments of Railway Transactions in the Public Sector
Banks (Both Debit and Credit)
·
Operated for clearance of Remittance Into
Bank and Cheques & Bills
·
Not operated for Pension Payments.
Deposit with Reserve Bank:
·
Major Head 8675
·
It is Final Head (not suspense Head) for
accountal of Cash Receipts & Cash payments and Adjustments on Behalf of
Government of India.
·
It is maintained at CAS – Central Accounts
Section, RBI, Nagpur.
·
It is operated for all types of Cash
payments, Cash Receipts, Adjustments.
Railway Fund
·
Maintained in the books of CAS – Central
Accounts Section, RBI/Nagpur
·
Though the Railway transactions form the part
of Consolidated Fund, Contingency Fund & Public Account, they are accounted
in the prof
forma Railway Fund.
Door Step Banking
·
First Zonal Railway – introducing the Door
Step Banking – SWR in 2016
·
So far 7 Zonal Railways have initiated Door
Step Banking.
·
SCR has entered MOU (Memorandum Of
Understanding) with SBI in 2020 January
·
Direct pickup of Earnings/Revenue from 585
Railway Stations over SCR by SBI.
·
Approximate Railway Stations in IR - 8000
·
Saves the tedious and complex activity of
Cash Movement through Cash safes in Trains.
·
Avoids delay in accountal of Earnings into
Bank.
·
All Railway Stations will have uniform Cash
Remittance Mechanism.
·
Real time information about cash being
deposited by different stations.
·
Avoidance of unwanted accumulation of Cash at
Railway Stations.
·
Elimination of Cash In Transit
·
Detailed MIS Reports – Date wise transactions
furnished by Bank to Railways on day to day basis under focal point concept
scheme
·
So that, monitoring of timely deposit of
Earnings / revenue by the Bank into Railways Account,
Rail Shakti Account – SBI
·
Railway Board circular No.RBA 24/2012 dated
11.07.2012
·
Single Deposit Pooling Account - Operated by SBI at Focal Point Branch (FPB)
·
To facilitate remittance of Railway Earnings
by Stations to nearby SBI branches without opening a Railway Deposit
Account.
·
The said SBI branches will credit the amount
instantly to FPB on a daily basis.
·
FPB will provide a Daily scroll incorporating
all such details to PFA Office.
Key Takeaways
1. Accounts
operated in this Journey are:
a) Earnings
b) RIB
c) PSB
Suspense
d) Deposit
with RBI
2. CRN
– Cash Remittance Note
3. TRN
– Treasury Remittance Note
4. SBI
Pooling Account – DSB – Rail Shakti Account
5. DSB
– Door Step Banking
6. DMS
– Date-wise Monthly Scroll
7. FPB
– Focal Point Bank
8. RIB
Head always shows Debit Balance
9. Clearance
Memo issued by RBI – Authority for operating Deposit with RBI Account in PFA
Office.
10. PSB
Suspense introduced – 1993 October
11. Revenue
transactions (Earnings / Expenses) - closed to Revenue outlay - at the end of
Financial Year.
12. Deposit
with RBI – closed to Miscellaneous Government Account – at the end of Financial
Year.
13. RIB
Major Head – 8677
14. PSB
Suspense – Sub Head under Major Head 8658- Suspense Accounts
15. Railway
Fund – operated in CAS – Central Accounts Section, RBI, Nagpur
16. First
Zonal Railway – Implementing DSB – SWR
******
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