Railway Accounts Department Examinations

Showing posts with label Station Balance Sheet. Show all posts
Showing posts with label Station Balance Sheet. Show all posts

Friday, May 8, 2020

Sunday, May 3, 2020

Traffic Book

Traffic Book

§   

§      Source: Chapter 32 of Accounts Code Part II.   Clickhere

§      Scope :The Traffic Book is a compilation which collects and brings to account, under the prescribed heads Coaching, Goods and Sundry Other Earnings, the whole of the traffic earning of a railway, both Local and Through, whether accrued at stations or otherwise.

 

§      Easy to remember:  Key word :CU (W) BA

 

 

Traffic Book is a compilation which

C

Collects & brings to account

U

Under the prescribed heads  Coaching, Goods and Sundry & other earnings

W

Whole of traffic earnings of a Railway (i.e., Zonal Railway)

B

Both Local & through

A

(whether) Accrued at Stations or otherwise (i.e., Accounts Office)

 

§      Traffic  Earnings comprises of

§      Passenger earnings :

 

1.       Issue of Tickets for both PRS and UTS duly collecting   either Cash or Vouchers viz. Military Warrants, Police Warrants, Credit notes etc.

2.       Issue of Passenger tickets in the form of PCT,  BPT and EFT ( In lieu of BPT and PCTwhen not available)

 

§       Goods earnings :

 

1.       Freight collected on movement of Goods.

2.       Amount collected on Wharfage& Demurrage charges.

3.       Amount collected on Punitive charges for   overloading.

4.        WDRF amount forfeited.

5.        Siding, Shunting, Crane and Trip charges, Detention charges, Stabling Charges WB Testing Charges etc.

 

§      Other Coaching Earnings:

 

1.       Parcels (Both L & F)

2.       Luggage (Both L & F)

3.       Penalty by TTE

4.       Penalty by TC/SM

5.       HCD/A&B

6.       Cloak room charges

7.       Demmurage

8.       Wharfage

9.       Special trains - Military & other than military

10.   Platform tickets

11.   Cancellation and clerkage

12.   Storage charges

13.   Postal haulage charges

14.   Miscellaneous

 

§      Sundry Earnings :

 

1.       Rent & tolls incl res buildings, retring rooms.rest houses outsides, quasi rly institutions

2.       Lease of land-bldg,other pupose,dev of rly land, vertical leasing of bldg space, air space, optic fibrre, way leave facility, parking lots, lease/licensing of comercial & engineering plots,interest and maintainance charges for private sidings.

3.       Catering-dining cars,departmental,fines & license fees, irctc haulage of pantry cars

4.       Deposit works-outsiders in workshop

5.       Sales-unclained and damaged goods,grass,jetropa trees,scrap

6.       Advertisements through hoarding and sign display boards painting on coaches

7.       Advertisements through -interet and booking sites-

8.       Miscellaneous-diet,relhs,other sundry, atm booths,book stalls,residual value of laptops & slates,noteboooks, guarantee fee from psu, from recruitment cell

9.       Refunds from rent & tolls, other sundry deposit

 

§      Progress & Apportionment:  Traffic Book records

1.       the progress of realization of these earnings,

2.       the results of apportionment of traffic interchanged with other Railways, Deposit Private Companies (incl: OBA - Out Booking Agency, CBA - City Booking Agency, JTBS- JanSadharan Ticket Booking Sevak, YTSK - Yatri Ticket Sewa Kendra & Private Railways)

3.       Progress in settlement of the balances on these accounts

§       Traffic Book - 4 distinct parts

Key Word: SALA

Part

Description

A

Station Accounts

B

Adjustment / Division Sheet

C

Ledger Account of Home Railway

D

Abstract of Earnings & Statement of Balances

 

 

Traffic Book Part A - Station Accounts:

 

§      Separately for Coaching & Goods

§      Consolidates " Earnings accrued at Stations (not at Hqrs Accounts Office) for the realisation of which Home Railway is responsible.

§      Form No. A 3203

§      Comprises summary of All station Balance sheets.

§      Station Balance sheets prepared - Separately for Coaching & Goods(In major stations, separate balance sheets are prepared for PRS, UTS, Goods, Parcels etc.,)

§      Names of Railway stations - preferably in convenient groups (usually in Geographical position)

§      Station Balance Sheet is Personal Account of Station Master.Hence the golden rule of Personal Account, i.e., Debit the Receiver and Credit the Giver is applied in posting the Station Balance Sheet.

§      Debits  - X, Y & Z Earnings (Because Station Master is the Receiver)

§      Credits: Cash, Vouchers & Transfers (Because Station Master is Giver)

§      Postings - Part A  Source:

1.       From system generated (online) Station Balance Sheets / manual Balance sheets

2.       Changes made by Traffic Accounts office during internal check

3.       Opening Balance - brought forward from previous month Traffic Book Closing Balance

 

OB + Earnings (X,Y,Z)  - Cash, Vouchers, Transfers  = CB

 

Proforma of Station Balance Sheeets - A 3203

 

Station

OB

Debits

Total Debits

Incl: OB

Credits

CB

X & Y

Z

Total Debits

Excl: OB

Cash

Vrs

Tfrs

Total

A

100

40

5

45

145

50

40

20

110

35

B

75

25

10

35

110

55

25

10

90

20

C

25

150

25

175

200

60

35

20

115

85

Total

200

215

40

255

455

165

100

50

315

140

 

Verification of Part A

 

Segment

Checks with

Op Balance

Previous months CB of Part A

Cash

Cash Register / Traffic Cash checksheet

Vouchers

Aggregate of Warrants & Credit notes sent by stations

Transfers

(Balance Sheet)

Station to Accounts Office & Vice versa  -

with Accounts Office Balance Sheet

Transfers (Books)

EMD etc credited to expenditure heads (not part of earnings) and Dept expenditure - debited to expenditure heads (out of station earnings) - verified with summary of JVs (Journal Vouchers)

 

 

Adjustment Balance Sheet / Supplementary Balance Sheet

 

§      Purpose:

1.       to adjust all errors noticed during posting in Part A

2.       to avoid repeated alterations in the figures already posted in Part A

§       All such corrections carried out to Part A through Adjustment Balance Sheet

§      Prepared in the same form as Part A of Traffic Book

In traffic book section of Accounts office,  the coaching part A and goods part A are posted separataely. Coaching part A includes passengers, other coaching and sundries.

 

1.       Separately for Coaching and Goods.

2.       OB to be brought forward from previous month

3.       All Accrued earnings on debit side

4.       Cash Vouchers (Billable and Non Billable),Refunds, Transfers (S/O) on Credit side

5.       Items not passing through Station balance sheet (Carriage Bills, Corrected value) taken as Voucher difference.

6.       CB represents unrealized earnings

§      Grand Totals under each head - transcribed to Part C - Ledger Account of Home Railway

Part B - Adjustment / Division Sheet

§      Object: Apportionment of Coaching & Goods earnings between Home Railways and Other Railways, Deposit Private Companies, OTA, etc.,,

§      Separately for Coaching & Goods

§      Apportionment  - Two methods

 

Adjustments

Division Sheets

By RITES/CRIS

(through CAS -

Centralized Apportionment

System)

By Zonal Rlys

Coaching & Goods

Parcels

 

§      Apportionment in respect of  Other  Coaching  is done only for Parcel Traffic .

§      No apportionment of the following items (i.e., retained wholly at Collecting Zonal Railways only)  A. Excess Fare  B. Luggage  C. Animals & Birds etc.

 

SN

Adjustment of

Responsibility lies with

1

Coaching

Forwarding Railway

2

Goods

Forwarding Railway

3

Parcels - Paid

Forwarding Railway

 

 

 

§      Separately for Coaching & Goods

 

Principle of posting in Part B

 

 

§      Out of earnings from through traffic - Realisation of which, Home Railway is responsible   - To surrender the portion which is not its own.

 

Debit to Home Railway

Credit to Other Railways 

 

§      Similarly, it has to bring into account, its own share of earnings for which other Railways are responsible.

 

Debit to Other Railways

Credit to Home Railway

 

Procedure  Then:

Interchange between Railways

Segment

Outward

Inward

Passsengers

Printed tickets &

BPT- Blank Paper Ticket

Telegraphic advice  - Results

Of apportionment from other Rlys

Goods - Paid & To Pay

Machine statement of Apportionment (MPA)

- Do -

Parcels - Paid

Prescribed percentage

- Do -

 

Interchange with Deposit Private Cos, OTA/CTA etc

Segment

Outward

Inward

Passsengers

Home Rly Division Sheet

Inward  Division Sheet

Goods

- Do -

- Do -

Parcels

- Do -

- Do -

Luggage, Animals, Birds etc

- Do -

- Do -

 

Procedure  Now: In order to have transparency and to avoid discrepancy the CAS was adopted:

Source: - Net Results

Net Results: These are prepared from the Matrix sent through  CAS ( Centralised Apportionment System) . The Nodal Agency is CRIS. CAS is received for PRS, UTS and GOODS to the respective Railways.

The exchange of outward shares/Inwards Shared are communicated/ received to/from other Railways/ Home Railways through E-Recon. The CAS in respect of BPT and PCT do not happen on regular basis as they are less significant in respect of Passenger earnings as PRS and UTS comprises of 99% of the Passenger Earnings.

 

§      Part B totals of the figures - against Home Railway, Each other Railway, Deposit Private Co. etc.,  - cast and transcribed to Part C


Points to remember for Part B

1.       Results of Apportionment of Through traffic interchanged between Home Railways and Foreign Railways.

2.       Separately for Coaching and Goods.

3.       Local Traffic is retained by Home Railways.

4.       Foreign Traffic is Apportioned with Other Railways following rules of Apportionment.

5.       Excess fare, Luggage and Other Traffic is retained by Home railways.

6.       Posting of Part B is done from NET RESULTS.

7.       The Total is transcribed to Part C.

Part C - Ledger Account of Home Railway:

Form No. A 3225

§      Separately for Coaching & Goods

Part - C - 3 segments

 

Traffic A/c

 

Other Railways A/c

 

Deposit Private Company A/c

 

Traffic A/c:Link Head connecting Govt Accounts and Commercial Accounts.  It is in nature of "Sundry Debtors A/c" in commercial accounts

 

§      Debtor - All earnings (Local & Through)

§      Creditor - All Recoveries for such earnings

§      Balance: Unrealisedearnings  - Always Debit balance

§      OB - Previous Month's CB

 

Specimen journal entries

 

Date

Transaction

Debit

Credit

01.01.2020

Traffic A/c Dr

Rs.200

 

 

     To Coaching Earnings A/c      Cr

 

Rs. 200

 

(Being accounted the earnings for which realisation is due)

 

 

 

Date

Transaction

Debit

Credit

25.01.2020

Remittance Into Bank (RIB) A/c Dr

Rs.150

 

 

         To Traffic A/c                                 Cr

 

Rs. 150

 

(Realisation of earnings due)

 

 

 

Ledger Account of Traffic A/c for the month of January, 2020

Date

Debit

Amount

Date

Credit

Amount

01.01.2020

To Coaching Earnings A/c

Rs. 200

25.01.2020

By RIB A/c

Rs. 150

 

 

 

31.01.2020

By Balance b/d

Rs.50

 

Total

Rs. 200

 

Total

Rs. 200

 

Ledger Account of Traffic A/c for the month of January, 2020

Date

Debit

Amount

Date

Credit

Amount

01.02.2020

To Balance c/d -------------   

Rs. 50

---------------

--------------------

-

 

 

 

 

 

 

 

 

 

 

 

 

 

§      So, Traffic Account is always showing Debit Balance (as in Sundry Debtors A/c in commercial accounts)

 

§      In regard to earnings from Through traffic, the division thereof between Home Railway, other Railways and Deposit Private Companies having already been made in Traffic Book, Part B, the figures should be transcribed from that Part to Part C.

 

§      The Home Railway's earnings in which these were merged in Traffic Book Part A, should be minus credited by credit to other Railways and Deposit Private Companies or vice versa.

 

§      Accounts Office Balance Sheet  - Debits and Credits to Traffic Accounts - should be added to these transcribed from Part A.

§       In the case of these figures, the credit to earnings arises only in respect of such items as have not already passed through the Station Balance Sheets and Traffic Book, Part A.

Other Railways Account:

§      OB - Previous Month's CB of Part C

§      Debits&Credits  -Results of Division in Part B - Posted from Transfer Certificate (TC)

§      Balance (if any) - Susceptible of verification with the balance (of unadjusted Account Current)

§      Closing of Part C

 

 

Grand Totals of

Coaching

Goods

Sundry

Other Railways

Deposit Pvt Cos

Transcribed to Part D

From which, a Journal Voucher is prepared and incorporated in General Books

 

Points to be considered/kept in mind while compiling Part C :

1.       Ledger Account of the Home railway.

2.       Separately for Coaching and Goods.

3.       Deals with Traffic Accounts & Other Railways.

4.       Totals transcribed from Part A & Part B (Net only)

5.       Adjustment Account (Net Only)-

6.       Inter Rly and Intra Rly transactions (E-recon)

7.       CASH, JV,s  passing through Traffic Accounts- RO/PO/RV

8.       Balance Sheet transfers for Passengers (includes Refunds of Fares & Internal adjustments) ,Other Coaching and Goods (Refunds & Internal adjustments)

9.       Sundry Earnings arising from other accounting units (E-recon, Etc).

10.   Apportionment within the Railways. Where there is PPP entity.

11.   Originating Earnings arising out of MIB-PRS SITE SUM terminals.

Part D - Abstract of Earnings & Statement of Balances

§      Comprises of Journal Entry and Two Statements

Specimen Journal Entry

Date

Transaction

Debit

Credit

31.01.2020

Traffic A/c Dr

Rs. 100

 

 

         To Coaching Earnings (X) A/c                                Cr

 

Rs. 30

 

         To Goods Earnings (Y) A/c                                     Cr

 

Rs. 40

 

         To Sundry Earnings (Z) A/c                                    Cr

 

Rs.   5

 

         To Other Railways A/c                                           Cr

 

Rs. 20

 

         To Deposit Private Company A/c                         Cr

 

Rs.   5

 

(Being the month transactions accounted in the Books)

 

 

 

§      Debit side of Traffic A/c - Total Debits (excl: OB) should be journalised

§      Before doing so, the amount of vouchers should be excluded.  Because it is accounted twice in Part A and Part B.

§      Statement - 1 - Details of clearance to Other Railways & Deposit Private Company

§      Statement - 2  - Reconciliation of Traffic Book balances with General Books 

 

§      Comparison  - Traffic Book with Main Ledger

§      Totals of Coaching and Goods Traffic Book with General Books.  Difference (if any) existed, it is "Cash In Transit" only.

1.       Importance of PART D :

2.       PART D comprises of Grand Totals of Part C for Coaching, Goods and Sundry.

3.       Monthly Journal Entry. Final traffic JV for  G Books of railways.

4.       Debit side of Traffic Account  is journalized.

5.       Abstract X, Abstract Y and Abstract Z. – Credit Side

6.       Facilitates Finalization of Final Account Current of the  Railway.

7.       Traffic Account  is a Suspense Account.

8.       Traffic Account is Debtor for All Earnings & Creditor for all Recoveries.

9.       Balance representsunrealized earnings

10.    It is a Link between Commercial and Government Accounting

Account Current:

§       Copy of Ledger Account of Other Railways & Deposit Private Company in the books of Home Railway.

§      One Account Current - prepared for both Coaching and Goods

§      Net result in favor of or against the Railway Worked out.

§      Where the Home Railway is creditor  -  The Account Current should be sent to the Debtor Railway.

§      TC - Transfer Certificate from Other Railways Account Current  -  Debit Should be accepted.

§      As a rule, TC should be accepted in full by the Debtor Railway.  If any errors noticed, the same will be rectified in subsequent month only. 

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