Railway Accounts Department Examinations

Showing posts with label Traffic suspense. Show all posts
Showing posts with label Traffic suspense. Show all posts

Tuesday, May 29, 2018

Traffic Suspense

Traffic Suspense

2016 year - Station Accounts

             (i) What is Traffic Suspense?  ( 5marks)

(ii) Briefly explain the components of Traffic Suspense (5 marks)

(iii) How is Traffic Suspense cleared (5 marks)

(iv) Do you have any suggestions to improve the present system of Traffic Suspense clearance.(5 marks)


(i) What is Traffic Suspense?  ( 5marks)
Traffic suspense represents the earnings accrued at Stations or otherwise but remains unrealised.

(ii) Briefly explain the components of Traffic Suspense (5 marks)

A) Station Outstandings :- Comprise of freight outstanding in respect of goods  on hand and not in hand, freight and demurrage awaiting realization from major parties such as power houses and State electricity boards, remission orders/CCOs, Credit authority awaited and accounts office debits. (admitted and disputed)

B) Accounts Office Balance sheet - Prepared for the purpose of taking the Carriage Bills into account and of watching their realization from the firms or departments concerned, as also for incorporating in accounts the traffic cash received otherwise than through the Station Balance Sheets (e.g. workshop profit, advertisement fees, sale of grass, fares of coupons sold by Tourist Agents, fares represented by Suburban Tickets sold in Head quarter offices, etc)

C) Cash in transit - Stations take credit in their Balance Sheets for cash realized by them in the month irrespective of whether it is remitted to and acknowledged by the Cashier in that month or in the subsequent month. Such station cash for which credit has been allowed to the Stations in one month but, which has been received in the Cash Office after the third of the following month and consequently included in the General Books in the following month, is called Cash in transit.

D) Demands recoverable - Purpose to bring into account all dues pertaining to
 (a) Land rent charges for Engineering and commercial plots. (b) Interest, maintenance charges and inspection charges for sidings. (c) Rent of buildings. (d) Maintenance charges for ROBs, FOBs and level crossings.

E) Miscellaneous

(iii) How is Traffic Suspense cleared (5 marks)

·         Admitted debits  are cleared by (i)  Paid in cash by the staff responsible;
(ii) Recovered through the salary bill of the staff responsible;(iii) Transferred to another station; (iv) If irrecoverable, the same should be written off by the competent authority. 

·         Objected debits:  - Clearance – On receipt and after examination in the Outstanding branch, the case is sent to TAO, where if the objection is found valid, necessary credit advice will be issued to the Station, who will take special credit in the Balance sheet on hand on its authority, sending the same in support of special credit.  If the objection is found incorrect, the case will be returned to the outstanding section with remarks rebutting the objection and the outstanding branch will inform the Station Master to bring the same under Admitted Debit and arrange to clear the debit.

·         Freight outstanding on goods/parcels on hand – cleared through delivery to the consignees. In the case of consignees not forthcoming for taking delivery, disposal in arranged by transfer to LPO or Auction Sale. For consignments received without invoices, booking stations are referred to ascertain the names of consignees for ensuring delivery

·         Freight outstanding on goods/parcels not to hand – Efforts are one made to trace them by reporting the matter to the Booking Station / Last train formation stations and also to the Claims branch.

·         Freight of invoices /PWP awaiting clearance through certified overcharge sheets.- cleared through certified overcharge sheets/special credits in Balance Sheets vice previous accountal of Memo deliveries etc.

·         Demurrage and  wharfage awaiting clearance through remission orders. – cleared on the basis of remission only as and when received.

·         Outstanding recoveries from power houses etc against match deliveries etc – to clear , it is enjoined upon the Station to arrange the periodic reconciliation with the Siding owners.(power houses) and arranging recovery of the net dues and adjustment of the balance through, certified overcharge sheets etc.

·         Imprest cash  -  These outstandings are continuing in nature.  However , obsolete tariffs and time tables etc are returned and credit taken for the value thereof.

·         Balances under AOB should normally be cleared within 3 months as these mostly pertain to Bills issued to Govt depts/ministries.  These should be pursued vigorously. On occasions, the Government depts dispute the debits such as those arising from revision charges for haulage of postal vehicles. These should be reported to Railway Board promptly for taking up with the Ministries concerned at higher level.

·         Duly watching the items under Demands Recoverable and pursuing with the parties if delays in realisation.
(iv) Do you have any suggestions to improve the present system of Traffic Suspense clearance.(5 marks)
1.   PCCM to be strengthened. Non-availability of qualified TIAs in some Zonal Railways resulting in having no PCCM Sr.TIAs.

2.   Quarterly meetings should be held at CCM level with Sr.DCMs/ CIs/ Sr.TIAs.

3.   Court cases are to be monitored at appropriate level.

4.   Records pertaining to Disputed debits/ court cases are to be preserved irrespective of preservation time prescribed by Codes/ Rules.

5.   In case of Admitted debits of staff, recovery to be commenced and in case of retirements, ‘No Due Certificate’ to be obtained from Traffic Accounts Branch.

6.   Efforts to be made to recover from settlement dues/ relief of pension.