Station Balance Sheet - Hindi Audio by Shri Shashikant, SSO(A)/ Bhusaval

Hindi Audio clipping of Station Balance Sheet by

 Shri Shashikant, SSO(A) and Sr. Instructor (Accounts) 

at ZRTI, Bhusaval (Mobile Number: 7588821939 )

Click for Hindi Audio on Station Balance Sheet

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 February, 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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