Apportionment of Earnings in Railways
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Questions and Answers

What is the primary purpose of apportioning earnings between railways?

  • To complicate the accounting process for through traffic.
  • To ensure all railways receive equal revenue, regardless of their involvement.
  • To delay the settlement of through traffic transactions and to create disputes.
  • To fairly distribute revenue based on the distance and effort contributed by each railway. (correct)
  • Which type of traffic is NOT subject to apportionment?

  • Passenger traffic using PRS.
  • Earnings from luggage. (correct)
  • Parcel Traffic
  • Goods traffic.
  • How often are through traffic transactions settled between railways based on apportionment?

  • Monthly (correct)
  • Daily
  • Yearly
  • Weekly
  • What is the basis for apportioning revenue between different railways?

    <p>The leg-wise distance by which traffic is carried, using the shortest route unless rationalized. (C)</p> Signup and view all the answers

    What is deducted from the gross earnings before apportionment?

    <p>Transhipment costs (C)</p> Signup and view all the answers

    What does 'rationalization' refer to in the context of route determination for apportionment?

    <p>Only notified routes (D)</p> Signup and view all the answers

    What is the main function of the Centralised Apportionment System (CAS)?

    <p>To facilitate the apportionment of funds between different railways. (B)</p> Signup and view all the answers

    Which railway is designated as the nodal railway for the Centralised Apportionment System (CAS)?

    <p>The Central Railway (C)</p> Signup and view all the answers

    Which book contains the details of apportionment of funds between railways?

    <p>Part B of the Traffic Book (B)</p> Signup and view all the answers

    When is the matrix table containing the apportioned earnings prepared?

    <p>By the 4th of the following month. (C)</p> Signup and view all the answers

    How are terminal costs for railway freight typically shared?

    <p>Shared between the originating and destination railways only. (C)</p> Signup and view all the answers

    What is the terminal cost per tonne based on this content?

    <p>Rs. 26 for both originating and destination railways combined. (C)</p> Signup and view all the answers

    How are freight charges apportioned after deducting transhipment, terminal cost, and GST?

    <p>Based on the distance each railway's network was used. (B)</p> Signup and view all the answers

    What percentage of UTS transaction data is provided by CRIS for apportionment purposes?

    <p>97% (A)</p> Signup and view all the answers

    How is the data for Passenger Reservation System (PRS) processed for apportionment?

    <p>On the basis of originating railway. (A)</p> Signup and view all the answers

    How is the apportionment percentage for various railways typically calculated?

    <p>On the average of 11th to the 20th of every month. (B)</p> Signup and view all the answers

    What financial document is used as the basis for apportionment of goods traffic?

    <p>Invoices generated and submitted to the TAO. (D)</p> Signup and view all the answers

    If a train's route is diverted after invoices have been submitted to the TAO, what happens?

    <p>The apportionment is made based on the original route. (D)</p> Signup and view all the answers

    What does the term 'Local + part of Fgn traffic' refer to in the context of originating earnings?

    <p>Earnings from local goods traffic and part of the originating share from foreign traffic. (C)</p> Signup and view all the answers

    In the example provided, what is the apportioned earnings percentage of a railway with total originating earnings of 100, a retained portion of 90, inward share of 30 and outward share of 10?

    <p>110% (B)</p> Signup and view all the answers

    What is a key factor in determining the compensation for enroute railways?

    <p>The specific expenses incurred by enroute railways (B)</p> Signup and view all the answers

    What is the frequency for the completion of accounts related to through traffic transactions?

    <p>Monthly (A)</p> Signup and view all the answers

    Which type of earnings is explicitly excluded from apportionment?

    <p>Luggage earnings (B)</p> Signup and view all the answers

    What method is used to calculate apportionment among railways?

    <p>By considering leg-wise distance of traffic carried (D)</p> Signup and view all the answers

    What is the difference between originating and enroute railways in terms of financial burden?

    <p>Enroute railways incur more expenses than originating railways (D)</p> Signup and view all the answers

    What costs are subtracted from the gross earnings prior to apportionment?

    <p>Transhipment costs (D)</p> Signup and view all the answers

    Which aspect does not influence the rationalization of route choices during apportionment?

    <p>Historical performance of railways (D)</p> Signup and view all the answers

    What is the purpose of the Centralized Apportionment System (CAS)?

    <p>To provide a framework for easier financial management of railways (B)</p> Signup and view all the answers

    Which statement about the issuance of vouchers for through traffic is accurate?

    <p>A single voucher is issued at the originating station (A)</p> Signup and view all the answers

    Which of the following statements about terminal costs is accurate?

    <p>Terminal costs are fixed at Rs.26 for both originating and destination railways. (D)</p> Signup and view all the answers

    What is the role of CRIS in the apportionment process?

    <p>CRIS provides processed Railway Receipt data for apportionment. (D)</p> Signup and view all the answers

    Which aspect does NOT affect the apportionment of earnings among railways?

    <p>Transportation cost for rolling stock. (B)</p> Signup and view all the answers

    How is the retained portion of earnings calculated based on the given example?

    <p>By subtracting outward share from total originating earnings. (B)</p> Signup and view all the answers

    What is the purpose of deducting a 5% charge from terminal charges?

    <p>To cover administrative costs. (A)</p> Signup and view all the answers

    What is the relationship between the average calculation period and apportionment percentages?

    <p>The average is recalculated monthly and used for extrapolation. (C)</p> Signup and view all the answers

    Which financial aspect is exclusively received by the originating railway?

    <p>Terminal charges for freight. (D)</p> Signup and view all the answers

    What determines the goods traffic apportionment process?

    <p>Invoicing details submitted to the TAO. (C)</p> Signup and view all the answers

    What is the total resulting app earnings of a railway with an originating earning of 100, retained portion of 90, inward share of 30, and outward share of 10?

    <p>110 (B)</p> Signup and view all the answers

    In what situation might the diversion of traffic occur at a party request?

    <p>When the original route is congested. (A)</p> Signup and view all the answers

    What is the primary function of the monthly settlement of through traffic transactions?

    <p>To distribute earnings among railways based on net apportionment results. (D)</p> Signup and view all the answers

    Which entity is NOT involved in the apportionment process?

    <p>Private freight companies. (D)</p> Signup and view all the answers

    What is the geographical scope of the earning apportionment process?

    <p>Zonal level (C)</p> Signup and view all the answers

    Which of these is a crucial factor in the amount of compensation provided for enroute railways?

    <p>The distance of leg-wise traffic carried. (C)</p> Signup and view all the answers

    What is the 'matrix table' used for in the apportionment process?

    <p>To display the net results of apportionment. (B)</p> Signup and view all the answers

    Which cost is specifically deducted before the apportionment of earnings?

    <p>Transhipment costs. (B)</p> Signup and view all the answers

    What aspect is considered to determine the route for apportionment?

    <p>Shortest route unless rationalized. (D)</p> Signup and view all the answers

    What type of cost compensation does the originating/destination railway receive on top of leg-wise proportion?

    <p>Terminal cost (B)</p> Signup and view all the answers

    What is the typical time frame for the completion of railway accounting and settlements?

    <p>Each complete calendar month (C)</p> Signup and view all the answers

    Which of the following is NOT apportioned?

    <p>Luggage (D)</p> Signup and view all the answers

    Which of the following best describes how terminal costs are applied?

    <p>Shared between originating and destination railways. (A)</p> Signup and view all the answers

    What is the primary reason for apportioning freight charges based on distance?

    <p>To distribute earnings fairly based on the distance each railway covers. (A)</p> Signup and view all the answers

    How are 'Busy season surcharges' typically handled in the apportionment process?

    <p>They are apportioned amongst the relevant railways. (B)</p> Signup and view all the answers

    What is the significance of the data processed by CRIS?

    <p>It serves as a basis for apportionment of earnings covering a majority of transactions. (B)</p> Signup and view all the answers

    Why are averages worked out using data from the 11th to the 20th of each month?

    <p>To create a percentage calculation to extrapolate for the whole month. (D)</p> Signup and view all the answers

    What specifically is the financial outcome of the apportionment process transcribed to Part ‘C’?

    <p>The net result of zonal railway debits and credits. (B)</p> Signup and view all the answers

    What is the impact of traffic diversion on the apportionment process?

    <p>It may be accommodated based on operational reasons and at party requests. (D)</p> Signup and view all the answers

    What happens to the terminal charges after they are deducted?

    <p>They are retained solely by the originating railway. (D)</p> Signup and view all the answers

    What does the term ‘outward share’ represent in the calculation provided?

    <p>The portion of earnings that is allocated out to other railways. (B)</p> Signup and view all the answers

    According to the content, which of the following financial aspects is NOT subject to apportionment?

    <p>GST (A)</p> Signup and view all the answers

    Flashcards

    Apportionment of Earnings

    The process of dividing earnings from traffic carried over multiple railways among the participating railways.

    Through Traffic

    Traffic that originates on one railway and travels through another railway before reaching its final destination.

    Voucher

    A document issued by the originating station for traffic carried over multiple railways, encompassing all charges and details related to the shipment.

    Originating Railway

    The railway responsible for receiving the revenue from transported goods, even if the traffic travels on multiple railways.

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    Destination Railway

    The railway responsible for delivering the transported goods to their final destination.

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    Enroute Railways

    Railways that carry traffic between the originating and destination railways.

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    Terminal Cost

    The cost incurred by the originating and destination railways for handling and processing traffic at their terminals.

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    CAS (Centralized Apportionment System)

    The system used to centrally apportion earnings from through traffic among participating railways.

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    Rationalization

    A process where a shorter route is chosen for through traffic, potentially reducing distance and travel time.

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    Transhipment Cost

    A fixed charge deducted from earnings before apportionment, applied when goods are transferred between railways.

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    Busy Season Surcharge

    A surcharge applied during peak seasons to account for increased demand and activity.

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    Freight Charge Apportionment

    The process of dividing freight charges amongst different railways based on the distance traveled by the train.

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    CRIS (Computerized Reservation and Information System)

    The data source used to calculate the percentage of freight charges allocated to each railway.

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    Apportioned Ratio

    The percentage of freight charges retained by a railway after apportionment.

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    Inward Share

    The portion of freight charges allocated to a railway based on the distance traveled by a train.

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    Outward Share

    The portion of freight charges allocated to a railway based on the distance traveled by a train.

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    Traffic Diversion

    The process of adjusting freight charges based on changes in traffic flow, such as diversions or operational adjustments.

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    Invoice

    The primary document used for tracking goods movement and calculating freight charges.

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    Centralized Apportionment System (CAS)

    A system used for centralizing the apportionment of through traffic earnings among different railways, incorporating factors like distance traveled and originating revenue.

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    Study Notes

    Apportionment of Earnings

    • Earnings from traffic shared if carried by multiple railways, with only one receiving payment.
    • Through traffic, a single voucher issued by the initial station.
    • Earnings are apportioned after Accounts Office internal check.
    • Settlement happens monthly, based on net results of apportionment.
    • Apportionment period is the full calendar month.

    Why Apportionment

    • Today's traffic (goods and parcels) is often diverted; origination station records but traffic crisscrosses other railways.
    • En route railways incur expenses (track maintenance, fuel, staff, signaling, and electricity) that need compensation.
    • Origination and destination railways have additional expenses that are compensated.

    Apportionment by CRIS

    • Earlier done by RITES, at zonal, not divisional level.
    • Centralized Apportionment System (CAS).
    • Separate apportionment for coaching and goods traffic, dealt with in Traffic Book Part B.
    • Net result is transcribed to Part C of the book.
    • Matrix table ready by the 4th of the following month, distributed to all railways by CRIS.

    Earnings Apportioned

    • Apportionment is only for Through Traffic.
    • Passengers include PRS, UTS, and PCTs.
    • Goods and parcels traffic is apportioned.
    • Luggage, EFT, and HCD earnings are not apportioned.

    Apportionment of Goods

    • Apportionment is based on distance of the route; shortest route unless rerouted.
    • Only for notified routes.
    • Transhipment costs are deducted before apportionment, Rs.503 (formerly Rs.408) per tonne for the undertaking the transshipment.
    • Terminal costs (Originating and Destination) are shared among them for activities like marketing, rolling stock detention and shunting, etc. Cost: Rs 26 per tonne.

    Contd...

    • Busy season surcharge is included in apportionment.
    • GST is not apportioned.
    • After deducting transhipment, terminal, and GST costs, balance freight charges are apportioned based on distance between railways.
    • Railway Receipt data is accessed and used by CRIS.
    • Unmatched items, if any, are addressed.

    Apportionment of Passengers

    • Terminal charges are deducted (@5%) and the remainder is apportioned; only the originating railway receives the terminal charges.
    • Apportionment is based on actual distance, train, and route travelled.
    • CRIS provides data for 97% of UTS transactions; PCT provides 3%.
    • PRS, CRIS/SC process data for originating basis.
    • BPT and special trains on an actual basis.

    Apportionment of Parcels

    • 10-day average establishes the percentage of apportionment to various railways.
    • 11th-20th of the month is considered for the average calculation.
    • Average percentages are extrapolated to other periods.

    Exchange of JVs

    • Zonal railways' debits and credits are posted.
    • Net result is transcribed to Part C.

    Apportionment Methodology

    • Total originating earnings: 100
    • Retained portion (Local + part of foreign traffic): 90
    • Inward share: 30
    • Outward share: -120
    • App earnings of a railway: 110
    • Apportioned ratio of Railway: 110%

    Apportionment of Diverted Traffic

    • Apportionment of goods traffic based on invoices to the TAO.
    • Diversion permitted for operational reasons or party requests.
    • Diversions may occur on an ongoing basis.
    • Data is usually processed yearly for continuous diversions.

    Apportionment of Private Railways

    • Zonal railways do apportionment for private railways like KRCL, PIPAV, KUTCH, and HMRDA.
    • Private railways are treated similarly to zonal railways for apportionment.
    • Terminal cost is shared with private railways.
    • Apportionment is done monthly, based on the traffic traversed on the railway.

    Apportionment Matrix

    • Matrix for apportionment, involving multiple railways (CR, ER, NR, etc.,). A visual matrix is shown in the document.

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    Description

    This quiz explores the principles and processes of apportionment of earnings in railway traffic. It discusses the role of multiple railways in handling shared traffic, the mechanisms of financial settlements, and the impact of diverted traffic on expenses. Gain insights into the Centralized Apportionment System and the distinctions between coaching and goods traffic.

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