Podcast
Questions and Answers
What does 'Traffic Suspense' represent?
What does 'Traffic Suspense' represent?
- The sum of all coaching and sundry earnings.
- The total of all unrealized earnings that is not yet received.
- The difference between gross traffic receipts and gross earnings. (correct)
- The total revenue generated from passenger and goods transport.
Which of the following is NOT a stated reason for the occurrence of traffic suspense?
Which of the following is NOT a stated reason for the occurrence of traffic suspense?
- High volume of transactions which need to be cleared.
- Excessive staff training and coaching. (correct)
- Late distribution of circulars.
- Non-adherence to established guidelines.
According to the provided material, what is the nature of the balance within the 'Traffic Suspense' head?
According to the provided material, what is the nature of the balance within the 'Traffic Suspense' head?
- It's a credit balance, indicating a gain.
- It's a debit balance, indicating an unrealized part of earnings. (correct)
- It can be either debit or credit, depending on the month.
- It is a zero balance as it is merely a suspense account.
Which component is explicitly mentioned as a part of 'Traffic Suspense'?
Which component is explicitly mentioned as a part of 'Traffic Suspense'?
What document is used to debit a station when a financial discrepancy is found during an internal check?
What document is used to debit a station when a financial discrepancy is found during an internal check?
What does ‘Cash in Transit’ refer to, within the context of traffic suspense?
What does ‘Cash in Transit’ refer to, within the context of traffic suspense?
What is the impact of unrealized earnings reflected in Traffic Suspense on a government's financial position?
What is the impact of unrealized earnings reflected in Traffic Suspense on a government's financial position?
Which of these is NOT a component of Station Outstandings under Class B?
Which of these is NOT a component of Station Outstandings under Class B?
What happens when a Station Master objects to a debit mentioned on an Error Sheet?
What happens when a Station Master objects to a debit mentioned on an Error Sheet?
What is the role of the Cash Remittance Note (C.R. Note) in managing cash from stations?
What is the role of the Cash Remittance Note (C.R. Note) in managing cash from stations?
How are 'base coins, forged notes and short remittances' classified in the 'Traffic Suspense' context?
How are 'base coins, forged notes and short remittances' classified in the 'Traffic Suspense' context?
How are 'Disputed Debits' cleared?
How are 'Disputed Debits' cleared?
What is the main outcome of the process of comparing cash received at the cash office with the Cash Remittance Note?
What is the main outcome of the process of comparing cash received at the cash office with the Cash Remittance Note?
What does 'AOB' stand for in the context of railway accounting?
What does 'AOB' stand for in the context of railway accounting?
Which of the following is associated with the 'Accounts Office Balance'?
Which of the following is associated with the 'Accounts Office Balance'?
What does the acronym 'AOB' stand for?
What does the acronym 'AOB' stand for?
How are outstandings in the AOB typically cleared?
How are outstandings in the AOB typically cleared?
What is 'Cash in Transit' primarily associated with?
What is 'Cash in Transit' primarily associated with?
What is the initial step after noticing a financial discrepancy during an internal check?
What is the initial step after noticing a financial discrepancy during an internal check?
What does IGAA stand for?
What does IGAA stand for?
What term is used for cash for which credit is taken by the Station Master (SM) in the balance sheet, but the cash is not yet acknowledged by the Cash office?
What term is used for cash for which credit is taken by the Station Master (SM) in the balance sheet, but the cash is not yet acknowledged by the Cash office?
If a chest of cash is not received and the amount not accounted for, where is it reflected in the Traffic Books accounts?
If a chest of cash is not received and the amount not accounted for, where is it reflected in the Traffic Books accounts?
What is the primary purpose of introducing 'Demands Recoverable'?
What is the primary purpose of introducing 'Demands Recoverable'?
When amounts due for the Railway are raised in the form of bills, where is it debited and credited?
When amounts due for the Railway are raised in the form of bills, where is it debited and credited?
What does the closing balance of 'Demands Recoverable' represent?
What does the closing balance of 'Demands Recoverable' represent?
Which of the following is NOT an example of dues that fall under 'Demands Recoverable'?
Which of the following is NOT an example of dues that fall under 'Demands Recoverable'?
What is the effect of clearance under 'Demands Recoverable' on Traffic Suspense?
What is the effect of clearance under 'Demands Recoverable' on Traffic Suspense?
Which of the following is a focus area for improving clearance of outstanding amounts?
Which of the following is a focus area for improving clearance of outstanding amounts?
What is the relationship of 'Demands Recoverable' to Government and Commercial Accounts?
What is the relationship of 'Demands Recoverable' to Government and Commercial Accounts?
Why is the monitoring of cash bag movement important?
Why is the monitoring of cash bag movement important?
Which of the following outcomes indicates that a debit has been accepted by the Station Master?
Which of the following outcomes indicates that a debit has been accepted by the Station Master?
What happens when a debit is classified as disputed by the Station Master?
What happens when a debit is classified as disputed by the Station Master?
What does the process of credit advice issuance relate to?
What does the process of credit advice issuance relate to?
Under which condition is Traffic Suspense adjusted in the balance sheet?
Under which condition is Traffic Suspense adjusted in the balance sheet?
Which component signifies an amount raised but not yet cleared in Traffic Suspense?
Which component signifies an amount raised but not yet cleared in Traffic Suspense?
What role does the Accounts Office have in handling disputed debits?
What role does the Accounts Office have in handling disputed debits?
What does 'Admitted Debits' typically involve?
What does 'Admitted Debits' typically involve?
What does the 'Accounts Office Balance Sheet (AOB)' primarily encompass?
What does the 'Accounts Office Balance Sheet (AOB)' primarily encompass?
Which of the following accurately describes 'Disputed Debits' status?
Which of the following accurately describes 'Disputed Debits' status?
What are 'Lump Sum Payments' categorized as in the context of Traffic Suspense?
What are 'Lump Sum Payments' categorized as in the context of Traffic Suspense?
What does the clearance under 'Demands Recoverable' lead to?
What does the clearance under 'Demands Recoverable' lead to?
Which of the following is a consequence of cash that is acknowledged later by the Cash office?
Which of the following is a consequence of cash that is acknowledged later by the Cash office?
What are bills raised against the lease of railway land classified as?
What are bills raised against the lease of railway land classified as?
Why is staff training important in the context of managing cash?
Why is staff training important in the context of managing cash?
What is represented by the closing balance of 'Demands Recoverable'?
What is represented by the closing balance of 'Demands Recoverable'?
What is a primary responsibility concerning cash bag movement?
What is a primary responsibility concerning cash bag movement?
How are amounts due for railway services initially addressed when raised in bills?
How are amounts due for railway services initially addressed when raised in bills?
What best describes the purpose of 'Demands Recoverable'?
What best describes the purpose of 'Demands Recoverable'?
Which of the following is a key focus in improving financial management related to cash?
Which of the following is a key focus in improving financial management related to cash?
What is the significance of the relationship between Government Accounts and Commercial Accounts?
What is the significance of the relationship between Government Accounts and Commercial Accounts?
What is primarily indicated by the existence of Traffic Suspense?
What is primarily indicated by the existence of Traffic Suspense?
Which of the following factors contributes to Traffic Suspense as per the reasons stated?
Which of the following factors contributes to Traffic Suspense as per the reasons stated?
Class A Station Outstandings primarily include which of the following?
Class A Station Outstandings primarily include which of the following?
What condition is described as a Debit Balance within the Traffic Suspense head?
What condition is described as a Debit Balance within the Traffic Suspense head?
Which of the following is NOT classified under Demands Recoverable?
Which of the following is NOT classified under Demands Recoverable?
Which component of Traffic Suspense is noted for affecting liquidity and cash position of the Government?
Which component of Traffic Suspense is noted for affecting liquidity and cash position of the Government?
What classification does Class A of Station Outstandings primarily focus on?
What classification does Class A of Station Outstandings primarily focus on?
What impact does improper preparation of returns have in the context of Traffic Suspense?
What impact does improper preparation of returns have in the context of Traffic Suspense?
Which aspect of revenue collection is emphasized within the context of Traffic Suspense?
Which aspect of revenue collection is emphasized within the context of Traffic Suspense?
What best describes 'Cash in Transit' within the Traffic Suspense framework?
What best describes 'Cash in Transit' within the Traffic Suspense framework?
What is the immediate next step after identifying the staff responsible for a financial loss, related to an admitted debit?
What is the immediate next step after identifying the staff responsible for a financial loss, related to an admitted debit?
When the Accounts office or a TIA withdraws an Error Sheet, what specific document is issued?
When the Accounts office or a TIA withdraws an Error Sheet, what specific document is issued?
What type of payments are classified as 'Admitted Debits'?
What type of payments are classified as 'Admitted Debits'?
How is a 'Disputed Debit' settled?
How is a 'Disputed Debit' settled?
What does 'Cash in Transit' signify in the context of railway accounts?
What does 'Cash in Transit' signify in the context of railway accounts?
What action signifies the start of an admitted debit process with regards to station outstandings?
What action signifies the start of an admitted debit process with regards to station outstandings?
What does IGAA refer to in the context of AOB?
What does IGAA refer to in the context of AOB?
Which body is responsible for verifying the contentions of the Station Master when a debit is disputed?
Which body is responsible for verifying the contentions of the Station Master when a debit is disputed?
What happens to a station's account when there is an undercharge or unaccounted amount during an internal check?
What happens to a station's account when there is an undercharge or unaccounted amount during an internal check?
What is the main function of the Accounts Office Balance sheet (AOB)?
What is the main function of the Accounts Office Balance sheet (AOB)?
What does 'Traffic Suspense' represent in railway accounting?
What does 'Traffic Suspense' represent in railway accounting?
Which of the following is a potential cause for 'Traffic Suspense'?
Which of the following is a potential cause for 'Traffic Suspense'?
Within the context of 'Traffic Suspense', what is 'Station Outstandings' primarily comprised of?
Within the context of 'Traffic Suspense', what is 'Station Outstandings' primarily comprised of?
How are base coins, forged notes and short remittances initially addressed when encountered in the cash office?
How are base coins, forged notes and short remittances initially addressed when encountered in the cash office?
What does the term 'Accounts Office Debits' refer to in the context of 'Traffic Suspense'?
What does the term 'Accounts Office Debits' refer to in the context of 'Traffic Suspense'?
What is the primary function of the Cash Remittance Note (C.R. Note)?
What is the primary function of the Cash Remittance Note (C.R. Note)?
If there is a shortage in remittances when the station cash is checked, how is the difference classified as per the provided material?
If there is a shortage in remittances when the station cash is checked, how is the difference classified as per the provided material?
Which of these factors is likely to increase Traffic suspense in the railway accounts?
Which of these factors is likely to increase Traffic suspense in the railway accounts?
What kind of balance is consistently maintained under the 'Traffic Suspense' head?
What kind of balance is consistently maintained under the 'Traffic Suspense' head?
How does 'Traffic Suspense' impact the government's overall liquidity?
How does 'Traffic Suspense' impact the government's overall liquidity?
What is the initial accounting treatment when a station takes credit for cash, but it has not been acknowledged by the Cash office?
What is the initial accounting treatment when a station takes credit for cash, but it has not been acknowledged by the Cash office?
What is the purpose of the 'Samiksha' process related to traffic suspense?
What is the purpose of the 'Samiksha' process related to traffic suspense?
What accounting action occurs when the railway raises bills for dues related to land leases?
What accounting action occurs when the railway raises bills for dues related to land leases?
According to the document, what does the closing balance of 'Demands Recoverable' represent?
According to the document, what does the closing balance of 'Demands Recoverable' represent?
Which action directly results in a reduction of ‘Traffic Suspense’?
Which action directly results in a reduction of ‘Traffic Suspense’?
Which of the following is a purpose of the 'Demands Recoverable' account?
Which of the following is a purpose of the 'Demands Recoverable' account?
What is one of 'LINK HEADS' that connects Government Accounts and Commercial Accounts mentioned in the text?
What is one of 'LINK HEADS' that connects Government Accounts and Commercial Accounts mentioned in the text?
What is the accounting treatment when cash is received from parties against outstanding bills for land leases?
What is the accounting treatment when cash is received from parties against outstanding bills for land leases?
What is the significance of monitoring cash bag movement in railway traffic accounting?
What is the significance of monitoring cash bag movement in railway traffic accounting?
Which of these actions would LEAST directly address an increase of outstanding dues under 'Demands Recoverable'?
Which of these actions would LEAST directly address an increase of outstanding dues under 'Demands Recoverable'?
Flashcards
Traffic Suspense
Traffic Suspense
The difference between total traffic revenue received and total revenue earned. Measures unrealized traffic earnings.
Components of Traffic Suspense
Components of Traffic Suspense
Consists of station outstandings, accounts office balance sheet (AOB), cash in transit, and demands recoverable.
Accrued Earnings
Accrued Earnings
Earnings that have been accrued but not yet physically collected.
Station Outstandings
Station Outstandings
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Station Outstandings
Station Outstandings
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Station Outstandings (Class A)
Station Outstandings (Class A)
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Cash Office Disallowances
Cash Office Disallowances
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Accounts Office Debits
Accounts Office Debits
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Impact of Traffic Suspense
Impact of Traffic Suspense
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Reasons for Traffic Suspense
Reasons for Traffic Suspense
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Error Sheet
Error Sheet
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Admitted Debits
Admitted Debits
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Disputed Debits
Disputed Debits
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Verifying Disputed Debits
Verifying Disputed Debits
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Credit Advice
Credit Advice
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Freight on Goods/Parcels Not on Hand
Freight on Goods/Parcels Not on Hand
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Freight-Goods/Parcels on Hand
Freight-Goods/Parcels on Hand
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Accounts Office Balance Sheet (AOB) Outstandings
Accounts Office Balance Sheet (AOB) Outstandings
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Cash in Transit
Cash in Transit
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IGAA (Inter Governmental Adjustment Advice)
IGAA (Inter Governmental Adjustment Advice)
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Demands Recoverable
Demands Recoverable
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Traffic Suspense Clearance
Traffic Suspense Clearance
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Bills Raised for Government Leases
Bills Raised for Government Leases
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Bills Raised for Union & Association Buildings
Bills Raised for Union & Association Buildings
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Siding Charges
Siding Charges
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Traffic Suspense Defined
Traffic Suspense Defined
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Demands Recoverable as a Link
Demands Recoverable as a Link
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Traffic Suspense Management
Traffic Suspense Management
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What is Traffic Suspense?
What is Traffic Suspense?
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What are Station Outstandings?
What are Station Outstandings?
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What are Class A Station Outstandings?
What are Class A Station Outstandings?
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What are Accounts Office Debits?
What are Accounts Office Debits?
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What is the Primary Cause of Traffic Suspense?
What is the Primary Cause of Traffic Suspense?
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What is another Common Cause of Traffic Suspense?
What is another Common Cause of Traffic Suspense?
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How can Traffic Suspense be Reduced?
How can Traffic Suspense be Reduced?
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Timely Review with Executives
Timely Review with Executives
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What are the main components of Traffic Suspense?
What are the main components of Traffic Suspense?
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Why does Traffic Suspense occur?
Why does Traffic Suspense occur?
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How is Traffic Suspense managed effectively?
How is Traffic Suspense managed effectively?
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What are Demands Recoverable?
What are Demands Recoverable?
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What is Cash in Transit?
What is Cash in Transit?
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How is Traffic Suspense cleared?
How is Traffic Suspense cleared?
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Credits Taken by Stations
Credits Taken by Stations
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Study Notes
Introduction to Traffic Suspense
- Topic: Traffic Suspense (Yatayat Sandehi katha)
- Purpose: Presentation on traffic suspense in Indian Railways.
- Explanation: This involves discrepancies in the financial records, and includes station outstandings, AOB, cash in transit, and demands recoverable components, and reflects unrealized earnings.
Definition of Traffic Suspense
- Definition: The difference between Gross Traffic Receipts and Gross Earnings.
- Explanation: Represents unrealized traffic earnings, the carrying balance (CB) of the traffic suspense head (temporary unpaid amounts).
- Nature of Balance: Always a debit balance.
Reasons for Traffic Suspense
- Non-adherence to rules: Failure to follow existing railroad regulations.
- Delayed circulars: Lack of timely distribution of important notices.
- High volume of transactions: Large number of complex financial entries.
- Poor supervision: Inadequate monitoring and oversight.
- Complex procedures: Confusing and intricate sets of rules.
- Inadequate staff preparation: Insufficient employee training or readiness.
Components of Traffic Suspense
- Station Outstandings: Uncollected amounts owed to the railway for services. Includes coaching and goods outstandings.
- Accounts Office Balance Sheet (AOB): Unrecorded amounts, balances not updated in the company accounts, including military warrants of the Central Government for Railways, and various other organizations.
- Cash in Transit: Money collected but not yet recorded or sent to the bank.
- Demands Recoverable: Amounts owed to the company by various parties, such as rent for land, and other services.
Further Classification of Station Outstandings
- Class A: Includes cash office disallowances (incorrect entries for currency notes or short remittances) of base coins, forged notes, and unauthorized entries.
- Class B: Details include freight/goods/parcels on hand which are yet to be delivered but are recorded in accounts (not in existence), freight on goods/parcels not on hand (recorded in account but not existing), overcharge sheets requiring certification, wharfage and demurrage, siding charges, admitted and disputed debits, and miscellaneous items.
Accounts Office Debits
- Definition: Reflects errors in accounting or financial discrepancies requiring correction during internal checks.
- Occurs when: Errors generate financial loss, amounts collected are insufficient, or amounts are not accounted for correctly.
Admitted vs. Disputed Debits
- Admitted: When the station master agrees with the reasons for the debit, appropriate staff are identified to recover the amounts, and the debit is resolved.
- Disputed: If the station master disagrees with the reasons for a debit, it becomes a disputed debit, reviewed by authorities for verification, and resolved with credit advice if needed.
Recovery/Disposal Methods
- Admitted Debits: Payment (salary, lump sum payment).
- Disputed Debits: Resolution through special credit advice, waivers, or writing off the debits, reconciliation, and/or correction.
AOB – Accounts Office Balance Sheet
- Includes: Unaccounted carriage bills raised against paying and accounting offices for various government agencies (CRPF, BSF, CISF, IB, etc.), Accountant General Offices for State Govts (PW, Defense), and Military warrants.
- Outstandings: Vouchers still pending clearing.
- Clearing Method: Clearing vouchers with receipts, check advice, and inter-governmental adjustments (IGAA).
Cash in Transit
- Description: Money collected and sent to the cash office to be remitted but, yet unaccounted for in the accounts.
- Result: Recorded as part of cash in transit in the Traffic Books.
- Station Credit: Stations document cash in transit on balance sheets, irrespective of whether the cash office acknowledges it, to finalize station balance sheets
Clearance
- Timely review with executives.
- Staff training.
- Monitoring cash bag movement.
- Defining staff responsibility.
- Prompt raising of carriage bills.
- Thorough bill checks before submission.
Bills Recoverable
- Definition: A system used to account for payments for services (water, electricity, staff charges, etc.) and conservancy charges.
- Procedure: Debited to concerned revenue demands and credited to cash account, avoiding separate "Bills Recoverable" accounts.
- Exceptions: Water charges are credited directly to earnings, not to revenue demands.
- Examples include costs for commercial staff/other staff (engineering) deputed to sidings, maintenance/wagon repair charges, water bills, and electricity bills.
Demands Recoverable
- Description: Amounts owed to the company for rent, lease of land/buildings, and charges like maintenance, interest and inspection.
- Process: Debited to "Demands Recoverable" and credited to Abstract Z earnings account.
- Components: Land rent, bulk oil installations, maintenance, rent on buildings, and upkeep of ROBS, FOBs and level crossings.
- Results: Reduces traffic suspense and improves efficiency.
- Introduced from 01.04.1988. Purpose: Bring all dues from rent/lease, railway land, buildings, interest, and siding maintenance charges. These dues can be collected through bills.
General Notes
- These components work together to manage railway finances and ensure accuracy and efficiency in operations. These procedures ensure accounting accuracy and operational efficiency, resolving discrepancies effectively.
- Procedures for clearing or adjusting entries, and handling discrepancies (admitted or disputed debits) are critical for the smooth running of the railway operations.
- Bills are raised towards land lease and to government organizations for services like defense and postal.
- Bills raised for service buildings used by various groups are also included.
- The "Demands Recoverable" closing balance represents outstanding amounts.
- Demands Recoverable form part of Sundry Earnings (Abstract Z). This component reduces Traffic Suspense, improving operational efficiency. This connects government and commercial accounts.
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