Traffic Book Overview and Parts A & B

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Questions and Answers

What is the main purpose of the Traffic Book?

To track the passenger services of the railway.

To compile all traffic earnings of the railway. (correct)

To analyze operational efficiencies of the railway.

To manage employee performance in railway operations.

Which part of the Traffic Book contains the earning accrued at stations?

Part C

Part D

Part A (correct)

Part B

Which of the following is NOT a part of the Traffic Book?

Ledger account of the Home Line

Adjustment or Division Sheets

Station Accounts

Financial Analysis Reports (correct)

What should be the basis for apportionment recorded in the Traffic Book?

Matrix generated through CAS Signup and view all the answers

How should the names of stations be organized in the Traffic Book Part A?

In geographical order Signup and view all the answers

What is the role of the Traffic Accounts office during the posting in Traffic Book Part A?

To make changes during internal checks. Signup and view all the answers

What is the significance of freezing the Station Balance Sheet in relation to the Traffic Book?

To prevent changes within the reporting month Signup and view all the answers

What should be excluded before posting the grand total of the debit side of the Traffic Account in the Journal Entry?

Amount of vouchers Signup and view all the answers

Which account balances are compared monthly with the main ledgers?

Traffic Account, Other Railways, and Deposit Private Companies Signup and view all the answers

What is the consequence of differences existing under Traffic Account?

They are due to cash in transit Signup and view all the answers

Which of the following is NOT included on the debit side of the Traffic Account journal entry?

Tickets and invoices from the balance sheet Signup and view all the answers

In the journal entry, the total debits are posted to which account?

Traffic Account Signup and view all the answers

How is the apportionment of earnings for traffic carried over more than one Railway performed?

Under the Centralized Apportionment system Signup and view all the answers

When is the Division sheet used for apportionment?

Only for Parcel earnings Signup and view all the answers

Which entity is primarily responsible for apportioning traffic for Deposit Private Companies and similar entities?

The Zonal Railway for that jurisdiction Signup and view all the answers

In cases where the Zonal Railway guidelines are unavailable, what are the alternatives for apportionment?

Utilize the Matrix available in CAS or guidance from CRIS in FOIS Signup and view all the answers

What determines the crediting of shares for passengers, luggage, and animals traffic?

The home railway's earnings are debited for other railway shares Signup and view all the answers

What is the net result of apportionment expected to reflect in the Traffic Book?

Debits or credits related to other railways and Deposit Private Companies Signup and view all the answers

Which of the following is NOT a source from which apportionment results are obtained for posting in Part B of the Traffic Book?

Fuel sale earnings Signup and view all the answers

Which principle guides the apportionment of interchanged traffic with Deposit Private Companies?

Principles defined in Chapter XXXI Signup and view all the answers

What are the two types of passenger types mentioned for the interchanged traffic?

Outwards and Inwards Signup and view all the answers

Which of the following types of traffic specifically requires posting to the credit of other railways and Deposit Private Companies?

Forwarded passengers and luggage Signup and view all the answers

What is the main purpose of the Traffic Book, Part C?

To track traffic earnings for the Home Line Signup and view all the answers

Which of the following accounts is NOT included in the Traffic Book, Part C?

Customer Feedback Account Signup and view all the answers

What should the totals of the figures for each railway be transcribed to?

Traffic Book, Part C Signup and view all the answers

What type of earnings does the Traffic Book, Part C track separately?

Coaching and Goods Traffic Signup and view all the answers

Which of the following is used for the apportionment of parcels that are paid?

Matrix prepared under CAS Signup and view all the answers

The Traffic Book should be maintained in what form?

Form A-3225 Signup and view all the answers

What does the term 'Goods Outwards/Inwards' refer to in the context of the traffic interchange?

The distinction between goods moving out and in Signup and view all the answers

Which type of traffic is NOT categorized within the Traffic Book, Part C?

Passenger traffic Signup and view all the answers

What is the primary basis for the apportionment of earnings for parcels and goods?

Prescribed percentages and data from external sources Signup and view all the answers

What is the primary purpose of the Traffic Account?

To record traffic earnings and track their realization. Signup and view all the answers

What does the balance of the Traffic Account represent?

Unrealized earnings. Signup and view all the answers

Which part of the Traffic Book is used to check the opening balances?

Part C Signup and view all the answers

How should traffic earnings be represented in the Traffic Account?

By crediting final heads of earnings. Signup and view all the answers

What figures should be transcribed from Part B to Part C in relation to through traffic earnings?

Apportioned earnings of traffic. Signup and view all the answers

What should be done with realized traffic earnings according to the process outlined?

They should be credited to the Traffic Account. Signup and view all the answers

From where should the debits and credits to the Traffic Account in the Balance Sheet be sourced?

From the Accounts Office Balance Sheet. Signup and view all the answers

What does the term 'Net Payable' refer to in the context of apportioned earnings?

Earnings owed to Foreign Railways by less credits to Home Railway. Signup and view all the answers

What should be done with the Traffic Earnings credited through Station Balance sheets?

Brought forward from the Traffic Book Part A. Signup and view all the answers

What is NOT a component of the Traffic Account credits?

Total unrealized earnings. Signup and view all the answers

What type of account is NOT included in the Traffic Book, Part C?

Expenses Account Signup and view all the answers

Which aspect is critical in determining the apportionment of parcels that are paid?

PMS as per prescribed matrix Signup and view all the answers

What is essential for the maintenance of the Traffic Book according to the content provided?

Separation for coaching and goods traffic Signup and view all the answers

What does the total of the figures posted against each railway primarily reflect?

The overall traffic earnings Signup and view all the answers

In the context of the Traffic Book, what signifies the apportionment result received from other railways?

Advices of result of apportionment Signup and view all the answers

What is indicated by the posting in Traffic Book Part A being made from systems generated Balance Sheets?

Electronic systems decrease the likelihood of errors. Signup and view all the answers

Why is it important to maintain the names of all stations in Traffic Book Part A in geographical order?

To enable geographical analysis of traffic patterns. Signup and view all the answers

What does the freezing of the Station Balance Sheet prevent?

Changes to previous data for the preceding month. Signup and view all the answers

Which of the following best describes the content of the Adjustment or Division Sheets in the Traffic Book?

They provide a detailed breakdown of traffic apportionment between different railways. Signup and view all the answers

What is implied by the division of the Traffic Book into distinct parts?

Distinct parts allow for specialized focus on different traffic types. Signup and view all the answers

How does the Traffic Accounts office contribute to the posting process in Traffic Book Part A?

It may make changes during the internal check to ensure accuracy. Signup and view all the answers

What is the main outcome expected once the Station Balance Sheets are frozen and processed for the Traffic Book?

Traffic earnings reflect the finalized monthly figures. Signup and view all the answers

Which railway is responsible for the adjustment of 'To Pay' Parcels traffic?

Receiving Railway Signup and view all the answers

Which type of traffic does NOT require adjustment in the earnings according to centralized apportionment?

Excess Fare traffic Signup and view all the answers

What is primarily used to adjust the earnings from parcels and postal haulage traffic?

Manual Division - Sheet Signup and view all the answers

In the case of interchanged goods traffic, who is responsible for the earnings adjustment?

Forwarding Railway Signup and view all the answers

Which of the following traffic types is excluded from adjustments in the earnings process?

Both B and C Signup and view all the answers

Which component of earnings adjustment is NOT typically associated with the interchanged traffic process?

Excess Fare adjustments Signup and view all the answers

What is the role of the Traffic Accounts office during the traffic earnings posting related to interchanged traffic?

Ensuring accurate transcriptions Signup and view all the answers

How are adjustments handled when centralized shares for traffic like parcels are unavailable?

Using a manual system Signup and view all the answers

Which railway share adjustment system is mentioned for handling traffic interchanged?

Centralized Apportionment System Signup and view all the answers

What type of earnings adjustment is NOT included as part of the manual division-sheet calculations?

Luggage adjustments Signup and view all the answers

How should discrepancies between station entries and audited figures of Warrants and Credit Notes be handled in the Traffic Book?

By adjusting the debit side on the basis of the difference Signup and view all the answers

Which is NOT a part of 'Book Transfers' in the Traffic Book?

Transfers from Accounts Office Balance Sheet to Station Balance Sheet Signup and view all the answers

What must be verified for the totals under the 'Balance Sheet Transfers' section?

That the figures balance with the Accounts Office Balance Sheet Signup and view all the answers

What should be done when errors are noticed during the verification of postings in Traffic Book, Part A?

Rectify the errors by adjusting the Traffic Book through the Adjustment Balance Sheet Signup and view all the answers

When dealing with transfers, what records amounts credited to expenditure heads of account?

Book Transfers Signup and view all the answers

Which of the following is a necessary action regarding the suspense head when verifying Balance Sheet Transfers?

It should be cleared for accurate reporting Signup and view all the answers

What constitutes an adjustment in the Traffic Book when discrepancies are found in the Station Balance Sheets?

Adjusting the figures in the Adjustment Balance Sheet Signup and view all the answers

What kinds of transfers are included in the 'Transfers' section of the Traffic Book?

Both Balance Sheet Transfers and Book Transfers Signup and view all the answers

What is a key requirement for the totals regarding 'Book Transfers'?

They should match the summary of Journal Entries Signup and view all the answers

What is the significance of maintaining additional analytical columns under each head in the Traffic Book?

To facilitate local reporting requirements and specifics. Signup and view all the answers

What entity primarily oversees the apportionment of traffic involving Deposit Private Companies?

Non-Governmental Railways. Signup and view all the answers

Which statement regarding the 'Goods Traffic Book for the month' is inaccurate?

It records only the earnings of the Home Railway. Signup and view all the answers

In the Traffic Book, which of the following is mandatory before posting the grand total on the debit side?

Verification that no discrepancies exist in the monthly accounts. Signup and view all the answers

What does the term 'Net Payable' indicate in the context of the Traffic Book?

Amount remaining after adjusting debits and credits. Signup and view all the answers

Which item is NOT typically recorded on the credit side of the Traffic Account journal entry?

Accrued interest from unpaid traffic balances. Signup and view all the answers

What role does the Division Sheet play in the apportionment process?

It delineates the specific shares between railways. Signup and view all the answers

Which of the following is essential for ensuring accurate traffic earnings representation in the Traffic Account?

Use of standardized reporting forms across all railways. Signup and view all the answers

Which procedure should be followed for realized traffic earnings according to the guidelines?

They are subject to further adjustments before recording. Signup and view all the answers

Study Notes

Traffic Book

The Traffic Book compiles and records all railway traffic earnings, including Coaching, Goods, and Sundry Other Earnings, both locally and through.
It documents earnings realization, apportionment of traffic interchanged with other railways, and settlements of balances.
The Traffic Book has four parts: Station Accounts, Adjustment/Division Sheets, Home Line Ledger Accounts, and Earnings Statement of Balances.
Traffic earnings are recorded under appropriate heads (Coaching, Goods, Sundry Other).
The realization of traffic earnings (cash, vouchers, transfers) is posted to the credit.
Unrealized earnings are recorded in a "Closing Balance" column.
All stations open for traffic should be listed, preferably geographically ordered.

Traffic Book Part A

Records earnings for which the home railway is responsible.
Maintains a form specific to Coaching and Goods Traffic.
Should list stations in a convenient geographical order.
It is generated from system-generated or manually prepared station balance sheets.
Station balance sheets are frozen for the month to avoid changes.
Opening balances from the previous month are compared with corresponding station balance sheet figures.
Postings are made from balance sheets prepared at stations/the Traffic Account office.

Traffic Book Part B

Deals with apportionment of through traffic between the home railway, other railways, and deposit private companies (including NGR, JV, SPVs).
Maintains a separate form for Coaching traffic..
This part details the division of earnings of coaching traffic interchanged with other railways and deposit private companies; this includes outward and inward passengers, parcels, and other carriage.

Traffic Book Part C

Is a ledger for the home railway's traffic earnings.
Maintains separate accounts for coaching and goods traffic, along with accounts for other railways and deposit private companies.
This part records the traffic earnings.
The total of the opening balance should be verified with that of the closing balance in the Traffic Book for the previous month.
Earnings for the month, whether local or through, are posted manually/systematically to the debit columns.

Traffic Book Part D

Contains a monthly journal entry and statements for coaching and goods traffic earnings.
Records the final totals for the month from Part C.
Used for incorporation in the general books.
Includes the Traffic Account, Other Railways Account, and Deposit Private Companies Account.

Apportionment of Earnings

Railways adjust earnings with other railways based on a centralized system (for passengers and goods).
For parcels, postal traffic, a detailed “Division Sheet” is used.
Excess fares, luggage, animals remain with the collecting railway.
Apportionment of earnings for traffic carried over more than one railway is handled by a centralized system, determining outward and inward share proportions for each railway.

Traffic Book Balances

Traffic Book balances for each railway are verified against main ledgers monthly.
Differences between balances should be investigated and rectified in subsequent months, particularly those not covered by cash-in-transit.
Cash in transit refers to station cash received after the third of the month, which is recorded in subsequent months.
A cash check should be performed that verifies figures under the "cash" column with Cash Registers/Traffic Cash Check Sheets.
The "vouchers" column should be analyzed under "Warrants" (Local and Through) and "Credit Notes" (Local, Through, and Military) and validated against the aggregate of the submitted warrants and credit notes.
Transfer postings relate to transfers between station and accounts office balance sheets in both directions (station to office, office to station).
Transfer transactions are recorded as "Balance Sheet Transfers" and "Book Transfers" in Part A
The totals under "Balance Sheet Transfers" should be checked against the Accounts Office Balance Sheet. "Book Transfers" totals should match Journal Entries Summary totals.
Traffic booking totals (e.g., "Local," "Through") should be posted manually/systematically to the debit columns of Part A.

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Description

This quiz explores the structure and content of the Traffic Book, focusing on its documentation of railway traffic earnings and the specific requirements of Parts A and B. Participants will learn about station accounts, the apportionment of traffic, and the importance of balance sheets. Gain an understanding of the various functions and parts of this essential railway document.