1. STRUCTURE OF RAILWAY ACCOUNTS The objective is to keep the accounts on commercial as well as Government basis. Accrual basis. How capital has been utilised. Relationship with debtors as well as creditors. Profit or loss making concern. sources of profit or loss solvent or insolvent. Cash basis Systematic recording of records.

2. The Account of Railway presented as a commercial unit are called “Capital and Revenue Accounts” Accounts maintain with the requirement of government account are called “Finance Accounts”. The link between the two is established by operating the suspense Accounts also called Link Accounts.

3. Capital and Revenue Accounts. Maintained separately for capital and Revenue transactions. Capital expenditure is classified into capital, capital fund, DRF, DF & OLWR. Revenue Expenditure is classified in the various revenue demand.

4. Government Accounts. These are classified as prescribed by the government, they are called finance accounts and maintained in three parts. Consolidated fund of India. All receipt and expenditure ( Capital and Revenue) are accounted in this. This is governed by article 266 of Constitution Of India. –Revenue –Capital –Debt. Contingency fund of India. Article 267. Placed at the disposal of Finance Commissioner Public Accounts of India. –Debt –Deposit and Remittances

5. Link Accounts. Link accounts serve the purpose of establishing the accounts in the cash and accrual basis Demand payable. This head is created by debit to the final head of Account. The balance represents out standing liabilities not discharged. At the time of passing the bill. –Revenue DemandDr –Demands payable Cr. At the time of making payment. –Demands payableDr. –Cheques and BillsCr

6. Traffic Accounts. Debited for all earnings the realizations of which is the responsibility of home Railways and credited with all realizations. The balance represents unrealized earnings. Other Link Accounts are: –Labour –Demands Recoverable.

7. Finance Account. In accordance with the government accounting systems. Accounts of the various Railway heads together with detailed schedules. ( 9) –Appendices (2) Finance Accounts should be submitted after getting them audited by the audit officer.

8. Debt head Report. F. Loans & Advanced ( HBA, Motor Car, Festival advance etc.) I. Small saving ( Provident Fund). J. Reserve Fund ( ) K. Deposit and Advances ( Unclaimed PF, Deposit of branch line etc.) L. Suspense and Miscellaneous. M. Remittance

9. Remittance Transaction Transactions between Railway Ministry and other Ministries settled through the CAS of RBI are called “Remittance Transactions”. Transactions settled by issue of cheque are called “Pay and Accounts Transactions”. Inter, Intra Railway Transactions are called “ Transfer Transaction”.

10. Heads operated for Remittance Transactions Reserve Bank Suspense Remittance into Bank. Cheques and Bills. M Remittance. Deposits Reserve bank.

11. Reserve Bank Suspense. Records the inward transactions originating in the Books of other Accounting Units and adjustable in the Books of Railways. –On receipt of schedule service head Dr. RBS Cr. –Clearance Memo from RBI. RBSDr Deposit Reserve BankCr

12. Remittance into Bank. Operated when earnings are remitted into Banks. At the time of remittance. –RIBDr –Earning head (XYZ)Cr When acknowledgement is received from RBI –Deposits with Reserve BankDr –RIBCr The balance under this head represents amount deposited but not yet acknowledged.

13. Cheques and Bills When cheques are drawn –Service Head Dr –Cheques and BillsCr Receipt of Debit scroll from the banks –Cheques and BillsDr –Deposit with Reserve BankCr

14. M Remittance This is operated when transactions originate in the books of Railway to be adjusted in the books of other Ministries. Maintained to watch the recovery from the other ministries When advance schedule is sent –M RemittanceDr –Service Head Cr On receipt of clearance Memo from RBI –Deposit with Reserve bankDr –M Remittance Cr

15. Deposit with Reserve Bank For Remittance into Bank –As the Remittance notes are received Remittance into Bank Dr Revenue/Service HeadCr – At the end of month –Deposit with Reserve bank Dr –Remittance into BankCr

16. For cheques issue –At the time of issue in the cheque Revenue/Service HeadDr Cheques and BillsCr –On receipt of Debits scroll Cheques and BillsDr Deposit with the BankCr

17. Transfer Transaction Intra Heads Intra Railway Inter Railway Transfer certificate.

18. Suspense Heads Revenue –DP, DR,TA, MAR Capital –Stores, Purchase, Sales, MAC, WMS, Labor, etc. Debt. –Loans and Advances, Deposits, etc. Remittance. –RBS, RIB, C&B, M remittance, DRB, etc.