Traffic Account

The principle of Railway account is that all -Revenue earnings and expenditures should be accounted in the month to which those relate. for the purpose of accountal of traffic earnings in the related month and watching  the progress of their realisation , a separate separate suspense head is maintained called traffic account.

this account serves the same purpose for earnings as demands payable does for -Revenue exp3nditure . this is debtor for all earnings whether local or foreign for the realisation of which the home Railway is responsible and is creditor for all recoveries of such earnings. the balances therefore represent unrealised earnings at station balance sheets and in the accounts office balance sheets maintained by the accounts office.