DIFFERENCES BETWEEN
Demands Recoverable (D.R) and Bills Recoverable (B.R)

1.      Introduced from 01.04.1988.	1. Existed since the beginning of Railway Accounts
2.      Purpose: to bring to account all dues pertaining to Rent/lease of Railway Land and Buildings and Interest and Maintenance Charges of Sidings.	2. Purpose: to bring into account all dues pertaining to Water, Electricity, Staff charges & AMC of LC gates
3.      When the amounts due for Railway has been raised in the form of Bills – Debited to Demands Recoverable and Credited to Abstract Z earnings.	3.When the amounts due for Railway has been passed for payment  - Debited to Concerned Revenue Demands and Credited to Cash A/c ( Cheques& Bills)
4.      On the receipt of remittance from the parties – Debited Cash A/c (RIB) and Credited to Demands Recoverable.	4. On receipt the remittance from the parties -Debited Cash A/c(RIB) and Minus Debited to concerned Revenue Demands. (exception : water charges. These will be credited to earnings)
5.      Closing Balance of D.R.: Represents unrealized amount in the form of outstanding “Demands Recoverable”.	5. No question of closing balance as there is no separate Bills Recoverable A/c
6.      Examples: A.Land rent charges for engineering and commercial plots. B. Interest, maintenance charges & Inspection charges for sidings. C. Rent of Buildings & D. Maintenance charges for ROBs, FOBs and level crossings.	6. Examples: A. Cost of commercial staff/other staff (engineering) deputed to sidings. & B. Maintenance/Wagon repair charges. Water bills D. Electricity bills
7.      These are form a part of Sundry earnings (Abstract Z	7.These are not part of Sundry earnings (Abstract Z).  Recovery from parties reduces the expenditure in Revenue Demands which are already accounted in Books. (exception : water charges. These will be credited to earnings)
8.      Clearance under the “Demands Recoverable” leads to reduction in Traffic Suspense.  Thus resulting in Better operating Efficiency.	8. Clearance under the “Bills Recoverable” leads to the reduction in Revenue Demands. Thus results in improving Operating Ratio.
9.      It is one of the “LINK HEADS” connecting Government Accounts with Commercial Accounts.	9. It is not a Link Head.

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