Post on 04-Mar-2016
description
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Compilation of State
Accounts by the
Accountant General
Reference : Account code
for AG’s - earlier known as
Account Code Volume IV
And MSO(A&! Vol I
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What is the end product
of the accounting ?State monthly accounts
Annual Finance Accounts Annual Appropriation
Accounts
These are submitted to the Govt. / Legislature
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Other Important outputs
Classified Abstracts
Consolidated Abstracts
Detail Books
Ledger
These are internal accounts kept by the AG
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Other Important outputs
Journal
Broadsheets
Annual Detailed
Appropriation Accounts
These are internal accounts kept by the AG
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Monthly
Accounts
Compilation
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The Accounts are segregated and
compiled in two parts which are laterbrought together The Revenue receipt and
expenditure and Capitalexpenditure Heads ( 0… to 5…Major Heads) referred to as serviceheadsDebt Deposit and Reittance heads
(!… to "###) referred to as DDRheads$
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SOURCES OF ACCOUNTS AND SECTIONS PROCESSING
DC
sections
Treasury
A/Cs
Treasuries
PW Divisions
Forest Divisions
Works A/c sections
Forest A/c sections
RBI
Oter AGs
PAOs
R!y" P#T"
De$ence
De%tt& O$$icers
o%eratin' trou'Banks
Account Current
Section
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Treasury
Accounts
SectionCould be called by different names indifferent offices like
Central Treasury Section or
Book ! section "#$%
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Treasury Accounts
Treasury Account
Recei%ts ca!!e( Cas Account
Pay)ents Ca!!e(*ist o$ Pay)ents+First an( Secon(,
Su%%orte( -y sce(u!eO$ recei%ts
Su%%orte(
By ca!!ans
Su%%orte( -y sce(u!eO$ %ay)ents
Su%%orte(
By voucers
Received by theTreasury
Accounts
section
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Treasury Account sections
Check L&$ and Cash AccountsFor Correctness of totals
'hether schedule of payments ( receiptstally with figures in L&$ and CA
'hether )oucher bundles ha)e been
furnished for all the entries in the L&$
Any errors at this stage get posted in*+,* - ./0 suspense"Ci)il%
Sub #ead - Treasury Suspense
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Treasury Accounts Sections
Cash Accounts and L&$ are figures ofonly DD1 heads posted up to subhead le)el2 All the ser)ice heads are
shown by T& as sub heads under theSuspense #ead
*+,* 3 ... 3 Departmental Ad4usting
Account Suspense
Commonly referred to as DAA
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Treasury Accounts Sections
This initial booking in suspense isdone because
The receipt and payment figures mayinclude items of reduction of e5penditureand refund of receipts ( reco)eriesrespecti)ely which are segregated andaccounted for by A62 Thus receipt (payment booked initially under suspensepending transfer to correct heads2
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Treasury Accounts Sections
The Treasury attaches a summary ofbalances with the L&$ and Cash account2 !t
shows the
&B and CB of Cash for non bankingtreasuries
&B and CB of 1eser)e Bank Deposits for
banking treasuriesFor banking treasuries ha)ing non banking
sub treasuries both Cash and 1BD figures
would be shown2
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Treasury Accounts Sections
"&B7Total Cash account-Total
L&$8CB%
The posting of the difference of L&$and Cash account in Cash( 1BD is the
second part of 9double entries: in
Treasury Accounts2Both Cash and 1BD are transferred to
*;;; - Cash Balance at the closing of
the monthly accounts
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Treasury Accounts sections
The treasury accounts section transfersthe figures of DD1 heads upto sub head
le)el from Cash Accounts and L&$ to aregister called Detail Book part !2
The schedules of payment and receiptsfor all Ser)ice <a4or #eads along with)ouchers and challans are transferred toDepartmental compilation "DC% sections2
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Treasury Accounts sections
The supporting documents such as)ouchers= challans etc2 for DD1 heads arealso sent to different sections for subsidiaryaccounting2
Loans= 1eser)e Funds= Deposits= Ad)ancesare sent to Loan and Deposit Sections2
6$F sent to 6$F sections2
!nter 6o)ernment items sent to AccountCurrent sections2
$' and Forest che>ues sent to 'orks A(c
and Forest A(c sections
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Treasury Accounts sections
All the DD1 heads "including Try2suspense% from all treasuries are
entered in DB ! and totalled sub head
wise to get the total figures for thewhole state2
These sub head wise DD1 figures for
the state for that month of account issent to the book section for
consolidation2
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Treasury
Accounting in
Departmental
Compilation
Sections
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D C Sections
DC sections are organisedSer)ice <a4or #ead wise i2e2each section compiles one ormore ma4or heads for alltreasuries2 This segregation hasalso been followed generally fordistribution of work after ?LC
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What the DC sections receie and
account for Source $ayments 1eceipts
TreasurySections
.2 ?ouchers "with or without1eco)eries%
02 1efunds of re)enue
@2 ?ouchers of another <a4or
#ead " By mistake%
.2 1eceipts on Ser)ice #ead
02 1eduction of 5penditure
@2 1eceipt of another #eadappearing by mistake
"rare%
&therSections
&f A6office
?ouchers of the <a4or #ead
with suspense slips from
.2 &ther DC sections
02 AC sections
Similar to $ayments
rrors .2 <issing ?ouchers
02 Totalling errors
@2 'rong Classification
*+,* ./0 &B Suspense
Similar to $ayments
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D C Sections
The accountant tallies the )ouchers
with the S&$2".2% Any missing
)ouchers are classified under &B
suspense2
The accountant segregates the)ouchers sub( detailed head wise
?ouchers ( Schedules entered in
compilation sheets
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.oucers it sa)e c!assi$ication o$ 0
Detai! 1ea( 2 P/ NP/CSS 2 ./CCo)%i!ation
Seet +3&4,
Gross entries SOE ise
De(uction Seet
.oucer ise (e(uctions +3&5,
Co)%i!ation Seet 'ives te SOE
ise a''re'ate 'ross a)ounts $or
a!! voucers un(er a (etai!e( ea(
3CS 0 3DS
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D C Sections ! compilation
Dr - *+,* ... Ser)ice <a4or #eadCr - Cash ( 1BD
Reeber Double %ntries&
%ffect of postin's b Treasur
accounts section
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D C Sections ! compilation
%ffect of postin's b DC
ection
for )ouchers without any reco)eriesDr Ser)ice <a4or #ead
"-% Dr *+,* ... Ser)ice <a4or #ead
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D C Sections ! compilation
%ffect of postin's b DC
ection
for )ouchers with reco)eriesDr Ser)ice <a4or #ead
Cr 1eco)ery #eads "-% Dr *+,* ... Ser)ice <a4or #ead "et
amount from the two entries abo)e%
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D C Sections ! compilation
?ouchers with errors are not taken tothe final head and are posted in
compilation sheets as &B suspense2
et effectDr *+,* ./0 &B suspense "6ross
amount of )oucher%
Cr 1eco)ery #eads"-% Dr *+,* ... <a4or #ead "et amount%
- for )ouchers with reco)eries
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D C Sections ! compilation
1efunds of 1e)enue These are not
entered in the compilation sheets2 They
are accounted for in the classifiedabstract
et effect"-% Cr 1e)enue #ead
"-% Dr *+,* ... Ser)ice <a4or #ead
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D C Sections ! compilation
?ouchers of other #eads Let uspresume a )oucher of 0/,+ has come
in the Bundle of )ouchers of 0/,, whichis being compiled2
The )oucher had been classified byT& ( TA section as*+,* ... DAA 0/,, Dr2
in treasury a(cs
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D C Sections ! Compilation
Section prepares a suspense slipclassifying the amount of the )oucher as
Dr *+,* ... DAA 0/,+
"et effect Dr *+,* ... DAA 0/,+ "-%Dr *+,* ... DAA 0/,,%
The )oucher is sent along with thesuspense slip to the DC section which
compiles <a4or #ead 0/,+
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D C Sections ! Compilation
'hen )ouchers are recei)ed withsuspense slips from other sections= theyare kept together to be posted in the
accounts like other regular treasury)ouchers2
The total of such incoming suspenseslips are also posted as a minus entry
against DAA suspense in the recei)ingsection to clear the suspense raised bythe sections which sent these slips2
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D C Sections ! Compilation A check is carried out at this stage (*$+) before posting figures in the classified abstract
.2 Total of compilation sheets "ser)ice head only %
02 "-% Total of deduction sheets@2 "7% Total under &B suspense "compilationsheets%2 "7%Total of suspense slips sent out,2 "7% 1efunds of 1e)enue not yet accounted for Should be e>ual to the L&$ figure for the <a4or#ead " 1efer to table in second slide of DC sections%
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DC Sections!Classified Abs
After this pro)ing= figures are posted detailhead wise to the classified abstract !tem .2 To $art
!tem 02 To part @ !tem @2 To part ,
!tem 2 " Already entered in CT ledger%
!tem ,2 To part . as "-% credit against theconcerned head
The L&$ figure "minus% outward suspense
slips is entered in part , as a minus entry
under DAA suspense (*$")
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DC Sections!Classified Abs
The schedules of receipts are scrutinisedfor correct form and classification and
posted in part . of the abstract2 The
responding minus entry is also madeunder DAA suspense in part 02 1eductions
of e5penditure are posted as "-% Dr in part
against appropriate heads (*$*0)
After completing the postings for the
payment side= amounts from part @ should
be transferred to part . and 0 (*$**)
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DC Sections!Classified Abs
(*$*,) Check the total of $art . and 0for a treasury should be e>ual to
"Total reco)eries from from payment
)ouchers - Total refunds of 1e)enue%This completes the posting of alltransactions in the classified abstract fora particular treasury
Similiarly= the figures from all othertreasuries are also posted in theClassified Abstract
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DC Sections!Classified Abs
After completing the posting of alltreasuries= Suspense slips recei)ed
from other sections are posted2 (*$*-) Additions or deductions from the Tledger of the section are posted2 (*$*-)
The $roof sheet for the receipt andpayment sides are prepared2
This completes postings in the Abstract
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DC Sections!Classified Abs
<anual
Classifications tothe lowest le)el
Try.
Try0
Try@
SSlip.
Ts
Computerised
Try. Try0 Try@Cl
as
si
fic
cat
ion
Format of Classified Abstract
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DC Sections!Classified Abs
The figures for e)ery head "lowest
le)el in the classification% in the
classified abstract are totalled forall treasuries= suspense slips and
Ts and this gi)es the e5penditure(
receipt on each head for the entire
state for that month2
D C S ti
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D C Sections !
Consolidated AbstractThe totalled figures for the state from
$art . 3 1e)enue receipt head and
$art 3 1e)enue ( Capital
5penditure head are transferred to
the consolidated abstract of the
DC section2 (*$*!)!n the consolidated abstract= figures
are summarised to Detail= sub= minor=
sub ma4or and finally ma4or head le)el2
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D C Sections !
Consolidated Abstract!t has columns for $rogressi)e 5penditure to end of pre)ious
month
5penditure in current month "transferredfrom classified abstract%$rogressi)e e5penditure to the end of the
current month2
The <a4or #ead figures of the ser)iceheads are transferred to Book Sectionfor inclusion in the Abstract of <a4orheads2
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D C Sections ! DD" #eads
The DD1 figures from part 0 "receipts% andpart , "payments% are transferred to Booksection for inclusion in the abstract of DD1
heads "Detail Book 0%2 The DD1 headsoperated are primarily DAA and &Bsuspense and 6$F= #BA etc2 heads forreco)eries from salaries2
DC sections maintain broadsheets of DAAsuspense and &B suspense to monitorclearance2
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Wor$s
Accounts.or/s ccount
ections
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Wor$s Accounts !
Coerage
Study the different important
portions of the monthlyaccounts
Study the accounting in A6office after receipt of theaccounts
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Wor$s Accounts
Different Departments such as
1oads and Bridges
#ousing!rrigation
$ublic #ealth ngineering
$ublic 'orks Department&perate through di)isions and keep
works accounts2
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Wor$s Accounts
#ierarchy in 'orks Departments Secretary of the Department
ngineer in Chief
Chief ngineers - Eone
Superintendent ngineers - Circle
5ecuti)e ngineer 3 Di)isions
Assistant ngineer ( Junior ngineer2
Sub Di)isions
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Wor$s Accounts
All $' Di)isions send thecompiled monthly accounts to
A6 for the e5penditure
incurred on works2
5penditure of regular
establishment in di)isions isincurred at treasuries like all
other departments2
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Wor$s Accounts
The salaries of the work
charged establishment ispaid in the di)isions through
che>ues and is included in
the di)isional accounts
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Wor$s Accounts
ach di)ision has sub ordinate subdi)isions
The Sub di)isions submit accounts tothe di)ision= which consolidates themwith its own accounts= computes <a4or#ead totals and prepares the Di)isionalmonthly accounts2
!t is a fully compiled account2 The A6 4ust consolidates the figures of alldi)isions of the state2
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Wor$s Accounts
The important items in the <onthlyDi)isional Accounts
Form */ <onthly account <a4or #eads
Form Classified Abstract of e5penditure Supported by )ouchers
segregated works wise2
Form + 1e)enues=1efunds andreco)eries on Capital Accounts
Form + 'orks Abstract 'orks wise
details
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W A ! Monthly A%c ! & '(
<a4or #ead Figures1eceipts e>ual to disbursementsas all payments are through che>ues
Dr $ayment #ead ( Cr **0 ./0 S# !! Che>ues All receipts are remitted to treasury
Cr receipt head ( Dr **0 ./0 S# ! 1em2 to Try2
&ther transfers and ad4ustment entries are alsomade affecting two heads they are only book
ad4ustments2
Cash transactions Cash held in *+. ./.
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W A ! Monthly A%c ! & '(
Cash
!mprestTemporary ad)ances
Gndisbursed cash
M thl A t
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Monthly Account &orm)'(
Division 06 Si)!a Divn& No7&8ont 0 Dece)-er 7999
ame of <a4or #eads Schedule 1eceipt Disbursement
R%1%23%
//,; 3$ublic 'orks Form + .@/.
/0.+ #ousing +;
/*,@- <ines H <inerals 0+;,
%4%2D6T3R% -./,;*
0/.. $arliament Form
0./ C&L <edical Bldg -./*;./
0/,; $' Bldg "$lan% +@+
0/,; $' Bldg " -$lan% .*+*+/
,/, C&L 1HB " $lan% -@.0*.;
0.+ 3C&L #ousing .,*,;
M thl A t
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Monthly Accountame of <a4or #eads Schedule 1eceipt Disbursement
00.+- #ousing "$) -@/+;
@/, 1HB "2$% ./,+@/@
7TH%R H%D +;
<isc #eads of Account Form + 0,*,; .,///
*@-Ci)il Deposits Form ; .;;;@ 0.,
*+,* Suspense Account CSSA - -
*+,* Suspense Account<$SSA -./*;./
**0 1emittances .;;;@ .;,.+@
Cash Balance **+
&pening Balance .;,
Closing Balance ./,;
**+
Total +*;*;+. +*;*;+.
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W A ! Classified*+,p- ! & ./
For e)ery Ser)ice <a4or #ead"5p% in the <onthly account= there
will be a classified abstract
showing e5penditure up to sub(detailed heads2
The figures are the combined
e5penditure figures of the di)ision
and its sub di)isions2
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W A ! Classified *"ct-! & /0
Classified of ser)ice #ead
receipts e5actly similar toForm +
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W A ! Wor$s Abs1 ! & 0/
Shows the current and progressi)e
e5penditure on the different works
undertaken by the di)ision throughits sub di)isions2 All the works
undertaken a particular sub(
detailed head are shown together 2
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WA ! DD" #eads
For the DD1 #eads= supporting forms areattached= showing <a4or #ead wise breakupand for each ma4or #ead= Di) ( Sub di)ision
wise breakup2!mportant #eads "+", Reittance "!5" C "!5" M "88- . deposits "!+* *0* Cash balance
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WA ! Sectional A%cing
The Di)isional Accounts are recei)ed in the
different 'orks A(c Sections
After receipt of accounts= the section Scrutinises the account and tallies different forms as
all the forms are linked to Form */
Classification checks are carried out on classified
abstracts After scrutiny= the accounts are transferred to
the '< section for posting2
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WM ! Section A%cing
'< 'orks <iscellaneous is thecontrolling section for works accounts2
&n receipt of )erified accounts fromdifferent 'A sections= figures aretransferred from form and +A toclassified abstracts2
The classified abstract of '< sectionare kept in the same form as DCsections
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WA ! Sectional A%cing
The figures of all other di)isions are posted inthe classified abstracts of respecti)e <a4or#eads2
Consolidated abstracts are prepared for
Ser)ice <a4or #eads2<a4or #ead figures for Ser)ice #eads anddetailed figures for DD1 heads are sent toBook Section2
Book :
SMH in Abstract of Major Head totalsDDR in Detail Book II
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Subsidiary Accounts
'orks Audit 1egister " Di)isionwise %5penditure details of all the works
undertaken by the di)ision2BS of **01emittances to TryChe>ues
BS of *+,* CSSABS of $A& suspense for ational
#ighways
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&orest
Accounts9orest ccountections
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&orest Accounts !
Coerage
Study the different important
portions of the monthlyaccounts
Study the accounting in A6office after receipt of theaccounts
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&orest Accounts
Structure
$CCF
CCF
DF&
1ange officers
& t A t
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&orest Accounts
All Forest Di)isions send thecompiled monthly accounts to
A6 for the e5penditure
incurred on works2 !n moststates= salaries are also paid
through che>ues and includedin di)isional accounts2
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&orest Accounts
ach di)ision has sub ordinate rangeoffices
The range offices submit accounts tothe di)ision= which consolidates themwith its own accounts= computes <a4or#ead totals and prepares the Di)isionalmonthly accounts2
!t is a fully compiled account2 The A6 4ust consolidates the figures of alldi)isions of the state2
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&orest Accounts
The important items in the <onthlyDi)isional Accounts
Form + Cash account
Form . Classified Abstract
1e)enue ( 5penditure Supported by
)ouchers2
Form .@ DisburserIs Ledger
Amounts ad)anced to range officers
and their ad4ustment
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& A ! Cash A%c ! &orm 0
The cash account of a forest di)ision is 4ustlike the summarised e5tract of a cash book
but there is no &B and CB2
<a4or #ead figures are shown for Ser)ice#eads and sub( detailed figures are shown for
DD1 heads in the Cash Account
6$F= #BA= !ncome Ta5 and other reco)eries
from salaries are also shown in the Cash
account as the salaries are also paid by
che>ues and accounted for in the account
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& A ! Cash A%c ! & 0
1eceipts e>ual to disbursementsas all payments are through che>ues
Dr $ayment #ead ( Cr **0 ./@ S# !!
Che>ues All receipts are remitted to treasury
Cr receipt head ( Dr **0 ./@ S# ! 1em2to Try2
&ther transfers and ad4ustment entriesare also made affecting two heads theyare only book ad4ustments2
2o cash transactions
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& A ! Classified Abs ! & 2/
For the Ser)ice <a4or #eads "5p2and 1e)enue% in the <onthly
account= there will be classified
abstracts showing e5penditure upto sub( detailed heads2
The figures are the combined
e5penditure figures of the di)ision
and its range offices
24
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& A ! Disburser 3edger ! & 24
6i)es a detailed account of total receipts anddisbursements under *,,/ 3 ./. Forest
Ad)ances appearing in the Cash Account2
Ad)ances are gi)en to 1ange officers to incur
e5penditure2Dr *,,/ ./. ( Cr **0 ./@ !! che>ues
After incurring e5penditure from this ad)ance=
the 1ange officer will submit an ad4ustment
account which clears the ad)anceDr Ser)ice #eads ( Cr *,,/ ./.
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&A ! DD" #eads
DD1 #eads are shown in the cash account
and supporting schedules and statements are
attached2
!mportant #eads **0 1emittance
*+,* ..0 TDS suspense
*//; 6$F */.. !nsurance
+./ #BA= <CA etc2
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&A ! Sectional A%cing
The Di)isional Accounts are recei)ed in theForest A(c Sections
After receipt of accounts= figures aretransferred from form . to classified abstracts2
The classified and all )ouchers and supportingdocuments are scrutinised by the Section&fficer to ensure the classifications of 1eceiptand $ayment are correct2
The classified abstract of Forest sections arekept in the same form as DC sections
&A S ti l A% i
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&A ! Sectional A%cing
The figures of all other di)isions are postedin the classified abstracts2
Consolidated abstracts are prepared forSer)ice <a4or #eads2
<a4or #ead figures for Ser)ice #eads anddetailed figures for DD1 heads are sent toBook Section2
Book : SMH in Abstract of Major Head totalsDDR in Detail Book II
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Subsidiary Accounts
BS of **01emittances to Try
Che>ues
BS of *,,/ Forest Ad)ances
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Departmental Accounts
1ecei)ed from (-$*) Departmental commercial undertakings
$A& s of State 6o)ernments
functioning in State Capitals "oTreasury%
$A&s of the State 6o)t2 in another
State like #imachal Bha)an in Delhi2 Accounts " Classified Abstracts%
prepared in concerned DC sections
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Departmental Accounts
They render monthly compiled accounts
showing detailed e5penditure and a list
showing particulars of che>ues drawn tomeet these e5penditures2(-$,)
Classified and consolidated abstracts
are prepared from the compiledaccounts in the same manner as if they
were treasury accounts2
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Departmental Accounts
The Concerned Deptl2 undertakings are placedin funds directly with Banks and can draw
money through che>ues for payment2 The
$A&s also issue che>ues on behalf of all theoffices under its control (-$,)$
All payments would be Debited to concerned
e5penditure heads with contra credit to *+/./0 $A& che>ues or ./@ Departmental
che>ues2
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Departmental Accounts
$aid che>ues of Departmentalundertakings are recei)ed by A6
through treasury Accounts
"appearing in L&$%Try accounts show D1 *+/ ./0 (
./@2 This clears the earlier credits2
$aid che>ues of the $A&s arerecei)ed by A6 through the compiled
accounts of the $A&s
D t t l A t
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Departmental Accounts
For the $A&s= the amounts drawn arereported by the designated bank to 1B!2
The 1B! debits the balance of the 6o)t2
and sends clearance memo to A62
The compiled accounts show drawal of
che>ues as credits under *+/ ./0 $A&
#imachal Bha)an etc2
&n receipt of clearance memo= the AC
section passes T Dr *+/ ./0 and
Cr *+, 1BD
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Account
Current
Sections
AC S ti
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AC Sections
!t prepares account of all !nter6o)ernment transactions
There are two methods of !6 settlement1B! ad)ice
Cash settlement (5$*)
Account of transactions of another6o)ernment occurring in a state areclassified as &utward Accounts and anaccount is sent by the A6 to the other6o)ernment
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AC Sections
Accounts of transactions of a state
occurring in the books of another 6o)t2
are inward accounts and an account isrecei)ed by the A6 from the other 6o)t2
Different Suspense heads are used to
account for the different ad4ustmentswith other 6o)ernments2
AC S ti
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AC Sections
1B! Ad)ice e5amples (5$,)!nter state
Loans from Central 6o)t2 and
repayments of principal and interestState share of Central ta5es( duties
6rants in aid from Central 6o)t2
1emittances of 1B! to on BankingTreasuries
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AC Sections
The CAS 1B! incorporates ad)ices
recei)ed by it up to the th of the
following month for the purpose ofpreparing monthly account and
computing closing monthly
balance (5$8)
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AC Sections
%xcept <arch transactionswhich are incorporated up to
0,th
April to include all ad)icesfor the Financial ear2 !nterState ad4ustments recei)ed late
from treasuries etc2 aread4usted through ad)ices in thene5t year 2 (5$5)
AC S ti
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AC Sections
&utward AccountsThe transactions of other states arising
in different treasuries= di)isions etc2 areconsolidated in DB!! "Showing state wisebreakup % and passed on to AC section2!t prepares accounts for the differentstates and sends them to the respecti)e
A6 s enclosing )ouchers "$ension)ouchers not enclosed% andsimultaneously sends ad)ices to 1B! forbalance ad4ustments2 (5$*,)
AC S ti
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AC Sections
!nward Accounts (5$*-)These are recei)ed from other A6 s2 They are
usually preceded by the C< from 1B! and onreceipt of these accounts= the AC section
clears CA&1B! suspense and sends theaccount and )ouchers of ser)ice heads toconcerned DC sections through DAAA=operates any DD1 heads itself and sends docs
for subsidiary accounting whene)er necessary2?ouchers for which proper classification has
not been entered or cannot be posted due tosome reasons are kept as *+,* ./0
Gnclassified suspense
AC Sections
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AC Sections
Cash Settlement 5amples (5$*!) All transactions ad4ustable with central
$A&s including 1ailway Defence and $HT
5penditure on ational #ighways
1ailway warrants
!ncome ta5 deducted at source
1eco)eries to 6$F= #BA fro Central 6o)t2
offficers on deputation to state go)t2
All Central $ensions Ci)il= 1ailways=
Defence etc2 paid from state treasuries
AC S ti
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AC Sections
Central Ci)il $ensions 'ere earlier ad4usted through **+
-ad4usting account between Central andState 6o)ernments by 1B! ad)iceprocedure2
From .2./2.;;/ Central Ci)il $ensions=Freedom fighterIs pensions are to be
debited under *+,* 3 ./. $A& sub headCentral $ension Accounting office ewDelhi and cash settlement is to be done
AC Sections
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AC Sections
5$*+ 7ut:ard accounts to 7s All the central transactions occurring in treasuries=
di)isions= etc2 are booked by them in different
suspense heads2These are consolidated $A& wisein the AC section2
!f there is a net debit= A6 raises a claim
!f there is net credit= A6 procures a draft through
Treasury( Bank2
Account with )ouchers etc2 and claim ( draft is sent
to $A&2
AC Sections
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AC Sections
For claims= $A& sends draft which is deposited inBank( Treasury
The procurement of draft by A6 ( ncashment of
draft deposited by A6 is reflected in Treasury
accounts through bank scroll and clears the
suspense heads operated initially2
5$*"
A6 maintains broadsheets for differentsuspense heads like $A& suspense=
Suspense Ci)il=TDS suspense2
AC Sections
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AC Sections
5$*# 6n:ard accounts received fro 7sTransactions of state originate in $A&
$A& sends account with )ouchers etc2 and
draft for net receipt 7R raise a claim for netpayment2
Final heads are operated in A6 with contradeduct entry in *+,* ./; 1B Suspense "#Krs%and AC section deposits ( purchases draft
Deposit ( $urchase of draft is reflected intreasury account through bank scrolls and
clears the suspense head *+,* ./;2
AC Sections
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AC SectionsState A6 normally not authorised to gi)e ad)ice
for reduction of Central Cash balance e5ceptwithdrawal of o)er payments made whilerepaying loans( interest through earlier ad)ice
(5$,,)$!ncome ta5 reco)ered from salaries of stateemployees are classified under *+,* ..0 TDSsuspense and draft for total collection is
procured by A6 and sent to the EA&= CBDT2(5$,5)
Typical entries shown in anne5ure to chapter,2
"$g ;;%
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5oo$
Section
Consolidation of Monthly
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Consolidation of Monthly
Account$ara 8$8 $reparation of Disburser Account
$aras !$, to !$! Detail Books
$ostings in DB ! from Try a(cs
Transfer of totals of DB! to DB!!
Collection of DD1 figures from all other
sections ( sources of accounts into DB!!
Figures from DD1 abstracts of DC sections
will clear DAAA suspense
Consolidation of
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Consolidation of
Monthly Account$reparation of consolidated Abstract of
DD1 #eads( !$+)
There could be minus figures in DD1heads2 ( !$" )
Abstract of <a4or #ead totals prepared
by taking ma4or head figures from theconsolidated abstracts2 (!$*0)
Consolidation of
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Consolidation of
Monthly AccountClosing cash balance details to be prepared
gi)ing breakup of &B and CB into three
componentsCash in treasuries
1emittances in transit
1eser)e Bank DepositsThe 1BD closing balance is to be reconciled
with the Cash balance con)eyed monthly by
1B!2 (!$*0)
Consolidation of
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Consolidation of
Monthly Account Accounts of each month should becompleted on or before the th of the secondfollowing month ".,th <ay in case ofaccounts for <arch%2 "+2..%
$reliminary Accounts are compiled for <archas the books remain open for ad4ustments2
By @/th June= after incorporating allad4ustments= the <arch supplementaryaccounts are completed2 "+2.0 %
Consolidation of
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Consolidation of
Monthly AccountThe central transactions appearing in the books
of the state A6s should be furnished to the C6A=
in the form of a statement called the Statement
of Central transactions by ma4or=sub-ma4or andminor heads of account in the form and date
prescribed by the C6A2 "+2.@%
(by the last day of the following month 9.(b!!
"nly nil accounts are sent now as central
transactions are not accounted for by A#s
0126 "ectification of
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errors
o alteration should be made in the DB=
classified abstract or consolidated abstractof any month after they ha)e been closed2Corrections should be made only by aformal transfer entry "T%2
!f the amount 8 1s2 ./ and of same 6o)t2only a note of error2
Corrections between sub(detailed heads
under the same minor head should not bemade by T= such corrections being madeby plus and minus entries against the head
affected
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Transfer +ntries
one head of account to another" 2.% (up to inor heads; !$*5)
to correct an error of classification
After reconciliation by departmentsto ad4ust= by debit or credit to its
proper head= an item outstanding
under a DD1 headClearance of suspense by debit ( credit
to ser)ice head
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Transfer +ntries
in order to ad4ust inter-departmental andother transactions which do not in)ol)ereceipt or payment of cashT on Annual interest payment on 6$F
accountswhen it is found more con)enient to
classify items pertaining to more than onehead of account under a single headinitially and then to take them to the properhead of account2!T and surcharge
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Transfer +ntries
&n one side of T only one ma4or
head2 &ther side may ha)e more than
one ma4or head2 All particularse5plaining the nature of the ad4ustment
and the reasons for correction must be
clearly stated2 "20%
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Transfer +ntries
A list of ad4ustments which ha)e to bemade periodically should be maintainedin order to ensure that they are regularlymade2 These ad4ustments should be
made monthly= howe)er if foundcon)enient they may be made >uarterly2"2@%
Annual and half-yearly Ts should as arule be a)oided= unless authoriMed byCA6 or 6o)t in consultation with A62"2%
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Transfer +ntries !
.16*a-
1e) ( 5p of one service head
wrongly classified in another Before closing of accounts T to rectify
error
After closing of accounts &nly note of
error against the original entry
!f affecting another 6o)t2 or a commercial
department= always rectified by T e)en if
accounts are closed2
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Transfer +ntries !
.16*b-
rrors affecting DD1 heads must be
rectified regardless of amount2 !f
accounts are open they can be rectifiedby transfer to the proper heads2
#owe)er when accounts ha)e already
been closed= then the treatment wouldbe different in different cases= as
described in the ne5t slide2
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Transfer +ntries !
.16*b-2ature of error djustent to beade
&ne DD1 head insteadof another T from one to theother
Cr to DD1 head insteadof 1e) #ead 7R
Dr to DD1 head insteadof 5p2 #ead
Transferred to original1e) ( 5p head
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Transfer +ntries !
.16*b-2ature of error djustent to be ade
Cr to 1e) #ead
instead of to DD1#ead
Dr refunds "minor head
;// - refer 020 of list ofma4or and minor heads%and Cr DD1 head
Dr to 5p #eadinstead of to DD1#ead
Cr rele)ant receipt headand Dr DD1 head
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Transfer +ntries !
.16*b-
After accounts are closed=corrections affecting Capital <a4or
#eads of same 6o)t2= shouldusually be effected by alteration ofprogressi)e figures instead ofaffecting the transactions of thecurrent year2ote below 2,"b%
7roforma Accounts
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7roforma Accounts
*"ule 2'- GA"The operations of some departments includeundertakings of a commercial or >uasi-commercial nature "an industry factory or a
store%2 Their financial results need to bee5pressed in commercial form so that cost ofser)ice may be accurately known2 This impliesthe maintenance of manufacturing= trading and$HL account2 As this cannot be kept in the6o)ernment system of accounts= they will bekept on a proforma basis outside 6o)ernment
Accounts2
7roforma Accounts
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7roforma Accounts
*contd- *"ule 2'- GA"These undertakings ( offices ha)e cash
transactions through treasuries ( $A&s like all
other go)t2 offices and their cash transactions
are included in 6o)t2 accounts
The proforma accounts are additional
accounts maintained by the Departmental
authorities themsel)es2
8ournal and 3edger
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8ournal and 3edger
*"ule 29- GA"Journal and Ledger are technical accounts
prepared to bring out in a scientific method
the balances of accounts in regard to which
6o)ernment acts as a banker= remitter=borrower or lender2 Although the balances
can be worked out in the regular accounts=
there accuracy can be assured by the
preparation of 4ournal and ledger2
%xa ns:er fro <R
8ournal and 3edger
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8ournal and 3edger State A6s should maintain separateJournals and Ledgers for State andCentral transactions2 "*2.%
Journal 3 "*20%
opening entries "closing balances of thepreceding yearIs accounts%
monthly entriesclosing entries of the year2
For rectification of errors after closing of Accounts 3 monthly and annual - beforepreparing Finance accounts
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8ournal and 3edger
Ledger maintained in two different forms "*2@% "a% accounts which close to balance "b% accounts closing to 6o)t2
"a% Detailed monthly posting fromConsolidated Abstract of DD1 heads2
"b% 6ross posting from the Abstract of <a4or
head totals for transactions under re)enue=ser)ice and capital heads2
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8ournal and 3edger
The ob4ect of Ledger is to be bring out thedetailed balances under the heads other thanthose which are closed to 6o)t2 The headsclosing to 6o)ernment are also includedwithout details= to ensure the balancing ofreceipts and payments2
$ara *2.. 6i)es DD1 heads closing to 6o)t2
Account *./N ;;;N *+*/The balance under *+, is transferred to*;;; Cash balance and *+, is always made nil2
$onthly accounts of the
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Central and %tate #ovts
&ach %tate A# should submit a monthlyaccount to the %tate #ovt. A note e'laining thedifference between the cash balance as er
accounts and as er the Bank should also formart of the monthly accounts. (9. a!
An account of all central transactions andtransactions of )T brought to account by the
%tate A#* should be submitted by him to theC#A by the last day of the following month.(9. b!
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&inal
AccountsFinance and Appropriation Accounts
Detailed Appropriation
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Detailed Appropriation
Accounts ) AG%xpenditures out of the consolidatedfund O Ser)ice #eads 7 Loan #eads"of
DD1%P are made as per grants andappropriations spelt out in the demandsfor grants in the Budget
For each demand for grant (
appropriation= detailed budgetaryallocation is made up to the sub (detailed ( S& le)el2
Detailed Appropriation
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pp p
Accounts
Allocations can be made in three stages in
any(all of the grants(appropriations
&riginalSupplementary
1eappropriations ( Surrenders
The original demand is part of the budgetdocument2 Supplementary figures are
con)eyed to the A6 around &ctober-
o)ember2
Detailed Appropriation
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Detailed Appropriation
AccountsThe reappropriations ( surrenders take
place at the close of the financial year
and is recei)ed by the A6 around thetime the accounts are being finalised2
&n aggregating these three stages of
allocation= the total budgeted amountagainst e)ery sub ( detailed( S& is
known2 6rant wise Statements of final
allocation are prepared by A62
Detailed Appropriation
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Detailed Appropriation
AccountsThe monthly consolidated abstracts
prepared by A6 ha)e progressi)e
receipts and e5penditures up to S& (detailed ( sub head le)els2
The following Abstracts are a)ailable
&ne for each Ser)ice <a4or #ead A combined DD1 abstract for all DD1
heads
Detailed Appropriation
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Detailed Appropriation
AccountsThus the consolidated abstractsprepared after closing <arch "S%
Accounts ha)e the annual figures for allsub( detailed ( S& heads inclusi)e ofthe e5penditure figures for all the headsin the different grants ( appropriations2
5penditure figures are transferred fromthese consolidated abstracts to the
grant wise statements
Detailed Appropriation
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Detailed Appropriation
AccountsThus budgeted amounts and actual
e5penditures are brought together and
e5cesses ( sa)ings on budgetpro)isions is computed for e)ery head2
This statement is generally prepared by
summarising allocations ande5penditures up to sub head le)el2
Detailed Appropriation
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Detailed Appropriation
AccountsThe completed grant wise statements are
then sent to the controlling officers for
each grant2 They are e5pected to tally thee5penditures with their departmental
accounts and reconcile any differences
with A62
This is the last chance of reconciling2 The
Departments are supposed to reconcile
figures with A6 e)ery >uarter2
Detailed Appropriation
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Detailed Appropriation
AccountsSome figures are re>uired to bechanged conse>uent to reconciliation atthis stage2
After incorporating these changes= thefinalised grant statements taken
together form the nnual Detailed
ppropriation ccounts$ The Finance and Appropriationaccounts can be prepared only after
this is finalised
Detailed Appropriation
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eta ed pp op at o
Accountsach grant statement of the
detailed appropriation accounts and
the Appropriation accounts canha)e four segments?oted 1e)enue
?oted Capital
Charged 1e)enue
Charged Capital
Se:uence of coerage
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Se:uence of coerage
Detailed appropriation accounts preparatio
n by A6
$reparation of Appropriation accounts by A6
#eadwise
appropriation accounts Central 6o)t2
$rocedure for Central Appropriation accounts
Structure of the Central Appropriation accounts
A i ti A t AG
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Appropriation Accounts ) AG
For e)ery grant in the detailedappropriation accounts= audit
comments are framed on thee5cesses= sa)ings= e5cessi)esurrenders ( reappropriations= tobring out the manner in which thebudget was administered by thecontrolling officer2
A i ti A t
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Appropriation Accounts
Separate <onetary limits are fi5edfor comments on sa)ings and
e5cesses#$
The Appropriation accounts is
primarily an aggregation of all thegrants statements with comments2
Appropriation Accounts
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Appropriation Accounts
Appropriation Accounts means theaccounts which indicate the
e5penditure "both )oted and
charged% of the 6o)ernment foreach financial year compared with
the amounts of )oted grants and
charged appropriations2
"$ara ..2. of CA<%
#ead;ise < Central Go1
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#ead;ise Central Go1
The $rincipal A& of each <inistry prepareshead-wise Appropriation Accounts
"$ara ..2@2. of CA<%
Secretary as the Chief Accounting Authority is
responsible for finally appro)ing and signing
the #ead-wise Appropriation Accounts of
grants administered by his <inistry2
"$ara ..202. of CA<%
#ead;ise Central Go
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#ead;ise < Central Go1
The #ead-wise Appropriation
Accounts will be got appro)ed by
the FA on the file and the Accountswill be sent for audit scrutiny duly
signed by the $rincipal Accounts
&fficer2"$ara ..2@2. of CA<%
#ead;ise < Central Go1
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The Accredited Audit &fficer for )ariousagencies is as follows<inistry of Defence 3 Director 6eneral of Audit= Defence Ser)icesDepartments of Atomic nergy= lectronics
and Space 3 $rincipal Director of Audit=Scientific Departments
Andaman H icobar !slands Administration-$D of Audit "Central%= Calcultta All &thers 3 D6C1= Delhi2
"$ara .. @ . of CA<%
Appropriation Accounts
C t l G t
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Central Got1The audited #ead-wise Appropriation Accounts of )arious grants will be
condensed by the C6A in the format of the
Appropriation accounts and furnished intriplicate to Audit for clearance2
&n receipt of clearance(further comments
from the D6C1= the condensed accountswill be finaliMed under the signatures of the
C6A2
"$ara .. . of CA<%
Appropriation Accounts
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pp p
Central Got1
The printed copies of the Appropriation
Accounts will then be sent to the D6C1
for obtaining the signature of the CA6on the audit certificate before their
submission by the latter to the
$resident2
"$ara ..22. of CA<%
Structure of App Acc
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Structure of App1 Acc1
Appropriation Account "Ci)il% co)ers
all grants e5cept grants for $ostal H
Telecommunication Ser)ices2For $HT separate )olume of
Appropriation Accounts are
Compiled2
Contents
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Contents
Summary of Appropriation Accounts
5cess e5penditure o)er 6rants(
AppropriationsStatement of 6ross e5penditure and
reco)eries as per Appropriation
Accounts and et e5penditure whichappears in Finance Accounts
Contents *contd11-
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* -
6rant-wise details with comments (clarifications2
Anne5ure 9A: Statement of
1eco)eries Anne5ure 9B: Statement of !temsheld under ob4ection2
Anne5ure 9C: 5tract of Capital andLoan !n)estments in $SGs )oted bythe $arliament in different grants andactual e5penditures2
Summary Appropriation
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y
Accounts
Tabulation of all grants showing total
budget= actuals and e5cess ( sa)ing2
ach of these three figures issegregated by re)enue and capital
portions2
re)enue and capital portions are
further sub di)ided into ?oted and
Charged amounts
Grant);ise details
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6i)es the total grant "re)enue( Capital and)oted(charged% broken into original=
Supplementary and re-appropriations2
Against each group= actual e5penditure=
e5cess(sa)ings and amount surrendered is
gi)en2
otes and comments are gi)en <a4or head-
wise gi)ing reasons for e5cess(sa)ings etc2
and referring to minor( sub heads where the
primary e5cesses ( sa)ings had occurred2
Anne,ures
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Anne5ure 9A:6rant wise details of actual reco)eries
Anne5ure 9B: !tems of e5penditure not sanctioned by
competent authority and held under ob4ection
Anne5ure 9C: !n)estments in $SGs arranged <inistry wise2
Amounts segregated into Capital and Loan
portions2 6rant through which in)estment was
)oted is also indicated2
&inance Accounts
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&inance Accounts
Finance Accounts of the Central
6o)ernment comprises the accounts of
the Central 6o)ernments as a wholeincluding transactions of Ci)il
<inistries= Defence Ser)ices= $osts and
Telegraph Departments and 1ailways2
"$ara .@2.2. of CA<%
&inance Accounts
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&inance Accounts
!t presents the accounts of receipts andoutgoings of the Central 6o)ernment forthe year together with the financial results
disclosed by different accounts and otherdata coming under e5amination= namelyre)enue and capital account= public debtand other liabilities and other assets asworked out from the accounts2
"$ara .@2.2. of CA<%%
&inance Accounts
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&inance Accounts
Finance Accounts is di)ided into 0
parts
$art ! Summarised statements1e)enue
Capital
DD1 and Contingency Fund
"$ara .@2.20 of CA<%
&inance Accounts
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&inance Accounts
$art !! Detailed Statements
Section A
1eceipts and e5penditure on re)enue andcapital accounts
Section BDD1Contingency Fund
"$ara .@2.20 of CA<%
Statement 2! Summary
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of Transactions1e)enue receipts= re)enue e5penditure andreceipts and e5penditure on $ublic debt by ma4orheads
Totals of capital receipts and capital e5penditure1eceipts and $ayment details relating to Loansand Ad)ances= !nter State Settlement=Contingency Fund= Small Sa)ings= $F= 1eser)e
Funds= Deposits and Ad)ances= Suspense and<iscellaneous and 1emittances
Statement 2! Summary
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of Transactions
5planatory notes contains details of all
ma4or heads= where there is a
significant difference compared to the
earlier year
Also contains summary of transactions
of 1ailways and Telecommunications
Statement =! Summary
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of Debt 7osition
#as @ parts$art . QStatement of BorrowingsI on
internal and e5ternal debt
$art 0 Q&ther &bligationsI such as reser)e
funds and deposits
$art@ QSer)ice of debtI containing an
analysis of interest receipts and paymentsand debt ser)icing ratio2
Statement 4! 3oans and
Ad b th > i
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Adances by the >nion
GoernmentSummary of loans and ad)ances made
to the State 6o)ernments= Gnion
Territories= Foreign 6o)ernments= on-
6o)ernment &rganisations and
6o)ernment ser)ants2
Also contains details of loans and
ad)ances on which repayment of
principal and interest are in arrears2
Statement /!
Guarantees gien by
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Guarantees gien by
>nion GoernmentDetails of guarantees gi)en for1epayment of principal and interest=
working capital= cash credit in respect of
companies= co-operati)es1epayment of share capital and minimum
di)idend by statutory corporations andfinancial institutions
Agreements entered by 6&! withinternational agencies
Statement /!
Guarantees gien by
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Guarantees gien by
>nion GoernmentDetails of guarantees gi)en for Counter-guarantees to Banks
6uarantees to 1ailways(lectricity Boards for
prompt payment of dues(freight charges $erformance guarantees gi)en for fulfillment of
contracts awarded to !ndian companies in foreign
countries and
$erformance guarantees gi)en for fulfillment ofcontracts awarded to foreign companies in foreign
countries
Statement 6! Summary
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of 5alances
Akin to Balance Sheet
Shows debit and credit balances up tosub-sectors of all heads closing tobalance
Also contains 96o)ernment Account:showing cumulati)e deficit(surplus of
the past taken together of all headsclosing to 6o)ernment Account2
Statement 0! Statement sho;ing
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percentage distribution of
reenue receipts and e,penditure
1eceipts in )arious areas as a R of
total re)enue receipts
1e)enue e5penditure in )arious
areas as a R of total re)enue
e5penditure
Statement .! Statement
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sho;ing distribution bet;een
harged and ?oted +,penditure
Break-up of total e5penditure under
)arious sectors as )oted and charged
e5penditure2
Statement '! Detailed
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Accounts of "eenue "eceipts
and apital "eceipts by Minor
#eads
Contains details of receipts by minor
heads for ma4or heads starting from
Q//0/-Corporation Ta5I to Q///-<iscellaneous Capital 1eceiptsI
Statement 9! Detailed Accounts of
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"eenue +,penditure by Minor
#eads and apital +,penditure by
Ma@or #eads
1e)enue e5penditure by minor heads
for heads from Q0/..I to Q@+/+ICapital e5penditure by ma4or heads for
heads Q/+I to Q,,I
Statement contains break-up of planand non-plan e5penditure2
Statement 2(! Statement of
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+,penditure on apital Account
during and to the end of the year
Capital e5penditure by minor heads for
heads Q/+I to Q,,IStatement contains e5penditure
incurred during the year and the
progressi)e e5penditure to the end ofthe year2
Statement 22! Statement sho;ing
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the Inestments of the >nion
Goernment
Contains 0 parts
$art ! relates to in)estments in
enterprises under construction and $art
!! relates to enterprises in operation2
Statement 22! Statement sho;ing
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the Inestments of the >nion
Goernment
$art !! is further sub-di)ided asStatutory Corporations
Joint Stock Companies6o)ernment Companies
&ther Joint Stock Companies
!nternational BodiesState Co-operati)e Banks and other Banks
Co-operati)e Societies
Statement 2=! Statement
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sho;ing apital e,penditure
and the sources from ;hich
funds ;ere proided
Similar to Funds Flow Statement
Shows sources from which capitale5penditure and e5penditure on loans
and ad)ances is met2
Statement 24! Statement
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relating to Debt Deposits
"emittances and ontingency
&und
First part contains summary of opening
balance= receipts= disbursements andclosing balance for Consolidated Fund by
sector= Contingency Fund and 9!2 Small
Sa)ings= $ro)ident Funds etc2=:
Statement 24! Statement
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relating to Debt Deposits
"emittances and ontingency
&und
Second part contains opening balance=
receipts= disbursements and closingbalance for heads 9*..,-Depreciation
1eser)e 1enewal Fund: to Q*;;;- Cash
BalanceI by minor heads2
Statement 2/! Statement of
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Debt and other Interest 5earing
Obligations of Goernment
laboration of Statement 0
Contains details of opening balance=additions= debts discharged= closing
balance and interest paid for the heads
+//.= +//0 and from Q*//.I to Q*/.@I2
Statement 2/A! Details of
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Mar$et 3oans raised in India
and Securities issued to
International Institutions
Details of market loans raised in !ndia and
Securities issued to !nternationalFinancial !nstitutions2
Statement 26! Statement of
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3oans and Adances
Amplification of Statement @2
Details of opening balance= additionalloans and ad)ances disbursed during the
year= repayments made= closing balances
and interest recei)ed for heads Q+0/0I to
Q+.,I by minor heads is shown