Hand Notes for Participants

8/11/2019 Hand Notes for Participants

1/15

Page 1of 15

ACCOUNTING PROCEDURE OF DISTRIBUTION FRANCHISE OPERATION UNDER BOT MODEL IN CESU

A) As per the Page-1 of Para A of the agreement with the franchise, CESU is a deemed

distribution licensee under the provisions of the Electricity Act 2003 having license to

supply electricity in certain areas of the state of Odisha. Para B says under the provision

of the Act, CESU is entitled to distribute electricity to specified area within its area of

supply through another person referred to as franchisee.

B) From the above proposition it may be understood that CESU is the Principal and the

Franchisee is an agent of CESU. Therefore the consumer ledger and all the accounting

entry in relation to the distribution business has to be kept/maintained in the books of

CESU. Here after the Franchisee may be referred as Distribution franchise (DF).

C) The very purpose of the accounting of revenue in the books of CESU is to keep the

consumer ledger up to date and make the consumer ledger equal in accounts with the

IT data base. As the prudent commercial/accounting practice, the Principal has to keep

up to date accounting of its debtors, creditors, assets and liabilities in order to fulfill the

legal/statutory requirements in a normal parlance. In our case as a licensee we have to

fulfill the requirements of the Electricity Act 2003 and the state regulatory body. As a

licensee under electricity act CESU is answerable to many stake holders in different

forum. Therefore we cannot escape our self from proper accounting of revenue and

consumer ledger.

As per the agreement, the DF will collect EC and other than EC on behalf of CESU in the

franchise area. As per the agreement, the DF shall deposit revenue and other collections in

CESU divisional bank account as per the terms and conditions stipulated in the aforesaid DF

agreement.

CESU shall raise a monthly invoice to DF on the basis of energy Input for

the billing month in respect to the division as per Clause No-8.2.6 of the DF agreement. We may

recall the same asassured revenueof CESU.

1) As per the agreement with DF, it shall deposit all revenue collected from the consumer

during the month. The amount of shortfall or excess in comparison to the Assured

Revenuewill be calculated at the 1st

week of the succeeding month.

2)

It is to mention here that from all the collections deposited in CESU bank account by theDF, deduct the other than EC collection by DF deposited in CESU account. Only EC

collection which has been deposited in CESU account will be taken into consideration for

calculation of short fall/excess from the assured revenue.

3) Amount in shortfall of assured revenue will be receivable from the DF. Similarly excess

collection over the assured revenue shall be shared by DF & CESU in pre-defined

stipulation as per the terms and conditions of the DF agreement.


2/15

Page 2of 15

4) Model accounting entries in the books of the division with the relevant activities to be

undertaken are as under.

1) When consumers are billed at the beginning of the month.

The accounting entry which is called assessment entry is as under as per the

prevailing accounting practice. Before passing the assessment entry the division hasto get the details of the component wise revenue with respect to LT and HT

consumers with proper authentication by the authorized officials of the franchise.

23.101 Sundry debtors for sale of Power-LT Dr

23.102Sundry debtors for sale of Power-HT Dr

23.201- Sundry debtors for electricity Duty Dr

23.701 Sundry debtors for recovery of cost of meter Dr

23.705 Sundry debtors for payment of monthly minimum fixed charges Dr

23.790 Sundry debtors for other charges Dr

To

61.201- Revenue from sale of power-LT

61.202- Revenue from sale of power-HT

61.301-Revenue from sale of power-Monthly Minimum fixed charges

61.610-Recovery of cost of meter

61.903-Miscellaneous charges from consumers-Reconnection fees

61.906-Miscellaneous charges from consumers- Service connection fees

61.990- Miscellaneous charges from consumers- Customer charges & others

62.251-Overdrawel penalty

Now fifteen numbers of New Account heads created are depicted as under.

28.100- Franchisee receivable (ENZEN)

28.101- Franchisee receivable (FEEDCO)

28.102- Franchisee receivable (SEA SIDE)

28.103- Franchisee receivable (RIVER SIDE)

46.131-Franchisee payable (FEEDCO)

46.130-Franchisee payable (ENZEN)

46.132-Franchisee payable (SEA SIDE)

46.133-Franchisee payable (RIVER SIDE)

26.300- Advance to Franchisee (ENZEN)

26.301- Advance to Franchisee (FEEDCO)

26.302- Advance to Franchisee (SEA SIDE)

26.303- Advance to Franchisee (RIVER SIDE)

62.100-Memorandum Franchisee sale

62.990- Other revenue from BOT model

76.201-Distribution Franchisee sharing of BOT Model


3/15

Page 3of 15

To be very specific we are taking examples from KED, KHURDA and the name of the DF

is FEEDCO. So our discussion shall be limited to the following ledger accounts as

under. Same procedure shall be followed for other DF .


46.131-Franchisee payable (FEEDCO)26.301- Advance to Franchisee (FEEDCO)

62.100(Memorandum Franchisee sale)


76.201- Distribution Franchisee sharing of BOT Model

It is decided that as per old practice any EC deposited at divisional account CCV will be

passed under account head 23.100-Collections from sundry debtors (revenue).

Therefore 23.100-Collections from sundry debtors (revenue) head will be added with

the above head for presentation purpose.

Situation No-1- When CESU has to pay the Franchisee sharing.(Example for understanding)

IN THE BOOKS OF KED,KHURDA

(1)

Let the bill served on FEEDCO is Rs.12,00,00,000/- on the Basis of Input*RPU.

28.101- Franchisee receivable (FEEDCO) Dr. 12,00,00,000/-

62.100-Memorandum Franchisee sale 12,00,00,000/-

(2)Let the DF deposited EC at 3 number of times at divisional account the total

amount of which comes to Rs.12,20,00,000/-.

Three CCVs has to be passed taking account head 23.100 -Collections from sundrydebtors (revenue) as under as per old practice.

(a)23.100 -Collections from sundry debtors (revenue) Rs.5,00,00,000/-

(b)

23.100 -Collections from sundry debtors (revenue) Rs.4,00,00,000/-

(c)


(3)

The division has incurred Rs.1,00,000/- in purchase of stationary and issued to DF

for spot billing.

First division has to pass the DCV taking account head 76.154-stationary a/c.

Then one JV will be passed debiting the Franchise receivable (FEEDCO) and

crediting stationary a/c as under.

28.101- Franchisee receivable (FEEDCO) Dr. 1,00,000/-

76.154-Stationary a/c. 1,00,000/-

(4)

Let the DF sharing is 36% on excess of Assured Revenue i.e Rs.20,00,000/-.The

commission is calculated as under. Rs.20,00,000/-*36%=Rs.7,20,000/-


4/15

Page 4of 15

The net sharing payable after deducting Rs.1,00,000/- for stationery expenses

incurred by the division.

When it was finalized at the month end that actual deposit is more than the

assured revenue as in the above case just reverse the entry at point-(1).The JV is as

under.(a) 62.100-Memorandum Franchisee sale Dr. 12,00,00,000/-

28.101- Franchisee receivable (FEEDCO) 12,00,00,000/-

Then Pass another JV for Sharing calculated for Rs.7,20,000/- as under.

(b) 76.201-Distribution Franchisee sharing of BOT Model Dr Rs.7,20,000/-

28.101- Franchisee receivable (FEEDCO) Rs.7,20,000/-

Lastly transfer the net amount payable of Rs.6,20,000/- after adjustment of the

stationary expenses incurred by the division to the 46.131-Franchisee payable

(FEEDCO)

The JV shall be as under.

(c ) 28.101- Franchisee receivable (FEEDCO) Dr. Rs.6,20,000/-

46.131-Franchisee payable (FEEDCO) Rs.6,20,000/-

The net DF sharing of Rs.6,20,000/ is paid by Head Office and necessary ATD issued

from the HO to KED,Khurda. The necessary entries and ledger depiction shall be as

under.

23.100 -Collections from sundry debtors (revenue)

Particulars Amount Particulars Amount

23.101

23.102

23.201

23.701

23.705

10,00,00,000

2,00,00,000

5,00,000

5,00,000

10,00,000

24.301-Bank

24.301-Bank

24.301-Bank

5,00,00,000

4,00,00,000

3,20,00,000

Total 12,20,00,000

Total

12,20,00,000



62.100(Memorandum

Franchisee sale

(For billing to the DF on the

basis of Monthly input*RPU)

76.154-Stationery a/c

12,00,00,000

1,00,000

62.100(Memorandum

Franchisee sale)

76.201 - Distribution

Franchisee sharing of

BOT Model

12,00,00,000

7,20,000


5/15

Page 5of 15

62.100-Memorandum Franchisee sale


76.201- Distribution Franchisee sharing of BOT Model


28.101 Franchisee receivable

(FEEDCO)

7,20,000 Profit & Loss A/c 7,20,000

46.131-Franchaisee payable (FEEDCO) A/C


37.001-- Inter Unit -Other

Transaction/Adjustments-HO

6,20,000 28.101 Franchisee receivable

(FEEDCO)

6,20,000

46.131-Franchaisee payable

(FEEDCO)

6,20,000

Total 19,20,000 Total 19,20,000


28.101- Franchisee

receivable (FEEDCO)

12,00,00,000 28.101 Franchisee receivable

(FEEDCO)

(For billing to the DF on the

basis of Monthly input*RPU)

12,00,00,000


Balance B/D 1,00,000 28.101 Franchisee

receivable (FEEDCO)

1,00,000


6/15

Page 6of 15

IN THE BOOKS OF HEAD OFFICE

(1)

When DF sharing is paid by HO,it has to pass DCV under account head 46.131-

Franchaisee payable (FEEDCO) A/C.

(2)

When ATD is passed to the division, JV passed as under.

37.034-Inter Unit -Other Transaction/Adjustments-KED,Khurda Dr.

To

46.131-Franchaisee payable (FEEDCO) A/C.

Ledger depiction in the books of Head Office shall be as under.

46.131-Franchaisee payable (FEEDCO) A/C


24.301-Bank A/c 6,20,000 37.034-Inter Unit -Other

Transaction/Adjustments-

KED,Khurda

6,20,000

Situation No-2- When CESU has to receive the shortfall from the assured revenue

from the DF.(Examples for understanding).

IN THE BOOKS OF KED,KHURDA

(1) Let the bill served on FEEDCO is Rs.12,00,00,000/- on the Basis of Input*RPU.

28.101- Franchisee receivable (FEEDCO) Dr. 12,00,00,000/-62.100-Memorandum Franchisee sale 12,00,00,000/-

(2)Let the DF deposited EC at 3 number of times at divisional account the total amount

of which comes to Rs.11,20,00,000/-.

Three CCVs has to be passed taking account head 23.100 -Collections from sundry

debtors (revenue) as under as per old practice.

(a)


(b)


(c)


(3)

The division has incurred Rs.1,00,000/- in purchase of stationary and issued to DF

for spot billing.

Division has to pass the DCV taking account head 76.154-stationary a/c.


7/15

Page 7of 15

Then JV will be passed debiting the Franchise receivable (FEEDCO) and crediting

Stationary a/c as under.

28.101- Franchisee receivable (FEEDCO) Dr. 1,00,000/-

76.154-Stationary a/c. 1,00,000/-

In this case the DF has to pay us Rs.81,00,000(Rs.80,00,000 for short fall from assured

revenue of Rs.12,00,00,000 and Rs.1,00,000 for reimbursement of stationery).

(4) When it was finalized at the month end that actual deposit is less than the

assured revenue as in the above case just reverse the entry at point-(1) for the

actual amount collected and deposited. The JV is as under.

62.100-Memorandum Franchisee sale Dr. 11,20,00,000/-

28.101- Franchisee receivable (FEEDCO) 11,20,00,000/-

Finally the total amount of Rs.81,00,000/ is paid by the DF at Head Office and

necessary ATC issued from the HO to KED,Khurda.The necessary entries and ledger

depiction shall be as under.

(4)

While getting ATC received from HO the division shall pass the JV as under.

37.001-Inter Unit -Other Transaction/Adjustments-HO Dr. Rs.81,00,000/-

28.101- Franchisee receivable (FEEDCO) Rs.81,00,000/-

(5)

Finally Rs.80,00,000 will be treated as Other revenue from BOT model for the

division and the JV to be passed to transfer it to income is as under.

62.100-Memorandum Franchisee sale Dr. Rs.80,00,000/-

62.990- Other revenue from BOT model Rs.80,00,000/-

The ledger presentation of the above transactions are as under.

23.100 -Collections from sundry debtors (revenue)


23.101

23.102

23.201

23.701

23.705

9,00,00,000

2,00,00,000

5,00,000

5,00,000

10,00,000

24.301-Bank

24.301-Bank

24.301-Bank

5,00,00,000

4,00,00,000

2,20,00,000

Total 11,20,00,000

Total

11,20,00,000



62.100(Memorandum Franchisee

sale

(For billing to the DF on the basis of

12,00,00,000 62.100(Memorandum

Franchisee sale)

37.001-Inter Unit -Other

11,20,00,000


8/15

Page 8of 15

Monthly input*RPU)

76.154-Stationery a/c 1,00,000

Transaction/Adjustments-HO 81,00,000

Total 12,01,00,000 Total 12,01,00,00062.100-Memorandum Franchisee sale



Balance B/D 1,00,000 28.101 Franchisee receivable

(FEEDCO)

1,00,000



Profit & Loss A/c 80,00,000 62.100- Memorandum Franchisee sale 80,00,000

IN THE BOOKS OF HEAD OFFICE

(1)When DF paid to HO of Rs.81, 00,000 /, HO has to pass CCV under account crediting

account head 28.101- Franchisee receivable (FEEDCO).

(2) When ATC is passed to the division JV passed .

28.101- Franchisee receivable (FEEDCO)To

37.034-Inter Unit -Other Transaction/Adjustments-KED,Khurda Dr.

Ledger depiction in the books of Head Office shall be as under.


28.101- Franchisee

receivable (FEEDCO)

62.990- Other revenue

from BOT model

(Differential amount)

11,20,00,000

80,00,000

28.101 Franchisee

receivable (FEEDCO)

(For billing to the DF

on the basis of

Monthly input*RPU)

12,00,00,000

Total 12,00,00,000 Total 12,00,00,000


9/15

Page 9of 15



37.034-Inter Unit -Other

Transaction/Adjustments-KED,Khurda

81,00,000 24.303-Bank A/c 81,00,000

Accounting entries for TDS on payment to Franchisee and ATD/ATC

procedure including advance to Franchise.

Whenever the Franchisee has to be paid for its share on excess collection over

assured revenue TDS has to be deducted on the Gross Amount of the Bill. Similarly

DF shall deduct TDS on the payment due to short fall in collection from assured

revenue. The payment to DF and receipt from DF is presently routed through theHead Office. After payment to DF or receipt from DF, respective ATD/ATC has to be

passed by the Head Office to respective units. After getting the ATD/ATC unit will

pass the necessary entry in its books.

Situation No-1- When CESU has to pay the Franchisee sharing.(Examples only for

understanding)

HO has to pass one JV for the TDS payable of Rs.1, 00,000/- out of Rs.19, 00,000/-

calculated after reimbursement of Rs.1, 00,000/- for expense incurred by CESU.

The calculation of the Net Payable may be as under.

Gross Franchisee Share Rs.20,00,000/-

Less- Reimburshment of

Expenses incurred by CESU Rs.1,00,000/-

Less- TDS of the Franchisee

Share Rs.1,00,000/-

Net Payable to DF Rs.18,00,000/-

HO shall pass two numbers of DCVs and Two JVs and one ATD for the above.

(a) JV for TDS in the books of HO as under.

46.131-Franchaisee payable (FEEDCO) A/C Dr Rs.1,00,000/-

To

46. xxx -TDS Rs.1,00,000/-


10/15

Page 10of 15

(Being TDS Payable of Rs.0.01 Crores on the gross amount of the Share of the

Franchisee of Rs.0.20 Crores)

(a) DCV may be passed using account Head 46.131-Franchisee payable (FEEDCO)

A/C for Rs.0.18 Crores .

(b)Another DCV may be passed for deposit of TDS by using account head 46.xxx for

Rs.0.01 Crores.(c) Final JV may be passed for the ATD raised on KED,Khurda as under.

37.034-Inter Unit -Other Transaction/Adjust.-KED,KhurdaDrRs.0.19Crores.

To 46.131-Franchaisee payable (FEEDCO) A/C Rs.0.19 Crores

Entries to be passed in the books of (KED,Khurda).

The division has to receive the ATD and make the following JV in its books.

46.131-Franchaisee payable (FEEDCO) A/C Dr Rs.0.19 Crores

37.001- Inter Unit -Other Transaction/Adjustments-HO Dr Rs.0.19 Crores.

12) As per the clause no-8.1.6 of the agreement with the DF provisional weekly

installment payment to the DF has been discussed. For the accounting treatment

of the same we may create new account heads as under.

26.300- Advance to Franchisee (ENZEN)

26.301- Advance to Franchisee (FEEDCO)

26.302- Advance to Franchisee (SEA SIDE)

26.303- Advance to Franchisee (RIVER SIDE)

The accounting entries for the advance and adjustment of the same against the

Franchisee Payable shall be as under.

Taking the same example as in Situation No-2 as above, Let the provisional/advance

paid to DF in one installment from the HO is Rs.0.02 Crores on behalf of

KED,Khurda.

(a) DCV has to be passed by the HO under account head 26.301- Advance to

Franchisee (FEEDCO) for Rs.0.02 Crores. The TDS payment on the same and its

Accounting Treatment is the same as mentioned above.Now the reconciliation for final payment to FEEDCO shown in the example as above

Is modified as under.


11/15

Page 11of 15

The calculation of the Net Payable may be as under.

Gross Franchisee Share Rs.0.20 Crores

Less- Reimburshment of

Expenses incurred by CESU Rs.0.01 Crores

Less- TDS of the FranchiseeShare of Rs.0.20 Crores Rs.0.01 Crores

Less- Advance payment at HO Rs.0.02 Crores

Net Payable to DF Rs.0.16 Crores

The necessary entries for the above in the books of Ho shall be as under.

(a) JV for TDS in the books of HO as under.


To

46. xxx Rs.0.01 Crores

(Being TDS Payable of Rs.0.01 Crores on the gross amount of the Share of the

Franchisee of Rs.0.20 Crores)

(b)DCV may be passed under account Head 26.301- Advance to

Franchisee (FEEDCO) for Rs.0.02 Crores .

(c )Another DCV may be passed for deposit of TDS by using account head 46.xxx for

Rs.0.01 Crores.

(d ) DCV may be passed for final payment under account Head 46.131-Franchisee

payable (FEEDCO) A/C for Rs.0.16 Crores .

(d)JV shall be passed transferring the advance to Franchise payable as under.

46.131-Franchisee payable (FEEDCO) A/C Dr. Rs.0.02 Crores .

To 26.301- Advance to Franchisee (FEEDCO) Rs.0.02 Crores

(e) Final JV may be passed for the ATD raised on KED,Khurda as under.

37.034-Inter Unit -Other Transaction/Adjust.-KED,KhurdaDrRs.0.19Crores.

To 46.131-Franchaisee payable (FEEDCO) A/C Rs.0.19 Crores

Entries to be passed in the books of the division (KED,Khurda).

The division has to receive the ATD and in make the following JV in its books.


12/15

Page 12of 15


37.001- Inter Unit -Other Transaction/Adjustments-HO Dr Rs.0.19 Crores.

Situation No-2- When CESU has to receive the shortfall from the assured revenue

from the DF.(Examples only for understanding)

In the books of Head Office

Similarly in case of receipts from the DF, HO will pass the appropriate entries taking

the account head 28.101- Franchisee receivable (FEEDCO) & Account head 27.425-

Income tax deducted at source-Other receipt. The ATC will be issued for the gross

amount to the division.

Therefore Ho has to pass two numbers of JVs and one CCV and one ATC as under.

a)

When HO receive the short fall from the DF of Rs.79,00,000/- after deduction of

say Rs,2,00,000/ as TDS from the gross amount of Rs.81,00,000/-.

CCV shall be passed taking the Account head 28.101- Franchisee receivable

(FEEDCO) for Rs.79, 00,000/-

b)

For the TDS deducted by the DF on remittance of the short fall.JV has to be passed

as under.

27.425-Income tax deducted at source-Other receipt Dr. Rs,2,00,000/-

28.101- Franchisee receivable (FEEDCO). Rs.2,00,000/-c) At the time of passing the ATC in favour of KED,Khurda

JV will be passed as under.

28.101- Franchisee receivable (FEEDCO). Dr. Rs.81,00,000/-

37.034-Inter Unit -Other Transaction/Adjust.-KED,Khurda Rs.81,00,000/-

In the books of KED,Khurda

a)

After getting the ATC from the HO khurda will pass the following JV.

37.001- Inter Unit -Other Transaction/Adjustments-HO Dr. Rs,81,00,000/-

28.101- Franchisee receivable (FEEDCO). Rs.81,00,000/-

Lastly some guidelines are given as under for month end reconciliation for data

sanitization with expected critical situations with appropriate accounting entries .

1) Any amount of revenue deposited by the DF in the divisional bank account during a

month, CCV has to be made by the division under account head 23.100.


13/15

Page 13of 15

2) Any amount of other collections deposited by the DF in the divisional bank account,

CCV will be made using the account code 47 & 48 as per the old practice.

3) In usual manner 23.100 will be nullified by transferring it to respective consumer

account like LT, and HT at the month end.

4)

In Post Franchise scenario for the purpose of crediting the actual amount to theconsumer account and calculation of shortfall/deficit from the assured revenue

proper reconciliationhas to be carried out by the division along with the officials of

DF at the end of every month.

5)

The procedure/guidelines for such exercise may be as follows.

a) Separation of EC & Other than EC collection for calculation of shortfall/excess

from assured revenue.

b) Bill revision amount credited to the consumer account shall not be treated as

revenue collected and kept separate from the calculation. The amount of bill

revision and category of consumers involved has to be disclosed by the DF to the

division with proper authentication for accounting entry of the same at divisional

level.

c) Similarly any cheque dishonored and debited to the consumer account will be

deducted from the entire collection by the DF of the relevant month. The

amount of cheque dishonored and category of consumers involved has to be

disclosed by the DF to the division with proper authentication for accounting

entry of the same at the division.

d) Any interest on security deposit credited to the consumer account will be

treated as deemed revenue for calculation of short fall or excess over assured

revenue. The amount of interest on security deposit and category of consumers

involved has to be disclosed by the DF to the division with proper authentication

for accounting entry of the same at the division.

e) Any amount of security deposit adjusted against revenue and credited to the

consumer will be treated as deemed revenue for calculation of short fall or

excess over assured revenue. The amount of interest on security deposit

adjusted against revenue and category of consumers involved has to be

disclosed by the DF to the division with proper authentication for accounting

entry of the same at the division.

f)

Any departmental building of CESU which are billed but revenue not collected by

the DF will be treated as deemed revenue collected by DF and to be taken into

consideration of short fall or excess over assured revenue. The amount of the

billing on different offices of the CESU has to be disclosed by the DF to the

division with proper authentication for accounting entry of the same at the

division.


14/15

Page 14of 15

g) It is to mention here that from Para-B to Para-G the accounting entry to be

passed will be as usual as per prevailing practice. The purpose of those

accounting entries at division is to equalize the sundry debtors in accounts with

the sundry debtors of IT data base in a uniform manner.

h)

Any expenditure by the division like stationery, vehicle or other reasonableexpenditure for which the DF would have to do it in the usual course of its

business has to be recovered from the amount payable to DF. A separate invoice

has to be raised by the division on the DF for recovery of the same. The

respective accounting entry has to be passed which are depicted in subsequent

Paras.

i) For classification of revenue, other revenue, non cash item either being debited

or credited or any adjustment to consumer account described above will be

undertaken by the IT cell of CESU from the soft copy/data base of DF for all the

postings undertaken by the DF during the month. IT cell of CESU may be directed

to take over the matter to finalize the month end reconciliation.

6) Therefore during the reconciliation the following critical items may be segregated

with the help of IT.

a) The actual amount of revenue realized in cash and deposited in the divisional

account.

b) The actual amount of revenue realized in cash but not deposited in the

divisional account. In this peculiar situation we have to pass one entry debiting

the Franchise receivable A/C and crediting the 23.100 and subsequently 23.100

will be nullified by transferring it to the respective consumer accounts as per

old practice. The detail of entry has been mentioned in point no-9.

c) The actual amount of other collection realized in cash but not deposited in the

divisional account. Similar to the above In this peculiar situation we have to

pass one entry debiting the Franchise receivable A/C and crediting the

47.xxx/48.xxx.The detail of entry has been mentioned in point no-10.

d) The actual amount of other collection realized in cash and deposited in the

divisional account.

e) The actual amount of other collectionrealized but wrongly credited to EC of the

consumers.

f)

The other non cash adjustmentsaffected to the consumer account.

g) The adjusted revenue in form of non-cash arrived at the end of the monthly

reconciliation on the basis of which short fall or excess will be calculated.

h) For the final determination of the above from the data base of the DF the help of

the IT cell of CESU is a must.


15/15

Page 15of 15

7) Any amount of revenue realized in cash but not deposited in the divisional

account? In this peculiar situation we have to pass one entry debiting the

Franchise receivable A/C and crediting the 23.100 as under. This can be known

after the month end reconciliation only.





To

23.100

8) Any of other collection realized in cash but not deposited in the divisional

account? Similar to the above in this peculiar situation we have to pass one entrydebiting the Franchisee receivable A/C and crediting the 47.xxx/48.xxx.





To

47. xxx

48. xxx

The above document is issued with the previous approval of competent

authority, which will guide the accounting units where the DFs are in operation in

addition to the head office of CESU.

THE END

Hand Notes for Participants

Documents

Transcript of Hand Notes for Participants