ag office accounting

7/21/2019 AG Office Accounting

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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



What is the end product

of the accounting ?State monthly accounts

Annual Finance Accounts Annual Appropriation

Accounts

These are submitted to the Govt. / Legislature



Other Important outputs

Classified Abstracts

Consolidated Abstracts

Detail Books

Ledger

These are internal accounts kept by the AG



Other Important outputs

Journal

Broadsheets

Annual Detailed

Appropriation Accounts

These are internal accounts kept by the AG



Monthly

Accounts

Compilation



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$



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



Treasury

Accounts

SectionCould be called by different names indifferent offices like

Central Treasury Section or

Book ! section "#$%



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



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



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




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




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




"&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



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




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




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



Treasury

Accounting in

Departmental

Compilation

Sections



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



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



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



.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



D C Sections ! compilation

Dr - *+,* ... Ser)ice <a4or #eadCr - Cash ( 1BD

Reeber Double %ntries&

%ffect of postin's b Treasur

accounts section




%ffect of postin's b DC

ection

for )ouchers without any reco)eriesDr Ser)ice <a4or #ead

"-% Dr *+,* ... Ser)ice <a4or #ead




%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%




?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




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




?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



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/,+



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



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%



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 (*$")




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 (*$**)




(*$*,) 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




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




<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




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



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



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



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



Wor$s

Accounts.or/s ccount

ections



Wor$s Accounts !

Coerage

Study the different important

portions of the monthlyaccounts

Study the accounting in A6office after receipt of theaccounts



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



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



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



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



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



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



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 *+. ./.



W A ! Monthly A%c ! & '(

Cash

!mprestTemporary ad)ances

Gndisbursed cash

M thl A t



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% [email protected]*.;

0.+ 3C&L #ousing .,*,;

M thl A t



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 +*;*;+. +*;*;+.



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



W A ! Classified *"ct-! & /0

Classified of ser)ice #ead

receipts e5actly similar toForm +



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



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



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



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



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



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



&orest

Accounts9orest ccountections



&orest Accounts !

Coerage

Study the different important

portions of the monthlyaccounts

Study the accounting in A6office after receipt of theaccounts



&orest Accounts

Structure

$CCF

CCF

DF&

1ange officers

& t A t



&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



&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



&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



& 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



& 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



& 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



& 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 *,,/ ./.



&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



&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



&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



Subsidiary Accounts

BS of **01emittances to Try

Che>ues

BS of *,,/ Forest Ad)ances



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




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




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




$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




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



Account

Current

Sections

AC S ti



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



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



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



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)



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



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



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



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



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



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



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



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



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 ;;%



5oo$

Section

Consolidation of Monthly



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



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



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



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



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



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



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



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



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%



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%



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



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



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



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



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



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



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



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



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



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



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



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!



&inal

AccountsFinance and Appropriation Accounts

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




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





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





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





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





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





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





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




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



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



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




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 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



#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




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<%




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<%


C t l G t



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<%




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



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



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-



* -

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



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



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



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



&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 [email protected]. of CA<%

&inance Accounts



&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 [email protected]. of CA<%%

&inance Accounts



&inance Accounts

Finance Accounts is di)ided into 0

parts

$art ! Summarised statements1e)enue

Capital

DD1 and Contingency Fund

"$ara [email protected] of CA<%

&inance Accounts



&inance Accounts

$art !! Detailed Statements

Section A

1eceipts and e5penditure on re)enue andcapital accounts

Section BDD1Contingency Fund

"$ara [email protected] of CA<%

Statement 2! Summary



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




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



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



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



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



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




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



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



sho;ing distribution bet;een

harged and ?oted +,penditure

Break-up of total e5penditure under

)arious sectors as )oted and charged

e5penditure2

Statement '! Detailed



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



"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



+,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




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




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



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



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



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



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



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



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

ag office accounting

Documents