ACCOUNTS CODE VOLUME I

CHAPTER 2

General Outlines of the System of Accounts

7-8. Consolidated Funds, Contingency Funds and Public Accounts of India

and of the States 26
9-12. Account of the Central and State Governments with the Bank 27
13. Transactions of other Governments in State Treasuries 29
14. State transactions in Central Treasuries 29
15. General outlines of the System of Accounts 29
16. Accounts between different Account Circles 32
17. Authorities responsible for the preparation of Annual Accounts of the
Central Government and State Governments 33
18. The Combined Finance and Revenue Accounts of the Central and the
State Governments in India. 34
19. Proforma Accounts 34
20. Journal and Ledger 35

CHAPTER 3

General Principles and Methods of Accounts

General
21. Period of Accounts 36

22. Cash basis of Accounts 36

23. Currency in which Accounts are kept 36
Form of Accounts
24-26. Main Divisions of Accounts 38
27. Major, Minor and Detailed heads 40
28. Classification of expenditure as “Charged” or as “Voted” 40
Classification of transactions in Accounts
29. General limitations 41
30. General Principles of classification 41
30-A. General principles of allocation of expenditure between Capital and
Revenue 41
Important general orders governing the classification of
certain individual transactions
31. Pay and allowances (Other than Travelling Allowances) of Govt. servants 42
32. Travelling expenses 43
33. Expenditure on Public Works 43
34. Contributions made by or to Government 44
35. Refunds of Revenue 44
36. Classification of transactions under “Civil Advances” 44
37. Classification of transaction under “Suspense” 46
37-A. Exchange in respect of transactions in England and the Mission Abroad 46
Important general orders governing classification of certain
individual transactions
38. Cost of acquisition of land 47
39. Sale proceeds of Government land and buildings 47
40. Municipal rates and taxes 49
41. Cost of Survey of India and other scientific parties accompanying a
military expedition 49
General methods of Accounting
42. Accounting for transactions pertaining to more than one major head
of account 50
43. Record of capital expenditure in Accounts 51
44. Accounting for transactions relating to Scheduled areas 51
45. Deleted 51

46. Accounting for losses 51

47. Exhibition of recoveries in Government Accounts 51
48. Accounting for recoveries of overpayments 51
49. Accounts of commercial undertakings 52
50. Working Expenses of Commercial Departments 52
51. Transactions with other Governments and account circles 52
52. Rectification of misclassification 52
53. Writes-off from balanced heads to Government 56
54. Accounts to work from balance to balance 57
 CHAPTER 2
GENERAL OUTLINES OF THE SYSTEM OF ACCOUNTS

Consolidated Funds, Contingency Funds & Public Accounts of India

and of the States

Article 7. The Central Government and the State Governments have separate
Consolidated Funds of their own, entitled the Consolidated Fund of India’ and ‘the
Consolidated Fund of the State’, respectively, into which the revenues received by the
Central (including union territories) State Governments, loans raised by that Government
by the issue of treasury bills, loans or ways and means advances, and moneys received by
that Government in repayment of loans are credited, and from which the expenditure of
that Government when so authorized by the appropriate Legislature is met. The Central
Government and the State Governments have also separate Public Account entitled ‘the
Public Account of India’ and ‘the Public Account of the State’, respectively, into which
all other public moneys received by or on behalf of the Central (including union
territories)/State Governments are credited and from which disbursements are made in
accordance with the prescribed rules. The procedure to be followed for the payment into
and the withdrawal, transfer or disbursement of moneys from, the Consolidated Fund and
the Public Account and for the custody of moneys standing in that Fund and account is
regulated by law made by the appropriate Legislature and pending such registration, by
the rules made by the President or the Governor of the State, as the case may be, under
Article 283 of the Constitution. The President and the Governors of the States have
authorized under this Article the continuance of the rules in force before the
commencement of the relevant provisions of the Constitution. These rules include
provisions to secure that all public moneys received on account of the Central
Government or of the State shall, with such exceptions as may be specified in them, be
paid into the Consolidated Fund or the Public Account of India of the State concerned, as
the case may be.

Article 7-A. The Central Government and each State Government have or may
have a separate Contingency Fund, entitled ‘the Contingency Fund of India’ and ‘the
Contingency Fund of the State’, respectively. The Fund will be at the disposal of the
President or the Governor of the State to enable advances to be made by him for meeting
unforeseen expenditure, pending authorization of such expenditure by Parliament or the
State Legislature under appropriations made by law. The procedure to be followed for the
custody of, payment of moneys into and the withdrawal of moneys from such Fund is
regulated by law made by the appropriate Legislature and pending such legislation by the
rules made by the President or the Governor of the State.

Note :—Though the transactions of the Railway Department form part of the
Consolidated Fund, the Contingency Fund and the Public Account of India, they are
nevertheless taken against the Railway Fund which has been created proforma in the
books of the Reserve Bank of India.

Article 8. Save as may be specifically provided in any case, cash balances in the
separate ‘Consolidated Funds or Contingency Funds and Public Accounts of India and
States’ are either held in a Government treasury or kept with the Bank.

Account of the Central and State Governments with the Bank

Article 9. The Central Government and each of the State Government have made
separate agreement with the Reserve Bank of India by virtue of which the general
banking business of these Governments in which business is (included the receipt,
collection. payment and remittance of moneys on behalf of Government) is carried on
and transacted by the Bank in accordance with and subject to the provisions of the
agreement and of the Reserve Bank of India Act, 1934, and in accordance with and
subject to which orders as may from time to time be given to the Bank by the Central
Government or the State Government. as the case may be. Central or State Government
business is transacted at any of the offices, branches or agencies of the Bank for the time
being in existence as may from time to time be so directed. The Central Government as a
general rule, operates on every office and branch of the Reserve Bank of India and on
ever branch of the State Bank of India throughout India acting as the agent of the Reserve
Bank. The operations of each State are confined to the offices and branches of the two
Banks which have been designated as falling within the area of that particular State. The
receipt and payment of moneys on behalf of a State outside its jurisdiction are ordinarily
arranged through the Accountant-General of the State in which the transactions take
place.

Note :—The Government of Jammu and Kashmir State have not so far entered
into agreement with the Reserve Bank of India for the conduct of their general banking
business by the Bank.

[The agreement between the Governor of the State of Andhra Pradesh and the
Reserve Bank of India is printed as Appendix I to the Andhra Pradesh Treasury Code,
Volume II].

[In the State of Andhra Pradesh there are Treasury Pay Offices of the State Bank
of India, Hyderabad at certain district headquarters. A Treasury Pay Office transacts the
cash business of the District Treasury at the place — see Instruction I under Treasury
Rule 3 in Part I, Volume I of the Andhra Pradesh Treasury Code].

Article 10. Each office or Branch of the Reserve Bank keeps two separate
account of cash transactions undertaken by it on behalf of Government one for the
transactions of the Central Government and the other for the transactions of the State
Government within whose area it is situated. All transactions which cannot be debited or
credited directly to the account of the Central Government with the Bank are taken to
the account of the Government of the State in which they occur so that this account will
include as well the transactions relating to other States. Separate statements of
transactions in their Central and State Government account.> together with all supporting
vouchers, etc., are transmitted by each office and branch of the Thnk daily to the
Treasury Officer or to the Accountant-General, as the case may be. At the close of each
month the balances of the two accounts are transferred to the Central Accounts Section of
the Reserve Bank at Nagpur.

Note :—The transactions of Railways at offices and branches of the Reserve Bank
are distinguished from other Central transactions in the initial accounts and are classified
by each Railway separately. These transactions are taken against the Railway Fund in the
books of the Reserve Bunk direct and do not therefore pass through the Treasury
Accounts or consequently through the accounts of the Civil Accountant-General. Each
office and branch of the Bank furnishes the Accounts Officer of each Railway separately
every day with a copy of the daily reroll relating to the transactions of that Railway
together with the requisite vouchers.

Article 11. Each branch of the State Bank of India transacting Government
business as agent of the Reserve Bank classifies the daily receipts and disbursements on
behalf of Government in two groups, Central and State, the latter embracing transactions
not only on behalf of the State in which the Bank is situated but also on behalf of other
States. Separate statements of transactions of the Central Government and of those taken
against the provincial account are forwarded by each branch daily with supporting
vouchers to the local Treasury Officer or the Accountant-General, as the case may be.
The totals of such transactions are also reported by the Bank at the close of each day to
the Central Accounts Section of the Reserve Bank through the Central Accounts Office
of the State Bank.

Note :—The procedure prescribed in the note under Article 10 is followed in

respect of Railway transactions taking place at the branches of the State Bank of India.

[In the State of Andhra Pradesh there are Treasury Pay Offices of the State Bank
of India at certain district headquarters. A Treasury Pay Office transacts the cash business
of the District Treasury at the place see instruction I under Treasury Rule 3 in Part I,
Volume I of the Andhra Pradesh Treasury Code.]

Article 12. Complete accounts of the Central Government and of each of the State
Governments with the Bank are maintained by the Central Accounts Section of the
Reserve Bank which also acts as General Clearing House for the adjustment of
transaction between different Governments. All adjustments to be made between the
account of the Central Government and that of States or between the accounts of different
States as well as all payments which one of these Governments had to make to another
are advised by the Accounts Officer authorized in this behalf to the Central Accounts
Section of the Reserve Bank, which will pass the necessary entries in the accounts of the
Government concerned maintained in the books of the Bank. Details of transfer effected
in its books against the balance of the State Government or of the Central Government, as
the case may be, on account of adjustments advised by different Account Offices are
communicated by the Central Accounts Section of the Reserve Bank to the Accountants-
General concerned at the close of each day. At the close of the accounts of each month a
statement of closing balance of each Government on the book of the Bank after taking
into account all cash transactions in all the offices, branches and agencies of the Bank
and the adjusting transactions on its own books is forwarded by the Central Accounts
Section to the Accountant-General concerned.

Transactions of other Governments in State Treasuries

Article 13. Cash balances held in a State Treasury form part of the Consolidated
Fund, the Contingency Fund (if one has been established) and the Public Account of the
State to which the Treasury belongs. The Treasury Rules of each State Government
issued under Article 283 of the Constitution, provide that moneys may be received and
payments may be made on behalf of the Central Government and other State
Governments by a State Treasury situated at a place where the treasury business is not
conducted by the Bank, such receipts and payments being taken in the first instance the
cash balance of the State concerned. On receipt of intimation of such transactions through
the monthly Treasury Account or otherwise the Accountant-General makes the requisite
adjustments through the Central Accounts Section of the Reserve Bank against the
balances of the Central Government or other State Governments held by the Bank
Moneys paid or received in the office of the Accountant-General on behalf of another
State and book entries made in the offices of the Accountant-General affecting the
accounts of another State or the Central Government will likewise be adjusted by the
Accountant-General through the Central Accounts Section of the Reserve Bank against
the balances of the Central or State Govt., as the case may be. But see the Note below and
Article 16 (2).

Note :—As the general banking business of the State of Jammu and Kashmir is
not at present conducted for them by the Reserve Bank of India (See note under Article 9)
the settlement of transactions between the State and other States/the Centre is effected in
cash or by Bank drafts in accordance with the instructions contained in separate orders.

State Transactions in Central Treasuries

Article 14. Cash balances held in the Treasuries of the Central Government form
part of the Consolidated Fund, Contingency Fund and the Public Account of India.
Transactions on behalf of State Governments arising in these treasuries are taken against
Central balances in the first instance and are subsequently adjusted by the Accountant-
General against the balances of the State concerned through the Central Accounts Section
of the Reserve Bank. But see the Note under Article 13.

General Outlines of the System of Accounts

Article 15. The general outlines of the system of accounts of the Central and State
Governments, briefly stated, are as follows :—

(a) All receipts in India on behalf of the Central and State Governments are paid
into a Treasury or the Bank. Except as provided in clause (b) below, the initial accounts
of such receipts are maintained at the Treasury;

(b) Receipts realized in the Railway, Defence, Posts and Telegraphs, Public
Works, Forest and any other departments which may be authorized in this behalf are paid
into a Treasury or the Bank in lump and are accounted for at the Treasury merely as
receipts on behalf of such departments. The detailed accounts of such receipts are kept by
the departmental officers concerned.
30 THE ANDFIRA PRADESH ACCOUNTS CODE

(c) Payments in India on behalf of the Central and State Governments are
ordinarily made either at a Treasury or the Bank; some department’s officers are,
however, authorized to withdraw sums in lump from a Treasury or the Bank for making
payments. In the former case, the initial accounts of payments are kept at the Treasury. In
the latter case, such accounts are maintained by the departmental officer concerned;

The accounts referred to in this clause do not relate to the accounts maintained by
Government Servant in respect of expenditure incurred from permanent advances.

(d) At the beginning of each month each Accountant-General receives from the
Treasuries under his jurisdiction monthly accounts supported by the requisite schedules,
vouchers, etc., in respect of the transactions which took place in the Treasury during the
previous month. All State and those Central Treasuries, which render accounts to State
Accountants-General, submit a double set of accounts, one for transactions of the State
Governments and the other for transactions of the Central Government. Central
Treasuries, which render accounts to the Accountant-General, Central Revenues, furnish
however only a single account, in which any transactions on behalf of State Governments
are accounted for under the appropriate Remittance head pending adjustment against the
balances of the State concerned.

[In the State of Andhra Pradesh the monthly accounts sent by Treasuries to the
Accountant- General classified accounts]

(e) Officers of the Civil Departments who pay their receipts into the Consolidated
Fund or the Public Account or withdraw moneys for expenditure there from or from the
Contingency Fund in lump, submit detailed any accounts of their transactions to the
respective Account Officers. Some Departmental Officers are required to render to the
Account officer compiled accounts with suitable abstracts of their transactions classified
under prescribed heads of accounts;

(f) From the accounts furnished by Treasuries and Civil Departmental Officers,
departmental classified abstracts are compiled by the Civil Account Officers showing the
monthly receipts and payments pertaining to each department for the whole account
circle classified under the relevant major, minor and detailed heads. Separate classified
abstracts are maintained for each department, each group of small departments or each
major head or group of major heads of account not relating to any particular department
or departments according to local convenience. This transaction is adjustable against a
department or against a major head not relating to any particular department which are
intimated to the Civil Account Officer by another Account Officer as well as all book
adjustments against a departmental or other major head which are initiated in the Account
Office itself are also incorporated in the relevant Departmental Classified Abstracts so
that the latter may include monthly all transactions of whatever nature connected with the
receipts and payments pertaining to each department or major head of account. From
these classified abstracts, separate Departmental Consolidated Abstracts showing the
progressive totals month by month under major/minor and detailed heads of revenue
receipts and service payments are compiled. Separate Consolidated Abstracts are
maintained for each department or major head of account or for a group of departments
or major heads of account as may be found convenient.
Art. 15] General Outlines of the System of Accounts 31

The Departmental Classified Abstracts and the Departmental Consolidated

Abstracts for the Central Departments are compiled separately from those for
Departments of the State Government.

(g) The transactions relating to Debt and Remittances heads appearing in the
Treasury Cash Accounts and lists of payments, and in the Departmental and other
Abstracts are collected for the whole circle of account under each head of account from
month to month in a Detail Book. From the figures in the Detail Book, the Consolidated
Abstract of Debt and Remittance transactions is prepared showing the progressive totals
month by month under each such major and detailed heads as may be found necessary.

Separate Detail Book and Consolidated Abstracts are compiled for Central and
State transactions.

(h) The final stage of compilation is the preparation of the Abstract of Major head
totals showing the receipts and disbursements by major heads during and to end of the
Departmental Consolidated Abstracts and the Consolidated Abstracts of Debt and
Remittance transactions. From these Consolidated Abstracts are also compiled the
monthly and the annual accounts of the Central and State Governments.

The cash balance of each Government in the books of the Accountants-General at

the close of the month will then be reconciled with the balances shown in the Cash
Accounts recorded by Treasury Officers and with the statements of closing balance
received from the Central Accounts Section of the Reserve Bank.

(i) Departmental officers of the Posts and Telegraphs and Railway Departments
submit accounts of their transaction to the respective Posts and Telegraphs and Railway
Account Officers. The Posts and Telegraphs and Railway Account Officers render their
monthly accounts to the Accountant-General, Posts and Telegraphs and the Railway
Board, respectively and the latter two consolidate the accounts of the entire transactions
of these two departments. The accounts of Defence Services as a whole are compiled by
the Controller-General of Defence Accounts on the basis of particulars of receipts and
disbursements furnished by the various Defence Account Officers.

(j) A copy of the monthly accounts of each State Government is submitted to it by

Accountant-General concerned. The Accountant-General, Central Revenues, received
from each Civil Account Office an abstract of the account of the transactions of the
Central Government compiled by it for each month and these accounts together with the
accounts for the month prepared in his office are consolidated into a single monthly
account for submission to the Central Government. The Accountant-General, Posts and
Telegraphs and the Railway Board submit the consolidated monthly accounts of their
respective departments separately to the Central Government.

(k) Each Civil Account Officer works out the progressive figures during the year
of the Central and State accounts of his circle. On closing the accounts for March (Final),
the Central and State accounts of each circle for transactions of the whole year are
submitted by each Civil Account Officer to the Comptroller and Auditor-General.

(l) The consolidated annual accounts of the Posts and Telegraphs, Railways and
Defence Services are submitted to the Comptroller and Auditor-General by the
Accountant-General, Posts and Telegraphs, the Railway Board and the Comptroller
General of Defence Accounts respectively.
Art. 16] General Outlines of the System of Accounts 31

Accounts between Different Account Circles

Article 16. (1) Subject to any general or special orders issued by Governments
after consultation with the Comptroller and Auditor-General transactions in one account
circle which are adjustable in the accounts of another circle are passed on month by
month to the latter for adjustment through one or the other of the following accounts :—

(i) Exchange Accounts,

(ii) The Central Adjusting Accounts,
(iii) Settlement Accounts.
(2) All transactions arising in the accounts of a Defence or Posts and Telegraphs
Account Officer which are adjustable in the books of a Civil or a Non-Civil Account
Officer (other than a Railway Account Officer) are passed on through the Exchange
Accounts. If any such transaction has to be adjusted against the balance of a State
Government, the money settlement in respect of it is effected by the Accountant-General
of the State to whom the transaction is passed, Civil Account Officers utilized the media
of Exchange Accounts for passing on transactions of the Central Government which are
adjustable on the books of other Account Officers excepting Railway Account Officers.
Book transactions arising in the Central Section of the accounts of a Civil Account
Officer which are adjustable in the Accounts of a Province kept by another Account
Officer are also passed on through Exchange Accounts so that the latter Account Officer
may adjust the transaction against the balance of the State.

[The general procedure relating to Exchange Accounts is described in Chapters 7

and 10 of Volume IV of the Comptroller and Auditor-General’s Account Code].

(3) The Central Adjusting Account is operated upon by a Defence / Posts and
Telegraphs Account Officer who has not been authorized to exchange account direct with
a Posts and Telegraphs / Defence Account Officer.

[The procedure to be followed in operating on this account is set out in Chapter

15 of Volume IV of the Comptroller and Auditor-General’s Account Code].

(4) Transactions initially taken against the balance of a State which are eventually
adjustable against the balance of another State are passed on to the Accountant- General
of the latter State through the Settlement Accounts and the money Settlement between the
two States in respect of such transactions is effected by the Accountant- General of the
former State through the Central Accounts Section of the Reserve Bank. Transactions
appearing in the books of Civil Account Officers which are adjustable against Railways
as well as transactions arising in the accounts of Railways which are adjustable in the
Books of Civil Defence and Posts and Telegraphs Account Officers are also settled
through the machinery of the Central Accounts Sections of the Reserve Bank and the
accounts through which such transactions are passed on to or by Railway Account
Officers fall under the category of the Settlement Account.

[The procedure connected with the adjustment of transactions passed through the
Settlement Accounts is described in Chapter 8 of the Volume IV of the Comptroller and
Auditor- General’s Account Code].

(5) In respect of transactions originating in their accounts which are adjustable

against the balances of a State Government, the Accountant-General, Central Revenues,
Art. 17] General Outlines of the System of Accounts 33

the Deputy Director of Audit, Commerce, Steel and Mines and Deputy Directors of
Audit, Food Rehabilitation Supply, Commerce, Steel and Mines effect the necessary
money settlement through the Central Accounts Section of Reserve Bank, the
transactions being passed by them through the head “Adjusting Account between Central
Government”. Transactions pertaining to State Governments are also settled direct with
the Bank through the head “Adjusting Account between Central and State Governments”.
An account of the transactions passed though this head is furnished by these Account
Officers to the State Accountant-General or Comptroller concerned for final adjustment.
This account falls under the category of Settlements Accounts mentioned in clause (4)
above.

(6) Transactions of the Central and State Governments in the United Kingdom
except those representing genuine sterling assets and liabilities of the Central
Government are passed on to India monthly through the Account Current between
England and India for adjustment under appropriate heads of accounts in the books of the
various Account Offices in India.

[The detailed procedure which is followed in Account Offices in regard to the

adjustment of these transactions is described in Chapter 16 of Volume IV of the
Comptroller and Auditor- General’s Account Code].

(7) The monthly Central and State accounts of each account circle thus include
not only the receipts and disbursement of the circle but also in the receipts and
expenditure in the United Kingdom and all credits and debits passed on to it for
adjustment by other account circle in India.

Note —The term “Account Current” may be used in a general sense to include the
different classes or accounts mentioned in this Article as well as the Accounts with
Governments of other countries. An account Current purports to be an extract from the
books of the officer who dispatches it, and to show the amounts he has passed to debit or
credit of the other party of the account with any necessary explanations of the credits, and
with documents supporting the debits.

Authorities Responsible for the Preparation of Annual Accounts of the

Central Government and State Government

Article 17. (i) The annual accounts (including Appropriation Accounts) of the
Central Government and of each State Government shall be prepared in the form
prescribed by the President on the advice of the Comptroller and Auditor-General of
India under Article 150 of the Constitution of India. These accounts shall be submitted to
the Parliament and to the respective State Legislature on or before such dates as may be
determined with the concurrence of the Government concerned.

(ii) The Annual Accounts (including Appropriation Accounts) in respect of State

Governments are prepared by the concerned Accountant-General and submitted to the
Comptroller and Auditor-General of India for approval and transmission to the Governor
of the State concerned along with his report thereon in terms of Article 151 (2) of the
Constitution and Section 11 of the Comptroller and Auditor-General’s (Duties, Powers
and Conditions of Service) Act, 1971 for being laid before the Legislature.

(iii) Appropriation Accounts of Central Ministries (other than Ministry of

Railways) and or Central Civil Departments shall be prepared by the respective
Ministries and

[A. Code—3]
Art. 17] General Outlines of the System of Accounts 34

Departments under the guidance and supervision of the Controller General of Accounts,
and signed by their Chief Accounting Authority. Union Government Appropriation
Accounts by condensing and consolidating the aforesaid (Civil) required to be submitted
to Parliament shall be prepared by the Controller General of Accounts Appropriation
Accounts. Appropriation Accounts pertaining to Department of Posts and Telegraphs,
Railways and Defence shall be prepared and signed by the Secretaries to the Government
of India in the Ministries of Communications, Railways and Financial Adviser, Ministry
of Finance (Defence) respectively,

(iv) Annual Accounts of the Government of India as a whole (including

transactions of Departments of Posts and Telegraphs, Defence and Railways and
Transactions under Public Accounts of India and Union Territory Governments) showing
under the respective heads the annual receipts and disbursement for the purpose of the
Union, shall be prepared by the Controller General of Accounts.

(v) The Accounts mentioned in (iii) and (iv) above, shall be prepared by the
respective authorities on dates mutually agreed upon with the Comptroller and Auditor-
General of India in the form prescribed by the President on the advice of the Comptroller
and Auditor-General and sent to the latter for recording his certificates. The Certified
Annual Accounts and the Reports relating to the accounts shall be submitted by the
Comptroller and Auditor-General to the President in accordance with provisions of
Section 11 of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of
Service) Act, 1971 and clause (1) of Article 151 of the Constitution of India.
(Substituted by G.O. Ms. NO. 187, Fin. & Plg., Dt. 25-7-87)

The Combined Finance and Revenue Accounts of the Central

and State Governments in India

Article 18. The Comptroller and Auditor-General of India also submits to the
President a Financial Statement incorporating a summary of the accounts of the Central
Government and of all the States for the last preceding financial year. This General
Financial Statement which is called the Combined Finance and Revenue Accounts of the
Central and State Governments in India presents the transactions of all the Governments
side by side classified under the several major and minor heads of accounts classification,
thus incidentally enabling a comparison to be made for statistical or their purpose of the
receipts and expenditure of the several Governments pertaining to each branch of
administration of to activities of a similar nature.
[Substituted by G.O. Ms. No. 187, Fin. & Plg., Dt. 25-7-1987]

[See also Chapter 21 of Volume IV of the Comptroller & Auditor-General’s Account

Code].

Proforma Accounts

Article 19. The operations of some departments of Government some times

include undertakings of a commercial or a quasi-commercial character, e.g., an industrial
factory or a store. Even though these may be maintained almost entirely for the benefit of
the departments, it is still necessary that the financial results of the undertaking should be
expressed in the normal commercial form so that the cost of the service or undertaking
may be accurately known. This implies the maintenance of suitable Capital, Manufac-
Art. 17] General Outlines of the System of Accounts 35

turing, Trading and Profit and Loss accounts and as the Government system of accounts,
being on a purely cash basis, is unsuitable for such commercial accounts, these are
usually kept on a proforma basis outside the general accounts of Government. The actual
transactions entering these proforma accounts except those adjusted on a liability basis
find a place primarily in the regular accounts and the commercial accounts are additional
as well as separate. These proforma accounts are maintained by the departmental
authorities themselves in such form as may be agreed upon between the Comptroller and
Auditor-General and the Government concerned.

Certain proforma accounts relating to Irrigation, Navigation, Embankments and

Drainage Projects and Government Residential Buildings are required to be prepared by
Civil Account Officers. Proforma accounts are also sometimes required to be prepared
for transactions which do not relate to commercial or quasi-commercial undertakings of
Government, e.g., transactions of the Famine Relief Fund. The form in which any
proforma accounts are prepared in account offices is determined by the Comptroller and
Auditor- General in consultation with the Government concerned.

Local Ruling under Article 19

In the State of Andhra Pradesh Proforma accounts (i.e., manufacturing, trading, profit and
loss, etc.), accounts are maintained outside the regular Government accounts for the
following concerns :—

1. Industrial Trust Fund.

3. Electricity Schemes.
4. Fish-curing yards.
5. Public Works Workshops.
6. Transactions relating to Government steamers plying in Godavari and Krishna canals.
7. Fruit preservation Factory, Anantarajapeta, Cuddapah District.

Journal and Ledger

Article 20. The accounts of Government are based in the main on the single entry
system and the double entry system is applied only in regard to the maintenance of a set
of technical accounts called the Journal and Ledger. The main purpose of the Journal and
Ledger is to bring out by a scientific method the balances of accounts in regard to which
Government acts as a banker or remitter or borrower or lender. Though such balances are
worked out in the regular Government accounts, their accuracy can be guaranteed only by
a periodical verification with the balance brought out in the double envy accounts. State
Accountants-General maintain separate Journals and Ledgers for transactions of the
Central Government and of the State Government. The Comptroller and Auditor-General
also maintains a Journal and Ledger for Central Transactions which is posted from the
final accounts of each year received from all Account Officers in India.
Art. 17] General Outlines of the System of Accounts 36

CHAPTER 3
GENERAL PRINCIPLES AND METHODS OF ACCOUNTS

GENERAL

Period of Accounts

Article 21. The annual accounts of the Central, State and Union Territory
Governments which the Comptroller and Auditor-General is required to render shall
record transactions which take place during a financial year running from the 1st April to
31st March. Similarly the annual General Financial Statement (the Combined Finance
and Revenue Accounts of the Central Asia State Governments in India) which the
Comptroller and Auditor-General prepares shall record the transactions of the Central,
State and Union Territory Governments for the same period.

Note :—The Government accounts of a year may be kept open for a certain period
in the following year for completion of the various accounting processes inter alia in
respect of the transactions of March, for the carrying out of certain interdepartmental
adjustments, and for the closing of the accounts of several Provident Funds and Suspense
heads. Adjustments may also be made after the close of the year owing to mispostings
and misclassifications coming to notice after the 31St March. An actual transaction
taking place after 31st March should not however be treated as pertaining to the previous
financial year even though the accounts for that year may be open for the purposes
mentioned above.

Cash basis of Accounts

Article 22. With the exception of such book adjustments as may be authorized by
any rules included in this Code or by any general or special order issued by Government
after consultation with the Comptroller and Auditor-General, the transactions in Govt.
accounts shall represent the actual cash receipts and disbursements during a financial year
as distinguished from amounts due to or by Government during the same period.

Currency in which Accounts are kept

Article 23. The accounts of Government kept in India shall be maintained in

Indian currency. With the exception of transactions representing certain genuine sterling
assets and liabilities of the Central Government, all transactions of the Central and State
Governments taking place in the United Kingdom shall be passed on monthly to India
through the Account Cm-rent between England and India and brought to account finally
in the Indian books after they have been converted into Indian Currency according to the
procedure prescribed in Chapters 16 and 17 Volume IV of Central Account Code.
Transactions of a genuine sterling character, e.g., those of the Central Government under
certain Debt, Deposits, Advances, Suspense and Remittance heads the balances of which
are kept in sterling shall be accounted for finally in the books of the High Commissioner
for India in London. In the Annual Finance Accounts of the Central Government these
transactions shall be combined with the connected Indian transactions and exhibited in
rupees, whereas in the Combined Finance and Revenue Accounts of the Central and State
Governments they shall be shown both in rupees and in sterling.
24 THE ANDHRA PRADESH ACCOUNTS CODE

FORM OF ACCOUNTS
Main Divisions of Accounts

Article 24. The Govt. Accounts shall be kept in the following three parts :—

Part I Consolidated Fund of India or of the State/Union Territory concerned.

Part II Contingency Fund of India or of the State/Union Territory concerned.
Part III Public Account of India or of the State/Union Territory concerned.
(G.O. Ms. No. 187, Fin. & Plg. (Accts. II) Dept., Dt. 25-7-1987)
In Part I of the Account, there shall be two main divisions, namely:-

(1) Revenue [Consisting of Sections for ‘Receipts Heads (Revenue

Account)’ and ‘Expenditure Heads (Revenue Account)’].

(2) Capital, Public [Consisting of Sections for ‘Receipt Heads (Capital –

Debt, Loans etc., Account)’ Expenditure Heads (Capital Account)’ and
Public Debt, Loans and Advances etc.,)]

The first division shall deal with the proceeds of taxation and other receipts
classed as revenue, and the expenditure met there from. The section ‘Receipts Heads.
(Capital Account)’ in the second division shall deal with receipts of a capital nature
which cannot be applied as a set-off to Capital Expenditure.

The section ‘Expenditure Heads (Capital Account)’ in the second division shall
deal with expenditure met usually from borrowed funds with the object either of
increasing concrete assets of a material and permanent character or of reducing recurring
liabilities. It also includes receipts of a Capital nature intended to be applied as set-off to
Capital Expenditure.

The section “Public Debt” and “Loans and Advances” etc., of the Second division
shall comprise, loans raised and their repayments by Government such as Internal Debt,
External Debt to the Central Government and Loans and Advances made (and their
recoveries) by Governments. The section also includes certain special types of heads for
transactions relating to ‘Transfers from the Consolidated Fund to the Contingency Fund’
and ‘Inter State Settlement’.

In Part II of the Account, shall be recorded the transactions connected with the
Contingency Fund set up by the Government of India or of a State or Union Territory
Governments under Article 267 of the Constitution/Section 48 of the Government of
Union Territories Act, 1963.

In Part III of the Account, the transactions relating to Debt (other than those
included in Part I). ‘Deposits’, ‘Advances’, ‘Remittances’ and ‘Suspenses’ shall be
recorded. The transactions under ‘Debt, Deposit and Advances’ in this part are such in
respect of which Government incurs a liability to repay the moneys received or has a
claim to recover the amounts paid, together with the repayments of the former (Debt and
Deposits) and the recoveries of the latter (Advances). The transactions relating to
‘Remittances’ and ‘Suspense’ in this part shall embrace all merely adjusting heads under
which shall appear such transactions as remittances of cash between treasuries and
currency chests, accounts between different accounting circles, etc., The initial debits or
25 THE ANDHRA PRADESH ACCOUNTS CODE

credits to these heads will be cleared eventually by corresponding receipts or payments

either within the same circle of account or in another account circle.

Article 25. (a) Within each of the divisions/sections mentioned in the preceding
Articles the transactions shall be grouped into sectors such as “General Services”, “Social
and Community Services”, “Economic Services” etc., under which specific functions and
services are grouped. The Sectors are sub-divided into Major Heads of Account. In some
cases the Sectors are, in addition, sub-divided into sub-sectors before division into Major
Heads of Account. The Sectors shall be distinguished by a series of letters of the
Alphabet separately for the ‘Revenue Receipts Section’, the ‘Revenue Expenditure
Section’ and for the Sectors included in the remaining Sections/Divisions.

(b) Each Major Head is allotted a code number which consists of a three digit
Arabic number code. The first digit indicates whether a particular Major Head pertains to
the Revenue Receipts Section/Revenue Expenditure Section/Capital Receipts Sections!
Capital Expenditure Section Public Debt and Loans and Advances etc., Section, or to the
Public Account. The next two digits indicate the Major Heads. The digits indicating the
Major Heads would remain the same for the Major Head denoting the same function
occurring in the several sections included in the Consolidated Fund.

(c) Under this scheme of codification the ‘Receipt Major Heads’ are assigned the
block of consecutive serial numbers 020 to 199, and ‘Expenditure major heads on
Revenue Account’ from 211 to 399. The only Capital receipt major head has been
assigned the Code No. 400. ‘Expenditure major heads on Capital Account’ are assigned
the Code Numbers from 411 to 599, while major heads under ‘Public Debt’ are assigned
the Code numbers from 601 to 610. The Major Heads under “Loans or Advances”,
“Inter-State Settlement” and ‘Transfers to the Contingency Fund’ are assigned the Code
numbers from 611 to 799. The only major head ‘Contingency Fund’ in Part II -
Contingency Fund is assigned the Code Number 800. The major heads in the Public
Account are assigned the Code numbers from 801 to 899. The significance and the mode
of operation of this scheme of codification would be clear from the following examples,
taking the major heads for the functions ‘Medical’ in the Section ‘Social and Community
Services’ and “Agriculture” in the sector “Economic Services” These major heads will
have the Code number as indicated below :-

Major Head Major Head Capital Major

Receipts Expenditure Loan Major
(Rev.Account (Rev.Account) Head Head
Capital
Loans for
080 Medical 280 Medical 480 Outlay on 680
Medical
Medical
Capital
Loans for
105 Agriculture 305 Agriculture 505 Outlay on 705
Agriculture
Agriculture

From these examples it will be clear that the Code numbers relating to a Major Head in
respect of the same function falling under the four sections mentioned above, which are
arranged consecutively, differ from one another by 200 in the ascending order. This is to
ensure easy correlations of the receipts/expenditure relating to the same function
occurring in these four sections.
40 THE ANDHRA PRADESH ACCOUNTS CODE

(d) As exceptions to this general principle assigning Code numbers there are a
few cases of Major Heads for the same function which are not existing in all the four
sections. In other words Major Heads of the same description would appear only in the
relevant Sections.

The various Sections/Sectors/Sub-Sectors, classified under the different divisions

shall be as given in Annexure A to this chapter.

Article 26. (a) The main unit of classification in accounts shall be the major head
which shall be divided into minor heads, each of which shall have a number of
subordinate heads, generally known as sub-heads. The sub-heads are further divided into
‘detailed’ heads. Some times major heads are also divided into ‘sub-major heads’ before
their further division into minor heads.

The Sectors, Major Heads, Minor Heads, Sub-heads and Detailed Heads together
constitute a five-tier arrangement of the classification structure of Government Accounts.

The detailed classification of account heads in Government Accounts upto the

stage of the minor heads (the third tier) shall be such as given in the ‘List of Major and
Minor Heads of Account of Central and States’‘Receipts and Disbursements’ - Appendix
2 to Account Code Vol. I. In all accounts records the Major and Minor Heads shall be
arranged in the exact order shown in the list of Major and Minor Heads of account. The
classification prescribed (including the Code Number assigned upto the Major Heads)
should strictly be followed. Complete uniformity including nomenclature is essential in
classification upto the stage of the minor head.

(b) The major heads of account falling within the sectors and sections “Revenue
receipts”“Expenditure met from Revenue”“Capital expenditure” and “Public Debt”.
“Loans and advances” etc., in the “Consolidated Fund” generally correspond to
“functions” of Governments, such as the different services like “agriculture”, “Defence”
etc., provided by Government, while the minor heads subordinate to them identify the
“Programmes” undertaken to achieve the objectives of the function represented by the
major head. A programme may consist of a number of schemes or activities and these
generally, correspond to “Sub-heads” (the fourth tier of classification) below the minor
and represented by the programmes. In certain cases, especially in regard to non-
developmental expenditure of an administrative nature, the sub-heads denote the
components of a programme, such as “organizations” or the different “wings of
administration”. A schemes, activities or organizations under various programmes differ
from State to State and Centre, a uniform classification by “Sub-heads” for all the
Governments has not been prescribed. The Central and State Governments, and the
Accountants-General may determine the sub-heads below the minor head, to meet the
local or special requirements of each Government. In determining the sub-heads, the
following guiding principles should be observed:

(i) Homogeneous Scheme under a programme, especially those involving small

outlays should be grouped into suitable sub-heads.

(ii) The Sub-heads should not be multiplied unnecessarily. New ones are to be
opened only when necessary.

(iii) In certain cases the grounds for opening specific sub-heads below the minor
heads have been indicated in the “General Directions” to the “List of Major and
40 THE ANDHRA PRADESH ACCOUNTS CODE

Minor Heads of Accounts” and in the various “Notes” below the major heads in the list.
These directions should be followed wherever necessary.

(c) A “detailed head”, which constitutes the fifth and the last tier of classification
in Government accounts, is termed as an object classification. On the expenditure side of
the accounts, particularly in respect of the heads of account within the Consolidated Fund
the detailed heads, are primarily meant for itemized control over expenditure and indicate
the nature of expenditure on a scheme or activity or organization in terms of inputs such
as ‘salaries’, ‘office expenses’, ‘grant in-aid’, ‘Loans’, ‘investments’ etc. They also
constitute the primary units of appropriation for the purpose of the Demands for Grants of
Governments. A list of “Standard detailed heads’ comprising the common items of
expenditure in the activities of Government which can be uniformly adopted by all the
Government - Central, State or Union Territories - is given in Annexure ‘B’ to this
Chapter. The detailed heads shown in this list may be adopted by all the Governments,
and such additional detailed heads as may be found necessary to cover the specific types
of expenditure in certain departments, may also be opened. Care should however be taken
to ensure that detailed heads are not proliferated unnecessarily.

Major, Minor and Detailed heads

Article 27. The introduction of any new major head or minor head, as well as the
abolition or change of nomenclature of any of the existing heads, shall require the
approval of the Comptroller and Auditor-General who will obtain the approval of the
President where necessary. The Accountants-General shall have discretion to open all the
prescribed detailed heads and to open any new detailed head where absolutely necessary,
bearing in mind the principles enunciated in Article 26(c) above. In addition, the
following principles should be observed.

(a) A sub-head or a detailed head which is placed under a particular minor head
by the Comptroller and Auditor-General either through directions in the List of Major
and Minor Heads or elsewhere should not be placed under another minor head.

(b) The sub-heads subordinate to a minor head of expenditure should be so

arranged in accounts as to exhibit separately the expenditure under each unit of
appropriation as prescribed from time to time by Government.

Classification of Expenditure as “Charged” or as “Voted”

Article 28. Expenditure which under the provisions of the Constitution is subject
to the vote of the Legislature shall be shown in the accounts separately from expenditure
which is “Charged” on the Consolidated Fund of India or of a State, Union Territory. The
expression “charged” or “voted” shall be appended to the heads concerned to distinguish
the two categories of expenditure.

CLASSIFICATION OF TRANSACTIONS IN A CCOUNTS

General Limitations

Article 29. Under Article 150 of the Constitution the accounts of the Union and
of the States shall be kept in such form as the Comptroller and Auditor-General may with
the approval of the President prescribe. The word “Form” used in Article 150 has a
comprehensive meaning so as to include the prescription not only for the broad form in
which the accounts are to be kept but also the appropriate heads under which certain
transactions or classes of transactions have to be entered. Accordingly the Comptroller
Art.
40 30-A] General Principles
THE ANDHRA and Methods
PRADESH of Accounts
ACCOUNTS CODE 41

and Auditor-General with the approval of the President, is the authority to determine the
classification of any transaction or class of transactions in Government accounts.

Provision made in the estimates of receipts and expenditure framed by

Government or in any other appropriation should ordinarily conform to the rules of
classification prescribed in this Code. Where there is divergence the corresponding
receipt or expenditure shall be brought to account under the appropriate Major or Minor
Head or other unit of classification as determined by the Comptroller and Auditor-
General with the approval of the President.

General Principles of Classification

Article 30. As a general rule, the classification of transactions in Government

accounts, shall have closer reference ‘to the function, programme and activity of the
Government and the object to the revenue or expenditure, rather than the department in
which the revenue or expenditure occurs. For example, expenditure incurred by the
Public Works Department on the construction of a Hospital shall be debited as
expenditure under the major head “280 Medical” or “480. Capital Outlay on Medical” as
the case may be, and not to the major head for “Public Works”. This principle is
however, subject to such exceptions as may be authorized specially in any individual case
or a class of cases e.g., receipts representing ‘Interest’ are shown under “049. Interest
Receipts” and expenditure on other maintenance and Repairs of Non-residential
Buildings under the administrative control of the P.W,D. are shown under the Major head
“259. Public Works” irrespective of the functions to which they relate.

General Principles of Expenditure Between Capital and Revenue

Article 30-A. The guiding principles of allocation of expenditure between Capital

and Revenue are as under :—

(1) Expenditure of a capital nature shall broadly be defined as expenditure

incurred with the object of either increasing concrete assets of a material and permanent
character or of extinguishing or reducing recurring liabilities.

(2) It is inherent in the definition of capital expenditure that the assets produced
should belong to the authority incurring the expenditure. Expenditure by Govt. on Grants-
in-aid to local bodies or institutions cannot legitimately be considered as capital
expenditure.

(3) Expenditure on a temporary asset cannot ordinarily be considered as

expenditure of a capital nature.

(4) Expenditure of a capital nature shall he distinguished from Revenue

expenditure both in the Budget Estimates and in Government accounts, subject to the
principles laid down in Article 43.

(5) Capital should bear all charges for the first construction and equipment of a
project as well as charges for intermediate maintenance of the work while not yet opened
for service. It should also bear charges for such further additions and improvements as
II may be sanctioned under rules made by competent authority.

(6) Subject to (7) below, revenue should bear all subsequent charges for
maintenance and all working expenses. These embrace all expenditure on the working
and upkeep of the project and also on such renewals and replacements and such
additions, improvement of extensions as under rules made by Government are debitable
to the revenue account.
Art. 33] General Principles and Methods of Accounts 42

(7) In the case of works of renewal and replacement which partake both of a
capital and revenue nature, the allocation of expenditure should be regulated by the broad
principle that Revenue should pay or provide a fund for the adequate replacement of all
wastage or depreciation of property originally provided out of capital grants and that only
the cost of genuine improvements, whether determined by prescribed rules or formula or
under special orders of Government may debited to Capital.

IMPORTANT GENERAL ORDERS GOVERNING CLASSIFICATION

Pay and Allowances (Other than Travelling Allowances)

of Government Servants

Article 31. (1) Following the principles in Article 30, the Pay and Allowances of
Government servants shall be classified in accounts as part of the scheme, activity or
organizations (sub-head) under a programme (Minor Head) below a function
(major/submajor head) to which the service of the Government servant closely relate.
Where however, it is not possible to classify ab initio the pay and allowances of
Government servant or servants under a single sub-head, because of the overlapping
nature of the duties of such Government servants which extend to several activities,
programmes, functions etc., the charges may be classified initially as part of the scheme
or activity or organization which the major portion of the work of the Government
servants relate. A suitable pro-rata allocation of such expenditure should however be
made in all such cases as far as possible.

(2) The transit pay and allowances of a Government Servant proceeding to join an
office whether on first appointment or on transfer, either permanently or as temporary
measure, or on reversion from one department to another, should, in the absence of
special orders to contrary be debited to the office to which he is proceeding.

Note 1. The transit pay and allowances both ways, of officers of the Defence or
Railway Department lent to Civil Departments or vice versa, are debitable to the
borrowing Department. This principle shall apply even in cases where the Government
servant takes leave either before joining the borrowing Department or before rejoining
the lending Department and shall hold good in respect of joining time admissible under
the Service Rules applicable to him. Cases of permanent transfers between the Civil and
the Defence or Railway Departments shall, however, be governed by the substantive rule
in clause (2) above.

For purposes of this note, officers of the Indian Medical Service in civil
employment should be regarded in all cases as lent to the Civil Department.

Note 2. The transit pay and allowances, both ways, of a Government servant
transferred from one Government, to another or to foreign service will be adjusted in
such manner as may e mutually agreed upon by the Government concerned or as may be
laid down in the appropriate Service Rules. See also Section 1 in Appendix 3.

Note 3. The transit pay and allowances both in respect of the forward and the
return journeys of Government servants transferred to or from Mission and offices abroad
will be borne by the Ministry which plans the transfer of the official. However, the transit
pay and allowances of the officers belonging to Indian Foreign Service (A) and Indian
Foreign Service (B) in respect of their return journey from abroad shall be debited to the
budget grant of the Ministry of External Affairs or the Ministry of Commerce and
Industry, where the official reports for duty.
Art. 33] General Principles and Methods of Accounts 43

Travelling Expenses

Article 32. Travelling allowances of Government Servants shall be debited in

accounts, as part of the scheme/activity or organization, under a programme or function
of Government in connection with which the expenditure on the travel on duty of the
Government servant is closely connected. The principle is however, subject to such
exceptions as may be specially authorized in this behalf by the Government in
consultation with the Comptroller and Auditor-General.

Expenditure on Public Works

Article 33. Expenditure on Public Works where the works are under the
administrative control of the P.W.D. shall be classified in accounts, according to the
following principles —

(i) Expenditure on the construction of Government non-residential buildings, fur

administrative and office purposes “and other buildings which exclusively relate to
functions under General Services” as distinct from that of the construction of buildings
for functional purposes like Schools, Colleges, Hospitals, etc., will be accounted for
under the major head “259. Public Works” or “459. Capital Outlay on Public Works” as
the case may be;

(ii) Expenditure on the construction of buildings for purely functional purposes,

such as those for Schools, Colleges, Hospitals, etc., will be accounted for under the
relevant major heads closely connected with the functions, such as “277. Education/477.
Capital Outlay on Education, Art and Culture” “280. Medical/480. Capital Outlay on
Medical” etc., as the case may be;

(iii) Expenditure on maintenance and repairs of all Government non-residential

buildings whether for administrative office or functional purposes - will however, be
accounted for under the major head “259. Public Works”;

(iv) Expenditure on Government residential buildings will be accounted for under

the major head “283. Housingl483. Capital Outlay on Housing” in the revenue or capital
section as the case may be, in the sector “Social and Community Services”;

(v) Expenditure on roads and bridges, being in the nature of communication

services, will be accounted for under the major head “337. Roads and Bridges/537.
Capital Outlay on Roads and Bridges” in the revenue or capital sections as the case may
be in the sub-section “Transport and Communications” of the sector “Economic
Services”.

Note 1: — Where the buildings etc., are not under the administrative control of
the P.W.D. it is open to Govt. to prescribe that expenditure on construction and repairs
upto certain monetary limits, may be incurred by the Civil departments (i.e., departments
other than the Public Works Department) concerned. In such cases, where the
expenditure can be identified with the programme (Minor Head) relating to the function
(Major Head) it should be accounted for under the detailed head “Works” below the
minor head. Where the minor head is not identifiable, it should be classified under the
residuary minor head “Other expenditure” of the relevant major head.

Note 2 :—Expenditure on the staff-quarters (construction as well as maintenance)

forming part of a scheme or project such as those of Doctors or Nurses in a Hospital, will
normally he accounted for as expenditure of the programme under the relevant functional
Major head (‘Medical’ in the example cited above) and not under the Major head
‘Housing’. If however Government
Art. 33] General Principles and Methods of Accounts 44

finds it difficult for administrative reasons, to follow this principle, in the case of
maintenance expenditure, the expenditure on maintenance may be debited to “259. Public
Works”. As a corollary, the rent receipts will go to “083 Housing” in such cases.

Contributions made by or to Government

Article 34. (a) Contributions made by the Central or the State Governments to
Zilla Parishads, Municipalities, etc., or vice versa shall be debited as expenditure or
shown as receipts (as the case may be) under the head of account most closely connected
with the object for which the contributions are made. Thus, a grant for the construction of
a school shall be debited to “277. Education” grant for construction of a drainage system
to “282. Public Health. Sanitation and Water Supply” and a grant for the constructions of
a road to “337. Roads and Bridges” and a grant given for general purposes. such as a
grant to make good a deficit or as compensation for revenue resumed, shall be classified
under “284. Urban Development” and “363. Compensation and assignments to Local
Bodies and Panchayati Raj Institutions” respectively.

Note 1: —If the financial assistance given by the Central or State Government to
a local body does not take the form of a grant of cash, but of expenditure in the Public
Works Department equivalent to the whole or a part of the cost of a work constructed by
that department on behalf of the local body concerned, the contribution thus made should
be debited as expenditure under the detailed head ‘Contribution’ below the relevant
minor/major head corresponding to the programme/function closely connected with the
object of the assistance.

Note 2 :—Contribution paid by a local body or private party with the express
object of meeting the whole or a part of the cost of construction by the Public Works
Department of a specific work which is eventually to be the property of Government
should be credited as revenue receipts of the Government relevant to the
function/programme closely connected with the object for which the contribution is
made.

(b) Article 282 of the Constitution provides that the Union or a State may make
any grants for any public purpose, notwithstanding that the purpose is not one with
respect to which Parliament or the Legislature of the State, as the case may be, may make
laws. The word ‘grit’ used here should be taken to mean not merely ‘grant-in-aid’ but
also other direct expenditure.

Refunds of Revenue

Article 35. Refunds of revenue, shall as a general rule be taken in reduction of the
revenue receipts. In so far as the sector “A. Tax Revenue” is concerned the refunds shall
be accounted for under a distinct sub-head below the relevant minor heads under the
major/sub-major heads in that sector, so that the net collection of each tax/duty
(accounted for under the minor heads) can be readily ascertained from the accounts.

The refunds of revenue relating to the sectors “B. Non-tax Revenue” and “C.
Grants-in-aid and contributions” may be accounted for under a separate minor head
“Deduct-Refunds” under the major/sub-major heads falling in these sectors, in case it is
not practicable to exhibit such refunds as sub-heads below the programme minor heads
themselves.

Classification of Transactions under “Civil Advances”

Article 36. (a) Moneys advanced for miscellaneous purposes under special
authority and recoverable in cash and sums overpaid on vouchers other than those for
Art. 33] General Principles and Methods of Accounts 45

service payments shall be adjusted under the head ‘850. Civil Advances’. Payments made
on account of Government expenditure should not be held under “Civil Advances” on the
ground that further proceedings in audit are necessary for their final admission. This head
shall cover items which are from their inception debts due to Government recoverable
either in cash or by deduction from Pay and Allowances. Pay and Allowances of any kind
in respect of an assignable period paid before they are due shall be debited to the same
head as and when paid after they are due.

(b) (i) Advances of Pay and Travelling Allowance on transfer should be debited to
the final head of account and not to “Civil Advances” subject to (ii) below. The debit
should be borne by department which makes the advances. The recovery of Pay and
Travelling Allowance advances on transfer, will, irrespective of the year of recovery, be
treated as minus expenditure. The recoveries will be accounted for under the head of
account to which the expenditure of the department to which the Government servant is
transferred is debited.

(ii) However, in the case of transfer of a Government servant from one

Government to another or within the Central Government to or from the Railways/Posts
and Telegraphs/Defence Departments, the debit representing the advance of
Pay/Travelling Allowance on transfer will be dealt with as per the principles indicated
below:—

(a) In the case of a transfer from a lending Government/Department to

a borrowing Government/Department the debit will be passed on to the borrowing
Government/Department for adjustment to the appropriate final head of account in the
books of the borrowing Government/Department, and recoveries of such advances
affected in that Government/Department will be adjusted as minus expenditure.

(b) In the case of re-transfer of the Government servant to the lending

Government/Department, the debit on account of “Advance of Pay” may be passed on by
the borrowing Government/Department to the lending Government/Department while the
debit on account of “Advance of Travelling Allowance” should be finally adjusted in the
books of the borrowing Government/Department itself, since final Travelling Allowance
in which the advance is to be adjusted is to be borne by the borrowing
Government/Department in accordance with the principles of incidence of such changes
laid down in Appendix 3-B- 1 (ii) of Central Account Code.

(c) Advances for law suits shall be debited to the functional

expenditure head concerned. Refunds of amounts remaining unspent out of these
advances shall be dealt with as cash recoveries; and adjusted in accounts, in accordance
with the provisions in Article 22 of Vol. IV of Central Account Code.

Article 22 of the Comptroller and Auditor-General’s account Code, Volume IV:

22. The recoveries of overpayments shall be posted direct under the receipt or
service head concerned in the Compilation Book in the following manner:

(a) Recoveries relating to overpayments of the current year—

The recoveries whether made in cash or from payment vouchers shall be taken as
a reduction of expenditure by posting these as minus expenditure in the Compilation
Book itself under the head previously overcharged, and
Art. 33] General Principles and Methods of Accounts 46

(b) Recoveries relating to overpayments of a previous year—

There shall be credited to the departmental receipt head concerned as receipt of

the department or in the case of Departments not having corresponding receipt head to
the major head “65 - other Administrative Services” direct if made in cash or through part
(3) of the Abstract (like deductions on account of General Provident Fund etc.) if made
from payment vouchers.
(G.O. Ms. No. 187, Fin. & Plg. Dt. 25-7-1987)

In cases where full particulars are not available to determine the correct
classification, for the purpose of direct postings, the items shall, in the first instance, be
classified under a suitable detailed head e.g., Objection Book Suspense-Receipt’ under
the minor head “Suspense Account” Civil below the major head “Suspense Accounts” in
the Deposit Section of the Accounts. This suspense head shall be cleared on receipt of the
necessary particulars.

Note :—If a recovery representing an over payment of the current year is made by
short payment of an item debitable to the same detailed head, no separate adjustment is
necessary.

Classification of Transactions under “Suspense”

Article 37. Items of receipts and payments which cannot at once be taken to a
final head of receipt or charge owing to lack of information as to their nature or for any
other reason may be held temporarily under the head “858. Suspense Account” in the
sector “Deposit section” of the accounts. A service receipt of which fill particulars are not
given must not be taken to the head “Suspense Account” but should be credited to the
minor head “Other Receipts” under the revenue head to which it appears to belong
pending eventual transfer to the credit of a proper head on receipt of detailed particulars.
The charges under the head “Suspense Account” will consist not only of items for which
full particulars have not been given which will enable the Audit Office properly classify
them, but also charges written back on disallowance from Exchange Accounts or charges
disallowed from the Inward Settlement Account, which are not susceptible of final
adjustment against some other head. If, however, the only point of doubt in respect of any
charge is whether it should be treated as Central Charge or as pertaining to a State, it
should not be debited to “Suspense” but should be taken to a proper service head of
account, and shown as appertaining to the Government which actually incurred the
expenditure pending final decision of the question of which Government should bear the
charge.
(G.O. Ms. No. 187, Fin. & Plg., Dt. 25-7-1987)

Note :—No sums shall ordinarily be credited to Government by debit to suspense

head; credit must follow and not precede actual realization.

Exchange in Respect of Transactions in England and the Mission Abroad

Article 37-A. Net gain or loss by exchange in respect of Government transactions

taking place in U.K. and in the Embassies and Missions abroad shall be uniformly
adjusted in the books of the Central Government under the head “068/268 Miscellaneous
General Services - Gain/Loss by exchange.”
Art. 33] General Principles and Methods of Accounts 47

IMPORTANT SPECIAL ORDERS GOVERNING CLASSIFICATION OF

CERTAIN INDIVIDUAL TRANSACTIONS

Cost of acquisition of land

Article 38. Cost of land acquired for any specific work or a project shall be
recorded as part of the cost of the works or of the project under the relevant functional
major/minor head. The expenditure on acquisition of land by the Public Works
Department for general purposes shall be recorded under the head “259. Public Works
Other Expenditurel459. Capital Outlay on Public Works - Acquisition of Lands” as the
case may be.

Sale-proceeds of Government Land and Buildings

Article 39. The classification of the sale-proceeds of Government land and

buildings shall be regulated in accordance with schedules given below

SCHEDULE I
Sale-proceeds of land, etc.

Heads to which creditable

(1) (2)
(i) When the cost of the land was originally The Capital or Revenue account
debited to, or remains at the debit of, the of the project, as the case may
Capital account of any project or be, according to the allocation
undertaking for which regular Capital rules applicable to the Dept.
and Revenue accounts are kept or was concerned.
originally met from the revenue account
of such PROJECTS or undertaking.

In the case of land acquired by Government on payment of companies

Railway, or of Government land made over to such Railways by other Government
Departments or Railways, where the cost was originally debited to “350-Subsidised
Companies-Land” the sale proceeds are creditable to “150-Subsidised Companies”
on the receipts side.

(ii) When the cost was originally debited to a The Capital expenditure head,
Capital expenditure head outside the originally debited.
Revenue Accounts, even though no
regular Capital and Revenue accounts arc’
kept for the work covered by the Capital
expenditure.

(iii) When the cost was originally debited, The receipt head relating to the
within the Revenue Section of accounts, Department concerned, or in the
to any service or revenue department for case of department not having
which no Capital and Revenue accounts corresponding receipt head “068
are kept. Miscellaneous General Services
- Sale of land and Property”.

(iv) When the cost was not so debited :—

(a) the rights of the Government in “105. Agriculture - Other
agricultural land not covered by clause receipts”.
(b) ;
Art. 33] General Principles and Methods of Accounts 48

(1) (2)
(b) Nazul lands in the Uttar Pradesh, the “068. Miscellaneous General
Punjab and the Madhya Pradesh or Service - Sale of Land and
elsewhere the lands in the Punjab Property”.
equipped at the cost of State revenues
for resale for building purposes:
(c) In all other cases :—
(i) If sold in the Public Works The functional receipt major head
Department: concerned or the head “059-Public
Works”.
(ii) If sold in the Defence Department: The major heads “069-Defence
Services Army” 070-Defence
Services - Navy or “071 - Defence
Service - Air Force” as the case
may be.
(iii) If sold by the Civil agency: The functional receipt major head
concerned or “068 - Miscellaneous
General Services”.

SCHEDULE II
Sale-proceeds of buildings (including the actual area occupied by or auxiliary to a
building)

Heads to which creditable

(1) (2)
(i) When the cost of the building was originally The Capital or Revenue account of
debited to, or remains at the debit of, the the project, as the case may be,
Capital Account of a project or undertaking according to the allocation rules
for which regular Capital and Revenue applicable to the Department
Accounts are kept or was originally met concerned.
from the Revenue account of such project or
undertaking.
(ii) When the cost of the building was originally The Capital expenditure head
debited to a Capital expenditure head out originally debited.
side the Revenue account, even though no
regular Capital & Revenue Accounts are
kept for the work covered by the Capital
expenditure.
(iii) When the sale affects Irrigation, Navigation, “1 33. Irrigation, Navigation,
Embankment and Drainage works for which Drainage and Flood control Projects
Capital Accounts are not kept. - B. Irrigation Projects (Non-
Commercial) or D. Navigation
Projects (Non-Commercial) or F.
Drainage Projects (Non-
Commercial) or G. Flood Control
and Anti-sea Erosion Projects”, as
the case may be.
Art. 33] General Principles and Methods of Accounts 49

Heads to which creditable

(1) (2)
(iv) When the sale is of building the cost of which “The receipt head relating to the
was originally debited, within the revenue function to which the cost of the
section of the accounts, to any service or building was initially debited or in
revenue department for which no capital and cases where there is no corresponding
revenue accounts are kept. receipt head, to the head “068 -
Miscellaneous General Services - Sale
of land and property”.
(v) In all other cases:
(i) If sold n the Public Works Department. The functional receipt major head
concerned or the head 059-Public
Works”.
(ii) If sold in the Defence Dept. The major heads “069-Defence
Services - Army” - “070-Defence
Services - Navy” or “071-Defence
Services - Air Force” as the case may
be.
(iii) If sold by civil agency. The functional receipt major head
concerned or “068-Miscellaneous
General Services”.

Municipal rates and taxes

Article 40. Municipal rates and taxes on Government buildings shall be adjusted
as follows:-

(a) As a general rule, municipal rates and taxes on a non-residential building

utilized for functional purposes, such as for Schools. Colleges or Hospitals, if paid by the
relevant departments dealing with those functions, would be adjusted in accounts as part
of the sub-heads/minor heads concerned relating to the function, under the detailed head
“Rent, Rates and Taxes”. Where however, the whole or a part of the tax is paid by the
Public Works Department in administrative control of the building, the payments may be
debited to the maintenance estimates of the building concerned viz., “259. Public Works-
Maintenance and Repairs in terms of Article 33 (iii).

(b) Taxes on non-residential buildings occupied by Department other than the

Defence Department, if paid by a department nominated by Government in this behalf
and not passed on to the occupying departments shall be debited to “265. Other
Administrative Services - Other expenditure”.

(c) Taxes on residential buildings, if payable Government shall be debited to the

maintenance estimates of the buildings under the head “283. Housing - C - Government
Residential Buildings - Maintenance and Repairs or “259. Public Works”, in case the
Government has decided to debit maintenance expenditure to this head’.

Note :—In cases where the whole or any portion of the taxes which by local rule
or custom are ordinarily leviable from the tenant, is paid by a department of the
Government such payments are treated as part of the Contingent expenditure of the
department.

(d) Taxes both on residential or non-residential buildings owned/or occupied by

the defence department shall be debited to the Defence Services Estimates.

Cost of Survey of India and other Scientific Parties accompanying

a military expedition

Article 41. The cost of Survey of India and other scientific parties which may
accompany a military expedition shall be adjusted as follows:—

[A. Code 4]
Art. 33] General Principles and Methods of Accounts 50

(i) All extra expenditure connected with Survey of India unit which would not
have been incurred but for field operations shall be borne by the Defence Estimates,
provided the Survey of India unit accompanied the expedition at the request of the
Defence Department.

(ii) The cost of the pay, allowances, and contingencies of other scientific parties
shall be borne by the respective Civil Departments concerned, while the expenditure
incurred on special transport arrangements made by the Defence Services shall be debited
to the Defence Estimates.

These rules shall not, however, apply to the classification of the cost of units of
the Survey of India or of other scientific parties mobilized for service with the Army on
general mobilization. The whole cost of these units except (in the case of the Survey of
India) that of the initial supply of all technical equipment material and stores; shall be
debited to the Defence Estimates under Special Rules.

LOCAL RULING
Cost of Management of Andhra Pradesh Government Life Insurance Fund

The cost on account of the pay and allowances of the officers and the staff and
Class IV employees of the Andhra Pradesh Government Life Insurance Department and
other charges representing management expenses, which are initially debited to the
Government account under “M,H. 288-Social Security and Welfare - E. Other Social
Security and Welfare Programmes - 05-Insurance Schemes - S.H. (01) Andhra Pradesh
Government Life Insurance Department” shall finally be transferred at the end of each
financial year to the Fund Accounts under M.H. 811 - Insurance and Pension Funds - 05.
State Government Insurance Fund - S,H. (01) Andhra Pradesh State Life Insurance
Fund”.
(Memo No. 92383/ Fin. (Accts) Dept. 66-3, Dt. 5-1-1968)

GENERAL METHODS OF ACCOUNTING

Accounting for transactions Pertaining to more than one major head of account

Article 42. For the sake of convenience or for other special reasons, receipts or
charges pertaining to more than one head of account may be booked in the first instance
under one of the head concerned, but the portion creditable to the other head or heads
involved should be transferred from the former head to the latter before the accounts of
the year are closed. A few cases in which this procedure is authorized are cited below :—

(1) Where the charges for the supply of water from Irrigation canals are
consolidated with the Land Revenue demand the consolidated rates are in the first
instance credited to the head “029. Land Revenue” and an approximate amount
calculated as the share due to Irrigation is transferred to Irrigation Revenue head.

(2) Charges for collection of corporation tax are accounted for under the head
“220 - Collection of Taxes on Income and Expenditure - Collection Charges - Income
Tax” in the first instance, the amount debitable to the head “Collection Charges -
Corporation Tax” being transferred latter from the former head to the latter.

(3) Interest paid by Government on loans is taken initially under the head “249
- Interest Payments” and necessary transfers from this head are made subsequently in
Art. 33] General Principles and Methods of Accounts 51

respect of amounts debitable to Commercial Departments, by credit to “049 Interest

Receipts”.

(4) The Establishment and Tools and Plant charges of Public Works Division are
in the first place booked under a single major head subject to final apportionment among
the several major heads concerned.

(5) The charges relating to the audit of the transactions of the Posts and
Telegraphs, Railways and the Salt Organization of the Ministry of Commerce and
Industry, are recorded initially under the head “216 - Audit” and are transferred
subsequently to the accounts of the respective departments.

Record of Capital Expenditure in accounts

Article 43. The following principles shall govern the record of capital expenditure
in accounts:

(i) The Central Government and the State Governments should prescribe definite
criteria for classifying an item of expenditure as pertaining to ‘Revenue’ or ‘Capital’
taking into account the nature and the magnitude of the expenditure involved. The source
of financing (whether revenue budget or capital budget) should follow this classification.

ii) All items of expenditure to be met from revenue according to the criteria
indicated in (i) above should be initially and finally debited to ‘Revenue’ and it is not
permissible to debit such expenditure temporarily to a capital head, pending its write back
to revenue over a period of years.

(iii) The detailed rules by which allocation of expenditure between Capital and
Revenue in commercial departments and undertakings should be determined, shall be
such as may be made by Government, after consultation with the Comptroller and
Auditor-General.

Accounting for transactions relating to Scheduled Areas

Article 44. Receipts and expenditure pertaining to Scheduled Areas in a State,

vide Article 244 (1) of the Constitution, shall be accounted for under the same major and
minor heads under which corresponding receipts and expenditure pertaining to other
areas of the State are accounted for, but the receipts and expenditure of the former kind
may be shown in the accounts separately from the latter if Government so desires.

Article 45. [Deleted]

Accounting for losses

Article 46. Losses of Public money, stores or other property of Government shall
be accounted for in accordance with the rules in Chapter 6.

Exhibition of recoveries in Government Accounts

Article 47. The rules to regulate the exhibition of recoveries in Government

Accounts are contained in Chapter 5.

Accounts for recoveries of overpayments

Article 48. Recoveries of overpayments shall be adjusted in the accounts in

accordance with the procedure set Out in Article 22 of Volume IV of Central Account
Code.
Art. 33] General Principles and Methods of Accounts 52

Accounts of Commercial Undertakings

Article 49. Where any undertakings of Government are conducted on commercial

lines, the essential formalities of commercial accounts should, if Government so desires,
be strictly observed. In such cases separate commercial accounts of the undertakings shall
be kept outside the regular Government accounts. Gross receipts and expenditure of
commercial undertakings shall be accounted for under the appropriate major and minor
heads in the same way as ordinary receipts and expenditure of Government. The heads of
accounts, should, as far as possible, be common to the Government accounts, and the
General Ledger maintained at the undertaking and should be selected with due regard to
the principles of Governmental and commercial accounting so that the monthly classified
account of income and expenditure of the undertaking may be prepared readily from the
General Ledger maintained at the undertaking.

Working expenses of commercial departments

Article 50. As a general rule all expenditure pertaining to any department.

including commercial department, should be recorded on the expenditure side of the
account only.

Transactions with other Governments and Account Circles

Article 51: Subject to any general or special orders issued by Government after
consultation with the Comptroller and Auditor-General, the methods by which
transactions between different account circles as well as between different Governments
including Government of other countries are settled, shall be as described in relevant
Chapters of Volume IV of Central Account Code.

Rectification of misclassification

Article 52. The procedure to be followed in rectifying misclassifications in

accounts shall be as prescribed in Chapter 19 of Volume IV of Central Account Code.

Chapter 19

Transfer Entries of the Comptroller and Audit-General’s Account Code, Volume IV

Object of Transfer Entries

247. Transfer entries, which are entries intended to transfer an item from one head
of account to another, are necessary :—

(a) in order to correct an error of classification in the original accounts;

(b) in order to adjust, by debit or credit to its proper head, an item outstanding
under a debt, deposit or remittance head;

(c) in order to adjust inter-departmental and other transactions which do not

involve the receipt or payment of cash.

1. Another type of case in which transfer entries are necessary occurs when it is
found more convenient to classify items pertaining to more than one head of account
under a single head of account in the first instance than to classify them under each head
of account from the beginning, for example when a definite proportion of any receipt or
charge is taken to a separate head, it is often convenient to make the distribution upon the
totals of the Departmental Abstract or the Detail Book.
Art. 33] General Principles and Methods of Accounts 53

General Rules

248. Transfer entries should be prepared in Form 50. On one side of every transfer
entry, there should be only one major head to which there may be a debit or credit to
sundry heads or vice versa; debit should not be taken against sundry head by credit to
sundry heads. A .fortiori, the same entry should to contain independent corrections of two
major heads: it may not debit A by credit to B, and again C by credit to D.

In a transfer entry all particulars explaining both the nature of the adjustment and
(if it is a correcting transfer) the grounds of the correction must be clearly stated.

249. A list of adjustments which have to be made periodically should be

maintained in order to ensure that they are regularly made. These adjustments should, as
a rule, be made monthly. If this is found inconvenient and if the Accountant-General
considers that there are sufficient grounds for postponing any adjustments, they may be
made quarterly. Unforeseen adjustments should, however, be made as soon as the
necessity for them arises.

250. Save as may be authorized by the Comptroller and Auditor-General or by

Government consultation with Comptroller and Auditor-General, annual and half-yearly
transfers should, as a rule be avoided. Cases in which such transfers are authorized will
be found in the manuals of the Account Officers concerned.

Correction of Accounts

251. (a) If an item which properly belong to a Revenue or Expenditure head is

wrongly classified under another Revenue or Expenditure head in the accounts of the
same Government, the error may be corrected at any time before the accounts of the year
are closed, in the manner directed in Article 246; but after the accounts are closed, no
correction is admissible it being sufficient to make a suitable note of the error against the
original entry. If however, the error affects the receipts and disbursements of another
Government, or the transactions of a Commercial Department it should be corrected by
transfer in all cases as soon as the error is discovered. The procedure to be observed for
the correction of errors in the accounts of works in the Public Works Department shall be
laid down in Articles 149 and 200(a) of Volume III of Central Account Code.

(b) An error which affects a debt, deposit or remittance head must be corrected by
transfer, however old and small it may be. If the accounts of the year in which the error
took place are not closed the correction should be made by the removal of the item from
the head under which it was wrongly taken to that to which it properly belongs. If the
accounts of the year in which the error took place are closed, then the fo1lowing
procedure should be followed in the cases referred to:

(1) an item taken to one debt, deposit or remittance head instead of another—
the correction should be made by transfer from the one to the other.

(2) an item credited to a debt, deposit or remittance head instead of to a

revenue head, or debited to a debt, deposit or remittance head instead of to an expenditure
head - the correction should be made by transfer to the head under which it should
originally have appeared:
Art. 33] General Principles and Methods of Accounts 54

(3) an item credited to a revenue head instead of to a debt, deposit or

remittance head, -the corrections should be made by debiting refunds and crediting the
proper head.

(4) an item debited to an expenditure head instead of to a debt, deposit or

remittance head, - correction should be made debiting the proper head and crediting the
relevant receipt head (vide Article 22).

Note 1 —After the accounts of the year are closed, corrections of transfers
affecting capital major heads, unless they affect the account of different Governments,
should usually be affected without financial adjustment by alteration of progressive
figures without passing the debit and credit entries through the accounts of the year’s
financial transactions. This would prevent unnecessary inflation of the current year’s
accounts and the voting of grants of doubtful propriety which the inclusion of the
correcting entries in the current accounts would otherwise involve.

Note 2 :—Errors in the accounts of Divisional Officers of the Public Works

Departments shall be governed by the rule in Article 200 of Volume III of Central
Account Code.

Outline of Procedure

252. A correction by a transfer entry may be proposed by any section of an

Account Office; it should be accepted by the other section concerned if the entry has been
drawn up according to rule and necessary particulars are furnished. Original vouchers and
other documents in support of the entry should be recorded in the section which
originally dealt with them and not sent to the other section concerned along with the
transfer entry.

253. A transfer entry Number Book in Form 51 should be maintained in each

audit or accounts section in which should be entered in brief but clear detail the
particulars of each transfer originating in that section, it being sufficient to fill in columns
1 and 2 only in respect of transfer entries received from other sections. The transfer entry
Number Book for Central transactions should be kept separate from that for State
transactions. The entries proposed by the several sections should be numbered serially by
each, a distinctive letter being used by each section and these numbers entered in their
respective Number Books. The number to be given to an entry received from another
section should be expressed as a fraction, the numerator of which will denote the number
as given by the originating section and the denominator will show the number assigned to
the entry in the Number Book of the receiving section.

Note:- The provisions of this Article may be relaxed, at the discretion of the Heart
of an Accounts Office, when, in view of the large number of transfer entries received
from other sections, it is considered more economical, only with reference to the entries
so received and not those originating in the receiving section itself, to maintain a simple
‘Index of Transfer Entries’ showing the General Number as allotted by the receiving
section and the sectional number of the originating section, in the following form which
can be drawn up in manuscript.

Index of transfer Entries for the month of 199

General No. Sectional Number and General No. Sectional Number

distinctive letter and distinctive letter

254. (a) The addition or deduction which should be posted in Departmental

Abstracts or the Detail Books on account of the transfer entries should be worked out
from
Art. 33] General Principles and Methods of Accounts 55

the separate transfer entries of all sections in accordance with the procedure described in
the succeeding Articles. This procedure shall consist mainly of the preparation of an
abstract known as the Combined Transfer Ledger and Abstract (Form 52) showing the
debits and credits to be made under each detailed head affected by the entries of the
month, the totals of the debits and credits of the month necessarily being equal. The
Combined Transfer Ledger and Abstract for Central transactions should be kept separate
from that for State transactions;

(b) In the case of revenue and expenditure heads, it is the net outcome of the
transfer entries against each, i.e., the balance of the head, in the Combined Transfer
Ledger and Abstract (Form 52), which should appear as a debit or credit in the Abstract
but in the case of debt, deposit or remittance heads, the gross credit and the gross debit
should both appear in the Abstract, - the former in the receipt part and the latter in the
disbursement part, as these heads have corresponding accounts of both sides.

1. When large transfers are made from one debt, deposit or remittance head to
another in order to correct the original classification in accounts the correction should,
wherever possible be made by a deduct entry against the original debit or credit, so as to
prevent exaggeration of the transactions in the accounts. The same principle shall apply
also to transfer of balances from one account circle to another within the accounts of the
Central Government.

When, however, such a transfer affects a debt, deposit or remittance head for
which grants are obtained, it should be adjusted, irrespective of the amount involved, on
the following principles

(a) When the correction is in rectification of a misclassification of the same

year,— by deduct entry against the original debit or credit, as the case may be;

(b) When the correction is in rectification of a misclassification of the previous

year,— by plus credit or minus credit under the concerned, without affecting the debits
for the year; provided that in either case, if the correction involves the transfer of
balances from one account circle to another within the accounts of the Central
Government, the adjustment in both circles must be made without any reservation within
the same official year.

255. The transfer entries, after being noted in the Number Book, should be posted
individually into the left hand columns of the Combined Transfer Ledger and Abstract,
against the respective heads affected. The column for “Number” of the entry and that for
the “District or Department” which provides for the name of the District or Department in
whose accounts the original error appeared should be filled in at the same time.

256. From the right hand money columns of the Combined Transfers Ledger and
Abstract, the figures should be posted under appropriate heads in the Departmental
Abstract or the Detail Book, immediately under the total of cash transactions. The debits
to a revenue head, and the credits to an expenditure head should appear in the “Deduct”
line, but all other entries (with the exception of the kind mentioned in Rule I to Article
254) are entries of addition and should appear in the “add” line.

257. A note of a correction effecting district figures relating to revenue and

expenditure heads should be made against the original entry in the Departmental Abstract
Art. 33] General Principles and Methods of Accounts 56

of the month in which the error occurred. Where the Compilation Book of revenue and
service transactions takes the place of the Departmental Abstract, a note should be made
similarly in that Book. Transfers affecting a debt, deposit or remittance head should be
made by . ,‘ entries in the month of correction and need not be noted against the original
entry. in the case of important transfers, however, a note should be made in red ink,
across the original entry in the Detail Book, of the month of its reversal and across the
correcting entry of the month of the original one.

Note :- When detailed statement of revenue is communicated, month by month, to

the revenue controlling authority, particulars of correcting transfers made in the month’s
accounts should be given at the foot.

Closing of the Combined Transfer Ledger and Abstract

258. The Combined Transfer Ledger and Abstract should be closed by totaling,
under each head the figures in the columns on the left, and carrying into the columns on
the riltt the balance in the case of revenue and expenditure heads, and the totals (except as
SI ad in Rule 1 to Article 254) in the case of debt, deposit and remittance heads. The tot
of the two money columns on the left need not be carried forward, but the amounts in the
two money columns on the right hand side should be totaled and agreed. After the
Combined Transfer Ledger and Abstract is thus proved by the agreement between the
totals of these two columns, an abstract should be drawn up as indicated in the Article 55.
The Departmental Abstracts or the Detail Book should then be posted from the Columns
on the right, the poster ticking off each entry, as he posts it, At the end of the year, the
monthly volumes of the Combined Transfer Ledger and Abstract should be arranged in
order of the months and bound into convenient volumes.

Writes-off from Balanced heads to ‘Government’

Article 53. Ordinarily all amounts due to Government which are found to be
irrecoverable shall be written-off from the Debt head of account concerned to an
Expenditure head as a loss to Government. Similarly, any amount due by Government
remaining unclaimed for such time as may be prescribed by Government may be credited
as revenue of the Government concerned by debit to the Debt or Deposit head concerned.
Amounts outstanding due to book-keeping errors under heads which close to balance may
be written-off to “880 - Mice1laneous Government Account - Write-off from heads of
account closing to balance”, with the specific approval of the Comptroller and Auditor
General.

Note 1: (a) The powers of the Comptroller and Auditor-General of India referred
to above may be exercised by the Accountant General in cases where the amounts to be
written-off do not exceed Rs. 1,000 provided that-

(i) The amounts written-off have been thoroughly examined by the Internal Audit
Sections;

ii) the Accountant-General is personally satisfied that the items have been
outstanding for over 5 years, that a dead end has been reached in all cases, and that a
write-off is unavoidable; and

(iii) The Accountant-General has also satisfied himself that the outstanding is the
result of a book-keeping error only;
Art. 33] General Principles and Methods of Accounts 57

(b) The amounts written-off by the Accountant-General should be reported to the

Comptroller and Auditor-General of India annually by 10th November, along with
certificates regarding the fulfillment of the conditions (i) to (iii) in (a) above;

(c) In the case of P.F. Suspense, the limit 5 years mentioned at item (ii) of Note I -
(a) will not be applicable. Group Officer holding charge of Provident Group may also
write- oil the outstanding amount under this head upto Rs. 500 in each case subject to his
having satisfied himself about the conditions (i) to (iii) in (a) above. A quarterly report on
items written- off by Senior Deputy Accountant-General under the powers delegated to
him should be submitted to Accountant-General for review. The Accountant-General
should report to Comptroller and Auditor-General of India on the write-off of Suspense
half-yearly on 10th May and 10th November. (As amended in C.S. No. 1/81 vide G.O.
Ms. No. 79, Fin. & P1., Dt. 7-4-81)

Note 2 :—-Where it is not possible to establish that unreconciled

balances/differences under heads of account which close to balance are either due to
book-keeping errors or involve loss/receipts the balances/differences may be written-off
to “Government Account” with the approval of the Comptroller and Auditor-General
after obtaining concurrence of the Government concerned.

Accounts to work from balance to balance

Article 54. The accounts of each Government shall work from balance to balance.
The closing balance shown in the accounts of each month shall work up to the general
cash balance of each Government held in its treasuries (including remittances in transit)
and by the Reserve Bank of India at the end of that month.

ANNEXURE A

(See Article 25)

List of Sections/Sectors/Sub-sectors under the main Divisions of Accounts

Part I - Consolidated Fund.

(1) REVENUE:

I. Receipt Heads (Revenue Account)

A. Tax Revenue :
(a) Taxes on Income and Expenditure
(b) Taxes on Property and Capital transactions
(c) Taxes on Commodities and Services
B. Non-Tax Revenue :
(a) Fiscal Services
(b) Interest Receipts, Dividends and Profits
(c) Other Non-tax Revenue
C. Grants-in-Aid and Contributions.
II. Expenditure Heads (Revenue Account)
A. General Services :
(a) Organs of State
(b) Fiscal Services
Art. 33] General Principles and Methods of Accounts 58

(c) Interest Payment and Servicing of Debt.

(d) Administrative Services
(e) Pensions and Miscellaneous General Services
(f) Defence Services.
B. Social and Community Services
C. Economic Services:
(a) General Economic Services
(b) Agriculture and Allied Services
(c) Industry and Minerals
(d) Water and Power Development
(c) Transport and Communications
(f) Railways
(g) Posts and Telegraphs
D. Grants-in-Aid and Contributions.
(2) CAPITAL, PUBLIC DEBT, LOANS, ETC.,:
I. - Receipts Heads (Capita! Account)
II. Expenditure Heads (Capital Account)
A. Capital Account of General Services
B. Capital Account of Social and Community Services
C. Capital Account of Economic Services:
(a) Capital Account of General Economic Services
(b) Capital Account of Agriculture and Allied Services
(c) Capital Account of Water and Power Development
(d)
(e) Capital Account of Transport and Communications
(f) Capital Account of Railways
(g) Capital Account of Posts and Telegraphs
D. Grants-in-Aid and Contributions
III. Public Debt - Loans and Advances, etc.
E. Public Debt.,
F. Loans and Advances
G. Inter-State Settlement
H. Transfer to Contingency Fund
Part II - Contingency Fund
Part III - Public Account
I. Small Savings, Provident Funds, etc.:
Art. 33] General Principles and Methods of Accounts 59

(a) Small Savings

(b) Provident Funds
(c) Other Accounts
J. Reserve Funds
(a) Reserve Funds bearing interest
(b) Reserve Funds not bearing interest
K. Deposits bearing Advances:
(a) Deposits bearing interest
(b) Deposits not bearing interest
(c) Advances
L. Suspense and miscellaneous:
(a) Coinage Account
(b) Suspense
(c) Other Accounts
(d) Accounts with Governments of Foreign Countries
(e) Miscellaneous
M. Remittances:
(a) Money Orders, Remittances and adjustments between officers
rendering accounts to the same Accountant-General and other Remittances
(b) Inter-Government Adjustment Accounts
(c) Exchange Accounts
N. Cash Balance

ANNEXURE B

[Referred to in Article 26 (c)]

List of Standard Detailed Heads

1. Salaries
2. Wages
3. Travel Expenses
4. Office Expenses
5. Payments for professional and special services
6. Rents, Rates and Taxes/Royalty
7. Publications
8. Advertising, Sales and Publicity Expenses
9. Grants-in-aid/Contributions/Subsidies
10. Scholarships and Stipends
11. Hospitality Expenses/Sumptuary Allowances, etc.
60
Art. 33] THE ANDHR.A
General PrinciplesPRADESH ACCOUNTS
and Methods CODE
of Accounts 60

12. Secret Service Expenditure

13. Major works
14. Minor works
15. Machinery and Equipment/Tools and Plant
16. Motor Vehicles
17. Maintenance
18. Investments/Loans
19. Materials and Supplies
20. Interest/Dividend
21. Pensions/Gratuities
22. Depreciation
23. Inter Account Transfers
24. Writes-off/Losses
25. Suspense
26. Other Charges
27. Diet Charges
28. Purchase of Antiquities, ancient relies and contemporary arts.
Note :—Briefly explaining the scope of standard Detailed heads—

1. Salaries :—Will include, pay, allowances in all forms to officers and staff, and
the expenses on Leave Travel Concession. This object classification will also be utilized
for recording expenditure on emoluments and allowances of Heads of States and other
High Dignitaries. In cases, where it is decided by some State Governments to indicate in
accounts, the details of “salaries” such as “Pay of Officers”, “Pay of
Establishments”“Allowances and Honoraria” etc., for statistical information; detailed
heads may be opened accordingly in lieu of ‘Salaries’.

2. Wages :—Will include wages of labourers and to staff at present paid out of
contingencies.

3. Travel Expenses :—Will cover all expenses on account of travel on duty

including conveyance and fixed traveling allowances but excluding leave travel
concession which falls under ‘Salaries’.

4. Office Expenses :—Will include all contingent expenditure for running an

office, such as furniture, postage, purchase and maintenance of office machines and
equipment, liveries hot and cold weather charges (excluding wages of staff paid from
contingencies) telephones, electricity and water charges, stationery, printing of forms,
purchase and maintenance of staff cars and other vehicles for office use, as distinct from
vehicles for functional purposes like Ambulance Vans etc., (vide-l6).

5. Payments for Professional and Special Services :—Will include charges for
legal services, consultancy fees, remuneration to examiners, invigilators etc., for
conducting examinations, remuneration to casual artists by the Ail India Radio and all
other types of remuneration for professional services. It will also include payment for
 Art. 33]rendered, supplies
services General Principles
made by otheranddepartments
Methods of Accounts
such as Railway, Police61 etc. a
distinction being made in respect of supplies made, service rendered for the running on an-
office in which case the expenditure will be recorded under “office expenses”.

6. Rents, Rates and Taxes/Royalty :—Will include payment of rent for hired
buildings, municipal rates and taxes, etc. It will also include lease charges for land.

7. Publications :—Will include expenditure on printing of office Codes and

Manuals and other documents, whether priced or non-priced but will exclude expenditure on
printing of publicity material. This will also include discount to agents on sales. This head is
to be operated only where the cost of printing is borne by respective departments

8. Advertising, Sales and Publicity Expenses: —Will include Commission to

Agents and Printing of Publicity material.

11. Hospitality Expenses/Sumptuary Allowances, etc.,:—Hospitality expenses will

include entertainment allowance of high dignitaries etc., Expenditure on refreshments
served in Inter-departmental meetings, Conference etc., will however, be recorded under
‘Office Expenses’.

13 & 14. Major Works/Minor Works :—Will be classified with reference to the
classification of Major/Minor Works in C.P.W.A. Code. This will also include cost of
acquisition of land and structures.

15. Machinery and Equipment/Tools and Plant: —Will include machinery,

equipment, apparatus etc., other than those required for the running of an office (vide 4) and
special tools and plant acquired for specific works.

16. Motor Vehicles :—Will include purchase and maintenance of transport vehicles
such as Ambulance vans which are used for functional activities, as distinct from those used
for running an office.

17. Maintenance :—Will record expenditure on maintenance of works, machinery

and equipment (covered under items 13, 14 and 15). It will also include repairs incidental to
maintenance.

20. Interest/Dividend :—Will include interest on capital, discount on loans.

21. Pension/Gratuities :—Will include donations to Service Funds and

Contributions to Contributory Provident Funds.

23. Inter Account Transfers :—Will include transfer to and from Reserve Funds
etc.

24. Writes-off/Losses :—Will include writes-off irrecoverable loans. Losses will include
trading losses.
Art. 33] General Principles and Methods of Accounts 62
26. Other charges —A residuary head. This will also include rewards and prizes.
(G.O.Ms.No. 1.98, F. & P. (Finance Wing A L), dated 17-5-1976)
Art. 33] General Principles and Methods of Accounts 63
Art.43] Accountstobe Keptat Treasuries 1

ACCOUNTS CODE VOLUME II

CHAPTER 3
AccountstobekeptatTreasuries
SECTIONI —General Directions
A. Introductory……………………………………………………………27-28 135
B. Treasurer’sRecords—
I. Cash…………………………………………………………….29-30 135
II. Stampsand Opium……………………………………………. 31 136
Art.No.PageNo.
C. AccountsBooks—
I. CashBook…………………………………………………….32-34 136
II. SubsidiaryRegister
(a) General…………………………………………………… 35 137
(b) RegisterofAdjustmentsbetweenCentralandState
Governments……………………………………………... 36-37 137
(c) Register Adjustmentswith otherStateGovernment
(Inter-StateSuspenseAccount)………………………….. 38 137
(d)RegisterofTransactionswithRailways………………… 38-A 137
(e)Register ofAdjustments byTransfer……………………. 39-40 137
(f)OtherRegisters…………………………………………... 41 137
IIISpecialDirectionsforBankTreasuries
(a)General………………………………………………….. 42-43 138
(b)RegisterofReserveBankDeposits……………………… 44 140
(c)RegisterofMisclassificationsbythe Bank……………… 45-46 140
IV.Incorporation ofSub-treasuryAccounts……………………. 47-49 141
V.DailyClosingof Accounts………………………………… 50-54 143
VI.MonthlyClosingof Accounts………………………………. 55-56 148

SECTION2 —TransactionsofDepartmentswhichrenderseparate

CashAccounts………………………………………………….57-61 149

SECTION3 —Accountsof Deposits

A.General……………………………………………………………… 62-63 151
B.SecurityDeposits…………………………………………………… 64-67 151
C.PersonalDeposits…………………………………………………… 68-70 155
D.Civil andCriminalCourtDeposits………………………………….. 71-72 157
E.Depositsof LocalFunds…………………………………………….. 73-74 159
F.DepositsatSub-treasuries…………………………………………… 75-77 159
Art.43] Accountstobe Keptat Treasuries 2

SECTION4— Accountsof ReserveBank ofIndia Remittances

A. IssueofTelegraphic TransfersandDrafts…………………………..78-80 160

B. EncashmentofTelegraphicTransfers andDrafts……………………81-82 160
C. DrawingsandencashmentatSub-treasuries………………………… 83 161
D. Drafts,etc.,canceled…………………………………………………. 84 161
E. Drafts,etc.,exchanged……………………………………………….. 85 162
SECTION4-A
Accountsof MilitaryTreasureRemittances…………………… 86-89 162
SECTION5
MiscellaneousAccounts………………………………………..90-91 162
Art.43] Accountstobe Keptat Treasuries 3
CHAPTER 3
ACCOUNTSTOBEKEPTATTREASURIES
SECTION1—GENERALDIRECTIONS
A. — INTRODUCTORY

Article 27. The directions contained in this Chapter shall apply primarily to
accounts kept at District treasuries. Except as specifically provided in this code and
subject to such modifications as maybe authorized bythe Accountant-General, theyshall
also apply to accounts kept at sub-treasuries.

Article 28. In the State of Andhra Pradesh where classified accounts are rendered
by sub-treasuries to the Head treasury and by the latter to the Accountant-General. the
directions in this Chapter shall have effect subject to such modifications as may be
authorized by the Accountant-General, Andhra Pradesh, to suit the special arrangements
obtaining in that State.

B. TREASURER’SRECORDS

I. Cash
Article29.UndertheTreasuryRulesoftheGovernmentconcernedtheTreasurer, where
the cash business of the treasury is not conducted by the Bank, will maintain a simple
cash book (without subsidiary registers), in which each receipt and payment will be
posted at the time and on the date on which they actually occur and in the order of
occurrences. Payments made “by transfer” will not find a place in the cash book as no
payment of cash takes place. Cheques received in payment of value of service stamps
will, however, be entered on both sides of the cash book.

Note :—The directions in Chapter II of this volume shall not apply to the
Treasurer’s cash book.

LOCALRULINGUNDERARTICLE29
1. In a sub-treasury the shroff should maintain a cash book in two volumes, one
for receipts and the other for disbursement’s (From T.A. I). He should also maintain a
cash balance register (Form T.A. II).

2. Everytreasuryshould maintain aseparate registerin thesame Form as thecash

book showing particulars of all exchanges of coins.

Article 30. When stamps, match excise banderols or opium are sold, the totalsales
will be entered in the Treasurer’s cash book before it is closed for the day and a
memorandum will be prepared and forwarded to the Accountant, so that necessary entry
may be made in the account books.

II. StampsandOpium

Article31.UndertherelevantrulesorordersoftheGovernmentconcerned,stock
registers will be maintained for stamps, match excise banderols and opium in the custody
of the Treasury Officer in such forms as may be prescribed by competent authority after
consultation with the Accountant-General.

LOCALRULINGSUNDERARTICLE 31

The rules and orders regarding the maintenance of stock registers for stamps and
opium in the custody of treasuries are contained in the Stamp Manual and the Excise
Manual. These rules and orders are also applicable to the maintenance of stock registers
for match excise banderols in the custody of treasuries.
Art.43] Accountstobe Keptat Treasuries 4
C. —ACCOUNTBOOKS

I. CashBook
Articles32,33,34.[Deleted].

[N.B. — The day-book used in the treasuries of the State of Andhra Pradesh
corresponds to the cash book mentioned in the Comptroller and Auditor-General’s Rules

LOCALRULINGSUNDERARTICLES32-34
1. Everyreceiptintoorpaymentfromthetreasuryshouldatoncebeenteredinthe
Accountant’s day-book (From T.A. III) or in a register subsidiary to it. Receipts and
payments of certain departments and classes of transactions (See Local Ruling under
Article 41 below) should be entered in detail in subsidiary registers, and not entered in
detail in the day-book. All other receipts and payments should be recorded separately in
detail in the Accountant’s day-book in the order of their occurrence. The total receipts or
payments recorded in working day.

2. There should be two day-books, one for Central transactions and the other for
Statetransactions.SeparatesubsidiaryregistersshouldalsobemaintainedforCentraland State
transactions respectively.

3. Cash transactions and transactions “by adjustment” should be entered in the

appropriatecolumnsoftheCentralorStateday-book,asthecasemaybe. Forexamplean income-
tax deduction made from a bill of an officer of the Andhra Pradesh Government should
be entered in the column “by adjustment” on the receipt side of the day- book (or
subsidiary register if one is maintained for income-tax receipts) of the Central
Government, while the gross amount of the bill should be entered on the disbursement
side of the day-book of the Andhra Pradesh Government, partly in the column for cash
payments and partly in the column for payments “by adjustment”. When a receipt of
payment “by adjustment” is entered in a subsidiary register, the words “by adjustment”
should be written in the “remark” column. The cash items and the adjustment items for
the day should be totalled separately in each subsidiary register and taken to the
corresponding columns in the day-book.

In the case of transactions involving an odd number of half-price, fractions of a

pipeshouldbeneglected andtheamountbookedbyallthepartiesconcernedshouldbeto the pie
next below.

4. A monthlytotal should be struck in each subsidiaryregister and compared with

the corresponding entry in the monthly account of the treasury before the monthly
account is signed.

5. As soon as remittance of treasure (other than a currency remittance) is des-

patched, it should be entered in the daybook as a payment under “Local Remittances” or
“Foreign Remittance,” as the case may be - See Articles 17 and 19 in Chapter II.
Similarly as soon as a remittance of treasure (other than a currency remittance) is
received, thewholeinvoiced amount should be entered in theday-book, as areceipt, with a
note of the office from which it is received.

6. Accounting of receipts and payments relating to other departments of Central

GovernmenttakingplaceatSaltandCustomstreasuries :—Al1receiptsandpaymentsof
money at Salt and Customs treasuries on account of other departments of the Central
Government will be communicated to the Treasury Officer of the district concerned on
the date of their occurrence. On receipt of this communication, the Treasury Officer
should bring the transactions on to his books, the receipts by credit to the proper heads
and per contra debit to “District receipts in Salt and Customs treasuries adjusted” under
“882. Salt and Customs remittances other Departmental Remittances and the charges by
debit to the proper heads and credit to “District Charges in Salt and Customs treasuries
adjusted.
Art.43] Accountstobe Keptat Treasuries 5

II. SubsidiaryRegisters
(a) General

Article35.[Deleted].

(b) RegisterofAdjustmentsbetweenCentralandStateGovernments

Article 36 and 37. [Deleted].

(c) RegisterofAdjustmentswithotherStateGovernments

Articles 38. [Deleted].

(d) Registerof Transactionswith Railways

Article 38-A. The receipts and disbursements on behalf of Railways, originating

at a Central or State treasury, should be posted, separately for each Railway, in registers
in Forms T.A. 10 and T.A. II prescribed in Article 57, for departments which drawmoney
by cheques.

(e) RegisterofAdjustmentsbyTransfer

Articles 3 and 40. [Deleted].

(f) OtherRegisters

Article 41. Specialformsofregisters areprescribed inSections2to5 for receipts and

payments relating ‘o certain departments which draw money by cheques and for deposits,
bills and other specified classes of transactions.

LOCALRULINGUNDERARTICLE41
InthisState,subsidiaryregistersshouldbemaintainedforreceiptsanddisbursementsof the
following classes:-

RECEIPTS

RegisterofReserveBankofIndia
(i) (iv) Telegraphreceipts.
remittances drawn
(ii) Cashordersissued. (vii) Revenuedeposits.
(iii) Militaryreceipts (viii) CivilCourt’sdeposits.
(iv) PublicWorksreceipts (ix) CriminalCourt’s deposits
(v) Postal receipts (x) Personaldeposits.

PAYMENTS

RegisterofReserveBankofIndia Paymentsonaccountofthe
(i) (x)
remittances cashed. Customs Department.
Advances under the Local
(ii) Postal Payments. (xi) AuthoritiesLoansAct(India
ActIXof1904).
(iii) TelegraphPayments. (xii) Refunds.
Repaymentsof revenue
(iv) MilitaryPayments. (xiii)
deposits.
RepaymentofCivilCourt’s
(v) PublicWorksPayments. (xiv)
deposits.
Repaymentsof Criminal
(vi) Cantonment cheques. (xv)
Court’s deposits.
Art.43] Accountstobe Keptat Treasuries 6
Repaymentsof personal
(vii) Municipalcheques. (xvi)
deposits.
Interestpaidon
(viii) Forestcheques. (xvii)
Govt.securities.
Paymentson account oftheSalt
(ix)
Dept.
Note :—When receipts or payments of any particular kind are sufficiently
numerous in a sub-treasury, a subsidiary register may, with the approval of the Treasury
Officer, be maintained for recording them.

III. SpecialDirections for Bank Treasuries

(a) General
Article 42. Where the cash business of a State treasury or sub-treasury is
conducted by the Bank, the Bank renders two daily accounts of receipts and
disbursements of Central and State Governments, the latter embracing transactions not
onlyon behalf of the State iii which the Bank is situated but also on behalf of other State.
Such accounts, however, rendered in respect of Central treasuries and sub-treasuries
consist of a single account for the Central Government, all transactions on behalf of any
State Government being taken by the Bank against the balance of the Central
Government.

Article 43. The transactions reported by the Bank in the daily statement of
receipts and payments should, after examination with the chalans and vouchers
accompanying it, be posted into the cash book either direct or through some subsidiary
register, in the same way as transactions taking place in non-bank treasuries.

Note1 :—The net amounts only of payments are entered in the statements of the
Bank; for example, when a deduction is made from the amount of a bill on account of
income-tax the daily statements of the Bank shown only the net amount paid after
deduction.

xxx

Note 2 :—When the Cash book and the subsidiary are posted the voucher should
be numbered and arranged according to the register in which they are entered.

LOCALRULINGUNDER ARTICLE42&43

1. The Bank will maintain the following books for recording Government
transactions :—

(I)Thescrollcash book,which istheprimaryrecord.

(2) A pass book (or register of daily receipts and payments), which should bedaily
forwarded to and returned by the Treasury Officer.

2. All receipts and disbursements on account of the Government should be

entered in the scroll cash book. There should be two scroll cash books, one for State
transactionsandtheotherforCentraltransactions.Theentriesregardingpaymentsshould show
separately (i) the net amount paid in cash, (ii) the deductions and other amounts paid by
transfer; and (iii) the gross amount. Only the net amount paid in cash should be debited
by the Bank against the balance of the Central Government or the State Government,
asthecasemaybe;theamountspaidbytransfer shouldbeaccountedforby the treasury in the
monthly accounts.

Note :—Cheque issued by one Department of the Government in favour of

another Department of the same or another Government paid at the Bank will be
accounted for under the column “Transfer to or from Bank” in the Bank scrolls and
should be treated as cash transactions of the Government at the bank for the purpose of
postings in the treasury day-books.

3. The Manager or the Agent of the Bank, as the case may be should, after
satisfying himself as to the accuracy of the daily accounts, forward to the TreasuryOfficer
Art.43] Accountstobe Keptat Treasuries 7
at the close of every day a pen carbon copy of the scroll cash book together with the
register of daily receipts and payments (pass book) and all the appertaining vouchers and
chalans arranged according to the classification in the accounts. The documents should be
sent to the TreasuryOfficer in a locked box, so that there maybe no possibility of any
alternation or abstraction of any paper before they reach the hands of the Treasury
Officer.

With the concurrence of the Accountant-General, the pen carbon copy of thescroll
cash book may be submitted on the morning following the day to which it refers, instead
of at the close of the same day.

Note :—The Accountant-General has authorized the submission of the scroll cash
book on the morning of the next working day except on the 10th (or the 9th, if the 10th
happens to be a holiday) and on the last working day of the month.

4. The Manager or the Agent as the case may be should see that all vouchers sent
to the Treasury Officer are conspicuously marked with the word paid so that they cannot
be used fraudulently to support a further claim in the event of their falling into
unscrupulous hands.

5. The register of dailyreceipts any payments (pass book) has the columns for (1)
thedate; (2)the totalreceiptsforthe day; (2)thetotalpaymentsof theday; (4)theinitials of the
Manager or the Agent, as the case may be; and (5) the initials of the Treasury Officer. It
should be written up and forwarded to the Treasury Officer with the pencarbon copy of
the scroll cash book; the Manager or the Agent, as the case may be,should write his
initials in the fourth column as a certificate that the entries are correct. The Treasury
Officer should check the receipts and disbursements columns of the pen carbon copy of
the scroll cash book, compare the totals with the figures entered in the register and
examine the vouchers. After writing his initials in the fifth column of the
Registerintokenofhisverification,heshouldbereturntheregistertotheManagerorthe Agent, as
the case may be, the same day or the following morning.

The Government transactions put through by the Bank on days when the treasury
is closed should be incorporated in the treasury cash book and subsidiary register under
the dates on which they actually occurred although the actual posting is done on
subsequent dates.

6. Local Rulings I to 5 above apply mutatis mutandis to sub-treasuries which

transact their cash business through the Bank.

(b) Registerof Reserve Bank Deposits

Article 44. Thenet difference between thetotal receipts and thetotal payments as
shown in the Bank’s daily statement should be posted in a subsidiary register called the
Register of Reserve Bank Deposits (Form T,A. 6). In State treasuries this register should
be kept in two volumes - One for the Central Government and another for the State. The
figures posted in the registers should be checked and agreed with the pass bookforwarded
by the Bank along with its daily account and also, in the case of State treasuries, with
thetotals as shownin thedailyschedulerendered bythe Bank to its Head Office, a copy of
which is forwarded to the Treasury Officer.

(c) RegisterofMisclassifications by the Bank

Article 45. Transactions that may be classified incorrectly in the daily account
rendered by the Bank should be taken by the Treasury Officer to the correct heads of
account and posted into the appropriate subsidiary registers but on no account should be
figures under the head “875. Deposits with Reserve Bank be rectified in the treasury
accounts. Any differences resulting from the rectification of Bank’s misclassification of
Central transactions as pertaining to a State or of State transactions as pertaining to the
Centre, should be taken in the treasury accounts to the head “886. Adjusting Account
between Central and State Governments Misclassifications by the Bank” in the manner
indicated below.

Article46. State transactionserroneouslyentered intheBank’sdailystatementof

transactions of the Central Government and vice versa, should be entered in the Register
Art.43] Accountstobe Keptat Treasuries 8
ofMisclassificationsbytheBank(FormT.A.7).Theformisdividedintotwoparts,viz.,
(1) Central transactions included in the State statement; and (ii) State transactions
included in the Central statement so that separate totals may be struck for each part. The
total receipts posted into the first part should be taken in the cash book for State receipts
but in one lump sum under the head “886. Adjusting Account between Central and State
Government-Misclassifications by the Bank”. In the cash book for Central receipts, the
misclassified items should be taken under correct heads of Central receipts; and there
should also be a deduct entry under the head “886. Adjusting Account between
CentralandStateGovernment-MisclassificationsbytheBank”,correspondingtothetotal
amount taken to the identical head in the cash book of State receipts. In the same way
Central payments wrongly classified by the Bank as pertaining to a State should
bepostedunderappropriatedandcorrectheadsinthecashbookofCentralpaymentsandset
offbydeduct entryin lump underthehead “886. AdjustingAccount between Central and
StateGovernments, while the total amount ofsuch misclassified disbursements should he
posted in lump in the cash book of State payments under the head “886. Adjusting
AccountbetweenCentral andStateGovernment”. Similarpostingsshouldbemadeofthe items
of the second category in the Central and State cash books,

Note :—Any correction under the head “875-Deposited with Reserve Bank”
which will be necessary as a result of the adoption of the correct classification by the
Treasurywillbemadebythe Accountant -Generalthrough theCentralAccountsSection of the
Reserve Bank.

LOCALRULINGUNDERARTICLE46

ThecashbookmentionedinArticle46correspondstotheday-bookmaintainedin
treasuries in the Andhra Pradesh State. The posting to be made in the cash bookaccording
to the directions in Article 46 should accordingly be made in the day book in the Andhra
Pradesh State.

IV. IncorporationofSub-treasuryAccounts

Article 47. The transactions occurring at a sub-treasury should be reported to the

district treasury in a daily sheet in Form T.A. 8 (supported by vouchers) showingreceipts,
disbursements and balance of the day. The receipts and disbursements should be posted
from these sheets on the day of receipt into the accounts of the district treasury in the
same way as if they had taken place at it.

LOCALRULINGSUNDERARTICLE 47

1. The sub-treasuries in the Andhra Pradesh State render monthly classified

accounts. The sub-treasury transactions are incorporated into the accounts of the district
treasury only monthly — See Local Ruling 3 under Articles 95-96 in Chapter IV.

2. Every day each sub-treasury should prepare for submission to the district
treasury a daily sheet (Form T.A.8) reporting the receipts, payments and balance of the
day. The receipts and payments are copied from the totals in column 3 of the classified
lists — See Local Ruling 2 under Article 95-99 in Chapter IV. The daily sheet should be
sent to the district treasury, supported by all paid vouchers (except pension vouchers
which may be sent bi-monthly in two batches) and the prescribed chalans (except the
receipted chalans relating to commercial taxes and land revenue chittas which may be
retained and filed at the sub-treasury).

The daily sheets should be numbered consecutively and one should be sent even
on a day when there are no transactions unless it is a holiday and the sub-treasury is
closed. These sheets enable the district treasury to submit lists of payments to the
Accountant-General on due dates and also to keep of the District Treasury Officer
informed of the State of the balances at the sub-treasury. They also enable the district
officials to check periodically the accounting of miscellaneous receipts in sub-treasuries.
Art.43] Accountstobe Keptat Treasuries 9

Note 1 :— In order to ensure that the paid vouchers and chalans are not lost in
transmission to the District Treasury, the daily sheet containing the vouchers and chalans
should be despatched to the District Treasury by “Express Delivery” - cover duly
obtaining certificate of post I rig. When it is impossible to despatch the daily sheet and
vouchers and chalans together in an ‘Express Deliverycover” under certificate of posting
owing to the postal timings, a separate packet should be made of the paid vouchers and
chalans and sent to the Post Office in time for despatch of the same in “Express Delivery
Cover” under Certificate of Posting and the daily sheet may be posted later in theevening,
without a certificate of posting and Express Delivery.

Note 2 :—Some of the chalans, e.g., personal deposit chalans, and some of the
vouchers e.g., deposit repayment vouchers, which have to be entered in the prescribed
registers in the district treasury, should be entered immediately on their arrival.

Note 3 :—If, owing to the volume of sub-treasurytransactions, a TreasuryOfficer

finds it difficult to scrutinize every sub-treasury voucher, he may at his discretion have it
done by the Accountant, and carry out a percentage check of not less than 20 per cent
provided that, with the previous permission of the Director of Treasuries and Accounts
the percentage check by a Treasury Officer may be confined to not less than 10 per cent,
iftheTreasuryOfficeris satisfiedthattheprescribedcheck,hascorrectlyandsufficiently been
applied by the Accountant. All vouchers checked by the Treasury Officer himself should
be initialled by him in token of the fact. The percentage should be calculated on the
number of bills paid at the sub-treasury without pre-audit by the district treasury.

Note 4 :—The sub-treasuries at Vizianagaram, Rajahmundry and Vijayawadamay

submit the daily sheets of the first of every month so as to reach the district treasury not
later than the 5th and those of the 2nd to the 5th so as to reach the district treasurynot
later than the 7th of each month. If the list of a month is a holiday, the dailysheets of the
firstworkingdayofthe monthshouldbesubmittedsoastoarrivenotlaterthan the5thof the
month.

Article48. Thefollowingitems ofreceipts orpayments in thedailysheets ofsub-

treasuries should be excluded from the accounts of the district treasuryin which theywill
remain as part of the balance—

(i) Remittances of cash to and from a sub-treasury from and to another sub-
treasury within the district or the district treasury,

(ii) Transfer of funds, through currency to and from sub-treasuries against

opposite payments at the district treasury or at another sub-treasury subordinate to the
same district treasury.

Note :—This direction shall not apply if the cash business of the remitting or
receiving treasury or sub-treasury is conducted by the Bank - See Article 19.

LOCALRULINGSUNDERARTICLE 48

1. Remittances of cash between the district treasury and any of its sub-treasuries
or between two sub-treasuries in the district as also transfers between currency and
treasurymadeunderSubsidiaryRule4 underTreasuryRule30 should appearas payment or
receipts, as the case may be, in the cash and day-books of the district treasury and! or
sub-treasuries concerned and also in the daily sheets of sub-treasuries — See Local
Ruling 5 under Articles 3 2-34. At the end of the month the items should be excluded in
posting the monthly classified abstract, since they do not effect the total balance of the
district. The Treasury Officer should keep a check over these remittances by the
examination of the dailysheets received from sub-treasuries — See Local Ruling2 under
Article 47.
Art.53] Accountstobe Keptat Treasuries 143

Note 1 :—If the Bank transacts the cash business of the remitting or receiving
treasury, the remittances and transfers should be treated as local cash remittances; debits
for remittances sent and credits for remittances received should then appear in the
classified accounts and lists of payments of each treasury concerned and in its dailysheets
if it is a sub-treasury.

Note 2 :—All remittances despatched from and received at sub-treasuries should

beimmediatelyadvisedto thedistrict treasury. Theadvices of receipts should bechecked by
the district treasury against the corresponding advices of despatch. Remittances in transit
appearing in the monthly cash balance report should be checked in detail with the
accounts and records. Sub- treasury Officers also should watch carefully for the advices
of receipt of all remittances sent by them.

2. If a treasury defects and deficiency or detailed examination of remittance

received from another treasury and the amount is not immediately recovered from the
Shroff-in-charge, it should be charged in the day book as a distinct item with full
particulars and the Treasury Officer of the remitting treasury should be requested to
recover the amount and credit it in the accounts of his treasury. A deficiency discoveredat
the issue Department of the Reserve Bank of India in a remittance from a treasury should
be made good for the cash balance held by it and shown as an item of expenditure on
Government account under advice to the remitting treasury for recovery and credit in its
accounts. Similarly, a deficiency discovered at a treasury in a remittance from theIssue
Department of Reserve Bank of India should be made good from the treasury balance
under advice to the remitting office, which should credit the amount to the Government
account. The recovery of such deficiencies should be watched by the Accountant-General.

Article 49. The transactions of the Central Government in a State sub-treasury

should be reported to the district treasury in separate daily sheets. The receipts and
disbursements shown in such a daily sheet should be entered item by item in the cash
book or appropriate subsidiary registers relating to Central transactions, such entries inthe
accounts kept in a non-bank treasury being set off by the closing adjustment made
through the head “886. Adjusting Account between Central and State Governments —
Central transactions in non-bank treasuries”. In the accounts kept in a bank treasury, the
totals of receipt and disbursements of the Central Government appearing in the accounts
of non-bank sub-treasury of the State should be taken into the cash book of State receipts
and disbursements under the head “886. Adjusting Account between Central and State
Governments — Central transactions in non-banking sub-treasuries”, while in the cash
book for Central transactions, there should be deduct entries in lump under the samehead,
both on the receipts and disbursement side corresponding to the identical amounts entered
in the State cash book. This method of accounting should be adopted mutatis mutandis in
regard to transactions of a State Government in a Central non-bank sub- treasury which
renders accounts to a district treasury subordinate to that Government.

LOCALRULINGUNDERARTICLE49

There is no Central Sub-treasury rendering accounts to a district treasury in the

Andhra Pradesh State.

V. Daily Closing ofAccounts

Article50, 51,52&53.xxxxxx
Art.53] Accountstobe Keptat Treasuries 144

Article 54. Any amount fund surplus or deficit in treasury balances should be
brought to account at such in the cash book on the receipt or payment side, as the case
may be.

LOCALRULINGSUNDERARTICLE 54

1. The provisions of Articles 50 to 53 do not apply to treasuries in the Andhra

PradeshState-Seealso Article28above.Theyshouldfollowtheprocedureprescribed in the
following rules. The cash book mentioned in Article 54 corresponds to the day- book
maintained in treasuries in the Andhra Pradesh State.

2. The Treasurer and the Accountant should see that their accounts agree before
the office is closed for the night. The process of closing the accounts is as follows

(a) At the close of business for the day, the several totals of the subsidiary
registersshouldbecarriedintotheAccountant’sday-book,whichshouldthenbetotalled. The
opening cash balance for the day should be entered below the total receipts andadded
thereto. The total charges should be entered below this total and subtracted. This balance
represents the closing cash balance of the treasury (or sub-treasury).

(b) Meanwhile, the Treasurer (or the Shroff in a Sub-treasury) should also sum
up both sides of his cash book and draw up his absence memorandum in the form of the
Treasurer’s(orShroff’s)daily balancesheetinForm31(or32)intheAndhra Pradesh Treasury
Code.

(c) Theclosingbalanceof cash in the Accountant’s day-book should be agreed

with that in the Treasurer’s (or Shroff’s in a sub-treasury) balance sheet and a certificate
so that effect should be written in the Accountant’s day-book and signed by the Treasury
(or Sub-treasury) Officer before signing the day-book and the Treasurer’s (or Shroff’s)
cashbook.Thecertificateofagreement“AgreedwiththeAccountant’sday-book”should also
be signed in the Treasurer’s (or Shroff’s) balance sheet.

(d) For the purpose of reconciling the daily closing balance of cash shown in
the Accountant’s day-book with that shown in the Treasurer’s cash book, the several
totals of the receipts and payments of the Central subsidiary registers should first be
transferredtotheCentralday-book.Thetotalsofthereceiptsandpayments intheCentral day-
book as thus determined should transferred to the State day-book. The balance in the
State day- book will represent the treasury closing balance for the day according to the
day-book. The Central day-book should be closed to a nil balance by making deduct
entriesofthetotalreceiptsandpaymentsintherespectivecolumnsindicatedinForm
T.A.III.

(e) Twoclassified lists ofreceipts and payments should beprepared dailyfrom

the day books, one for Central transactions and the other for State transactions. The
receipts carried over from the Central day-book to the State day-book should be credited
in the State classified list to the suspense head “886. Adjusting Account between the
Central (Non-Railways) and State Governments” and the disbursements similarlydebited
to the same suspense head. Transactions relating to other States should be taken to the
suspense head “893. Inter-State Suspense”. The transactions relating to Railways should
be taken to suspense head “887. Adjusting Account with Railways”, Transactions on
different accounts and on behalf of different Governments and Railways should be
entered under the appropriate sub-heads under the suspense heads mentioned above. The
deduct
I
Art.53] Accountstobe Keptat Treasuries 145

entriesmadeonthereceiptanddisbursements,sidesoftheCentralday-book.[Seeclause
(d) above] should be credited and debited. respectively wider “886. Adjusting Accounts
between Central (Non-Railways) and State Government” in the Central classified list.

3. Inthecaseoftreasurieswhichtransacttheircashbusinessthroughthebank,the Bank
will send dailyto the treasurypen carbon copies of the scroll cash books separately for
Central and State transactions with the chalans and vouchers supporting the transactions.
The vouchers which have already been approved and registered by the Treasury Officer
which first be marked off in the register of chalans issued and the register for orders for
payment, that is, the date of discharge will be noted against the entries relating to the
several items in the registers. In this process, the vouchers shouldbe numbered and
arranged according to the register in which they are entered, as the numberof thepayment
order cannot serve also as the number ofthe voucher in the actual accounts. Each item of
receipt or payment will then be posted from thecarbon copy ofthe scroll cash books with
its chalans or vouchers in the day-books either direct orthrough subsidiary registers in the
same way as in the non-bank treasuries. The net difference between the total receipts and
the total payments as shown in the State scroll, cash book should be posted in the
Register of Reserve Bank Deposits relatingto the State Government, and similarly the net
difference in the central scroll cash book should be posted in the Register of Reserve
Bank Deposits relating to the Central Government. The register is provided with three
columns to show (1) the date, (2) payments, and, (3) the receipts of the day, and there will
be onlyone entry in column (2) or (3), as the case may be, against each date. When the
total receipts exceed the total payments, the difference will be posted in column (2) and
when the total payments exceed the receipts, the difference will be posted in column (3).

The total figures in the both columns ‘in cash’ and ‘by adjustment’ in the Central
subsidiaryregistersshouldbecarriedoverdailytotheCentralday-book.Thetotalfigures in
column ‘by adjustment’ in the Central day-book should then be transferred dailyto the
State day-book before the latter is closed. The figures so transferred should be classified
under “886. Adjusting Account between Central and State Governments” in the Stateday-
book and classified list. The adjustment columns of the Central day-book, should be
closed daily to a nil balance by deducting the total of receipts and payments in the
respective columns by a minus entry, the totals thus deducted being classified under“886.
Adjusting Account between Central and State Governments” in the Central day- book
and classified list.

4. The following are some of the more important duties to be fulfilled by the
Treasury Officer (or Sub-treasury Officer at a sub-treasury) before closing the accounts
for the day :—

(1) The Accountant’s day-book, the Treasurer’s (or Shroff’s in a sub-treasury

balance sheet, the subsidiaryregisters of receipts and payments, the vouchers and chalans
and the number book should be laid before him, and he should perform the following
checks

(i) He should check every chalan with the entry in the number book and see
that every credit entry in the number book has been brought into account in theprescribed
subsidiary register or the day-book, as the case may be; as each item is

[A. Code— 10]

Art.53] Accountstobe Keptat Treasuries 146

checked, he should tick off the entries in the subsidiary register and the number book
corresponding to the chalan or bill. He should initial each entry in the subsidiary register
as it is checked — See Subsidiary Rule 11(a) under Treasury Rule 10.

Note :—The number book in a treasury dealing with the Bank exhibits only
transfer transactions taking place at the treasury. The entries of cash and transactions in
the Bank’s daily sheet should be ticked off in the same way as is done in the number
book, as entries are made in the subsidiary registers or day-book, and need not be copied
in the number book. A memorandum as shown below should be drawn up in the day-
book in agreement of the daily total:

Rs. Ps.
Dailytotal asper numberbook ……..

Daily total as per Bank’s daily sheet …….

Total …….

Agreedwiththetotal(receipts)ofthe day-book.

Head Accountant.

(ii) He should compare each entry of a payment in the Accountant’s day- book
or a subsidiary register with the corresponding payment order — See subsidiary Rule 32
underTreasuryRule16 — and tick ofeach voucherand theentryas it iscompared. (This will
not be necessary if the Treasury Officer adopts the alternative plan of having the account
entry presented to him for initials at the same time as he signs the order for payment). If
any portion of the voucher is paid by transfer, he should see that there are corresponding
debit and credit entries in the transfer columns of the registers and should tick off each
pair of entries.

(iii) He should see that the totalling in the subsidiary registers have been
correctly made and carried to the day-book, initialling the totals and ticking off theentries
in the day-book as he thus compares them. This must be done, in the case of receipt
registers, even when the total for the day is blank; but it is not necessary to initial blank
payment registers. If the number of blank receipt registers is great, the following
planmaybe adopted.Suchregistersas areonlyrarelyrequired formakingentriesmaybe bound
in a single volume and kept under the Treasury Officer’s own lock. When the volume is
required for making an entry, he should give out the register for the purpose, and he
should receive it back at the time of signing the dailyaccounts, carefullyseeing in doing
so that all new entries in it are correctly carried to the day-book, and initialling them
accordingly. It is obviously necessary to guard against fraud or mistake in omitting to
bringan entryfrom these registers to the day-book, and this precaution is not complete if
the Treasury Officer examines only those registers from which an entry has been carried
to the day-book.

Note :—As a result of rules (i) to (iii) above every entry in the day-book shouldbe
checked and ticked off by the Treasury (or Sub-treasury) Officer.

(iv) Heshould check thecorrectness ofthetotals and oftheopeningbalancein the

day-book.

Note :—In a district treasury the Treasury Officer may have the totalling of the
Accountant’s day-book verified by some principal subordinate officer other than the
Accountant, who should initial them as correct.
Art.53] Accountstobe Keptat Treasuries 147

(v) Heshould seetwiceaweek thatall the vouchers areproperlyarranged

- seeLocal Ruling15 underArticles 95-99in Chapter IV.

(2) Before signing the Treasurer’s daily balance sheet, he should roughly verify
the balance in the sole charge of the Treasurer, as shown in that sheet and satisfy
himself—

(i) thatno uncurrentcoins areleftin chargeofthe Treasurer;

(ii) that no moresmall silverand copper coin is so left thanis actuallyrequired

for current use; and

(iii) that the whole balance in sole charge of the Treasurer does not exceed his
current requirements - see also Subsidiary Rule 3(b) under Treasury Rule 11.

Note:—In asub-treasurytheSub-treasuryofficershould similarlyverify thecash

balance and stamps under single lock and check the Shroffs balance sheet before signing
the Shroff’s cash book - See also Subsidiary Rule 8 (g) under Treasury Rule 11.

5. TheTreasuryOfficer(orSub-treasuryOfficerinasub-treasury)should signthe
Treasurer’s (orshroff’s in asub-treasury)balance sheet on theeveningofthedayitselfto
whichitrefers,afterithasbeencomparedandagreedwiththeAccountant’sbooksbefore
closingthetreasuryfortheday. When however,thepressureofwork in adistrict treasury
renders this impossible, the comparison with the Accountant’s books may be postponed
tillthefollowingmorning,exceptondaysprecedinggazettedholidayswhentheTreasury
Officer should see to the reconciliation before the office closes. When the comparison is
postponed under this rule the certificate over the Treasury Officer’s signature at the foot
of the Treasurer’s balance sheet should be altered in manuscript by canceling the words
“Agreed with the Accountant’s day-book and” before the form is signed by the Treasury
Officer, which must be before the closing for the day. The Treasury Officer should then
sign an additional certificate in the form “Agreed with the Accountant’s day-book” to be
added in the book on the following morning.

6. The daily account of the Bank transacting the cash business of a treasury may,
with the concurrence of the Accountant-General, be sent to the Treasury or Sub-treasury
Officer on the morning of the day following that to which it relates. In such cases the
signature and comparison of the Accountant’s books may be made in the evening instead
of in the morning of the day on which the Bank’s account is received, that pressure of
work renders it necessary so to postpone it. In the case, however, of all district treasuries
dealing with the Bank and the sub-treasuries at Vizianagaram and Rajahmundry, the
Accountant’s day-book for the first four working days of each month may be closed on
the day following that on which the Bank’s account is received.

7. When cheques in payment of taxes and other amounts due to the Government
are received at the Bank from district headquarters sub-treasuries the amount of the
chequesshouldbecreditedtotheGovernmentaccountunderthehead“CashRemittances
- Reserve Bank of India”. On receipt of the challans dulyreceipted bythe Bank, the Sub-
treasury Officer should debit the amounts realized under the head “Cash Remittances -
ReserveBankof India”andatthesametimecredittheamountsundertherelevantreceipt head or
heads in his accounts.

8. Any excess found in a treasury balance should be credited to the State

Government under, the head “065. Other Administrative Services. C. - Other Services –
Other
Art.53] Accountstobe Keptat Treasuries 148

Receipts”. Any excess found in a currency chest in a treasury that does not transact its
cash business through the Bank should also be credited to the State Government underthe
above head. Any excess found in a currency chest in the joint custody of the Government
and the State Bank of India/Hyderabad (Treasury Pay Office) or in the sole custody of the
State Bank of India/Hyderabad should be credited to the State Bank.

VI. Monthlyclosing of Accounts

Article 55. As it is absolutely necessary that the figures given in the different
receipts, accounts and returns exchanged with other departments should agree exactly
with those shown in the treasury accounts, the formal closing of their accounts of the
several sub-treasuries for the month should be fixed for the latest day by which any riskof
failure to receive that day’s returns at the headquarter’s treasury before the end of the
month will be eliminated anytransactions of a later date should be included in the returns
of the treasury for the next month. The headquarters accounts for March must, however,
be kept open until receipt of daily sheet of every sub-treasury for 31st March, in orderthat
all receipts and payments taking place at sub-treasuries within the official year may,
without exception, be brought into the accounts of the year. Every endeavour should be
made to )o the March accounts not later than the 5th of April. Au correcting entries
affecting inter-governmental adjustments and the Adjusting Account with Railways
should be intimated to the Accountant-General so as to reach him bythe 12th of April, at
the latest.

LOCALRULINGSUNDERARTICLE 55

1. The accounts of a sub-treasury should as a rule be closed at noon on the day

previous to the last day of the month (or on such earlier date as may be fixed by the
District Treasury Officer which the sub-treasury is situated at a distance from the district
head-quarters) and despatched in the evening, so that all the accounts may reach the
district treasury by the 1st of the month. If the day of closing should fall on a Sunday or
any other holiday on which the sub-treasury is closed, the accounts should be des-patched
on the last previous working day. Any later transactions should be treated as transactions
of the followingmonth in the district accounts. The account for March, as an exception,
should be kept open until the last day of that month and should be closed and despatched
by the evening of the 1st April.

If any amount is paid into a sub-treasury at the end of a month after the accounts
of the month have been closed, it shouldbe accepted and brought into the accounts of the
succeeding month. Similarly, payment from a sub-treasury should not be refused on the
ground that the accounts for the month have been closed. Payments should be made and
brought into the accounts of the following month.

2. In the case of bank treasuries, the difference between the totals of the two
money columns of the Register of Reserve Bank Deposits should, at the close of the
month, be carried into the cash account if the total of the column for receipts exceeds the
totalofthecolumnforpayments,orintothelistofpaymentsifthetotalofthecolumnfor payments
exceeds the total of the column for receipts.

3. The books of the Central Accounts Section of the Reserve Bank are closed for
the month of March on the 15th April following, after that date no inter-governmental
adjustmentscanbeearnedoutintheaccountsofthepreviousfinancial year.Specialsteps
should,therefore,betakentosettleaspromptlyas possibleallcashandbooktransactions
Art.57] Accountstobe Keptat Treasuries 149

involving inter-governmental adjustments that originate towards the close of the year, so
that the Accountant-General may, as far as possible send the necessary advices to the
Central Accounts Section of the Reserve Bank before the 15th April of the succeeding
year. Such adjustments origination in the accounts for February and previous month
should be completely settled in time for the advices to be sent to the Central Accounts
Section of the Reserve Bank before the end of March. Treasury Officers should submit
intimations of all correcting entries affecting inter-governmental adjustments included in
the treasury accounts for March so as to reach the Accountant-General by the 12th April
at the latest. As the March Final Accounts are closed early in June, all communications
affecting the accounts of a previous year should be submitted to the Accountant-General
before the end of May.

Article56.[Deleted].

SECTION2

TRANSACTIONSOFDEPARTMENTSWHICHRENDER
SEPARATE CASH A CCOUNTS

Article 57. Save as provided in Articles 58 to 60 below as may be specially

authorized bytheAccountant-General in anyparticularcase, moneys received from oron
behalfofdepartmentalofficerswhorenderseparatecashaccountstotheauditorAccount Office
should be recorded at once in a register in Form T.A. 10. In the same way, funds supplied
to such departmental disbursing officers on cheques drawn against letters of credit or
otherwise should be entered in a register in Form T.A. 11.

LOCALRULINGSUNDERARTICLE 57

1. In recording the receipts on account of the Public Works Department in the

registerinFormTA.10remittancesreceivedfromdepartmentalofficersshouldbeshown
separately from those received from others on account of departmental officers.

2. When a contribution is received in the treasury during a month from a private

party towards the cost of a public work, the Treasury Officer should send the Executive
Engineerconcerned,bythesixthdayofthefollowingmonth,an extractfromtheRegister of
Receipts (Form T.A. 10) showing contribution received.

3. When a Government servant of another department acting as a Public Works

disburser refunds into the treasury part of the moneys previously withdrawn from the
treasury for expenditure on a work the following particulars should be given in the
Register of Receipts (Form T.A. 10):

(a) nameoftheworkforwhichtheoriginal amountwas sanctioned;

(b) nameofthePublicWorks Officerfrom whomreceived; and

(c) theamount originallywithdrawnand date of withdrawal.

When a refund relates to compensation for land, the month in which the payment
was originally debited to the Public Works Departments and the item in which it was
included should be specified in the Register of Receipts.

4. The treasury should record all payments made on cheques drawn by Public
Works Officers in the “Register of cheques paid against letters of credit” (Form T.A. 11)
Art.57] Accountstobe Keptat Treasuries 150

butnoentry shouldbemadeinthecolumnfor“balance”,sincenolettersofcreditare issued in

favour of Public Works Officers.

Article 58.RemittancesbyForestOfficers shouldbe enteredinaregisterinForm

T.A. 12 which may also be used for the purpose of consolidated receipt furnished to
Forest Divisional Offices. Funds supplied to Forest Disbursing Officers by means of
cheques or otherwise should be entered in Register of Forest Cheques Paid, Form T.A.13.

LOCALRULINGSUNDERARTICLE 58

1. All sums paid into a treasury by a Forest Officer or on his account (except
earnest money deposits tendered by contractors or purchasers of forest produce) shouldbe
credited to the Forest Department as ‘Forest remittances’. Earnest money deposits
tendered by contractors or. purchasers of forest produce should be credited to Security
deposits. Tree owners fees in respect of trees tapped for toddy should, as and when they
are realized be credited to the department. body or administration, which is in charge of
the trees.

2 The Treasury Officer should verify the monthly list of cheques drawn received
from a Forest Officer and return it after counter signature to that officer without delay.
Article59and60[Deleted].

Article 61. in all the cases covered by the directions in this section, the Treasury
Officer should arrange to have a monthly settlement of account with the Departmental
Officer concerned in accordance with such procedure as may be prescribed by
Government.

LOCALRULINGSUNDERARTICLE 61

1. The Treasury Officer should send the schedules with voucher or challan to the
respective Executive Engineer every month in respect of amounts booked under P.W. III
otherRemittances Debit/Credits. [Memo. No. 76347/1 392/Accts/66-2 Finance, Dt. 24-3-
1967]

2. (a) The Treasury Officer should have the accounts of a Divisional Officer,
PublicWorks Department, foreach month settled veryearlyin thefollowingmonth. That is,
the TreasuryOfficer should have the pass book written up with cheques cashed during the
previous month. The Treasury Officer should not merely check the entries in the
Remittances/PassBookwithhisregisterinForm T.A.10butshouldalsocheckandagree the
Certificate of TreasuryReceipts/Certificates of TreasuryIssues with amounts brought to
account under S.A. 63. lit token of this check the Treasury Officer should certify (inthe
Certificate of Treasury Receipts/Certificate of Treasury Issues) in the form given below
that the agreement has been effected

“Certified that the amount for which Certificate of Treasury Receipts/certificateof

Treasury Issue is issued agrees with the amount credited/debited in Treasury S.A. 63
against the division under P.W.I. Remittances/II cheques except for Rs…….. which is
explained below:-

(a) Rs ………. difference shown in the previous month since adjusted in the
Treasury account of this month.

(b) Rs………underreconciliationwillbeadjustedinnextmonth’saccounts‘

(b) At the time of signing the remittance book, the Treasury Officer should
reconcile the difference between the Certificate of Treasury Receipts/Certificate of Trea
Art.57] Accountstobe Keptat Treasuries 151

sury Issue and the amount entered in the Remittances/Pass Book and rectify any
differencesduetomisclassificationandshouldalsoendorseontheRemittance/PassBook that
the reconciliation has been affected and that the misclassifications of the previous month
have been corrected by Alteration Memo. No dated He should also furnish the Divisional
Officer with a certificate of total issues as follows :—

I hereby certz5’ that the total issues made from this treasury on cheques drawn
againsttheaccountofMr.……………….Officer-in-charge…………divisionduring
………..19, amountto Rs ………. ( ....................... in words)

Note:-Thecertificatementionedin paragraphIshould be furnished.

(c) The above procedure applies mutatis mutandis to “Forest Remittances-I,

Remittances II and cheques”.

SECTION3—ACCOUNTSOFDEPOSITS

A. — GENERAL

Article 62. No item should be credited as a deposit save under formal order of
competent authority. Further more, no sums should be credited in any deposit register
which can be carried to anyother head of account; for example, revenue paid to Govt. on
account of a demand not yet due should at once •be carried finally to the proper revenue
head, and should not be placed in deposit.

Article 63. The amount of a lapsed deposit refunded under the rules Government
should appear in the treasury accounts as a miscellaneous refund and not as a payment of
deposit.

LOCALRULINGSUNDERARTICLES62&63

1. Except in the case of certain Civil and Criminal Court’s Deposits (See Articles
71 and 72 and the Local Rulings thereunder), the detailed accounts of all classes of
deposit transactions are maintained in the treasury. When the detailed accounts of Civil
and Criminal Court’s Deposits are not kept in the treasury, they are kept in the Court
concerned.Thedetailedrulesprescribingtheaccountstobemaintainedandthe returnsto be
furnished for all classes of deposits are contained in the sections that follow in this
chapter and in Chapter IV.

2. No deposit account should be opened by a treasury for an officer of the Public

works Department. Whatever sums are paid into a treasury by an officer of the Public
Works Department, or on his account, should be carried to the credit of that departmentin
the Treasury Account. This rule applies also to deposits made at the instance of the Public
Works Department by local bodies to meet the cost of works to be carried out by the
Public Works Department.

B. —SECURITY DEPOSITS

Article 64. Each item of Deposit received should at once be entered in a register
(Form T.A. 20) and numbered. There should be a separate series of numbers for each
register, beginning a new each year. The Treasury Officer should check carefully the
amountandparticularsofeachentryandthen.sethisinitialsinthepropercolumnagainst each. A
daily total only should be carried from each register to the cash book.
Art.57] Accountstobe Keptat Treasuries 152

Article 65. Every item should be recorded in the name of the person from whom,
not that of the Government official through whom, it is received; it should be passed
through the accounts even though repaid on the day of receipt, and be kept distinct,
however small it be, till finally disposed of, never being consolidated with others.

Article 66. Each repayment, of deposit should at once be recorded both in the
Register of Repayments, Form T.A. 21, from which the daily total should pass into the
cash book, and in that of Receipts, Form T.A. 20, in the latter the date and amount of the
repayment also being noted.

Note :—When, in the case of a bank treasury, a deposit is repaid by an order of

the Bank the entry in the Register of Receipts should be made when the order is issued
and that in the Register of Repayments when the repayment is reported in the daily
account of the Bank. If, in any case, repayment is not made on made on the order on the
Bank, the actual date of repayment should also be noted in Register of Receipts justbelow
the entry of the date of the order.

Article 67. When a deposit is adjusted by transfer to some other head of account,
the head of account to which it is transferred, and the item in which it is included in the
treasury account, should be noted both in the Register of Receipts. and in the Register of
Repayments, and it should be credited separately in the cash book or the subsidiary
register concerned. The voucher submitted with the list of repayments should state these
facts, the statement being attested by the signature of the Treasury Officer.

LOCALRULINGSUNDERARTICLES64-.67

Note :—The provisions of the above Articles and the following Local Rulings
apply also to other classes of deposits such as deposits for work done for Public bodies,
individuals, etc., for which detailed account are kept in the treasury.

1. The entry in the column ‘Nature of deposit’ in the Register of Receipts of

deposits(FormT.A.20)shouldbesufficientlydetailedtoshowclearlywhytheamountis
deposited.

When a deposit is made byone partyto be repaid to anotherpartythe name of the

second party should be clearly stated in the column ‘Nature of deposit’ in the Register of
Receipts of deposit as a precaution against a refund of the amount by mistake to the
depositor or his agents or creditors.

2. Notwithstanding the provisions of Article 65, the following classes of deposits

may be recorded in the Register of Receipts of deposits in the name of the Government
servant through whom the deposit is received :—

(a) Civil Court’s deposits which include a large number of items such as unspent
witness batta, etc., may be recorded under the designation of the presiding judge of the
Court concerned;

(b) Deposits made bypurchasers at sales of immovable propertyunder Rule XXII

of the rules under the Madras Co-operative Societies Act (Madras Act VI of 1932) may
be recorded under the designation of the Deputy Registrar of Co-operative Societies
concerned.

3. In order to guard against a second repayment, every refund of a lapsed deposit

should be recorded in the District Register of Receipts if the register has not alreadybeen
destroyed under the rules.
Art.67] Accountstobe Keptat Treasuries 153

4. When a treasury which transacts its cash business through the Bank repays a
deposit by issuing an order on the Bank, the entry in the Register of Receipts of deposits
should be made when the order on the Bank is issued and the entry in the Register of
Repayments should be made when the repayment is reported in the Banks daily sheet.

5. When deposits are made under the provisions of the Madras Estates Land Act
(Madras Act I of 1908), the Treasury or the Sub-treasury Officer should send theRevenue
Divisional Officer concerned a weekly statement in Form T.A. IV showing the receipts
and repayments relating to such deposits.

6. Electiondeposits:-(1)Depositsonnominations—

(a) CashDeposits-T.DepositandAdvances-PartII-Depositnotbearing interest -

C. Other Deposits Accounts - Departmental and Judicial Deposits.

The Deposits paid by or on behalf of candidates for Election to the State

Legislature should be credited to the head of account - 843. Civil Deposits - Deposits in
connection with Elections - Deposits made by candidates for State Legislature.
(Govt.Memo.No.90444/2619/AcctsJ64-3,Finance,dated4-9-1964)

Treasury Officers should see that the items are recorded in the deposits registersin
sufficient detail in accordance with the procedure laid down in Article 65 and theabove
Local Rulings so as to distinguish each individual item. Particulars of theReturning
Officer, the name of the candidate and of the constituency should be given against each
item.

If the deposit is forfeited it will be credited under the detailed head “Other
receipts” under 065. Other Administrative Services - B. Elections Fees, fines and
forfeitures, (Memo. No. 90444/2619/Accts/64-3, Finance, dated 4-9-1964)

All refunds of deposits should be authorized in writing by the Returning Officer

concerned. The rules in the Andhra Pradesh TreasuryCode, Volume 1, for the repayment
of Revenue Deposits will apply in the case of refunds of these deposits also.

(b) Deposits made in Government promissory notes:- The procedure detailed in

paragraph 108(a) of the Government Securities Manual should be followed with the
modification that the Treasury Officers themselves should receive the deposits in these
cases. If the deposit is forfeited, the Returning Officer will realize the amount of the
promissory notes and remit into the treasury the amount prescribed as deposit, thebalance
if any, being refunded to the candidate. The amount paid into the treasury should be
credited to the detailed head “Other receipts” under “065. Other Administrative
Services”.

(2) Deposit on challenged votes :— These will be in cash and in instructions in

regard to cash deposit on nominations apply mutatis mutandis to them.

Article 67 (A). In April each year, the Treasury Officer should examine the
registers of Receipts of Deposits (Form T.A. 20) of the second preceding year andtransfer
to a Clearance Resister in Form T.A. 43 with suitable change in the headings, all the
outstanding balances which are not reported for lapse under the rules of Government
(Vide Art. 127). To this Clearance Register should also be transferred any items in thelast
preceding Clearance Register but one, that are for special reasons not allowed tolapse to
Government.
Art.67] Accountstobe Keptat Treasuries 154

Note :—It is not intended that the Clearance Register should be used in District
Treasuries; the repayment of items entered in the Clearance Register should continue to
be recorded therein the original Receipt Registers vide Art. 66.

LOCALRULINGS UNDER ARTICLE 67-A

1. Old items transferred from one Clearance Register to another should be

carefully watched by the Treasury Officer. They should in the ordinary course lapse
attheendofthetwo yearsforwhichthenewRegisterincurrent.Theyshould notbecarried
forward to a third clearance register without the special sanction of the Accountant-
General.

2. At the foot of each clearance register, a memorandum in the following form

should be appended, and the total amount should be agreed with the closing balance inthe
plus and minus memorandum for March excluding the amounts of lapsed deposits.

Rs. Ps.
Balanceonthe31stMarchpriortothelastyearbuttwo Balance

on the 31St March of the last year but two Balance on the

31st March of the last year but one Balance on the 31st

March of the last year

Total

3. At the beginning of each financial year, each Civil Court dealing with a
Treasury which transacts its cash business through the Bank should submit to the
Treasury Officer a Clearance Register for all balance outstanding for more than one
financial year, excluding there from the item of deposits reported for lapse. The deposits
authorized to be paid but not yet paid bythe treasury should be detailed at the foot of the
Register and the grand total agreed with the balance as shown in the plus and minus
memorandum.

A memorandum of balance for the last four years should also be given at the foot
of the register in the form prescribed in Local Ruling 2 above.

Article 67 (B). Once a half-year, a certificate should be furnished to the

Accountant-General bythe Director of Treasuries and Accounts that he or one of the Dy.
Director of Treasuries and Accounts has personally examined the Register of receipts of
deposits (Form T.A. 20) and the Register of repayments of Deposits (Form T.A. 21) and
that the entries are made with utmost care and regularity.

Note :—The examination is not intended to be Mechanical, and to secure onlythat

all necessary entries are made and initialled without fail at the time of transaction,but also
that no moneys are placed unnecessarily in deposit or allowed to remain there without
good cause.

LOCALRULINGUNDERARTICLE67(B)

1. General :—The certificate required under Art. 67 (B) should be based on a

personal examination of the deposit registers by taking a few items at random in the
Register of receipts of Deposits (Form T.A. 20) and the Register of Repayments of
Deposits (Form T.A. 21) - See also instruction 5 under Treasury Rule 4. A note of the
items examined should be entered in the Extract Register of Receipts of Deposits (Form
T.A. 43) in which the half-yearly certificate is recorded, naming the items themselves or
referring to the totals in which they are included.
Art.67] Accountstobe Keptat Treasuries 155

C. —PERSONAL DEPOSITS

Article 68. Receipts and Payments on Personal Deposit accounts should be

recorded in personal ledgers in Form T.A. 22, which should be bound up into a Volume.
Every personal account should have its own ledger page in which the receipts should be
entered in regular order without being numbered and the disbursements (made not from
any particular item, but from the aggregate balance in hand) noted as they are made
without any further remark.

Article 69. An account of cash orders issued on sub-treasuries should be

maintained likethat of Personal Deposits, throughapersonal ledgerforeach sub-treasury in
Form T.A. 23. When paid at the sub-treasury, the amount of the cash order should be
entered in the sub-treasury cash book and daily sheet as a miscellaneous payment, but in
the district treasury it should be posted in the personal ledger account as a repayment of
deposit.

The procedure for the issue of cash orders, etc., is described in Subsidiary Rules
35 and 37 under Treasury Rule 16 and Part II of the Andhra Pradesh Treasury Code.

Article 70. The daily totals of receipts and payments should be carried from the
personal ledgers (Forms T.A. 22 and T.A. 23) into the Register of Personal Deposits
(Form T.A. 24) from which again the aggregate daily total only should be carried to the
cash book.

LOCALRULINGSUNDERARTICLES68-70

1. A sufficient number of sheets of Form T.A. 22 should be bound up into a

volume and successive sets of pages should be assigned to the several accounts. It is not
necessary to transfer the accounts to a new volume with a new year, but if there is nopage
available when it is necessaryto open a new account or to carryforward an old one, all
unclosed accounts should be simultaneously earned forward to a new volume.

2. If there is a large number of transactions relating to a personal deposit account

on the same day, a balance need not ordinarily be struck after such transaction, but ifthere
is any possibility of over drawal of the account, the Treasury Officer, should, by totalling
the items of receipts and repayment and striking the balance whenevernecessary, satisfy
himself that the account will not be overdrawn by making anyparticular repayment. The
Treasury Officer should invariably strike a total at the end of each day’s transactions.

3. The adjustment of cash orders issued on sub-treasuries may conveniently be

watched by opening a personal ledger for each sub-treasury. The orders issued should
bear a serial number and the amount should be credited in the personal ledger account
(FormT.A. 23)but need not beentered in FormT.A.22. When acash orderis paid at the
sub-treasury it should be entered in a separate register prescribed for the purpose (Form
T.A.V). Each entry should be dated and initialled by the Sub-treasury Officer before he
signs the pay order. The amounts paid should be debited to “Personal deposits”. After
payment at the sub-treasury, the amount of a cash order should be posted in the personal
ledger account in the district treasury as a repayment of a deposit. The Treasury Officer
should send advicelists ofthe cash orderswhich heissues to theSub-treasuryconcerned.
There should be entered in the register in Form T.A.V. in the sub-treasury.
Art.67] Accountstobe Keptat Treasuries 156

4. TheTreasuryOfficershouldpayspecialattentiontothefollowingrulesin
maintaining the Personal Deposit Registers (Forms T.A. 22, 23, 24 and 45)

(i) Forrecordingtheissueofeachordersofeachsub-treasury,afewpagesin Form T.A.

23 and a separate column in Form T,A. 22 should be maintained;

(ii) For every Court of Wards or attached estate a register in Form T.A. 22 and a
separate column in Form T.A. 24 should be maintained;

(iii) When an estate receipt is paid in at a sub-treasury an entryshould be made in

Form T.A. 22 as soon as the challan is received from sub-treasury;

(iv) Whenanattachedestatepaymentismadefromasub-treasuryanentryshould be
made in Form T.A. 22 as soon as the bill or cheque is received from the sub- treasury;

(v) When an estate receipt is paidintothe districttreasury, an entrymade in Form

TA. 22;

(vi) Whenanestatebillorchequeisabouttobepaidfromthedistricttreasury
whetherincashorbytheissueofacashcwder,anentiyshouldbemadeinFormTA.22;

(vii) Whenacashorderisissuedfromthedistricttreasury,anentryshouldbe made in

Form T.A. 23;

(viii) When a cash order is paid from a sub-treasury, two entries should be made
in Form T.A. 23 on receipt of the paid cash order from the sub-treasury;

At the close of each day, the totals of items (v), (vi), (vii) should be calculated,
care being taken not to include any items of the types (iii), (iv) and (viii), These totals
should be entered in the corresponding columns of Form T.A. 24 and the total district
receipts and payments of the day entered in the last column and in the day-book.

At the end of the month, the rejected items of types (iii), (iv) and (viii) entered
during the month should be totalled up and the total entered in a line in Form T.A. 24
below the entries of the last dayof the month. All the columns Form T.A. 24 should then
be totalled and the totals entered in Form T.A. 45, the opening balances being copied
from the closing balances of the previous month and the closing balances of the current
month calculated.

Columns 3 and 6 of Form T.A. 45 should be totalled and agreed with the total
receipts and payments shown in Form T.A. 24 and with the totals in the Posting Register
(See Local Ruling 3 under Articles 95-99 in Chapter IV) and the monthly accounts.

All items which are received or paid at sub-treasuries, i.e., items of the nature(iii),
(iv) and (viii), should be entered in the red ink so that they may be distinguished from
items (v), (vi) and (vii) which are to be carried daily to the day-book.

5. PersonalDeposits :—TheprocedureprescribedinLocalRuling1under Art.

67 (B) applies mutatis mutandis to personal deposits. The registers to be examined in this
case are:-

(i) RegisterofPersonaldeposits(FormT.A22), and

(ii) theRegisterofdailyreceiptsandpaymentsofpersonalDeposits(FormT.A.
24).
(Ruling5Ins, byG.O. Ms. No. 37, Fin. &P1. Dt.2-3-1981)
Art.71] Accounts tobe Keptat Treasuries 157

D. —CIVILANDCRIMINALCOURTDEPOSITS

Article 71. There are two methods in which the accounts of Civil and Criminal
Court Deposit may be kept.

(1) When each deposit is separately paid into and drawn from the treasury upon
documents passed by competent authority and setting forth the particulars necessary for
the entries in the deposit registers, the accounts of Civil and Criminal Courts Deposit
should be kept in the manner prescribed in Articles 64 to 77 for revenue deposits,
although the sets of registers and returns should all be separated from those of therevenue
deposits proper.

(2) IncaseswheretheCivilCourtsandMagistratesmerelybankwiththetreasury,
remitting without detail their gross deposit receipts for credit in a personal ledger, and
making repayments by cheques on the treasury, the accounts at the treasury should be
keptintheformsprescribedinArticles68and70forpersonaldeposits,butquiteseparate from
those of personal deposits proper; and the deposits should be designated as Civil Court or
Criminal Court Deposits.

Wheneverthe latter systemispermittedthedetailedrecordof deposittransactions

should be kept by the Court concerned in the form prescribed in Articles 64 to 66 for
Treasury Officer’s accounts of Revenue Deposits with such adaptations andmodifications
as may be Authorized by the competent Judicial authority afterconsultation with the
Accountant-General.

LOCALRULINGSUNDERARTICLE 71

1. (a) The first method of accounting described in Article 71 is adopted in the

AndhraPradeshStatein allmufassalCivilCourtsotherthanthosedealingwithtreasuries when
transact their cash business through the bank. The same method is also adopted in the
case of all mufassal Criminal Courts.

(b) The Treasury Officer should forward to each mufassal Civil Court dealingwith
a treasury which does not transact its cash business through the bank a weekly statement
in the following form

Amount Amount
Debit Credit
Rs.P. Rs.P.
Numberor
Numberof challan
order
Do Do
Do Do
Do Do
Balanceto Balancebrought
credit forward
Total Total

As soon as this memorandum is received, the Court should compare the serial
numbers of the challans and orders issued with those entered in the treasury statement
and, by leaving out of account those not yet included by the treasury, ascertain whetherits
accounts correspond with the treasury accounts.
Art.71] Accounts tobe Keptat Treasuries 158

3. (a) The second method of accounting described in Article 71 is adopted in the

case of Civil and Criminal Courts in Hyderabad City, and in the case of Mufassal Civil
Courtsdealingwithtreasurieswhichtransacttheir cashbusinessthrough theBank.When this
method is followed, the Court or Magistrate should on corporate in his own accounts and
returns the deposit items of the Court subordinate to him, as a Treasury Officers
incorporates in his accounts those of the sub-treasuries in his District, permission may,
however, be accorded to any particular subordinate court or courts to keep independent
accounts. Court of Small Causes keep independent accounts.

(b) Civil and Criminal Courts in Hyderabad City maintain the registers of
Receipts and Repayments of deposit separately for each class of deposits.

(c) Under this method each transaction of receipt or repayment relating to a Civil
or Criminal Court deposit should be initialled by -

(i) theJudgeorMagistrate;or

(ii) inthe caseof theHigh Court, byanygazetted officers of theCourt; or

(iii) in the case of a Court of Small Causes, unless otherwise ordered by

the Government, by a Registrar appointed under Section 13 of the
Presidency Small Causes Courts Act, 1882 (India Act XV of 1882) or
under Section 12 of the Provincial Small Causes Courts Act, 1887 (India
Act IX of 1887).

(d) The Treasury Officer should forward to a mufassal Civil Court dealing with a
treasury which transacts its cash business through the Bank a weekly statement in the
form prescribed in Local Ruling1(b) above. Assoon as thememorandum is received,the
court should check the details with its accounts in the manner prescribed in that clause. It
should thentotal up the Register ofReceipts and theRegisterof Repayments and show at
the foot of the latter, register (1) cheques issued but not paid during the month and (2)
cheques of the previous month paid during the month. The aggregate amount of the first
shouldbedeductedandthatofthesecondshouldbeaddedtothetotaloftheentriesinthe Register
of Repayments.

3. TheCourtshallprepareextractsofregistersandthelistofrepaymentsandsend them to
the Treasury. The Treasury Officer retains the documents.
[Memo.No.4507 l/Accts/64-10,Fin.,Dated 11-4-19691

4. CivilCourts’Deposits :—At theend oftheeveryquarterthepresidingJudgeof each

Civil Court dealing with a Treasury which transacts its cash business through the Bank
should recorda certificatein the following formon theExtract RegisterofReceipts
transmitted to the Treasury

“I do hereby certify that I have personally examined the Register and that the
entries are made with ‘he utmost care and regularity “.

The Treasury Officer should certify at the end of each quarter at the foot of the
consolidated extract Resister of Receipts that the Certificate is the above form was
furnished by the presiding Judge of each Civil Court in the District dealing with a
Treasury which transacts its cash business through the Bank.

Each Court should also write up a plus and minus memorandum of the balance of
deposits on the Extract Register of Receipts transmitted to the Treasury Officer as shown
below:-
Art.71] Accounts tobe Keptat Treasuries 159

Rs. Ps.
BalanceatthebeginningoftheMonth: Add

receipts during the month:

Total

Deductpaymentsmadeduringthemonth
(excluding cheques unpaid):

Balanceat the close ofthemonth:

Article 72. In States where all branches of the Civil Administration, Revenue,
Criminal and Civilareunderthesameofficer,the system maybeadopted ofincludingall
deposits of the district in one register as revenue deposits, or the Treasury Officer may
receive and keep the accounts of all such deposits in exactly the same way as revenue
deposits but in separate registers and returns under the designation of “Civil Courts and
Magistrates’ Deposits”.

E. —DEPOSITSOFLOCAL FUNDS

Article 73. The transactions of all Local Funds, including Municipal and
Cantonment funds, should be recorded in the forms used for personal deposits (Forms
T.A. 22 and T.A. 24), but should be kept quite distinct, and should pass into the treasury
accounts as Deposits of Local Fund, and not as Personal Deposits.

[For a definition of the term “Local funds” and a list of “Local Fund”, see
Instructions 1 and 2 in Chapter IV in Part III of the Andhra Pradesh Treasury Code,
Volume I].

Article 74. The transactions of each fund should be entered in a separate column
in the register (Form T.A. 24) which should provide a separate column for every such
fund in the district. Unless the funds are very few in number, there should be registersand
totals for municipal and cantonment funds separate from those of other funds.

LOCALRULINGSUNDERARTICLES73-74

A separate register containing the following columns should be maintained at

every treasury and sub-treasury for the receipts of Universities

Date of receipt …….. Amount

Number of challan......... Remark

Name of payer

(Thelast column should clearlyshow thenatureof thereceipt).

F. —DEPOSITSAT SUB-TREASURIES

Article 75. Deposits made at a sub-treasury should be brought, item by item,

through the daily sheet upon the district registers and must be numbered in the general
series. It may, however, be sufficient to enter in the district registers merely, the daily
totals of transactions relating to personal deposits such as, Wards’ Estates, Dispensaries,
Municipalities,etc.,whichtakeplaceatsub-treasuries,unlesstheAccountant-Generalfor
special reasons instructs otherwise in any case.

Article 76. When the officer-in-charge of a sub-treasury has occasion to place in

deposit items which, according to rule, should be so dealt with, and which he is also
Art.71] Accounts tobe Keptat Treasuries 160

empowered to repay on his own authority without formal authority from the district
treasury, a register of such deposits should be kept at the sub-treasury in addition to thatat
the district treasury.

Article 77. In regards to repayment, the sub-treasury account in which the credit
originally appeared should be indicated clearly so that it may be easy to trace the itemand
to charge off payment correctly in the district account.

LOCALRULINGSUNDERARTICLES75-77

1. In the Andhra Pradesh State each deposit transaction at a sub-treasury is

brought on to the district register daily from the challans and repayment vouchers
received with sub-treasury daily sheets.

2. The receipts registers and the repayment registers should be maintained in

Form T.A. 20 and Form T.A. VI respectively as at a district treasury.

SECTION4-ACCOUNTSOFRESERVEBANKOF
INDIA REMITTANCES

A. —ISSUEOFTELEGRAPHICTRANSFERSAND DRAFTS

Article 78. Particulars of all Telegraphic Transfers and Drafts drawn by

Treasuries on other Treasuries and on Offices and agencies of the Bank should be
recorded in a“Issue-cum-Drawing Schedule Register” FormT.A.25 orT.A.25-A, as the
casemaybe, in which cash drawingshould beentered in a consecutive series in theorder of
issue. Each folio of the register is perforated along the dotted line and when brought into
use the portions to the right of the line (which forms the schedule) should be folded
inwards at the perforation, a carbon being placed under it.

This register which will be separate for each financial year should be page
numbered and the pages should be ruled and lines numbered in the column headed“Name
of the applicant”. (Memo. No. I 206515261Accts/7 1-8, Finance, dated 27-2- 1974)

Article 79. The Treasury Officer (or Sub-treasury Officer) should send an advice
of Reserve Bank remittances drawn by him during the day to the treasury or bank drawn
upon in the form prescribed bythe Reserve Bank (advices of remittance sold) on the very
day on which the Telegraphic Transfer or Draft is drawn. Detailed instructions in this
behalf will be found in the Treasury Rules of Government.

[ThesearecontainedinChapterV,PartIIoftheAndhraPradeshTreasuryCode,
Vol.I]

Article 80. The total of the Column ‘Amount’ in the Issue-Cum-Drawing

Schedule Register should agree with the total receipts of the day booked under the head
“ReserveBankof India Remittances”inthecashbookandalsowiththetotalofdrawings
asenteredintheseveral advicesfortheday. Atthecloseoftheday, aftertheaccountsare
balanced, the schedule, which contains the original entries, should be detached from the
Register and forwarded to the Accountant-General on the same day. The applications for
remittances will be retained at the Treasury.

B. -ENCASHMENTOFTELEGRAPHICTRANSFERSAND DRAFTS

Article 81. As each Telegraphic Transfer of Draft is encashed, the date of

payment should be noted in the column provided for the purpose in the relevant advice,
the entry being initialled by the Treasury Officer.
Art.84] Accountstobe Keptat Treasuries 161

Article 82. A record of Telegraphic Transfers and Drafts encashed should be

maintained in a register. Register of Reserve Bank of India Remittances Encashed in
Form T.A. 26 in which Telegraphic Transfers and Drafts should be entered as they are
paid, the daily totals being earned into the cash book. At the close of the day, all
encashments made during the day as recorded in the Register should be listed in a
schedule in the form prescribed by the Reserve Bank and the schedule should be
forwarded to the Accountant-General the same day after the total in it is agreed to the
total payments for the day under the head “Reserve Bank of India Remittances” in the
cash book. The receipted drafts including payees, receipts in the case of telegraphic
transfers should accompany the schedule as vouchers.

(The day-book used in the treasuries in the State of Andhra Pradesh corresponds
to the cash book mentioned in the Comptroller and Auditor-General’s Rules).

C. —DRAWINGS AND ENCASHMENT AT SUB-TREASURIES

Article83. WhereReserveBank of Indiaremittances aredrawnbyorencashed at sub-

treasuries the sub-treasuries will maintain Register in Forms T.A. 25, T.A. 25-A and TA.
26 prepare the schedules of drawings and encashment in duplicate and submit daily the
original copy direct to the Accountant-General in the same way as district treasuries. The
Sub-treasury Officer will forward the duplicate copy of the schedules of drawings and
encashments to the Treasury Officer along with the daily lists in the usual way together
with a certificate that all the schedules for the day have been despatched to the
Accountant-General. The Treasury Officer should arrange to check the duplicate copy
with the daily lists to see whether all the schedules have been forwarded by the sub-
treasuries to the Accountant-General. He should in this way. ensure that all the schedules
are promptly sent to the Accountant-General on the same day of the transactions. Sub-
‘ treasury schedules for all the days of the month upto and including the date of closing
the sub-treasury accounts for that month should prominently marked as relating to the
accounts for that month, the schedule for subsequent days of the month being marked as
pertaining to the accounts of the month following.

(The total drawings and encashments for the day should be incorporated in the
sub- treasury accounts just as any other sub-treasury transactions).

D. —DRAFTS,ETC.,CANCELLED

Article 84. When a Reserve Bank of India remittance is cancelled, the fact of
cancellation should be noted in the Issue-cum-Drawing Schedule Register against the
relevant entry and intimation sent to the treasury(or the Bank) drawn upon, by which the
fact should be noted conspicuously on the advice originally received. The amount when
refunded by the drawing treasury should then be entered in the Register of Reserve Bank
of India Remittances Encashed and it must appear in the Register even though issue and
cancellation take place on the same day. The amount of the cancelled Draft should
simultaneously be entered in the proper columns of the schedule of Drafts Encashed for
the day in which cancellation takes place, suitable remarks being made in the schedule
indicating that the payments is on account of cancellation of a Draft already drawing by
the treasury. The cancelled Draft should accompany the schedule of Encashments.
(Memo.NO.12065/526/Accts/71-8,Finance,dated27-2-1974)

[A.Code—II]
Art.84] Accountstobe Keptat Treasuries 162

E. —DRAFTSETC.,EXCHANGED

Article 85. When a Draft is exchanged for another, the originally should be
treated and entered as a Draft presented for payment and the amount again credited as
received for the issue of a new Draft.

LOCALRULINGUNDERARTICLES 78-85

DrawingsandEncashmentsatTreasuriesservedbyTreasuryPayoffices of
the State Bank of India

The transactions should be treated as relating to the treasury concerned even

though cash is received or paid at the Treasury Pay Office of the State Bank, and the
procedure laid down for Treasury Agencies will apply.

SECTION4-A—ACCOUNTSOFMILITARYTREASURE
REMITTANCES

Articles86-88.xxxx

Article89.[Deleted].

SECTION5—MISCELLANEOUSACCOUNTS

Article90. Ineverytreasuryfromwhichrevenue advancesaremade,one ormore plus

and minus memoranda (Form T.A. 46) should be kept, in which the advance should
bedebitedand allrecoveriescredited.Oneoftheseplusandminus memorandashouldbe the
ordinary account of revenue advances; and other special accounts may be openedfrom
time to time for any special officers authorized to make such advances, who may, under
the orders of revenue authorities, keep and submit accounts separate from the accounts of
the district officer. Unless the Government requires otherwise, the treasury shall keep no
detailed accounts of these advances.

Note :—An advance held to be irrecoverable by the revenue authorities should be

written off the treasury plus and minus memorandum under the authority of the
Accountant-General; any subsequent recoveries should not effect the treasury plus and
minus memorandum but should be taken direct to revenue.

LOCALRULINGSUNDERARTICLE 90

1. In the Andhra Pradesh State, the treasurykeeps plus and minus memoranda for
the following classes of advances and other recoverable amounts:-

(i) costof surveyof estates not underthemanagement ofthe Court of wards;

(ii) advances to cultivators made by officers of the Revenue Department, the

Agricultural Department and Industries Department;

(iii) Imprestsforminorirrigation works;

(iv) survey advances;

(v) advancesunderSpecial Laws;and

(vi) miscellaneousloansandadvances.

2. Costofsurveyofestatesnot under themanagementoftheCourtofwards:-The

Treasury Officer should maintain a plus and minus memorandum for each estate for
watching the amount deposited, the expenditure recoverable and the balance available.
Art.84] Accountstobe Keptat Treasuries 163

He should enter in the debit column the amounts shown in the Survey Officer’s monthly
bills for recovery from that estate, and in the credit column the amounts already
recovered. Thebalanceon account ofeach estateshould bework out monthlyso as to see
that sufficient funds remain to cover the anticipated further expenditure. If at any time itis
found that the balance is insufficient, prompt intimation should be given to the officer- in-
charge of the survey of the estate to enable him to call for a further deposit from the
proprietor and stop the survey in default of payment.

3. Advances to cultivator :—In every treasury from which advances to cultivators

have been made, a plus and minus memorandum should be kept for each class ofadvance.
In it the amount of each advances should be debited and each recoverycredited. One of
these plus and minus memoranda should be the ordinary account of advances to
cultivators. Other special account should be opened from time to time for any special
officers authorized to make advances who may under the orders of the revenueauthorities
concerned, keep and submit accounts separately from the general accounts of the
Collector.

Every Government servant who is authorized to make advances should see thatthe
debits and credits made to his account in the plus and minus memoranda correspond
accurately with those which enter his own registers and returns. A departmental officer
should obtain from the treasury a copy of the plus and minus memorandum with whichhe
is concerned. Special care should be taken to see that, when any recovery is paid into the
treasury, the amount of principal and interest recovered are shown separately and
distinctly. The recovery towards principal should be credited both in the plus and minus
memorandum and in the treasury account, while the recovery of interest should be
credited in treasury account alone.

Advances to cultivator made bythe Director of Industries and Commerce and the
Director and Deputy Directors of Agriculture on account of pumping installations and
agricultural implements should bedebited in theplus and minus memorandum (butnot in
the body of the treasury account) on receipt of the intimations from the Accountant-
General. Repayments received by the treasury on account of such advances should be
adjusted in the plus and minus memorandum in the manner prescribed in the previous
sub-paragraph.

The departmental officers of the Revenue Department are responsible for

maintaining the accounts and furnishing the returns relating to advances to cultivators as
prescribed in the Takkavi Manual. The departmental accounts of these advances are
maintained in the Collector’s Office. They are posted from the Tahsildar’s returns of
advances and recoveries. They should be reconciled with the plus and minus
memorandum in the treasury. With a view to securing agreement between the
departmental accounts and the plus and minus memorandum, the Collector should seethat
the totals of the figures entered in the departmental accounts actually relate to the
transactions up to the dates on which the accounts of sub-treasuries and the district
treasuries were closed.

With everyreturn of “advances to cultivators” sent to a superior Revenue Officer,

a memorandum should be submitted setting forth the figures of the treasury plus and
minus account and agreeing them with the figure in the return.

4. Survey advances :—The treasury should maintain a separate plus and minus
memorandum for each survey party for advances under the head “Revenue advances -
Revenue survey advances - Survey Officers”.
 Art.84] Accountstobe Keptat Treasuries 164
A plus and minus memorandum should also be kept in the treasury for the head
“Revenue advances -Cost ofsurveymarks -Surveyofficers - NoParty” forwatchingthe amounts
recoverable by Collectors. When advances are drawn in one district on account of survey
operations in another district, the Collector should, on receipt of the monthly cost rate
statement in duplicate from the Survey Officer, forward one copy to theTreasury Officer of
his district and the other to the Collector of the district in which the survey operations take
place. The Collector of the latter district should work out the demands and effect recoveries,
and the debit of the advance should therefore be made in the plus and minus memorandum of
the treasury of this district, quoting reference to the advice from the other Collector. The debit
in the treasury account should, however, be made in the district which the advances was
drawn.

5. The provision in Local Ruling 3 regarding the submission of a memorandum giving

the figures of the treasuryplus and minus account with everyreturn of “Advances to
cultivators” sent to a Superior officer, applies also to “Survey advances”.
In order to avoid the differences between the administrative accounts and the treasury
accounts under all classes of survey advances, the departmental officers should•• see that their
accounts axe compared monthly with those of the treasury and take the necessary steps for the
removal of differences between the two sets of accounts.

6. When any advance becomes irrecoverable it should be written off the plus and
minus memorandum in the treasury under the orders of the Accountant-General after the
competent authority has sanctioned the write-off from the accounts. It shouldnevertheless be
registered by the departmental officer concerned in a separate account or record in order that
anypossible eventual recoverymaybe made. If anyrecoveryis made after an advance has been
written off the plus and minus memorandum, it should be credited as revenue in the treasury
account, but should not be credited in the plus and minus memorandum.

Article 91. In addition to the registers prescribed in the foregoing Articles, the
following subsidiary registers should be kept for the record of transactions specified against
each. Separate registers should be kept, where necessary, in State treasuries for transactions
relating to the Central Government :—

(i) Register in Form T.A. 31 for the record of the advances (other than those
mentioned in Article 90) made/recovered under the heads “Loans and Advances” and
“Advances Repayable”.

(ii) xxxx

(iii) Register in Form T.A. 33 for payments of Pensions. Separate registers should be
kept for different classes of pensions, such as pensions debitable to “268. Miscellaneous
General Services Pensions in lieu of resumed Jagirs, Land, Territories, etc.” and “266.
Pension and other retirement benefits” etc., “363. Compensation and Assignments to Local
Bodies and Panchayat Raj Institutions”, etc.;
 Art.84] Accountstobe Keptat Treasuries 165

(iv) RegisterinFormT.A.34forpaymentofCouponsonBearer Bonds;

(v) Register in Form T.A. 35 for payment of interest on Promissory Notes/Stock

Certificates.
 ACCOUNTS CODE VOLUME IV
CHAPTER 3.—COMPILATION OF PRE-AUDlT PAYMENTS

34
Introductory
35
Payments by the Pre-audit Department
36
Receipt of Vouchers
37
Debt Head Classified Abstract
38
Transfer of Schedules of Vouchers to Departmental Audit Sections
39
Closing of Debt Head Classified Abstract
Treatment of Schedules and Voucher! in the Departmental AuditSections 40

INTRODUCTORY
34. Claims of Civil Departments and of the Public Works Department in respect of other than works expenditure at
some Provincial Capitals are submitted ' to the Civil Accountant General for Pre-audit and are paid by an order
upon the Bank. The detailed procedure for dealing with such claims will be Such as may be prescribed by the
Comptroller and Auditor General elsewhere. The rules in this Chapter prescribe the procedure for accounting for
such payments and may be followed in Civil Account Offices, where the system of Pre-audit is in force, as far as
circumstances permit, but option is allowed in regard to the method of preparing and proving the abstract of pre-
audit payments; that is to say, the postings in the abstract may be made and proved at longer intervals,' provided
that these operations are carried out not less frequently than in the case of a De- partmental Classified
Abstract, namely, twice a month.
Note.—Deleted.
PAYMENTS BY THE PRE-AUDIT PAY DEPARTMENT
35. The cheques issued by the Pre-audit Pay Department should be classified' as Central or Provincial according as
they are issued in respect of Central or Provincial payments. Payments made in cash by that Department on
account of the Central and Provincial Governments should be met from Permanent Advance, held by the
Accountant .General, for making pre-audit payments. This advance should be classified as Central and recouped
by drawing Central Pre-audit cheques, adjustment being made periodically between Central and Provincial
Governments in respect of Provincial Payments met from the Advance.
Note .—At the discretion of the Accountants General, Provincial Payments made from the Permanent
Advances may be adjusted at the end of each working day by drawing of a Provincial Per-audit
cheques for the total amount of-such payments, the cheque being "crossed", and made payable
invariably by transfer credit to the Central Government under the head 'Pre- audit cheques',
 RECEIPT OF VOUCHERS
36. At the close of each day, all bills paid by the Pre-audit Pay Department should be sent by
it to the section preparing the Debt Head Classified Abstract of Pre-audit Pay Departmentwith' separate memoranda in
Form 4 for payments by cheque and those made in cash, each showing the aggregate amount of the payments in
words and figures. The memoranda for Central payment should be separate from those for Provincial payments. On
receipt of the vouchers with the memoranda the total of the payments should be checked at once in the following
manner. The vouchers as they are received "should be sorted by departments, and the payments entered by carbon
process in duplicate in the several departmental schedules of pre-audit payments (Form 5) the vouchers paid by
cheques and those paid in cash, being entered in separate parts, and the total amounts brought together at the end of
the day as shown in the form. The total net payment in these schedules should then be entered in a daily cash
memorandum (Form 6) and the grand total struck. When found correct, the memorandum in Form 4 should be signed
as "agreed" by a responsible officer and returned to the Pre-audit Pay Department as an acknowledgement for the
vouchers received.
DEBT HEAD CLASSIFIED ABSTRACT
37. After the day's payments have been examined as prescribed in the preceding Article, the total gross payments of
the day, as worked out in the several schedules (Form 5), should be posted in the Debt Head Classified Abstract of
Pre-audit Pay Department (Form 7) under the departmental suspense heads concerned, the Abstract for Central
transactions being kept separate from that relating to Provincial transactions. The recoveries and receipts shown in
the schedules should be entered under the appropriate debt, remittance and suspense heads at the bottom of the
Abstract, the total deductionsrelating to each head being posted against it. The postings should then be proved by
agreeing the net payments with the total shown in the daily cash memorandum (Form 6).
In the case of deductions from Provincial bills creditable to the Central Government, the total amount of such
deductions shall be shown under the head "Adjusting Account between Central and Provincial Governments" in the Provincial
Classified Abstract, the corresponding adjustment against the Central Government under the heads "Adjusting Account between
Central and Provincial Governments" and the relevant Departmental Adjusting Account head or other head concerned being
shown in the Debt Head Classified Abstract for Central receipts. This procedure shall apply mutatis mutandis to deductions from
Central bills creditable to the Provincial Government.
TRANSFER OF SCHEDULES AND VOUCHERS TO DEPARTMENTAL AUDIT SECTIONS
38. The Schedule of payments relating to each department should be totalled, and the upper sheets sent to the section
concerned with the vouchers appertaining to them at such convenient intervals as may be determined by the
Accountant General; but they must not be sent less frequently than twice a month. Simultaneously, memoranda of
credits should be prepared from the schedules and sent to the departmental and other sections concerned for
incorporation in their Classified Abstracts of receipts.
CLOSING OF DEBT HEAD CLASSIFIED ABSTRACT
39. At the end of the month, all the columns of the Debt Head Classified Abstract should be totalled and the amount of
Pre-audit cheques issued added to the receipt side of the abstract. In case where the cash payments on
account of Provincial are met from the fixed imprest for central payments subject to adjustment through the
clearing accounts section of the Bank, an entry shall be made on the receipt side of the Provincial Abstract under
the head, "Adjusting Account between Central and Provincial Governments" of an amount equivalent to that met
from the Central imprest. When this is done, the grand total of receipts - will be equal to the grand total of
payments, and the Abstract thus completed and proved shall be made over to the Book Section for posting in the
Detail Book.

TREATMENT OF SCHEDULES AND VOUCHERS IN THE DEPARTMENTAL AUDIT SECTIONS

40. On receipt of the vouchers, schedules, and the memoranda of credits in the
Departmental and other sections concerned they shall be posted in the departmental
abstracts in the same way as if they had been received with the accounts from a
treasury.