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/ 160
ee a
PREFACE
As a result of departmentalisation of accounts of the Union
Government (Civil) in a phased manner from 1-4-1976 and.
other consequential changes, like
(a) abolition of media of Exchange Accounts ;
(b) replacement of the system of settlement account by
va settlement through cheque|drafts in the cases of
inter-Government transactions ;
it has become necessary to revise the Account Code Vol. Iv
issued by the Comptroller and Auditor General of India.
“Account Code for
2. Consequently, this code entitled
existing Account
. “Accountants General” is in replacement of the u
by the President on the advice
; CodeVol. IV. It is prescribed
5 of the Comptroller and Auditor General of India under
Article 150 of the Constitution of India and deals primarily
with the accounts kept by the offices of the Accountants
General in respect, of the State and Union Territory Govern-
ments with which they are concerned, — besides the limited
category of Central transactions like Central Pensions.
)
oe 3. ‘The directions and instructions contained in this code
shall, however, be subject to such modifications as may
authorised by the President on the advice’ of the Comptroller
and Auditor General in their application to :—
( Accounis to be kept by the Accountant General,
J&K and the Accountant General, Sikkim.
Gi) the classification and ‘adjustment of transactions
occurring in J&K and Sikkim, relating to Central
Government or another State or Union Territory
Government ; and
(iii) the classification and adjustment of _ transactions
relating to a State occurring in the other States or
in the books of a Civil Accountant General or of a
non-Civil Accounts Officer. :
K. LALIT
Controller General of Accounts
GOCE FORKS. Cater
Place: New Delhi.
Date: 23rd July, 1984 we
(iii) e
CONTENTS
(9 1—DEFINITION OF EXPRESSIONS USED AND
COMPILATION OF DEPARTMENTAL
i ABSTRACTS
Definition of Expressions used and Introductory
Form of Departmental Classified Abstract
Procedure in posting .
Examination of Departmental Classified Abstracts
Departmental Consolidated Abstract
Posting
Review of Consolidated Abstract
(Ti itries 2 . . .
HAPTER 2.7-CLASSIFIED ABSTRACTS A}
OF PUBLIC WORKS AND Ft
TRANSACTIONS
Compl
sactions . .
Registration of Details
Works Audit Summaries
ts—Form and Method of
‘Treasury Audit Summaries of Public Works Transactions
Consolidated Abstract
Classified Abstracts of Forest Transactions
Fearn S-DEPARTMENTAL COMPILED OR CASH
ACCOUNTS
General
Compiled accounts to be rendered by
‘Departmental ‘Officers/Pay and Accounts
cers. J
Treatment of the compiled accounts
Reflection of cheques, drawn by departmental. officers in Trea-
Sury accounts and treatment in Accountant General's office
.ND SUMMARIES
‘OREST
lation of Classified Abstracts of Public Works ‘Tran-
CHAPTER 4.—STATEMENT OF DISBURSERS’ ACCOUNTS
Posting the Statement—
Treasury and Departmental Accounts
Local Remittances in Transit .
Inward Settlement Account Abstracts
Completion in thie Book Department
Check of Totals
(vy)
j
3.2
3.3
34
4.1
44
4.5
4.6
4.8 ae
} (vii)
CHAPTER 5.—INTER-GOVERNMENT TRANSACTIONS
AND THEIR ADJUSTMENTS
I Introductory
Method of Adjustment under the first procedure (Procedure of
f adjustments by advices to Central Accounts Section of
Reserve Bank of India). * .
March transactions adh ach
Register of Adjustments and Advices .
Crearance of the head ‘Adjusting Account between Central
t and State Governments’, std
|
Adjustment of pensionary charges recoverable from State
Governments but. charged in the first instance on the Con-
¥ solidated Fund of India under certain articles of the Con-
f stitution 7
Clearance of Inter-State transactions through the bank .
Monthly statement of adjustment against central balances
Form and treatment of Settlement Accounts
Form of Settlement Account :
Disposal of inward Settlement Accounts
Objections =. 6 * Sua iaes
Reserve Bank of India Remittances.
Method of adjustment imnder the second procedure (cash settle-
ment procedure) . ie * %, . .
Miscellaneous
5
5.2
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.5
5.16
to
* 5.20
5.21
5.25 eee At toy.
(ix)
CHAPTER 6,—CONSOLIDATIONS OF ACCOUNTS
Intoductory 2 we eet
Detail Book—
Form and Method bias
‘Checking
Consolidated Abstract
Form and Method of Posting =. . . . . .
Abstract of Major Head Totals . .
Final accounts for March and March Supplementary Adiust-
ments ete ae a
‘Statement of Central truneactions . * . . .
Rectification of Errors . ‘ e .
CHAPTER 7.—TRANSFER ENTRIES
Object of Transfer Entries...
General Rules eabe aliens a Sa
Correction of Accounts... eee
* Outline of Procedure . j
Closing of the Combined Transfer Ledger and Abstract .
CHAPTER 8.—JOURNAL AND LEDGER
Forms, 218, oe
Heads. ogese ee
Opening the Books | |]
Monthly Entries . . . .
} Closing the Books. . .
. JounalTotals . 5 0. 1 ee
Trial Balance Sheet . > . . .
MTOMINTy Accounts of the Central and State Governments
The Annual Accounts of the Central and State Governments
‘The Combined Finance and Revenue Accounts of the Central
and State Governments in India
Proforma Accounts .
‘Statements required in connection with the eanarasion | of the
6.12
6.13
6.15
aa
es
Combined Finance and Revenue Accounts ANNEXURE Gi)
APPENDICES
1.—RULES RELATING TO THE PREPARATION OF CAPITAL AND R5-
Venue ACCOUNTS OF RESIDENTIAL BUILDINGS =.
2.—ADMINISTRATIVE ACCOUNTS CF IRRIGATION, NAVIGATION,
EMBANKMENT AND DRAINAGE Works, Eecrricity PROJECT
AND MULTIPURPOSE RIVER PROJECTS « é “
Lisr oF Forms
Forms
PAGES
165
175
187
191 REWiatl ori F fag
wat afgan
ACCOUNT CODE
FOR :
ACCOUNTANTS GENERAL ACCOUNT CODE FOR ACCOUNTANTS GENERAL
CHAPTER 1 : DEFINITION OF EXPRESSIONS USED
AND COMPILATION OF DEPARTMENTAL ABSTRACTS
3 aay a
Definition of Expressions used and Introductory
1.1 Unless the context otherwise
Tequires, the following
expressions used in this Code have the meanings hereby assigned
to them, that is to say:
Civil Accountant General
‘Accountant General’
the Comptroller and
or ‘State Accountant General’ or
means an Accor 2 subordin;
Auditor General of India.
“Debt Heads” means the heads of account under Which ‘the
transactions of Government Telating to Debt, Lox t, Loans, Deposits,
Reserve Funds, Advances and Suspense Accounts are recor Jy:
—— a evances_and Suspense _ .
“Remittance Head” refer to heads of account to which sane]
actions relating to remittance business are taken.
mene busing
woe
Treasury” means the treasury the cash business of
which is con by the Bank, ;
“Non-Bank Treasury” means a treasury other than a Bank
Rasy j
“State” wherever used in this code should also be construed
te cover Union Territories with Separate Legislature which are
accredited to certain Accountants General, if the context impli
TTT ns General, if the context implicg.
“Sub-Accounts Officer”
fomisiccounting func
ans an Accounts Officer, who Petey
behalf of another Accounts Offi .
3 ne
a cee
5
The definitions of certain expressions given in “Chapter-1-
Introductory” of the “Form of Accounts of the Union and States
(asic) Rules 1983” apply also to the same expressions in this
code.
—/the articles in this chapter shall not apply in their entircty to
States|Union Territories where t] i y_the system
of gross accounting for all-kinds of deductions made in bills such
as those in Tamil Nadu. The Accountants General who are acc-
redited as Accounts Officers of such States|Union Territories are
authorised to make such modifications in the procedure prescribed
in this chapter, as they may deem necessary, to adopt it to suit
their local requirements,
' Form of Departmental Classified Abstract
1.2 Save as provided otherwise, transactions relating to
each Civil department or a major head of account not co-
extensive with any particular department, shall be collected for
the whole of the State[Union Territory with which an Accoun-
tant General is concerned, month to month in a ‘Departmental
classified abstract’. Separate-Departmental classified abstracts
should be maintained for ‘State’ and ‘Union Territory’ transac-
tions besides separate classified abstracts in respect of transac-
tions on account of ‘Central Pensions’ occurring in the State} ~~
Union Territory to which the Accountant General{Director of
Audit is accredited as an Accounts Officer.
Nore Jom Departmental Cagsiied _Abatract should ordinarily be
maintained for each department or major head of account, but in the case of
small departments or major heads under which the transactions are few, the
transactions of two or more such departments or major heads, may, at the
discretion of the Accountant General, be recorded in a single classified abstract.
Nore 2.—Classified Abstracts are not to be maintained separately for
major heads relating to debt, deposit and remittance transactions. Such
transaetions appearing in the Treasury Cash Accounts and List of Payments
and in the Departmental and other abstracts shall be collected from month
to month for the whole circle of account under each major head of account in
a Detail Book (see Chapter 6).
24 Fin [84-2 7
ate 2 :
1,3, Each Departmental Classified Abstract shall consist of
seven parts :—
On the Receipt side—
qa) Detail of Revenue —A vertical column should be pro-
vided, in the prescribed order, for each detailed head opened
under the major and minor heads relating to the abstract and
a number of columns in their proper places for the total re-
ceipts of a treasury, etc., under each minor head. In abstracts
where transactions under more than one major head are in-
cluded, there will be columns for major head totals also, In
the case of big departments, an abstract of minor head totals
may be prepared in the same form at the end and the major
head totals worked out there, Horizontally, a line should be
Provided in the abstract for each treasury, then as many lines
as the Accountant General may deem necessary for entering
receipts transferred through suspense slips from the Setile-
ment Account and the abstracts of other Departments;
Transfer Ledger and Abstract prescribed in Article 1.19
SS ee
In their proper places, lines are provided for totals of the
treasury transactions and for grand totals,
(2) Detail of debt, deposit and remittance receipts brought
to account through the departmental abstract. This will be in
the same form as part (I) of the abstract.
(3) Detail of recoveries from payment vouchers.
On the Disbursement side :—
(4) Detail of expenditure—The arrangement will be simi-
Jar to that of part (1). !
45) Detail of debt, deposit and remittance disbursements
brought to account through the—departmental abstract—The
arrangement will be similar to that of part (2).
OE he '
(6) A proof sheet for the receipt side, for each month
showing (i) total revenue; (ii) total debt, deposit and remit-
tance receipts; (iii) total of (i) and (ii); (iv) total amount of
the detailed head concerned under the suspense head “Depart-
mental Adjusting Account’; (v) total under the minor head
“Refunds”; (vi) total amount of cash recoveries taken in re-
duction of expenditure in the Departmental Abstract for the
payments; (vii) total of (iii), (iv), (v) and (vi); (viii) total de-
ductions from payment vouchers taken as receipts ; (ix) net
Adjustments through the Combined Transfer Ledger and Ab-
Stract, (x) the total of (vii) minus (viii) plus or minus (ix)
which should agree with the aggregate of the certified total of
the treasury schedules of receipts and of the suspense sips
fepresenting items transferred from other sections,
(7) A proof sheet for the payment side similar to that for
receipis.
of Procedure in Posting
1.4.
On receipt of the schedule and vouchers in the comi-
lation group of the Treasury|Departmental Audit Sections, the
Departmental Auditor, should compare the vouchers with the
schedules, ascertain that none are missing and arrange them in
the-order of majot and minor heads, He should then proceed
with the Compilation work and posting of the Departmental
Classified Abstract, After the compilation for either schedule of
payment is over, the Vouchers should be transferred to the
Audit Group of the Treasury|Departmental Audit, Sections,
Gazetted Audit Sections and other Audit Sections for audit. ee ee a ee
}
iL
hese 1.—The Accountant General may, at his discretion, allow direct post
ing of the Consolidated Abstract without the intervention of Departmental
Classified Abstracts in the ‘heads of account where the transactions are
limited and such direct posting is not attended with any risk or incovenience.
Nore 2.—The term “Departmental auditor” occurring in this and other
Axticles of this Volume refers to the’clerk attached to Compilation group of
the Treasury/Departmental Audit Section of a State Accountant General's
t office who complies Departmental Abstract,
The term “Gazetted Audit Department” used in this Article and elsewhere
im this code refers to the section in an Accountant General's office
which audits the claims of Gazetted officers.
S; 1.5. The amount of payments relating to each detailed head
except the head “Refunds” with the numbers of the vouchers
pertaining thereto should be entered in a Compilation Book
(not standardised) separately for each schedule, and the total
amount of payments under each head cayried into the “total”
column. It will, however, be sufficient to enter the total pay-
ment under the detailed head, with the number of letter of
the treasury schedule, in cases in which a schedule gives the
gross amounts of all vouchers classified under a single head.
‘The gross, and not the net amount of the voucher should be
taken as the amount of the payment relating to the head _ con- ey
med, even though certain charges on the voucher may have
een placed under objection;~Gut when a recovery relating to
to the same detailed head the net amount should be taken. See
also Article 1.21.
Nore 1.—To facilitate posting each detailed head should be given a guide
letter or a guide number, ail the detailed heads in an abstract within the minor.
head of an abstract being given numbers or letters in a consecutive series.”
‘A symbol may be assigned to each detailed head if this course is preferred.
_xGre 2.—As form of Compilation Book is not standardised, the Accountant
General may, at his discretion device the format and prescribe the manner
and the details to be recorded therein, according to local requirements. roe ee ee Oo ee ee, he ee ke
13
1.6 Such of the deductions shown in payment vouchers as
have not been initially credited by transfer to the receipt heads
concerned in the treasury accounts should be recorded in part (3)
of the abstract.
wm 1.—Recoveries which are creditable to any of the detailed heads
inder the major head to which the payments on a voucher relate as well as
recoveries which are creditable to another major head, the Departmental
Classified Abstract in respect of which is not separately maintained from the
major head to which the payment on the voucher relates, should not be treated
a3 deductions for purpose of this Article, See also Article 1.21.
Nore 2.—Deduetion shown in payment vouchers for subscriptions to
Provident Funds, which have not been accounted for as receipts in the treasur
‘Accounts should be recorded in an appendix in Form A.C, the deductions
for each fund being posted and accounted for separately. From this appendix
the total deduction foreach fund relating to each district should be brought into
the Deduction Register [Part(3) of the Abstract] and shown in the latter dis-
tinctly from deductions credited through the Treasury Cash Account. The
appendix should then be passed on the Fund section Witfra Certificate fo the
effect that the totals agree with the credits in the departmental abstract.
The appendix supported by the requisite schedules may be-sent to the Fund
section in two parts; the portion relating to the first schedule of payments being
sent with a certificate of agreement after the compilation of the vouchers of
that schedule and that relating to the second schedule into which the total de-
ductions of the first part also should be brought in order to. give the monthly
total, after completion of the departmental accounts,
Ile term “Fund Section” used in this note denotes the section in an Account-
* ant General’s office which maintains the accounts of subscribers to the General
Provident Fund and similar other Funds,
eRe Nt aaa ee
7 When all the vouchers of either schedule of payments
‘e been posted in the Compilation Bgok, the column show-
ing the total unde} each detailed head should be summed up,
and, if the working is correct, the total should agree with the
total of the schedule of payments after (a) deducting from the
former the aggregate amount shown as deduction from vouchers
for credit in Part (3) to Provident Funds, etc. and (b) add-
ing to the result the amount of payments on account of sefunds
of revenue.
———— 15
Nore.—In the case of account which can conveniently be proved with
the total payments of the months as entered in the second schedule of pay-
ments, because of the small size of the department or the small sizeof the dis-
trict or for any similar reasons, the proving of posting in the Compilation Book
for cach schedule may be forgone at the discretion of the Accountant General.
~18 When the entries against a treasury in the Compila-
tion Book have been posted and proved, the payments for
the month at the treasury under each detailed headexcept
“Refunds” should be brought together in the Compilation Book
for the first schedule. The monthly total under each head
should then be posted in parts (4) and (5) of the abstract.
~/the month’s total payments as shown’ in the second schedule
of payments should also be posted in part (5) as a Minus entry
under the_suspense_head “Departmental Adjusting | Account”
of tho Departint,
4G After the postings in parts (4) and (5) have been
completed in the manner described above for each treasury,
the detailed items should be independently cast across the
pages to the total column and, if the entries have been mado
correctly, the total of both the parts against each treasury will
agree with the difference between fhe amount of (a) recoveries
from payment vouchers for credit to Provident Funds, etc., as
posted in part (3) and (b) payments at the treasury on ac-
count of refunds of revenue as posted in part (1).
1.10 When the departmental schedule of receipts of a
treasury has been examined as to correctness of form and classi-
fication and the classification of the items appearing under the
head “unclassified receipts” has been supplied, the amounts
shown in the schedule should be entered against the treasury
concerned under proper heads on the receipt side of the abs-
tract, those relating to_part (3), being posted therein and the
rest in parts (1) and (2). The total amount of payments ap-
pearing in the two payments schedules of the treasury on ac-
time in the relevant columns of part (1). The total receipts Sicilia
ee
ee eS ee
17
as shown in the receipt_schedule should then be posted as_a
minus entry under the suspense head “Departmental Adjusting
Account” of the department in part (2).
11 When the payment vouchers of both schedules of pay-
ments, as well as the schedule of receipts from a treasury, have
been abstracted, the recoveries and receipts shown in part (3)
should be transferred to parts (1) and (2), the total relating
to cach head alone being posted against it.
1.12 After the postings in parts (1) and (2) have been
completed in the manner prescribed in the two preceding Arti-
cles for each treasury, the detailed items should be cast across
the pages to the total column and, if the entries have been made
y, the total against each treasury should be equal to the
diference Detween the amount of fun alse ne =
recoveries from the payment
Vouchers posted in part (3).
Shs After the grand total of the transactions in all trea-
Suries under each head has been made in parts (1), (2), (4)
and (5), it shall be necessary to post all adjustments made
through departmental abstracts, so that the departmental abs-
tract should include monthly all transactions, of whatever
nature, connected with receipts and Payments of the depart-
ment. These will be posted from the Compilation Book in
the case of suspense slips, i. s
Ledger and Abstract of the department, additions or deductions
as _the case may be, bei under the various heads con.
Smee being made under the various heads con
SS
1.14 The final stage in the completion of the abstract is
the preparation of the proof sheets in 6) and (7) as
prescribed in Articles 1,3, 1.6 and 1.7.
Examination of Departmental Classified Abstracts
~-, 115 On completion, the Compiliation Book, the Appendix
Teferred to in Note 2 under Article 1.6 and the Departmental
Classified Abstract accompanied by schedules of receipts and
- 19
Payments, vouchers and all supporting documents should be
made over to the Section Officer who should carefully — test-
check the postings in the Compilation Book, the Appendix and
the Departmental Classified Abstract. The Classified Abstract
80 checked by the Section Officer and duly passed by the Gazet-
ted offieer-in-charge should be utilised as the basis of the
Consolidated Abstract.
Note 1.—The term ‘Section Officer’ or an ‘Accountant’ incharge used in
this code means a section officer or an ‘Accountant’ incharge ofa section or _sub-
section in an Accountant Generals Omice,
~/Note 2.—The Section officer and the Gazetted Officer Incharge of the com-
pilation Group should be held Tesponsible for the correctness of the posting in
the compilation book in respect of items of over I~ and Rs, 10,000/-
respectively under any detailed ead of account and foie eee
in the danied Esra eo SPUN nd forthe racing OTE SAE
Nore 3.—In regard to receipts the treasury accounts rendered to Accountant
General’s Office indicates in the receipt schedules the receipts classified by
Major, Minor and Detailed Heads of accounts without ‘details of individual
receipts. In respect of receipts which cannot be so classified, full details are
fornished separately on the basis of which the receipts are classified in Accounts
Offices under the relevant Major, Minor and Detailed Heads of Account
Tf these details are found to be inadequate, complete details have to be obtained
from the concerned authorities for correct classification of the receipt trane-
actions in question. ~After classification of the receipts, the receipt schedules
together with the Compilation sheet and other supporting documents should be
submitted by the Departmental Auditor to the Section Officer/Branch Oificer
for check of the classification to the extent prescribed for the purpose.
—__——_— tat piescribed for the purpose
~~ Departmental Consolidated Abstracts—Form and Method of
Posting
16 (a) The next process shall. be the Preparation, in Form
(AC.22, af the Departmental Consolidated Abstracts of ~ re-
Venue receipts and service payments as brought to accouni
provided: for Tam preoe under major _ heads,
minor heads, sub-division of a minor head iled heads.
gressive totals under each sub-head of a Grant or unit of ap-
Propriation, against which appropriation audit is required to be 21
condusted Progressive totals for each sub-head of a Grant
or unit of appropriation and for each major head should al-
ways be filled in, but in other cases progressive totals may be
filled in at the end of the year or whenever they are necessary
to supply departmental requisitions, to facilitate watch over
actuals, or for any other purpose. Unmecessary totalling should
be avoided wherever possible.
ee
(b) Every head of account, under the Revenue and Service
heads concerned, for which a column is provided in the De-
partmental Classified Abstract, must appear in the Departmental
Consolidated Abstract also, and against it must be entered the
total of the month’y-entties as there recorded. = =—=~S~S#
-17 The totals of the receipts and payments should then
be checked with the corresponding totals in the Departmental
Classified Abstract and, when these are agreed, the Consolidat. A)
ed Abstract should be sent to the Book Section. Similarly,
afler the preparation of March Final Accounts, the Consolidated
strac sent to the Book Section for the action indi-
cated in Article 6.12.
“Note 1—No. separate Consolidated Abstract need be prepared for the
transactions brought to account in the Classified Abstract of treasury payments
of the Public Works Department. The transactions should be incorporated in
the “General Consolidated Abstract of Public Works transactions
which tay be maintained either in the compilation group of the
Treasury/Departmental Audit Sectionor-inthe_works Audit Depastment
Novg 2.—The term “Book Section” or “Book Depariment’” wherever used
in this Code means the Section or ent of an Acceuntant General’s
office which prepares consolidated monthly and annual accounts for the
account circle -as_a whole.
he term “Works Audit Department” wherever used in this Code denotes
the Sections in a Civil Accounts ice Which compile the Classified Abstracts
ieview_of Consolidated Abstract
1.18 The section officer should scrutinise the Consolidated
Abstract intelligently and see whether the figures-under any
head are so abnormally high or low as compared with those of the
24 Fin./84—3 . 23
previous months as to raise a doubt whether there has been
misposting|misclassification. If any doubt is aroused, he
should carry out the necessary scrutiny with reference to the
details of the doubtful item and should satisfy himself about
the correctness of the figure before submitting it for the ap-
proval of the Gazetted oflicer-in-charge.
Transfer Entries
1.19 Corrections and adjustments within a departmental
account should be effected by means of transfer entries. in
accordance wiih the procedure Jaid down in Chapter 7. If an item
in a transfer entry has to be taken to a head in another
Departmental account in the accounts of the same Govern-
ment_it should be classified in the transfer entry as_ ‘pertaining
to the suspense jhead “Departmental Adjusting Account” DA: AE
relating to the other department. The transfer entry with the
necessary suspense slip should then be sent, for acceptance
and return, to the section which maintains the Detail Book
or Departmental Abstract in which the transferred j i
be Tinally adjusted under ihe proper Toad When wehad
back with the acceptance, the transfer entry will be posted
in the Combined Transfer Ledger and Abstract in Form A.C. 25.
The section to which a transfer entry is sent with a suspense
slip for acceptance should retain the suspense sip and deal
with it in the same way as if it had been received with the
departmental schedules of a treasury.
Me an item of receipt + Payment relating to the
Ceitral Government (other than Central Pensions) is wrongly
included in the schedule of State receipts or payments, the
amount should be credited or debited as the case may be,”
to the Suspense head 8 Susp ccounts PA‘ nse SSB
—items adjustable by Ministry| Department in the State classified
Abstract”, At the same time, the relevant particulars of
receipts[payments should be passed on to the section dealing
with inter-Government_Settlement Accounts in the the office 25
(whick is generally called Account Current’ Section) for
eventual Cash settlement with the concemed Pay and Accoiinis
set forth in Article 5.16 of chapter 5 of this code. ‘This
procedure applies mutatis mutandis when an item of State
receipt|payment is wrongly included in the schedule of Central
Loi or payments (except the Central, Pensions). 7
n respect of items of receipt|payment relating to Central
Pensions wrongly included in the State schedule of receipts|pay-
ments the amount should be credited or debited as the cast
may be, to the head ‘886 Adjusting Account between Central ©
and State Governments’ in the State Departmental classified
Abstracts _of pensions. At’ the same time, the Departmental
Auditor concerned will prepare a transfer entry for incorpora-
tion in the Central Section of Accounts in which debit or
credit for the amount in question, should be given to the
tiead “Adjusting Account between Central and State Govern-
ments” by corresponding credit or debit either to the appro-
priate trial head of account_or to the relevant Departmental
Suspense head, as may be considered necessary or suitable-
Except as provided otherwise (vide second sub-para of Article
5.5 of-chapter-Sy this transfer entry should invariably be
included in the Central Accounts of the same month. This.
procedure applies mutatis mutandis when an item of State
pension receipt|payment is wrongly included. in the schedule
of Central receipts|payments.
1.21. The recoveries of overpayments whether made in
cash or from payment vouchers shall be posted direct under-
the service head concerned in the Compilation Book as
reduction of expenditure irrespective of whether they relate
to overpayment pertaining to the current year or to: any previous
year.
nore .—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
separote adjustment is necessary. See also Article 1.5.
BS CHAPTER 2—CLASSIFIED ABSTRACTS AND SUMMA-
RIES OF PUBLIC WORKS AND FOREST TRANSACTIONS
Compilation of classified Abstract of Public Works Transactions
er a a ts Sn TR eer
~/2.1 Transactions of the Public Works Department” take
place in the Treasuries as well as in the various Public Works
Divisions. Transactions occurring at treasuries and included in
the accounts rendered by them are dealt with in Accounts
Offices in the manner prescribed in Chapter 1. The accounts
received from the Public Works Divisions after preliminary
examination in regard to classification shall be posted = in
the Public Works Classified Abstracts which shall be. prepared
in a form similar to that of other Departmental Classified
Abstracts
“In he Public Works Classified Abstract, the total receipts
and disbursements shown in the accounts of the various
Public Works Divisions and the supporting schedules shall_be
collected month by month under the major, minor
detailed heas unts cont . As only the decrease|in-
crease in cash balances during a month is shown in the
receipt|payment side of the Divisional Accounts the differences
between the opening and the closing balance shall be credited|
debited under the head “871—Departmental Balances—Civil:
Public Works cash balance”, thus seciiring agreement of the|
tals of receipts and disbursements in the classified abstract.
Registration of Details |
2.2. The Classified Abstract should be the main record, so
far as the entire account circle is concerned, in respect of the fol-
lowing :—
receipts of the undermentioned classes, classified
under major, minor, sub and detailed heads :—
Revenue Receipts ; .
Receipts and recoveries on Capital Account; *
27 29
refunds of Revenue, classified under major, minor
sub and detailed heads ;
(3) other expenditure transactions, classified under major
and minor heads, and such other heads of account
as are declared fo be units of appropriation, or are
distinct suspense heads ;
wa) debt head (including remittance) _ transactions,
classified under major and minor heads and sub-
. divisions of minor heads.
Works Await Summaries
he The Accountant General, shall at his discretion, pres-
cribe the amount of other details to be recorded either in the
classified abstracts or in the subsidiary summaries maintained
in the Works Audit Department -known as the Works Audit
Summaries, ¢ information contained in these summai may
be utilised for preparation of the statements required for Fiance
Acceunts and the Combined Finance and Revenue Acdeunts
of the Central and State ee Chapter 9) as
any proforma annual accounts (See Appendices 1 and 2).
~/ divisional summaries are prepared monthly or. as often in
a year as may be necessary for the purpose of either furnishing
statistical information required by Government or of facilitating
“preparation of State Summaries. If the preparation of State
Summary becomés necessary monthly or oftener than three or
four times in a year, it will be convenient to record all the details
in the Public Works Classified Abstracts. At the close of the
year it is essential that the total of the transactions of the year
fer the entire circle of accounts under each head excluded from
the classified abstract should be worked out through Works
Audit Summaries, 31
2.4 The summaries prescribed in the preceding Article should
be prepared as indicated below — ——@
(a)/in respect of transactions of the classes enumerated
below—from the audited Divisional Schedules per-
taining thereto (See Chapter 4 of Voume HI of
Account Code)— Thee ye ha
Revenue and other receipis ;
Suspense Accounts ;
Deposits; ey
Takavi Works Advances ;
efunds of Revenue.
(bin: respect of other transactions (including works
expenditure included in the accounts of Deposits
and Takavi Works Advances) from the Works Audit
Registers prescribed by the Comptroller and Auditor
5 General, which show all the necessary totals includ=
ing those for detailed heads of expenditure subordi-
A nate to each unit of appropriation.
2.5 The forms of the summaries may be prescribed by the
of revenue and expenditure transactions connected with works
of the Central Government Departments such as Military Engi-
neer Services, etc., the execution of which is entrusted to the
Public Works Department_as_a standing arrangement, and for
which the Accountant General_acts as a@ Accounts Officer
tained or compiled wherever necessary, for furnishing such
accounts or statistical information as may be required by the
latter Accounts Officers or other Authorities,
“An writing up the summaries, the arrangement of the pres-
cribed major, minor and detailed heads should be observed
strictly; and, as far as possible the results brought out should
be reconciled with the corresponding figures in the relevant
Classified Abstract, the responsibility for this agreement being
Placed on a member of the superintending staff. ¥, 33
Treasury Audit Summaries ef Public Works Transactions
2.6 Revenue and expenditure transactions of the Public
Works Department which are ght to account direct em the
books of the Accountant General will not enter the Monthly
Accourts of Divisional Officers and will, therefore, be excluded
from the Works Audit Registers as well as the summaries ef
the Werks Audit Department, These transactions should erdi-
narily be entered -in the Departmental Classified Abstract in
full detail, but if the Accountant General finds it mere con-
venitnt, the details“below the units of appropriation may be
excluded from the Departmental Classified Abstract, in respect
of expenditure transactions, provided that suitable summaries
are maintained in the Departmental Audit Sections in respect of
the excluded details, Subsidiary registers will, in any case, be
necessary to summarise in detail, the receipts relating te pro-
jects for which separate revenue accounts have to be maintained
(vide paragraph. 8 of Appendix 2).
Consolidated Abstract
2.7 The next process shall be the preparation of the Cease-
lidated abstract of the State Public Works transactions as brought
to account in the monthly Classified. Abstracts. The Consolidat-
ed Abstract shall be in’ the same form as the Consolidated
Abstract for other Departments (vide Article 1.16) and the
transactions brought to account in the Classified Abstract of
the treasury payments of the Publi ‘ks Department shall
also be incorporated in this Consolidated Abstract,
‘Classified Abstract of Forest Transactions
2.8 The transactions of the month shown in the Divisional
Accounts should be posted in a Classified Abstract for each
Eorest Circle. The transactions accounted for by the Forest
Officers under the heads “Book Transfers—Government of the
State of—” should be shown by the Accountant General in
the Classified Abstract under the head “Inter-State _Suspease
Accounts”, The Classified Abstract should contain columns in » this review,
35
" which can be exhibited the transactions of each Forest division
in each month and also separate columns fur the exhibition of
monthly progressive totals of the Circle. It should open with the
cash balance of each division as brought forward from the pre-
vious month’s account, and the resulting balance should be
proved by comparison with the total of the cash balances as
certified in the Cash Accounts of the several divisions,
——_ eee
“49 On completion, the Departmental Classified Abstract,
accompanied by the schedules of receipts and payments, you-
chers and all supporting documents, should be made over to the
Section officer, who should carefully check the classification of
receipts expenditure. The Classi ittact_so checked
and passed by the Gazetted Oificer-in-charge should be utilised
as the basis of the Consolidat
lore I.—For the purpose of this Article, the classification entered on the
Vouchers which the Section Officer and the Gazetted Officer have:checked as
Part of their concur review may be-treated as checked for the purpose of
ihe 2.—The Section Officer and the Gazetted Officer should see that the
posted in the Classified Abstract. In the case of those vouchers the audit
of which is permissible affer compilation of the accounts, this check may be
exercised at the time the vouchers’ are reviewed. The Postings of Gazetted
Audit voucher shouldbe checked to the elGRPOPthe vevion dene Inne
tted Audit Department and the postings of the pre-audit vouchers shouldbe
checked to the extent of the review prescribed for post-audit vouchers teceive
checked 10 the extent of the review prescribed for post-audit vouchers receiv
with the treasury schedules.
~ 2% The accounts of the month being thus proved, the
Classified Abstract should be utilised as the basis of the Consoli-
dated Abstract which should be compiled through a- separate
Classified Abstract in which the total state figure under each
head shal] be worked out, The Accountant General will lay
down the detailed procedure for the compilation of, and the
extent of the details to be recorded in the Consolidated Abstarct. 37
2.11 The accounts of Forest Officer’s transactions should
be incorporated in the accounts of the month to which they
yelate, and no departure from this rule should be permitted in
respect of the accounts of any division except in unavoidable
circumstances, such as very late receipt of the Divisional Offi-
cer’s Cash Account.
24 Fin,/84—4 _aarrer 3—DEPARTMENTAL COMPILED OR CASH
ACCOUNTS
General
3.1 Besides the treasury accounts, the divisional
accounts of Public Works and Forest transactions, accounts are
received from certain other departmental officers for the depart-
mental commercial undertakings, such as departmental Milk
Scheme etc., functioning under them and from Pay and Accounts
Offices of State Governments functioning at their State Capi-
tals.
€ompiled accounts to be rendered by Departmental Ovticers|
eye —Reccunts OR
3.2 In such cases, ‘the concerned Departmental Officers|
Pay and Accounts Officers are placed in funds with the bank
directly by ernment through the Accountant General
‘or otherwise, are empowered to draw money by chegues
upon the bank for their requirements with reference to bills
“drawn by them, These officers render monthly compiled account:
(along with or without the vouchers] schedules as may be decid-
ed in each individual case), and a Iist-showing the particulars
of cheques drawn by them.
\Trreatment of the compiled accounts
3.3 These compiled accounts of departmental officers and
of the Pay and Accounts Offices are to be dealt with in the same
manner as treasury accounts, Classified and consolidated abstracts
should be prepared in form similar to those described in Chapter
1 of this Code, The expenditure shown in these compiled ac-
counts of departmental officers are to be brought to account
under the relevant major|minor/sub-head of account, affording
contra credit to the. head 310—Cheques and_bills—Departmen-
tal_cheques’_or ‘Pay and Accounts Office cheques” as the case
may be, wilh suitable: subsheads-being opened Tor-cach specified
department or scheme, The Pay and Accounts Offices, however,
39 41
| Aric all the functions of a State Treasury and also render
compiled accounts to the Accountant General. SOS
Reflection of cheques drawn by departmental Officers in Trea-
sury accounts and treatment in A.G’s Office
V: 3.4 The paid cheques pertaining to departmental officers
received from the bank by the treasury (or by Pay and Accounts
Office), will be forwarded. to the Accountant General along
with the daily scrolls, after being accounted for in the list of
payments by the treasury (or by the Pay and Accounts Office
in the compiled accounts) as debits under the head “870—
Cheques and bils—Departmental cheques” and sub-head cor partmental cheques’ and sub-head con-
cerned, The credits and debits under this head will be linked
in the Accountant General’s Office, A suitable broadshi will
be maintained by the Accountant General for watching the final
adjustment and outstandings under_the head ‘870—Cbeques
and bills—Departmental cheques’. ........ 0.002.000
@e. relevant sub-head). < fenarrnr 4-STATEMENT OF DISBURSERS’ ACCOUNTS»
Posting the Statement
Treasury and Departmental Accounts
4,1 The last stage before handing over’ the Cash Account
and the List’ of Payments of a treasury to the Book Department _
should be the posting of the balances and the totals in the Stato-
* ment of Disbursers’ Accounts, This statement should be main-
tained in Form A.C.2 separately for Central and State trans-
actions. Each district auditor, as he completes his examination
of a treasury account, should post in the Central or State State-
ment, as the case may be, the entries of Central
‘ions relating to the treasury, the figures being taken from the
losing Abstract appended. to the Cash Accounts.
“* Nore.—The term “district auditor” used in this Article is the designation
“Othe clerk in a Civil Account Who is responsible for {the adjustment
he entire treasury account of a district.
/ 4.2 Similarly, each auditor, as he completes his Depart-
mental and Debt Head Abstract, should post-in the relevant
Statement of Disbursers’ Accounts the total receipts and pay-
ments which must be equal, from the receipts-and payments
abstracts respectively. If the finbek GF deparohental saects
in an account circle is large, a separate sheet in Form A.C.2
may be maintained for the departmental abstracts alone and the
totals from this sheet may be posted into the main form.
~/43 The entries in the Statements of Disbursers’ Accounts
should be made in the same order as is observed in the Cash
Balance Report, The Bank Account should come first, and after
it the district accounts, the Départmental Adjusting Accounts,
and the various departmental accounts in detail; but, as the
Bank Account, the Departmental Adjusting Account and the
43 aera
48
various departmental accounts have no balances, ‘the ° only
columns to be filled in against them will be the receipts and di
bursements columns, the entries in which will be equal.
Local Remittances in Transit
4.4 Next in order to the departmental accounts should come
the head “Remittances in Transit—Local”, which, being a minor
head under major head “899-Cash Balance”, functions like
a disburser of officer holding a portion of the Government balanc-
es. Its opening balance will be the amount of Jocal remittances
in transit at the beginning of the month, and its closing balance
that outstanding at the end of it ; and these amounts taken from
the Remittance Check Register maintained separately in a pres-
cribed form should be posted accordingly. The entire amount of
the opening balance should then be posted. under. disbursements,
and that of the closing balance under receipts (care being
taken that the amounts entered here as receipts and disbursements
are also posted into the Detail Bool receipts and disburse-
ments, respectively, under the head “Remittances in Transit—
Local” per contta debit or credit to the head “Ca: ittances
(Grant tenet Account Abstracts
ttlement Account Abstracts
4,5 The totals from the Abstracts of In Settlement
Accounts should then be posted in the relevant statement
Completition in the Book Department
4,6 The Statements of Disbursers’ Accounts must _be com-
pleted in the Book Departme: the entry in them of the
ants Wi SSintO the Detail Books through the Combined
Transfer Ledger and Abstract. An abstract, in the following 47
form, of the entries in that Abstract must be drawa up at foot
of that document :
Debits
Ay a8 D
Deduction | Additions | Additions | Deductions
from to | to from
Receipts | Disburse-~ | Receipts | Disburse-
ments: | ments
|) ORs P. | Rs. PB
323 0| .. | Revenue Heads /
1,247 0) Service charges 7a 0
1,117 0 | Debt and other heads
wes 7 0
2,364 0 OTAL
| 2,687 0 | Total Debit and 2,687 0
| | Credits. +
| | fe
Column C diminished by Column A. - es 1648
Column B diminished by ColumnD-. se se 4,643
J whe figures are inserted to show how the calculations should
be made. Those in the first three lines should be taken, by total-
ling, from the Combined ‘Transfer Ledger and Abstract; the fifth
ling will be found, on each side, Dy adding the pair of figures
in the fourth line and must be agreed, before going further, with
the totals of the Combined Transfer Ledger and Abstract; the
figures in the sixth and By
subiraction, from the «fourth.
2 ‘The figures in the last two lines (which will be equal) should
be posted in the Statement of Disbursers’ Accounts against the
or eo
head “Transfers”,
‘Nore.—In the Account office where the departmental system of account
is followed the drawing up of the abstract may be discontinued at the discre-
tion of the Account Officer 49
f; Lastly, the balances under the head “Reserve Bank
Deposits—State” should be entered in the State Statement, the
debit or credit balances under this head being entered in the
colump “Receipts” or “Di ts”, as the case may De, am
the closing balance of the previous month being entered in the
column _ opening balance. Care should be taken to-enter in the
(Deiat Book) agains the head “Reserve Bank Deposits” under
Receipts or Payments, as the case may be, the amounts shown
in the Statement of Disbursers’ Accounts under this head,
“3 ~otfack OF TOTALS
—48 The Statement thus prepared will bring together the
aggregate of the months’ receipts and payments with the opening
and closing balances of all officers rendering accounts to the
Accountant General, and so furnish an effective check on the grand
totals of the several Consolidated Abstracts as made out in. the
Abstract of Major Head Totals prescribed in Article 6.10. The
latter shows the amounts received and paid on all accounts, the
Statements of Disbursers’ Accounts the amounts received and paid
27 all Accountants. The grand totals of receipts and payments in
both should therefore be equal. y Soyer
CHAPTER 5. INTER-GOVERNMENT TRANSACTIONS
THEIR ADJUSTMENTS
I—INTRODUCTORY
5.1 The general outline of the procedure connected with the
settlement of transactions betwee,
a State Government and the
elegrapl efence) and between one State Government
and another is set forth in this chapter. There are two procedures
which are adopted in dealing with such settlement, as indicated
. below :— TEE ae
of: (i) By sending advices to: the Central Accounts Section
of the Reserve Bank of India, Nagpur, by the
Accounts Officers concerned to inor decrease the
balance of the Government concerned per contra
decreaselincrease of the other Government, with
reference to the vo ichedul
culars_of jovernment transactions,
initially treateq generally as— ance _trans-*
actions? by the Civil Accountants Genera =
drafts being exchanged en the Accounts officer,
initially. the amount;
concerned, keeping
‘Suspense’ ing clearance ofthe same
4 realisation of proceeds of such cheques}dra‘
ndin;
he first procedure is in_the following cases in Civil
Accountant; +
(a) Accounts of ‘Inter-State Suspense’ (ie.) transactions
between States mter=se-——————_
cy Repayments of loans taken by States from the
Central Government and of the payments of interest
thereon by the State Government to the Central
Government, Ministries|Departments;
yarti-
51 53
’c) The special case of pensions, (including commuted
value) in respect of retired High Court Judges paid
through State Treasuries or Public Sector Banks,
which are, under certain constitutional provisions, re~
quired to be ‘charged’ on the Consolidated Fund of
India, pending recovery of equivalent amounts from
the States |. (Details of procedure in this
. 5 regard are indicated in Article 5.8 below);
ate Transactions connected with ‘Reserve Bank of India
| Remittances” occuring in State Non-bankin; a
a HE
_/ Such other cases as may_be specifically prescribed by
the President on the advice of the Comptroller and
Auditor General_of India.
The second procedure _of a settlement by exchange of
cheques|drafts by the Accounts Offices concerned is adopted in all
Giher cases of inter-Government transactions between State|Union
‘Tértitories, on the One hand and Central Government (including
Railways, Posts and Telegraphs and Defence)-on-the other,
Method of adjustment under the first procedure (Procedure
of adjustments by advices to Central
Reserve Bar
ccounts Section of
5.2 All transactions adjustable between State Governments
inter-se, and between a State Government and Central Govern- eer
iment covered by this procedure (briefly cited as RBA. advice vice
rocedure) shall be initially b to account in the State Section Prue tin
of Account under the heads “Inter-State Suspense” or “886-2716
Adjusting Account between Central and State Governments”
respectively, as the case may be. In respect of the head “Inter-
State Suspense Accounts” there shall be sub-heads for each State
GF _— $$$ aia
In respect of “Adjusting Account between Central and State
Governments”, for each item of creditldebit there shall be a
cor onding debit-credit under the same head in the Ceptral
BAS 55
mn of Accounts, The contra credit}debit in “the Central
Section of Accounts should be to the appropriate final head (e.g.
in respect of “Central Civil Pensions” transactions occuring
through State non-banking treasuries|sub-treasuries) or to such
Debt, Deposit, Suspense and Remittance Heads as are authorised
for operation in the Central Section of Accounts of the Accoun-
the mis General).
Eee as original credit or debit appearing under the head “adjusting
‘Account between Central and State Governments” in the accounts of a Go-
‘vernment will denote the amount payable by or to that Government, (6 oF
by the other Government, Wi
a % Central transactions, which are initially accounted for
under “Adjusting Account between Central and State Govern-
ments” in terms of article 5.2 obove, and-which are frequently
fequited to be settled weekly or at other prescribed intervals with
~Jhe balance of the Central Government with the bank, during the
course of a month, without waiting for the closure of a month’s
account, should be consolidated by the Accountant General in
Part-I of the Register of adjustments with the Reserve Bank
(Form _A.C. 3) and advices should be sent by him in Form 4
at periodical or other prescribed intervals, to the ‘Central A
counts Section of the Reserve Bank of India, Nagpur, (briefly
cited as C.A.S., R.B.I. Nagpur) for making necessary transfers
of the balances between the ‘Central’ and ‘State’ Governments,
Other Inter-Government transactions including those relating to
Cee ee ee at aime nes
Treasury[Department of other inward settlement Accounts, or
originating in the books of the Accountant General by transfer
entries, should usually be advised to the CAS, RBI, Nagpur for
adjustment once a month as soon as the accounts of a month are
dosed. By mutual agreement between State Governments con-
cerned and in consultation with the Bank, arrangements may,
. however, be made to cect adjustments through the Bank at
More frequent intervals, in the citcumstanc t, Qype aac MY Qe rh Dror tore
bat advices are issued by the ‘Accountant Ge General_creditin; -
head ‘Central Accounts Office—Reserve Bank Suspense” Sede Puke Bebe
1 /858-Suspense Accounts’, per contra debit to the relevant Publici, . ase Sho
DebilInterest Head. The clearance of the Suspense head is effected :
on Teceipt_of the clearance memo from the Bank, by minusfoc- ese Su-te~
‘editing the suspense head “Central Accounts Office-Reserve| cv. weas-
jank Suspense” per contra credit to “875-Deposi iS BES
Bank—Reseive Bank Central Accounts Omice”———
eee
Sia The Central Accounts Section of the Bank will carry out
the adjustments in the accounts of a month, if the necessaty
advices relating to that month are communicated to it not later
than the 7th of the succeeding month, the advices issued on that
; date by distant States being sent by telegram, oe the 7th ©
eacl a RCE is day, if
the y, a memo b ly be
sent fi the Central Kosouit Section of the Bank intimating the
number and date of the last advice sent to the Bank for adjust-
ment in the accounts of the previous month. The speci OCecur
| for sending advices in respect OF Marct-ransactions 1s tale tomn
in the following Article.
Larch transactions
hs Inter-Government adjustments in respect of transactions
pertaining to a financial year will not be carried out_by the
Bank in the accounts of that year, if the necessary advice is aot
sent by the 25th of April of the succeeding year at the latest.
Special steps should therefore be taken to collect and settle so
far as possible all cash and book transactions involving inter-
Government adjustments that originate towards the close of the
year and to advice the necessary transfers to the Central Accoun
' Section of the Bank by the 25th April. The Accountant General 59
should obtain in proper time from Treasury officers and Depart
mental Disbursing Officers rendering accounts to Him, returns of
inter-Government transactions taking place in March in advan
oF the submission of accounts for that mont
ment transactions thus collected from the different sources and
those arising from a preliminary audit of treasury and depart-
mental accounts for March should be advised in batches to the
C.AS., Reserve Bank on the 5th, 15th and 25th of April, by
telegram, if necessaiy, or on the previous day if any of these
dates is a holiday; for necessary adjustments against the balances
of the Governments concerned in the accounts of March. An
advice of adjustment should invariably be sent to the C:A.S.,
Reserve Bank of India, Nagpur, on ¢ach of these dates, a nil
statement being rendered when there are no adjustments to be
communicated. The last advice to be issued on the 25th of April
should include a certificate of the Accountant Genera] that no
further adjustment will be intimated to the Bank for inclusies
in the Accounts of the previous financial year.
As inter-government transactions pertaining to a financial
year will not be settled and finally adjusted in the accounts of
that year if they come to notice after 25thr April of the following
year they. should be left outstanding under the head ‘Adjustine
Account between Central and State Governments’ in the section
of the accounts in which they originate or under “Inter-State
Suspense Accounts’, as the case may be but care should be taken
to see that these outstandings are cleared at the earliest possible
opportunity in the accounts of the following year through the
requisite advices to the Bank.
Register of Adjustments and Advices
5.6 As Jaid down in Article 5.3 above, after consolidating the
transactions involving adjustments between the Central and State
Governments through the Bank in Part I of the Register in Form
A.C. 3 in the appropriate columns, the net total of the debits
and credits worked out in this part should be taken at the end
of each prescribed period (which may be less than a month), 6
to part II of the Register in which the un-adjusted balance of
the previous month ‘under the head ‘Adjusting Account between
Central and State Governments’ as worked out in part II of the
Register should also be bidught forward, Adjustritnts between
Central and State Governments which are initiated by the
Accountant General with the Bank, without passing on the trans-
actions initially through the head ‘Adjusting Account between
Central and State Governments (vide Exception below Art. 5.3)
shoulg also be entered in part II in the appropriate columas.
Advices of adjustments in Form A.C. 4 should then he prepared
on the basis of figures worked out in this part (part-II) and sent
to the Central Accounts Section of the Reserve Bank of India
for necessary transfers between the balances of the Central and
State Governments.
Part III of the Register should bring together the credits and
debits under the head ‘Adjusting Account between Central and
State Governments’ brought to account from all sources in the
State Accounts and abstracts of several sections of the office.
‘The credits and debits worked out in this part in a month should
be agreed with the State Detail Books for Receipts| disbursements
under the head. The unadjusted balance at the end of the month,
should be transferred to Part I of the Register of the next
month, for inclusion in the next advice to the Bank.
Not !.—Part II of the Register may at the discretion of the Accountant
General be posted direct from State Detail Books (Parts & 11); in that case
the unadjusted balance at the end of the month worked out in the Register
should be agreed with State Ledger (Forms A.C 27, 28)
Note 2.—The totals of credits and debits appearing under the* tied “Ad-
justing Account between Central and State Governments” appearing in th
State Section of accounts of an Accountant General should agree respecti
with the totals of debits and credits under'the same head in the Central See
tion of Accounts every month. The Accountant Gener al should see that
this agreement is effected every month. In making this agreement, allowance
should necessarily have to be made for differences which may arise in certain
cases, for example, in the accounts of March, differences may arise owing to OTB aE FB Ge a eg FO ge Ee
a
vas of a year between Central and State Governments
which dome to notice after the 2Sth April of the following year may be ad
wustes under this head in the Central/State section without a correspondins
cdvustihent being made in the State/Central section pending clearance in (he
following year's accounts videyArticle $.5.
the fact that trans
Nore 3.—The advices of adjustments in Form A.C 4 relating to @ finan-
cial year issued to the Bank should be numbered serially for each month
F Anns of
tween Central_and
cad ‘Adjusting Account_be!
‘State Govecnment
wo ——
x
> When a State Accountant General
from the Central Accounts Section of the Bank in Form AC 5
that adjustment against the balances of the. Central Government
aad of his State has been made in its books as ad sed by him,
the net debit or credit adjusted by the Bank against the balance
of his State should be credited or debited in the State section of
his accounts to the head ‘875-Deposits with Reserve Bank 8675"
Reserve Bank Central Accounts office, by per contra adjustment 8726
against the head ‘Adjusting Account between Central and State
Governments’. At the same time the State Accountant General
chould clear the outstandings under the Head-‘Adjusting Account
between Central agd State Governments’ in the Central Section
of his accounts by debit or credit to the head “875-Deposits with
Reserve Bank—Reserve Bank Central Accounts Office’.
elves intimation
In respect of adjustments against State balance initiated by
the Central Accountants General, the outstanding under the
heag Adjusting Account between Ceniral and State Governments
should be cleared by them on receipt of the clearance memoran-
dum from the Bank (Form A.C 5) per contra debit or credit to
the head ‘875-Deposits with Reserve Bank—Reserve Bank
Central Accounts Office”. 65
