Unit – 1

Introduction

1. What is Government Accounts?

The accounts maintained by the three levels of Governments in India namely: The
Central Govt, State Govts and Local Govts to record and maintain a track of their
transaction is known as Govt Accounts.

2. Mention the forms of Govt Accounts.

a. Revenues.
b. Advances and loans.
c. Recoveries of loan granted by Govt.

3. What are objectives of Govt Accounting?

a. To record all the financial transaction of Govt.
b. To record the Revenue and Expenditure of the Government.
c. To control govt expenditure, does not exceed the limits predetermined by the budgets.
d. To ensure that the govt expenditure is incurred as per the procedures, policies and
rules of the Govt.
e. To avoid the misuse or misappropriation of Govt properties through systematic
records. This includes cash and stores also.
f. To facilitate the auditing of books and accounts.
g. To provide ready data for the decisions by the govt.
h. To help in the preparation of financial statements and reports.
i. To facilitate the preparation future budget.

4. What are the features of Govt Accounts?

a. Explains fund utilization: Government Accounts explain the utilization of funds to
achieve the objective of social benefit and is not aimed at knowing profit or loss
position.
b. Compliance Factors: Govt Accounts are prepared to comply with or fulfill the
procedures, policies and rules and regulations of the Govt.
c. System of recording Double Entry System: All Govt Accounts are recorded and
maintained under double entry system.
d. Creation of Budget heads: The various expenses are classified and brought under
specific budget heads.
e. Budgetary control: The Budgets are used as yardsticks to compare with actual
expenses and achieve the cost control.
f. Banking / Banks are the medium of Transactions: All the Govt transaction are
supposed to be carried out through the banks only leaving very exceptional cases.
g. Regular Audits: The Accounts maintained by all Govt offices are subject to audit by
the concerned Govt department of audit.

5. Differences between Govt Accounting and Commercial / Private Accounting.

Sl no. Head Govt Accounting Private Accounting
1 Meaning Accounts are known as Govt Accounts are known as
 Accounting. Commercial Accounting.
2 Objective To know the use of fund to To know the profit / loss and
achieve social benefit. financial position.
3 Budget Govt Accounting strictly Private accounts may or may
Adherence follows the budgets. not follow budgets strictly.
4 Method / Follows cash basis / method. Follows accrual method.
Basis of
Recording
5 Scope Financial and non-financial Only financial information.
information.
6 Levels of Govt Accounting follows two No such multiple levels are
Accounting levels, namely Central level followed.
and operating level.
7 Rules and Governmental rules and Accepted Accounting
provisions provisions are strictly Principles or Accounting
observed. Standards are observed.
8 Auditing Audit is conducted by the Auditor is conducted by a
Auditor General official of professional Auditor.
govt.

6. How many parts are there in Govt Accounting?

There are three parts in Govt Accounting:
 Consolidated Fund.
 Public Account Fund.
 Contingency Fund.

7. What are three stages of Govt Accounting?

a. Collection.
b. Processing.
c. Reporting.

8. What is the scope of Govt Accounting?

a. Scope of Government accounting is General Administration.
b. It includes financial and non-financial information.

9. What is the origin of Govt Accounting in India?

Govt Accounts were maintained from Ancient times in India. Kautilya’s Arthashastra had
defined procedure of maintenance of Govt Accounts.

10. What are the factors for evaluating Government Accounting?

a. Transparency in public Administration.
b. Accountability in public Administration.
c. Implementation of Internal Auditing.
d. Efforts in External public Auditors.
e. Performance based and multi-year budgeting activities.
f. Efforts in Govt Accounting and Auditing.
 g. Transition to integrated Accounting in the public sector with the impact of
Technology.

11. What is the purpose of Govt Accounting?

To carry out financial transactions of Govt in a timely, efficient and reliable manner.

12. How is income classified and sub-classified in Govt accounting?

a. Tax Revenue.
 Taxes on income and expenditure.
 Taxes on capital expenditure and property.
 Taxes on commodity and services.
b. Non-Tax revenues.
 Interest Receipts.
 Divided and Profit.
 Other Incomes.

13. How is expenditure classified?

a. General Services.
 Administrative Service.
 Defence Services.
 Servicing of Debts.
 Fiscal Services.
b. Social Services.
c. Economic Services.
d. Grant-in-Aid and Contributions.

14. What are the Principles of Accounting?

a. Responsibility for Govt Accounting: This lies with Audit and Accounts Department
other than Railways, defence and transactions outside India.
b. System of Accounting: The Govt usually follows single entry of accounting. In some
cases, where the arithmetical accuracy is to be ascertained double entry principle is
followed.
c. Commercial Enterprises under public sector: Double entry system under mercantile
basis is followed in case of commercial enterprises under public sector. This is to
ascertain the profit / loss and financial position of such enterprises.
d. Classification of Income and Expenditure:
Incomes Expenses

Tax Revenue Non-Tax Revenue

Social General Economic Grant in Aid &

Services Services Services Contributions
 e. Consolidated Transaction: In Govt Accounting, initially the transactions are
recorded under various heads of accounts and later consolidated to show the results
for a period.
f. Technical Accounts: The accounts of Govt are prepared under Single Entry but in
order to prepare a set of accounts Double Entry System is followed. The technical
accounts include Journal and Ledger.

15. What is Fiscal Transparency?

Fiscal Transparency refers to the publication of information or data on how Govt raise,
spend and manage public resources.

16. What are four pillars of Fiscal Transparency or Fiscal Transparency code?
a. Fiscal Reporting [Pillar i].
b. Fiscal Forecasting & Budgeting [Pillar ii].
c. Fiscal Risk Analysis & Management [Pillar iii].
d. Resource Revenue Management: This is to establish a transparent framework for the
establishment and use of public revenue.

17. How accounts act as a tool of fiscal transparency?

a. Accounts provide reliable data of public revenue.
b. Accounts provide reliable data of public expenditure.
c. The comparisons can be made about the fiscal budget and actuals to know the
deviation.
d. An account strengthens the fiscal transparency.
e. Such accounts help in monitoring and achieving improving the fiscal policy in future.

18. Explain the three types of the Govt.

a. Consolidated Fund of India: It is the account of the revenue of the Govt of India
receiving money through the various tax and non-tax revenue sources and the
expenses incurred excluding exceptional items. For ex: Direct taxes, Indirect taxes,
Dividend and Profits from public Sector undertaking and so on.
b. Public Account: A Public Account is an Account which shows the funds received on
behalf of Govt of India. Public Accounts Funds do not belong to the Govt but have to
be ultimately refunded to the persons who deposited those funds. For ex: Provident
Fund, Small savings A/c and so on.
c. Contingency Funds: A contingent fund of India is an imprest fund for the nation and
enables the Govt to meet unforeseen expenditure which can’t wait for the approval of
Parliament. For ex: Expenditure during natural Disasters like floods and famines.

19. What is Government Accounting?

It’s the scientific procedure of collecting, classifying, recording, summarizing and
interpreting all the financial transactions i.e. revenue and expenditure of all govt offices.

20. State the meaning of Govt in Financial Rule and Explain Rules.
a. The Audit report of Govt societies or Autonomous bodies should be placed on the
table of House i.e. Parliament legislature.
 b. Approval of Union Cabinet should be obtained in each of sale or long term lease of
land or belonging to the Govt bodies.
c. Approval of finance ministry is a must for the sale / grant/ allocation of any Govt
assets created from Govt funds.
d. Any assets must be purchased after the publication of a tender.
e. The audited accounts of any voluntary organization receiving grants from Govt
should be placed on the table of the house.
f. Any purchase of goods for use by govt should be after tender.

21. Central Govt Receipts and Payments Rules.

The following are the Rules of Central Govt Receipts and Payments Rules:
a. It Regulates the consolidate fund of India.
b. It Regulate the contingent fund of India.
c. The payment of moneys or flow of money into such funds.
d. The withdrawal of moneys or flow of money out of such funds.
e. The custody of Public moneys other than those credited to such funds received
f. The Central Accounts Section Nagapur is responsible for keeping the complete
accounts of receipts and payments in respects of all of the above accounts.

22. What is suspense account?

Any transactions of Receipts and payment which cannot be specifically classified and
brought under a head of account due to lack of information or ambiguous information,
they are kept under intermediary heads known as Suspense Account/ Suspense heads.

23. ACCOUNTING RULES 1990.

 Accountant General is the head of office of accounts and works under CAG of India.
 The rules are applicable to all organizations except Railways, Posts,
Telecommunications and defence to which special provision are applicable.
 Bank means SBI which acts as the official banker or RBI for the transactions of Govt.
 The accounts are classified into Consolidated fund, Contingent fund and Public fund.
 Cash basis of accounts is followed and in Public Commercial Enterprise, mercantile
system is followed.
 The ledger and journal maintained under Govt accounting is known technical accounts.
 The Annual accounts [including Appropriation A/c] of the Central Govt, each State and
Union territory is prepared in the form prescribed by the President on the advice of
CAG.
 Proper accounts should be maintained for recoveries of over payments, if any, made by
the Govt.
 Cost of survey and other scientific expenses of the defence department are met by Govt
of India.
 Unit -2
BUDGET & FINANCE

1. What is an Appropriation Account in respect of government?

The account which shows an amount that is credited to a Government department is
known as Appropriate account. It come to recognition while preparing government
budgets.

2. What is Appropriation Bill?

The Appropriation Bill is a law that authorizes the expenditure out of government funds.

3. What is vote on Account?

A vote on account is an interim permission to spend an amount against a proposed budget
allocation.

4. What is Revised estimate?

A revised estimate is a review of the expenditure in the middle of the year against the
balance of expenditure during the year.

5. What is Supplementary Grants?

The additional or further or excessive grant required to meet the government expenditure
is known as supplementary grants.

6. What is Excess Grant?

Excess Grant is the additional money given to the government when the money already
allocated is not sufficient and further amount is solicited.

7. What is Re-appropriation para?

Re-appropriation para is the note which authorizes the transfer of funds from unit to
another unit of appropriation or head of account by the competent authority to meet an
expenditure.

8. What are the stores?

The expenses towards utilities, operating supplies and consumable / maintenance items
are known as stores.

9. What is works?
The total of various construction, Engineering activities is called works.

10. What are the rules about cash in Government office?

Group A & Group B Employees can carry cash upto 10,000/-
Group C & Group D Employees can hold cash upto 5,000/-

11. How loss of public money / property is to be dealt?

Any loss of public money or shortage is reported to next higher authority, statutory audit
officer or principal accounts officer even if it is made good by the party.
12. What is contingent expenditure?
An expenditure which is not estimated is dependent on some contingent events is known
as contingent expenditure.

Unit 3 & 4
Accounting for Rural Local Govts & Accounting for Urban Local Govts
1. What is Panchayat Raj System or Rural Local bodies?
a. It is a system of promoting local self-governments at village levels.
b. It is the system of decentralizing the administration to grass root levels.
c. The economy becomes strong only when the roots are strong.

2. What is the three tier Panchayat Raj system?

Three layers of local Government which includes:
 Zilla Panchayat – District Panchayat.
 Taluk Panchayat – Panchayat Samithi.
 Village or Gram Panchayat.

3. Mention two objectives of Panchayat Raj System.

a. To decentralize administration.
b. To make the local government self-reliant.
c. To create Gram Swaraj.

4. Mention any four committees.

a. Balwant Rai Mehta Committee.
b. Ashok Mehta Committee.
c. G V K Rao Committee.
d. L M Singhvi Committee.

5. Any two functions of Gram Panchayat?

a. Collecting tax, fees and other revenues from villages.
b. Providing water, sanitary and such basic facility in villages.

6. Any two functions of Taluk Panchayat?

a. Enrolment of schools.
b. Construction of Individual or group latrines.

7. Any two functions of District or Zilla Panchayat?

a. Advise state Government on the fund allocation to Gram Panchayats.
b. Supervise the working of Taluk Panchayat and Village Panchayat.

8. Mention any four sources of revenues of Gram Panchayat / local bodies.

a. Tax.
b. Fees.
c. Grants.
d. Advertisements.
9. Mention any four expenses of Gram Panchayat or local bodies.
a. Salaries and Wages.
b. Maintenance expenses.
c. Depreciation on equipments.
d. Education expenses.

10. What is Priasoft?

Priasoft is a Panchayati Raj Institutions Accounting Software. It aims at Centralized
Accounting of Receipts and Payments of Panchayat Raj Institutions.

11. What is Panchatantra software?

Panchatantra software is a software which is developed to promote transparency in
administration and governance and make available all the necessary data by the click of
mouse.

12. What are the three tiers of a urban local body?

a. Mahanagar Nigam – Municipal corporation.
b. Nagar Palika – Municipality.
c. Nagar Panchayat – Town Panchayat.

13. What is meant by DMA Chart / DMA organization chart?

DMA Chart means Directorate of Municipal Administration Chart that explains the
structure of Urban Local body.

14. Any two functions of Urban local bodies.

a. Regulation of land use.
b. Water supply.
c. Fire services.
d. Public health.

15. Mention four standing Committee of Urban local bodies.

a. Education and Health Standing Committee.
b. Agricultural and Industrial Standing Committee.
c. Finance and Audit Standing Committee.
d. Social justice Standing Committee.

16. What Fund Based Accounting system?

Fund based accounting system is a system of accounting by creating certain specific fund
and relating the receipts and payments related to such fund.

17. What Urban Local body?

A small local body that govern a city or town with specific population is known as Urban
Local body.
 Unit – 5
Audit of Government & Local Bodies
Meaning: Government audit is an audit conducted to ensure that the social welfare has been
uplifted in a given period through various activities of different types of govt or different layers
of govt.
Origin of government audit: The govt audit came into existence on the account of following
factors:
 With the increase of democratic govt, it called for public accountability to report about
the performance of such govt.
 The financial stakes involved in the govt organizations necessitated the performance
evaluation in the evaluation in the systematic way to ensure the upliftment of social
welfare.
 There was a necessity to compare the plan and performance of such govt undertakings.
Types of govt audit:
 Compliance Audit: It is an audit conducted to ensure that the various rules and
regulations, contractual obligations, provisions of any law or legislation procedure, if
they are not properly observed, it is the duty of the auditor to enlighten such limitation in
the audit report.
 Financial Audit: Financial audit is to ensure that the finance is used properly for the pre-
determined purpose or channels, the auditor has to confirm that the specific grants are
appropriated towards the specific programs and properly authorized and accounted.
 Performance Audit: A performance audit is to ensure that the system is working
efficiently to result in expected end result and the auditor must check whether such
expected end result has been achieved and if not, what are the possible causes so that an
improvement can be made in the future.
 Transaction Audit: A transaction audit is an audit conducted for all the transaction of a
certain period or some specified transaction based on some criteria. It is to ensure that the
transactions are legal and proper and to ensure that the organizational result would be
achieved.
 CCO Based Audit [Chief Controlling Officer]: CCO based audit is an audit conducted
on the direction of CCO of the auditor general office of the govt. this audit normally
conducted when the CCO has sufficient proof to believe that the things are normal in a
particular govt department or office.
 Thematic audit: The thematic audit is the in depth audit conducted to bring into light any
abnormalities which may involve in one or more entities or departments. An auditor
would go and audit the accounts to identify any serious error or a fraud. This is not a
normal or periodic audit and it is conducted in special or emergency situation.
 IT Audit: An IT audit is the audit of informational technology. The infrastructure
development and the effective utilization of IT in implementing the various schemes of
the govt.
 Employee welfare or benefit Audit: An employee benefit audit is an audit conducted to
ensure that a proposed benefit has been actually passed into the employees he should
ensure that the benefit to the employees has been helpful to boost up their efficiency.
Objectives of govt audit: The following are the important objective of govt audit:
 To ensure that procedure or other formalities are duly observed in the contact of
activities.
 To ensure that any payment is made out of the authorized funds or pre-determined funds,
an off-hand payment is not allowed in the govt departments.
 Every payment must be authorized by an official before it is disbursed.
 To ensure that payments are properly classified as capital and revenue and recorded as
per canons of accounting.
 The auditor has to ensure that the receipts are properly classified into capital and revenue,
any capital receipts must be added to specific fund or a fresh fund should be created if it
is not already existing.
 To ensure that the stock and stores are properly accounted and valued. The accounting
and valuation of stock and stores in the most scientific way would protect the public
wealth.
 To ensure that all the expenditure is in the public interest.
 All the amounts due to the govt should be properly recovered and the auditor should
ensure that amounts received are duly credited to the accounts concerned.

Private Audit & Govt Audit: difference:

Sl Basis Private Audit Govt Audit
no
1. Appointing In case of the owner will appoint The auditor is appointed by
authorities the auditor. the govt on the advice of
In case of partnership partners Comptroller and Auditor
will appoint the auditor. General.
In case of company and
societies, the auditor is
appointed in general meeting.
2. Person who The auditor is an external party The audit is conducted by the
carries out who is an qualified CA or Cost employees of the govt.
audit Accountant.
3. Type of audit It is always periodical audit, but
It is a continuous audit in the
for certain exceptional cases. case of govt organizations.
4. Payment of The remuneration is fixed by theThe govt. which appoints the
Remuneration owners of the business on the auditor would also fix the
appointment. remuneration.
5. Submission of The audit report is submitted to The audit report would be
Report the owner of the business presented to the head or chief
proprietor, partners or BOD. of the dept whose Accounts
are audited.
6. Presentation of The audit report would be The report would be
audit report presented in the meeting of the submitted in the parliament -
partners or members. if it is central govt
undertaking, in state
legislative – if it is state level
undertaking & to the bodies,
 if local govts – if it is local
organization.
7. Preliminary In private organization there is A treasury officer, either
examination no preliminary examination of actual or designated always
any transaction and its owner conducts a preliminary
discretion. examination of all
transactions.
8. Qualification A qualified CA or Cost Any govt employee [AG
of auditor Accountant is eligible to become office] are eligible to conduct
auditor and conduct the audit. a govt audit.

Scope of govt audit: The scope of govt audit covers the various areas in the process
conducting audit:
 The procedures: While conducting a govt audit, it should be confirmed that all the
procedures that all the procedures are systematically followed. There is no scope for
flouting the procedures.
 Policies: A policy defines how a task should be performed a govt auditor should
ensure that the various relevant policies are duly observed and followed.
 Rules: It define do’s and dont’s of an organization a govt auditor must verify that
these do’s and don’t’s rules clearly followed by the organization subject to audit.
 Technology: The govt auditor should ensure that infrastructure exist to acquire and
use the latest technology and the technology is been put into use.
 People: The govt audit covers only those people who are employed by any govt
department or govt ministry. It may include people employed in central govt or state
govt or local govt. The activities of govt employees only is covered under the govt
audit.

Characteristics of govt audit:

 A govt audit evaluates whether the standards are accepted principles of the system has
been followed and to report any deviation which are cognizable. The idea is to improve
quality of the system.
 Impartial process or activity: A govt audit is impartial process in the sense that the audit
is commenced with a trust on the work of the employees no negative presumption is
made any deviations from the accepted principle are being brought to light.
 It is a reporting activity: An auditor can only report on the work he has audited he can
make suggestions, indicate corrective actions to be taken any other comments towards a
positive end he has no authority to implement any of his recommendations.
 Its comparison process: An auditor compares the actual work done with the standard
practices or accepted practices. Any deviation which are cognizable are reported with
suggestions to improve.
 It is a protection process: Through govt audit various public properties and resources are
being protected by ensuring that their utilization or appropriation is proper and in the
public interest.
Benefits / role of govt audit: The following are the benefits of govt audit:
 It improves the financial performance of the organization: Though audit the efficiency of
the employees is measured and reporting qualifications are made regarding area of
improvement and there by overall efficiency and financial performance is lifted.
 It prevents or reduces the fraud: Through govt audit it is possible to detect the frauds
which may be committed by bureaucratic or the concerned officials. Detection of frauds
is useful to save loss of revenue to the govt and there by improve the social welfare.
 It protects public money and public property: Through govt audit the public money flow
to the wrong areas and the swindling of the public property is been protected in so many
cases the govt audit is able to bring to light the misuse of public money and public
property and protect them in the public interest.
 It develops an internal control system: Through govt audit it is possible to build up a
good internal control system after an audit an auditor would suggest the improvements to
be affected in the policies and procedures such as improved would prevent or reduce the
wrong usage of the public resources.
 It enhances the external functions: A govt audit steps up the efficiency of the govt
organizations it also influences the external agencies to step up their level of performance
and reduction of the cost of operations. Many external or private organization are
compelled to become cost effective over a period of time.
 It improves economic structure of the society: When the govt audit becomes the part of
the system it is useful to create a sound economic system and improve the economic
structure of the society. All the economic resources are properly protected and also used
to enhance the social welfare.

Professional Ethics: The term professional ethics refers to the generally accepted standards of
professional and personal behavior by professionals. The professional ethics acts as guiding
factors of the behavior while executing the professional duties or otherwise.
The following are some of the professional ethics:
 Integrity: A professional auditor must be very loyal for his profession and to its clients he
must provide the best service to protect the interest of his service to protect the interest of
his clients at no point of time he must get yielded to any kind of attractions.
 Principle of objectivity: A professional auditor must be objective in his outlook in
carrying out of his professional duties, the purpose for which the auditor is taken up
should be his prime mover of his work he should not be influenced by any subjective
factors like the relationships, influence, monetary consideration so on, he must do his best
to be transparent in executing the professional duties with the objective in the mind.
 Professional competence: An auditor must be highly knowledgeable in the area in which
he is working he must have a expertise knowledge of accounting, tax matters, supporting
legislations, supporting software in the modern days and any related area to give the best
service to his clients. He must be so capable or competent has to install confidence in the
minds of his clients.
 Confidentiality: The professional must maintain the confidentiality about all the aspects
of his clients the various points which comes to his knowledge has a professional council
should be kept as top secret should not be shared or leaked with other clients or other
people. This would add to his reputation only decided cases can be quoted, but not
undecided instance as it would endanger the interest of his clients.
  Professional behavior: A professional must have a dignified behavior physically and
professionally his language of expression, his body language physical posture, and such
are credentials must be such has to emulate him or follow him he must be able to present
himself with lot of dignity and honor.
 Compliance of social behavior: A professional must comply with all the requirements of
a good social behavior as everyone is a social being by such a social behavior he is
identified as a part of society.

Professional threats: An auditor has to be impartial objective and fair in his approach while
auditing the client’s organization he has to be frank enough to express a true and fair view of
state of affairs in his report. But in some situation, he is hindered not to be unbiased and be
partial in his report and such situations or instance are known as professional threats.
The following are the instance of professional threats:
 Self interest threat: In some situations, the auditor would not express his opinion as
frankly as he should have done because he posses an interest as a partner or ex-partner or
director or ex-director or officer or ex-officer or any kind of personal benefit accrues to
him or has accrued to him. These factors of personal favour or benefit which would make
him not to express things as they are is known as self interest threat or professional
interest threat.
 Professional review threat: An auditor may sometime make a review of his own work or
report or statement in the past in such a situation the auditor holds back from making an
impartial report or expression and is known as professional review threat. He would
present an altered report to hide his mistakes in the past.
 Advocacy threat: Sometimes, the auditor would have given advices on certain factors or
issue or would have made certain recommendations which may not have resulted in the
expected level of success while analyzing the reasons for the failure of his advocacy, he
would not be frank or cannot be frank about his own mistake and such a threat is known
as advocacy threat.
 Familiarity threat: Sometimes, the auditor and the client would be so close and familiar
that the auditor will not be able to express his true opinion on the true state of affairs such
previous knowledge or friendship or close relationship which alters his audit report is
known as familiarity threat.
 Intimidation threat: In some situation an external party would threaten either morally or
physically to make the auditor to alter his report or adjust his report to the liking of such
external party and such a threat is known as intimidation threat.

Audit of Panchayat Raj Institutions: The audit of Panchayat Raj Institution is conducted u/s
14,15,16,17,18 and 19 of the CAG [Comptroller & the Auditor General Act and rules there and
all the Panchayat Raj Institution must be subjected to annual audit under these rules.
 Audit u/s 14: An audit u/s 14, a subject to the following aspects:
 The annual year period should be clearly defined and the financial year of the
govt should be the annual year for all the local bodies under very rare situations
an alteration may allowed subject to the prior approval of the consult authorities.
 The Quantum of grant, the amount granted and released the sponsorship, the
amounts and sponsorship directly from the central govt should be properly
recorded this is to ensure that a proper control is maintained over the grants which
 is a critical component of local bodies and will be useful for the development of
the local areas.
 A list of all the Village Panchayat’s must be maintained along with their accounts.
This will be useful to commence and complete the audit in a systematic way.
 Audit u/s 15: Under section 15 the audit conducted include the following:
 Full details about the various grants received or sponsorship received should be
kept ready as a statement.
 The authorities have a direct access to the books or documents to ensure that
everything is proper by instant visits.

Procedure of audit of bodies: The following procedures should be followed in the local bodies.
 The date of commencement of audit should be intimated in advance this will help for the
preparation to present the accounts and documents so that the audit is conducted in a
scientific way.
 An audit program has to be prepared to commence and finish the audit work in a
systematic way.

General auditing of Panchayat Raj Institutions and the aspects to be covered there: The
following aspects has to be covered in the audit of Panchayat Raj Institutions:
 The various procedures laid down under the specific orders or by the CAG are followed
or not should be checked.
 The policies which are pre-decided are duly observed or not should be ensured.
 The various receipts and payments should be properly accounted and authenticated.
 Special care must be taken to audit the grants received during the audit period.
 The utilization of grants for the general or specific purpose as per the notification should
be ensured.
 Any other area specifically assigned particular period should be properly inspected and
reported.
 Property like Equipments and Buildings should be audited.

Audit report: After the audit work is completed, an auditor would prepare and present a report
to the authority which has appointed him under the CAG Rules. If all the points or the area of
audit are properly carried out he gives a clean report stating that all the aspects are duly fulfilled.
If any of the requirements are not duly satisfied, the auditor would give a qualified report
with audit objections and attaches audit paras.

Audit objections: During the audit the auditor may come across certain areas or aspects not
fulfilled by an organization or a department of a govt such area or aspect of non-fulfillment of
the credentials are known as Audit objections. The audit objections may fall under one of the
following areas:
 Any financial irregularity identified and pointed out by the auditor that is misuse of
funds.
 Non- compliance of the pre-determined procedures.
 Non-fulfillment or breach of policies like reservation policy, purchase policy so on.
 Breach of rules laid down for specific function or functional area.
 Any other unauthorized commitments.
Rectification of audit objections:
 A written notice would be served for the person responsible for the breach committed
giving a fort night time to explain the causes for the lapse And if the explanation is
reasonable under reasons are pardonable, such official may be exonerated.
 If any amount was spent without proper authorization, the official who has spent may be
asked to reimburse such amount or recovered from his salary.
 If any amount disallowed spent by the official, it may be recovered or he may be asked
reimburse.
 In some major cases of irregularity, it may be referred to Public Accounts Committee
[PAG] to consider and decide the action to be taken or to exonerated the mistakes.
 If no other alternate is possible a penalty may be imposed on the person committing
irregularity.

An Audit Para is an extension of an audit report which includes any comments or

recommendations or measures suggested by the auditor to get over with certain mistakes or
objections raised by him in the audit report.
Types of audit paras: There are three types of audit paras:
 Suggestive paras: This includes the suggestions made by the auditor in respect of the
organization he has audited. Whatever points he wants to suggest may be included in
this para. Normally, measures to improve the efficiency or achieve accounting
perfection are included in this para but no restrictions are there to make any other
suggestions.
 Recovery paras: In this para the auditor may make recommendations to collect any
amount due to the govt department over the allowed period or reasonable period. It
may also be to recover the unauthorized amounts paid or amount paid without or
beyond sanctions by any of the officials of any govt department.
The Recovery paras are useful to identify the long due or over due amount or
any amount to be received by an organization.
 Analytical paras: Analytical para include the analysis made by the auditor regarding
certain issues which he may find fit. Such an analysis is useful for the concerned govt
department to improve its performance in future.
Types of audit conducted for the Panchayat Raj Institutions or Local bodies:
 Special audit or other audits: This type of audit is taken up at the discretion of the
authorities under special situations or specific situations they are not regular audits. For
ex: A Corona fund utilization audit may be conducted as a special audit.
 Financial statement audit: In financial statement audit the auditor peruse the financial
statement prepared by local bodies may be receipts and payments, income and
expenditure accounts and statements of assets and liabilities and compares the various
items included there in the comparison of the statements of a few years is also done to
identify wide deviations of increase or decrease and to get the explanations for such
deviations such a comparison would bring into light any accounting or other
manipulations done by the department under audit this type of audit is normally a
regular or annual audit.
  Statutory audit: A statute is a legislation or enactment in India if any audit of a local
body is conducted under the provisions of a legislation, it is known as statutory audit.
The audit of panchayat Raj Institutions or local bodies are normally conducted under the
provisions of CAG Act and the rules under there may be audits conducted using any
other legislations requiring such an audit brought under statutory audit. For ex: When a
local bodies receives a contributions in a foreign exchange from NRI village or local area
a FEMA audit may be conducted.
 Employee Benefit audit: Under this audit the auditor would ensure that the employee
benefit plans are properly implemented and the benefit has passed on to the
employees. For example: A post pregnancy leave of 6 months is available for women
employees it should be seen that it is implemented.
 Performance audit: Performance audit is an audit conducted to ensure that the various
jobs are performed with efficiency in addition to efficiency, the effectiveness should also
be ensured efficiency ensures the speed of performance and effectiveness ensures the
quality of performance.
 Operation audit: An operation audit is a task assigned at the levels of local bodies, the
auditor should ensure that these tasks or operations are carried out properly with
transparency, i.e. any kind of favoritism or biases do not exist and things are in black and
white.
 Compliance audit: In compliance audit, the auditor should ensure that the local bodies
have followed policies, rules and regulations or procedures laid down in respect of
certain activity the employees in question have no power to make any deviations unless
a prior permission or provisions for such deviation are allowed. For ex: In case of any
appointments to the reserved category the appointments must be made as per Roaster
only.
 Information system audit: Under this audit, the auditor should ensure that an efficient
information or information technology system is acquired and installed there should be
proper infrastructure upgradation such upgradation improves efficiency and
effectiveness.
 Forensic audit: A forensic audit is an audit conducted to identify, unearth and analyze
the causes and effects of an illegal activity which may be financial activity or a non-
financial activity.
Committees: A committee is a group of people who are assigned certain tasks or activities.
Types of committees in the local bodies: There are 2 types of committee in the local bodies:
 Standing Committee: A standing committee is a committee which is assigned with
particular task permanently or with no time boundedness. For ex: Sanitation
committee, garbage committee, health committee, planning committee and so on.
 Adhoc committee: It is a temporary committee assigned with a specific task with a
specific time limit. For ex: Corona relief committee, flood relief committee and so
on.
Difference b/w Standing and Adhoc committee:
Sl no. Standing committee Adhoc committee
1. This is a permanent committee It is temporary committee.
with no time limitations.
2 The task is standardized well No specific task is pre-defined, but
defined task. based on situations and circumstances.

Duties and responsibilities of Adhoc committee of local bodies:

 To define limits or boundaries for the specific duty assigned for Adhoc committee.
 To plan execution of the specific duty or task to prepare a budget in respect of the task
and get the approval from the concerned officials.
 To execute the task in the best interest of the public.
 To conduct a review of the work done.
 To maintain proper accounts and documents to be submitted to the audit or any other
purpose.
Functions of a govt auditor of Urban local bodies:
 He would ensure that the local body has followed the applicable state laws.
 To ensure that the local body has followed its own policies.
 The procedures laid down by the local bodies should be followed.
 The receipts and payments of local bodies should be properly appropriated and
recorded and the auditor should ensure the presence of such documents.
 In respect of grants the auditor should confirm that they are properly accounted and
spent for the general purpose or emergency depending upon whether they are general
grants or special grants.
 The auditor physically check the presence of various asset and ensure that they are in
working conditions.
 They should check stocks and stores by comparing the physical balance with book
balance and the method of their valuation.
 Problems – 5 Marks

1. Prepare a statement of Income and Expenditure Angnawadi Kendra Shiruguppa

Panchayat for the year ending 31/3/22.
 Grants from State Govt – ₹ 5,00,000.
 Contribution from donors - ₹ 1,20,000.
 Nutrition programme expenses - ₹ 2,85,000.
 Primary Health Care expenses - ₹ 1,20,000.
 Family planning expenses - ₹ 80,000.
 Salary to Karya Karthes - ₹ 1,20,000.
 Other expenses to run the Mahila Shakthi Kendra for Women Empowerment - ₹ 30,000.

Shiruguppa Village Panchayat.

Statement of Income and Expenditure for the year ended 31/3/22.
Particulars Amount Amount
Income :
Grant from State Govt. 5,00,000
Contribution from 1,20,000
donors
(A) 6,20,000
Expenses:
Nutritution Programme expenses 2,85,000
Primary Health Care expenses 1,20,000
Family Planning expenses 80,000
Salary to Karya Karthes 1,20,000
Other expenses to run Mahila Shakthi Kendra. 30,000
(B) 6,35,000
EXCESS EXPENDITURE 15,000

NOTE:

 Unless otherwise mentioned, the grants should be taken as Revenue grants and
considered as income.
 If the grants are given as equipment grant, library grant, building grant etc. they are
capital income and should not be considered as income.

2. The following information relates to Bannur village Panchayat for the year ended
31/3/22.
 Grants from UNICEF - ₹ 3,80,000.
 Grants from State Govt - ₹ 5,50,000.
 Bank interest received from Fixed Deposits - ₹ 24,000.
 Other receipts - ₹ 7,000.
 Expenses towards Nutrition - ₹ 2,60,000.
 Expenses towards Child care - ₹ 1,90,000.
  Women Empowerment expenses - ₹ 1,60,000.
 Wages and Salary - ₹ 1,80,000.
 Conveyance expenses - ₹ 15,000.
 Remuneration to Adhyaksh - ₹ 12,000 p.a.
 Other expenses - ₹ 26,000.
Bannur Village Panchayat
Statement of Income and Expenditure for the year ended 31/3/22.
Particulars Amount Amount
Income:
Grants from UNICEF 3,80,000
Grants from State Govt 5,50,000
Bank Interest received 24,000
Other receipts 7,000
(A) 9,61,000
Expenses:
Nutrition expenses 2,60,000
Children care expenses 1,90,000
Women empowerment expenses 1,60,000
Wage and salary 1,80,000
Conveyance expenses 15,000
Remuneration to Adyaksha 12,000
Other expenses 26,000
(B) 8,43,000
Excess of income (A-B) 1,18,000

3. The following information relates to Bandipur Panchayat for the year ended 31/3/22.
 House taxes received - ₹ 65,000.
 Advertisement &fee - ₹ 74,000.
 Receipts from Primary School Fees - ₹ 1,20,000.
 State Govt Grants - ₹ 7,00,000.
 Other receipts - ₹ 16,000.
 Income from Rice Mill - ₹ 77,000.
 Rice Mill expenses - ₹ 39,000.
 Primary School expenses - ₹ 70,000.
 Depreciation on Rice Mill equipment - ₹ 15,000.
 Wages and salaries - ₹ 2,40,000.
 Prathamik Arogya Kendra expenses ₹ 70,000.
 Expenses to provide training to women for self-employment - ₹ 60,000.
 Mid-day meal expenses for Children of the village - ₹ 2,20,000.

Bandipur Village Panchayat

Statement of Income and Expenditure for the year ended 31/3/22.
Particulars Amount Amount
Income:
 House Tax received 65,000
Advertisement fee 74,000
Receipt from primary school fees 1.20,000
State govt grants 7,00,000
Other receipts 16,000
Income from Rice Mill 77,000
Total (A) 10,52,000
Expenses:
Rice Mill expenses 39,000
Primary school expenses 70,000
Deprecation on Rice Mill equipment 15,000
Wages and salary 2,40,000
Prathamik 0 Arogya Kendra expenses 70,000
Expenses for Women empowerment 60,000
Mid-day meal expenses 2,20,000
Total(B) 7,14,000
EXCESS OF INCOME (A - B) 3,38,000

4. From the following information prepare Receipts and Payment A/c of Anganwadi
Kendra of Shiva Panchayat.
o Bank balance on 1/4/21 - ₹ 48,500.
o State Govt maintenance grants - ₹ 5,22,000.
o Building Grants from State Govt - ₹ 10,00,000.
o UNICEF grants - ₹ 2,00,000.
o Primary Health Check up expenses - ₹ 2,85,000.
o Salary to Anaganwadi workers - ₹ 1,60,000.
o Nutrition Programme expenses - ₹ 1,10,000.
o Family Planning expenses - ₹ 1,85,000.

Sira Village Panchayat Anganwadi Kendra

Receipts and Payments A/c for the year ended as on 31/3/22.
Receipts Amount Payment Amount
To bank bal b/d 48,500 By Primary health check-up
To State Govt maintenance grants 5,22,000 Expenses 2,85,000
To State Govt building grants 10,00,000 By salary to Angnawadi
To UNICEF grants 2,00,000 workers 1,60,000
By Nutrition programme 1,10,000
By Family Planning expenses 1,85,000
By Bank bal c/d 10,30,500
17,70,500 17,70,500
NOTE:
 While preparing a Receipt and Payment A/c all kinds of receipts and payments whether
capital or revenue should be considered.
 The difference between the two sides at the end should be considered as Bank Balance
 or Bank overdraft balance.
 Depreciation is not taken in Receipts and Payments A/c, because it is a Non – cash item.

5. Prepare receipt and payment account of Village Panchayat for the year ending 31/3/22
 Bank balance as on 1/04/21-2,65,000
 House tax collected -1,20,000
 Grants received from the state government -2,80,000
 Collection from fare and markets-12,000
 Other receipts -14,000
 Salaries and wages -48,000
 Depreciation on drilling equipment -14,000
 Repairs and maintenance of agricultural equipment -28,000
 Vehicle purchases for use by Panchayat staff -50,000
 Remuneration to Adhyaksha and Upa-adhyaksha -36,000
 Health care expenses-65,000
 Nutrition program expenses-86,000
 Other expenses-70,000
 Investments in state government securities-2,00,000 .

Village Panchayat
Receipts and Payment account for the year ended as on 31/03/22
Receipts Amount Payments Amount
To Bank balance b/d 2,65,000 By salary and wages 48,000
To House tax collected 1,20,000 By maintenance expenses of 28,000
agricultural equipment
To Grants from state govt 2,80,000 By remuneration to Adhyaksha & 36,000
Upa-adhyaksha
To Collection from fair and 12,000 By vehicle purchased 50,000
markets
To other receipts 14,000 By health care expenses 65,000

By nutrition program expenses 86,000

By other expenses 70,000
By investment in securities 2,00,000
By bank bal c/d 1,08,000

Total 6,91,000 Total 6,91,000

6. BBMP had 1,26,250 units of LED bulbs on 1/04/21 during the year 2,80,000 bulbs were
purchased 10% free bulbs were given under incentive scheme by manufacturer 1,03,400
were replaced in streets and public places due to normal wear and tear 22,200 bulbs were
destroyed in public riots and were replaced 5,000 bulbs have become useless due to
 mishandling .Show the closing stock of LED bulbs as on 31/03/22.
Note: In the case of stores & consumables the following format has to be followed
Particulars Amount
Opening stock XX
(+) purchase or manufactured XX
XXX
(-)replaced XX
XXX
(-)used or consumed XX
XXX
(-)pilferage XX
XXX
(-)lost due to mishandling XX
XXX
(-)abnormal loss XX
Closing stock XXX
BBMP
Calculation of stock of LED bulbs
Particulars Units Units
Opening stock 1,26,250
(+)Purchased 2,80,000
(+)Incentives units received (2,80,000*10%) 28,000 3,08,000
4,34,250
(-)Replaced in streets & public places 1,03,400
3,30,850
(-)Destroyed due to riots 22,200
3,08,650
(-)Lost due to mishandling 5,000
Closing stock as on 31/3/22 3,03,650
7. Mysore municipal corporation has 35,500 units of tube light on 1/4/21 ,6,000 units of tube
light were purchased from Philips company & 7,000 units were purchased from the other
suppliers of tube light ,9600 tube light were replaced due to wear & tear ,1,200 tube lights were
useless due to poor quality and were sent back to the company ,900 tube lights were destroyed
due to natural disaster ,120 tube lights were broken due to mishandling .calculate the closing
stock of tube light as on 31/3/22.
Mysore municipal corporation
Calculation of stock of tube light
Particulars Units Units
Opening stock 35,500
(+)purchase(6,000+7,000) 13,000
48,500
(-replaced due to wear & tear 9,600
38,900
(-)poor quality tube light sent back 1,200
37,700
(-)abnormal loss(natural disaster) 900
36,800
(-)mishandling 120
Closing stock as on 31/3/22 36,680
8. Dharwad municipal corporation has 4,000 units of waterline pipes on 1/4/21 during the year
1,200 units were purchased & 1,950 units were replaced due to wear and tear of old pipes, 60
units were broken &have become useless, 78 units were of poor quality & were returned
to supplier 20 units have been stolen. Calculate the closing stock of the pipes.

Dharwad municipal corporation

Calculation of stock of waterline pipes
Particulars Units
Opening stock 4,000
(+)Purchase 1,200
5,200
(-)Replaced due to wear & tear 1,950
3,250
(-)Broken pipes 60
3,190
(-)Poor quality &sent back 78
3,112
(-)Stolen 20
Closing stock as on 31/3/22 3,092
8. Kalburgi town municipal council has Prathamic Arogya Kendra & the following are the
receipts & payment of Kendra .
 Bank balance as on 01/04/21-33,000
 Amount from sale of medicine -38,000
 Grants from state government-1,80,000
 Cost of medicines-1,20,000
 Salary to medical & paramedical staff-1,80,000
 Repairs &maintenance of medical equipment-28,000
 Other expenses-14,000
Prepare Receipts &Payment account of Arogya Kendra.

Kalburgi Town Municipal Council

Prathamic Arogya Kendra Receipts & Payment account
Receipts Amount Payment Amount
To Balance b/d on 1/4/21 33,000 By Cost of medicines 1,20,000
To Sale of medicine 38,000 By Salary to staff 1,80,000
To Grants from State Government 1,80,000 By Repair & maintenance of medical 28,000
equipment
To Bank o/d at the end of the year 91,000 By Other expenses 14,000
Total 3,42,000 Total 3,42,000

9. The following are the Receipts & Payment of Kreeda Kendra Mulbagal town
municipal council as on 31/3/21.Prepare receipts &Payment account & Income &
Expenditure statement.
 Bank balance as on 1/04/21-83,000
 Collection from sports fees-42,000
 Collection from sports training fees-80,000
 Grants from state government-60,000
 Cost of town level sports competition-48,000
 Prizes distribution-16,000
 Remuneration to the trainers & couches-36,000
 Maintenance of sports field-12,000
 Maintenance of sports equipment & material-19,000
 Other salaries & wages to ground staff-24,000
 Depreciation on sports equipment-9,000
 Purchase of sports equipment & material-40,000
Mulbagal town municipal council Kreeda Kendra
Receipts & Payment account
Receipts Amount Payment Amount
To bank as on 1/4/21 83,000 By Cost of town level sports 48,000
competition
 To Sports fees received 42,000 By Prize distribution 16,000
To Sports training fees received 80,000 By Remuneration to trainer & couch 36,000
To Grants received 60,000 By Maintenance of sports field 12,000
By Maintenance of sports 19,000
equipment & material

By Salaries & wages to ground staff 24,000

By Purchase of sports equipment 40,000
By Bank balance c/d 70,000
2,65,000 2,65,000

Mulbagal town municipal council

Statement of Income & Expenditure as on 31/3/21
Particulars Amount Amount

Incomes:
Sports fees received 42,000
Sports training fees received 80,000
To grants received 60,000
Total(A) 1,82,000
Expenses
Cost of town level sports competition 48,000
Prize distribution 16,000
Remuneration to trainer & couch 36,000
Maintenance of sports field 12,000
Maintenance of sports equipment & material 19,000
Salaries & wages to ground staff 24,000
Depreciation on sports equipment 9,000

Total(B) 1,64,000
Excess of Income (A-B) 18,000

For all o/s Income or Expenditure

Particulars Amount
Received /paid XX
 (+)o/s at the end XX
(-)o/s at the beginning (XX)
I & E account XXX

For all advance [pre-paid (Expenditure),pre-received(Income)]

Particulars Amount
Received or paid XX
(+)Advance at the beginning XX
(-)Advance at the end (XX)
I & E account XXX

Consumables /stores
Particulars Amount
Opening stock XX
(+)purchase/paid XX
(-)closing stock (XX)
XXX

10. Gopi Palyam village Panchayat has 620 houses in its geographical limits & the
Panchayat imposes house tax of 750 per annum & 10% penalty for the late payments up
to 31/3/22, 485 house owners have paid the tax & others are still pending. Calculate total
revenue from house tax for the year 2021-22
11.
Gopi Palyam village Panchayat
Revenue from House Tax
Particulars Tax Tax
House tax received (485*750) 3,63,750
(+)O/s on 31/3/22 (620-485=135) (135*750) 1,01,250
(+) Penalty (1,01,250*10%) 10,125
Total house revenue 4,75,125

12. Coimbatore municipality charges 4,000 per annum as tax for each commercial property
there are 925 commercial complexes in the geographical limits of the municipality charges
15% penalty for the late payment. On 1/4/21 20 property owners had paid in advance and
640 property owners had paid their taxes during the year. Calculate the revenue from
commercial property tax for the year ending 31/3/22.
 Coimbatore municipality
Revenue from house tax
Particulars Tax Tax
Commercial property tax (640*4,000) 25,60,000
(+)Advance at the beg 1/4/21 80,000
26,40,000
(+)o/s on 31/3/22(265*4,000) 10,60,000
(+)penalty 15%(10,60,000*15%) 1,59,000 12,19,000
Tax from commercial property 38,59,000

Working:
Total house 925
(-)received 640
285
(-)advance 20
o/s 265

13. The following information of Guntur village Panchayat for the year ending 31/3/22.
 Bank balance as on 1/4/21-23,500
 House taxes received-82,000
 Market & advertisement tax received -44,000
 Interest on bank deposits-8,000
 Grants from govt -40,000
 Other receipts-9,000
 Nutrition program expenses-38,000
 Healthcare expenses-29,000
 Expenses to provide training to the women of the village-23,000
 Wages & salaries-35,000
 Maintenance equipment expenses-12,000
 Income from rice & flour mill-65,000
 Expenses to run the rice & flour mill -9,000
 Purchase of computer for the Panchayat at a subsidy rate-26,000
 Other expenses for primary education to the children-38,000.

Other information
 Depreciation on agricultural equipment not yet charged-5,000.
 Rs.2,000 house tax was irrecoverable due to the insolvency of the villager.
Prepare Receipts & Payment account & Income & Expenditure statement.
Guntur village Panchayat
Receipts & Payment account for the year ending 31/3/22
Receipts Amount Payment Amount
To Bank balance as on 1/4/21 23,500 By Nutrition program expenses 38,000
To House taxes received 82,000 By Healthcare expenses 29,000
To Market & advertisement tax 44,000 By training to the women of the 23,000
received village
To Interest on bank deposits 8,000 By Wages & salaries 35,000
To Grants from govt 40,000 By Maintenance equipment 12,000
expenses
To Other receipts 9,000 By Expenses to run the rice & flour 9,000
mill
To Income from rice & flour mill 65,000 By Purchase of computer 26,000
By primary education to the 38,000
children
By balance c/d 61,500
2,71,500 2,71,500

Statement of Income & Expenditure account

Particulars Amt Amt
Income:
House taxes received 82,000
Market & advertisement tax received 44,000
Interest on bank deposits 8,000
Grants from govt 40,000
Other receipts 9,000
Income from rice & flour mill 65,000
Total(A) 2,48,000
Expenses:
Nutrition program expenses 38,000
Healthcare expenses 29,000
Training to the women of the village 23,000
Wages & salaries 35,000
Maintenance equipment expenses 12,000
Expenses to run the rice & flour mill 9,000
primary education to the children 38,000
depreciation 5,000
Bad debts 2,000
Total(B) 1,91,000
Excess of income(A-B) 57,000
 14. Bangalore Municipal Corporation has purchased 50 ambulance at a cost of 15,00,000
each on 1/5/21, 50% of the cost is funded by UNICEF & 10% of the total outlay is funded
by state govt through ambulance grant. Calculate depreciation to be provided on the
ambulance at 15% per annum on 31/3/22.

Particulars Amount
Cost of ambulance (15,00,000*50) 7,50,00,000
(-)Fund provided by UNICEF (7,50,00,000*50%) 3,75,00,000
3,75,00,000
(-)State govt ambulance grant (7,50,00,000*10%) 75,00,000

Net cost 3,00,00,000

(-)Depreciation(3,00,00,000*15%*11/12) = 41,25,000

Depreciation is 41,25,000.

15. Salem municipal corporation purchased 5 X-Ray equipment for its municipal hospital at
a cost of 9,00,000 each 25% of the cost is met by Tamil Nadu govt through medical
equipment grants. The installation charge amounted to 50,000 per X-ray equipment &
the machine was installed on 1/6/12. Calculate depreciation up to 31/3/22 at 15% p.a.

Particulars Amount
Cost of X-ray equipment (9,00,000*5) 45,00,000
(-)state govt through medical equipment (45,00,000*25%) 11,25,000
33,75,000
(+)installation expenses(50,000*5) 2,50,000
(-)depreciation(36,25,000*15%*10/12) = 4,53,125
Note:
 When asset is purchased and the cost is partial met by a third party, it should be
reduced by cost & on the balance only depreciation can be claimed for the period of
usage of asset.
 Installation charges or any expenses to bring an asset into working condition should be
added only deduction any grants or subsidy received from an external party.
 As the date of purchase is not given ,date of installation is presumed to be the date of
purchase.
16. Dharwad Municipal Corporation purchased scanning equipment for its hospital at a cost
of 4,00,000 & totally 5 scanning equipment are purchased & the total installation cost
is 5,00,000. The govt sponsored 40% of the cost under Swasth Bharath Scheme & all
the equipment’s started working from 1/8/21. Calculate the depreciation to be charged
on 31/3/22 at 15%.
 Particulars Amount
Cost of scanning equipment (4,00,000*5) 20,00,000
(-)State Govt grants (20,00,000*40%) 8,00,000
12,00,000
(+)Installation expenses 5,00,000
17,00,000
Depreciation (17,00,000*8/12*15/100=1,70,000)

17. Comment whether capital grants or revenue grants

 Salary grants - Revenue grants
 Equipment grants - Capital grants
 Library grants - Capital grants
 Maintenance grants - Revenue grants
 Scholarship grants - Revenue grants

18. Chennai metro municipal corporation had stores on hand 5,000 units purchased at Rs 5,000
units on 1/4/21 during the year 21-22, 20 units were destroyed by mishandling ,3,000 units
were purchased at 6,000 per unit at a trade discount of 10% & 7,000 units were issued to
various works under FIFO method . Calculate the value of the stores at the end if their fair
market value on 31/3/22 is 5,300 per unit.

Particulars Units Amount

Opening stock as on 1/4/21 5,000 2,50,00,000
(-)destroyed 20 1,00,000
4,980 2,49,00,000
(+)purchase(3,000*5,400) 3,000 1,62,00,000
7,980 4,11,00,000
(-)issued for workers 7,000 units under FIFO 7,000 3,58,08,000
method 4,980*5,000=2,49,00,000
2,020*5,400=1,09,08,000
Closing stock as per books 980 52,92,000
FMV = 5,300*980=51,94,000
Conclusion: FMV = 51,94,000 is the closing stock value to be considered.

19. Dindigal Municipality certain items of stores which are valued at 2,000 ₹ per unit & the
balance of stock was 2,300 units during the year 4,000 units were purchased at 2,300 units
during the year 4,000 units were purchased at 2,450 per units for various works 4,000 units
were issued under FIFO method 50 units were destroyed due to mishandling . Calculate the
value of closing stock as on 31/3/22 if the fair market value of each unit is 2,550.
 Dindigal municipal corporation
Statement of stock
Particulars Units Amount
Opening stock1/4/21(2,000*2,300) 2,300 46,00,000
(+)purchase(4,000*2,450) 4,000 98,00,000
6,300 1,44,00,000
(-)issued under FIFO method 4,000 87,65,000
2,300*2,000=4,00,000
1,700*2,450=41,65,000
(-)destroyed by mishandling (50*2,450) 50 1,22,500
Closing stock as per book 2,250 55,12,500
FMV = 2,250*2,550=57,37,500

Conclusion: The book value that is 55, 12,500 is the stock value to be considered.
Note: As per the norms stock valuation either the book value fair market value W.E.L should be
considered as the stock value on the valuation day/date.

19 . Mangalore municipal corporation has let out 250 shops in its central complex the rent of
each shop during the year 20-21 was 1,200 per month & the annual hike is 5%. 10 tenants have
paid advance rent for 3 months for the year 22-23 & 20 tenants did not paid 2 month rent each
for the year 21-22. Calculate the revenue from rent collected by the municipality for the year 21-
22.
Applicable rates:
20-21=1,200
21-22=1,260
22-23=1,323

Mangalore municipal corporation

Statement of rental receipts for the year 21-22
Particulars Amount
Revenue from let out(230*12*1,260) 34,77,600
O/s rent(20*10*1,260) 2,52,000
Advance(10*3*1,325) 39,690
Total 37,69,290

20. Ramohalli village Panchayat as fixed a house tax of 800 p.a market & fair fees of 200
per person & a parking fees of Rs.12 per vehicle per day during the year 21-22.
a) There are 205 houses in the limits of the village.
b) During the year 620 traders participated in the market & fair.
c) On an average 340 vehicles were park for 20 days each during the year. Calculate the revenue
collected for the year 21-22.
 Ramohalli village Panchayat
Statement of revenue for the year 21-22
Particulars Amount
House tax(800*205) 1,64,000
Market & fair(200*620) 1,24,000
Parking fees(12*340*20) 81,600
Total revenue collected 3,69,600
21. Utility building belonging to BBMP Bangalore has 2,400 shops & rent during 20-21 is
4,200 per shop per month during 20-21 251 shop owners were to pay 2 month rent
each which was o/s which was received in the next year. Every year the rent is hike by
5% during the year 21-22 200 shop owners did not paid rent for 3 month each was as
240 shop owner paid advance rent for 2 month each for 22-23. Calculate the rent
collected by BBMP during 21-22.
Applicable rates:
20-21=4,200
21-22=4,410
22-23=4,631
BBMP Bangalore
Statement of revenue for the year 21-22
Particulars Amount
O/s rent 20-21(251*2*4,200) 21,08,400
Rent paid 21-22 11,64,24,000
(2,400-200=2,200*12*4410) 79,38,000
(200*9*4410)
Advance-22-23(240*2*4,631) 22,22,880
Total rent collected 12,86,93,280

22. Bommasandra village Panchayat has fixed a house tax 1,000 per house per annum.
Rs220 per person market & fair fees & 15 ₹ per vehicle per day parking fees. Calculate
the total revenue collected for the yr 21-22.
a. There are 700 houses in the village limits & 20 people did not pay house tax.
b. Total 428 people participated in the market & fair on an average for 2 fairs.
c. On an average 350 people park their vehicle for 30 days.

Bommasandra village Panchayat

Statement of revenue for the year 21-22
Particulars Amount
House tax(700-20=680*1000) 6,80,000
Market & fair(428*220*2) 1,88,320
Parking fees(350*30*15) 1,57,500
Total revenue collected 10,25,820
 23. Prepare a statement of income & expenditure from primary education of Hoskote
town council for the period ending 31/3/22.
 Primary education grants received from stat government-6,00,000
 Contributions from donors for running the school-2,00,000
 Fees from students-50,000
 Other receipts-10,000
 Maintenance expenses-80,000
 Salary to teachers & other staff-5,40,000
 Mid-day meal expenses-1,60,000
 Stationery books expenses-50,000
 Other expenses-10,000

Hoskote Town Council

Statement of Income and Expenditure for the period 31/3/22
Particulars Amount
Income
Grants received from stat government 6,00,000
Contributions from donors 2,00,000
Fees from students 50,000
Other receipts 10,000
Total (A) 8,60,000
Expenses
Maintenance expenses 80,000
Salary to teachers & other staff 5,40,000
Mid-day meal expenses 1,60,000
Stationery books expenses 50,000
Other expenses 10,000
Total (B) 8,40,000
Excess of income(A-B) 20,000

24. Prepare a statement of general grants for the year 21-22 from the following
information in respect to Zilla parishat
 Grant from central government - 15,00,000
 Grant from state government - 3,00,000
 Grant from Prathamic Arogya Kendra – 1,80,000
 Grant for old age pension - 180000
 Grant to Anganavadi Kendra -230000
 Grant to Gramina Shala - 180000
 Grant to destitute home– 180000
 Zilla Parishat
Statement of grant for the year 21-22
Particulars Amt Amt
Received:
Grant from central govt 1500000
Grant from state govt 300000
Total 1800000
Distributed:
Grant for Prathamic Arogya Kendra 180000
Grant for old age pension 180000
Grant to Anganavadi Kendra 230000
Grant to Gramina Shala 180000
Grant to destitute home 180000 950000
Balance in grant account 850000

15 marks
BUDGET AND FINANCE
1. Prepare a budget of government of India for year 22-23 from the following information [all in
crs]
 Income tax collected - 42500
 Gst collection - 74500
 Other taxes collected – 9200
 Administrative services expenditure -72900
 Defence services expenditure -28800
 Interest and other debt services -6400
 Other fiscal services – 3200
 Social services [scholarship, old age pension, expenditure towards down trodden
section of social ]6800
 Economic service – 8200
 Grant in aid contribution-4900
 Profile from public enterprise -7700
 Interest and dividends_4400
 Other subsidiary source - 7200

Govt of India Proposed budget for the year ending 22-23

Particulars Amt [crs] Amt [crs]
Source [inflow]
I Tax revenues
Income tax collected 42500
Gst 74500
Other tax collected 9200
Total 126200
II Non tax revenue
Profile from public enter price 7700
Interest and dividends 4400
Other subsidiary source 7200
Total 19300
Total[A] 145500
Application /out flow
I General services administration services 72900

Defence service 28800

Interest and other debt service 6400
Other fiscal services 3200
Total 111300
II Social services [old age pension , scholarship etc] 6800

III Economic services 8200

IV Grant in aid contribution 4900
Total [B] 131200
Surplus [A-B] 14300

2. Prepare a budget of govt of India for the year 22-23[all in crs]

 Direct taxes -55500
 Indirect tax -76600
 Profit and division on investments -28800
 Int on investments -7600
 Other receipts -6400
 Administrative services -41800
 Defence service -40300
 Debts services -12000
  Fiscal services-2000
 Social services – 9000
 Economic services- 12000
 Grant in add contribution -20000

Govt of India
Proposed budget for the year 22-23
Particulars Amt Amt
Sources /inflow
I Tax revenue
Direct taxes 55500
Indirect tax 76600 132100
II Non tax revenue
Profile and dividends 28800
Interest in investments 7600
Other receipts 6400 42800
Total [A] 174900
Application /outflow
I General expenses
Administrative services 41800
Defence services 40300
Debt services 12000
Fiscal services 2000 96000
II Social services 9000
III Economic services 12000
IV Grant in aid and contribution 20000
Total [B] 1371000
Surplus[A-B] 37800

3. Prepare a budget of govt of India for the year 21-22[in crs]

 Direct taxes – 60200
 Indirect taxes – 82100
 Profit and dividends from public enterprises – 21200
 Interest on investments – 8500
 Other receipts – 7400
 Administrative services spent –58400
 Defence services – 61200
 Debts services – 24800
  Fiscal services – 1200
 Social services – 28000
 Economic services – 9900
 Grant in aid and contribution of public welfare – 41200
What is the supplementary source that may be solicits.
Government of India
Proposed budget for the year ending-21-22
Particulars Amount Amount
Sources[inflow]
I Tax revenues
Direct taxes 60200
Indirect taxes 82100 142300
II Non tax revenues

Profit and dividend from public enterprises 21200

Int on investments 8500
Other receipts 7400 37100

Total[A] 179400
Application /outflow
I General expenses

Administrative services 58400

Defence services 61200
Debts services 24800
Fiscal services 1200 145600

I Social services 28000

I
III. Economic services 9900
IV. Grant in aid and contribution 41200

Total [B] 224700

Deflect [B-A] (45300)
Amount to be mobilized from supplementary sources is 45300
4. Prepare a budget of govt of India for the year 22-23[ in crs]
 Income tax -75000
 Gst -82000
 Other taxes -24000
 Interest and dividend -10800
 Other receipt -7600
 Administrative services -33400
 Defence services -29800
 Debt service -11200
 Social services -20000
 Economic services -3500
 Grant in aid and contribution -22000
The following information is also available:

 Public enterprises have reported a net incomeof 12000crs

 There is a fresh demand of 9000 crs towards defence to purchase war equipments.
 Unreported fiscal services now reported amount to 3200
 Income tax is likely to go up by 20% over the reported amount
 Gst is likely to come down by 15%over the reported amount

Govt of India

Proposed budget for the year -21-22

Particulars Amt Amt

I Tax revenues
Income tax – 75000
(+) increases (75000*20%)=15000 90000
Gst -82000
(-) decrease -12300 69700 183700
Other taxes 24000
II Non tax revenue
Interst and dividends 10800
Other receipts 7600
Profile from public enterprise[now reported] 12000 30400
Total [A] 214100
Application/ out flow
I General expenses
Administrative services 33400
Defence services-29800

(+) purchase demand -9000 38800

 Debt services 11200
Fiscal services (fresh now reported) 3200 86600
II Social services 20000
III Economic services 3500
IV Grant in aid and contribution 22000
Total (B) 132100
Surplus(A-B) 82000

5. Prepare a budget of govt of India for the year 22-23(in crs)

 Direct taxes-49000
 Indirect taxes -78000
 Profit from govt undertaking -28400
 Int on investments -6900
 Other receipts -7400
 Administrative services –40800(likely to go up by15% due to 8thpaycommission)
 Defence services –38000(likely to go up by 25%to acquire defence equipments)
 Debts services -12200
 Fiscal services -4400
 Social services -16800 (likely to increase 24000)
 Economic services 14100( likely to come down by 400)
 Grant in aid and contribution -36000(likely to group by 12000 to give aboost to the
economy)

Govt of India
Proposed budget for the year -22-23
Particulars Amt Amt
Source / inflow
I Tax revenue
Direct taxes 49000
Indirect taxes 78000 127000
II Non tax revenue
Profit from govt undertaking 28400
Int on investments 6900
Other receipts 7400 42700
Total (A) 169700
 Application / outflow
I General expenses
Administrative service -40800
(+)increase 6120 46920
Defence services 38000
(+)increase - 9500 47500
Debt service 12200
Fiscal services 4400 111020
II Social services –16800
(+) increase 7200 24000
III Economic services 14100
(-)decrease (400) 13700
IV Grant in aid and contribution -36000
(+)increase 12000 48000 85,700
Total (B) 196720
Deficit (B-A) 27020

6. Prepare a budget of India for the year 22-23

 Income tax -85000
 Other direct taxes -12200
 Gst -124000
 Other indirect taxes – 21000
 Profit from govt undertaken-12600
 Interest and dividends -18000
 Borrowing from public for fresh govt projects – 20000
 Salaries and other establishment expenses 24000
 Expenses to acquire war equipment -18000
 Salary to defence staff -15000
 Other defence expenses-9800
 Interest to be paid on the borrowing by govt -7200
 Various govt securities were to be repaid during the year -4500
 Fiscal services -4100
 Scholarship to weaker section of the society – 9500
 Scholarship to higher education of the women -9000
 Old age pension -4800
  Other social expenses towards medical and education -9000
 Transport expenses -5000
 Charges for the maintenance of central govt asset -4200
 Other economic services -2800
 Grant in aid for education – 6000
 Subsidies and bounties -7000

Govt of India
Proposed budget for the year 22-23
Particulars Amt Amt
Source /inflow
I Tax revenues
Income tax 85000
Other direct taxes 12200 97200
Indirect tax
Gst 124000
Other indirect taxes 21000 145000
II Non taxes revenues
Profit from govt undertaken 12600
Interest and dividends 18000 30600
III Borrowing from public
Borrowing from public for fresh 20000 20000
Govt project
Total [A] 292800
Application / outflow
I General expenses
a. Administrativeexp
Salaries and other establishment exp 24000
b. Defenceservices
Expenses to acquire warequipment 18000
Salary to defence staff 15000
Other defence exp 9800
c. Debts services
 Int to be paid on borrowing 7200
Various govt securities repaid 4500
d. Fiscalservices 4100 82600
II Social services
Scholarship to weaker section 9500
Scholarship to higher women education 9000
Old age pension 4800
Other social services 9000 32300
III Economic services
Transportation exp 5000
Charges for maintenance of central govt asset 4200
Other economic services 2800 12000
IV Grant in aid and contribution
Grant in aid for education 6000
Subsidiaries and bounties 7000 13000
Total [B] 139900
Surplus[A-B] 152900

7. Prepare a budget of Bangalore Municipal Corporation for the year 22-23 on the basis of
expected inflow and outflow sources:
Inflow:
 Property tax – 4800000
 Tax on trade and profession – 3800000
 Tax on advertisement – 7200000
 Services charges and tax on central govt property – 3100000
 Tax on carriages – 2300000
 Tax on cart – 1250000
 Receipt from water supply – 8200000
 Receipt from sewage and drainage – 2000000
 Receipt from municipal market – 1450000
 Receipts from building plan sanction fee – 2100000
 License fees – 1480000
 Solid and other waste management – 9800
 Health services – 9000
 Advertisement fee – 1400000
 Car and other parking fees – 800000
 Interest on FD – 1430000
 Fixed grand – 3000000
 Development grants – 1400000
Outflow / applications:
 General administration – 14800000
 Public works – 13600000
 Health care – 1400000
 Primary and secondary education – 13600000
 Sanitation and water supply – 3000000
 Civic Amenities – 2800000
 Urban forestry – 1200000
 Poverty alleviation and social welfare – 3800000
 Other services – 5000000.

Bangalore Municipal Corporation

Proposed budget for the year 22-23
Particulars Amount Amount
Source
Tax revenues
Property tax 4800000
Tax on trade and profession 3800000
Tax on advertisement 7200000
Services charge and tax on central govt 3100000
property
Tax on carriages 2300000
Tax on cart 1250000 22450000
Non tax revenue
Receipts from water supply 8200000
Receipts from sewerage & drainage 2000000
Receipts from municipal market 1450000
Receipt from building plan sanction fee 2100000
License fees 1480000
Solid and other waste management 9800
Health services 9000
Advertisement fee 1400000
Car and other parking fees 800000
 Interest and FD 1430000 18878800
Grants
Fixed grants 3000000
Developments grants 1400000 4400000
Total(A) 45728800
Outflows
General administration 14800000
Public works 13600000
Health care 14000000
Primary & secondary education 13600000
Sanitation & water supply 3000000
Civic amenities 2800000
Urban forestry 1200000

Poverty alleviation and social welfare 3800000

Other services 5000000
Total (B) 71800000
Deficit (A-B) 26071200

8. Prepare a budget of Dharwad Municipal corporation for the year 22-23 on the basic of the
following information:
Tax revenues
 Property tax – 2400000
 Professional tax – 2000000
 Advertisement tax – 3400000
 Tax on carriages – 1200000
 Tax on carts – 900000
 Services tax on central govt property – 1100000
Non-tax revenue
 Interest and other income – 900000
 Car and other parking fees – 800000
 Health services – 4000000
 License fees – 2800000
 Plan sanction fees – 3900000
 Amount from municipal market – 4100000
 Receipts from water and electricity supply – 8000000
 Fixed grant from govt – 2800000
 Medical and educational grants – 2200000
 Other grants – 2100000
Outflow:
 General administration – 5300000
 Public works – 3800000
 Health care – 1900000
 Social services – 700000
 Sanitation and water supply – 1600000
 Civic amenities – 950000
 Urban forestry – 700000
 Other services – 400000.
Dharwad Municipal Corporation
Proposed budget for the year 22-23
Particulars Amount Amount
Source
Tax revenues
Property tax 2400000
Profession tax 2000000
Advertisement tax 3400000
Tax on carriages 1200000
Tax on cart 900000
Services charge and tax on central govt 1100000 11000000
property
Non tax revenue
Interest and other income 900000
Car and other parking fees 800000
Health services 4000000
License fee 2800000
Plan sanction fees 3900000
Amount from municipal market 4100000
Receipts from water and electricity supply 8000000 12100000
Grants
Fixed grants 2800000
 Medical and educational grants 2200000
Other grants 2100000 7100000
Total(A) 30200000
Outflows
General administration 5300000
Public works 3800000
Health care 1900000
Social services 700000
Sanitation & water supply 1600000
Civic amenities 950000
Urban forestry 700000

Other services 400000

Total (B) 15350000

Deficit (A-B) 14850000

9. Prepare a budget of Hubli Municipal Corporation for the year 22-23 on the basis of the following
information.
Source:
Tax revenues
 Tax on carriages - 2,30,00,000
 Tax on carts - 40,00,000
 Property tax - 82,00,000
Non tax revenue
 Receipts from water supply-1,80,00,000
 Receipts from sewerage & drainage-2,02,00,000
 Receipts from municipal market-1,45,00,000
 Advertisement & license fee-80,00,000
Grants
 Fixed grants-62,00,000
 Other grants-20,00,000
Outflows
 General administration-88,00,000
 Public works-1,20,00,000
 Primary & secondary education-1,20,00,000
 Sanitation & water supply -32,00,000
 Civic amenities -39,00,000
 Other services-43,00,000
Other information
 In the previous year tax on trade & profession was 60,00,000& is likely to go up by
 25%in the current year.
 Advertisement tax was 48,00,000 in the last year & likely to come down by 25%.

Hubli municipal corporation

Proposed budget for the year 22-23
Particulars Amount Amount
Source
Tax revenues
Tax on carriages 2,30,00,000
Tax on carts 40,00,000
Property tax 82,00,000
Trade & profession (60,00,000+25%) 75,00,000
Advertisement tax (48,00,000-25%) 36,00,000 4,63,00,000
Non tax revenue
Receipts from water supply 1,80,00,000
Receipts from sewerage & drainage 2,02,00,000
Receipts from municipal market 1,45,00,000
Advertisement & license fee 80,00,000 6,07,00,000
Grants
Fixed grants 62,00,000
Other grants 20,00,000 82,00,000
Total(A) 11,52,00,000
Outflows
General administration 88,00,000
Public works 1,20,00,000
Primary & secondary education 1,20,00,000
Sanitation & water supply 32,00,000
Civic amenities 39,00,000

Other services 43,00,000

Total (B) 4,42,00,000

Surplus(A-B) 7,10,00,000
10. Prepare a budget of Tumkur Municipal Corporation for the year 22-23 Source
Tax revenue
 Property tax-1,84,000
 Tax on advertisement -93,00,000
 Service charges on central government propery-44,00,000
 Tax on carriages-61,00,000
Non tax revenues
 License fee for industries-82,00,000
 Vehicle registration fees-44,00,000
 Water & electricity supply-90,00,000
 Receipts from municipal markets-77,00,000
Grants
 Development grants-82,00,000
 Other grants-24,00,000
Outflows
 General administration-1,34,00,000
 Public & civil works-1,28,00,000
 Health care-49,00,000
 Sanitation & water fecilities-53,00,000
 Primary & secondary education-74,00,000
 Rehabilitation of corona affected people-44,00,000
 Other services-60,00,000
Other information
 Tax on trade & profession was 48,00,000 in the last year is likely to go up by 10%
in the current year
 Receipts from building & multiple complex sanction fees was 50,00,000 in last year
& is likely to go up by 15% in the current year.

Tumkur municipal corporation

Proposed budget for the year 22-23
Particulars Amount Amount
Source
Tax revenue
Property tax 1,84,000
Tax on advertisement 93,00,000
Service charges on central government property 44,00,000
Tax on carriages 61,00,000
Tax on trade & Profession (48,00,000+10%) 52,80,000 2,52,48,000
Non tax revenues
License fee for industries 82,00,000
 Vehicle registration fees 44,00,000
Water & electricity supply 90,00,000
Receipts from municipal markets 77,00,000
Receipts from building (50,00,000+15%) 57,50,000 3,50,50,000
Grants
Development grants 82,00,000
Other grants 24,00,000 1,06,00,000
Total(A) 7,09,14,000
Outflows
General administration 1,34,00,000
Public & civil works 1,28,00,000
Health care 49,00,000
Sanitation & water facilities 53,00,000
Primary & secondary education 74,00,000
Rehabilitation of corona affected people 44,00,000
Other services 60,00,000
Total(B) 5,42,00,000
Surplus(A-B) 1,67,14,000

11 The following is the receipts & payments of Cuddalore gram Panchayat for the year
ended 31/3/21
Receipts and Payment account
Receipts Amount Payment Amount
To Balance b/d By Maintenance of community 35,000
assets
Cash 20,000 By Other maintenance expenses 40,000
Bank balance 2,800 By Salaries & wages 1,60,000
Balance in treasury 3,00,000 By Travelling & conveyance 28,000
To License fee 2,60,000 By Primary & secondary education 62,000
To Taxes of motor vehicles 88,000 By Mid-day meal expenses 40,000
To Taxes on non-motor vehicles 28,000 By Market & fair expenses 52,000
To Advertisement tax 66,000 By Sports expenses 18,000
To House property tax 38,000 By Arogya Kendra expenses 60,000
To Property tax on commercial 80,000 By Family pension 40,000
building
To Interest on bank deposits 1,20,000 By SC/ST weaker section welfare 42,000
expenses
To Rent from building 72,000 By Seeds purchased 1,90,000
To Hire charges on equipment 78,000 By Sewerage & sanitation 18,000
expenses
To Receipts from markets 1,42,000 By Balance c/d 18,500
To Fines & penalties 26,000 Cash 85,000
To Sewerage & sanitation 35,000 Bank balance 10,26,000
To Sales of seeds 2,80,000 Balance in treasury
19,15,000 19,15,000
Adjustments:
 O/s fees-22,000
 O/s remuneration to Adhyaksha -24,000
 Closing stock of seeds-24,000
 Depreciation on equipment-18,000
Prepare a statement of Income & Expenditure account for the year ended 31/3/21.
NOTE: fees, tax, cess are always income of local bodies.
Cuddalore gram Panchayat
Statement of Income & Expenditure for the year ended 31/3/21
Particulars amount amount
Income
License fee 2,60,000
(+)O/s fee 22,000 2,82,000
Taxes of motor vehicles 88,000
Taxes on non-motor vehicles 28,000
Advertisement tax 66,000
House property tax 38,000
Property tax on commercial building 80,000
Interest on bank deposits 1,20,000
Rent from building 72,000
Hire charges on equipment 78,000
Receipts from markets 1,42,000
Fines & penalties 26,000
Sewerage & sanitation 35,000
Sales of seeds 2,80,000
Total(A) 13,35,000
Expenses
Maintenance of community assets 35,000
Other maintenance expenses 40,000
Salaries & wages 1,60,000
Travelling & conveyance 28,000
Primary & secondary education 62,000
Mid day meal expenses 40,000
Market & fair expenses 52,000
Sports expenses 18,000
Arogya Kendra expenses 60,000
Family pension 40,000
SC/ST weaker section welfare expenses 42,000
Seeds consumed 1,66,000
Remuneration to Adhyaksha 24,000
Depreciation on equipment 18,000
Sewerage & sanitation 18,000
Total(B) 8,03,000
Excess of income over expenditure 5,32,000
Working seeds :
Opening seeds - XX
(+)Purchases - 1,90,000
(-)Closing stock - (24,000)
Consumed = 1,66,000

12 The following is the Receipts & payment account of Hubli municipality for the year
ended 31/3/22.Prepare a statement of Income & expenditure account
Receipts Amount Payment Amount
To balance b/d By Maintenance of public places 1,35,000
Cash 32,000 By Salaries & wages 2,80,000
Bank 3,20,000 By Primary & secondary education 1,70,000
expenses
To Electricity charges 80,000 By Conveyance 25,000
To Water charges 90,000 By Mid-day meal expenses 1,80,000
To Income from fees 82,000 By Remuneration to community 1,40,000
members
To Road cutting charges 7,000 By Dispensary expenses 80,000
To Initial deposit for new 5,00,000 By Family pension 80,000
connections
To Fines & penalties 33,000 By Investment in government 3,00,000
securities
To House tax 25,000 By Balance c/d
To Taxes from commercial 2,10,000 Bank 20,000
complexes
To Primary & secondary 56,000 Cash 25,000
education fees
14,35,000 14,35,000
Other information
 O/s house tax-12,000
 Advance rent from commercial complex already received-10,000
 Closing stock of medicines in dispensary -12,000
  Depreciation on equipment 10,000,vehicle -12,000 & computer-2,000
 Provide 5,000 for fees payable to lawyers

Hubli municipality
Statement of Income & expenditure for the year ended 31/3/22
Particulars Amount Amount
Income
Electricity charges 80,000
Water charges 90,000
Income from fees 82,000
Road cutting charges 7,000
Fines & penalties 33,000
House tax 25,000
(+)O/s 12,000 37,000
Taxes from commercial complexes 2,10,000
(-)Advances (10,000) 2,00,000
Primary & secondary education fees 56,000
Total(A) 5,85,000
Expenses
Maintenance of public places 1,35,000
Salaries & wages 2,80,000
Primary & secondary education expenses 1,70,000
Conveyance 25,000
Mid-day meal expenses 1,80,000
Remuneration to community members 1,40,000
Dispensary expenses 68,000
Family pension 80,000
Depreciation on equipment 10,000
Depreciation on vehicle 12,000
Depreciation on computer 2,000
Fees to lawyer 5,000
Total(B) 11,07,000
Excess of expenses over income(B-A) 5,22,000

Note:

Dispense - 80,000
(-)Closing stock - 12,000
Dispensary expenses = 68,000

13 The following is R and P account of Gotigere gram Panchayat for the year ended 31/3/22
prepare a Statement of Income or Expenditure:
To balance b/d By wages and 24000
Cash in hand 40,000 Salary
Cash at bank 8,000 By Remuneration to
To House tax 70,000 Adhyaksha 10000
To Toll received 30,000 By Remuneration to
To Market and fair tax 18,000 Upadyaksha 5000
To Annual grant from By Conveyance 12000
State government 80,000 By Road maintenance
To Equipment grant 1,80,000 And other maintenance 20000
To Grant from state govt Charge
2,00,000 By Rice mill equipment
To Rent received from Building Purchased on 1/7/21 200000
belonging to Panchayath 48,000
By Market and
To investment interest 5,000 Fair expenses 20000
To Primary and Secondary By Primary health
Education expenses 48,000 Care services 24000
By primary and
secondary 50000
Education
By other expenses 12000
By Balance c/d
Cash - 14,000
Bank 3,36,000
7,27,000 727000
Other information
 Building fund on 1/4/214 – 3,00,000
 Equipment fund on 1/4/21 -2,50,000
 Depreciation on equipment at 10% per annum
 Investment on 1/4/21 was 3,00,000 in 7% govt securities
 Remuneration to Adhyaksha 1,000 per month Upadyaksha -500
Note: Investment of Rs 3,00,000 at 7% should yield a income of 21,000 per annum but only
5,000 is received and hence o/s interest is = [21,000 -5,000] = 16,000.
As govt and local bodies follow FBA that is found based accounting
Any receipt or payment from the found should be adjusted against the found:
Equipment fund
Opening bal - 2, 50,000
(+)Receipts - 1,80,000
4,30,000
(-)Purchased - 2,00,000
Bal as on 31/3/22 2,30,000
The above is based on the fund accounting under which any receipts towards a specific
fund should be added to the fund and payments from the fund
Building fund : (FBA )
Opening bal = 3,00,000
(+) Receipt = 2,00,000
 5,00,000
(-)Purchases XX
Bal on 31/3/22 5,00,000

Gotigere gram Panchayat

Statement of income and expenditure for the year 31/3/22
Particulars
Income
House tax 70,000
Toll tax 30,000
Market and fare tax 18,000
Annual grant (revenue) 80,000
Rent received 48,000
Interest on investment-5,000
(+)accrued -16,000 21,000
Primary and secondary education - 48,000
Total (A) 3,15,000
Expenses
Wages and salaries 24,000
Remuneration to Adhyaksha -10,000
(+)o/s (1000*12=12,000) 2000 12,000
Remuneration to Upadyaksha – 5000
(+)o/s (500*12=6000) 1000 6,000
Conveyance 12,000
Road and other maintenance 20,000
Dept. on rice mill equipment
2,00,000*9/12*10/100 15,000
Market and fare expenses 20,000
Primary health care expenses (PHC) 24,000
Education expenses 50,000
Other expenses 12,000
Total (B) 1,95,000
Excess of income (A-B) 1,20,000

14 From the following R & P A/c of Gulbarga Municipality for the year ended 31/3/22.
Prepare an income and expenditure statement.
Receipts ₹ Payments ₹
To bal b/d:
Cash 58,000 By maintenance of public 2,35,000
Bank 3,20,000 places
To Electricity charges 2,80,000 By salaries & wages 3,80,000
To water charges 1,00,000 By repairs and renewals to
vehicles 20,000
To income from investment 82,000 By primary and secondary
school expenses 1,75,000
To road cutting charges 17,000 By mid-day meal expenses 2,80,000
To amount received from By remuneration to the
donors for scholarship fund 5,00,000 standing committee members 1,40,000
To fines and penalties 35,000 By maintenance of primary
health unit 86,000
To house property tax 3,10,000 By social welfare measures to
the economically weaker 80,000
section
To rent from commercial By fresh investment made in
complex owned by 1,23,000 government securities 4,00,000
municipality
To primary & secondary 5,56,000 By bal c/d:
receipt Cash 20,000
Bank 5,65,000
23,81,000 23,81,000
Other information:
 Outstanding tax on commercial properties ₹ 22,000.
 Advance house property tax received and included in the above ₹ 5,000.
 Opening stock of medicines ₹ 14,000 and closing stock ₹ 13,000 in primary health centre.
 Depreciation on equipment ₹ 24,000 and vehicles ₹ 28,000 to be provided.
 There is no scholarship fund on 1/4/21.
Soln: Gulbarga municipality
Statement of Income and expenditure for the year ended 31/3/22
particulars ₹ ₹
Income:
Electricity charges 2,80,000
Water charges 1,00,000
Income from investment 82,000
Road cutting charges 17,000
Fines and penalties 35,000
House property tax -- 3,10,000
(-) advance -- 5,000 3,05,000
Rent from commercial building -- 1,23,000
(+) o/s -- 22,000 1,45,000
Primary & secondary receipt 5,56,000
Total (A) 15,20,000
Expenses:
Maintenance of public places 2,35,000
Salaries and wages 3,80,000
Repairs and renewals to vehicles 20,000
Primary and secondary school expenses 1,75,000
Mid-day meal expenses 2,80,000
Remuneration to the standing committee 1,40,000
Maintenance of primary health care --- 86,000
(+) opening stock --- 14,000
--- 1,00,000
(-) closing stock --- 13,000
87,000 87,000
Social welfare expenses 50,000
Depreciation on equipment 24,000
Depreciation on vehicles 28,000
Total (B) 14,49,000
Excess of income over expenditure 71,000
Note: investment purchased is an asset purchased and hence a capital expenditure and will not
appear in income and expenditure statement.

Scholarship fund:
Particulars ₹
Opening balance Xxx
(+) amount received towards scholarship 5,00,000
5,00,000
(-) payments Xxxx
Closing balance on 31/3/22 (under FBA) 5,00,000

15 The following is the R & P A/c of Chamrajnagar Municipal corporation for the year
ending 31/3/22. Prepare a statement of Income & Expenditure.
Receipts ₹ Payments ₹
To cash in hand b/d 61,000 By maintenance of public places 17,500
To bank bal b/d 2,80,000 By other maintenance charges 20,000
To bal in treasury 2,00,000 By wages and salaries 80,000
To license fee receipt 4,00,000 By travelling and conveyance 14,000
To taxes on Motor vehicles 22,000 By primary and secondary
education expenses 31,000
To toll tax 13,000 By mid-day meal expenses 20,000
To tax on non-motor vehicles 16,000 By market and fair expenses 26,000
To stamp duty and registration 6,500 By sports expenses 9,000
fees
To advertisement tax 9,000 By art and culture expenses 4,000
To house tax 7,000 By fertilizers 1,10,500
To tax on non- residential 16,500 By remuneration to adhyaksha
property [10,000 per month] 55,000
To interest from investments 6,250 By remuneration to
upadhyaksha 27,000
[6,000 per month]
To hire charges on equipment 56,000 By allowance to standing
committee members 7,000
To primary & secondary 15,000 By hospital & dispensary 30,000
education expenses
To receipts from market and fair 19,000 By family pension 20,000
To fines and penalties collected 5,500 By SC/ST welfare expenses. 21,000
To sanitation and sewerage 17,500 By seeds purchased 95,000
receipts
To maintenance grant from state By sanitation & sewerage 9,000
govt 1,50,000 expenses
To sale of fertilizers 14,000 By cash c/d 14,000
By bank c/d 5,04,250
By balance in treasury 2,00,000
13,14,250 13,14,250
Other information:
 Opening stock of seeds ₹ 11,000 and closing stock ₹ 16,500.
 Closing stock of fertilizers ₹ 85,000.
 Outstanding income from non-residential property ₹ 9,000.
 Depreciation on vehicles ₹ 12,000 and office equipment ₹ 2,000 other equipment ₹
14,000.

Soln: Chamrajnagar Municipal Corporation

Statement of Income and expenditure for the year 31/3/22
Particulars ₹ ₹
Income:
License fees 4,00,000
Tax on motor vehicles 22,000
Toll tax 13,000
Tax on non-motor vehicles 16,000
Stamp duty & registration fee 6,500
Advertisement tax 9,000
House property tax 7,000
Non- residential property tax -- 16,500
(+) o/s -- 9,000 25,500
Interest on investment 6,250
Hire charges on equipment 56,000
Primary & secondary education expenses 15,000
Market and fare receipts 19,000
Fines and penalties 5,500
Sanitation and sewerage 17,500
Sale of fertilizer 14,000
Maintenance grant 1,50,000
Total (A) 7,82,250
Expenses:
Maintenance of public places 17,500
Other maintenance charges 20,000
Wages and salaries 80,000
Travelling and conveyance 14,000
Primary and secondary expenses 31,000
Mid-day meal expenses 20,000
Market and fair expenses 26,000
Sports expenses 9,000
Art and cultural expenses 4,000
Fertilizers --- 1,10,500
(-) closing stock --- 85,000 25,500
Remuneration to upadhyaksha -- 55,000
(+) O/s -- 65,000 1,20,000
Remuneration to adhyaksha --- 27,000
(+) o/s --- 45,000 72,000
Standing committee members allowance 7,000
Hospital & dispensary expenses 30,000
Family pension 20,000
SC/ST welfare expenses 21,000
Seeds purchased -- 95,000
(+) opening stock -- 11,000
(-) closing stock -- (16,500) 89,500
Sanitation and sewerage expenses 9,000
Depreciation on vehicle 12,000
Depreciation on office equipment 2,000
Depreciation on other equipment 14,000
Total (B) 6,43,500
Excess of income over expenditure 1,38,750

16 The following Receipt & Payment of Bidadi Municipality for the year ending 31/3/22.
Receipts ₹ Payments ₹
To cash bal b/d 29,000 By maintenance of public parks 1,17,500
To bank bal b/d 1,60,000 By wages and salaries 1,90,000
To electricity charges 1,40,000 By vehicle expenses 10,000
To water charges 90,000 By primary and secondary
education expenses 87,500
To income from investment 46,000 By mid-day meal expenses 1,40,000
To road cutting charges 8,500 By remuneration to adhoc
committee members 70,000
To initial deposit received for By Primary Health Care 43,000
water connection 2,50,000 expenses
To fines and penalties 16,500 By family pension 40,000
To house tax 17,500 By investment in govt securities 1,50,000
To commercial property tax 1,50,000 By cash bal c/d 10,000
To primary and secondary 2,83,000 By bank c/d 3,32,500
education
11,90,500 11,90,500
Adjustment:
 O/s house property tax – ₹ 25,000.
 O/s commercial property tax - ₹ 25,000.
 Opening stock of medicines ₹ 28,000 and closing stock ₹ 19,000.
 Depreciation on equipment ₹ 12,000 and on vehicles ₹ 4,000.
 Provide ₹ 14,000 as advance fees received in respect of primary and secondary education.

Soln: Bidadi Municipal Corporation

Statement of Income and expenditure for the year ended 31/3/22
Particulars ₹ ₹
Income:
Electricity charges 1,40,000
Water charges 90,000
Income from investment 46,000
Road cutting charges 8,500
Fines and penalties 16,500
House tax --- 17,500
(+) O/s --- 25,000 42,500
Commercial property tax --- 1,50,000
(+) O/s --- 25,000 1,75,000
Primary and secondary education --- 2,83,000
(-) advance --- (14,000) 2,69,000
Total (A) 7,87,500
Expenses:
Maintenance of public park 1,17,500
Wages and salary 1,90,000
Vehicle expenses 10,000
Primary and secondary education expenses 87,500
Mid-day meal expenses 1,40,000
Remuneration to committee members 70,000
Primary Health Care expenses -- 43,000
(+) opening stock -- 28,000
(-) closing stock -- (19,000) 52,000
Family pension 40,000
Depreciation on equipment 12,000
Depreciation on vehicles 4,000
Total (B) 7,23,000
Excess of income over expenditure [A – B] 64,500

17 The following is the Receipts and Payment A/c of Alur Gram Panchayat for the year
ended 31/3/22.
Receipts ₹ Payments ₹
To balance b/d By wages and salaries
Cash 10,000 [1,500 per month] 12,000
Bank 4,000
Treasury 10,000
To house tax 35,000 By remuneration to adhyaksha 10,000
 To toll received 20,000 By remuneration to 2,500
upadhyaksha
To fair and market tax 4,000 By conveyance 5,000
To advertisement received 24,000 By road maintenance 11,000
To maintenance grant from By equipment purchased on
state govt 35,000 1/10/21 1,00,000
To equipment grant 95,000 By market and fair expenses 10,000
To building and library grant 1,00,000 By primary health care 12,000
To interest received 2,500 By education expenses 25,000
To primary and secondary By miscellaneous expenses 6,000
education 24,000
By expenses towards library
building 1,00,000
By balance c/d:
Cash 7,000
Bank 63,000
3,63,500 3,63,500
Adjustment:
 Building fund 1/4/21 - ₹ 1,50,000.
 Equipment fund 1/4/21 - ₹ 1,25,000.
 Provide depreciation on equipment at 12% p.a.
 On 1/4/21 the FD with the bank at 6 % p.a. interest was ₹ 4,00,000.
Prepare a statement of Income and Expenditure.

Soln:
FBA [Fund Based Accounting]
Building fund: Equipment fund:
Opening balance 1,50,000 Opening balance 1,25,000
(+) Receipts 1,00,000 (+) Receipts 95,000
2,50,000 2,20,000
(-) Payments 1,00,000 (-) payments 1,00,000
Balance on 31/3/22 1,50,000 Balance on 31/3/22 1,20,000

FD on 1/4/21 at 6% p.a. Int = 4,00,000. So, interest accrued is 4,00,000 x 6% = 24,000.

Balance – 24,000 – 2,500 = 21,500 should be adjusted as accrued in income and expenditure A/c.

Alur gram panchayat

Statement of Income and Expenditure for the year ended 31/3/22.
Particulars ₹ ₹
Income:
House tax 35,000
Toll received 20,000
Fair and market tax 4,000
Advertisement received 24,000
Primary and secondary education 24,000
Maintenance grant 35,000
Interest received -- 2,500
(+) Accured [4,00,000 x 6%] --21,500 24,000
Total A 1,66,000
Expenses:
Wages & Salaries --- 12,000
(+) O/s --- 6,000 18,000
Remuneration to Adhyaksha 5,000
Remuneration to upadhyaksha 2,500
Conveyance 5,000
Road maintenance 4,000
Market and fair expenses 10,000
Primary health care 12,000
Education expenses 25,000
Miscellaneous expenses 6,000
Deprecation on equipment
[1,00,000 x 5% x 6/12] 7,500
Total B 1,02,000
Excess of income over expenditure 64,000

18 The following is the Receipts and Payments of Kollegala Municipality:

Receipts ₹ Payments ₹
To bal b/d:
Cash 19,000 By maintenance of public
Bank 1,60,000 places 67,500
To electricity charges 40,000 By salaries and wages 1,40,000
To water charges 45,000 By conveyance expenses 60,000
To road cutting charges 3,500 By primary and secondary 37,500
education expenses
To fees received from various By mid-day meal expenses 90,000
registration transactions 41,000
To initial deposits for new By remuneration to members
water connection 2,50,000 of standing committee 70,000
To fines and penalties 16,500 By maintenance of Primary
Health Centre 43,000
To house property tax 12,500 By old age pension 20,000
To rent from commercial
property 1,05,000 By SC/ST welfare expenses 20,000
To primary and secondary By Investment in Govt
education 20,000 securities 1,50,000
To other receipts 8,000 By bal c/d
Cash 10,000
Bank 12,500
7,20,500 7,20,500
Adjustment:
1. Outstanding house property tax – ₹ 16,000.
2. Advance rent received from a tenant in commercial property - ₹ 12,000.
3. Opening statement of medicines - ₹ 9,000 and closing stock ₹ 12,000 in the primary
health centre.
4. Depreciation on the various equipment ₹ 5,000 and on computers ₹ 6,000.
5. O/s fees from primary and secondary education ₹ 7,000.
Prepare a statement of Income and Expenditure as on the above date.

Soln: Kollegala Municipality

Particulars ₹ ₹
Income:
Electric charges 40,000
Water charges 45,000
Road cutting charges 3,500
Fees received from various registration 41,000
Fines and penalties 16,500
House property tax -- 12,500
(+) O/s -- 16,000 18,500
Rent from commercial property -- 1,05,000
(-) advance -- 16,000 93,000
Primary and secondary education -- 20,000
(+) O/s -- 7,000 27,000
Other receipts 8,000
Total A 2,92,500
Expenses:
Maintenance of public places 67,500
Salaries and wages 1,40,000
Conveyance expenses 60,000
Primary and secondary expenses 37,500
Mid-day meal 90,000
Remuneration to committee members 70,000
Maintenance of health care -- 43,000
(+) opening -- 9,000
(-) closing --(12,000) 40,000
Old age pension 20,000
SC/ST welfare expenses 20,000
Depreciation on equipment 5,000
Depreciation on computer 6,000
Total (B) 5,56,000
Excess of expenditure over income 2,63,500

19 The following is the Receipts and Payments of Begur Municipal corporation for the year
ended 31/3/22.

Receipts ₹ Payments ₹
To bal b/d: By maintenance of community
Cash 50,000 assets 1,50,000
Bank 5,64,000
Treasury 6,00,000
To fees for license and other 5,20,000 By salaries and wages 3,20,000
To taxes on motor vehicle 1,76,000 By travelling and conveyance 56,000
To taxes on non-motor vehicle 56,000 By education expenses 1,24,000
To advertisement 1,32,000 By mid-day meal expenses 80,000
To house property tax 76,000 By market and fair expenses 1,04,000
To tax on commercial building 1,60,000 By sports expenses for
conducting a regional
competition 36,000
To hire charges on equipment 1,56,000 By health care expenses 1,20,000
To rent from building 1,44,000 By family pension 80,000
To receipts from market 2,84,000 By expenses for the welfare of
economically down trodden
sections 84,000
To fines and penalties 52,000 By stationary purchased 3,80,000
To sewerage and sanitation 70,000 By sewerage and sanitation 2,36,000
expenses
To electricity charges 5,50,000 By bal c/d:
Cash 37,000
Bank 1,71,000
Treasury 5,00,000
To bank interest 2,40,000
10,78,000 10,78,000
Adjustment:

 Depreciation on equipment – ₹ 36,000.

 Stock of stationery - ₹ 57,000.
 O/s remuneration to the committee members - ₹ 48,000.
 O/s remuneration to adhyaksha and upadhyaksha – 60,000.
 Advance rent - ₹ 20,000.

Soln: Begur municipality corporation

Statement of Income and expenditure for the year ended 31/3/22.
Particulars ₹ ₹
Income:
Fees for licenses 5,20,000
Taxes on motor vehicle 1,76,000
Taxes on non-motor vehicle 56,000
Advertisement 1,32,000
House property tax 76,000
Tax on commercial building 1,60,000
Rent from building -- 1,44,000
(-) advance --(20,000) 1,24,000
Hire charges on equipment 1,56,000
Receipts from market 2,84,000
Fines and penalties 52,000
Sewerage and sanitation 70,000
Electricity charges 5,50,000
Bank interest 2,40,000
Total A 25,96,000
Expenses:
Maintenance of community assets 1,50,000
Salaries and wages 3,20,000
Travelling and conveyance 56,000
Education expenses 1,24,000
Mid-day meal expenses 80,000
Market and fair expenses 1,04,000
Sports expenses 36,000
Health care expenses 1,20,000
Family pension 80,000
Welfare of Economically weaker section 84,000
Stationary purchased -- 3,80,000
(-) closing stock -- 57,000 3,23,000
Sewerage and sanitation expenses 2,36,000
Depreciation on equipment 36,000
O/s remuneration to committee members 48,000
O/s remuneration to adhyaksha and upadhyaksha. 60,000
Total B 18,57,000
Excess of income over expenditure 7,39,000

20 The following is the Receipts and Payments A/c of village Panchayat for the year
31/3/22.
Receipts ₹ Payments ₹
To bal b/d:
Cash 56,000 By various maintenance 2,70,000
Bank 40,000 changes
Treasury 6,00,000
To fees 1,60,000 By salaries & wages 5,60,000
To amount from market and 1,80,000 By conveyance 1,40,000
fairs
To water charges 1,64,000 By Education expenses 2,50,000
To fines and penalties 66,000 By mid-day meal expenses 3,60,000
To house tax 50,000 To remuneration to gram
panchayat expenses 2,80,000
To sale of seeds and fertilizers 4,20,000 By health care expenses 1,72,000
To grants from state govt 1,12,000 By family and old age pension 1,60,000
To other receipts 1,14,000 By rice mill equipment
purchased 6,00,000
 By bal c/d:
Cash 20,000
Bank 10,000
Treasury 60,000
28,82,000 28,82,000
Adjustments:
 Fees receivable - ₹ 80,000.
 Stock of medicine - ₹ 33,000.
 Depreciation of different equipment ₹ 42,000 & Vehicles ₹ 30,000.

Soln: Village Panchayat

Statement of Income and Expenditure for the year 31/3/22
Particulars ₹ ₹
Income:
Fees -- 1,60,000
(+) O/s -- 80,000 2,40,000
Market and fairs 1,80,000
Water charges 1,64,000
Fines and penalties 66,000
House tax 50,000
Sale of seeds and fertilizers 4,20,000
Grants from State Govt 1,12,000
Other receipts 1,14,000
Total A 13,46,000
Expenses:
Various maintenance charges 2,70,000
Salary and wages 5,60,000
Conveyance 1,40,000
Education expenses 2,50,000
Mid-day expenses 3,60,000
Remuneration to Gram Panchayat expenses 2,80,000
Health care expenses -- 1,72,000
(-) stock of medicine -- 33,000 1,39,000
Family and old age pension 1,60,000
Depreciation on Equipment 42,000
Depreciation on vehicles 30,000
Total B 22,31,000
Excess of Expenditure over Income 8,85,000