ACCOUNT BOOKS
I. Cash Book
- Every receipt into or payment from the treasury should at once be entered in the
Accountant’s day-book or in a register subsidiary to it. Receipts and
payments of certain departments and classes of transactions should be entered in detail in subsidiary registers, and not entered in
detail in the day-book. All other receipts and payments should be recorded separately in
detail in the Accountant’s day-book in the order of their occurrence. The total receipts or
payments recorded in working day. - There should be two day-books, one for Central transactions and the other for
State transactions. Separate subsidiary registers should also be maintained for Central and
State transactions respectively. - Cash transactions and transactions “by adjustment” should be entered in the
appropriate columns of the Central or State day-book, as the case may be. For example an
income-tax deduction made from a bill of an officer of the Andhra Pradesh Government
should be entered in the column “by adjustment” on the receipt side of the day- book (or
subsidiary register if one is maintained for income-tax receipts) of the Central
Government, while the gross amount of the bill should be entered on the disbursement
side of the day-book of the Government, partly in the column for cash
payments and partly in the column for payments “by adjustment”. When a receipt of
payment “by adjustment” is entered in a subsidiary register, the words “by adjustment”
should be written in the “remark” column. The cash items and the adjustment items for
the day should be totalled separately in each subsidiary register and taken to the
corresponding columns in the day-book
In the case of transactions involving an odd number of half-price, fractions of a
pipe should be neglected and the amount booked by all the parties concerned should be to
the pie next below.
- A monthly total should be struck in each subsidiary register and compared with
the corresponding entry in the monthly account of the treasury before the monthly
account is signed. - As soon as remittance of treasure (other than a currency remittance) is despatched, it should be entered in the day book as a payment under “Local Remittances” or
“Foreign Remittance,” as the case may be
Article 42. Where the cash business of a State treasury or sub-treasury is
conducted by the Bank, the Bank renders two daily accounts of receipts and
disbursements of Central and State Governments, the latter embracing transactions not
only on behalf of the State iii which the Bank is situated but also on behalf of other State.
Such accounts, however, rendered in respect of Central treasuries and sub-treasuries
consist of a single account for the Central Government, all transactions on behalf of any
State Government being taken by the Bank against the balance of the Central
Government.
Article 43. The transactions reported by the Bank in the daily statement of
receipts and payments should, after examination with the chalans and vouchers
accompanying it, be posted into the cash book either direct or through some subsidiary
register, in the same way as transactions taking place in non-bank treasuries.
Register of Reserve Bank Deposits
Article 44. The net difference between the total receipts and the total payments as
shown in the Bank’s daily statement should be posted in a subsidiary register called the
Register of Reserve Bank Deposits . In State treasuries this register should
be kept in two volumes – One for the Central Government and another for the State. The
figures posted in the registers should be checked and agreed with the pass book
forwarded by the Bank along with its daily account and also, in the case of State
treasuries, with the totals as shown in the daily schedule rendered by the Bank to its Head
Office, a copy of which is forwarded to the Treasury Officer.
Article 47. The transactions occurring at a sub-treasury should be reported to the
district treasury in a daily sheet (supported by vouchers) showing
receipts, disbursements and balance of the day. The receipts and disbursements should be
posted from these sheets on the day of receipt into the accounts of the district treasury in
the same way as if they had taken place at it.
Article 48. The following items of receipts or payments in the daily sheets of subtreasuries should be excluded from the accounts of the district treasury in which they will
remain as part of the balance—
(i) Remittances of cash to and from a sub-treasury from and to another subtreasury within the district or the district treasury,
(ii) Transfer of funds, through currency to and from sub-treasuries against
opposite payments at the district treasury or at another sub-treasury subordinate to the
same district treasury.
Note :—This direction shall not apply if the cash business of the remitting or
receiving treasury or sub-treasury is conducted by the Bank
Article 49. The transactions of the Central Government in a State sub-treasury
should be reported to the district treasury in separate daily sheets. The receipts and
disbursements shown in such a daily sheet should be entered item by item in the cash
book or appropriate subsidiary registers relating to Central transactions, such entries in
the accounts kept in a non-bank treasury being set off by the closing adjustment made
In the accounts kept in a bank treasury, the
totals of receipt and disbursements of the Central Government appearing in the accounts
of non-bank sub-treasury of the State should be taken into the cash book of State receipts
and disbursements under the head “886. Adjusting Account between Central and State
Governments — Central transactions in non-banking sub-treasuries”, while in the cash
book for Central transactions, there should be deduct entries in lump under the same
head, both on the receipts and disbursement side corresponding to the identical amounts
entered in the State cash book. This method of accounting should be adopted mutatis
mutandis in regard to transactions of a State Government in a Central non-bank subtreasury which renders accounts to a district treasury subordinate to that Government.
Course Purchase Query 