Journal and Ledger

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

Proforma Accounts

Article 19

The operations of some departments of Government some times
include undertakings of a commercial or a quasi-commercial character, e.g., an industrial
factory or a store. Even though these may be maintained almost entirely for the benefit of
the departments, it is still necessary that the financial results of the undertaking should be
expressed in the normal commercial form so that the cost of the service or undertaking
may be accurately known. This implies the maintenance of suitable Capital, Manufacturing, Trading and Profit and Loss accounts and as the Government system of accounts,
being on a purely cash basis, is unsuitable for such commercial accounts, these are
usually kept on a proforma basis outside the general accounts of Government. The actual
transactions entering these proforma accounts except those adjusted on a liability basis
find a place primarily in the regular accounts and the commercial accounts are additional
as well as separate. These proforma accounts are maintained by the departmental
authorities themselves in such form as may be agreed upon between the Comptroller and
Auditor-General and the Government concerned.
Certain proforma accounts relating to Irrigation, Navigation, Embankments and
Drainage Projects and Government Residential Buildings are required to be prepared by
Civil Account Officers. Proforma accounts are also sometimes required to be prepared
for transactions which do not relate to commercial or quasi-commercial undertakings of
Government, e.g., transactions of the Famine Relief Fund. The form in which any
proforma accounts are prepared in account offices is determined by the Comptroller and
Auditor- General in consultation with the Government concerned