5.1 This minor head under the Major Head "8658Suspense Accounts'' is operated for settlement of inter-departmental and inter-governmental transactions arising in the books of the Pay and Accounts Office under Central Government, Pay and Accounts Offices of Union Territories and by the Accountants General when the other party involved is a Pay and Accounts Office. Separate Sub-head 'Transactions adjustable by, (Name of the Central PAO / State Accountant General / Defence / Railways / Posts and Telecommunications Accounts Officer concerned) is to be opened to indicate with whom the transaction by exchange of cheque/demand draft etc. is to be settled.
Transactions under this minor head represent either recoveries effected or payments made by an Accounts Officer on behalf of another Accounts Officer which are eventually to be adjusted to the final heads of account in the books of the Accounts Officer against whom the minor head "PAO Suspense" has been operated. Credit under 'PAOSuspense' is cleared by 'minus credit' when cheque is issued by the Accounts Officer in whose books initial recovery was accounted for. The amount of cheque issued is finally credited to the head '8670 Cheques and Bills 102Pay and Accounts Offices Cheques'. Debit under "PAO Suspense" is cleared by 'minus debit' on receipt and realisation of cheque/demand draft from the Accounts Officer on whose behalf payment was made, after the credit on account of cheques/bank drafts deposited with the bank appears in the receipt scroll by per contra debit to the head "8658Suspense Accounts 108Public Sector Bank Suspense" or "8675Deposits with Reserve Bank 101Central-Civil" depending upon whether the accredited Bank is a Public Sector Bank or Reserve Bank of India.
5.2.1 Suppose an IAS Officer of Punjab Government is on deputation as Dy. Secretary in the Ministry of Finance, Department of Economic Affairs and his salary bill indicates recovery of Rs. 1420 on account of GPF, HBA and AIS Group Insurance Scheme. This amount has to be passed on to the Accountant General, Punjab who is the Accounts Officer for maintaining the GPF Accounts and Accounts of long-term loans and advances etc. of All India Service Officers borne on the cadre of Punjab State.
5.2.2 Initially, when the recovery appears in the salary bill, the salary head concerned of Ministry of Finance is to be debited for the gross amount of salary (Pay+ DA+ HRA+ CCA) payable to the officer. The income tax, CGHS recovery and licence fee recoverable from the officer (in case he is in occupation of Government quarter) will be adjusted in the books of the Pay and Accounts Office of the Ministry of Finance and these credits will be booked by it under the heads namely, '0021 Taxes on Income Other than Corporation Tax101 Income Tax on Union Emoluments including pensions'. '0210 Medical and Public Health01Urban Health Services 103 Contribution for CGHS', and '0216Housing 01Government Residential Buildings 106General Pool AccommodationLicence Fee' respectively. The recoveries for which Accountant General, Punjab is the Accounts Officer will be treated as credit under the head "PAO Suspense" and will be accounted for as under:
Rs. 1420Cr. 8658Suspense Accounts
Transactions adjustable by Accountant General, Punjab.
5.2.3 After this voucher is compiled, a cheque for this amount is to be drawn and sent to the Accountant General, Punjab along with the recovery schedules of GPF / HBA and All India Group Insurance Scheme.
At this stage, the accounting entry in the compilation sheet would be as under:
Rs. 1420() Cr. 8658Suspense Accounts
-Transactions adjustable by Accountant General, Punjab
Rs. 1420Cr. 8670Cheques and Bills
102 Pay and Accounts Offices Cheques.
5.3.1 Similarly, in case the officer mentioned above has drawn a G.P.F. Advance for Rs.5,000, the voucher is to be classified in the compilation sheet as:
Rs. 5, 000Dr. 8658Suspense Accounts
- Transactions adjustable by Accountant General, Punjab.
Rs. 5, 000Cr. 8670Cheques and Bills.
102 Pay and Accounts Offices Cheques.
5.3.2 A debit claim is to be sent to the Accountant General, Punjab duly supported by the paid voucher requesting the Accountant General to send a Bank Draft or a Category 'C' cheque for the amount initially paid by the Pay and Accounts Office, Ministry of Finance.
5.3.3 On receipt of the cheque/bank draft, the same is to be sent to the branch bank accredited to the Pay and Accounts Office, Ministry of Finance along with a challan properly filled in, i.e. indicating the Pay and Accounts Office, Ministry of Finance as the depositor and the head of account to which the proceeds are to be adjusted/credited in its books. The bank would clear the cheque/bank draft and send a receipt scroll duly supported by one copy of the challan. On receipt of the receipt scroll with the challan, an accounting entry is to be made in the compilation sheet as indicated below:
Rs.5,000 Dr. 8658Suspense Accounts
108 PSB Suspense
(in case the PAO is banking with any bank other than an RBI)
Rs. 5,000 Dr. 8675Deposits with Reserve Bank
(in case RBI is the accredited bank)
Rs. 5,000 () Dr. 8658Suspense Accounts
Transactions adjustable by Accountant General, Punjab.
5.4 It is seen from the above narration that when the 'Pay and Accounts Office Suspense' is operated as credit entry for initial booking of recoveries appearing in the books of an Accounts Officer, it is cleared by "minus credit" at the time a cheque for the amount is drawn in favour of Accounts Officer concerned for adjusting the credits. Similarly, whenever a payment is made by an Accounts Officer requiring adjustments in the books of another Accounts Officer the initial payment is to be booked as a debit under the minor head "PAO Suspense". On receipt of the valuable namely, cheque or bank draft from the Accounts Officer responsible for accepting the debit and after getting credit (receipt scroll), the suspense head is relieved by 'minus debit' by per contra debit to '8658Suspense Accounts 108 PSB Suspense' or '8675Deposit with Reserve Bank 101 Central-Civil' as the case may be.
NOTE 1:Recoveries on account of income-tax and surcharge, licence fee for Central Government quarters, CGHS recoveries in respect of officers on deputation with Central Government will NOT be booked under any suspense head but will be booked to the final heads of accounts in the books of Central Pay and Accounts Officer.
NOTE 2:Recoveries on account of PLI premium are to be booked initially under the Head "101PAO Suspense Transactions adjustable by Director PLI, Calcutta."
NOTE 3:Other recoveries like GPF subscription, HBA recovery and MCA recovery (in case motor car advance had been drawn from the State Government), contribution to All India Services Group Insurance Scheme will be booked as credit under 'PAO Suspense' as Transactions adjustable by (name of the Accounts Officer).
5.5 The above narration indicates how the transactions are booked under the minor head 'PAO Suspense' either as credit or debit and how such initial bookings are cleared by 'minus' credit and 'minus' debit entries. In practice, however, each such transaction is not settled as and when it takes place. The transactions for a whole month are grouped distinctly as gross debit and gross credit under the sub-head "Transactions adjustable by Accounts Officer "X" concerned and then the amount as due to Accounts Officer 'X' or due from Accounts Officer 'X' is worked out and necessary cheque or claim for net amount is issued/raised respectively.
5.6.1 Each Pay and Accounts Office is to maintain a Register of Outward Claims in Form CAM 53 in which one or two pages are to be allotted to each of the Account's Officers with whom the transactions arising in its books are adjustable. The voucher number and amount paid in that voucher are posted in this Register as and when the vouchers are compiled in the Compilation Section. Similarly, recoveries appearing as credits under 'PAO Suspense' are also posted in this Register as recoveries/receipts. At the end of the month, totals of receipts and payments on behalf of the Accounts Officer concerned say 'X', are worked out. In case the receipts are more than the payments made on behalf of the Accounts Officer 'X', it would be posted in column number 5 as net amount due to Accounts Officer 'X'. In case the payments made are more than the receipts adjustable by Accounts Officer 'X', it would appear as net amount of the claim to be preferred against the Accounts Officer 'X' in column number 4. Presuming that net amount is due to Accounts Officer 'X', a cheque for this amount is to be drawn and despatched to him supported by vouchers for payments made and schedules for recoveries effected and the number and date of the cheque alongwith forwarding letter is to be posted in column numbers 7 and 6 respectively.
In case payments are more, the payment vouchers and receipt schedules are to be sent to the Accounts Officer 'X' alongwith a forwarding letter demanding net payment and the number and dale of the letter are to be noted in column number 6. As and when a cheque is received for this amount, the number and date of the cheque is to be noted in column number 9 and on receipt of the receipt scroll from the bank containing the challan for this cheque deposited into it, a note is to be kept in column number 10.
5.6.2 Before, however, raising a debit or passing on the credit to the Accounts Officer 'X' concerned, the total payments and total recoveries made on his behalf as noted in columns 3 and 2 of this Register shall be tallied with the corresponding accounts figures as appearing in the compilation sheet. Till these two figures tally, no action is to be taken to settle the transactions under PAO Suspense with Accounts Officer 'X'.
5.6.3 An Outward Claim Register is to be maintained in Form CAM 53.
On receipt of the valuable/cheque from the Accounts Officer responsible for accepting the debit, apart from carrying out account adjustments stated above, the items of Dr/Cr shown in the Outward Claim Register should be encircled in red ink.
5.6.4 Please see Annexure 'A' for practical example.
5.7.1 Pay and Accounts Office may also receive claims from other Accounts Officers requiring final adjustments in its books. Such claims are known as Inward Claims. A Register in Form CAM 55 is to be maintained for initial record of all inward claims.
5.7.2 On receipt of an inward claim, the vouchers and schedules in support thereof are to be closely examined to ensure that the entire claim is correctly adjustable in the books of the receiving Pay and Accounts Officesay Ministry of Finance. Where the inward claim is for net receipt, the supporting cheque) bank draft is to be entered in the Register of Valuables (Form CAM-16) and the valuable is to be sent to the branch bank accredited to the Pay and Accounts Office. When the main receipt scroll containing this challan is received from the focal point bank, action has to be taken to classify all the vouchers and schedules received from the originating Accounts Officer i.e, the vouchers involving debits are to be posted under the concerned heads of accounts as debit, the receipts/ schedules are to be posted as credits under the relevant heads. Similarly, all receipt scrolls received from the bank during the month will be posted.
5.7.3 Thereafter the total of the receipt scrolls during the month is arrived at and tallied with the monthly total under column 3 of the 'Register of PSB Suspense / RB Deposits'. This total amount is then classified as debit under '8658Suspense Accounts 108 PSB Suspense' or "8675-Deposits with Reserve Bank 101Central-Civil", as the case may be.
5.7.4 In case the inward claim received demands payments from the Pay and Accounts Office, Ministry of Finance, the supporting vouchers and schedules, as indicated above, are to be thoroughly scrutinised to ensure that they all pertain to Pay and Accounts Office, Ministry of Finance. Thereafter the vouchers are to be posted in the compilation sheet under the debit heads and the schedules are to be posted similarly under the receipt heads concerned. The difference between the two is the amount fur which a cheque has been asked for. The total amount of cheques issued during the month is to be booked as credit under the Major Head "8670Cheques and Bills 102 PAO Cheques."
5.7.5 Annexure B gives an example for dealing with inward claims received in a month.
5.8.1 Maintenance of Broadsheet for suspense heads is necessary to ensure that the relevant suspense head is cleared as early as possible and the amount outstanding in 'Suspense' is duly supported by itemised details. It also facilitates of reconciliation between the broadsheet figures and the account figures on monthly basis- and rectification of error, if any, in the accounts figures.
With a view to ensuring that in all cases where payment has been made on behalf of another Pay and Accounts Officer / Accounts Officer, cheques are received from them or the receipts/recoveries effected have been finally passed on to the concerned Pay and Accounts Officer/Accounts Officer, a broadsheet of 'PAO Suspense' is kept. The total original debit/credit booked under 'PAO Suspense' during a month should be posted under columns 2(a) and 2(b) respectively of the Broadsheet of 'PAO Suspense' in Form CAM 64. The subsequent adjustment of debit/credit will be posted under columns 3(a) and 3(b) respectively as minus debit and minus credit. At this stage it is essential to make cross reference between the responding entry which has appeared in account in clearance of the original debit/credit, and the original entry in the broadsheet so as to indicate as to how and when the original entry was cleared and by which responding entry. The month of adjustment and the serial number of original entry will be noted in columns 4(a) and 4(b) respectively. In the monthly closing, the original amounts of debit/credit booked during the month will be added to the balance of debit/credit brought forward and subsequent adjustments of debit/credit during the month will be subtracted from the total so arrived. The item-wise break-up of net outstanding thus arrived at will be indicated on the right hand side. The total of the list of outstanding items under debit/credit will tally with the total under debit/credit as per monthly closing. A specimen of the Broadsheet is given at Annexure 'C'.
5.8.2 It will be ensured that the total debits/credits posted in the Register of Outward Claims (CAM-53) tally with the amounts booked against each Accounts Officer during the month. It should also be seen that all the vouchers/schedules in support of the entries are removed from the DVs and kept separately for each Accounts Officer so as to ensure that the relevant vouchers/schedules are sent to the other Accounts Officer in order to avoid delay in settlement of the claims. The settlement of debit depends on the cooperation and timely action of the other Accounts Officer. However, in cases where only credits appear there is no reason for any delay in clearing the transactions. A close watch is required to be kept on adjustment of each item. It is the responsibility of the Pay and Accounts Office to ensure that timely reminders are sent where necessary and the transactions are got cleared as early as possible.
(Reference para 5.6.4)
In the P.A.O., Ministry of Health & Family Welfare the following transactions had taken place in the month of February, 1991 requiring settlement with the A.G., U.P. Allahabad.
|Sl. No.||Voucher No.||Date||Nature of of the claim||Amount||Details|
|1.||120||7-2-91||GPF Part final withdrawal||26,000||Mr. K.
I.A.S. Dy. Secretary
borne on the UP Cadre
|2.||213||28-2-91||Salary Bill||Recovery Schedules of
IAS Jt. Secretary
borne on U.P, Cadre
|3.||214||28-2-91||Salary Bill||Recovery Schedules of
I.A.S. Dy. Secretary
borne on U.P, Cadre
Preparation and despatch of outward claim against A.G., U.P. Allahabad is explained in the prescribed forms. (Statement No. 1, 2, 3 and 4).
CAM - 53
|Vr No. & Date Challan No. & Date||Receipts/ Recoveries
|Net Amount of Claim to
be preferred (3-2)
|Net Amount due to the
other party (2-3)
|No. & Date of letter forwarding the claim||No. & Date of the Cheque issued if the amount is due to the other party||Whether figures under Cols. 2 & 3 tally with the ledger figures. If not reasons for variation||No. & Date of cheque received||No. of challan received from Bank with receipt scroll for credit of the cheque||Initials of the Accounts, Officer|
|February, 1991 1.120 dt. 7-2-1991 Mr. K IAS GPF||26,000.00|
|2 213 dt. 28-2-1991 Mr. X IAS GPF||1,200.00|
|3.214 dt. 28-2-1991||
|Mr. K. IAS||
|Total||3,840.00||26,000.00||22,160.00||PAO (S) / OC/880 dt. 18-3-1991||Yes||C.003563 dt. 30-4-1991||14 dt 3-5-1991||Sd/-PAO|
"The Accountant General, U.P.
Subject: Outward Claim No.................
The schedule (s) (Form..........) of receipts and disbursement which arose in the account of this office during the month of February 1991 and are adjustable in your books as per summary given hereafter, are sent herewith along with:
(i) Cheque/Demand Draft No................Date ..............
or (ii) the request that a Cheque/Demand Draft for Rs:22160.00 (Rupees Twenty two thousand One hundred sixty only) drawn in favour of PAO (Secretariat) Ministry of Health & F.W. may be sent to the undersigned by name, within seven days of the receipt of this claim.
Summary of outward claim
Please return the lower half of this letter, duly signed immediately, in acknowledgement.
Pay and Accounts Officer
Ministry/Department of Health & Family Welfare
Details of enclosures
(i) Schedule (s) Debits / Credits -- containing
(ii) Details of 7 Schedules / 3 Vouchers sent.
schedule of Credits adjusted by Accountant General, U.P., Allahabad
Transactions pertaining to Month of February, 1991
|No. of the accompanying
or of Schedules of recoveries etc.
|1. Mr. K. I.A.S.||GPF
|1,200 -- 00
|2. Mr. K.I.A.S.||GPF
500 - 00
|TOTAL||3840 -- 00|
|OFFICE OF THE
schedule of Debits / Credits adjusted by Accountant General, U.P., Allahabad
Transactions pertaining to Month of February, 1991
|No. of the
accompanying vouchers or
of Schedules of recoveries etc.
|1. Mr.K. I.A.S.||GPF Withdrawals||26,000 — 00|
THE 19 ..
(Reference Para 5.7.5)
P.A.O., Ministry of Finance has received an Inward Claim from the P.A.O., Ministry of External Affairs in February, 1991 enclosing the following documents.
(i) Two G.P.F. schedules for: Rs.l50/-each relating to Mr. K. an officer of Ministry of Finance on short-term deputation to Embassy of India, Kathmandu.
(ii) Voucher for T.A. advance of Rs.16,900/-drawn by an official delegation of Ministry of Finance from Indian Embassy, Japan against Ministry of Finance Sanction No...........date ........
(iii) Voucher for Rs.8,500/-for the daily allowance drawn by an official delegation from Indian Embassy, Cairo against Ministry of Finance, Sanction No............... date..................
(iv) Schedule for Rs. 9,000 representing refund in cash of M.C.A. drawn earlier by Mr. A from the Ministry of Finance before he was posted to Embassy Cairo on deputation.
(v) Voucher for Rs. 500/-as D.A. drawn by Mr. B against Ministry of Finance Sanction No...........date ..................at Embassy, Cairo.
The forwarding letter (CAM 54) indicates:
Payment Rs. 25,900.00
Net payment Rs.16,600.00
and requests a cheque for Rs. l6,600/- in full settlement of the claim.
Treatment of the Claim:
(i) The two G.P.F. schedules shall be classified as under:
Cr. 8005 State Provident Funds
Rs. 300 101General Provident Funds
(The schedules would indicate the name of the subscriber and account number. This will be sent to the GPF section for being posted in the ledger card of the official concerned.)
(ii) The voucher for Rs.16,900/-, Rs.8,500/- and Rs.500/-are to be classified as debit under the heads of account indicated in the relevant expenditure sanction quoted on them.
(iii) Receipt schedule for Rs.9,000/- will be classified as under:
Rs.9,000 Cr. 7610 Loans to Government Servants etc.
202Advances for purchase of Motor Conveyances.
(This schedule is also to be posted in the Broadsheet of Advances for purchase of Motor Conveyances against the debit entry of the officer concerned).
A cheque for Rs.16,600 is to be drawn in favour of PAO, Ministry of External Affairs and despatched to him under cover of letter in Form CAM-56.
Please see the entries in Form CAM-55 (Statement No 5).
Transactions arising in the Accounts of PAO, External Affairs adjustable in the Accounts of PAO (Finance) Department
|S.N.||No. and Date of the letter with which the account was received||Period of Account||Receipts||Payments||Net Amount due from the other party (4-5)||Net amount due to other party (54)||Particulars of Cheque/Draft||Amount||No. & Date of letter forwarding the Draft/ Cheque to the other party||Particulars of the Draft/Cheque sent to other Party||Initials of Accounts Officer||Amount placed under P.A.O. suspense and referred to Departmental Officer||No and Date of the T.E. clearing the Suspense Head||Date on which the amount appeared in bank scroll for cheques/drafts received from other party vide col. 8 and sent to bank.||Initials of Jr. A.O./ AAO||Remarks|
|received with the inward account No. & Date|
|Rs. P.||Rs. P.||Rs. P.||Rs. P.||Rs. P.||Rs. P.|
|1.||No. CA/MEA A/C (F)/ 20 dated 10-2-1991||Feb. '91||9,300.00||25,900.00||-||16,600.00||C-000421 dt. 27-2-91||16,600.00|
Note : To facilitate easy referencing of the Inward Claim, in some offices, details of the vouchers /schedules received in support of the Inward Claim are noted in columns 3, 4, and 5 leading to net amount due from the other party or due to the other party in columns 6 and 7, even though the form does not provide for such noting.
Month of 2/91
|Annual Sl. No. of original entries||Original entries arising during the month||Adjusting Entries||Particulars of Adjustment|
|Debits||Credits||Minus debit against col.2(a)||Minus credit against col.2(b)||Month of adjustment||Serial No. of original entry||T.E.No. & Date through which adjustment effected|
|1, dt. 7-2-91||26,000.00||-||18,500.00||2/91||1 of 12/90||-|
|2. dt. 28-2-91||-||2,420.00||2,500.00||2/91||2 of 1/91||-|
|3. dt. 28-2-91||-||1,420.00|
|Balance from last month||30,600||10,500|
|Col.2(a) of this month||26,000|
|Col.2 (b) of this month||3,840|
|Total for adjustment||56,600||14,340|
Adjustment during the month
|Total of Col.3(a)||18,500|
|Total of Col.3(b)||-||2,500|
Details of closing balance
|Month & Year from
|Serial No.of item||Debit||Credit|