Suspense Accounts Manual
(First Edition)

Issued by
The Controller General of Accounts
Ministry of Finance,
(Department of Expenditure)
New Delhi


Para No.


General 1.1
Concepts of Government Accounts 1.2
Divisions of Government Accounts 1.3

Cheques and Bills

Introductory 2.1
Categories of Cheques and their use 2.2
Issue of Cheques by PAO 2.3
Issue of Cheques by Cheque Drawing DDO 2.4
Procedure for preparation of daily payment scrolls by Reserve Bank of India / Public Sector Banks and their submission to Pay and Accounts Office 2.5
Scrutiny of Date-wise Monthly Statement with reference to Daily Main scrolls and clearance of the head "Cheques and Bills" 2.6
Currency of Cheques - their revalidation and issue of fresh cheques in lieu of time-barred cheques 2.7
Maintenance of registers/records in Pay and Accounts Office 2.8
Reconciliation of amount of cheques delivered with figures as per compilation sheet 2.9
Public Sector Bank Suspense
Introductory 3.1
Operation of the head PSB Suspense 3.2-3.3
Submission of daily scrolls of receipts and payments 3.4
Scrutiny of scrolls by Pay and Accounts Office 3.5
Adjustment of amounts paid by Public Sector Banks in the Pay and Accounts Office 3.6.1-3.6.2
Procedure for posting of Receipt Scrolls 3.7
Procedure for checking of D M S by Pay and Accounts Office 3.8.1-3.8.2
Procedure for reconciliation by PAO of the figures appearing in the Put Through Statement 3. 9.1-3.9.5
Clearance of balances under PSB Suspense 3.10
Procedure in case of C.B.E.C. 3.11.1
Procedure in case of C.B.D.T. 3.11.2
Deposits with Reserve Bank 3.12.1 - 3.12.3
Chapter - 4
Reserve Bank Suspense - Central
Accounts Office
Introductory 4.1
Procedure for payment of Loans/Grants-in-aid to Slate Governments other than Jammu & Kashmir and Sikkim 4.2.1 - 4.2.4
Procedure for repayment of Loans and payment of interest thereon by the State Governments 4.3.1 - 4.3.3
Procedure for payment of Loans/Grants-in-aid to Government of Jammu & Kashmir Note 1 
below Para 4.3
Procedure for payment of Loans/Grants-in-aid to Government of Sikkim Note 2 
below Para 4.3
Procedure for payment of Loans/Grants-in-aid to Union Territory Governments with Legislature Note 3 
below Para 4.3
Procedure for repayment of loans and interest thereon by Governments of Jammu & Kashmir, Sikkim and Union Territory Governments Note 4 below Para 4.3
Pay and Accounts Office Suspense
Introductory 5.1
Method of operation of PAO Suspense 5.2.1 - 5.5
Procedure for settlement of Outward Claims 5.6.1 - 5.6.3
Example for dealing with Outward Claims 5.6.4
Procedure for settlement of Inward Claims 5.7.1 - 5.7.4
Example for dealing with Inward Claims 5.7.5
Procedure for maintenances of Broadsheet of PAO Suspense 5.8.1 - 5.8.2
Suspense Account (Civil) and other Suspense Heads
Suspense Account (Civil) 6.1.1
Outstation Pay Bills for March -   
Unclassified Suspense - 
Challans/Vouchers Suspense -
Cheques cancelled but paid
HBA Suspense/MCA Suspense 6.1.6
Provident Fund Suspense 6.2.1—6.2.7
External Assistance Suspense 6.3.1—6.3.4
Remittances between England and India through RBI 6.4.1—6.4.5
Suspense Heads under Public Works System
Introductory 7.1.1
Accounts Heads 7.2.1—7.2.2
Procedure for operating Minor Head 799—Suspense under the Budgeted Heads of Account 7.3.1—7.3.3
Procedure for operating Material Purchase Settlement Suspense Account 7.4.1—7.4.4
Action to be taken by the PAO in the Broadsheet of Material Purchase Settlement Suspense Account and Public Works Remittances 7.5.1—7.5.3
Cash Settlement Suspense Account 7.6
Inter-Departmental Transactions 7.6.1
Dispensing with cash settlement in certain cases Exception below para 7.6.1
Inter-Divisional Transactions -
Remittances between Ministry of External Affairs and Missions
Introductory 8.1
Procedure to be followed for issuance of sanctions 8.2.1—8.3.2
Procedure for adjusting entries 8.4.1—8.4.2
Practical Examples 8.4.3
Adjustment Account with State Governments/ Defence/Railways/ 
Posts on account of Stores Purchases
Introductory 9.1
Procedure of settlement of payments made on behalf of the State Governments and Railways, Defence and Department of Posts 9.2.1
Procedure to be followed in respect of transactions relating to HCI London and ISM Washington 9.2.2
Procedure for operating Adjusting Account heads by PAO under CCA Supply for the supplies made to State Governments/Railways/Defence and Department of Posts 9.3.1
Procedure to be followed for operating Adjusting Account heads by CCA Min. of External Affairs for the purchases made by HCI London and ISM Washington 9.3.2
Action to be taken by PAO under CCA Supply for issue of advices to CAS, RBI, Nagpur 9.4.1—9.4.3
Procedure for reversal of erroneous debits by State Governments etc. through RBI, CAS, Nagpur 9.5
Procedure for adjustment of amount redebited by State Accountants General  etc. 9.6.1—9.6.3
Procedure to be followed where the clearance Memo from the RBI is received before rejected claim  9.7.1
Procedure on receipt of rejected claims 9.7.2