Concept and

Operation of PM

SAS PATHSHALA
 Structure of
Government Accounts

One of the most important distinctive

features of system of Government accounts
in India is the minute elaboration with which
the Financial transaction of Government
under both Receipts and Payments, are
differentiated and classified.
 SYSTEM OF
ACCOUNTING OF EXPENDITURE
IN DEFENCE

The responsibility for audit, payment

and accounting of all Receipts and
Charges pertaining to Defence
Services and Defence Organizations is
that of Defence Accounts Department
(DAD).
Form of Accounts

The Accounts of Central Government is

kept in three parts:
1. Part I - Consolidated Fund of India.
2. Part II - Contingency fund of India.
3. Part III - Public Account of India
Compilation Work in
DAD offices

 The last element of accounting classification

in DAD is in the form of code heads.

 The code-heads are unique identification for

accounting transaction which are given by
DAD.

…contd.
CHB & RD&R
 The accounting code-heads operated by DAD in
respect of Defence Orgns are contained in
Classification Hand Book - Defence Services
Receipts and Charges (CHB)
 Code heads other than Defence budget relating
to AFT, DAD, CGO, BRO, CSD, MOD(Sectt)
and Public Account and Contingency Fund of
India are contained in Pamphlet of Revenue,
Debt and Remittance Heads (RD&R
Pamphlet).
Five Tier Classification of
Defence Expenditure.
 Major Heads
 Major Head (in case of Capital Outlay)

 Minor Heads

 Sub-Heads

 Detailed Heads
Sectors
 Within each of the Divisions and sections of
Consolidated Fund, the transactions are
grouped into Sectors such as ‘General
Services’, ‘Social and Community Services’,
‘Economic Services’, etc. under which
specific functions or services shall be
grouped.
 In some cases, the sectors are, in addition,
sub-divided into sub-sectors before division
into Major Heads of Accounts.
Major, Minor and Detailed Heads

 The main unit of classification in accounts is

the Major Head.
 Major Heads generally correspond to
‘Functions’ of Govt, such as different
services like „Agriculture‟, „Defence‟ etc.
provided by the Government.
 Major Head is divided into minor heads, each
of which has a number of sub-ordinate
heads(sub-heads).
Major, Minor and Detailed Heads

 Sometimes major heads may be divided into

sub-major heads before their further division
into minor heads.
 Minor Heads identify the programme
undertaken to achieve the objectives of the
function represented by the major head.
Major, Minor and Detailed Heads

 A programme may consist of a number of

schemes or activities and these generally,
correspond to sub-heads.
 The sub-heads are further divided into
detailed heads.
 A detailed Head is termed as an object
classification.
Major, Minor and Detailed Heads

 On the expenditure side of the accounts,

detailed heads are primarily meant for
itemized control over expenditure and
indicate the object or nature of expenditure
on a scheme or activity or organization in
terms of inputs such as salaries‟, „Office
Expenses‟, „Loans‟, „Investments‟, etc.
Major, Minor and Detailed Heads

1. Sectors Services
2. Major Heads Functions
3. Minor Heads Programmes
4. Sub Heads Schemes or Activities
5. Detailed Heads Object or nature of
Expenditure
Code Numbers : DAD

 Principal Controller/Controller Offices

-by the CGDA, New Delhi

 Sections of the Controller's offices

-by the EDP Center , concerned
Punching Medium and its elements

 The basic document that goes into the

compilation of accounts is called the
Punching Medium (PM).

 A punching Medium serves as a medium

from which, data entered are taken on tape
mechanically.
 It contains information relating to Month,
CDA (code) booking the transaction,
classification code head, class of voucher,
serial number of the voucher, whether a
Receipt or a Charge and the amount.
 Preparation and Despatch of
Punching Medium

 Punching Medium - a medium from which

data entered are taken on tape mechanically.

 Separate Punching Medium - for each

class of vouchers on IAF (CDA) 336.

 Class 8 Vouchers – on IAF (CDA) 338-A

 Punching Medium
I.A.F. (CDA) – 336 (Half)

Month…………C.D.A……....Section………..Class of Vr……… ..Vr. No…………

Classification Receipt Classification Charges

Code Code
R. (1) M.R. (2) C. (3) M.C.
(4)
Rs. P Rs. P Rs. P Rs. P
Vouchers and its Class

Cash Vouchers 1
Transfer Entries 2
I.D. Schedules (Civil) 3
Abstract of Receipt and Charges 4
Cash Accounts 5
Railway Bills 6
I.D. Schedules (Defence) 8
MES Bills 9
Cash Vouchers

 Punching Medium for cash vouchers are

prepared simultaneously the payment
enfacement is made on the vouchers.

 These are numbered serially after the

vouchers have been passed by the Officer-
in-Charge.
Transfer Entries

Separate PM for each transfer entry is

prepared , where necessary and numbered
serially from a register maintained for the
purpose.
I.D. Schedules (Civil)

 This class of PM is used for adjusting items

originating in the books of Civil accounts for
which inward claims are received from them
and which are settled through advice to RBI
CAS Nagpur.
 Numbered serially from the Numbering
Register maintained for the purpose in the
section.
Abstract of Receipt and Charges

Each unit or formation in respect of which

an Abstract of Receipts and Charges is
prepared, is given a fixed code number and
this fixed code number is recorded as the
section numbers on the PM prepared from
the Abstract of Receipts and Charges.
Cash Accounts

Formations drawing cheques against

cash assignments like Military Farms,
Remount Depots, DPDOs, Military Treasure
Chests, etc., are assigned fixed unit code
and the Punching Media are prepared in
adjustment of their cash accounts.
Railway Bills

The Railway Bills and Punching Media

pertaining thereto are given voucher
numbers allotted to each Railway.
I.D. Schedules (Defence)

I.D. Schedules (Defence) are prepared

on IAF(CDA) 338-A. The responding
Controller indicates adjustment on the I.D.
Schedules in Part “B” provided for the
purpose.
MES Bills

This class of PM is used for adjustment of

payments made by cheques issued by
PCDA/CDA Office in respect of MES
formations for credit to the Public
Fund/Personal Account on account of Pay
and Allowances of MES Civilian officers,
Industrial/non-Industrial staff., TA Bills and
Miscellaneous claims etc.
Codification pattern

 The codification pattern for detailed code

heads under each Minor Head of CHB and R
D & R Pamphlet. consists of 7 digits.
 The first two digits denote category prefix,
the next three digits denote the main part of
the code head and the last two digit denote
suffix to the main code head.
 There are about 1800 code heads in use in
CHB and 900 code heads in RD&R
Pamphlet.
Various Compilations Printed by
EDP Centre

 Sectional Compilations.
 Book Compilation of R.D.&R. Heads.
 Consolidated Compilations of All India
Defence Services Receipts and Charges.
 Consolidated Compilation of R.D.&R.
Heads.
contd…
Various Compilations Printed by
EDP Centre

 Analysis of All India Defence Services

Receipts and Charges by Controllers.
 Compilations for March (Supplementary)
and (Supplementary Corrections).
 MIS is also provided by EDP Centres.
Sectional Compilation

 A separate compilation for each section

of a Controller office.
 Printed on CCO-3.
 Exhibit the amount compiled under each
code head during the month.
 Furnished by EDP Centres to the
controllers concerned by 11th of the
following month.
contd…
Sectional Compilation

 Codewise data file on magnetic tape is

furnished by EDP Centre concerned to the
EDP Centre , New Delhi.

 Magnetic tape must reach on or before 9th

of the following month.
Format of Sectional Compilation

Office of the Pr.C.D.A.(CC) Lucknow Page No.2

Sectional Compilation fir Section: 1000 Month: 06/2009

Amount

Total for Code Head :-

……………………..
Rectification / Adjustment of
Compilation Errors

 Sectional Compilation should be reviewed

with reference to the PM.

 In case of any variation, the same may be

readjusted in the month‟s account under
operation.
Preparation of PM: Case 1

Adjustment of 0/020/80 (MROs):

Accounts Section:
Remittance into Banks & Reserve Bank Deposits-
Treasuries Defence
0/020/80 (-) CH 0/021/00 (+) Ch
Audit Section:
Service +Rt 0/020/80 +Ch
Head
Preparation of PM: Case 2

Cheques & Bills 00/020/81:

Audit Section while issuing Cheques:
CB (0/020/81) +Rt Service Head (+) Ch

Account Section while adjusting debit

scrolls/paid cheques:
(0/020/81) (-)Rt 0/021/00 +Rt
(RB deposits)
Preparation of PM: Case 3

Passing a Bill of Contractor for Rs. 25000 deducting

postal charges Rs. 25 :

+Rt -Rt (+) Ch (-) Ch

CB Rs.24975 Code1 25000 --

Code 2 -- 25
Preparation of PM: Case 4

A TA/DA Bill (Rs.10000) passed but not drawn by the

individual( Cancellation of Cheque):
+Rt -Rt (+) Ch (-) Ch

CB 10000 -- Code1 10000 --

00/020/81 10000 Code 1 -- 10000

Preparation of PM: Case 5

A TA/DA Bill (Rs.10000) passed, drawn by the individual

but deposited through MRO:
+Rt -Rt (+) Ch (-) Ch

CB 10000 -- Code1 10000 --

00/020/80 10000 --
Code 1 -- 10000
 Preparation of PM: Case 6

Salary Bill:
P&A=40000,HRA=5000, TPT=3000, GPF=10000, Electric=2000,
CGEIS=30,CGHS=325, HBA=4500

+Rt -Rt +Ch -Ch

CB 31145 P&A 40000
GPF 10000 TPT 3000
CGEIS 30 HRA 5000
CGHS 325
Electric 2000
HBA 4500
Preparation of PM: Case 7

Payment of HBA of Rs. 45000

+Rt -Rt +Ch -Ch

CB 450000 HBA 450000