Accounts Code Volume III

PUBLIC WORKS ACCOUNST (PWD)

Sl Points Key points
No.

1. The forms and returns embodied in this Code are those prescribed by the Govt. in
consultation with the AG to suit local requirements.
2. The AG may introduce such changes in the details of accounts returns as he may deem
necessary.
3. Any proposal to amend any of the accounts forms or to introduce a new form should
be submitted to Govt. through the AG.
4. Transferring any Public Works to the administrative control of a department other AG in
than the Public Works Department and that department itself arranges for the consultation
execution of those works, the detailed classification of the transactions connected with the CAG
with the works so transferred should be such as determined by the
5. In the case of all departments of the Central and State Govt. other than Public Works Departmental
department whose initial and subsidiary accounts are compiled departmentally, the code, manual or
orders and instructions contained regulation
6. In the event of any difference of opinion between the AG and the departmental
authority concerned, the question should be referred by the AG to the Comptroller
and Auditor General for issue of necessary directions.
7. A payment made on a running account to a contractor for work done by him but not Advance
measured. Payment
8. In the accounts of works this term indicates all outstanding or anticipated credits, Assets
which have to be taken in reduction of final charges,
9. Includes legal tender coin, notes, cheques, deposit-at-call receipts of scheduled banks Cash
and drafts payable on demand including one rupee revenue stamp
10. Completion of work Abandonment
Completed work Abandoned
11. In respect of the accounts of works, the term indicates the incidental expenses of a Contingencies
miscellaneous character which cannot be appropriately classified under any distinct
sub-head or sub-work yet pertain to the work as a whole
12. Any kind of undertaking, written or verbal, express or implied, by a person, not being Contract
a Govt. servant, or by a syndicate or firm, for the construction, maintenance or repairs
of one or more works, for the supply of materials; or for the performance of any
service in connection with the execution of works or the supply of materials.
13. The term is applied to works of construction or repair the cost of which is met, not Deposit Work
out of Govt. funds, but out of funds from non-Govt. sources, which may either be
deposited in cash or otherwise placed at the disposal of the Divisional Officer.
14. those charges pertaining to a project, work or job which are incurred directly for its Direct Charges
execution and are included in the regular accounts of it
15. Those charges which pertain or are incidental to a work, project or workshop job or Indirect Charges
manufacture job, but which are not incurred directly and solely in connection
therewith and thus cannot be taken directly into such regular account
16. Those items of revenue receipts which are realised in connection with a work or Direct Receipt
project
17. Those receipts which pertain, or are incidental to a scheme or work, but cannot be Indirect Receipt
taken directly into regular account
18. This term is applied to an executive officer of the Public Works Department who is not Divisional
subordinate to another executive or disbursing officer of the department, even officer
though the executive charge held by him may not be recognised as a “division” by the
Govt. concerned. It Includes officer in charge of an independent Sub-division
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
19. Disbursing officer of other departments, if they spend Public Works Funds and are
required to render their accounts direct to the AG,
20. The last payment on a running account made to a contractor on the completion or Final Payment
determination of his contract and in full settlement of the account.
21. The standing advance of a fixed sum of money given to an individual to enable him to Imprest
make certain classes of disbursements which may be entrusted to his charge by the
Divisional Officer or the Sub divisional Officer.
22. A term applied to a disbursement of any kind on a running account, not being the final Intermediate
payment. It includes a “Secured advance” and an “on account payment” Payment
23. The cost per unit fixed in respect of an article borne on the stocks of the Department Issue rate
at a valuation for the purpose of calculating the amount creditable to the sub-head
concerned of the stock account (i.e. the sub-head under which the article is classified)
by charge to the account or service concerned,
24. When any quantity of that article is issued from stock “handling charges” and “storage
charges” will be included in the “Issue Rate” by adding a suitable percentage based
on the carriage and other incidental charges of the previous year, and storage charges
as reviewed and fixed at the beginning of a year.
25. When used in respect of accounts of works, this term includes all anticipated charges Liabilities
which are adjustable as final charges, but have not been paid, or adjusted, regardless
of whether or not they have fallen due for payment, or adjustment or having fallen
due, have or have not been placed to the credit of the persons concerned in a
suspense head subordinate to the accounts of the work concerned.
26. Works executed by the Public Works Department on behalf of a Municipality, Port Local Loan
Trust or other Corporation, when the cost of the works is to form part of a loan given Works
to it by Govt. for the purpose.
27. Payment whether full or partial made a running account to a Contractor in respect of On account
work done or supplies made by him and duly measured subject to final settlement. payment
28. The term indicates the charges (expenditure) incurred on the manufacture operations Operation
connected with the general requirements of works or for a specific work or job. charges
29. The value of the furnished products by a manufacturing or workshop units Out-turn
30. The total cost of a work or supply divided by its quantity. Rate of cost
31. The rate of cost of the entire work relating to a subhead, including the cost of Inclusive rate of
materials if recorded separately in the accounts. cost
32. a payment to or on behalf of a contractor which does not represent value creditable Recoverable
or payable to him for work done or supplies made by him, and has therefore to be Payment
made good to Govt. by an equivalent cash recovery or short payment of dues.
33. The account with a contractor when payment for work or supplies is made to him at Running
convenient intervals subject to final settlement of the account on the completion or Accounts
determination of his contract.
34. An advance made on the security of material brought to site of work to a contractor Secured
whose contract is for finished work Advance
35. Expenditure incurred after the acquisition of the stores, on staff employed for Storage charge
handling the store materials (in custody) and the maintenance charges of the store
godown or yards.
36. The establishment charges of the staff of the stores entrusted with the duty of
keeping initial accounts shall also be included in the storage charges. These storage
charges are added on a percentage basis to the issue rate, so as to form part of the
issue rate.
37. The term is used to describe the subdivisions into which the total cost of a work (or Sub-Heads
of its sub-works if it is a large work) is divided for purposes of financial control and
statistical convenience.
38. Charges which are levied, in addition to book value and storage charges, in respect of Supervision
stock materials sold or transferred, and are intended to cover such items of the Charges

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 expenditure incurred on the stores as do not enter their book value and are not
included in the storage charges
39. Certain heads of account, falling under the minor head “Suspense” of a major head of Suspense
expenditure, which are reserved for the temporary passage of such transactions as Accounts
must at once be taken to the account of the sanction or grant concerned, but cannot
be cleared finally decease of payment, recovery or adjustment etc.
40. The charges under suspense account are taken in enhancement of the charges under
the major head of expenditure concerned, and the receipts in reduction thereof.
41. The term denotes works of construction or maintenance relating to water courses or Takavi work
any other works, expenditure on which is treated by Govt. as an advance to cultivators
recoverable from the party or parties concerned.
42. The process whereby financial transactions which do not involve the giving or Book Transfer
receiving of cash, or of stock materials are brought to account.
43. Such transactions may either affect the books of a single accounting officer, or they
may involve operation on the books of more than one accounting officer whose
accounts are ultimately incorporated in the accounts of the Govt..
44. They may also represent corrections and amendments made in cash, stock or book
transfer transactions previously taken into account.
45. Whether a particular department or particular activities of a department shall be Govt.
regarded as a commercial department or undertaking shall be decided by
46. the lowest accounting unit under which transactions of the Govt. are recorded in the Detailed Head
accounts
PUBLIC WORKS ACCOUNTS (CLASSIFICATION OF PUBLIC WORKS)
47. For departmental purposes, Public Works Officers usually divide a detailed head into
a number of “service heads” and the latter into a number of “departmental heads”
but for purposes of account, the terms sub-head and detailed head should be used
for all divisions subordinate to a minor head.
48. In the case of Irrigation, Navigation, Embankment, Drainage and Water Storage Sub-work &
Works, the subdivisions into which the minor heads “Works” is divided for further detailed
departmental purposes are called work
49. In the case of Irrigation and other works for which separate capital and revenue Govt. in
accounts are kept, the allocation of expenditure between capital and revenue should consultation
be determined in accordance with such principles and methods as may be prescribed with the AG
by
50. If the exact final head cannot be ascertained at once, the transaction should be
classified temporarily under PW Deposit (Receipt) and Misc. PW Advance
(Expenditure)
51. In State Divisions, all transactions other than those of Railways, Posts and Telegraphs Adjusting A/c
and Defence, originating on behalf of the Central Govt. should be classified initially between
under the appropriate Central head of account but in the compiled accounts they Central and
should be collected together under the head State Govt.
52. Transactions originating in State divisions on behalf of other State Govt. and those
originating in Central Divisions on behalf of all State Govt., should be classified both
initially and finally under the heads “Interstate Suspense Account
53. In the Central Divisions such Central transactions other than those pertaining to Exchange
Railways, Posts and Telegraphs and Defence, as are adjustable in another accounting Account head
circles should be classified under the concerned
54. All other remittance transactions, whether originating in the division or in another 8782
division or department of another Govt., should be accounted for under the heads.
“Transfers between Public Works Officers” or “Public Works Remittances” under
Major Head

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
55. In the case of works done as a standing arrangement for other departments when the AG to Divisional
cost is debitable to those departments, the prescribed classification applicable to theOfficer
connected transactions will be intimated by the concerned
56. (i) Stores, if they are issued from a stock or material account or if their transfer affects
Non charging
a work for which a separate capital or revenue account is kept. between
(ii) Other services, if they affect the accounts of (a) any work for which a separate divisions under
capital or revenue account is kept, (b) a work in progress, or (c) suspense or deposits.
same Govt.
except
57. When the cost of a service undertaken on behalf of another division of the same Govt. The latter
is debitable to that division, the connected receipts and charges should be classified division.
under the head “Transfers between Public Works Officers” and passed on for
adjustment finally in the accounts of
58. Public Works revenue should be brought to account in accordance with the
classification prescribed by the Comptroller and Auditor General
59. Should Govt. deem any source of revenue not specifically mentioned in the minor other receipt
heads provided, to be of sufficient importance to justify the keeping of a separate
account of it, a detailed head for the purpose may be opened under the minor head
60. Refunds of revenue actually collected and brought to account under Civil Work Deduct-Refunds
(0059/1054) or Irrigation (0701) when made in cash, should be accounted for under of revenue
the minor head Major Head
61. Other refunds such as rents adjusted by short assessment or short realisation in a
subsequent month and repayments or receipts and recoveries on capital account,
should be taken as reduction of revenue receipts or of “Receipts and Recoveries on
Capital Account” as the case may be
62. Comprise all new construction, whether of entirely new works or of additions and Original Works
alterations to existing works also all repairs to newly purchased or previously
abandoned buildings required for bringing them into use.
63. Repairs should include primarily operations undertaken to maintain in proper Repair Work
condition buildings and woks in ordinary use
64. When a portion of an existing structure or other work, not being a road, road surface,
road bridge, causeway, embankment, ferry approach, protective or training work in
connection with a road is to be replaced or remodelled and the cost of the change
represents a genuine increase in the value of the property, the work of replacement
or remodelling, as the case may be, may be classed as “Original Works” the cost of
the portion replaced or remodelled being credited to the estimate for “Original
Works” and debited to “repairs”.
65. In all other cases the whole cost of the new works should be debited to “repairs”.
66. When an existing portion of a road, road bridge, causeway, embankment, ferry New work and
approach, protective or training work in connection with a road is to be replaced or not debited to
remodelled and the change represents a genuine increase in the value of the repair
property, the cost of replacement or remodelling, as the case may be, should be
classified as
67. ordinary repairs and maintenance including surface painting and necessary addition Classes of repair
of stone chips, gravel or sand, but not including asphaltic concrete, premix asphalt
macadam, bitumen grout, semi-grout, mixin-place, cement concrete, or cement
macadam
68. Special repair and periodical renewals
69. petty and miscellaneous items of work in any material which are classed ordinarily as
“new works” provided that the works in question do not in the opinion of the
competent authority form part of any comprehensive scheme or project covered by
a works estimate.
70. (i) Irrigations works.—This section should include water storage works also. Sections of
Irrigation,

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 (ii) Navigation, Embankment and Drainage Works.—This section should include Navigation,
receipts and charges relating to water-ways, navigable canal embankments and other embankment
agricultural and drainage works undertaken primarily not for irrigation purposes but
for the general improvement of the country or for general administrative purposes.
71. (i) Productive and (ii) Unproductive Classification of
navigation work
72. Classification of navigation works into productive and unproductive as per principles Govt. in consul-
determined by tation with AG
73. When a work is transferred from the productive to the unproductive category or vice-
versa, no adjustment need be made in the general accounts in respect of past
transactions but the necessary transfers may be made in the PROFORMA accounts of
the work.
74. Works expenditure on Irrigation Projects which is debitable to the capital account
should be classified under minor head WORK under Capital Outlay Account
75. That which is chargeable to the Revenue Account should fall under the minor head
Extension & Improvement or Maintenance & Repair of division working expense.
76. The expenditure on a work or project which is classed as Productive should be
recorded in two sections separately for capital and revenue charges.
77. For unproductive work also, the arrangement should be similar where it is desirable
or possible to maintain accounts on a quasi-commercial basis. When however, a work
of this class is too small to justify the maintenance of a separate account on such a
basis, all expenditure upon it should be treated as a revenue charge
78. Miscellaneous Expenditure’, which is expenditure upon the preliminary survey of new Unproductive
project and also the cost of famine surveys required for the preparation of famine Work
programme falls the category of
79. Sub-division of minor Heads Work, Ext. & Imp & Maintenance & Repair
(i) Head Work (ii) Main canal and branches (iii) Distributaries (iv) Drainage and
Protective works (v) Water Courses (for “Works” only) (vi) Special tools and plant (for
“Works” only) and (vii) Losses on stock
80. an eighth head “Compensation” may be opened under the minor head Maint. & Repair
81. All works expenditure relating to main canal and branches may be divided into (i)
Main line of a canal and (ii) each of its branches separately;
82. Expenditure relating to distributaries will also be grouped for the distributaries
belonging to the main line of the canal and to each of its branches separately.
83. (i) Deposit Works (ii) Local loan works and (iii) Takavi works. Non-Govt.
Works
84. Expenditure incurred on Deposits Works should be debited against the amount Deposit Work
advanced by the party concerned to the extent of that amount. Accounting
85. Any excess over that amount and also any expenditure on a deposit work which has Major Head-
been authorised by competent authority in anticipation of receipt of money, should 8443
be classified under “Miscellaneous Works Advances (MWA)” pending recovery.
86. Expenditure on a local loan work including the portion of expenditure on a joint work, 6004—Loans
which is incurred against a sanctioned loan under orders of competent authority, and Adv. from
should be classified under the Major head “ the Cent Govt.
87. The transactions relating to Takavi Works should be recorded under Sub-head “Takavi Takavi Work
Works Advances, under 8550 – Civil Advances, 103 - Other Departmental Advances”.
88. The accounts of all works of construction or of special repairs should be closed as soon
as the work is completed.
89. The following procedure is prescribed for effecting recoveries through the District and
Revenue authorities, on account of the cost of individual Takavi Works, not covered
by cash deposits received direct from the cultivators concerned:-
90. the amounts accepted by District authorities should be credited on the authority of it
to the Takavi Works Advances account by debit to the detailed head ‘Cultivators’
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 subordinate to the relevant functional major head for loans and programme minor
head under “F Loans and Advances”
91. The expenditure on works or portion or works, the cost of which is met from Central 8224
Road Fund, should be accounted for under the Major Head
92. This fund is constituted out of the proceeds of excise and import duties on motor
spirits earmarked for road development.
93. The amount sanctioned each year for transfer to this fund is credited to this head by State-80%
contra debit to the major head ‘3054. Union-20%
94. As a general rule the cost of the acquisition of stores should be debited to the final Store Account
head of account concerned or the particular work for which they are required if either
of these can be determined at once.
95. Otherwise, it should be kept in a suspense account pending clearance as the materials
are issued actually by debit to specific heads of account or work.
96. the cost of the supply of all stores required as tools and plant for the general use of Tools and Plant
the division should be debited at once to the minor head Tools & Plant/ Machinery &
Equipment under the Revenue Expenditure Head (2059)
97. Cost of special items of tools and plant which are required not for general purposes
but for a specific work should be debited to that work (capital account 4059, 5054
etc.)
98. The question whether a particular item of supply should be treated as ordinary tools Govt..
and plant or special tools and plant should be decided by
99. all road metal required for the maintenance of a road or section of a road should be
debited at once to the subhead “Repairs (Communications)” under the major head
concerned
100. When road metal is required specifically for use in the construction of a road or other
work, its cost should be debited to the estimate for such construction.
101. In the case of other materials when the purchases are made for the requirements of
works generally, the cost should be accounted for under the suspense head “Stock”.
Materials purchased specially for a work should, however, be debited to that work.
102. Charges on account of general services, like establishment and tools and plant, should
be classified in the accounts under the appropriate subhead under the minor heads
“Direction and Administration/Establishment” and “Machinery and Equipment/Tools
and Plant” as the case may be of the major head under which the division is classified
for the purpose
103. Cost of purely revenue establishment (Deputy Collectors, Ziladars, Amins, etc.) Working exp. of
employed entirely on the management of Irrigation, Navigation or Drainage Works, project/Other
and on the assessment, etc., of connected revenue shall be charged to revenue
104. If in any division of a circle of superintendence, the charge of this special
establishment cannot be allotted accurately to either of these two heads, the entire
revenue establishment of the circle should be treated as “joint revenue establishment
105. Cost of establishment employed on large irrigation surveys for new projects, to the Major Head
surveys concerned; concerned
106. Cost of establishment employed on famine relief works 2245
107. Cost of establishment employed in workshops of a quasi-commercial character, to the
workshop concerned under the major head under which its maintenance charges may
be classified.
108. Pay and allowances of such temporary establishment as is employed upon the actual the account of
execution as distinct from the general supervision, of a specific work upon the that work.
subordinate supervision of departmental labour, stores, and machinery in connection
with such a work may be debited to
109. When the charges on account of establishment and tools and plant of a division as a
whole are met out of a single major head in the first instance, such charges may be
distributed annually

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
110. Annual distribution is made by the AG over the several major heads concerned in Applies to
accordance with such methods as may be prescribed by Govt. in consultation with the special Tools &
AG. Plant
111. In the public works accounts, contributions made to local bodies, whether in cash or Revenue
in the shape of work done by the PWD on their behalf, should be debited as Expenditure
expenditure under the detailed head Contribution below relevant Major Head closely
connected with the object of assistance
112. When the Public Works Department entrusts to the agency of a District Board or other Maintenance
local body, the maintenance of Govt. buildings or roads without transferring the account and not
property to the local body, the payment made to it on this account should be debited to contribution
to
113. When works already constructed or land already purchased are transferred, free of
charge, to local bodies, no readjustment of the accounts of cost should be made
unless Govt. otherwise directs.
114. When materials are received from a supplier or through Indian Supply Mission abroad Material
or from another division or department, their value should be credited to Purchase purchase on
(i) Immediately-when required for a specific work credit
(ii) At the end of month- when received for store and payment not cleared
115. When the actual value of the materials is not known, an estimated figure should be
adopted, any difference being adjusted, as soon as known, by a plus or minus credit
to purchases, as the case may be.
116. If the amount admitted in payment exceeds the amount credited to purchases, the
difference should be debited direct to stock or to the work concerned.
117. All expenditure connected with the acquisition of stock materials and with all Stock Account
manufacture operations and the expenditure incurred on storage shall be debited to
118. Stock account should be credited the value of materials issued to works, sold,
transferred, or otherwise disposed of, and the balance of the account will represent
the book value of the materials in Stock plus the unadjusted charges, etc., connected
with manufacture plus the unadjusted expenditure on storage.
119. “Operation” charges should be shown as receipts of Stock under the subhead. Manufacturing
“Manufacture” charges representing value of stock materials issued to manufacture Account
being treated simultaneously as issues of stock under the subheads concerned.
120. All out-turn should first be brought formally on the stock account, by credit of its value
to “Manufacture”, and the simultaneous exhibition of the articles as receipts of Stock
under the subheads concerned.
121. (i) the maintenance of an existing road, or Road metal
(ii) the construction of a new road or the raising in class of an existing road, extraction
122. When land is acquired for extracting road metal and charge does not exceed ₹ 1000
or other limit prescribed, it should be debited to either original or repair work
depending upon the purpose of hiring,
123. When the charges exceed ₹ 1,000 or such other limits as prescribed and the road Land, Kilns,
metal is required for the maintenance of an existing road or roads for a series of years etc.”, of the
the total initial outlay should be debited to the subhead “ Stock Account
124. When the charges exceed ₹ 1,000 or such other limits as prescribed and the road
metal is required for the construction of a new road or the raising in class of an existing
road, a proper portion of the cost should be debited direct to the original work
concerned.
125. Any balance should be debited to the subhead “Land and Kilns, etc.”, of the Stock
Account, and this subhead should be cleared eventually by debit to “Repairs”
126. (i) Sales on credit. (ii) Exp. incurred on Deposit Works in excess of deposits received Classes of MWA
(iii) Losses, retrenchments, errors, etc. and (iv) Other items.
127. Charges on the ground of absence or insufficiency of sanction or appropriation should
not be debited to MWA except charges pertaining to Deposit Work

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
128. When stores of any kind are sold or credit, their value (plus if recoverable, the “Sales on
Supervision charges) should be debited to Miscellaneous Work Advances under the Credit”
subhead
129. (i) deficiencies in cash or stock (ii) actual losses of cash or stock (iii) errors in accounts Items under
awaiting adjustments and (iv) retrenchments and losses of other kinds recoverable loss,
from Govt. servants. retrenchment
130. (i) Debits, the classifications of which cannot be determined at once, Other item of
(ii) Recoverable debit not pertaining to the accounts of a work MWA
(iii) Recoverable outstanding pertaining to works, the accounts of which are closed.
(iv) The share of recoverable municipal taxes paid by Govt. on behalf of tenants of
Govt. buildings
131. stores obtained through High Commission/Embassies abroad is received in India, the MPSSA
stock or work shall be debited and simultaneously credit should be afforded to (8658/129)
132. The amount account for will be the cost of the quantities actually received, the payment was
amount being determined by converting the invoiced sterling value into rupees at the made abroad by
composite rate of exchange for the month in which the Embassy
133. the composite rate of exchange for the month in which the stores were dispatched Where month of
from High Commission/Embassies abroad should be adopted provisionally, subject to payment not
adjustment on receipt of the debit for payment. known
134. When the debit for the payment for stores made in High Commission/Embassies
abroad which will be calculated in rupees at the composite rate of exchange for the
month of payments, is received from the Accounts Officer the Head “MPSSA” should
be debited and the head “Public Works Remittances” credited
135. Indian charges e.g., balance of sea freight and carriage and incidental charges should
be debited direct to Stock or works concerned, unless incurred prior to the arrival of
the stores in the division, in which case they should be kept under suspense within
the accounts of the work or stock
136. On receipt of the stores, the debit should be transferred to the relevant sub-head of
work or stock, when making the adjustment of cost,
137. Direct outlay on the jobs executed in a workshop should be passed through the Workshop
suspense head. Suspense
138. On the completion of a job, all outstanding charges on it should be debited as soon as
possible, to the head concerned,
139. But in cases where this cannot be done, as in the case of expenditure incurred in
excess of the deposit received, the unadjusted amount should be transferred to the
head “Miscellaneous Works Advances” pending settlement.
140. Where capital accounts of a Workshop are kept and intended mainly for the needs of Work shop
the irrigation Branch (i.e. if the Workshop is to be regarded as being on a quasi- account in case
commercial basis), the capital expenditure should be recorded under the relevant of irrigation
Major head 4701 Capital Outlay on Major and Medium Irrigation. branch
141. Receipts representing recoveries of capital expenditure will be taken in reduction of
such expenditure
142. revenue receipts and working expenses will be booked under the minor heads opened
under the corresponding division and sub-division of the major head 0701 Major and
Medium Irrigation and 2701 Major and Medium Irrigation respectively,
143. all expenditure incurred upon it, whether of the nature of capital or of working Workshop
expenses, should be recorded under the major head 2059 Public Work account in case
144. Recoveries of capital expenditure will be taken in reduction of such expenditure of Civil Branch
(minus debit 2059)
145. Revenue receipts will be booked under the minor head “800 – Other Receipts below
the major head ‘0059 Public Works’ divided so as to meet the requirements of the
proforma accounts of the shop.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
146. All expenditure should be booked under the major head ‘2701’ Major and Medium Workshop
Irrigation or ‘2059’ Public Works as the case may be, account where
147. All receipts, whether “recoveries of expenditure” or “revenue receipts”, under the no capital a/c is
minor head “800 – Other Receipts” of the corresponding revenue Major Head ‘0701’ maintained
Major and Medium Irrigation or ‘0059’ Public Works.
148. All capital charges on buildings, plant and machinery and stock materials and all
charges incurred on their maintenance and on the upkeep of the necessary general
establishment, should be accounted for as ordinary Public Works transactions under
the major head concerned
149. All recoveries of expenditure appearing in the accounts of Public Works Offices should Recoveries of
be treated as revenue receipts and not as minus expenditure Expenditure
150. Recoveries in respect of over-payments made during the current year, however
should be adjusted ordinarily by deduction from the current year’s charge under the
detailed head previously over-charged.
151. Receipts and recoveries on capital accounts in so far as they represent recoveries of
expenditure previously debited to a capital major head, should be taken in reduction
of expenditure under the major head concerned.
152. They should be treated as receipts in the first instance and classified as “Receipts and
recoveries on Capital Account”, the necessary transfer at the end of the month
153. Recoveries under stock and other suspense accounts and recoveries of expenditure
upon works in progress should be treated as reduction of gross expenditure.
154. In respect of establishment & Tools and plant charges relatable to works done for
other Govt.s, Local Funds, Private parties etc., the recovery should be made on
percentage basis and credited as revenue under Major Head 0059
155. If the works are carried out as a standing arrangement the recoveries may be adjusted
as reduction of expenditure
156. For revenue accounts the pro-rata shares calculated at the end of the year should be
treated as reduction as reduction of expenditure under Minor Head Direction &
Administration and Tools and Plant respectively of the major head concerned to
which the total charges were debited in the first instance.
157. For works debitable to capital heads of accounts, the establishment charges should
be allocated monthly in the Divisions on a percentage basis in proportion to the works
outlay recorded under the capital major heads and adjusted as reduction of
expenditure
158. The percentage for the recovery of these charges will be fixed by the Govt. in such a
manner as to remain current at least for the three years.
159. When leave and pension contribution are levied separately, recoveries representing
leave contribution should be credited to the receipt head corresponding to the
functional head of the establishment
160. where there is no corresponding receipt head to the minor head “Other receipts”
under the residuary receipt major head in respective sections
161. Recoveries representing pension contributions to the major head “0071.
162. Where the rates for leave and pension contributions are combined the recoveries
should be treated as revenue and the whole amount credited under the minor head
‘Subscriptions and contributions’ below the major head “0071”.
163. Recoveries on account of leave contribution and pension in Irrigation Department
should be credited the irrigation major head concerned as revenue receipt or
recoveries of expenditure as the case may be.
164. When the actual recoveries of outlay on water course other than Takavi works are to
be set off against the outlay (i) Lump-sum recovery in one or more year-receipt on
capital accounts (ii) an enhancement of revenue-Revenue receipt

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
165. Recoveries of outlay on water-courses, where such recoveries have to be set off
against the outlay, may at the discretion of Govt. be taken in reduction of expenditure
under the sub-head “Water-courses”.
166. The recoveries of expenditure which are finally creditable as revenue receipts should Other Receipt
be recorded under the minor head
167. The recoveries of expenditure which are adjustable education of expenditure under R&R on capital
the Capital major head should appear under the minor head account
168. Receipts on account of sale proceeds of land, building, special tools and plant and Govt.
other assets will be taken in reduction of expenditure under the appropriate sub-head
subordinate to the capital major head concerned at the discretion of
169. Recoveries on account of cost of audit and accounts in respect of works carried out Revenue
on behalf of non-Govt. bodies or individuals are adjusted as revenue receipts. Receipts.
170. (i) cash deposits of subordinates as security (ii) cash deposits of contractors as security PW Deposit
(iii) deposits for works (other than Takavi work) to be done (iv) sums due to transactions
contractors on closed accounts and (v) miscellaneous deposits.
171. Deposit for takavi work should be classified under Major Head Civil Advance 8550
172. all items of receipt, the classification of which cannot be determined at once, or which Misc. Deposit
represent errors in accounting awaiting adjustment shall be accounted for under
173. Percentage deductions for security deposit made from contractor’s bills should be
credited to the head “Public Works Deposits—Cash deposits of contractors”.
174. when the security is exacted by withholding from payment the required percentage
of the value of work actually measured and passed, the amount so withheld may
appear in the suspense
175. The expense attendant upon the necessary examination of the soil for the foundation
of works ordered by competent authority should be treated as outlay on works and
not as contingent charge.
176. Municipal or other rates and taxes on non-residential buildings when debitable to 2059
public works shall be treated as expenditure on maintenance & repair and debited to
177. Taxes on residential building should be charges to the maintenance estimates of the 2216/2059
buildings under the major head ‘2216 Housing’ or ‘2059. Public Works’ as Govt. may
decide.
178. Taxes on non-residential buildings occupied by Departments other than the Defence
Department, if paid by a department nominated by Govt. in this behalf and not passed
on to the occupying departments shall be debited to “2070.
179. Every payment made to a member of the work charged establishment on account of
wages or recoupment of actual travelling expenses should be debited to account of
work concerned.
180. There are certain transactions recorded in the initial cash and stock accounts, which Transactions
involve no operation on a revenue, expenditure, or any other prescribed heads of the involve no
accounts classification, as every such entry is counterbalanced either at once or after operation of
an interval, by a similar entry of the reverse character. revenue,
181. Cash from treasury/bank- A cheque drawn to replenish the cash chest should be expenditure or
debited to this head in the cash book, and per contra the amount of the cheque should other head
be entered at once, as cash received, under the same head
182. Treasuries within division.—Remittances of cash and stock by one accounting officer
of the division to another should be debited or credited to this head when remittance
is actually made or received.

183. An account of their cash transactions should be maintained in the Cash Book by all PWA-1
Govt. servants authorised, as a regular arrangement
184. Govt. may authorise Divisional Officers not to pass through the Cash Book earnest
money received from, and returned to contractors on the same day the tenders are
opened,
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
185. the contractors concerned are required to give a stamped receipt for the money in
the register of tenders maintained in the divisional office and that the register is to
that effect treated as a subsidiary cash book
186. The Cash Book should be balanced on the date prescribed for closing the cash
accounts of the month, but when the transactions are numerous, a weekly or daily
balance is recommended,
187. The details of the actual cash found at the monthly counting should be recorded in PWA-2
K.P.W. Form 5 and a certificate of the reconciliation of the book balance with the
actual one, recorded below the closing entries of the month.
188. Cash found surplus in chest shall be accounted for under Public Work Deposit (8443)
and cash found deficit under MWA (2059)
189. An entry once made in the Cash Book should in no circumstances be erased. If a Correction in
mistake has been made and it is discovered before the copy of the Cash Book has cash book
been submitted to the Divisional Offices, the mistake should be corrected by drawing
the pen through the incorrect entry and inserting the correct one in RED INK between
the lines.
190. The disbursing officer should initial every such correction and invariably date his
initials.
191. When the mistake is discovered too late for correction in this way, an intimation of
the necessary correction should be accompanied by a transfer entry with a suitable
remark in red ink
192. An account of imprest cash should be kept in duplicate by imprest holder in PWA 2 Imprest Account
193. The counterfoil should be retained by the imprest holder and the original supported
by the necessary vouchers should be forwarded to the officer from whom the imprest
is held, whenever the imprest holder finds it necessary to have the account recouped,
or when it is proposed to increase or decrease the amount of the imprest or to close
the account altogether.
194. The account should, in any case, be rendered to the officer from whom the imprest is
held before it is closed for the month on the date fixed for the purpose.
195. If any item in an imprest account appears to the recouping officer to be open to
objection, that item may be entered in his Cash Book as “Item awaiting adjustment in
the Imprest account of…………..” under “MWA
196. The imprest should always be recouped and item of expenditure objected to will be
classified under “Losses, retrenchments, errors etc.,” under ‘MWA.
197. When a disbursing officer makes a remittance to a subordinate officer to enable him Temporary
to make a number of specific petty payments on a muster roll or other voucher which Advance
has already been passed for payment
198. After the expiry of the month as possible, the Divisional Office should effect a monthly
settlement with all treasuries in respect of the transactions of the ENTIRE DIVISION
199. Sub-divisional cash books are closed on various dates before the last date of the
calendar month i.e. 25th or earlier date (between 19th and 25th as fixed by the AG)

200. (A) Store debited to final Head-(i) Machinery & Equipment (ii) Road Metal (iii) Category of
Materials debited to works Store
(B) Stores debited to suspense-Stock
201. The initial records of stores received and issued are kept in the Goods Received Sheet
form and the Stores Indent form. The receipt, issue and balance of stores debited to
‘stock’ are consolidated in the Bin card.
202. The receipt of stores obtained for specific works is recorded in the MB
203. The records and returns of all stores kept or rendered by SUB-DIVISIONS should take
account of quantities only, the value accounts being maintained in the DIVISIONAL
OFFICE.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
204. (i) Small Stores (ii) Building Materials (iii) Timber (iv) Metals (v) Fuel (vi) Painter’s Sub-heads of
Stores (vii) House Fittings (viii) Miscellaneous Stores (ix) Land, Kilns, etc., (x) stock
Manufacture and (xi) Storage
205. Sub-heads under stock that may be replaced locally by other suitable sub-heads, if (i) to (viii)
required
206. All transactions of receipts and issues in in quantities only should be recorded in PWA 4
“Registers of Stock Receipts—Issues”,
207. These registers need not be kept in cases where a detailed account of any particular
kind of stores is maintained in the form of card or leaf ledgers
208. Issues of petty Stores by a sectional officer direct to works under his supervision may
be shown in the accounts collectively once a month when the accounts of the month
are closed.
209. The receipt and issues transactions of the entire Sub-division, as entered in K.P.W.
Form 7 should be abstracted monthly, by the Sub-divisional Office in a single “Abstract
of stock Receipts” (PWA 5) and in a single “Abstract of Stock Issues” (PWA 6),
210. (i) the values of quantities shown as received and issued, (ii) the calculation of the Division action
storage charges on the issues and (iii) cash or adjustment charges on account of of abstract
manufacture operation, storage and incidental charges such as those for carriage,
loading and unloading of stock materials.
211. The general account of receipts, issues and balances of the suspense head “Stock” for PWA 17
the entire division should be kept in the Suspense Register
212. Sub-divisional and Divisional Offices will keep subsidiary Registers of Stock in such
form as the Govt. may determine in consultation with the AG,
213. Any errors discovered in the Registers of Receipts and Issues or in the monthly Sub-divisional
abstracts before the accounts for the month are closed, should be set right by Officer.
214. Mistakes noticed subsequently should not be corrected except in accordance with a
formal transfer entry or under instructions received from the Divisional Office.
215. The value of stores found surplus should be credited at once as a revenue receipt or
a receipt on capital account, as the case may be.
216. The value of deficit should however, not be debited to final heads but kept under
“Miscellaneous Works Advances” pending recovery or adjustment
217. No correction should be made in the accounts in respect of stores declared to be in
excess of requirements. Such stores should continue to be borne on the Stock account
until transferred elsewhere or otherwise disposed of in the ordinary course.
218. If the cost or depreciated value of any Special Tools and Plant obtained for, or used
on, a project is required to be distributed over different units of the project, the forms
of subsidiary accounts to be kept to facilitate that distribution may be settled by Govt.
after consultation with the AG.

219. (i) to correct an error of classification in the original account Need of a

(ii) to adjust an item outstanding under a suspense account or under a debt, deposit transfer entry
or remittance head;
(iii) In order to bring to account certain classes of transactions which do not pass
through the cash or stock account
(iv) In order to respond to a remittance transaction advised by the Accounts Officer,
(v) to effect periodical adjustments such as interest on GPF, Pro-rata distribution of
establishment charges etc.
(vi) for credit to Revenue heads on account of revenue not recovered in cash
220. For every transfer either a Transfer Entry Order should be prepared in PWA 7 or an
order recorded on another document, e.g., Survey Report and Final Bill of a
contractor’s closed account placed under “Public Works Deposits”,
221. A single transfer entry may cover a number of adjustments and corrections, provided
that all the necessary particulars are set forth in respect of each.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
222. In cases of corrections involving a reduction in the charges against the estimates of a
work, not only should full particulars of the vouchers and accounts in which the
erroneous charges originally appeared be specified, but also the circumstances in
which the charges were allocated wrongly under the estimate for the work should be
set forth clearly
223. Though no transfer should be made from one sub-head to another in the accounts of
a work except on the authority of a formal Transfer Entry Order approved by the DO,
the order should not be entered in the Transfer Entry Book but filed with the Works
Abstract for month in which the transfer is affected.

224. (i) supervision charges on sales of stock on credit; Revenue credit

(ii) sale proceeds of such articles of tools and plant as are creditable under the rules without
of Govt. to the minor head “Recoveries of expenditure” by debit to “Miscellaneous realisation
Works Advances”.
225. Revenue receipts Irrigation, Navigation, etc., works realised in the Civil Department
and paid direct into treasuries under the rules of Govt. will be brought to account to
the credit of the revenue heads concerned direct on the books of the AG without
being passed on the Divisional Officer for adjustment
226. In Register of Revenue a column should be opened for each minor head of revenue
(and detailed heads subordinate to it, as required) other than “Deduct-Refunds” for
which a single deduction is made from the total revenue of month.
227. The details of the amounts which make up the figure to be deducted should be
recorded in a separate Register of Refunds of Revenue, which may also be in the same
form as that of the Register of Revenue.
228. If in respect of rent receipts of the buildings, lands and special services subsidiary Register of rent
accounts are kept in a separate Register of Rents prescribed by Govt., entries should
not be made in detail in any other of the register of revenue.
229. The monthly totals only (excluding the amounts realised by Treasury Officers under
the same accounts circle) for each class of the rents for which separate detailed heads
have been opened under the minor head “Rents” should be transferred from the
Register of Rents to those Registers.
230. The amounts of rent bill realised by deduction from pay bills cashed at treasuries
subordinate to the same AG as the Divisional Officer will be credited by the AG direct
in his books to the revenue heads concerned.

231. Expenditure on the construction or maintenance of a work may be divided broadly

into two main classes, viz., (i) Cash and (ii) Stock charges.
232. Separate accounts have to be maintained in Sub-divisional and Divisional Offices for Work Accounts
recording (1) the cost of individual works, and (2) the transactions of individual
contractors.
233. The cost of special establishment employed on the acquisition of land taken up for a
work when debitable to the PWD should be treated as a part of works expenditure.
234. (i) the full name of the work as given in the estimate. Initial Account
(ii) the name of the component part (or “sub-head”) of it, if separate accounts are of Works
kept for the several component parts, and
(iii) any charges which are of the nature of recoverable payments and the names of
the contractors or others from whom recoverable.
235. (i) labourers and members of work charges establishment of their wages Cash Charges
(ii) Contractor and others for work done or other services rendered. include
236. An account of labourers employed daily on each work, the amount of wages due to Muster Roll(MR)
each and the amount paid and left undisbursed during the month,
237. should be kept in a muster roll in such form and according to such methods as may
be prescribed by Govt. in consultation with the AG.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
238. In exceptional and urgent cases, such as urgent silt clearance of canals or the closing No need of
of breaches, where labourers are employed casually for short periods. Muster Roll
239. In the case of petty works and repairs done on petty works requisition when the
entries of daily labour are few and can be endorsed on the form of requisition itself.
240. A detailed account of actual measurement in quantities of work done otherwise than Measurement
by daily labour or on lump sum contracts, and all supplies for specific works should be Book (MB)
kept
241. Should be kept in a muster roll in such form and according to such methods as may
be prescribed by Govt. in consultation with the AG.
242. Where standard measurement books of buildings are maintained in order to facilitate No need of MB
the preparation of estimates for periodical repairs and are utilized for the purpose of
preparing contractors’ bills for such repairs.
243. All payments to members of work-charged establishment and to contractors and WCE and
suppliers will be detailed in bills and vouchers drawn up on form determined by Govt. contractor Bill
in consultation with the AG.
244. An account of items remaining unpaid on the passed bill of members of work-charged
establishment at the close of the month should be kept in a Register of Unpaid Wages
245. A separate running account should be maintained in respect of each contract.
246. In exceptional cases where more than one working estimate is covered by a single
contract, the contract agreement need not be split up but the estimates may be
consolidated to facilitate the maintenance of proper accounts in respect of that
contract.
247. If this procedure cannot be observed, some special account procedure may be
devised on the merits of each case in consultation with the AG concerned.
248. No consolidation of estimates or special accounts procedure is necessary where No
separate estimates covered by the single contract relate to different accounts heads consolidation of
249. OR where separate estimates whether relating to different accounts heads or not, estimate is
are covered by a single running rate contract required
250. Where separate agreements are drawn on the basis of such rate contract with other
details varied to suit the requirements of each job.
251. (i) Issues to contractors-Issues of materials to contractors with whom agreements in Classes of issue
respect of completed items of works have been executed. of material
(2) Issues direct to work-Issues of materials when work is done departmentally or by
contractors whose agreements are for labour only.
252. The cost recoverable from contractor on account of issue of material to him should
be debited at once to his personal account by charge to the suspense head
“Contractors-Other transactions”
253. Sources from which material is issued to contractor will be credited and his personal
account i.e. Contractor Ledger Contractors-Other transactions” will be debited.
254. (i) Stock (including manufacture)-STOCK (ii) Transfer from another work-WORK Particular name
concerned (iii) Transfer from another division, department, Supplier including abroad- of the source
PURCHASE (MPSSA) (iv) Indian Charges- HEAD concerned.
255. If the amount thus credited differs from the charge made to the contractor’s account, Cost of material
the excess of the former over the latter, should be treated as additional final outlay chargeable is
(plus or minus as the case may be) on the work, and a separate sub-head, entitled less than actual
“Additional charges for materials issued to contractors”,
256. Issues from stock (including manufacture) should be accounted for through the stock
returns. For other issues, a transfer entry should be prepared by the Sub-divisional
Officer as soon as each transaction takes place.
257. The provisions of this Article shall not apply to tools and plant which are borne on the
tools and plant lists of the Division and are, under the rules of Govt., lent temporarily
to contractors for use on Govt. works.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
258. When materials are issued direct to a work their cost should either be treated as a Issue direct to
final charge or debited to the suspense head “Materials” in the accounts of the work, work
259. The full value credited to the head concerned and debited to the work should also be
entered in the Materials-at-site Account when the works accounts are maintained by
sub-heads.
260. Adjustment of all stock issued direct to work from stock and manufacturing shall be Monthly basis
made on via stock A/c
261. Adjustment of all stock issued direct to work by transfer from other works, another Transfer entry
divisions, supplier etc. as soon as material is received through order
262. The value of any surplus materials at site of works are transferred to works in progress
or brought on to stock account, debit the work to which transferred or stock as the
case may be and credit to work from which transferred.
263. A list of surplus materials not disposed of should be maintained in the Sub-divisional Superintendent
and Divisional Offices with a view to keep a watch over the disposal of such materials, Engineer
unless this is considered unnecessary by the
264. The cost of carriage of stock materials to site of work, and of all carriage charges in Carriage &
connection with the movement, from place to place, of other materials issued to or Incidental
provided specially for a work should be debited direct to the account of the work, charges
265. (i) To the promised place of delivery to contractor- borne by the department under
the head Additional charge for materials issued to contractors or “Final charges”
(ii) Beyond the promised place of delivery- Contractor Other Transaction of Contractor
Ledger
266. When surplus materials are returned from a work to stock, the cost of carriage should
be borne by the work but if they are transferred to another work, the charge may be
debited to either work as may be equitable.

267. An account of all the transactions relating to a work during a month, whether in Works Abstract
respect of cash, stock or other charges (PWA 10)
268. In the case of petty works the accounts of which do not involve suspense transactions No need of a
(e.g. advance payments, secured advances or other transactions of contractors) and works abstract
for which the estimate, account and completion reports are prepared on a single form
prescribed by Govt.,
269. Percentage charges on account of establishment, tools and plant and account and Items not
audit, levied on works expenditure, should not be shown in works abstracts and included in
register of works, though they are included eventually in the cost of works. works abstract
270. Ordinarily, there should be one works abstract for each working estimate. If, however,
the estimate is for a large work which is divided into several sub-works, a separate
works abstract may be prepared for each sub-work provided that no part of an
estimate should be separated from the rest
271. Various sub-heads into which the final charges of a work should be distributed will be Abstract of the
determined by the classification sanctioned in the estimate.
272. Miscellaneous charges of a general nature which do not pertain to any sub-head in
particular, should be treated as separated sub-heads e.g. work-charged
establishment, contingencies, etc.
273. If any part of a work is pulled down and rebuilt to any serious extent, the extra charges
for construction should be debited ordinarily to the sub-head concerned unless they
are recoverable from the contractor under the terms of his agreement.
274. if the amount involved be so large as to affect seriously the cost or rate of the sub-
head it should be debited to the sub-head “Contingencies” or with the sanction of
competent authority, to a new sub-head
275. If any receipts or recoveries are credited under the rules to the account of a work of
which accounts are kept by sub-head, a special sub-head should be opened in the
works abstract for the reception of all such credits.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
276. In the case of works carried out on lump sum contracts the expenditure need not be
booked by sub-heads if all the charges represent nothing but payments on a lump
sum contract.
277. (1) Final charges- Final Sub-head, Additional charges for issue of material Heads under
(2) Suspense Charges-(i) Material (ii) Contractor-Advance Payment (iii) Contractor- Works Abstract
Secured Payment (iv) Contractor-Other Transactions and (v) Labour
278. For the record of the cost of materials issued direct to work. Material
279. To record payment made a contractor for work done by him but not measured and Contractor-Adv.
connected recovery Payment
280. In lump sum contract, payments for measured up additions and alterations, as well as
for the work covered by the lump sum where detailed measurements are necessary
281. To record advance made on the security of material brought to site of work to a Contractor-
contractor whose contract is for finished work Secured Adv
282. To record the cost of material issued to contractor whose contract is for finished item Contractor-
of work and other charges and payment other Trans.
283. For the record of unpaid wages of labourers and of their subsequent payment. Labourer
284. If a running account bill or muster roll is only partly paid, the total amount due thereon
as value of work done or supplies made should be brought to account in the works
abstracts as final charges or as expenditure on the sub-heads concerned, and the
amount remaining unpaid should be shown as a minus entry in the appropriate
suspense column— “Contractors—Other Transactions” or “Labourers”.
285. the account of the work as passed on the bill should be incorporated in the works more than one
abstract on the authority of the bill and the balance due to him should be removed month after his
from the accounts of the work by credit to the head “Public Works Deposits (8443) if final bill has
the contractor delays in receiving final payment for been passed
286. If the final account of a contractor shows that he has already been overpaid or that
the account closes with a balance due by him and if an immediate recovery is not
practicable the balance should be removed from the works abstract by debit to the
head “Miscellaneous Work Advances”.
287. If any wages of labourers remain unpaid after the completion of a work, the accounts Three months
of the work may be kept open for a one month which may be extended by the DO for
288. Thereafter the accounts of the work should be closed, the balance under the suspense
head “Labourers” being left unadjusted.
289. If unpaid wages of labourers are claimed and paid subsequent to the closing of the
accounts of a work, the accounts of the work may be re-opened at the discretion of
the Divisional Officer.
290. The works abstract should be prepared in the Sub-divisional Office in the first
instance.
291. (i) day by day from the cash book and the connected bills of contractors and suppliers Posting in Work
(ii) cash refunds and re-adjustment of final charges being posted as (-) entries. abstract
(iii) stock and adjustment transactions at the end of the month
292. The works abstract should then be forwarded in original to the Divisional Office,
where necessary completing entries will be made in respect of the direct charges and
adjustments made by the Divisional Officer.
293. Postings made in the Sub-divisional Office should be in black ink and all postings and
corrections made in the Divisional Office in red ink.
294. Office copies of works abstracts need not be kept, as the originals are returned by the
Divisional Office after completion, however, up-date total shall be recorded in
advance in the return of the following month.

295. A permanent and collective record of the expenditure incurred on all works carried Divisional Office
out during a year should be maintained in Registers of Works in the office of
296. These registers should be posted monthly from works abstracts
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
297. the transactions relating to each work abstract should be posted separately and an
abstract for the entire work should be prepared on a separate folio or set of folios to
compare the cost of the work and its sub-works with the provision in the estimate.
298. Before the date of submission of the monthly accounts to the AG, the posting of the
registers of works should be completed and the registers should then be laid before
the Divisional Officer for review.
299. The monthly account of each work on which there has been expenditure during the
month should be initialled (and dated) by the Divisional Officer
300. If the transactions of a division are very large, the Divisional Officer may allow an extra
period of a few days for the completion of the registers of works, but the submission
of the monthly accounts to the AG and the completion of the works abstracts should
not be delayed on this account.
301. If there is necessarily any delay in closing the accounts after completion of a work,
further charges are shall not be incurred without the permission of the Divisional
Officer.
302. The sub-head “Additional Charges for materials issued to contractors” should receive
the special attention of the DO who should, if necessary, investigate large closing
balances under this head before he permits the accounts of the work to be closed.
303. The accounts of annual maintenance estimates should be closed in the month fixed
by Govt. concerned.
304. If, in any exceptional case any work remains to and done be it is proposed to carry it
on to completion, the expenditure incurred in the next working year should be treated
as expenditure against the annual maintenance estimate for that year
305. The suspense accounts of the work should be closed in the last month of the working
year, by transferring the balances of all those accounts to the general suspense
accounts “Public Works Deposits” or “MWA” as the case may be, which should be
relieved in the following month by retransferring the balances to the suspense
accounts concerned in the accounts of the maintenance estimate for the next working
year.
306. All unsettled liabilities and assets should then be treated as those pertaining to the
next working years’ estimate
307. When the work is completed and the accounts of it have been settled and written up Signed by the
a double red ink line should be ruled below the final entries and a note made in red DO
ink “Works completed in 20…”
308. A work should not be reported as completed in the Divisional Accounts unless this
authority has been placed on record.
309. If the total expenditure on the work is in excess of the sanctioned estimate and the completion
excess is passed by the Divisional Officer under his powers the words “Excess passed note
by me” should be added to the
310. If the excess is such that the Divisional Officer cannot pass it within his powers the
completion note should be submitted to the higher competent authority
311. For rectification of an error after closure of account, the account may be re-opened more than ten
unless the amount involved is rupees
312. Where amount of error is not more than ₹ 10, account should not be opened and
instead a note of the error or omission should be made in the relevant documents
concerned.

313. The accounts relating to contractors should be kept in the Contractors’ Ledger in PWA 14
314. (i) f the work or supply entrusted to him is not important and no payment is made to No opening of a
him except on a First and Final Bill on completion of the work Contractor
(ii) if under the rules of Govt., a consolidated monthly account for “on account Ledger
payments” to petty contractors employed on the same work or section of a work is

17
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 prepared in preference to a separate bill for each payee, a single ledger head “Petty
Contractors”,
315. If, any materials are issued to the contractor or any payments are made on his behalf,
a ledger account should be opened.
316. The value of work done or supplies made by a contractor should not be credited to Entries of
his account until his bill has been passed and payment made thereon. contractor
317. Debit entries in the ledger should be made only on the basis of transactions recorded Ledger
in the accounts and the postings should be made from the supporting cash, stock or
adjustment vouchers;
318. Liabilities not yet liquidated should be excluded altogether.
319. The value of materials issued to a contractor should be debited to his account on the
authority of his acknowledgement;
320. Security deposit of contractor shall not be recorded in Contractor Ledger
321. When a deduction made from a contractor’s bill for one work is creditable to the
account of another work, two distinct sets of entries should be made, one for the
payment and the other for the recovery
322. If there are several contracts in connection with a work or account, the transactions
relating to each should be distinguished, preferably by quotation of the number and
date of agreement or work order.
323. The ledger accounts should be closed and balanced monthly.
324. Closing balance of each personal should show each or the three suspense accounts,
(i) Advance payment, (ii) Secured advances and (iii) Other transactions with a
quotation from the last Running Account Bill
325. Responsible for the correctness of the contractors’ ledger and for securing agreement Divisional
month by month between the balances detailed in the works Abstracts and the Accountant
corresponding balances of the accounts in the ledger.
326. A contractor requiring a copy of his running account bill or an extract from his account
in the contractors’ ledger should be furnished with the same.
327. Contractor should be encouraged to look into his account in the ledger and sign it in
token of his acceptance of it.
328. Transactions connected with each manufacture activity should be recorded under a suspense head
distinct sub-head “Manufacture” located in STOCK
329. The accounts of road metal digging are not treated at manufacture accounts
330. A manufacture account is essentially a suspense account, as the cost of the operations
cannot be cleared finally until they are closed.
331. Manufacturing account is categorised into section (i) Operation and (ii) Out-turn
332. (i) the value of raw materials issued from stock or obtained otherwise, Debit to
(ii) the cost of the labour employed and Operation
(iii) other incidental charges connected with the operations. Accounts
(iv) Capital charges, such as the cost of land, kilns, special plant, etc., incurred in
connection with a manufacture operation which does not extend beyond a single
season
333. Capital charges, such as the cost of land, kilns, special plant, etc., incurred in
connection with a manufacture operation which does not extend beyond a single
season, should be debited wholly to the account of the manufacture. To this account
should also be debited the cost of repairs and renewals of the kilns, etc.
334. All these charges should be recovered in suitable instalments by debit to the
“Operation” accounts of the several seasons, the number of instalments and the
amount for each season being determined in each case under the orders of
competent authority.
335. When the land, kilns, plant, etc., acquired for departmental manufacture operations
are leased to a contractor of the division or other person, the rent recovered should
be credited to this special account and not to Revenue.
18
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
336. If the manufacture is undertaken on behalf of other divisions, departments or Govt.s
or local bodies or individuals, a charge should be made on account of establishment
and tools and plant, if leviable
337. Except as mentioned above, no charge should be made on account of general
establishment and ordinary tools and plant charges or on account of interest on the
capital cost of land, kilns, plant, etc., unless Govt. directs otherwise.
338. the value of the manufactured articles and of the surplus materials sold or otherwise Out-turn
disposed of shall be credited to Account
339. If the rate, at which any article of out-turn manufactured for a particular work is
valued, turns out to be different from the issue rate of a similar article already in stock,
the value of the two articles may be averaged for the purpose of stock accounts unless
Govt. decides otherwise,
340. A detailed Out-turn Account for each month should be prepared in Out-turn PWA 15
Statement of Manufacture, and should be attached to the works abstract for the
operation.
341. The account should show month by month the quantities and values of each class of
articles manufactured and also the corresponding figures shows in the estimate (if
any).
342. The record of monthly transactions connected with manufacture operations should PWA 16
be kept in the Divisional Office in a separate Register of Manufacture, instead of the
ordinary forms of the registers of works
343. If the operations are seasonal, the accounts on each season should be kept separate Closing of
and closed as soon as the operations are closed. manufacturing
344. In cases in which operations are continuous, the accounts should be closed account
periodically or at least once a year
345. If the orders issued have the effect of enhancing or lowering the value of the out-turn
already brought to account the adjustment should be made by a suitable entry
(without any fresh quantities) in the Out-turn Statement,
346. The difference between the “operation” and “out-turn” should be adjusted under the
orders of competent authority and the loss or gain, as the case may be, should be
taken to the expenditure or revenue head concerned by a regular transfer entry which
will affect the “operation” account only.

347. A detailed account of the transactions relating to the suspense heads “Stock” and Suspense
MWA should be maintained in the Divisional Office in a register called the Register
348. The account of the debt head “Public Works Deposits” should also be kept in the same
form.
349. In respect of items relating to deposit works including item falling under the class Details in
“Expenditure incurred on deposit works in excess of deposits Received a single entry Schedule of
for the monthly transactions relating to all such works should be made both in the Deposit
Deposit and the Suspense (MWA) Registers, as the case may be.
350. As the detailed accounts for individual transactions relating to stock are separately,
the monthly totals only in respect of each sub-head of stock should be posted in the
Suspense Register,
351. Transfers within the division should be accounted for against a single item “Deduct
Transfers within Division” before the total for the entire head “Stock” is struck.
352. The detailed accounts of the transactions under this head will be kept in a suitable Workshop
form to be settled by Govt. in consultation with the AG Suspense
353. The recorded expenditure on a job should be removed from the suspense head by a
credit to the account of the job only when, and to the extent that, an adjustment is
effected against the deposit received or against the service or other head concerned;
354. When any charges are transferred from one job or operation to another, the transfer
should be made by plus and minus debit entries.

19
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
355. The outstanding items in the Deposits Register and the Suspense Account “Purchases” In the account
under ‘Stock’ which under the rules of Govt. are to be treated as lapsed, should be of March
credited to the Revenue head concerned.
356. Items or balances under the suspense head MWA which becomes irrecoverable,
should not be removed from the accounts until a competent authority has sanctioned
its writing off

357. Larger workshops, with special plant or machinery should be treated as separate sub-
divisions, or divisions, for account purposes
358. Forms to be used and the procedure to be observed will be settled by Govt. in respect
of each workshop in consultation with the AG concerned.
359. All direct charges pertaining exclusively to any job should be debited at once to the
accounts of that job under the suspense head “Workshop Suspense”
360. Charges of general nature should be treated, in the first instance, as general charges
under one or more suitable headings and apportioned subsequently amongst the job
concerned in accordance with a definite procedure.
361. All liabilities should be taken into account, even though undisbursed, so that the
general charges may be allocated correctly month by month,
362. (i) cost of labour actually employed (ii) cost of materials used (iii) cost of castings (iv) Items of direct
share of the running charges of machines (v) a share of running charges of forges (vi) charges of
a share of the general charges actually incurred and (vii) incidental charges such as workshop
packing and carriage. suspense
363. Generally, the cost of operations should be cleared or adjusted in transfer month by
month
364. (i) When the total cost during the year is not larger than ₹ 500 or any other limit that Accounts to be
may be fixed by Govt. in consultation with the AG. cleared once a
(ii) When the monthly settlement of account is inconvenient to indenting division or year in March or
department. earlier
365. When the estimated cost of a job is recovered in advance, it should be kept in deposit
in the first instance from where the expenditure incurred will be adjusted
366. (i) Supervision charges (ii) Interest on the capital cost of buildings, plant and Items of charges
machinery (iii) Maintenance charges of buildings, plant and machinery (iv) on percentage
Depreciation of buildings, plant and machinery (v) Establishment charges (vi) Profit
367. The indirect charges should be brought to account whenever the settlement of the
account of direct charges is effected
368. Pro forma accounts of each workshop will be prepared annually in such form and in
such detail as may be prescribed by Govt. in consultation with the AG

369. When a transaction has to be cleared by a book transfer the transfers should be
effected by debiting or crediting it to the remittance or other head concerned in the
cash or stock accounts if it appears therein, or by an entry in the Transfer Entry Book;
370. When a transaction originates in a PWD, the necessary transfer should appear
ordinarily in the accounts of the division for the month in which the transaction
occurred
371. In case of workshop accounts, transfer should appear as and when settlement is
affected.
372. In respect of work done in a division for other departments or Govt.s, the intimation
of transfer will be given after audit by the AG to the Accounts Officer concerned, or
to the department for which the work is done, if in the same State.
373. he provision regarding audit before intimation of transfer may be relaxed in the case
of any item appearing in the accounts for March and requiring adjustment with
another Govt.,

20
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
374. As cash settlement of interdivisional transactions has been introduced the claims
should be settled by the divisions amongst themselves without the intervention of AG
375. If it is noticed by the AG that an excess payment has been made the responding CSSA
division will claim the amount of excess from the originating division by operating on (8658/107)
the suspense head ‘Cash Settlement Suspense Account’.
376. Transactions originating in another Department or Govt. should as a rule be adjusted
in Divisional Accounts only on receipt of intimation of the debit or credit through the
AG
377. (i) recoveries of rent realised on behalf of the PWD by Disbursing or Accounts Officers Exception to
of other accounts circles, provided these entries are supported by certificates above
(ii) Transactions for which advices and acceptances of transfers are exchanged direct
between one division and another
(iii) Any other transactions authorised by the AG
378. The Divisional Officer should examine every transfer advised to his Division for
adjustment, but should not reject a transfer because the voucher is not in order, or is
wanting.
379. A transfer advice should be partly accepted or partly rejected, it may be rejected
altogether if it does not pertain clearly to the division or it should be accepted
provisionally in full and the dispute
380. Railway debits for amounts due on warrants and credit notes passed on by the AG for
adjustment in the Divisional Accounts, should be accepted in full, subject only to
readjustment later on, of under or over charges.
381. In cases in which advices and acceptance of transfer are exchanged direct by
Divisional Officers of two accounts circles those officers shall be jointly responsible
for clearing remittance transactions
382. If an item cannot be accepted, and the intimation of its rejection issues too late to
reach the originating officer with in the month in which he has brought it to account,
the officer who is called upon to adjust it, should also inform his own Accounts Officer’

383. The initial accounts of cash and stores which are maintained in Sub-divisional Offices
should be closed on the 25th or such earlier date between the 19th and the 25th as
may be fixed by the AG
384. In cases where Sectional Officers are authorised to maintain separate initial accounts 3 days before
of stock in their charge, which have to be incorporated in those of the Subdivisions, date of closing
they may be permitted to close their monthly accounts fixed for SD
385. The cash and stock accounts of the Divisional Office should be closed on the last
working day of the calendar month.
386. The Transfer Entry Book of the month should be closed as soon as possible after expiry
of the month,
387. The several registers and schedules relating to the suspense and deposits heads of
account, the contractor’s ledger, works abstracts and registers of works, should be
reviewed monthly
388. In February or early in March, special steps should be taken in bring about all possible
reduction in the number and amounts of outstanding items at the close of the year.
389. The last day for the submission of March final accounts by the Public Works Disbursing 20th May or
Officers should be earlier date
390. Accounts of transaction with other Govt.s and with Railways must be settled
completely and communicated to the AG by the 12th April
391. If an item in the accounts which properly belongs to a revenue or expenditure head is
classified wrongly under another revenue or expenditure head, the error may be
corrected at any time before the accounts of the year are closed,

21
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
392. If an error is detected after submission to the AG of the Divisional Officer’s Not more than
Supplementary Account of the year it should be reported to the AG for his ten rupees.
instructions unless the amount is
393. All errors affecting debt (including suspense) and remittance heads must be
corrected, however old they may be.
394. When a correction is permissible, it should be made by a formal transfer entry, but
when it is not permissible, a suitable note of it should be made in the account
concerned.
395. All corrections in accounts, which may be advised by the AG on his auditing the Divisional
documents should, after verification, be carried out in all relevant records in red ink Accountant
and attested by the dated initials of the
396. If for the purpose of any pro forma account which the AG is require to prepare or
check, it is necessary to determine the charges incurred on a particular work or
service, or a group of works or services in accordance with instructions issued by the
AG in consultation with the Govt. concerned,
397. When the accounts of two or more Divisional Officers are to be amalgamated or those Accountant
of any office are either to be broken up into parts or closed, the Divisional Officers General
concerned should apply for instructions to be followed in time to the

398. The primary disbursing officer of the Division and he also collects some of the Divisional
departmental receipts of the Division and pays them into Civil Treasuries is Officer
399. The accounts of these receipts and disbursements including the transactions of the State
subordinate officials acting on his behalf are compiled under his supervision by an Government
Accountant posted to his office by
400. (i) Copies of cash book duly supported by vouchers- Twice a month or as oftener Sub-divisional
(ii) Abstract of Stock Receipts and Issues, Works Abstracts, Petty Works Requisitions, returns to DO
Transfer Entry Orders & Other returns- Within three days of the date on which the
accounts of a month are closed
401. The totals of the “cash” columns on both sides of the copy of the Sub-divisional cash
Book should be expressed in words in the Sub-divisional Officer ’s own hand
402. The AG may permit Sub-divisions at the headquarters of a Divisional Office to
maintain two alternative Cash Books—one being submitted in original to the
Divisional Office at the end of the month and the other being used in the month
following
403. (i) The cash stock transactions booked under the head “Transfers within Division” Non-inclusion in
(ii) Transactions recorded in the Cash Book under the head “Cash from Treasury”. schedules
(iii) transactions brought to account in the initial accounts of stock through the Cash
Book or the Transfer Entry Book
404. Before the actual compilation of the various schedules and schedule dockets, etc., is Abstract Book
undertaken, from the original Cash Books, Abstracts of Receipts and Issues of stock, (PWA 23) may
and the Transfer Entry Book be written up
405. cash vouchers and transfer entry orders, relating to (i) charges on works other than Schedule
percentages charged for establishment, tools and plant, etc., and (ii) other items of Docket (PWA
expenditure or disbursement for which a contingent bill is not required, should be 24)
posted in
406. (i) each work - Schedule of Works Expenditure Separate form
(ii) Deposits Works- Schedule of Works Expenditure to be used for
(iii) Takavi Work- Schedule of Takavi Works
(iv) each manufacture or other item of expenditure debitable to Stock and to be
accounted for in the Schedule of Debits to Stock
(v) each separate class of charges including refunds of revenue
407. The total of the month’s stock transactions relating to each schedule docket should
be entered therein as a single figure, plus or minus according as it is a debit or a credit,

22
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 and if there are both debits and credits, to be entered, the net result only should be
posted.
408. The Accountant General may at his discretion, permit Divisional Officers to post the
Schedule Dockets at the end of the month from the works abstracts
409. The AG may also at his discretion dispense with the preparation and submission of a
schedule docket for a work when the outlay on that work consists entirely of payment
on muster rolls or other vouchers not required to be submitted to the AG
410. Where a schedule includes charges for works supported by a schedule of works
expenditure, such charges and other transactions relating to the works expenditure
should be posted in the schedule dockets for the works concerned.
411. For percentage recoveries a single schedule docket should be prepared in Form PWA Serves as TEO
25 embracing all Government, as well as, Non-Government works on which these so should be
percentages may be leviable under rule. signed by DO
412. As soon after the expiry of the month as possible, the Divisional Office should effect Sch. of Monthly
a monthly settlement with all treasuries in respect of the transactions of the entire Settlement with
division Treasury
413. (i) Schedule of revenue realized. Schedule of
(ii) Schedule of refunds of revenue. revenue receipts
(iii) Schedule of receipts and recoveries on capital account.
(iv) A separate schedule should be prepared for each class of receipts for which a
separate register is maintained
414. (1) After a reconciliation has been effected between the totals of works abstracts and Schedules of
relevant schedule dockets, a schedule of works expenditure should be prepared works
(2) Separate schedules (i) Each major where expenditure incurred (ii) MES, Indian Air expenditure
Force, Railways, P&T, Archaeological Works and all other Govt. work (iv) All Non-
Govt. works other than deposit works & takavi works
415. Only those works on which expenditure has been incurred during the month should
be included in the schedule except for the month of September and March should
include all works, including those relating to which no transactions have appeared in
the accounts of those months
416. All works forming part of a single project or system should in all cases be grouped
together.
417. A copy of the Schedules pertaining to the accounts for September and March
(Supplementary) should be sent by the Divisional Officer to the Superintending
Engineer to appraise the latter of the excesses over the estimates, allotments, etc.
418. The schedules pertaining to the accounts for June, September, December and March The
(Supplementary) should include all works relating to National Highways and the Government of
Central Road Fund to enable the Accountant General to furnish quarterly statements India.
of expenditure on such works to
419. The entries in this schedule should be arranged in four groups (i) Manufacture (ii) Sch. of
Land, Kilns, etc.,” (iii) Storage (iv) Other Sub-heads Suspense
420. Under Other Sub-Head transactions
(i) individually, all items of expenditure on the carriage, handling, etc., of stock
materials shall be debited when the cost of such processes in debitable to the sub-
head of stock
(ii) individually, all items of acquisition of stock materials for which an estimate is
required
(iii) Collectively all other items of acquisition of stock materials.
421. In respect of each manufacture operation, the operation and out-turn should be
entered in two separate lines.
422. Stock Account consists of two part.
(i) Part I of this form is the main account which should show the receipts, issues and
balances, classified by sub-heads separately and should be lumped up.

23
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 (ii) Part II, the detailed Account of Issues, should be written up first, and from this part
and the schedule of debits to stock,
423. The Schedule relating to Purchase and MWA should be prepared on the basis of
entries in Suspense Register
(ii) a list of items outstanding for more than six months should be furnished to the
Accountant General every half-year with the monthly account for September and
March.
(iii) In the Schedule of MWA for the months other than March, items which do not
exceed ₹ 5 each may be shown in a lump sum, if so authorised by the AG
424. The Schedule of “Workshop Suspense” should be prepared in such form as may be
prescribed by Government in consultation with the Accountant General.
425. (1 should show in respect of each work, the amount of deposit received and the Sch. of deposit
expenditure incurred, both during the month and up-to-date transactions
(2) The amount of deposit received for each work should be numbered as a single
item, but transactions should show separately for (i) Work Expenditure and (ii)
percentage
426. Refunds of unexpended balances of completed works should be taken in reduction
of the deposits and, therefore, shown in the Schedule as minus realizations and not
as expenditure.
427. A schedule of complete transaction showing each item the opening balance, the
receipt and the adjustment of the month and the closing balance
428. From the Deposit Register, a monthly SCHEDULE OF DEPOSITS is prepared in two parts
(i) Part I-total for each class of deposit and (ii) Part II- detailed extracts from the
deposit register only such items effected by the month’s transactions.
429. The transactions relating to Takavi works should be consolidated to show the Sch. Of Takavi
expenditure incurred on each work, the amount realised on account of it and the Works
outstanding balance of the account.
430. Prepared separately for debits and credits under each major head, should be brought Sch. of
together all transactions which originate in the Division and have to be adjusted by Debits/Credits
the Accountant-General to Adjusting
431. In State Divisions the transactions included in the Schedules of Debits/Credits to Account
“Adjusting Account between Central and State Governments” should be grouped between
according to the prescribed heads of classification while in the Central Divisions the Central
transactions included in them should be detailed by each Government. and State Govt.
432. Similarly, in both the Central and State Divisions the transactions included in the
schedules of Debits/Credits to “Adjusting Account with Railways” should be grouped
according to each Railway.
433. Percentage recoveries for audit and accounts should appear in these schedules in the
case of State Divisions only.
434. In divisions under the administrative control of a State Government, any transactions Sch. of Dr./Cr to
which originate in the Division on behalf of any other State Governments should be Interstate
prepared separately for debit and credit transactions for each Govt. Suspense A/c
435. All remittance transactions other than Debits/Credits to Adjusting Account between Sch. Of Dr/Cr to
Central and State Govt. should be prepared separately for debits and credits and the Remittance
entries grouped under the headings
436. (1) 8782-Transfer between Officers,
(2) PW Remittance (i) Remittance into Bank II. Public Works Cheques (total only)
(3) 8658-Suspense (Civil)- MPSSA-I-Purchase Pending Adjustment/Payment and II-
Payment for purchases through DGS&D
437. The transactions to be accounted for in this schedule must be such as are adjustable Sch. of Dr./Cr.
finally in the books of the AG under one of the non-public works major heads of to Misc. Heads
revenue and expenditure or a debt head appertaining to the accounts of the of Account
Government to which the Division is subordinate.

24
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
438. Payable by PWD-Credits Schedule (Income Tax deducted from WCE, Pensionary
charges under Percentage charges, Audit and account charges (credit 0070 when
treated as receipt and minus debit 2016 when reduction of exp.),
439. Recoverable- Debit Schedule-Expenditure on works met from Subventions from
Central Road Fund
440. No transaction should be accounted for under the final or debt head concerned and
shown in the Schedules of Credits or Debits to Miscellaneous Heads of Account except
under the authorisation of the Accountant- General.
441. Ordinarily, they should be shown under remittance head (“Public Works
Remittance—III—Other Remittances”)
442. When cash required to meet contingent charges is drawn from treasuries by cheques, Consolidated
all contingent charges (including stock and adjustment charges) should be Contingent Bill
consolidated in the form prescribed in Treasury Rules of the Government concerned
for the monthly detailed bill of contingent charges countersigned after payment
(headed “not payable at the Treasury”).
443. Particulars of charges need not be entered in this account except in the case of
miscellaneous items which do not fall under one of the classified sub-heads for
specific charges.
444. A consolidated account of all expenditure debited against the grants of the Division Classified
should be prepared Abstract of Exp.
445. The figures relating to the several major and sub-major heads should be entered in
separate sections, arranged in the order indicated in the List of Major and Minor
Heads of Accounts.
446. When Works related to Indian Air Force, Posts, Telecommunications and
Archaeological Department are undertaken as a standing MES arrangement, and
funds for the purpose are allotted to the division, the expenditure connected
therewith should also be include as the classification prescribed by the PAO
447. Refunds of revenue should be excluded from this Abstract, as they are treated as
minus Revenue,
448. Receipts and Recoveries on Capital Account” should be included in this Abstract as
minus expenditure as they are taken in reduction of the charges under the major head
concerned.
449. This Account is an abstract of the entire receipts and disbursements of the month, as Monthly
detailed in the various schedules and registers, and shows also the opening and Accounts
closing cash balances.
450. On the back of the form are recorded (i) a memorandum of miscellaneous cash
receipts paid into treasuries and (ii) a certificate in respect of the closing cash balances
of the subordinate disbursing officers.
451. The entries in the account should be divided into three groups:
(i) Revenue Entries-From register of revenue
(ii) Expenditure Entries-From classified abstract of expenditure and
(iii) Other Head Entries- both receipt and disbursement are posted from schedule of
deposit, schedule of adjusting account, schedule of remittance, Misc. Heads etc.
452. The entries posted under the several heads in the monthly account should be checked
with the corresponding entries in the Abstract Book
453. The totals of the columns for receipts and disbursements must agree
454. If there is any difference due to cast being in transit between two disbursing officers
its amount should be included in the closing balance
455. Certificate of cash balance should be amplified to explain the amount and the steps
taken in adjust the difference.
456. The monthly account should be submitted so as to reach the AG’s Office by such date Submission of
between the 7th and 10th of the month following that to which it relates, as may be Monthly A/c to
fixed by the Accountant General in consultation with the Divisional Officer. the AG

25
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
457. The consolidated account of contingent expenditure is not required to accompany the
Monthly Account, if the contingent charges are drawn by bills presented direct at
treasuries
458. If the DO is required by any rule to make a formal report, periodically on deposit work
party concerned, a report setting forth the detail of estimate, receipt and expenditure
should accompany the schedule of deposit works, so that the AG may after audit of
the schedules verify the report and forward it to the party concerned.
459. If the DO is authorised to refund, without reference to higher authority, fines which
have been remitted by a court of law, the original orders of the court should
accompany the schedule of refunds of revenue, as the audit of the refunds made in
such cases is conducted by the AG on the authority of the orders of the court.
460. The schedules relating to the suspense and deposit accounts should be submitted to
the AG month after month, so long as there are balances outstanding under the
account concerned whether there have been any transactions during the month or
not.
461. (i) that this part is submitted invariably with the account for March and Dispense with
(ii) that, if Part II for any month contains works any expenditure on which has been submission of
debited to miscellaneous works advances an extract from Part II relating to such works Part II of Sch. of
only is submitted to him. Deposit by AG
462. All vouchers and transfer entry orders in support of cash payments and other charges
in the accounts should accompany the monthly account
463. (i) Muster rolls or other vouchers in support of payments to labourers irrespective of Not to be
amount submitted with
(ii) Vouchers in support of payments of wages to members of the WCE corresponding Monthly A/c
to class IV staff in regular establishments.
(iii) Other vouchers, whether relating to works or contingencies the amount on which
do not exceed ₹ 500
(iv) Invoices or other vouchers in acknowledgement of issues of stock materials
including issues of out-turn from manufacture to stock;
(v) Vouchers in support of payments made for the conversion of cash-deposits into
interest-bearing securities
464. (i) those involving debits to remittance heads otherwise than in respect of TEO not be
expenditure on works submitted
(ii) those relating to charges which are supported by vouchers received in transfer
(iii) those involving a credit to a revenue head (gross receipts), or to any Miscellaneous
Head of Account otherwise than in respect of expenditure on works.
465. Vouchers not submitted to the Accountant General should be “cancelled” by means
of a perforating or endorsing stamp and kept carefully to be made available for test
audit
466. When a voucher of this class is not submitted to the Accountant General, the reasons
should be noted against the entry of its amount in the schedule docket, or in the
schedule of works expenditure,
467. (i) All vouchers in support of payments for land acquired Other important
(ii) All survey reports of stores and sale accounts document to AG
468. the entry of the closing cash balance should be supported by (1) the original cash Special point of
balance reports of all disbursing officers including the DO, and (2) a certificate of the attention in r/o
DO to the effect that he has obtained, on or after 31st March, and retained in his of March A/c
office, an acknowledgement from the officer or subordinate concerned, in respect of
each items of imprest or temporary advance shown in the cash balance reports of the
Division for 31st March;
469. A statement, in the prescribed form to be attached to Part II of the Schedule of
Monthly Settlement with Treasuries,

26
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
470. the schedules of Credits/Debits pertaining to Railways should invariably be
despatched so as to reach the AG not later than the 7th April of the succeeding year
and all correcting entries by the 12th of April at the latest.
471. Within six weeks of the submission of the monthly account for March, a consolidated
certificate (annual certificates of balances) in respect of balances, other than cash,
should be forwarded to the Accountant General
472. In all cases in which there was a balance at the commencement of the year, or there
were any transactions during the year, a certificate should be recorded but the
wording of it may be amended suitably if the closing balance is nil.
473. A March supplementary account comprising the transfer entries and corrections
permitted should be submitted to the AG with all the necessary accompaniments, so
as to reach him by the 1st June or such other date as may be prescribed by him.
474. (i) Monthly Account To be signed by
(ii) List of Accounts DO unless
(iii) The consolidated account of contingent expenditure, absent from Hq
475. He should send to the Accountant General as soon as he can examine his books and When DO
papers on return, a report in PWA 45 (with a duplicate copy of the monthly account absent from HQ
signed by himself), without which the Accountant general will not pass the monthly
account finally.
476. Such other accounts (e.g. Subsidiary accounts of revenue, stores, stock and tools and
plant, and interest bearing securities, or pro forma account) should be submitted to
the AG as Government may prescribe or the Accountant General may require.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)