Preface
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 9

Adjustment Account with State Governments/ Defence/Railways/ 
Posts on account of Stores Purchases


Introductory 9.1
Procedure of settlement of payments made on behalf of the State Governments and Railways, Defence and Department of Posts 9.2.1
Procedure to be followed in respect of transactions relating to HCI London and ISM Washington 9.2.2
Procedure for operating Adjusting Account heads by PAO under CCA Supply for the supplies made to State Governments/Railways/Defence and Department of Posts 9.3.1
Procedure to be followed for operating Adjusting Account heads by CCA Min. of External Affairs for the purchases made by HCI London and ISM Washington 9.3.2
Action to be taken by PAO under CCA Supply for issue of advices to CAS, RBI, Nagpur 9.4.1—9.4.3
Procedure for reversal of erroneous debits by State Governments etc. through RBI, CAS, Nagpur 9.5
Procedure for adjustment of amount redebited by State Accountants General  etc. 9.6.1—9.6.3
Procedure to be followed where the clearance Memo from the RBI is received before rejected claim  9.7.1
Procedure on receipt of rejected claims 9.7.2
 

9.1 As already explained in Chapter 4, at the time of release of grants-in-aid and loans and advances to State Governments (except Jammu & Kashmir and Sikkim) and repayment of loans and interest thereon by them, the minor head '110 Reserve Bank Suspense-Central Accounts Office' is operated. Similarly, the minor head '101 Pay and Accounts Office Suspense' is operated between a Central Pay and Accounts Officer and other Accounts Officers including the State Accountants General for settlement of debits/credits arising in one accounts circle on behalf of the other Accounts Officer. In the following transactions, however, the head 'Pay and Accounts Office Suspense' is NOT operated:-

(a)(i) For supplies arranged by the Director General of Supplies and Disposals against orders received from the State Governments, Railways, Defence and Department of Posts for which payment is made by the Chief Controller of Accounts, Department of Supply through his offices at New Delhi, Bombay, Calcutta and Madras.

(ii) For crediting the sale proceeds of stores disposed of through the agency of the DGS&D and related miscellaneous credits; and

(b) For supplies arranged by the High Commissioner of India (HCI) London and India Supply Mission (ISM) Washington on behalf of Railways, Defence and Department of Posts for which the Chief Controller of Accounts, Ministry of External Affairs is the accounting/settlement authority.

Note:-As the banking business of Governments of Jammu and Kashmir and Sikkim is not conducted by the Reserve Bank of India, recoveries on account of supplies to these State Governments are effected by operating the minor head '101 Pay and Accounts Office Suspense' and raising an outward claim against the Accounts Officer/Authority concerned for re-imbursement by cheque/bank draft.

9 2.1 As the quantum of payments made on behalf of the State Governments and Railways, Defence and Department of Posts is very heavy, the cash settlement is not effected by raising a debit and sending an outward claim and awaiting its settlement and clearance by the Accounts Officers of these Governments/Departments. Pay and Accounts Officer, Department of Supply sends the debit vouchers directly to the concerned Accountants General or to the Accounts Officers of concerned Zonal Railways, Defence and Department of Posts. Simultaneously, an advice is sent to the Central Accounts Section, Reserve Bank of India, Nagpur to debit the balance of the concerned State Government or the Railways, Defence and Department of Posts, as the case may be and afford credit to the Department of Supply.

9.2.2 The HCI London and ISM Washington send the vouchers direct to the Accounts Officers of Railways, Defence and Department of Posts and simultaneously intimate the Chief Controller of Accounts, Ministry of External Affairs. The latter advises the Central Accounts Section, Reserve Bank of India, Nagpur to debit the balances of the Railways, Defence and Departments of Posts, as the case may be and give credit to his account.

The Pay and Accounts Officer under the Chief Controller of Accounts Department of Supply at, the time of making payment to the contractors for supplies arranged to any State Government or Railways, Defence and Department of Posts classifies the amounts as per supplier's bills debitable to the concerned Government/Department as under:-

(i) Dr. 8786-Adjusting Account between Central and State Governments.
- Name of the State Government.

or 

(ii) Dr. 8787-Adjusting Account with Railways.
- Name of the FA & CAO

or

(ii) Dr. 8788-Adjusting Account with Posts 
- Name of the Regional Postal Accounts Officer. 

or

(iv) Dr. 8789-Adjusting Account with Defence
- Name of the CDA.

9.3.2 In case of purchases made by the HCI, London and ISM Washington on behalf of Railways, Defence and Department of Posts, the Chief Controller of Accounts, Ministry of Internal Affairs debits the amounts against the concerned Accounts Officer under the following heads on receipt of the cash account and intimation from the HCI London and ISM Washington:-

(i)8787-Adjusting Account with Railways

or 

(ii) 8788-Adjusting Account with Posts

or 

(iii) 8789-Adjusting Account with Defence

9.4.1 The Pay and Accounts Officer under Chief Controller of Accounts, Department of Supply issues necessary advice to-Central Accounts Section, Reserve Bank of India, Nagpur on weekly basis requesting it to debit the balances of the State Governments, Railways, Defence and Department of Posts as the case may be, by affording credit to his account. A copy of the above advice is sent duly supported by vouchers and other necessary details to the Accounts Officer of the consignee Government/Department.

9.4.2 On receipt of the clearance memo from the Bark, a Transfer Entry will be prepared to carry out necessary account adjustments as under:-

Dr. 8675-Deposits with Reserve Bank 
101-Central-Civil

To

8786/8787/8788/8789-Adjusting Account between Central and Slate Governments/Adjusting Account with Railways/Adjusting Account with Posts/ Adjusting Account with Defence as the case may be. 

(-) Dr.

(Transfer entry prepared..........................).

9.4.3 In case of supplies arranged by the HCI London and ISM Washington, the Chief Controller of Accounts, Ministry of External Affairs will advise the Central Accounts Section, Reserve Bank of India, Nagpur to debit the balance- of the concerned Railways/Defence/Postal Accounts Officers. On receipt of the clearance memo from the Reserve Bank of India, CAS, Nagpur, necessary accounting adjustment will be made by him by preparing a Transfer Entry in the manner indicated in para 9.4.2 above.

Note:-In respect of supplies arranged by the HCI London and ISM Washington on behalf of the State Governments, the Chief Controller of Accounts, Ministry of External Affairs will not operate the major head '8786-Adjusting Account between Central and State Governments' but will raise the debit against the State Accountants General by operating the minor head 'Pay and Accounts Office Suspense" and settle the transactions on cash basis by obtaining cheque/bank draft.

9.5 If any erroneous debit is passed, on by the Pay and Accounts Officer, Department of Supply to any Accounts Officer, the latter may reverse adjustments through the Central Accounts Section of the Reserve Bank of India, Nagpur by operating on the head of account as indicated below:-

(i) The State Accountants General shall operate on the relevant remittance head indicated in Para 9.3.1(i) above.

(ii) Railways/Posts/Defence Accounts Officers shall operate the major etc. head 8658-Suspense Accounts -  Suspense Account Railways/Posts/Defence-Reserve Bank Suspense.

In order to link the transaction, the Accounts Officers concerned will quote the number and date of the relevant debit advice by the Reserve Bank of India, Central Accounts Section, Nagpur in all such correspondence.

9.6.1The State Accountants General, FA&CAOs Railways, Directors of Accounts Posts and Controllers of Defence Accounts will send copy of the advice addressed to the Reserve Bank of India, CAS, Nagpur reversing the adjustments in respect of erroneous debits to the Pay and Accounts Officer, Department of Supply. In case the advice is not accompanied with relevant vouchers, the Pay and Accounts Officer, Department of Supply will adjust the rejected claims by means of a Transfer Entry as under:-

Dr. 8658-Suspense Accounts
102-Suspense Accounts (Civil) 
Vouchers Suspense

To

8658-Suspense Accounts
110-Reserve Bank Suspense--Central Accounts Office. 

Cr.

(Transfer Entry prepared on receipt of debit advice without the Supporting Vouchers from the State Accountants General etc.)

9.6.2 Subsequently, on receipt of the vouchers relating to the rejected claims from the State Accountants General, etc. the Pay and Accounts Officer, Department of Supply will prepare a Transfer Entry as under:-

Dr (i) 8786/8787|8788/8789-Adjusting Account between Central and State Governments/ Adjusting Account with Railways/Posts/Defence (as the case may be in case the debit pertains to other State Governments or other Railways/Posts/Defence Account, Officers.)

Or

(ii) Dr. 8658-Suspense Accounts 
101 PAO Suspense
(in case the debit is found to pertain to other Central Pay and Accounts Officer) 

To

8658-Suspense Accounts
102-Suspense Accounts (Civil) 
Vouchers Suspense

(-) Dr

(Transfer Entry prepared on receipt of vouchers relating to the rejected claim from the State A.G./FA&CAO Railways /  Regional Postal Accounts Officers/ Controllers of Defence Accounts, as the case may be).

9.6 3 On receipt of clearance memo from the Reserve Bank of India, Central Accounts Section, Nagpur, the following Transfer Entry will be prepared:-

(-) Cr. 8658-Suspense Accounts

110 Reserve Bank Suspense 
-Central Accounts Office 

To

8675-Deposits with Reserve Bank 
101 Central--Civil.

Cr.

(Transfer Entry prepared on receipt of clearance memo from RBI, CAS, Nagpur debiting the balances of Central Government).

9.7.1 In case the clearance memo from the Reserve Bank of India debiting the balances of Central Government on account of the rejected claims is received before the rejected claim alongwith the connected vouchers, the following accounting adjustments will be made by the Pay and Accounts Officer, Department of Supply in his books by preparing a Transfer Entry as under:

(-) Cr. 8658- Suspense Accounts
110-Reserve Bank Suspense 
Central Accounts Office 

To

8675-Deposits with Reserve Bank
101-Central-Civil 

Cr.

(Transfer Entry prepared on receipt of clearance memo from RBI, CAS, Nagpur on account of rejected claims).

9.7.2     When the rejected claim with connected vouchers is received, the same will be examined to see if the claim pertains to other State Governments/ FA&CAO Railways/ Regional Accounts Officer Posts/ Controller of Defence Accounts or to other Central Civil Accounts Officer. On ascertaining the information, necessary Transfer Entry will be prepared as under:-

Dr (i) 8786-Adjusting Account between Central and State Governments. 

Or

(ii) 8787-Adjusting Account with Railways 

Or

(iii) 8788-Adjusting Account with Posts. 

Or

(iv) 8789-Adjusting Account with Defence. 

Or

(v) 8658-Suspense Accounts 
101-PAO Suspense

(in case the debit is found to pertain to other Central Pay and Accounts Officer)

To

8658-Suspense Accounts
110 Reserve Bank Suspense-Central Accounts Office

Cr.

(Transfer Entry prepared on receipt of Vouchers relating to rejected claims from State Accountants General etc.)

Note: Adjustments in the above manner will also be carried out when the advice is accompanied with Vouchers. In that case adjustments as in para 9.6.1 above will not be necessary.

The debit will subsequently be raised against the concerned Accounts Officer afresh by advising the Central Accounts Section, RBI, Nagpur or through an outward account as the case may be.

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Last Updated : 22 Mar,2014