1

Financial code.

Consolidated fund: - Rule 1.10

The consolidated fund of the state comprises of receipts and payments of money
pertaining to the Govt. Works of state

E.g. Receipts in consolidated fund of Payments in consolidated fund of state

state

=Receipts of taxes, VAT, passenger taxes =Expenditure for collection of taxes and
etc maintenance of law and order.
= Grant and aid from Govt. of India = Payment of salaries to the employees and
= State share of main excise duty and all other expenditure incurred by the
income tax various departments of the Govt.
= Money borrowed from GOI or from any = Repayment of money borrowed by the
bank or public Govt.
= Repayment of payment lent by Govt. to =Payment of interest on the money
local bodies, govt. employees and the borrowed by the Govt. and pension
public. payments.
=Interest realized by the Govt. on the loans =payment of salaries to the Governor and
lent to local bodies G/S’S & public. his staff, judges, ministers, MLA;s MLC’s
= receipts of forest department or other etc
departments. =Expenditure on power projects, roads,
buildings etc.
2

= Money lent by the Govt. to local bodies,

Govt. Employees and public.

.
Contingency fund: - Rule 1.11:-
The money can’t be incurred by the Govt. from consolidated fund of
state without the prior approval of legislature but unforeseen occurrence like floods,
earthquakes etc may happen when there would be no time to summon the legislature and
incur the expenditure. To meet with such occurrences the constitution has created
contingency fund in which a fixed sum of money is kept as may be approved by
legislature. This sum in the contingency fund is placed at the disposal of Governor
enabling him to allow advances from this fund for meeting unforeseen expenditure of the
Govt. in due course of time when this expenditure is approved by the Legislature and the
same is drawn from the consolidated fund and paid back into the contingency fund
thereby recouping it. This fund is a sort of permanent advance with the Governor.

Public Account: - Rule 1.6:-

This accommodates all receipts and payments which do not fall under the categoric
consolidated fund of state and in which the Govt. acts as a banker. All the money
received by the Govt. has to be paid back sooner or later and all the money paid by the
Govt. is received in the longer or shorter run.
The receipts in this fund are: G.P fund, C.P fund, Govt. insurance, revenue deposits,
judicial deposits and other deposits. Cash remittances received from one treasury to
another treasury. Commission on receipts collected in j & k on behalf of central Govt. or
any other state Govt. and miscellaneous receipts etc.
The payments in this fund are the payments connected with the repayment of money
received from the various sources as above.
3

Administrative approval: - Rule 3:- (1.3v-1)

It means a formal acceptance by the Govt. department of a proposal to incur a specified
amount on a specified work. E.g. construction of a building etc to be constructed by PWD
department for some other department. E.g. the Medical department gives approval for
construction of a District Hospital building at Baramullah at an estimated cost of Rs.
10.00 lacs through the R and B department. The execution of work by the R & B
Department shall however commence after the necessary funds are provided in the
budget.

Book Transfer: - Rule 1.6:-

When one department of the Govt. renders any service or makes any supplies to the
another department of the Govt. the payment of such services or supply is not made
generally in cash but through book transfer so that extra work of counting cash and the
risk and expenditure is avoided in carrying money from one office to another could be
avoided. In such cases the department which has to receive payment prepares a bill and
sent it for acceptance to another department. When the bill is accepted by the other
department the amount is debited to the department which accepts the bill and credited to
the department which prepares the bill. This sort of payment without involving cash is
called book transfer or book adjustment.

Cash. Rule 1.16 it is cash, coins, judicial stamps etc. Cash includes currency
notes, legal tender coins, demand drafts of banks, cheques tendered in payment of Govt.
dues, fifty paisa revenue stamps, judicial stamps, postal money orders, and post orders.
Rule 1.22 Financial year:- Means the budget year which starts from 1st of April and
ends on 31st of March

Local Bodies: - (1.28) Local body is governed by its own rules and
regulations. It is the authority legally entitled or superficially empowered by the Govt. to
administer a local fund for the betterment of the people of that locality e.g. Municipal
corporations, town area committees, Village Panchayats are local bodies.
4

The local bodies are independent of the Govt. except in matters of sanctions their
budget, creation of posts, enactment of their budget pension, T.A. and other service rules.

Appropriation: - Appropriation means the amount placed at the disposal of

DDO to meet expenditure under the heads like salary, TA, OE, telephone, POL etc for the
financial year.
REAPPROPRIATION: - it means the transfer of funds from one head of account to
another head of account but within the same grant. When it is felt that the expenditure
under the formal head account shall be for a particular year less than the amount kept
under that head and the expenditure under later head of account will be more than the
amount placed under that head.

White D.C. Bill: - It is a normal bill, after the signs or signatures of the
DDO is appended and is presented to the treasury for encashment. Whole detailed
contingent bill is prepared by office, signed by DDO and drawn in treasury E.g. O.E, &
T.E. Etc.

Red D.C. Bill:- It is not payable at the treasury. In case of advance, drawals
duly sanctioned by the competent authority and subsequently drawn from the concerned
treasury. A DDO is supposed/required to render the account of the advance drawn in the
form of Red D.C. Bill to the accountant General. The items of expenditure detailed in Red
DC bill are required to be countersigned by controlling officer. Controlling officer
disallows any item of expenditure which he feels is not covered under rules. He
countersigns the bill for the net amount and account rendered to A.G. by the DDO.
The red DC bill account is required to rendered to A.G. within one month from the
drawal of advance from the treasury.

Revenue of the state and receipt of the Govt. Rule-

1.39:-
Revenue of the Govt. means proceeds of the taxation like VAT, revenue from forests and
miscellaneous revenue of the Govt. Like fines imposed by Govt. and other proceeds of
unserviceable article.
5

Receipt of the Govt. means such amounts which come into the hands of the Govt. servants
in the first instance but have subsequently to be repaid. E.g. a contractor pays earnest
money of Rs. 500/= To an Ex. Engineer along with his tender for construction of a
building. If his tender is not found to be the lowest one, the earnest amount has to be
refunded back. A deduction of G.P. fund made from Govt. servants have at the time of
their retirement repay to Govt. servants so these are categorized as receipts of the Govt.

Major, Minor and detailed head of accounts:- Rule 1.30:-

A major head of account means a four digit code number allotted to a particular
department for booking its expenditure or for booking its revenues. E.g. the expenditure
of school education department is booked under the major head ‘2202’ general
education’ and its revenue is showed in major head “0202 education, sports, art and
culture” similarly the major head of A/c allotted for medical department for booking its
expenditure is “2201, medical and public health:” and 0210 is its major head for
revenue receipts.

Sub Major Head Of Account:- it is a sub division of major head e.g. the sub
major heads of major head 2202, general education are given below. It is denoted by two
digits.
01-elemetary education
02-secondary education
03-university and higher education
04-adult education

Minor Heads of account:- it is sub division of sub major head e.g. minor heads
of sub major head 02 , secondary education are as under:-
It is denoted by three digits.
001-Direction and administration
004- Research and training
105- Teachers training
106- Text Books
107- Scholarships
 6

108- Examination etc

052- Equipments
053-maintenance of Buildings
101- Inspection
104- Teachers and other services
800- other expenditure.

Detailed Head Of accounts:- are sub divisions of minor head & represents the
lowest accounting unit in which accounts of the Govt. are maintained, i.e. expenditure on
salaries, travel expenses, contingencies, machinery and equipments etc.
Primary unit of appropriation and secondary unit of appropriation:- sometimes when
the detailed head of a/cs are further divided into smaller units. E.g. detailed head
contingencies is divided into
1. office expenses
2. telephone charges
3. postages & telegraphs
4. Books and periodicals
In such a case the detailed head contingencies is treated as primary unit of
appropriation and office expenses, telephone charges, postage and telegraph, books and
periodicals are treated as secondary unit of appropriation.

Unit Of Appropriation:- Means the lowest account head under which a specific amount
is placed at the disposal of DDO for purpose of incurring expenditure for a particular
object e.g. salary, office expenses, TA etc are unit of appropriation.

*** Different major and minor heads are given on Photostat sheets separately,
already printed***

Disbursing Officer:- (Rule1.20 & 1.26):- Means an officer who is authorized to draw
money from the treasury through bills or cheques and then making its disbursement to the
concerned claimants.
 7

Generally speaking a DDO is the head of office in certain cases , the duties of DDO are
interested to the charge of an Accounts officer and the head of the office does not
discharge those duties. For instance the D.G. accounts and treasuries is the HOD as well
as head of the office but not the Disbursing officer , but the duties of the DDO of that
office are discharged by the accounts officer posted to that office.

Controlling Officer:- Rule 1.15:- Means an officer sub-ordinate to HOD but superior to
DDO. Sometimes a DDO works directly under HOD and in that case the HOD is the
controlling officer. E.g. D.G of accounts and treasuries department is the HOD of
accounts and treasuries department and he is also the controlling officer of joint director
accounts and treasuries.

Inspecting officer:- Rule 1.27:- Is an officer whose role or main duty is to conduct the
inspection of offices. The said officer normally remains on tours. The accounts officers,
AAO’s and other accounts personals posted in the office of Director audit and inspection
generally remain on tour for conducting audit and inspection of various offices.

Head of the department :- Rule 1.25:- is an officer who has been declared by the Govt.
to exercise administrative and financial powers of head of the department.

Q. what do the rules provide for payment of arrears claimed by the drawing officer
in the following cases;- Rule 2.43
1. Arrears claim within 6 months
2. Arrear claim older than 6 months
3. Arrear claim older than 3 years
4. Arrear claim older than time limits and laid by law of limitation.
Ans. Arrear claim do not require any audit by the A.G but have to be dealt by the DDO’s
as under;-
1. Arrear claim within six months can be drawn without any formality
2. arrear claim older than six months:- arrear claim older than six months can be
paid by DDO only after fulfillment of following conditions:
 8

i , the reasons for delay are kept on record before authorizing payment
ii, that a certificate is recorded on the bill that the reasons for delay have been explained
to the controlling officer.
iii, if the reasons of delay are satisfactory, the controlling shall file the case but in case
where the reasons for delay are not satisfactory, he will refer the case to the
administrative department and administrative department will take a serious view of such
cases and initiate disciplinary proceedings against the official at fault.
iv, TA claims or TA bills requiring counter signatures should be submitted for counter
signatures and those bills not requiring counter signs should be presented within one
year from the date of completion of journey for payments, failing which these are treated
as forfeited.
3. Arrear claim older than three Years:- Petty arrear claims of G/S’s older than
three years have to be rejected out rightly unless one of the two conditions are fulfilled
when these can be paid,
I, when delay is satisfactorily explained
ii, when arrear claim involves increase in the rate of pay which affects the amount of
punish.
Where conditions as explained above are fulfilled the arrear claim older than three years
shall be dealt with as under:-
a, when an arrear claim is taken up suddenly after a considerable time either because of
ignorance of rules or due to any other reasons it is to be rejected out rightly. But in
exceptional circumstances , for instance, in relation to re fixation of pay in which case
the pay is to be re fixed retrospectively but no arrears shall be paid.
b, When an arrear claim has remained under correspondence throughout the payment or
arrears can be made with the concurrence of finance department or in case of
disagreement by finance department, with the approval of cabinet.
4. Arrear claim time barred under the law of limitation:-
Petty arrear claims which are time barred in the eyes of law of limitations etc shall be
refused out rightly but when the amount is not petty and the reasons are convincing, the
payment may be made after obtaining Govt. sanction.
 9

Q. Duties and responsibilities of DDO in relation to cash or store coming under his
direct or indirect charge.
Ans:-1. A DDO is expected to be fully conversant with the financial and accounting rules
and procedures and if any embezzlement of cash or stores or any other irregularity takes
place in his office, he shall argue in vain that he has been mislead or deceived by his any
sub ordinate official. In fact he is required to check the work of his sub ordinate
effectively and that can only be done when he is fully familiar with the rules . ( Rule 2.1 )
2.( Rule 2.48):- The accounts of cash and stores have to be maintained in such a way that
the drawing officer is able to satisfy not only himself but also the accounts general and
his departmental superiors about the genuiness, economy and the correctness of the same
in all aspects. Especially in relation to payments , the records should be complete so that
this can stand all tests of the court of law in the event of dispute.
3. Private cash of any one should not be allowed to mix up with the Govt. cash in the
chest.
4. Apart from cash and stores, other properties and valuables including jewellery should
properly be accounted for in separate books as prescribed in the rules.

Important suggestions to DDO:- The drawing officer may in his own

interest watch;
1. No receipts of money remains unentered in the cash book.
2. Daily receipts of cash are deposited into treasury in full on the same day or the next day.
3. Money sent to treasury has really reached there and this is supported by a treasury
receipt.
4. Money shown as paid in the cash book has really been paid and paid to the right person.
5. There is no scope or possibility of making an entry of fraudulent drawls or bills in the
drawal register.
6. Drawal register has to be verified from the treasury every month.
 10

Rule. 6.24:- Write a note on Pay Acqittance roll:-

Every head of the office who draws pay bills and T.A. bills from the treasury is
required to keep office copies of these bills in the shape of pay and T.A. acquittance roll.
In addition office copies of pay and TA bills, these acquittance are used for obtaining the
signatures of the officials on these rolls in lieu of the payment made to them. Necessary
revenue stamps of value of Rs 2/= are duly affixed when payment exceeds Rs.20/-. The
acquittance roll of pay is a permanent record of every office and is very important in the
sense that it is the basic record from which the service books are maintained. The
payments of pay are carried to the cash book in the same day. If somebody does not come
forward to receive his pay dues within three months. The amount drawn is refunded into
the treasury. Keeping necessary note in the acquittance roll of pay. If he claims payment
afterwards the same is drawn from the treasury by preparing an arrear bill. Apart from
keeping copy of this in the pay acquittance roll necessary note is kept against the old
entry that the amount refunded has been drawn again vide cash voucher No. -----------
dated -------------- so that double drawal does not take place.

Contingent Charges:- the term contingent or contingencies means expenses incurred by

a DDO for the smooth running of the office or for the technical working of a department.
The contingent charges are drawn from a treasury on white DC bill. The expenditure on
execution of works , purchase of tools and plants in the PWD department is not falling
under contingencies. The expenditure on payment of pension able posts, scholarships and
TA is not also treated as expenditure in contingencies. The pay of sweepers, gardeners,
hot and cold weather staff. These are the expenditures drawn on white DC bills.
Types of contingencies:-
1. Fully vouched contingency :- In this type of contingency expenses are incurred
by the DDO without obtaining any sanction of the superior authority or getting it
countersigned by the controlling officer. These are drawn from the treasury through
white DC bills . Vouchers up to Rs.10/= are destroyed by the DDO while signing the
white DC Bills, vouchers from Rs 10/= to Rs 100/= are preserved for local audit and
above 100/= are sent with the white DC bill. Examples are purchase of a glass tumbler
and purchase of stationery articles not available in the Govt. stationery Department.
 11

2. Special Contingency:- in case of special contingency the expenditure are

incurred after obtaining sanction of competent authority. Reference to sanction no. and
date are recorded in the white DC bill . E.g. purchase of electric fan, iron safe etc.
Preservation of vouchers :-
I. Vouchers up to Rs. 10/- are destroyed by the DDO.
II. Vouchers from Rs.10/- to Rs.100/- are prepared for local audit.
III. Vouchers above Rs.100/- send to treasury with white DC bill.
(For [Link])
3. Scale regulated contingency :- it includes the expenditure incurred by a DDO as
per the prescribed scales provided in the relevant rules . These scales can not be
exceeded . The sanction of the competent authority as per book of financial powers is
needed. E.g. sanction of prize up to Rs. 150/= for agriculture shows in the Agriculture
department, rewards up to Rs.1000/- for assisting in criminal cases in the police
department.
4. Central contingency:- in this class of contingency the expenditure is incurred by
the DDO where the amount can be anticipated or estimated with reasonability. A lump
sum amount is placed at the disposal of DDO for his annual requirements. In this case
the vouchers up to Rs.50/- are destroyed and above Rs.50/- are preserved for local audit
by A.G.
5. Countersigned contingency:- the expenditure which is not covered under above
given four contingencies are covered under countersigned contingencies. The
expenditure on this account is drawn through White DC bills from treasury. But at the
end of month a copy of all the white DC bills drawn from treasury during the month is
prepared in the form of Red DC bill. ( Not payable at the treasury ). The bill is signed by
DDO and sent to controlling officer with vouchers above Rs.10/- for his
countersignatures. The controlling officer exercises his full check in order to ascertain
the genuiness, necessity and economy of expenditure. The controlling officer may
disallow any item of expenditure which needs to be refunded by the DDO. The red DC
bill duly countersigned by controlling officer for the net amount is forwarded to A.G. with
the vouchers which are above Rs.100/-.
12

Q. What is permanent advance:- (7.26):-

Ans. It is a fixed sum of money sanctioned by finance department for meeting the daily
requirements of DDO. So enabling the DDO to make petty payments from this advance.
When this is likely to be exhausted, the DDO will get white DC bill prepared, draw it
from treasury and recoup the advance . So the amount of permanent advance shall
always be available with the either in the shape of hard money or partly in the shape of
hard money and partly in the shape of paid vouchers. On 15 th of April the DDO is
supposed to give a certificate to A.G. regarding the amount available under permanent
advance. The similar certificate is required to be recorded at the time of transfer.

Q. Duties and responsibilities in relation to revenue receipts of departmental

collecting officers:-

Ans.1. They are responsible for preparation of demand register for revenue assigned to
their charge before the start of financial year.
2. When any remission of revenue is sanctioned or when any write- off is ordered.
3. They have to keep a proper account of the printed receipt book received from the
press. When a new receipt book is to be brought in use
4. They are responsible to count the number of receipts in the book and give a certificate
on the fly leaf to that effect. Anyone who pays government money has to be given
necessary receipts for that money from the receipt book. The counter folio remains in the
office for record.
5. All revenue receipts and other receipts for the day have to be remitted to the treasury
on the same day or at best by the next day. At the end of each month the remittance
register is sent to treasury for verification. Where after a statement of the remittance into
treasury is sent to the controlling officer.
 13

Special rules for fines of courts :-

1. All the courts have to maintain a register of fines imposed by them showing recovery
and refunds of fine sin the said register against the relevant entry and guard against
double refunds.
2. All judicial courts of District render monthly statement of judicial fines to the
additional district magistrate showing there in demand collection and balance and
refunds of each item. The treasury officers also send to the additional district magistrate
monthly statement of fines submitted to the treasury imposed by court. The additional
district Magistrate after consolidating said statements received from the treasuries have
to reconcile these statements with the statements of particular District.
3. Controlling officers:- The controlling officers have to ensure through their periodical
inspections of the DDOs that the demand registers required are to be prepared correctly
by the collecting officers. They have to ensure that the revenue realized is remitted into
the treasury without any fail and accordingly action is initiated to recover the balance
amount.
Controlling officers receive monthly statements that is in the shape of remittances into
treasuries from the collecting officers as well as from the A.G. who gives the figures of
treasury remittances of that department from the treasury account. After consolidating
the said statements the controlling officers reconcile the figures with those of A.G.’s
figures.
4. Head of the Department:- HOD’s who are in charge of the major revenue earning
departments like forest, excise and taxation etc. they send periodical returns of the
revenue to the finance department explaining major variation if any from the budget
estimates of the receipts. They also send annual statements of remission of Rs.100/- or
more ordered during the year to the A.G. explaining and justifying the remission.
[Link] Officers:-I, The treasury officers render monthly account to A.G. indicating therein
the revenue remitted by a particular department.
II, they send details of revenue remitted into treasury by excise and taxation officer.
III, they treasury officers verify the remittance register of collecting officer and in case of receipt
of judicial fines they send statement to Assistant district magistrate.
 14

6. Finance department :- the finance department receives the periodical returns of

collection of revenue from H.O.D’s who is in charge of a department yielding substantial
revenue to government and watches the progress against the budget estimates.
The finance department collects the interest on government securities and keeps detailed
account of that
7. Accountant General :-I, Accountant General sends monthly extracts of revenue
remitted into treasuries to controlling officers of various departments for check and
reconciliation with the figures received from departmental collecting officers.
Ii, The A.G. conducts general check of revenue accounts of major revenue earning
departments to see that the rules and procedures prescribed for demand collection and
remission are been implemented correctly. The A.G. may also suggest improvements in
rules and proceedings to the Government. If such general checks which they have made
reveal any defect in the rules.
iii. Where any scale or periodicity for revenue collection has been prescribed, the AG has
to see that those are adhered to strictly.
Iv. if the A.G. finds any case of substantial outstanding of revenue dues he may suggest
remedies for speedy recovery of arrears.
V. the A.G has to watch the recovery of establishment charges etc from the local bodies
for the works executed by the Govt. for them. The A.G. has also to watch the recovery
dues for central Govt. or any other state Govt.

Q. Responsibilities of Drawing officers and controlling officer in respect of contingent

expenditures.
Ans. A DDO is primarily responsible for the contingent expenditure incurred by him. He
has not only to satisfy himself that the claims made by him are valid and arithmetically
correct. And the amount has been paid to the right persons. He has to certify the A.G.
about the validity of the claim.
A DDO is responsible that the rules have been followed in preparation of bills and
vouchers have been destroyed which were supposed to destroy and vouchers preserved
which are supposed to preserve for audit purposes. It is to be ascertained by the DDO
that the vouchers are cancelled in red ink to avoid double payment. The DDO has to
15

ensure that the vouchers require to send to treasury are actually sent and the vouchers
required to send to controlling officer are actually sent there.
Controlling officer may call details of important items of expenditure from DDO,
hereby he exercises check about the genuiness of the expenditure.
Controlling officer has to check and see that the expenditure was necessary, the rates
are reasonable and the sanction of higher authorities has been sought. The calculations
are correct. He has to ensure that the expenditure is not over the estimates . Other items
of expenditure is checked and seen by the controlling officer at the time of his annual
administration.
Q. As a matter of rule receipts of money have to be in a treasury & not utilized to meet
government expenditure specify the exceptions to this rule.
Ans. whenever any payment is to be made by DDO. He has to prepare a bill & draw the
same from the treasury but in certain cases as detailed below that DDO can make
payment out of money received by him as Govt. receipts.
Rule 2.1: 1. Money on account of service of summons and diet money of witnesses
received by the court of law for three months to make payment to the concerns. If the
claimant does not come up for payment within time the amount is paid into the treasury
as deposit. Complete account of all such money retained in the court and paid to the
witnesses is duly kept and a quarterly certificate is sent to the A.G. to the effect that all
unpaid items of money older than three months have been paid into treasury.
2. In the PWD Govt. receipts can be utilized for meeting Govt.. expenditure but at the end
of each month a self cheque is to be drawn for the amount thus utilized and the cheques is
sent to treasury for crediting to PWD.
3. In forest department it is permissible in the event of urgent necessities to spent Govt.
receipts for Govt. expenditure.
4. In the case of milk supply scheme where the advances are received from the customers
etc. it is permissible to make refunds of these advances from Govt. receipts.
5. In the case of education institutions the receipts realized by them on account of grazing
charges from the orchards or fields. May be utilized for meeting expenditures on the
improvement of these orchards or fields attached to the institutions.
6. the receipts on account of students games funds, library fund examination fund and
16

Other money in the education institution shall be remitted into the treasury as revenue
deposit and drawals should be made from time to time as per rule. The detailed account
of all these items needs to be kept by these institutions and the expenditure cant incurred
outside the purpose of the fund without the sanction of the department but now an
amendment has taken place for virtue of which these institutions are allowed to keep the
amount in the banks and the expenditure is incurred by the Head of the Institution and
the payment is accordingly made out of the said account. However the detailed account
needs to be kept by the institution.

Q. Maintenance of cash book:-

All government servants who are required to handle cash had to maintain a cash book in
the prescribed form. The pages of the cash book should be machine numbered and before
starting maintenance of cash book of the office , the pages are counted and a count
certificate is recorded on the ist page of the cash book . All the cash transactions are
entered in the cash book as soon as they take place and these are checked and attested by
head of the office. There should be no overwriting in the cash book, if any mistake is
found, that is to be corrected by canceling the wrong entry and making the new entry in
red ink duly attested by the dated initials by head of the office.
When a payment is to be made through DD, it will appear on the receipt side as well as
on the payment side of cash book. That is the first entry shall show the encashment of
white DC bill from treasury and the second one shall show the cash having been remitted
to bank for obtaining a bank draft.
All the receipts of day should be paid to treasury on the same day or next working day.
The head of office should attest this entry in the cash book only after the treasury receipts
have been obtained from treasury.
Cash book is to be closed daily and signed by the head of the office, in addition at the end
of each month , the book balance of the cash is to be verified with the actual balance with
the chest and certificate to this effect should be recorded in the cash book. It should be
remembered that the private cash should not be kept in cash chest while conducting cash
verifications, if any excess or shortage is found, that is to be duly shown in the cash book
“ to cash found surplus” or “ by cash found short”. If the amount of shortage is
 17

substantial , the necessary disciplinary action is required to be taken against the

defaulter.
The head of office may interest work of maintaining cash book to any senior officer of his
office.
Q. The procedure laid down in the rules for drawing the money from the treasury
through cheques?
Ans. Normally drawals are made from the treasury on the printed forms of bills for pay,
T.A. & white DC bills forms etc. But in the case of public works departments, forest and
such other departments. The departmental offices are authorized to make drawals from
the treasury on cheque and these are governed by following rules:
1. That the cheque book required by these officers is obtained from treasury offices on a
written requisition for the same.
2. That the number of cheques containing a cheque book is duly counted and a certificate of
counting is recorded in the fly leaf.
3. The cheque books are kept under the lock and key by the DDO.
4. That the separate cheque book is obtained from the concerned treasuries of the DDO is
required to keep account with more than one treasury.
5. That loss of any cheque book or a cheque is promptly notified to concerned treasury
officer to safeguard fraudulent drawals.
6. That no cheque is drawn unless the payment is intended to be made immediately and in
particular cheque should not be drawn at the close of the year and kept in cash chest in
order to show full utilization of grants.
7. That payment of Rs 10/- or above are made by cheque unless these are to be made to be
cash i.e. pay of the staff.
8. That a cheque is drawn in favour of self to replenish the cash chest is entered on receipt
side on the cash book at once without waiting for actual realization of cash from
treasury.
9. That the cheque remained current for three full months after month of issuance of the
cheque. Where after these can be replaced by a fresh cheque to be issued in lieu of time
barred cheque. E.g. the cheque issued on 1 st April or 30th April 2011 will remain current
for payment up to 31st July 2011.
 18

10. That no fresh cheque is issued in lieu of lost cheque unless a certificate is obtained from
the treasury officer to the effect that the cheque has not been paid by him and the same
shall not be paid by him. If it is presented to him for encashment in future.
11. There is no objection in signing a bill in ball pen while Rule 2.20 E.

Q. Canons of Financial Propriety to be observed while spending Govt. Money;-

(Rule 2.60)?
Ans.1. A G/S should exercise the same vigil in respect of public expenditure as of
ordinary prudence who exercise in respect of his personal private expenditure.
2. That the expenditure should not be more than the occasional demands.
3. That no expenditure is sanctioned by any officer for his own advantage whether direct
or indirect.
4. That expenditure is not incurred for the benefit of a particular person or section of
community unless it is expressly authorized by the rules, the amount is insignificant or
the expenditure is incurred in pursuance of a recognized policy or customs.
5. The expenditure incurred in the 1st instance does not bind the Govt. to make more
payments in future which are beyond the powers of the sanction of officer making the 1 st
payment.
6. T A payments or HRA are not made a source of profit to the G/s.
7. That the money borrowed is allotted for a specific purpose must be spend on that
purpose.
8. The expenditure should not be under all circumstances should not exceed the budget
allotment.
9. The budget guard register or expenditure register must be maintained properly,
recording therein the budget allocation, the expenditure, and progressive expenditure
and the total budget available after deducting the expenditure.
10. The DDO should invariably sign under his dated initials the budget guard register or
expenditure register.
19

Q. As a matter of rule the Two Rupee Revenue stamp are affixed in all case of
payments. Specify the exceptions to this rule?

Ans; 1. Payment of Rs.20/- or less.

2. Payment made to a G/S of J and K state in his official capacity.
3. Payment made to Govt. of India or any other state Govt.
4. Payment of Hundies from treasuries.
5. Payment of Cheques from treasuries .
6. Payment of postal money orders.
7. Payment to co-op. societies.
8. Payment of scholarships to students.
9. Grant in aid to private schools.
10. Payment of pay bills or TA bills from treasuries.
( Revenue stamps are affixed on acquittance roll of Pay and TA).
Q. Instruction laid down in the rules for preparation of bills to be drawn from the
treasury?
Ans.1. RULE 2.27(d):- Bills are prepared in the printed prescribed form that is pay bill
form, T.A. bill form, WDC bill form.
2. The bills are signed in ink by the DDO and the period of claim and detailed
classification i.e. major, minor, & detailed head of account is correctly shown.
3. The bills can be prepared and signed in bull pen vide rule (2.27-d).
4. II. Rule 7.58:- T.A. bills are such other bills which require counter signatures are duly
counter signed as per rules. The sanction of competent authority wherever needed i.e.
sanction for grant of festival advance or advance pay, T.A at the time of transfer is
necessarily to be enclosed with the bill.
5. The amount of the bills is shown both in words and figures. The DDO should sign the
pay order on the bill enabling the treasury officer to make the payment of the bill to the
authorized person.
6. All the corrections in the bill are in the authority of the payment are duly attested with
dated signatures of the DDO.
 20

7. Wherever any correction is required to be made in the bill. The incorrect entry should
be cancelled in Red ink and correct one written a fresh under the dated initials of the
DDO.
8. All the deductions schedules on account of GP fund, income tax, festival advance,
insurance fund excess amount drawn, shall be accompanying with the bill.
9. The charge on account of different major heads are drawn on separate bills.
10. Every bill should contain an entry to the effect that the bill is under Rs.-----------
11. Every bill is recorded in the drawal register.
Q. Duties of Treasury officer in respect of retrenchment slips received from
Accountant General for effecting recoveries from the Govt. servant.
Ans. All retrenchment slips received by T.O. from the [Link] recorded in the register of
retrenchment recoveries and the recoveries are affected by him in full . But if the excess
is reasonably explained the recovery of that may be made with the orders of A.G. in
installments equal to 1/3 of gross salary from the pay dues of Govt. servant. The treasury
officer is not required to listen any argument made by the Govt. Servant to the effect that:
1. The copy of retrenchment slip meant for the Govt. servant stands not received by him
from the A.G.
2. The Govt. servant has protested or represented his care for not effecting recovery to the
A.G. or any other authority.
3. The A.G. has issue retrenchment slip without giving a notice of warning to the Govt.
servant in the ist instance. Responsibilities of following officers in respect for overcharge,
excess drawals, fradulent drawals, misappropriation or embezzlement.
A. Drawing and Disbursing Officer:-
1. DDO is basically responsible for any excess of fraudulent drawal or misappropriation or
embezzlement of Govt. money and shall be responsible to make good any loss. So he must
be thoroughly familiar with the basic financial rules and procedures governing recovery
of Govt. revenue and its prompt or speedy remittances into treasury. The drawals of bills
are made from the treasury only when needed for immediate disbursement.
2. The DDO should for this purpose ensure that monthly remittances and monthly drawal
registers maintained by his officers are got checked and attested from treasury officers,
monthly. So as to see and check that all the remittances made by the DDO to treasury
 21

registers or records and the bills shown as paid by the treasury during the month or all
bonafide drawals made by him(DDO). So that it is assured that no forged bill is drawn
from the treasury, which not bears genuine signatures of concerned DDO.
3. The DDO should see that all receipts are remitted into treasury promptly and that the
bills drawn from the treasury are paid to the right persons and a certificate to this effect
is recorded in the relevant registers maintained by the DDO for this purpose.
B. Controlling Officer:-
1. Controlling officer has to receive periodical account returns from the sub-ordinate
DDO’s and is required under rules to conduct the periodical inspections of his sub-
ordinate DDO’s.
2. The controlling officer has to ensure that the revenue realizable has been realized and
paid into the treasury.
3. The controlling officer receives monthly statements from his DDO’s relating to the
revenue remitted into the treasury and drawals made by the DDO into the treasury.
4. The monthly revenue remittances and monthly payment of the respective circles are also
received from A.G. to the controlling officer.
5. The controlling officer reconciles these figures with the figures of treasury or A.G.
6. The controlling officer has to ensure there the bills have been drawn from the treasury by
DDO only when need for immediate disbursement arises.
7. Controlling officer has to ensure that the rates charged in the bills are not extravagant or
in excess. The expenditure is covered by budget provisions. The acquittance roll from the
right person has been obtained by DDO. All final rules and orders have been observed.
He has to ensure that all necessary checks as prescribed in the rules stands observed. So
as to prevent and detect errors and irregularities & to guard against the wasteful
expenditure.
8.
C. Treasury officer:- the treasury officer is responsible to ensure:
[Link] signatures of the officers on the bill are genuine and verified with those recorded
by treasury officer in the register of specimen signatures.
2. The treasury officer has to ensure that the arithmetical calculations of the bills are
correct and that the payment is covered under rules.
22

3. That there is no error in the bill.

4. That the bills are not paid by the treasury unless the same is recorded in the drawal
register by the DDO.
5. The T.O. is required to ensure that the bill is not passed in excess of allotment of funds
as intimated to the treasury by the controlling officer.
6. The treasury officer has to ensure monthly drawal verification and is required under
rules not to pass the bills of a particular month unless the drawals made by the DDO for
the previous month are not verified.
7. The T.O. is required under rules to verify the remittances made by the DDO into the
treasury.
8. In respect of DDO operating through cheques the form 5051 is required to be verified
on monthly basis without which the rendition of account by the chest holding DDO’s to
the A.G. is incomplete.
9. The T.O. is required to render the GP fund and SLI account to the respective fund
office along with the necessary schedules received from the DDO while passing the bills.
So as rendition of other detailed account is concerned. Those are required to render to
the concerned officer.
10. The T.O. is required to maintain the detailed stamp accounts of various
denominations and is required to send plus and minus memo to the sales tax
commissioner.
Q. Describe the procedures prescribed in the rules for dealing with the case of
defalcation and losses of Govt. money and stores:-
Ans.1. Every Govt. servant is personally responsible for any loss of Govt. money through
fraud or negligence on his part.
2. Cases of defalcation and losses of Govt. money or stores or property taking place in
any office should immediately be reported to the next superior authority and as well as to
the A.G. even though the loss has been made good on the spot.
3. The cases in which the amount involved is Rs 500/- or less and need not to be reported
to the A.G. However disciplinary action should be initiated to locate the responsibility &
accordingly affect recovery.
4. Report of losses has to be sent to the concern officers as indicated below:
23

I. When the loss is 300 or below the case needs to be referred to controlling officer.
II. When the case is from 300 to 500 rupees it is to be referred to the HOD.
IV. When the loss is more than 500 it is to be reported to HOD and A.G.
V. Losses irrespective of amount which discloses defect in the rules and
procedures are disclosed or serious negligence on the part of any Govt.
servant and the matter needs to be referred to Administrative secretariat
and finance department.
VI. Cases of losses which is result of sabotage irrespective of the amount
involved and other cases of losses of Rs 10000/- and more have to be
reported immediately to police for investigation with copy to higher
authorities.
VII. Losses of immovable property of Rs. 5000/- or less due to the natural
calamity be reported to the HOD only and not to the A.G. and those
exceeding Rs.5000/- to the govt. and also to the A.G.

Q. Rules regulating issue of duplicate copy of vouchers/receipts?

1. It is not permissible to issue a duplicate copy of receipts granted for money received or
if a bill paid from the Govt. Treasury on the plea that the original has been lost.
2. If necessity arises a certificate can be issued to the effect that such amount of money is
received from or paid to a certain person on a specified date indicating the nature of
receipt or payment as the case may be.
3. If a bill stands signed by a DDO is lost, before its encashment from the treasury, the
DDO shall verify its non encashment from treasury and only then prepare duplicate copy
of the same.
4. The vouchers which stand rendered to the A.G. along with the accounts are retained in
his office and not returned to the departmental officers for purpose of incovery or
investigation, unless a formal requisition from the same is received by the A.G. from a
police officer or court of law. However photocopies of required vouchers duly attested
may be obtained from A.G. on formal requisition by incovery officer conducting
departmental proceedings against a G/S in respect of any charge, criminal or otherwise.
24

Q. No Demand Certificate:-
1. NDC is one of the documents required for finalization of pension papers of retiring
G/S and is issued by the competent authority in the prescribed form in article-289-A of
J&K CSR , Vol-I certifying that nothing is outstanding against the G/S . If there is any
outstanding on account of rent of Government quarters or any other recovery against the
G/S. the G/S is required to give a surety bond signed by a permanent G/S of an equal or
higher rank in form-2 of schedule-12th of J & K CSR Vol-I. In respect of rent of Govt.
Quarters the NDC is to be issued by Director Estates for the cities of Jammu and
Srinagar and by Chief Engineer R & B for the building of other stations. If the Head of
the officer certifies that the official has never occupied Govt. Residential building. There
is no need of getting a certificate a certificate from Director of Estates and Chief
Engineer R & B. But in this case the retiring G/S will have to give a surety bond as
referred above.
2. In respect of recoveries of excess pay, rent of departmental quarters ( Not the quarters
of PWD or Estates) and outstanding of house building advance, car advance etc. The
NDC is to be issued by the Head of the Office.
3. If an NDC is not issued within Six months after execution of Govt. quarters whichever
is later, the recoveries if any found against the G/S may be made from the officials
responsible for delaying the NDC or through legal action.

Q. Is it permissible under rules to draw monthly pay bills from the treasury before 1st
of the next month?
Ans. 1. Pay for the month of March can’t be drawn from treasury before ist of April.
2. Pay for the month of June & December can be drawn from the treasury on the
penultimate days of the month i.e. closing day of banks.
3. Pay for the remaining nine months of the year can be drawn from the treasury on last
working days of the month.
4. In the event of G/S proceeding outside India or on leave or deployment or vacations or
in the event of transfer of a G/S from one drawing officer to another Drawing officer, it is
permissible to draw the pay for the working days immediately after being relieved from
25

that office. The pay for the remaining days of the month including joining time can be
drawn from new office.
5. In case the pay dues for the working days are not drawn in the old office, the pay dues
for full month shall be drawn in the new office but pay dues for working days of old office
shall be shown in the pay bill as debted to account head of old office.
6. For providing sufficient time to the treasuries for effecting through check of the pay
bills, the bills are required to be sent to treasury three to six days in advance.

Q Procedure for effective recoveries for the Govt. Servants:

1. Demand statements for rent recoverable are received for PWD divisions.
2. Court attachments against G/S’s are received from courts.
1. Demand statements for rent:- These statements are sent to the Head of the office
in triplicate by the PWD divisions or Director estates. The recovery is to be made
from the very first payable of Govt. Servant and two copies of demand statements
shall be attached to the bill while sending that bill to the treasury. As regards
third copy the amount recovered from the bill shall be shown in it by the Head of
the office and copy shall be returned to concerned divisions from whom the rent
demand statements has been received. Recoveries of house rent can be made from
subsistence allowance.
2. Court attachments:-
I. The maximum amount which can be attached by the courts monthly is
equal to the half of the amount of the salary and allowances.
II. The contribution and recoveries of GP fund/House building advance etc
have to be made from the balance amount.
III. When a court attachment is received by the DDO, he should keep a
necessary note of recovery in his records and when the pay bill is drawn
from the treasury he will deduct the amount of attachment as explained
above. The amount thus recovered shall be remitted by the DDO to the
court after deducting the necessary charges and he shall invariably keep a
note on the acquittance roll of pay.
26

IV. If a G/s refuses to receive the balance amount on the one reason or other
and even does not signature acquittance roll of pay just to evade the
recovery of attachments that does not matter. The amount of attachments
shall be recovered and remitted to court under all circumstances. If the
Govt. servant does receive the amount for a period of three months, the
amount of balance shall be refunded to the treasury.
V. If there are more than one attachment orders received by the DDO in
respect of the same G/S, the amount is to be recovered in respect of the
attachments received first and when the amount is liquidated fully the
recovery of second attachment will begun. No recoveries of court
attachments can be made from subsistence allowance and similarly no
recoveries can be made from pension.

Q. Rules for payment of dues to deceased Govt. servant?

Ans. Pay and allowance of a deceased G/S up to date and including the day of death
whether the death takes place in the F.N. or A.N. to the legal heirs on the production of
succession certificate. But in the following cases the payment be made without insisting
upon the production of successor certificate.
1. When the amount of payment is Rs. 10000/- or less the payment can be made with
orders of District commissioner If the amount is to be drawn from Mufasil
treasury and under the orders of District treasury officer when the amount is to be
drawn from a District or Saddar Treasury. When the payment of amount exceeds
Rs.10000/- it can be made on the following conditions:
I. That an indemnity bond is executed.
II. That the Govt. is satisfied about the title of claimant.
III. When the Govt. feels that undue delay and hardships would be caused to the
claimant , if the Succession certificate is insisted upon and when there are
more than one claimants the share of each shall be shown in the Govt. order.
IV. When the whereabouts of a G/S are not known and any amount due to him
may be paid to the legal heirs provided there are valid grounds for a
presumption that Govt. Servant has died.
27

V. In case of death of a pensioner, the arrears of pension are paid to the

beneficiaries for the full month in which the death takes place .the family
pension in such cases will commence from 1st of next month.

Q. Write a note on Last Pay Certificate:-1. it is required to be issued by the DDO when
a G/S working in the office is transferred to another office or when someone is sent on
deputation or when a G/s retires from service. The date of handing over charges
indicating therein A.N. & F.N. The rate at which the G/S is paid in the old office is
shown in the relevant column of LPC.
2. When the DDO is himself transferred, his LPC is issued under the signatures of new
officer who takes over his charge.
3. Once the LPC is issued the old office is debarred from making any to the transferred
G/s, unless the LPC is surrendered back to the old office.
4. All recoveries of GP fund, income tax, insurance, house building advance, festival
advance etc are shown in the LPC. This enabling the new DDO to effect the recoveries.
Any recovery which due to oversight has not been intimated shall be communicated later
on under a registered cover. Any court attachment received shall also be communicated
for effecting recovery.
5. If LPC is not received, it is permissible for new DDO to draw the pay provisionally for
three months after obtaining the details of pay drawn by Govt. servant in the old office.
The details are to be obtained in the shape of affidavit. The concerned Govt. Servant
shall have to provide undertaking in the event of excess drawal of pay, the same shall be
refunded by him. The recovery on account of GP fund etc shall also be made by him on
receipt of LPC.
6. The Drawal of provisional pay beyond three months can be allowed by administrative
secretary.
7. The pay of reemployment pensioners may be determined provisionally on the
particulars of pay etc. drawn at the time of retirement as furnished by Govt. servant in
the form of an affidavit and his pay shall accordingly be during his reemployment
determined on the basis of details or document made available by him (reemployed). This
provisional pay after reemployment case also be paid for a period of three months.
28

However he has to furnish an undertaking to the effect that the excess if found at any time
shall be recovered.

ANNUAL ESTABLISHMENT RETURN:-

1. Annual establishment return is a statement which is sent by every drawing officer
to the head of the department every year before 15 th of April showing the details
of permanent as well as temporary Govt. Servants (Gazzetted as well as Non
Gazzetted) who had been working in his office during the year to which this
return pertains. It also shows the details of posts which had remained vacant
during the year and also indicates the date of birth of each employee.
2. The main purpose of this return is that it enables the HOD to know the names of
those G/S’s who are due to retire in the next year and for whom necessary
superannuation lists have to be prepared for circulation and information of all
concerned employees whose retirement falls due during the coming years. It also
enables the head of the office to initiate action for the preparation of pension
papers of retiring Govt. servants in time.
The annual establishment return contains information about the service
particulars of G/s’s as detailed below:
i. Name of the Govt. servant indicating his scale of pay/ rate of pay and
increment date.
ii. Status of Govt. servant; substantive, officiating or quasi-permanent.
iii. Date of Birth.
iv. A list of G/S’s who have joined the office during the year as result of transfer
from another office or a fresh appointee to Govt. service is also enclosed with
annual establishment return.
v. The list also shows the names of those G/S’s who have left the office by way of
transfer or by way of resignation or retirement.
vi. All periods of leave, deputation to foreign service and suspension periods are
to be shown in respect of each Govt. servant in detail.
vii. So far as suspension period is concerned it has to be invariably specified
whether suspension period will count for pension or not.
29

viii. If a G/S is in transit on the last day of March shall be distinctly shown by the
old office regarding new entrance. A certificate is to be recorded by head of
the office to the effect that the entries have been verified from the service book
or service records. A copy of annual establishment return is required to be
kept as office record.

Q. ABSENTEE STATEMENT:-
Ans. It is a statement of G/S of an office who happens to be absent from the office either
on leave other than casual leave or on deputation or under suspension during the month.
This statement is enclosed with the pay bill showing therein the name of G/s, their rate of
pay and the period for which he has remained on leave etc. The rate of officiating pay
and the name of those G/s’s who have officiated on leave or suspension vacancy are
shown in the statement in detail..

Q. SERVICE BOOK:- Service book is a booklet containing the service

particulars of a G/S from the date he entered into the Govt. service up to the date he
leaves it. It is duty of every DDO to obtain sufficient number of service books & then start
service book for each employee appointed to the G/S for the 1st time.
The 1 st page of service book contains the name of G/S, his father’s name with DOB
also. The 1st page of service book is signed by both DDO and G/S and these signatures
are renewed after every 5 years. It also contains the information regarding pay scale,
status with designation, name of the officer where the G/S has remained posted from time
to time, joining time availed and not availed, promotions, reversions, suspensions, annual
increment, efficiency base, various leaves excepting casual leaves. There are no service
books maintained in respect of executive officials of police department for whom
character rolls are maintained which also contains details of service particulars of those
G/s’s . similarly service rolls instead of service books are maintained for gardeners,
mathes, boatmen, sweepers which contains the service particulars of those G/S’s.
30

FOREST
CODE
31

Forest Remittances:- All sums paid into the treasury by the departmental officer
or on his account should be debted to remittance or forest remittance, irrespective of
whether the remittance are made in cash or by cheque. Similarly the value of all cheques
drawn should be credited to forest remittance irrespective the fact whether they are
cashed at once.
Advances to disbursers:- when a subordinate officer( Range officer ) who is not
authorized to draw a cheque against the joint account of divisional officer is given a cash
advance of suitable amount enabling him to make disbursement under his charge. The
said account of advance should be debted into the accounts of this officer, making the
advance to “forest advances” as an advance to the disburser concern. When an account
of the advances is rendered by disburser the amount of expenditure incurred should be
credited to forest advances by a per contra debt to the appropriate sub-heads of
accounts.
Advances to contractors:- Advances to contractors, suppliers and labours made in
connection with the execution of works under the orders of competent authority should be
debted to the accounts of the officer making the advance to the head, “works advance”,
subordinate to the minor head (conservance & works). The entry being supported by an
acknowledgement by the payee. When recovered wholly and partially from the contractor
either by work done or in cash. The amount recovered should be credited to “works
advance”. If the recovery is in the shape of value of work done such value should
simultaneously debted per centre to the appropriate sub-heads of accounts classification.
Petty advances to labor which are made by sub-ordinate out of his own impressel
advance shall be treated as pact of cash balance with him should not however be treated
as “works account”.
32

Recoveries of service payments:- Recoveries of service payments should be dealt with as

follows:
1. If made before the close of the year in the accounts of which the payment was
included.
I. When the recovery is in adjustment of an overcharge on account of pay or
TA and is made by deduction from a bill debtable to the same detailed
head. The net amount only should be debted to the head.
II. In all other cases the amount recovered should be entered initially in the
accounts as an item of receipt under “recoveries of service payment” but
in the account rendered to accountant general the amount should appear
as minus entry under the sub-head to which it was originally debted.
2. If made after the close of the year in the accounts of which payment was included
the amount should be credited in the accounts of miscellaneous revenue.
Other recoveries:- Rule 2.54:- Other recoveries from the pay bills etc should be recorded
as pertaining to provident fund, income tax etc. as the case may be but such recoveries
are creditable to central Govt. Such as deduction on account of income tax, postal
insurance etc, should be classified under the head “book transfer central” as the case
may be . In the same way any recovery creditable to the another state Govt. should be
credited to the head book transfer.

FOREST DEPOSITS:- Earnest money deposits which are paid under the
rules of Govt. by the contractors or purchasers of forest produce directed into the
treasury or sub-treasury should be treated as revenue deposits and not as forest
remittances. Such deposits should not appear in the accounts of officers of the
department. Similarly earnest money deposits which are received initially by a forest
officer but remitted subsequently to the treasury and as such should be credited as
revenue deposits.
FOREST CASH BOOK (Rule 2.56):- Every officer who is authorized to revenue
receives or disburses Govt. money should keep an account in the forms of cash book.
33

Form FA-01 in which he should enter not only all money transactions but also book
transfer permissible under Art-260.
Rule-2.57: Only transactions connected with the public service and no other should be
shown in cash book. Sufficient details should be given in columns . particulars to show
the main points of each transaction being ascertain ready without reference to the
detailed vouchers. All items of other revenue must be detailed below. The forest from
which revenue is received the person who pays it & the articles & the quantities removed
should be distinctly stated in that column whenever the information is available. The
classification of receipts and charge should be given in the column, “head of services” in
accordance with the proper account classification.
Rule-2.58: When a cheque is drawn in favor of self or in order to replenish the cash chest
the amount of it should be entered at once as receipt. This entry must not be delayed until
the money has been received after the cheque has been cashed at the treasury.
Rule 2.59; A cheque drawn in order to be paid away should be entered simultaneously
on the both sides of the cash book. Once as a receipt from the treasury and again as a
payment to payee concern. The number and distinguishing letter of the cheque being
specifies in both the entries cheque number and letter number should be entered in the
cash book.
Rule 2.60 ; Similarly all book transfers, for instance transactions in which no actual
payment or receipt of cash is involved should be entered, simultaneously on both sides of
cash book, the credit or debt to ‘book transfer’ appearing on one side and on equivalent
debt to an expenditure head or credit to a revenue on other side.
Rule 2.61: Pay and allowances of forest officers and their establishments which are paid
by cheque or out of cash obtained from the treasury should be entered in the cash book
under the head establishment without further details. These entries are supported by bills
of vouchers.

Q. Cancelled/ lost/ lapsed cheques ( 261,262 ):-

If a cheque which has been drawn and entered in the cash book has to be cancelled
subsequently. The amount of it should be accounted for on the creditor’s side as
cancelled cheque. The cancelled cheque being treated as a voucher. Simultaneously an
entry should be made on debtor’s side as below:
34

A) if the cancelled cheque is replaced immediately by a fresh cheque, the fresh cheque
should be shown as forest remittance. The number and date of cheque in lieu of which it
is drawn being quoted in the entry.
B) If the cancelled cheque is not replaced immediately, the expenditure in payment of
which it was drawn should be written back by making an entry of the cancelled cheque on
debtors side as for as cash recovery of service payment.
Rule 263: A lost cheque should be treated in all respects like a cancelled cheque.
The treasury certificate of nonpayment being regarded as a voucher in respect of the
entry of cancellation in the creditor’s side of the cash book.
A lapsed cheque or time expired cheque if renewed should be treated as a
cancelled cheque and the fresh cheque in its place entered in the cash book in the same
manner which stands already explained to you as per art-262.

Closing and balancing of cash book:-

Cash book should be closed and balanced monthly. The account balance at the close of
the month should be checked with the actual cash balance in hand verified by actual
counting. If any excess or deficiency is found, it should be entered at once as such in the
cash book on creditor’s side or debtor’s side as the case may be.
Art 266:- Divisional officers and others who render account to the accountant general
should close their books on the last working day of each month but sub-ordinate offices
should do on 27th or earlier date as may be necessary in order to ensure that their
accounts reach to the offices in whose account they are to be included by last day of the
month. For the month of march the divisional offices should keep open his own account
until the receipt of such accounts of the sub ordinate offices will be closed by 31 st of
march.
Art 267:- Register of cheques drawn :- a monthly register of cheques drawn in all
treasuries with which the drawing officers are placed in account should be kept in form
FA-2
Muster Rolls (works accounts):- for works executed by labourers whether paid by the
day or otherwise a muster roll should be kept in such a form and in accordance with such
methods as may be prescribed by Govt. after consultation with A.G.
35

Measurement Books:- Art-269:- For works done or otherwise then on a lump sum
contract or for supplies made by the contractor a measurement book should be kept in
such a form in accordance with such methods as may be prescribed by the Govt. in
consultation with A.G.
Register of works:-Art-270:- A detailed record of expenditure relating to each
sanctioned work should be kept in register in form FA-2.
Stores account:- An account of stores such as building material , small stores, etc which
may be held in stock for general purposes as distinct from material purchased for a
specific works should be kept in such a form as govt. may determine in consultation with
A.G.
Contractors and disbursers ledger:- A ledger should be maintained in divisional
offices in form FA-4 for all accounts with disbursers and contractors. On the debit side
should be entered all the payments made to them and on the credit side the amount of
bills passed to be recorded and all sums repaid by them in cash.
Only one account should be opened with each disburser but in case of contractors a
separate account should be kept with each person in respect of each work.
Art-274:- Each item entered in the cash book under forest advance or works advance
should be posted at once with ledger and when the work is accepted by the authorities as
having been done by a contractor or any account supported by treasury vouchers is
accepted from a disburser. The amount carried by work done or expenditure incurred
should be set off against the amount due from the contractor or disburser as shown in the
account in ledger. The ledger account should thus be a running account with each
contractor and disburser from which the amount due by him or from him can always be
ascertained.
Art-275:- The accounts with each contractor and disburser should be balanced on the
last day of each month on which the transactions take place.
Art-276:- The pages of the ledger should be numbered/machine numbered and the
accounts appeared in the ledger should be indexed. Each account in the ledger should be
assigned a number which will be live till the account is finally closed. These numbers
should be also entered in the next ledger also.
 36

The detailed account of the withdrawals and remittances made during a particular month
by the disbursing officer is required to be rendered to the A.G by 8 th of the month
following the month to which the transactions pertain.
All the transactions in respect of receipt and expenditure made by the DDO are to be
verified with the books of controlling officer and send to A.G along with plus and minus
statement.
Monthly cash account, classified abstract of revenue and expenditure, schedule of
remittances to treasuries, schedule of transactions with other Govts., Schedule of
transactions with post and telegraphs, schedule of transactions with defence, abstract of
contractors/disbursers ledger in original, a copy of monthly register of cheques drawn
should be submitted to A.G. The account should be accompanied by all vouchers which
are required to be destroyed. The entry in the accounts in respect of payments made on
muster rolls should be supported by a voucher with brief particulars of work done by a
labourer and a certificate should be got recorded by the distinguishing officer to the
effect that the labourers were actually employed on work and paid on muster sheets.
The divisional officer or the DDO should certify on the monthly cash account that:-
1. The lump sum amount agrees with the details in the cash book and with also the
subsidiary records.
2. Cash recoveries of service payments noted in the cash book but not shown in the
cash account as separate item.
3. The refund of forest revenue appeared in the cash book but taken in deduction
from the revenue in the cash account.

Deposits:-
In addition to the revenue of the Govt. sometimes the Govt. Officers are required under
rules to handle cash which does not belong to Govt. But even then the cash passes
through the hands of the G/S in their official capacity and needs to be paid back to the
concerned from whom received i.e. private persons, local bodies etc. e.g. during elections
the contesting candidates are required to pay security money so that a candidate who is
not able to get minimum requisite votes has to risk of losing his security money. In case a
 37

candidate wins or who gets the required number of votes are entitled to get their security
back so it is clear that the security money does not belong to Govt. But needs to be
refunded back to the concerned candidate.
The money shall therefore be kept under deposit and afterwards it is
either refunded or forfeited.
Classes of the deposits:-
1. Revenue deposits.
2. Civil and criminal court deposits.
3. Personal deposits.
4. Public works deposits.
5. Trust interest funds.
6. Deposits for works to be done for public bodies.
7. Unclaimed provident fund deposits.
8. Deposits of educational institutions.
9. Deposits in connection with elections.
10. Deposits of local funds.

1- Revenue deposits:- Decree money, witness money paid in advance, security

money paid by cashiers, store keepers etc, diet expenses of civil prisoners, Private money
of Jail prisoners, earnest money of tenderers, sale proceeds of unclaimed impounded
cattle, sale proceeds of unclaimed properties,. These all can safely be put in revenue
deposit in treasury under the authority of concerned DDO.
Repayment in fund revenue deposits:- The amount of deposit is shown by the
T.O. in his books as the deposit of a particular person through the authority of DDO.
When the amount is to be repaid the DDO prepares a refund bill and authorizes the
concerned person to receive the payment from concerned person. The DDO will keep a
note to this effect on the original records of his office so as to avoid double payment. The
repayment claim is prepared on the form FC-34 by the DDO. While making the payment
the T.O. also keeps the note of the refund against the relevant column in the register so
that no double payment is made. The refund bill claim can be paid by the treasury up to 3
months after the issuance of refund bill by DDO. After that it needs to be revalidated.
38

After that the T.O. sends these paid vouchers to A.G. with the 1 st list and 2nd list of
payments.
Repayment of Earnest money of forest deposit is made on original receipt
itself without preparing the refund bill. While in case of other DDOs the treasury officer
makes the refund on presentation of refund bill by the concerned DDO. Thereby
authenticating the Treasury officer to make the refund of the amount to the concerned
payee. As regards the refund of deposits of mental patients of the jails. These are
refunded by the superintendent of jails out of his permanent advance, subsequently he
gets his permanent advance recouped by preparing a refund bill form and encash from
concerned treasury. If the refund is more than permanent advance, in that case a refund
bill form is got to be prepared by the concerned DDO and make the payment to the
payee.
2. Civil and criminal court deposits:- the detailed account of the civil and criminal court
deposits that is the information regarding the name of person who deposits money, date
of receipt, Total amount received, purpose and the date of payment are maintained by the
concerned courts. The treasury has to keep no such details. The courts draw and pay
lump sum amount to the treasury . The courts merely keep the amount with the treasury
without the details of the gross amount to be credited in their personal ledger and make
payment from the treasury to the concerned by debit to this personal account in the
ledger. The personal ledger and the corresponding accounts and returns shall be kept by
the treasury in the form of prescribed form for personal deposits. The T.O. is supposed to
send vouchers and payment orders of the courts to A.G. along with the account , enabling
the A.G. to conduct the audit of all the payments made by the treasury and DDO under
this class of deposits.
3. Personal deposits:- The bank accounts are kept for certain classes of deposit
transactions. The payment on account of works and attached estates under the
management of Govt. for which it is necessary to treat each disbursement as made
against the particular receipt. The account kept for them in the treasury is of the nature
of the bank deposit account. These accounts are called personal accounts. Wherever the
transactions are conducted in this case of account, it is imperative for the administration
of the personal ledger account to complete a detailed account of the transactions every
39

month and forward the same to the A.G. office duly supported by the necessary vouchers
so as to enable the A.G. office to incorporate these transactions in the regular account
after audit.
4. Deposits for works to be done for local public bodies etc:- When some building work
etc is required to be done by a local body through the agency of PWD or any other
department. Local bodies pay money in advance to executing agency in the shape of
deposits and payments for the work executed are made from time to time out of the said
deposit. Similarly the amount received from local body on whose behalf the work is to be
executed is paid into the treasury through the white DC bill or through cheques. These
cheques are sent to the treasury by the executing agency for affording credit to the
relevant deposit head.
5. Unclaimed provident fund deposits:- Unclaimed amount of missing or absconding or
deceased subsistence of GPf & CPF are transferred as deposit under this head and if
the claimant does not turn up within 3 complete years the amount stands lapsed and is
not credited to the revenue of the state.
[Link] of fee of non Govt. educational institutions:- where ever a Govt. servant is
permitted to work with some non govt body or private persons for particular time or full
time for a month or so it may be prescribed by the govt that the amount of fee paid by the
private body be shared between the govt and the govt servant in a ratio specified by the
govt. when the ratio is decided approximately and not exactly the amount of fee shall be
deposited by private body in treasury as deposits. And when the ratio is decided the
amount is paid to the govt servant and to the govt accordingly. The detailed account shall
be maintained by the treasury in the same way as is maintained in case of revenue
deposits.
7. Deposits of local funds:- Deposit account of local fund deposits are maintained by
treasury in the same way as they maintain civil and criminal court deposits it is ensured
at the time of making payments that it should not exceed the available amount at the time
of payment.
8. Lapsed deposits:- If the deposits are not claimed within a prescribed time limit these
lapse to the govt. The statement of these lapsed deposits are prepared annually by the
treasury officer. The statement is to be sent to the accountant general after 31th of March
 40

in Form FC-35. So far as the revenue deposits and civil and criminal court deposits are
concerned these details are also prepared by the concern DDO these statements are
called annual lapsed statements of deposit. As a matter of rule deposits lapse after 3
complete years. The personal deposit does not lapse and remain current for veer unless
these deposits are closed in consultation with the concerned officer who controlled these
deposits. In the following cases the deposits of petty amount lapses prior to three years:
i. if the amount is Rs.5/= or less after one complete financial year.
ii. If the amount of deposit is more than Rs. 5/= but the deposit is partly repaid, leaving a
balance of Rs. 5/= or less, the balance should lapse with the close of financial year in
which the payment is made.
8. Public works deposit:- The record in respect of transactions of public work
transactions should be maintained in the Divisional office on a register in same form as
in case of suspense register in form-67. This register shows month by month the total
receipts and adjustments and closing balance of each separate deposit item. But in
respect of deposit for work to be done which are accounted for in detail in the schedule of
deposit work, Form-65. A single entry for all such deposits will suffice.

Q. Forest cash book..

1.7.07. Opening Balance= 750
01.07.07 Cheque for chest= 1350
1/7 Paid establishment/Salary.=1100
1/7 Paid to forest officer salary by cheque=475
1/7 Gp fund recoveries= 200
2/7 Advance to contractor A by cheque= 300
4/7 Advance to forest ranger= 270
4/7 sundry office expenses= 180
6/7 Advance to contractor B=250
7/7 Cheque issued on march 2007 cancelled=180
11/7 paid by cheque to contractor C=570
13/7 Recovery for Head Clerk= 10
41

!4/7 Amount deposited in treasury as earnest money deposited by contractor A=500

Divisional cash book of ------------ for the month of ------------------.

RECEIPTS
PAYMENTS
Date of No. From amount classification Date of No. of To Cash Bank Classification
receipt of whom payme vouche whom
vouc received nt r or paid
her receipt
or
recei
pt
No. Amount
of
cheq
ue
1.7,07 Op. 750 1.7.07 Employ 1100 Establishment/
balance ees salary
1.7.07 Forest 475
1.7.07 Treasury 1350 Cash for chest officer
/ bank
1.7.07 Subscrib 200 GP fund 2.7.07 Contrac 300 Advance by
er recovery tor A cheque

7.7.07 180 Cancelled 4.7.07 Forest 270 Advance

cheque ranger

13.7.07 Head 10 Recovery of 4.7.07 Office 180 Sundry office

Clerk leave salary expense expenses

14.7.07 Cont. A 500 Earnest money 6.7.07 Contrac 250 Advance to

tor B contractor B

11.7.07 570 Full settlement

14.7,07 Contrac 500 Earnest money

tor C Of Cont. A.

Treasur
y
 42

TENDER

Q. A single tender system may be adopted in case of a small order or when the articles
required are of proprietary character & competition of rates is not considered
necessarily. For this purpose the small order means order of a petty sum of amount. The
purchasing officer may consider it advantageous to purchase articles from any firm with
which DGS & D has already entered into a rate or running contract for the supply of
such articles without calling for tenders running contract after calling for tenders.
Tenders may be invited
1. By advertisements ( open tender )
1. By direct invitation to a limited number of firms ( limited tender)
2. By simple tender system.
[Link] tender system:- It is invitation to tender by public advertisement. It shall be used
by general rules & be adopted whenever estimated value or order is to be placed is Rs.
500/= or more. In such case the purchasing officer should arrange for necessary
advertisement & publish these advertisements in principal newspapers etc through
director information. However the communications regarding effecting of purchases etc
can be made to reputed dealers & contractors. Through the advertisements the tenders
are invited in sealed covers. With indicating the place where the tenders should be
submitted and also the time for submission of tenders should distinctly be notified.. the
date and time on which the tenders will be opened should also be mentioned. If the
invitation to tenders involves a large contract , at least one month’s time from the date of
advertisement should be allowed for submission of tenders. The tender document in
certain cases can be had from the officer inviting tenders against the cost which is to be
remitted later into treasury. The tenderer should be required to furnish the cash deposit
as an earnest money equivalent to 2% of the estimated cost.
43

Opening of tender:- The tender opening committed open the tenders on the specified date
and time in pursuance of tenders if the desire or their authorized representatives. The
officers opening the tenders should sign these tenders with dated initials. All the
corrections and over writings in the offers should also be attested. The tenders are
marked like T1/5, T2/5, T3/5, T4/5, T5/5 etc. if there is any ambiguity in rates granted by
the tenderer in words and figures, this must be separately indicated in each page of
tender. If the tenderer has omitted writing of rates in words and figures , a note of this
has necessarily to be taken by the tender opening committee.

Conditions of tender and contract:-

1. The quotations must be in sealed envelopes.
2. Rate should not be altered and rates should be written in words as well as in
figures.
3. The contract shall not assign or sublet his contract or any part of it to any
other agency. The stores supplied shall be of the best quality to the
satisfaction, trade mark as laid down for the tenderers and should be strictly
in accordance with the standard sample. In case any material of which these
are not approved supplies. The supply should be of best quality. The decision
of the accepting authority in this case shall be final. The rejected material if
any shall be replaced by the tenderer.
The purchasing officer or his authorized representatives shall have access to the supplies
premises and shall have the authority to inspect and examine the material. The tenderer
shall be responsible for proper packing so as to avoid damage under normal conditions
of transport by sea, rail, road or air. In the event of any loss, damage, breakage or
leakage or any shortage the tenderer shall be liable to make good such loss. All the rates
quoted must be quoted for the destinations and should include all taxes. If the supplies
are not up to the mark or up to the satisfaction of the Govt. the contract can be cancelled
at any time. The tenderer should sign the tender form at every page. The tender must be
accompanied with an earnest money. The amount should be deposited in either of the
following forms;
44

1. Treasury challan.
2. Fixed deposit receipt of any book etc.
The earnest money will be refunded to unsuccessful tenderer with in one month of the
final acceptance of successful tenderer. In case of successful tenderers this amount shall
be treated as security deposit. The successful tenderers will have to execute an agreement
in the prescribed form and deposit security for the due performance of the contract. The
security money will be refunded after two months from the date of completion of agreed
contract. The expenses on account of stamping and other formalities of agreement shall
be paid by the supplier and tenderer and the purchasing officer shall be furnished free of
charges with one copy of stamped counter part of the agreement . the goods will be
delivered at the destination godown in perfect conditions. The supplier may if he desire
ensure the value of goods against loss of theft, destruction and damages by flood and
undue exposure to weather etc. These charges have to be borrowed by supplier. No
advance payment will be made except in rare cases for which sufficient reasons will have
to be recorded. The payment shall be made by the purchaser where whole quality of
goods have been delivered and inspected and accepted by purchasing officer and
certificate to this effect is recorded by the purchasing officer. The Govt. reserves the right
to accept any tender not necessarily the lowest tender and reject any tender not
necessarily the lowest tender and reject any tender without assigning any reason. The
order for supplies of goods can be placed for the whole quality and the part thereof. The
legal proceedings if arise between the Govt. and contractor shall have to be lodged in
court situated in the state of J & K . no conditional tender will be accepted.

LIMITED TENDER:- it means the direct invitation to a limited number of firms instead
of invitation to tender by public advertisement. The limited tender system ordinarily be
adopted whenever the estimated value of order is less than Rs. 500/- when the indenting
officers certifies that the demand is sought that any additional expenditure is involved in
elimination of open competition must be incurred in order to avoid necessary delay. In
45

every such case the indenting officer must place on record, the nature of urgency and the
reasons why the demand could not be anticipated for the purpose of limiting tender and
single tender proceedings, the purchasing officer should maintain on list of firms of
known reliability which have satisfied him that they posses necessary equipment and
facilities for the supply of the stores which they offer to supply.

Security for the fulfillment of the contract:- Whenever a tenderer or a firm entered into
a contract with the Govt. should besides earnest money give a security for the fulfillment
of the contract the actual amount of the security deposit to be obtained from the firm is
ranging from 5% to 10% of the amount of the contract value. This leads to be decided at
the level of contracting authority. The contracting authority may allow the amount of
earnest money to be treated as part of the security deposit and may demand so much of
security as together with earnest money equals to the total of required amount.

Agreement for supply of stores:- When a tender is accepted for supply of stores, the
person whose tender has been accepted should be required to execute an agreement in
form FC-31 (D). In regard to the supplies of stores a fixed price for each article is
essential and no agreement should provide for a price fluctuation or variation. No order
should be given for any stores without obtaining at least a written agreement from the
supplies. Agreement relating to supply of stores are liable to stamp duty and there
registration is essential.

Receipt Of Stores:- All stores should be examined, counted, measured or weighed as the
case maybe when delivery is taken and should be taken by a responsible representatives
who should see and satisfy themselves regarding quantity, quality etc and record its
certificate to the effect. The G/S receiving stores articles should give a certificate to the
effect that he has actually received the material and has made entry to the effect in the
relevant stock register. At the time of making payment it should be seen in variably that
the rates paid are not in excess of those entered in the contract or agreement made for
the supply of stores and suitable note of payment is recorded against indents and invoices
concerned to prevent double payment.
46

Custody of accounts of stores:- The head of the officer or any other officer who is
responsible for receipt and custody of the store items should take sufficient care for its
safe custody and should keep all material in good condition. He should also take steps for
protecting the store items from loss, damage or destruction. Under rules he is required to
maintain detailed account and inventories and also prepare correct returns in respect of
the store items which are under his charge. This is with a view to prevent losses through
fraud/accident and otherwise to make it possible at any time to check the actual balances
with the book balances and the payment made to the supplier. In order to achieve this
subject, it is important that all the quantities received or issued from the stores are
entered into the stock accounts strictly in accordance with the relevant codal rules and
procedures. The accounts must be maintained in such a way so that it is possible at any
time to check the actual balance with the book balances.
When a G/S in charge of stores is transferred, the charge should be handover to
the successor against a proper receipt. A joint transfer report should be submitted,
reflecting therein all the store items and needs to be submitted to his immediate officer. In
case there is any deficiency or defect in the store items the relieving Govt. servant should
immediately bring the fact to the notice of his officer. In case he fails to do the
responsibility, in case of storage defect etc is shouldered by him.

Payment for stores:- No payment for stores shall be made to the supplier by the
authorities until the delivery of the items have been taken and checked in respect of
quality and quantity. In case of exceptional cases advance payment may be made under
the following circumstances:
1. Advance payment in respect of part of the cost of the consignment may be made
when costly stores are to be recovered from a distant place and with the result
delay in the payment is anticipated.
2. The firm or contractor to whom the advance payment is paid should be of well
known standard.
47

3. An agreement is required under rules to be obtained from the firm or contractor

before an advance payment is made so as to secure the interests of the Govt.
against risk of any loss etc.

Issue of stores:- When materials are issued from the stock for departmental
use and sale etc. The G/S in charge of stores should see and satisfy himself that an indent
in proper form has been made by an authorized person. He is required to examine it
carefully with reference to instructions of authority and sign it. He should then prepare
and sign the form of invoice attached to the indent according to the supply actually
made. The indent should be returned to requesting Govt. office for appending his
signatures when materials are issued & written acknowledgement should be obtained
from the person who has been authorized to take the delivery. In case of material is
issued to a contractor, the cost of which is recoverable from him. The acknowledgement
should give the full particulars of the material issued including the recovery rates and the
total value chargeable to the contractor.

Dead Stock:- An inventory regarding dead stock such as plant and

machinery/furniture & fixture and equipment should be maintained as per prescribed
formats by the Govt.
Verification of stores:- A physical verification of stores must be made at least once in a
year. In making such verifications, the following guidelines are required to be followed.
1. Verification must be made in purchase of the G/S responsible for the custody of
stores or his agent.
2. Before conducting the verification, it should be seen whether the stock register
and other connected records are up to date.
3. The officer conducting verification should obtain a stock verification lists in
triplicate of the stores indicating there in the, serial no., location, part no.,
nomenclature etc of each article duly signed by the store keeper and HOD.
4. The officer verifying the stores should record quantity, weight or number as the
case may be of the stores physically verified by the list prepared after the
verification should be signed by the store verifier & store keeper or his agent.
48

5. When the verification is completed, two copies of the store verification lists
should be sent by the store verifier to the store keeper who in turn will enter the
book balances recorded in his books and the excesses and shortages as the case
may be are also mentioned. The balance should be checked by the verifying
officer and should record a certificate as under;
“ that the book balances as recorded in the relevant columns have been checked by me
with the stock register and found correct”.
One copy of the list should be forwarded by the store keeper to the head of the office
within two days of completion of stock taken.
6. All the discrepencies noticed must be properly investigated and brought to the
account accordingly.
7. Shortages & damages should be reported to the competent authority. The reasons
of shortages should be investigated in case the responsibility fixed. The value of
the shortage should be recovered from the person at fault otherwise the same
should be written off with the sanction of the competent authority concerned.
8. Unserviceable stores must be reported to the authority competent to write off the
loss.
9. The verifying officer should on completion of the verification of the stock give a
certificate to the head of the office or to the HOD as under:
“ certified that all the items in different houses have actually been verified by the
undersigned.”
The verification should be made by a responsible Govt. servant fully conversant with the
classification , specification and nomenclature etc.
49

Very Important questions of Financial Code……..

Q.1. What are the duties and responsibilities of a DDO in relation to cash or Store
coming under his direct or indirect charge.
Q.2. As a rule Govt. receipts of money have to be deposited immediately into the treasury
and not utilized to meet Govt. Expenditure. Specify exceptions to the rule.
[Link] instructions have been laid down in the rules for maintenance of cash book.
How it is maintained and what purpose does it serve.
Q.4. What are the canons of financial proprietary to be observed while spending Govt.
Money.
Q.5. What instructions have been laid down in the rules for preparation of bills to be
drawn from treasury.
Q.6. What procedures have been laid down in the rules for dealing with the cases of
defalcation and losses of Govt. Money in states.
Q.7. Procedures for drawal of money on account of medical claims within and outside J
& K state.
Q.8. What instructions have been laid down in the rules for preparation of establishment
pay bills.
Q.9. What do you mean by term contingent charge or contingencies. How many classes
of contingency are there. Write short notes on each. Giving examples.
Q.10. What is a permanent advance and how it is recouped.
Q.11. Procedure for effecting purchase of stocks.
Q.12. What do you understand by deposit. What are various classes of deposit.
Q.13. Write short notes on
1. Consolidated fund 2. Contingency fund and 3. Public account.
Q.14. Write short notes on
1. LPC 2. Pay and TA acquittance roll. 3. Annual establishment report. 4.
Administrative approval 5. Cash 6. Book transfer 7. Revenue and receipt of the Govt.
 50

Q.15. How are cancelled or lapsed or lost cheques dealt with in a forest cash book.

Q.16. What are the different record books recorded in treasury .

Some important points to be remembered:-
In forest cash book the following things should be mentioned:-
 The forest from which the revenue is received.
 The person who pays the money.
 The classification of receipts and charges should be given in the column .
 A cheque drawn in favour of self to replenish the cash chest should at once be entered as
receipt. We must not wait for the actual realization of the proceeds of cheque from the
treasury.
 A cheque drawn on account of payment, this should be simultaneously entered on the
both sides of the cash book showing receipt of money from the treasury and payment
made to the concerned payee.
 All book transfers that is the transaction in which no actual payment or receipt of cash
takes place should be entered simultaneously on both sides of cash book. The credit or
debit to “book transfers” appearing on one side and equivalent debit to an expenditure
head or credit to the revenue head on another side.
 Pay and allowances of the forest officers and their establishment which are paid by
cheques or out of cash from the treasury should be entered in the cash book under the
head establishment without further details. The entries must be supported by bills and
vouchers.
 Cancelled, lost or lapsed cheques :- if a cheque which has been drawn and entered in
the cash book requires to be cancelled subsequently the amount of this cheque should be
accounted for on the creditor’s side as cancelled cheque. This cancelled cheque being
treated as a voucher now should be entered on debtors side as mentioned below:-
 If a cancelled cheque is replaced by fresh cheque, the fresh cheque should be shown as
forest remittance. The number & date of the cheque in lieu of which it has been issued is
also shown in entry.
 51

 If the cancelled cheque is not replaced, the expenditure of this cheque in terms of which
it was drawn should be written back by making an entry of the cancelled cheque on the
debtor’s side as for as cash recovery of service paid.
 A lost cheque should be treated in all respects as cancelled cheque. The treasury
certificate of nonpayment being treated as voucher in support of the entry of cancellation
in the creditor’s side of cash book.
 A lapsed or time expired cheque , if renewed should be treated as cancelled cheque and
fresh cheque issued in its place entered in the cash book.
 The cash book should be closed & balanced monthly. The balances at the close of the
month should be checked with the actual cash in hand and it should be verified also. If
any excess or shortage is found, it should be entered at once in the cash book in the
debtors or creditors side. The divisional forest officers render account to the A.G. after
closing their account books. They receive accounts from sub ordinate officers during the
last week of the month and include them in the account.
 Major & minor heads.;
01 to 1999-------- receipt heads( tax, revenue etc)
2000 to 3999 --------- expenditure heads ( adminstrative,social ser,agr,etc)
4000 to 5999 -------- capital expenditure
6000 to 7999 ------- loans & advances.
8000 to 9999 ------- public accounts ( GP fund etc)
52

J & K
TREASURY
CODE.
53

Q. Define the term “Treasury” and what are its functions . what are its relations with
the Accountant General and J & K Bank?
Ans. Treasury means any treasury of J & K state like Sadder Treasuries, additional
treasuries in Srinagar and Jammu cities, District Treasuries, Muffasil treasuries and
other sub-treasuries.
A Treasury is mainly charged with the functions of receiving moneys standing in the
consolidated fund, the contingency fund and the public account of the state Govt. and
making payments there from. Treasury maintains the initial accounts of all such receipts
and payments.
However receipts realized in civil departments like public works, forest and Govt.
commercial undertaking are paid into the try in limp and are accounted for merely as
receipt of those departments. Similarly those departmental offices are authorized to
withdraw money in lump from the treasury. In such cases, the initial accounts of the
transactions relating to receipts and payments are maintained by the departmental
offices themselves and not by the treasury.
Almost all the treasuries of J & K state are banking treasuries. The cash business of
these treasuries is conducted by the J and K bank. Banks receive and make payments on
behalf of treasuries after authorization from the concerned treasury.
 54

During the last few years various instructions have been issued by J & K Govt. which
have been implemented by all treasuries in order to avoid the chances of embezzlement
or misappropriation of Govt. money etc. at present all payments to various payees
authorized by treasuries are made by credit to the payees account. Of the concerned
payee even pension is also paid by credit to payees account. The DDO’s receive cash for
chest by credit to their official account who receive the same against bank cheque.
There are so many instances which took place in the recent past when some G.P fund
and SLI bills were fraudulently drawn from J & K bank branches after their
authorization by concerned treasuries. In most of the cases the persons responsible for
making fraudulent drawals could paid to concert be detected because payment thereof
were received by them in cash. Now such a question does not arise because all payments
at present including G.P. fund, SLI bills are paid to concerned by credit to their payees
account. E.g. such fraudulent persons now can not dare to involve themselves in such
embezzlement cases because they know that now they can easily be detected.
Relation of treasuries with ACCOUNTANT GENERAL. Accountant General is the
heads of the office of accounts and audit who maintains accounts of J and K state and
when used in relation to a treasury, the A.G is the head of an office of accounts to whom
the accounts of the treasury are rendered. So all the treasuries render their monthly
accounts to the accountant General for further appropriation.
RELATION OF TREASURY WITH J & K BANK. Bank when used in relation to
treasuries will mean the J & K bank to which the cash business of all treasuries in the
state has been entrusted. Branches of J & K bank receive and make payments by credit to
payees accounts on behalf of treasuries.

Q. Define the terms:-

1. Banking and Non banking treasury:-Banking treasury means a treasury, the cash
business of which is conducted by the J & K Bank. All treasuries in the state at present
are Banking treasuries.
Non Banking treasury means a treasury other than banking treasury.
1. Cash :- it includes legal tender coins, currency and bank notes, cheques payable
on demand, Reserve bank/Govt. drafts, demand drafts and also revenue stamps.
 55

2. Cheque:- means a written order addressed by a person called the “DRAWER

“to a treasury to pay a specified sum of money to himself or a third party known as
“PAYEE” and includes a demand draft drawn on any specified bank.
3. Consolidated fund of the state:- It means the fund into which all revenues and
other receipts like Taxes, Grants-in-aid from Govt. of India, money borrowed from GOI
or bank or public and money received by the Govt. in repayment of loans etc are credited
and from which expenditure of the state is met. Expenditure includes expenditure for
collection of taxes, maintenance of law and order, salaries and other expenses incurred
by various departments/ offices of Govt. repayment together with interest of moneys
borrowed by Govt. and pension payments . Payment of salaries etc to Governor, his staff
judges, ministers, MLA’s etc . Money lent by Govt. to local bodies , Government
employees, public etc are met from this fund.
4. Public account of the state:- All such receipts and expenditure which do not fall
under consolidated fund of the state and in which the Govt. acts as a banker in the sense
that all moneys received by Govt. have to be repaid sooner or later and that moneys paid
by Govt. are recovered in the long or short run. Public account includes receipts and
disbursements of [Link], [Link] and SLI. Receipts collected in J & K on behalf of
central or other state Govts. Railways, posts and telegraphs or defence departments and
their payment to concerned.
5. Contingency fund of the state:- No expenditure can be incurred by the Govt.
from the consolidated fund of the state with out the prior approval of the legislature .
however in order to avoid delay for meeting unforeseen expenditure on unforeseen
occasions like floods, earthquakes, etc. when there will be no time to summon legislature
for its approval to incur expenditure, the constitution has created a contingency fund in
which is placed a fixed sum of money ass may be approved by the legislature. This sum is
placed at the disposal of Governor to allow advances from this fund for meeting
unforeseen expenditure of the Govt. in due course when this unforeseen expenditure is
approved by the legislature , the same is drawn from the consolidated fund and paid into
the contingency fund of the state thereby recouping it. this fund is a sort of permanent
advance with the governor.
 56

6. Revenue of the state/Receipts of Govt.:- It means and includes all moneys

received by a Govt. servant on behalf of the Govt. It does not only include the proceeds of
taxation and the yield of ordinary Revenue but also capital receipt such as the proceeds
of borrowing operations and such receipts of banking and deposit nature as by virtue of
any general/special order of the Govt. have to be held in the custody of the Govt.
7. Local fund:- It means the revenue administration by bodies which by law or rule
having the force of law come under the control of Govt. The transactions of local funds
are as such not included in the [Link]. Local funds are of Municipalities, Town
areas, Notified areas, and village panchayats etc. However their cash balance may be
deposited with the Govt. under rules and classified under the account head “ deposit of
local funds” in the public account of the state. The amount paid by the local funds into
treasuries is credited to this account head and amount drawn by local bodies are debited
to this head.

Q. What are the duties and responsibilities of a treasury officer?

Ans. The important duties and responsibilities of a treasury officer are as under:-
1. The treasury officer is responsible for observance of all prescribed treasury rules
relating to receipts and payment of money. He is also responsible for preparation and
punctual submission of accounts to concerned quarters.
2. The treasury officer is required to satisfy himself of the accuracy of every claim before
authorizing payment and must follow strictly the rules prescribed for his guidance as he
will be held personally responsible for all erroneous or irregular payments.
3. The treasury officer must see that all claims are “payees account” and that claims
regarding cash for chest are creditable to the official accounts of DDO.
4. He must see that the claims submitted for payment at treasuries are not time barred are
within allotment of funds available, six tier classification is recorded, signature of DDO
exist, amount claimed is written in words and figures under the signature of DDO, claim
is entered in the drawal register, sanction of the Govt. in case of advance exist,
necessary voucher, orders, work/supply orders etc are enclosed with the claim etc.
5. In case of claim by cheque, the treasury officer must see that the cheque is presented
within three months from the date of issue of this cheque . Cheque is from the cheque
 57

book issued by treasury to the concerned DDO. It bears the real of treasury and real and
signature of DDO concerned. The amount claimed in the cheque is within funds available
under the concerned sub-head of account etc.
6. The treasury officer shall attend to all objections and orders communicated to him by the
A.G. or Director General audit and inspections organization of finance department by
letter, audit memoranda within a fortnight or send letters explaining the cause of delay.
7. He should see that due attention is given to the instructions issued from the finance
department and the A.G. or Director General Audit and Inspection.
8. He shall send immediate notice followed by detailed report of any embezzlement or loss
in the treasury to the finance department and to the A.G. or Director General audit and
inspection as per prescribed rules of financial code Vol-I.
9. He is required to any amount disallowed by the A.G/Director General audit and
inspection as unauthorized promptly and listening to any protest or objection and refuse
to pay in future any such amount until the A.G/Director General Audit & Inspection
withdraw the objection.
10. He is to make no payment under any circumstances on a voucher or order signed by a
clerk instead of DDO, although in absence of the later, the clerk in habit of signing
letters for him nor may he pay any money on a voucher or order signed only with a
stamp.
11. He is required to prohibit erasures in any account register or schedules or in the cash
book. He should verify and initial every correction in them.
Q. Briefly describe the procedures at treasuries (Banking Treasuries) in receiving
money in cash and by cheque and granting receipt?
Ans. The Procedure at Treasuries in receiving money on Govt. Account and granting
receipt is given as under:-
One who has to pay money into the treasury on Govt. account shall present with it a
challan in form F.C-2 or in any other different form in respect of same departments. The
form shall contain full information in respect of name of person tendering money, on
whose behalf the money is tendered, the nature of remittance, amount to be remitted in
words and figures, the head of account to which classified and Seal and signature of the
remitter.
 58

Tendering of money into Banking Treasury:-

a. In cash:- In terms of SRO-479 dated 06-12-1999, one who tenders money into treasury in
cash on Govt. account shall present a challan in duplicate. The challan shall be received
by an auditor in the treasury who often checking all the particulars recorded in the
challan and enter it into a separate register and serial number of the register shall then
be entered in both the copies of challans. The said auditor shall then pass on the same
challan to the concerned in charge auditor.
After checking the classification and other details, the concerned auditor shall affix the
treasury seal on the challan requesting the Manager J and K bank to receive the amount.
Both the copies of challan shall be handed over to the concerned remitter who shall
present the same before the cashier of the bank. The cashier after receiving the amount
shall pass on the same to the authorized officer of the Bank. Who shall sign the same in
token of having received the amount by the bank after satisfying himself that the entry has
been made in the scroll. The bank shall return one copy of the challan to the treasury
officer through bank employee only and not through the remitter. The remittance voucher
shall be entered by the concerned auditor in the particular Madhwar of the treasury.
Treasury receipt No. and date shall be recorded on the voucher and the same shall then
be handed over to the concerned remitter after getting it signed by the treasury officer.
The following seal shall be used by the treasury:-
“ Received the amount and accounted for in Madhwar vide [Link].--------------
dated------------------“
Sd/- Sd/-
Signature of auditor Seal and signature of the Treasury Officer
The duplicate copy of remittance voucher being retained by the bank is forwarded by the
bank to the treasury officer with the daily account.
By Cheque:- Token money is tendered into a banking treasury on Govt. account by
cheques, cheques on banks which have clear accounts with the J & K Bank will be
accepted in payment of Govt. dues or in settlement of other transactions. Such cheques
should always be crossed. Until a cheque has been cleared, the Govt. can’t admit that
payment has been received and consequently final receipt will not be granted when a
 59

cheque is tendered. A receipt for the actual cheque will be given in the ist instance as
under :-
“Received cheque no.----------------- dated----------------for Rs______________ drawn on
__________________ bank.”
There will be a daily clearance of cheques accepted and the transactions will be included
in the daily account submitted to the treasury.
If the cheque is accepted, the advice of receipt or certificate of receipt when required
should be prepared in the treasury and not in the bank because receipt of the cheque and
amount has been entered in the treasury accounts.

Q. What instructions are necessary for remittance of revenue on Govt. account into
treasury by money order?
Ans. Revenue collected at outlying stations should usually be remitted to the nearest
treasuries direct but in cases where expenditure on account of T.A. etc. of a G/S deputed
from an outstation to credit Govt. money into nearest treasury exceeds the charges on
account of money order commission on the same amount of money. Heads of departments
are attained to permit remittance of such money by money order to the nearest treasury
and to charge the commission to contingencies. The necessary particulars of Govt. money
remitted by money order shall be recorded on the money coupons by departmental
officers:-
1. The remittance of money order will fill in necessary entries on a money order form
adding his signature at the foot.
2. Necessary particulars and full classification shall be recorded on the money order
coupon.
3. On the “acknowledgement” portion of the form shall be entered designation and address
of the collecting officer of the department to which the remitter belongs and the amount
of the order.
4. All money orders shall be addressed to the in charge of nearest treasury by designation
and not by name for credit to Govt. account.
5. All the entries made in the form must be legible. The form may be filled up either by the
remitter himself or by someone on his behalf.
 60

6. In cases in which Govt. money is remitted by money order, the following procedure shall
be adopted at the treasuries:-
Payments on account of money orders shall not be made in cash. The transactions
shall be adjusted by book transfer in the prescribed form signed by the post master for
the total value of money orders payable to the treasury on each day. The
acknowledgement with the coupons of the money orders shall then be forwarded by the
treasury to the collecting offices of the department concerned and also an advice of all
the remittances received by money order on each day on which such transactions may
occur. In such cases no duplicate challan is tendered at the treasury but the money
received from the post office is credited without any challan.

Q. What is the procedure at treasuries in paying out the money?

OR
Explain in brief procedure for drawal of money from the treasuries?
Ans. The procedure at treasuries in paying out money is as under:-
1. Money is drawn from treasuries by bills and cheques.
2. The bill or other voucher presented as a chain at treasury will be received and examined
under the supervision of the accountant by affixing his dated initials on all such
documents in token of cheque. If it is deficient in any of the following respects, it should
not be cashed but should be returned to the DDO for completion. Failing which it is
noted as an irregularity of the treasury.
a. Prescribed form.
b. Signature and countersignature.
c. Quotation of sanction or authority where necessary.
d. Affixing of receipt stamps where necessary.
e. Arithmetical correctness of totals and calculation of broken periods.
f. Attestation of alterations.
g. LPC and absentee statements for all officials on leave or deputation attached.
h. Printed instructions on reverse of TA bill form strictly complied with classification of
account complete.
 61

It should then be laid before the treasury officer who if the claim is admissible,
the signature true and in order, the treasury officer should sign the order for payment at
foot of the voucher taking care to adopt the precautions prescribed elsewhere in treasury
rules. Care should be taken that all bills and vouchers passed for payment are credited to
payee’s a/c or official a/c as the case may be on the same day.
3. The treasury officer is also required to examine the accuracy of arithmetical
computations in the bill.
4. Bills presented in the forms prescribed in the J & K financial code Vol-II or in the
departmental manual or code concerned shall alone be accepted at a treasury.
5. Special care should be taken by the treasury officer as regards all vouchers and accounts
showing signs of alterations. In such cases the attention of the DDO should be formally
drawn to the irregularity.
6. No pension is authorized to draw money on a treasury by means of cheques without
special order of the Govt. and before he has been placed in accounts with that treasury
by the A.G.
7. When a cheque is presented, care should be taken to ascertain by examination of its
printed number, that it really was taken from the book notified as in use by DDO who is
deemed to have signed it.
8. All cheques, bills etc preferable at treasury for payment can be endorsed only once in
favour of the specific party to whom the money is to be paid. Provided that when the
endorsement is made on a cheque or a bill in favour of a messenger/agent (Agent means
any banker acting as a collecting agency for and on behalf of the Payees banker) for
collection.
9. In case of a contingent bill which has been endorsed in favour of a firm, the firm can re-
endorse it to banker or to messenger for collection only and the banker can in turn
endorse it to a messenger or an agent for collection. Thus in all three endorsements are
permissible in such cases.
10. After a cheque or bill has been completely entered in the accounts and the order to pay
signed by the treasury officer . it shall be passed on to the J & K Bank branch concerned
which shall credit amount to concerned payees account and stamp the document “PAID
BY TRANSFER”.
 62

11. At present in all banking treasuries, no payment is made in cash . payments at treasuries
are made by credit to the payees account or through bank drafts or by credit to the
DDO’s official account etc. as per special instructions issued by the Govt. from time to
time in order to avoid fraudulent drawal.

Q. what time schedule has been prescribed for receiving various kinds of claims at a
treasury from the DDO and disbursing thereof in order to enable the treasury officer to
apply requisite checks or claims preferred for payment at a treasury?
Ans. In terms of Rule 5.26 A inserted vide SRO 306 dated 03-07-1981,the following time
schedules have been prescribed for receiving the claims at a treasury from the DDO and
disbursements thereof in order to enable the treasury. Staff to apply requisite checks and
claims preferred for payment at a treasury.
[Link] Nature of claim Minimum time for Date on which the bills/cheques will be
presentation of payable at the treasury
bills/cheques at a
treasury/pay & account
offices
1 2 3 4
1 Pay bills 3 days earlier to the date of Last working day of the month to which the
payment claim pertains. such bills presented at the
treasury on the scheduled date but not paid on
the last day of the month shall be payable
between 1st to 10th of next month.
2 Arrear pay bills 2 days earlier to the date of 11th to 20th of the month
payment
3 TA bills 2 days earlier to the date of 5th to 24th of the month
payment
4 Local fund /deposit bills 2 days earlier to the date of 5th to 24th of the month
payment
5 Contingent bills 2 days earlier to the date of 5th to 24th of the month
payment
6 GP fund and other Same day All working days
advance bills of G/S’s and
other bills if any
7 Cheques Same day All working days, payment of contractor
cheques shall not be made on the last 3
working days of the month
 63

8 Bank collection Same day All working days

9 Hundies Same day All working days
10 Contra credit bills Same day All working days except last 3 working days of
the month
11 pension Same day All working days except ist and the last three
working days of the month.

Note.1. The restrictions of non payment of various claims during the last week of the
month will not apply to the month of March.
Note.2. The Treasury officer may make payments in relaxation of the above schedule in
exceptional cases with the approval of finance department.
Q. What general instructions are laid down in treasury rules for inserting payment
orders on bills after they are checked?
OR
What instructions are laid down in treasury rules while writing payment order on bills?
OR
What instructions shall be observed for passing of bills at treasuries?
Ans. The following instructions shall be observed for passing of bills at treasuries:
1. Payment order shall always be written up in red ink in figures and words.
2. Every correction or alteration in the payment order shall be attested by the full signature
of the treasury officer who signs it.
3. It is the duty of the controlling officer to distribute gratuity amongst the various DDO’s.
The distribution of grants made by the controlling officers should be intimated to the
concerned treasury officer, objective and DDO wise. The signature of controlling officer
on the allotment copy of funds endorsed to treasury officer concerned should be attested
by the concerned DDO under his seal and signature in order to verify the accuracy of
allotment.
4. The treasury officer will maintain a record of allotment of funds in respect of each DDO ,
object wise and watch the drawals with reference to the allotment.
5. Each claim for payment presented at treasury shall be accompanied with a drawal
register . each claim for payment must be entered in the drawal register by the concerned
DDO under his seal and signatures. The last three columns of the drawal shall show the
 64

allotment of funds under each sub-head, progressive total of expenditure and balance
available under each sub-head.
6. The treasury officer shall insert his initials/signatures on the drawal register against
each claim passed for payment at treasury especially against net payment.

Q. what are the main checks to be exercised at treasury while making payment of
claims?
Or
What general checks are exercised by the treasury on the bills presented for payment
before pass-order is written up?
Ans. The following are the main checks exercised by the treasury on the bills presented
for payment before pass order is written up:
1. Whether every correction in the bill or alteration in the total of a bill has been separately
attested by the full signature of DDO concerned.
2. Whether the note to the effect that the amount of the bill is below a specified amount
expressed in whole rupees has been recorded in the body of the bill. The amount so
specified should be a sum slightly in excess of the total amount of the bill.
3. When a claimant or payee is unable to sign his name whether his signature furnished by
him in the form of mark or thumb impression is attested by some person known to the
treasury in token of its genuiness.
4. Whether the bill contains adequate information as to its nature, amount claimed, period
to which the claim relates etc.
5. Whether the rules regarding the completion of voucher and the endorsements on bills
have been observed.
6. Whether the bill, cheque or other voucher bearing any erasure is returned to the drawer
for presenting a fresh bill. If bills bearing erasure are received frequently from any
office, the treasury officer shall bring the fact to the notice of the DDO.
7. Whether the totals in the bills have been checked and found to be correct . the treasury
shall be responsible for seeing to the arithmetical inaccuracy or obvious mistakes in the
bill presented for payment and intimate to the DDO if any correction made.
 65

8. Whether arrear pay is drawn on separate bill and not included in the monthly pay bill.
When checking arrear claims, the treasury shall pay special attention to the rules laid
down in J & K Financial code Vol. I in this connection.
9. Whether the signature of DDO recorded on the bill agrees with the specimen signatures
already communicated to the treasury.
10. Whether the classification recorded on the bill is in order.
11. The treasury shall not honor a claim which it considers to be disputable. It shall require
the claimant to refer it to the Accountant General.
12. Whether the bill is entered in the drawal register.
Q. What are the main checks exercised at treasury in respect of pay bills?
Ans. The main checks exercised by the treasury on pay bills presented for payment before
pass order is written up are given as under:-
1. In case of temporary establishment, whether the number and date of Govt. order in which
establishment was last sanctioned/continued and the period up to which sanctioned, have
been noted on the pay bill.
2. Whether in respect of deductions made in the pay bills, schedules in the prescribed form
duly signed by the DDO have been attached to the bills.
3. In the case of Persons for whom pay is claimed for the first time on account of new
appointment whether a certificate regarding the receipt of the age and health certificate
etc has been recorded on the bill.
4. In the case of persons for whom pay is claimed for the ist time on transfer from other
station whether the last pay certificate has been attached to the bill.
5. In respect of arrear claims whether the certificates,
I. That the amount claimed in the bill was not drawn and paid before.
II. That a note of the arrear claim has been made in the office copy of the bills (pay
acquitance) for the period to which the claim relates are recorded in the body of the bill.
6. If any person has been absent during the month on leave (other than casual leave) or on
deputation or on under suspension etc whether the absentee statement in form FC-20
duly signed by the DDO has been attached to the bill.
7. When a periodical increment is claimed on behalf of a G/S in an establishment pay bill,
whether the increment form in FC-21 duly signed is attached to the bill.
 66

8. Whether income tax is deducted from the pay of employees , if this income for the
financial year is found due for deduction of income tax.
9. Whether every correction in the bill or alteration in the total of a pay bill has been
separately attested by the full signature of the DDO concerned.
10. Whether note to the effect that the amount of the bill is below a specified amount
expressed in whole rupees has been recorded in the body of a bill. The amount so
specified should be sum slightly in excess of the total amount of the bill.
11. Whether the pay bill contains adequate information to its amount claimed, period to
which claim relates etc.
12. Whether the signature of DDO recorded on the bill agrees with the specimen signatures
already communicated to the treasury.
13. Whether the classification recorded on the bill is in order.
14. Whether the pay bill is entered in the drawal register.

Q. what are the main checks exercised at treasury in respect of TA bills?

The main checks exercised at treasury in respect of TA bills are given as under:
1. Whether all the particulars viz, head, quarter, pay month of claim, classification etc
required to be indicated in the TA bill have been furnished.
2. Whether the purpose of journey has been noted by the DDO.
3. Whether all the prescribed certificates printed on the TA bill and other necessary
certificates have been signed by the DDO.
4. Whether the certificate, “that the amount claimed in the bill was not drawn and paid
before” has been recorded on the body of the TA bill.
5. Whether the TA claims have been preferred within the time limit prescribed under the
rules.
6. Whether the amount of advance TA if any taken previously has been adjusted in the TA
bill.
7. Whether TA bill needing countersignature have been countersigned by the competent
authority.
8. Whether the sanction of the competent authority for grant of advance TA is enclosed with
the TA bill.
 67

9. Whether sanction of competent authority when a G/S travels by a mode of conveyance to

which he is not entitled under the rules applicable to him.
10. Whether every correction in the bill or alteration in the total of a TA bill has been
separately attested by the full signature of the DDO concerned.
11. Whether note to the effect that the amount of the bill is below a specified amount
expressed while in rupees has been recorded in the body of a TA bill. The amount so
specified should be sum slightly in excess of the total amount of the TA bill.
12. Whether the TA bill contains adequate information to its amount claimed, period to
which claim relates etc.
13. Whether the classification recorded in the TA bill is in order.
14. Whether the TA bill is entered in the drawal register.

Q. what are the main checks exercised at treasury in respect of contingent bills (white
D.C. Bills)
Ans. The main checks exercised at treasury in respect of contingent (white DC bills) are
as under:-
1. Whether the contingent bill presented has been prepared on the prescribed form.
2. Whether full particulars of the charges in the bill have been furnished by the DDO.
3. Whether all the sub-vouchers for indirect payments exceeds Rs.100/- have been attached.
4. The prescribed certificate has been furnished in regard to other sub vouchers.
5. Whether in respect of claims which require the sanction of higher authority, reference to
sanction has been quoted on the bill.
6. When a contingent bill endorsed in favour of a private party is presented at the treasury
for payment, the treasury shall check the particulars of the bill with the advice received
from the DDObefore making payment. It would be better if the treasury will also check
that the endorsed bill stands entered in the drawal register of the DDO concerned.
7. Whether the expenditure of the contingent bill does not exceed the allotment of funds
provided for the purpose.
8. An endorsement on a contingent bill shall lapse three months after the date of
endorsement or at the end of a financial year whichever is earlier and the treasury officer
shall not pass an endorsed contingent bill if the endorsement has lapsed. An endorsement
 68

on a contingent bill by a DDO in favour of a messenger by credit to official account is

not an endorsement for the purpose of this rule.
9. Whether the signature of the messenger to whom the amount of bill is to be paid has been
attested by the treasury officer.
10. Whether every correction in the contingent bill or alteration in the total of a contingent
bill has been separately attested by the full signature of the DDO concerned.
11. Whether note to the effect that the amount of the bill is below a specified amount
expressed whole in rupees has been recorded in the body of a bill . the amount so
specified should be a sum slightly in excess of the total amount of the contingent bill.
12. Whether the classification recorded on the contingent bill is in order.
13. Whether the contingent bill stands entered in the drawal register.
Q. what are the main checks exercised at treasury in respect of pension payments?
In making pension payments the treasury officer should satisfy himself on the following
points;
1. A pensioner drawing pension for the first time shall be required to produce his personal
copy of the letter of the A.G. forwarding the pension payment order to the treasury officer
and his signature or thumb impression on the bill compared with the specimen signature
or thumb impression received with the pension payment order (PPO). All other
pensioners will be required to present their portion of the PPO invariably with the bill.
2. The number of the PPO and the amount of pension as entered in the claim, correspond
with the entries on the PPO file kept in the treasury and that the PPO shows that pension
is due for the period covered by the claim.
3. That the pensioners half of the PPO is produced invariably with the claim for the
payment.
4. That if the pension has lapsed the arrears is not passed for payment without further order
of competent authority.
5. That in the case of illiterate pensioners the certificate of non employment has been
explained verbally to the pensioner each time the pension is disbursed. In this case the
treasury officer should also satisfy himself by such enquiry as may be possible that the
pensioner has not been employed anywhere either permanently or temporarily.
 69

6. Claims for payment of pension shall be presented on bills in a form similar to form TC-
16. The bill must be duly receipted by the pensioner or some other person authorized to
give legal acquintance on his behalf and if the pensioner can’t sign his name, his thumb
impression shall be taken on the bill.
7. A life certificate must accompany every pensioner bill which is not personally presented.
When payment is made on a life certificate, it should be made only for months completed
on or before the date of the certificate.
8. A certificate of non employment is printed on TC-16 should be signed by concerned
pensioner. In the case of pensioners drawing his pension through his agent, the
certificate modified accordingly may be signed by the agent, provided that the pensioner
shall himself furnish, once a year, a certificate covering the period for which pension has
been drawn on the basis of agents certificate.
9. When the pensioner is a minor or is for any other reason incapable of managing his own
affairs, the pension may be made to the guardian as per certificate issued by competent
authority in the same way as to the original holder, provided that sufficient proofs are
forthcoming at the time of each payment of the original holder being alive and eligible to
receive the pension for the period covered by the payment.
10. All pension payments are at present one first credited to the payees account of
pension/family pension.

Q. Briefly describe “HUNDIES” (Bill Remittances):-

Bill remittances (HUNDIES) are cash orders from one treasury upon another in form
FC-42. It may be issued within the state by one treasury officer upon another. A hundi is
not transferable and is only payable to the person or on the receipt of the person named
therein as payee but payment will be made, if so desired, on the endorsement of the
Hundi in favour of a recognized bank.
A treasury officer should see that the total amount of Hundies issued on a particular
treasury does not on one day exceed the sanctioned cash limit of the treasury drawn
upon.
Hundies are issued by treasury officers to Govt. servants in the civil departments and to
the public subject to some specified candidates as under:
 70

1. It is issued by treasury officer to Govt. Servants in civil departments from a remittance to

be made by him in his official capacity in payment of any service rendered to Govt. or in
pursuance of his official duties. the purpose of the Hundies must be clearly stated in
application.
2. It is issued by treasury officers of the govt. servants of the PWD departments such as
executive engineers , assistant engineers , and sub divisional officers whether they have
drawing account or not , for payment to be made outside their district but within their
jurisdiction and on public service and not for private purposes for the convenience of the
contractors.
3. It is issued by the treasury officers to the cooperative societies functioning in the state
and to the Govt. of India functioning in the state.
4. Hundies are also issued to private individuals or concerns and quasi-commercial
concerns at a premium of 50 paisa per hundred or a fraction thereof.
5. Hundies in favour of Govt. employees of Ladakh/Kargil Districts may be issued on all
treasuries in the state by Ladakh and kargil treasuries throughout the year at a premium
rate of 25 paisa per cent for amounts in round hundreds.
6. Hundies may be issued on and by Leh and Kargil treasuries to private individuals or
concerns or quasi commercial concerns at a premium of 50 paisa per hundred or a
portion thereof even for remittance of private nature.
Q. What instructions are to be observed by treasury officers in regard to the procedure
in respect of issue and payment of Hundies?
Ans. The following instructions are to be observed by Treasury officers in regard to the
procedure in respect of issue and amount of Hundies:
1. Hundies may be issued within the state by one treasury upon another, irrespective of any
district or provincial restrictions and the time of issuing.
2. Forms of Hundies will be supplied to treasury officers by the Govt. press Jammu in
bound books of 50 each. Indents for supplies should be made on the press.
3. Immediately o receipt of a parcel of forms of HUNDIES, they should be carefully
examined. The books will be in triplicate and will bear a consecutive printed numbers.
The forms on receipt be counted and the series of numbers in each book checked.
 71

4. The forms of Hundies and advices should be placed in store under the lock and key of the
treasury officer. While issuing a book a treasury officer must be careful not to issue a
book of a later serial number before on earlier. Every evening the unused forms will be
returned to him and he shall see that the series is unbroken. That no form is kept back
unused unless it is spoilt. Spoilt form should never be destroyed. However it should be
defaced under the treasury officer initials and the form retained in the HUNDI book for
check by local audit at the time of inspection.
5. A person requiring a Hundi shall tender with the money a formal application in
prescribed form which may be obtained from the treasury. The application form duly
filled in will serve a challan for the money tendered. The application will be retained by
the treasury officer for transmission to the A.G. along with the daily schedule of
remittance drawn. A person applying for a Govt. Hundi should certify on the application
that the draft is wanted for bonafide. Public purpose and describe the object of the
remittance.
6. Hundies shall be prepared and signed from time to time as they are applied
for ,immediately on the receipt of cash or its equivalent.
7. Drawing offices who obtain on State service Hundies for payment of contingent
expenditure or part payment of any bill of any district establishment. Parts of which is
employed in the interior of the District, need not remit cash at the treasury but should
apply to the concerned treasury officer for issuing of the Hundies on respective treasuries
and record necessary acknowledgement on the bill as under:
Received payment in cash___________________, by Hundies on the following
treasuries,
I, -------------treasury for Rs-------------------.
II, ------------treasury for Rs---------------------.
8. At the signature of a Hundi, the register (Form TA-25) together with the application for
the Hundies, the advice and the book of forms shall be laid together before the treasury
officer. The treasury officer will initial each entry in the advice and the register at the
same time he signs the Hundi after he satisfies himself that:
I. The several documents agree.
II. The authority for issue is sufficient.
 72

III. In addition to the amount being entered in figures the amount is written in words.
IV. A sum little in excess is entered in words across the draft. E.g. under Rupees thirty mean
that it is less than Rs.30/-
9. An advice of all drawings effected on a particular treasury on any particular date shall
be sent to the treasury drawn upon in form TC-19 . the advice must be completed, signed
and dispatched by the treasury officer before the treasury closes on the day of issue.
10. If any alteration be made in a Hundi, prior to issue, the correction should be noted in the
advice and each alteration, both in Hundi and advice shall be authenticated by the
drawer’s full signature. The amount should be entered carefully if the drawer enters the
amount carelessly as to enable a stranger to alter it and fraudulently to obtain payment
of a large amount. The drawer and not the drawee must bear the loss.
11. The issue register of all the Hundies will be kept in Form-TA-25 and shall record
particulars of all hundies drawn by a treasury on other treasuries. Hundies drawn as per
the register of drawings (form TA-25) should be listed in a schedule to be submitted to
the A.G. with accounts.
12. A record of Hundies encashed should be maintained in a register in form TA-26 in which
the entry of Hundies carried should be made as they are paid . the daily total being
carried into the cash book. A schedule of Hundies cashed should be prepared from the
original (TA-26) and forwarded to the A.G. duly accompanied with receipt Hundies with
the accounts.
13. While cross checking, the treasury officer shall each evening see that the register of
remittances (Hundies) drawn and encashed and the connected schedules check one
another directly. The total of each schedule must agree with total receipts or total
payments for the day as booked under the Head ”Hundi Remittances” in the cash book.
14. The paying treasury officers should check the specimen signature of the drawer
(Treasury Officer Issuing the Hundi).
Q. what general instructions are provided in the rules for preparation and form of
cheques?
OR
Describe in brief the detailed instructions for drawing cheques on treasuries?
Or
 73

Describe the rules which relate to cheques presented on treasuries for payment?
Ans. No one is authorized to draw on a treasury by means of cheques without special
order of Govt. and before he has been placed in account with that treasury by A.G. e.g. In
PWD, forest and such other departments. The departmental offices are authorized to
make drawals from the treasuries on cheques. The following rules relate to cheques:-
1. Cheque books required by DDO’s authorized to draw on treasuries should be obtained
by them direct from the treasury concerned. The treasury officer shall supply a cheque
book only on receipt of the printed requisition which is inserted in the cheque book
towards the end and never shall more than one cheque book be supplied on a single
requisition. The requisition shall be signed by the DDO concerned. The DDO shall count
the number of forms contained in each cheque book and record a certificate of count on
the fly leaf.
2. A separate cheque book should be kept for each treasury. Cheques from books obtained
from a particular treasury should not be drawn on other treasuries.
3. Each cheque book must be kept under lock & key in the personal custody of the DDO.
Who when relieved should take a receipt for the correct number of cheques made over to
the relieving officer. The loss of a cheque book or a blank cheque should be notified
promptly to the treasury officer with whom the DDO has a Drawing account.
4. No advice of the issue of any cheque need by rent to the treasury officer.
5. All cheques should be written and signed in indelible ink only.
6. Cheques drawn in favour of contractors and others should be delivered to them by the
disbursing officer or his assistant (cashier) appointed for the purpose.
7. It is permissible to draw money from time to time from the treasury by cheques to
replenish the cash chest. The DDO must draw such cheques for the minimum of cash
actually required to meet current disbursements. First of all such cheques shall be
credited to the official account of DDO and then drawn from bank.
8. Cheques remain current for 3 months only after the months of issue. If a cheque is not
cashed at the treasury within the specified period, it may be received back by the drawer
who should destroy it and issue a new cheque in lieu of it. The fact of destruction and
number and date of new cheque should be recorded on the counterfoil of the old cheque
and the number and date of the old cheque should be entered on the counterfoil of the
 74

new cheque. The fact of new cheque having been issued should be entered on the date of
issue in red ink in the cash book in particular column and a note being made at the same
time against the original entry in the cash book.
9. When it is necessary to cancel a cheque, the cancel amount should be recorded on the
counterfoil and the cheque if in the drawer’s possession should be destroyed. If the
cheque is not in the drawers possession, he must promptly request the treasury officer to
stop payment of the cheque and on ascertaining that the payment has been stopped shall
write back the entry in his cash book by exhibiting the amount of the cheque as a minus
figure on the payment side in the bank/treasury column. A counter refund of the second
entry should be given against the original entry in the cash book. A cheque remaining
unpaid for any cause for 12 months from the date of its issue should be cancelled and its
amount written back in a similar manner.
10. If a drawing officer is informed that a cheque drawn by him, has been lost he shall
address the treasury officer concerned forwarding for signing a certificate in the
following form,
“ certified that cheque No. _____________ dated_________ for Rs___________
reported by DDO to have been drawn by him on this treasury in favour
of___________________ has not been paid and will not be paid if presented hereafter.
Dated---------------------------- Sd/-
Treasury officer.
11. If after search through the lists of cheques paid, the treasury officer finds that the cheque
has not been cashed, he will sign and return the certificate taking care to note the
stoppage of the cheque. A board showing the particulars of stopped cheques being hung
up before the clerk concerned. If the original cheque be presented afterwards, the
treasury officer shall refuse payment and return the cheque to the person presenting it
after writing across it “payment stopped”.
12. The drawing officer on receipt of the certificate duly signed by the treasury officer shall
enter in his account the original cheque as cancelled and may issue another.
13. If a cheque is issued by Govt. in payment of any sum due by Govt. payment shall be
deemed to be made if the cheque is handed over to the payee or his authorized messenger
on the date it is so handed over.
 75

14. All cheques shall be written in words and figures. All cheques shall have written across
them in words at right angles a sum a little in excess of that for which they are granted.
Thus under Rs.60/= only means that the cheque is for Rs.59/=
15. All corrections and alterations in cheques should be attested by DDO by their full
signatures.
16. All cheques issued by various DDO’s drawn in favour of an individual, a firm, a
company, a statutory body etc for services rendered or supplies made by them to the
Govt. should invariably be crossed with the addition of the words, “ Accounts Payee
only” between the crossings.

Q. What are ‘DEPOSITS’. Explain in brief the procedure which shall be adopted in
treasuries in respect of receipts and payments of ‘deposits’. Mention only about I.
Revenue deposits. [Link] & criminal deposits III, Personal deposits and IV, Deposits of
fee .

Ans. On page no. 20 to 23

Q. Which classes of payments are exempted from stamp duty?
Ans. The following classes of payments are exempted from stamp duty:
1. Payments made to a G/S of J & K state in official capacity.
2. Payments of cheques from treasuries.
3. Payments of scholarships to students or grants in aid to private schools etc.
4. Payments of pay bills or TA bills from treasuries.
5. Payment of hundies from treasuries.
6. Payment of cheques from treasuries.
7. Payments made to Govt. of India or any other state Govt.
8. Payments to Co-operative societies.
9. Payments of postal money orders.
Q. write brief notes on
1. Resources 2. Cash balance of the govt. [Link] of funds.
1. Resource:- Resource is the process of distributing the cash balance of the Govt.
between the different treasuries so that each shall at all times have sufficient funds to
meet the local demands on it. Some treasuries collect more receipts than they require for
 76

their payments and other collect lesser than their requirements. The surplus treasuries
have to feed the deficit treasuries. Generally resource operations in the state are carried
out by remittance of notes and coins between treasuries.
[Link] balance of the Govt.:- The cash balance of the Govt. is made up of the balances
in its accounts with the state bank of India, j & K bank and other nationalized banks. It
also includes the balances at non banking treasuries. Balances held by department
offices are not reckoned as a part of the General cash balance of Govt.
3. Distribution of funds: it is the duty of the finance department to see that all the
treasuries in the state are adequately supplied with all kinds of notes and coins and to
provide sufficient funds to the J & K bank Ltd. At its head office and branches to meet the
Govt. demand. All the non banking treasuries in the state shall communicate their cash
balance daily to the Finance department and the banking treasuries shall communicate
their net totals of their transactions ( Receipts minus disbursements) with the bank.

Q. Explain the terms and conditions as are contained in the agreement between the
Govt. of J & K and the J & K Bank?
Ans. On 13-11-1953 an agreement has been made between the finance secretary ( for and
on behalf of the J & K Govt.) of the one part and the J & K Bank ( a company
incorporated under the J & K Companies act 1977 having its registered office at
Srinagar herein after called the “Bank” of the other part.
Whereas in order to enable the bank to advance and develop the financial,
commercial and industrial conditions of the state, the Govt. has agreed to aid and help
the bank by employing it as their banker on such special and concessional terms and
conditions given as under:-
1. The bank shall carry on the business of banking in all its various branches and
departments in accordance with the objects more particularly set out in the memorandum
of association of the bank.
2. The Govt. shall employ the J & K Bank as their banker as for as possible and the bank
shall act as the banker to the Govt. and the banking business of the Govt. shall be
transacted by the bank.
 77

3. The Govt. may whenever they so desire appoint their own auditor to execute the accounts
of the bank for whatever period they may choose. The expenses for such audit shall be
borne by Govt.
4. The Manager (Chairman) of the bank shall be a person appointed by the Govt. and his
salary and emoluments will be those as fixed by the Govt. from time to time and such
salary shall be paid by the Bank. He is not entitled to receive any other remunerations in
the form of Bonus etc. from the bank without the previous orders of the Govt.
5. It is hereby agreed that all business transactions or dealings which the Govt. have to
undertake/carry out shall so far as possible be ordinarily entrusted to the bank.
6. All Govt. Departments and other concerns belonging to the Govt. requiring a separate
account at a place where the bank has its branch shall maintain current accounts with
the bank.
7. The Govt. has entrusted and the bank has already taken the charge of the Govt.
treasuries at various places and shall continue to have charge of Govt. treasuries at these
places. The Govt. may at their option similarly entrust to the bank the Govt. treasury at
any other place where the bank has established its branches and the bank shall take
charge of such treasury. The bank shall be responsible for the Govt. balances, losses of
the whole or any part of said balance caused by theft, misappropriation, a criminal
breach of trust committed by any of the employees of the bank or arising out of the
negligence of any of the bank employees etc.
8. The Govt. treasury balances shall bear no interest and the Govt. shall keep sufficient
balances to meet the Govt. demand.
9. The Govt. shall supply to the bank a day and night police guard force of all charges at all
places where treasury work is taken over by the bank.
10. Any difference or dispute or rights or obligations of the parties etc relating to these
presents shall be referred to arbitration with the law relating to arbritration out of the
court for the time being in force in J & k Govt.
11. The agreement shall have retrospective effect from 05-08-1952 and it shall remain in
force for a period of 5 years where after it may be renewed for such period and on such
terms and conditions as may be agreed upon between the parties. At the time of such
 78

renewal provided that either party shall have the right to terminate the agreement on
giving six months notice to the other party.

Q. What rules are prescribed for the guidance of treasury officer and Manager at the
branches of the J & K Bank in conducting the business of the Govt. Treasuries
banking with such branches?
OR
State the rules for treasuries which bank with J & K Bank Ltd?
Ans. The following rules are prescribed for the guidance of treasury officers and of the
manager at the branches of J & K Bank in conducting the business of the Govt.
Treasuries banking with such branches:-
1. The books and accounts will consist of
a. Scroll cash book.
b. A daily account of receipts and payments is made for despatch to the treasury officer.
c. An account in the name of “ Govt. of J & K” is kept in the general ledger.
d. In the scroll cash book will be entered all receipts and disbursements on account of Govt.
the net amount of bills only will appear in the book and the total of each side will form
the daily entries in the general ledger.
2. The daily accounts will be prepared everyday and the manager after satisfying himself as
to its accuracy will forward it to the treasury officer with all pertaining vouchers at the
close of the day who will return it to the bank duly initialled, after due verification with
his books. Daily accounts may however be prepared in duplicate. In such cases the
treasury officer will retain one copy of the accounts and return the other to the bank duly
initialed. Only the net amount paid is shown in the daily account by the bank..
3. Vouchers sent to the treasury must be marked with the words “PAID” in order to avoid
any double payment if falled in the wrong hands.
4. The pass book has 4 columns;
a. Date
b. Total receipts for the day.
c. Total payments of the day.
d. Initials of Manager.
 79

It will be written up and forwarded with the daily account to the treasury officer. The
treasury officer will check the receipts and disbursements column of the daily account
with the entries in the pass book and examine the vouchers and after initialling the daily
account or its duplicate copy in token of his verification will return it to the Manager the
same day or the following morning.
5. Hundies from the treasuries are to be presented to the treasury officer, who will endorse
them to the bank for payment.
6. Payment orders are valid only for a time not exceeding 10 days fixed by the treasury
officer. If presented after the allotted time they will be refused for payment by the bank
until revalidated by the treasury officer.(Rule 7.51 of Treasury code).
7. The bank will ordinarily receive and make payments only during banking hours of
business and will observe bank holidays. It will, however, be kept open for the
transaction of treasury business on any recognized holiday or after banking hours on
working days if so required by the finance department.
8. When the daily account with the challan and vouchers is received from the bank, it will
first be checked with the challans and vouchers which support it. Then the vouchers
which have been already approved and registered by the treasury officer will first be
marked off in the register of challans issued and orders of payment. Then each item of
receipt and payment will be posted from the daily accounts with its challans and
vouchers into the subsidiary registers and entries made in the cash book. The net
difference between the total receipts and the total payments as shown in the daily account
will then be posted in a subsidiary register called the register of J & K bank Deposits
from T.A-6. The register has three columns;
a. The date.
b. The net payments.
c. The net receipts of the day.
When the total receipts exceed total payments, the difference will be posted in column
II and when the total payments exceeds total receipts the difference will be posted in
column III. At the close of the month the difference between the totals of the two money
columns of the register of J & K Bank deposit should be carried into the cash account
 80

into the list of payments. In this process the vouchers must be numbered and arranged
according to the register in which they are entered.
9. The certificate of receipts and payments if required is to be issued to any public office or
departments etc. should be prepared by the treasury and not by the bank.
Q. Who is required to prepare the treasury returns and how are treasury accounts
compiled?
Ans. All treasury returns should be prepared by the treasury and not by the bank.
1. Every item received or paid must be entered at once in some register subsidiary to the
cash book. All receipts are recorded in form T.A-2 and all payments in form TA-3.
According to various classes of heads. The vouchers pertaining to each major head will
be numbered consecutively in a monthly series. from separate register, the daily totals
will pass on into the cash book from TA-1 for receipts and payments.
2. From the cash book and registers subsidiary thereto the entries will be made in cash
account , in list of payments and in the schedules. Cash account and the list of payments
will be prepared in form TA-36 and form TA-37 respectively in which heads of receipts
and payments have been printed. List of payments include total payments being recorded
against each major head.
3. The cash account, the second list of payment and supporting schedules and vouchers
should be dispatched to the A.G. in the following month on the dates given below. The 1 st
list of payments with vouchers and schedules should have been dispatched on the
prescribed date of the month:
1st list of payments 1st to 18th of the month----------------- By or before 22nd of same month
2nd list of payments 19th to end of month--------------------- 5th to 8th of next month
Cash account --------------------------------------------------- 5th to8th of next month.

Q. What account returns are required to be rendered by the treasury officer to the
Accountant general.
Ans. The returns which are required to be rendered by the treasury officer to the
Accountant General (A.G) are as under:
 81

1. The account returns to be prepared at treasury should be prepared from the Accountants
cash book and subsidiary registers and dispatched to the accountant General punctually
on the prescribed dates.
2. Separate returns should be rendered in respect of transactions of the central Govt. and in
respect of those taken against the state.
3. The cash account and list of payments should be prepared in form TA-36 and 37
respectively. The cash account should show the total receipts collected and the list of
payments, the total payments made during the month. A memo of vouchers in form TA-48
shall be appended to the 1 st and 2nd list of payments and the cash account for the month
on the dates indicated below:
1st list of payments 1st to 18th of the month----------------- By or before 22nd of same month
2nd list of payments 19th to end of month--------------------- 5th to 8th of next month
Cash account --------------------------------------------------- 5th to8th of next month.
4. The lump entries appearing in the cash account, list of payments and schedules
pertaining to these documents should be made therein in time to permit the completion of
these returns and their submission to Accountant General on the due dates.
5. The difference between the monthly totals of receipts and payments column of the
subsidiary register of J & K bank deposit (TA-Form-6) should be carried into the
appropriate cash account or the list of payments as the difference represent net drawing
from or net payments into the bank during the month.
6. The supporting schedules which should accompany the monthly accounts are indicated
below:
I. There should be separate schedules of receipts and expenditure of each department and
for each Major head of account.
II. Refund of revenue may be shown in a separate column in the payment schedule of the
department or Major Head of Account concerned.
III. Each schedule of payments should be prepared in two parts, the ist part relating to the
payments from the 1st to the 18th of the month and the 2 nd part relating to the payments
made from 19th to the end of the month . the total of 1st schedule of payments should be
brought below and added to the total of 2nd schedule of payments so that the grand total
in the latter may agree with the entry in the list of payments.
 82

Q. What account returns are required to be rendered by the treasury officer to the
concerned fund offices including G.P. fund and S.L.I.
Ans. The treasury officer render the following accounts on the schedule dates to
concerned district fund offices and concerned S.L.I. offices.
I. 1st list of payments on account of GP fund advances/withdrawals and 2 nd list of payments,
thereof of a month are submitted to the concerned fund office along with GP fund
withdrawal schedule for posting.
II. GP fund deduction schedules as are detached from the pay bills and GP fund schedules
received as cash account of a month are submitted to Fund office concerned for postings.
III. The totals of each list of payments on account of GP fund and GP fund deduction should
match with the amounts shown in Accountants cash book and accounts submitted to A.G.
Similarly state life Insurance premium deduction schedules should be submitted to the
concerned state life insurance office for postings.
 83

*******
Q. Payment of Money and receiving of money at the treasury:-
Any person paying money into the treasury on Govt. account shall accompany
Form-FC(2). The Challan shall contain, the details regarding:
1. Name of the person tendering the money into the treasury.
2. On Whose behalf the money is tendered.
3. The Nature of Remittance, amount tendered to be written in words as well as in
figures.
4. Signature and designation of remitter.
5. The official responsible at the treasury for examining the challan-FC-2 will after
proper examination enter the challan in the register of Challans and will write on both
original and duplicate the words ( Entered Correct ). He will then affix his initials with
date on Challan specifying the head of account to which the amount is creditable. He
will then return the original and duplicate challans to the payer or remitter who will
proceed to the Bank. There the money will be received and credited to the proper head of
account and acknowledgement granted to the remitter on the original challan, the
duplicate challan being retained by the bank and forwarded to the T.o. with daily
account. These challans are valid for not more than 10 days as may be fixed by the T.O.
If they are presented after the specified period, the money will not be received by
concerned bank until they are revalidated by the T.O.
Cheques on the local banks will be accepted and acknowledgement
granted to the effect that the cheque stands received. There will be a daily clearance of
cheques and therefore the transactions on this account will be included in the daily
account submitted in the treasury. If a cheque is dishonoured by the bank on its
84

presentation, the fact will be at once communicated to the payer with a demand to remit
the cash. Challans accompanying the receipt shall be in triplicate. Original copy to be
given by the Bank to the tenderer of the money and other two copies retained and
forwarded to the treasury with daily account. The T.O. in turn shall retain one copy and
forward the other copy to the A.G. with monthly account. when the payment in the
treasury is made partly in cheque and partly in cash, this shall not be included in the
same challan.

Q. Remittance of Money By Public works Officers:-

Ans. The public works department officers have to remit cash off and on into the treasury.
They are required by the rules to keep the records in form PW-4A. In this form the
departmental officers enter all the remittances made in the treasury. This book shall
accompany the cash and challan (single) to be received by the treasury. At the end of the
month a consolidated receipt for all remittances made during the month are prepared by
the departmental officers and are required to send this remittance book to the T.O. who
after verifying these transactions with the treasury record will sign the book and the
receipt and then return to the officer. The consolidated receipt of the remittances shall
also be signed by the T.O.
In respect of each treasury a separate remittance book is required to be
maintained which will be available in the office of Executive Engineer of a Division. The
money remitted by the PWD department, Sub division officer to a treasury shall be
accompanied by a Challan Form-FC(2) in triplicate. One copy is required to be returned
to the tenderer duly signed which will serve the purpose of a receipt and the other copy is
retained by the treasury as a record. The [Link]. on the receipt of received challan with
the Sub-Divisional officer’s cash book in support of the payment made into the treasury
shall enter the amount in his remittance book and forward the same with the original
challan to the T.O. The T.O. will return the remittance book with consolidated receipt for
the amount paid into the treasury during the month by the [Link]. and his sub-ordinate
officers. However the T.O. will retain the challan.
Money received by the departmental officers on account of Govt. dues shall be
remitted in treasury immediately for affording credit as public works remittances. If a
 85

divisional officer or a Sub-Divisional officer makes use of receipts for making

expenditure he is required under rules to send a cheque to the treasury for the amount
thus utilized at the end of the month. The endorsement by the [Link]. will be “Received
payment by affording credit to the relevant heads on account of PWD”. The remittance
made through bank cheques shall be entered in the remittance book but in place of
treasury receipt shall be entered as by Bank Cheque.

Q. Withdrawal of Money from treasury?

Ans. Money may be drawn from the treasuries in two ways namely
1. By Bills
2. By cheques.
A bill for payment from the treasury for the amount is prepared and signed by the
concerned DDO and also with the dated initials of concerned dealing assistants. The bill
contains the information regarding:-
1. The nature of the claim.
2. The amount claimed.
3. The period to which the claim pertains.
4. The orders of the sanctioning authority, the amount is incurred under special orders.
5. The authority for any deduction made on the bills .
6. The Major head, Minor head, detailed head to which amount is debited.
The printed bill forms prescribed under rules obtained from the Govt. Press
are to be used for making withdrawals from the treasury. The bills must be signed in ink.
Now as per recent amendments these can be signed by ballpoint pen also. Entries and
signatures on the bills with ball pens are also permissible. No bill for payment should be
signed with a stamp. The amount of the bill should be written in words as well as in
figures. All the corrections and alterations in the total of the bill whether made in words
or in figures shall be attested by the full signatures with date of the DDO. The charges
against two or more major heads should not be included in one bill. When a rule requires
the counter signatures of higher officer before payment such bills shall not be presented
at treasury for payment unless the countersignatures are not obtained. When the codal
 86

formalities are completed, the bill is presented at the treasury for payment. The treasury
officials should accept the bill for payments when these are prepared on printed forms.
However stenciled copies or typed copies may be accepted under special circumstances
but generally these should be avoided. The bills containing Over writings, Arithmetical
mistakes, out rightly be rejected. However in case of minor mistakes, these may be
accepted by T.O. after necessary corrections are made. In case any doubt arises at the
treasury level they can have the necessary classification in writing from the concerned
DDO. The salary bills may be presented at the treasury duly signed 3 to 6 days before the
last working day of the month to which they pertain. The cheque drawing authorities are
also required to present the cheque printing to salaries before 3 to 6 days of the month to
which they pertain. Cheque from the cheque books obtained from a particular treasury
should not be drawn on another. The cheque book must be kept under lock and key in
personal custody of DDO. When the officer is relieved on transfer he will take a receipt
for the unused cheques of the cheque book. The loss of cheque book or a blank cheque
shall immediately be informed to T.O. with whom the DDO has to DDO powers. The
cheques should be written in ink or ball point pen. The T.O. is required under rules to
make payment in accordance with the financial department from time to time. The T.O
should refuse the payment of a bill, if the demand is not provided for by the rules or is not
covered by a special authority from A.G. The T.O can’t refuse the payment of a bill which
don’t comply with the certain rules of Financial code. The responsibility for incurring
such unsanctioned charges rest with the DDO. The T.O. is not authorized to refuse the
payment of such bills on the ground that the charges have not been sanctioned. The
following are the general checks to observe at the treasury on bills presented for payment
before pass order is given:-
1. Whether every correction in the bill or change in the total has been attested with
the full signature of the DDO.
2. Whether a note to the effect that the amount of the bill is under Rupees.
3. When the claimant or a payee is unable to sign his name and has furnished his
signature in the form of Mark or Thumb Impression whether the mark or Thumb
Impression stands attested by some known person to the treasury in token of its
genuiness.
 87

4. Whether the bill contains sufficient information as to its nature, amount claimed
and the period to which the amount pertains.
5. Whether the rules regarding the completion of vouchers and endorsements on the
bills have been observed.
6. In case the bill, cheque or voucher etc. bears any overwriting, the T.O. shall
return the documents and inform the concern to prevent a fresh document.
7. In case of specific instructions issued by A.G. it should be seen that these have
been complied.
8. Whether the specimen signatures recorded with the T.O. agrees with those
appended on the Bills/Cheques.
9. Whether there are sufficient funds available under the amount of appropriation to
which the bill pertains.
10. Whether the total recorded in the bill are correct. The treasury officials are
responsible for seeing the arithmetical accuracy or obvious mistakes in bills presented
for payment and intimate to the DDO.
11. The arrear bill should be prepared in the separate bill book and not with monthly
pay bill. At the time of observing Check on the arrear bill the T.O. should pay special
attention towards the rules prescribed in this bill.
12. Whether the classification noted on the bill is in order.
13. Before the bill is passed for payment and the treasury should verify the
retrenchment register maintained in order to see and check the order of the A.G. for the
amount to be recovered from any officer and if there is any order to this effect, the
necessary recovery should be effected from the concerned bill.
14. Whether the column containing ( Received Contents ) has been received by DDO
or messenger as the case may be and whether the bill has been stamped as provided
under rules.
After completing these fulfillments at the treasury the T.O. will send
the bills along with its relevant vouchers to the bank authorizing to make the payment to
the concerned either in cash or by credit to the official accounts of the DDO. The bank as
per the amount available in the Govt. account makes the payment to the concerned by
way of cash or affording credit to the account as required by concerned T.O. in his
 88

payment order. The daily accounts along with scrolls or bank sheets are sent to the
treasury every day after the working hours are closed. These vouchers along with bank
sheets are scrutinized by treasury officials and the necessary posting is made in the cash
book and the relevant account books of the treasury. The 1st list of payment is sent to A.G.
from 1st of the day to the 18th of the month by or before 23 rd of the same month. The 2nd list
of payment from 19th of month to the end of the month. Accordingly the cash account sent
to A.G. by or before 8th of the following month, the other accounts such as [Link], SLI
account is required to be sent to respective officers by or before 25th of same month.

Q. Rules regarding the receipts of Departmental cash chests in the treasury?

Ans. Cash chests or sealed bags belonging to Govt. Departments may be lodged in the
treasury for safe custody. They should be presented with a slip or memoranda stating the
contents and a receipt should be obtained from T.O. for these chests or sealed bags said
to contain the amount specified in the slips. The keys of the chests or the treasury boxes
in which the sealed bags are kept should be with a depositing officer. The depositing
officer is entirely responsible for the cash chests or sealed bags so deposited.
ii. Where there is sufficient space available in the strong rooms of the treasuries, The
permission may be granted;
8. By the T.O. in the case of Saddar Treasury Srinagar and Jammu.
9. By the Deputy Commissioner of the Districts in the case of treasuries at districts,
Tehsils and sub-treasuries for keeping these valuables and cash chests in the safe
custody. In case of local bodies an undertaking is obtained to exonerate the Govt. from
all the liabilities in case of Fire, theft, Fraud or any other cause.
Special valuable property and boxes containing cash and valuables required to
be deposited by District Judge and Sub-Ordinate Judges in a treasury may be accepted
by T.O.
iii. Cash chests and strong boxes belonging to the co-operative institutions may at the
request of registrar of Co-Operative societies also be lodged in the treasury for the safe
custody , under the orders of Sadder treasury officer in case of sadder treasuries and
Deputy Commissioners in case of other Treasuries. Here also an undertaking needs to be
89

given by the concerned department to the effect, exonerate the Govt. for liabilities in case
of Loss due to fire, fraud and any other cause.
iv. Security bond, insurance certificates and other valuable documents belonging to the
Govt. Departments may also be kept in treasury for safe custody. Such documents need to
be sent to the treasury in a sealed double cover for a pack with forwarding letter by the
details of the contents being received in the said covering duly signed by the concerned
officer. The T.O. will give receipt for the same after completing all the necessary
formalities as provided in the rules. The treasury will keep all these documents in the
strong room under the lock and key.
v. valuable documents such as share certificates, Mortgage bonds, Bond agreements,
Fixed deposit receipts etc pertaining to Secretariat offices and the offices of the H.O.D’s
shall be received by the S.T.O. Srinagar and Jammu as the case may be in open covers
and enter into the relevant valuable document register after verifying the contents. The
T.O. shall personally verify these documents deposited for safe custody at the end of
every year and is required to furnish a certificate and the concerned secretariat or
H.O.D. by 25th January confirming therein the existence of documents in the treasury and
the conditions thereof.

Q. Money tendered for purchase of Stamps:-

The money tendered for purchase of stamps except service stamps
(Purchased by the Non state officials), no treasury receipt needs to be issued. In the
Tehsil treasuries, the same person being the treasurer, the stamp tehvildar, will issue the
stamp required at the time the treasurer received the money and send on concerned
Arzisal. ( Form FC-2) after noting the fact of issue on it and pass on to the treasury
accountant for incorporation of the need amount in the cash book. In the Sadder
treasuries of jammu and Srinagar where there are separate stamp Tehvildars, the
Arzisals ( Form-FC2) for stamp purchases after being received by the treasurer and
noted by the accountant will be taken to the stamp Tehvildar who will issue the stamp and
keep the documents for delivery to the accountant in the evening after making the
90

comparison of signatures. The commissioner of stamps will arrange printing of the state
stamps. These stamps will only be printed at the press approved by the Govt. The Excise
and taxation commissioner functions as stamp commissioner. At Jammu Saddar treasury
there is a store of stamps called central stamp depot, the stamps store is under the
immediate charge of the T.O. They maintain stock of stamps at an anticipated stock of
three years. Every Sadder Treasury shall have a depot for the custody of the stamps.
Other treasuries will be Branch Depots. Every treasury dealing with the stamp is
required to send” plus and minus” memorandum to the respective stamp commissioners.
There is a prescribed limit of the judicial and non judicial stamp for every treasury. The
limit fixed for stocks are liable to variation at the discretion of commissioner of stamps.
All the treasury officers shall recoup their balances at the close of each year by indents
drawn on T.O. Jammu. These indents shall show separate columns for each
denomination of stamps of which the supply is required. The balance in the depot, the
quantity sold and the quantity indented for as soon as these are received from the central
depot from any other source. The officer in charge shall personally examine the boxes or
packets and shall satisfy himself regarding tampering. If any stamp is unfit for issue due
to faulty manufacture, these should be at once returned to the source from which received
with a report to commissioner of stamps. These stamps after counting is done shall be
kept under double lock in presence of officer in charge. The stamps of different
denomination should be entered in a separate register maintained for the purpose. The
entries in register are required to be checked along with correctness of arithmetic
calculation by the officer in charge. Then the register shall be kept in double lock. The
stocks to be issued to vendors should be sufficient for one month. The T.O. shall be held
personally responsible for any loss that may occur owing to his negligence to observe the
relevant rules provided on his behalf. The officer in charge shall send a necessary
explanation to commissioner that the stamps are unserveable etc. The commissioner
stamps shall examine these stamps and make a necessary entry in the register maintained
for the purpose. The officer in charge shall then with proper permission write off the
value of stamps which have been destroyed giving therein the authorization not
communicated to him by commissioner of stamps for writing off.
91

RECEIPT STAMPS ON VOUCHERS:- Receipts of all sums exceeding Rs.20/- must

be stamped. The following classes of payment however are exempted from stamp duty:
1. Receipt given by or on behalf of the Govt.
2. Receipt on cheques sufficiently stamped.
3. Receipt for any payment of money without consideration.
4. Money paid to a state officer for state purposes.
5. Hundies (remitter, drawer, payee, drawee)
6. Cheques drawn by state public works department and forest department.
7. Pay and travelling allowance bills of establishment and contingent bills.
8. For pay and TA bills, stamp receipts wherever necessary are taken on pay
acqittance rolls.
9. Payment for, to Govt. of India and other state Govts.
10. Payment made to co-operative societies.
11. Payment made to food corporation department kashmir.
12. Receipts endorsed by payee on postal money orders.

REFUSAL OF PAYMENT:- In case the endorsement on the bills and cheques presented
by the civil and chest holding DDO’s is unauthorized, irregular or incomplete. The T.O.
is well within his rights to refuse the payment of the bill. In such the bills/cheques should
be returned to the persons presented it with a memoranda/objection to the effect of giving
grounds of refusal for such payment. Withdrawal money from the treasury for depositing
it into the bank.
1. A Govt. officer may not keep the amount drawn from the treasury in the bank
except with special permission by the Govt. where in case a Govt. gives its
consent . the account must be opened with a branch of J & K bank ltd. If there is
no such bank in the area, the account can under rules be maintained with the post
office saving bank or with the prior concurrence of the finance department with
any other bank situated in the area.
2. Withdrawal for immediate disbursement, money from the treasury should
ordinarily be withdrawn where it is required for immediate disbursement. In no
 92

case the funds withdrawn from the treasury and deposited with the bank in
anticipation of budget allocation or to avoid lapse of funds towards the close of
year. The money should not be drawn without observing the codal formalities just
to avoid the lapses of funds which is not permitted under rules. Now for the last so
many years all DDO’s, drawing bills from the treasuries or making withdrawal
through cheques are authorized to open bank accounts. All the transactions with
the treasury in respect of all units of appropriation are credited to the official
account of the DDO and subsequently the DDO is authorized to credit the
individual accounts of the employees through advices issued on the banks of J &
K where official account is operated by the DDO. In fact now the transactions by
the DDO’s with the treasuries are cash less transactions.

Q. Payment of pension at treasury:-

The payment of service pension is made by the T.O. concerned after the pension
payment order is issued by the A.G. and is received by the T.O. upon which the
concerned pensioner has opted to receive his pensioner benefits. There are two portions
issued by the A.G.
3. Treasury portion and 2. Pensioners portion
The treasury officer’s pension half will be entered into pension payment register.
The separate registers are maintained by the T.O. for service, political and compensation
pensions etc. these registers must be kept by T.O. under his custody. In case the retired
G/S has exercised his option for commutation of pension the A.G. will issue the authority
on treasury for making payment of commuted value of pension.
After the commuted portion is paid, both the portions of the original pension
payment order along with voucher for the commuted value need to be returned to A.G.
4. Service pension:- The term service pension means a pension payable to a G/s on
his superannuation.
3. Political pension:- means a pension which is not a service pension and is
granted to a pensioner on political considerations or compassionate grounds or in
consideration of distinguished or meritorious service.
93

Register of Pension Payment order:- The treasury shall maintain a register of pension
payment orders in form TC-26 which the T.O. has to keep in his office and the same
register will serve the purpose of index to the files of orders. After verifying that the
entries have been correctly recorded in the register, the T.O. will append his dated
initials. Both the portions of pension orders are returned to the A.G. after the death of the
pensioner or for application of transfer from one district treasury to another district
treasury. On the receipt of intimation regarding the death of pensioner, a speedy or
prompt action shall be taken by the T.O. to record the fact in the register and on the
treasury portion of PPO. In case of a pensioner whose pension is made by Money order,
the necessary note shall be kept on the both portions of PPO. Pension which is granted
not for life but is subject to certain conditions that is when a class of pension is to cease
because of marriage or because of attaining a given age or specified age or under other
special circumstances these pensions shall not be entered in the register. When the
pensioner appears at the treasury for receiving or claiming his payment of pension his
personal identification mark should be checked by the T.O. and his signatures should be
compared with the signatures already recorded in the treasury. If the pensioner can’t
sign, his thumb impression needs to be compared with the thumb impression already
recorded with the treasury on the treasury half of the PPO. Except in case of female
pensioner who may not appear in the public. The DDO may make the payment to the
female pensioner on the strength of the resemblance between the pensioner and her
photograph pasted on the disbursers half. Pending the final reconciliation of any doubt
which may arise regarding the identification mark of the female pensioner, The pensioner
drawing pension for the 1st time is required under rules to produce the copy of order by
which the sanction to his pension was communicated to him. The T.O. has to satisfy
himself regarding the identification of the pensioner. If any payment takes place due to
the wrong identification, the T.O. is personally responsible for the wrong payment on this
account. In case of illiterate pensioners, Parda nasheen ladies, acquaintance by seal
mark attested by some known and respectable person or gazetted officer may be accepted
in lieu of Thumb impression. In case where the pension is drawn through the authorized
agent personal appearance of pensioner is not necessary even in the 1 st occasion. Special
risks of fraud exist in the payment of pension of a female pensioner, Therefore special
94

care should be taken for identification of such cases. The descriptive roles already
prepared and the periodical certificates of her existence should be attested by two or
more respectable persons of her locality.
The claims for payment of pension shall be presented on the bill in a form FC-16, a copy
of which is required to be supplied by the disbursing officer to the pensioner. The bill
must be duly received by the pensioner or some other person authorized to give
acquittance on behalf of pensioner. In case of female pensioner whose pension is
terminable in their marriage, the certificate in form FC-17 should be obtained. The
declaration in the form-18 shall be obtained half yearly from the woman pensioner whose
pension is terminable by their marriage and should be attached to the pension bills for
the month of December and June. A certificate of non employment in form FC-16 should
be signed by all the pensioners.
The payments on account of pension are entered in the both portions of pension
payment order (PPO) and duly attested by treasury officer. The entries shall also be
made in the concerned pension payment registers. The payment of pension may be made
by the postal money order and at the option and expenses of pensioner. The pensioner
who too exercises the option to receive the pension by postal money order should present
a declaration to the treasury officer to this effect. The T.O should compare the signatures
on the money order receipts every month with the pensioner’s signatures on the pension
payment order(PPO).
Where due to old age or physical disability it is not possible for a pensioner
to present himself in person to the T.O. the pension can be paid to him in such a case
either by money order or through authorized person, in case such authority is duly
verified and vetted by a magistrate. In this case a certificate from a medical authority is
also required.
The T.O. is also required under rules to obtain periodical verification certificate
of pensioners.
A pension remaining undrawn for more than one year shall cease to be paid by
T.O. However if the pensioner afterwards appear for receiving pension or a claim is
presented on his behalf, the treasury officers may make the payment but arrears can’t be
paid without prior sanction of the pension sanctioning authority. If the pension remains
95

undrawn for three years in case of service pension and six years in case of political
pension, it can’t be paid without the authority of A.G.
A gratuity payment order shall remain in force for one year and if not paid by
the treasury within one year, the authority needs to be sent back to A.G. for its
revalidation. The payment of arrears in case of death of a pensioner may be paid to his
legal heirs including the date of death on surrendering of pensioners half, provided the
claim is made within one year from the date of death. After the payment of arrears is
made, the PPO shall be returned to A.G. specifying therein the date of death of
pensioner. Payment of pension and all other pensionery benefits to retired Army
personnel’s shall be disbursed on the authority of controller defence accounts (Pensions)
Allahabad.

CASH BOOK TO BE MAINTAINED AT TREASURY:-

The complete cash account transactions and book transfers should be kept in all the
treasuries in form TA-1. The said book is maintained in two parts. Receipt part and
payment part . separate accounts are maintained for the transactions of centre Govt.
Every item of receipt or payment as well as adjustments by transfer should be entered in
subsidiary register called “Madwar” in form TA-02, TA-03. As soon as the transaction
occurs and numbered in series in each register (Madwar). The daily totals from these
subsidiary registers will appear in cash book. The adjustments by transfers should be
recorded separately from cash transactions. In case of receipts received from the revenue
or other offices by postal money orders and adjusted by the post offices by book transfer
with the treasuries. The entries in this regard may be made in the subsidiary registers
daily in lump under each detailed head of account. When the receipts of the department
are liable to frequent refunds. they may be entered in a special register TA-20,prescribed
for revenue deposits. So that whenever refunds are made these can be quite conviently be
made against the original credits.
Register of Adjustment between central and state Governments:- Separate records of
deductions made from the bills and vouchers which effort the central or state
Governments, i.e. pay bill debted to the revenue of the state containing deductions on
account of postal life insurance. Income tax etc creditable to the central Govts. Should be
maintained at treasuries in two separate cheque registers.
 96

Q. What is Hundi and when it lapses , specify the cases in which hundi can be issued ;
1. Without charging premium.
2. After charging premium.
Ans. Hundi is just like a bank draft or cash order issued by one treasury upon another
treasury in J & K to pay the specific amount of to a specified person. There are in fact
four parties in the issue of a Hundi . e.g. The D C food and supplies department has to
remit Rs. 2.00 lacs as advance for procurement of paddy to Assistant Director food and
supplies baramullah through a Hundi to be issued by T.O. additional Treasury Srinagar
on T.O. Baramullah. The DC Food and supplies is called REMITTER, the Assistant
Director food and supplies Baramullah is Payee, The T.O Additional Treasury is
DRAWER and the T.O. Baramullah is Drawee.
As regards lapses of Hundis these lapse by the end of year following the year in which
the Hundi is issued. Every T.O is required under rules to send a lapsed hundi statement
to the A.G. every year at the close of year.
Hundis can be issued at par that is without charging any premium in the following
cases:
1. When a G/S has to remit money in his official capacity that is to say the D.C. Food and
supplies Srinagar has to remit Rs.2.00 lacs as an advance for paddy procurement to
Assistant Director Baramullah.
2. When a DDO headquartered at a District Headquarter has to remit pay of his staff
posted at Tehsil headquarters that is the chief agriculture officer Srinagar has to remit
the pay of Agriculture staff posted at any far off place.
3. When an office of the PWD has to remit money in the interest of public service to an
outstation within J & K that is Executive Engineer Irrigation division Srinagar has to
remit some money for payment of land compensation to a land lord residing at a far off
place within Srinagar District.
4. When one Co-Operative society has to remit money to another Co-Operative society at
any outstation.
5. When Hundis have to be issued in relation to any department of the central Government
in public interest.
Hundi can be issued at premium in following cases:
 97

1. When a landlord has to make payment on account of land revenue at an outstation, the
Hundi shall be issued after charging premium of 50 paisa per hundred subject to a
minimum of Rs.1/=
2. When a private person or firm or a quasi commercial concern has to obtain Hundi, it is
issued after charging premium of 50 Paisa.
3. Hundi in favour of Govt. Employees of Ladakh and Kargil may be issued by Leh and
kargil Treasuries at a premium of 25P per 100.

J & K
Government
Employees
98

(Conduct)
Rules 1971.

Q. 1. To whom J & K employees (conduct) rules shall apply to and to whom these are
not applicable?
Ans. i, J & k employees conduct rules shall apply to every person appointed to a civil
service or post in connection with the affairs of the state.
ii, These rules for the employees in public sector undertakings which are entirely
financed by the Govt. i.e. where the whole capital is invested by the state, the activity of
the employees should be restricted in the same manner as for those working directly
under Government.
Iii, A Govt. employee whose services are placed at the disposal of a company,
corporation, organization or a local authority by the Govt. shall for the purpose of these
rules be deemed to be a Govt. employee serving under the govt. notwithstanding that his
salary is drawn from sources other than from the consolidated fund of the state.
99

Iv, Nothing in these rules shall apply to a member of All India Service who is subject to
the All India Service (conduct) rules 1954 and a holder of any post in respect of which
the Govt. may by general or special order direct that these rules shall not apply.

Q. Define the term “ Members of family” in terms of J & K Employees conduct rules
1971?
Member of family in relation to a Govt. employee includes:-
a, The wife or the husband as the case may be of the G/S whether residing with the Govt.
Employee or not but but does not include a wife or husband, as the case may be
separated from the G/S by a decree or order of a competent court.
b, Son or daughter or step-son or step-daughter of the G/S and wholly dependent on him
but does not include a child or step-child who is no longer in any way dependent on the
G/S or of whose custody the G/S has been deprived by or under any law.
C, Any other person related, whether by blood or marriage to the G/S or the G/s’s wife or
husband and wholly dependent on the G/S.

Q. What is the General code of conduct laid down for a Government servant?
The general code of conduct laid down for a G/s is as under:
1. Every G/s shall at all times maintain absolute integrity and devotion to duty.
2. A G/S holding a supervisory post should take adequate steps to ensure the
integrity and devotion of all G/S’s for the time being under his control.
3. In performing of his official duties and in exercising his power the G/S should act
his best judgment while exercising his power except when he is acting under the
directions of his official superior.
4. The direction of the official superior should be in writing when it is most
practicable to obtain directions in writing . Oral directions given should be got
confirmed in writing immediately thereafter.
5. A G/S who habitually fails to perform the task assigned to him within the time set
for the purpose and with the quality of performance expected of him shall be
deemed to be in lacking in devotion to duty.
100

6. A G/S should not evade his responsibilities by seeking instructions from or

approval of a superior officer or authority. When such instructions are not
necessary under the scheme of distinction of powers and responsibilities.
7. A G/s is expected to maintain a reasonable and decent standard of conduct in his
private life. In case where a G/S is reported to have acted in a manner
unbecoming of a G/S as for instance, neglect of his wife and family, departmental
action can be taken against him on that without invoking any of the conduct rules.
Rule 30 of the J & K Civil services (Classification, control and appeal) rule 1956
specifies the nature of penalties that may for good and sufficient reasons be
imposed on a G/S. Neglect by a G/S of his wife and family in a manner
unbecoming of a G/S may be regarded as good and sufficient reason to justify
action being taken against him.
8. No G/S shall employ any child below the age of 14 years for domestic work . in
case it is proved that a G/S has acted in breach of this rule . it shall amount to
misconduct attracting a major penalty.
9. No G/S shall indulge in any act of sexual harassment of any woman at her
workplace. Every G/S who is in charge of a work place shall take appropriate
steps to present sexual harassment to any woman at such work place. A sexual
harassment “ includes such sexually determined behavior, when directly or
otherwise, such as:-
a, Physical contracts and advances.
b, Demand and request for sexual favors.
c, Showing any pornography.
d, Any other unwelcome physical, verbal or non-verbal conduct of a sexual
nature.

Q. Explain the term “gift” as per J & K employees (conduct) rules? In which cases a
G/S or a member of his family can or can’t accept the gifts?
Ans. The expression “gift” shall include free transport, boarding, lodging or other
services or any other pecuniary advantage. When provided by any person other than a
near relative or a personal friend having no official dealings with the G/S.
101

A casual meal, lift or other social hospitality shall not be deemed to be a gift.
A G/S can or can’t accept the gift on the following occasions:-
i. A G/S shall avoid accepting lavish hospitalities or
frequent hospitality from any individual having official
dealings with him or from industrial or commercial
firms, organizations etc.
ii. On occasions such as weddings, anniversaries,
funerals or religious functions, when the making of gift
is conformity with the prevailing religious or social
practice, a G/S may accept gift from his near relatives
but he shall make a report to the Govt. if the value of
any such gift exceeds the amount specified in the
conduct rules.
iii. Similarly on said occasions mentioned in Para ii above
a G/S may accept gift from his personal friends having
no official dealings with him but he shall make a report
to the Govt. if the value of such gifts exceeds the
amount specified in the conduct rules.
iv. In any other case a G/S shall not accept any gift
without the sanction of the Govt. if the value exceeds
the amount specified in conduct rules.
v. No Govt. employee shall except with previous sanction
of Govt. receive any complimentary or farewell address
or accept any testimonial or attend any meeting or
entertainment held in his honour or in honour of any
other Govt. employee. Provided that nothing in the rule
shall apply to a farewell entertainment of a
substantially private character held in honour of a
Govt. Employee on the occasion of his retirement or
transfer of any person who has recently quit the service
of any Govt. or the acceptance of simple and
102

inexpensive entertainment arranged by public bodies or

institutions.
vi. No Govt. Employee shall use his position or influence
directly or indirectly to secure employment for any
member of his family in any private undertaking. No
class ist officer shall except with the previous sanction
of the Govt. permit his son, daughter or other
dependent to accept employment in any private
undertaking with which he has official dealings or in
any other undertaking having official dealings with the
Govt. provided that when the acceptance of the
employment cannot await prior permission of the Govt.
or is otherwise considered urgent, the matter shall be
reported to the Govt. and the employment may be
accepted provisionally subject to the permission of the
Govt.
vii. A G/S shall as soon he becomes aware of the
acceptance by the member of his family of an
employment in any private undertaking, intimate such
acceptance to the prescribed authority and shall also
intimate whether he has or has had any official
dealings with that undertaking.
viii. No Govt. employee shall deal with any matter or award
any contract to any undertaking or any other person if
any if any member of his family is employed in that
undertaking or under that person or if he or any
member of his family is interested in such matter or
contract in any other matter and the Govt. employee
shall refer every such matter or contract to his official
superior and the matter of contract shall thereafter be
103

disposed off according to the interactions of the

authority to whom the reference is made.
ix. No Govt. employee shall award contract to any member
of his family or to any other person or Benami basics or
to someone whom the Govt. employee has reason to
believe is connected or has a share interest with a
member of his family.
Q. Subject to what terms and conditions an employee / member of service association
of Govt. Employee can collect subscription from employees?
Ans. A G/S even in his capacity as a member of any service association can’t collect
funds on behalf of the association without prior permission of the Govt. Neither the
constitution of the association which may envisage collection of funds nor the fact that it
has been registered as a trade union under law which permits trade unions to raise funds,
gives any immunity to a Govt. employee in the matter. General permission has however
been granted in relaxation of the rule to collection of subscription by a Govt. employee
who is a member of service association of Govt. employees from amongst its other
members, if
i. The association has been and continues to be recognized by the Govt.
ii. The proceeds are proposed to be utilized for welfare activities of the
association, &
iii. When a matter affecting the General interests of the member of the
association is in dispute and it is permissible under the rules of the
association to spend its funds over such a matter.
When however, action is taken against a Govt. servant who happens to be a
member of the association in his personal capacity (or grounds which concern
in particular) no funds should be collected even among its members by the
association for his defence. Approach to the members of the public for
collecting funds without prior sanction of the Govt. is not permitted.

Q. Describe in brief speculation? Can a Govt. Employee speculate in any stock, share
or other investments, discuss?
104

OR
What are the rules which govern the speculation by a Govt. Employee in investment,
lending and borrowing?
Ans. Speculation means mediation, in other words speculation means a person who buys
and sells in the hope of a rise or a fall in prices. Frequent purchase or sale or both of
shares, securities and other investments shall be deemed to be speculation.
i. No Govt. employee shall speculate in any stock, share or other investment.
ii. No Govt. employee shall make or permit any member of his family or any
person acting on his behalf to make any investments which is likely to
embarrass or influence him in the discharge of his official duties.
iii. Except in the ordinary course of business with a bank or a firm duly
authorized to conduct banking business, no Govt. employee shall either
himself or through any member of his family or any other person acting on his
behalf:-
a. Lend or borrow money (as principal or agent) to and from any person
within the local limits of his authority or with whom he is likely to have
official dealings. Or
b. Lend money to any person at interest etc. provided that a Govt.
employee may give to or accept from a relative or a personal friend a
purely temporary loan of a small amount free of interest or operate a
credit account with a bonafide tradesman or make an advance of pay to
his private employee. Provided further that nothing in Para iii, shall apply
in respect of any transaction entered into by a Govt. employee with the
previous sanction of the Govt.

Q. What rules govern J & K employees (conduct) rules in respect of property returns of
an employee regarding movable, immovable and valuable property?
Ans. 1. Every Govt. employee shall on his first appointment to any service or post and
thereafter as prescribed intervals, submit a report of his assets and liabilities in the
prescribed form giving the full particulars regarding :-
105

a. The immovable property inherited by him or owned or acquired by him or held by

him on lease or mortgage either in his own name or in the name of any member of
his family or in the name of any other person.
b. Shares, debentures, cash including bank deposits inherited by him or similarly
owned, acquired or held by him.
c. Other movable property inherited by him or similarly owned, acquired or held by
him like jewellery, motor cars, cycles or any other means like T.V. refrigerator,
cameras, laptops, mobile phones etc.
d. Debts and other liabilities incurred by him directly or indirectly.
e. These returns shall not ordinary apply to class-iv employee.
1. No Govt. employee shall except with the previous knowledge of the prescribed
authority, acquire or dispose off any immovable property by lease, mortgage,
purchase, sale, gift or otherwise either in his own name or in the name of any
member of his family. Provided that the previous sanction of the prescribed
authority shall be obtained by the Govt. employee if any such transaction is with
the person having official dealings with the Govt. employee or such transaction is
otherwise than through a regular or reputed dealer.
2. Every G/s shall report to the prescribed authority every transaction entered into
by him either in his own name or in the name of his family member in respect of
movable property if the value of such property exceeds Rs.500/= in case of class I
and II posts or Rs.750/= in case of G/S holding class III and class IV post,
provided that the previous sanction of the prescribed authority shall be obtained
if any such transaction is with a person having official dealings with the G/S or
such transaction is otherwise than through a regular or reputed dealer.
3. The Govt. or the prescribed authority may at any time by general or special order
require a G/S to furnish within a specified period a full or complete statement of
such movable and immovable property held or acquired by him on his behalf or
by any member of his family as may be specified in the order, such statement shall
include the details of the means by which or the source from which such property
was acquired.
106

4. The following instructions have been issued by Govt. in respect of property

returns:-
i. Property returns should be submitted in the prescribed form within the
month of his first appointment and subsequently the 15 th January every
year in respect of the property held at the end of previous calendar year to
the prescribed authority.
ii. The property returns should be treated as secret documents and after
scrutiny be kept under the custody of prescribed authority. They should
not however be filed with character rolls.
iii. The sanction of the competent authority under rule 14.20 of J & K
Financial code vol. I, for the sale of a car or other conveyance purchased
with advances from Govt. before repayment of the advance together with
interest can’t be deemed carry with its permission under J & K employees
(conduct) rules. So separate sanction under J & K financial code & J & K
employees (conduct) rules should be taken by a Govt. Employee when the
sale of conveyance is made.
iv. Transactions regarding movable and immovable property require
previous sanction of the prescribed authority, seeking ex-post facto
sanction under the rules in effective and the rules should, therefore, be
strictly enforced.
v. The expression,” property owned or acquired” includes also properties
which stand in the name of other persons but in which the Govt. employee
has partial or full ownership.
vi. The declaration of property should be in respect of all properties
including those situated outside the state.

Q. Can a G/S engage directly or indirectly in any trade/business or undertake any other
employment during leave or active service?
Ans. No G/S whether on leave or active service, shall except with the previous sanction
of the Govt., engage directly or indirectly in any trade or business or undertake any other
employment. Provided that a Govt./Employee may without such sanction undertake
107

honorary work of a social or charitable nature etc subject to the condition that his
official duties do not thereby suffer, but he shall not undertake or shall discontinue such
works if so directed by the Govt. Canvassing by a Govt. employee in support of the
business or insurance agency, commission agency owned or managed by his wife or any
other member of his family shall be deemed to be a breach of this rule.
1. Every G/S shall report to the Govt. if any member of his family is engaged in a
trade or business or owns or manages an insurance agency or commission
agency.
2. No Govt. Employee except his official duties shall without the previous sanction
of the Govt. take part in the registration promotion or management of any bank or
other company which is required to be registered under the companies act or any
other law for the time being in force or any co-operative society for commercial
purposes.
Provided that a G/S may take part in the registration, promotion or management of a
co-operative society substantially for the benefit of the Govt. employees registered
under the co-operative societies act or any other law for the time being in force or of
a literary scientific or charitable society registered under the societies registration
act or any corresponding law in force.
3. No Govt. employee may accept any fee for any work done by him for any public
body or any private person without the sanction of the prescribed authority.

Q. Can a G/S participate with the press or other media?

Ans. 1. No G/S shall except with the previous sanction of the Govt. own wholly or in part
or participate in editing or management of any newspaper or other periodical
publication or electronic media.
2. No G/S shall except with the previous sanction of the Govt. or of the prescribed
authority,
a. Publish a book himself or through publication house or contribute an article or a
compilation of articles. Or
b. Participate in a radio broadcast or electronic media or contribute an article or
write a letter to a newspaper or periodical either in his own name or anonymously or in
108

the name of any other person. Provided that no such sanction is required if such
publication is through a publisher and is a purely literary, artistic or scientific character
or if such contribution, broadcast or writing is of a purely literary, artistic or scientific
character.
3. No G/s shall discuss or criticize in public or in any meeting of any association or body
any policy pursued or action taken by the Govt. nor shall he in any manner participate to
any such discussion or criticism.

Q. Can a G/S take part in politics or anti secular and communal activities?
Ans. 1. No a G/S shall take part in politics or anti secular and communal activities or
subscribe in aid of any political party or any organization engaged in anti-secular or
communal activities or assist in any way any political movement in the state or in any
other part of India or relating to the affairs of the union or the state.
1. No G/s shall permit any person dependent on him for maintenance or under his
care or control to take part in, or in any way assist, any movement or activity
which is, or tends directly or indirectly to be subversive of Govt. as by law
established in India or in the state.
2. A G/S may for the purpose of removing misapprehensions and correcting
misstatements defend and explain to the public the policy of Govt. but he may not,
save as provided in rules, make any communication to the press in regard to the
policy or acts of the Govt. without the sanction of the Govt. or such other
authority as the Govt. may subscribe. In taking such action, the G/S should ask
for as possible, refrain from making any reference to the personalities of parties
or individuals who may be in opposition to the Govt.
3. No G/S shall canvars or otherwise interfere with or use his influence in
connection with or take part in any election to any legislature or local body or
parliament.
Provided that a G/S who is qualified to vote at such election may exercise
his right to vote but where he does so, he shall give no indication of the manner in
which he prepares to vote or has voted.
109

Q. In which cases a G/S can’t criticize the policies of Govt. through India?
Ans. No G/S shall in any radio or T.V. broadcast or in any document published in his
own name or in the name of any other person or in any communication to the press in
any public utterance make any statement of fact or opinion:-
i. Which has the effect of an adverse criticism of any current or recent policy or
action of the Govt. of India, Govt. of J & K or any other state Govt.
ii. Which can embarrass the relations between the Govt. of J & K and the Govt.
of India or the Govt. of any other state in India.
iii. Which is capable of embarrassing the relations between the Govt. of India or
the Govt. of J & K and the Govt. of any foreign state.
Provided that nothing in this rule shall apply to any statements made or views
expressed by a Govt. employee in his official capacity or in due performance
of the duties assigned to him.
Q. Subject to what conditions a Govt. employee can be a member of service association
representing Govt. employees?
Ans. No Govt. servant shall be a member of any association representing Govt. employee
or any class of Govt. employee unless such association satisfies the following conditions,
namely;
a. It has been recognized by the Govt. and the recognition continues to subsist.
b. Membership of the association is confined to a distinct class of Govt. employees
of that class.
c. The association is not in any way connected with or affiliated to:
i. Any association which does not, or
ii. Any association which does not satisfy conditions in (a) & (b) above
d. The association shall not in any way be connected with any political organization
or engaged in political activity or any other organization in which a G/S can’t be
a member under these rules.
e. The association shall not issue or maintain any periodical publication except in
accordance with any general or special order of the Govt. the association shall
not except with the previous sanction of the Govt. publish any representation on
behalf of its members while in the press or otherwise.
110

f. The association shall not pay or contribute towards any expense in respect of any
election to the legislative assembly or to local bodies. It shall not support to any
person for such election.

Q. What does “Strike “means in Govt. Employees conduct rules? Can a G/S take part
in demonstrations and Strike?
Ans. In J & K Govt. employee conduct rules “ strike” means a refusal to work or
stoppage or slowing down of work by a group of employees in combination. Strike
includes:
i. Mass absence from works without permission.(which is wrongly described as
mass casual leave)
ii. Refusal to work overtime when such overtime work is necessary in the public
interest.
iii. Practices like “go-slow”, “sit-down”, “pen down”, “ stay in” “token”
Dharma, Hunger strike or any other similar strike, absence from want for
participation in Bandh etc. Govt. servants who resort to action of the kind
mentioned above violate rule 20 (ii)of the conduct rules and disciplinary
action can be taken against them.
No Govt. employee shall engage himself or participate in any demonstration which is
pre-judicial to the interest of the sovereignty and integrity of India. The security of state,
friendly relation with foreign state, public order, morality or which involves contempt of
court, defamation or incitement to an offence.
No Govt. employee shall resort to or in any way abet any form of strike in connection
with any matter pertaining to his service or the service of any other Govt. employee.

Q. Can a Govt. employee contract another marriage? It so subject to what terms &
conditions? What is the procedure for dealing with application seeking permission for
another marriage?
111

Ans. No Govt. employee who has a wife living shall contract another marriage without
obtaining the permission of the Govt. Notwithstanding that such subsequent marriage is
permissible under the personal law for the time being applicable to him.
No female G/S Shall marry any person who has a wife living without first obtaining the
permission of the Govt.
Procedure for dealing with applications seeking permission for another marriage or
seeking permission to marry a male G/S having a wife living is as under:-
a. Whether such marriage is permissible under the personal law applicable to the
applicant and if so.
b. Whether there are sufficient grounds satisfying a departure from the normal
policy of Govt.
c. Whether alleged grounds are true and well founded.
d. Whether wife has joined the application whether she has willingly consented and
e. Whether any communication claiming to proceed for the wife is genuine.
f. Where the first wife’s views have not been stated, they should ascertain if
possible.
g. If permission is sought on grounds of alleged sickness of wife, detailed
information should be obtained in consultation with medical authorities.
h. Arrangements made by the husband for his wife’s maintenance should be
ascertained and examined whether they are satisfactory.
i. The case should be referred to the General departments together with the result of
the enquiry conducted.

Note:- Any Govt. Employee found guilty of any anti-secular activity or of activities
tending to create communal disharmony shall be liable to dismissed from the state
service.
112

Financial code
By

Accountancy Training Institute

113

Srinagar

Compiled By: M A LONE