GOVT. ACCOUNTING AND BOOKS

GOVERNMENT ACCOUNTS,
1. Governed by the requirements of the constitution and instructions of parliament through its committees,
2. Purpose is to determine as to how as little money as possible may be taken from the tax payer to maintain the activities,
3. There must be a systematic record of all receipts and expenditure classified appropriately,
4. Generally kept on a single entry system,
5. Maintained on cash basis,,
6. Statement of receipts and expenditure is only prepared,

COMMERCIAL ACCOUNTS
1. Governed by standard accounting practices and conventions and the law of the land such as company law, income tax law etc
2. Purpose is to show how as much can be earned as possible consistent with the requirement of the business
3. There should be a record of the usage of capital, profit/loss source of profit/loss and indication about the solvency of the company
4. Maintained on double entry basis
5. Maintained in accrual basis
6. Trading accounts, manufacturing account, profit and loss account and balance sheet are prepared

STRUCTURE OF GOVT. ACCOUNTING
PART I
CONSOLIDATED FUND OF INDIA
It is governed by Article 266 of constitution of India All receipts and expenditure both h on capital and revenue accounts are accounted for. In addition, loans and advances to Govt employees are accounted
REVENUE
Deals with the proceeds of taxation and other receipts classified as revenue and expenditure there form Rlys: The traffic receipts form the main source of revenue and working expenses are the main revenue expenditure
CAPITAL
Deals with expenditure met with the object of increasing the assets. Rlys: Capital, DRF, DF, OLW-R & Capital Fund according to nature of assets and rules of allocation Block account prepared for all assets irrespective of the source of funds. Loan account reflects expenses charged to loan from General revenue - Capital
DEBT – PUBLIC DEBT, LOANS & ADVANCES
Rlys: HBA, Scooter advance, cycle advance, natural calamity etc both advances and repayment of loans and recoveries of advances

PART II
CONTINGENCY FUND OF INDIA
It is governed by Article 267 of constitution of India. It is operated to meet unforeseen expenditure pending authorization of parliament. It is under the disposal of the F C of Railway.
PART III
PUBLIC ACCOUNTS OF INDIA
It is governed by Article 268 of constitution of India. All receipts and expenditure both h on capital and revenue accounts are accounted for. In addition, loans and advances to Govt employees are accounted
DEBT (OTHER THAN IN PART I)
It consists of receipts and payments other than those under Debt heads pertaining to Part I. eg. PF, Reserve Fund,Security Deposits, EMD, Departmental advances
REMITTANCES
It merely embraces adjusting heads which appear transfer among different circles.
GENERAL and SUBSIDIARY BOOKS

GENERAL
1. The General Cash Book or The Daily Abstract Of Cash Transactions (Form A 304)
2. The General Cash Abstract Book or The Monthly Classified Abstract Of Cash Transactions (Form A 306)
3. The Journal ( Form, A 307)
4. The Ledger (Form A 310)
SUBSIDIARY
1. Register of Works
2. Registers of Capital, DRF, DF, Capital Fund and OLWR
3. Revenue Allocation Register
4. Register of Earnings
5. Suspense Registers
a. Demands Payable Register
b. Misc. Advance Register
c. “F” Loans And Advances Register
d. Deposit Misc. Register
e. Deposit Unpaid Wages Register
f. Demands Recoverable Register
Capital Suspense Registers(Stores & Workshop Suspense

DIFFERENCE BETWEEN GENERAL AND SUBSIDIARY BOOKS
GENERAL BOOKS
Monthly accounts are prepared from the postings made in the general books,
Only the voucher no and amount are posted in the general book,
Maintained to collect and bring into account the transactions of an accounts circle,
Are mainly meant t prepare accounts suiting the principles of Govt. accounting,

SUBSIDIARY BOOKS
Schedules accompanying account current are prepared from the ;postings made in the subsidiary registers ( e.g. details of earnings and working expenses and works expenditure)
Details of transactions are recorded in the subsidiary registers
Maintained to exercise control over expenditure of an accounts circle
Serves to keep accounts to suit the commercial principles of accounting