CONTRACTORS’
LEDGER Para 1483 E
Form E.
1483 CONTRACTORS LEDGER
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Contractor's Ledger
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Accounts relating to
contractors should be kept as personal accounts in Contractors' ledger
( form E-1483 shown below) and a separate folio should be opened in the
Contractors' Ledger for each contractor. The accounts of each contractor should
exhibit all transactions with him, whether relating to one or several works or
to materials purchased from him or supplied to him. The Contractors' Ledger
should show the number and amount of each passed bill and certificate, briefly
naming the work and the number and amount of the cheque. The amount of advance
granted to a contractor as well as the value of material made over to the
contractor against items for which he is paid the labour and material rates
should be debited to his account and a receipt for the value thereof taken from
him in respect of the debits.
The Contractors' Ledger should be posted as bills are paid and it should
be closed and balanced monthly. A copy of his account in the ledger may be
furnished to any contractor who wants it. Stores supplied to works under
execution by contract should be accounted for as follows :-
(i) when the contract
is for labour only, by a direct charge as stores to the work to which it is
issued.
(ii) when the contract is
for both labour and materials, as a debit to the contractor, the cost of stores
as prescribed in para 1269 being either recovered in cash or debited to the
Contractor’s account for subsequent recovery by deduction from the amount due
to him for work done, in these cases an unstamped acknowledgement of the
receipt of the material should be taken from the contractor.
It is normally maintained
agreement wise or contract wise depending whether the work is special work or
zonal work which is maintained only in respect of works contracts.
Separate pages are generally
opened for each work order or agreement. On the top of each page details of
name of work, work order number, date and value and period of completion of
work etc.
Every time a bill is passed for
payment, the ledger accounts in respect of the particular work order is
credited with the gross value of the work or supply. On the debit side of the
recovered towards Security Deposit , income tax, postage and other recoveries
towards materials or penalties and net
amount payable to the contractor. Both the debit and credit sides are balanced.
Incase of certain special works
on the Open Line and project works, the ledger account is also debited with all
the values of material supplied by the railway to the contractors and as and
when the same are utilized on the work, corresponding credits are afforded. The
balance shown the value of material got to be used by the contractors.
In cases where advance payment to
have been made to the contractors, the same should be debited to the ledger accounts
adjusted and when payments are made.
The ledger accounts will be
reviewed periodically to see that there is no undue delay in the execution of
works or supplies against the different work order contained in the ledger.
Details of work orders not complied
with up to the date of review should also be made out. The concerned executives
should be addressed in the matter for remarks.
Dates of commencement and
completion of the work and the Measurement Book No and folios should also be
mentioned in each ledger accounts.
The postings in the ledger should
be of an accumulative type (sometimes inner columns for posting the current
bills and outer columns for cumulative balance) that any time the gross amount
of charges of the work or supply , total amount paid to the contractor total SD
recovered, total Income Tax recovered during the year etc can be extracted.
This ledger is put up along with every bill to the AO for
signature.
Extracts of the ledger can be
given to the contractor on some nominal payment.
Contractors bills:
These are three types ie petty contract bills, running or on
account bills and final bils.
Petty contract bills or First and Final Bill is
prepared where the single payment is
involved for the work or supply completed.
Running or on accounts bills are prepared in contact work
(not supplies for which suppliers bills are used) towards part completion or stage completion
of the works.
Final bills are prepared for making final payment when the
running account of the work is closed finally.
A hand receipt or a bill towards advance payment is used whenever some
advance is paid to the contactor.
Check of contractors bills
- These bills are prepared in the prescribed railway forms for different types of bills.
- The bills are initially prepared in AXEN /ADEN offices for the Civil Engineering Dept and in respective executive offices of other Depts.
- They are prepared with reference to the measurement recorded in the respective MB duly applying the rates shown either in the work order or agreement.
- The bills are signed by both the contractor and the AXEN/ADEN/Executive officers
- These are submitted along with the MB to the Divisional Office in Triplicate
- The Divisional Office will verify the MB as well as the accuracy of the bill and submit the same in duplicate (original and duplicate) to the concerned accounts officer for check
- Wherever there is a DA/WA is attached to the executive offices, the MB are checked by her/him and all the quantities mentioned in the bills.
- In such a case in the accounts office, the rates and arithmetical accuracy of the bills are checked with reference to the work order or agreement.
- Bills found to be in order are then passed for payment duly entering in the respective contactors ledger.
- Payments are made only thru crossed cheques and sent to the contractors addresses by Registered Post with Acknowledgment Due. Now thru RTGS, EFT and NEFT to ensure transparency and quick transfer.
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