Purchase Accounts S 2809

PURCHASE ACCOUNTS

2809. Maintenance of Purchase Account Register.—Generally 'Purchases' are made first and 'Payments' follow. In order to record each transaction as it takes place, Purchase Account Register should be maintained head of account wise by the Stores Accounts Office in the from shown below :

                                                                                                                                                                        Form No. S. 2809

                                                                                                                                                                           ..............Railway

PURCHASE ACCOUNT FOR..............................................................................................
Name of Contractor and Address......................................................................

Sl  No.	AB No. or TC No. and Date	Debit Voucher No.	AT No. & date	Receipt Note No. & date	Receipt order No. and date	Inspection Note No. & date	RR No. & date
			order No. & date
1	2	3	4	5	6	7	8
.	.	.	.	.	.	.	.

Quantity	Rate	Opening balance		Month…….				AND SO ON
		Due to Vendors	Due to Vendors	Supplies	Payments	Balance
						Due to Vendors	Due to Vendors
9	10	11	12	13	14	15	16	17
.	.	.	.	.	.	.	.	.

Purchase Account Registers should have separate pages reserved for transaction of each firm or contractor and should be provided with sufficient columns to record details continuously for three years in case of suppliers whose contracts run for more than one year at a time or who are known to have frequent and regular dealings with the Stores Department. Where space permits, the same page may be used for more than one A.T. or Order, enough spacebeing left between two A.Ts or Orders for the number of payments likely to be made on each A.T. or order. In respect of suppliers whose contracts are not expected to run beyond a year, and whose dealings with Railways are frequent a smaller size of register may be used which provides columns for only twelve months {i.e. one financial year). The Purchase Accounts Registers should be chronologically numbered for a financial year, and should be capable of being identified by the year and serial number of the Register. After checks prescribed in paragraph 2807 have been applied the Receipt Notes, Receipt Order Number, Railway Receipt No. and date, Quantity, rate and value of supply should be entered in the Purchase Account Register as a credit to the account of the supplier. Reference to the Register No. and the page number of the Purchase Account Register should be quoted on each receipt Note at the same time. When the bills for stores supplied is received from the supplier, it should, before being passed for payment, be checked against the credit in the Register, and if the amount billed for is found to agree with the credit, the same should be entered as a debit against the entry of credit. Differences, if any, should be immediately investigated and rectified. No bill should be passed for debit to 'Purchases, unless the corresponding credit already appears in the Register except in case of advance payments to firms authorised to receive such advance payments.

Note.— For hundred per cent supplies, Purchase Account Registers may, if considered, convenient, be maintained depotwise in the serial order of the Receipt Note without allotting a separate page for each supplier. All the particulars prescribed in form S. 2809 should be posted in this form for each entry. If the items are not likely to get cleared within the same year, the register may be designed to accommodate 2 years transaction to save tune in carrying over of Balances.

Object:

With a view ot bring ino account, the value of stores received and for which payments are yet  to be made, the Suspense Head “Purchase” is brought into use. The value of such stores credited to the Head to be cleared by debit when payments are made.

Certain companies of commercial standing are permitted to get 90%, 95%98% 1005 payment of the value of stores dispatched after inspection by submitting the bills duly supported by the Railway receipts.

Full advance payment is made in the case of certain producers and controlled stockists. 

Such payments are debited to the Purchase Accounts in advance of credits.

Reasons for unlinked credit/debit:

Insufficient details - of stores received thru the Ministry of Supply other Govt Depts, other railways – purchased difficult to link.

Posting credits without linking with outstanding debits on account of advance payment made to the companies which are permitted to get advance payments on the authority of railway receipt for stores dispatched to railways

Due to difference in debits received for payment by

     a.Pay and Accounts Officer – PAO- of Ministry of Supply

     b.Other Govr Dept

             c.other railways and the value at which stores are accounted for by the receiving depots.

Delay in receipt of receipt notes Part III

Delay in accountal of suppliers against advance payments

System improvement: How to keep Purchase Accounts free from irregularities

1.each item is posted individually in the accounts of the company concerned with complete details

a. Receipt Order No and Date

B.Serial Order No and Date

C. Railway Receipt No and Date

D. Railway Order No and Date

e.AT No and date

f. items thru Ministry of Supply No and date

2.amount  of each bill is entered as debit against the entry of credit, the difference if any is investigated and rectified immediately.

3.debits received from other Depts are linked with relevant credit items and for the difference if any, adjustment receipt orders are called for from the depot receiving stores.

4.credit entries in the receipt of which payment have been made or debits posted against them are not subsequently scored out or transferred to any other phase without specific orders.

5.all items are correct and are for bills payable for articles received or value of supplies for which payment is outstanding.

6. there are no debit items except for advance payments and if there is any, suitable action should be taken which should be recorded in the register against the item concerned.  

7.Test Check review by supervisory staff- to see the register correctly totaled, balanced and reconciled. It is ensured that none of the outstanding credit/debit items posted in the register could be linked with corresponding credit/debit items appearing in the Purchase Register.

8.The registers are maintained efficiently

9.the outstanding items of above Rs 10000/- and Rs 100000/- are noted in a separate registers for immediate action for clearance – to be frequently reviewed by section officer /Senior Accounts Officer.

☺☺☺