Departmental Compilation of Accounts

It may be mentioned first that the chapter relates to Departmental Compilation of accounts of the Govt. of India and Union Territories and not for purpose of the State Govts.
The Comptroller and the Auditor General is the authorised Auditor and Accountant of the Union Govt., the Union Territories and the State Governments us per our Constitution. Prom 1st April, 1976, he was relieved from the duty of maintaining the accounts of the Govt, of India and the Union Territories. He will act as an Auditor in case of the Central Govt., and Union Territories but in ease of the State Governments he would act as an Accountant and Auditor.
For the purpose of maintenance of accounts including compilation of accounts of the Govt. of India, each Ministry had opened their individual pay and Accounts Office which would make all payments after proper precheck. All payments including inter-depanmental and inter-governmental transactions are made by cheque.
Receipts and Payments of each ministry are made by the Reserve Bank of India or its authorised Bank. The Central Accounts Section of the Reserve Bank of India. Nagpur maintains Ministry-wise separate accounts.
The Reserve Bank of India or its authorised Banks handling transactions of various departments of the Central Government shall maintain separate accounts for each Ministry. An account of transactions is sent to the concerned Pay and Accounts Office of the Ministry following the day along with payment scrolls, challans and paid cheques. A reconciliation of the adjustment made in the books of Central Accounts Section during the month is carried out at the end of the month on the basis of consolidated statements of receipts and disbursements.
Compilation and Consolidation of accounts
Each Pay and Accounts Office compiles a monthly accounts of the transactions (receipts and Payments; showing its own accounts and those reported by the D.D.O. and Banks. The same are classified under Major, Sub-Major, Minor, Sub-head and Detailed heads by the P.A.O. who sends the same to Controller General of Accounts who prepares an consolidated accounts of the Central (civil) transactions as a whole. A copy of the monthly accounts is forwarded to the Ministry of Finance, Budget Division.
Each Principal Accounts Officer maintains a Ledger for Debt, Deposit. Suspense and Remittance head of accounts the balance of which are carried, forward from year to year. It is a very important function of the Principal Accounts Officer to review the balances periodically.