Short Notes on Accounts – I

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  • #74392
    Anonymous
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    Finance Act
    The Finance Bill containing the annual taxation proposal is considered and passed by Legislature only after the Demand for Grants have been voted and total expenditure is known.

    #74384
    Anonymous
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    Major head
    The main unit of classification of accounts is the major head i.e. Function of the Govt. which may be divided into Sub-Major heads for the purpose of various function of the Govt.

    #74430
    Anonymous
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    Finance Account
    As soon as accounts of the year are closed the Finance accounts of each Govt. are prepared and the same is submitted to the President/ Governor as the case may be by the C.A.G. in each year. All transactions relating receipts and outgoing for the year including financial results disclosed by the revenue and capital accounts, the accounts of Public Debts, liabilities and assets have been shown in the account. There are two parts viz. summarized statement and detailed accounts.

    #74431
    Anonymous
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    Proforma Account
    Some departments of Govt. include undertaking and quasi-commercial character are performing commercial nature of duties. They are maintaining commercial nature of accounts to ascertain manufacturing, Profit & Loss accounts as subsidiary to Govt. accounts. There additional book of accounts are usually kept on proforma basis in consultation with C.A.G. outside general accounts by which the financial position of the said organisation may be ascertained.

    #74432
    Anonymous
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    Journal and Ledger
    Govt. accounts are maintained in single entry system and the double entry system will be applied only in regard to maintenance of a set of technical accounts called the Journal, Ledger and Trial Balance Sheet. The said accounts are maintained when Govt. acts as banker/ remitter/ borrower/lender for the purpose of verification of balances brought out in the double entry system.

    #74433
    Anonymous
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    Vote on account
    Pending normal procedure of passing Budget and Appropriation Bill by the House of people in time Parliament has the power to authorise by law to withdraw money from Consolidated Fund of India for a period within which time Appropriation Bill is passed so that Govt. may make expenditure from 1st April. Vote of accounts is nothing but an authority to incur expenditure from 1st April till regular budget is passed.

    #74481
    Anonymous
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    Contingent Liabilities
    Under Article 292 and 293 of the Constitution of India, the Union and the State are empowered to give guarantees in respect of loans raised by others within such limit as may be fixed from time to time by Act of Parliament or the Legislature of the state, such guarantees constitute contingent liabilities of Government.

    #74482
    Anonymous
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    Revenue Deficit
    The revenue deficit of the state indicates the excess of its revenue expenditure over revenue receipts. The existence of revenue deficit indicates that revenue receipts of the state are not sufficient enough to meet its revenue expenditure and Government have to resort to borrowings to meet even its current obligations. The increasing tendency of revenue deficit indicates the lack of financial management in resource mobilization in revenue sector.

    #74483
    Anonymous
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    Fiscal Liabilities
    Fiscal Liabilities constitute those liabilities discharged by the Government to repay the borrowings, which are made upon the security of its Consolidated Fund, to repay the money received in behalf of other authorities or other Governments, the borrowing from Small Saving, Insurance and Pension Funds etc.

    #74484
    Anonymous
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    Fiscal Deficit
    The deficit in Govt. accounts represents the gap between its receipts and expenditure. The nature of deficit is an indicator of the prudence of fiscal management of the Govt. Fiscal deficit is the gap between total receipt and total plan and non-plan expenditure of the Govt. on both revenue and capital account.

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