CONTENTS - Central Public Works Department

SECTION 11
credit is afforded by the local bank in lieu of the draft should be entered in the “Cash” column on the
payment side, and the amount of collection charges charged by the local bank should be accounted
for as “Contingencies” in the “Cash” column of the payment side. The amount credited by the local
bank should also simultaneously be shown on the receipt side in the “Bank” column.
(2) In respect of the issue of bank draft for making payment to the contractor, the amount of the bill as
well as deduction should be accounted for all in the usual manner in the “Cash” column, and the
net amount of the bill for which the bank draft is issued should be taken in the “Cash” column of the
receipt side.
(3) Where the draft is issued in favour of other Divisions for financing purposes or for payment to
contractors, the amount of draft should be shown on receipt side in “Cash” column, and
simultaneously as payment on payment side in “Cash” column, the latter being classified as
“Transfer between PW Officers”.
(4) The Divisional Officer receiving the RBI draft will enter the transaction in the cash book and will
classify it as “Transfer between PW Officers’ on the receipt side of the “Cash” book instead of as
RBI remittances.
11.6 Accounting and clearance of transactions relating to RBI drafts
The Divisional Officer should send a monthly statement of RBI drafts in Form CPWA 77B, reproduced
as Annexure. The total amount of the draft will be shown in Form CPWA 80 after the existing entry Form
CPWA 77. The clearance of these transactions would be effected and watched by Accounts Officer.
11.7 Accounting of expenditure on works
The expenditure incurred on “Works” and “Tools and Plant” (“Machinery and Equipment”) will be
classified under Head “PAO Suspense” for eventual adjustment by Pay and Accounts Officer, Ministry of
External Affairs, under the Budgeted head of account.
11.8 Accounting of expenditure on Establishment
The expenditure on “Establishment” including that on “Contingencies” will be initially classified under
“2059 Public Works”, but at the close of the financial year, it will be transferred from that Head to “PAO
Suspense” for eventual adjustment with the Pay and Accounts Officer of Ministry of External Affairs.
11.9 Cash balance with the local bank - Reconciliation statement to be prepared
(1) The amount in the “Local Bank” is to be treated as “Cash” for all purposes and shown as such in
Form CPWA 80. The detailed break up of the closing cash balance will be given as under:
Part I Cash in hand.
Part II Amount of Imprest/Advances.
Part III Balances in the Local Banks.
(2) The balances in the local bank will be supported by a reconciliation memo in the form reproduced
below:
Reconciliation memo of balance with the local bank
Amount ....................................................................................................................................................
Balance with local bank as per Pass Book ...........................................................................................
Less: Cheques issued but not encashed (A) .......................................................................................
Add: Amounts deposited in the local bank
but not accounted for in the cash book (B) .................................................................................
Balance with the local bank as per Cash Book
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