FINANCIAL ADMINISTRATION

CASH BOOK
RECORDS ALL TRANSACTIONS
DIVIDED INTO TWO SIDES
LEFT FOR RECEIPTS OF CASH
RIGHT FOR PAYMENTS
EACH SIDE HAS TWO COLUMNS
CASH AND BANK TRANSACTIONS
CASH DEPOSITED/WITHDRAWN FROM BANK
ENTERED IN BOTH COLUMNS
‘TO’ BEFORE DEBIT/’BY’ BEFORE CREDIT
 CASH BOOK Contd.

BALANCED AND CLOSED DAILY

SIGNED BY A GAZETTED OFFICER
BALANCE CASH KEPT IN SAFE CUSTODY
CASH COL. BALANCE CHECKED WITH CASH
BANK COL. BAL CHECKED WITH PASS BOOK
 PETTY CASH BOOK

COMPRISES A/C OF PETTY CASH IMPREST

IN THE NATURE OF PERMANENT ADVANCE
NOT TO EXCEED M/AVE. OF 12 M CONT EXPDR
TO BE FIXED ON CONSERVATIVE BASIS
TO BE REVIEWED AS PER NEED
TO MEET CONTINGENCY EXPENDITURE
ADVANCED TO BE RECOUPED TWICE A MONTH
PETTY CASH BOOK BALANCED EVERY MONTH
 ACCOUNTING FOR PAYMENTS
VOUCHER PREPARED ON RECEIPT OF
SUPPORTING DOCUMENTS
VOUCHERS SERIALLY NUMBERED
ENTERED ON PAYMENT SIDE OF CASH BOOK
DATE OF CHEQUE IS THE DATE OF ENTRY
CASH PAYMENT IN CASH COLUMN
CHEQUE PAYMENT IN BANK COLUMN
VOUCHER NO.,CHEQUE NO.,NAME OF PAYEE,
HEAD OF ACCOUNT, LEDGER FOLIO TO BE
MENTIONED
 INTERNAL CONTROL

CONTINUOUS CHECKING AND MONITORING OF

TRANSACTIONS
MUST ENSURE FIN RULES AND ORDERS OBSERVED
TOTAL EXPDR WITHIN BUDGET PROVISION
COMMITMENTS/LIABILITIES TO BE KEPT IN VIEW
ADMIN APPROVAL FOR NECESSITY OF EXPDR
EXPDR SANCTION OF COMPETENT AUTHORITY
INTERNAL CHECKS BEFORE PAYMENTS

NO PAYMENT TO BE MADE W/O VALID DOC/ INVOICE

UNIT RATE IN INVOICE VERIFIED WITH PO
AMOUNT CLAIMED VERIFIED BY MULTIPLYING UNIT RATE WITH
QTY
TOTAL OF INVOICE CHECKED BY ADDING EACH ITEM OF INVOICE
VERIFY TERMS AND CONDITIONS FULFILLED
IN CASE SUPPLIES, ENSURE ENTERED IN STK REGISTER
GOODS RECEIVING OFFICER TO CERTIFY QLTY & QTY
VOUCHERS TO BE STAMPED AND CANCELLED AFTER PAYMENT TO AVOID DUPLICATE PAYMENT
CHECK TA/DA CLAIMS FOR LATE SUBMISSION
ENSURE AGAINST SECOND ADVANCE
ENSURE CONTRACT AGREEMENT EXISTS BEFORE PAYMENT OF CONTRACTUAL REMUNERATION
VOUCHERS TO BE SERIALLY NUMBERED AND KEPT
NO PAYMENT W/O EXPDR SANCTION OF CA
STOCK REGISTERS FOR CONSUMABLES

DRUGS,LAB CONSUMBALES, ETC

RECEIPTS ENTERED IN ‘RECEIPTS’ COLUMN
REGISTER PAGE NO. GIVEN ON VOUCHERS
VOUCHER REFERENCE GIVEN IN REGISTER
ISSUES ENTERED IN ‘ISSUES’ COLUMN
ISSUES ONLY ON DUE AUTHORIZATION
I/SLIP REF GIVEN IN STOCK REGISTER
REGISTER FOR FIXED ASSETS

ALL FIXED ASSETS ENTERED

VALUE OF INDIVIDUAL ASSETS TO BE NOTED
YEARLY PHYSICAL VERIFICATION TO BE DONE
DISCREPANCIES REPORTED FOR ACTION
 FIXED ASSET REGISTER

DETAILS OF EACH ASSET TO BE SHOWN:

NAME & DESCRIPTION
DATE OF RECEIPT
SUPPLIER’S NAME
COST OF ITEM
GUARANTEE PERIOD DETAILS
ASSET IDENTIFICATION NUMBER
LOCATION OF THE FIXED ASSET
USER(S) RESPONSIBLE FOR CUSTODY
DISPOSAL/WRITE-OFF DETAILS
 EXPENDITURE CONTROL REGISTER

EXPENDITURE CONTROL REGISTER TO HAVE:

BUDGET ALLOCATION UNDER HEADS

PROGRESSIVE EXPENDITURE
GUARDS AGAINST EXCESS/SHORT EXPDR
EXPDR TO BE TO BE SPREAD TO AVOID RUSH
REGISTER OF SETTLEMENT OF AUDIT
OBJECTIONS

MAINTAINED SO AS TO NOT LOSE TRACK OF

PENDING AUDIT OBJECTIONS
ALSO SERVES AS A BOOK TO ADVISE ON
WHAT NOT TO DO
 REGISTER OF ADVANCES

ADVANCES TREATED AS ADVANCE UNTIL ADJ.

REMINDS OF ADVANCES TAKEN BUT NOT
SETTLED
PENAL INTEREST AND RECOVERY OF FULL
ADVANCE
HELPS WATCH RECOVERY OF UNSPENT BALANCE
ENSURES AGAINST MULTIPLE ADVANCES
Credit, Debit, Minus Credit and Minus Debit
All sums received are treated as credit, All sums paid
are treated as debit
Receipt of Income Tax wrongly classified as License
Fee, Wrong credit is withdrawn by minus crediting the
head License Fee and crediting Income Tax
Expenditure to be booked under head Travel Expenses
wrongly classified as salary – correction made by
debiting Travel Expenses and minus debiting salary
Suspense Account
Adjusting or Intermediate parking head pending final
accounting of transaction under relevant functional
heads
Clearance of initial credit or debit to the Suspense
Account done by minus credit and minus debit.
 JOURNAL

FOR RECORDING
TRANSACTIONS/ ADJUSTMENT
ENTRIES NOT INVOLVING
MOVEMENT OF FUNDS
 LEDGER

ALL TRANSACTIONS OF A KIND BROUGHT

TOGETHER
BOOK CONTAINING ACCOUNTS IS LEDGER
 BANK RECONCILIATION STATEMENT

MONTHLY BRS PREPARED BY 5TH NEXT MONTH

REFLECTS DIFFERENCE IN BANK STATEMENT AND CASH BOOK
DIFFERENCE MAY BE DUE TO FOLLOWING:
CHEQUES DEPOSITED BUT NOT CREDITED
CHEQUES ISSUED BUT NOT PRESENTED
BANK RECONCILIATION STATEMENT Contd.

EXCESS/LESS AMOUNT DEBITED/CREDITED

BY BANK
BANK INTEREST/BANK CHARGES NOT
ACCOUNTED FOR IN CASH BOOK
BOUNCED CHEQUES
DEBITS AGAINST STANDING INSTRUCTIONS
LIKE PHONE, ELECTRICITY BILLS ETC