Administration Manual - B.E.S.T. Undertaking.

Gratuity:
The gratuity payment to the ex-employees is initially
accounted under General Administration Division and at the
time of closing of books of A/c, it is allocated to all three
division as per number of staff member retired from each
division.
After accounting all such entries from Receipt/Payment
day book, Journal/transfers, Balance appeared under the
each Journal Ledger A/c are taken into account for monthly
trial balance which reflects total receipts and receivable and
total payments & payable amounts. From this trial balance,
a summarized position in the prescribed format as approved
by BEST Committee and Corporation is prepared which is
known as `Abstract’ for a particular month.
4.3. Annual Accounting
i) Outstanding Creditors Provision:
143
Before finalizing the annual accounts it is essential that all expenses pertaining
to the financial year, are reflected in the working account of that year under
appropriate heads of the expenditure, even though it is unpaid or not covered
under the Budget grant. For this purpose Accounts Department is issuing the
circular to all heads of the Department, by drawing their attention to the
forthcoming closing of the account and direct them to process all bill vouchers of
outside parties as well as for their department. If the bills are not obtained from
the contractor, the outstanding Creditor provision is required to be forwarded to
the Accounts Department and to that effect Account Department prepares JE, by
debiting various heads of expenditure and crediting to the Outstanding Creditors
Account. The said Outstanding Creditors Account is carried forward in the next