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

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made by debiting Motor Vehicle (Third Party) Insurance Control Account
i.e. 1905 till limit of Rs. 20 lakh is exhausted. Therefore all such
expenses are debited to Third Party Insurance Control A/c 1905. At the
time of closing of Book of Account provision account is debited and
control account is credited. Motor Vehicle (Third Party) Isurance is
charged by debiting to expenditure account of all three division and
crediting to contribution to Motor Vehicle (Third Party) Insurance Fund
Account (separate Current A/c is maintained in Bank of India). Motor
Vehicle (Third Party) Insurance Fund is created vide BCR No. 1451 dated
28/3/61 & CR.No. 384 dated 13/10/61 whereas Third Party Insurance
Fund is created vide BCR No. 978 dated 23/1/50 and CR.No. 1829 dated
27/2/50.
(xv) Obsolesce of Stores -
This is a non-statutory fund and source of this fund is based in quantum of
obsolesce of Stores by debiting fund to the value of item forwarded to the scrap yard
and credited to the sale proceeds. The fund is mainly utilized for writing of book
value of absolute and unserviceable stores if no amount is utilized after every 5 years,
balance of the fund is transferred to the Revenue A/c. The fund is created vide BCR
No. 262 dated 17/6/77 and CR No. 749 dated 8/9/77.
xvi) Expenditure towards Internal Transport, Telecommunication Group
Insurance Premium :
In the Undertaking there is an Internal Transport
Officer Establishment . This Establishment is looking after
the R & M work of Motor Vehicle including Petrol, Fuel, oil,
consumed by M.V. etc. During the year expenditure
pertaining to various activities carried out by this
establishment is booked and at the time of closing of Books
of Accounts, this expenditure is allocated to General
Administration Engg., Supply and Traffic and Traffic
Division based on number of vehicles allotted to each
Division is also capitalized.