Formats

4.13 Accounting Procedure
1) The accounts are prepared on cash basis i.e. a transaction is only
recorded when cash is received or paid.
2) Period of accounts is a financial year as a period of 12 months from
1 st April to 31st March ending of next year.
3) Daily transactions shall be recorded in Cash Book.
– The receipts are recorded on receipts side and payments on
payments side.
– Every day the cash book shall be closed and Closing Balance
worked out would then form the Opening Balance for next day.
– Classification / head of account for each transaction shall be
clearly mentioned.
4) Every day the details of transactions as recorded in the cash book.
– Transferred to Register of Receipts if the transaction is receipts
– Transferred to Register of Payments if it is payment.
Daily transactions recorded will be transferred automatically either
to register of receipts or to register of payments.
5) At the end of the month total of receipt and payment up to object
head should be shifted to monthly receipts and payment register.
(Format – I)
6) The monthly figure added to month’s progressive total and figures
upto end of the current months can be worked out in the consolidated
abstract register in (Format – II).
7) Bank Reconciliation:
– At the end of the month the bank and treasury reconciliation
should be completed.
– Differences between cash book, bank and treasury balances are
to be rectified.
– Corrections should be made then & there in the Register of
Receipts and Register of Payments.
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