06 (79-85)

CHAPTER VI

Directions regulating the Exhibition of Losses in Government Accounts

INTRODUCTORY

79. The directions in this chapter shall regulate the exhibition and adjustment of losses in Government Accounts.

RECEIPTS

80.(1) If a claim be relinquished, the value of the claim shall not be recorded on the expenditure side as a specific loss.

ഒരു ക്ലെയിം ഉപേക്ഷിക്കുകയാണെങ്കിൽ, ക്ലെയിമിന്റെ മൂല്യം ഒരു പ്രത്യേക നഷ്ടമായി ചെലവ് ഭാഗത്ത് രേഖപ്പെടുത്തില്ല.

(2) If money due to Government has actually reached a Government servant and is then embezzled, stolen or lost even though it may not have reached the treasury and thus have passed into the Consolidated Fund or the Public Account, it should be brought as a receipt into the Consolidated Fund or the Public Account, as the case may be, and then show on the expenditure side by record under a separate head as a loss.

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Note 1—The term ‘Government servant’ used in clause (2) of this Article includes persons who, though not technically borne on a regular Government establishment, are duly authorised to receive money on behalf of Government.

Note 2—Where losses of public money are wholly or partially met by non-issue of pay or pension and the Account Department authiorisedly applies the unissued amount to meet the public claim, the resultant balance of the claim alone should be treated as a loss, the emoluments due being debited to the pertinent പ്രസക്തമായ head of account as if they had been drawn and used by the Government servant concerned in paying the public claim.

Q1. If a claim be relinquished, the value of the claim;
(A) Shall be written off
(B) Shall be recorded as a specific loss
(C) Shall be deducted from revenue
(D) Shall not be recorded on the expenditure side as a specific loss.

Correct Answer Option :(D)

Q2. If money due to Government has actually reached a Government servant and is then embezzled, stolen or lost before crediting to Consolidated Fund, what is the procedure to be followed?

(A) Should be brought as a receipt into Consolidated Fund and then shown on the expenditure side under a separate head as a loss

(B) The matter should be reported to police for investigation

(C) The loss should be booked under “Suspense” pending realization of that money

(D) “The transaction need not be brought to account until the loss is made good

Correct Answer Option :(A)

Q3. How pay or pension to an employee or group of employees is treated if such amount of pay or pension is not issued to the concerned employees and the account department authiorisedly applies the unissued amount to meet a loss of a public money?

A:-The amount of pay or pension to the extent unissued to the employee or group of employees shall be accounted as loss

B:-The un-issued emoluments due shall be debited to the pertinent head of account as if they had been drawn and used by the Government

servant concerned in paying the public claim

C:-The un-issued emoluments shall be kept under suspense account

D:-None of these

Correct Answer Option :(B)

Q4.  How is the loss of public money accounted in cases where the loss is partially met by non-issue of pay or pension to an employee or group of employees and the accounts department authorised applies the unissued amount to meet the public claim?
A:-The entire claim shall be treated as loss
B:-No amount can be treated as loss
C:-The resultant balance of the claim alone should be treated as loss
D:-None of these
Correct Answer:- Option-C

BUILDINGS, LANDS, STORES AND EQUIPMENTS

81. Losses or deficiencies need not be recorded under a separate head in the accounts, though they should be written off any value or commercial account that may be maintained. If any transactions under these categories are recorded under a Suspense head in the Government accounts, losses or deficiencies relating thereto must be written off the Suspense heads also.

CASH IN HAND, WHETHER IN TREASURIES OR IN DEPARTMENTAL CHARGES

Note—1. The acceptance of counterfeit coins or notes shall be regarded as a loss of cash.

Note —2 .Any recovery made in the course of the year in which the losses are brought to account shall be shown by deduction from the head under which the loss is recorded. Any recovery made after the accounts of the year are closed shall be shown as an item of receipt.

 

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Local Rulings under Article 82.—(1)

A loss of cash which is written off under the orders off a competent authority should be debited as a contingent charge of the department concerned. No distinction should be made between a loss affecting a service head and a loss affecting a debt or remittance head except as regards losses on remittance of coin, which should be debited to “Account with the Reserve Bank of India”, and irrecoverable loans and advances granted under Chapter X of the Kerala Financial Code, which, when written off under proper authority, should be debited to ‘2075-00-795.Miscellaneous—Irrecoverable temporary loans and advances written off’.

A loss of cash due to acceptance of counterfeit coins or notes and any amount transferred from the treasury balance in order to make good any deficiency found in the currency chest, should be debited under the head ‘Advances Repayable’ pending recovery or orders to write it off. Any amount which the Government finally order to be written off as irrecoverable on account of any such loss should be adjusted in the State accounts under the head ‘2075-00-795- Miscellaneous— Miscellaneous and unforeseen charge—Miscellaneous’.

Local Rulings under Article 82.—(2)

In case of loss, misappropriation, embezzlement, etc., where a claim once drawn has to be re-drawn for the purpose of disbursement to the claimants, the amount re-drawn should be debited to the head “Special Advances” under “T. Deposits and Advances—Part III advances not bearing interest—Departmental Advances”, with the specific sanction of the Government, pending investigation of the loss, fixation of responsibility and finalization of the action for recovery. Any amount subsequently recovered may be credited to the head “Special Advances”. If the balance under “Special Advances” is found irrecoverable and is ordered to be written off, it should be adjusted as a loss under the relevant service head with the sanction of the Government.

The amount re-drawn will be booked under the detailed head of account “Advance for the re-drawals and disbursement of amounts of losses, misappropriation etc.,” opened under “Special Advances”. When any amount so re-drawn is finally written off as irrecoverable, it should be debited to a distinct detailed head “Losses” under the Service Head concerned.

Q1. In the accounts, all losses of deficiencies should be recorded under

(A) Separate heads

(B) Publications

(C) Depreciation

(D) Other charges 

Correct Answer Option :(A)

Q2. A loss of cash which is written off under the orders of a competent authority should be debited as a .................of the department concerned.

(A) Establishment Charges

(B) Unforeseen Expense

(C) Office Expense

(D) Contingent Charge

Correct Answer Option :(D)

Q3. The acceptance of counterfeit coins or notes shall be regarded as:

(A) Irregular payments

(B) Unusual payments

(C) A loss of cash

(D) Inevitable loss

Correct Answer Option :(C)

Q4. A loss of cash which is written off under the orders of a competent authority should be debited as a................of the department concerned.

(A) Establishment Charges

(B) Unforeseen Expense

(C) Office Expense

(D) Contingent Charge

Correct Answer Option :(D)

Q5. A loss of cash due to acceptance of counterfeit coins or notes finally order to write off should be adjusted under the head.

(A) Misc- Misc and Unforeseen Charge -Misc

(B) Deduction in expenditure

(C) Suspense

(D) None of the above

Correct Answer Option :(A)

Q6.Any amount which the Government finally orders to be written off as irrecoverable on account of any loss of cash due to acceptance of counterfeit coins or notes should be adjusted in the State Accounts under which head?

A:-Suspense

B:-Deduction in expenditure

C:-Miscellaneous - Miscellaneous and unforeseen charge

D:-None of these

Correct Answer: (C)

Q7. Any recovery made after the accounts of the year are closed shall be shown as:

(A) A revenue receipt

(B) A deduction in receipt

(C)An item of receipt

(D)A minus entry on the payment side

Correct Answer:(C)

Q8. Any recovery made after the accounts of the year are closed shall be shown as _______?

A:-Deduction from the head under which the loss is recorded

B:-As suspense account

C:-As an item of receipt

D:-None of these

Correct Answer:(C)

Q9. Any recovery made in the course of the year in which the losses, are brought to account shall be shown:

(A) By deduction from the head under which the loss is recorded

(B) Deduct expenditure on the payment side

(C) As expenditure on the receipt side

(D) As on item of advance

Correct Answer: (A)

Q10.  In case of loss, misappropriation, embezzlement etc., where a claim once drawn has to be re-drawn for the purpose of disbursement to the claimants, the amount re-drawn should be accounted with the specific sanction of the Government as ________?

A:-An expenditure under the relevant head

B:-Debit to the head “Special Advances” under “Deposits and Advances-Part III- advances not bearing interest”

C:-Written off as loss

D:-None of these

Correct Answer: (B)

Q11.  In cases of misappropriation, where a claim once drawn has to redrawn for the purpose of disbursement to the claimants, the amount redrawn should be debited to the ....................with the specific sanction of the Govt. pending investigation.

(A) Same head of account

(B) Head Special Advance under Deposits and Advances -Part III. Advances not bearing interest

(C) Contingency Fund

(D) (A)or(C)

Correct Answer: (B)

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IRREGULAR OR UNUSUAL PAYMENTS

83. Irregular or unusual payments should be recorded in the accounts with the general reference to the ordinary rules of classification according to the nature of the expenditure; for example, an over payment of pay shall be debited to the head ‘Pay’. Similarly, an excess payment for bricks manufactured shall be debited to the work for which the bricks are used. It is only when special heads exist in the accounts for recording such charges, as compensations for damages, irrecoverable temporary loans written off and the like, that unusual or extraordinary payment shall be separately recorded.

Q1.  Irregular or unusual payments should be exhibited in accounts:

(A) As advance payments subsequently recoverable

(B) Against 'suspense' accounts

(C) Against miscellaneous

(D) According to the nature of the expenditure

Correct Answer: (D)

Q2.  An overpayment of pay shall be debited to the head

(A) Salaries

(B) Irregular

(C) Unusual

(D) Miscellaneous

Correct Answer: (A)

Q3. In which case unusual or extraordinary payments are to be recorded separately in the accounts ?

(A) When special heads exist in the accounts for recording such charges

(B) When it is so required by Government 

(C) When it is decided to exhibit them distinctly

(D) When it is required by the Treasury Officer

Correct Answer: (A)

INEVITABLE LOSSES

84. Where losses are an inevitable feature of the working of a particular department, the major head of account under which the expenditure of that department is recorded shall contain separate descriptive heads under which such losses may be recorded.

നഷ്ടങ്ങൾ ഒരു പ്രത്യേക വകുപ്പിന്റെ പ്രവർത്തനത്തിന്റെ അനിവാര്യമായ സവിശേഷതയായിരിക്കുമ്പോൾ, ആ വകുപ്പിന്റെ ചെലവുകൾ രേഖപ്പെടുത്തപ്പെടുന്ന പ്രധാന അക്കൗണ്ട് ഹെഡിൽ അത്തരം നഷ്ടങ്ങൾ രേഖപ്പെടുത്താവുന്ന പ്രത്യേക വിവരണാത്മക ഹെഡുകള്‍ ഉണ്ടായിരിക്കും.

Q1.  The directions regulating the exhibition of losses in Government accounts in the case of inevitable losses are contained in
(A) Article 80 of KAC Vol I
(B) Article 82 of KAC Vol I
(C) Article 83 of KAC Voll
(D) Article 84 of KAC Vol I
Correct Answer: (D)


Q2.  When losses are inevitable feature of a department, it is recorded under:
(A) Separate head
(B) Suspense head
(C) Major head of that department, contain separate descriptive heads
(D) Detailed head of the department
Correct Answer: (C)

EXHIBITION OF LOSSES IN 

APPROPRIATION ACCOUNTS

85. The rules relating to the exhibition of losses in the Appropriation Accounts are contained in the instructions issued by the Comptroller and Auditor-General for the preparation of those accounts.

Q1.  The rules relating to the exhibition of losses in the Appropriation Accounts are contained in the instructions issued by the ..........for the preparation of those accounts.

(A) Comptroller and Auditor General

(B) Finance Ministry

(C) Central Board of Direct Taxes

(D) None of the above

Correct Answer: (A)

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