Postal Accounts Manual Volume - I

1. “The Bank” means

a. Reserve Bank of India or any of its offices or branches
b. Any branch of the State Bank of India acting as the agent of the Reserve Bank
of India
c. Any other agency appointed by the Reserve Bank of India
d. All .
2. Revenue realizations and working expenses other than interest charges of the
Department are booked under the major heads
a. 1201-Postal Receipts
b. Deduct 1201-Postal Services
c. 1201-Postal Receipts and 3201-Postal Services .
d. None
3. The surplus or deficit in the working of the Department is appropriated to and
from the
a. Contingency fund of India
b. Posts and Telegraphs Capital Reserve Fund .
c. Posts and Telegraphs development fund
d. General Revenues
4. The primary accounts maintained by the Head Post Offices are
a. The Treasurer's Cash Book and the Head Office Summary
b. The Head Office Cash Book and the Head Office Summary
c. The Treasurer's Cash Book and the Head Office Cash Book
d. The Treasurer's Cash Book, the Head Office Cash Book and the Head Office
Summary .
5. The Cash Account is accompanied by
a. Cash Balance Report
b. Vouchers
c. Schedules
d. All
6. Each Head Record Office which forms an accounting unit in the Railway Mail
Service is responsible for submitting to the Circle Accounts Office concerned Bi-
monthly
a. Classified Cash Account
b. Unclassified Cash Account
c. Extract of transactions in the cash book .
d. A and C
7. The responsibility for the facts and figures contained in the materials for
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Finance Accounts furnished devolves on the
a. Secretary Ministry of Communications .
b. Director General Posts
c. Heads of the Circles
d. Director of Accounts Postal
8. Manuscript heads in the accounts may be opened by the
a. Directors / Deputy Directors of Accounts (Postal)
b. Heads of the Circles
c. A or B
d. Director General of Posts .
9. The transactions of the Department of Posts broadly fall under
a. Revenue Receipts and Working Expenses
b. Revenue Receipts, Working Expenses and Capital Outlay
c. Working Expenses and Capital Outlay
d. Revenue Receipts and Capital Outlay .
10. “Abstracts” is the technical name of the heads under the Major Heads 1201
Postal Receipts
a. Sub Major Head .
b. Minor Heads
c. Sub-Minor Heads
d. Detailed Head
11. The Chief Accounting authority in respect of the Department of Posts
a. The Secretary Department of Posts Ministry of communications .
b. The Director General Department of Posts
c. The Chief Postmasters Generals of the Circles
d. The Member Finance
12. Besides the compilation and consolidation of monthly and annual accounts
of the Department of Posts, the Secretary Department of Posts is responsible for
the preparation of the
a. Postal portion of the Combined finance and Revenue accounts
b. Annual Appropriation Accounts
c. A and B
d. None
13. The Deputy Director General (Postal Accounts and Finance) is responsible for
a. The professional efficiency of the accounts
b. Correctness of accounts
c. Correctness of Accounts procedure
d. All
14. The Branch Postal Accounts Office is divided into a number of sections and the
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General Accounts section comprises of
a. Postal Accounts Section, Pension Section and General Provident Fund .
b. Money Order, Indian Postal Orders and Post Office Certificates
c. Book and Remittance, Account Current
d. Establishment, Record Administration
15. The Branch Postal Accounts Office is divided into a number of sections and the
Technical Accounts section comprises
a. Postal Accounts Section, Pension Section and General Provident Fund
b. Money Order, Indian Postal Orders and Post Office Certificates .
c. Book and Remittance, Account Current
d. Establishment, Record Administration
16. The staff requirements for all the sections / groups should be worked out on
the basis of the average work of
a. Three continuous months from January to March of the year in which proposals
are made
b. Three continuous months from October to December of the year in which
proposals are made
c. Five continuous months from October to February of the year in which
proposals are made
d. Five continuous months from January to May of the year in which proposals
are made .
17. The primary accounting unit in the Department of Posts is
a. Head Post Office, Sub Post office and Branch Post office
b. Head Post Office and Sub Post office
c. Head Post Office and Mukhya dak ghar
d. Head Post Office .
18. The Postal Accounts Section in the Circle Postal Accounts Office is not
responsible for
a. Arithmetic check of the various schedules, Bills etc
b. Classification of unclassified receipts and payments and Checking of the
classification of establishment bills etc
c. Check of classification of pension Payments .
d. Check the accuracy and the regularity of the receipts and payments
19. The recoveries of overpayments whether made in cash or from payment
vouchers shall be posted direct under the service head concerned in the classified
abstract as reduction of expenditure if the overpayment pertaining to the
a. Current year
b. Any previous year
c. Current year and immediate preceding year

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d. A & B .
20. The head of account “Postage realized in cash” in the classified abstract
includes the amounts shown in the Cash Account against
a. Forward Postage
b. Letter Postage
c. Net amount of Letter Postage minus Forward Postage .
d. None
21. Bi-monthly Cash Accounts submitted by the Head Record Clerks of Railway
Mail Service Divisions and Sorting and Air Mail Office are classified and
incorporated in the
a. Classified Abstracts of the Head Post Offices concerned .
b. Separate Classified Abstracts
c. Detailed book directly
d. Classified Abstracts of Railway Mail service
22. Head Office Cash balance consists of
a. Cash and Postage Stamps
b. Stamps other than Postage Stamps
c. Revenue Stamps, Service Stamps
d. All .
23. The balances in hand shown in the Head Office Cash Accounts consists of
a. Cash, Postage Stamps and Stamps other than Postage Stamps
b. Revenue Stamps
c. Service Stamps
d. All .
24. Pre-check bills should ordinarily be disposed off by the Postal Accounts
section within (3.29)
a. Three days of their receipt .
b. Seven days of their receipt
c. A month
d. Three months
25. Short term advances are advances which are recovered in not more than (3.40)
a. Twenty four installments
b. Thirty six installments
c. Sixty installments .
d. All
26. The broadsheet is maintained for effecting reconciliation between the balances
of the following in respect of each month
a. Subsidiary register and Detailed Book .

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b. Abstract and Cash Account
c. Detailed Book and Classified abstract
d. Subsidiary register and Abstract
27. On receipt of Cash Account and Cash balance report from Head Post office the
Postal Accounts office prepares in the order of
a. Classified Abstract, Disbursers statement, Detail book and Circle Abstract .
b. Classified Abstract, Detail book, Circle Abstract and General Abstract
c. Classified Abstract and Circle Abstract and General Abstract
d. Classified Abstract and Circle Abstract and Detail book
28. General Abstract of Receipts and Payments is prepared by
a. Chief Postmaster General
b. Director of Accounts Postal
c. Director General of Posts .
d. Regional Postmaster General
29. The total amounts received and paid on all accounts is exhibited
a. General Statement of Disbursers Accounts
b. General Abstract .
c. A and B
d. None
30. The total amounts received and paid by all account officers is exhibited
a. General Statement of Disbursers Accounts .
b. General Abstract Para
c. A and B
d. None
31. Each Circle Postal Accounts Office should send the statement of net Receipt on
Account of Income Tax and Super Tax to the P.A. Wing of the Directorate
a. Annually .
b. Half yearly
c. Quarterly
d. Monthly
32. All transaction between the Postal department and the State governments,
Railways, Defence and other Departments of Central Govt. are settled through the
a. State Bank of India
b. Nominated Banks
c. Reserve Bank of India .
d. All
33. Inter-Government and Inter -Departmental adjustments and for proper
accounting of cash transactions taking place at a treasury Bank are done in the
Postal Accounts office by
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a. Book section
b. Account Current section .
c. P A section
d. Technical section
34. Director/Dy. Director of accounts (Postal) will send an advice for the net
amount due to or from each Civil, Railway or Defence Accounts officer, to the
Central Accounts Section of the Reserve Bank of India at Nagpur for adjustment
a. Weekly
b. Fortnightly
c. Monthly
d. Thrice a month .
35. Director/Dy. Director of accounts (Postal) will send an advice thrice a month
for the net amount due to or from each Civil, Railway or Defence Accounts
officer for adjustment, to the
a. Central Accounts Section of the Reserve Bank of India at Nagpur .
b. Director General of Posts
c. Concerned State / Central Govt. or Railway Deptt./ Defence Services as the
case may be
d. All
36. Postal Accounts Offices will receive debits for the supplies made and work
done by the stationery and Printing Offices at Calcutta and Delhi for adjustments
from the
a. Chief Pay and Accounts officers at Calcutta and Delhi
b. Respective Civil Accountant Generals
c. Director General of Posts
d. Controller General of Accounts
37. Charges debit-able to the department of posts for the cost of stationery supplied
and printing work done by the state Stationery Depots and State Government
presses will be passed to the Circle Postal Account Offices for adjustments, by the
a. Respective Civil Accountants General .
b. Controller General of Accounts
c. Director General of Posts
d. Director General of Posts
38. Inter Government and Inter-Departmental transactions are the transactions on
account of Postal Department arising
a. In the State Section and Central Section of the accounts of the Civil
Accountants General
b. In the Railway and Defence Accounts
c. With England

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d. All .
39. The amount shown in the ‘Review of Balance’ in respect of Post Office
Savings Bank represents
a. Net deposits on the 31st March of the year held in the Saving Bank inclusive of
the amount of interest credited to the depositors during the year
b. Net deposits on the 31st March of the year held in the Saving Bank exclusive of
the amount of interest credited to the depositors during the year
c. Net deposits on the 31st March of the year held in the Saving Bank inclusive of
the amount of interest credited to the depositors during the year and balances of
‘Silent Savings Bank Account’
d. Net deposits on the 31st March of the year held in the Saving Bank inclusive of
the amount of interest credited to the depositors during the year but exclusive
of balances of ‘Silent Savings Bank Account’
40. Transfer entries, which are entries, intended to transfer items from one head of
account to another
a. In order to correct an error of classification in the original accounts and to
adjust inter-departmental and other non-cash transactions
b. In order to adjust an item outstanding under a Debit, Deposit or Remittance
head
c. In order to classify items pertaining to more than one head of account, under a
single head of account in the first instance then to classify them under each
head of account
d. All
41. Erroneous classifications of Compensation for lost or damaged insured and
other articles and Writes-Off to "Profit and Loss" should be rectified by transfer
entries if the amount involved is
a. Rupee one .
b. More than Rs.10
c. More than Rs.100
d. More than Rs.500
42. Correction of errors in the accounts are not necessary if an item belongs to a
Revenue or Expenditure head, is wrongly classified under another Revenue or
Expenditure head when the
a. Accounts of the year are closed and Amount involved does not exceed Rs.10
b. Accounts of the year are not closed and Amount involved does not exceed
Rs.10
c. Accounts of the year are closed irrespective of the amount involved
d. All
43. Correction of errors in the accounts is necessary when the accounts of the year

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is not closed
a. If an item belongs to a Revenue or Expenditure head, is wrongly classified
under another Revenue or Expenditure head and the amount involved exceeds
Rs.10/-
b. If an item belongs to the receipts and disbursements of State Governments,
another Department including commercial departments of Central Government
or a Capital head outside the Revenue Accounts is wrongly classified under
Revenue or Expenditure head
c. Erroneous classifications of Compensation for lost or damaged insured and
other articles and Writes-Off to "Profit and Loss"
d. All
44. An error must be corrected by transfer however old and however small it may
be, if it affects
a. A Debt, A Deposit or Remittance head
b. Revenue or Expenditure head
c. Loans and advances head
d. All
45. "Settlement Account Abstract" will be maintained in the
a. Account current section
b. Money order section
c. Broad sheet section
d. Bank and Cash certificate section

46. "Settlement Account Abstract" will include all adjustments relating to Civil,
Defence and Railways and divided into
a. Divided into Two parts
b. Divided into Three Parts
c. Divided into Four parts
d. None
47. The main purpose of the Journal and Ledger is to bring out by a scientific
method the balances of accounts in regard to which Government acts as a
a. Banker
b. Remitter
c. Borrower and lender
d. All
48. The accuracy of the ledger postings should be tested annually after the closing
of the accounts for the March Final including supplementary adjustments by the
preparation of

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a. A Trial Balance Sheet
b. Net Profit and Loss Account
c. General Abstract
d. A and B
49. The preparation of the Trial Balance Sheet should be completed before the
submission of the
a. Appropriation Accounts
b. Review of Balances
c. Net Profit and Loss Account
d. March Supplementary Accounts
50. ‘Transfer of charges from 2016 – Audit and 2066 – pension and Other
Retirements Benefits to 355 Other Postal Services” is made
a. Monthly
b. Quarterly
c. Half yearly
d. Annually
51. The Department of Posts performs multifarious services which are not included
in its ordinary functions
a. Management of the Post Office Savings Bank, work in connection with
Government securities and Issue and discharge of Post Office Certificates
b. Collection of customs duty on postal articles
c. Management of the Post Office Insurance Fund and Payments of Military
pensions and subsistence advances
d. All
52. The Cost reimbursed by the Ministry of Finance of the Government of India for
managing the Savings Bank does not include
a. The actual cost of the work in the Circle Postal Accounts Offices and in the
Headquarters Office
b. Cost of Saving bank pairing work, cost of Savings bank development offices
and Cost of refresher’s course for SB/S.C. staff
c. The cost of supply of plastic covers and identity cards to small savings
depositors
d. B and C
53. The charges on account of the following are debited by the Government of
India Press, Nasik against the Accountant General Maharashtra for direct
adjustment against General Revenues
a. Printing Saving Bank cheque forms
b. Cost of printing Savings Certificates
c. Cost of stationary and printing in the office of the Director Postal Life

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 insurance
d. A and B
54. The total cost of remuneration for the work done on behalf of Customs
department should be adjusted by
The Directorate
Director of Accounts Postal Nagpur
All Directors of Accounts Postal
Director of Accounts Kolkota
55. The total cost of remuneration for the work done on behalf of Customs
department should be adjusted through
a. Reserve Bank of India
b. Reserve Bank of India and State Bank of India acting as the agent of the
Reserve Bank of India
c. Other agency appointed by the Reserve Bank of India
d. Proforma correction of balances outside Reserve bank books with an intimation
to the CGA for making the corresponding adjustment in his books
56. The total cost of the establishment of the office of the Director, Postal Life
Insurance debitable to the Post Office Insurance Fund includes
a. Administrative charges on account of pay and allowances of the Director (PLI),
Accounts officers
b. Cost of stationary and printing in the office of the Director (PLI) and
Contingent charges, including the cost of Furnishing and accounting machines
c. Postage and Telegrams, Cost of electric current and House rent on account of
accommodation
d. All
57. The cost of accounting for saving Bank Government Securities and Post Office
certificates work in the Postal Accounts Offices includes
a. Proportionate share of expenditure in respect of Medical treatments, L. T. C.
concession and Reimbursement of tuition fee
b. The share of the traveling allowances for inspection tours of Post Offices
c. A and B
d. None
58. Services for which inter branch adjustments at present made are
a. Telegraph share of combined office charges, Rent of joint buildings and
Repairs of Postal buildings carried out under the supervision of the Telecom
Department r
b. Trunk Telephone call fees debitable to Postal branch and Telephone
connections for Postal branch
c. Payment of pensions relating to pensioners belonging to the Telecom Branch at

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 Post Offices
d. All

59. The main items of work for which the pension Section of a Circle Postal
Account Office is responsible are
a. Verification of the service and issue of Enfacement Report or otherwise
b. Issuing the pension or gratuity payment orders
c. Checking of pension or gratuity and D.C.R.G. vouchers
d. All .
60. Each application for pensions and gratuities received in the % the Director
of Accounts should be examined to see that
a. The service has been duly verified and the qualifying and non-qualifying
services have been correctly entered
b. Uniformity of spelling as regards the name of the applicant has been adopted in
all the accompanying documents
c. The pension of the class applied for is admissible and that has been correctly
calculated
d. All .
61. The gratuity order should be called back from the Disbursing Officer
concerned for cancellation if it remained unpaid for more than
a. A month
b. Three months
c. Six months
d. A year .
62. The Provisional Pensions shall be sanctioned and paid by the Heads of the
Offices except in the case of Government servants
a. Permanent1y incapacitated for further service and entitled for Invalid Pension
b. Discharged on abolition of post and entitled for Compensation Pensions
c. Against whom departmental or judicial proceedings are instituted .
d. All
CHAPTER-X
SERVICE AND OTHER FUNDS G.P.F. ACCOUNTING
63. An alphabetical index of General Provident Fund subscribers should be
maintained and necessary entries made in this as soon as a serial number is
assigned (select) to a subscriber. The maintenance of the Alphabetical Index
Register may, however be dispensed with at the discretion of the (10.02/N-1)
a. Accounts Officer of the GPF section
b. Head of the Circle Postal Accounts office .
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 c. Head of the Postal Circle
d. Director General Posts
64. A subscriber to General Provident fund issues a notice in writing for
cancellation of the nomination but fails to furnish a fresh nomination along-
with the notice, the Account Officer should forthwith (10.04/N-2)
a. Cancel and returned the nomination to the subscriber .
b. Refuse the cancellation and return the notice
c. Take no action till a fresh nomination is furnished
d. Cancel and instruct the subscriber to furnish a fresh nomination
65. The authority for final payment of General Provident Fund Deposits is
current for (10.33/N-1)

a. Three months
b. Six months .
c. One year
d. Eighteen months
66. Fund subscriptions deducted from the pay bills in respect of the Gr. C as well
as Gr. B officers before they become eligible to subscribe to fund should be
(10.38)
a. Withdrawn and adjusted by transfer credit to objection book suspense .
b. Withdrawn and posted in the Explanatory sheet
c. Withdrawn and ordered for refund to the official
d. Condoned and new account opened
CHAPTER XI
CAPITAL ACCOUNTS
67. A new fund intended to finance a part of the capital requirement of the Posts
and Telegraphs Department constituted is known as
a. P&T Capital Reserve Fund
b. Telephone Development Fund
c. P&T Development Fund
d. None
68. The ‘Renewals Reserve Fund’ has been discontinued with effect from 1st April,
1970 and replaced by
a. Depreciation Account
b. Capital Reserve Fund
c. Revenue Reserve Fund
d. A and C
69. Interest is payable by the Central Govt. each year on the balances of the P&T
Revenue Reserve Fund at the rate prescribed by the Ministry of Finance on the
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 a. Closing balance in the fund for the previous year
b. Mean of the Opening and Closing Balances of the fund
c. Amount funded in the Revenue Reserve Fund during the year and the
advance taken from General Revenues
d. Closing balance in the fund for the year
70. In the Register of Special Charges, sanctions relating to the following need not
be noted
a. Issued by the Heads of Circle and higher authorities for amounts of Rs.500
b. Grant of honoraria to persons not in Government Service and Government
servants of the Department
c. Government servants of other Departments
d. Grant of honoraria to the civil surgeon/Doctors for medical examination of
the candidates at the time of appointment Exception below
71. The following payments required to be posted in the Establishment check
register
a. Reimbursement of Tuition Fees
b. Outstation Allowance Bills (Railway Mail Service) and Incentive Money &
Overtime A1lowance
c. Fixed house rent, ground rent and fixed contingencies
d. All
72. A register of permanent advances should be maintained to record Permanent
Advances paid to officers and
a. Advances made to Electric Companies or undertakings on account of
Security Deposits Note below
b. Deposits on account of the cost of Post Office Lock and key
c. Deposits on account Deposits Account system
d. All

73. The Register of Special Recoveries required to be maintained to watch the

recoveries on account of
a. Contract money or licence fees from professional letter writers and Motor
Mail contractors for the privilege of carrying mails and Recoveries of
amounts due, from private individuals on account of the cost of
experimental Post Offices
b. Interest bearing advances made to Electric Companies or undertakings on
account of Security Deposits
c. Recoveries of contributions on account of' leave salaries of Government
servants deputed to State Governments or other Departments of the Central
Government

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 d. A and B
Transfer Entries

A. Inter Departmental and Non-cash adjustments

I. Transfer entries are made periodically to adjust the Inter departmental

and non-cash transaction and to clear suspense head of account. Thus the
question of account of the year is closed or not and the method of adjustment will
be same even the accounts of the year is closed. The adjustment should be made
by operating direct Debit or Credit. In no case Deduct from credit or Deduct from
debit should be operated instead of Debit or Credit respectively.
II. A few examples of periodical adjustments entries made in the Postal
Accounts office are given below.

1. An amount of Rs.10000 on account of SB accounts treated as silent by the HPO

“x” is adjusted in the accounts.
Debit Rs.10000 – 8001 S B Deposits and Credit Rs.10000 – 8446 P & T Deposits –
Silent SB accounts
2. An amount of Rs.5000 on account of revival SB silent accounts is adjusted in the
accounts
Credit Rs.5000 - 8001 S B Deposits and Debit Rs.5000 - 8446 P & T Deposits –Silent
SB Accounts
3. An amount of Rs.10000 remained unclaimed under General Provident Fund for
more than 6 months adjusted in the accounts.
Debit Rs.10000 – 8005 GPF unclaimed deposit and Credit Rs.10000 – 8443 Civil
Deposits – Unclaimed deposits in GPF
4. An amount of Rs.10000 remained under deposits unclaimed General Provident
Fund for more than 3 years adjusted in the accounts
Debit Rs.10000 – 8443 Civil Deposits Unclaimed deposits in GPF and Credit
Rs.10000 – 1201 Postal Receipts –Other Items Lapsed Deposits
5. An amount of Rs.150000 adjusted on account of interest on GPF accounts
Debit Rs.150000 – 2049 Interest Payments- Interest on GPF and Credit Rs.150000 –
8005 GPF Deposits
6. An amount of Rs.25000 adjusted in April 2011 on account of Interest paid on
Savings Bank accounts
Debit Rs.150000 – 2049 Interest Payments- Interest on SB deposits and Credit
Rs.150000 – 8001 SB Deposits
7. An amount of Rs.25000 pertaining to IPOs sold and Rs.2000 on account of
commission thereon relating to January 2010 received in March 2010 is adjusted in

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the accounts.
Debit Rs.27000 – 8658 Suspense – Debit suspense and Credit Rs.25000 – 8446 Postal
Deposits – IPOs sold and Credit Rs.2000 – 1201 Postal Receipts – Commission on
IPOs
8. An amount of Rs.2500 on account of Money orders issued in November 2008
remained unclaimed till 31 March 2011 is adjusted in the accounts in April 2011.
Debit Rs.2500 – 8781 IMOs issued (2008-2009) and Credit Rs.2500 – 1201 Postal
Receipts- Forfeited MOs
9. An amount of Rs.50000 being the haulage charges passed on by Railways adjusted
in the accounts.
Debit Rs.50000 – 8658 Suspense – Reserve Bank Suspense account and Credit
Rs.50000 = 8775 Deposits with Railways Postal Deposits
10. An amount Rs.250000 being the value of Spoilt Stamps is written off and adjusted
in the accounts.
Debit Rs.250000 - 1201 Postal Receipts – Sale of Postal stamps -Deduct Refunds and
Credit Rs.250000 – 8553 – P & T Advances – Postal Advances- Rams and other
accounts
11. The P & T Audit office charges for the current year adjusted in the accounts.
Debit – 3201 - Postal Services- Pay and allowances of Audit staff for the current year
and Credit – 2016 Audit – Deduct charges recovered from P & T depart by transfer to
3201 - Postal Services

B. Rectification of Misclassification or Wrong classification

I. Rectification of errors in the accounts should be done in such a way that there
is no exaggeration or inflation in the accounts. Thus minus debit or minus credit in
a transfer entry should always be shown as deduct from debit (DFD) or deduct
from credit (DFC) respectively.
II. The following principle should be followed while rectifying the
misclassifications/wrong classifications that effect Major/Minor heads of accounts
under
a. Revenue and Revenue
b. Expenditure and Expenditure
c. Revenue and Capital and vice versa
d. Expenditure and Capital and vice versa
e. DDR head alone
f. Revenue and DDR head and vice versa
g. Expenditure and DDR head and vice versa

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III. Revenue and Revenue (Major Head of Account – 1201 Postal Receipts)

a. As a general rule, when the error affects (a) Revenue and Revenue, (b)
Expenditure and Expenditure and when the (i) accounts of the year are not
closed and the amount does not exceed Rs.10/- (ii) accounts are closed
irrespective of the amount involved - No T E is necessary
b. When the accounts are not closed and the amount involved is exceeding Rs.10,
T Es should be made by Debiting or Crediting (DFC or DFD) the wrong head of
account and Credit or Debit to the correct head of account.
1. Amount recovered from other Government Department for services rendered was
misclassified as recoveries from private individual on account of experimental POs.
Deduct from credit – 1201 Postal receipts – Special recoveries and Credit – 1201
Postal receipts –Other services –recoveries from Govt. Departments
2. Rent recovered from professional letter writer was misclassified as rent
recovered from officer occupying a private building rented for PO.
Deduct from credit – 1201 Postal receipts –Other services- Rent and taxes and Credit
– 1201 Postal services –Special recoveries from professional letter writer
3. Fee received for registration of a second nomination for cash certificates
classified as recoveries from private individual on account of experimental PO
Deduct from credit – 1201 Postal receipts – Other receipts – Special recoveries and
Credit – 1201 postal receipts – Other receipts – Other items
4. Income Tax recoveries made in the pay bills of postal assistant misclassified as
miscellaneous revenue
Deduct from credit – 1201 Postal receipts – Other receipts – Miscellaneous revenue
and Credit - 0021 – Taxes on Income other than corporate tax- I T on union
emoluments

IV. Expenditure and Expenditure (Major Head of Account – 3201 Postal

services)
a. As in the case of Revenue and Revenue

1. Payment for opening a canteen in a HPO was classified as contingent

expenditure.
Deduct from debit – 3201 Postal services – Operation- office expenses and Debit –
3201 Postal services – Amenities to staff- Departmental canteen
2. Cost of the Van purchased for the delivery of letters under speed post was
wrongly classified as purchase of vehicle for Mail Motor Service.
Deduct from debit – 3201 Postal services – Operation- Departmental MMS- Motor
vehicles and Debit – 3201 Postal services – Operation – Speed post service- Motor

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vehicles
3. The wages paid to a sweeper was wrongly classifies as pay to a postman.
Deduct from debit – 3201 Postal services – Operation – Wages and Debit – 3201
Postal services – Operation - Salaries

V. DDR head alone (Major Head of Account 8001 to 8671)

a. When the accounts of the year are not closed and the error effects one or more
DDR heads, T E should be made as in the case of Revenue and Revenue.
b. When the accounts of the year are closed and the error effects Major head of
accounts 8001, 8002, 8011, 8446 etc, T E should be made as in the case of
accounts of the year are not closed.
c. When the accounts of the year are closed and the error effects Major head of
accounts other than those mentioned above i.e 8443, 8553 etc., T E should be
made by operating direct Debit or Credit.

1. Amount of IPOs sold was classified as IMOs issued

Deduct from credit – 8781 Money order - IMOs issued and Credit – 8446 P & T
Deposits- Postal Deposits – IPOs sold
2. Amount of Savings Bank deposits was classified as Cash certificates issued.
Deduct from credit – 8002 Cash Certificates and Credit – 8002 Savings Bank
Deposits
3. Abstract of IPOs paid for the month of August 2010 received in April 2011
adjusted in the accounts.
Debit - 8446 P & T Deposits IPOs paid and Credit – 8558 Suspense – Debit suspense
4. Amount pertaining to Western union Money Transfer payment was initially
classified as Departmental Advances & Other Advances (DAOA) for want of
details. After receipt of details during the same financial year the amount was
adjusted.
Debit – 8771 IMOs- Western union money transfer and Credit – 8553 P & T advances
- DAOA

VI. Revenue / Expenditure and DDR head and vice versa

a. When the accounts of the year are not closed and the error effects one or more
DDR heads, T E should be made as in the case of Revenue and Revenue.
b. When the accounts of the year are closed and an item credited to revenue head
of account instead of DDR head of account, rectification of error (T E) should be
made by operating “Refunds” under Debit and Credit to proper DDR head of

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 account.
c. When the accounts of the year are closed and an item relating to Major head of
account 7610 - Loans and Advances for which grants are obtained, rectification of
error (T E) should be made without affecting the debits of the year. In other words,
instead of Debit, Deduct from Credit and Credit should be operated.

1. The recoveries on account of G P F advance refunds was misclassified as

interest on House building advance adjusted in same financial year.
Deduct from credit – 0049 Interest receipts – Other interest receipts – House building
advance and Credit - 8005 – State Provident fund – G P F of Government servants
2. The recoveries on account of G P F advance refunds was misclassified as
interest on House building advance adjusted after closure of accounts.
Debit – Refunds -0049 Interest receipts – Other interest receipts – House building
advance and Credit 8005 – State Provident fund – G P F of Government servants
3. An amount of Rs.10000 paid as House building advance was wrongly taken
under the head MOs paid and the error rectified during the same financial year.
Deduct from debit – Rs.10000 – 8781 IMOs paid and Debit – Rs.10000 – 7610 Loans
and advances – Interest bearing advance – House building advance
4. Rs.1000 being the value of commission was misclassified as Commission on
Money orders and the error was rectified in the same financial year.
Deduct from credit – Rs.1000 1201 Postal Receipts- Commission on MOs and Credit
Rs.1000 8781 IMO – Inland money order issue
5. Rs.1000 being the value of commission was misclassified as Commission on
Money orders and the error was rectified after closure of the accounts.
Debit – Rs.1000 Refunds 1201 Postal receipts Commission on Money orders and
Credit Rs.1000 8781 IMO – Inland money order issue
6. Recovery pertaining to interest on HBA was erroneously booked under HBA
Advances is adjusted in the same financial year.
Deduct from credit 7610 Loans and Advances – Advances to Government servants -
House building advance and Credit – 0049 – Interest receipts – Interest on Loans and
Advances - HBA

ANSWERS
1 d Para 1.01 (d) 46 a Para 7.09 (c)
2 c Para 1.05 47 d Para 7.13

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 3 b Para 1.06 48 a Para 7.26
4 d Para 1.07 49 b Para 7.26
5 d Para 1.08 50 a Item 47 Annexure-I to Para 7.02
6 c Para 1.10 51 d Para 8.01
7 a Para 1.16 52 c Para 8.02
8 d Para 1.19 53 d Note 3 below Para 8.04
9 b Para 1.26 54 a Para 8.07 (iii)
10 a Para 1.27 55 d Para 8.07 (iii)
11 a Para 2.01 56 d Para 8.09
12 c Para 2.02 57 c Para 8.11 2 & 3
13 d Para 2.04 58 a Para 8.12 and Note there under
14 a Para 2.08 59 d Para 9.01
15 b Para 2.08 60 d Para 9.11
16 d Para 2.12 61 d Para 9.35
17 d Para 3.01 62 c Para 9.38
Para 3.02 and 3.03
18 c (1) 63 b Note 1 below Para 10.02
Note III under
19 d 3.06 64 a Note 2 below Para 10.02
Note 1 below Para
20 c 3.06 65 b Note 1 below Para 10.33
21 a Para 3.07 66 a Para 10.38
22 d Para 3.09 67 a Para 11.03
23 d Para 3.09 68 a Para 11.06
24 a Para 3.29 69 b Para 11.08
25 d Para 3.40 70 d Para 12.02
26 a Para 3.41 71 c Para 12.17
Para 3.04, 4.02,
27 a 4.12 72 a Note below Para 12.23
28 c Para 4.18 & 4.19 73 d Para 12.23 and 13.11
29 b Para 4.21
30 a Para 4.21
31 a Para 4.27
32 c Para 5.16
33 b Para 5.17
34 d Para 5.18
35 a Para 5.18
36 a Para 5.19
Note (ii) below
37 a Para 5.19
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38 d Para 5.38
39 d Para 6.14
40 d Para 7.01
Note below Para
41 a 7.04 (a)
42 d Para 7.04 (a)
43 d Para 7.04 (a)
44 a Para 7.04 (b)
45 a Para 7.09 (c)

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