Page 132 - Appr

118
GRANT No.XI ROADS, BUILDINGSAND PORTS (Contd.)
(vi) Suspense:
No transaction was booked under the head ‘Suspense’ in the Revenue Section of the
Grant during the year 2012-13.
The head ‘Suspense’ is not a final head of account. It accommodates interim transactions
in respect of which further payments or adjustments of value are necessary, before the transac-
tions can be considered complete and finally accounted for. Accordingly, the transactions under
this head which are not adjusted to the final heads of account are carried forward from year to
year.
The nature of each transaction is explained below:
Purchases:
Whenmaterials are received froma supplier, another division or department for a specific
work or for stock and have not been paid for, their value is credited to ‘Purchases’so that the
cost may be included at once in the accounts of work or stock. This head shows a credit
balance which represents the value of stores received, but not paid for.
Stock:
The head is debited with all expenditure on acquisition of stock andmaterials connected
withmanufacturing operations. It is creditedwith the value of materials issued toworks or sold
or otherwise disposed off and the balance in the account represents the book value of materials
in the stock plus the unadjusted charges etc., connected with the manufacture.
Miscellaneous Works Advances:
This head records (i) sale of materials on credit, ( ii) expenditure on deposit works incurred
before receipt of contributions or in excess of contributions received, (iii) losses and
retrenchments etc., and (iv) other items awaiting adjustments.
The debit balance under this head would, therefore, normally represent amounts
recoverable.
Workshop Suspense:
The balance under ‘Workshop Suspense’represents expenditure on jobs in progress at the
end of the year in the PublicWorksWorkshops.