Accounting functions in PO Welcome to Accounting functions in PO

Accounting network of the post offices PPT7.1.2

Sub Account:

Receipt and opening of BO Bag at AO Mail PA receives bags from various sources Hands over BO bag to treasurer Treasurer examines the condition, opens it in the presence of Sub Account PA Gives acquittance for cash bag in BO daily account Returns all documents to Sub account PA Rule No 68 & 69 of PO Manual Volume VI Part-III

Receipt and opening of BO Bag at AO Sub Account PA to: - Examine if all the documents are correctly received - Distributes the contents to respective branches. Rule No 68 & 69 of PO Manual Volume VI Part-III

Distribution of contents Description of articles Unpaid station article, if any Paid station articles Other unregd.articles Regd.and VP articles Handed over to- SPM Delivery PA Sorting PA Registration PA Rule No 68 & 69 of PO Manual Volume VI Part-III

Distribution of contents Parcel and VP parcel MO s booked(for re-booking) MO s paid vouchers Parcel PA MO issue PA MO Paid PA Rule No 68 & 69 of PO Manual Volume VI Part-III

Distribution of contents SB/RD/TD vouchers and documents Acquittance rolls BO daily account SBPA SPM Retained by SAC PA Rule No 68 & 69 of PO Manual Volume VI Part-III

Checking of BO Daily A/C Should ensure that— Cash from BO acknowledged by treasurer Cash remitted to BO taken into account Date stamp impression Opening balance is correct The account tallies with documents such as MO issue, MO paid, SB deposit etc. Details of closing balance agrees with account Cash and stamps retained within the limits Signature of BPM Rule No 68 of PO Manual Volume VI Part-III

Exercise.1 (checking of BO daily a/c)

Rule No 73 & 74 of PO Manual Volume VI Part-III BO SUMMARY A consolidation of BO daily account at AO Maintained by AO, having BOs One line for each BO Transactions posted - Opening balance - Receipts - Total of Receipts - Payments - Total of payments - Closing balance - Transit Rule No 73 & 74 of PO Manual Volume VI Part-III

Exercise.2 (Preparation of BO summary)

Rebooking of Branch office money order All money orders booked at Branch Office are sent to account office. MO Issue PA collect the MO forms from sub account PA and rebooks them with following additional entry. Branch office receipt number Name of Branch office MO receipts are given to sub account PA for onward transmission to Branch Office Rule No 16 of PO Manual Volume VI Part-II

Index to Branch Office receipt (MS-87(a) ) Maintained by Account Office. Whenever Branch Office receipt is used by Branch Office it is noted against the name of Branch Office under corresponding date It is maintained in prescribed format month wise. Account Office to watch continuity of receipts used by Branch Office. Rule No 71 of PO Manual Volume VI Part-III

Index to Branch Office receipt (MS-87(a) ) Particulars of receipt books supplied to Branch Office should be noted against the name of Branch Office under corresponding date Similarly, Index to Branch Office receipt is to be maintained for other type of receipt books used by Branch Post Master. Viz.SB26,NC4(a),TRC,RPLI,SB28 etc. Rule No 71 of PO Manual Volume VI Part-III

Leather cash bag Cloth cash bag Type of cash bags Leather cash bag Cloth cash bag

Procedure for closing Cash Bag Sub Account PA gets the orders of SPM for remittance on BO Daily account Sub Account PA Shows the orders to Treasurer and gets his signature on the BODA at appropriate column Treasurer closes cash bag Sub Account PA watches cash remittance Rule No 18 of PO Manual Volume VI Part-III

Procedure for closing Cash Bag… Enters remittance particulars in BO slip Sub Account PA weighs cash bag and enters weight on cash bag label and BO slip Treasurer watches and attests Rule No 18 of PO Manual Volume VI Part-III

Procedure for closing Cash Bag… Treasurer keeps cash bag inside BO bag Sub Account PA closes BO bag Treasurer watches – keeps BO bag till dispatch Rule No 18 of PO Manual Volume VI Part-III

Rule No 27 & 63of PO Manual Volume VI Part-III PREPARING BO SLIP Write closing balance of previous days BO balance w.r.t BO summary. Advice remittance, if any; - Cash - Stamps Rule No 27 & 63of PO Manual Volume VI Part-III

Rule No 27 & 63of PO Manual Volume VI Part-III PREPARING BO SLIP Instructions, to the BPM of irregularities if any. Enter postage due articles sent to BO Particulars of other accountable articles- MOs RLs, RPs, SB documents etc. Treasurer to initial remittance entries SAPA to sign and date stamp Rule No 27 & 63of PO Manual Volume VI Part-III

Exercise 3 (Preparation of BO slip)

Preparation of Sub Office Daily Account As per list & vouchers of various branches SPM prepares SO Account SO Daily account is prepared w.r.t SO Account by SPM Previous day’s closing balance is taken as opening balance for the day Receipts & Payments taken as per Sub Office Account Rule No:29 of Postal manual Volume : VI Part -II

Preparation of Sub Office Daily Account Closing balance written in words & figures Details of closing balance, particulars of authorized balances & liabilities noted Reason for retention of excess cash should be noted Reason for cash below minimum & for excess stamps should be noted Particulars of cash and stamp remittances received & made should be noted Rule No:29 of Postal manual Volume : VI Part -II

Preparation of Sub Office Daily Account Particulars of document sent should be noted on reverse side Requirement of Stamps, Cash noted in the remark column Signed by joint custodian and SPM Impressed with Name stamp & date stamp Rule No:29 of Postal manual Volume : VI Part -II

Preparation of Annexure ‘A’ to SO Daily account Prepared & enclosed to the SO Daily when BO’s are attached The balances held in BO’s form part of the balance of SO’s In the column for ‘details of balances’ of the SO daily account this is shown against the item ‘amount due from BO’s

Preparation of Annexure ‘A’ to SO Daily account Amount due from BO’s represent actual balances held in BO’s, the remittances in ‘transit’ and advance remittance Since amount due from BO’s is shown in the details of balances, the break-up of figures, namely actual balances in BO’s and the remittances in transit are also shown by the SPM in a separate ‘Annexure A’ attached to SODA

Exercise 4 (Preparation of SO daily a/c)

Excess Cash Balance Memo (E C B)

Excess Cash Balance Memo Whenever Cash balance is kept in excess of authorized minimum cash balance SPMs have to note amount of liabilities in their Daily account Whenever Cash balance is kept in excess of authorized maximum cash balance in addition to above action SPMs to prepare ECB in PA-20 and submit to HO

Excess Cash Balance Memo… SPMs of status LSG and above need not prepare this ECB memo This is one of the preventive measures to avoid commission of frauds in Sub Offices and BOs ECB contains two parts 1. ECB for Sub Office 2. ECB for Branch Offices

ECB for Sub Office Whenever SO Cash balance is kept in excess of authorized maximum cash balance SPMs to prepare ECB It contains following information Authorized Cash balances Cash balance held on that particular day Excess cash held Explanation for excess retention of cash

ECB for Sub Office… SPM to furnish details of MO, Savings Bank/ Savings Certificates, Acquittance rolls by referring basic records of office The particulars of late collections, late receipt of remittance from other offices to be furnished Any other reason for excess retention of cash

ECB for Sub Office…. ECB memo should be given monthly serial number and signed and stamped

Exercise (Prepare ECB for SO for D/A prepared by you)

ECB for Branch Offices Whenever total of CBs of all BOs is more than authorized BO aggregate balances ECB for Branch Offices to be prepared SPM to furnish explanation for retention of excess cash by each BOs

ECB for Sub Office… SPM to furnish Cash held, amount of liability of those BOs which are responsible for excess retention of cash w.r.t BO daily account and mention his remarks of justification or otherwise SPM to sign the ECB

Exercise- Prepare BOECB for SO D/A prepared by you.

Action on ECB A watch should be kept at HO whether ECBs are being prepared by SPMs wherever justified Whether ECBs are properly serial numbered HPM to check SO ECB memo w.r.t basic records of HO maintained in respective branches and pass his remarks whether explanation is satisfactory or otherwise

Action on ECB…. HPM to check BO ECB w.r.t BO daily accounts and satisfy himself that remarks of SPM against each BO is justified or other wise. HPM to pass his remarks and sign. All ECBs are stitched in a bundle stamped and submitted to Divisional Office on following day.

Action on ECB…. In DO ECB is scrutinized by Divisional Supdt. Or Asst.Supdt daily and pass his remarks as to whether it should be got enquired through concerned sub divisional IPs ECB is finally filed at Divisional Office.

Other important documents and records maintained at HO SO Summary Treasurer cash book HO Summary HO Cash book & PM’s Balance sheet Monthly cash account

SO Summary SO Summary is maintained by HO Sub Account PA (on par with BO summary that we have discussed already) in two parts viz, Part I - SB Part II - General SAPA prepares SO slip to dispatch to SOs

Preparation of SO Slip (PA-3) Sub Account PA in HO prepares SO slip - Enters all documents - Enters closing balance - Includes all contents Sub Account PA shows to treasurer, the orders of PM for remittance Treasurer closes cash bag as discussed earlier Sub Account PA closes account bag Rule No 18 of PO Manual Volume VI Part-III

TREASURER’S CASH BOOK- FORM ACG 2 Shows entry of cash, stamps and cheques Maintained in the treasury Treasurer should make all entries Make entries as and when transactions occur Number transactions serially

TREASURER’S CASH BOOK- FORM ACG 2 Entry of book transfers not to be made Enter the name and designation of the official with the amount Obtain acquittance both in words and figures when money is paid All payment is to be authorized by the HPM/Supervisor

TREASURER’S CASH BOOK- FORM ACG 2 Hand over cash to concerned official directly and not through any third person Both the side of TCB totaled for the day and balanced Closing balance be written in words Book should be signed by treasurer and HPM

TREASURER’S CASH BOOK- FORM ACG 2 Closing balance should agree with the total “particulars of closing balance” of HO summary Draw a line below the closing entries of each day

PROCEDURE IN TCB FOR PAYMENT OF MOs Treasurer hands over cash to each postman as per MO-3 Obtain acquittance for the amount on MO-3 No acquittance be taken in the TCB MO PA places his initial in the TCB against lump entry of MO cash

PROCEDURE IN TCB FOR PAYMENT OF MOs Treasurer gives acquittance in the postman book for the money received back Enter the amount received from postman in the TCB against his number MO PA initials each entry in token postman has paid correct amount

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