1. Accounting functions in PO
Welcome to
Accounting functions in PO

2. Accounting network of the post offices
PPT7.1.2

3. Sub Account:

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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

12. Exercise.2 (Preparation of BO summary)

13. 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

14. 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

15. 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

16. Leather cash bag Cloth cash bag
Type of cash bags
Leather cash bag
Cloth cash bag

17. 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

18. 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

19. 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

20. 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

21. 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

23. Exercise 3 (Preparation of BO slip)

24. 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

25. 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

26. 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

27. 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

28. 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

29. Exercise 4 (Preparation of SO daily a/c)

30. Excess Cash Balance Memo
(E C B)

31. 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

32. 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

33. 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

34. 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

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

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

37. 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

38. 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

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

40. 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

41. 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.

42. 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.

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

52. Thank you