General Accounting Principles And Guidelines
- General Point
- Project books of accounts have to be maintained on CASH BASIC OF ACCOUNTING
- Books of accounts have to be written on daily basis and should be closed monthly, cash-book, Bank-book, project ledgers have to be maintained apart from other books of accounts maintained.
- Separate cash box has to keep.
- Separate books of accounts have to be kept for different project.
- Separate accounts of all income (including bank interest) & expenditure related to the project have to be kept.
- Funds must be spent within the project period / duration.
- Actual expenditure, in no case, should exceed amount provided in approved budget. Budget has to be controlled individual head wise.
- Book-keeping errors must be corrected by two entries 1) reversal entry 2. correction entry
- The project holder must follow all national, tax social security and other legal regulations.
- Revenant records have to be bound separately after audit of accounts is complete.
- Expenses are to be in consonance with the approved budget heads.
- VOUCHERS / SUPPORTING DOCUMENTS
- Bills should be obtained for all the expenses incurred and material procured. Bill should be proper in strict sense. It means that procurements should not be made on Performa invoice or quotation but it should be on proper bill duly signed in which seals tax number (if read.) bill no, date particulars of items purchase, quantity price and all other particulars should be clearly mentioned. Otherwise bill will not be treated as proper and may get rejected.
- Original voucher must clearly have all the details
- Voucher no(s) should be maintained ( Separately cash or Book)
- Date of payment / receiving and name of payee / payer.
- Purpose and amount of payment ( written in figure and words)
- Project number
- Confirmation of payment ( paid stamp) with payee/ payer signature/ thumb mark.
- All vouchers to be confirmed and certified by chief functionary , person concerned / project supervisor
- Only original official receipts / invoices may be posted No. copies.
- In case of loss or non-availability of original official receipt / Invoices, an self created voucher must be prepared.
- Official receipts / invoices are numbered in serial order to avoid duplicate issue.
- Vouchers must be properly authorized by the concerned authority only
- Payment above Rs. 5000/- should be affix with the revenues stamp of Rs. 1-
- Cash and Bank
- All the payments to the outsiders must be made by account payee cheque. No payment to the outsider should made by cash or bearer cheque.
- Cheques must be kept in a safe box
- Cancelled cheques have to be kept together with the cheque book
- Cheque issue register has to be maintained
- Separate cash book has to be kept for the project
- The maximum cash in the petty cash box should be as high as necessary as low as possible
- The cash balance should be tallied daily (physical verification) with the cash book and should be signed by the cashier and the authorized person.
- Salary have to be paid by cheque / bank transfer and should not be paid by cash
- Bank reconciliation should be prepared on a monthly basis.
- Programme Outside Joint account Should be compulsorily opened.
- There should joint Account of 2 person staff and Board Members of office.
- Cheque book should be maintained by field accountant or coordinators of the office.
- There should be 1 board Member in Purchase Community.
- Gas Booking Must be done by the Firm name or Staff name.
- Fields Worker Can Utilize Rupees 500.
- Project Coordinator/Account Can Utilize Rupees 5000.
- Project Director Can utilize Rupees 10000.
- President Can utilize Rupees 25000
- President and joint Members Like secretary and Treasure can Utilize Rupees 25000 to
- The Things which is purchased by the firm should be verify after 3 months.
- Assets and Cash Insurance Should Be taken.
- In-Kind Things Should be maintain in the books of Account.
- Other point
- Assets have to be insured adequately.
- Procurement procedure should be followed for the purchase of any fixed asset.
like quotations, purchase committee & comparative statement.
- All original bills / challans / purchase orders etc. should be enclosed with the voucher.
- Event Photo Should Be attached with Voucher (Minimum 4 Photos with Banner ,
- Program Event Attendance Sheet Must Be attached with Payment voucher otherwise
payment maybe cancelled by Dr.ASVSS Accounts Department
- Maintain the details of the assets procured under the project in a fixed assets register
(details like description assets identification no. date of purchase original value location
person responsible for it. )
- Fixed assets purchased must be in the name of the organization ( not in individual’s
- Regular back up’s has to be taken if accounts are maintained in computerized system.
- Organization should have proper system of control over advances and also should try to
avoid giving advances under the project. As accounts have to be maintained on cash
basis, there should not be any payables.
- An attendance register has to be maintained.
- Logbook has to be maintained for vehicles bought / rented for the project vehicles
should be used for official purpose only .
- Maintain a record of contracts of staff employed.
- Maintain the salary register for the payment made (only by cheque ) to the project staff.
- Rent agreement for the office taken for the project has be there.
- Written agreement to be made with the consultant / resource person haired for the
- If some common expenses have to be charged to the project then basis of its
apportionment has be properly document and sent to related agencies
- Ledger accounts have to be strictly depended as per the heads given in the approved
- Separate receipts and payments accounts for the different project
- Interest earned on the project funds will be accounted in the project
- Advances for the project should be made on written requesting depicting the heads
under which these expenses are to be incurred.
- Settle previous advances for making other advances.
- Maintain inventory register
- Every financial year 1st April to 31st March audit to be done by Chartered accountant