Accounting Policy

• 1. For gross pay:
  Consolidated Pay (PPT) a/c ........Dr.
  To Gross Pay (PPT) a/c
• 2. For deduction from gross pay:
  Gross Pay (PPT) a/c ..............Dr.
  To Professional Tax a/c
  To Net Pay (PPT) a/c
• 3. For settlement of net pay and professional tax liability out of State Govt. grant:
  Professional Tax a/c .......................Dr.
  Net Pay (PPT) a/c ............................Dr.
  To State Govt. Grant a/c
• 4. For transferring the amount of consolidated pay into employees expenses account:
  Employee Exp. (Govt.) a/c ....Dr.
  To Consolidated Pay (PPT) a/c

• 1. For gross salary:
  Employees Expenses (casual) a/c.............Dr.
  To Bank a/c
  To Professional Tax a/c
• 2. For payment of professional tax:
  Professional Tax a/c ................................Dr.
  To Bank a/c

• 1. For honorarium paid to guest lecturers:
  Guest Lecturer Expenses a/c ..................Dr.
  To Bank a/c

*if advance is given to a particular superintendent the above entry will be as follows:

[Notes:
i. No advance will be given if the same is amounted below Rs. 5,000.

ii. A budget of the expenses for which the advance is required, is to be submitted along with the application for advance.]

• 1. For receiving cash for a particular hostel (say, Jitu Hostel):
  Bank a/c ....................Dr.
  To Jitu Hostel a/c
• 2. For incurring expenses (and not any capital expenditure) of a particular hostel
  (say, Jitu Hostel):
  Jitu Hostel a/c..................Dr.
  To Bank / Cash a/c*
• 3. Balance of the hostel a/c is to be transferred to Income and Expenditure Account

*if advance is given to librarian the above entry will be as follows:

[Notes:
i. No advance will be given if the same is amounted below Rs. 5,000.

ii. A budget of the expenses for which the advance is required, is to be submitted along with the application for advance.]

• 1. For receiving cash for Library:
  Bank a/c ....................Dr.
  To Library Fund a/c
• 2. For incurring expenses (and not any capital expenditure) of Library:
  Library Fund a/c..................Dr.
  To Bank / Cash a/c*
• 3. Balance of the Library fund a/c is to be carried forward.

*if advance is given to the President of student’s council the above entry will be as follows:

[Notes:
i. No advance will be given if the same is amounted below Rs. 5,000.

ii. A budget of the expenses for which the advance is required, is to be submitted along with the application for advance.]

• 1. For receiving cash for students council:
  Bank a/c ....................Dr.
  To Student’s council Fund a/c
• 2. For incurring expenses (and not any capital expenditure) of students council:
  Student’s council Fund a/c..................Dr.
  To Bank / Cash a/c*
• 3. Balance of the Students council fund a/c is to be carried forward.

• 1. No advance will be given to any departments / persons if the same is amounted below Rs. 5,000.
• 2. A budget of the expenses mentioning purpose for which the advance is required, is to be submitted along with the application for advance.
• 3. For payment of advance to the head of a particular department (say, Geography department) / a particular person (say, Mr. X) for a specific purpose:
  Advance to Geography Department / Mr. X a/c......Dr.
  To Bank / Cash a/c
• 4. When adjustment is received for the above advance:
  Concerned Asset a/c....................................... Dr.
  Expenses a/c.......................................................... Dr.
  To Advance to Geography Department / Mr. X a/c

• 1. For Receiving UGC / RUSA Grant:
  Bank a/c ..............Dr.
  To UGC / RUSA Grant a/c
• 2. For Expenses/Purchase/Expenditure:
  Expenses/Purchase/Expenditure a/c ............Dr.
  To Party a/c
• 3. For Payment:
  To Bank / Cash a/c
  1. i. Party a/c ...........Dr.
     To TDS u/s 194 a/c
  2. ii. TDS v/s 194 a/c .........Dr.
     To Bank a/c
  3. iii. Party a/c .................Dr. after deducting TDS amount
     To Bank a/c
• For closing Expenses/Purchase/Expenditure account incurred from RUSA / UGC grant:
  UGC / RUSA Grant a/c ……………… Dr.
  To Expenses/Purchase/Expenditure a/c

• 1. For purchasing fixed asset:
  Fixed asset (............. department) a/c..........Dr.
  To Party a/c
• 2. For Payment to party:
  Party a/c..........................................................Dr.
  To Cash / Bank a/c
• 3. For first time recording of an unrecorded asset:
  Particular Fixed asset (..............department) a/c ..........Dr
  To Capital Fund a/c
• 4. For upward revaluation of an asset:
  Particular Fixed asset (..............department) a/c ..........Dr
  To Capital Fund a/c
  [Note: Reverse entry is to be passed for downward revaluation of an asset]
• 5. For depreciation of an asset:
  Depreciation a/c ................................Dr.
  To Particular Fixed asset (..............department) a/c
  AND
  Income and Expenditure a/c ..............Dr.
  To Depreciation a/c

• 1. Party a/c Dr
  To TDS u/c 194
• 2. TDS u/c 194c Dr
  To Bank

• 1. PAN card is Required
• 2. Section 194C states that any person responsible for paying any sum to the resident contractor for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and any firm/institution
• 3. The rate of TDS applicable on contracts under section 194C is 1% for Residential Individuals and HUF. However, for resident other than individual or HUF are liable to pay 2%. Payee not possessing PAN card will be liable to pay at the rate of 20%.
• 4. Under what circumstances TDS u/s 194C is not deductible?No tax is required to be deducted in the following cases: a. Where the sum paid or credited in pursuance of any contract does not exceed Rs. 30,000, or b. where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year does not exceed Rs. 1,00,000 the person responsible for paying such sums will not deduct TDS under this section c. Individual or HUF not to deduct tax if the payment or amount credited to the contractor is for personal use
• 5. Time Limit within which Tax is to be Deposited a. Where the payment is made by or on behalf of the Government – On the same day.b. Where the payment is made in any other case than the government i. If the amount is credited in the month of March – On or before April 30th ii. In Other months – Within 7 days from the end of the month in which the deduction is made.
• 6. Issue of TDS certificate In case of payments other than salary, TDS certificates are to be issued on the quarterly basis in Form No.16A. As per rule 31, every person responsible for deduction of tax from payments other than salary has to issue a quarterly TDS certificate in Form No. 16A. The certificate is to be issued by the following dates:
  APRIL to JUNE by 30 July, July to Sep by 30 October, October to Dec by 30 January, January to March by 30 May

• 10% of gross bill deducted from Vendors
• Deposit period : At least six months and as per condition of Tender.
  [ Party A/c Dr.
  Security Deposit A/c. Cr.
  & Security Deposit A/c. Dr.
  Bank A/c . Cr.]