Para 19.15.3 — CAM

19.15.2 Interest payable on the deferred payment purchase has the effect of increasing the value of the goods purchased and therefore, shall be debited to the same head to which the full value of the equipment, stores etc. was initially debited, as and when they are paid. All Ministries / Departments, with the exception of Ministry of Defence, shall follow the above procedure even if issue of promissory notes or loan agreements covers the purchases on deferred payment terms / supplier’s credit. This is due to the fact that the said imports constitute a commitment to pay the supplier over a period of time and the accounting adjustments prescribed as above do not alter the mode of such commitment.

19.15.3 In order to enable PAOs to carry out the required adjustments, all the concerned Ministries/Departments concerned should send advices to the PAO to carry out the adjustment in question as soon as the equipment, stores, etc. are received. The exception being the departments where PW system of accounts is followed and the initial and subsidiary accounts are compiled departmentally for rendering to the PAOs. In such cases, the value of the equipment etc obtained on deferred terms/supplier's credit should be reflected in the compiled accounts rendered to the latter.