Para 8.3 — CAM

8.3 PROCEDURE FOR ADJUSTMENT OF OUTWARD CLAIMS RECEIVED FROM OTHER PAOs THROUGH CASH SETTLEMENT

8.3.1 Such transactions may represent either recoveries or receipts initially accounted for by the Pay and Accounts Officer of the other Department or Government or payments made by other Government/Department, which are finally adjustable in the books of the PAO which receives the claim. In the former case, the other Pay and Accounts Officer will settle receipts/ recovery through C category cheque or any other instrument authorised by CGA, along with supporting schedules etc. (Form CAM 54). On receipt of the C category cheque, the Pay and Accounts Officer will send it to the bank for credit to Government account along with a challan showing the classification of the receipt or recovery and credit the final head of account at the time of compiling the account on receipt of the bank scrolls.

8.3.2 In the latter case i.e. when another Department or Government has made payment, an account with supporting vouchers will be sent by the other party along with a claim for reimbursement. On receipt of the claim, the Pay and Accounts Officer will examine it to see whether prima facie, it pertains to the Department under their payment control and if necessary, consult the Departmental officer. If it pertains to their Department, the Pay and Accounts Officer will have a bill prepared for the amounts duly classified under final head, pass and send the bill to the cheque section, just as in the case of a bill presented at the bill counter of the PAO. The cheque section will issue the cheque and send the paid voucher to the accounting section along with other vouchers paid during the day. The debit will be classified under the final heads at the time of compiling vouchers received from the Cheque Section as in the case of other payments. The cheque will be dispatched to the PAOs of the Government or Department concerned along with a forwarding letter in Form CAM-56, giving reference to the number and date of the letter through which the claim was received.

8.3.3 Specimen entries of the accounting adjustments to be made in the books of the PAO on account of Inter-Departmental and Inter-Governmental transactions are given below-

(a) Recovery (say of ₹ 500) made from pay bill towards Provident Fund subscription adjustable in the books of another PAO:

First Stage: When the recovery is effected it will be classified under "8658-Suspense AccountsPAO Suspense-Transactions" adjustable by PAO 'X' - ₹ 500/-Credit-Original.

Second Stage: When the cheque is issued in favour of the other PAO, schedule of Debit or Credit received in Form CAM -54 will serve the purpose of bill. The accounting entry will be as follows-

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Covers adjustment of claims from other PAOs through cash settlement
• 2Two types: (a) receipts/recoveries via C-category cheque, (b) payments via demand draft
• 3Receiving PAO must verify and book under the final accounting head
• 4Response within prescribed timeline is mandatory; rejection requires justification
• 5Supporting vouchers must accompany all claims

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.