Rule 60 — GAR
Original Rule Text
60. All losses or deficiencies of this type shall be recorded under relevant separate heads in the accounts.
NOTE: 1:- The: acceptance of counterfeit coin or notes shall be regarded as a loss of cash.
N* 95 2.:- Any recovery made: in the course of the year in which the losses are brought to account shall be shown by deduction from the head under which the loss is recorded. Any recovery made after the: accounts of the year are clssed: shall be as an item of receipts.
Classification of Irregular or unusual payments:
What This Means
Rule 60 deals with losses or deficiencies of cash — whether the cash is held in a government treasury or in departmental custody (i.e., with a departmental cashier or collecting officer). The rule is straightforward: ALL such losses must be recorded under relevant, separate heads in the government accounts. Unlike physical asset losses (Rule 59), cash losses cannot simply be absorbed in subsidiary registers — they must appear explicitly as debits in the main government accounts.
The rule also provides two important notes. First, accepting a counterfeit coin or note is treated as equivalent to a cash loss and must be recorded under the loss head. The government servant who accepted the fake currency did not obtain real value for the government — the effect is the same as if the equivalent cash were lost. Second, the rule distinguishes between in-year recoveries and recoveries made after the year's accounts are closed: if a recovery is made in the same year the loss is brought to account, it is shown as a deduction from the loss head; but if the recovery is made after the year's accounts are closed, it is recorded as a receipt in the year of recovery.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1ALL cash losses (in treasury or in departmental custody) must be recorded under a separate, relevant head in the main government accounts.
- 2Accepting counterfeit coins or notes is treated as a cash loss and must be similarly recorded.
- 3Recoveries in the same year as the loss: shown as deductions from the loss head.
- 4Recoveries after the year's accounts are closed: treated as receipts in the year of recovery.
- 5Cash losses require separate head entries in the accounts — they cannot be absorbed internally (unlike physical asset losses under Rule 59).
- 6Relevant to all treasury officers, departmental cashiers, and accounts officers.
Practical Example
A departmental cashier at a government construction division accepts a counterfeit Rs. 500 note during collection of security deposit money from a contractor. The forgery is detected the next day when the cash is deposited at the bank. The amount of the counterfeit note (Rs. 500) is a cash loss under Rule 60. The PAO records a debit of Rs. 500 under a specific minor head for 'Losses of Cash' under the division's accounts. Three months later, the contractor voluntarily pays a genuine Rs. 500 to compensate for the loss. Since this recovery occurs in the same financial year in which the loss was booked, it is shown as a deduction from the same 'Losses of Cash' head — reducing the debit balance rather than being credited to a separate receipt head. Had the accounts of the year been closed before the recovery came in, the Rs. 500 would be credited to a receipt head in the following year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.