Para 10.20 — MSO (A&E)
Original Rule Text
10.20 Under suspense heads are recorded all such transactions as are ultimately removed either by payment or recovery in cash or by book adjustments. Unless otherwise provided for by rules made by the Comptroller and Auditor General or with his consent the use of suspense heads for provisional
adjustment of transactions ultimately adjusted under ordinary revenue and service head should be avoided as far as possible.
What This Means
Suspense heads are used to temporarily record transactions that will eventually be cleared through cash payment, recovery, or book adjustment. The use of suspense heads for transactions that will ultimately be classified under regular revenue or service heads should be minimized. Suspense heads should only be used when specifically provided for by rules made by or with the consent of the CAG.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Suspense heads are temporary holding accounts for transactions pending final classification
- 2Transactions are cleared by cash payment, recovery, or book adjustment
- 3Use of suspense heads should be avoided for transactions that can go directly to revenue or service heads
- 4Suspense head usage requires rules by the CAG or made with CAG's consent
Practical Example
A treasury receives Rs. 5 lakh but cannot immediately determine which department's revenue head it belongs to. Rather than holding up the daily accounts, it is temporarily booked under a suspense head. The AG's office must then investigate and classify it under the correct revenue head within the same month if possible. The AG would discourage a department from routinely using suspense heads for transactions that could be directly classified at the time of receipt.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should suspense head usage be minimized?▼
How are suspense head transactions eventually cleared?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.