Para 12.44 — MSO (A&E)
Original Rule Text
12.44 The posting of March transactions into the individual accounts of subscribers should be taken up by about the middle of April and completed by the middle of May. The work of calculation of interest due on each account should be commenced slightly before the completion of March postings
and completed within a month, a transfer entry being prepared and incorporated in the March Final or Supplementary Accounts crediting the Provident Fund Head and debiting "0049 Interest Receipts". The interest calculation made by each Accountant with the help of interest tables should be checked independently by a separate Accountant. The amount of interest for the year as well as total deposits, refunds and withdrawals should be posted in the space provided for the purpose in the remark column of the ledger card and the closing balance for the year, worked out in respect of every ledger card. The calculations should be checked in detail by the Examiner, the Section Officer and the Gazetted Officer to the extent as may be prescribed.
NOTE:-Interest short or excess credited to a Provident Fund in the accounts of a previous year should be readjusted by addition to or deduction from the interest adjustable in the accounts the year in which the error is detected.
Side by side with the above process, the Machinist should prepare a balance compilation (in duplicate), Form 40 from the completed cards, cut the duplicate copy of the balance compilation statement into slips, and paste them on the forms of Annual Deposit account of subscribers; vide paragraph 12.67. He should satisfy himself that all the relevant ledger cards relating to a department have been collected including those which were closed during the currency of the financial year the accounts of which are under verification.
What This Means
March postings should begin by mid-April and be completed by mid-May. Interest calculation starts slightly before March postings are finished and should be completed within one month. A transfer entry is prepared crediting the Provident Fund head and debiting '0049 Interest Receipts'. Interest calculations are independently checked by a separate Accountant. The Machinist simultaneously prepares a balance compilation (Form 40) in duplicate, with slips from the duplicate pasted onto the Annual Deposit Account forms for each subscriber.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1March postings: start mid-April, complete by mid-May
- 2Interest calculation begins before March postings are complete, finished within one month
- 3Transfer entry: credit Provident Fund, debit '0049 Interest Receipts'
- 4Interest is independently checked by a different Accountant from the one who calculated it
- 5Balance compilation (Form 40) prepared in duplicate; duplicate slips pasted on annual account forms
- 6Short or excess interest from previous years is adjusted in the year the error is detected
Practical Example
In the AG office, the team begins posting March GPF transactions on April 15. By May 1, interest calculation starts using the interest tables. Accountant A calculates interest for the Home Department subscribers, and Accountant B independently verifies those calculations. A transfer entry of Rs. 12,50,000 is prepared debiting '0049 Interest Receipts' and crediting the GPF head. The Machinist prepares Form 40 in duplicate and cuts the duplicate into slips that are pasted onto each subscriber's annual account statement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must interest calculation be checked by a separate Accountant?▼
How is interest from a previous year corrected if an error is found?▼
What is the purpose of the duplicate balance compilation (Form 40)?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.