Para 12.46 — MSO (A&E)
Original Rule Text
12.46 After the despatch of the annual accounts of subscriber (vide paragraph 12.67), the balances consolidated in Form 40 should be agreed in the same way as in the case of quarterly compilation but with an additional factor, i.e. interest.
# COMPILATION OF PROVIDENT FUND ACCOUNTS BY THE FRONT FEED ACCOUNTING MACHINES
What This Means
After the annual account statements have been sent to subscribers, the consolidated balances in Form 40 must be verified. This verification follows the same process used for quarterly compilations but includes one additional factor: interest. The interest credited for the year must be accounted for alongside subscriptions, refunds, and withdrawals when proving that all figures agree.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Annual balance verification happens after despatch of subscriber account statements
- 2Same method as quarterly verification, plus interest as an additional factor
- 3Form 40 balances must be fully proved and reconciled
- 4Interest is the key differentiator between quarterly and annual verification
Practical Example
After mailing out 5,000 annual account statements in August, the verification team takes Form 40 for the Public Works Department. They verify the totals of opening balances, subscriptions, refunds, and withdrawals — just like quarterly verification — but also verify that the Rs. 28,50,000 interest credited during annual closing is correctly reflected. All figures are agreed with the Proof Sheet, confirming the annual accounts are accurate.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does annual verification include interest but quarterly verification does not?▼
When exactly does the annual verification take place?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.