Para 20.40 — MSO (A&E)
Original Rule Text
20.40 Under "Suspense Account" are provided two columns one for credits and another for debits, but no items should be taken under this head, except with the special sanction of the Gazetted Officer-in-charge. See also Rule 70 of Government Accounting Rules, 1990.
In the column for 'Receipts' will appear only sums shown for credit to a Debt head, but imperfectly described. Any item of revenue receipt, of which full particulars are not given, must be taken to the credit of the minor head 'Miscellaneous' under the revenue head to which it appears to belong. But such items must be rare nor does the fact they have been so credited and included in the aggregate receipts of the month relieve the Accountant General of the duty of ascertaining by correspondence what their real nature is and of transferring them to the credit of the
proper head by debit to the head originally credited, they may be made the subject of special correspondence with officers concerned, but must, in all cases, be notified in the Objection Statement and their amount entered in the column of the Objection Book headed " Items adjusted but awaiting final clearance".
In the 'Payments' column will appear items not only of charges for which such particulars are not given as will enable the A&E office to classify them properly but also charges disallowed from the Inward Settlement Accounts which are not susceptible of final adjustment against some other head. If, however, the only point of doubt is whether a particular item of expenditure should be treated as Central or as pertaining to State, it should not be debited to "Suspense" but to a proper service head of account and shown as appertaining to the Government which actually incurred the expenditure. If it is decided subsequently that the expenditure should be finally recorded against another Government, the correcting adjustment should be made in the accounts of the year in which the decision is taken, unless it was anticipated and provided for in the Grant or Appropriation of the previous year the accounts of which have not been finally closed.
# ITEMS ADJUSTED BUT AWATTING FIINAL CLEARANCE
What This Means
The Suspense Account in the Objection Book has two columns — credits and debits — and entries can only be made with special sanction from the Gazetted Officer-in-charge. Revenue receipts with incomplete details go to the 'Miscellaneous' minor head under the appropriate revenue head, not suspense. On the payments side, both unclassifiable charges and disallowed Settlement Account items go to suspense. However, if the only question is whether expenditure belongs to Central or State government, it goes to the proper service head, not suspense.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Suspense Account entries require special sanction from a Gazetted Officer
- 2Imperfectly described revenue receipts go to 'Miscellaneous' under the relevant revenue head
- 3The AG must still investigate and properly classify all miscellaneous receipts
- 4Payment-side suspense covers unclassifiable charges and disallowed settlement items
- 5Central vs. State classification disputes do not go to Suspense — they are booked to the proper service head
Practical Example
A treasury remits Rs 50,000 with insufficient description. Since it appears to be revenue, the Accountant credits it to 'Miscellaneous' under the Land Revenue head rather than Suspense. He then writes to the treasury for proper classification details. Meanwhile, a payment of Rs 30,000 is disallowed from the Inward Settlement Account because it cannot be classified — this goes to Suspense Payments with Gazetted Officer approval.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
When should an item be placed under Suspense Account?▼
What if expenditure classification between Central and State government is disputed?▼
What is the AG's responsibility for items credited to Miscellaneous?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.