Para 20.47 — MSO (A&E)
Original Rule Text
20.47 But if the explanation of the items shows that it belongs to the "Suspense" class (e.g. a deposit repayment is objected to for want of a voucher, which, when it is received, turns out to be for a less amount than the charge), the items will be adjusted so far as regards the column "Awaiting Clearance", but again be brought on the Objection Book, in the new month, under "Suspense". Reference, will be made both in the adjustment and in the new objection to the transfer entry by which the amount is debited to the new head.
- CLOSING OF OBJECTION BOOK
What This Means
If investigating an 'Awaiting Clearance' item reveals it actually belongs to the 'Suspense' category (for example, a deposit repayment voucher arrives but shows a different amount than what was charged), the item is adjusted and cleared from 'Awaiting Clearance' but then re-entered in the Objection Book under 'Suspense' in the new month. Both the adjustment entry and the new suspense entry must reference the transfer between categories.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1An 'Awaiting Clearance' item may need reclassification to 'Suspense'
- 2The item is first adjusted out of 'Awaiting Clearance'
- 3Then re-entered under 'Suspense' in the new month's Objection Book
- 4Cross-references must be made in both the adjustment and new objection entries
- 5A transfer entry debiting the new head accompanies the reclassification
Practical Example
A deposit repayment of Rs 15,000 was recorded under 'Awaiting Clearance' pending receipt of the voucher. When the voucher arrives, it shows only Rs 12,000 was actually repaid. The Accountant clears the Rs 15,000 from 'Awaiting Clearance' and books Rs 3,000 under 'Suspense' in the current month, with a debit transfer entry and cross-references in both entries.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why would an item move from 'Awaiting Clearance' to 'Suspense'?▼
How is the transfer between categories recorded?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.