Para 6.4 — The AG maintains two types of Subsidiary Loan Regi

MSO (A&E)mso-ae

6.4 The Accountant General will keep two Subsidiary Loan Registers (in the annexed Forms A and B) for all loans made by Government to public or quasipublic bodies and to individuals, except Revenue Advances (see paragraph 6.14). Form A will be for those loans which are repayable by direct credit of the repayments to the principal of the loan and From B for those which are repayable by payments into a Sinking Fund. In both cases, a separate page should be set apart for each loan. Before posting recoveries, whether of principal or interest, into the classified Abstract the accountant will obtain the initials of the poster of the Loan Register against the entries in the treasury account to show that they are correct. The poster of the Loan Register, after reference to the Detail Book will make the necessary postings from the treasury accounts, and also post into a broadsheet the total amount recovered or paid for each loan. The total in the broadsheet should be
certified monthly by the Book-keeper, while the register as well as the broadsheet should be reviewed monthly by the Gazetted Officer-in-charge. The Register prescribed above should be maintained also in respect of loans given by the Union Government to the State Governments.
Subsidiary Register of Loans of Rs…………… sanctioned for ……….. in orders of Government of…………No. …………….. dated……………….
- FORM ‘A’
# CONDITION OF LOAN
“ To bear interest at ………….. per cent to be paid (half) yearly on ………….and to be repaid by (half) yearly instalments of Rs…………..in addition to accruing interest or (within……………… years) or (in …………….equal instalments)”.
<table><tr><td>________________________________________________________________________ Date & Voucher Account of principal of Calculation of Interest on Principal Account of Interest Demand Loan Date Voucher Advance Repayment Balance Period On On Amount Amount paid Advances Repayment due & credited To interest 1986 Rs. Rs. Rs. Rs. Rs. Rs. Rs. April 16th Balance 50,000 ½ yr. 1,000 1,270 May 1st 270 May 5th 7 5,000 55,000 164 d 90 June 10th 20,000 35,000 128 d 280 June 16th 700 August 16th 18 5,000 40,000 61 d 33 September 1st 200 ____________________________________________________________________________________________________________ Total :- 1,123 280 1,270 1,170 October 16th To arrear Interest Due Rs. 1,270 less Rs. 1,170 100 Interest due on arrear interest, namely:- Rs. 1,270 at 6 percent, for half year 38 less Rs. 270, for 168 days 7 Rs. 700, for 122 days 14 Rs. 200, for 45 days 2 Net due 23 15 To interest accrued on principal this day Rs. 1,123 Less Rs. 280 843 ___________________________________________________________________________________________________________ October 16th Balance 40,000 year 800 958</td></tr></table>
1. In this example, the rate of interest is taken at 4 percent and the days for its payment are supposed to be April 16th and October 16th. The first, second and fourth sections record actual transactions and require no remark. In the third section “Calculation of Interest on Principal”, the figures show the amount that accrues and falls due upon the next periodical day. On the balance of Rs. 50,000/- half a year’s interest or Rs. 1,000/- will fall due on October 16th; on the rest the amounts are calculated upon the number of days from the date of the transaction till the end of the half year: the actual amount due on October 16th is the difference between the two columns.
2. On the periodical fixed day, the amount is made up in the manner shown, and the balance of principal, Rs. 40,000/- and of interest Rs. 958/- due from the debtor is calculated and set forth in the manner indicated.
3. It is not thought worthwhile to set apart separate special columns for calculation of interest due on arrear interest. The calculation, however, is made as shown in the above specimen, in exactly the same way as on the principal though the rate percent is usually higher.
4. The sum of Rs. 20,000/- in the foregoing example would not, in
practice, be entirely credited to principal, but it is so entered here in order to illustrate how the account may be made up under various possible contingencies.
<table><tr><td>FORM B Loans repayable by/payment into a Sinking and voucher Amount of Principal of Loan Calculation of Interest on Advances Amount of Interest Demand Voucher Amount Advanced Balance Period Amount Interest due Interest realised Balance Date Particulars Payments 2 3 4 5 6 7 8 9 10 11</td></tr></table>

What This Means

The AG maintains two types of Subsidiary Loan Registers for all government loans (except Revenue Advances): Form A for loans repaid by direct principal repayment, and Form B for loans repaid through a Sinking Fund. Each loan gets its own page. Before posting recoveries into the Classified Abstract, the accountant must get the Loan Register poster's initials confirming the entries are correct. The broadsheet totals are certified monthly by the Book-keeper and reviewed by a Gazetted Officer. These registers are also used for Central-to-State government loans.