Accounting (Double Entry)
Application under development
- There are two forms of accounting methods: Cash and Accrual based.
- Present method followed in municipal bodies is cash basis
- Mandatory reforms of the Urban Agenda: Accrual based double entry system of accounting in municipal bodies / urban local bodies
- Controller and Auditor General (CAG) Supervises accounts and auditing in all urban local bodies .
- CAG constituted Task Force for prescribing the budget and accounting formats .
- CAG recommendations in the National Municipal Accounting Manual (NMAM).
- National Municipal Accounts Manual enable the States to develop specific municipal accounts manual
- Accounts for the assets & liabilities are maintained
- Amount of receivables is available as demand raised is introduced using journal entry.
- Amount of payables is also available using journal entry.
- The real state of assets, liabilities, receivables or payables is shown.
- Accounting data is represented in following relationship
Assets = Liabilities + Municipal Funds
- The equation must be in balance after every recorded transaction in the system.
- Accounting information base is double entry system. Any transactions affects asset, liability or other element.
- Two-sided effect are recorded in appropriate accounts.
- Recording is of a debit-credit rules to all accounts.
- Accounting equation is maintained after each transaction
- Creation of fund, function, field, account heads.
- Creation of real accounts, nominal accounts (ledger accounts)
- Mapping of Transaction type ( Receipt, Expenditure, Asset, Liability), Account head, account to debited, account to be credited
- Creation of all type of receipt vouchers
- Creation of all type of expenditure vouchers.