CHAPTER XXVI
RECONCILIATION OF PRICED LEDGERS WITH GENERAL BOOKS

2601. A reconciliation should be effected of the debits, credits and balances in the Priced Ledgers and the corresponding figures in the General Books of the Railways.

2602. With the introduction of Electronic; Data Processing, the reconciliation is done by listing up the entries in the Priced Ledgers monthly, as regards receipts, issues and balances and comparing these figures thus obtained with those available in the financial accounts. The method that should be adopted is set out in Paragraph 2604 et. seq. and the reconciliation is effected in two stages :
(i) A monthly reconciliation of receipts, issues and balances in Priced Ledgers as per consolidated group wise and category wise summary (without details for individual Priced Ledgers) with those in General Books through Group Ledgers; and
(ii) An annual reconciliation of total receipts, total issues and the balances in the Priced Ledgers (both opening and closing) with those in General Books through the medium of Group Ledgers,

2603. The above stages are illustrated by the accompanying diagram.

CHART ILLUSTRATING THE RECONCILIATION

2604. Deleted.

2605. Separate sets of Group Summaries should be maintained for each of the detailed divisions of receipts and issues as illustrated by the chart below showing the total receipts and the total issues GroupWise and categorywise :

The chart above shows the divisions and sub-divisions of 'Ordinary Stores' only. Other categories will be divided into divisions and sub-divisions similar to Ordinary Stores as required.

2606. The Group Summary for purchases in India should have columns to show under each group the value of 'IMPORTED STORES PURCHASED IN INDIA' separately from the value of  'STORES OF INDIAN MANUFACTURE OR INDIGENOUS ORIGIN'

2607. The several divisions and sub-divisions of receipts and issues are necessary :
(a) To enable the Controller of Stores and the Depot Officers to exercise proper control over their stocks;
(b) To prepare the consolidated journal slip as per revised classifications; and
(c) For the correct preparation of the Annual Statement of Stores Transactions (S. 3001) and the Annual Statement of Expenditure on Purchases (S. 2943) for submission to the Railway Board.

2608. Totals of the postings under each group summary should be struck for each fortnight/month as may be fixed by the General Manager.

2609. Monthly Abstract of Group Summaries.—The totals for each period under each group, a group summary should be posted periodically in following form in order to abstract together the transaction for a month under each division and sub-division of stores as shown in the chart in Paragraph 2605 above. A cross total should be struck for each period.

Form No. S. 2609

MONTHLY ABSTRACT OF GROUP SUMMARY FOR THE MONTH OF.............................................................
                                                                            RECEIPTS/ISSUES

2610. Deleted.

2611. The vouchers for the period which will form the record of the Accounts Office should after being processed, be carefully arranged group by group and filed properly,

2612. Deleted.

2613. Deleted.

2614. No Departmental Summary of Receipts or Issue (S. 2702 or S. 2705) should be sent out of departments without the  reconciliation's with the Group Summary for the period having been carried on or the transactions of the period to which the debits or credits summaries relate. If there is any discrepancy, the Departmental Summaries of Issues and Receipts for the period should not be despatched before the error or errors are traced and set right.

2615. As soon as the postings for a month has been completed, the annual abstract of Class Summaries in Form S. 2615 styled Annual Abstract of Group Summary, showing the details of transactions group wise and month wise, should be prepared. The form of register will be similar to form (S. 2608) except that, instead of the period, the months only will be shown in the first column.

2616. Subsidiary Group Ledgers.-—A separate Group Ledger should be maintained in the following form for each category and quality of stores. This should be prepared each month from the several Monthly Abstracts of Group Summaries relating to the category of stores. The opening balance for the month under each group should be brought forward from the Subsidiary Group Ledger for the previous month. This Ledger should be maintained manually by the Priced Ledger Section and filled up from the Monthly Abstract of Group Summary or Subsidiary Group Ledger furnished by the Computer Section.

Form No. S. 2616

SUBSIDIARY GROUP LEDGER FOR THE MONTH OF..................................................................................

2617. Depot Group Ledgers.—These should be prepared from the Subsidiary Group ledgers for each category of stores (only) in Form S. 2617 (which will be Similar to S. 2616) the opening balance being , however, brought forward from the Depot Group Ledger for the previous month The total of the column for receipts and issues should be reconciled with the grand total for the month appearing in the Monthly Abstract of Departmental Summaries of Receipts and Issues (S. 2706 respectively). If the Controller of Stores desires it, the Depot Group Ledgers with supporting Subsidiary Group Ledger for each category and quality of stores should be furnished to each Depot Officer concerned for his guidance.

Note :—In the case of Local Accounts Offices attached to each Stores Depot, a copy of the Depot Group Ledger (S. 2617) supported by copies of Subsidiary Group Ledger (S. 2616) for each category and quality of stores should be ser t to the Headquarters to Stores Accounts Office by the 12th of the following month to enable the preparation of  the Consolidated Group Ledger (S. 2618) for the entire line for submission to the Controller of Stores on the 15th of the month.

Form No. S. 2617

DEPOT GROUP LEDGERS

2618. A consolidated Group Ledger (S. 2618) for the entire line should be prepared from the Group Ledgers for the Depots (S. 2617) in a form similar to S. 2617 and supported by the Depot Group Ledgers should be furnished to the Controller of Stores on the 15th of the following month.

Form No. S. 2618

CONSOLIDATED GROUP LEDGER

2619. Reconciliation with General Books.—The total figures of receipts and issues in the Consolidated Group Ledger (S. 2618) should be reconciled with the total debits and credits to "Stores" (vide paragraph 2707) in the Stores Journals and in the General Books of Accounts of the Railway.

2620. Reconciliation of Monthly Closing Balances.—The General Books will show for each suspense head of capital account the balances brought forward ab-initio. The closing balance under the head 'Stores' will be reconciled with the closing balance appearing in the Consolidated Group Ledger (S. 2618). If this agrees, it may be generally assumed that the closing balances in the General Books agree with the balances as represented by the priced ledgers. This does not, however, take into account any errors of compensating nature and cannot be a substitute for proving that the totals of the balances as extracted directly from the priced ledgers would agree with the corresponding figures in the financial accounts. For this purpose, a statement showing the totals of opening balance, totals of receipts, totals of issues and totals of closing balances for each group should be prepared from the transactions posted in the priced ledger. This statement should also give the totals for each group, category and the grand totals for the depot. The figures in ihe statements 'Sectional Group and Category wise summary for the depot from the priced Ledgers' should be reconciled with the depot group letters, la the event of any discrepancy, a detailed list of transactions should be called for, if so required, and a detailed item by item check of the summary with the priced ledgers should be done and errors rectified.

2621. A certificate of the reconciliation with the General Books should be endorsed by an Officer of the Books Section on a copy of the Consolidated Group Ledger (S. 2618) and recorded in the Stores Accounts Section.

2622. Use of the Group Ledgers by the Executive.—The Controller of Stores and each Depot Officer should maintain charts upon which the monthly closing balances for the entire depot and for important groups and categories of stores should be plotted up to date, from the Consolidated or Depot Group Ledger and Subsidiary Group Ledgers received from the Stores Accounts Office. The chart for 'Ordinary Stores' in the Controller of Stores office should also contain a graph representing 40 per cent of the issues of the previous twelve months, which should be kept upto date. This line is the efficiency mark with which the graph of the actual balances of 'Ordinary Stores' of all depots should closely coincide and should generally not exceed. The amount representing 40 per cent of the annual issues is the authorised Stores Balance fixed by the Railway Board.

2623. Annual Reconciliation of the Priced Ledgers.—During the course of the monthly reconciliation, the totals for each group (i.e. opening balance, receipts, issues and the closing balance) is reconciled with the balances in the General Books. However, at the end of financial year, a group wise and category wise summary is prepared for purposes of record indicating the details of opening balance, receipts, issues and closing balance for the year and is reconciled with the General Books figures.

2624. Deleted

2225- Deleted

2626. Deleted

2627. Deleted

2628. Reconciliation Procedure.—The total of the sectional lists of balances of the priced ledgers prepared by the Computer Centre should then be compared with the closing balance appearing under the group in question in the Subsidiary Group Ledger (i.e. for the category and quality of stores concerned). Thus, when the list of balances of priced ledgers of each group for each category, has been reconciled with the Subsidiary Group Ledger for the category, it may be rightly regarded thzt the priced ledgers have been proved with the General Books provided, of course, the balances for March in the Consolidated Group Ledger had agreed with the General Books as laid down in paragraph 2619.

2629. Deleted

2630. Deleted

2631. Deleted

2632. If the difference is heavy, it should be investigated. Differences which cannot be traced in spite of all investigation and efforts may be allowed to be adjusted against the Stock Adjustment Account under the procedure laid down in paragraph 2634-S, provided that further expenditure on staff and processing for the settlement of the discrepancy will be disproportionate to the amount involved. Such adjustments against the Stock Adjustment Accounts should be currently reported to the General Manager as provided for in the Note under paragraph 2742-S.

2633. Procedure of Adjustment of Discrepancies.—After the reconciliation has bsen effected the incorrect entries in the ledgers should not be corrected, a note in a separate register should be maintained showing the date of occurrence of the discrepancy and the date of correction of the mistake.

2634. After the reconciliation of a group of stores has been completed, the manuscript register (S. 2631) should be put up to the Stores Accounts Officer for orders of adjustment against each item. The total difference in the group that are thus approved for adjustment should be posted in a Group Summary (S. 2604) and the Stock Adjustment Register.

2635. Responsibility for Errors.—During this reconciliation a note should be kept of every error discovered and all errors should be traced to the persons responsible for the same. A report of all such mistakes should be put up to the Officer for information as soon as the reconciliation of each group has been completed.