Accounting Process - KERALA Accrual Based Double Entry The method of accounting whereby revenues and expenditures are identified with specific periods of time, such as a month or year and are recorded as incurred, along with the liabilities and acquired assets; without regard to the date of receipt or payment of cash, distinguished from cash basis.
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Accounting Process - KERALA
Accrual Based Double Entry
The method of accounting whereby revenues and expenditures are identified with specific periods of time, such as a month or year and are recorded as incurred, along with the liabilities and acquired assets; without regard to the date of receipt or payment of cash, distinguished from cash basis.
SAANKHYA Accrual based double entry application
SAANKHYA
• Fund codes • Function codes • Functionary codes • Account codes
SAANKHYA
• Fund code Major Fund : Panchayat Fund
Minor Fund (within Panchayat Fund) :
• General Fund
• Separate Financial statement for each fund
• Only General Fund in almost all Panchayats Therefore only one set of Financial Statements
SAANKHYA
• Function Codes The various functions of the Panchayats as per the Kerala Panchayat
Raj Act, 1994.
• Birth and Death Registration
• Solid and Liquid Waste Management
• Administration
• Building Regulation
• Social Welfare etc..
SAANKHYA
• Functionary codes
SAANKHYA
• Account codes • Four types of accounts
• Nine digit code for each Account
• First digit indicates the type of account
SAANKHYA
• Accounting Documents
• Receipt Voucher
• Payment Voucher
• Journal Voucher
• Contra Voucher
SAANKHYA
• Books of Accounts
•Cash Book
•Bank Book
• Journal Book
• Ledger
SAANKHYA
Financial Statements
•Balance Sheet
• Income and Expenditure Statement
•Receipt and Payment Statement
•Cash Flow Statement
SAANKHYA
•Recording of Receivables and Payables
•Recording of Cash and Bank Balances
•Recording of Fixed Assets
•Compilation in the prescribed format of
Balance Sheet
Preparation of Opening Balance Sheet
SAANKHYA Accounting of Transactions
Taxes
• Accrual Basis
Property Tax
Profession Tax - Institutions/Professionals/ Traders
Advertisement Tax
• Actual receipt basis
Profession Tax – Employees
Entertainment Tax, Show Tax
SAANKHYA
Rent
Rent - Accrual Basis :
• Rent from buildings, Rent from Lease of
Lands
Rent – Actual receipt basis :
• Rent from Auditoriums and halls, Rent
from Staff Quarters
SAANKHYA
Fees and other Receipts
Accrual Basis :
• D&O Licence Fees, PFA Licence Fees
• Other income, if auctioned and
regular in nature
Actual receipt basis :
• All other fees and receipts
SAANKHYA
Grants Capital grants and specific purpose grants received in advance :
Eg : Development Fund, B-Fund amounts for capital expenditure
• Treated as Liability on receipt
• When utilised for Capital Expenditure – transfer to capital contribution (Liability)
• When utilised for Revenue expenditure – transfer to Revenue grant (Income)
Revenue grants :
Eg : Maintenance Fund, General Purpose Fund – treated as revenue income
SAANKHYA
Public Works
•Part Bills are debited to Capital Work in
Progress
•When completion certificate is received –
transfer as Fixed Assets
•Capital Expenditure – creation of asset or
value addition to an asset
•Revenue expenditure – Repairs and
maintenance
SAANKHYA
Fixed Assets
• All movable and immovable properties are
Fixed Assets
• Depreciation is provided on asset in Straight
Line Method
SAANKHYA
Employee Liabilities
• Expenditure is recorded on the last day of the
month
• Liability is created for recoveries, salary payable
and pension contrition, when expenditure is
recorded
SAANKHYA
Procedure at the beginning of the year
• Conversion of ‘Receivables (current)’ in to ‘Receivables (Arrears)’
• Conversion of ‘Closing stock’ into ‘Opening Stock’.
• Recording of accrual of income
• Adjustment of Licence Fees received in advance against Licence fees receivable (Current).
SAANKHYA
Procedure during the year
• Recording the receipts in cash and by Cheque/DD/Letter of Authority/ Treasury Bills
• Recording of payments in cash /by cheque/ through Treasury Bills
• Recording of contra entries for remittance in to bank/withdrawal on self cheque/ transfer from bank to bank
• Bank Reconciliation
SAANKHYA
Procedure at the end of the year
• Depreciation
• Conversion of Capital Work in Progress to Fixed Assets in respect of completed works
• Recording of closing stock’
• Provision for doubtful receivables
• Provision for goods/ services received during the year but bills received in April of next year
• Reconciliation with the Registers kept in other departments
SAANKHYA
Implementation Status
• Implemented in All Local Self Government Institutions in Kerala
SAANKHYA Integration with other applications
SAANKHYA
SULEKHA SANCHAYA
SACHITHRA STHAPANA
SOOCHIKA
SANKETHAM SEVANA
SAKARMA
SUBHADHRA SUGAMA
SAANKHYA
Integration With Priyasoft
• 2592 Saankhya Account Heads mapped with priyasoft Account Head
• Need more clarity regarding mapping
• State specific scheme can be mapped with following Receipts heads only (because only for these heads the provision is given)
'1601','8550','8658', '0049','7610','8011','8009','8443','0075','6004','8782','8671‘
• For Own Resource in PRIASoft it is already mapped with all the major heads and State doesnt have the permission to map the Own Resource
THANK YOU
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