Chapter -8 Transfer Entries
PART-I
1. Transfer entries, which are entries intended to transfer an item of receipt or charge from the
account of a work in progress or a regular head of account to the account of another work or head,
are necessary.
a. Account of a work- When surplus material at work A is transferred to Work B/Stock
Entry Debit Credit
Original A Stock
Transfer Entry B/Stock A
b. Transfer of receipt on one head is transfer to another head i.e. Rent Received from PWD
Bungalow was credited to License fee
Entry Debit Credit
Correct Entry 8782 0059
Erroneous Entry 8782 0216
Transfer Entry 0216 (minus credit) 0059
c. Transfer of charges on one head is transfer to another head i.e. Maintenance of Office
Building was charged to Housing
Entry Debit Credit
Correct Entry 2059 8782
Erroneous Entry 2216 8782
Transfer Entry 2059 2216 (minus debit)
2. In order to correct an error of classification in the original accounts-B & C Above
3. Sometimes it is more convenient to classify items pertaining to several heads (or works),
under a single head in the first instance than to classify them under each from the beginning
(i) Where land revenue (0029) also consist of charges for water supply from canal, the total
amount is initially credited to 0029 and after close of the month/annual account the revenue
due to irrigation head (0701/0702/0703) are transferred to irrigation head
Entry Debit Credit
Original Entry 8782 0029
Transfer Entry 0029 (Minus credit) 0701/0702/0703
(ii) Recovery on account of storage charges
Entry Debit Credit
Original Entry Work 2059 (stock)
Transfer Entry Stock (2059) 0059/4059
4. In order to adjust, by debit or credit to the proper head of account (or work), an item
outstanding under a suspense account or under a debt, deposit or remittance head
a. (i) Unpaid Muster Roll wages under suspense Head Labour (Work) on Work A. Rs. 1500
out of the total amount of that muster roll of Rs. 5000 when remains unpaid after the
completion of work (3 months)
Entry Debit Credit
Original Work A (5000) (Cash in Hand 1500) 8782 (5000) Labour (-1500)
Transfer Entry 8782-Cash in Hand (1500) Work A (1500)
(ii) When paid
Entry Debit Credit
Original Work A (5000) 8782 (3500) Labour (-1500)
Transfer Entry Labour (1500) Unpaid wages (1500)
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
b. When an employee transfer to the jurisdiction of another account officer, his/her provident fund
account is to be transferred to new account
Entry Debit Credit
Transfer Entry (Interest) 2049 8009
Transfer entry 8009 (minus credit) 8658-PAO Suspense
When cheque/draft sent 8658 (Minus credit) 8782/8670
Another Accounts Officer 8782/8670 8009
c. Cessation of the deposit of Contractor on account of non-fulfilment of obligation
Entry Debit Credit
Original Contractor 8443
Transfer Entry 8443 4059 (minus debit)
ii. Adjustment of immediate financial assistance to family of deceased Govt. Servant-Rs. 25000.
Amount Recovered from death benefit-Rs. 20000
Entry Debit Credit
Original entry 8550 (25000) 8782 (25000)
When 20000 recovered 8782 (20000) 8550 (20000)
When write of is sanctioned for 5000 then TE 2075 (5000) 8550 (5000)
d. Division A paid amount Rs. 10000 to staff of division B rendering account to same accounts officer
and need adjustment
Entry Debit Credit
Original Other remittance (Salary of Staff of B) 8782
Transfer Entry (PAO) 8782 (B) Other Remittance 8782 (A) Other Remitt.
5. In order to bring to account certain classes of transactions which do not pass through the
cash or stock account
a. Purchase through DGSD by rendering advance payment item worth 100
Entry Debit Credit
When advance made 8658-129 (minus credit) 98 8782 Rs. 98
When item worth 100 Stock/Work Rs. 100 8658-129 Rs. 100 (Net
received credit Rs.2)
PAO of Division 8782 (Adjustable by PW) 8670
Transfer Entry on 8658-129 (-) 02
PAO Memo
b. Purchase through DGSD/by operating MPSSA (credit Purchase)
Entry Debit Credit
When Item received/close of the month Work/Stock MPSSA (TE)
When payment is made 8658-129 (Minus credit) 8782
b. credit to “P.W. Deposit” on account of balances due to contractors on closed accounts The
accounts of a contractor should be closed as soon as his contract is completed. If he does
not take final payment for more than one month after the final bill has been passed, the
amount of the work as passed on the bill should be incorporated in the Works Abstract on
the authority of the bill and the balance due to him should be removed from the accounts
Entry Debit Credit
Regular entry Contractor/Work 8782
Transfer entry Contractor/Work 8443
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
When paid afterward 8443 8782
c. for credit to Revenue heads on account of revenue not recovered in cash including lapsed
Deposits
(i) Supervision charges when item sold on credit and amount is not recovered within the
month in which item was delivered/sale was made
Entry Debit Credit
Transfer entry MWA 0059
When amount 8782 MWA (minus debit)
received(OE)
(ii) Lapsed deposit
Entry Debit Credit
Transfer entry 8443 0059
When paid later (OE) 0059 (Minus credit) 8782
6. For original debits or credits to Remittance heads based on transactions not appearing in
cash or stock accounts, e.g. transfer of tools and plant to another department or Government when
the value is recoverable from them i.e. Book Transfer (Department A to B)
Entry Debit Credit
Original Entry Other Remittance Tools & Plant Ledger
PAO/Pr. AO will raise a claim Other-remittance 2059/4059 (minus
debit)
CAS on the advice of Dep B 8675 (B) 8675 (A)
7. For credit to the heads concerned of the several percentages leviable under the rules, e.g.,
those on account of supervision (when not recovered in cash), establishment, tools and plant and
workshop charges. Monthly expenditure on a work A is 10 lakh was paid to contractor against the
total estimate of Rs. 1.5 crore and departmental charge leviable is 12% then
Entry Debit Credit
Original entry 4059 (1000000) 8782 (1000000)
Transfer entry Work/Workshop Account (120000) 0059/2059 (minus dr) (12000)
8. Interest on GPF
Entry Debit Credit
Transfer entry 2049 8009
PART-II
1. Transfer entry is used when at-least account of that particular month in which transaction
took place is closed.
2. Because if the accounts of the month is open, the correction will be made by drawing the pen
through the incorrect entry and inserting the correct one in red ink between the lines.
3. Further, there are two types of error.
(i) First one, these errors can be corrected any time before close of the account of the year
(supplementary accounts)
(ii) Second one consist the errors which can be corrected at any time before the yearly
accounts and even after close of the account of that particular year in which transaction took
place and second
4. First class- error which properly belongs to a revenue or expenditure head is wrongly
classified under another revenue or expenditure head in the accounts.
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
5. Second class- the error affects the receipts and disbursements of another Government or
the transactions of a commercial department and error which affects a debt, deposit, and suspense
or remittance head.
Class of error Rectification of error Actual entry
First class or second class by using minus credit (revenue by using credit (revenue head)
when correction to be made head) or minus debit or debit (expenditure head) as
before the close of yearly (expenditure head) the case may be
account
Example First class-
(1) Revenue Head (-) credit 0216 credit 0059
an income of 0059 was
wrongly credited to 0216 or
vice versa
Expenditure Head
(1) an expenditure of 2059 was (-) debit 2216 debit 2059
wrongly debited to 2216 or vice
versa
Example Second Class-
GPF contribution was wrongly (-) credit 0059 credit 8009
credit to Govt. building or vice
versa
Expenditure head
An expenditure of residential (-) debit 8011 debit 2216
building was debited to
Insurance and Pension Fund
or vice versa
when correction to be made minus credit (revenue head) by using credit or debit
after the close of yearly debit and credit (Expenditure
account head) where permissible
First class- not permissible
Second class- as given in
columns
Example Receipt
An income of 0059 was debit 8009 credit 0059
credited to 8009
An income of 8009 was (-) credit 0059 credit 8009
credited to 0059
Expenditure
An expenditure of 2059 was credit 8009 debit 2059
debited to 8009
An expenditure of 8009 was credit 0059 debit 8009
debited to 2059
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
6. Rectification in revenue head is always made by (-) credit whether the account of the year is
closed or not.
7. Where expenditure pertaining to Debt, deposit or remittance head is erroneously debited to
expenditure head cannot be reduced after the close of financial year means no minus debit is
permissible under these head. Instead the corresponding revenue receipt head to be credited
Entry Debit Credit
Correct Entry 8009/8443/8550 8782
Erroneous Entry 2059/4059/2216 8782
Transfer Entry 8009/8443/8550 0059/0216
8. Where a corresponding revenue receipt head is not available (in case of Audit-there is only a
single expenditure head i.e. 2016 exists) it should be credited to head 0070 – Other Administrative
Services). An expenditure on account of GPF withdrawal was debited to Audit-2016 and account of
the year is closed
Entry Debit Credit
Correct Entry 8009 8670/8782
Erroneous Entry 2016 8670/8782
Transfer Entry 8009 0070
9. When the correction affects a head for which budget provision is obtained, the correction / transfer
may be effected by affording plus credit or minus credit under the head concerned without affecting
the actual expenditure (i.e. debit side of the head ) for the year.
Date Particular Expenditure Balance
(Credit)
01.04.21 Allotment of Rs. 500000 vide Letter No. 500000
XYZ/01.04.2021
10.04.21 Amount for Purchase of contingent items 50000 450000
30.04.21 Purchase of stationery 100000 350000
01.05.21 Additional Allotment of Rs. 50000 350000
+50000
400000
10.05.21 Amount withdrawn Rs. 150000 400000
-150000
250000
NOT ALLOWED
Date Particular Expenditure Balance
(Credit)
01.04.21 Allotment of Rs. 500000 vide Letter No. 500000
XYZ/01.04.2021
10.04.21 Amount for Purchase of contingent items 50000 450000
30.04.21 Purchase of stationery 100000 350000
01.05.21 Additional Allotment of Rs. 50000 -50000 400000
10.05.21 Amount withdrawn Rs. 150000 -150000 250000
10. When a correction is permissible it should be made by a formal transfer entry, but when it is not
permissible, a suitable note of it should be made in the account concerned means where the amount
involved does not exceed Rs. 10 and also the error does not affect DDR head. Where the error
affects a DDR head rectification will be made a formal transfer irrespective of AMOUNT involved and
PERIOD lapsed.
11. Formal Transfer Entry
(i) CAM 34
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
(ii) Survey Report CPWA 18
(iii) Remarks on final bill of contractor on closed account
12. All transfer entries prepared during a month should be entered in the Transfer Entry Number
Book (Form CAM 35). The effect thereof should be reflected in the monthly accounts of that month
after preparing a ‘Summary of Transfer Entries’( Form CAM 36)
13. A single transfer entry may cover a number of adjustments and corrections, provided that all
the necessary particulars are set forth in respect of each. However, on one side of every transfer
entry, there should be only one major head but there may be a debit or credit to various other heads
or vice versa.
On account of joint establishment and general tools and plant a division has incurred Rs.
500000 during the year 2020-21. At the close of the year, these charges will be shared by
2216 and 3054 on pro-rata basis on the basis of works outlays in these head. Suppose it
50:30:20 in respect of 4059, 3054 and 2216 then
Entry Debit Credit
Charges on account of joint establishment 2059 (500000) 8782 (500000)
Pro-rata share of joint establishment at the 3054 (150000) 2059 (250000)
close of the year by Accounts officer 2216 (100000)
14. Certain Transfer Entry Order may be initiated by the Sub-divisional Officer are countersigned
by himself in token of acceptance.
15. Transfer entries should receive the special attention of Divisional Officer so that habitual
errors / misclassifications in the accounts of subordinate officers may not remain unnoticed.
16. In cases of corrections involving a reduction in the charges against the estimate of work it is
essential not only that full particulars of the vouchers and accounts in which the erroneous charges
originally appeared are specified, but also that the circumstances in which the charges were
allocated wrongly under the estimate for the work are set forth clearly
a. An amount of Rs. 500000 was spent on work A. later on it was revealed that an amount of
Rs. 10000 was paid in excess than actual and need recovery
When work in progress
Entry Debit Credit
Original entry Work A/Contractor 8782
Transfer entry Contractor Work
When work Closed
Entry Debit Credit
Original entry Work A 8782
Transfer entry MWA Work
On Recovery/Write off 8782/Loss MWA (Minus debit)
17. In case a bound book of CAM 35 is not used for entering each year’s monthly Summary of
T.E.s then at the end of the year the monthly sheets of the document should be arranged in the order
of the months and bound into a convenient volume.
18. No transfer should be made from one sub-head to another in the accounts of a work except
on the authority of a formal Transfer Entry Order approved by the Divisional Officer. For example
Earth work to brick-work, electric to plumbing etc. and vice versa. In such case order should be filed
with the Works Abstract for the month in which the transfer is effected and it should not be entered
in the Transfer Entry Book.
19. Suspense head “Land Acquisition” is cleared by debit to the final head “land” within the
accounts of work
20. transfer entry orders- in triplicate
(i) to the Pay and Accounts Office (ii) transfer entry book (iii) the third may be pasted in the
Suspense Register.
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Prepared by Deepak Kumar Rahi, AAO (Patna/Bihar)
