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CMA Final · Corporate Financial Reporting · Government Accounting in India

Government accounts in India are maintained in three parts. Which pairing of part and typical content is correct?

The Public Account records transactions in which the Government acts as a banker or trustee, such as provident funds and deposits. Withdrawals do not need Parliamentary appropriation. Revenues and market borrowings belong to the Consolidated Fund, and the Contingency Fund is only an emergency imprest.

  1. AConsolidated Fund - transactions of small savings and provident funds
  2. BPublic Account - transactions where Government acts as a banker, such as provident funds and depositsCorrect
  3. CContingency Fund - all tax and non-tax revenues of the Union
  4. DPublic Account - loans raised by the Government through market borrowings

Explanation

The Public Account (Article 266(2)) records money received by the Government as banker or trustee, such as provident funds, deposits and small savings; these need no Parliamentary appropriation for withdrawal. Market borrowings and revenues belong to the Consolidated Fund. The Contingency Fund is only an emergency imprest.

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