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CMA Final · Corporate Financial Reporting · Government Accounting in India

Under the constitutional framework for Government accounts in India, the accounts of the Union Government are classified into three parts. Which of the following correctly lists these three parts?

The Union Government's accounts are divided into the Consolidated Fund of India, the Contingency Fund of India and the Public Account of India. These are the three constitutional funds. Revenue, capital and loan accounts are only divisions within the Consolidated Fund, and statements are reports rather than funds.

  1. AConsolidated Fund of India, Contingency Fund of India, Public Account of IndiaCorrect
  2. BRevenue Account, Capital Account, Loan Account
  3. CConsolidated Fund of India, Reserve Fund, Sinking Fund
  4. DAnnual Financial Statement, Appropriation Account, Finance Account

Explanation

The Constitution provides for the Consolidated Fund of India (Article 266(1)), the Contingency Fund of India (Article 267) and the Public Account of India (Article 266(2)). Option B lists sub-heads within the Consolidated Fund, not the three parts. Option D lists statements, not funds.

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