Establishment in Public works Department ( PWD)

The officers, officials and other workers can be divided into following classes of establishment
1 Regular Establishment a) Permanent b) Temporary
2 Work charge Establishment
3 Contingent Establishment
4 Daily Labour
Permanent Establishment
Meant for general supervision and maintenance of works. Provided in an office as per the sanctioned
strength.
Temporary Establishment
Provided to supplement the permanent establishment. To meet the demand on account of extra work. For
continuity of service sanction is required on yearly of after every six months.
They are governed by C.S.R rules in respect of Pay, T.A, D.A, Leave or G.P.Fund.
[Pension not paid by JKPCC for employees on deputation]. Services can be terminated with one month
notice.
Work charge Establishment
Engaged directly on particular work For actual execution. Pay drawn on Work charge establishment Bill.
Pay is charged direct to work for which provision 1.5% to 3 % is made in detailed estimate. Eg Chowkidar,
Works supervisor, mates etc.
The services can be terminated any time with 10 day notice when employed on monthly basis otherwise no
prior notice is required for termination.
Entitled for T.A actually spent .
There is no pension or gratuity.
No leave admissible except fifteen days casual leave in a year.
Contingent Establishment
Certain category of employees like Dak Runners , Khalasies are not provided in permanent establishment or
may not be sufficient. For smooth running of office work DDO may engage these persons . They are paid
from Head office contingencies on Contingent rolls. T.A is paid as per actual
Daily Labour
For execution of works Departmentally Masons, Carpenters , Mazdoors, Bhishtis are engaged on daily
rate basis. They are categorized as daily wagers.Their attendance is recorded daily on muster roll.
Work done is measured and recorded on the back side of the sheet.
They are paid on weekly of fortnightly or monthly basis.
Payment is made by debit to work on which they are engaged.
They are not entitled to any leave or allowance.
These persons are let off on completion of work
Their service can be terminated any time.

Accounting Procedure
Systematic ways are adopted to keep accounts of Expenditure and revenue. The system is divided into two
categories
1 Civil Accounting system:- Bills presented at Treasury for payment through Banks
2 PWD accounting System:- Cheques presented to treasury for payment to Contractors.
2b Slightly different system is adopted to maintain forest account.
All revenue collected on behalf of government is deposited in banks through treasury.
Account of receipts and expenditure is submitted to Accountant General on Monthly basis.
In Civil accounting monthly account is submitted by Treasury officer
In PWD accounting system account is submitted By DDO (Executive Engineer)
Head Of Account
In order to maintain proper account of income and expenditure, it is necessary that all similar transactions are
grouped together under what are known as HEAD OF ACCOUNT.
Main unit of classification of revenue and Expenditure are called Major Head of account.
Major head is divided into MINOR Heads and Detailed Head of account
Major Heads
Receipt 0020 - 0810… 1606
Expenditure Revenue 2011 - 2435 …….3606
Capital 4000-4046….8999
CASH
Cash includes legal tender coins, currency notes, cheques payable on demand, Reserve bank government
drafts and demand drafts, postal orders and Revenue stamps.
Cash book
Transaction relating to receipts and payments are entered in a devised form called cash book.
Transaction relating to main works are recorded in Main cash book.
Subsidiary Cash Book
The bills in respect of Pay and allowances of regular establishment in an office are presented to treasury
and gets amount for disbursement. The transactions related to such receipts and payments are recorded in a
separate cash book called subsidiary cash book.
Cancellation of Cheque
Cheque issued for some work done or supplies made , may be cancelled
1 Time barred Cheque……. 3 months after the month of issue [ Bank cheque 90 days]
2 Cheque issued incorrectly
3 Cash payment is requested by payee.
For cancelled cheque minus entry is made in cash book on payment side to square cash book.
Renewal of cheque
When new cheque is issued in lieu of cancelled cheque. The entry is made in cash book in red ink with out
entry in bank column. [ i.e with out showing amount on payment side]
Cash Balance [ For opening & closing of Cash Book]
Cash Comprises of
1 Cash in chest [coins, currency notes]
2 Money orders , Postal order
3 Revenue Stamps
4 Demand Drafts, Government Cheque
5 Cheques payable on demand
6 Outstanding balance of Imprest and temporary advance.
Following not considered as cash
1 Postage stamps
2 Fixed deposit receipt.
3 bonds and national saving certificates.
Imprest & imprest Cash book
It is a standing advance of fixed amount { maximum Rs.1000 at a time} given to an officer/official to make
certain class of petty payments .
Also called permanent Advance or permanent imprest.

Temporary Advance
It is an Remittance / advance given to an officer/official to make certain class of payments against passed
vouchers. It may be payment of labour on muster roll, pay bill of work charge establishment or any other
voucher connected with the execution of work.
Payments made for passed vouchers only. The account is rendered immediately after making the payment.

Debit & Credit

Debit means expenditure and Credit means receipts.
When payment is made for some work or supplies the amount is shown as expenditure and debited to work.
Credit it is amount received for the work or amount owed to the work.

A debit note or a Credit Note can be issued in 2 situations –

1. When the amount payable by buyer to seller decreases –There can be a change in the
value of goods after the goods are delivered and invoice is issued by the seller. This can
be due to a return of goods or due to the bad quality of the goods delivered, etc. In this
case, the value of goods decreases due to which a Debit Note is issued by the purchaser
to the seller. The Debit Note provides details of the amount of money debited from the
sellers’ account and also states the reason for the same. The reason behind this – In the
purchaser’s books of account the seller will have a credit balance. When a debit note is
issued the credit balance of the Sellers account decreases, thus reducing the seller’s
balance. It means that that lesser amount is required to be paid by the buyer to the seller
to settle his liability. Thus debit note reduces the liability for the buyer. The seller issues
a Credit Note as a response or acknowledgment to the Debit Note
2. When the amount payable by buyer to seller increases-When the value of invoice
increases due to extra goods being delivered or the goods already delivered have been
charged at an incorrect value a Debit Note is required to be issued. The Debit Note, in
this case, is issued by the seller to the buyer. And the buyer as an acknowledgment to the
receipt of Debit Note issues a Credit Note. The reason behind this – In the seller’s books
of account the buyer will have a debit balance. When a debit note is issued the debit
balance of the buyer’s account increases. It means that more amount is required to be
paid by the buyer to the seller to settle his liability. Thus, credit note increases the liability
for the buyer.