Account Codes Account Head - HPSEB

1 Account Codes Account Head 1 HIMACHAL PRADESH STATE ELECTRICITY BOARD chart OF ACCOUNTS CONTEN Subject Subject code Page No. INTRODUCTION 1:00 STRUCTURE OF CODIFICATION SCHEME 2:00 APPENDICES APPENDIX 1 chart OF ACCOUNTS APPENDIX II GUIDELINES FOR THE USE OF chart OF ACCOUNTS APPENDIX III Schedule1 Additional Of New Account heads In The chart Of Account Schedule 2 Deletion Of Sub Account heads From chart Of Accounts APPENDIX IV Detail Of Scheme Codes And Location Codes APPENDIX V Additional of new Account heads /deletion of old Account heads /scheme Codes inserted/issued in the chart of accounts upto 13th march, 2003.

2 Account Codes Account Head 2 INTRODUCTION This report provides a chart of accounts (COA0 for the Himachal Pradesh State Electricity Board ( HPSEB ) in accordance with the structure recommended under Electricity (Supply) Annual Accounts Rules, 1985. APPROACH For the preparation of this report, A F Ferguson and Co. (AFF) carried out the following steps:- (a) The present accounts codification scheme and Account heads used. (b) The nature of Account head and their operation. 2. Using the chart of accounts prescribed under the Electricity (Supply) Annual Accounts Rules, 1985 as a base, AFF has reviewed the additions alterations and deletions made by HPSEB in the existing COA with a view to ensure that these conform to fundamental scheme and structure of prescribed CAO and the accounting policies.)

3 STRUCTURE OF THIS REPORT This report has been organized as follows:- (1) This structure of accounts codification scheme for the chart of accounts is presented in section 2. (2) The detailed chart of accounts is provided in Appendix I (3) Guidelines for the use of chart of accounts have been provided in Appendix II Account Codes Account Head 3 TRUCTURE OF CODIFICATION SCHEME This section provides details of codification scheme for the chart of accounts (CAO). Account code The Account head is made up of a five digit code . The coding scheme is explained below.

4 (1) First and second digits indicate the Account group. (2) First and second digits along with the third digit indicate the main Account code . (3) Fourth and fifth digits indicate the sub-accounts within each main Account code . (4) The main Account code along with the sub- Account Codes form the specific Account code for an Account head. LOCATION code All accounting units shall be assigned a specific location code . This code will be preprinted on all accounting documents in use at the location as the code will remain the same for all the transactions at the accounting unit.

5 The location Codes have been assigned in such a way that they also denote the function performed b y the operations under the accounting unit. The following function and their respective location Codes have been identified. (1) Investigation projects 100 to 199 (2) Hydel generation Construction 200 to 299 (3) Transmission and distribution construction 300 to 399 (4) Hydel generation operations 400 to 499 (5) Transmission/operation/distribution O & M 500 to 599 (6) Carrier & Communication M & T 600 to 699 (7) Chief Engg. & Civil & Technical P & D Units (C&E) Architective cells.

6 800 to 899 (8) Head office 900 to 999 Account Codes Account Head 4 USE OF Codes An accounting unit shall record its transactions under the chart of accounts in the manner discussed below. (1) Each accounting unit shall be assigned a location code . Location code will be a 3 digit code . (2) The location code of a unit shall be preprinted on all accounting documents in use at that unit. (3) The use of location code is mainly to segregate on unit from another at the time when trial balance or accounts statement/summaries from various accounting units are received at the compiling section of head office.

7 Hence at the time compiling accounts summaries, if the location code is mentioned on the trial balance/accounts summaries, schedules, statements, the location from which these have been received can easily be identified. (4) All inter unit advices raised by a location must bear the location code so that the receiving unit can identify the advice. (5) For all inter unit transactions, two location Codes are involved. (a) Location code of the unit in which the transaction originates. (b) Location code of the unit to which the transaction is debited or credited (unit wherein the transaction is responded to) (6) The location Codes mentioned for each accounting unit will also be used for segregating the transactions function wise at the time of compilation.

8 BLANKS PROVIDED IN THE chart OF ACCOUNTS. Blanks have been provided in the COA at the Account group, main Account head as well as at the sub- Account head level so that wherever required, new Account heads can be introduced at the appropriate levels. The procedure for introduction of new Account head in the COA has been presented in Appendix III, schedule 1. GUIDELINES FOR INTRODUCTION OF NEW ACCOUNTS The chart of accounts provides a comprehensive list of Account heads . However, if the Board observers that any of its transactions cannot be booked under any of the existing Account heads or that they are required to be booked with greater Account Codes Account Head 5analysis, new accounts, as may be necessary shall be introduced.

9 The purpose and usage of each new Account head introduced shall be clearly defined by the board. Any main Account code or sub Account code or sub- Account code so introduced must be within the concerned Account group. Any new main Account code or sub Account code introduced by the Board can be reclassified within the same Account group or deleted at any time thereafter. Introduction of new Account group shall require prior approval of the central Government. Any approval by the Ministry of Energy in this regard shall be in consultation with the C&AG and also the Concerned State Government.

10 DELETION OF Account code The Board shall not be permitted to delete any Account head from the prescribed chart of accounts. This prohibition shall apply even in cases where the Board does not have the type of transactions covered by an Account . The sub Codes within a main Account group can be deleted as per the procedures outlined in Appendix III, Schedule 2. chart OF ACCOUNTS Account Codes Account Head 6 Account code Account Head 10. Fixed Assets Land and Land Rights Land owned under full title Land held under lease.