Section 173 in The M.P. Municipal Accounts Rules, 1971
173.
A separate account shall be prepared annually for each establishment run by the Municipal Council in order to see that the concern is self-supporting. The account should be maintained for the financial year and should be produced before the Government auditor for check.The account shall contain the following items :-(i)Fixed capital account. - This should show all the capital expenditure incurred to the end of the financial year under the following heads, viz. :-(a)plant and machinery;(b)pipe lines;(c)buildings;(d)lands;(e)furniture and fixtures, etc.The expenditure incurred during the year should be shown separately.(ii)Trading account. - This should show all the expenditure incurred in running the business during the financial year, e.g. (1) stock at the beginning and end of the financial year, (2) expenses of production, (3) wages, (4) gross receipts, etc. The gross profit should be ascertained from this account.(iii)Incidental. - This should show the direct expenses in running the concern, e.g.-(1)interest on capital invested;(2)depreciation on machinery, buildings, etc;(3)bad debts;(4)reserve fund, etc.;and should show the net profit at the end of the year.(iv)Balance Sheet. - This should show on one side the liabilities e.g., capital invested, deposits, sundry creditors, reserve fund, etc., on the other side the assets e.g. the cash balance store at the close of the year, sundry' debtors, etc.(b)Water Works
