The methods of entry in the register of adjustments are as follows:In case (1), the adjustment shall be made by entering the amount in the space for 'Add entries' in the column for the head to which the amount is to be added and again in red ink in space for 'Deduct entries', in the column for the head from which the amount is to be deducted. Both entries will be made on the receipt side, if the amount is to be transferred from one head of receipt to another and both will be made on the expenditure side, if the amount is to be transferred from one head of expenditure to another.In case (2), the adjustment shall be made entering the amount in the space for 'Add entries' in the column of the expenditure side for the head to which charges on account of the particular expenditure incurred are to be taken and on the receipt side in the space for 'Add entries' under the head 'Advances recovered'. A corresponding entry shall be made on the receipt or credit side of the advance ledger (Form No. XVIII) of the person by whom the expenditure was incurred and to whom the amount adjusted was originally advanced.In case (3), an adjustment shall be made only when the income was originally received or the expenditure incurred in the same year in which the refund or recovery is made. When income is refunded the refund shall be charged to the major head of expenditure, corresponding to the major head of receipt to which it was originally credited or if there be no such head to 'Miscellaneous'. The amount shall then be deducted in the adjustment register from both the head of receipt to which it was originally credited and the head of expenditure to which the refund is charged. When expenditure is recovered, the amount shall he credited to the major head of receipt corresponding to the major head of expenditure to which it was originally charged of if there be no such head to 'Miscellaneous'. The amount shall then be deducted in the adjustment register from both the head of expenditure to which it was originally charged and the head of receipt to which the recovery is credited.Adjustments made by deduction in the abstract register shall always be written in red ink.Loss of Money by Embezzlement, Theft or Otherwise
