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[Cites 0, Cited by 0] [Section 8] [Entire Act]

State of Madhya Pradesh - Subsection

Section 8(8) in The M.P. Housing Board Accounts Rules, 1991

8.1Relation to General account of the Board. - 8.1.1 Each factory shall be treated as a separate operational unit which is required to be self sufficient. Funds made over to the factory by head office shall be treated as an investment and brought to account in the books of the latter under a separate account head "Investments in Board's Factories".
8.1.2Finished goods transferred from the factory to the stores of various Divisions of Housing Board shall be brought to account under the following account beads :-
Books of Factory - Debit Transfer of Goods to "divisional Stores" percontra credit to Stock of Finished Goods.
Books of Divisions - Credit "stock of Factories in Transit Debts Accepted"under the major head "Stock and Stores" per contradebit to "Stock Articles" under the same major head.
On the basis of the debits appearing in the monthly account of the Factory (supported b v Gate Passes and acknowledgement of Store Keeper of Divisions) the F.A. and C.A.O. shall provide working capital of equivalent sum to the Factory debiting "Stock and Stores-Stock of Factories in Transit Debits raised against Divisions". These payments towards making good the working capital shall not be treated as investments. These debits shall be paired off with the corresponding credits in the books of the Divisions referred to above.To help evaluate performance of the factories interest shall be charged by the Factory from the General Funds of the Board on transfer of fund delayed beyond one week from the date of rendering of accounts by the Factory. An advance copy of monthly accounts supported by indents shall be sent to the F.A. and C.A.O. direct by the Factory simultaneously with rendering of account to the Circle Officer.
8.1.3Working capital for each factory shall be sanctioned by the Board. To impose financial discipline the factory shall be required to operate with such working capital. In the event of an emergency funds may be provided in the shape of loans by the F.A. and C.A.O. on application of the Factory Manager submitted through Circle Officer and subject to sanction of Housing Commissioner. In the normal course such funds are available from internal sources on payment of interest. In order to work out the true financial results of working of factories, funds made available by F.A and C.A.O. from General-Funds may be placed on the same footing for internal control purposes. Accordingly, these loans shall carry interest at such rates as may be prescribed by the Board.
8.1.4Transactions arising in the books of factories which are adjustable in the books of F.A. and C.A.O. (e.g. Provident Fund recoveries) shall be settled in cash. The principal shall apply mutatis mutandis to transactions with other accounting centres in the Board.