Section 122 in The M.P. Municipal Accounts Rules, 1971
122.
(1)For the record of transactions other than a cash register of adjustments shall be opened in Form No. 81.(2)The chief adjustments are :-(a)Rectification of errors in classification.(b)The adjustment of a bill against an advance.(c)Adjustment due to refunds of income or recoveries of expenditure.These transactions shall be entered item by item in the Register of Adjustments where the total shall pass into the Abstract Registers of receipts and expenditures but before the postings are made in the Adjustment Register the net total of the receipt heads shall be agreed with the net total of the payment heads.(3)The methods of entry in the Register of Adjustment shall be as follows :-In case (a) 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 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 of the amount is to be transferred from one head of expenditure to another.In case (b) the adjustment shall be made by entering the amount in the space "add entries" in the column of the expenditure side for the head to which charge on account of the particular expenditure 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 at adjustment side of the Advance Ledger (Form No. 73) of the person by whom the expenditure was incurred and to whom the amount adjusted was originally advanced.In case (c) an adjustment shall be made only when the income was originally received or the expenditure incurred or recovery is made. When income is refunded the refund shall be charged to the major head of expenditure of receipt to which it was originally credited and if there be no such head to "Miscellaneous". The amount shall 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 be credited the major head of receipt corresponding to the Major head of expenditure to which it was originally charged or if there be no such head to "Miscellaneous". The amount shall then be deducted in the Adjustment Register from both the heads of expenditure to which it was originally charged and the head of receipt to which the recovery is credited.Note. - For above mentioned adjustments see example on Form No. <81.Investment
