Accounting Manual Employee Benefits Accounting Manual-Employee Benefits

Accounting
Manual
Manual-
Employee
Benefits
TVNL
March 2012
PricewaterhouseCoopers Private Limited (PwC) has taken all reasonable steps to ensure that the information
contained herein has been obtained from reliable sources and that this publication is accurate and
authoritative in all respects. However, this publication is not intended to give legal, tax, accounting or
professional
ofessional advice. No reader should act on the basis of any information contained in this publication
without considering and, if necessary, taking appropriate advice upon their own particular circumstances. If
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Table of Contents Accounting Manual
Table of contents
1. Introduction 4
2. Pay and Allowances 5
2.1. Pay Bill Preparation 5

2.2. Disbursement of Pay 8
2.3. Disbursement of Pension (until pension trust is created) 9
2.4. Preparation of Pay Bill for Arrears of Salary on Pay Revision 10
2.5. Payment of GPF and GPF Loan Recovery 11
2.6. Payment of Other Deductions 12
3. Other Personnel Payments 13
3.1. Reimbursement of Medical Expenses for Treatment in Hospital 13

3.2. Accounting for Reimbursement of Travelling Expenses 14
3.3. Leave Travel Concession (LTC) 15
3.4. Settlement on Cessation of Employment 16
3.5. Loans and Advances 18
3.6. Compensation for death, injury by accident and for specified diseases 19
4. Year end entries 20
4.1. Accounting treatment of year-end activities 20
Appendix A. - Appendices 21
A.1. Appendix – Employee Benefit Forms 21

Introduction Accounting Manual
1. Introduction
1. This section describes the systems and procedures required to be followed in preparation and
disbursement of pay bill and other employee related expenses and their related accounting at all the
locations of the Company. The employee related expenses will include salary and allowances, overtime,
incentive, leave encashment, medical reimbursement, travelling allowance, conveyance and deductions
towards income tax, GPF, etc. It shall also include the benefits provided to the family of the employee as
per rules of the company.
2. Organization: Under the existing organizational set-up there will be an Establishment section at each of
the accounting units to undertake the processing of employee related expenses.
3. Accounting Policies
a. All personnel costs e.g. salaries, wages, company's contribution to Provident fund, etc. will be
accounted for on accrual basis except those stated below:
b. Post employment benefits like gratuity, pension, leave encashment, etc. will be accounted for on
accrual basis as per actuarial valuation.
c. Personnel costs like medical reimbursement and leave travel concession will be accounted for on
cash basis.
d. Interest earned on staff loans and advances will be accounted for on accrual basis.
Accounting Manual- Employee Benefits - TVNL

PwC 4
Pay and Allowances Accounting Manual
2. Pay and Allowances

2.1. Pay Bill Preparation
RESPONSIBILITY ACTION
Establishment Section
1. Prepare Pay Bill (in duplicate) separately for each department. Further, prepare different pay bills for
officers and staff.
2. Enter the various items of earnings in the pay bill from the sources as indicated below:
Earning Source
i Basic Pay Personnel file/last Month's Pay bill copy
ii Dearness Allowance Head Office Order
iii Overtime Allowance OT statement for the previous month from the
competent authority separately for each employee
iv Generation Incentive GM (Plant) Circular related to previous month
v Other Allowances Head Office Order/ Allowance List
3. Enter the various items of deductions in the pay bill from the sources as indicated below:
Deduction Source
i Contribution to GPF Minimum %age amount as per GPF rules (presently,
6% of basic pay)
ii Voluntary GPF Letter of authorization from employees/Last
Contribution Month's Pay Bill
iii Deduction towards-LIC - Letter of authorization from employee/Last Month's
Cooperative Society, if any pay Bill/demand certificate from co-operative
society/LIC.
iv Deduction towards Sanction Order/concerned loan register/last
repayment of loans and month's pay bill
advances and interest
thereon
v Income-Tax Assessment of taxable income in accordance with
Income Tax Act and Rules/last month's pay bill.
vi Professional Tax Rate schedule as per the relevant Act.
vii Other Deductions Source dependent on the nature of deduction.
4. Check the total strength of employees grade-wise for which the pay bill is being prepared and ensure that
number in each grade does not exceed the sanctioned strength.
5. Compute the net salary payable for an employee.

PwC 5
6. Refer the respective head office orders for appointment (including employees on deputation), promotion,
transfer, resignation, retirement, death, termination to ensure that all new employees are included in and
out going employees are excluded from the pay bill.
7. Absentee Statement - At least 5 to 6 days before the pay day, ensure that the absentee statements from
21st of previous month and upto 20th of the current month are received from all the departments for
which the pay bills are prepared. Incorporate the changes in the pay bill necessitated as a result of
absentee statement on account of half-pay leave, leave without pay, absence from duty, etc.
8. Annual Increment - Incorporate the changes in pay bill for the employees for whom the annul increment
is due for the month in which pay bill is prepared
9. Get the Pay Bill verified and passed by Accounts Officer (Establishment).
10. From pay bills of each department prepare a Pay Bill Abstract (in duplicate).
11. Prepare journal voucher on the basis of Pay Bill Abstract and raise accounting entry no.1.
12. For net salary payable as per pay bill of each department raise separate payment voucher passing
accounting entry number 2 as shown under accounting entries.
13. Put up journal voucher and payment vouchers alongwith the Pay Bill abstract and other relevant
documents to the Accounts Officer (Establishment) for approval.
14. On being passed for payment by the AO (Establishment), send the original pay bills along with the
relevant payment vouchers to the Cash and Bank section for sending advice to the bank.
15. Send the original journal vouchers and pay bill abstract to compilation section for posting in main
ledger/sub-ledger.
16. File the duplicate pay bills and duplicate journal voucher together month wise.
REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO
1. Pay Bill ER. F.1

2. Pay Bill Abstract ER. F.2
3. O.T. Statement ER.F. 4
4. Journal Voucher CON.F.1
ACCOUNTING ENTRIES
Sr Activity DR/CR Code Account Head
No.
1 Provision for Gross DR 12.01.xx Salaries A/c
Pay
DR 12.01.xx Dearness Allowance A/c
DR 12.01.xx House Rent Allowance A/c
DR 12.01.xx Electricity Allowance A/c -
DR 12.01.xx Medical Allowance A/c -
DR 12.01.xx Other Allowance A/c
DR 12.01.15 Overtime A/c
DR 12.01.11/12/13 Generation Incentive
DR 12.01.47 Compensatory Allowance
CR 54.07.21 Employees Contribution to GPF A/c
CR 54.07.19 Recovery of GPF Loan A/c

PwC 6
CR 54.07.11 Income tax deducted at source

CR 54.07.15 Professional Tax deducted at source A/c
CR 54.07.18 LIC Premium Deducted Payable
CR 54.07.20 Recovery of Premium under Group
Saving Scheme A/c
CR 68.04.xx Loans and Advances to Staff - Interest
Free A/c(by type of loans & advances)
CR 02.06.81 Recovery of Rent from Employees-
Residential Buildings
CR 02.06.83 Energy Charges Recovery from
Employees
CR 54.07.25 Net Salary Payable A/c
2 Drawl of net pay From DR 54.07.25 Net Salary Payable A/c
bank
CR 67.01.xx Bank A/c.(prepare single cheque for
each voucher department-wise)

PwC 7
2.2. Disbursement of Pay
Cash and Bank Section
1. Receive original pay bills of all the departments along with relevant payment vouchers from
establishment section.
2. Ascertain the balance available as per bank book.
3. Enter amount in the relevant columns in the bank book (payments side) duly recording the Account code
for net salary payable.
4. Make entries of the cheques in the cheque issue register and sign the cheque issue register.
5. Prepare cheques and forward along with cheque issue register and relevant payment vouchers to various
signatories for cheques.
6. Forward the cheque alongwith a list mentioning the employees’ bank account number and amount to be
credit to the bank.
REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.
1 Pay Bill ER.F.1
ACCOUNTING ENTRIES - NIL

PwC 8
2.3. Disbursement of Pension (until pension trust is created)
HR Section
1. Upon superannuation of the employees ascertain the amount of pension payable as per the pension rules
of the company.
2. Prepare pension authorization order and forward it to the establishment section.
3. Collect on annual basis life certificate from all the existing pensioners.
4. Receive pension authorization order from HR Department in respect of all the retiring employees.
5. Ascertain the amount of pension payable to the existing pensioners on the basis of last pension bill and
new retirees for whom the pension authorization order has been received during the month or as per the
pension authorization letter.
6. Incorporate the changes on account of death of pensioners, increase in pension rates or dearness
allowance rates on the basis of the orders issued by HR department.
7. Get the Pension Bill verified and passed for payment by Accounts Officer (Establishment).
8. Upon verification, forward it to the cash and bank section for making payment along with a copy of a
pension bill.
9. Receive original pension bills along with relevant payment voucher from the establishment section.
10. Ascertain the balance available as per Bank book.
11. Enter amount in the relevant columns in the bank book (payments side) duly recording the Account code
for pension payable.
12. Make entries of the cheques in the cheque issue register and sign the cheque issue register.
13. Prepare cheques and forward along with cheque issue register and relevant payment vouchers to various
signatories for cheques.
14. Forward the cheque alongwith a list to the bank mentioning the pensioners’ bank account number and
amount to be credited.
ACCOUNTING ENTRIES
Sr Activity Dr/Cr Code Account Head
No.
1 On ascertainment of pension Dr 12.06.64 Pension A/c
Cr 54.07.26 Pension Payable

2 On Payment of pension Dr 54.07.26 Pension Payable A/c
Cr 67.01.xx Bank

PwC 9
2.4. Preparation of Pay Bill for Arrears of Salary on Pay Revision
1. Receive order/sanction from appropriate authority (HR Section) for pay revision.
2. Prepare a salary revision chart which would clearly state the effect of the order/sanction on different
elements of earnings and deductions and period for which arrears are to be paid in respect of each
employee.
3. If the employee belonged to other accounting unit for whole or part of the period for which arrear bill has
to be drawn, obtain month-wise particulars of salary already paid from such other accounting unit. (No
ATD will be raised for the incidence of arrear salary paid on account of period during which the employee
belonged to other unit since the amount of incidence is not considered to be significant)
4. Prepare a Statement for Computation of Arrears Salary containing in respect of each employee separately
for every month of the period affected:
a. Amount payable at the revised scale for each element of earnings and deductions.
b. Amount already paid as per the relevant pay bill copy.
c. Difference between (a) and (b) above.
5. Record the arrears salary payable under each head of earnings and deduction from the statement onto
salary arrears abstract and prepare a Journal Voucher and payment voucher.
6. All other procedures and accounting entries remain the same as in case of normal pay bill.
1 Statement for computation of Arrears Salary ER.F.3

2 Pay Bill ER.F. 1
ACCOUNTING ENTRIES- same as in case of payment of regular pay bill

PwC 10
2.5. Payment of GPF and GPF Loan Recovery
1. Enter in prescribed schedules employee-wise details of deductions made on account of employees'
contribution to GPF including voluntary contributions and details of loan recovery from employee salary.
2. Ensure that totals are in agreement with the credits given in the pay bill abstract to the respective heads
of account.
3. Investigate and reconcile differences, if any.
GPF Section
4. Receive the monthly schedules of GPF from the establishment section.
5. Maintain an employee-wise ledger for all GPF including voluntary contributions and loan recovery from
employee salary.
6. For payment of employees' contribution and GPF loan recovery to GPF Trust, raise voucher passing
accounting entry number 1 as shown under Accounting Entries and forward the payment voucher to C&B
Section for making payment.
7. Receive payment voucher from GPF Section
8. Make payment of contribution to the GPF Trust in the usual manner and enter in Bank Book (Payment
side).
1 Pay Bill ER.F.1
2 Pay Bill Abstract ER.F. 2
ACCOUNTING ENTRIES
No.
1 Payment of GPF DR 54.07.21 Employees Contribution to GPF
Contribution and GPF
Loan recovery to GPF DR 54.07.19 Recovery of GPF Loan A/c
trust CR 67.01.xx Bank

PwC 11
2.6. Payment of Other Deductions
1. Prepare employee-wise details for different elements of deductions from the pay bill.
2. Prepare separate payment voucher for making payment of deductions which are required to be paid to
the outside authorities like income tax, Professional Tax, LIC , etc. by passing accounting entry number 1
to 3 as shown under Accounting Entries and ensure that payments matches with the account head-wise
deductions made in the pay bill.
3. Forward the payment voucher to C&B section.
4. Draw cheque for the voucher amount and complete the formalities and recordings similar to that
applicable for other kind of payments by cheque in the bank book ad cheque issue register.
5. Send the cheque to the establishment section for deposit with the concerned authorities.
6. Receive cheque from C&B Section and make payments before due dates to the appropriate authorities’
alongwith the supporting schedules.
1 Pay Bill ER.F.1
2 Pay Bill Abstract ER.F. 2
ACCOUNTING ENTRIES
No.
1 Payment of Income Tax Dr 54.07.11 Income Tax deducted at source
deducted A/c
Cr 67.01.xx Bank A/c
2 Payment of Professional Tax Dr 54.07.15 Professional Tax deducted at
deducted source A/c.
3 Payment of life insurance Dr 54.07.18 LIC Premium Deducted Payable
premium recovered A/c

PwC 12
Other Personnel Payments Accounting Manual
3. Other Personnel Payments

3.1. Reimbursement of Medical Expenses for Treatment in Hospital
Establishment section
1. Receive reimbursement claims in the standard application form from the employees. Ensure that the
claim is accompanied by the following documents:
a. certificate issued by the hospital authorities regarding admission and discharge
b. hospital prescription
c. cash memos or receipts in respect of purchase of medicines.
d. receipts for payments in respect of tests carried out.
e. hospital receipts in support of the payments made to hospital for the treatment.
2. Verify that the claim is sanctioned by the competent authority as per DoP.
3. Ensure that the patient, if not self, bears relationship with the employee within the meaning of the word
'family' and ‘dependents’ as per Company's rules.
4. Check whether the treatment is done in a hospital recognized by the Company or otherwise proper
sanction has been obtained for taking treatment in a hospital other than the recognised hospital.
5. Check whether the medicines are bought as per hospital prescriptions.
6. Reject cost of special nursing or attendant unless it is certified by the authorized medical officer.
7. Check whether bed/cabin charges etc. claimed for are admissible as per rules.
8. Check arithmetical accuracy of the bills and documents supporting the claims.
9. Pass the medical claim and stamp 'Cancelled' on the cash memos, receipts, etc.
10. Prepare payment voucher in respect of all the medical claims received during a specific period
(weekly/fortnightly/monthly) along with a list of employees and amount payable to them and their
respective bank account numbers.
11. Pass accounting entry number 1 as shown under Accounting Entries and forward the payment voucher to
cash and bank section for making payment.
12. Receive the payment voucher and draw cheque for the total amount and advice the bank to credit the
account of the employees’ bank accounts.
Nil
ACCOUNTING ENTRIES
No.
1 Payment of Medical Expenses DR 12.06.xx Medical Expenses A/c.
CR 67.01.xx Bank A/c

PwC 13
3.2. Accounting for Reimbursement of Travelling Expenses
1. Receive T.A. Bill from the employees in the prescribed form with relevant supporting documents.
2. Ensure that bill is complete in all respects and requisite certificates have been furnished.
3. Ensure that controlling officer have countersigned the bill in token of acceptance of the journeys shown
in the bill.
4. Ensure that the purpose of the journey has been clearly stated in the bill.
5. Scrutinize the T.A. bill thoroughly with particular reference to the rules and orders of the Company.
6. Return the bill to the claimant with objection if any.
7. Check whether any T.A. advance is outstanding against the employee .If so, make necessary deduction
from the claim amount
8. Check the arithmetical accuracy of the bill.
9. Prepare a journal voucher for the amount of claim adjustable against T.A. Advance passing accounting
entry number 1 as shown under Accounting Entries. In cases where the claimed amount is less than the
T.A. Advance amount, advise the balance deduction from the salary.
10. Prepare a payment voucher for the net amount of claims payable passing accounting entry no.2 as shown
under Accounting Entries.
11. Enter the bill details in the TA Register for checking that same bill is not produced twice.
12. Send the bills and voucher(s) to Accounts Officer for his approval.
13. Post to Loans and Advances Sub-Ledger, the claim against T.A. advance from journal voucher or the
amount of T.A. advance refunded from receipt voucher or from salary sheet.
14. Send the journal voucher to compilation section.
15. Send the payment/receipt voucher to cash and bank section for making the payment or obtaining the
refund, as the case may be.
1 Loans and Advances Sub- Ledger ER. F. 5
ACCOUNTING ENTRIES
No.
1 Adjustment of T.A. advance DR 13.13.xx Travelling Expenses
against Claim
CR 68.04.17 Travelling Advances
2 Payment of net Claim DR 13.13.xx Traveling Expenses
amount
CR 67.01.xx Bank A/c.

PwC 14
3.3. Leave Travel Concession (LTC)
1. Receive approved LTC claim from the employee and LTC sanction order from the HR department.
2. Confirm the accuracy of the claim amount and its admissibility as per Company's rules.
3. Raise payment voucher passing accounting entry number 1 as shown under Accounting Entries and
forward the LTC claim bill along with payment voucher to Cash and Bank Section for processing payment
in the usual manner.
4. For adjustment of LTC advance, raise journal voucher passing accounting entry number 2 as shown
under Accounting Entries.
1 Journal Voucher CON.F.1
ACCOUNTING ENTRIES
No.
1 Payment of Leave Dr 68.04.xx Loans & Advances to Staff-Interest
Travel Concession Free (Adv. Against LTC)
2 Adjustment of LTC Dr 12.06.62 Leave Travel Concession A/c. (equal
advance against actual to advance amount)
expenses Cr 68.04.xx Loans and Advances to Staff-Interest
Free(Advance against LTC)

PwC 15
3.4. Settlement on Cessation of Employment
HR Section
1. Forward No due certificate and final settlement claim in respect of the concerned employee in respect of
gratuity, leave encashment and other dues, to the Establishment Section for processing of payment.
2. Verify the final settlement claim as received from the HR section on the basis of the Rules and
Regulations of the Company and check its arithmetical accuracy.
3. No dues certificates shall be verified with the books of account.
4. Enter the particulars in the final settlement claim register.
5. Prepare a voucher for net amount and get if passed by the appropriate authority. Pass Accounting Entry
No.1.
6. Enter the particulars of the payment voucher in the Final Settlement Register.
7. Forward the payment voucher to cash and bank section for making payment. In case of payments to be
done through electronic mode by directly crediting the employees’ bank account, forward a list to the
bank mentioning the employees’ bank account number and amount to be transferred.
8. Draw the cheque and get it signed by the Accounts Officer.
9. Forward the cheque to the bank alongwith the details of the employee account for credit in his account.
10. Pass entry in Bank Book (Payment side) and file the payment voucher.
11. In case of cessation of employment due to death, receive separate application from nominee or legal heir
for payment under group insurance scheme and enter the particulars in Group Insurance Settlement
Register.
12. Take up the matter with insurance company and on receipt of cheque from them pass accounting entry
number 3 as shown under Accounting Entries.
1 Final Settlement Register ER.F. 6

2 Journal Voucher CON.F.1
3 Group Insurance Settlement Register ER.F. 7

PwC 16
ACCOUNTING ENTRIES
No.
1 Adjustment of deductions and DR 12.xx.xx Gratuity A/c/ Salary A/c/ Leave
providing for net amount of encashment/other dues (on final
gratuity payable settlement)
CR 68.04.xx Loans and Advances to Staff-Interest
Bearing A/c(Type of loans and advances)
CR 68.04.xx Loans and Advances to Staff-Interest Free

A/c(Type of loans and advance)
CR 02.01.05 Interest on Loans and Advances to Staff
A/c. (Type of loans and advance)
CR 02.06.xx Other Recoveries, if any
CR 54.07.xx Gratuity Payable A/c./ Salary
payable/Leave Encashment Payable/ other
dues payable
2 Payment of final settlement DR 54.07.xx Gratuity Payable A/c./ Salary

payable/Leave Encashment Payable/ other
dues payable

3 Receipt of cheque from DR 67.01.xx Bank A/c.
insurance company
CR 54.07.16 Group Insurance Payable A/c.

PwC 17
3.5. Loans and Advances
HR Section
1. Receive application for loans and advances from the employee with supporting documents, where
relevant.
2. Verify the application to ensure the following:
a. Employee's eligibility to obtain the loan.
b. Employee's eligibility to obtain the amount claimed by him.
3. Prepare a consolidated list of all the applications, where more than one application is received for one
type of loan and advance.
4. Ensure that the total loans and advances as per the lists finalized do not exceed the budgeted provision.
5. Forward the attested applications and consolidated list to the competent authority for sanction.
6. On being sanctioned, send the applications alongwith the consolidated list to the establishment section.
7. On receipt of the sanctioned applications with consolidated list, prepare payment voucher passing
accounting entry number 1.
8. Put up the payment voucher together with requisite documents and consolidated list, if any, for approval
of the Accounts Officer.
9. After approval post the payment detail in the individual employees' folio of Loans and Advances Detail
Sub-ledger
10. Forward the voucher with consolidated list, if any, to Cash and Bank Section.
11. On a monthly basis, post from the pay bill amount of recovery of loans and advances in the employee-
wise sub-ledger.
12. Draw cheque for the individual employees and complete formalities and recordings similar to that
followed in case of other kind of payments. In case the number of employees are more instead of drawing
individual cheques in the name of the employee a consolidated cheque may be drawn favoring the bank
and bank may be advised to credit the employees concerned.
1 Loans and Advances Sub-ledger ER. F. 5
ACCOUNTING ENTRIES
No.
1 Payment of Loans & DR 68.04.xx Loans and Advances to Staff-Interest
Advances to Staff Bearing A/c.(Type of loans and
advance)
DR 68.04.xx Loans and Advances to Staff-Interest

Free A/c (Type of Loans and advance)

PwC 18
3.6. Compensation for death, injury by accident and for specified diseases
HR Section
1. Prepare the workmen settlement claim in case of death, injury or specified diseases.
2. The amount and conditions of payment shall be as per the provisions of the Workmen’s Compensation
Act.
3. Forward the sanction letter to the establishment section.
4. Receive sanction letter from HR Section for payment of Workmen Compensation and prepare Journal
Voucher by passing accounting entry no.1.
5. Draw cheque and make payment in the usual manner.
Nil
ACCOUNTING ENTRIES
Sr Activity Dr/ Code Account Head
No. Cr
1 Payment of Dr 12.06.12 Payment under Workmen’s
Compensation for Compensation Act A/c
Injury/disease
Dr 12.06.13 Interest on Payment under

Workmen’s Compensation Act

PwC 19
Year end entries Accounting Manual
4. Year end entries

4.1. Accounting treatment of year-end activities
Accounts Compilation Section, HO
1. Receive the actuarial valuation report in respect of contribution to be made towards the pension and
gratuity trust for payment of pension, gratuity and leave encashment.
2. Pass necessary accounting entries for the provision and show it in the Balance Sheet and Profit & Loss
Account as a separate item.
NIL
ACCOUNTING ENTRIES
Sr Activity Dr/ Code Account Head
No. Cr
1 Amount determined as Dr 12.02.xx Contribution to Pension and Gratuity
per Actuarial valuation Trust
Liability
Cr 55.01.xx Provision for Employee benefits

(Gratuity, pension, leave)
2 On payment of Dr 55.01.xx Provision for Employee benefits
actuarial valuation (Gratuity, pension, leave)
liability

PwC 20
Employee Benefit Forms Accounting Manual
Appendix A. - Appendices
A.1. Appendix – Employee Benefit Forms

PwC 21
ER.F. 1
TENUGHAT VIDYUT NIGAM LIMITED

(A Govt. of Jharkhand Undertaking)
HO: Hinoo, Ranchi, 834002
PAY BILL
MONTH/YEAR
TTPS/H.O. A/C HEAD :
G R O S S E M OL U M E N T S
S Generat Curren
Gra Conveya Washin
. Na Designat Medial ion Compensa Cash Speci Dust t
de D HR nce Overti g
N me ion Allowa Incentiv tory Allowa al Allowa Charge
Bas Pay A A Allowan me Allowa
. nce e Allowance nce Pay nce Allowa Tot
ic ce nce
Emplo nce al
Pay
yee No.
D E D U C T I O N S Net
Salary
General Recovery Income Life Professional Recovery Of Premium On Voluntary HR Electricity Total
Payable
Provident of GPF Tax Insurance Tax Loans And Group Saving Payment To Recovery Charges
Fund Loan Premium Advances Not Scheme GPF Recovery
Bearing Interest

PwC 22
ER.F.2
PAY BILL ABSTRACT
MONTH/YEAR
TTPS/HO
D E B I T S
Conveyan Generati Washin Current

S. Basi Medial on Compensat Cash Dust
Departme Grad D HR ce Overti Speci g Charge Deb
N c Allowan Incentive ory Allowan Allowan
nts e A A Allowanc me al Pay Allowan Allowan it
. Pay ce Allowance ce ce
e ce ce total
Pay
1.
2.
C R E D I T S
General Recovery Incom Life Professiona Recovery Of Premium On Volunt HR Electri Credit
Provident of GPF e Tax Insurance l Tax Loans And Group Saving ary Recov city Total
Fund Loan Premium Advances Scheme Payme ery Charg
Not Bearing nt To es
Interest GPF Recov
ery
ER.F.3
PwC 23

STATEMENT OF COMPUTATION OF ARREARS OF SALARY
MONTH/YEAR
DEPT./H.O.
SL. NO. EMPLOYEE NAME: DESIGNATION:
EMPLOYEE CODE:
PAYABLE G R O S S E M O L U M E N T S
PAID
MONTH BASIC DEARNESS HOUSE RENT MEDIAL TRANSPORT
GRADE TOTAL
ARREAR PAY ALLOWANCE ALLOWANCE ALLOWANCE ALLOWANCE
PAY
PAYABLE
MONTH 1 PAID
ARREARS
PAYABLE
MONTH 2 PAID
ARREARS
TOTAL ARREARS
D E D U C T I O N S
NET ARREARS PAYABLE
GENERAL PROVIDENT FUND INCOME TAX PROFESSIONAL TAX TOTAL

PwC 24
ER.F. 4

OVER TIME STATEMENT
MONTH/YEAR
EMPLOYEE NAME
EMPLOYEE CODE
DESIGNATION DEPT./H.O.
BASIC PAY________________ DEARNESS ALLOWANCE_______________
Normal duty Extra duty Purpose of

period period Overtime
Date overtime Remarks
duty hours
work
From To From To
Sign. Of Employee Sign. Of Competent Authority
ER.F. 5

PwC 25

LOANS AND ADVANCES SUB-LEDGER
EMPLOYEE NAME : DESIGNATION : YEAR :
EMPLOYEE CODE:
Dr.
Date Particulars Debit Credit Balance / Remarks
Cr.

PwC 26
ER.F.6

FINAL SETTLEMENT REGISTER

Pla La Last Gratu Leave Other Gro Deduction Net
S ce Date Of st DA ity Encash Dues ss s if any Du
Empl
l Of Date Death/ Pa Applic ment Arising Due es
oyee Leng
. Employe Addres Designati Las Of Retirem y able Out Of s
Code th Of Deta A
N e Name s on t Joini ent/ Retrospe
Servi ils mt.
o Pos ng Resignat ctive
. tin ion ce Orders
g
Voucher
Signature Of
Payable To Remarks
AO Da
No.
te

PwC 27
ER.F.07

GROUP INSURANCE SETTLEMENT REGISTER
Application
Employee Name And Code Designation Place Of Last Posting Date Of Joining Date Of Expiry Payable To
No. Date
Receipt
Date Sent To Signature Of Voucher
Amount
Insurance Bill Passing Date Remarks
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Accounting Manual Employee Benefits Accounting Manual-Employee Benefits

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Accounting Manual Employee Benefits Accounting Manual-Employee Benefits

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Accounting

2.1. Pay Bill Preparation 5

3. Other Personnel Payments 13

3.1. Reimbursement of Medical Expenses for Treatment in Hospital 13

4. Year end entries 20

4.1. Accounting treatment of year-end activities 20

A.1. Appendix – Employee Benefit Forms 21

Accounting Manual- Employee Benefits - TVNL

2. Pay and Allowances

Accounting Manual- Employee Benefits - TVNL

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO

1. Pay Bill ER. F.1

Accounting Manual- Employee Benefits - TVNL

CR 54.07.11 Income tax deducted at source

Accounting Manual- Employee Benefits - TVNL

2.2. Disbursement of Pay

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Pay Bill ER.F.1

ACCOUNTING ENTRIES - NIL

Accounting Manual- Employee Benefits - TVNL

2.3. Disbursement of Pension (until pension trust is created)

Cr 54.07.26 Pension Payable

Accounting Manual- Employee Benefits - TVNL

2.4. Preparation of Pay Bill for Arrears of Salary on Pay Revision

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Statement for computation of Arrears Salary ER.F.3

ACCOUNTING ENTRIES- same as in case of payment of regular pay bill

Accounting Manual- Employee Benefits - TVNL

2.5. Payment of GPF and GPF Loan Recovery

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Pay Bill ER.F.1

2 Pay Bill Abstract ER.F. 2

Accounting Manual- Employee Benefits - TVNL

2.6. Payment of Other Deductions

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Pay Bill ER.F.1

2 Pay Bill Abstract ER.F. 2

Accounting Manual- Employee Benefits - TVNL

3. Other Personnel Payments

Accounting Manual- Employee Benefits - TVNL

3.2. Accounting for Reimbursement of Travelling Expenses

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Loans and Advances Sub- Ledger ER. F. 5

Accounting Manual- Employee Benefits - TVNL

3.3. Leave Travel Concession (LTC)

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Journal Voucher CON.F.1

Accounting Manual- Employee Benefits - TVNL

3.4. Settlement on Cessation of Employment

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Final Settlement Register ER.F. 6

Accounting Manual- Employee Benefits - TVNL

CR 68.04.xx Loans and Advances to Staff-Interest Free

2 Payment of final settlement DR 54.07.xx Gratuity Payable A/c./ Salary

CR 67.01.xx Bank A/c.

Accounting Manual- Employee Benefits - TVNL

3.5. Loans and Advances

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

1 Loans and Advances Sub-ledger ER. F. 5

DR 68.04.xx Loans and Advances to Staff-Interest

Accounting Manual- Employee Benefits - TVNL

REGISTERS, DOCUMENTS AND ABSTRACTS FORM NO.

Dr 12.06.13 Interest on Payment under