Work Accounts 

Running Account Bill (form 26)

This form has 3 parts

Part I Account of Work executed

Part II Account of Secured Advance (Form 26A)

Part III Memorandum of Payments

When a final payment is made on a running account, the ​payee (​i.e. contractor/supplier​)
if he is able to write, should add in his own hand writing that the payment is “​in full and
final settlement of all demands​”

​Part I Account of Work Executed

payments on the basis of actual

Item of
Work
Unit Rate Quantities measurement
up-to date up-to date since previous bill

Total value of work done ​(A)

Deduct value of work shown on previous bill
Net value of work since previous bill ​(F)
( figures in words)
 Part II Secured Advance (Form 26-A)

Utilised
Outstanding Description
since Quantity Full Reduced upto date
in previous of Unit
previous outstanding Rate Rate advance
bill Material
Bill

Total amount of S.A. outstanding as per this account ​(C)

Total amount of S.A. outstanding as per previous bill
Net amount since previous bill ​(E)

​Part III Memorandum of Payments

1. Total value of work actually measured ​(A)

2. Total up-to-date Advance Payments ​(B)
(a) As per previous bill ……...
(b) Since previous bill ……….. ​(D)
3. Total up-to date Secured Advance ​(C)
4. Total Items (1+2+3)
5. Deduct amount with-held
(a) From previous bill ……….
(b) From this bill (Security of prev bill) ……..
6. Balance ​(K)
7. Total payment already made as per entry (K) of last bill
8. Payments now to be made as below
(a) By recoveries creditable to this work ……...
G = 5(b) + 8(a)
(b) By recoveries creditable to other works ……...
(c) Cheque ……..
H = 8(b) + 8(c)
Some important points​ :

● Income Tax = 2% of D+E+F

● Pay order ​is for the​ amount of the cheque​ issued to the contractor
● Contractor’s acknowledgement​ is for the​ gross amount i.e. figures of line 8

Following Checks are to be made​ :-

● H-F=D+E-G
● Payments now to be made (​Line 8​) i.e. 8(a) + 8(b) + 8(c) = ​D + E + F - 5(b)
● Line 7 figure K of last bill = ( A + B + C - line 5 ) of previous bill

Line 8(a) Recoveries creditable to the same work

● Cost of material issued to contractor from PWD stores

● Fine for defective work

● Cost of removing defects from work on behalf of contractor i.e. recovery of

amount spent at contractor’s risk & cost

Line 8(b) Recoveries creditable to other works or Head of Accounts

● Security deposit

● Income Tax(TDS)

● Cost of material issued to contractor for other works

● Hire Charges of Tools & Plants lent by PWD

● Supervision charges

● Fine for delay in work

● Penalty for not returning unused material

● Recovery for court or other division/dept & Recovery of Mobilisation Advance