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Contractor's Ledger 1 PDF
Contractor's Ledger 1 PDF
Contractor’s Ledger
● It records the amounts due to(or recoverable from) a contractor from time to time
and the amounts actually paid to him(or recovered from him)
● It is maintained in the Division in Form 43
● Only one account is kept in respect of one contractor irrespective of the number
of contracts undertaken by him
● A personal account must be opened in the ledger for a contractor,whether or not
a formal contract has been entered into with him, unless the work or supply
entrusted to him is unimportant and no payment is made except on a First &
Final Bill
● If only materials are issued to contractor or any payments are made on his
behalf, ledger account must be opened
Column 4 -- “Advance Payment” -- corresponds to figure “D” in the Running A/c bill
Column 5 -- “Secured Advance” -- corresponds to figure “E” in the Running A/c bill
{ Net advance paid “+” and Amount recovered “-” }
(ii) In case of First & Final bill -- no entry should be made, unless a recovery is made
from the contractor on any account
(iii) In other cases : The amount paid or recovered from the contractor should be
entered in terms of their value.
(i) value of material { issued(+)/ recovered(-) }
(ii) Fine for bad work { when levied(+)/ when recovered(-) }
(iii) amount withheld (-) & amount released(+)
(iv) expenditure incurred at contractor’s cost(+) , when recovered(-)
Column 8 -- “Debit’’
● In the case of Running A/c bill, figure “H” should be posted i.e. amount of cheque
plus recoveries creditable to other works/head of accounts { H = 8(b) + 8(c) }
● In other cases, the total amount paid or chargeable is entered
Column 9 -- “Credit”
● In the case of Running A/c bill, figure “F” should be posted
● In other cases, the amount payable to the contractor is posted
Note: In the token of check, the last entry in column 10 should be initialled(and dated)
by the Divisional Accountant
Central Public Works Account Code
Note :
● Ledger account should be closed and balanced monthly
● After closing, the personal account should be detailed so as to show the amounts
outstanding in the 3 suspense accounts i.e.
Advance payment , Secured Advance and Other Transactions
● Divisional Accountant should ensure correctness of the Contractor’s Ledger
Important points :-
(i) Column 8 - Column 9 = Column 4 + Column 5 + Column 6
i.e. H-F=D+E-G
(iI) In case a contractor delays receiving the payment of his final bill for more than
1 month after the bill has been passed, the amount due to him may be credited
to Public Works Deposits.
(iii) In case a contractor has been overpaid, then the net amount recoverable may
be debited to Miscellaneous Works Advances
Form 43-A :
Another ledger is maintained for the Accounts relating to issue of material direct to work
when contract is of labour or the work is to be done departmentally and also for land
acquisition. It has 13 columns