Govt approves Accrual Based Double Entry Accounting System

JAMMU, JUNE 17: The Administrative Council (AC), which met here under the chairmanship of Lieutenant Governor, G C Murmu, accorded sanction to adoption of the Jammu and Kashmir Municipal Accounting and Budgeting Rules, 2020, to facilitate implementation of Accrual Based Double Entry Accounting System (ABDEAS) in Urban Local Bodies.
The adoption of the manual by the Municipal bodies will guide them in proper implementation of provisions of Municipal laws, specifically related to accounts and audit. This will bring more transparency in maintaining accounts, enforcing discipline with defined timelines for completion of accounts, audit, filing of response to audit paras, along with preparation of budget and its execution.
The new rules will also strengthen internal controls through segregation of duties, specific controls in handling and accounting of cash, security, stores and general maintenance by delineating roles and responsibilities for various accounting models.
Moreover, the manual will introduce uniform chart of accounts for all municipal bodies and will provide guidelines for preparation of opening balance sheet and valuation of municipal properties. It will also help in publishing the annual reports within completion of the financial year.
The procedures enshrined in the manual will ensure incorporation of formats of database on finance prescribed by C&AG for effective monitoring of ULBs. This will also ensure provisioning against receivables based on the principles laid down by National Municipal Accounts Manual.