Central Public Works Account Code
Stores
Stores in PWD comprises mainly items like Bitumen, cement,steel and other material
used for construction/repair of roads, bridges and buildings
The Divisional Officer is responsible for general administration of stores i.e.
● acquisition of stores
● custody and distribution according to the requirements of works
● their disposal
Fictitious stock adjustments are strictly prohibited, for e.g.
(1) debiting to a work,the cost of materials not required/ in excess of actual
requirements
(2) the debiting to a particular work for which funds are available of the value of
materials intended to be used on another work for which no allotment has been
sanctioned,
(3) the writing back of the value of materials used on a work to avoid excess outlay over
appropriation
Any breach of this rule of store administration constitute a serious irregularity which will
be put up to the notice of appropriate authority by Divisional Accountant along with an
intimation to the CCA
The accounts of stores are based on the fundamental principle that the cost of their
acquisition should be debited to the particular work for which they are required, when
the work is done departmentally by the contractors whose agreement is for labour only.
In other cases, it should be kept in a suspense account pending clearance, as the
materials are actually issued, by debit to specific heads of account or works.
Central Public Works Account Code
The four classes of stores of CPWD fall into 2 categories as shown below:-
(1) Stores debited to Suspense (2) Stores debited to final heads
Stock Tools and Plant
Road Metal
Materials charged to works
Stock :-
● The stock of a division is kept in a single godown/yard in the charge of a storekeeper
or other officer, or each SDO may have a separate stock in his charge
● In order to ensure accuracy of posting of all transactions and facilitate the preparation
and valuation of indents, a list of materials in stock, showing their correct description
and identifying numbers (commonly known as Priced Vocabulary of Stores), should
be evolved on the basis of an up-to-date classification of stores, which should be
uniformly adopted throughout the Department
● Materials may be received on stock from the following sources:-
(a) Suppliers in India or Abroad.
(b) Other sub-Divisions, Divisions or departments
(c) Manufacture
(d) Works, buildings
● Stock materials are received by the store keeper or the sectional officer concerned
only. This authority is given by the Divisional Officer or the Sub-divisional Officer.
Central Public Works Account Code
● All materials received are examined,measured, counted or weighted before delivery is
taken
Goods Received Sheet, Form 8-A : record of the detailed count or measurement or
weighment
Prepared in triplicate
One copy retained by store-keeper
Two copies sent to sub-division (1 copy sent to Division and 1 copy to supplier)
Register of Goods received sheet Form 12-A maintained in Division
● Materials may be issued from stock for the following purposes:-
(a) for use on works either by issue to contractors or direct to works
(b) for despatch to other sub-divisions, divisions or departments
(c) for sale to contractors, employees, other persons or local bodies
Issue rate = Purchase Price + Carriage & other incidental charges + Storage charges
● On the basis of no ultimate profit or loss in the stock accounts
● Issue Rate should be worked out to the nearest rupee,
● Issue rates of cement, steel or any other item in the contracts, should not be less
than the market rates
● 10% Supervision Charges should be realised in addition to the value of stock
including storage charges.
If the Issue Rate of an article of stock is appreciably less than the market rate
(a) Issues to contractors other than those on finished rate -- at market rates,
(b) Issues to other divisions and departments --- at a rate higher than the Issue Rate
Central Public Works Account Code
● Materials are issued only on receipt of an indent (Form 7) signed by the Divisional
or the Sub-divisional officer.
Indent is prepared in quintuplicate i.e. 5 copies
Bin Card, Form 8 : chronological record of the total quantity received, issued and running
balance of each article of stock
i.e. Quantity Account of Stock maintained in Sub-Division
Register of Bin-cards in Form 12-B
Priced Stores Ledger, Form 12 : for proper monitoring of quantities and value of
stores, Priced Stores Ledger is maintained in division. All the goods received are
entered with their value even if their payment has not been made, and all the goods
issued with their value even if their cost has not yet been recovered
-----Closed at the end of each month
i.e. Value account of stock maintained in Division
● A Sale Account in Form 19 is prepared by Sub-division in support of every
sale for Divisional Officer to effect recovery
Summary of Stock Receipts Form 9 is posted in the Divisional Office daily to indicate
the value of Stores received as per each Goods Received Sheet
Summary of Indents Form 10 is posted daily from indents
Golden Rule:
Debit - what comes in
Credit - what goes out
Central Public Works Account Code
The items for which payment has not yet been made or recoveries have not yet been
made will cause a difference in the Cash A/c and Stock A/c. To reconcile the two,
following procedure is followed-
● The value of goods received but not paid for is debited to “Stock” by credit to
“Material Purchases Settlement Suspense” under the Major Head “8658 –
Suspense Accounts”
● The value of goods issued for which recovery has not yet been made is credited
to “Stock” by debit to “Miscellaneous Public Works Advances” under the
Minor head 799- Suspense below the Major Head “2059 Public Works”
Stock Taking : Physical verification of all Stores shall be done at least once every
year
When materials found surplus (i.e. in excess of the balance in the account) then it is
treated as a “Receipt of Stores”. The value of such stores is credited to Revenue by
debit to “Stock”
In case of shortage, the value is removed from stock account by credit to “Stock” and
debit to “Miscellaneous Public Works Advances”
Rectification of Accounts : Corrections of errors found after the accounts of the
month are closed, should, when permissible, be made
(i) by making entries of values (without quantities) in the Stock accounts of the current
month when no change is to be made in the head of account affected
(ii) by preparing transfer entries in following cases-
● When quantities are found surplus or short
● When issue Rates have to be raised or lowered
● When stores of any description become unserviceable and are removed
from stock( adjustment is made after obtaining orders of competent
authority in Survey Report,Form 18)
Central Public Works Account Code
No correction will be made in the accounts in respect of stores declared to be in excess
of requirements
