Central Public Works Account Code

​ 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

Net Transactions of Suspense Gross Total

Head Transactions Value
of Remarks
Advance Secured Name of Work/
Payment Advance OT Work Debit Credit Supply
1,2,3 4 (D) 5 (E) 6 (G) 7 8 (H) 9 (F) 10 (A) 11

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 “-” }

Column 6 -- “Other Transactions” ​-- posting in this column is as given below

(i) In case of Running Account Bill ---figure “​G​” should be posted {i.e. 5(b) + 8(a)}
 Central Public Works Account Code

(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

Column 10 --”Total value of work/supply” ​-- corresponds to figure “​A​” in the

contractor’s bill

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

Transactions that does not form part of contractor ledger

● If a contractor’s bill has been prepared and passed for payment but has not
yet been paid
● Fine for delay
● Security deposit submitted by contractors
● Hire charges of T&P
● Recoveries pertaining to other divisions
● First & Final bill, unless a recovery is made from contractor
● Material issued to contractor where the contract is for labour only
 Central Public Works Account Code

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