GOVERNMENT OF PAKISTAN
PAKISTAN MILITARY ACCOUNTS
DEPARTMENT
MILITARY ACCOUNTS CODE
REVISED EDITION 2008
RECORD OF AMENDMENTS
Amdt. By I Amdt. By I
No. and whom n No. and whom n
D i i D i i
a n t a n t
t s i t s i
e e a e e a
r l r l
t s t s
e e
d w d w
i i
t t
h h
d d
a a
t t
e e
ii
iii
PREFACE
The provisional issue of Military Accounts Code-1942
Reprint was revised in 1950 as a result of the constitutional
changes brought about by the partition of the Indo Pakistan Sub
Continent. Many changes have caused the present revision to suit
the requirements of the arrangement obtaining in Pakistan.
Part-1 Describe the accounting functions of the
Controllers of Accounts in relation to the
Defence Services Accounts, the general
principles and Method of rules governing
classification in Govt. Accounts of the Defence
Services receipts and charges and the directions
regarding inter-departmental transfers. The rules
made by the President regulating adjustment
between Governments, of certain important
categories of charges and receipts which have
been accepted by all Governments are given in
Appendix II.
Part-II. Deals with the rules of procedure applicable to
and the detailed instructions relating to the
treatment of Exchange Accounts including the
Accounting of Remittances/adjustment of
transactions Abroad.
Part-III. Described the process employed in the several
Defence Account Officers preliminary to the
mechanical preparation, on their behalf, of the
periodical classified accounts, by the Data
Management Section & Computer Cell, and the
checks exercisable by the Defence Account
Offices on the accuracy of the printed
compilations.
Part-IV. Contains certain provisions of a miscellaneous
character relating to the Defence Accounts which
could not be accommodated under any of the
iv
specific headings of the chapters comprising the
foregoing three parts.
2. The rules relating to the pro-formae accounts of the
Pakistan Army Ordnance and Clothing Factories and Cost
Accounting Pakistan Naval Dockyard-which do not strictly fall
within the scope of the regular accounts of the Defence Services
have been relegated to Appendix IV and Appendix V respectively.
3. Supplementary instructions in regard to the preparation of
the punching Media have also been incorporated in the shape of an
Appendix.
4. A thorough revision has been made of the plan in the old
Military Account Code, the various parts and chapters whereof
have been systematized and re-arranged in order that the subjects
treated therein may be developed more logically.
5. In bringing out this volume, the simplification and
clarification of the accounting processes and instructions have
prominently kept in view. The Controllers shall, do well to
appreciate the propriety of citing reference to the provisions in the
appropriate Civil books where such provisions exist in these books,
instead b of the relevant paras, in the Military Account Code, in
the course of their correspondence with authorities outside the
Defence Department.
6. Amendments to this Code can be made only by the Military
Accountant General with the concurrence, where necessary of the
Ministry of Finance (Military) or the Auditor General, as the case
may require. The Military Accountant General will welcome any
suggestions for amendment or improvement that may be made for
his consideration by the Defence Account Officers.
SALAHUDDIN
Military Accountant General
RAWALPINDI July, 2006
v
CONTENTS
Paras Pages
Abbreviations vii
Definitions ix
GENERAL PRINCIPLES AND METHOD OF
Part I.
ACCOUNTS
Functions of Controllers in 1-3
Chapter 1 1 to 14
relation to Defence Accounts.
General outlines of the system 4-9
Chapter 2 15 to 24
of Accounts
General Principles and Method 10-9
Chapter 3 25 to 60
of Accounts
Chapter 4 Deposits 61 to 84 30-35
Chapter 5 Advances 85 to 115 36-45
Chapter 6 Transfer Entries 116 to 126 46-49
Exhibition of recoveries of 50-52
Chapter 7 expenditure in Government 127 to 133
Accounts
Exhibition of Losses in 53-54
Chapter 8 134 to 142
Government Accounts
Chapter 9 Inter-Departmental Transfer 143 to 160 55-59
PART II. – EXCHANGE ACCOUNTS
General Rules and procedure 61-71
Chapter 10 applicable to Exchange 161 to 191
Accounts
Adjustment with Foreign 72-74
Chapter 11 Governments and States 192 to 206
acceded to Pakistan
Form and treatment of Civil Ex- 75-92
Chapter 12 207 to 261
change Accounts
Special Procedure applicable to 93-99
Chapter 13 262 to 280
Military Exchange Accounts
vi
Accounting of 100-101
Chapter 14 Remittances/Adjustment of 281 to 289
Defence Transactions Abroad
PART III. COMPILATION AND CONSOLIDATION OF
ACCOUNTS
Compilation and consolidation 104-112
Chapter 15 316 to 340
of accounts
Check of classification and 113-115
Chapter 16 341 to 350
Review of Compilations
Chapter 17 Military Ledger 351 to 360 116-118
Chapter 18 Verification of balances 361 to 380 119-124
PART IV. MISCELLANEOUS
Chapter 19 Budget Estimates 381 to 390 126-132
Control of expenditure and re- 133-138
Chapter 20 391 to 409
appropriation
Chapter 21 Miscellaneous provisions 410 to 430 139-145
Appendix 00 147
Index 00 240
Concordance 00 262
vii
LIST OF APPENDICES
PAGES
The more important points to be seen
during the course of review of
Appendix I 147
compilations for the closing months of
the year
Principles and Rules regulating the
Appendix II distribution of certain charges and 150
receipts between Governments
Detailed instructions for the preparation
Appendix III 164
of Punching Media
Instructions for the maintenance of
Appendix IV Proformae Accounts of Army Ordnance 188
and Clothing
Instructions relating to Cost Accounting
Appendix V 195
– Pakistan Naval Dockyard.
Allocation between Pakistan and India
Appendix VI of the initial liability in respect of 217
Central Pensions
London Accounts – List of Departments
H.M’S, Government classes of
Appendix VII 219
payments to be made in Pakistan on
their behalf.
Appendix Table of payment of Loan of Re. 1 by
221
VIII way of annuity in 15 years.
Procedure regarding maintenance of
Accounts on Commercial basis
Appendix IX pharmaceutical Manufacturing section 223
at Armed Forces, medical Store Depot,
Nowshera
viii
ABBREVIATIONS
A.F. Air Force
A.G. Accountant General
C.C.M.A. Chief Controller of Military Accounts (General
(GHQ) Headquarters)
C.A.A.F Controller of Accounts, Air Force
C.C.O Central Compilation Office
C.L.A. (DS) Controller of Local Audit (Defence Services)
C.M.A Controller of Military Accounts
Controller of Military Accounts (Defence
C.M.A. (DP)
Purchase)
Controller of Military Accounts Inter Services
C.M.A. ISOs
Organizations
C.M.A.(O) Controller of Military Accounts (Officers)
“DM” Sec. Data Management Section
C.M.P. Controller of Military Pensions
C.N.A. Controller of Naval Accounts
C.O.F.A. Controller of Ordnance Factory Accounts
I. D. Sch. Inter-departmental Schedules
M.A.G. Military Accountant General
M.E.S Military Engineering Services
M.R.O. Military Receivable Order
P.A.F. Pakistan Army Form
P.M. Punching Medium/Media
P. N. Pakistan Navy
R. D. & R. Revenue, Debt & Remittance
ix
R.T.R. Remittance Transfer Receipt
T. E. Transfer Entry
U.A. Unit Accountant
x
DEFINITIONS
In this Code, unless repugnant to the context, the following
terms and expressions shall have the meanings respectively
assigned to them hereunder:-
“Account” in the financial sense, means a statement of
facts relating to money, or things having money value.
“Accountant General” means the head of an office of
accounts sub-ordinate to the Auditor General of Pakistan whether
know as Accountant General, Comptroller of by other designation.
“Auditor General” means the Auditor General of Pakistan.
“Civil Account Officer” Means an Account officer
subordinate to the Auditor General and unless otherwise specified
includes Accountant General Posts and Telegraphs and Railway
Accounts Officers.
“Comptroller” – See “Accountant General”.
“Controller” See “Defence Accounts Officer”.
“Defence Accountant Officer” means head of an office of
Accounts subordinate to the Military Accountant General, whether
known as Controller of Military Accounts, Controller of Naval
Accounts, Controller of Accounts Air Force, Controller of
Ordnance Factory Accounts, Controller of Local Audit (DS),
Controller Military Accounts ISOs, CMA (Defence Purchase) or
by any other designation.
“Financial Year” of the Government of Pakistan runs from
the first of July to the 30th of June, and the accounts of a year
embrace the transactions pertaining to a financial year.
“ Military” Includes Military Engineering Services, Air
Force and Navy, unless the context otherwise implies.
xi
“Public Account” means the consolidated fund into which
moneys received on account of the revenues of the Government
are paid or credited and from which all disbursements of or on
behalf of the Government are met.
“Asstt. Accounts Officer” means an account officer who performs
accounting/audit functions on behalf of another Account/Audit
Officer.
“The Bank” means the State Bank of Pakistan or any of its offices
or branches and includes any other Bank in Pakistan for time being
acting as the agent of the State Bank of Pakistan (in accordance
with the State Bank of Pakistan Act).
“Transactions” mean the facts that are incorporated in accounting
records.
“Treasury” includes sub-treasury.
