RESERVE BANK SUSPENSE AND RESERVE BANK DEPOSIT
Most important question asked several times in appendix 3A examination (in 1986, 1988, 1990 & 1997 (without Books) and asked as Short Notes question.
The below given material is useful for question of Differences between as well as Short notes.
Reserve Bank Suspense (RBS) :
Ø It is a suspense head operated for settling INWARD transactions from other Accounts Officers ( Except for Cheques & Bills and Remittance into Bank)
Ø As and when, the ADVICES received, the RBS A/c is debited ( in case of receipts) or credited ( in case of expenditure).
Ø on receiving "CLEARANCE MEMO" from RBI-Reserve Bank of India, the a/c in RBS is cleared by contra Debit or credit to Reserve Bank Deposit (RBD).
Ø All balances under RBS should be NIL at the end of financial year i.e., 31st March. If any balance is left over, the same should be transferred to MAR (if debit balance) or to Deposit Misc (if credit balance) as the case may be.
example: Receiving Debit from other Accounts Officer.
1) On receipt of ADVICE ( Debit ) from the other Accounts Officer
Concerned Revenue Demand Dr. xxxx
To Reserve Bank Suspense (RBS) Cr xxxx
( Booking of expenditure to respective Demand and simultaneously placed under RBS for clearing due from RBI)
2) On receipt of CLEARANCE MEMO from RBI-Reserve Bank of India
Reserve Bank Suspense (RBS) Dr xxxx
To Reserve Bank Deposit (RBD) Cr xxxx
(Clearing balance in RBS duly debited and credited to Railway Central Fund i.e., RBD- Reserve Bank Deposit)
RESERVE BANK DEPOSIT (RBD)
v The original name is "Deposit with Reserve Bank" Major Head 8675.
v It is a Railway Central Fund in the Books of Reserve Bank of India - CAS- Central Accounts Section at Nagpur.
v It is operated to record, the "Clearance Memo" which are received from RBI in clearance of transactions intimated either by :-
a) FA&CAO's for the transactions originating in Railway Books and are to be settled through RBI.
b) In clearance of transactions which are intimated by other Accounts Officers to the RBI.
c) The clearances of RIB-Remittances Into Bank and C&B- Cheques & Bills( through PSB suspense - Public Sector Bank Suspense)
v The Balance under RBD is closed to "GOVERNMENT" at the end of the year i.e., 31st March.
v RBD is reconciled with the General Books.
RESERVE BANK SUSPENSE - RBS
RESERVE BANK DEPOSIT - RBD
1. Operated only for INWARD transactions
1. Operated for both INWARD & OUTWARD transactions
2. Operated for settling Inward transactions from other Accounts Office i.e., Defence, P&T etc
2. Operated for adjustment of transactions i.e., clearance of C&B, RIB and transactions settled with Non-Rly depts as well as outward transactions raised by FA&CAOs against other depts.
3. Nature of the Head is "SUSPENSE" in the books of Railways
3. Nature of the Head is FINAL i.e., "Railway Central Fund" in the books of RBI/CAS/Nagpur.
4. Until the transaction adjusted, this Head is bear the transaction. Once the transaction is adjusted to RBD, the balance under this Head is cleared.
4. With the operation of this Head, the adjustment of transaction is over, thereby effecting the balance of Railway Deposit in RBI/CAS/Nagpur.
5. Clearance: All the items under this head should be cleared at the end of the year. If any balance is left over, the same is transferred to MAR (debit balance) or Deposit Misc (Credit balance) as the case may be.
5. Clearance: The balance under this Head should be transferred to GOVERNMENT at the end of the year i.e., March, 31st.