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HISTORY OF ACCOUNTING AND ACCOUNTING STANDARDS

There are evidences to conclude that art practice of accounting existed even in Vedic times. There are references to Kraya (sale), Vanij (merchant), Sulka (price) in Rigveda. Kautilya's Arthashastra contains details on business of keeping up accounts in the office of accountants. It provides details of matters which should be recorded, registers to be maintained, system of examination of accounts and details of punishments for default.


CONSTITUTION OF THE CADRE OF DIVISIONAL ACCOUNTANTS

The Divisional Accountants are constituted in a separate cadre (vide Para 314 of chapter VII of C & AG's manual of standing order Administrative Vol.I) for fulfillment of duty entrusted to the Comptroller & Auditor General of India under Article 149 of the Constitution of India, in the matter of compilation and audit of Public Works Accounts. This cadre is intended to provide one trained Accountant for each Public Works Division under Para 234 of Comptroller & Auditor General's Manual of standing Orders. The cadre of Divisional Accountant is under the administration control of Accountant General of the state concerned who is given power to create or abolish permanent or temporary post of Divisional Accountant under Para 235 of Manual of Standing order of C & AG. The state Government concerned bears fully the cost on the establishment of Divisional Accountants including its salary, allowances, LTC, Travelling allowances, medical reimbursement & children education allowances etc.


ORIGIN, EVOLUTION OF THE CADRE AND ITS HISTORY

Origin - The present cadre of Divisional Accountants originated over about more than 100 years ago with the creation of the separate Department of Public Works in February 1855, to look after Civil and Military Buildings, Irrigation, Communication and Railway matters. From the very inception, the importance of maintenance of accounts in this Department was kept in view and the respective Chief Engineers of the then Provinces were made responsible for proper compilation and control of the expenditure incurred by the disbursing officers under them. A central office of Accounts under the Chief Engineer was set up in each province to which the disbursing officers were required to submit their detailed and original accounts along with the supporting vouchers and a monthly internal audit of expenditure and internal pre-audit of salary bills were also introduced. 


Evolution - On a review of the working of these controlling officers of accounts by Major Strachy towards the end of 1856, who reported that Chief Engineers were generally unable to manage the accounts matter and after further examination of this report by a committee appointed by the Government of India in June 1858, a separate Department for Public Works Accounts and Audit under a Chief Inspecting &  Controllers under him was formed in 1880, to take over the responsibility in the matter of accounts and audit attached to the Secretary of the Public Works Department with Controllers/Deputy Controllers under him was formed in 1880, to take over the responsibility in the matter of accounts and audit from Chief Engineers (Vide Govt. of India Public Works Departments Notification No. 278, dated 13.11.1860).

Simultaneously, an establishment of Principal Subordinate Accountants for accounts of Public Work Office was created. This marks the beginning of separate accounts cadre for the Public Works Departments under the administrative control of Central Government.