APPORTIONMENT OF ASSETS AND LIABILITIESState · Bihar

Section 57 of The Bihar Reorganisation Act, 2000 in hindi

Items in suspense.

If any item in suspense is ultimately found to affect an asset or liability of the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision.

Summary

This provision ensures that any money or property currently held in a temporary accounting category is eventually split correctly.
It applies to items in suspense, which are financial entries that have not yet been assigned to a permanent account.
Once the true nature of the item is identified as an asset or a liability, it follows the specific rules set out earlier in this part of the law.
It prevents financial items from being lost or ignored just because their exact category was not clear on the day the states were divided.

Practical examples

1An accountant in Patna has a record of 50,000 rupees sitting in a temporary suspense account since October 2000. In 2001, he realizes this was actually a refund for a tractor purchased in Ranchi. Under Section 57 of the Bihar Reorganisation Act, 2000, this money is treated as an asset found in the transferred territory and goes to Jharkhand.

2A bill for 1 lakh rupees for office supplies is stuck in a suspense account because the receipt was missing. When the receipt is found in 2002, it shows the supplies were for a Bihar government office in Gaya. According to Section 57, this liability is handled using the standard rules for goods and land in Bihar.

FAQ

1. What does Section 57 of the Bihar Reorganisation Act, 2000 say about items in suspense?

It states that once a temporary financial item is identified as an asset or liability, it must be handled according to the specific rules of the Bihar Reorganisation Act, 2000 that apply to that type of item.

2. Does Section 57 of the Bihar Reorganisation Act, 2000 create new rules for splitting money?

No, Section 57 of the Bihar Reorganisation Act, 2000 simply points back to the existing rules in the Act once the identity of a mysterious financial item is confirmed.

3. Who decides which rule applies to a suspense item under the Bihar Reorganisation Act, 2000?

The nature of the item itself determines the rule, so if it turns out to be a land related asset, the land rules in the Bihar Reorganisation Act, 2000 apply.

Test yourself

1.Under Section 57 of the Bihar Reorganisation Act, 2000, how should an item in suspense be treated once its true nature is found?

2.Which part of the Bihar Reorganisation Act, 2000 does Section 57 refer to for guidance on handling identified items?

3.According to Section 57 of the Bihar Reorganisation Act, 2000, what happens if a suspense item is found to be an asset?

4.If a liability is identified from a suspense account under Section 57 of the Bihar Reorganisation Act, 2000, who is responsible for it?

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