Rules 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rules 10 to 14 of the Madhya Pradesh Public Trusts Rules, 1962 carry out sections 15 to 17 of the Madhya Pradesh Public Trusts Act, 1951 in Madhya Pradesh. They list the books of accounts, fix the time for audit, give the Registrar powers to help the auditor, add points to the auditor's report, prescribe the balance sheet and income and expenditure account forms, and set the special audit fee.
This article explains rules 10 to 14 of the Madhya Pradesh Public Trusts Rules, 1962 as amended up to the date of the English text consulted on 3 October 2026 (published without amendment footnotes; bracketed words show that the State has amended it). Check the current text with the State's Devasthan Department or Registrar of Public Trusts before relying on it.
Rule 10: the working trustee or manager keeps six books (journal, ledger, stock book and three registers), gets a receipt for every item above Rs. 5, and the Registrar may dispense with books for a trust whose property is below Rs. 3,000. Rule 11: audit within six months of balancing; the auditor sends the balance sheet and account to the Registrar within a fortnight; a trust with gross income of Rs. 1,000 or less may use Forms IX and X. Rule 12: the Registrar's powers to help the auditor. Rule 13: twelve points in the report; balance sheet in Form XI, account in Form XII. Rule 14: the special audit fee is not above two and a half per centum of gross annual income and not below Rs. 50, as printed.
Rule 10: maintenance of accounts
Rule 10(1). Every working trustee or manager maintains these books of accounts:
| Clause | Book |
|---|---|
| (a) | A journal of all receipts and expenditure, maintained daily, weekly or fortnightly, with the balance struck at the end of the period |
| (b) | A ledger classifying receipts and expenditure under heads the Registrar directs |
| (c) | A stock book showing a list of all movable properties owned and purchased, with the value and the date of purchase |
| (d) | A register of immovable property held, with location, land revenue or rent and other taxes, encumbrances and references to documents |
| (e) | A register of securities held and actionable claims due to the trust |
| (f) | A register showing claims to receive benefits out of movable or immovable property |
Proviso. The Registrar may, for trusts whose property is worth less than Rs. 3,000, dispense with the maintenance of any of these books. The figure is as printed.
Rule 10(2). The working trustee or manager obtains a receipt for every item of expenditure exceeding Rs. 5 at one transaction, preserves the receipts until the Registrar accepts the annual audit report, and keeps counterfoils of receipts for income from the trust's property. No receipt need be issued for casual income, but the journal records the day's total.
Rule 10(3). The Registrar may direct additional books or dispense with books "in the light of the peculiar nature of each public trust". Section 15 of the Act requires regular accounts of all movable and immovable property; see sections 15 to 17. Our books of accounts compliance service can set the books up.
Rule 11: audit of accounts
Rule 11(1). The manager or working trustee "shall get the account audited annually within six months of the date of balancing the accounts under sub-section (1) of Section 16". Section 16(1) of the Act says accounts are balanced on 31 March or another day the Registrar fixes. This article does not compute a calendar date.
Rule 11(2). The auditor audits in the manner in rule 13 and forwards a copy of the balance sheet and the income and expenditure account with his report to the Registrar "within a fortnight of the audit or within such further period of time as may be extended by the Registrar from time to time".
Rule 11(3) (in square brackets in the published copy, which shows an amendment). For a trust whose gross income is Rs. 1,000 or less, the manager or working trustee may prepare and furnish full and true statements of receipts and disbursements and of income and expenditure in Forms IX and X. The Registrar then gets them audited, as far as practicable in the manner of rule 13, by a person authorised under section 16(2), and recovers an audit fee of Rs. 5 from the trustee. The amounts are as printed.
Form IX is headed "Statement of the Receipt and Disbursement" for the year, with receipts and disbursements side by side and opening and closing balances. Form X is the "Statement of Income and Expenditure" for the year. Both end with the signature of the manager or working trustee.
Rule 12: powers for audit
For audit under section 16(2) or 16(4), the Registrar may, of his own motion or at the auditor's request, require (a) production of any book, deed, account, voucher or other record; (b) personal appearance before the auditor; (c) necessary information; and (d) production of movable property for inspection. Rule 12(2): every such person "shall comply with the same". Breach of rule 12(2) is punishable under rule 18 with a fine which may extend to two hundred rupees, as printed.
Rule 13: manner of audit and the forms
Rule 13(1). The auditor's report shall, in addition to what section 17(2) of the Act requires, contain twelve particulars, lettered (a) to (l):
- whether accounts are maintained regularly and in accordance with the Act and the rules;
- whether receipts and disbursements are properly and correctly shown;
- whether the cash balance and vouchers in the custody of the manager or working trustee agreed with the accounts on the audit date;
- whether all books, deeds, accounts, vouchers or other documents required were produced;
- whether an inventory of movables, certified by the trustee, has been maintained;
- whether the manager, working trustee or any other person required by the auditor appeared and furnished the information;
- whether any property or funds were applied for another object or purpose;
- the amounts outstanding for more than one year and the amounts written off;
- whether tenders were invited for repairs or construction involving expenditure exceeding Rs. 5,000;
- whether any money has been invested contrary to section 13;
- alienations of immovable property contrary to section 14 that came to the auditor's notice; and
- any special matter the auditor thinks fit to bring to the Registrar's notice.
The Rs. 5,000 figure is as printed.
Rule 13(2). The balance sheet and the income and expenditure account that the auditor prepares and forwards under section 17(1) "shall be in Forms XI and XII, respectively". Form XI is headed "Balance Sheet as at", with funds and liabilities on one side and assets on the other. Form XII is headed "Income and Expenditure Account for the year ending", with expenditure (including expenditure on religious, educational, medical relief, relief of poverty and other charitable objects) and income. Each carries the signature of the manager or working trustee and a space for the chartered accountants as auditors.
Rule 14: fee for special audit
Rule 14(1). "The fee for special audit under sub-section (4) of Section 16 shall be fixed by the Registrar according to the circumstances of each case." Proviso: it shall not "exceed two and a half per centum of the gross annual income of the public trust or be less than Rs. 50". Explanation: gross annual income includes gross income from all sources in a year, excluding donations or offerings made with a specific direction that they form part of the corpus.
Rule 14(2). Before a special audit is directed, the Registrar may require the trustee or the person moving for it to deposit an amount sufficient, in his opinion, for the cost.
Rule 14(3). After the special audit, the Registrar may direct the whole or part of the costs to be met from the funds and property of the trust or borne by the person who moved for the audit.
Worked example
An invented trust, Shri Katni Hanuman Mandir Trust, keeps the six books and obtains receipts for each payment above Rs. 5. Its auditor, Ms Pooja Agrawal, audits within six months, covers the twelve points in rule 13, and sends the balance sheet in Form XI and the account in Form XII to the Registrar within a fortnight. The Registrar later orders a special audit.
Practical points
- Keep all six books, and obtain receipts for payments above the printed Rs. 5.
- Plan the audit so it is completed within six months of balancing.
Need help with accounts and audit?
We can set up the six books, support the audit and review the report in the prescribed forms. Begin with our books of accounts compliance service.
Key takeaways
- Rule 10 requires six books of accounts and receipts for expenditure above Rs. 5, as printed.
- Audit must be done within six months of balancing, and the report goes to the Registrar within a fortnight (rule 11).
- Small trusts of gross income Rs. 1,000 or less, as printed, may use Forms IX and X.
- The auditor's report covers twelve particulars, with Forms XI and XII (rule 13).
- The special audit fee is not above two and a half per centum of gross annual income and not below Rs. 50 (rule 14).
Read next
- Sections 15 to 17 of the Madhya Pradesh Public Trusts Act, 1951: accounts, audit and the auditor's report
- Rules 15 to 19 of the Madhya Pradesh Public Trusts Rules, 1962: budget, fees, inquiry, penalty and repeal
- Sections 18 to 21 of the Madhya Pradesh Public Trusts Act, 1951: budget, inspection, copies and returns
Disclaimer: Based on the English texts of the Madhya Pradesh Public Trusts Act, 1951 and Madhya Pradesh Public Trusts Rules, 1962, as consulted on 3 October 2026; those copies do not state the date of their last amendment. Later amendments, State notifications and current fees should be checked with the State authorities. This article is general information, not legal advice; check the official text before acting.