aakar account 10 final_080

251 Approved by CDC, Nepal Journal Voucher f. Closing Journal Voucher After the closing of a fiscal year, all the accounting documents, books and statements are closed. At the closing of a fiscal year, if any accountability of any transaction remained unclear, it should be transferred to the coming fiscal year. The total Budget Release A/c, Budget Expenditure A/c, Cash A/c, Petty Cash Fund A/c and Consolidated Fund (Sarbasanchit Kosh), Freeze Account (Rokka Khata) of Bank are transacted in the journal vouchers. Journal Vouchers to be prepared at the closing of a fiscal year are as follows: i. While closing Petty Cash Fund, Dr. DTCO - Treasury Single Account Cr. Petty Cash Fund (Being amount of petty cash fund deposited into bank) ii. While closing Cash A/c, Dr. DTCO - Treasury Single Account Cr. Cash iii. While closing Budget Release A/c, Budget Expenditure A/c and TSA A/c, Dr. Budget Release A/c Cr. Budget Expenditure A/c Cr. DTCO - Treasury Single Account (Freeze A/c) iv. Closing of Advance A/c and transferring the advance to the coming year, a. While closing the account of advance at the end of the current year, Dr. BE (head of expense) Cr. Person (fake clearance, of advance) (Being the fake clearance is given to ................. person) b. While opening the last year’s advance in the beginning of current year, Dr. Person (fake clearance of advance of the last year) Cr. B.E. (head of expenses) c. While transferring accountability in the beginning of the coming fiscal year, Dr. DTCO - Treasury Single Account Cr. Budget Release (Being the amount of accountability transfer received as budget release)

252 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Glossary Description : detail Approval : permission for doing something Properties : assets Advance : amount given to person or parties before getting goods or service Budget : the estimation of expenditures and incomes Consolidated fund : combined fund Goshwara Voucher : journal voucher Narration : a brief description at the end Rectify : to correct Running bill : bill of expenditure presented by the contractors for payment Budget freeze : a balance amount remaining unused out of imprest fund Clearance of advance : settlement of advance through Monthly Statement of Expenditure Provident fund : a kind of retirement fund provided to the employees Annual closing : the process of closing the accounts at the end of fiscal year Exercise A. Answer the following questions in one sentence. 1. Write the objectives of journal voucher. 2. What is meant by journal voucher? 3. What is meant by advance journal voucher? 4. What is revolving fund? 5. What is meant by petty cash fund? 6. What do you mean by ‘deduction from salary’? B. Give short answers to the following questions. 7. What is meant by Goshwara Voucher, AGF No. 203? Mention its importance. 8. What are the things to be considered while maintaining Goshwara Voucher? 9. What is petty cash fund? Mention its objectives. 10. Describe the types of petty cash fund. 11. Write the objectives of Goshwara Voucher? 12. Describe the types of Goshwara Voucher in brief.

253 Approved by CDC, Nepal Journal Voucher NUMERICAL PROBLEMS 1. Prepare Journal Voucher for the following transactions, which occurred in the District Agriculture Office, Gorkha. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078-5-22, paid to Bhaju Ratna Engineering, Kathmandu, a sum of Rs. 1,30,000 for the purchase of a 100 cc. Hero Honda Motorcycle for office use. ii. Bought machinery of the value of Rs. 40,000 on 2078-5-27. iii. Paid salaries to the staff for the month of Marga Rs. 14,000 on 2078-5-28. iv. On 2078-5-28, issued payment order to DTCO to provide advance to Accountant, Mr. Naresh Aryal for the Accountant allowance of Rs. 2,000. v. Paid Rs. 20,000 to Rajaram Garments (Pvt.) Ltd. against a bill of uniform and boots on 2078-5-29. vi. On 2078-5-29, paid Rs. 1,200 as wages for repair and maintenance of machinery and equipment of the office, vii. Paid of Rs. 2,500 for the printing charges of letter pads, forms and registers on 2078-5-30. viii. On 2078-5-30, paid Rs. 5,50,000 against the construction of road as per rules. 2. Prepare the AGF No. 203. i. On 2078-8-7, paid to Nayab Subba, Miss Gayatri Shrestha Rs. 15,500 as an advance for purchasing uniform to the security staff. ii. Issued a payment order to DTCO Officer Mr. Shyam Shrestha for Rs. 5,500 as advance for the purpose of official tour on 2078-8-11. iii. Paid Rs. 2,00,000 to the building Contractor Sundar Dhakal as an advance for construction of office building on 2078-8-19. iv. Paid Rs. 25,000 as advance to the Consultant Mr. Bharat Giri for irrigation project on 2078-8-20. v. On 2078-8-25, an advance of Rs. 50,000 was given to Officer, M/s Panta of Rs. 5,000 for TADA and Rs. 45,000 for purchasing a machinery for office use. vi. On 2078-8-30, as M/s Panta could not go for the tour because of her private reason, and thus advance given to her was returned, submitted the bank voucher and cleared her account. 3. Prepare the journal voucher of District Administration Office, Kathmandu. The office submitted payment order from to the DTCO for payment through cheque. i. The expenses of Rs. 2,50,000 were incurred till 28th Ashadh out of the monthly reimbursed revolving fund of Rs. 3,00,000 from the Office of the Treasury and Comptroller. The balance of Rs. 50,000 was refunded to the

254 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Office of the Treasury and Comptroller. ii. On 2078-6-1, out of the total staff salaries of Rs. 40,000 for the month of Bhadra, Rs. 4,000 were deducted for provident fund as per rules and the balance was distributed and the deducted amount was deposited in the concerned account on the same day. 4. Journalise the following transactions in Goshwara Voucher, AGF No. 203 in the book of Irrigation Office, Gorkha. The office submitted payment order from to the DTCO for payment through cheque. i. Paid Rs. 15,000 against purchase of uniform to the staff on 2078-8-10. ii. On 2078-8-12, an advance of Rs. 15,000 was given to Section Officer Mr. Amar Shakya for the purchase of stationery. iii. On 2078-8-20, clearance is given to Section Officer Amar Shakya by approving the bill of Rs. 16,000 submitted by him. iv. On 2078-8-22, paid Rs. 1500 to Shakya Oil Stores for the fuel purchased for office work. v. On 2078-8-30, of the total salaries of Rs. 22,000 for the month of Mangsir, it was distributed after deducting P.F contribution of Rs. 4,000 and income tax of Rs. 2,000. vi. Received books and materials expenses of Rs. 15,000 from Central Level Office and recorded as a budget release. 5. Prepare Goshwara Voucher AGF No. 203, for the following transactions. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078-6-10, District Agriculture Office, Rasuwa, paid Rs. 7,000 to ABC Nursery against a purchase ofinsecticides and fertilizerforfree distribution to the selected farmers. ii. Paid Rs. 20,111 to the Red Cross Society, Dhumcha as donation on 2078-6-12. iii. Paid Rs. 35,000 for the purchase of a horse on 2078-6-14. iv. Machinery and equipments advance of Procurement Officer Ramesh Sharma for Rs. 40,000 was cleared for excess amount of Rs. 4000 as per the bill submitted by him on 2078-6-20. v. Paid Rs. 15,000 to Nepal Television for advertisement on 2078-6-25. vi. On 2078-06-28, salary for the month of Ashwin Rs. 44,000, dashain salary Rs. 40,000 and allowance Rs. 3,000 in total after deducting Rs. 8,000 as provident fund Rs. 5,000 as provident fund loan and Rs. 1,500 as income tax. The deducted amounts were deposited to the concerned offices on the next day. vii. Received a payment order from DTCO for the expenditure made for the last month of Bhadra amounting to Rs. 2,50,000.

255 Approved by CDC, Nepal Journal Voucher 6. Prepare Goshwara Voucher in the book of Customs Office, Sunauli. The office submitted payment order from to the DTCO for payment through cheque. i. Issued Rs. 2,500 of payment order to DTCO to provide advance to Section Officer Surendra Neupane of official tour to Biratnagar on 2078-8-7. ii. On 2078-8-8, paid Rs. 5,000 to Sitaram, the Cashier of the office, for petty cash fund. iii. Issued a payment order to DTCO of Rs. 11,00,000 for the purchase of office building on 2078-8-15. iv. Paid Rs. 15,000 to ABC Furniture Centre, Sunauli against the purchase of office furniture on 2078-8-22. v. Issued a payment order to DTCO of Rs. 1,500 to Shiva Shankar, the Senior Accountant, for his accounts allowance on 2078-8-26. vi. Out of the total salary of Rs. 66,000 of Mangsirfor provident fund Rs. 12,000, income tax Rs. 1,500 and personnel loan Rs. 3,500 and the rest distributed on 2078-8-28. 7. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Bara. The office submitted payment order from to the DTCO for payment through cheque. i. Received Rs. 5,00,000 from DTCO as initial revolving fund on 2078/4/1. ii. Paid Rs.5,000 for purchasing guard’s uniform on 2078/4/5. iii. Provided Rs. 20,000 as advance to store-keeper Mr. Raghu Nath Ghimire for purchasing computer on 2078/4/15. iv. Out of total staff’s salaries of Rs. 1,00,000 for the month of Shrawan, Rs. 10,000 was deducted for providentfund and the balance was distributed on 2078/4/30. v. Advance cleared by store-keeper Mr. Raghu Nath Ghimire forthe purchase of computer against his bill on 2078/4/30. vi. Issued a payment order to DTCO for providing salary of Rs. 3,89,500 after deducting Provident Fund of Rs. 1,00,000, Social Security Tax Rs. 5,500, Provident Fund Load of Rs. 20,000, Citizen Investment Trust of Rs. 20,000 and Income tax of Rs. 15,000. On the same date the deducted amount were deposited into concerned Office. 8. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Bardiya. i. On 2079/4/2, recorded as budget release for Rs. 70,000 as a rent pay. ii. On 2079/4/4, A budget release of Rs. 10,00,000 was recorded for the distribution of salary, local allowances and dearness allowances for the month of Shrawan. iii. On 2079/4/6, paid Rs. 15,000 for telephone charge. iv. On 2079/4/8, Rs. 3,000 was paid in advance to section officer Mr. Purna Prasad Dawadi as travelling allowance. v. On 2079/4/13, amount paid to Kharidar Prem Ghimire for the establishment of petty cash fund Rs. 5,000. vi. On 2079/4/20, Rs. 1,000 paid to section officer Mr. Purna Prasad Dawadi for clearance his advance.

256 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 9. Prepare the Gohswara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Makawanpur. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078/4/11, budget release of Rs. 3,00,00 was recorded for the purchase of furniture. ii. On 2078/4/15, paid Rs. 5,000 for stationery. iii. On 2078/4/16, store keeper Mr. Krishna Hamal submitted a bill of Rs. 15,000 and a bank voucher of Rs. 5,000 for clearance of computer advance. iv. On 2078/4/19, reimbursed the following expenses made from the petty cash fund. - Postage Expenses Rs.60, Wages Rs. 100 and Repair Rs.150. v. On 2078/4/20, advance cleared by section officer Mr. Yubraj Lamsal for the purchase of computer of Rs. 30,000 against his bill. 10. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Bhaktapur. i. On 2078/8/6, received payment order release from DTCO as per the payment order statement for the expenditure made for the month of Rs. 10,00,000. ii. On 2078/8/16, petty cash fund of Rs. 5,000 was created entrusting the responsibility to Kharidar Nisha Pant. iii. On 2078/8/17, as per the bills submitted by Section Officer Usha Neupane for the purchase of machine, Rs. 16,000 advance was cleared after paying Rs. 3,000. iv. On 2078/8/18, store keeper Mr. Rajesh Hamal submitted bill and voucher for Rs. 2,000 and cash Rs. 1,000 forthe clearance of his advance fortravelling allowance. v. On 2078/8/20, paid Rs. 5,000 for fuel for vehicle. 11. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Sunsari. The office submitted payment order from to the DTCO for payment through cheque. i. On 2079/4/2, recorded as budget release of Rs. 5,000, Rs. 10,000 and Rs. 20,000 respectively for dresses, dearness allowances and meeting allowances. ii. On 2079/4/14, paid electricity charge of Rs. 22,000 and telephone charge Rs. 10,000. iii. On 2079/4/17, accountant R. Darji submitted the bills for the purchase of furniture for Rs. 14,000 and cleared his account. iv. On 2079/4/29, out of total staff’s salaries of Rs. 80,000 for the month of Shrawan, Rs. 8,000 was deducted for Personnel Provident Fund, Rs. 2,000 for Citizen Investment Fund and Rs. 500 for income tax and the balance was distributed on the same date. v. On 2079/4/29, section officer Mr. Khem Bhusal submitted expenditure bill vouchers of Rs. 2,25,000 for the clearance of Motorcycle advance of Rs. 2,30,000.

257 Approved by CDC, Nepal Journal Voucher 12. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Parsa. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078/8/6, received payment order release from DTCO as per the payment order statement for expenditure made for the last month of Rs. 15,10,000. ii. On 2078/8/7, paid house rent for the month of Ashwin & Kartik @ Rs. 10,000 per month to the house owner Manoj Maharjan. iii. On 2078/8/8, reimbursed the following expenses made from the petty cash fund. - Photocopy expenses Rs.70. Repair and maintenance Rs.300. iv. On 2078/8/9, store keeper Mr. Rambabu cleared his advance of Rs. 45,000 which was paid forthe purchase of computer by producing bill of Rs. 50,000. v. On 2078/8/10, section officer Mr. Santosh Dhakal returned his advance of Rs. 5,000 which was paid for the travelling allowance. 13. Prepare the Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Bara. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078/6/7, received payment order release from DTCO as per the payment order statement for expenditure made for the last month of Rs. 25,00,000. ii. On 2078/6/8, paid Rs. 22,500 for educational materials. iii. On 2078/6/10, advance of office building rent Rs. 18,000 for the month of Bhadra has been cleared. iv. On 2078/6/15, paid Rs. 15,000 in advance to section officer Mr. Salman Khan as travelling allowance. v. On 2078/6/28, staff salary for the month of Ashwin Rs. 25,000 was paid after deducting Provident Fund 2,500 and Income Tax Rs. 500. 14. Prepare the Journal Voucher (AGF No. 203) from the following transactions in the book of District Administration Office, Lalitpur. i. On 2078/5/3, received payment order release Rs. 5,00,000 for the expenditure of Shrawan from the Office of Treasury and Account Comptroller. ii. On 2078/5/5, paid Rs. 50,000 for house rent for the month of Shrawan. viii. On 2078/5/10, paid Rs. 1,15,000 in an advance to Officer Mr. Krishna Prasad Adhikari for the construction of canal. iv. On 2078/5/29, provident fund Rs. 10,000, income tax Rs. 2,000 and provident fund loan Rs. 4,000 are deposited into concerned account. v. On 2078/5/29, Officer Mr. Krishna Prasad Adhikari returned his advance of Rs. 1,15,000 which was paid for the construction of canal.

258 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 15. Prepare the Journal Voucher (AGF No. 203) from the following transactions in the book of District Administration Office, Jhapa. i. On 2078/8/6, received a bank order of Rs.9,25,000 and budget release order of Rs. 11,52,000 for the actual expenditure of last month from the Office of Treasury and Account Comptroller. ii. On 2078/8/7, Officer Mr. Bhabilal Niure submitted a bill of Rs. 9,00,000 and a bank voucher of Rs. 1,00,000 for clearance of motor car advance; hence, the advance was cleared. iii. On 2078/8/8, paid Rs. 8,000 for meeting allowance. iv. On 2078/8/9, advance was cleared by Officer Mr. Tika Chapagain for conducting the training programme against his bill of Rs. 12,000 and paid Rs. 2,000. v. On 2078/8/29, staff salary for the month of Ashwin Rs. 42,000 was paid after deducting Provident Fund 10,000 and Income Tax Rs. 3,000. 16. Prepare Journal Voucher (AGF No. 203) from the following transactions in the book of District Administration Office, Nawalparasi. The office submitted payment order from to the DTCO for payment through cheque. i. On 2078/5/2, received payment order release Rs. 8,00,000 from the Office of Treasury and Account Comptroller. ‘ ii. On 2078/5/9, issued Rs.20,000 for the fuel for vehicle and Rs. 12,000 for medical treatment. iii. On 2078/5/10, a letter of credit (L/C) of Rs. 1,20,000 has been issued in favour of TATA Motors Company for the supply of a NANO car. iv. On 2078/5/17, as per the bills submitted by Officer Shanker Raj Baral for the purchase of furniture Rs. 25,000 his advance was cleared after paying Rs. 5,000. v. On 2078/5/20, budget release order was received for Rs. 2,50,000 being actual expenditure made in the last month. vi. On 2078/5/22, budgetRs. 70,000 is transferredfrom machinery to furniture. vii. On 2078/5/23, purchase computer and printer for Rs. 1,70,000. viii. On 2078/5/25, reimbursement of petty cash fund for the following petty expenses. - Email charge Rs. 1050, refreshment Rs. 1,510, repair and maintenance Rs. 650, taxi fair Rs. 900. ix. On 2078/5/27, Rs. 50,000 paid for dearness allowance was wrongly debited to other allowances and has been rectified. x On 2078/5/29, received payment order release from DTCO as per the Monthly Statement of Expenditure made forthe last month of Rs. 10,00,000.

259 Approved by CDC, Nepal Journal Voucher S.L.C/SEE Examination Questions 1. Prepare Goshwara Voucher (AGF No. 203) of District Administration Office, Dolpa from the following transactions. 2068(R) a. On 2067/4/5 received Rs. 9,00,000/- as budget release. b. On 2067/4/15 the telephone charge Rs. 7,000/- for the month of Asar was paid. c. On 2067/4/17 storekeeper K. Pradhan was paid an amount ofRs. 1,20,000/- as an advanced for the purchase of office furniture. d. On 2067/4/27 office furniture purchase advanced of storekeeper K. Pradhan Rs. 1,20,000/- has been cleared against the bills for purchase of Rs. 1,25,000/-. e. On 2067/4/30 out of total salary to staff Rs. 2,50,000/- for the month of Shrawan Rs. 25,000/- were deducted as provident fund and the balance was distributed. 2. Prepare Goshwara Voucher (AGF No. 203) on the basis of the following transactions of District Administration Office, Kailali. 2067(S) a. On 2066/4/7, received Rs. 3,50,000/- as budget release from DTCO. b. On 2066/4/10, Rs 25,000/- paid for computer purchase. c. On 2066/4/15, section officer Mr. Rupak Bista was paid Rs. 6,000/- in advance of TADA. d. On 2066/4/20, a petty cash fund of Rs. 1,000/- established. e. On 2066/5/25, the advance given to section officer, Mr. Rupak Bista, was cleared as per submitted documents and the excess expenditure of Rs. 500/. 3. Prepare Goshwara Voucher (AGF No. 203) of District Administration Office, Dolkha for the following transactions. 2067(R) a. On 2066/5/12 received Rs. 10,00,000/- as budget release from DTCO. b. On 2066/5/18 purchased computer for Rs. 35,000/- and paid. c. On 2066/5/20 advance paid to Section Officer Sarita Puri Rs. 6,000/- . d. On 2066/5/25 total salary including provident fund for the month of Bhadra Rs. 1,98,000/- was distributed deductingRs. 36,000/- as provident fund and Rs. 4000/- for income tax. e. On 2066/5/28 as per statement submitted by Section Officer Sarita Puri, her advance was cleared and excess expenditure amount Rs. 500/-. 4. Prepare Goshwara Vouchers (AGF No. 203) of District Agriculture Office, Kathmandu from the following transactions : 2066 (S) a. On 2066/4/3, Rs. 15,00,000 is received as budget release from DTCO. b. On 2066/4/20, store-keeper Kamal Krishna Shrestha was paid Rs. 2001 in advance for the official letter dispatch through post office. c. On 2066/4/25, a petty cash fund of Rs. 5000/- established.

260 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal d. On 2066/4/27, Bira Furniture Industry was paid Rs. 50,000/- for office furniture purchased. e. On 2066/4/30, out of employees’ salary of Rs. 2,00,000 for the month of Shrawan Rs. 20,000 and Rs. 3,000/- were deducted as provident fund and income tax respectively and balance was distributed. 5. Prepare journal voucher (AGF No. 203) of District Administration Office, Kathmandu from the following transactions : 2066(R) a. On 2066/4/11, Rs. 8,00,000 was received as revolving fund through DTCO. b. On 2066/4/13, Rs. 15,000 was paid for furniture purchase. c. On 2066/4/14, issued Rs. 3,000 to create petty cash fund and handed it over to accountant Shyam Rahut. d. On 2066/4/25, an excess amount Rs. 5,000 was paid to the section officer Shova Gurung in order to settle the TADA as shown in Monthly Statement of Expenditure of Rs. 25,000. e. On 2066/4/30, out of total salary to staff Rs. 1,50,000 for the month of Shrawan Rs. 25,000 were deducted as provident fund and the balance was distributed. 6. Prepare AGF No. 203 (Goshwara Voucher) of District Forest Office, Sarlahi on the basis of following transactions. 2065(S) a. On 2065-10-2, additional budget of Rs. 8,00,000 is received from DTCO. b. On 2065-10-3, established a petty cash fund of Rs. 5,000/- of the responsibility of accountant Ramesh Tiwari. c. On 2065-10-4, Forestor Lalita Rai was paid Rs. 9,000/- for TADA advance. d. On 2065-10-15, Rs. 25,000/- is paid for the purchase of machinery. e. On 2065-10-21, the advance of Forestor Rai has been cleared by presenting her TADA statement. 7. Prepare Goshwara Vouchers (AGF No. 203) on the basis of following transactions of District Administration Office, Palpa : 2065(R) a. On 2063/4/4, received budget release of Rs. 5,00,000 from DTCO. b. On 2063/4/10, Rs. 25,000 paid for computer purchased. c. On 2063/4/15, Store keeper Mr. Shankar Sharma was paid an amount of Rs. 10,000 as an advance for the purchase of Office furniture. d. On 2063/4/20, established a petty cash fund of Rs. 500. e. On 2063/4/25, the advance of store keeper Mr. Shankar Sharma of Rs. 10,000 cleared as per the bill submitted by him after purchasing office furniture. 8. Prepare AGF No. 203 of District Administration Office, Siraha on the basis of following transactions: a. On 2072-4-2 received Rs. 20,00,000 as budget release from DTCO. b. Rs. 8,00,000 paid for computer on 2072-4-20.

261 Approved by CDC, Nepal Journal Voucher c. Rs. 50,000 provided as an advance to Section Officer Harkaman Tamang for travelling expenses on 2072-4-22. d. The salaries of Shrawan distributed from Rs. 5,00,000 deducing the amount Rs. 50,000 for Provident Fund on 2072-4-30. e. On 2072-4-31 Section Officer Harkaman Tamang’s advance for the travelling expenses was being cleared by approving the bill of Rs. 55,000 and excess expenditure Rs. 5,000 paid to him. SEE 2074 (R) 9. Prepare AGF No. 203 of District Agriculture Office, Rukum for the following transactions: a. On 2073-4-05 received Rs. 25,00,000 as additional budget from DTCO. b. On 2073-4-8 Rs. 40,000 was paid for purchasing office furniture. c. On 2073-4-10 Section Officer Nita Sharma was paid Rs. 80,000 as an advance for the purchase of computer for office. d. On 2073-4-20 petty cash fund of Rs. 15000 was established. e. On 2073-4-23 out of employee’s salary of Rs. 2,00,000 for the month of Shrawan, Rs. 20,000 and Rs. 5,000 were deducted as provident fund and income tax respectively and balance was distributed. SEE 2073(S) 10. Prepare AGF No. 203 of District Agriculture Office, Dolakha on the basis of following transactions. a. On 2073-7-20, received Rs. 4,00,000 as additional budget from DTCO. b. On 2073-7-23, petty cash fund of Rs. 10,000 was established. c. On 2073-7-24, accountant Mr. Siyaram Chaudhary was given advance Rs. 25,000 for furniture. d. On 2073-7-29, paid Rs. 30,000 as house rent to owner Mr. Netra Karki for the month of Kartik. e. On 2073-7-30, the salary of the month Kartik Rs. 2,00,000 was distributed deducting Provident Fund Rs. 20,000. SEE 2073(R) 11. Prepare AGF No. 203 of District Education Office, Parbat on the basis of following transactions. a. On 2072-4-2 received Rs. 17,00,000 as budget release order from DTCO. b. On 2072-4-07 paid Rs. 25,000 to Chaudhary Furniture Industry for the purchase of furniture. c. On 2072-4-15 petty cash fund of Rs. 10,000 was established to the responsibility of accountant Miss Dolma Sherpa.

262 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal d. On 2072-4-30 the salary for the month of Shrawan Rs. 3,00,000 was distributed, deducting Rs. 30,000 for Provident Fund. e. On 2072-4-31 the deducted Provident Fund amount was deposited to concerned account. 2072(R) 12. Prepare AGF No. 203 on the basis of following transactions of District Administration Office, Parbat . a. On 2071-4-6 received Rs. 10,00,000 as revolving fund from DTCO. b. On 2071-4-12 paid Rs. 5,000 to establish petty cash fund. c. On 2071-4-14 Section Officer Mr. Rabin Gole was paid Rs. 35,000 for travelling expenses advance. d. On 2071-4-20 Rs. 45,000 paid for computer purchase. e. On 2071-4-30 the salary for the month of Shrawan Rs. 1,60,000 was distributed after deducting Provident Fund Rs. 16,000 and income tax Rs. 2,000. 2071(R) 13. Prepare Goshwara Voucher (AGF No. 203) of District Agriculture Development Office, Chitwan according to the given transactions. a. On 2070-4-3 received Rs. 15,00,000 as budget release from DTCO. b. On 2070-4-10 JTA Mr. Suman Chaudhary was paid Rs. 1,50,000 in advance for purchase of motorcycle. c. On 2070-4-23 house owner Mrs. Kabita Sharma was paid Rs. 45,000 for home rent. d. On 2070-4-26 Rs. 30,000 was paid to Surkhet Furniture Centre for the purchase of furniture. e. On 2070-4-31 the salary for the month of Shrawan Rs. 1,40,000 was distributed by deducting Rs. 14,000 as Provident Fund. 2070(R) 14. Prepare AGF No. 203 of District Education Office, Rukum for the following transactions. a. On 2069-4-4 Rs. 10,00,000 was received as budget release from DTCO. b. On 2069-4-6 Rs. 13,000 was paid for telephone bill. c. On 2069-4-7 Rs. 35,000 was paid as an advance to accountant Prem Shrestha for purchasing computer. d. On 2069-4-25 Rs. 1,30,000 is paid after deducting Rs. 15,000 provident fund, Rs. 2,000 citizen investment fund and Rs. 3,000 income tax to distribute salary for the month of Shrawan. e. On 2069-4-28 advance cleared by accountant Prem Shrestha for the purchase of computer against the bill. 2069(R)

263 Approved by CDC, Nepal Journal Voucher Bank Cash Book Unit 9 Bank Cash Book CDC Syllabus 9.1 Introduction 9.2 Accounts incorporated in it 9.3 Use and practice 7 Periods After studying this unit, students will be able to : write the meaning of bank cash book, state the importance of bank cash book, write the factors to consider while preparing bank cash book, know the accounts include in bank cash book, prepare bank cash book. Learning Objectives Government of Nepal AGF No. 209 ................ Office /Dept./Ministry ................. Bank Cash Book For the Month of ....................... Date V.N. Particulars Cash Balance Bank Balance Budget Expenditure Advance of current fiscal year Advance of last fiscal year Miscellaneous Remarks Dr. Cr. Dr. Cr. Ch. No./ Electronic Transaction code Balance B. H. No. Amt. (Rs) Given Cleared Carry Forwarded Cleared Dr. Cr. 1 2 3 4 5 6 7 8 9=(6-7) 10 11 12 13 14 15 16 17 18 Total for this month Total upto last month Total upto current month

264 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 1. Introduction New Accounting System has given much emphasis on the banking transactions for the receipt and payment of cash. No expenditures are made in cash except that forthe petty amount, which are paid from petty cash fund. For the control of cash in the government office, all the cash receipts are received through the bank, or if received in cash, then immediately deposited into the bank and all the payments are made through the bank except that for the petty amount. Almost all the government transactions are performed on cash basis i.e. through bank dealing. Thus, a book of account, which contains all the cash payment and receipt through the bank is prepared by each government office, is known as a bank cash book. In another word, a bank cash book may be defined as the book of account, maintained by each operating level office as its general ledger to record the cash receipt and payment through the bank during a certain period on the basis of their corresponding journal vouchers. This book was used as ‘Mal Cash Ledger’ in the past in some places, where there were no banking services. But with the provision of banking facilities in every district, it has now been used as a bank cash book throughout the country. Since, it contains various columns, it is also called a multi-column cash book or multi column ledger or general ledger. Every account is divided into debit and credit columns for recording the debit or credit headings and, thus, it is based on the principle of double entry system. It has altogether 18 columns and 6 accounts viz. cash A/c, bank A/c, budget expenditure A/c, advance A/c for current year, advance A/c for previous fiscal year and miscellaneous A/c to record the necessary information. It is prepared by AGF No. 209. This book is closed at the end of every month to check the arithmetic accuracy. Key Point A bank cash book is a general ledger maintained by all the operating level offices to record cash receipt and payment made through the bank. 2. Importance of Bank Cash Book Abank cash book is the general ledger ofthe operating level offices ofthe Government of Nepal, which contains all the necessary accounts like cash, bank, expenditures, advance and miscellaneous at a place. It gives complete information about the transactions. Thus, it plays a tremendous role to satisfy the objectives of the New Accounting System. The following points of the bank cash book may further highlight its importance: i. Helps to Provide Complete Information In bank cash book, all the transactions are classified into the five accounts which provide actual and complete financial information. Such as cash A/c provides cash balance, bank A/c provides bank balance, budget expenditure A/c provides total budget expenditure and so on. The information plays vital role to take any kinds of decision. It helps in planning of cash requirement and disbursement. ii. Helps to Detect and Correct Numerical Errors Bank cash book is based on the principles of double entry book keeping system. It is closed at the end of every month by preparing trial balance. Trial balance helps to check the arithmetical accuracy which helps to detect errors immediately in any transactions.

265 Approved by CDC, Nepal Bank Cash Book iii. Simplicity in transfer of responsibility In government office, the staff are transferred to another office and place or promoted. At the period of transfer or being promoted, he should handover the responsibility; so, the bank cash book provides all the factual and complete details of all the transactions. So, it makes easier or simple to handover the responsibility. iv. Provides information about advance transactions It maintains separate account for recording advance transactions. So, it provides actual and factual information of advance given, advance cleared and uncleared advance amount. v. Helps to detect and correct the frauds It helps to detect and reduce the frauds, misappropriation, misuse and embezzlement of cash by the auditing of the books of accounts. It is the principal book of the operating level offices because it is basic document of the office. 3. Different Accounts of Bank Cash Book There are five accounts which are briefly discussed below: i. Cash Account The account maintained to keep the record of cash received and paid is called cash A/c. It has two columns respectively debit and credit. Debit column is used to keep the record of cash received or cash inflow and credit column is used to keep the record of cash paid or cash outflow. ii. Bank Account Theaccountmaintainedtokeepthe recordof cashdepositedintobankandwithdrawal of cash from the bank as well to see the balance of cash in the bank is called bank A/c. It contains four columns respectively debit, credit, cheque no. and bank balance. Debit column is used to keep the record of cash deposited into the bank, credit column is used to keep the record of withdrawal of amount from the bank, cheque no. column is used to keep the record of cheque number which is used to draw money from the bank and bank balance column is used to keep the record of balance of amount which is remained in the bank (Dr. Rs. - Cr. Rs.). iii. Budget Expenditure Account The account maintained to record expenditures is known as expenditure A/c. It contains two columns respectively budget head no. and Budget expenditure. First column is used to keep the record of related budget head number and second column is used to keep the record of amount of expenditures. Amount of advance provided is recorded as expenditure in the column until it is cleared. While clearing advance, amount of advance provided is recorded inside the bracket and actual amount of expenditure is shown outside the bracket. iv. Advance Account for Current Year The account is used to keep the record of advance provided and advance cleared for current year. It contains two columns. First column is used to keep the record of advance given and second column is used to keep the record of advance cleared.

266 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal v. Advance Account for Previous Fiscal Year Under this column the advance given in the last fiscal year which is carry forwarded in the current fiscal year should be written. Similarly, the advance of last fiscal year which is cleared in the current fiscal year should be written in advance of last fiscal year. In order to mention the description in advance of last fiscal year, the responsibility carry forwarded advance clearance, deducted amount, amount after adjustment and uncleared advance are to be posted. vi. Miscellaneous Account This account is maintained to keep the record of other transactions not related with the above accounts such as petty cash fund, revolving fund, deductions made out of the salary, etc. It contains three columns. First column is used to keep the record of the account numbers of miscellaneous transaction, second column is used to keep the record of debit amount and third column is used to keep the record of credit amount. 4. Specimen of Bank Cash Book Government of Nepal AGF No. 209 ................ Office /Dept./Ministry ................. Bank Cash Book For the Month of ....................... Date V.N. Particulars Cash Balance Bank Balance Budget Expenditure Advance of current fiscal year Advance of last fiscal year Miscellaneous Remarks Dr. Cr. Dr. Cr. Ch. No./ Electronic Transaction code Balance B. H. No. Amt. (Rs) Given Cleared Carry Forwarded Cleared Dr. Cr. 1 2 3 4 5 6 7 8 9=(6-7) 10 11 12 13 14 15 16 17 18 Total for this month Total upto last month Total upto current month Prepared by : .............................. Submitted by : .............................. Approved by: .............................. Date : ......................................... Date : ......................................... Date : ......................................... Designation: ......................... Designation: .............................. Designation: .............................. The details to be filled in different columns of a bank cash book are mentioned below: 1. In the ‘column l or date column’, the date of the transactions is mentioned. 2. In the ‘column 2 or voucher no. column’, the voucher number of the transactions is mentioned in this column. 3. In the ‘column 3 or particulars column’, the short narration of the entry is mentioned. 4. In the ‘column 4 and 5 or Dr. Rs. & Cr. Rs. of Cash A/c’, cash received from other is posted in column 4 or debit side and cash paid to other is posted in column 5 or credit side.

267 Approved by CDC, Nepal Bank Cash Book 5. In the column 6, 7, 8, and, 9 or Dr. Rs., Cr. Rs., cheque no. & Balance of Bank A/c’, amount received from other and received revolving fund is mentioned in column 6 and amount paid to other through the cheque (DTCO - TSA) is posted in column 7. In column 8, cheque no. or electronic transaction code is mentioned and in column 9, the balance amount (debit - credit) is mentioned through TSA by DTCO. 6. In the ‘column 10 and 11 or B.H. No.& amount Rs. of Budget Expenditure Account’, the budget head number is written in column 10 and the amount of the expenditure is mentioned in column 11 respectively. 7. In the ‘column 12 and 13 or given Rs. & cleared Rs. of Advance Expenditure A/c’, the amount of advance given in the column 12 or given column and the amount of clearance in the column 13 cleared column are mentioned. 8. In the column 14 and 15 advance of last fiscal year, the responsibility transfer of the last fiscal clear is recorded in column no. 14 and advance cleared of last fiscal year is recorded in column no. 15. 9. In the column 16 and 17, Dr. Rs and Cr. Rs. of miscellaneous A/c is records the debit amount of the account other than cash, band, budget, expenditure and advance in column no. 16 and the records of credit amount of the account other than cash, bank, budget expenditure and advance in the column no. 17. 10. The last column, ‘column 18 or remark column’ contains the signature or other details of a transaction like advance related with the last year, etc., if any. 5. Consideration Guidelines for Preparing a Bank Cash Book A bank cash book is the general ledger of each operating level office. Thus, all the postings are made according to the journal voucher of the transactions. There are many things to be kept into account while preparing it. The common and important considerations of preparing bank cash book are as given below: i. Since a bank cash book is based on the journal vouchers, journal voucher for each and every transaction should be properly maintained. ii. All types of transactions are entered in the bank cash book including cash receipt and payment in ’cash A/c’, receipt and payment through the bank in ‘bank A/c’, the actual expenditure in ‘budget expenditure A/c’, advance transactions in ‘advance expenditure A/c’ and the rest of others in ‘miscellaneous A/c’. iii. While posting transactions to a bank cash book from the journal vouchers, amount debited in the journal voucher should be debited in the concerned A/c and credited in the journal voucher should be credited in the concerned A/c. iv. Since there’s a single column for amount in the budget expenditure A/c, the amount debited is mentioned openly and that credited is mentioned in a bracket. Similarly, in the advance expenditure A/c the column ‘given’ denotes debit and ‘cleared’ denotes credit. v. Transactions of revenue except budget release, are not recorded in the bank cash book. vi. In case of the posting of petty cash expenditures, it is recorded only at the time of reimbursement.

268 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal vii. In case of advance given, it should be posted in three accounts which are bank A/c, budget expenditure A/c and advance A/c. viii. In case of advance clearance, it should be posted twice in the budget expenditure account and advance cleared A/c. While posting in expenditure A/c, the amount of real expenditure should be shown outside the bracket and the amount of advance cleared should be shown inside the bracket. ix. In order to check the numerical correctness (accuracy), a trial balance may be prepared after preparing this book. The total amount should agree to assure its accuracy. Otherwise, the difference of trial balance should be equal to the difference between advance given and cleared. x. The inter-head transfer of budget will not affect the budget release, cash and bank accounts and, hence, it will not appear in the bank cash book. But the inter office transfer of budget will be appeared in it as it affects the budget release, cash or bank account for the time being, to both the offices. xi. All the columns, which contain amount are totaled monthly except that of bank balance and carried forward to the beginning of next month and finally annual closing is made. 6. Preparation of Bank Cash Book A bank cash book is based on the journal vouchers of the transactions. Thus, the posting should be made according to the nature of goshwara primary entries. The process of posting of the different types of journal vouchers are discussed below: A. General Journal Voucher General journal voucher refers to the actual expenditure, for which immediate payment is made through the bank for the receipt of goods or services. The entry is, Dr. B.E. (Budget head of expense) Cr. DTCO - Treasury Single Account Thus, the posting is made in the budget expenditure column i.e. amount is mentioned without bracket and Cr. side of ‘bank A/c’ with the same value. B. Advance Journal Voucher Advance Journal voucher refers to the payment of amount through a bank to a certain person/party for incurring the expenditure in the near future. It is the payment before receiving the goods or services. Thus, until expenditure is made on the specified heading, it is not regarded as budget expenditure. Thus, it should be entered twice-once at the time of giving advance and the next at the time of clearing it. While giving advance: Dr. Person (advance for ........... (budget head) Cr. DTCO - Treasury Single Account

269 Approved by CDC, Nepal Bank Cash Book Thus, the amount is posted in three places i.e. the budget expenditure A/c (openly, without bracket), in the ‘given column’ of advance expenditure A/c and in the Cr. column of bank A/c. While Clearing Advance Under Different Conditions i. When clearance is made by returning the whole amount, not being spent, Dr. Cash/DTCO - Treasury Single Account Cr. Person clearance of advance for ................ (budget head) Thus, it is posted once in debit side of bank A/c and next in the clearance column of advance expenditure A/c, in budget expenditure, it is recorded in the brackets. But it should be remembered that if the amount is debited in cash A/c instead of debiting in bank A/c directly, then that should be again posted in debit side of bank A/c and credit side of cash A/c by assuming the cash is immediately deposited into bank. ii. When clearance is made by spending all the amount of advance exactly, Dr. B.E .................. (budget head) Cr. Person clearance of advance for ...............(budget head) The posting is made, once in the debit side of budget expenditure A/c (openly, without bracket), then in the clearance column of advance expenditure A/c and again in the Cr. side of budget expenditure A/c (inside bracket) to cancel the earlier mentioned amount of expenditure. iii. When clearance is made by spending more than the amount of advance, Dr. B.E ................. (budget head) Cr. Person clearance of advance for ...............(budget head) Cr. DTCO - Treasury Single Account Example, When advance given to Ramesh the Section Officer is Rs. 3,000 for Travelling and the expenditure incurred is Rs. 3,500. Then, the entry is: Dr. B.E. Travelling Expenses 22612 3,500 Cr. S.O. Ramesh clearance of advance for Travelling Expenses 3,000 Cr. DTCO - Treasury Single Account Thus, the posting is made once on in the debit of budget expenditure column A/c Rs. 3,500 i.e. without bracket and then in the credit of budget expenditure A/c i.e. inside bracket Rs. 3,000 to cancel the earlier mentioned expenditure or Rs. 3,000 and lastly Rs. 3,000 in the clearance column of advance A/c and 500 in the credit column of bank A/c.

270 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal iv. When the clearance is made by spending less than the amount of advance and returning the surplus amount in the office, Dr. BE ..................... (budget head) Dr. Cash/DTCO - Treasury Single Account Cr. Person clearance of advance for ................ (budget head) For Example, Advance given to Section Officer Ramesh Rs. 3,000 on travelling expenses and the expenditure incurred Rs. 2,600. The entry is: Dr. B.E. Travelling Expenses 22612 2,600 Dr. Cash/DTCO - Treasury Single Account 400 Cr. S.O. Mr Ramesh clearance of advance for travelling expenses 3,000 v. The common or combined formula of advance clearance is: Advance ≠ B.E. (budget expenses) Dr. B.E ............... budget heading Dr./Cr. DTCO - Treasury Single Account Cr. Advance cleared by for .......... (budget head) (Being advance cleared) Thus, the posting is made, once in the debit of expenditure A/c, Rs. 2,600 openly; then in credit of budget expenditure A/c (inside bracket) Rs. 3,000 to cancel the earlier mentioned expenditure of Rs. 3000; in the clearance column of advance expenditure A/c, Rs. 3,000 and in debit column of bank A/c Rs. 400. But it should be remembered that if the cash return of Rs. 400 is mentioned in debit column of cash A/c instead of debiting it directly, in debit of bank A/c that should be debited in bank A/c by crediting the cash A/c, assuming that cash of Rs. 400 is immediately banked. C. Miscellaneous Journal Voucher Miscellaneous journal voucher refers to: i. Budget Release, ii. Deductions from Salary, iii. Petty Cash Fund, iv. Loan and Budget Transfer, etc. These are posted in debit or credit side of miscellaneous A/c by debiting or crediting the cash and/or bank A/c. For example: i. Budget Release, received by cash Dr. Cash Cr. Budget Release

271 Approved by CDC, Nepal Bank Cash Book Posting is made, by debiting cash A/c and crediting miscellaneous A/c. Dr. DTCO - Treasury Single Account Cr. Cash (Being deposited into bank) Again then, bank A/c is debited and cash A/c is credited, for depositing the cash into bank. ii. Budget Release received into bank. Dr. DTCO - Treasury Single Account Cr. Budget Release Posting is made by debiting bank A/c and crediting miscellaneous A/c. iii. Common case Dr. DTCO - Treasury Single Account Dr. /Cr. Revolving Fund Cr. Budget Release And when, budget release ≠ bank order iv. Salary Deductions Dr. B.E. Salary Cr. Personnel Provident Fund Cr. Personnel Loan Cr. Social Security Tax Cr. Income Tax Cr. DTCO - Treasury Single Account Postingismadebydebitingbudget expenditureA/c andcreditingmiscellaneous A/c and bank A/c with the corresponding amount. Dr. Personnel Provident Fund Dr. Personnel Loan Dr. Income Tax Dr. Social Security Tax Cr. DTCO - Treasury Single Account Posting is made by debiting miscellaneous A/c and crediting bank A/c. v. Establishment of Petty Cash Fund, Dr. Petty Cash Fund Cr. DTCO - Treasury Single Account Posting is made by debiting miscellaneous A/c and crediting bank A/c. Note: The reimbursement of petty cash fund is just like a general transaction and thus posting is made accordingly as the rule of general journal voucher.

272 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 7. Closing of Bank Cash Book A. Monthly Closing Since the operating level offices are responsible for the accountability of budget expenditure, they have to submit monthly reports/statements to their central level offices at the end of each month. The bank cash book is the principal book of account of the operating level offices and thus provides the complete information for preparing reports and statements. Thus, it should be closed at the end of each month by totalling all the amount columns separately, except the bank balance column. Then a trial balance is prepared after totalling the bank cash book in order to see the numerical correctness (accuracy) of the journal and the ledger i.e. bank cash book. The debit and credit totals of the trial balance should show the equal amount, if not, then the difference in the trial balance should be equal to the difference between advance given and cleared if any; otherwise, the books of accounts are not considered accurate. After being confident for the numerical accuracy of the bank cash book, the totals should be carried forward to the coming month. B. Annual/Yearly Closing The budget duration in the offices of Government of Nepal is for a year, and thus, it is known as budget year or fiscal year. Thus, as one of the books of account, the bank cashbook should also be closed at the end of each fiscal year. In the Nepalese government offices, the fiscal year begins from the 1st of Shrawan each year and is ended at the end of Ashadh in the next year. Every ledger of bank cash book should be closed by making closing vouchers as: Closing of cash, if any; i. Closing of Cash, Dr. DTCO - Treasury Single Account Cr. Cash ii. Closing of Petty Cash Fund Dr. DTCO - Treasury Single Account Cr. Petty Cash Fund iii. Clearance of advance (artificially) Dr. B.E ................ (budget head) Cr. Person (fake clearance of advance for budget head) iv. While closing Budget Release, Budget Expenditures and TSA. Dr. Total Budget Release Cr. Total Budget Expenditure Cr. DTCO - Treasury Single Account

273 Approved by CDC, Nepal Bank Cash Book 8. Illustrative Problems and Solutions Illustrations - 1 Enter the following transactions in the bank cash book of District Administration Office, Jhapa for the month of Magh, 2078. i. 1, opening bank balance Rs. 3,50,000. ii. 1, Rs. 500 given to Petty Cashier Mohan Lama for creating petty cash fund. iii. 7, petty cash expenses of Rs. 120 on wages, Rs. 70 on stationery and Rs. 150 for services were reimbursed. iv. 10, paid Rs. 10,000 to D R Simkhada, the President of Himalaya Youth Society, as a other social security. v. 15, paid M/S Mohan Trader for the purchase balls, board and pens of Rs. 600. vi. 18, paid Rs. 40,000 against the purchase of some furniture items for the office use. vii. 24, advance of Section Officer, Mr. Gajendra Lal Pradhan was cleared against a bill of 7,500 for production materials and 1,500 for TADA. viii. 28, paid Rs. 61,900 for the payment of the salary for the month of Magh, after deducting Rs. 14,000 as PP Fund and 1,100 as income tax. These deductions were deposited in the respective offices on the same day. ix. 29, paid Rs. 30,000 for the house rent to the landlord. Solution: AGF No. 203 Central / Province / Local level District Administration Office, Jhapa Office Code No.: .................... Journal Voucher (Expenditure / Miscellaneous) Types of Journal Voucher: Receipt/Expenditure/Deposit/Others........... Date: ................................... Budget Sub-Head No. ........................................................................ Main J.V. No. ...................... Electronic transaction No...... S.N. Code/ B.H. No. Activity/ Program Code No. Particulars L.F. No. Source Debit Rs. Credit Rs. Level Source Bearing Organization Types Payment Method 078- 10-1 Dr. Petty Cash Fund Cr. DTCO - Treasury Single Account (Being petty cash fund created under P.C. Mohan Lama for the amount) 500 500 10-7 21111 22311 Dr. B.E. Salary Dr. B.E. Stationeries and Office Goods Cr. DTCO - Treasury Single Account (Being Petty Cash Fund reimbursed) 120 220 340

274 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 10-10 27112 Dr. B.E. Other social security Cr. DTCO - Treasury Single Account (Being amount given to Himalaya Youth Society as other social security) 10,000 10,000 10-15 22311 Dr. B.E. Stationeries and Office Goods Cr. DTCO - Treasury Single Account (Being purchased for office materials) 1200 1200 10-18 31123 Dr. B.E. Furniture & Fixtures Cr. DTCO - Treasury Single Account (Being furniture purchased for office use) 40,000 40,000 10-24 22521 22612 Dr. B.E. Production Materials & Services Dr. B.E. Travelling Expenses Cr. S.O. Mr. Gajendra Lal Pradhan clearance of advance for Travelling Expenses and Production Materials & Services (Being advance cleared by S.O. Gajendra Lal Pradhan against the bills submitted by him) 7,500 1,500 9,000 a. 10-28 21111 Dr. B.E. Salary Cr. Personal Provident Fund Cr. Income Tax Cr. DTCO - Treasury Single Account (Being salary for the month of Magh paid by deducting the personnel Provident fund and income tax) 77,000 14,000 1,100 61,900 b. 10-28 Dr. Personnel Provident Fund Dr. Income Tax Cr. DTCO - Treasury Single Account (Being the above deductions deposited in the respective accounts) 14,000 1100 15,100 10-29 28142 Dr. B.E. House Rent Cr. DTCO - Treasury Single Account (Being rent paid for the month of Magh) 30,000 30,000

275 Approved by CDC, Nepal Bank Cash Book Particulars Cash Balance Bank Balance Budget Expenditure Advance of current fiscal year Advance of last fiscal year Miscellaneous Dr. Cr. Dr. Cr. Ch. No./ Electronic Transaction code Balance B. H. No. Amt. (Rs) Given Cleared Carry Forwarded Cleared Dr. Cr. 078- 10-1 i. Opening balance of bank 350000 1 ii. Creation of Petty Cash Fund 500 349500 500 7 iii. Reimbursement of petty cash expenses 340 349160 21111 22311 120 220 10 iv. Other social security given to Himalayan Youth Society 10000 339160 27112 10000 15 v. Paid for purchase of stationeries 1200 337960 22311 1200 18 vi. Paid for furniture & Fixtures 40000 297960 31123 40000 24 vii. S.O. Gajendra Lal Pradhan advance was cleared for travelling expenses and Production materials & Services 297960 22521 22612 7500 1500 (7500) (1500) 9000 28 viii. a. Salary distributed after deducting PPF and income tax 61900 236060 21111 77000 14000 1100 28 viii. b. PPF and income tax deposited into the respective accounts 15100 220960 14000 1100 29 ix. Rent paid to house holder 30000 190960 28142 30000 Total for the month of Magh - - - 159040 167540 (9000) - 9000 15600 15100 Date Voucher No. Remark Government of Nepal AGF No. 209 District Administration Office, Jhapa Bank Cash Book For the Month of Magh 2078

276 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Trial Balance of Bank Cash Book S.N. Particulars L.F. Dr. Amount Cr. Amount 1. 2. 3. 4. Bank A/c Budget Expenditure A/c Advance Expenditure A/c Miscellaneous A/c - 1,67,540 - 15,600 1,59,040 9,000 9,000 15,100 Total 1,83,140 1,92.140 The difference of Trial Balance is 9,000. And the difference of the Advance Expenditure A/c columns is also 9,000. (Cr. Excess) Illustration - 2 Prepare Bank Cash Book of District Administration Office, Gulmi from the following transactions of the month of Bhadra, 2078. 4, Bank Cash Book showed a balance at bank Rs. 21,200. 4, received bank order letter of Rs. 3,50,000 including budget release for the expenses of Shrawan of Rs. 2,25,000 and additional revolving fund of Rs. 1,25,000. 8, paid Rs. 6,000 to Mr. Shakya for official tour in advance. 11, machinery purchase advance of Rs. 45,000 to Mr. Suresh Poudel has been cleared against a bill for machinery of Rs. 43,000 and bank deposit voucher for Rs. 2,000. 14, paid the purchase of stationery of Rs. 7,200. 16, paid Rs. 6,500 for depositing the personnel fund amount deducted from the staff salary of Shrawan. 20, paid Rs. 80,000 to distribute Dashain allowance to the office staff. 30, out of total salary of Bhadra of Rs. 85,500 is distributed by deducting personnel provident fund Rs. 14,000, provident fund loan Rs. 7,000 and Rs. 1,500 for income tax. Solution: S.N. Code/ B.H. No. Activity/ Program Code No. Particulars L.F. No. Source Debit Rs. Credit Rs. Level Source Bearing Organization Types Payment Method 078- 5-4 Dr. DTCO - Treasury Single Account Cr. Revolving Fund Cr. Budget Release (Being received a bank order for the budget release and additional revolving fund) 3,50,000 1,25,000 2,25,000 5-8 22612 Dr. Mr. Shakya Advance for Travelling Expenses Cr. DTCO - Treasury Single Account (Being advance given to Mr. Shakya for official tour) 6,000 6,000

277 Approved by CDC, Nepal Bank Cash Book 5-11 31122 Dr. B.E. Machinery Equipment Dr. DTCO - Treasury Single Account Cr. Mr. Suresh Poudel clearance of advance for machinery equipment (Being advance of Mr Suresh Poudel cleared after incurring the expenditure) 43,000 2,000 45,000 5-14 22311 Dr. B.E. Stationeries and Office Goods Cr. DTCO - Treasury Single Account (Being stationery purchased) 7,200 7,200 5-16 Dr. Personnel provident fund Cr. DTCO - Treasury Single Account (Being provident fund of Shrawan deposited into the concerned account) 6,500 65,00 5-20 21111 Dr. B.E. Salary Cr. DTCO - Treasury Single Account (Being Dashain allowance provided to the office staff) 80,000 80,000 5-30 21111 Dr. B.E. Salary Cr. Personnel provident fund Cr. Personnel provident fund Loan Cr. Income Tax Cr. DTCO - Treasury Single Account (Being salary of Bhadra distributed after deducting the necessary deductions.) 85,500 14,000 7,000 1500 63,000 Total 5,80,200 5,80,200 Trial Balance Code No. Particulars L.F. Debit Credit 1 2 3 4 5 Cash A/c Bank A/c Budget Expenditure A/c Advance Expenditure A/c Miscellaneous A/c - 3,52,000 2,21,700 6,000 6,500 - 1,62,700 45,000 45,000 3,72,500 5,86,200 5,86,200 Note: i. Budget Expenditure A/c has a single column for amount, it is for debit but in case of clearance, it records the credit amount, which is kept in bracket. Thus, the total outside the bracket denotes debit total and the total of inside bracket amount denotes credit total. ii. The difference between two totals in trial balance is Rs. 39,000, which is equal to the difference in advance given and clearance.

278 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Government of Nepal AGF No. 209 District Administration Office, Gulmi Bank Cash Book For the Month of Bhadra, 2078 Date Voucher No. Particulars Cash Balance Bank Balance Budget Expenditure Advance of current fiscal year Advance of last fiscal year Miscellaneous Remark Dr. Cr. Dr. Cr. Ch. No./ Electronic Transaction code Balance (Rs) Head No. Amt. (Rs) Given Cleared Carry Forwarded Cleared Dr. Cr. 078- 5-4 i. Opening bank balance 21200 4 ii. Receipt of bank order for additional revolving fund and budget release 350000 371200 125000 225000 8 iii. Advance given to Mr. Shakya for travelling expenses 6000 365200 22612 6000 6000 11 iv. Clearance of Mr. Suresh Poudel’s machinery advance 2000 367200 31122 43000 (45000) 45000 14 v. Payment made for stationery 7200 360000 22311 7200 16 vi. PPF: of Shrawan deposited into the concerned account 6500 353500 6500 20 vii. Dashain allowance distributed 80000 273500 21111 80000 30 viii. Salary of Bhadra distributed after necessary deductions 63000 210500 21111 85500 14000 7000 1500 Total for the month of Bhadra - - 352000 162700 2,10,500 221700 (45000) 6000 45000 6500 372500

279 Approved by CDC, Nepal Bank Cash Book Exercise A. Answer the following questions in one sentence. 1. How many columns and accounts are used in Bank Cash Book? 2074 (R) 2. What is Bank Cash Book? 3. Write the AGF No. of Bank Cash Book. 2068(S) 4. Which accounts are used to keep the record of transactions of advance in Bank Cash Book? 5. Write the various types of accounts used in Bank Cash Book. 2072 (S) 6. What is monthly closing of Bank Cash Book? 7. Write the process of posting of advance clearance. 8. Why is bank cash book considered as multi-column ledger? 2073 (R) 9. Which accounts are prepared for what purpose in Bank Cash Book ? 2068 (R) 10. Write names of any two ledger accounts included in Bank Cash Book. 2066(S) B. Give short answers to the following questions. 11. Describe the various types of accounts used in Bank Cash Book. 2070 (R) 12. What is Bank Cash Book? Describe its any four point of importance in brief. 13. Write any five points to be considered while preparing Bank Cash Book. 14. Clearly mention the specimen ruling of a Bank Cash Book, AGF No. 209. 2072 (R), 2069 (S) 15. Explain the closing process of Bank Cash Book. 16. How is theposting of clearance of advancemadeunderthe following conditions? i. When the expenditure is not made and the whole amount is returned to the office. ii. When the advance amount is exactly spent on the heading. iii. When the expenditure is more than the advance amount. iv. When the advance given is more than the real expenditure. 17. Clearly mention the specimen ruling of a bank cash book, AGF No. 209. 18. What is Bank Cash Book? Mention the things to be considered while preparing it. 19. Why is bank cash book prepared? What kinds of effect are seen in accounts of bank cash book while clearing excess expenditure rather than advance amount? 2072 (R) 20. List and explain all five accounts used in bank cash book. 2067 (S) 21. The use of bank cash book in government offices is compulsory. Explain what kinds of information it provides, those accounts used in it. 2067(R) 22. Why is bank cash book prepared ? Mention its four importance. 2069(R)/2066(R) 23. Mention any two causes of preparing bank cash book in Government Office and explain cash account and advance account. 2065(S)

280 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 24. Write the name of forms which are made provision under AGF No. 209 and 208. 2065(R) 25. Which accounts are prepares for what purpose in bank cash book. 2068 (R) 26. What are the purposes of different account using bank cash book. 2068 (S) NUMERICAL PROBLEMS 1. Prepare Journal Voucher and post them into the Bank Cash Book, for the following transactions of District Administration Office, Kaski. a. On 2078-4-4, received a bank order letter of Rs. 5,00,000 as the revolving fund after deducting Rs. 500 as bank charges. b. On 2078-4-10, a total of Rs. 85,000 was advanced to Officer Shyam Sharma comprising Rs. 3,000 for TADA and Rs. 82,000 for furniture. c. On 2078-4-14, Petty Cash Fund was created after handing over a cheque no. 0080 of Rs. 500 to Cashier Krishna Sharma. d. On 2078-4-25, advance given to Officer Mr. Shyam Sharma above was cleared on basis of the bill for purchase of furniture of Rs. 75,000 and TADA bill for Rs. 3,000 produced and submitted by him along with the return of the surplus cash. The cash, so returned, was deposited in the bank on the same day. e. On 2078-4-28, out of the salary of Rs. 60,000 (exclusive of addition to provident fund) for the month of Shrawan, balance was distributed after deducting Rs. 12,000, Rs. 3,000 and Rs. 2,000 respectively for provident fund, income tax and Tejarath loan. Deducted amounts were deposited into the concerned accounts on the same day. f. On 2078-4-30, reimbursement Petty Cash Fund, for expenses made on telegram Rs. 50 and on wages of repairs Rs. 150. Ans: Bank Balance: 3,54,800 / Budget expenses Rs. 1,44,700 / Mis. Dr. 17,500 / Cr. 5,17,000 2. Prepare the Bank Cash Book, for the following transactions of District Administration Office, Kailali. a. On 2078-5-1, the bank balance as revealed by Bank Cash Book at the end of the last month was Rs. 34,500. b. On 2078-5-3, Budget release and bank order for Rs. 2,00,000 has been received as per the expenditure report of the last month. c. On 2078-5-13, paid Rs. 50,000 against purchase of computer for official use. d. On 2078-5-25, paid house rent of Rs. 5000 to house owner Mr. Shiva Sharma. e. On 2078-5-28, out of the total salary of 17,600 (inclusive of the additions to provident fund) deducted for provident fund Rs. 3,200, income tax Rs. 100, and the balance distributed. f. On 2078-5-30, the above deductions were deposited into the concerned accounts. Ans: Bank Balance: 1,61,900, B.E. Dr. 72,600 / Mis. A/c Dr. 3,300, Cr. 2,03,300

281 Approved by CDC, Nepal Bank Cash Book 3. Make posting of the following transactions into the Bank Cash Book (AGF No. 209) of District Administration Office, Chitwan for the month of Shrawan, 2079. a. On 2079/4/2, received Rs. 10,00,000 from the Office of Treasury and Account Comptroller as initial revolving fund. b. On 2079/4/6, provided Rs. 1,20,000 as advance to accountant Mr. Bal Krishna Sharma for buying motorbik. c. On 2079/4/16, amount paid to Kharidar Roshan Baniya for the establishment of petty cash fund Rs. 4,000. d. On 2079/4/17, Gandaki Pustak Pasal was paid Rs. 32,500 for copy, pen and files purchase. e. On 2079/4/19, accountant Mr. Bal Krishna Sharma submitted goods and a bill of Rs. 1,35,000 and cleared his advance. f. On 2079/4/30, reimbursed the following expenses made from the petty cash fund. Telephone Expenses Rs.260, Tea Expenses Rs. 150, Repair Rs.250 Ans: Bank Balance: 8,27,840, B.E. Dr. 1,68,160 / Mis. A/c Dr. 4,000, Cr. 10,00,000 4. Make posting of the following transactions into the Bank Cash Book (AGF No. 209) of District Administration Office, Kathmandu for the month of Shrawan, 2078. a. On 2078/4/2, received 1/6 of the previous year’s total expenditure of Rs. 36,00,000 from the Office of Treasury and Account Comptroller as imprest fund. b. On 2078/4/5, provided Rs. 20,000 as advance to store keeper Mr. Krishna Hamal for buying computer for office use. c. On 2078/4/12, paid Rs. 15,000 for telephone charge. d. On 2078/4/15, paid Rs. 5,000 for stationery. e. On 2078/4/16, store keeper Mr. Krishna Hamal submitted a bill of Rs. 15,000 and a bank voucher of Rs. 5,000 for clearance of computer advance. f. On 2078/4/24, paid salary Rs. 50,000 to the staff. Ans: Bank Balance: 5,15,000, B.E. Dr. 85,000 / Mis. A/c Cr. 6,00,000 5. Make the posting of the following transactions into the Bank Cash Book (AGF No. 209) of District Administration Office, Palpa for the month of Bhadra, 2078. a. On 2078/05/01, bank balance Rs. 1,50,000. b. On 2078/5/2, received a bank order of Rs. 3,50,000 and budget release order of Rs. 2,55,000 for the actual expenditure of last month from the Office of Treasury and Comptroller. c. On 2078/5/5, Rs. 30,500 paid in advance to accountant Mr. Bhola Neupane for the purchase of chair, table and rack. d. On 2078/5/6, out of total staff salaries of Rs. 88,000 for the month of Shrawan, Rs. 8,000 was deducted for Personnel Provident Fund, Rs.2,000 for Citizen Investment Fund and Rs. 500 for Income tax and the balance was distributed.

282 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal e. On 2078/5/14, accountant Mr. Bhola Neupane submitted the goods and a bill of Rs. 30,500 for clearance of advance. f. On 2078/5/28, paid house rent for the month of Shrawan & Bhadra @ Rs. 5,000 per month to the house owner Nirmala Khanal. Ans: Bank Balance: 3,82,000 B.E. Dr. 1,28,500 / Mis. A/c Cr. 3,60,500 6. Make posting of the following transactions into the Bank Cash Book (AGF No. 209) of District Administration Office, Kathmandu for the month of Ashwin, 2078. a. On 2078/6/1, at the end of Bhadra, bank cash book showed debit balance Rs. 10,50,000 and credit balance Rs. 6,40,000. b. On 2078/6/5, Rs. 3,000 was given to store keeper Mr. Arjun Baruwal as an advance for travelling expenses. c. On 2078/6/16, paid Rs. 5,000 for fuel for vehicle and Rs. 10,000 for dress to the peon. d. On 2078/6/18, paid Rs.15,000 for office materials. e. On 2078/6/21, store keeper Mr. Arjun Baruwal submitted a bill of Rs. 2,000 and cash Rs. 1,000 for clearance of travelling expenses and advance was cleared. f. On 2078/6/30, paid Rs. 27,000 as the salaries for the month of Ashwin after deducting provident fund Rs. 12,000, income tax Rs. 2,000 and salary advance of Yubraj Lamsal Rs. 3,000. Ans: Bank Balance: 3,50,000, Cash A/c Dr. 1,000 / B.E. Dr. 76,000, Mis. A/c Cr. 17,000 7. Prepare Bank Cash Book for the month of Shrawan on the basis of the following information. a. An intimation was received from the Treasury and Comptroller’s Office that Rs. 3,50,000 was deposited in the office’s bank account as preliminary revolving fund on 3-4-2078. b. Paid to Padma Machineries and Tools for Rs. 30,000 for a computer purchased for office use on 8-4-2078. c. Paid Rs. 1,000 to Petty Cashier, Lekhanath Dahal for the creation of Petty Cash Fund on 15-4-2078. d. An advance for furniture of Rs. 25,000 was given to Nayab Subba Narayan Kafle, on 22-4-2078. e. Paid for the purchase of a piece of land for the office Rs. 70,000 on 25-4-2078. f. Telephone expenses of Rs. 2,500 for the month was paid by cheque on 31-4-2078. g. Out of the total salary of Rs. 44,000 (including PPF addition) and allowance of Rs. 3,000 for the month of Shrawan, balance was distributed. h. On 31-4-2078 after deducting PPF Rs. 8,000, income tax of Rs. 1,000 and provident fund loan of Rs. 3,000. i. The deductions were deposited into the respective offices on the same day. Ans: Bank Balance: Rs. 1,74,500, Budget Expenditure Dr. 1,74,500, Miscellaneous Dr. Rs. 13,000, Cr. Rs. 3,62,000

283 Approved by CDC, Nepal Bank Cash Book 8. Post the following transactions into the Bank Cash Book for the month of Bhadra 2078. a. The bank balance was revealed by the Bank Cash Book at the end of last month was Rs. 45,000 on 2078-1-2. b. Paid Rs. 25,000 against the purchase of typewriters for office use on 2078-1-3. c. Budget release order and bank order for Rs. 200,000 has been received as per the expenditure report of the last month on 2078-1-8. d. Expenditures for stationery Rs. 50, newspaper Rs. 25, refreshment Rs. 20 and registration Rs. 15 were made by Petty Cashier Mr. L. Subedi on 2078-1-10. e. Paid office rent Rs. 5,000 to the house owner Mr. Pashupati Gupta on 2078-1-25. f. After deducting Rs. 4,000 as provident fund and Rs. 2,000 as citizen investment fund the balance of Rs. 16000 was paid to the staff as salary for the month on 2078-1-30. The deductions were deposited into the respective accounts on the same day. Note: Expenses made through petty cash fund are not posted in bank cash book. Ans: Bank Balance: Rs. 1,93,000, Budget Expenditure Dr. Rs. 52,000 Miscellaneous Dr. Rs. 6,000, Cr. Rs. 2,06,000 9. The following is the trial balance of District Administration Office, Sunsari as on 30th Poush, 2078. SN Accounts Dr. Total Cr. Total 1. 2. 3. 4. 5. Cash A/c Bank A/c Budget Expenditure A/c Advance Expenditure A/c Miscellaneous 40,000 6,00,000 475000 50,000 25,000 40,000 5,00,000 - 30,000 6,00,000 Total 11,90,000 11,70,000 The following transactions were held during the month of Magh, 2078. a. Payment made for the expenses of training to the office staff of Rs. 5,000 on 2078-10-5. b. An intimation of bank order has been received for Rs. 1,25,000 for the expenditure made during the month of Poush on 2078-10-7. c. Office rent of the months of Magh, Falgun and Chaitra paid by cheque @ Rs. 8,000 per month on 2078-10-16. d. Salary paid to the staff Rs. 30,000 after deducting Rs. 2,000 for provident fund, and Rs. 2,000 for citizen investment fund on 2078-10-28.

284 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal e. The deductions were deposited into the respective offices by separate cheques on 2078-10-29. f. Two cheques of Rs. 2,000 and Rs. 1,000 for telephone charges and water charges respectively were issued to the concerned authorities on 2078-10-30. Required: Bank Cash Book for the month of Magh, 2078. Ans: Bank Balance: Rs. 1,63,000, Budget Expenditure Rs. 5,37,000, Advance given Rs. 74,000 and cleared Rs. 30,000, Miscellaneous Dr. Rs. 29,000 and Cr. 7,29,000 10. From the following information, prepare a bank cash book. a. The balance as shown by the bank cash book till Jestha, 2078 were as follows. Bank Dr. 1,00,000 Cr. 40,500. b. Received bank order letter of Rs. 2,50,000 being expenditure of last month as initial revolving fund. c. Issued a cheque of Rs. 1,000 to Kabir for salary advance. d. Purchased an office typewriter worth Rs. 4,000. e. The salary of Rs. 30,500 for the month of Ashard paid by cheque no. 1004 with the following deductions. Deductions are deposited into concern account on the same day. Provident Fund deduction 3,600 Income tax 150 Salary advance of Kabir 1,000 f. A cheque of Rs. 15,000 as an advance salary was issued to Section Officer Ramesh Thapa through cheque no. 1006. Ans: Bank Balance: Rs. 2,63,750, Budget Expenditure Dr. 49,500, Advance A/c given, 16,000, Clearance Rs. 1,000, Miscellaneous Cr. Rs. 2,53,750 11. Post the following transactions into Bank Cash Book. Shrawan-2, balance at bank Rs. 1,44,000. Shrawan-5 received budget release order and bank order for Rs. 90,000. Shrawan-10, paid advance office rent of Rs. 6,000. Shrawan-29, paid salary for the month of Shrawan Rs. 59,400 after deducting Provident Fund of Rs. 13,200. Shrawan-31 Mr. Thapa submitted the furniture purchased bill for Rs. 25,000 against the advance of Rs. 20,000 for the same and cleared his account. Shrawan-31 paid Rs. 25,000 for purchase of a computing machine. Ans: Bank Balance: Rs. 1,51,800, Budget Expenditure Dr. 95,400, Advance given Rs. 6,000, Clearance Rs. 20,000, Miscellaneous Cr. Rs.1,03,200

285 Approved by CDC, Nepal Budget Sheet Unit 10 Budget Sheet CDC Syllabus 10.1 Introduction, accounts incorporated in it and use/practice 7 Periods Budget Formation process Estimation of total expenditure Authorization and implementation Priority establishment Discussion Preparation and selection of new projects Proposal of new taxes Final document Feedback After studying this unit, students will be able to : know the meaning, objectives, importance and parts of budget sheet, know the considerations of preparing budget sheet, know the monthly and yearly closing of budget sheet, prepare budget sheet. Learning Objectives Nepal Government AGF No. 208 District Police Office, Bardiya Office Code No.: .................... Budget Sheet For the month of Poush, 2078 Financial code of Expenditure Heads Name of Programme 1st Part Budget Budget Sub head number 21111 21131 22111 28142 22211 22311 31123 31121 Sub-budget head Salary Local Allowance Water & Elec. House Rent Fuel Stationeries and Office Goods Furniture & Fixtures Machinery equipment Appropriation of approved budget for fiscal year 125000 5000 15000 30000 6000 18000 9000 30000 Appropriator of approved additional budget for fiscal year Change due to budget transfer Change due to internal source Total budget available for the current fiscal year 238000 125000 5000 15000 30000 6000 18000 9000 30000 2nd Part Date Voucher No. Code No. Particulars Total Release 078-9-1 Budget released up to Kartik 76200 45000 1200 5000 15000 2000 4000 4000 - 9-3 Budget release for the month of Marga 24000 10500 350 1000 4000 500 2000 - 5650 Total budget release upto Poush 122200 55500 1550 6000 19000 2500 6000 4000 5650 3rd Part Expenditure 9-10 Clearance of to materials advance of SO Mr. Dahal 5000 (4800) - - - - - 5000 (4800) - - 9-18 Machinery purchased 22000 22000 Total expenditure for the month of poush 25200 - - 3000 - 200 - 22,000 Total expenditure till the month of Marga 100200 55500 1550 6000 19000 2500 6000 4,000 5650 Total expenditure till the end of Poush 125400 55500 1550 6000 22000 2500 6200 4000 27650 Budget Balance 112600 69500 3450 9000 8000 3500 11800 5000 2350

286 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 1. Introduction BudgetSheetisoneofthe importantbooksof accountmaintainedbyeachGovernment office under New Accounting System in Nepal. The main purpose of the New Accounting System is to confine the government expenditures within the budgetary limit. For the attainment of this purpose, information regarding annual appropriation, budget release and expenditures to date related with each budget head is a must. Thus, a general ledger on which the budget head is prepared by each office to see the total expenditure and the condition of budget on each head for its effective control is known as budget sheet. It is prepared in the form of statement by mentioning the annual appropriation, budget release and the regular expenditures on each head and sub-head respectively. Thus, a budget sheet may be defined as a budget ledger maintained by containing all heads of budget expenditure in a columnar form to provide the necessary details regarding annual appropriation, regular and additional budget releases and the regular expenditure on each head of budget under operating level accounting so as to make effective control over the budget of the government. It is maintained in the form, prescribed under AGF No. 208. It has main three parts. It is prepared with the help of journal vouchers. Key Point Budget sheet is a budget ledger prepared in the form of statement by mentioning the annual appropriation, budget release and the regular expenditure on each head and sub-head respectively. 2. Objectives of Budget Sheet Budget Sheet, also, termed as budget ledger, is a main subsidiary book of operating level offices, maintained to achieve an effective budgetary control. It is very important for the operating level office. Objectives of budget sheet are given below. i. To avail information about the annual appropriation of budget in total and under each budget head and sub-head so, as to confine the expenditure within the budgetary limit. ii. To provide information about the budget releases and the expenditures upto date under each head and sub-head. iii. To provide information about the surplus and shortage of budget amount under different heads and sub-heads so as to manage it by budget transfer or sometimes by getting additional or supplementary budget release. iv. To give information about the condition of budget on each head of expenditure at the close of each month and in this way, at the last of each fiscal year to have effective control over the budget expenditure. v. To provide necessary financial information for the preparation of statement and reports. vi. To control the misappropriation of the public funds. vii. To provide data about the balance of budget under each budget heads.

287 Approved by CDC, Nepal Budget Sheet 3. Importance of Budget Sheet The major importance of budget sheet are as follows: 1. It gives detailed information about annual appropriation of budget under different budget heads and sub heads. 2. It gives information about budget release upto the month in different budget heads. 3. It provides the information of budget expenditure under budget heads upto the month. 4. It controls the manipulation of public fund. 5. It helps to make financial plans, policies and decisions by providing the actual information. 6. It facilitates for internal as well as external audits. 7. It controls the budget expenditure because it does not allow for making expenditures beyond the limitations of budget. 8. It helps to find out the balance of budget under each heads and sub-heads at the end of each months. 4. Specimen of Budget Sheet The specimen of Budget Sheet, AGF No. 208. is given in the end of this chapter. Central / Province / Local level AGF No. 208 ....................... Ministry / Department / Office Office Code No.: .................... Budget Sheet For the month of .................. , year .................... Financial Code of Expenditure / Heads Name of Programme First Part Budget Budget Sub head number Sub-budget head Appropriation of approved budget for fiscal year Appropriator of approved additional budget for fiscal year Change due to budget transfer Change due to internal source Total budget available ............................................................................ Second Part Date Voucher No. Code No. Particulars Total Release Budget Release upto previous month Budget release for the month Additional budget release Total budget release upto ............................................................................ Third Part Expenditure Expenses upto the previous month Expenses of the month Total expenditure upto ............................................................................ Budget Balance

288 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 5. Parts of Budget Sheet Budget Sheet, AGF No. 208 has the following three parts: i. Annual Appropriation of Budget Section ii. Budget Release Section iii. Budget Expenditure Section i. Annual Appropriation of Budget Section It is the first part of budget sheet. The total amount of budget approved for a fiscal year and their allocation under the different heads and sub-heads are shown here. Supplementary budget release, inter-office and inter-head budget transfer, if any, are also recorded in this part. To cross the limit and transfer the annual budget from one heads to another, permission should be taken from the central level office or concerned office. While transferthe budget, amount being transferred from one head is shown inside a bracket and the same amount is recorded outside the bracket in the related head and sub-head. If supplementary budget is received, amount should be written in concerned heads and sub-heads. This part provides information about the allocation of budget or maximum limit of amount of expenditures under each head and sub-head for a fiscal year and also in total for the office. The total annual appropriation is equal to the total of the annual appropriation under each head. Journal Voucher is not prepared for the annual appropriation of budget. ii. Budget Release Section It is the second part of budget sheet. Under it the amount of budget release received as per the payment order made by District Treasury Controller Office (DTCO) based on budget expenditure is to be recorded. The budget release amount should be equal to the budget expenditure amount. In this section the amount of advance given to office staff or other parties is also recorded as budget release. When the advance of office staff and other parties is cleared than the budget release is not to be recorded for the advance amount however excess or surplus amount over the advance should be recorded as budget release as per the payment order of DTCO or deposit slip on TSA. Sometime operating level office receive the assets from central level office and recorded as budget release. If it does show the amount assets is to be recorded as budget release in this section. iii. Budget Expenditure Section This is the third and the last part of budget sheet. It is budget expenditure section which includes all the budget expenditure incurred for different budget heads and sub-heads during the period are recorded as per payment order of District Treasury Controller Office (DTCO). The financial transaction that are not related to budget expenditure are not to be shown in this section. However, the amount of advance given to office staff and other parties is to be recorded as budget expenditure and shown in this section. When the advance of office staff and other parties is to be cleared, the amount of advance should be written in the column of budget expenditure inside the bracket.

289 Approved by CDC, Nepal Budget Sheet 6. Guidelines /Procedures of Preparing Budget Sheet i. Annual allocation of budget, supplementary budget, inter-head transfer of budget and inter-office transfer of budgetis posted into the annual appropriation section. ii. Inter-head transfer and inter-office transfer of budget are recorded showing inside the bracket. From the budget heads and sub-head amount can be transferred and amount to be added in the budget head transferred. iii. Supplementary and additional budget is also recorded in annual appropriation part. iv. Initial revolving fund and additional revolving fund are recorded in the total column of budget release part only. v. The amount of budget release is recorded in the concerned heads and subheads. vi. The expenses are recorded under the concerned budget heads and sub-heads in the expenditure part. vii. The transactions about the advance given is not actual expenditure; yet it is recorded in head until and unless it is cleared. viii. The case of advance clearance, the actual expenditure is to be shown outside the bracket and amount of advance given is written inside the bracket in concerned budget head. ix. While establishment of petty cash fund, it is not recorded in budget sheet, but in the reimbursement of expenditure it is to be recorded in concerned budget heads and sub heads. x. At the end of the month, the expenditures are added with the total of current and the total expenditure upto the last month to find out the total expenditure upto the current month. xi. Miscellaneous transactions like income tax, social security tax, provident fund, inter office loan and citizen investment fund, etc. are not to be record in budget sheet. 7. Closing of Budget Sheet Each operating level office is responsible towards the central level office forincurring the expenditure of the budget release it receives in terms of advance. So, each operating level office presents the report and statements to the central level office at the end of each month for clearing advance budget. For this, all the books of accounts are closed at the end of each month. Finally, it should be closed at the end of each fiscal year. i. Monthly Closing Budget sheet should be closed at the end of the every month is known as monthly closing. In every monthly closing the amount of released section for each budget head and sub heads are totaled to find out the monthly released and added to the total of previous month to find out the total budget released upto the current month. Similarly, in the budgeted section all the amount of each budget head and sub-heads

290 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal are totaled to find out the total expenditure for the current month and amount of current month is added with total expenditure of previous month to find out the total expenditure upto the current month. ii. Annual /Yearly Closing Budget Sheet is necessary to be closed at the end of each fiscal year in order to find out position of budget after deducting the total annual expenditure from the total of the budget releases during each fiscal year on each and every budget head. The total amounts of each column under budget release and budget expenditure are put in brackets so as to neutralise the release and expenditure. At the bottom of the budget sheet, the surplus of budget on each head is calculated by deducting the total of expenditures from that of the release. The surplus is either transferred to the coming year or frozen or deposited into the Consolidated Fund by making the closing vouchers. Key Point As all the accounts are closed at the end of the fiscal year, budget sheet is also should be closed which is known as the yearly closing of budget sheet. 8. Illustrative Problems and Solutions Illustration - 1 Prepare Budget Sheet, AGF No. 208, for the month of Shrawan, 2078 for the following transactions of the District Administration Office, Palpa. 5, Received budget release order from DTCO of RS. 4,00,000. 8, Paid Rs. 500 for the creation of Petty Cash Fund under the responsibility of Mr. Dhanapati, the Petty Cashier of the office to facilitate petty payments. 12, Paid Rs. 5,000 to Progressive Book and Stationery against the purchase of stationery items like files, papers, pen and ink, etc, for office use. 17, TA/DA advance of Rs. 5,000 was given to Section Officer, Ramji Sharma for an official tour to Nepalgunj. 20, Paid Rs. 50,000 against a purchase of motorcycle for office use. 23, Paid Rs. 20,000 to Nayab Subba, Baburam Karki as advance for purchasing office furniture. 25, On the basis of the TA/DA bill for Rs. 6,000 presented by Section Officer Ramji Sharma on his return from Nepalgunj, clearance was given with necessary reimbursement. 28, Out of the salary of Rs.1,40,000 (exclusive of additions to provident fund Rs. 10,000) and allowance of Rs. 4,000 for the month of Shrawan, the balance is paidafterdeductingRs.20,000asprovidentfund,Rs.10,000aspersonnelloanand Rs. 2,000 for income tax. 30, The information relating to the following annual appropriation and additional budget release of Rs.1,00,000 was received as the Annual Appropriation bill has been passed.

291 Approved by CDC, Nepal Budget Sheet Budget Head No. Budget Head Annual Appropriation Approved 21111 21131 22111 22112 28142 22211 22311 22612 31123 31121 Employee remuneration (Salary) Local Allowance Water and Electricity Communication charge House Rent Fuel Stationeries and Office Goods Travelling Expenses Furniture & fixtures Vehicle 20,00,000 50,000 50,000 50,000 1,00,000 25,000 1,25,000 1,50,000 1,50,000 3,00,000 Total 30,00,000 Solution: AGF No. 203 Central / Province / Local level District Administration Office, Palpa Office Code No.: .................... Journal Voucher (Expenditure / Miscellaneous) Types of Journal Voucher: Receipt/Expenditure/Deposit/Others........... Date: ................................... Budget Sub-Head No. ........................................................................ Main J.V. No. ...................... Electronic transaction No...... S.N. Code/ B.H. No. Activity/ Program Code No. Particulars L.F. No. Source Debit Rs. Credit Rs. Level Source Bearing Organization Types Payment Method Dr. DTCO - Treasury Single Account Cr. Budget Release (Being budget release received through DTCO) 4,00,000 4,00,000 Dr. Petty Cash Fund Cr. DTCO - Treasury Single Account (Being Petty Cash Fund created under the responsibility of Mr. Dhanapati, the Petty Cashier) 500 500 22311 Dr. B.E. Stationeries and Office Goods Cr. DTCO - Treasury Single Account (Being paid for file, paper, pen and ink, etc.) 5,000 5,000

292 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal iture i22612 Dr. S.O. Ramji Sharma Advance for Travelling Expenses Cr. DTCO - Treasury Single Account (Being amount given to Ramji Sharma as advance for an official tour to Nepalgunj) 5,000 5,000 31121 Dr. B.E. Vehicle Cr. DTCO - Treasury Single Account (Being paid for motor-cycle purchase for office use) 50,000 50,000 31123 Dr. N.S. Baburam Karki Advance for Furniture & fixtures Cr. DTCO - Treasury Single Account (Being furniture advance given to N.S. Mr. Karki) 20,000 20,000 22612 Dr. B.E. Travelling Expenses Cr. S.O. Ramji Sharma Clearance of advance for Travelling expenses Cr. DTCO - Treasury Single Account (Being clearance given to S.O. Ramji Sharma on TADA with necessary reimbursement) 6,000 5,000 1,000 21111 21131 Dr. B.E. Employee remuneration Dr. BE Local Allowance Cr. Personnel Provident Fund Cr. Personnel Loan Cr. Income Tax Cr. DTCO - Treasury Single Account (Being salary distributed for the month of Shrawan after necessary deductions) 1,50,000 4,000 20,000 10,000 2,000 1,22,000 Dr. DTCO - Treasury Single Account Cr. Additional Budget Release (Being additional budget release received as the annual appropriation bill is passed) 1,00,000 1,00,000 Total 7,36,500 7,36,500

293 Approved by CDC, Nepal Budget Sheet Nepal Government AGF No. 208 District Administration Office, Palpa Office Code No.: .................... Budget Sheet For the month of Shrawn , 2079 Financial code of Expenditure Heads Name of Programme First Part Budget Budget Sub head number 21111 21131 22111 22112 28142 22211 22311 22612 31123 31121 Sub-budget heads Salary Local Allowance Water & Electricity Communication Charges House Rent Fuel Stationeries and Office Goods Travelling Expenses Furniture & Fixtures Vehicle Annual appropriation of approved budget for the fiscal year 20,00,000 50,000 50,000 50,000 1,00,000 25,000 1,25,000 150000 1,50,000 3,00,000 Appropriator of approved additional budget for the fiscal year Change due to budget transfer Change due to internal source Total budget available for the current fiscal year 30,00,000 20,00,000 50,000 50,000 50,000 1,00,000 25,000 1,25,000 150000 1,50,000 3,00,000 Second Part Date Voucher No. Code No. Particulars Total Release 2079 4-5 4-30 Total release for the month of Shrawan Additional Budget Release Received 4,00,000 1,00,000 Total budget release for Shrawan 5,00,000 Third Part Expenditure Expenses upto the previous month 4-12 4-17 4-20 4-23 4-28 4-31 Payment against purchase of stationeries, files, paper, pen ink, etc. Travelling Expenses advance given to SO Ramji Sharma Paid for purchase of motorcycle for office use Advance given to Nayab Subba Babu Ram Karki for furniture & Fixtures Clearance of TADA advance of SO Ramji Sharma Distribution of salary and allowance of Shrawan a per the pay roll 5,000 5,000 50,000 20,000 6,000 (5,000) 1,54,000 1,50,000 4,000 5,000 5000 6,000 (5,000) 20,000 50,000 Total expenses of the month 2,35,000 1,50,000 4,000 5,000 6,000 20,000 50,000 Total expenditure upto the month of Shrawan 2,35,000 1,50,000 4,000 5,000 6,000 20,000 50,000 Budget Balance 27,65,000 18,50,000 46,000 50,000 50,000 1,00,000 25,000 1,20,000 1,44,000 1,30,000 2,50,000 Note: - Preliminary and additional budget releases are posted only in the total column. - Creation of Petty Cash Fund is not posted in Budget Sheet because it is not related to budget expenditure heads but the expenses incurred from the fund are posted either on the basis of cash payment slip or in case of reimbursement.

294 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Illustration - 2 Post the following transactions into Budget Sheet of District Police Office, Bardiya. Budget heads Annual Budget (Rs) Expenses of Marga (Rs.) Expenses upto Kartik (Rs.) Salary Local Allowance Water and Electricity Stationeries and Office Goods House Rent Fuel Furniture & Fixtures Machinery and Equipments 125000 5000 15000 18000 30000 6000 9000 30000 10500 350 1000 2000 4000 500 - 5650 45000 1200 5000 4000 15000 2000 4000 - 2078 Poush 3, received budget release order and bank order for the actual expenditure of Marga. 2078 Poush 10, an advance for other materials of Rs. 4,800 of S.O. Mr. Dahal has been cleared after receiving bills for the same Rs. 5,000. 2078 Poush 18, budget release from DTCO of Rs. 22,000 for purchasing machinery has been received 2078 Poush 25, paid office rent by cheque for the month of Poush and Magh @ Rs. 1500p.m. Nepal Government AGF No. 208 District Police Office, Bardiya Office Code No.: .................... Budget Sheet For the month of Poush, 2078 Financial code of Expenditure Heads Name of Programme 1st Part Budget Budget Sub head number 21111 21131 22111 28142 22211 22311 31123 31121 Sub-budget head Salary Local Allowance Water & Elec. House Rent Fuel Stationeries and Office Goods Furniture & Fixtures Machinery & Equipment Appropriation of approved budget for fiscal year 125000 5000 15000 30000 6000 18000 9000 30000 Appropriator of approved additional budget for fiscal year Change due to budget transfer Change due to internal source Total budget available for the current fiscal year 238000 125000 5000 15000 30000 6000 18000 9000 30000 2nd Part Date Voucher No. Code No. Particulars Total Release 078-9-1 Budget released up to Kartik 76200 45000 1200 5000 15000 2000 4000 4000 - 9-3 Budget release for the month of Marga 24000 10500 350 1000 4000 500 2000 - 5650 9-18 Additional budget release received for purchasing the machinery 22000 Total budget release upto Poush 122200 55500 1550 6000 19000 2500 6000 4000 5650

295 Approved by CDC, Nepal Budget Sheet 3rd Part Expenditure 9-10 Clearance of to materials advance of SO Mr. Dahal 5000 (4800) - - - - - 5000 (4800) - - 9-18 Machinery purchased 22000 22000 9-25 Paid of house rent of poush and advance rent of Magh 3000 3000 Total expenditure for the month of poush 25200 - - 3000 - 200 - 22,000 Total expenditure till the month of Marga 100200 55500 1550 6000 19000 2500 6000 4,000 5650 Total expenditure till the end of Poush 125400 55500 1550 6000 22000 2500 6200 4000 27650 Budget Balance 112600 69500 3450 9000 8000 3500 11800 5000 2350 Illustration - 3 Based on the following information regarding annual appropriation and position of expenditure, prepare Budget Sheet of Custom Office, Biratnagar for the month of Mangsir, 2078. Budget heads Annual Appropriation (Rs.) Expenditure upto the end of Kartik (Rs.) Salary Local Allowance Water and Electricity Other Rent Repairs and Maintenance Stationeries and Office Goods Production Materials and Services Travelling Expenses Purchase of Land Furniture and Fixtures Vehicle Machinery Equipments Building Construction Contingency Expenses 360,000 60,000 24,000 4,500 12,000 60,000 30,000 48,000 45,000 60,000 90,000 1,90,000 3,00,000 12,000 1,20,000 20,000 8,000 1,500 4,000 20,000 10,000 16,000 15,000 20,000 30,000 90,000 1,00,000 4,000 Mangsir 4, paid Rs. 10,000 to Purnima Stationery for purchase of books, pens and copies. Mangsir 10, paid Rs. 2,000 to electricity authority as electricity charges. Mangsir 18, expenses of Rs. 5,000 for wages and Rs. 10,000 for materials were paid for the construction of office building. Mangsir 20, an advance of Rs. 52,000 being Rs. 50,000 for machinery and Rs. 2,000 for TADA was paid to S.O. Mr. Upadhyaya. Mangsir 29, the bills ofRs. 65,000 of machinery withRs. 5,000 transportation charge for the same and Rs. 2,000 for TADA produced by Mr. Upadhyaya and clearance was given to him with necessary reimbursement.

296 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Nepal Government AGF No. 208 Custom Office, Biratnagar Office Code No.: .................... Budget Sheet For the month of Marga, 2078 Financial code of Expenditure Heads Name of Programme 1st Part Budget Budget Sub head number 21111 21131 22111 22231 22311 22521 22612 28149 28911 31411 31123 31121 31122 31111 Sub-budget heads Salary Local Allow- ance Water & Elec. Main- tenance of Constructed Public Property Station- eries & Office Goods Production Materials & Services Travelling Expenses Other Rent Contin- gency Expenses Purchase of Land Furniture & Fixtures Vehicle Machinery Equipment Building Cons- truction Annual appropriation of approved budget for the fiscal year 360000 60000 24000 12000 60000 30000 48000 4500 12000 45000 60000 90000 190000 300000 Appropriator of approved additional budget for the fiscal year Change due to budget transfer Change due to internal source Total budget available for the current fiscal year 1295500 360000 60000 24000 12000 60000 30000 48000 4500 12000 45000 60000 90000 190000 300000 2nd Part Date V. No. Code No. Particulars Total Release Release for the month of Marga 458500 120000 20000 8000 4000 20000 10000 16000 1500 4000 15000 20000 30000 90000 100000 Total budget release for Marga 458500 120000 20000 8000 4000 20000 10000 16000 1500 4000 15000 20000 30000 90000 100000 3rd Part Expenditure 078 8-4 8-10 8-18 8-20 8-29 Paid to Purnima Stationery for books, pens and copies Payment of electricity changes Payment for wages and materials for building construction Advance given to Mr. Upadhyaya for machinery and TADA Clearance of advance of Mr. Upadhyaya 10000 2000 15000 52000 72000 (52000) 2000 10000 2000 2000 (2000) 50000 70000 (50000) 15000 Total expenses of the month 99000 2000 10000 2,000 70000 15000 Total expenditure upto the month of Marga 557500 120000 20000 10000 4000 30000 10000 18000 1500 4000 15000 20000 30000 160000 115000 Budget Balance 708000 240000 40000 14000 8000 30000 20000 30000 3000 8000 30000 40000 60000 30000 185000

297 Approved by CDC, Nepal Budget Sheet Glossary Appropriation : distribution Reimbursement : to pay back Budget release section : part of budget sheet that show account of budget heads Beyond the limit : away from the limit Clearance of advance : advance, cleared Estimation of budget : forecasting the budget Transfer of budget : transfer of budget from surplus head to deficit head Exercise A. Answer the following questions in one sentence. 1. What is budget sheet? 2068(R) 2. What is budget release part? 3. What is annual appropriation part of budget sheet? 4. What is AGF No. of budget sheet? 2070(S), 2069 5. Which is the second part of budget sheet? 6. What is the last part of budget sheet? 7. How many parts are divided of budget sheet ? 2066(R) 8. Write the name of any two parts of Budget sheet. 2071 (R), 2065(S) 9. What is budget transfer? 2068(R) 10. In which part of budge sheet is the additional revolving fund release recorded? 2073(S) 11. In which part of budget sheet does record the interhead transfer? 2072(R) B. Give short answers to the following questions. 12. Introduce budget sheet and write any four considerations of preparing budget sheet. 2073(S) 13. Introduce budget sheet and explain any four point of importance of budget sheet. 14. What is a budget sheet, AGF No. 208? Why it is prepared? 15. What are the different parts of a budget sheet? Introduce shortly about each of them. 2074(R), 2072(S) 16. Introduce Budget Sheet and mention the transactions included in the annual appropriation and budget release part of it. 2066(S) 17. What is budget Sheet ? Mentions any four methods of Budget Sheet. 2065(R) 18. Why is budget sheet prepared? What are the informations provided by its three parts? 2071(S)

298 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal NUMERICAL PROBLEMS 19. Prepare Journal Voucher and Budget Sheet of the following transactions which were appeared in the book of District Administration Office, Bhaktapur. a. On 2078-4-3, Rs. 6,00,000 has been received from the District Office of the Treasury and Comptroller as budget release. b. On 2078-4-7, Rs. 12,000 was given to Khardar Pramod Gurung as advance for purchasing books and directories. c. On 2078-4-12, issued a cheque of Rs. 10,000 against the purchase of uniform to the security guard and office drivers. d. On 2078-4-16, issued a cheque of Rs. 500 to Sanu Thapa, the Assistant Cashier for the creation of Petty Cash Fund. e. On 2078-4-20, an advance of Rs. 20,000 was given to the Accountant Ramesh Shah for purchasing office furniture. f. On 2078-4-21, the basis of the bill of Rs. 10,000 for the books and directories purchased for the office along with the bank receipt of surplus money, the clearance was given to Khardar Pramod Gurung. g. On 2078-4-28, out of the total Salary of Rs. 33,000 for the month, as per the payroll, balance was distributed through cheque deducting Rs. 6,000 for provident fund, Rs. 1,500 for tejarath loan and Rs. 500 of income tax. The deducted amounts were deposited into the respective accounts on the next day. h. On 2078-4-31, the notice regarding the following appropriation, approved for the current fiscal year, was received: Budget Head No. Budget Head Annual Appropriation Approved 21111 21131 21121 22111 22112 22211 22311 22313 22612 31123 31121 Salary Local Allowance Uniform / Dresses Water and Electricity Communication Charges Fuel Stationeries and Office Goods Books & Materials Expenses Travelling Expenses Furniture & Fixtures Vehicle 4,45,000 12,000 30,000 18,000 30,000 5,000 40,000 90,000 20,000 60,000 1,50,000 Total: 9,00,000 Hints: The deductions from the salary are not posted in the budget sheet as they are not related to any head of expenditure, but they are already included in 21111 salary while posting the gross total amount in salary.

299 Approved by CDC, Nepal Budget Sheet 20. The following information and transactions are given of District Administration Office, Kaski. Budget Head No. Budget Heads Annual Appropriation (Rs.) Expenditure of Shrawan (Rs.) 21111 21131 22213 22521 28911 31121 Salary Local Allowance Repairs and Maintenance Production Materials & Services Contingencies Expenses Vehicle 8,52,000 36,000 24,000 60,000 60,000 70,000 66,000 6,000 2,000 10,000 5,000 15,000 a. Bhadra-5, received bank order of Rs. 80,000 and budget release order for the expenditure of the last month. b. Bhadra-10, purchased raw materials for production of Rs. 4,000. c. Bhadra-20, paid Rs. 6,000 for bicycle for office use. d. Bhadra-30, paid salary of Rs. 54,000 and allowance of Rs. 6,000 after deducting staff provident fund Rs. 12,000. Required: Post the transactions into Budget Sheet. Hints: a. Dr. DTCO - Treasury Single Account 80,000 Dr. Revolving fund 24,000 Cr. Budget Release 1,04,000 d. Dr. B.E. Salary 21111 66,000 Dr. B.E. Local Allowance 21131 6,000 Cr. Personal Provident Fund 12,000 Cr. DTCO - Treasury Single Account 60,000 21. Prepare the Budget Sheet of District Administration Office, Bhojpur from the information and transactions given below. B.H, No. Budget heads/Sub heads Annual Budget Rs. Expenses of Sharawan 21111 22211 22311 22522 31411 31123 Salary Fuel Stationeries and Office Goods Program expenditure Purchase of land Furniture & Fixtures 2,60,000 40,000 25,000 1,60,000 5,20,000 25,000 30,000 2,000 5,000 40,000 0 5,000 Total 10,30,000 82,000

300 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Additional Information : a. On 2078/5/2, received budget release order equal to the expenditure of Shrawan. b. On 2078/5/10, advance was given to office assistant Miss Aarati for purchasing furniture Rs. 15,000. c. On 2078/5/22, paid Rs. 2,500 as expenditure of copy, pen and files. d. On 2078/5/25, office assistant Miss Aarati submitted the bill of Rs. 14,000 and bank voucher to clear her account and her advance was cleared. e. On 2078/5/30, reimbursed the following expense made from the petty cash fund. Ticket charges Rs.220, Newspaper Rs.350, Tea Expenses Rs. 100, Printing Rs.550. 22. Prepare the Budget Sheet of District Police Office, Parbat from the information and transactions given below. B.H. No. Budget heads/Sub heads Annual budget Expenditures up to Ashwin Kartik 21111 21132 21121 21123 22711 31121 Salary Dearness Allowance Uniform / Dresses Medicine Miscellaneous Expenses Vehicle 4,00,000 1,00,000 3,00,000 1,20,000 2,50,000 3,20,000 2,02,000 50,000 1,25,000 20,000 7,000 1,05,000 30,000 5,000 11,000 30,000 18,000 2,00,200 Total 14,90,000 5,09,000 2,94,200 Additional Information : On 2078/8/2, received bank order and budget release of expenditure of Kartik. On 2078/8/10, Rs. 5,000 was given to office assistant Miss Pooja for purchasing bicycle in advance. On 2078/8/22, paid Rs. 1,200 as expenditure of tea and snacks. On 2078/8/25, office assistant Miss Pooja submitted the bill of Rs. 6,000 for purchasing bicycle and cleared her account. On 2078/8/30, reimbursed the following expenses made from the petty. Telephone charges Rs.520, Wages Rs. 160, coffee expenses Rs. 70, Repair Rs. 150.