301 Approved by CDC, Nepal Budget Sheet 23. Prepare budget sheet from the following information of District Police Office, Bara. B.H. No. Budget Heads Annual Budget Rs. Expenditure of Bhadra (Rs) 21111 28149 22311 21123 22313 31123 31122 Salary Other Rent Stationeries and Office Goods Medicine Books and Materials Expenses Furniture & Fixtures Machinery and Equipment 150,000 25,000 5,000 8,000 2,000 70,000 90,000 20,000 5,000 1,000 1,000 500 25,000 80,000 Total 3,50,000 1,32,500 a. Budget release order received for the expenses of Bhadra on 2078-6-8. b. Paid Rs. 1,81,000 after deducting Rs.2,000 as provident fund contribution for the distribution of salary on 2078-6-12. c. Paid Rs. 150 on 2078-6-16 for the reimbursement of the following petty cash expenses. Postage - Rs.70 Miscellaneous - Rs.30 Magazines - Rs.10 Printing - Rs.40 d. Paid Rs.70,000 to Syakar Company on 2078-6-17 as an advance for the supply of generator. e. Paid Rs. 15,000 against the purchases of furniture on 2078-6-20. f. Advance given to Syakar Company was cleared on 2078-6-25 by paying a cheque of Rs. 5,000 for the balances on receipt of generator worth Rs.75,000.
302 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 24. On the basis of the following information regarding annual appropriation and position of expenditure, prepare Budget Sheet for the month of Magh, 2078. a. The annual appropriation and the expenditure till the end of Poush are as given below. Budget Head No. Budget Heads Annual Appropriation (Rs.) Expenditure upto the Poush 21111 21131 28142 22311 22612 22711 31111 31123 31121 Salary Local Allowance House Rent Stationeries and Office Goods Travelling Expenses Miscellaneous Expenditure Building Construction Furniture & Fixtures Vehicle 1,80,000 18,000 72000 50,000 15,000 5,000 1,20,000 60,000 80,000 90,000 10,000 36,000 20,000 8,000 3,000 75,000 40,000 55,000 Total 6,00,000 3,37,000 b. Magh-1, created Petty Cash Fund of Rs. 1000 under the responsibility of Assistant Accountant Mr. Rudra Kami. c. Magh-10, Rs. 5,600 was advanced to S.O. Mr. Ratan Praja comprised of Rs. 5000 for office materials and Rs. 600 for travelling expenses. d. Magh- 15, Rs. 5,000 paid to Padma Shree Furniture against purchase of office furniture. e. Magh -20, advance given to S.O. Mr. Praja was cleared with the necessary reimbursement of Rs. 400 by approving the bills of Rs. 5200 for office materials and Rs. 800 for travelling expenses produced by him. f. Magh-25, paid Rs. 5000 and Rs. 2000 respectively for materials and wage incurred for the construction of office building. g. Magh-30, reimbursement of petty expenditures of Rs. 15 postage and stamps, Rs. 30 for printing, Rs. 12 for refreshment and Rs. 13 for newspaper was made by issuing a cheque. h. Magh-30, out of the salary of Rs. 15,000 for the month of Magh, the balance distributed after deducting 1500 as personnel provident fund and Rs. 500 as provident fund loan by cheque. The deductions were deposited in the respective accounts on the same day. Note: i. Petty cash fund establishment is not recorded in budget sheet. ii. Only the gross amount of salary is recorded in budget sheet.
303 Approved by CDC, Nepal Monthly Statement Budget Sheet Unit 11 Monthly Statement CDC Syllabus 11.1 Introduction and types 11.2 Use/practise of Monthly Statement of Expenditure 7 Periods Bank Reconciliation Cash Book Balance Rs. 15,000 Bank Statement Balance Rs. 17,600 Difference - Rs. 2600 ??? ??? – Bank After studying this unit, students will be able to : define monthly statement, write the objectives and importances of monthly statement, write and define types of monthly statement, solve the practical problems of statement and expenditure. Learning Objectives Nepal Government AGF No. 210 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Expenditure For the month of Ashwin, 2078 Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: Expenditure / Financial Code No. Name of Expenditure / Financial code Annual Budget Release upto current month Expenditure upto last month Expenditure of current month Expenditure upto current month Advance Net Expenditure after Advance Balance of Budget 21111 Employee Remuneration 5,20,000 1,22,000 85,000 37,000 1,22,000 1,22,000 3,98,000 21131 Local Allowance 50,000 12,500 10,000 2,500 12,500 12,500 37,500 22112 Communication Charge 60,000 13,000 8,000 5,000 13,000 13,000 47,000 28142 House Rent 2,00,000 46,000 40,000 6,000 46,000 46,000 1,54,000 22211 Fuel 35,000 9,000 6,000 3,000 9,000 9,000 26,000 22311 Office Materials 1,00,000 29,000 25,000 4,000 29,000 29,000 71,000 22312 Feeding Materials 1,00,000 23,000 16,000 7,000 23,000 23,000 77,000 22313 Books & Magazines 20,000 3,000 2,000 1,000 3,000 3,000 17,000 22612 Travelling Expenses 75,000 16,000 11,000 5,000 16,000 5,000 11,000 59,000 28911 Contingency Expenses 50,000 11,000 7,000 4,000 11,000 11,000 39,000 31123 Furniture & Fixtures 1,20,000 62,000 50,000 12,000 62,000 62,000 58,000 31159 Public Construction 70,000 18,500 15,000 3,500 18,500 18,500 51,500 Grand Total 1400000 365000 275000 85000 365000 5000 360000 1035000 Compare with Annual Budget (in %) 26.07% 19.64% 6.07% 26.07% 0.35% 25.71% 73.93% Prepared by : .............................. Approved by: .............................. Name : ......................................... Name : ......................................... Date : ......................................... Date : ......................................... Designation: ............................... Designation: ...............................
304 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 1. Introduction Recording of financial activities is regarded as the first step and preparation of financial statement as the final step of the accounting process. When reporting of the financial statements is made, accounting process comes to an end for operating level office. Financial reporting is the transmission of financial information to the controlling units in accordance to the rules and regulations of the entity concern. All operating level offices are required to submit their financial reports regularly to the central level office or controlling units like Office of District Treasury and Comptroller. These reports are prepared in the prescribed format and submitted on monthly basis. Government of Nepal uses monthly budget release system based on Monthly Statement of Expenditure. Unless the operating level offices submit the monthly expenditure report, budget is not realized for the next month. Following reports are to be submitted by operating level offices to controlling units: (i) Monthly Statement of Expenditure (AGF No. 210) (ii) Monthly Statement of Uncleared Advance (AGF No. 211), (iii) Bank Reconciliation Statement (AGF No. 212), (iv) Monthly Statement of Outstanding Payment (AGF No. 221) and (v) Monthly Statement of Security Deposit AGF No. 607. Key Point Monthly statements/reports refer to the financial statements/reports prepared in the prescribed forms and formats on the monthly basis by the operating level offices and are submitted to the central level office. 2. Objectives and Importance of Monthly Statement Monthly expenditure report is the most important report prepared under operating level accounting. It is prepared at the end of each month, to submit it to the central level office to get clearance of the advance remained in its name. Its importance can be studied in terms of the following objectives: i. Provides Necessary Data and Information They provide various financial data and information like budget release, budget expenditure, outstanding advance, position of fund, security deposit, surplus budget, etc. They help to prepare central level accounting and budget for forthcoming year. ii. Controls Over Budget They help in effective control over budget, as they provide different pieces of information related with the budget and its expenditure. They help to maintain the expenditure within the limitation of budget. iii. Helps in Auditing They provide up-to-date financial data and information for internal and final audit. Auditor can check the amount related with budget like annual appropriation, release, expenditure and surplus with the help of monthly statements.
305 Approved by CDC, Nepal Monthly Statement iv. Helps to Evaluate of govermental Jobs They are the main administrative tools for evaluation of the financial activities of the government offices and projects. They help to compare the progress of work and utilized budget and surplus budget for the effective evaluation, performance and progress. v. Helps to Make Effective Financial Decision They provide all the necessary financial information to the concerned authority such as budget release, expenditure, surplus, deficit, etc. which help to make effective decision. Points to Remember i. Provides Necessary Data ii. Controls Over Budget iii. Helps in Auditing iv. Helps to Evaluate v. Helps to Make Effective Decision 3. Types of Monthly Statement A. Monthly Statement of Expenditure (AGF No. 210) B. Monthly Statement of Uncleared Advance (AGF No. 211) C. Bank Reconciliation Statement (AGF No. 212) D. Monthly Statement of Security Deposit (AGF No. 607) E. Monthly Statement of Outstanding Payment (AGF No. 221) A. Monthly Statement of Expenditure (AGF No. 210) The operating level offices receive budget releases from their respective central level offices in terms of advance. By incurring the expenditure in each month, they submit the monthly report to their central level offices to get the clearance of advance. Various statements and reports, under operating level accounting, are prepared at the end of each month. Statements of Expenditure, AGF No. 210, Monthly Statement of Uncleared Advance, AGF No. 211, Bank Reconciliation Statement, AGF No. 212 are the most important statements or reports. Monthly Statement of Expenditure or Monthly Expenditure Report is the most important report prepared under operating level accounting. It has been designed so as to reflect the position of budget execution and funds of the reporting office on a monthly interval. It is a summary of annual appropriation of budget, budget release, and the expenses incurred on various heads, the condition of fund in terms of cash and bank balances and the uncleared portion of advance and loan, if any, till the end of the current month. It is prepared at the end of each month after closing advance ledger, bank cash book, budget sheet, etc. It serves as a basis to the central level offices on controlling units to exercise control over the budget and the fund of operating level offices. Monthly Statements of Expenditure are prepared in the format prescribed under AGF No. 210 by obtaining necessary information from subsidiary ledgers like, Budget Release A/c, Petty Cash Fund A/c, Advance A/c, Inter-Office Loan A/c, etc. and general ledgers like Bank Cash Book, Budget Sheet, etc.
306 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Key Point Monthly Statement of Expenditure is the statement prepared by the government offices to disclose the financial information about annual appropriate, budget release, expenditure advance transaction and balance of budget as well as their comparison with e annual budget expressed in percentage. Objectives/Importance of Monthly Statement of Expenditure Monthly Statement of Expenditure is the most importantreport prepared under operating level accounting. It is prepared at the end of each month, to submit it to the central level office to get clearance of the advance remained in its name. Its importance can be studied in terms of the following objectives: i. To avail data and information pertaining budget release, budget expenditure and surplus budget on each prescribed head, so as to help the central level offices for preparing budget estimation for the forthcoming period. ii. To avail information regarding the condition of advance expenditures and their position and the inter-office loan, if any, till the last of each month and control over them. iii. To help the central level office in evaluation whether or not the operating level offices are following the budgetary rules and regulations in the execution of budget. iv. To facilitate the central level offices for the preparation of central level accounting and their auditing because it is the basic document for internal as well as final audit. v. Monthly Statement of Expenditure is the reliable and authentic source of information which helps in formulating different financial plans and policies within the government offices. vi. To maintain financial discipline which is essential for expected progress. Specimen Monthly Statement of Expenditure Nepal Government AGF No. 210 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Expenditure For the month of ........................ Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: Expenditure / Financial Code No. Name of Expenditure / Financial code Annual Budget Release upto current month Expenditure upto last month Expenditure of current month Expenditure upto current month Advance Net Expenditure after Advance Balance of Budget 1 2 3 4 5 6 7 (5+6) 8 9 (7-8) 10 (3-7) Grand Total Compare with Annual Budget (in %) Prepared by : .............................. Approved by: .............................. Name : ......................................... Name : ......................................... Date : ......................................... Date : ......................................... Designation: ............................... Designation: ...............................
307 Approved by CDC, Nepal Monthly Statement Guidelines for Preparing Monthly Statement of Expenditure Monthly Statement of Expenditure is the monthly report, which is submitted, to the central level office, at the end of each month. All the necessary information should be fulfilled in it by getting them from a number of subsidiary and general ledgers. Thus, many things are to be taken into mind while preparing a Monthly Statement of Expenditure. The important considerations of preparing a Monthly Statement of Expenditure are mentioned below: Statements of expenditure prepared by operating level office at end of each month. This statement is prepared by giving separated budgeted number for every financial transaction of operating level office. In order to prepare Monthly Statement of Expenditure, first we should write income year and month of preparing Monthly Statement of Expenditure of the current year. In the column no. 1, the budget head number of respective budget head are to be written. In the column no. 2, the budget head name are to be written. In the column no. 3, the budget amount of different budget head are to be written. In the column no.4, the release amount upto current months are to be written. In the column no.5, the expenditure upto previous month are to be written. In the column no.6,the expenditure upto current month are to be written. In the column no.7, the sum amount of expenditure of current month and expenditure upto the previous month are to be included. In the column no. 8, the amount of advance given to the office staff or other parties are to be included. In the column no. 9, the balance amount after deducting advance amount from expenditure upto current month is to be included. In the column no. 10, the balance amount after deduction expenditure upto current month from the budget amount is to be included. The percentage of expenditure out of total budget amount should be computed to compare the final budget and these are to be mention in the column of percentage. After preparing the Monthly Statement of Expenditure, signature, post and date are to be clearly mention by the person who prepare and approve the Monthly Statement of Expenditure. Note: If Monthly Statement of Expenditure is prepared at the end of income year that the end of Ashad, then it shows the financial position of whole income year. Illustration - I Based on the following information regarding the budget and expenditure, prepare the Monthly Statement of Expenditure for the month of Ashwin, 2078. Budget Head No. Budget Head Annual Appropriation Approved Expenditure upto the month of Bhadra Expenditure of the month of Ashwin 21111 Salary 5,20,000 85,000 37,000 21131 Local Allowance 50,000 10,000 2,500
308 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 22112 Communication Charge 60,000 8,000 5,000 28142 House Rent 2,00,000 40,000 6,000 22211 Fuel 35,000 6,000 3,000 22311 Stationeries & Office Goods 1,00,000 25,000 4,000 22312 Feeding Materials 1,00,000 16,000 7,000 22313 Books & Magazines 20,000 2,000 1,000 22612 Travelling Expenses 75,000 11,000 (Adv) 5,000 28911 Contingency Expenses 50,000 7,000 4,000 31123 Furniture & Fixtures 1,20,000 50,000 12,000 31159 Public Construction 70,000 15,000 3,500 Total: l4,00,000 2,75,000 90,000 Solution: Nepal Government AGF No. 210 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Expenditure For the month of Ashwin, 2078 Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: Expenditure / Financial Code No. Name of Expenditure / Financial code Annual Budget Release upto current month Expenditure upto last month Expenditure of current month Expenditure upto current month Advance Net Expenditure after Advance Balance of Budget 21111 Employee Remuneration 5,20,000 1,22,000 85,000 37,000 1,22,000 1,22,000 3,98,000 21131 Local Allowance 50,000 12,500 10,000 2,500 12,500 12,500 37,500 22112 Communication Charge 60,000 13,000 8,000 5,000 13,000 13,000 47,000 28142 House Rent 2,00,000 46,000 40,000 6,000 46,000 46,000 1,54,000 22211 Fuel 35,000 9,000 6,000 3,000 9,000 9,000 26,000 22311 Office Materials 1,00,000 29,000 25,000 4,000 29,000 29,000 71,000 22312 Feeding Materials 1,00,000 23,000 16,000 7,000 23,000 23,000 77,000 22313 Books & Magazines 20,000 3,000 2,000 1,000 3,000 3,000 17,000 22612 Travelling Expenses 75,000 16,000 11,000 5,000 16,000 5,000 11,000 59,000 28911 Contingency Expenses 50,000 11,000 7,000 4,000 11,000 11,000 39,000 31123 Furniture & Fixtures 1,20,000 62,000 50,000 12,000 62,000 62,000 58,000 31159 Public Construction 70,000 18,500 15,000 3,500 18,500 18,500 51,500 Grand Total 1400000 365000 275000 85000 365000 5000 360000 1035000 Compare with Annual Budget (in %) 26.07% 19.64% 6.07% 26.07% 0.35% 25.71% 73.93% Prepared by : .............................. Approved by: .............................. Name : ......................................... Name : ......................................... Date : ......................................... Date : ......................................... Designation: ............................... Designation: ...............................
309 Approved by CDC, Nepal Monthly Statement Illustration - 2 Prepare an expenditure report for the month of Chaitra, 2078 from the given information below. Budget Heads Annual Appropriation Expenditure upto the end of Falgun Expenditure during the Month of Chaitra Salary 7,90,000 5,40,000 60,000 Medical Allowance 50,000 30,000 7,000 Water and Electricity 20,000 14,000 1,000 Communication Charges 24,000 16,000 3,000 Stationeries and Office Goods 45,000 28,000 6,000 House Rent 72,000 44,000 5,500 Fuel 18,000 12,000 3,000 Miscellaneous Expenses 5,000 5,000 - Purchase of Land 1,80,000 1,50,000 - Vehicle 2,00,000 - 2,00,000 Machineries & Equipments 1,30,000 88,000 12,000 Building Construction 4,50,000 3,00,000 1,00,000 Additional information: i. An LC opened on 5th of Chaitra of Rs. 2,00,000 in the name of Xinha Co. China for purchasing a car for office use. The car has not been received yet. Solution: Nepal Government AGF No. 210 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Expenditure For the month of Chaitra, 2078 Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: Expenditure / Financial Code No. Name of Expenditure / Financial code Annual Budget Release upto current month Expenditure upto last month Expenditure of current month Expenditure upto current month Advance Net Expenditure after Advance Balance of Budget 21111 Salary 7,90,000 6,00,000 540,000 60,000 6,00,000 6,00,000 1,90,000 21123 Medical Treatment Expenses 50,000 37,000 30,000 7,000 37,000 37,000 13,000 22111 Water and Electricity 20,000 15,000 14,000 1,000 15,000 15,000 5,000 22112 Communication Charges 24,000 19,000 16,000 3,000 19,000 19,000 5,000 28142 House Rent 72,000 49,500 44,000 5,500 49,500 49,500 22,500 22211 Fuel 18,000 15,000 12,000 3,000 15,000 15,000 3,000 22311 Stationeries and Office Goods 45,000 34,000 28,000 6,000 34,000 34,000 11,000 22711 Miscellaneous Expenses 5,000 5,000 5,000 - 5,000 5,000 - 31411 Purchase of Land 1,80,000 1,50,000 1,50,000 - 1,50,000 1,50,000 30,000 31111 Building Construction 4,50,000 4,00,000 3,00,000 1,00,000 4,00,000 4,00,000 50,000
310 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 31121 Vehicle 2,00,000 2,00,000 - 2,00,000 2,00,000 2,00,000 - - 31122 Machineries and Equipments 1,30,000 1,00,000 88,000 12,000 1,00,000 1,00,000 30,000 Grand Total 19,84,000 16,24,500 12,27,000 3,97,500 16,24,500 2,00,000 14,24,500 3,59,500 Compare with Annual Budget (in %) 81.89% 61.84% 20.03% 81.89% 10.08% 71.79% 18.11% Prepared by : .............................. Approved by: .............................. Date : ......................................... Date : ......................................... Designation: ............................... Designation: ............................... Illustration - 3 From the following information relating to the month of Shrawan expenditure for the month, to be submitted by District Police Office, Chitwan. Budget Heads Annual Budget Expenditure end of Shrawan Budget Balance Employee remuneration 400,000 40,000 160,000 Field allowances 60,000 10,000 20,000 Book and material expenses 120,000 20,000 40,000 Miscellaneous expenses 60,000 6,000 14,000 Communication charges 40,000 2,000 12,000 Additional information: i. Uncleared advance of communication charges is Rs. 500. ii. Uncleared advance of field allowances is Rs. 7,000. Required: Prepare Monthly Statement of Expenditure for the month of Shrawan showing i. Expenditure upto the month of Shrawan ii. Release upto the month of Shrawan iii. Actual expenditure after adjusting uncleared advance. iv. Percent of expenditure of each budget head out of the annual budget. Solution: Nepal Government AGF No. 210 District Police Office, Chitwan Office Code No.: .................... Monthly Statement of Expenditure For the month of Shrawan, 2078 Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: .............................................................................................. Expenditure / Financial Code No. Name of Expenditure / Financial code Annual Budget Release upto month of Shrawan Expenditure upto month of Ashad Expenditure of the month of Shrawan Expenditure upto month of Shrawan Advance Net Expenditure after Advance Balance of Budget 21111 Employee remuneration 400,000 240,000 200,000 40,000 240,000 - 240,000 160,000 21133 Field allowances 60,000 40,000 30,000 10,000 40,000 7,000 33,000 20,000 23313 Book and material expenses 120,000 80,000 60,000 20,000 80,000 - 80,000 40,000
311 Approved by CDC, Nepal Monthly Statement 22711 Miscellaneous expenses 60,000 46,000 40,000 6,000 46,000 - 46,000 14,000 22112 Communication charges 40,000 28,500 26,000 2,000 28,500 500 28,000 12,000 Grand Total 680,000 434,500 356,000 78,000 434,500 7,500 427,000 246,000 Compare with Annual Budget (in %) 63.89% 52.35% 11.47% 63.89% 1.10% 62.79% 36.17% Prepared by : .............................. Approved by: .............................. Date : ......................................... Date : ......................................... Designation: ............................... Designation: ............................... B. Monthly Statement of Uncleared Advance (AGF No. 211) Monthly Statement of Uncleared advance provides information about the advances. It includes name of the parties availing in the advance, date of advances given, whether such an advance has been overdue or not, etc. The amount of outstanding advance orrevealed by the Monthly Statement of Expenditure should match with the total amount of outstanding advances depicted by this statement. The basic purpose of this statement is to get information about the amount of outstanding advance related with various parties in the reporting month. The specimen of the Monthly Statement of Expenditure has been given below: Central / Province / Local level AGF No. 211 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Uncleared Advance For the month of .......... Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: ...................................................................... Date of advance taken J.V. No. Particulars of advance Name of person, film or company receiving advance Designation (If Employee) Advance Code No. Expenditure Subheading No. For current fiscal year For last fiscal year Grand total of advance Re ma rks Date unexpired Date Exp. Date unexpired Date Exp. Date Unexp. Date Exp. Total Amt. Last date for clearance Amt. Last date for clearance 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1. Authorities / Employees Total 2. Contracters / Personal Total 3. Letter of credit advance Total 4. Institutional advance Total 5. Others Total Grand total (1+2+3+4+5) Prepared by : .............................. Submitted by : .............................. Approved by: .............................. Date : ......................................... Date : ......................................... Date : ......................................... Designation: ......................... Designation: .............................. Designation: ..............................
312 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Guidelines for preparing of Monthly Statement of Uncleared Advance The information to be written in the different columns of above specimen is given below: Columns Information to be written 1 Date of advance given is mentioned in this column. 2 The journal voucher number of the transaction being posted in advance account is mentioned. 3 The particulars related to employees, contractors, institutions, etc. is mentioned. 4 The name of individuals, firm or company which has taken the advance is written in this column. 5 The position of employee (if employee has taken advance) is mentioned in this column. 6 The code number of advance is mentioned in this column. 7 The budget head or sub-head with its number in which advance paid is mentioned in this column. 8 Unexpired advance amount of current fiscal year is mentioned in this column. 9 The date of clearance of advance amount is mentioned in this column. 10 The expired current fiscal year advance amount is mentioned in this column. 11 Unexpired previous fiscal year advance amount is mentioned in this column. 12 The last date of unexpired previous fiscal year advance amount is mentioned in this column. 13 Expired previous fiscal year advance amount is mentioned in this column. 14 Unexpired total advance amount of previous year and current year is mentioned in this column. It is obtained by totaling the amount of column number 8 and column number 11. 15 Expired total advance amount of previous year and current year is mentioned in this column. It is obtained by totaling the amount of column number 10 and column number 13. 16 The total of expired and unexpired advance amount is mentioned in this column. It is obtained by adding the amount of column number 14 and column number 15. 17 Any information relating to advance not recorded in other columns is mentioned in this column. Illustration - 4 The following advance related financial transactions of District Education Office, Chitwan are given to you. Poush 2, Issued a payment order to DTCO to given advance to Account Officer Mr. Hari Karki for purchasing computer amounting to Rs 50,000 for 7 days. Poush 5 Issued a payment orderto DTCO to given advance to Sharma Construction Company for construction of drinking water infrastructure with 50 days amounting to Rs 10,00,000. Poush 15 Issued a payment order to DTCO to open letter of credit in the name of Hero Honda Company to import a car amounting to Rs. 20,00,000 within 30 days. Poush 20 Issued a payment order to DTCO to open letter of credit in the name of ABC Company for supplying a motorbike of Rs. 5,00,000 withing 40 days. Required: Monthly statement of uncleared advance.
313 Approved by CDC, Nepal Monthly Statement Solution: Central / Province / Local level AGF No. 211 District Education Office, Chitwan Office Code No.: .................... Monthly Statement of Uncleared Advance For the month of Poush, 2078 Budget Sub-head No.: ......................................................................... Fiscal Year: ............................................. Budget Sub-head Name: ...................................................................... Date of advance taken J.V. No. Particulars of advance Name of person, film or company receiving advance Designation (If Employee) Advance Code No. Expenditure Subheading No. For current fiscal year For last fiscal year Grand total of advance Re ma rks Date unexpired Date Exp. Date unexpired Date Exp. Date Unexp. Date Exp. Total Amt. Last date for clearance Amt. Last date for clearance 6. Authorities / Employees Poush 2 Employees Mr. Hari Account Officer - 31122 Poush 12 50,000 - - - - 50,000 50,000 Total 50,000 50,000 50,000 7. Contracters / Personal Poush 5 Contractor Sharma Construction Company - - 31156 10,00,000 Magh 25 - - - - 10,00,000 - 10,00,000 Total 10,00,000 10,00,000 10,00,000 8. Letter of credit Poush 15 Letter of Credit Hero Honda Company - - 31121 20,00,000 Magh 15 - - - - 20,00,000 - 20,00,000 Poush 20 Letter of Credit ABC Company - - 31121 5,00,000 Magh 30 - - - - 5,00,000 - 5,00,000 Total 2500000 2500000 2500000 Grand total (1+2+3+4+5) 3500000 3500000 3550000 Prepared by : XYZ Submitted by : XYZ Approved by: PQR Date : Poush 29 Date : Poush 29 Date : Poush 29 Designation: Junior Account Designation: Account Officer Designation: Chief C. Bank Reconciliation Statement (AGF No. 212) New Accounting System gives emphasis on banking dealings. All the transactions of a government office are operated through bank except the petty cash expenditures which are made from the Petty Cash Fund. Most of the receipts are made through bank transfer i.e. through Nepal Rastra Bank and any receipts made in cash are immediately deposited into the bank. The payments are made through cheque. The transactions related with bank are recorded into the Bank Cash Book and it shows the bank balance at the end of each month. Bank Cash Book is a general ledger of an operating level office and, thus it also shows the balances of other accounts like cash, budget expenditure, advance expenditure and miscellaneous, etc. In the case of Bank Reconciliation Statement, it is discussed here about bank balance shown by Bank Cash Book to reconcile with the balance shown by Pass Book. On the other part, bank also maintains the accounts of each office separately to record its deposits and withdrawals made from time to time. It is known as bank statement with client’s account or Pass Book in common term. The Bank Cash Book maintained by an office and the Pass Book maintained by the bank in the name of the office record the same transactions. Thus, the two balances should tally. It means the Dr. balance of Bank Cash Book should tally the Cr. balance of Pass Book and
314 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal vice versa. At the end of each period, a month, the balances of these two books may differ due to some reasons. The reason may be: Cheque issued but not presented till the date. Cheques deposited but not collected till the date. Errors in bank cash book or pass book. Undercast or overcast in bank cash book or pass book. Bank charges commission, etc. directly charged by the bank for its services, etc. but not recorded in bank cash book. Revenue collected directly by bank but not recorded in bank cash book. A statement is prepared at the end of each month under operating level accounting according to the format designed to AGF No. 212 to match the balances of Bank Cash Book and Pass Book by identifying and adjusting the causes of difference between them. This statement is known as Bank Reconciliation Statement. Hence, a Bank Reconciliation Statement may be defined as a statement prepared by an operating level office under the prescribed format to match the balances shown by Bank Cash Book and Pass Book by adjusting the causes of differences between them. It is prepared to control over the leakage and corruption of fund and to overcome the confusions in the dealings between the office and its bank. It is prepared as AGF No. 212 format. Central / Province / Local level AGF No. 212 ................ Office /Dept./Ministry ................. Office Code No.: .................... Bank Reconciliation Statement For the month of ............. A. Balance as per book record Rs. ............................................. B. Add: Deposit in transit or Undercast in Cr. side of Bank Cash Book S.N. Date Ch. No. / J.V. No. / JETC No. Particulars Amount 1 2 3 4 5 Total ................ C. Less Cheque issued but not presented and Revenue directly collected by bank S.N. Date Ch. No. / J.V. No. / JETC No. Particulars Amount 1 2 3 4 5 Total ................ D. Adjusted Bank Balance (A+B–C) Rs. ............................................. E. Balance as per bank statement Rs. ............................................. Name of bank: .......................................... Account Number: .......................................... F. Difference Amount (D-E) Rs. ........................................... Submitted by : .............................. Approved by: .............................. Date : ......................................... Date : ......................................... Designation: ............................... Designation: ...............................
315 Approved by CDC, Nepal Monthly Statement Guidelines to Prepare Bank Reconciliation Statement 1. It is prepared for each month. 2. The name of office, code number, the date should be mentioned on the top. 3. The bank balance shown by the office record should be mentioned in A. 4. The date, check number, particulars of the amount directly deposited into bank account should be mentioned in B. 5. According to the requirement B and C should be fulfilled. 6. The amount obtained adding amount of A and B and subtracting C should be mentioned in D. 7. Actual bank balance , bank account number and name of the bank are recorded in E. 8. The difference between D and E should be mentioned in F. Illustration - 5 Prepare Bank Reconciliation Statement, AGF No. 212 from the following information Bank balance as per Bank Cash Book on 30th Poush, 2078 was Rs. 39,000 while comparing to the Pass Book the following were found. a. The office issued the following cheques on 25th of Poush, 2078 was not presented into the bank for payment, i. Cheque no. 12345 to Raymond Furnitures, Kapan of Rs. 7,000. ii. Cheque no. 12346 to Royal Stationeries, Thamel of Rs. 3,000. b. An amount of Rs. 900 undercasted in the Cr. side of Bank Cash Book. c. The following amounts were deposited by the office on 28th Poush but were not collected till the end of the month. i. Excess amount over the advance given to Officer S.N. Pandit Rs. 500. ii. Loan advanced to nearby office received back Rs. 8,000. iii Additional Budget Release received from the office of the Treasury and Comptroller Rs. 25,000. d. The balance shown by Bank Pass Book at the end of the month was Rs. 14,600. Central / Province / Local level AGF No. 212 ................ Office /Dept./Ministry ................. Office Code No.: .................... Bank Reconciliation Statement For the month of Poush, 2078 A. Balance as per book record B. Add: Deposit in transit or Undercast in Cr. side of Bank Cash Book Rs. 900 Rs. 14600 S.N. Date Ch. No. / J.V. No. / JETC No. Particulars Amount Excess over advance returned 500 Loan advanced returned back 8,000 Additional budget release received 25,000 Total 33,500 34,400
316 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal C. Less Cheque issued but not presented and Revenue directly collected by bank S.N. Date Ch. No. / J.V. No. / JETC No. Particulars Amount Cheque no. 12345 to Raymond Furniture Cheque no. 12346 to Basyal Stationeries 7,000 3,000 Total 10,000 D. Adjusted Bank Balance (A+B–C) = 14600 + 34400 – 10000 Rs. 39,000 E. Balance as per bank statement Rs. 39,000 Name of bank: .......................................... Account Number: .......................................... D. Monthly Statement of Security Deposits (AGF No. 607) Every office should prepare monthly reports regarding the transaction related to security deposits and present to the concerned Ministry/Departments/Offices. While preparing the report, a separate Bank Reconciliation Statement (AGF No. 212)related with security deposit account has to be prepared. It is prepared as per the format prescribed under AGF No. 607. An specimen is given below: Central / Province / Local level AGF No. 607 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Security Deposit For the month of ............. Total security deposits till the last month: Rs. .................... Security deposits of the current month: Rs. .................... Total Rs .................... Refund of security deposits after the completion of job Rs. .................... Security deposits converted to revenue Rs. .................... Total Rs. .................... Net balance of security deposits Rs. .................... Position of Fund: Account No .............. Bank balance ................. Cash Balance ............. Submitted by .................... Designation .................... Date .................... Approved by .................... Designation .................... Date .................... E. Monthly Statement of Outstanding Payment (AGF No. 221) This report is to be prepared monthly by the government office to disclose the details of outstanding payment to the different persons or parties forreceipt of goods, service and doing other jobs. This report shows the heads and the amount of outstanding payment to the respective office and parties during a particular month. It is prepared as per the format prescribed under AGF No. 221. An example is given below:
317 Approved by CDC, Nepal Monthly Statement Central / Province / Local level AGF No. 210 ................ Office /Dept./Ministry ................. Office Code No.: .................... Monthly Statement of Outstanding Payment For the month of ............. Budget Sub-head No.: ............................................................................... Fiscal Year .................................. Date of creating liability Transaction Code No. Expenditure Sub-head No. Name of Program Particulars Name of Payee Payable Amount Cause of Outstanding Total The above detail is correct: Prepared by : .............................. Approved by: ........................... Treasury and Comptroller : ................... Date : ......................................... Date : ......................................... Date : ......................................... Designation: ......................... Designation: .............................. Designation: .............................. Glossary Rectify : to correct and verify Reconciliation : the way of correction of balance of passbook and cash book Surplus budget : more amount of budget Loan payable : loan borrowed but not paid yet Octroi : tax on various goods brought into a town Total release : total budget release from the control level Unclear advance : advance given but not cleared yet Exercise A. Answer the following questions in one sentence. 1. What are monthly statements? 2071(S) 2. What is meant by monthly statement? 3. Write the AGF.No. of Monthly Statement of Revenue. 2069(R) 4. Write the names of sections written in Monthly Statement of Expenditure. 5. What is statement of outstanding advance? 6. Write the AGF No. of Bank Reconciliation Statement. B. Give short answers to the following questions. 7. What is Monthly Statement in Government Accounting? Explain any four points of importance of Monthly Statement. 8. Explain the types of Monthly Statement. 9. What is Monthly Statement of Expenditure, AGE No. 13? Mention its objectives.
318 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 10. What are the important things to be considered while preparing Monthly Statement of Expenditure? Discuss. 11. Describe the ruling of Monthly Statement of Expenditure. 12. What is Bank Reconciliation Statement? Write any four reasons of not matching the balance between pass book and cash book. NUMERICAL PROBLEMS 1. The following information is taken from a government office. B.H. No. Expenditure Head Annual Budget Amount (Rs.) Expenditure upto Ashwin (Rs.) Expenditure of Kartik (Rs.) 21111 21131 22612 22311 31123 31122 Salary Local Allowance Travelling Expenses Stationeries & Office Goods Furniture & Fixtures Machinery & Equipments 2,00,000 4,000 20,000 18,000 40,000 1,00,000 45,000 900 4,000 4,500 9,500 30,000 30,000 300 2,000 2,000 3,700 12,000 Required Monthly Expenditure Report for Kartik, 2078, showing: a. Total expenditure upto the end of Kartik b. Unspent budget release upto the end of Kartik. c. Net expenditure upto Kartik. d. Percent of expenditure of each budget head out of the annual budget. Ans: a) Rs.1,43,900 b) Rs. 68,100 c) Rs. 1,42,600 d) ............% 2. The details of expenses in District Police Office, Dolpa. B.H. No. Expenditure Head Annual Budget Amount (Rs.) Expenditure upto Poush (Rs.) Expenditure of Magh (Rs.) 21111 21133 22213 22311 22711 31121 Salaries Field Allowance Vehicles Maintenance Expenses Stationeries and Office Goods Miscellaneous expenditure Vehicle 1,44,000 12,000 6,000 10,000 8,000 20,000 72,000 6,000 3,000 4,000 5,000 12,000 12,000 1,000 500 2,000 1,500 3,000 Total 200,000 102,000 20,000 Additional Information Advance for vehicle of Rs 2,000 is not cleared. Prepare statement of the Expenditure for the month of Magh, 2078, showing the following information. a. Budget release b. Expenditure upto Magh c. Net expenditure d. Budget balance e. Percent of expenditure of each budget head out of the annual budget. Ans: a) Rs. 1,22,000 b) Rs. 1,22,000 c) Rs. 1,20,000 d) Rs. 78,000 e) .........%
319 Approved by CDC, Nepal Monthly Statement 3. The followings are the details of expenditure related with District Development Office, Kaski. B.H. No. Expenditure Head Annual Appropriation Rs. Release upto Magh Rs. Balance of Budget Rs. 21111 22111 22211 22311 31159 31411 Salaries Water and Electricity Fuel Stationeries and Office Goods Purchase of Land Public Construction 150,000 25,000 40,000 20,000 1,00,000 80,000 80,000 10,000 10,000 5,000 80,000 30,000 50,000 10,000 15,000 10,000 10,000 40,000 Total 4,15,000 2,15,000 1,35,000 Additional Information: Advance for Public Construction of Rs. 11,000 is not cleared. Uncleared fuel advance is Rs.1,000. Required: Prepare the Monthly Statement of Expenditure for the month of Magh, 2078 showing the following. a. Expenditure of Magh b. Expenditure upto Magh c. Net expenditure d. Percent of expenditure of each budget head out of the annual budget. Ans: a) Rs. 65,000 b) Rs. 2,80, 000 c) Rs. 2, 69, 000 d) ............% 4. The followings are the details of the expenditure related with the District Administration Office, Jumla. B.H. No. Budget Heads Annual Appropriation Rs. Expenditure of Bhadra Rs. Balance of Budget Rs. 21111 21131 21123 22612 22711 31121 Salaries Local Allowance Medical Expenses Travelling Expenses Miscellaneous Expenses Vehicle 25,00,000 1,00,000 15,000 50,000 20,000 12,80,000 1,72,000 16,000 0 14,000 2,000 80,000 22,00,000 75,000 11,500 10,000 10,000 0 Total 39,65,000 2,84,000 23,06,500 Additional Information: In the advance account column of Bank Cash Book, Rs. 2,000 was shown in the advance given column and Rs.1,300 was shown in the advance cleared column. Required: Statement of the Expenditures forthe month of Ashwin, 2078 showing the following. a. Expenditure upto Bhadra b. Budget release upto Bhadra c. Net expenditure d. Percent of expenditure of each budget head out of the annual budget. Ans: a) Rs.16,58,500 b) Rs.13,74,500 c) Rs.16,57,800 d) .........%
320 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 5. The following are the details of expenditure relating to District Administration Office, Kathmandu. B.H. No. Budget Heads Annual Appropriation Rs. Expenditure upto Bhadra Rs. Expenditure upto Ashwin Rs. 21111 21122 28142 22311 22313 31123 Salaries Food Materials House Rent Stationeries and Office Goods Book & materials Furniture & Fixtures 2,50,000 18,000 26,000 20,000 20,000 50,000 50,000 3,000 5,000 5,000 5,000 20,000 75,000 3,500 6,400 8,000 6,000 27,000 Total 3,84,000 88,000 1,25,900 Additional Information: Advance for furniture of Rs. 7,000 is not cleared. Required: Prepare the Monthly Statement of Expenditure for the month of Ashwin, 2078 showing the following. a. Expenditure of Ashwin b. Balance of budget c. Net expenditure d. Percent of expenditure of each budget head out of the annual budget. Ans: a) Rs.37,900 b) Rs.2,58,100 c) Rs.1,18,900 d) ........... % 6. Following are the statements of revenues and expenditures of Agriculture Office, Illam for the month of Magh, 2078. Prepare a Statement of Expenditure : B.E. No. Budget Heads Annual Appropriation Expenditure upto Poush Expenditure of Magh 21111 21131 28149 22211 22213 22311 22612 28911 31159 31123 31121 Salary Local Allowance Other Rent Fuel Vehicles Maintenance Expenses Stationeries and Office Goods Travelling Expenses Contingency Public Construction Furniture & Fixtures Vehicle 36,00,000 6,00,000 18,000 40,000 12,000 2,40,000 4,80,000 1,00,000 2,00,000 60,000 70,000 18,00,000 3,00,000 9,000 20,000 6,000 1,20,000 2,40,000 50,000 50,000 50,000 35,000 3,00,000 50,000 1,500 2,000 1,000 20,000 40,000 8,000 25,000 5,000 5,000 Total 54,20,000 26,80,000 4,57,500 Additional Information : 1. The office loan given Rs. 55,000 to others and it is not yet collected. 2. In the advance account column of Bank Cash Book, Rs. 2000 was shown in the advance given column and Rs. 1,300 was shown in the advance cleared column.
321 Approved by CDC, Nepal Monthly Statement Required: a. Total expenditure upto Magh Ans: Rs. 31,37,500 b. Budget balance Ans: Rs. 22,82,500 c. Net expenditure Ans: Rs. 31,36,800 d. Percent of expenditure of each budget head out of the annual budget. Ans: ........... % 7. Based on the following particulars, prepare Bank Reconciliation Statement for the month of Falgun. Bank Statement at the end of Falgun showed the bank balance of Rs. 1,20,000 and on the same date, Bank Cash Book revealed the bank balance of Rs. 1,10,500 for the same transactions while scrutinising the transactions, the following facts were found: a. The following cheques were issued but not cashed till the end of Falgun: Cheque no. 03567 of Rs. 12,000 against the purchase of office materials Cheque no. 03568 of Rs. 8,500 against the purchase of other materials. b. Rs. 500 deposited into bank on 10-11-075 being cash returned in course of advance clearance was recorded by the bankers as Rs. 5,000. c. A cheque of Rs. 15,000 received as the repayment of inter-office loan from a nearby office, was deposited but not collected till the end of the month. d. Bank charge of Rs. 500 debited by bank was omitted in the Bank Cash Book to record. S.L.C/SEE Examination Questions 8. Why is monthly statement prepared? Describe any four points of importance in brief. (2059‘R’) 9. Introduce Monthly Statement and describe its four kinds. (2063 ‘R’) 10. What is it called to the monthly report prepared in government accounting system? 2067(S) 11. Prepare Monthly Statement of Expenditure forthe month of Ashoj, 2068 Office of District, Development Committee, Rupandehi from the following particular. 2068(R) Budget Head No. Budget Heads Annual Appropriation Rs. Expenditure up to Bhadra Rs. Expenditure of Ashoj Rs. 21111 21133 28142 28911 31114 31123 Salary Field Allowance House Rent Contingencies Local development work Furniture & fixtures 5,00,000/- 45,000/- 90,000/- 35,000/- 25,000/- 20,000/- 1,70,000/- 18,000/- 20,000/- 12,000/- 10,000/- 7,000/- 40,000/- 6,000/- 7,000/- 5,000/- – 2,000/- Total 7,15,000/- 2,37,000/- 60,000/- Additional information: Uncleared furniture advanced Rs. 4,000/-
322 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Show the following: a) Budget release/total allotment up to Ashoj b) Total expenditure up to Ashoj c) Net expenditure less uncleared advance d) Budget balance e) Percent of expenditure of each budget head out of the annual budget. Ans: (a) Rs. 2,37,000 (b) Rs. 2,97,000 (c) Rs. 2,93,000 (d) Rs. 4,18,000 e) ........... % 12. The details of expenses in District Administration Office, Gulmi are as follows: 2067(S) Budget Head No. Budget Heads Annual appropriation Rs. Expenditure up to Baisakh Rs. Expenditure of Jestha Rs. 21111 21123 22112 22213 22711 31121 Salary Medical treatment expenses Communication charge Vehicle maintenance expenses Miscellaneous expenditure Vehicle 1,60,000/- 15,000/- 10,000/- 8.000/- 6,000/- 21,000/- 80,000/- 7,000/- 4,000/- 3,000/- 2,000/- 4,000/- 4,8000.- 2,000/- 1,000/- 1,500/- 500/- 3,000/- Total 2,20,000/- 1,00,000/- 56,000/- Additional information Advance for vehicle, Rs. 5,000/- is not cleared. Prepare statement of the expenditure for the month of Jestha, 2067 showing the following information. Total expenditure upto Jestha Ans: Rs.1,56,000 Balance of budget Ans: Rs.64,000 Net expenditure Ans: Rs.1,51,000 13. Following are the details of expenditure in District Administration Office Bhojpur. 2067(R) B. H. No. Budget Heads Annual appropriation Rs. Expenses up to Bhadra Rs. Expenses of Ashoj Rs. 21111 21131 28142 22311 22711 31123 Salary Local Allowance House Rent Stationeries and Office Goods Miscellaneous Expenses Furniture & Fixtures 6,00,000/- 75,000/- 1,20,000/- 35,000/- 18,000/- 40,000/- 1,00,000/- 15,,000/- 20,000/- 10,000/- 3,000/- 16,000/- 50,000/- 3,000/- 10,000/- 2,000/- 1,500/- 4,000/- Total 8,88,000/- 1,64,000/- 70,500/- Additional information: Uncleared furniture advance Rs. 10,000/-
323 Approved by CDC, Nepal Monthly Statement Prepare Monthly Statement of Expenditure for the month of Asoj, 2067 showing the followings : Budget release up to Asoj Ans: Rs. 1,64,000 Total expenditure up to Asoj Ans: Rs. 2,34,500 Budget balance Ans: Rs. 6,53,500 14. The details of expenses in District Administration Office, Bhaktapur : 2066(S) B. H. No. Budget Heads Annual appropriation Rs. Expenditure upto Poush Rs. Expenditure of Magh Rs. 21111 21133 28142 22311 31123 31121 Salary Field Allowance House Rent Stationeries and Office Goods Furniture & Fixtures Vehicle 2,50,000 30,000 60,000 15,000 10,000 1,20,000 70,000 10,000 25,000 5,000 5,000 90,000 15,000 3,000 5,000 2,000 1,000 10,000 Total 4,85,000 2,05,000 36,000 Additional information: Uncleared vehicle advance Rs. 15,000/- Prepare statement of the expenditure for the month of Magh, 2065 showing the following information: i. Expenditure upto Magh Rs. 2,41,000 ii. Balance Budget Rs. 2,44,000 iii. Net expenditure Rs. 2,26,000 15. Following are the details of expenditure relating to District Irrigation Office, Chitwan: 2066(R) Budget Head No. Budget Heads Annual appropriation Rs. Expenditure up to Bhadra Rs. Expenditure of Ashoj Rs. 21111 21132 22211 22311 22612 31123 Salary Dearness Allowance Fuel Expenses Stationeries and Office Goods Travelling Expenses Furniture & Fixtures 2,50,000 50,000 60,000 25,000 15,000 50,000 40,000 20,000 12,000 10,000 2,000 10,000 30,000 6,000 5,000 4,000 1,500 4,000 Total 4,50,000 94,000 50,500 Additional information: Advance of Rs. 5,000 remains unclear. Prepare statement of the expenditure for the month of Ashwin showing the following : i. Expenditure up to the month of Ashwin Rs. 1,44,500 ii. Balance budget Rs. 3,05,500 iii. Total budget release Rs. 1,59,000 iv. Net expenditure Rs. 1,39,500
324 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 16. Prepare the Monthly Statement of Expenditure for the month of Chaitra, 2065 from the following particulars. 2065(S) Budget Head No. Budget Heads Annual appropriation Rs. Expenditure upto Falgun Expenditure of Chaitra Rs. 21111 21121 22311 22313 31123 31122 Salaries Uniform Stationeries and Office Goods Books and materials Furniture & Fixtures Machinery equipment 30,00,000/- 90,000/- 25,000/- 1,20,000/- 48,000/- 35,000/- 20,00,000/- 62,000/- 14,000/- 80,000/- 24,000/- 20,000/- 3,00,000/- 5,000/- 3,000/- 10,000/- 6,000/- 4,000/- Total 33,18,000/- 22,00,000/- 3,28,000/- Additional information: Machinery & equipment advance Rs. 6,000/- is not cleared. Required: (i) Balance budget Rs. 7,90,000 (ii) Net expenditure Rs. 25,22,000 (iii) Expenditure upto Chaitra Rs. 25,28,000 17. The details of expenses in Land Reform Office, Baglung : 2065(R) Budget Head No. Budget Heads Annual appropriation Rs. Expenditure up to Ashwin Expenditure of Kartik 21111 21122 22112 28142 22311 31123 Salary Food Materials Communication Charge House Rent Stationeries and Office Goods Furniture & Fixtures 84,000 5,000 7,000 24,000 6,000 10,000 28,000 2,000 1,600 8,000 3,000 4,000 7,000 – 500 2,000 1,500 1,000 Total 1,36,000 46,600 12,000 Additional information Uncleared Stationeries and Office Goods advance Rs. 3,000. Prepare statement of the Expenditure for the month of Kartik of 2064, showing the following information : (i) Balance budget (ii) Net expenditure (iii) Expenditure up to Kartik Ans: (i) Rs. 77,400 (ii) Rs. 55,600 (iii)Rs. 58,600
325 Approved by CDC, Nepal Monthly Statement 18. Prepare Monthly Statement of Expenditure of District Administration Office, Dolpa for the month of Ashoj, 2068 on the basis of the particulars given below. 2069(R) Budget Head No Budget Heads Annual Appropriation Expenditure up to Bhadra (Rs.) Expenditure of Ashoj (Rs.) 21111 22111 28142 22612 22711 31122 Salary Water and Electricity Home Rent Travelling Expenses Miscellaneous Expenses Machinery and Equipment 2,50,000 20,000 20,000 18,000 20,000 50,000 50,000 5,000 5,000 3000 5,000 20,000 25,000 3,000 1,400 500 1,000 7,000 Total 3,84,000 88,000 37,900 Additional Information. Advance of Rs. 5,000/- in not cleared. Show the followings: (a) Expenditure up to Ashoj (b) Balance of budget (c) Total budget release up to Ashoj (d) Net expenditure excluding advance Ans (a) Rs. 1,25,900, (b) Rs. 2,58,100, (c) Rs.1,25,900, (d) Rs. 1,20,900 19. Prepare Monthly Statement of Expenditure for the month of Kartik, 2067 showing the following information. 2068(S) i. Expenditure upto Kartik ii. Budget release iii. Net expenditure iv. Budget balance Following are the details of expenses on District Agriculture Development Office, Rautahat. Budget No Budget Heads Annual Appropriation Expenditure up to Ashoj (Rs.) Expenditure of Kartik (Rs.) 21111 21131 22311 22521 22711 31122 Salary Local Allowance Stationeries and Office Goods Production Materials and Services Miscellaneous Expenses Machinery and Equipment 1,80,000 24,000 12,000 8,000 10,000 6,000 45,000 6,000 4,000 3,000 4,000 2,000 15,000 2,000 1,000 1,000 2,000 500 Total 2,40,000 64,000 21,500 Additional Information: Uncleared production materials and services advance Rs. 5,000. Ans: i. Rs. 85,500, ii. Rs. 85,500, iii. Rs.80,500, iv. Rs. 1,54,500
326 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal 20. Prepare Monthly Statement of Expenditure of District Forest Office, Nuwakot for the month of Mangsir, 2074 from the following particulars. 2074(R) Budget No Budget Heads Annual Appropriation Expenditure upto Kartik (Rs.) Expenditure of Mangsir (Rs.) 21111 Salary 7,00,000 2,00,000 50,000 21133 Field Allowance 80,000 25,000 6,000 28142 House Rent 60,000 20,000 5,000 21123 Medical Treatment Expenses 25,000 8,000 2,000 31123 Furniture 70,000 22,000 4,000 31122 Machinery 35,000 13,000 3,000 Total 9,70,000 2,88,000 70,000 Additional Information: Uncleared advance Rs. 2,000. Show the followings: i. Expenditure upto Mangsir ii. Budget balance iii. Net expenditure excluding advance Ans: i. Rs. 3,58,000, ii. Rs. 6,12,000, iii. Rs. 3,56,000 21. Prepare Monthly Statement of Expenditure of District Education Office, Kaski for the month of Falgun, 2072 from the following particulars. 2073(R) Budget No Budget Heads Annual Appropriation (Rs.) Expenditure upto Magh (Rs.) Expenditure of Falgun (Rs.) 21111 Salary 8,00,000 4,00,000 60,000 28142 House Rent 3,00,000 1,70,000 25,000 22211 Fuel 2,00,000 80,000 12,000 31411 Land Purchase 1,00,000 60,000 – 31121 Vehicle 4,00,000 2,00,000 30,000 31122 Machinery 50,000 20,000 3,000 Total 18,50,000 9,30,000 1,30,000 Additional Information: Uncleared advance of vehicles Rs. 5,000. Show the followings from Monthly Statement of Expenditure: i. Total budget release upto Falgun ii. Total expenditure upto Falgun iii. Net expenditure iv. Balance budget Ans: i. Rs. 9,30,000, ii. 10,30,000, iii. Rs. 10,25,000, iv. 8,20,000
327 Approved by CDC, Nepal Specification Grid & Model Questions Monthly Statement S.N. Topics Knowledge and understanding Application (Practical Problem) Higher Ability Total marks No. of Questions Remarks Very short Short Long Short Long Short Long 1. Office Procedure 5 5 1 2. Filing 5 5 1 3. Trade 1 5 6 2 4. Financial Institutions 1 10 1 l 2 5. Trial Balance 5 5 1 Any 8 terms are given in one question 6 Final Account (Trading A/c, P & L A/c, Balance Sheet) 1 5+5 11 3 7. Government Accounting 1 5 6 2 8. Goshwua Voucher AGF No. 203 (Any five transactions) 1 10 10 1 One full format should be prepared 9-11 Bank Cash Book AGF No. 209 Budget sheet AGF No. 208 Monthly Statement of Expenditure AGF No. 210 (Any six transactions only) 1 10 5 16 3 Total 5 10 10 15 20 15 0 75 16 Specification Grid Subject :Office Management and Account (Optional Second) Class : 10 F. M.: 75 P.M. : 24
328 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Model-1 Subject: Office Practice and Accountancy Full Marks: 75 Time: 2:15 hrs Pass Marks: 24 GROUP ‘A’ A. Answer the following questions in one sentence. 5 × 1 = 5 1. Give full form of SAPTA. 2. What is dishonour of cheque ? 3. What is liability ? 4. Which office prepares accounting forms used in Government Office of Nepal ? 5. What is budget transfer ? GROUP ‘B’ B. Give short answer to the following questions. 8 × 5 = 40 6. What is report ? Describe in brief of any four type of report. 7. WhatisNumericalFilingSystem?Mentionfouradvantageandfourdisadvantages of it. 8. Why is home trade necessary ? Describe its any four procedures, orderly. 9. Why auditing is necessary in Government Accounting ? Differentiate in three points between internal audit and final audit ? 10. Which accounts are prepared for what purpose in Bank Cash Book ? 11. Prepare a Trial Balance of Shree Raj Khadya Stores for the fiscal year 2078/079 on last Asar, 2078 based on following particulars. Sales Sales Return Outstanding Expenses Furniture 2,00,000/- 60,000/- 25,000/- 80,000/- Purchases Creditors Advance Income Machinery 40,000/- 15,000/- 40,000/- 1,00,000/- Ans: Trial balance total = Rs. 2,80,000 12. Prepare profit and loss account of Hetauda Company Pvt. Ltd. for the fiscal year end of Ashadh 2078/079 according to the following transactions. Gross Profit Profit in Investment Commission Received Advertisement 1,85,000/- 11,000/- 4,000/- 15,000/- Salary Tax Interest Paid Audit Fees 81,000/- 7,000/- 20,000/- 10,000/- Ans: Net profit = Rs. 67,000 13. Prepare a balance sheet of Kumari Cenema Industries Private Limited for the fiscal year 2078/079 from the following particulars. Capital Cash in Hand Creditors Loan 5,00,000/- 50,000/- 3,70,000/- 1,00,000/- Bank Balance Prepaid Expenses Debtor Net Profit 7,00,000/- 40,000/- 4,10,000/- 2,30,000/- Ans: Balance sheet total = Rs. 12,00,000
329 Approved by CDC, Nepal Specification Grid & Model Questions GROUP ‘C’ C. Give long answer to the following questions: 3 × 10 = 30 14. What is Central Bank ? What is the name of the Central Bank of Nepal ? Describe any six functions of Central Bank. 15. Prepare Goshwara Voucher AGF No. 203 of District Administration Office, Dolpa from the following transactions. On 2078/4/5, budget realease from DTCO of Rs. 9,00,000. On 2078/4/15, the telephone charge Rs. 7,000/- for the month of Asar was paid. On 2078/4/17, storekeeper K. Pradhan was paid an amount of Rs. 1,20,000/- as an advanced for the purchase of office furniture. On 2078/4/27, 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 and paid the balance amount in the same day. On 2078/4/30, 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. 16. Prepare Monthly Statement of Expenditure for the month of Ashoj 2078, Office of District Development Committee, Rupandehi from the following particulars. Budget Head No Budget Heads Annual Appropriation Expenditure upto Bhadra Rs. Expenditure of Ashoj Rs. 21111 21123 28142 22612 31123 28911 Salary Medical Expenses House Rent Travelling Expenses Furniture & fixtures Current Contingencies Expenses 5,00,000/- 45,000/- 90,000/- 25,000/- 20,000/- 35,000/- 1,70,000/- 18,000/- 20,000/- 10,000/- 7,000/- 12,000/- 40,000/- 6,000/- 7,000/- – 2,000/- 5,000/- Total 7,15,000/- 2,37,000/- 60,000/- Additional information: Uncleared furniture advanced Rs. 4,000/-. Show the following: (i) Total budget release (ii) Total expenditure upto Ashoj (iii) Net expenditure less uncleared advance (iv) Budget balance (v) Percent of expenditure of each budget head out of the annual budget. Ans: (i) Rs. 4,07,000; (ii) Rs. 2,97,000; (iii) Rs. 2,93,000; (iv) Rs. 4,18,000
330 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Model-2 Subject: Office Practice and Accountancy Full Marks: 75 Time: 2:15 hrs Pass Marks: 24 GROUP ‘A’ A. Answer the following questions in one sentence. 5 × 1 = 5 1. Write the full form of SAFTA and SAPTA. 2. In which account we can’t get any interest? 3. How is the net loss determined? 4. What type of ink is used by internal auditor and final auditor? 5. Which accounts are used to keep the record of transaction of advance in Bank Cash Book? GROUP ‘B’ B. Give short answer to the following questions. 8 × 5 = 40 6. What is Tippani? Write any eight points to be considered while drafting it. 1+4 7. What is indexing? Explain any four importance of indexing. 1+4 8. Explain in brief, any five modes of payment used in trade. 5 9. Prepare Trial Balance of ABC Co., Palpa for the month of Ashad, 2078 from the following. 5 Particulars Amount Rs. Particulars Amount Rs. Capital Loose tools Loan of Maya Sales 1,20,000 105,000 80,000 50,000 Advance Salaries Bills receivable Trade Mark Creditors 25,000 60,000 85,000 25,000 Ans: Rs. 2,75,000/- 10. Prepare Balance Sheet of Om Shanti Stores, Bharatpur on the basis of following particulars as on 31st Ashad, 2078. 5 Additional Capital Short term Investment Reserve Net Profit 2,40,000 60,000 30,000 60,000 Loan to Asha Leaseholds assets Drawing Furniture 70,000 55,000 40,000 105,000 Ans: Rs. 2,90,000/- 11. Prepare Profit and Loss A/c of Thapa & Company, Chitwan on the basis of following particulars as on 31st Ashad, 2078. 5 Particulars Amount Rs. Particulars Amount Rs. Gross Profit Interest on Loan Commission received Discount on sales 35,000 35,000 15,000 25,000 Interest received Salary Depreciation Bonus received 36,000 45,000 15,000 25,000 Ans: Net Loss Rs. 9,000/- 12. Explain any five main objectives of New Accounting System. 5 × 1 = 5
331 Approved by CDC, Nepal Specification Grid & Model Questions 13. Introduce budget sheet and describe its three parts in brief. 2 + 3 = 5 GROUP ‘C’ C. Give long answer to the following questions: 3 × 10 = 30 14. What is Central Bank? Describe any eight functions of commercial bank. 10 15. Prepare the Goshwara Voucher (AGF No. 203) from the following transactions in the book of District Administration Office, Chitwan. 10 On 2079/4/2, received budget release from DTCO of Rs. 15,00,000 as equal to one sixth of Rs. 90,00,000. On 2079/4/8, advance for purchasing computer Rs. 50,000 is given to S.O. Mr. Narayan Sharma. On 2079/4/11, paidRs. 30,000 to Narayani Press againstthe printing expenses of Introductory Book of Office. On 2079/4/21, S.O. Mr. Narayan Sharma cleared the computer advance amount receiving bill of Rs. 55,000 and paid the rest amount. On 2079/4/29, paid Rs. 80,000 as the salary of staff deducting Rs.18,000 provident fund and Rs.2,000 income tax. 16. The following are the details of expenditure relating to District Administration Office, Gorkha. 10 Budget Head No Budget Heads Annual Appropriation Rs. Expenditure upto Bhadra Rs. Expenditure of Ashwin Rs. 21111 28142 22311 22313 22612 31123 Salaries House Rent Stationeries and Office Goods Book & materials Travelling Expenses Furniture & Fixtures 4,50,000 30,000 70,000 40,000 50,000 1,50,000 1,50,000 10,000 25,000 15,000 10,000 50,000 40,000 4,500 4,000 5,000 1,500 10,000 Total 7,90,000 2,60,000 65,000 Additional Information: Advance for furniture of Rs. 20,000 is not cleared. Required: Prepare the Monthly Statement of Expenditure for the month of Ashwin, 2078 showing the following. Expenditure upto Ashwin 3 Balance of budget 3 Net expenditure 1 Percent of expenditure of each budget head out of the annual budget. 3 Ans: (i) Rs. 3,25,000/- , (ii) Rs. 4,65,000/-, (iii) Rs. 3,05,000/-
332 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Model-3 PABSON SEE BOARD EXAM - 2078 Subject: Opt. II Accountancy Full Marks: 75 Time: 2:15 hrs Pass Marks: 24 Candidates are required to write their answers according to the instructions given. Attempt all questions. A. Give very short answer to the questions below. [5x1=5] 1. Write the full form of WTO. 2. When was Nepal Rastra Bank established? 3. How is Net Profit calculated? 4. Which institution does the final audit of government offices? 5. Mention any two parts of budget sheet. B. Give short answer to the questions below. [8x5=40] 6. What is Report? Mention any four points that should be considered while drafting a report. 7. What is Numerical filing? Write down any four advantages and disadvantages of it. 8. Why is trade necessary? Mention any two similarities and two dissimilarities between home trade and foreign trade. 9. Explain in brief any five objectives of New accounting system. 10. What is bank cash book? Explain any four importance. 11. Prepare a Trial Balance of Sarthak Furniture for the year 2076/77, from the following balances of ledgers. Particulars Amounts (Rs) Particulars Amounts (Rs) Capital 400,000 Purchase 6,00,000 Sales 12,00,000 House Rent 50,000 Salary 200,000 Building 800,000 Furniture 2,50,000 Loan 300,000 12. Prepare profit and loss account for the year ended 31”, Ashadh 2077 of Talbarahi Farm House from the following ledgers balances. Particulars Amounts (Rs) Particulars Amounts (Rs) Gross Loss 3,50,000 Interest received 90,000 Purchase discount 50,000 Advertisement 70,000 Commission received 60,000 Salary 70,000 Carriage outward 55,000 Stationary 25,000
333 Approved by CDC, Nepal Specification Grid & Model Questions 13. Prepare balance sheet of Thimi Enterprises for the month of 31stAshadh 2077 from the following ledgers balances. Particulars Amounts (Rs) Particulars Amounts (Rs) Share Capital 3,00,000 Debtors 2,00,000 Drawing 50,000 Land 1,25,000 Creditors 1,05,000 Net profit 1,00,000 Investment 1,00,000 Bills receivables 30,000 C. Give long answers to the following questions. [3×10 = 30] 14. Introduce Central Bank. Describe any six functions of Central Bank. 15. Prepare Goswara Voucher (AGF No. 203) on the basis of following transaction of District Agriculture Office, Baglung. (a) On 2077/04/01, Paid Rs. 10,000 for office materials. (b) On 2077/04/10, Rs. 50,000 is paid to Senior Officer, Mr. Tulsi as advance to purchase a computer. (c) On 2077/04/16, Senior Officer, Mr. Tulsi cleared his computer purchase advance by presenting the bill of Rs.45,000. (d) On 2077/04/19, Paid Rs. 15,000 to house owner as rent. (e) On 2077/04/25, Employee’s remuneration distributed for the month of Jestha by issuing a cheque of Rs.55,000 to the staff after deducting provident fund Rs. 5,000 and income tax Rs. 1,000. 16. Prepare statement of monthly expenditure (AGF No.210) of District Administration Office, Kathmandu for the month of Jestha, 2077 from the following. B.N. No. Budget Head Annual Appropriation Expenditure upto Baisakh Expenditure of Jestha 21111 Employee remuneration 3,50,000 50,000 35,000 22111 Water and Electricity 50,000 8,000 5,000 28142 House Rent 1,30,000 20,000 10,000 31123 Fruniture and Fixture 40,000 10,000 5,000 22511 Employee Training 30,000 12,000 3,000 Total Amount 6,00,000 1,00,000 58,000 Additional Information: Uncleared House rent advance Rs. 10,000 Required (a) Statement of expenditure for the month of Jestha.
334 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal Bibliography Agrawal, G. R. (2009) Principles of Management in Nepal, Kathmandu: MK Publishers and Distributors Arora M.N. (1994), Cost Accountancy Principles and Practices, New Delhi: Vikas Publishing House Pvt. Ltd. Arora, S.P., (1998) Office Organization and Management, New Delhi: Vikash Publishing House, Dangol R.M. Koirala Shalik Ram (Dr.).(2059) A Basic Course in Accountancy, Kathmandu: Taleju Prakashan K.C., Fatta, (2011) Principles of Business Studies, Kathmandu Vidyarthi Pustak Bhandar, Khanal J.R., Basnet D.K. and Others (2074), Accounting for Financial Analysis and Planning for BBS first year Kathmandu: Deepmala Publications Pvt. Ltd. Khanal J.R., Basnet D.K., (2074), Business Studies for Grade XI and XII Kathmandu: Deepmala Publications Pvt. Ltd. Munakarmi S.P., (2004), Accountancy and Auditing Kathmandu: Educational Enterprises (P) Ltd. Pandey I.M. (1999), Financial Management, New Delhi: Vikas Publishing House Pvt. Ltd. Sharma, R. R., (2011) Business Studies, Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd.
335 Approved by CDC, Nepal Specification Grid & Model Questions
336 Aakar’s Office Practice and Accountancy - 10 Approved by CDC, Nepal