Account 10

7. Prepare journal voucher (A.G.F. No. 10) 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 Nepal
Rastra Bank transfer.
b. On 2066/4/13, Rs. 15,000 was paid for furniture purchase through cheque
no. 012.
c. On 2066/4/14, issued a cheque no 013 of 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 by cheque no. 014 to
the section officer Shova Gurung in order to settle the TADA as shown in
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 deducated as provident fund and the balance
was distributed by issuing a cheque no. 015.

8. Prepare AGF No. 10 (Goshwara Voucher) of District Forest Office, Sarlahi on
the basis of following transactions. 2065(S)
a. On 2065-10-2, additional revolving fund Rs. 8,00,000 is received through
bank.
b. On 2065-10-3, established a petty cash fund of Rs. 5,000/- of the
responsibility of accountant Ramesh Tiwari through cheque no. 0271.
c. On 2065-10-4, Forestor Lalita Rai was paid Rs. 9,000/- for TADA advance
through cheque no. 0272.
d. On 2065-10-15, Rs. 25,000/- is paid for the purchase of machinery through
cheque no. 0273.
e. On 2065-10-21, the advance of Forestor Rai has been cleared by presenting
her TADA statement.
9. Prepare Goswara Vouchers (A.G.F. No. 10) on the basis of following
transactions of District Administration Office, Palpa : 2065(R)
a. On 2063/4/4, received bank order of Rs. 5,00,000 as a revolving fund.
b. On 2063/4/10, Rs. 25,000 paid for computer purchased through cheque
no. 00036.
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 through
cheque no. 00037.
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.

10. Prepare Goswara Vouchers (AGF No.10) on the basis of following transactions
of District Administration Office, Baglung. 2064(R)
a. On 2063/04/20, out of total salary of the month of Shrawan Rs. 2,00,000
was distributed after deducting Rs. 20,000 as provident fund by issuing
cheque no. 009.



250 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 251

b. On 2063/04/25, Rs. 15,000 was paid for purchasing office furniture through
cheque no.010.
c. On 2063/04/30, Nayab Subba Mr. Hari was paid an amount of Rs. 10,000
for travelling expenses in advance through cheque no. 011.
d. On 2063/04/31, petty cash fund of Rs. 5,000 was established through
cheque no. 012.
e. On 2063/04/32, Nayab Subba Mr. Hari submitted the expenditure bill of
travelling expenses with bank voucher of Rs. 1,000 and his advance was
cleared.
11. Prepare Goswara Vouchers (AGF No.10) on the basis of following transactions
of District Administration Office, Rukum. 2064(S)
a. On 2064/4/4, Rs. 4,00,000 was received as revolving fund through Rastiya
Banijya Bank transfer.
b. On 2064/4/6, Rs. 13,000 was paid for telephone bill through cheque no.105.
c. On 2064/4/7, Rs. 35,000 was paid as advance through cheque no. 106 to
Accountant Prem Shrestha for purchasing computer.
d. On 2064/4/25, the cheque no. 107 of Rs. 1,30,000 issued 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 2064/4/28, advance cleared by accountant Prem Shrestha for the
purchase of computer against the bill.

12. Prepare AGF No. 10 of District Administration Office, Siraha on the basis of
following transactions:
a. On 2072-4-2 received Rs. 20,00,000 as revolving fund through Nepal Rastra
Bank.
b. Rs. 8,00,000 paid for computer through cheque no. 103 on 2072-4-20.
c. Rs. 50,000 provided as an advance to Section Officer Harkaman Tamang
for travelling expenses through cheque no. 109 on 2074-4-22.
d. The salaries of Shrawan distributed from Rs. 5,00,000 deducing the amount
Rs. 50,000 for Provident Fund through cheque no. 122 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 issuing cheque no. 126.
SEE 2074 (R)
13. Prepare AGF no. 10 of District Agriculture Office, Rukum for the following
transactions:
a. On 2073-4-05 received Rs. 25,00,000 as additional revolving fund through
Nepal Rastra Bank.
b. On 2073-4-8 Rs. 40,000 was paid for purchasing office furniture through
cheque no. 0103.
c. On 2073-4-10 Section Officer Nita Sharma was paid Rs. 80,000 as an advance
for the purchase of computer for office by cheque no. 0104.




252 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 253

d. On 2073-4-20 petty cash fund of Rs. 15000 was established through cheque
no. 0105.
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 by cheque no. 0106.
SEE 2073(S)

14. Prepare AFG no. 10 of District Agriculture Office, Dolakha on the basis of
following transactions.
a. On 2073-7-20 received Rs. 4,00,000 as additional fund through Nepal Rastra
Bank.
b. On 2073-7-23 petty cash fund of Rs. 10,000 was established through cheque
no. 0135.
c. On 2073-7-24 accountant Mr. Siyaram Chaudhary was given advance Rs.
25,000 for furniture through cheque no. 0136.
d. On 2073-7-29 paid Rs. 30,000 as house rent to owner Mr. Netra Karki for
the month of Kartik through cheque no. 0137.

e. On 2073-7-30 the salary of the month Kartik Rs. 2,00,000 was distributed
deducting Provident Fund Rs. 20,000 through cheque no. 0138.

SEE 2073(R)
15. Prepare AFG no. 10 of District Education Office, Parbat on the basis of
following transactions.

a. On 2072-4-2 received Rs. 17,00,000 as revolving fund through bank transfer.
b. On 2072-4-07 paid Rs. 25,000 to Chaudhary Furniture Industry for the
purchase of furniture through cheque no. 0326.
c. On 2072-4-15 petty cash fund of Rs. 10,000 was established to the
responsibility of accountant Miss Dolma Sherpa through cheque no. 0327.

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 through cheque no.
0327.
e. On 2072-4-31 the deducted Provident Fund amount was deposited to
concerned account through cheque no. 0329. 2072(R)
16. Prepare AFG no. 10 on the basis of following transactions of District
Administration Office, Parbat .
a. On 2071-4-6 received Rs. 10,00,000 as revolving fund through Nepal Rastra
Bank.
b. On 2071-4-12 issued cheque no. 0950 of Rs. 5000 to establish petty cash
fund.






252 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 253

c. On 2071-4-14 Section Officer Mr. Rabin Gole was paid Rs. 35,000 for
travelling expenses advance through cheque no. 0957.

d. On 2071-4-20 Rs. 45,000 paid for computer purchase through cheque no.
0958.

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 through cheque no. 0959. 2071(R)
17. Prepare Goshwara Voucher (AGF No. 10.) of District Agriculture Development
Office, Chitwan according to the given transactions.
a. On 2070-4-3 received Rs. 15,00,000 as revolving fund through Nepal Rastra
Bank.
b. On 2070-4-10 JTA Mr. Suman Chaudhary was paid Rs. 1,50,000 in advance
for purchase of motorcycle through cheque no. 0721.

c. On 2070-4-23 house owner Mrs. Kabita Sharma was paid Rs. 45,000 for
home rent through cheque no. 072.

d. On 2070-4-26 Rs. 30,000 was paid to Surkhet Furniture Centre for the
purchase of furniture through cheque no. 0723.
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 through cheque no.
0724. 2070(R)

18. Prepare AGF No. 10 of District Education Office, Rukum for the following
transactions.

a. On 2069-4-4 Rs. 10,00,000 was received as revolving fund through RB
Bank transfer.
b. On 2069-4-6 Rs. 13,000 was paid for telephone bill through cheque no. 105.

c. On 2069-4-7 Rs. 35,000 was paid as an advance through cheque no. 106 to
accountant Prem Shrestha for purchasing computer.

d. On 2069-4-25 the cheque no. 107 of Rs. 1,30,000 issued 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)














Journal V
Aakar’s Office Practice and Accountancy - 10
255
254
254 Aakar’s Office Practice and Accountancy - 10 Bank Cash Bookoucher 255

9 Bank Cash Book
Unit








CDC Syllabus 7 Periods

9.1 Introduction
9.2 Accounts incorporated in it
9.3 Use and practice



Learning
Objectives

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.




Government of Nepal AGF No. 5
................ Office /Dept./Ministry .................
Bank Cash Book
For the Month of .......................
Budget
Cash A/c Bank A/c Expenditure Advance A/c Miscellaneous
Date Code Particulars A/c A/c Remarks
Dr. Cr. Dr. Cr. Cheque Balance Head Amount Given Cleared A/c Dr. Cr.
(Rs) (RS) (Rs) (Rs) No. (Rs) (Rs) (RS) Dr. Rs) Cr. (Rs) No. (Rs) (Rs)






1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17




Aakar’s Office Practice and Accountancy - 10
Journal V
255
254 Aakar’s Office Practice and Accountancy - 10 Bank Cash Bookoucher 255
254

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 for the 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 17 columns and 5 accounts viz. cash A/c, bank A/c, budget expenditure A/c,
advance expenditure A/c and miscellaneous A/c to record the necessary information.
It is prepared by AFG No. 5. 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
A bank cash book is the general ledger of the operating level offices of the 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.


256 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 257

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
The account maintained to keep the record of cash deposited into bank and withdrawal
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
The account is used to keep the record of advance provided and advance cleared.
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.



256 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 257

v. 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.

AGF No. 5 Remarks 17 16



Miscellaneous A/c Cr. Dr. A/c (Rs) (Rs) No. 15 14







Advance A/c Cleared Cr. (Rs) 13


Given Amt. Dr. (RS) (Rs) 12 11





Government of Nepal ................ Office /Dept./Ministry ................. Bank Cash Book For the Month of ....................... Budget Expenditure A/c Head Balance (Rs) (Rs) 10 9






Bank A/c



Cr. Cheq. No. (Rs) 8 7

Dr. (Rs) 6

Cash A/c Cr. Dr. (RS) (Rs) 5 4



Particulars 3




Code 2


Date 1



258 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 259

4. Specimen of Bank Cash Book
The details to be filled in different columns of a bank cash book are mentioned below:

i. In the ‘column l or date column’, the date of the transactions is mentioned.
ii. In the ‘column 2 or code no. column’, the bill number/post number/reference
number or the serial number of the transactions is mentioned.
iii. In the ‘column 3 or particulars column’, the short narration of the entry is mentioned.
iv. 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.
v. 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 is posted in column 7. In column 8,
cheque no. is mentioned and in column 9, the balance amount (Dr. Rs. - Cr. Rs) is
mentioned.
vi. 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.
vii. 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.
viii. In the ‘column 14,15 and 16 or A/c No., Dr. Rs. & Cr. Rs. of Miscellaneous A/c’, the
A/c number or code number, if any, is posted in the column 14, debit and credit
amounts are posted in the column 15 and column 16 respectively,
ix. The last column, ‘column 17 or remark column’ contains the signature or other
details of a transaction like advance related with the last year etc., if any.
The specimen of Bank Cash Book is given in the next page.
5. Considerations 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.



258 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 259

vi. In case of the posting of petty cash expenditures, it is recorded only at the time of
reimbursement.
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 totalled 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. Treasury Single Account (TSA)

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. Treasury Single Account (TSA)

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.


260 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 261

While Clearing Advance Under Different Conditions

i. When clearance is made by returning the whole amount, not being spent,
Dr. Cash/Treasury Single Account (TSA)
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. Treasury Single Account (TSA)

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. Treasury Single Account (TSA)
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.
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/Treasury Single Account (TSA)
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.



260 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 261

The entry is:
Dr. B.E. Travelling Expenses 22612 2,600
Dr. Cash/Treasury Single Account (TSA) 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. Treasury Single Account (TSA)
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

Posting is made, by debiting cash A/c and crediting miscellaneous A/c.
Dr. Treasury Single Account (TSA)
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. Treasury Single Account (TSA)
Cr. Budget Release

Posting is made by debiting bank A/c and crediting miscellaneous A/c.
iii. Common case
Dr. Treasury Single Account (TSA)
Dr. /Cr. Revolving Fund
Cr. Budget Release
And when, budget release bank order


262 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 263

iv. Salary Deductions
Dr. B.E. Salary
Cr. Personnel Provident Fund
Cr. Personnel Loan
Cr. Social Security Tax
Cr. Income Tax
Cr. Treasury Single Account (TSA)

Posting is made by debiting budget expenditure A/c and crediting miscellaneous 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. Treasury Single Account (TSA)

Posting is made by debiting miscellaneous A/c and crediting bank A/c.
v. Establishment of Petty Cash Fund,
Dr. Petty Cash Fund
Cr. Treasury Single Account (TSA)

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.

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


262 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 263

cashbook should also be closed at the end of each fiscal year. In the Nepalese government
offices, the fiscal year begins from the 1 of Shrawan each year and is ended at the end
st
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. Treasury Single Account (TSA)
Cr. Cash
ii. Closing of Petty Cash Fund
Dr. Treasury Single Account (TSA)
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. Treasury Single Account (TSA)

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, 2075.
i. 1, opening bank balance Rs. 3,50,000.
ii. l, Rs. 500 given to Petty Cashier Mohan Lama through cheque no. 123 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 by cheque no. 124.
iv. 10, paid Rs. 10,000 by cheque no. 125 to D R Simkhada, the President of Himalaya
Youth Society, as a grant.
v. 15, paid M/S Mohan Trader for the purchase of two heaters of Rs. 600 each by cheque
No 126.
vi. 18, paid by cheque no. 127 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, issued a cheque no. 128 of 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 by cheque no. 129.
ix. 29, issued a cheque no. 130 of Rs. 30,000 for the rent to the landlord.




264 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 265

Solution:
Government of Nepal AFG No. 10
District Administration Office, Jhapa J. V. N. ........................
Goshwara Voucher Date: ........................
Code No. Particulars L.F. B. E. Dr. Cr.
Head Amount Amount
ii. 075-10-1 Dr. Petty Cash Fund 500
Cr. Treasury Single Account (TSA) 500
(Being petty cash fund created under P.C. Mohan
Lama for the amount)
iii. 10-7 Dr. B.E. Salary 21111 120
Dr. B.E. Office Expenses 22311 220
Cr. Treasury Single Account (TSA) 340
(Being Petty Cash Fund reimbursed)
iv. 10-10 Dr. B.E. Current grant to person 26413 10,000
Cr. Treasury Single Account (TSA) 10,000
(Being grant given to Himalaya Youth Society as
an aid)
v. 10-15 Dr. B.E. Office Expenses 22311 1200
Cr. Treasury Single Account (TSA) 1200
(Being 2 heaters purchased for office use)
vi. 10-18 Dr. B.E. Furniture & Fixtures 29311 40,000
Cr. Treasury Single Account (TSA) 40,000
(Being furniture purchased for office use)
vii. 10-24 Dr. B.E. Production Materials & Services 22521 7,500
Dr. B.E. Travelling Expenses 22612 1,500
Cr. S.O. Mr. Gajendra Lal Pradhan clearance of
advance for Travelling Expenses and Production
Materials & Services 9,000
(Being advance cleared by S.O. Gajendra Lal
Pradhan against the bills submitted by him)
viii.a. 10-28 Dr. B.E. Salary 21111 77,000
Cr. Personal Provident Fund 14,000
Cr. Income Tax 1,100
Cr. Treasury Single Account (TSA) 61,900
(Being salary for the month of Magh paid by
deducting the personnel Provident fund and
income tax)
viii.b. 10-28 Dr. Personnel Provident Fund 14,000
Dr. Income Tax 1100
Cr. Treasury Single Account (TSA) 15,100
(Being the above deductions deposited in the
respective accounts)
ix. 10-29 Dr. B.E. House Rent 22121 30,000
Cr. Treasury Single Account (TSA) 30,000
(Being rent paid for the month of Magh)


264 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 265

Remark
AGF No. 5 Cr. (Rs) 14000 1100 15100

Miscellaneous Dr. (Rs) 500 14000 1100 15600




A/c No



Advance Expenditure A/c Cleared Given (Rs) (Rs) 9000 9000 -






Budget Expenditure A/c Amt. Head (Rs) No. 120 21111 220 22311 10000 26413 1200 22311 40000 29311 7500 22521 1500 22612 (7500) (1500) 77000 21111 30000 22121 167540 (9000)






Government of Nepal District Administration Office, Jhapa Bank Cash Book For the month of Magh, 2075 Bank A/c Balance Cheq. Cr. (Rs) No. (Rs) 350000 349500 123 500 349160 124 340 339160 125 10000 337960 126 1200 297960 127 40000 297960 236060 128 61900 220960 129 15100 190960 130 30000 159040












Cash A/c Dr. Cr. Dr. (Rs) (Rs) (Rs) - - -








Opening balance of bank Creation of Petty Cash Fund Youth Society Paid for purchase of heaters Paid for furniture & Fixtures S.O. Gajendra Lal Pradhan & Services PPF and income tax the respective accounts Rent paid to house holder
Particulars Reimbursement of petty cash expenses Current grant given to Himalayan advance was cleared for travelling expenses and Production materials Salary distributed after deducting PPF and income tax deposited into Total for the month of Magh









Code No. i. ii. iii. iv. v. vi. vii. viii. a. viii. b. ix.
Date 075- 10-1 1 7 10 15 18 24 28 28 29




266 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 267

Trial Balance of Bank Cash Book

S.N. Particulars L.F. Dr. Amount Cr. Amount
1. Bank A/c - 1,59,040
2. Budget Expenditure A/c 1,67,540 9,000
3. Advance Expenditure A/c - 9,000
4. Miscellaneous A/c 15,600 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, 2075.
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, issued cheque no. 001 of 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, issued cheque no. 002 for the purchase of stationery of Rs. 7,200.
16, issued cheque no. 003 of Rs. 6,500 for depositing the personnel fund amount deducted
from the staff salary of Shrawan.
20, issued cheque no. 004 for 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 by cheque no. 005.

Solution:
Government of Nepal AGF No. 10
District Administration Office, Gulmi
Journal Voucher
Code No. Particulars L.F. B. E. Head Dr. Amount Cr. Amount
075: Dr. Treasury Single Account (TSA) 3,50,000
ii. 5-4 Cr. Revolving Fund 1,25,000
Cr. Budget Release 2,25,000
(Being received a bank order for the budget
release and additional revolving fund)
iii. 5-8 Dr. Mr. Shakya Advance for
Travelling Expenses 22612 6,000
Cr. Treasury Single Account (TSA) 6,000
(Being advance given to Mr. Shakya for
official tour)




266 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 267

iv. 5-11 Dr. B.E. Machinery Equipment 29511 43,000
Dr. Treasury Single Account (TSA) 2,000
Cr. Mr. Suresh Poudel clearance of
advance for machinery equipment 45,000
(Being advance of Mr Suresh Poudel
cleared after incurring the expenditure)
v. 5-14 Dr. B.E. Office Expenses 22311 7,200
Cr. Treasury Single Account (TSA) 7,200
(Being stationery purchased)
vi. 5-16 Dr. Personnel provident fund 6,500
Cr. Treasury Single Account (TSA) 65,00
(Being provident fund of Shrawan
deposited into the concerned account)
vii. 5-20 Dr. B.E. Salary 21111 80,000
Cr. Treasury Single Account (TSA) 80,000
(Being Dashain allowance provided to
the office staff)
viii.5-30 Dr. B.E. Salary 21111 85,500
Cr. Personnel provident fund 14,000
Cr. Personnel provident fund Loan 7,000
Cr. Income Tax 1500
Cr. Treasury Single Account (TSA) 63,000
(Being salary of Bhadra distributed after
deducting the necessary deductions.)
Total: 5,80,200 5,80,200
Trial Balance
Code No. Particulars L.F. Debit Credit
1 Cash A/c - -
2 Bank A/c 3,52,000 1,62,700
3 Budget Expenditure A/c 2,21,700 45,000
4 Advance Expenditure A/c 6,000 45,000
5 Miscellaneous A/c 6,500 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.





268 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 269

AGF No. 5 R e m a Cr. r (Rs) k 125000 225000 14000 7000 1500 372500


Miscellaneous Dr. (Rs) 6500 6500




A/c No
45000 45000
Advance Expenditure A/c Cleared Given (Rs) (Rs) 6000 6000






Budget Expenditure A/c Amt. Head (Rs) No. 6000 22612 43000 (45000) 29511 7200 22311 80000 21111 85500 21111 221700 (45000)






Government of Nepal District Administration Office, Gulmi Bank Cash Book For the month of Bhadra, 2075 Bank A/c Balance Cheq. Cr. (Rs) No. (Rs) 21200 371200 365200 001 6000 367200 360000 002 7200 353500 003 6500 273500 004 80000 210500 005 63000 2,10,500 162700













Cash A/c Dr. Cr. Dr. (Rs) (Rs) (Rs) 350000 2000 352000 - -








Particulars Receipt of bank order for additional revolving fund and budget release Advance given to Mr. Shakya for Clearance of Mr. Suresh Poudel’s Payment made for stationery PPF: of Shrawan deposited into the Dashain allowance distributed Salary of Bhadra distributed after Total for the month of Bhadra
Opening bank balance travelling expenses machinery advance concerned account necessary deductions







Code No. i. ii. iii. iv. v. vi. vii. viii.


Date 075- 5-4 4 8 11 14 16 20 30




268 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 269

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. 5.
2072 (R), 2069 (S)
15. Explain the closing process of Bank Cash Book.
16. How is the posting of clearance of advance made under the 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.5.
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)






270 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 271

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)
24. Write the name of forms which are made provision under A.G.F. No. 5
and 8. 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 2076-4-4, received a bank order letter of Rs. 5,00,000 as the revolving
fund after deducting Rs. 500 as bank charges.
b. On 2076-4-10, a total of Rs. 85,000 was advanced to Officer Shyam Sharma
comprising Rs. 3,000 for TADA and Rs. 82,000 for furniture by cheque no.
0079.
c. On 2076-4-14, Petty Cash Fund was created after handing over a cheque
no. 0080 of Rs. 500 to Cashier Krishna Sharma.
d. On 2076-4-25, 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 2076-4-28, 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 by cheque No.0082. Deducted amounts
were deposited into the concerned accounts on the same day by cheque
No.0083 and 0084 respectively.
f. On 2076-4-30, reimbursement Petty Cash Fund through cheque no. 0085,
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 2076-5-1, the bank balance as revealed by Bank Cash Book at the end of
the last month was Rs. 34,500.
b. On 2076-5-3, Budget release and bank order for Rs. 2,00,000 has been
received as per the expenditure report of the last month.


270 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 271

c. On 2076-5-13, cheque no. 0025 for Rs. 50,000 was issued against purchase
of computer for official use.
d. On 2076-5-25, house rent of Rs. 5000 to house owner Mr. Shiva Sharma was
paid through cheque no. 0030.
e. On 2076-5-28, 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 through cheque no. 0031.
f. On 2076-5-30, the above deductions were deposited into the concerned
accounts through cheque no. 00035 and 00036 respectively.
Ans: Bank Balance: 1,61,900, B.E. Dr. 72,600,
Mis. A/c Dr. 3,300, Cr. 2,03,300

3. Make posting of the following transactions into the Bank Cash Book (A.G.F.
No. 5) of District Administration Office, Chitwan for the month of Shrawan,
2075.
a. On 2075/4/2, received Rs. 10,00,000 from the Office of Treasury and
Account Comptroller as initial revolving fund.
b. On 2075/4/6, provided Rs. 1,20,000 as advance to accountant Mr. Bal
Krishna Sharma for buying motorbike through cheque no. 001.
c. On 2075/04/16, amount paid to Kharidar Roshan Baniya for the
establishment of petty cash fund Rs. 4,000 through cheque no. 002.
d. On 2075/4/17, Gandaki Pustak Pasal was paid Rs. 32,500 for copy, pen
and files purchase through cheque no. 003.
e. On 2075/4/19, accountant Mr. Bal Krishna Sharma submitted goods and a
bill of Rs. 1,35,000 and cleared his advance by cheque no. 004.
f. On 2075/4/30, reimbursed the following expenses made from the petty
cash fund through cheque no. 005.
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.
5) of District Administration Office, Kathmandu for the month of Shrawan,
2074.
a. On 2074/4/2, 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 2074/4/5, provided Rs. 20,000 as advance to store keeper Mr. Krishna
Hamal for buying computer for office use through cheque no. 06301.
c. On 2074/4/12, paid Rs. 15,000 for telephone charge through cheque no.
06302.
d. On 2074/4/15, paid Rs. 5,000 for stationery through cheque no. 06303.





272 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 273

e. On 2074/4/16, 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 2074/4/24, paid salary Rs. 50,000 to the staff through cheque no. 06304.
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. 5) of District Administration Office, Palpa for the month of Bhadra,
2074.
a. On 2074/05/01, bank balance Rs. 1,50,000.
b. On 2074/5/2, 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 2074/5/5, Rs. 30,500 paid in advance to accountant Mr. Bhola Neupane
for the purchase of chair, table and rack through cheque no. 006.
d. On 2074/5/6, 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 by issuing cheque no 007.
e. On 2074/5/14, accountant Mr. Bhola Neupane submitted the goods and a
bill of Rs. 30,500 for clearance of advance.
f. On 2074/5/28, 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 (A.G.F.
No. 5) of District Administration Office, Kathmandu for the month of Ashwin,
2074.
a. On 2074/6/1, at the end of Bhadra, bank cash book showed debit balance
Rs. 10,50,000 and credit balance Rs. 6,40,000.
b. On 2074/6/5, Rs. 3,000 was given to store keeper Mr. Arjun Baruwal as an
advance for travelling expenses through cheque no. 008.
c. On 2074/6/16, issued cheque no. 009 of Rs. 5,000 for fuel for vehicle and
Rs. 10,000 for dress to the peon.
d. On 2074/6/18, paid Rs.15,000 for office materials through cheque no. 010.
e. On 2074/6/21, 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 2074/6/30, paid Rs. 27,000 by cheque no. 011 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




272 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 273

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 3-4-074.
b. Issued a cheque no. 01546 to Padma Machineries and Tools for Rs. 30,000
for a computer purchased for office use on 8-4-074.
c. A cheque for Rs. 1,000 was issued to Petty Cashier, Lekhanath Dahal for
the creation of Petty Cash Fund on 15-4-2074.
d. An advance for furniture of Rs. 25,000 was given to Nayab Subba Narayan
Kafle, by cheque on 22-4-074.
e. Paid for the purchase of a piece of land for the office Rs. 70,000 by a cheque
no. 01567 on 25-4-074.
f. Telephone expenses of Rs. 2,500 for the month was paid by cheque on 31-
4-074.
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 by cheque
no. 01569
h. On 31-4-074 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
8. Post the following transactions into the Bank Cash Book for the month of
Bhadra 2076.
a. The bank balance was revealed by the Bank Cash Book at the end of last
month was Rs. 45,000 on 2076-1-2.
b. Cheque no. 0123 for Rs. 25,000 was issued against the purchase of
typewriters for office use on 2076-1-3.
c. Budget release order and bank order for Rs. 200,000 has been received as
per the expenditure report of the last month on 2076-1-8.
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
2076-1-10.
e. Paid office rent Rs. 5,000 to the house owner Mr. Pashupati Gupta by
cheque no. 0124 on 2076-1-25.
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 by cheque no. 0125 on 2076-1-30.








274 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 275

The deductions were deposited into the respective accounts by different
cheques no. 0126 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 30 Poush, 2074.
th
SN Accounts Dr. Total Cr. Total
1. Cash A/c 40,000 40,000
2. Bank A/c 6,00,000 5,00,000
3. Budget Expenditure A/c 475000 -
4. Advance Expenditure A/c 50,000 30,000
5. Miscellaneous 25,000 6,00,000
Total 11,90,000 11,70,000
The following transactions were held during the month of Magh, 2074.
a. Payment made for the expenses of training to the office staff of Rs. 5,000 by
issuing a cheque no. 0235 on 2074-10-5.

b. An intimation of bank order has been received for Rs. 1,25,000 for the
expenditure made during the month of Poush on 2074-10-7.
c. Office rent of the months of Magh, Falgun and Chaitra paid by cheque @
Rs. 8,000 per month on 2074-10-16.
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 by cheque no. 0238 on
2074-10-28.
e. The deductions were deposited into the respective offices by separate
cheques on 2074-10-29.
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
2074-10-30.
Required: Bank Cash Book for the month of Magh, 2074.
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, 2075 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.




274 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 275

c. Issued a cheque of Rs. 1,000 to Kabir for salary advance through cheque
no. 1002.
d. Purchased an office typewriter worth Rs. 4,000 and paid by cheque no.
1003.
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. 2075
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 through cheque no.
001.
Shrawan-29, paid salary for the month of Shrawan Rs. 59,400 after
deducting Provident Fund of Rs. 13,200 through cheque no.
002.
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 by cheque no. 003.
Shrawan-31 issued a cheque of 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




















Budget Sheet
Aakar’s Office Practice and Accountancy - 10
277
276
276 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 277

10 Budget Sheet
Unit








CDC Syllabus 7 Periods Budget Formation process

10.1 Introduction, accounts incorporated Feedback establishment
Priority
in it and use/practice Estimation of total Discussion
expenditure
Preparation and
Authorization and selection of new projects
implementation
Proposal of
Final document new taxes
Learning
Objectives

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.



























Aakar’s Office Practice and Accountancy - 10
Budget Sheet
277
276
276 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 277

1. Introduction
Budget Sheet is one of the important books of account maintained by each Government
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. 8. It has 8 main heads and 79
sub-heads. 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.






278 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 279

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 subheads at the end
of each months.

3. Specimen of Budget Sheet
The specimen of Budget Sheet, AGF No. 8. is given in the end of this chapter.

4. Parts of Budget Sheet

Budget Sheet, AGF No. 8 has the following three parts:
i. Annual Appropriation of Budget
ii. Budget Release
iii. Budget Expenditure
i. Annual Appropriation of Budget
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 transfer the 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
It is the second part of budget sheet. It shows the total amount of budget release
received out of annual appropriation from the central level till the date of its preparation.
According to the prevailing system of budget release, it records the amount received
under preliminary and additional revolving fund, budget releases against the expenditure



278 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 279

made in the last month, and the supplementary budget release and inter-office and/or
inter-head transfer of budget, if any, under the concerned budget heads or subheads. The
journal voucher, AGF No. 10, must be prepared for each transaction related with this
part. It is closed annually, at the end of the month of Ashadh by depositing the surplus
into Freeze A/c in case of general budget but the development budget in not necessary
to deposit into freeze A/c. When it is necessary to show the opposite entry, the amount
should be mentioned in bracket in the concerned budget head column.

iii. Budget Expenditure
This is the third and the last part of budget sheet. It records the regular expenditure
made under each budget head. It records the budget expenditure according to the journal
voucher and the petty expenditures on the basis of journal voucher but only in case of
reimbursement. Similarly, the advance given is posted, as the budget expenditure for the
time being but the clearance is posted by mentioning the real expenditure openly in the
concerned column and the previously given amount inside the bracket just below the
expenditure amount in the same column. Other transactions, which are not related with
the budget heads are not posted in budget sheet. Thus, budget sheet is the budget ledger,
which with prepared under each head of budget excluding all other accounts like cash
account, bank account and other miscellaneous account except budget release. Budget
Sheet is closed monthly at the end of each month and annually at the end of the month of
Ashadh of each year.
5. Considerations /Procedures of Preparing Budget Sheet

i. Annual allocation of budget, supplementary budget, inter-head transfer of budget
and inter-office transfer of budget is posted into the annual appropriation part.
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.



280 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 281

6. Closing of Budget Sheet
Each operating level office is responsible towards the central level office for incurring
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

While making the monthly closing of budget sheet, the total amount of budget release
and the total amount of expenditure under each budget head and sub-head is determined
in each month. The amount of budget release up to the current month is fixed by totalling
the sum of the release of the present month with that of the sum of the release up to the
last of the previous month. Similarly, while closing the expenditure part at the end of each
month, amounts in each column are totalled, then the totals of each column up to the last
of the previous month are mentioned just below the totals of the current month and both
the totals are added together to find out the total on each head till the last of the current
month. In this way, this process is continued up to the last month of each fiscal year i.e.
till the last of Ashadh beginning from the month of Shrawan of the year.

ii. Annual 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.

7. Illustrative Problems and Solutions

Illustration - 1
Prepare Budget Sheet, AGF No. 8, for the month of Shrawan, 2075 for the following
transactions of the District Administration Office, Palpa.
5, Notice of bank order against preliminary revolving fund release equal to 1/6 of
th
the last year’s budget expenditure of 24,00,000 was received from the Office of the
Treasury and Comptroller as annual appropriation bill is still under consideration.
8, Issued a cheque of 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.



280 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 281

20, Issued a cheque no. 05380 of Rs. 50,000 against a purchase of motorcycle for office
use.
23, Rs. 20,000 was paid to Nayab Subba, Baburam Karki as advance for purchasing office
furniture.
25, The information relating to the following annual appropriation and a bank order
for the short preliminary revolving fund release of Rs.1,00,000 was received as the
Annual Appropriation bill has been passed.
Budget Head Budget Head Annual Appropriation
No. Approved
21111 Salary 20,00,000
21112 Local Allowance 50,000
22111 Water and Electricity 50,000
22112 Communication charge 50,000

22121 House Rent 1,00,000
22211 Fuel 25,000
22311 Office Expenses 1,25,000
22612 Travelling Expenses 1,50,000
29311 Furniture & fixtures 1,50,000
29411 Vehicle 3,00,000
Total 30,00,000

28, 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
by cheque no. 005.
31, 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 paid by cheque
after deducting Rs. 20,000 as provident fund, Rs.10,000 as personnel loan and
Rs. 2,000 for income tax.
Solution:
Journal Voucher

Code Particulars L.F. B. Head Dr. Amount Cr. Amount
No. No. (Rs.) (Rs.)
075- 4-5 Dr. Treasury Single Account (TSA) 4,00,000
Cr. Initial Revolving Fund 4,00,000
(Being preliminary revolving fund release received through
bank transfer)
075- 4-8 Dr. Petty Cash Fund 500
Cr. Treasury Single Account (TSA) 500
(Being Petty Cash Fund created under the responsibility of
Mr. Dhanapati, the Petty Cashier)



282 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 283

075-4-12 Dr. B.E. Office Expenses 22311 5,000
Cr. Treasury Single Account (TSA) 5,000
(Being paid for file, paper, pen and ink etc.)
075-4-17 Dr. S.O. Ramji Sharma
Advance for Travelling Expenses 22612 5,000
Cr. Treasury Single Account (TSA) 5,000
(Being amount given to Ramji Sharma as advance for an
official tour to Nepalgunj)

075-4-20 Dr. B.E. Vehicle 29411 50,000
Cr. Treasury Single Account (TSA) 50,000
(Being paid for motor-cycle purchase for office use)
075-4-23 Dr. N.S. Baburam Karki Advance for Furniture & fixtures 29312 20,000
Cr. Treasury Single Account (TSA) 20,000
(Being furniture advance given to N.S. Mr. Karki)

075-4-25 Dr. Treasury Single Account (TSA) 1,00,000
Cr. Revolving Fund Release 1,00,000
(Being additional revolving fund release received as the
annual appropriation bill is passed)
075-4-28 Dr. B.E. Travelling Expenses 22612 6,000
Cr. S.O. Ramji Sharma
Clearance of advance for Travelling expenses 5,000
Cr. Treasury Single Account (TSA) 1,000
(Being clearance given to S.O. Ramji Sharma on TADA with
necessary reimbursement)

075-4-31 Dr. B.E. Salary 21111 1,50,000
Dr. BE Local Allowance 21112 4,000
Cr. Personnel Provident Fund 20,000
Cr. Personnel Loan 10,000
Cr. Income Tax 2,000
Cr. Treasury Single Account (TSA) 1,22,000
(Being salary distributed for the month of Shrawan after
necessary deductions)
Total 7,36,500 7,36,500










282 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 283

AGF No. 8 29411 Vehicle 3,00,000 50,000 50,000



29311 Furniture & Fixtures 1,50,000 20,000 20,000


22612 Travelling Expenses 150000 5000 6,000 (5,000) 6,000



22311 Office Expenses 1,25,000 5,000 5,000


22211 Fuel 25,000


22121 22112 House Communication Rent Charges 1,00,000 50,000







Government of Nepal District Administration Office, Palpa Budget Sheet For the month of Shrawan, 2075 22111 21112 Water & Local Electricity Allowance 50,000 50,000 4,000 4,000 Preliminary and additional revolving fund 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











21111 Salary 20,00,000 1,50,000 1,50,000


30,00,000 Total 4,00,000 1,00,000 5,00,000 5,000 5,000 50,000 20,000 6,000 (5,000) 1,54,000 2,35,000 case of reimbursement.




Appropriation for the current Fiscal Year Particulars Payment against purchase of SO Ramji Sharma office use Ramji Sharma Shrawan a per the pay roll Note:
Budget Head No. Budget Heads Total release for the month of shrawan Preliminary Revolving Fund Received Additional Revolving Fund Received stationeries, files, paper, pen ink etc. Travelling Expenses advance given to Paid for purchase of motorcycle for Advance given to Nayab Subba Babu Ram Karki for furniture & Fixtures Clearance of TADA advance of SO Distrib












Date Ref. 2075 4-5 4-25 4-12 4-17 4-20 4-23 4-28 4-31



284 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 285

Illustration - 2
Post the following transactions into Budget Sheet of District Police Office, Bardiya.

Annual Budget Expenses of Expenses upto
Budget heads
(Rs) Marga (Rs.) Kartik (Rs.)
Salary 125000 10500 45000
Local Allowance 5000 350 1200
Water and Electricity 15000 1000 5000
Office Expenses 18000 2000 4000
House Rent 30000 4000 15000
Fuel 6000 500 2000
Furniture & Fixtures 9000 - 4000
Machinery and Equipments 30000 5650 -
2074 Poush 3, received budget release order and bank order for the actual expenditure of
Marga.
2074 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.
2074 Poush 18, additional revolving fund of Rs. 22,000 for purchasing machinery has been
received
2074 Poush 25, paid office rent by cheque for the month of Poush and Magh @ Rs. 1500p.m.

Government of Nepal AGF No. 8
District Police Office, Bardiya
Budget Sheet
For the month of Poush, 2074
Budget Head no. 21111 21112 22111 22121 22211 22311 29311 29511
Local Water & House Office Furniture & Machinery
Budget Heads Salary Fuel
Allowance electricity Rent expenses Fixtures equipment
Appropriation for the Current Fiscal Year 238000 125000 5000 15000 30000 6000 18000 9000 30000
Code
Date Particulars Total
No.
074
9-1 Budget released up to Marga 76200 45000 1200 5000 15000 2000 4000 4000 -
9-3 Budget release for the
reimbursement of expenses
of Marga 24000 10500 350 1000 4000 500 2000 - 5650
9-18 Additional revolving fund
release received for purchasing
machinery 22000
Total Rs. 122200 55500 1550 6000 19000 2500 6000 4000 5650
9-10 Clearance of to materials 5000 5000
advance of SO Mr. Dahal (4800) - - - (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 - 22000
Total expenditure till the
month of Marga 100200 55500 1550 6000 19000 2500 6000 4000 5650
Total expenditure till the end
of Poush 125400 55500 1550 6000 22000 2500 6200 4000 27650
Note: Since the additional revolving fund Rs. 22,000 has not been spent till the date, it may or may not be posted.



284 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 285

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, 2074.

Annual Appropriation Expenditure upto the
Budget heads
(Rs.) end of Kartik (Rs.)
Salary 360,000 1,20,000
Local Allowance 60,000 20,000
Water and Electricity 24,000 8,000

Other Rent 4,500 1,500
Repairs and Maintenance 12,000 4,000
Subsidy for financial corporation (capital) 60,000 20,000
Production Materials and Services 30,000 10,000
Travelling Expenses 48,000 16,000
Purchase of Land 45,000 15,000
Furniture and Fixtures 60,000 20,000
Vehicle 90,000 30,000

Machinery Equipments 90,000 90,000
Building Construction 3,00,000 1,00,000
Contingency Expenses 12,000 4,000
Mangsir 4, paid by cheque Rs. 10,000 to Bharatpur Saving and Credit Co-
operative Ltd. for purchase of equipments as subsidies.
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
by cheque 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 by cheque.

Mangsir 29, the bills of Rs. 65,000 of machinery with Rs. 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.















286 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 287

22911 Contingency Expenses 12000 4000 4000 4000 4000
AGF No. 8 29221 Building Construction 300000 100000 100000 15000 15000 100000 115000




29511 Machinery Equipment 90000 90000 90000 50000 70000 (50000) 70000 90000 160000


29411 Vehicle 90000 30000 30000 30000 30000

29311 Furniture & fixtures 60000 20000 20000 20000 20000


29111 Purchase of Land 45000 15000 15000 15000 15000


22612 Travelling Expenses 48000 16000 16000 2000 16000 18000

25521 25111 Production Materials and 30000 60000 10000 20000 10000 20000 10000 2000 2000 (2000) 10000 10000 20000 10000 30000
Services
Subsidy for financial
Government of Nepal Custom Office, Biratnagar Budget Sheet For the month of Marga, 2074 22321 22122 Maintenance of Constructed 12000 4500 4000 1500 4000 1500 4000 1500 4000 1500
Corporation (Capital)


Public Property

Other Rent




21112 22111 Water & Electricity 24000 60000 8000 20000 80000 20000 2000 2000 8000 20000 10000 20000
Local Allowance
21111 Salary 360000 120000 120000 120000 120000

1195500 Total 458500 458500 10000 2000 15000 52000 72000 (52000) 99000 458500 557500





Appropriation for the current fiscal year Credit Cooperative Ltd. building construction machinery and TADA Marga
Budget Head No. Budget Heads Particulars Release upto the end of Marga Total Assistance given to Bharatpur Saving & Payment of electricity changes Payment for wages and materials for Advance given to Mr. Upadhyaya for Clearance of advance of Mr. Upadhyaya Total expenditure of Marga Total expenditure till the end of Kartik Total expenditure till the end of










Date Code No. a. 074 8-4 b. 8-10 c. 8-18 d. 8-20 e. 8-29



286 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 287

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. 8? 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)
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 2075-4-3, due to the non receipt of budget allocation, from the District
Office of the Treasury and Comptroller, and initial revolving fund equal to
1/6 of the last year’s budget expenditure of Rs. 6,00,000 has been received.
th

288 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 289

b. On 2075-4-7, Rs. 12,000 was given to Khardar Pramod Gurung as advance
for purchasing books and directories.
c. On 2075-4-12, issued a cheque of Rs. 10,000 against the purchase of uniform
to the security guard and office drivers.
d. On 2075-4-16, issued a cheque of Rs. 500 to Sanu Thapa, the Assistant
Cashier for the creation of Petty Cash Fund.
e. On 2075-4-20, an advance of Rs. 20,000 was given to the Accountant
Ramesh Shah for purchasing office furniture.
f. On 2075-4-21, 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 2075-4-28, 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 075-4-31, the notice regarding the following appropriation, approved
for the current fiscal year, was received:
Annual Appropriation
Budget Head No. Budget Head
Approved
21111 Salary 4,45,000
21112 Local Allowance 12,000
21121 Uniform 30,000
22111 Water and Electricity 18,000
22112 Communication Charges 30,000
22211 Fuel 5,000
22311 Office Expenses 40,000
22313 Books & Materials Expenses 90,000
22612 Travelling Expenses 20,000
29311 Furniture & Fixtures 60,000
29411 Vehicle 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.

20. The following information and transactions are given of District
Administration Office, Kaski.
Budget Budget Heads Annual Expenditure of
Head No. Appropriation (Rs.) Shrawan (Rs.)
21111 Salary 8,52,000 66,000
21112 Local Allowance 36,000 6,000
22212 Repairs and Maintenance 24,000 2,000
22521 Production Materials & Services 60,000 10,000
22911 Contingencies Expenses 60,000 5,000
29411 Vehicle 70,000 15,000




288 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 289

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 and paid
by cheque.
c. Bhadra-20, issued a cheque of 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. Treasury Single Account (TSA) 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 21112 6,000
Cr. Personal Provident Fund 12,000
Cr. Treasury Single Account (TSA) 60,000
21. Prepare the Budget Sheet of District Administration Office, Bhojpur from the
information and transactions given below.

Annual Expenses of
B.H, No. Budget heads/Sub heads
Budget Rs. Sharawan
21111 Salary 2,60,000 30,000
22211 Fuel 40,000 2,000
22311 Office expenses 25,000 5,000
26411 Grant to public body 1,60,000 40,000
29111 Purchase of land 5,20,000 0
29311 Furniture & Fixtures 25,000 5,000
Total 10,30,000 82,000
Additional Information :
a. On 2074/5/2, received a bank order and budget release order equal to the
expenditure of Shrawan.
b. On 2074/5/10, advance was given to office assistant Miss Aarati for
purchasing furniture Rs. 15,000 by cheque no. 10011.
c. On 2074/5/22, paid Rs. 2,500 as expenditure of copy, pen and files by
cheque no. 10012.
d. On 2074/5/25, 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 2074/5/30, reimbursed the following expense made from the petty
cash fund through cheque no. 10014.
Ticket charges Rs.220, Newspaper Rs.350, Tea Expenses Rs. 100, Printing
Rs.550







290 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 291

22. Prepare the Budget Sheet of District Police Office, Parbat from the information
and transactions given below.
Expenditures
B.H. No. Budget heads/Sub heads Annual budget
up to Ashwin Kartik
21111 Salary 4,00,000 2,02,000 30,000
21113 Dearness Allowance 1,00,000 50,000 5,000
21121 Uniform 3,00,000 1,25,000 11,000
22531 Medicine 1,20,000 20,000 30,000
22711 Miscellaneous Expenses 2,50,000 7,000 18,000
29411 Vehicle 3,20,000 1,05,000 2,00,200
Total 14,90,000 5,09,000 2,94,200
Additional Information :
On 2075/8/2, received bank order and budget release of expenditure of Kartik.
On 2075/8/10, Rs. 5,000 was given to office assistant Miss Pooja for purchasing
bicycle in advance by cheque no. 0011.
On 2075/8/22, paid Rs. 1,200 as expenditure of tea and snacks by cheque no. 0012.
On 2075/8/25, office assistant Miss Pooja submitted the bill of Rs. 6,000 for
purchasing bicycle and cleared her account by cheque no. 0013.
On 2075/8/30, reimbursed the following expenses made from the petty cash
fund through cheque no. 0014.
Telephone charges Rs.520, Wages Rs. 160, coffee expenses Rs. 70, Repair Rs. 150.

23. Prepare budget sheet from the following information of District Police Office,
Bara.
Annual Expenditure of
B.H, No. Budget Heads
Budget Rs. Bhadra (Rs)
21111 Salary 150,000 20,000
22122 Other Rent 25,000 5,000
22311 Office Expenses 5,000 1,000
22531 Medicine 8,000 1,000
22313 Books and Materials Expenses 2,000 500
29311 Furniture & Fixtures 70,000 25,000
29511 Machinery and Equipment 90,000 80,000
Total 3,50,000 1,32,500
a. Budget release order as well as bank order received for the expenses of
Bhadra on 2075-6-8.
b. A cheque of Rs. 1,81,000 was issued after deducting Rs.2,000 as provident
fund contribution for the distribution of salary on 2075-6-12.
c. Cheque of Rs. 150 was issued on 2075-6-16 for the reimbursement of the
following petty cash expenses.
Postage - Rs.70
Miscellaneous - Rs.30
Magazines - Rs.10
Printing - Rs.40


290 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 291

d. A cheque of Rs.70,000 was issued to Syakar Company on 2075-6-17 as an
advance for the supply of generator.
e. A cheque of Rs. 15,000 is issued against the purchases of furniture on 2075-
6-20.
f. Advance given to Syakar Company was cleared on 2075-6-25 by paying a
cheque of Rs.5,000 for the balances on receipt of generator worth Rs.75,000.

24. On the basis of the following information regarding annual appropriation and
position of expenditure, prepare Budget Sheet for the month of Magh,2075.
a. The annual appropriation and the expenditure till the end of Poush are as
given below.
Budget Budget Heads Annual Expenditure
Head No. Appropriation (Rs.) upto the Poush
21111 Salary 1,80,000 90,000
21112 Local Allowance 18,000 10,000
22121 House Rent 72000 36,000
22311 Office Expenses 50,000 20,000
22612 Travelling Expenses 15,000 8,000
22711 Miscellaneous Expenditure 5,000 3,000
29221 Building Construction 1,20,000 75,000
29311 Furniture & Fixtures 60,000 40,000
29411 Vehicle 80,000 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.



Budget Sheet
Aakar’s Office Practice and Accountancy - 10
293
292
292 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 293

11 Monthly
Unit
Statement






CDC Syllabus 7 Periods Bank Reconciliation

11.1 Introduction and types
11.2 Use/practise of statement of Difference - Rs. 2600
expenditure ??? ??? Bank
Cash Book Balance – Bank Statement Balance
Rs. 15,000 Rs. 17,600
Learning
Objectives

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.




AGF No. 13
Government of Nepal
Office/Department/Ministry
Statement of Expenditure
For the month of Chaitra, 2074
Expenditure of the Release upto the end Budget Budget Annual Appropriation Expenditure upto the Balance Budget
month of Chaitra of Chaitra Head No. Heads end of Chaitra
60,000 540,000 21111 Salary 7,90,000 6,00,000 1,90,000
7,000 30,000 21123 Medical Allowance 50,000 37,000 13,000
1,000 14,000 22111 Water and Electricity 20,000 15,000 5,000
3,000 16,000 22112 Communication Charges 24,000 19,000 5,000
5,500 44,000 22121 Rent 72,000 49,500 22,500
3,000 12,000 22211 Fuel 18,000 15,000 3,000
6,000 28,000 22311 Office Expenses 45,000 34,000 11,000
- 5,000 22711 Miscellaneous Expenses 5,000 5,000 -
- 1,50,000 29111 Purchase of Land 1,80,000 1,50,000 30,000
1,00,000 3,00,000 29221 Building Construction 4,50,000 4,00,000 50,000
2,00,000 - 29411 Vehicle 2,00,000 2,00,000 -
12,000 88,000 29511 Machineries and Equipments 1,30,000 1,00,000 30,000
3,97,500 12,27,000 19,84,000 16,24,500 3,59,500
- 5,23,000 Revolving fund balance
3,97,500 17,50,000 _ Total 19,84,000 16,24,500 3,59,500
Position of Fund
As at the end of Chaitra, 2074
Total Release upto the end of Chaitra 17,50,000 Bank Balance 94,200
Total Expenditure upto the end of Chaitra 16,24,500 Cash Balance 1.300
1,25,500 1,15,500
Unclear Advance (2,00,000) Loan Payable(-) Nil
Actual Expenditure 14,24,500 Loan Receivable (+) 10.000
1,25,500
Submitted by: Position Date: .................................
Aakar’s Office Practice and Accountancy - 10
Budget Sheet
Position
Date: .................................
Approved by:
292 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 293
293
292

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) Statement of Expenditure (AGF No. 13) (ii) Monthly Advance Expenditure
Report (AGF No. 14), (iii) Bank Reconciliation Statement (AGF No. 15), (iv) Monthly
Statement of (AGF No. 9) and (v) Monthly Statement of Security Deposit (AGF No. 19).

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
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.

iv. Helps to Evaluate
They are the main administrative tools for evaluation of the financial activities of the



294 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 295

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 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 Revenue (AGF No.9)
B. Monthly Statement of Expenditure (AGF No.13)
C. Monthly Statement of Advance Clearance (AGF No.14)
D. Bank Reconciliation Statement (AFG No.15)
E. Monthly Statement of Security Deposit (AGF No 19)
A. Monthly Statement of Revenue (AGF No 9)
This report is to be prepared monthly by the revenue collecting officer. This report
shows the heads and the amount of revenues collected by the respective office during
a particular month. It is prepared as per the format prescribed under AGF No.9. An
example is given below:
Government of Nepal AGF No. 13
Ministry of Labour & Transport Management
Transport Management Office, Kathmandu
Monthly Statement of Revenue
For the month of 2076, Bhadra
Revenue Head Total income Current month’s Total Cash
S. N. Revenue Head
Classification upto last month income income balance
l. 1-1-5-40 Vehicle charges 20,000 12,000 32,000
2. 1-1-6-20 Fine Penalties 10,000 - 10,000
3. 1-1-12-20 Miscellaneous 6,000 2,000 8,000
Total 36,000 14,000 50,000
Position of Fund
Total Income Rs.50,000
Amount deposited into bank out of cash receipts Rs.45,000
Cash balance Rs. 5,000
___________ ___________
Chief Account Office Chief





294 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 295

B. Monthly Statement of Expenditure (AGF No. 13)
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. 13, Monthly Report of Uncleared Advance,
AGF. No. 14, Bank Reconciliation Statement, AGF No. 15 are the most important
statements or reports.
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, 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.

Statements of Expenditure are prepared in the format prescribed under AGF No. 13 by
obtaining necessary information from subsidiary ledgers like, Revolving Fund 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.

Objectives/Importance of Monthly Statement of Expenditure
Statement of expenditure 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. 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.
Considerations of Preparing the Monthly Statement of Expenditure

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 statement of expenditure.
The important considerations of preparing a Statement of Expenditure are mentioned
below:



296 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 297

Government of Nepal AGF No. 13
...................... Office, ......................
Statement of Expenditure
For the month ...........................
i. The name of the office should be clearly mentioned on the top middle of the format
along with the month and the year, on which it is prepared (it is designed as AGF
No. 13).
ii. The expenditure for the current month, the expenditure upto the current month (by
summing up the expenditure of the current month and the expenditure upto the last
month) and budget release upto the end of the current month (the expenditure up to
the previous month) should be determined along with the annual appropriation so
that, the balance of budget upto the end of the current month can be ascertained.
iii. The uncleared portion of advance should be identified in order to find out the net
expenditure by deducting it from the total expenditure upto the end of the current
month. Thus, the advance account should be prepared and closed before preparing it.
iv. The balance of cash in the bank as well as in the office should be found out by closing
the Bank Cash Book and Petty Cash Fund.
v. Finally, the name signature and designation of the person submitting and approving
it should be mentioned along with the submission and approval date respectively.
Parts of the Statement of Expenditures

Statement of Expenditures prepared, as per the Auditor General Form No. 13, comprises
of two parts, which are;
a. Section depicting the status of the budget
b. Section depicting the status of the fund
a. Section depicting the Status of the Budget

Release up to the Expenditure upto
Expenditure of ......... (Cumulative Budget Head (B.E.) Annual Appropriation the end of ....... Balance upto the
the ......... (current total till the current No. Budget Heads of budget (Cumulative total till end of ..............
month) (current month)
month) the current month)
(1) (2) (3) (4) (5) (6) = (1 + 2) (7) = (5 - 6)
Rules of making Section depicting the status of the budget are:
1 The first column is for recording the expenditures incurred under various heads of
expenditures for the current month.
2. The second column records the cumulative total of the budget release received
under various budget headings and sub-headings upto the end of the current month.
3. The third column states the budget head (B.E.) number.
4. The fourth column contains the budget headings and sub-headings,
5. In the fifth column, amount of annual appropriation of the budget for the particular
office for a specified heading or sub-heading is recorded.
6. In the sixth column, cumulative total expenditures upto the end of the current month
is recorded,
7. In the seventh column, the balance of allocated budget for the office yet to be received
from the Central Level Office is recorded. The amount for the seventh column is
calculated by deducting the total cumulative budget expenditures upto the end of
current month (Column 6) from the annual appropriation of the budget (Column 5).



296 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 297

b. Section Depicting the Status of the fund
Position of Fund
as at ................ (date).
Total release upto ............ (Date) ............ Rs . ............ Bank Balance Rs. ...............
Total Expenditures upto ............ (Date) ............ Rs. ............ Cash Balance Rs. ...............
Uncleared amount of advances Rs. ............... Total Balance Rs. ...............
Actual expenditures after adjusting the advances Rs. .......... Loan payable (-) Rs. ...........
Loan receivable (+) Rs. .......
The second part of the Monthly Statement of Expenditure report is designed to reveal the
status of the fund available with a particular office. This part shows the cash and bank
balance, amount of total budget release and total expenditures till the end of the current
month, advance given but not yet cleared and amount of loans payable or receivable.
Rules of Making Section Depicting the Status of the Fund are:
i. Total budget release/received upto the current month. The amount of total imprest/
revolving fund release upto current month is mentioned. It can be calculated by
using this formula:
Total release upto current month
= Total expenditure to date + bank balance + cash balance + loan provided +
deposit provided – deposit received – loan received

ii. The total expenditure upto current month. It is calculated as:
Total expenditure upto current month
= The total expenditure + total release received upto the end of current month

iii. Bank balance is determined by using the following formula:
Bank balance
= Total release upto the current month – total expenditure – petty cash fund
(cash balance) – loan provided + deposit received + loan received)

iv. Cash balance is determined by using the following formula:
Petty cash fund (cash balance)
= Total release upto the current month – total expenditure – bank balance –
loan provided + deposit received + loan received

v. Uncleared advance: The amount of unclear advance is determined through advance
account.
vi. Net expenditure: It can b e calculated as:
Net expenditure
= Total expenditure till the current month – unclear advance

vii. Total balance can be calculated as:
Total balance
= Total release – total expenditure + payable – receivables





298 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 299

viii. Loan payable: Amount taken from other office is known as loan payable. It can be
calculated as:
Loan payable
= Total expenses upto current month – total release received + cash balance +
bank balance + loan/deposit provided

ix. Loan receivables is calculated as:
Loan receivable
= Total release – total expenditures – bank balance – cash balance + loan taken

x. Submitted by: The name and signature of the person submitting if for final approval
along with date is given.
xi. Approved by: The name and signature of ther person accepting and approved as
final approval along with date is given.
xii. The common rule is

TR = TE + BB + CB or PF + L.P + A/c P + A/c R - L.R
Where,
T.R. = Total Revolving fond L.P. = Loan provided
B.B = Bank Balance A/c R. = Account receivable
C.B. = Cash Balance L.A. = Loan Receivable
P.F. = Petty Cash Fund A/c P = Account payable

Generally, bank balance, cash balance and budget expenditure amount should be equal
to the budget release. In the event of any difference, the difference will be equal to the
advance or loan given but not yet cleared or received.
Illustration - I
Based on the following information regarding the budget and expenditure, prepare the
Statement of Expenditure for the month of Ashwin, 2075.
Annual Expenditure of
Budget Expenditure upto
Head No. Budget Head Appropriation the month of Bhadra the month of
Approved Ashwin
21111 Salary 5,20,000 85,000 37,000
21112 Local Allowance 50,000 10,000 2,500
22112 Communication Charge 60,000 8,000 5,000
22121 House Rent 2,00,000 40,000 6,000
22211 Fuel 35,000 6,000 3,000
22311 Office Materials 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
22911 Contingency Expenses 50,000 7,000 4,000
29311 Furniture & Fixtures 1,20,000 50,000 12,000
29611 Public Construction 70,000 15,000 3,500
Total: l4,00,000 2,75,000 90,000



298 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 299

Additional Information:
1. Petty Cash Fund, balance at the end ofAshwin, 2075 was Rs. 500.
2. Bank Balance Rs. 1,15,000.
3. Amount received on Revolving Fund to date Rs. 4,80,500.

Solution:
Government of Nepal AGF No. 13
........... Office/Dept./Ministry
Statement of Expenditure
For the month of Ashwin, 2075
Expenditure Release till B.E. Annual Expenditure Balance of
of the month to the end Head Budget Heads Appropriation upto the end Budget upto
of Ashwin of Ashwin No. of Budgets of Ashwin the end of
(Rs.) (Rs.) (Rs.) (Rs.) Ashwin (Rs.)
37,000 85,000 21111 Salary 5,20,000 1,22,000 3,98,000
2,500 10,000 21112 Local Allowance 50,000 12,500 37,500
5,000 8,000 22112 Communication Charge 60,000 13,000 47,000
6,000 40,000 22121 House Rent 2,00,000 46,000 1,54,000
3,000 6,000 22211 Fuel 35,000 9,000 26,000
4,000 25,000 22311 Office Materials 1,00,000 29,000 71,000
7,000 16,000 22312 Feeding Materials 1,00,000 23,000 77,000
1,000 2,000 22313 Books & Magazines 20,000 3,000 17,000
(Adv) 5,000 11,000 22612 Travelling Expenses 75,000 16,000 59,000
4,000 7,000 22911 Contingency Expenses 50,000 11,000 39,000
12,000 50,000 29311 Furniture & Fixtures 1,20,000 62,000 58,000
3,500 15,000 29611 Public Construction 70,000 18,500 51,500
90,000 2,75,000 Total 14,00,000 3,65,000 10,35,000
2,05,500 Revolving fund balance – – –
90,000 4,80,500 Total Revolving Fund Release 14,00,000 3,65,000 10,35,000


Position of Fund
As on the end of Ashwin, 2075
Total Release upto the end of Ashwin, 4,80,500 Bank Balance 1,15,000

Total Expenditure upto the end of Ashwin, 3,65,000 Cash Balance 500
1,15,500 1,15,500
Unclear Advance: (5,000) Loan Payable (-) ..................

Loan Receivable ..................
1,15,000
Actual Expenditure (3,65,000–5,000) = 3,60,000
(Net of uncleared advance)
Submitted by: ...................... Position ................................ Date: ...............................

Approved by: ....................... Position ............................ Date: ..................................


300 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 301