Account 10

Illustration - 2
Prepare an expenditure report for the month of Chaitra, 2074 from the given information below.

Annual Expenditure upto the Expenditure during
Budget Heads
Appropriation end of Falgun the Month of Chaitra
Salary 7,90,000 5,40,000 60,000
Medical Allowance 50,000 30,000 7,000
Water and Electricity 20,000 14,000 1,000
Communication Charges 24,000 16,000 3,000
Office Expenses 45,000 28,000 6,000
House Rent 72,000 44,000 5,500
Fuel 18,000 12,000 3,000
Miscellaneous Expenses 5,000 5,000 -
Purchase of Land 1,80,000 1,50,000 -
Vehicle 2,00,000 - 2,00,000
Machineries & Equipments 1,30,000 88,000 12,000
Building Construction 4,50,000 3,00,000 1,00,000
Additional information:
i. Total Revolving Fund upto the end of Chaitra was Rs. 17,50,000.
ii. It was shown Rs. 20,000 cash balance and Rs. 1,300 petty cash fund balance at the end
of Chaitra.
ui. Rs. 10,000 is to be returned from a nearby office.
iv. An LC opened on 5 of Chaitra of Rs. 2,00,000 in the name of Xinha Co. China for
th
purchasing a car for office use. The car has not been received yet.
Solution:
Government of Nepal AGF No. 13
Office/Department/Ministry
Statement of Expenditure
For the month of Chaitra, 2074
Expenditure Release upto Budget Expenditure
Annual
of the month the end of Head Budget Heads Appropriation upto the end of Balance
Budget
of Chaitra Chaitra No. 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 House 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 Total Rs. 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


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

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 21,300
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 1,25,500
Submitted by: Position Date: .................................
Approved by: Position Date: .................................

C. Statement of Advance Clearance (AGF No.14)
Statement of Advance Clearance provides information about the advances. It
includes name of the parties availing the advance, date of advances given, whether such
an advance has been overdue or not, etc.
The amount of outstanding advance or revealed by the statement of expenditure should
match with the total amount of outstanding advances depicted by this statement. The basic
purpose of this statement is to get information about the amount of outstanding advance
related with various parties in the reporting month. The specimen of the statement of
expenditure has been given below:
AGF No. 14

Official Contractor Letter of Institutional Total
Name of the person availing advance
credit
employee
personal
Date of Advance Designation Budget Head No. Date expired Due Upto last F/Y Date expired Due Upto last F/Y Date expired Due Upto last F/Y Date expired Due Upto last F/Y
S.N. Current F/Y Current F/Y Current F/Y Current F/Y















D. Bank Reconciliation Statement (AGF NO. 15)
New Accounting System gives emphasis on banking dealings. All the transactions of
a government office are operated through bank except the petty cash expenditures which
are made from the Petty Cash Fund. Most of the receipts are made through bank transfer
i.e. through Nepal Rastra Bank and any receipts made in cash are immediately deposited
into the bank. The payments are made through cheque. The transactions related with bank



302 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 303

are recorded into the Bank Cash Book and it shows the bank balance at the end of each
month. Bank Cash Book is a general ledger of an operating level office and, thus it also
shows the balances of other accounts like cash, budget expenditure, advance expenditure
and miscellaneous, etc. In the case of Bank Reconciliation Statement, it is discussed here
about bank balance shown by Bank Cash Book to reconcile with the balance shown by
Pass Book.
On the other part, bank also maintains the accounts of each office separately to record its
deposits and withdrawals made from time to time. It is known as bank statement with
client’s account or Pass Book in common term.
The Bank Cash Book maintained by an office and the Pass Book maintained by the bank
in the name of the office record the same transactions. Thus, the two balances should tally.
It means the Dr. balance of Bank Cash Book should tally the Cr. balance of Pass Book and
vice versa. At the end of each period, a month, the balances of these two books may differ
due to some reasons. The reason may be:
Cheque issued but not presented till the date.
Cheques deposited but not collected till the date.
Errors in bank cash book or pass book.
Undercast or overcast in bank cash book or pass book.
Bank charges commission etc. directly charged by the bank for its services, etc. but
not recorded in bank cash book.
Revenue collected directly by bank but not recorded in bank cash book.
A statement is prepared at the end of each month under operating level accounting
according to the format designed to AGF No. 15 to match the balances of Bank Cash
Book and Pass Book by identifying and adjusting the causes of difference between them.
This statement is known as Bank Reconciliation Statement. Hence, a Bank Reconciliation
Statement may be defined as a statement prepared by an operating level office under
the prescribed format to match the balances shown by Bank Cash Book and Pass Book
by adjusting the causes of differences between them. It is prepared to control over the
leakage and corruption of fund and to overcome the confusions in the dealings between
the office and its bank. It is prepared as AGF No. 15 format.
Government of Nepal AGF No. 15
Office/Department/Ministry
Bank Reconciliation Statement
For the month of ........................
Particulars Details Amount
Bank Balance as per Pass Book
Add: Deposits in transit
Undercast in Cr. side of Bank Cash Book
Less: Cheque issued but not presented
Revenue directly collected by bank
Balance as per Bank Cash Book
Submitted by: ..................... Position:.................... Date: ....................
Approved by: ..................... Position: .................... Date: ....................



302 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 303

Illustration - 3
Prepare Bank Reconciliation Statement, AGF No. 15 from the following information Bank
balance as per Bank Cash Book on 30 Paush, 2074 was Rs. 39,000 while comparing to the
th
Pass Book the following were found.
a. The office issued the following cheques on 25 of Paush, 2074 was not presented into
th
the bank for payment,
i. Cheque no. 12345 to Raymond Furnitures, Kapan of Rs. 7,000.
ii. Cheque no. 12346 to Royal Stationeries, Thamel of Rs. 3,000.
b. An amount of Rs. 900 undercasted in the Cr. side of Bank Cash Book.
c. The following amounts were deposited by the office on 28 Poush but were not
th
collected till the end of the month.
i. Excess amount over the advance given to Officer S.N. Pandit Rs. 500.
ii. Loan advanced to nearby office received back Rs. 8,000.
iii Additional Budget Release received from the office of the Treasury and
Comptroller Rs. 25,000.
d. The balance shown by Bank Pass Book at the end of the month was Rs. 14,600.
Government of Nepal AGF No. 15
Office/Department/Ministry
Bank Reconciliation Statement
For the month of Poush, 2074
Bank Balance as per Bank Pass Book Rs. 14600
Add: Amount undercasted in Cr. side of Bank Cash Book 900
Amount deposited but not collected:
Excess over advance returned 500
Loan advanced returned back 8,000
Additional budget release received 25,000 Rs. 33,500 Rs. 34,400
Rs. 49,000
Less: Cheques issued but not presented for payment
Cheque no. 12345 to Raymond Furniture Rs. 7,000
Cheque no. 12346 to Basyal Stationeries Rs. 3,000 Rs. 10,000

Balance as per Bank Cash Book Rs. 39,000
Submitted by: ..................... Position: ..................... Date: .....................
Approved by: ..................... Position: ..................... Date: .....................

E. Monthly Statement of Security Deposits (AGF No. 19)
Every office should prepare monthly reports regarding the transaction related to
security deposits and present to the concerned Ministry/Departments/Offices. While
preparing the report, a separate Bank Reconciliation Statement (AGF No.15) related with
security deposit account has to be prepared. It is prepared as per the format prescribed
under AGF No.19. An specimen is given below:





304 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 305

Government of Nepal AGF No.19
............... Office/Department/Ministry
Monthly Statement of Security Deposit
From................. to ....................

Total security deposits till the last month: Rs. ....................
Security deposits of the current month: Rs. ....................
Total Rs ....................
Refund of security deposits after the completion of job Rs. ....................
Security deposits converted to revenue Rs. ....................
Total Rs. ....................
Net balance of security deposits Rs. ....................
Position of Fund: Account No .............. Bank balance ................. Cash Balance .............
Submitted by .................... Designation .................... Date ....................
Approved by .................... Designation .................... Date ....................

Glossary

Rectify : to correct and verify
Reconciliation : the way of correction of balance of passbook and cash book
Surplus budget : more amount of budget
Loan payable : loan borrowed but not paid yet
Octroi : tax on various goods brought into a town
Total release : total budget release from the control level
Unclear advance : advance given but not cleared yet

Exercise



A. Answer the following questions in one sentence.
1. What are monthly statements? 2071(S)
2. What is meant by monthly statement?
3. Write the AGF.No. of Monthly Statement of Revenue. 2069(R)
4. Write the names of sections written in Statement of Expenditure.
5. What is statement of outstanding advance?
6. Write the AGF No. of Bank Reconciliation Statement.

B. Give short answers to the following questions.
7. What is Monthly Statement in Government Accounting? Explain any four
points of importance of Monthly Statement.
8. Explain the types of Monthly Statement.
9. What is Statement of Expenditure, AGE No. 13? Mention its objectives.
10. What are the important things to be considered while preparing Statement of
Expenditure? Discuss.
11. Describe the ruling of statement of expenditure.
12. What is Bank Reconciliation Statement? Write any four reasons of not matching
the balance between pass book and cash book.


304 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 305

NUMERICAL PROBLEMS


1. The following information is taken from a government office.
Annual Budget Expenditure upto Expenditure
B.H. No. Expenditure Head
Amount (Rs.) Ashwin (Rs.) of Kartik (Rs.)
21111 Salary 2,00,000 45,000 30,000
21112 Local Allowance 4,000 900 300
22311 Travelling Expenses 20,000 4,000 2,000
22612 Office Expenses 18,000 4,500 2,000
29311 Furniture & Fixtures 40,000 9,500 3,700
29511 Machinery& Equipments 1,00,000 30,000 12,000
Additional Information
i. Revolving fund received. Rs. 2,12,000.
ii. Petty Cash Fund balance at the end of the month, Kartik Rs. 500.
iii. Uncleared TADA advance Rs. 1,300.
Required
Monthly Expenditure Report for Kartik, 2074, showing:
a. Total expenditure upto the end of Kartik
b. Bank Balance at the end of Kartik.
c. Unspent budget release upto the end of Kartik.
d. Net expenditure upto Kartik.
Ans: a) Rs.1,43,900 b) Rs. 67,600 c) Rs. 68,100 d) Rs. 1,42,600
2. The details of expenses in District Police Office, Dolpa.
B.H. Annual Budget Expenditure Expenditure
No. Expenditure Head Amount (Rs.) upto Poush (Rs.) of Magh (Rs.)
21111 Salaries 1,44,000 72,000 12,000
21114 Field Allowance 12,000 6,000 1,000
22212 Repairs & Maintenance 6,000 3,000 500
22311 Office expenses 10,000 4,000 2,000
22711 Miscellaneous expenditure 8,000 5,000 1,500
29411 Vehicle 20,000 12,000 3,000
Total 200,000 102,000 20,000
Additional Information
Revolving fund Balance Rs 25,000.
Advance for vehicle of Rs 2,000 is not cleared.
Petty cash fund established with Rs 1,000.
Prepare statement of the Expenditure for the month of Magh, 2075, showing the
following information.
a. Total revolving fund release b. Expenditure upto Magh
c. Net expenditure d. Bank balance
e. Budget balance
Ans: a) Rs. 1,27,000 b) Rs. 1,22,000 c) Rs. 1,20,000 d) Rs. 4,000 e) Rs. 78,000.




306 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 307

3. The followings are the details of expenditure related with District
Development Office, Kaski.
B.H. Annual Release upto Balance of
No. Expenditure Head Appropriation Rs. Magh Rs. Budget Rs.
21111 Salaries 150,000 80,000 50,000
22111 Water and Electricity 25,000 10,000 10,000
22211 Fuel 40,000 10,000 15,000
22311 Office Expenses 20,000 5,000 10,000
29111 Purchase of Land 1,00,000 80,000 10,000
29611 Public Construction 80,000 30,000 40,000
Total 4,15,000 2,15,000 1,35,000
Additional Information:
Cash balance Rs. 3,000.
Advance for Public Construction of Rs. 11,000 is not cleared.
Total imprest fund received Rs. 3,05,000.
Unpaid loan from other office is Rs.2,200.
Required:
Prepare the Statement of Expenditure for the month of Magh, 2074 showing
the following.
a. Expenditure of Magh b. Expenditure upto Magh
c. Revolving fund balance d. Net expenditure e. Bank balance
Ans: a) Rs. 65,000 b) Rs. 2,80, 000 c) Rs. 90,000 d) Rs. 2, 69, 000 e) Rs. 19,800
4. The followings are the details of the expenditure related with the District
Administration Office, Jumla.
B.H. Budget Heads Annual Expenditure of Balance of
No. Appropriation Rs. Bhadra Rs. Budget Rs.
21111 Salaries 25,00,000 1,72,000 22,00,000
21112 Local Allowance 1,00,000 16,000 75,000
21123 Medical Allowance 15,000 0 11,500
22311 Travelling Expenses 50,000 14,000 10,000
22711 Miscellaneous Expenses 20,000 2,000 10,000
29411 Vehicle 12,80,000 80,000 0
Total 39,65,000 2,84,000 23,06,500
Additional Information:
Revolving fund balance was Rs. 3,80,000.
In the advance account column of Bank Cash Book, Rs. 2,000 was shown in the
advance given column and Rs.1,300 was shown in the advance cleared column.
Bank balance Rs. 95,000.
Security deposit amounting to Rs. 9,000 received from a contractor for supply of
vehicles is not yet refunded.
Required:
Statement of the Expenditures for the month of Ashwin, 2074 showing the following.
a. Expenditure upto Bhadra b. Budget release upto Bhadra
c. Total revolving fund d. Net expenditure e. Cash balance
Ans: a) Rs.16,58,500 b) Rs.13,74,500 c) Rs.17,54,500 d) Rs.16,57,800 e) Rs.10,000



306 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 307

5. The following are the details of expenditure relating to District Administration
Office, Kathmandu.

Expenditure Expenditure
B.H. Budget Heads Annual upto Bhadra upto Ashwin
No. Appropriation Rs.
Rs. Rs.
21111 Salaries 2,50,000 50,000 75,000
21122 Food 18,000 3,000 3,500
22121 House Rent 26,000 5,000 6,400
22311 Office Expenses 20,000 5,000 8,000
22313 Book & materials 20,000 5,000 6,000
29311 Furniture & Fixtures 50,000 20,000 27,000
Total 3,84,000 88,000 1,25,900
Additional Information:
Revolving fund balance is Rs 58,000.
Advance for furniture of Rs. 7,000 is not cleared.
Bank balance is Rs. 18,500.
Required:
Prepare the Statement of Expenditure for the month of Ashwin, 2071 showing
the following.
a. Expenditure of Ashwin b. Total Revolving Fund release
c. Balance of budget d. Net expenditure
e. Cash balance
Ans: a) Rs.37,900 b) Rs.1,46,000
c) Rs.2,58,100 d) Rs.1,18,900 e) Rs.1,600
6. Following are the statements of revenues and expenditures of Agriculture
Office, Illam for the month of Magh, 2074. Prepare a Statement of
Expenditure :
B.E. Budget Heads Annual Expenditure Expenditure
No. Appropriation upto Poush of Magh
21111 Salary 36,00,000 18,00,000 3,00,000
21112 Local Allowance 6,00,000 3,00,000 50,000
22122 Other Rent 18,000 9,000 1,500
22211 Fuel 40,000 20,000 2,000
22212 Repairs & Maintenance 12,000 6,000 1,000
22311 Office Expenses 2,40,000 1,20,000 20,000
22612 Travelling Expenses 4,80,000 2,40,000 40,000
22911 Contingency 1,00,000 50,000 8,000
29221 Public Construction 2,00,000 50,000 25,000
29311 Furniture & Fixtures 60,000 50,000 5,000
29411 Vehicle 70,000 35,000 5,000
Total 54,20,000 26,80,000 4,57,500





308 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 309

Additional Information :
1. According to Bank Cash Book of Magh, Bank balance was Rs. 39,000 and
cash balance is zero.
2. As per the loan account, Rs. 20,000 was yet to be paid. The office loan given
Rs. 55,000 to others and it is not yet collected.
3. Petty Cash Book balance was Rs. 500.
4. In the advance account column of Bank Cash Book, Rs. 2000 was shown in
the advance given column and Rs. 1,300 was shown in the advance cleared
column.
5. Security deposit amounting to Rs. 15,000 received from a contractor for
supply of vehicles is not yet refunded.
6. Total of revolving fund till Magh was Rs. 31,97,000
Required:
a. Total expenditure upto Magh Ans: Rs. 31,37,500
b. Budget balance Ans: Rs. 22,82,500
c. Revolving fund balance Ans: Rs. 5,17,000
d. Net expenditure Ans: Rs. 31,36,800
7. Based on the following particulars, prepare Bank Reconciliation Statement
for the month of Falgun. Bank Statement at the end of Falgun showed the
bank balance of Rs. 1,20,000 and on the same date, Bank Cash Book revealed
the bank balance of Rs. 1,10,500 for the same transactions while scrutinising
the transactions, the following facts were found:
a. The following cheques were issued but not cashed till the end of Falgun:
Cheque no. 03567 of Rs. 12,000 against the purchase of office materials
Cheque no. 03568 of Rs. 8,500 against the purchase of other materials.
b. Rs. 500 deposited into bank on 10-11-075 being cash returned in course of
advance clearance was recorded by the bankers as Rs. 5,000.
c. A cheque of Rs. 15,000 received as the repayment of inter-office loan from
a nearby office, was deposited but not collected till the end of the month.
d. Bank charge of Rs. 500 debited by bank was omitted in the Bank Cash Book
to record.


S.L.C/SEE Examination Questions.
8. Why is monthly statement prepared? Describe any four points of importance in
brief. (2059‘R’)
9. Introduce Monthly Statement and describe its four kinds. (2063 ‘R’)
10. What is it called to the monthly report prepared in government accounting
system? 2067(S)
11. Prepare statement of expenditure for the month of Ashoj, 2068 Office of District,
Development Committee, Rupandehi from the following particular. 2068(R)







308 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 309

Budget Annual Expenditure up Expenditure
Head Budget Heads Appropriation to Bhadra Rs. of Ashoj Rs.
No. Rs.
21111 Salary 5,00,000/- 1,70,000/- 40,000/-

21114 Field Allowance 45,000/- 18,000/- 6,000/-
22121 House Rent 90,000/- 20,000/- 7,000/-
22911 Contingencies 35,000/- 12,000/- 5,000/-
26311 Current Grant to local body 25,000/- 10,000/- –
29311 Furniture & fixtures 20,000/- 7,000/- 2,000/-
Total 7,15,000/- 2,37,000/- 60,000/-
Additional informations:
Revolving fund balance Rs. 1,70,000/-
Uncleared furniture advanced Rs. 4,000/-
Petty cash fund established Rs. 3,000/-
Show the following:
Budget release/total allotment up to Ashoj
Total expenditure up to Ashoj
Net expenditure less uncleared advance
Bank balance
Budget balance
Ans: (i) Rs. 2,37,000 (ii) Rs. 2,97,000 (iii) Rs. 2,93,000,
(iv) Rs. 1,07,000 (v) Rs. 4,18,000
12. The details of expenses in District Administration Office, gulmi are as
follows: 2067(S)
Budget Annual Expenditure up Expenditure
Head Budget Heads appropriation to Baisakh Rs. of Jestha Rs.
No. Rs.
21111 Salary 1,60,000/- 80,000/- 4,8000.-
21123 Medical Allowance 15,000/- 7,000/- 2,000/-
22112 Communication charge 10,000/- 4,000/- 1,000/-
22212 Repair and maintenances 8.000/- 3,000/- 1,500/-
22711 Miscellaneous expenditure 6,000/- 2,000/- 500/-
29411 Vehicle 21,000/- 4,000/- 3,000/-
Total 2,20,000/- 1,00,000/- 56,000/-
Additional information
Revolving fund released 1.80,000/-
Advance for vehicle, Rs. 5,000/- is not cleared.
Petty cash fund of Rs. 500/- established.
Prepare statement of the expenditure for the month of Jestha, 2067 showing



310 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 311

the following information.
Bank balance Ans: Rs.23,500
Total expenditure upto Jestha Ans: Rs.1,56,000
Balance of budget Ans: Rs.64,000
Revolving fund balance Ans: Rs.80,000
Net expenditure Ans: Rs.1,51,000
13. Following are the details of expenditure in District Administration Office
Bhojpur. 2067(R)
B. H. Budget Heads Annual Expenses up to Expenses of
No. appropriation Rs. Bhadra Rs. Ashoj Rs.
21111 Salary 6,00,000/- 1,00,000/- 50,000/-
21112 Local Allowance 75,000/- 15,,000/- 3,000/-
22121 House Rent 1,20,000/- 20,000/- 10,000/-
22311 Office expenses 35,000/- 10,000/- 2,000/-
22711 Miscellaneous Expenses 18,000/- 3,000/- 1,500/-
29311 Furniture & Fixtures 40,000/- 16,000/- 4,000/-
Total 8,88,000/- 1,64,000/- 70,500/-
Additional information:
Total revolving fund released Rs. 3,00,000/-
Uncleared furniture advance Rs. 10,000/-
Petty cash fund established of Rs. 3000/-

Prepare statement of expenditure for the month of Asoj, 2067 showing the
followings :
Budget release up to Asoj Ans: Rs. 1,64,000
Total expenditure up to Asoj Ans: Rs. 2,34,500
Budget balance Ans: Rs. 6,53,500
Revolving fund balance Ans: Rs. 1,36,000
Bank balance Ans: Rs. 62,500
14. The details of expenses in District Administration Office, Bhaktapur : 2066(S)

B. H. Budget Heads Annual Expenditure Expenditure
No. appropriation Rs. upto Poush Rs. of Magh Rs.
21111 Salary 2,50,000 70,000 15,000
21114 Field Allowance 30,000 10,000 3,000
22121 House Rent 60,000 25,000 5,000
22311 Office expenses 15,000 5,000 2,000
29311 Furniture & Fixtures 10,000 5,000 1,000
29411 Vehicle 1,20,000 90,000 10,000
Total 4,85,000 2,05,000 36,000
Additional informations:
Revolving fund balance is Rs. 50,000/-
Uncleared vehicle advance Rs. 15,000/-
Petty cash fund of Rs. 5,000/- established.



310 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 311

Prepare statement of the expenditure for the month of Magh, 2065 showing
the following information:
i. Expenditure upto Magh Rs. 2,41,000
ii. Balance Budget Rs. 2,44,000
iii. Bank Balance Rs. 9,000
iv. Revolving fund release Rs. 2,55,000
v. Net expenditure Rs. 2,26,000

15. Following are the details of expenditure relating to District Irrigation Office,
Chitwan: 2066(R)
Budget Annual Expenditure up Expenditure
Head No. Budget Heads appropriation Rs. to Bhadra Rs. of Ashoj Rs.
21111 Salary 2,50,000 40,000 30,000
21113 Dearness Allowance 50,000 20,000 6,000
22211 Fuel 60,000 12,000 5,000
22311 Office expenses 25,000 10,000 4,000
22612 Travelling Expenses 15,000 2,000 1,500
29311 Furniture & Fixtures 50,000 10,000 4,000
Total 4,50,000 94,000 50,500
Additional information:
Revolving fund balance is Rs. 65,000.
Advance of Rs. 5,000 remains unclear.
Petty cash fund balance is Rs. 2,500.
Prepare statement of the expenditure for the month of Ashwin showing the
following :
i. Expenditure up to the month of Ashwin Rs. 1,44,500
ii. Balance budget Rs. 3,05,500
iii. Total budget release Rs. 1,59,000
iv. Bank balance Rs. 12,000
v. Net expenditure Rs. 1,39,500
16. Prepare the statement of expenditure for the month of Chaitra, 2065 from the
following particulars. 2065(S)
Budget Annual Expenditure Expenditure
Head No. Budget Heads appropriation Rs. upto Falgun of Chaitra Rs.
21111 Salaries 30,00,000/- 20,00,000/- 3,00,000/-
21121 Uniform 90,000/- 62,000/- 5,000/-
22311 Office expenses 25,000/- 14,000/- 3,000/-
22313 Books and materials 1,20,000/- 80,000/- 10,000/-
29311 Furniture & Fixtures 48,000/- 24,000/- 6,000/-
29511 Machinery equipment 35,000/- 20,000/- 4,000/-
Total 33,18,000/- 22,00,000/- 3,28,000/-
Additional information:
Revolving fund balance Rs. 5,00,000/-.
Machinery & equipment advance Rs. 6,000/- is not cleared.
Petty cash fund established Rs. 5,000/-.


312 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 313

Required:
(i) Total revolving fund release Rs. 27,00,000
(ii) Balance budget Rs. 7,90,000
(iii) Bank Balance Rs. 1,67,000
(iv) Net expenditure Rs. 25,22,000
(v) Expenditure upto Chaitra Rs. 25,28,000
17. The details of expenses in Land Reform Office, Baglung : 2065(R)
Annual
Budget Expenditure up Expenditure of
Head No. Budget Heads appropriation to Ashwin Kartik
Rs.
21111 Salary 84,000 28,000 7,000
21122 Food 5,000 2,000 –
22112 Communication Charge 7,000 1,600 500
22121 House Rent 24,000 8,000 2,000
22311 Office expenses 6,000 3,000 1,500
29311 Furniture & Fixtures 10,000 4,000 1,000
Total 1,36,000 46,600 12,000
Additional information
Revolving fund release amount Rs. 70,000.
Uncleared office expenses advance Rs. 3,000.
Petty cash fund established with Rs. 500.
Prepare statement of the Expenditure for the month of Kartik of 2064, showing
the following information :
(i) Revolving fund balance (ii) Balance budget
(iii) Bank balance (iv) Net expenditure
(v) Expenditure up to Kartik
Ans: (i) Rs. 23,400 (ii) Rs. 77,400 (iii) Rs. 10,900 , (iv) Rs. 55,600 (v)Rs. 58,600
18. Prepare statement of expenditure of District Administration Office, Dolpa for
the month of Ashoj, 2068 on the basis of the particulars given below. 2069(R)
Budget Annual Expenditure up Expenditure
Head No Budget Heads Appropriation to Bhadra (Rs.) of Ashoj (Rs.)
21111 Salary 2,50,000 50,000 25,000
22121 Water and Electricity 20,000 5,000 3,000
22121 Home Rent 20,000 5,000 1,400
22612 Travelling Expenses 18,000 3000 500
22711 Miscellaneous Expenses 20,000 5,000 1,000
29511 Machinery and Equipment 50,000 20,000 7,000
Total 3,84,000 88,000 37,900
Additional Information.
a. Revolving fund balance Rs. 58,000
b. Advance of Rs. 5,000/- in not cleared.
c. Bank balance is Rs. 18,500.


312 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 313

Show the followings:
i. Expenditure up to Ashoj ii. Balance of budget
iii. Cash balance iv. Total budget release up to Ashoj
v. Net expenditure excluding advance
Ans i. Rs. 1,25,900, ii. Rs. 2,58,100, iii. Rs. 1,600, iv. Rs.1,46,000, v. Rs. 1,20,900
19. Prepare statement of expenditure for the month of Kartik, 2067 showing the
following information. 2068(S)
i. Expenditure upto Kartik ii. Total fund release
iii. Bank balance iv. Net expenditure v. Budget balance

Following are the details of expenses on District Agriculture Development
Office, Rautahat.
Expenditure Expenditure
Budget Budget Heads Annual up to Ashoj of Kartik
No Appropriation
(Rs.) (Rs.)
21111 Salary 1,80,000 45,000 15,000
21121 Local Allowance 24,000 6,000 2,000
22311 Office Expenses 12,000 4,000 1,000
22521 Production Materials and Services 8,000 3,000 1,000
22711 Miscellaneous Expenses 10,000 4,000 2,000
29511 Machinery and Equipment 6,000 2,000 500
Total 2,40,000 64,000 21,500
Additional Information:
a. Revolving fund balance Rs. 50,000.
b. Uncleared production materials and services advance Rs. 5,000.
c. Petty cash established with Rs. 2,000.
Ans: i. Rs. 85,500, ii. 1,14,000, iii. Rs. 26,500, iv. Rs.80,500, v. Rs. 1,54,500
20. Prepare statement of expenditure of District Forest Office, Nuwakot for the
month of Mangsir, 2074 from the following particulars. 2074(R)
Budget Budget Heads Annual Expenditure Expenditure of
No Appropriation upto Kartik (Rs.) Mangsir (Rs.)
21111 Salary 7,00,000 2,00,000 50,000
22112 Allowance 80,000 25,000 6,000
22121 House Rent 60,000 20,000 5,000
22531 Medicine 25,000 8,000 2,000
29311 Furniture 70,000 22,000 4,000
29511 Machinery 35,000 13,000 3,000
Total 9,70,000 2,88,000 70,000
Additional Information:
a. Total revolving fund balance Rs. 4,13,000.
b. Uncleared advance Rs. 2,000.
c. Bank Balance Rs. 51,000.


314 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 315

Show the followings:
i. Expenditure upto Mangsir ii. Revolving fund balance
iii. Budget balance iv. Cash balance
v. Net expenditure excluding advance
Ans: i. Rs. 3,58,000, ii. 1,25,000, iii. Rs. 6,12,000, iv. Rs.4,000, v. Rs. 3,56,000

21. Prepare statement of expenditure of District Education Office, Kaski for the
month of Falgun, 2072 from the following particulars. 2073(R)

Budget Budget Heads Annual Expenditure Expenditure of
No Appropriation (Rs.) upto Magh (Rs.) Falgun (Rs.)
21111 Salary 8,00,000 4,00,000 60,000
22121 House Rent 3,00,000 1,70,000 25,000
22314 Fuel 2,00,000 80,000 12,000
27312 Gratuity 1,00,000 60,000 –
29411 Vehicle 4,00,000 2,00,000 30,000
29511 Machinery 50,000 20,000 3,000
Total 18,50,000 9,30,000 1,30,000
Additional Information:
a. Total revolving fund Rs. 12,00,000.
b. Bank Balance Rs. 1,37,000.
c. Uncleared advance Rs. 5,000.
Show the followings from statement of expenditure:
i. Total budget release upto Falgun ii. Total expenditure upto Falgun

iii. Revolving fund balance iv. Net expenditure
v. Cash in hand
Ans: i. Rs. 9,30,000, ii. 10,30,000, iii. Rs. 2,70,000, iv. Rs. 10,25,000, v. Rs. 3,000


























314 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 315

F. M.: 75 P .M. : 24 Remarks Any 8 terms are given in one question One full format should be prepared








No. of Questions 1 1 2 2 1 3 2 1 3 16
Subject :Office Management and Account (Optional Second)



Total marks 5 5 6 1 l 5 11 6 10 16 75


Higher Ability Long Short 5 5 5 0 15
Specification Grid - 2065





Application (Practical Problem) Long Short 5 5+5 10 10 20 15






Long 10 10

Knowledge and understanding Short 5 5 10




Very short 1 1 1 1 1 1 5










Topics Final Account (Trading A/c, P & Government Accounting Goshwua Voucher AGF No.10 Bank Cash Book AGF No. 5 Budget sheet AGF No. 8 Statement of Expenditure AGF (Any six transactions only) Total
Office Procedure Financial Institutions Trial Balance L A/c, Balance Sheet) (Any five transactions) No. 13





Class : 10 S.N. 1. Filing 2. Trade 3. 4. 5. 6 7. 8 9-11






316 Aakar’s Office Practice and Accountancy - 10 Specification Grid & Model Questions 317

Model-1




Subject: Office Practice and Accountancy Full Marks: 75
Time: 2:15 hrs Pass Marks: 24
GROUP ‘A’
A. Answer the following questions in one sentence. 5 × 1 = 5
1. Give full form of SAPTA.
2. What is dishonour of cheque ?
3. What is liability ?
4. Which office prepares accounting forms used in Government Office of Nepal ?
5. What is budget transfer ?
GROUP ‘B’
B. Give short answer to the following questions. 8 × 5 = 40
6. What is report ? Describe in brief of any four type of report.
7. What is Numerical Filing System ?Mention four advantage and four disadvantages
of it.
8. Why is home trade necessary ? Describe its any four procedures, orderly.
9. Why auditing is necessary in Government Accounting ? Differentiate in three
points between internal audit and final audit ?
10. Which accounts are prepared for what purpose in Bank Cash Book ?
11. Prepare a Trial Balance of Shree Raj Khadya Stores for the fiscal year 2074/075
on last Asar, 2075 based on following particulars.
Sales 2,00,000/- Purchases 40,000/-
Sales Return 60,000/- Creditors 15,000/-
Outstanding Expenses 25,000/- Advance Income 40,000/-
Furniture 80,000/- Machinery 1,00,000/-
Ans: Trial balance total = Rs. 2,80,000
12. Prepare profit and loss account of Hetauda Company Pvt. Ltd. for the fiscal
year end of Ashadh 2074/075 according to the following transactions.
Gross Profit 1,85,000/- Salary 81,000/-
Profit in Investment 11,000/- Tax 7,000/-
Commission Received 4,000/- Interest Paid 20,000/-
Advertisement 15,000/- Audit Fees 10,000/-
Ans: Net profit = Rs. 67,000
13. Prepare a balance sheet of Kumari Cenema Industries Private Limited for the
fiscal year 2074/075 from the following particulars.
Capital 5,00,000/- Bank Balance 7,00,000/-
Cash in Hand 50,000/- Prepaid Expenses 40,000/-
Creditors 3,70,000/- Debtor 4,10,000/-
Loan 1,00,000/- Net Profit 2,30,000/-
Ans: Balance sheet total = Rs. 12,00,000


316 Aakar’s Office Practice and Accountancy - 10 Specification Grid & Model Questions 317

GROUP ‘C’
C. Give long answer to the following questions: 3 × 10 = 30
14. What is Central Bank ? What is the name of the Central Bank of Nepal ? Describe
any six functions of Central Bank.
15. Prepare Goshwara Voucher AGF No. 10 of District Administration Office,
Dolpa from the following transactions.
On 2074/4/5, received bank order of Rs. 9,00,000/- as revolving fund
release.
On 2074/4/15, the telephone charge Rs. 7,000/- for the month of Asar was
paid through cheque no. 01234.
On 2074/4/17, storekeeper K. Pradhan was paid an amount of Rs. 1,20,000/-
as an advanced for the purchase of office furniture through
cheque no. 01235.
On 2074/4/27, office furniture purchase advanced of storekeeper K. Pradhan
Rs. 1,20,000/- has been cleared against the bills for purchase
of Rs. 1,25,000/- by issuing cheque no. 01236 for the balance
amount.
On 2074/4/30, out of total salary to staff Rs. 2,50,000/- for the month of
Shrawan Rs. 25,000/- were deducted as provident fund and
the balance was distributed by issuing a cheque no. 01237.

16. Prepare statement of expenditure for the month of Ashoj 2074, Office of District
Development Committee, Rupandehi from the following particulars.
Budget Annual Expenditure Expenditure
Head Budget Heads Appropriation upto of Ashoj Rs.
No Bhadra Rs.
21111 Salary 5,00,000/- 1,70,000/- 40,000/-
21123 Medical Allowance 45,000/- 18,000/- 6,000/-
22121 House Rent 90,000/- 20,000/- 7,000/-
27312 Gratuity 25,000/- 10,000/- –
29311 Furniture & fixtures 20,000/- 7,000/- 2,000/-
22911 Contingencies 35,000/- 12,000/- 5,000/-
Total 7,15,000/- 2,37,000/- 60,000/-
Additional informations :
Revolving fund balance Rs. 1,70,000/-.
Uncleared furniture advanced Rs. 4,000/-.
Petty cash fund established Rs. 3,000/-.
Show the following:
(i) Total budget release (ii) Total expenditure upto Ashoj
(iii) Net expenditure less uncleared advance
(iv) Bank balance (v) Budget balance
Ans: (i) Rs. 4,07,000; (ii) Rs. 2,97,000; (iii) Rs. 2,93,000;
(iv) Rs. 1,07,000; (v) Rs. 4,18,000




318 Aakar’s Office Practice and Accountancy - 10 Specification Grid & Model Questions 319

Model-2




Subject: Office Practice and Accountancy Full Marks: 75
Time: 2:15 hrs Pass Marks: 24
GROUP ‘A’
A. Answer the following questions in one sentence. 5 × 1 = 5
1. Write the full form of SAFTA and SAPTA.
2. In which account we can’t get any interest?
3. How is the net loss determined?
4. What type of ink is used by internal auditor and final auditor?
5. Which accounts are used to keep the record of transaction of advance in Bank
Cash Book?
GROUP ‘B’
B. Give short answer to the following questions. 8 × 5 = 40
6. What is Tippani? Write any eight points to be considered while drafting it. 1+4
7. What is indexing? Explain any four importance of indexing. 1+4
8. Explain in brief, any five modes of payment used in trade. 5
9. Prepare Trial Balance of ABC Co., Palpa for the month of Ashad, 2075 from
the following. 5
Particulars Amount Rs. Particulars Amount Rs.
Capital 1,20,000 Advance Salaries 25,000
Loose tools 105,000 Bills receivable 60,000
Loan of Maya 80,000 Trade Mark 85,000
Sales 50,000 Creditors 25,000
Ans: Rs. 2,75,000/-
10. Prepare Balance Sheet of Om Shanti Stores, Bharatpur on the basis of
following particulars as on 31 Ashad, 2075. 5
st
Additional Capital 2,40,000 Loan to Asha 70,000
Short term Investment 60,000 Leaseholds assets 55,000
Reserve 30,000 Drawing 40,000
Net Profit 60,000 Furniture 105,000
Ans: Rs. 2,90,000/-
11. Prepare Profit and Loss A/c of Thapa & Company, Chitwan on the basis of
following particulars as on 31 Ashad, 2075. 5
st
Particulars Amount Rs. Particulars Amount Rs.
Gross Profit 35,000 Interest received 36,000
Interest on Loan 35,000 Salary 45,000
Commission received 15,000 Depreciation 15,000
Discount on sales 25,000 Bonus received 25,000
Ans: Net Loss Rs. 9,000/-
12. Explain any five main objectives of New Accounting System. 5 × 1 = 5
13. Introduce budget sheet and describe its three parts in brief. 2 + 3 = 5


318 Aakar’s Office Practice and Accountancy - 10 Specification Grid & Model Questions 319

GROUP ‘C’
C. Give long answer to the following questions: 3 × 10 = 30
14. What is Central Bank? Describe any eight functions of commercial bank. 10
15. Prepare the Goshwara Voucher (AGF No. 10) from the following transactions in
the book of District Administration Office, Chitwan. 10
On 2075/4/2, received revolving fund as Rs. 15,00,000 as equal to one sixth
of Rs. 90,00,000.
On 2075/4/8, advance for purchasing computer Rs. 50,000 is given to S.O.
Mr. Narayan Sharma through cheque no. 12001.
On 2075/4/11, paid Rs. 30,000 by cheque no. 12002 to Narayani Press against
the printing expenses of Introductory Book of Office.
On 2075/4/21, S.O. Mr. Narayan Sharma cleared the computer advance
amount receiving bill of Rs. 55,000 and paid the rest amount
by cheque no. 12003.
On 2075/4/29, paid Rs. 80,000 by cheque no. 12004 as the salary of staff
deducting Rs.18,000 provident fund and Rs.2,000 income tax.
16. The following are the details of expenditure relating to District Administration
Office, Gorkha. 10
Budget Annual Expenditure Expenditure
Head Budget Heads Appropriation upto of Ashwin
No Rs. Bhadra Rs. Rs.
21111 Salaries 4,50,000 1,50,000 40,000
22121 House Rent 30,000 10,000 4,500
22311 Official Expenses 70,000 25,000 4,000
22313 Book & materials 40,000 15,000 5,000
22612 Travelling Expenses 50,000 10,000 1,500
29311 Furniture & Fixtures 1,50,000 50,000 10,000
Total 7,90,000 2,60,000 65,000
Additional Information:
Revolving fund remaining is Rs 80,000.
Advance for furniture of Rs. 20,000 is not cleared.
Bank balance is Rs. 5,000.
Required:
Prepare the Statement of Expenditure for the month of Ashwin, 2075 showing
the following.
Expenditure upto Ashwin 3
Balance of budget 2
Cash balance 2
Total revolving fund release 2
Net expenditure 1
Ans: (i) Rs. 3,25,000/- , (ii) Rs. 4,65,000/-, (iii) Rs. 10,000/-,
(iv) Rs. 3,40,000/- , (v) Rs. 3,05,000/-




320 Aakar’s Office Practice and Accountancy - 10 Specification Grid & Model Questions PB