27313 Accumulated It includes payment for accumulated leave adjustment.
leave of retired
employees
27314 Medical It includes medical expenses provided to civil servants.
tratment
of retired
employees
27315 Facility and Int includes the facilities provided to the heirs of deceased
assistance employees.
to deceased A Reimbursement to P/F against the amount provided to the
employees family to deceased employees.
Additional amount provided by government of Nepal.
28000 Other expenses It includes all refunds and rent for land.
28100 Expenditure It includes all expenses related to assets except interest.
related to asset
28140 Land rent Amount paid for rent by the government for the use of land
in lease.
28141 Land rent Amount paid lease for rent by the government for the use of
land in lease.
28200 Refund It includes the amount of custom duty, other related tax and
expenditure refund due to judicial decisions.
28211 Revenue refund It includes return of import duty, taxes, excise duty, land tax,
penalties and other including foreign one.
28212 Judicial refund It includes the refunds which are to be made due to judicial
decisions
28213 Other refund It includes all other refunds including foreign one except
revenue refund and judicial refund.
29100 Capital It includes all capital expenses of government
expenditure
29100 Land All capital expenses which are related to purchase of land.
29110 Land purchase Expenditure which are incurred while purchasing or
acquisition of land.
29111 Land purchase Purchase and acquisition of land
Tax and other related expenditure for land purchased and
acquisitions.
29200 Building Capital expenses incurred for the purchase and construction
of building.
29210 Building capital expenditures for the purchase of building.
purchase
Office Practice and Accounting 10 145
29211 Building Cost of building purchase and acquisition including and
purchase covered by building and other elated cost. But the cost of
building construction is not included.
29220 Building Capital expenditure for the construction of building.
construction
29221 Building It includes :
construction • Cost for construction of building, shed and compound
wall.
• Cost of expansion like addition of rooms, story etc.
• Cost for increasing life of building.
29230 Capital It includes
improvement • Cost of construction of public properties.
expenditures • Maintenance of public properties for extending the quality,
and life of assets.
29231 Capital It includes those expenses which are incurred for extending the
improvement life of building but expenses for constructions and expansion
expenditures of size comes under code no. 29221.
building
29300 Furniture It includes capital expenses for the purchase of furniture.
29310 furniture and It includes capital expenses for the purchase of furniture.
fixture
29311 Furniture and It includes the expenses for the purchase of furniture, fixtures
fixture and furnishing.
• Purchase price
• Transport charge, insurance, tax and custom duty.
29400 Vehicle All capital expenses incurred while purchasing all types of
vehicles.
29410 Vehicle All capital expenses incurred while purchasing all types of
vehicles.
29411 Vehicle It includes
• The cost of purchase of vesicles eg. Aeroplane, all kinds of
motor vehicles, bicycles and tractors used for transportation
including animals like bulls, horse, etc.
• Cost of vehicle engine.
• Cost relating to import of vehicles and vehicle engine like,
insurance, transpiration, costume duty etc.
29500 Machinery and Capital expenditures which are incurred while purchasing
equipment machinery and equipment.
29510 Machinery and Capital expenditures which are incurred while purchasing
equipment machinery and equipment.
146 Office Practice and Accounting 10
29511 Machinery and The following expenses are incurred under this heading:
equipment • The cost of various types of heavy machinery, agriculture related
machinery and tools, tractor, (not used for carrying goods),
generator, transfer, factory equipments, construction related
machines, communication tools, scientific equipments and
goods, weight related tools, photographic equipment, office
machines such as fax, mimeographs, computer, printer.
• Repair and maintenance expenses by changing main part of
machines.
• Expenses for carriage, excise duty, tax, custom duty, insurance
etc, of such machines.
• Cost of following goods which is minimum one year durable
or per unit cost should be more than Rs. 2,000 necessary for
government office.
• Equipments necessary for hospital
1. Technical equipments such as heater, fan, telephone, set,
calculator, cheque writer, electric meter, torchlight, solar, inverter,
UPS, hard disc and its installation cost, technical equipments
necessary for radio and television broadcasting etc.
2. Agriculture tools, veterinary related small tools, drawing,
design, etc. related technical equipments.
3. Security related equipment, parts used in security department.
4. However, if per unit cost of machine is less than Rs. 2,000 it
should be included in budget head number 22311 as official
related expenses.
29600 Public It includes capital expenses incurred for public constructions.
construction
29610 Public It includes capital expenses incurred for public constructions.
construction
29611 Public It includes :
construction • Cost of construction and expansion of highway,
road, bridge, rope-way, and airdrome, project for
communication, electricity, drinking water, irrigation,
forestry and mining.
Construction cost includes.
• Cost of fuel directly related to construction
• Nursery establishment and plantation cost.
29620 Capital • It includes expenditures incurred for improvement of
improvement public construction and extends assets which expands
expenditure the life of capital assets.
Office Practice and Accounting 10 147
29621 Capital It includes :
improvement • Maintenance on building and other capital assets for
expenditure extending capital the quality and life of the assets but
- Public does not include the cost of expansion and addition to
construction the existing assets.
• But expenditure for extension of such assets are
included in code no. 29611.
29700 Research and It includes
capital oriented • the expenditures incurred for research and consultancy
consultancy during or before the period of capital construction.
• Research and consultancy for software purchase and
development.
29710 Research and It includes :
capital oriented • The expenditures incurred for research and consultancy
consultancy during or before the period off capital construction.
Research and consultancy for software purchase and
development.
29711 Research and It includes :
capital oriented • Cost of feasibility study
consultancy • Cost of survey, design and drafting
• Technical consultancy service charges for supervision
of construction work, cost of excavation and research.
29712 Purchase and It includes :
development of • Software development (including consultancy),
software purchase and significant upgrading of software.
29800 Contingency - This head is developed only to allocate budgets in lump
capital sum.
29810 Contingency This head is developed only to allocate budget in lump sum
- capital where allocation of budget is not possible. Amount of such
expenditure budget is to be allocated to different heads before spending.
29811 Contingency This head is developed only to allocate budget in lump sum
- Capital where allocation of budget is not possible. Amount of such
expenditure budget is to be allocated to different heads before spending.
Budget of this head can not be spend in this head.
148 Office Practice and Accounting 10
Office Practice and Accounting 10 149
150 Office Practice and Accounting 10
Office Practice and Accounting 10 151
152 Office Practice and Accounting 10
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154 Office Practice and Accounting 10
Office Practice and Accounting 10 155
156 Office Practice and Accounting 10
Office Practice and Accounting 10 157
158 Office Practice and Accounting 10
Office Practice and Accounting 10 159
160 Office Practice and Accounting 10
Office Practice and Accounting 10 161
162 Office Practice and Accounting 10
Office Practice and Accounting 10 163
164 Office Practice and Accounting 10
Office Practice and Accounting 10 165
Source: http://www.fcgo.gov.np/chart-of-accounts/
EXERCISE
Answer the following questions in one sentence.
1. What is government accounting?
2. What are the two levels of government offices under new accounting systems?
3. Which institution is responsible for final audit of the government offices?
4. Who appoints the auditor general?
5. How many members were there in the account committee, 2017?
6. Which institution is responsible for the internal audit of the government offices?
7. Under which ministry is the Office of the Finance Comptroller General?
Give short answer to the following questions.
1. Explain features of new accounting system.
2. Explain logical causes for the continuous uses of new accounting system.
3. What is government accounting? How does it differ from the business
accounting? Mention.
4. Introduce the office of the auditor general and mention functions and duties of
the auditor general.
5. Discuss the role of auditing in government accounting with five causes.
6. Write similarities and dissimilarities between central level accounting and
operating level accounting.
7. Why is New Accounting System used? Discuss its importance in the government offices.
8. What is auditing? Mention dissimilarities between internal audit and final audit.
One very short question of 1 mark and one short question of 5 marks will
be asked from this unit.
166 Office Practice and Accounting 10
UNIT
8 Journal Voucher
Learning objectives :
After the completion of this unit, students will be able
to understand :
• meaning and definitions of journal voucher
• rules of debit and credit
• meaning of account
• meaning of debit and credit
• types of journal voucher
• Journal voucher for clearing advance
• Journal voucher for miscellaneous transaction
• Petty cash fund
• Employee provident fund
• Provident fund loan
Office Practice and Accounting 10 167
8 Journal Voucher
Journal voucher is the book of primary entry in which the financial transactions
are recorded chronologically. It is based on double entry system of book keeping.
Under the new accounting system, Government of Nepal maintains journal voucher
in central and operating level office to record the revenue and expenditure. Every
financial transaction of government office is primarily recorded in the journal voucher.
It is also called Goshwara Voucher. A specially designed form is used in government
office to record primary entries. That means, government offices use prescribed
form by office of The Auditor General for all types of financial records . The Auditor
General has prescribed the form of journal voucher as Auditor General Form (AGF)
No. 10. A separate journal voucher is prepared for every transaction.
Specimen of Journal Voucher
AGF. No. 10
Government of Nepal
(1) ........................ Office/Department/Ministry
(2) J.V. No. .........
(3) Date .............
Code L.F. B.H.No. Debit Amount Credit Amount
No. Particulars (5) (6) (7) (Rs.) (8) (Rs.) (9)
(4)
Receipt No. : ........... Cheque No. : ...........
Received amount : ........... 10 Cheque amount : ........... 11
Submitted by : ........... Approved by : ...........
Position : ........... 12 Position : ........... 13
Date : ........... Date : ...........
168 Office Practice and Accounting 10
Explanation of the parts of journal voucher
Assigned no. Descriptions
Name of the office, ministry and department of Government of
1.
Nepal
2. Serial number of journal voucher
3. Date of transaction
4. Code number of bill or budget release no
Name of the accounts debited and credited with narration to
5.
explain transactions that occurred
6. Ledger Folio (i.e. Page number of ledger account ) is written
Budget expenditure head and sub-head number of the
7. transaction
8. Debit amount
9. Credit amount
10. Received amount and related receipt amount
11. Cheque amount and cheque number of the amount in words
The signature and designation of the person who prepares
12. Goswara along with the date
The signature, designation of the person who approves the
13. Goswara voucher with the date of approval
Points to be taken into consideration while preparing journal voucher
1. Every transaction is recorded in separate voucher.
2. Rule of double entry system should be followed.
3. The word BE (Budget Expenditure) should be written for each expenditure after
the word 'Debit' (i.e. Dr.) except advance expenditure unless advance is cleared.
4. Narration is necessary for each transaction.
5. Budget head number should be written in every budget expenditure.
6. If any supportive documents are available , they should be attached with journal
voucher for evidence.
Office Practice and Accounting 10 169
Rule for debit and credit
On the basis of account classification
It is also known as traditional rule. Under this method, accounts are classified as
personal, real and nominal account and rule of debit and credit is applied as follows:
Personal account: all the natural and artificial persons come under personal account .
For example, Ram's A/c, Sita's A/c, Hari A/c ,XYZ Co A/c, Pashupati Trader’s A/c, etc.
The rule is:
Debit the receiver
Credit the giver
Real account: All property or assets having monetary value of the business come
under real account. For example, Cash A/c, Machinery A/c, Land and Building A/c,
Goodwill A/c, etc.
The rule is:
What comes in-Debit
What goes out-Credit
Nominal account: Accounts relating to expenses, losses, incomes, and gains come
under nominal accounts. For example, rent A/c, salaries A/c, wages A/c, interest A/c,
discount A/c, etc.
The rule is:
All expenses and losses are-Debit
All income and gains are-Credit
On the basis of nature of transactions:
This method is known as modern rule. Increase or decrease in the value of transactions,
record is maintained under this method.
Increase in Assets, Loses and Expenses – Debit
Decrease in Assets, Loses and Expenses – Credit
Increase in Capital, Income and Liabilities – Credit
Decrease in Capital, Income and Liabilities – Debit
Types of Journal Voucher
On the basis of nature of transactions, journal vouchers are classified into the following
three types:
1. Journal voucher for budget expenditures.
170 Office Practice and Accounting 10
2. Journal voucher for advance transactions.
3. Journal voucher for miscellaneous transactions.
1. Journal voucher for budget expenditures
In government office, a journal which is prepared to record the budget expenditure is
simple journal voucher. It is also called budget expenditure journal voucher or general
voucher. Budget expenditure is made for purchase of goods and services rendered.
These expenses include salaries, water and electricity, telephone expense, stationery,
purchase of durable and consumable material etc. BE (Budget Expenditure) word is
written after the word Dr. to indicate the expenses is under the given budget head.
Further, the respective budget head number is also written under the budget head
number column. For example, Dr. B.E. Salary, Dr. B.E. Office Expenses, Dr. B.E. Rent,
Dr. BE Other expenses, Dr. B.E. Furniture, etc. All expenditures are debited and
concerned bank (generally Nepal Rastra Bank) is credited.
Simple journal voucher is prepared as
AGF NO. 10
Government of Nepal
........................ Office/Department/Ministry
J.V. No. .........
Date .............
Code Particulars L.F. B.H.No. Debit (Rs.) Credit (Rs.)
No.
Dr. B.E.
Cr ……..Bank
(Being payment made
for……….. through cheque/
cash.)
For example:
The District Forest Office, Bhaktapur purchased machinery for Rs. 70,000 and payment
was made through cheque no. 01 on 2072 Mangsir 28.
Required: Journal voucher
Office Practice and Accounting 10 171
SOLUTION :
AGF NO. 10
Government of Nepal
District Forest Office Bhaktapur
J.V. No. 1
Date: 2072/08/28
Journal Voucher
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. B.E. Machinery & Equipment 29511 70,000
Cr. Nepal Rastra Bank 70,000
(Being purchase of machinery and
payment made through cheque.)
Total 70,000 70,000
Receipt No. ........................ Cheque No. 01
Amount Received ............... Cheque amount: Seventy thousand only
Submitted by ..................... Approved by ...........................
Designation: Accountant Designation: Officer
Date: 2072/8/28 Date: 2072/8/29
ILLUSTRATION:
District Education Office, Kaski, has the following transactions for the month of
Poush, 2072. Prepare Goshwara Voucher (AGF No. 10)
2072 Poush 2 - Cheque no. 04567 of Rs 8,000 is issued in favor of Nepal Electricity
Authority to pay electricity bill .
2072 Poush 8 - Paid to XYZ Traders Rs. 5500 for dress purchased for office
assistant through cheque No. 04569
2072 Poush 11 - Telephone charges Rs. 3500 was paid to Nepal Telecom by cheque
no. 04587
2072 Poush 18 - A cheque (no. 04589) amounting Rs.18,000 issued to Arya
Furniture to purchase steel cupboard.
2072 Poush 29 - The salary to the staff for the month Rs.1,50,000 was distributed
by cheque no. 04590.
172 Office Practice and Accounting 10
SOLUTION
AGF NO. 10
Government of Nepal
District Education Office, Kaski
J.V. No. 1
Date: 2072/09/2
Journal Voucher
Code Particulars L.F. B.H. Debit (Rs.) Credit
No. No. (Rs.)
1 Dr B.E. Water & Electricity charge 22111 8000
Cr Nepal Rastra Bank 8000
(Being payment of Water &
Electricity charge through cheque.)
Total 8000 8000
Receipt No. ........................ Cheque No. 04567
Amount Received ............... Cheque amount: Eight Thousand only
Submitted by ..................... Approved by ...........................
Designation: Designation:
Date: 2072/09/2 Date: 2072/9/2
AGF NO. 10
Government of Nepal
District Education Office, Kaski
J.V. No. 2
Date: 2072/09/08
Journal Voucher
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
2 Dr B.E. Dress 21121 5500
Cr Nepal Rastra Bank 5500
(Being dress purchased for office
assistant)
Total 5500 5500
Receipt No. ........................ Cheque No. : 04569
Amount Received ............... Cheque amount: Five thousand five hundred only
Submitted by ..................... Approved by ...........................
Designation: Designation:
Date: 2072/09/8 Date: 2072/9/8
Office Practice and Accounting 10 173
AGF NO. 10
Government of Nepal
District Education Office, Kaski
J.V. No. 3
Date: 2072/09/11
Journal Voucher
Code B.H. Credit
No. Particulars L.F. No. Debit (Rs.) (Rs.)
3 Dr B.E. Communication Charge 22112 3500
Cr Nepal Rastra Bank 3500
(Being telephone bill paid.)
Receipt No. ........................ Cheque No.
Amount Received ............... Cheque amount: Three thousand five hundred
Submitted by ..................... Approved by ...........................
Designation: Designation:
Date: 2072/09/11 Date: 2072/9/11
AGF NO. 10
Government of Nepal
District Education Office, Kaski
J.V. No. 4
Date: 2072/09/18
Journal Voucher
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
4 Dr B.E. Furniture & Fixture 29311 18000
Cr Nepal Rastra Bank 18000
(Being purchase of steel cupboard
and paid through cheque.)
Receipt No. ........................ Cheque No.
Amount Received ............... Cheque amount: Eighteen thousands only
Submitted by ..................... Approved by ...........................
Designation: Designation:
Date: 2072/09/18 Date: 2072/9/18
174 Office Practice and Accounting 10
AGF NO. 10
Government of Nepal
District Education Office, Kaski
J.V. No. 5
Date: 2072/09/29
Journal Voucher
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
5 Dr B.E. Salary 21111 150000
Cr Nepal Rastra Bank 150000
(Being salary paid for the month.)
Receipt No. ........................ Cheque No.
Amount Received ............... Cheque amount: One lakh fifteen thousand only
Submitted by ..................... Approved by ...........................
Designation: Designation:
Date: 2072/09/29 Date: 2072/9/29
2. Journal voucher for advance transaction:
Advance is the payment made on goods or services before they are received. Advance
is given to the employees either for any expenses or material and equipment purchase
that are needed for the office. The voucher which is prepared to record the advance
transactions is called journal voucher for advance transactions. Advance is not actual
expenditure because the amount given as advance may return without expenses. So
while giving advance in government office, a journal mentioning the budget head
on which advance is given along with name and post of person to whom amount is
given, is prepared which is know as advance journal voucher. Advance is required to
be cleared submitting the statement of expenditure with supporting documents after
completion of particular task. After clearance of advance, it is considered as actual
expense. It implies that, the advance journal voucher should be prepared twice. Once
at the time of advance given and next at the time of clearance.
i. Journal voucher when advance is given:
As advance is not considered as expenditure , the amount of advance given is debited
with the name of the person or party to whom advance is given along with his position
and related budget . The corresponding amount is credited to concerned bank and
if bank is not mentioned Nepal Rastra Bank is credited. While giving advance in
Office Practice and Accounting 10 175
government office, a journal mentioning the budget head on which advance is given
along with name and post of person to whom amount is given, is prepared which is
known as advance journal voucher.
Journal voucher at the time of advance given is prepared as :
AGF NO. 10
Government of Nepal
........................ Office/Department/Ministry
J.V. No. ...........
Date .............................
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Designation and Name of
employee +Budget head+ Advance
Cr ……..Bank
(Being advance given to…… for …
through cheque/cash.)
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For Example:
Poush-9; 2072 : Issued a cheque (CH.No.00066) of Rs. 12,000 as advance to
Section Officer Mrs. Uma Pokhrel for her official tour to Illam.
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Section Officer Mrs. Uma Pokhrel 22612
Travelling expenses Advance
12,000
Cr. Nepal Rastra Bank 12,000
(Being travel expenses advance
given to Section Officer Mrs. Uma
Pokhrel.)
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
176 Office Practice and Accounting 10
ii. Journal Voucher when advance is cleared:
Advance is not actual expenditure because the amount given as advance may return
without expenses. The actual expenses may be more or less than amount of advance
given to employees. So the amount of actual expenditure is known only when the
bill of expenses is submitted by the employee. Advance is required to be cleared
submitting the statement of expenditure with supporting documents after completion
of particular task. After clearance of advance, it is considered as actual expenses.
Otherwise ,it remains as a liabilities against the name of person.
Advance clearance may be in the following conditions:
a. If whole amount of advance is returned. (E=0)
b. If whole amount of advance is spent. (E=A)
c. If expenditure is more than advance given. (E>A)
d. If expenditure is less than advance given. (E<A)
e. If advance is cleared partially.
a. If whole amount of advance is returned. (E=0)
Due to various reasons advance taken by the employees may return to the office
without any expenditure. In such case, the person or organization taking advance
returns total amount of cash or cheque of advance to the concerned authority. In this
case, the voucher is prepared as:
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. N.R. Bank/Cash
Cr. Designation and Name of employee
+Budget head+ Advance Cleared
(Being advance of ……..cleared after
returning ……..)
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: .....................................
Office Practice and Accounting 10 177
For Example:
Poush-15; 2072 : Section Officer Uma Pokhrel returned the whole amount of
advance in cash Rs. 12000 as tour to Illam has been canceled.
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Cash 12000
Cr. Section Office Uma Pokhrel 22612 12000
travelling expenses Advance
Cleared
(Being travel expenses advance
of Uma Pokhrel cleared as tour is
cancelled and after returning cash)
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
b. If whole amount of advance is spent. (E=A)
Amount of expenditure and advance may be equal. In such case, the person or
organization taking advance submits the bill of expenditure to the concerned
authority. In this case, the voucher is prepared as:
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. BE Budget Head
Cr. Designation and Name of
employee +Budget head+ Advance
Cleared
(Being advance of ……..cleared
after returning ……..)
178 Office Practice and Accounting 10
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
For Example:
Poush-15; 2072 : Section Officer Uma Pokhrel submitted bill of expenditure of
Rs 12000 after returning from her official tour of Illam and got
clearance against her advance.
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. BE Travelling expenses 22612 12000
Cr. Section Office Uma Pokhrel 12000
travelling expenses Advance
Cleared
(Being travelling expenses advance
of Uma Pokhrel cleared as per bill
submitted.)
Total 12000 12000
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
c. If expenditure is more than advance given. (E>A)
Amount of expenditure may be more than the advance given. The person or
organization taking advance submits the bill of expenditure with supporting
documents to the concerned authority and office provides the excess amount of
expenditure by cheque. In this case, the voucher is prepared as:
Office Practice and Accounting 10 179
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Budget Head
Cr. Designation and Name of
employee +Budget head+ Advance
Cleared
Cr. NR Bank
(Being advance of ……..cleared
after ……..)
Total
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
For Example:
Poush-15; 2072 : Section Officer Uma Pokhrel submitted bill of expenditure of Rs 15000
against the advance of Rs. 12000 after returning from her official tour
to Illam. Issuing cheque for excess amount, her advance is cleared.
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. BE Travelling expenses 22612 15000
Cr. Section Office Uma Pokhrel 12000
Travelling expenses Advance Cleared
Cr. NR Bank 3000
(Being travel expenses advance of
Uma Pokhrel cleared as per bill issung
a cheque for extra amount.)
Total 15000 15000
180 Office Practice and Accounting 10
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
d. If expenditure is less than advance given. (E<A)
Amount of expenditure may be less than the advance given. The person or organization
taking advance submits the bill of expenditure with either surplus cash or deposit
slips of surplus amount. In this case, the voucher is prepared as:
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Budget Head
Dr. NR Bank/Cash
Cr. Designation and Name of
employee +Budget head+ Advance
Cleared
(Being advance of ……..cleared
……..)
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
For Example:
Poush-15; 2072 : Section Officer Uma Pokhrel submitted bill of expenditure of Rs
10000 and cash Rs. 2000 against the advance of Rs. 12000 after
returning from her official tour to Illam and got clearance.
Office Practice and Accounting 10 181
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Traveling expenses 22612 10000
Dr. Cash 2000
Cr. Section Officer Uma Pokhrel
Traveling expenses Advance Cleared. 12000
(Being Travel expenses advance of
Uma Pokhrel cleared as per bill and
cash returned.)
Total 12000 12000
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
e. Date: ............... Date: ....................................
If advance is cleared partially.
Sometimes, the employees clear advance in more than one installment, i.e. advance
is not cleared at a time. Clearance of advance with less amount than the amount of
advance is known as partial clearance. This situation is very common in government
office of Nepal. The person or organization taking advance submits the bill of
expenditure in installment. In this case, the voucher is prepared as:
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. BE Budget Head
Cr. Designation and Name of employee
+Budget head+ Advance Cleared
(Being advance of ……..cleared
partially ……..)
Total
182 Office Practice and Accounting 10
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
For Example:
Poush-15; 2072 : Section Officer Uma Pokhrel submitted bill of expenditure of Rs 10000
partially against the advance of Rs. 12000 of official tour to Illam.
AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Travelling expenses 22612 10000
Cr. Section Officer Uma Pokhrel
Travelling expenses Advance
Cleared 12000
(Being travelling expenses advance
of Uma Pokhrel partially cleared.)
Total 10000 12000
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: ....................................
Prepare AGF No.10 from the following transaction of a government office of
Kathmandu for the month of Chaitra.
1. Chaitra -7 Mr. Sharma submitted a bill of expenditure of Rs. 6,000 against his
furniture advance of Rs. 5000; and issuing cheque for additional amount his
advance is cleared.
2. Chaitra -10 Travelling advance of Rs. 7,500 given to field officer Mr. Bigyan
Sharma through cheque no. 002.
3. Chaitra -15 Field officer Mr. Bigyan Sharma submitted a bill of expenditure of
Rs. 6,000 and bank voucher after returning from tour and his advance is cleared.
Office Practice and Accounting 10 183
4. Chaitra -17 Mr. Hari the Accountant, submitted a bill of expenditure of Rs. 5,000
against the office material advance and his advance is cleared.
5. Chaitra -20 Section Officer Mr. Sita Ram submitted the bank deposit voucher
bill of Rs. 25000 for the advance amount of Rs. 30,000 taken for purchase of
vehicle and his advance is partially cleared.
1 Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -7
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. B. E. Furniture and Fixture 29311 6,000
Cr. Mr. Sharma Furniture and Fixture 5,000
Advance cleared
Cr. Nepal Rastra Bank 1,000
(Being advance of Mr. Sharma cleared after
issuing a cheque for additional amount.)
Total 6,000 6,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
2 Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Field officer Mr. Bigyan Sharma Travelling 22612 7500
expenses Advance
Cr. Nepal Rastra Bank
(Being Travelling expenses advance given to 7500
field officer Mr. Bigyan Sharma.)
Total 7500 7500
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
184 Office Practice and Accounting 10
3 Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. B. E. Travelling expenses 22612 6,000
Dr. Nepal Rastra Bank 1,500
Cr. Field officer Mr. Bigyan Sharma
travelling expenses advance cleared 7,500
(Being advance of field officer Mr. Bigyan
Sharrma cleared after submitting bill of
expenditure and bank voucher)
Total 7,500 7,500
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
4
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. B. E. Office material 22612 6,000
Cr. Accountant Hari office material 1,500
advance clearance.
(Being office advance of accountant 7,500
Hari cleared as per bill of expenses
submitted by him.)
Total 7,500 7,500
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
Office Practice and Accounting 10 185
5 Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. BE Vehicle 29411 25,000
Cr. Section officer Mr. Sita Ram, vehicle 25,000
advance cleared.
(Being advance of Section officer Mr.
Sita Ram partially cleared as per the bill
submitted)
Total 25,000 25,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
3. Journal voucher for miscellaneous transactions
The financial transactions which are not related to advance and budget expenditure
are known as miscellaneous transaction. The voucher which is prepared for recording
miscellaneous transactions is called miscellaneous voucher. Following transactions
are recorded under the miscellaneous journal vouchers.
1. Revolving/Imprest fund release
2. Budget release
3. Additional budget release
4. Petty cash book
5. Salary distribution and necessary deductions
i. Employee's provident fund:
ii. Citizen investment fund:
iii. Income tax
iv. Personnel loan/Tejarath Sapati
6. Security deposit and contract tax
7. Receiving or paying of loan
8. Rectification of error
9. Inter head and inter-office budget transfer
186 Office Practice and Accounting 10
10. Yearly Closing
i. Closing petty cash fund
ii. Closing of un-cleared advance
iii. Closing of budget
1. Revolving/Imprest fund release
From fiscal year 2051/52 B.S., this system of budget release was introduced. According
to this system in the beginning of the fiscal year, the office of the Treasury and
Comptroller creates a fund for each operating level office to be released. The amount
is equivalent to 1/6th of the previous year total expenditure. It is released to the
operating level offices to meet the expenses of first month of fiscal year (i.e. Shrawan).
This first release of revolving fund is known as preliminary revolving fund. This
fund may or may not be sufficient to meet the expenses of the month. If the previous
month release remains in deficit the additional imprest fund is released. But if the
expenditure could not be made of this amount in the following month, the amount is
taken back and no additional revolving fund release is made to such office later on,
in general. Now a days , budget is released equal to the amount of previous month.
Revolving fund received journal voucher is prepared as
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Cr. Revolving / Imprest Fund
(Being Revolving Fund received.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For Example:
2072-Shrawan 5: District Education Office, Kathmandu, received a bank order
for initial revolving fund equal to 1/6th of Rs. 30,00,000 the total
budget expenditure of the last fiscal year
Office Practice and Accounting 10 187
AGF No. 10
Government of Nepal
District Education Office, Kathmandu
JV No:......
Date: .......................
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 5,00,000
Cr. Initial revolving fund 5,00,000
(Being initial revolving fund received)
Total 5,00,000 5,00,000
Receipt No. : ........... Cheque No. : ...........
Received amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
2. Budget release
Operating level office carries out its operating expenses out of the imprest fund. At the
end of every month, a statement of expenditure, bank cash book and other necessary
statements are submitted to the concerned central level office through the office of
the Treasury and Comptroller. On the basis of submitted documents and necessary
formalities, operating level office receives budget release order and bank order for the
actual expenditure of the previous month. Though sometimes the bank order may or
may not be issued reviewing the position of fund but budget release order should
be made for expenditure incurred. Budget release order refers to reimbursement of
actual expenditure of previous month. In case of difference in the amount of budget
release and bank order, the difference is adjusted to revolving fund account.
Three conditions of budget release are discussed below:
I. If budget release order and bank order are equal.
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
Date: Chaitra -10 J.V.No.:
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Cr. Budget Release
(Being budget order and bank order
received.)
Total
188 Office Practice and Accounting 10
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For example
2071 Falgun 5: Received a budget release order and bank order for the actual
expenditure of Rs. 5,00,000 of the previous month
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 5,00,000
Cr. Budget Release 5,00,000
(Being budget order and bank order
received.)
Total 5,00,000 5,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
II. If budget release order is less than bank order
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Dr. Revolving Fund
Cr. Budget Release
(Being budget order and bank order
received .)
Total
Office Practice and Accounting 10 189
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For example
2071 Falgun 5: Received a budget release order and bank order Rs 600000 and bank
order of Rs. 5,00,000.
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 5,00,000
Dr. Revolving Fund 1,00,000
Cr. Budget Release
(Being budget order and bank order 6,00,000
received.)
Total 6,00,000 6,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
III. If budget release order is less than bank order
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Cr. Revolving Fund
Cr. Budget Release
(Being budget order and bank order
received.)
Total
190 Office Practice and Accounting 10
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For example
2071 Falgun 5: Received a budget release order and bank order Rs 600000 and bank
order of Rs. 7,00,000.
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 7,00,000
Cr. Revolving Fund 1,00,000
Cr. Budget Release
(Being budget order and bank order 6,00,000
received.)
Total 7,00,000 7,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
The following transactions of a government office are given:
i. 2070-5-5 A budget release order and bank order of Rs 400000 received from
central level as the reimbursement of budget expenditure of Shrawan (i. e.
Previous month).
ii. 2070-6-5 A budget release order and bank order Rs 300000 and bank order of Rs.
2,00,000 received respectively .
iii. 2070-7-5: Received a budget release order and bank order Rs 200000 and bank
order of Rs. 3,00,000.
Required: Journal Vouchers.
Office Practice and Accounting 10 191
SOLUTIONS :
1 Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.: ........
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 4,00,000
Cr. Budget Release 4,00,000
(Being budget order and bank order
received.)
Total 4,00,000 4,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
2
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.: .........
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 2,00,000
Dr. Revolving Fund 1,00,000
Cr. Budget Release
(Being budget order and bank order 3,00,000
received .)
Total 3,00,000 3,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
192 Office Practice and Accounting 10
3
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.: .........
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 3,00,000
Cr. Revolving Fund 1,00,000
Cr. Budget Release
(Being budget order and bank order 2,00,000
received.)
Total 3,00,000 3,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
3. Additional Budget Release
Sometimes central level releases additional budget to support the working
environment and bring efficiency in operating level offices. Generally additional
budget is released in form of assets and kinds such as machinery, computer, vehicle
,furniture etc , instead of cash. Journal voucher is prepared in following way in case
of additional budget release:
Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.: .........
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Budget Head
Cr. Additional Budget Release
(Being additional budget released.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
Office Practice and Accounting 10 193
For example
2072-Poush 9 : District Forest Office, Kathmandu, received a motorcycle of Rs.
200000 as an additional budget release from central level .
Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE vehicle 29411 2,00,000
Cr. Additional Budget Release 2,00,000
(Being additional budget released.)
Total 2,00,000 2,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
Petty Cash Book
In government office, all payments are made by cheques and all receipts are banked.
There are numerous small payments on account of expenses like stationery, cartage,
coolie, refreshments to guest, etc. which cannot be paid through cheque. To avoid
this inconvenience such items of expenditure of frequent occurrence are maintained
in a separate book, known as petty cash book, which is maintained by petty cashier.
Petty cash book is maintained in columnar form. In this book separate columns are
provided for usual head of expenditure. A petty cashier makes a detail analysis of
petty payments and records under suitable heads. Petty cash book is similar to cash
book. The amount received by petty cashier from the main cashier is debited in petty
cash book and all petty payments are credited.
Generally petty cash book is operated on the reimbursement or imprest system. Petty
cash fund is created at the beginning of the definite period with the fixed amount
of money. As payments are made during the period that may be week, fortnight or
month, the amount of fund will be reduced. The petty cashier submits the statement
of expenditure and is reimbursed from the petty cash fund. This process is called
reimbursement or imprest system of petty cash fund.
The following entries are passed for creation, reimbursement and closing of petty
cash fund.
194 Office Practice and Accounting 10
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