Office Practice and Accounting 10

While creating Petty Cash Fund

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. Petty Cash Fund
Cr. Nepal Rastra Bank
(Being petty cash fund created)


Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




While getting reimbursement for Petty Cash Fund



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. BE Budget Heads (individually)
Cr. Nepal Rastra Bank
(Being petty cash fund reimbursed)



Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........





Office Practice and Accounting 10 195

While closing Petty Cash Fund
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
Cr Petty Cash Fund
(Being petty cash fund closed)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

ILLUSTRATION

Prepare journal vouchers of a government office for the following transactions,
relating to petty cash fund.

1. A cheque (Ch No. 0034) of Rs. 1000 issued to create petty cash fund under the
responsibility of Mr Akaash.
2. The following expenses are reimbursed through cheque no. 0098 as petty
cashier submitted the statement:
Taxi Rs100 Wages Rs. 50
Stationery Rs. 70 Telephone charges Rs. 40
Refreshment Rs. 80
3. Petty Cash Fund is closed after depositing balance amount of Rs. 700 into the bank.

1 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 Petty Cash Fund 1,000
Cr Nepal Rastra Bank
(Being petty cash fund created) 1,000
Total 1,000 1,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



196 Office Practice and Accounting 10

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. BE Travelling Expenses 22212 100
Dr. BE Salary 21111 50
Dr. BE Magazine and Books 22311 70
Dr. BE Communication Charge 22112 40
Dr. BE Miscellaneous Expenses 22711 80
Cr. Nepal Rastra Bank
(Being petty cash fund reimbursed) 340
Total 340 340
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


3 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 700
Cr. Petty Cash Fund 700
(Being petty cash fund closed)
Total 700 700
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Importance of Petty Cash Fund

1. Quick payment for petty items: There are numerous small payments on
account of expenses like stationery, cartage, coolie, refreshments to guest, etc.
which cannot be paid through cheque. Quick payment can be made in cash for
such types of petty expenses.

Office Practice and Accounting 10 197

2. Reduces work burden: It reduces the work load of chief accountant/cashier of
recording tiny and frequent payment.
3. Easy method: The system of petty cash fund is very easy. Even the person
without strong accounting knowledge can maintain petty cash fund.
4. Saves time: This method is very scientific and time saving. Under analytical
petty cash fund, total of each column can easily be ascertained and only
periodical total is taken for ledger posting.
5. Helps to prevent fraud: Chief accountant/cashier verifies petty cash book along
with voucher. Besides this, petty cashier is also responsible for error and fraud
in petty cash book. In this way, double checking system prevents the possible
fraud and errors.

Salary distribution and necessary deductions

Office pays salary to its employees after making necessary deductions such as
provident fund, citizen investment fund, income tax, personal loan, etc. Journal
vouchers of such deductions are prepared in following ways:
a. Employee's provident fund: Facility of provident fund is provided to the
permanent staff of government offices. While distributing salary to staff, 10%
of their salary is deducted as contribution from the staff's side and an equal
amount of the deducted sum is contributed by the employer. Both these sums
are deposited into the provident fund account. Amount of provident fund is
credited while making deduction and same amount is debited while depositing
it into the concerned account.
While deducting provident fund from salary:

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. B.E. salary 21111
Cr. Provident fund
Cr. NR.Bank
(Being salary for the month of distributed
after deducting provident fund.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




198 Office Practice and Accounting 10

While depositing deducted amount of provident fund

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. Provident fund
Cr. NR Bank
(Being amount of provident fund
deposited.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Example

1. Out of total salary of Rs.90,000 for the month of Poush, provident fund is
deducted Rs. 9,000 as per rule( i.e.10%) and balance is distributed to the staff.
Deducted amount is deposited to concerned office immediately.

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. Salary 21111 90,000
Cr. Provident fund 9000
Cr. NR.Bank
(Being salary for the month of Poush 81,000
distributed after deducting provident
fund.)
Total 90,000 90,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




Office Practice and Accounting 10 199

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. Provident fund 9,000
Cr. NR Bank 9,000
(Being amount of provident fund
deposited.)
Total 9,000 9,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

2. Salary for the month Rs.77,000 (including provident fund contribution) and
allowance Rs 10,000 were distributed after deducting provident fund Rs. 14,000
and deducted amount is deposited to concerned office immediately.


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. B.E. salary 21111 77,000
Dr. B.E. Allowances 21112 10,000
Cr. Provident fund 14, 000
Cr. NR.Bank 73,000
(Being salary and allowence for the
month distributed after deducting
provident fund.)
Total 87,000 87,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........





200 Office Practice and Accounting 10

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. Provident fund 14,000
Cr. NR Bank 14,000
(Being amount of provident fund
deposited.)
Total 14,000 14,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
b. Citizen Investment Fund : Citizen investment fund is a voluntary investment
that can be made by interested employee. If government employees make
investment in citizen investment fund, the office makes a deduction on monthly
salary, while distributing salary the office as per interest of employee. But
deduction should be within the limit of either 33% of salary or Rs. 3,00,000
annually. The journal voucher is prepared as under:
While deducting Citizen investment fund :

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. B.E. salary 21111
Cr. Citizen Investment Fund
Cr. NR. Bank
(Being salary for the month of …..
distributed after deducting citizen
investment fund.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
While depositing deducted amount of Provident fund :



Office Practice and Accounting 10 201

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. Citizen Investment Fund
Cr. NR Bank
(Being amount of Citizen Investment
Fund deposited.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



For example:
Salary for the month of Poush of Rs 90000, balance is distributed to the staff and
deduction of Rs12, 000 is made for Citizen Investment Fund. Deducted amount is
deposited to concerned office immediately.

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. B.E. salary 21111 90,000
Cr. Citizen Investment Fund 12000
Cr. NR. Bank 78000
(Being salary for the month of Poush.
distributed after deducting Citizen
Investment fund.)
Total 90,000 90,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........





202 Office Practice and Accounting 10

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. Citizen Investment Fund 12,000
Cr. NR Bank 12,000
(Being amount of Citizen Investment
Fund
deposited.)
Total 12,000 12,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


c. Income Tax: Income tax is the amount of tax to be paid by staff for their income
out of their salary. Income Tax Act has given certain exemption limit of income
for tax purpose. Government employee has to pay income tax on the income
over the exemption limit. The journal voucher of tax deduction and deposit is
prepared as under:
While deducting Income Tax from salary:

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. B.E. salary 21111
Cr. Income tax
Cr. NR. Bank
(Being salary for the month of …..
distributed after deducting Income
tax.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



Office Practice and Accounting 10 203

While depositing deducted amount of income tax

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. Income tax
Cr. NR Bank
(Being amount of Income tax
Deposited.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

For example:

Salary for the month of Poush of Rs 90,000, balance is distributed to the staff and
deduction of Rs. 8,000 is made for Income Tax. Deducted amount is deposited to
concerned office immediately

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. B.E. Salary 21111 90,000
Cr. Income Tax 8000
Cr. NR. Bank 82000
(Being salary for the month of …..
distributed after deducting Income
tax.)
Total 90,000 90,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




204 Office Practice and Accounting 10

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. Income tax
Cr. NR Bank
(Being amount of Income tax
Deposited.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



d. Personal loan/Tejarath Sapati : Office provides personal loan to the staff in
case of financial need. So they take loan from office on provision to pay in
installments from their salary each month. It implies that, a certain amount is
deducted every month from the salary for the repayment of loan. The journal
voucher of Personal loan and deposit is prepared as under:
While deducting personnel loan from salary :

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. B.E. salary 21111
Cr. Personnel loan
Cr. NR. Bank
(Being salary for the month of …..
distributed after deducting personnel
loan.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


Office Practice and Accounting 10 205

While depositing deducted amount of personnel loan


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. Personnel loan
Cr. NR Bank
(Being amount of personnel loan
deposited.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


For example:
Salary for the month of Poush of Rs 90000, balance is distributed to the staff and
deduction of Rs. 11, 000 is made for Personal Loan. Deducted amount is deposited to
concerned office immediately.

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. B.E. salary 21111 90,000
Cr. Personnel loan 11,000
Cr. NR. Bank 79,000
(Being salary for the month of Poush
distributed after deducting personnel
loan.)
Total 90,000 90,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



206 Office Practice and Accounting 10

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. Personnel loan 11,000
Cr. NR Bank 11,000
(Being amount of Personnel loan
deposited.)
Total 11,000 11,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

If all of the above discussed deductions made in the same entry
Prepare a journal voucher (AGF No. 10 ) of a government office from the information
as follows:
Cheque issued for Rs. 6,00,000 as salary for the month of Asoj 2072, after a deducting
provident fund Rs. 60,000; provident fund loan Rs. 20,000; income tax Rs. 5,000;
personnel loan Rs. 10,000 and citizen investment fund Rs. 5,000. Deposited deducted
amount in the concerned office same day.
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. B.E. Salary 21111 7,00,000
Cr. Provident fund 60,000
Cr. Provident fund loan 20,000
Cr. Income Tax 5,000
Cr. Personnel loan 10,000
Cr. Citizen Investment Fund 5,000
Cr. N.R. Bank 6,00,000
(Being distribution of salary after
deduction of various items)
Dr. Provident fund 60,000
Dr. Provident fund loan 20,000
Dr. Income tax 5,000
Dr. Personnel loan 10,000
Dr. Citizen Investment Fund 5,000
Cr. N.R. Bank 1,00,000
(Being various deductions deposited into
concerned offices)
Total 8,00,000 8,00,000


Office Practice and Accounting 10 207

Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
Security deposit and contract tax:

Constructional activities of government are carried out through contractors.
Contractors are required to deposit 5% of total contract amount as security deposit.
Such deposit will be refunded after the completion of concerned job. The security
amount is deposited into security deposit account of Nepal Rastra Bank.
While depositing the amount of security deposit


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
Cr. Security deposit account of ....
(Contractor’s name)
(Being amount of security deposit
received.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



For Example

i) Prepare a journal voucher (AGF No. 10 ) of a government office from the
information given.
Received Rs. 7,00,000 from XYZ & Co. as security deposit of contract on
2072/05/18 for bridge construction.












208 Office Practice and Accounting 10

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 7,00,000
Cr. Security deposit account of XYZ & 7,00,000
Co
(Being amount of security deposit
received.)
Total 7,00,000 7,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

While paying the amount of contract bill and charging deposit and contract tax:

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. B. E. Budget head
Cr. Security deposit account of ....
(Contractor’s name)
Cr. Contract tax
Cr. N. R. Bank
(Being amount of contract bill paid
through cheque after deducting
contract tax)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


For Example
Prepare a journal voucher (AGF No. 10) of a government office from the information given.

For construction of building, first running bill of Rs. 1,00,000 of ABC & Co. is received and
net amount was paid to the company through cheque after deducting 5% security deposit
and 5% contract tax.

Office Practice and Accounting 10 209

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. B. E. ……. 1,00,000
Cr. Security deposit account of ABC & Co 5,000
Cr. Contract tax 5,000
Cr. N. R. Bank 90,000
(Being amount of contract bill paid
through cheque after deducting
contract tax)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



While paying contract tax deposited to concerned office
Prepare a journal voucher (AGF No. 10) of a government office from the information
given.
The amount deducted as security deposit and contract tax Rs. 5000 each is deposited
to concerned office.
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. Security deposit account of ABC & 5,000
Co 5,000
Dr. Contract tax 10,000
Cr. N. R. Bank
(Being deducted amount deposited
concerned office)
Total 10,000 10,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



210 Office Practice and Accounting 10

While security deposit amount is refunded:
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. Security deposit account of .... 5,000
(Contractor’s name) 5,000
Cr. N.R. Bank 10,000
(Being security deposited refunded to
...........)
Total 10,000 10,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

For Example
Prepare a journal voucher(AGF No. 10 ) of a government office from the information
given.
After the completion of contract the amount of security deposit of Rs.7,00,000 was
refunded to XYZ & Co.

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. Security deposit account of 7,00,000
XYZ & Co. 7,00,000
Cr. N.R. Bank
(Being security deposited refunded
to XYZ & Co.)
Total 7,00,000 7,00,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



Office Practice and Accounting 10 211

Receiving or paying loan:
Lack of funds may be created in government office caused by delay in budget releases
or any other reasons. In such case, one government office can take loan from another
office with a promise to pay it later on. But approval from concerned authority is
necessary for such transactions. Journal voucher of loan is prepared as follows:
i) When loan is given or payment of loan is made to other office

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. ....... office loan
Cr. N.R. Bank
(Being loan paid to …...Office)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

For Example

Prepare a journal voucher (AGF No. 10 ) of a government office from the given
transaction.

A cheque of Rs. 50,000 was issued to District Forest Office as a payment of loan on
2071/04/12.


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. Forest office loan 50,000
Cr N.R. Bank 50,000
(Being loan paid to forest office)
Total 50,000 50,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



212 Office Practice and Accounting 10

i. When loan is taken from other office

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. NR Bank/Cash
Cr. ....... office loan
(Being loan received from …...
Office)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



For Example
Prepare a journal voucher (AGF No. 10 ) of a government office from the given
transaction.
A cheque of Rs. 90,000 is received from District Education Office as a payment of loan
on 2071/04/16


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. NR Bank/Cash 90,000
Cr. Education office loan 90,000
(Being payment of loan received
from education office)
Total 90,000 90,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




Office Practice and Accounting 10 213

Rectification of Error:
The mistake can be committed while recording transactions , which is known as
accounting errors. Such errors are either due to the lack of knowledge of accounting
principles or owing to oversight. Rectification refers to the correction of wrong entry.
It is generally committed in the process of preparing government accounts. Errors
should be recertified in time. The following step is taken to rectify the error :
Find-out wrong entry that has been passed
Prepare the correct entry to be passed
Divide the correct entry by wrong entry
Pass the rectified entry
Example
Purchase of machinery of Rs. 20, 000 wrongly debited to furniture account.

Right Entry:
Dr. BE Machinery 20,000
Cr. N.R. Bank 20,000
Wrong Entry:
Dr. B.E. Furniture 20,000
Cr. N.R. Bank 20,000


Dr. BE Machinery ÷ Dr B.E. Furniture
Cr. N.R. Bank Cr N.R. Bank


Dr. BE Machinery × Cr N.R. Bank
Cr. N.R. Bank Dr B.E. Furniture
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. BE Machinery 29511 20,000
Cr. BE Furniture 29311 20,000
(Being rectification of error)

Total 20,000 20,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........





214 Office Practice and Accounting 10

Inter head and Inter-office budget transfer
Sometime there may be lack of budget in one budget head whereas other budget head
may have the surplus budget. In such case, with the approval of Ministry of Finance
(MoF), surplus budget can be transferred to next head to meet the deficit which is
known as inter head budget. If the act of budget transfer is between two offices, it is
known as inter office budget transfer. Journal voucher is prepared in the following
way in case of budget transfer:
For inter head transfer
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(Giving Head)
Cr. BE Budget Head(Receiving
Head)
(Being budget transfer from …… to
…………………………..)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


For example:

District Forest Office Jhapa transferred Rs. 20,000 from budget head Salary to
Machinery after getting approval of concerned authority.
Government of Nepal

AGF No. 10 …………………Office/Department/Ministry J.V.No.: .........
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. BE Salary 21111 20,000
Cr. BE Machinery & Equipment 29511 20,000
(Being budget transferred from
salary to machinery)
Total 20,000 20,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Office Practice and Accounting 10 215

For inter office transfer (if transferred to other office)


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. Budget Release
Cr. NR Bank
(Being budget transferred to
….office


Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




For Example:
A cheque of Rs. 9,000 is issued to District Forest Office, Jhapa as budget transfer after
getting approval of Ministry of Finance.

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. Budget Release 9,000
Cr. NR Bank 9,000
(Being budget transfer to District
Forest Office, Jhapa)

Total 9,000 9,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........








216 Office Practice and Accounting 10

For inter office transfer (if received from other office)

Government of Nepal
AGF No. 10 …………………Office/Department/Ministry J.V.No.: .........
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. NR Bank
Cr. Budget release
(Being budget transferred received
from ….office)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

For Example:

A cheque of Rs. 8,000 is received from District Education Office, Illam as budget
transfer after getting approval of Ministry of Finance.

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. NR Bank 8,000
Cr. Budget release 8,000
(Being budget transfer received from
District Education Office, Illam)

Total 8,000 8,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........



v. Yearly closing
At the end of Ashad yearly closing is made in government accounting because fiscal
year of government starts from Shrawan and ends at Ashad every year. On 31st
Ashad budget release a/c, budget expenditure a/c, petty cash fund a/c, un-cleared
advance a/c are to be closed. If any budget surplus remains that should be transferred

Office Practice and Accounting 10 217

to consolidated a/c or Budget Freeze a/c. Journal voucher is prepared in the following
way in case of closing of fiscal year.
While closing Petty Cash Fund

Government of Nepal
AGF No. 10 …………………Office/Department/Ministry J.V.No.: .........
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Cr. Petty Cash Fund
(Being petty cash fund is closed by
depositing amount into bank)


Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........
For Example:

On 31 Ashad 2071, District Education Office, Bhaktapur closed its petty cash fund of
Rs 1000 by depositing into bank.
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 1,000
Cr. Petty Cash Fund 1,000
(Being petty cash fund is closed by
depositing amount into bank)
Total 1,000 1,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Closing of un-cleared advance : Sometime advance given to employee may not be
cleared at the end of fiscal year. Such expenses should be cleared artificially treating
as expenses equal to advance. A journal voucher is prepared assuming that the
expenditure is equal to the amount of advance. Journal voucher is prepared in the
following way in case of artificial clearance of advance.


218 Office Practice and Accounting 10

The following transaction is given for example:
Section Officer Amar Sharma did not clear the advance amount of Rs 2000 for his
official tour to Biratnagar till the end of fiscal year. The advance is closed by passing
the journal voucher of artificial clearance.
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. BE Travelling Expenses 22612 2,000
Cr. Section Officer Amar Sharma 2,000
Travelling Expenses Advance Cleared
artificially
(Being travelling expenses advance of
Amar Sharma cleared artificially)
Total 2,000 2,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Annual closing of budget
For annual closing of budget release and budget expenditure a reverse entry to the
original entry is passed. These accounts are closed at the end of fiscal year. For this,
total budget expenditure should be matched with the total budget release amount.
Journal voucher is prepared in following way in case annual closing.

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. Budget release
Cr. Budget Head
Cr. NR Bank (Unspent amount-
Freeze)
(Being release and budget
expenditure are closed.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Office Practice and Accounting 10 219

For Example:
On 31 Ashadh 2071, District Health Office Kathmandu, closed the account of budget
release of Rs. 18,00,000 and budget expenditure of Rs. 16, 00,000.
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. Total Budget release 22612 2000
Cr. Total Budget expenditure 2000
Cr. NR Bank (Budget Freeze A/c)
(Being release and budget
expenditure is closed.)
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


Illustrations
1 Prepare AGF No. 10 from the following transaction of District Education Office,
Kathmandu for the month of Shrawan 2072.
2 : Received a cheque for the amount of Rs. 5,00,000 as initial revolving fund.
9 : A cheque of Rs. 6,000 issued in favour of Mr. Sharma for the purchase of sofa set
for office in advance.
20 : A cheque of Rs. 1,000 paid to ABC tailoring for the payment of dress of office
staff.
29 : Mr. Sharma submitted a bill of expenditure of Rs. 8,000 and issuing cheque for
additional amount his advance is cleared.


Government of Nepal
District Education Office/Department/Ministry
AGF No. 10 Kathmandu J.V.No.: 1
Date: 2062-04-02
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 22612 5,00,000
Cr. Initial Revolving fund 5,00,000
(Being initial revolving fund released)
Total 5,00,000 5,00,000



220 Office Practice and Accounting 10

Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




Government of Nepal
District Education Office/Department/Ministry
AGF No. 10 Kathmandu J.V.No.: 1
Date: 2062-04-09
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Mr. Sharma Furniture & Fixture
advance 29311 6,000
Cr. Nepal Rastra Bank 6,000
(Being office furniture advance given
to Mr. Sharma.)
Total 6,000 6,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




Government of Nepal
District Education Office/Department/Ministry
AGF No. 10 Kathmandu J.V.No.: 1
Date: 2062-04-02
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. B. E. Dress 21121 1,000
Cr. N. R. Bank 1,000
(Being dress material purchased)
Total 1,000 1,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

Office Practice and Accounting 10 221

Government of Nepal
District Education Office/Department/Ministry
c. Government of Nepal
AGF No. 10 Kathmandu J.V.No.: 1
Date: 2062-04-29
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. B. E. Furniture & Fixture 29311 8,000
Cr. Mr. Sharma Office Furniture & 6,000
Fixture Advance cleared 2,000
Cr. Nepal Rastra Bank
(Being advance of Mr. Sharma
cleared after issuing a cheque for
additional amount.)
Total 8,000 8,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........





2 On the basis of following transactions prepare journal voucher( AGF No. 10)
of Inland Revenue Office, Kathmandu.
Asoj-5; 2071 : Received budget release order for actual expenditure of last month
of Rs. 80,000 and bank order of Rs. 115,000
Asoj-9; 2071 : Travelling Expenses advance of Rs. 10,000 given to field officer Mr.
Hari Lal through cheque no. 002.
Asoj-15; 2071 : Field officer Mr. Hari Lal submitted a bill of expenditure of Rs. 8,000
and bank voucher after returning from tour and his advance is
cleared.
Asoj-30; 2071 : Issued a cheque in favour of the landlord for the rent of Asoj , Kartik
and Mangsir @ Rs. 5,000 per month.

















222 Office Practice and Accounting 10

Journal Voucher 1
Journal Voucher
Date: .................
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
071-6-5 Dr. N. R. Bank 29311 1,15,000
Cr. Budget Release 80,000
Cr. Revolving Fund 35,000
(Being budget release order received)
071-6-9 Dr. Field officer Mr. Hari Lal 22612 10,000
Travelling Expenses Advance
Cr. Nepal Rastra Bank 10,000
(Being Travelling Expenses advance
given to field officer Mr. Hari Lal.)
071-6-15 Dr. B. E. Travelling Expenses 22612 8,000
Dr. Nepal Rastra Bank 2,000
Cr. Field officer Mr. Hari Lal Traveling 10,000
expenses Advance cleared
(Being advance of field officer Hari
Lal cleared after submitting bill of
expenditure and bank voucher)
071-6-30 Dr. B. E. Rent 22121 5,000
Dr. Landlord Rent Advance 10,000
Cr. Nepal Rastra Bank 15,000
(Being rent for the month paid with
advance rent of two months)
Total 1,40,000 1,40,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

3 Prepare AGF No. – 10, from the following transactions:

Sawan-3 : Received an initial fund equal to 1/6th of budget expenditure of Rs.
3,60,000 of last year.

Sawan-9 : Mr. Hari Accountant, submitted a bill of expenditure of Rs. 5,000 against
the office expenses advance and his advance is cleared.

Sawan-20 : Distributed salary after deducting Rs. 4,000 for provident fund and Rs.
1,000 for income tax out of total salary of Rs. 45,000.




Office Practice and Accounting 10 223

Government of Nepal
District Education Office/Department/Ministry
AGF No. 10 Kathmandu J.V.No.: 1
Date: .....................
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Shrawan Dr. N. R. Bank 22612 60,000
3 Cr. Initial Revolving Fund 60,000
(Being initial revolving fund
received on the basis of last year's
expenditure)
Shrawan Dr. B. E. Office material 22311 5,000
9 Cr. Accountant Hari office material
advance clearance. 5,000
(Being office advance of
Accountant Hari cleared as per bill
of expenses submitted by him.)
Shrawan Dr. B. E. Salary 21111 45,000
Cr. Providend fund 4,000
20
Cr. Income tax 1,000
Cr. N. R. Bank 40,000
(Being salary for the month
distributed after necessary
deductions.)
Total 1,10,000 1,10,000
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


4 You are given the following transactions of a government office
Magh-5 : Received a bank order of Rs. 80,000 and budget release order for Rs.
1,40,000 for the expenditure of the month.
Magh-9 : Due to the cancellation of tour, section officer Mr. Parajuli returned entire
amount of his Travelling Expenses advance of Rs. 4,500. He got clearance
of advance after submitting bank voucher.

Magh -28 : Issued a cheque of Rs. 90,000 after deducting provident fund of Rs.7,500,
income tax Rs. 2,000, tejarath loan Rs. 2,500 and deducted amount
deposited into concerned account next day.
Required: Journal Voucher



224 Office Practice and Accounting 10

Government of Nepal
District Education Office/Department/Ministry
AGF No. 10 Kathmandu J.V.No.: 1
Date: .....................
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Magh Dr. Nepal Rastra Bank 80,000

5 Dr. Revolving Fund 60,000
Cr. Budget Release 1,40,000
(Being bank order and budget
release order received.)
Magh Dr. N. B. Bank 4,500
9 Cr. S.O. Parajuli Travelling
Expenses Advance cleared 4,500
(Being Travelling Expenses
advance of S.O. Parajuli cleared as
per bank voucher submitted due to
the cancellation of tour)
Magh Dr. B. E. Salary 21111 1,02,000
28 Cr. Provident Fund 7,500
Cr. Income Tax 2,000
Cr. Tejarath Loan 2,500
Cr. N. R. Bank 90,000
(Being salary for the month
distributed after necessary
deductions.)
Magh Dr. Provident Fund 7,500
Dr. Tejarath loan 2,500
29
Dr. Income tax 2,000
Cr. N. R. Bank 12,000
(Being deducted amount deposited
to respective accounts.)
Total 2,61,500 2,61,500
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........









Office Practice and Accounting 10 225

EXERCISE



Answer the following questions in one sentence.
1. How many types of Goswara Vouchers are used in government accounting
system?
2. What do you mean by budget release?


Practical Problems


Journal voucher for budget expenditure:

1. From the following transactions of District Health Office, Siraha,
prepare journal voucher (AGF No. 10) for the month of Falgun.
1. Paid by cheque for purchase of furniture of Rs. 5,000.
4. Issued a cheque of Rs. 9,000 for office rent for the month Rs. 4,500.
9. Purchased office supplies for Rs. 7,200 and paid by cheque.
14. Issued a cheque of Rs. 500 for the establishment of petty cash fund.
17. Issued a cheque of Rs. 40,000 to purchase furniture.
22. Issued cheque of Rs. 6000 for printing and stationery.

2. Following transactions are relating to District Education Office,
Janakpur, prepare Goshwara Voucher (AGF No. 10).
Jestha 1 – cheque no. 009 of Rs 20,000 is issued in favor of XYZ Furniture
for the payment of furniture purchased.
Jestha 3 – Paid Rs. 7,000 for office materials through cheque No. 0010.
Jestha 5 – The salary of the staff for the month Rs. 1,00,000 was distributed
by cheque no. 0150.
Jestha 10 – Telephone charges Rs. 10,000 was paid to Nepal Telecom by
cheque no. 0530.
Jestha 12 – Rs.8,000 paid to Shrestha Trading through cheque no. 0205 for
providing machinery .

3. Prepare a journal voucher from the following transactions which took
place in a government office.
i. Cheque issued for payment of rent Rs. 11,000 on 2072/2/4.
ii. Issued cheque of Rs. 1,50,000 for purchase of motorcycle on 2072/2/9.
iii. Paid for fuel for office vehicle by cheque of Rs. 5000 on 2072/02/12.





226 Office Practice and Accounting 10

iv. Issued cheque of Rs. 6,000 for payment of refreshment expenses on
2072/02/17.
v. Paid Rs. 10,000 for salary on 2072/02/30.

4. From the following transactions of District Education Office, Ilam,
prepare AGF No. 10 for the month of Kartik.

i. 2070/7/3 : Office rent of Rs. 18,000 paid by cheque no.07655.
ii. 2070/7/3 : Paid stationery expenses through cheque no.0 7689 Rs. 1200.
iii. 2070/7/3 : A second hand motorcycle purchased for office for Rs. 45000
through cheque no. 07698.
iv. 2070/7/3 : Paid for telephone bill Rs.1500 and Rs. 1,000 paid for electricity
bill through cheque no 07699 and 07700 respectively.
v. 2070/7/3 : Paid Rs. 1000 for XYZ cafe through cheque no 7710.

5. Prepare Goshwara Voucher (AGF No. 10) from the following transactions
relating to District Forest Office, Parbat for the month of Magh.
Magh 3 : A cheque is issued to pay hospitality expenses of Rs. 1500.
Magh 5 : Purchased dress for Rs.2500 and medical expenses Rs. 6000 of staff
paid by cheque.
Magh 10 : Fuel expenses for office is paid by cheque Rs. 8900.
Magh 15 : A cheque of Rs. 5000 issued to ABC Furniture for the payment of
sofa set for office.
Magh 24 : Training charge Rs. 6500 is paid by cheque.
Magh 29 : Bill of computer printer Rs. 25,000 paid through Cheque

Journal voucher for advance transactions:


6. You are required to prepare Goshwara Voucher (AGF No. 10) from the
given transactions which are relating to the District Agriculture Office,
Dhankuta for the month of Baishak 2073.

Baishak 3 : A cheque issued in favor of Mr. Kumar as advance to purchase
furniture of Rs. 22000.
Baishak 5 : Paid Rs. 3000 to accountant Dilip in advance for the purchase of
dress for office staff.
Baishak 9 : Machinery purchases advance of Rs. 44,000 to Mr. Pradhan has
been cleared against the bills for purchases of Rs. 47,000 by issuing
a cheque for extra amount.
Baishak 13 : A cheque of Rs. 12,000 issued in favor of Mrs. Anita in advance for
field visit .




Office Practice and Accounting 10 227

Baishak 17 : Mr. Maharjan submitted the bills and bank voucher for the
purchase of furniture Rs. 10,000 against the advance of Rs. 13,000
for the same.
Baishak 22 : Mr. Lama's advance of Rs. 30,000 for purchase of computer is
cleared by issuing cheque against the bill so submitted by him for
Rs. 32,000


7. The following transactions of a government office is given to you
i. To purchase a computer, advance of Rs. 29,000 given to Mrs. Yadav
through cheque no 0986.
ii. Furniture advance of accountant Karki Rs. 7, 000 has been cleared against
the bills of Rs. 10,000 by issuing cheque for the extra amount.
iii. Additional cheque of amounting Rs. 2000 issued to Thapa for the clearance
of travelling expenses advance, the bill of expenditure was Rs. 17000
iv. A cheque issued to Mrs Pradhan for furniture purchase advance of Rs.
24,000.
v. A cheque of Rs. 24,000 issued in favor of the landlord for house rent of
coming 3 months.
Required : Goshwara voucher.

8. From the following transactions of District Education Office, Morang,
prepare AGF No. 10 for the month of Bhadra.
Bhadra 2 : Issued a cheque for Rs. 15,000 in favor of section officer Prem
Limbu for purchase of furniture.
Bhadra 5 : Issued a cheque to land lord for Rs. 8,000 as advance rent.
Bhadra 7 : Advance paid to Kharidar Kamal Rs. 9,000 for official tour to
Dhading.
Bhadra 13 : Advance paid to Mr Bishal of Rs. 35,000 for the purchase of
modern sofa set for office , through cheque.
Bhadra 19 : Kharidar Kamal submitted the bank deposited voucher for Rs.
9,000 due to tour cancelled and his advance cleared.
Bhadra 22 : Mr Bishal presented the bills for purchase of sofa set of Rs. 36,500
against the advance of Rs. 35,000 and office issued a cheque for
extra amount his advance is cleared.
Bhadra 28 : A cheque of Rs. 45,000 issued to Mrs. Bimala Rai as advance to
purchase a scooter.

9. From the following transactions relating to district irrigation office
Bhojpur, prepare AGF no 10.
Chaitra 2 : Account officer Mr Harish Presented the bill of Rs 4700 after
purchasing furniture and his advance is cleared.



228 Office Practice and Accounting 10

Chaitra 3 : Machinery advance of Kharidar Mrs. Kamala of Rs. 12000 has
been cleared against the bill of Rs 15,000.
Chaitra 7 : Due to the cancelation of tour, field supervisor Mr. Ghimire
returned the travelling expenses advance of Rs. 5500 and his
advance is cleared.
Chaitra 15 : Section officer Mrs. Parajuli submitted the bill of Rs 16500 and
pay-in- slip after purchasing office material against her advance
of Rs 20000.

Journal voucher for salary and deductions:


10. The following transactions of a government office are given to you
i. Out of the total salary for the month of Rs. 80,000, a sum of Rs. 12,000 for
provident fund, Rs. 8,000 for staff loan and Rs. 4,000 for income tax were
deducted and rest were paid through cheque no. 0987755.
ii. Paid salary by issuing cheque of Rs. 84,000 for the month after deducting
provident fund Rs. 15,000, income tax Rs. 4,000 and advance salary of Rs.
6,000.
iii. Out of total salary for the month of Rs. 3,30,000 (including government
contribution) ;Rs. 60,000 Provident fund , Rs. 11,000 for provident fund
loan and Rs. 2,500 for income tax were deducted and rest were paid by
cheque.
iv. Salary of Rs. 90,000 after deducting provident fund Rs. 9,000 ,income tax
of Rs. 2,000 provident fund loan of Rs 1,000 by cheque.
v. Salary of the month Rs. 2,00,000 has been distributed after deducting
provident fund as per rule and Rs. 1,500 for provident fund loan.
Required: Journal Voucher.

11. Prepare a journal voucher from the following transactions.
a. Salary of Rs. 1,00,000 was distributed after deducting Rs.10, ,000 as
provident fund and Rs. 1,000 as income tax. On the same day deducted
amounts were deposited into the concerned accounts.
b. Salary of the month Rs. 2,20,000(with government contribution) has been
distributed after deduction of Rs. 40,000 for provident fund and Rs. 5, 500
for Tejarath loan.
c. Issued a cheque of Rs. 1,80,000 for distribution of salary after deducting
Rs. 10,000 for provident fund, Rs. 3,500 for income tax. The deductions
were deposited in the concerned office on the same day.
d. Out of total salary of the month Rs. 8,80,000 (with government contribution),
and allowances of Rs. 25,000 were distributed after deducting provident
fund as per rule ; Rs. 7,000 for income tax and Rs. 12000 for personal loan.



Office Practice and Accounting 10 229

Journal voucher for revolving/imprest fund and budget release:

12. Prepare a journal voucher from the following transactions that relate to
government offices.
a. Received Rs. 5,00,000 as initial revolving fund equal to 1/6th of the actual
expenditure of previous year Rs. 30,00,000 from the office of treasury and
comptroller.
b. Received Rs. 7,00,000 as revolving fund being 1/6th of the actual
expenditure of previous year.
c. Received a bank order of Rs. 4,50,000 and budget release order for Rs.
5,00,000.
d. Received a bank order of Rs. 8,50,000 and budget release order for Rs.
7,00,000.
e. Rs. 5,00,000 is received as revolving fund through bank transfer.

Journal voucher for petty cash fund:

13. Enter the following transactions in the petty cash book.
i. Created petty cash fund with Rs. 1,000 under the responsibility of Mr. Dhan
Bahadur on Asoj 1.
ii. At the end of the month, petty cash fund is reimbursed by issuing a cheque equal
to the following expenses:
Maintenance Rs. 60, Stationery Rs. 90, Water charge Rs. 55, Canteen expenses Rs.
25 and Telephone charge Rs. 15.

Journal voucher for mix transactions


14. The following transactions are relating to District Health Office,
Lalitpur.
Shrawan 2 : Bank order letter of Rs. 2,00,000 for initial revolving fund.
Shrawan 15 : Issued Rs. 5,000 for purchase of office materials through cheque
no.00
Shrawan 20 : A cheque (Ch. no. 002) of Rs. 20,000 issued in advance to Mr. Tamang
to purchase office rack.
Shrawan 31 : A cheque issued for salary for the month of Shrawan Rs. 71,000
and allowance Rs. 20,000 has been distributed after deducting the
provident fund of Rs. 8,000 and provident fund loan of Rs. 1,000.
Required : Journal voucher for the month of Shrawan.








230 Office Practice and Accounting 10

15. The following transactions are given:
Falgun -1 : Received bank order letter of Rs. 1,15,000 including budget release
order for expenses for the month of Magh of Rs. 55,000 and additional
revolving fund of Rs. 60,000
Falgun -5 : Issued cheque of Rs. 10,000 to Mr. Hamal to purchase office materials,
as in advance.
Falgun -10 : Issued cheque of Rs. 11,000 to purchase furniture .
Falgun -12 : Issued a cheque of Rs 5,000 to Mr. Thapa as travelling expenses
advance.
Required : Journal voucher.

16. Prepare Goshwara Voucher (AGF No. 10) for the following transactions
that relate to a government office.
1. Received bank order letter for Rs. 5, 00,000 and budget released order for Rs.
5,50,000 for expenditure of last month.
2. The first running bill of ABC Construction of Rs. 6,00,000 is approved and after
deducting 5% as security deposit and 5% as contract tax , the net amount was
paid by cheque no 07687.
3. Salary for the month of Asoj Rs. 3,00,000, and allowance Rs 50,000 distributed
through cheque after deducting provident fund as per rule, provident fund loan
Rs. 12, 500 , and advance salary of Kharidar Ms. Kirtee Rs. 7,000. The deducted
amounts were deposited into concern account immediately.
4. The petty cash fund of Rs. 2,000 deposited into bank and the petty cash fund is
closed

17. The given transactions are related to Inland Revenue Office, Jhapa.
Prepare each Goshwara Voucher separately for every transaction.
i. Cheque issued for purchase of printer machine of Rs. 12,000.
ii. Rs. 14,000 transferred from budget head furniture to budget head salary with
approval of the concerned authority.
iii. Mr. Rai submitted a bill of expenditure of Rs. 16,000 and bank deposit voucher,
against his furniture advance of Rs. 20,000 and got clearance.
iv. A single cheque is issued to section officer Ms Arya Parajuli as advance for
purchase of furniture Rs 7,500, for office material Rs. 5000 and for repair of
scooter Rs. 3,500.
vi. Refreshment bill paid Rs. 2,500 through cheque no. 056446.
vii. Out of total salary of Rs. 88,000 (with government contribution), provident
fund Rs. 16,000 and income tax Rs.2,500 deducted and paid to staff. Deducted
amount deposited to concerned office.





Office Practice and Accounting 10 231

18. You are given the following transactions of a government office for the
month of Jestha.
Jestha 4 : A cheque of Rs. 45,000 is issued to purchase books for office library
Jestha 8 : Hospitality expenses advance of Subba Krishna Rs. 11,000 has been
cleared against the bills of expenditure of Rs. 13, 000 by issuing cheque
for balance amount.
Jestha 12 : After approval of concerned authority Rs. 35,000 is transferred from
dress to fuel budget head.
Jestha 17 : A cheque of Rs. 15,000 is issued in advance to section officer Kamalesh
for the training expenses.
Jestha 22 : Rs. 6,700 paid to XYZ and Links through cheque for internet
connection.
Required : Journal voucher.

19. The following transactions are relating to District Agriculture Office,
Bhaktapur for the month of Magh 2072.
Magh 1 : Received bank order letter of Rs. 8,00,000 for revolving fund.
Magh 5 : Issued a cheque of Rs. 9500 in favor of Kharidar Puspa as advance for the
purchase of water pump and Rs. 5,000 for hard disk of computer.
Magh 8 : Rent to landlord Manandhar paid through cheque for the month of
Poush, Magh, Falgun and Chaitra @Rs. 7,500 per month.
Magh 15 : A cheque of Rs 10,500 issued to office assistant Samundra as per hospital
bill submitted .
Magh 18 : As per the approval of Ministry of Finance, a cheque of Rs. 15,000 issued
to education office as budget transfer
Magh 27 : Out of the total salary for the month Rs. 2,50,000, a deduction of 10%
for provident fund, Rs. 2,000 for income tax, Rs.4,500 for tejarath loan
and Rs. 7,000 for citizen investment fund was made and rest was paid by
cheque.
Magh 29 : The deducted amounts were deposited into corncern account.
Required : Journal voucher (AGF No. 10)

20. The following transactions of a government office are given:
Magh 1 : Bank order of Rs. 3,00,000 for the reimbursement of revolving fund of Rs.
1,25,000 and budget release order of Rs. 1,75,000 has been received.
Magh 5 : Issuing a cheque of Rs 1000 to Yadav, petty cash fund is created.
Magh 11 : Tax and insurance charge Rs 6500 and Rs 3000 respectively paid for office
van.
Magh 15 : Fuel advance of senior assistant Rajan Rs. 10,000 has been cleared against
the bill of Rs. 9,000 after receiving bank voucher for the balance amount.






232 Office Practice and Accounting 10

Magh 28 : Paid salary by issuing cheque of Rs. 84,000 for the month of Magh after
deducting provident fund Rs. 15,000, Income tax Rs. 3,000 and advance
salary of Rs. 2,000.
Required : Journal Vouchers.

21. The following transactions of an operating office are given:
Shrawan 2 : Initial imprest fund received Rs. 9,00,000 as 1/6 of the last year actual
budget expenditure.
Shrawan 8 : Purchased office supplies of Rs. 8,000 through cheque no. 5365.
Shrawan 12: Cheque no. 4476 issued in favor of Mr. Dhimal, as advance to purchase
of 90 meter carpet @ Rs. 400/meter
Shrawan 15: The first running bill of Welcome Construction of Rs. 1,20,000 is approved
and after deducting 5% as security deposit the rest amount is paid by
cheque no 4563.
Shrawan 22: On the basis of the bill vouchers of carpet purchase submitted by Mr.
Dhimal for Rs. 32,000 his advance is cleared partially.

Required : Journal voucher.

22. The given transactions are related to Inland Revenue Office, Jhapa.
Prepare each goshwara voucher separately for every transaction.
Baishakh 1 : Received bank order for Rs. 18,00,000 and budget release order letter
of Rs. 15,00,000 .
Baisakh 2 : Issued a cheque of Rs. 2500 for the establishment of petty cash fund
under the responsibility of Mrs. Sushma.
Baishakh 5 : As per the approval of authority, a cheque of Rs. 20,000 issued to
District Road Office as loan.
Baishakh 8 : Rs. 17,000 is transferred from budget head rent to budget head
machinery getting approval from authority.
Baisakh 13 : Issued a cheque to house owner for the rent of Chaitra and Baisakh @
Rs. 10,000 per month after deducting 15% rent tax at source.
Baishakh 15 : A cheque is received from district road office as payment of loan.
Baishakh 20 : An error, in which payment for dress Rs. 4,500 was wrongly debited to
communication charge, now detected and rectified.
Baishakh 28 : Petty cash fund is reimbursed by issuing a cheque equal to the following
expenses:
Repair Rs. 100 , Water charge Rs. 75, Coolie and cartage Rs. 105, Newspaper
Rs. 120, Canteen expenses Rs. 325 and Recharge card of Rs. 50.
Baishakh 30 : Salary for the month Rs.99,000 (including government contribution)
and allowance Rs 10,000 distributed after deducting provident fund
Rs 18,000, tejarath loan Rs 7,000 and income tax Rs 1,500. The deducted
amount deposited into concern account next day.

Office Practice and Accounting 10 233

23. The following transactions of District Agriculture Office, Kavre are
given:
a. Petty cash fund, established under the responsibility of Bigyan, is closed after
depositing balance amount of Rs. 2, 000 into the bank.
b. Advance to section officer Mr. Dil Kumar Rs. 7000 for medical expenses is
not cleared till the end of Ashad. By passing the journal voucher of artificial
clearance, account is closed for current fiscal year.
c. Office closed its account of budget release of Rs. 5,00,000 and budget expenditure
of Rs. 4,50,000 at the end of Ashad.


24. Prepare goshwara vouchers (AGF no. 10) on the basis of following
transactions of District Education Office, Palpa.

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 2063/04/15 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 2063/04/20 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.

25. Prepare journal voucher (A.G.F. No. 10) of District Education Office,
Kathmandu from the following transactions.
a. On 2066/4/11 Rs. 8,00,000 was received as revolving fund through N.R.B.
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 2066/04/30 out of total salary to staff Rs. 1,50,000 for the month of
Shrawan Rs. 25,000 were dedicated as provident fund and the balance
was distributed by issuing a cheque No. 015.

26. Prepare goshwara voucher (AGF. No. 10) of District Administration
Office, Dolakha for the following transactions.
a. On 2067/5/12 received bank order letter of Rs. 10,00,000 as revolving fund
release.



234 Office Practice and Accounting 10

b. On 2067/5/18 purchased computer for Rs. 35,000 and paid through cheque
No. 006789.
c. On 2067/5/25 total salary (including provident fund) for the month of
Bhadra Rs. 1,98,000 was distributed deducting Rs.36,000 as provident
fund and Rs. 4000 for income tax through cheque No. 006790.
d. On 2067/5/28 as per statement submitted by Section Officer Sarita Puri, her
advance of Rs. 36,000 was cleared and excess expenditure amount Rs. 500
paid through cheque No. 006791.

27. Prepare goshwara voucher (AGF N0. 10) of District Education Office,
Dolpa from the following transactions.
a. On 2067/4/5 received bank order of Rs. 9,00,000 as revolving fund release.
b. On 2067/4/15 the telephone charge Rs. 7,000 for the month of Asar was
paid through cheque no 01234.
c. On 2067/4/17 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.
d. On 2067/4/27 office furniture purchase advance of storekeeper K. Pradhan
Rs. 1,20,00 has been cleared against the bills of purchase of Rs. 1,25,000 by
issuing cheque 01236 for the balance amount.
e. On 2067/4/30 out of total salary to staff Rs. 2,50,000 for the month of
Shrawan Rs. 25,000 was deducted as provident fund and the balance was
distributed by issuing a cheque No. 01237.

28. Prepare goshwara voucher (AGF N0. 10) of District Education Office,
Baglung on the basis of following transactions.
a. On 2068/4/20 Out of total salary for the month of Shrawan Rs. 2,00,000 was
distributed after deducting Rs. 20,000 as provident fund through cheque
No. 009
b. On 2068/4/25 Rs. 15,000 was paid for purchasing office furniture through
cheque no. 010.
c. On 2068/4/30 Nayab Subba Mr. Hari was paid an amount of Rs. 10,000 for
programme travelling expenses in advance through cheque no. 011
d. On 2068/5/1 Petty cash fund of Rs. 5,000 was established through cheque
no. 012
e. On 2068/5/5 Nayab Subba Mr. Hari submitted the expenditure bill of
programme travelling expenses with bank voucher of Rs. 1,000 and his
advance was cleared.








Office Practice and Accounting 10 235

29. Prepare journal voucher (A.G.F. No. 10) of District Education Office,
Rukum from the following transactions.
a. On 2069/4/4 Rs. 10,00,000 was received as revolving fund through N.R.B.
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 trust and Rs. 3,000
income tax to distribute salary for the month of Shrawan.
e. On 2069/04/28 advance cleared by accountant Prem Shrestha for the
purchase of computer against the bill.

30. Prepare goshwara voucher (A.G.F. No. 10) on the basis of following
transactions of the District Agriculture Office, Parbat:
a. On 2069/4/10 received Rs. 15,00,000 as revolving fund is received through
NR. Bank transfer.
b. On 2069/4/11 Section Officer Hari Sharma was paid Rs. 40,000 as an
advance for the purchase of computer for office by cheque no. 0013.
c. On 2069/4/12 paid electricity charge of office Rs.5,000 by cheque no. 0014.
d. On 20694/25 office rent for the month of Shrawan Rs. 10,000 was paid by
cheque no. 0015
e. On 2069/4/30 Section Officer Hari Sharma's advance for the computer was
being cleared by approving the bill of Rs. 45,000 and excess expenditure
paid to him issuing cheque no. 0016.

31 Prepare a general voucher (Auditor General Form No. 10) of the District
Agriculture Office, Kathmandu from the following transactions:
a. On 2066/8/1 out of total staff salary of Rs. 90,000 for the month of Kartik,
Rs. 9,000 was deducted for provident fund and the balance was distributed
by issuing cheque no. 0011.
b. On 2066/8/5 through cheque no. 0012 Rs. 3,000 was paid in advance to
section officer Mr. Bimal Krishna Shrestha as traveling allowance.
c. On 2066/8/15 Bira Furniture Industry was paid Rs. 28,000 through cheque
no. 0013 for providing furniture to the office.

32. Prepare a general voucher (Auditor General Form No. 10) of the District
Forest Office, Lalitpur from the following transactions:
a. On 2067/4/5 Rs. 5,00,000 is received as revolving fund through N.R.B.
transfer.



236 Office Practice and Accounting 10

b. On 2067/4/7 through cheque no. 00115, Rs. 40,000 was paid in advance to
store-keeper Nabin Shrestha for the purchase of office furniture.
c. On 2067/4/10 petty cash fund of Rs. 5,000 was created entrusting the
responsibility to accountant Nirmal Bista through cheque no. 00116.

33. Prepare a general voucher (Auditor General Form No. 10) from the
following transactions:
a. On 2070/4/15 Department of Education received Rs. 27,00,000 as revolving
fund through N.R. Bank.
b. The salary of the staff was distributed on 2070/5/1 by cheque. No. 3165 out
of total salary Rs. 2,40,000, provident fund deducted as Rs. 24,000
c. On 2070/5/5 Jalapa Furniture Center was paid cash Rs. 18,000 for furniture
purchased.

34. Prepare a general voucher (Auditor General Form No. 10) of the District
Agriculture Office, Tanahun from the following transactions:
a. On 2070/4/2, Rs. 20,00,000 is received as revolving fund through bank
transfer.
b. On 2070/4/30, Bira Furniture Industry was paid Rs. 20,000 for furniture
purchased through cheque no. 001.
c. On 2070/5/2, Rs. 30,000 was paid in advance to store keeper Bimala
Maharjan for producing materials needed for the office through cheque
no. 002.

35. Prepare A.G.F. No. 10 (goshwara voucher) from the following
transactions:
a. Ministry of Education received Rs. 86,00,000 as additional revolving fund
on 2069- 5-28 through Nepal Rastra Bank.
b. On 2069-5-29 telephone charge Rs. 22,000 was paid to Nepal Telecom by
cheque No. 0894.
c. In 2069-5-30 Accountant Mrs. Sita Ghimire was paid Rs. 15,000 in advance
for the purchase of furniture by cheque No. 0895.

One numerical long question of 10 marks will be asked from this unit.















Office Practice and Accounting 10 237

UNIT
9 Bank Cash Book






















Learning objectives :


After the completion of this unit, students will be able
to understand :
• meaning of bank cash book.
• objectives of bank cash book.
• importance and advantages of bank cash book.
• specimen of bank cash book.
• considerations while preparing bank cash book.

• preparation of bank cash book.
• posting form of the journal voucher for advance
transactions.
• posting from of miscellaneous journal voucher.
• closing of bank cash book.






















238 Office Practice and Accounting 10

9 Bank Cash Book













Introduction
According to new accounting system, every government office should deposit all
revenues into bank and payments should be made through cheque except petty
cash expenses. In order to have proper control and minimize the misappropriation
and embezzlement of cash, such provision is brought into practice. To keep the
transparent record of cash receipt and payment made through bank, a multicolumn
ledger account is prepared in operating level offices of government which is known
as bank cash book. It contains five different accounts and seventeen columns to record
various transactions so it is also called multicolumn ledger. Bank cash book serves as
a general ledger that records almost all transactions which are prepared on the basis
of their corresponding journal voucher. It is maintained under AGF No. 5.

This ledger was known and used as Maal Cash Ledger when there was no banking
facility. But as banking facilities became available, government offices began to
perform their transactions through bank, and Maal Cash Book was converted bank
cash book.
Bank Cash Book is based on double entry book keeping principle. Therefore, every
account maintained under this book has debit and credit side with same amount.
Generally at the end of every month, trial balance is prepared to check the arithmetical
accuracy of the books of accounts after the preparation of bank cash book.
A complete records of cash receipt and payment, bank deposit, withdrawal and
balance, advance given and cleared, budget expenditures , and budget release and
imprest fund is maintained in bank cash book. Thus five account maintained in bank
cash book is as under
i. Cash Account ii. Bank Account

iii. Budget Expenditure Account iv. Advance Account
v. Miscellaneous Account

i. Cash Account: Every receipt and payment of cash is recorded in this column.
All receipts of cash are debited and payment of cash are credited. At the end of
month total receipt and payment of cash is ascertained.
ii. Bank Account: It has four columns, namely debit, credit, cheque no. and
balance. All deposit amounts are debited and withdrawal amount are credited
with respective cheque no, if any. Balance column denotes the amount available

Office Practice and Accounting 10 239

in bank. Debit amount increases balance and credit amount decreases. If balance
is shown in negative it is overdraft.
iii. Budget Expenditure Account: All the budget expenditures are recorded in this
column with their budget head number. It gives the total amount of budget
expenditure during the month.
iv. Advance Account: Advance account has two columns i.e. advance given and
cleared. Amount given in advance is recorded in former column and cleared
amount is recorded in later column.
v. Miscellaneous Account: This account has three columns, i.e. account no, debit
and credit. Transactions related to miscellaneous transactions are recorded with
the code number in account number column. In other words transactions except
cash, bank, budget expenditure and advance are recorded in this column.



AGF NO. 5
Government of Nepal
........................ Office/Department/Ministry
Bank Cash Book

Cash Bank Budget
Code Advance Miscellaneous
Date Particulars Balance Balance Expenditure Remarks
No. (Rs.) (Rs.)
(Rs.) (Rs.) (Rs.)
Dr. Cr. Dr. Cr. Ch bal BH Amount Given Clear A/C Dr. Cr.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17




















Explanation of the columns

The following informations are recorded into the seventeen columns of bank cash
book
1. Date: The date of financial transaction is recorded.
2. Code No. or Reference No.: The code number or voucher number is recorded.
3. Particulars: A short description of the transactions is written.



240 Office Practice and Accounting 10

Cash Account
4. Debit: Amount of cash received is recorded.
5. Credit: Amount of cash payment is recorded.


Bank Account
6. Debit: Amount of cash deposited into bank is recorded.
7. Credit: Amount of cash withdrawal is recorded.
8. Cheque No.: Number of cheque, issued for payment is recorded.
9. Balance: Currently available bank balance after every deposit and withdrawal
is recorded.

Budget Expenditure Account
10. Budget head no.: Budget expenditure head no. is recorded. (For example, 21111
is recorded for Salary)
11. Budget expenditure amount: Amount of budget expenditure is recorded.
Amount of advance given is also recorded here and when advance is cleared,
clearance amount is recorded in brackets.

Advance Account

12. Advance given: The amount of advance given is recorded.
13. Advance cleared: The amount of advance cleared is recorded.

Miscellaneous Account
14. Account number (A/c no.): The number of miscellaneous transactions is
recorded, if any.
15. Debit : Debit amount of miscellaneous account is recorded.
16. Credit : Credit amount of miscellaneous account is recorded.
17. Remarks: Additional information of transactions, if any, is recorded, otherwise
signature is done.

Objectives and importance
Bank cash book is maintained in operating level office of government for the following
objectives and importance:
1. It minimizes the cost and saves time as five ledgers are combined in a statement.
2. It helps to get clear information about cash balance, bank balance, budget
expenditure and advance given and cleared and expenditure in miscellaneous
heading.
3. It facilitates to prepare trial balance to check the arithmetic accuracy of financial
transaction of government office.


Office Practice and Accounting 10 241

4. It helps to have control over cash of transactions of offices.
5. It facilitates to plan the cash requirements and disbursements.
6. It helps to show the position of revenue and expenditure.
7. It facilitates to prepare trial balance to check the arithmetic accuracy of financial
transaction of government office.
8. It facilitates to formulate budget providing information to central level.

Consideration while preparing bank cash book.
The following points are to be considered while preparing bank cash book:

1. Goshwara voucher for every transaction should be prepared.
2. If difference between debit and credit totals occurs in trial balance, this must be
equal to the amount of unclear advance otherwise there is error.
3. Inter head transfer of budget is not recorded in bank cash book.
4. Debit amount should be posted in the debit column and credit amount in the
credit column from journal voucher.
5. Cash receipt and payment is recorded in cash account, bank deposit and
withdrawal is recorded in bank account, all expenses relating to budget
expenditure is recorded in budget expenditure column. Similarly, advance paid
and cleared is recorded in advance account. Except these, if any information is
available recorded in miscellaneous account.
6. Petty cash fund is recorded in bank cash book at the time of reimbursement.
7. Advance transaction is recorded in three columns instead of two. While giving
advance, it is recorded in credit side of bank column, budget expenditure
column and advance given column and while clearing, it is recorded once in
advance cleared column and twice in budget expenditure column. Advance
given amount is recorded in bracket while advance cleared amount is recorded
without bracket in budget expenditure column.

Posting transactions in bank cash book
Transactions in Bank Cash Book is posted from journal voucher. Financial transactions
firstly recorded in Journal Voucher and related transactions are posted into Bank Cash
Book as following ways:
1. Posting of General Journal Voucher: General Journal Voucher is also known as
budget expenditure journal voucher. While recording general journal voucher
amount of debit is recorded in budget expenditure head with related budget
head number and amount of credit is recorded in credit side of bank account.

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.



242 Office Practice and Accounting 10

Required: Journal voucher 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 purchased 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









The above journal voucher is recorded in bank cash book as under:

Government of Nepal
District Forest Office Bhaktapur
AGF No. 5
Bank Cash Book

Cash Bank Budget
Date Code Particulars Balance Balance Expenditure Advance Miscellaneous Remarks
No. (Rs.) (Rs.)
(Rs.) (Rs.) (Rs.)
Dr. Cr. Dr. Cr. Ch bal BH Amount Given Clear A/C Dr. Cr.
072-08-28 Machinery 70,000 01 29511 70,000
purchased






Office Practice and Accounting 10 243

Note: The amount Rs.70, 000 should be deducted from available bank balance to
know the current bank balance.
2. Posting of advance transactions : The voucher which is prepared to record
the advance transactions is called journal voucher for advance transactions.
Advance transaction is recorded in three columns instead of two. Advance
transactions in Bank Cash Book is recorded as follows:
(a) When advance is given: While giving advance, it is recorded in credit side of
bank column, budget expenditure column and advance given column.
For Example:
The following transaction is given:
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.

AGF NO. 10
Government of Nepal
..........Office /Department/Ministry

J.V. No. 1
Date: 2072/08/28
Journal Voucher
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Section Officer Mrs. Uma 22612
Pokhrel Traveling expenses 12,000
advance
12,000
Cr Nepal Rastra Bank
(Being travel expenses advance
given to section officer Mrs. Uma
Pokhrel.)
Total 12,000 12,000
Receipt No. ........................ Cheque No. 00066
Amount Received ............... Cheque amount: Twelve thousand only
Submitted by ..................... Approved by ...........................
Designation: Accountant Designation: Officer
Date: 2072/09/09 Date: 2072/09/09










244 Office Practice and Accounting 10