Office Practice and Accounting 10

Government of Nepal
..........Office /Department/Ministry
AGF No. 5
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.
072- Travelling 12,000 0066 22612 12,000 12,000
09-09 expenses
advance
given to
Section
Officer
Mrs. Uma
Pokhrel


Note: The amount Rs. 12,000 should be deducted from available bank balance to
know the current bank balance.

When advance is cleared: The clearance of advance also affects three accounts. The
following are different situations of clearing advance :

(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)

a If whole amount of advance is returned.(E=0)
For Example:
Poush-15; 2072: Section officer Uma Pokhrel submitted bank voucher of whole amount
of advance Rs. 12000 as tour to Illam has been canceled.
Government of Nepal
..........Office /Department/Ministry
J.V. No. 1 Date: 2072/08/28

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr NR Bank 22612
Cr Section officer Uma Pokhrel Travelling 12,000
expenses advance cleared
12,000
(Being Travel expenses advance of Uma
Pokhrel cleared as she deposited cash due
to the cancellation of tour.)
Total 12,000 12,000


Office Practice and Accounting 10 245

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


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

Cash Bank Budget
Code Advance Miscellaneous
Date No. Particulars Balance Balance Expenditure (Rs.) (Rs.) Remarks
(Rs.) (Rs.) (Rs.)
Dr. Cr. Dr. Cr. Ch bal BH Amount Given Clear A/C Dr. Cr.
072- Travelling
09-15 expenses
advance
of Uma 12,000 00066 22612 (12,000) 12,000
Pokhrel
cleared
as tour is
cancelled
and after
returning
advance
amount


b. If whole amount of advance is spent. (E=A)
For Example:

Poush-15; 2072 : Section Officer Uma Pokhrel submitted bill of expenditure of Rs
12000 after returning from her official tour to Illam and got clearance against her
advance for the same.

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


J.V. No. 1 Date: 2072/08/28

Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)

Dr BE Travelling expenses 22612
Cr Section office Uma Pokhrel travelling 12,000
expenses Advance Cleared
(Being travel expenses advance of Uma 12,000
Pokhrel cleared as per bill submitted.)




246 Office Practice and Accounting 10

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



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


Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
Dr. Cr. Dr. Cr. Ch bal BH No. Amount Given Cleared A/C Dr. Cr.
Rs. Rs. Rs. No. Rs. Rs.
072-09-15 Travelling
expenses
advance of 00066 22612 12,000 12,000
Uma Pokhrel
cleared as per (12,000)
bill submitted.
c. If expenditure is more than advance given. (E>A)

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.


Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: 2072/08/28
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr BE Travelling expenses 22612 15,000
Cr Section officer Uma Pokhrel travelling 12,000
expenses Advance Cleared
3,000
Cr NR Bank
(Being travel expenses advance of Uma
Pokhrel cleared as per bill issung a cheque
for extra amount.)


Total 15,000 15,000



Office Practice and Accounting 10 247

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


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


Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure (Rs.) (Rs.)
Date Code Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
Dr. Cr. Dr. Cr. Ch bal BH No. Amount Given Cleared A/C Dr. Cr.
Rs.
Rs.
Rs.
Rs.
Rs.
No.
072-09-15 Travelling 3000 22612 15,000 12,000
expenses
advance of (12,000)
Uma Pokhrel
cleared as per
bill submitted.
d. If expenditure is less than advance given. (E<A)
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.

Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)

Dr BE Travel expenses 22612 10000
Dr Cash
Cr Section Officer Uma Pokhrel Travelling 2000
expenses Advance Cleared 12,000
(Being Travelling expenses advance of Uma
Pokhrel cleared as per bill and cash returned.)
Receipt No. : ........... Cheque No. : ...........
Received amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




248 Office Practice and Accounting 10

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

Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure (Rs.) (Rs.)
Date Code Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
Dr. Cr. Dr. Cr. Ch bal BH No. Amount Given Cleared A/C Dr. Cr.
No.
Rs.
Rs.
Rs.
Rs.
Rs.
072-09-15 Travelling 2000 22612 10,000 12,000
expenses
advance of (12000)
Uma Pokhrel
cleared as per
bill submitted.
3. Posting of miscellaneous transactions
Transactions which are not recorded in Cash Account, Bank Account, Advance
Account and Budget Expenditure Account in the Bank Cash Book should be
mentioned in miscellaneous account column. These include transactions related to
revolving fund release, budget release, additional budget release, petty cash book,
salary distribution, employee's provident fund, citizen investment fund, income tax,
personnel loan, security deposit and contract tax, loan, yearly closing of petty cash
fund, closing of un-cleared advance and closing of budget.

Example for revolving fund

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.


Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank 22612 5,00,000
Cr. Initial revolving fund
(Being initial revolving fund received) 5,00,000
Receipt No. : ........... Cheque No. : ...........
Received amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........




Office Practice and Accounting 10 249

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

Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure
Code (Rs.) (Rs.)
Date No. Particulars (Rs.) (Rs.) (Rs.) Remarks
Dr. Cr. Dr. Cr. Ch bal BH No. Amount Given Cleared A/C Dr. Cr. Rs.
Rs.
No.
Rs.
Rs.
Rs.
072-04-05 Initial 500000 500000
revolving fund
received
Example for budget release
2071 Falgun 5: Received a budget release order and bank order for the actual
expenditure of Rs. 5,00,000 of the previous month.


AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. 1 Date: ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr Nepal Rastra Bank 500000
Cr Budget Release
(Being budget order and bank order 500000
received .)

Total 500000 500000
Receipt No. : ........... Cheque No. : ...........
Received amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........














250 Office Practice and Accounting 10

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


Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal BH No. Cr. Rs.
Rs. Rs. Rs. No. Rs.
072-11-05 Budget order 500000 500000
and bank order
received


Example for Petty Cash Fund
I. Created petty cash fund of Rs 1000 under the responsibility of Mr Akaash.
II. The following expenses are reimbursed through cheque no. 0098 as petty
cashier submitted the statement:
Taxi Rs. 100 Wages Rs. 50
Stationery Rs. 70 Telephone charges Rs. 40
Refreshment Rs. 80


Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr Petty Cash Fund 1000
Cr Nepal Rastra Bank
(Being petty cash fund created) 1000



Total 1000 1000



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



Office Practice and Accounting 10 251

Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr BE Travel Expenses 22212 100
Dr BE Salary 21111 50
Dr BE Magazine and Books 22311
Dr BE Communication Charge 22112 70
Dr BE Miscellaneous Expenses 22711 40
Cr Nepal Rastra Bank 80
(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 : ...........



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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Date Particulars Remarks
No.
Amount Given Cleared A/C Dr. Cr.
Dr. Cr. Dr. Cr. Ch bal BH No.
Rs. Rs. Rs. No. Rs. Rs.
I Petty cash fund 1000 1000
established

II Petty cash fund
reimbursed 340
22212 100
21111 50
22311 70
22112 40
22711 80
Example for salary and deductions
Cheque issued for Rs. 6,00,000 as salary for the month of Asoj 2072, after 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 .



252 Office Practice and Accounting 10

Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
I. Dr B.E. Salary 21111 7,00,000
Cr Provident Fund 60,000
Cr. Provident Fund Loan 20,000
Cr. Income Tax
Cr Personal Loan 5,000
Cr Citizen Investment Fund 10,000
Cr. N.R. Bank 5,000
(Being distribution of salary after 6,00,000
deduction of various items)
Total 70,000 70,000
II. Dr Provident Fund 60,000
Dr Provident Fund Loan 20,000
Dr Income Tax 5,000
Dr Personal Loan 10,000
Dr Citizen Investment Fund 5,000
Cr N.R. Bank
(Being various deductions deposited 1,00,000
into concerned offices)
Total 1,00,000 1,00,000


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


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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
I Salary for Asoj 600000 (600000) 21111 700000 60,000
distributed 20,000
after necessary 5,000
II deductions 10,000
5,000
various 60,000
deductions 20,000
deposited into 5,000
concerned 100000 (700000) 10,000
accounts.
5,000
Office Practice and Accounting 10 253

Example
Following transactions are given:

Bhadra 1 : Balance at bank Rs. 65,000
Bhadra 5 : Received budget release and bank order for the actual expenditure of
last month Rs. 1,50,000.
Bhadra 10 : Issued cheque of Rs. 25,000 as rent to house owner.

Bhadra 16 : Issued cheque of Rs. 10,000 for the payment of travelling expenses.
Bhadra 25 : Paid salary Rs. 70,000 for the month after deducting provident fund of
Rs. 13,000.
Required : Post into bank cash book.

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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
5 –1 Balance b/d 85,000
5–5 Budget released 1,50,000 2,35,000 1,50,000
5–10 Rent paid 25,000 2,10,000 22121 25000
5–16 Paid for 10,000 2,00,000 22612 10,000
Travelling
expenses
5–25 Paid Salary 57,000 1,43,000 21111 70,000 13,000
Total 1,50,000 92,000 1,43,000 105,000 1,63,000



Trial Balance
Trial balance is the list of debit and credit balances, taken out from bank cash book, to
check the arithmetical accuracy after certain interval of time. The financial transactions
of government office are posted in journal voucher and into bank cash book to prepare
a trial balance. Trial balance is prepared to test the accuracy of financial transaction.
Total of debit and credit side of trial balance must be equal 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. Thus advance account is not included in
trial balance.

For Example:

The above illustration is taken as base for trial balance



254 Office Practice and Accounting 10

Government of Nepal
..........Office /Department/Ministry
As on

Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
1. Cash Account – –
2. Bank Account 150000 92000
3. Budget Expenditure 105000 –
4. Miscellaneous Account – 163000

Total 255000 255000











Closing of Bank Cash Book


Monthly closing
All operating level offices of Government of Nepal receive budget from central level
offices. Operating level offices are responsible for proper utilization of budget provided
to them. At the end of each month operating level offices submit a statement of bank
cash book to the central level offices. This statement is used to provide information
relating to the revenues, expenditures and balance of cash and bank at the end of each
month. From the monthly closing of cash book trial balance can be prepared. It helps
to check the arithmetical accuracy of books of accounts. If there is any amount of
advance given but not cleared, then the trial balance will not be equal and balancing
figure is considered as un-cleared advance.


Yearly or annual closing
Bank cash book should be closed at the end of each fiscal year. The procedure of
annual closing is the same as in monthly closing. In the yearly closing, first close the
petty cash fund, imprest fund and budget release. All the columns of bank cash book
are added to find the total of each account.


While closing Petty Cash Fund
On 31 Ashadh 2071, District Education Office, Bhaktapur closed its petty cash fund of
Rs 1000 by depositing into bank.



Office Practice and Accounting 10 255

GGovernment of Nepal
..........Office /Department/Ministry
As on ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr Nepal Rastra Bank 1000
Cr Petty Cash Fund 1000
(Being petty cash fund is closed by
depositing amount into bank)
Total 1000 1000


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




Government of Nepal

..........Office /Department/Ministry
AGF No. 5
Bank Cash Book

Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure (Rs.) (Rs.)
Date Code Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
Dr. Cr. Dr. Cr. Ch bal BH Amount Given Cleared A/C Dr. Cr. Rs.
Rs.
No.
Rs.
Rs.
No.
Rs.
071- Petty cash 1000 1000 1000
03-31 fund is closed
by depositing
amount into
bank
Closing of un-cleared advance

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.





256 Office Practice and Accounting 10

Government of Nepal AGF NO. 10
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr BE Travel Expenses 22612 2000
Cr Section Officer Amar Sharma
Travelling Expenses Advance Cleared 2000
artificially
(Being Travel Expenses advance of
Amar Sharma Cleared artificially)
Total 2000 2000



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


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


Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
(Rs.)
(Rs.)
Date Code Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
i Travelling 2000 2000
Expenses (2000)
advance of Amar
Sharma Cleared
artificially
Annual closing of budget

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.






Office Practice and Accounting 10 257

AGF NO. 10
GGovernment of Nepal
..........Office /Department/Ministry
J.V. No. 1 Date: ...............

Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr Total Budget release 18,00,000
Cr Total Budget expenditure
Cr NR Bank (Budget Freeze A/c) 16,00,000
(Being release and budget expenditure 2,00,000
is closed.)

Total

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




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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C
Dr. Cr. Dr. Cr. Ch bal Dr. Rs. Cr. Rs.
No. Rs. Rs. Rs. No.
i Release 2,00,000 18,00,000 16,00,000
and budget
expenditure
is closed by
depositing
surplus budget
in freeze
account.
Illustrations
1. Following are the transactions in the books of District Irrigation Office,
Kavre for the month of Shrawan 2070.
i. 2070/04/03 received revolving fund equal to 1/6th of actual expenditure of last
year Rs. 24,00,000.
ii. 2070/4/08 cheque no.4448 issued and petty cash fund of Rs 1500 established
under the responsibility of Sharma.



258 Office Practice and Accounting 10

iii. 2070/04/20 through cheque No. 4447 Rs. 7500 was paid in advance to accountant
Panday for purchase of revolving chair.
iv. 2070/04/27, Rs. 55,000 was paid to Yamaha House for the purchase of motorcycle
through cheque no. 4446.
v. 2070/4/30 salary distributed through cheque no 4449 Rs. 50,000 after deducting
provident fund of Rs. 5,000.
Required: (a) Journal Vouchers (b) Bank Cash Book

Government of Nepal
..........Office /Department/Ministry

B.H. Debit Credit
Code No. Particulars L.F.
No. (Rs.) (Rs.)
2070/04/03 Dr. Nepal Rastra Bank 4,00,000
Cr. Revolving fund 4,00,000
(Being revolving fund received equal
to 1/6th of total expenditure of last
year)
2070/04/08 Dr. Petty cash fund 1500
Cr. Nepal Rastra Bank 1500
(Being petty cash fund established
under the responsibility of Sharma)

2070/04/20 Dr. Accountant Panday Furniture & 29311 7500
fixture Advance 7500
Cr. Nepal Rastra Bank
(Being advance given to Panday for
purchase of chair)
2070/04/27 Dr. BE Vehicle 29411 55000
Cr. Nepal Rastra Bank 55000
(Being motor cycle purchased)


2070/04/30 Dr. B.E. Salary 21111 50,000
Cr. Provident fund 5,000
Cr. Nepal Rastra Bank 45,000
(Being salary paid after deducting
provident fund.)

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





Office Practice and Accounting 10 259

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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Date Particulars Remarks
No.
BH Amount Given Cleared A/C
Dr. Cr. Dr. Cr. Ch bal Dr. Rs. Cr. Rs.
No. Rs. Rs. Rs. No.
2070/04/03 Revolving fund 400000 400000 400000
received equal
to 1/6th of total
expenditure of
last month
2070/04/08 Petty cash fund 1500 398500 1500
Established
2070/04/20 Furniture 7500 391000 29311 7500
advance given to
Panday
2070/04/27 Motor cycle 55000 336000 29411 55000
purchased
2070/04/30 Salary paid
after deducting 45000 291000 21111 50000 5000
provident fund
Total 400000 109000 291000 105000 7500 1500 405000
2. Following transaction is related to District Forest Office Bhaktapur.

Asoj 1 : Balance at bank Rs. 50,000
Asoj 5 : Received a bank order of Rs. 80,000 and budget order of Rs. 60,000
Asoj 9 : A cheque of Rs. 8000 issued as advance to field officer Sangita for her
official tour to Jhapa.
Asoj 15 : A cheque of Rs. 5,000 issued to XYZ furniture for the payment of sofa set.
Asoj 28 : Issued a cheque of Rs. 81,000 to distribute the salary for the month after
deducting provident fund of Rs. 9,000.


Government of Nepal
..........Office /Department/Ministry

B.H. Debit Credit
Code No. Particulars L.F.
No. (Rs.) (Rs.)
Asoj 5 Dr Nepal Rastra Bank 80,000
Cr Budget Release 60,000
Cr Revolving Fund 20,000
(Being budget release order received.)










260 Office Practice and Accounting 10

Asoj 9 Dr Field Officer Sangita Travelling 22612 8000 8000
Advance
Cr Nepal Rastra Bank
(Being Traveling advance given to
sangita.)
Asoj 15 Dr BE Furniture & Fixture 29311 5000
Cr Nepal Rastra Bank 5000
(Being payment made to sofaset)


Asoj 28 Dr BE Salary 21111 90000
Cr Provident fund 9000
Cr Nepal Rastra Bank 81000
(Being Salary paid for the month
after deducting provident fund)

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


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

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
Asoj – 1 Balance b/d 50,000 –
Asoj – 5 Budget Released 80,000 1,30,000 60,000
20,000
Asoj – 9 Travelingexpenses 8,000 1,22,000 22612 8,000 8,000
advance to
Sangita
Asoj – 15 Furniture Bought 5,000 1,17,000 29311 5,000
Asoj – 28 Salary Distributed 81,000 36,000 21111 90,000 9,000
Total 80,000 94,000 36,000 1,03,000 8,000 89,000


3. From the following transactions, prepare bank cash book:
Chaitra 2 : Received bank order letter of Rs. 5,00,000 for initial revolving fund.
Chaitra 10 : Cheque issued of Rs. 4,200 to Mr. Shah as advance for traveling expenses.
Chaitra 12 : Received bank order letter of Rs. 2,50,000 additional revolving fund.
Chaitra 21 : Issued a Letter of Credit of Rs. 2,25,000 in the name of Japan Trading
Corporation for import of machinery and paid by cheque Rs. 1,250 for
bank charge and commission.


Office Practice and Accounting 10 261

Chaitra 22 : Record of income and expenditure for a projector valued at Rs. 27,000
received from the ministry was made as per instruction.
Chaitra 24 : Rs. 25,000 last year's advance for machinery purchase of section officer
Mr. Binesh Chaudhary has been cleared by issuing cheque for an
amount of Rs. 1,250.
Chaitra 25 : Cheque issued of Rs. 1,08,000 for first running bill of building contractor
after deducting 10% contract tax.
Chaitra 29 : Rs 500 was wrongly debited to traveling expenses instead of allowance
has to be rectified.
Required: Bank cash book without voucher



Government of Nepal
..........Office /Department/Ministry
AGF No. 5
Bank Cash Book
for the month of Marga

Cash Bank Budget
Balance Balance Expenditure Advance Miscellaneous
Code (Rs.) (Rs.)
Date Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
12/2 Receive bank 5,00,000 5,00,000 5,00,000
order letter for
revolving fund
12/10 Advance given to 4,200 4,95,800 4,200 4,200
Shah as traveling
expenses
12/12 Received 2,50,000 7,45,800 8,000 8,000 2,50,000
additional
revolving fund
12/21 Advance given for 226250 5,19,550 226,250 225000
machinery
12/22 Record of income 27,000 4,92,550 27,000
& exp. for
projector
12/24 Last years 1,250 4,91,300 1,250 25,000
advance cleared
by Binesh
12/25 Payment of 1st 108000 3,83,300 120,000 12,000
running bill
of building
construction
12/29 Rectification of 500
wrong entry (500)
Total 7,50,000 366700 3,83,300 378,700 229200 25,000 7,62,000













262 Office Practice and Accounting 10

4. The following transactions are given to you:
Poush 1 : Balance at bank Rs. 20,000 (Cr) and cash balance Rs. 6,000.
Pous 4 : Received a bank order letter of Rs. 1,70,000 for budget release.
Poush 7 : A cheque of Rs. 4000 issued to accountant Pradhan for purchase of office
furniture in advance.
Poush 20 : Accountant Ramesh Karki submitted a bill of Rs. 5,000, issuing cheque for
additional amount his advance is cleared.
Poush 28 : Out of total salary of Rs. 60,000 provident fund Rs. 6,000 and income tax
Rs. 4,000 deducted and distributed to the staff.
Required : Bank cash book


Government of Nepal
..........Office /Department/Ministry
AGF No. 5
Bank Cash Book
For the month of Poush

Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure (Rs.) (Rs.)
Date Code Particulars (Rs.) (Rs.) (Rs.) Remarks
No.
BH Amount Given Cleared A/C Dr.
Dr. Cr. Dr. Cr. Ch bal Cr. Rs.
No. Rs. Rs. Rs. No. Rs.
Poush 1 Balance b/d 6,000 (20,000)
Poush 4 Budget release 1,70,000 1,50,000 1,70,000
received
Poush 7 Furniture advance 4,000 1,46,000 29311 4,000 4,000
paid to Pradhan
Poush 20 Advance of 1,000 1,45,000 29311 5,000 4,000
Pradhan cleared (4,000)
issuing cheque for
extra amount
Poush 28 Salary Distributed 50,000 95,000 21111 60,000 4,000
6,000
Total 6,000 1,70,000 55,000 95,000 64,000 4,000 4,000 1,80,000
5. From the following information, prepare a Bank Cash Book.

a. The balance as shown by the bank cashbook till Jesth 2070 were, Bank Dr Rs.
2,50,000,and Cr. Rs. 190,500
b. Issued a cheque of Rs. 1000 to Amrit for salary advance through cheque no.
0679.
c. Purchased office printer worth Rs. 4000 & paid by cheque no. 03566.
d. The salary of Rs. 30,500 for the month of Jestha paid by cheque no. 046798 with
the following deductions:
Provident fund deductions Rs. 3,600
Income tax Rs. 150
Salary advance of Amrit Rs. 1,000

Office Practice and Accounting 10 263

Government of Nepal
..........Office /Department/Ministry
AGF No. 5
Bank Cash Book
For the month of Jestha

Cash Bank Budget Advance Miscellaneous
Balance Balance Expenditure
Code (Rs.) (Rs.)
Date No. Particulars (Rs.) (Rs.) (Rs.) Remarks
Dr. Cr. Dr. Cr. Ch bal BH Amount Given Cleared A/C Dr. Cr.
Rs.
Rs.
Rs.
Rs.
No.
Rs.
No.
a. Balance b/d 2,50,000 1,90,500 59,500
b. Salary advance to 1,000 0679 58,500 21111 1,000 1,000
Amrit
c. Printer machiner 4,000 03566 54,500 29511 4,000
purchased
d. Salary distributed 25,750 046798 28,750 21111 30,500 1,000 3,750
after deductions (1,000)
Total 2,50,000 221,250 28,750 34,500 1,000 1,000 3,750
EXERCISE


Answer the following questions in one sentence.

1. Write the AGF No. of bank cash book.
2. Write the name of any four ledger accounts included in the bank cash book.
3. In which condition bracket is used in the bank cash book?

Give short answer to the following questions.
1. Explain in brief about five ledger accounts of the bank cash book.
2. Why is bank cash book prepared? Mention its objectives.
3. Mention the points to be considered to be taken while preparing bank cash
book.
4. Explain how advance given and advance cleared transactions are shown in the
bank cash book in different situation?


















264 Office Practice and Accounting 10

Practical Problems

1. 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 : a) Journal voucher b) Bank cash book
Ans : Bank Rs. (17,500)
2. The following transactions are given:
Chaitra 1 : Balance at bank Rs. 60,000
Chaitra 2 : Received budget release and bank order for the actual expenditure of
last month Rs. 1,00,000.
Chaitra 6 : Issued a cheque of Rs. 15,000 as traveling expenses in advance to Mr. A
Acharya.
Chaitra 8 : Issued a cheque of Rs. 20,000 to purchase office materials.
Chaitra 15 : Mr. Acharya's advance cleared on the basis of documents submitted by
him.
Required : Bank cash book.
Ans : Bank Rs. 1,25,000
3. You are given the following transactions:
Magh 1 : Received a bank order for budget release of Rs 300000
Magh 3 : Issued a cheque to pay hospitality expenses Rs 6000
Magh 10 : Mr. Thapa submitted the furniture purchase bill for Rs. 25,000 against
the advance of Rs. 20,000 for the same.
Magh 20 : Issued a cheque of Rs. 5,000 for purchase of office supplies
Magh 28 : Issued a cheque of Rs. 18,000 for distribution of salary for the month of
Magh after deducting Rs. 4,000 for provident fund
Required : a) Journal voucher b) Bank cash book
Ans : Bank Rs. 2,66,000
4. From the following transactions of District Forest Office, Sunsari,
prepare journal voucher (AGF No. 10) and Bank Cash Book (AGF No.
10) for the month of Shrawan.

Shrawan2 : Received Rs. 1,80,000 as initial fund equal to 1/6th of expenditure of last
year.


Office Practice and Accounting 10 265

Shrawan5 : A cheque of Rs. 4,000 issued in advance to field officer Pawan for his
tour.
Shrawan15 : Field officer Pawan submitted a bill of expenditure and bank voucher of
Rs. 500 and his advance is cleared.
Shrawan 29 : A cheque of Rs. 30,000 issued after provident fund deduction Rs. 2,500
to distribute salary.
Shrawan 30 : Deducted amount deposited to concerned office.
Ans : Bank Rs. 1,44,000
5. Following are the transactions which took place in a government office.
Mangsir 1 : Received bank order for Rs. 9,00,000 and budget release order letter of
Rs. 7,00,000 .
Mangsir 2 : Issued a cheque of Rs. 3000 for the establishment of petty cash fund
under the responsibility of Mrs. Kalpana
Mangsir8 : Rs. 14,000 is transferred from budget head rent to budget head food,
getting approval from authority
Mangsir 13 : Issued a cheque to house owner for the rent of Kartik and Mangsir @ Rs.
10,000 per month after deducting 15% rent tax at source.
Mangsir 15 : Issued a cheque of Rs. 20,000 as an advance to accountant Yadav
comprising Rs. 15,000 and Rs. 5,000 for the purchase of furniture and
office materials respectively.
Mangsir 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.
Mangsir 30 : Salary for the month Rs. 77,000 (including government contribution)
and allowance Rs 10,000 distributed after deducting provident fund
Rs 14000, tejarath loan Rs 7000 and income tax Rs 1500. The deducted
amount deposited into concerned account same day.
Required : a. Journal voucher b. Bank cash book
Ans : Bank Rs. 7,72,225
6. Following transactions are given:
Chaitra 1 : Bank overdraft Rs. 10,000
Chaitra 7 : Received budget release and bank order for the actual expenditure of
last month Rs. 1,40,000
Chaitra 15 : Office supplies advance of Ganesh Thapa cleared as per the bill submitted
by him Rs. 15,000
Chaitra 28 : Out of the total salaries of Rs. 1,10,000 and allowance Rs. 10,000 for the
month paid by issuing a cheque after deducting provident fund Rs.
5,000 and income tax Rs. 3,000


266 Office Practice and Accounting 10

Chaitra 29 : Amount of provident fund deduction and income tax deduction were
deposited into concerned offices
Required : Bank cash book
Ans : Bank Rs. 10,000
7. Following transactions are given:
Baisakh 1 : Balance at bank Rs. 50,000.
Baisakh 3 : Received budget release and bank order of Rs. 2,00,000.
Baisakh 5 : Purchased motor cycle and issued a cheque of Rs. 90,000.
Baisakh 30 : Issued a cheque of Rs. 87,000 for the distribution of salary after deducting
of Rs. 20,000 for provident fund, Rs. 2,400 for salary advance and Rs. 600
for income tax. The deductions were deposited into the concerned office
on the same day.
Baisakh 31 : A machinery is received from central office valued of Rs. 3,00,000 with
necessary documents. A release order is also received advertising to
adjust the expenditure as additional budget release.
Required : Bank cash book
Ans : Bank Rs. 50,000


8. 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 have 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.
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 : a. Journal vouchers. b. Bank cash book
Ans : Bank Rs. 2,06,500
9. Following transactions are given:

2066 Chaitra 1 : Balance at bank Rs. 50,000 (Cr).
2066 Chaitra 2 : Received bank order Rs. 1,50,000 and budget release order Rs.
2,00,000.
2066 Chaitra 5 : Purchase of office supplies for Rs. 40,000.
2066 Chaitra 16 : Cleared Mr. Ram's advance for purchase of furniture Rs. 50,000
against the bill submitted for the same.



Office Practice and Accounting 10 267

2066 Chaitra 25 : Paid salary Rs. 43,000 after deducting provident fund Rs. 10,000 and
income tax Rs. 2,000.
Required : Bank cash book.
Ans : Bank Rs. 17,000


10. Following transactions of government office are given below:
Chaitra 1 : Opening bank balance Rs. 10,000.
Chaitra 5 : Issued a cheque of Rs. 15,000 to Rajan Khanal as advance for traveling
expenses.
Chaitra 10 : Received a bank order letter of Rs. 1,50,000 as additional revolving fund
release.
Chaitra 26 : Paid house rent of Rs. 30,000 through cheque.
Chaitra 28 : Issued a cheque of Rs. 2.30,000 for the payment of salary of the month
after deducting provident fund of Rs. 30,000, income tax of Rs. 5,000 and
provident fund loan of Rs. 10,000.
Required : Bank cash book
Ans : Bank Rs. (1,15,000)
11. Following transactions are given:

Magh 1 : Balance at bank Rs. 80,000.
Magh 2 : Received bank order Rs. 3,20,000 and budget release order Rs. 4,00,000.
Magh 7 : Issued a cheque of Rs. 35,000 to purchase office supplies.
Magh 15 : Ram submitted furniture purchase bill of Rs. 60,000. His advance is
cleared by issuing a cheque of Rs. 10,000.
Magh 27 : Issued cheque for salary Rs. 72,000 and for allowance Rs. 10,000 after
deducting provident fund Rs. 16,000.
Required : Bank cash book.
Ans : Bank Rs. 2,73,000
12. Following information is given to you:
Chaitra 1 : Balance at bank Rs. 4,000.
Chaitra 5 : Received bank order for Rs. 60,000 and budget release order for Rs.
52,000.
Chaitra 12 : Issued a cheque of Rs. 25,000 for purchase of a computing machine.
Chaitra 15 : Issued cheque of Rs. 11,400 in favour of the contractor for road pavement
after deducting 5% for deposit.
Chaitra 28 : Issued a cheque of Rs. 24,000 for distribution of salary for the month
after deducting Rs. 6,000 for provident fund and Rs. 3,000 for provident
fund loan.
Required : Bank cash book.
Ans : Bank Rs. 3,600


268 Office Practice and Accounting 10

13. The following transactions are given for the month of Kartik:
Kartik 1 : Balance at bank Rs. 75,000.
Kartik 5 : Received budget release order and bank order of Rs. 1,00,000.
Kartik 7 : Paid by cheque Rs. 10,000 for purchase of office supplies.
Karitk 15 : Cleared Mr. Pandey's advance for purchase of vehicle Rs. 25,000 against
the bill submitted for the same.
Karitk 25 : Issued a cheque for the distribution of the salary Kartik Rs. 45,000 after
deducting staff provident fund as per rules including government of
contribution.
Required : Bank cash book.
Ans : Bank Rs. 1,20,000
14. Post the following transactions in the AGF No. 5 of District Irrigation
Office, Illam, for the month of Kartik.
Kartik 1 : Opening bank balance Rs. 1,15,000.
Kartik 3 : Rs. 3,25,000 is received as revolving fund through bank transfer.
Kartik 8 : Paid Rs. 85,000 as salary for the month of Asoj.
Kartik 17 : Petty cash fund of Rs. 1000 is established under responsibility of Kiran .
Kartik 22 : Cheque of Rs., 8,000 was issued for office material advance to store
keeper Dipak.
Kartik 25 : Purchased dress for Rs.3500 and medical expenses Rs. 4000 of staff paid
by cheque.
Kartik 27 : A cheque is issued to pay hospitality expenses of Rs. 1500.
Kartik 30 : House rent paid Rs. 7,500.
Ans : Bank Rs. 3,29,500
15. The following transactions are given:
Chaitra 1 : Received budget release & bank order for the actual expenditure of last
month Rs. 5,00,000.
Chaitra 8 : Paid for office stationery Rs. 2500
Chaitra 16 : Issued a cheque of Rs. 15,000 as fuel advance to Mr. Prajapati.
Chaitra1 8 : Issued a cheque of Rs. 20,000 to purchase office materials.
Chaitra 22 : Mr. Prajapati’s advance cleared on the basis of documents submitted by
him.
Chaitra 25 : Out of total salary to staff Rs. 2,50,000 for the month Rs. 25,000 was
deducted as provident fund and the balance was distributed.
Required : a. Journal voucher b. Bank cash book
Ans : Bank Rs. 2,37,500





Office Practice and Accounting 10 269

UNIT
10 Budget Sheet





























Learning objectives :


After the completion of this unit, students will be able
to understand :
• meaning of budget sheet.
• importance of budget sheet.
• parts of budget sheet.
• closing of budget sheet.
• specimen of budget sheet.

























270 Office Practice and Accounting 10

10 Budget Sheet













Budget sheet is a kind of ledger maintained under New Accounting System. It is
prepared by operating level offices and submitted to respective central level office at
the end of every month. Its main objective is to have control over misappropriation
and misuse of budget through complete record of annual apportionment, budget
release and expenditure under head and sub head. This is how budget sheet helps to
know the position of annual budget, budget release, budget expenditure and balance
of budget. It is general ledger which shows how much has been spent and how much
remains under each budget head at the end of the month.

Budget sheet is prepared with the help of journal voucher of each transaction. All the
financial transactions in operating level office are first recorded in journal voucher
and later posted into a budget sheet. It is maintained under the format designed by
Auditor General Form (AGF) No. 8.

Importance and objectives of budget sheet

Budget sheet has the following importance and objectives :
1. It helps to save time and cost in office.
2. It helps to have the control over the budget.
3. It helps to know the amount of annual appropriation of budget.
4. It helps to know the amount of budget release.
5. It helps to keep expenditure within the budgetary limit
6. It helps to prepare financial statement and reports.
7. It facilitates to formulate national budget providing information to central level.

Parts of budget sheet

The budget sheet (AGF No. 8) has three parts. They are as follows:
(i) Annual Appropriation Part,
(ii) Budget Release Part, and
(iii) Budget Expenditure Part.
1. Annual Appropriation Part: This part shows the amount of annual budget
approved for an office. This is the first part of budget sheet. Budgetary limit of
each budget head is shown in this section. This implies that amount that can be

Office Practice and Accounting 10 271

spent by an office in each head in a year is shown in this part.
For example: If Rs. 2,00,000 is allocated under salary head, the total amount of
annual budget that can be spent under salary is Rs. 200,000. So Rs. 2,00,000 is
recorded in this part under salary head. Receipts of supplementary budget, inter
office transfer and inter head budget transfer is also recorded in this section.
2. Budget Release Part : This part shows the amount of monthly budget release,
including initial and additional imprest fund release. Annual budget is not
released at a time. It is released as per the Monthly Expenditure Report (AGF
No.13) submitted by operating level office. When the budget release is received
out of the annual appropriation, it is recorded in the specified budget heads
and sub-heads columns. Budget transfer and supplementary budgets are also
recorded in this part.
For example: If Rs. 2,00,000 is allocated under salary head, and amount of
salary released upto a certain month is Rs. 20,000, the same amount is recorded
in this section. This part is balanced and closed at the end of every fiscal year
and surplus amount, if any, is transferred to budget freeze account. The surplus
amount of each budget head will be shown within the brackets in the concerned
column. Initial and additional revolving fund releases are shown in total
column. The amount of budget released and received is entered into respective
columns of budget sheet by preparing a journal voucher.
3. Budget Expenditure Part : This part shows the expenditure of budget in
their corresponding budget head. Every transaction of payment under each
budget head is recorded with the help of journal voucher. This part records
the expenditures incurred during the current month under specific budget
expenditure heads. The transactions which are not concerned with budget head
are not recorded in this section. Petty cash expenses are recorded in this part
at the time of reimbursement. Advance transactions, both advance given and
cleared are also recorded. Advance paid is recorded in the concerned column
and when it is cleared, amount of advance paid is shown in brackets and actual
expenditure is shown without brackets. At the end of every month, this part is
closed by adding all expenditures of respective budget heads and expenditures
till the previous month.


Closing of budget sheet
The budget sheet is closed monthly and it is submitted to central level office along
with other necessary documents to get the budget release for the next month. It is also
closed at the end of the fiscal year while closing the books of account.
Monthly Closing : The process of closing the budget sheet at the end of each month is
called monthly closing. It includes closing of expenditure as well as closing of budget
release by totaling of each column of budget sheet. To find out the expenditure
of current month, budget expenditures of each column are added. Then, the total
expenditure of current month is added to the expenditure up to the last month to find
out the amount of total expenditure up to the current month. Similarly, to find out the


272 Office Practice and Accounting 10

budget release up to the current month, the amount of budget release of each column
is totaled and added with the total of the budget release received till the last month.
Yearly or Annual Closing : The process of closing budget sheet at the end of the
fiscal year is called annual closing. For closing the budget sheet, the total amount
of budget release and total amount of budget expenditure during the fiscal year are
totaled. The surplus amount, if any, is calculated by deducting budget expenditure
from budget release. The budget sheet is closed on the basis of journal voucher. The
surplus amount is either transferred to next year or to the budget freeze account or
deposited into the consolidated fund.

Illustrations

1. Consider the following transactions of a government office for the
month of Shrawan, 2071:
4 Shrawan, 2071 : Received a bank order letter for initial imprest fund Rs.4,00,000.
6 Shrawan, 2071 : Issued cheque no. 7676 of Rs. 1000 for the payment of office
material.
9 Shrawan, 2071 : Establishment of petty cash fund Rs. 500.
12 Shrawan, 2071 : Paid for furniture Rs. 10,000 through cheque no. 6767.

15 Shrawan, 2071 : Fuel expenses paid by cheque no 6876 Rs. 5,000.
19 Shrawan, 2071 : Paid house rent Rs. 8500 after deducting house rent tax 15% at
source.
22 Shrawan, 2071 : Cheque no. 6798 of Rs. 12,000 is issued to pay for staff dress.

28 Shrawan 2071 : Salary for the month Rs. 70,000 distributed after 10 % provident
fund deduction.

Required : a. Journal voucher b. Budget sheet
AGF NO. 10
Government of Nepal

............ Office/Department/Ministry
J.V. No. 1 Date: ...............
B.H. Debit Credit
Code No. Particulars L.F.
No. (Rs.) (Rs.)
4 Shrawan, Dr. N. R. Bank 4,00,000
2071 Cr. Imprest fund release
(Being imprest fund release) 4,00,000
6 Shrawan, Dr. B.E. Office Material 22310 1000
2071 Cr. N. R. Bank 1000
(Being office material purchased)


Office Practice and Accounting 10 273

9 Dr. Petty cash fund 500
Shrawan, Cr. N. R. Bank 500
2071 (Being establishment of petty
cash fund)
12 Dr. B.E. Furniture 29311 10000
Shrawan, Cr. N. R. Bank 10000
2071 (Being purchase of furniture)
15 Dr. B. E. Fuel 22211 5000
Shrawan, Cr. N. R. Bank 5000
2071 (Being salary paid)
19 Dr. B.E. Rent 22121 10000
Shrawan, Cr. Rent Tax 1500
2071 Cr. N. R. Bank
(Being rent paid) 8500
22 Dr. B.E. Dress 21121 12000
Shrawan, Cr. N. R. Bank 12000
2071 (Being purchase
28 Dr. BE Salary 21111 70000
Shrawan Cr. Provident fund 7000
2071 Cr. NR Bank
(Being payment of salary after 63000
provident fund deduction)
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque Amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........


Government of Nepal
.............. Office / Department / Ministry
AGF No. 8
Budget Sheet
Office
Budget head and Sub-head Salary Dress Rent Fuel Furniture
Material
Budget Head no. 21111 21121 22122 22211 22310 29311
Appropriation for the year
Budget transfer
Date Ref. Particulars Total
No.
6 Purchase 1000 1000
Shrawan Office
2071 Material
12Shrawan, Purchase of 10,000 10,000
2071 furniture


274 Office Practice and Accounting 10

15 Shrawan, Paid for fuel 5,000 5,000
2071
19 Shrawan, Rent paid 10000 10000
2071
22 Shrawan, Dress 12000 12000
2071 Purchased
28 Shrawan Salary 70,000 70,000
2071 distribution
after
provident
fund
deduction
Total for the month of Shrawan 108000 70000 12000 10000 5000 1000 10000


2. Post the following transactions into budget sheet.


Expenses up to Expenses of Magh
Budget Head Annual Budget (Rs)
Poush (Rs) (Rs.)
Salary 1,00,000 32,000 8,200
Allowance 6,000 18,000 400
Traveling expenses 15,000 8,000 800
Dress 9,000 2,200 180
Machinery 16,000 4,800 1,400

Falgun 1 : A cheque of Rs. 60,000 received as budget release.

Falgun 5 : Traveling expenses advance to Mr. Ram paid Rs. 500.
Falgun 18 : Purchase machinery of Rs. 2,000.
Falgun 28 : Out of total salary of Rs. 30,000, provident fund of Rs. 3,000 and
income tax Rs. 1,000 deducted and distributed for the month.
Government of Nepal
.............. Office / Department / Ministry
Budget Sheet AGF No. 8
Traveling
Budget head and Sub-head Salary Allowance Dress Machinery
Expenses
Budget Head no. 21111 21113 22612 21121 22310
Annual appropriation 1,46,000 1,00,000 6,000 15,000 9,000 16,000
Budget transfer
Ref.
Date Particulars Total
No.
Budget release up to 65,000 32,000 18,000 8,000 2,200 4,800
Poush
Budget release for
11/1 60,000 8,200 400 800 180 1,400
the month Magh

Office Practice and Accounting 10 275

Traveling expenses
11/5 500 500
advance to Ram
11/18 Machinery 2,000 2,000
Purchased
11/28 Salary distributed 26,000 26,000
Total 28,500 26,000 500 2,000




3. Prepare budget sheet from the following transactions:
Asoj 1 : Received a bank order for budget release Rs. 25,000

Budget
Head No. Budget Head Annual Budget (Rs.)
21111 Salary 20,000
21113 Allowance 18,000
22122 Rent 2,700
29311 Furniture 2,000

29511 Machinery and equipment 5,000
Asoj 5 : Rent paid for the month Rs. 400
Asoj 15 : Machinery of Rs. 600 purchased.

Asoj 25 : Advance to Mr. Lama for furniture Rs. 500.

Government of Nepal
.............. Office / Department / Ministry
Budget Sheet Month of Asoj AGF No. 8

Budget head and Sub-head Salary Allowance Rent Furniture Machinery
Budget Head no. 21111 21113 22122 29311 29511
Annual appropriation 37,700 20,000 8,000 2,700 2,000 5,000

Budget transfer
Ref.
Date Particulars Total
No.
Asoj Budget release 25,000
1 received
Asoj
5 Rent paid 400 400
Asoj Machinery 600 600
15 Purchased
Asoj Mr. Lama furniture
25 Advance 500 500
Total 1,500 400 500 600



276 Office Practice and Accounting 10

4. The following transactions are related to District Education Office,
Illam.

Annual Expenditure of
B. H. No. Budget Heads and Subhead
Appropriation Mangsir
21111 Salary 4,50,000 90,000
22612 Traveling expenses 20,000 1800
22112 Communication charges 8,000 1,500
22311 Office expenses 70,000 14,000
29311 Furniture & Fixture 80,000 1,400
29411 Vehicle 1,00,000 40,000
29511 Machinery and equipment 1,50,000 23,000
Total 8,78,000 184300


Transactions for the month of Poush

Poush 3 : Received a bank order and budget release order for the actual expenditure
of last month Rs. 1,84,300.
Poush 5 : Issued a cheque of Rs. 12500 to Field Officer Ms Sanju Baral as advance
for traveling expenses.
Poush 7 : Paid for office material purchase Rs. 5,400.
Poush 11 : Paid to telephone charge Rs. 1, 500.

Poush 18 : Ms Sanju Baral submitted a bill of traveling expenses equal to advance
paid and advance was cleared.

Poush 28 : Issued cheque of Rs. 100,000 for distribution of salary after deduction of
Rs.10,000 for provident fund., Rs. 7,000 for provident fund loan and Rs.
2,500 for income tax.
Poush 29 : Above deductions were deposited into concerned offices.

Prepare : (a) Journal voucher, (ii) Budget sheet.


AGF NO. 10
Journal Voucher
B.H. Debit Credit
Code No. Particulars L.F.
No. (Rs.) (Rs.)
Poush 3 Dr. N. R. Bank 184300
Cr. Budget release
(Being budget release and bank 184300
order received)



Office Practice and Accounting 10 277

Poush 3 Dr. N. R. Bank 184300
Cr. Budget release
(Being budget release and bank 184300
order received)
Poush 5 Dr. Ms Sanju Baral traveling 12500
expenses advance
Cr. N. R. Bank 12500
(Being advance given to Ms Sanju
Baral)
Poush 7 Dr. B. E. Office expenses 5400
Cr. N. R. Bank
(Being payment to office exp.) 5400
Poush 11 Dr. B. E. Communication charge 1500
Cr. N. R. Bank
(Being payment to phone charge) 1500
Poush 18 Dr. B. E. Traveling expenses 12500
Cr. Ram, Traveling expenses
advance clearance 12500
(Being Traveling expenses
advance clearance)
Poush 28 Dr. B. E. Salary 100000
Cr. Provident fund deduction
Cr. Provident fund loan deduction 10000
Cr. Income Tax deduction 7000
Cr. N. R. Bank
(Being distribution of salary after 2500
deducting necessary items) 80500
Poush 29 Dr. Provident fund 10000
Dr. Provident fund loan 7000
Dr. Income tax
Cr. NR Bank 2500 19,500
(Being deducted amount
deposited into concern offices)
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque Amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........











278 Office Practice and Accounting 10

Government of Nepal
District Education Office, Illam
AGF No. 8
Budget Sheet of Poush
Office
Traveling Commu- Exp- Furn- Machi.
Budget Head and Sub head Salary expenses nication enses iture Vehicle and
Equip.
Budge Head No. 21111 22612 22112 22311 29311 29411 29511
Annual appropriation 8,78,000 450000 20000 8000 70000 80000 100000 150000
Release Date Ref. Particulars Total
No.

09/03 A Release for Poush 184300 90000 1800 1500 14000 14000 40000 23000

09/05 Traveling expenses 12500 12500
advance
Paid for office
09/07 expenses 5400 5400
Expenditures 09/11 Telephone charge 1500 1500
paid

09/18 Traveling expenses 12,500 12,500
clearance (12,500) (12,500)
Distribution of
09/28 salary for the 100000 100000
month
Total expenses of
B 119400 100000 12500 1500 5400
Poush
Total expenses up
A+B 303700 190000 14300 3000 19400 14000 40000 23000
to Poush



EXERCISE


Answer the following questions in one sentence.
1. Name the parts of budget sheet.
2. In how many parts is the budget sheet divided?
3. In which part is budget transfer shown in the budget sheet?
4. Write the AGF No. of Budget Sheet and Bank Reconciliation Statement.

Give short answer to the following questions.

1. What is budget sheet? Explain its three parts.
2. What is budget sheet? Discuss its objectives.
3. Write any five dissimilarities between bank cash book and budget sheet.
4. Introduce budget sheet and mention any four steps/methods for preparing the
budget sheet.

Office Practice and Accounting 10 279

Practical Problems


1. The followings transactions are related to a government office. You are
required to prepare journal voucher and post them into budget sheet.


B. H. Budget Annual Expenditure up Expenditure of
Head No. appropriation to Shrawan Bhadra
Salary 21111 3,50,000 1,00,000 35,000
Allowance 21113 45,000 25,000 8,000
Rent 22122 10,000 - 2,000
Fuel 22211 60,000 25,000 8,000
Furniture & Fixture 29311 1,50,000 18,000 70,000
Vehicle 29411 50,000 - 50,000
Total 6,65,000 168000 173000


Bhadra 2 : Budget release order and bank order letter received for the actual
expenditure of Bhadra.

Bhadra 7 : A cheque of Rs. 4500 is issued to pay the bill of fuel.
Bhadra 11 : Rs. 7,000 from rent to allowances is transferred with the approval of
authority .
Bhadra 18 : Sofa set for office is purchased for Rs. 17000 through cheque.

Bhadra 20 : Issued a cheque of Rs. 18,000 for purchase of machinery.
Bhadra 28 : Distributed salary of Rs. 40,000 and allowances of Rs. 10,000 for the
month to the staff after deducting Rs. 4,000 for provident fund and 700
for income tax.


2. Following particulars of a government office are given below:
Shrawan 3 : Received a bank order and budget released order letter for the amount
equal to 1/6th of last year annual expenditure of Rs. 12,00,000.
Shrawan 5 : Issued a cheque of Rs. 10,000 to pay account allowance.

Shrawan 10 : Issued a cheque of Rs. 8,000 to purchase office supplies.
Shrawan 12 : Issued a cheque of Rs. 15,000 to pay house rent.
Shrawan 18 : Issued a cheque of Rs. 4,000 to purchase stationery.

Shrawan 26 : Distributed salary of Rs. 52,500 and allowance of Rs. 5,000 for the month
of Shrawan after deducting provident fund of Rs. 11,000 and income tax
of Rs. 2,000.
Required : Budget sheet .




280 Office Practice and Accounting 10

3. The following transactions are related to District Agriculture Office,
Jhapa.

Budget Head Annual Budget Expenses of Falgun Expenses upto Magh
Salary 4,15,000 18000 2,24,000
Field allowance 43,000 3200 8800
Office expenses 32,000 2,000 4,000
Miscellaneous 12,000 1200 2400
Furniture 52,000 5,000 13,000
Total 554000 29400 2,52,200

Falgun 2 : Received bank order letter and budget release order for the expenditure
of Magh.

Falgun 6 : Field allowance paid Rs. 2500 through cheque no. 6570.
Falgun 11 : Cheque no. 6789 of Rs. 4300 issued to pay office supplies.
Falgun 23 : Hospitality expenses Rs. 2200 is paid through cheque no. 5750
Falgun 30 : Cheque no. 4609 of Rs. 40,000 for salary and Rs. 4,000 for allowance
issued after deducting provident fund as per rule.

Prepare : a) Journal voucher b) Budget sheet

4. Following information is given:


Annual Budget Budget Heads Expenses upto Bhadra Expenses of Ashwin
(Rs.) (Rs.) (Rs.)
4,00,000 Salary 60,000 64,000
20,000 Allowance 4,000 2,000
30,000 Office Operating Expenses 8,000 2,000
50,000 Furniture 20,000 10,000
50,000 Machinery & Equipments 40,000 -
10,000 Contingencies - -
5,60,000 1,32,000 78,000


Kartik 3 : Received bank order and release order for actual expenditure of Ashwin
month
Kartik 10 : Received bills for purchase of furniture of Rs. 10,500 against the advance
of Rs. 10,000 paid to Mr. Bhattarai and his advance is cleared.
Kartik 20 : Issued a cheque of Rs. 3,000 for the payment of office materials.
Required : Budget sheet






Office Practice and Accounting 10 281

UNIT
11 Monthly Statement of


Expenditure

























Learning objectives:


After the completion of this unit, students will be able to
understand :
• meaning of monthly statement.
• statement of expenditure (AGF No. 13).
• statement of advance expenditure (AGF No. 14).
• bank reconciliation statement (AGF No. 15).
• monthly statement of revenue (AGF No. 9).

• monthly statement of security deposit (AGF no. 19).






















282 Office Practice and Accounting 10

11 Monthly Statement of
Expenditure
















According to New Accounting System, every operating level government office
should prepare certain types of report at the end of month and submit it to the Office
of Treasury and Comptroller and central level. These financial reports prepared by
operating level office are known as monthly statement which are prepared to know
the actual position of budget release, budget expenditure, bank and cash balance and
advance transactions. These reports are prepared in the prescribed form and formats
and submitted on monthly basis or as required by central office or department.
The main monthly statements prepared by operating level office are Statement of
Revenue (AGF No. 9), Monthly Statement of Expenditure (AGF No. 13), Statement
of Clearance of Advance (AGF No. 14), Bank Reconciliation Statement (AGF No. 15)
Monthly Statement of Security Deposit (AGF No. 19). Operating level offices should
submit the monthly expenditure report to get budget for the following month. For
this purpose, operating level offices are required to prepare and submit the financial
reports regularly. Respective central office and department collects such statements
and submits these to Ministry of Finance. While preparing the budget for next year,
Ministry of Finance takes these reports as a strong base.

Importance and objectives of monthly statement

i. Helps to know the actual position of budget release, budget expenditure, bank
and cash balance and advance transactions.

ii. Helps to maintain the budgetary control.
iii. Helps operating level office to maintain up-to-date and secret financial record.
iv. Helps to prepare future budget plan.
v. Helps central level to take decision in financial and budgetary matter.

vi. Helps to analyze budget variance and take the corrective action on budget.
vii. Helps to evaluate the performance of operating level office in terms of budget
utilization.




Office Practice and Accounting 10 283

Types of Monthly Statements
Statement of Revenue (AGF No. 9),

Monthly Statement of Expenditure (AGF No. 13),
Statement of Clearance of Advance (AGF No. 14),

Bank Reconciliation Statement (AGF No. 15)
Monthly Statement of Security Deposit (AGF No. 19)
The governments offices which are involved in collection of government revenue
prepare Statement of Revenue. Such office are Custom Offices, Office of Transportation,
Inland Revenue Office, office of Public Service Commission, etc. Statement of Revenue
shoud be prepared at the end of the month and to be submitted to concerned central
office. Auditor General Form (AGF) No 9 is designed to keep the record of Statement
of Revenue.


Specimen

AGF NO. 9

Government of Nepal
.............. Office / Department / Ministry
Statement o Revenue for the month of …………
Revenue up to
S. Code Revenue of Total
No No. Budget Head the previous this Month Revenue
Month

















Position of Fund
Statement of Clearance of Advance (AGF No. 14), Rs………..
1.

Bank deposit of last month


2. Total revenue Rs. ………….
3. Deposited to consolidated fund
4. Cash balance
Accountant Office Head



284 Office Practice and Accounting 10

Statement of Clearance of Advance (AGF No. 14) is necessary to be prepared and
submitted by an operating level office along with monthly report. The operating level
office provides advances to the employees or to the party concerned under different
budget heads for different purposes. Sometimes advance given to employee may not
be clear at the end of fiscal year. Such expenses should be cleared artificially treating
as expenses equal to advance. To record such transactions a separate statement is
prepared which is called Monthly Advance Expenditure Report. This report is
prepared with the help of journal voucher, bank cash book and advance ledger
account. It includes date of advance given, name of the person receiving the advance,
the amount of the advance, possible reasons for non-clearance of advance.

The specimen of the report is given below.


AGF NO. 14

Government of Nepal
.............. Office / Department / Ministry
Monthly Advance Expenditure Report
Date of advance Advance to …… Advance Reasons for non-clearance
given Amount
Rs. Paisa

















Submitted by: .................... Date: ....................
Approved by: .................... Date: ....................



Bank Reconciliation Statement (AGF No. 15)
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. Operating level offices
maintain a cash book to record all the cash and banking transactions which is known
as bank cash book. Every monetary transaction occurred in office is recorded in bank
cash book. At the same time, the bank also maintains the account of its customer

Office Practice and Accounting 10 285

in their personal ledger to record every deposit and withdrawal of customer. The
bank cash book and bank statement record the same transactions, thus, the balance
disclosed by them must tally. But it very often happens that the bank balance as shown
by the cash book does not tally with the balance shown by the bank pass book. To find
out the differences between cash book and bank statement balances a statement is
prepared which is known as Bank Reconciliation Statement. It is maintained in AGF
No. 15 under New Accounting System. The bank reconciliation statement is prepared
on a given date showing the reasons of the differences in the balances between the
bank cash book and bank statement. The following are the reasons that cause the
difference in balance of cash book and pass book:
i. Cheque issued but not presented for payment.
ii. Cheque deposited but not collected by the bank.
iii. Amount directly deposited in to bank by a customer.
iv. Interest credited by the bank on deposit.
v. Interest, service charge and necessary expenses charged by the bank
vi. Payment made by the bank to outsiders but no recorded in cash book.
vii. Any errors in cash book or pass book.

AGF NO. 15

Government of Nepal
.............. Office / Department / Ministry
Bank Reconciliation Statement
For the month of ............


Bank Balance as per ……………… Rs. .................
Add:
Rs. .................
Rs. .................
Rs. .................


Less:
Rs. .................
Rs. .................
Rs. .................

Bank balance as per ……………



Submitted by: ........................ Designation: ....................... Date: ................
Approved by: ........................ Designation: ...................... Date: ...............





286 Office Practice and Accounting 10

Monthly Statement of Security Deposit (AGF No. 19)
Security deposit is essential in the field of developmental and constructional work.
Constructional activities of government are carried out through contractors. While
carrying out such constructional work, contractor should deposit certain percentage
of tender price to the concerned office as security deposit. Office should prepare
monthly statement of transactions related to security deposit in prescribed forms and
formats and submit to respective Central Level Offices. It should be submitted within
7 days of next month to the concerned offices. Such deposit will be refunded after the
completion of job. The amount of deposit is deposited into security deposit account
of Nepal Rastra Bank. Monthly Statement of Security Deposit is prepared under AGF
No. 19.


AGF NO. 15
Government of Nepal

.............. Office / Department / Ministry
Bank Reconciliation Statement
For the month of ............

Security deposit up to the previous month Rs. .................
Add: Security deposit during this month Rs. ................
Total Rs. ................




Less: Refund ` Rs. .................
Adjustment Rs. .................





Balance Rs. .................

Position of Fund
Account No. Bank Balance…….. Cash balance Rs.

Submitted by: ........................ Designation: ....................... Date: ................
Approved by: ........................ Designation: ...................... Date: ...............












Office Practice and Accounting 10 287

Monthly Statement of Expenditure (AGF No. 13)
Monthly Statement of Expenditure is a report prepared by operating level office
at the end of each month that depicts the information of total budget release, total
expenditure, annual budget apportionment, budget balance, bank balance and cash
balance. In addition to this, amount of un-cleared advance, net expenditure, loan
given and received are also reflected in Monthly Statement of Expenditure. It is
known as monthly expenditure report. Operating level offices are required to prepare
and submit this statement to its corresponding central level offices at the end of every
month. It helps the central level to take decision in financial and budgetary matter.
Monthly Statement of Expenditure is prepared under AGF No. 13.

AGF NO. 13

Government of Nepal
............ Office / Department / Ministry
Statement of Expenditure of ............. month ......... year
Expenditure
Expenditure Release up to the end of .....month B.H. Budget Annual up to the Balance
for the OR heads and approp-
month of .... Allotment till the month of .......... No. sub-heads riation end of …… budget
month .
(i) (ii) (iii) (iv) (v) (vi) (vii)














Fund Position
Total allotment received up to ........ Rs. ............... (i) Bank Balance Rs. ........ (v)
Total expenditure up to ..................... Rs. ............... (ii) Cash balance Rs .......... (vi)
Unclear advance........ Rs. ............... (iii) Total Rs. ................
Net expenditure (Total expenditure– Uncleared advance)................................ Rs. ............... (iv)


Submitted by ................... designation .................... Date: .............
Approved by ................... Designation ................... Date: ..............













288 Office Practice and Accounting 10

The statement of expenditure has two parts
1. Part showing budget position
2. Part showing fund position


Part showing budget position:
This is the first part of statement of expenditure which has seven columns. They are
as follows:
i. First column: Amount of budget expenditure incurred under different budget
heads and sub-heads for the current month is mentioned in this column. For
example, if the statement is being prepared for the month of Baishak, the
amount of expenditure for the month of Baishakh is written in this column.
ii. Second column: This column is to record the release up to the end of current
month. In other words, expenditure till the previous month is recorded in this
column. The amount of budget release will always be equal to the amount of
budget expenditure up to the previous month. Thus, total of this column helps
to calculate the amount of revolving fund balance. For example, if the report is
being prepared for the month of Baishak, expenditure up to the end of Chaitra
which is equal to the release up to the Baishak, is recorded.
iii. Third column: This column records the budget head number of related
expenditure. For example, 21111 for salary.
iv. Fourth column: The name of related budget head is recorded in this column.
For example, salary, office expenses, furniture, etc.
v. Fifth column: The amount of total annual appropriation of budget head is
recorded. For example, if Rs. 50000 is allotted for salary for the year, then Rs.
500000 is recorded.
vi. Sixth column: In this column, the amount of total expenditure made up to the
current month is recorded. The amount of this column is the sum of column
first and column second.
vii. Seventh column: The remaining budget balance for the rest of months on
each budget head is calculated and written in this column. The amount of this
column is the amount of fifth column less amount of sixth column.

2. Fund position part

This is second part of the report which shows the position of the following:
a. Total amount received up to the current month: it is the amount that is released
up to the current month. It shows the amount of total imprest fund release. This
amount should be equal to the sum of column second of first part and revolving
fund balance.
Total imprest fund received = Total expenditure to date + bank balance + petty
cash balance + loan given – loan received – deposit received.


Office Practice and Accounting 10 289

b. Total expenditure up to the current month: It is the amount of total expenditure
appeared in budget sheet up to the current month.
Total expenditure up to the current month= total expenditure of the month
+total release up to the current month.
c. Un-cleared advance: If any amount of advance is still to be cleared till the
statement date, the amount is written. Un-cleared advance is determined by
deducting cleared amount from advance paid.
Net expenditure: It is calculated deducting un-cleared advance amount from
the amount of total expenditure up to the current month.
d. Bank balance: It is the amount of bank balance at the end of the current month.
It is the balance of total amount deposited less total amount withdrawn. If
amount of bank balance is not given it is calculated as,
Bank balance = Total imprest fund received – Total expenditure up to current
month – petty cash fund – loan given + loan payable + security deposit received.
e. Cash balance: It is an amount of petty cash balance at the ending date of
statement. If amount of cash balance is not given, it is calculated as,
Cash balance = Total imprest fund received – total expenses up to the current
month – loan given – bank balance + loan payable+ security deposit received .




Illustrations

1. The following information is related to the District Forest Office, Bhaktapur.

Budget Head Expenses up Expenses of
and Sub head Budget Head No Budget Head No to Chaitra Baishak
Salary 21111 194000 94,500 24,500
Allowance 21112 6500 3,500 1000
Fuel 22211 27,000 12,000 2,000
Furniture 29311 40,000 12,000 8,000
Total 2,675,00 1,22,000 35,500



Additional information:
i. Total imprest fund received Rs. 4,00,000
ii. Petty cash fund balance Rs. 500
iii. Uncleared advance Rs. 8500
Required: Statement of expenditure of the month of Baisakh







290 Office Practice and Accounting 10

AGF NO. 13
SOLUTION Government of Nepal

District Forest Office, Bhaktapur
Statement of Expenditure for the Month of Baishakh

Allotment till
Expenditure the month of B.H. Budget heads Annual Expenses up to the Balance
of Baishakh No. budget month of Baishak budget
Baishak
24,500 94,500 Salary 194000 119000 75000
1000 3,500 Allowance 6500 4500 2000
2,000 12,000 Fuel 27,000 14000 13000
8,000 12,000 Furniture 40,000 20000 20000
35,500 1,22,000 267500 157500 110000
– 2,78,000 Imprest fund balance – – –
35500 4,00,000 Total 267500 157500 110000

Fund Position
Total release Rs. 4, 00,000 Bank balance Rs.242500
Total expenditure Rs. 1,57,500 Cash balance Rs. 500
Rs. 242000
Unclear advance Rs. 8500
Net Expenditure Rs. 1,49,000
Submitted by: ........................ Designation: ........................ Date: .............
Approved by: ........................ Designation: ........................ Date: .............



Bank Balance=Total imprest fund – Total expenditure up to Baishakh–Petty cash fund
=Rs. 400000-RS 157500-Rs500=Rs. 242500

2. From the following information prepare monthly expenditure report for
Poush.


Expenditure Budget Head Annual Budget Budget Balance
(Poush)
29,750 Salary 3,91,000 89,250
10,200 Traveling expenses 1,53,000 34,000
9,775 Fuel 1,36,000 29,750
11,050 Furniture 1,44,500 34,000
6,375 Machinery 80,750 19,125`
51,000 Dress Materials 1,78,500 42,500
1,18,150 Total 10,83,750 2,48,625




Office Practice and Accounting 10 291

Additional information:
i. Total revolving fund received Rs. 8,33,000
ii. Un-cleared advance Rs. 6,800
iii. Bank balance Rs. 3,825
iv. Cash balance Rs. 595


AGF NO. 13

Government of Nepal
............ Office / Department / Ministry
Statement of Expenditure of Poush

Allotment till
Expenditure B.H. Annual Expenses up to the Balance
of Poush the month of No. Budget heads budget month of Poush budget
Poush
29,750 2,72,000 21111 Salary 3,91,000 3,01,750 89,250
10,200 1,08,800 22612 Traveling expenses 1,53,000 1,19,000 34,000
9,775 96,475 22211 Fuel 1,36,000 1,06,250 29,750
11,050 99,450 29311 Furniture 1,44,500 1,10,500 34,000
6,375 55,250 29511 Machinery 80,750 61,625 19,725
51,000 85,000 21121 Dress Material 1,78,500 1,36,000 42,500
1,18,150 7,16,975 8,35,125 2,48,625
– 1,16,025 Revolving fund balance
1,18,150 8,33,000 8,35,125 2,48,625

Position of Fund
Total release up to Poush Rs. 8,33,000 Bank balance Rs. 3,825
Total expenses up to Poush Rs. 8,35,125 Cash balance Rs. 595
Un-cleared advance Rs. 6,800 Total 4,420
Actual expenditure up to Poush Rs. 8,28,325
























292 Office Practice and Accounting 10

3. The following information is given:


Expenditure up to
Budget Head Annual Budget Expenses of Asoj
Bhadra
Salary 4,26,000 66,000 63,000
Allowance 24,000 4,000 2,000
Office supplies 40,000 8,000 4,000
Office material 60,000 16,000 10,000
Furniture 48,000 20,000 8,000
Contingencies 8,000 – –


Additional Information:
i. Total imprest fund received Rs. 2,15,000
ii. Petty cash fund Rs. 1,000
iii. Unclear advance Rs. 8,000
Required: Statement of expenditure showing balance at bank.

AGF NO. 13


Government of Nepal
............ Office / Department / Ministry
Statement of Expenditure of Ashoj
Allotment till Expenses up
Expenditure the month of B.H. Budget heads Annual to the month Balance
of Ashoj No. budget budget
Ashoj of Ashoj
63,000 66,000 21111 Salary 4,26,000 1,29,000 2,97,000
2,000 4,000 21112 Allowance 24,000 6,000 18,000
4,000 8,000 22311 Office Supplies 40,000 12,000 28,000
1,000 16,000 22311 Office material 60,000 26,000 34,000
8,000 20,000 29311 Furniture 48,000 28,000 20,000
– – 22911 Contingencies 8,000 – 8,000
87,000 1,14,000 6,06,000 2,01,000 4,05,000
– 1,01,000 Imprest fund balance
87,000 2,15,000 6,06,000 2,01,000 4,05,000
Position of Fund
Total release up to Asoj Rs. 2,15,000 Bank Balance Rs. 13,000
Total expenses up to Asoj Rs. 2,01,000 Cash Balance Rs. 1,000
14000
Un-cleared Advance Rs. 8,000 Total Rs. 14,000
Net expenditure Rs. 193000
Submitted by: ........................ Designation: ........................ Date: .............
Approved by: ........................ Designation: ........................ Date: .............


Office Practice and Accounting 10 293

4. Following information is given :


Expenditure up to
Budget Head Annual Budget Expenses of Kartik
Aswin
Salary 2,00,000 80,000 30,000
Allowance 10,000 6,000 1,000
Rent 50,000 20,000 4,000
Office suppliers 50,000 25,000 4,000
Furniture 70,000 20,000 –


Additional information:

i. Total revolving fund received Rs. 2,00,000
ii. Petty cash fund balance Rs. 1,000
iii. Deposit from furniture supplier Rs. 5,000
Required: Statement of expenditure for the month of Kartik shown:
i. Amount of bank balance
ii. Budget release in each budget head.
iii. Budget balance in each budget head.
iv. Total expenditure up to Kartik in each budget head.


AGF NO. 13
Government of Nepal
............ Office / Department / Ministry
Statement of Expenditure for the month of Kartik
Expenses up
Expenditure Allotment till B.H. Budget heads Annual to the month Balance
the month of
of Kartik No. budget budget
Kartik of Kartik
30,000 80,000 21111 Salary 2,00,000 1,10,000 90,000
1,000 6,000 21112 Allowance 10,000 7,000 3,000
4,000 20,000 22121 Rent 50,000 24,000 26,000
4,000 25,000 22211 Office suppliers 50,000 29,000 21,000
– 20,000 29311 Furniture 70,000 20,000 50,000
39,000 1,51,000 Total 3,80,000 1,90,000 1,90,000
49,000 Imprest fund balance – – –
2,00,000 3,80,000 1,90,000 1,90,000

Position of Fund
Total revolving fund up to Kartik Rs. 2,00,000 Bank balance Rs. 9,000
Total expenditure up to Kartik Rs. 1,90,000 Cash balance Rs. 1,000
Un-cleared amount of advance Rs. 10,000 Total balance Rs. 10,000
Actual expenditure after adjusting
advance Rs. 1,90,000 (–) Loan payable Rs. Nil
(+)Loan receivable Rs. Nil
Working Notes:


294 Office Practice and Accounting 10