Book 10 Account Final for 2077_new

21123 Medical treatment expenses: It includes the expenditure provided to the government employees for their medical treatment, health insurance etc. Base head 22000 consists of amount paid for the use of materials and services. It has main heads 22100, 22200, 22300, 22400, 22500, 22600, 22700 and 22900 which include the following: 22100 Services and rental charge 22110 Service charge 22111 Water and electricity: It includes the following: - Water supply and electricity charge - Installation charge for electricity and water - Deposits for installation of water supply and electricity - Other expenses incurred to avail these facilities 22112 Communication charge: It includes the following: - Charge for use of telephone, telegram, trunk call, telex, internet, website etc. - Charge for use of computer, fax and other communication devices - Deposits for installation of communication services - Other expenses required to avail those facilities 22120 Rental charge 22121 H ouse rent: It includes rent of land, building and godown 22122 Other rent: It includes rent for the use of other assets like vehicle, plant and machinery and other capital assets. But rent for public construction is added on concerned capital expenditure heads. 22200 Circulation and maintenance of capital assets 22210 Circulation and maintenance of capital assets 22211 Fu el: It includes the cost of fuel or lubricants for vehicle like gas, kerosene, petrol, diesel, coal, firewood, batteries etc. But fuel used for construction work should be charged on concerned expenditure head. 22212 Repair and maintenance: It includes the expenses paid for the regular maintenance of capital assets like building, machinery, vehicle, furniture, equipment, road, bridge, irrigation, cannel, warehouse etc.  which are regular used for official purpose. But the repair and maintenance of capital assets are treated as capital expenditures and included in respective budget head. Government Accounting 201

22213 Insurance: It includes the insurance of public properties like road, bridge, canals, building, machinery equipment, vehicle, hydropower house and third party insurance. But insurance of assets under construction are included on concerned budget head. 22300 Office material and services 22310 Office material and services 22311 Office related expenses: It includes the following: - Expenses for letter, parcel, postage stamp, registration, return receipt and courier charge - Cost of materials required for daily official use like papers, envelops, forms, record file, stapler, punching machine and related materials - Stationery materials for day to day operation of office like pen, ink, pencil and papers etc. - Expenses incurred for office printing, news paper, magazines and books for official use - Publication expenses relating to government notification, auction, sale, tenders, bidding etc. - Durable office materials and equipment costing less than Rs 2,000 - Bank charge, compensation and other services charge - Transportation charge for transporting official goods from one place to another 22312 Feeding materials: It includes the expenses made for feeding materials for birds and animals. 22313 Books and materials: It includes the cost of books, sports and educational materials freely distributed by the public schools and the cost of books purchased by the public libraries. 22314 Fuel for other purpose: It includes the cost of fuel for other administrative purpose like gas, kerosene, petrol, diesel, coal, firewood battery etc. But fuel and battery for vehicle is included in the head 22212. 22320 Maintenance cost of public properties 22321 Maintenance cost of public properties: It includes repairs and maintenance of public properties like road, bridge, canals, building, hydropower house etc. and their insurance. 202 Office Management and Accountancy

22400 Consultancy and service charge 22410 Consultancy and other service charge: It includes the following heads. 22411 Consultancy and service charge: It includes the expenditure related to study report and adviser, software renewable and service charge. 22412 Other service charge: It includes the following : - Service charge paid to sweepers for cleaning office building, maintenance of garden. Service charge paid to contractor for maintenance of office machinery and equipments like computer, photocopy machine telephone, fax etc. - Service charge paid for carrying parcel, running vehicle service, primary health service etc. 22500 Program expenditure 22510 Training and seminar 22511 Employee training: It includes the expenses incurred for conducting training, seminar and workshop for the career development and enchancing the efficiency of government employees. 22512 Skill development and public awareness training and seminar expenses: It includes the following: - Cost incurred for conducting public seminar, training including allowance to the participants in public training for increasing efficiency, self employment income generation empowerment and building sense. - Allowance to resource person for providing service to the targeted group. - TADA (Travelling and Daily Allowance) to trainee and trainer as per the government norms. 22520 Production materials and service 22521 Production materials and service: It includes the following: - Cost of raw materials, labour and production expenses incurred on material for converting into finished goods. - Production of goods like postal stamp, post card, domestic goods, insecticides, fishery, animal husbandry and other agriculture products. 22522 Other program expenses: It includes the program expenditure not included in other heads like ritual functions, workshop, religious program etc. Government Accounting 203

22530 Medicine 22531 Medicine: It includes the medicines provided by government hospital, health post Ayurbed, Ausadhalaya and medicine used for treatment to the patient including transportation charge. 22600 Investigation evaluation and travelling expenses 22610 Investigation evaluation and travelling expenses 22611 Investigation evaluation expenses: It includes the expenses incurred on Investigation and evaluation and preparation of report relating to it. 22612 Travelling expenses: It includes the following: - Amount paid to employees for travelling and daily expenses while transferring from one office to another office including their family members as per the government rule. - Expenses paid to employees for on foot allowance, fare charge with government tax, daily expenses for lodging and fooding etc. for government program. 22613 Travelling program expenses of high level personalities and council of representative: It includes transportation, tax, insurance, daily allowance, accommodation, uniform and other expenses related to the travelling of high level personalities and council of representative. 22614 Other travelling expenses: It includes the travelling expenses for the person who stand as witness from government’s side in law or legal cases. 22700 Miscellaneous expenses 22710 Miscellaneous expenses 22711 Miscellaneous expenses: It includes the following: - Expenses for entertainment, exhibition, display, refreshments and parties. - Expenses for maintaining peace and security. - Expenses relating to festivals and workshops. - Expenses for hospitality and other expenses not included in other heads. 22900 Contingencies expenses 22910 Contingencies expenses 22911 Contingencies expenses (Regular): It includes the budget which is not mentioned in any other budget head for operation of government work. 204 Office Management and Accountancy

Base head 24000 consists of interest service charge and bank commission. It has main heads 24100 and 24200 that include the following: 24100 Interest on foreign loan 24110 Interest on foreign loan 24111 Interest on foreign loan: It includes interest and service charge paid for external loan. 24200 Interest, service charge and bank charge on internal loan 24210 Interest, service charge and bank charge on internal loan. 24211 Interest on internal loan: It includes interest paid on internal loan. 24212 Service charge and commission: It includes the service charge and bank commission paid to take internal loan. Base head 25000 consists of current subsidies paid to public enterprises and other institution. It has the main heads 25100 and 25200 that include the following: 25100 Subsidies to public enterprises 25110 Subsides to non financial corporation 25111 Subsidies to non financial corporation (current): It includes current subsidies to government and semi government corporations and other independent public corporations. 25112 Subsidies to non financial corporation (capital): It includes the subsiding given to non financial public bodies for capital expenditure like purchase of machinery, equipments, furniture, vehicles, land, building etc. 25120 Subsidies to financial corporation 25121 Subsidies to financial corporation (current): It includes current subsidies to government and semi government corporations and other independent public corporations. 25122 Subsidies to financial corporation (capital): It includes the subsiding given to financial public bodies for Capital expenditure like purchase of machinery, equipments, furniture, vehicles, land, building, etc. 25200 Subsidies to private institution 25210 Subsides to non financial private institution (current) 25211 Subsidies to non-private institution (current): It includes current subsidies to non financial private business firms. Government Accounting 205

25212 Subsides to non-financial private institution (capital): It includes the subsidies given to non financial private business firm for purchase of machinery, equipment, furniture, vehicles, land and building etc. 25220 Subsidies to financial private institution 25221 Subsidies to financial private institution (current): It includes current subsidies to financial private business firm. 25222 Subsidies to financial private institution (capital): It includes the subsidies given to financial private business firm for purchase of machinery, equipment, furniture, vehicles, land and building etc. Base head 26000 consists of grant provided to other government institution or international institution. It has main heads 26200, 26300 and 26400 that includes the following: 26200 International membership and grant 26120 International membership and grant 26211 International membership and grant: It includes donation, membership and renewable fee at international level membership and renewable fee at international level. 26300 Grant to local bodies 26310 Grant to local bodies (current) 26311 Current grants to local bodies (without condition): It includes the grant provided to local bodies of the government to bear current expenditure and make programs in self decision. 26312 Current grant to local bodies (with condition): It includes the grant provided to local bodies of government to bear the expenditure of mentioned program. 26320 Grant to local bodies (capital) 26321 Capital grant to local bodies (without clause): It includes the grant provided to local bodies for purchase of machinery, furniture, vehicles, land and building, civil works, production of goods or services etc without any condition. 26322 Capital grants to public bodies (with clause): It includes the grant provided to public bodies to make expenditure for mentioned program. 26400 Social service grant 206 Office Management and Accountancy

26410 Current social service grant 26411 Current grant to public bodies, committee boards (without clause): It includes the following: - Grant paid to board, committee, educational institution, hospital etc by the government without clause. - Foods, clothes and other facilities provided to patient at hospital or prisoner at jail etc without clause. 26412 Current grant to public bodies, committee, board (with clause): It includes the following - Grant provided to board, committee, educational institutions, hospitals etc for the mentioned program with clause. - Food, clothes and other facilities provided to patient at hospital or prisoner at jail etc with clause. 26413 Current grant to other person or institution (with clause): It includes the following. - Compensation provided to the parties suffering due to national disasters and other causes. - Operational grant provided to social service organizations, temples etc. - Financial assistance, rewards and other grants provided by the government. 26420 Capital social service grant. 26421 Capital grant to government bodies, committee, board (without clause): It includes grant provided for capital assets like furniture, vehicles, machinery, equipment, land, building etc to government bodies, committee, board etc created by law with clause. 26423 Capital grant to other social organizations (with clauses): It includes capital grant to other social institutions like educational institutions, hospital and social organizations with clause. Base head 27000 consists of social security. It has main heads 27100, 27200 and 27300 that includes the following. 27100 Social security 27110 Social security 27111 Social security (without clause): It includes the financial assistance provided to disabled, old aged people, widows etc. Government Accounting 207

27112 Other social security grant (without clause): It includes medical treatment expenditure and financial compensation paid to ordinary person or national figure. 27200 Scholarship 27210 Scholarship 27211 Scholarship: It includes the scholarship provided in cash, goods and other benefits to the students as scholarship at school, college and university level 27300 Gratuities 27310 Gratuities 27311 Retirement benefits: It includes gravity and allowance to the retired employee and allowance given to retired unable employee. 27312 Gratuity: It includes the gratuity provided to the retired employee. 27313 Accumulated leave to retired: It includes amount paid to retired employee as accumulated leave. 27314 Medical allowances to retired: It includes amount paid to retired employee as medical treatment. 27315 Support and benefits to the deceased employee: It includes the following: - Amount paid to the dependents of deceased employee as financial support including provident fund. - Additional amount paid to the dependents of deceased employee by the government. Base head 28000 consists of other expenditure. It has main heads 28100 and 28200 that includes the following: 28100 Assets related expenditure 28110 Rent for land 28111 Rent for land: It includes the rent paid for the use of land and compensation for the loss of crops. 28200 Refund expenditure 28210 Refund expenditure 28211 Revenue refunds: It includes return of import duties, sales tax, land tax, penalties and other refund expenses. 28212 Legal refunds: It includes the amount refunded by the government as per judicial decision. 208 Office Management and Accountancy

28213 Other refund: It includes the other refunds of government excepts revenue refund and judicial refund. Base head 29000 consists of capital expenditure. It has main heads 29100, 29200, 29300, 29400, 29500, 29700 and 29800 that includes the following: 29100 Purchase of land 29110 Purchase of land 29111 Purchase of land: It includes expenditure for purchase of land, compensation on acquisition of land with tax and other acquisition expenses. 29200 Building 29210 Purchase of building 29210 Purchase of building: It includes expenditure for purchase of constructed buildings with its premises, compensation and tax paid for acquiring building. 29220 Building construction 29221 Building construction: It includes the cost of construction of building, shed and compound wale, cost of their expansion like addition of rooms, stores etc. 29230 Capital maintenance expenses (building): It includes the expenses made for the renovation of present building that add the life. But only maintenance of capital asset is included in 29221. 29300 Furniture and fixtures 29310 Furniture and fixtures 29311 Furniture and fixtures: It includes the expenditure made for purchase of furniture including transportation insurance VAT etc. 29400 Vehicles 29410 Vehicles 29411 Vehicles: It includes the following: - Cost of purchasing all types of means of transport like airplane, helicopter, jet, jeep, motor, car, bus, truck, motorcycle, cycle, horse, bull etc. - Cost relating to import of vehicles and vehicles engine, insurance, tax and duties etc. 29500 Machinery and equipment 29510 Machinery equipment: It includes the following: Government Accounting 209

29511 Machinery and equipment - Cost of purchasing machineries like agricultural tools and various equipments, generators, transformers - Cost of office machines and equipments like typewriter, computer, printer, photocopy machine, telephone set, TV, heater, fax machine, security equipments etc. - Cost of transportation, import duty, insurance and other for importing machine and equipments. - Office equipment used in office costing more than Rs. 2000 but office equipment costing less than Rs. 2000 are included in 22311 29600 Public construction 29610 Public construction 29611 Public constructions: It includes the following: - Cost of construction of highway, roads, bridges and expansion of highway, road, bridge, airport, powerhouse, ropeway, air drove etc. - Construction of structure for public used like forest mining etc. 29620 Public construction 29621 Public constructions (capital): It includes the maintenance cost on building and other capital assets for extending the quality and life of the assets. But it does not include the cost of expansion and addition to the existing capital assets. 29700 Capital research and consultancy 29710 Capital research and consultancy 29711 Capital research and consultancy cost: It includes the cost of feasibility study, drafting cost of surgery, design, technical consultancy service, supervision cost, cost of research etc. 29712 Software development and purchase expenditure: It includes the cost incurred for the development of software incurred for upgrade of software. 29800 Capital contingencies 29810 Capital contingencies 29811 Capital contingencies expenditure: It includes the capital nature contingencies expenses which are not mentioned at the time of budget appropriation. 210 Office Management and Accountancy

Summary of budget heads and code number Code No. Budget head Code No. Budget head 21111 Salary 22614 Other travelling expenses 21112 Local allowance 22711 Miscellaneous expenses 21113 Dearness allowance 22911 Contingencies expenses 21114 Field allowance 24111 (Regular) 21119 Other allowance 24211 Interests on foreign loan 21121 Uniform 24212 Interest on internal loan 21122 Food 25111 Service charge and 21123 Medical treatment expenses 25112 commission 22111 Water and electricity 25121 Subsidies to non financial 22112 Communication charge 25122 corporation (current) 22121 House rent Subsidies to non financial 22122 Other rent 25211 corporation (capital) 22211 Fuel Subsidies to financial 22212 Repair and maintenance 25212 corporation (current) 22213 Insurance Subsidies to financial 22311 Office related expenses 25221 corporation (capital) 22312 Feeding materials 22313 Books and materials 25222 Subsidies to non private 22314 Fuel for other purpose institution (current) 22321 Maintenance cost of public properties 26211 22411 Consultancy and service charge Subsides to non financial 22412 26311 private institution (capital) 22511 Other service charge 26312 22512 26321 Subsidies to financial private Employee training 26322 institution (current) 22521 26411 Skill development and public Subsidies to financial private 22522 awareness training and institution (capital) 22531 seminar expenses 22611 Production materials and International membership and service grant 22612 Other program expenses 22613 Medicine Current grants to local bodies Investigation evaluation (without condition) expenses Current grant to local bodies Travelling expenses (with condition) Travelling program expenses Capital grant to local bodies of high level personalities and (without clause) council of representative Capital grants to public bodies (with clause) Current grant to public bodies, committee boards (without clause) Government Accounting 211

26412 Current grant to public bodies, 28111 Rent for land committee, board (with clause) 28211 Revenue refunds 26413 Current grant to other person 28212 Legal refunds or institution (with clause) 28213 Other refund 26421 Capital grant to government 29111 Purchase of land bodies, committee, board 29221 Building construction 26423 (without clause) 29311 Furniture and fixtures Capital grant to other social 29411 Vehicles 27111 organizations (with clauses) 29511 Machinery and equipment 27112 Social security (without clause) 29611 Public constructions Other social security grant 29621 Public constructions (capital) 27211 (without clause) 29711 Capital research and 27311 Scholarship consultancy cost 27312 Retirement benefits 29712 Software development and 27313 Gratuity purchase expenditure 27314 Accumulated leave to retired 29811 Capital contingencies 27315 Medical allowances to retired expenditure Support and benefits to the Key deceased employee Terms Auditing – act of examining the books of account to ensure the correct application of accounting principles. Awarje – a ledger book of a government office maintained under Syaha Sresta Pranali. Budget – estimation of revenue and expenditure for forth coming year. Budget heads – heads for making expenditure under government accounting like salary, furniture, vehicles etc. Business accounting – accounting system used by the business organizations to keep the record of financial transactions. Consolidated fund – a fund of government of Nepal of depositing surplus money, unspent budget or other revenues. Decentralized – authority delegated to the local bodies. Government accounting – accounting system used by the government offices to keep the record of revenues and expenditures. Syaha – primary recording of financial transactions named under Syaha Sresta Pranali. Uniformity – similarity. 212 Office Management and Accountancy

A. Very short answer questions 1. What is government accounting? 2. When was budget system originated in Nepal? 3. When was payment accounting system implemented in Nepal? 4. When was account committee formed in Nepal to suggest a suitable accounting system? 5. When did the Auditor General approve the draft presented by an account committee 2017? 6. When was the Office of the Auditor General established in Nepal? 7. Which institution maintains the central level account of revenue and expenditures of government offices? 8. When did the government establish the Treasury and Comptroller offices in all the 75 districts? 9. Which office performs the internal audit of district level government offices? 10. Which institution does the final audit of government offices? 11. Who does the final audit of a company? 12. Write the full form of DTCO. 13. Under which ministry does the Office of the Finance Comptroller General remain? 14. When was Kumari Chowk Adda established ? 15. When were new accounting forms brought into use under the recommendation of the Auditor General? 16. Write the budget head number of salary and furniture. 17. Write the budget head of vehicles and medicine. 18. Write the budget head of office related expenses. 19. Which institution keeps the record of consolidated fund and other governmental funds? 20. Who appoints the Auditor General? Government Accounting 213

B. Short answer questions 1. Define government accounting and differentiate between government accounting and business accounting. 2. Mention any five differences between central level accounting and operating level accounting. 3. What is the Office of the Auditor General? Mention the functions and duties of the Auditor General. 4. Introduce the Office of the Comptroller General and write its major functions. 5. What is auditing? Explain the development process of audit in Nepal. 6. Describe the importance and advantages of auditing. 7. Differentiate between internal and final audit. C. Long answer questions 1. What is new accounting system? Explain its major objectives. 2. Describe the features of new accounting system in brief. 3. What is meant by the Treasury and Comptroller Office? Write the major functions of the Treasury and Comptroller Office. 4. Describe the types of audit with their major objectives.  214 Office Management and Accountancy

8 JOURNAL VOUCHER Chapter Learning Objectives After studying this chapter, the readers will be able to :  define journal voucher and state its importance and advantages.  draw the specimen of journal voucher under AGF No. 10.  prepare journal voucher for general, advance and miscellaneous transactions under the prescribed format. Introduction The financial transactions of government offices are recorded under double entry concept of accounting. They should be recorded first in a primary document journal voucher and then they are posted into respective ledger accounts. Thus, journal is the book of original entry in government offices. The journal voucher is prepared under the prescribed format of AGF No 10. There are different types of transactions in government offices such as general or budgeted transactions, advance transactions and miscellaneous transactions. All the financial transactions should be recorded in journal voucher under the double entry concept by applying the rules of debit and credit. It facilitates for preparation of various ledger accounts. Journal Voucher 215

Concept and definition Under new accounting system of government of Nepal, every operating level office should keep the record of financial transactions in systematic and scientific manner. All the financial transactions are primarily recorded under the format prescribed by the Office of the Auditor General which is called journal voucher. It is the primary recording of operating level government offices. In government offices, every financial transactions are recorded first in journal voucher and then posted into respective ledger accounts. Journal vouchers are prepared both in operating level offices and central level offices. It is prepared under the principle of double entry system of accounting. Journal voucher is prepared using the forms prescribed by the Office of the Auditor General called AGF No. 10. Journal voucher is the primary document of government offices which is used to keep the record of financial transactions in systematic manner as per financial rules and provisions under the prescribed format of A.G.F. no 10. Short Notes to Remember (SNR 8.1)  Journal voucher is also called goswara voucher.  It is prepared under the principle of double entry system of accounting.  It shows the accounts debited and credited along with the amounts.  Separate journal voucher should be prepared for each financial transaction of government office.  It is supported with a brief explanation of transaction which is known as narration.  It is prepared on the basis of bill, receipt, decision and order of payments etc.  The full form of AGF No. is Auditor General Form Number. Specimen of journal voucher The specimen of journal voucher as prescribed by the Office of the Auditor General is as follows: Code No. Particulars Government of Nepal Debit Rs. AGF No.10 (a)…………..Office / Department / Ministry J.V. No…….(b) Date:……….(c) Journal Voucher Credit Rs. L.F. B.H. No. (d) (e) (f) (g) (h) (i) 216 Office Management and Accountancy

Receipt No……………………… Cheque No…………....… Amount received…………….… (j) Amount of cheque ……... (k) Submitted by…………………… Approved by…………..... (m) Designation…………………….. (l) Designation…………...… Date…………………………....... Date…………………....… The above specimen of journal voucher contains the following information: a) Name of office, department or ministry which prepares the journal voucher is written. b) The serial number of journal voucher from the beginning of current fiscal year is mentioned. c) Date of preparing the journal voucher is recorded. d) The code number or reference number is written which may be bill number, order number, circular number etc. e) Name of the accounts debited and credited along with short narration is mentioned. f) Page number of ledger account in which the transaction posted is mentioned. g) The budget expenditure head number of the transaction is written. h) Debit amount of a transaction is recorded. i) Credit amount of a transaction is recorded. j) The receipt number of the amount received along with the amount in words is written. k) Cheque number and the amount of cheque is mentioned while making the payment through cheque. l) Signature and designation of person preparing the journal voucher and date of submission is mentioned. m) Signature and designation of person approving the journal voucher and date of approval is written. Importance or advantages of journal voucher The importance or advantages of journal voucher can be mentioned on the following points:  It keeps the systematic and chronological recording of financial transactions of government offices.  It provides the information about debited and credited accounts along with the amounts.  It acts as a basis for preparation of various accounts, statements and reports.  It serves as a proof of every financial transaction for auditing and reporting the financial information. Journal Voucher 217

 It makes the accounting personnel more responsible and accountable for keeping record.  It facilitates the smooth functioning of financial administration as it provides systematic, complete and chronological record of every financial transaction of government offices.  It helps to detect and rectify the errors which are committed in recording and posting. Rules of debit and credit The new accounting system of government of Nepal is based upon the principle of double entry accounting system. Thus, the journal voucher is also prepared considering the dual aspect of each financial transaction. The rules of debit and credit under different bases are as follows: On the basis of types of account Personal account Debit the receiver Credit the giver Real account Debit what comes in Credit what goes out Nominal account Debit all losses and expenses Debit all losses and expenses On the basis of nature of transactions Debit Credit Increase in assets, losses and expenses Credit Decrease in assets, losses and expenses Debit Increase in capital, liabilities, gains and incomes Decrease in capital, liabilities, gains and incomes Types of journal voucher Journal voucher should be prepared for different types of financial transactions which take place in government offices. On the basis of nature of transactions, the journal voucher to be prepared by operating level government offices can be classified into following three types: a. General journal voucher b. Advance journal voucher c. Miscellaneous journal voucher 218 Office Management and Accountancy

General journal voucher The journal voucher which is prepared for the budget expenditure of government office is called general journal voucher. While purchasing goods or making payment on any budget head, operating level government offices prepare this type of voucher. The examples of budget head are salary, furniture, rent etc. While preparing general journal voucher, the word B.E. should be mentioned before the item of expenditure like B.E. Salary, B.E. Rent, B.E. Furniture etc. The rule for preparing general journal voucher is as under: Journal Voucher Date: ……………….. Date Particulars L.F. B.H.No. Debit Rs. Credit Rs. ××× ××× Dr. B.E. (Name of the budget head) Cr. Nepal Rastra Bank/Cash (Being payment made for…………..) Short Notes to Remember (SNR 8.2)  All the payments of governments offices are assumed to be made through Nepal Rastra Bank and thus Nepal Rastra Bank is to be credited.  If the government office has opened account in any other bank, same bank should be credited instead of Nepal Rastra Bank.  If cash paid in any budget head instead of issuing cheque, cash account should be credited instead of bank.  The word B.E. must be mentioned in general journal voucher as it is related to budget expenditure. Ill-1 2074-04-07 District Education Office, Tanahun purchased office stationery and materials for Rs. 10,000 and paid through cheque No. 13590. Required: Journal voucher Solution: Government of Nepal AGF No.10 District Education Office, Tanahun J.V. No 1 Journal Voucher Date: 2074-04-07 Code Particulars L.F. B.H.No. Debit Rs. Credit Rs. No. 10,000 10,000 Dr. B.E. Office related expenses 22311 10,000 Cr. Nepal Rastra Bank (Being office materials purchased and paid through cheque) 10,000 Receipt no……………………… Cheque no.: 13590 Amount received……………… Amount of cheque: Rupees Ten thousand Submitted by: Muna Approved by: Sony Post: Accountant Post: Office Chief Date: 2074-04-07 Date: 2074-04-07 Journal Voucher 219

Ill-2 Prepare journal vouchers for the following transactions: a) 2074-05-03 Krishna Furniture Industry was paid Rs. 25,000 for furniture b) 2074-05-30 purchase through cheque No. 05981. c) 2074-06-04 d) 2074-06-10 Telephone charge Rs. 4,000 was paid to Nepal Telecom by cheque No. 05989. Issued a cheque for Rs. 12,000 for purchase of uniform to military. Purchased machinery for Rs. 50,000 and paid by cheque. Solution: Journal Voucher Date:2074-05-03 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Furniture 29311 25,000 Cr. Nepal Rastra Bank (Being cheque issued to Krishna Furniture Industry 25,000 for purchase of furniture) b) Journal Voucher Date:2074-05-30 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Communication charge 22112 4,000 Cr. Nepal Rastra Bank (Being telephone charges paid by cheque) 4,000 c) Journal Voucher Date:2074-06-04 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Uniform 21121 12,000 Cr. Nepal Rastra Bank 12,000 (Being cheque issued for purchase of uniform to military) d) Journal Voucher Date:2074-06-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 29511 Dr. B.E. Machinery and equipment 50,000 Cr. Nepal Rastra Bank (Being cheque issued for purchase of machinery) 50,000 Advance journal voucher Advance is an amount paid or given to any person or organization before receiving goods or service. The payment made as advance in any budget head is not an actual expenditure until its clearance. However, it should be recorded properly in the books of account. The journal voucher relating to advance should be prepared twice as follows: 220 Office Management and Accountancy

 At the time of giving advance  At the time of clearing advance Journal voucher at the time of giving advance When an advance amount is provided to any staff or organization for making expenditure on any budget head, the person or party receiving advance amount with related budget head should be debited and Nepal Rastra Bank/cash should be credited. The rule of preparing such journal voucher is as follows: Journal Voucher Date:……............…… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Post, Name………….advance ××× ××× Cr. Nepal Rastra Bank (Being advance given to……. for…………) Short Notes to Remember (SNR 8.3)  Since the advance payment is not an actual expenditure until its clearance, the word B.E. must not be used in journal voucher. Ill-3 2074-04-19 District Health Office, Jumla issued a cheque numbered 13457 to the Section Officer Mr. Shishir Ojha for Rs. 15,000 as an advance for purchase of machinery. Required: Journal voucher Solution: Government of Nepal AGF No.10 District Health Office, Jumla J.V. No.1 Journal Voucher Date:2074-04-19 Code No. Particulars L.F. B.H.No. Debit Credit Rs. Rs. Dr. Section Officer Mr. Shishir Ojha Machinery and equipment advance 29511 15,000 Cr. Nepal Rastra Bank 15,000 (Being cheque issued to Section Officer Mr. Shishir Ojha as an advance for purchase of machinery) 15,000 15,000 Receipt no……………………… Cheque no:13457 Amount received……………… Cheque amount: Fifteen thousand rupees Submitted by: Anjana Bogati Approved by: Supriya Basnet Post: Accountant Post: Office Chief Date: 2074-04-19 Date : 2074-04-19 Journal Voucher 221

Ill-4 Prepare journal vouchers for the following transactions: a) 2074-05-07 Through cheque No. 57891 Rs. 10,000 was paid in advance to b) 2074-05-17 Nayab Subba Miss Rojina Gautam for purchase of furniture c) 2074-06-13 Rs. 50,000 was paid in advance to Storekeeper Mr. Ram Bahadur Thapa for purchase of computer and printer. Issued a cheque for Rs. 16,000 to Account Officer Mr. Rajan Dangal as an advance for purchase of fooding materials. Solution: Journal Voucher Date:2074-05-07 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 29311 Dr. Nayab Subba Miss Rojina Gautam 10,000 Furniture advance Cr. Nepal Rastra Bank 10,000 (Being cheque issued to Miss Rojina as an advance for purchase of furniture) b) Journal Voucher Date:2074-05-30 Debit Rs. Credit Rs. Code No. Particulars L.F. B.H.No. 29511 Dr. Storekeeper Mr. Ram Bahadur Thapa 50,000 Machinery and equipment advance Cr. Nepal Rastra Bank 50,000 (Being advance given to Mr. Thapa for purchase of computer and printer) c) Journal Voucher Date:2074-06-13 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Account Officer Mr. Rajan Dangal Food advance 21122 16,000 Cr. Nepal Rastra Bank 16,000 (Being cheque issued to Mr. Rajan Dangal as an advance for purchase of food materials) Journal voucher at the time of clearing advance An amount given to any person or organization should be cleared after completion of job or fulfillment of certain purpose. It is cleared under different conditions. Generally, the following conditions may take place for clearance of advance amount:  If the expenditure is equal to advance amount  If the expenditure is less than advance amount  If the expenditure is more than advance amount  If the whole amount of advance is returned  If the advance is cleared partially 222 Office Management and Accountancy

a. If the expenditure is equal to advance amount If the whole amount of advance is spent on particular budget head and the bill is submitted, it is called the condition of being expenditure and advance amount equal. In this condition, after the submission of expenditure bill and voucher, the journal voucher is prepared in the following way: Journal Voucher Date:........................... Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Budget head ××× Cr. Post, Name, clearance of .......... ××× advance (Being advance cleared for……….) Ill-5 Prepare journal vouchers for the following transactions: a) 2074-06-04 Issued a cheque for Rs. 20,000 to Section Officer, Mr. Jivan Adhikari as an advance for the purchase of machinery. b) 2074-06-13 Mr. Jivan Adhikari presented the bill of Rs. 20,000 after purchasing the machinery and his advance cleared. Solution: Journal Voucher Date:2074-06-4 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) Dr. Section Officer Mr. Jivan Adhikari 29511 20,000 Machinery and equipment advance Cr. Nepal Rastra Bank 20,000 (Being cheque issued to Mr. Jivan Adhikari as an advance for purchase of machinery) Journal Voucher Date:2074-06-13 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Machinery and equipment 29511 20,000 Cr. Section Officer Mr. Jivan Adhikari Machinery and equipment advance 20,000 clearance (Being Mr. Jivan Adhikari’s machinery advance cleared) b. If the expenditure is less than the advance amount Sometimes, the whole amount of advance taken may not be spent on the particular budget head. In this condition, the person or party submits the bill for actual expenditure and refunds the surplus amount in cash or through bank voucher. The rule for preparing such journal voucher is as follows: Journal Voucher 223

Journal Voucher Date:............................. Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. ××× Dr. B.E. Budget head ××× Dr. Cash/ Nepal Rastra Bank ××× Cr. Post, Name, advance clearance for….. (Being advance clearance for…………….) Ill-6 Prepare journal vouchers for the following transactions: a) 2074-07-02 An advance for Rs. 1,90,000 is given to Mr. Khanal, Section Officer through cheque for purchase of motorcycle. b) 2074-07-10 Mr. Khanal presented a bill of Rs. 1,85,000 and bank voucher of Rs. 5,000 and his advance was cleared. Solution: Journal Voucher Date:2074-07-02 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) Dr. Section Officer Mr. Khanal 29411 Vehicle advance 1,90,000 Cr. Nepal Rastra Bank 1,90,000 (Being advance given to Mr. Khanal for purchase of motorcycle) Journal Voucher Date:2074-07-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Vehicles 29411 1,85,000 Dr. Nepal Rastra Bank 5,000 Cr. Section Officer Mr. Khanal Vehicle advance clearance 1,90,000 (Being cleared Motorcycle purchase advance of Mr. Khanal by submitting bill and bank voucher ) c. If the expenditure is more than advance amount If the person or party receiving advance has spent more than the advance amount, he submits the bill of expenditure to the office. On the basis of expenditure bill, an office should make the clearance by paying excess expenditure through cheque or in cash. In this condition, the journal voucher is prepared in the following way: Journal Voucher Date:............................. Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Budget head ××× Cr. Post, Name, advance clearance for…….. ××× Cr. Nepal Rastra Bank ××× (Being advance of…….for…….cleared…..…) 224 Office Management and Accountancy

Ill-7 Prepare journal vouchers for the following transactions: a) 2074-06-19 An advance for Rs. 19,000 is given to Account Officer Mr. Sohan, through cheque for purchase of furniture. b) 2074-06-25 Mr. Sohan presented a bill of Rs. 20,000 and his advance cleared by issuing cheque for the insufficient amount. a) Journal Voucher Date:2074-06-19 Code No. Debit Rs. Credit Rs. Particulars L.F. B.H.No. Dr. Account Officer Mr. Sohan 29311 Furniture advance 19,000 Cr. Nepal Rastra Bank (Being advance given to Account Officer 19,000 Mr. Sohan for purchase of furniture) b) Journal Voucher Date:2074-06-25 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Furniture 29311 20,000 Cr. Account Officer Mr. Sohan Furniture advance clearance 19,000 Cr. Nepal Rastra Bank 1,000 (Being Mr. Sohan’s advance cleared and reimbursement made to him for excess expenditure) d. If the whole amount of advance is returned Sometimes, the person or party receiving advance may fail to make the expenditure. In this condition, he/she should make the advance cleared by refunding such amount in cash or depositing it into the bank. In this case, the journal voucher is prepared in the following way: Journal Voucher Date:................... Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Cash/Nepal Rastra Bank ××× ××× Cr. Post, Name, clearance of .......... advance (Being advance cleared for……….) Ill-8 Prepare journal vouchers for the following transactions: a) 2074-05-10 Issued a cheque for Rs. 9,000 to Section Officer, Mrs. Manju Baniya as an advance for travelling expenses. b) 2074-05-13 Section Officer, Mrs. Manju Baniya returned advance through bank voucher due to postponement of her travelling programme and her advance cleared. Journal Voucher 225

a) Journal Voucher Date:2074-05-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 22612 Dr. Section Officer Mrs. Manju Baniya 9,000 travelling expenses advance Cr. Nepal Rastra Bank 9,000 (Being travelling expenses advance given to Section Officer Mrs. Manju Baniya) b) Journal Voucher Date:2074-05-13 Code No. Debit Rs. Credit Rs. Particulars L.F. B.H.No. 9,000 Cr. Nepal Rastra Bank Cr. Section Officer Mrs. Manju Baniya 9,000 travelling expenses advance clearance (Being Section Officer Mrs. Manju Baniya’s travelling expenses advance cleared) e. If the advance is cleared partially If the amount of advance taken by staff is cleared on different installments due to specific reason, it is called partial clearance of advance. It is the most common in all government offices. In this condition, the amount for which the request is made for clearance is debited with the related head and head of advance with the person or party’s name is credited. It is shown below: Journal Voucher Date:..................... Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. ××× Dr. B.E. Budget head Cr. Post, Name, partial clearance of…… advance ××× (Being partial advance cleared for………..) Ill-9 Prepare journal vouchers for the following transactions: a) 2074-07-10 Issued a cheque for Rs. 20,000 to Mr. Rohit Sharma, an Accountant as an advance for purchase of office furniture. b) 2074-07-21 Mr. Rohit presented a bill of Rs. 5,000 and his advance cleared partially. Solution: Journal Voucher Date:2074-07-10 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 29311 Dr. Accountant Mr. Rohit Sharma 20,000 Furniture advance Cr. Nepal Rastra Bank 20,000 (Being cheque issued to Mr. Sharma as an advance for purchase of office furniture) 226 Office Management and Accountancy

b) Journal Voucher Date:2074-07-21 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Furniture 29311 5,000 Cr. Accountant Mr. Rohit Sharma Furniture advance clearance` 5,000 (Being Mr. Sharma’s advance cleared partially on the basis of statement submitted by him) Miscellaneous journal voucher There are various transactions other than general and advance transactions. Such transactions are called miscellaneous transactions. The journal vouchers prepared for such transactions are called miscellaneous journal vouchers. Following are some miscellaneous transactions: a. Initial imprest fund b. Budget release c. Petty cash fund d. Salary distribution e. Loan f. Transfer of budget g. Security deposit h. Rectification of error Initial imprest fund The fund which is provided to the government offices at the beginning of fiscal year to meet the expenditure of shrawan is called initial imprest fund. Generally, the government provides this fund equal to one sixth of last year’s total budget expenditure. It is also called revolving fund or preliminary fund or current fund. Since the budget for operating level offices would not have been allocated at the beginning of fiscal year, it becomes difficult to run the administrative activities of government offices. This requirement is fulfilled by creating imprest fund. After allocation of annual budget, it is adjusted accordingly with the next budget release of the concerned office. The rule for preparing journal voucher for initial imprest fund is given below: Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank ××× ××× Cr. Initial imprest fund (Being initial imprest fund received through bank transfer) Ill-10 2074-04-01 District Education Office Palpa received an initial imprest fund equal to one sixth of total budget expenditure of last fiscal year Rs. 18,00,000. Journal Voucher 227

Required: Journal voucher Journal Voucher Date:2074-04-01 Solution: Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 3,00,000 3,00,000 Dr. Nepal Rastra Bank Cr. Initial imprest fund (Being bank order received for initial imprest fund release) Budget release Under the present system of government, all operating level offices receive the budget on monthly basis on the basis of expenditure of last month which is called budget release. In order to get the budget released, it needs to submit the required documents to the District Treasury and Comptroller Office. Following are the rules for preparing journal voucher for budget release under different conditions: a. If the amount of budget release order and bank order is equal Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank ××× ××× Cr. Budget release (Being budget release order and bank order received for the actual expenditure of last month) Ill-11 2074-05-02 Received bank order and budget release order for Rs. 2,60,000 for the actual expenditure of last month. Required: Journal voucher Solution: Journal Voucher Date:2073-05-02 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 2,60,000 Cr. Budget release (Being bank order and budget release order 2,60,000 received for actual expenditure of last month) b. If the amount of bank order is more than the amount of budget release order Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank ××× ××× Cr. Budget release ××× Cr. Revolving fund (Being budget release order and bank order received for the actual expenditure of last month) 228 Office Management and Accountancy

Ill-12 2074-07-02 Bank order of Rs. 6,00,000 received for the reimbursement of revolving fund of Rs. 1,50,000 and budget release order of Rs. 4,50,000. Required: Journal voucher Solution: Journal Voucher Date:2074-07-02 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 6,00,000 Cr. Budget release Cr. Revolving fund 4,50,000 (Being bank order and budget release order 1,50,000 received for actual expenditure of last month) c. If the amount of bank order is less than the amount of budget release order Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank Dr. Revolving fund ××× ××× Cr. Budger release ××× (Being budget release order and bank order received for the actual expenditure of last month) IlI-13 2074-06-01 Received a bank order for Rs. 3,00,000 and budget release order for Rs. 3,50,000 for expenditure of Bhadra. Required: Journal voucher Journal Voucher Date:2073-06-01 Solution: Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 3,00,000 Dr. Revolving fund 50,000 Cr. Budget release (Being bank order and budget release order 3,50,000 received) Petty cash fund Under new accounting system of government of Nepal, all the transactions should be performed through bank. However, it becomes difficult and impracticable to issue cheque for small payment such as refreshment, newspaper, taxi fare etc. Thus to facilitate such payment, a fund of certain amount is created which is called petty cash Journal Voucher 229

fund. It is created at the beginning of fiscal year and the expenditure made from this fund. The journal vouchers relating to petty cash fund are prepared twice i.e. at the time of establishment of petty cash fund and at the time of reimbursement of petty cash fund. The rules for preparing journal voucher in both cases are given below: a. When petty cash fund is established Date:………… Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Petty cash fund ××× ××× Cr. Nepal Rastra Bank (Being petty cash fund established) Ill-14 2074-04-07 Issued a cheque of Rs. 2,000 for establishment of petty cash fund in favour of Junior Accountant, Mr. Bipin Sharma. Required: Journal voucher Solution: Journal Voucher Date:2074-04-07 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Petty cash fund 2,000 Cr. Nepal Rastra Bank 2,000 (Being petty cash fund established in favour of Junior Accountant Mr. Bipin Sharma) b. When reimbursement is made for the petty cash expenses Date:………… Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. (Budget head) ××× ××× Dr. B.E. (Budget head) Cr. Nepal Rastra Bank ××× (Being reimbursement of petty cash expenses made) Ill-15 2074-05-03 A cheque was issued for reimbursement of the following expenditures made out of petty cash fund. Wages Rs. 260 Repair and maintenance Rs. 310 Taxi fare Rs. 250 Water supply charges Rs. 260 Required: Journal voucher 230 Office Management and Accountancy

Solution: Journal Voucher Date: 2074-05-03 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 1,080 Dr. B.E. Salary 21111 260 Dr. B.E. Repair and maintenance 22212 310 Dr. B.E. Office expenses 22311 250 Dr. B.E. Water supply and electricity charges 22111 260 Cr. Nepal Rastra Bank (Being petty cash expenses reimbursed through cheque) Salary distribution In government offices salary of the staffs is distributed after necessary deductions like provident fund, income tax, citizen investment fund, provident fund loan etc. Later, the deducted amounts are deposited into concerned office. Any uncleared amount of advance of any employee may also be adjusted on the request. An introduction to each type of deduction and treatment in journal voucher is explained below: Employee provident fund Employee provided fund is an amount deducted from the monthly salary of the government permanent employees. While distributing salary, 10% of their salary is deducted as provident fund and same amount is contributed by the government. Then the total sums are deposited into provident fund offices and refunded to the employee after their retirement. Income tax Income tax is the amount of tax deducted at source by the government from the taxable income of an employee. The income tax act has given certain exemption limit of income for tax purpose. Later, the deducted amount of tax should be deposited into tax office by issuing cheque. Citizen investment fund Citizen investment fund is a recently introduced voluntary deduction to be made from salary of staffs. If it is applied, the government office deducts certain sum voluntarily from employee’s monthly salary and deposits into a fund. It can be withdrawn after certain period or whenever required. Provident fund loan It is the facility provided to the government employees to take loan from their provident fund deposit amount. Such loan can be repaid in installment basis by making deduction from monthly salary of an employee. The journal voucher to be prepared at the time of distributing salary and depositing the deducted amounts are given below: Journal Voucher 231

a. While distributing salary Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. B.H.No. Dr. B.E. Salary ××× ××× Dr. B.E. ................... Allowance (If any) ××× ××× Cr. Provident fund ××× Cr. Income tax ××× Cr. Citizen investment fund ××× Cr. Provident fund loan ××× ××× Cr. Tejarath sapati / Personnel loan Cr. Clearance of …….advance (If any) Cr. Nepal Rastra Bank (Being salary distributed after deducting………….) b. While depositing the deducted amounts Journal Voucher Date:………… Code No. Particulars L.F. Debit Rs. Credit Rs. Dr. Provident fund ××× ××× Dr. Citizen investment fund ××× Dr. Income tax ××× Dr. Provident fund loan ××× Dr. Tejarath sapati/Personnel loan ××× Cr. Nepal Rastra Bank (Being deposited the deducted items into account of concerned office) Alternatively, Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Provident fund ××× ××× Cr. Nepal Rastra Bank (Being deposited the provident fund into concerned office) Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Income tax ××× ××× Cr. Nepal Rastra Bank (Being deposited the income tax into concerned office) Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Provident fund loan ××× ××× Cr. Nepal Rastra Bank (Being deposited the provident fund loan into concerned office) 232 Office Management and Accountancy

Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Code No. Dr. Citizen investment fund ××× ××× Cr. Nepal Rastra Bank (Being citizen investment fund deposited in concerned office) Journal Voucher Date:………… Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Tejarath sapati Cr. Nepal Rastra Bank ××× ××× (Being deposited the tejarath sapati into concerned office) Short Notes to Remember (SNR 8.4)  The amount of salary to be written in B.E. includes basic salary and employee’s contribution to provident fund.  Provident fund is not deducted from the amount of any allowance.  The deductions made for clearance of advance in any budget head is not deposited into the account.  Practically, if the different cheques are issued for deposit, the journal vouchersl should be perased separately as shown above. Ill-16 2074-04-30 Out of total salary Rs. 55,000, distributed after deducting employee provident fund Rs. 10,000, provident fund loan Rs. 13,000, citizen investment fund Rs. 9,000 and income tax Rs. 1,000. The deducted amounts were deposited into concerned offices by cheque on the following day. Required: Journal vouchers Solution: Journal Voucher Date:2073-04-30 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Salary 21111 55,000 Cr. Provident fund Cr. Provident fund loan 10,000 Cr. Citizen investment fund Cr. Income tax 13,000 Cr. Nepal Rastra Bank (Being cheque issued for distribution of salary) 9,000 1,000 22,000 Journal Voucher Date:2073-04-31 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Provident fund 10,000 Dr. Provident fund loan 13,000 Dr. Citizen investment fund 9,000 Dr. Income tax 1,000 Cr. Nepal Rastra Bank (Being deducted amount deposited into concerned 33,000 offices by cheque) Journal Voucher 233

Alternatively, Journal Voucher Date:2074-04-31 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Provident fund B.H.No. 10,000 10,000 Cr. Nepal Rastra Bank B.H.No. (Being deposited the deduction of provident fund B.H.No. into concerned office by cheque) Journal Voucher Date:2074-04-31 Debit Rs. Credit Rs. Code No. Particulars L.F. Dr. Provident fund loan 13,000 Cr. Nepal Rastra Bank 13,000 (Being deposited the deduction of provident fund loan into concerned office by cheque) Journal Voucher Date:2074-04-31 Code No. Particulars L.F. Debit Rs. Credit Rs. Dr. Citizen investment fund 9,000 9,000 Cr. Nepal Rastra Bank (Being deposited the deduction of citizen investment fund into concerned office by cheque) Journal Voucher Date:2074-04-31 Code No. Particulars L.F. Debit Rs. Credit Rs. Dr. Income tax 1,000 1,000 Cr. Nepal Rastra Bank (Being deposited the deduction of income tax into concerned office by cheque) Loan If the budget release received remains insufficient or becomes delay in getting budget release, the government offices may take loan from another office. Likewise, an office may provide loan to another office. Such transactions should be done with the approval of the Treasury and Comptroller’s Office. The journal vouchers for receiving and paying loan amount are as follows: a. While receiving loan Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank ××× ××× Cr. Loan account of………..office (Being loan received from ………….office) 234 Office Management and Accountancy

b. While repaying loan Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Loan account of……..............…office ××× ××× Cr. Nepal Rastra Bank (Being loan repaid to…................…office) Ill-17 Following transactions are given to you: a) 2074-04-01 District Health Office, Mugu received the loan of Rs. 1,00,000 from District Education Office through bank. b) 2074-04-15 District Health Office, Mugu repaid the loan amount Rs. 1,00,000 to District Education Office through cheque. Required: Journal voucher Solution: a) Journal Voucher Date:2074-04-01 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 1,00,000 Cr. District Education Office loan account (Being loan received from District Education Office) 1,00,000 b) Journal Voucher Date:2074-04-15 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 1,00,000 1,00,000 Dr. District Education Office loan account Cr. Nepal Rastra Bank (Being loan repaid to District Education Office through cheque) Transfer of budget Sometimes, there may be insufficient budget in one budget head and surplus amount in another head. In such case, the surplus budget from one head can be transferred to the another budget head in which there is shortage, which is known as transfer of budget. It should be done with the approval of the Ministry of Finance. Budget transfer can be made in the following two ways: a. Inter-head transfer of budget aaa It is the way of transferring budget of one head to another head within same office. It is also known as intra-office budget transfer. For example, the transfer of budget from budget head salary to the head dearness allowance. The following journal voucher is prepared for inter-head transfer of budget. Journal Voucher 235

Journal Voucher Date:………… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.H……..(Budget head from which the budget has ××× been transferred) Cr. B.H………..(Budget head to which the ××× budget has been transferred) (Being budget transferred from budget head…….. to budget head………) Ill-18 2074-06-29 District Health Office, Tanahun transferred Rs. 20,000 from the budget head machinery to salary. Required: Journal voucher Solution: Journal Voucher Date:2074-06-29 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.A. Machinery and equipment Cr. B.A. Salary 29511 20,000 (Being transferred the budget amount from the budget head machinery to salary) 21111 20,000 b. Inter-office transfer of budget b.b It is the way of transferring budget of particular head from one office to another office. Such transfer is made after the approval of the central level office. The following journal vouchers are prepared in relation to inter-office transfer of budget.  While receiving the budget transfer Date:…….....…… Journal Voucher B.H.No. Code No. Particulars L.F. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank ××× ××× Cr. Budget release (Being budget transfer received from………… )  While providing the budget transfer Journal Voucher Date:…...........…… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Budget release ××× ××× Cr. Nepal Rastra Bank (Being budget transfer provided to……. ) 236 Office Management and Accountancy

Ill-19 Following transactions are given to you: a) 2074-05-02 District Education Office, Kathmandu received the budget transfer of Rs.75,000 from District Agriculture Office, Kathmandu with the approval of concerned authority. b) 2074-05-10 District Irrigation Office, Kathmandu provided the budget transfer of Rs.1,00,000 to District Land Revenue Office, Kathmandu through cheque no.238976 Required: Journal voucher Solution: a) Journal Voucher Date:2074-05-02 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 75000 75000 Cr. Budget release (Being transfer of budget received from District Agriculture office) b) Journal Voucher Date:2074-05-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Budget release 1,00,000 100,000 Cr. Nepal Rastra Bank (Being transfer of budget provided to District Land Revenue Office through cheque) Security deposit Security deposit is the amount to be deposited by the contractor as per rule in developmental and constructional work. It also refers to the amount deposited by the supplier for supplying goods or services. The certain percentage of total value of contract amount or work should be deposited as security deposit. Such deposit should be refunded to the concerned person after completion of the particular job. The journal vouchers to be prepared for security deposit are as follows: a. While receiving the security deposit and contract tax Journal Voucher Date:…........…… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank Cr. Security deposit a/c of......(Name of contractor) ××× ××× (Being security deposit received from.....) Journal Voucher 237

b. While paying the amount of bill after deducting security deposit Journal Voucher Date:….......…… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. B.E. Budget head Cr. Security deposit ××× Cr. Contract tax (if any) ××× Cr. NEPAl Rastra Bank ××× (Being payment made to ............ after deducting ××× security deposit and contract tax) c. While refunding the security deposit Date:….....…… Journal Voucher Code No. Particulars L.F. B.H. No. Debit Rs. Credit Rs. Dr. Security deposit a/c of..... (Name of contractor) ××× ××× Cr. NEPal Rastra Bank (Being security deposit amount refunded to contractor) Ill-20 Prepare journal vouchers from the following transactions: a) 2074-04-03 District Health Office, Rasuwa received security deposit amount for construction of office building Rs. 50,000 and Rs. 60,000 through bank from the contractors Lama Construction Company and Himal Construction Company respectively. b) 2074-11-30 Issued a cheque of Rs. 2,70,000 in favour of Lama Construction Company for payment of building construction after deducting 10% security deposit. c) 2074-12-10 On completion of construction of office building, security deposit amount of Rs. 80,000 refunded to Lama Construction Company through cheque. Solution: Journal Voucher Date:2074-04-03 a) Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Nepal Rastra Bank 1,10,000 Cr. Security deposit a/c of Lama Construction Company 50,000 Cr. Security deposit a/c of Himal Construction Company 60,000 (Being security deposit amount received from Lama Construction Company and Himal Construction Company) 238 Office Management and Accountancy

b) Journal Voucher Date:2074-11-30 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 29221 3,00,000 Dr. B.E. Building construction 30,000 Cr. Security deposit 2,70,000 Cr. Nepal Rastra Bank (Being cheque issued to the contractor Lama Construction Company for construction of office building) c) Journal Voucher Date:2074-12-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. Dr. Security deposit a/c of Lama Construction 80,000 Company 80,000 Cr. Nepal Rastra Bank (Being security deposit amount refunded to Lama Construction Company) Rectification of errors Errors are the mistakes committed in the books of account knowingly or unknowingly. After identification of errors, they must be rectified through journal voucher. For rectification of wrong entry in government accounting, the journal vouchers are prepared in the following way: Journal Voucher Date:…… Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. ××× Ill-21 Dr. B.E. Budget head (The head which has to be debited) ××× Cr. B.E. Budget head (The head which has wrongly been debited) 2074-03-19 Rs. 5,000 paid for repair expense was wrongly debited to salary account and now rectified. Required: Journal voucher Solution: Journal Voucher Date:2074-03-19 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. 5,000 5,000 Dr. B.E. Repair and maintenance 22212 Cr. B.E. Salary 21111 (Being expenses paid for repair was wrongly debited to salary account now rectified) Journal Voucher 239

REVIEW ILLUSTRATIONS Ill-22 Prepare journal vouchers from the following transactions: a) 2074-06-05 Issued a cheque of Rs. 50,000 for purchase of machinery. b) 2074-06-10 Issued a cheque of Rs. 10,000 for purchase of furniture. c) 2074-06-13 Issued a cheque of Rs. 4,000 for purchase of dress. d) 2074-06-25 Payment made by cheque Rs. 20,000 for house rent. e) 2074-06-27 Payment made by cheque Rs. 1,800 for water supply and electricity charges. f) 2074-06-30 Purchased a motor car for Rs. 10,00,000 and paid by cheque. Solution: Journal Voucher Date:2074-06-05 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 29511 50,000 50,000 Dr. B.E. Machinery and equipment Cr. Nepal Rastra Bank B.H.No. (Being a cheque issued for purchase of machinery) 29311 Journal Voucher B.H.No. Date:2074-06-10 21121 Code No. Particulars L.F. Debit Rs. Credit Rs. b) B.H.No. 10,000 10,000 Dr. B.E. Furniture 22121 Cr. Nepal Rastra Bank (Being furniture purchased and payment made by B.H.No. cheque) 22111 Journal Voucher Date:2074-06-13 Code No. Particulars L.F. Debit Rs. Credit Rs. c) 4,000 4,000 Dr. B.E. Uniform Cr. Nepal Rastra Bank (Being cheque issued for purchase of dress materials) Journal Voucher Date: 2074-06-25 Code No. Particulars L.F. Debit Rs. Credit Rs. d) 20,000 20,000 Dr. B.E. House rent Cr. Nepal Rastra Bank (Being rent paid by cheque) Journal Voucher Date:2074-06-27 Code No. Particulars L.F. Debit Rs. Credit Rs. e) 1,800 1,800 Dr. B.E. Water supply and electricity charges Cr. Nepal Rastra Bank (Being water supply and electricity charges paid by cheque) 240 Office Management and Accountancy

Journal Voucher Date:2074-06-30 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. f) Dr. B.E. Vehicles 29411 10,00,000 Cr. Nepal Rastra Bank (Being cheque issued for purchase of motor car) 10,00,000 Ill-23 Prepare journal vouchers from the following transactions: a) 2074-04-03 Issued a cheque for Rs. 40,000 to Kharidar Mr. Krishna Karki as an advance for purchase of furniture. b) 2074-04-09 Issued a cheque in favour of Account Officer Miss Kajal of Rs. 20,000 as an advance for uniform. c) 2074-04-20 Issued a cheque in favour of the house owner Mrs. Sarita for d) 2074-05-22 coming month Rs. 14,000. Solution: Opened L/C of Rs. 12,00,000 in the name of Toyota Company Japan for purchase of car for office use. Journal Voucher Date:2074-04-03 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 29311 Dr. Kharidar Krishna Karki B.H.No. Furniture advance 21121 40,000 Code No. b) Cr. Nepal Rastra Bank B.H.No. 40,000 22121 (Being cheque issued to Kharidar Krishna Karki as B.H.No. Code No. an advance for purchase of furniture) 29411 c) Journal Voucher Date:2074-04-09 Particulars L.F. Debit Rs. Credit Rs. Code No. d) Dr. Account Officer Miss Kajal Uniform advance 20,000 Cr. Nepal Rastra Bank 20,000 (Being uniform purchase advance given to Account Officer Miss Kajal) Journal Voucher Date:2074-04-20 Particulars L.F. Debit Rs. Credit Rs. Dr. House owner Mrs. Sarita House rent advance 14,000 Cr. Nepal Rastra Bank 14,000 (Being cheque issued to house owner Mrs. Sarita for rent advance) Journal Voucher Date:2074-05-22 Particulars L.F. Debit Rs. Credit Rs. Dr. Toyota Company Japan 12,00,000 Vehicles advance Cr. Nepal Rastra Bank 12,00,000 (Being letter of credit opened in the name of Toyota Company Japan for purchase of car) Journal Voucher 241

Ill-24 Prepare journal vouchers from the following transactions: a) 2074-07-10 Cleared the furniture purchase advance of Kharidar, Kumar b) 2074-07-21 Shrestha of Rs. 15,000 on the basis of expenditure report. c) 2074-08-07 Miss Durga submitted the bill for Rs. 20,000 after purchasing d) 2074-08-24 computer and her advance of Rs. 25,000 is cleared after e) 2074-08-30 submitting the bank voucher for the surplus amount. Subba Mr. Harikrishna presented the dress material purchase bill Rs. 35,000 against the advance of Rs. 30,000. His advance cleared by issuing cheque for insufficient amount. Production material advance Rs. 16,000 of Mr. Ajaya was cleared against the bill for the purchase of material Rs. 14,000 and Travelling program expenses bill Rs. of Rs. 2,000. Miss Priya presented the machinery purchase bill of Rs. 10,000 and her advance was cleared partially. Solution: Journal Voucher Date:2074-07-10 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 29311 15,000 15,000 Dr. B.E. Furniture Cr. Kharidar Kumar Shrestha Furniture advance clearance (Being furniture advance of Kharidar Kumar Shrestha cleared on the basis of expenditure bill ) Journal Voucher Date:2074-07-21 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) 29511 25,000 Dr. B.E. Machinery and equipment 20,000 Dr. Nepal Rastra Bank B.H.No. 5,000 Code No. Cr. Miss Durga machinery advance clearance 21121 c) (Being computer purchase advance Miss Durga’s cleared on the basis of expenditure bill and bank voucher) Journal Voucher Date:2074-08-07 Particulars L.F. Debit Rs. Credit Rs. 35,000 Dr. B.E. Uniform 30,000 Cr. Subba Mr. Hari Krishna 5,000 Uniform advance clearance Date:2074-08-24 Cr. Nepal Rastra Bank (Being dress material advance cleared by paying for excess expenditure) Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. d) Dr. B.E. Production material and service 22521 14,000 Dr. B.E. Travelling programme expenses 22613 2,000 Cr. Mr. Ajaya advance clearance (Being advance Mr. Ajaya’s of production material 16,000 advance cleared) 242 Office Management and Accountancy

Journal Voucher Date:2074-08-30 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) 29511 10,000 10,000 Dr. B.E. Machinery and equipment Cr. Miss Priya machinery advance clearance (Being Miss Priya’s machinery purchase advance cleared partially) Ill-25 From the following transactions, prepare journal vouchers: a) 2074-04-01 District Health Office, Palpa received an initial imprest fund equal to one sixth of total budget expenditure of last b) 2074-04-02 fiscal year Rs. 24,00,000. c) 2074-04-17 Received bank order of Rs. 3,00,000 for initial revolving fund as 1 12 of the actual expenditure of last fiscal year. Received a cheque for additional revolving fund of the amount to make equal to one sixth of the fiscal year budget Rs. 18,00,000 after deducting initial revolving fund Rs. 2,10,000. d) 2074-05-03 Received budget release order and bank order for Rs. 2,00,000 e) 2074-06-01 equal to the expenditure of last month. f) 2074-07-03 Received a bank order for Rs. 4,00,000 and budget release order for the actual expenditure of Rs. 5,00,000 of previous month . Received bank order for Rs.3,00,000 and budget release order for actual expenditure of the previous month of Rs. 2,50,000 . Solution: Journal Voucher Date:2074-04-01 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 4,00,000 Dr. Nepal Rastra Bank 4,00,000 Cr. Revolving fund release (Being amount received for revolving fund release) Journal Voucher Date:2074-04-02 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) Dr. Nepal Rastra Bank 3,00,000 3,00,000 Cr. Revolving fund release (Being bank order received for initial revolving fund release) Journal Voucher Date:2074-04-17 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. c) 90,000 90,000 Dr. Nepal Rastra Bank Cr. Revolving fund release (Being bank order received for additional revolving fund release) Journal Voucher 243

Journal Voucher Date:2074-05-03 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. d) 2,00,000 2,00,000 Dr. Nepal Rastra Bank Cr. Budget release (Being bank order and budget release order received) Journal Voucher Date:2074-06-01 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) 5,00,000 Dr. Nepal Rastra Bank 4,00,000 Dr. Revolving fund release 1,00,000 Cr. Budget release (Being bank order and budget release order received) Journal Voucher Date:2074-07-03 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. f) 3,00,000 Dr. Nepal Rastra Bank 2,50,000 Cr. Budget release 50,000 Cr. Revolving fund release (Being bank order and budget release order received) Ill-26 Prepare journal vouchers from the following transactions: a) 2074-05-29 Salary distributed after deducting Rs. 12,000 for provident fund, Rs. 10,000 for provident fund loan and Rs. 1,300 for income tax out of total salary Rs. 66,000. The deducted amounts were deposited into the concerned offices on the following day. b) 2074-06-28 Out of total salary Rs. 88,000 and dearness allowance Rs. 20,000, distributed by cheque after deducting Rs.16,000 for provident fund, Rs. 12,000 for provident fund loan and Rs. 2,000 for income tax. c) 2074-07-25 Issued a cheque of Rs. 35,000 for distribution of salary for the month after deducting Rs. 10,000 for provident fund, Rs. 9,000 for Tejatath Sapati and Rs. 1,000 for income tax. d) 2074-08-29 Salary for the month Rs. 77,000 (including government contribution) and dearness allowance Rs. 25,000 were distributed after deducting provident fund Rs. 14,000 and income tax Rs. 3,000. e) 2074-10-28 Salary for the month Rs. 40,000 (excluding government contribution) was distributed after deducting provident fund as per rules including government contribution. f) 2074-07-20 Salary for the month Rs. 30,000 (excluding government contribution) and Dashain allowance Rs. 20,000 were distributed after deducting provident fund as per rules and income tax Rs. 900. The deducted amounts were deposited into concerned offices through cheque. 244 Office Management and Accountancy

Solution: Journal Voucher Date:2074-05-29 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 21111 66,000 Dr. B.E. Salary 12,000 Cr. Provident fund B.H.No. 10,000 Cr. Provident fund loan 1,300 Cr. Income tax 42,700 Cr. Nepal Rastra Bank (Being distribution of salary through cheque) Journal Voucher Date: 2074-05-30 Code No. Particulars L.F. Debit Rs. Credit Rs. 23,300 Dr. Provident fund 12,000 Dr. Provident fund loan 10,000 Dr. Income tax 1,300 Cr. Nepal Rastra Bank (Being provident fund, provident fund loan and income tax deduction were deposited into concerned offices) Journal Voucher Date:2074-06-28 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) Dr. B.E. Salary 21111 88,000 Dr. B.E. Dearness allowance 21113 20,000 Cr. Provident fund Cr. Provident fund loan 16,000 Cr. Income tax 12,000 Cr. Nepal Rastra Bank 2,000 (Being distribution of salary for the month) 78,000 Journal Voucher Date:2074-07-25 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. c) Dr. B.E. Salary 21111 55,000 Cr. Provident fund Cr. Tejarath sapati 10,000 Cr. Income tax 9,000 Cr. Nepal Rastra Bank 1,000 (Being distribution for salary the month) 35,000 Journal Voucher Date:2074-08-29 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. d) Dr. B.E. Salary 21111 77,000 Dr. B.E. Dearness allowance Cr. Provident fund 21113 25,000 Cr. Income tax Cr. Nepal Rastra Bank 14,000 (Being distribution of salary and allowance through cheque) 3,000 85,000 Journal Voucher 245

Journal Voucher Date:2074-10-28 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) 21111 44,000 Dr. B.E. Salary 8,000 Cr. Provident fund 36,000 Cr. Nepal Rastra Bank (Being salary distributed after deducting provident fund) Journal Voucher Date:2074-07-20 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. f) Dr. B.E. Salary 21111 33,000 6,000 Dr. B.E. Other allowance 21119 20,000 900 Cr. Provident fund Cr. Income tax 46,100 Cr. Nepal Rastra Bank (Being distribution of salary for the month) Journal Voucher Date:2074-07-20 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. g) 6,900 Dr. Provident fund 6,000 Dr. Income tax 900 Cr. Nepal Rastra Bank (Being provident fund deduction and income tax deposited into concerned office through cheque) Ill-27 From the following transactions, prepare journal vouchers: a) Received loan Rs. 1,00,000 from District Education Office. b) Repaid loan Rs. 25,000 to District Health Office by cheque. c) The budget of Rs. 20,000 was transferred from machinery to furniture. d) Issued a cheque of Rs. 1,000 for establishment of petty cash fund in favour of Accountant Miss Rojina. e) Issued a cheque of Rs. 800 for the reimbursement of the following petty expenses made by petty cash fund: Refreshment Rs. 120 Stationery Rs. 140 Taxi fare Rs. 270 Repair and maintenance Rs. 270 f) Amount Rs. 8,000 paid for repair and maintenance was wrongly debited to salary account and now rectified. Solution: Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) 1,00,000 1,00,000 Dr. Nepal Rastra Bank Cr. District Education Office loan a/c (Being loan received from District Education Office) 246 Office Management and Accountancy

Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) 25,000 25,000 Dr. District Health Office loan a/c Cr. Nepal Rastra Bank (Being loan repaid to District Health Office) Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. c) 20,000 20,000 Dr. B.A. Machinery and equipment 29511 Cr. B.A. Furniture 29311 (Being budget transferred from machinery to furniture) Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. d) Dr. Petty cash fund 1,000 1,000 Cr. Nepal Rastra Bank (Being a cheque issued for establishment of petty cash fund in favour of Accountant Miss Rojina) Journal Voucher Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) 800 Dr. B.E. Miscellaneous expenses 22711 120 22311 410 Dr. B.E. Office related expenses 22212 270 Code No. f) Dr. B.E. Repair and maintenance Cr. Nepal Rastra Bank (Being reimbursement of petty cash fund) Journal Voucher Particulars L.F. B.H.No. Debit Rs. Credit Rs. 8,000 8,000 Dr. B.E. Repair and maintenance 22212 Cr. B.E. Salary 21111 (Being paid for repair and maintenance was wrongly debited to salary account, now rectified) Ill-28 Prepare journal vouchers of District Education Office, Nuwakot from the following transactions: a) 2074-04-01 Received bank order letter of Rs. 2,00,000 for initial revolving fund release. b) 2074-04-06 Issued a cheque for Rs. 10,000 in favour of house owner Miss Rohini as advance rent for next two months. c) 2074-04-07 Issued a cheque of Rs. 5,000 for establishment of petty cash fund in favour of Accountant Mr. Gopal. d) 2074-04-15 Issued a cheque against the purchase of following materials: Computer and printer Rs. 58,500 Computer table Rs. 4,000 Sports material Rs. 1,500 Journal Voucher 247

e) 2074-04-29 Paid salary Rs. 90,000 for the month after deducting provident fund Rs. 15,000 and income tax Rs. 2,500. The deducted amounts were deposited into concerned office on same day. f) 2074-05-02 Bank order letter of Rs. 3,00,000 received including budget release order for expenses of last month Rs. 1,75,000 and additional revolving fund Rs. 1,25,000. g) 2074-05-04 A cheque issued for reimbursement of petty cash fund for the following expenses: Wages Rs. 400 Tea and coke Rs. 300 Electricity charges Rs. 210 h) 2074-06-03 Budget Rs. 7,000 transferred from production material to local allowance. Solution: Journal Voucher Date: 2074-04-01 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. a) Dr. Nepal Rastra Bank 2,00,000 2,00,000 Cr. Initial revolving fund release (Being bank order received for initial revolving fund release) Journal Voucher Date: 2074-04-06 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. b) Dr. House owner Miss Rohini 22121 House rent advance 10,000 Cr. Nepal Rastra Bank 10,000 (Being cheque issued to house owner Miss Rohini as advance rent for next two months) Journal Voucher Date: 2074-04-07 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. c) Dr. Petty cash fund 5,000 5,000 Cr. Nepal Rastra Bank (Being establishment of petty cash fund in favour of Accountant Mr. Gopal) Journal Voucher Date: 2074-04-15 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. d) Dr. B.E. Machinery and equipment 29511 58,500 64,000 Dr. B.E. Furniture 29311 4,000 Dr. B.E. Books and material 22313 1,500 Cr. Nepal Rastra Bank (Being cheque issued for purchase of computer, printer, computer table and sport materials) 248 Office Management and Accountancy

Journal Voucher Date: 2074-04-29 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) Dr. B.E. Salary 21111 90,000 Cr. Provident fund Cr. Income tax 15,000 Cr. Nepal Rastra Bank 2,500 (Being distribution of salary) 72,500 Journal Voucher Date: 2074-04-29 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. e) Dr. Provident fund 15,000 17,500 Dr. Income tax 2,500 Cr. Nepal Rastra Bank (Being provident fund and income tax deposited into concerned offices) Journal Voucher Date: 2074-05-02 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. f) Dr. Nepal Rastra Bank 3,00,000 Cr. Budget release 1,75,000 Cr. Revolving fund release 1,25,000 (Being bank order and budget release order received) Journal Voucher Date: 2074-05-04 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. g) Dr. B.E. Salary Dr. B.E. Miscellaneous expenditure 21111 400 Dr. B.E. Water supply and electricity charges Cr. Nepal Rastra Bank 22711 300 (Being reimbursement of petty cash fund) 22111 210 910 Journal Voucher Date: 2074-06-03 Code No. Particulars L.F. B.H.No. Debit Rs. Credit Rs. h) Dr. B.A. Production material 22521 7,000 7,000 Cr. B.A. Local allowance 21112 (Being budget transferred from production material to local allowance) Key – process of closing the accounts at the end of fiscal year. Terms – expenditure made under different budget needs. – amount received from concerned central level office for Annual closing Budget expenditure making expenditure. Budget release Journal Voucher 249

Budget transfer – act of transferring amount from one budget need to another taking approval of concerned authority. Citizen investment fund – voluntary investment made by the interested employees making deduction on monthly salary. Fiscal year – period of twelve months over which the accounts and taxes of a company or a person are calculated. Income tax – amount to be paid to the government as tax on income beyond the exemption limit. Initial imprest fund – amount received by operating level offices at the beginning of fiscal year to spend on different budget heads which is the last year’s total budget expenditure. Journal voucher – primary document used in government offices to keep the record of day to day financial transactions. Petty cash fund – fund of certain amount created by an office to pay the small amount of expenditures in cash. Provident fund – amount deducted from the basic monthly salary of permanent employees and deposited into the concerned account along with government contribution. A. Very short answer questions 1. What is meant by AGF No.10? 2. Which accounts are debited and credited while giving advance through cheque? 3. How much is the minimum amount that can be maintained under petty cash fund for central level offices? 4. Which accounts are debited and credited while receiving imprest fund through bank transfer? 5. How much percentage of basic salary is deduced as provident fund in government offices? 6. Write the budget head number of salary and furniture. B. Short answer questions 1. Define journal voucher and state its importance. 2. Mention the types of journal voucher and explain in brief about general journal voucher with example. 3. What do you mean by advance transaction? How are the advance given transactions recorded in journal voucher? Explain. 4. What do you mean by miscellaneous transactions? Mention the types of miscellaneous transactions. 5. What is meant by transfer of budget? Explain its types with example. 250 Office Management and Accountancy