Book 10 Account Final for 2077_new

c. Easy for auditing Auditing is the act of examining books of account for ascertaining the position of government offices regarding financial rules and provisions. In this regard, monthly statements provide up to date financial data and information for internal as well as final auditing. With the help of such monthly statements, an auditor may check the accounts related to budget like annual appropriation, budget release, budget expenditure and surplus amount of budget. Thus, the monthly statements help to make the act of auditing easier in government offices. d. Better evaluation of government jobs The government offices may launch various short term and long term programmes which require the proper utilization of appropriated budget. It is necessary to evaluate the performance of government offices regarding the achievement of such programme. Since the monthly statements provide the required financial information, it makes the job of evaluation easier. It also helps to evaluate the efficiency, performance and problem of each programme carried out by the government. e. Effective financial decision Monthly statements supply the various financial information related to the budget. Thus, the effective financial decision can be made on time. It helps to make the decision regarding transfer of budget, estimation and execution of budget etc. Thus, in order to make the effective financial decision, monthly statements are very important for government offices. f. Administrative tool Monthly statement is also considered as administrative tool of government offices as it helps to formulate and implement various programmes and projects. It helps to perform the day to day administrative jobs of an office. Monthly statements are also useful for planning, policy making and implementing task in an office. Thus, these statements also act as the effective tool for running financial administration. Types of monthly statements The main types of monthly statements to be prepared by operating level government offices are as follows: a) Statement of expenditure (AGF No. 13) b) Statement of outstanding advance (AGF No. 14) c) Bank reconciliation statement (AGF No. 15) d) Statement of government revenue (AGF No. 9) e) Statement of security deposit (AGF No. 19) Monthly Statements 301

Statement of expenditure Statement of expenditure is one of the important monthly statements to be prepared by operating level offices of government of Nepal. Under new accounting system, it should be prepared at the end of each month and submitted to the concerned central level office within the first week of the next month. Statement of expenditure is also called monthly expenditure report. It has two parts i.e. upper part shows the position of budget and the lower part shows the position of fund that includes bank balance, cash balance, uncleared amount of advance, actual expenditure etc. Statement of expenditure is prepared on the basis of information obtained from the bank cash book, budget sheet, advance ledger and petty cash book. It is prepared under the prescribed format of AGF No.13. The monthly statement which is prepared by each operating level offices to disclose the position of budget and position of fund is called statement of expenditure. Specimen of statement of expenditure AGF No.13 The specimen of statement of expenditure is as follows: Government of Nepal ………Office/Department/Ministry Statement of Expenditure For the month of………………… Expenditure of…… Release upto B.H. Budget Heads/ Annual Appropriation Expenditure Balance of Budget Rs. ……. Rs. Rs. No. Sub-heads Rs. upto ....... Rs. (1) (2) (7) (3) (4) (5) (6) Revolving fund balance Fund position Total release received upto………….. Rs…………….. Bank balance Rs….……….. Rs……….…… Total expenditure upto ……………….. Rs…………….. Cash in hand Rs…………… Rs…………… Outstanding (uncleared) advances Rs…………….. Total Rs………….… Actual expenditure (less uncleared advances) Rs…………….. Loan payable Date: 31st….. Date: 31st….. Loan receivable Submitted by: Mr X Designation: Assistant Accountant Approved by :Mr Y Designation: Chief Accountant Parts of statement of expenditure A statement of expenditure contains the following two parts: 1. Part showing the position of budget 2. Part showing the position of fund 302 Office Management and Accountancy

Part showing the position of budget This is the first and upper part of the statement of expenditure which discloses the position of budget. It has seven columns relating to status of the budget. The information to be mentioned in each column is given below: Column 1 In this column, the amount of budget expenditure incurred under different budget heads for the current month is mentioned. Column 2 In this column, the cumulative total of budget release received under different budget heads upto the end of current month is mentioned. Generally, the amount of budget release will be equal to the amount of budget expenditure upto the previous month. To fill up in this column, the following concept should be kept in mind. Release upto current month = Expenditure upto previous month It also records the amount of revolving fund balance which is calculated as follows: Revolving fund balance = Total imprest fund release received – Expenditure upto the previous month Column 3 In this column, budget head number of related heads where budget appropriation made is mentioned. Column 4 In this column, name of budget head i.e. salary, rent, furniture etc. is mentioned. Column 5 In this column, the amount of annual appropriation for each budget head is mentioned. Column 6 In this column, the amount of total expenditure made in each budget head upto current month is mentioned. It is calculated as follows: Total expenditure upto the end of current month = Expenditure of current month (Column 1) + Release upto the end of current month (Column 2) Column 7 In this column, the balance of budget in each budget head is shown which can be calculated as follows: Balance of budget (Column 7) = Annual appropriation of budget (Column 6) –Expenditure upto the end of current month (Column 7) Monthly Statements 303

Short Notes to Remember (SNR 11.1)  The relation of different columns under first part of the statement of expenditure can be shown as below: Column 1 + Column 2 = Column 6 Column 5 – Column 6 = Column 7 Column 6 – Column 1 = Column 2 Column 6 – Column 2 = Column 1 Part showing the position of fund The information to be mentioned in this part are as follows : a. Total revolving fund/imprest fund release received upto current month It shows the total imprest fund release till the end of current month. Generally, it may be given in problem as additional information. If not given, it can be calculated by applying the following condition: Total imprest fund release received = Total expenditure + Bank balance + Cash balance + Loan given – Loan received – Deposit received b. Total expenditures upto current month It is the amount of total expenditure shown by budget sheet up to the current month. It is found from column six of upper part of statement of expenditure. c. Un-cleared amount of advance It is determined from advance account. The information relating to un-cleared advance will be given in problem for practical purpose. It can also be determined by deducting cleared amount from advance given. d. Actual expenditure The amount of actual expenditure is determined by deducting the amount of un- cleared advance from the amount of total expenditure as follows: Actual expenditure = Total expenditures – Uncleared advance e. Bank balance It is the amount of cash balance remained at bank at the end of current month. It is determined from the bank cash book. If the amount of bank balance is not given in problem, it is determined using the following formula: Bank balance = Total imprest fund received –Total expenditure – Cash balance – Loan given+ Loan received + Deposit received f. Cash balance It is the amount of cash balance in government office at the end of current month. Sometimes, petty cash fund (Cash balance) is not given in the problem. In such case, the following formula can be applied: 304 Office Management and Accountancy

Petty cash fund or cash balance = Total imprest fund received – Total expenditure – Bank balance– Loan given + Loan received + Deposit received Short Notes to Remember (SNR 11.2)  The following condition can be applied in order to determine any of the required items in statement of expenditure: Total release–Total expenditure = Bank balance + Cash balance+ Loan receivable - Loan payable - Deposit received Ill-1 You are given the following information of District Education Office, Bhaktapur: B.H. No. Budget head / sub -head Annual budget Rs. Expenditure upto Expenditure of Ashwin Rs. Kartik Rs. 21111 Salary 2,92,500 67,500 22,500 21112 Local allowances 96,000 24,000 8,000 22311 Office related expenses 27,000 8,000 22121 House rent 1,10,000 60,000 20,000 29311 Furniture 2,40,000 75,000 20,000 Total 2,00,000 2,53,500 78,500 9,38,500 Additional information: a) Total revolving fund received Rs. 3,45,000. b) Cash in hand Rs. 500 c) Cash at bank Rs. 12,500 d) Uncleared furniture advance R s. 15,000 Required: Statement of expenditure for the month of Kartik Solution: AGF No.13 Government of Nepal District Education Office, Bhaktapur Statement of Expenditure For the month of Kartik Expenditure Release upto B.H. Budget Heads/ Annual Expenditure Balance of of Kartik Rs. Kartik Rs. No. Sub-heads Appropriation upto Kartik Rs. Budget Rs. 22,500 67,500 21111 Salary Rs. 90,000 2,02,500 8,000 24,000 21112 Local allowances 32,000 64,000 8,000 27,000 22311 Office relatedexpenses 2,92,500 35,000 75,000 20,000 60,000 22121 House rent 96,000 80,000 20,000 75,000 29311 Furniture 95,000 1,60,000 78,500 1,10,000 1,05,000 2,53,500 Revolvingfund balance 2,40,000 3,32,000 6,06,500 78,500 91,500 2,00,000 6,06,500 3,45,000 9,38,500 9,38,500 3,32,000 Monthly Statements 305

Fund position Total amount received upto Kartik Rs. 3,45,000 Bank balance Rs. 12,500 Total expenditure upto Kartik Rs. 3,32,000 Cash in hand Rs. 500 Outstanding (Uncleared) advances Total expenditure (Less uncleared advance) Rs. 13,000 Rs. 13,000 Rs 15,000 Rs. 3,17,000 Loan payable Rs……× × ×……....… (3,32,000-15,000) Loan receivable Rs……× × ×……… Submitted by:………..…………….. Designation:………………….. Date:……….............................…. Approved by :……………………… Designation:………………….. Date:…………....................… Statement of outstanding advance Sometimes, the amount of advance given to any person or party in any budget head may not have been cleared within the given date. If so, the operating level office should report it to the concerned central level offices with the help of a statement in monthly basis which is called monthly statement of outstanding advance. It is one of the important monthly statements to provide information about uncleared advance. It is prepared by each operating level office mentioning the name of person or party receiving advance, amount of advance given and reasons for unclearing advance. It is prepared on the basis of advance ledger account and bank cash book. It is prepared under the format of AGF No. 14. The financial document which is prepared to report the uncleared amount of advance, name of the party receiving advance and reasons for unclearing such advance is called statement of outstanding advance. The specimen of statement of outstanding advance is given below: Government of Nepal AGF No.14 ………Office/Department/Ministry Statement of Outstanding Advance …………… year ………………… month Date of advance given Advance given to ………….. Advance amount Reasons for unclearing advance Certified that the above statement is correct. Submitted by:………..…………….. Position:………………….. Date:…………. Approved by :……………………… Position:………………….. Date:…………… 306 Office Management and Accountancy

Ill-2 On 2074-07-23 Section Officer Mr. Dinesh Kumal was given advance through cheque No. 34569 for purchase of furniture Rs. 10,000. The advance amount was not cleared till the end of Kartik. Required: Statement of outstanding advance (AGF No 14) Solution: Government of Nepal ………Office AGF No.14 Statement of Outstanding Advance Reasons for unclearing advance Date of advance given Name of receiver Amount Rs. 23rdKartik 2074 Mr. Dinesh Kumal 10,000 Total 10,000 Certified that the above statement is correct. Submitted by:………..…………….. Position:………………….. Date:…………. Approved by :……………………… Position:………………….. Date:…………… Short Notes to Remember (SNR 11.3)  The amount shown in statement of outstanding advance should be equal to the amount of outstanding advance shown in the statement of expenditure. Bank reconciliation statement Under new accounting system of government, all the financial transactions of government offices are operated through bank. It means cash deposit and withdrawal or payments are made through bank. For this, every office should open bank account for performing such financial transactions. An office keeps the record of such financial transactions by maintaining a book called bank cash book. The bank also maintains the record on a book which is known as pass book or bank statement. The bank balance shown by bank cash book and bank balance shown by bank statement should be equal at the given date. Sometimes, the bank balance shown by bank cash book and bank statement may differ due to various reasons. In order to know the reasons of having difference in bank balance between two books, a statement is prepared which is known as bank reconciliation statement. Hence, it can be defined as the statement prepared by operating level offices showing the reasons of difference in bank balance shown by bank cash book and bank statement or pass book. It is prepared at the end of each month and submitted to the concerned central level offices. It is prepared under the format of AGF No. 15. Following are the reasons of having differences in bank balance shown by bank cash book and bank statement. a) Cheque issued but not presented into bank . Monthly Statements 307

b) Cheque deposited into bank but not credited or recorded into pass book or statement c) Any expenses debited in bank statement but not recorded or credited the same in bank cash book. d) Any income collected and credited by bank but not recorded in bank cash book. e) The wrong amount or entry made in bank cash book or bank statement. The specimen of bank reconciliation statement is as follows. The statement prepared by operating level office to reconcile the balances of bank cash book and pass book or bank statement is known as bank reconciliation statement. Government of Nepal AGF No 15 ………Office/Department/Ministry Amount Amount Bank Reconciliation Statement ××× …………… year ………………… month ××× Particulars ××× Bank balance as per pass book/bank statement .................................................................... ××× Add: In transit deposit / cheque paid but not collected ××× i) ……………....................................................................................................... ××× ××× ii) ………….......................................................................................................... ××× Total ........................................................................................................................................ ××× Less: Cheque issued but not presented i) Cheque No. ……………………….................................................................... ii) Cheque No. …………………........................................................................... Actual bank balance................................................................................................................ Bank balance as per cash book ........................................................................................... Certified that the above statement is correct. Submitted by:………...............…………….. Position:………...............…………….. Date:………...............…………….. Approved by:………...............…………….. Position:………...............…………….. Date:………...............…………….. Ill-2 Prepare a bank reconciliation statement under AGF No. 15: a) Bank balance as per bank cash book at the end of Ashad 2074 amounted to Rs.25,480. b) Bank balance as per bank statement amounted to Rs. 19,480. c) Cheque issued but not presented for payment: 308 Office Management and Accountancy

Cheque No. 49357 of Rs.14,000 issued for purchase of furniture Cheque No. 53928 of Rs. 10,000 issued for purchase of stationery d) Cheque paid into bank but not collected: Cheque No. 1439 of Rs. 21,000, refund advance of Mr. Gopal Cheque No. 5348 of Rs. 9,000 received deposit Solution: Government of Nepal AGF No. 15 ………Office/Department/Ministry Bank Reconciliation Statement For the month of Ashad, 2074 Particulars Amount in Rs. Amount in Rs. Bank balance as per pass book.......................................................................... 19,480 Add: Cheque paid into but not collected i) Cheque No. 1439 advance refunded.......................................... 21,000 30,000 ii) Cheque No. 5348 deposit received............................................ 9,000 49,480 Total ....................................................................................................... Less: Cheque issued but not presented for payment 14,000 i) Cheque No. 49357 for purchase of furniture............................... ii) Cheque No. 53928 for purchase of stationery........................... 10,000 24,000 Bank balance as per cash book.......................................................................... 25,480 Submitted by:………...............…… Position:………...............…… Date:………...............…… Approved by:………...............…… Position:………...............…… Date:………...............…… Statement of governmental revenue Government offices may collect its revenue from different sources. In order to provide the information about the amount of revenue collected by operating level government offices under various sources, they prepare statement on monthly basis which is known as statement of governmental revenue. It is prepared under the format of AGF No. 9. Its example is given below: Government of Nepal AGF No.9 Ministry of Finance Internal Revenue Department Tax office, Babarmahal, Kathmandu Monthly Statement of Revenue S.N. Classification of Name of Revenue upto last Revenue of this Total revenue in Rs. revenue revenue heads month in Rs. month in Rs. 1,75,000 1 1-1-2-11 Production 1,50,000 25,000 2,60,000 2 1-1-2-12 Export 1,80,000 80,000 3 1-1-12-20 Miscellaneous 25,000 65,000 40,000 3,70,000 1,30,000 5,00,0000 Monthly Statements 309

Position of fund Total revenue Rs. 5,00,000 Less Deposited in consolidated fund Rs. 4,70,000 Cash balance Rs. 30,000 Statement of security deposit Security deposit is the amount collected from person or party in advance which will be refunded to the concerned person or party after the completion of determined task. Every operating level government offices should prepare a statement of the transactions relating to security deposit and submit to the concerned central level office which is known as monthly statement of security deposit. It is also prepared at the end of every month under the format of AGF No. 19. It provides the information about total amount of security deposit received, amount refunded after completion of job and security deposit transferred to revenue account etc. The statement which is prepared to provide information about the transactions relating to security deposit is called monthly statement of security deposit. The specimen of statement of security deposit is given below: AGF No 19 Government of Nepal ………Office/Department/Ministry Statement of Security Deposit From …………… to ………………… Particulars Amount ××× Total security deposit received upto the previous month ...................................................... ××× Total security deposit received in the current month............................................................... ××× Total........................................................................................................................................ ××× Less: Security deposit refunded after the completion of office procedure.................................. ××× ××× Adjusted amount of security deposit or amount of security deposit transferred to revenue account ............................................................................................................................ ××× Net amount of security deposit............................................................................................... Position of fund Account number. ………………………… Bank balance ………........ Cash balance ………….. Submitted by:………..…………….. Position:………………….. Date:……..............…….. Approved by :……………………… Position:………………….. Date:…….............……… Short Notes to Remember (SNR 11.4)  In transit deposit refers to the amount of cash, cheque or draft deposited by the office into the bank remained to be recorded in the books of bank.  Bank pass book or statement is the document provided by bank to its account holder containing information about deposit, withdrawal and balance. 310 Office Management and Accountancy

REVIEW ILLUSTRATIONS Ill-4 The following transactions are extracted from the record of a government office: B.H. No. Budget head/sub-head Annual budget Expenditure of 21111 Salary................................................................................ Rs. Shrawan Rs. 2,86,000 22,000 22111 Water supply and electricity charges........................... 96,000 8,000 22311 Office re;ated expenses.................................................. 1,44,000 11,000 29311 29511 Furniture and fixture...................................................... 2,00,000 50,000 Machinery and equipment............................................ 5,00,000 1,00,000 Total.................................................................................. 12,26,000 1,91,000 Additional information: a) Total imprest fund received Rs. 2,25,000 b) Uncleared furniture advance Rs. 20,000 c) Petty cash fund balance Rs. 500 d) Bank balance Rs. 33,500 Required: Statement of expenditure for the month of Shrawan Solution: Government of Nepal AGF No.13 ………………….. Office Statement of Expenditure For the month of Shrawan Expenditure of Release upto B.H.No. Budget Annual Expenditure Balance of Budget Shrawan Shrawan Heads/Sub-heads Appropriation upto Shrawan Rs. Rs. Rs. 21111 22,000 22111 Salary Rs. Rs. 2,64,000 22311 Water supply and electricity 2,86,000 22,000 8,000 29311 Office expenses 29511 Furniture and fixture 96,000 8,000 88,000 11,000 Machinery and equipment 1,44,000 11,000 1,33,000 50,000 2,00,000 50,000 1,50,000 1,00,000 5,00,000 1,00,000 4,00,000 1,91,000 - 12,26,000 1,91,000 10,35,000 2,25,000 Revolving fund balance 1,91,000 2,25,000 12,26,000 1,91,000 10,35,000 Fund position Total amount received upto Shrawan Rs. 2,25,000 Bank balance Rs. 33,500 Total expenditure upto Shrawan Rs. 500 Rs.1,91,000 Cash in hand Rs. 34,000 Outstanding advances Total expenditure (Less uncleared advance) Rs. 34,000 Rs 20,000 Rs. 1,71,000 Loan payable Rs…………… Monthly Statements 311

(1,91,000-20,000) Loan receivable Rs…………… Date:…………. Submitted by:………..…………….. Designation:………………….. Date:…………… Approved by :……………………… Designation:………………….. Ill-5 The following information were given to you: B.H. No. Budget head/sub-head Annual budget Expenditure Expenditure of Rs. upto Kartik Rs. Marga Rs. 21111 Salary........................................... 4,30,000 33,000 21113 Dearness allowance................... 90,000 1,32,000 7,000 22112 Communication charge............. 96,000 28,000 8,000 22521 Production materials................. 6,00,000 30,000 25,000 29411 Vehicles........................................ 10,00,000 1,00,000 1,00,000 1,73,000 Total............................................. 22,16,000 4,00,000 AGF No.13 6,90,000 Additional information: a) Amount received on revolving fund till the date Rs. 8,70,000. b) Balance in petty cash fund Rs. 1,000. c) Advance of production material Rs. 20,000 remain uncleared. d) Loan to be paid Rs. 10,000. Required: Statement of expenditure showing: a) Budget release in each head b) Total expenditure upto Kartik c) Revolving fund balance d) Bank balance Solution: Government of Nepal ………………….. Office Statement of Expenditure For the month of Marga Expenditure Release B.H.No. Budget Annual Expenditure Balance of of Marga Rs. upto Heads/Sub-heads Appropriation Rs. upto Marga Budget Rs. 21111 33,000 Marga Rs. 21113 Salary 4,30,000 Rs. 2,65,000 7,000 1,32,000 22112 Dearness allowance 90,000 1,65,000 55,000 8,000 28,000 22521 Communication charges 96,000 58,000 25,000 30,000 39411 Production material 35,000 1,00,000 1,00,000 Vehicles 6,00,000 38,000 4,75,000 4,00,000 10,00,000 1,25,000 5,00,000 5,00,000 1,73,000 6,90,000 Revolving fund balance 22,16,000 8,63,000 13,53,000 1,73,000 1,80,000 - - - 8,70,000 22,16,000 8,63,000 13,53,000 312 Office Management and Accountancy

Fund position Total amount received upto Marga Rs. 8,70,000 Bank balance Rs..16,000 Total expenditure upto Marga Rs. 8,63,000 Cash in hand Rs. 1,000 Rs. 7,000 Rs. 17,000 Outstanding (Uncleared) advances Rs 20,000 Total expenditure (Less uncleared advances) Rs. 8,43,000 Loan payable Rs. 10,000 (8,63,000-20,000) Loan receivable Rs……… Submitted by:………..…………….. Designation:………………….. Date:…………. Approved by :……………………… Designation:………………….. Date:…………… Working note: d) Bank balance = Total amount received – Total expenditure – Cash balance + Loan payable = 8,70,000 – 8,63,000 – 1,000 + 10,000 = Rs. 16,000 Ill-6 From the following transactions, prepare the monthly expenditure report for the month of Chaitra 2074: Budget head / sub-head Annual budget Expenditure upto Expenditure upto Rs. Falgun Rs. Chaitra Rs. Salary...................................................... 5,80,000 3,52,000 3,96,000 House rent.............................................. 72,000 48,000 54,000 Repair and maintenance...................... 1,00,000 65,000 70,000 Books and materials............................. 2,00,000 1,50,000 1,75,000 Travelling programme expenses........ 96,000 65,000 70,000 Additional information: a) Total release for initial revolving fund Rs. 7,90,000. b) Bank balance Rs. 4,500. c) Loan given to nearby office Rs. 20,000. d) Advance account of bank cash book shows Rs. 12,000 in the debit and Rs. 10,000 in credit column respectively. Solution: Government of Nepal AGF No.13 ………………….. Office Statement of Expenditure For the month of Chaitra Expenditure Release upto B.H.No. Budget heads/Sub-heads Annual Expenditure Balance of of Chaitra Rs. Chaitra Rs. 21111 Salary upto Chaitra Rs. Budget Rs. 22121 House rent Appropriation 44,000 3,52,000 22212 Repair and maintenance 3,96,000 1,84,000 6,000 48,000 22313 Books and materials Rs. 54,000 18,000 5,000 65,000 22613 Travelling expenses 5,80,000 70,000 30,000 25,000 Revolving fund balance 25,000 5,000 1,50,000 72,000 1,75,000 26,000 85,000 65,000 1,00,000 70,000 2,00,000 2,83,000 85,000 6,80,000 7,65,000 1,10,000 96,000 2,83,000 7,90,000 10,48,000 10,48,000 7,65,000 Monthly Statements 313

Fund position Total amount received upto Chaitra Rs. 7,90,000 Bank balance Rs..4,500 Total expenditure upto Chaitra Rs. 7,65,000 Cash in hand Rs. 500 Rs. 25,000 Rs. 5,000 Outstanding (Uncleared) advances Rs 2,000 (12,000 – 10,000) Total expenditure (Less uncleared advances) Rs. 7,63,000 Loan payable Rs. × (7,65,000-2,000) Loan receivable Rs. 20,000 Submitted by:………..…………….. Designation:………………….. Date:…………. Approved by :……………………… Designation:………………….. Date:…………… Working note: Bank balance = Total amount received – Total expenditure – Cash balance – Loan receivable or, 4,500 = 7,90,000 – 7,65,000 – Cash balance – 20,000 or, 4,500 = 25,000 – Cash balance – 20,000 Cash balance = Rs. 500 Ill-7 You are given the following information of District Education Office, Rasuwa: Budget head/sub-head Annual budget Expenditure of Balance of Budget Rs. Magh Rs. Salary.................................................. Rs. Uniforms............................................ 2,20,000 16,000 85,000 Fuel for other purpose..................... 60,000 25,000 Miscellaneous expenses................... 5,000 40,000 Public construction........................... 1,08,000 33,000 84,000 9,000 2,00,000 7,00,000 6,000 50,000 Additional information: a) Petty cash balance Rs. 800. b) Uncleared uniform advance Rs. 3,000. c) Deposit received from contractor Rs. 10,000. d) Bank balance Rs. 20,200. Required: Statement of expenditure (AGF No. 13) showing: a) Budget release in each head b) Total expenditure upto Magh in each head c) Total revolving fund received 314 Office Management and Accountancy

Solution: Government of Nepal AGF No.13 District Education Office, Rasuwa Statement of Expenditure For the month of Marga Expenditure Release upto Budget Heads/Sub- Annual Expenditure Balance of B.H.No. heads Appropriation upto Magh Budget Rs. of Magh Rs. Magh Rs. Rs. Rs. 85,000 2,20,000 1,35,000 25,000 16,000 1,19,000 21111 Salary 60,000 40,000 5,000 30,000 21121 Uniform 1,08,000 35,000 33,000 9,000 59,000 22314 Fuel for other purpose 84,000 68,000 2,00,000 6,000 45,000 22711 Miscellaneous expenses 7,00,000 51,000 3,83,000 50,000 29611 Public construction 5,00,000 4,50,000 11,72,000 86,000 Revolving fund balance 7,89,000 7,03,000 97,000 86,000 8,00,000 11,72,000 7,89,000 3,83,000 Fund position Total amount received upto Magh Rs. 8,00,000 Bank balance Rs. 20,200 Total expenditure upto Magh Rs. 7,89,000 Cash in hand Rs. 800 Rs. 11,000 Rs. 21,000 Outstanding (Uncleared) advances Rs. 3,000 Total expenditure (Less uncleared advance) Rs. 7,86,000 Loan payable Rs × (7,89,000-3,000) Loan receivable Rs × Security deposit received: Rs. 10,000 Submitted by:………..…………….. Designation:………………….. Date:…………. Approved by :……………………… Designation:………………….. Date:…………… Working note: Bank balance = Total amount received – Total expenditure – Cash balance + Security deposit received 20,200 = Total amount received – 7,89,000 – 800 + 10,000 Total amount received = 7,89,000 + 20,200 + 800 – 10,000 = Rs. 8,00,000 Ill-8 The following information are given: Bank balance as per the bank cash book of office at the end of Chaitra 2070 is Rs. 96,050 but the bank pass book has shown Rs. 73,500 on the same date. The following differences were found on comparison of two statements. a) Office has issued the following cheques but they have not yet been presented for payment. Monthly Statements 315

 Cheque No. 53901 issued to stationery house for office stationery Rs. 4,950  Cheque No. 63013 issued to Vintuna suppliers for sport material Rs. 13,500 b) Office has deposited the following amount but not credited by the bank  Imprest fund received from the Office of the Treasury and Comptroller Rs. 40,000  Excess advance amount cleared by Mr. Sharma, Accountant deposited into bank Rs. 1,000 Required: Bank reconciliation statement (AGF No. 15) Solution: Government of Nepal AGF No 15 ………Office/Department/Ministry Bank Reconciliation Statement For the month of Chaitra, 2070 Particulars Amount Amount Bank balance as per pass book............................................................. 73,500 Add: Cheque deposited but not collected: 40,000 Imprest fund received........................................................... 1,000 Excess advance of Mr. Sharma............................................. 41,000 Total...... 1,14,500 Less: Cheque issued but not presented for payment 4,950 18,450 Cheque No. 53901 for office stationery............................... 13,500 96,050 Cheque No. 63013 for sport materials ............................... Bank balance as per cash book............................................................. Submitted by:………..……………....... Position:………..……………....... Date:………..……………....... Approved by:………..……………....... Position:………..……………....... Date:………..……………....... Key Terms Bank reconciliation statement – statement prepared to reconcile the differences in Monthly statements bank balance between cash book and pass book. Statement of expenditure – statements prepared by operating level offices on monthly basis to report the various financial information to the central level offices. – monthly statement prepared to disclose the information about position of budget and position of fund. 316 Office Management and Accountancy

Statement of revenue – statement prepared to provide the information Statement of security deposits about the revenues collected from various sources. – statement prepared to provide information about receipt, refund and forfeiture of security deposit. A. Very short answer questions 1. What is monthly statements? 2. Write the AGF number of statement of expenditure and bank reconciliation statement. 3. Which monthly statements fall under AGF No 9 and AGF No 19? 4. How many columns are in upper part of statement of expenditure? 5. How is actual expenditure obtained under the statement of expenditure? 6. Write name of any two monthly statements to be prepared by operating level offices. B. Short answer questions 1. What do you mean by monthly statements? Describe the importance of monthly statements. 2. What is bank reconciliation statement? Why is it prepared? 3. Mention the causes of having differences between bank balance shown by bank cash book and bank pass book or statement. 4. Write short notes on: a) Statement of government revenue (AGF No. 9) b) Statement of security deposit (AGF N. 19) C. Long answer questions 1. Mention the types of monthly statement and describe about statement of expenditure. 2. Why is statement of expenditure prepared? Also mention the methods of preparing it. 3. Describe the types of monthly statements to be prepared by operating level government offices. Monthly Statements 317

PRACTICAL PROBLEMS(PP) PP-1 The following information are given: B.H. No. Budget head / sub- head Annual budget Expenditure upto Expenditure of Rs. Ashwin Rs. Kartik Rs. 21111 Salary.......................................... 4,30,000 95,000 33,000 21112 Local allowance......................... 22111 Water and electricity charges.. 1,00,000 23,000 8,000 29311 Furniture.................................... 29511 Machinery and equipment...... 1,32,000 33,000 11,000 Total............................................ 2,00,000 50,000 20,000 3,00,000 1,00,000 50,000 11,62,000 3,01,000 1,22,000 Additional information: a) Total imprest fund received Rs. 4,50,000. b) Cash in hand Rs. 500. c) Uncleared furniture advance Rs. 10,000. Required: Statement of expenditure of Kartik showing: a) Budget release in each budget head b) Budget balance in each budget head c) Total expenditure upto Kartik d) Bank balance e) Revolving fund balance Ans: c) Rs. 4,23,000 d) Rs. 26,500 PP-2 The following information are given to you: B.H. No. Budget head/sub-head Annual budget Expenditure upto Expenditure of 21111 Salary.......................................... Rs. Kartik Rs. Marga Rs. 22112 Communication charges.......... 88,000 22,000 22311 Office related expenses............ 2,86,000 35,000 9,000 22121 House rent.................................. 1,08,000 42,000 7,000 29311 Furniture.................................... 1,00,000 40,000 10,000 Total............................................ 1,20,000 60,000 20,000 2,00,000 2,65,000 68,000 8,14,000 Additional information: a) Total imprest fund received Rs. 3,40,000. b) Uncleared furniture purchase advance Rs. 15,000. c) Petty cash fund balance Rs. 1,000. Required: Statement of expenditure of Marga showing: 318 Office Management and Accountancy

a) Budget release in each budget head d) Rs. 6,000 b) Budget balance in each budget head c) Total expenditure upto Marga d) Bank balance e) Revolving fund balance Ans: c) Rs. 3,33,000 PP-3 You are provided the following information: B.H. Budget head / sub- head Annual budget Expenditure upto Expenditure of No. Rs. Chaitra Rs. Baishakh Rs. 21111 Salary................................................... 5,72,000 4,10,000 44,000 21121 Uniform............................................... 1,00,000 75,000 10,000 22311 Office re;ated expenses..................... 1,60,000 1,20,000 12,500 22212 Repair and maintenance................... 50,000 30,000 5,000 29411 Vehicles................................................ 7,00,000 4,00,000 1,00,000 Total..................................................... 15,82,000 10,35,000 1,71,500 Additional information: a) Total revolving fund received Rs. 12,10,000. b) Uncleared dress material purchase advance Rs. 8,000 c) Petty cash fund balance Rs. 500. Required: Statement of expenditure (AGF No. 13) Ans: Bank balance Rs. 3,000 PP-4 You are given the following information: B.H. No. Budget head/sub-head Annual budget Expenditure upto Expenditure of 21111 Salary................................................ Rs. Marga Rs. Poush Rs. 21123 Medical treatment expenses.......... 3,20,000 1,20,000 24,000 22122 Other rent......................................... 22521 Production materials...................... 50,000 10,000 5,000 29511 Machinery........................................ 1,26,000 60,000 12,000 1,25,000 75,000 10,000 5,00,000 2,00,000 20,000 Total.................................................. 11,21,000 4,65,000 71,000 Additional information: a) Revolving fund balance Rs. 75,000. b) Advance of production material Rs. 7,000 remain uncleared. c) Loan to be paid Rs. 10,000. Monthly Statements 319

d) Petty cash fund balance Rs. 500. Required: Statement of expenditure (A.G.F. No 13) Ans: Bank balance Rs. 13,500 PP-5 The following information are provided to you: Budget head /sub-head Annual budget Expenditure upto Expenditure upto Rs. Magh Rs. Falgun Rs. Salary....................................................... 1,60,000 1,80,000 Dearness allowance............................... 2,60,000 56,000 64,000 Office related expenses......................... 1,00,000 70,000 80,000 Miscellaneous expenses........................ 1,20,000 35,000 40,000 Machinery and equipment................... 2,00,000 2,50,000 60,000 Total......................................................... 3,00,000 5,21,000 6,14,000 8,40,000 Additional information: a) Total imprest fund received Rs. 6,25,000. b) Uncleared machinery purchase advance Rs. 30,000. c) Petty cash fund balance Rs. 400. d) Loan to be collected Rs. 8,000. Required: Statement of expenditure of Falgun showing: a) Budget expenditure of Falgun in each budget head b) Budget balance in each budget head c) Net expenditure d) Bank balance PP-6 Ans: c) Rs. 5,84,000 d) Rs. 2,600 gTohveernfomlleonwt oinffgicetransactions are extracted from the record of a Budget head/sub-head Annual budget Expenditure upto Expenditure upto Rs Falgun Rs. Chaitra Rs. Salary.................................................... 5,20,000 3,60,000 4,00,000 Communication charge...................... 2,00,000 1,30,000 1,45,000 Repair and maintenance.................... 95,000 60,000 67,000 Production material............................ 2,00,000 1,00,000 1,25,000 Vehicles................................................. 7,00,000 3,00,000 4,00,000 Total...................................................... 17,15,000 9,50,000 11,37,000 Additional information: a) Balance in imprest fund Rs.2,00,000. b) Cash balance Rs. 1,000. c) Loan given to nearby office is to be collected. d) Motorcycle purchase advance Rs. 85,000 remain uncleared. 320 Office Management and Accountancy

e) Bank balance Rs. 7,000. Required: Statement of expenditure showing: a) Expenditure of Chaitra in each budget head b) Balance of budget in each budget head c) Net expenditure d) Loan receivable amount Ans: c) Rs. 10,52,000 d) Rs. 5,000 PP-7 oTfhfiecfeo: llowing transactions were extracted from the record of a government Budget head/sub-head Annual budget Expenditure of Balance of budget Rs. Rs. Magh Rs. Salary..................................................... 80,000 6,000 34,000 Water and electricity charges............. 30,000 2,000 15,000 Other rent.............................................. 40,000 3,000 19,000 Uniform................................................. 25,000 - 15,000 Vehicles.................................................. 10,000 30,000 Fuel for other purpose........................ 1,00,000 3,000 15,000 36,000 1,28,000 Total....................................................... 24,000 3,11,000 Additional information: a) The debit column and credit column of bank cash book shows Rs. 7,000 and Rs. 3,000 respectively. b) Balance in petty cash fund Rs. 300. c) Bank balance Rs. 2,700 Required: Statement of expenditure showing: a) Total expenditure upto Magh b) Total release upto Magh c) Net expenditure d) Total revolving fund received Ans: a) Rs. 1,83,000 b) Rs. 1,59,000 c) Rs. 1,79,000 d) Rs. 1,86,000 PP-8 You are provided the following information: Budget head/sub-head Annual budget Expenditure upto Balance of budget Rs. Kartik Rs. Rs. Salary........................................................ Food.......................................................... 1,20,000 35,000 55,000 Water supply and electricity charges.. 40,000 12,000 25,000 Production materials and services....... 36,000 12,000 20,000 Miscellaneous expenditure.................... 60,000 25,000 30,000 Building construction............................. 24,000 8,000 15,000 40,000 55,000 Total.......................................................... 1,00,000 1,32,000 2,00,000 3,80,000 Monthly Statements 321

Additional information: a) Petty cash fund balance Rs.400. b) Bank balance Rs. 6,600. c) Uncleared production material purchase advance Rs. 3,000. d) Deposit received from the contractor Rs. 1,000. Required: Statement of expenditure of Marga showing: a) Total expenditure upto Marga b) Total expenditure of Marga c) Net expenditure d) Total revolving fund received Ans: a) Rs. 1,80,000 b) Rs. 48,000 c) Rs. 1,77,000 d) Rs. 1,86,000 PP-9 The following information are given to you: Bank balance as per the office bank cash book at the end of Ashadh 2074 shows a balance of Rs. 89,750 but the bank pass book has shown Rs. 79,550 on the same date. The following differences were found: a) Office has deposited the following amounts but not credited by the bank: Loan received from nearby office deposited into bank Rs. 25,000 Excess advance amount of Mr. Oli deposited into bank Rs. 2,500 b) Office has issued the following cheques but have not yet been presented for payment: Cheque No. 03459 issued to stationery suppliers for office materials Rs. 5,000 Cheque No. 04936 issued to furniture centre for purchase of furniture Rs. 12,300 Required: Bank reconciliation statement (AGF No. 15) PP-10 Prepare a bank reconciliation statement under AGF No. 15: a) Bank balance as per bank cash book at the end of Chaitra 2074 amounted to Rs. 77,030. b) Bank balance as per bank statement amounted to Rs. 59,030. c) Cheques issued but not presented for payment are: Cheque No. 15980 of Rs. 10,000 for purchase of sport materials Cheque No. 21890 of Rs. 5,000 for purchase of office materials d) Cheques paid into bank but not collected are: Cheque No. 490 of Rs. 19,000 advance refunded from Gopal Cheque No. 5007 of Rs. 14,000 deposit received from contractor  322 Office Management and Accountancy

SEE Model Questions Sets Office Management and Accountancy Time: 2 hrs 15 minutes (CDC Model Questions Set 2065) F.M.: 75 Candidates are required to give their answers in their own wwords as far as practicable. The figures in the margin indicate full marks. Set 1 Group A Answer the following questions in one sentence: [5×1=5] 1. Write the full form of WTO. 2. What is bearer cheque? 3. How is the net profit determined? 4. Which institution does the final audit of government offices? 5. Write the AGF Number of bank cash book and statement of expenditure. Group B Give short answer to the following questions: [8×5=40] 6. What is tippani? Mention any four points to be considered while drafting it. [1+4] 7. What is filing? List out any four advantages and four disadvantages of numerical filing method. [1+4] 8. Why is foreign trade necessary? Write any two similarities and two dissimilarities of home trade and foreign trade. [1+2+2] 9. Prepare a trial balance of Nepal Store for the fiscal year 2063/64 based on the following particulars: [5] Description Amount Description Amount Capital Rs.2,13,000 Salary Rs. 25,000 Purchases 75,000 Discount received 2,000 Sales 1,25,000 Stationery 5000 Goodwill 45,000 Machine 1,90,000 [ Ans: Total Rs. 3,40,000] 10. Prepare a balance sheet of B & D distributors on the basis of following particulars on 31st Ashadh 2064: [5] Capital Rs.1,75,000 Land Rs. 1,25,000 Investment 80,000 Accrued income 10,000 Bank overdraft 30,000 Debtors 35,000 Net profit 40,000 Wages payable 5,000 [Ans: Total Rs. 2,50,000] 11. From the following particulars, prepare a profit and loss account to find out net profit or net loss: [5] Gross profit Rs. 1,00,000 Salary Rs. 25,000 Discount received 2,000 Carriage out 7,000 Interest 3,000 Depreciation 6,000 Dividend received 5,000 Advertisement 12,000 [Ans: Net profit Rs. 54,000] SeEeEMMooddeellQQuueessttioionnssSSeettss 323

12. Highlight the necessity of new accounting system and explain any of its three features in brief. [2+3] 13. Why is bank cash book prepared? What kinds of effect are seen in which accounts of bank cash book while clearing excess expenditure rather than advance amount? [2+3] Group C Write long answer to the following questions: [3×10=30] 14. Introduce bank and describe any six functions of commercial bank. [1+9] 15. Prepare Goswara vouchers (AGF No 10) on the basis of following transactions of District Irrigation Office, Sarlahi: [10] a) 2064/04/10 Received bank order of Rs.3,00,000 as revolving fund. b) 2064/04/14 Rs. 10,000 paid for furniture purchase through cheque No. 00245. c) 2064/04/17 Senior Clerk Miss Rita Giri was paid an amount of Rs.4,000 for program TADA in advance through cheque No. 00246. d) 2064/04/20 Established a petty cash fund of Rs. 500. e) 2064/04/25 The advance received by senior clerk Rita Giri was cleared according to the statement submitted by her and excess expenditure Rs. 500 was paid by cheque No. 00248. 16. The details of expenses in District Police Office, Dolpa are as follows: B.H No Budget heads Annual Expenditure up to Expenditure Appropriation Rs. Poush (Rs.) of Magh Rs. 21111 Salaries 1,44000 72,000 12,000 21112 Local allowance 12,000 6,000 1,000 22311 Office related expenses 10,000 4,000 2,000 22212 Repairs & maintenance 6,000 3,000 500 22711 Miscellaneous expenses 8,000 5000 1,500 29411 Vehicles 20,000 12,000 3,000 Total 2,00,000 1,02,000 20,000 Additional information: a) Revolving fund balance Rs. 25,000 b) Advance for vehicle of Rs. 2,000 is not cleared. c) Petty cash fund established with Rs. 1,000. Prepare statement of expenditure for the month of Magh of 2064 showing the following information: a) Expenditure upto Magh [3] b) Balance of budget [2] c) Bank balance [2] d) Revolving fund release [2] e) Net expenditure [1] [Ans: a) Rs. 1,22,000 b) Rs. 78,000 c)Rs. 4,000 d) Rs. 1,27,000 e) Rs. 1,20,000] 324 Office Management and Accountancy

Set 2 Group A Answer the following questions in one sentence: [5×1=5] 1. Write the full form of A.T.M. 2. Name the first bank of Nepal. 3. Which institution does the internal audit of operating level government offices? 4. How is gross profit of the business firm ascertained? 5. Mention the AGF No. of budget sheet and bank reconciliation statement. Group B Give short answer of the following questions. [8×5=40] 6. Why is report prepared? Describe any four types of report. [1+4] 7. What is alphabetical filing? State its four merits and four demerits. [1+2+2] 8. What is foreign invoice? Explain any four types of foreign invoice in brief. [1+4] 9. Prepare a trial balance of Subhalaxmi Concern, Banke from the following particulars as on Chaitra end 2074: [5] Furniture & fixtures Rs.2,25,000 Purchases Rs. 4,30,000 Salary and wages 67,500 Sales revenue 4,50,000 Capital 2,50,000 Dividend received 7,500 Bank loan 60,000 Opening stock 45,000 [Ans: Total Rs. 7,67,500] 10. Following particulars relating to Bishal Traders are given to you: Gross profit Rs. 1,90,000 Depreciation Rs. 20,000 Income from investment 25,000 Advertisement 11,500 Insurance premium 7,500 Transfer fees 8,500 Salary paid 34,000 Dividend receipt 16,000 [5] Required: Profit and loss account as on 31st Chaitra 2074 [Ans: Net profit Rs. 1,66,500] 11. Prepare a balance sheet of Butterfly Company, Kathmandu for Chaitra end 2074 from the following information: [5] Capital Rs. 7,00,000 Cash at bank Rs. 60,000 Closing stock 1,34,000 Book debts 2,00,000 Net loss 68,000 Expenses payable 80,000 Bank overdraft 82,000 Business premises 4,00,000 [Ans: Total 7,94,000] 12. Differentiate between internal audit and final audit. [5] 13. What is budget sheet? Explain its parts with their usefulness. [2+3] Group C Give long answer of the following questions: [3×10=30] 14. What is central bank? Describe the major functions of central bank of Nepal. [2+8] 15. Prepare journal vouchers of Land Revenue Office, Khotang from the following transactions: [10] a) 2074/04/05 Received a bank order equal to one sixth of last year’s total budget expenditure Rs.24,00,000 as an initial imprest fund. SeEeEMMooddeellQQuueessttioionnssSSeettss 325

b) 2074/04/10 Purchased a photocopy machine of Rs. 40,000 from Machinery Suppliers and paid by cheque No 00048. c) 2074/04/18 Section Officer Ms Anamika Acharya was paid an advance of Rs. 35,000 for travelling expenses through cheque No 00049. d) 2074/04/25 Travelling expenses advance of Ms Anu Acharya was cleared on the basis of expenditure bill submitted by her. e) 2074/04/30 Out of total salary Rs. 99,000 and dearness allowances Rs. 12,000, deducted provident fund Rs. 18,000, income tax Rs. 6,000 and balances has been distributed through cheque No 00050. 16. The following particulars of Dudhkoshi Rural Municipality, Solukhumbu are given : B.H No Budged heads Annual Expenditure upto Expenditure of budget(Rs.) Chaitra (Rs.) Baishakh (Rs.) 21111 Salary 4,00,000 1,80,000 40,000 21113 Dearness allowance 80,000 25,000 10,000 22212 Repair & maintenance 1,20,000 60,000 40,000 22313 Books & materials 1,50,000 75,000 25,000 29411 Vehicles 3,00,000 2,00,000 – 29511 Machinery & equipment 2,50,000 1,00,000 50,000 Total 13,00,000 6,40,000 1,65,000 Additional information: (i) Amount of imprest fund received Rs. 8,50,000 (ii) Petty cash fund balance Rs. 2,000 (iii) Uncleared amount of advance on repair and maintenance Rs. 5,000 Required: Statement of expenditure showing the following: a) Expenditure up to Baishakh [3] b) Imprest fund balance [1] c) Balance of budget [2] d) Bank balance [2] e) Net expenditure [2] [Ans: a) Rs.8,05,000 b)Rs. 2,10,000 c) Rs.4,95,000 d) Rs.43,000 e) Rs.8,00,000] Set 3 Group A Give answer of the following questions in one sentence: [5×1=5] 1. Write the full form of SAFTA and SAPTA. 2. When was central bank of Nepal established? 3. How is closing stock of business firm valued? 4. Who does the final audit of a company? 5. Mention the AGF No. of bank cash book and statement of security deposit. Group B Give short answer of the following questions: [8×5=40] 6. Give the meaning of report and state any four considerations for preparing it. [1+4] 7. What is indexing? How does it support to filing system? Give any four reasons. [1+4] 326 Office Management and Accountancy

8. Introduce home trade and explain four methods of performing home trade in order. [1+4] 9. Write any five dissimilarities between government accounting and business accounting. [5] 10. What is bank cash book? Explain its any four accounts in brief. [1+4] 11. From the following particulars of Snowland Company on 31st December 2017, prepare a trial balance: [5] Capital Rs.2,00,000 Bills payable Rs. 25,000 Investment 1,85,000 Rent received 5,000 Depreciation 20,000 Cash balance 33,000 Unearned commission 15,000 Salary and wages 7,000 [Ans: Total Rs. 2,45,000] 12. Prepare a profit and loss account of Touch- Me-Not Company for the year ended 31st Chaitra 2074 : [5] Gross loss Rs. 45,000 Interest paid Rs. 13,500 Administrative expenses 52,000 Travelling expenses 14,000 Miscellaneous income 13,000 Depreciation 19,000 Rent received 7,100 Salary and wages 27,000 [Ans: Net loss Rs. 1,50,400] 13. Prepare a balance sheet from the following information of Mero Traders as on 31st December 2017: [5] Reserve fund Rs. 15,000 Net profit Rs. 7,50,000 Bank balance 54,000 Advance payment 5,10,000 Drawing 1,50,000 Capital 10,35,000 Leasehold premises 9,00,000 Marketable securities 1,86,000 [Ans: Total 16,50,000] Group C [3×10=30] Give long answer of the following questions: 14. What are financial institutions? Describe any four financial institutions operating in Nepal. (2+8) 15. Prepare AGF No. 10 of the following transactions of District Co-ordination Committee, Kathmandu: [10] a) 2074/08/01 Received a bank order of Rs. 4,00,000 for the actual expenditure of previous month Rs. 3,50,000. b) 2074/08/10 Issued a cheque of Rs. 15,000 for purchasing stationery materials for office use. c) 2074/08/15 Created petty cash fund of Rs. 2,000 through cheque in the responsibility of Petty Cashier Sharada Gurung. d) 2074/08/25 Furniture advance of Nayab Subba Mr. Bhojraj Kafle Rs. 25,000 has been cleared by issuing cheque for excess expenditure Rs. 5,000. e) 2074/08/30 Issued a cheque of Rs. 1,97,000 for distribution of salary after making deduction of provident fund Rs. 50,000 income tax of Rs. 8,000 and provident fund loan of Rs. 20,000. SeEeEMMooddeellQQuueessttioionnssSSeettss 327

16. You are provided the following information of a government office, Kathmandu: Budget heads Annual budget Expenditures up Expenditures up to (Rs.) to Chaitra (Rs.) Baishakh (Rs.) Salary 3,00,000 2,00,000 2,40,000 Dearness allowance 30,000 16,000 22,000 House rent 90,000 65,500 75,500 Contingencies 65,000 50,000 50,000 Vehicles 25,000 95,000 Machinery & equipment 1,00,000 70,000 95,000 1,21,000 Total 7,06,000 4,26,500 5,12,500 Additional information: [2] i) Revolving fund received Rs. 5,50,000 [2] ii) Petty cash fund balance Rs. 500 [2] iii) Inter - office loan Rs. 5,000 remains unpaid. [2] iv) Vehicle advance Rs. 2,000 has not been cleared. [2] Required: Statement of expenditure showing: a) Revolving fund balance b) Expenditure of Baishakh in each head c) Bank balance d) Net expenditure deducting advance e) Budget balance in each head [Ans: a) Rs. 1,23,500 b) Rs. 86,000 c) Rs. 42,000 d) Rs. 5,10,500 e) Rs. 1,93,500] Set 4 Group A Answer the following question in one sentence. (5×1=5) 1. Write the establishment date of WTO. 2. Which bank issues notes and coins in the country? 3. Give any two examples of direct expenses. 4. Mention any two accounts of bank cash book. 5. Which budget heads fall under the budget head number 22711 and 29411? Group B Give short answer of the following questions: (8×5=40) 6. What is office procedure? Write any four objectives of preparing tippani under it. [1+4] 7. What is subjective filing? State its four merits and four demerits. [1+2+2] 8. Write any five differences between home trade and foreign trade. [5] 9. What is new accounting system of government of Nepal? Explain its four objectives.[1+4] 10. Why is budget sheet prepared in government offices? Write any four rules for posting the transactions into budget sheet. [1+4] 11. Prepare a trial balance of Nepal Store for the year ended 31st Chaitra 2074 from the following particulars: [5] Capital Rs. 5,00,000 General reserve Rs. 60,000 Patent right 1,50,000 Customers. 1,60,000 Dividend income 30,000 Loan given 3,20,000 Purchases 3,60,000 [Ans : Total Rs. 9,90,000] Sales 4,00,000 328 Office Management and Accountancy

12. Prepare a trading account of Januka & Sisters Company for the year ended 31st Chaitra 2017 from the following particulars : [5] Beginning inventory Rs. 1,20,000 Closing stock Rs. 1,68,000 Purchases 2,76,000 Wages 48,000 Sales 4,80,000 Factory rent & rates 47,000 Return inward 20,000 Carriage inward 12,000 [Ans: Gross profit Rs. 1,25,000] 13. From the following particulars of Danphe Construction Company, prepare a profit and loss account as on 31st Ashadh 2074 : [5] Gross profit Rs.1 ,75,000 Audit fees Rs. 15,000 Rent from tenant 25,000 Sale of scrap 10,000 Discount allowed 12,500 Interest on loan 5,000 Salaries 65,000 Printing 28,000 [Ans: Net profit Rs. 51,500] Group ‘C’ Give long answer to the following questions: [3×10=30] 14. What is insurance? Write any two primary functions of insurance and explain any four types of life insurance. [1+1+8] 15. Prepare journal vouchers [AGF No 10) from the following transactions of Tax Office, Saptari : [10] a. Shrawan 2 Received initial imprest fund of Rs. 4,50,000 through Rastriya Banijya Bank. b. Shrawan 5 Paid telephone charges of Rs. 10,000 to Nepal Telecom Office through cheque. c. Shrawan 18 An advance of Rs. 40,000 paid to Section Officer Miss Anupama Khanal for buying a computer through cheque. d. Shrawan 20 Salary for the month Rs. 88,000 (including provident fund) and local allowance Rs. 6,000 has been distributed after deducting provident fund Rs. 16,000 and income tax Rs. 4,000 through cheque. e. Shrawan 30 Section Officer Miss Anupama Khanal submitted the expenditure bill of Rs. 35,000 and pay- in- slip for the balance amount and requested for advance clearance. 16. The following transactions were extracted from the record of a government office: Budget head/sub-head Annual budget Expenditure of Balance of Rs. Magh Rs. budget Rs. Salary..................................................... 80,000 6,000 34,000 Water and electricity charges............. 30,000 2,000 15,000 Other rent.............................................. 40,000 3,000 19,000 Uniform................................................. 25,000 15,000 Vehicles.................................................. 1,00,000 - 30,000 Fuel for other purpose......................... 36,000 10,000 15,000 3,000 Total....................................................... 3,11,000 24,000 1,28,000 Additional information: a) The debit column and credit column of bank cash book shows Rs. 7,000 and Rs. 3,000 respectively. b) Balance in petty cash fund Rs. 300. SeEeEMMooddeellQQuueessttioionnssSSeettss 329

c) Bank balance Rs. 2,700 Required: Statement of expenditure showing: [3] a) Total expenditure upto Magh [3] b) Total release upto Magh [2] c) Net expenditure [2] d) Total revolving fund received [Ans: a) Rs. 1,83,000 b) Rs. 1,59,000 c) Rs. 1,79,000 d) Rs. 1,86,000] Set 5 Group A (5×1=5) Give answer of the following questions in one sentence: 1. When did Nepal get the membership of WTO? 2. Write the full form of ABBS. 3. Write any two examples of indirect income. 4. When was new accounting forms brought into use under the recommendation of the Auditor General? 5. Write the name of monthly statement which is made provision under AGF No. 9 and AGF No. 14. Group B Write short answer of the following questions: [8×5=40] 6. What is proposal? Write any two similarities and three differences between ordinary proposal and special proposal. [1+1+3] 7. What is trade? Explain any four means of payment used in trade. [1+4] 8. What is geographical filing? Write its two advantages and two disadvantages. [1+2+2] 9. Describe the importance of audit in government offices. [5] 10. What is budget sheet? Write any four differences between bank cash book and budget sheet. [1+4] 11. Prepare a trial balance of Bipana Trading Concern as on 31st December 2017 from the following particulars: [5] Capital Rs.5,20,000 Freehold premises Rs. 3,60,000 Bank loan 40,000 Drawing 40,000 Purchases 6,00,000 Depreciation 50,000 Suppliers 50,000 Sales 4,40,000 [Ans: Total Rs. 10,50,000] 12. From the following particulars, prepare a profit and loss account of Laxmi Enterprises as on 31st Chaitra 2074: [5] Gross profit Rs. 2,10,000 Interest on investment Rs. 45,000 Rent received 21,000 Free sample distribution 20,000 Bad debts 69,000 Discount on purchase 24,000 Salesman commission 30,000 Trade expenses 45,000 [Ans: Net profit Rs. 96,000] 330 Office Management and Accountancy

13. Prepare a balance sheet of New Nepal Company, Ilam from the following particulars as on 31st June 2017 : [5] Building Rs. 2,25,000 Capital Rs. 4,50,000 Bills payable 60,000 Net loss 30,000 Trade mark 75,000 Wages due 70,000 Accrued income 50,000 Furniture & fitting 2,00,000 [Ans: Total Rs. 5,50,000] Group C [3×10=30] Give long answer of the following questions: 14. What is cheque? Mention the parties involved in cheque and also explain the types of cheque. [2+2+6] 15. Prepare journal vouchers of District Health Office, Kaski from the following transactions : [10] a) 2074 Kartik 2 Received a bank order of Rs. 3,00,000 and budget release order for Rs. 2,30,000 for the actual expenditure of Ashwin. b) 2074 Kartik 8 A cheque of Rs. 10,000 was issued for the payment of communication charges. c) 2074 Kartik 15 Section Officer Mr. Ashok Basnet returned a bank voucher of Rs. 25,000 to office which was taken for purchasing food materials and cleared his advance accordingly. d) 2074 Kartik 26 Following petty expenses were reimbursed through cheque: Tea & coffee Rs. 250 Electricity changes Rs.350 Internet expenses Rs. 300 Stationery Rs. 100 e) 2074 Kartik 30 Salary for the month Rs. 90,000 (excluding PF) and dearness allowance Rs. 12,000 has been distributed through cheque after deducting provident fund as per rule and citizen investment fund of Rs. 6,000. 16. Develop bank cash book from the following transactions of District Land Reform Office, Solukhumbu: [10] a) 2074/08/05 Bank balance Rs. 1,00,000 b) 2074/08/10 Received bank order and budget release order of Rs. 2,50,000 for the actual expenditure of last month. c) 2074/08/15 Established petty cash fund of Rs. 2,000 in favour of Petty Cashier Miss Rama Khatiwada through cheque No 24250. d) 2074/08/20 An advance of Rs. 25,000 is paid to Section Officer Mr. Himal Chaudhary for buying office furniture through cheque No 24251 e) 2074/08/25 Paid Rs. 15,000 to Balaju Garments through cheque No 24252 for buying uniform to staffs. f) 2074/08/30 Out of total salary Rs. 66,000(including provident fund) and local allowance Rs. 10,000, deducted provident fund Rs. 12,000 and income tax Rs. 5,000 and balances were distributed through cheque. [ Ans: Bank balance Rs. 2,46,000] SeEeEMMooddeellQQuueessttioionnssSSeettss 331

Set 6 Group A (5×1=5) Give answer of the following questions in one sentence: 1. Write the full form of WTO. 2. Which is the firstly established central bank in the world? 3. How is net profit of the business adjusted in balance sheet? 4. Which institution does the final audit of operating level government offices? 5. Write the name of form which is made provision under AGF No 8. 8×5=40 Group B Give short answer of the following questions. 6. What is meant by resolution? Describe its types with suitable examples. (1+4) 7. What is numerical filing? Mention its four advantages and four disadvantages. (1+2+2) 8. What is World Trade Organization? Write its four functions. (5) 9. Draft a trial balance of Nepal Wool House , Lalitpur at the end of fiscal year 2074 based on the following particulars. (5) Land & building Rs.2,65,000 Beginning inventory Rs.62,500 Purchases 1,30,000 Sales 2,22,750 Bank overdraft 35,000 Salaries and wages 45,000 Long- term loan 44,750 Proprietor’s capital 2,00,000 [Ans: Total Rs.5,02,500] 10. Prepare a balance sheet of Ramailo Traders, Nuwakot on the basis of following particulars as on 31st Ashadh 2074. (5) Capital Rs.5,00,000 Bankers Rs.1,50,000 Marketable securities 50,000 Net profit 75,000 Cash in hand 80,000 Investment 4,70,000 Reserve fund 65,000 Receivables 1,90,000 [Ans.: Total Rs7,90,000] 11. Determine the gross profit or gross loss of Sathi Traders from the following particulars as on 31st Chaitra . 2074. (5) Opening stock Rs.50,000 Store consumed Rs.25,000 Purchases 2,50,000 Productive wages 45,000 Stock at the end 60,000 Factory rent 60,000 Sales 5,58,000 Return from customers 8,000 [Ans.: Gross profit Rs1,80,000] 12. Define audit and write any four differences between internal audit and final audit. (1+4) 13. What is budget sheet? Mention its any six usefulness for government offices. (1+4) 332 Office Management and Accountancy

Group C 3x10=30 Give long answer of the following questions. 14. What is commercial bank? Name any two commercial bank of Nepal and describe their any six functions. (2+1+7) 15. Prepare AGF No 10 of Internal Revenue Office, Khotang from the following transactions for the month of Magh, 2074. (10) a) Magh 3 Received bank order of Rs. 4,50,000 for the previous month’s expenditure Rs. 3,00,000 b) Magh 10 An advance of Rs. 25,000 is paid to Section Officer Mr. Ramakanta Chaudhary for travelling expenses through cheque No 444567. c) Magh 15 Bought a computer of Rs. 50,000 and paid through cheque No 444568. d) Magh 25 Travelling expenses advance of Mr Ramakanta Chaudhary cleared on the basis of expenditure bill of Rs. 20,000 and pay in slip for the balance amount . e) Magh 29 Salary Rs. 99,000 (including PF) and dearness allowance Rs. 10,000 distributed by cheque No 444569 deducting therefrom Rs. 18,000 as provident fund and Rs. 6,000 as income tax. 16. Following are the transactions of District Land Reform Office, Solukhumbu: a) 2074/05/05 Bank balance Rs.2,00,000 b) 2074/05/10 Established petty cash fund of 2,000 through cheque No. 682530 in favour of Petty Cashier Miss Ajanabee Bhandari. c) 2074/05/15 Issued cheque No 682531 of Rs. 20,000 as an advance to Mrs Bina Shrestha (Section Officer) for buying office furniture. d) 2074/05/20 Paid Rs. 4,500 to City Fuel Centre, Balaju through cheque No 682532 for fueling to Maruti Car numbered Ba 2 Jha 2684. e) 2074/05/22 Issued a cheque No 682533 of Rs. 2,000 to Section Officer Mrs. Bina Shrestha for clearance of her furniture advance as she submitted the bill of Rs. 22,000. f) 2074/05/30 Total salary for the month Rs. 33,000 has been distributed after deducting provident fund Rs. 6,000 through cheque No 682534. Required: Bank cash book [Ans: Bank balance Rs.1,44,500] Set 7 Group A (5×1=5) Give answer of the following questions in one sentence: 1. Write the full form of SAPTA. 2. Give the meaning of crossed cheque. 3. How is closing stock valued in the business firm? 4. Under which ministry does the Office of Finance Comptroller General remain? 5. Write the name of form which is made provision under AGF No 5. See Model Questions Sets 333

Group B Give short answer of the following questions. 8x5=40 6. Why is memo prepared? Write any six considerable points for drafting it. (1+4) 7. Introduce subjective filing and mention its four pros and four cons. (1+2+2) 8. What is foreign trade? Write any two similarities and four dissimilarities between home trade and foreign trade. (2+1+2) 9. You are required to prepare a trial balance of Fashion Home Traders from the following ledger balances as on 31st December 2017. (5) Customers Rs.2,68,000 Purchases Rs. 2,50,000 Suppliers 1,40,500 Return out 10,000 Bankers 85,000 Sales revenue Machinery 3,12,500 Capital 3,75,000 2,20,000 [Ans: Total Rs. 8,30,500] 10. Draft a balance sheet of Sukanya Company, Chabahil, Kathmandu on the basis of following particulars as on 31st December 2017. (5) Capital Rs. 6,00,000 Land & building Rs.3,00,000 Goodwill 1,60,000 Net loss 30,000 Loan received 2,00,000 General reserve Unearned income 30,000 Machine 1,20,000 4,60,000 [Ans: Total Rs. 9,20,000] 11. Prepare a profit and loss account of Sanu Traders from the following particulars as on 31st Chaitra 2074. (5) Gross profit Rs.3,60,000 Bank charges Rs.11,000 Dividend receipt 25,000 Interest on saving 18,000 Salary and wages 66,000 Depreciation 24,000 Bonus distributed 20,000 Advertisement 30,000 [Ans: Net profit Rs. 2,52,000] 12. What is new accounting system? Explain the reasons for continuous use of this accounting system in government offices. (1+5) 13. Why is bank cash book prepared? Explain the effect of transactions in bank cash book while clearing advance for excess expenditure. (2+3) Group C 3x10=30 Give long answer of the following questions. 14. What is central bank? Name the central bank of Nepal and describe its any seven functions. (2+1+7) 15. From the following transactions of District Irrigation Office Palpa, prepare journal 334 Office Management and Accountancy

vouchers. (10) a) 2074/4/01 An order was received from the office of the treasury and comptroller for initial revolving fund of Rs. 1,50,000 through bank transfer. b) 2074/4/12 Paid Rs. 20,000 to National Computer for purchase of computer through cheque no. 002 c) 2074/4/17 Advance for Vehicle of Rs. 25,000 was given to Section Officer Mr. Dilip Parajuli through cheque no. 003. d) 2074/4/25 Following expenses made from petty cash fund were reimbursed through cheque no 004 Rs. 50 for communication, Rs. 150 for electricity and Rs. 200 for tea and coffee. e) 2074/4/30 Issued a cheque of Rs.51,000 for distribution of salary after deducting provident fund Rs. 12,000 and income tax Rs. 3,000 16. You are supplied the following information of District Irrigation Office, Rasuwa: B.H. Budget head Annual Budget Expenditure Expenditure No. (Rs) up to Magh (Rs.) of Falgun ( Rs.) Salary 21111 House rent 7,20,000 5,20,000 50,000 22121 Fuel 1,20,000 80,000 12,000 22211 Miscellaneous 1,92,000 14,000 22711 Furniture 1,00,000 1,40,000 10,000 29311 Machinery 2,00,000 50,000 29511 1,80,000 - 1,00,000 6,000 1,40,000 Additional information: a. Revolving fund release Rs.12,00,000 b. Cash balance Rs. 1,000 c. Furniture advance of Rs. 6,000 to Miss Anamika remains uncleared. d. Loan to be paid Rs. 20,000 Required : Statement of expenditure of Falgun showing: a) Revolving fund balance (2) b) Budget release in each head (2) c) Bank balance (3) d) Net expenditure (1) e) Balance of budget in each head (2) [Ans: a) Rs.1,70,000 c) Rs. 97,000 d) Rs.11,16,000] See Model Questions Sets 335

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