Note on Journal Voucher for Budget Expenditure and Annual Closing

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Journal voucher for budget expenditure

The journal voucher which is prepared to record the budget expenditure of government is called journal voucher for budget expenditure. It is also known as general journal voucher. This type of voucher is prepared when the payment is made on the head of budget expenditure. To represent budget expenditure, the word B.E. is mentioned before the title of an expenditure on the journal voucher.

Dr. BE (Name of the budget head)

Dr. BE (Name of the budget head)

Cr. Nepal Rastra Bank

(Being payment made for ……. by cheque)

Example:

The District Health Office, Kathmandu purchase machinery equipment for Rs. 50,000 and payment were made through cheque.

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. BE Machinery Equipment

29511

50,000

Cr. Nepal Rastra Bank

50,000

(Being machinery equipment purchased and payment made through cheque)

Journal Voucher for the Annual Closing

The process of closing different accounts at the end of the fiscal year is called annual closing of accounts. The following journal vouchers are passed for annual closing:

  • Closing Advance Account
    If the advance given under different heads is not cleared till the end of the fiscal year, such advances should be cleared artificially treating as expenses equal to the advance. The following journal voucher is passed for an artificial clearance of advance:
    Dr. B.E. The name of the budget head
    Cr. The name and post of the person
    Clearance of advance
    (Being advance cleared artificially)

  • Closing Petty Cash Fund
    The petty cash fund should be closed at the end of the fiscal year by passing the following journal voucher:
    Dr. Nepal Rastra Bank (With unspent amount of fund)
    Dr. Budget head
    Cr. Petty cash fund
    (Being petty cash fund closed)

  • Closing of Revolving/ Imprest Fund Account and Bank Account
    The bank account is closed by issuing a cheque for the unspent amount of revolving fund. Such unspent amount is deposited in the consolidated fund. Such deposit of unspent imprest amount will close the bank account and revolving fund account it is so because the unspent budget of the current fiscal year under regular as well as development budget lapses at the end of the fiscal year. The following journal voucher is passed for the closing of revolving fund:
    Dr. Revolving fund
    Cr. Budget release
    Cr. Nepal Rastra Bank
    (Being revolving fund and bank account closed)

  • Closing of Budget Release and Budget Expenditure
    A closing entry is required to close the total budget expenditures and total budget release accounts. For this, the total amount of budget expenditures should be matched with the total amount of budget release. The following journal voucher is passed to close the total budget expenditures and total budget release accounts:
    Dr. Total budget release account
    Cr. Total budget expenditures account
    (Being closing of annual accounts)

  • The journal voucher which is prepared to record the transactions relating to budget expenditure is called journal voucher for budget expenditure. 
  • The budget for the government is approved by the parliament on an annual basis.
  • The process of closing different accounts at the end of the fiscal year is called annual closing of accounts. 
  • If the advance given under different heads is not cleared till the end of the fiscal year, such advances should be cleared artificially treating as expenses equal to the advance. 
  • A closing entry is required to close the total budget expenditures and total budget release accounts. 
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Very Short Questions

The journal voucher which is prepared to record the transactions relating to budget expenditure is called journal voucher for the budget expenditure. It is also known as a general journal voucher. This is commonly used journal voucher in government offices. When the payment is made on any head of budget expenditure, these types of journal voucher are prepared. It records the payment for budget expenditures like salaries, allowance, office expenses, telephone charges etc. While preparing journal voucher, the budget head or subhead should be debited. All the payments are assumed to be made through Nepal Rastra Bank and hence Nepal Rastra Bank should be credited. The related budget head number should be mentioned in the concerned column and a brief narration should be given for the explanation of each transaction. The journal voucher for budget expenditure is passed as follows:

Dr. BE (Name of the budget head)

Cr. Nepal Rastra Bank

(Being payment made for ……. by cheque)

The budget for the government is approved by the parliament on an annual basis. The process of closing different accounts at the end of the fiscal year is called annual closing of accounts. The following journal vouchers are passed for annual closing:

  1. Closing Advance Account
    If the advance given under different heads is not cleared till the end of the fiscal year, such advances should be cleared artificially treating as expenses equal to the advance. The following journal voucher is passed for an artificial clearance of advance:
    Dr. B.E. The name of the budget head
    Cr. The name and post of the person
    Clearance of advance
    (Being advance cleared artificially)

  2. Closing Petty Cash Fund
    The petty cash fund should be closed at the end of the fiscal year by passing the following journal voucher:
    Dr. Nepal Rastra Bank (With unspent amount of fund)
    Dr. Budget head
    Cr. Petty cash fund
    (Being petty cash fund closed)

  3. Closing of Revolving/ Imprest Fund Account and Bank Account
    The bank account is closed by issuing a cheque for the unspent amount of revolving fund. Such unspent amount is deposited in the consolidated fund. Such deposit of unspent imprest amount will close the bank account and revolving fund account it is so because the unspent budget of the current fiscal year under regular as well as development budget lapses at the end of the fiscal year. The following journal voucher is passed for the closing of revolving fund:
    Dr. Revolving fund
    Cr. Budget release
    Cr. Nepal Rastra Bank
    (Being revolving fund and bank account closed)

  4. Closing of Budget Release and Budget Expenditure
    A closing entry is required to close the total budget expenditures and total budget release accounts. For this, the total amount of budget expenditures should be matched with the total amount of budget release. The following journal voucher is passed to close the total budget expenditures and total budget release accounts:
    Dr. Total budget release account
    Cr. Total budget expenditures account
    (Being closing of annual accounts)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. B.E Computer

29511

25,000

Cr. Nepal Rastra Bank

25,000

(Being paid for computer purchased through cheque no. 00036.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. BE Furniture

29311

15,000

Cr. Nepal Rastra Bank

15,000

(Being paid for furniture purchase through cheque no. 012)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. BE Computer

29511

35,000

Cr. Nepal Rastra Bank

35,000

(Being computer purchased and paid through cheque.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. BE Telephone charge

22142

7,000

Cr. Nepal Rastra Bank

7,000

(Being telephone charge paid through cheque.)



Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. BE Telephone charge

22142

13,000

Cr. Nepal Rastra Bank

13,000

(Being paid for telephone bill through cheque no. 105.)

0%
  • The journal voucher which is prepared to record the transactions relating to budget expenditure is called ______.

    journal voucher for the budget expenditure


    journal voucher for advance transactions


    journal voucher for yearly closing


    journal voucher for miscellaneous transactions


  • The journal voucher for the budget expenditure is also known as a ______.

    advance journal voucher


    general journal voucher


    specific journal voucher


    peculiar journal voucher


  • The journal voucher for the budget expenditure records the payment for budget expenditures like ______.

    allowance


    office expenses


    all the options are correct


    salaries


  • The budget for the government is approved by the parliament on an ______ basis.

    annual
    monthly
    weekly
    daily
  • The process of closing different accounts at the end of the fiscal year is called ______ closing of accounts.

    monthly


    daily


    weekly


    annual


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Roshma Thapa

In the question no 3 we write computer or machinery equipment


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