Note on Journal Voucher for Miscellaneous Transactions

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The transactions other than budget expenditure and advance given and cleared are called miscellaneous transactions. These journal vouchers do not effect on budget expenditure. The following are the miscellaneous transactions:

  1. Revolving/ Imprest fund release
  2. Budget release
  3. Petty cash fund
  4. Security deposit
  5. Loan
  6. Budget transfer
  7. Distribution of salary and deductions made on it

Revolving/ Imprest fund release

Imprest/ Revolving fund release is the modern system of budget release newly introduced by the government. According to this system, at the beginning of each fiscal year, the office of the treasury and comptroller creates a fund to release the budget for all operating level offices. Each operating level offices receives an amount equal to the 1/6thof its last year's total budget expenditure at the beginning of each fiscal year as revolving or imprest fund release to spend on different heads of expenditure during the month of Shrawan.

The following journal voucher is passed for imprest fund release:
Dr. Nepal Rastra Bank
Revolving/ Imprest Fund Release
(Being initial revolving fund received)

Example:

On Bhadra 05, the District Education Office Chitwan received a bank order letter of Rs. 3,00,000 as an initial revolving fund.

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

3,00,000

Cr. Initial Revolving Fund

3,00,000

(Being initial revolving fund received.)

Budget release

Under present revised budget release system, each operating level office receives budget release order equals to the actual expenditure of the previous month. Hence, the budget release is based on the imprest system. For getting the budget release order, the operating level office should produce the necessary documents to District Treasury Control Office within the first week of each month. The following are the three conditions of budget release:

  1. When the amount of budget release order and bank order is equal

    Dr. Nepal Rastra Bank
    Cr. Budget Release
    (Being budget release order and bank order received)

    Example:

    District Education Office, Kathmandu received bank order of Rs. 2,00,000 and budget release order of 2,000,000 on Baishak 29 for the actual expenditure of Chaitra.

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Nepal Rastra Bank

    2,00,000

    Cr. Budget Release

    2,00,000

    (Being bank order and budget release order received.)

  2. When the amount of budget release order is less than the bank order

    Dr. Nepal Rastra Bank
    Cr. Revolving/ Imprest Fund
    Cr. Budget Release
    (Being budget release order and bank order received)

    Example:

    On Chaitra 7, District Road Maintainance Office, Lalitpur received a bank order for Rs. 5,00,000 and a budget release order of Rs. 3,50,000 for the actual expenditure of last month.

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Nepal Rastra Bank

    5,00,000

    Cr. Revolving Fund

    1,50,000

    Cr. Budget Release

    3,50,000

    (Being bank order and budget release order received for the month of Baishak.)

  3. When the amount of budget release order is more than the bank order

    Dr. Nepal Rastra Bank
    Dr. Revolving/ Imprest Fund
    Cr. Budget Release
    (Being budget release order and bank order received)

    Example:

    On 15th Jestha, District Irrigation Office, Rautahat received a bank order for Rs. 3,00,000 and a budget release order for Rs. 3,50,000 for the actual expenditure of the last month.

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Nepal Rastra Bank

    3,00,000

    Dr. Revolving Fund

    50,000

    Cr. Budget Release

    3,50,000

    (Being bank order and budget release order received.)

Establishment and reimbursement of petty cash fund

Petty cash fund is created in government offices for making the payment of a small amount of expenditures. Such small amount of expenditures like postage, tea, newspapers, bus fare, etc. should be paid frequently by an office. It is impracticable and inconvenient to pay such small amount of expenditures through a bank. So, to pay for such expenses, the government office establishes a fund, which is known as petty cash fund. The amount of petty cash fund depends upon the nature and volume of petty transactions.

The following journal voucher is prepared at the time of establishment of petty cash fund and at the time of it reimbursement:

  1. When petty cash fund is established:

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

    Example:

    The District Education Office, Kathmandu created a petty cash fund of Rs. 300 on Magh 10.

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Petty cash fund

    300

    Cr. Nepal Rastra Bank

    300

    (Being petty cash fund established.)

  2. When petty cash fund is reimbursed:

    Dr. BE (Head)
    Dr. BE (Head)
    Cr. Nepal Rastra Bank
    (Being petty cash fund reimbursed)

    Example:

    The petty cashier of District Education Office, Kathmandu reported the following expenses on 30th Ashwin for the reimbursement:

    Taxi Fare Rs. 60

    Wages Rs. 40

    Postal Stamp Rs. 15

    Newspapers Rs. 65

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. B.E. Travelling Expenses

    22612

    60

    Dr. B.E. Salary

    21111

    40

    Dr. B.E. Office Expenses

    22311

    15

    Dr. B.E. Office Expenses

    22311

    65

    Cr. Nepal Rastra Bank

    180

    (Being petty expenses reimbursed.)

  • The transactions other than budget expenditure and advance given and cleared are called miscellaneous transactions. 
  • Imprest/ Revolving fund release is the modern system of budget release newly introduced by the government. 
  • Under present revised budget release system, each operating level office receives budget release order equals to the actual expenditure of the previous month. 
  • Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services.
.

Very Short Questions

Imprest/ Revolving fund release is the modern system of budget release newly introduced by the government. According to this system, at the beginning of each fiscal year, the office of the treasury and comptroller creates a fund to release the budget for all operating level offices. Each operating level offices receives an amount equal to the 1/6thof its last year's total budget expenditure at the beginning of each fiscal year as revolving or imprest fund release to spend on different heads of expenditure during the month of Shrawan.

The following journal voucher is passed for imprest fund release:
Dr. Nepal Rastra Bank
Cr. Revolving/ Imprest Fund Release
(Being initial revolving fund received)

Under present revised budget release system, each operating level office receives budget release order equals to the actual expenditure of the previous month. Hence, the budget release is based on the imprest system. For getting the budget release order, the operating level office should produce the necessary documents to District Treasury Control Office within the first week of each month. The following are the three conditions of budget release:

  1. When the amount of budget release order and bank order is equal
    Dr. Nepal Rastra Bank
    Cr. Budget Release
    (Being budget release order and bank order received)

  2. When the amount of budget release order is less than the bank order
    Dr. Nepal Rastra Bank
    Cr. Revolving/ Imprest Fund
    Cr. Budget Release
    (Being budget release order and bank order received)

  3. When the amount of budget release order is more than the bank order
    Dr. Nepal Rastra Bank
    Dr. Revolving/ Imprest Fund
    Cr. Budget Release
    (Being budget release order and bank order received)

Petty cash fund is created in government offices for making the payment of a small amount of expenditures. Such small amount of expenditures like postage, tea, newspapers, bus fare etc. should be paid frequently by an office. It is impracticable and inconvenient to pay such small amount of expenditures through a bank. So, to pay for such expenses, the government office establishes a fund, which is known as petty cash fund. The amount of petty cash fund depends upon the nature and volume of petty transactions.

The following journal voucher is prepared at the time of establishment of petty cash fund and at the time of it reimbursement:

  1. When petty cash fund is established:
    Dr. Petty Cash Fund
    Cr. Nepal Rastra Bank
    (Being petty cash fund established)
  2. When petty cash fund is reimbursed:
    Dr. BE (Head)
    Dr. BE (Head)
    Cr. Nepal Rastra Bank
    (Being petty cash fund reimbursed)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

5,00,000

Cr. Revolving fund released

5,00,000

(Being bank order received as a revolving fund.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Petty Cash Fund

500

Cr. Nepal Rastra Bank

500

(Being petty cash fund established.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

8,00,000

Cr. Revolving Fund

8,00,000

(Being bank order received as as revolving fund through Nepal Rastra Bank transfer.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

10,00,000

Cr. Revolving fund release

10,00,000

(Being bank order received as revolving fund release.)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

9,00,000

Cr. Revolving fund release

9,00,000

(Being bank order received as revolving release)

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. Nepal Rastra Bank

10,00,000

Cr. Revolving fund release

10,00,000

(Being bank order received as revolving fund through RB Bank transfer.)

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  • The transactions other than ______ are called miscellaneous transactions.

    all the options are correct
    advance given
    advance cleared
    budget expenditure
  • Each operating level offices receives an amount equal to the ______ of its last year's total budget expenditure at the beginning of each fiscal year as revolving or imprest fund release.

    5/6th


    3/5th


    1/6th


    1/4th


  • The budget release is based on the ______ system.

    operating
    balance
    control
    imprest
  • For getting the budget release order, the operating level office should produce the necessary documents to ______ within the first week of each month.

    District Education Office


    District Forestry Office


    District Treasury Control Office


    Office of the Auditor General


  • The amount of petty cash fund depends upon the nature and volume of ______.

    none of the options are correct
    credit transactions
    cash transactions
    petty transactions
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Rakesh bhujel

Coke comes under which budget head in journal voucher


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