Note on Security Deposit, Loan and Budget Transfer

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Security deposit

Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services. Generally, 5% of the contract amount is required to be deposited as security deposit by the contractor. Such deposit will be refunded after the completion of the concerned job. The journal vouchers relating to security deposit are as follows:

  • When security deposit is received
    Dr. Nepal Rastra Bank
    Cr. ....... Security deposit
    (Being security deposit received from ......)

    Example:

    Received from Suresh and Brothers of Rs. 50,000 from Nimesh and Co. of Rs. 60,000 and from Sri and Co. of Rs. 40,000 for security deposits on 05-12 against the amount of tender.

    Government of Nepal

    .......... Office/Dept/Ministry

    Journal Voucher

    AGF No. 10

    JV No.

    Date: 05-12

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Nepal Rastra Bank

    1,50,000

    Cr. Suresh and Brothers’ security deposit

    50,000

    Cr. Nimesh and Co’ security deposit

    60,000

    Cr. Sri and Co’s security deposit

    40,000

    (Being security deposits received from Suresh and Brothers, Nimesh and Co. and Sri and Co.)

    Receipt No:

    Amount received: One lakh fifty thousand only.

    Submitted by: Mr. ABC

    Post: Accountant

    Date: 05-12

    Cheque No:

    Cheque amount:

    Approved by: Mr. XYZ

    Post: Office head

    Date: 05-12

  • When security deposit is refunded
    Dr. .......... Security deposit
    Cr. Nepal Rastra Bank
    (Being security deposit refunded to ..........)

    Example:

    The tenders submitted by Suresh and Brothers and Nimesh Co. were rejected and the security deposit amounts were refunded on 05-20. The amount of security deposit refunded to Sri. and Co. after completion of the job on 07-07.

    Government of Nepal

    .......... Office/Dept/Ministry

    Journal Voucher

    AGF No. 10

    JV No.

    Date: 07-07

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Suresh and Brothers’ security deposit a/c

    50,000

    Dr. Nimesh and Co’ security deposit a/c

    60,000

    Cr. Nepal Rastra Bank

    1,10,000

    (Being security deposits amount refunded due to rejection of tender.)

    Receipt No:

    Amount received:

    Submitted by: Mr. ABC

    Post: Accountant

    Date: 07-07

    Cheque No:

    Cheque amount: One lakh ten thousand only.

    Approved by: Mr. XYZ

    Post: Office head

    Date: 07-07

    Government of Nepal

    .......... Office/Dept/Ministry

    Journal Voucher

    AGF No. 10

    JV No.

    Date: 07-07

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Sri and Co’s security deposit

    40,000

    Cr. Nepal Rastra Bank

    40,000

    (Being security deposit refunded after completion of the job)

    Receipt No:

    Amount received:

    Submitted by: Mr. ABC

    Post: Accountant

    Date: 07-07

    Cheque No:

    Cheque amount: Forty thousand only.

    Approved by: Mr. XYZ

    Post: Office head

    Date: 07-07

Loan

The government office can receive a loan from other offices. It can also provide a loan to other offices by taking the approval from the treasury and comptroller’s office. The journal vouchers for receiving and granting loans are as follows:

  • When the loan is received
    Dr. Nepal Rastra Bank
    Cr. …………. Office loan a/c
    (Being loan received from ……… office)

    Example:

    On Magh 10, District Forest Office, Chitwan, received a cheque of Rs. 50,000 from District Education Office, Chitwan as a loan.

    Government of Nepal

    District Forest Office, Chitwan

    Journal Voucher

    AGF No. 10

    JV No.

    Date: 10-10

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. Nepal Rastra Bank

    50,000

    Cr. District Education Office loan a/c

    50,000

    (Being loan received from District Education Office, Chitwan as a loan.)

    Receipt No:

    Amount received: Fifty thousand only.

    Submitted by: Mr. ABC

    Post: Accountant

    Date: 10-10

    Cheque No:

    Cheque amount:

    Approved by: Mr. XYZ

    Post: Office head

    Date: 10-10

  • When loan is given or re-paid:
    Dr. …………. office loan a/c
    Cr. Nepal Rastra Bank
    (Being loan given/ paid to ……….. office)

    Example:

    On Magh 14, a loan of Rs. 80,000 was provided to District Agriculture Office, Chitwan.

    Government of Nepal

    District Agriculture Office, Chitwan

    Journal Voucher

    AGF No. 10

    JV No.

    Date: 10-14

    Code No.

    Particulars

    LF

    BH No.

    Debit Rs.

    Credit Rs.

    Dr. District Agriculture Office loan a/c

    80,000

    Cr. Nepal Rastra Bank

    80,000

    (Being loan provided to District Agriculture Office, Chitwan.)

    Receipt No:

    Amount received:

    Submitted by: Mr. ABC

    Post: Accountant

    Date: 10-14

    Cheque No:

    Cheque amount: Eighty thousand only.

    Approved by: Mr. XYZ

    Post: Office head

    Date: 10-14

Budget Transfer

The budget transfer is the act of transferring an amount from one budget head to another. Sometimes, there may be a shortage of budget in one budget head and a surplus in another budget head. The surplus amount of the budget can be transferred with the permission of the Ministry of Finance in another budget head. The budget transfer is of two types:

  1. Intra-Office Budget Transfer

    If the budget head is transferred to another budget head within the office, then it is called intra-office budget transfer. The following journal voucher is passed for intra-office budget transfer:
    Dr. B.A. ………Budget head (the budget head from which amount has been transferred)
    Cr. B.A. ………Budget head (the budget head to which amount has been transferred)

  2. Inter-Office Budget Transfer

    If the budget head is transferred from one office to another office, then it is called inter-office budget transfer. The following journal voucher is passed for inter-office budget transfer:
    • Journal voucher for receiving the budget transfer:
      Dr. Nepal Rastra Bank
      Cr. Budget release (Budget head)
    • Journal voucher for providing the budget transfer:
      Dr. Budget release (Budget head)
      Cr. Nepal Rastra Bank

Example:

On Baishak 29, District Irrigation Office, Kathmandu, transferred Rs. 25,000 from the budget head fuel to the budget head travelling expenses.

Government of Nepal

District Irrigation Office, Kathmandu

Journal Voucher

AGF No. 10

JV No.

Date: 01-29

Code No.

Particulars

LF

BH No.

Debit Rs.

Credit Rs.

Dr. B.A. Fuel

22211

25,000

Cr. B.A. Travelling Expenses

22612

25,000

(Being budget transferred from fuel to travelling expenses)

Receipt No:

Amount received:

Submitted by: Mr. ABC

Post: Accountant

Date: 01-29

Cheque No:

Cheque amount:

Approved by: Mr. XYZ

Post: Office head

Date: 01-29

  • Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services. 
  • The government office can receive loan from other offices.
  • Budget transfer is the act of transferring an amount from one budget head to another.
  • If the budget head is transferred to another budget head within the office, then it is called intra-office budget transfer. 
  • If the budget head is transferred from one office to another office, then it is called inter-office budget transfer. 
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Very Short Questions

Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services. Generally, 5% of the contract amount is required to be deposited as security deposit by the contractor. Such deposit will be refunded after te completion of the concerned job.

The journal vouchers relating to security deposit are as follows:

  1. When security deposit is received
    Dr. Nepal Rastra Bank
    Cr. ....... Security deposit
    (Being security deposit received from ......)

  2. When security deposit is refunded
    Dr. .......... Security deposit
    Cr. Nepal Rastra Bank
    (Being security deposit refunded to ..........)

The government office can receive loan from other offices. It can also provide loan to other offices by taking the approval from the treasury and comptroller’s office.

The journal vouchers for receiving and granting loans are as follows:

  1. When the loan is received
    Dr. Nepal Rastra Bank
    Cr. …………. Office loan a/c
    (Being loan received from ……… office)

  2. When loan is given or repaid:
    Dr. …………. office loan a/c
    Cr. Nepal Rastra Bank
    (Being loan given/ paid to ……….. office)

Budget transfer is the act of transferring an amount from one budget head to another. Sometimes, there may be a shortage of budget in one budget head and a surplus in another budget head. The surplus amount of the budget can be transferred with the permission of the Ministry of Finance in another budget head. The budget transfer is of two types:

  1. Intra-Office Budget Transfer

    If the budget head is transferred to another budget head within the office, then it is called intra-office budget transfer.
    The following journal voucher is passed for intra-office budget transfer:
    Dr. B.A. ………Budget head (the budget head from which amount has been transferred)
    Cr. B.A. ………Budget head (the budget head to which amount has been transferred)
  2. Inter-Office Budget Transfer

    If the budget head is transferred from one office to another office, then it is called inter-office budget transfer.

    The following journal voucher is passed for inter-office budget transfer:
    • Journal voucher for receiving the budget transfer:
      Dr. Nepal Rastra Bank
      Cr. Budget release (Budget head)
    • Journal voucher for providing the budget transfer:
      Dr. Budget release (Budget head)
      Cr. Nepal Rastra Bank

0%
  • ______ is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services.

    Salary
    Loan
    Security deposit
    Budget transfer
  • Generally, ______ of the contract amount is required to be deposited as security deposit by the contractor.

    5%


    1%


    10%


    0%


  • ______ is the act of transferring an amount from one budget head to another.

    Budget transfer


    Loan


    Security deposit


    Salary


  • The surplus amount of the budget can be transferred with the permission of the ______ in another budget head.

    Ministry of Education


    Office of the Auditor General


    Ministry of Finance


    Ministry of Sport


  • If the budget head is transferred to another budget head within the office, then it is called ______.

    intra-fund transfer
    intra-office budget transfer
    inter-office budget transfer
    inter-fund transfer
  • If the budget head is transferred from one office to another office, then it is called ______.

    intra-office budget transfer


    intra-fund transfer


    inter-office budget transfer


    inter-fund transfer


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