Note on Levels of New Accounting System

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The accounting system of government offices is classified into two levels under the new accounting system. Those are central level accounting and operating level accounting.

Central Level Accounting
Central Level Accounting

Central Level Accounting

Central Level Accounting system refers to the accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies.Under this accounting, the budget received from the ministry of financial and released to operating level officer in terms of advance basis and cleaning the advances as against their monthly reports are recorded.

The following are the major accounting documents, which are used by the central level offices for the purpose of recording and reporting the transactions:

  1. Journal voucher
  2. Ledger
  3. Subsidiary books
  4. Bank statement
  5. Statement of advance given
  6. Control ledger for the amount deposited into consolidated fund

Operating Level Accounting
Operating Level Accounting

Operating Level Accounting

The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting. Operating level offices receive the budget from central level accounting and make expenditure according to the budget heads.

The following are the major accounting documents, which are used by operating level offices for the purpose of recording and reporting the transactions:

  1. Journal voucher
  2. Bank cash book
  3. Budget sheet
  4. Subsidiary ledger
  5. Statement of expenditures

Differences between Central Level Accounting and Operating Level Accounting.

Bases of differences

Central Level Accounting

Operating Level Accounting

Offices

It is maintained by central level offices.

It is maintained by operating level offices.

Responsibility

They are responsible towards the Ministry of Finance.

They are responsible towards the central level offices.

Forms

Only a few numbers of forms are used under this system.

A larger number of forms are used under this system.

Recording

It records the budget received from the ministry of finance and the release made to operating level offices.

It records the budget received from the central level offices and the expenditures made on different budget heads.

Controlling

It is the accounting for controlling budget.

It is the accounting for executing the budget.

Coverage

It includes the accounting of operating level offices.

It does not include the accounting of operating level offices.

Complexity

It is comparatively simple to prepare.

It is comparatively difficult to prepare.

Central accounts

It helps the Office of the Comptroller to prepare central accounts directly.

It helps the Office of the Comptroller to prepare central accounts indirectly.

Forms Used in New Accounting System

Some of the important accounting forms used under this system is as follows:

  • Journal voucher (AGF No. 10)
  • Cash receipts (AGF No. 11)
  • Cash payment slip (AGF No. 6)
  • Budget sheet (AGF No. 8)
  • Bank cash book (AGF No. 5)
  • Ledger accounts (AGF No. 22)
  • Cash receipt book (AGF No. 23)
  • Statement of Expenditure (AGF No. 13)
  • Monthly report regarding revenue (AGF No. 9)
  • Requisition form for the reimbursement of cash payment (AGF No. 6(A))
  • Monthly report of uncleared advance (AGF No. 14)
  • Statement of bank account (AGF No. 15)
  • Summary of position of fund (AGF No. 16)
  • Statement of budget sheet (AGF No. 17)
  • Statement of outstanding payments (AGF No. 18)
  • Monthly report of security deposit (AGF No. 19)
  • Cash payments and receipts controls (AGF No. 7)
  • Budget requisition form (AGF No. 21)

  • The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as central level accounting.
  • The accounting of central level offices is concerned with the recording the budget received from the Ministry of Finance and the release made to operating level offices.
  • The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting.
  • Operating level offices are responsible towards the central level offices. 
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Very Short Questions

The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as central level accounting. Central level offices are responsible for submitting the financial statements to the ministry of finance and office of the Comptroller General. The accounting of central level offices is concerned with the recording the budget received from the Ministry of Finance and the release made to operating level offices.

The following are the major accounting documents, which are used by the central level offices for the purpose of recording and reporting the transactions:

  1. Journal voucher
  2. Ledger
  3. Subsidiary books
  4. Bank statement
  5. Statement of advance given
  6. Control ledger for the amount deposited into consolidated fund

The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting. Operating level offices are responsible towards the central level offices. Operating level offices have to submit the statement of expenditure to the concerned central level offices.

The following are the major accounting documents, which are used by operating level offices for the purpose of recording and reporting the transactions:

  1. Journal voucher
  2. Bank cash book
  3. Budget sheet
  4. Subsidiary ledger
  5. Statement of expenditures

TRhe differences between central level accounting and operating level accounting are as follows:

Bases of differences

Central Level Accounting

Operating Level Accounting

Offices

It is maintained by central level offices.

It is maintained by operating level offices.

Responsibility

They are responsible towards the Ministry of Finance.

They are responsible towards the central level offices.

Forms

Only a few numbers of forms are used under this system.

A larger number of forms are used under this system.

Recording

It records the budget received from the ministry of finance and the release made to operating level offices.

It records the budget received from the central level offices and the expenditures made on different budget heads.

Controlling

It is the accounting for controlling budget.

It is the accounting for executing the budget.

Coverage

It includes the accounting of operating level offices.

It does not include the accounting of operating level offices.

Complexity

It is comparatively simple to prepare.

It is comparatively difficult to prepare.

Central accounts

It helps the Office of the Comptroller to prepare central accounts directly.

It helps the Office of the Comptroller to prepare central accounts indirectly.

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  • The accounting system of government offices is classified into ______ under the new accounting system.

    two levels


    three levels


    eight level


    five levels


  • The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as ______.

    lower level accounting


    operating level accounting


    central level accounting


    upper level accounting


  • The accounting of central level offices is concerned with the recording the budget received from the ______ and the release made to operating level offices.

    Office of the Auditor General
    Ministry of Sports
    Ministry of Finance
    Ministry of Education
  • The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as ______.

    lower level accounting
    central level accounting
    upper level accounting
    operating level accounting
  • What is the AGF No. of cash receipt book?

    10
    8
    23
    11
  • What is the AGF No. of cash payment slip?

    5
    9
    6
    19
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Which office prepare accounting forms in government office

Which office prepares accounting forms in government office


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Arbin

which office does prepare accounting forms used in government offices?


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