Journal Voucher for Advance Transactions
Subject: Accountancy
Overview
Advance is an amount, which is given to official staff and other parties before receiving goods and services. It is given to perform a specific task. After the completion of such task, the advance amount should be cleared. This note has information about the journal voucher prepared for advance transactions.Journal Voucher for Advance Transactions
Advance is an amount, which is given to official staff and other parties before receiving goods and services. It is given to perform a specific task. After the completion of such task, the advance amount should be cleared. Under new accounting system, the record of advance is made twice as follows:
Journal voucher at the time of giving advance
An advance is given to an official staff or to another party to make expenditure on the related budget head. When the advance is given the party receiving the advance with the related budget head is debited and Nepal Rastra Bank is credited. The journal voucher at the time of giving advance is passed as follows:
Dr. Name and post of the receiver
Advance for ……. (Budget head)
Cr. Nepal Rastra Bank
(Being advance given to Mr. …..for the purchase of ……)
Example:
Advance given to Section Officer, Ms. Sujata Raut for the purchase of vehicle of Rs. 1,00,000.
| Government of Nepal .......... Office/Dept/Ministry Journal Voucher | AGF No. 10 JV No. Date: |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Section Officer, Ms. Sujata Raut | |||||
| Advance for purchase of vehicle | 29411 | 1,00,000 | |||
| Cr. Nepal Rastra Bank | 1,00,000 | ||||
| (Being advance given to SO Mrs. Sujata Raut for the purchase of vehicle) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: | Cheque No: Cheque amount: One lakh only. Approved by: Mr. XYZ Post: Office head Date: |
Journal voucher at the time of clearing advance
The amount of advance, which is given to perform the specific task, should be cleared after its completion. It is cleared after the submission of necessary bills and documents. The amount of expenditure may be equal to the advance, less than the advance or more than the advance amount. The following are the five conditions to clear the advance:
- When the amount of expenditure is equal to the advance
When the amount of bill of expenditure remains equal to the amount of advance given, the following journal voucher is passed for clearing the advance:
Dr. B.E. Name of the Budget Head
Cr. The Name and Post of the person
Clearance of advance for.......
(Being advance for ...... cleared)
Example:Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 1,00,000 and her advance was cleared.
Government of Nepal
.......... Office/Dept/Ministry
Journal Voucher
AGF No. 10
JV No.
Date:
Code No.
Particulars
LF
BH No.
Debit Rs.
Credit Rs.
Dr. BE Vehicle
1,00,000
Cr. Section Officer, Ms. Sujata Raut
Advance for purchase of vehicle cleared
29411
1,00,000
(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)
Receipt No:
Amount received:
Submitted by: Mr. ABC
Post: Accountant
Date:
Cheque No:
Cheque amount: One lakh only.
Approved by: Mr. XYZ
Post: Office head
Date:
- When the amount of expenditure is more than the advance
If the amount of expenditure is more than the advance given, the excess amount of expenditure is paid through cheque. The following journal voucher is passed for clearing the advance:
Dr. B.E. Name of the Budget Head
Cr. The Name and Post of the person
Clearance of advance for.......
Cr. Nepal Rastra Bank
(Being advance for ...... cleared by issuing a cheque for excess amount of expenditure)
Example:Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 1,20,000 and her advance of Rs. 1,00,000 was cleared.
Government of Nepal
.......... Office/Dept/Ministry
Journal Voucher
AGF No. 10
JV No.
Date:
Code No.
Particulars
LF
BH No.
Debit Rs.
Credit Rs.
Dr. BE Vehicle
29411
1,20,000
Cr. Section Officer, Ms. Sujata Raut
Advance for purchase of vehicle cleared
1,00,000
Cr. NRB
20,000
(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)
Receipt No:
Amount received:
Submitted by: Mr. ABC
Post: Accountant
Date:
Cheque No:
Cheque amount: Twenty thousand only.
Approved by: Mr. XYZ
Post: Office head
Date:
When the amount of expenditure is less than the advance
If the amount of expenditure is less than the advance given, the surplus amount is returned to concerned office or deposited in the bank. The following journal voucher is passed for clearing the advance:
Dr. B.E. Name of the Budget Head
Dr. Nepal Rastra Bank
Cr. The Name and Post of the person
Clearance of advance for.......
(Being advance for ...... cleared and surplus amount is returned)
Example:Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 75,000 and her advance of Rs. 1,00,000 was cleared.
Government of Nepal
.......... Office/Dept/Ministry
Journal Voucher
AGF No. 10
JV No.
Date:
Code No.
Particulars
LF
BH No.
Debit Rs.
Credit Rs.
Dr. BE Vehicle
29411
75,000
Dr. Nepal Rastra Bank
25,000
Cr. Section Officer, Ms. Sujata Raut
1,00,000
Advance for purchase of vehicle cleared
(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)
Receipt No:
Amount received:
Submitted by: Mr. ABC
Post: Accountant
Date:
Cheque No:
Cheque amount: One lakh only.
Approved by: Mr. XYZ
Post: Office head
Date:
When the whole amount of the advance is returned
Sometimes, the party may fail to perform the assigned job. In such condition, the whole amount of advance should be returned to the office. The following journal voucher is passed for clearing the advance:
Dr. Nepal Rastra Bank
Cr. The Name and Post of the person
Clearance of advance for.......
(Being advance for ...... cleared by returning the amount of advance)
Example:Section Officer, Ms. Sujata Raut, made no expenditure so her whole amount of advance was deposited into the bank and her advance of Rs. 1,00,000 was cleared.
Government of Nepal
.......... Office/Dept/Ministry
Journal Voucher
AGF No. 10
JV No.
Date:
Code No.
Particulars
LF
BH No.
Debit Rs.
Credit Rs.
Dr. Nepal Rastra Bank
1,00,000
Cr. Section Officer, Ms. Sujata Raut
Advance for purchase of vehicle cleared
1,00,000
(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)
Receipt No:
Amount received:
Submitted by: Mr. ABC
Post: Accountant
Date:
Cheque No:
Cheque amount: One lakh only.
Approved by: Mr. XYZ
Post: Office head
Date:
When the partial clearance is made
Sometimes, the party who has taken the advance may clear the advance partially. The following journal voucher is passed for clearing the advance:
Dr. B.E. Name of the Budget Head
Cr. The Name and Post of the person
Clearance of advance for.......
(Being advance for ...... cleared partially)
Example:Section Officer, Ms. Sujata Raut, submitted bill of Rs. 70,000 a partial clearance of her advance.
Government of Nepal
.......... Office/Dept/Ministry
Journal Voucher
AGF No. 10
JV No.
Date:
Code No.
Particulars
LF
BH No.
Debit Rs.
Credit Rs.
Dr. BE Vehicle
29411
70,000
Cr. Section Officer, Ms. Sujata Raut
Advance for purchase of vehicle cleared
70,000
(Being advance given to SO Mrs. Sujata Raut for the purchase of vehicle)
Receipt No:
Amount received:
Submitted by: Mr. ABC
Post: Accountant
Date:
Cheque No:
Cheque amount: Seventy thousand only.
Approved by: Mr. XYZ
Post: Office head
Date:
Things to remember
- Advance is an amount, which is given to official staff and other parties before receiving goods and services.
- An advance is given to an official staff or to other party to make expenditure on the related budget head.
- The amount of advance, which is given to perform the specific task, should be cleared after its completion.
- If the amount of expenditure is less than the advance given, the surplus amount is returned to concerned office or deposited in the bank.
- It includes every relationship which established among the people.
- There can be more than one community in a society. Community smaller than society.
- It is a network of social relationships which cannot see or touched.
- common interests and common objectives are not necessary for society.
Questions and Answers
What is an advance?
An advance is an amount, which is given to official staff and other parties before receiving goods and services. It is given to perform a specific task.
Explain in short about the journal voucher at the time of giving advance.
An advance is given to an official staff or to other party to make expenditure on the related budget head. When the advance is given the party receiving the advance with related budget head is debited and Nepal Rastra Bank is credited. The journal voucher at the time of giving advance is passed as follows:
Dr. Name and post of the receiver
Advance for ……. (Budget head)
Cr. Nepal Rastra Bank
(Being advance given to Mr. …..for the purchase of ……)
Explain in short about journal voucher at the time of giving advance.
The amount of advance, which is given to perform the specific task, should be cleared after its completion. It is cleared after the submission of necessary bills and documents. The amount of expenditure may be equal to the advance, less than the advance or more than the advance amount. The following are the five conditions to clear the advance:
When the amount of expenditure is equal to the advance given
When the amount of expenditure is more than the advance given
When the amount of expenditure is less than the advance given
When the whole amount of advance is returned
When the partial clearance is made.
On 2063/ 04/15 store keeper Mr. Shankar Sharma was paid an amount of Rs.10,000 as an advance for the purchase of office furniture through cheque no. 00037. (SLC 2065)
| Government of Nepal District Education Office, Palpa Journal Voucher | AGF No. 10 JV No. Date: 04/15 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Storekeeper Mr. Shankar Sharma | |||||
| Advance for office furniture purchase | 29311 | 10,000 | |||
| Cr. Nepal Rastra Bank | 10,000 | ||||
| (Being advance given to storekeeper Mr. Shankar Sharma for the purchase of office furniture through cheque no. 00037.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/15 | Cheque No: Cheque amount: Ten thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/15 |
On 2063/ 04/25 the advance of Storekeeper Mr. Shankar Sharma of Rs. 10,000 cleared as per the bill submitted by him after purchasing office furniture. (SLC 2065)
| Government of Nepal District Education Office, Palpa Journal Voucher | AGF No. 10 JV No. Date: 04/25 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. BE Office furniture | 29311 | 10,000 | |||
| Cr. Store keeper Mr. Shankar Sharma | |||||
| Clearance of the advance for the purchase of office furniture | 10,000 | ||||
| (Being advance of Mr. Shankar Sharma for the purchase of office furniture cleared.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/25 | Cheque No: Cheque amount: Ten thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/25 |
On 2066/04/14 issued a cheque no. 013 of Rs. 3,000 to create petty cash fund and handed it over to accountant Shyam Raut. (SLC 2066)
| Government of Nepal District Education Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 04/14 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Petty cash fund | 3,000 | ||||
| Cr. Nepal Rastra Bank | 3,000 | ||||
| (Being cheque issued to create petty cash fund and handed it over to accountant Shyam Raut.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/14 | Cheque No: 013 Cheque amount: Three thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/14 |
On 2067/05/20 advance paid to section officer Sarita Puri Rs. 6,000/- through cheque no. 006789. (SLC 2067)
| Government of Nepal District Administration Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 05/20 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Section Officer Sarita Puri | 6,000 | ||||
| Cr. Nepal Rastra Bank | 6,000 | ||||
| (Being advance given to section officer Sarita Puri through cheque no. 006789.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/25 | Cheque No: Cheque amount: Ten thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/25 |
On 2067/04/14 storekeeper K. Pradhan was paid an amount of Rs. 1,20,000 as an advance for the purchase of office furniture through cheque no. 01235. (SLC 2068)
| Government of Nepal .......... Office/Dept/Ministry Journal Voucher | AGF No. 10 JV No. Date: 04/14 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Storekeeper K. Pradhan | |||||
| Advance for purchase of office furniture | 29311 | 1,20,000 | |||
| Cr. Nepal Rastra Bank | 1,20,000 | ||||
| (Being advance given to storekeeper K. Pradhan for the purchase of office furniture.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/25 | Cheque No: Cheque amount: Ten thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/25 |
On 2067/04/27 office furniture purchased advance of storekeeper K. Pradhan Rs. 1,20,000 has been cleared against the bill for purchase of Rs. 1,25,000 by issuing cheque no. 01236 for the balance amount. (SLC 2068)
| Government of Nepal District Education Office, Dolpa Journal Voucher | AGF No. 10 JV No. Date: 04/27 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. BE Office Furniture | 29311 | 1,25,000 | |||
| Cr. Storekeeper K. Pradhan | |||||
| Clearance of advance for the purchase of office furniture | 1,20,000 | ||||
| Cr. Nepal Rastra Bank | 5,000 | ||||
| (Being advance for the purchase of furniture cleared.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/27 | Cheque No: 1236 Cheque amount: One lakh twenty five thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/27 |
On 2069/04/07 Rs. 35,000 was paid as an advance through cheque no. 106 to accountant Prem Shrestha for purchasing computer. (SLC 2069)
| Government of Nepal District Education Office, Rukum Journal Voucher | AGF No. 10 JV No. Date: 04/07 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. Accountant Prem Shrestha | |||||
| Advance for the purchase of computer | 29511 | 35,000 | |||
| Cr. Nepal Rastra Bank | 35,000 | ||||
| (Being advance given to Prem Shrestha for the purchase of computer.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/07 | Cheque No: 106 Cheque amount: Thirty five thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/07 |
On 2069/04/28 advance cleared by Accountant Prem Shrestha for the purchase of computer against the bill of Rs. 35,000. (SLC 2069)
| Government of Nepal District Education Office, Rukum Journal Voucher | AGF No. 10 JV No. Date: 04/28 |
| Code No. | Particulars | LF | BH No. | Debit Rs. | Credit Rs. |
| Dr. BE Computer | 29511 | 35,000 | |||
| Cr. Accountant Prem Shrestha | |||||
| Clearance of advance for the purchase of computer | 35,000 | ||||
| (Being advance cleared by Accountant Prem Shrestha for the purchase of computer.) |
| Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/28 | Cheque No: Cheque amount: Thirty five thousand only. Approved by: Mr. XYZ Post: Office head Date: 04/28 |
Quiz
© 2019-20 Kullabs. All Rights Reserved.