Subject: Accountancy
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:
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.
Government of Nepal District Education Office, Chitwan Journal Voucher | AGF No. 10 JV No. Date: 05-05 |
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.) |
Receipt No: Amount received: Three lakhs only. Submitted by: Mr. ABC Post: Accountant Date: 05-05 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 05-05 |
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:
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.
Government of Nepal District Education Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 01-29 |
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.) |
Receipt No: Amount received: Two lakhs only. Submitted by: Mr. ABC Post: Accountant Date: 01-29 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 01-29 |
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.
Government of Nepal District Road Maintainance Office, Lalitpur Journal Voucher | AGF No. 10 JV No. Date: 12-07 |
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.) |
Receipt No: Amount received: Five lakh only. Submitted by: Mr. ABC Post: Accountant Date: 12-07 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 12-07 |
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.
Government of Nepal District Irrigation Office, Rautahat Journal Voucher | AGF No. 10 JV No. Date: 02-15 |
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.) |
Receipt No: Amount received: Three lakh only. Submitted by: Mr. ABC Post: Accountant Date: 02-15 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 02-15 |
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:
The District Education Office, Kathmandu created a petty cash fund of Rs. 300 on Magh 10.
Government of Nepal District Education Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 10-10 |
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.) |
Receipt No: Amount received: Two lakh only. Submitted by: Mr. ABC Post: Accountant Date: 10-10 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 10-10 |
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
Government of Nepal District Education Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 06-30 |
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.) |
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 06-30 | Cheque No: Cheque amount: One hundred eighty only. Approved by: Mr. XYZ Post: Office head Date: 06-30 |
Explain in short about 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
Cr. Revolving/ Imprest Fund Release
(Being initial revolving fund received)
Expalin in short about budget release and the three conditions of 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:
Explain in short about 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:
What is budget transfer?
Budget transfer is the act of transferring an amount from one budget head to another.
What are miscellaneous transactions?
The transactions other than budget expenditure and advance given and cleared are called miscellaneous transactions.
On 2063/ 04/04 received bank order of Rs.5,00,000 as a revolving fund. (SLC 2065)
Government of Nepal .......... Office/Dept/Ministry Journal Voucher | AGF No. 10 JV No. Date: 04/04 |
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.) | |||||
Receipt No: Amount received: Five lakh only. Submitted by: Mr. ABC Post: Accountant Date: 04/04 | Cheque No: Cheque amount: Approved by: Mr. XYZ Post: Office head Date: 04/04 |
On 2063/ 04/20 established a petty cash fund of Rs.500. (SLC 2065)
Government of Nepal District Education Office, Palpa Journal Voucher | AGF No. 10 JV No. Date: 04/20 |
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.) |
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/20 | Cheque No: Cheque amount: Five hundred only. Approved by: Mr. XYZ Post: Office head Date: 04/20 |
On 2066/04/11 Rs.8,00,000 was received as revolving fund through Nepal Rastra Bank transfer. (SLC 2066)
Government of Nepal District Education Office, Kathmandu Journal Voucher | AGF No. 10 JV No. Date: 04/11 |
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.) | |||||
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/11 | Cheque No: Cheque amount: Eight lakh only. Approved by: Mr. XYZ Post: Office head Date: 04/11 |
On 2067/05/12 received bank order letter of Rs. 10,00,000/- as revolving fund release. (SLC 2067)
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 | 10,00,000 | ||||
Cr. Revolving fund release | 10,00,000 | ||||
(Being bank order received as revolving fund release.) |
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 05/12 | Cheque No: Cheque amount: Ten lakh only. Approved by: Mr. XYZ Post: Office head Date: 05/12 |
On 2067/04/05 received bank order of Rs. 9,00,000 as revolving fund release. (SLC 2068)
Government of Nepal District Education Office, Dolpa Journal Voucher | AGF No. 10 JV No. Date: 04/05 |
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) | |||||
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/05 | Cheque No: Cheque amount: Nine lakh only. Approved by: Mr. XYZ Post: Office head Date: 04/05 |
On 2069/04/04 Rs. 10,00,000 was received as revolving fund through RB Bank transfer. (SLC 2069)
Government of Nepal .......... Office/Dept/Ministry Journal Voucher | AGF No. 10 JV No. Date: 04/04 |
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.) |
Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date: 04/04 | Cheque No: Cheque amount: Ten lakhs only. Approved by: Mr. XYZ Post: Office head Date: 04/04 |
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