Security Deposit, Loan and Budget Transfer

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.