Statement of Expenditure

Subject: Accountancy

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Overview

The monthly statement which is prepared to disclose the position of budget & position of the fund is known as statement of expenditure. This note has information about statement of expenditure.
Statement of Expenditure

The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure. It is one of the main monthly statement designed to submit the statement of expenditure to the concerned Central Level Office within the first 7 days of the month under the present system. On the basis of the expenditure statement budget for the next month is estimated and released to the operating level offices. This statement of expenditure shows the progress of the operating level offices. It is known as AGF No. 13, which shows the expenditure, the total amount of appropriation, amount of budget release and balance of budget under the various heads.

Objectives of Statement of Expenditure

The main objectives of statement of expenditure are as follows: -

  1. To help to know the progress of operating level offices.
  2. To control budget expenditurecontrol by providing necessary information to the central level officers.
  3. To provide information for making the decision on imprest fund release and budget release to the Office of the Treasury and Comptroller.
  4. To estimate budget by providing various information.
  5. To provide information on annual appropriation, budget release, budget expenditure, budget balance and an uncleared amount of advance.
  6. To show the position of fund showing bank balance and petty cash balance.

Ruling or Specimen of Statement of Expenditure

Statement of expenditure is prepared under the format of AGF No. 13. The specimen of statement of expenditure is as follows: -


Statement of Monthly Statement
Statement of Monthly Statement

Preparation of Statement of Expenditure

The statement of expenditure is prepared as per the format of Auditor General Form No. 13. It comprises two parts, which are:

  1. Part which shows the position of budget
  2. Part which shows the position of fund

Part showing the Position of Budget

This is the first part of the statement of expenditure that shows the annual appropriation of the budget, budget release, budget expenditure and budget balance on different budget heads and subheads. This part shows the position of budget.

Part showing the Position of Fund

This is the second part of the statement of expenditure that shows the amount of budget release, the total amount of budget expenditure, the uncleared amount of advance and position of the loan. This part shows the position of bank balance and cash balance.

Things to remember
  • The monthly statement which is prepared to disclose the position of budget & position of the fund is known as statement of expenditure. 
  • On the basis of the expenditure statement budget for the next month is estimated and released to the operating level offices. 
  • Statement of expenditure is prepared under the format of AGF No. 13.
  • The first part of the statement of expenditure shows the position of budget. 
  • The second part of the statement of expenditure shows the position of bank balance and cash balance. 
  • 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

The monthly statement which is prepared to disclose the position of budget & position of the fund is known as statement of expenditure.

The main objectives of statement of expenditure are as follows: -

  1. To evaluate the progress of operating level offices.
  2. To provide necessary information to the central level office for controlling budget expenditure.
  3. To provide information to the Office of the Treasury and Comptroller for making decision on imprest fund release and budget release.
  4. To provide information for estimating budget
  5. To provide detailed information on annual appropriation, budget release, budget expenditure, budget balance and an uncleared amount of advance.
  6. To show the position of fund showing bank balance and petty cash balance.

The statement of expenditure is prepared as per the format of Auditor General Form No. 13. It comprises two parts, which are:

  1. Part which shows the position of budget
  2. Part which shows the position of fund

Part showing the Position of Budget

The first part of the statement of expenditure shows the position of budget. This part shows the annual appropriation of budget, budget release, budget expenditure and budget balance on different budget heads and subheads.

Part showing the Position of Fund

The second part of the statement of expenditure shows the position of bank balance and cash balance. This part also shows the amount of budget release, total amount of budget expenditure, uncleared amount of advance and position of loan.

Any two objectives for preparing the Statement of Expenditure are:

  1. To provide necessary information to the central level office for controlling budget expenditure.
  2. To provide information to the Office of the Treasury and Comptroller for making decision on imprest fund release and budget release.

Any two objectives for preparingthe Statement of Expenditure are:

  1. To provide necessary information to the central level office for controlling budget expenditure.
  2. To provide information to the Office of the Treasury and Comptroller ffor making decision on imprest fund release and budget release.
Expenditure of the current month Release upto the end of current month BH No. Budget Heads Annual appropriation of Budget Expenditure upto the end of the current month Baance of budget

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