Parts and Closing of Budget Sheet and Ledger Accounts

Parts of Budget Sheet

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below:

1. Annual appropriation part
   It is the first part of a budget sheet which is placed at the top of the sheet. It shows the total amount allocated under different budget heads & subheads which are approved for the fiscal year. This part is filled up with the help of approval letter provided by the central level office. It determines the maximum limit of the budget to be sent by the operating level offices. It shows the inter-heads transfer of budget. Journal voucher is not necessary to fill this part.
   
   
2. Budget release part
   It is the second part of the budget sheet which lies just below the annual budget appropriation. It is made out of annual appropriation. It shows the total amount of budget release received from the central level office. It shows the amount of budget release in each head & subheads of budget expenditures. It is prepared on the basis of journal voucher.
   
   
3. Budget expenditure part
   It is the third part of the budget sheet. It shows the budget expenditures made by offices under different budget heads & subheads. The transactions, which do not affect the budget heads, are not required to post in this section. It also keeps the record of advance given & cleared transactions. The petty cash expenses are recorded at the time of reimbursement. It is prepared on the basis of journal voucher.

Closing of Budget Sheet

The budget sheet is closed monthly as well as annually. It is closed to report about the budget release and expenditure till the date.

• Monthly Closing
  Al the end of each month, the budget sheet is closed. The process of obtaining the total budget release and expenditures up to the month is called monthly closing. The monthly closing determines the amount of total budget release and total budget expenditures of the month as well as up to the month. In order to close the budget sheet, firstly the total of the month is obtained. Finally, the total up to the previous month is added to the total of the month to obtain the total release and expenditures up to the month.
  
  
• Yearly Closing
  The budget sheet is closed at the end of each fiscal year, which is known as yearly closing. It closes the total amount of budget expenditures and a total amount of budget release. Yearly closing is the process of equalizing the total budget release with the total budget expenditures during the fiscal year. The yearly closing is made by preparing closing voucher.

Ledger Accounts

A ledger is a book that records similar nature of transactions in one place to find out the total result of related transactions. It is an account that maintains separate records of each item other than budgetary accounts. The following types of accounts are required to maintain by operating level offices of the Nepalese government:

• Imprest fund release account
• Petty cash fund account
• Provident fund, income tax and staff loan account
• Budget release account
• Loan and deposit account
• Inter-office loan account
• Contractor's deposit account