Types of Accounting System used in Nepal

The following are the types of accounting system used in Nepal:

Wasil Banki Sresta Pranali

Wasil Banki Sresta Pranali was the simple statement that was used to record the government revenues and expenditures. This system was suitable for those offices, which were established for a short period and that had a small number of financial transactions. It was based on a single entry system of book-keeping. Under this system, books of account were closed at the end of the fiscal year or after the completion of the work.

Syaha Sresta Pranali

The system on which expenditures and revenues were recorded on the same leaf along with their total and balances is called Syaha Sresta Pranali. It was introduced in the process of historical development of the accounting system. It was propounded by Kharidar Gunawanta in 1936 BS. This system was more systematic than Wasil Banki Sresta Pranali. Different types of books were used for maintaining the record the financial transactions of the government offices, which were as follows:

1. Syaha
   Syaha was an original record of financial transactions like Journal Voucher It was used to record incomes and expenditures of the government offices. Syaha was prepared in a 'T' shape form. A syaha was closed either at the end of the each month or at the end of the fiscal year. Syaha were divided into following three categories:
   
   • Nagadi Syaha: Nagadi Syaha was used to record the cash transactions.
   • Jinsi Syaha: Jinsi Syaha was used to record the transactions relating to the properties.
   • Dharauti Syaha: Dharauti Syaha was used to record the amount deposited by the public for specific purposes.
     
     
2. Awarje
   A books of accounts, which was used to classify the transactions under different heads of revenues and expenditures are called awarje. It was kept under the double entry system of book-keeping. In this book, all the transactions were classified under different heads of revenues and expenditures. It had the following categories:
   
   • Income awarje: It was prepared to record and classify the government revenues.
   • Vinjalik (Expenditure) Awarje: It was prepared to record and classify the government expenditures.
     
     
3. Dhapot
   It was prepared to present the summary of the government fund position during a certain period. Its types are categorized as:
   
   • Job End Dhapot: It was prepared at the end of a job or after the completion of project work.
   • Month End Dhapot: It was prepared at the end of each month.
   • Year End Dhapot: It was prepared at the ned of each fiscal year.
     
     

Form Sresta Pranali

A system, used with different types of forms for recording the financial transactions are known as Form Sresta Pranali. It was introduced in the government offices in 1968 B.S. It was specially developed to record the land revenues of the Terai and city areas of Nepal. Altogether 51 different forms were used to record different transactions due to an increase in the number of financial transactions. The following were some of them:

• Day book of cashier
• Ten days report
• Fifteen days report
• Monthly cash statement
• Remainder Journal
• Monthly pay sheet
• Outstanding revenue records form
• Statement of the balance collected from the debtors, etc.
  
  

Bhuktani Sresta Pranali

The system which was used to record the government expenditures according to the budget heads is called Bhuktani Sresta Pranali. It was developed in 2017 B.S. for making a systematic record of government expenditures according to the budget heads. Bhuktani Sresta Pranali was more scientific system and based on the double entry system of book-keeping. Under this system, the government offices were classified into central level offices and operating level offices for making a systematic record of revenues and expenditures of public funds.

Things to remember

• A system, used with different types of forms for recording the financial transactions are known as Form Sresta Pranali. 
• The system which was used to record the government expenditures according to the budget heads is called Bhuktani Sresta Pranali.
• The system on which expenditures and revenues was recorded on the same leaf along with their total and balances is called Syaha Sresta Pranali. 
• Wasil Banki Sresta Pranali was the simple statement that was used to record the government revenues and expenditures. 

• 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.

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