Security Deposit, Loan and Budget Transfer

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Overview

Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services. This note has information about the security deposit, loan and budget transfer.
Security Deposit, Loan and Budget Transfer
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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 ......)
  • When security deposit is refunded
    Dr. .......... Security deposit
    Cr. Nepal Rastra Bank
    (Being security deposit refunded to ..........)

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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:

Abroad Studies Opportunities
  • When the loan is received
    Dr. Nepal Rastra Bank
    Cr. ....... Office loan a/c
    (Being loan received from .......office)

  • When loan is given or re-paid
    Dr. ..... office loan a/c
    Cr. Nepal Rastra Bank
    (Being loan given/ paid to ..... office)

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:

  • 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)

  • 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:

    1. Journal voucher for receiving the budget transfer:
      Dr. Nepal Rastra Bank
      Cr. Budget release (Budget head)
    2. Journal voucher for providing the budget transfer:
      Dr. Budget release (Budget head)
      Cr. Nepal Rastra Bank
Things to remember
  • Security deposit is concerned with the amount deposited by a contractor or supplier against the tender of supplying goods and services. 
  • The government office can receive loan from other offices.
  • Budget transfer is the act of transferring an amount from one budget head to another.
  • If the budget head is transferred to another budget head within the office, then it is called intra-office budget transfer. 
  • If the budget head is transferred from one office to another office, then it is called inter-office budget transfer. 
  • 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 budget transfer is the act of transferring an amount from one budget head to another.

If the budget head is transferred to another budget head within the office, then it is called intra-office budget transfer.

If the budget head is transferred from one office to another office, then it is called inter-office budget transfer.

Quiz

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