Forms and Levels of New Accounting System

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Overview

The accounting system of government offices is classified into two levels under the new accounting system. Those are central level accounting and operating level accounting. This note has information about the levels of new accounting system and the forms used in new accounting system.
Forms and Levels of New Accounting System

Forms Used in New Accounting System

The new accounting system has a prescribed number of accounting forms to be used by the central level as well as operating level offices for the purpose of recording and reporting financial transactions of the government offices. Some of the important accounting forms used under this system is as follows:

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  • Journal voucher (AGF No. 10)
  • Cash receipts (AGF No. 11)
  • Cash payment slip (AGF No. 6)
  • Budget sheet (AGF No. 8)
  • Bank cash book (AGF No. 5)
  • Ledger accounts (AGF No. 22)
  • Cash receipt book (AGF No. 23)
  • Statement of Expenditure (AGF No. 13)
  • Monthly report regarding revenue (AGF No. 9)
  • Requisition form for the reimbursement of cash payment (AGF No. 6(A))
  • Monthly report of uncleared advance (AGF No. 14)
  • Statement of bank account (AGF No. 15)
  • Summary of position of fund (AGF No. 16)
  • Statement of budget sheet (AGF No. 17)
  • Statement of outstanding payments (AGF No. 18)
  • Monthly report of security deposit (AGF No. 19)
  • Cash payments and receipts controls (AGF No. 7)
  • Budget requisition form (AGF No. 21)

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Levels of New Accounting System

The accounting system of government offices is classified into two levels under the new accounting system. Those are central level accounting and operating level accounting.

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Central Level Accounting

The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as central level accounting. Central level offices are responsible for submitting the financial statements to the ministry of finance and office of the Comptroller General. The accounting of central level offices is concerned with the recording the budget received from the Ministry of Finance and the release made to operating level offices.

The following are the major accounting documents, which are used by the central level offices for the purpose of recording and reporting the transactions:

  • Journal voucher
  • Ledger
  • Subsidiary books
  • Bank statement
  • Statement of advance given
  • Control ledger for the amount deposited into consolidated fund

Operating Level Accounting

The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting. Operating level offices are responsible towards the central level offices. Operating level offices have to submit the statement of expenditure to the concerned central level offices.

The following are the major accounting documents, which are used by operating level offices for the purpose of recording and reporting the transactions:

  • Journal voucher
  • Bank cash book
  • Budget sheet
  • Subsidiary ledger
  • Statement of expenditures

Differences between Central Level Accounting and Operating Level Accounting.

Bases of differences

Central Level Accounting

Operating Level Accounting

Offices

It is maintained by central level offices.

It is maintained by operating level offices.

Responsibility

They are responsible towards the Ministry of Finance.

They are responsible towards the central level offices.

Forms

Only a few numbers of forms are used under this system.

A larger number of forms are used under this system.

Recording

It records the budget received from the ministry of finance and the release made to operating level offices.

It records the budget received from the central level offices and the expenditures made on different budget heads.

Controlling

It is the accounting for controlling budget.

It is the accounting for executing the budget.

Coverage

It includes the accounting of operating level offices.

It does not include the accounting of operating level offices.

Complexity

It is comparatively simple to prepare.

It is comparatively difficult to prepare.

Central accounts

It helps the Office of the Comptroller to prepare central accounts directly.

It helps the Office of the Comptroller to prepare central accounts indirectly.

Things to remember
  • The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as central level accounting.
  • The accounting of central level offices is concerned with the recording the budget received from the Ministry of Finance and the release made to operating level offices.
  • The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting.
  • Operating level offices are responsible towards the central level offices. 
  • 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 levels of new accounting system are:

  • Central level accounting
  • Operating level accounting

The accounting system which is maintained by Central Level Offices like Ministries Department and Constitutional Bodies is known as central level accounting.

The accounting system which is maintained by operating level offices like Zonal, Districts and Regional Offices is known as operating level accounting.

The following are the differences between central level accounting and operating level accounting:

Bases of differences

Central Level Accounting

Operating Level Accounting

Offices

It is maintained by central level offices.

It is maintained by operating level offices.

Responsibility

They are responsible towards the Ministry of Finance.

They are responsible towards the central level offices.

Forms

Only a few numbers of forms are used under this system.

A larger number of forms are used under this system.

Recording

It records the budget received from the ministry of finance and the release made to operating level offices.

It records the budget received from the central level offices and the expenditures made on different budget heads.

Controlling

It is the accounting for controlling budget.

It is the accounting for executing the budget.

The following are the differences between central level accounting and operating level accounting:

Bases of differences

Central Level Accounting

Operating Level Accounting

Offices

It is maintained by central level offices.

It is maintained by operating level offices.

Responsibility

They are responsible towards the Ministry of Finance.

They are responsible towards the central level offices.

Forms

Only a few numbers of forms are used under this system.

A larger number of forms are used under this system.

Recording

It records the budget received from the ministry of finance and the release made to operating level offices.

It records the budget received from the central level offices and the expenditures made on different budget heads.

Controlling

It is the accounting for controlling budget.

It is the accounting for executing the budget.

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