Subject: Other
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:
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.
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:
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:
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. |
What are the level of new accounting system?
The levels of new accounting system are:
What is 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.
What is 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.
What are the differences between central level accounting and 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. |
What are the differences between central level accounting and 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. |
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