Statement of Expenditure
Subject: Other
Overview
The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure. This note has information about the statement of expenditure, its importance and divisions.Statement of Expenditure
Statement of expenditure is a multi-column self-balancing monthly statement of expenditures of an operating level office. It is prepared to the concerned central level office at the end of every month as a monthly report. Therefore, it is also called monthly expenditure report.
The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure. It is one of the main monthly statement designed to submit the statement of expenditure to the concerned Central Level Office within the first 7 days of the month under the present system. On the basis of the expenditure statement budget for the next month is estimated and released to the operating level offices. This statement of expenditure shows the progress of the operating level offices. It is known as AGF No. 13, which shows the expenditure, the total amount of appropriation, amount of budget release and balance of budget under the various heads.
Importance
The following are the importance of statement of expenditure:
- It helps to evaluate the progress of operating level offices.
- It provides necessary information to the central level offices for controlling budget expenditure.
- It provides information to the office of the treasury nad comptroller for making a decision on budget release and revolving fund.
- It provides information for making a future budget of operating level offices.
Divisions of Statement of Expenditure
The statement of expenditure has two divisions:
-
Division showing the position of budget
The first part of the statement of expenditure shows the position of the budget. This part shows the annual appropriation of the budget, budget release, budget expenditure and budget balance on different budget heads and subheads.S.N
Column
Explanation
1.
Expenditure of the current month
In this column, the amount of the budget expenditure incurred under different budget heads for the current month is mentioned.
2.
Release up to the end of the current month
It records the cumulative budget release received on different budget heads up to the end of current month.
3.
Budget Head No.
It records the budget head number of related expenditure.
4.
Budget Head
It records the name of the related budget head.
5.
Annual Appropriation
The amount of annual appropriation of each budget head is mentioned.
6.
Expenditure up to the end of the current month
This column is used to record the amount of total expenditure made up to the current month.
7.
Balance of budget
This column records the balancing amount of each budget head.
-
Division showing the position of fund
The second part of the statement of expenditure shows the position of bank balance and cash balance. This part also shows the amount of budget release, the total amount of budget expenditure, the uncleared amount of advance and position of the loan.
The position of fund shows the following components:- Total budget release up to the current month
It is the amount, which is concerned with the budget received up to the current month from central level offices. It is calculated by using the following formula:
Total budget release up to current month = Total expenditure up to current month + Bank balance + Cash balance + Loan provided -Loan received - Annual expenditure
It is the amount, which the amount which is concerned with the amount of expenditure after deducting unsettled advance. - Bank balance
Bank balance is an amount of balance at the bank at the ending date of the statement. It is calculated in the following way:
Bank balance = Total budget released up to the current month + Loan received - Total expenditure up to the current month-Cash balance -Loan provided - Cash balance
Cash balance is an amount of balance of cash at the ending date of the statement. It is calculated in the following ways:
Cash balance = Total budget release up to the current month + Loan received - Total expenditure up to the current month -Bank balance -Loan provided
- Total budget release up to the current month
Statement of Outstanding Advance (AGF no. 14)
The monthly statement which discloses the information of unclear advance is called statement of outstanding advance. It provides information about an unclear amount of advance, the name of the party receiving advance and reasons for unclearing advance. It is prepared and submitted to the Central Level Offices along with Expenditure Statement. This statement of expenditure shows the actual financial position of the office. It is known as AGF No. 14, which shows the detail information of advance like date of advance given, name of the person or party receiving the advance, the amount of advance, objectives of advance, reasons for not clearance of advance etc.
Bank Reconciliation Statement
All the government transactions are done through the bank. All the collection are deposited into the bank and all the payments are made through the bank. Bank provides a Bank pass book and Bank Cash Book is also maintained by the office. Generally, the balance as per pass book and as per bank cash book should be the same, but usually, the two balances do not agree. Therefore, to find out the reasons of difference in the balances in these two books of accounts, a statement is prepared which is known as bank reconciliation statement. Hence, bank reconciliation statement refers to the statement prepared by operating level office to reconcile the balance of bank cash book or passbook. It is known as AGF No. 15.
Things to remember
- The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure.
- All the government transactions are done through the bank. All the collection are deposited into the bank and all the payments are made through the bank.
- The monthly statement which discloses the information of unclear advance is called statement of outstanding advance.
- 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
Following particulars are given:
|
Budget head |
Annual Budget (Rs.) |
Expenditure up to Magh (Rs.) |
Expenditure up to Falgun (Rs.) |
|
Salary |
1,50,000 |
87,500 |
12,500 |
|
Allowance |
60,000 |
35,000 |
5,000 |
|
Water and electricity |
30,000 |
17,500 |
2,500 |
|
Rent |
45,000 |
26,000 |
4,000 |
|
Fuel |
24,000 |
14,000 |
2,000 |
|
Machinery |
50,000 |
40,000 |
- |
|
|
3,59,000 |
2,20,000 |
26,000 |
Additional Information:
- Revolving fund received Rs.2,60,000
- Uncleared salary advance Rs.1,000
- Petty cash fund balance Rs.500
Required: Statement of Expenditure showing balance at bank
Solution:
| Government of Nepal | AGF No.13 | |
| …………………. Office/ Dept./ Ministry | ||
| Statement of Expenditure | ||
| For the month of Falgun |
| Expenditure for the month of Falgun | Release upto the end of Falgun | Budget Head No. | Budget Heads | Annual Appropriation Budget | Expenditure upto the end of Falgun | Balance of budget |
| 12,500 | 87,500 | 21111 | Salary | 1,50,000 | 1,00,000 | 50,000 |
| 5,000 | 35,000 | 21112 | Allowance | 60,000 | 40,000 | 20,000 |
| 2,500 | 17,500 | 22111 | Water and electricity | 30,000 | 20,000 | 10,000 |
| 4,000 | 26,000 | 22121 | Rent | 45,000 | 30,000 | 15,000 |
| 2,000 | 14,000 | 22211 | Fuel | 24,000 | 16,000 | 8,000 |
| - | 40,000 | 29511 | Machinery | 50,000 | 40,000 | 10,000 |
| 26,000 | 2,20,000 | 3,59,000 | 2,46,000 | 1,13,000 | ||
| 40,000 | Revolving fund balance | |||||
| 26,000 | 2,60,000 | Total | 3,59,000 | 2,46,000 | 1,13,000 |
| Total release upto Falgun Rs. 2,60,000 | Bank Balance Rs. 13,500 |
| Total expenditure upto Falgun Rs. 2,46,000 | Cash Balance Rs. 500 |
| Net Expenditure Rs. 14,000 | Total Balance Rs. 14,000 |
| Uncleared advance Rs. 1,000 | Loans payable Nil |
| Actual expenditure Rs. 2,45,000 | Loans receivable Nil |
| Submitted by: Mr. XYZ | Post: Accountant | Date: |
| Approved by: Mr. ABC | Post: Office Head | Date: |
Working note:
Bank balance = Total release – Total expenditure – Cash balance
= Rs. (2,60,000-2,46,000-500)
= Rs.13,500
Following information are given:
|
Budget Head |
Annual Budget (Rs.) |
Expenditure up to Poush (Rs.) |
Expenditure up to Magh (Rs.) |
|
Salary |
4,00,000 |
1,30,000 |
1,68,000 |
|
Water and electricity |
80,000 |
25,000 |
30,000 |
|
Office material |
90,000 |
30,000 |
40,000 |
|
Fuel |
60,000 |
20,000 |
25,000 |
|
Furniture |
50,000 |
- |
25,000 |
|
|
6,80,000 |
2,05,000 |
2,88,000 |
Additional information:
- Total revolving fund received: Rs.3,40,000
- Petty cash balance Rs.1,000
- Advance salary Rs.10,000
Required: Statement of Expenditure showing bank balance
Solution:
| Government of Nepal | AGF No.13 | |
| …………………. Office/ Dept./ Ministry | ||
| Statement of Expenditure | ||
| For the month of Magh |
| Expenditure for the month of Magh | Release upto the end of Magh | Budget Head No. | Budget Heads | Annual Appropriation Budget | Expenditure upto the end of Magh | Balance of budget |
| 38,000 | 1,30,000 | 21111 | Salary | 4,00,000 | 1,68,000 | 2,32,000 |
| 5,000 | 25,000 | 22111 | Water and electricity | 80,000 | 30,000 | 50,000 |
| 10,000 | 30,000 | 22311 | Office material | 90,000 | 40,000 | 50,000 |
| 5,000 | 20,000 | 22211 | Fuel | 60,000 | 25,000 | 35,000 |
| 25,0000 | - | 29311 | Furniture | 50,000 | 25,000 | 25,000 |
| 83,000 | 2,05,000 | 6,80,000 | 2,88,000 | 3,92,000 | ||
| 1,35,000 | Revolving fund balance | |||||
| 83,000 | 3,40,000 | 6,80,000 | 2,88,000 | 3,92,000 |
| Total release upto Magh Rs. 3,40,000 | Bank Balance Rs.51,000 |
| Total expenditure upto Magh Rs.2,88,000 | Cash Balance Rs.1,000 |
| Net expenditure Rs. 52,000 | Total Balance Rs.52,000 |
| Uncleared advance Rs.10,000 | Loans payable Nil |
| Actual expenditure Rs.2,78,000 | Loans receivable Nil |
| Submitted by: Mr. XYZ | Post: Accountant | Date: |
| Approved by: Mr. ABC | Post: Office Head | Date: |
Working note:
Bank balance = Total release – Total expenditure – Cash balance
= Rs.(3,40,000-2,88,000-1,000)
= Rs.51,000
The following particulars are given:
|
Annual Budget (Rs.) |
Budget Items |
Expenditure up to Bhadra (Rs.) |
Expenditure of Aswin (Rs.) |
|
4,26,000 |
Salary |
66,000 |
63,000 |
|
24,000 |
Allowance |
4,000 |
2,000 |
|
40,000 |
Office materials |
8,000 |
4,000 |
|
60,000 |
Miscellaneous expenses |
16,000 |
10,000 |
|
8,000 |
Contingencies-regular |
- |
- |
|
48,000 |
Furniture |
20,000 |
8,000 |
Additional information
- Total imprest fund received Rs.2,15,000
- Petty cash fund balance Rs.1,000
- Uncleared advance of furniture Rs.8,000
Required: Statement of Expenditure showing balance at bank
Solution:
| Government of Nepal | AGF No.13 | |
| …………………. Office/ Dept./ Ministry | ||
| Statement of Expenditure | ||
| For the month of Aswin |
| Expenditure for the month of Aswin | Release upto the end of Aswin | Budget Head No. | Budget Heads | Annual Appropriation Budget | Expenditure upto the end of Aswin | Balance of budget |
| 63,000 | 66,000 | 21111 | Salary | 4,26,000 | 1,29,000 | 2,97,000 |
| 2,000 | 4,000 | 21112 | Allowance | 24,000 | 6,000 | 18,000 |
| 4,000 | 8,000 | 22311 | Office materials | 40,000 | 12,000 | 28,000 |
| 10,000 | 16,000 | 22711 | Miscellaneous expenses | 60,000 | 26,000 | 34,000 |
| - | - | 22911 | Contingencies-regular | 8,000 | - | 8,000 |
| 8,000 | 20,000 | 29311 | Furniture | 48,000 | 28,000 | 20,000 |
| 87,000 | 1,14,000 | 6,06,000 | 2,01,000 | 4,05,000 | ||
| 1,01,000 | Revolving fund balance | |||||
| 87,000 | 2,15,000 | Total | 6,06,000 | 2,01,000 | 4,05,000 |
| Total release upto Aswin Rs. 2,15,000 | Bank Balance Rs.13,000 |
| Total expenditure upto Aswin Rs.2,01,000 | Cash Balance Rs.1,000 |
| Net expenditure: Rs.14,000 | Total Balance Rs.14,000 |
| Uncleared advance Rs.8,000 | Loans payable Nil |
| Actual expenditure Rs.1,93,000 | Loans receivable Nil |
| Submitted by: Mr. XYZ | Post: Accountant | Date: |
| Approved by: Mr. ABC | Post: Office Head | Date: |
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