Accounting of Government Expenditure: Class 10 Account Notes | Chapter 11 SEE Guide Nepal

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Class 10 Account

Chapter 11: Accounting of Government Expenditure

For SEE board exam preparation: Theory, journal vouchers, payment orders, bank cash books & expenditure statements

Welcome to the complete guide on Accounting of Government Expenditure. This chapter is highly essential for Class 10 Account students preparing for their SEE board exams in Nepal.

For official curriculum details, visit the CDC Nepal Official Website.

Looking for more study materials? Explore our full collection of Class 10 Account Notes.

Secondary Education Examination (S.E.E.) Questions Pattern

Types of Question	Number of Questions	Pattern Marks
Very Short Answer Question	X	X
Short Answer Question	1	5
Long Answer Question (Numerical)	1	8
Total	2	13

Section A: Answer the following in one sentence
(Very Short Answer Questions) — 1 Mark

(a) What is Appropriation Accounting?

Answer: The systematic and legally compliant recording of all expenditures made — and budget releases received — by government offices within the limits of the budget approved by the legislature is called Appropriation Accounting.

(b) Mention two current expenditure codes and headings.

Answer: Two current expenditure codes and headings: 1. Code No. 21111 — Remuneration to Employees, and 2. Code No. 22311 — Office-related Expenses.

Answer: Expenses incurred when employees travel within the country or abroad for official work — such as transportation fares, daily allowances, accommodation costs, and pocket expenses — fall under Travel Expenses.

(d) On the basis of what documents is a Journal Voucher (Goshwara Voucher) prepared?

Answer: A Journal Voucher is prepared on the basis of official source/supporting documents such as the expenditure approval decision, bill, receipt, advance requisition form, or payment order.

(e) What is included in the first section of a Journal Voucher?

Answer: The first (upper) section of a Journal Voucher includes identification details such as the name of the office, code number, voucher number, fiscal year, and the date on which the voucher was prepared.

(f) What are the three Journal Vouchers in use in Nepal’s Government Accounting System?

Answer: The three Journal Vouchers in use in Nepal’s Government Accounting System are: 1. Simple (Ordinary) Journal Voucher, 2. Advance Journal Voucher, and 3. Miscellaneous Journal Voucher.

(g) How is an Advance (Peski) settled/cleared?

Answer: After the work is completed, the person or institution that received the advance submits the original bills, receipts, and any remaining cash (if any) to the office. The advance is then cleared by correcting or recording the accounts accordingly.

(h) How is an advance settled if the full amount is returned in the next fiscal year?

Answer: If the full advance amount is returned in the next fiscal year, that amount is credited as income under “Consolidated Fund Deposit” or “Cash Deposit” without reversing the prior year’s expenditure — thus clearing the advance.

(i) Why is the budget heading not mentioned when preparing a Miscellaneous Journal Voucher?

Answer: A Miscellaneous Journal Voucher is prepared for non-budgetary transactions (such as security deposit receipts, fund transfers, or fund remittances) that have no direct connection with budgetary expenditure — hence the budget heading is not mentioned.

(j) What is a Payment Order?

Answer: An official directive letter issued by the District Treasury Controller Office (DTCO/KOLENIKA) or an authorised officer to the bank — instructing it to make payment to a relevant person or institution within the approved budget expenditure limit — is called a Payment Order.

(k) Write any two importances of preparing the Bank Cash Book.

Answer: Two importances of preparing the Bank Cash Book: 1. To daily determine the true status of the office’s cash balance, bank balance, and actual budget expenditure, and 2. To prepare the Bank Reconciliation Statement by matching the bank’s records with the office’s accounts.

(l) What is the main objective of the Budget Account?

Answer: To exercise effective control over expenditure so that the allocated budget ceiling is not exceeded, and to clearly show the total expenditure under each budget heading and the remaining budget balance, is the main objective of the Budget Account.

(m) Mention the three sections of the Budget Account.

Answer: The three sections of the Budget Account are: 1. Appropriation Section, 2. Release Section, and 3. Expenditure Section.

(n) On what basis is the Statement of Expenditure prepared?

Answer: The Statement of Expenditure is prepared primarily on the basis of actual figures entered in the Bank Cash Book and the Budget Account.

Section B: Short Answer Questions — Theory [5 Marks]

(a) Introduce Expenditure / Appropriation Accounting. 5 Marks

The system that systematically records, classifies, and reports all financial transactions related to expenditure and budget releases made by government offices within the limits of the budget approved by the legislature is called Expenditure or Appropriation Accounting.

In Nepal, the government maintains Appropriation Accounting using OAG Form No. 208. This system prevents the misuse of the budget and ensures that the amount designated under each heading is spent only for that specific purpose. It plays a crucial role in promoting financial discipline, transparency, and accountability in government bodies.

(b) Give examples of transactions entered in the Simple, Advance, and Miscellaneous Journal Vouchers. 5 Marks

Examples of transactions entered in the various types of Journal Vouchers are presented below:

1. Simple (Ordinary) Journal Voucher:
Example: Furniture worth Rs. 50,000 was purchased for the office and immediate payment was made via cheque. (Here, Budget Heading 22311 is debited as direct expenditure and the DTCO/Bank Single Account is credited.)
2. Advance Journal Voucher:
Example: Ram Bahadur, an office employee, was given an advance of Rs. 10,000 for travel expenses for official work. (Here, the advance is debited in the relevant person’s name and the DTCO/Bank Single Account is credited.)
3. Miscellaneous Journal Voucher:
Example: A security deposit of Rs. 1,00,000 lodged by a contractor was refunded, or funds were transferred (remitted) from one bank account to another. (Such transactions do not affect the budget expenditure.)

The usefulness of Personal and Subsidiary Ledgers in the Government Accounting System can be highlighted in the following points:

To maintain accurate personal records: It helps maintain separate and clear accounts of various individuals, institutions, or firms that have financial dealings with the office.
To monitor advance settlement: It makes it easy to identify which employee or institution received how much advance, how much has been settled, and how much is still outstanding.
To manage security deposits: It makes it convenient to maintain organised records of security deposits lodged by construction contractors or other parties, and to refund them.
To strengthen internal control: It helps maintain mathematical accuracy and control by reconciling the total balance mentioned in the General Ledger with the sum of the Subsidiary Ledger accounts.

(d) “The Bank Cash Book is an integrated account.” Justify this statement. 5 Marks

Yes, the Bank Cash Book is considered a refined and integrated ledger of the Government Accounting System. This can be justified by the following reasons:

Multi-dimensional record: This book records not only cash receipts and payments but also bank transactions, budget expenditure, and advance and deposit-related transactions — all in separate columns on a single page.
Combination of subsidiary and main accounts: It serves the combined function of a Cash Account, a Bank Account, and a Budget Control Account. The complete financial picture of the office is reflected through this single book.
Immediate financial information: By looking at a single book, one can easily understand the office’s bank balance, cash balance, and how much has been spent under each heading — which is why it is called an Integrated Account.

(e) What is a Budget Account? What information is obtained from its preparation? 5 Marks

The account prepared by government offices to maintain a systematic and sequential record of the budget approved, the release received, and the actual expenditure incurred — under each budget heading and sub-heading — is called a Budget Account (Budget Ledger). In Nepal, the Budget Account is maintained using OAG Form No. 208.

The following important information is obtained from its preparation:

Approved Budget Ceiling: How much has been appropriated by the government under the relevant heading for the current fiscal year.
Release Received: How much has been released from the District Treasury Controller Office (DTCO/KOLENIKA) up to now.
Status of Actual Expenditure: How much total has been spent in the relevant month or up to date.
Remaining Budget Balance: Under which heading, and how much budget remains available (budget balance) for additional spending.

(f) Introduce the Statement of Expenditure (Faantwari). 5 Marks

The Statement of Expenditure is a mandatory and important monthly financial report prepared by government offices at the end of each month. In Nepal, it is prepared using OAG Form No. 210 (formerly OAG Form No. 13). This statement mainly covers the following aspects:

Annual budget appropriation amount,
Cumulative expenditure up to the previous month,
Expenditure for the current month and total progress expenditure up to this month,
Remaining budget balance yet to be spent.

After each month ends, the office must prepare this statement and submit it to the District Treasury Controller Office (DTCO/KOLENIKA) and its superior body (department or ministry). It serves as the main foundation for making government expenditure transparent, monitoring the proper use of the budget, and strengthening the national accounting system of the country.

Section C: Practical Numerical Problems [8 Marks] — Journal Vouchers, Payment Orders, Bank Cash Books & Expenditure Statements

Q.(a) Journal Voucher — Department of Roads Office 8 Marks

Question:

Prepare Journal Vouchers for the following transactions of the Department of Roads Office:

1. On Poush 1: Stationery items were purchased and Rs. 3,225 was paid.
2. On Poush 10: The outstanding Field Allowance for the month of Ashadh for Branch Officer Ramala Shah was paid — Rs. 500.
3. On Poush 18: Office house rent of Rs. 7,500 was paid.
4. On Poush 21: Labour wages for repairing the roof of the building were paid — Rs. 500 per person per day for 2 persons for 4 days.
5. On Poush 30: All the above amounts, as paid by the DTCO, were booked as a lump-sum budget release income.

Solution:

Department of Roads Office
Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.	22311	Dr. B.E. Office-related Expenses Cr. DTCO Single Account (Payment made for stationery items purchased)	3,225	3,225
2.	21131	Dr. B.E. Local Allowance Cr. DTCO Single Account (Outstanding Field Allowance of Branch Officer Ramala Shah paid)	500	500
3.	28142	Dr. B.E. House Rent Cr. DTCO Single Account (Office house rent paid)	7,500	7,500
4.	22221	Dr. B.E. Maintenance of Constructed Buildings Cr. DTCO Single Account (Labour wages paid for roof repair — Rs.500 × 2 persons × 4 days)	4,000	4,000
5.		Dr. DTCO Single Account Cr. Budget Release Income (All amounts paid as per DTCO; lump-sum release income booked)	15,225	15,225

Q.(b) Journal Voucher — Agriculture Office, Urlabari 8 Marks

Question:

Prepare Journal Vouchers for the following transactions of the Agriculture Office, Urlabari:

1. On Ashoj 3: Rakesh’s salary of Rs. 24,000 — after deducting Employees’ Provident Fund (EPF) of Rs. 2,400 and Income Tax of Rs. 240 — the net salary was paid, and the deducted amounts were deposited in the bank on the same day.
2. On Ashoj 5: Chief Administrative Officer Ramkrishna Shakya was given a travel expense advance of Rs. 3,800.
3. On Ashoj 11: Surya Printing Press was paid Rs. 9,520 for printing the municipality’s letterheads.
4. On Ashoj 15: House rent for the month of Bhadra — Rs. 20,000 — was paid to the landlord after deducting house rental tax (withholding tax) of Rs. 2,000.
5. On Ashoj 19: Workers were paid Rs. 12,350 for repairing the earthquake-damaged office structure.

Solution:

Agriculture Office, Urlabari
Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.	21111	Dr. B.E. Employee Remuneration Cr. Employees’ Provident Fund (EPF) Cr. Income Tax Cr. DTCO Single Account (Deductions made; net salary paid to Rakesh)	24,000	2,400 240 21,360
1.1		Dr. Employees’ Provident Fund Dr. Income Tax Cr. DTCO Single Account (Deducted amounts deposited in bank on the same day)	2,400 240	2,640
2.		Dr. Chief Administrative Officer, Ramkrishna Shakya — Travel Expense Advance Cr. DTCO Single Account (Travel expense advance given to Ramkrishna Shakya)	3,800	3,800
3.	22315	Dr. B.E. Printing and Publication Cr. DTCO Single Account (Payment made to Surya Printing Press for letterhead printing)	9,520	9,520
4.	28142	Dr. B.E. House Rent Cr. House Rental Tax (Withholding Tax) Cr. DTCO Single Account (House rent paid after deducting rental tax)	20,000	2,000 18,000
5.	22221	Dr. B.E. Maintenance of Constructed Buildings Cr. DTCO Single Account (Workers paid for repairing earthquake-damaged office structure)	12,350	12,350

Q.(c) Payment Order — Education Branch, Jumla 8 Marks

Question:

Enter the following financial transactions of the Education Branch, Jumla, in the Payment Order (Journal Voucher preparation not required):

1. On Ashoj 5: House rent for the month of Bhadra — Rs. 6,000 — was paid to the landlord via cheque.
2. On Ashoj 15: Rs. 1,800 was paid as a travel expense advance to Survey Technician Dayaram Rokka.
3. On Ashoj 19: Carpenter Gagan was paid Rs. 1,250 for repairing the sofa set at the office.
4. On Ashoj 21: Rs. 20,000 in wages for repairing the roof of the building housing the Financial Administration Branch was paid to Citizens Bank, Jumla Branch, Account No. 54268300123.

Solution:

Education Branch, Jumla
Payment Order

S.N.	Name of Payee (Person/Institution)	Purpose of Payment	Bank & Branch	Account No.	Net Payment Amount Rs.
1.	Landlord	Bhadra month house rent	Via Cheque	—	6,000
2.	Survey Tech. Dayaram Rokka	Travel expense advance	Via Cheque	—	1,800
3.	Carpenter Gagan	Sofa set repair wages	Via Cheque	—	1,250
4.	Relevant Workers	Roof repair wages	Citizens Bank, Jumla Branch	54268300123	20,000

Q.(d) Journal Voucher — Suryodaya Municipality Office 8 Marks

Question:

Prepare Journal Vouchers for the following transactions of the Suryodaya Municipality Office:

1. Shrawan 5: Office goods purchased — Rs. 12,500 paid.
2. Shrawan 8: New chairs purchased for the office — Rs. 1,200 paid to Surya Furniture.
3. Shrawan 10: Computer purchased — Rs. 82,500 paid.
4. Shrawan 15: Telephone charges of Rs. 1,250 paid.
5. Shrawan 17: Pramod Dahal was given an advance of Rs. 80,000 to purchase a computer for the office.
6. Shrawan 28: Pramod Dahal submitted a bill for a computer worth Rs. 75,000 — advance cleared, and the remaining Rs. 5,000 was refunded.
7. Shrawan 28: Road construction company was paid Rs. 3,85,500 as per bill submitted.
8. Shrawan 30: All the above amounts paid from the bank were booked as a lump-sum budget release income.

Solution:

Suryodaya Municipality Office
Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.	22311	Dr. B.E. Office-related Expenses Cr. DTCO Single Account (Payment made for office goods purchased)	12,500	12,500
2.	31123	Dr. B.E. Furniture and Fixtures Cr. DTCO Single Account (New chairs purchased; payment made to Surya Furniture)	1,200	1,200
3.	31122	Dr. B.E. Machinery and Equipment Cr. DTCO Single Account (Computer purchased and paid)	82,500	82,500
4.	22112	Dr. B.E. Communication Charges Cr. DTCO Single Account (Telephone charges paid)	1,250	1,250
5.		Dr. Pramod Dahal — Machinery & Equipment Advance Cr. DTCO Single Account (Advance given to Pramod Dahal for computer purchase)	80,000	80,000
6.	31122	Dr. B.E. Machinery and Equipment Dr. DTCO Single Account (cash refund) Cr. Pramod Dahal — Machinery Advance Cleared (Computer bill submitted; Rs.5,000 balance refunded and advance cleared)	75,000 5,000	80,000
7.	31151	Dr. B.E. Roads and Bridges Construction Cr. DTCO Single Account (Road construction company paid as per bill)	3,85,500	3,85,500
8.		Dr. DTCO Single Account Cr. Budget Release Income (All amounts paid from bank; lump-sum release income booked)	5,62,950	5,62,950

Q.(e) Journal Voucher — Far Western Office, Ministry of Health 8 Marks

Question:

Prepare Journal Vouchers for the following transactions of the Far Western Office of the Ministry of Health:

1. Bhadra 2: Total salary of Rs. 77,000 for the month of Shrawan — after deducting EPF of Rs. 14,000 — net salary was paid. The deducted amount was deposited to the Provident Fund on the same day.
2. Bhadra 4: Sub-assistant Ramita Tamrakar was given an advance of Rs. 35,000 to purchase office furniture.
3. Bhadra 6: Travel expenses of Rs. 1,500 were paid to Sub-assistant Binod Gautam.
4. Bhadra 16: Ramita Tamrakar submitted a bill and receipt for furniture worth Rs. 36,000 — the shortfall of Rs. 1,000 was paid and the advance was cleared.
5. Bhadra 19: Carpenter Gagan was paid Rs. 1,250 for repairing the sofa set at the office.
6. Bhadra 22: Rs. 3,500 was paid to Suresh Adhikari for fuel expenses.
7. Bhadra 25: Rs. 3,500 was paid for office telephone and internet charges.
8. Bhadra 30: All the above amounts paid by the DTCO were booked as a lump-sum budget release income.

Solution:

Far Western Office, Ministry of Health
Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.	21111	Dr. B.E. Employee Remuneration Cr. Employees’ Provident Fund (EPF) Cr. DTCO Single Account (EPF deducted; net salary paid)	77,000	14,000 63,000
1.1		Dr. Employees’ Provident Fund Cr. DTCO Single Account (EPF deducted amount deposited on same day)	14,000	14,000
2.		Dr. Sub-Asst. Ramita Tamrakar — Furniture Advance Cr. DTCO Single Account (Advance given to Ramita Tamrakar for furniture purchase)	35,000	35,000
3.	22612	Dr. B.E. Travel Expenses Cr. DTCO Single Account (Travel expenses paid to Binod Gautam)	1,500	1,500
4.	31123	Dr. B.E. Furniture and Fixtures Cr. Sub-Asst. Ramita Tamrakar — Furniture Advance Cleared Cr. DTCO Single Account (Bill submitted; shortfall of Rs.1,000 paid and advance cleared)	36,000	35,000 1,000
5.	22212	Dr. B.E. Maintenance and Operating Expenses Cr. DTCO Single Account (Payment made for sofa set repair)	1,250	1,250
6.	22211	Dr. B.E. Fuel Cr. DTCO Single Account (Fuel expense paid)	3,500	3,500
7.	22112	Dr. B.E. Communication Charges Cr. DTCO Single Account (Telephone and internet charges paid)	3,500	3,500
8.		Dr. DTCO Single Account Cr. Budget Release Income (All amounts paid; lump-sum release income booked)	1,22,750	1,22,750

Q.(f) Journal Voucher — District Coordination Committee, Morang 8 Marks

Question:

Prepare Journal Vouchers for the following transactions of the District Coordination Committee, Morang:

1. Bhadra 1: An advance of Rs. 38,000 was given to ration contractor Gajendra Subeshi.
2. Bhadra 7: Furniture worth Rs. 43,000 was purchased for the office and payment was made to Muskan Suppliers.
3. Bhadra 21: Outstanding Field Allowance for the month of Ashadh for Branch Officer Ramkishor Shah — Rs. 8,500 — was paid.
4. Bhadra 20: Purchase Clerk Sombahadur Rimal was given an advance of Rs. 15,000 to purchase a revolving chair.
5. Bhadra 25: Ration contractor Gajendra Subedi submitted a bill of Rs. 32,000 for rations supplied — advance cleared accordingly.
6. Bhadra 26: Internet charges of Rs. 7,500 were paid for the office.
7. Bhadra 28: Rs. 23,000 was paid for the skill development project training programme expenses.
8. Bhadra 30: All the above amounts paid by the DTCO were booked as a lump-sum budget release income.

Solution:

District Coordination Committee, Morang
Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.		Dr. Ration Contractor Gajendra Subeshi — Ration Advance Cr. DTCO Single Account (Advance given to ration contractor)	38,000	38,000
2.	31123	Dr. B.E. Furniture and Fixtures Cr. DTCO Single Account (Furniture purchased and paid)	43,000	43,000
3.	21131	Dr. B.E. Local Allowance Cr. DTCO Single Account (Outstanding field allowance of Branch Officer Ramkishor Shah paid)	8,500	8,500
4.		Dr. Purchase Clerk Sombahadur Rimal — Furniture Advance Cr. DTCO Single Account (Advance given to purchase revolving chair)	15,000	15,000
5.	21121	Dr. B.E. Clothing and Rations Dr. DTCO Single Account (cash refund) Cr. Ration Contractor Gajendra Subeshi — Advance Cleared (Bill submitted; balance of Rs.6,000 refunded; advance cleared)	32,000 6,000	38,000
6.	22112	Dr. B.E. Communication Charges Cr. DTCO Single Account (Internet charges paid)	7,500	7,500
7.	22512	Dr. B.E. Skill Development and Awareness Training Expenses Cr. DTCO Single Account (Training programme expenses paid)	23,000	23,000
8.		Dr. DTCO Single Account Cr. Budget Release Income (All amounts paid; lump-sum release income booked)	1,35,000	1,35,000

Q.(g) Journal Voucher and Payment Order — District Administration Office, Morang 8 Marks

Question:

Prepare the Journal Voucher and then the Payment Order for the following transactions of the District Administration Office, Morang (Budget Unit Code No. 31401015) (All Nepal Government source):

1. Bhadra 6: Travel expenses of Rs. 1,500 were paid to Sub-assistant Binod Gautam via cheque.
2. Bhadra 12: House rent of Rs. 7,500 was transferred to the landlord Garibram Magar’s account (Account No. 0112453201) at Himalayan Bank, Baneswor.
3. Bhadra 26: Susmita Shrestha submitted a bill and receipt for furniture worth Rs. 36,000 — shortfall of Rs. 1,000 paid to Sanima Bank account No. 3230011022 — advance cleared.

Solution — 1: Journal Voucher (OAG Form No. 203)

S.N.	Code / Sub-heading No.	Particulars of Transaction	Dr. Rs.	Cr. Rs.
1.	22612	Dr. B.E. Travel Expenses Cr. DTCO Single Account (Travel expenses paid via cheque)	1,500	1,500
2.	28142	Dr. B.E. House Rent Cr. DTCO Single Account (House rent transferred to landlord’s bank account)	7,500	7,500
3.	31123	Dr. B.E. Furniture and Fixtures Cr. Susmita Shrestha — Furniture Advance Cleared Cr. DTCO Single Account (Bill submitted; shortfall paid and advance cleared)	36,000	35,000 1,000

Solution — 2: Payment Order

S.N.	Name of Payee	Purpose of Payment	Bank & Branch	Account No.	Net Payment Amount Rs.
1.	Sub-Asst. Binod Gautam	Travel expenses	Via Cheque	—	1,500
2.	Garibram Magar	House rent payment	Himalayan Bank, Baneswor	0112453201	7,500
3.	Susmita Shrestha	Furniture purchase shortfall	Sanima Bank	3230011022	1,000

Q.(h) Payment Order — Agriculture Office, Kalikot 8 Marks

Question:

Enter the following financial transactions of the Agriculture Office, Kalikot in the Payment Order (Journal Voucher preparation not required; all Nepal Government source):

1. Poush 7: Service Nepal Pvt. Ltd. was paid Rs. 25,900 (Himalayan Bank Account No. 032187609) for painting the office building.
2. Poush 8: Chimising Press was paid Rs. 2,310 (Agriculture Development Bank, Kalikot Branch, Account No. 9980086553) for printing letterheads.
3. Poush 15: JTA Lakpa Dorje was given an advance of Rs. 8,000 for purchasing office supplies.
4. On Poush 30 itself: Lump-sum release income was booked as per payments made from the DTCO Single Account.

Solution:

(Since no Journal Voucher is required, the Payment Order is prepared directly. All Nepal Government source:)

Agriculture Office, Kalikot
Payment Order

S.N.	Name of Payee	Purpose of Payment	Bank & Branch	Account No.	Net Payment Amount Rs.
1.	Service Nepal Pvt. Ltd.	Office building painting	Himalayan Bank	032187609	25,900
2.	Chimising Press	Letterhead printing	Agriculture Development Bank, Kalikot	9980086553	2,310
3.	JTA Lakpa Dorje	Office supplies advance	Via Cheque / Bank Transfer	—	8,000

(Note: Transaction No. 4 — “Lump-sum release income booked” — is a non-payment accounting entry and therefore is not entered in the Payment Order.)

Q.(i) Journal Voucher and Bank Cash Book — Land Revenue Office, Ramechhap 8 Marks

Question:

Prepare the Journal Voucher and enter it in the Bank Cash Book for the following transactions of the Land Revenue Office, Ramechhap:

1. Shrawan 12: A Petty Cash Fund of Rs. 15,000 was established by giving an advance to Sanukanchha Maharjan under Expense Heading No. 22311.
2. Shrawan 15: Telephone charges of Rs. 1,250 were paid via cheque.
3. Shrawan 16: A sofa set cover was purchased and Rs. 1,200 was paid via cheque.
4. Shrawan 17: Sub-assistant Indra Dahal was given an advance of Rs. 60,000 to purchase a computer for the office.
5. Shrawan 18: A typewriter was purchased and Rs. 12,500 was paid.
6. Shrawan 18: Stationery items were purchased and Rs. 1,125 was paid.
7. Shrawan 25: Office goods were purchased and Rs. 2,500 was paid.
8. Shrawan 26: Total salary of Rs. 77,000 for the month of Shrawan — after deducting EPF of Rs. 14,000 — net salary was paid. The deducted amount was deposited in the bank on the same day.
9. Shrawan 28: Sub-assistant Indra Dahal submitted a bill for a computer worth Rs. 60,000 — advance cleared.
10. Shrawan 30: All amounts (Rs. 1,70,575) paid as per DTCO payment were booked as a lump-sum budget release income.

Solution — 1: Journal Voucher (OAG Form No. 203)

S.N.	Code	Particulars	Dr. Rs.	Cr. Rs.
1.		Dr. Sanukanchha Maharjan — Petty Cash Fund Advance Cr. DTCO Single Account (Advance given to establish Petty Cash Fund)	15,000	15,000
2.	22112	Dr. B.E. Communication Charges Cr. DTCO Single Account (Telephone charges paid via cheque)	1,250	1,250
3.	31123	Dr. B.E. Furniture and Fixtures (sofa set cover) Cr. DTCO Single Account (Sofa set cover purchased via cheque)	1,200	1,200
4.		Dr. Sub-Asst. Indra Dahal — Computer Purchase Advance Cr. DTCO Single Account (Advance given to Indra Dahal for computer purchase)	60,000	60,000
5.	31122	Dr. B.E. Machinery and Equipment (typewriter) Cr. DTCO Single Account (Typewriter purchased and paid)	12,500	12,500
6.	22311	Dr. B.E. Office-related Expenses Cr. DTCO Single Account (Stationery items purchased and paid)	1,125	1,125
7.	22311	Dr. B.E. Office-related Expenses Cr. DTCO Single Account (Office goods purchased and paid)	2,500	2,500
8.	21111	Dr. B.E. Employee Remuneration Cr. Employees’ Provident Fund (EPF) Cr. DTCO Single Account (EPF deducted; net salary paid)	77,000	14,000 63,000
8.1		Dr. Employees’ Provident Fund Cr. DTCO Single Account (EPF deducted amount deposited in bank on same day)	14,000	14,000
9.	31122	Dr. B.E. Machinery and Equipment Cr. Sub-Asst. Indra Dahal — Computer Advance Cleared (Computer bill submitted; advance cleared)	60,000	60,000
10.		Dr. DTCO Single Account Cr. Budget Release Income (Total payments booked as lump-sum release income)	1,70,575	1,70,575

Solution — 2: Bank Cash Book (OAG Form No. 209)

Date	Particulars	Bank (Dr.)	Bank (Cr.)	Bank (Balance)	Budget Exp. (Code)	Budget Exp. (Rs.)	Advance (Given)	Advance (Cleared)	Misc. (Cr.)
Shrawan 12	Petty Cash Fund advance		15,000	(15,000)	22311	15,000	15,000
Shrawan 15	Telephone charges paid		1,250	(16,250)	22112	1,250
Shrawan 16	Sofa set cover purchased		1,200	(17,450)	31123	1,200
Shrawan 17	Indra Dahal computer advance		60,000	(77,450)	31122	60,000	60,000
Shrawan 18	Typewriter purchased		12,500	(89,950)	31122	12,500
Shrawan 18	Stationery items purchased		1,125	(91,075)	22311	1,125
Shrawan 25	Office goods purchased		2,500	(93,575)	22311	2,500
Shrawan 26	Salary distribution (EPF deducted)		63,000	(1,56,575)	21111	77,000			14,000
“	EPF deposited in bank		14,000	(1,70,575)
Shrawan 28	Indra Dahal computer advance cleared			(1,70,575)	31122	60,000		60,000
Shrawan 30	Lump-sum release received	1,70,575		0					1,70,575
Total		1,70,575	1,70,575	0		2,30,575	75,000	60,000	1,84,575

Q.(j) Journal Voucher and Bank Cash Book — District Administration Office, Morang 8 Marks

Question:

Prepare the Journal Voucher and then the Bank Cash Book for the following transactions of the District Administration Office, Morang:

1. Bhadra 4: Sub-assistant Ramita Tamrakar was given an advance of Rs. 35,000 to purchase office furniture.
2. Bhadra 6: Travel expenses of Rs. 1,500 were paid to Sub-assistant Binod Gautam.
3. Bhadra 7: A Petty Cash Fund of Rs. 2,000 was established in the name of Accountant Ramesh Bastakoti under the stationery expense heading.
4. Bhadra 12: Office house rent of Rs. 7,500 was paid.
5. Bhadra 21: Outstanding Field Allowance for the month of Ashadh for Branch Officer Ram Thapa — Rs. 500 — was paid.
6. Bhadra 26: Ramita Tamrakar submitted a bill and receipt for furniture worth Rs. 36,000 — shortfall of Rs. 1,000 was paid and advance was cleared.
7. Bhadra 30: Total salary of Rs. 30,000 for Bikesh — after deducting EPF of Rs. 6,000 and Income Tax of Rs. 450 — net salary was paid. The deducted amounts were deposited in the bank on the same day.

Solution — 1: Journal Voucher (OAG Form No. 203)

S.N.	Code	Particulars	Dr. Rs.	Cr. Rs.
1.		Dr. Sub-Asst. Ramita Tamrakar — Furniture Advance Cr. DTCO Single Account (Advance given for furniture purchase)	35,000	35,000
2.	22612	Dr. B.E. Travel Expenses Cr. DTCO Single Account (Travel expenses paid to Binod Gautam)	1,500	1,500
3.		Dr. Accountant Ramesh Bastakoti — Petty Cash Fund Advance Cr. DTCO Single Account (Petty Cash Fund established under stationery heading)	2,000	2,000
4.	28142	Dr. B.E. House Rent Cr. DTCO Single Account (House rent paid)	7,500	7,500
5.	21131	Dr. B.E. Local Allowance Cr. DTCO Single Account (Outstanding field allowance of Branch Officer Ram Thapa paid)	500	500
6.	31123	Dr. B.E. Furniture and Fixtures Cr. Sub-Asst. Ramita Tamrakar — Furniture Advance Cleared Cr. DTCO Single Account (Shortfall paid; Ramita Tamrakar advance cleared)	36,000	35,000 1,000
7.	21111	Dr. B.E. Employee Remuneration Cr. EPF Cr. Income Tax Cr. DTCO Single Account (Deductions made; Bikesh’s net salary paid)	30,000	6,000 450 23,550
7.1		Dr. EPF Dr. Income Tax Cr. DTCO Single Account (Deducted amounts deposited in bank on same day)	6,000 450	6,450

Solution — 2: Bank Cash Book (OAG Form No. 209)

Date	Particulars	Bank (Dr.)	Bank (Cr.)	Bank (Balance)	Budget Exp. (Code)	Budget Exp. (Rs.)	Advance (Given)	Advance (Cleared)	Misc. (Cr.)
Bhadra 4	Ramita Tamrakar furniture advance		35,000	(35,000)	31123	35,000	35,000
Bhadra 6	Binod Gautam travel expenses		1,500	(36,500)	22612	1,500
Bhadra 7	Ramesh Bastakoti petty cash fund		2,000	(38,500)	22311	2,000	2,000
Bhadra 12	House rent paid		7,500	(46,000)	28142	7,500
Bhadra 21	Ram Thapa field allowance paid		500	(46,500)	21131	500
Bhadra 26	Ramita advance cleared + shortfall paid		1,000	(47,500)	31123	36,000		35,000
Bhadra 30	Bikesh salary distribution		23,550	(71,050)	21111	30,000			6,450
“	Deductions deposited in bank		6,450	(77,500)
“	Lump-sum release received	77,500		0					77,500
Total		77,500	77,500	0		1,12,500	37,000	35,000	83,950

Q.(k) Journal Voucher and Bank Cash Book — Survey Branch, Jumla 8 Marks

Question:

Enter the Journal Vouchers for the following financial transactions of the Survey Branch, Jumla, in the Bank Cash Book:

1. Ashoj 5: House rent for the month of Bhadra — Rs. 6,000 — paid to the landlord.
2. Ashoj 8: Chandannath Press was paid Rs. 6,500 for printing letterheads.
3. Ashoj 15: Survey Technician Dayaram Rokka was given a travel expense advance of Rs. 1,800.
4. Ashoj 19: Carpenter Gagan was paid Rs. 1,250 for repairing the sofa set at the office.
5. Ashoj 21: Labour wages for repairing the roof of the Survey Branch building — Rs. 500 per person per day for 2 persons for 4 days — were paid.
6. Ashoj 25: Dayaram Rokka completed the trip and submitted a bill of Rs. 2,500 — advance cleared; shortfall of Rs. 700 paid.
7. Ashoj 30: The lump-sum release income for all payments made from the Single Account was booked.

Solution — 1: Journal Voucher (OAG Form No. 203)

S.N.	Code	Particulars	Dr. Rs.	Cr. Rs.
1.	28142	Dr. B.E. House Rent Cr. DTCO Single Account (Bhadra month house rent paid)	6,000	6,000
2.	22315	Dr. B.E. Printing and Publication Cr. DTCO Single Account (Letterhead printing paid to Chandannath Press)	6,500	6,500
3.		Dr. Survey Tech. Dayaram Rokka — Travel Expense Advance Cr. DTCO Single Account (Travel expense advance given to Dayaram Rokka)	1,800	1,800
4.	22212	Dr. B.E. Maintenance and Operating Expenses Cr. DTCO Single Account (Sofa set repair payment made)	1,250	1,250
5.	22221	Dr. B.E. Maintenance of Constructed Buildings (Rs.500×2×4) Cr. DTCO Single Account (Roof repair daily wages paid)	4,000	4,000
6.	22612	Dr. B.E. Travel Expenses Cr. Survey Tech. Dayaram Rokka — Advance Cleared Cr. DTCO Single Account (Bill Rs.2,500; shortfall Rs.700 paid; advance cleared)	2,500	1,800 700
7.		Dr. DTCO Single Account Cr. Budget Release Income (Total payments booked as lump-sum release income)	20,250	20,250

Solution — 2: Bank Cash Book (OAG Form No. 209)

Date	Particulars	Bank (Dr.)	Bank (Cr.)	Bank (Balance)	Budget Exp. (Code)	Budget Exp. (Rs.)	Advance (Given)	Advance (Cleared)	Misc. (Cr.)
Ashoj 5	House rent paid		6,000	(6,000)	28142	6,000
Ashoj 8	Letterhead printing paid		6,500	(12,500)	22315	6,500
Ashoj 15	Dayaram Rokka travel advance		1,800	(14,300)	22612	1,800	1,800
Ashoj 19	Sofa set repair paid		1,250	(15,550)	22212	1,250
Ashoj 21	Roof repair wages paid		4,000	(19,550)	22221	4,000
Ashoj 25	Dayaram advance cleared + shortfall paid		700	(20,250)	22612	2,500		1,800
Ashoj 30	Lump-sum release received	20,250		0					20,250
Total		20,250	20,250	0		22,050	1,800	1,800	20,250

Q.(l) Journal Voucher and Bank Cash Book — Rara National Park 8 Marks

Question:

Prepare the Journal Vouchers for the following transactions of Rara National Park and enter them in the Bank Cash Book:

1. Poush 7: Rs. 16,000 was paid for painting the office building.
2. Poush 8: Chimising Press was paid Rs. 8,515 for printing park letterheads.
3. Poush 15: Forester Lakpa Dorje was given an advance of Rs. 8,000 to purchase office supplies.
4. Poush 19: A carpenter was paid Rs. 750 for repairing a fireplace stove at the office.
5. Poush 20: Purchase Clerk Rambahadur Hamal was given an advance of Rs. 5,000 to purchase a revolving chair.
6. Poush 22: Ration contractor Rajendraraj Joshi was given an advance of Rs. 20,000.
7. Poush 25: Purchase Clerk Rambahadur Hamal submitted a bill of Rs. 4,900 and a bank deposit voucher for Rs. 100 refunded to the Single Account — advance of Rs. 5,000 cleared.
8. Poush 29: Ration contractor Rajendraraj Joshi submitted a bill of Rs. 20,000 for rations supplied in the month of Poush — advance cleared.
9. Poush 30: Forester Lakpa Dorje’s full advance was refunded in cash — advance cleared. The refunded cash was deposited in the bank on the same day.
10. On Poush 30 itself: Lump-sum release income was booked as per payments made from the DTCO.

Solution — 1: Journal Voucher (OAG Form No. 203)

S.N.	Code	Particulars	Dr. Rs.	Cr. Rs.
1.	22221	Dr. B.E. Maintenance of Constructed Buildings Cr. DTCO Single Account (Office building painting paid)	16,000	16,000
2.	22315	Dr. B.E. Printing and Publication Cr. DTCO Single Account (Letterhead printing paid)	8,515	8,515
3.		Dr. Forester Lakpa Dorje — Office Supplies Advance Cr. DTCO Single Account (Advance given to Lakpa Dorje for office supplies)	8,000	8,000
4.	22212	Dr. B.E. Maintenance and Operating Expenses Cr. DTCO Single Account (Carpenter paid for fireplace stove repair)	750	750
5.		Dr. Purchase Clerk Rambahadur Hamal — Furniture Advance Cr. DTCO Single Account (Advance given to purchase revolving chair)	5,000	5,000
6.		Dr. Ration Contractor Rajendraraj Joshi — Ration Advance Cr. DTCO Single Account (Ration advance given to contractor Joshi)	20,000	20,000
7.	31123	Dr. B.E. Furniture and Fixtures Dr. DTCO Single Account (cash refund Rs.100) Cr. Rambahadur Hamal — Advance Cleared (Bill Rs.4,900 and refund Rs.100 deposited; advance cleared)	4,900 100	5,000
8.	21121	Dr. B.E. Clothing and Rations Cr. Rajendraraj Joshi — Ration Advance Cleared (Bill submitted for rations supplied; advance cleared)	20,000	20,000
9.		Dr. DTCO Single Account (cash refund deposited) Cr. Forester Lakpa Dorje — Advance Cleared (Full advance refunded in cash; deposited in bank; advance cleared)	8,000	8,000
10.		Dr. DTCO Single Account Cr. Budget Release Income (Total payments booked as lump-sum release income)	50,165	50,165

(Note: Net release income = 16,000 + 8,515 + 750 + 4,900 (Rambahadur net spend) + 20,000 = Rs. 50,165)

Solution — 2: Bank Cash Book (OAG Form No. 209)

Date	Particulars	Bank (Dr.)	Bank (Cr.)	Bank (Balance)	Budget Exp. (Code)	Budget Exp. (Rs.)	Advance (Given)	Advance (Cleared)	Misc. (Cr.)
Poush 7	Building painting paid		16,000	(16,000)	22221	16,000
Poush 8	Letterhead printing paid		8,515	(24,515)	22315	8,515
Poush 15	Lakpa Dorje office supplies advance		8,000	(32,515)	22311	8,000	8,000
Poush 19	Fireplace stove repair paid		750	(33,265)	22212	750
Poush 20	Rambahadur Hamal furniture advance		5,000	(38,265)	31123	5,000	5,000
Poush 22	Joshi ration advance		20,000	(58,265)	21121	20,000	20,000
Poush 25	Rambahadur advance cleared (Rs.100 refund to bank)	100		(58,165)	31123	4,900		5,000
Poush 29	Joshi ration advance cleared			(58,165)	21121	20,000		20,000
Poush 30	Lakpa Dorje cash refund deposited in bank	8,000		(50,165)				8,000
“	Lump-sum release received	50,165		0					50,165
Total		58,265	58,265	0		83,165	33,000	33,000	50,165

Q.(m) Monthly Statement of Expenditure for Ashoj — Provincial Ministry of Economic Affairs and Planning 8 Marks

Question:

Prepare the Monthly Statement of Expenditure for the month of Ashoj based on the following data of the Provincial Ministry of Economic Affairs and Planning:

Exp. Code	Expenditure Heading	Annual Budget Rs.	Exp. up to Bhadra Rs.	Ashoj Exp. Rs.	Advance Rs.
21111	Employee Remuneration	1,50,000	20,000	70,000	—
21139	Other Allowances	8,000	5,000	2,000	—
22311	Stationery (Office-related) Expenses	5,000	—	1,000	500
22313	Books and Materials Expenses	2,000	—	300	—
28142	House Rent	25,000	25,000	2,000	—
31123	Furniture and Fixtures	70,000	80,000	15,000	5,000
31122	Machinery and Equipment	90,000	1,000	5,000	—
	Total	3,50,000	1,32,500 *	95,300	5,500

* Working Note: Exp. up to Bhadra for 22311 = Rs. 1,500 (derived: total Bhadra column 1,32,500 minus sum of other headings 1,31,000). Exp. up to Ashoj = Exp. up to Bhadra + Ashoj Exp.

Solution:

Monthly Statement of Expenditure for Ashoj (OAG Form No. 210)

Exp. Code	Expenditure Heading	Annual Budget (Rs.)	Release up to Ashoj (Rs.)	Exp. up to Bhadra (Rs.)	Ashoj Exp. (Rs.)	Exp. up to Ashoj (Rs.)	Advance (Rs.)	Net Exp. excl. Advance (Rs.)	Remaining Budget (Rs.)
21111	Employee Remuneration	1,50,000	90,000	20,000	70,000	90,000	—	90,000	60,000
21139	Other Allowances	8,000	7,000	5,000	2,000	7,000	—	7,000	1,000
22311	Stationery Expenses	5,000	2,500	1,500	1,000	2,500	500	2,000	2,500
22313	Books and Materials	2,000	300	—	300	300	—	300	1,700
28142	House Rent	25,000	27,000	25,000	2,000	27,000	—	27,000	(2,000)
31123	Furniture and Fixtures	70,000	95,000	80,000	15,000	95,000	5,000	90,000	(25,000)
31122	Machinery and Equipment	90,000	6,000	1,000	5,000	6,000	—	6,000	84,000
	Grand Total	3,50,000	2,27,800	1,32,500	95,300	2,27,800	5,500	2,22,300	1,22,200

Q.(n) Monthly Statement of Expenditure for Poush — Provincial Ministry of Economic Affairs and Planning 8 Marks

Question:

The Provincial Ministry of Economic Affairs and Planning has provided the following budget and expenditure data for the month of Poush. Prepare the Monthly Statement of Expenditure for Poush.

Exp. Code	Expenditure Heading	Annual Budget Rs.	Exp. up to Mangsir Rs.	Poush Exp. Rs.	Advance Rs.
21111	Employee Remuneration	5,00,000	1,90,000	— *	—
21139	Other Allowances	50,000	23,000	10,000	—
22212	Fuel (Office use)	25,000	12,000	500	—
22311	Stationery Expenses	25,000	11,000	5,000	1,000
22711	Miscellaneous Expenses	10,000	3,500	500	—
31121	Vehicles	9,00,000	2,50,000	50,000	10,000
31123	Furniture and Fixtures	1,50,000	1,20,000	19,000	—
	Total	16,60,000	6,09,500	1,23,500 †	11,000

* Working Note (21111 Poush Exp.): Total Poush exp. is Rs.1,23,500. Sum of other headings’ Poush exp. = 10,000+500+5,000+500+50,000+19,000 = Rs.85,000. Therefore 21111 Poush exp. = 1,23,500 − 85,000 = Rs.38,500.

Solution:

Monthly Statement of Expenditure for Poush (OAG Form No. 210)

Exp. Code	Expenditure Heading	Annual Budget (Rs.)	Release up to Poush (Rs.)	Exp. up to Mangsir (Rs.)	Poush Exp. (Rs.)	Exp. up to Poush (Rs.)	Advance (Rs.)	Net Exp. excl. Advance (Rs.)	Remaining Budget (Rs.)
21111	Employee Remuneration	5,00,000	2,28,500	1,90,000	38,500	2,28,500	—	2,28,500	2,71,500
21139	Other Allowances	50,000	33,000	23,000	10,000	33,000	—	33,000	17,000
22212	Fuel (Office use)	25,000	12,500	12,000	500	12,500	—	12,500	12,500
22311	Stationery Expenses	25,000	16,000	11,000	5,000	16,000	1,000	15,000	9,000
22711	Miscellaneous Expenses	10,000	4,000	3,500	500	4,000	—	4,000	6,000
31121	Vehicles	9,00,000	3,00,000	2,50,000	50,000	3,00,000	10,000	2,90,000	6,00,000
31123	Furniture and Fixtures	1,50,000	1,39,000	1,20,000	19,000	1,39,000	—	1,39,000	11,000
	Grand Total	16,60,000	7,33,000	6,09,500	1,23,500	7,33,000	11,000	7,22,000	9,27,000