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Bank Cash Book | Journal Vouchers and Bank Cash Book | AGF 209

Arjun EP

Published on: July 11, 2021

Bank Cash Book | Journal Vouchers and Bank Cash Book | Government Accounting

Procedures to posting in bank cash book

Step 1:	prepare goswara voucher,
Step 2:	record cash transactions in cash column as debit and credit,
Step 3:	record bank transactions in DTCO column as debit, credit and find out balance,
Step 4:	record budget expenditure amount in budget column with budget head,
Step 5:	record advance transactions of current year in advance column as advance given (debit) and advance cleared (credit),
Step 6:	record advance transactions of last year in advance column as advance given (debit) and advance cleared (credit),
Step 7:	rest of other (except cash, bank, budget expenditure and advance) transactions are recorded in miscellaneous expenditures as debit and credit.
Step 8:	do the total of amount column except DTCO balance.

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Keep in Mind (KIM)

Advance cleared amount is recorded in two places.

First in advance cleared column and second in budget expenditure column in bracket (1234).

Here, amount in bracket means negative value.

It is deducted while adding.

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country

PROBLEM: 1A

Following extracted information is given by Village Municipality, Nawalparasi for the month of Ashadh:

(a) Bank/DTCO balance $50,000.

(b) Purchase office materials $10,000.

(d) Advance is given to Subba Basant $15,000 for computer printer.

(e) Total salary of the month $55,000 paid after deducting provident fund of $10,000.

(f) Subba Basant submitted bill of $16,550 for the clearance of advance for computer printer.

Required: Goswara voucher and bank cash book

[Answer: Bank/DTCO balance = $128,350]

SOLUTION

Journal Voucher

SN	Code	Activities	Particulars	LF	Sources				Debit	Credit
	Sub-head	Program			Level	Bearer	Type	Payment	Amount	Amount
	No.	Code No.				Orgⁿ		mode
	22311		Dr BE Office materials						10,000
			Cr DTCO single account							10,000
			(Being: office materials purchased)

			Dr DTCO single account						150,000
			Cr Budget release							150,000
			(Being: budget received)

			Dr Subba Basant						15,000
			(advance for printer)
			Cr DTCO							15,000
			(Being: advance is given to Basanta)

	21111		Dr BE Salary						55,000
			Cr Provident fund							10,000
			Cr DTCO single account							45,000
			(Being: salary paid after deducting PF)

	29511		Dr BE Computer printer						16,550
			Cr DTCO single account							1,550
			Cr Subba Basant							15,000
			(advance cleared)

Explain:

(a) Write bank balance on bank column.

(b) Write BE amount 10,000 on amount BE column; write budget head number in BH No.

(c) Write debit amount on bank column; write budget release amount on credit column of miscellaneous column

(d) Write advance given in advance given column; write DTCO credit amount in credit column and find balance

(e) Write BE amount in 55,000 on BE amount column; write credit DTCO amount 45,000 on bank column; write 10,000 credit amount on miscellaneous Cr column

(f) advance cleared 15,000 is recorded in two places; first in advance cleared, second in BE amount column in bracket or minus; excess amount 1,650 is paid through bank.

Note: Do the sum and find out balance of bank (DTCO) amount each time if it affects.

SOLUTION:

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				Village Municipality, Nawalparasi											State Govt
				Office Code No. 182
				Bank Cash Book
				For the month of Ashadh
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budget Exp		Advance CY		Advance LY			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Bal.	BH No.	$/Rs	Given	Cleared	Resp. Tr		Cleared	Dr		Cr
1	2	3	4		5	6	7	8	9	10	11	12	13	14		15	16		17	18
		Opening balance							50,000
		Office materials purchased					10,000		40,000	22311	10,000
		Budget received				150,000			190,000										150,000
		Advance given to Basant					15,000		175,000			15,000
		Salary paid after deducting PF					45,000		130,000	21111	55,000								10,000
		Advance cleared by Basant Thapa					1,550		128,450	29511	16,550 (15,000)		15,000
Total of this month			Nil		Nil	150,000	61,650		128,450		66,550	15,000	15,000	Nil		Nil	Nil		160,000
Total upto last month
Total upto this month

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country

PROBLEM: 1B

Village Municipality Office, Achham has following information:

Shrawan 1:	Petty cash $1,000 and DTCO debit balance $42,000 and credit balance $5,000.
Shrawan 4:	Bank (treasury) order and imprest fund released $100,000.
Shrawan 5:	Internet bill paid of $2,750.
Shrawan 10:	Paid to Subba Mahesh as advance $25,000 for machinery.
Shrawan 25:	Subba Mahesh submitted machinery bill for $28,000
Shrawan 31:	Out of the total salary of the month $44,000, paid after deducting $8,000 provident fund, $3,000 income tax and $5,000 citizen Investment Trust.

Required: (a) Goswara voucher; (b) Bank cash book

[Answer: NRB/DTCO balance = $79,250]

SOLUTION:

Journal Voucher

SN	Code	Activities	Particulars	LF	Sources				Debit	Credit
	Sub-head	Program			Level	Bearer	Type	Payment	Amount	Amount
	No.	Code No.				Orgⁿ		mode
			Dr DTCO single account						100,000
			Cr Budget release							100,000
			(Being: budget received)

	22112		Dr BE Internet bill						2,750
			Cr DTCO							2,750
			(Being: internet bill paid)

			Dr Mahesh						25,000
			(advance for machinery)							25,000
			Cr DTCO
			(Being: advance given for machine)

	29511		Dr BE Machinery						28,000
			Cr DTCO single account							3,000
			Cr Subba Mahesh							25,000
			(advance cleared)

	21111		Dr BE Salary						44,000
			Cr Provident fund							8,000
			Cr Income tax							3,000
			Cr Citizen Investment Trust							5,000
			Cr DTCO single account							28,000
			(Being: salary paid after deducting PF, IT and CIT)

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				Village Municipality Office, Achham											State Govt
				Office Code No. 147
				Bank Cash Book
				For Shrawan 2078 (July 2021)
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budget Exp		Advance CY		Advance LY			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Bal.	BH No.	$/Rs	Given	Cleared	Resp. Tr		Cleared	Dr		Cr
1	2	3	4		5	6	7	8	9	10	11	12	13	14		15	16		17	18
1		Opening balance	1,000			42,000	5,000		38,000
4		Budget received				100,000			138,000										100,000
5		Internet bill paid					2,750		135,250	22212	2,750
10		Advance given to Subba Mahesh					25,000		110,250			25,000
25		Advance cleared by Subba Mahesh					3,000		107,250	29511	28,000 (25,000)		25,000
31		Salary paid after deducting PF, IT, CIT					28,000		79,250	21111	44,000								8,000 3,000 5,000
Total of this month			1,000			142,000	58,750		79,250		49,750	25,000	25,000	Nil		Nil	Nil		116,000
Total upto last month
Total upto this month

Note: DTCO balance in column 9

= (4 Dr + 6 Dr) – (5 Cr +7 Cr)

= (1,000 + 42,000) – (Nil + 5,000)

= 43,000 – 5,000

= $38,000

PROBLEM: 1C

The following data is given by Village Municipality Office, Dhading:

Bhadra 1:	NRB/DTCO balance $15,000 and cash balance $800.
Bhadra 4:	Bank (treasury) order $90,000 and budget released $122,000.
Bhadra 15:	Office assistant Sarita submitted furniture purchase bill of $18,000 and cleared her advance $20,000.
Bhadra 30:	Salary paid through DTCO (cheque) $44,500 after deducting $10,000 provident fund and $500 social security tax.
Bhadra 31:	Deducted amount deposited into concerned offices.

Required: Bank cash book

[Answer: DTCO balance = $42,000]

SOLUTION:

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				Village Municipality Office, Dhadhing											State Govt
				Office Code No. 258
				Bank Cash Book
				For the month of Bhadra
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budget Exp		Advance CY		Advance LY			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Bal.	BH No.	$/Rs	Given	Cleared	Resp. Tr		Cleared	Dr		Cr
1	2	3	4		5	6	7	8	9	10	11	12	13	14		15	16		17	18
1		Opening balance	800			15,000			15,800
4		Budget received				90,000			105,800								32,000		122,000
15		Internet bill paid				2,000			107,800	29311	18,000 (20,000)		20,000
30		Salary paid after deducting PF & SST)					44,500		63,300	21111	55,000								10,000 500
31		PF and SST deposited					10,500		52,800								10,000 500
Total of this month			800			107,000	55,000		42,000		53,000	Nil	20,000	Nil		Nil	42,500		132,500
Total upto last month
Total upto this month

Note: DTCO balance in column 9

= (4 Dr + 6 Dr) – (5 Cr +7 Cr)

= (800 + 15,000) – (Nil + Nil)

= $15,800

#####

PROBLEMS AND ANSWERS OF BANK CASH BOOK AGF 209

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country

PROBLEM: 1A

Following extracted information is given to you a Local Level Office:

(a) Bank has debit balance $22,000 and credit balance has $7,000.

(b) Received for bank (treasury) order $150,000 and budget released for $100,000 through DTCO.

(d) Ms Srijna submitted materials bill for $8,000 and bank (treasury) voucher Rs 2,000.

Required: Goswara voucher and bank cash book

[Answer: DTCO balance = $157,000]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country

PROBLEM: 1B

Village Municipality Office has following information:

Shrawan 1:	NRB/DTCO balance $37,000.
Shrawan 4:	Bank (treasury) order and budget released $120,000 through DTCO.
Shrawan 10:	Advance given to assistant Sanjay for field allowance $5,000.
Shrawan 25:	Assistant Sanjay submitted field allowance bill for $7,000 and paid for due amount.
Shrawan 31:	Out of the total salary of the month $49,500 paid after deducting $9,000 provident fund and $3,000 income tax.

Required: (a) Goswara voucher; (b) Bank cash book

[Answer: DTCO balance = $112,500]

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = ₦ = Birr = Currency of your country

PROBLEM: 1C

The following data is given by Village Municipality Office:

Bhadra 1:	DTCO balance $15,000 and cash balance $1,000 through DTCO.
Bhadra 4:	Bank (treasury) order and revolving fund released $150,000.
Bhadra 15:	Office assistant Sarita submitted furniture purchase bill of $25,000 and cleared her advance $20,000.
Bhadra 30:	Salary paid for the month $85,000 after deducting $20,000 provident fund and $5,000 income tax.
Bhadra 31:	Deducted amount deposited into concerned offices.