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

Arjun EP

Published on: July 14, 2021

Bank Cash Book | Journal Vouchers and Bank Cash Book | AGF 209 | 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: 2A

The following data is given by District Post Office:

Bhadra 1: Received through DTCO for bank order $130,000 and budget release for $100,000.

Bhadra 4: Paid for $10,000 for consultancies fees.

Bhadra 15: Paid $8,000 to Section Officer (SO) Mr Pandey for computer printer purchase as advance.

Bhadra 28: House rent paid to House Owner for Shrawan, Bhadra and Ashwin @ $12,000 per month.

Bhadra 30: SO Mr Pandey cleared his advance by submitting computer printer bill of $13,000.

Bhadra 31: Letter of credit (L/C) of $100,000 issued in-favour-of Bajaj Auto Ltd for motorbike.

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

[Answer: DTCO balance = $1,000]

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						130,000
			Cr Revolving fund							30,000
			Cr Budget release							100,000
			(Being: budget received)

	22411		Dr BE Consultancy fess						10,000
			Cr DTCO/NRB single account							10,000
			(Being: paid for consultancy fees)

			Dr SO Mr Pandey						8,000
			(advance for printer)
			Cr DTCO single account							8,000
			(Being− advance for printer)

	22121		Dr BE House rent						24,000
			Dr House owner						12,000
			(advance for rent)
			Cr DTCO Single Account							36,000
			(Being: rent paid & paid in advance)

	29511		Dr BE Computer printer						13,000
			Cr DTCO single account							5,000
			Cr SO Mr Pandey							8,000
			(advance cleared)

			Dr Bajaj Auto Ltd						70,000
			(advance for vehicle)
			Cr DTCO single account							70,000
			(Being- L/C opened to purchase vehicle)

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				District Post Office											State Govt
				Office Code No. 361
				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							Nil
4		Budget received				130,000			130,000										30,000 100,000
15		Consultancy fess					10,000		120,000	22411	10,000
28		Advance given to Mr Pandey					8,000		112,000			8,000
30		Rent paid and paid in advance					36,000		76,000	22121	24,000	12,000
31		Advance cleared					5,000		71,000	29511	13,000 (8,000)		8,000
		L/C opened					70,000		1,000								70,000
Total of this month			Nil		Nil	130,000	129,000		1,000		39,000	20,000	8,000	Nil		Nil	70,000		130,000
Total upto last month
Total upto this month

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

PROBLEM: 2B

The following data is given by District Veterinary Hospital:

Kartik 1:	Petty cash balance $1,000 and debit balance at bank (DTCO) $30,000
Kartik 3:	Paid $10,000 to Mr Kamal for purchase of computer software in advance.
Kartik 8:	Additional budget released for $150,000 through DTCO.
Kartik 15:	Paid for the reimbursement for petty cash:
	Wages	$300	Water bill	$150
	Stationery	$80	Repair	$250
Kartik 29:	Paid to house owner for rent for the month $13,500 after deducting 10% tax.
Kartik 30:	Basic salary of the month $70,000 and field allowance $5,000 was distributed after deducting PF $14,000 and social security and income tax $2,000.

Required: (a) Journal voucher; (b) Posting into bank cash book

[Answer: DTCO/NRB balance = $20,720]

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 Kamal						10,000
			(advance for software)
			Cr DTCO Single Account							100,000
			(Being: advance given)

			Dr DTCO Single Account						80,000
			Cr Additional Budget							80,000
			(Being: additional budget released)

	21111		Dr BE Wages						300
	22111		Dr BE Water bill						150
	22311		Dr BE Stationery						80
	22212		Dr BE Repair						250
			Cr DTCO Single Account							780
			(Being: reimbursement for petty cash)

	22121		Dr BE House rent						15,000
			Cr Rent tax							1,500
			Cr DTCO Single Account							13,500
			(Being: rent paid after tax)

	21111		Dr BE Salary						77,000
	21114		Dr BE Field allowance						5,000
			Cr Provident fund							14,000
			Cr Income tax							2,000
			Cr DTCO Single Account							66,000
			(Being: salary & allowance paid)

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				District Veterinary Hospital											State Govt
				Office Code No. 321
				Bank Cash Book
				For the month of Kartik
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budget Exp		Advance CY		Advance LY			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Balance	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			30,000			31,000
3		Advance given					10,000		21,000			10,000
8		Budget received				80,000			101,000										80,000
15		Reimbursement					780		100,220	21111	300
		of petty cash fund								22111	150
										22311	80
										22212	250
29		Rent paid					13,500		86,720	22121	15,000								1,500
30		Salary and					66,000		20,720	21111	77,000								7,000
		allowance paid								21114	5,000								2,000
Total of this month			1,000		Nil	110,000	90,280		20,720		97,780	10,000	Nil	Nil		Nil	Nil		90,000
Total upto last month
Total upto this month

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

PROBLEM: 2C

The following extracted transactions are given by Mechi Community Hospital:

(a)	DTCO/NRB has overdraft balance $150,000.
(b)	Budget release order for the actual expenditure of $800,000 of previous month but bank (treasury) order received for $700,000.
(c)	Paid for blankets distribution to old-age home $20,000 (social security)
(d)	First running bill of building construction approved of $200,000; paid after deducting 5% security deposit, 2% equipment service charge.
(e)	Paid $150,000 for hospital equipment
(f)	Advance of last year cleared responsibility transferred to junior accountant Aftab for medicine purchase bill $54,750 and bank deposit slip $5,250.
(g)	Basic salary of the month is $800,000 paid after deducting PF as per government of Nepal and income tax $55,320 and Citizen Investment Trust $50,000 through DTCO.

Required: Bank cash book

[Answer: Total salary $880,000; PF = 160,000;

DTCO/NRB balance overdraft = $515,430]

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						700,000
			Dr Imprest fund						100,000
			Cr Budget release							800,000
			(Being: budget released)

	27111		Dr BE Social security						20,000
			Cr DTCO Single Account							20,000
			(Being: blanket distributed)

	29221		Dr BE Building						200,000
			Cr Security deposit							10,000
			Cr Equipment charge							4,000
			Cr DTCO Single Account							186,000
			(Being: construction bill paid)

	29511		Dr BE Hospital equipment						150,000
			Cr DTCO Single Account							150,000
			(Being: equipment purchased)

	22531		Dr BE Medicine						54,750
			Dr DTCO Single Account						5,250
			Cr Aftab							60,000
			(advance cleared)
			(Being: advance cleared)

	21111		Dr BE Salary						880,000
			Cr Provident fund							160,000
			Cr Income tax							55,320
			Cr Citizen Investment Trust							50,000
			Cr DTCO Single Account							614,680
			(Being: salary paid)

Again,

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				District Veterinary Hospital											State Govt
				Office Code No. 321
				Bank Cash Book
				For the month of …
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budget Exp		Advance CY		Advance LY			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Balance	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
a.		Overdraft balance							(150,000)
b.		Budget received				700,000			550,000								100,000		800,000
c.		Social service					20,000		530,000	27111	20,000
d.		Building cons. bill					186,000		344,000	29721	200,000								10,000
																			4,000
e.		Equipment purch.					150,000		194,000	29511	150,000
f.		Advance cleared				5,250			199,250	22531	54,750			60,000		60,000
											(60,000)
g.		Salary paid					614,680		(515,430)	21111	880,000								160,000
																			55,320
																			50,000
Total of this month									(515,430)
Total upto last month
Total upto this month

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

PROBLEM: 2D

The following extracted transactions are given by Province Level Office:

(a)	Petty cash balance $1,000 DTCO has debit balance $81,225.
(b)	Machine purchased and bill submitted to DTCO for $50,000.
(c)	Budget released equal to 1/6^th of the previous year’s budget of $18,00,000.
(d)	Issued a cheque of $90,000 after deducting 5% contract tax and 5% security deposit for the building construction.
(e)	Opened a Letter of Credit (L/C) of $60,000 in favour of HCL Company, India for importing a machine; bank charge $2,000 paid for the same.
(f)	Transfer of $2,000 from salary budget to house rent budget by taking prior permission.
(g)	Out of total salary of $88,000 and local allowance of $12,000 for the month paid through DTCO after deduction provident fund $16,000, social security tax $4,000 and salary advance clearance $5,000. The deducted amounts were deposited into concerned offices on the same date.
	…..

Required: Bank cash book

[Answer: DTCO $85,225]

*No entry for budget transferred

SOLUTION

Given and working note:

Dr BE Machinery 50,000	Dr DTCO Single Account 300,000	Dr BE Building construction 100,000	Dr HCL Company 60,000
Cr DTCO Single Account 50,000	Cr Budget released 300,000	Cr Contract tax 5,000	(advance for machinery)
		Cr Security deposit 5,000	Dr Bank change (22311) 2,000
		Cr DTCO Single Account 90,000	Cr DTCO Single Account 62,000


Dr BE Salary 2,000	Dr BE Salary 88,000	Dr PF 16,000
Cr BE House rent 2,000	Dr BE Local allowance 12,000	Dr SS tax 4,000
	Cr PF 16,000	Cr DTCO Single Account 20,000
	Cr SS tax 4,000
	Cr Advance salary 5,000
	Cr DTCO Single Account 75,000

				Central/Province/Local Level														AGF No. 209
Stamp of				Government of Nepal											Stamp of
Nepal Govt				Province Level Office											State Govt
				Office Code No. 346
				Bank Cash Book
				For the month of …
Budget Sub-head No.
Date	VN	Particulars	Cash			DTCO single account				Budgeted		Advance		Advance			Miscellaneous			Rem.
			Dr		Cr	Dr	Cr	Ch	Bal.	BH No.	$/Rs	Given	Cleared	Given		Cleared	Dr		Cr
1	2	3	4		5	6	7	8	9	10	11	12	13	14		15	16		17	18
a.		Balance b/d	1,000			81,225			82,225
b.		Machine purch.					50,000		32,225	29511	50,000
c.		Budget released				300,000			332,225										300,000
d.		Building const.					90,000		242,225	29221	100,000								5,000
																			5,000
e.		Advance given					62,000		180,225			60,000					2,000
g.		Salary and					75,000		105,225	21111	88,000								16,000
		allowance paid								21112	12,000								4,000
																			5,000
		PF and tax					20,000		85,225								16,000
		deposited															4,000
Total of this month			1,000		Nil	381,225	297,000		85,225		250,000	60,000	Nil	Nil		Nil	22,000		335,000
Total upto last month
Total upto this month