Journal Voucher | Revolving Fund | Budget Release

 

  

Journal Voucher | Revolving Fund Released | Budget Release

Imprest means advance of money or advance payment of money.

Imprest fund release concept has been introduced from the fiscal year BS 2051/52.

Initial revolving fund will be released to every operating level at the beginning of every fiscal year.

The government provides advance (imprest) money to the government offices.

It is equal to 1/6^th of the total budget of the previous fiscal year viz equals to two months.

 

Initial revolving fund is released at the beginning of the fiscal year before the finance bill is passed.

Addition or deduction can be made on imprest (advance) fund amount released.

When financial bill is approved for the office, it may be more or less amount. 

 

Operating level offices manage the operating expenditures out of the revolving fund.

At the end of every month, statement of expenditure, bank cash book and other statements are submitted to the central level office for budget of next month.

Then central level office releases equal expenditures amount of last month as budget release. 

This process will continue upto the end of fiscal year.

If there is any remaining revolving or imprest fund at the end of the fiscal year, it will be closed budget freeze account.

 

 

Types of Journal Vouchers | Types of General Journal Vouchers

Under new accounting system of Government of Nepal, journal vouchers are classified into following three categories; they are:

(A)	Journal voucher for expenditure transactions
(B)	Journal voucher for advance and clearance of advance transactions
(C)	Journal voucher for miscellaneous transactions
	(a)	Revolving or imprest or advance fund released
	(b)	Budget release
	(c)	Salary and its deduction
	(d)	Establishment of petty cash fund
	(e)	Security deposit
	(f)	Budget transfer
	(g)	Inter office loan
	(h)	Rectification of errors
	(i)	Annual accounting closing

 

 

Keep in Mind (KIM)

For budget release, authorised person of the operating level office submits covering letter with statement of expenditure and bank cash book in the central level office.

 

 

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

PROBLEM: 1A

On 3^th Ashadh 2078, Village Municipality Office, Pyuthan received initial revolving fund equal to 1/6^th of total expenditures of previous fiscal year Rs 42,00,000 from the central level office through bank transfer.

Required: Journal Voucher

[Answer:  Rs 700,000]

SOLUTION:

AGF No. 203

Central/Province/Local Level

Government of Nepal

Village Municipality Office, Pyuthan

Date: 2078–03–03

Office Code No. 125

JV No. 1

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Receipt

Budget Sub-head No.

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

7,00,000

Cr Initial revolving fund

7,00,000

Total

7,00,000

7,00,000

Amount in words: seven lakh only

Brief narration of transaction: initial revolving fund received equal to 1/6th of Rs 42,00,000 viz 42,00,000 x 1/6

Attach documents:

For payment purpose

SN

Payment receiver’s name

Bank Account No./Slip No.

Folio No.

Payment Amount

1

2

Total

Prepared by:

ABC

Submitted by:

MNO

Approved by:

XYZ

Date:

2078–03–03

Date:

2078–03–03

Date:

2078–03–03

Designation:

Jr. Accountant

Designation:

Accountant

Designation:

Officer

 

 

 

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Budget Release | Budget Release in Journal Voucher

According to current budget released system of government accounting, each operating level offices receives actual expenditure of previous month.

When operating level office needs budget for current month, it should deposit some documents for budget release to district treasury office within the first week of each month.

Budget release is based on revolving fund system.

Following documents are needed for budget release:

Monthly expenditure report AGF No. 210

Monthly uncleared advance expenditure report AGF No. 211

Bank reconciliation statement AGF No. 212

 

Source wise expenditure report for foreign assistant.

There are three methods for budget release; they are:

Amount of budget release order is equal to bank (treasury) order

Amount of budget release order is less than bank (treasury) order

Amount of budget release order is more than bank (treasury) order

 

 

Keep in Mind (KIM)

When budget released or  fund is received as bank order from DTCO:

Dr DTCO single account

Dr/Cr Revolving Fund or Additional revolving fund

Cr Budget released

 

 

(1) Amount of budget release order is equal to bank (treasury) order (Bank = Budget)

Sometimes budget release order (DTCO) may be equal to budget release; in this condition:

 

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

PROBLEM: 1B

On 3^th Ashadh 2078, Village Municipality Office, Pyuthan received budget release order letter from DTCO for the amount equal to the expenditure of the previous month of Rs 350,000.

Required: Journal Voucher

[Answer: Dr OTC = Rs 350,000]

SOLUTION:

AGF No. 203

Central/Province/Local Level

Government of Nepal

Village Municipality Office, Pyuthan

Date: 2078–03–03

Office Code No. 123

JV No. 2

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Receipt

Budget Sub-head No.

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

350,000

Cr Budget release

350,000

Total

350,000

350,000

Amount in words: three lakh fifty thousand received.

Brief narration of transaction: budget released equal to previous month.

Attach documents:

For payment purpose

SN

Payment receiver’s name

Bank Account No./Slip No.

Folio No.

Payment Amount

1

2

Total

Prepared by:

ABC

Submitted by:

MNO

Approved by:

XYZ

Date:

2078–03–03

Date:

2078–03–03

Date:

2078–03–03

Designation:

Jr. Accountant

Designation:

Accountant

Designation:

Officer

 

 

 

(2) Amount of budget release order is less than bank (treasury) order (Bank < Budget)

Sometimes budget release order (DTCO) may be less than budget release.

In this condition, amount of budget release will be less than previous month budget.

 

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

PROBLEM: 1C

On 4^th Shrawan 2078, Village Municipality Office, Pyuthan received an order from DTCO for actual expenditures of previous month of Rs 350,000 and treasury order for Rs 425,000.

Required: Journal Voucher

[Answer: Cr imprest fund = Rs 75,000]

SOLUTION:

AGF No. 203

Central/Province/Local Level

Government of Nepal

Village Municipality Office, Pyuthan

Date: 2078–04–04

Office Code No. 123

JV No. 3

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Receipt

Budget Sub-head No.

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

425,000

Cr Initial revolving fund (b/f)

75,000

Cr Budget release

350,000

Total

425,000

425,000

Amount in words: four lakh twenty-five thousand received.

Brief narration of transaction: budget released and revolving fund adjusted.

Attach documents:

For payment purpose

SN

Payment receiver’s name

Bank Account No./Slip No.

Folio No.

Payment Amount

1

2

Total

Prepared by:

ABC

Submitted by:

MNO

Approved by:

XYZ

Date:

2078–04–04

Date:

2078–04–04

Date:

2078–04–04

Designation:

Jr. Accountant

Designation:

Accountant

Designation:

Officer

 

 

 

 

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(3) Amount of budget release order is more than bank (treasury) order (Bank > Budget)

Sometimes budget release order (DTCO) may be more than bank order.

In this condition, amount of budget release will be excess than previous month budget.

 

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

PROBLEM: 1D

Village Municipality Office, Pyuthan received a treasury order of Rs 750,000 from DTCO and budget release order of Rs 825,000 for the expenditure of last month on 5^st Bhadra 2078.

Required: Journal Voucher

 [Answer: Dr Imprest fund = Rs 40,000]

SOLUTION:

AGF No. 203

Central/Province/Local Level

Government of Nepal

Village Municipality Office, Pyuthan

Date: 2078–05–05

Office Code No. 123

JV No. 4

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Receipt

Budget Sub-head No.

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

310,000

Dr Initial revolving fund (b/f)

40,000

Cr Budget release

350,000

Total

350,000

350,000

Amount in words: three lakh ten thousand received.

Brief narration of transaction: budget released and imprest fund adjusted.

Attach documents:

For payment purpose

SN

Payment receiver’s name

Bank Account No./Slip No.

Folio No.

Payment Amount

1

2

Total

Prepared by:

ABC

Submitted by:

MNO

Approved by:

XYZ

Date:

2078–05–05

Date:

2078–05–05

Date:

2078–05–05

Designation:

Jr. Accountant

Designation:

Accountant

Designation:

Officer

 

 

Keep in Mind (KIM)

Other name of imprest fund are revolving fund, additional fund, additional revolving fund, initial fund etc

Sometimes, the government office needs asset (furniture, equipment, vehicle etc) for the office purpose.

The related Ministry can issues additional budget for that asset; in this condition:

Dr BE Asset by name

Cr Budget release

 

 

PROBLEM: 1E

Village Municipality Office, Pyuthan received a payment order from DTCO for Rs 32,550 as additional revolving fund for colour printer for office use on Bhadra 14.

 

SOLUTION:

AGF No. 203

Central/Province/Local Level

Government of Nepal

Village Municipality Office, Pyuthan

Date: 2078–05–14

Office Code No. 123

JV No. 5

Journal Voucher

Electronics Transaction No.

Types of Journal Voucher: Receipt

Budget Sub-head No.

SN

Code

Activities

Particulars

LF

Sources

Debit

Credit

Sub-head

Program

Level

Bearer

Type

Payment

Amount

Amount

No.

Code No.

Orgn

mode

29511

Dr BE Computer Printer

32,560

Cr Budget release

32,560

Total

32,560

32,560

Amount in words: thirty-two thousand five hundred sixty received.

Brief narration of transaction: budget released and revolving fund adjusted.

Attach documents:

 

 

#####

PROBLEMS  AND  ANSWERS  OF  JOURNAL  VOUCHERS  (BUDGET  RELEASE)

 

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

PROBLEM: 1A 

The following extracted information is taken from a local level office District Post Office, Palpa:

78/4/2	Initial revolving fund received 1/6th of Rs 36,00,000 as the last year actual budget expenditure.
78/5/1	Payment order received from DTCO for a budget release order for actual expenditure of last month Rs 300,000.
78/6/3	Payment order received from DTCO for Rs 365,000 including budget release order for the last month of Rs 300,000 and additional revolving fund Rs 65,000.
78/7/4	Payment order received from DTCO for Rs 300,000 for the reimbursement of revolving fund of Rs 65,000 and budget release order of Rs 235,000.
78/5/1	Payment order received from DTCO for a budget release order for actual expenditure of last month Rs 300,000.

Required: Journal Vouchers

  

 

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

PROBLEM: 1B  

The following extracted information is given to you by Tara Health Post of province level office:

78/4/1	Initial revolving fund received Rs 11,00,000 that is 1/6th of Rs 66,00,000 as actual budget of last year.
78/5/2	Payment order received from DTCO for the actual expenditure of Rs 550,000 of the previous month and treasury order only for Rs 375,000
78/6/3	Payment order received from DTCO of Rs 725,000 and budget release order for Rs 550,000 for the expenditure of the last month.
78/6/9	Payment order received from DTCO for Rs 300,000 as additional revolving fund for machinery purchase.

Required: Journal Vouchers

 

 

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