Home / NOTES

2821 Views

Estimated reading time : 204 Minutes

Statement of Expenditures | Problem and Solution | AGF 210

Arjun EP

Published on: July 18, 2021

Tips for Statement of Expenditures

While preparing this statement, you should:

Find out current month and last month,

Upto means cumulative,

Expenditures upto last month = total of month 1 + month 2 and so on,

Expenditures upto current month = total upto last month + expenditure of current month

Column 1: Write here budget sub heading number

Column 2: Write here the name of budget expenditures

Column 3: Write here amount of annual budget

Column 4: Write here cumulative budget released amount of related budget sub-heading

Column 5: Write here expenditures upto last (previous) month

Column 6: Write here expenditures of current month

Column 7: Write here expenditures upto current month (current month + upto last month) viz 5+6

Column 8: Write here uncleared advance of related budget expenditures

Column 9: Write here net amount after deducting uncleared advance viz 7–8

Column 10: Write here balance of budget viz 3–7

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

PROBLEM: 1A

District Health Post has following extracted information:

BH No.	Budget Head	Annual Budget	Expenses upto Falgun	Expenses of Chaitra
21111	Salary	320,000	250,000	30,000
21113	Dearness allowance	30,000	12,500	17,500
22311	Office materials	70,000	25,000	30,000
22531	Medicines	190,000	100,000	50,000
29511	Equipment	110,000	80,000	10,000

Required: Statement of expenditures

[Answer: Balance of budget = Rs 115,000;

Viz 40,000, Nil, 15,000, 40,000, 20,000)

% = 84.03%, 77.27%, 19.1%, 84.03%, Nil, 84.03%, 15.97%

SOLUTION:

AGF No. 210

Central/Province/Local Level

District Health Post

Office Code No. 182

Statement of Expenditures

For the month of Chaitra

BH	Expenditure or		Annual	Release	Expenditure	Expenditure	Expenditure	Uncleared	Net of		Balance of
No.	Financial code/name		Budget	Upto CM	Upto LM	of CM	upto CM	Advance	Uncleared		Budget
				(Falgun)	(Falgun)	(Chaitra)	(Chaitra)		Advance
1	2		3	4 = 5+6 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Salary		320,000	280,000	250,000	30,000	280,000		280,000		40,000
21113	Dearness allowance		30,000	30,000	12,500	17,500	30,000		30,000		−
22311	Office materials		70,000	55,000	25,000	30,000	55,000		55,000		15,000
22531	Medicines		190,000	150,000	100,000	50,000	150,000		150,000		40,000
29511	Equipment		110,000	90,000	80,000	10,000	90,000		90,000		20,000
Grand total			720,000	605,000	467,500	137,500	605,000		605,000		115,000
Comparison with annual budget in %				84.03%	77.27%	19.1%	84.03%	Nil	84.03%		15.97%


Signature of Preparer:						Signature of Approver:
Name:		ABC				Name:				XYZ
Position:		Accountant				Position:				Office-in-charge
Date:		2077-12-30				Date:				2077-12-30

Given and working note:

% = (Grand total ÷ Total budget) x 100

4	5	6	7
= 605,000 ÷ 720,000	= 467,500 ÷ 605,000	= 137,500 ÷ 720,000	= 605,000 ÷ 720,000
= 0.8403 or 84.03%	= 0.7727 or 77.27%	= 0.191 or 19.1%	= 0.8403 or 84.03%

8	9	10
=	= 605,000 ÷ 720,000	= 115,000 ÷ 720,000
	= 0.8403 or 84.03%	= 0.1597 or 15.97%

###########

Click on the link for YouTube videos:
Accounting Equation	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance & Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Final Accounts: Class 11	http://tiny.cc/y89jkz
Adjustment in Final Accounts	http://tiny.cc/keakkz
Capital and Revenue	http://tiny.cc/peakkz
Single Entry System	http://tiny.cc/n19jkz
Non-Trading Concern	http://tiny.cc/j09jkz
Government Accounting	http://tiny.cc/hcakkz
Goswara Voucher (Journal Voucher)	http://tiny.cc/hcakkz

###########

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

PROBLEM: 1B

Following information is given by Local Level Office:

BE No.	Budget Head	Annual Appropriation	Expenditures	Expenditures
		Budget	upto Shrawan	of Bhadra
21111	Salary	250,000	36,000	12,000
21112	Local allowance	25,000	4,000	2,000
21122	Food materials	15,000	3,000	2,500
28121	House rent	24,000	6,000	2,000
22311	Office materials	20,000	5,000	3,000
22211	Fuel for office	15,500	4,000	1,000

Additional information:

a. Unclear advance of local allowance Rs 2,500.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 269,000

Viz 202,000; 19,000; 9,500; 16,000; 12,000; 10,500;

% = 23.03%, 16.60%, 6.44%, 23.03%, 0.715%, 22.32%, 76.97%

SOLUTION

AGF No. 210

Central/Province/Local Level

Local Level Office

Office Code No. 025

Statement of Expenditures

For the month of Bhadra

BH	Expenditure or		Annual	Release	Expenditure	Expenditure	Expenditure	Uncleared	Net of		Balance of
No.	Financial code/name		Budget	Upto CM	Upto LM	of CM	upto CM	Advance	Uncleared		Budget
				(Bhadra)	(Shrawan)	(Bhadra)	(Bhadra)		Advance
1	2		3	4 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Salary		250,000	48,000	36,000	12,000	48,000		48,000		202,000
21112	Local allowance		25,000	6,000	4,000	2,000	6,000	2,500	3,500		19,000
21122	Food materials		15,000	5,500	3,000	2,500	5,500		5,500		9,500
28121	House rent		24,000	8,000	6,000	2,000	8,000		8,000		16,000
22311	Office materials		20,000	8,000	5,000	3,000	8,000		8,000		12,000
22211	Fuel for office		15,500	5,000	4,000	1,000	5,000		5,000		10,500
Grand total			349,500	80,500	58,000	22,500	80,500	2,500	78,000		269,000
Comparison with annual budget in %				23.03%	16.60%	6.44%	23.03%	0.715%	22.32%		76.97%


Signature of Preparer:						Signature of Approver:
Name:		ABC				Name:				XYZ
Position:		Accountant				Position:				Office-in-charge
Date:		2077-5-30				Date:				2077-5-30

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

PROBLEM: 1C

Following information is given by District irrigation Office, Office code is 015:

BE No.	Budget Head	Annual Appropriation	Expenditures	Expenditures
		Budget	upto Poush	Magh
21111	Employees salary	650,000	350,000	54,000
22121	Office rent	150,000	75,000	12,500
21311	Office expenses	75,000	25,000	5,000
29311	Furniture	125,000	72,500	7,250
29411	Vehicle	200,000	–	190,000
29211	Construction irrigation	275,000	190,000	55,500
29511	Equipment	25,000	10,000	–

Additional information:

Unclear advance of furniture had shown Rs 9,000 in debit and Rs 4,000 in credit.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 453,250

Viz 246,000; 62,500; 45,000; 45,250; 10,000; 29,500; 15,000

In % = 69.78%, 48.17%, 21.62%, 69.78%, 0.33%, 69.45%, 30.22%

SOLUTION

AGF No. 210

Central/Province/Local Level

District irrigation Office

Office Code No. 015

Statement of Expenditures

For the month of Magh

BH No.	Expenditure or Financial code/name		Annual Budget	Release Upto CM (Magh)	Expenditure Upto LM (Poush)	Expenditure of CM (Magh)	Expenditure upto CM (Magh)	Uncleared Advance	Net of Uncleared Advance		Balance of Budget
1	2		3	4 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Employees salary		650,000	404,000	350,000	54,000	404,000		404,000		246,000
22121	Office rent		150,000	87,500	75,000	12,500	87,500		87,500		62,500
21311	Office expenses		75,000	30,000	25,000	5,000	30,000		30,000		45,000
29311	Furniture		125,000	79,750	72,500	7,250	79,750	5,000	74,750		45,250
29411	Vehicle		200,000	190,000	–	190,000	190,000		190,000		10,000
29211	Construction		275,000	245,500	190,000	55,500	245,500		245,500		29,500
29511	Equipment		25,000	10,000	10,000	–	10,000		10,000		15,000
Grand total			15,00,000	10,46,750	7,22,500	3,24,250	10,46,750	5,000	10,41,750		4,53,250
Comparison with annual budget in %				69.78%	48.17%	21.62%	69.78%	0.33%	69.45%		30.22%


Signature of Preparer:						Signature of Approver:
Name:		ABC				Name:				XYZ
Position:		Accountant				Position:				Office-in-charge
Date:		2077-10-30				Date:				2077-10-30

#####

PROBLEMS AND ANSWERS OF STATEMENT OF EXPENDITURES

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

PROBLEM: 1A

Following information is related to District Health Post:

Budget Head	BH	Annual	Expenditures	Expenditures
	No.	Appropriation Budget	upto Bhadra	of Ashwin
Salary	21111	500,000	96,000	48,000
Local allowance	21112	55,000	9,000	5,000
Dearness allowance	22313	25,000	4,000	4,500
House rent	28121	48,000	8,000	4,000
Purchase of medicine	22531	55,500	20,000	5,000
Furniture	29311	50,000	20,500	4,500

Additional information:

(i) Unclear advance of house rent Rs 4,000.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 505,000

Viz 356,000; 41,000; 16,500; 36,000; 30,500; 25,000

In % = 31.15%, 21.47%, 9.68%, 21.47%, 0.545%, 30.61%, 68.85%

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

PROBLEM: 1B

Following information is related to District Survey Office:

Budget Head	BH	Annual	Expenditures	Expenditures
	No.	Appropriation Budget	upto Bhadra	of Ashwin
Salary	21111	700,000	100,000	50,000
Field allowance	21114	250,000	25,000	10,000
Food materials	21122	150,000	10,000	5,000
Dress materials	21121	20,000	6,000	6,500
Office materials	22311	30,000	5,000	–

Additional information:

(i) Unclear advance of office materials was Rs 5,000.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 932,500

Viz 550,000; 215,000; 135,000; 7,500; 25,000;

In % = 19%, 12.70%, 6.57%, 19%, 0.43%, 18.57%, 81.09%

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

PROBLEM: 1C

Following information is related to Local Level Office (code 141):

Budget Head	BH	Annual	Expenditures	Expenditures
	No.	Appropriation Budget	upto Bhadra	of Ashwin
Remuneration	21111	7,20,000	120,000	60,000
Field allowance	21114	2,50,000	25,000	40,000
Medical treatment	21122	1,50,000	10,000	5,000
Communication	21121	20,000	6,000	1,500
Office materials	22311	30,000	5,000	–
Equipment	29511	4,22,500	50,000	72,400