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Statement of Expenditures | Problem and Solution | Tricky Problem

Arjun EP

Published on: July 20, 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: 2A

An Operating Level Office (code 036) has following extracted information:

BH No.	Budget Head	Annual Budget	Expenses upto Magh	Expenses upto Falgun
21111	Salary	240,000	130,000	150,000
22112	Telephone and internet	30,000	12,500	17,500
22311	Office materials	60,000	25,000	35,000
26311	Operational grant	180,000	90,000	120,000
22521	Productive materials	120,000	50,000	75,000

Additional information:

Uncleared office materials is Rs 5,250

Required: Statement of expenditures

[Answer: Balance of budget = Rs 232,500

Viz 90,000; 12,500; 25,000; 60,000; 45,000

In % = 63.1%, 48.81%, 14.29%, 63.1%, 0.83%, 62.26%, 36.9%

SOLUTION:

Explain:

In the question, expenses upto Magh (last month) and upto Falgun (current month) are given.

We should find-out expenses of Falgun (current month) and balance of budget.

Here hint

7	= 5+6
7 – 5	= 6
150,000 – 130,000	= 20,000
17,500 – 12,500	= 5,000
35,000 – 25,000	= 10,000
120,000 – 90,000	= 30,000
75,000 – 50,000	= 25,000

AGF No. 210

Central/Province/Local Level

Operating Level Office

Office Code No. 019

Statement of Expenditures

For the month of Falgun

BH No.	Expenditure or Financial code/name		Annual Budget	Release Upto CM	Expenditure Upto LM	Expenditure of CM	Expenditure upto CM	Uncleared Advance	Net of Uncleared		Balance of Budget
				(Falgun)	(Magh)	(Falgun)	(Falgun)		Advance
1	2		3	4 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Salary		240,000	150,000	130,000	20,000	150,000		150,000		90,000
22112	Telephone and internet		30,000	17,500	12,500	5,000	17,500		17,500		12,500
22311	Office materials		60,000	35,000	25,000	10,000	35,000	5,250	29,750		25,000
26311	Operational grant		180,000	120,000	90,000	30,000	120,000		120,000		60,000
22521	Productive materials		120,000	75,000	50,000	25,000	75,000		75,000		45,000
Grand total			630,000	397,500	307,500	90,000	397,500	5,250	392,250		232,500
Comparison with annual budget in %				63.1%	48.81%	14.29%	63.1%	0.83%	62.26%		36.9%


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

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

PROBLEM: 2B

Following transactions are provided:

Expenses of Marg	Budget Head	Annual Budget	Expenses upto Marg
56,250	Employees’ remuneration	675,000	281,250
12,500	Dearness allowance	150,000	62,500
3,750	Local allowance	45,000	18,750
2,500	Uniform	90,000	37,500
1,250	Office Supplies	15,000	6,250
25,000	Equipment	300,000	125,000

Additional information:

Uncleared advance of local allowance was Rs 2,000.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 743,750

Viz 193,750; 87,500; 26,250; 52,500; 8,750; 175,000

In % = 41.67%, 33.73%, 7.94%, 41.67%, 0.16%, 41.51%, 58.33%

SOLUTION:

Explain:

In the question, expenses upto Marg/Mansir (current month) and expenses of Marg (current month) are given.

We should find-out expenses upto Kartik (last month), net of uncleared advance and balance of budget.

Here hint

7	=	5+6
7 – 6	=	5
281,250 – 56,250	=	225,000
62,500 –12,500	=	50,000
18,750 – 3,750	=	15,000
37,500 – 2,500	=	35,000
6,250 – 1,250	=	5,000
125,000 – 25,000	=	100,000

AGF No. 210

Central/Province/Local Level

Operating Level Office

Office Code No. 019

Statement of Expenditures

For the month of Marg

BH No.	Expenditure or Financial code/name		Annual Budget	Release Upto CM	Expenditure Upto LM	Expenditure of CM	Expenditure upto CM	Uncleared Advance	Net of Uncleared		Balance of Budget
				Marg	Kartik	Marg	Marg		Advance
1	2		3	4 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Employees’ remun.		6,75,000	281,250	225,000	56,250	281,250		281,250		393,750
21113	Dearness allowances		1,50,000	62,500	50,000	12,500	62,500		62,500		87,500
22312	Local allowance		45,000	18,750	15,000	3,750	18,750	2,000	16,750		26,250
21121	Uniform		90,000	37,500	35,000	2,500	37,500		37,500		52,500
22311	Office materials		15,000	6,250	5,000	1,250	6,250		6,250		8,750
29511	Equipment		3,00,000	125,000	100,000	25,000	125,000		125,000		175,000
Grand total			12,75,000	531,250	430,000	101,250	531,250	2,000	529,250		743,750
Comparison with annual budget in %				41.67%	33.73%	7.94%	41.67%	0.16%	41.51%		58.33%


Signature of Preparer:						Signature of Approver:
Name:		ABC				Name:				XYZ
Position:		Accountant				Position:				Office-in-charge
Date:		2077-8-30				Date:				2077-8-30

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

PROBLEM: 2C

The following information is given by Operating Level Office (code 56):

Budget Head	BH No.	Annual Budget	Expenses upto Ashwin (LM)	Balance of Budget
Salary	21111	300,000	75,000	200,000
Other allowance	21119	30,000	10,000	10,000
Food materials	21122	40,000	10,000	27,000
Dress materials	21121	35,000	8,500	24,000
Office materials	22311	50,000	15,000	30,000

Additional information:

(a) Advance column of bank cash shows in debit Rs 6,000 and Rs 2,000 in credit of office materials.

Required: Statement of expenditure showing annual budget in percentage for the month of Kartik

[Answer: Balance of budget = Rs 291,000

Viz 200,000; 10,000; 27,000; 24,000; 30,000

In % = 36.04%, 26.04%, 10%, 36.04%, 0.88%, 35.16%, 63.96%

SOLUTION

Given and working note:

In the question, expenses upto Ashwin (last month) and balance of budget are given.

We should find-out expenses of Kartik (current month), expenses upto Kartik and net of uncleared advance.

Here hint			Again,
10	=	3–7	7	=	5+6
3–10	=	7	7 – 5	=	6
300,000 – 200,000	=	100,000	100,000 – 75,000	=	25,000
30,000 – 10,000	=	20,000	20,000 – 10,000	=	10,000
40,000 – 27,000	=	13,000	13,000 – 10,000	=	3,000
35,000 – 24,000	=	11,000	11,000 – 8,500	=	2,500
50,000 – 30,000	=	20,000	20,000 – 15,000	=	5,000

AGF No. 210

Central/Province/Local Level

Operating Level Office

Office Code No. 56

Statement of Expenditures

For the month of Marg

BH No.	Expenditure or Financial code/name		Annual Budget	Release Upto CM	Expenditure Upto LM	Expenditure of CM	Expenditure upto CM	Uncleared Advance	Net of Uncleared		Balance of Budget
				Kartik	Ashwin	Kartik	Kartik		Advance
1	2		3	4 = 7	5	6	7 = 5+6	8	9 = 7–8		10 = 3–7
21111	Salary		300,000	100,000	75,000	25,000	100,000		200,000		200,000
21119	Other allowance		30,000	20,000	10,000	10,000	20,000		10,000		10,000
21122	Food materials		40,000	13,000	10,000	3,000	13,000		27,000		27,000
21121	Dress materials		35,000	11,000	8,500	2,500	11,000		24,000		24,000
22311	Office materials		50,000	20,000	15,000	5,000	20,000	4,000	16,000		30,000
Grand total			455,000	164,000	118,500	45,500	164,000	4,000	160,000		291,000
Comparison with annual budget in %				36.04%	26.04%	10%	36.04%	0.88%	35.16%		63.96%


Signature of Preparer:						Signature of Approver:
Name:		ABC				Name:				XYZ
Position:		Accountant				Position:				Office-in-charge
Date:		2077-7-30				Date:				2077-7-30

#####

PROBLEMS AND ANSWERS OF STATEMENT OF EXPENDITURES

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

PROBLEM: 2A

The following extracted transactions are given by Province Level Office (code 046; amount in hundred):

Budget head	BH No.	Annual Budget	Expenditure upto Ashwin	Expenditure upto Bhadra
Salary of staff	21111	170,000	43,000	26,400
Field allowance	21114	36,000	12,000	6,000
Food materials	21122	25,000	10,000	7,000
Office materials	22311	30,000	10,000	10,000
Machinery	29511	80,000	55,000	25,000

Additional information:

Bank cash book showed in advance column of the salary as debit Rs 15,000 and credit Rs 9,225 in current year.

Required: Statement of expenditure

[Answer: Balance of budget = Rs 211,000

Viz 127,000; 24,000; 15,000; 20,000; 25,000

In % = 38.12%, 21.82%, 16.30%, 38.12%, 1.69%, 36.43%, 61.88%

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

PROBLEM: 2B

The following information is given by Rural Municipality Office:

Budget head	BH No.	Annual Budget	Expenditures of Poush	Budget balance
Salary	21111	900,000	75,000	225,000
Dearness allowance	21113	144,000	12,000	36,000
Electricity and water	22111	45,000	3,000	27,000
Office materials	22311	180,000	36,000	75,000
Furniture	29311	216,000	30,000	90,000