Book keeping system in public sector

year of accounting 1st of January to 31st December impresets limit should be settled by

expenditure or accounting summaries or cash though private sector use accrual basic ,government sector use cash basic (however advance accounts prepared base on accrued basic) the national accounts are prepared by the treasury while department role is reporting necessary information to treasury to prepare national accounts The following books are prescribed for general use: (i) Cash Book and /or Petty Cash Book; (ii) Departmental Appropriation (Votes) Ledger (Form General 138); (iii) Register of Cheques, Money Orders, etc., received. (Form G.A.M. 83); (iv) Register of Counterfoil Books (Form G.A. - N20) - (See F.R. 341); (v) Audit Query Register; (vi) Inventory Book (Form General 44); (vii) Catalogue of Books; (viii) Register of Consumable Stores; (ix) Personal Emoluments Register/s; (x) W.&.O.P. Register; (xi) P.S.P.F. Register

Department will however keep such other books of account as may be necessary for their particular requirements. The books of account of departments whose methods of accounting are laid down in departmental codes or manuals, duly approved by the Treasury, will be kept in accordance with the Rules prescribed therein.

Rules in department book keeping system

01) Receiving impresets from the treasury

Cash book DRTreasury impresets ACC CRNote Although treasury impresets account should be credited theoritically ,it is should be debited for reporting purpose

02) Department expenditure

Relevant vote leger (expenses acc ) DR Cash book CR

NoteAlthough Relevant vote leger (expenses acc )account should be debited theoritically ,because of Treasury impresets ACC get release same amount it should be creited Treasury impresets ACC03) Revenue income Cash book DRRelevant revenue acc CR

When to record treasuryTreasury impresets ACC DRRelevant revenue acc CR

04) Department deposit other receiving (received third party)

Cash book DRGeneral deposit acc CR

When to record treasuryTreasury impresets ACC DRGeneral deposit acc CR

05) Giving sub impresets (other than public officer advance account)Since sub impresets given from main impresets, it is treated as department internal records so it should not want to report to the treasury06) Public officer advance account

Public officer advance acc DRCash book CR

Reporting to treasury

Public officer advance acc DRGeneral deposit acc CR

The department has to report to the treasury end of each month. for this purpose they use the format of monthly account summary the monthly account summary format as followsABC department account summary for the month of Sub no Description Debit Credit

01

02

03

04

05

06

07

08

Expenditure account (vote account)

Refund from the revenue

Revenue account

Surcharge account

Public officer advance acc

Treasury authorized advance a/c

General deposit a/c

Treasury impresets a/cxxxx

xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxx

Xxxxxxxxxx

Example 01

Following information are relevant to department of register generals for the month of January 2013

Impresets receiving from the treasury RS 10 MnRecurrent expenditure of the month RS 3Mn Capital expenditure of the month Rs 4MnPayment under public officer advance account 01Mn

Following revenue and cash inflows are received in January disposal of fixed assets RS 1.5Mn receiving deposit Rs 0.5Mn

You are required to prepareCash book of the departmentAccount summary for the month of January 2013

Example 02

Following information are relevant to department of agriculture for the month of January 2013

01) impresets receiving from the treasury RS 10 Mn02) department of register general had paid this department RS 0.2Mn for carried out their work03) following expenditure relevant to month of JanuarySalaries and wages 80MnStationaries 10MnOver time payments5MnTravelling claims1.5MnInstallation of computer network 06MnConstruction of buildings 30Mn Purchasing of motor vehicle40MnOffice tools05MnPayment under public officer advance account 20Mn

04) following sub impresets are issued during the month

PersonPurposeAmount (Rs)

Aad hoc20,000

BStores200,000

CPetty cash7,500

DForeign traveling500,000

05) summaries of salaries and wages as followsBasic salaries 68MnCost of living allowance 10MnOther allowance02Mn Gross salary80MnDeductionsW. & O.P1.2MnPublic officer advance7.8MnPublic officer advance interest 1.5MnHousing rents0.5MnTotal deduction 11MnNet salary69MnSummary of the cheque paymentsShorff of the department 64Mn Peoples bank02MnBank of Ceylon02MnNational saving bank01Mn 69Mn

06) during the month following revenue and cash inflows were earned by the department

disposal of fixed assets 1.8Mn sales of old materials1.2Mn receiving deposit3 Mn

07) during the month sub impresets were settled as follows Mr. AMr. D

By cash 2,0006,000By bills18,000494,00020,000500,000

You are required to prepare01) record above transaction in the department cash book02) prepare monthly summary of January 201303) treasury authorized impresets account

Calculating treasury impresets debit balance in monthly summarythis is consist all receiving and cash revenue collected by the department but not send to the treasury up to now. It calculate as follows

Total receiving (total debit amount of cash book)xxxx(-) impresets received from the treasury (xxxx)(-) debit cross entries(xxxx)(-) settlement amount of sub impresets(xxxx)xxxx

Calculating treasury impresets credit balance in monthly summary

Total receiving (total debit amount of cash book)xxxx(-) closing balance of cash book (xxxx)Total paymentsxxxx(-) credit cross entries(xxxx)(-) amount of issued sub impresets(xxxx)xxxx(+) cross entries for settled sub impresets xxxx xxxxx

example 01

registrar generals department cash book January 2013DateDescription Cash Cross entries TotalDateDescription Cash Cross entries Total

treasury impresets accountGeneral deposit account

public officer advance accountRevenue account

vote (expenses) account

registrar generals department account summary for the month of january 2013Sub no Description Debit Credit

01

02

03

04

05

06

07

08

Expenditure account (vote account)

Refund from the revenue

Revenue account

Surcharge account

Public officer advance acc

Treasury authorized advance a/c

General deposit a/c

Treasury impresets a/c

example 02

department of agriculture cash book January 2013DateDescription Cash Cross entries TotalDateDescription Cash Cross entries Total

ImpressedG/O(Agriculture)W&op advance

W & OP advance5002

-50022office congumabl20-20

treasury impresets accountgeneral deposit account

public officer advance accountCash 40Salaries 10

Revenue accountW&OP2

Intrest3

Honce3

Rent3

Disposal F/A8

OLd Matirials5

21

vote (expence) accountSalaries200

Office Conshbls20

O.T6

Travling3.5

Off- Equipment5

Moter Vehicle30

Off- tools4

Off-Tools4

A0.014

D0.48

Mr.A

Cash 0.02Bills 0.014

Cash 0.006

Mr B

Cash 0.2

Mr.C

Cash 0.0075

Mr.D

Cash 0.5Bills 0.48

Cash 0.02

department of agriculture account summary for the month of january 2013Sub no Description Debit Credit

01

02

03

04

05

06

07

08

Expenditure account (vote account)

Refund from the revenue

Revenue account

Surcharge account

Public officer advance acc

Treasury authorized advance a/c

General deposit a/c

Treasury impresets a/c268.999

-

-

40

-

18

-

21

-

10

-

5

290.994

376.999326.994

Calculating treasury impresets debit balance in monthly summary

Total receiving (total debit amount of cash book)536.52 (-) impresets received from the treasury (500) (-) debit cross entries(18.49)(-) settlement amount of sub impresets by cash(0.026)18

Calculating treasury impresets credit balance in monthly summary

Total receiving (total debit amount of cash book)536.52(-) closing balance of cash book (226.7985)Total payments309.7215(-) credit cross entries(18.494)(-) amount of issued sub impresets(0.7275) (+) cross entries for settled sub impresets 0.494290.991

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