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to another. On the otherhand, the accounting systems were also not based on the double
entry principle. Nowadays, with the use of New Accounting System, the same style of
accounting is followed throughout the country and the forms and formats are used for the
accounting and reporting of similar type of transactions and thus it is uniform throughout
the country and has become simple to understand and use with a little knowledge of the
principle of accounting.
iii. History of Financial Transactions
New Accounting System of Government of Nepal presents historical information
about the financial transaction of government offices for a series of years in the past.
Under this, all financial transactions are recorded when they occur, and they are later
summarised in the form of reports and statements and they are preserved for future
purposes, systematically and scientifically, which become the historical evidence.
iv. Branch of Financial Administration
It is one of the most important parts of financial administration. All financial activities
become handicapped in the lack of proper accounting system, which causes the failure of
financial administration. New Accounting System presents the data and other financial
information required for the financial administration from time to time and assists in
taking various financial decisions. Besides, it helps to detects and prevent errors and
frauds, which is a must for the financial administration.
v. Basis for Budgeting and its Control
After the declaration of budget system in 2008 B.S., the existing accounting system
could not supply the necessary data, statistics and other financial information for the
preparation and execution of budget. New Accounting System was brought into practice
to fulfil the necessity of budgeting. Thus, this system is the basis for budgeting. It maintains
the records of all the transactions regarding budget approved in different heads, there
is no ground for manipulation of government revenue and expenditure so that, proper
control can be achieved.
vi. Keeping Accounts under Budget Heads
Budget is not only a statement of estimated revenue and expenditure but also a
financial regulation. With the annual appropriation and regular and additional budget for
each head allocated and the expenditure made are set according to the budget prescription
and thus, New Accounting System keeps the records of revenue and expenses under
the given heads in budget. Ledger accounts are also maintained in accordance to the
budgeted heads of revenue and expenditures.
vii. Confidentiality/Secrecy

As there is no provision of getting signatures of the outsiders in the main accounting
documents under New Accounting System as was in Shyaha Shresta Pranali, there is
no risk of leakage of any official information, moreover, there are separate forms, slips,
receipts, etc. for different transactions and only the responsible officials are entrusted
with the responsibility of maintaining accounting records. Thus, it ensures the secrecy of
accounting records.

186 Aakar’s Office Practice and Accountancy - 10 Government Accounting System 187