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viii. Changeability
New Accountancy System is changeable as accordance to the time and situation. As
no single system can remain static forever, the `Account Committee 2017’ has mentioned
that this system of accounting can also be changed or amended as per the time and
situation or as the need of the government for making it more advanced and scientific.
ix. Emphasis on Banking Transactions
It has emphasized upon the performance of government transactions through bank.
Cash is manipulative and misusable and thus, in order to have proper control over the
fund, the New Accounting System has given emphasis on banking transaction. According
to this, every government office should deposit all receipts and collections into bank, i.e.
Nepal Rastra Bank and make payments through cheques except for petty expenses made
out of petty cash fund.

x. Provision of Central and Operating Level Offices
For accounting purposes, government offices are divided into operating level and
central level offices. Operating level offices maintain the records of the advance budget
releases, their expenditures and forwards the monthly reports to the respective central
level offices. Similarly, the central level offices maintain their own accounting and the
summary of the reports and statements are obtained from their operating level offices.
There is no interference from the central level offices in account keeping but the operating
level offices should be always responsible for their respective central level offices.
xi. Use of Brackets
Use of brackets is another important characteristic of the New Accounting System.
The mentioning of amount in the brackets indicates the deduction from the amount
mentioned openly. Brackets are used in maintaining ledger accounts and only in case of
clearance of advance and closing of the books to denote the opposite entry of the amount
or deduction.
xii. Inter-head Transfer of Budget
Out of the budget allocated to a number of heads of an office, sometimes there
may be surplus budget under some heads and scarce under some other heads. In such a
situation, the amount, which is surplus under a head can be transferred to the one having
scarce according to the budget limitation and financial rules under the New Accounting
System. There was not such a provision in the other accounting systems. Such a provision
is known as inter-head transfer of budget. Thus, it is also a notable feature of this system.

xiii. Use of Different Forms for Accounting and Reporting
Under the New Accounting System, there is a provision of different forms for the
accounting and reporting of different types of transactions to ensure the uniformity of
records. Journal Voucher, AGF No. 10, for the original record of the transactions; Bank
Cash Book, AGF No. 5, for the general ledger of the transactions: Budget Sheet, AGF
No.8, for budget expenditure, Statement of Expenditure AGF No. 13, for the details about
the position of expenditure and fund etc. and other a number of forms for accounting
and reporting are used under the New Accounting System. Operating level offices use
some of the forms for recording the regular transactions and to furnish the necessary

188 Aakar’s Office Practice and Accountancy - 10 Government Accounting System 189