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information to the respective central level offices, central level offices use some of the
forms for recording their regular transactions and for the preparation of the statements to
be submitted to the Ministry of Finance. Thus, use of different forms for accounting and
reporting is also another notable feature of the New Accounting System of Government.

Points to Remember

i. Based on the principle of double entry ii. Simplicity and uniformity
book-keeping system
iii. History of financial transactions iv. Branch of financial administration
v. Basis for budgeting and its control vi. Keeping accounts under budget heads
vii. Confidentiality/secrecy viii. Changeability
ix. Emphasis on banking transaction x. Provision of central and operating level offices
xi. Use of brackets xii. Enter head transfer of budget
xiii. Use of different forms for accounting and reporting

6. Kinds of Government Accounting
After the implementation of New Accounting System in Nepal, the offices of
Government have been divided into central level and operating level offices in accounting
point of view and the accounting also has been divided accordingly as central level
accounting and operating level accounting.
The ministries, departments and constitutional bodies are called central level offices and
the accounting maintained by these offices is called central level accounting. Similarly,
the lower level or branch offices like regional, district level and other local offices, which
are responsible for the respective central level offices are called operating level offices and
the accounting maintained by these offices is called operating level accounting.

i. Central Level Accounting
The act of accounting performed by the central level offices is known as central
level accounting. It refers to the recording of the release of budget to the operating level
offices in terms of advance, clearing of advance against the monthly report submitted by
each operating level office and summarising the report of the operating level along with
its own. Thus, the budget release is a downward process and the report is an upward
process.
The following are the forms used by central level offices:
a. Goshwara Voucher, AGF No. 10
b. Ledger, AGF No. 22
c. Budget Summary and Expenditure Control A/c, AGF No. 24
d. Other Statements and Reports
ii. Operating Level Accounting
The accounting, which is performed by the operating level office, is known as
operating level accounting. It refers to the recording of the budget releases obtained from
the respective central level offices as advances, recording the transactions in the primary
book of account i.e. Goshwara Voucher, posting them into ledger accounts like Bank Cash

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