Page 220 - Account 10

returned. Thus, transactions related with advance expenditures are recorded twice under
the New Accounting System, first at the time when advance is given and another at the
time of clearance.

a. When Advance is Given:
When an advance is given to any person or party, his/her name, post and other
relation along with the purpose is debited and the bank i.e. Treasury Single Account
(TSA) is credited as:
Dr. Post and Name advance for budget head
Cr. Treasury Single Account (TSA)
The following illustrations will clear the concept about advance expenditures and their
journal vouchers.
Illustration - 2
i. District Administration Office, Kaski, paid Rs. 20,000 by cheque no. 0010 to Section
Officer Mr. Hari Sharma as an advance for transfer daily and travelling allowance on
2075-8-3.
ii. On 2075-8-5, issued a cheque no. 0012 of Rs. 15,000 to Store Keeper Mrs. Jyoti Singh
as advance for purchasing furniture of Rs. 10,000 and bicycle of Rs. 5,000.
iii. L/C (Letter of credit) is issued by cheque no. 0015 in advance to Honda Co. Japan for
Rs. 1,50,000 for the purchase of a XL Honda Motorcycle on 2075-8-15.
iv. Rs. 15,000 is given in advance to Section Officer Mr. Ram Prasad Tiwari through a
cheque no. 0017 for his 5 days official tour to Kathmandu on 2075-8-17.
v. On 2075-8-20, Accountant Ramhari Sharma was given as an advance of Rs. 24,000 by
a cheque no. 0018 in total for buying a typewriter of Rs. 6,000, office uniform of Rs.
3,500 and office furniture of Rs. 14,500. .

Solution - i
Government of Nepal AGF No.10.
District Administration Office, Kaski JV No:
Journal Voucher Date: 2075-8-3
Code No. Particulars L.F. B.H. No. Debit Rs. Credit Rs.
Dr. Advance given to S.O. Mr. Hari
Sharma for Travelling Expenses 22612 20,000
Cr. Treasury Single Account (TSA) 20,000
(Being advance for TADA given to
the Section Officer Mr. Hari Sharma)
20,000 20,000
Receipt No: ................ Cheque No: 0010.
Amount Received: ................ Cheque Amount : Rs. Twenty Thousand Only.
................................................ ...............................
Submitted By: Mr. X. Approved By: Mrs. Y
Position: Accountant Position: Chief
Date: 2075-8-3 Date: 2075-8-3

220 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 221