Page 228 - Account 10

d. When the amount of initial revolving fund is to be returned
When the amount of preliminary revolving fund is to be returned, being in excess,
after the approval of the current year’s appropriation,
Dr. Revolving Fund Release
Cr. Treasury Single Account (TSA)
(Being the excess revolving fund returned.)

The office was allocated Rs. 18,00,000 as the budget for the current year, on 075-4-10, and
the initial revolving fund Rs. 1,00,000 was returned by cheque No.0098 to the Office of the
Treasury and Comptroller.
Solution:
Code No. Particulars L.F. B. H. No. Debit Credit
Dr. Initial Revolving Fund 1,00,000
Cr. Treasury Single Account (TSA) 1,00,000
(Being additional revolving fund release
returned.)
1,00,000 1,00,000
ii. Budget Release and Revolving Fund
Every month, an office gets budget release for the month, equal to the expenses made
by it in the last month. It should be noted, however, that an office must spend, at least,
50% of the amount of the Revolving Fund (Imprest Fund) in each month, otherwise it
doesn’t get the reimbursement for the expenses of such month. But the office gets release
order for the amount equal to the expenses so incurred, it is to be adjusted from the
Revolving Fund.

a. When the amounts of budget release order and bank order are equal
Every month an office gets budget release for the month equal the expenses made by
it in the last month. The entry is:
Dr. Treasury Single Account (TSA)
Cr. Budget Release
(Being budget release and bank order received)

On 2075-5-3 received Rs. 3,00,000 as a budget release order for the reimbursement of the
month of Shrawan from the Office of the Treasury and Comptroller through bank transfer.

Solution:

Code No. Particulars L.F. B. H. No. Debit Credit
Dr. Treasury Single Account (TSA) 3,00,000
Cr. Budget Release 3,00,000
(Being reimbursement of revolving fund
expenditure through bank transfer received)
3,00,000 3,00,000

228 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 229