Page 239 - Account 10

d. Budget Transfer
While making expenditures as per the annual appropriation under different heads,
there may exist the possibility of the annual appropriation being inadequate under some
heads and excess under some other heads. In order to avoid such situation, the provisions
are made under the New Accounting System of GON to transfer amount from the heads
having surplus budget to the ones having scarce. But this should be approved from the
Office of the Treasury and Comptroller. Budget may be transferred from one head to
another within the same office or between the offices of Government of Nepal. Thus,
budget transfer refers to the acts of transferring an amount from one budget head to
another or from one government office to another. The accounting treatment of such
budget transfer is illustrated below:

i. For inter-head transfer of budget, within the same office:
Dr. BE (Head, from which budget is transferred)
Cr. BE (Head, to which budget is transferred)

ii. For inter-office transfer of budget:
In the book of the office receiving transfer

Dr. Treasury Single Account (TSA)
Cr. Budget Release

(Being budget transfer received from office)
In the book of the office giving transfer,
Dr. Budget Release
Cr. Treasury Single Account (TSA)

(Being budget transferred from budget expenditure to ............ office)
Illustration - 8
i. On 2075-7-5, Rs. 15,000 was transferred from budget head uniform to budget head
food on the basis of approval received.
Solution - i
Code No. Particulars L.F. B. H. No. Debit Credit
ii. Dr. B.E. Uniform 21121 15,000
Cr. B.E. Food 21122 15,000
(Being budget transferred from T-TADA to
allowance)
15,000 15,000

e. Security Deposit and Contract Tax
Some government transactions are related with public constructions or large quantity
purchase of materials or capital assets. For this, government invites tenders and quotations
from the registered contractors to carry out the constructional work or to supply materials
at a quoted price. The contractors who submit tenders should deposit an amount equal

238 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 239