Page 262 - Account 10

The entry is:
Dr. B.E. Travelling Expenses 22612 2,600
Dr. Cash/Treasury Single Account (TSA) 400
Cr. S.O. Mr Ramesh clearance of advance for travelling expenses 3,000

v. The common or combined formula of advance clearance is:
Advance B.E. (budget expenses)
Dr. B.E ............... budget heading
Dr./Cr. Treasury Single Account (TSA)
Cr. Advance cleared by for .......... (budget head)
(Being advance cleared)

Thus, the posting is made, once in the debit of expenditure A/c, Rs. 2,600 openly; then in
credit of budget expenditure A/c (inside bracket) Rs. 3,000 to cancel the earlier mentioned
expenditure of Rs. 3000; in the clearance column of advance expenditure A/c, Rs. 3,000
and in debit column of bank A/c Rs. 400. But it should be remembered that if the cash
return of Rs. 400 is mentioned in debit column of cash A/c instead of debiting it directly,
in debit of bank A/c that should be debited in bank A/c by crediting the cash A/c,
assuming that cash of Rs. 400 is immediately banked.
C. Miscellaneous Journal Voucher
Miscellaneous journal voucher refers to:
i. Budget Release, ii. Deductions from Salary,
iii. Petty Cash Fund, iv. Loan and Budget Transfer, etc.
These are posted in debit or credit side of miscellaneous A/c by debiting or crediting the
cash and/or bank A/c. For example:
i. Budget Release, received by cash
Dr. Cash
Cr. Budget Release

Posting is made, by debiting cash A/c and crediting miscellaneous A/c.
Dr. Treasury Single Account (TSA)
Cr. Cash
(Being deposited into bank)

Again then, bank A/c is debited and cash A/c is credited, for depositing the cash into bank.
ii. Budget Release received into bank.

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

Posting is made by debiting bank A/c and crediting miscellaneous A/c.
iii. Common case
Dr. Treasury Single Account (TSA)
Dr. /Cr. Revolving Fund
Cr. Budget Release
And when, budget release bank order

262 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 263