Page 263 - Account 10

iv. Salary Deductions
Dr. B.E. Salary
Cr. Personnel Provident Fund
Cr. Personnel Loan
Cr. Social Security Tax
Cr. Income Tax
Cr. Treasury Single Account (TSA)

Posting is made by debiting budget expenditure A/c and crediting miscellaneous A/c
and bank A/c with the corresponding amount.

Dr. Personnel Provident Fund
Dr. Personnel Loan
Dr. Income Tax
Dr. Social Security Tax
Cr. Treasury Single Account (TSA)

Posting is made by debiting miscellaneous A/c and crediting bank A/c.
v. Establishment of Petty Cash Fund,
Dr. Petty Cash Fund
Cr. Treasury Single Account (TSA)

Posting is made by debiting miscellaneous A/c and crediting bank A/c.

Note: The reimbursement of petty cash fund is just like a general transaction and thus
posting is made accordingly as the rule of general journal voucher.

7. Closing of Bank Cash Book
A. Monthly Closing

Since the operating level offices are responsible for the accountability of budget
expenditure, they have to submit monthly reports/statements to their central level
offices at the end of each month. The bank cash book is the principal book of account
of the operating level offices and thus provides the complete information for preparing
reports and statements. Thus, it should be closed at the end of each month by totalling
all the amount columns separately, except the bank balance column. Then a trial balance
is prepared after totalling the bank cash book in order to see the numerical correctness
(accuracy) of the journal and the ledger i.e. bank cash book.
The debit and credit totals of the trial balance should show the equal amount, if not, then
the difference in the trial balance should be equal to the difference between advance given
and cleared if any; otherwise, the books of accounts are not considered accurate.
After being confident for the numerical accuracy of the bank cash book, the totals should
be carried forward to the coming month.

B. Annual/Yearly Closing
The budget duration in the offices of Government of Nepal is for a year, and thus,
it is known as budget year or fiscal year. Thus, as one of the books of account, the bank

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