Page 281 - Account 10

6. Closing of Budget Sheet
Each operating level office is responsible towards the central level office for incurring
the expenditure of the budget release it receives in terms of advance. So, each operating
level office presents the report and statements to the central level office at the end of each
month for clearing advance budget. For this, all the books of accounts are closed at the
end of each month. Finally, it should be closed at the end of each fiscal year.
i. Monthly closing

While making the monthly closing of budget sheet, the total amount of budget release
and the total amount of expenditure under each budget head and sub-head is determined
in each month. The amount of budget release up to the current month is fixed by totalling
the sum of the release of the present month with that of the sum of the release up to the
last of the previous month. Similarly, while closing the expenditure part at the end of each
month, amounts in each column are totalled, then the totals of each column up to the last
of the previous month are mentioned just below the totals of the current month and both
the totals are added together to find out the total on each head till the last of the current
month. In this way, this process is continued up to the last month of each fiscal year i.e.
till the last of Ashadh beginning from the month of Shrawan of the year.

ii. Annual closing
Budget Sheet is necessary to be closed at the end of each fiscal year in order to find
out position of budget after deducting the total annual expenditure from the total of the
budget releases during each fiscal year on each and every budget head. The total amounts
of each column under budget release and budget expenditure are put in brackets so as to
neutralise the release and expenditure.
At the bottom of the budget sheet, the surplus of budget on each head is calculated
by deducting the total of expenditures from that of the release. The surplus is either
transferred to the coming year or frozen or deposited into the Consolidated Fund by
making the closing vouchers.

7. Illustrative Problems and Solutions

Illustration - 1
Prepare Budget Sheet, AGF No. 8, for the month of Shrawan, 2075 for the following
transactions of the District Administration Office, Palpa.
5, Notice of bank order against preliminary revolving fund release equal to 1/6 of
th
the last year’s budget expenditure of 24,00,000 was received from the Office of the
Treasury and Comptroller as annual appropriation bill is still under consideration.
8, Issued a cheque of Rs. 500 for the creation of Petty Cash Fund under the responsibility
of Mr. Dhanapati, the Petty Cashier of the office to facilitate petty payments.
12, Paid Rs. 5,000 to Progressive Book and Stationery against the purchase of stationery
items like files, papers, pen and ink etc, for office use.
17, TA/DA advance of Rs. 5,000 was given to Section Officer, Ramji Sharma for an
official tour to Nepalgunj.

280 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 281