Page 299 - Account 10

viii. Loan payable: Amount taken from other office is known as loan payable. It can be
calculated as:
Loan payable
= Total expenses upto current month – total release received + cash balance +
bank balance + loan/deposit provided

ix. Loan receivables is calculated as:
Loan receivable
= Total release – total expenditures – bank balance – cash balance + loan taken

x. Submitted by: The name and signature of the person submitting if for final approval
along with date is given.
xi. Approved by: The name and signature of ther person accepting and approved as
final approval along with date is given.
xii. The common rule is

TR = TE + BB + CB or PF + L.P + A/c P + A/c R - L.R
Where,
T.R. = Total Revolving fond L.P. = Loan provided
B.B = Bank Balance A/c R. = Account receivable
C.B. = Cash Balance L.A. = Loan Receivable
P.F. = Petty Cash Fund A/c P = Account payable

Generally, bank balance, cash balance and budget expenditure amount should be equal
to the budget release. In the event of any difference, the difference will be equal to the
advance or loan given but not yet cleared or received.
Illustration - I
Based on the following information regarding the budget and expenditure, prepare the
Statement of Expenditure for the month of Ashwin, 2075.
Annual Expenditure of
Budget Expenditure upto
Head No. Budget Head Appropriation the month of Bhadra the month of
Approved Ashwin
21111 Salary 5,20,000 85,000 37,000
21112 Local Allowance 50,000 10,000 2,500
22112 Communication Charge 60,000 8,000 5,000
22121 House Rent 2,00,000 40,000 6,000
22211 Fuel 35,000 6,000 3,000
22311 Office Materials 1,00,000 25,000 4,000
22312 Feeding Materials 1,00,000 16,000 7,000
22313 Books &Magazines 20,000 2,000 1,000
22612 Travelling Expenses 75,000 11,000 (Adv) 5,000
22911 Contingency Expenses 50,000 7,000 4,000
29311 Furniture & Fixtures 1,20,000 50,000 12,000
29611 Public Construction 70,000 15,000 3,500
Total: l4,00,000 2,75,000 90,000

298 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 299