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Features or characteristics of new accounting systems
The following are the basic features of new accounting system:

i. Based on double entry system of book-keeping: New accounting system is
based on double entry system of book keeping where every financial transaction
has two aspects debit and credit. So it is modern and scientific in nature.
ii. Uniformity and simplicity: New accounting system brought uniformity in
accounting all over the country. Besides this, it is simple and easy to understand.
Uniformity in accounting throughout the country has been achieved. Person
having simple knowledge of accounting principle can handle this account.
iii. Flexibility: New accounting system is very flexible in nature. As per the
demand of transactions and with the pace of time it can be adjusted. Many
times amendments have been made in this system from its implementation
phase to date.
iv. Secrecy: Use of different types of forms, slips, vouchers, receipts, books in
different transactions, secrecy is ensured in new accounting system.
v. Emphasis on banking transactions: It is based on banking transactions. Every
government office should deposit all revenues into bank and payments should
be made through cheque except petty cash expenses.
vi. Use of different forms: In new accounting system, different types of forms
known as Auditor General Forms (AGF) are used to record different types of
transactions. Some forms are used only in operating level offices and some
are used in central level offices. All the forms are prepared by Department of
Auditor General. For e.g. Journal Voucher (AGF No. 10), Bank Cash Book (AGF
No. 5), Budget Sheet (AGF No. 8) are some of the.
vii. Inter head budget transfer: In this system, the surplus amount of a budget
head can be transferred from one budget head to another budget head taking
the permission of either finance ministry or concerned authority.
viii. Based on budget head: The new accounting system has classidfied budgets
into different headings for making expenditure of public funds. This provides
clear guideline to keep the expenditure within budget limit.
ix. Compulsory auditing: In new accounting system, there is a compulsory
system of audit. It helps to prevent the misuse of government revenues and its
properties.
x. Principle of decentralization: Decentralization is the process of giving rights,
responsibilities and accountabilities to lower level staff. Under the new
accounting system, government offices have been classified into two levels

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