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Differences between central and operating level accounting
The following are the main differences between central level and operating level
offices:

Central Level Accounting Operating Level Accounting
It includes the accounting system of It includes the accounting system of
ministries,departments,commissions district office, zonal office and regional
and constitutional bodies. office.

It is maintained at central level offices. It is maintained at operating level
offices.
It records budget received from It records the budget received from
Ministry of Finance and releases to the central level offices and the
operating level offices. expenditures made on different budget
heads.
They aim at controlling of budget. They aim at implementation of budget.
They are responsible to Ministry of They are responsible to the central
Finance so central level accounting offices so accounting reports are
reports are submitted to Ministry of submitted to the concerned central
Finance. level offices.
Under this system, only a few number Under this system, a large number of
of forms are used. accounting forms are used.
Along with central level, they also There is no need to maintain central
maintain operating level accounting to level accounting.
record their regular expenses.

Historical development of new accounting system in Nepal
History of government accounting of Nepal was first introduced in the Lichchhawi
period. To record the revenue and expenditure of the government, the recording
system came into practice. During this period, the different sources of collecting
government revenues were trusts (Guthis), property taxes (Jinsikar), voluntary labour
(Shramdan) from general public. The revenues were utilized on war, construction of
temples, expenses of royal family, salary of government employees, performing of
religious rites(Puja/Yagya), etc. With the extension of trade link with Tibet, revenues
from trade and customs were also added to the list of sources of revenue during the
Malla period.
After the unification of Nepal in 1825 B.S, Prithivi Narayan Shah tried to make
improvements in the accounting system. The milestone of that period in the field of
account was introduction of 'Laldhadda' (nfn98\8f) to record revenues and administrative
expenses in 1871 B.S, and ‘Mothdhadda’(df]798\8f) to record land and its revenue.
Establishment of Nijamati Kitab Khana in 1925 BS brought the system of recording

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