Page 183 - Office Practice and Accounting 10

ii. Journal Voucher when advance is cleared:
Advance is not actual expenditure because the amount given as advance may return
without expenses. The actual expenses may be more or less than amount of advance
given to employees. So the amount of actual expenditure is known only when the
bill of expenses is submitted by the employee. Advance is required to be cleared
submitting the statement of expenditure with supporting documents after completion
of particular task. After clearance of advance, it is considered as actual expenses.
Otherwise ,it remains as a liabilities against the name of person.

Advance clearance may be in the following conditions:
a. If whole amount of advance is returned. (E=0)
b. If whole amount of advance is spent. (E=A)
c. If expenditure is more than advance given. (E>A)
d. If expenditure is less than advance given. (E<A)
e. If advance is cleared partially.

a. If whole amount of advance is returned. (E=0)

Due to various reasons advance taken by the employees may return to the office
without any expenditure. In such case, the person or organization taking advance
returns total amount of cash or cheque of advance to the concerned authority. In this
case, the voucher is prepared as:

AGF NO. 10
Government of Nepal
............ Office/Department/Ministry
J.V. No. ..........
Date: .............
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. N.R. Bank/Cash
Cr. Designation and Name of employee
+Budget head+ Advance Cleared
(Being advance of ……..cleared after
returning ……..)
Receipt No. ........................ Cheque No. ...........................
Amount Received ............... Cheque amount: ..................
Submitted by ..................... Approved by ..........................
Designation: Designation: .........................
Date: ............... Date: .....................................

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