Page 193 - Office Practice and Accounting 10

10. Yearly Closing
i. Closing petty cash fund
ii. Closing of un-cleared advance
iii. Closing of budget

1. Revolving/Imprest fund release

From fiscal year 2051/52 B.S., this system of budget release was introduced. According
to this system in the beginning of the fiscal year, the office of the Treasury and
Comptroller creates a fund for each operating level office to be released. The amount
is equivalent to 1/6th of the previous year total expenditure. It is released to the
operating level offices to meet the expenses of first month of fiscal year (i.e. Shrawan).
This first release of revolving fund is known as preliminary revolving fund. This
fund may or may not be sufficient to meet the expenses of the month. If the previous
month release remains in deficit the additional imprest fund is released. But if the
expenditure could not be made of this amount in the following month, the amount is
taken back and no additional revolving fund release is made to such office later on,
in general. Now a days , budget is released equal to the amount of previous month.
Revolving fund received journal voucher is prepared as

Government of Nepal
…………………Office/Department/Ministry
AGF No. 10
J.V.No.:
Date: Chaitra -10
Code B.H. Debit Credit
No. Particulars L.F. No. (Rs.) (Rs.)
Dr. Nepal Rastra Bank
Cr. Revolving / Imprest Fund
(Being Revolving Fund received.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

For Example:
2072-Shrawan 5: District Education Office, Kathmandu, received a bank order
for initial revolving fund equal to 1/6th of Rs. 30,00,000 the total
budget expenditure of the last fiscal year

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