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2. Reduces work burden: It reduces the work load of chief accountant/cashier of
recording tiny and frequent payment.
3. Easy method: The system of petty cash fund is very easy. Even the person
without strong accounting knowledge can maintain petty cash fund.
4. Saves time: This method is very scientific and time saving. Under analytical
petty cash fund, total of each column can easily be ascertained and only
periodical total is taken for ledger posting.
5. Helps to prevent fraud: Chief accountant/cashier verifies petty cash book along
with voucher. Besides this, petty cashier is also responsible for error and fraud
in petty cash book. In this way, double checking system prevents the possible
fraud and errors.

Salary distribution and necessary deductions

Office pays salary to its employees after making necessary deductions such as
provident fund, citizen investment fund, income tax, personal loan, etc. Journal
vouchers of such deductions are prepared in following ways:
a. Employee's provident fund: Facility of provident fund is provided to the
permanent staff of government offices. While distributing salary to staff, 10%
of their salary is deducted as contribution from the staff's side and an equal
amount of the deducted sum is contributed by the employer. Both these sums
are deposited into the provident fund account. Amount of provident fund is
credited while making deduction and same amount is debited while depositing
it into the concerned account.
While deducting provident fund from salary:

Government of Nepal
…………………Office/Department/Ministry AGF No. 10
J.V.No.: .........
Code Particulars L.F. B.H. Debit Credit
No. No. (Rs.) (Rs.)
Dr. B.E. salary 21111
Cr. Provident fund
Cr. NR.Bank
(Being salary for the month of distributed
after deducting provident fund.)
Total
Receipt No. : ........... Cheque No. : ...........
Received Amount : ........... Cheque amount : ...........
Submitted by : ........... Approved by : ...........
Position : ........... Position : ...........
Date : ........... Date : ...........

198 Office Practice and Accounting 10