Page 248 - Office Practice and Accounting 10

4. It helps to have control over cash of transactions of offices.
5. It facilitates to plan the cash requirements and disbursements.
6. It helps to show the position of revenue and expenditure.
7. It facilitates to prepare trial balance to check the arithmetic accuracy of financial
transaction of government office.
8. It facilitates to formulate budget providing information to central level.

Consideration while preparing bank cash book.
The following points are to be considered while preparing bank cash book:

1. Goshwara voucher for every transaction should be prepared.
2. If difference between debit and credit totals occurs in trial balance, this must be
equal to the amount of unclear advance otherwise there is error.
3. Inter head transfer of budget is not recorded in bank cash book.
4. Debit amount should be posted in the debit column and credit amount in the
credit column from journal voucher.
5. Cash receipt and payment is recorded in cash account, bank deposit and
withdrawal is recorded in bank account, all expenses relating to budget
expenditure is recorded in budget expenditure column. Similarly, advance paid
and cleared is recorded in advance account. Except these, if any information is
available recorded in miscellaneous account.
6. Petty cash fund is recorded in bank cash book at the time of reimbursement.
7. Advance transaction is recorded in three columns instead of two. While giving
advance, it is recorded in credit side of bank column, budget expenditure
column and advance given column and while clearing, it is recorded once in
advance cleared column and twice in budget expenditure column. Advance
given amount is recorded in bracket while advance cleared amount is recorded
without bracket in budget expenditure column.

Posting transactions in bank cash book
Transactions in Bank Cash Book is posted from journal voucher. Financial transactions
firstly recorded in Journal Voucher and related transactions are posted into Bank Cash
Book as following ways:
1. Posting of General Journal Voucher: General Journal Voucher is also known as
budget expenditure journal voucher. While recording general journal voucher
amount of debit is recorded in budget expenditure head with related budget
head number and amount of credit is recorded in credit side of bank account.

For example:

The District Forest Office, Bhaktapur purchased machinery for Rs. 70,000 and payment
was made through cheque no. 01 on 2072 Mangsir 28.

242 Office Practice and Accounting 10