Page 278 - Office Practice and Accounting 10

spent by an office in each head in a year is shown in this part.
For example: If Rs. 2,00,000 is allocated under salary head, the total amount of
annual budget that can be spent under salary is Rs. 200,000. So Rs. 2,00,000 is
recorded in this part under salary head. Receipts of supplementary budget, inter
office transfer and inter head budget transfer is also recorded in this section.
2. Budget Release Part : This part shows the amount of monthly budget release,
including initial and additional imprest fund release. Annual budget is not
released at a time. It is released as per the Monthly Expenditure Report (AGF
No.13) submitted by operating level office. When the budget release is received
out of the annual appropriation, it is recorded in the specified budget heads
and sub-heads columns. Budget transfer and supplementary budgets are also
recorded in this part.
For example: If Rs. 2,00,000 is allocated under salary head, and amount of
salary released upto a certain month is Rs. 20,000, the same amount is recorded
in this section. This part is balanced and closed at the end of every fiscal year
and surplus amount, if any, is transferred to budget freeze account. The surplus
amount of each budget head will be shown within the brackets in the concerned
column. Initial and additional revolving fund releases are shown in total
column. The amount of budget released and received is entered into respective
columns of budget sheet by preparing a journal voucher.
3. Budget Expenditure Part : This part shows the expenditure of budget in
their corresponding budget head. Every transaction of payment under each
budget head is recorded with the help of journal voucher. This part records
the expenditures incurred during the current month under specific budget
expenditure heads. The transactions which are not concerned with budget head
are not recorded in this section. Petty cash expenses are recorded in this part
at the time of reimbursement. Advance transactions, both advance given and
cleared are also recorded. Advance paid is recorded in the concerned column
and when it is cleared, amount of advance paid is shown in brackets and actual
expenditure is shown without brackets. At the end of every month, this part is
closed by adding all expenditures of respective budget heads and expenditures
till the previous month.

Closing of budget sheet
The budget sheet is closed monthly and it is submitted to central level office along
with other necessary documents to get the budget release for the next month. It is also
closed at the end of the fiscal year while closing the books of account.
Monthly Closing : The process of closing the budget sheet at the end of each month is
called monthly closing. It includes closing of expenditure as well as closing of budget
release by totaling of each column of budget sheet. To find out the expenditure
of current month, budget expenditures of each column are added. Then, the total
expenditure of current month is added to the expenditure up to the last month to find
out the amount of total expenditure up to the current month. Similarly, to find out the

272 Office Practice and Accounting 10