Page 291 - Office Practice and Accounting 10

Statement of Clearance of Advance (AGF No. 14) is necessary to be prepared and
submitted by an operating level office along with monthly report. The operating level
office provides advances to the employees or to the party concerned under different
budget heads for different purposes. Sometimes advance given to employee may not
be clear at the end of fiscal year. Such expenses should be cleared artificially treating
as expenses equal to advance. To record such transactions a separate statement is
prepared which is called Monthly Advance Expenditure Report. This report is
prepared with the help of journal voucher, bank cash book and advance ledger
account. It includes date of advance given, name of the person receiving the advance,
the amount of the advance, possible reasons for non-clearance of advance.

The specimen of the report is given below.

AGF NO. 14

Government of Nepal
.............. Office / Department / Ministry
Monthly Advance Expenditure Report
Date of advance Advance to …… Advance Reasons for non-clearance
given Amount
Rs. Paisa

Submitted by: .................... Date: ....................
Approved by: .................... Date: ....................

Bank Reconciliation Statement (AGF No. 15)
According to New Accounting System, every government office should deposit all
revenues into bank and payments should be made through cheque except petty cash
expenses. In order to have proper control and minimize the misappropriation and
embezzlement of cash, such provision is brought into practice. Operating level offices
maintain a cash book to record all the cash and banking transactions which is known
as bank cash book. Every monetary transaction occurred in office is recorded in bank
cash book. At the same time, the bank also maintains the account of its customer

Office Practice and Accounting 10 285