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13 Government Account

Introduction

Accounting is the art of recording, classifying and summarizing of financial activities
to know the financial result as per requirement. It is an art of recording transactions
according to sizes, nature and types of organizations. The accounting can be classified
into two categories as such:-

i. Government Accounting
ii. Commercial Accounting

Government Accounting
Government accounting refers to the recording of all revenue and expenditure
that belong to government. It is the process of collecting, recording, classifying,
summarizing, interpreting and reporting to the concerned authority with all those
financial transactions made by a government body.

According to Oshisami and Dean, "Government Accounting is the process
of recording, analyzing, classifying, summarizing, communicating and
interpreting financial information about government in aggregate and in detail,
reflecting all transactions involving the receipts, transfer and disposition of
government fund and property."

The principles and procedures of government accounting are governed by government
financial rules, regulations and acts that may provide the relevant information for
formulation of plans and policies for taking important financial decision. It helps to
analyze the financial transactions of governmental body.

The accounting system which is being used by government of Nepal since 2019
BS is government accounting. It is also known as 'New Accounting System'. It was
implemented in the offices of Kathmandu valley since the 2019BS and since 2025 BS,
it was introduced and implemented throughout the country. This accounting system
brought uniformity in accounting all over the country.

The government accounting maintained by the government in Nepal. is classified
into two levels i.e. central level accounting and operating level accounting.

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