What is Government accounting?
What is Difference between government accounting and commercial accounting?
What is Difference between government accounting and commercial accounting?
Concept and meaning of government accounting
Government accounting is the systematic recording analysis and communication of financial transactions made by a government body. It helps to analyze the financial information of government organizations.
According to oshisami and dean "government accounting is the process o
Features of government accounting
Government accounting has the following features:
• It never deals with profit and loss of government organizations.
• It following government rules and regulations.
• It following rules of double entry system of book keeping.
• It records revenue and expenditures in accordance with the budget head.
• It also deals with banking transaction by opening separate bank account to operate different funds of the government.
• It audits revenues and expenditures of government to control misuse of money and power.
Objectives of government accounting
The objectives of government accounting are as follows:
• It records financial transaction of government office.
• It emphasizes on expenditures within the limit of the budget.
• It emphasizes on the legal expenditures, according to the appropriate act.
• It suppliers required and effective financial data and information for the operation of public fund.
• It maintains proper records to prevent misuses of government properties.
• It facilitates the process of audit.
• It helps to proper an annual report.
In spite similarities, there are also some different between then in objective, natures and activities. The different are as follows:
Bases of different
Objectives
Budget
Level of accounting
Basis
Rules and regulation
Acknowledgement
Auditing
Government accounting
To know the position of public funds.
Parliament approves the budget which has to be followed strictly by the executive.
Books of account are classified into central level accounting and operating level accounting.
It is cash basis.
It strictly follows the government rules and regulation.
It gives information to the government and public relating to receipts, transfer and disposition of government funds.
A condition body audit books of accounts kept under government accounting.
Commercial accounting
To calculate the profit or loss a certain period.
It is not based on the budget.
Books of account are not classified into central level accounting and operating level accounting.
I am both cash basis and accrual basis.
Ti follows the rules and regulation of general accepted accounting (gaap)
It gives information of financial transaction to the concerned parties related to the business organization.
Any auditor's license holder can audit the books of account.
Historical development of government accounting in Nepal
Many changes have taken place in the government accounting systems in Nepal. Double entry system of book keeping introduced in 2018 B.S. is the latest development.
Before the introduction of this system, the record of revenue of expenditures was found in the 'Lichhavi period'. I 18th century, the government officer started using accounting systems and this system was improved by prithavi naraya shah in 1825 B.S., the government introduced of book "Laldhadda" to recorded revenue and administrative expenditure of the government. 'Mothadhada' was also introduced for recording details of land and its revenue.
In 1952 B.S., kitabkhana office was established to recorded the salary of government employees in 1936 B.S. kharidar gunawanta propounded syaha srestha parnali to give real pictures of government revenue and expenditure.
After the establishment of democracy in 2007 B.S., the government began maintaining the systematic book of accounts. Consequently in 2008 B.S. 'procedural rule of government fund expenditures. 2016 B.S. bhaktani srestha pranali was introduced. Within a year administration. In the year 2017 B.S., bhuktani srestha pranali was introduced. Within a year the developed system of accounting double entry system of book keeping was introduced at the recommendation of an accounting committee. Since 2019 B.S. fiscal year, double entry system of book keeping is begging used in all HMG officers because it is systematic and scientific.
Types of accounting system used in Nepal
There were various types of accounting systems used in Nepal before the introduction of new accounting system. Some important systems of accounting used in Nepal are as follows:
• Wasil banki srestha pranali
• Shyaha srestha pranali
• Form srestha pranali
• Bhuktani srestha pranali
Wasil banki srestha pranali
Wasil banki srestha pranali is a simple book or statement of recording of government revenue and expenditure. This pranali was suitable for those offices, which were established for short period and which had a small number of financial transaction. It was based on a single entry system of book keeping. Where one side of the page eas used to recorded revenues and the other side of the page was used to record expenditure. Therefore, it was establish to find the total amount of revenues and expenditure. Under this system, book of accounts were closed at the end of the fiscal year or at the completion of the work. This pranali was not able to analyze the transaction under number of different heads.
Shyaha srestha pranali
In the process of the historical development of government accounting in Nepal, shyaha srestha pranali is one of the most important systems, which was propounded by kharidar gunawanta in 1936 B.S. this pranali was more systematic than wasil banki srestha pranali. The total and balance could be shown on the same leaf when required. Different types of book were used under this paranali are:
Shyaha
Shyaha was an original recorded of financial transaction like journal voucher of double entry system of book keeping. It was useful to record government incomes and expenditure. Shyaha was prepared in English alphabet "T" shape. A leaf was folded into 16, 24, 32 or 36, crease as per the requirements of the office to recorded the government revenue and expenditures. All the expenses were recorded in the right hand side and all the revenue were in the left hand side of a shyaha. At the end of the day, both sides of shyaha were totaled and underlined which is called "Terij". Again, the grand total is found by adding to the total up to the previous day which the current day's amount and it is called "Berij". A shyaha was either closed at the end of each month or at the end of the fiscal year. Shyaha could be classified into following three types.
a. Nagadi shyaha: nagadi shyaha was prepared for cash transction.
b. Jinsi shyaha: jinsi shyaha: dharauti was prepared for properties.
c. Dharauti shyaha: dharauti shayaha wa prepared to recorded the amount deposited by the public for specific purposed.
Awarje
Awarje was another most important book maintained under syhaha srehtha paranali, which was like the ledger. It was also kept under a double system entry system of book keeping. In this book, all the transaction was divided into different heads of revenue and expenditures. It had the following categories:
a. Income awarje: income awarje was prepared to record and classify the government revenue. It was further classified into regular income awarje and irregular income awarge.
b. Vinjalik (expenditure) awarje: vinjalik awarje was prepared to record and classify the government expenditure.
Dhapot
Dhapot can be compared with modern balance sheet. It was prepared to show the summary of the government fund position of a certain period. There are the following three types of dhapat used in the shyaha srestha pranali:
a. Job end dhapot: it was prepared after the completion of preject work or at the end of job.
b. Month end dhapot: it was prepared at the end of each month.
c. Year end bhapot: it was prepared to record at the end of fiscal year.
Form shreatha pranali
Form srestha pranali was introduced in 1968 B.S. it was specially prepared to record land revenues of the city and teral areas. Due to the increase in the number of financial transactions. Altogether 51 different forms were used to record the different transaction.
The following were some of them.
a. Day book of cashier
b. Ten days report
c. Fifteen days reports
d. Monthly cash statement
e. Remainder journal
f. Monthly pay sheet
g. Outstanding revenue record form
h. Statement of the balance collection from debtors
Bhaktani srestha pranali
Bhuktan srestha pranali was development in 2017 B.S. it was mainly concerned with the systematic recording of government expenditure according to the budget heads. Bhuktani srestha pranali was a more scientific system and it was based on the double entry system of book keeping. Under this system, the government officers were classified into central and operation level to simplify in record keeping of revenue and expenditure of public fund.
In 1952 B.S., kitabkhana office was established to recorded the salary of government employees in 1936 B.S. kharidar gunawanta propounded syaha srestha parnali to give real pictures of government revenue and expenditure.
After the establishment of democracy in 2007 B.S., the government began maintaining the systematic book of accounts. Consequently in 2008 B.S. 'procedural rule of government fund expenditures. 2016 B.S. bhaktani srestha pranali was introduced. Within a year administration. In the year 2017 B.S., bhuktani srestha pranali was introduced. Within a year the developed system of accounting double entry system of book keeping was introduced at the recommendation of an accounting committee. Since 2019 B.S. fiscal year, double entry system of book keeping is begging used in all HMG officers because it is systematic and scientific.
Types of accounting system used in Nepal
There were various types of accounting systems used in Nepal before the introduction of new accounting system. Some important systems of accounting used in Nepal are as follows:
• Wasil banki srestha pranali
• Shyaha srestha pranali
• Form srestha pranali
• Bhuktani srestha pranali
Wasil banki srestha pranali
Wasil banki srestha pranali is a simple book or statement of recording of government revenue and expenditure. This pranali was suitable for those offices, which were established for short period and which had a small number of financial transaction. It was based on a single entry system of book keeping. Where one side of the page eas used to recorded revenues and the other side of the page was used to record expenditure. Therefore, it was establish to find the total amount of revenues and expenditure. Under this system, book of accounts were closed at the end of the fiscal year or at the completion of the work. This pranali was not able to analyze the transaction under number of different heads.
Shyaha srestha pranali
In the process of the historical development of government accounting in Nepal, shyaha srestha pranali is one of the most important systems, which was propounded by kharidar gunawanta in 1936 B.S. this pranali was more systematic than wasil banki srestha pranali. The total and balance could be shown on the same leaf when required. Different types of book were used under this paranali are:
Shyaha
Shyaha was an original recorded of financial transaction like journal voucher of double entry system of book keeping. It was useful to record government incomes and expenditure. Shyaha was prepared in English alphabet "T" shape. A leaf was folded into 16, 24, 32 or 36, crease as per the requirements of the office to recorded the government revenue and expenditures. All the expenses were recorded in the right hand side and all the revenue were in the left hand side of a shyaha. At the end of the day, both sides of shyaha were totaled and underlined which is called "Terij". Again, the grand total is found by adding to the total up to the previous day which the current day's amount and it is called "Berij". A shyaha was either closed at the end of each month or at the end of the fiscal year. Shyaha could be classified into following three types.
a. Nagadi shyaha: nagadi shyaha was prepared for cash transction.
b. Jinsi shyaha: jinsi shyaha: dharauti was prepared for properties.
c. Dharauti shyaha: dharauti shayaha wa prepared to recorded the amount deposited by the public for specific purposed.
Awarje
Awarje was another most important book maintained under syhaha srehtha paranali, which was like the ledger. It was also kept under a double system entry system of book keeping. In this book, all the transaction was divided into different heads of revenue and expenditures. It had the following categories:
a. Income awarje: income awarje was prepared to record and classify the government revenue. It was further classified into regular income awarje and irregular income awarge.
b. Vinjalik (expenditure) awarje: vinjalik awarje was prepared to record and classify the government expenditure.
Dhapot
Dhapot can be compared with modern balance sheet. It was prepared to show the summary of the government fund position of a certain period. There are the following three types of dhapat used in the shyaha srestha pranali:
a. Job end dhapot: it was prepared after the completion of preject work or at the end of job.
b. Month end dhapot: it was prepared at the end of each month.
c. Year end bhapot: it was prepared to record at the end of fiscal year.
Form shreatha pranali
Form srestha pranali was introduced in 1968 B.S. it was specially prepared to record land revenues of the city and teral areas. Due to the increase in the number of financial transactions. Altogether 51 different forms were used to record the different transaction.
The following were some of them.
a. Day book of cashier
b. Ten days report
c. Fifteen days reports
d. Monthly cash statement
e. Remainder journal
f. Monthly pay sheet
g. Outstanding revenue record form
h. Statement of the balance collection from debtors
Bhaktani srestha pranali
Bhuktan srestha pranali was development in 2017 B.S. it was mainly concerned with the systematic recording of government expenditure according to the budget heads. Bhuktani srestha pranali was a more scientific system and it was based on the double entry system of book keeping. Under this system, the government officers were classified into central and operation level to simplify in record keeping of revenue and expenditure of public fund.
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