What is Budget sheet?
What is the budget sheet account?
budget sheet / Importance of budget sheet
What is The budget sheet / Importance of budget sheet , Part of budget sheet and Closing of budget sheet?
What is the budget sheet account?
budget sheet / Importance of budget sheet
What is The budget sheet / Importance of budget sheet , Part of budget sheet and Closing of budget sheet?
Meaning of budget sheet
Budget sheet is a kind of ledger, which is prepared to show the annual appropriation of budget, budget release and budget expenditure. It is one of the most important statements maintained by operating level offices of government under new accounting systems. The operating level officer ma
Importance of budget sheet
Budget sheet is importance for the following reasons:
• It provides information about head appropriate of budget release and amount spent on each budget head and the balance remained on each budget head.
• It provides the information of budget release that how much has been release and how much is yet to be released.
• It provides instruction to the operating level officer to make expenditures on main heads and sub-heads.
• It is importance tool to control the budget of an office.
• It discloses the amount of annual appropriation on each budget head.
• It also facilitates the preparation of statement of expenditures.
Part of budget sheet
According to the specimen form given, each budget sheet is divided into three parts are given below:
1. Annual appropriation section: in this part, budget allocation on different heads are mentioned. The approved budget amount on different budget heads for the fiscal year is shown on different column. No journal voucher is necessary to be passed to fill the things in this part. Sometime, supplementary budget and budget transfer are received from central level office. Thus, it is the first or upper part of the budget sheet.
3. Budget release section: budget release is second or middle part of a budget sheet which contains the amount of budget release received periodically recorded for each heads and sub-heads. The amount of budget release is received out of total annual budget appropriation from the office of treasury and comptroller. The amount received as initial revolving fund and additional revolving fund is also included in this part. The office of treasury and comptroller release the budget either on monthly or four monthly bases. At the end of each fiscal year, this part should close by depositing the surplus onto freeze account or consolidated fund account. The surplus budget on each head of expenditure is mentioned within bracket in the column of concerned heads.
4. Budget expenditure section: this is the last part of the budget sheet. In this part, all budget expenditure are recorded into different heads and subheads for the period. It also recorded the expenditure incurred through petty cash fund. It should not record those transaction which are not related with budget head subheads. Advance payment is also recorded. When advance is given to a certain person for some purpose, it is recorded in the concerned budget head column and total column. When the advance is cleared the advance amount is shown within the bracket and actual expenditure is recorded outside the bracket.
Closing of budget sheet
Monthly closing
At the end of month, the budget that is closed, I known as monthly closing, monthly closing of budget sheet included between the closing of expenditure and budget releases. Under this, first the total of budget expenditure is found to calculate the expenditure of current month. Then, the total expenditure of current month is added to total expenditure up to the last month to know the amount of total expenditure up to current month.
Similarly, the column under budget release are closed at the end of each month, while closing this part, the amount of budget release on each head for the present month is totaled and added with the total of the budget release received till the last month to determine the amount of total budget release received up to current month.
Annual closing
Budget sheet should be closed at the end of the fiscal year. It is called annual closing; it contains the total amount of budget expenditure and total amount o budget release. In the amount closing of budget sheet, total amount of budget expenditure is deducted from the total amount of total budget release to find out the surplus amounts if any. Annual closing of budget sheet is determined by the total amount of regular and supplementary budget released for the fiscal year and the total amount of expenditures paid out during the years on each head or subhead of expenses. The fiscal year starts in world April and end in March. Annual closing of budget sheet is always prepared at the end of last date of April.
Specimen of budget sheet
Budget sheet is maintained in a format as designed by A.G.F. No. 8. It has major three parts:
• Annual appropriate section
• Budget release section
• Budget expenditure section
There are 12 main heading and 40 sub heading of budget expenditures in budget sheet. A general format of a budget sheet is given attached page.
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3. Budget release section: budget release is second or middle part of a budget sheet which contains the amount of budget release received periodically recorded for each heads and sub-heads. The amount of budget release is received out of total annual budget appropriation from the office of treasury and comptroller. The amount received as initial revolving fund and additional revolving fund is also included in this part. The office of treasury and comptroller release the budget either on monthly or four monthly bases. At the end of each fiscal year, this part should close by depositing the surplus onto freeze account or consolidated fund account. The surplus budget on each head of expenditure is mentioned within bracket in the column of concerned heads.
4. Budget expenditure section: this is the last part of the budget sheet. In this part, all budget expenditure are recorded into different heads and subheads for the period. It also recorded the expenditure incurred through petty cash fund. It should not record those transaction which are not related with budget head subheads. Advance payment is also recorded. When advance is given to a certain person for some purpose, it is recorded in the concerned budget head column and total column. When the advance is cleared the advance amount is shown within the bracket and actual expenditure is recorded outside the bracket.
Closing of budget sheet
Monthly closing
At the end of month, the budget that is closed, I known as monthly closing, monthly closing of budget sheet included between the closing of expenditure and budget releases. Under this, first the total of budget expenditure is found to calculate the expenditure of current month. Then, the total expenditure of current month is added to total expenditure up to the last month to know the amount of total expenditure up to current month.
Similarly, the column under budget release are closed at the end of each month, while closing this part, the amount of budget release on each head for the present month is totaled and added with the total of the budget release received till the last month to determine the amount of total budget release received up to current month.
Annual closing
Budget sheet should be closed at the end of the fiscal year. It is called annual closing; it contains the total amount of budget expenditure and total amount o budget release. In the amount closing of budget sheet, total amount of budget expenditure is deducted from the total amount of total budget release to find out the surplus amounts if any. Annual closing of budget sheet is determined by the total amount of regular and supplementary budget released for the fiscal year and the total amount of expenditures paid out during the years on each head or subhead of expenses. The fiscal year starts in world April and end in March. Annual closing of budget sheet is always prepared at the end of last date of April.
Specimen of budget sheet
Budget sheet is maintained in a format as designed by A.G.F. No. 8. It has major three parts:
• Annual appropriate section
• Budget release section
• Budget expenditure section
There are 12 main heading and 40 sub heading of budget expenditures in budget sheet. A general format of a budget sheet is given attached page.
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