Journal Voucher for Advance Transactions

Advance is an amount, which is given to official staff and other parties before receiving goods and services. It is given to perform a specific task. After the completion of such task, the advance amount should be cleared. Under new accounting system, the record of advance is made twice as follows:

Journal voucher at the time of giving advance

An advance is given to an official staff or to another party to make expenditure on the related budget head. When the advance is given the party receiving the advance with the related budget head is debited and Nepal Rastra Bank is credited. The journal voucher at the time of giving advance is passed as follows:

Dr. Name and post of the receiver

Advance for ……. (Budget head)

Cr. Nepal Rastra Bank

(Being advance given to Mr. …..for the purchase of ……)

Example:

Advance given to Section Officer, Ms. Sujata Raut for the purchase of vehicle of Rs. 1,00,000.

Journal voucher at the time of clearing advance

The amount of advance, which is given to perform the specific task, should be cleared after its completion. It is cleared after the submission of necessary bills and documents. The amount of expenditure may be equal to the advance, less than the advance or more than the advance amount. The following are the five conditions to clear the advance:

1. When the amount of expenditure is equal to the advance
   When the amount of bill of expenditure remains equal to the amount of advance given, the following journal voucher is passed for clearing the advance:
   Dr. B.E. Name of the Budget Head
   Cr. The Name and Post of the person
   Clearance of advance for.......
   (Being advance for ...... cleared)
   
   Example:
   

   Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 1,00,000 and her advance was cleared.

   Government of Nepal .......... Office/Dept/Ministry Journal Voucher

   AGF No. 10 JV No. Date:

   Code No.	Particulars	LF	BH No.	Debit Rs.	Credit Rs.
   	Dr. BE Vehicle			1,00,000
   	Cr. Section Officer, Ms. Sujata Raut
   	Advance for purchase of vehicle cleared		29411		1,00,000
   	(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)

   Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date:

   Cheque No: Cheque amount: One lakh only. Approved by: Mr. XYZ Post: Office head Date:

2. When the amount of expenditure is more than the advance
   If the amount of expenditure is more than the advance given, the excess amount of expenditure is paid through cheque. The following journal voucher is passed for clearing the advance:
   Dr. B.E. Name of the Budget Head
   Cr. The Name and Post of the person
   Clearance of advance for.......
   Cr. Nepal Rastra Bank
   (Being advance for ...... cleared by issuing a cheque for excess amount of expenditure)
   Example:
   

   Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 1,20,000 and her advance of Rs. 1,00,000 was cleared.

   Government of Nepal .......... Office/Dept/Ministry Journal Voucher

   AGF No. 10 JV No. Date:

   Code No.	Particulars	LF	BH No.	Debit Rs.	Credit Rs.
   	Dr. BE Vehicle		29411	1,20,000
   	Cr. Section Officer, Ms. Sujata Raut
   	Advance for purchase of vehicle cleared				1,00,000
   	Cr. NRB				20,000
   	(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)

   Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date:

   Cheque No: Cheque amount: Twenty thousand only. Approved by: Mr. XYZ Post: Office head Date:

   When the amount of expenditure is less than the advance
   If the amount of expenditure is less than the advance given, the surplus amount is returned to concerned office or deposited in the bank. The following journal voucher is passed for clearing the advance:
   Dr. B.E. Name of the Budget Head
   Dr. Nepal Rastra Bank
   Cr. The Name and Post of the person
   Clearance of advance for.......
   (Being advance for ...... cleared and surplus amount is returned)
   Example:

   Section Officer, Ms. Sujata Raut, submitted the bill of the vehicle for Rs. 75,000 and her advance of Rs. 1,00,000 was cleared.

   Government of Nepal .......... Office/Dept/Ministry Journal Voucher

   AGF No. 10 JV No. Date:

   Code No.	Particulars	LF	BH No.	Debit Rs.	Credit Rs.
   	Dr. BE Vehicle		29411	75,000
   	Dr. Nepal Rastra Bank			25,000
   	Cr. Section Officer, Ms. Sujata Raut				1,00,000
   	Advance for purchase of vehicle cleared
   	(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)

   Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date:

   Cheque No: Cheque amount: One lakh only. Approved by: Mr. XYZ Post: Office head Date:

   When the whole amount of the advance is returned
   Sometimes, the party may fail to perform the assigned job. In such condition, the whole amount of advance should be returned to the office. The following journal voucher is passed for clearing the advance:
   Dr. Nepal Rastra Bank
   Cr. The Name and Post of the person
   Clearance of advance for.......
   (Being advance for ...... cleared by returning the amount of advance)
   Example:

   Section Officer, Ms. Sujata Raut, made no expenditure so her whole amount of advance was deposited into the bank and her advance of Rs. 1,00,000 was cleared.

   Government of Nepal .......... Office/Dept/Ministry Journal Voucher

   AGF No. 10 JV No. Date:

   Code No.	Particulars	LF	BH No.	Debit Rs.	Credit Rs.
   	Dr. Nepal Rastra Bank			1,00,000
   	Cr. Section Officer, Ms. Sujata Raut
   	Advance for purchase of vehicle cleared				1,00,000
   	(Being advance given to SO Ms. Sujata Raut for the purchase of vehicle)

   Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date:

   Cheque No: Cheque amount: One lakh only. Approved by: Mr. XYZ Post: Office head Date:

   When the partial clearance is made
   Sometimes, the party who has taken the advance may clear the advance partially. The following journal voucher is passed for clearing the advance:
   Dr. B.E. Name of the Budget Head
   Cr. The Name and Post of the person
   Clearance of advance for.......
   (Being advance for ...... cleared partially)
   Example:

   Section Officer, Ms. Sujata Raut, submitted bill of Rs. 70,000 a partial clearance of her advance.

   Government of Nepal .......... Office/Dept/Ministry Journal Voucher

   AGF No. 10 JV No. Date:

   Code No.	Particulars	LF	BH No.	Debit Rs.	Credit Rs.
   	Dr. BE Vehicle		29411	70,000
   	Cr. Section Officer, Ms. Sujata Raut
   	Advance for purchase of vehicle cleared				70,000
   	(Being advance given to SO Mrs. Sujata Raut for the purchase of vehicle)

   Receipt No: Amount received: Submitted by: Mr. ABC Post: Accountant Date:

   Cheque No: Cheque amount: Seventy thousand only. Approved by: Mr. XYZ Post: Office head Date: