Journal Voucher for Budget Expenditure and Annual Closing

Journal voucher for budget expenditure

The journal voucher which is prepared to record the budget expenditure of government is called journal voucher for budget expenditure. It is also known as general journal voucher. This type of voucher is prepared when the payment is made on the head of budget expenditure. To represent budget expenditure, the word B.E. is mentioned before the title of an expenditure on the journal voucher.

Dr. BE (Name of the budget head)

Dr. BE (Name of the budget head)

Cr. Nepal Rastra Bank

(Being payment made for ……. by cheque)

Example:

The District Health Office, Kathmandu purchase machinery equipment for Rs. 50,000 and payment were made through cheque.

Journal Voucher for the Annual Closing

The process of closing different accounts at the end of the fiscal year is called annual closing of accounts. The following journal vouchers are passed for annual closing:

• Closing Advance Account
  If the advance given under different heads is not cleared till the end of the fiscal year, such advances should be cleared artificially treating as expenses equal to the advance. The following journal voucher is passed for an artificial clearance of advance:
  Dr. B.E. The name of the budget head
  Cr. The name and post of the person
  Clearance of advance
  (Being advance cleared artificially)
  
  
• Closing Petty Cash Fund
  The petty cash fund should be closed at the end of the fiscal year by passing the following journal voucher:
  Dr. Nepal Rastra Bank (With unspent amount of fund)
  Dr. Budget head
  Cr. Petty cash fund
  (Being petty cash fund closed)
  
  
• Closing of Revolving/ Imprest Fund Account and Bank Account
  The bank account is closed by issuing a cheque for the unspent amount of revolving fund. Such unspent amount is deposited in the consolidated fund. Such deposit of unspent imprest amount will close the bank account and revolving fund account it is so because the unspent budget of the current fiscal year under regular as well as development budget lapses at the end of the fiscal year. The following journal voucher is passed for the closing of revolving fund:
  Dr. Revolving fund
  Cr. Budget release
  Cr. Nepal Rastra Bank
  (Being revolving fund and bank account closed)
  
  
• Closing of Budget Release and Budget Expenditure
  A closing entry is required to close the total budget expenditures and total budget release accounts. For this, the total amount of budget expenditures should be matched with the total amount of budget release. The following journal voucher is passed to close the total budget expenditures and total budget release accounts:
  Dr. Total budget release account
  Cr. Total budget expenditures account
  (Being closing of annual accounts)