Introduction to Government Accounting

The accounting system which is followed by government offices is known as government accounting. This note provides the introduction, features and objectives of government accounting. The differences between of government and commercial accounting is also noted.

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The accounting system which is followed by government offices is known as government accounting.
Government account is the systematic and scientific process of recording, presenting, analyzing, summarizing, classifying and communicating the financial transaction of the government offices.
It maintains the proper record of government revenues and they're all implementation of development and administrative works.

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Briefly explain the qualities of a good letter.

Type: Short Difficulty: Easy

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Answer: A letter is written with a definite objective. The achievement of such objectives depends upon the effectiveness of the letter. An effective letter gives the positive impression and impels the receiver to do the jobs in the writer wants. The effective letter is one which possesses following qualities: <ol><li>Clearness The effort of letter writing is meaningless if the matter of the letter is not clear to the reader. In order to make clear to the reader, it should be drafted by using simple, short, sweet words and sentences. The intention of the writer can be understood by the reader only when the letter is written clearly. </li> <li>Correctness The clearness of the letter depends on its correctness. The letter should be correct in terms of language and information. The writer should draft the letter by using correct spellings, words, grammatical structure, sentences and giving the correct information, data, and figures. </li> <li>Completeness A letter, on one hand, should be concise and, on the other hand, should be complete. The letter should include all the information that the reader wants. An incomplete letter adds confusion, wastes time money and efforts. </li> <li>Conciseness A letter should be as short as possible. The writer should never write more than what makes the meaning of the letter clear to the reader. An unnecessary discussion should be avoided and economy of words should be enforced. </li> <li>Attractiveness The letter should be attractive in its appearance. The proper document design plays a prominent role to make the letter attractive. It should be folded properly and should be put in a right-sized envelope. </li> <li>Coherence Effectiveness of a letter depends to a great extent on its coherence or unity. Coherence means writing the matters of the letter in a sequential manner. One information should be followed by other information in a sequence and one paragraph should be supported by another paragraph. </li> <li>Courtesy A letter should be written by giving due respect to the feeling of the reader. Courtesy or politeness is achieved by showing attitude and friendly behavior towards the reader. A courtesy letter always helps in increasing good will and maintaining warm relations. It costs nothing but pays many things. </li> <li>Creativeness Effectiveness of a letter depends to a great extent on its coherence or writer should not try to copy the phrases, sentences and style from others. Only creative and original writing helps in impressing and convincing the receiver. </li> <li>Effectiveness An effective letter is one which achieves its objectives. It impels receiver to do just what the writer wants. If the letter possesses all the qualities discussed above, it is regarded as an effective letter which fulfills the purpose of it writing.</li> </ol>

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Qualities of a Good Letter

Introduction to Government Accounting

The accounting system which is followed by government offices is known as government accounting. Government account is the systematic and scientific process of recording, collecting, classifying and summarizing the financial transaction of the government offices. It helps to analyze the sources of government revenue as well as its utilization on administrative and development works. it also maintains the proper record of government revenues and they're all implementation of development and administrative works.

"Governmental Accounting is the process of recording, analyzing, classifying, summarizing, communicating, and interpreting information about government in aggregate and in detail, reflecting all transactions involving the receipts, transfer, and disposition of government funds and property." - Oshisami and Dean

By the given definition, it is clear that the government account is the systematic and scientific process of recording, presenting, analyzing, summarizing, classifying and communicating the financial transaction of the government offices. It is concerned with keeping a record of government revenue and their proper utilization in different development and administration work. It presents the receipt and payment position of the public fund.

Features of Government Accounting:

Profit and Loss: Government accounting does not reveal profit and loss of government organization. Its aim is not to determine operating result of the organization.
Government regulations: Government accounting is maintained as per the government rules and regulations.
Double entry system: It is based on the principles and assumptions of double entry system of book-keeping.
Budget heads: All the expenditures of government offices are classified into different budget heads and expenditure are made on approved budget heads.
Controlling budget: Government accounting facilitates the public administration for controlling the budget expenditures. All the records of public revenues and expenditures are made as per the specific directives, policies and principles and hence the effective controlling of the budget is possible.
Auditing: The concerned department of the government must audit the books of accounts so as to avoid misuse and misappropriation of public funds.

Objectives of Government Accounting:

To record financial transactions of revenues and expenditure relating to the government organizations.
To avoid the excess expenditures beyond the limit of the budget approved by the government.
To facilitate for making auditing.
To help to prepare different financial statements and reports.
To facilitate for estimating the annual budget by providing historical financial data of government and expenditures.
To prevent misappropriation of government properties by maintaining the systematic records of cash and store items.
To make expenditure according to the appropriate act, rules, and legal provisions.

Differences between Government Accounting and Commercial Accounting

Bases of difference	Commercial Accounting	Government Accounting
Meaning	The accounting system maintained by the business organization is called commercial accounting.	The accounting system maintained by government organization is called government accounting.
Objective	It is maintained by business offices to know the profit and loss and financial position of the business.	It is maintained by government offices to know the position of public funds.
Budget	It does not follow the government budgeting system.	It strictly follows the government budgeting system.
Auditing	A professional auditor who has a license of the audit can audit independently the books of accounts kept under commercial accounting.	A constitutional body audits books of accounts kept under government accounting.
Basis	It is prepared on the basis of cash as well as accrual.	It is prepared on a cash basis.
The level of Accounting	It does not divide the accounting system.	It has the system of the central level and operating level accounting.
Information	It provides information to the concerned parties about the operating result and financial position of the business.	It provides the information to the government about receipts, transfer, and disposition of public funds.s

Lesson

Government Accounting

Subject

Accountancy

Grade

Grade 9

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