New accounting system
what is New accounting scheme & Importance of novel accounting system?
what is New accounting scheme & Importance of novel accounting system?
Concept of novel accounting system
As nosotros accept already discussed inwards the previous chapter that shyaha srestha pranali in addition to shape srestha pranali failed to tape the increasing break of transaction inwards a systematic way. As a result. Bhuktani srestha pranali was introduced inwards 2017 B.S. but this scheme besides became unsuitable to re
• Accounting full general of his majesty government
• Under secretarial assistant of ministry building of finance (foreign assist department)
• Public administrative of the US of America aid.
• Accounting specialist of the U.N.
The committee, later on a detailed study for almost 288 days. Presented a draft every bit suggestions in addition to recommendations for the scientific, modernization, improvement in addition to decentralization of accounting systems inwards Nepal. The draft was approved past times the auditor full general on 20th magh 2018. B.S. in addition to it was besides approved past times his majesty the manful individual monarch of s chaitra 2018. The scheme was introduced every bit a novel accounting sytems of his majesty regime in addition to it was implemented inwards the component subdivision of Kathmandu valley since the financial twelvemonth 2019/2020 B.S. it was called 'new accounting system". The novel accounting scheme became fully operational from shrawan 2025 through Nepal.
Feature in addition to characteristics of novel accounting system
Some of the basic features of novel accounting systems of his majesty regime may travel studied nether the next headings:
1. Based on the regulation of double entry system: new accounting scheme is based on double entry scheme of mass keeping. Under this principle, each financial transaction has 2 aspects i.e. each tractions is recorded on both debit in addition to credit sides of books of describe organisation human relationship amongst the same monetary value thus, arithmetical accuracy tin travel easily tested in addition to accounting errors are besides detected in addition to rectified.
2. Uniformity in addition to simplicity: novel accounting systems are used inwards the entire regime officeholder throughout the keeping of Nepal. It is elementary to sympathise in addition to slowly to operate because it is based on the regulation of double entry system. An employee having lower qualification tin easily sympathise it.
3. Emphasis of banking transaction: at that spot are to a greater extent than probability of misuse in addition to manipulation of cash. The novel accounting scheme of HMG has given to a greater extent than emphasis of banking transaction. every regime officeholder should deposit all revenues into banking concern in addition to payment are made through cheques except piddling cash payment.
4. Classification of offices: government organizations are classified into fundamental aeroplane offices of scheme (ministry) in addition to operating aeroplane component subdivision on the footing of their financial transaction.
5. Secrecy: in novel accounting system, high marking of secrecy tin travel maintained for accounting records. Separate forms, receipts slips etc are used for the separate nature of transaction.
6. Based on budget heads: the novel accounting systems is based upon dissimilar budget heads for making expenditures of populace regime officeholder should non brand expenditures to a greater extent than than allocated to a head.
7. Inter-head transfer of budget: in novel accounting systems, the surplus amount of a budget caput tin travel transferred from i budget caput to only about other budget caput past times taking permission of finance ministry.
8. Used of bracket: use of bracket is only about other most of import characteristic of novel accounting system. The bracket is used to demonstrate the amount to travel credited. It the fourth dimension of payment for effective budgetary control.
9. Treatment of advance: inwards novel accounting system, an advance payment given for whatsoever expenditure is treated every bit budgeting expenditures at the fourth dimension of payment for effective budgetary control.
10. Level of regime component subdivision in addition to decentralization: the novel accounting scheme is given emphasis is decentralization for accounting work. The regime officers accept been classified into 2 aeroplane i.e. fundamental aeroplane in addition to operating aeroplane accounting. Central aeroplane describe organisation human relationship is maintained past times fundamental aeroplane component subdivision in addition to functioning aeroplane describe organisation human relationship past times operating aeroplane office. Central aeroplane offices produce non interfere inwards regular accounting function of operating aeroplane office.
11. Provision of auditing: inwards novel accounting systems, at that spot is the provision of audit, then audit of books of accounts is compulsory to discovery in addition to payment the misuse of regime holding in addition to revenue. The component subdivision of the auditor full general is responsible for audit inwards regime officer.
Objective of novel accounting system
The next are the objectives of novel accounting scheme started past times the describe organisation human relationship commission 2017:
• To furnish financial information this is required fourth dimension to fourth dimension for preparing financial report.
• To prepared proper systematic accounting for cash in addition to other properties to command such possible misuses.
• To furnish necessary in addition to relevant information required for the training of budget to the concerned office.
• To decide the aeroplane in addition to seat of officers who are responsible to submit the accounts of dissimilar projects implemented.
• To banking concern gibe the financial transactions if they are truthful in addition to fair idea the auditing.
• To brand the audit chore simple, less fourth dimension consuming in addition to economical.
• To collect the historical information of budget head.
Important of novel accounting system
The of import of novel accounting scheme are summarized below:
• To travel along the existent motion painting of financial transaction of regime offices to prepared the records of regime fund. Investment, revenue, in addition to expenses.
• To provides all financial data, statistics in addition to other information required for financial direction in addition to control.
• To furnish proper guidance to regime for the training in addition to implementations of economical computer program in addition to policy of the nation.
• To furnish necessary information in addition to financial information to the regime for training of annual budget.
• To command the financial activities of the regime because all the revenues in addition to expenditures of regime are recorded according to the financial rules in addition to procedures.
• To forestall the mensurate of regime revenues in addition to its properties because at that spot is a to provision of audit of the books of account.
• To furnish for certain guidelines for training of finical statements.
• To ensure in addition to effective uses of the assist in addition to loan amount provided past times unusual donors in addition to agencies.
Limitation of novel accounting system
New accounting systems of HMG are besides non complimentary from weakness in addition to limitations. Some of the limitations are:
• There is no proper machinery to banking concern gibe frauds in addition to errors committed inwards the books of describe organisation human relationship in addition to besides if failed to command corruption, misuse in addition to embezzlement of regime cash in addition to properties.
• It has given less emphasis on goods, properties in addition to assets because it has given emphasis entirely on expenditures.
• It is based on cash footing of accounting. No tape is made on accruals basis.
• There are higher chances of misappropriation of stock (investment) due to the lack of systematic in addition to proper shop keeping system.
• It cannot furnish necessary information or information for making determination on the toll of production in addition to labor efficiency.
• It does non next the regulation of double entry scheme inwards practice. For example, entry for advance transaction required triple positing inn banking concern cash book.
• All the forms are designed past times the subdivision of full general produce non fulfill the requirement of managerial need.
Levels of novel accounting system
HMG's officers are divided into 2 levels i.e. fundamental aeroplane in addition to operating aeroplane nether novel accounting system.
Central aeroplane accounting
Central aeroplane accenting refers to the accounting maintained past times fundamental aeroplane offices. Those officers received budget conduct straightaway from the ministry building of financial in addition to unloose them to operating aeroplane officers. The ministry building of financial does non unloose budget conduct to operating aeroplane officer. They co-ordinate in addition to command the operating aeroplane officeholder idea the country. Ministries, subdivision in addition to the legal bodies come upwards nether come upwards nether fundamental aeroplane officers. The accounting. Under this accounting, the budget received from the ministry building of financial in addition to released to operating aeroplane officeholder inwards price of advance footing in addition to cleaning the advances every bit against their monthly reports are recorded. The next are only about major describe organisation human relationship maintained past times fundamental aeroplane offices.
a. Journal voucher
b. General ledger
c. Subsidiary books
d. Advance ledger
e. Bank statements
f. Statement of advance given
g. Control ledger for the amount deposited into consolidated fund etc.
Operating aeroplane accounting
Operating aeroplane officeholder refer to those regime branches or regional officeholder which received budget from fundamental aeroplane officeholder in addition to brand expenditure according to the prescribed budget heads. The accounting systems adopted past times operating aeroplane officeholder are known every bit operating aeroplane accounting. The operating officers are responsible for their respective fundamental officeholder in addition to accept to submit their disputation of expenditures to the concerned fundamental aeroplane officer. In shown operating level:
• Receives budget nether dissimilar heads.
• Incurs budget expenditure accounting to the budget teaching in addition to prescribed rules in addition to regulations.
• Creates records of budget received in addition to spent.
• Forward monthly study in addition to disputation to clear advance remaining inwards its name.
• Gets its accounts audited internally from the component subdivision of the treasury in addition to comptroller in addition to financial from the subdivision of audit general.
• Prepares budget guess for the side past times side financial year.
The next are the accounting documents maintained past times the operating aeroplane officers.
a. Journal voucher
b. Bank cash bank
c. Subsidiary ledger
d. Statement of expenditures.
Different betwixt fundamental aeroplane in addition to operating aeroplane accounting
Basis
Central aeroplane accounting
Operating aeroplane accounting
Objective of novel accounting system
The next are the objectives of novel accounting scheme started past times the describe organisation human relationship commission 2017:
• To furnish financial information this is required fourth dimension to fourth dimension for preparing financial report.
• To prepared proper systematic accounting for cash in addition to other properties to command such possible misuses.
• To furnish necessary in addition to relevant information required for the training of budget to the concerned office.
• To decide the aeroplane in addition to seat of officers who are responsible to submit the accounts of dissimilar projects implemented.
• To banking concern gibe the financial transactions if they are truthful in addition to fair idea the auditing.
• To brand the audit chore simple, less fourth dimension consuming in addition to economical.
• To collect the historical information of budget head.
Important of novel accounting system
The of import of novel accounting scheme are summarized below:
• To travel along the existent motion painting of financial transaction of regime offices to prepared the records of regime fund. Investment, revenue, in addition to expenses.
• To provides all financial data, statistics in addition to other information required for financial direction in addition to control.
• To furnish proper guidance to regime for the training in addition to implementations of economical computer program in addition to policy of the nation.
• To furnish necessary information in addition to financial information to the regime for training of annual budget.
• To command the financial activities of the regime because all the revenues in addition to expenditures of regime are recorded according to the financial rules in addition to procedures.
• To forestall the mensurate of regime revenues in addition to its properties because at that spot is a to provision of audit of the books of account.
• To furnish for certain guidelines for training of finical statements.
• To ensure in addition to effective uses of the assist in addition to loan amount provided past times unusual donors in addition to agencies.
Limitation of novel accounting system
New accounting systems of HMG are besides non complimentary from weakness in addition to limitations. Some of the limitations are:
• There is no proper machinery to banking concern gibe frauds in addition to errors committed inwards the books of describe organisation human relationship in addition to besides if failed to command corruption, misuse in addition to embezzlement of regime cash in addition to properties.
• It has given less emphasis on goods, properties in addition to assets because it has given emphasis entirely on expenditures.
• It is based on cash footing of accounting. No tape is made on accruals basis.
• There are higher chances of misappropriation of stock (investment) due to the lack of systematic in addition to proper shop keeping system.
• It cannot furnish necessary information or information for making determination on the toll of production in addition to labor efficiency.
• It does non next the regulation of double entry scheme inwards practice. For example, entry for advance transaction required triple positing inn banking concern cash book.
• All the forms are designed past times the subdivision of full general produce non fulfill the requirement of managerial need.
Levels of novel accounting system
HMG's officers are divided into 2 levels i.e. fundamental aeroplane in addition to operating aeroplane nether novel accounting system.
Central aeroplane accounting
Central aeroplane accenting refers to the accounting maintained past times fundamental aeroplane offices. Those officers received budget conduct straightaway from the ministry building of financial in addition to unloose them to operating aeroplane officers. The ministry building of financial does non unloose budget conduct to operating aeroplane officer. They co-ordinate in addition to command the operating aeroplane officeholder idea the country. Ministries, subdivision in addition to the legal bodies come upwards nether come upwards nether fundamental aeroplane officers. The accounting. Under this accounting, the budget received from the ministry building of financial in addition to released to operating aeroplane officeholder inwards price of advance footing in addition to cleaning the advances every bit against their monthly reports are recorded. The next are only about major describe organisation human relationship maintained past times fundamental aeroplane offices.
a. Journal voucher
b. General ledger
c. Subsidiary books
d. Advance ledger
e. Bank statements
f. Statement of advance given
g. Control ledger for the amount deposited into consolidated fund etc.
Operating aeroplane accounting
Operating aeroplane officeholder refer to those regime branches or regional officeholder which received budget from fundamental aeroplane officeholder in addition to brand expenditure according to the prescribed budget heads. The accounting systems adopted past times operating aeroplane officeholder are known every bit operating aeroplane accounting. The operating officers are responsible for their respective fundamental officeholder in addition to accept to submit their disputation of expenditures to the concerned fundamental aeroplane officer. In shown operating level:
• Receives budget nether dissimilar heads.
• Incurs budget expenditure accounting to the budget teaching in addition to prescribed rules in addition to regulations.
• Creates records of budget received in addition to spent.
• Forward monthly study in addition to disputation to clear advance remaining inwards its name.
• Gets its accounts audited internally from the component subdivision of the treasury in addition to comptroller in addition to financial from the subdivision of audit general.
• Prepares budget guess for the side past times side financial year.
The next are the accounting documents maintained past times the operating aeroplane officers.
a. Journal voucher
b. Bank cash bank
c. Subsidiary ledger
d. Statement of expenditures.
Different betwixt fundamental aeroplane in addition to operating aeroplane accounting
Basis
- Office
- Accounts
- Recording
- Responsible
- Forms
- Helps
Central aeroplane accounting
- It is maintained past times fundamental aeroplane office.
- It is maintained both past times the fundamental every bit good every bit operating aeroplane accounts.
- It records budget received from ministry building of finance in addition to unloose made to operating aeroplane offices.
- Central aeroplane offices are responsible for the ministry building of finance in addition to reports are submitted to ministry building of finance.
- Under this scheme entirely a few break of accounting in addition to statements are used for making records.
- Central aeroplane officeholder helps the component subdivision of the comptrollers full general inwards preparing fundamental accounts.
Operating aeroplane accounting
- It is maintained past times operating aeroplane office
- It is maintained entirely past times operating aeroplane accounts.
- It keeps tape of budget received from concerned fundamental aeroplane offices in addition to the expenditure made on dissimilar heads.
- Operating aeroplane officers are responsible to the fundamental aeroplane officeholder in addition to reports are submitted to the concerned fundamental aeroplane officer.
- Under this scheme a large break of accounting forms are used for making accounting records.
- Operating aeroplane officeholder produce non conduct assist inwards the training of fundamental account.
Forms used inwards novel accounting system
The novel accounting scheme prescribes a break of forms to travel used at fundamental aeroplane every bit good every bit operating aeroplane officers. The next are only about shape inwards novel accounting system.
1. Primary books
a. Journal voucher
b. Cash receipts
c. Cash payment slip
2. ledger
a. budget sheet
b. bank cash book
c. cash receipts book
3. reports
a. statement of expenditures
b. monthly reports regarding revenue
c. requisition shape for the reimbursement of cash payment
d. monthly report of unclear advance
e. statement of banking concern account
f. summary of banking concern account
g. statement of budget sheet
h. statement of outstanding payments
i. monthly study of safety deposits
4. miscellaneous
a. cash payment sideslip in addition to cash receipts control
b. budget requisition form
The novel accounting scheme prescribes a break of forms to travel used at fundamental aeroplane every bit good every bit operating aeroplane officers. The next are only about shape inwards novel accounting system.
1. Primary books
a. Journal voucher
b. Cash receipts
c. Cash payment slip
2. ledger
a. budget sheet
b. bank cash book
c. cash receipts book
3. reports
a. statement of expenditures
b. monthly reports regarding revenue
c. requisition shape for the reimbursement of cash payment
d. monthly report of unclear advance
e. statement of banking concern account
f. summary of banking concern account
g. statement of budget sheet
h. statement of outstanding payments
i. monthly study of safety deposits
4. miscellaneous
a. cash payment sideslip in addition to cash receipts control
b. budget requisition form
0 Response to "What Is Novel Accounting Organization & Importance Of Novel Accounting System"
Post a Comment