Book keeping system in public sector

year of accounting 1st of January to 31st December

impresets limit should be settled by
expenditure or
accounting summaries or
cash
though private sector use accrual basic ,government sector use cash basic
(however advance accounts prepared base on accrued basic)
the national accounts are prepared by the treasury while department role is
reporting necessary information to treasury to prepare national accounts
The following books are prescribed for general use:
(i) Cash Book and /or Petty Cash Book;
(ii) Departmental Appropriation (Votes) Ledger (Form General 138);
(iii) Register of Cheques, Money Orders, etc., received. (Form G.A.M. 83);
(iv) Register of Counterfoil Books (Form G.A. - N20) - (See F.R. 341);
(v) Audit Query Register;
(vi) Inventory Book (Form General 44);
(vii) Catalogue of Books;
(viii) Register of Consumable Stores;
(ix) Personal Emoluments Register/s;
(x) W.&.O.P. Register;
(xi) P.S.P.F. Register

Department will however keep such other books of account as may be necessary
for their particular requirements.
The books of account of departments whose methods of accounting are laid down
in departmental codes or manuals, duly approved by the Treasury, will be kept in
accordance with the Rules prescribed therein.

Rules in department book keeping system

01) Receiving impresets from the treasury

Cash book
Treasury impresets ACC

DR
CR

Note
Although treasury impresets account should be credited
theoritically ,it is should be debited for reporting purpose

02) Department expenditure

Relevant vote leger (expenses acc )

DR

Cash book

CR

Note
Although Relevant vote leger (expenses acc )account should be
debited theoritically ,because of Treasury impresets ACC get
release same amount it should be creited Treasury impresets ACC
03) Revenue income
Cash book

DR

Relevant revenue acc

CR

When to record treasury

Treasury impresets ACC

DR

Relevant revenue acc

CR

04) Department deposit other receiving (received third party)

Cash book
General deposit acc

DR
CR

When to record treasury

Treasury impresets ACC
General deposit acc

DR
CR

05) Giving sub impresets (other than public officer advance account)
Since sub impresets given from main impresets, it is treated as
department internal records so it should not want to report to the treasury
06) Public officer advance account

Public officer advance acc

DR

Cash book

CR

Reporting to treasury

Public officer advance acc

DR

General deposit acc

CR

The department has to report to the treasury end of each month. for
this purpose they use the format of monthly account summary
the monthly account summary format as follows
ABC department account summary for the month of
Sub no

Description

Debit

01

Expenditure account (vote account)

xxxx

02

Refund from the revenue

xxxx

03

Revenue account

Xxxx

04

Surcharge account

Xxxx

05

Public officer advance acc

Xxxx

Credit

Xxxx

06

Treasury authorized advance a/c

Xxxx

Xxxx

07

General deposit a/c

Xxxx

Xxxx

08

Treasury impresets a/c

Xxxx

Xxxx

Xxxxx

xxxxx

Example 01

Following information are relevant to department of register generals for

the month of January 2013

Impresets receiving from the treasury RS 10 Mn

Recurrent expenditure of the month RS 3Mn
Capital expenditure of the month Rs 4Mn
Payment under public officer advance account 01Mn

Following revenue and cash inflows are received in January

disposal of fixed assets RS 1.5Mn
receiving deposit Rs 0.5Mn

You are required to prepare

Cash book of the department
Account summary for the month of January 2013

Example 02

Following information are relevant to department of agriculture for the

month of January 2013

1) impresets receiving from the treasury RS 10 Mn

2) department of register general had paid this department RS 0.2Mn
for carried out their work
3) following expenditure relevant to month of January
Salaries and wages

80Mn

Stationaries

10Mn

Over time payments

5Mn

Travelling claims

1.5Mn

Installation of computer network

06Mn

Construction of buildings

30Mn

Purchasing of motor vehicle

40Mn

Office tools

05Mn

Payment under public officer advance account 20Mn

4) following sub impresets are issued during the month

Person
A
B
C
D

Purpose
ad hoc
Stores
Petty cash
Foreign traveling

Amount (Rs)
20,000
200,000
7,500
500,000

5) summaries of salaries and wages as follows

5

Basic salaries

68Mn

Cost of living allowance

10Mn

Other allowance

02Mn

Gross salary

80Mn

Deductions
W. & O.P

1.2Mn

Public officer advance

7.8Mn

Public officer advance interest 1.5Mn

Housing rents

0.5Mn

Total deduction

11Mn

Net salary

69Mn

Summary of the cheque payments

Shorff of the department

64Mn

Peoples bank

02Mn

Bank of Ceylon
National saving bank

02Mn
01Mn
69Mn

6) during the month following revenue and cash inflows were earned
by the department

disposal of fixed assets 1.8Mn

sales of old materials
1.2Mn
receiving deposit
3 Mn

7) during the month sub impresets were settled as follows

Mr. A

Mr. D

By cash

2,000

By bills

18,000
20,000

6,000
494,000
500,000

You are required to prepare

1) record above transaction in the department cash book
2) prepare monthly summary of January 2013
3) treasury authorized impresets account

Calculating treasury impresets debit balance in monthly

summary
this is consist all receiving and cash revenue collected by the
department but not send to the treasury up to now. It calculate as
follows

Total receiving (total debit amount of cash book)

xxxx

(-) impresets received from the treasury

(xxxx)

(-) debit cross entries

(xxxx)

(-) settlement amount of sub impresets

(xxxx)
xxxx

Calculating treasury impresets credit balance in monthly

summary
7

Total receiving (total debit amount of cash book)

(-) closing balance of cash book

xxxx
(xxxx)

Total payments

xxxx

(-) credit cross entries

(xxxx)

(-) amount of issued sub impresets

(xxxx)
xxxx

(+) cross entries for settled sub impresets

xxxx

xxxxx

example 01

registrar generals department cash book January 2013

Da

Description

Cas

Cross

Total

Description

Cas

Cross Total
8

te

entri
es

treasury impresets account

public officer advance account

at
e

entri
es

General deposit account

Revenue account

vote (expenses) account

registrar generals department account summary for the month of

january 2013
Sub no

Description

01

Expenditure account (vote account)

02

Refund from the revenue

03

Revenue account

04

Surcharge account

05

Public officer advance acc

06

Treasury authorized advance a/c

07

General deposit a/c

08

Treasury impresets a/c

Debit

Credit

example 02

department of agriculture cash book January 2013

10

Dat
e

Description

Cas
h

Cross
entries

Total

Impressed
G/O(Agricultur
e)
W&op
advance

50
0
2

500
2
2

D
a
t
e

Description

Cash

Cross
entries

Total

office
congumabl

20

20

W & OP
advance

treasury impresets account

general deposit account

11

public officer advance account

Cash 40

Salaries 10

Revenue account
W&OP
Intrest
Honce
Rent
Disposal F/A
OLd Matirials

2
3
3
3
8
5
21

vote (expence) account

Salaries
Office Conshbls
O.T
Travling
Off- Equipment
Moter Vehicle
Off- tools
Off-Tools
A
D

Mr.A
Cash 0.02

200
20
6
3.5
5
30
4
4
0.014
0.48

Bills 0.014
Cash 0.006

Mr B
Cash 0.2
Mr.C
Cash 0.0075

Mr.D
Cash 0.5

Bills 0.48
Cash 0.02

12

department of agriculture account summary for the month of january

2013
Sub no

Description

Debit

Credit

01

Expenditure account (vote account)

268.999

02

Refund from the revenue

03

Revenue account

04

Surcharge account

05

Public officer advance acc

40

10

06

Treasury authorized advance a/c

07

General deposit a/c

08

Treasury impresets a/c

21

5
18

290.994

376.999

326.994

Calculating treasury impresets debit balance in monthly

summary

Total receiving (total debit amount of cash book)

(-) impresets received from the treasury
(-) debit cross entries

536.52
(500)

(18.49)

(-) settlement amount of sub impresets by cash (0.026)

13

18

Calculating treasury impresets credit balance in monthly

summary

Total receiving (total debit amount of cash book)

(-) closing balance of cash book
Total payments

536.52
(226.7985)

309.7215

(-) credit cross entries

(18.494)

(-) amount of issued sub impresets

(0.7275)

(+) cross entries for settled sub impresets

0.494
290.991

14

15