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Parts and Closing of Budget Sheet and Ledger Accounts

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Parts of Budget Sheet

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below:

  1. Annual appropriation part
    It is the first part of a budget sheet which is placed at the top of the sheet. It shows the total amount allocated under different budget heads & subheads which are approved for the fiscal year. This part is filled up with the help of approval letter provided by the central level office. It determines the maximum limit of the budget to be sent by the operating level offices. It shows the inter-heads transfer of budget. Journal voucher is not necessary to fill this part.

  2. Budget release part
    It is the second part of the budget sheet which lies just below the annual budget appropriation. It is made out of annual appropriation. It shows the total amount of budget release received from the central level office. It shows the amount of budget release in each head & subheads of budget expenditures. It is prepared on the basis of journal voucher.

  3. Budget expenditure part
    It is the third part of the budget sheet. It shows the budget expenditures made by offices under different budget heads & subheads. The transactions, which do not affect the budget heads, are not required to post in this section. It also keeps the record of advance given & cleared transactions. The petty cash expenses are recorded at the time of reimbursement. It is prepared on the basis of journal voucher.

Closing of Budget Sheet

The budget sheet is closed monthly as well as annually. It is closed to report about the budget release and expenditure till the date.

  • Monthly Closing
    Al the end of each month, the budget sheet is closed. The process of obtaining the total budget release and expenditures up to the month is called monthly closing. The monthly closing determines the amount of total budget release and total budget expenditures of the month as well as up to the month. In order to close the budget sheet, firstly the total of the month is obtained. Finally, the total up to the previous month is added to the total of the month to obtain the total release and expenditures up to the month.

  • Yearly Closing
    The budget sheet is closed at the end of each fiscal year, which is known as yearly closing. It closes the total amount of budget expenditures and a total amount of budget release. Yearly closing is the process of equalizing the total budget release with the total budget expenditures during the fiscal year. The yearly closing is made by preparing closing voucher.

Ledger Accounts

A ledger is a book that records similar nature of transactions in one place to find out the total result of related transactions. It is an account that maintains separate records of each item other than budgetary accounts. The following types of accounts are required to maintain by operating level offices of the Nepalese government:

  • Imprest fund release account
  • Petty cash fund account
  • Provident fund, income tax and staff loan account
  • Budget release account
  • Loan and deposit account
  • Inter-office loan account
  • Contractor's deposit account



  • Annual appropriation part shows the total amount allocated under different budget heads & subheads which are approved for the fiscal year. 
  • Budget release part shows the total amount of budget release received from the central level office. It shows the amount of budget release in each head & subheads of budget expenditures. 
  • A budget sheet is a budgetary account to be prepared by operating level government offices. 
  • The process of obtaining the total budget release and expenditures up to the month is called monthly closing.
  • The budget sheet is closed at the end of each fiscal year, which is known as yearly closing. 
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Very Short Questions

Annual appropriation partis the first part of a budget sheet which is placed at the top of the sheet. It shows the total amount allocated under different budget heads & subheads which are approved for the fiscal year. This part is filled up with the help of approval letter provided by the central level office. It determines the maximum limit of the budget to be sent by the operating level offices. It shows the inter-heads transfer of budget. Journal voucher is not necessary to fill this part.

Budget releaseis the second part of the budget sheet which lies just below the annual budget appropriation. It is made out of annual appropriation. It shows the total amount of budget release received from the central level office. It shows the amount of budget release in each head & subheads of budget expenditures. It is prepared on the basis of journal voucher.

Budget expenditure partis the third part of the budget sheet. It shows the budget expenditures made by offices under different budget heads & subheads. The transactions, which do not affect the budget heads, are not required to post in this section. It also keeps the record of advance given & cleared transactions. The petty cash expenses are recorded at the time of reimbursement. It is prepared on the basis of journal voucher.

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  • A budget sheet is prepared on the basis of ______.

    journal voucher
    final account
    petty cash book
    bank cash book
  • The transactions, which do not affect the budget expenditures, are not recorded in ______.

    annual appropriation part
    budget expenditure part
    budget release part
    balance of budget
  • The second part of the budget sheet records the amount of ______.

    budget release


    additional imprest fund release


    all the options are correct


    imprest fund release


  • The budget sheet is closed at the end of each fiscal year, which is known as ______.

    yearly closing
    weekly closing
    daily closing
    monthly closing
  • The process of obtaining the total budget release and expenditures up to the month is called _______.

    weekly closing


    yearly closing


    monthly closing


    annual closing


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