Notes on Statement of Expenditure | other > Other > Statement of Expenditure | KULLABS.COM

Statement of Expenditure

  • Note
  • Things to remember
  • Exercise
  • Quiz

Statement of expenditure is a multi-column self-balancing monthly statement of expenditures of an operating level office. It is prepared to the concerned central level office at the end of every month as a monthly report. Therefore, it is also called monthly expenditure report.

The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure. It is one of the main monthly statement designed to submit the statement of expenditure to the concerned Central Level Office within the first 7 days of the month under the present system. On the basis of the expenditure statement budget for the next month is estimated and released to the operating level offices. This statement of expenditure shows the progress of the operating level offices. It is known as AGF No. 13, which shows the expenditure, the total amount of appropriation, amount of budget release and balance of budget under the various heads.

.

Importance

The following are the importance of statement of expenditure:

  • It helps to evaluate the progress of operating level offices.
  • It provides necessary information to the central level offices for controlling budget expenditure.
  • It provides information to the office of the treasury nad comptroller for making a decision on budget release and revolving fund.
  • It provides information for making a future budget of operating level offices.

Divisions of Statement of Expenditure

The statement of expenditure has two divisions:

  • Division showing the position of budget
    The first part of the statement of expenditure shows the position of the budget. This part shows the annual appropriation of the budget, budget release, budget expenditure and budget balance on different budget heads and subheads.

    S.N

    Column

    Explanation

    1.

    Expenditure of the current month

    In this column, the amount of the budget expenditure incurred under different budget heads for the current month is mentioned.

    2.

    Release up to the end of the current month

    It records the cumulative budget release received on different budget heads up to the end of current month.

    3.

    Budget Head No.

    It records the budget head number of related expenditure.

    4.

    Budget Head

    It records the name of the related budget head.

    5.

    Annual Appropriation

    The amount of annual appropriation of each budget head is mentioned.

    6.

    Expenditure up to the end of the current month

    This column is used to record the amount of total expenditure made up to the current month.

    7.

    Balance of budget

    This column records the balancing amount of each budget head.



  • Division showing the position of fund
    The second part of the statement of expenditure shows the position of bank balance and cash balance. This part also shows the amount of budget release, the total amount of budget expenditure, the uncleared amount of advance and position of the loan.
    The position of fund shows the following components:
    • Total budget release up to the current month
      It is the amount, which is concerned with the budget received up to the current month from central level offices. It is calculated by using the following formula:
      Total budget release up to current month = Total expenditure up to current month + Bank balance + Cash balance + Loan provided -Loan received

    • Annual expenditure
      It is the amount, which the amount which is concerned with the amount of expenditure after deducting unsettled advance.

    • Bank balance
      Bank balance is an amount of balance at the bank at the ending date of the statement. It is calculated in the following way:
      Bank balance = Total budget released up to the current month + Loan received - Total expenditure up to the current month-Cash balance -Loan provided

    • Cash balance
      Cash balance is an amount of balance of cash at the ending date of the statement. It is calculated in the following ways:
      Cash balance = Total budget release up to the current month + Loan received - Total expenditure up to the current month -Bank balance -Loan provided

Statement of Outstanding Advance (AGF no. 14)

The monthly statement which discloses the information of unclear advance is called statement of outstanding advance. It provides information about an unclear amount of advance, the name of the party receiving advance and reasons for unclearing advance. It is prepared and submitted to the Central Level Offices along with Expenditure Statement. This statement of expenditure shows the actual financial position of the office. It is known as AGF No. 14, which shows the detail information of advance like date of advance given, name of the person or party receiving the advance, the amount of advance, objectives of advance, reasons for not clearance of advance etc.

Bank Reconciliation Statement

All the government transactions are done through the bank. All the collection are deposited into the bank and all the payments are made through the bank. Bank provides a Bank pass book and Bank Cash Book is also maintained by the office. Generally, the balance as per pass book and as per bank cash book should be the same, but usually, the two balances do not agree. Therefore, to find out the reasons of difference in the balances in these two books of accounts, a statement is prepared which is known as bank reconciliation statement. Hence, bank reconciliation statement refers to the statement prepared by operating level office to reconcile the balance of bank cash book or passbook. It is known as AGF No. 15.



  • The monthly statement which is prepared to disclose the position of budget & position of the fund is known as the statement of expenditure. 
  • All the government transactions are done through the bank. All the collection are deposited into the bank and all the payments are made through the bank. 
  • The monthly statement which discloses the information of unclear advance is called statement of outstanding advance.
.

Very Short Questions

Solution:

Expenditure for the month of Falgun

Release upto the end of Falgun

Budget Head No.

Budget Heads

Annual Appropriation Budget

Expenditure upto the end of Falgun

Balance of budget

12,500

87,500

21111

Salary

1,50,000

1,00,000

50,000

5,000

35,000

21112

Allowance

60,000

40,000

20,000

2,500

17,500

22111

Water and electricity

30,000

20,000

10,000

4,000

26,000

22121

Rent

45,000

30,000

15,000

2,000

14,000

22211

Fuel

24,000

16,000

8,000

-

40,000

29511

Machinery

50,000

40,000

10,000

26,000

2,20,000

3,59,000

2,46,000

1,13,000

40,000

Revolving fund balance

26,000

2,60,000

Total

3,59,000

2,46,000

1,13,000

Total release upto Falgun Rs. 2,60,000

Bank Balance Rs. 13,500

Total expenditure upto Falgun Rs. 2,46,000

Cash Balance Rs. 500

Net Expenditure Rs. 14,000

Total Balance Rs. 14,000

Uncleared advance Rs. 1,000

Loans payable Nil

Actual expenditure Rs. 2,45,000

Loans receivable Nil

Submitted by: Mr. XYZ

Post: Accountant

Date:

Approved by: Mr. ABC

Post: Office Head

Date:

Working note:

Bank balance = Total release – Total expenditure – Cash balance

= Rs. (2,60,000-2,46,000-500)

= Rs.13,500

Solution:

Expenditure for the month of Magh

Release upto the end of Magh

Budget Head No.

Budget Heads

Annual Appropriation Budget

Expenditure upto the end of Magh

Balance of budget

38,000

1,30,000

21111

Salary

4,00,000

1,68,000

2,32,000

5,000

25,000

22111

Water and electricity

80,000

30,000

50,000

10,000

30,000

22311

Office material

90,000

40,000

50,000

5,000

20,000

22211

Fuel

60,000

25,000

35,000

25,0000

-

29311

Furniture

50,000

25,000

25,000

83,000

2,05,000

6,80,000

2,88,000

3,92,000

1,35,000

Revolving fund balance

83,000

3,40,000

6,80,000

2,88,000

3,92,000

Total release upto Magh Rs. 3,40,000

Bank Balance Rs.51,000

Total expenditure upto Magh Rs.2,88,000

Cash Balance Rs.1,000

Net expenditure Rs. 52,000

Total Balance Rs.52,000

Uncleared advance Rs.10,000

Loans payable Nil

Actual expenditure Rs.2,78,000

Loans receivable Nil

Submitted by: Mr. XYZ

Post: Accountant

Date:

Approved by: Mr. ABC

Post: Office Head

Date:

Working note:

Bank balance = Total release – Total expenditure – Cash balance

= Rs.(3,40,000-2,88,000-1,000)

= Rs.51,000

Solution:

Expenditure for the month of Aswin

Release upto the end of Aswin

Budget Head No.

Budget Heads

Annual Appropriation Budget

Expenditure upto the end of Aswin

Balance of budget

63,000

66,000

21111

Salary

4,26,000

1,29,000

2,97,000

2,000

4,000

21112

Allowance

24,000

6,000

18,000

4,000

8,000

22311

Office materials

40,000

12,000

28,000

10,000

16,000

22711

Miscellaneous expenses

60,000

26,000

34,000

-

-

22911

Contingencies-regular

8,000

-

8,000

8,000

20,000

29311

Furniture

48,000

28,000

20,000

87,000

1,14,000

6,06,000

2,01,000

4,05,000

1,01,000

Revolving fund balance

87,000

2,15,000

Total

6,06,000

2,01,000

4,05,000

Total release upto Aswin Rs. 2,15,000

Bank Balance Rs.13,000

Total expenditure upto Aswin Rs.2,01,000

Cash Balance Rs.1,000

Net expenditure: Rs.14,000

Total Balance Rs.14,000

Uncleared advance Rs.8,000

Loans payable Nil

Actual expenditure Rs.1,93,000

Loans receivable Nil

Submitted by: Mr. XYZ

Post: Accountant

Date:

Approved by: Mr. ABC

Post: Office Head

Date:

0%
  • The monthly statement which is prepared to disclose the position of budget & position of the fund is known as ______.

    statement of revenue
    statement of expenditure
    bank reconciliation statement
    statement of outstanding advance
  • The monthly statement is prepared under the AGF No. ______.

    10
    13
    9
    19
  • Which one of them is the objective of the Statement of Expenditure?

    To provide information for estimating budget
    To evaluate the progress of operating level offices.
    To provide necessary information to the central level office for controlling budget expenditure.
    All the options are correct
  • What is the full form of AGF?

    Auditor Governmental Form
    Advanced Governmental Flow
    Auditor General Form
    Annual General Flow
  • The first part of the statement of expenditure shows the ______.

    annual appropriation of the budget
    budget release
    budget expenditure
    all the options are correct
  • Statement of outstanding advance is prepared under the prescribed format of ______.

    AGF no. 10


    AGF no. 14


    AGF no. 9


    AGF no. 13


  • A statement prepared by government offices, which records the revenues collected from different sources is called ______.

    None of the answers are correct


    Annual Budget


    Statement of security deposit


    Statement of government revenue


  • Statement of security deposit is prescribed format of ______.

    AGF no. 9


    AGF no. 19


    AGF no. 09


    AGF no. 91


  • The monthly statement which discloses the information of unclear advance is called the ______.

    statement of expenditure


    statement of government revenue


    statement of outstanding advance


    statement of security deposit


  • A statement to be prepared by government office to disclose the information about receipt of security deposit & other details. It provides the information about the security deposit of a particular month as well as the net amount of security deposit is called ______.

    statement of outstanding advance


    statement of expenditure


    statement of government revenue


    statement of security deposit


  • Bank reconciliation statement is prepared under ______.

    AGF no. 9
    AGF no. 14
    AGF no. 15
    AGF no. 05
  • The statement prepared by operating level office to reconcile the balance of bank cash book or pass book is known as ______.

    budget sheet
    bank reconciliation statement
    balance sheet
    trial balance
  • All the government transactions are done through ______.

    Office of the Treasury and Comptroller General
    bank
    Ministry of Finance
    cash
  • Bank reconciliation statement is also known as ______.

    AGF no. 14
    AGF no. 15
    AGF no. 9
    AGF no. 05
  • Which one of them is the objective of bank reconciliation statement?

    All the options are correct
    To report the reasons of differences in the balances between the bank statement and bank cash book.
    To compare the entries made in the bank cash book and the bank statement to ensure the accuracy of the record of banking transactions.
    To report the balances of the bank statement and the bank cash book on a given date.
  • You scored /15


    Take test again

ASK ANY QUESTION ON Statement of Expenditure

No discussion on this note yet. Be first to comment on this note