The new government accounting system is based on double entry system as it records every financial transaction of the government giving double effect in the books of accounts. It has classified the government offices into the central level and operating level. All the revenues and expenditures are made through the bank. This system keeps the records of financial transactions of government offices according to budget heads. New accounting system maintains uniformity in recording and preparing the financial statements of financial transactions in all the government offices.
The objectives of new accounting system are as follows:
The new accounting system keeps the records of the books of accounts and prepares different statements and reports. It keeps systematic records of government transactions.
The annual budget is prepared under new accounting system for which the government needs historical and estimated financial data. So, the new accounting system provides historical financial data and information for the new budget.
The new accounting system safeguards the properties owned by the government i.e. land, building, furniture, vehicle and so on by making systematic records of them and fixes accountability to different employees for acquiring, utilizing and maintaining such properties.
The new accounting system helps to locate the expenditure if it crosses the budgetary limits. Therefore, government office cannot make expenditures in excess of budgetary allocations. Thus, the new accounting helps to make the budgetary control.
The new accounting systems prepare all the records and books of accounts in a manner to facilitate the economical audit of the government offices.
Some of the limitation of new accounting system are:
Sharma, Narendra et.al., Principles of Accounting-XI, Bundipuran Prakashan, Kathmandu
Koirala, Yadav Raj et.al., Principles of Accounting-XI, Asmita Books Publication, Kathmandu
Shrestha, Dasharaha et.al., Accountancy-XI, M.K. Prakashan Kathmandu
Concept of New accounting system
Importance of new accounting system
Limitations of new accounting system