INTRODUCTION :
Government is the responsible and accountable towards the people of the state. It has to keep the
record of all types of day by day financial transactions when such transactions take place. It is
concerned with the process of collecting, recording, analyzing and communicating the
information relating to government revenue and expenditures.
Government accounting is maintained by the government of Nepal in all the government offices
including ministries, departments, operating level offices and other government related bodies of
the country. It systematically and scientifically records the income and expenditures of all
government offices. It collects such information and helps to run financial administration,
prepare financial statements and control over budget. It also helps for formulation of plan and
policies for the effective implementation of the government project and programs.
Thus, it can be concluded that the government accounting is the process of recording, analyzing,
classifying and communicating the information of government offices relating to governmental
revenue and expenditures. It reflects the position of government by disclosing information about
receipts, transfer and disposition of public fund or property.
FEATURES OF GOVERNMENT ACCOUNTING:
Following are the main features of government accounting are
as follows:
a. Based on double entry concept:
Government accounting is part of accounting that maintains
the systematic and scientific record of government financial
transactions. It also assumes that every financial
transactions affect two sides i.e.; debit and credit and the
transactions are recorded considering dual effect.
b. Based on budget:
Budget is the estimated income and expenditure in
government offices for the coming fiscal year. All the
financial transactions of the government offices are recorded
and classified with in the limitation of budget.
c. Based financial act, rules and regulation:
The process of collecting, recording and analyzing the
financial transaction of government offices is affected
by financial acts, rules and regulations. It follows the
government rules and provisions are declared.
d. Provision of auditing:
Under government accounting, a constitutional body i.e.
office of Auditor General performs the function of auditing.
OBJECTIVE OF GOVERNMENT ACCOUNTING:
The main objectives of the government accounting are
given below:
a. Recording financial transactions:
In government accounting, financial transaction is
recorded. These transactions are related to revenues and
expenditures of government organizations.
b. Avoiding the excess expenditures:
Government offices cannot make expenditures annual
budget expenditures are approved by the government.
c. Budget head:
Government office makes expenditures according to
budget head. They follow appropriate act, rules and legal
provisions of the government.
d. Providing financial data:
Government offices provide reliable financial data and
information. These data are about the operation of public
fund.
e. Information:
Related data users can use different types of information
provided by government offices. Ministry of finance
provides historical financial data of government revenues
and expenditure.
HISTORY OF GOVERNMENT ACCOUNTING:
After the beginning of the unification of Nepal in 1825 B.S. It is believed that a memorandum
record of government revenues and expenditures, as an accounting system began to maintain
records . In this regard, two books called Laldhadda and Mothdhadda were introduced in the
years 1871 and 1879 B.S. respectively.
Government accounting in Nepal can be traced back to the Lichhavi period. It was first
introduced in Nepal in Lichhavi period to record the revenues and expenditures of the
government. In Lichhavi period, there was certain for accounting to record financial
transactions.
Government accounting's history can be traced back thousands of years to the cradle of
civilization in Mesopotamia and is said to have developed alongside writing, counting and
money. The early Egyptians and Babylonians created auditing systems, while the Romans
collated detailed financial information.
The system on which expenditures and revenues were recorded on the same leaf along with
their total and balances is called Syaha Sresta Pranali. It was introduced in the process of
historical development of the government accounting system. It was propounded by
KharidarGunawanta in 1936 BS.
The history of accounting throws light on economic and business history generally, and may help
us better predict what is on the horizon as the pace of global business evolution escalates.
Governmental accounting has evolved formally for many years. The Governmental Finance
Officers Association (GFOA) was founded in 1906 to actively support the advancement of
governmental accounting, auditing and financial reporting.
ACKNOWLEDGEMENT
I put effort into this project. However, with the kind support and
assistance of many people, it would not have been feasible. I
want to express sincere gratitude to each and every one of them.
I owe a huge debt of gratitude to Mr. Prakash Oli, the subject
instructor for his direction, on going monitoring, and provision
of the knowledge. I needed to complete the assignment. I would
like to thank my friend and my coworkers for their wonderful
support and cooperation, which helped me finish this project
work.
I want to convey my sincere appreciation and thanks to Mr.
Parkash Oli who gave me the opportunity to work in this project
“ History of Government Accounting’’ and whole school
administration for taking the time to pay me such close
attention. Without them, I would never have completed this task.
Thanks a lot
Name :
DECLARATION
This project is completely done under observation of History
of Government Accounting and submitted as account project of
10 class of Gorkha Model Secondary School (GMSS) is an
authentic record of our genuine work done under guidance from
Mr. Prakash Oli.
Signature:
Name:
Table of contents
1. Title page
2. Declaration
3. Acknowledgement
4. Introduction
5. Features
6. Objectives
7. Methodology
8. History of Government Accounting
9. Conclusion
[Link]
Conclusion
In conclusion, fundamental to the development of accrual
accounting in developing countries is the ability to identify
and measure the government's assets and liabilities.
Corruption tends to result in the understatement of
government's assets or the overstatement of government's
liabilities.
HISTORY OF GOVERNMENT ACCOUNTING
BY
Name of student:
Exam Roll no:
Gorkha Model Secondary School
Submitted to:
Secondary level Department
(GMSS)
Submitted by:
Name of student:
REFERENCES
1. Book
2. Google
3. Web site:
METHOLOGY
Governmental accounting transactions and events are recognized
on either the accrual basis or the modified accrual basis. The
accrual basis recognizes revenue when it's earned and available.
The modified accrual basis recognizes revenue when it's
available and measurable.
The two main accounting methods are cash accounting and
accrual accounting. Cash accounting records revenues and
expenses when they are received and paid. Accrual accounting
records revenues and expenses when they occur. Generally
accepted accounting principles (GAAP) requires accrual
accounting.