Accountancy

The two types of filing are:

a) Alphabetic filing

b) Numeric filing

The two types of life insurance are:

a) Whole life insurance

b) Term life insurance

The full form of PAN is “Permanent Account Number”.

Prepaid salaries is recorded in Assets side of balance sheet as current assets.

The two basis of government accounting are:

a) Constitutional base

b) Base of Principle

Revenue accounting process incorporates the record of all government revenue. Government collect its revenue from tax revenue and non-tax revenue.

The two example of office store accounting are:

a) Indicates the value of closing stock.

b) Convenient means of stock control by value.

Dr, Individual retention Account

Cr, Treasury and Comptroller- Retention Account

(Being forfeited retention amount deposited it the reserves fund)

The fund of revenue that is supposed to be divisible among the three government namely federal, state and local government is called the divisible fund. This fund is created to divide the fund raised through VAT and Excise duty. 

The supreme body to conduct final audit of government office is “Office of the Auditor General”.

The two disadvantage of ICT system are:

a) Security Threats                            b) Operational Disruption

The five considerations while preparing Tippani are:

a) Specify subject

b) Present orderly

c) Suggestion and recommendation

d) Supported by document

e) State past decision and action

f) Signed by authority

a) Specify subject: The subject or the topic of tappani should be clearly mentioned.

b) Present subject: It should clearly state the related facts information rules and regulations regarding the subject in and orderly manners.

c) Suggestion and recommendation: It should include all the suggestions opinions and recommendations of the concerned authorities.

d) Supported by document: It should be supported by the necessary documents for evidences.

e) State past decision and action: It should clearly state the past decisions and actions on the cases having similar nature and subject.

f) Signed by authority: Each page of a TAPPANI should be duly signed by the concerned authority before submitting to the upper level.

A direct tax is a form of tax paid by a person on whom it is legally imposed. It is collected directly by government from the person who bears the tax burden. For example vehicles tax, property tax etc.

An indirect tax is form of tax imposed on one person but partly or wholly paid by another person. It is collected by mediators who transfer the tax to the government and also perform functions associated with filing tax returns. For example VAT, Excise duty etc.

The four objectives of tax are:

a) To raise revenue: The fundamental objectives of taxation is to finance government current and capital expenditure. For this it need a huge amount of resources. The government collect resources by imposing tax.

b) To regulate the economy: The government not only raise public revenue through tax but also imposes restrictions on the use of certain goods or services. The government can impose excise duty on Tabaco and liquor to restrict the consumption of harmful goods.

c) To prevent concentration of wealth: Tax is imposed on person according to their income level. High earners are generally taxed at higher rate through progressive tax system. This prevents wealth from being concentrated in a few hands of the rich.

d) To redistribute wealth for the common goods: Tax collected by government is spent for carrying out varies welfare activities for the common people. Tax is collected from the rich and then redistributed to the whole community. Tax has been a major social tools to reduce in equality in the county.

Bank reconciliation statement

As on ……………………..

Rectification entries

The difference between government and business accounting are:

Consolidated fund is the fund of government that shows the budgetary position. It is created at all three levels of government, i.e. Central, provincial and local government. It is also called the reserves fund of the government of Nepal. Under the central reserve account. Revenue account, budget expenditure account and reserves fund reconciliation account are created in banking offices of Nepal Rastra Bank which are operated by financial comptroller office. Revenue donation and miscellaneous accounts can also be opened in the designated commercial banks. It is operated by financial controller office, office of Treasury and comptroller or the concerned offices.

Consolidated funds are used for the expenses which are not required to be approved by the federal parliament. Some expenses from reserve funds are required to be approved by the parliament.

Types of consolidated fund

a) Federal consolidated fund: Except for the revenue of trusts, all revenues received by the government of Nepal, all loans raised on the security of revenue, all amounts received in repayment of any loans made under the authority of any Act and any other money received by the government of Nepal are deposited into federal consolidated fund.

b)  State consolidated fund: Except for the revenues of trusts, all revenues received by the state government, all loans raised on security of revenues, all moneys received in repayment of any loans made under the authority of any state Act and any amounts of grants or loans received from the government of Nepal are deposited into state consolidated fund.

c) Local consolidated fund: All revenues received by the municipality, any amount of grants received from government of Nepal and provincial government, all loans raised by the municipality, and amount received from other sources are deposited into the local consolidated fund.

A database is a systematic collection of data that is organized and stored in a way that allows for efficient retrieval, management and utilization of information. It is an essential component of modern offices. It is often used in business operations as well as scientific research. A database is usually operated and controlled by a database management system.

The any four uses of IT in business accounting are:

a) Cloud computing system: Cloud computing system is used to store and access financial data through remote servers. It power real time collaboration, data backup, and accessibility. I additional cloud computing offers scalability, allowing, business to expend their computing resources during busy seasons.

b) Block chain technology: This system is used for secure and transparent recording of financial transactions. Ethereum, hyper ledger fabric and ripple are some example of block chain technologies.

c) Enterprise resource planning: It facilitates all in one communication between different departments of an organization. It can be used to integrate financial data and keep the highest level of accuracy across the entire organization.

d) Data gathering tools: Accountants work with many clients. They have to gather lots of information and documents. Data gathering tools make this process much simpler by providing tailored document collection templates and automated reminders.

The terms bank is generally used to refer to a commercial bank. It is a financial institution dealing in money. It accepts deposits of money from the public and organization and keeps them safely. Is los deals in credit by making loans and advance to needy people and organizations. It also involves in agency functions on behalf of the people. It also deals with foreign currency exchange. A commercial bank operates its activities to earn profit. In Nepal commercial bank are enforced by Nepal Rastra Bank to lend to priority and deprive sector. Nepal Bank limited was the first commercial bank in Nepal, which was established in 1994 B.S. There are total 20 commercial bank in Nepal.

The fives function of commercial bank are:

a) Acceptance of deposit: Commercial bank accept deposits from people and organization by offering various kinds of deposit accounts such as saving account, Current accounting and fixed deposit account.

b) Financing foreign trade: Commercial bank provide loan and letter of credit facilitate for foreign trade. They issue guarantee on behalf of local trader in foreign trade and work as the referee with respect to financial status of the clients, whenever needed.

c) Creation of credit: Commercial bank create credit by advancing loan and purchasing securities. They advance loan out of deposits accepted from public. However, they should maintain certain reserve out of deposit and can lend the remaining.

d) Remittance of funds and dealing with foreign exchange:  Commercial bank facilitate the remittances from foreign countries, help in transferring funds and deal with foreign exchanges as permitted by the central bank.

e) Agency services: Commercial bank provide agency service to the business and people by working as agent of them in many cases. They involves in collection of cheque and receipt in terms of interest and dividend from other organization, payment of bills and discount bills of exchange and promissory notes on behalf of clients. They play an intermediary role in the purchase and sale of securities in primary market. 

Trading account

as on 31^st Chaitra 2081

Profit and loss account

as on 31^st Chaitra 2081

Balance sheet

as on 31^st Chaitra 2081

Ans A:

Journal Voucher