Journal Voucher for Advance Transactions

Advance refers to the amount which is paid before procuring or receiving goods and services. A Journal voucher meant for recording advance expenditure is known as a journal voucher for advance. The amount of advance given is not a real expenditure. So, it is should be cleared on the submission of necessary bills and vouchers. In case, of an advance transaction, a journal voucher is prepared twice once while giving advance and next while clearing advance.

Journal voucher while giving advances:

Sometimes, advances are inevitable to ensure smooth functioning of the office when an advance is given journal voucher is prepared by debiting the name of the person or firm receiving it along with the purpose of such advance and crediting Nepal Rastra Bank. But, since the advance given for the purpose is not real expenditure, the word “BE” is not written for such advance.

Format (Entry)

Dr. Name and designation of receiver Advance for budget head         …...... Cr N.R. Bank                                                                                                     …….. (Being advance given to......for the purchase of.....)

Example 

On 10^th Kartik 2070, Kharidar Manan Bhandari is issued a cheque of Rs. 16,000 as advance for his official tour to Birgunj.

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/10

Journal voucher for Advance Clearance

Advance is given to the person or party for a specific purpose. The person or party taking advance had to submit the necessary bills voucher and invoice for the clearance of advance after the conference of work. Sometimes, the amount spent on the specific purpose may not match with each other. If the amount of advance is less than real expenditure then the concerned office needs to pay such extra amount to the staff or concerned party. On the other hand, if the advance is more than real expenditure then it should be returned to the office.

Expenses are equal to the advance amount

In some cases, in the process of performing the work, there is the possibility of expenditures being equal to the amount of advance given. In such a situation, the person of expenditures along with source documents equal to the amount of advance paid.

Format 

Dr. B.E. (Name of budget head)                                                        ...... Cr Name (post) advance clearance                                                          ...... (Being advance cleared by name(post) on the submission of the bill)

Example 

On 15^th Kartik, 2070 Kharidar Mr. Manan Bhandari cleared his program office tour to an advance of Rs. 16,000 on the submission of the expenditure bill for the same amount.

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

Expenses are more than the advance amount

Sometimes, a person might spend more than the amount of advance received. In such a situation; The person taking advance submits the necessary bills and the office pays the excess amount of expenditure by a cheque.

Format for expenses are more than the advance In

Dr. B.E. (Name of budget head)                        ...... Cr Name (post) clearance of advance                                ...... Cr NRB.                                                                                    ...... (Being advance cleared by name (post) and issued a cheque for exceed amount)

 Example 

On 15^th Karthik, 2070 Mr. Manan Bhandari cleared his program office tour to advance of Rs. 16,000 on the submission of expenditure bill of Rs. 17,000 and issued a cheque for the excess amount.

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

Expenses are less than the advance amount

Sometimes, there is also a possibility of expenditure s being less than the amount of advance given. In such a situation, the person or party receiving the advance submits the necessary bills and refunds the surplus amount to the concerned officers to deposit into Nepal Rastra Bank.

Format 

Dr. B.E. ( Name of budget head)                                               ...... Cr Nepal Rastra Bank (Surplus amount)                                   ...... Cr Name (post) clearance of advance                                       ...... (Being advance cleared by name submitting necessary bills and bank voucher)

 Example

On 15^th Kartik, 2070 Kharidar Manan Bhandari cleared his program Travel expenses advance of Rs. 16,000 by submitting the expenditure bill of 10,000 and bank deposit voucher of Rs. 6,000

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

The entire advance amount is returned without any expenditure

Sometimes, a person or party may not need to spend any of the amount received in advance due to the cancellation of the program or any other reasons. In such a situation, the whole amount of advance is returned to the office.

Format

Dr. Nepal Rastra Bank.                                                               ...... Cr Name (post) clearance of advance                                        ...... (Being advance cleared by name (post))

 

Example

On 15^th Kartik, 2070 Kharidar Manan Bhandari cleared his program Travelling expenses advance of Rs. 16,00 by returning the whole amount as his tour was canceled.

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

Approved by: Mr. Y

Position: Department head

Date: 2070/07/15

 

Journal voucher for the partial clearance of advance amount

Sometimes, only a partial clearance of the advance is made within the given time frame due to some specific reason. In such a situation, it partial advance is cleared by submitting necessary bills and vouchers.

Format

Dr. B.E. (Budget head)                                                            ...... Cr Name (post) clearance of advance                                 ...... (Being partial advance cleared by name (post))

Example

On 15^th Kartik, 2070 Kharidar Manan Bhandari cheared his program Travelling expenses advance of Rs. 16,00 0 partially by submitting the expenditure bill of Rs. 9,000

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

Journal voucher for Closing advance amount

If the advance given is not cleared up to the end of the fiscal year, it must be cleared and closed artificially treating it as expenditure equal to the advance amount. The journal voucher is passed by making artificial clearance of the advance amount.

Format

Dr. B.E. (Budget head)                                 ...... Cr Name (post) clearance of advance           ...... (Being partial advance of ... cleared artificially)

 Example

The advance of Travelling expenses given to Kharidar Manan Bhandari Rs. 16,000 has been cleared artificially.

Government of Nepal

.....office/Department Ministry

JOURNAL VOUCHER

J.v.No: 100

Date: 2070/07/15

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Also check, Journal voucher with different transactions

Journal Voucher for budget expenditure