Government Accounting of pakistan practiced

Pakistan Accounting System

1. Government Accounting

2. Government Accounting What is Government accounting Objective of government accounting Feature of government accounting Important terms used in Government Accounting Important Authorities relate to government accounting Parts of Government Accounts.

3. What is Government Accounting   Government Accounting refer to The process of recording and the management of Financial transaction incurred by the Government. Government accounting is scientific procedure of – Collecting, classifying and recording summarized and interpreting all the financial transaction. Include all the revenues and expenditure of all Government entities.  

4. Objective of Government Accounting

5. Objective of Government Accounting Following are the main objective of the government Accounting Information account revenue- it records financial transaction of revenues related to the government organization . It reflects information on generation and collection of revenues during the financial yeas and also past years. Information about expenditure- it provides information about the expenditure incurred on various heads. It is checked by the respective legislatures ( Parliaments or state legislature) Information about deposits and loans- it provides information about the loans granted by the government and repayments of loans.

6. Objective of Government Accounting Information about availability of cash- it provides information about the present and the future cash availability. To avoid the excess expenditure beyond the limit of the budget appoved by the government. To make expenditure according to the appropriate act, rules and legal provisions of the government, To provide reliable financial data and information about the opration of public funds.

7. Objective of Government Accounting To prevent misappropriation of government by maintaining a systematic records of cash and store items. To facilitate records for making auditing of the books of accounts. To help for preparing financial statements and reports. To facilitate estimating the annual budget by providing historical financial data of government revenue and expenditure

8. Feature of government accounting

9. Feature of government accounting Profit and loss: since government is a public institution, its main objective is welfare of the society. Its sole aim is not to achieve profit. Therefore , the accounting system is not supposed to reveal its profit and loss , but to reveal how public funds and properties have been used for the purpose. Government regulations:- government accounting is maintained according to government rules and regulations. The financial policies , rules and regulations determine the system of government accounting. Single entry system: government accounting is based on the principles and assumptions of single entry system,

10. Feature of government accounting Budget Head:- all the expenses of government offices are classified into different budget heads and expenditure are made only on approved budget heads. Budgetary control:- Government accounting facilitate budgetary control. No government office can make expenditure more than the allocated budget. Banking transactions. All government transaction are supposed to be performed through banks. Auditing:- the concerned department of the government must audit the books of accounts maintained by the government office so as to avoid misuse and misappropriation of public funds.

11. Important terms of government accounting

12. Important terms of government accounting Charged expenditure :- to incure these expenditure approval of legislature is not required . these expenditure are charged from the condoldated fund or the public funds. Voted expenditure:- these items of expenditure require sanction of the legislature and cannot be incurred without its grant. The demand for grant for expenditure are placed to the government, Finance Bill/Act:- after the approval if the budget proposal in the legislature, a Finance Bill/Act has to be introduce . when this bill is passed , it becomes Finance Bill/Act/ and mondy can be withdrawn from the condolidated funds of Pakistan or the provincial governments to meet the grants

13. Important terms of government accounting Vote on accounts:- there are certain conditions when government has no time to place full budget in the legislature so to meet the current expenditure government obtain the vote of the legislature under the provision of Vote of accounts. After sanction obtained in the legislature, government obtain money from the consolidate funds to meet the expenditure. Public accounts committee:- Public accounts committee is formed by the legislature to scrutinize the appropriation account and also to audit the report thereon. All the reports on the financial statements , that are to be submitted to the president or governor are also examined by the public accounts committee.

14. Important terms of government accounting Annual Accounts, every year from the compiled accounts annual accounts are prepared showing under the respective heads the annual receipt and disbursement for each purpose. These annual accounts are got certified by the CGA/AGP of Pakistan. The report of the CGA relating to these accounts aee submitted to the President or the Governor. They cause these reports to be laid before the House of parliaments and standing committees

15. Controller General of Accounts CGA Controller General of Accounts (CGA) functions under the Ministry of Finance. He is responsible for:- Prescribe the form of accounts of the Governments. To frame or revise rules and manuals relating thereto He will do so on behalf of the President of Pakistan And on the advice of the Auditor General of Pakistan, He also compiles and submits annual accounts of All governments. He is responsible for establishing and maintaining a technically sound in management accounting system He is also in charge of the exchequer control and internal audit,

16. Parts of Governments Accounts Consolidate Accounts Public Accounts

17. Consolidate Accounts All the direct and indirect taxes loans taken by the government , repayments of loans interest of loans to the government from part of this funds. The government meets all the expenditure from this funds. No money can be appropriated out of the fund without of the approval of the legislature. The governments need approval of legislature to withdraw money from this fund All receipts nad expenditure out of this fund is audited by the AGP and is reported to the respective legislature.

18. Public Accounts All other public money ( other than those covered under the consolidated fund ) received by or on behalf o the government are credited to this account fund. Example of these funds are National Saving Accounts and Prize Bond , provident Fund , group insurance etc. It this fund , Government acts only as a custodian of the funds There is a liability of government to repay the money received on Public Accounts.