Importance of New accounting system( Accounting system of nepal government)

1. It provides detailed information regarding government revenue and government
     expenditures.

2. It provides necessary data for formulating government policies and program me.

3. It helps to prepare the budget for the next year.

4. It helps to control the government activities.
 
5. It helps to perform audit work.

6. It provides detailed information whether or not the aids.grants, assistance,loan given by        the friendly nations and international agencies are properly used.

Characteristics or eatures of new accounting system ( Accounting system of nepal Government)

1. based on double-entry system principle ,
2. simplicity, 
3. flexibility, 
4. source of financial information ,
5. secrecy , 
6. Guided and control by budget, 
7. based on financial act and rules , 
8. provision of budget transfer ,
9. User of bracket . 
10. Division in central and operating levels ,
11. Emphasis on banking transaction . 

Objectives of new Accountingsystem ( Accounting system of nepal Government)

The Accounts committee constituted by the government stated the following objectives of new Accounting system :

1. to provide basic financial statistics and necessary data required to prepare financial. 

2.To keep control over the available funds and other resources as well as  their expenditures. 

3. To summaries the accounting data to prepare government budget .

4. To determined the level and position of responsible officer involved in different projects and make them accountable.


5. To collect the historical data of budge head.


6.  To provide necessary financial data for audit and investigation of facts so as to evaluate the progress of project .  
     

Evolution of nepal Accounting system ( Accounting system of nepal government)

In Nepal ,the origin of government accounting system may be traced back Lichen period.At that period some sorts of record keeping regarding revenues and expenditures of the government had maintained.As the source of government incomes and expenditures were limited.the then government never felt the need of on elaborated accounting system in the country.During this regime.voluntary labor tax (shramadan) and property or kind tax(jinsikar) collected form the public .were the prime sources of government  revenue.At that period.government expenditures were also limited .construction of temples and renovation of old one.performance of religious works or allocation and arrangement of war more or less the same.government. In malls regime also.the government expenditures were or less the same.however the government explored and added some new sources of revenue.notably custom duty and  business tax.

new Accounting system of government of nepal ( Accounting system of nepal Government)

With the advent of democracy in the country in 2007 BS. Nepal's first priority was to have all round development of the nation . At that period , the USSR had adopted planned economy in the country and has achieved economic from that model .developing countries throughout the world were influenced with this model . They introduce this model in their respective countries and achieve success to a certain extend . Nepal also could not remains isolated from this influence .Therefore , Nepal presented budget in the year 2008 and also executed its first five year plan in the year 2013 . various countries of the world extended their hand in the development process of Nepal by providing grants , donation ,aids, subsidies etc.           

Accounting Equation of important transactions and Explanation

1. Transactions related to capital account .

2. Transactions related to drowsing account .

3. Transactions related to purchase account , purchase return account , cash discount and settlement of creditors ' account .

4. Transections related to sales , sales return account , discount allowed and settlement of debtors' account.

procedure for developing an accounting equation

The steps required for developing an accounting equation are as under :
 step 1 : To find out variables : Each and every transaction affects an accounting equation . The main three elements , assets, liabilities, and capital are included inaccounting equation .

step 2 : To find out effects variablrs : After financing out the variable effected by a transation , the second step  for developing an equation is to find out effects on  variable .

step 3 : Sho the effects on equation : After ascertaining the veriable of a transaction , it is necessary to show the effect on the appropriate side of equation .