1.Definition
Monthly statements are financial statements prepared by operating level government offices at the end of each month and submitted to central level offices. They provide information about:
1.Budget release and expenditure
2.Uncleared advances
3.Bank and cash balances
4.Government revenue
5.Security deposits
2.Importance
Monthly statements are important because they:
1.Provide source of financial data – Information about budget, cash, advances, and revenue
2.Control over budget – Ensure expenditures remain within limits
3.Aid auditing – Facilitate internal and external audits
4.Evaluate government programs – Helps assess efficiency and performance
5.Support financial decisions – Budget transfers, estimation, and execution
6.Administrative tool – Assists planning, policy making, and day-to-day administration
3.Types of Monthly Statements
1.Statement of Expenditure (AGF No. 13)
2.Statement of Outstanding Advance (AGF No. 14)
3.Bank Reconciliation Statement (AGF No. 15)
4.Statement of Government Revenue (AGF No. 9)
5.Statement of Security Deposit (AGF No. 19)
4.Statement of Expenditure (AGF No. 13)
Purpose: To report budget and fund position at the end of the month
Parts:
Position of Budget – Columns include:
1.Current month expenditure
2.Cumulative budget release
3.Budget head number
4.Budget head name
5.Annual appropriation
6.Total expenditure to date
7.Budget balance
Position of Fund – Includes:
1.Revolving fund received
2.Total expenditure
3.Uncleared advances
4.Actual expenditure=Total expenditure–Uncleared advances
5.Bank balance
6.Cash balance
5.Statement of Outstanding Advance (AGF No. 14)
Shows uncleared advances, including:
1.Name of person/party receiving advance
2.Amount
3.Reason for unclearing
Ensures accountability of advances
6.Bank Reconciliation Statement (AGF No. 15)
Purpose: Reconcile bank cash book balance with bank statement balance
Causes of differences:
1.Cheques issued but not yet presented
2.Cheques deposited but not credited
3.Bank charges not recorded in cash book
4.Income collected by bank but not recorded
5.Errors in cash book or bank statement
7.Statement of Government Revenue (AGF No. 9)
Shows revenue collected by the office under different heads
Helps track funds deposited in consolidated fund and remaining cash balance
8.Statement of Security Deposit (AGF No. 19)
Tracks security deposits received and refunded
Helps ensure proper accounting of deposits and transfers to revenue
9.Key Formulas
1.Balance of Budget=Annual appropriation–Total expenditure to date
2.Actual Expenditure=Total expenditure–Uncleared advances
3.Bank Balance(if not given)=Total imprest fund received–Total expenditure–Cash balance–Loan receivable+Loan payable+Deposit received
4.Revolving Fund Balance=Total imprest fund received–Expenditure to date
Important Questions
q1
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21111 | Salary | 2,92,500 | 2,92,500 |
| 21112 | Local allowances | 96,000 | 96,000 |
| 22311 | Office related expenses | 1,10,000 | 1,10,000 |
| 22121 | House rent | 2,40,000 | 2,40,000 |
| 29311 | Furniture | 2,00,000 | 2,00,000 |
| Total | – | 9,38,500 | 9,38,500 |
Additional information:
Total revolving fund received Rs. 3,45,000
Cash in hand Rs. 500
Cash at bank Rs. 12,500
Uncleared furniture advance Rs. 15,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21111 | Salary | 2,53,500 | 2,02,500 | 22,500 | 2,31,000 |
| 21112 | Local allowances | 91,500 | 64,000 | 8,000 | 83,500 |
| 22311 | Office related expenses | 78,500 | 75,000 | 8,000 | 70,500 |
| 22121 | House rent | 1,60,000 | 1,05,000 | 20,000 | 1,40,000 |
| 29311 | Furniture | 1,05,000 | 95,000 | 20,000 | 85,000 |
Fund position:
Total amount received upto Kartik Rs. 3,45,000
Total expenditure upto Kartik Rs. 3,32,000
Outstanding (Uncleared) advances Rs. 15,000
Total expenditure (Less uncleared advance) Rs. 3,17,000
Bank balance Rs. 12,500
Cash in hand Rs. 500
Loan payable Rs. ………
Loan receivable Rs. ………
Submitted by: …………
Approved by: …………
Designation: …………
Designation: …………
Date: …………
Date: …………
q2
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21121 | Salary | 3,00,000 | 2,80,000 |
| 21122 | Local allowances | 1,00,000 | 90,000 |
| 22321 | Office related expenses | 1,20,000 | 1,10,000 |
| 22131 | House rent | 2,50,000 | 2,20,000 |
| 29321 | Furniture | 1,50,000 | 1,40,000 |
| Total | – | 8,20,000 | 7,40,000 |
Additional information:
Total revolving fund received Rs. 3,80,000
Cash in hand Rs. 1,000
Cash at bank Rs. 15,000
Uncleared advances Rs. 20,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21121 | Salary | 3,00,000 | 2,80,000 | 25,000 | 2,95,000 |
| 21122 | Local allowances | 1,00,000 | 90,000 | 10,000 | 90,000 |
| 22321 | Office related expenses | 1,20,000 | 1,10,000 | 5,000 | 1,15,000 |
| 22131 | House rent | 2,50,000 | 2,20,000 | 15,000 | 2,35,000 |
| 29321 | Furniture | 1,50,000 | 1,40,000 | 10,000 | 1,50,000 |
Fund position:
Total amount received upto Kartik Rs. 3,80,000
Total expenditure upto Kartik Rs. 3,60,000
Outstanding (Uncleared) advances Rs. 20,000
Total expenditure (Less uncleared advance) Rs. 3,40,000
Bank balance Rs. 15,000
Cash in hand Rs. 1,000
q3
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21211 | Salary | 3,20,000 | 3,00,000 |
| 21212 | Local allowances | 1,10,000 | 1,00,000 |
| 22411 | Office related expenses | 1,30,000 | 1,20,000 |
| 22211 | House rent | 2,60,000 | 2,40,000 |
| 29411 | Furniture | 1,40,000 | 1,30,000 |
| Total | – | 9,60,000 | 8,90,000 |
Additional information:
Total revolving fund received Rs. 3,90,000
Cash in hand Rs. 1,500
Cash at bank Rs. 14,500
Uncleared advances Rs. 25,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21211 | Salary | 3,20,000 | 3,00,000 | 30,000 | 2,90,000 |
| 21212 | Local allowances | 1,10,000 | 1,00,000 | 10,000 | 1,00,000 |
| 22411 | Office related expenses | 1,30,000 | 1,20,000 | 5,000 | 1,25,000 |
| 22211 | House rent | 2,60,000 | 2,40,000 | 20,000 | 2,40,000 |
| 29411 | Furniture | 1,40,000 | 1,30,000 | 10,000 | 1,40,000 |
Fund position:
Total amount received upto Kartik Rs. 3,90,000
Total expenditure upto Kartik Rs. 3,85,000
Outstanding (Uncleared) advances Rs. 25,000
Total expenditure (Less uncleared advance) Rs. 3,60,000
Bank balance Rs. 14,500
Cash in hand Rs. 1,500
q4
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21311 | Salary | 2,80,000 | 2,50,000 |
| 21312 | Local allowances | 90,000 | 80,000 |
| 22511 | Office related expenses | 1,20,000 | 1,10,000 |
| 22311 | House rent | 2,30,000 | 2,10,000 |
| 29511 | Furniture | 1,60,000 | 1,50,000 |
| Total | – | 8,80,000 | 8,00,000 |
Additional information:
Total revolving fund received Rs. 3,60,000
Cash in hand Rs. 2,000
Cash at bank Rs. 10,000
Uncleared advances Rs. 15,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21311 | Salary | 2,80,000 | 2,50,000 | 25,000 | 2,55,000 |
| 21312 | Local allowances | 90,000 | 80,000 | 10,000 | 80,000 |
| 22511 | Office related expenses | 1,20,000 | 1,10,000 | 5,000 | 1,15,000 |
| 22311 | House rent | 2,30,000 | 2,10,000 | 15,000 | 2,15,000 |
| 29511 | Furniture | 1,60,000 | 1,50,000 | 10,000 | 1,60,000 |
Fund position:
Total amount received upto Kartik Rs. 3,60,000
Total expenditure upto Kartik Rs. 3,50,000
Outstanding (Uncleared) advances Rs. 15,000
Total expenditure (Less uncleared advance) Rs. 3,35,000
Bank balance Rs. 10,000
Cash in hand Rs. 2,000
q5
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21411 | Salary | 3,10,000 | 2,90,000 |
| 21412 | Local allowances | 1,00,000 | 90,000 |
| 22611 | Office related expenses | 1,40,000 | 1,30,000 |
| 22411 | House rent | 2,40,000 | 2,20,000 |
| 29611 | Furniture | 1,50,000 | 1,40,000 |
| Total | – | 9,40,000 | 8,70,000 |
Additional information:
Total revolving fund received Rs. 3,75,000
Cash in hand Rs. 1,500
Cash at bank Rs. 12,000
Uncleared advances Rs. 20,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21411 | Salary | 3,10,000 | 2,90,000 | 25,000 | 3,05,000 |
| 21412 | Local allowances | 1,00,000 | 90,000 | 10,000 | 90,000 |
| 22611 | Office related expenses | 1,40,000 | 1,30,000 | 5,000 | 1,35,000 |
| 22411 | House rent | 2,40,000 | 2,20,000 | 15,000 | 2,25,000 |
| 29611 | Furniture | 1,50,000 | 1,40,000 | 10,000 | 1,50,000 |
Fund position:
Total amount received upto Kartik Rs. 3,75,000
Total expenditure upto Kartik Rs. 3,70,000
Outstanding (Uncleared) advances Rs. 20,000
Total expenditure (Less uncleared advance) Rs. 3,50,000
Bank balance Rs. 12,000
Cash in hand Rs. 1,500
q6
B.H. No. / Budget Details
| B.H. No. | Budget head / sub-head | Annual budget Rs. | Expenditure upto Ashwin Rs. |
|---|---|---|---|
| 21511 | Salary | 3,50,000 | 3,20,000 |
| 21512 | Local allowances | 1,10,000 | 1,00,000 |
| 22711 | Office related expenses | 1,50,000 | 1,40,000 |
| 22511 | House rent | 2,70,000 | 2,50,000 |
| 29711 | Furniture | 1,60,000 | 1,50,000 |
| Total | – | 10,40,000 | 9,60,000 |
Additional information:
Total revolving fund received Rs. 4,00,000
Cash in hand Rs. 2,000
Cash at bank Rs. 15,500
Uncleared advances Rs. 25,000
Required: Statement of expenditure for the month of Kartik
Statement of Expenditure – Kartik
| B.H. No. | Budget Heads / Sub-heads | Annual Appropriation Rs. | Expenditure upto Kartik Rs. | Expenditure of Kartik Rs. | Balance of Budget Rs. |
|---|---|---|---|---|---|
| 21511 | Salary | 3,50,000 | 3,20,000 | 35,000 | 3,15,000 |
| 21512 | Local allowances | 1,10,000 | 1,00,000 | 10,000 | 1,00,000 |
| 22711 | Office related expenses | 1,50,000 | 1,40,000 | 5,000 | 1,45,000 |
| 22511 | House rent | 2,70,000 | 2,50,000 | 20,000 | 2,50,000 |
| 29711 | Furniture | 1,60,000 | 1,50,000 | 10,000 | 1,60,000 |
Fund position:
Total amount received upto Kartik Rs. 4,00,000
Total expenditure upto Kartik Rs. 3,85,000
Outstanding (Uncleared) advances Rs. 25,000
Total expenditure (Less uncleared advance) Rs. 3,60,000
Bank balance Rs. 15,500
Cash in hand Rs. 2,000
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