Government Accounting

Principles of Accounting — Grade 11 | Unit 4 | NEB Nepal

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Introduction

Government accounting is fundamentally different from commercial accounting. A business exists to earn profit; a government exists to serve its citizens. A business is accountable to its owners and investors; a government is accountable to its citizens, parliament, and the public. These differences in purpose and accountability require a different accounting system — one that tracks not just financial performance but the authorized use of public funds, compliance with the annual budget, and the proper discharge of public trust.

Unit 4 of NEB Grade 11 Principles of Accounting covers Nepal’s government accounting system — its meaning, features, objectives, and the practical documents used to record government financial transactions: the journal voucher, the bank cash book, the budget sheet, and the expenditure report. Understanding government accounting is important not only for the NEB examination but for any student who may work in Nepal’s public sector — the country’s largest single employer.

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1. Introduction to Government Accounting

1.1 Meaning and Definition of Government Accounting

According to R.J. Jones and M. Pendlebury, “Government accounting is the system of accounting adopted by public sector organizations — its primary purpose is to ensure accountability for public funds by demonstrating that money has been spent in accordance with legislative authority.”

According to Leo Herbert, “Government accounting is an accounting system that deals with the receipt and disbursement of public funds in accordance with the financial regulations governing such transactions — its aim is accountability, not profit measurement.”

According to the Comptroller and Auditor General of Nepal (OAGN), “Government accounting is the systematic recording, classifying, summarizing, and reporting of all government financial transactions to provide a true and fair view of the government’s financial position and to ensure that public funds are used for authorized purposes.”

According to the Financial Procedures Act, 2055 BS of Nepal, government accounting means “the process of recording all receipts and payments of government transactions in a systematic manner in accordance with prescribed accounting rules and procedures.”

Government accounting in Nepal is based on the New Accounting System (NAS) introduced in 2064 BS (2007/08 AD) — a double entry, accrual-based system aligned with international public sector accounting standards and Nepal’s federal financial management framework.

1.2 Objectives of Government Accounting

i. Accountability and transparency: To demonstrate that public funds have been received and spent in accordance with the approved budget and legal authorization. Every Rupee of public money must be accounted for.

ii. Budget compliance: To track actual revenues and expenditures against the approved annual budget — ensuring government offices do not overspend their allocated budget heads.

iii. Financial control: To provide information enabling authorities to detect irregularities, unauthorized expenditures, and financial mismanagement.

iv. Policy decision support: To provide financial information to help government policymakers, the National Planning Commission, and the Ministry of Finance make informed decisions about resource allocation and development priorities.

v. Audit and parliamentary oversight: To provide a reliable record for audit by the Office of the Auditor General (OAGN) and review by Nepal’s parliament — the ultimate accountability mechanism for public funds.

vi. National accounts: To contribute data for the preparation of national financial statistics — Nepal’s government financial statistics feed into GDP calculations, fiscal analysis, and international reporting to the IMF and World Bank.

vii. Federal coordination: Under Nepal’s federal structure (Constitution of Nepal, 2072 BS), accounting systems must track financial flows between the federal government, seven provincial governments, and 753 local governments.

1.3 Features (Characteristics) of Government Accounting

i. Budget-based: Government accounting is centered on the approved annual budget — all transactions must relate to authorized budget heads and sub-heads. Spending beyond the budget is unauthorized and illegal.

ii. Double entry system: Nepal’s government accounting uses double entry bookkeeping — every transaction has a debit and a credit entry — ensuring accuracy and completeness.

iii. Cash basis with elements of accrual: Nepal’s government accounting is primarily cash-based (transactions recorded when cash is received or paid) — though the New Accounting System introduces some accrual elements for asset recording and liability recognition.

iv. Banking orientation: All government transactions must pass through the bank — revenue is deposited and expenditure is paid through official bank accounts. The District Treasury Controller Office (DTCO) controls all banking transactions.

v. Classification by budget heads: All government expenditure is classified according to prescribed budget head codes — which identify the program, project, expenditure type, and source of funding.

vi. Treasury Single Account (TSA): All government bank accounts are integrated into a Treasury Single Account at Nepal Rastra Bank — enabling central visibility over government cash balances and improving cash management.

vii. Accountability-focused: The primary purpose is accountability — demonstrating proper use of public funds — rather than profit measurement as in commercial accounting.

viii. Federal structure: Under Nepal’s federal system, accounting is maintained at three levels: federal government offices, provincial government offices, and local government offices — each with defined accounting responsibilities.

1.4 Difference Between Government Accounting and Commercial Accounting

Basis	Government Accounting	Commercial Accounting
Primary objective	Accountability for public funds	Measurement of profit/loss
Basis	Budget authorizations	Business transactions
Ownership	Public (citizens)	Private (owners/shareholders)
Profit focus	No profit motive	Profit maximization
Accounting basis	Cash-based (primarily)	Accrual-based
Main statements	Budget sheet, expenditure report	P&L account, balance sheet
Audit	Comptroller and Auditor General	Independent external auditor
Legal framework	Financial Procedures Act; Public Finance Act	Companies Act; Income Tax Act
Governing body	Ministry of Finance; DTCO	ICAN; Board of Directors
Users	Parliament, citizens, audit office	Shareholders, investors, creditors

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2. New Accounting System of Nepal

2.1 Concept and Evolution

Nepal’s government accounting has evolved significantly over the past several decades. The New Accounting System (NAS) was introduced in 2064 BS (2007/08 AD) as part of the Public Financial Management (PFM) reform agenda — replacing the older, less systematic accounting practices with a unified, double-entry system across all government offices.

According to the Financial Comptroller General Office (FCGO) of Nepal, “The New Accounting System is a double entry, government-wide accounting system that ensures uniformity, accuracy, and transparency in the recording and reporting of all government financial transactions — from the central government ministries down to district-level operating offices.”

The development of the New Accounting System was supported by international development partners including the World Bank, ADB, and DFID — reflecting the importance of sound public financial management for Nepal’s development effectiveness.

2.2 Features of the New Accounting System

i. Double Entry Principle: Every government transaction is recorded with equal debit and credit entries — ensuring arithmetical accuracy and completeness.

ii. Budget Head Classification: All transactions are coded according to Nepal’s prescribed budget head structure — identifying:

• Revenue/Expenditure source
• Ministry/Department
• Program/Project
• Economic classification (salaries, goods, capital expenditure, etc.)
• Source of financing (Government of Nepal, foreign aid, loans)

iii. Banking-Centered Operations: The NAS is built around bank transactions — all revenues are deposited into official bank accounts; all payments are made by cheque or electronic transfer through DTCOs (District Treasury Controller Offices).

iv. Voucher-Based Recording: Every transaction must be supported by an approved journal voucher — a document that records the transaction details, account codes, and authorization before entry into the accounts.

v. Standardized Forms: The NAS uses prescribed standardized forms — journal vouchers, bank cash books, budget sheets, expenditure reports — ensuring consistency across all government offices at every level.

vi. Treasury Single Account (TSA): All government cash balances are consolidated in the Treasury Single Account at Nepal Rastra Bank — with individual operating accounts for each government office linked to the TSA.

vii. District Treasury Controller Office (DTCO): Each district has a DTCO that controls all government banking transactions in that district — processing payments, receiving revenues, and maintaining the district-level accounts.

viii. Financial Reporting: The NAS produces standardized financial reports — budget execution reports, expenditure reports, and annual consolidated financial statements — enabling monitoring and audit.

2.3 Classification of Government Expenditure

Nepal’s government expenditure is classified under two main heads:

i. Recurrent (Current) Expenditure: Day-to-day operating costs that do not create long-term assets. Sub-divided into:

• Compensation of Employees (salaries, allowances, social security contributions)
• Use of Goods and Services (office supplies, electricity, fuel, maintenance)
• Interest Payments (on domestic and foreign debt)
• Subsidies (to public enterprises and households)
• Grants (to provinces, local governments, NGOs)
• Social Protection (social security payments, welfare benefits)

ii. Capital (Development) Expenditure: Investment in long-term assets and infrastructure. Sub-divided into:

• Acquisition of Non-Financial Assets (buildings, roads, machinery, equipment)
• Capital Grants (to lower levels of government for capital projects)
• Net Lending (loans to public enterprises and other entities)

This classification is aligned with the Government Finance Statistics Manual (GFSM 2014) of the International Monetary Fund — enabling Nepal’s government accounts to be compared internationally.

2.4 Classification of Government Offices

Nepal’s government offices are classified for accounting purposes into:

i. Constitutional Bodies: Supreme Court, Parliament Secretariat, Commission for Investigation of Abuse of Authority (CIAA), Office of the Auditor General, Election Commission, and other constitutional commissions.

ii. Ministries and Departments: Federal government ministries and their subordinate departments — the primary executing agencies for government programs and projects.

iii. District-Level Offices: Government offices at district level — including district administration offices and sector-specific offices (district education offices, district health offices, etc.).

iv. Operating Level Offices: The lowest level of government that directly implements programs and makes expenditures — schools, health posts, irrigation offices, road maintenance units.

v. Provincial Government Offices: Under Nepal’s federal structure, seven provincial governments maintain their own accounting systems — with financial transfers from the federal government tracked through inter-governmental fiscal transfers.

vi. Local Government Offices: 753 local governments (metropolitan cities, sub-metropolitan cities, municipalities, and rural municipalities) maintain their own financial accounts — as constitutionally guaranteed units of governance.

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3. Journal Voucher

3.1 Meaning and Definition

According to the Financial Comptroller General Office (FCGO) Nepal, “A journal voucher is a pre-numbered document that serves as the primary source document for recording government financial transactions — it captures the details of a transaction, the accounts to be debited and credited, the authorization, and the supporting evidence.”

According to Leo Herbert, “A voucher in government accounting is a document that evidences the propriety and legality of a financial transaction — it is both the authorization for payment and the record of that payment.”

A journal voucher in Nepal’s government accounting system:

• Serves as the book of original entry (equivalent to a journal entry in commercial accounting)
• Provides authorization before the transaction is processed
• Creates an audit trail linking each accounting entry to its source document
• Must be pre-numbered for accountability

3.2 Types of Journal Vouchers

Nepal’s NAS uses several standardized voucher types:

i. Revenue Voucher (Rajaswa Voucher): Used to record all government revenue receipts — taxes, fees, grants received. Prepared when money is received and deposited into the government bank account.

ii. Expenditure Voucher (Kharcha Voucher): Used to record all government expenditure payments — salaries, goods and services, capital works. Prepared before payment is made to authorize the expenditure.

iii. Advance Voucher: Used to record advances given to government employees or contractors — for travel, purchase of goods, or project implementation. The advance is a receivable until properly accounted for.

iv. Journal Adjustment Voucher: Used for non-cash transactions — depreciation entries, inter-departmental transfers, corrections of errors, year-end adjustments.

3.3 Format of Journal Voucher

GOVERNMENT OF NEPAL
JOURNAL VOUCHER

Office Name: ______________________        Voucher No.: ___________
District: _________________________        Date: __________________
Fund: ____________________________        Fiscal Year: ____________

                    ACCOUNT DETAILS
┌─────────────────┬──────────────┬─────────────────┬───────────┬───────────┐
│ Budget Head Code │ Description │ Account Code    │  Debit    │  Credit   │
│                  │             │                 │   (Rs.)   │   (Rs.)   │
├─────────────────┼──────────────┼─────────────────┼───────────┼───────────┤
│                  │             │                 │           │           │
│                  │             │                 │           │           │
├─────────────────┴──────────────┴─────────────────┼───────────┼───────────┤
│                              TOTAL               │           │           │
└───────────────────────────────────────────────────┴───────────┴───────────┘

Description of transaction:
_____________________________________________________________________________

Supporting documents: ________________________________________________________

Prepared by: ____________  Verified by: ____________  Approved by: ____________

3.4 Importance of Journal Vouchers

i. Legal authorization: No government payment can be made without an approved voucher — it is the formal authorization for expenditure.

ii. Audit trail: Vouchers create a complete documentary record linking each accounting entry to its source transaction — essential for audit by the OAGN.

iii. Accountability: Pre-numbering of vouchers prevents omission or forgery — every number must be accounted for.

iv. Error prevention: The voucher preparation process (preparation, verification, approval by authorized officer) provides multiple checks before a transaction is recorded.

v. Expenditure control: Vouchers ensure that expenditure is checked against budget availability before payment — preventing unauthorized overspending of budget heads.

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4. Bank Cash Book

4.1 Meaning and Definition

According to the Financial Comptroller General Office (FCGO) Nepal, “The bank cash book is the primary book of original entry in government accounting — it records all government receipts and payments made through the official bank account in chronological order.”

According to Leo Herbert, “The government cash book is the central accounting record — it records every inflow and outflow of government funds, providing a complete record of cash movement and the basis for reconciliation with bank statements.”

The bank cash book in Nepal’s government accounting system is equivalent to the three-column cash book in commercial accounting — but with additional columns for budget head codes and other government-specific information.

4.2 Key Features of the Government Bank Cash Book

i. Chronological order: Transactions are recorded in the order they occur.

ii. Budget head coding: Each transaction is coded to the relevant budget head — enabling tracking of expenditure against specific budget allocations.

iii. Bank-centered: All receipts and payments flow through the official bank account — cash transactions outside the bank are minimized and controlled.

iv. Running balance: The bank cash book maintains a running balance at all times — the balance should match the bank statement balance (subject to timing differences in uncleared items).

v. Source document reference: Each entry in the bank cash book references the journal voucher number — creating a cross-reference for audit.

vi. Dual control: Government cash books require preparation by one official and verification/approval by another — maintaining internal control over public funds.

4.3 Format of Government Bank Cash Book

BANK CASH BOOK
Office: ________________    District: ____________    Fiscal Year: ________

RECEIPTS                                        PAYMENTS
Date | Voucher | Budget | Description | Amount  Date | Voucher | Budget | Description | Amount
     | No.     | Head   |             | (Rs.)        | No.     | Head   |             | (Rs.)
─────┼─────────┼────────┼─────────────┼────────  ────┼─────────┼────────┼─────────────┼───────
     |         |        |Opening Bal. | XXXXX        |         |        |             |
     |         |        |             |              |         |        |             |
     |         |        |             |              |         |        |Closing Bal. | XXXXX
─────┴─────────┴────────┴─────────────┴────────  ────┴─────────┴────────┴─────────────┴───────
TOTAL                                XXXXX      TOTAL                               XXXXX

4.4 Entries in the Government Bank Cash Book

Receipts (Debit) side entries:

• Opening balance (cash/bank balance at start of period)
• Tax revenue received (income tax, VAT, customs, excise)
• Non-tax revenue (fees, fines, dividends from public enterprises)
• Grants from higher-level government
• Loan receipts (foreign and domestic)
• Recovery of advances given previously

Payments (Credit) side entries:

• Salaries and allowances paid to government employees
• Payments for goods and services (suppliers, contractors)
• Capital expenditure payments (construction, equipment)
• Grants paid to lower-level governments and organizations
• Loan repayments (principal and interest)
• Advances given to employees and contractors

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5. Budget Sheet

5.1 Meaning and Definition

According to the Financial Comptroller General Office (FCGO) Nepal, “The budget sheet is a statement that shows, for each budget head, the approved budget allocation, the actual expenditure to date, and the remaining (unspent) budget balance — it is the primary tool for budget monitoring and control.”

According to R.J. Jones and M. Pendlebury, “The budget statement in government accounting shows the variances between authorized appropriations and actual expenditures — it is the primary control document ensuring that spending stays within legal limits.”

The budget sheet is unique to government accounting — there is no equivalent in commercial accounting because commercial organizations are not legally bound to specific budgetary limits in the same way. Every government office in Nepal must maintain an up-to-date budget sheet for each budget head allocated to it.

5.2 Purpose and Importance of Budget Sheet

i. Budget compliance: The most critical purpose — ensuring that actual expenditure does not exceed the approved budget for each head. Overspending a budget head is a violation of Nepal’s Financial Procedures Act.

ii. Cash flow planning: By showing the remaining budget balance, the budget sheet helps offices plan their future expenditure — ensuring funds remain for essential activities.

iii. Monitoring and evaluation: The budget sheet enables program managers and finance officers to monitor whether planned activities are being implemented on schedule and within budget.

iv. Reporting to higher authorities: Budget sheets provide the data for progress reports submitted to the Ministry of Finance, line ministries, and the National Planning Commission.

v. Audit evidence: Budget sheets demonstrate that each expenditure was made within authorized limits — a key audit requirement.

5.3 Format of Budget Sheet

BUDGET SHEET
Office: __________________________    Fiscal Year: ______________
Budget Head Code: ________________    Budget Head Description: ___________

┌─────────────┬────────────────┬──────────────────────────┬──────────────┐
│             │ Approved       │ Expenditure              │ Remaining    │
│ Description │ Budget         ├───────────┬──────────────┤ Balance      │
│             │ (Rs.)          │ This Month│ Cumulative   │ (Rs.)        │
│             │                │   (Rs.)   │  to Date (Rs.)│             │
├─────────────┼────────────────┼───────────┼──────────────┼──────────────┤
│ Salaries    │                │           │              │              │
│ Allowances  │                │           │              │              │
│ Goods &     │                │           │              │              │
│   Services  │                │           │              │              │
│ Capital     │                │           │              │              │
│   Works     │                │           │              │              │
├─────────────┼────────────────┼───────────┼──────────────┼──────────────┤
│   TOTAL     │                │           │              │              │
└─────────────┴────────────────┴───────────┴──────────────┴──────────────┘

Prepared by: ____________    Verified by: ____________    Date: __________

5.4 Budget Revision and Supplementary Budget

Budget revision: During the fiscal year, budget allocations may be revised — either increasing or decreasing specific heads based on changing needs. In Nepal, budget revisions require approval from the Ministry of Finance (for internal reallocation) or Parliament (for additional spending beyond the original budget).

Supplementary budget: If the government needs to spend more than the original budget allows, a supplementary budget must be passed by Parliament — as required under Nepal’s Constitution and the Financial Procedures Act.

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6. Expenditure Report

6.1 Meaning and Definition

According to the Financial Comptroller General Office (FCGO) Nepal, “An expenditure report is a periodic statement that summarizes the actual government expenditure incurred during a specified period — classified by budget head — for submission to supervising authorities, the Ministry of Finance, and the Office of the Auditor General.”

According to the Public Finance Management Act of Nepal, “Government offices must prepare and submit regular expenditure reports to the FCGO and the DTCO — providing a transparent account of all public funds spent.”

The expenditure report serves as the formal reporting mechanism through which individual government offices account to higher authorities for the public funds entrusted to them. It is a key accountability document.

6.2 Types of Expenditure Reports

i. Monthly Expenditure Report: Prepared and submitted monthly — showing expenditure in the current month and cumulative expenditure from the beginning of the fiscal year to date.

ii. Trimester Report: Nepal’s fiscal year is divided into three trimesters (Shrawan–Aswin, Kartik–Poush, Magh–Ashadh). Trimester reports are submitted to the National Planning Commission and Ministry of Finance — showing progress against annual targets.

iii. Annual Expenditure Report: End-of-year report showing the total expenditure for the fiscal year against the approved budget — the primary basis for annual audit.

iv. Project-wise Expenditure Report: For development projects financed by foreign aid or loans, separate project expenditure reports are submitted to the financing agency (World Bank, ADB, bilateral donors).

6.3 Format of Expenditure Report

EXPENDITURE REPORT
Office: ____________________________    Fiscal Year: ______________
Period: ____________________________    Report Date: ______________

┌──────────────┬─────────────────┬──────────────────────────────┬──────────────┐
│ Budget Head  │  Description    │      Expenditure (Rs.)        │  Approved    │
│   Code       │                 ├──────────┬───────────────────┤  Budget (Rs.)│
│              │                 │ Current  │  Cumulative to    │              │
│              │                 │  Period  │  Date             │              │
├──────────────┼─────────────────┼──────────┼───────────────────┼──────────────┤
│              │ Salaries        │          │                   │              │
│              │ Allowances      │          │                   │              │
│              │ Goods/Services  │          │                   │              │
│              │ Capital Works   │          │                   │              │
│              │ Other           │          │                   │              │
├──────────────┼─────────────────┼──────────┼───────────────────┼──────────────┤
│              │   TOTAL         │          │                   │              │
└──────────────┴─────────────────┴──────────┴───────────────────┴──────────────┘

Certification: I certify that the above expenditure has been incurred for
authorized purposes in accordance with the Financial Procedures Act.

Signature: _______________    Designation: _______________    Date: _________

6.4 Submission Chain for Expenditure Reports

Nepal’s expenditure reports flow upward through the administrative hierarchy:

Operating level office → DTCO (District Treasury Controller Office) → Department / Ministry → Financial Comptroller General Office (FCGO) → Ministry of Finance → Parliament (annual consolidated accounts)

Simultaneously, copies are sent to the Office of the Auditor General (OAGN) for audit purposes.

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7. Treasury Single Account (TSA) System

7.1 Meaning and Features

According to the IMF (International Monetary Fund), “A Treasury Single Account is a unified structure of government bank accounts that gives a consolidated view of government cash resources and enables centralized payment processing — it eliminates the fragmentation of government cash balances across multiple bank accounts.”

Nepal introduced the TSA system as part of the Public Financial Management reform — consolidating previously fragmented government bank accounts into a unified system managed through Nepal Rastra Bank.

Key features of Nepal’s TSA:

i. Centralized cash management: All government cash balances are visible in real time at the FCGO — enabling efficient use of available cash and reducing idle balances.

ii. Banking through NRB: All government accounts are maintained at Nepal Rastra Bank — with commercial bank accounts used only for operational convenience, linked to the TSA.

iii. Reduces borrowing costs: Centralized cash visibility reduces the need for short-term government borrowing — cash surpluses in one ministry can offset deficits in another.

iv. Strengthens accountability: Central visibility over all government cash transactions strengthens accountability and reduces opportunities for diversion of funds.

v. Payment factory model: The DTCO acts as a “payment factory” — all payments are processed centrally, with individual offices authorizing but not directly accessing bank accounts.

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8. The Office of the Auditor General (OAGN) and Government Audit

8.1 Role of the Auditor General

According to Article 241 of the Constitution of Nepal, 2072 BS, “The Auditor General shall audit the cash, accounts, and other details relating to the funds of the Government of Nepal, the Province Governments, all courts, offices and institutions under the Government, and all entities in which the Government of Nepal has a majority ownership.”

According to the Auditor General Act, 2075 BS of Nepal, the Auditor General:

• Conducts final audit of all government accounts
• Certifies the consolidated financial statements of the Government of Nepal
• Submits an annual audit report to the President (and through the President to Parliament)
• Identifies irregularities, unauthorized expenditure, and financial mismanagement
• Makes recommendations for improving public financial management

The OAGN’s annual audit reports are among the most important accountability documents in Nepal — regularly identifying significant irregularities in government expenditure across all levels of government.

8.2 Types of Government Audit

i. Regularity (Compliance) Audit: Verifies that expenditure was made in accordance with law, regulation, and budget authorization — the most traditional form of government audit.

ii. Financial Audit: Verifies the accuracy and completeness of the financial statements — confirming that accounts show a true and fair view.

iii. Performance Audit (Value for Money Audit): Examines whether government programs achieved their intended objectives economically, efficiently, and effectively — going beyond mere financial compliance to assess impact.

iv. Revenue Audit: Examines whether government revenue has been properly assessed, collected, and deposited — checking for leakage and evasion.

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9. Government Accounting in Nepal’s Federated Structure

Nepal’s transition to a federal system under the 2072 BS Constitution has significantly transformed government accounting:

i. Three-tier accounting: Federal, provincial, and local governments all maintain separate accounting systems — though with shared standards, formats, and oversight from the FCGO.

ii. Inter-governmental fiscal transfers: The federal government transfers substantial funds to provinces and local governments (through fiscal equalization grants, conditional grants, and revenue sharing). These transfers are recorded in the accounts of both the transferring and receiving entities.

iii. Local government accounting: Nepal’s 753 local governments — most previously without formal accounting systems — have been provided with standardized accounting systems, forms, and training. Local government accounting capacity remains a significant challenge.

iv. Consolidated government accounts: The FCGO is responsible for producing consolidated government financial statements covering all three tiers — a complex undertaking given the number and diversity of government entities.

v. National Reporting Framework: Nepal reports its government financial statistics to the IMF under the Government Finance Statistics Manual (GFSM 2014) framework — enabling international comparison of Nepal’s fiscal position.

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Conclusion

Government accounting is the financial foundation of Nepal’s public sector — the system through which billions of Rupees of public funds are recorded, tracked, controlled, and reported. Without sound government accounting, Nepal cannot effectively manage its development budget, maintain accountability to its citizens, attract foreign aid and investment, or demonstrate progress toward its development goals.

As the Financial Comptroller General Office of Nepal has stated, “The integrity of government accounting is the integrity of the state — when public funds are properly accounted for, citizens can trust their government. When they are not, trust collapses and development is undermined.”

For NEB Grade 11 students, Unit 4 completes a comprehensive introduction to accounting across three sectors — commercial accounting (Units 1–3) and government accounting (Unit 4). The ability to understand and apply government accounting principles is practically important for Nepal’s large public sector — and for any citizen seeking to understand how Nepal’s government manages the national resources entrusted to it by the people.

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Prepared for NEB Grade 11 Principles of Accounting — Unit 4: Government Accounting Aligned with the National Curriculum Framework 2076, Curriculum Development Centre, Sanothimi, Bhaktapur