Appendix: AGF Forms Directory, Budget Codes, Master Formulas, and Solved SEE Model Question Set

A.1 Complete Directory of Auditor General Forms (AGF No.) for SEE

Revised and implemented by the Office of the Auditor General (OAG) across Federal, Provincial, and Local levels:

A.2 Master Quick-Reference of 5-Digit Revenue & Expenditure Codes

A.3 Golden Accounting Rules & Key Formulas

1. Traditional Classification Rules of Debit and Credit:
   • Personal Account: Debit the Receiver, Credit the Giver.
   • Real Account: Debit what comes in, Credit what goes out.
   • Nominal Account: Debit all expenses and losses, Credit all incomes and gains.
2. Modern Accounting Equation Rule:
   • Assets & Expenses: Increase → Debit (Dr.) | Decrease → Credit (Cr.)
   • Liabilities, Capital/Equity, & Revenue: Increase → Credit (Cr.) | Decrease → Debit (Dr.)
3. Final Accounts Key Formulas:
   • Gross Profit = Net Sales + Closing Stock - (Opening Stock + Net Purchases + Direct Expenses)
   • Net Profit = Gross Profit + Indirect Incomes - Indirect Expenses
   • Closing Capital (in Balance Sheet) = Opening Capital + Net Profit (or - Net Loss) + Interest on Capital - Drawings

A.4 Official Pattern Full-Length SEE Model Question Paper (75 Marks)

Subject: Office Operations and Accounting Full Marks: 75 | Time: 3 Hours

Group ‘A’ — Very Short Answer Questions [11 × 1 = 11 Marks]

Attempt all questions in one sentence:

1. Name the two office procedures related to decision-making.
2. Which classification of filing requires a separate index card?
3. When was Nepal Rastra Bank established?
4. What is an indirect tax?
5. Write the full form of NFRS.
6. Why is a Bank Reconciliation Statement prepared?
7. How do you record outstanding salary expenses given in adjustments in the Final Accounts?
8. Give any two examples of government offices that use Central Level Accounting.
9. What is a Revenue Accounting System?
10. Write any two points of importance of Store Accounting.
11. How does using computers in accounting help in cost control?

Group ‘B’ — Short Answer Questions [8 × 5 = 40 Marks]

12. Define Tippani. Write any four considerations to be followed while drafting a Tippani. [1 + 4 = 5]
13. Differentiate between Horizontal (Flat) Filing and Vertical (Upright) Filing in five points. [5] OR Explain any five major functions of a Commercial Bank. [5]
14. What is Tax? Differentiate between Direct Tax and Indirect Tax in four points. [1 + 4 = 5]
15. From the following particulars, prepare a Bank Reconciliation Statement of Koshi Traders as on 30th Chaitra 2082: [5]
    • (a) Debit balance as per Cash Book on 30th Chaitra: Rs. 45,000.
    • (b) Cheques issued for Rs. 15,000, out of which cheques for Rs. 9,000 were presented for payment.
    • (c) Cheques deposited into the bank Rs. 10,000 were not credited by the bank up to 30th Chaitra.
    • (d) A customer directly deposited Rs. 6,000 into the bank account.
    • (e) Bank credited Rs. 800 as interest and debited Rs. 300 as bank service charge in the Pass Book.
16. Rectify the following accounting errors by passing rectifying journal entries: [5]
    • (a) Salary paid to Ram Rs. 10,000 was wrongly debited to Ram’s personal account.
    • (b) Credit sales to Hari Rs. 7,000 was wrongly debited to Ram’s account.
    • (c) Purchase of Machinery of Rs. 20,000 was debited as Rs. 2,000 in Machinery Account.
    • (d) Sales Book was under-recorded by Rs. 5,000.
    • (e) Repair of Building Rs. 3,500 was debited to Building Account.
17. From the following details of District Police Office, Sindhuli, prepare a Statement of Expenditure (AGF No. 210) for the month of Poush 2082: [5]
    • Employee Remuneration (21111): Annual Budget Rs. 36,00,000 | Exp. up to Mangsir Rs. 15,00,000 | Exp. of Poush Rs. 3,00,000
    • Water & Electricity (22111): Annual Budget Rs. 60,000 | Exp. up to Mangsir Rs. 20,000 | Exp. of Poush Rs. 5,000
    • Office Supplies (22311): Annual Budget Rs. 1,50,000 | Exp. up to Mangsir Rs. 50,000 | Exp. of Poush Rs. 15,000
    • Travel Expenses (22612): Annual Budget Rs. 2,00,000 | Exp. up to Mangsir Rs. 60,000 | Exp. of Poush Rs. 30,000 (including uncleared advance of Rs. 10,000)
    • Furniture & Fixtures (31123): Annual Budget Rs. 3,00,000 | Exp. up to Mangsir Rs. 1,00,000 | Exp. of Poush Rs. 40,000
18. Define Retention Accounting. Mention any three conditions in which retention deposit should be kept, and list any four forms used in Store Accounting. [1 + 2 + 2 = 5]
19. Write any five functions of the Ministry of Finance, OR explain five differences between Internal Audit and Final Audit. [5]

Group ‘C’ — Long Answer Questions [3 × 8 = 24 Marks]

20. Explain the three branches/methods of Business Accounting (Financial, Cost, and Management Accounting), and describe why Accounting Standards (NAS and NFRS) are necessary in Nepal. [4 + 4 = 8]
21. From the following Trial Balance of Himalayan Trading House for the year ended 30th Chaitra 2082, prepare Trading Account, Profit and Loss Account, and Balance Sheet: [2 + 3 + 3 = 8]
    • Debit: Opening Stock Rs. 35,000; Purchases Rs. 1,80,000; Wages Rs. 18,000; Carriage Inwards Rs. 4,000; Salaries Rs. 33,000; Rent Rs. 12,000; Prepaid Insurance Rs. 6,000; Plant & Machinery Rs. 1,00,000; Furniture Rs. 40,000; Debtors Rs. 60,000; Cash at Bank Rs. 52,000 (Total = Rs. 5,40,000).
    • Credit: Capital Rs. 1,90,000; Sales Rs. 2,95,000; Purchase Return Rs. 5,000; Commission Received Rs. 8,000; Creditors Rs. 42,000 (Total = Rs. 5,40,000).
    • Adjustments: (i) Closing Stock Rs. 50,000; (ii) Outstanding Salary Rs. 3,000 and Outstanding Wages Rs. 2,000; (iii) Insurance expired to the extent of Rs. 4,000; (iv) Depreciate Plant & Machinery by 10% and Furniture by 5%.
22. Prepare Journal Vouchers (AGF No. 203) from the following transactions of District Administration Office, Kavre for Shrawan 2082: [8]
    • (a) 2082/04/05: Issued payment order of Rs. 30,000 for purchasing office materials.
    • (b) 2082/04/10: Paid Rs. 20,000 through payment order for house rent to house owner Mr. Chitrakar.
    • (c) 2082/04/14: Advance given to Section Officer Mrs. Rajani Silwal Rs. 25,000 for travelling expenses.
    • (d) 2082/04/24: Mrs. Rajani Silwal submitted travelling expenses bill of Rs. 25,000 and cleared her advance.
    • (e) 2082/04/28: Out of total salary of Rs. 2,20,000 (including EPF contribution) for the month of Shrawan, deducted Rs. 40,000 for EPF and Rs. 2,000 for income tax, distributed net salary, and deposited the deducted amounts in the concerned offices.

A.5 Answer Key Summary for Numerical Questions in the Model Set

• Q.15 (Bank Reconciliation Statement):
  • Starting Cash Book Balance = Rs. 45,000
  • Add: Unpresented cheques (15,000 - 9,000 = 6,000) + Direct deposit (6,000) + Interest credited (800) = + Rs. 12,800
  • Less: Uncredited cheques (10,000) + Bank charges (300) = - Rs. 10,300
  • Balance as per Pass Book (Cr.) = Rs. 47,500.
• Q.16 (Rectification of Errors):
  • (a) Salary A/C Dr. 10,000 To Ram’s A/C 10,000
  • (b) Hari’s A/C Dr. 7,000 To Ram’s A/C 7,000
  • (c) Machinery A/C Dr. 18,000 To Suspense A/C 18,000
  • (d) Suspense A/C Dr. 5,000 To Sales A/C 5,000
  • (e) Repair A/C Dr. 3,500 To Building A/C 3,500
• Q.17 (Statement of Expenditure AGF No. 210):
  • Total Annual Budget = Rs. 43,10,000 | Exp. up to Mangsir = Rs. 17,30,000 | Exp. of Poush = Rs. 3,90,000
  • Total Expenditure Up to Poush = Rs. 21,20,000 | Remaining Budget Balance = Rs. 21,90,000
  • Net Expenditure Excluding Uncleared Advance (21,20,000 - 10,000) = Rs. 21,10,000.
• Q.21 (Final Accounts):
  • Gross Profit = Sales (2,95,000) + Closing Stock (50,000) - [Opening Stock (35,000) + Net Purchases (1,75,000) + Wages (18,000 + 2,000) + Carriage (4,000)] = Rs. 1,11,000.
  • Net Profit = Gross Profit (1,11,000) + Commission (8,000) - [Salaries (33,000 + 3,000) + Rent (12,000) + Expired Insurance (4,000) + Depr. on Plant (10,000) + Depr. on Furniture (2,000)] = Rs. 55,000.
  • Balance Sheet Total = Capital (1,90,000 + 55,000 = 2,45,000) + Creditors (42,000) + Outstanding Salary (3,000) + Outstanding Wages (2,000) = Rs. 2,92,000 (Assets: Plant 90,000 + Furniture 38,000 + Debtors 60,000 + Closing Stock 50,000 + Unexpired Insurance 2,000 + Bank 52,000 = Rs. 2,92,000).

Full worked answers to every question in the paper are in Model Question Paper Solutions.