Government Accounting Accounting is concerned with the processing of financial transactions of an entity. It generates and communicates necessary financial information to its users. It is, therefore, a process of recording, classifying and summarizing the financial transactions and communicating the results of its operations. There are different branches of accounting. One of its branches is government accounting. Government accounting is that branch of accounting, which is used in government institution. The government accounting is different from other branches of accounting such as commercial accounting. The accounting system used in government offices to record and report their financial transactions is known as government accounting. Government accounting is concerned with systematic and scientific recording of government revenues and expenditures. It is the systematic process of collecting, recording, classifying, summarizing and interpreting the financial transactions relating to the revenues and expenditures of government offices. It reveals how public funds have been generated and utilized for the welfare of the general public. Therefore, government accounting may be defined as an accounting system used in government institution for the purpose of recording, classifying, summarizing and communicating the financial information regarding the collection and utilization of public funds and properties. It is concerned with keeping records of government revenues and their expenditure in different development and administrative works. It reflects the receipt and payment position of the public funds.

Government Accounting

Accounting is concerned with the processing of financial transactions of an entity. It generates and communicates necessary financial information to its users. It is, therefore, a process of recording, classifying and summarizing the financial transactions and communicating the results of its operations.

There are different branches of accounting. One of its branches is government accounting. Government accounting is that branch of accounting, which is used in government institution. The government accounting is different from other branches of accounting such as commercial accounting.

The accounting system used in government offices to record and report their financial transactions is known as government accounting. Government accounting is concerned with systematic and scientific recording of government revenues and expenditures. It is the systematic process of collecting, recording, classifying, summarizing and interpreting the financial transactions relating to the revenues and expenditures of government offices. It reveals how public funds have been generated and utilized for the welfare of the general public. Therefore, government accounting may be defined as an accounting system used in government institution for the purpose of recording, classifying, summarizing and communicating the financial information regarding the collection and utilization of public funds and properties. It is concerned with keeping records of government revenues and their expenditure in different development and administrative works. It reflects the receipt and payment position of the public funds.

The following are the main objectives of government accounting: * To record financial transactions of revenues and expenditures related to the government organizations. * To avoid the excess expenditures beyond the limit of the budget approved by the government. * To make expenditures according to the appropriate act, rules and legal provisions of the government. * To provide reliable financial data and information about the operation of public fund. * To prevent misappropriation of government properties by maintaining the systematic records of cash and store items. * To facilitate for making auditing of the books of accounts. * To help for preparing different financial statements and reports. * To facilitate for estimating the annual budget by providing historical financial data of government revenues and expenditures.

The following are the main objectives of government accounting:

* To record financial transactions of revenues and expenditures related to the government organizations.

* To avoid the excess expenditures beyond the limit of the budget approved by the government.

* To make expenditures according to the appropriate act, rules and legal provisions of the government.

* To provide reliable financial data and information about the operation of public fund.

* To prevent misappropriation of government properties by maintaining the systematic records of cash and store items.

* To facilitate for making auditing of the books of accounts.

* To help for preparing different financial statements and reports.

* To facilitate for estimating the annual budget by providing historical financial data of government revenues and expenditures.

The following are the main features of government accounting.

1. Profit And Loss
Since government is a public institution, its main objective is to maintain law and order in the country. Therefore, the accounting system used by an institution is not supposed to reveal its profit and loss, but to reveal how public funds and properties have been used for that purpose.

2. Government Regulations
Government accounting is maintained according to government rules and regulations. The financial policies, rules and regulations determine the system of government accounting.

3. Double Entry System
Government accounting is based on the principles and assumptions of double entry system of book keeping. Accordingly, every government financial transactions are recorded showing their double effects. One aspect of the transaction is debited and the other aspect is credited for each government financial transaction.

4. Budget Heads
All the expenses of government offices are classified into different budget heads and expenditures are made only on approved budget heads.

5. Budgetary Control
Government accounting facilitates budgetary control. No government office can make expenditure more than the allocated budget amount.

6. Banking Transaction
All government transactions are supposed to be performed through banks.

7. Auditing
The concerned department of the government must audit the books of accounts maintained by government office so as to avoid misuse and misappropriation of public funds.