Rules of Debit and Credit:

• • Debit:
    • Increases assets and expenses.
    • Decreases liabilities and equity.
  • Credit:
    • Increases liabilities and equity.
    • Decreases assets and expenses.
  • These rules apply to all accounting elements (accounts) and ensure that transactions are recorded accurately.

Common Reconciling Items in Bank Reconciliation Statement:

• • Outstanding checks: Checks issued but not yet presented for payment.
  • Deposits in transit: Deposits made but not yet reflected in the bank statement.
  • Bank errors: Errors made by the bank in recording transactions.
  • Interest or service charges: Bank charges not yet recorded in the company’s books.

Difference between Consolidated Fund and Public Account:

• • Consolidated Fund: Holds government revenues, public debt, and other receipts. It can be used for any purpose authorized by the legislature.
  • Public Account: Holds funds of individuals, corporations, or other entities held temporarily by the government (e.g., tax refunds, trust funds). It cannot be used for government expenditure.

Abbreviations:

• • IPSAS: International Public Sector Accounting Standards
  • SAE: Statement on Auditing Standards
  • GFS: Government Financial Statistics
  • APPM: Accounting Policies and Procedures Manual
  • FABS: Financial Accounting and Budgeting System

Accounting Framework for Pakistan:

1. • The accounting framework for Pakistan includes the adoption of International Financial Reporting Standards (IFRS) and compliance with local regulations. It ensures consistency, transparency, and comparability in financial reporting.
     

Transactions between Entities of Same/Different Governments:

1. • Exchange Account: Records transactions between entities of the same government (e.g., one department paying another for services).
   • Subdivision: Exchange account can be subdivided into intra-governmental and inter-governmental transactions.

Main Components of Domestic Debt:

1. • Treasury bills: Short-term debt instruments issued by the government.
   • Bonds: Long-term debt securities with fixed interest payments.
   • Loans: Borrowings from domestic sources.

Components of Manual Accounting Record of DAO:

• • Cash book: Records cash transactions.
  • Ledger: Contains individual accounts.
  • Journal: Records original entries.
    

Weaknesses in the NAM (New Accounting Model):

• • Complexity: NAM can be intricate and challenging to implement.
  • Transition difficulties: Moving from traditional accounting to NAM can be disruptive.
  • Training requirements: Staff needs training to adapt to NAM.