Page 148 - DLIS003_LIBRARY ADMINISTRATION AND MANAGEMENT

Unit 8: Library Accounting

Self Assessment Notes

Fill in the blanks:
4. ………………….. are nerve centres to know the soundness of the firm.

5. ……………….. are the persons who supply books and other material to the library on
credit, or bankers or lenders of money.

8.3 Financial Records of Library

All institutions which want to survive must meet certain standards of business organization and
the library is no exception to the general rule. Its financial records, like its budget, should be set
up in accordance with the main accounting procedures of the parent office. It is no longer
considered a good practice to maintain a separate library account, handled directly by the
librarian. In most institutions, all library payments are made through a central office. The
finance section of the organization maintains the library account while the library maintains the
records of outstanding orders, bills forwarded, etc.

As stated earlier, the main purpose of library accounting is to keep expenditures within the
budget. In addition, accounting helps in the preparation of the annual report and budget provides
the factual monetary basis for making decisions assists the departments in making a wise and
systematic use of funds and provides information for library reports, studies surveys.

Most of the libraries keep their financial records according to a single-entry system. Though a
certain amount of diversity is found in the maintenance of financial records in different libraries,
one main point to be kept in mind is that these records should be the simplest possible, consistent
with efficiency and should permit rapid and convenient checking against office ledgers. Some of
the records libraries normally maintain are explained below:
Cash Book: The cash book is a record in which details of daily cash transactions regarding
income and expenditure of an institution are entered. But in many libraries, the librarian does
not maintain a cash book, because the financial transactions generally take place through the
administrative office, and not directly through the librarian. However, the libraries which take
some amount towards contingency expenditure do maintain a record in the form of a cash book.
Here is a specimen of the cash book of a library

RECEIPTS EXPENDITURE
Date Particulars No. & Head of Amount Date Particulars No. & Head of Amount
Date of Account Date of Account
Voucher to be ` Ps Voucher to be ` Ps
Credited Debited

Total: Total:
Ledger: A ledger is a book in which the budget provision for income is given at the top and
expenditure on all items and subjects is entered one after the other.

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