“Journal Voucher”

What is a Journal Voucher?

A journal voucher is a document that records a financial transaction and serves as an internal control mechanism when transferring or rearranging funds. Journal vouchers provide an extra level of scrutiny for accuracy and provide legal protection to the business in the event of discrepancies or irregularities. They are an important tool for audit trails and effective financial management.

Components of a Journal Voucher

A typical journal voucher consists of several essential components including:

• Account Number: The unique account number that identifies the account and the type of transaction.
• Memo or Description: A brief explanation of the transaction.
• Transactional Date: The date on which the transaction is organized.
• Debit/Credit: An indication of whether the transaction increases or decreases the balance.
• Amount: The amount of the transaction.

Purpose and Use of Journal Voucher

The primary purpose of a journal voucher is to provide an audit-proof record of financial activity. By entering transactions into journal vouchers and then in accounting journals, companies are able to track, maintain, and reconcile their financial records.

Journal Voucher also serves as an internal control mechanism to help reduce the risk of mistakes and fraud. For example, when certain departments make transfers, these transfers can be tracked on the voucher before they are entered in the accounting system.

Additionally, journal voucher can be used to record entries that may not fit in standard transaction categories. By using a journal voucher, businesses can efficiently and accurately record more complex transactions.

FAQs

What are the examples of journal vouchers?

Examples of journal vouchers include transfers of funds within the company, payments to suppliers, accrued expenses, and payments to employees. Additionally, companies can also use the journal voucher to record entries when no other categories fit.

What is the objective of journal voucher?

The objective of the journal voucher is to provide an audit-proof record of financial transactions, so that any mistakes or irregularities can be identified and corrected. By tracking financial activity in journal vouchers, companies are able to accurately maintain and reconcile their financial records.

What’s the difference between a journal voucher and a journal entry?

A journal voucher and a journal entry both help to track financial transactions in an organized fashion. However, journal entries are used to record transactions in the accounting system, while journal vouchers are used as an internal control mechanism before entries are marked in the journals.

Also See: Customer Acquisition Cost