Journal Voucher Entries
Journal voucher (JV) can be a little confusing sometimes for accounting students and
most of the times they face a little difficulty in creating Journal vouchers and
general journal entries.
General journal is a term used for book of original entry in which all the business
transactions are recorded at first time. Journal voucher refers to a document that posts
or records a transaction in the general journal. Journal voucher entries are sometimes
referred to all those entries which are other than the routine transactions like entries
of account payable or account receivable. In current accounting systems where the
transactions are systemized, journal vouchers are used to rectify any error or wrong
posting. Sometimes, journal voucher entry is used to enter such transactions which can’t
be supported by third party documents like invoice or any other supporting document.
Journal voucher entries are generally prepared for the following
transactions:
- To record depreciation
- Adjustment or rectification entries
- Opening entries
- Closing entries
- Transfer of balance from one account to another
- Accrual expenses or income
- Sales or purchase of fixed assets
Elements of Journal Voucher Entry
Journal voucher is piece of paper which contains all the necessary information about
the entry and holds proper signature from authorized persons. A journal voucher should
contain the following information:
- Name of the office or department
- A unique identification number
- Date on which this document is produced
- Clear description about the entry
- Debit and credit account information
- Amount must be written in both figures and words
- Proper signature of the person who prepares the voucher
- Proper signature from approved authority
Common rules for preparing Journal Voucher
- For each transaction there should be a separate journal voucher used.
- The person who prepares the entry should have proper knowledge of double entry book keeping.
- All the supporting documents and signatures should be attached with the JV.
- All the narration should be clearly written.
Examples and their Journal Voucher Entries:
Example #1
Universal Motors purchased a vehicle for business use of worth 432,000 from Kimono Motors
on invoice number 210c on dated 12/3/2018.
Required: Prepare the necessary voucher in the books of Universal motors.
Solution:
Example #2
Provision is to be made by Universal Motors for outstanding salaries and wages amounting
180,000 for March 2018.
Required: Pass the necessary journal voucher in the books of Universal Motors on 31/3/2018.
Solution:
