Videos Related with Journal Voucher

Note on Journal Voucher

  • Note
  • Things to remember
  • Videos
  • Exercise
  • Quiz

Example of Journal Voucher
Example of Journal Voucher

Journal voucher is called ' goswora voucher' in Nepal. Journal voucher is a primary and most importat record of financial transaction in new accounting system. It is a kind of voucher, which is used for recording financial transaction of the government is regular order of dates. It is also known as book of original entry because every financial transaction of the government is recorded first of all in this journal voucher. It is based on the principle of double entry system of book keeping i.e. every transaction has two aspects one debit and another credit. The office of audit general has prescribed the form of journal voucher in AGF No.1 which is maintained by both central and operating level officers.

The following are the main objectives of journal voucher: -

  1. To make systematic and permanent record of financial transactions of government offices in sequential order.
  2. To show debit and credit accounts of each financial transaction.
  3. To show financial transactions in sequential order.
  4. To present detailed information about the financial transactions of government offices.
  5. To help for preparing ledger and financial statements.

Importance and Advantages of Journal Voucher

Journal voucher is important document of government because it:

  1. Keeps the systematic record of financial transactions of government offices.
  2. Provides information of debit and credit aspects of each financial transactions.
  3. Acts as an evidence in the future.
  4. Help to detect and rectify errors.
  5. Acts as a basis for preparation of accounts and statements.

Specimen of Journal Voucher

Following is the specimen of a journal voucher:

Specimen of Journal Voucher
Specimen of Journal Voucher

Considerations for Preparing Journal Voucher

The following points should be considered while preparing journal voucher: -

  1. Each transaction must be recorded in a separate journal voucher.
  2. While preparing journal voucher, the principle of double entry syste of book keeping must be followed.
  3. The word B.E. must be used immediately after the word 'Dr" in the case of budget ecpenditure.
  4. The supporting documents of transactin must be attachment to the voucher, while making its approval.
  5. Sufficient narration must be written for each transaction.
  6. Dr. before debit transaction and Cr. before credit transaction must be written.
  7. Each ransaction must be recorded in a separate journal voucher.

Rules for Preparing Journal Voucher

The new accounting system follows the double-entry book-keeping system. Under the double-entry system, every financial transaction of government office has a dual effect. It means each transaction involves at least two accounts. One aspect of the transaction is debited whereas another aspect is credited. Accounts are debited and credited by following certain rules. Journal voucher is prepared by following such rules. The rules of debit and credit are as follows:

Rules based on Types of Account

Under the double- entry system, the accounts are classified into three types as a personal account, real account, and nominal account. There are separate rules for debit and credit which are as follows:

  1. Personal account
    A personal account is an account, which is related to an individual or an organization. This account is created when transaction related to a person or an organization. The rule of debit and credit under personal account is as follows:
    Debit the receiver
    Credit the giver

  2. Real account
    A real account is an account, which is related to asset or property. It is created when the transaction is related to asset or property. The rule of debit and credit under real account is as follows:
    Debit what comes in
    Credit what goes out

  3. Nominal account
    A nominal account is an account, which is related to incomes and expenses. It is created when the transaction is related to incomes and expenses. The rule of debit and credit under nominal account is as follows:
    Debit all expenses and losses
    Credit all incomes and profits

Rules based on Accounting Equation

The accounting system is a statement of equality between the three basic elements of financial transactions which are assets, capital, and liabilities. The rule is as follows:

  • Debit increase in assets and expenses
  • Debit decrease in capital, income, and liabilities
  • Credit increase in capital, income, and liabilities
  • Credit decrease in assets and expenses

Types of Journal Voucher

Generally, operating level offices prepare the following types of journal vouchers:

  1. Journal voucher for budget expenditure
  2. Journal voucher for advance transactions
  3. Journal voucher for miscellaneous transactions
  4. Journal voucher for the yearly closing

  • Journal voucher is a primary document of government offices which is used for keeping the systematic & chronological record of financial transactions under the prescribed format of office of auditor general.
.

Very Short Questions

The following are the main objectives of journal voucher: -

  1. To make systematic and permanent record of financial transactions of government offices in sequential order.
  2. To show debit and credit accounts of each financial transaction.
  3. To show financial transactions in sequential order.
  4. To present detailed information about the financial transactions of government offices.
  5. To help for preparing ledger and financial statements.

Journal voucher is important document of government because it:

  1. Keeps the systematic record of financial transactions of government offices.
  2. Provides information of debit and credit aspects of each financial transactions.
  3. Acts as an evidence in the future.
  4. Help to detect and rectify errors.
  5. Acts as a basis for preparation of accounts and statements.

The following points should be considered while preparing journal voucher: -

  1. Each transaction must be prepared in a separate journal voucher.
  2. It should be prepared by following the principles of the double-entry book-keeping system.
  3. Dr. against the debit account and Cr. against the credit account should be written.
  4. The abbreviation of budget expenditure B.E. must be used immediately after the word Dr. in case of budget expenditure.
  5. Related code no. of the budget head should be mentioned.
  6. Sufficient narration should be given for each transaction.
  7. The supporting documents should be attached with the journal voucher for its approval.

The accounting system is a statement of equality between the three basic elements of financial transactions which are assets, capital, and liabilities. Each and every financial transaction has a dual effect. However, the total of assets is always equal to the sum of capital and liabilities. The rule is as follows:

  • Debit increase in assets and expenses
  • Debit decrease in capital, income, and liabilities
  • Credit increase in capital, income, and liabilities
  • Credit decrease in assets and expenses

Under the double- entry system, the accounts are classified into three types as a personal account, real account, and nominal account. There are separate rules for debit and credit which are as follows:

  1. Personal account
    A personal account is an account, which is related to an individual or an organization. This account is created when transaction related to a person or an organization. The rule of debit and credit under personal account is as follows:
    Debit the receiver
    Credit the giver

  2. Real account
    A real account is an account, which is related to asset or property. It is created when the transaction is related to asset or property. The rule of debit and credit under real account is as follows:
    Debit what comes in
    Credit what goes out

  3. Nominal account
    A nominal account is an account, which is related to incomes and expenses. It is created when the transaction is related to incomes and expenses. The rule of debit and credit under nominal account is as follows:
    Debit all expenses and losses
    Credit all incomes and profits

0%
  • What is the full form of AGF?

    Auditor Gadget Form


    Auditor General Firm


    Annual General Form


    Auditor General Form


  • Journal voucher is important document of government because it ______.

     

    all the options are correct


    acts as an evidence in the future


    helps to detect and rectify errors


    keeps the systematic record of financial transactions of government offices


  • Which one of them is not the objective of journal voucher?

    To help for preparing ledger and financial statements.


    To make temporary record of financial transactions of government offices in sequential order.


    To show financial transactions in sequential order.


    To present detailed information about the financial transactions of government offices.


  • Which one of the following is not the objective of journal voucher? 

    To make systematic and permanent record of financial transactions of government offices in sequential order.


    To show debit and credit accounts of each financial transaction.


    To hide detailed information about the financial transactions of government offices.


    To show financial transactions in sequential order.


  • An account, which is related to incomes and expenses is known as ______.

    a real account


    a personal account


    none of the options are correct


    a nominal account


  • You scored /5


    Take test again

DISCUSSIONS ABOUT THIS NOTE

You must login to reply

Forum Time Replies Report

B


You must login to reply