Subject: Other
Journal voucher is an accounting form coded AGF no. 10 for the use of recording government financial transactions. 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 the auditor general. It is known as the primary book of accounts because all the financial transactions of government offices are first of all recorded on it. It is also called the book of original entry. It is prepared by following the principles of the double-entry book-keeping system. It records every transaction showing its debit and credit accounts and helps to prepare ledger. It is used by central level as well as operating level offices for recording financial transactions.
Journal voucher is an essential document for the government offices. Without preparing journal voucher, the subsequent ledger accounts cannot be prepared. The following are the main objectives of journal voucher: -
Journal voucher is important document of government because of the following reasons:
The following points should be considered while 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:
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:
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
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
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
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:
Generally, operating level offices prepare the following types of journal vouchers:
What is journal voucher?
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 the auditor general.
What is journal voucher?
Journal voucher is an accounting form coded AGF no. 10 for the use of recording government financial transactions. 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 the auditor general. It is known as the primary book of accounts because all the financial transactions of government offices are first of all recorded on it. It is also called the book of original entry. It is prepared by following the principles of the double-entry book-keeping system. It records every transaction showing its debit and credit accounts and helps to prepare ledger. It is used by central level as well as operating level offices for recording financial transactions.
What are the objectives of journal voucher?
Journal voucher is an essential document for the government offices. Without preparing journal voucher, the subsequent ledger accounts cannot be prepared. The following are the main objectives of journal voucher: -
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