Every financial transaction requires a journal voucher, which contains the necessary information such as the voucher’s identification number, date, a summary of the business deal, the sum of the transaction, taxes due, a comparison to other evidence, the maker’s sign, and the sign of the authorized person, and is used to keep a record in the group’s books.
The main goal is to rectify any incorrectly reported business transactions. In addition, the secondary aim is to record non-cash transactions in the accounting records.
There isn’t always an outflow in every transaction. As a result, journal vouchers are required for activities such as the depreciation of tangible assets, amortization of intangibles, write-off account balances, amending journal entries, and so on.