Journal Voucher | Meaning and Definition

What is Journal Voucher?

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. 

Benefits Of Journal Voucher

  • All business transactions are recorded in the sequence in which they occurred.
  • It assists in the correction of mistakes.
  • It makes it simple to keep track of non-cash spending.
  • It aids with the closing of the books at the end of the year.
  • It allows a smooth backup in the event of an entry reversal.
  • It aids in compliance with the applicable authority’s key financial reporting rules.
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