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Journal Voucher

sangeetha (PCC student) (84 Points)

01 January 2009

Just what is a JV? What is the significance of checking JV while doing an audit?

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9 Replies

CMA.Devarajan Swaminathan (ACMA) (1067 Points)
Replied 01 January 2009

Not getting into oxford dictionary for technical meaning , when you do something a person who is superior (in terms of designation and authority) to you vouches that what you have done is correct. By doing that a responsible persons acknowledges what you have done is correct.

There are different types of vouchers like Receipt voucher, Payment voucher, Journal Voucher

Receipt and payments vouchers are associated with cash and bank transactions. For other Accounting entries, those entries need to be backed by vouchers to authenticate the transaction has been passed under the knowledge, supervision and the authority of an authorized person.

A voucher vouches for the transaction adn therefore you see signatures of authorised persons on them under whose supervision, knowledge and authority the accounting transactions/entries have been passed in the books of accounts.

Significance of checking the JV at the time of audit is precisely for the above mentioned reasons.

Hope this helps.

Devarajan

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Zainul Tawawalla (Audit ) (101 Points)
Replied 02 January 2009

Hi Sangeetha,

JV's are basically for entries which are other then normal jounal entries. Usually in companies, vouchers are classified in to Purchase vouchers, Sale vouchers, Cash & Bank vouchers, Expense vouchers and Journal vouchers. Normal transactions of purchase, sales, receipts and payments are entered vide the purchase, sale, cash and bank vouchers.

For some special entries, JV's are used. E.g Provisional entries for booking liabilities at the period end, write off of debtors entry, depreciation of fixed assets, etc are accounted vide journal entries.

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Naveen Chand Khulve (CA) (1521 Points)
Replied 03 January 2009

Journal entries are posted for making adjustment like TDS deduction, sister concern adjustment etc. So it is very important to check that whether adjustment made by passing journal voucher is correct or not.