Journal Voucher

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

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. 

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.

The full form of JV is Journal Voucher.

JV's are passed for efffecting non cash transactions & also for adjustment entries.

Thanks all. Taking it one step further cant he fllowing entry be classified as aJV?

Maintenance expenses Dr    XXX

     To XXX Man power Pvt ltd           XXX

JV is going to adjustment only it is a non cash transaction.

Yes, You are creating liability for accounts, not affecting the cash and bank balance. (Only expenses booked). not paid as of now.

what are the points to remember while checking journal voucher? 

what are the points to remember while checking journal voucher?