Page 212 - Account 10

1. Meaning of Journal Voucher
When any transaction takes place in a government office, it should be entered in
the original book except for petty payments made out of the petty cash fund. It is a
most important form or format used for making the original or primary record of the
government transactions in a chronological order. Different accounts involved in a
transaction are debited and credited along with the amounts in the respective column and
they are supported by a brief explanation of the entries, called narration. Thus, a journal
voucher, also, termed as goshwara voucher in Nepali, may be defined as the primary
entry of the government transactions made in chronological order showing the accounts
to be debited and credited along with their respective amounts. It is also supported by
a brief narration. A particular feature of a journal voucher i.e. goshwara voucher is that
each transaction is entered in a separate form.
In order to bring uniformity among the offices in the use of this form, this voucher is also
prepared as per the format prescribed by Auditor General’s Office i.e. it is identified as
Auditor General Form (AGF) No. 10.

Key Point Journal voucher is a primary entry of the government transactions made
in chronological order showing the accounts to be debited and credited
along with their respective amounts.

2. Objectives of journal voucher
The following are the main objectives of journal voucher:
i. To keep financial transaction of government offices in systematic and
chronological order.
ii. To show the effect of debit and credit of each financial transaction.
iii. To show the detail information about the transactions.
iv. To provide legal evidence of transactions.
v. To facilitate audit.
vi. To facilitate preparation of ledgers and final accounts.

3. Importance of Journal Voucher
Journal voucher is important because of the following advantages:
a. It provides of evidence of transactions.
b. It provides systematic record of financial transaction of government offices.
c. It helps to prepare Bank Cash Book, Monthly Statement of Expenditure, Budget
Sheet and other accounts.
d. It provides the records of all financial transactions of government office in
chronological order.
e. It helps in improving the efficiency of financial administration of office.
f. It helps in rectifying errors, frauds and corruption which are committed in
accounting.
g. It makes every accounting staff responsible of record-keeping.
h. It helps to give financial information at the time of auditing and reporting.

212 Aakar’s Office Practice and Accountancy - 10 Journal Voucher 213