Journal Vouchers
Need for the Journal Voucher
Since the introduction of special journals to take care of cash, sales, and purchases, the present-day journal is used principally as a record for adjusting entries between accounts, the opening and closing entries of the ledger, and any other unusual transactions for which no other specialized form of book has been provided. For this reason it is very important that all the evidence which may be necessary to explain or to prove the correctness of an entry, together with the authority for making it, shall be instantly available in some convenient form. This not only saves much time and irritation in hunting up scattered data to explain an unusual entry, but it relieves the bookkeeper of any personal responsibility which might attach to him for making entries not strictly in accordance with correct accounting principles. It has been seen in an earlier chapter that the authorization of cash disbursements by means of the formal voucher gives a valuable control over cash and the bookkeeping record of it. In like manner, for entries appearing in the journal, the use of the journal voucher accomplishes these purposes.
The forms in which journal vouchers are made out vary with the requirements of each business, but in general they are very simple and follow the same general principles. Two features are essential: (1) the voucher must show clearly the purpose for which it is drawn; and (2) it should provide proper authority, with full explanation of the reasons for making the entry. The usual form is illustrated below:
Journal Voucher (face)
Journal Voucher (reverse)
The entries at the top of the back of the voucher give information for filing purposes only. Where the original vouchers are kept in a loose-leaf binder (thus constituting the journal), only the duplicates, folded lengthwise and filed in an upright binder, need have the notations made on the back.
Method of Use
The same form of voucher may be used in two ways. A regular journal may serve as the posting medium to the various ledger accounts affected. In this case each entry is given a number which corresponds with the number on the voucher. All the original data and the explanations which are necessary to authorize the entry are attached to the vouchers which are filed away by months in numerical order.
The second method is to make out vouchers in duplicate. The original, with the approval of the proper officials and a brief explanation, is filed in a loose-leaf binder which constitutes the journal. The duplicate, numbered like the original, has attached to it all bulky papers, correspondence or other evidence, and is filed away by months in numerical or alphabetical order, whichever best serves the purpose of the accountant. This method saves the time of recopying the debits and credits in a bound book, and also makes it possible to separate journal entries for use in different posting departments.
There is still some objection to loose-leaf general journals, however, though it is gradually disappearing with the use of proper safeguards.
Index to Journal Vouchers
If vouchers are filed numerically and it is found advisable to keep an alphabetical list for the purpose of bringing together all journal vouchers on one subject or from one firm, a supplementary card index giving year, month, and voucher number, may be kept which will serve for several years—as shown below:
Card Index for Journal Vouchers
If it is desirable to keep a record of the amounts also, this simple form may be extended to include voucher numbers and amounts as follows:
Card Index for Journal Vouchers
Content of Voucher
Vouchers for the different journal entries should comprise the following information: in general, correspondence or memoranda approved by proper authority, which should explain the reason for the entry and refer to the original charge or item against which the entry applies. Vouchers for returned purchases should have the following information attached: the shipment record, the stock record, the credit memorandum from the vendor, and correspondence or signed memoranda explaining why requirements were not up to standard.
Monthly depreciation charges should have attached a list of the capital accounts, the percentage of depreciation charged to each, and the one-twelfth which applies to the present month.
Adjustments for allowances on contracts should have the reference or copy of the contract agreement, all correspondence which finally disposes of the settlement, and references to any other legal or official authority which was instrumental in effecting the present settlement.
In making unusual deductions or reserves at the time the books are closed, all the data bearing on the subject should be gathered, or, if this is not possible, very clear references should be made to the places where such material may be found. This is important, because investigations may be made at any time either to readjust or to confirm the entries, or to locate the responsibility for making them.
Little time is needed to gather all the facts bearing on a transaction at the time it is entered on the books, but if the present officials are promoted or leave, it may at a later date take days or weeks to collect the information necessary to explain the reason for the entries made.
Other Methods of Authorizing Entries
A method sometimes used of authorizing journal entries requires the use of a loose-leaf journal for its easy operation. Every entry made by the bookkeeper is sent for approval to the auditor, manager, or other responsible person. Approval is evidenced by signature or initialing. Where the use of the formal journal voucher is found to be cumbersome, this method gives satisfactory results.
Similar to the journal voucher as authority for entry is the debit and credit slip used for authorizing inter-ledger postings. In a large establishment where the sales ledger, for instance, is divided alphabetically among a number of ledger clerks, adjustments as between the different ledgers are usually made by means of these debit and credit slips, which when properly signed by the head bookkeeper give the authority for making the necessary ledger entry.