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.