A Journal voucher in Tally is a crucial voucher in Tally ERP 9 that involves making adjustment entries, entries regarding fixed assets and credit purchases or sales. You need to press the shortcut key “F7” from the accounting vouchers to use Journal Vouchers. There are innumerable examples of journal vouchers which we will be presenting below. By the end of this article, you will have complete knowledge on how to enter Journal vouchers in tally with ease.

What is a Journal 

A journal is the book of accounts where transactions of financial nature are recorded from the source documents. The transactions are recorded on an actual basis when the transactions take place. 

What is Journalising?

The process of recording financial transactions can be termed journal entries in the books of accounts, known as Journalising. It is based on the Double-Entry system of accounting. This form of accounting or bookkeeping is a system of accounting where every transaction has dual effects. It means that the Debit amount must be equal to the Credit amount for every transaction.

What is a Journal Voucher in Tally?

Every transaction requires a piece of documentary evidence like a Journal voucher. Journal Voucher in Tally ERP 9 is used to record transactions other than cash and bank. Transactions related to depreciation, provisions, purchase and sale of fixed assets on credit, write off balances, adjustment entries are recorded in Journal Voucher. It is the most important voucher in accounting vouchers.

You can easily trace these vouchers in any accounting system. Auditors generally use Journal Vouchers during an audit as a part of Audit Procedures. These transactions are of routine nature.

Purpose of Journal Vouchers

Do you know the reason behind the preparation of  Journal Vouchers in tally? Why are they so important? Journal Vouch ers are prepared to serve multi-fold purposes as described below:

• To record non-cash transactions in the books of accounts

Non-cash transactions are those transactions that do not involve a cash payment. For example- depreciation, loss or gain on fixed assets, provision for discount expenses, asset write-downs and deferred income taxes.

• To rectify any business transaction which was wrongly recorded in the books of accounts. 

There may be situations when the business transactions are wrongfully recorded in the books of accounts. It may be incorrect debit or credit of accounts. Journal Vouchers helps in a reversal of the first entry using a journal entry in Tally ERP 9.

• To record the transactions not recorded by other accounting vouchers in Tally ERP 9.

All accounting vouchers record transactions of specific nature or type. Some are described as follows:

1. The receipt voucher records all the money received.
2. Payment voucher records all the money paid.
3. Contra voucher records the transactions involving cash and bank.
4. Sales voucher records the transactions involving the sale of goods or services.
5. Purchase voucher records the transactions involving the purchase of goods or services.
6. Journal voucher records the transaction entries not recorded by other accounting vouchers.  

Also Read: All About Banking Entry in Tally ERP 9