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+--- Thread: what is JV? (/thread-what-is-jv)
what is JV? - fawad80 - 04-01-2007
hi..i want to know what is journal voucher..i know bout receipt n payment voucher..but what is JV exactly? and in my accounting software..how can i make entries using JV?
- Saracen - 04-01-2007
Journal Voucher (JV) is nothing but a double entry. It contains all the debits and credits and the sum of all these Drs and Crs is nil.
You can make a JV through any accounting software by debiting the accounts and the amounts which you think needs to be debited and viceversa. For example, if you have incurred an expense of Rs. 5,000 on Advertising then JV would be
Advertising expense (account 8190-****) 5,000
Bank (account 1100-****) 5,000
- zurpk - 04-02-2007
in my view JV is used for non-cash transaction. for example depreciation entry. in which we donot debit or credit cash or bank. similarly, if we want to expire prepaid expenses we can use JV. because again, there is no use of cash in the transaction.
if you want more explanation then please contact me. [email protected]
Zia ur Rahman
- Khawaja - 04-02-2007
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by fawad80</i>
<br />hi..i want to know what is journal voucher..i know bout receipt n payment voucher..but what is JV exactly? and in my accounting software..how can i make entries using JV?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
In routine we use Cash/Bank receipt or Cash/Bank payment voucher (if there is cash involve in the transaction) but sometime we make some enteries where cash or bank donot involve physically/directly then the voucher we use to pass such entry where cash receipt or payment is not involved physically but just we have to pass an entry , entry is called Journal Voucher (JV). for example, you just want to transfer an amount from A's account to B's account then you will not use cash or bank voucher, the voucher you will use to pass this entry is only JV. another example is that if you sell goods on credit then you will pass entry on JV, debit to buyers account and credit to sales account. If u give any discount then too you will pass such entry through JV, if you just want to pass a provisional entry then also you will use JV to pass this entry. If you want to pass depreciation entry then also you will use JV. If you want to provision salary exp, electricity exp, other payable exp. at the end of each month then also you will pass these enteries through JV.
Hope, above information are sufficient to understand about JV.
Regards,
Kh. Zafar Iqbal
Mirpur Azad Kashmir