Journal Voucher – Complete Notes

1.Meaning and Concept

Journal voucher is the primary document (original entry book) used in operating-level government offices to record all financial transactions under the double-entry system.
It is prepared in AGF No. 10 format prescribed by the Auditor General.
Every transaction is first recorded in the journal voucher, then posted to ledger accounts.

2.Importance / Advantages

1.Provides chronological and systematic record of all transactions.
2.Shows debit and credit accounts with amounts clearly.
3.Basis for preparing ledgers, statements, and reports.
4.Serves as audit proof and legal evidence.
5.Increases staff responsibility and accountability.
6.Helps detect and rectify errors easily.
7.Ensures smooth financial administration.

3.Specimen of Journal Voucher (AGF No. 10)

Government of Nepal
…………..Office / Department / Ministry
Journal Voucher
AGF No. 10
J.V. No. ………
Date: ……………
Code No. ………

(Being …………………………………………)
Receipt No. ………… Amount …………
Submitted by ………… Designation ………… Date …………
Cheque No. ………… Amount of cheque …………
Approved by ………… Designation ………… Date …………

4.Rules of Debit and Credit (Double Entry Basis)

On basis of account type:
1.Personal A/c → Debit the receiver, Credit the giver
2.Real A/c → Debit what comes in, Credit what goes out
3.Nominal A/c → Debit all expenses & losses, Credit all incomes & gains

On basis of effect:
1.Increase in asset/expense/loss → Debit
2.Decrease in asset/expense/loss → Credit
3.Increase in liability/capital/income/gain → Credit
4.Decrease in liability/capital/income/gain → Debit

5.Types of Journal Voucher

1.General Journal Voucher
2.Advance Journal Voucher
3.Miscellaneous Journal Voucher

6.General Journal Voucher

1.Used for budgeted expenditure transactions.
2.Word “B.E.” must be written before budget head.
3.Nepal Rastra Bank / Cash is always credited (unless otherwise specified).

Example Format:

Dr. B.E. [Budget Head Name] Amount
Cr. Nepal Rastra Bank Amount

(Being payment made for ………………)

7.Advance Journal Voucher

Advance = amount paid before goods/services are received.
Prepared twice: when advance is given and when advance is cleared.

When giving advance:
Dr. [Person Name] [Item] Advance Amount
Cr. Nepal Rastra Bank Amount

When clearing advance – Cases:

General Payment Example

Advance Given

Advance Cleared – Case 1: Expenditure = Advance

Advance Cleared – Case 2: Expenditure < Advance (surplus refunded)

Advance Cleared – Case 3: Expenditure > Advance (excess paid)

Advance Cleared – Case 4: Whole Advance Returned

Advance Cleared – Case 5: Partial Clearance

8.Miscellaneous Journal Voucher

Important Questions

Q1

Transactions:
a) 2074-04-01 – Received bank order Rs. 1,00,000 for initial revolving fund (one-sixth of last year’s expenditure).
b) 2074-04-02 – Received initial imprest fund Rs. 24,00,000 (one-sixth of total last year’s budget).
c) 2074-04-05 – Bank order Rs. 3,00,000 for initial imprest fund.
d) 2074-05-07 – Bank order Rs. 75,000 for additional revolving fund.
e) 2074-04-01 – Received Rs. 1,50,000 as revolving fund through bank transfer.

Answer – Journal Voucher Table

Q2

Transactions:
a) 2074-05-22 – Mr. Bindukar presented the office material purchase bill of Rs. 17,000 against the advance of Rs. 15,000; cleared by cheque for excess Rs. 2,000.
b) 2074-05-29 – Section Officer Mr. Dilip Pandey presented the bill of Rs. 28,000 against advance Rs. 25,000; cleared by cheque for insufficient Rs. 3,000.
c) 2074-06-13 – Cleared computing machine purchase advance of Mr. Gopal Gupta Rs. 18,000 on basis of expenditure Rs. 19,000.
d) 2074-07-09 – Production material advance of Miss Januka Wagle Rs. 30,000 cleared by issuing cheque Rs. 2,000.
e) 2074-07-13 – Office supplies advance of Ms. Benisha Hamal Rs. 10,000 cleared on expenditure Rs. 11,500.

Answer – Journal Voucher Table

Q3

Transactions:
a) 2074-07-01 – Petty cash fund Rs. 3,000 established.
b) 2074-07-20 – Rectification of error: repair expense Rs. 6,000 wrongly debited to salary.
c) 2074-08-05 – Security deposit Rs. 40,000 received from contractor.
d) 2074-08-10 – Security deposit Rs. 30,000 refunded to contractor.
e) 2074-08-15 – Payment of building Rs. 1,90,000 after deducting 5% security deposit Rs. 9,500.

Answer – Journal Voucher Table

Q4

Transactions:
a) 2074-04-01 – Salary Rs. 66,000 distributed; deductions: PF Rs. 12,000, PF Loan Rs. 10,000, Income Tax Rs. 1,000.
b) 2074-05-27 – Salary Rs. 64,000 + DA Rs. 20,000; deductions: PF Rs. 8,000, Income Tax Rs. 1,800.
c) 2074-06-30 – Salary Rs. 77,000 + Local Allowance Rs. 30,000; deductions: PF Rs. 14,000, Income Tax Rs. 2,000.
d) 2074-07-29 – Salary Rs. 69,500; deductions: PF Rs. 18,000, Tejarath Sapati Rs. 10,000, Income Tax Rs. 1,500.
e) 2074-08-29 – Salary Rs. 50,000; deductions: PF + Income Tax Rs. 1,000.

Answer – Journal Voucher Table

Q5

Transactions:
a) 2074-04-28 – Loan Rs. 2,00,000 received from District Health Office through bank.
b) 2074-05-07 – Loan Rs. 1,00,000 received from District Agriculture Office.
c) 2074-05-08 – Loan Rs. 2,00,000 repaid to District Health Office.
d) 2074-06-01 – Loan Rs. 1,00,000 repaid to District Agriculture Office.
e) 2074-07-02 – Loan Rs. 75,000 received from District Irrigation Office.

Answer – Journal Voucher Table

Q6

Transactions:
a) 2074-04-25 – Security deposit received from Mr. Ram Hari Dahal Rs. 20,000, Mr. Hari Gopal Shrestha Rs. 22,000.
b) 2074-07-30 – Payment Rs. 1,90,000 to contractor after deducting 5% security deposit Rs. 9,500.
c) 2074-08-10 – Security deposit Rs. 30,000 refunded to contractor Mr. Ram Hari.
d) 2074-09-01 – Security deposit received from contractors: Rs. 15,000, Rs. 16,000, Rs. 14,000.
e) 2074-10-04 – Payment Rs. 95,000 for road pavement after deducting 5% deposit.
f) 2074-10-05 – Security deposit Rs. 17,000 refunded to contractor Mr. Ashish Basnet.

Answer – Journal Voucher Table