Difference Between Journal Voucher and Journal Entry in Tally

When using Tally for accounting purposes, it's crucial to understand the distinction between a journal voucher and a journal entry. The primary difference lies in their functionality and purpose.

Journal Voucher

In Tally, a journal voucher is a document used to record non-cash transactions such as adjusting entries, depreciation, provisions, etc. It serves as a supporting document for accounting entries and includes details like narration, debit and credit ledger accounts, amounts, and possibly GST information.

Journal Entry

On the other hand, a journal entry in Tally refers to the actual posting of accounting transactions into the ledger accounts. It involves recording all financial transactions regarding income, expenses, assets, and liabilities. Journal entries are essential for maintaining accurate financial records and ensuring compliance with accounting principles.

Key Differences:

1. Journal voucher documents non-cash transactions while journal entries record all financial transactions.
2. Journal vouchers act as supporting documents, whereas journal entries directly affect ledger accounts.
3. Journal vouchers may require approval, whereas journal entries are directly posted to the ledger accounts.

In conclusion, understanding the difference between a journal voucher and a journal entry in Tally is crucial for proper accounting management and compliance with financial reporting standards.

Focus Keyword: journal voucher and journal entry in Tally