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Guide to Accounting Voucher

accounting voucher

What is accounting voucher?

A voucher in accounting is a written statement to confirm or see some proofs like a transaction. A voucher is considered a document that shows the goods purchased and the services that are taken. The payments will be indicated in the ledger account. There are many benefits of using accounting vouchers. It is useful for upholding a higher level of control over the payable process. Another advantage of a voucher is that it can be pre-numbered which makes it easier for audit trail for payables. 

Moreover, a voucher can separate invoice approval from the invoice payment which helps in scheduling both and also to maximize efficiency. If you have a voucher in accounting, you can reduce the number of checks as several invoices can be paid at once. Also, the payment of the invoices is prepared by the cashier who will report to the treasurer. Below you can find more details regarding the vouchers in accounting.

Why are Accounting vouchers prepared?

Accounting vouchers in a company are prepared because

  • It is a source document and proof of every transaction that takes place in a business. 
  • Later, when auditing happens every year, these vouchers in accounting play a very essential role. It will help the external auditor in collecting audit evidence. 
  • It also helps the business owner to understand every transaction of the company and also understand if there is any loss or profit acquired by the company.

How to prepare accounting vouchers 

An accountant has to prepare accounting vouchers for a company. The accountant uses the source document to prepare the vouchers. The source documents are any proof that is related to a business transaction. Such documents comprise cash memos, bills, bank deposit slips, receipts, chequebook counterfoils, challans, and other information which depicts the happening of any kind of transaction in an organization. Almost all the vouchers in accounting will have the same details. A voucher usually includes the following details.

  • Serial number of voucher
  • Type and Date of Voucher
  • Debit and Credit Column
  • Amount in both figures and words
  • Total Column
  • Particulars column( here is where the brief description of the transaction is recorded)
  • Space for Signature of accountant
  • Signature of Manager
  • Signature of Receivers( for bank payment voucher or cash payment voucher)

These vouchers in accounting are the base of the entire accounting system. It is very important to carefully prepare the voucher as any mistakes made in the voucher can result in preparing the wrong documents. So, while preparing a voucher in accounting, an accountant must follow certain procedures as mentioned below.

  • All the supporting documents must be carefully verified( date, amount, nature of transactions, and many more)
  • All the supporting documents must be approved by an authorized team
  • The accountant should select the type of voucher to be used for preparing the transaction
  • An accountant should be an expert in all accounting rules
  • An accountant must make sure that the voucher’s debit and credit sides are balanced.
  • Also, the accountant must have a good command over several accounting heads which should be debited or credited

Moreover, an accountant must allot the correct account head to avoid any kind of mistakes in recording the transactions. Mostly a senior accountant will cross-check the voucher prepared by an accountant in every company.

How do accounting vouchers work?

Accounting vouchers have many uses in the company. Usually, in business-to-business transactions, the payments are not due instantaneously. These payments can be transferred by the allowed date and they can vary between 30, 60, or even 90 days. Whenever a company receives supplies from another company, instead of making the payment at that moment, they will create a voucher mentioning all the details of the purchases made and the payment to be made as a reminder. A voucher can contain many supporting documents and some of them are as follows:

  • An invoice received from the supplier
  • Details of the supplier like name, address, contact number)
  • Data like amount due with a possible discount and due date for the payment
  • Purchase order made by the company
  • A receipt showing the received good and services by the company
  • General ledger accounts
  • Proof of any kind of payments
  • Signature of the company’s authorised personnel who can authorize the purchase and the payment.

Types of accounting vouchers

Since you have now understood the voucher meaning in accounting let us learn about the different types of vouchers.

  1. Receipt Voucher

This type of receipt is used to record cash or bank receipt. There are two types of receipt vouchers known as Cash Receipt Voucher and Bank Receipt Voucher. A cash receipt voucher will have the information regarding the receipt of cash in hand. Whereas the bank receipt voucher indicates receipt of cheque or DD (demand draft). This means the money is not received as cash but, all the transactions have been done through bank transfers or checks or DD.

  1. Payment Voucher 

A payment voucher is not like a receipt voucher. In a payment voucher, the cash or bank will be credited, but in a receipt voucher, they are debited. In the receipt voucher, there will be an inflow of funds. But in a payment voucher, it is an outflow of funds. The main use of payment vouchers is to record any payment of cash or cheque and there are two different types of payment vouchers which are cash payment vouchers and bank payment vouchers. A cash payment voucher denoted all the payment of cash and the latter indicated the payment made by cheque or demand draft. No cash dealing comes in this voucher, rather all the payments are made through the bank.

  1. Non-Cash or Transfer Voucher or Journal Voucher

A non-cash or transfer voucher which is also known in the name journal voucher is used for all non-cash transactions. These are used as documentary proof. For example: after goods are sold on credit, the cash or the bank account of the assessee is not affected. In such cases, the voucher will debit the Debtor to whom the goods are sold on credit. And the sales on the credit account will be credited.

  1. Supporting Voucher

A supporting voucher is written evidence of the transactions that happened in the past. For instance, you can attach the bill of expenditure with the original voucher to support the main voucher. A good example of such a supporting voucher is the fuel bills that are attached with the transportation vouchers.


These are some of the main information and guidelines related to accounting vouchers and different types of vouchers in accounting. Every company hires an accountant who can prepare such vouchers in accounting, balance sheet, profit and loss account, and many more. These recordings are extremely essential for any business organization to track all the income and expenditures and to ensure statutory compliances. It also helps all the investors, management, and the government with all the quantitative financial data to make business decisions. 
Besides accounting is a must in every organization even if it is a small company or entrepreneurship. Accounting can keep everything organized and can back up all the tax return claims. Hope this article on vouchers in accounting was informational to you and you might have surely understood the accounting voucher meaning and its uses.

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