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Accounting

Guide to Accounting Voucher

accounting voucher

What is accounting voucher?

An accounting voucher is any written documentation supporting entries recorded in the accounting books. A voucher is considered a document that shows the goods purchased or the services are delivered are paid. The payments are recorded in the respective ledger accounts. The accounting vouchers are useful for upholding a higher level of control over the payment process. Another advantage of a voucher is that it can be pre-numbered which makes the auditing easier. Read this article to know more about accounting vouchers.

Why are accounting vouchers prepared?

Every accountant needs to create a voucher when an invoice is received from a supplier and payment has been done for that invoice. These vouchers are basically attached with the supporting documents related to any payment and added to the respective ledger file.

Moreover, accounting vouchers are a source document and proof of transactions that take place in a business. Later, when auditing happens every year, these vouchers in accounting play a very essential role. It acts as audit evidence for external auditors. It also helps the business owner to understand every transaction of the company.

How to prepare an accounting voucher 

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 (where the brief description of the transaction is recorded)
  • Space for signature of accountant
  • Signature of manager or authorised person
  • 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, signature)
  • All the supporting documents must be approved by an authorised person
  • The accountant should select the type of voucher to be used for preparing the transaction
  • The accountant must make sure that the voucher’s debit and credit sides are balanced

Moreover, an accountant must allot the correct account head to avoid any kind of mistakes in recording the transactions.

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 voucher 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 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 denotes all the payment of cash and the later indicates the payment made by cheque or demand draft.

  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 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.

Conclusion

Every company hires an accountant who can prepare such vouchers for accounting purposes. These recordings are extremely essential for any business organisation to track all the income and expenditures and to ensure statutory compliances.

Besides accounting is a must in every organisation even if it is a small business. Accounting can keep everything organised 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 meaning of the accounting voucher and its uses.

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