Voucher in accounting

What is voucher in accounting

A voucher is a written document prepared by the accountant providing the evidence of a business transaction. A voucher is prepared on the basis of source documents viz, cash memo, invoice, pay-in-slip, etc.

Since the shapes, sizes and quality of the source documents vary, it becomes necessary to adopt a standardized and uniform format to record the business transactions.

Types of Vouchers in accounting

The vouchers can be broadly classified into two categories:

(i) Supporting vouchers These are the vouchers which support the transactions. These are also known as source documents and source vouchers e.g. cheque, invoice, cash memo, debit note, credit note, receipt, etc.

Features of Supporting Voucher in accounting

(a) It is a written document.

(b) It act as an evidence of transaction.

(c) It is base for the preparation of accounting voucher.

(d) The auditor examines the entries by checking these supporting documents as evidence for each transaction.

(ii) Accounting voucher It is a written document, containing an analysis of business transactions for accounting and recording purposes, prepared by the accountant on the basis of supporting vouchers and signed by another authorised person.

Features of Accounting Voucher in accounting

(a) Accounting vouchers are prepared in the firm’s name.

(b) It is prepared by the accountant on the basis of source document.

(c) Each such voucher is checked and signed by the authorised officer.

(d) Each such voucher is serially numbered and is attached with source document.

Types of Accounting Vouchers in accounting

(i) Cash vouchers

The vouchers which are prepared to record the payment and receipts of cash are known as cash vouchers:

(a) Debit vouchers The vouchers which are prepared when the payment is made in cash are known as debit vouchers.

Contents

1. Name and address of the organization.

2. Date of preparing voucher.

3. Accounting voucher number.

4. Title of the account debited.

5. Net amount of transaction.

6. Narration (i.e., a brief description of the transaction).

7. Signature of the person preparing it.

8. Signature of the authorised signatory.

9. Supporting voucher number.

10. A document in lieu of supporting voucher.

Examples

■ Purchase of goods for cash.

■ Purchase of assets for cash.

■ Payment of expenses.

■ Payment of loans.

Format of Debit Voucher

(b) Credit vouchers The vouchers which are prepared on the receipt of cash are known as credit vouchers.

Contents

1. Name and address of the organisation.

2. Date of preparing voucher.

3. Accounting voucher number.

4. Title of the account credited.

5. Net amount of transaction.

6. Narration (i.e. a brief description of the transaction).

7. Signature of the person preparing it.

8. Signature of the authorised signatory.

9. Supporting voucher number.

 

Examples

■ Sale of goods for cash.

■ Sale of assets for cash.

■ Receipt of incomes.

■ Raising loans.

Format of Credit Voucher

(ii) Non-cash voucher/ Transfer vouchers

 The vouchers which are prepared for all non-cash transactions are known as transfer or non-cash vouchers.

Contents

1. Name and address of the organisation.

2. Date of preparing voucher.

3. Accounting voucher number.

4. (a) Title of account to be debited.

(b) Title of account to be credited.

5. Net amount of transaction.

6. Narration (i.e. a brief description of the transaction).

7. Signature of the person preparing it.

8. Signature of the authorised signatory.

9. Supporting voucher number.

Examples

■ Purchase of goods on credit.

■ Accrued incomes.

■ Outstanding expenses.

Format of Transfer Voucher