As and when a transaction takes place, specified document demonstrating the same is generated, which is termed assource document, and thatsource document is a Voucher. It is the written proof which afinancial transaction has occurred and these are used to substantiate the entries reported inaccount books.
Accounting Vouchers
Accounting vouchers are generated by the accountant ofcompanyand countersigned by an authorised signatory on the basis of supporting vouchers. It is immediately entered in the books of accounts after it is signed. A Voucher is a document which acts as proof of a business transaction. A voucher, which is sometimes mistaken considered asa bill receipt, can take any form.
Differences Between Vouchers
Cash vs Debit Vouchers
Debit Voucher or Payment Voucher
A payment voucher is another name for a debit voucher. Debitvoucher is used when a company pays someone else for things like salary and wage payments, raw material payments, loan repayments, and so on. These payments can be made in cash or via bank transfer. As a result, both Cash and Bank Payment Vouchers will be handled as debit vouchers.
Cash Voucher
A cash voucher is a common form for recording petty cash transactions. When someone wishes to take money out of the petty cash fund, they fill out a cash voucher stating the cause for the withdrawal and receive money frompetty cash custodian in return. Whenthe individual requesting cash is looking for reimbursem*nt for an expense they had paid for with their own money, they should also attach the original purchase receipt to the cash voucher. After that, the vouchers are kept as accounting records.
Credit vs Journal Vouchers
Journal Voucher
A journal voucher is a document where the key details of an accounting transaction are recorded. The transaction date, transaction amount and transaction description are all included on this voucher. It also includes the accounts that have been impacted, as well as supporting documentation and signatures.A journal voucher is a formal authorization to make a transaction entry that auditors evaluate as part of their audit procedures.
Receipt Voucher or Credit Voucher
A receipt voucher ismanually written receipt for the sale of services or commodities. This is frequently substituted for a printed receipt. Taxis, construction materials, equipment rentals, and labour services are all common receipts. For auditing reasons, vouchers are regarded as an appropriate record of expenses.
Documents attached with the credit voucher are as follows:
Cash receipt
The cash receipt can be in the form of a check, cash, or a bank transfer. We’ll need a copy of supporting documentation, just like we’ll need a copy of a debit voucher, to confirm that cash has been received.
Contract
A copy contract should be attached to any transaction involving capital injection or construction revenue.
Elements of Credit Voucher
Elements of credit vouchers are given as:
- Name and address of organization.
- Date of preparation of voucher.
- Number accounting voucher
- Name of account credited
- Amount of Transaction
- Description of transactions
- Signature of the person making it.
- Countersigned by authorized officer
Supporting Voucher
Thesupporting or sourcevouchers are created at the moment of the transaction. Supporting vouchers arewritten documentary proof of the business transaction in support oftransaction which has occurred.Source vouchers are used to make entries in the books of account.
Importance of Accounting Voucher
- Accounting vouchers play a critical part in all types of auditing and control procedures. Through audit methods, the accuracy of data and information in an organization’s financial accounts is confirmed and authenticated. With the vouchers in place, conducting the audit process and authenticating the transactions becomes simple and straightforward. The documentation of the transaction which are executed in the organisation require and justify vouchers.
- The vouchers also serve as a control and audit trail for the organization’s transactions. It lowers the chances of any form of misbehaviour in the workplace. The vouchers are a type of paper trail that connects to the transaction, the persons involved, and the responsibilities they are responsible for.
Conclusion
Accounting vouchers are generated by the accountant ofcompanyand countersigned by an authorised signatory on the basis of supporting vouchers. Debitvoucher is used when a company pays someone else for things like salary and wage payments, raw material payments, loan repayments, and so on. A cash voucher is a common form for recording petty cash transactions. A journal voucher is a formal authorization to make a transaction entry that auditors evaluate as part of their audit procedures. Vouchers might assist you in keeping a good controlon your payables process. A large number of bills can be paid at a time, whichreducesthe number of cheques needed.
