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Business

What is an Accounting Voucher?

PUNJAB NEWS EXPRESS | November 27, 2021 06:55 PM

An accounting voucher is a record that serves as a supporting document for the entries recorded in the accounting books, and it is stamped as 'paid' once the supplier has received the payment. Payments are recorded in the appropriate ledger accounts. There are different types of accounting vouchers that we will go about in the latter part of this article.

 So, to begin with, what is a debit note?

A debit note is a document/voucher given by one party to another stating that the other party's account has been debited in the sender's books.

Components of an Accounting voucher

Accounting vouchers must be prepared for a company by an accountant. The source documents are the documents associated with a business transaction. Cash memos, bills, bank deposit slips, receipts, challans, and other information is proving the existence of a transaction in an organization are examples of such documents.

The voucher includes:

  • Serial number of voucher
  • Type and Date of Voucher
  • Debit and Credit Column
  • Amount in both figures and words
  • Column of Specifics (where the brief description of the transaction is recorded)
  • Space for signature of accountant
  • Signature of the authorized person
  • Signature of receivers (for bank payment voucher.

An accountant must follow specific procedures when preparing a voucher, such as

  • All supporting documents must be thoroughly verified (date, amount, nature of transactions, signature)
  • An authorized person must approve all supporting documents.
  • The accountant should determine the type of voucher that will be used to prepare the transaction.
  • The accountant must ensure that the voucher's debit and credit sides are balanced.

Different types of accounting vouchers

  1. Debit or Payment voucher: It is the supporting documentation that shows that the monetary transaction has occurred.
  • It demonstrates that the company has paid another third party and other parties.
  1. Credit or Receipt voucher: The document proves the company received cash from a customer, bank, or another third party.
  • This voucher can be used for sales cash receipts, share capital injections, bank interest earnings, debtor cash receipts, and cash from other sources.
  1. Non-Cash or Transfer voucher (Journal voucher):

These are vouchers for transactions that do not involve cash flow; they are also referred to as journal vouchers.

  • Deprecation, credit sale, credit purchase, adjustment, and reversing entries are examples.

Benefits

  • To keep control of the payment process.
  • Transactions in business are highly accurate.
  • Many invoices can be paid at the same time (reducing the number of cheques).
  • Invoice approval and payment are separated, making it easier to schedule.
  • This makes it simple to determine the transaction's origin.
  • During a company audit, serve as a critical source of evidence.
  • Reduces the possibility of employees attempting to steal company assets.

Conclusion

Every business has to prepare such vouchers for accounting purposes. These records are critical for any business to keep track of all income and expenses and ensure statutory compliance. Accounting is also required in every organization, even if it is a small one, as it can keep everything organized and provide support for all tax return claims.

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