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Vouchers

Kinds and Requisites of Vouchers

By -

Jai(20-UCC-004)

Rayyan(20-UCC-005)

Vouchers

What are vouchers and how do they look like?

Definition

Accounting entries made in the books must be supported by documentary evidence and inspection of that evidence is called vouching.

The Auditor judges the authenticity, of the accounting entries using the technique of vouching.

In case of unavailability of proper supporting documents, the Auditor may have all reasons to doubt about errors or fraud or manipulation.

Examples

Types of vouchers

Kinds of Vouchers

There are 4 major types of vouchers.

They are -

  • Purchase Voucher
  • Sales Voucher
  • Journal Voucher
  • Supporting Vouchers

Definition

Purchase Voucher

Purchase voucher records the transaction of purchase of goods and services in an organisation.

The purchase transaction may be through cash or bank or on credit. The relevant supplier is credited when the purchase happens on credit.

Purchase order, supplier slip, and other documents relevant to the required purchase are issued.

Example

Definition

Sales Voucher

Any sales transaction for the goods and services is passed through a sales voucher.

The sales voucher is prepared to record the cash and credit sales performed in the organisation.

The sales voucher is the proof and acts as evidence of the sales transaction for goods and services in the organisation.

Example

Definition

Journal voucher

Journal vouchers are also known as transfer vouchers or non-cash vouchers. All the transactions that do not involve cash or bank transactions or inflow and outflow of amounts are passed through journal vouchers.

They are authentic documentary proof for the financial transaction.

For instance, when the goods are sold on credit and there is no immediate cash or bank transaction, the journal voucher is prepared for such a transaction.

Examples

Definition

Supporting Vouchers

Any transaction that has been undertaken in the organisation in the past is documented through a supporting voucher.

It is written documentary proof for the past events in an organisation.

For example, to support the main voucher, supporting vouchers are attached with the expense bill. Supporting vouchers such as fuel bills can act as proof of the transportation of an employee.

Requisites of Vouchers

Requisites of Vouchers

There are certain requirements/requisites which are imposed regarding the type of information a voucher should contain.

The auditor checks for these requirements to approve a particular voucher.

Correct accounts

Correct Accounts

The auditor can check the accounts debited and credited are correct in all respects.

The rules of debit and credit should be followed for dividing the transactions into accounts.

Mistakes in these may cause delays in auditing process.

Thus, the company must always ensure that it has made changes to the correct accounts

throughout.

Agreements

The auditor will always examine the agreements, correspondence and other papers relating to business activities.

Such agreement provides basic information to the auditor. They can vouch the transactions based on such agreements.

An agreement provides the base for the legality of the transactions.

Voucher numbering

Vouchers must be systematised in a way which makes it possible to check that the accounts are complete.

Vouchers must be consecutively numbered, without any gaps in the number series.

If there are any gaps in the number series, the company must explain why using relevant proofs attached.

Other details

  • Supplier identification number

  • The amount payable

  • The date on which payment will be made

  • The accounts payable to record the liability

  • Any valid early payment discount terms

  • The approval signature or stamp
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