ost Voucher Approach in Accounting lL Source Documents It is a written document which contains details of the trans: entered into. It is also referred to as supporting evidence. It is of prime importance books of accounts, transactions are recorded on the basis of an evidence. The the basis of recording entry are known as source documents e.g. bills of pure! sales, debit and credit notes, etc. x Cash Memo It is prepared by the seller, for goods sold against cash. Cash memo acts as an evidence for both the seller and purchaser of goods. For the purchaser, for goods purchased against cash and for the seller, for sales made for cash. It contains details of goods sold, quantity, rate, total amount received, date of transactions, etc. Invoice or Bill It is prepared by the seller, for goods sold against credit. It contains details such as party to whom goods are sold, quantity of goods and the total sale amount. One prepares an invoice but receives a bill. These two terms are interchangeable and mean the same thing. Pay-in-Slip It is used for depositing cash or cheques into bank. It is a form which is available from a bank having a counterfoil which is returned to the depositor with cashier's signature, as receipt. The counterfoil gives details regarding the date and the amount (in cash or cheque) deposited. Cheque As per Negotiable Instruments Act, “A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable, otherwise than on demand and it includes the of a truncated cheque and a cheque in electronic form. Debit Note A debit note is made out evidencing that a debit has been made to the account of the party named in the debit note. It details the reason for the debit. The effect of a debit note is that the indebiness to the supplier is reduced or, if the account is already settled, goods chased further without further payment, rs Credit Note A credit note is made out evidencing that credit has been granted to a debtor. The effect of a credit note is that the amount of the costumer’s indebtness is reduced or, if it is alre: dy settled, to enable the customer to purchase goods to the value of credit Without further payment tions prepared at the time, it is sin the being ‘ctronic image n_be pur- Scanned with CamScanner8. Vouchers It is a document evidencing a business transaction. A voucher dealing the accounts that are debited and credited is prepared, on the basis of source documents such as cash memo, invoice or bill, receipt, pay-in-slip, cheque, debit and credit notes, etc. 9. Types of Vouchers Basically, vouchers may be classified into two categories as follow: i, Supporting vouchers These are also known as source documents. These are the documents which come into existence when a transaction is entered into. ii, Accounting vouchers Accounting vouchers are the secondary vouchers. These vouchers are a written document prepared on the basis of supporting vouchers for accounting and record- ing purposes, prepared by an accountant and countersigned by an authorized person. These accounting vouchers are prepared for cash as well as non-cash transactions. Accounting vouchers may be classified into two categorized as follow: a. Cash Vouchers: Vouchers which are prepared at the time of receipt or payment of cash are known as cash vouchers. It includes receipt and payment through cheques. Cash vouchers further can be of the following two types: + Debit voucher: These are prepared to record the transactions involving cash payments, ice. when payment is made. * Credit voucher: These are prepared to record the transactions involving cash receipts, i.e. when cash is received. 10. Complex Voucher and Compound Voucher Complex voucher/Journal youcher: Transactions with multiple debits and multiple credits are called complex transactions and the accounting vouchers prepared for such transactions is known as complex voucher/journal voucher. Compound voucher: Vouchers which record transactions with multiple debits/credits and one credit/debit are called compound vouchers. Compound vouchers are of two types: j. Debit voucher: Vouchers showing transaction that contains multiple debits and one credit is called debit voucher. 5 ii. Credit voucher: Voucher showing transactions that contains multiple credits but one debit is called credit voucher. 11. Preparation of Vouchers ; ‘ There is no set format of an accounting voucher. The design of the accounting vouchers de- pends upon the nature, requirement and convenience of the business. To distinguish various vouchers, different colour papers and different fonts of printing are used. Scanned with CamScannerLTIPLE CHOICE QUESTIONS 1. Process of checking the evidence of the 4. Vouching helps the auditors to ascertain entries called . whether the entries in the book __, this (a) Verification _(b) Observation is the basic objective of auditing. (c) Vouching (d) Inspection (a) Trueand fair (b) Only true 2. To verify cash transactions, it is necessary (c) Only fair (d) None of the above (a) System of internal control 5. Voucher should be addressed to the (b) Check all transaction (a) Auditor (b) Client (c) Documentary evidences for every (c) Employee (a) None of the above transaction 6. Serial number of vouchers should (d) all of the above. be y 3. Total amount spent for advertisement (a) Colored (b) Continuous. expenses be verified from the (c) Even number (d) Odd number. (a) Receipts from the media or advertisement agency. (b) Fixed assets register (c) Debtors books (a) None of the above. eo__ ANSWERS Mo) 2) 3.@) 4a) 5.) 6.06) Scanned with CamScanner