Types of Vouchers

As and when a transaction takes place, a certain document evidencing the same is created, which is called a source document, and one such source document is a ‘Voucher’. It is the written proof that the financial transaction has occurred and these are used to support the entries reported in the account books.

Types of Vouchers

There are mainly two types of vouchers:types-of-voucher

Supporting Voucher

Such vouchers come into being at the time of transaction and so these are called the source or supporting vouchers. These vouchers are the written documentary proof of the business transaction in support of the transaction that has occurred and so entries are made in the books of account using source vouchers. These are of two types:

  • External Supporting Voucher: An external voucher is one that is written by a third party and delivered to the firm. For example Bills of Exchange, Cash Memo and Invoice received from the supplier, rent receipt, debit note, credit note, etc.
  • Internal Supporting Vouchers: When the voucher is created by the firm itself, but its validation is performed by a third party like counterfoils of pay-in-slips, on which stamp is affixed by the bank and it bears the signature of the bank officer and counterfoils of challan for advance tax payment.

Accounting Vouchers

Accounting Vouchers are the secondary vouchers that are prepared with the help of supporting vouchers issued by a third party. These vouchers ascertain the posting of transactions, i.e. if the posting has to be done on the debit side or the credit side of the account. Such vouchers are prepared by the accountant and must bear the signature of the authorized officer of the firm. These are for both cash and non-cash transactions.

Cash Vouchers

Cash vouchers as the name suggest are prepared as documentary evidence for cash receipts and cash payments. These are further classified as – Debit Voucher and Credit Voucher.

Debit Vouchers: Such vouchers support cash payments and thus prepared for recording transactions that are related to cash outflows such as purchases of goods, acquiring fixed assets in cash, purchase of investment in cash, payment made to creditors, granting loans and advances to employees and other parties, cash payment of salaries repayment of loans and advances, cash deposits to the bank.

Whenever there is a cash payment, one facet is the cash while the other facet is the party concerned, to whom the payment has been made.

Contents of Debit Voucher

  • Name and address of the organization
  • Date on which voucher is prepared
  • Voucher number
  • Title of the account debited
  • Amount of Transaction
  • Brief Description of the transaction
  • Signature of the person preparing the voucher
  • Countersigned by the authorized officer
  • Supporting voucher number

Note: It must be noted here that when no supporting voucher is present then in such case the receipt section of the debit voucher is filled in and used as the supporting voucher.

Credit Vouchers: Unlike debit vouchers, credit vouchers support cash receipt and so they are prepared when the transactions are related to receipt of cash such as cash sales of goods, cash receipt of interest and rent, cash sales of fixed assets, cash received from account receivable, cash sale of investments, receipt of the amount due to employees as loan, cash withdrawn from the bank, etc.

Whenever there is a cash receipt, there are two facets, one of which is cash and the other is the party concerned, who has received the cash.

Contents of Credit Vouchers

  • Name and address of the organization
  • Date on which voucher is prepared
  • Accounting voucher number
  • Name of the account credited
  • Transaction amount
  • Description of the transactions
  • Signature of the person making it.
  • Countersigned by the authorized officer
  • Supporting voucher number.

Non-Cash Vouchers

Non-Cash Vouchers are the vouchers prepared for supporting non-cash transactions such as credit sales of fixed assets, credit sales of investments, purchase of goods on credit, writing off depreciation, writing off bad debts, return inward or outward. Credit note, debit note, invoices, bills, etc. are examples of non-cash vouchers.

These are also termed transfer vouchers. Such vouchers are designed in both forms i.e. debit and credit simultaneously.

Contents of Non-Cash Vouchers

  • Name and address of the firm
  • Date on which voucher is prepared
  • Accounting voucher number
  • Name of the account which is to be debited or credited
  • Transaction amount
  • Supporting voucher number
  • Signature of the person who prepares it
  • Countersigned by the authorized officer
  • Brief description of the transaction

Wrap Up

A voucher is nothing but a document that consists of all the details of the monetary transaction that have taken place during the course of business. The format of the vouchers is based on the nature requirement and convenience of the firm. And so, there is no prescribed format for the vouchers.

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