What is a Voucher: Benefits, Types and Components

What is a voucher?

An accounting voucher is a document supporting the accounting book entries. Once the supplier receives the payment, the voucher is marked as ‘paid,’ and the payment is recorded in the relevant ledger accounts. Accounting vouchers help maintain better control over payments. They can also be pre-numbered, making it easier to audit the records.

Types of accounting vouchers

Here are some of the most common types of vouchers.

1. Receipt Voucher
   A receipt voucher is used to record cash or bank receipts. A cash receipt voucher contains information regarding the receipt of cash in hand. On the other hand, the bank receipt voucher indicates receipt of a cheque or DD (demand draft), meaning the money is not received in cash; all the transactions have been done through bank transfers, checks, or DD.
2. Payment Voucher
   A payment voucher is the opposite of a receipt voucher, as the receipt voucher depicts the inflow of funds, while a payment voucher represents the outflow of funds. There are two different types of payment vouchers: cash payment vouchers and bank payment vouchers. A cash payment voucher indicates all cash payments, while the latter shows payments made by cheque or demand draft.

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3. Journal Voucher
   A journal voucher is used for all non-cash transactions and serves as documentary proof. For instance, after goods are sold on credit, the cash or bank account is unaffected. The voucher will debit the debtor to whom the goods are sold on credit, and the sales on the credit account will be credited.
4. Contra Voucher
   A contra voucher records internal transfers between accounts, such as depositing cash into a bank account. This voucher doesn’t affect the overall financial position, but it helps monitor account balances.

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5. Debit Voucher
   A debit voucher records expenditures or amounts owed by the business. It’s used for credit purchases or account adjustments, simplifying expense tracking.
6. Credit Voucher
   Credit vouchers are used when the business receives credit, such as for refunds or returns. They help adjust accounts and keep track of money owed or refunded.
7. Stock Voucher
   A stock voucher records goods in and out of the business, including inventory received, sold, or transferred between different locations. This voucher ensures that the inventory records remain accurate and up to date.

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8. Expense Voucher
   Expense vouchers contain business-related expenses, such as office supplies, travel, and bills. It includes the amount spent and a description of the cost. These vouchers help businesses maintain accurate records of financial transactions, ensuring everything is documented and tracked correctly.

How to prepare an accounting voucher

An accountant has to prepare accounting vouchers for a company using the source document, which is the papers associated with a business transaction.

Such documents include cash memos, bills, bank deposit slips, receipts, chequebook counterfoils, challans, and other information demonstrating the existence of a transaction in an organisation. A voucher usually contains the following information.

• Serial number of voucher
• Type and Date of Voucher
• Debit and Credit Column
• Amount in both figures and words
• Total Column
• Particulars column (a brief description of the transaction)
• Signature of accountant
• Signature of manager or authorised person
• Signature of receivers in case of bank payment voucher or cash payment voucher