Voucher

What is a Voucher?

A voucher is a document used in accounting to authorize the payment of a liability or verify the receipt of goods. It serves as a receipt for money and supports entries made in an organization’s books of accounts. Vouchers act as the basis for recording financial transactions, ensuring accuracy and providing a trackable audit trail.

Examples of Vouchers

Payment Voucher: When a company makes a payment to a vendor, a payment voucher is prepared. It details the payment, including the amount, date, and reason for the payment.
Receipt Voucher: A document noting the receipt of cash or checks by a company. It is generated when someone pays a company, signifying the transaction for their records.
Journal Voucher: Used to record non-cash transactions, such as depreciation or accrued expenses. It includes journal entries made with substantial backup evidence.
Expense Voucher: Detailed statement for expenses incurred by an employee that are to be reimbursed by the employer. It includes travel expenses, meals, lodging, and other costs.

Frequently Asked Questions (FAQs)

What is the main purpose of a voucher? A voucher serves to document and authorize financial transactions, such as payments and receipts, which ensures the integrity and accuracy of an entity’s accounting records.
What details are usually included in a voucher? A voucher typically includes the date, amount, transaction details, the name of the recipient (for payments), or the payer (for receipts), and any relevant account codes.
Are there different types of vouchers? Yes, there are various types of vouchers, including payment vouchers, receipt vouchers, journal vouchers, and expense vouchers. Each type serves a different accounting purpose.
Why are vouchers important in accounting? Vouchers are important as they provide evidence for each financial transaction, ensuring that records are accurate and can be audited if necessary.
How are vouchers used in internal controls? Vouchers bolster internal controls by ensuring that only authorized transactions are carried out and properly recorded. They help prevent fraud and errors.

Invoice: A document issued by a seller to a buyer, listing the goods or services provided and the amount owed.
Receipt: A written acknowledgment that a specified amount of money has been received as an exchange for goods or services.
Journal Entry: An accounting transaction entered in the general journal. It records the details of a financial transaction in the accounting records.
Ledger: The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit.

Online References

Suggested Books for Further Studies

“Accounting Made Simple: Accounting Explained in 100 Pages or Less” by Mike Piper
“Intermediate Accounting” by Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
“Principles of Accounting” by Belverd E. Needles Jr., Marian Powers, Susan V. Crosson
“Financial & Management Accounting” by BBA Course Experts

Accounting Basics: “Voucher” Fundamentals Quiz

### Who typically issues a payment voucher within a company? - [ ] Vendor - [x] Accounts Payable Department - [ ] Customer - [ ] Human Resources Department > **Explanation:** The Accounts Payable Department typically issues a payment voucher within a company, certifying a transaction before payment is made. ### What information is NOT generally found on a voucher? - [ ] Transaction Date - [ ] Amount - [x] Employee's Social Security Number - [ ] Purpose of Transaction > **Explanation:** Employee's Social Security Number is not generally found on a voucher as it is not relevant to the financial transaction being documented. ### Which type of voucher would be used to log a non-cash accounting entry? - [ ] Payment Voucher - [ ] Receipt Voucher - [ ] Expense Voucher - [x] Journal Voucher > **Explanation:** A journal voucher is used to log non-cash accounting entries, such as depreciation or accrued expenses. ### What is the primary function of a receipt voucher? - [ ] To authorize payment to vendors - [ ] To list goods sold - [x] To record the receipt of cash or checks - [ ] To schedule employee shifts > **Explanation:** The primary function of a receipt voucher is to record the receipt of cash or checks by a company, ensuring accurate record-keeping of income received. ### What ensures the authenticity and accuracy of a voucher? - [x] Proper authorization and supporting documentation - [ ] Handwritten notes - [ ] Company logo - [ ] Sequential numbering > **Explanation:** Vouchers ensure authenticity and accuracy through proper authorization and supporting documentation, verifying the financial transaction before it is recorded. ### Which department is responsible for generating an expense voucher? - [ ] Sales Department - [ ] Marketing Department - [ ] Production Department - [x] Accounting Department > **Explanation:** The Accounting Department is responsible for generating expense vouchers for reimbursed expenses incurred by employees. ### How does the use of vouchers add to internal controls? - [ ] By increasing sales productivity - [x] By ensuring that authorized transactions are properly recorded - [ ] By promoting team collaboration - [ ] By tracking employee performance > **Explanation:** The use of vouchers adds to internal controls by ensuring that only authorized transactions are recorded, thus preventing fraud and errors. ### What is a voucher often used as in the audit process? - [x] Evidence of transactions - [ ] Payroll records - [ ] Marketing materials - [ ] Training manuals > **Explanation:** Vouchers are often used as evidence of transactions during audits to validate the integrity and accuracy of financial statements. ### What does an expense voucher typically not include? - [ ] Date of Expense - [ ] Amount Spent - [ ] Description of Expense - [x] Vendor's Annual Revenue > **Explanation:** Expense vouchers do not include the vendor's annual revenue; they focus on the transaction specifics such as date, amount, and description of the incurred expense. ### Why might a company use numbered vouchers? - [ ] For decorative purposes - [x] To keep a sequential record of transactions - [ ] To indicate payment priority - [ ] For identifying different departments > **Explanation:** Companies might use numbered vouchers to maintain a sequential record of transactions, aiding in better tracking and auditing.

Thank you for diving deep into the world of accounting vouchers. They are essential tools for maintaining financial accuracy and transparency in any organization. Keep expanding your accounting knowledge with continuous learning!