Discussion the Voucher in Accounting.

Voucher in Accounting; Each transaction is recorded in books of accounts providing all the required information of the transaction. Since each transaction affects the financial position of the business, there should be documentary evidence to establish the monetary accounts at which transactions are recorded and also the transactions are properly authorized.

The common documents that are generally used are as under:

1. Payment voucher.
2. Receipt voucher, and.
3. Transfer voucher.

Now, explain each;

Payment voucher:

A Payment voucher usually on a printed standard form, is a record of payment. When payment is made for an expense, generally a bill is prepared to record full particulars of the claim by the person or organization receiving payment.

From the bill, the accounting department prepares a voucher for each payment to be made, no matter whether the amount that is paid for the goods purchased or to pay employee’s salaries, or to pay for services or to pay for any other asset acquisition.

Receipt voucher:

A Receipt voucher is a document which is issued against cash receipts. It may also be a printed standard form. This document shows that a certain sum of money was received from a person or organization and also, contains information about the purpose for which the money is received.  It is signed by a responsible employee, authorized by the management to receive the money.

Transfer voucher:

A Transfer voucher is used to record the residuary transactions. An internal transaction or a transaction not involving any cash payment or cash receipt is recorded in the transfer voucher. Examples are Goods purchased on credit; depreciation of assets, outstanding expenses, accrued income, etc.