A voucher is an important document of financial accounting. A voucher in Accounting is defined as a document used by the accounts department of an entity that contains documents related to an invoice. It can be simply stated as backup documents for a bill. A voucher may contain documents such as the general ledger accounts, supplier’s invoice, shipping receipts, the amount owed and the due date etc. Furthermore, it is used everywhere in private and public businesses as well as government businesses.

Types of Accounting Vouchers

• Supporting voucher

These vouchers are created during the transaction and hence are known as a source or supporting vouchers. These vouchers are written documentary proof of the business transaction in support of the transaction that has occurred. These are also subdivided into two types – 

1. Internal supporting vouchers
2. External supporting vouchers

• Non-Cash or Transfer voucher (Journal voucher)

Non-Cash Vouchers are vouchers prepared to support non-cash transactions such as credit sales of investments, credit sales of fixed assets, credit purchases of goods, depreciation, and return inward or outward.

• Credit or Receipt voucher

Credit vouchers involve cash receipts and are used when transactions involve cash receipt, such as cash received from account receivable, cash sales of goods, cash sale of investments rent, cash sales of fixed assets, cash receipt of interest and receipt of the amount owed to employees as a loan, etc.

• Debit or Payment voucher

Debit or Payment vouchers support cash payments and are thus prepared for recording transactions involving cash outflows such as the acquisition of an investment in cash, acquisition of fixed assets in cash, granting loans and advances to employees and other parties cash payment of salaries, repayment of loans and advances, purchases of goods, payment to creditors, and cash deposits to the bank.

Classification of Vouchers

Vouchers can be classified on two bases – 

• Based on Transaction Recording:

1. Transaction Voucher: Simple transactions have a single debit and credit, and the vouchers prepared for these transactions are Transaction vouchers.
2. Complex Voucher: Complex transactions have more than one debit and more than one credit, and the voucher prepared for the same is known as a complex voucher/journal voucher.
3. Compound Voucher: Transactions with multiple debits or credits and a single debit or credit are referred to as compound transactions, and the vouchers prepared for these transactions are referred to as compound vouchers.

• Based on sources, Vouchers can be divided into 2 types 

1. Primary Vouchers: A primary voucher is written proof that is still in its original form. It could include purchase invoices, cash receipt counterfoils, and so on.
2. Collateral Vouchers: When the original written documentary proof is missing but copies are available, these are referred to as collateral vouchers. Copies of such documents are provided in such cases for auditing purposes. One common example of collateral vouchers is photocopies of the demand draught.

Supporting Documents for an Accounting Voucher

Evidence of payment received

When cash is given to a party, the voucher must include full details such as the amount, purpose, and date of payment received by the party, as well as the receiver’s signature. When making a payment by account payee cheque, however, the receiver’s signature is not required.

Details about the party to be debited

 The component in the vouchers contains the information of the name and address of the company that has completed the transaction and payment has been made. In addition, the payment’s objective and description are entered.

Stamp of Revenue

According to the law, a revenue stamp must be affixed to every voucher containing a payment of Rs. 500 or more. and the recipient of the payment must touch a specific area of the stamp

Name and Address of the company

Every Voucher must have the company’s name and address printed at the top. This addresses the information of which company the financial transaction has been carried out.

Date

A voucher has a specific location to specify the date on the voucher when it was written and when the transaction occurred.

Details about the party to be credited

The payment was made in cash or by check/demand draught. As a result, the cash or bank account is credited, along with the number and date of the cheque and demand draft’s issuance.

Accountant’s signature

The voucher must bear the signature and name of the assigned person of the firm, whether it is an accountant or another officer. After the verification is completed, it must be signed by the company’s owner or another authorised officer.

Voucher Code

To facilitate identification, each voucher has a unique serial number. This also aids in distinguishing them from other receipts and entering their references in the account books. As a result, the vouchers are recorded in the system, and their number is introduced to the posting.

Conclusion

Vouchers are used in everyday tasks in the accounting process in any business. It is an important component since it gets the auditing of a business’s financial performance easier and more effective. It also provides a tracking system for any kind of theft including employee theft.