Voucher Concepts and Types PDF

## 4.7 Voucher ### 4.7.1 Concept of Voucher Any document which supports the transactions recorded in the books of accounts is called a voucher. In other words, a voucher is a documentary evidence of the transaction taken place. Voucher is the basis for accounting entries. It contains important info...

## 4.7 Voucher ### 4.7.1 Concept of Voucher Any document which supports the transactions recorded in the books of accounts is called a voucher. In other words, a voucher is a documentary evidence of the transaction taken place. Voucher is the basis for accounting entries. It contains important information regarding the date of transaction, the parties associated, amount of the transaction as well as the authorisation backing the transaction. ### 4.7.2 Examples of Vouchers For every entry in the books of accounts, there should be a voucher supporting it. Receipt, invoice, cash memo, debit note, credit note, account sales, correspondence, counter-foils of cheque book & pay-in-slip, bank pass book, dividend warrant, wage sheets, agreements, a copy of purchase order, material requisition, minutes, resolutions are some examples. ### 4.7.3 Features of valid Vouchers In general, a valid voucher should have the following features: | Feature | Description | |---|---| | **Date** | Every voucher must have a date. | | **Client's Name** | All vouchers must be in the name of the organisation or the client. | | **Serial Number** | A voucher must have a serial number. | | **Description of Transaction** | Every voucher must contain the description of one transaction only. | | **Amount** | The amount written in the voucher must be same in words and in figures. | | **Clarity** | Voucher must be flawless. That is to say, hazy or incomplete writings must not be included in the voucher. | | **Signature** | Every voucher must be approved with signature by the competent authority. | | **Countersign in Care of Alteration** | If there is any alteration/correction performed on the voucher, it should be countersigned by competent authority. | | **Printed Vouchers** | Should preferably be printed. | ### 4.7.4 Types of Voucher On the basis of originality, voucher can be of two types: * **Primary Vouchers** Written evidence in original is said to be the primary voucher. For example, invoice for a purchase. * **Collateral Vouchers** When the original voucher is not available, copies thereof are produced in support of the transaction. Such a voucher is usually known as a collateral voucher. For example, photo copy of demand drafts, counterfoil of pay-in-slip, etc. On the basis of sources of documents, vouchers can again be of two types: * **Internal Vouchers** Vouchers originating within the organisation are known as internal vouchers. For example, sales invoices, material requisition slip, goods received notes, etc. * **External Vouchers** Vouchers originating from the outside sources are known as external vouchers. For example, bank statement, confirmation from customers and suppliers, etc. ### 4.7.5 Duties of an Auditor for Missing Vouchers In the course of the audit, the auditor may find some vouchers missing. He must make a list of all the missing vouchers and should take the following steps in this regard: * **Non-availability of Vouchers** Sometimes it is very difficult to collect some vouchers. For example, the vouchers of rickshaw-fare, taxi fare, retail purchase of some items, etc. In such cases the auditor has to exercise his judgement according to the circumstances. * **Taking Note of Missing Vouchers** Details of missing vouchers should be recorded in the audit note book. * **Explanation from Person Responsible** If any voucher is missing, the official concerned should be asked to give proper explanation. If no satisfactory explanation is received, it should be further investigated. * **Missing Vouchers that are Important** If the transactions are important, and the supporting vouchers are lost, then the auditor must enquire into the causes of loss of such vouchers. * **Duplicate Vouchers** In some special cases, the duplicate of the original voucher is to be procured. * **Verification of Accounting Entries Made from Duplicate Vouchers** In case any transaction is recorded in the books of accounts based on duplicate voucher, the auditor must see whether the original voucher was recorded earlier to rule out recording of the same transaction twice. * **Verification of Stores** In case of purchase of goods, if the voucher is not found, then the auditor should see whether the goods are stored, or issued to production department, or re-sold, or included in the closing stock. * **Statement of Lost Vouchers Signed by High Officials** For all the lost vouchers, the auditor should make a statement. The statement must be signed by the higher officials of the management. * **Declaration from Management** The auditor should also obtain a declaration from the management that the transactions pertaining to the missing vouchers are real and are undertaken in the interest of the organisation.