Q.Preparation of vouchers are based on the following :

Signing on the face or back of a bill to transfer its title is called endorsement, so the answer is (b).

A bill of exchange is a negotiable instrument, and its holder can transfer the amount receivable to another party. Endorsement is the act by which the holder signs on the face or back of the bill (and usually names the person to whom it is transferred), thereby passing the title/ownership of the bill to that person.

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Preparing a voucher draws on documentary evidence, the journal entry and the relevant accounts together.

A voucher is the source document that evidences a business transaction and authorises its entry in the books. It is prepared on the basis of documentary evidence (bills, receipts, invoices), is used to pass the journal entry, and references the accounts involved. Since all of these elements — documentary evidence, the j …