Voucher

A transaction is recorded in the books of accounts only when there is some written evidence to support it. That written evidence is called a voucher.

A voucher is the documentary proof that a transaction has actually taken place. Without a voucher, an entry in the books has no legal or factual backing. For example, when you buy goods for cash, the shop gives you a cash memo — that cash memo is the voucher. If you buy goods on credit, the seller sends you an invoice or a bill — that invoice is the voucher. When you make a payment, you get a receipt — that receipt is the voucher.

Vouchers can be of two types:

• Cash vouchers — for transactions involving immediate cash (e.g., cash memo, receipt for cash payment).
• Non-cash (or credit) vouchers — for transactions where payment is deferred (e.g., invoice, credit note, debit note).

The voucher serves as the source document from which the accountant prepares the journal entry. It contains all the necessary details: date, amount, parties involved, nature of the transaction, and signatures or stamps of the authorised persons.

Accounting treatment: The voucher itself is not an account — it is the evidence. The accounting treatment (which account is debited and which is credited) is determined by the nature of the transaction described in the voucher. For instance, if the voucher is a cash memo for the purchase of goods for cash, the journal entry will be:

If the voucher is an invoice for credit purchase, the entry will be: …