Accountancy · Ch 3 — Recording of Transactions - I
Preparation of Accounting Vouchers
Preparation of Accounting Vouchers
Accounting Vouchers: The Source Document for Recording
Every business transaction must be supported by a written document before it can be recorded in the books of account. That supporting document is called an accounting voucher. It is the evidence that a transaction actually took place and provides the details needed to decide which accounts to debit and which to credit.
Accounting vouchers are classified into several types based on the nature of the transaction they represent: cash vouchers, debit vouchers, credit vouchers, journal vouchers, and others. There is no single, fixed format that every business must follow. The design of a voucher depends on the nature, requirement, and convenience of the business. However, certain essential elements must be present in every accounting voucher.
Accounting vouchers must be preserved until the audit of the accounts and the tax assessments for the relevant period are completed. They are legal evidence of transactions.
Essential Elements of an Accounting Voucher
Every accounting voucher, regardless of its type, must contain the following:
- Written on good quality paper
- Name of the firm printed at the top
- Date of the transaction (not the date of recording) filled in against the 'Date' field
- Voucher number in serial order
- Name of the account(s) to be debited or credited
- Debit and credit amounts written in figures
- Description (narration) of the transaction, given account-wise
- Name and signature of the person who prepared the voucher
- Name and signature of the authorised person (who approves the voucher)
Types of Accounting Vouchers
The classification of vouchers depends on whether the transaction involves one debit and one credit, or multiple debits and/or credits.
1. Transaction Voucher (Simple Voucher)
A transaction that involves one debit and one credit is called a simple transaction. The voucher prepared for such a transaction is known as a Transaction Voucher.
The format of a simple transaction voucher is shown below:
| Transaction Voucher | |
|---|---|
| Name of Firm : | |
| Voucher No : | |
| Date : | |
| Debit Account : | Amount : |
| Credit Account : | Amount : |
| Narration (i.e. Explanation) : | |
| Prepared By : | Authorised By : |
2. Compound Voucher
A transaction that involves multiple debits/credits and one credit/debit is called a compound transaction. The voucher prepared for such a transaction is called a Compound Voucher.
Compound vouchers are of two types:
(a) Debit Voucher – Used when there are multiple debit accounts and a single credit account.
Debit Voucher
| Field | Detail |
|---|---|
| Name of Firm : | |
| Voucher No : | |
| Date : | |
| Credit Account : | Amount : |
Debit Accounts
| S. No. | Code | Account Name | Amount | Narration |
|---|---|---|---|---|
Prepared By : Authorised By :
(b) Credit Voucher – Used when there are multiple credit accounts and a single debit account.
Credit Voucher
| Field | Detail |
|---|---|
| Name of Firm : | |
| Voucher No : | |
| Date : | |
| Debit Account : | Amount : |
Credit Accounts
| S. No. | Code | Account Name | Amount | Narration |
|---|---|---|---|---|
Prepared By : Authorised By :
3. Complex Voucher / Journal Voucher
A transaction that involves multiple debits and multiple credits is called a complex transaction. The voucher prepared for such a transaction is known as a Complex Voucher or Journal Voucher.
Journal Voucher
| Field | Detail |
|---|---|
| Name of Firm : | |
| Voucher No : | |
| Date : |
Debit Accounts
| S. No. | Code | Account Name | Amount | Narration | …