Sources of Accounting Vouchers

Meaning of Voucher

Voucher can be any form. It is an evidence for business transaction. It just needs to act as evidence of a transaction not the look of it that matters. They are also called sources of document that help to identify the sources of transactions. 

Accounting reports are taken as truthful financial information; hence all accounting records have to be based on facts and carefully supported by documentary proof. These documents, which provides the authenticity of happening of a transaction and event, are known as source documents. The following major sources of documents are listed as follows:

• Cash Memo: A seller creates cash memo and gives to buyer in the case of cash sales.
  

• Invoice or Credit Bill: A seller creates invoice usually for credit transaction with specific due date for payment.
  

• Receipts: It is a proof of document that state the details of financial transaction that received from sellers or creditors. 

• Payments: It is a proof of document that state the details of financial transaction that paid to customers or debtors.

• Deposit Slip: It is a small physical form from a bank that is used to itemized cheque or cash being deposited into a particular bank account.
  

• Cheque: It is a document that orders the bank to pay the specific amount of money from specific person's account to the person whose name is written over the cheque.
  

• Debit Note: It is issued from buyers to the seller to request the return of fund due to incorrect invoices or damaged goods or purchase cancellation or any other specific circumstances.
  

• Credit Note: It is issued from seller to the buyer to request the return of fund due to incorrect invoices or damaged goods or sales cancellation or any other specific circumstances.

• Bank Statement: It is a history of financial transaction in a bank account in a specific period of time. etc.

Types of Vouchers

Basically there two types of vouchers are listed as below:

1. Source Vouchers: Those vouchers which are dealing with the transaction. It is prepared by maker (seller).

2. Accounting Vouchers: Those vouchers which are dealing with recording the transactions from sources vouchers. It is prepared by an Accountant. 

Role of Sources of Documents in Accounting

The following are the roles of Sources of Documents in Accounting listed as bellows:

1. Recording basis

2. Authenticates the amount paid or received

3. Evidence in the court of law

4. Basis for taxation

5. Information about make, quantity, and values

6. Proof of payment or receipt

7. Basis for adjustments

8. Details about cheques

9. Basis for reminders

Difference between Transactions and Events

• Transactions: It is the exchange of values and creation of obligation by the entity. For example: Sales, Sales return, Purchase, Purchase return, wages, salaries etc.

• Events: It is an occurrence having financial implications which have a bearing on the finance of the reporting entity. For Example: Depreciation, Loss of goods by fire, Gain on sales of assets, Loss on sales of assets, Discount received, Discount Allowed etc. 

Conclusion

Voucher can be any form. It is an evidence for business transaction. It just needs to act as evidence of a transaction not the look of it that matters. These documents, which provides the authenticity of happening of a transaction and event, are known as source documents. Basically there two types of vouchers include source and accounting vouchers. Transaction is the exchange of values and creation of obligation by the entity whereas an event is an occurrence having financial implications which have a bearing on the finance of the reporting entity.

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