Steps to Prepare a Voucher in Accounting
Preparation of vouchers is a fundamental accounting process that involves creating official documents as proof for financial transactions. This topic is essential for school exams, competitive commerce exams, and real-world business practices, as it ensures that every transaction is recorded and traceable.
| Type of Voucher | Main Purpose | Examples |
|---|---|---|
| Cash Voucher | Recording actual cash receipts or payments | Receipt voucher, Payment voucher |
| Non-Cash (Transfer) Voucher | Documenting non-cash (credit/transfer) entries | Credit purchase/sale, Depreciation |
| Journal Voucher | Adjustments not involving cash | Bad debts written off, Accrued expenses |
| Compound Voucher | Multiple debits or credits in one transaction | Salary paid with deductions, Bulk purchases |
| Complex Voucher | Multiple debits and credits together | Asset exchange, Mixed-type sales/purchases |
Preparation of Vouchers in Accounting
The preparation of vouchers in accounting is the systematic recording of business transactions using official forms. Each voucher verifies a transaction by recording important details such as amount, date, accounts affected, and attaching supporting documents. This process strengthens the accuracy and transparency of accounting records, crucial for error-free books and successful audits.
Source Documents vs Vouchers
Source documents are the original papers that start a financial transaction, like invoices or receipts. Vouchers are prepared using these source documents and summarize the transaction for accounting entries. For example, an invoice (source document) leads to the creation of a payment voucher (voucher) for recording in the books.
Steps to Prepare a Voucher
Following correct steps helps ensure reliable voucher entry and audit readiness. The main steps in preparation of vouchers are:
- Identify the transaction and collect all relevant source documents.
- Enter details into the voucher: date, amount, parties involved, and purpose.
- Attach supporting documents (invoices, bills, etc.) to the voucher.
- Get the voucher approved with authorized signatures.
- Record the voucher entry in the accounting books.
Example of Voucher Preparation
Suppose a company pays ₹5,000 in cash for office supplies. The accountant collects the invoice (source document), fills a payment voucher for this amount, attaches the invoice, gets approval, and then records it in the ledger accounts.
Voucher Format with Example
| Voucher No. | Date | Account Debited | Account Credited | Amount (₹) | Narration | Authorized By |
|---|---|---|---|---|---|---|
| PV-001 | 01-07-2024 | Office Supplies | Cash | 5,000 | Paid for office supplies as per invoice #234 | Manager |
Preparation of Vouchers in Tally & Computerized Accounting
In modern business, vouchers in accounting software like Tally or ERP systems are created digitally. This streamlines the voucher creation process, reduces manual errors, and ensures that data is stored securely. Vouchers entered in software are instantly linked to the related ledger accounts and trial balance for fast reporting.
- Tally offers pre-defined voucher types (payment, receipt, journal, etc.).
- Each entry requires digital authorization and attachment of soft copies of documents.
- Computerized vouchers have easy search, filter, and audit trail features.
Importance of Voucher Preparation for Auditing and Controls
Preparation of vouchers is vital for building a paper trail of business transactions. Properly prepared vouchers improve internal controls by preventing fraud and human errors. They are also necessary during external and internal audits, as auditors rely on vouchers to verify the legitimacy and accuracy of financial records. This is core to a business’s credibility and compliance.
How the Preparation of Vouchers Helps Students
Understanding preparation of vouchers is essential for scoring in school and competitive exams. The topic develops practical accounting skills that are used in bookkeeping, business management, and everyday commerce. It also prepares students for real-world business roles and higher education in finance and accounting process.
At Vedantu, we help students learn voucher preparation with examples, simple steps, and practical illustrations to build strong accounting foundations.
Summary
Preparation of vouchers is the process of documenting every business transaction with a formal proof. It ensures accuracy, supports audit trails, and helps prevent mistakes or frauds. Learning this topic prepares students for exams and for real-life accounting, especially with software like Tally. Practice with real examples boosts confidence and improves results.
FAQs on Preparation of Vouchers: Meaning, Types & Process in Accounting
1. What is the preparation of vouchers in accounting?
Voucher preparation in accounting is the process of creating written evidence for all financial transactions. It involves creating documents that support entries in the books of accounts, allowing businesses to trace every transaction. Accurate voucher preparation ensures reliable financial records and audit readiness.
2. What documents are required to prepare a voucher?
The documents needed to prepare a voucher depend on the type of transaction. However, common supporting source documents include invoices, receipts, bills, bank statements, and delivery notes. These documents provide evidence of the transaction and support the information recorded on the voucher.
3. How is a voucher different from a source document?
A source document is the original record of a transaction (e.g., a sales invoice). A voucher is a formal record summarizing the transaction details from the source document. The voucher is used for accounting entries, while the source document acts as its supporting evidence.
4. How do you prepare a payment voucher step by step?
Preparing a payment voucher involves these steps: 1. Identify the transaction and gather source documents. 2. Fill in the voucher details (date, payee, amount, description). 3. Attach supporting documents. 4. Obtain necessary approvals. 5. Record the entry in the books of accounts.
5. What are the types of vouchers used in most businesses?
Common voucher types include: Cash vouchers (for cash transactions), Payment vouchers (for payments made), Receipt vouchers (for cash received), Journal vouchers (for adjusting entries), and Transfer vouchers (for internal transfers). The specific types used depend on a business's needs.
6. What is a voucher prepared from?
A voucher is prepared from one or more source documents that provide evidence of the transaction. These could be invoices, receipts, bills, or other related documentation.
7. How to prepare a voucher for payment?
To prepare a payment voucher, you'll need the relevant source documents (invoice, bill, etc.). Then, create the voucher, detailing the date, payee's name, payment amount, purpose, and attach the supporting documentation. Finally, ensure authorization before recording the entry in the accounts.
8. What is voucher and its types?
A voucher is a written document that acts as evidence of a financial transaction. Different voucher types exist to record various transactions, including cash receipts, payments, and internal transfers.
9. Preparation of vouchers class 11 pdf?
Many resources offer preparation of vouchers notes and materials for class 11 students in PDF format. Search online for "class 11 accounting vouchers PDF" or check your school's learning management system. Ensure the resource aligns with your syllabus.
10. Preparation of vouchers in Tally?
In Tally or other accounting software, voucher preparation is streamlined. You input transaction details into the system, which automatically generates the relevant voucher and updates the accounts. Understanding manual voucher preparation is still essential, however, for grasping the underlying accounting principles.
11. What is the meaning of preparation of vouchers?
The preparation of vouchers means creating the formal accounting documents that support a financial transaction. This involves collecting source documents, filling out the details of the transaction and creating a permanent record. This process is key for maintaining accurate financial records.
12. What is the purpose of a voucher?
The primary purpose of a voucher is to provide documented evidence of a financial transaction. This ensures accuracy in accounting, facilitates auditing, and helps prevent fraud. It forms a crucial link between source documents and the formal accounting records.
