Types of Vouchers in Accounting

A voucher is more than just a document—it’s the backbone of every transaction recorded in the world of accounting. Whether you’re a business owner, accountant, or finance student, understanding the types of vouchers in accounting is crucial. From sales to expenses, every financial move is backed by a voucher, ensuring a transparent and traceable record.

Introduction to Vouchers

Vouchers are foundational elements in the financial documentation of any business. They act as proof of every transaction, ensuring that financial records are complete and verifiable. Without vouchers, maintaining accurate books would be nearly impossible. From small startups to multinational corporations, everyone relies on vouchers to ensure financial clarity.

What is a Voucher in Accounting?

In simple terms, a voucher is a written document that supports a business transaction. It identifies the giver and the receiver of value and serves as evidence that a financial event has occurred. Vouchers can be generated for cash transactions, credit sales, bank dealings, expense payments, and many other types of financial activity.

Importance of Vouchers in Business Transactions

• Legal Evidence: Vouchers serve as documented proof of transactions.

• Audit Trail: Auditors rely on them for validating financial records.

• Internal Control: Vouchers act as checkpoints for internal processes.

• Tax Compliance: Essential during tax assessments and GST filings.

How Vouchers Act as Legal Evidence

When disputes arise or audits occur, vouchers provide the much-needed documentation. Courts and tax officials consider vouchers as valid legal proof of transactions. For this reason, businesses must store vouchers properly and ensure they are authentic and tamper-proof.

Classification of Vouchers

There are various ways to classify vouchers:

• Source Vouchers: Original documents like bills and receipts.

• Accounting Vouchers: Documents prepared for recording in books.

• Supporting Vouchers: Documents attached to support primary entries.

Sales Bill: Voucher of Sale of Goods

A sales bill is issued when goods are sold. It includes:

• Date of sale

• Description of goods

• Quantity and rate

• Total amount and taxes

This voucher is crucial for income recognition and GST filing.

Purchase Bill: Voucher of Purchase of Goods

Businesses issue a purchase bill when they acquire goods or services. It serves as proof of expenses and input tax credits. Details usually include:

• Supplier information

• Invoice date and number

• GST and net payable

Credit Note: Note for Sales Return

When a customer returns sold goods, a credit note is issued. It reduces the seller’s receivables and reflects the reversal of a sale. It’s commonly used in:

• Product return cases

• Post-invoice discounts

• Error corrections in billing

Debit Note: Note for Purchase Return

A debit note is used when the buyer returns goods to the seller. It reduces the buyer’s liability and corrects accounts payable. It includes:

• Purchase return reasons

• Invoice references

• Return quantity and amount

Counter Foil of Cheque: Cash Withdrawal Evidence

This voucher is a retained portion of a cheque book. It shows:

• Cheque number

• Amount withdrawn

• Purpose of withdrawal

• Signature

It confirms that cash was withdrawn from the bank.

Pay-in-Slip: Voucher to Deposit Cash

A pay-in-slip is used for depositing cash into a bank. It includes:

• Account number

• Amount deposited

• Bank name and branch

• Date and depositor signature

Receipt Issued: Certificate of Amount Received

This voucher is given to acknowledge receipt of money. It is used in:

• Cash sales

• Advance payments

• Rent receipts

• Loan repayments

Receipt Received: Certificate of Amount Paid

This is the counterpart of the above. It confirms that a business has paid someone. It’s typically used in:

• Supplier payments

• Loan installments

• Salary disbursements

Expense Bills: Proof of Expense Paid

An expense bill covers payments made for business operations. Examples include:

• Utility bills

• Travel expenses

• Office supplies

• Software licenses

Proper documentation helps claim input tax and ensure accurate records.

Difference Between Receipt and Payment Vouchers

Source Documents vs. Vouchers

Internal vs. External Vouchers

• Internal Vouchers: Created within the business (e.g., payment slips).

• External Vouchers: Received from outside (e.g., supplier invoices).

How Vouchers Help in Audit Trails

Auditors track financial history through vouchers. A missing voucher often raises red flags. Organized vouchers ensure transparency and legal compliance.

Voucher Numbering and Record Keeping

Every voucher should be numbered serially and stored in chronological order. This system helps in:

• Easy retrieval

• Better organization

• Quick verification

Manual vs. Digital Vouchers

Modern accounting systems like Tally and Zoho Books allow digital voucher generation with:

• Auto-numbering

• GST computation

• Easy export for audits

Mistakes to Avoid While Preparing Vouchers

• Incomplete information

• Incorrect dates or amounts

• Duplicate voucher numbers

• Missing signatures or stamps

Always review before finalizing!

Role of Vouchers in GST and Tax Filing

Vouchers support claims for GST credits, deductions, and tax returns. They must match filings or penalties may occur.

Sample Formats for Common Vouchers

Providing standard templates boosts uniformity. Common formats include:

• Sales invoice format

• Payment voucher template

• Receipt voucher format

Tools & Software for Voucher Management

• Tally ERP 9

• QuickBooks

• Zoho Books

• Busy Accounting

These tools automate and secure voucher handling.

FAQs About Types of Vouchers in Accounting

What is the purpose of a voucher in accounting?
A voucher documents the details of a financial transaction and serves as legal evidence.

How many types of vouchers exist in accounting?
There are 9 commonly used vouchers including sales bill, purchase bill, debit note, credit note, etc.

Is a cheque a voucher?
The cheque itself isn’t, but its counterfoil acts as a voucher for recording withdrawals.

Why are vouchers important in GST?
They provide proof for claiming input tax credit and ensure tax compliance.

Can digital vouchers replace paper ones?
Yes, provided they are properly authenticated and stored securely.

Are vouchers required in all businesses?
Yes, all registered businesses must use vouchers to maintain accurate financial records.

Conclusion: Why Every Transaction Needs a Voucher

Vouchers are the silent guardians of accounting. They ensure every penny is accounted for, every transaction has a trail, and every audit goes smoothly. From simple receipts to complex debit notes, vouchers make the world of business transparent and trustworthy.