Professional Documents
Culture Documents
OF ACCOUNTING PROCESS
SUBMITTED BY: -
SUBMITTED TO: -
MR. ASHOK KUMAR VERMA
FACULTY OF ACCOUNTANCY, CNLU
I, hereby, declare that the work reported in the B.B.A. L.L.B (Hons.) Project Report titled
of my work carried out under the supervision of Mr Ashok Kumar Sharma. I have not
submitted this work elsewhere for any other degree or diploma. I am fully responsible for the
Pulak (2031)
SEMESTER- 2nd
CNLU, Patna
Dated:
ACKNOWLEDGEMENT
I would like to show my gratitude towards my guide Mr Ashok Kumar Sharma, Faculty of
I owe the present accomplishment of my project to our CNLU librarians, who helped me
immensely with materials throughout the project and without whom I couldn’t have
I would also like to extend my gratitude to my friends and all those unseen hands that helped
THANK YOU,
PULAK
SEMESTER: - 2nd
CNLU, Patna
AIMS AND OBJECTIVE
• To enlist the various types of vouchers
HYPOTHESIS
The researcher hypothesise that Vouchers are the most important documents for accounting
and any scam and fraudulent act by any person can be scrutinised by these vouchers.
RESEARCH METHODOLOGY
The researcher will do both doctrinal and non-doctrinal type of research in which he will go
through both primary and secondary sources in order to get a clear picture of the importance
Definition
Voucher is a piece of evidence, which proves that a certain event or transaction is carried out.
Vouchers are necessary because they are a source document and a proof to every transaction
that has taken place in the business premises. If every transaction of the business were recorded,
it would mean that there is a voucher available as a proof to that transaction. When the accounts
of the company are audited, these vouchers play an important role and help the external auditor
in gathering audit evidence.
A voucher may be of different kinds like Cash payment/receipt voucher, Bank payment/receipt
voucher and petty cash voucher all these vouchers if made by hand or printed from a
computerized accounting system will serve as an evidence of transaction as they will be signed
by payer and receiver. A voucher can also be used as an internal control tool if it has to verify
by different personnel before final transaction. Another form of voucher is Journal voucher
these are used to make adjustments in accounts. These adjustment are passed during the year
or as soon as they are required to pass a journal entry.
Business transactions are usually evidenced by an appropriate documents such as Cash memo,
Invoice, Sales bill, Pay-in-slip, Cheque, Salary slip, etc. A document which provides evidence
of the transactions is called the Source Document or a Voucher. At times, there may be no
documentary for certain items as in case of petty expenses. In such case voucher may be
prepared showing the necessary details and got approved by appropriate authority within the
firm. All such documents (vouchers) are arranged in chronological order and are serially
numbered and kept in a separate file. All recording in books of account is done on the basis of
vouchers.
Preparation of Accounting Vouchers
Accounting vouchers may be classified as cash vouchers, debit vouchers, credit vouchers,
journal vouchers, etc. There is no set format of accounting vouchers. A specimen of a simple
transaction voucher is used in practice is shown in figure below. These must be preserved in
any case till the audit of the accounts and tax assessments for the relevant period are completed.
Now a days, accounting is computerised and the necessary accounting vouchers showing the
code number and name of the accounts to be debited and credited are prepared for the purpose
of necessary recording of transactions. A transaction with one debit and one credit is a simple
transaction and the accounting vouchers prepared for such transaction is known as Transaction
Voucher. Voucher which records a transaction which entails multiple debits/credit and one
credit/debit is called compound voucher. While transactions which have multiple debits and
multiple credits are called complex voucher. These types of voucher with their specimen is
dealt with in more detail in the second chapter of this project.
The point to be noted down here is since there is no fixed rule regarding any format of voucher
and a mere essentials that must be present in a voucher are to be given and therefore each
business authority has its own discretion in using any sort of Voucher.
Role of Voucher
The accounting process starts itself with the happening of a certain event and the very next step
in this process in creation of voucher and without this step no further steps can be taken in the
process of accounting.
1
Source: - https://www.meritnation.com/cbse-class-11-commerce/accountancy/financial-accounting-part-i-
ncert-solutions/recording-of-transactions-i/ncert-solutions/161_17_1348_2365_87_14166
The design of the accounting vouchers depends upon the nature, requirement and convenience
of the business. There is no set format of an accounting voucher. To distinguish various
vouchers, different colour papers and different fonts of printing are used. Some of the specimen
of the accounting vouchers are given in the earlier pages. An accounting voucher must contain
the following essential elements:
• Date of transaction is filled up against the date and not the date of recording of transaction
is to be mentioned;
• The person who prepares the voucher must mention his name along with signature; and
• The name and signature of the authorised person are mentioned on the voucher.2
2
Accountancy for Class 11 by NCERT
2. Types of Voucher
Accounting voucher may be classified as Cash voucher i.e., debit voucher, credit voucher, and
non-cash voucher i.e., transfer voucher.
Debit Vouchers
These vouchers are prepared for recording of transactions involving cash payments only. Cash
payments in the business are made on account of: -
• Expenses
• Purchases of Goods
• Purchases of Assets
• Payment to creditors
• Repayment of loans
• Drawings and advances etc.
All cash payments, one aspect is cash and the other is either the party to whom the payment is
made, or an expense or an item of property for which the payment is made. A format of debit
voucher is as follows:
3
Source: - http://download.nos.org/srsec320newE/320EL4.pdf
4
Credit Vouchers
These vouchers are prepared for recording of transactions involving cash receipts only. Cash
receipts in the business are accepted on account of:
In all cash receipts, one aspect is cash and the other is either person or party from whom cash
is received or revenue on account of which cash is received or the property on sale of which
cash is received. A format of credit voucher is as follows:
4
Accountancy for Class 11th; NCERT
5
Transfer Vouchers
With the expansion of business, the role of credit transactions is increasing at a fast pace. For
recording of these credit transactions, a voucher is prepared known as transfer voucher. These
transfer vouchers are prepared to record non-cash transactions of the business involving:
1. Credit purchases
2. Credit sales
3. Return of goods sold
4. Return of goods purchased on credit
5. Depreciation on Assets
6. Bad Debts etc.
These vouchers are prepared both in debit and credit forms simultaneously.
5
Accountancy for Class 11th; NCERT
6
Complex Voucher
These vouchers entails all the transactions which has multiple debits/credits and are complex
in nature and also, they are called as Journal Voucher.
6
Accountancy for Class 11th; NCERT
7
All these above mentioned Vouchers are an important source documents by the help of which
any business entity can go forth with recording these transaction in the books of account in the
books of original entry that are Journal and Day books.
7
Accountancy for Class 11th; NCERT
3. Legal Implication
All through as we can report there is no specific laws regarding the format of voucher but there
are certain guidelines that are to be followed for the very purpose of uniformity and bringing
legality in the maintenance of Vouchers and Source Documents. These guidelines are as
follow: -
• All vouchers should be scrolled (serial numbered) and entered in cash/bank book with
appropriate referencing
When a piece of inventory is set to be ordered, the merchandising or inventory department files
a purchase requisition with the purchasing department. The purchasing department places an
order for the inventory and puts both the purchase requisition document and the purchase order
in the voucher file.
The voucher file is sent to the shipping and receiving department, which receives the shipment,
files a receiving report, and places the report in the file. The voucher is then sent to the
accounting department with the invoice. After the accounting department approves the invoice,
all the source documents are placed in the voucher file and sent to the cashier for payment.
As you can see, the voucher file stores every source document involved in the purchase of the
inventory, so management can trace the audit trail of every inventory purchase and stop
unauthorized cash disbursements.
Sole Proprietorship
Partnership
In partnership also the financial statements of the business are not to be submitted in forum
barring certain exemptions and in cases where certain financial instruments or government aid
is to be availed. Despite that the validity and relevance of source documents and voucher is
inevitable as not only these transaction validate the business transaction but also provide for
legal backing in case any dispute arises between partners and in situation of any civil suit or at
times of resolution of partnership. Most of the modern partnership companies not only appoint
a CA but also follow all the norms to maintain a scientific and legally correct record of business
transactions. Therefore, the importance of Vouchers and Source Documents are inevitable.
Private Company
Private Companies maintain their records of financial transaction as per the Companies Act,
2013 and therefore have to follow all the legal provision as laid down by the act. The
importance and relevancy of the vouchers becomes inevitable in this case. Not only these
companies are under the ambit and scope of external audit but also, they have to submit their
annual reports to the Registrar of Companies and therefore as per the present guidelines they
have to maintain the report of financial statements for 8 years therefore they must have the
records of previous 8 years of transactions.
Public Company
Public Companies maintain their records of financial transaction as per the Companies Act,
2013 and therefore have to follow all the legal provision as laid down by the act. The
importance and relevancy of the vouchers becomes inevitable in this case. Not only these
companies are under the ambit and scope of external audit but also, they have to submit their
annual reports to the Registrar of Companies and therefore as per the present guidelines they
have to maintain the report of financial statements for 8 years therefore they must have the
records of previous 8 years of transactions. Moreover, they have to publish their reports for all
the stake holders of the company. The importance of Voucher and source document is such
that in recent past most of the scams are unveiled as a result of rechecking and scrutiny of these
source documents only. The source documents therefore are not only the source from which
the transactions are to be recorded and backed but also the source of manipulations. If the
source document is manipulated, then the whole recording becomes questionable therefore a
careful observation and scrutiny is required in matters of Vouchers and the general principles
like chronological order maintenance and systematic recording must be followed. Further they
must check as to whether they are consonance with the legal aspect of accounting or not.
5. Conclusion
In this project report we came to the conclusion that role of Voucher is of utmost importance
for the whole system of accounting process.
The very process of accounting starts with the happening of a business transaction and event
and the documents that verifies this happening is called the source documents and to record
this transaction in the books of accounting we need vouchers to be prepared and therefore the
role of Voucher can be understood in this light.
Further as per companies act and various other guidelines given by the Government and its
statutory bodies the record for at least 8 years need to be maintained so that in cases when we
have to look back to certain transaction in case of any scams.
The importance of Vouchers can be also ascertained by the fact that manipulation of the
Vouchers may lead to the manipulation of the whole accounting process and the very basic
point of feature of accounting record that is reliability is defeated.
Moreover, in any auditing the Vouchers plays the most important role as not only they contain
vital information but also are prone to manipulation.
The hypothesis that researcher presumed stands true through this report.
Bibliography
Books
Websites
• https://www.readyratios.com/reference/business/voucher.html
• https://scholar.google.co.in/scholar?hl=en&as_sdt=0%2C5&q=voucher+in+accountin
g&btnG
• https://cleartax.in/s/maintenance-books-accounts