PAYMENT VOUCHER AND PETTY CASH VOUCHER — MEANING, FEATURES AND IMPORTANCE

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A payment voucher is a business document used to track payments for specific expenses.

It may also be defined as a document showing the amount owed to suppliers and vendors.

A payment voucher is used to document cash and check payments that a business has made.

It is usually created upon receipt of an invoice from the supplier.

Every organization usually has a payment voucher to support every payment made by the organization.

So, when a company receive an invoice from a supplier to pay a sum of money, it creates a payment voucher to track the payment 

Payment voucher must be examined and approved by an authorized representative of an organization before payment in cash or cheque can be made by the organization

The payment voucher is, therefore, an authorizing document for payment of expenses.

Examples of payment vouchers are petty cashier vouchers and payment vouchers for salaries and wages.

Among other things, a payment voucher could include:

1. A supplier invoice.

2. General ledger account to be used.

3. The name and other relevant information about the supplier.

4. Amount owed to supplier and the deadline for the payment of the liability.

5. The signatures of the company's representatives.

6. Shipping receipts, if available.

Importance of payment voucher

1. Important for internal control: Payment voucher serves as a form of internal accounting control.

It is a means of determining whether each payment has been legitimately authorized

2. It is used to track expenses and purchases: An expense entry is made using a payment voucher.

A payment voucher is a document that the organization uses to account for payments it has made.

This voucher is for payment and making debit entries for items purchased and expenses paid for.

What is a petty cash voucher?

A petty cash voucher is a payment voucher for small expenses that are listed in the petty cash book.

The reasons and justifications for the reimbursements or replenishments of an authorized petty cash fund are documented in a petty cash voucher.

A petty cash voucher serves as a payment voucher for petty expenses made within the organization.

A petty cash voucher also serves as the source document for a petty cash book because it is proof of petty cash expenses.

What information is contained in the petty cash voucher

A petty cash voucher contains the following information;

1. The organization's name

2. The date of cash disbursement.

3. Amount disbursed

4. Name and other relevant information of the staff receiving the cash.

5. Signature of the staff receiving the cash.

6. The name and any other pertinent information about the staff member who is approving the disbursement of cash from the petty cash fund

7. Signature of the authorizing staff.

8. Reason for the disbursement of cash

Importance of petty cash voucher

1. It serves as proof of petty cash transaction: The petty cash voucher serves as proof of petty cash transactions.

It serves as evidence of petty cash expenses. Along with the amount spent on petty items, the petty cash voucher also lists the reasons for cash disbursements.

2. Control petty cash account: The petty cash voucher aids in maintaining financial control over the petty cash accounts to ensure that the petty cash funds are not misused or abused.

3. Used in petty cash reconciliation: Verifying petty transactions to make sure money is being used properly is known as petty cash reconciliation.

The petty cash voucher is crucial for petty cash reconciliation because it offers reliable proof of how much money is still in the petty cash fund at the end of the reconciliation.

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