In this session, we will be learning about what is the voucher? What are the types of voucher with examples? What is the journal? What is the account or a ledger account? Now let's see what does the voucher. The voucher is the documentary evidence supporting the financial transaction is known as the voucher.

So in order to pass a journal entry, okay, in order to record this particular financial transaction in the books, we need a voucher. This voucher are prepared internally as well as externally, internally means within the organization whereas externally means received from our vendors from whom either we purchase the goods or receive some services. Basically voucher means to vouch that is to confirm or a certain a certain financial transaction. entity maintains internal document having details and approval of each financial transaction along with the external evidence. So for every financial transaction as the entity it needs to provide details of what is the nature of the financial transaction who was approved that financial transaction, okay, so it maintains the internal document that does internal voucher along with the external evidences or documents. There are different vouchers for different financial transaction.

So for each different type of financial transaction, there are different types of voucher, and each voucher is numbered serially as per the type. Usually you the voucher is numbered serially, chronologically As further date, okay and it's time. Now let's see what are the different types of vouchers now vouchers for sale and services provided. The entity prepares invoice that is built for the sale of goods or for invoice for entering services. In case of cash sale, the entity may give you cash bill, cash memo, or cash invoice, then delivery Chelan in case of goods, sales voucher or evals. You may also say debit note, this is an internal document containing details about the sale.

Now let's take an example here. So this is your business and this is your client. So what is happening is within the business, there are various departments like there is account department, sales department or marketing department. Then there is stores in judge in charge of stock of goods okay. So whenever there is a sale of goods what happens is sales department will intimate accounts department to prepare invoice and to store department will intimate to dispatch the goods will be sending goods along with invoice and then you will also be sending delivery alarm to climb. So what will fly and do is client will sign one copy of delivery chillon as an acknowledgement of receipt and then one copy of delivery Gilan is sent back to you then there is one more sales voucher which will be prepared by sales department.

Okay, so it's internal voucher. It's a debit note when it will take all the approvals was approved those sales and that will also be sent to the client and subsequently he'll acknowledge that and send it back. So these are all documents which are interchange between our business and the line. All this document are known as a voucher in order to record a particular sale in the books of account, we need all this vouchers. Now. Let's take one example of services This is our business clients.

So, in case of services, there is one pre approved contract which is signed between our business and client okay. So whenever we are providing the services, we will be raising the invoices to the client as per the contract okay since there is no sale of goods, there is no delivery challenge, but we will be sending the invoices as per the terms of contract Okay, so services so all these documents are known naza watch. So, this is a format of invoice, invoice then here you have a company logo or a logo of entity, then name, address of entity, GST number, Pan number of the entity, then date and invoice number invoice number is usually automatically generated in the system, then customer ID then bill to and ship sometimes the billing address and the shipping address may be different. Then here we have description of goods or description of services, then Product Code quantity, units rate amount, then we have to add the taxes here.

Total total amount in words, okay and the note or additional conditions if any and here Somebody has to sign authorized signatory has to sign for on behalf of entity. So this is the format of invoice. This is a format of delivery challen okay the chalon or delivery note which we are sending along with the goods. Here you have a company logo or entity logo the name and address of the entity again GST number pan number and here we have information like date delivery challah number, the buyers order number or in case of services you may also have an agreement number then dispatch document number dispatch details how the goods are dispatched then the terms of delivery if any, okay, then again bill to ship to address of the customer. Then here we have description of goods Product Code quantity, units rate amount Taxes total total amount in words note or additional conditions depending and for the name of entity on behalf of entity authorized signatory water for the purchase of the good in this case we will be preparing one purchase voucher or credit voucher okay wherein we will be putting all the details of who has approved those purchases of the goods and it will have the signatures of the store manager and say sales person Okay.

Then invoice that is received from the seller of the goods and delivery challenge received from the seller of the goods. Now let's see when exactly this is our business and this is a seller. So whenever we are purchasing some goods, the seller will be sending us invoice. Delivery challenges and goods. Now when the goods are received the stores in charge or the stock department, they will verify the goods and then they will acknowledge the delivery challenge and then send one copy of delivery challen to the seller as acknowledgement then this invoice received will be given by stock department to finance department and marketing department. Okay.

And the goods will be kept in the go down on the warehouse. So the documents like invoice delivery chillon are attached with your purchase voucher or credit voucher which is prepared internally. Okay. And it's signed and approved by your strong department marketing department. And finally, it goes to accounts or finance department. Okay, so These documents are known as purchase vouchers.

Now let's see what is a purchase voucher is a purchase voucher we have name of renter address of vendor, contact number of the vendor, then date purchase voucher number and in the invoice number which is sent by a vendor and the date of that invoice, we have description here, name of project or cost This is for internal purpose for goods are purchased okay if it is for the specific project, then we have to add it the name of project or cost center we have to add it here and quantity rate amount. Then add the taxes total total amount in words, any additional notes here, and here the authorized signatory has to sign expense So Archer, this is an internal document prepared along with the expenses invoice received from the vendor, it has details of expenses incurred signature of the person approving the expenses Okay. Now if you see this is similar to your purchase while it is internally prepared document and then it is attached with the invoice received from the vendor or the contract sign from the vendor.

Okay, let's see an example for this. See, this is the business. This is a seller buy the goods or he is a service provider. Okay. So he is providing either services or goods to your business. So what we are doing is as a business, we will be preparing one expense voucher.

He'll also send us the invoice. voice from time to time. So this invoice will be attached with the expense voucher and will be used for recording a financial transaction related to the expense. Now there are certain internal expenses What are those like your salaries to employees right or say your contract fees, professional fees Okay. Now what is happening is as a business there is one contract which has been signed with this internal employees Okay, during recruitment. So, as per the terms of contract the salary will be paid at the end of every month and instead of expense voucher a salary sheet is have been signed and taken from the employers or laborers also.

Nowadays what happens is the generally a salary or accounts department will send your mail there is no separate salary sheet which is sign from the employers and usually the salary is not paid in cash it was paid and credited to your bank account so that that itself is evidence that salary is paid. So you need not take a sheet signed by the employees. Okay, so this was about the expense voucher says I'm expense voucher so internal document which is prepared within the organization. This is logo, name of the vendor again, address and contact details of the vendor year. Date, expense voucher number, the nature of expense. So what does the nature of expense Whether it's the advertising expense or repairs and maintenance expense, we have to write it here then TDs whether tax needs to be directed at source, then description of services.

Here the description about the nature of services is given. For example rent to Mr a or electricity expense for the month of so on. So, are office repairs work done by Mr. Swan. So, okay, again the name of project and cost center if the expenses related to a specific project, we write the name of project or cost center here, then the amount at taxes total amount in words total amount, the number, then note or additional conditions if any, and here authorized signatory who has approved this expense has to sign this is a travel expense voucher. It is generally given by an employee or a manager employ when the employee travels for the business purpose. So, this is logo of the company name of employee employee ID position department manager of the employ address and contact details of the employ pan number of employee and here we have date expense voucher number period of travel that is strong to the place of travel and the purpose.

Now here we have date description, then bill number or invoice number, if any then project number or cost center okay if the person is traveling for a specific project, we have to write a project or the cost center number here. Then what was the nature of expense whether it was for accommodation transport, fuel, food for recreational activities, or other miscellaneous expense and accordingly, we have to Total eight, total expense and advance paid. If any do the employer along with the payment voucher details, you have to write it here. Total amount in words, no additional conditions. Here we want the signature of manager and we want a signature of authorized signatory. He can be a manager or any other person who has approved this travel.

So this was about travel expense voucher payments voucher. This prepared when the payment is made for expenses or purchase of goods, it has details of a person to whom the payment is made. Then the mode of payment, person approving payment, transaction ID or cheque in case of bank payments. Now payment vouchers can be of two types one is bank payment voucher In case so bank payments and cash payments voucher in case of cash. Now usually in case of cash payment voucher says the payment is made in cash. Okay, so we won't have any evidence in our bank statement.

So the cash payment voucher is usually acknowledged by the person receiving the payments. Okay, so this was about your payments voucher payment voucher. This can be for both cash as well as bank payments. So given by company prepared internally via entity, we have a logo here payment voucher number date, your name of employee or vendor to whom the payment is made, and Vendor ID or employee ID payment for invoice number or voucher number. So we are we have a details of payment for some So invoice or so and so voucher and model the payment whether it's in cash check or bank transfer, then we have details of payment that this check number or transaction ID and amount, total amount amount in words and authorized signatory here. receipt voucher it is prepared when the payment is received by the organization.

It has details like date, details of a person from whom amount is received, check number and transaction ID amount etc. A receipt about just may be of two types that does bank receipt voucher and the cash receipt voucher. So in case of your bank payments, you make bank receipt voucher in case of your cash, make a cash receipt voucher. Okay. Now these are also known typically known as receipts now why copy of this receipt voucher needs to be given to a client customer okay or any other person was making payment to our business as a evidence of proof. So this was about the seat voucher This is a receipt.

So we have a local receipt voucher number date and received rupees so and so in brackets we have the right amount in words by cash cheque bank transfer debit card credit card, while check number or transaction ID here from Mr. or Mrs. So and so far we had right purpose we have received among for what purpose and again the invoice number or the voucher number so once and again, we had authorized signatory who has received the payment. Okay, so this was about the receipt journal vouchers is up prepared for non cash transaction wherein certain entries are required to be passed in the books of account. There may be certain transactions which are required to be recorded in the books of account. Okay, so they might not come in any of the categories which we had seen that as expenses or income, audio sales voucher or payment voucher or receipt voucher.

So all those transactions are recorded using the journal vouchers. The journal voucher is basically so as your evidence Okay, as in who has approved this following transaction to be recorded in the books of account. So those are known as journal vouchers. This is all your internal recording purpose. So this was about that journal voucher. Journal voucher.

Journal voucher is for passing journal entry. So logo journal voucher number, date, description amount debit, so and so account credit so and so aka narration that is description of other journal entry, wherein we can specify what is the reason for passing this particular journal entry. And here, an authorized signatory who was approved this journal entry. So this was about journal voucher. journal So, journal is a book of original entry, it is a book wherein the journal entries are recorded and then they are posted to the ledger accounts. A journal has record of all financial transaction with related to business.

So, journal is basically a book where in your original financial transaction is recorded in the form of journal entries, and subsequently these transactions are used to be posted in the respective ledger accounts. So this is a format of journal entry you will have date, or ticklers, voucher number and debit amount and credit amount. Now here, since this is a double double entry system, your debit amount should be equal to your credit amount in every journal entry. account. In bookkeeping, an account refers to asset liabilities, income expenses, equity, as represented by individual ledger pages, to which changes in the value are chronological. record that with debit and credit entries, these entries referred to as postings and the become a part of a book or final entry or ledger.

So, account means it can be asset it can be liability, it can be income expenses or it can be account of any personnel. So, basically it refers to transaction each and every financial transaction between the business and that particular account okay. So, say if there is some transaction Sale of Goods between the business and the client, there will be a client account which is maintained in the books and it will record all the financial transaction, all sales, then payment received from the client. everything related to that particular client will be recorded in that account. Okay. It is similar to your bank account.

Get bank account is the account is the bank maintains in it books, okay? Now this is a format of a ledger account name of the ledger, then this side will record all the debit entries, this side will record credit entries then you have date for ticular voucher number, amount, date or the killer voucher number amount. So at the end of every period, okay say one year, what we do is we see the number of debit entries number of credit entries and we try to balance the ledger account and transfer the balance to the next period. Okay, so this was about account