why are supporting vouchers required?
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ANSWER
➡️The voucher is important because it's an internal accounting control mechanism that ensures that every payment is properly authorized and that the goods or services purchased are actually received.
The voucher is important because it's an internal accounting control mechanism that ensures that every payment is properly authorized and that the goods or services purchased are actually received.
Example of a Voucher
A local restaurant orders meat and fish every few days from its vendors. The restaurant manager fills out a purchase order for 30 pounds of meat, and the owner initials the purchase order to approve the shipment. When the shipment is received, the contents of the shipment are compared with the purchase order to ensure that the shipment matches what was ordered. The restaurant completes a shipping receipt to document the process, and the shipping receipt is compared with the vendor’s invoice.
The voucher, which is a cover page that explains the attached documents, includes the purchase order, shipping receipt, and the invoice. The purchase amount is added and recorded to accounts payable on the balance sheet until paid. The owner reviews all the voucher information before signing a check.
The voucher also includes the general ledger accounts used to record the transaction. The restaurant, for example, can credit (increase) the meat inventory account and debit (decrease) the cash account to record the payment. The receipt of payment and the date is recorded to show that the voucher has been paid. Accounts payable will reflect the lower balance due to the invoice being paid, assuming there are no additional payables generated.