Rome Was Not Built in a Day
10. Accounting from vouchers… Cont. after Palak Shah…. CHART EXPLAINING THE INTERPRETAITION AND SHOEING THE EFFECTS OF VOUCHER… CHART 1 |SR. NO. |VOUCHER |INTERPRETATION |WHERE IT IS RECORDED? | |1. Our cash memo |Cash sales |Recorded in debit side of cash book | |2 |Cash memo of other party |Purchase of goods or assets on cash |Recorded in credit side of cash book | |3 |Credit memo of other party |Credit purchase of goods and assets |Recorded in purchase book and journal | | | | |proper | |4 |Our credit memo |Credit sales of goods |Recorded in sales book | |5 |Our debit note |Purchase return of goods |Recorded I purchase return book | |6 |Our credit note |Sales return of goods |Recorded in sales return book | |7 |Debit note of other party |Sales return of goods |Recorded in sales return book | |8 |Credit note of opposite party |Purchase return of goods |Recorded in purchase return book | |9 |Receipt issued |Money received in cash or cheque by us |Recorded on debit side of cash book | |10 |Receipt of opposite party |Payment made on cash or cheque |Recorded n credit side of cash book | |11 |Pay-in slip |Cash, cheque or draft deposited in bank |Recorded on debit side of cash book | | | | |Recorded on both side of cash book | |12 |Counterfoil of the cheque |Cash withdrawn from ban for office use |Recorded on both side of cash book | | |Payment made to creditors |Recorded on credit side of cash book | |13 |Expense voucher |Expense made by cash |Recorded on credit side of cash book, cash| | | |Expense made by cheque |column | | | | |Recorded on credit side of cash book, bank| | | | |column | |14 |Income tax challan |Income tax paid by cheque or cash |Recorded on credit side of cash book on | | | | |cash/bank column | |15 |Sales tax challan |Sales tax paid by cash or cheque |Recorded on credit side of cash book n | | | | |cash/bank column | |16 |Particulars of correspondence |Regarding bank charges |Recorded on credit side of cash book | | | |Regarding interest credited by bank |Recorded on debit side of cash book | | | |Regarding dishonor of cheque deposited | | Explanation of terms: – 1.
Contra Transactions: Those transactions, which are recorded on both the sides of cash book, debit and credit, are known as contra transactions. 2. Bank charges: bank provides service to our business. Receives money on our behalf, collects payments of outstations cheques and makes payment to outstation traders on our behalf. Bank takes care of our money. Therefore, bank charges some charges as remuneration for providing such type of various services. It is known as bank charges. 3. Expenses for assets: When any asset is purchased, the expenses on purchase of assets are also debited to the asset account and it is recorded in asset account after adding such expense. CHART 2 [pic] Cash purchase | |cash sales | |payment to creditors | |Payment of bills payables | |Received collection | |Received for bills receivable | |Income received | |Expenses paid | |Cash brought in as capital | |Drawings through cash | |Loan/advances received | |Loan/advanced repaid | |Bank interest | |bank charges | |cash deposited in bank | |cash withdraw from bank | |Credit purchase of goods | |- Recorded in purchase goods | |Credit sales of book | |- Recorded in sales goods | |Purchase return of book | |- Recorded in purchase return goods | |Sales return of book | |- Recorded in sales return goods | |Bills payable accepted | |- Recorded in bills payable goods | |Bills receivables received | |- Recorded in bills receivable goods | |Other transactions | |- Recorded in journal proper etc. | CHARACTERISTICS OF VOUCHER: 1. The name of the party who is preparing the voucher is written on the top of the voucher and the name of the party to whom the voucher is given below. 2. From the voucher, the information like date on which transaction has taken place; its amount, type of transaction, terms and conditions of transactions etc are available. 3. Voucher gives an idea about the parties between whom the transactions has taken place. 4. Voucher also gives an idea about weather the transaction is cash or credit? 5.
If we have prepared the voucher, its original copy is given t the opposite party and its duplicate is kept with us. 6. If the original copy of the voucher is with us, it shows that the opposite party has prepared the voucher. 7. For transactions with bank, the printed vouchers are available from the bank in which we only need to fill the particulars. 8. In respect of amount paid, if it is not possible to obtain the voucher or receipt from the opposite party, the trader himself prepares the voucher and takes the signature of the opposite party or the authorized person of firm puts the signature sanctioning the voucher. ———————– Types of transactions Cash transactions Recorded in cash book Credit transactions Recorded in subsidiary book