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What is an Accounting Voucher? Explain the Types of Vouchers.

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In a business, there are numerous transactions that take place on regular basis, these can be the purchase and sale of goods and services, receiving or paying cash, and many more. Transaction basically refers to any monetary activity which affects the financial statements and is documented as an entry in the books of accounts. It involves any kind of exchange involving money, goods, or services. But for every financial transaction taking place in business, there should be valid documentary evidence that supports each transaction. This documentary evidence supporting transactions is known as ‘Source documents’. Common examples of source documents are cash receipts, cheques, pay-in-slip, invoices, etc. 

Source Documents:

Source documents are the documents that are authentic, original, and the very first record, which incorporates the important details of the business transactions. This document contains important information like the name of the party, the date on which the transaction happened, the amount of the transaction, and the nature of the transaction. Source documents become the base to record the transaction in the books of accounts. There’s always a unique number associated with every source document to differentiate it from others. These documents serve the purpose of providing authentic evidence for every transaction. Source documents are also important for auditors and accountants because these records help them in auditing accounts and making tax assessments. These are the written proofs as per the accounting principle of verifiable objective, as it says that every transaction must have sufficient proof to support the transaction. Also, it can serve as legal evidence if any dispute arises.

But to make the entries and to form financial statements further, transactions need to be recorded in a more systematic manner and this is the step where ‘vouchers’ comes into existence.


Vouchers are prepared to support the accounting entries made in the books of accounts to provide correctness to the transactions. Initially, every transaction finds a place in the source documents and then using source documents, every transaction is recorded in the form of vouchers. For every business firm or party involved, there are vouchers in the name of every firm with their specific name. Also, different vouchers are created for every transaction as well. Every voucher indicates the accounts that are required to be credited or debited. Vouchers are usually sanctioned by the accounts payable department to authorize the payments. For every voucher, there is a certain serial number written on it and its related source document is tied up to the particular voucher. The main reason to assign a serial number to every voucher is to make it easy for the auditors to file and vouch them. Like source documents, vouchers add to the documentary evidence of business transactions. 

Difference between Voucher and Source Documents:


Source Documents

1. Vouchers denote the evidence of the transaction.                          1. Source document refers to the document recording transactions in the correct manner.
2. Vouchers are supported by the source documents.                          2. Source document provides the base to prepare the vouchers.
3. Vouchers contain information on what account is to be debited or credited. 3. Source document only collects the details of the business transactions.
4. The main purpose of preparing vouchers is not to record transactions and rather to verify transactions.  4. The main purpose of preparing the source documents is to record business transactions.
5. Common Examples of Vouchers are: debit note, credit note, letter of credit, etc. 5. Common examples of source documents are cash memos, invoices or bills, cash receipts, etc.

Types of Vouchers:

Vouchers can be prepared in two forms: 

A. Cash Vouchers

B. Non-Cash Vouchers

A. Cash Voucher:

Cash Vouchers basically refer to vouchers that incorporate all the cash transactions that are cash receipts and payments. Under the category of Cash vouchers, there can be two types of vouchers; Debit Vouchers and Credit Vouchers.

1. Debit Vouchers:

Debit Vouchers are prepared to record transactions related to the cash payments like:

  • Cash payments to buy goods
  • Cash payments to buy fixed assets & investments
  • Cash payments to Creditors
  • Cash payments regarding expenses (rent, salaries, etc.)
  • Securing cash in the banks

Details included in the Debit Voucher:

  1. Date on which transaction is recorded
  2. Serial no. of Voucher
  3. Name of the account debited 
  4. Amount involved in the debit transaction
  5. Description of the transaction along with required information.
  6. Serial Number of the Source document attached to the Voucher

2. Credit Vouchers:

Credit Vouchers are prepared to record the transactions relating to the cash receipts like:

  • Cash receipts from selling goods
  • Cash receipts from selling out fixed assets & investments
  • Cash receipts from debtors
  • Cash receipt related to income (interest income etc.)
  • Withdrawal of cash from the banks.

Details included in the Credit Voucher:

  1. Date on which transaction is recorded
  2. Serial no. of Voucher
  3. Name of the account credited
  4. Amount involved in the credit transaction
  5. Description of the transaction along with required information
  6. Serial Number of the Source document attached to the Voucher

2. Non-Cash Vouchers

Non-cash vouchers are also known as Transfer Vouchers. These vouchers basically incorporate all the non-cash transactions. Following are the details scribbled in the Non-cash voucher.

Details included in the Non-cash voucher:

  • Buying or Selling goods on credit
  • Buying or Selling out fixed assets & investments
  • Goods sold on credit
  • Returns of goods bought
  • For writing off bad debts
  • To provide depreciation

Details included in the Non-Cash Voucher:

  1. Date on which Voucher is prepared
  2. Serial no. of Voucher
  3. Name of the account debited or credited in regard to credit transactions
  4. Amount involved in the credit transactions
  5. Description of the credit transaction along with required information
  6. Serial number of Source document attached to the particular voucher


There is a business named M/s Shikha Enterprises (59/3 Model Town, New Delhi, 110006). On April 14, 2022, this business purchased 5 wooden chairs at the unit price of ₹500 each and 10 plastic chairs at the unit price of ₹300 each on credit from The Furniture Hub. Prepare a voucher for this particular transaction:



  • Accuracy: Accounting vouchers help ensure the accuracy of financial records, as they provide a detailed record of each transaction.
  • Organization: Accounting vouchers help organize financial records by providing a structured format for recording transactions.
  • Audit trail: Accounting vouchers provide an audit trail that can be used to track transactions and identify errors or fraud.
  • Accountability: Accounting vouchers help ensure accountability by documenting who authorized and carried out each transaction.
  • Compliance: Accounting vouchers help businesses comply with tax and regulatory requirements by providing detailed records of financial transactions.


  • Time-consuming: Creating and managing accounting vouchers can be time-consuming, especially for businesses with a large volume of transactions.
  • Paperwork: Accounting vouchers can result in a significant amount of paperwork, which can be difficult to manage and store.
  • Complexity: Accounting vouchers can be complex, especially for businesses with multiple accounts or subsidiaries, leading to potential errors and confusion.
  • Cost: Accounting vouchers may require additional resources and software, leading to additional costs for businesses.
  • Vulnerability: Accounting vouchers are vulnerable to loss, theft, or damage, which can impact the accuracy and completeness of financial records.
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Last Updated : 06 Apr, 2023
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