Accounting Vouchers: Meaning and purpose MCQs Quiz | Class 9
This quiz is for Class 9 students studying Elements of Book-Keeping & Accountancy (Code 254), focusing on Unit 3: Nature of Accounts & Rules for Debit and Credit. It specifically covers the topic of source documents and vouchers as evidence for entries. Attempt all questions and click ‘Submit Quiz’ to see your score and download a PDF of your answers.
Understanding Source Documents and Accounting Vouchers
In accounting, every transaction must be supported by reliable evidence. This evidence is provided by source documents, which are the original records containing the details of a business transaction. Based on these source documents, accounting vouchers are prepared, which serve as the authorization for recording the transaction in the books of accounts. Understanding their roles is fundamental to maintaining accurate and verifiable financial records.
What are Source Documents?
A source document is the first record of a transaction and provides all the necessary details, such as the date, amount, parties involved, and nature of the transaction. They are the foundation of the bookkeeping process and act as objective evidence.
- Evidence: They serve as proof that a transaction has occurred.
- Audit Trail: They are essential for auditors to verify the accuracy of financial statements.
- Legal Requirement: In many cases, maintaining source documents is a legal requirement for tax and other regulatory purposes.
Common Types of Source Documents:
- Cash Memo: Issued when goods are sold for cash. It includes details of goods, quantity, rate, and total price.
- Invoice or Bill: Issued when goods are sold on credit. It contains similar details as a cash memo but also includes the terms of credit.
- Receipt: Issued when cash is received from a customer or any other party. It acknowledges the receipt of payment.
- Pay-in-Slip: A form available at a bank used to deposit cash or cheques into a bank account. The counterfoil, stamped by the bank, acts as the source document.
- Cheque: A document instructing a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued. The counterfoil of the cheque book is used as a source document.
- Debit Note: Prepared when goods are returned to a supplier (Purchase Return).
- Credit Note: Prepared when goods are returned by a customer (Sales Return).
What are Accounting Vouchers?
An accounting voucher is a document prepared by the accountant based on a source document. It specifies which account is to be debited and which is to be credited. Vouchers are then signed by an authorized person and become the basis for making an entry in the journal or subsidiary books.
Key Differences Summarized
| Basis | Source Document | Accounting Voucher |
|---|---|---|
| Origin | It is the primary evidence of a transaction. Can be internal or external. | It is prepared based on a source document for recording purposes. It is always internal. |
| Purpose | To provide proof and details of a business transaction. | To analyze the transaction and decide which accounts to debit and credit. |
| Content | Contains full details like date, amount, parties, description. | Contains the analysis of the transaction in terms of debit and credit. |
| Preparation | Prepared at the time the transaction occurs. | Prepared after the transaction, based on the source document. |
Quick Revision Points
- Every accounting entry must have a supporting voucher.
- Every voucher must be supported by a source document.
- Source documents provide the ‘what, when, where, and how much’ of a transaction.
- Vouchers provide the ‘which account to debit/credit’ instructions.
- Examples of Vouchers include Debit Vouchers (for payments), Credit Vouchers (for receipts), and Transfer Vouchers (for non-cash transactions).
Extra Practice Questions
- Which document is prepared to record non-cash transactions like depreciation?
- If you pay salaries in cash, which type of voucher will be prepared?
- The counterfoil of a pay-in-slip is a source document for which transaction?
- What is the primary difference between an invoice and a cash memo?
- Who is responsible for preparing an accounting voucher in a business?
