Definition
A Voucher Register is a book or digital ledger where vouchers are recorded, generally in chronological and numerical order. Vouchers are original documents such as invoices, receipts, or bills that serve as evidence for business transactions. They form the basis for making journal entries and providing an ongoing record of financial activities.
Examples
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Accounts Payable Voucher Register: This type of register lists all vouchers related to payment obligations. For example, when a company receives a supplier’s invoice, the details are recorded in this register, including the date, voucher number, supplier’s name, and amount.
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Employee Expense Voucher Register: Used to record the expense claims submitted by employees. The register would log details such as the date of the expense, the employee’s name, the purpose of the expense, and the amount.
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Petty Cash Voucher Register: This register is used to track small, routine expenses paid from the petty cash fund. Each entry would include the date, voucher number, description of the expense, and the amount.
Frequently Asked Questions
Q1: Why is a voucher register important in accounting?
A1: A voucher register is crucial for maintaining an organized and transparent record of all financial transactions within a business. It helps in ensuring that all transactions are documented, can be easily verified and traced back, and assists in preparing accurate financial statements.
Q2: What information is typically included in a voucher register?
A2: A voucher register typically includes the date of the transaction, voucher number, description or purpose of the transaction, amount, and any related party names (such as suppliers or employees).
Q3: Is it mandatory for businesses to maintain a voucher register?
A3: While not legally mandatory for all businesses, maintaining a voucher register is considered a best practice in accounting. It aids in the integrity of financial data and compliance with auditing standards.
Q4: Can a voucher register be maintained electronically?
A4: Yes, many businesses use accounting software to maintain electronic voucher registers, which improves efficiency, accuracy, and ease of access compared to traditional manual registers.
Q5: How does a voucher register differ from a general ledger?
A5: A voucher register specifically records vouchers or original documents representing financial transactions, often in more detail. The general ledger summarizes all transactions, including those from the voucher register, providing a broader view of the financial situation of the business.
Related Terms
- Voucher: An original document serving as proof of a business transaction.
- Accounts Payable: Money owed by a business to its suppliers shown as a liability on a company’s balance sheet.
- Journal Entry: An accounting transaction recorded directly in the accounting books.
- Petty Cash: A small amount of discretionary funds in the form of cash used for expenditures where writing a check would be inconvenient.
- General Ledger: A complete record of all financial transactions over the life of a company.
Online Resources
Suggested Books for Further Studies
- “Accounting: Tools for Business Decision Making” by Paul D. Kimmel, Jerry J. Weygandt, and Donald E. Kieso
- “Financial Accounting” by Robert Libby, Patricia Libby, and Frank Hodge
- “Fundamentals of Financial Accounting” by Fred Phillips, Robert Libby, and Patricia Libby
- “Accounting Principles” by Jerry J. Weygandt, Paul D. Kimmel, and Donald E. Kieso
Fundamentals of Voucher Registers: Accounting Basics Quiz
Thank you for exploring the detailed aspects and importance of voucher registers in accounting. Strive to keep accurate and organized financial records!
