Vouchers — The Proof of Every Transaction

Meera's second week at Sharma Sir's office. She walks in Monday morning and finds Negi Bhaiya surrounded by small slips of paper — some printed, some handwritten. "What are all these?" she asks. Negi Bhaiya grins. "These are vouchers. Every single rupee that moves — in or out — needs a voucher. No voucher, no proof. No proof, no accounting." He picks up one slip. "Rawat Aunty dropped these off Saturday. Her whole week's transactions. Today, you and I are going to sort them."

Why Vouchers Matter

Imagine this. You lend Rs. 500 to a friend in your village. A month later, your friend says, "I never borrowed money from you." You have no proof. No witness. No written note. What can you do? Nothing.

Now imagine the same thing in a business. Rawat Aunty buys goods worth Rs. 10,000 from a supplier. She pays cash. But there is no paper, no record. Later, the supplier says, "You still owe me Rs. 10,000." What will Rawat Aunty do?

This is why vouchers exist.

A voucher is a written document that proves a transaction happened.

It is the foundation of all accounting. Before you write anything in a journal or ledger, you need a voucher. The voucher is the source document — the original proof.

Think of it like this:

• A bus ticket is proof you paid for the ride.
• A receipt from a medical shop is proof you bought medicine.
• A bank deposit slip is proof you put money in the bank.

In accounting, a voucher is proof that money moved.

Sharma Sir puts it simply:

"Meera, remember this rule for life — no voucher, no entry. If there is no document to support a transaction, you do not record it. Ever."

The 6 Types of Vouchers

Not all transactions are the same. Money comes in. Money goes out. Money moves between accounts. Goods are sold. Goods are bought. Each type of transaction gets its own type of voucher.

Here are the six vouchers you must know:

Let us look at each one with a real example from Rawat Aunty's shop.

1. Receipt Voucher

Use when: The business receives money from someone.

Rawat Aunty sells groceries to a customer. The customer pays Rs. 350 in cash. Money is coming into the shop. This needs a receipt voucher.

Other examples:

• A customer pays an old bill
• The owner brings personal money into the business
• The business receives a refund from a supplier

Key point: Cash or bank balance increases.

2. Payment Voucher

Use when: The business pays money to someone.

Rawat Aunty pays her monthly shop rent of Rs. 5,000 to the landlord. Money is going out of the shop. This needs a payment voucher.

Other examples:

• Paying a supplier's bill
• Paying electricity bill
• Paying salary to a helper
• Buying office supplies

Key point: Cash or bank balance decreases.

3. Contra Voucher

Use when: Money moves between the business's own cash and bank accounts. No outside person is involved.

Rawat Aunty takes Rs. 20,000 cash from her shop counter and deposits it in her bank account at the SBI branch in Almora. The money is still hers. It just moved from one place (cash box) to another place (bank). This needs a contra voucher.

Other examples:

• Withdrawing cash from bank for shop use
• Transferring money from one bank account to another

Key point: Total money stays the same. It just changes location.

Think of it like pouring water from one glass to another. You still have the same amount of water.

4. Journal Voucher

Use when: There is no actual cash involved, but you still need to make an accounting entry.

At the end of the year, Sharma Sir tells Rawat Aunty that her wooden shelves (worth Rs. 15,000) have lost Rs. 1,500 in value due to wear and tear. This is called depreciation. No cash is paid to anyone. But the value of the shelves has gone down, so it must be recorded. This needs a journal voucher.

Other examples:

• Correcting a mistake in a previous entry
• Writing off a bad debt (a customer who will never pay)
• Adjusting prepaid expenses

Key point: No cash moves. But the books need to be updated.

5. Sales Voucher (or Sales Invoice)

Use when: The business sells goods or services.

Rawat Aunty sells 10 kg of rice, 5 kg of sugar, and 2 packets of tea to a customer. She makes a bill. This bill is the sales voucher.

Other examples:

• Any sale of goods — whether cash or credit
• Providing a service and billing for it

Key point: Goods or services go out. Revenue comes in.

6. Purchase Voucher (or Purchase Invoice)

Use when: The business buys goods or services.

Rawat Aunty buys stock for her shop — 50 kg rice, 20 kg dal, 10 kg sugar — from a wholesaler in Haldwani. The wholesaler gives her a bill. This bill is the purchase voucher.

Other examples:

• Buying raw materials
• Buying goods for resale
• Buying a service (like getting the shop painted)

Key point: Goods or services come in. Money goes out (or a payable is created).

What Goes on a Voucher?

Every voucher — no matter which type — must contain certain information. Think of it as the voucher's "ID card."

Here are the essential parts:

Sharma Sir explains:

"The narration is very important, Meera. It tells the story of the transaction. Write it clearly. Years later, if someone reads this voucher, they should understand what happened."

Sample Vouchers — Filled Out

Let us now see three real vouchers that Meera fills out for Rawat Aunty's shop.

Sample 1: Payment Voucher

Rawat Aunty pays rent of Rs. 5,000 for her shop for the month of July 2025.

╔══════════════════════════════════════════════════════════════╗
║                   RAWAT GENERAL STORE                       ║
║              Main Road, Almora, Uttarakhand                 ║
║                                                              ║
║                    PAYMENT VOUCHER                           ║
║                                                              ║
║  Voucher No.: PV-042            Date: 15-Jul-2025           ║
║                                                              ║
║  Paid To: Shri Pant Ji (Landlord)                           ║
║                                                              ║
║  Account Debited:  Rent Account                              ║
║  Account Credited: Cash Account                              ║
║                                                              ║
║  Amount: Rs. 5,000.00                                        ║
║  (Rupees Five Thousand Only)                                 ║
║                                                              ║
║  Narration: Being shop rent paid for the month of            ║
║  July 2025 to Shri Pant Ji, landlord.                        ║
║                                                              ║
║                                                              ║
║  Prepared By: Meera         Authorized By: Rawat Aunty      ║
║                                                              ║
╚══════════════════════════════════════════════════════════════╝

Why is Rent Account debited? Because rent is an expense. Expenses increase on the debit side.

Why is Cash Account credited? Because cash is going out. When cash goes out, you credit the Cash Account.

Sample 2: Receipt Voucher

A regular customer, Dimri Ji, pays Rs. 2,500 in cash to settle his old bill.

╔══════════════════════════════════════════════════════════════╗
║                   RAWAT GENERAL STORE                       ║
║              Main Road, Almora, Uttarakhand                 ║
║                                                              ║
║                    RECEIPT VOUCHER                           ║
║                                                              ║
║  Voucher No.: RV-078            Date: 15-Jul-2025           ║
║                                                              ║
║  Received From: Shri Dimri Ji                                ║
║                                                              ║
║  Account Debited:  Cash Account                              ║
║  Account Credited: Dimri Ji's Account (Debtor)              ║
║                                                              ║
║  Amount: Rs. 2,500.00                                        ║
║  (Rupees Two Thousand Five Hundred Only)                     ║
║                                                              ║
║  Narration: Being cash received from Shri Dimri Ji           ║
║  against his outstanding balance.                            ║
║                                                              ║
║                                                              ║
║  Prepared By: Meera         Authorized By: Rawat Aunty      ║
║                                                              ║
╚══════════════════════════════════════════════════════════════╝

Why is Cash Account debited? Because cash is coming in. When cash comes in, you debit the Cash Account.

Why is Dimri Ji's Account credited? Because he owed money (he was a debtor). Now that he has paid, his balance goes down. Crediting his account reduces what he owes.

Sample 3: Contra Voucher

Rawat Aunty deposits Rs. 20,000 cash into her SBI bank account.

╔══════════════════════════════════════════════════════════════╗
║                   RAWAT GENERAL STORE                       ║
║              Main Road, Almora, Uttarakhand                 ║
║                                                              ║
║                    CONTRA VOUCHER                            ║
║                                                              ║
║  Voucher No.: CV-011            Date: 15-Jul-2025           ║
║                                                              ║
║  Account Debited:  SBI Bank Account                          ║
║  Account Credited: Cash Account                              ║
║                                                              ║
║  Amount: Rs. 20,000.00                                       ║
║  (Rupees Twenty Thousand Only)                               ║
║                                                              ║
║  Narration: Being cash deposited into SBI Almora             ║
║  branch account.                                             ║
║                                                              ║
║                                                              ║
║  Prepared By: Meera         Authorized By: Rawat Aunty      ║
║                                                              ║
╚══════════════════════════════════════════════════════════════╝

Why is Bank Account debited? Because the bank balance is increasing. Bank is an asset. Assets increase on the debit side.

Why is Cash Account credited? Because cash is going out of the cash box. Cash is decreasing.

Notice: no outside party is involved. The money simply moved from one pocket to another.

How Meera Remembers the Types

Negi Bhaiya teaches Meera a simple trick:

"Ask yourself two questions. First — is cash involved? Second — which direction is the money going?"

Here is the decision flow:

Step 1: Is cash or bank involved in this transaction?

• YES, and money is coming IN → Receipt Voucher
• YES, and money is going OUT → Payment Voucher
• YES, but it is moving between our OWN cash and bank → Contra Voucher
• NO cash involved at all → Journal Voucher

Step 2: Is this a sale or purchase of goods?

• Selling goods → Sales Voucher
• Buying goods → Purchase Voucher

(Note: A cash sale will have both a sales voucher for the sale and a receipt voucher for the cash. In practice, many small businesses combine them into one document — the sales bill.)

Voucher Numbering

Sharma Sir is particular about numbering.

"Every voucher must have a unique number, Meera. This is how we track them. If voucher PV-042 goes missing, we know immediately because PV-041 exists and PV-043 exists, but 042 is gone."

The common system:

Numbering starts fresh at the beginning of each financial year (April 1).

Supporting Documents

A voucher alone is not enough. It should be attached to a supporting document — the original bill, receipt, or invoice that proves the transaction.

For example:

Sharma Sir keeps all vouchers in a file, organized by date. Each voucher has its supporting document stapled behind it.

"If the Income Tax officer ever visits, or if there is a GST audit," Sharma Sir says, "they will ask for vouchers. If you have them neat and organized, you are safe. If not..." He shakes his head. "Trouble."

Meera's First Voucher

It is 11 AM. Rawat Aunty calls the office.

"Sharma Sir, my helper Kamla needs her salary. Rs. 4,000 for July. Can Meera make the voucher?"

Sharma Sir nods at Meera. "Go ahead. You know what to do."

Meera thinks it through:

1. What is happening? Rawat Aunty is paying salary to Kamla.
2. Is cash involved? Yes.
3. Which direction? Cash is going out.
4. So which voucher? Payment Voucher.
5. Which account is debited? Salary Account (it is an expense — expenses are debited).
6. Which account is credited? Cash Account (cash is going out — cash is credited).

She fills it out carefully:

╔══════════════════════════════════════════════════════════════╗
║                   RAWAT GENERAL STORE                       ║
║              Main Road, Almora, Uttarakhand                 ║
║                                                              ║
║                    PAYMENT VOUCHER                           ║
║                                                              ║
║  Voucher No.: PV-043            Date: 15-Jul-2025           ║
║                                                              ║
║  Paid To: Smt. Kamla Devi (Helper)                          ║
║                                                              ║
║  Account Debited:  Salary Account                            ║
║  Account Credited: Cash Account                              ║
║                                                              ║
║  Amount: Rs. 4,000.00                                        ║
║  (Rupees Four Thousand Only)                                 ║
║                                                              ║
║  Narration: Being salary paid to Smt. Kamla Devi             ║
║  for the month of July 2025.                                 ║
║                                                              ║
║                                                              ║
║  Prepared By: Meera         Authorized By: Rawat Aunty      ║
║                                                              ║
╚══════════════════════════════════════════════════════════════╝

Sharma Sir checks it. "Perfect," he says. "Your first voucher. Many more to come."

Meera smiles. It is a small piece of paper. But it means something. She just created an official accounting document.

Quick Recap

• A voucher is a written document that proves a transaction happened.
• There are 6 types: Receipt, Payment, Contra, Journal, Sales, Purchase.
• Receipt Voucher = money comes in.
• Payment Voucher = money goes out.
• Contra Voucher = money moves between cash and bank (internal).
• Journal Voucher = no cash involved, just adjustments.
• Sales Voucher = goods or services sold.
• Purchase Voucher = goods or services bought.
• Every voucher must have: date, voucher number, amount (figures and words), accounts affected, narration, and authorization.
• No voucher = no entry. This is a golden rule.
• Always attach supporting documents (bills, receipts) to vouchers.

Practice Exercise — Try This Yourself

Identify the correct voucher type for each transaction below. Then fill out a complete voucher for any two of them.

Answers:

1. Purchase Voucher (and Payment Voucher for the cash payment)
2. Receipt Voucher (and Sales Voucher for the sale)
3. Contra Voucher
4. Payment Voucher
5. Receipt Voucher
6. Sales Voucher
7. Journal Voucher
8. Contra Voucher

Bonus: Pick any two transactions above and write out the complete voucher — with date, voucher number, accounts debited and credited, amount in words and figures, narration, and authorization.

Fun Fact

In ancient India, merchants kept records on palm leaves and cloth. The Arthashastra, written by Chanakya over 2,000 years ago, describes rules for keeping financial records and auditing them. Even back then, the principle was the same — write it down, keep proof, and check the numbers. When you fill out a voucher today, you are following a tradition that is older than most countries in the world!

In the next chapter, Meera will take all these vouchers and write them into a journal — the "diary" of accounting. The real bookkeeping begins.