Payment voucher is prepared for all payments, made by the business firm directly or through its bankers. In all business organizations, mostly the payments are made in following manners:-

  1. Payment in cash.
  2. Payment by cheques.
  3. Payment by demand drafts or pay orders.
  4. Payment made directly by bank on behalf of the business clients.
  5. Payment also can be made by third party on behalf of business firm. But, in this case, no payment voucher shall be made. For this type of transaction, journal voucher shall be prepared.

Type of Payment Vouchers

In a small business organizations where the cash and bank payment transactions are very limited, single type of payment voucher is sufficient for all type of payments but it is not possible with a big organizations to make single type of payment voucher for all type of payment transactions keeping in view the number of payment transactions.  In that case,  two types of payment voucher can be prepared for control purpose  as follows:-

  1. Cash Payment Voucher:- These vouchers are used only in case of cash payment.
  2. Bank Payment Voucher: These vouchers are used when the payment is made through bankers of business firm.

SOURCE DOCUMENTS FOR PAYMENT VOUCHERS

As we know that no voucher can be prepared unless there is any source document available. For making payment vouchers, following are the source document:-

  1. Cash Memo:- Cash memo is the proof of any material purchased for official purpose. It is like invoice or bill.
  2. Receipts:- Receipts are given by either by service providers or the persons who receive the payment from a business firm against their running account. Practically, when a business organization purchases material or services from outside on credit basis and later on, it makes the payment to the suppliers of goods or services, the issue the receipt as a proof for payment made by the firm. Receipt is also a proof for different type of deposits and advances also i.e. security deposits, advance payment made etc.
  3. Challans:- In India, all taxes are made through prescribed challans by different department. When the payment is made to these departments, they give a copy of a challan as a proof of payment.
  4. Details Prepared by Staff:- There are so many types of transactions against which no receipts or bills or cash memos can be produced by the person who has spent the money for official purpose. For these type of payments or expenditures, the details are prepared by staff and authorized by appropriate authority for making the payment. For example, Conveyance expenses, no receipt can be furnished by the staff. Like this there may be so many petty transactions, against which no proof is shown except the details prepared by the staff.

Precautions To Be Taken While Making The Payments

Any person who makes the payment, is supposed to prepare proper payment voucher and he must follow the following points while making the payments:-

  • Proper voucher must be selected for payment i.e. Cash Payment Voucher or Bank Payment Voucher or Payment Voucher (if no separate vouchers are prepared for payment in cash or through bank.
  • Date of payment must be written on voucher.
  • The payment voucher must be serially numbered.
  • Amount should be written both in figures and words.
  • Proper account heads should be debited.
  • Cash account should be credited if the payment is made by cash.
  • Bank account should be credited if the payment is made by cheque (always name of bank must be written).
  • The receiver of money must sign the voucher.
  • The voucher must be signed by the authorized person who has the authority to instruct the cashier to pay the money.
  • Proper source document must be attached with the payment voucher.

Illustration – 1

Conveyance Expenses reimbursed to Mr. A for Rs.1522/= as per detail submitted by him on 31.07.12 Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited.

Solution:

Cash Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CASH PAYMENT VOUCHER

Voucher No. 1011                                                                   Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: Conveyance Expenses Account

1522/=

TOTAL

1522/=

CREDIT: Cash Account

1522/=

TOTAL

1522/=

Narration: Being cash paid to Mr. A towards reimbursement of his conveyance expenses as per the details enclosed.
Amount in Words: Rupees one Thousand Five Hundred Twenty Two only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

Illustration 2

Rs.8000/= paid to M/s Gift House in cash vide their Receipt No, 555 dated 31.07.12 Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited.

Solution:

Cash Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CASH PAYMENT VOUCHER

Voucher No. 1012                                                                    Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: Gift House

8000/=

TOTAL

8000/=

CREDIT: Cash Account

8000/=

TOTAL

8000/=

Narration: Being cash paid to M/s Gift House as per their Receipt No.1555 dated 31.07.12 enclosed.
Amount in Words: Rupees Eight Thousand only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

Illustration 3

Stationery purchased for Rs.1012/= from M/s Prince Stationers vide their Cash Memo No. 101 dated 31.07.12. Prepare the necessary voucher of the same transaction in the books of M/S XYZ Limited.

Solution:

Cash Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

CASH PAYMENT VOUCHER

Voucher No. 1013                                                                    Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: Printing & Stationery Expenses Account

1012/=

TOTAL

1012/=

CREDIT: Cash Account

1012/=

TOTAL

1012/=

Narration: Being stationery purchased from M/s Prince Stationers as per their Cash Memo No. 101 dated 31.07.12 enclosed.
Amount in Words: Rupees One Thousand and Twelve only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

Illustration 4

M/s ABC Enterprises issued Cheque No. 458970  to M/s Gift House on 25.07.12 on our behalf  vide Debit Note No. 111 dated 25.07.12 of M/s ABC Enterprises.

Solution:

Note: Payment Voucher is made only in case when the payment is made by the business firm in cash or through its bankers. In above illustration, payment is made by third party. Therefore, for this transaction, Journal Voucher shall be prepared. Please refer to Journal Voucher for this type of transactions.

Illustration 5

Cheque No. 10101 of State Bank of India issued to M/s Morning Place vide their Receipt No. 412 dated 31.07.12. Prepare the necessary voucher of the same transaction in the books of M/S XYZ LIMITED.

Solution:

Bank Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

BANK PAYMENT VOUCHER

Voucher No. 125                                                                     Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: M/s Morning Place

40000/=

TOTAL

40000/=

CREDIT: State Bank of India Account

40000/=

TOTAL

40000/=

Narration: Cheque No. 10101 issued to M/s Morning Place as per their Receipt No. 412 dated 31.07.12 enclosed.
Amount in Words: Rupees Forty Thousand only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

Illustrations 6

Bank charges for Rs.550/= debited on 31.07.12 by State Bank of India in our account as per their statement of account for the month of July,2012. Prepare the necessary voucher of the same transaction in the books of M/S XYZ LIMITED.

Solution:

Bank Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

BANK PAYMENT VOUCHER

Voucher No. 127                                                                     Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: Bank Charges Account

550/=

TOTAL

550/=

CREDIT: State Bank of India Account

550/=

TOTAL

550/=

Narration: Being bank charges debited State Bank of India in our current account as per Bank statement of account for the month of july.
Amount in Words: Rupees  Five Hundred Fifty only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

 

Illustration 7

An amount for Rs.75000/= paid to M/s Supple Enterprises, directly by State Bank of India vide Banker’s Debit Advice no. 1145 dated 31.07.12 Prepare the necessary voucher of the same transaction in the books of M/S XYZ LIMITED.

Solution:

Bank Payment Voucher shall be prepared for the above transaction as follows:

M/S XYZ LIMITED

BANK PAYMENT VOUCHER

Voucher No. 126                                                                     Date:  31.07.12

PARTICULARS

 AMOUNT

(IN RS.)

DEBIT: M/s Supple Enterprises

75000/=

TOTAL

75000/=

CREDIT: State Bank of India Account

75000/=

TOTAL

75000/=

Narration: Being fund transferred by State Bank of India in account of M/s Supple Enterprises as per Banker’s Debit Advice No.1145 dated 31.07.12 enclosed
Amount in Words: Rupees Seventy Five Thousand only.
Receiver’ Signature                  Manager’s Signature                     Cashier’s Signature

 

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