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A cash voucher is usually a small form that is used to document a payment from a money fund. Cash vouchers are also referred to as cash receipts or petty cash receipts and can be purchased from company or office supply stores.
The cash voucher should provide space for the date, name of person receiving the cash, amount disbursed, reason for the disbursement, ledger account to be charged, and also the initials of the person disbursing from the cash fund. Some cash vouchers are pre numbered and sometimes a number is assigned for reference and management. Receipts or other documentation justifying the disbursement should be attached to the money voucher.
The cash voucher is a very important form of proof for adaptive the remaining cash in the fund box. At the start of an accounting period, there should be a particular amount of money in the box and no vouchers. Then, as cash is disbursed from the fund box, the vouchers are basically swapped for money. Thus, at the end of the month, the entire amount within the cash box should still equal the balance at the start of the month – except that currently the total is comprised of each cash and vouchers.
If there’s a difference between the beginnings and ending figures, then it’s seemingly that money was removed without any voucher documentation, or else that the amount on a voucher was incorrectly stated. At month-end, the information within the vouchers is compiled to make a journal entry to credit the cash account and debit a variety of expense accounts. The vouchers are attached to the journal entry as proof of the underlying transaction.
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