VOUCHING
Que. 1.
Define vouching.
Ans.:
According to F. R. M. De Paula, Vouching does not mean merely the in spection
of receipts with the cash book, but includes the examination of receipts with
transactions of a business, together with documentary and other evidence of
sufficient.
Que. 2.
Define Voucher.
Ans.: The
term voucher means documentary evidence supporting book entries is called
voucher. It may be an acknowledgement either for cash received or cash paid,
pay on slip book for bank deposits, or cheques issued for payments, wage bill
or salary bill for wages or salary paid during the period under review are the
examples of vouchers.
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| Types of Voucher:4 |
Que. 3.
What are the types of vouchers?
Ans.: 1.
Primary Vouchers. 2. Collateral or Secondary Vouchers. 3. Adequacy
and
Reliability of Voucher.
Que. 4.
What is Collateral or Secondary Vouchers?
Ans.: In
case, the primary vouchers are not available, or available but not satisfactory
requiring further clarification other documentary evidences supporting book
entries are called collateral or secondary vouchers. For Ex. Cash memo for
payment in cash or by cheques is a primary voucher, in case of need a carbon
copy of cash memo or counter folio of cheques issued are the examples of
collateral or secondary vouchers.
Que. 5. What
is Primary Voucher? Give example.
Ans.:
Original documentary evidences like cash memo for cash receipts or payments,
purchase or sales invoice for purpose and sale pay in slip book for bank
deposits, cheques issued for payments or the documentary evidences supporting
transactions are the examples of primary vouchers.
Que. 6.
What is mean by Vouching of Outstanding Assets?
Ans.:
Incomes earned but not received or expenses paid but no service is consumed are
called outstanding assets. Unless all outstanding assets are correctly adjusted
in preparation of final accounts auditor cannot certify the profit and loss
account showing true results and balance sheet reflecting true financial
position of client business.
Que. 7.
What are the two types of Vouching of Outstanding Assets?
Ans.:
1.Prepaid Expenses or Unexpected expenses.
2. Accrued
or Outstanding Incomes.
Que. 8.
What the General principles of Vouching Cashbook.
Ans.: 1.
Great degree of care and caution: Vouchers forms base for confirming the
correctness of books entries. A high degree of care and caution is to be applied in determining the
authentically and acceptability of evidence.
2.Arrangements
of Vouchers: Ensure that all vouchers have been arranged in order of
serial number and tide up properly.
3. Voucher
Number : The entries in the books of accounts should bear the same number
as it appear on the voucher.
Que. 9.
What are the types of Ledgers?
Ans.:
Ledgers have been grouped into three, they are-
- Bought
Ledger or
purchase ledger or creditors ledger, which covers the ledger accounts of
all suppliers or creditors who have supplied goods on credit to our
business
- Sold
Ledger or
sales ledger. or debtor's ledger, which covers all personal accounts of
customers to whom the business has sold goods on credit
- General
Ledger or
impersonal ledger, which covers all ledgers, accounts except creditors and
debtors ledgers.
Que. 10.
What do you mean by outstanding Expenses or Unpaid Expenses?
Ans.
Expenses incurred but not paid services consumed for which service charges have
not been paid at the end of the year are called outstanding expenses or unpaid
expenses. For ex. wages and salary for the last month, rent rates and taxes of
the last month, outstanding commission, outstanding interest on debentures etc,
Que. 11.
What do you mean by outstanding income?
Ans.:
Incomes earned but not received are called accrued incomes or outstanding
incomes. Ex. interest accrued but not received, rent accrued but not received,
commission earned but not received are the examples of accrued or outstanding
incomes.
Que. 12.
What is cut off point in auditing?
Ans.: The
term "cut-off point" refers to the point of time at which the
transactions of the trading year comes to an end. Number of times it is found
that transactions at the beginning and transactions at the end are included in
the same year which is not correct. Therefore it should be seen that at what
point of time the transactions of the current year comes to an end.
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