Vouching of cash transactions

Vouching of cash transactions.

Basically vouching of cash receipts are done on the debit side of the cash book and it is stated that opening balance of the cash book indicates cash in hand at the start of the year and compared from the financial report of the last year taking this balance as closing stock. So the process of comparing and tallying the entire sheets in the book of account with the support like cash memos, receipts and other documents is known as vouching and the touching of cash transaction is the most important factor of account books for any business.


  1. All Vouchers are Accounted.
  2. No Fraudulent payment is made.
  3. All receipt & payment are properly recorded.
  4. Verify cash in hand & cash at bank.

What are the general points to be considered while vouching cash transactions.

The auditor has to kept several points while touching of these cash transactions. These points are the first internal check system which states that the auditor has to enquire about the internal check system in the operation. Secondly, the auditor should check and verify the system of accounting just for its accuracy in recording cash transactions. Third, the auditor has to compare the rough cash book to the cash book so by this the accounts get clear or if there is an error in the accounting system the auditor is able to detect that and correct that. Mainly the auditor is responsible for preparing the bank reconciliation statement and ensuring the proper control of receipt book and the auditor is responsible for taking care of all receipts whether they are or they are not in the printed form.

What is the role of vouching at the time of wages and salaries?

The auditors are hereby responsible for the proper cash flow in any organization they are working or any company they are in so just like his at the times of salaries and wages to the employees they have their part it be played such as they have to maintain an attendance record of employees and salary register. They are the recruiter of new employees as every appointment letter has to be passed by them. But the scenario is different when it comes to wages as the adequacy of internal system control is looked for in the system of wages. Some other points consisting of payment or fictitious workers, payment to the workers absent from duty, wages sheets to be compared with wages register at last and most important detailed verification for payment to casual workers. These are the points where the auditors were needed.


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