A payment voucher is the prime accounting record for making payments in any company or business organization.
Payment voucher normally contains the details of payments with the head of account under which the payment is to be made, to whom the payment has to be made, amount to be paid, cheque number under which the amount is paid, authority or order for making the payment, passing authority's approval for making the payment.
Payments are of two types. One type of payment through payment voucher is straight away payment. Under this type of payment voucher, payment will be made straight to the party concerned without any adjustments or recovery.
Another type of payment is payment with adjustments. It means payment voucher is prepared for making payment after adjusting the dues to the company or business organization. Normally adjustments will be recovering the balance amount for the previous sales and salary adjustments from the staff like advances already paid and now recovered in the salary.
Under the payment with adjustments net amount only will be paid to the payee after adjusting the dues from them.
Entries from this type of payment voucher will be recorded in the cashbook and the gross payment will be taken into the respective head of account under debit side in the general ledger and the adjustment amount will be taken into the credit side of the general ledger.
Payment voucher normally contains the details of payments with the head of account under which the payment is to be made, to whom the payment has to be made, amount to be paid, cheque number under which the amount is paid, authority or order for making the payment, passing authority's approval for making the payment.
Payments are of two types. One type of payment through payment voucher is straight away payment. Under this type of payment voucher, payment will be made straight to the party concerned without any adjustments or recovery.
Another type of payment is payment with adjustments. It means payment voucher is prepared for making payment after adjusting the dues to the company or business organization. Normally adjustments will be recovering the balance amount for the previous sales and salary adjustments from the staff like advances already paid and now recovered in the salary.
Under the payment with adjustments net amount only will be paid to the payee after adjusting the dues from them.
Entries from this type of payment voucher will be recorded in the cashbook and the gross payment will be taken into the respective head of account under debit side in the general ledger and the adjustment amount will be taken into the credit side of the general ledger.
