Posted at: Jul 11, 2018, 2:10 AM; last updated: Jul 11, 2018, 10:25 AM (IST)

Punjab finally says yes to health scheme

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Kerala HC rejects anticipatory bail pleas of 3 priests in

sexual assault case
Mumbai back on its feet with some help from NDRF,
Navy
Supreme Court slams Centre for ‘lethargy’ in protecting
Taj Mahal
2 police officials shifted in Nirana harassment case in UP
Indian man will finally cut his fingernails after 66 years
Aditi Tandon
Tribune News Service
New Delhi, July 10
The Congress-led Punjab Government has ended its reluctance to join the Centre’s
ambitious National Health Protection Scheme and will soon sign the memorandum of

Ramayana Express to
understanding needed to implement

cover places linked to Lord Ram

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 Kerala HC rejects anticipatory bail pleas of 3 priests in
sexual assault case
Mumbai back on its feet with some help from NDRF,
Navy
Supreme Court slams Centre for ‘lethargy’ in protecting
Taj Mahal
2 police officials shifted in Nirana harassment case in UP
Indian man will finally cut his fingernails after 66 years
New Delhi, July 10
In its latest offering, the railways will run a special train named after Lord Ram covering the
destinations

Ramayana Express to cover places linked to

Lord Ram
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SHA EmailEmailShare to PrintPrint
RES
Also in this section

Kerala HC rejects anticipatory bail pleas of 3 priests in

sexual assault case
Mumbai back on its feet with some help from NDRF,
Navy
Supreme Court slams Centre for ‘lethargy’ in protecting
Taj Mahal
2 police officials shifted in Nirana harassment case in UP
Indian man will finally cut his fingernails after 66 years
New Delhi, July 10
In its latest offering, the railways will run a special train named after Lord Ram covering the
destinations
  New Delhi, July 10 /news/features/health/
Sci/Tech
Movie Reviews

Nation

Posted at: Jul 11, 2018, 1:36 AM; last updated: Jul 11, 2018, 1:36 AM (IST)

Now MPs can speak in native languages in

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Kerala HC rejects anticipatory bail pleas of 3 priests in

sexual assault case
Mumbai back on its feet with some help from NDRF,
Navy
Supreme Court slams Centre for ‘lethargy’ in protecting
Taj Mahal
2 police officials shifted in Nirana harassment case in UP
Indian man will finally cut his fingernails after 66 years
New Delhi, July 10
Beginning next week, members of the Rajya Sabha can speak in any of the 22 Scheduled
languages with the Secretariat arranging simultaneous interpretation facility for five more
languages of Dogri, Kashmiri, Konkani, Santhali and Sindhi.

In its latest offering, the railways will run a special train named after Lord Ram covering the
destinations associated with the mythological character in India and Sri Lanka, an official
statement said. Vijay Mohan

Tribune News Service

Chandigarh, July 10
To curb unwarranted service litigation, the Indo-Tibetan Border Police Force (ITBP) has adopted
a new procedure to redress grievances internally wherein the Additional Director General
(ADG), the second senior-most officer in the force, will grant a personal hearing to aggrieved
personnel once a week.

Vijay Mohan
Tribune News Service
Chandigarh, July 10
To curb unwarranted service litigation, the Indo-Tibetan Border Police Force (ITBP) has adopted
a new procedure to redress grievances internally wherein the Additional Director General
(ADG), the second senior-most officer in the force, will grant a personal hearing to aggrieved
personnel once a week.
Nation

Posted at: Jul 11, 2018, 1:36 AM; last updated: Jul 11, 2018, 1:36 AM (IST)

To curb litigation, top ITBP officer to

intervene
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 Bookkeeping and Accounting for Small
Business
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BY ROSEMARY PEAVLER

Updated December 08, 2018

When you first get started in a small business, you'll hear the terms bookkeeping and
accounting bantered about almost interchangeably. However, these terms do not mean
the same thing. Small businesses have both bookkeeping and accounting
functions, and they are synergistic. It's important to understand the two of them because
organized financial records and balanced finances are central to the success of a small
business.

Bookkeeping Basics

Bookkeeping is the process of the daily record-keeping of all of a company's financial

transactions. Bookkeepers record the sales, expenses, and cash and bank transactions
of the business in a general ledger. The first thing you need to do when you start a
business is realizing that this ledger and its accuracy are central to your company's
finances. Recording these transactions is referred to as posting. A bookkeeper may also
generate invoices and/or complete payroll. The complexity of the bookkeeping process
depends on the size of your business and the number of transactions conducted daily,
weekly, and monthly.
Bookkeeping Methods

The two methods of bookkeeping are single-entry and double-entry. Most businesses
use the double-entry bookkeeping system where every entry to an account requires a
corresponding and opposite entry to a different account. For instance, a $10 cash sale
would require posting two entries: a debit entry of $10 to an account called "Cash" and
a $10 credit entry to an account called "Revenue."

Bookkeeping can be done on a spreadsheet or a lined piece of paper. However, much

of the bookkeeping process today is automated, and the software used also intertwines
some components of the accounting process.

The key attributes of a good bookkeeper are being a stickler for accuracy and
completeness. Because human error can happen to the most thorough bookkeeper, a
bookkeeper usually works under the direction of an accountant.

Accounting Basics

Accounting has been called the language of business. It is the process of measuring,
processing, and communicating financial information. Accounting provides the business
owner with information on the company's resources, the financing of those resources,
and the results the business achieves through their use.

The function of accounting is to prepare a record of the company's financial affairs.

Accounting also includes the interpretation of the numbers prepared by the bookkeeper
to determine the financial health of the business. It also includes the presentation and
financial health and control functions of the company. A further function of accounting is
the preparation of tax and other required financial materials.

Accountant Qualifications

Accountants are trained, licensed professionals, referred to as Certified Public

Accountants (CPAs). CPAs must pass the Uniform Certified Public Accountant exam
and have experience as a professional accountant. In small businesses, the accountant
may also be the owner or chief financial officer (CFO).
The accounting function can also be outsourced to a private entity. In some small
businesses, the bookkeeping and accounting functions are both outsourced.

Even if you, as a small business owner, outsource either or both your bookkeeping and
accounting functions, it’s important that you maintain some understanding and control
over both of them.

Account voucher[edit]
A voucher is an accounting document representing an internal intent to make a payment to
an external entity, such as a vendor or service provider. A voucher is produced usually after
receiving a vendor invoice, after the invoice is successfully matched to a purchase order. A voucher
will contain detailed information regarding the payee, the monetary amount of the payment, a
description of the transaction, and more. In accounts payable systems, a process called a "payment
run" is executed to generate payments corresponding to the unpaid vouchers. These payments can
then be released or held at the discretion of an accounts payable supervisor or the
company controller.
The term can also be used with reference to accounts receivable, where it is also a document
representing intent to make an adjustment to an account, and for the general ledgerwhere there is
need to adjust the accounts within that ledger; in that case it is referred to as a journal voucher.
Any documentary evidence supporting the entries recorded in the books of accounts, establishing
the arithmetic accuracy of the transaction, may also be referred to as a voucher—for example, a bill,
invoice, receipt, salary and wages sheet, memorandum of association, counterfoil of paying-in slip,
counterfoil of cheque book, or trust deed.
 Home > Basic Accounting > PROCEDURE OF PREPARATION OF VOUCHERS

PROCEDURE OF PREPARATION OF
VOUCHERS
Posted By G.S. Bansal, On July 1, 2012

Voucher preparation is very important and responsible job of an accountant. Before he

prepares the vouchers, he has to clear the following terms:-

What is Voucher ? First of all, we would like to understand the meaning of voucher.
Voucher is a very primary accounting record which shows the authenticity of the
transactions. In business so many transactions take place. To record any transaction in
account books, first of all a voucher is prepared by the accountant. Therefore, we call the
vouchers as the base of the accounting system.

Voucher is prepared by the accountant with the help of source document. Source
document means any proof relating to the business transactions. These documents
include:- bills, cash memos, receipts, bank deposit slips, cheque book counter foils,
challans and other details which show the happening of any transaction in a business firm.

The proforma of a voucher depends from company to company but all the vouchers have
almost same details which are to be shown in it. A voucher shows the following details:-

 Serial number of voucher

 Type of Voucher
 Date of Voucher
 Debit Column
 Credit Column
 Amount in figures and words.
 Total Column
 Particulars column in which brief description of the transaction is being mentioned
 Signature of accountant
 Signature of Manager or other authourised person.
 In Case of Bank Payment Voucher or Cash Payment Voucher, signature of receivers is
also shown.
Types of Vouchers:- Generally, the following types of vouchers are prepared in a
business firm:-

 Cash Payment Voucher

 Bank Payment Voucher or Cheque Payment Voucher
 Cash Receipt Voucher
 Bank Receipt Voucher or Cheque Receipt Voucher
 Contra Voucher
 Purchase Voucher
 Sales Voucher
 Journal Voucher
 Sales Return Voucher
 Purchase Return Voucher
Duties of Accountant in respect of preparation of any voucher:-

Vouchers are the base of whole accounting system. The accountant has to be very careful
while preparing the vouchers. Voucher is an initial document of accounting system. If there
is any mistake while preparing the voucher then every thing, automatically will become
wrong. Therefore, an accountant must follow the following procedure while preparing the
vouchers:-

1. He must verify the supporting documents thoroughly in respect of date, amount, nature of
transactions etc.
2. The supporting documents must be approved by an appropriate authority.
3. Then, the accountant has to select the type of voucher to be prepared for the transaction.
4. He must have the thorough knowledge of accounting rules.
5. He has to make sure that the total of debit and credit side of voucher are equal.
6. The accountant must have good command over the various accounting heads which are
supposed to be debited or credited.
Simple Rules of Accounting:- As we know that the voucher contains debit and credit part.
But what is debit and what is credit? One has to understand it very thoroughly because
whole accounting system depends on debit and credit. In accounting system we follow the
double entry system. It means that according to the nature of transaction, one account
head is to be debited while other account head is to be credited with the same amount.

Account head means a name of account under which all similar type of transactions are
recorded. For example:- All expenses relating to printing and stationery will be debited
under “Printing & Stationery Expenses Account” head. All Sales will be recorded under
“Sales Account” and so on.These accounting heads are prepared after keeping in view the
requirement of management or by concerned laws. Normally, the nature of the transactions
are self explained by the account heads.

At the time of preparation of voucher, the accountant must assign the correct account head
otherwise every thing will be wrong and will result into wrong information. Therefore, every
voucher is checked by some supervisor to avoid the mistakes. Every voucher must be
signed by the accountant and the supervisor and must be supported with proof of
transaction.

Rules of Debit and Credit

Following are the simple rules for Debiting or Crediting the Accounting Heads:-

Rule No. 1:- Debit what comes in i.e. any thing which is received by firm in physical
position.

Examples:-

(a) Cash received by the business firm. In this case, cash is coming in the business.
Therefore, Cash Account will be debited.

(b) Furniture purchased by business firm. It means furniture is coming in the business.
So, FurnitureAccount should be debited.

Rule No. 2:- Credit what goes out i.e. any thing which goes out of the business firm
in physical position.

Examples:-

(a) Cash paid by the firm. It means cash is going out of the firm. In this case the Cash
Account will be credited.

(b) Suppose a company has sold its old vehicle, then the Vehicle Account will be credited
because the vehicle is going out of the business.

Rule No. 3:- Debit the receiver. Here, receiver means any third party.

Examples:-

(a) Goods sold to M/s ABC Limited. In this transaction, the receiver is M/s ABC Ltd..
Therefore M/s ABC Ltd. will be debited.

(b) Cash paid to M/s Supple Rubbers. In this example, M/s Supple Rubber is receiver.
Therefore, M/s Supple Rubber will be Debited.

(c) Cheque received from a party and deposited in to bank. In this case, The Bank is the
receiver of cheque. Though, initially the cheque is received by the business firm but it has
no physical value unless it is deposited in to bank. Therefore, The Bank Account will be
debited.

Rule No. 4:- Credit the giver. Here, giver means any third party.

Example:-

(a) Cash received from M/s Bombay Rubber Chemicals. In this case, M/s Bombay Rubber
Chemicals will be credited since they are the giver of cash.

(b) Goods purchased from M/s Morning Place. In this example, M/s Morning Place will be
credited since they are the supplier of goods.

Rule No. 5:- Debit all the Expenses.

All expenses of a business firm must be debited to a suitable account head.

Example:-

(a) Conveyance Expenses paid to a staff. In this case Conveyance Expenses Account
should be debited.

(b) Salaries paid to employees should be debited to Salaries Account.

(c) Expenses relating to traveling should be debited to Traveling Expenses Account.

(d) Depreciation on Fixed Assets should be debited to Depreciation Account.

Same way, different type of expenses in respect of business should be debited to concern
account heads.

Rule No. 6:- Credit all the income.

All income of a business firm should be credited to suitable account head.

Example:-

(a) Sale of goods:- Sales of trading items, should be credited to sales account because sale
is the income of a business firm.
(b) Interest received from banks or from other parties:- Interest Received account will be
credited in case of interest receipts.

(c) Commission received:- In this case Commission is income of business firm. Therefore,
Commission Received will be credited.

In similar way, any other income of a business firm, will be credited in suitable heads.

IMPORTANT NOTES TO BE REMEMBERED IN CASE OF SELECTION OF PROPER

ACCOUNT HEAD

1. Every receipt is not an income:- For example – Receipts may be relating to personal
account not an income

2. Every payment is not an expenditure:- For example – Payment may relate to Personal
accounts is not an expenditure.

3. There are certain cases where no payment is made, even then the expenditures are
debited. For example:- Depreciation of fixed assets, Expenses payable or provision for
expenses.

4. There are certain cases where no amount is received, even then income is
credited. For example:- Interest receivable, Commission receivable etc.

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