Vouching of expenditure

Vouching of expenditure. Vouching of expenditure.

[Audio] Meaning Vouching of expenditure refers to the process of verifying and confirming the accuracy and authenticity of expenses incurred by an individual or organization. It involves reviewing and validating the supporting documents and records to ensure that the expenses are genuine reasonable, and in line with established policies and procedures.

[Audio] Genuine Reasonable Authorised Compliant with policies and procedures Properly accounted for.

[Audio] Vouching aim to : Prevent fraudulent or unauthorised transactions Ensure accuracy and completeness of financial records Verify compliance with regulations and policies Identify discrepancies or irregularities.

[Audio] Types of vouching Test checking : selective verification of transactions Total verification : comprehensive verification of all transactions Continuous verification : ongoing monitoring and verification.

[Audio] Vouching techniques Document verification ( for example , invoice receipts ) Physical verification (for example , inspection of assets ) Confirmation ( e g , from suppliers , customers) Analytical procedures ( for example , trend analysis).

[Audio] Common areas requiring vouching Travel expenses Purchases and procurement Salary and benefits Capital expenditures Operating expenses.

Cash purchase. xv.L. Cash purchase.

[Audio] Meaning A cash purchase refers to transactions where a buyer pays the full amount due for a product or service in cash immediately or at the point of sale , here are some key aspects of cash purchase.

[Audio] Characteristics No credit or financing involved Payment is made immediately No deferred payment or installment plan’s Buyer pays the full amount due.

[Audio] Types of cash purchase Over– the – counter (O-T-C--) purchases Point –of--sale (P-O-S--) transactions Online purchases using digital payment methods (for example) PayPal In store purchases.

Understanding Cash Transactions: Advantages, Disadvantages, and Risks.

[Audio] Advantages No interest charges or fees No debt or credit obligations Simplified transaction process Immediate ownership.

[Audio] Disadvantages Limited budget flexibility No credit building opportunities Potential cash flow constraints No buyer protection (e.g, return policies).

[Audio] Common cash purchase scenarios Retail transactions Grocery shopping Dining Entertainment Small business transactions.

[Audio] Accounting treatment: Records as a cash out flow Recognised as a purchase expenses May be categorised under “ cash purchases” or “operating expenses”.

[Audio] Cash purchases are straight forward transaction that provide immediate Ownership and avoid debt obligations however they may limit budget flexibility And credit building opportunities.

Purchase return. A purchase return also known as a return Or refunds , occurs when a buyer return goods or services to the seller due to various reasons, such as.

[Audio] Reasons for purchase return: Defective or damaged goods Wrong or incorrect items received Change of mind or buyers remorse Goods no longer needed Quality issue.

[Audio] Key points: When goods are returned, auditor should verify whether it is properly recorded in the purchase returns book or returns outward register Auditor should verify the debit note issued by the client to the supplier or the credit note issued by the supplier He should voucher the quantity returned with the purchase returns book , gatekeeper outward register, storekeepers record and credit notes received from the supplier.

[Audio] Types of purchase returns In – store returns Online returns Mail – in returns Exchange or replacement.

Purchase Return Process Identification of Need for Return Authorization Packaging and Shipping Receiving Credit or Replacement.

[Audio] Purchase return process Buyer notifies seller of intent to return Seller provides return merchandise Authorization (R-M-A--) Buyers returns goods in original condition Seller inspects returned goods Refund or replacement issued.

[Audio] Accounting treatment Recorded as a reduction in sales revenue Recognised as a purchase return expense May be categorised under “ sales return” or “ cost of good sold “.

[Audio] Purchase return benefits Improved customer satisfaction Enhanced reputation Opportunity for up selling or cross selling Reduced waste and disposal costs.

[Audio] Std :: Tybbi Name : Alshifa Idrisi , And Yash Kamble Roll No : 08, 12 College Name : Guru Nanak Khalsa College.

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