When the goods are purchased on credit   for resale or to use in production etc., then only purchase voucher is prepared.

Goods means:-

  • The raw material or finished products or semi finished products which have been purchased for resale purpose in same form. or
  • Goods are purchased and sold after doing some processing of the same or
  • Goods are used as raw material in manufacturing the goods for sale.

For cash purchase, cash payment voucher is prepared. Basic source document for purchase voucher is purchase bill or purchase invoice.

While preparing the purchase voucher, the purchase or goods account is debited and supplier’s account is credited with the value of purchase amount. Some time tax on purchases and cost of material is shown separately. In that case debit the purchases and taxes separately with their respectable values and credit the supplier’s account with the full value of invoice.

Point To Be Kept in Mind While Preparation of Purchase Voucher

While preparing the purchase voucher, the accountant must keep the following points in mind:-

  1. Purchase bill must be passed by purchase department or concerned authorities.
  2. Total of amount of purchase bill should be correct.
  3. Date of purchase bill also should be correct because in some countries like India the detail of purchases is submitted to the sales tax department along with the sales tax return. If the date of the purchase bill is not matching the sales tax return period then it can create an objection from sales tax department.
  4. Amount must be written both in figures and words.
  5. Purchase Voucher must be signed by the accountant and the authorized person.

Support Documents Required for Purchase Voucher

Following documents are required for preparation of purchase voucher:-

Illustration for Credit Purchases

Illustration-1 (Simple Entry)

M/s XYZ Limited purchased goods for Rs.31500/= from M/s Mascot Marketing on 31.07.15 vide their Bill No. 1501 Dated 31.07.15. Prepare the necessary voucher in the books of M/s XYZ Limited.

Solution:

First of all, we have to ascertain that the goods are purchased for resale purpose only or it is trading item. If it is purchase of trading items, then we shall prepare Purchase Voucher for the said transaction as under:-

M/S XYZ LIMITED

PURCHASE VOUCHER

Voucher No. 1012                                                                                    Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Purchase Account

31500/=

Total

31500/=

Credit: M/s Mascot Marketing

31500/=

Total

31500/=

Narration: Being goods purchased from M/s Mascot Marketing as per their bill No.1501 dated 31.07.15 enclosed.
Amount in words: Rupees Thirty One Thousand Five Hundred only.
Manager                                              Accountant

Illustration-2  To segregate the purchases in local or central or import purchase):

We take the illustration No. 1 for this purpose.

Solution:

Suppose, M/s Mascot Marketing is situated in Haryana State of India and M/s XYZ Limed is situated in Delhi State of India. In this case this purchase will be treated as central purchase and the voucher shall be prepared as under:-

M/S XYZ LIMITED

PURCHASE VOUCHER

Voucher No. 1012                                                                                    Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Central Purchase Account

31500/=

Total

31500/=

Credit: M/s Mascot Marketing

31500/=

Total

31500/=

Narration: Being goods purchased from M/s Mascot Marketing as per their bill No.1501 dated 31.07.15 enclosed.
Amount in words: Rupees Thirty One Thousand Five Hundred only.
Manager                                              Accountant

Illustration – 3 (To make separate entries for purchase and sales tax and cartage etc.):

M/s XYZ Limited, Green Park, New Delhi, purchased goods from M/s Gift House, Nehru Place, New Delhi as per details given below:-

Bill No. 125, Dated: 31.07.15

Value of Goods – Rs.20000/=

Sales Tax 5% – Rs.1000/=

Cartage Rs.500/=

Total Bill Value Rs.21500/=

Prepare the necessary voucher for the same transaction in the books of XYZ Limited.

Solution:

Now a day, in India, separate detail is kept for all types of purchases and tax amount thereon. Practically also, the purchase voucher should show separate details for net value of goods and sales tax etc. According to above transaction, it is clear that the supplier and purchaser are from same state i.e. Delhi. Therefore this purchase shall be treated as local purchase and the purchase voucher shall be prepared as under:-

M/S XYZ LIMITED

PURCHASE VOUCHER

Voucher No. 1015                                                                                    Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Local Purchase Account

20000/=

Debit: Local Sales Tax Account

1000/=

Debit: Cartage Inward Expenses Account

500/=

Total

21500/=

Credit: M/s Gift House

21500/=

Total

21500/=

Narration: Being goods purchased from M/s Gift House as per their bill No.125 dated 31.07.15 enclosed.
Amount in words: Rupees Twenty One Thousand Five Hundred only)
Manager                                              Accountant

Note: The voucher for illustration No. 3, also can be prepared in more clearly as below:

M/S XYZ LIMITED

PURCHASE VOUCHER

Voucher No. 1015                                                                                   Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Local Purchase 5% Taxable Account

20000/=

Debit: Local Sales Tax   5% Account

1000/=

Debit: Cartage Inward Expenses Account

500/=

Total

21500/=

Credit: M/s Gift House

21500/=

Total

21500/=

Narration: Being goods purchased from M/s Gift House as per their bill No.125 dated 31.07.15 enclosed.
Amount in words: Rupees Twenty One Thousand Five Hundred only)
Manager                                              Accountant

Basically, it is the systematic way to prepare the purchase voucher because it gives the clear picture of each and every detail to be kept for sales tax purpose. To show the percentage, is necessary to keep the separate details for each type of purchases since there may be different rates of taxes.

Illustration for Cash Purchase

Basically, Cash Payment Vouchers are prepared for all cash purchases.  But to keep the details of all purchases including cash purchases, purchase voucher also can be prepared. Though, cash purchase is shown in cash book but it can be shown in purchase book also.

Only the care is to be taken while posting the cash purchases,  is that the ledger folio in cash book shall be the folio number of purchase book and in purchase book the ledger folio will be the page number of cash book. For example: Cash purchase on 31.07.15 for Rs.5000/= is shown on page number C-125 in payment side of cash book and same purchase also is shown on page number P-8 in purchase book. While doing the ledger posting, the ledger folio in cash book shall be shown P-8 and in purchase book, C-125 shall be shown. Please note that for control purpose, all type of purchases should be entered at one place also.

Illustration:

Goods purchased by M/s XYZ Limited – Delhi, in cash from M/s Morning Place – Delhi as per details given below:-

Cash Memo No. 235 dated 31.07.15

Value of goods Rs.2000/=

Local Sales Tax %  100/=

Cartage Rs.50/=

Total bill value Rs.2150/=

Prepare the necessary voucher in the books of M/s XYZ Limited.

Solution:

Purchase Voucher for cash purchase shall be prepared as follows:-

M/S XYZ LIMITED

PURCHASE VOUCHER

Voucher No. 1019                                                                                   Date: 31.07.15

PARTICULARS

AMOUNT IN Rs.

Debit:  Local Purchase 5% Taxable Account

2000/=

Debit: Local Sales Tax  5% Account

100/=

Debit: Cartage Inward Expenses Account

50/=

Total

2150/=

Credit: Cash Account

2150/=

Total

2150/=

Narration: Being goods purchased from M/s Morning Place in Cash as per their bill No.235 dated 31.07.15 enclosed.
Amount in words: Rupees Two Thousand One Hundred Fifty only)
Manager                                              Accountant

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