Cash voucher

From CEOpedia | Management online

Cash voucher is a basic type of form used as a tool to document a petty cash payment or other cash payments. For example, if somebody wants to take the money out of the petty cash fund, should fill out the form of cash vouchers to inform what is the reason for the withdrawal due to receive a cash in exchange.

If the person submits a formal request of cash and is doing it because wants to refund of the expenses which have already paid from their own funds, then this person should also include the appropriate receipt from the original purchase transaction in the application for a cash voucher. These vouchers are then saved as accounting entries.

Cash voucher typical usage

Cash vouchers are popular in many countries and are used for a variety of purposes. They are commonly used as a form of payment or as a promotional tool by businesses. Some examples of where cash vouchers are popular include:

  • Retail stores: Many retail stores offer cash vouchers as a form of payment or as part of a loyalty program.
  • Restaurants: Many restaurants offer cash vouchers that can be used for meals or drinks.
  • Service providers: Service providers such as salons, spas, and gyms often offer cash vouchers as a way to attract new customers or to promote special offers.
  • Online merchants: Online merchants often use cash vouchers as a way to encourage customers to make purchases on their websites.
  • Tourist destinations: Tourist destinations such as theme parks, museums, and zoos often offer cash vouchers as a way to encourage visitors to purchase tickets or packages.
  • Government schemes: Some government schemes also offer cash vouchers as a way to provide financial assistance to low-income families or to support specific industries or sectors.

Cash vouchers can be a useful way for businesses to attract customers and increase sales, and for customers to save money on purchases. They are also popular as a way to reward employees, or as a gift option.

How to use cash voucher?

To use a cash voucher, you can follow these steps:

  1. Check the expiration date: Make sure the voucher is still valid and has not expired.
  2. Read the terms and conditions: Review any restrictions or rules that apply to the use of the voucher.
  3. Locate a participating business: Find a business that accepts the voucher as payment or has a promotional offer that can be redeemed using the voucher.
  4. Present the voucher: When making a purchase, present the voucher to the cashier or salesperson at the business. They will typically need to verify the value and expiration date, and possibly the serial number, before accepting it.
  5. Use the voucher's value: The value of the voucher will be applied to your purchase. If the purchase exceeds the value of the voucher, you may need to pay the difference with cash, credit, or debit. If the purchase is less than the value of the voucher, the difference will not be returned to you.
  6. Keep the receipt: Retain the receipt for any record keeping purpose.

Please note that these are general steps and the process of using a cash voucher may vary depending on the issuer's rules and the business's policies.

The elements of the cash voucher form

The official form of cash voucher shall contain the space for the date, the number of the forms which ensure that all of the documents have been accounted legally, the amount of the cash which voucher provides as well as the details of the transaction. Moreover, the cash voucher should have the legal name of the cash recipient and the account to which the expenditure should be charged. At the bottom of this form should be a place for the signature of the recipient as well as the person who approved this action.

A cash voucher typically includes the following elements:

  • Date: The date the voucher was issued or can be used.
  • Value: The monetary value of the voucher.
  • Serial Number: A unique identification number for the voucher.
  • Expiration Date: The date after which the voucher can no longer be used.
  • Terms and Conditions: Any restrictions or rules that apply to the use of the voucher.
  • Signature: The signature of the issuer of the voucher or the person authorized to redeem it.
  • Business Information: The name and contact information of the business that is accepting the voucher.
  • Redeem by: The date by which the voucher must be used.

It is not necessary that all of these elements are present in a cash voucher form, as it might vary on the issuer's discretion.

The petty cash

The term petty cash is used according to the small amount of cash that can be used for paying, rather than use the traditional writing of the check. The petty cash is mainly used in relation to the expenses to which the application of the check is unreasonable. The word petty can be also used in reference to the petty cash fund, which is a particular amount of money the person owns. This kind of document provides information which shows the amount of money, which were spent and illustrate the reason for those transactions[1].

It is typically used for small purchases that are not significant enough to justify writing a check or using a credit card. Examples of expenses that may be covered by petty cash include office supplies, postage, and small equipment repairs.

The petty cash system typically includes:

  • A petty cash fund: This is the actual cash that is kept on hand for small expenses.
  • A petty cash log or journal: This is a record of all transactions made using the petty cash fund, including the date, amount, and purpose of each expenditure.
  • A petty cash custodian: This is the person responsible for managing the petty cash fund and maintaining the petty cash log or journal.
  • Reimbursement: When the petty cash fund runs low, the custodian will request for reimbursement to cover the expenses.
  • Auditing: The petty cash records are periodically audited by the accountant or the auditor to check for any discrepancies or fraud.

Petty cash can be a useful way for businesses to manage small expenses, but it is important to keep accurate records and to have proper controls in place to prevent misuse of the funds.

The other view of the cash voucher

The cash voucher may be also associated with the vouchers providing a fixed amount of money to spend on products such as food, furniture, services and many other types of goods. Moreover, in some cases, shops did not want to return money for the purchase and they deal with the problem by giving the cash voucher in the amount of money which were earlier spent by the customers on the goods.

There are two main types of vouchers:

  • the cash voucher - this type of voucher has a fix cash value,
  • the commodity voucher - this type of voucher has a fix commodity value[2]

Therefore, the cash voucher can be decided in the two types such as:

  • credit voucher - represents the voucher which is prepared during the time when the cash is collected, which means that cash can be revoked when:
    • goods are sold,
    • the sale of investment or assets occurs.
  • debit voucher - represent the voucher which is prepared when the payment is made, which means that it can be made during the:
    • payment made to the creditors,
    • for the account of expenses,
    • purchases


Cash voucher — recommended articles
Cheque requisition — Debit Note — Recordkeeping system — Cash Transaction — Purchases journal — Accounting documents — Positive pay — Dishonoured cheque — Purchase invoice

References

Footnotes

  1. ↑ Bisetty K.,Fourie N., Gunther S.,Richards M.,Smith A.(2009).pp.12-16
  2. ↑ Creti P. and Jaspare S.(2006).pp.27

Author: Magdalena Czajka

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