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Types of Vouchers

There are two types of vouchers a) Cash Voucher b) Non Cash Voucher

Cash Vouchers: Cash vouchers are prepared for cash transactions only, when cash is received or
paid. There are two types of cash vouchers: a) Debit Vouchers b) Credit Vouchers

Debit Vouchers: Debit vouchers are prepared only for cash payments

Credit Vouchers : Credit vouchers are the opposite side of debit vouchers, Credit vouchers are
prepared when we receive cash

Preparation of accounting vouchers: All business transactions recorded in the books of
accounts can be compared with the source documents. Accounts are debited or credited on the
basis of these source documents. After deciding, that what to be debited or credited, the next step
is the preparation of the vouchers.

Meaning of Accounting Equation

The Accounting Equation' is based on the double-entry book keeping system. For every debit
there must be a credit. The accounting equation states that the sum of the Total assets must be

equal to the sum of the liabilities.

Assets = Liabilities + Capital
Or
Capital = Assets - Liabilities
Or
Liabilities = Assets - Capital
Or
Assets = Total Liabilities or Total Equity
Or
Total Assets = Internal Liabilities + External Liabilities