The objects of vouching the payment side of the cash book are to ensure that the payments were properly authorized ascertain that they were entered under their appropriate head of account in the cash book see that payments relate to the business and are a proper business charge, determine that the payments stated to have been made are supported by the required documentary evidence and determine the closing cash and bank balances correctly.
The following points should be carefully considered while examining the evidence of payments:
• That the name of client is stated as the payer.
• That the date in the payee's acknowledgement agrees with the corresponding entry in the cash book.
• That the payee's name is correctly stated in the cash book.
• The amount of the payment together with the head of account debited is correctly entered in the cash book.
• The allocation in respect of the head of account is correctly done.
• The payment is duly authorized and is properly chargeable as business expenditures
Payments to the Creditors: An enquiry should be made to ensure that invoices have been internally acknowledgments should be checked. Statements of account of the creditors should be scrutinized. As far as possible payments must be made through crosses cheques. It should be noted that the name of the payee is correctly recorded in the cash book so that could later be treated in the sundry creditor's ledger o the account of the particular creditor to whim payment has been made.
The following points should be carefully considered while examining the evidence of payments:
• That the name of client is stated as the payer.
• That the date in the payee's acknowledgement agrees with the corresponding entry in the cash book.
• That the payee's name is correctly stated in the cash book.
• The amount of the payment together with the head of account debited is correctly entered in the cash book.
• The allocation in respect of the head of account is correctly done.
• The payment is duly authorized and is properly chargeable as business expenditures
Payments to the Creditors: An enquiry should be made to ensure that invoices have been internally acknowledgments should be checked. Statements of account of the creditors should be scrutinized. As far as possible payments must be made through crosses cheques. It should be noted that the name of the payee is correctly recorded in the cash book so that could later be treated in the sundry creditor's ledger o the account of the particular creditor to whim payment has been made.