Question

Does vouching from the Sales Journal to billing invoices provide evidence that revenue was earned? Explain...

Does vouching from the Sales Journal to billing invoices provide evidence that revenue was earned? Explain why or why not.

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Answer #1

Yes, vouching from the Sales Journal to billing invoices definitely provides evidence that revenue was earned as the vouching is referred as the process of comparing in entries recorded in the books of account with the relevant and supporting documentary evidence.  Billing invoice issued when the sales has been made stating quantity and selling price. When this invoice is compared with entries recorded in sales journal, which includes entries related to credit sales, and both presents the same data, it ensures that revenue has been earned by the firm.

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