Question

How are cash disbursement vouchers used as a form of internal control?

How are cash disbursement vouchers used as a form of internal control?

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Answer #1

The cash disbursement vouchers are used as a form of internal control because it documents the amount of cash payable/paid alongwith the authorization, supporting like purchase bill or expense slip and the limit towards the payments. The voucher carries the kind of payment, whether it is a cash payment or the check payment. After the disbursement of the cash, it is the vouchers which can only be assessed to discover the details of the payment and receipt of the cash outflow. The filing of the vouchers is chronological manner in the file will help finding the details of any payment/disbursement and makes the internal control in the organisation.

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