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Which of the following is NOT required while vouching Cash sales ?

Which of the following is NOT required while vouching Cash sales ? Correct Answer Examine credit sales and Debtor ledger

Examine credit sales and Debtor ledger is NOT required while vouching for Cash sales.

Key Points

  • Vouching, widely recognized as “the backbone of auditing,” is a component of an audit seeking to authenticate the transactions recorded in a firm’s book of accounts.
  • When an accounting transaction is vouched, it is tested and verified by presenting relevant documentary evidence.
  • While vouching for the cash sales only those documents/vouchers are to be examined/investigated which affect the inward and outward of cash due to sales.
  • So, as per the above question option no., 1 i.e. Examination of credit sales and Debtor ledger is not required while vouching for the cash sales.

Related Questions

"BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is"
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