1. Account means a systematic accounting summary which shows the transactions of specific period for goods, assets, persons, incomes and expenses. In the account, any one effect of transaction – debit or credit-is passed. Moreover to find the difference between the totals of both the sides, which is also known as balance of that account, is also included.
Illustration: In each transaction minimum two accounts are effected, e.g., Goods of ₹ 9,000 sold to Manas for cash. Here two accounts are effected : (1) Cash account and (2) Goods (Sales) account.
In short, to distinguish some specific class of transactions from other transactions of business, a systematic summary of the same is prepared which is known as an account.
2. A documentary or written evidence of the transactions of the business is known as voucher. Since such evidence is in the written form, it could be preserved for a very long time. Moreover, it could be produced as a proof at a future date, when required. Bill or invoice (cash memo) for cash purchase, bill (credit memo) for credit purchase, credit note, debit note, counter foil of cheque, pay-in slip for cash deposited in the bank, receipt issued or received, etc. are the examples of the voucher.
Business transactions are recorded in books of account on the strength of such vouchers only. Vouchers also help to ensure that an accounting entry passed is true and correct, e.g., Invoice issued by a seller is the basis of accounting entry for recording purchase in Purchase Book. Similarly, office copy of the sales invoice is the basis for recording sales.
