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GLENCOE / McGraw-Hill

GLENCOE / McGraw-Hill. Internal Control and the Voucher System. Using the Voucher System. Section Objectives. Prepare vouchers. Record vouchers in a voucher register. Record payment of approved vouchers. Record transactions that require special treatment in a voucher system.

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GLENCOE / McGraw-Hill

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  1. GLENCOE / McGraw-Hill

  2. Internal Control and the Voucher System

  3. Using the Voucher System Section Objectives • Prepare vouchers. • Record vouchers in a voucher register. • Record payment of approved vouchers. • Record transactions that require special treatment in a voucher system.

  4. Verify receipt of merchandise. Verify prices. Verify computations. Prepare and approve voucher. Record and file the unpaid voucher according to due date. Pay the voucher. File the paid voucher. Page 953 Steps in the Voucher System

  5. QUESTION: What is a voucher register? ANSWER: A voucher register is a journal used to record liabilities arising from business transactions. Page 955

  6. Each voucher entered is a credit to Accounts Payable. All entries in the Other Accounts section are posted individually. Page 955 A voucher register is a customized journal providing for accounts used frequently.

  7. VOUCHER REGISTER PAID ACCTS. FREIGHT VOU. CK. PAYABLE PURCH. IN DATE NO. PAYABLE TO DATE NO. CREDIT DEBIT DEBIT Mar. 1 3-04 GulfShores Clothiers 3/10 304 782.10 782.10 10 3-10 Southern Express 3/12 305 65.00 65.00 10 3-11 Cotton Inc. 3/19 311 4,675.00 4,675.00 10 3-12 Eastern Truckers 3/13 306 75.00 75.00 Page 956 Voucher Register with Purchases and Freight-In Columns

  8. VOUCHER REGISTER PAID ACCTS. SOC. SEC. MEDICARE EMP. INC. VOU. CK. PAYABLE TAX PAY. TAX PAY. TAX. PAY. DATE NO. PAYABLE TO DATE NO. CREDIT CREDIT CREDIT CREDIT Mar. 12 3-14 Nadia Khan 3/15 307 576.45 43.40 10.15 70.00 15 3-15 Beth Spencer 3/15 308 658.80 49.60 11.60 80.00 15 3-16 Robert Ramirez 3/15 309 648.80 49.60 11.60 90.00 Page 956 Voucher Register with Payroll Transactions

  9. Record entry in the check register, debiting Accounts Payable and crediting Cash. Make notation in the voucher register showing date paid and check number. Page 956 Issuing Checks for Vouchers In a voucher system, the check register replaces the cash payments journal.

  10. CHECK REGISTER ACCOUNTS PURCHASES CK. VOU. PAYABLE DISCOUNTS CASH DATE NO. PAYABLE TO NO. DEBIT CREDIT CREDIT 20-- Mar. 1 301 Business Rentals 3-01 1,000.00 1,000.00 1 302 Beth Spencer 3-02 100.00 100.00 1 303 Nadia Khan 3-03 125.00 125.00 10 304 Gulf Shores Clothiers 3-04 782.10 15.64 766.46 29 315 Mike Youngblood 3-27 1,000.00 1,000.00 29 316 Sumay Chen 3-28 950.00 950.00 30 317 Nadia Khan 3-29 65.00 65.00 18,105.20 123.45 17,981.75 Page 958 Check Register

  11. At the end of the month, a list of all unpaid vouchers is prepared. Compare the list to the entries in the voucher register. Ensure that the total of the schedule equals the balance of Accounts Payable. Page 958 Schedule of Vouchers Payable

  12. Voucher Number Payable to Amount 2-29 Cotton Inc. $3,000.00 3-05 Southern Paper Company 225.00 3-06 P&S Office Products 75.00 3-07 Henry Villas, Attorney 500.00 3-08 PHB, CPAs 250.00 3-13 Little Insurance Company 500.00 3-17 Paper Box Company 195.00 3-18 Eastside Utilities 35.00 3-19 Southern Gas 155.00 3-20 Gulf Shores Clothiers 3,300.00 3-21 Public Telephone Company 125.00 3-22 Truth Publishing Company 450.00 3-23 On-Time Delivery 179.00 Total $8,989.00 CLOTHING CORPORATIONSchedule of Vouchers PayableMarch 31, 20-- Page 958 Schedule of Vouchers Payable

  13. Page 959 Transactions Requiring Special Treatment • Partial payments • Notes payable • Purchases returns and allowances • Purchases discounts lost

  14. Page 960 Partial Payment of Previously Recorded Voucher Cancel the original voucher. Issue new vouchers for partial payments.

  15. Page 960 Payment of Notes Payable • If a business issues a note payable for an unpaid invoice, debit Accounts Payable and credit Notes Payable—Trade. • In the voucher register, enter the date of the note and enter the words “By note” in the Check Number column.

  16. Page 961 Recording Purchases Returns and Allowances Method 1: Issue a new voucher and cancel the original voucher. Method 2: Make a notation for the allowance.

  17. Page 961 Recording Cash Discounts Lost Record purchase invoices in the voucher register net of discount. If an invoice is paid after the discount period, the difference is recorded in the check register by debiting Discounts Lost.

  18. R E V I E W Complete the following sentences: voucher register A ______________ is a journal used to record liabilities arising from business transactions. Because vouchers are used to record business liabilities, most vouchers are credited to ________________. Accounts Payable In a voucher system, the check register replaces the _____________ journal. cash payments

  19. R E V I E W Complete the following sentences: Unpaid vouchers should be filed according to ________. due date Accounts Payable The balance of ________________ should equal the total of the schedule of vouchers payable. net of discount Record purchase invoices _____________ to identify “lost” discounts.

  20. Thank You for using College Accounting, Tenth Edition Price • Haddock • Brock

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