college accounting

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GLENCOE / McGraw-Hill
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Internal Control and the Voucher System
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Using the Voucher System
Section Objectives

1. Prepare vouchers.
2. Record vouchers in a voucher register.
3. Record payment of approved vouchers.
4. Record transactions that require special
   treatment in a voucher system.

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Steps in the Voucher System

1. Verify receipt of merchandise.
2. Verify prices.
3. Verify computations.
4. Prepare and approve voucher.
5. Record and file the unpaid voucher according to
   due date.
6. Pay the voucher.
7. File the paid voucher.

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A voucher register is a customized journal
providing for accounts used frequently.

• Each voucher entered is a credit to Accounts
  Payable.
• All entries in the Other Accounts section are
  posted individually.

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Voucher Register with Purchases and Freight-In
Columns
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Voucher Register with Payroll Transactions
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Issuing Checks for Vouchers

• Record entry in the check register, debiting
  Accounts Payable and crediting Cash.
• Make notation in the voucher register showing
  date paid and check number.

In a voucher system, the check register replaces
the cash payments journal.
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Check Register
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Schedule of Vouchers Payable

• 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.

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Schedule of Vouchers Payable
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Transactions Requiring Special Treatment

• Partial payments
• Notes payable
• Purchases returns and allowances
• Purchases discounts lost

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Partial Payment of Previously Recorded Voucher

1. Cancel the original voucher.
2. Issue new vouchers for partial payments.

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Payment of Notes Payable

• If a business issues a note payable for an unpaid
  invoice, debit Accounts Payable and credit Notes
  PayableTrade.
• In the voucher register, enter the date of the
  note and enter the words By note in the Check
  Number column.

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Recording Purchases Returns and Allowances
Method 1 Issue a new voucher and cancel the
original voucher. Method 2 Make a notation
for the allowance.
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Recording Cash Discounts Lost

1. Record purchase invoices in the voucher register
   net of discount.
2. If an invoice is paid after the discount period,
   the difference is recorded in the check register
   by debiting Discounts Lost.

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