Transcript The Voucher System

The Voucher System
Chapter 24
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Characteristics of a Voucher System
Separation of duties is built into a voucher
system.
 Authorization of transactions is separated
from recording and execution of these
activities.
 No purchases are made without an approved
voucher.

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Characteristics of a Voucher System
All vouchers are supported by documents
and records.
 Cross-referencing and cross-checking is
part of the voucher system.
 Transactions are traced throughout the
system.

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Learning Objective 1
Preparing vouchers, recording
them in a voucher register,
and recording payment of
vouchers in a check register.
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Learning Unit 24-1

1
2
3
4
5
What are the elements of voucher system?
Vouchers
Voucher register
Unpaid voucher file
Check register
Paid voucher file
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Learning Unit 24-1
Jones Supply Co.
Purchase Order# 0732
Date: November 3, 20x8
Ordered from Beam Co.
Date Needed
Ship via
F.O.B.
Terms
Nov. 28, 20x8
Rail
Destination 2/10, n/30
Quantity
Unit
Ordered Received Description
Price
Amount
100
V3421
Staplers
$ 5.00
$ 500
200
V3918
Calculators
20.00
4,000
Total
$4,500
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Learning Unit 24-1
Beam Co. (Salesman, Munroe) Invoice Number: B20
Sold to: Jones Supply Co.
Date: November 3, 20x8
Your Purchase
Shipped via: F.O.B.
Terms
Order #: 0732
Rail
Destination 2/10, n/30
Quantity
Unit
Ordered Received Description
Price
Amount
100
V3421
Staplers
$ 5.00
$ 500
200
V3918
Calculators
20.00
4,000
Total
$4,500
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Learning Unit 24-1
Jones Supply Co.
Invoice Number: B20
November 28, 20x8
Purchase Order #: 0732
Voucher No. 23
Check needed: Dec. 5, 20x8
Payable to: Beam Co.
Invoice amount $4,500
Less discount
10
Net Amount Due $4,410
Verification Steps:
Date
(1) Invoice compared with purchase order
12/1/x8
(2) Invoice compared with receiving report
12/1/x8
(3) Extension and footing done
12/1/x8
(4) Approved for payment
12/3/x8
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Learning Unit 24-1
All vouchers are pre-numbered.
 Any voided vouchers must be kept on file.
 The invoice for a transaction is compared to
the related purchase order, receiving report,
and other supporting documentation.
 The voucher is prepared when all
information is cross-referenced.

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Learning Unit 24-1
The voucher register is a special journal that
replaces the purchases journal.
 A voucher is entered into the register on the
date the related liability is incurred.
 A check number is entered on the date of
payment.

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Learning Unit 24-1
Column totals for Vouchers Payable,
Purchases, Supplies, etc. are posted at the
end of the month.
 Individual amounts are posted to the
subsidiary ledgers daily.

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Learning Unit 24-1
Each voucher is recorded in the voucher
register at the time a liability is incurred.
 It is then placed into a file in the order of
the due date. Filing by due date is important
in order to avoid any late payments.
 The voucher remains in this file until it is
paid.

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Learning Unit 24-1
The check register replaces the cash
payments journal.
 The check register for a voucher system has
many columns. The columns in this special
register have account and number headings
linked to the voucher register.
 The paid vouchers are filed in sequential
order of voucher numbers.

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Learning Objective 2
Recording revised vouchers to
handle nonroutine transactions
in a voucher system.
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Learning Unit 24-2
How do some companies record the
following additional transactions?
1 Purchase returns and allowances after the
voucher has been recorded.
2 Partial payment plans that adjust the
voucher prepared for full payment.
 Cancel the old voucher and prepare a new
one with the correct amount.

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Learning Objective 3
Using the net amount method to
record invoices and payment.
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Learning Unit 24-2
How do some companies record purchases
at net amount?
 Vouchers are recorded at net amount.
 The applicable discount is subtracted first.
 A Purchases Discount Lost account is used
to record missed discounts related to late
payments.

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Learning Unit 24-2

Mill Company buys merchandise on
account for $8,000, 2/10, n/30.
Gross method
Purchases
8,000
Vouchers Payable
8,000
Net method
Purchases
7,840
Vouchers Payable
7,840
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Learning Unit 24-2

What if the discount is taken on time?
Gross method
Vouchers Payable
8,000
Purchases Discount
Cash
160
7,840
Net method
Vouchers Payable
7,840
Cash
7,840
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Learning Unit 24-2

What if the discount is missed?
Gross method
Vouchers Payable
8,000
Cash
8,000
Net method
Vouchers Payable
7,840
Discount Lost
160
Cash
8,000
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End of Chapter 24
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