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Internal Control and the Voucher System

3. Prepare vouchers.

4. Record vouchers in a voucher register.

5. Record payment of approved vouchers.

6. Record transactions that require special treatment in a voucher system.

Using theVoucher SystemSection Objectives

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.Page

953

What is a voucher register?

QUESTION:

A voucher register is a journal used to record liabilities arising from business transactions.

ANSWER:

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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

PAID ACCTS. FREIGHT

VOU. CK. PAYABLE PURCH. IN

DATE NO. PAYABLE TO DATE NO. CREDIT DEBIT DEBIT

Mar.

1 3-04 Gulf Shores 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

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Voucher Register with Purchases and Freight-In Columns

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

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Voucher Register with Payroll Transactions

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 RegisterCHECK REGISTER

ACCOUNTS PURCHASESCK. 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

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

VoucherNumber 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 Payable

March 31, 20--

Partial payments

Notes payable

Purchases returns and allowances

Purchases discounts lost

Transactions Requiring Special Treatment

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1. Cancel the original voucher.

2. Issue new vouchers for partial payments.

Partial Payment of Previously Recorded Voucher

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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.

Payment of Notes Payable

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Method 1: Issue a new voucher and cancel the original voucher.

Method 2: Make a notation for the allowance.

Recording Purchases Returns and Allowances

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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.

Recording Cash Discounts Lost

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R

E

V

I

E

W

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 ________________.

In a voucher system, the check register replaces the _____________ journal.cash payments

Accounts Payable

voucher register

Complete the following sentences:

R

E

V

I

E

W

Unpaid vouchers should be filed according to ________.

The balance of ________________ should equal the total of the schedule of vouchers payable.

Record purchase invoices _____________ to identify “lost” discounts.

net of discount

Accounts Payable

due date

Complete the following sentences:

Thank Youfor using

College Accounting, Tenth Edition

Price • Haddock • Brock