the voucher system

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24 - The Voucher System Chapter 24

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The Voucher System. Chapter 24. 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. - PowerPoint PPT Presentation

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Page 1: The Voucher System

24 - 1

The Voucher System

Chapter 24

Page 2: The Voucher System

24 - 2

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.

Page 3: The Voucher System

24 - 3

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.

Page 4: The Voucher System

24 - 4

Preparing vouchers, recordingthem in a voucher register,and recording payment of

vouchers in a check register.

Learning Objective 1

Page 5: The Voucher System

24 - 5

Learning Unit 24-1

What are the elements of voucher system?1 Vouchers2 Voucher register3 Unpaid voucher file4 Check register5 Paid voucher file

Page 6: The Voucher System

24 - 6

Jones Supply Co. Purchase Order# 0732Date: November 3, 20x8 Ordered from Beam Co.Date Needed Ship via F.O.B. TermsNov. 28, 20x8 Rail Destination 2/10, n/30 Quantity UnitOrdered Received Description Price Amount 100 V3421

Staplers $ 5.00 $ 500 200 V3918

Calculators 20.00 4,000Total $4,500

Learning Unit 24-1

Page 7: The Voucher System

24 - 7

Beam Co. (Salesman, Munroe) Invoice Number: B20Sold to: Jones Supply Co. Date: November 3, 20x8Your Purchase Shipped via: F.O.B. TermsOrder #: 0732 Rail Destination 2/10, n/30 Quantity UnitOrdered Received Description Price Amount 100 V3421

Staplers $ 5.00 $ 500 200 V3918

Calculators 20.00 4,000Total $4,500

Learning Unit 24-1

Page 8: The Voucher System

24 - 8

Learning Unit 24-1

Jones Supply Co. Voucher No. 23Invoice Number: B20 Check needed: Dec. 5, 20x8November 28, 20x8 Payable to: Beam Co.Purchase Order #: 0732 Invoice amount $4,500

Less discount 10Net 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

Page 9: The Voucher System

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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.

Page 10: The Voucher System

24 - 10

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.

Page 11: The Voucher System

24 - 11

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.

Page 12: The Voucher System

24 - 12

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.

Page 13: The Voucher System

24 - 13

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.

Page 14: The Voucher System

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Recording revised vouchers tohandle nonroutine transactions

in a voucher system.

Learning Objective 2

Page 15: The 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.

Page 16: The Voucher System

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Using the net amount method torecord invoices and payment.

Learning Objective 3

Page 17: The Voucher System

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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.

Page 18: The Voucher System

24 - 18

Learning Unit 24-2

Mill Company buys merchandise on account for $8,000, 2/10, n/30.

Gross methodPurchases 8,000

Vouchers Payable 8,000

Net methodPurchases 7,840

Vouchers Payable 7,840

Page 19: The Voucher System

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Learning Unit 24-2

What if the discount is taken on time?

Gross methodVouchers Payable 8,000

Purchases Discount 160Cash 7,840

Net methodVouchers Payable 7,840

Cash 7,840

Page 20: The Voucher System

24 - 20

Learning Unit 24-2

What if the discount is missed?

Net methodVouchers Payable 7,840

Discount Lost 160Cash 8,000

Gross methodVouchers Payable 8,000

Cash 8,000

Page 21: The Voucher System

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End of Chapter 24