© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater The Voucher System Chapter 23
Learning Objective 1 Preparing vouchers, recording them in a voucher register, and recording payment of vouchers in a check register © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1
Voucher Written authorization form that is used for every cash payment the company makes Contains details of transaction Includes signatures of appropriate employees as authorization © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1
Voucher System Internal control principles: ◦ Separation of duties - no one person in control of all transactions or everything involved with one transaction ◦ No purchases made without approval - voucher with documentation ◦ Pre-numbered documents - allows cross- referencing and cross-checking © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-1
Learning Objective 2 Recording revised vouchers to handle non-routine transactions in a voucher system © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2
Voucher System Vouchers Voucher register Unpaid voucher file Check register Paid voucher file © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2
Voucher System © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2
Voucher © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Voucher Register Unpaid Voucher File LO-2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Voucher Register Unpaid Voucher File LO-2
Unpaid Voucher File After a voucher is recorded in voucher register, it is filed in the unpaid voucher file (tickler file) Accounts payable is not used Unpaid file serves as subsidiary ledger for controlling account vouchers payable © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2
Check Register © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-2 Replaces cash payments journal in recording payment of vouchers payable Posting of the check register follows same rules as other special journals Once a voucher is paid, it should be marked to avoid duplicate payments 2,600
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Problem 23B-4 LO-1,2
Learning Objective 3 Using the net amount method to record invoices and payment © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3
Recording Purchases at Net Amount © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3 Many companies record purchases at net. When a discount is missed, an account called Purchases Discounts Lost is used. ◦ Debit balance
Recording Purchases at Net Amount © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3 If a company made a payment of $2,000 on June 28, and missed a 2% discount, the following journal entry would occur using the net method. Jun28Vouchers Payable1,960 Discounts Lost 40 Cash2,000 $2,000 x.02 = $40
Comparison – Exercise 23-5 Purchase Inventory – Gross Method Purchase Inventory – Net Method © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3
Comparison – Exercise 23-5 Paid after discount period – Gross Method Paid after discount period – Net Method © 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3
© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater End of Chapter 23