Chapter 23
The Voucher System
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
Learning Objective 1
Preparing vouchers, recording them in a
voucher register, and recording payment
of vouchers in a check register
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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

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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 crossreferencing and cross-checking
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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
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-2
Voucher System
Vouchers
 Voucher register
 Unpaid voucher file
 Check register
 Paid voucher file

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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-2
Voucher System
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-2
Voucher
Account Distributory
Debit:
Purchases
VOUCHER
Kingston Furniture
Clearview Mall
St. Michaels, SC
Invoice
Number & Date:
94830 Nov 25, 2005
Purchase:
Order Number: PO1002
Voucher No. 56
Date check needed: 12/3/05
Payable to: Hills Brothers
2 S. Charles Street
Baltimore, MD
Date check needed:
3-Dec-05
Payable to: Hills Brothers
2 S. Charles Street
Baltimore, MD
Invoice Amount
Less: Discount
Net Amount Due
Voucher No. 56
Amount
$2,600
$
2,600
(52)
2,548
$
Summary of Voucher
Invoice Amount $ $2,600
2,600
Less: Discount
(52)(52)
Net Amount Due $
2,548
Payment Summary of Voucher
Verification Steps:
(1) Invoice compared with purchase
requisition and purchase order
(2) Invoice compared with receiving
report
(3) Invoice compared with receiving
report
(4) Approved for payment
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Practical Approach, 11e by Slater
Approved by:
Date:
Date 12/3/05
Amount; $2,548
Check no. 522
ME
11/25/2005
LC
11/25/2005
WS
LLJ
12/2/2005
Cash Vouchers
Recorded in Voucher
Payable for Total
$ 2,548
Register by:
ET
Distribution approved by: ______ME________
11/25/2005
Accounting Department)
LO-2
Voucher Register
Unpaid
Voucher File
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-2
Voucher Register
Unpaid
Voucher File
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Practical Approach, 11e by Slater
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

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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-2
Check Register



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
Check Register
Bank
Date
2005
3-Dec
Check #
522
Vouchers Purchases
Payable Discount
Payable to Voucher #
Dr.
Cr
Hills Bros
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Practical Approach, 11e by Slater
56
2,600
2,548
52
Cash in
Bank
Cr
Deposits
2,548
LO-2
Bal.
8,562
6,014
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Problem 23B-4
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-1,2
Learning Objective 3
Using the net amount method to record
invoices and payment
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Practical Approach, 11e by Slater
LO-3
Recording Purchases at Net Amount
Many companies record purchases at net.
 When a discount is missed, an account
called Purchases Discounts Lost is used.

◦ Debit balance
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Publishing, College Accounting: A
Practical Approach, 11e by Slater
LO-3
Recording Purchases at Net Amount
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.
$2,000 x .02 = $40
Jun
28
Vouchers Payable
Discounts Lost
Cash
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Practical Approach, 11e by Slater
1,960
40
2,000
LO-3
Comparison – Exercise 23-5
Purchase Inventory – Gross Method
Purchase Inventory – Net Method
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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
End of Chapter 23
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Publishing, College Accounting: A
Practical Approach, 11e by Slater