Advanced Accounting
Chapter 5: A Voucher System
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An accounting system includes procedures for recording and reporting
accurate and up-to-date financial info
Should also include procedures to assist management in controlling daily
operations
Cash is the asset most likely to be misused because its ownership is easily
transferred
Ways to control cash: store in a safe place, make deposits regularly,
approve all cash payments
Voucher: a business form used to show an authorized person’s approval
for a cash payment
Voucher system: a set of procedures for controlling cash payments by
preparing and approving vouchers before payments are made
In a voucher system, NO check can be issued without a properly
authorized voucher
Section 1: Vouchers and Voucher Registers
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When receive an invoice, a verification form is stamped on the invoice –
this verification form is then filled in as the steps are completed
Each person doing a part of the work places a check mark next to the
item verified and initials the verification form to show responsibility for
that part
After an invoice is checked for accuracy, a voucher is prepared for each
invoice received from a vendor
When a voucher system is used, the source document for an approved
cash payment is the voucher
Instead of Accounts Payable use Vouchers Payable.
Also do not use an Accounts Payable ledger instead use an unpaid
vouchers file
In a voucher system, Vouchers Payable is used to record ALL amounts to
be paid by check not just amounts of items bought on account
The normal balance is on the credit side of Vouchers Payable
Unpaid vouchers file shows all amounts owed and to whom they are owed
A form is printed on the outside of a voucher to summarize the contents
and provide space for approving payments
After the invoice is summarized on the voucher, the voucher is folded so
that related documents can be placed inside – sometimes called a voucher
packet
Prenumbered vouchers serve as an additional control within the voucher
system
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Five areas to record info:
1.
2.
3.
4.
5.
Payee Info
Accounts affected info
Voucher approval
Info about where voucher is recorded
Payment info
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Sections 1-3 are completed at the time the voucher is prepared
Section 1 – Payee Information
o Use verified invoice to enter info, discount due date is calculated
using the date the invoice is dated.
o Most checks received within 2 days so payment date is 2 days
before the discount due date.
o After section 1 completed the voucher number is recorded on the
invoice’s verification stamp
Section 2 – Accounts Affected:
o Section 2 lists preprinted account titles for accounts most often
affected by cash payments
o Only the amount of the invoice needs to be entered in Section 2
o Total debits and credits must be calculated and entered
Section 3 – Voucher Approval
o As a double check, certain people are authorized to approve
vouchers before they are journalized
o Approve it be signing name in this section
After a voucher has been approved, it is recorded in the voucher register
– similar to and replaced the Purchases journal
A missing voucher number shows that a voucher has not been recorded
Voucher registers have special columns: Vouchers Payable –credit,
Purchases – debit, Supplies debits for the different types of supplies,
everything else is recorded in the general columns with the name of the
account listed
Section 4 – When the Voucher is Recorded
o Person who record the voucher in the register also does this
section
o Person indicates what page the info is recorded in the voucher
register
o Person also initials the space on the voucher
After voucher journalized and noted in section 4, the voucher is filed in
the unpaid vouchers file.
Placed in file in order of payment due date
Separate accounts recorded in the General Debit and Credit columns of a
voucher register are posted individually during the month
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Totals of the special columns in the voucher register are posted to the
general ledger accounts.
Section 2: Voucher Check and Check Registers
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Businesses pay each voucher by check
Check and voucher are presented to a person authorized to approve
payment
Voucher check: a check with space for writing details about a cash
payment
Prepare checks in duplicate – original to the payee and other kept as the
source document for the transaction
Recording the details of on a voucher check: record voucher #, payee’s
invoice number, amount of invoice, amount of discount, net amount that
check is written for
Payee keeps the detachable portion of the voucher check for their records
Section 5 – Payment of a Voucher
o Person who prepares the check also completes this part of voucher
o Notes the date paid, the check number, and the amount
o After verification of correct info, sign the check and initials this
section
Person who prepares the check also usually records the info needed into
the voucher register
Date voucher paid and check number are written in the Paid columns of
the voucher register – on the same line as the original entry for the
voucher
Check is sent to the payee and the voucher is filed in the paid vouchers
file according to the name of the vendor
Check register: a journal used in a voucher system to record cash
payments
Check register is similar to and replaces a cash payments journal
Use a check register to maintain the checking account balance
Two “bank” columns in the check register – one to keep a running balance
and the other is to indicate deposits made
Only three general ledger accounts are impacted by a cash payment:
Vouchers Payable debit, Purchases Discount credit, and Cash credit.
Each check recorded as a debit to VP and credit to Cash. Only will use the
Purchases Discount if there was a discount taken
At the end of the month the special columns are totaled and posted. NO
separate amounts are posted because no general debit or credit columns
Two “Bank” columns are NOT totaled, ruled, or posted
Cash is proved if the last amount in the Balance column of the check
register equals the balance in the general ledger cash account
Starting a New Page in a Check Register:
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During the month – totals of VP, PD, Cash, and the Bank Balance
are brought forward. No amount is brought forward for Bank
Deposits
At the beginning of the month – only the Bank Balance is brought
forward because special amount totals have already been posted
Section 3: Selected Transactions in a Voucher System
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A purchases returns and allowances transaction reduces the total amount
owed for an invoice
Changing the Original Amount of a Voucher because of a
Purchase Return
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4.
Remove the original voucher from the unpaid vouchers file.
Write Canceled across the Section 5
Prepare a new voucher
Place the canceled voucher and the debit memorandum (which
indicates the PRA) inside the new voucher
5. In the voucher register, on the same line as the original voucher,
write See Vchr # (of the new voucher) in the Paid columns.
6. Record the new voucher on the next available line of the voucher
register
1. Enter the new voucher amount in the Vouchers Payable
credit column
2. Write the title Vouchers Payable in the General account title
column on the same line as the new voucher and debit it in
the General Debit column for the amount of the canceled
voucher
3. On the next line below Vouchers Payable in the General
account title column, write Purchases Returns and
Allowances and credit it for the amount of the discount in
the General Credit column
7. File the new voucher by its payment date in the unpaid vouchers
file. The payment date is based on the terms of the original invoice
– so the new voucher has the same due date as the canceled
voucher
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Recording Payroll in a Voucher Register
o Information from a payroll register is used in preparing a voucher
for payroll
o A payroll register is needed for several purposes, so it can NOT be
placed inside a voucher for payroll. Instead, it is summarized on
the inside of the voucher
The inside allows additional space so that more detailed info about
the transaction can be noted
o Outside of the voucher is completed as normal
o On the left side of the Voucher Register write the date of the
payroll and the word “Payroll” under the Payee column, then enter
the amount of the check to be written for the payroll in Vouchers
Payable credit
o On the right side of the Voucher Register write the Salary Expense
for each department (debits), and all of the Taxes that are credited
An entry also has to be made to the General Journal to record the
employer’s payroll taxes – just like from Chapter 3
Later when the payroll taxes are due, vouchers are prepared, approved
and paid.
One is prepared for state and one for federal taxes
Advantages of the voucher system
o Only a few people can authorize and approve payments. Helps
protect and control cash
o A voucher jacket provides a convenient way to file invoices and
related business papers for future reference
o Unpaid vouchers are filed by their payment dates to help ensure
prompt payment
o An unpaid vouchers file and a paid vouchers file eliminate posting
to an accounts payable ledger
o A paid vouchers file provides three different and easy ways to find
info about a paid voucher
If know voucher #, look in the voucher register
If know check #, look in the check register
If know the payee name, look in the paid vouchers file under
the payee name
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