GLENCOE / McGraw-Hill
Internal
Control and
the Voucher
System
Using the
Voucher System
Section Objectives
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.
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
QUESTION:
What is a voucher register?
ANSWER:
A voucher register is a journal used to record
liabilities arising from business transactions.
Page
955
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.
Page
955
Voucher Register with Purchases
and Freight-In Columns
VOUCHER REGISTER
DATE
VOU.
NO.
PAYABLE TO
PAID
ACCTS.
CK. PAYABLE
DATE NO. CREDIT
PURCH.
DEBIT
FREIGHT
IN
DEBIT
Mar.
1 3-04 Gulf Shores Clothiers 3/10
304
782.10
10 3-10 Southern Express
3/12
305
65.00
10 3-11 Cotton Inc.
3/19
311
4,675.00
10 3-12 Eastern Truckers
3/13
306
75.00
782.10
65.00
4,675.00
75.00
Page
956
Voucher Register with Payroll
Transactions
VOUCHER REGISTER
DATE
VOU.
NO.
PAYABLE TO
Mar. 12 3-14 Nadia Khan
15 3-15 Beth Spencer
15 3-16 Robert Ramirez
PAID
CK.
DATE NO.
3/15
3/15
3/15
307
308
309
ACCTS.
PAYABLE
CREDIT
576.45
658.80
648.80
SOC. SEC. MEDICARE
TAX PAY.
TAX PAY.
CREDIT
CREDIT
43.40
49.60
49.60
10.15
11.60
11.60
EMP. INC.
TAX. PAY.
CREDIT
70.00
80.00
90.00
Page
956
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.
Page
956
Check Register
CHECK REGISTER
VOU.
NO.
ACCOUNTS
PAYABLE
DEBIT
DATE
CK.
NO.
20-Mar. 1
1
1
10
301
302
303
304
Business Rentals
Beth Spencer
Nadia Khan
Gulf Shores Clothiers
3-01
3-02
3-03
3-04
1,000.00
100.00
125.00
782.10
29
29
30
315
316
317
Mike Youngblood
Sumay Chen
Nadia Khan
3-27
3-28
3-29
1,000.00
950.00
65.00
PAYABLE TO
18,105.20
PURCHASES
DISCOUNTS
CREDIT
15.64
CASH
CREDIT
1,000.00
100.00
125.00
766.46
1,000.00
950.00
65.00
123.45
17,981.75
Page
958
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.
Page
958
Schedule of Vouchers Payable
CLOTHING CORPORATION
Schedule of Vouchers Payable
March 31, 20-Voucher
Number
2-29
3-05
3-06
3-07
3-08
3-13
3-17
3-18
3-19
3-20
3-21
3-22
3-23
Payable to
Cotton Inc.
Southern Paper Company
P&S Office Products
Henry Villas, Attorney
PHB, CPAs
Little Insurance Company
Paper Box Company
Eastside Utilities
Southern Gas
Gulf Shores Clothiers
Public Telephone Company
Truth Publishing Company
On-Time Delivery
Total
Amount
$3,000.00
225.00
75.00
500.00
250.00
500.00
195.00
35.00
155.00
3,300.00
125.00
450.00
179.00
$8,989.00
Page
958
Transactions Requiring Special
Treatment

Partial payments

Notes payable

Purchases returns and allowances

Purchases discounts lost
Page
959
Partial Payment of Previously
Recorded Voucher
1. Cancel the original voucher.
2. Issue new vouchers for partial payments.
Page
960
Payment of Notes Payable

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.
Page
960
Recording Purchases Returns
and Allowances
Method 1: Issue a new voucher and cancel the
original voucher.
Method 2: Make a notation for the allowance.
Page
961
Recording Cash Discounts Lost
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.
Page
961
R
E
V
I
E
W
Complete the following sentences:
register is a journal used to
A voucher
______________
record liabilities arising from business
transactions.
Because vouchers are used to record
business liabilities, most vouchers are
Accounts Payable
credited to ________________.
In a voucher system, the check register
payments journal.
replaces the cash
_____________
R
E
V
I
E
W
Complete the following sentences:
Unpaid vouchers should be filed according
due date
to ________.
Accounts Payable should
The balance of ________________
equal the total of the schedule of vouchers
payable.
of discount
Record purchase invoices net
_____________
to identify “lost” discounts.
Thank You
for using
College Accounting, Tenth Edition
Price • Haddock • Brock