CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 5-1LESSON 5-1

Vouchers and Voucher Registers

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Info on Unit 2Info on Unit 2

This business is not departmentalized as in Unit 1 so accounts are not divided by departments

Uses Vouchers Payable instead of Accounts payable Only one Income Summary account because not

departmentalized Operating expenses are divided into two categories:

Selling Expenses and Administrative Expenses

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A Voucher System – General InfoA Voucher System – General Info

All businesses implement procedures to control and protect their assets.

Cash asset is most likely to be misused because its ownership is easily transferred.

Procedures to protect cash include: Storing in safe place Making regular bank deposits Approving all cash payments

Should be approved before payment to ensure the goods or services were ordered, have been received, and amount due is correct.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A Voucher System – General InfoA Voucher System – General Info Small businesses, owner or manager approves

payment Large business may have several people authorized

to approve payment Many larger businesses and some small businesses

use the Voucher System to control cash In a voucher system, no check can be issued without

a properly authorized voucher In a voucher system, an account called Vouchers

Payable replaces the account called Accounts Payable

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A Voucher System – General InfoA Voucher System – General Info

On a voucher, there are three dates: Date – date voucher was prepared Due Date – when payment must be received Payment Date – when check should be written (book

uses the example of writing checks 2 days before due)

Some vouchers are actually envelopes in which related documents may be placed

Voucher forms must be pre-numbered as another facet of the control system

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

A Voucher System – General InfoA Voucher System – General Info Unpaid vouchers are filed according to Payment Date in

Unpaid Vouchers File (not A/P ledger) Paid vouchers are filed according to Payee When an Invoice is checked for accuracy, a verification form

is stamped on the invoice (page 146) Vouchers have 5 Parts (page 147)

Payee Information Accounts Affected Voucher Approval Where the Voucher is Recorded Payment information (date, check #, etc.)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

7

LESSON 5-1

TERMS REVIEWTERMS REVIEW

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

voucher register – a journal used to record vouchers

page 149

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

8

LESSON 5-1

VERIFYING AN INVOICEVERIFYING AN INVOICE page 145

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

9

LESSON 5-1

A VOUCHERA VOUCHER

August 1. Purchased merchandise on account from O’Riley Company, $3,500.00. Voucher No. 647.

Purchases

3,500.00

Voucher’s Payable

3,500.00

page 145

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

10

LESSON 5-1

PREPARING A VOUCHER PREPARING A VOUCHER FROM AN INVOICEFROM AN INVOICE page 146

Section 1—Payee InformationSection 1—Payee Information

Section 2—Accounts AffectedSection 2—Accounts Affected

Section 3—Voucher ApprovalSection 3—Voucher Approval

Section 4—Information about where the voucher is recordedSection 4—Information about where the voucher is recorded

Section 5—Information about the payment of the voucherSection 5—Information about the payment of the voucher

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

11

LESSON 5-1

1. Write date.

2. Record payee.

3. Write voucher number.

5. Record debit amount.

4. Enter credit amount.

VOUCHER REGISTERVOUCHER REGISTER pages 147 and 148

11 22 33 5544

August 1. Purchased merchandise on account from O’Riley Company, $3,500.00. Voucher No. 647.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

12

LESSON 5-1

5. Record debit amount and write the title of the account to be debited.

4. Enter credit amount.

VOUCHER REGISTERVOUCHER REGISTER page 147 and 148

11 22 33 44

August 2. Received invoice for sales miscellaneous expense from Glenhill Company, $40.00. Voucher No. 648.

1. Write date.

2. Record payee.

3. Write voucher number.

55

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 5-2LESSON 5-2

Voucher Check and Check Registers

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

14

LESSON 5-2

TERMS REVIEWTERMS REVIEW

voucher check – form used to write a check and details of the payment

check register – form used to record all checks written in the voucher system

page 153

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

15

LESSON 5-2

6. Prepare check to payee for net amount of invoice.

3. Enter amount of invoice.

4. Enter amount of discount.

5. Enter net amount.

1. Enter voucher number.

2. Enter payee’s invoice number.

PREPARING A VOUCHER CHECKPREPARING A VOUCHER CHECK page 150

66

11

22

44

55

33

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

16

LESSON 5-2

6. Write credit amount(s).

3. Write check number.

4. Record voucher number.

5. Enter debit amount.

1. Write date.

2. Record payee.

7. Calculate and record new balance.

JOURNALIZING CASH PAYMENTSJOURNALIZING CASH PAYMENTS page 151

11 2233

44 55 66 77

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

17

LESSON 5-2

PROVING, RULING, AND PROVING, RULING, AND POSTING A CHECK REGISTERPOSTING A CHECK REGISTER page 152

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

18

LESSON 5-2

STARTING A NEW PAGE STARTING A NEW PAGE OF A CHECK REGISTEROF A CHECK REGISTER page 152

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 5-3LESSON 5-3

Selected Transactions in a Voucher System

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

20

LESSON 5-3

PURCHASES RETURNS AND PURCHASES RETURNS AND ALLOWANCESALLOWANCES page 155

August 12. Issued Debit Memorandum No. 98 to Ramsey, Inc. for return of merchandise purchased, $85.00. Cancel Voucher No. 652. Voucher No. 655.

1. Cancel the original voucher.2. Prepare a new voucher.3. In the voucher register, reference

the new voucher number.4. Record the new voucher.5. File the new voucher by its

payment date in the unpaid vouchers file.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

21

LESSON 5-3

RECORDING PAYROLL IN A RECORDING PAYROLL IN A VOUCHER REGISTERVOUCHER REGISTER pages 156 and 157

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

22

LESSON 5-3

A PAYROLL VOUCHERA PAYROLL VOUCHER page 156

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

23

LESSON 5-3

ADVANTAGES OF A VOUCHER ADVANTAGES OF A VOUCHER SYSTEMSYSTEM

1.1. Only a few people can authorize and approve all cash payments.

2.2. A voucher jacket provides a convenient way to file invoices and related business papers for future reference.

3.3. Unpaid vouchers are filed by their payment dates to help ensure payment of invoices within the discount periods.

4.4. An unpaid vouchers file and a paid vouchers file eliminate posting to an accounts payable ledger.

5.5. A paid vouchers file provides three different and easy ways to find information about a paid voucher.

page 158