The Voucher System Chapter 23 2004 Prentice Hall

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The Voucher System Chapter 23 © 2004 Prentice Hall Business Publishing, College Accounting: A

The Voucher System Chapter 23 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 1

Purchasing Goods Payment Verifying Numbers Receiving Goods Purchase Invoice Purchase Order Purchase Requisition ©

Purchasing Goods Payment Verifying Numbers Receiving Goods Purchase Invoice Purchase Order Purchase Requisition © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 2

Characteristics of a Voucher System Separation of duties is built into a voucher system.

Characteristics of a Voucher System Separation of duties is built into a voucher system. Authorization of transactions is separated from recording and execution of these activities. No purchases are made without an approved voucher. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 3

Characteristics of a Voucher System All vouchers are supported by documents and records. Cross-referencing

Characteristics of a Voucher System All vouchers are supported by documents and records. Cross-referencing and cross-checking are part of the voucher system. Transactions are traced throughout the system. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 4

Learning Objective 1 Preparing vouchers, recording them in a voucher register, and recording payment

Learning Objective 1 Preparing vouchers, recording them in a voucher register, and recording payment of vouchers in a check register. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 5

Learning Unit 23 -1 (Handling Transactions) What are the elements of a voucher system?

Learning Unit 23 -1 (Handling Transactions) What are the elements of a voucher system? Vouchers Voucher register Unpaid voucher file Check register Paid voucher file © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 6

Learning Unit 23 -1 (Handling Transactions) Jones Supply Co. Purchase Order: 0732 Date: November

Learning Unit 23 -1 (Handling Transactions) Jones Supply Co. Purchase Order: 0732 Date: November 3, 20 x 8 Ship to: [Same as Above] Ordered from: Beam Enterprise Date Needed: November 28, 20 x 8 Ship via: Rail F. O. B. Terms Destination 2/10, n/30 Quantity Ordered Received Description 100 V 1342 Staplers 200 V 3918 Calculators Total By: Original Purchase Order Unit Price $ 5. 00 20. 00 Amount $ 500 4, 000 $4, 500 Bill Small Authorized Signature © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 7

Learning Unit 23 -1 (Handling Transactions) Beam Enterprise Invoice Number: B 20 Date: Nov.

Learning Unit 23 -1 (Handling Transactions) Beam Enterprise Invoice Number: B 20 Date: Nov. 28, 20 x 8 Sold to: Jones Supply Co. Ship to: [Same] Your Purchase Order Inv. No. Salesman Number: 0732 B 20 Munroe Terms 2/10, n/30 Quantity Ordered Received Description 100 V 1342 Staplers 200 V 3918 Calculators Total Unit Price $ 5. 00 20. 00 Shipped via Rail Amount $ 500 4, 000 $4, 500 Original Invoice © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 8

Learning Unit 23 -1 (Handling Transactions) Jones Supply Co. Invoice Number and Date: B

Learning Unit 23 -1 (Handling Transactions) Jones Supply Co. Invoice Number and Date: B 20 November 28, 20 x 8 Purchase Order Number: 0732 Voucher No. 23 Date check needed: December 5, 20 x 8 Payable to: Beam Enterprise Invoice Amount $4, 500 Less: Discount 90 Net Amount Due $4, 410 Verification Steps: (1) Invoice compared with purchase requisition and purchase order (2) Invoice compared with receiving report (3) Extensions and footings done (4) Approved for payment Approved by: Date JS 12/1/x 8 BM BJ PS 12/1/x 8 12/3/x 8 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 9

Learning Unit 23 -1 (Handling Transactions) All vouchers are prenumbered. Any voided vouchers must

Learning Unit 23 -1 (Handling Transactions) All vouchers are prenumbered. Any voided vouchers must be kept on file. The invoice for a transaction is compared to the related purchase order, receiving report, and other supporting documentation. The voucher is prepared when all information is cross-referenced. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 10

Learning Unit 23 -1 (Handling Transactions) The voucher register is a special journal that

Learning Unit 23 -1 (Handling Transactions) The voucher register is a special journal that replaces the purchases journal. A voucher is entered into the register on the date the related liability is incurred. A check number is entered on the date of payment. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 11

Learning Unit 23 -1 (Handling Transactions) Column totals for Vouchers Payable, Purchases, Supplies, etc.

Learning Unit 23 -1 (Handling Transactions) Column totals for Vouchers Payable, Purchases, Supplies, etc. , are posted at the end of the month. Individual amounts are posted to the subsidiary ledgers daily. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 12

Learning Unit 23 -1 (Handling Transactions) Each voucher is recorded in the voucher register

Learning Unit 23 -1 (Handling Transactions) Each voucher is recorded in the voucher register at the time a liability is incurred. It is then placed into a file in the order of the due date. Filing by due date is important in order to avoid any late payments. The voucher remains in this file until it is paid. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 13

Learning Unit 23 -1 (Handling Transactions) The check register replaces the cash payments journal.

Learning Unit 23 -1 (Handling Transactions) The check register replaces the cash payments journal. The check register for a voucher system has many columns. The columns in this special register have account and number headings linked to the voucher register. The paid vouchers are filed in sequential order of voucher numbers. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 14

Learning Objective 2 Recording revised vouchers to handle nonroutine transactions in a voucher system.

Learning Objective 2 Recording revised vouchers to handle nonroutine transactions in a voucher system. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 15

Learning Unit 23 -2 (Recording Additional Transactions) Situation 1: Purchases returns and allowances after

Learning Unit 23 -2 (Recording Additional Transactions) Situation 1: Purchases returns and allowances after voucher has been recorded Situation 2: Partial payments planned after voucher prepared for full amount © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 16

Learning Objective 3 Using the net amount method to record invoices and payment. ©

Learning Objective 3 Using the net amount method to record invoices and payment. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 17

Learning Unit 23 -2 (Recording Additional Transactions) How do some companies record purchases at

Learning Unit 23 -2 (Recording Additional Transactions) How do some companies record purchases at net amount? Vouchers are recorded at net amount. The applicable discount is subtracted first. A Purchases Discount Lost account is used to record missed discounts related to late payments. © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 18

Learning Unit 23 -2 (Recording Additional Transactions) Mill Company buys merchandise on account for

Learning Unit 23 -2 (Recording Additional Transactions) Mill Company buys merchandise on account for $8, 000, 2/10, n/30. Gross method: Purchases Vouchers Payable 8, 000 Net method: Purchases Vouchers Payable 7, 840 8, 000 7, 840 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 19

Learning Unit 23 -2 (Recording Additional Transactions) What if the discount is taken on

Learning Unit 23 -2 (Recording Additional Transactions) What if the discount is taken on time? Gross method: Vouchers Payable Purchases Discount Cash Net method: Vouchers Payable Cash 8, 000 160 7, 840 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 20

Learning Unit 23 -2 (Recording Additional Transactions) What if the discount is missed? Gross

Learning Unit 23 -2 (Recording Additional Transactions) What if the discount is missed? Gross method: Vouchers Payable Cash 8, 000 Net method: Vouchers Payable Discount Lost Cash 7, 840 160 8, 000 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 21

End of Chapter 23 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical

End of Chapter 23 © 2004 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 9 e by Slater 23 - 22

Chapter 23 The Voucher System 2010 Prentice HallChapter 23 The Voucher System 2010 Prentice Hall
CHIETA VOUCHER PROJECT Voucher Project System Flow SummaryCHIETA VOUCHER PROJECT Voucher Project System Flow Summary
1 Housing Choice Voucher Program Voucher Management System1 Housing Choice Voucher Program Voucher Management System
Entering Voucher Batch Request Concept Entering Voucher BatchEntering Voucher Batch Request Concept Entering Voucher Batch
The Dutch Innovation voucher The Dutch innovation voucherThe Dutch Innovation voucher The Dutch innovation voucher
Housing Choice Voucher Homeownership Program Voucher Homeownership ProgramHousing Choice Voucher Homeownership Program Voucher Homeownership Program
CPIMCLTD Bundling Voucher Distribution Process CPIMCLTD Bundling VoucherCPIMCLTD Bundling Voucher Distribution Process CPIMCLTD Bundling Voucher
Reviewing Voucher Information Concept Reviewing Voucher Information ReviewingReviewing Voucher Information Concept Reviewing Voucher Information Reviewing
Selecting Voucher Line Updating Concept Selecting Voucher LineSelecting Voucher Line Updating Concept Selecting Voucher Line
Viewing Voucher History Concept Viewing Voucher History ViewingViewing Voucher History Concept Viewing Voucher History Viewing
Posting a Voucher Concept Posting a Voucher PostingPosting a Voucher Concept Posting a Voucher Posting
Viewing Voucher Status Summary Concept Viewing Voucher StatusViewing Voucher Status Summary Concept Viewing Voucher Status
C CU T CHC Prentice 2003 Prentice HallC CU T CHC Prentice 2003 Prentice Hall
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