Voucher System

Voucher system is an important tool to summarize all the cash expenditures in the entity. No matter for what purpose the expenditure is done, all cash transactions are recorded using the voucher system. In a voucher system, following things are maintained:

  • Vocuher
  • Voucher register
  • Check register
  • Paid voucher file
  • Unpaid voucher file

Journal Entry

Voucher Register

When stock is bought on cash

Purchases

   Voucher payable

When stock is bougt on credit terms.

Purchases

   Voucher payable

In case of purchase return

Voucher payable (old)

   Purchase return

   Voucher payable (New balancing)

In case of expenses incurred 

Expenses

Voucher payable

Debit

xxx

 

 

xxx

 

 

xxx

 

 

 

xxx

Credit

 

xxx

 

 

xxx

 

 

xxx

xxx

 

 

xxx 

 

Check Register

When cash is paid against purchases on cash

Voucher payable

   Cssh

When check is issued for credit purchase

Voucher payable

   Bank

   Purchase discount

 

Debit

xxx

 

 

xxx

 

Credit

 

xxx

 

 

xxx

 xxx

 

 

James & Co is involved in chemical manufacturing industry. It supplies various types of chemicals to major detergent manufacturing companies in the region. It uses voucher accounting system. Here are some of the transactions during the month of January. 2016:

Jan 01

 

Jan 05

Jan 10

Jan 15

 

 

Jan 18

Jan 20

Jan 22

Jan 25

Jan 28

Jan 30

Prepared voucher no 401 for $ 60,000 payable to Santa & Co for equipment purchased on terms 2/10,n/30.

Prepared voucher no 402 for $ 40,000payable to David & Co for purchased of inventory on terms 1/10, n/30.

 Issued check no 501 in payment of voucher no 402.

Prepared voucher no 403 for $ 8,600 to replenish the pretty cash fund for following disbursement:

Selling expenses $ 3,000; Supplies $ 4,000; General expenses $ 1,600

Issued check no 602 in payment of voucher no 403.

Issued check no 603 in payment of voucher no 401.

Prepared voucher no 404 for $ 4,000 payable to Natalia for advertisement.

Issued check no 604 in payment of voucher no 404.

Prepared voucher no 405 for $ 16,000 payable to office labor for Jan 2016 wages.

Prepared voucher no 605 in payment of voucher no 405.

Requirement

Journalize the above transactions in:

  • Voucher register
  • Check register

Solution

James & Co.

Voucher Register

General Journal Entries

 

Date

Description

Debit

Credit

Jan 01

Equipment

Voucher payable (no 401)

60,000

60,000

Jan 05

Purchases

Voucher payable (no 402)

40,000

40,000

Jan 15

Selling expenses

Supplies

General expenses

Voucher payable (no 403)

3,000

4,000

1,600

8,600

Jan 22

Advertisement expenses

Voucher payable (no 404)

4,000

4,000

Jan 28

Wages expenses

Voucher payable (no 405)

16,000

16,000

James & Co.

Check Register

General Journal Entries

Date

Description

Debit

Credit

Jan 10

Voucher payable (no 402)

Bank

Discount received

40,000

39,200

800

Jan 18

Voucher payable (no 403)

Bank

8,600

8,600

Jan 20

Voucher payable (no 401)

Bank

60,000

60,000

Jan 25

Voucher payable (no 404)

Bank

4,000

4,000

Jan 30

Voucher payable (no 405)

Bank

16,000

16,000