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 |
Question
Sami & Co is involved in selling electronic items such as TV, AC, and Refrigerator etc. Following are the transactions for the month of March:
- Purchased fixtures amounting to $ 120,000 paying cash $ 50,000 and signing a note for the balance.
- Sami & Co. Issued a 10% 30 day note of $ 100,000 and paid $ 50,000 in settlement of a voucher payable $144,000.
- Sami also issued a 12% 60 day note in settlement of an outstanding voucher for $44,000.
- Inventory purchased for $ 90,000 from Darren and issued a voucher payable.
Required
As a chief accountant, you are required to pass on the journal entries in voucher register, cheque register and general journal.
Solution
Sami & Co.
Voucher Register
| Date | Particulars | Debit | Credit |
| 1 | Fixture
Voucher payable Voucher payable |
60,000 |
25,000 35,000 |
| 2 | Voucher payable
Interest expense Voucher payable Voucher payable |
72,000
3,000 |
50,000 25,000 |
| 3 | Purchase
Voucher payable |
45,000 |
45,000 |
Sami & Co.
Cheque Register
| Date | Particulars | Debit | Credit |
| 1 | Voucher payable
Cash |
25,000 |
25,000 |
| 2 | Voucher payable
Cash |
25,000 |
25,000 |
Sami & Co.
General Journal
| Date | Particulars | Debit | Credit |
| 1 | Voucher payable
Notes payable |
35,000 |
35,000 |
| 2 | Voucher payable
10% notes payable |
50,000 |
50,000 |
| 3 | Voucher payable
12% notes payable |
22,000 |
22,000 |
Voucher System Question
Tobia bason is a well known business name In the fashion industry. The accountant uses voucher system for all expenditure. You are required to record t he following transactions using voucher register and cheque register in the books of Tobia bason.
- Tobia issued cheque number 174 for $ 40,000 to pay off outstanding voucher number 199.
- Tobia issued cheque number 175 for developing petty cash fund amounting to $ 10,000 vide voucher number 201.
- Bought inventory for $ 42,000 from Alice on credit vide voucher number 202. For inventory management, Tobia exercises perpetual inventory system.
- Inventory returned amounting to $ 1,000 to Alice vide voucher number 203.
- Tobia issued cheque number 176 to pay off voucher number 203 after deductions of 2% cash discount.
- Tobia issued cheque number 177 amounting $ 10,000 as a travel advance to a staff vide voucher number 204.
- Tobia signed a 10 % note of 60 days maturity of $ 24,000 to pay off outstanding voucher number 200.
- Tobia issued cheque number 178 for $ 31,200 to settle note payable including interest $ 600 (voucher number 205).
- Tobia issued cheque number 179 for $ 400 in order to reimburse the travel expenses incurred by the employees in excess of travel advance.
- Tobia issued cheque number 800 to reimburse the deficiency in the petty cash fund for conveyance expense $ 2,200, supplies expense $ 3,200 & entertainment expense $ 2,800 vide voucher number 207.
Solution
Tobia Bason
Cheque Register
| Date | Particulars | Debit | Credit |
| 1 | Voucher payable
Cash Paid voucher no. 199 |
40,000 |
40,000 |
| 2 | Voucher payable
Cash Paid voucher no. 201 |
10,000 |
10,000 |
| 3 | Voucher payable
Purchase discount Cash Paid voucher no. 203 |
40,000 |
800 39,200 |
| 4 | Voucher payable
Cash Paid voucher no. 204 |
10,000 |
10,000 |
| 5 | Voucher payable
Cash Paid voucher no. 205 |
31,200 |
31,200 |
| 6 | Voucher payable
Cash Paid voucher no. 206 |
400 |
400 |
| 7 | Voucher payable
Cash Paid voucher no. 207 |
8,200 |
8,200 |
Tobia Bason
Voucher Register
| Date | Particulars | Debit | Credit |
| 1 | Petty cash fund
Voucher payable To prepare voucher number 201 for petty cash fund. |
10,000 |
10,000 |
| 2 | Purchase
Voucher payable To prepare voucher number 202 for purchased inventory. |
42,000 |
42,000 |
| 3 | Voucher payable
Purchase return Voucher payable To prepare voucher number 203 for after return inventory. |
42,000 |
2,000 40,000 |
| 4 | Prepaid traveling expense
Voucher payable To prepare voucher number 204 for advance travelling expense. |
10,000 | 10,000 |
| 5 | Notes payable
Interest expense Voucher payable To prepare voucher number 205 for notes payable. |
30,000
1,200 |
31,200 |
| 6 | Traveling expense
Voucher payable To prepare voucher number 206 for traveling expense. |
400 |
400 |
| 7 | Supplies expense
Conveyance expense Entertainment expense Voucher payable To prepare voucher number 207 for various expenses. |
3,200
2,200 2,800 |
8,200 |
Question
Noor & Co is a well known name in the perfume selling industry. In the last f ew years, it has achieved significant growth due to its innovative marketing tactics and strategy. That is why, it is regarded as the company of the year award in 2014. Noor & Co uses voucher system to account for its transactions. You are required to pass on the journal entries in the voucher register and in cheque register to complete the bookkeeping requirements. Following are the transactions for the month of June, 2014:
| June 1 | The company purchased a machinery from Alvin on credit terms of 3/10, net 30. For this, it issued voucher number 448 for $ 80,000 payable to Alvin. |
| June 5 | Noor & Co purchased merchandise inventory from Samsil on credit terms of 2/10, n/30. At the time of purchase, voucher number 449 was prepared for $ 70,000 payable to Samsil. |
| June 7 | The company issued cheque number 303 to pay off voucher number 448. |
| June 10 | Accountant prepared voucher number 450 for $ 9,600 to fund the petty cash that is to be used for entertainment 2,600, supplies 4,400, janitorial expenses 2,000 and courier charges 600. |
| June 20 | Accountant issued cheque number 304 against voucher number 449 due to lapse of discount period. |
| June 25 | Owner’s drawing $ 10,000 recorded by voucher number 451. |
| June 27 | Against voucher number 451, cheque number 305 was issued. |
| June 28 | Accountant prepared voucher number 452 of $ 20,000 as payroll payable to employees for the month of June 2014. |
| June 31 | Cheque number 306 was issued to make payment against voucher number 452. |
Answer
Noor & Company
Voucher Register
Journal entries
| Date | Particulars | Debit | Credit |
| June 1 | Machinery
Voucher payable Prepared voucher number 448 for machinery purchased. |
77,600 |
77,600 |
| June 5 | Purchase
Voucher payable Prepared voucher number 449 for purchase of inventory. |
68,600 |
68,600 |
| June 10 | Entertainment expense
Supplies expenses Courier expenses Janitorial expense Voucher payable Prepared voucher number 450 for petty cash expenses. |
2,600
4,400 600 2,000 |
9,600 |
| June 25 | Drawing
Voucher payable Prepared voucher number 451 for drawing. |
10,000 |
10,000 |
| June 28 | Payroll expenses
Voucher payable Prepared voucher number 452 for salaries. |
20,000 |
20,000 |
Noor & Company
Cheque Register
Journal entries
| Date | Particulars | Debit | Credit |
| June 7 | Voucher payable
Cash Issued cheque number 303 to make payment against voucher number 448. |
77,600 |
77,600 |
| June 20 | Voucher payable
Purchase discount Cash Issued cheque number 304 for making payment against voucher number 449. |
68,600
1,400 |
70,000 |
| June 27 | Voucher payable
Cash Issued cheque number 305 for the payment against voucher number 451. |
10,000 |
10,000 |
| June 30 | Voucher payable
Cash Issued cheque number 306 for making payment against voucher number 452. |
20,000 |
20,000 |