Chapter # 3 - Weeblya4accounting.weebly.com/uploads/7/1/2/8/7128209/3-voucher_syste… · Chapter # 3 VOUCHER SYSTEM An accounting system includes procedures for recording and reporting

Chapter # 3 Voucher System

Principles of Accounting – B.Com Part – I

Sameer Hussain

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Voucher System

Chapter # 3

Sameer Hussain www.a4accounting.weebly.com Page 32

WHAT THE EXAMINER USUALLY ASK?

Voucher Register in General Journal form. Cheque Register in General Journal form. General Journal entries. Voucher Journal. Cheque Journal.

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Chapter # 3

VOUCHER SYSTEM An accounting system includes procedures for recording and reporting accurate and up-to-date financial info. It should also include procedures to assist management in controlling daily operations. Cash is the asset most likely to be misused because its ownership is easily transferred.

Ways to Control Cash: Store in a safe place, make deposits regularly, and approve all cash payments.

voucher

Voucher is 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. In a voucher system, NO check can be issued without a properly authorized voucher.

1. Vouchers and Voucher register

When receive an invoice, a verification form is stamped on the invoice – this verification form is then filled in as the steps are completed.

Each person doing a part of the work places a check mark next to the item verified and initials the verification form to show responsibility for that part.

After an invoice is checked for accuracy, a voucher is prepared for each invoice received from a vendor.

When a voucher system is used, the source document for an approved cash payment is the voucher.

Instead of Accounts Payable use Vouchers Payable. In a voucher system, Vouchers Payable is used to record all amounts to be paid by

cheque not just amounts of items bought on account. The normal balance is on the credit side of Vouchers Payable. Unpaid vouchers file shows all amounts owed and to whom they are owed. Pre-numbered vouchers serve as an additional control within the voucher system.

Five areas to record info:

(a) Payee Info. (b) Accounts affected info. (c) Voucher approval. (d) Info about where voucher is recorded. (e) Payment info.

Payee Info: Use verified invoice to enter info, discount due date is calculated using the date the invoice is dated. Most cheques received within 2 days so payment date is 2 days before the discount due date.

Accounts Affected: It lists preprinted account titles for accounts most often affected by cash payments. Only the amount of the invoice needs to be entered. Total debits and credits must be calculated and entered.

Voucher System

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Sameer Hussain

Voucher Approval:

As a double check, certain people are authorized to approve vouchers before they are journalized. After a voucher has been approved, it is recorded in the voucher register. A missing voucher number shows that a voucher has not been recorded. Voucher registers have special columns: Vouchers Payable –credit, Purchases – debit, Supplies debits for the different types of supplies, everything else is recorded in the general columns with the name of the account listed.

When the Voucher is Recorded:

Person indicates what page the info is recorded in the voucher Register. After voucher journalized and noted, the voucher is filed in the unpaid vouchers file. Separate accounts recorded in the General Debit and Credit columns of a voucher register are posted individually during the month. Totals of the special columns in the voucher register are posted to the general ledger accounts.

2. Vouchers cheque and cheque register

Businesses pay each voucher by cheque. Cheque and voucher are presented to a person authorized to approve payment.

Payment of a Voucher:

After verification of correct info, sign the cheque. Person who prepares the check also usually records the info needed into the voucher register. Date voucher paid and cheque numbers are written in the Paid columns of the voucher register – on the same line as the original entry for the voucher. Cheque is sent to the payee and the voucher is filed in the paid vouchers file according to the name of the vendor.

Cheque register

Cheque register is a journal used in a voucher system to record cash payments. Cheque register is similar to and replaces a cash payments journal. Only three general ledger accounts are impacted by a cash payment: Vouchers Payable debit, Purchases Discount credit, and Cash credit. Each cheque recorded as a debit to VP and credit to Cash. Only will use the Purchases Discount if there was a discount taken. At the end of the month the special columns are totaled and posted. Cash is proved if the last amount in the Balance column of the cheque register equals the balance in the general ledger cash account.

3. Selected transactions in voucher system

A purchases returns and allowances transaction reduces the total amount owed for an invoice.

Changing the original amount of a voucher because

of a purchase return

Remove the original voucher from the unpaid vouchers file. Prepare a new voucher. Place the canceled voucher and the debit memorandum (which indicates the PRA) inside

the new voucher. In the voucher register, on the same line as the original voucher, write See Voucher # (of

the new voucher) in the Paid columns.

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Record the new voucher on the next available line of the voucher register. o Enter the new voucher amount in the Vouchers Payable credit column. o Write the title Vouchers Payable in the General account title column on the same

line as the new voucher and debit it in the General Debit column for the amount of the canceled voucher.

o On the next line below Vouchers Payable in the General account title column, write Purchases Returns and Allowances and credit it for the amount of the discount in the General Credit column.

File the new voucher by its payment date in the unpaid vouchers file. The payment date is based on the terms of the original invoice – so the new voucher has the same due date as the canceled voucher.

Recording payroll in a voucher register

Information from a payroll register is used in preparing a voucher for payroll. A payroll register is needed for several purposes, so it cannot be placed inside a voucher for payroll. Instead, it is summarized on the inside of the voucher. The inside allows additional space so that more detailed info about the transaction can be noted. Outside of the voucher is completed as normal. On the left side of the Voucher Register write the date of the payroll and the word “Payroll” under the Payee column, and then enter the amount of the cheque to be written for the payroll in Vouchers Payable credit. On the right side of the Voucher Register write the Salary Expense for each department (debits), and all of the Taxes that are credited. An entry also has to be made to the General Journal to record the employer’s payroll taxes. Later when the payroll taxes are due, vouchers are prepared, approved and paid.

Advantages of voucher system

Only a few people can authorize and approve payments. Helps protect and control cash. A voucher jacket provides a convenient way to file invoices and related business papers

for future reference. Unpaid vouchers are filed by their payment dates to help ensure prompt payment. An unpaid vouchers file and a paid vouchers file eliminate posting to an accounts

payable ledger. A paid vouchers file provides three different and easy ways to find info about a paid

voucher: o If know voucher #, look in the voucher register. o If know cheque #, look in the cheque register. o If know the payee name, look in the paid vouchers file under the payee name.

Illustration # 1: (Voucher Register & Cheque Register) 1997 Private – UOK

Baluch Corporation uses voucher system. The following transaction occurred during the May 1997:

(i) Voucher No. 100 prepared to purchase office equipment at cost of Rs.4,000 from Hub Furniture Co.

(ii) Cheque No. 114 issued in payment of voucher No. 100. (iii) Voucher No. 101 prepared to establish a petty cash fund of Rs.150. (iv) Cheque No. 115 issued in payment of voucher No. 101. (v) Voucher No. 102 prepared to replenish the petty cash fund which contained Rs.40 cash

and receipts for postage Rs.38, miscellaneous expense Rs.54, and delivery service Rs.18. (vi) Cheque No. 116 issued in payment of voucher No. 102.

REQUIRED Record the above transactions in voucher register and cheque register in the General journal form.

Voucher System

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Sameer Hussain

solution # 1:

BALUCH CORPORATION GENERAL JOURNAL

(VOUCHER REGISTER) FOR THE MONTH OF MAY 1997

Date Particulars P/R Debit Credit 1 Office equipment 4,000 Voucher payable (No. 100) 4,000 (To record the voucher issued for purchase of

office equipment)

2 Petty cash fund 150 Voucher payable (No. 101) 150 (To record the voucher issued for establishment of

petty cash fund)

3 Postage 38 Miscellaneous expense 54 Delivery service 18 Voucher payable (No. 102) 110 (To record the voucher issued for replenishment

of petty cash fund)

BALUCH CORPORATION

GENERAL JOURNAL (CHEQUE REGISTER)

FOR THE MONTH OF MAY 1997 Date Particulars P/R Debit Credit

1 Voucher payable (No. 100) 4,000 Bank 4,000 (To record the payment of voucher No. 100) 2 Voucher payable (No. 101) 150 Bank 150 (To record the payment of voucher No. 101) 3 Voucher payable (No. 102) 110 Bank 110 (To record the payment of voucher No. 102)

Illustration # 2: (Voucher, Cheque Register & General Journal) 2000 Regular & Private – UOK

M&N Co. uses the voucher system. Selected transactions for November are presented below:- 1) Issued a non-interest bearing note for Rs.7,500/= in settlement of voucher payable for

Rs.7,000. 2) Issued a 12% 60 days note in settlement of an outstanding voucher for Rs.8,000/=. 3) Issued cheques for Rs.2,500/= to establish petty cash fund. 4) Purchased merchandise from Tahir Traders for Rs.8,500/= on terms 3/10, n/30. 5) Purchased a computer for Rs.18,000/=, paying Rs.8,000/= and signing a note for the

balance. 6) Issued a debit memo to Tahir Traders for Rs.500/= for return of defective merchandise. 7) Issued a cheque for Rs.2,500/= to increase the petty cash fund to replenish the fund for

postage expense Rs.1,200/=, entertainment expense Rs.900/= and miscellaneous expense Rs.400/=.

8) Issued a 10%, 30 days note for Rs.3,000/= and paid Rs.3,500/= in settlement of a voucher payable for Rs.6,000/=.

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REQUIRED Using general journal forms show how the above transactions would be recorded in voucher register, cheque register and general journal.

solution # 2:

M&N CO. GENERAL JOURNAL

(VOUCHER REGISTER) Date Particulars P/R Debit Credit

1 No Entry 2 No Entry 3 Petty cash fund 2,500 Voucher payable 2,500 (To record the voucher issued for petty cash fund) 4 Purchases 8,500 Voucher payable 8,500 (To record the voucher issued for purchase of

goods)

5 Equipment 18,000 Voucher payable 10,000 Voucher payable 8,000 (To record the voucher issued for purchase of

computer)

6 Voucher payable 8,500 Purchase returns and allowances 500 Voucher payable 8,000 (To record the issue of voucher for purchase

return)

7 Postage expense 1,200 Entertainment expense 900 Miscellaneous expense 400 Voucher payable 2,500 (To record the issue of voucher for petty cash

expenses)

8 Voucher payable 6,000 Interest expense 500 Voucher payable 3,000 Voucher payable 3,500 (To record the issue of voucher in settlement of

previous voucher payable)

M&N CO.

GENERAL JOURNAL (CHEQUE REGISTER)

Date Particulars P/R Debit Credit 1 No Entry 2 No Entry

Voucher System

Chapter # 3


Sameer Hussain

Date Particulars P/R Debit Credit 3 Voucher payable 2,500 Bank 2,500 (To record the cheque issued for petty cash fund) 4 No Entry 5 Voucher payable 8,000 Bank 8,000 (To record the cheque issued for purchase of

goods)

6 No Entry 7 Voucher payable 2,500 Bank 2,500 (To record the cheque issued for petty cash

expenses)

8 Voucher payable 3,500 Bank 3,500 (To record the cheque issued for payment of

voucher)

M&N CO.

GENERAL JOURNAL Date Particulars P/R Debit Credit

1 Voucher payable 7,000 Interest expense 500 Notes payable 7,500 (To record the promissory note issued in

settlement of voucher payable)

2 Voucher payable 8,000 12% Notes payable 8,000 (To record the promissory note issued in


3 No Entry 4 No Entry 5 Voucher payable 10,000 Notes payable 10,000 (To record the promissory note issued in


6 No Entry 7 No Entry 8 Voucher payable 3,000 10% Notes payable 3,000 (To record the promissory note issued in


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Practice questions

Question # 1: 1996 Private – UOK Enter the following transactions in General Journal form. Assume the use of voucher register and a cheque register: (i) Issued voucher no. 722 to establish a petty cash fund Rs.1,000. (ii) Prepare a cheque no. 932 in payment of voucher no. 722. (iii) Petty cash receipts indicate the following expenditures: Store supplies Rs.11.44; Office supplies expenses Rs.16.20; Miscellaneous expenses Rs.48.30 Issued voucher no. 832 reimburses the petty cash fund. Question # 2: 1993 Private – UOK A Voucher System is used by Mehran Corporation. A few of the transaction are presented below. October 01, 1993, Record Voucher No. 721 for Rs.2,000 payable to Shan Office Equipment

Company for office equipment purchased on terms n/30. October 03, 1993, Recorded Voucher No. 726 for Rs.1,000 payable to Wali Co. for

merchandise purchased on terms 2/10. n/30. October 10, 1993, Issues Cheque No. 880 in payment of voucher No. 726. October 15, 1993, Recorded Voucher No. 745 for Rs.100, payable to Indus Time for

advertising. October 20, 1993, Recorded Voucher No. 750 for Rs.13,115 to replenish the petty cash fund

for the following disbursements: Store Supplies Rs.4,555, Office Supplies Rs.3,747, Miscellaneous General Expense Rs.4,813.

October 25, 1993, Issued Cheque No. 899 in payment of voucher No. 750. October 27, 1993, Issued Cheque No. 907 in payment of voucher No. 745. October 31, 1993, Issued Cheque No. 919 in payment of voucher No. 721. REQUIRED Using the Two-Column Journal from recorded the above transactions in:

(i) Voucher Register. (ii) Cheque Register. Question # 3: 1995 Regular – UOK Umair & Company uses Voucher System. Following are the vouchers prepared and cheques during November 1995: November 01, Prepared voucher No. 301 for Rs.30,000 payable to Aslam & Co. for machinery

purchased on terms 2/10,n/30. November 05, Prepared voucher No. 302 for Rs.20,000 payable to Danish & Co. for purchased

for merchandise on terms 1/10,n/30. November 10, Issued cheque No. 501 in payment of voucher No. 302. November 15, Prepared voucher No. 303 for Rs.4,300 to replenish the petty cash fund for

following disbursement. Supplies Rs.2,000, Miscellaneous selling expense Rs.1,500, Miscellaneous general expense Rs.800.

November 18, Issued cheque No. 502 in payment of voucher No. 303. November 20, Issued cheque No. 503 in payment of voucher No. 301. November 22, Prepared voucher No. 304 for Rs.2,000 payable to Daily Dawn for advertisement. November 25, Issued Cheque No. 504 in payment of voucher No. 304. November 28, Prepared voucher No. 305 for Rs.8,000 payable to office employees for

November, 1995 salaries. November 30, Issued cheque No. 505 in payment of voucher No. 305. REQUIRED Record the above transactions in General Journal From in 1. Voucher Register 2. Cheque Register

Voucher System

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Sameer Hussain

Question # 4: 2009 Regular – UOK Hafeez Company uses the voucher system, and performed the following selected transactions: February 1: Prepared a voucher No.27 of Rs.10,000 for merchandise purchased at 2/10, n/30. February 4: Recorded the voucher No. 28 of Rs.1,000 payable to GEO – TV for advertisement. February 10: Issued a cheque No. 0033 for the voucher No. 27, after discount and a cheque No.

0035 for the voucher No. 28. February 25: Prepared voucher No. 29 and issued the cheque No. 0036, for purchase of an office

typewriter Rs.5,000. February 28: Prepared voucher No. 30 for the utility bills of Rs.4,000 for the month. REQUIRED Record the above transactions of voucher and the cheque register (in general journal). Question # 5: 1992 Regular – UOK Akram Company uses a voucher system. Following are the vouchers prepared and cheques issued during May 1992. May 02, Voucher No. 101 prepared for Rs.8,000 payable to Usman & Co. for merchandise

purchased on terms 2/10, n/30. May 05, Voucher No. 102 prepared for Rs.12,000 payable to Hashim for Machinery

purchased on terms 1/10, n/30. May 11, Cheque No 114 issued in payment of Voucher No. 101. May 15, Cheque No. 115 issued in payment of Voucher No. 102. May 18, Voucher No. 103 prepared for Rs.500 to replenish the petty cash fun for the

following disbursements: Office supplies Rs.150, Miscellaneous expense Rs.250 & Delivery expense Rs.100.

May 22, Voucher No. 104 prepared for Rs.600 payable to DAWN for advertising and advertisement in the News Paper.

May 27, Cheque No. 116 issued in payment of Voucher No. 103. May 30, Cheque No. 117 issued in payment of Voucher No. 104. REQUIRED Enter the following transactions in General Journal form. Question # 6: 1996 Regular – UOK Record the following transactions of Aslam in General Journal form. Assume the use of voucher register and cheque register:

(a) Purchase raw material from Zahid Rs.20,000 voucher No. 550 and paid transportation expense thereon Rs.300 voucher No. 551 vide cheque No. B-25.

(b) Paid advertisement expense voucher No. 552 Rs.2,000. (c) Purchased equipment Rs.6,000 making down payment of Rs.2,000 and agreeing to pay

the balance in 15 days. (d) Advance by cheque Rs.4,000 for travel expenses to an officer making a business trip. (e) Reimbursed the officer by cheque with Rs.1,000 for expenses incurred by him in excess

of travel expenses. Question # 7: 1998 Private – UOK Jawaid Ltd. follows the voucher system. The following transactions were incurred in to during the month of August 1998. August 01 Purchased merchandise on account for Rs.15,000; voucher No. 15. August 05 Defective merchandise was returned Rs.500 voucher No. 16. August 10 Paid voucher No. 16 less discount 250. August 15 Purchased a machine for Rs.18,000 paying Rs.8,000 in cash voucher No. 17 and

18 (voucher No. 17 for Rs.8,000 and 18 for Rs.10,000). August 25 Paid voucher No. 17.

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REQUIRED Give entries of the voucher register and the cash register in the Genera Journal. Question # 8: 2011 Regular – UOK Nazim & Co. uses Voucher System by net price method. Following are the vouchers prepared and cheques issued during December, 2010:

December 1: Prepared voucher No.348 for Rs.40,000 payable to Amjad & Co. for machinery purchased on terms 3/10, n/30.

December 5: Prepared voucher No.349 for Rs.35,000 payable to Samsam & Co. for purchase of merchandise on terms 2/10, n/30.

December 7: Issued cheque No.203 in payment of voucher No.348. December 10: Prepared voucher No.350 for Rs.4,800 to replenish the petty cash fund for the

following disbursement: Supplies Rs.2,200; Entertainment Rs.1,300; Postage Rs.300; Miscellaneous general expense Rs.1,000.

December 20: Issued cheque No.204 for in payment of voucher No.349 because the discount period had elapsed.

December 25: Prepared voucher No.351 for Rs.5,000 as drawing by owner. December 27: Issued cheque No.205 in payment of voucher No.351. December 28: Prepared voucher No.352 for Rs.10,000 payable to employees for December,

2010 salaries. December 31: Issued cheque No.206 in payment of voucher No.352. REQUIRED Record the above transactions in General Journal form. Question # 9: 1993 Regular – UOK The following totals appear in the voucher register at the end of December 01, 1992. Selling Expense Rs.12,040, General Expense Rs.8,420, Transportation – in Rs.2,560, Accounts Payable Rs.1,23,500, Purchases Rs.36,880, Accrued Payable Rs.31,280, Other general accounts Rs.32,320, Including Notes Payable Rs.32,000, Interest Expense Rs.320. The following totals appear in the Cheque register at the end of December 1992. Bank Rs.23,420, Accounts Payable Rs.22,780, Purchase discount Rs.640. REQUIRED Give the necessary journal entries to record the above information as on December 31, 1992. Question # 10: 1999 Regular & Private – UOK In the books of Salman Company, the following column totals appear in the voucher register at the end of June 1998: Voucher payable Rs.51,750; Purchases Rs.18,440; Transportation in Rs.670; Advertising Rs.1,020; Supplies Rs.940; Repairs Rs.670; Accrued payroll Rs.13,850; Other general ledger accounts Rs.16,160 (notes payable Rs.16,000 and mark-up Rs.160). REQUIRED Give the necessary journal entry in proper form to summarize above totals. Question # 11: 1999 Regular & Private – UOK Rehman & Company recorded in July voucher No. 51 to Shaheen Company for Rs.3,000 in respect of purchase of machine which remained unpaid at the end of July. In August, it was found that the invoice had been incorrectly recorded and the correct amount was Rs.3,500. REQUIRED How this error should be corrected in the books of Rehman & Company?

Voucher System

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Sameer Hussain

Question # 12: 1990 regular & Private – UOK Shaheen Co. uses the voucher system. Given below are selected transactions relating to the same company. March 01, Recorded Voucher No. 17 for Rs.4,000 payable to Nadir Co. for Merchandise

purchases (terms 2/10, n/30). March 02, Recorded Voucher No. 18 for Rs.500 payable to Pak Advertisers. March 10, Issued Cheque No. 151 in payment of Voucher No. 18. March 15, Issued Cheque No. 152 in payment of Voucher No. 17. March 17, Recorded Voucher No. 19 for Rs.15,236 to replenish the Petty Cash Fund for the

following: Office Supplies Rs.3,440, Store Supplies Rs.4,000, Miscellaneous Selling Expense Rs.3,900 and Miscellaneous General Expenses Rs.3,896.

March 20, Issued Cheque No. 153 in payment of Voucher No. 19. REQUIRED Record the above transactions in the Voucher Register and the Cheque Register. Question # 13: 1988 Regular & Private – UOK A Voucher System is used by Rizwan Corporation. A few of the transactions are presented below:

(1) Drew a cheque to establish petty cash fund by Rs.500. (2) Purchased goods from Faisal Company for Rs.10,000 terms 2/10, n/30. (3) Received a credit memo from Faisal Company for Rs.1,000 for Return of portion of

goods purchased from them. (4) Paid Faisal Company invoice taking the discount. (5) Advanced by cheque Rs.3,000 for Travel expenses to Officer making a business trip. (6) Purchased an equipment for Rs.15,000. Making a down payment of Rs.5,000 and

agreeing to pay the balance in ten days. (7) Drew a cheque to reimburse petty cash fund for office expense Rs.475. (8) Reimbursed the officer by cheque with Rs.600 for expense incurred by him in excess of

travel advance. REQUIRED Using the two-column general journal form record the above transaction:

a) Voucher Register. b) Cheque Register. c) General Journal. Question # 14: 2007 Regular – UOK Ahmad Company uses a voucher system for all major expenditures. Selected transactions for May 2007 are presented below: May 2007: 2. Drew a cheque for Rs.10,000 to establish petty cash fund. 4. Purchased equipment from Aslam Traders for Rs.25,000 terms 2/10, n/30. 7. Purchased furniture Rs.42,000 making a down payment of Rs.12,000 and agreeing to

pay the balance in 20 days. 10. Received credit memorandum from Aslam Traders Rs.15,000 for the return of a part of

equipment purchased from them. 13. Paid Aslam Traders invoice taking the discount. 16. Paid notes plus accrued interest was Rs.27,000 (face value of the notes Rs.24,000). 19. Advance paid by cheque Rs.22,000 for travelling expense of a business trip. 22. Purchased merchandise Rs.50,000 paying Rs.20,000 and signing notes for the balance. 25. Issued 10% 30 days notes for Rs.25,000 and paid Rs.45,000 in settlement of vouchers

payable Rs.68,000. 30. Reimbursed the officer by cheque with Rs.3,000 for expenses incurred by him in excess

of travel advance.

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REQUIRED Using General Journal forms show how the above transactions would be recorded in voucher register, cheque register or General Journal. Question # 15: 2008 Private – UOK Uroosa Company uses a voucher system for all major expenditures. Selected transactions for June, 2008 are presented below:

(a) Paid a note including accrued interest Rs.41,500 (face value of note was Rs.40,000). (b) Gave a 10% sixty day note in settlement of outstanding voucher for Rs.10,000. (c) Drew a cheque for Rs.5,000 to establish a petty cash fund. (d) Purchased goods from Adnan Store for Rs.60,000, making a down payment of Rs.20,000

& agreeing to pay the balance in 15 days. (e) Received credit memorandum from Adnan Store for Rs.5,000 for the return of goods

purchased from them. (f) Advance by cheque Rs.18,000 for travelling expense to an officer making business trip. (g) Drew a cheque for Rs.4,500 to reimburse petty cash fund office expense. (h) Reimbursed the officer by cheque of Rs.2,000 for trip expenses incurred by him in

excess of advance of Rs.18,000. (i) Paid Adnan Store invoice taking the discount.

REQUIRED Using General journal form show how the above transactions would be recorded by the company is the Voucher Register, Cheque Register and General Journal. Question # 16: 2010 Private – UOK The following transactions were completed during March 2010 by Khan Company, which uses voucher system:

01. Issued cheque No. 74 for Rs.20,000 in payment of outstanding voucher No. 99. 02. Issued cheque No. 75 for establishment of petty cash fund in the amount of Rs.5,000

(voucher No. 101). 03. Purchased merchandise for Rs.21,000 from Farooqui Ltd. on a/c. (voucher No. 102).

Khan Co. follows perpetual system. 04. Returned merchandise worth Rs.1,000 to Farooqui Ltd. (voucher No. 103). 05. Issued cheque No. 76 in payment of voucher No. 103 after deducting 2% cash discount. 06. Issued cheque No. 77 for travel advance to an employee (voucher No. 104). 07. Signed a 60-day 10% note of Rs.12,000 in payment of outstanding voucher No. 100. 08. Issued cheque No. 78 for Rs.15,600 in settlement of a note payable including interest

Rs.600 (voucher No. 105). 09. Issued cheque No. 79 for Rs.2,000 to reimburse the travel expense incurred by the

employee in excess of travel advance. (Voucher No. 106). 10. Issued cheque No. 80 to reimburse petty cash fund for supplies expense Rs.1,600,

conveyance expense Rs.1,100, and entertainment expense Rs.1,400. (Voucher No. 107). REQUIRED Using two – column General Journal form make entries as the case may be, in:

(a) Voucher register. (b) Cheques register.

Voucher System

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Sameer Hussain

Question # 17: 2006 Private – UOK Ali Company uses the voucher system. During Dec. 2006 the company entered into the following transactions: Dec. 01: Prepared voucher No. 126 for Imran Real Co. for the Dec. 2006 rent Rs.3,500. Dec. 02: Bought merchandise on account from Nestle Co. Rs.8,750 terms 2/10, n/30

voucher No. 127. Dec. 08: Prepared voucher No. 128 for SSGC for gas bill Rs.1,750. Dec. 12: Bought office supplies from Farhan Company on account Rs.875 term n/30,

voucher No. 129. Dec. 15: Bought merchandise on account from Khan Products Rs.17,500 terms 2/10,

n/E.O.M, voucher No. 130. Dec. 20: Received a bill for Rs.1,400 from Shani Advertising for advertisement published,

prepared voucher No. 131. Dec. 31: Prepare voucher No. 132 for the monthly salaries of the staff Rs.17,500. REQUIRED

(i) Make entries in General Journal for the above transactions. (ii) Prepare the Voucher Register as well total and rule off the Voucher Register.

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