CAT LEVEL 1

CAT1012 – Special Journals &

Voucher System

Use of Special Journals

1. Sales Journal is used to record sales of merchandise on account. Cash sales of merchandise are
recorded in a special journal called cash receipts journal.

Each entry in the Sales Journal is posted individually as a debit to the customer’s account in the
accounts receivable subsidiary ledger. The posting to the accounts receivable subsidiary ledger is
indicated by a check mark in the reference column of the Sales Journal.

2. Cash Receipts Journal is used to record all cash received.

CASH RECEIPTS JOURNAL Page 1

Cash Sales Discount Accounts Receivable Sales VAT Output Sundry CR
Date Received From OR # DR DR PR CR CR CR Account PR Amount
03-Jul Maria Toress 009 P 560 P P 500 P 60
6 Cash 010 1,500 Office Equipment 121 1,500
12 Nestor Alcantara 011 1,100 20 P 1,120
13 Rose Video 012 3,360 360 Rent Income 702 3,000
16 Paul Bernardo 013 2,420 44 P 2,464

The posting from the Cash Receipts Journal follows the same rules as posting from any special
journal. All monetary columns in the special journals are posted by the total at the end of the
month, except Sundries column which has to be posted individually in the ledger.

3. Purchases Journal is used to record the purchase of the merchandise on account business.

Purchase Journal
Accounts
Purchase VAT Input Payable
Date Inv. No Purchased from PR Debit Debit Credit
July 1 7897 KP Company P P3,500 P420 P3,920
5 2419 SL Company P 7,800 936 8,736
7 2045 Modern Co. P 20,000 2,400 22,400

The posting of the amount of column totals would be accomplished monthly, or more often as
necessary, with a debit to Purchases, a debit to VAT Input and a credit to Accounts Payable
accounts, in the general ledger. The individual creditor’s account would be posted to the
subsidiary ledger of the creditors.

CAT Level 1 Page 1 of 9

 4. Cash Payment Journal is used to record all payments of cash.

Cash Payments Journal

Purchase Accounts
Cash Discount Payable Purchases Vat Input Sundry DR
Date Paid to Check No. CR CR PR DR DR DR Account PR Amount
July 1 Cash 122511 P 5,000 Rent Expense 608 P 5,000
2 Cash 122512 4,256 3,800.00 456.00
11 KP Company 122513 3,850 70.00 P 3,920.00
Fast Delivery
13 Company 122514 1,400 150.00 Freight-in 504 1,250

The procedures for posting the cash disbursement journal are similar to those posting the cash
receipts journal. Specifically, the amount recorded in the Accounts Payable Column are posted
individually to the subsidiary ledger and its total to the control account.

Note: The use of the special journals does not eliminate the use of the general journal. Any other
transaction, which cannot be recorded in the special journals, will be recorded in this journal. A journal
voucher must compliment the transactions recorded in the general journal. The supporting paper of the
transaction is attached to the journal voucher.

Voucher System
It a control technique that requires every acquisition and subsequent payment be supported
by an approved voucher. It is a very important part of the overall accounting system because it
provides documentation and control of the disbursement process.

Elements of Internal Control Contained in a Voucher System:

1. Segregation of duties of employees.

2. Authorization procedures and related responsibilities.

3. Accounting procedures that require pre-numbering and accounting for the supporting
documents.

A Voucher System usually includes:

1. Vouchers
2. Voucher Register
3. Voucher Payable Account
4. Voucher Checks
5. Check Register

Voucher system may be used for materials, payroll, supplies, taxes, interest, payables, and other
expenditures. It is best used when one or more of the following conditions exist:
1. Invoices are paid in full when due rather than in partial payments.
2. Controls over expenditures are needed because there are a large number of transactions.
3. It is desirable to record invoices when received rather when payment is made.

PREPARING A VOUCHER:

1. Compare the invoice with the purchase requisition, purchase order, and receiving report to
determine that:
a) The quantity was requisitioned (purchase requisition), ordered (purchase order), and received
(receiving report).
b) The price and credit terms are proper (purchase order).

2. Determine whether the purchase is appropriate for the business.

3. Verify all computations on the invoice (quantity X price, and discounts).

CAT Level 1 Page 2 of 9

CAT Level 1 Page 3 of 9
RECORDING VOUCHERS:
When the voucher, invoice, purchase order, and receiving report are complete and in agreement,
the voucher is recorded in the voucher register. Since the voucher register is used to record the purchase
of assets and services, it can be thought of as an enlarged purchases journal; it is also similar to an invoice
regular.

CAT Level 1 Page 4 of 9

Voucher Register is a special journal used to record purchases of all types of assets and services in which
pre-number vouchers are recorded in numerical sequence. The number and kinds of columns in the
register depends on nature of business and the classifications of accounts.

The difference between a Voucher Register and Purchases Journal for a merchandising business is:
1. The Voucher Register has paid columns for Date and Check Number while the Purchases Journal
has none.

2. Vouchers for Payroll transactions and other payments in cash are entered in the Voucher
Register and not in the Purchases Journal.

3. For a manufacturing concern, Voucher register is provided with Manufacturing and Operating
Expense columns for accounts distribution.

After the voucher is entered in the Voucher Register, the voucher and the supporting documents
(purchase requisition, purchase order, receiving report, and purchase invoice) are stapled together and is
then filled in an Unpaid Voucher File, normally by due date.

Filing by due date will help management plan for cash requirements and ensure that vouchers are
paid on the due date and cash discounts are taken. The unpaid vouchers file serves as the accounts
payable subsidiary ledger but normally grouped by due dates rather than by suppliers or creditors.

FILING UNPAID VOUCHERS:

Posting from the voucher Register
1. Post each amount from the sundry account, debit and credit columns to the appropriate general
ledger account.

2. Insert the date in the Date column and the voucher register page number (ex. VR1) in the
posting reference column of each general ledger account.

3. Insert the general ledger account code in the Posting Reference column of the Sundry Accounts,
Debit or Credit column of the voucher register.

4. At month end, foot the amount columns, verify that the total of the debit columns equals the
credit column and then double rule the columns.

CAT Level 1 Page 5 of 9

 5. Post each column total except the Sundry Account columns to the particular general ledger
accounts indicated in the column headings.

6. Insert the date in the Date column and the voucher register page number in the posting
reference column of each general ledger account.

7. Insert the general ledger account code immediately below each column total except the Sundry
Account columns.

8. Insert a check mark immediately below the Sundry Account columns.

VOUCHER PAYMENT PROCESS:

On the due date, the voucher is pulled from the unpaid vouchers files is given to the person
responsible for preparing the voucher check who reviews the voucher and supporting documents to see
that expenditures is proper. The voucher check is then prepared and signed by the authorized person/s
and then sent to the payee.

Voucher Check is the special form of check with space for entering data about the voucher being paid.
The voucher check has two parts:

1. The check itself, which is similar to an ordinary check.

2. A statement attached which provides information regarding the invoice being paid and any
deductions.

CHECK REGISTER:
Check Register is a special journal used to record all checks written in a voucher system. A copy
of the used to enter the payment in a check register

Posting from Check Register

Only summary posting is required from the check register to the general ledger at the end of each
month.
1. At month end, foot the amount columns, verify that the total of the debit columns equals the
total of the credit columns, and then rule the columns.

2. Post each column total to the particular general ledger accounts indicated in the column headings.

3. Insert the date in the Date Column and the voucher register page number (ex CK1) in the Posting
reference column of each general ledger account.

4. Insert the general ledger account code immediately below each column total.

Paid Voucher File

After payment, vouchers are usually filed in numerical order in paid voucher file. Every blank in
the Payment column of the voucher register represents unpaid voucher to be included in the schedule.

CAT Level 1 Page 6 of 9

 If the schedule of unpaid voucher total and the Voucher Payable balance do not agree, use the
following procedures to trace the error:
1. Verify the total of the schedule.
2. Review the voucher register or the unpaid vouchers file to be sure none were missed or
counted twice.
3. Verify the posting to Voucher Payable in the general ledger.

ACCOUNTING FOR RETURNS AND ALLOWANCES:

1. If a complete return is made and a credit memo is received.

a) The return is noted on the voucher, the credit memo is attached, and the voucher is placed in the
paid voucher file.
b) The return is noted in the Payment column of the voucher register.
c) A general journal entry is made for the return by debiting Voucher Payable and crediting
Purchases Returns and Allowances or asset item and Vat Input Tax for items subject to Vat.

2. If a partial return is made and a credit memo is received.

a) The return is noted on the voucher, the credit memo is attached, and the voucher is returned to
the unpaid voucher’s file.
b) The return is noted in the Payment column of the voucher register.
c) A general journal entry is made for the return by debiting Vouchers Payable and crediting
Purchases Returns and Allowances or asset items and Vat Input Tax for items subject to Vat.
d) When the voucher is paid for the original amount less the return, the payment is noted in the
Payment column of the voucher register.

ACCOUNTING FOR PARTIAL PAYMENTS:

1. If partial payments (installment) are planned at the time a purchase is made.

a) A separate voucher is prepared for each payment.
b) Each voucher and payment are then recorded in the voucher register and check register in the
normal manner.

2. If the partial payment is made after a voucher is created and entered.

a) The original voucher is cancelled and a new voucher are created.
b) A notation is made in the Payment column of the original voucher in the voucher register.
c) A general journal entry is made to cancel the original voucher by debiting Voucher Payable and
crediting Purchases or asset items and Vat Input tax for items subject to Vat.
d) Two vouchers are prepared and entered in the voucher register.
e) Payments is noted in the payment column for the voucher paid and then placed the voucher in
the paid vouchers file.

CAT Level 1 Page 7 of 9

Sample Questions/Exercises:

I. In what journal will each of the following numbered transactions be recorded:

1. Cash investment by the owner

2. Acquisition of delivery equipment by issuing a promissory note.
3. Purchase of merchandise on account.
4. Purchase of merchandise for cash.
5. Receipt of a promissory note in settlement of an account.
6. Sale of merchandise for cash.
7. Sale of merchandise on credit.
8. Consumption of supplies, purchase of which was recorded in the Supplies account.
9. Transferring the resulting balance of income summary to the retained earnings account (for
corporation) or owner’s capital account (for sole proprietorship).
10. Payment of an account within the discount period.
11. Collection of an account within the discount period.
12. The owner withdrew money from the business.
13. The owner invested furniture and fixtures to the business.
14. Payment of notes payable.
15. Provision for doubtful accounts and depreciation.
16. The owner withdrew merchandise for personal use.
17. Investment of land by the owner.
18. Return of defective merchandise purchased on account.
19. Payment of salaries.
20. Cash refund to a customer

II. Multiple Choice Questions:

1. Which of the following is not an example of a special journal?

a. Cash receipts journal c. Cash disbursements journal
b. Purchases journal d. Guest ledger

2. Which of the following statements about special-purpose journals is true?

a. Information is more readily available because more entries are recorded in the general
journal.
b. The possibility of errors is diminished because account names and amounts are not
posted individually.
c. Individual entries in a special-purpose journal are posted to their general ledger
accounts.
d. Account names have to be repeated for each entry in a special-purpose journal.

3. This form is prepared to document the need to make a purchase and requests that the
specific items and quantities be purchased.
a. Purchase order c. Purchase requisition
b. Purchase invoice d. Purchase journal

4. A __________ system is a system in which an approved invoice is posted to the vendor

account and is stored in an open invoice file until payment is made by check.
a. voucher c. nonvoucher
b. cycle d. blanket invoice

5. The largest peso amount total in a cash receipts journal is found in the:
a. Sales column c. Sundry accounts column
b. Accounts receivable column d. Cash column

6. Which of the following is not an advantage of a voucher system?

a. several invoices may be included on one voucher, reducing the number of checks
b. disbursement vouchers may be pre-numbered and tracked through the system
c. the time of voucher approval and payment can be kept separate
d. it is a less expensive and easier system to administer than other systems

CAT Level 1 Page 8 of 9

 7. Which document helps to ensure that the receiving clerks actually count the number of
goods received?
a. packing list c. blind copy of purchase order
b. shipping notice d. invoice

8. This form is issued by the buyer, and presented to the seller, to indicate the details for
products or services that the seller will provide to the buyer. Information included on this
form would be: products, quantities, and agreed-upon prices.
a. Purchase order c. Purchase requisition
b. Purchase invoice d. Purchase journal

9. The document that identifies the items being returned, along with the relevant information
regarding the vendor, quantity and price, is called:
a. credit memo c. Receiving report
b. Purchase requisition d. Debit memo

10. When a payment has been made, the cash disbursements clerk will clearly mark the invoice
with information pertaining to the date and the check number used to satisfy the obligation.
This process is called:
a. Marking the invoice c. Retiring the invoice
b. Cancelling the invoice d. Destroying the invoice

11. Each time an entry is made in the purchases journal, the credit would be entered in the:
a. Purchases column c. Input tax column
b. Accounts payable column d. Accounts receivable column

12. A special journal contains columns for cash, purchases, purchase discounts and accounts
payable. This journal is:
a. A purchase journal c. A sales journal
b. A cash disbursement journal d. A cash receipt journal

13. It is a document that shows that an acquisition is proper and that payment is authorized.
a. Purchase order c. Purchase Requisition
b. Voucher d. Official Receipt

14. A voucher system is designed to control a company's:

a. cash receipts. c. cash payments.
b. stock sales. d. internal finances.

15. The accounting record includes the details of amounts owed to each vendor is called the:
a. Accounts payable subsidiary ledger
b. Purchases journal
c. Accounts receivable subsidiary ledger
d. Receiving log

MCQs Suggested Answers: d, b, c, c, d, d, c, a, d, b, b, b, b, c, a

CAT Level 1 Page 9 of 9