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    Special and Combination Journals

    Uploaded by

    Vivienne Layron
    The document discusses special journals and combination journals used in accounting to record specific transaction types. It also describes the voucher system used to verify and approve payments through a voucher approval process involving various documents and registers to record and track authorized payments.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Special and Combination Journals

    Uploaded by

    Vivienne Layron
    206 views1 page
    The document discusses special journals and combination journals used in accounting to record specific transaction types. It also describes the voucher system used to verify and approve payments through a voucher approval process involving various documents and registers to record and track authorized payments.

    Original Description:

    Financial Accounting and Reporting

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    The document discusses special journals and combination journals used in accounting to record specific transaction types. It also describes the voucher system used to verify and approve payments through a voucher approval process involving various documents and registers to record and track authorized payments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    206 views1 page

    Special and Combination Journals

    Uploaded by

    Vivienne Layron
    The document discusses special journals and combination journals used in accounting to record specific transaction types. It also describes the voucher system used to verify and approve payments through a voucher approval process involving various documents and registers to record and track authorized payments.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Special and Combination Journals

    Special journals are journals of original entry other than general journal that are designed for recording specific types of
    transactions of a similar nature. Major advantage of special journals is that their use permits division of labor. It also reduces
    recording time. Each entry may be posted separately to the general ledger. It permits all entries in a given account in a specific
    journal to be added and posted as single aggregate posting.

    The function of special-purpose journals are to reduce and simply the work in accounting and to allow division of labor. Most
    entities used the following special journals:

    Sales Journal Sales of merchandise on account Posting: S


    Cash Receipts Journal Receipts of cash: cash sales, collections CR
    Purchases Journal Credit purchases of merchandise & other items P
    Cash Disbursement Journal Payments of cash CD
    General Journal Entries that do not fit in other journals GJ

    Voucher System

    Verification and approval of payments as means of control are the procedures followed in the Voucher System. Under this
    system, checks may be drawn only upon a written authorization in the form of a voucher approved by responsible officials.

    Voucher A serially numbered form that identifies the name and address of the payee, due date, terms, description
    and invoice amount. It includes a section for designated officers to sign their approval of payment.
    Before the approval for payment, various personnel perform verification procedures (voucher package):
    (a) Comparison of purchase requisition, purchase order, invoice, receiving report…prices, quantities, terms, etc.
    (b) Review of extension and footings in the invoice
    (c) Approval of account distribution (entry: general ledger)
    Voucher Takes the place of Purchase Journal and provides a record of all authorized check payments.
    Register All expenditures are recorded first in the voucher register.
    Approved vouchers are entered in a numerical sequence (prenumbered).
    The register has columns for expense & asset accounts frequently debited such as Purchase, Freight in,
    Office Supplies & Transportation out. Other Accounts section is also provided with debits & credits.
    Unpaid Voucher register has columns to record date of payment & check number.
    Voucher After vouchers have been entered in the voucher register, the vouchers are filed in the order of required
    File date of payment in order not to miss discounts & its credit standing will not be impaired.
    The absence of entries in the date payment indicate that the voucher is unpaid –Accounts Payable.
    Check Simplifies the Cash Disbursements Journal.
    Register The register record all CHECK payments. The checks are entered in the check register in a numerical
    sequence for easy checking – check number and date of payment.
    On or before the due date, the voucher package is removed from the UNPAID voucher file & forwarded to
    disbursing officer for final approval of payments.
    Paid Voucher Paid vouchers along with its supporting documents are filed in numerical sequence in a paid vouchers file.
    File This file is then available for examination by internal or external auditors requiring information about a
    specific expenditure.

    Special Problems in Voucher System

    a. Gross or Net of discounts: Voucher register (A/P = P6,000) Check Register (Cash = P5,800, Purchase Discounts = P200)
     Discounts not availed must be taken up as Discount Lost in the General Journal
    b. Purchases Returns and Allowances (ex. P3,000). Original voucher has to be cancelled (P25,000) & new voucher has to be
    issued net of Returns = P20,000.
    c. Partial Payments, a separate voucher is prepared for each check issued. If a single voucher is originally prepared for an
    invoice & later decided to pay in installments, the original voucher is cancelled & a new voucher is issued.

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