THE EXPENDITURE CYCLE

VOUCHERS PAYABLE SYSTEM

VP System
As an alternative to the AP procedures.
Under this system, the AP departm
ent uses cash disbursement voucher and
maintains a voucher register
 Debit Credit
Invoice AP Sub Purchases
Date Vendor Number
Inven Control Acct Post Ref AP
Acct # Returns #500 Hampshire Supply Co.
#150 Control
9/4 Jones and Hraper Co. 2484 $ 1,500.00 4001 $ 1,500.00 Purchases Journal
9/5 Ogment Supply 4117 $ 3,600.00 4002 $ 3,600.00
9/6 Jones and Hraper Co. 2671 $ 1,000.00 4001 $ 1,000.00
9/7 Superior Machine 9982 $ 200.00 4005 $ 200.00 After the AP clerk performs the three-way
match, he or she prepares a cash
9/8 Jones and Hraper Co. 2690 $ 500.00 4001 $ 500.00
disbursement voucher to approve
$ 6,800.00 $ 6,800.00 payment.

Journal Voucher Hampshire Supply Co.

Accounts Payable Subsidiary Ledger
Dr. Cr.
4001 - Jones and Harper
Inventory $6,800.00 Date Transaction DEBIT CREDIT BALANCE
Control
9/4 Credit Purchases $ 1,500.00 $ 1,500.00
9/6 Credit Purchases $ 1,000.00 $ 1,000.00
Acct Pay $6,800.00 9/8 Credit Purchases $ 500.00 $ 500.00
Control
9/12 Cash Payment $ 3,000.00 $ -

4002 -- Ogment Supply

Date Transaction DEBIT CREDIT BALANCE
General Ledger 9/5 Credit Purchases $ 3,600.00 $ 3,600.00
 Hampshire Supply Co. No. 1870
Cash Disbursement Voucher
Cash Date: 9/12/20xx

Disbursement Disburse Check to: Jones and Harper Co.

1620 North Main St.
Voucher Bethlehem PA. 18017

Vouchers provide improved Invoice Invoice Invoice Discount

Net Amount
control over cash Number Date Amount Amount
disbursements and allow 2484 9/4/20xx $ 1,500.00 $ 1,500.00
firms to consolidate several
payments to the same 2671 9/6/20xx $ 1,000.00 $ 1,000.00
supplier on a single voucher, 2690 9/8/20xx $ 525.00 $ 25.00 $ 500.00
thus reducing the number of
checks written.

Prepared Approved Total Amount: Account Debited:

By: RJK By: JAN $3,000.00 4001
 Cash This PowerPoint Template has clean and
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Disbursement With this many slides you are able to make a
complete PowerPoint Presentation that best

Journal suit your needs.

Check Voucher Credit GL/Subsidiary Freight 5-

Date Description Posted AP 401 Op Expen Other Posted
No. No. Cash Purch. Disc. Account Debited 16

9/4/20xx 101 1867 Martin Motors $ 500.00 Auto $ 500.00 /

9/4/20xx 102 1868 Pen Power $ 100.00 Utility / $ 100.00
9/12/20xx 103 1869 Acme Auto $ 500.00 Purchases $ 500.00 /
9/14/20xx 104 1870 Jones and Harper $ 3,000.00 $ 3,000.00
 POST TO
GENERAL LEDGER
Voucher The General Ledger function receives a journal voucher from the AP department and
an account summary from inventory control. The GL function posts the data contained
Register in the journal voucher to the inventory and AP control accounts and reconciles the
inventory control account with the inventory subsidiary summary. The journal voucher
is then filed in the approved journal voucher file. With this step, the purchases phase of
the expenditure cycle is completed.

Hampshire Supply Co.

Voucher Register
Paid Voucher Selling Fixed Misc. Debits
Voucher Supplies Administrative
Date Payabel Merchandise Debit Expense Assets
No. Check No. Date Debit Expense Debit Acct. No. Amount
(Credit) Debit Debit
9/12/20xx 1870 104 9/14 $ 3,000.00 $ 3,000.00
9/13/20xx 1871 $ 3,600.00 $ 3,600.00
9/14/20xx 1872 105 9/15 $ 500.00 $ 500.00
 Cash Disbursement System
Identify Liabilities Due

The CD process begins in

the AP department where
each day the AP clerk
reviews the open AP file
for items due for payment Post to General
Prepare Cash Disbursement Journal
The GL function
The CD clerk receives the
receives the journal
AP packet and reviews the
documents for voucher from CD
completeness and clerical and the AP account
accuracy. summary from
accounts payable.
Update AP Record
Upon receipt of the paid
AP packet, the AP clerk
removes the liability by
debiting the vendor’s AP
subsidiary ledger account.
DFD for
Open AP File Check Register
CASH Due Date, Payment Detail
Amount Due
DISBURSEMENT
SYSTEM AP Sub Ledger
Identify
Liabilities
AP Packet Prepare
Cash
Check
Supplier
The CD system processes Due Disbursement
the payment obligations
created in the purchases Check Copy 2
system. The principal
objective of this system is to Update AP
Record
ensure that only valid Journal Voucher File
creditors receive payment
and that amounts paid are
timely and correct. AP Summary
Closed AP File
If the system makes payment early,
the firm forgoes interest income that
it could have earned on the funds. Approved Journal Voucher Post to JV Posting Detail
If obligations are paid late, however, General
the firm will lose purchase discounts Ledger
or may damage its credit standing.
Journal Voucher File General Ledger
Thank you
Vouchers Payable System