Chapter 10A, Problem 1P

1.

To determine

Prepare the voucher register for the February month.

Explanation of Solution

Voucher: A voucher is a pre-numbered document which indicates the authorized approval of payment for a particular acquisition.

Voucher register is a journal that records the voucher once they are approved. Voucher register is also known as book of original entry.

Prepare the voucher register for the February month.

Table (1)

2.

To determine

Prepare the voucher register and check register for the March month.

Explanation of Solution

Check register is the journal used to record all the checks, cash payment and outlay of cash during an accounting period. Check register is also known as cash disbursements journal.

Prepare the voucher register for the March month.

Table (2)

Prepare the check register for the March month.

Table (3)

Working note: 1

Calculate the purchase discounts from K Company.

$\begin{array}{c}\text{Purchase discount = }\left(\text{Purchase amount}\times \text{Discount percentage}\right)\\ =\$3436\times 1\%\\ =\$34.36\end{array}$

Working note: 2

Calculate the purchase discounts from Mr.J. R S.

$\begin{array}{c}\text{Purchase discount = }\left(\text{Purchase amount}\times \text{Discount percentage}\right)\\ =\$4,710\times 2\%\\ =\$94.2\end{array}$

Working note: 3

Calculate the purchase discounts from L, Inc.

$\begin{array}{c}\text{Purchase discount = }\left(\begin{array}{l}\left[\text{Purchase amount}-\text{Freight in}\right]\\ \times \text{Discount percentage}\end{array}\right)\\ =\left(\left[\$3,962-\$72\right]\times 2\%\right)\\ =\$3890\times 2\%\\ =\$77.8\end{array}$

Working note: 4

Calculate the purchase discounts from M M Company.

$\begin{array}{c}\text{Purchase discount = }\left(\text{Purchase amount}\times \text{Discount percentage}\right)\\ =\$6,260\times 2\%\\ =\$125.2\end{array}$

3.

To determine

Total of the voucher register and check register for the March month.

Explanation of Solution

Total of the voucher register:

$\begin{array}{c}\text{ Total credit of voucher register = Voucher payable}\\ \text{=\$20,673}\end{array}$

$\begin{array}{c}\text{Total debit of voucher register}=\left(\begin{array}{l}\text{Purchase+ Freight in + wages payable}\\ \text{+ Other accounts payable}\end{array}\right)\\ =\$10,150+\$72+\$4,985+\$5,466\\ =\$20,673\end{array}$

Total of the check register:

$\begin{array}{c}\text{ Total credit of check register = }\left(\text{Purchase discount+Cash}\right)\\ \text{=\$331}\text{.56+\$24,457}\text{.44}\\ \text{=\$24,789}\end{array}$

$\begin{array}{c}\text{Total debit of check register}=\text{Voucher payable}\\ =\$24,789\end{array}$

4.

To determine

Show the equality of credit and debit column of voucher register and check register.   

Explanation of Solution

Debit: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit.

Credit: It refers to selling goods and services to the customers on account.

Equality of debits and credits in voucher register:

Equality of debits and credits
Particulars	Debits($)	Particulars	Credits($)
Purchases	10,150	Vouchers payable	20,673
Freight in	72.00
Wages payable	$4,985
other	5,466
Total	$20,673		$20,673

Table (4)

Equality of debits and credits in check register:

Equality of debits and credits
Particulars	Debits($)	Particulars	Credits($)
Vouchers payable	24,789	Purchase discounts	331.56
		cash	24,457.44
Total	$20,673		$20,673

Table (5)