FAR 12

Voucher System - formalized system of internal control over disbursement 


Voucher Systems - Composed of records, methods and procedures employed in verifying and recording liabilities and paying and recording of payments


Voucher System two special journal ;

  1. Voucher Register

  2. Check register


Internal control procedures over cash disbursement:


  1. Voucher must be prepared first for every transactions that involves payment

  2. Voucher Must be recorded in voucher register

  3. Check must be issued upon the payment

  4. Check must be recorded in check register


Voucher - Document serves as evidence of authority to pay cash


Voucher - special form used in recording data pertaining liability and purpose of its payment


Voucher Register - a special journal where vouchers are recorded


Voucher Register - similar to purchase journal


Check - written instrument signed by the depositor ordering the bank to pay a specific sum of money to the specified person or entity.


Check register - special journal containing chronological and serial records of all check issued. 


Check Register - modified cash payment journal





Three parties involved in a check ;


  1. Drawer - the one who signs the check

  2. Drawee - the bank on which the check is drawn

  3. Payee - the one whose order the check is drawn