Page 254 - Accounting Information Systems

C H A P TER 5 The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures 225

FI G U R E
5-8 CASH DISBURSEMENT VOUCHER

Hampshire Supply Co. No. 1870
Cash Disbursement Voucher
9/12/09
Date__________
Disburse Check to: Jones and Harper Co.
1620 North Main St.
Bethlehem Pa. 18017
Invoice Invoice Invoice Discount Net
Number Date Amount Amount Amount
2484 9/4/09 $1,500 $1,500
2671 9/6/09 $1,000 $1,000
2690 9/8/09 $525 $25 $500

Prepared Approved Total $3,000 Account
By: RJK By: JAN Amount Debited 4001

FI G U R E
5-9 VOUCHER REGISTER

Hampshire Supply Co.
Voucher Register

Paid Selling Fixed Misc. Debits
Voucher Administrative
Date Voucher Payable Merchandise Debit Supplies Debit Expense Expense Debit Assets
No. Check Date (Credit) Debit Debit Acct. No. Amount
No.
9/12/09 1870 104 9/14 3,000 3,000
9/13/09 1871 3,600 3,600
9/14/09 1872 105 9/15 500 500

THE CASH DISBURSEMENTS SYSTEMS
The cash disbursements system processes the payment of obligations created in the purchases system.
The principal objective of this system is to ensure that only valid creditors receive payment and that
amounts paid are timely and correct. If the system makes payments early, the firm forgoes interest income
that it could have earned on the funds. If obligations are paid late, however, the firm will lose purchase
discounts or may damage its credit standing. Figure 5-10 presents a DFD conceptually depicting the in-
formation flows and key tasks of the cash disbursements system.