I have an ethical issue case I'm working on, but am stuck. I would like to know how would I determine which journal to use say for example, you go on a business trip to Australia and take your spouse along at company expense. Well that is unethical for sure, but you are best friends with the vice president so she decides to reimburse you for all the expenses incurred from travel and entertainment even thoug it is execessive. Well if the president reviews all expenses that are recorded in the cash payments journal this issue won't be seen since the vice president posted this information to the general journal. I'm confused. Does recording in the general journal rather than in the cash payments journal affect the amounts of cash and total expenses report in the financial statements? Why would the vice president record these expenses in the general journal? Can someone help me please?

It doesn't matter what journal it is posted in, it will all affect the cash account.

Perhaps the President only reviews the cash disbursements journal and not the general journal so that is how the Vice President plans to hide it from the President?

Wow... amazing... yes I agree with captain.. it will affect the cash account and reason can be the president doesn't see general journal!!
But hope you enjoy the trip with your other half !