Cash sales, $120.

30. Paid salaries from Dec. 18: salesman $45; bookkeeper $35; billing clerk $15.

Paid rent of store month $50; printing $ 20; postage and telegrams $12.50.

Cash sales, $165.75.

Post sales ledger, purchase ledger, and main ledger. Make trial balance and show through Loss and Gain Account the present capital of each partner. Furniture and Fixtures is an asset and remains unchanged. Merchandise inventory, $6535.60; expense inventory, $50.

EXERCISE XVII.

THE VOUCHER METHOD OF BOOKKEEPING.

248. The Voucher Method is one of the most recent improvements in bookkeeping methods. It takes its name from the fact that for every disbursement a special voucher is prepared. This voucher shows in exact detail the purpose for which the money is paid, and must be properly checked, verified, and approved before it is paid. While this method was designed especially for the use of large corporations, it may be readily adapted to the needs of almost any business.

249. The Voucher. -There are several forms of vouchers in use, but the fundamental purpose is the same in each. The illustration on the next page shows the form of a voucher used by one of the largest manufacturing corporations in New England, and this lesson is based upon their method of using vouchers. You will notice that in this illustration the voucher and the check to be used in making payment are printed together with perforations between, so that the check can be detached. The number of the check is the same as the number of the voucher, and the amount of the check must of course correspond with the amount of the voucher. The voucher shows at the top the name and address of the person to whom the money is due.

In the column headed "Distribution" are printed the names of the accounts to which disbursements are most frequently charged, and, after a bill has been properly verified and attached to the voucher, this column must show the amount to be debited to each account. In the columns at the right are entered the date and amount of each bill that is attached to the voucher, and of course the total of this column must agree with the total of the distribution column.

250. Method of Using Vouchers. As soon as goods are received, the bill is checked by the receiving clerk. When it has been ascertained that all the goods have been received in good condition, the bill is checked again to verify the prices and extensions, and, if any errors are found, these are corrected on the face of the bill. The bill is now

attached to the back of the voucher, and the several items of the bill are classified on the face of the voucher. The voucher with the bills attached is next passed to the head bookkeeper for a final examination and approval. If bills are paid once a month, all the bills from the same party, received during the month, may be attached to one voucher.

May 1

Name

No. 2140

190Z
New England Envelope Company.
S.S. Wilson & Co.

Address Holyoke, Mass.

$394.73

S.S.

Pay to the order of. S. Xilson & Ca

BOOKKEEPER

No.2149

$39473

Three hundred ninety-four It! -- Dollars

100
ENVELOPE COMPANY

COUNTERSIGNED BY

H.J. Williams

MANAGER

By.

Wms CAdams.

TREASURER

NOTE.-The original voucher of which the above illustration is a reduced facsimile is 8 by 10 inches.

251. The Voucher Register is a book in which a record is made of each voucher as it is issued. When the voucher method is used, it is not necessary to keep an invoice or purchase book. The voucher register contains a special column for each account that is shown in the distribution column of the voucher. The amount of the voucher is entered in the column marked "Vouchers Payable," and each item that appears in the distribution column of the voucher is entered in its proper column in the voucher register. The book is proved by ascertaining whether the sum of all the distribution columns is equal to the sum of the vouchers payable column.

The entries in this book are not posted till the end of the month, and then the sum of each of the distribution columns is posted to the debit side of the proper account in the ledger, and the sum of the vouchers payable column is posted to the credit side of vouchers payable account. When the voucher method of bookkeeping is used, no accounts are kept with the persons from whom goods are purchased. Vouchers payable account corresponds to accounts payable account, with which you are already familiar.

The following illustration shows a voucher register arranged for use in connection with the voucher on page 219. You will note that there is a column for each item that appears in the distribution column of the voucher and an additional column for such miscellaneous items as are not provided for by the special columns.

252. Payments. When a voucher is paid, the date of payment is entered in the voucher register. The entry in the cash book for the payment shows the number and amount of the voucher and may also show the name of the creditor. The amount is entered in vouchers payable column in the cash book, and at the end of the month the footing of this column is posted to the debit of vouchers payable account in the ledger.

When all of the vouchers have been paid, vouchers payable account will balance; and at any time the total of the unpaid vouchers, as shown by the voucher register, should agree with the balance of the vouchers payable account.

253. The Voucher Check. The check used with this voucher is a distinctive feature of this system. Many companies send the voucher to the creditor with a request that he receipt and return it at once, but vouchers are sometimes lost, and this check is designed to make it unnecessary to send the voucher to the creditor. Some companies use a combined voucher and check in order to insure the prompt return of the voucher. When a voucher of this kind is used, the check is not detached from the voucher, but the voucher is returned through the bank with the check. This makes a very cumbersome form of check, and many banks object to handling them.

The face of the check used with this voucher, as shown by the illus