Voucher Record.-The Voucher System saves a great deal of time and labor, and is very accurate. Although the system is fully explained on pages 242 to 246 it is thought advisable to illustrate the Voucher Record, as intended on above accounts.

The following form has been used by the writer, with entire satisfaction. When the accounts are classified and subdivided, this form can be used in many kinds of business with but few alterations.

When invoices are received for material, they are first checked and prices and extensions are guaranteed by the proper persons. If any errors are found, the corrections should be made upon the invoice with ink, being very careful to add to or deduct from the total as the case may be. Cash and Trade discounts should also be deducted from the total. When the invoices are thus prepared they are then attached to a voucher, a form of which is given on page 243. The voucher and attached invoices then go to the proper person for approval and signature.

The items of the invoices are then distributed to the accounts to which they belong, in the distribution on the back of the voucher.

The Voucher is then numbered, and entered in the Record, each item being entered into its own column as shown on the back. The total amount of the voucher is then credited to "Audited Vouchers," or to the person's account if one is to be kept. The name of the creditor must be written in the space provided, and the amount entered in the "Open Accounts" column. Thereafter the voucher will be known by

its number.

When a voucher is paid, for which an account has been opened, it is charged to the Cash Book in the "Open Accounts" column. The balance of this account shows the indebtedness to sundry creditors. When a voucher is paid, which has been credited to "Audited Vouchers," it must be charged on the Cash Book to "Audited Vouchers." The Balance of this account shows the amount of vouchers unpaid. The balance of the Open Accounts Payable and the Audited Vouchers Account, shows the indebtedness of the company, except Bonds and Mortgages.

A voucher is made for all pay-rolls and other labor payments, and must be treated as invoices. The items are distributed as for any other account.

If a cash payment is made on account, and not in full settlement

of the invoice, a receipt should be taken and attached to the original voucher, at the same time charging the person for the payment.

If a cash payment is made on account of an "Audited Voucher " the amount paid should be charged to Audited Vouchers, then deduct the amount paid from the original amount, or it will probably save trouble if the account be transferred to the Ledger as an

count Payable "

Open Ac

At the end of the month, after the vouchers have all been entered in the "Record," the columns should all be footed and proven. The total footings of all the columns in the division of General Expense, should be entered in the column "Total General Expense," the same with Distribution, Manufacturing, etc. The sum of all the debit footings thus found should equal the sum of the footings of the "Open Accounts," and "Audited Vouchers."

The total of all the columns in the division of Distribution, Manufacturing, etc., are then posted to the debit of their respective accounts in the General Ledger. The footings of the "Open Accounts" and "Audited Vouchers" columns are posted to the credit of their respective accounts, thus keeping the books in balance, while the posting is reduced to a minimum.

Sometimes an error will occur, or it may be desired to transfer an item from one account to another; when such is the case, credit the account in the Sundries Column and charge the proper account in the column to which it belongs. A Voucher should be made for all such entries, with full explanations.

Store Account.-If the material is kept in a store-room by a storekeeper, then it will be necessary to charge the "Store Account" from the invoices on the Voucher Record instead of charging the items to the various accounts. When the material is distributed from the Store it is then charged to the various accounts, and Store Account credited, though not for each item, as the total for each day may be used, thereby saving a great many entries.

The balance of the "Store Account" at the end of the month shows the amount in value of the supplies on hand. This balance will not agree exactly with that of an inventory, but will be accurate enough for practical purposes, if the account and material are carefully handled.

Monthly Statement of Operating Receipts and Expenses.

From the Voucher Record and Customer's Ledgers, the operating receipts and expenses can easily be taken and entered monthly on a sheet like that shown on page 216.

This form can be ruled upon a large sheet of paper, and made to
It will only be necessary to
any number of which may

run for five or six years. headings of the columns, follows:

change the be used, as

In addition to the above statement, there should be issued monthly a summary of operations, showing the itemized expenses for each division as shown by the Voucher Record, the lamp-hours, lamps, material, fuel oil, etc., used, proportion of expenses, labor, etc.

information can easily be obtained from engineers' and foremen's reports.